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Exhibit 4.10  

[FORM
OF]

   

AMENDED AND RESTATED CREDIT AGREEMENT,

   

dated as of August    , 2005,

  

(amending and restating the Credit Agreement, dated as of August 15, 2003)

  

among

  

REDDY ICE GROUP, INC.,

as the Borrower,

  

VARIOUS FINANCIAL INSTITUTIONS AND OTHER PERSONS

FROM TIME TO TIME PARTIES HERETO,

as the Lenders,

   

CREDIT SUISSE,

Cayman Islands Branch,

as the Administrative Agent, and

   

BEAR STEARNS CORPORATE LENDING INC.,

and

LEHMAN BROTHERS INC.,

as the Co-Documentation Agents,

  

and

  

CIBC WORLD MARKETS CORP.,

as the Syndication Agent 

  

CIBC WORLD MARKETS CORP.,

BEAR STEARNS CORPORATE LENDING INC.,

CREDIT SUISSE,

Cayman Islands Branch, and

LEHMAN BROTHERS INC.,

   

as Co-Lead Arrangers and Co-Bookrunners. 

  

 
 

TABLE OF CONTENTS    
    

	 
	 	 
	 	Page

	ARTICLE I	 	DEFINITIONS AND ACCOUNTING TERMS	 	2
	    	 	 	 	 
	SECTION 1.1.	 	Defined Terms	 	2
	SECTION 1.2.	 	Use of Defined Terms	 	31
	SECTION 1.3.	 	Cross-References	 	32
	SECTION 1.4.	 	Accounting and Financial Determinations	 	32
	    	 	 	 	 
	ARTICLE II	 	COMMITMENTS, BORROWING AND ISSUANCE PROCEDURES, NOTES AND LETTERS OF CREDIT	 	32
	    	 	 	 	 
	SECTION 2.1.	 	Commitments	 	32
	SECTION 2.2.	 	Reductions in Commitment Amounts	 	36
	SECTION 2.3.	 	Borrowing Procedures	 	37
	SECTION 2.4.	 	Continuation and Conversion Elections	 	38
	SECTION 2.5.	 	Funding	 	39
	SECTION 2.6.	 	Issuance Procedures	 	39
	SECTION 2.7.	 	Register; Notes	 	42
	    	 	 	 	 
	ARTICLE III	 	REPAYMENTS, PREPAYMENTS, INTEREST AND FEES	 	43
	    	 	 	 	 
	SECTION 3.1.	 	Repayments and Prepayments; Application	 	43
	SECTION 3.2.	 	Interest Provisions	 	45
	SECTION 3.3.	 	Fees	 	46
	    	 	 	 	 
	ARTICLE IV	 	CERTAIN LIBO RATE AND OTHER PROVISIONS	 	47
	    	 	 	 	 
	SECTION 4.1.	 	LIBO Rate Lending Unlawful	 	47
	SECTION 4.2.	 	Deposits Unavailable	 	47
	SECTION 4.3.	 	Increased LIBO Rate Loan Costs, etc	 	48
	SECTION 4.4.	 	Funding Losses	 	48
	SECTION 4.5.	 	Increased Capital Costs	 	49
	SECTION 4.6.	 	Taxes	 	49
	SECTION 4.7.	 	Payments, Computations, etc	 	52
	SECTION 4.8.	 	Sharing of Payments	 	53
	SECTION 4.9.	 	Setoff	 	54
	SECTION 4.10.	 	Replacement of Lenders	 	54
	SECTION 4.11.	 	Mitigation of Claims	 	55
	    	 	 	 	 
	ARTICLE V	 	CONDITIONS TO EFFECTIVENESS	 	55
	    	 	 	 	 
	SECTION 5.1.	 	Initial Credit Extension	 	55
	SECTION 5.2.	 	All Credit Extensions	 	57
	    	 	 	 	 
	ARTICLE VI	 	REPRESENTATIONS AND WARRANTIES	 	58
	    	 	 	 	 
	SECTION 6.1.	 	Organization, etc	 	58
	SECTION 6.2.	 	Due Authorization, Non-Contravention, etc	 	58
	 	 	 	 	 

i

 

	SECTION 6.3.	 	Government Approval, Regulation, etc	 	59
	SECTION 6.4.	 	Validity, etc	 	59
	SECTION 6.5.	 	Financial Information	 	59
	SECTION 6.6.	 	No Material Adverse Change; Solvency	 	59
	SECTION 6.7.	 	Litigation, Labor Controversies, etc	 	60
	SECTION 6.8.	 	Subsidiaries	 	60
	SECTION 6.9.	 	Ownership of Properties	 	60
	SECTION 6.10.	 	Taxes	 	60
	SECTION 6.11.	 	Pension and Welfare Plans	 	60
	SECTION 6.12.	 	Environmental Warranties	 	61
	SECTION 6.13.	 	Accuracy of Information	 	62
	SECTION 6.14.	 	Regulations T, U and X	 	62
	SECTION 6.15.	 	Absence of Any Undisclosed Liabilities	 	62
	SECTION 6.16.	 	Status of Obligations as Senior Indebtedness, etc	 	62
	    	 	 	 	 
	ARTICLE VII	 	COVENANTS	 	63
	    	 	 	 	 
	SECTION 7.1.	 	Affirmative Covenants	 	63
	SECTION 7.2.	 	Negative Covenants	 	68
	    	 	 	 	 
	ARTICLE VIII	 	EVENTS OF DEFAULT	 	79
	    	 	 	 	 
	SECTION 8.1.	 	Listing of Events of Default	 	79
	SECTION 8.2.	 	Action if Bankruptcy	 	82
	SECTION 8.3.	 	Action if Other Event of Default	 	82
	    	 	 	 	 
	ARTICLE IX	 	THE ADMINISTRATIVE AGENT	 	82
	    	 	 	 	 
	SECTION 9.1.	 	Actions	 	82
	SECTION 9.2.	 	Funding Reliance, etc	 	83
	SECTION 9.3.	 	Exculpation	 	83
	SECTION 9.4.	 	Successor	 	83
	SECTION 9.5.	 	Loans by Credit Suisse or any Successor Administrative Agent	 	84
	SECTION 9.6.	 	Credit Decisions	 	84
	SECTION 9.7.	 	Copies, etc	 	84
	SECTION 9.8.	 	Reliance by Administrative Agent	 	85
	SECTION 9.9.	 	Defaults	 	85
	SECTION 9.10.	 	Syndication Agent	 	85
	    	 	 	 	 
	ARTICLE X	 	MISCELLANEOUS PROVISIONS	 	86
	    	 	 	 	 
	SECTION 10.1.	 	Waivers, Amendments, etc	 	86
	SECTION 10.2.	 	Notices; Time	 	87
	SECTION 10.3.	 	Payment of Costs and Expenses	 	87
	SECTION 10.4.	 	Indemnification	 	88
	SECTION 10.5.	 	Survival	 	89
	SECTION 10.6.	 	Severability	 	89
	SECTION 10.7.	 	Headings	 	90
	SECTION 10.8.	 	Execution in Counterparts, Effectiveness, etc	 	90
	SECTION 10.9.	 	Governing Law; Entire Agreement	 	90
	 	 	 	 	 

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	SECTION 10.10.	 	Successors and Assigns	 	90
	SECTION 10.11.	 	Sale and Transfer of Credit Extensions; Participations in Credit Extensions	 	90
	SECTION 10.12.	 	Other Transactions	 	94
	SECTION 10.13.	 	Forum Selection and Consent to Jurisdiction	 	94
	SECTION 10.14.	 	Waiver of Jury Trial	 	95
	SECTION 10.15.	 	Limitation on Interest	 	95
	SECTION 10.16.	 	Confidentiality	 	96
	SECTION 10.17.	 	USA PATRIOT Act Notice	 	97
	SECTION 10.18.	 	Effect of Amendment and Restatement of the Existing Credit Agreement	 	97
	    	 	 	 	 
	SCHEDULE I	 	—Disclosure Schedule	 	 
	SCHEDULE II	 	—Percentages; LIBOR Office; Domestic Office	 	 
	    	 	 	 	 
	EXHIBIT A-1	 	—Form of Revolving Note	 	 
	EXHIBIT A-2	 	—Form of Term Note	 	 
	EXHIBIT A-3	 	—Form of Swing Line Note	 	 
	EXHIBIT B-1	 	—Form of Borrowing Request	 	 
	EXHIBIT B-2	 	—Form of Issuance Request	 	 
	EXHIBIT C	 	—Form of Continuation/Conversion Notice	 	 
	EXHIBIT D	 	—Form of Lender Assignment Agreement	 	 
	EXHIBIT E	 	—Form of Compliance Certificate	 	 
	EXHIBIT F	 	—Form of Amended and Restated Parent Guaranty and Pledge Agreement	 	 
	EXHIBIT G	 	—Conformed Copy of Subsidiary Guaranty	 	 
	EXHIBIT H	 	—Conformed Copy of Borrower Pledge and Security Agreement	 	 
	EXHIBIT I	 	—Conformed Copy of Subsidiary Pledge and Security Agreement	 	 
	EXHIBIT J	 	—Form of Amendment Effective Date Certificate	 	 
	EXHIBIT K	 	—Form of Solvency Certificate	 	 
	EXHIBIT L	 	—Form of Affirmation and Consent	 	 

iii

 
 

AMENDED AND RESTATED CREDIT AGREEMENT    

        THIS
AMENDED AND RESTATED CREDIT AGREEMENT, dated as of August    , 2005, is among REDDY ICE GROUP, INC., a Delaware corporation (the
"Borrower"), the various financial institutions and other Persons from time to time parties hereto (collectively, the
"Lenders"), CREDIT SUISSE, Cayman Islands Branch ("Credit Suisse"), as the administrative agent for the
Lenders (in such capacity, the "Administrative Agent"), CIBC WORLD MARKETS CORP. ("CIBC World Markets"),
as the syndication agent for the Lenders (in such capacity, the "Syndication Agent"), LEHMAN BROTHERS INC.
("Lehman") and BEAR, STEARNS & CO. INC. ("Bear Stearns"), as the
co-documentation agents, and CIBC WORLD MARKETS, BEAR STEARNS, CREDIT SUISSE and LEHMAN, as the co-lead arrangers and joint bookrunners (collectively, in such capacities, the
"Lead Arrangers"). 

 
 

W I T N E S S E T H:    

        WHEREAS,
pursuant to the Credit Agreement, dated as of August 15, 2003 (as amended, supplemented, amended and restated or otherwise modified prior to the date hereof, the
"Existing Credit Agreement"), among the Borrower, the lenders party thereto (the "Existing Lenders"),
Credit Suisse, as administrative agent, and the other agents, the Existing Lenders committed to extend to the Borrower a $35,000,000 revolving credit facility to make revolving loans (the
"Existing Revolving Loans"), (such term and each other capitalized term used but not defined in the preamble and the recitals having the meanings
provided in Section 1.1), and a $180,000,000 term loan facility to make term loans, $171,850,000 of which are outstanding on the Amendment
Effective Date (the "Existing Term Loans", and collectively with the Existing Revolving Loans, the "Existing
Loans"); 

        WHEREAS,
the parties hereto wish to amend and restate the Existing Credit Agreement in its entirety on the Amendment Effective Date to, among other things, provide for new Initial Term
Loans (the "New Initial Term Loans") to the Borrower in an amount equal to the Initial Term Loan Commitment Amount (it being understood that each
Existing Lender who executes and delivers this Agreement shall be deemed, upon effectiveness of this Agreement, to have exchanged its Existing Term Loan (which Existing Term Loan shall thereafter be
deemed terminated) for a New Initial Term Loan under this Agreement in the same aggregate principal amount as such Lender's Existing Term Loan, and such Existing Lender shall thereafter become a
Lender under this Agreement), on and subject to the terms and conditions of this Agreement; 

        WHEREAS,
in connection with the Transaction (defined below) and the ongoing working capital and general corporate needs of the Borrower: 

        (a)   Parent
intends to issue on the Amendment Effective Date Capital Securities through a primary offering raising gross proceeds of not less than $110,000,000 (the
"Planned IPO"); 

        (b)   the
Borrower and Parent will use the proceeds of new Loans made hereunder on the Amendment Effective Date and the net proceeds of the Planned IPO received by Parent (and
contributed to the Borrower) to: 

          (i)  refinance
the Existing Loans outstanding on the Amendment Effective Date (the "Refinancing"); 

         (ii)  acquire,
redeem or repay not less than a majority of the outstanding Subordinated Notes on or after the Amendment Effective Date (the
"Subordinated Note Payment"); 

        (iii)  receive
the consent to certain amendments to the indenture governing the Parent Notes from not less than a majority of the holders of the outstanding Parent Notes on
or after the Amendment Effective Date (the "Parent Notes Consent"); and 

        (iv)  pay
cash fees (including the Monitoring Agreement Buyout Payment), transaction bonuses and expenses associated with the Planned IPO, the Refinancing and the
Subordinated Note Payment in an amount not to exceed $50,000,000 (the "Expense Payments"; and 

 

collectively
with the Planned IPO, the Refinancing, the Subordinated Note Payment and the Parent Notes Consent, the "Transaction"). 

        WHEREAS,
the Borrower has requested that the Existing Credit Agreement be amended and restated in its entirety to become effective and binding on the Borrower pursuant to the terms of
this Agreement, and the Lenders (including certain of the Existing Lenders) have agreed (subject to the terms of this Agreement) to amend and restate the Existing Credit Agreement in its entirety to
read as set forth in this Agreement, and it has been agreed by the parties to the Existing Credit Agreement
that the Existing Loans that are not being repaid and other "Obligations" (under, and as defined in, the Existing Credit Agreement) shall be governed by and deemed to be outstanding under this
Agreement with the intent that the terms of this Agreement shall supersede the terms of the Existing Credit Agreement (each of which shall hereafter have no further effect upon the parties thereto);  provided that any Rate Protection Agreements with any one or more Existing Lenders (or their respective Affiliates) shall continue unamended and in full
force and effect; and 

        WHEREAS,
all Obligations are and shall continue to be secured by all collateral on which a Lien is granted to the Administrative Agent pursuant to any Loan Document; 

        NOW,
THEREFORE, the parties hereto hereby agree to amend and restate the Existing Credit Agreement, and the Existing Credit Agreement is hereby amended and restated in its entirety as
follows: 

 
 

ARTICLE I
  
    DEFINITIONS AND ACCOUNTING TERMS    
    

        SECTION
1.1.    Defined Terms.    The following terms (whether or not underscored) when used in this Agreement,
including its preamble and recitals, shall, except where the context otherwise requires, have the following meanings (such meanings to be equally applicable to the singular and plural forms thereof): 

        "Administrative Agent" is defined in the preamble and includes each other Person appointed
as the successor Administrative Agent pursuant to Section 9.4.

        "Affected Lender" is defined in Section 4.10.

        "Affiliate" of any Person means any other Person which, directly or indirectly, controls, is controlled by or is under common control with
such Person. "Control" of a Person means the power, directly or indirectly, (a) to vote 10% or more of the Capital Securities (on a fully diluted basis) of such Person having ordinary voting
power for the election of directors, managing members or general partners (as applicable) or (b) to direct or cause the direction of the management and policies of such Person (whether by
contract or otherwise). 

        "Affirmation and Consent" means the Affirmation and Consent, dated as of the Amendment Effective Date, among each Obligor and the
Administrative Agent substantially in the form of Exhibit L hereto. 

        "Aggregate Initial Term Loan Amount" is defined in clause (b) of  Section 2.1.3.

        "Agreement" means, on any date, the Existing Credit Agreement as amended and restated on the Amendment Effective Date and as the same may
thereafter from time to time be further amended, supplemented, amended and restated or otherwise modified and in effect on such date. 

        "Alternate Base Rate" means, on any date and with respect to all Base Rate Loans, a fluctuating rate of interest per annum equal to the
higher of (a) the Base Rate in effect on such day and (b) the Federal Funds Rate in effect on such day plus 1/2 of 1%.
Changes in the rate of interest on that portion of any Loans maintained as Base Rate Loans will take effect simultaneously with each change in the Alternate Base Rate. The Administrative Agent will
give notice promptly to the Borrower and the 

2

 

Lenders
of changes in the Alternate Base Rate; provided that the failure to give such notice shall not affect the Alternate Base Rate in effect after
such change. 

        "Amendment Effective Date" means the date this Agreement becomes effective pursuant to  Section 10.8 which is expected to be on August 15, 2005. 

        "Amendment Effective Date Certificate" means the certificate executed and delivered by an Authorized Officer of the Borrower pursuant to
the terms of this Agreement, substantially in the form of Exhibit J hereto. 

        "Annualized Basis" means, (a) with respect to the end of the first Fiscal Quarter of the Borrower ending after the Amendment
Effective Date, the applicable amount for such Fiscal Quarter multiplied by four, (b) with respect to the second Fiscal Quarter of the Borrower ending after the Amendment Effective Date, the
applicable amount for such Fiscal Quarter and the immediately preceding Fiscal Quarter multiplied by two and (c) with respect to the third Fiscal Quarter of the Borrower ending after the
Amendment Effective Date, the applicable amount for such Fiscal Quarter and the immediately preceding two Fiscal Quarters multiplied by one and one-third;  provided that such applicable amount shall be
determined on a pro forma basis as if the Transaction was completed on July 1, 2005. 

        "Applicable Margin" means: 

        (a)   with
respect to Initial Term Loans, 0.75% for Initial Term Loans maintained as Base Rate Loans and 1.75% for Initial Term Loans maintained as LIBO Rate Loans;  provided that in the event that the Borrower
incurs an Incremental Term Loan and such Incremental Term Loan (i) (A) matures on or before the one
year anniversary of the Stated Maturity Date for Initial Term Loans and (B) has a higher Applicable Margin than the Applicable Margin in effect at such time for the Initial Term Loans, the
Applicable Margin in respect of outstanding Initial Term Loans will automatically be increased to match the Applicable Margin of such Incremental Term Loans or (ii) (A) matures after the
one year anniversary of the Stated Maturity Date for Initial Term Loans and (B) has an Applicable Margin that is more than 0.25% higher than the Applicable Margin in effect at such time for the
Initial Term Loans, then the Applicable Margin in effect at such time in respect of outstanding Initial Term Loans will automatically be increased by an amount equal to (1) the Applicable
Margin for such Incremental Term Loan less (2) the Applicable Margin then in effect for the Initial Term Loans  less (3) 0.25%; 

        (b)   with
respect to Incremental Term Loans, the rate per annum agreed by the Borrower and the Lenders that have agreed to provide the Incremental Term Loans; and 

        (c)   with
respect to Revolving Loans, 0.75% for Revolving Loans maintained as Base Rate Loans and 1.75% for Revolving Loans maintained as LIBO Rate Loans. 

        "Approved Fund" means any Person (other than a natural Person) that (a) 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, and (b) is administered or managed by a Lender, an Affiliate of a Lender or an
entity or an Affiliate of an entity that administers or manages a Lender. 

        "Asset Swap" means a Disposition of assets in exchange for assets of a similar nature and to be used by the Borrower or a Subsidiary in
accordance with Section 7.2.1, or a combination of such assets and cash or cash equivalents, in each case having a Fair Market Value comparable
to the Fair Market Value of the assets Disposed. 

        "Audited Financial Statements" is defined in clause (b) of  Section 7.1.1.

        "Authorized Officer" means, relative to any Obligor, those of its officers, general partners or managing members (as applicable) whose
signatures and incumbency shall have been certified to the Administrative Agent, the Lenders and the Issuers pursuant to Section 5.1.1.

3

 

        "Available Cash" means, for any Fiscal Quarter, for the Borrower and its Subsidiaries, the sum (which may be negative) of: 

        (a)   EBITDA
for such Fiscal Quarter; 

        plus

        (b)   to
the extent not included in Net Income used in determining such EBITDA, the cash amount realized in respect of extraordinary, non-recurring or unusual
gains; 

        minus

        (c)   the
sum of: 

          (i)  to
the extent included in or added to Net Income in determining such EBITDA, (A) Interest Expense actually paid in cash by the Borrower or such Subsidiary,
(B) income Taxes actually paid in cash, (C) the cash cost of any extraordinary, non-recurring or unusual losses and (D) payments made in cash on account of
non-cash losses or non-cash charges expensed, in each case, during such Fiscal Quarter; 

         (ii)  Capital
Expenditures made during such Fiscal Quarter, excluding any Capital Expenditures financed with the proceeds (A) of Indebtedness permitted hereunder and
identified pursuant to clause (c) of Section 7.1.1 as having been applied to finance
Capital Expenditures (other than any Capital Expenditures financed with the proceeds of Revolving Loans and Swing Line Loans), (B) from sales of assets permitted hereunder or
(C) received as a result of Casualty Events; 

        (iii)  cash
consideration paid for Permitted Acquisitions during such Fiscal Quarter, excluding any Permitted Acquisitions financed with the proceeds (A) of
Indebtedness permitted hereunder and identified pursuant to clause (c) of Section 7.1.1 as
having been applied to finance Permitted Acquisitions, (B) from sales of assets permitted hereunder or (C) received as a result of Casualty Events; and 

        (iv)  payments
and prepayments of principal of such Person's Indebtedness made during such Fiscal Quarter (other than prepayments of Revolving Loans or Swing Line Loans),
other than to the extent funded from the incurrence of Indebtedness (other than Revolving Loans) otherwise permitted hereunder. 

        "Base Rate" means, at any time, the rate of interest then most recently established by the Administrative Agent in New York as its base
rate for Dollars loaned in the United States. The Base Rate is not necessarily intended to be the lowest rate of interest determined by the Administrative Agent in connection with extensions of
credit. 

        "Base Rate Loan" means a Loan bearing interest at a fluctuating rate determined by reference to the Alternate Base Rate. 

        "Bear Stearns" is defined in the preamble. 

        "Borrower" is defined in the preamble. 

        "Borrower Pledge and Security Agreement" means the Pledge and Security Agreement, dated as of the Original Closing Date, executed and
delivered by an Authorized Officer of the Borrower pursuant to the Existing Credit Agreement, a conformed copy of which is attached as Exhibit H
hereto, together with any supplemental Foreign Pledge Agreements delivered pursuant to the terms of this Agreement, in each case as amended, supplemented, amended and restated or otherwise modified
from time to time. 

        "Borrowing" means the Loans of the same type and, in the case of LIBO Rate Loans, having the same Interest Period made by all Lenders
required to make such Loans on the same Business Day and pursuant to the same Borrowing Request in accordance with Section 2.3.

4

 

        "Borrowing Request" means a Loan request and certificate duly executed by an Authorized Officer of the Borrower substantially in the form
of Exhibit B-1 hereto. 

        "Business Day" means (a) any day which is neither a Saturday or Sunday nor a legal holiday on which banks are authorized or
required to be closed in New York, New York and (b) relative to the making, continuing, prepaying or repaying of any LIBO Rate Loans, any day which is a Business Day described in  clause (a)
above and which is also a day on which dealings in Dollars are carried on in the London interbank eurodollar market.
 

        "Capital Expenditures" means, for any period, the aggregate amount of (a) all expenditures of the Borrower and its Subsidiaries for
fixed or capital assets made during such period which, in accordance with GAAP, would be classified as capital expenditures and (b) Capitalized Lease Liabilities incurred by the Borrower and
its Subsidiaries during such period. The term Capital Expenditures shall not include any expenditures for Permitted Acquisitions otherwise permitted hereunder. 

        "Capital Securities" means, with respect to any Person, all shares, interests, participations or other equivalents (however designated,
whether voting or non-voting) of such Person's capital, whether now outstanding or issued after the Amendment Effective Date, including common shares, preferred shares, membership
interests in a limited liability company, limited or general partnership interests in a partnership or any other equivalent of such ownership interest. 

        "Capitalized Lease Liabilities" means, with respect to any Person, all monetary obligations of such Person and its Subsidiaries under any
leasing or similar arrangement which have been (or, in accordance with GAAP, should be) classified as capitalized leases, and for purposes of each Loan Document the amount of such obligations at any
time shall be the capitalized amount thereof at such time, determined in accordance with GAAP, and the stated maturity thereof shall be the date of the last payment of rent or any other amount due
under such lease prior to the first date upon which such lease may be terminated by the lessee without payment of a premium or a penalty. 

        "Cash Collateralize" means, with respect to a Letter of Credit, the deposit of immediately available funds into a cash collateral account
maintained with (or on behalf of) the Administrative Agent on terms reasonably satisfactory to the Administrative Agent in an amount equal to the Stated Amount of such Letter of Credit. 

        "Cash Equivalent Investment" means, at any time: 

        (a)   any
direct obligation of (or obligation unconditionally guaranteed by) the United States or a State thereof (or any agency or political subdivision thereof, to the
extent such obligations are supported by
the full faith and credit of the United States or a State thereof) maturing not more than one year after such time; 

        (b)   commercial
paper maturing not more than 360 days from the date of issue, which is issued by (i) a corporation (other than an Affiliate of any Obligor)
organized under the laws of any State of the United States or of the District of Columbia and rated "A-1" or higher by S&P or "P-1" or higher by Moody's, or (ii) any
Lender (or its holding company); 

        (c)   any
certificate of deposit, time deposit or bankers acceptance, maturing not more than one year after its date of issuance, which is issued by either (i) any bank
organized under the laws of the United States (or any State thereof) and which has (x) a credit rating of "A2" or higher from Moody's or "A" or higher from S&P and (y) a combined capital
and surplus greater than $500,000,000, or (ii) any Lender; 

        (d)   any
repurchase agreement having a term of 90 days or less entered into with any Lender or any commercial banking institution satisfying the criteria set forth in  clause (c)(i); or 

        (e)   shares
of any mutual fund whose investment guidelines restrict substantially all of such fund's investments to investments of the type specified in  clauses (a) through (d)
 above. 

5

 

        "Casualty Event" means the damage, destruction or condemnation, as the case may be, of property of any Person or any of its Subsidiaries. 

        "CERCLA" means the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended. 

        "CERCLIS" means the Comprehensive Environmental Response Compensation Liability Information System List. 

        "Change in Control" means 

        (a)   any
person or group (within the meaning of Sections 13(d) and 14(d) under the Exchange Act), other than the Permitted Holders, shall become the ultimate "beneficial
owner" (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 30% of the outstanding Voting Securities of Parent,
collectively, beneficially and of record on a fully diluted basis; or 

        (b)   the
failure of Parent at any time to directly own beneficially and of record on a fully diluted basis 100% of the outstanding Capital Securities of the Borrower; or 

        (c)   during
any period of 24 consecutive months, individuals who at the beginning of such period constituted the Board of Directors of Parent (together with any new directors
whose election to such Board or whose nomination for election by the stockholders of Parent was approved by a vote of a majority of the directors then still in office who were either directors at the
beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the Board of Directors of Parent then in office; or 

        (d)   the
occurrence of any "Change of Control" (or similar term) under (and as defined in) any Subordinated Debt Document. 

        "CIBC World Markets" is defined in the preamble. 

        "Code" means the Internal Revenue Code of 1986, and the regulations thereunder, in each case as amended, reformed or otherwise modified
from time to time. 

        "Commitment" means, as the context may require, the Initial Term Loan Commitment, an Incremental Term Loan Commitment, the Revolving Loan
Commitment, the Letter of Credit Commitment or the Swing Line Loan Commitment. 

        "Commitment Amount" means, as the context may require, the Initial Term Loan Commitment Amount, the Revolving Loan Commitment Amount, the
Letter of Credit Commitment Amount, an Incremental Term Loan Commitment Amount or the Swing Line Loan Commitment Amount. 

        "Commitment Termination Date" means, as the context may require, an Incremental Term Loan Commitment Termination Date, the Initial Term
Loan Commitment Termination Date or the Revolving Loan Commitment Termination Date. 

        "Commitment Termination Event" means 

        (a)   the
occurrence of any Event of Default with respect to the Borrower described in clauses (a) through  (d) of Section 8.1.9; or 

        (b)   the
occurrence and continuance of any other Event of Default and either 

          (i)  the
declaration of all or any portion of the Loans to be due and payable pursuant to Section 8.3, or 

6

  

         (ii)  the
giving of notice by the Administrative Agent, acting at the direction of the Required Lenders, to the Borrower that the Commitments have been terminated pursuant to  Section 8.3. 

        "Compliance Certificate" means a certificate duly completed and executed by an Authorized Officer of the Borrower, substantially in the
form of Exhibit E hereto. 

        "Contingent Liability" means any agreement, undertaking or arrangement by which any Person guarantees, endorses or otherwise becomes or is
contingently liable upon (by direct or indirect agreement, contingent or otherwise, to provide funds for payment, to supply funds to, or otherwise to invest in, a debtor, or otherwise to assure a
creditor against loss) the Indebtedness of any other Person (other than by endorsements of instruments in the course of collection or deposit), or guarantees the payment of dividends or other
distributions upon the Capital Securities of any other Person. The amount of any Person's obligation under any Contingent Liability shall (subject to any limitation set forth therein) be deemed to be
the outstanding principal amount of the debt, obligation or other liability guaranteed thereby. 

        "Continuation/Conversion Notice" means a notice of continuation or conversion and certificate duly executed by an Authorized Officer of
the Borrower, substantially in the form of Exhibit C hereto. 

        "Controlled Group" means all members of a controlled group of corporations and all members of a controlled group of trades or businesses
(whether or not incorporated) under common control which, together with the Borrower, are treated as a single employer under Sections 414(b) or 414(c) of the Code or Section 4001 of ERISA. 

        "Copyright Security Agreement" means any Copyright Security Agreement executed and delivered by any Obligor, in substantially the form of
Exhibit C to any Security Agreement, as amended, supplemented, amended and restated or otherwise modified from time to time. 

        "Credit Extension" means, as the context may require, (a) the making of a Loan by a Lender, or (b) the issuance of any
Letter of Credit, or the extension of any Stated Expiry Date of any existing Letter of Credit, by an Issuer. 

        "Credit Parties" means, collectively, the Lenders, the Issuers, the Administrative Agent, the Syndication Agent and, in each case, each of
their respective successors, transferees and assigns. 

        "Credit Suisse" is defined in the preamble. 

        "Cumulative Distributable Cash" means, for the Borrower and its Subsidiaries as of any date of determination, the sum of: 

        (a)   $10,000,000; 

 plus  

        (b)   the
aggregate amount of Available Cash for each Fiscal Quarter ended during the most recently completed Reference Period; 

 plus  

        (c)   net
cash proceeds received by Parent in respect of issuances or sales of its Capital Securities after the Amendment Effective Date but prior to such date of
determination to the extent such proceeds are contributed to the Borrower as equity; 

7

 

 minus  

        (d)   the
aggregate amount of: 

          (i)  Restricted
Payments made pursuant to clause (f) of  Section 7.2.6 prior to such date; and 

         (ii)  Investments
made pursuant to clause (m) of Section 7.2.5
(net of any dividends, distributions or other payments received in cash in respect of such Investment) prior to such date; 

 minus  

        (e)   to
the extent occurring after the end of the most recently ended Reference Period and until taken into account in determining Available Cash for the Fiscal Quarter in
which it has occurred, the aggregate amount of: 

          (i)  amounts
applied towards Permitted Acquisitions pursuant to clause (b)(ii)(B) of  Section 7.2.9 prior to such date, excluding any Permitted Acquisitions
financed with the proceeds (A) of Indebtedness permitted hereunder
and identified pursuant to clause (c) of Section 7.1.1 as having been applied to finance
Permitted Acquisitions, (B) from sales of assets permitted hereunder or (C) received as a result of Casualty Events; 

         (ii)  prepayments
of the Loans made pursuant to clause (e) of  Section 3.1.1 (other than Revolving Loans and Swing Line Loans) prior to such date; and 

        (iii)  payments,
repurchases or redemptions of Subordinated Notes made pursuant to clause (c) of  Section 7.2.7 prior to such date. 

        "Current Assets" means, on any date, all assets which, in accordance with GAAP, would be included as current assets on a consolidated
balance sheet of the Borrower and its Subsidiaries at such date. 

        "Current Liabilities" means, on any date, all amounts which, in accordance with GAAP, would be included as current liabilities on a
consolidated balance sheet of the Borrower and its Subsidiaries at such date, excluding current maturities of Indebtedness. 

        "Default" means any Event of Default or any condition, occurrence or event which, after notice or lapse of time or both, would constitute
an Event of Default. 

        "Disbursement" is defined in Section 2.6.2. 

        "Disbursement Date" is defined in Section 2.6.2. 

        "Disclosure Schedule" means the Disclosure Schedule attached hereto as Schedule I, as it may be amended, supplemented, amended and
restated or otherwise modified from time to time by the Borrower with the written consent of the Required Lenders. 

        "Disposition" (or similar words such as "Dispose") means any sale, transfer, lease,
contribution or other conveyance (including by way of merger) of, or the granting of options, warrants or other rights to, any Person's or such Person's Subsidiaries' assets (including accounts
receivable and Capital Securities of such Person's Subsidiaries) to any other Person in a single transaction or series of transactions. 

        "Dividend Suspension Period" means any period (a) commencing on the date of delivery of a Compliance Certificate demonstrating that
the Leverage Ratio is greater than 3.75:1.00 as of the last day of the then most recently completed Fiscal Quarter of the Borrower covered by such Compliance Certificate delivered pursuant to  clause (c) of Section 7.1.1 and (b) ending on the first date thereafter on which
the Borrower delivers a Compliance Certificate pursuant to clause (c) of Section 7.1.1

8

 

demonstrating
that the Leverage Ratio is equal to or less than 3.75:1.00 as of the last day of the then most recently completed Fiscal Quarter of the Borrower covered by such Compliance Certificate;  provided that,
for the avoidance of doubt, a Dividend Suspension Period cannot occur prior to the delivery of the Compliance Certificate for the Fiscal
Quarter ending September 30, 2005. 

        "Dollar" and the sign "$" mean lawful money of the United States. 

        "Domestic Office" means the office of a Lender designated as its "Domestic Office" on  Schedule II hereto or in a Lender Assignment Agreement, or such other office
within the United States as may be designated from time to time by
notice from such Lender to the Administrative Agent and the Borrower. 

