Document:

EXHIBIT 10.10

 

MAIDENFORM BRANDS, INC.

2005 ANNUAL PERFORMANCE BONUS PLAN

 

1.                    PURPOSE

 

The purpose of
the Plan is to attract, retain and motivate key employees by providing performance
awards to designated key employees of the Company or its Subsidiaries.

 

2.                    DEFINITIONS

 

Unless the
context otherwise requires, the words that follow shall have the following
meanings:

 

(a)                                  “Award”
shall mean a performance award under the Plan.

 

(b)                                 “Board”
shall mean the Board of Directors of the Company.

 

(c)                                  “Code”
shall mean the Internal Revenue Code of 1986, as amended, and any successor
thereto.

 

(d)                                 “Company”
shall mean Maidenform Brands, Inc. and any successor by merger,
consolidation or otherwise.

 

(e)                                  “Committee”
shall mean the Compensation Committee of the Board or such other committee of
the Board that is appointed by the Board to administer the Plan.

 

(f)                                    “Common
Stock” means the common stock, $0.01 par value per share, of the Company.

 

(g)                                 “Participant”
shall mean an executive employee of the Company or any Subsidiary selected, in
accordance with Section 4 hereof, to be eligible to receive an Award in
accordance with the Plan.

 

(h)                                 “Performance
Period” shall mean each fiscal year of the Company or such other period (as
specified by the Committee) over which performance is to be measured, provided,
however, the initial Performance Period under this Plan shall be the Company’s
fiscal year commencing January 2, 2005 and ending December 31, 2005
(the “Initial Performance Period”).

 

(i)                                     “Plan”
shall mean the Maidenform Brands, Inc. 2005 Annual Performance Bonus Plan.

 

(j)                                     “Registration
Date” shall mean the first date (i) on which the Company sells its Common
Stock in a bona fide, firm commitment underwriting pursuant to a registration
statement under the Securities Act of 1933, as amended or (ii) any class
of common equity securities of the Company is required to be registered under Section 12
of the Securities Exchange Act of 1934, as amended.

 

1

 

(k)                                  “Section 162(m)”
shall mean the exception for performance based compensation under Section 162(m)
of the Code (or any successor section) and the Treasury regulations promulgated
thereunder.

 

(l)                                     “Subsidiary”
shall mean any subsidiary corporation of the Company within the meaning of Section 424(f) of
the Code.

 

3.                    ADMINISTRATION
AND INTERPRETATION OF THE PLAN

 

(a)                                  The
Plan shall be administered by the Committee.  The Committee shall have the exclusive
authority and responsibility to make all determinations and take all other
actions necessary or desirable for the Plan’s administration, including,
without limitation, correcting any defect, supplying any omission or
reconciling any inconsistency in the Plan in the manner and to the extent it
shall deem necessary to carry the Plan into effect.  The Committee may, in its discretion,
delegate its authority and responsibility under the Plan to the extent
permitted by applicable law, provided that the Committee may not delegate
authority or responsibility with respect to individuals subject to Rule 16b-3
of the Securities Exchange Act of 1934, as amended.

 

(b)                                 All
decisions of the Committee on any question concerning the selection of
Participants and the interpretation and administration of the Plan shall be
final, conclusive and binding upon all parties.  The Committee may rely on information, and
consider recommendations, provided by the Board or the executive officers of
the Company.

 

4.                    ELIGIBILITY
AND PARTICIPATION

 

(a)                                  For
each Performance Period, the Committee shall select, in its discretion, the
employees of the Company or its Subsidiaries who are to participate in the Plan.

 

(b)                                 No
person shall be entitled to any Award for a Performance Period unless the
individual is designated as a Participant for the Performance Period.  The Committee may add to or delete individuals
from the list of designated Participants at any time and from time to time, in
its sole discretion, provided that once a person is designated as a Participant
for a Performance Period such person shall not be removed as a Participant
during such Performance Period.

 

5.                    PERFORMANCE
AWARD PROGRAM

 

5.1                                 PERFORMANCE
AWARDS.  Subject to the satisfaction of
any conditions on payment imposed by the Committee, each Participant shall be
eligible to receive an Award based on the attainment of the performance goals
described on Exhibit A, attached hereto, during a specified Performance
Period as determined by the Committee in its sole discretion.

 

5.2                                 SECTION 162(m).  The Plan has been adopted by the Board prior
to the occurrence of a Registration Date. 
The Plan is intended to constitute a plan described in Treasury
Regulation Section 1.162-27(f)(1), pursuant to which the deduction limits
under Section 162(m) of the Code do not apply during the applicable
reliance period.

 

5.3                                 PAYMENT
DATE.  Awards may be paid at such time(s)
as determined by the Committee but in all events except as provided in the next
sentence, shall be paid not later than

 

2

 

the later of: (i) March 15
after the end of the applicable year; or (ii) two and one-half (2 1/2)
months after the expiration of the fiscal year in which the Performance Period
with respect to which they are earned ends, provided that, if an Award is not
paid by such dates the Award shall be paid on April 1 after the end of the
applicable year.  The Committee may defer
payment of all or any portion of any Awards with such conditions as the
Committee may determine and may permit a Participant electively to defer receipt
of all or a portion of an Award.  Unless
otherwise determined by the Committee in its sole discretion, no Award or pro
rata portion thereof shall be payable to any individual whose employment with
the Company or its Subsidiaries has ceased prior to the date such Award is
paid.

 

5.4                                 FORM OF
PAYMENT.  In the sole discretion of the
Committee, Awards may be paid in whole or in part in cash, Common Stock or
other property, provided that any Common Stock shall be issued under the
Maidenform Brands, Inc. 2005 Stock Incentive Plan as an “other stock-based
award” (or another plan maintained by the Company that was approved by stockholders) or under another
arrangement that is permitted under applicable stock exchange or listing rules.

 

6.                    NON-ASSIGNABILITY

 

No Award or
payment thereof nor any right or benefit under the Plan shall be subject to
anticipation, alienation, sale, assignment, pledge, encumbrance, garnishment,
execution or levy of any kind or charge, and any attempt to anticipate,
alienate, sell, assign, pledge, encumber and to the extent permitted by
applicable law, charge, garnish, execute upon or levy upon the same shall be
void and shall not be recognized or given effect by the Company.

 

7.                    NO
RIGHT TO EMPLOYMENT

 

Nothing in the
Plan or in any notice of an Award shall confer upon any person the right to
continue in the employment of the Company or one of its Subsidiaries or affect
the right of the Company or any of its Subsidiaries to terminate the employment
of any Participant.

 

8.                    AMENDMENT
OR TERMINATION

 

The Board (or
a duly authorized committee thereof) reserves the right to amend, suspend or
terminate the Plan at any time, provided that no amendment, suspension or
termination may adversely affect the rights of any Participant with regard to
an Award for a current or prior Performance Period.

 

9.                    EFFECTIVE
DATE AND TERM OF PLAN

 

The Board
approved the Plan effective as of January 2, 2005, subject to the approval
of the Plan by the stockholders of the Company in accordance with the
requirements of the laws of the State of Delaware.

 

No Award may
be paid under this Plan after the expiration of the reliance period under
Treasury Regulation Section 1.162-27(f)(1), which is the earlier of: (i) first
meeting of stockholders at which directors are to be elected that occurs after December 31,
2008; or (ii) the

 

3

 

date the Plan is materially
amended for purposes of Treasury Regulation Section 1.162-27(h)(1)(iii).

 

10.              SEVERABILITY

 

In the event
that any one or more of the provisions contained in the Plan shall, for any
reason, be held to be invalid, illegal or unenforceable, in any respect, such
invalidity, illegality or unenforceability shall not affect any other provision
of the Plan and the Plan shall be construed as if such invalid, illegal or
unenforceable provisions had never been contained therein.

 

11.              WITHHOLDING

 

The Company
shall have the right to make such provisions as it deems necessary or
appropriate to satisfy any obligations it may have under law to withhold
federal, state or local income or other taxes incurred by reason of payments
pursuant to the Plan.

 

12.              GOVERNING
LAW

 

The Plan and
any amendments thereto shall be construed, administered, and governed in all
respects in accordance with the laws of the State of Delaware (regardless of
the law that might otherwise govern under applicable principles of conflict of
laws).

 

4

 

EXHIBIT A

 

The performance goals shall be based on the attainment of certain
target levels of, or a specified increase or decrease (as applicable) in the
following criteria or such other criteria determined by the Committee: (i) enterprise
value or value creation targets; (ii) after-tax or pre-tax profits,
including without limitation as attributable to continuing and/or other
operations of the Company; (iii) operational cash flow or economic value
added; (iv) specified objectives with regard to limiting the level of
increase in all or a portion of, the Company’s bank debt or other long-term or
short-term public or private debt or other similar financial obligations of the
Company, which may be calculated net of cash balances and/or other offsets and
adjustments as may be established by the Committee; (v) earnings per share
or earnings per share from continuing operations; (vi) sales, revenues,
net income or earnings before income tax or other exclusions; (vii) return
on capital employed or return on invested capital; (viii) after-tax or
pre-tax return on stockholder equity; (ix) the fair market value of the
shares of the Company’s Common Stock; (x) the growth in the value of an
investment in the Company’s Common Stock assuming the reinvestment of
dividends; (xi) a transaction that results in the sale of stock or assets of
the Company; (xii) earnings before interest, taxes plus amortization and
depreciation; or (xiii) reduction in expenses. 
The Committee may, in its sole discretion, also exclude, or adjust to
reflect, the impact of an event or occurrence which the Committee determines
should be appropriately excluded or adjusted, including: (a) restructurings,
discontinued operations, extraordinary items or events, and other unusual or
non-recurring charges, (b) an event either not directly related to the
operations of the Company or not within the reasonable control of the Company’s
management, or (c) a change in tax law or accounting standards required by
generally accepted accounting principles. 
Performance goals may also be based upon individual Participant
performance goals, as determined by the Committee, in its sole discretion.

 

In addition, performance goals may be based upon the attainment of
specified goals attained by, or with respect to, the Company, or any
subsidiary, division or other operational unit or business segment of the
Company, or based upon performance under one or more of the measures described
above relative to the performance of other corporations.  The Committee may: (i) designate
additional business criteria on which the performance goals may be based or (ii) adjust,
modify or amend the aforementioned business criteria.

 

5EXHIBIT 10.13

 

 

EXECUTION COPY

 

 

AMENDED AND RESTATED CREDIT
AGREEMENT

 

DATED AS OF JUNE 29, 2005

 

AMONG

 

MAIDENFORM, INC.,

as Borrower,

 

MAIDENFORM BRANDS, INC.,

 

THE LENDERS LISTED HEREIN,

as Lenders

 

and

 

BNP PARIBAS,

as Administrative Agent,

 

and

 

 

BNP PARIBAS SECURITIES CORP.,

as Sole Lead Arranger

 

and

 

GMAC COMMERCIAL FINANCE LLC,

as
Syndication Agent

 

 

TABLE OF CONTENTS

 

	
  SECTION 1.                                DEFINITIONS

  	
   

  
	
  1.1

  	
  Certain Defined Terms

  	
   

  
	
  1.2

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

  	
   

  
	
  1.3

  	
  Other Definitional Provisions and Rules of
  Construction

  	
   

  
	
  1.4

  	
  Amendment and Restatement

  	
   

  
	
  SECTION 2.                                AMOUNTS AND TERMS OF COMMITMENTS AND LOANS

  	
   

  
	
  2.1

  	
  Commitments; Making of Loans; the Register;
  Optional Notes

  	
   

  
	
  2.2

  	
  Interest on the Loans

  	
   

  
	
  2.3

  	
  Fees

  	
   

  
	
  2.4

  	
  Repayments, Prepayments and Reductions in
  Revolving Loan Commitment Amount; General Provisions Regarding Payments;
  Application of Proceeds of Collateral and Payments Under Guaranty

  	
   

  
	
  2.5

  	
  Use of Proceeds

  	
   

  
	
  2.6

  	
  Special Provisions Governing LIBOR Loans

  	
   

  
	
  2.7

  	
  Increased Costs; Taxes; Capital Adequacy

  	
   

  
	
  2.8

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

  	
   

  
	
  2.9

  	
  Replacement of a Lender

  	
   

  
	
  SECTION 3.                                LETTERS OF CREDIT

  	
   

  
	
  3.1

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

  	
   

  
	
  3.2

  	
  Letter of Credit Fees

  	
   

  
	
  3.3

  	
  Drawings and Reimbursement of Amounts Paid
  Under Letters of Credit

  	
   

  
	
  3.4

  	
  Obligations Absolute

  	
   

  
	
  3.5

  	
  Nature of Issuing Lenders’ Duties

  	
   

  
	
  SECTION 4.                                CONDITIONS TO LOANS AND LETTERS OF CREDIT

  	
   

  
	
  4.1

  	
  Conditions to Effectiveness

  	
   

  
	
  4.2

  	
  Conditions to All Loans

  	
   

  
	
  4.3

  	
  Conditions to Letters of Credit

  	
   

  

 

 

	
  SECTION 5.                                COMPANY’S REPRESENTATIONS AND WARRANTIES

  	
   

  
	
  5.1

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

  	
   