        "EBITDA" means, for any applicable period, the sum of (a) Net Income, plus (b) to the extent deducted in determining Net
Income, the sum of (i) amounts attributable to depreciation and amortization, (ii) income tax expense, (iii) Interest Expense, (iv) any other non-cash charges
(less non-cash income) for which no cash reserves (or receivables) have been or will be set aside (or created), including
non-cash compensation expenses, (v) any loss from the extinguishment of Indebtedness, (vi) any fees paid prior to the Amendment Effective Date in respect of the Monitoring
Agreement, (vii) the Transaction Adjustments, (viii) all fees and expenses incurred in connection with Permitted Acquisitions to the extent accounted for as expenses and (ix) for
the four Fiscal Quarters ending after September 30, 2004, an amount equal to the sum of (x) the special transaction payments paid to certain members of management and certain directors
in connection with the issuance of the Parent Notes in an amount not to exceed $1,300,000 plus (y) an amount not to exceed $4,000,000 for other expenses incurred in connection with the issuance
of the Parent Notes and the related amendment to the Existing Credit Agreement. 

        "Eligible Assignee" means (a) a Lender, (b) an Affiliate of a Lender, (c) an Approved Fund or (d) any other
Person (other than a natural Person) approved (in the case of this clause (d)) by the Issuer (but then only in the case of any assignment of the
Revolving Loan Commitment) and, unless (i) such Person is taking delivery of an assignment of Term Loans in connection with physical settlement of a credit derivatives transaction,
(ii) the assignment is being made to such Person by the Administrative Agent or the Syndication Agent during the Primary Syndication or (iii) a Default has occurred and is continuing,
the Borrower (each such approval not to be unreasonably withheld or delayed). 

        "Environmental Laws" means all applicable foreign, federal, state or local statutes, laws (including common law), ordinances, codes,
rules, regulations and final orders of a Governmental Authority (including consent decrees and administrative orders) relating to public health and safety, occupational safety and health or protection
of the environment. 

        "ERISA" means the Employee Retirement Income Security Act of 1974, as amended, and any successor statute thereto of similar import,
together with the regulations thereunder, in each case as in effect from time to time. References to sections of ERISA also refer to any successor sections thereto. 

        "Event of Default" is defined in Section 8.1. 

        "Exchange Act" means the Securities Exchange Act of 1934, as amended. 

        "Exemption Certificate" is defined in clause (e) of  Section 4.6. 

        "Existing Credit Agreement" is defined in the first recital. 

        "Existing Lenders" is defined in the first recital. 

        "Existing Letters of Credit" means each of the Letters of Credit set forth on Item 2.1.2
of Schedule II hereto. 

9

 

        "Existing Loans" is defined in the first recital. 

        "Existing Revolving Loan Lender" is defined in Section 2.1.5. 

        "Existing Revolving Loans" is defined in the first recital. 

        "Existing Term Loans" is defined in the first recital. 

        "Expense Payments" is defined in the third recital. 

        "Fair Market Value" means, with respect to any asset, the price (after taking into account any liabilities relating to such asset) that
would be negotiated in an arm's length transaction for cash between a willing seller and a willing and able buyer, neither of which is under any compulsion to complete the transaction, as such price
is determined in good faith by management of the Borrower or by the Board of Directors of the Borrower or a duly authorized committee thereof. Fair Market Value (other than of any asset with a public
trading market) in excess of $5,000,000 shall be determined by the Board of
Directors of the Borrower acting reasonably and in good faith and shall be evidenced by a board resolution delivered to the Administrative Agent. 

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

        "Fee Letters" means (a) the confidential fee letter, dated the Original Closing Date, from Credit Suisse to the Borrower and
(b) the confidential fee letter, dated March 14, 2005, from CIBC World Markets, CIBC, Bear Stearns, Bear Stearns Corporate Lending Inc., Lehman, Lehman Commercial
Paper Inc. and Credit Suisse to the Borrower, in each case, as amended, supplemented, amended and restated or otherwise modified from time to time. 

        "Filing Statements" means all UCC financing statements or other similar financing statements and UCC termination statements required
pursuant to the Loan Documents. 

        "Fiscal Quarter" means a quarter ending on the last day of March, June, September or December. 

        "Fiscal Year" means any period of twelve consecutive calendar months ending on December 31; references to a Fiscal Year with a
number corresponding to any calendar year (e.g., the "2005 Fiscal Year") refer to the Fiscal Year ending on December 31 of such calendar year. 

        "Foreign Pledge Agreement" means any supplemental pledge agreement governed by the laws of a jurisdiction other than the United States or
a State thereof executed and delivered by the Borrower or any of its Subsidiaries pursuant to the terms of this Agreement, in form and substance reasonably satisfactory to the Administrative Agent, as
may be necessary or desirable under the laws of organization or incorporation of a Subsidiary to further protect or perfect the Lien on and security interest in any Collateral (as defined in a Pledge
Agreement). 

        "Foreign Subsidiary" means any Subsidiary that is not a U.S. Subsidiary. 

        "F.R.S. Board" means the Board of Governors of the Federal Reserve System or any successor thereto. 

        "GAAP" means (a) subject to clause (b) below, with respect to the
interpretation of all accounting terms used herein and in each other Loan Document, the calculation of all accounting determinations and computations required to be made hereunder or thereunder
(including under Section 7.2.4 and in respect of any defined terms used herein or in any other Loan Document), those U.S. generally 

10

 

accepted
accounting principles applied in the preparation of the Borrower's audited consolidated financial statements for the Fiscal Year ended December 31, 2004 and (b) with respect to
the financial statements of the Borrower required to be delivered pursuant to clauses (a) and  (b) of Section 7.1.1 or any similar financial statements of the Borrower or any of its
Subsidiaries required to be delivered hereunder or under any other Loan Document, U.S. generally accepted accounting principles in effect at the time (or for the period) to which such financial
statements relate. 

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

        "Guarantor" means Parent and each Subsidiary Guarantor. 

        "Guaranty" means, as the context may require, the Parent Guaranty and Pledge Agreement and the Subsidiary Guaranty. 

        "Hazardous Material" shall mean any material, substance, form of energy or pathogen that (a) constitutes a "hazardous substance" as
defined by CERCLA, "hazardous waste" as defined by the Resource Conservation and Recovery Act, as amended, or a "pollutant", "contaminant", "hazardous material", "hazardous chemical", or "regulated
substance" within the meaning of any applicable Environmental Laws, or (b) is otherwise regulated by, or that otherwise gives rise to liability under, any applicable Environmental Laws. Without
limiting the generality of the foregoing, Hazardous Material shall include any substance that contains any ammonia, ammonia hydroxide, asbestos, polychlorinated biphenyls, or petroleum, or that is
flammable, explosive, radioactive or corrosive. 

        "Hedging Obligations" means, with respect to any Person, all liabilities of such Person under currency exchange agreements, interest rate
swap agreements, interest rate cap agreements and interest rate collar agreements, and all other agreements or arrangements designed to protect such Person against fluctuations in interest rates or
currency exchange rates. 

        "herein", "hereof", "hereto",
"hereunder" and similar terms contained in any Loan Document refer to such Loan Document as a whole and not to any particular Section, paragraph or
provision of such Loan Document. 

        "Impermissible Qualification" means any qualification or exception to the opinion or certification of any independent public accountant as
to any financial statement of the Borrower 

        (a)   which
is of a "going concern" or similar nature; 

        (b)   which
relates to the limited scope of examination of matters relevant to such financial statement; or 

        (c)   which
relates to the treatment or classification of any item in such financial statement and which, as a condition to its removal, would require an adjustment to such
item the effect of which would be to cause the Borrower to be in Default. 

        "including" and "include" means including without limiting the generality of any
description preceding such term, and, for purposes of each Loan Document, the parties hereto agree that the rule of ejusdem generis shall not be
applicable to limit a general statement, which is followed by or referable to an enumeration of specific matters, to matters similar to the matters specifically mentioned. 

        "Incremental Term Loan" is defined in clause (a) of  Section 2.1.4. 

        "Incremental Term Loan Commitment" is defined in clause (a) of  Section 2.1.4.

        "Incremental Term Loan Commitment Termination Date" means, with respect to any Incremental Term Loan Commitment, the earliest of
(a) any date agreed by the Borrower, the Lender providing 

11

 

such
Incremental Term Loan Commitment and the other Lenders providing related Incremental Term Loan Commitments, (b) the date upon which Incremental Term Loans in an aggregate principal amount
equal to the related Incremental Term Loan Commitment Amount shall have been made (immediately after the making of such Incremental Term Loans on such date) and (c) the date on which any
Commitment Termination Event occurs. 

        "Indebtedness" of any Person means: 

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

        (b)   all
obligations, contingent or otherwise, relative to the face amount of all letters of credit, whether or not drawn, and banker's acceptances issued for the account of
such Person; 

        (c)   all
Capitalized Lease Liabilities of such Person; 

        (d)   for
purposes of Section 8.1.5 only, all other items which, in accordance with GAAP, would be included as
liabilities on the balance sheet of such Person as of the date at which Indebtedness is to be determined; 

        (e)   net
Hedging Obligations of such Person; 

        (f)    whether
or not so included as liabilities in accordance with GAAP, all obligations of such Person to pay the deferred purchase price of property or services (excluding
trade accounts payable in the ordinary course of business which are not overdue for a period of more than 90 days or, if overdue for more than 90 days, as to which a dispute exists and
adequate reserves in conformity with GAAP have been established on the books of such Person), and indebtedness secured by (or for which the holder of such indebtedness has an existing right,
contingent or otherwise, to be secured by) a Lien on property owned or being acquired by such Person (including indebtedness arising under conditional sales or other title retention agreements),
whether or not such indebtedness shall have been assumed by such Person or is limited in recourse; 

        (g)   obligations
arising under Synthetic Leases; and 

        (h)   all
Contingent Liabilities of such Person in respect of any of the foregoing. 

The
Indebtedness of any Person shall include the Indebtedness of any other Person (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as
a result of such Person's ownership interest in or other relationship with such Person, except to the extent the terms of such Indebtedness provide that such Person is not liable therefor. 

        "Indemnified Liabilities" is defined in Section 10.4. 

        "Indemnified Parties" is defined in Section 10.4. 

        "Initial Term Loan" is defined in clause (a) of  Section 2.1.3. 

        "Initial Term Loan Commitment" means, relative to any Lender, such Lender's obligation (if any) to make Initial Term Loans pursuant to  Section 2.1.3. 

        "Initial Term Loan Commitment Amount" means, on any date, $240,000,000. 

        "Initial Term Loan Commitment Termination Date" means the earlier of (a) the Amendment Effective Date (immediately after the making
of the Initial Term Loans on such date), and (b) the date on which any Commitment Termination Event occurs. 

        "Interest Coverage Ratio" means, as of the last day of any Fiscal Quarter, the ratio computed for the period consisting of such Fiscal
Quarter and each of the three immediately preceding Fiscal 

12

 

Quarters
of (a) EBITDA (for all such Fiscal Quarters) to (b) cash Interest Expense paid or accrued (for all such Fiscal Quarters);  provided that for each
of the first three Fiscal Quarters ending after the Amendment Effective Date, Interest Expense shall be determined on an
Annualized Basis. 

        "Interest Expense" means, for any applicable period, the aggregate interest expense of the Borrower and its Subsidiaries for such
applicable period determined in accordance with GAAP, including the portion of any cash payments made or accrued in respect of Capitalized Lease Liabilities allocable to interest expense. 

        "Interest Period" means, relative to any LIBO Rate Loan, the period beginning on (and including) the date on which such LIBO Rate Loan is
made or continued as, or converted into, a LIBO Rate Loan pursuant to Sections 2.3 or 2.4 and
shall end on (but exclude) the day which numerically corresponds to such date one, two, three or six months, and if available to all Lenders required to make such LIBO Rate Loans, nine or twelve
months thereafter (or, if such month has no numerically corresponding day,
on the last Business Day of such month), as the Borrower may select in its relevant notice pursuant to Sections 2.3 or  2.4; provided that 

        (a)   the
Borrower shall not be permitted to select Interest Periods to be in effect at any one time which have expiration dates occurring on more than ten different dates; 

        (b)   if
such Interest Period would otherwise end on a day which is not a Business Day, such Interest Period shall end on the next following Business Day (unless such next
following Business Day is the first Business Day of a calendar month, in which case such Interest Period shall end on the Business Day next preceding such numerically corresponding day); and 

        (c)   no
Interest Period for any Loan may end later than the Stated Maturity Date for such Loan. 

        "Investment" means, relative to any Person, 

        (a)   any
loan, advance or extension of credit made by such Person to any other Person, including the purchase by such Person of any bonds, notes, debentures or other debt
securities of any other Person; 

        (b)   Contingent
Liabilities in favor of any other Person; and 

        (c)   any
Capital Securities held by such Person in any other Person. 

The
amount of any Investment shall be the original principal or capital amount thereof less all returns of principal or equity thereon and shall, if made by the transfer or exchange of property other
than cash, be deemed to have been made in an original principal or capital amount equal to the fair market value of such property at the time of such Investment. 

        "ISP Rules" is defined in Section 10.9. 

        "Issuance Request" means a Letter of Credit request and certificate duly executed by an Authorized Officer of the Borrower, substantially
in the form of Exhibit B-2 hereto. 

        "Issuer" means Credit Suisse in its capacity as Issuer of the Letters of Credit and/or, at the request of Credit Suisse and with the
Borrower's consent (not to be unreasonably withheld or delayed), another Lender or an Affiliate of a Lender that has agreed to issue one or more Letters of Credit hereunder or any Lender or an
Affiliate of a Lender that has an agreement with any Non-Lender Issuer to issue Letters of Credit for the account of the Borrower and its Subsidiaries. 

        "Lead Arrangers" is defined in the preamble. 

        "Lehman" is defined in the preamble. 

13

   
        "Lender Assignment Agreement" means an assignment agreement substantially in the form of  Exhibit D
hereto. 

        "Lenders" is defined in the preamble. 

        "Lender's Environmental Liability" means any and all losses, liabilities, obligations, penalties, claims, litigation, demands, defenses,
costs, judgments, suits, proceedings, damages (including consequential damages), reasonable disbursements or expenses of any kind or nature whatsoever, whether or not based on strict liability
(including reasonable attorneys' fees at trial and appellate levels; reasonable experts' fees and disbursements and expenses incurred in investigating, defending against or prosecuting any litigation,
matter, claim or proceeding; and reasonable consultant fees, disbursements and expenses) which may at any time be imposed upon, incurred by or asserted or awarded against the Administrative Agent, any
Lender or any Issuer or any of such Person's Affiliates, shareholders, directors, officers, employees, and agents in connection with or arising from: 

        (a)   the
actual or alleged presence or Release of any Hazardous Material at, from, on, in, under or affecting all or any portion of any property of the Borrower or any of its
Subsidiaries, the groundwater thereunder, or to the extent resulting from activities of the Borrower or any of its Subsidiaries or any of their respective predecessors, any surrounding areas thereof; 

        (b)   any
misrepresentation, inaccuracy or breach of any warranty, contained or referred to in Section 6.12 or the
breach of any covenant in Section 7.1.6; 

        (c)   any
actual or alleged material violation by the Borrower or any of its Subsidiaries of any Environmental Laws; or 

        (d)   the
imposition of any lien for damages caused by or for the recovery of any costs for the cleanup, Release or threatened Release of Hazardous Material by the Borrower or
any of its Subsidiaries, or in connection with any property owned or operated at any time by the Borrower or any of its Subsidiaries. 

        "Letter of Credit" is defined in Section 2.1.2.  

        "Letter of Credit Commitment" means the Issuer's obligation to issue Letters of Credit pursuant to  clause (a)
 of Section 2.1.2.

        "Letter of Credit Commitment Amount" means, on any date, a maximum amount of $20,000,000, as such amount may be permanently reduced from
time to time pursuant to Section 2.2.

        "Letter of Credit Outstandings" means, on any date, an amount equal to the sum of (a) the then aggregate amount which is undrawn
and available under all issued and outstanding Letters of Credit, and (b) the then aggregate amount of all unpaid and outstanding Reimbursement Obligations. 

        "Leverage Ratio" means, as of the last day of any Fiscal Quarter, the ratio of (a) Total Debt outstanding on the last day of such
Fiscal Quarter to (b) EBITDA computed for the period consisting of such Fiscal Quarter and each of the three immediately preceding Fiscal Quarters. 

        "LIBO Rate" means, with respect to any LIBO Rate Loans for any Interest Period, the rate per annum determined by the Administrative Agent
at approximately 11:00 a.m. (London time) on the date that is two Business Days prior to the beginning of the relevant Interest Period by reference to the British Bankers' Association Interest
Settlement Rates for deposits in Dollars (as set forth by the Bloomberg Information Service or any successor thereto or any other service selected by the Administrative Agent which has been nominated
by the British Bankers' Association as an authorized information vendor for the purpose of displaying such rates) for a period equal to such Interest Period;  provided that, to the extent that an
interest rate is not ascertainable pursuant to the foregoing provisions of this definition, the "LIBO Rate" shall
be the interest rate per annum determined by the Administrative Agent to be the average of the rates per annum at which deposits in Dollars are offered 

14

 

for
such relevant Interest Period to major banks in the London interbank market in London, England by the Administrative Agent at approximately 11:00 a.m. (London time) on the date that is two
Business Days prior to the beginning of such Interest Period. 

        "LIBO Rate Loan" means a Loan bearing interest, at all times during an Interest Period applicable to such Loan, at a rate of interest
determined by reference to the LIBO Rate (Reserve Adjusted). 

        "LIBO Rate (Reserve Adjusted)" means, relative to any Loan to be made, continued or maintained as, or converted into, a LIBO Rate Loan for
any Interest Period, a rate per annum determined pursuant to the following formula: 

	

LIBO Rate

(Reserve Adjusted)	
 	

=	
 	

LIBO Rate
 1.00 – LIBOR Reserve Percentage

The
LIBO Rate (Reserve Adjusted) for any Interest Period for LIBO Rate Loans will be determined by the Administrative Agent on the basis of the LIBOR Reserve Percentage in effect two Business Days
before the first day of such Interest Period. 

        "LIBOR Office" means the office of a Lender designated as its "LIBOR Office" on  Schedule II hereto or in a Lender Assignment Agreement, or such other office
designated from time to time by notice from such Lender to the
Borrower and the Administrative Agent, whether or not outside the United States, which shall be making or maintaining the LIBO Rate Loans of such Lender. 

        "LIBOR Reserve Percentage" means, relative to any Interest Period for LIBO Rate Loans, the reserve percentage (expressed as a decimal)
equal to the maximum aggregate reserve requirements (including all basic, emergency, supplemental, marginal and other reserves and taking into account any transitional adjustments or other scheduled
changes in reserve requirements) specified under regulations issued from time to time by the F.R.S. Board and then applicable to assets or liabilities consisting of or including "Eurocurrency
Liabilities", as currently defined in Regulation D of the F.R.S. Board, having a term approximately equal or comparable to such Interest Period. 

        "Lien" means any security interest, mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or
otherwise), charge against or interest in property, or other priority or preferential arrangement of any kind or nature whatsoever, in each case to secure payment of a debt or performance of an
obligation. 

        "Loan" means, as the context may require, a Revolving Loan, a Term Loan or a Swing Line Loan of any type. 

        "Loan Documents" means, collectively, this Agreement, the Notes, the Letters of Credit, each Fee Letter, each Guaranty, each Security
Agreement, each Mortgage, the Affirmation and Consent, each other agreement pursuant to which the Administrative Agent is granted a Lien to secure the Obligations and each other agreement,
certificate, document or instrument delivered in connection with any Loan Document, whether or not specifically mentioned herein or therein; provided that for purposes of any agreement pursuant to
which the Administrative Agent is granted a Lien to secure the Obligations, the term "Loan Document" shall include each Rate Protection Agreement. 

        "Material Adverse Effect" means a material adverse effect on (a) the condition (financial or otherwise), business, operations,
assets, liabilities (contingent or otherwise) or properties of the Borrower and its Subsidiaries taken as a whole, (b) the rights and remedies of any Secured Party under the Loan Documents
taken as a whole or (c) the ability of Parent, the Borrower or any Significant Subsidiary to perform its Obligations under any Loan Document. 

15

 

        "Monitoring Agreement" means the Monitoring and Management Services Agreement, dated as of the Original Closing Date, among Parent, the
Borrower and the Sponsors, as amended, supplemented, amended and restated or otherwise modified from time to time. 

        "Monitoring Agreement Buyout Payment" means the payment of not more than $4,000,000 to the Sponsors in connection with the termination of
the Monitoring Agreement. 

        "Moody's" means Moody's Investors Service, Inc. 

        "Mortgage" means an agreement, a mortgage, deed of trust or any other document creating or evidencing a Lien on Mortgaged Property
executed, acknowledged and delivered by each Obligor that is the owner of or holder of interest in Mortgaged Property in favor of the Administrative Agent for the benefit of the Secured Parties
pursuant to the requirements of this Agreement under which a Lien is granted on the real property and fixtures described therein, in each case in form and substance reasonably satisfactory to the Lead
Arrangers and as amended, supplemented, amended and restated or otherwise modified from time to time. 

        "Mortgaged Property" means (a) all real property owned by any Obligor on the Amendment Effective Date with a fair market value of
at least $1,000,000 (which properties owned as of the Amendment Effective Date are described in Item 6.9(b) of the Disclosure Schedule) and (b) all other real property, if any, which shall be
subject to a Mortgage delivered pursuant to Section 7.1.8.

        "Net Casualty Proceeds" means, with respect to any Casualty Event, the amount of any insurance proceeds or condemnation awards (net of any
taxes actually paid or estimated by the Borrower to be payable in cash) received by the Borrower or any of its Subsidiaries in connection with such Casualty Event (net of all reasonable collection
expenses thereof), but excluding any proceeds or awards required to be paid to a creditor (other than the Lenders) which holds a Lien permitted by  Section 7.2.3 on the property which is the subject
of such Casualty Event; provided that if the
amount of any estimated taxes exceeds the amount of taxes actually required to be paid in cash in respect of such Casualty Event within 12 months of such Casualty Event, the aggregate amount of
such excess shall constitute Net Casualty Proceeds. 

        "Net Debt Proceeds" means, with respect to each of (a) the incurrence, sale or issuance by the Borrower or any of its Subsidiaries
after the Amendment Effective Date of any Indebtedness which is not expressly permitted by Section 7.2.2, or (b) the issuance by the
Borrower of any of its Subsidiaries of preferred stock (other than preferred stock that does not mature and is not redeemable at the option of the holder prior to at least six months after the latest
Stated Maturity Date for Term Loans), the excess of (x) the gross cash proceeds actually received by such Person from such incurrence, sale or issuance,  less (y) all reasonable arranging or
underwriting fees and commissions, and all legal, investment banking, brokerage and accounting and other
professional fees, sales commissions and disbursements and other reasonable closing costs and expenses, in each case, actually incurred and paid in cash in connection with such incurrence, sale or
issuance. 

        "Net Disposition Proceeds" means the gross cash proceeds actually received by the Borrower or its U.S. Subsidiaries from any Disposition
pursuant to clauses (c) or (e) of  Section 7.2.10 and any cash payment actually received in
respect of promissory notes or other non-cash consideration delivered to the
Borrower or its U.S. Subsidiaries in respect of such specified Dispositions, minus the sum of (a) all reasonable legal, investment banking,
brokerage and accounting fees and expenses incurred in connection with such Disposition, (b) all reasonable expenses to prepare such asset for sale and all transportation costs in connection
with such sale, (c) all taxes actually paid or estimated by the Borrower to be payable in cash within the next 12 months in connection with such Disposition, (d) payments made by
the Borrower or its U.S. Subsidiaries to retire Indebtedness (other than the Credit Extensions) where payment of such Indebtedness is required in connection with such Disposition and (e) the
amount of any reserves established by the Borrower or any of the U.S. Subsidiaries to fund 

16

 

contingent
liabilities reasonably estimated to be payable during the 12 month period following such event that such Person's chief financial officer determined in good faith are directly
attributable to such event; provided that if the amount of any estimated taxes pursuant to  clause (c) exceeds the amount of taxes actually required to
be paid in cash in respect of such Disposition or the amount of any estimated
reserves pursuant to clause (e) above exceeds the amount of reserves actually required to be paid in cash in respect of such Disposition in each
case within 12 months of such Disposition, the aggregate amount of such excess shall constitute Net Disposition Proceeds. 

        "Net Income" means, for any period, the aggregate of all amounts (exclusive of all amounts in respect of any extraordinary gains or
losses) which would be included as net income on the consolidated financial statements of the Borrower and its Subsidiaries for such period. 

        "New Initial Term Loans" is defined in the second recital. 

        "Non-Excluded Taxes" means any Taxes imposed with respect to any Credit Party arising from or in respect of any payment made
or to be made, or income derived from or otherwise imposed with respect to any Loan Document, other than (i) Taxes (including franchise taxes and branch profits taxes) imposed on or measured by
net income, net profits, or overall gross receipts (or any minimum Taxes imposed in lieu thereof) that are imposed by any Governmental Authority under the laws of which such Credit Party is
incorporated or organized or in which it maintains an office or (ii) Taxes not described in clause (i) that are imposed by reason of any connection between the jurisdiction imposing such
Tax and such Credit Party (other than a connection arising merely on account of its being a party to, performing or receiving a payment under, or enforcing its rights with respect to, this Agreement). 

        "Non-Lender Issuer" is defined in Section 2.6.6.

        "Non-U.S. Credit Party" means any Credit Party that is not a "United States person", as defined under
Section 7701(a)(30) of the Code. 

        "Note" means, as the context may require, a Revolving Note, a Term Note or a Swing Line Note. 

        "Obligations" means all obligations (monetary or otherwise, whether absolute or contingent, matured or unmatured) of the Borrower and each
other Obligor arising under or in connection with a Loan Document or a Rate Protection Agreement, including Reimbursement Obligations and the principal of and interest (including interest accruing
during the pendency of any proceeding of the type described in Section 8.1.9, whether or not allowed in such proceeding) on the Loans. 

        "Obligor" means, as the context may require, Parent, the Borrower and each other Person (other than a Secured Party) obligated under any
Loan Document. 

        "Organic Document" means, relative to any Obligor, as applicable, its certificate of incorporation, by-laws, certificate of
partnership, partnership agreement, certificate of formation, limited liability agreement, operating agreement and all shareholder agreements, voting trusts and similar arrangements applicable to any
of such Obligor's Capital Securities. 

        "Original Closing Date" means August 15, 2003. 

        "Other Taxes" means any and all stamp, documentary or similar excise Taxes or levies that arise on account of any payment made or required
to be made under any Loan Document or from the execution, delivery, registration, recording or enforcement of any Loan Document. 

        "Parent" means Reddy Ice Holdings, Inc., a Delaware corporation. 

        "Parent Guaranty and Pledge Agreement" means the Parent Guaranty and Pledge Agreement, as amended and restated on the Amendment Effective
Date, executed and delivered by an Authorized Officer of Parent pursuant to the terms of the Existing Credit Agreement, substantially in the form of 

17

 

 Exhibit F hereto, as amended, supplemented, amended and restated or otherwise modified from time to time. 

        "Parent Notes" mean the Reddy Ice Holdings, Inc. 10.5% Senior Discount Notes due 2012, issued by Parent on October 27, 2004. 

        "Parent Notes Consent" is defined in the third recital. 

        "Participant" is defined in clause (d) of  Section 10.11.

        "Participating Issuer" is defined in Section 2.6.6. 

        "Patent Security Agreement" means any Patent Security Agreement executed and delivered by any Obligor, in substantially the form of
Exhibit A to any Security Agreement, as amended, supplemented, amended and restated or otherwise modified from time to time. 

        "Patriot Act" is defined in Section 10.17.

        "PBGC" means the Pension Benefit Guaranty Corporation and any Person succeeding to any or all of its functions under ERISA. 

        "Pension Plan" means a "pension plan", as such term is defined in Section 3(2) of ERISA, which is subject to Title IV of ERISA
(other than a multiemployer plan as defined in Section 4001(a)(3) of ERISA), and to which the Borrower or any corporation, trade or business that is, along with the Borrower, a member of a
Controlled Group, may have liability, including any liability by reason of having been a substantial employer within the meaning of Section 4063 of ERISA at any time during the preceding five
years, or by reason of being deemed to be a contributing sponsor under Section 4069 of ERISA. 

        "Percentage" means, as the context may require, any Lender's Revolving Loan Percentage or Term Percentage. 

        "Permitted Acquisition" means an acquisition (whether pursuant to an acquisition of Capital Securities, assets or otherwise) by the
Borrower or any Subsidiary of a business, a line of business or an operating lease from any Person in which the following conditions are satisfied: 

        (a)   immediately
before and after giving effect to such acquisition no Default shall have occurred and be continuing or would result therefrom (including under  Section 7.2.1); 

        (b)   the
Borrower shall have delivered to the Administrative Agent a Compliance Certificate for the period of the most recently completed four full Fiscal Quarters
immediately preceding such acquisition (prepared in good faith and in a manner and using such methodology which is consistent with the most recent financial statements delivered pursuant to  Section 7.1.1) giving pro forma effect to the consummation of such acquisition and evidencing
compliance with the covenants set forth in Section 7.2.4 for the immediately preceding test date; 

        (c)   if
such acquisition is being made with Cumulative Distributable Cash, the Borrower shall have delivered to the Administrative Agent a certificate certifying the amount
of Cumulative Distributable Cash immediately before and after giving effect to such acquisition; and 

        (d)   the
Revolving Loan Commitment Amount less the sum of (i) the amount of Letter of Credit Outstandings and
(ii) the aggregate outstanding principal amount of Revolving Loans and Swing line Loans on the date such acquisition is consummated shall be at least $5,000,000. 

        "Permitted Holders" means (a) Trimaran Fund Management, L.L.C., Trimaran Fund II, L.L.C., Trimaran Parallel Fund II, L.P., Trimaran
Capital, L.L.C., CIBC Employee Private Equity Fund (Trimaran) Partners and CIBC MB Inc., (b) Bear Stearns Merchant Capital II, L.P., Bear Stearns Merchant Banking Partners II, L.P., Bear
Stearns Merchant Banking Investors II, L.P., Bear Stearns 

18

 

MB-PSERS
II, L.P., The BSC Employee Fund III, L.P. and the BSC Employee Fund IV, L.P., (c) any controlled Affiliate of any Person referred to in clauses
(a) or (b) above that is organized by such Person primarily for the purpose of making equity or debt investments
in one or more Persons, (d) any officer or director of Parent or the Borrower who owns common stock of Parent immediately after giving effect to the Merger and (e) any Related Party.
Except for a Permitted Holder specifically identified by name, in determining whether Capital Securities or Voting Securities are owned by a Permitted Holder, only Capital Securities and Voting
Securities acquired by a Permitted Holder in its described capacity will be treated as "beneficially owned" by such Permitted Holder. 

        "Person" means any natural person, corporation, limited liability company, partnership, joint venture, association, trust or
unincorporated organization, Governmental Authority or any other legal entity, whether acting in an individual, fiduciary or other capacity. 

        "Planned IPO" is defined in the third recital. 

        "Pledged Subsidiary" means each Subsidiary in respect of which the Administrative Agent has been granted a security interest in or a
pledge of (a) any of the Capital Securities of such Subsidiary or (b) any intercompany notes of such Subsidiary owing to the Borrower or another Subsidiary. 

        "Primary Syndication" means the period commencing on or prior to the Amendment Effective Date and ending on the earlier of (a) the
date that is 15 days following the Amendment Effective Date and (b) the date that the Lead Arrangers have declared the primary syndication of the Credit Extensions to have ended. 

        "Proceeds Account" is defined in clause (d) of  Section 3.1.1. 

        "Quarterly Payment Date" means the last Business Day of March, June, September and December. 

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        "Rate Protection Agreement" means, collectively, any interest rate swap, cap, collar or similar agreement entered into by the Borrower or
any of its Subsidiaries under which the counterparty of such agreement is (or at the time such agreement was entered into, was) a Lender or an Affiliate of a Lender. 

        "Reference Period" means, as at any date, the period commencing on July 1, 2005 and ending on the last day of the most recent
Fiscal Quarter for which a Compliance Certificate pursuant to clause (c) of Section 7.1.1  has been delivered by the Borrower prior to such date;
provided that Interest Expense for the Fiscal Quarter ending
September 30, 2005 shall be calculated to give pro forma effect to the Transaction as though it had occurred on July 1, 2005. 

        "Refinancing" is defined in the third recital. 

        "Refunded Swing Line Loans" is defined in clause (b) of  Section 2.3.2. 

        "Register" is defined in clause (a) of  Section 2.7. 

        "Reimbursement Obligation" is defined in Section 2.6.3. 

        "Related Party" means (a) any controlling stockholder, controlling member, general partner, majority owned Subsidiary, or spouse or
immediate family member (in the case of an individual) of any Permitted Holder, (b) any estate, trust, corporation, partnership or other entity, the beneficiaries, stockholders, partners,
owners or Persons holding a controlling interest of which consist solely of one or more Permitted Holders and/or such other Persons referred to in  clause (a), or (c) any executor,
administrator, trustee, manager, director or other similar fiduciary of any Person referred to in the
immediately preceding clause (b) acting solely in such capacity. 

        "Release" means any release, spilling, emitting, leaking, pumping, pouring, injecting, depositing, disposal, discharge, dispersal,
leaching, dumping or migration into or through the indoor or outdoor environment. 

        "Replacement Lender" is defined in clause (g) of  Section 10.11. 

        "Replacement Notice" is defined in Section 4.10. 

        "Required Lenders" means, at any time, Lenders holding more than 50% of the Total Exposure Amount. 

        "Resource Conservation and Recovery Act" means the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901,  et seq., as
amended. 

        "Restricted Payment" means the declaration or payment of any dividend (other than dividends payable solely in Capital Securities of the
Borrower or any Subsidiary) on, or the making of any payment or distribution on account of, or setting apart assets for a sinking or other analogous fund for, the purchase, redemption, defeasance,
retirement or other acquisition of any class of Capital Securities of the Borrower or any Subsidiary or any warrants or options to purchase any such Capital Securities of the Borrower or such
Subsidiary, whether now or hereafter outstanding, or the making of any other distribution in respect thereof, either directly or indirectly, whether in cash or property, obligations of the Borrower or
any Subsidiary or otherwise (other than distributions payable solely in Capital Securities of the Borrower or any of its Subsidiaries). 

        "Revolving Loan Commitment" means, relative to any Lender, such Lender's obligation (if any) to make Revolving Loans pursuant to  clause (a) of Section 2.1.1. 

        "Revolving Loan Commitment Amount" means, on any date, $60,000,000, as such amount may be reduced from time to time pursuant to  Section 2.2. 

        "Revolving Loan Commitment Termination Date" means the earliest of 

20

 

        (a)   the
Stated Maturity Date; 

        (b)   the
date on which the Revolving Loan Commitment Amount is terminated in full or reduced to zero pursuant to the terms of this Agreement; and 

        (c)   the
date on which any Commitment Termination Event occurs. 

        Upon
the occurrence of any event described above, the Revolving Loan Commitments shall terminate automatically and without any further action. 

        "Revolving Loan Lender" is defined in clause (a) of  Section 2.1.1. 

        "Revolving Loan Percentage" means, relative to any Lender, the applicable percentage relating to Revolving Loans set forth opposite its
name on Schedule II hereto under the Revolving Loan Commitment column or set forth in a Lender Assignment Agreement under the Revolving Loan
Commitment column, as such percentage may be adjusted from time to time pursuant to Lender Assignment Agreements executed by such Lender and its assignee Lender and delivered pursuant to  Section 10.11. A Lender shall not have any Revolving Loan Commitment if its percentage under the Revolving Loan Commitment column is zero. 

        "Revolving Loans" is defined in clause (a) of  Section 2.1.1. 

        "Revolving Note" means a promissory note of the Borrower payable to any Revolving Loan Lender, in the form of  Exhibit A-1 hereto (as such promissory note may be
amended, endorsed or otherwise modified from time to time), evidencing the
aggregate Indebtedness of the Borrower to such Revolving Loan Lender resulting from outstanding Revolving Loans, and also means all other promissory notes accepted from time to time in substitution
therefor or renewal thereof. 

        "S&P" means Standard & Poor's Rating Services, a division of The McGraw-Hill Companies, Inc. 

        "SEC" means the Securities and Exchange Commission. 

        "Secured Parties" means, collectively, the Lenders, the Issuers, the Administrative Agent, the Syndication Agent, each counterparty to a
Rate Protection Agreement that is (or at the time such Rate Protection Agreement was entered into, was) a Lender or an Affiliate thereof, and, in each case, each of their respective successors,
transferees and assigns. 

        "Security Agreement" means, as the context may require, the Borrower Pledge and Security Agreement and the Subsidiary Pledge and Security
Agreement. 

        "Significant Subsidiary" means each Subsidiary of the Borrower that (a) accounted for at least 3% of the consolidated gross
revenues of the Borrower and its Subsidiaries or (b) has assets which represent at least 3% of the consolidated gross assets of the Borrower and its Subsidiaries, in each case, as of the last
day of the most recently completed Fiscal Quarter with respect to which, pursuant to clauses (a) and  (b) of Section 7.1.1, financial statements have been, or are required to have been,
delivered by the Borrower on or before the date as of which any such determination is made, as reflected in such financial statements. 

        "Solvent" means, with respect to any Person and its Subsidiaries on a particular date, that on such date (a) the fair value of the
property of such Person and its Subsidiaries on a consolidated basis is greater than the total amount of liabilities, including contingent liabilities, of such Person and its Subsidiaries on a
consolidated basis, (b) the present fair salable value of the assets of such Person and its Subsidiaries on a consolidated basis is not less than the amount that will be required to pay the
probable liability of such Person and its Subsidiaries on a consolidated basis on its debts as they become absolute and matured, (c) such Person does not intend to, and does not believe that it
or its Subsidiaries will, incur debts or liabilities beyond the ability of such Person and its Subsidiaries to pay as such debts and liabilities mature, and (d) such Person and its Subsidiaries
on a consolidated basis 

21

 

are
not engaged in a business or a transaction, and such Person and its Subsidiaries on a consolidated basis are not about to engage in a business or a transaction, for which the property of such
Person and its Subsidiaries on a consolidated basis would constitute an unreasonably small capital. The amount of Contingent Liabilities at any time shall be computed as the amount that, in light of
all the facts and circumstances existing at such time, can reasonably be expected to become an actual or matured liability. 

        "Specified Asset Sales" means a Disposition of any of the assets and/or Capital Securities of Cassco Ice and Cold Storage Inc.
and/or Southern Bottled Water, Inc. in one transaction or any series of transactions. 

        "Sponsors" means, collectively, Trimaran Fund Management, L.L.C., Bear Stearns Merchant Manager II, LLC and their respective successors
and Affiliates. 

        "Stated Amount" means, on any date and with respect to a particular Letter of Credit, the total amount then available to be drawn under
such Letter of Credit. 

        "Stated Expiry Date" is defined in Section 2.6. 

        "Stated Maturity Date" means (a) with respect to all Initial Term Loans, the seventh anniversary of the Amendment Effective Date,
(b) with respect to all Revolving Loans and Swing Line Loans, the fifth anniversary of the Amendment Effective Date and (c) in the case of any Incremental Term Loan, the date set forth
in the agreement pursuant to which the applicable Lenders agreed to provide the Incremental Term Commitment in respect of such Incremental Term Loan. 

        "Subordinated Debt" means (a) the Indebtedness evidenced by the Subordinated Notes and (b) any other unsecured Indebtedness
of any Obligor subordinated in right of payment to the Obligations pursuant to documentation containing redemption and other prepayment events, maturities, amortization schedules, covenants, events of
default, remedies, acceleration rights, subordination provisions and other material terms either (i) substantially similar to the Subordinated Notes as in effect on the Original Closing Date
(other than interest rates, redemption premiums and call periods) or more favorable to the Lenders or (ii) otherwise satisfactory to the Required Lenders. 

        "Subordinated Debt Documents" means the Subordinated Notes and each of the loan agreements, indentures, note purchase agreements,
promissory notes, guarantees, and other instruments and agreements (including registration rights agreements) evidencing the terms of Subordinated Debt, as amended, supplemented, amended and restated
or otherwise modified in accordance with Section 7.2.11. 

        "Subordinated Debt Prepayment" means (a) the making of any payment or prepayment of principal of, or premium or interest on, the
Subordinated Debt (or any refinancings thereof permitted hereunder) (i) other than the scheduled date for payment of principal or interest set forth in the applicable Subordinated Debt
Documents, or (ii) which would violate the terms of the applicable Subordinated Debt Documents, (b) the redemption, retirement, purchase, defeasance or other acquisition of the
Subordinated Debt (or any refinancings thereof permitted hereunder) other than as required by the terms of the applicable Subordinated Debt Documents or (c) making any deposit (including the
payment of amounts into a sinking fund or other similar fund) for any of the foregoing purposes. 

        "Subordinated Notes" means the Borrower's 87/8% senior subordinated notes due 2011, as amended, supplemented, amended and
restated or otherwise modified from time to time. 

        "Subordinated Note Payment" is defined in the third recital. 

        "Subordination Provisions" is defined in Section 8.1.11. 

22

 

        "Subsidiary" means, with respect to any Person, any other Person of which more than 50% of the outstanding Voting Securities of such other
Person (irrespective of whether at the time Capital Securities of any other class or classes of such other Person shall or might have voting power upon the occurrence of any contingency) is at the
time directly or indirectly owned or controlled by such Person, by such Person and one or more other Subsidiaries of such Person, or by one or more other Subsidiaries of such Person. Unless the
context otherwise specifically requires, the term "Subsidiary" shall be a reference to a Subsidiary of the Borrower. 

        "Subsidiary Guarantor" means each Subsidiary that has executed and delivered to the Administrative Agent the Subsidiary Guaranty. 

        "Subsidiary Guaranty" means the subsidiary guaranty, dated as of the Original Closing Date, executed and delivered by an Authorized
Officer of each U.S. Subsidiary pursuant to the terms of the Existing Credit Agreement, a conformed copy of which is attached as Exhibit G  hereto, as amended, supplemented, amended and restated or
otherwise modified from time to time. 

        "Subsidiary Pledge and Security Agreement" means the Pledge and Security Agreement, dated as of the Original Closing Date, executed and
delivered by each U.S. Subsidiary of the Borrower pursuant to the terms of the Existing Credit Agreement, a conformed copy of which is attached as of Exhibit I  hereto, together with any
supplemental Foreign Pledge Agreements delivered pursuant to the terms of this Agreement after the Original Closing Date, in each case as amended,
supplemented, amended and restated or otherwise modified from time to time. 

        "Substitute Lender" is defined in Section 4.10. 

        "Survey" shall mean a survey of any Mortgaged Property (and all improvements thereon) (a) prepared by a surveyor or engineer
licensed to perform surveys in the state where such Mortgaged Property is located, (b) dated (or redated) not earlier than six months prior to the date of delivery thereof unless there shall
have occurred within six months prior to such date of delivery any exterior construction on the site of such Mortgaged Property, in which event such survey shall be dated (or redated) after the
completion of such construction or if such construction shall not have been completed as of such date of delivery, not earlier than 20 days prior to such date of delivery, (c) certified
by the surveyor (in a manner reasonably acceptable to the Administrative Agent) to the Administrative Agent and the Title Company, (d) complying in all respects with the minimum detail
requirements of the American Land Title Association as such requirements are in effect on the date of preparation of such survey and
(e) sufficient for the company issuing a Title Policy to remove all standard survey exceptions from the title insurance policy (or commitment) relating to such Mortgaged Property and issue the
endorsements of the type required by clause (c) of Section 5.1.13 or such other survey as
is in form and substance reasonably acceptable to the Administrative Agent. 

        "Swing Line Lender" means, subject to the terms of this Agreement, Credit Suisse. 

        "Swing Line Loans" is defined in clause (b) of  Section 2.1.1. 

        "Swing Line Loan Commitment" is defined in clause (b) of  Section 2.1.1. 

        "Swing Line Loan Commitment Amount" means, on any date, $10,000,000, as such amount may be reduced from time to time pursuant to  Section 2.2. 

        "Swing Line Note" means a promissory note of the Borrower payable to the Swing Line Lender, in the form of  Exhibit A-3 hereto (as such promissory note may be
amended, endorsed or otherwise modified from time to time), evidencing the
aggregate Indebtedness of the Borrower to the Swing Line Lender resulting from outstanding Swing Line Loans, and also means all other promissory notes accepted from time to time in substitution
therefor or renewal thereof. 

        "Syndication Agent" is defined in the preamble. 

23

 

        "Synthetic Lease" means, as applied to any Person, any lease (including leases that may be terminated by the lessee at any time) of any
property (whether real, personal or mixed) (a) that is not a capital lease in accordance with GAAP and (b) in respect of which the lessee retains or obtains ownership of the property so
leased for federal income tax purposes, other than any such lease under which that Person is the lessor. 

        "Tax Returns" means any return, report or similar statement required to be filed with respect to any Tax (including any attached
schedules) including any informational return, claim for refund, amended return or declaration of estimated Tax. 

        "Tax Sharing Agreement" means the tax sharing agreement, dated as of the Original Closing Date, among Parent and the Borrower, in form and
substance reasonably satisfactory to the Lead Arrangers, as amended, supplemented, amended and restated or otherwise modified from time to time. 

        "Taxes" means all income, stamp or other taxes, duties, levies, imposts, charges, assessments, fees, deductions or withholdings, now or
hereafter imposed, levied, collected, withheld or assessed by any Governmental Authority, and all interest, penalties or similar liabilities with respect thereto. 

        "Term Loans" means, collectively, the Initial Term Loans and any Incremental Term Loans. 

        "Term Note" means a promissory note of the Borrower payable to any Lender, in the form of  Exhibit A-2 hereto (as such promissory note may be amended, endorsed or
otherwise modified from time to time), evidencing the
aggregate Indebtedness of the Borrower to such Lender resulting from outstanding Term Loans, and also means all other promissory notes accepted from time to time in substitution therefor or renewal
thereof. 

        "Term Percentage" means, relative to any Lender, the applicable percentage relating to Term Loans set forth opposite its name on  Schedule II hereto under the
Initial Term Loan Commitment column or Incremental Term Loan Commitment column or set forth in a Lender Assignment
Agreement under the Initial Term Loan Commitment column or Incremental Term Loan Commitment column, as such percentage may be adjusted from time to time pursuant to Lender Assignment Agreements
executed by such Lender and its assignee Lender and delivered pursuant to Section 10.11. 

        "Termination Date" means the date on which all Obligations have been paid in full in cash, all Letters of Credit have been terminated or
expired (or been Cash Collateralized), all Rate Protection Agreements have been terminated and all Commitments shall have terminated; provided, that as
used in this Agreement only, the occurrence of the "Termination Date" shall not require the termination of Rate Protection Agreements. 

        "Title Policy" means a mortgagee's title insurance policy or commitment to issue such policy in favor of the Administrative Agent for the
benefit of the Secured Parties in amounts and in form and substance and issued by insurers, reasonably satisfactory to the Administrative Agent, insuring that title to such property is indefeasible
and that the interests created by the Lien of such Mortgage is a valid first priority Lien on the Mortgaged Property and fixtures described therein. 

        "Total Debt" means, on any date, the outstanding principal amount of all Indebtedness of the Borrower and its Subsidiaries of the type
referred to in clause (a) (which, in the case of the Revolving Loans and Swing Line Loans, shall be deemed to equal the average daily amount of
the Revolving Loans and Swing Line Loans outstanding for the Fiscal Quarter ending on or immediately preceding the date of determination), clause (c)  and clause (g)
, in each case of the definition of "Indebtedness" (exclusive of intercompany Indebtedness between the
Borrower and its Subsidiaries) and, without duplication, any Contingent Liability in respect of any of the foregoing less amounts on deposit in the Proceeds Account on such date. 

24

 

        "Total Exposure Amount" means, on any date of determination (and without duplication), the outstanding principal amount of all Loans, the
aggregate amount of all Letter of Credit Outstandings and the unfunded amount of the Commitments. 

        "Trademark Security Agreement" means any Trademark Security Agreement executed and delivered by any Obligor, in substantially in the form
of Exhibit B to any Security Agreement, as amended, supplemented, amended and restated or otherwise modified from time to time. 

        "Transaction" is defined in the third recital. 

        "Transaction Adjustments" means the fees and expenses incurred in connection with consummating the Transaction, the issuance of the Parent
Notes, the consent solicitation relating to the Parent Notes, the fees, expenses and prepayment penalties and call or tender premiums associated with retirement of Indebtedness (including repurchasing
the Subordinated Notes), management transaction bonuses, the Monitoring Agreement Buyout Payment, and any legal, advisory and other fees and expenses incurred by the Borrower in connection with
consummating the Transaction and such related transactions and with assisting certain shareholders of Parent in conducting a secondary offering of Parent's Capital Securities in conjunction with the
Planned IPO, such Transaction Adjustments in an aggregate amount not to exceed $50,000,000. 

        "Transaction Documents" means, collectively, all agreements furnished pursuant to or in connection with the Planned IPO, in each case as
amended, supplemented, amended and restated or otherwise modified from time to time. 

        "type" means, relative to any Loan, the portion thereof, if any, being maintained as a Base Rate Loan or a LIBO Rate Loan. 

        "UCC" means the Uniform Commercial Code as in effect from time to time in the State of New York; provided  that if, with respect to any Filing Statement or by reason of
any provisions of law, the perfection or the effect of perfection or non-perfection of the security
interests granted to the Administrative Agent pursuant to the applicable Loan Document is governed by the Uniform Commercial Code as in effect in a jurisdiction of the United States other than New
York, then "UCC" means the Uniform Commercial Code as in effect from time to time in such other jurisdiction for purposes of the provisions of each Loan Document and any Filing Statement relating to
such perfection or effect of perfection or non-perfection. 

        "Unaudited Quarterly Financial Statements" is defined in clause (a) of  Section 7.1.1. 

        "United States" or "U.S." means the United States of America, its fifty states and the
District of Columbia. 

        "U.S. Subsidiary" means any Subsidiary that is incorporated or organized under the laws of the United States or a state thereof or the
District of Columbia. 

        "Voting Securities" means, with respect to any Person, Capital Securities of any class or kind ordinarily having the power to vote for the
election of directors, managers or other voting members of the governing body of such Person. 

        "Welfare Plan" means a "welfare plan", as such term is defined in Section 3(1) of ERISA. 

        "wholly owned Subsidiary" means any Subsidiary all of the outstanding Capital Securities of which (other than any director's qualifying
shares or investments by foreign nationals mandated by applicable laws) is owned directly or indirectly by the Borrower. 

        SECTION
1.2.    Use of Defined Terms.    Unless otherwise defined or the context otherwise requires, terms for which
meanings are provided in this Agreement shall have such meanings when used in each other Loan Document and the Disclosure Schedule. 

25

 

        SECTION
1.3.    Cross-References.    Unless otherwise specified, references in a Loan Document to any Article or
Section are references to such Article or Section of such Loan Document, and references in any Article, Section or definition to any clause are references to such clause of such Article, Section or
definition. 

        SECTION
1.4.    Accounting and Financial Determinations.    

        (a)   Unless
otherwise specified, all accounting terms used in each Loan Document shall be interpreted, and all accounting determinations and computations thereunder
(including under Section 7.2.4 and the definitions used in such calculations) shall be made, in accordance with GAAP. Unless otherwise expressly
provided, all financial covenants and defined financial terms shall be computed on a consolidated basis for the Borrower and its Subsidiaries, in each case without duplication. 

        (b)   As
of any date of determination, for purposes of determining the Interest Coverage Ratio and the Leverage Ratio, (and any financial calculations required to be made or
included within such ratios, or required for purposes of preparing any Compliance Certificate to be delivered pursuant to clause (b) of the
definition of "Permitted Acquisition"), the calculation of such ratios and other financial calculations shall include or exclude, as the case may be, the effect of any business, line of business or
operating lease that has been acquired or disposed of by the Borrower or any of its Subsidiaries pursuant to the terms hereof (including through mergers or consolidations) as of such date of
determination, as determined by the Borrower on a pro  forma basis, which determination may
include one-time adjustments or reductions in costs, if any, directly attributable to any such disposition or acquisition, as the case may be, in each case (i) calculated in
accordance with Regulation S-X of the Securities Act of 1933, as amended, for the period of four Fiscal Quarters ended on or immediately prior to the date of determination of any
such ratios and (ii) giving effect to any such acquisition or disposition as if it had occurred on the first day of such four Fiscal Quarter period. 

        (c)   If
the Borrower or any Lead Arranger determines that a change in GAAP has altered the treatment of certain financial data to its detriment under this Agreement, such
party may, by written notice to the Lead Arrangers not later than 60 days after the end of the Fiscal Quarter during which such change in GAAP becomes effective, request renegotiation of the
financial covenants affected by such change. If the Borrower and the Required Lenders have not agreed on revised covenants within thirty days after delivery of such notice, then, for purposes of this
Agreement, GAAP will have the meaning set forth in clause (a) of the definition of "GAAP". 

 
 

ARTICLE II
  
    COMMITMENTS, BORROWING AND ISSUANCE
  PROCEDURES, NOTES AND LETTERS OF CREDIT    
    

        SECTION
2.1.    Commitments.    On the terms and subject to the conditions of this Agreement, the Lenders and the
Issuers severally agree to make Credit Extensions as set forth below. 

        SECTION
2.1.1.    Revolving Loans and Swing Line Loans.    Each of the parties hereto acknowledges and agrees that the
Existing Revolving Loans shall continue as Revolving Loans for all purposes under this Agreement and the Loan Documents. From time to time on any Business Day occurring from and after the Amendment
Effective Date until five Business Days prior to the Revolving Loan Commitment Termination Date, 

        (a)   each
Lender that has a Revolving Loan Commitment (referred to as a "Revolving Loan Lender"), agrees that it will make
loans (relative to such Lender, its "Revolving Loans") to the 

26

 

Borrower
equal to such Lender's Revolving Loan Percentage of the aggregate amount of each Borrowing of the Revolving Loans requested by the Borrower to be made on such day; and 

        (b)   the
Swing Line Lender agrees that it will make loans (its "Swing Line Loans") to the Borrower equal to the principal
amount of the Swing Line Loan requested by the Borrower to be made on such day. The Commitment of the Swing Line Lender described in this clause is herein referred to as its
"Swing Line Loan Commitment". 

On
the terms and subject to the conditions hereof, the Borrower may from time to time borrow, prepay and reborrow Revolving Loans and Swing Line Loans. No Revolving Loan Lender shall be permitted or
required to make any Revolving Loan if, after giving effect thereto, the aggregate outstanding principal amount of all Revolving Loans of such Revolving Loan Lender, together with such Lender's
Revolving Loan Percentage of the aggregate amount of all Swing Line Loans and Letter of Credit Outstandings, would exceed such Lender's Revolving Loan Percentage of the then existing Revolving Loan
Commitment Amount. Furthermore, the Swing Line Lender shall not be permitted or required to make Swing Line Loans if, after giving effect thereto, (i) the aggregate outstanding principal amount
of all Swing Line Loans would exceed the then existing Swing Line Loan Commitment Amount or
(ii) unless otherwise agreed to by the Swing Line Lender, in its sole discretion, the sum of all Swing Line Loans and Revolving Loans made by the Swing Line Lender plus  the Swing Line Lender's
Revolving Loan Percentage of the aggregate amount of Letter of Credit Outstandings would exceed the Swing Line Lender's Revolving Loan Percentage of the
then existing Revolving Loan Commitment Amount. 

        SECTION
2.1.2.    Letters of Credit.    Each of the parties hereto acknowledges and agrees that the Existing Letters
of Credit shall continue as Letters of Credit for all purposes under this Agreement and the Loan Documents. From time to time on any Business Day occurring from and after the Amendment Effective Date
until thirty days prior to the Revolving Loan Commitment Termination Date, the relevant Issuer agrees that it will 

        (a)   issue
one or more standby letters of credit (relative to such Issuer, its "Letter of Credit") for the account of the
Borrower or any Subsidiary Guarantor in the Stated Amount requested by the Borrower on such day; or 

        (b)   extend
the Stated Expiry Date of an existing standby Letter of Credit previously issued hereunder. 

No
Stated Expiry Date shall extend beyond the earlier of (i) five Business Days prior to the Revolving Loan Commitment Termination Date and (ii) unless otherwise agreed to by the Issuer
in its sole discretion, one year from the date of such extension. No Issuer shall be permitted or required to issue any Letter of Credit if, after giving effect thereto, (i) the aggregate
amount of all Letter of Credit Outstandings would exceed the Letter of Credit Commitment Amount or (ii) the sum of the aggregate amount of all Letter of Credit Outstandings  plus the aggregate
principal amount of all Revolving Loans and Swing Line Loans then outstanding would exceed the Revolving Loan Commitment Amount. 

        SECTION
2.1.3.    Initial Term Loans.    

        (a)   Each
Lender party hereto that is owed Existing Term Loans severally agrees to exchange its Existing Term Loans for a like outstanding principal amount of new term loans
on the Amendment Effective Date (relative to such Lender, its "Initial Term Loan"), which exchange shall be deemed to be a voluntary prepayment of such
Lender's Existing Term Loans by the Borrower and the making of an Initial Term Loan pursuant to clause (b) below by such Lender for such amount. 

27

  

        (b) Each Lender with an Initial Term Loan Commitment severally agrees to make Initial Term Loans to the Borrower on the Amendment Effective Date in a principal amount not to exceed its
Initial Term Loan Commitment on the Amendment Effective Date. In the event that the Borrower requests Initial Term Loans in an aggregate amount (the "Aggregate Initial Term
Loan Amount") less than the aggregate of the Lenders' Initial Term Loan Commitments, each such Lender shall make an Initial Term Loan to the Borrower in an amount equal to the
Aggregate Initial Term Loan Amount multiplied by such Lender's Initial Term Loan Percentage. Subject to clause (a) above, on the Amendment
Effective Date the Borrower shall voluntarily prepay all Existing Term Loans from the proceeds of the Initial Term Loans. 

        SECTION
2.1.4.    Incremental Term Loans.    

        (a)
At any time that no Default has occurred and is continuing, the Borrower may notify the Administrative Agent that the Borrower is requesting that, on the terms and subject to the
conditions contained in this Agreement, the Lenders and/or other lenders not then a party to this Agreement provide up to an aggregate amount of $80,000,000 in additional commitments (any such
commitment, an "Incremental Term Loan Commitment") to make incremental term loans (relative to such Lender or other lenders, its
"Incremental Term Loan"); provided that no Incremental Term Loan shall (i) require any scheduled
payment of principal (excluding, for the avoidance of doubt, mandatory prepayments set forth in Section 3.1.1) prior to the Stated Maturity Date
for Initial Term Loans or (ii) have a Stated Maturity Date that is prior to the Stated Maturity Date for Initial Term Loans. Upon receipt of such notice, the Administrative Agent shall use
commercially reasonable efforts to arrange for the Lenders or other Eligible Assignees to provide such Incremental Term Loan Commitments; provided that
nothing contained in this Section or otherwise in this Agreement is intended to commit any Lender or any Agent to provide any portion of any such Incremental Term Loan Commitments. 

        (b)
If and to the extent that any Lenders and/or other lenders agree, in their sole discretion, to provide any such Incremental Term Loan Commitments, on any date on or prior to the
Incremental Term Loan Commitment Termination Date with respect to any Incremental Term Loan Commitment, each Lender that has a Percentage in excess of zero of such Incremental Term Loan Commitment
will make an Incremental Term Loan to the Borrower equal to such Lender's Percentage of the aggregate Borrowing or Borrowings of Incremental Term Loans requested by the Borrower to be made on such
date pursuant to such Incremental Term Loan Commitment. 

        (c)
In furtherance thereof, the Borrower and the Administrative Agent shall make conforming amendments to the provisions of this Agreement to provide for such Incremental Term Loans on
the terms agreed between the Borrower and the Lenders that agreed to provide the Incremental Term Loan Commitments pursuant to which such Incremental Term Loans were made and the Borrower
shall execute and deliver any additional Notes, other amendments or modifications to any Loan Document, and any other certificates, consents or legal opinions as the Administrative Agent may
reasonably request. 

        SECTION
2.1.5.    Assignment and Reallocation of Existing Loans and Commitments.    On the Amendment Effective Date,
each Existing Lender that had a commitment to make Existing Revolving Loans (an "Existing Revolving Loan Lender") hereby irrevocably sells, transfers,
conveys and assigns, without recourse, representation or warranty (except as expressly set forth herein), to each other Revolving Loan Lender, and each such Revolving Loan Lender hereby irrevocably
purchases from such Existing Revolving Loan Lender, a portion of the rights and obligations of such Existing Revolving Loan Lender under the Existing Credit Agreement and each other Loan Document in
respect of such Existing Revolving Loan Lender's Existing Revolving Loans and Revolving Loan Commitment under (and as defined in) the Existing Credit Agreement, including participating interests in
Letter of Credit Outstandings under (and as defined in) the Existing Credit Agreement, such that, after giving effect to the foregoing assignment and delegation, each Revolving Loan Lender's
Percentages of the Revolving 

28

 

Loan
Commitment and portion of the Revolving Loans will be as set forth opposite such Person's name on Schedule II hereto. 

        (a)   Each
Existing Revolving Loan Lender hereby represents and warrants to each Revolving Loan Lender that, immediately before giving effect to the provisions of this
Section, (i) such Existing Revolving Loan Lender is the legal and beneficial owner of the portion of its rights and obligations in respect of its Existing Revolving Loans being assigned to each
Revolving Loan Lender as set forth above and (ii) such rights and obligations being assigned and sold by such Existing Revolving Loan Lender are free and clear of any adverse claim or
encumbrance created by such Existing Revolving Loan Lender. 

        (b)   Each
of the Revolving Loan Lenders hereby acknowledges and agrees that (i) other than the representations and warranties contained above, no Existing Revolving
Loan Lender nor the Administrative Agent has made any representations or warranties or assumed any responsibility with respect to (A) any statements, warranties or representations made in or in
connection with this Agreement or the execution, legality, validity, enforceability, genuineness or sufficiency of this Agreement, the Existing Credit Agreement or any other Loan Document or
(B) the financial condition of any Obligor or the performance by any Obligor of the Obligations; (ii) it has received such information as it has deemed appropriate to make its own credit
analysis and decision to enter into this Agreement; and (iii) it has made and continues to make its own credit decisions in taking or not taking action under this Agreement, independently and
without reliance upon the Administrative Agent or any other Lender. 

        (c)   The
Borrower, each of the Existing Revolving Loan Lenders and the Administrative Agent also agree that each of the Revolving Loan Lenders shall, as of the Amendment
Effective Date, have all of
the rights and interests as a Revolving Loan Lender in respect of the Commitments and Loans purchased and assumed, or retained, by it, to the extent of the rights and obligations so purchased and
assumed, or retained, by it. 

        (d)   Each
Revolving Loan Lender which is purchasing any portion of the Existing Loans shall deliver to the Administrative Agent immediately available funds in the full amount
of the purchase made by it and the Administrative Agent shall, to the extent of the funds so received, disburse such funds to the Existing Revolving Loan Lenders which are making sales and assignments
in the amount of the portions so sold and assigned. 

        SECTION
2.2.    Reductions in Commitment Amounts.    The Commitment Amounts are subject to reduction from time to time
as set forth below. 

        SECTION
2.2.1.    Reductions.    (a) The Borrower may, from time to time on any Business Day occurring after
the Amendment Effective Date, voluntarily reduce the amount of the Revolving Loan Commitment Amount, the Swing Line Loan Commitment Amount or the Letter of Credit Commitment Amount on the Business Day
so specified by the Borrower; provided that all such reductions shall require at least one Business Day's prior notice to the Administrative Agent
(which notice may be telephonic so long as such notice is confirmed in writing within 24 hours thereafter) and be permanent, and any partial reduction of any Commitment Amount shall be in a
minimum amount of $5,000,000 and in an integral multiple of $1,000,000. Any optional or mandatory reduction of the Revolving Loan Commitment Amount pursuant to the terms of this Agreement which
reduces the Revolving Loan Commitment Amount below the sum of (i) the Swing Line Loan Commitment Amount and (ii) the Letter of Credit Commitment Amount shall result in an automatic and
pro rata reduction of the Swing Line Loan Commitment Amount and/or Letter of Credit Commitment Amount (as directed by the Borrower in a notice to the Administrative Agent delivered together with the
notice of such voluntary reduction in the Revolving Loan Commitment Amount) to an aggregate amount not in excess of the Revolving Loan Commitment Amount, as so reduced, without any further action on
the part of the Swing Line Lender or any Issuer. 

29

 

        SECTION
2.2.2.    Mandatory.    Following the prepayment in full of the Term Loans, the Revolving Loan Commitment
Amount shall, without any further action, automatically and permanently be reduced on the date the Term Loans would otherwise have been required to be prepaid pursuant to  clauses (c), (d) or
(e) of  Section 3.1.1 in an amount equal to the amount by which the Term Loans would otherwise be required to be prepaid if Term Loans had been
outstanding. 

        SECTION
2.3.    Borrowing Procedures.    Loans (other than Swing Line Loans) shall be made by the Lenders in
accordance with Section 2.3.1, and Swing Line Loans shall be made by the Swing Line Lender in accordance with  Section 2.3.2. 

        SECTION
2.3.1.    Borrowing Procedure.    In the case of Loans other than Swing Line Loans, by telephonic notice to
the Administrative Agent on or before 12:00 noon on a Business Day (followed (within one Business Day) by the delivery of a confirming Borrowing Request), the Borrower may from time to time
irrevocably request, on the same Business Day in the case of Base Rate Loans or on not less than three Business Days' notice in the case of LIBO Rate Loans, and in either case not more than five
Business Days' notice, that a Borrowing be made, in the case of LIBO Rate Loans, in a minimum amount of $2,000,000 and an integral multiple of $1,000,000, or in the case of Base Rate Loans, in a
minimum amount of $1,000,000 and an integral multiple of $500,000 or, in either case, in the unused amount of the applicable Commitment. On the terms and subject to the conditions of this Agreement,
each Borrowing shall be comprised of the type of Loans, and shall be made on the Business Day, specified in such Borrowing Request. In the case of Loans other than Swing Line Loans, on or before
3:00 p.m. on such Business Day each Lender that has a Commitment to make the Loans being requested shall deposit with the Administrative Agent same day funds in an amount equal to such Lender's
Percentage of the requested Borrowing. Such deposit will be made to an account which the Administrative Agent shall specify from time to time by notice to the Lenders. To the extent funds are received
from the Lenders, the Administrative Agent shall make such funds available to the Borrower by wire transfer to the accounts the Borrower shall have specified in its Borrowing Request. No Lender's
obligation to make any Loan shall be affected by any other Lender's failure to make any Loan. 

        SECTION
2.3.2.    Swing Line Loans; Participations, etc.    (a) By telephonic notice to the Swing Line Lender
on or before 12:00 noon on a Business Day (followed (within one Business Day) by the delivery of a confirming Borrowing Request), the Borrower may from time to time irrevocably request that Swing Line
Loans be made by the Swing Line Lender in an aggregate minimum principal amount of $250,000 and an integral multiple of $50,000. All Swing Line Loans shall be made as Base Rate Loans and shall not be
entitled to be converted into LIBO Rate Loans. The proceeds of each Swing Line Loan shall be made available by the Swing Line Lender to the Borrower by wire transfer to the account the Borrower shall
have specified in its notice therefor by the close of business on the Business Day telephonic notice is received by the Swing Line Lender. Upon the making of each Swing Line Loan, and without further
action on the part of the Swing Line Lender or any other Person, each Revolving Loan Lender (other than the Swing Line Lender) shall be deemed to have irrevocably purchased, to the extent of its
Revolving Loan Percentage, a participation interest in such Swing Line Loan, and such Revolving Loan Lender shall, to the extent of its Revolving Loan Percentage, be responsible for reimbursing within
one Business Day of receiving notice thereof the Swing Line Lender for Swing Line Loans which have not been reimbursed by the Borrower in accordance with the terms of this Agreement. 