  
	
  5.2

  	
  Authorization of Borrowing, etc

  	
   

  
	
  5.3

  	
  Financial Condition

  	
   

  
	
  5.4

  	
  No Material Adverse Change

  	
   

  
	
  5.5

  	
  Title to Properties; Liens; Real Property;
  Intellectual Property

  	
   

  
	
  5.6

  	
  Litigation; Adverse Facts

  	
   

  
	
  5.7

  	
  Payment of Taxes

  	
   

  
	
  5.8

  	
  Performance of Agreements

  	
   

  
	
  5.9

  	
  Governmental Regulation

  	
   

  
	
  5.10

  	
  Securities Activities

  	
   

  
	
  5.11

  	
  Employee Benefit Plans

  	
   

  
	
  5.12

  	
  Certain Fees

  	
   

  
	
  5.13

  	
  Environmental Protection

  	
   

  
	
  5.14

  	
  Employee Matters

  	
   

  
	
  5.15

  	
  Solvency

  	
   

  
	
  5.16

  	
  Matters Relating to Collateral

  	
   

  
	
  5.17

  	
  Disclosure

  	
   

  
	
  5.18

  	
  Delivery of Related Agreements

  	
   

  
	
  5.19

  	
  Foreign Assets Control Regulations, Etc

  	
   

  
	
  SECTION
  6.                                COMPANY’S AFFIRMATIVE COVENANTS

  	
   

  
	
  6.1

  	
  Financial Statements and Other Reports

  	
   

  
	
  6.2

  	
  Existence, etc

  	
   

  
	
  6.3

  	
  Payment of Taxes and Claims; Tax

  	
   

  
	
  6.4

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

  	
   

  
	
  6.5

  	
  Inspection Rights; Lender Meeting

  	
   

  
	
  6.6

  	
  Compliance with Laws, etc

  	
   

  
	
  6.7

  	
  Environmental Matters

  	
   

  
	
  6.8

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

  	
   

  
	
  6.9

  	
  Matters Relating to Additional Real
  Property Collateral

  	
   

  

 

 

	
  6.10

  	
  Interest Rate Protection

  	
   

  
	
  6.11

  	
  Deposit Accounts and Securities Accounts

  	
   

  
	
  6.12

  	
  Equitable Lien in Favor of Lenders

  	
   

  
	
  6.13

  	
  Post-Restatement Date Actions

  	
   

  
	
  SECTION 7.                                COMPANY’S NEGATIVE COVENANTS

  	
   

  
	
  7.1

  	
  Indebtedness

  	
   

  
	
  7.2

  	
  Liens and Related Matters

  	
   

  
	
  7.3

  	
  Investments; Acquisitions

  	
   

  
	
  7.4

  	
  Contingent Obligations

  	
   

  
	
  7.5

  	
  Restricted Junior Payments

  	
   

  
	
  7.6

  	
  Financial Covenants

  	
   

  
	
  7.7

  	
  Restriction on Fundamental Changes; Asset
  Sales

  	
   

  
	
  7.8

  	
  Consolidated Capital Expenditures

  	
   

  
	
  7.9

  	
  Transactions with Shareholders and
  Affiliates

  	
   

  
	
  7.10

  	
  Sales and Lease-Backs

  	
   

  
	
  7.11

  	
  Conduct of Business

  	
   

  
	
  7.12

  	
  Amendments or Waivers of the
  Representations and Warranties Insurance Policy

  	
   

  
	
  7.13

  	
  Fiscal Year

  	
   

  
	
  7.14

  	
  Trademark

  	
   

  
	
  SECTION 8.                                EVENTS OF DEFAULT

  	
   

  
	
  8.1

  	
  Failure to Make Payments When Due

  	
   

  
	
  8.2

  	
  Default in Other Agreements

  	
   

  
	
  8.3

  	
  Breach of Certain Covenants

  	
   

  
	
  8.4

  	
  Breach of Warranty

  	
   

  
	
  8.5

  	
  Other Defaults Under Loan Documents

  	
   

  
	
  8.6

  	
  Involuntary Bankruptcy; Appointment of
  Receiver, etc

  	
   

  
	
  8.7

  	
  Voluntary Bankruptcy; Appointment of
  Receiver, etc

  	
   

  
	
  8.8

  	
  Judgments and Attachments

  	
   

  
	
  8.9

  	
  Dissolution

  	
   

  
	
  8.10

  	
  Employee Benefit Plans

  	
   

  
	
  8.11

  	
  Change in Control

  	
   

  

 

 

	
  8.12

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

  	
   

  
	
  8.13

  	
  Conduct of Business By Holdings

  	
   

  
	
  SECTION 9.                                ADMINISTRATIVE AGENT

  	
   

  
	
  9.1

  	
  Appointment

  	
   

  
	
  9.2

  	
  Powers and Duties; General Immunity

  	
   

  
	
  9.3

  	
  Independent Investigation by Lenders; No
  Responsibility for Appraisal of Creditworthiness

  	
   

  
	
  9.4

  	
  Right to Indemnity

  	
   

  
	
  9.5

  	
  Resignation of Agents; Successor
  Administrative Agent and Swing Line Lender

  	
   

  
	
  9.6

  	
  Collateral Documents and Guaranty

  	
   

  
	
  9.7

  	
  Duties of Other Agents

  	
   

  
	
  9.8

  	
  Administrative Agent May File Proofs of
  Claim

  	
   

  
	
  SECTION
  10.                          MISCELLANEOUS

  	
   

  
	
  10.1

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

  	
   

  
	
  10.2

  	
  Expenses

  	
   

  
	
  10.3

  	
  Indemnity

  	
   

  
	
  10.4

  	
  Set-Off

  	
   

  
	
  10.5

  	
  Ratable Sharing

  	
   

  
	
  10.6

  	
  Amendments and Waivers

  	
   

  
	
  10.7

  	
  Independence of Covenants

  	
   

  
	
  10.8

  	
  Notices; Effectiveness of Signatures

  	
   

  
	
  10.9

  	
  Survival of Representations, Warranties and
  Agreements

  	
   

  
	
  10.10

  	
  Failure or Indulgence Not Waiver; Remedies
  Cumulative

  	
   

  
	
  10.11

  	
  Marshalling; Payments Set Aside

  	
   

  
	
  10.12

  	
  Severability

  	
   

  
	
  10.13

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

  	
   

  
	
  10.14

  	
  Release of Security Interest or Guaranty

  	
   

  
	
  10.15

  	
  Applicable Law

  	
   

  
	
  10.16

  	
  Construction of Agreement; Nature of
  Relationship

  	
   

  

 

 

	
  10.17

  	
  Consent to Jurisdiction and Service of
  Process

  	
   

  
	
  10.18

  	
  Waiver of Jury Trial

  	
   

  
	
  10.19

  	
  Confidentiality

  	
   

  
	
  10.20

  	
  Counterparts; Effectiveness

  	
   

  
	
  10.21

  	
  Acknowledgement by Company

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature pages

  	
   

  

 

 

EXHIBITS

 

 

	
  I

  	
  FORM OF NOTICE OF BORROWING

  	
   

  
	
   

  	
   

  	
   

  
	
  II

  	
  FORM OF NOTICE OF CONVERSION/CONTINUATION

  	
   

  
	
   

  	
   

  	
   

  
	
  III

  	
  FORM OF REQUEST FOR ISSUANCE

  	
   

  
	
   

  	
   

  	
   

  
	
  IV

  	
  FORM OF TERM NOTE

  	
   

  
	
   

  	
   

  	
   

  
	
  V

  	
  FORM OF REVOLVING NOTE

  	
   

  
	
   

  	
   

  	
   

  
	
  VI

  	
  FORM OF SWING LINE NOTE

  	
   

  
	
   

  	
   

  	
   

  
	
  VII

  	
  FORM OF COMPLIANCE CERTIFICATE

  	
   

  
	
   

  	
   

  	
   

  
	
  VIII

  	
  FORM OF OPINION OF COMPANY COUNSEL

  	
   

  
	
   

  	
   

  	
   

  
	
  IX

  	
  FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  X

  	
  FORM OF SOLVENCY CERTIFICATE

  	
   

  
	
   

  	
   

  	
   

  
	
  XI

  	
  FORM OF GUARANTY

  	
   

  
	
   

  	
   

  	
   

  
	
  XII

  	
  FORM OF SECURITY AGREEMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  XIII

  	
  FORM OF COLLATERAL ACCESS AGREEMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  XIV

  	
  FORM OF BORROWING BASE CERTIFICATE

  	
   

  

 

 

SCHEDULES

 

 

	
  1.1

  	
  CLOSING DATE MORTGAGED PROPERTIES

  	
   

  
	
   

  	
   

  	
   

  
	
  1.2

  	
  FISCAL QUARTERS

  	
   

  
	
   

  	
   

  	
   

  
	
  2.1

  	
  LENDERS’ COMMITMENTS AND PRO RATA SHARES

  	
   

  
	
   

  	
   

  	
   

  
	
  4.1C

  	
  CORPORATE AND CAPITAL STRUCTURE; OWNERSHIP;
  MANAGEMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  5.1

  	
  SUBSIDIARIES OF HOLDINGS

  	
   

  
	
   

  	
   

  	
   

  
	
  5.2B

  	
  REQUIRED APPROVALS AND CONSENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  5.5B

  	
  REAL PROPERTY

  	
   

  
	
   

  	
   

  	
   

  
	
  5.5C

  	
  INTELLECTUAL PROPERTY

  	
   

  
	
   

  	
   

  	
   

  
	
  5.6

  	
  LITIGATION

  	
   

  
	
   

  	
   

  	
   

  
	
  5.13

  	
  ENVIRONMENTAL MATTERS

  	
   

  
	
   

  	
   

  	
   

  
	
  5.14

  	
  EMPLOYEE MATTERS

  	
   

  
	
   

  	
   

  	
   

  
	
  5.16B

  	
  THIRD-PARTY FILINGS

  	
   

  
	
   

  	
   

  	
   

  
	
  6.1

  	
  FISCAL MONTHS

  	
   

  
	
   

  	
   

  	
   

  
	
  7.1

  	
  CERTAIN EXISTING INDEBTEDNESS

  	
   

  
	
   

  	
   

  	
   

  
	
  7.2

  	
  CERTAIN EXISTING LIENS

  	
   

  
	
   

  	
   

  	
   

  
	
  7.3

  	
  CERTAIN EXISTING INVESTMENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  7.9

  	
  TRANSACTIONS WITH SHAREHOLDERS AND
  AFFILIATES

  	
   

  

 

 

MAIDENFORM,
INC.

 

AMENDED
AND RESTATED CREDIT AGREEMENT

 

This AMENDED AND RESTATED CREDIT AGREEMENT is
dated as of June 29, 2005 and entered into by and among MAIDENFORM, INC., a New York corporation
and successor to MF Merger Corporation (“Company”),
MAIDENFORM BRANDS, INC., a
Delaware corporation and successor to MF Acquisition Corporation (“Holdings”), THE FINANCIAL INSTITUTIONS LISTED ON THE SIGNATURE PAGES HEREOF
(each individually referred to herein as a “Lender”
and collectively as “Lenders”) and
BNP PARIBAS (“BNP Paribas”), as administrative agent for
Lenders (in such capacity, “Administrative
Agent”).

 

R
E C I T A L S

 

WHEREAS,
Company, Holdings,
certain Lenders and BNP Paribas, as administrative agent, are parties to that
certain Credit Agreement dated as of May 11, 2004 , as amended by that certain
First Amendment to Credit Agreement dated as of December 1, 2004 (the “Original Credit Agreement”);

 

WHEREAS,
on the Restatement Date (this and other capitalized
terms used in these recitals without definition being used as defined in
subsection 1.1), Company shall prepay the Second-Lien Term Loan;

 

WHEREAS,
Lenders, at the request of Company, have agreed to
amend and restate the Original Credit Agreement in its entirety and extend
certain additional credit facilities to Company, the proceeds of which will be
used for the purposes permitted hereunder;

 

WHEREAS,
Company desires to continue to secure all of the Obligations hereunder and
under the other Loan Documents by a Lien, granted to Administrative Agent, on
behalf of Lenders, on substantially all of its real, personal and mixed
property, including all of the Capital Stock of its Domestic Subsidiaries and
65% of the Capital Stock of its Foreign Subsidiaries; and

 

WHEREAS,
Holdings and all of the Domestic Subsidiaries of Company desire to continue to
guarantee the Obligations hereunder and under the other Loan Documents and to
continue to secure their guaranties by a Lien, granted to Administrative Agent,
on behalf of Lenders, on substantially all of their real, personal and mixed
property, including all of the Capital Stock of their Domestic Subsidiaries and
65% of the Capital Stock of their Foreign Subsidiaries:

 

NOW,
THEREFORE, in consideration of the premises and the
agreements, provisions and covenants herein contained, Company, Lenders and
Administrative Agent agree that the Original Credit Agreement is hereby amended
and restated to read in its entirety as follows:

 

 

Section 1.                                          DEFINITIONS

 

1.1                               Certain
Defined Terms.

 

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

 

“Account”
means, with respect to any Person, all present and future rights of such Person
to payment for goods sold or leased or for services rendered (except those
evidenced by instruments or chattel paper), whether now existing or hereafter
arising and wherever arising, and whether or not they have been earned by
performance.