        (b)   If
any Default shall occur and be continuing, then each Revolving Loan Lender (other than the Swing Line Lender) irrevocably agrees that it will, at the request of the
Swing Line Lender, make a Revolving Loan (which shall initially be funded as a Base Rate Loan) in an amount equal to such Lender's Revolving Loan Percentage of the aggregate principal amount of all
such Swing Line Loans then outstanding (such outstanding Swing Line Loans hereinafter referred to as the "Refunded Swing Line Loans"). On or before
11:00 a.m. on the first Business Day following receipt by each Revolving 

30

 

Loan
Lender of a request to make Revolving Loans as provided in the preceding sentence, each Revolving Loan Lender shall deposit in an account specified by the Swing Line Lender the amount so
requested in same day funds and such funds shall be applied by the Swing Line Lender to repay the Refunded Swing Line Loans. At the time the Revolving Loan Lenders make the above referenced Revolving
Loans, the Swing Line Lender shall be deemed to have made, in consideration of the making of the Refunded Swing Line Loans, Revolving Loans in an amount equal to the Swing Line Lender's Revolving Loan
Percentage of the aggregate principal amount of the Refunded Swing Line Loans. Upon the making (or deemed making, in the case of the Swing Line Lender) of any Revolving Loans pursuant to this clause,
the amount so funded shall become an outstanding Revolving Loan and shall no longer be owed as a Swing Line Loan. All interest payable with respect to any Revolving Loans made (or deemed made, in the
case of the Swing Line Lender) pursuant to this clause shall be appropriately adjusted to reflect the period of time during which the Swing Line Lender had outstanding Swing Line Loans in respect of
which such Revolving Loans were made. Each Revolving Loan Lender's obligation to make the Revolving Loans referred to in this clause shall be absolute and unconditional and shall not be affected by
any circumstance, including (i) any set-off, counterclaim, recoupment, defense or other right which such Lender may have against the Swing Line Lender, any Obligor or any Person for
any reason whatsoever; (ii) the occurrence or continuance of any Default; (iii) any adverse change in the condition (financial or otherwise) of any Obligor; (iv) the acceleration
or maturity of any Obligations or the termination of any Commitment after the making of any Swing Line Loan; (v) any breach of any Loan Document by any Person; or (vi) any other
circumstance, happening or event whatsoever, whether or not similar to any of the foregoing. 

        SECTION
2.4.    Continuation and Conversion Elections.    By telephonic notice to the Administrative Agent on or
before 12:00 noon on a Business Day (followed (within one Business Day) by the delivery of a confirming Continuation/Conversion Notice), the Borrower may from time to time irrevocably elect, on not
less than one Business Day's notice in the case of Base Rate Loans, or three Business Days' notice in the case of LIBO Rate Loans, and in either case not more than five Business Days' notice, that
all, or any portion in an aggregate minimum amount of $2,000,000 and an integral multiple of $500,000 be, in the case of Base Rate Loans, converted into LIBO Rate Loans or be, in the case of LIBO Rate
Loans, converted into Base Rate Loans or continued as LIBO Rate Loans (in the absence of delivery of a Continuation/Conversion Notice with respect to any LIBO Rate Loan at least three Business Days
(but not more than five Business Days) before the last day of the then current Interest Period with respect thereto, such LIBO Rate Loan shall, on such last day, automatically convert to a Base Rate
Loan); provided that (x) each such conversion or continuation shall be pro rated among the applicable outstanding Loans of all Lenders that have
made such Loans, and (y) no portion of the outstanding principal amount of any Loans may be continued as, or be converted into, LIBO Rate Loans when any Default has occurred and is continuing. 

        SECTION
2.5.    Funding.    Each Lender may, if it so elects, fulfill its obligation to make, continue or convert LIBO
Rate Loans hereunder by causing one of its foreign branches or Affiliates (or an international banking facility created by such Lender) to make or maintain such LIBO Rate Loan;  provided that such LIBO
Rate Loan shall nonetheless be deemed to have been made and to be held by such Lender, and the obligation of the Borrower to
repay such LIBO Rate Loan shall nevertheless be to such Lender for the account of such foreign branch, Affiliate or international banking facility. In addition, the Borrower hereby consents and agrees
that, for purposes of any determination to be made for purposes of Sections 4.1, 4.2, 4.3 or 4.4, it
shall be conclusively assumed that each Lender elected to fund all LIBO Rate Loans by purchasing Dollar deposits in its LIBOR Office's interbank eurodollar market. 

        SECTION
2.6.    Issuance Procedures.    By delivering to an Issuer, with a copy to the Administrative Agent, an
Issuance Request on or before 10:00 a.m. on a Business Day, the Borrower may from time to time irrevocably request on not less than three nor more than ten Business Days' notice, in the case 

31

 

of
an initial issuance of a Letter of Credit and not less than three Business Days' prior notice, in the case of a request for the extension of the Stated Expiry Date of a standby Letter of Credit (in
each case, unless a shorter notice period is agreed to by the Issuer, in its sole discretion), that an Issuer issue, or extend the Stated Expiry Date of, a Letter of Credit in such form as may be
requested by the Borrower and approved by such Issuer, solely for the purposes described in Section 7.1.7. Each Letter of Credit shall by its
terms be stated to expire on a date (its "Stated Expiry Date") no later than the earlier to occur of (i) five Business Days prior to the
Revolving Loan Commitment Termination Date or (ii) (unless otherwise agreed to by an Issuer, in its sole discretion), one year from the date of its issuance. Each Issuer will make available to
the beneficiary thereof the original of the Letter of Credit which it issues. 

        SECTION
2.6.1.    Other Lenders Participation.    Upon the issuance of each Letter of Credit, and without further
action, each Revolving Loan Lender (other than the Issuer) shall be deemed to have irrevocably purchased, to the extent of its Revolving Loan Percentage, a participation interest in such Letter of
Credit (including the contingent liability of such Issuer and the right to receive any Reimbursement Obligation with respect thereto), and such Revolving Loan Lender shall, to the extent of its
Revolving Loan Percentage, be responsible for reimbursing the applicable Issuer within one Business Day of receiving (a) notice from the Issuer that such Reimbursement Obligations have not been
reimbursed by the Borrower in accordance with Section 2.6.3 or (b) notice from the Administrative Agent (who will have received such
notice from the Borrower) that the Borrower intends to refinance such Reimbursement Obligation with a Revolving Loan. In addition, such Revolving Loan Lender shall, to the extent of its Revolving Loan
Percentage, be entitled to receive a ratable portion of the Letter of Credit fees payable pursuant to Section 3.3.3 with respect to each Letter
of Credit (other than the issuance fees payable to the Issuer of such Letter of Credit pursuant to the last sentence of Section 3.3.3) and of
interest payable pursuant to Section 3.2 with respect to any Reimbursement Obligation. To the extent that any Revolving Loan Lender has
reimbursed any Issuer for a Disbursement, such Lender shall be entitled to receive its ratable portion of any amounts subsequently received (from the Borrower or otherwise) in respect of such
Disbursement. 

        SECTION
2.6.2.    Disbursements.    An Issuer will notify the Borrower and the Administrative Agent promptly of the
presentment for payment of any Letter of Credit issued by such Issuer, together with notice of the date (the "Disbursement Date") such payment shall be
made (each such payment, a "Disbursement"). Subject to the terms and provisions of such Letter of Credit and this Agreement, the applicable Issuer shall
make such payment to the beneficiary (or its designee) of such Letter of Credit. Prior to 12:00 noon on the first Business Day following the Disbursement Date, the Borrower will (a) deliver a
Borrowing Notice to the Administrative Agent in order to refinance such Reimbursement Obligation with a Revolving Loan accruing at the Base Rate or (b) reimburse the applicable Issuer, for all
amounts which such Issuer has disbursed under such Letter of Credit, together with interest thereon at a rate per annum equal to the rate per annum then in effect for Base Rate Loans (with the then
Applicable Margin for Revolving Loans accruing on such amount) pursuant to Section 3.2 for the period from the Disbursement Date through the date
of such reimbursement. Without limiting in any way the foregoing and notwithstanding anything to the contrary contained herein or in any separate application for any Letter of Credit, the Borrower
hereby acknowledges and agrees that it shall be obligated to reimburse the applicable Issuer upon each Disbursement of a Letter of Credit, and it shall be deemed to be the obligor for purposes of each
such Letter of Credit issued hereunder (whether the account party on such Letter of Credit is the Borrower or a Subsidiary Guarantor). 

        SECTION
2.6.3.    Reimbursement.    The obligation (a "Reimbursement
Obligation") of the Borrower under Section 2.6.2 to reimburse an Issuer with respect to each Disbursement (including
interest thereon), and, upon the failure of the Borrower to reimburse an Issuer, each Revolving Loan Lender's obligation under Section 2.6.1 to
reimburse an Issuer, shall be absolute and unconditional under any and all circumstances and irrespective of any setoff, counterclaim or defense to payment 

32

 

which
the Borrower or such Revolving Loan Lender, as the case may be, may have or have had against such Issuer or any Lender, including any defense based upon the failure of any Disbursement to
conform to the terms of the applicable Letter of Credit (if, in such Issuer's good faith opinion, such Disbursement is determined to be appropriate) or any non-application or
misapplication by the beneficiary of the proceeds of such Letter of Credit; provided that after paying in full its Reimbursement Obligation hereunder, nothing herein shall adversely affect the right
of the Borrower or such Lender, as the case may be, to commence any proceeding against an Issuer for any wrongful Disbursement made by such Issuer under a Letter of Credit as a result of acts or
omissions constituting gross negligence or willful misconduct on the part of such Issuer. 

        SECTION
2.6.4.    Deemed Disbursements.    Upon the occurrence and during the continuation of any Event of Default
under Section 8.1.9 or upon notification by the Administrative Agent (acting at the direction of the Required Lenders) to the Borrower of its
obligations under this Section, following the occurrence and during the continuation of any other Event of Default, 

        (a)   the
aggregate Stated Amount of all Letters of Credit shall, without demand upon or notice to the Borrower or any other Person, be deemed to have been paid or disbursed
by the Issuers of such Letters of Credit (notwithstanding that such amount may not in fact have been paid or disbursed); and 

        (b)   the
Borrower shall be immediately obligated to deposit (in the manner described below) an amount deemed to have been so paid or disbursed by such Issuers. 

Amounts
payable by the Borrower pursuant to this Section shall be deposited in immediately available funds with the Administrative Agent and held as collateral security for the Reimbursement
Obligations. When all Events of Defaults giving rise to the deemed disbursements under this Section have been cured or waived the Administrative Agent shall return to the Borrower all amounts then on
deposit with the Administrative Agent pursuant to this Section which have not been applied to the satisfaction of the Reimbursement Obligations. 

        SECTION
2.6.5.    Nature of Reimbursement Obligations.    The Borrower, each other Obligor and, to the extent set
forth in Section 2.6.1, each Revolving Loan Lender shall assume all risks of the acts, omissions or misuse of any Letter of Credit by the
beneficiary thereof. No Issuer (except to the extent of its own gross negligence or willful misconduct) shall be responsible for: 

        (a)   the
form, validity, sufficiency, accuracy, genuineness or legal effect of any Letter of Credit or any document submitted by any party in connection with the application
for and issuance of a Letter of Credit, even if it should in fact prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent or forged; 

        (b)   the
form, validity, sufficiency, accuracy, genuineness or legal effect of any instrument transferring or assigning or purporting to transfer or assign a Letter of Credit
or the rights or benefits thereunder or the proceeds thereof in whole or in part, which may prove to be invalid or ineffective for any reason; 

        (c)   failure
of the beneficiary to comply fully with conditions required in order to demand payment under a Letter of Credit; 

        (d)   errors,
omissions, interruptions or delays in transmission or delivery of any messages, by mail, cable, telegraph, telex or otherwise; or 

        (e)   any
loss or delay in the transmission or otherwise of any document or draft required in order to make a Disbursement under a Letter of Credit. 

None
of the foregoing shall affect, impair or prevent the vesting of any of the rights or powers granted to any Issuer or any Revolving Loan Lender hereunder. In furtherance and not in limitation or 

33

 

derogation
of any of the foregoing, any action taken or omitted to be taken by an Issuer in good faith (and not constituting gross negligence or willful misconduct) shall be binding upon each Obligor
and each such Revolving Loan Lender, and shall not put such Issuer under any resulting liability to any Obligor or any Revolving Loan Lender, as the case may be. 

        SECTION
2.6.6.    Letter of Credit Participation Agreements.    In the event that any Issuer (a
"Participating Issuer") enters into any agreement with any other Person (a "Non-Lender
Issuer") to issue letters of credit for the account of the Borrower, such letter of credit will be deemed to be a Letter of Credit issued hereunder and the Reimbursement
Obligation and other Obligations of the Borrower and related Obligations of the Guarantors with respect to such Letter of Credit and the obligation of the Revolving Lenders to participate in such
Letters of Credit will be obligations owed to the Participating Issuer and not the Non-Lender Issuer. The Non-Lender Issuer will have no claims or any other rights hereunder or
against any Obligor or any Lender other than the Participating Issuer. 

        SECTION
2.7.    Register; Notes.    (a) The Borrower hereby designates the Administrative Agent to serve as the
Borrower's agent, solely for the purpose of this clause, to maintain a register (the "Register") on which the Administrative Agent will record each
Lender's Commitment, the Loans made by each Lender and each repayment in respect of the principal amount of the Loans, annexed to which the Administrative Agent shall retain a copy of each Lender
Assignment Agreement delivered to the Administrative Agent pursuant to Section 10.11. Failure to make any recordation, or any error in such
recordation, shall not affect any Obligor's Obligations. The entries in the Register shall be conclusive, in the absence of manifest error, and the Borrower, the Administrative Agent and the Lenders
shall treat each Person in whose name a Loan is registered (or, if applicable, to which a Note has been issued) as the owner thereof for the purposes of all Loan Documents, notwithstanding notice or
any provision herein to the contrary. Any assignment or transfer of a Commitment or the Loans made pursuant hereto shall be registered in the Register only upon delivery to the Administrative Agent of
a Lender Assignment Agreement that has been executed by the requisite parties pursuant to Section 10.11. No assignment or transfer of a Lender's
Commitment or Loans shall be effective unless such assignment or transfer shall have been recorded in the Register by the Administrative Agent as provided in this Section. 

        (b)   The
Borrower agrees that, upon the request of any Lender, the Borrower will execute and deliver to such Lender a Note evidencing the Loans made by, and payable to the
order of, such Lender in a maximum principal amount equal to such Lender's Percentage of the original applicable Commitment Amount. The Borrower hereby irrevocably authorizes each Lender to make (or
cause to be made) appropriate notations on the grid attached to such Lender's Note (or on any continuation of such grid), which notations, if made, shall evidence, inter alia, the date of, the
outstanding principal amount of, and the interest rate and Interest Period applicable to the Loans evidenced thereby. Such notations shall, to the extent not inconsistent with notations made by the
Administrative Agent in the Register, be conclusive and binding on each Obligor absent manifest error; provided that the failure of any Lender to make any such notations or any error in such notations
shall not limit or otherwise affect any Obligations of any Obligor. 

 
 

ARTICLE III
  
    REPAYMENTS, PREPAYMENTS, INTEREST AND FEES    
    

        SECTION
3.1.    Repayments and Prepayments; Application.    The Borrower agrees that the Loans shall be repaid and
prepaid pursuant to the following terms. 

        SECTION
3.1.1.    Repayments and Prepayments.    The Borrower shall repay in full the unpaid principal amount of each
Loan upon the applicable Stated Maturity Date therefor. Prior thereto, payments and prepayments of the Loans shall or may be made as set forth below. 

34

 

        (a)   From
time to time on any Business Day, the Borrower may make a voluntary prepayment, in whole or in part, of the outstanding principal amount of any 

          (i)  Loans
(other than Swing Line Loans); provided that (A) any such prepayment of the Term Loans shall be made  pro rata among Term Loans of the same type and,
if applicable, having the same Interest Period of all Lenders that have made such Term Loans and any
such prepayment of Revolving Loans shall be made pro rata among the Revolving Loans of the same type and, if applicable, having the same Interest Period
of all Lenders that have made such Revolving Loans; (B) all such voluntary prepayments shall require, in the case of Base Rate Loans at least one Business Day's prior notice, and in the case of
LIBO Rate Loans at least three Business Day's prior notice, and in either case not more than five Business Days' prior notice to the Administrative Agent (which notice may be telephonic so long as
such notice is confirmed in writing within 24 hours thereafter); and (C) all such voluntary partial
prepayments shall be, in the case of LIBO Rate Loans, in an aggregate minimum amount of $2,000,000 and an integral multiple of $1,000,000 and, in the case of Base Rate Loans, in an aggregate minimum
amount of $1,000,000 and an integral multiple of $500,000; and 

         (ii)  Swing
Line Loans; provided that (A) all such voluntary prepayments shall require prior telephonic notice to the
Swing Line Lender on or before 1:00 p.m. on the day of such prepayment (such notice to be confirmed in writing within 24 hours thereafter); and (B) all such voluntary partial
prepayments shall be in an aggregate minimum amount of $250,000 and an integral multiple of $50,000. 

        (b)   On
each date when the sum of (i) the aggregate outstanding principal amount of all Revolving Loans and Swing Line Loans and (ii) the aggregate amount of
all Letter of Credit Outstandings exceeds the Revolving Loan Commitment Amount (as it may be reduced from time to time pursuant to this Agreement), the Borrower shall make a mandatory prepayment of
Revolving Loans or Swing Line Loans (or both) and, if necessary, after repayment of such Loans, Cash Collateralize Letter of Credit Outstandings, in an aggregate amount equal to such excess. 

        (c)   Concurrently
with the receipt by the Borrower or any of its Subsidiaries of any Net Debt Proceeds, the Borrower shall (or shall cause such Subsidiary to) make a
mandatory prepayment of the Loans in an amount equal to 100% of such Net Debt Proceeds, to be applied as set forth in Section 3.1.2. 

        (d)   In
the event the Borrower or any of its Subsidiaries receives any Net Disposition Proceeds or Net Casualty Proceeds, the Borrower shall, (subject to the proviso hereto)
within 5 Business Days of such receipt, deliver to the Administrative Agent a calculation of the amount of such Net Disposition Proceeds or Net Casualty Proceeds, and, to the extent the aggregate
amount of such proceeds received by the Borrower and their respective Subsidiaries in any Fiscal Year exceeds $1,000,000, the Borrower shall (or shall cause such Subsidiary to) make a mandatory
prepayment of the Loans in an amount equal to 100% of such excess; provided that, upon written notice by the Borrower to the Administrative Agent not
more than 5 Business Days following receipt of any Net Disposition Proceeds or Net Casualty Proceeds, such proceeds may be retained by the Borrower and its Subsidiaries (and be excluded from the
prepayment requirements of this clause) if (A) the Borrower informs the Administrative Agent in such notice of its good faith intention to apply (or cause one or more of its Subsidiaries to
apply) such Net Disposition Proceeds or Net Casualty Proceeds to the acquisition of other assets or properties in the U.S. consistent with the businesses permitted to be conducted pursuant to  Section 7.2.1 (including by way of merger or Investment), and (B) within 365 days following the receipt of such Net Disposition
Proceeds or Net Casualty Proceeds, such proceeds are applied or committed to such acquisition. The amount of such Net Disposition Proceeds or Net Casualty Proceeds unused or uncommitted after such
365 day period shall be applied to prepay the Loans as set forth in 

35

 

 Section 3.1.2; provided that in the event the Borrower or such Subsidiary has not applied such committed but unused Net
Disposition Proceeds or Net Casualty Proceeds for such acquisition within seventeen months following the receipt of such Net Disposition Proceeds or Net Casualty Proceeds, all of such committed but
unused Net Disposition Proceeds or Net Casualty Proceeds shall be applied to prepay the Loans as set forth in Section 3.1.2 at the end of such
seventeen month period. At any time after receipt of any such Net Disposition Proceeds or Net Casualty Proceeds in excess of $2,500,000 during any Fiscal Year (individually or in the aggregate) but
prior to the application thereof to a mandatory prepayment or the acquisition of other assets or properties as described above, the Borrower shall deposit (or cause to be deposited) an amount equal to
such excess into a cash collateral account (the "Proceeds Account") maintained with (and subject to documentation reasonably satisfactory to) the
Administrative Agent for the benefit of the Secured Parties (and over which the Administrative Agent shall have a first priority perfected Lien) pending such application as a prepayment or to be
released as requested by the Borrower in respect of such acquisition. Amounts deposited in such cash collateral account shall be invested in Cash Equivalent Investments, as directed by the Borrower. 

        (e)   Within
15 days after delivering a Compliance Certificate with respect to each Fiscal Quarter resulting in the commencement or continuation of a Dividend
Suspension Period, the Borrower shall make a mandatory prepayment of the Loans in an amount equal to 50% of Available Cash (if positive) for such Fiscal Quarter, to be applied as set forth in  Section 3.1.2; 

        (f)    Immediately
upon any acceleration of the Stated Maturity Date of any Loans pursuant to Sections 8.2 or  8.3, the Borrower shall repay all the Loans, unless, pursuant to
Section 8.3, only a portion of
all the Loans is so accelerated (in which case the portion so accelerated shall be so repaid). 

        Each
prepayment of any Loans made pursuant to this Section shall be without premium or penalty, except as may be required by  Section 4.4. In lieu of making any mandatory prepayment pursuant to 
clauses (c), (d), or (e) of this Section in respect of any LIBO Rate Loan other than on
the last day of the Interest Period therefor, so long as no Default shall have occurred and be continuing, the Borrower at its option may deposit with the Administrative Agent an amount equal to the
amount of the LIBO Rate Loan to be prepaid and such LIBO Rate Loan shall be repaid on the last day of the Interest Period therefor in the required amount. Such deposit shall be held by the
Administrative Agent in a corporate time deposit account established on terms reasonably satisfactory to the Administrative Agent, earning interest at the then-customary rate for accounts
of such type. Such deposit shall cash collateralize the applicable Obligations; provided that (A) the Borrower may at any time direct that such
deposit be applied to make the applicable payment required pursuant to this Section, subject to the provisions of Section 4.4 and (B) upon
the occurrence of a Default, such amounts on deposit shall be applied by the Administrative Agent to prepay the Loans. 

36

  

        SECTION 3.1.2.    Application.    Amounts prepaid pursuant to Section 3.1.1
shall be applied as set forth in this Section. 

        (a)   Subject
to clause (b), each prepayment or repayment of the principal of the Loans shall be applied, to the extent
of such prepayment or repayment, first, to the principal amount thereof being maintained as Base Rate Loans, and  second, subject to the terms of the last
paragraph of Section 3.1.1 and  Section 4.4, to the principal amount thereof being maintained as LIBO Rate Loans. 

        (b)   Each
prepayment of the Loans made pursuant to clauses (c), (d) or  (e) of Section 3.1.1 shall be
applied (i) first, pro
rata to a mandatory prepayment of the outstanding principal amount of all Term Loans, and (ii) second, once all Term
Loans have been repaid in full, to a reduction of the Revolving Loan Commitment Amount in accordance with Section 2.2.2. 

        SECTION
3.2.    Interest Provisions.    Interest on the outstanding principal amount of the Loans shall accrue and be
payable in accordance with the terms set forth below. 

        SECTION
3.2.1.    Rates.    Pursuant to an appropriately delivered Borrowing Request or Continuation/Conversion
Notice, the Borrower may elect that the Loans comprising a Borrowing accrue interest at a rate per annum: 

        (a)   on
that portion maintained from time to time as a Base Rate Loan, equal to the sum of the Alternate Base Rate from time to time in effect plus  the Applicable Margin; provided that all Swing Line Loans shall always accrue interest at a rate per annum equal to the
Alternate Base Rate from time to time in effect plus the then effective Applicable Margin for Revolving Loans maintained as Base Rate Loans; and 

        (b)   on
that portion maintained as a LIBO Rate Loan, during each Interest Period applicable thereto, equal to the sum of the LIBO Rate (Reserve Adjusted) for such Interest
Period plus the Applicable Margin, 

but
in no event in excess of the maximum nonusurious interest rate permitted by applicable law. All LIBO Rate Loans shall bear interest from and including the first day of the applicable Interest
Period
to (but not including) the last day of such Interest Period at the interest rate determined as applicable to such LIBO Rate Loan. Interest on Base Rate Loans shall be calculated from and including the
first day of the Borrowing of such Base Rate Loan to (but not including) the date interest is required to be paid on such Base Rate Loan pursuant to  Section 3.2.3. 

        SECTION
3.2.2.    Post-Maturity Rates.    After the date any principal amount of any Loan or Reimbursement
Obligation is due and payable (whether on the Stated Maturity Date, upon acceleration or otherwise), or after any other monetary Obligation of the Borrower shall have become due and payable, and such
Reimbursement Obligation or Obligation shall not have been paid, the Borrower shall pay, but only to the extent permitted by law, interest (after as well as before judgment) on such amounts at a rate
per annum equal to (a) in the case of overdue principal on any Loan, the rate of interest that otherwise would be applicable to such Loan plus 2%
per annum; and (b) in the case of overdue interest, fees and other monetary Obligations, the Alternate Base Rate plus 2% per annum, but in no
event in excess of the maximum nonusurious interest rate permitted by applicable law. 

        SECTION
3.2.3.    Payment Dates.    Interest accrued on each Loan shall be payable, without duplication: 

        (a)   on
the Stated Maturity Date therefor; 

        (b)   on
the date of any payment or prepayment, in whole or in part, of principal outstanding on such Loan on the principal amount so paid or prepaid; 

37

 

        (c)   with
respect to Base Rate Loans (including Swing Line Loans), on each Quarterly Payment Date occurring after the Amendment Effective Date; 

        (d)   with
respect to LIBO Rate Loans, on the last day of each applicable Interest Period (and, if such Interest Period shall exceed three months, on each Quarterly Payment
Date occurring after the first day of such Interest Period); and 

        (e)   on
that portion of any Loans the Stated Maturity Date of which is accelerated pursuant to Sections 8.2 or  8.3, immediately upon such acceleration. 

Interest
accrued on Loans or other monetary Obligations after the date such amount is due and payable (whether on the Stated Maturity Date, upon acceleration or otherwise) shall be payable upon
demand. 

        SECTION
3.3.    Fees.    The Borrower agrees to pay the fees set forth below. All such fees shall be
non-refundable. 

        SECTION
3.3.1.    Commitment Fee.    The Borrower agrees to pay to the Administrative Agent for the account of each
Lender with a Revolving Loan Commitment, for the period (including any portion thereof when any of its Commitments are suspended by reason of the Borrower's inability to satisfy any condition of  Article V) commencing on the Amendment Effective Date and continuing through the Commitment Termination Date, a commitment fee in an amount per
annum equal to 0.50%, in each case on such Lender's Percentage of the sum of the average daily unused portion of the Revolving Loan Commitment Amount less  the average daily amount of Letter of Credit
Outstandings. All commitment fees payable pursuant to this Section shall be calculated on a year comprised of 360 days and
payable by the Borrower on each Quarterly Payment Date, commencing with the first Quarterly Payment Date following the Amendment Effective Date, and on the Revolving Loan Commitment Termination Date.
The making of Swing Line Loans shall not constitute usage of the Revolving Loan Commitment with respect to the calculation of commitment fees to be paid by the Borrower to the Lenders. 

        SECTION
3.3.2.    Other Fees.    The Borrower agrees to pay the fees in the amounts and on the dates set forth in each
Fee Letter. 

        SECTION
3.3.3.    Letter of Credit Fee.    The Borrower agrees to pay to the Administrative Agent, for the  pro rata account
of the applicable Issuer and each Revolving Loan Lender, a Letter of Credit fee in a per annum amount equal to the then effective
Applicable Margin for Revolving Loans maintained as LIBO Rate Loans, multiplied by the Stated Amount of each such Letter of Credit, such fees being payable quarterly in arrears on each Quarterly
Payment Date following the date of issuance of each Letter of Credit and on the Commitment Termination Date. The Borrower further agrees to pay to the applicable Issuer quarterly in arrears on each
Quarterly Payment Date following the date of issuance of each Letter of Credit and on the Commitment Termination Date an issuance fee as agreed to by the Borrower and such Issuer. 

 
 

ARTICLE IV
  
    CERTAIN LIBO RATE AND OTHER PROVISIONS    
    

        SECTION
4.1.    LIBO Rate Lending Unlawful.    If any Lender shall determine (which determination shall, upon notice
thereof to the Borrower and the Administrative Agent, be conclusive and binding on the Borrower) that the introduction of or any change in or in the interpretation of any law makes it unlawful, or any
Governmental Authority asserts that it is unlawful, for such Lender to make or continue any Loan as, or to convert any Loan into, a LIBO Rate Loan, the obligations of such Lender to make, continue or
convert any such LIBO Rate Loan shall, upon such determination, forthwith be suspended until such Lender shall notify the Administrative Agent that the circumstances 

38

 

causing
such suspension no longer exist, and all outstanding LIBO Rate Loans payable to such Lender shall automatically convert into Base Rate Loans at the end of the then current Interest Periods
with respect thereto or sooner, if required by such law or assertion. 

        SECTION
4.2.    Deposits Unavailable.    If the Administrative Agent shall have determined that 

        (a)   Dollar
deposits in the relevant amount and for the relevant Interest Period are not available to it in its relevant market; or 

        (b)   by
reason of circumstances affecting its relevant market, adequate means do not exist for ascertaining the interest rate applicable hereunder to LIBO Rate Loans; 

then,
upon notice from the Administrative Agent to the Borrower and the Lenders, the obligations of all Lenders under Sections 2.3 and  2.4 to make or continue
any Loans as, or to convert any Loans into, LIBO Rate Loans shall forthwith be suspended until the Administrative Agent shall
notify the Borrower and the Lenders that the circumstances causing such suspension no longer exist. 

        SECTION
4.3.    Increased LIBO Rate Loan Costs, etc.    The Borrower agrees to reimburse each Lender and Issuer for
any increase in the cost to such Lender or Issuer of, or any reduction in the amount of any sum receivable by such Person in respect of, such Person's Commitments and the making of Credit Extensions
hereunder (including the making, continuing or maintaining (or of its obligation to make or continue) any Loans as, or of converting (or of its obligation to convert) any Loans into, LIBO Rate Loans)
that arise in connection with any change in, or the introduction, adoption, effectiveness, change in interpretation, reinterpretation or phase-in after the Amendment Effective Date of, any
law or regulation, directive, guideline, decision or request (whether or not having the force of law) of any Governmental Authority, except for such changes with respect to increased capital costs and
Taxes which are governed by Sections 4.5 and 4.6, respectively. Each affected Lender or Issuer shall
promptly notify the Administrative Agent and the Borrower in writing of the occurrence of any such event, stating the reasons therefor and the additional amount required fully to compensate such
Person for such increased cost or reduced amount. Such additional amounts shall be payable by the Borrower directly to such Lender or Issuer within five days of its receipt of such notice, and such
notice shall, in the absence of manifest error, be conclusive and binding on the Borrower. Notwithstanding the
foregoing, no Lender or Issuer shall be entitled to compensation under this Section for any costs incurred or reductions suffered with respect to any date that it has such costs unless it shall have
notified the Borrower that it will demand compensation for such costs not more than 180 days after the date on which it shall have become aware of such costs. 

        SECTION
4.4.    Funding Losses.    In the event any Lender shall incur any loss or expense (including any loss or
expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired by such Lender to make or continue any portion of the principal amount of any Loan as, or to convert
any portion of the principal amount of any Loan into, a LIBO Rate Loan) as a result of 

        (a)   any
conversion or repayment or prepayment of the principal amount of any LIBO Rate Loan on a date other than the scheduled last day of the Interest Period applicable
thereto, whether pursuant to Article III or otherwise; 

        (b)   any
Loans not being made as LIBO Rate Loans in accordance with the Borrowing Request therefor; or 

        (c)   any
Loans not being continued as, or converted into, LIBO Rate Loans in accordance with the Continuation/Conversion Notice therefor; 

then,
upon the written notice of such Lender to the Borrower (with a copy to the Administrative Agent), the Borrower shall, within five days of its receipt thereof, pay directly to such Lender such
amount as will (in the reasonable determination of such Lender) reimburse such Lender for such loss 

39

 

or
expense. Such written notice shall, in the absence of manifest error, be conclusive and binding on the Borrower. 

        SECTION
4.5.    Increased Capital Costs.    If, after the Amendment Effective Date, any change in, or the
introduction, adoption, effectiveness, change in interpretation, reinterpretation or phase-in of, any law or regulation, directive, guideline, decision or request (whether or not having
the force of law) of any Governmental Authority affects or would increase the amount of capital required or expected to be maintained by any Credit Party or any Person controlling such Credit Party,
and such Credit Party determines (in good faith but in its sole and absolute discretion) that the rate of return on its or such controlling Person's capital as a consequence of the Commitments or the
Credit Extensions made, or the Letters of Credit participated in, by such Credit Party is reduced to a level below that which such Credit Party or such controlling Person could have achieved but for
the occurrence of any such circumstance, then upon prompt notice from time to time by such Credit Party
to the Borrower, the Borrower shall within five days following receipt of such notice pay directly to such Credit Party additional amounts sufficient to compensate such Credit Party or such
controlling Person for such reduction in rate of return. A statement of such Credit Party as to any such additional amount or amounts shall, in the absence of manifest error, be conclusive and binding
on the Borrower. In determining such amount, such Credit Party may use any method of averaging and attribution that it (in its sole and absolute discretion) shall deem applicable. Notwithstanding the
foregoing, no Credit Party shall be entitled to compensation under this Section for any additional amounts with respect to any date unless it shall have notified the Borrower that it will demand
compensation hereunder not more than 180 days after the date on which it shall have become aware of such increased costs. 