 

“Acknowledgement
by Guarantors” means that certain Acknowledgement by
Guarantors executed and delivered by Holdings and each existing Subsidiary
Guarantor on the Restatement Date.

 

“Acquisition”
means the transactions contemplated by the Acquisition Agreement.

 

“Acquisition
Agreement” means that certain Agreement and Plan of
Merger by and among Maidenform, Holdings, Merger Sub and Ares dated as of March
16, 2004, as amended by Amendment No. 1 to Agreement and Plan of Merger dated
May 3, 2004, in the form delivered to Administrative Agent and Lenders prior to
their execution of this Agreement.

 

“Active
Subsidiary” means any Subsidiary that owns assets with
a fair market value in excess of $5,000.

 

“Additional
Mortgage Policy” means an ALTA mortgagee title
insurance policy issued by the Title Company with respect to an Additional
Mortgaged Property, in amounts not less than the respective amounts designated
therein with respect to any particular Additional Mortgaged Property, insuring
fee simple title to, or a valid leasehold interest in, such Additional
Mortgaged Property vested in the relevant Loan Party and assuring
Administrative Agent that the applicable Additional Mortgage creates a valid
and enforceable First Priority mortgage Lien on the Additional Mortgaged
Property encumbered thereby, subject only to a standard survey exception, any
Permitted Encumbrances and any matters of record relating to such Additional
Mortgaged Property approved by Administrative Agent, which Additional Mortgage
Policy (i) shall include an endorsement for mechanics’ liens, for future
advances under this Agreement or the deletion of the standard mechanics’ lien
exception and for any other matters reasonably requested by Administrative
Agent, provided that such endorsements are available at a reasonable
cost in the jurisdiction in which the applicable Additional Mortgaged Property
is located and (ii) shall provide for affirmative insurance and such
reinsurance as Administrative Agent may reasonably request, all of the
foregoing in form and substance reasonably satisfactory to Administrative
Agent.

 

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

 

2

 

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

 

“Adjusted
LIBOR” means, for each Interest Period in respect of
any LIBOR Loan, an interest rate per annum (rounded upward, if necessary, to
the nearest 1/16 of 1%) determined pursuant to the following formula:

 

	
  Adjusted LIBOR =

  	
   

  	
  LIBOR

  
	
   

  	
   

  	
  1.00 – Eurodollar Reserve Percentage

  

 

Adjusted LIBOR
shall be adjusted automatically as of the effective date of any change in the
Eurodollar Reserve Percentage.

 

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

 

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

 

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

 

“Affiliate”,
as applied to any Person, means any other Person directly or indirectly
controlling, controlled by, or under common control with, that Person. For the
purposes of this definition, “control” (including, with correlative meanings,
the terms “controlling”, “controlled by” and “under common control with”), as
applied to any Person, means the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of that
Person, whether through the ownership of voting securities or by contract or
otherwise.  For the avoidance of doubt,
neither BNP Paribas nor any of its Affiliates shall be deemed to be an
Affiliate of any Loan Party.

 

“Agents”
means Administrative Agent, Sole Lead Arranger and Syndication Agent.

 

“Aggregate
Amounts Due” has the meaning assigned to that term in
subsection 10.5.

 

“Agreement”
means this Amended and Restated Credit Agreement dated as of June 29, 2005.

 

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

 

“Ares”
means Ares Corporate Opportunities Fund, L.P.

 

“Asset
Sale” means the sale by Company or any of its
Subsidiaries to any Person other than Company or any of its wholly-owned
Subsidiaries of (i) any of the Capital Stock of any of Company’s
Subsidiaries, (ii) substantially all of the assets of any division or line
of 

 

3

 

business of Company or any of its
Subsidiaries, or (iii) any other assets (whether tangible or intangible)
of Company or any of its Subsidiaries including, without limitation, in
connection with any sale and leaseback transaction (other than (a) inventory
sold in the ordinary course of business, (b) sales, assignments, transfers or
dispositions of accounts in the ordinary course of business for purposes of
collection, (c) Cash and Cash Equivalents and (d) any such other assets to the
extent that the aggregate value of such assets sold in any single transaction
or related series of transactions is equal to $250,000 or less).

 

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

 

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

 

“Base
Rate” means, for any day, a rate per annum (rounded
upwards to the nearest 1/100 of 1%) equal to the greater of (i) the Prime
Rate in effect on such day and (ii) the Federal Funds Effective Rate in
effect on such day plus 1/2 of 1%.  If,
for any reason, Administrative Agent shall have determined (which determination
shall be conclusive absent manifest error) that it is unable to ascertain the
Federal Funds Effective Rate, including the inability or failure of
Administrative Agent to obtain sufficient quotations in accordance with the
terms hereof, the Base Rate shall be determined without regards to clause (ii)
of the first sentence of this definition until the circumstances giving rise to
such inability no longer exist.  Any
change in the Base Rate due to a change in the Prime Rate or the Federal Funds
Effective Rate shall be effective on the effective date of such change in the
Prime Rate or the Federal Funds Effective Rate, respectively.

 

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

 

“Base
Rate Margin” means the margin over the Base Rate used
in determining the rate of interest of Base Rate Loans pursuant to subsection
2.2A.

 

“BNP
Paribas” has the meaning assigned to that term in the
introduction to this Agreement.

 

“Borrowing
Base” means, as at any date of determination, an
aggregate amount equal to:

 

(i)                                     85%
of Eligible Receivables; plus

 

(ii)                                  50%
of Eligible Inventory; minus

 

(iii)                               reserves
from time to time established in good faith by Administrative Agent in its
reasonable credit judgment;

 

provided that Administrative Agent may, in its
reasonable credit judgment based on its analysis of material changes arising
after the Closing Date in the value of Eligible Receivables and/or 

 

4

 

Eligible
Inventory, revise from time to time the value of any individual item of
Eligible Receivables and/or Eligible Inventory that shall be used in
determining the Borrowing Base (i) on at least 15 days’ prior written notice to
Company, to reflect its reasonable estimate of declines in value of the
Eligible Receivables or Eligible Inventory, as the case may be, or (ii) on at
least two Business Days’ prior written notice to Company, to the extent that
the calculation of such value is not in accordance with this Agreement.

 

“Borrowing
Base Certificate” means a certificate substantially in
the form of Exhibit XIV annexed hereto.

 

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

 

“Canadian
Dollars” means the lawful money of Canada.

 

“Canadian
Exchange Rate” means, for any date with respect to
which an amount expressed in Canadian Dollars is to be determined with respect
to any Account, the nominal rate of exchange of Administrative Agent in the New
York foreign exchange market for the sale of Canadian Dollars in exchange for
Dollars at 12:00 noon (New York time) one Business Day prior to such date,
expressed as a number of units of Canadian Dollars per one Dollar.

 

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

 

“Capital
Stock” means the capital stock or other equity
interests of a Person, including options, warrants and other rights to acquire
such capital stock or equity interests.

 

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

 

“Cash
Equivalents” means, as at any date of determination,
(i) marketable securities (a) issued or directly and unconditionally guaranteed
as to interest and principal by the United States Government or (b) issued by
any agency of the United States the obligations of which are backed by the full
faith and credit of the United States, in each case maturing within one year
after such date; (ii) marketable direct obligations issued by any state of the
United States or any political subdivision of any such state or any public
instrumentality thereof, in each case maturing within one year after such date
and having, at the time of the acquisition thereof, the highest rating
obtainable from either S&P or Moody’s; (iii) commercial paper maturing no
more than one year from the date of creation thereof and having, at the time of
the acquisition thereof, a rating of at least A-1 from S&P or at least P-1
from Moody’s; (iv) certificates of 

 

5

 

deposit or bankers’ acceptances maturing
within one year after such date and issued or accepted by any Lender or by any
commercial bank organized under the laws of the United States or any state
thereof or the District of Columbia that (a) is at least “adequately
capitalized” (as defined in the regulations of its primary federal banking
regulator) and (b) has Tier 1 capital (as defined in such regulations) of not
less than $100,000,000; (v) shares of any money market mutual fund that (a) has
at least 95% of its assets invested continuously in the types of investments
referred to in clauses (i), (ii), (iii), (iv), (vi), and (vii) of this
paragraph and (b) has net assets of not less than $500,000,000; (vi) repurchase
obligations with a term of not more than 90 days for underlying securities of
the type described in clauses (i) and (ii) above entered into with any Lender
or any commercial bank meeting the criteria set forth in clause (iv) above; and
(vii) repurchase agreements and reverse repurchase agreements relating to
investments of the type described in clauses (i) and (ii) above, in each case
maturing 90 days or less from the date of acquisition; provided that the
terms of such agreements comply with the guidelines set forth in the Federal
Financial Agreements of Depository Institutions with Securities Dealers and
Others, as adopted by the Comptroller of Currency on October 31, 1985.

 

“Certificate
of Merger” means the Certificate of Merger dated as of
May 11, 2004 by and between Merger Sub and Maidenform, in the form delivered to
Administrative Agent and Lenders prior to their execution of this Agreement.

 

“Change
in Control” means (i) prior to the date of the IPO,
any of the following: (a) Ares, Oaktree, and their respective Affiliates
collectively shall cease to beneficially own and control at least a majority of
the issued and outstanding shares of Capital Stock of Holdings entitled
(without regard to the occurrence of any contingency) to vote for the election
of members of the Governing Body of Holdings, on a fully diluted basis, unless
(1) Ares, Oaktree and their respective Affiliates collectively beneficially own
and control at least 35%, on a fully diluted basis, of the issued and
outstanding shares of Capital Stock of Holdings entitled (without regard to the
occurrence of any contingency) to vote for the election of members of the
Governing Body of Holdings, (2) no other Person directly or indirectly
beneficially owns and controls, on a fully diluted basis, a greater percentage
of the issued and outstanding shares of Capital Stock of Holdings entitled
(without regard to the occurrence of any contingency) to vote for the election
of members of the Governing Body of Holdings than the percentage beneficially
owned and controlled by Ares and its Affiliates collectively and (3) no other
Person, either individually or acting in concert with one or more other
Persons, directly or indirectly beneficially owns and controls, on a fully
diluted basis, 30% of the issued and outstanding shares of Capital Stock of
Holdings entitled (without regard to the occurrence of any contingency) to vote
for the election of members of the Governing Body of Holdings; (b) the
occurrence of a change in the composition of the Governing Body of Holdings or
Company such that a majority of the members of any such Governing Body are not
Continuing Members; and (c) the failure at any time of Holdings to legally and
beneficially own and control 100% of the issued and outstanding shares of
Capital Stock of Company or the failure at any time of Holdings to have the
ability to elect all of the Governing Body of Company and (ii) on and after the
date of the IPO, any of the following: (a) any Person (other than Ares, Oaktree
or their respective Affiliates), either individually or acting in concert with
one or more other Persons (other than Ares, Oaktree or their respective
Affiliates), shall have acquired beneficial ownership, directly or 

 

6

 

indirectly, of Capital Stock of Holdings (or
other Capital Stock convertible into such Capital Stock) representing 35% or
more of the combined voting power of all Capital Stock of Holdings entitled to
vote in the election of members of the Governing Body of Holdings, other than
Capital Stock having such power only by reason of the happening of a
contingency; (b) the occurrence of a change in the composition of the Governing
Body of Holdings such that a majority of the members of any such Governing Body
are not Continuing Members; and (c) and the failure at any time of Holdings to
legally and beneficially own and control 100% of the issued and outstanding
shares of Capital Stock of Company or the failure at any time of Holdings to
have the ability to elect all of the Governing Body of Company.  As used herein, the term “beneficially own”
or “beneficial ownership” shall have the meaning set forth in the Exchange Act
and the rules and regulations promulgated thereunder.

 

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

 

“Closing
Date” means the date on which the initial Loans were
made under the Original Credit Agreement.

 

“Closing
Date Mortgaged Property” means any of the Real
Property Assets listed on Schedule 1.1 annexed hereto.

 

“Closing
Date Mortgages” means each of the mortgages
encumbering a Closing Date Mortgaged Property for the benefit of Administrative
Agent, on behalf of Lenders, and dated as of the Closing Date.

 

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

 

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

 

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

 

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

 

7

 

“Commercial
Letter of Credit” means any letter of credit or
similar instrument issued for the purpose of providing the primary payment
mechanism in connection with the purchase of any materials, goods or services
by Company or any of its Subsidiaries in the ordinary course of business of
Company or such Subsidiary.

 

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

 

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

 

“Company”
has the meaning assigned to that term in the introduction to this Agreement.

 

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

 

“Confidential
Information Memorandum” means the Confidential
Information Memorandum dated June 2005 and any supplement thereto prepared by
Company relating to the credit facilities evidenced by this Agreement.