        SECTION
4.6.    Taxes.    The Borrower covenants and agrees as follows with respect to Taxes. 

        (a)   Any
and all payments by the Borrower under each Loan Document shall be made free and clear of, and without deduction or withholding for or on account of, any Taxes,
unless required by law. In the event that any Taxes are imposed and required to be deducted or withheld from any payment required to be made by any Obligor to or on behalf of any Credit Party under
any Loan Document, then: 

          (i)  subject
to clause (f), if such Taxes are Non-Excluded Taxes, the amount of such payment shall be
increased as may be necessary so that such payment is made, after withholding or deduction for or on account of such Taxes, in an amount that is not less than the amount provided for in such Loan
Document; and 

         (ii)  the
Borrower shall withhold the full amount of such Taxes from such payment (as increased pursuant to  clause (a)(i) of this Section) and shall pay such amount to the Governmental Authority imposing
such Taxes in accordance with applicable law. 

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

        (c)   As
promptly as practicable after the payment of Other Taxes or Non-Excluded Taxes, and in any event within 45 days of any such payment being made, the
Borrower shall furnish to the Administrative Agent a copy of an official receipt (or a certified copy thereof) evidencing the payment of such Taxes or Other Taxes. The Administrative Agent shall make
copies thereof available to any Lender upon request therefor. 

        (d)   Subject
to clause (f), the Borrower shall indemnify each Credit Party for any Non-Excluded Taxes and
Other Taxes, levied, imposed or assessed on (and whether or not paid directly by) such Credit Party whether or not such Non-Excluded Taxes or Other Taxes are correctly or legally asserted
by the relevant Governmental Authority. Promptly upon having knowledge that any such Non-Excluded Taxes or Other Taxes have been levied, imposed or assessed, and promptly upon notice
thereof by any Credit Party, the Borrower shall pay such 

40

 

Non-Excluded
Taxes or Other Taxes directly to the relevant Governmental Authority provided that the Borrower shall not be obligated to so
indemnify each Credit Party in respect of interest or penalties attributable to any Non-Excluded Taxes or Other Taxes: (i) to the extent that (A) such interest or penalties
resulted solely from the failure of the Administrative Agent or such other Credit Party as applicable, to notify the Borrower of the imposition of such Non-Excluded Taxes or Other Taxes
within 120 days after the Administrative Agent or such other Credit Party (as the case may be) actually received written notice of such imposition from the applicable taxing authority and
(B) such interest and penalties are not attributable to periods beginning seven days after the Borrower actually receives written notice from the Administrative Agent or such other Credit Party
(as the case may be) of the imposition of such Taxes or (ii) such interest or penalties resulted solely from the gross negligence or willful misconduct of the Administrative Agent or such
Credit Party. With respect to indemnification for Non-Excluded Taxes and Other Taxes actually paid by any Credit Party or the indemnification provided in the immediately preceding
sentence, such indemnification shall be made within 30 days after the date such Credit Party makes written demand therefor. The Borrower acknowledges that any payment made to any Credit Party
or to any Governmental Authority in respect of the indemnification obligations of the Borrower provided in this clause shall constitute a payment in respect of which the provisions of  clause (a)
and this clause shall apply. 

        (e)   Each
Non-U.S. Credit Party, on or prior to the date on which such Non-U.S. Credit Party becomes a Credit Party hereunder (and from time to time
thereafter upon the request of the Borrower or the Administrative Agent, but only for so long as such non-U.S. Credit Party is legally entitled to do so), shall deliver to the Borrower and
the Administrative Agent either (i) two duly completed copies of either (x) Internal Revenue Service Form W-8BEN (or other applicable Internal Revenue Service
Form W-8) claiming eligibility of the Non-U.S. Credit Party for benefits of an income tax treaty to which the United States is a party or (y) Internal Revenue
Service Form W-8ECI, or in either case an applicable successor form; or (ii) in the case of a Non-U.S. Credit Party that is not legally entitled to deliver either
form listed in clause (e)(i), (x) a certificate to the effect that such Non-U.S. Credit Party is not (A) a "bank"
within the meaning of Section 881(c)(3)(A) of the Code, (B) a "10 percent shareholder" of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or
(C) a controlled foreign corporation receiving interest from a related person within the meaning of Section 881(c)(3)(C) of the Code (referred to as an "Exemption
Certificate") and (y) two duly completed copies of Internal Revenue Service Form W-8BEN (or other applicable Internal Revenue Service
Form W-8), or applicable successor forms. 

        (f)    The
Borrower shall not be obligated to pay any additional amounts to any Credit Party pursuant to clause (a)(i),
or to indemnify any Lender pursuant to clause (d), in respect of Non-Excluded Taxes to the extent imposed as a result of
(i) the failure of such Credit Party to deliver to the Borrower the form or forms and/or an Exemption Certificate, as applicable to such Credit Party, pursuant to  clause (e) or (ii) such
form or forms and/or Exemption Certificate not establishing a complete exemption from the Non-Excluded
Tax in question or the information or certifications made therein by the Credit Party being untrue or inaccurate on the date delivered in any material respect;  provided that the Borrower shall be
obligated to pay additional amounts to any such Credit Party pursuant to  clause (a)(i), or to indemnify any such Credit Party pursuant to clause (d), in respect of
such Non-Excluded Taxes to the extent that any such failure to deliver a form or forms or an Exemption Certificate or the failure of such form or forms or Exemption Certificate to
establish a complete exemption from Non-Excluded Taxes or inaccuracy or untruth contained therein resulted from (A) a change in any applicable statute, treaty, regulation or other
applicable law or any official interpretation of any of the foregoing by an applicable Governmental Authority (a "Change in Law") enacted, adopted,
promulgated or issued (as the case may be) after the Amendment Effective Date, which Change in Law rendered such Credit Party no longer legally 

41

 

entitled
to deliver such form or forms or Exemption Certificate or otherwise ineligible for a complete exemption from such Non-Excluded Taxes, or rendered the information or certifications
made in or such form or forms or Exemption Certificate untrue or inaccurate in a material respect, or (B) a redesignation of the Credit Party's lending office that was made at the request of
the Borrower. In addition, if at the time of an assignment under Section 10.11, any greater Non-Excluded Taxes subject to payment of
additional amounts pursuant to clause (a)(i) or indemnification pursuant to  clause (d) would apply to the assignee Credit Party than applied
to the assignor Credit Party, then such assignee Credit Party shall not be
entitled to additional amounts pursuant to clause (a)(i) or indemnification pursuant to  clause (d) with respect to the portion of such
Non-Excluded Taxes as exceeds the Non-Excluded Taxes applicable to the
assignor Credit Party unless the assignee Credit Party notifies the Borrower in writing at the time of the assignment (or if the Borrower's approval is required for such assignment, at the time of
delivery to the Borrower of a request for such approval) that such greater Non-Excluded Taxes are applicable to such assignee Credit Party (or if the Borrower's approval is required for
such assignment, that such greater Non-Excluded Taxes would be applicable to such assignee if such approval were granted). Each Credit Party, with respect to itself, agrees to indemnify
and hold harmless the Borrower from any Taxes, penalties, interest and other reasonable expenses, costs and losses incurred or payable by the Borrower as a result of the failure of the Borrower to
comply with its obligations under clause (a)(ii) in reliance on any form or certificate provided to it by such Credit Party pursuant to this
Section. 

        (g)   If
and to the extent that any Credit Party determines (in good faith) that it has actually realized a refund of a Tax in respect to which the Borrower paid any
additional amounts to such Credit Party pursuant to clause (a)(i) or clause (d), such
Credit Party shall, to the extent such Credit Party determines in good faith that such Credit Party may do so without prejudice to the retention of such refund and without any other adverse Tax
consequences to such Credit Party, pay to the Borrower an amount it determines to be the proportion of the refund as will leave it, after such payment, in no better or worse financial position than
had the Tax giving rise to the additional amounts not been imposed and had the additional amounts giving rise to such refund never been paid in the first place. If any refund resulting in a payment by
a Credit Party to the Borrower under this clause is ultimately disallowed (in whole or
in part, and including, as a result of a settlement with an applicable Governmental Authority), the Borrower shall, within ten days after receiving written notice from such Credit Party, return to
such Credit Party the portion of the payment previously made to the Borrower by such Credit Party (plus interest for the relevant period(s) at the applicable rate(s)) as such Credit Party shall
determine (in such Credit Party's sole discretion exercised in good faith) to be due and owning in accordance with this clause. 

        SECTION
4.7.    Payments, Computations, etc.    (a) Unless otherwise expressly provided in a Loan Document,
all payments by the Borrower pursuant to each Loan Document shall be made by the Borrower to the Administrative Agent for the pro rata account of the
Credit Parties entitled to receive such payment. All payments shall be made without setoff, deduction or counterclaim not later than noon on the date due in same day or immediately available funds to
such account as the Administrative Agent shall specify from time to time by notice to the Borrower. Funds received after that time shall be deemed to have been received by the Administrative Agent on
the next succeeding Business Day. The Administrative Agent shall promptly remit in same day funds to each Credit Party its share, if any, of such payments received by the Administrative Agent for the
account of such Credit Party. All interest (including interest on LIBO Rate Loans) and fees shall be computed on the basis of the actual number of days (including the first day but excluding the last
day) occurring during the period for which such interest or fee is payable over a year comprised of 360 days (or, in the case of interest on a Base Rate Loan (calculated at other than the
Federal Funds Rate), 365 days or, if appropriate, 366 days). Except as otherwise provided herein, payments due on a day other than a Business Day shall (except as otherwise required by  clause (c) of the definition of "Interest Period") be made on the next succeeding 

42

 

Business
Day and such extension of time shall be included in computing interest and fees in connection with that payment. 

        (b)   Except
as otherwise expressly set forth therein, all payments made under any Loan Document shall be applied upon receipt (i) first, to the payment of all
Obligations (other than Loans or interest thereon) owing to the Administrative Agent, in its capacity as the Administrative Agent (including the reasonable fees and expenses of counsel to the
Administrative Agent), (ii) second, after payment in full in cash of the amounts specified in clause (b)(i), to the ratable payment of all
interest and fees owing and due and payable with respect to the Credit Extensions and all costs and expenses owing to the Secured Parties pursuant to the terms of this Agreement, until paid in full in
cash, (iii) third, after payment in full in cash of the amounts specified in clauses (b)(i) and  (b)(ii), to the ratable payment of the principal
amount of the Loans then outstanding and due and payable, the aggregate Reimbursement Obligations then
owing and due and payable, and Cash Collateralization for contingent liabilities under Letter of Credit Outstandings and due and payable and, if such payment resulted from the proceeds of collateral,
to amounts owing to Secured Parties under Rate Protection Agreements and due and payable, (iv) fourth, after payment in full in cash of the amounts specified in  clauses (b)(i) through
(b)(iii), to the ratable payment of all other Obligations owing to the
Secured Parties and due and payable, (v) fifth, after payment in full in cash of the amounts specified in clauses (b)(i) through  (b)(iv), to each
applicable Obligor or any other Person lawfully entitled to receive such surplus pursuant to an order of a Governmental Authority. 

        SECTION
4.8.    Sharing of Payments.    If any Credit Party shall obtain any payment or other recovery (whether
voluntary, involuntary, by application of setoff or otherwise) on account of any Credit Extension or Reimbursement Obligation (other than pursuant to the terms of Sections 4.3,
4.4, 4.5 or 4.6) in excess of its pro rata share of payments obtained by all
Credit Parties, such Credit Party shall purchase from the other Credit Parties such participations in Credit Extensions made by them as shall be necessary to cause such purchasing Credit Party to
share the excess payment or other recovery ratably (to the extent such other Credit Parties were entitled to receive a portion of such payment or recovery) with each of them;  provided that if all or any
portion of the excess payment or other recovery is thereafter recovered from such purchasing Credit Party, the purchase
shall be rescinded and each Credit Party which has sold a participation to the purchasing Credit Party shall repay to the purchasing Credit Party the purchase price to the ratable extent of such
recovery together with an amount equal to such selling Credit Party's ratable share (according to the proportion of (a) the amount of such selling Credit Party's required repayment to the
purchasing Credit Party to (b) total amount so recovered from the purchasing Credit Party) of any interest or other amount paid or payable by the
purchasing Credit Party in respect of the total amount so recovered. The Borrower agrees that any Credit Party purchasing a participation from another Credit Party pursuant to this Section may, to the
fullest extent permitted by law, exercise all its rights of payment (including pursuant to Section 4.9) with respect to such participation as
fully as if such Credit Party were the direct creditor of the Borrower in the amount of such participation. If under any applicable bankruptcy, insolvency or other similar law any Credit Party
receives a secured claim in lieu of a setoff to which this Section applies, such Credit Party shall, to the extent practicable, exercise its rights in respect of such secured claim in a manner
consistent with the rights of the Credit Parties entitled under this Section to share in the benefits of any recovery on such secured claim. 

        SECTION
4.9.    Setoff.    Each Credit Party may, upon the occurrence and during the continuance of any Event of
Default described in clauses (a) through (d) of  Section 8.1.9 or, with the consent of the Required
Lenders, upon the occurrence and during the continuance of any other Event of Default,
appropriate and apply to the payment of the Obligations owing to it (whether or not then due), and (as security for such Obligations) the Borrower hereby grants to each Secured Party a continuing
security interest in, any and all balances, credits, deposits, accounts or moneys of the Borrower then or thereafter maintained with such Secured Party (excluding deposits held by the Borrower as a
fiduciary 

43

 

for
others); provided that any such appropriation and application shall be subject to the provisions of  Section 4.8. Each Credit Party agrees promptly to
notify the Borrower and the Administrative Agent after any such appropriation and application
made by such Credit Party; provided that the failure to give such notice shall not affect the validity of such setoff and application. The rights of
each Credit Party under this Section are in addition to other rights and remedies (including other rights of setoff under applicable law or otherwise) which such Credit Party may have. 

        SECTION
4.10.    Replacement of Lenders.    If any Lender (an "Affected
Lender") (a) fails to vote in favor of a modification to this Agreement that is otherwise approved by the requisite number of Lenders (which, in the case of a
modification requiring the consent of all Lenders or all Lenders of a particular class, means all Lenders or all Lenders of such class, as applicable, other than such non-consenting
Lender), (b) makes a demand upon the Borrower for (or if the Borrower is otherwise required to pay) amounts pursuant to Section 4.3, 4.5
or 4.6 (and the payment of such
amounts are, and are likely to continue to be, more onerous in the reasonable judgment of the Borrower than with respect to the other Lenders) or (c) gives notice pursuant to  Section 4.1
requiring a conversion of such Affected Lender's LIBO Rate Loans to Base Rate Loans or suspending such Lender's obligation to make
Loans as, or to convert Loans into, LIBO Rate Loans, the Borrower may, within 30 days of the failure to consent or receipt by the Borrower of such demand or notice, as the case may be, give
notice (a "Replacement Notice") in writing to the Administrative Agent and such Affected Lender of its intention to replace such Affected Lender with a
financial institution or other Person (a "Substitute Lender") designated in such Replacement Notice;  provided that no Replacement Notice may be given by
the Borrower if (i) such replacement conflicts with any applicable law or regulation,
(ii) any Event of Default shall have occurred and be continuing at the time of such replacement, (iii) such Lender consents to such modification, or, if applicable, (iv) prior to
any such replacement, such Lender shall have taken any necessary action under Section 4.5 or 4.6
(if applicable) so as to eliminate the continued need for payment of amounts owing pursuant to Section 4.5 or  4.6. If the Administrative Agent shall,
in the exercise of its reasonable discretion and within 30 days of its receipt of such Replacement
Notice, notify the Borrower and such Affected Lender in writing that the Substitute Lender is satisfactory to the Administrative Agent (such consent not to be unreasonably withheld and not being
required where the Substitute Lender is already a Lender or an Affiliate of a Lender), then such Affected Lender shall, subject to the payment of any amounts due pursuant to  Section 4.4, assign, in
accordance with Section 10.11.1, all of its Commitments, Loans,
Notes (if any) and other rights and obligations under this Agreement and all other Loan Documents (including Reimbursement Obligations, if applicable) to such Substitute Lender;  provided that
(i) such assignment shall be made pursuant to a Lender Assignment Agreement, (ii) the purchase price paid by such Substitute
Lender shall be in the amount of such Affected Lender's Loans and its Percentage of outstanding Reimbursement Obligations, together with all accrued and unpaid interest and fees in respect thereof,
plus all other amounts (including the amounts demanded and unreimbursed under Sections 4.3, 4.5 and 4.6), owing to such Affected Lender hereunder and
(iii) the Borrower shall pay to the Affected Lender and the Administrative Agent all reasonable out-of-pocket expenses incurred by the Affected Lender and the
Administrative Agent in connection with such assignment and assumption (including the processing fees described in Section 10.11.1). Upon the
effective date of an assignment described above, the Substitute Lender shall become a "Lender" for all purposes under the Loan Documents. 

        SECTION
4.11.    Mitigation of Claims.    Each Lender agrees that if it makes any demand for payment under  Section 4.3, 4.4,
4.5, or 4.6, or if any adoption or change of the type described in  Section 4.1 shall occur with respect to it, it will use
reasonable efforts (consistent with its internal policy and legal and regulatory
restrictions and so long as such efforts would not be disadvantageous to it, as determined in its sole discretion) to designate a different lending office if the making of such a designation would
reduce or obviate the need for the Borrower to make payments under Section 4.3, 4.4, 4.5, or 4.6,
or would eliminate or reduce the effect of any adoption or change described in Section 4.1. 

44

  

 
 

ARTICLE V
  
    CONDITIONS TO EFFECTIVENESS    
    

        SECTION
5.1.    Initial Credit Extension.    The obligations of the Lenders and, if applicable, the applicable Issuer
to fund the initial Credit Extension hereunder shall be subject to the prior or concurrent satisfaction of each of the conditions precedent set forth in this Article. 

        SECTION
5.1.1.    Resolutions, etc.    The Administrative Agent shall have received from each Obligor, as applicable,
(i) a copy of a good standing certificate (to the extent applicable), dated a date reasonably close to the Amendment Effective Date, for each such Person and (ii) a certificate, dated
the Amendment Effective Date duly executed and delivered by such Person's Secretary or Assistant Secretary, managing member or general partner, as applicable, as to 

        (a)   resolutions
of each such Person's Board of Directors (or other managing body, in the case of an entity other than a corporation) then in full force and effect
authorizing, to the extent relevant, all aspects of the Transaction applicable to such Person and the execution, delivery and performance of each Loan Document to be executed by such Person and the
transactions contemplated hereby and thereby; 

        (b)   the
incumbency and signatures of those of its officers, managing member or general partner, as applicable, authorized to act with respect to each Loan Document to be
executed by such Person; and 

        (c)   the
full force and validity of each Organic Document of such Person and copies thereof; 

upon
which certificates each Credit Party may conclusively rely until it shall have received a further certificate of the Secretary, Assistant Secretary, managing member or general partner, as
applicable, of any such Person canceling or amending the prior certificate of such Person. 

        SECTION
5.1.2.    Amendment Effective Date Certificate.    The Administrative Agent shall have received the Amendment
Effective Date Certificate, dated the Amendment Effective Date and duly executed and delivered by an Authorized Officer of the Borrower, in which certificate the Borrower shall agree and acknowledge
that the statements made therein shall be deemed to be true and correct representations and warranties of the Borrower as of such date, and, at the time each such certificate is delivered, such
statements shall in fact be true and correct. All documents and agreements required to be appended to the Amendment Effective Date Certificate shall be in form and substance satisfactory to the Lead
Arrangers. 

        SECTION
5.1.3.    Consummation of Transaction.    The Lead Arrangers shall have received evidence reasonably
satisfactory to them that all actions necessary to consummate the Transaction shall have been taken in accordance with all applicable law and in accordance with the terms of each applicable
Transaction Document, without amendment or waiver of any material provision thereof. The Administrative Agent shall have received copies of the Transaction Documents (as well as all other closing
documentation executed or delivered in connection therewith) executed and delivered by the parties thereto, each of which shall be in full force and effect. All aspects of the Transaction shall have
been, or substantially contemporaneously with the making of the initial Loans will be, consummated. 

        SECTION
5.1.4.    Delivery of Notes.    The Administrative Agent shall have received, for the account of each Lender
that has requested a Note, such Lender's Notes duly executed and delivered by an Authorized Officer of the Borrower. 

        SECTION
5.1.5.    Financial Information, etc.    The Administrative Agent shall have received, 

        (a)   audited
consolidated financial statements of Parent and its Subsidiaries as at December 31, 2004; 

45

 

        (b)   a  pro forma consolidated balance sheet of Parent and its Subsidiaries (together with a consolidating schedule thereto
for
the Borrower and its Subsidiaries) as of the most recently ended calendar month for which financial statements are available certified by the chief financial or accounting Authorized Officer of the
Borrower, giving effect to the consummation of the Transaction and all the transactions contemplated by this Agreement, which shall be satisfactory to the Administrative Agent; and 

        (c)   financial
projections for the five years following the Amendment Effective Date. 

        SECTION
5.1.6.    Solvency, etc.    The Administrative Agent shall have received a solvency certificate, in
substantially the form of Exhibit K, duly executed and delivered by the chief financial or accounting Authorized Officer of the Borrower, dated
as of the Amendment Effective Date. 

        SECTION
5.1.7.    Approvals.    All material governmental, shareholder and third party consents and approvals
necessary in connection with the consummation of Transaction, and the related financings and other transactions contemplated hereby and thereby, shall have been duly obtained and all applicable
waiting periods shall have expired without any action being taken by any competent authority that could restrain, prevent or impose any materially adverse conditions on the Transaction or the
continued operations of Parent, the Borrower or any of their respective Subsidiaries. 

        SECTION
5.1.8.    Compliance with Applicable Laws.    The Lead Arrangers shall be reasonably satisfied that the
Transaction and the Borrowings under this Agreement are in compliance in all material respects with all applicable laws and regulations (including F.R.S. Board Regulations T, U and X). 

        SECTION
5.1.9.    Rating of Loans.    The Loans shall have been rated by S&P and Moody's. 

        SECTION
5.1.10.    Opinions of Counsel.    The Administrative Agent shall have received opinions, dated the Amendment
Effective Date and addressed to the Lead Arrangers and all Lenders, from 

        (a)   Cahill
Gordon & Reindel LLP, New York counsel to the Obligors, in form and substance reasonably satisfactory to the Lead Arrangers; and 

        (b)   Akin
Gump Strauss Hauer & Feld LLP, Texas counsel to the Obligors, in form and substance reasonably satisfactory to the Lead Arrangers. 

        SECTION
5.1.11.    Fees, Expenses, etc.    Each party to each Fee Letter shall have received for their own account, or
for the account of each Lender, as the case may be, all fees, costs and expenses due and payable pursuant to Section 3.3 and, if then invoiced,  Section 10.3. 

        SECTION
5.1.12.    Affirmation and Consent.    Each Subsidiary Guarantor shall have duly authorized, executed,
acknowledged and delivered to the Administrative Agent the Affirmation and Consent, dated as of the Amendment Effective Date. 

        SECTION
5.2.    All Credit Extensions.    The obligation of each Lender and each Issuer to make any Credit Extension
shall be subject to the satisfaction of each of the conditions precedent set forth below. 

        SECTION
5.2.1.    Compliance with Warranties, No Default, etc.    Both before and after giving effect to any Credit
Extension (but, if any Default of the nature referred to in Section 8.1.5 shall have occurred with respect to any other Indebtedness, without
giving effect to the application, directly or indirectly, of the proceeds thereof) the following statements shall be true and correct: 

        (a)   the
representations and warranties set forth in each Loan Document shall, in each case, be true and correct in all material respects with the same effect as if then made
(unless stated to relate solely to an earlier date, in which case such representations and warranties shall be true and correct in all material respects as of such earlier date); and 

46

 

        (b)   no
Default shall have then occurred and be continuing. 

        SECTION
5.2.2.    Credit Extension Request, etc.    Subject to  Section 2.3.2, the Administrative Agent shall have
received a Borrowing Request if Loans are being requested, or an Issuance Request if a Letter
of Credit is being requested or extended. Each of the delivery of a Borrowing Request or Issuance Request and the acceptance by the Borrower of the proceeds of such Credit Extension shall constitute a
representation and warranty by the Borrower that on the date of such Credit Extension (both immediately before and after giving effect to such Credit Extension and the application of the proceeds
thereof) the statements made in Section 5.2.1 are true and correct in all material respects. 

        SECTION
5.2.3.    Satisfactory Legal Form.    All documents executed or submitted pursuant hereto by or on behalf of
any Obligor shall be reasonably satisfactory in form and substance to the Administrative Agent and its counsel, and the Administrative Agent and its counsel shall have received all information,
approvals, documents or instruments as the Administrative Agent or its counsel may reasonably request in connection with such Credit Extension. 

 
 

ARTICLE VI
  
    REPRESENTATIONS AND WARRANTIES    
    

        In order to induce each Credit Party to enter into this Agreement and to make Credit Extensions hereunder, the Borrower represents and warrants to each Credit
Party on the Amendment Effective Date and on each other date required pursuant to the terms of any Loan Document as set forth in this Article. 

        SECTION
6.1.    Organization, etc.    Each Obligor is validly organized and existing and in good standing (to the
extent applicable) under the laws of the state or jurisdiction of its incorporation or organization, is duly qualified to do business and is in good standing as a foreign entity in each jurisdiction
where the nature of its business requires such qualification, except where the failure to be so qualified could not reasonably be expected to have a Material Adverse Effect, and has full power and
authority and holds all requisite governmental licenses, permits and other approvals to enter into and perform its Obligations under each Loan Document to which it is a party, to own and hold under
lease its property and to conduct its business substantially as currently conducted by it, except where the failure to do so could not reasonably be expected to have a Material Adverse Effect. 

        SECTION
6.2.    Due Authorization, Non-Contravention, etc.    The execution, delivery and performance by
each Obligor of each Loan Document executed or to be executed by it, each Obligor's participation in the consummation of all aspects of the Transaction, and the execution, delivery and performance by
the Borrower or (if applicable) any Obligor of the agreements executed and delivered by it in connection with the Transaction are in each case within such Person's powers, have been duly authorized by
all necessary action, and do not 

        (a)   contravene
any (i) Obligor's Organic Documents, (ii) court decree or order binding on or affecting any Obligor or (iii) law or governmental
regulation binding on or affecting any Obligor; or 

        (b)   result
in (i) or require the creation or imposition of, any Lien on any Obligor's properties (except as permitted by this Agreement) or (ii) a default
under any material contractual restriction binding on or affecting any Obligor. 

        SECTION
6.3.    Government Approval, Regulation, etc.    No authorization or approval or other action by, and no
notice to or filing with, any Governmental Authority (other than those that have been, or on the Amendment Effective Date will be, duly obtained or made and which are, or on the Amendment Effective
Date will be, in full force and effect) is required for the consummation of the Transaction or the due execution, delivery or performance by any Obligor of any Loan Document to 

47

 

which
it is a party, or for the due execution, delivery and/or performance of Transaction Documents, in each case by the parties thereto or the consummation of the Transaction. Neither the Borrower
nor any of its Subsidiaries is an "investment company" within the meaning of the Investment Company Act of 1940, as amended, or a "holding company", or a "subsidiary company" of a "holding company",
or an "affiliate" of a "holding company" or of a "subsidiary company" of a "holding company", within the meaning of the Public Utility Holding Company Act of 1935, as amended. 

        SECTION
6.4.    Validity, etc.    Each Loan Document and each Transaction Document that constitutes a contract to
which any Obligor is a party, assuming due authorization, execution and delivery by the other parties thereto, constitutes the legal, valid and binding obligations of such Obligor, enforceable against
such Obligor in accordance with their respective terms (except, in any case, as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization or similar laws affecting
creditors' rights generally and by principles of equity). 

        SECTION
6.5.    Financial Information.    The financial statements of Parent and its respective Subsidiaries furnished
to the Administrative Agent and each Lender pursuant to clause (a) of Section 5.1.5 have
been prepared in accordance with GAAP consistently applied, and present fairly in all material respects the consolidated financial condition of the Persons covered thereby as at the dates thereof and
the results of their operations for the periods then ended. All balance sheets, all statements of income and of cash flow and all other financial information of Parent and its Subsidiaries and/or the
Borrower and its Subsidiaries, as applicable, furnished pursuant to Section 7.1.1 have been and will for periods following the Amendment
Effective Date be prepared in accordance with GAAP consistently applied and do or will present fairly in all material respects the consolidated financial condition of the Persons covered thereby as at
the dates thereof and the results of their operations for the periods then ended. 

        SECTION
6.6.    No Material Adverse Change; Solvency.    There has been no material adverse change in the condition
(financial or otherwise), business, operations, assets, liabilities (contingent or otherwise) or properties of the Borrower and its Subsidiaries, taken as a whole, since December 31, 2004.
Parent, the Borrower and the Subsidiary Guarantors, taken as a whole on a consolidated basis, both before and after giving effect to each Credit Extension, are Solvent. 

        SECTION
6.7.    Litigation, Labor Controversies, etc.    There is no pending or, to the knowledge of the Borrower or
any of its Subsidiaries, threatened litigation, action, proceeding or labor controversy 

        (a)   except
as disclosed in Item 6.7 of the Disclosure Schedule, affecting the Borrower, any of its Subsidiaries or any other Obligor, or any of their respective properties,
businesses, assets or revenues, which could reasonably be expected to have a Material Adverse Effect, and no materially adverse development has occurred in any labor controversy, litigation,
arbitration or governmental investigation or proceeding disclosed in Item 6.7; or 

        (b)   which
purports to affect the legality, validity or enforceability of any Loan Document, the Transaction Documents or the Transaction. 

        SECTION
6.8.    Subsidiaries.    The Borrower has no Subsidiaries, except those Subsidiaries which are identified in  Item 6.8 of the Disclosure Schedule, or which are permitted to have been organized or acquired in accordance with Sections
7.2.5 or 7.2.9. 

        SECTION
6.9.    Ownership of Properties.    The Borrower and each of its Subsidiaries owns (i) in the case of
owned real property, good and indefeasible fee title to, and (ii) in the case of owned personal property, good and valid title to, or, in the case of leased real or personal property, valid and
enforceable leasehold interests (as the case may be) in, all of its properties and assets, tangible and intangible, of any nature whatsoever, free and clear in each case of all Liens or claims, except
for Liens permitted pursuant to Section 7.2.3 except where the failure to do so could not reasonably be expected to have a Material Adverse
Effect. The real property listed in Item 6.9(a) of the Disclosure Schedule 

48

 

constitutes,
as of the Amendment Effective Date, all of the real property owned or leased by the Borrower and each of its Subsidiaries as of the Amendment Effective Date. 

        SECTION
6.10.    Taxes.    The Borrower and each of its Subsidiaries has (i) filed all material Tax Returns and
reports required by law to have been filed by it and all such Tax Returns and reports are true, correct and complete in all material respects and (ii) has paid all material Taxes thereby shown
to be due and owing, except any such Taxes which are being diligently contested in good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP shall have been set
aside on the books of the Borrower or the applicable Subsidiary. 

        SECTION
6.11.    Pension and Welfare Plans.    During the twelve-consecutive-month period prior to the Amendment
Effective Date and prior to the date of any Credit Extension hereunder, no steps have been taken to terminate any Pension Plan, and no contribution failure has occurred with respect to any Pension
Plan sufficient to give rise to a Lien under Section 302(f) of ERISA on the assets of the Borrower or any of its Subsidiaries. No condition exists or event or transaction has occurred with
respect to any Pension Plan which could reasonably be expected to result in the incurrence by the Borrower or any member of the Controlled Group of any material liability, fine or penalty that would
have a Material Adverse Effect. 

        SECTION
6.12.    Environmental Warranties.    Except as set forth in Item 6.12 of the Disclosure Schedule: 

        (a)   the
Borrower and each of its Subsidiaries are, and for the past three years have been, in compliance with all Environmental Laws except such noncompliance that,
individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect; 

        (b)   there
are no pending or, to the knowledge of the Borrower, threatened (i) claims, complaints, notices or requests for information received by the Borrower or any
of its Subsidiaries with respect to any alleged violation of any Environmental Law, or (ii) complaints, notices or inquiries to the Borrower or any of its Subsidiaries with respect to potential
liability under any Environmental Law, in each case, that could, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect; 

        (c)   there
have been no Releases of Hazardous Materials at, on, from or under any property now or previously owned, operated or leased by the Borrower or any of its
Subsidiaries that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect; 

        (d)   the
Borrower and its Subsidiaries have been issued and are in material compliance with all material permits, certificates, approvals, licenses and other authorizations
under Environmental Laws that are necessary for their businesses as currently conducted, in each case, except that individually or in the aggregate, could not reasonably be expected to have a Material
Adverse Effect; 

        (e)   other
than properties identified as "no further remedial action planned" or as having similar status, no property now or, to the knowledge of the Borrower, previously
owned, operated or leased by the Borrower or any of its Subsidiaries is listed or proposed for listing (with respect to owned property only) on the National Priorities List pursuant to CERCLA, on the
CERCLIS or on any similar published, final state list of sites requiring investigation or clean-up, in each case, that could individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect; 

        (f)    there
are no underground storage tanks, active or abandoned, including petroleum storage tanks, on or under any property now or previously owned, operated, used or
leased by the Borrower or any of its Subsidiaries that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect; 

49

 

        (g)   to
the knowledge of the Borrower, neither the Borrower nor any Subsidiary has disposed of, whether directly or indirectly, any Hazardous Material in a manner which could
reasonably be expected to lead to claims against the Borrower or such Subsidiary for any investigation or cleanup work, damage to natural resources or personal injury, or any other liability under
Environmental Laws, including claims under CERCLA, that could reasonably be expected to have a Material Adverse Effect; 

        (h)   there
are no polychlorinated biphenyls, hexavalent chromium or asbestos present at any property now or previously owned, operated or leased by the Borrower or any
Subsidiary that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect; and 

        (i)    no
conditions exist at, on or under any property now or, to the knowledge of the Borrower, previously owned, operated or leased by the Borrower, any of its Subsidiaries
or any predecessor thereof that, with or without the passage of time, or the giving of notice or both, could reasonably be expected to give rise to liability under any Environmental Law of the
Borrower or any of its Subsidiaries, in each case, that could reasonably be expected to have a Material Adverse Effect. 