 

“Consolidated
Capital Expenditures” means, for any period, the sum
of the aggregate of all expenditures (whether paid in cash or other
consideration or accrued as a liability and including that portion of Capital
Leases which is capitalized on the consolidated balance sheet of Company and
its Subsidiaries) by Company and its Subsidiaries during that period that, in
conformity with GAAP, are included in “additions to property, plant or
equipment” or comparable items reflected in the consolidated statement of cash
flows of Company and its Subsidiaries. 
For purposes of this definition, (i) the purchase price of equipment
that is purchased simultaneously with the trade-in of existing equipment or
with insurance proceeds shall be included in Consolidated Capital Expenditures
only to the extent of the gross amount of such purchase price less the credit
granted by the seller of such equipment for the equipment being traded in at
such time or the amount of such proceeds, as the case may be and (ii) amounts
expended under subsections 7.3(v), (vi) and (vii) or amounts constituting Net
Asset Sales Proceeds and Net Insurance/Condemnation Proceeds reinvested in
accordance with subsection 2.4B(iii)(a), 2.4B(iii)(b) or 6.4C by Company and
its Subsidiaries shall not be included in Consolidated Capital Expenditures.

 

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

 

8

 

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

 

“Consolidated
Current Liabilities” means, as at any date of
determination, the total liabilities of Company and its Subsidiaries on a
consolidated basis which may properly be classified as current liabilities in
conformity with GAAP, excluding the current portions of Funded Debt and
Capital Leases.

 

“Consolidated
EBITDA” means, for any period, the sum, without
duplication, of the amounts for such period of (i) Consolidated Net
Income; provided that there
shall be excluded (a) the income (or loss) of any Person (other than a
Subsidiary of Company) in which any other Person (other than Company or any of
its Subsidiaries) has a joint interest, except to the extent of the amount of
dividends or other distributions actually paid to Company or any of its
Subsidiaries by such Person during such period, (b) the income (or loss)
of any Person accrued prior to the date it becomes a Subsidiary of Company or
is merged into or consolidated with Company or any of its Subsidiaries or that
Person’s assets are acquired by Company or any of its Subsidiaries,
(c) the income of any Subsidiary of Company to the extent that the
declaration or payment of dividends or similar distributions by that Subsidiary
of that income is not at the time permitted by operation of the terms of its
charter or any agreement, instrument, judgment, decree, order, statute, rule or
governmental regulation applicable to that Subsidiary, (d) any after-tax
gains or losses attributable to Asset Sales or returned surplus assets of any
Pension Plan, and (e) (to the extent not included in clauses
(a) through (d) above) any net unusual or nonrecurring gains or net
non-cash unusual or nonrecurring losses, plus (ii) Consolidated Interest
Expense, plus (iii) provisions for taxes based on income plus
(iv) total depreciation expense plus (v) total amortization
expense plus (vi) other non-cash items (other than any such
non-cash item to the extent it represents an accrual of or reserve for cash
expenditures in any future period) plus (vii) net cash charges incurred
in connection with the closure of and consequent termination of ordinary course
business activities at retail outlet Facilities to the extent that such cash
charges have not actually been paid plus (viii) fees, costs and expenses
incurred on or prior to the Closing Date in connection with the transactions
contemplated by the Acquisition Agreement plus (ix) fees paid pursuant
to the Management Agreement and permitted under subsection 7.9 plus (x)
rating agency fees paid to obtain or maintain ratings on Indebtedness of
Company and its Subsidiaries plus (xi) net cash charges incurred in
connection with the closure of the Florida Facility and the Mexican Facilities
in an aggregate amount not to exceed $7,000,000 plus or minus (xii) any
non-cash charges, adjustments and expenses after the Closing Date relating to
the application of purchase accounting plus (xiii) fees, costs and
expenses incurred on or prior to the Restatement Date in connection with the
amendment of the Original Credit Agreement as provided herein and obtaining any
waivers, consents or approvals from any of the Lenders to effect any of the
transactions contemplated herein and in connection with any waivers, consents
or approvals obtained from any Lenders to effect any of the transactions
contemplated hereby, plus (xiv) the IPO Fees paid directly by Company, plus
(xv) the Management Bonuses, provided that the aggregate amount of the
Management Bonuses together with the amount of the Permitted Dividend Payment
shall not exceed $15,000,000, but only, in the case of clauses (ii)-(xv), to
the extent deducted in the calculation of Consolidated Net Income, less
non-cash items added in the 

 

9

 

calculation of Consolidated Net Income (other
than any such non-cash item to the extent it will result in the receipt of cash
payments in any future period and any non-cash items netted against non-cash
charges in clause (vi)), all of the foregoing as determined on a consolidated
basis for Company and its Subsidiaries in conformity with GAAP.

 

“Consolidated
Excess Cash Flow” means, for any period, an amount (if
positive) equal to (i) the sum, without duplication, of the amounts for such
period of (a) Consolidated EBITDA and (b) the Consolidated Working Capital
Adjustment minus (ii) the sum, without duplication, of the amounts
for such period of (a) mandatory repayments of the Obligations (but only to the
extent the funds applied for such purpose are included in the calculation of
Consolidated EBITDA, and, in any case, excluding repayments of Revolving Loans
except to the extent the Revolving Loan Commitment Amount is permanently
reduced in connection with such repayments), (b) scheduled repayments of
Consolidated Total Debt and Restricted Junior Payments made in accordance with
subsection 7.5, (c) Consolidated Capital Expenditures (net of any proceeds of
any related financings with respect to such expenditures),
(d) Consolidated Cash Interest Expense, (e) current taxes based on
income of Company and its Subsidiaries and payable in cash with respect to such
period and (f) the aggregate amount of cash items contemplated by clauses
(vii), (viii), (ix), (x), (xi), (xiii), (xiv) and (xv) of the definition of
Consolidated EBITDA.

 

“Consolidated
Fixed Charges” means, for any period, the sum (without
duplication) of the amounts for such period of (i) Consolidated Cash
Interest Expense, (ii) scheduled principal payments in respect of
Consolidated Total Debt (excluding the aggregate amount of all rents paid or
payable during that period under all Capital Leases to which Company or any of
its Subsidiaries is a party as lessee), provided that for purposes of
this definition payments under subsection 2.4 required on or after the Fiscal
Quarter ending October 3, 2009 shall be deemed to each be in an amount of
$375,000, (iii) provisions for actual federal, state and local income Taxes
paid to any Government Authority, calculated so as to take into account net
operating loss carry-forwards, credits and other tax benefits available to
Company and its Subsidiaries and (iv) Restricted Junior Payments (other
than the IPO Fees Payment and the Permitted Dividend Payment, provided
that the amount of the Permitted Dividend Payment together with the aggregate
amount of the Management Bonuses shall not exceed $15,000,000), all of the
foregoing as determined on a consolidated basis for Company and its
Subsidiaries in conformity with GAAP.

 

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

 

10

 

“Consolidated
Leverage Ratio” means, as of the last day of any
Fiscal Quarter, the ratio of (i) Consolidated Total Debt as at such day to (ii)
Consolidated EBITDA for the consecutive four Fiscal Quarters ending on such
day.

 

“Consolidated
Net Income” means, for any period, the net income (or
loss) of Company and its Subsidiaries on a consolidated basis for such period
taken as a single accounting period determined in conformity with GAAP.

 

“Consolidated
Total Debt” means, without duplication, as at any date
of determination, the sum of (i) the aggregate stated balance sheet amount of
all Indebtedness of Company and its Subsidiaries, determined on a consolidated
basis in accordance with GAAP and (ii) the Commercial Letter of Credit Usage.

 

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

 

“Consolidated
Working Capital Adjustment” means, for any period on a
consolidated basis, the amount (which may be a negative number) by which
Consolidated Working Capital as of the beginning of such period exceeds (or is
less than) Consolidated Working Capital as of the end of such period; provided
that in each case such amounts shall be increased or decreased by any net
non-cash purchase accounting adjustment contemplated by clause (xii) of the
definition of Consolidated EBITDA.

 

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

 

11

 

“Continuing
Member” means, as of any date of determination any
member of the Governing Body of Holdings or Company who (i) was a member of
such Governing Body on the Closing Date or (ii) was nominated for election or
elected to such Governing Body with the affirmative vote of a majority of the
members who were either members of such Governing Body on the Closing Date or
whose nomination or election was previously so approved.

 

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

 

“Control
Agreement” means an agreement, reasonably satisfactory
in form and substance to Administrative Agent and executed by the financial
institution or securities intermediary at which a Deposit Account or a
Securities Account, as the case may be, is maintained, pursuant to which such
financial institution or securities intermediary confirms and acknowledges
Administrative Agent’s security interest in such account and undertakes such
other matters as Administrative Agent reasonably deems appropriate.

 

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

 

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

 

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

 

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

 

“EDGAR”
means the Electronic Data Gathering, Analysis, and Retrieval system maintained
by the Securities and Exchange Commission.

 

“Eligible
Assignee” means (i) any Lender, any Affiliate of any
Lender, any Approved Fund of any Lender and Ares and its Affiliates, provided
that in the case of any assignment of a Revolving Loan Commitment such Person
shall have net assets of not less than $100,000,000; or (ii) (a) a commercial
bank organized under the laws of the United States or any state thereof;
(b) a savings and loan association or savings bank organized under the
laws of the United States or any state thereof; or (c) a commercial bank
organized under the laws of any other country or a political subdivision
thereof; provided that (1) such bank is acting through a branch or
agency located in the United States or (2) such bank is organized under
the laws of a country that is a member of the Organization for Economic
Cooperation and Development or a political subdivision of such country; provided,
further, that for purposes of clauses (a), (b) and (c) above in the case
of any assignment of a Revolving Loan Commitment such Person shall be at least “adequately
capitalized” (as defined in the regulations of its primary banking regulator) 

 

12

 

and shall have Tier 1 capital (as defined in
such regulations) of not less than $100,000,000; or (d) any other entity
that is an “accredited investor” (as defined in Regulation D under the
Securities Act) that extends credit or buys loans as one of its businesses
including insurance companies, mutual funds and lease financing companies, provided
that in the case of any assignment of a Revolving Loan Commitment such Person
shall have net assets of not less than $100,000,000; provided that in no
case shall Company or any Affiliate of Company (other than Ares and its
Affiliates) be an Eligible Assignee.

 

“Eligible
Inventory” means, with respect to Company and each
Subsidiary Guarantor, the aggregate amount of Inventory of such Loan Party; provided
that an item of Inventory shall not be included in Eligible Inventory if:

 

(a)                                  it
is not owned solely by such Loan Party or such Loan Party does not have good,
valid and marketable title thereto; or

 

(b)                                 it
is not located in the United States; or

 

(c)                                  it
is not located on or in transit to property owned or leased by such Loan Party
or in a contract warehouse and segregated or otherwise separately identifiable
from goods of others, if any, stored on the premises; provided that from
and after the date that is 90 days after the Closing Date unless Administrative
Agent has received with respect to such inventory a Collateral Access Agreement
executed by any applicable mortgagee, lessor or contract warehouseman, as the
case may be, such Inventory will be subject to a collateral access and rent
reserve in an aggregate amount equal to one months’ rent or one months’ average
processing charges, as applicable, for such property or warehouse space; or

 

(d)                                 it
is not subject to a valid and perfected First Priority Lien in favor of
Administrative Agent except for Liens for unpaid rent and/or normal and
customary warehousing charges; or

 

(e)                                  it
consists of work-in-process, packaging or shipping materials or otherwise does
not consist of finished goods or raw materials, or it consists of non-standard
customized goods returned or rejected by such Loan Party’s customers; or

 

(f)                                    it
is obsolete, damaged, defective or unmerchantable or does not otherwise conform
to the representations and warranties contained in the Loan Documents; or

 

(g)                                 it
is not currently either usable or salable, at prices approximating at least
cost, in the normal course of Company’s business; or

 

(h)                                 it
contains or bears any Intellectual Property licensed to Company or any
Subsidiary Guarantor by any Person, if Administrative Agent is not satisfied
that it may sell or otherwise dispose of such Inventory in accordance with the
terms of the Security Agreement without infringing the rights of the licensor
of such Intellectual Property or violating any contract with such licensor (and
without payment of any royalties other 

 

13

 

than any royalties due with respect to the sale or disposition of such
Inventory pursuant to the existing license agreement), and, as to which Company
has not delivered to Administrative Agent a consent or sublicense agreement
from such licensor in form and substance acceptable to Administrative Agent if
requested, except, to the extent that Company is able to re-label and sell such
Inventory in the ordinary course of business, such Inventory is otherwise
Eligible Inventory and Company reduces the value claimed for such Inventory in
an amount equal to the reasonably estimated re-labeling costs; or

 

(i)                                     it
consists of bill-and-hold goods, or it is Inventory placed on consignment.

 

In determining
the amount to be so included, Inventory shall be valued at the lower of cost or
market on a FIFO basis consistent with such Loan Party’s current and historical
accounting practice.

 

“Eligible
Receivables” means, with respect to Company and each
Subsidiary Guarantor, all Accounts of such Loan Party; provided that an
Account shall not be an Eligible Receivable if:

 

(a)                                  it
arises out of a sale made by such Loan Party to an Affiliate, an agent of
any Loan Party or a natural person; or

 

(b)                                 it
is unpaid more than the earlier of (i) 90 days after the date of the original
invoice or (ii) 60 days after the original due date; or

 

(c)                                  25%
or more of all Accounts from the account debtor for such Account are ineligible
under (b) above, or 25% or more of all Accounts from the account debtor for
such Account and its Affiliates are ineligible under (b) above; or

 

(d)                                 when
aggregated with all other Accounts of the account debtor for such Account and
its Affiliates, such Account exceeds 25% in face value of all Accounts of such
Loan Party then outstanding, but only to the extent of such excess, unless such
excess is supported by an irrevocable letter of credit satisfactory to
Administrative Agent (as to form, substance and issuer) and assigned to and
directly drawable by Administrative Agent; provided that for any period
during which, and continuing until 180 days after which, Kohl’s Corporation has
a corporate credit rating of at least B1 from Moody’s or B+ from S&P, such
percentage shall be increased to 40% with respect to Accounts for which Kohl’s
Corporation is the account debtor; or

 

(e)                                  the
account debtor for such Account (or any of its Affiliates) is a creditor of
such Loan Party, has or has asserted a right of setoff against such Loan Party,
or has disputed its liability or otherwise has made any claim with respect to
such Account or any other Account which has not been resolved, in each case to
the extent of the amount owed by such Loan Party to such account debtor (or
such Affiliate), the amount of such actual or asserted right of setoff, or the
amount of such dispute or claim, as the case may be; or

 

14

 

(f)                                    the
account debtor for such Account (or any of its Affiliates) is (or its assets or
its Affiliate’s assets are) the subject of an Insolvency Event; or

 

(g)                                 such
Account is not payable in Dollars or Canadian Dollars or the account debtor for
such Account is located outside the United States, its territories and
possessions or Canada, unless such Account is supported by an irrevocable
letter of credit satisfactory to Administrative Agent (as to form, substance
and issuer) and assigned to and directly drawable by Administrative Agent; or

 

(h)                                 the
sale to the account debtor for such Account is on a bill-and-hold, guarantied
sale, sale-and-return, sale on approval, progress billing or consignment basis
or made pursuant to any other written agreement providing for repurchase or
return; or

 

(i)                                     the
account debtor for such Account is the United States of America or any
department, agency or instrumentality thereof, unless such Loan Party duly assigns
its rights to payment of such Account to Administrative Agent pursuant to the
Assignment of Claims Act of 1940, as amended (31 U.S.C. §§ 3727 et seq.);
or

 

(j)                                     risk
of loss has not passed to the buyer of the goods giving rise to such Account or
such Account otherwise does not represent a final sale; or

 

(k)                                  with
respect to such Account (or any other Account due from the account debtor for
such Account), in whole or in part, a check, promissory note, draft, trade
acceptance or other instrument for the payment of money has been received,
presented for payment and returned uncollected for any reason; or

 

(l)                                     the
filing of a notice of business activities report or similar report required in
order to permit such Loan Party to seek judicial enforcement of payment of such
Account is required but such filing has not been made and accepted, unless such
failure to file and inability to seek judicial enforcement is capable of being
remedied without any material delay or material cost; or

 

(m)                               such
Account is not subject to a valid and perfected First Priority Lien in favor of
Administrative Agent or does not otherwise conform to the representations and
warranties contained in the Loan Documents.

 

In determining
the amount to be so included, the face amount of such Accounts shall be reduced
by the amount of all sales, excise or similar taxes and all returns, discounts,
deductions, claims, credits, charges, or other allowances.  Amounts of Accounts payable in Canadian
Dollars shall be calculated by reference to the Canadian Exchange Rate.

 

“Employee
Benefit Plan” means any “employee benefit plan” as
defined in Section 3(3) of ERISA which is or was maintained or contributed to
by Company, any of its Subsidiaries or any of their respective ERISA
Affiliates.

 

15

 

“Environmental
Claim” means any notice, notice of violation, claim,
action, suit, demand, abatement order or other order or directive, by any
Government Authority or any other Person, based on any actual or alleged violation
of or liability under any Environmental Law, including any actual or alleged
Release.

 

“Environmental
Laws” means any and all current or future statutes,
ordinances, orders, rules, regulations, judgments, Governmental Authorizations,
or any other requirements of any Government Authority relating to pollution or
protection of the environment including those relating to any Release or
threatened Release or the generation, use, storage, transportation or disposal
of Hazardous Materials, or occupational safety and health.

 

“Equity
Investors” means Ares, certain of its Affiliates,
Rollover Investors, their several successors and assigns and other investors
reasonably satisfactory to Administrative Agent.

 

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

 

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

 

“ERISA
Event” means (i) a “reportable event” within the
meaning of Section 4043 of ERISA and the regulations issued thereunder with
respect to any Pension Plan (excluding those for which the provision for 30-day
notice to the PBGC has been waived by regulation); (ii) the failure to meet the
minimum funding standard of Section 412 of the Internal Revenue Code with
respect to any Pension Plan (whether or not waived in accordance with Section
412(d) of the Internal Revenue Code) or the failure to make by its due date a
required installment under Section 412(m) of the Internal Revenue Code with
respect to any Pension Plan or the failure of Company, any Subsidiary of
Company or any of their respective ERISA Affiliates to make any required
contribution to a Multiemployer Plan; (iii) the provision by the administrator
of any Pension Plan pursuant to Section 4041(a)(2) of ERISA of a notice of
intent to terminate such plan in a distress termination described in Section
4041(c) of ERISA; (iv) the withdrawal by Company, any of its Subsidiaries or
any of their respective ERISA Affiliates from any Pension Plan with two or more
contributing sponsors at least two of which are not under common control or the
termination of any such Pension Plan resulting in liability of Company, 

 

16

 

any Subsidiary of Company or any of their
respective ERISA Affiliates pursuant to Section 4063 or 4064 of ERISA; (v) the
institution by the PBGC of proceedings to terminate any Pension Plan, or the
occurrence of any event or condition which might constitute grounds under ERISA
for the termination of, or the appointment of a trustee to administer, any
Pension Plan; (vi) the imposition of liability on Company, any of its
Subsidiaries or any of their respective ERISA Affiliates pursuant to Section
4062(e) or 4069 of ERISA or by reason of the application of Section 4212(c) of
ERISA; (vii) the withdrawal of Company, any of its Subsidiaries or any of their
respective ERISA Affiliates in a complete or partial withdrawal (within the
meaning of Sections 4203 and 4205 of ERISA) from any Multiemployer Plan if
there is any liability therefor, or the receipt by Company, any of its
Subsidiaries or any of their respective ERISA Affiliates of notice from any
Multiemployer Plan that it is in reorganization or insolvency pursuant to
Section 4241 or 4245 of ERISA, or that it intends to terminate or has
terminated under Section 4041A or 4042 of ERISA; (viii) the assertion of a
material claim (other than routine claims for benefits) against any Employee
Benefit Plan other than a Multiemployer Plan or the assets thereof, or against
Company, any of its Subsidiaries or any of their respective ERISA Affiliates in
connection with any Employee Benefit Plan; (ix) receipt from the Internal
Revenue Service of notice of the failure of any Pension Plan (or any other
Employee Benefit Plan intended to be qualified under Section 401(a) of the
Internal Revenue Code) to qualify under Section 401(a) of the Internal Revenue
Code, or the failure of any trust forming part of any Pension Plan to qualify
for exemption from taxation under Section 501(a) of the Internal Revenue Code;
or (x) the imposition of a Lien pursuant to Section 401(a)(29) or 412(n) of the
Internal Revenue Code or pursuant to ERISA with respect to any Pension Plan.

 

“Eurodollar
Reserve Percentage” means the reserve percentage
(expressed as a decimal, rounded upward, if necessary, to the nearest 1/100 of
1%) in effect on the date LIBOR for such Interest Period is determined (whether
or not applicable to any Lender) under regulations issued from time to time by
the Federal Reserve Board for determining the maximum reserve requirement
(including any emergency, supplemental or other marginal reserve requirement)
with respect to Eurocurrency funding (currently referred to as “Eurocurrency
liabilities”) having a term comparable to such Interest Period.

 

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

 

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

 

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

 

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

 

17

 

received by Administrative Agent from three
federal funds brokers of recognized standing selected by Administrative Agent.

 

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

 

“First
Priority” means, with respect to any Lien purported to
be created in any Collateral pursuant to any Collateral Document, that (i) such
Lien is perfected and has priority over any other Lien on such Collateral
(other than senior Liens permitted pursuant to subsection 7.2A), provided
that with respect to Capital Stock of Foreign Subsidiaries constituting
Collateral, a First Priority Lien shall be deemed to exist upon delivery of such
Capital Stock, with stock powers endorsed in blank, to Administrative Agent on
behalf of the Lenders, and (ii) such Lien is the only Lien (other than Liens
permitted pursuant to subsection 7.2A) to which such Collateral is subject.

 

“Fiscal
Month” means, with respect to Holdings and its
Subsidiaries, the approximately one-month period ending each month on a day not
earlier than the tenth Business Day before the last day of such month, as
determined in accordance with GAAP from time to time by Company in the ordinary
course of its business, as the context may require, or, if any Subsidiary was
not in existence on the first day of any such period, the period commencing on
the date on which such Subsidiary is incorporated, organized, formed or
otherwise created and ending on the last day of such period.

 

“Fiscal
Quarter” means a fiscal quarter of any Fiscal
Year.  Schedule 1.2 hereof sets
forth the ending date for each Fiscal Quarter of Fiscal Years 2003 through
2010.

 

“Fiscal
Year” means the fiscal year of Holdings and its
Subsidiaries ending on the last day of any fourth Fiscal Quarter.

 

“Flood
Hazard Property” means a Closing Date Mortgaged
Property or an Additional Mortgaged Property located in an area designated by
the Federal Emergency Management Agency as having special flood or mud slide
hazards.

 

“Florida
Facility” means the Facility located at 6500
Youngerman Circle, Jacksonville, Florida.

 

“Foreign
Plan” means any employee benefit plan maintained by
Company or any of its Subsidiaries that is mandated or governed by any law,
rule or regulation of any Government Authority other than the United States,
any state thereof or any other political subdivision thereof.

 

“Foreign
Pledge Agreement” means each stock pledge agreement or
similar instrument governed by the laws of a country other than the United
States, executed on the Closing Date or from time to time thereafter in
accordance with subsection 6.8 by Company or any Domestic Subsidiary that owns
Capital Stock of one or more Foreign Subsidiaries organized in such country, in
form and substance reasonably satisfactory to Administrative Agent.

 

18

 

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

 

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

 

“Funded
Current Liability Percentage” means “funded current
liability percentage” within the meaning of Section 412(1)(8)(B) of the
Internal Revenue Code.

 

“Funded
Debt”, as applied to any Person, means all
Indebtedness of that Person (including any current portions thereof) which by
its terms or by the terms of any instrument or agreement relating thereto
matures more than one year from, or is directly renewable or extendable at the
option of that Person to a date more than one year from (including an option of
that Person under a revolving credit or similar agreement obligating the lender
or lenders to extend credit over a period of one year or more from), the date
of the creation thereof.

 

“Funding
and Payment Office” means (i) the office of
Administrative Agent and Swing Line Lender located at 919 Third Avenue, New
York, New York 10022 or (ii) such other office of Administrative Agent and
Swing Line Lender as may from time to time hereafter be designated as such in a
written notice delivered by Administrative Agent and Swing Line Lender to
Company and each Lender.

 

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

 

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

 

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

 

“Government
Authority” means any governmental or regulatory body,
court, commission, central bank, board, bureau or organ or instrumentality
thereof, in each case whether federal, state, local or foreign (including
supra-national bodies such as the European Union or the European Central Bank).

 

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

 

19

 

“Guaranty”
means the Guaranty executed and delivered by Holdings and existing Domestic
Subsidiaries of Company on the Closing Date and to be executed and delivered by
additional Domestic Subsidiaries of Company from time to time thereafter in
accordance with subsection 6.8, substantially in the form of Exhibit XI
annexed hereto.

 

“Hazardous
Materials” means any chemical, material, substance,
waste, pollutant or contaminant, including any oil, petroleum, petroleum
fraction or petroleum derived substance and any asbestos-containing materials,
which is regulated under any applicable Environmental Law.

 

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

 

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

 

“Holdings”
has the meaning assigned to that term in the introduction to this Agreement.

 

“Holdings
Certificate of Designations” means the provisions of
Holdings’ Amended and Restated Certificate of Incorporation relating to the
Holdings Perpetual Preferred Stock, in the form delivered to Agent and Lenders
prior to their execution of this Agreement.

 

“Holdings
Common Stock” means the common stock of Holdings, par
value $0.01 per share.

 

“Holdings
Perpetual Preferred Stock” means the 15% Series A
Cumulative Perpetual Preferred Stock of Holdings, par value $0.01 per share,
with a liquidation preference of $100 per share and with the other terms set
forth in the Holdings Certificate of Designations.