        SECTION
6.13.    Accuracy of Information.    None of the factual information (excluding projections) heretofore or
contemporaneously furnished in writing to any Credit Party by or on behalf of any Obligor in connection with any Loan Document or any transaction contemplated hereby (including the Transaction)
contains any untrue statement of a material fact, or omits to state any material fact necessary to make any information therein, under the circumstances under which it is made, not misleading, and no
factual information (excluding projections) hereafter furnished in connection with any Loan Document by or on behalf of any Obligor to any Credit Party will contain any untrue statement of a material
fact or will omit to state any material fact necessary to make any information not misleading on the date as of which such information is dated or certified. All projections that have been or will be
made available to any Credit Party by the Borrower have been or will be prepared in good faith based upon reasonable assumptions (it being understood that such projections are subject to significant
uncertainties and contingencies beyond the Borrower's control). 

        SECTION
6.14.    Regulations T, U and X.    No Obligor is engaged in the business of extending credit for the purpose
of buying or carrying margin stock, and no proceeds of any Credit Extension will be used to purchase or carry margin stock or otherwise for a purpose which violates, or would be inconsistent with,
F.R.S. Board Regulations T, U or X. Terms for which meanings are provided in F.R.S. Board Regulations T, U or X or any regulations substituted therefor, as from time to time in effect, are used in
this Section with such meanings. 

        SECTION
6.15.    Absence of Any Undisclosed Liabilities.    There are no material liabilities of any Obligor of any
kind whatsoever, whether accrued, contingent, absolute, determined, determinable or otherwise, other than those liabilities provided for or disclosed in the most recently delivered financial
statements or those liabilities that have been disclosed to the Lead Arrangers or are otherwise not prohibited from being incurred hereunder. 

        SECTION
6.16.    Status of Obligations as Senior Indebtedness, etc.    The Borrower has the power and authority to
incur the Subordinated Debt as provided for under the Subordinated Debt Documents applicable thereto and has duly authorized, executed and delivered the Subordinated Debt Documents applicable to such
Subordinated Debt. The subordination provisions of the Subordinated Debt contained in the Subordinated Debt Documents are enforceable against the holders of the Subordinated Debt by the holder of any
"Senior Indebtedness" or similar term referring to the Obligations (as defined in the Subordinated Debt Documents). All Obligations, including those to pay principal of and interest (including
post-petition interest, whether or not allowed as a claim under bankruptcy or similar laws) on the Loans and Reimbursement Obligations, and fees and expenses in 

50

 

connection
therewith, constitute "Senior Indebtedness" or similar term relating to the Obligations (as defined in the Subordinated Debt Documents) and all such Obligations are entitled to the benefits
of the subordination created by the Subordinated Debt Documents. The Borrower acknowledges that the Administrative Agent, each Lender and each Issuer is entering into this Agreement and is extending
its Commitments in reliance upon the subordination provisions of the Subordinated Debt Documents. 

 
 

ARTICLE VII
  
    COVENANTS    
    

        SECTION
7.1.    Affirmative Covenants.    The Borrower agrees with each Credit Party that on and after the Amendment
Effective Date until the Termination Date has occurred, the Borrower will, and will cause its Subsidiaries to, perform or cause to be performed the obligations set forth below. 

        SECTION
7.1.1.    Financial Information, Reports, Notices, etc.    The Borrower will furnish the Administrative Agent
(which will distribute to each Lender) copies of the following financial statements, reports, notices and information: 

        (a)   as
soon as available and in any event within the earlier of (x) 45 days after the end of each of the first three Fiscal Quarters of each Fiscal Year and
(y) if Parent or the Borrower is a public reporting company at such time, such earlier date as the SEC requires the filing of such information (or if Parent or the Borrower is required to file
such information on a Form 10-Q with the SEC, promptly following such filing), an unaudited consolidated balance sheet of the Borrower and its Subsidiaries as of the end of such
Fiscal Quarter and consolidated statements of income and cash flow of the Borrower and its Subsidiaries for such Fiscal Quarter and for the period commencing at the end of the previous Fiscal Year and
ending with the end of such Fiscal Quarter, and including, in comparative form the figures for the corresponding Fiscal Quarter in, and year to date portion of, the immediately preceding Fiscal Year,
in each case, certified as in accordance with GAAP consistently applied (subject to normal year-end audit adjustments and the omission of footnotes for the monthly financial statements)
presenting fairly in all material respects the consolidated financial condition of the Persons covered thereby as at the date thereof and the results of their operations for the periods then ended by
the chief financial or accounting Authorized Officer of the Borrower (collectively, the "Unaudited Quarterly Financial Statements");  provided that in the
event Parent files quarterly financial statements with the SEC, the Borrower may elect to deliver consolidated unaudited quarterly
financial statements for Parent and its Subsidiaries in lieu of Unaudited Quarterly Financial Statements for the Borrower so long as such financial statements are accompanied by a consolidating
schedule thereto for the Borrower and its Subsidiaries delivered to the Administrative Agent together therewith; 

        (b)   as
soon as available and in any event within the earlier of (x) 90 days after the end of each Fiscal Year and (y) if Parent or the Borrower is a
public reporting company at such time, such earlier date as the SEC requires the filing of such information (or if Parent or the Borrower is required to file such information on a
Form 10-K with the SEC, promptly following such filing), a copy of the consolidated balance sheet of the Borrower and its Subsidiaries, and the related consolidated statements of
income and cash flow of the Borrower and its Subsidiaries for such Fiscal Year, setting forth in comparative form the figures for the immediately preceding Fiscal Year, audited (without any
Impermissible Qualification) by nationally recognized independent public accountants (collectively, the "Audited Financial Statements");  provided that in
the event Parent is required or desires to file audited financial statements with the SEC, the Borrower may elect to deliver
consolidated audited financial statements for Parent and its Subsidiaries in lieu of Audited Financial Statements for the Borrower so long as such financial statements are accompanied by a
consolidating schedule for the Borrower and its Subsidiaries (which shall not be required to be audited) thereto delivered to the Administrative Agent together therewith; 

51

 

        (c)   concurrently
with the delivery of the financial information pursuant to clauses (a) and  (b) for each Fiscal Quarter ending after the Amendment Effective Date, a
Compliance Certificate, executed by the chief financial or accounting
Authorized Officer of the Borrower, showing (i) compliance with the financial covenants set forth in Section 7.2.4 for the period of four
consecutive Fiscal Quarters then ended (or such shorter period as has elapsed since the Amendment Effective Date), (ii) (A) the amount of Available Cash during such Fiscal Quarter and
Cumulative Distributable Cash at the end of such Fiscal Quarter and (B) the aggregate amount of Capital Expenditures and acquisitions, including any Permitted Acquisitions, financed with the
proceeds of Indebtedness permitted hereunder and identifying the clause of Section 7.2.2 that such Indebtedness is permitted under, and whether
or not such Indebtedness constitutes Revolving Loans, (iii) reasonably detailed calculations demonstrating compliance with Sections 7.2.2, 7.2.5,
7.2.6 and 7.2.10, (iv) the amount of Restricted Payments, if any, that the Borrower intends to pay to Parent pursuant to  clause (f)
 of Section 7.2.6 on the immediately succeeding date on which Parent's dividend
policy provides for the payment of a dividend (it being understood that the amount actually paid may differ from such amount reported), and (v) stating that no Default has occurred and is
continuing (or, if a Default has occurred, specifying the details of such Default and the action that the Borrower or an Obligor has taken or proposes to take with respect thereto); 

        (d)   as
soon as possible and in any event within five days after the Borrower or any other Obligor obtains knowledge of the occurrence of a Default, a statement of an
Authorized Officer of the Borrower setting forth details of such Default and the action which the Borrower or such Obligor has taken and proposes to take with respect thereto; 

        (e)   as
soon as possible and in any event within five days after the Borrower or any other Obligor obtains knowledge of (i) the occurrence of any material adverse
development with respect to any litigation, action, proceeding or labor controversy described in Item 6.7 of the Disclosure Schedule, (ii) the commencement of any litigation, action, proceeding
or labor controversy of the type and materiality described in Section 6.7, or (iii) any event that could reasonably be expected to have a
Material Adverse Effect, notice thereof and, to the extent any Lead Arranger reasonably requests, copies of all documentation relating thereto; 

        (f)    promptly
after the sending or filing thereof, copies of all reports, notices, prospectuses and registration statements which any Obligor files with the SEC or any
national securities exchange; 

        (g)   promptly
upon becoming aware of (i) the institution of any steps by any Person to terminate any Pension Plan, (ii) the failure to make a required
contribution to any Pension Plan if such failure is sufficient to give rise to a Lien under Section 302(f) of ERISA on the assets of the Borrower or any of its Subsidiaries, (iii) the
taking of any action with respect to a Pension Plan which could reasonably be expected to result in the requirement that any Obligor furnish a bond or other security to the PBGC or such Pension Plan,
or (iv) the occurrence of any event with respect to any Pension Plan which could reasonably be expected to result in the incurrence by any Obligor of any material liability, fine or penalty,
notice thereof and copies of all documentation relating thereto; 

        (h)   promptly
upon receipt thereof, copies of all "management letters" submitted to the Borrower or any other Obligor by the independent public accountants referred to in  clause (b) in connection with each audit
made by such accountants; 

52

  

        (i)    promptly
following the mailing or receipt of any notice or report delivered under the terms of any Subordinated Debt, copies of such notice or report; and 

        (j)    such
other financial and other information as any Lender or Issuer through the Administrative Agent may from time to time reasonably request (including information and
reports in such detail as the Administrative Agent may reasonably request with respect to the terms of and information provided pursuant to the Compliance Certificate). 

        SECTION
7.1.2.    Maintenance of Existence; Compliance with Laws, etc.    The Borrower will, and will cause each of
its Subsidiaries to, preserve and maintain its legal existence (except as otherwise permitted by Section 7.2.9), and comply in all material
respects with (i) the terms of (and shall perform or cause the applicable Subsidiary to perform) its obligations under all material agreements to which it is a party, except where the failure
to do so could not reasonably be expected to have a Material Adverse Effect and (ii) all applicable laws, rules, regulations and orders, including the payment (before the same become
delinquent), of all material Taxes, imposed upon the Borrower or its Subsidiaries or upon their property except to the extent being diligently contested in good faith by appropriate proceedings and
for which adequate reserves in accordance with GAAP have been set aside on the books of the Borrower or such Subsidiary, as applicable, except where the failure to do so could not reasonably be
expected to have a Material Adverse Effect. 

        SECTION
7.1.3.    Maintenance of Properties.    The Borrower will, and will cause each of its Subsidiaries to,
maintain, preserve, protect and keep its and their respective material properties in good repair, working order and condition (ordinary wear and tear excepted), and make necessary repairs, renewals
and replacements so that the business carried on by the Borrower and its Subsidiaries may be properly conducted at all times, unless the Borrower or such Subsidiary determines in good faith that the
continued maintenance and/or preservation of such property is no longer economically desirable, necessary or useful to the business of the Borrower or any of its Subsidiaries or the Disposition of
such property is otherwise permitted by Sections 7.2.9 or 7.2.10.

        SECTION
7.1.4.    Insurance.    The Borrower will, and will cause each of its Subsidiaries to maintain: 

        (a)   insurance
on its property with financially sound and reputable insurance companies against loss and damage in at least the amounts (and with only those deductibles)
customarily maintained, and against such risks (including fire and other risks insured against by extended coverage) as are typically insured against in the same general area, by Persons of comparable
size engaged in the same or similar business as the Borrower and its Subsidiaries; 

        (b)   liability
insurance in customary amounts for similar companies; 

        (c)   all
worker's compensation, employer's liability insurance or similar insurance as may be required under the laws of any state or jurisdiction in which it may be engaged
in business; and 

        (d)   flood
insurance in customary amounts for similar companies if any improvements located on any Mortgaged Property are located within a "Flood Hazard Area" in any Flood
Insurance Rate Map published by the Federal Emergency Management Agency (or successor agency) and otherwise comply with the National Flood Insurance Program as set forth in the Flood Disaster
Prevention Act of 1975, as amended from time to time. 

Without
limiting the foregoing, all insurance policies covering collateral required pursuant to this Section shall name the Administrative Agent on behalf of the Secured Parties as mortgagee or lender
loss payee, as the case may be (in the case of property insurance), or additional insured and loss payee (in the case of liability insurance), as applicable, and provide that no cancellation or
modification of the policies will be made without at least thirty days' prior written notice (or such shorter period as the Administrative Agent may approve) to the Administrative Agent. 

53

 

        SECTION
7.1.5.    Books and Records.    The Borrower will, and will cause each of its Subsidiaries to, keep books and
records in accordance with GAAP which accurately reflect in all material respects all of its business affairs and transactions and permit each Credit Party or any of their respective representatives,
at reasonable times and intervals upon reasonable notice to the Borrower, to visit each Obligor's offices, to discuss such Obligor's financial matters with its officers and members of management, and
its independent public accountants (and the Borrower hereby authorizes such independent public accountant to discuss each Obligor's financial matters with each Credit Party or their representatives)
and to examine (and photocopy extracts from) any of the Borrower's books and records. The Borrower shall pay any fees of such independent public accountant incurred in connection with any Credit
Party's exercise of its rights pursuant to this Section. 

        SECTION
7.1.6.    Environmental Law Covenant.    The Borrower will, and will cause each of its Subsidiaries to, 

        (a)   use
and operate all of its and their facilities and properties in material compliance with all Environmental Laws, keep all material permits, approvals, certificates,
licenses and other authorizations relating to environmental matters in effect and remain in material compliance therewith, handle all
Hazardous Materials in material compliance with all applicable Environmental Laws, take timely action to resolve any material non-compliance with or material potential liability under
Environmental Laws and keep its owned property free of any material Lien imposed by any Environmental Law (unless such non-compliance, liability or Lien is being contested in good faith
and consistent with GAAP); and 

        (b)   promptly
notify the Administrative Agent of any environmental matter involving a potential loss to the Borrower or any of its Subsidiaries of greater than $1,000,000,
individually or $2,500,000 in the aggregate and promptly provide to the Administrative Agent upon its request any written claim, complaint, report, notice, inquiry or other document relating thereto. 

        SECTION
7.1.7.    Use of Proceeds.    The Borrower will apply the proceeds of the Credit Extensions as follows: 

        (a)   in
the case of the Initial Term Loans, (i) to consummate the Refinancing (ii) to redeem or repay all or a portion of the Subordinated Notes and
(iii) to pay fees, costs and expenses in connection therewith, with this Agreement and the Planned IPO; 

        (b)   in
the case of the Revolving Loans, for working capital and general corporate purposes of the Borrower and the Subsidiary Guarantors, including Permitted Acquisitions
and Restricted Payments; 

        (c)   in
the case of the Swing Line Loans and Letters of Credit, for working capital and general corporate purposes and Restricted Payments of the Borrower and the Subsidiary
Guarantors; and 

        (d)   in
the case of the Incremental Term Loans, to finance Permitted Acquisitions (including the repayment of related Indebtedness of the acquired entity that will not be
assumed by the Borrower or its Subsidiaries and to pay the related transaction fees and expenses), make Capital Expenditures and to refinance Indebtedness. 

        SECTION
7.1.8.    Future Guarantors, Security, etc.    The Borrower will, and will cause each U.S. Subsidiary to,
execute any documents, Filing Statements, agreements and instruments, and take all further action (including filing Mortgages with respect to any real property having a fair market value of at least
$1,000,000) that may be required under applicable law, or that the Administrative Agent may reasonably request, in order to effectuate the transactions contemplated by the Loan Documents and in order
to grant, preserve, protect and perfect the validity and first priority (subject to (including as to priority) Liens permitted by Section 7.2.3)
of the Liens created or intended to be created by the Loan 

54

 

Documents.
The Borrower will cause any subsequently acquired or organized U.S. Subsidiary to execute a supplement to the Subsidiary Guaranty and each other applicable Loan Document pursuant to which
such U.S. Subsidiary grants to the Administrative Agent in favor of the Secured Parties a security interest in, or Mortgage on, substantially all of its owned assets. In addition, from time to time,
the Borrower will, at its cost and expense, promptly secure the Obligations by pledging or creating, or causing to be pledged or created, perfected Liens with respect to such of its assets and
properties as the Administrative Agent or the Required Lenders shall, in their sole discretion and at any time, reasonably designate, provided that
neither the Borrower nor its U.S. Subsidiaries shall be required to pledge more than 65% of the Voting Securities of any first-tier Foreign Subsidiary or any of the Voting Securities of
any non-first-tier Foreign Subsidiary. Such Liens will be created under the Loan Documents in form and substance reasonably satisfactory to the Administrative Agent, and the
Borrower shall deliver or cause to be delivered to the Administrative Agent all such instruments and documents (including legal opinions, title insurance policies and lien searches) as the
Administrative Agent shall reasonably request to evidence compliance with this Section. Notwithstanding anything to the contrary in this Section, so long as no Event of Default has occurred and is
continuing, the Borrower shall not be required to deliver a Foreign Pledge Agreement with respect to a Foreign Subsidiary unless such Foreign Subsidiary is a Significant Subsidiary. The Borrower
hereby agrees that it will within 60 days after the Amendment Effective Date, deliver amendments to the existing Mortgages necessary to reflect that such Mortgages secure the Obligations, in
each case, in form and substance reasonably satisfactory to the Administrative Agent; provided that such time period may be extended with the consent of
the Administrative Agent. 

        SECTION
7.1.9.    Rating of Loans.    The Borrower will, and will cause each of its Subsidiaries to, use commercially
reasonable efforts to ensure that the Loans continue to be rated by S&P and Moody's or, in either case, another rating agency reasonably acceptable to the Lead Arrangers. 

        SECTION
7.2.    Negative Covenants.    The Borrower covenants and agrees with each Lender, each Issuer and the
Administrative Agent that on and after the Amendment Effective Date until the Termination Date has occurred, the Borrower will, and will cause its Subsidiaries to, perform or cause to be performed the
obligations set forth below. 

        SECTION
7.2.1.    Business Activities.    The Borrower will not, and will not permit any of its Subsidiaries to,
engage in any business activity except those business activities engaged in on the date of this Agreement and business activities that are reasonably related, ancillary or complementary thereto or a
reasonable extension, development or expansion thereof. 

        SECTION
7.2.2.    Indebtedness.    The Borrower will not, and will not permit any of its Subsidiaries to, create,
incur, assume or permit to exist any Indebtedness, other than: 

        (a)   Indebtedness
in respect of the Obligations; 

        (b)   [INTENTIONALLY
OMITTED]; 

        (c)   Indebtedness
existing as of the Amendment Effective Date which is identified in Item 7.2.2(c) of the Disclosure Schedule,
and refinancing of such Indebtedness in a principal amount not in excess of that which is outstanding on the Amendment Effective Date plus all
reasonable fees, expenses, accrued interest and any required premium in connection with such financing; 

        (d)   unsecured
Indebtedness (i) incurred in the ordinary course of business of the Borrower and its Subsidiaries (including open accounts extended by suppliers on
normal trade terms in connection with purchases of goods and services which are not overdue for a period of more than 90 days or, if overdue for more than 90 days, as to which a dispute
exists and adequate reserves in conformity with GAAP have been established on the books of the Borrower or such Subsidiary) and (ii) in respect of performance, surety or appeal bonds provided
in the ordinary course of 

55

 

business,
but excluding (in each case), Indebtedness incurred through the borrowing of money or Contingent Liabilities in respect thereof; 

        (e)   Indebtedness
(i) in respect of industrial revenue bonds or other similar governmental or municipal bonds, (ii) evidencing the deferred purchase price of
newly acquired property or incurred to finance the acquisition of equipment of the Borrower or its Subsidiaries (pursuant to purchase money mortgages or otherwise, whether owed to the seller or a
third party) used in the ordinary course of business of the Borrower or its Subsidiaries and any Indebtedness assumed in connection with such acquisition
(provided that such Indebtedness is incurred within 90 days of the acquisition of such property or equipment), (iii) in respect of
Capitalized Lease Liabilities and (iv) refinancing of Indebtedness referred to in clauses (i) through  (iii); provided that the aggregate amount of all Indebtedness outstanding pursuant to this  clause (e) shall not at any time exceed $10,000,000; 

        (f)    Indebtedness
of any Subsidiary owing to the Borrower or any other Subsidiary and Indebtedness of the Borrower owing to any Subsidiary, which Indebtedness 

          (i)  shall,
if payable to the Borrower or a Subsidiary Guarantor, and if evidenced by one or more promissory notes, such promissory notes shall be, duly executed and
delivered in pledge to the Administrative Agent pursuant to a Loan Document and if payable by the Borrower or any Subsidiary Guarantor, be subordinated to the Obligations on terms and conditions
similar to the terms and conditions of subordination of the Subordinated Notes; and 

         (ii)  if
incurred by a Subsidiary that is not a Subsidiary Guarantor owing to the Borrower or a Subsidiary Guarantor, shall not (when aggregated with the amount of
Investments made by the Borrower and the Subsidiary Guarantors in Subsidiaries that are not Subsidiary Guarantors under clause (e)(i) of  Section 7.2.5) exceed $5,000,000; 

        (g)   unsecured
Subordinated Debt of the Borrower evidenced by the Subordinated Notes outstanding on the Amendment Effective Date and unsecured Contingent Liabilities of the
Subsidiary Guarantors in respect of such Subordinated Debt, as set forth in the Subordinated Debt Documents and, in each case, refinancings (including the incurrence of Subordinated Debt which will be
set aside to fund a redemption of the Subordinated Debt to be refinanced within 60 days) of such Subordinated Debt and Contingent Liabilities; 

        (h)   Indebtedness
of a Person existing at the time such Person became a Subsidiary of the Borrower in connection with a Permitted Acquisition, but only if such Indebtedness
was not created or incurred in contemplation of such Person becoming a Subsidiary and the refinancing Indebtedness in respect thereof; 

        (i)    Hedging
Obligations entered into in the ordinary course of business and not for speculative purposes; 

        (j)    Indebtedness
arising from the honoring by a bank or other financial institution of a check, draft or similar instrument drawn against insufficient funds in the ordinary
course of business; provided that such Indebtedness is extinguished within five Business Days of its incurrence; 

        (k)   (A)
obligations in respect of performance bonds, bankers' acceptances, workers' compensation claims, surety, bid or appeal bonds, completion guarantees and payment
obligations in connection with self-insurance or similar obligations provided by the Borrower or any Subsidiary in the ordinary course of business and (B) obligations owed to
(including in respect of letters of credit for the benefit of) any Person in connection with workers' compensation, health, disability or other employee benefits or property, casualty or liability
insurance provided by such Person to the 

56

 

Borrower
or any Subsidiary pursuant to reimbursement or indemnification obligations to such Person, in each case, incurred in the ordinary course of business; 

        (l)    Indebtedness
arising from agreements of the Borrower or any Subsidiary of the Borrower providing for indemnification, adjustment of purchase price or similar
obligations, in each case, incurred or assumed in connection with the disposition of any business, assets or a Subsidiary, other than guarantees of Indebtedness incurred by any Person acquiring all or
any portion of such business, assets or a Subsidiary for the purpose of financing such acquisition; and 

        (m)  other
Indebtedness of the Borrower and its Subsidiaries (other than Indebtedness of Subsidiaries that are not Subsidiary Guarantors owing to the Borrower or Subsidiary
Guarantors) in an aggregate amount at any time outstanding not to exceed $15,000,000; 

provided that (A) no Indebtedness otherwise permitted by clauses (e) or  (f)(ii) shall be assumed,
created or otherwise incurred if a Default has occurred and is then continuing or would result therefrom and
(B) in the event that an item of Indebtedness (or any portion thereof) meets the criteria of more than one of the types of Indebtedness described above, the Borrower, in its sole discretion,
will classify such item of Indebtedness (or any portion thereof) at the time of incurrence and will only be required to include the amount and type of such Indebtedness in one of the above clauses. 

        SECTION
7.2.3.    Liens.    The Borrower will not, and will not permit any of its Subsidiaries to, create, incur,
assume or permit to exist any Lien upon any of its property (including Capital Securities of any Person), revenues or assets, whether now owned or hereafter acquired, except: 

        (a)   Liens
securing payment of the Obligations; 

        (b)   [INTENTIONALLY
OMITTED] 

        (c)   Liens
existing as of the Amendment Effective Date and disclosed in Item 7.2.3(c) of the Disclosure Schedule securing
Indebtedness described in clause (c) of Section 7.2.2, and refinancings of such
Indebtedness; provided that no such Lien shall encumber any additional property; 

        (d)   Liens
securing Indebtedness of the type permitted under clause (e) of  Section 7.2.2; provided that
(i) such Lien is granted within 90 days after such
Indebtedness is incurred, (ii) the Indebtedness secured thereby does not exceed the cost or the fair market value of the applicable property, improvements or equipment at the time of such
acquisition (or construction) and (iii) such Lien attaches only to the assets that are the subject of the Indebtedness referred to in such clause and proceeds thereof and additions and
accessions thereto; 

        (e)   Liens
securing Indebtedness permitted by clause (g) of  Section 7.2.2; provided that such Liens existed
prior to such Person becoming a Subsidiary, were
not created in anticipation thereof and attach only to the assets of such Person acquired; 

        (f)    Liens
in favor of carriers, warehousemen, mechanics, suppliers, repairmen, materialmen and landlords and other Liens imposed by law or granted in the ordinary course of
business for amounts not overdue or being diligently contested in good faith by appropriate proceedings; 

        (g)   Liens
incurred or deposits made in the ordinary course of business in connection with worker's compensation, unemployment insurance or other forms of governmental
insurance or benefits, or to secure performance of tenders, statutory obligations, bids, leases or other similar obligations (other than for borrowed money) entered into in the ordinary course of
business or to secure obligations on surety and appeal bonds or performance bonds; 

        (h)   judgment
Liens in existence for less than 45 days after the entry thereof or with respect to which execution has been stayed or the payment of which is covered in
full (subject to a customary deductible) by insurance maintained with reputable insurance companies and which do not otherwise result in an Event of Default under  Section 8.1.6; 

57

 

        (i)    easements,
rights-of-way, zoning restrictions, restrictive covenants, minor defects or irregularities in title and other similar encumbrances not
interfering in any material respect with the value or use of the property to which such Lien is attached; 

        (j)    Liens
for Taxes not at the time delinquent or thereafter payable without penalty or being diligently contested in good faith by appropriate proceedings and for which
adequate reserves in accordance with GAAP shall have been set aside on its books; 

        (k)   Liens
resulting from operation of law with respect to any judgments, awards or orders to the extent that such judgments, awards or orders do not cause or constitute a
Default under this Agreement; provided that if any such Liens are on Collateral, such Liens are being diligently contested in good faith by appropriate
proceedings; 

        (l)    Liens
in the form of licenses, leases or subleases granted or created by the Borrower or any Subsidiary, which licenses, leases or subleases do not interfere,
individually or in the aggregate, in any material respect with the business of the Borrower or such Subsidiary or individually or in the aggregate materially impair the use (for its intended purpose)
or the value of the property subject thereto; 

        (m)  Liens
on fixtures or personal property held by or granted to landlords pursuant to leases to the extent that such Liens are not yet due and payable; 

        (n)   Liens
in favor of the trustee under Section 7.07 of the indenture, dated as of July 31, 2003, as amended, supplemented, amended and restated or otherwise
modified in accordance with Section 7.2.11, in respect of the Subordinated Notes for the benefit of the trustee and not for the benefit of the
holders of the Subordinated Notes for fees, expenses and indemnities of the trustee; and 

        (o)   other
Liens securing obligations in an amount not to exceed $5,000,000 at any time outstanding. 

        SECTION
7.2.4.    Financial Condition and Operations.    The Borrower will not permit any of the events set forth
below to occur. 

        (a)   The
Borrower will not permit the Leverage Ratio as of the last day of any Fiscal Quarter ending after the Amendment Effective Date to be greater than 4.00:1.00. 

        (b)   The
Borrower will not permit the Interest Coverage Ratio as of the last day of any Fiscal Quarter ending after the Amendment Effective Date to be less than 3.25:1.00. 

        SECTION
7.2.5.    Investments.    The Borrower will not, and will not permit any of its Subsidiaries to, purchase,
make, incur, assume or permit to exist any Investment in any other Person, except: 

        (a)   Investments
existing on the Amendment Effective Date and identified in Item 7.2.5(a) of the Disclosure Schedule; 

        (b)   Cash
Equivalent Investments; 

        (c)   Investments
received in connection with the bankruptcy or reorganization of, or settlement of delinquent accounts and disputes with, customers and suppliers, in each
case in the ordinary course of business; 

        (d)   Investments
constituting Capital Expenditures; 

        (e)   Investments
by way of contributions to capital or purchases of Capital Securities (i) by the Borrower in any Subsidiaries or by any Subsidiary in other
Subsidiaries; provided that the aggregate amount of intercompany loans made pursuant to  clause (f)(ii) of Section 7.2.2 and Investments under this clause made by the Borrower and
Subsidiary Guarantors in Subsidiaries that are not Subsidiary Guarantors shall not exceed the amount set forth in clause(f)(ii) of  Section 7.2.2 at
any time, or (ii) by any Subsidiary in the Borrower; 

58

  

        (f)    Investments
constituting (i) accounts receivable arising, (ii) trade debt granted, or (iii) deposits made in connection with the purchase price of
goods or services, in each case in the ordinary course of business; 

        (g)   Investments
by way of the acquisition of Capital Securities permitted pursuant to clause (b) of  Section 7.2.9; 

        (h)   Investments
consisting of any deferred portion of the sales price received by the Borrower or any Subsidiary in connection with any Disposition permitted under  Section 7.2.10; 

        (i)    Investments
result from loans to employees in the ordinary course of business in an aggregate amount not to exceed $1,000,000 at any one time outstanding; 

        (j)    Investments
from receipt of non-cash consideration from a Disposition made in compliance with  Section 7.2.10; 

        (k)   Investments
in Hedging Obligations incurred in compliance with Section 7.2.2; 

        (l)    Contingent
Liabilities to the extent permitted by Section 7.2.2; 

        (m)  other
than during a Dividend Suspension Period, other Investments, in an aggregate amount not to exceed the amount of Cumulative Distributable Cash; and 

        (n)   other
Investments in an amount not to exceed $5,000,000 since the Amendment Effective Date; 

provided that 

        (o)   any
Investment which when made complies with the requirements of the definition of the term "Cash Equivalent Investment" may continue to be held notwithstanding that
such Investment if made thereafter would not comply with such requirements; and 

        (p)   no
Investment otherwise permitted by clauses (e)(i) (to the extent such Investment constitutes an Investment by an
Obligor in a Foreign Subsidiary), (g), (m) or (n) shall
be permitted to be made if any Default has occurred and is then continuing or would result therefrom. 

        SECTION
7.2.6.    Restricted Payments, etc.    The Borrower will not, and will not permit any of its Subsidiaries to,
declare or make a Restricted Payment, or make any deposit for any Restricted Payment, other than: 

        (a)   Restricted
Payments made by Subsidiaries to the Borrower or wholly-owned Subsidiaries; 

        (b)   Restricted
Payments made by the Borrower to Parent (i) pursuant to the Tax Sharing Agreement; provided that the
amount of such Restricted Payment shall not exceed the amount of taxes that the Borrower would have been liable for on a stand alone basis on a consolidated tax return with its Subsidiaries,
(ii) to pay franchise taxes and other overhead expenses of Parent in an amount not to exceed $1,000,000 in any Fiscal Year and (iii) in order to permit Parent to pay Additional Interest
(as defined in the Parent Notes Indenture (as defined in the Parent Guaranty)) in cash in an aggregate amount not exceeding $200,000; 

        (c)   repurchases
of Capital Securities from former employees, directors and officers of Parent and its Subsidiaries in an amount not to exceed $2,000,000 in any Fiscal Year;  provided that, to the extent the amount of
repurchases permitted to be made in any Fiscal Year pursuant to this clause exceeds the aggregate amount of
repurchases actually made by the Borrower and its Subsidiaries during such Fiscal Year, the excess amount may be carried forward to (but only to) the next succeeding Fiscal Year, and any such amount
carried forward to a succeeding Fiscal Year shall be deemed to be used following the Borrower and its Subsidiaries using the amount of repurchases permitted by this clause in such succeeding Fiscal
Year, without giving effect to such carry-forward; 

        (d)   repurchases
of Capital Securities deemed to occur upon exercise of stock options if such Capital Securities represents a portion of the exercise price of such options; 

59

 

        (e)   Restricted
Payments made by the Borrower to Parent that are necessary to consummate the Transaction; 

        (f)    other
than during any Dividend Suspension Period (i) so long as no Default has occurred and is continuing, payments to Parent to (A) service cash interest
payments on the Parent Notes that are due and payable or are expected to become due or payable within 10 days of such Restricted Payment, (B) fund redemptions or open market purchases of
Parent Notes, or (C) fund redemptions or open market purchases of Parent's Capital Securities and (ii) so long as no Default has occurred and is continuing at the time such payment is
declared and so long as no Event of Default has occurred and is continuing at the time such payment is made, payments to Parent to fund dividend payments on Parent's Capital Securities; provided that
the aggregate amount of all payments pursuant to this clause (f) shall not exceed Cumulative Distributable Cash; and 

        (g)   the
Monitoring Agreement Buyout Payment. 

        SECTION
7.2.7.    No Prepayment of Subordinated Debt.    The Borrower will not, and will not permit any of its
Subsidiaries to make a Subordinated Debt Prepayment, other than: 

        (a)   in
connection with the Subordinated Note Payment; 

        (b)   any
refinancing of the Subordinated Notes outstanding on the Amendment Effective Date or thereafter with the proceeds of Indebtedness or Capital Securities; and 

        (c)   after
the Amendment Effective Date, other than during any Dividend Suspension Period, so long as no Default has occurred and is continuing, redemptions or open market
purchases of the Subordinated Notes in an amount not in excess of Cumulative Distributable Cash. 