 

“Indebtedness”,
as applied to any Person, means (i) all indebtedness for borrowed money,
(ii) that portion of obligations with respect to Capital Leases that is
properly classified as a liability on a balance sheet in conformity with GAAP,
(iii) notes payable and drafts accepted representing extensions of credit
whether or not representing obligations for borrowed money, (iv) any
obligation owed for all or any part of the deferred purchase price of property
or services (excluding any such obligations incurred under ERISA or earn-out
obligations incurred in connection with Permitted Acquisitions (but only to the
extent such earn-out obligations are not considered indebtedness under GAAP)),
which purchase price is (a) due more than six months from the date of
incurrence of the obligation in respect thereof or (b) evidenced by a note or
similar written instrument, (v) Synthetic Lease Obligations, and (vi) all
indebtedness secured by any Lien on any property or asset owned or held by that
Person 

 

20

 

regardless of whether the indebtedness
secured thereby shall have been assumed by that Person or is nonrecourse to the
credit of that Person.  Obligations under
Interest Rate Agreements and Currency Agreements constitute (1) in the case of
Hedge Agreements, Contingent Obligations, and (2) in all other cases,
Investments, and in neither case constitute Indebtedness.

 

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

 

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

 

“Insolvency
Event” means, with respect to any Person, the
occurrence of any of the events described in subsection 8.6 or 8.7; provided
that, solely for purposes of this definition, any references to Holdings or any
of its Subsidiaries in subsection 8.6 or 8.7 shall be deemed to be a reference
to such Person.

 

“Intellectual
Property” means all patents, trademarks, tradenames,
copyrights, technology, software, know-how and processes used in or necessary
for the conduct of the business of Company and its Subsidiaries.

 

“Intercreditor
Agreement” means that certain Intercreditor Agreement
executed and delivered on the Closing Date between Administrative Agent and BNP
Paribas, as administrative agent under the Second-Lien Term Loan Agreement.

 

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

 

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

 

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

 

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

 

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

 

“Inventory”
means, with respect to any Person as of any date of determination, all goods,
merchandise and other personal property which are then owned by such Person
with a view towards future sale, lease or use in commerce, including raw
materials and work in process.

 

21

 

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

 

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

 

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

 

“IPO”
means the initial public issuance of Capital Stock by Holdings the gross
proceeds of which are at least $50,000,000.

 

“IPO
Fees” means the costs, fees and expenses payable in
connection with the IPO (including payments to terminate the Management
Agreement and payment of an advisory fee to Oaktree or its Affiliate) in an
aggregate amount not to exceed $5,500,000.

 

“IPO
Fees Payment” means a Restricted Junior Payment made
by Company to Holdings in an amount not to exceed $5,500,000 for the purpose of
permitting Holdings to pay the IPO Fees.

 

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

 

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

 

“Key
Officer” means the president, chief executive officer,
chief financial officer, secretary, general counsel, senior vice president of
finance, senior vice president of global operations, senior vice president of
retail and licensing, senior vice president of 

 

22

 

merchandising and design, or other individual
appointed by the Governing Body or the Organizational Documents of a
corporation, partnership, trust or limited liability company to serve in a
similar capacity as the foregoing.

 

“Knowledge
of Company” means the knowledge of Thomas Ward, Dorvin
Lively, Cindy Davis, Steven Masket, Steve Nelson and each of their successors
in their capacities as President and Chief Executive Officer, Executive Vice
President and Chief Financial Officer, Senior Vice President of Retail &
Licensing, Executive Vice President and Chief Legal Officer and Senior Vice
President of Finance, respectively.  For
purposes of this definition “knowledge” with respect to any Person shall
include actual knowledge as well as knowledge that should have been obtained by
such Person acting reasonably in their capacity as an officer of Company in the
ordinary course of business.

 

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

 

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

 

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

 

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

 

“LIBOR”
means, for any Interest Rate Determination Date with respect to an Interest
Period for a LIBOR Loan, the London interbank offered rate, rounded upward, if
necessary, to the nearest 1/100 of 1%, equal to the offered rate for deposits
in Dollars for a period equal to such Interest Period, commencing on the first
day of such Interest Period, which appears on Telerate Page 3750 (or such other
page as may replace Telerate Page 3750 on that service or any successor service
for the purpose of displaying London interbank offered rates of major banks) as
of 11:00 A.M. (London time), on the day that is two Business Days prior to the
first day of such Interest Period.  If
the LIBOR rate for an Interest Period cannot be determined pursuant to the
preceding sentence, then the LIBOR rate for such Interest Period shall be
determined on the basis of the rates at which deposits in Dollars are offered
to BNP Paribas at approximately 11:00 A.M. (London time) on the day that is two
Business Days prior to the first day of such Interest Period, and in an amount
that is approximately equal to the principal amount 

 

23

 

of the LIBOR Loans to which such Interest
Period is applicable.  Administrative
Agent will request the principal London office of BNP Paribas to provide a
quotation of its rate.

 

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

 

“LIBOR
Margin” means the margin over Adjusted LIBOR used in
determining the rate of interest of LIBOR Loans pursuant to subsection 2.2A.

 

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

 

“Loan”
or “Loans” means one or more of
the Loans made by Lenders to Company pursuant to subsection 2.1A.

 

“Loan
Documents” means this Agreement, the Notes, the
Letters of Credit (and any applications for, or reimbursement agreements or
other documents or certificates executed by Company in favor of an Issuing
Lender relating to, the Letters of Credit), the Guaranty, the Collateral
Documents, the Acknowledgement by Guarantors, and all amendments, waivers and
consents relating thereto.

 

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

 

“Maidenform”
means Maidenform, Inc., a New York corporation; provided that, after the
consummation of the Merger, Maidenform is referred to herein as Company.

 

“Management
Agreement” means that certain Advisory Agreement,
dated as of May 6, 2004, among Company, Holdings, ACOF Operating Manager, L.P.
and Ares under which Ares or any of its Affiliates provides management services
to Company.

 

“Management
Bonuses” means special bonuses paid by Company to
officers of Company prior to the IPO and between June 15, 2005 and December 31,
2005.

 

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

 

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

 

24

 

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

 

“Material
Leasehold Property” means a domestic Leasehold
Property reasonably determined by Administrative Agent to be of material value
as Collateral or of material importance to the operations of Company and its
Subsidiaries taken as a whole; provided that in no case shall any
Leasehold Property used solely for the purposes of retail outlet and/or office
facilities be considered a “Material Leasehold Property”.

 

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

 

“Merger”
means the merger of Merger Sub with and into Maidenform in accordance with the
terms of the Acquisition Agreement and the Certificate of Merger, with
Maidenform being the surviving corporation.

 

“Merger
Sub” means MF Merger Corporation, a New York
corporation.

 

“Merida
Facility” means the Facility located at Parque
Industrial de Yucatan, Carretera Merida a Progresso km 10.2, State of Yucatan,
Mexico.

 

“Mexican
Facilities” means the Merida Facility and the Facility
located at Sucursal Valladolid, Km. 159 Antigua Carr., Parque Industrial Vdld,
Lote #1, Valladolid, Yucatan 97780, Mexico.

 

“Moody’s”
means Moody’s Investors Service, Inc.

 

“Mortgage”
means (i) a security instrument (whether designated as a deed of trust or a
mortgage or by any similar title) executed and delivered by any Loan Party, in
such form as may be reasonably approved by Administrative Agent, or (ii) at
Administrative Agent’s option, in the case of an Additional Mortgaged Property,
an amendment to an existing Mortgage, in form reasonably satisfactory to
Administrative Agent, adding such Additional Mortgaged Property to the Real
Property Assets encumbered by such existing Mortgage.  “Mortgages”
means all such instruments, including the Closing Date Mortgages and any
Additional Mortgages, collectively.

 

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

 

“Net
Asset Sale Proceeds”, with respect to any Asset Sale,
means Cash payments (including any Cash received by way of deferred payment
pursuant to, or by monetization of, a note receivable or otherwise, but only as
and when so received) received from such Asset Sale, net of any bona fide
direct costs incurred in connection with such Asset Sale, including, without
limitation, (i) income taxes reasonably estimated to be payable as a
result of any gain recognized in connection with such Asset Sale,
(ii) payment of the outstanding principal 

 

25

 

amount of, premium or penalty, if any, and
interest on any Indebtedness (other than the Loans) that is (a) secured by a
Lien on the stock or assets in question and that is required to be repaid under
the terms thereof as a result of such Asset Sale and (b) actually paid at the
time of receipt of such cash payment to a Person that is not an Affiliate of
any Loan Party, (iii) brokerage fees and legal expenses incurred in connection
with such Asset Sale, (iv) any reserves required to be established by the
seller in accordance with GAAP against liabilities associated with such Asset
Sale, including, without limitation, severance, pension and other
post-employment benefit liabilities, liabilities related to environmental
matters and liabilities under indemnification obligations associated with such
Asset Sale (provided that promptly following the date that any such reserves
are no longer required in accordance with GAAP, an amount equal to the unused
portion of such reserves shall be applied as Net Asset Sale Proceeds in
accordance with subsection 2.4B(iii)(a)) and (v) to the extent unpaid prior to
the date of such Asset Sale, carrying costs during any period that the
underlying asset is both held for sale and not being used in the business of
Company and its Subsidiaries in an amount not to exceed 20% of the total Cash
payments received from such Asset Sale; provided, however, that Net
Asset Sale Proceeds shall not include any Cash payments received from any Asset
Sale by a Foreign Subsidiary unless such proceeds may be repatriated (by reason
of a repayment of an intercompany note or otherwise) to the United States
without (in the reasonable judgment of Company) resulting in a material Tax
liability to Company.

 

“Net
Insurance/Condemnation Proceeds” means any Cash
payments or proceeds received by (i) Company or any of its Domestic
Subsidiaries (a) under any business interruption or casualty insurance policy
in respect of a covered loss thereunder or (b) as a result of the taking of any
assets of Company or any of its Subsidiaries by any Person pursuant to the
power of eminent domain, condemnation or otherwise, or pursuant to a sale of
any such assets to a purchaser with such power under threat of such a taking,
in each case net of any actual and reasonable documented or estimated costs
(including provisions for income taxes) incurred or to be incurred by Company
or any of its Subsidiaries in connection with the adjustment or settlement of
any claims of Company or such Subsidiary in respect thereof or (ii) any Person
under the Representations and Warranties Insurance Policy.

 

“Net
Securities Proceeds” means the cash proceeds (net of
underwriting discounts and commissions and other reasonable costs and expenses
associated therewith, including reasonable legal fees and expenses) from (i)
the issuance of Capital Stock of or incurrence of Indebtedness by Holdings,
Company or any of its Subsidiaries and (ii) capital contributions made by a
holder of Capital Stock of Holdings.

 

“Non-Consenting
Lender” has the meaning assigned to that term in
subsection 2.9.

 

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

 

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

 

26

 

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

 

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

 

“Oaktree”
means Oaktree Capital Management LLC and the several funds and accounts under
its management.

 

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

 

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

 

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

 

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

 

“Original
Credit Agreement” has the meaning assigned to that
term in the recitals to this Agreement.

 

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

 

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

 

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

 

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

 

27

 

“Permitted
Acquisition” means the acquisition of all or any
portion of the business and assets, or Capital Stock, of any Person which acquisition
is permitted pursuant to clause (v) of subsection 7.3.

 

“Permitted
Dividend Payment” means a Restricted Junior Payment
made by Company to Holdings for the purpose of permitting Holdings to pay
dividends during the Fiscal Year ending December 31, 2005 in respect of the
outstanding Holdings Perpetual Preferred Stock.

 

“Permitted
Encumbrances” means the following types of Liens
(excluding any such Lien imposed pursuant to Section 401(a)(29) or 412(n) of
the Internal Revenue Code or by ERISA, any such Lien imposed by a Government
Authority in connection with any Foreign Plan, any such Lien relating to or
imposed in connection with any Environmental Claim, and any such Lien expressly
prohibited by any applicable terms of any of the Collateral Documents, provided
that any such Lien shall not be excluded to that extent such Lien is being
contested in good faith by appropriate proceedings and such contest proceedings
conclusively operate to stay the sale of any portion of the Collateral on
account of such Lien):

 

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

 

(ii)                                  statutory Liens
of landlords, Liens of collecting banks under the UCC on items in the course of
collection, statutory Liens and rights of set-off of banks as to deposit
accounts, provided  that, in each case, (a) such deposit account
is not a dedicated cash collateral account and is not subject to restrictions
against access by Company or any of its Subsidiaries owning the affected
deposit account in excess of those set forth by regulations promulgated by the
Federal Reserve Board or any foreign regulatory agency performing an equivalent
function, and (b) such deposit account is not intended by Company or any of its
Subsidiaries to provide collateral (other than such as is ancillary to the
establishment of such deposit account) to the bank, statutory Liens of
carriers, warehousemen, mechanics, repairmen, workmen and materialmen, and
other Liens imposed by law, in each case incurred in the ordinary course of
business (1) for amounts not yet overdue or (2) for amounts that are overdue
and that (in the case of any such amounts overdue for a period in excess of 5
days) are being contested in good faith by appropriate proceedings, so long as
(y) such reserves or other appropriate provisions, if any, as shall be required
by GAAP shall have been made for any such contested amounts, and (z) in the
case of a Lien with respect to any portion of the Collateral, such contest proceedings
conclusively operate to stay the sale of any portion of the Collateral on
account of such Lien;

 

(iii)                               deposits made
in the ordinary course of business in connection with workers’ compensation,
unemployment insurance and other types of social security, or to secure the
performance of statutory obligations, surety and customs bonds, bids, leases,
government contracts, trade contracts, and other similar obligations (exclusive
of obligations for the payment of borrowed money), so long as no foreclosure,
sale or 

 

28

 

similar proceedings have been commenced with respect to any portion of
the Collateral on account thereof;

 

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

 

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

 

(vi)                              easements,
rights-of-way, restrictions, covenants, licenses, encroachments, protrusions
and other minor defects or irregularities in title and other matters of record,
in each case which do not and will not interfere in any material respect with
the ordinary conduct of the business of Company or any of its Subsidiaries or
result in a material diminution in the value of any Collateral as security for
the Obligations and other exceptions to title approved by Administrative Agent
and set forth in the title insurance policies insuring the Mortgages;

 

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

 

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

 

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

 

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

 

(xi)                                Liens granted
pursuant to the Collateral Documents;

 

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

 

(xiii)                          Liens on
property not securing Indebtedness for borrowed money that do not materially
interfere with the use or disposition of such property; and

 

(xiv)                         Liens arising
from title retention by third parties in connection with the acquisition of
goods by Company or any of its Subsidiaries in the ordinary course of 

 

29

 

business, provided that no default in the obligations relating to such
acquisition has occurred and is continuing.

 

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

 

“Pledged
Collateral” means, collectively, the “Pledged
Collateral” as defined in the Security Agreement and any Foreign Pledge Agreement.

 

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

 

“Pricing
Certificate” means an Officer’s Certificate of Company
certifying the Consolidated Leverage Ratio as at the last day of any Fiscal
Quarter and setting forth the calculation of such Consolidated Leverage Ratio
in reasonable detail.

 

“Prime
Rate” means the rate that BNP Paribas in New York
announces from time to time as its prime lending rate, effective as of the date
announced as the effective date of any change in such prime rate. Without
notice to Company or any other Person, the Prime Rate shall change
automatically from time to time as and in the amount by which such prime rate
shall fluctuate.  The Prime Rate is a
reference rate and does not necessarily represent the lowest or best rate
actually charged to any customer.  BNP
Paribas or any other Lender may make commercial loans or other loans at rates
of interest at, above or below the Prime Rate.

 

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

 

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

 

30

 

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

 

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

 

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

 

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

 

“Reimbursement
Date” has the meaning assigned to that term in subsection
3.3B.

 

“Related
Agreements” means, collectively, the Acquisition
Agreement, the Certificate of Merger, the Representations and Warranties
Insurance Policy, the Rollover Exchange Agreements and the Management
Agreement.

 

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

 

“Representations
and Warranties Insurance Policy” means that certain
Buyer-Side Representations and Warranties Insurance Policy effective as of May
11, 2004 and issued by American International Specialty Lines Insurance Company
with policy number 193404 relating to the Acquisition Agreement.

 

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

 

“Requisite
Class Lenders” means, at any time of determination (i)
for the Class of Lenders having Revolving Loan Exposure, Lenders having or
holding more than 50% of the aggregate Revolving Loan Exposure of all Lenders
and (ii) for the Class of Lenders having Term Loan Exposure, Lenders having or
holding more than 50% of the aggregate Term Loan Exposure of all Lenders.

 

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

 

“Restatement
Date” means the date on which all conditions set forth
in subsections 4.1 and 4.2 are satisfied or waived.

 

“Restricted
Junior Payment” means (i) any dividend or other
distribution, direct or indirect, on account of any shares of any class of
stock of Company now or hereafter 

 

31

 

outstanding, except a dividend payable solely
in shares of that class of stock to the holders of that class, (ii) any
redemption, retirement, sinking fund or similar payment, purchase or other
acquisition for value, direct or indirect, of any shares of any class of stock
of Company now or hereafter outstanding, (iii) any payment made to retire,
or to obtain the surrender of, any outstanding warrants, options or other
rights to acquire shares of any class of stock of Company now or hereafter
outstanding and (iv) any payment or prepayment of principal of, premium, if
any, or interest on, or redemption, purchase, retirement, defeasance (including
in substance or legal defeasance), sinking fund or similar payment with respect
to, any Subordinated Indebtedness; provided that the term “Restricted
Junior Payment” shall not include any payments made by Company to Holdings in
connection with the satisfaction of Company’s obligations under the Acquisition
Agreement to the extent permitted pursuant to subsection 7.9.

 

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

 

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

 

“Revolving
Loan Commitment Amount” means, at any date, the
aggregate amount of the Revolving Loan Commitments of all Revolving Lenders.

 

“Revolving
Loan Commitment Termination Date” means May 11, 2010.

 

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

 

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

 

“Revolving
Notes” means any promissory notes of Company issued
pursuant to subsection 2.1E to evidence the Revolving Loans of any Revolving
Lenders, substantially in the form of Exhibit V annexed hereto.

 

32

 

“Rollover
Exchange Agreements” means any Exchange and Support
Agreements dated as of March 16, 2004 between Holdings and a Rollover Investor exchanging Rollover Shares for
Holdings Common Stock and Holdings Perpetual Preferred Stock, in each case in
the form delivered to Administrative Agent and Lenders prior to their execution
of this Agreement.

 

“Rollover
Investors” means Oaktree, its Affiliates and those
investors who, immediately prior to the Closing Date, own equity interests in
Maidenform and who will be investors in Holdings after consummation of the
Acquisition.

 

“Rollover
Options” has the meaning assigned to the term “Rollover
In-the-Money Company Stock Options” in the Acquisition Agreement.

 

“Rollover
Shares” means shares of Capital Stock of Maidenform
issued to the Rollover Investors in connection with the Acquisition.

 

“S&P”
means Standard & Poor’s, a division of The McGraw-Hill Companies, Inc.

 

“Second-Lien
Term Loan” means the second-lien senior secured term
loan facility provided to Company under the Second-Lien Term Loan Documents.

 

“Second-Lien
Term Loan Agreement” means the Term Loan Credit
Agreement, dated as of May 11, 2004, by and among Holdings, Merger Sub, the
financial institutions party thereto, and BNP Paribas, as administrative agent
for the lenders thereunder.

 

“Second-Lien
Term Loan Documents” means, collectively, (i) that
certain Second-Lien Term Loan Agreement and (ii) all principal documents
executed by Company and/or any of its Affiliates in connection therewith, in
each case in the form delivered to Administrative Agent and Lenders prior to
the Closing Date.

 

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

 

“Securities
Account” means an account to which a financial asset
is or may be credited in accordance with an agreement under which the Person
maintaining the account undertakes to treat the Person for whom the account is
maintained as entitled to exercise the rights that comprise the financial
asset.

 

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

 

33

 

“Security
Agreement” means the Security Agreement executed and
delivered by Holdings, Company and Subsidiary Guarantors on the Closing Date,
substantially in the form of Exhibit XII annexed hereto.

 

“Sole
Lead Arranger” means BNP Paribas Securities Corp.

 

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

 

“Standby
Letter of Credit” means any letter of credit or
similar instrument other than a Commercial Letter of Credit.

 

“Subject
Lender” has the meaning assigned to that term in
subsection 2.9.

 

“Subject
Transaction” has the meaning assigned to that term in
subsection 7.6C.

 

“Subordinated
Indebtedness” means any Indebtedness of Company
incurred from time to time and subordinated in right of payment to the
Obligations, it being understood that no Indebtedness is Subordinated
Indebtedness solely because it is (i) unsecured or (ii) secured by a Lien on
the Collateral of a lower priority than the Lien on the Collateral securing the
Obligations.

 

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

 

“Subsidiary
Guarantor” means any Subsidiary of Company that has
executed and delivered a counterpart of the Guaranty on the Closing Date or
that executes and delivers a counterpart thereof from time to time thereafter
pursuant to subsection 6.8.

 

34

 

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

 

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

 

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

 

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

 

“Swing
Line Note” means any promissory note of Company issued
pursuant to subsection 2.1E to evidence the Swing Line Loans of Swing Line
Lender, substantially in the form of Exhibit VI annexed hereto.

 

“Syndication
Agent” means GMAC Commercial Finance LLC.

 

“Synthetic
Lease Obligation” means the monetary obligation of a
Person under (i) a so-called synthetic, off-balance sheet or tax retention
lease, or (ii) an agreement for the use or possession of property creating
obligations that do not appear on the balance sheet of such Person but which,
upon the insolvency or bankruptcy of such Person, would be characterized as the
indebtedness of such Person (without regard to accounting treatment).

 

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

 

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

 

“Term
Loan Exposure”, with respect to any Lender, means, as
of any date of determination (i) prior to the funding of the Term Loans,
the amount of that Lender’s Term Loan 

 

35

 

Commitment, and (ii), after the funding
of the Term Loans, the outstanding principal amount of the Term Loan of that
Lender.

 

“Term
Loan Maturity Date” means May 11, 2010.

 

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

 

“Term
Notes” means any promissory notes of Company issued
pursuant to subsection 2.1E to evidence the Term Loans of any Lenders, substantially
in the form of Exhibit IV annexed hereto.

 

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

 

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

 

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

 

“Unasserted
Obligations” means, at any time, Obligations for
taxes, costs, indemnifications, reimbursements, damages and other liabilities
(except for (i) the principal of and interest on, and fees relating to, any
Indebtedness and (ii) contingent reimbursement obligations in respect of
amounts that may be drawn under Letters of Credit) in respect of which no claim
or demand for payment has been made (or, in the case of Obligations for
indemnification, no notice for indemnification has been issued by the
Indemnitee) at such time.

 

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

 

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

 

36

 

Requisite Lenders), provided that, until so
amended, such ratio or requirement shall continue to be computed in accordance
with GAAP prior to such change therein and Company shall provide to
Administrative Agent and Lenders reconciliation statements provided for in
subsection 6.1(v).

 

1.3                               Other
Definitional Provisions and Rules of Construction.

 

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

 

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

 

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

 

D.                                    Subject to
subsection 7.12, unless otherwise expressly provided herein, references to
Organizational Documents, agreements (including the Loan Documents) and other
contractual instruments shall be deemed to include all subsequent amendments,
restatements, extensions, supplements and other modifications thereto.

 

1.4                               Amendment
and Restatement.

 

On the
Restatement Date, the Original Credit Agreement shall be amended and restated
in its entirety as contemplated hereunder. 
The parties acknowledge and agree that this Agreement and the other Loan
Documents do not constitute a novation, payment and reborrowing or termination
of the obligations under the Original Credit Agreement and that all such
obligations are in all respects continued and outstanding as obligations under
this Agreement and the Notes except to the extent such obligations are modified
from and after the Restatement Date as provided in this Agreement and the other
Loan Documents (it being understood that this Agreement contains all of the
terms and conditions of the Original Credit Agreement as so modified).

 

Section 2.                                          AMOUNTS
AND TERMS OF COMMITMENTS AND LOANS

 

2.1                               Commitments;
Making of Loans; the Register; Optional Notes.

 

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

 

37

 

Swing Line Lender hereby agrees to make the Swing
Line Loans as described in subsection 2.1A(iii).

 

(i)                                     Term Loans.  Immediately prior to the Restatement Date,
Term Loans in an aggregate principal amount of $88,962,871.42 were
outstanding.  Each Lender that has a Term
Loan Commitment severally agrees to lend to Company on the Restatement Date
Term Loans in an aggregate principal amount such that the sum of its Term Loans
immediately prior to the Restatement Date, if any, plus its Term Loans made or
purchased and assumed on the Restatement Date shall not exceed its Pro Rata
Share of the aggregate amount of the Term Loan Commitments to be used for the
purposes identified in subsection 2.5A. 
The amount of each Lender’s Term Loan Commitment as of the Restatement
Date is set forth on Schedule 2.1 annexed hereto and the aggregate
amount of the Term Loan Commitments is $150,000,000; provided that the
amount of the Term Loan Commitment of each Lender shall be adjusted to give effect
to any assignment of such Term Loan Commitment pursuant to subsection
10.1B.  In addition to the borrowing made
on the Closing Date, Company may make only one borrowing under the Term Loan
Commitments.  Amounts borrowed under this
subsection 2.1A(i) and subsequently repaid or prepaid may not be
reborrowed.

 

(ii)                                  Revolving Loans.  Each Revolving Lender severally agrees,
subject to the limitations set forth below with respect to the maximum amount
of Revolving Loans permitted to be outstanding from time to time, to lend to
Company from time to time during the period from the Restatement Date to but
excluding the Revolving Loan Commitment Termination Date an aggregate amount
not exceeding its Pro Rata Share of the aggregate amount of the Revolving Loan
Commitments to be used for the purposes identified in subsection 2.5B.  The amount of each Revolving Lender’s
Revolving Loan Commitment as of the Restatement Date is set forth on Schedule 2.1
annexed hereto and the Revolving Loan Commitment Amount as of the Restatement
Date is $50,000,000; provided that the amount of the Revolving Loan
Commitment of each Revolving Lender shall be adjusted to give effect to any
assignment of such Revolving Loan Commitment pursuant to subsection 10.1B and
shall be reduced from time to time by the amount of any reductions thereto made
pursuant to subsection 2.4.  Each
Revolving Lender’s Revolving Loan Commitment shall expire on the Revolving Loan
Commitment Termination Date and all Revolving Loans and all other amounts owed
hereunder with respect to the Revolving Loans and the Revolving Loan
Commitments shall be paid in full no later than that date.  Amounts borrowed under this subsection
2.1A(ii) may be repaid and reborrowed to but excluding the Revolving Loan
Commitment Termination Date.