Furthermore,
neither the Borrower nor any Subsidiary will (i) designate any Indebtedness other than the Obligations as "Designated Senior Debt" (or any analogous term), (ii) in the event
there is more than one "credit agreement" in existence under the terms of a Subordinated Debt Document, give a notice to the trustee under such Subordinated Debt Document that any Person other than
the Administrative Agent is an "administrative agent" (as such term or analogous term is used therein), under such Subordinated Debt Document. 

        SECTION
7.2.8.    Issuance of Capital Securities.    The Borrower will not, and will not permit any of its
Subsidiaries to issue any Capital Securities (whether for value or otherwise) to any Person other than (a) in the case of Subsidiaries, to the Borrower or another wholly owned Subsidiary or
(b) in the case of
the Borrower, to Parent, so long as such Capital Securities are pledged and delivered to the Administrative Agent pursuant to a Loan Document. 

        SECTION
7.2.9.    Consolidation, Merger, Permitted Acquisitions, etc.    The Borrower will not, and will not permit
any of its Subsidiaries to, liquidate or dissolve, consolidate with, or merge into or with, any other Person, or purchase or otherwise acquire all or substantially all of the assets of any Person (or
any division thereof), except 

        (a)   any
Subsidiary may liquidate or dissolve voluntarily into, and may merge with and into, the Borrower or any other Subsidiary
(provided that a Guarantor may only liquidate or dissolve into, or merge with and into, the Borrower or another Guarantor), and the assets or Capital
Securities of any Subsidiary may be purchased or otherwise acquired by the Borrower or any other Subsidiary (provided that the assets or Capital
Securities of any Guarantor may only be purchased or otherwise acquired by the Borrower or another Guarantor); provided that in no event shall any
Pledged Subsidiary consolidate with or merge with and into any Subsidiary other than another Pledged Subsidiary unless after giving effect thereto, the Administrative Agent shall have a perfected
pledge of, and security interest in and to, at least the same percentage of the issued and outstanding interests of Capital Securities (on a fully diluted basis) of the surviving Person as the
Administrative Agent had immediately prior to such merger or consolidation in form and substance satisfactory to the Administrative Agent and its counsel, pursuant to such documentation 

60

 

and
opinions as shall be reasonably necessary in the opinion of the Administrative Agent to create, perfect or maintain the collateral position of the Secured Parties therein; and 

        (b)   so
long as no Default has occurred and is continuing or would occur after giving effect thereto, the Borrower or any of its Subsidiaries may consummate one or more
Permitted Acquisitions; provided that (i) the aggregate purchase price (including the assumption of Indebtedness and excluding consideration to
the extent consisting of Capital Securities of Parent) for such Permitted Acquisition does not exceed $25,000,000 and (ii) the aggregate amount spent by the Borrower for all Permitted
Acquisitions since the Amendment Effective Date does not exceed the sum of (A) $100,000,000 and (B) the unused amount of Investments
permitted pursuant to clause (m) of Section 7.2.5, and in the case of a Permitted
Acquisition of Capital Securities, such Permitted Acquisition shall result in the acquisition of a wholly owned U.S. Subsidiary (by merger, stock purchase or purchase of assets); provided that in the
event that the Borrower or any of its Subsidiaries wants to consummate a Permitted Acquisition at any time a Dividend Suspension Period has occurred and is continuing, it may not use any amounts
available under clause (ii)(B) to consummate such Permitted Acquisition. 

        SECTION
7.2.10.    Permitted Dispositions.    The Borrower will not, and will not permit any of its Subsidiaries to,
Dispose of any of the Borrower's or such Subsidiaries' assets (including accounts receivable and Capital Securities of Subsidiaries) to any Person in one transaction or series of transactions unless
such Disposition is: 

        (a)   inventory
or obsolete, damaged, worn out, surplus or outdated property Disposed of in the ordinary course of its business; 

        (b)   permitted
by Section 7.2.9; 

        (c)   (i) for
fair market value and the consideration received consists of no less than 75% cash, (ii) the Net Disposition Proceeds received from such
Disposition, together with the Net Disposition Proceeds of all other assets Disposed of pursuant to this clause (c) since the Amendment Effective
Date, does not in the aggregate exceed $15,000,000 over the term of this Agreement and (iii) the Net Disposition Proceeds from such Disposition are applied pursuant to  Sections 3.1.1 and
3.1.2; 

        (d)   from
one Obligor to another Obligor; 

        (e)   a
Specified Asset Sale made for fair market value and the consideration received consists of no less than 75% cash; 

        (f)    a
Disposition of Cash Equivalent Investments; 

        (g)   a
Disposition which constitutes a transfer of assets permitted by Sections 7.2.2,  7.2.3, 7.2.5 or
7.2.6; 

        (h)   the
grant in the ordinary course of business of any non-exclusive license of patents, trademarks, registrations thereof and other similar intellectual
property; 

        (i)    any
release of intangible claims or rights in connection with the loss or settlement of a bona fide lawsuit, dispute or other controversy; 

        (j)    an
Asset Swap; 

        (k)   leases
and subleases of assets or properties in the ordinary course of business not interfering in any material respect with the business of the Borrower or any of its
Subsidiaries; and 

        (l)    a
sale or discount, in each case without recourse, of accounts receivable arising in the ordinary course of business, but only in connection with the compromise or
collection thereof. 

        SECTION
7.2.11.    Modification of Certain Agreements.    The Borrower will not, and will not permit any of its
Subsidiaries to, consent to any amendment, supplement, waiver or other modification 

61

 

of,
or enter into any forbearance from exercising any rights with respect to the terms or provisions contained in, 

        (a)   the
Organic Documents of the Borrower or any of its Subsidiaries if the result thereof would have an adverse effect on the Lenders (it being agreed that any modification
of any such Organic Document would not have an adverse effect on the Lenders if such modification is made to effectuate a transaction otherwise permitted by the terms of any Loan Document); or 

        (b)   any
Subordinated Debt Documents, other than any amendment, supplement, waiver or modification of such Subordinated Debt Document which (i) extends the date or
reduces the amount of any required repayment, prepayment or redemption of the principal of such Subordinated Debt, (ii) reduces the rate or extends the date for payment of the interest, premium
(if any) or fees payable on such Subordinated Debt or (iii) makes the covenants, events of default or remedies in such Subordinated Debt Documents less restrictive on the Borrower. 

        SECTION
7.2.12.    Transactions with Affiliates.    The Borrower will not, and will not permit any of its Subsidiaries
to, enter into or cause or permit to exist any arrangement, transaction or contract (including for the purchase, lease or exchange of property or the rendering of services) with any of its other
Affiliates, unless such arrangement, transaction or contract is on fair and reasonable terms no less favorable to the Borrower or such Subsidiary than it could obtain in an arm's-length transaction
with a Person that is not an Affiliate, other than: 

        (a)   transactions
among Parent, the Borrower and its U.S. Subsidiaries; 

        (b)   loans
and advances to employees in the ordinary course of business; 

        (c)   any
Restricted Payment permitted by Section 7.2.6 or Investments permitted by  Section 7.2.5; 

        (d)   issuance
and sale of Capital Securities of the Borrower permitted by Section 7.2.8; 

        (e)   any
issuance of securities, or other payments, awards or grants in cash, Capital Securities or otherwise pursuant to, or the funding of, employment arrangements, stock
options and stock ownership plans approved by the Board of Directors of the Borrower; 

        (f)    reasonable
fees and compensation paid to, an indemnity provided for the benefit of, officers, directors, employees or consultants of the Borrower or any Subsidiary as
determined in good faith by the Borrower's Board of Directors; 

        (g)   any
transaction with a Subsidiary or joint venture or similar entity which would constitute a transaction with an Affiliate solely because the Borrower or a Subsidiary
owns an equity interest in or otherwise controls such Subsidiary, joint venture or similar entity; 

        (h)   the
Monitoring Agreement Buyout Payment; and 

        (i)    in
connection with the consummation of the Transaction. 

        SECTION
7.2.13.    Restrictive Agreements, etc.    The Borrower will not, and will not permit any of its Subsidiaries
to, enter into any agreement prohibiting 

        (a)   the
creation or assumption of any Lien upon its properties, revenues or assets, whether now owned or hereafter acquired; 

        (b)   the
ability of any Obligor to amend or otherwise modify any Loan Document; or 

        (c)   the
ability of any Subsidiary to make any payments, directly or indirectly, to the Borrower, including by way of dividends, advances, repayments of loans, reimbursements
of management and other intercompany charges, expenses and accruals or other returns on investments. 

The
foregoing prohibitions shall not apply to (i) any Loan Document, (ii) in the case of clause (a), (A) any agreement
governing any Indebtedness permitted by clause (e) of Section 7.2.2 as to the assets 

62

 

financed
with the proceeds of such Indebtedness, (B) customary provisions restricting subletting or assignment of any lease governing a leasehold interest, (C) customary provisions
restricting assignment of any agreement entered into in the ordinary course of business, (D) any restrictions by the holder of a Lien permitted by  Section 7.2.3 on the transfer of the asset or
assets subject thereto, (E) customary restrictions and conditions contained in any agreement
relating to the sale of any asset permitted under Section 7.2.10 pending the consummation of such sale, (F) any agreement in effect at the
time any Subsidiary becomes a Subsidiary of the Borrower, so long as such agreement was not entered into in contemplation of such person becoming a Subsidiary of the Borrower, (G) restrictions
on cash or other deposits or net worth requirements imposed by customers under contracts entered into in the ordinary course of business, (H) in the case of any joint venture (including any
Subsidiary which is a joint venture) which is not an Obligor, restrictions in such person's organization or governing documents or pursuant to any joint venture agreement or stockholders agreement
solely to the extent of the Capital Securities of or assets held in the subject joint venture or other entity, (I) the Subordinated Debt Documents executed in connection with the Subordinated
Notes (or any refinancing thereof permitted hereunder) or (J) any agreement in effect on the Amendment Effective Date and set forth on Item 7.2.14 of the Disclosure Schedule and (iii) in
the case of clauses (a) and (c), any agreement of a Foreign Subsidiary governing the Indebtedness
permitted by clause (f)(ii) of Section 7.2.2. 

        SECTION
7.2.14.    Sale and Leaseback.    The Borrower will not, and will not permit any of its Subsidiaries to,
directly or indirectly enter into any agreement or arrangement providing for the sale or transfer by it of any property (now owned or hereafter acquired) to a Person and the subsequent lease or rental
of such property or other similar property from such Person unless such transaction complies with Sections 7.2.2 and  7.2.10. 

        SECTION
7.2.15.    Fiscal Year.    The Borrower will not, and will not permit any of its Subsidiaries to, modify or
make any other change to its Fiscal Year. 

 
 

ARTICLE VIII
  
    EVENTS OF DEFAULT    
    

        SECTION
8.1.    Listing of Events of Default.    Each of the following events or occurrences described in this Article
shall constitute an "Event of Default". 

        SECTION
8.1.1.    Non-Payment of Obligations.    The Borrower shall default in the payment or prepayment
when due of 

        (a)   any
principal of any Loan, or any Reimbursement Obligation or any deposit of cash for collateral purposes pursuant to  Section 2.6.4; or 

        (b)   any
fee described in Article III, any interest on any Loan or any other monetary Obligation to the extent
invoiced, and such default shall continue unremedied for a period of five days after such amount was due. 

        SECTION
8.1.2.    Breach of Warranty.    Any representation or warranty of any Obligor made or deemed to be made in
any Loan Document (including any certificates delivered pursuant to Article V) is or shall be incorrect when made or deemed to have been made in
any material respect. 

        SECTION
8.1.3.    Non-Performance of Certain Covenants and Obligations.    The Borrower shall default in
the due performance or observance of any of its obligations under: (a) clauses (d) and (e)
of Section 7.1.1, Section 7.1.7 or  Section 7.2 or any Obligor shall default in the due
performance or observance of its obligations under Section 5.10(b) of the Parent
Guaranty and Pledge Agreement; or (b) Section 7.1.1 (other than clauses (d) and  (e) thereof)
and such default shall continue unremedied for a period of 5 days after the earlier to occur of (i) notice thereof given to
the Borrower by the Administrative Agent or any Lender or (ii) the date on which any Obligor has knowledge of such default. 

63

 

        SECTION
8.1.4.    Non-Performance of Other Covenants and Obligations.    Any Obligor shall default in the
due performance and observance of any other agreement contained in any Loan Document executed by it, and such default shall continue unremedied for a period of 30 days after the earlier to
occur of (i) notice thereof given to the Borrower by the Administrative Agent or any Lender or (ii) the date on which any Obligor has knowledge of such default. 

        SECTION
8.1.5.    Default on Other Indebtedness.    A default shall occur in the payment of any amount when due
(subject to any applicable grace period), whether by acceleration or otherwise, of any principal or stated amount of, or interest or fees on, any Indebtedness (other than Indebtedness described in  Section 8.1.1) of the Borrower or any of its Subsidiaries or any other Obligor having a principal or stated amount, individually or in the
aggregate, in excess of $7,500,000, or a default shall occur in the performance or observance of any obligation or condition with respect to such Indebtedness if the effect of such default is to
accelerate the maturity of any such Indebtedness or such
default shall continue unremedied for any applicable period of time sufficient to permit the holder or holders of such Indebtedness, or any trustee or agent for such holders, to cause or declare such
Indebtedness to become due and payable or to require such Indebtedness to be prepaid, redeemed, purchased or defeased, or require an offer to purchase or defease such Indebtedness to be made, prior to
its expressed maturity. 

        SECTION
8.1.6.    Judgments.    Any final or non-appealable judgment or order for the payment of money
individually or in the aggregate in excess of $7,500,000 (exclusive of any amounts fully covered by insurance (less any applicable deductible) and as to
which the insurer has not disputed its responsibility to cover such judgment or order) shall be rendered against the Borrower or any of its Subsidiaries or any other Obligor and such judgment shall
not have been vacated or discharged or stayed or bonded pending appeal within 60 days after the entry thereof or enforcement proceedings shall have been commenced by any creditor upon such
judgment or order. 

        SECTION
8.1.7.    Pension Plans.    Any of the following events shall occur with respect to any Pension Plan 

        (a)   the
institution of any steps by the Borrower, any member of its Controlled Group or any other Person to terminate a Pension Plan if, as a result of such termination, the
Borrower or any of its Subsidiaries could reasonably be expected to be required to make a contribution to such Pension Plan, or could reasonably expect to incur a liability or obligation to such
Pension Plan, in either case in excess of $7,500,000; or 

        (b)   a
contribution failure occurs with respect to any Pension Plan sufficient to give rise to a Lien under Section 302(f) of ERISA on the assets of the Borrower or
any of its Subsidiaries. 

        SECTION
8.1.8.    Change in Control.    Any Change in Control shall occur. 

        SECTION
8.1.9.    Bankruptcy, Insolvency, etc.    Parent, the Borrower or any Significant Subsidiary shall 

        (a)   become
insolvent or generally fail to pay, or admit in writing its inability or unwillingness generally to pay, its debts as they become due; 

64

  

        (b)   apply
for, consent to, or acquiesce in the appointment of a trustee, receiver, sequestrator or other custodian for any substantial part of the property of any thereof,
or make a general assignment for the benefit of creditors; 

        (c)   in
the absence of such application, consent or acquiesce to, or permit or suffer to exist, the appointment of a trustee, receiver, sequestrator or other custodian for a
substantial part of the property of any thereof, and such trustee, receiver, sequestrator or other custodian shall not be discharged within 60 days; 

        (d)   permit
or suffer to exist the commencement of any bankruptcy, reorganization, debt arrangement or other case or proceeding under any bankruptcy or insolvency law or any
dissolution, winding up or liquidation proceeding, in respect thereof, and, if any such case or proceeding is not commenced by Parent, the Borrower or any Significant Subsidiary, such case or
proceeding shall be consented to or acquiesced in by Parent, the Borrower or such Significant Subsidiary, as the case may be, or shall result in the entry of an order for relief or shall remain for
60 days undismissed, or 

        (e)   take
any action authorizing, or in furtherance of, any of the foregoing. 

        SECTION
8.1.10.    Impairment of Security, etc.    Any Loan Document or any Lien granted thereunder shall (except in
accordance with its terms), in whole or in part, terminate, cease to be effective or cease to be the legally valid, binding and enforceable obligation of any Obligor party thereto; any Obligor or any
other party shall, directly or indirectly, contest in any manner such effectiveness, validity, binding nature or enforceability; or, except as permitted under any Loan Document, any Lien securing any
Obligation shall, in whole or in part, cease to be a perfected first priority Lien (subject to (including with respect to priority) Liens otherwise permitted hereunder). 

        SECTION
8.1.11.    Failure of Subordination.    Unless otherwise waived or consented to by the Administrative Agent,
the Lenders and the Issuers in writing, the subordination provisions relating to the Subordinated Notes (or any refinancing thereof with additional Subordinated Debt) (the
"Subordination Provisions") shall fail to be enforceable by the Administrative Agent, the Lenders and the Issuers in accordance with the terms thereof,
or the monetary Obligations shall fail to constitute "Senior Indebtedness" (or similar term) referring to the Obligations; or the Borrower or any of its Subsidiaries shall, directly or indirectly,
disavow or contest in any manner (a) the effectiveness, validity or enforceability of any of the Subordination Provisions, (b) that the Subordination Provisions exist for the benefit of
the Administrative Agent, the Lenders and the Issuers or (c) that all payments of principal of or premium and interest on the Subordinated Notes (or any refinancing thereof with
additional Subordinated Debt), or realized from the liquidation of any property of any Obligor, shall be subject to any of such Subordination Provisions. 

        SECTION
8.2.    Action if Bankruptcy.    If any Event of Default described in  clauses (a) through (d) of Section 8.1.9
with respect to the Borrower shall occur, the Commitments (if not theretofore terminated) shall automatically terminate and the outstanding principal amount of all outstanding Loans and all other
Obligations (including Reimbursement Obligations) shall automatically be and become immediately due and payable, without notice or demand to any Person and each Obligor shall automatically and
immediately be obligated to Cash Collateralize all Letter of Credit Outstandings. 

        SECTION
8.3.    Action if Other Event of Default.    If any Event of Default (other than any Event of Default
described in clauses (a) through (d) of  Section 8.1.9 with respect to the Borrower) shall occur
for any reason, whether voluntary or involuntary, and be continuing, the Administrative
Agent, upon the direction of the Required Lenders, shall by notice to the Borrower declare all or any portion of the outstanding principal amount of the Loans and other Obligations (including
Reimbursement Obligations) to be due and payable and/or the Commitments (if not theretofore terminated) to be terminated, whereupon the full unpaid amount of such Loans and other Obligations which
shall be so 

65

 

declared
due and payable shall be and become immediately due and payable, without further notice, demand or presentment, and/or, as the case may be, the Commitments shall terminate and the Borrower
shall automatically and immediately be obligated to Cash Collateralize all Letter of Credit Outstandings. 

 
 

ARTICLE IX
  
    THE ADMINISTRATIVE AGENT    
    

        SECTION
9.1.    Actions.    Each Lender hereby appoints Credit Suisse as its Administrative Agent under and for
purposes of each Loan Document. Each Lender authorizes the Administrative Agent to act on behalf of such Lender under each Loan Document and, in the absence of other written instructions from the
Required Lenders received from time to time by the Administrative Agent (with respect to which the Administrative Agent agrees that it will comply, except as otherwise provided in this Section or as
otherwise advised by counsel in order to avoid contravention of applicable law), to exercise such powers hereunder and thereunder as are specifically delegated to or required of the Administrative
Agent by the terms hereof and thereof, together with such powers as may be reasonably incidental thereto. Each Lender hereby indemnifies (which indemnity shall survive any termination of this
Agreement) the Administrative Agent, pro rata according to such Lender's proportionate Total Exposure Amount, from and against any and all liabilities,
obligations, losses, damages, claims, costs or expenses of any kind or nature whatsoever which may at any time be imposed on, incurred by, or asserted against, the Administrative Agent in any way
relating to or arising out of any Loan Document (including reasonable attorneys' fees), and as to which the Administrative Agent is not reimbursed by the Borrower;  provided that no Lender shall be
liable for the payment of any portion of such liabilities, obligations, losses, damages, claims, costs or expenses
which are determined by a court of competent jurisdiction in a final proceeding to have resulted from the Administrative Agent's gross negligence or willful misconduct. The Administrative Agent shall
not be required to take any action under any Loan Document, or to prosecute or defend any suit in respect of any Loan Document, unless it is indemnified hereunder to its satisfaction. If any indemnity
in favor of the Administrative Agent shall be or become, in the Administrative Agent's determination, inadequate, the Administrative Agent may call for additional indemnification from the Lenders and
cease to do the acts indemnified against hereunder until such additional indemnity is given. The Administrative Agent is authorized to release collateral that is permitted to be sold or released
pursuant to the terms of the Loan Documents. 

        SECTION
9.2.    Funding Reliance, etc.    Unless the Administrative Agent shall have been notified in writing by any
Lender by 3:00 p.m. on the Business Day prior to a Borrowing that such Lender will not make available the amount which would constitute its Percentage of such Borrowing on the date specified
therefor, the Administrative Agent may assume that such Lender has made such amount available to the Administrative Agent and, in reliance upon such assumption, make available to the Borrower a
corresponding amount. If and to the extent that such Lender shall not have made such amount available to the Administrative Agent, such Lender and the Borrower severally agree to repay the
Administrative Agent forthwith on demand such corresponding amount together with interest thereon, for each day from the date the Administrative Agent made such amount available to the Borrower to the
date such amount is repaid to the Administrative Agent, at the interest rate applicable at the time to Loans comprising such Borrowing (in the case of the Borrower) and (in the case of a Lender), at
the Federal Funds Rate (for the first two Business Days after which such amount has not been repaid), and thereafter at the interest rate applicable to Loans comprising such Borrowing. 

        SECTION
9.3.    Exculpation.    Neither the Administrative Agent nor any of its directors, officers, employees or
agents shall be liable to any Secured Party for any action taken or omitted to be taken by it under any Loan Document, or in connection therewith, except for its own willful misconduct or gross
negligence, nor responsible for any recitals or warranties herein or therein, nor for the effectiveness, 

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enforceability,
validity or due execution of any Loan Document, nor for the creation, perfection or priority of any Liens purported to be created by any of the Loan Documents, or the validity,
genuineness, enforceability, existence, value or sufficiency of any collateral security, nor to make any inquiry respecting the performance by any Obligor of its Obligations. Any such inquiry which
may be made by the Administrative Agent shall not obligate it to make any further inquiry or to take any action. The Administrative Agent shall be entitled to rely upon advice of counsel concerning
legal matters and upon any notice, consent, certificate, statement or writing which the Administrative Agent believes to be genuine and to have been presented by a proper Person. 

        SECTION
9.4.    Successor.    The Administrative Agent may resign as such at any time upon at least 30 days'
prior notice to the Borrower and all Lenders. If the Administrative Agent at any time shall resign, the Required Lenders may, with the consent of the Borrower (not to be unreasonably withheld or
delayed) so long as no Default then exists, appoint another Lender as a successor Administrative Agent which shall thereupon become the Administrative Agent hereunder. If no successor Administrative
Agent shall have been so appointed, and shall have accepted such appointment, within 30 days after the retiring Administrative Agent's giving notice of resignation, then the retiring
Administrative Agent may, on behalf of the Lenders, appoint a successor Administrative Agent, which shall be one of the Lenders or a commercial banking institution organized under the laws of the
United States (or any State thereof) or a United States branch or agency of a commercial banking institution, and having a combined capital and surplus of at least $250,000,000;  provided that if such
retiring Administrative Agent is unable to find a commercial banking institution which is willing to accept such appointment and
which meets the qualifications set forth in above, the retiring Administrative Agent's resignation shall nevertheless thereupon become effective and the Lenders shall assume and perform all of the
duties of the Administrative Agent hereunder until such time, if any, as the Required Lenders appoint a successor as provided for above. Upon the acceptance of any appointment as Administrative Agent
hereunder by a successor Administrative Agent, such successor Administrative Agent shall be entitled to receive from the retiring Administrative Agent such documents of transfer and assignment as such
successor Administrative Agent may reasonably request, and shall thereupon succeed to and become vested with all rights, powers, privileges and duties of the retiring Administrative Agent, and the
retiring Administrative Agent shall be discharged from its duties and obligations under the Loan Documents. After any retiring Administrative Agent's resignation hereunder as the Administrative Agent,
the provisions of this Article shall inure to its benefit as to any actions taken or omitted to be taken by it while it was the Administrative Agent under the Loan Documents, and  Sections 10.3 and
10.4 shall continue to inure to its benefit. 

        SECTION
9.5.    Loans by Credit Suisse or any Successor Administrative Agent.    Credit Suisse (and any successor
Administrative Agent) shall have the same rights and powers with respect to (a) the Credit Extensions made by it or any of its Affiliates, and (b) the Notes held by it or any of its
Affiliates as any other Lender and may exercise the same as if it were not the Administrative Agent. Credit Suisse and its Affiliates (and any successor Administrative Agent) may accept deposits from,
lend money to, and generally engage in any kind of business with the Borrower or any Subsidiary or Affiliate of the Borrower as if Credit Suisse (or such successor Administrative Agent) were not the
Administrative Agent hereunder. 

        SECTION
9.6.    Credit Decisions.    Each Lender acknowledges that it has, independently of the Administrative Agent
and each other Lender, and based on such Lender's review of the financial information of the Borrower, the Loan Documents (the terms and provisions of which being satisfactory to such Lender) and such
other documents, information and investigations as such Lender has deemed appropriate, made its own credit decision to extend its Commitments. Each Lender also acknowledges that it will, independently
of the Administrative Agent and each other Lender, and based on such other documents, information and investigations as it shall deem appropriate at any time, 

67

 

continue
to make its own credit decisions as to exercising or not exercising from time to time any rights and privileges available to it under the Loan Documents. 

        SECTION
9.7.    Copies, etc.    The Administrative Agent shall give prompt notice to each Lender of each notice or
request required or permitted to be given to the Administrative Agent by the Borrower pursuant to the terms of the Loan Documents (unless concurrently delivered to the Lenders by the Borrower). The
Administrative Agent will distribute to each Lender each document or instrument received for its account and copies of all other communications received by the Administrative Agent from the Borrower
for distribution to the Lenders by the Administrative Agent in accordance with the terms of the Loan Documents. 

        SECTION
9.8.    Reliance by Administrative Agent.    The Administrative Agent shall be entitled to rely upon any
certification, notice or other communication (including any thereof by telephone, telecopy, telegram or cable) believed by it to be genuine and correct and to have been signed or sent by or on behalf
of the proper Person, and upon advice and statements of legal counsel, independent accountants and other experts selected by the Administrative Agent. As to any matters not expressly provided for by
the Loan Documents, the Administrative Agent shall in all cases be fully protected in acting, or in refraining from acting, thereunder in accordance with instructions given by the Required Lenders or
all of the Lenders as is required in such circumstance, and such instructions of such Lenders and any action taken or failure to act pursuant thereto shall be binding on all Secured Parties. For
purposes of applying amounts in accordance with this Section, the Administrative Agent shall be entitled to rely upon any Secured Party that has entered into a Rate Protection Agreement with any
Obligor for a determination (which such Secured Party agrees to provide or cause to be provided upon request of the Administrative Agent) of the outstanding Obligations owed to such Secured Party
under any Rate Protection Agreement. Unless it has actual knowledge evidenced by way of written notice from any such Secured Party or the Borrower to the contrary, the Administrative Agent, in acting
in such capacity under the Loan Documents, shall be entitled to assume that no Rate Protection Agreements or Obligations in respect thereof are in existence or outstanding between any Secured Party
and any Obligor. 

        SECTION
9.9.    Defaults.    The Administrative Agent shall not be deemed to have knowledge or notice of the
occurrence of a Default unless the Administrative Agent has received a written notice from a Lender or the Borrower specifying such Default and stating that such notice is a "Notice of Default". In
the event that the Administrative Agent receives such a notice of the occurrence of a Default, the Administrative Agent shall give prompt notice thereof to the Lenders. The Administrative Agent shall
(subject to Section 10.1) take such action with respect to such Default as shall be directed by the Required Lenders;  provided that unless and until
the Administrative Agent shall have received such directions, the Administrative Agent may (but shall not be obligated
to) take such action, or refrain from taking such action, with respect to such Default as it shall deem advisable in the best interest of the Secured Parties except to the extent that this Agreement
expressly requires that such action be taken, or not be taken, only with the consent or upon the authorization of the Required Lenders or all Lenders. 

        SECTION
9.10.    Syndication Agent, Co-Documentation Agents.    Neither the Syndication Agent nor the
Co-Documentation Agents shall have any right, power, obligation, liability, responsibility or duty under this Agreement (or any other Loan Document) other than those applicable to all
Lenders as such. Without limiting the foregoing, neither the Syndication Agent nor the Co-Documentation Agents shall have or be deemed to have any fiduciary relationship with any other
Lender. Each Lender acknowledges that it has not relied, and will not rely, on the Syndication Agent or the Co-Documentation Agents in deciding to enter into this Agreement and each other
Loan Document to which it is a party or in taking or not taking action hereunder or thereunder. 

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ARTICLE X
  
    MISCELLANEOUS PROVISIONS    
    

        SECTION
10.1.    Waivers, Amendments, etc.    The provisions of each Loan Document (other than Rate Protection
Agreements, Letters of Credit and each Fee Letter (which documents may be amended or otherwise modified in accordance with the terms thereof) may from time to time be amended, modified or waived, if
such amendment, modification or waiver is in writing and consented to by the Borrower and the Required Lenders; provided, however, that (i) any
such amendment, modification or waiver required to give effect to any Incremental Term Loan Commitment shall not require the consent of any Lender other than, and shall require the consent of, any
Lender that has agreed to provide any such Incremental Term Loan Commitment and (ii) no other such amendment, modification or waiver shall: 

        (a)   modify
this Section or change or waive any provision of Section 4.8 requiring pro rata treatment of the Lenders,
or the sharing of payments by all Lenders, in each case without the consent of all Lenders; 

        (b)   increase
the aggregate amount of any Credit Extensions required to be made by a Lender pursuant to its Commitments, extend the final Commitment Termination Date of
Credit Extensions made (or participated in) by a Lender or extend the final Stated Maturity Date for any Lender's Loan, in each case without the consent of such Lender (it being agreed, however, that
any vote to rescind any acceleration made pursuant to Sections 8.2 and 8.3 of amounts owing with
respect to the Loans and other Obligations shall only require the vote of the Required Lenders); 

        (c)   reduce
the principal amount of or rate of interest on any Lender's Loan, reduce any fees described in Article III
payable to any Lender or extend the date on which interest or fees are payable in respect of such Lender's Loans, in each case without the consent of such Lender; 

        (d)   reduce
the percentage set forth in the definition of "Required Lenders" or modify any requirement hereunder that any particular action be taken by all Lenders without
the consent of all Lenders; 

        (e)   increase
the Stated Amount of any Letter of Credit unless consented to by the Issuer of such Letter of Credit; 

        (f)    except
as otherwise expressly provided in a Loan Document, release (i) the Borrower from its Obligations under the Loan Documents or any Guarantor from its
obligations under a Guaranty or (ii) all or substantially all of the collateral under the Loan Documents, in each case without the consent of all Lenders; 

        (g)   (i) amend,
modify or waive clause (b) of  Section 3.1.1 or (ii) have the effect (either immediately or at some later time) of enabling the Borrower to
satisfy a condition precedent
to the making of a Revolving Loan or the issuance of a Letter of Credit unless such amendment, modification or waiver shall have been consented to by the Lenders holding a majority of the aggregate
amount of the then outstanding Revolving Loan Commitments; or 

        (h)   affect
adversely the interests, rights or obligations of the Administrative Agent (in its capacity as the Administrative Agent) or any Issuer (in its capacity as
Issuer), unless consented to by the Administrative Agent or such Issuer, as the case may be. 

No
failure or delay on the part of any Credit Party in exercising any power or right under any Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such
power or right preclude any other or further exercise thereof or the exercise of any other power or right. No notice to or demand on any Obligor in any case shall entitle it to any notice or demand in
similar or other circumstances. No waiver or approval by any Credit Party under any Loan Document shall, 

69

 

except
as may be otherwise stated in such waiver or approval, be applicable to subsequent transactions. No waiver or approval hereunder shall require any similar or dissimilar waiver or approval
thereafter to be granted hereunder. 

        SECTION
10.2.    Notices; Time.    All notices and other communications provided under each Loan Document shall be in
writing (including by facsimile) and addressed, delivered or transmitted, if to the Borrower, the Administrative Agent, a Lender or Issuer to the applicable Person at its address or facsimile number
set forth on Schedule II hereto or set forth in a Lender Assignment Agreement, or at such other address or facsimile number as may be designated
by such party in a notice to the other parties. Any notice, if mailed and properly addressed with postage prepaid or if properly addressed and sent by pre-paid courier service, shall be
deemed given when received; any notice, if transmitted by facsimile, shall be deemed given when the confirmation of transmission thereof is received by the transmitter. Electronic mail and Internet
and intranet websites may be used only to distribute routine communications, such as financial statements and other information as provided in  Section 7.1.1, and to distribute Loan Documents for
execution by the parties thereto, and may not be used for any other purpose. The parties
hereto agree that delivery of an executed counterpart of a signature page to this Agreement and each other Loan Document by facsimile shall be effective as delivery of an original executed counterpart
of this Agreement or such other Loan Document. Unless otherwise indicated, all references to the time of a day in a Loan Document shall refer to New York time. 

        SECTION
10.3.    Payment of Costs and Expenses.    The Borrower agrees to pay on demand all reasonable expenses of the
Lead Arrangers (including the reasonable fees and out-of-pocket expenses of Mayer, Brown, Rowe & Maw LLP, counsel to the Lead Arrangers and of local counsel, if any, who
may be retained by or on behalf of the Lead Arrangers) in connection with 

        (a)   the
negotiation, preparation, execution and delivery of each Loan Document, including schedules and exhibits, and any amendments, waivers, consents, supplements or other
modifications to any Loan Document as may from time to time hereafter be required, whether or not the transactions contemplated hereby are consummated; and 

        (b)   the
filing or recording of any Loan Document (including the Filing Statements) and all amendments, supplements, amendment and restatements and other modifications to any
thereof, searches made following the Amendment Effective Date in jurisdictions where Filing Statements (or other documents evidencing Liens in favor of the Secured Parties) have been recorded and any
and all other documents or instruments of further assurance required to be filed or recorded by the terms of any Loan Document; and 

        (c)   the
preparation and review of the form of any document or instrument relevant to any Loan Document. 

The
Borrower further agrees to pay, and to save each Credit Party harmless from all liability for, any stamp or other taxes which may be payable in connection with the execution or delivery of each
Loan Document, the Credit Extensions or the issuance of any Notes. The Borrower also agrees to reimburse the Lead Arrangers upon demand for all reasonable out-of-pocket
expenses (including reasonable attorneys' fees and legal expenses of one counsel (and any local counsel) to the Lead Arrangers) incurred by the Lead Arrangers in connection with (x) the
negotiation
of any restructuring or "work-out" with the Borrower, whether or not consummated, of any Obligations and (y) the enforcement of any Obligations. 

        SECTION
10.4.    Indemnification.    In consideration of the execution and delivery of this Agreement by each Credit
Party, the Borrower shall indemnify, exonerate, defend and hold each Credit Party and each of their respective officers, directors, employees and agents and in the case of an Approved Fund, its
trustees and investment advisors (collectively, the "Indemnified Parties") free and harmless from and against any and all actions, causes of action,
suits, losses, costs, liabilities and 

70

 

damages
(whether or not based on strict liability and including any special, indirect or consequential damages), and expenses of any kind or nature whatsoever (irrespective of whether any such
Indemnified Party is a party to the action for which indemnification hereunder is sought), including reasonable attorneys' and consultants' fees and disbursements, whether incurred in connection with
actions between or among the parties hereto or the parties hereto and third parties (regardless of whether caused in whole or in part by the simple (but not gross) negligence of any indemnified party)
(collectively, the "Indemnified Liabilities"), incurred by the Indemnified Parties or any of them as a result of, or arising out of, or relating to 

        (a)   any
transaction financed or to be financed in whole or in part, directly or indirectly, with the proceeds of any Credit Extension, including all Indemnified Liabilities
arising in connection with the Transaction; 

        (b)   the
entering into and performance of any Loan Document by any of the Indemnified Parties (including any action brought by or on behalf of the Borrower as the result of
any determination by the Required Lenders pursuant to Article V not to fund any Credit Extension,  provided that any such action is resolved in favor
of such Indemnified Party); 

        (c)   any
investigation, litigation or proceeding related to any acquisition or proposed acquisition by any Obligor or any Subsidiary thereof of all or any portion of the
Capital Securities or assets of any Person, whether or not an Indemnified Party is party thereto; 

        (d)   any
environmental matter relating to any Obligor or any Subsidiary thereof; 

        (e)   the
actual or alleged presence, escape, seepage, leakage, spillage, discharge, emission, discharging or release at, on, under, from or affecting any real property owned
or operated by any Obligor or any Subsidiary thereof of any Hazardous Material (including any losses, liabilities, damages, injuries or claims and reasonable costs or expenses asserted or arising
under any Environmental Law), regardless of whether caused by, or within the control of, such Obligor or Subsidiary; or 

        (f)    each
Lender's Environmental Liability (the indemnification herein shall survive repayment of the Obligations and any transfer of the property of any Obligor or its
Subsidiaries by foreclosure or by a deed in lieu of foreclosure for any Lender's Environmental Liability, regardless of whether caused by, or within the control of, such Obligor or such Subsidiary); 

except
for Indemnified Liabilities arising for the account of a particular Indemnified Party to the extent of the relevant Indemnified Party's breach of contract, gross negligence or willful
misconduct. Each Obligor and its successors and assigns hereby waive, release and agree not to make any claim or bring any cost recovery action against, any Indemnified Party under any Environmental
Law, including CERCLA or any state equivalent, or any similar law now existing or hereafter enacted. It is expressly understood and agreed that to the extent that any Indemnified Party is strictly
liable under any Environmental Laws, each Obligor's obligation to such Indemnified Party under this indemnity shall likewise be without regard to fault on the part of any Obligor with respect to the
violation or condition which results in liability of an Indemnified Party; provided that this waiver and release shall not apply to the extent that the
Indemnified Liabilities arise for the account of a particular Indemnified Party by reason of the relevant Indemnified Party's breach of contract, gross negligence or willful misconduct. If and to the
extent that the foregoing undertaking may be unenforceable for any reason, each Obligor agrees to make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities
which is permissible under applicable law. 

        SECTION
10.5.    Survival.    The obligations of the Borrower under  Sections 4.3, 4.4, 4.5,  4.6, 10.3 and 10.4, and the obligations of the Lenders
under Sections 9.1 and 10.16, shall in each case survive any assignment from one Lender to
another (in the case of Sections 10.3 and 10.4) and the occurrence of 

71

 

the
Termination Date. The representations and warranties made by each Obligor in each Loan Document shall survive the execution and delivery of such Loan Document. 

        SECTION
10.6.    Severability.    Any provision of any Loan Document which is prohibited or unenforceable in any
jurisdiction shall, as to such provision and such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of such Loan Document
or affecting the validity or enforceability of such provision in any other jurisdiction. 

        SECTION
10.7.    Headings.    The various headings of each Loan Document are inserted for convenience only and shall
not affect the meaning or interpretation of such Loan Document or any provisions thereof. 

        SECTION
10.8.    Execution in Counterparts, Effectiveness, etc.    This Agreement may be executed by the parties
hereto in several counterparts, each of which shall be an original and all of which shall
constitute together but one and the same agreement. This Agreement shall become effective when counterparts hereof executed on behalf of the Borrower, the Administrative Agent and each Lender (or
notice thereof satisfactory to the Administrative Agent) shall have been received by the Administrative Agent; provided, however that the provisions of
this Agreement shall not become operative until the satisfaction of the conditions in Section 5.1 shall have occurred. In the event that the
conditions set forth in Section 5.1 have not been satisfied or waived by August 19, 2005, this Agreement shall terminate and no longer be
binding on any of the parties hereto. 

        SECTION
10.9.    Governing Law; Entire Agreement.    EACH LOAN DOCUMENT (OTHER THAN THE LETTERS OF CREDIT, TO THE
EXTENT SPECIFIED BELOW AND EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN A LOAN DOCUMENT) WILL EACH BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK
(INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK). EACH LETTER OF CREDIT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OR RULES DESIGNATED IN SUCH LETTER OF CREDIT, OR IF NO LAWS OR RULES ARE DESIGNATED, THE INTERNATIONAL STANDBY PRACTICES (ISP98—INTERNATIONAL CHAMBER OF COMMERCE
PUBLICATION NUMBER 590 (THE "ISP RULES")) AND, AS TO MATTERS NOT GOVERNED BY THE ISP RULES, THE INTERNAL LAWS OF THE STATE OF NEW YORK. THIS AGREEMENT
AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE
NO ORAL AGREEMENTS BETWEEN THE PARTIES. The Loan Documents constitute the entire understanding among the parties hereto with respect to the subject matter thereof and supersede any prior agreements,
written or oral, with respect thereto. 

        SECTION
10.10.    Successors and Assigns.    This Agreement shall be binding upon and shall inure to the benefit of
the parties hereto and their respective successors and assigns; provided that the Borrower may not assign or transfer its rights or obligations hereunder without the consent of all Lenders. 

        SECTION
10.11.    Sale and Transfer of Credit Extensions; Participations in Credit Extensions.    Each Lender may
assign, or sell participations in, its Loans, Letters of Credit and Commitments to one or more other Persons in accordance with the terms set forth below. 

        (a)   Any
Lender may, with the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed), assign to one or more Eligible Assignees all or a
portion of its 

72

 

rights
and obligations under this Agreement (including all or a portion of its Commitments and the Loans at the time owing to it); provided that: 

        (i)    except
in the case of (A) an assignment of the entire remaining amount of the assigning Lender's Commitments and the Loans at the time owing to it or
(B) 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 Commitments (which for this purpose includes Loans
outstanding thereunder) or principal outstanding balance of the Loans of the assigning Lender subject to each such assignment (determined as of the date the Lender Assignment Agreement with respect to
such assignment is delivered to the Administrative Agent) shall not be less than $1,000,000, unless the Administrative Agent and, so long as no Event of Default has occurred and is continuing, the
Borrower otherwise consent (each such consent not to be unreasonably withheld or delayed); 

        (ii)   each
partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender's rights and obligations under this Agreement with respect to
the Loans and/or the Commitments assigned, except that this clause (ii) shall not prohibit any Lender from assigning all or a portion of its
rights and obligations among separate tranches on a non-pro rata basis; and 

        (iii)  the
parties to each assignment shall (A) electronically execute and deliver to the Administrative Agent a Lender Assignment Agreement via an electronic
settlement system acceptable to the Administrative Agent (which initially shall be ClearPar, LLC) or (B) manually execute and deliver to the Administrative Agent a Lender Assignment Agreement,
together with a processing and recordation fee of $3,500 and if the Eligible Assignee is not a Lender, administrative details information with respect to such Eligible Assignee and applicable tax
forms. 

        (b)   Subject
to acceptance and recording thereof by the Administrative Agent pursuant to clause (c), from and after the
effective date specified in each Lender Assignment Agreement, (i) the Eligible Assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such Lender Assignment
Agreement, have the rights and obligations of a Lender under this Agreement, and (ii) the assigning Lender thereunder shall, to the extent of the interest assigned by such Lender Assignment
Agreement, subject to Section 10.5, be released from its obligations under this Agreement (and, in the case of a Lender Assignment Agreement
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 any provisions of
this Agreement which by their terms survive the termination of this Agreement). Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with  clauses (a) and (b) 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 clause (d). If the consent of the Borrower to an assignment or to an Eligible
Assignee is required hereunder (including a consent to an assignment which does not meet the minimum assignment thresholds specified in this Section), the Borrower shall be deemed to have given its
consent ten Business Days after the date notice thereof has been delivered by the assigning Lender (through the Administrative Agent or ClearPar, LLC) unless such consent is expressly refused by the
Borrower prior to such tenth Business Day. 

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        (c)   The
Administrative Agent shall record each assignment made in accordance with this Section in the Register pursuant to  clause (b) of Section 2.7. The
Register shall be available for inspection by the Borrower
and any Lender, at any reasonable time and from time to time upon reasonable prior notice. 

        (d)   Any
Lender may, without the consent of, or notice to, the Borrower or the Administrative Agent, sell participations to one or more banks or other entities (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 Commitments and/or
the 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 Borrower, the Administrative Agent and the other Lenders shall continue to deal
solely and directly with such Lender in connection with such Lender's rights and obligations under this Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement;  provided that such agreement
or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment,
modification or waiver with respect to any of the items set forth in clauses (a) through (d) or  (f) of
Section 10.1, in each case except as otherwise specifically provided in a Loan Document.
Subject to clause (e), the Borrower agrees that each Participant shall be entitled to the benefits of  Sections 4.3, 4.4, 4.5, 4.6, 7.1.1, 10.3
and 10.4 to the same extent as if it were a Lender and
had acquired its interest by assignment pursuant to clause (b). To the extent permitted by law, each Participant also shall be entitled to the
benefits of Section 4.9 as though it were a Lender, provided such Participant agrees to be
subject to Section 4.8 as though it were a Lender. 

        (e)   A
Participant shall not be entitled to receive any greater payment under Sections 4.3, 4.4, 4.5, 4.6, 10.3 and  10.4 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 Borrower's prior written consent. A Participant that would be a Non-U.S. Credit Party if it were a Lender shall not be entitled to the
benefits of Section 4.6 unless the Borrower is notified of the participation sold to such Participant and such Participant agrees, for the
benefit of the Borrower, to comply with the requirements set forth in Section 4.6 as though it were a Lender. In addition, if at the time of the
sale of such participation, any greater Taxes subject to payment under Section 4.6 would apply to the Participant than applied to the applicable
Lender, then such Participant shall not be entitled to any payment under Section 4.6 with respect to the portion of such Taxes as exceeds the
Taxes applicable to the Lender at the time of the sale of the participation unless the Participant's request for the Borrower's prior written consent for the Participation described in the first
sentence of this clause states that such greater Taxes would be applicable to such Participant. 

        (f)    Any
Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement 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 of a security
interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto. 

        (g)   In
the event that S&P or Moody's, shall, after the date that any Person becomes a Revolving Loan Lender, downgrade the long-term certificate of deposit
ratings of such Lender, and the resulting ratings shall be below BBB- or Baa3, respectively, or the equivalent, then the Borrower, the Swing Line Lender and each Issuer shall each have the
right, but not the obligation, upon notice to such Revolving Loan Lender and the Administrative Agent, to replace such Revolving Loan Lender with a financial institution (a
"Replacement Lender") acceptable to the Borrower and the Administrative Agent (such consents not to be unreasonably withheld or 

74

 

delayed;
provided that no such consent shall be required if the Replacement Lender is an existing Revolving Loan Lender), and upon any such downgrading
of any Revolving Loan Lender's long-term certificate of deposit rating, each such Revolving Loan Lender hereby agrees to transfer and assign (in accordance with this Section all of its
Commitments and other rights and obligations under the Loan Documents (including Reimbursement Obligations) to such Replacement Lender; provided that
(i) such assignment shall be without recourse, representation or warranty (other than that such Lender owns the Commitments, Loans and Notes being assigned, free and clear of any Liens) and
(ii) the purchase price paid by the Replacement Lender shall be in the amount of such Revolving Loan Lender's Loans and its Percentage of outstanding Reimbursement Obligations, together with
all accrued and unpaid interest and fees in respect thereof, plus all other amounts (other than the amounts (if any) demanded and unreimbursed under  Sections 4.2 through (and including) 4.6, which shall be paid by the Borrower), owing to such
Revolving Loan Lender hereunder. Upon any such termination or assignment, such Revolving Loan Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of, and subject
to the obligations of, any provisions of this Agreement which by their terms survive the termination of this Agreement. 

        (h)   Notwithstanding
anything else contained in this Section, no Lender may assign its Loans or Commitments during the Primary Syndication other than (i) assignments
by the Administrative Agent, the Syndication Agent, the Lead Arrangers and their respective Affiliates or (ii) assignments by a Lender to its Affiliate or Approved Fund. 

        (i)    Notwithstanding
anything to the contrary contained herein, any Lender (a "Granting Lender") may grant to a special
purpose funding vehicle (a "SPC"), identified as such in writing from time to time by the Granting Lender to the Administrative Agent and the Borrower,
the option to provide to the Borrower all or any part of any Loan that such Granting Lender would otherwise be obligated to make to the Borrower pursuant to this Agreement;  provided that (i)
 nothing herein shall constitute a commitment by any SPC to make any Loan and (ii) if an SPC elects not to exercise such
option or otherwise fails to provide all or any part of such Loan, the Granting Lender shall be obligated to make such Loan pursuant to the terms hereof. The making of an Loan by an SPC hereunder
shall utilize the Commitment of the Granting Lender to the same extent, and as if, such Loan were made by such Granting Lender. Each party hereto hereby agrees that no SPC shall be liable for any
indemnity or similar payment obligation under this Agreement (all liability for which shall remain with the Granting Lender). In furtherance of the foregoing, each party hereto hereby agrees (which
agreement shall survive the termination of this Agreement) that, prior to the date that is one year and one day after the payment in full of all outstanding commercial paper or other senior
indebtedness of any SPC, it will not institute against, or join any other person in instituting against, such SPC any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings
under the laws of the United States or any State thereof. In addition, notwithstanding anything to the contrary contained in this clause, any SPC may (i) with notice to, but without the prior
written consent of, the Borrower, the Administrative Agent or the Syndication Agent and without paying any processing fee therefor, assign all or a portion of its interests in any Loans to the
Granting Lender or to any financial institutions (consented to by the Borrower, the Syndication Agent and the Administrative Agent) providing liquidity and/or credit support to or for the account of
such SPC to support the funding or maintenance of Loans and (ii) disclose on a confidential basis any non-public information relating to its Loans to any rating agency, commercial
paper dealer or provider of any surety, guarantee or credit or liquidity enhancement to such SPC. This section may not be amended without the written consent of the SPC. The Borrower acknowledges and
agrees, subject to the next sentence, that, to the fullest extent permitted under applicable law, each SPC, for purposes of Sections 4.3, 4.4, 4.5, 4.6, 4.8, 4.9,
10.3 and 10.4, shall be considered a Lender. The Borrower shall not be required to pay any amount under  Sections 4.3, 4.4, 4.5, 4.6,
10.3 and 10.4 that is greater 

75

 

than
the amount which it would have been required to pay had no grant been made by a Granting Lender to a SPC. 

        SECTION
10.12.    Other Transactions.    Nothing contained herein shall preclude the Administrative Agent, any Issuer
or any other Lender from engaging in any transaction, in addition to those contemplated by the Loan Documents, with the Borrower or any of its Affiliates in which the Borrower or such Affiliate is not
restricted hereby from engaging with any other Person. 

        SECTION
10.13.    Forum Selection and Consent to Jurisdiction.    ANY LITIGATION BASED HEREON, OR ARISING OUT OF,
UNDER, OR IN CONNECTION WITH, ANY LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF THE ADMINISTRATIVE AGENT, THE LENDERS, ANY ISSUER OR
THE BORROWER IN CONNECTION HEREWITH OR THEREWITH MAY BE BROUGHT AND MAINTAINED IN THE COURTS OF THE STATE OF NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK;  PROVIDED THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER
PROPERTY MAY BE BROUGHT, AT THE ADMINISTRATIVE AGENT'S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. THE BORROWER IRREVOCABLY CONSENTS TO THE SERVICE
OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK AT THE ADDRESS FOR NOTICES SPECIFIED IN  SECTION 10.2. THE BORROWER HEREBY EXPRESSLY
AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY HAVE OR
HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE
EXTENT THAT THE BORROWER HAS OR HEREAFTER MAY ACQUIRE 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 OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, THE BORROWER HEREBY IRREVOCABLY WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS
UNDER THE LOAN DOCUMENTS. 

        SECTION
10.14.    Waiver of Jury Trial.    THE ADMINISTRATIVE AGENT, EACH LENDER, EACH ISSUER AND THE BORROWER HEREBY
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER,
OR IN CONNECTION WITH, EACH LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF THE ADMINISTRATIVE AGENT, SUCH LENDER, SUCH ISSUER OR THE
BORROWER IN CONNECTION THEREWITH. THE BORROWER ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED FULL AND SUFFICIENT CONSIDERATION FOR THIS PROVISION (AND EACH OTHER PROVISION OF EACH OTHER LOAN DOCUMENT
TO WHICH IT IS A PARTY) AND THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE ADMINISTRATIVE AGENT, EACH LENDER AND EACH ISSUER ENTERING INTO THE LOAN DOCUMENTS. 

        SECTION
10.15.    Limitation on Interest.    The Borrower, the Administrative Agent and the Lenders intend to contract
in strict compliance with applicable usury laws from time to time in effect. In furtherance thereof such Persons stipulate and agree that none of the terms and provisions contained in the Loan
Documents shall ever be construed to create a contract to pay, for the use, forbearance or detention of money, interest in excess of the maximum amount of interest permitted to 

76

 

be
charged by applicable law from time to time in effect. Neither the Borrower nor any present or future Guarantors, endorsers or other Persons hereafter becoming liable for payment of any Obligation
shall ever be liable for unearned interest thereon or shall ever be required to pay interest thereon in excess of the maximum amount that may be lawfully contracted for, charged or received under
applicable law from time to time in effect, and the provisions of this section shall control over all other provisions of the Loan Documents that may be in conflict or apparent conflict herewith. The
Administrative Agent and the Lenders expressly disavow any intention to contract for, charge or collect excessive unearned interest or finance charges in the event the maturity of any Obligation is
accelerated. If (a) the maturity of any Obligation is accelerated for any reason, (b) any Obligation is prepaid and as a result any amounts held to constitute interest are determined to
be in excess of the legal maximum, or (c) the Administrative Agent or a Lender shall otherwise collect moneys that are determined to constitute interest that would otherwise increase the
interest on any or all of the Obligations to an amount in excess of that permitted to be charged by applicable law then in effect, then all sums determined to constitute interest in excess of such
legal limit shall, without penalty, be promptly applied to reduce the then outstanding principal of the related Obligations or, at the option of the Administrative Agent or such Lender, as applicable,
promptly returned to the Borrower upon such determination. In determining whether or not the interest paid or payable, under any specific circumstance, exceeds the maximum amount permitted under
applicable law, the Administrative Agent and the Lenders and the Borrower shall to the greatest extent permitted under applicable law, (i) characterize any non-principal payment as
an expense, fee or premium rather than as interest, (ii) exclude voluntary prepayments and the effects thereof, and (iii) amortize, prorate, allocate and spread the total amount of
interest throughout the entire contemplated term of instruments evidencing the Obligations in accordance with the amounts outstanding from time to time thereunder and the maximum legal rate of
interest from time to time in effect under applicable law in order to lawfully contract for, charge, or receive the maximum amount of interest permitted under applicable law. In the event applicable
law provides for an interest ceiling under Chapter 303 of the Texas Finance Code (the "Texas Finance Code"), as amended, for that day, the ceiling shall
be the "weekly ceiling" as defined in the Texas Finance Code, provided that if any applicable law permits greater interest, the law permitting the
greatest interest shall apply. As used in this section the term "applicable law" means the laws of the State of Texas or the laws of the United States, whichever allow the greater interest, as such
laws now exist or may be changed or amended or come into effect in the future. 

        SECTION
10.16.    Confidentiality.    The Lenders and the Administrative Agent shall hold all non-public
information obtained pursuant to or in connection with this Agreement about Parent or any of its Subsidiaries in accordance with their customary procedures for handling confidential information of
this nature, but may make disclosure to any of their examiners, Affiliates, their and their Affiliate's directors, officers, employees, agents, trustees and representatives, outside auditors, counsel
and other professional advisors or to any direct or indirect contractual counterparty in swap agreements or such contractual counterparty's professional advisor (so long as such contractual
counterparty or professional advisor to such contractual counterparty agrees to be bound by the provisions of this Section) in connection with this Agreement or as reasonably required by any potential  bona fide transferee, participant or assignee, or in connection with the exercise of remedies under a
Loan Document, or as requested by any governmental agency or representative thereof or pursuant to legal process or to any quasi-regulatory authority (including the National Association of Insurance
Commissioners); provided that 

        (a)   unless
specifically prohibited by applicable law or court order, each Lender and the Administrative Agent shall notify the Borrower of any request by any governmental
agency or representative thereof (other than any such request in connection with an examination of the financial condition of such Lender or its Affiliate by such governmental agency) for disclosure
of any such non-public information prior to or within a reasonable time after disclosure of such information; 

77

 

        (b)   prior
to any such disclosure pursuant to this Section, each Lender shall require any such bona fide transferee,
participant and assignee receiving a disclosure of non-public information to agree in writing (i) to be bound by this Section; and (ii) to require such Person to require
any other Person to whom such Person discloses such non-public information to be similarly bound by this Section; and 

        (c)   except
as may be required by an order of a court of competent jurisdiction and to the extent set forth therein, no Lender shall be obligated or required to return any
materials furnished by Parent, the Borrower or any Subsidiary. 

        Notwithstanding
the foregoing paragraphs of this Section, any party to this Agreement (and each Affiliate, director, officer, employee, agent or representative of the foregoing or such
Affiliate) may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the transactions contemplated herein and all materials of any kind (including
opinions or other tax analyses) that are provided to such party relating to such tax treatment or tax structure. The foregoing language is not intended to waive any confidentiality obligations
otherwise applicable under this Agreement except with respect to the information and materials specifically referenced in the preceding sentence. This authorization does not extend to disclosure of
any other information, including (a) the identity of participants or potential participants in the transactions contemplated herein, (b) the existence or status of any negotiations, or
(c) any financial, business, legal or personal information of or regarding a party or its affiliates, or of or regarding any participants or potential participants in the transactions
contemplated herein (or any of their respective affiliates), in each case to the extent such other information is not related to the tax treatment or tax structure of the transactions contemplated
herein. 

        SECTION
10.17.    USA PATRIOT Act Notice.    Each Lender and the Administrative Agent (for itself and not on behalf of
any Lender) hereby notifies the Borrower that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) (the
"Patriot Act"), it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of
the Borrower and other information that will allow such Lender or the Administrative Agent, as applicable, to identify the Borrower in accordance with the Patriot Act. 

        SECTION
10.18.    Effect of Amendment and Restatement of the Existing Credit Agreement.    On the Amendment Effective
Date, the Existing Credit Agreement shall be amended and restated in its entirety. The parties hereto acknowledge and agree that (a) this Agreement and the other Loan Documents, whether
executed and delivered in connection herewith or otherwise, do not constitute a novation, payment and reborrowing, or termination of the "Obligations" (as defined in the Existing Credit Agreement)
under the Existing Credit Agreement as in effect prior to the Amendment Effective Date and which remain outstanding, (b) such "Obligations" are in all respects continuing (as amended and
restated hereby and which are hereinafter subject to the terms herein) and (c) the Liens and security interests as granted under the applicable Loan Documents securing payment of such
"Obligations" are in all respects continuing and in full force and effect (as assigned to the Administrative Agent for the benefit of the Secured Parties pursuant to this Agreement and the other Loan
Documents). 

78

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

	 	 	REDDY ICE GROUP, INC.
	

 	
 	
By:	

 
	 	 	 	
 Name:

Title:
	

 	
 	

CREDIT SUISSE, Cayman Islands Branch, as Administrative Agent, Co-Lead Arranger and Bookrunner
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:
	

 	
 	

CREDIT SUISSE, Cayman Islands Branch, as a Lender
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:
	

 	
 	

CANADIAN IMPERIAL BANK OF COMMERCE, as a Co-Lead Arranger, Syndication Agent and Sole Bookrunner
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:
	 	 	 	 

79

 

	

 	
 	

CIBC Inc., as a Lender
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:
	

 	
 	

BEAR STEARNS CORPORATE LENDING INC., as a Co-Lead Arranger and Co-Bookrunner, Co-Documentation Agent and a Lender
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:
	

 	
 	

LEHMAN BROTHERS INC., as a Co-Lead Arranger and Co-Bookrunner and Co-Documentation Agent
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:
	

 	
 	

LENDERS:
	

 	
 	

CIT LENDING SERVICES CORPORATION
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:
	

 	
 	

MERRILL LYNCH CAPITAL, A DIVISION OF MERRILL LYNCH BUSINESS FINANCIAL SERVICES INC.
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:
	

 	
 	

GENERAL ELECTRIC CAPITAL CORPORATION
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:

80

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TABLE OF CONTENTS

AMENDED AND RESTATED CREDIT AGREEMENT

W I T N E S S E T H

ARTICLE I DEFINITIONS AND ACCOUNTING TERMS

ARTICLE II COMMITMENTS, BORROWING AND ISSUANCE PROCEDURES, NOTES AND LETTERS OF CREDIT

ARTICLE III REPAYMENTS, PREPAYMENTS, INTEREST AND FEES

ARTICLE IV CERTAIN LIBO RATE AND OTHER PROVISIONS

ARTICLE V CONDITIONS TO EFFECTIVENESS

ARTICLE VI REPRESENTATIONS AND WARRANTIES

ARTICLE VII COVENANTS

ARTICLE VIII EVENTS OF DEFAULT

ARTICLE IX THE ADMINISTRATIVE AGENT

ARTICLE X MISCELLANEOUS PROVISIONSQuickLinks
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Exhibit 10.26  

 
 

[FORM OF]
  
    AMENDMENT TO REDDY ICE HOLDINGS, INC.
  2003 STOCK OPTION PLAN    
    

        The Reddy Ice Holdings, Inc. 2003 Stock Option Plan (the "Plan") is amended as follows, effective as of August    , 2005. 

        1.     Section 3(a)
of the Plan is amended to add "; and" at the end of clause (ix) thereof and to add the following clause (x) at the end of such
Section 3(a): 

"(x) to
provide for the early exercise of an Option for Restricted Shares as provided in Section 6(d) below." 

        2.     The
last sentence of Section 4(a) of the Plan is amended to read as follows: 

"If
Shares subject to any Option are not issued, or cease to be issuable for any reason, including (but not exclusively) because an Option is forfeited, terminated, expires unexercised, is settled in
cash in lieu of Shares or is exchanged for other Options, or Shares subject to any Restricted Share agreement issued on early exercise of an Option are forfeited, the Shares that were subject to that
Option or Restricted Share agreement, as the case may be, shall no longer be charged against the number of available Shares and shall again be available for issue or exercise pursuant to grants of new
Options under this Plan to the extent of such forfeiture, termination, expiration, settlement or exchange." 

        3.     Section 4(c)
of the Plan is amended by adding new paragraph (vii) to read as follows: 

        "(vii) If
an event or condition described in this Section 4(c) occurs, the Committee shall make applicable adjustments to outstanding Restricted Shares issued on early
exercise of Options which are substantially similar to those adjustments set forth above in this Section 4(c)." 

        4.     Section 5(e)(i) of
the Plan is amended by adding the following at the end thereof: 

"Notwithstanding
any provision of this Plan to the contrary, in the event of a Qualified IPO on or prior to August 31, 2005, all unvested Time Based Options outstanding on the closing date of
such Qualified IPO shall vest 40% on February 28, 2006, an additional 40% on January 16, 2007 and final 20% on July 1, 2007." 

        5.     Section 5
of the Plan is amended by adding the following new Section 5(e)(ii)(4) thereto: 

        "(4)
Notwithstanding any provision of this Plan to the contrary, upon the closing of a Qualified IPO on or prior to August 31, 2005, all Performance Based Options outstanding on
the closing date of such Qualified IPO shall become exercisable in full on such date." 

        6.     Section 5(g)
of the Plan is amended by adding new clause (iv) to the end thereof: 

        "(iv) Notwithstanding
any provision of this Plan to the contrary, following a Qualified IPO on or prior to August 31, 2005, unless otherwise determined by a unanimous vote
of the Board (without the participation by the Participant if he or she is a member of the Board), (A) if the termination is by the Participant's employer not for Cause (as such term is defined
in the Participant's employment agreement if the Participant has a written employment agreement with the employer, or as defined below if the Participant does not have such a written employment
agreement) or (B) if termination is by the Participant for good reason (as defined in the Participant's written employment Agreement, but only for Participants in whose employment agreement
such term appears), then the Time Based Options held by such Participant shall become vested in full on the date of termination. For purposes of this Plan, in the case of a Participant who does not
have a written employment agreement with his or her employer, "Cause" means (i) the commission by the Participant of an act of fraud, dishonesty, embezzlement or the 

 

unauthorized
disclosure or use of confidential information, (ii) the Participant pleads guilty or no contest to, or is convicted of, any criminal offense involving moral turpitude,
(iii) material misconduct by the Participant which could reasonably be expected to adversely affect the Parent or its Subsidiaries, (iv) failure by the Participant to adequately perform
the duties for which he or she has been employed, as determined by the Parent in good faith, or (v) material breach by the Participant of the code of conduct of the Parent or its Subsidiaries." 

        7.     Section 6(a)
of the Plan is amended by adding the following at the end thereof: 

"Only
if and to the extent so authorized by the Committee, the Option may be exercised through the written election of the Participant to have Shares withheld by the Parent from the Shares otherwise
to be received upon exercise, with such withheld Shares having an aggregate fair market value on the date of exercise equal to the exercise price." 

        8.     New
Section 6(d) is added to the Plan to read as follows: 

        "(d)    Early Exercise For Restricted Shares.    The Committee may provide at the time of grant or any time
thereafter, in its sole discretion, that any Option granted at any time under the Plan shall be exercisable with respect to Shares for which it would otherwise not then be exercisable, provided that,
in connection with such exercise, the Participant enters into a form of Restricted Share agreement approved by the Committee with respect to the Shares obtained on exercise (which shall be Restricted
Shares hereunder). Unless otherwise determined by the Committee, the lapse of restrictions with respect to such Restricted Shares (including, without limitation, in the event of a Change of Control)
shall occur on the same schedule, and subject to the same conditions, as the exercisability of the Option under which the Restricted Shares were exercised. Except to the extent, if any, restricted
under the award agreement relating to the Restricted Shares, a Participant who receives Restricted Shares on early exercise of an Option shall have all of the rights of a shareholder including,
without limitation, the right to vote the Restricted Shares and the right to receive dividends thereon. Except as otherwise determined by the Committee, at the date of grant or thereafter, upon
termination of service during the applicable restriction period, Restricted Shares and any accrued but unpaid dividends that are at that time subject to restrictions shall be forfeited;  provided,
however, that the Committee may provide, by rule or regulation or in any Restricted Share
agreement, or may determine in any individual case, that restrictions or forfeiture conditions relating to Restricted Shares will be waived in whole or in part in the event of termination of service
resulting from specified causes, and the Committee may in other cases waive in whole or in part the forfeiture of Restricted Shares. Restricted Shares granted under the Plan may be evidenced in such
manner as the Committee shall determine. If certificates representing Restricted Shares are registered in the name of the Participant, such certificates shall bear an appropriate legend referring to
the terms, conditions, and restrictions applicable to such Restricted Shares, and, unless the Committee determines otherwise, the Company shall retain physical possession of the certificate and the
Participant shall deliver a stock power to the Company, endorsed in blank, relating to the Restricted Shares." 

        9.     Sections
8(a), (c), (d), (e), (f), (g) and (h) shall each be amended by adding "or Restricted Share" after the word "Option" in each place it appears
therein. 

2

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[FORM OF] AMENDMENT TO REDDY ICE HOLDINGS, INC. 2003 STOCK OPTION PLAN

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