 

Anything
contained in this Agreement to the contrary notwithstanding, the Revolving
Loans and the Revolving Loan Commitments shall be subject to the following
limitations in the amounts and during the periods indicated:

 

(a)                                  in no event
shall the Total Utilization of Revolving Loan Commitments at any time exceed
the lesser of the Revolving Loan Commitment Amount then in effect and the
Borrowing Base then in effect; and

 

38

 

(b)                                 for a period of
30 consecutive days during each calendar year prior to the calendar year in
which the IPO is consummated, the sum of the aggregate outstanding principal
amount of all Revolving Loans plus the aggregate outstanding principal
amount of all Swing Line Loans shall not exceed $15,000,000; provided
that there shall be no less than 90 days between any two such periods; provided,
further, that, except to the extent that the aggregate outstanding
amount of Revolving Loans has been reduced to zero, the aggregate outstanding
amount of Revolving Loans for purposes of this clause (b) shall include
the aggregate amount of any Net Asset Sale Proceeds and/or Net
Insurance/Condemnation Proceeds intended to be reinvested that have been
temporarily applied to repay Revolving Loans in accordance with subsection 2.4B(iii)(a) or
6.4C, respectively.

 

(iii)                               Swing Line
Loans.

 

(a)                                  General
Provisions.  Swing Line
Lender hereby agrees, subject to the limitations set forth in the last
paragraph of subsection 2.1A(ii) and set forth below with respect to
the maximum amount of Swing Line Loans permitted to be outstanding from time to
time, to make a portion of the Revolving Loan Commitments available to Company
from time to time during the period from the Restatement Date to but excluding
the Revolving Loan Commitment Termination Date by making Swing Line Loans to
Company in an aggregate amount not exceeding the amount of the Swing Line Loan
Commitment to be used for the purposes identified in subsection 2.5B,
notwithstanding the fact that such Swing Line Loans, when aggregated with Swing
Line Lender’s outstanding Revolving Loans and Swing Line Lender’s Pro Rata
Share of the Letter of Credit Usage then in effect, may exceed Swing Line
Lender’s Revolving Loan Commitment.  The
amount of the Swing Line Loan Commitment as of the Restatement Date is
$5,000,000; provided that any reduction of the Revolving Loan Commitment
Amount made pursuant to subsection 2.4 that reduces the Revolving Loan
Commitment Amount to an amount less than the then current amount of the Swing
Line Loan Commitment shall result in an automatic corresponding reduction of
the amount of the Swing Line Loan Commitment to the amount of the Revolving
Loan Commitment Amount, as so reduced, without any further action on the part
of Company, Administrative Agent or Swing Line Lender.  The Swing Line Loan Commitment shall expire
on the Revolving Loan Commitment Termination Date and all Swing Line Loans and
all other amounts owed hereunder with respect to the Swing Line Loans shall be
paid in full no later than that date. 
Amounts borrowed under this subsection 2.1A(iii) may be repaid
and reborrowed to but excluding the Revolving Loan Commitment Termination Date.

 

(b)                                 Swing Line Loan
Prepayment with Proceeds of Revolving Loans.  With respect to any Swing Line Loans that
have not been voluntarily prepaid by Company pursuant to subsection 2.4B(i),
Swing Line Lender may, at any time in its sole and absolute discretion, deliver
to Administrative Agent (with a copy to Company), no later than 10:00 A.M.
(New York City time) on the first Business 

 

39

 

Day in advance of the proposed Funding Date,
a notice requesting Revolving Lenders to make Revolving Loans that are Base
Rate Loans on such Funding Date in an amount equal to the amount of such Swing
Line Loans (the “Refunded Swing Line Loans”)
outstanding on the date such notice is given. 
Company hereby authorizes the giving of any such notice and the making
of any such Revolving Loans.  Anything
contained in this Agreement to the contrary notwithstanding, (1) the
proceeds of such Revolving Loans made by Revolving Lenders other than Swing
Line Lender shall be immediately delivered by Administrative Agent to Swing
Line Lender (and not to Company) and applied to repay a corresponding portion
of the Refunded Swing Line Loans and (2) on the day such Revolving Loans
are made, Swing Line Lender’s Pro Rata Share of the Refunded Swing Line Loans
shall be deemed to be paid with the proceeds of a Revolving Loan made by Swing
Line Lender, and such portion of the Swing Line Loans deemed to be so paid
shall no longer be outstanding as Swing Line Loans and shall no longer be due
under the Swing Line Note, if any, of Swing Line Lender but shall instead
constitute part of Swing Line Lender’s outstanding Revolving Loans and shall be
due under the Revolving Note, if any, of Swing Line Lender.  Company hereby authorizes Administrative
Agent and Swing Line Lender to charge Company’s accounts with Administrative
Agent and Swing Line Lender (up to the amount available in each such account)
in order to immediately pay Swing Line Lender the amount of the Refunded Swing
Line Loans to the extent the proceeds of such Revolving Loans made by Revolving
Lenders, including the Revolving Loan deemed to be made by Swing Line Lender,
are not sufficient to repay in full the Refunded Swing Line Loans.  If any portion of any such amount paid (or
deemed to be paid) to Swing Line Lender should be recovered by or on behalf of
Company from Swing Line Lender in any bankruptcy proceeding, in any assignment
for the benefit of creditors or otherwise, the loss of the amount so recovered
shall be ratably shared among all Lenders in the manner contemplated by subsection 10.5.

 

(c)                                  Swing Line Loan
Assignments.  On the
Funding Date of each Swing Line Loan, each Revolving Lender shall be deemed to,
and hereby agrees to, purchase an assignment of such Swing Line Loan in an
amount equal to its Pro Rata Share.  If
for any reason (1) Revolving Loans are not made upon the request of Swing
Line Lender as provided in the immediately preceding paragraph in an amount
sufficient to repay any amounts owed to Swing Line Lender in respect of such
Swing Line Loan or (2) the Revolving Loan Commitments are terminated at a
time when such Swing Line Loan is outstanding, upon notice from Swing Line
Lender as provided below, each Revolving Lender shall fund the purchase of such
assignment in an amount equal to its Pro Rata Share (calculated, in the case of
the foregoing clause (2), immediately prior to such termination of the
Revolving Loan Commitments) of the unpaid amount of such Swing Line Loan
together with accrued interest thereon. 
Upon one Business Day’s notice from Swing Line Lender, each Revolving Lender
shall deliver to Swing Line Lender such amount in same day funds at the Funding
and Payment Office.  In order to further 

 

40

 

evidence such assignment (and without
prejudice to the effectiveness of the assignment provisions set forth above),
each Revolving Lender agrees to enter into an Assignment Agreement at the
request of Swing Line Lender in form and substance reasonably satisfactory to
Swing Line Lender.  In the event any
Revolving Lender fails to make available to Swing Line Lender any amount as
provided in this paragraph, Swing Line Lender shall be entitled to recover such
amount on demand from such Revolving Lender together with interest thereon at
the rate customarily used by Swing Line Lender for the correction of errors
among banks for three Business Days and thereafter at the Base Rate.  In the event Swing Line Lender receives a
payment of any amount with respect to which other Revolving Lenders have funded
the purchase of assignments as provided in this paragraph, Swing Line Lender
shall promptly distribute to each such other Revolving Lender its Pro Rata
Share of such payment.

 

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

 

B.                                    Borrowing Mechanics.  Loans made on any Funding Date (other than
Swing Line Loans, Revolving Loans made pursuant to a request by Swing Line
Lender pursuant to subsection 2.1A(iii) or Revolving Loans made
pursuant to subsection 3.3B) shall be in an aggregate minimum amount of
$1,000,000 and multiples of $250,000 in excess of that amount; provided
that Loans made as LIBOR Loans with a particular Interest Period shall be in an
aggregate minimum amount of $2,500,000 and multiples of $250,000 in excess of
that amount.  Swing Line Loans made on
any Funding Date shall be in an aggregate minimum amount of $100,000 and
multiples of $100,000 in excess of that amount. 
Whenever Company desires that 

 

41

 

Lenders make Term Loans or Revolving Loans it shall deliver to
Administrative Agent a duly executed Notice of Borrowing no later than 11:00 A.M.
(New York City time) at least three Business Days in advance of the proposed
Funding Date (in the case of a LIBOR Loan) or at least one Business Day in
advance of the proposed Funding Date (in the case of a Base Rate Loan).  Whenever Company desires that Swing Line
Lender make a Swing Line Loan, it shall deliver to Administrative Agent a duly
executed Notice of Borrowing no later than 11:00 A.M. (New York City time)
on the proposed Funding Date.  Term Loans
and Revolving Loans may be continued as or converted into Base Rate Loans and
LIBOR Loans in the manner provided in subsection 2.2D.  In lieu of delivering a Notice of Borrowing,
Company may give Administrative Agent telephonic notice by the required time of
any proposed borrowing under this subsection 2.1B; provided that
such notice shall be promptly confirmed in writing by delivery of a duly
executed Notice of Borrowing to Administrative Agent on or before the
applicable Funding Date.

 

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

 

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

 

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

 

C.                                    Disbursement of Funds.  All Term Loans and Revolving Loans shall be
made by Lenders simultaneously and proportionately to their respective Pro Rata
Shares, it being understood that neither Administrative Agent nor any Lender
shall be responsible for any default by any other Lender in that other Lender’s
obligation to make a Loan requested hereunder nor shall the amount of the
Commitment of any Lender to make the particular type of Loan requested be
increased or decreased as a result of a default by any other Lender in that
other Lender’s obligation to make a Loan requested hereunder.  Promptly after receipt by Administrative
Agent of a Notice of Borrowing pursuant to subsection 2.1B (or telephonic
notice in lieu thereof), Administrative Agent shall notify each Lender for that
type of Loan or Swing Line Lender, as 

 

42

 

the case may be, of the proposed borrowing.  Each such Lender (other than Swing Line
Lender) shall make the amount of its Loan available to Administrative Agent not
later than 1:00 P.M. (New York City time) on the applicable Funding Date,
and Swing Line Lender shall make the amount of its Swing Line Loan available to
Administrative Agent not later than 1:00 P.M. (New York City time) on the
applicable Funding Date, in each case in same day funds in Dollars, at the
Funding and Payment Office.  Except as
provided in subsection 2.1A(iii) and subsection 3.3B with
respect to Revolving Loans used to repay Refunded Swing Line Loans or to
reimburse any Issuing Lender for the amount of a drawing under a Letter of
Credit issued by it, upon satisfaction or waiver of the conditions precedent
specified in subsections 4.1 (in the case of Loans made on the Restatement
Date) and 4.2 (in the case of all Loans), Administrative Agent shall make the
proceeds of such Loans available to Company on the applicable Funding Date by
causing an amount of same day funds in Dollars equal to the proceeds of all
such Loans received by Administrative Agent from Lenders to be credited to the
account of Company at the Funding and Payment Office.

 

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

 

D.                                    The Register.

 

Administrative Agent, acting for these purposes solely as an agent of
Company (it being acknowledged that Administrative Agent, in such capacity, and
its officers, directors, employees, agent and affiliates shall constitute
Indemnitees under subsection 10.3), shall maintain at its address referred
to in subsection 10.8 a register for the recordation of, and shall record,
the names and addresses of Lenders and the respective amounts of the Term Loan
Commitment, Revolving Loan Commitment, Swing Line Loan Commitment, Term Loan,
Revolving Loans and Swing Line Loans of each Lender from time to time (the “Register”).  Company, Administrative Agent shall deem and
treat the Persons listed as Lenders in the Register as the holders and owners
of the corresponding Commitments and Loans listed therein 

 

43

 

for all purposes hereof; all amounts owed with respect to any
Commitment or Loan shall be owed to the Lender listed in the Register as the
owner thereof; and any request, authority or consent of any Person who, at the
time of making such request or giving such authority or consent, is listed in
the Register as a Lender shall be conclusive and binding on any subsequent
holder, assignee or transferee of the corresponding Commitments or Loans.  Each Lender shall record on its internal
records the amount of its Loans and Commitments and each payment in respect
hereof, and any such recordation shall be conclusive and binding on Company,
absent manifest error, subject to the entries in the Register, which shall,
absent manifest error, govern in the event of any inconsistency with any Lender’s
records.  Failure to make any recordation
in the Register or in any Lender’s records, or any error in such recordation,
shall not affect any Loans or Commitments or any Obligations in respect of any
Loans.

 

E.                                      Optional
Notes.  If so requested by any Lender
by written notice to Company (with a copy to Administrative Agent) at least two
Business Days prior to the Restatement Date or at any time thereafter, Company
shall execute and deliver to such Lender (and/or, if applicable and if so
specified in such notice, to any Person who is an assignee of such Lender
pursuant to subsection 10.1) on the Restatement Date (or, if such notice
is delivered after the Restatement Date, promptly after Company’s receipt of
such notice) a promissory note or promissory notes to evidence such Lender’s
Term Loan, Revolving Loans or Swing Line Loans, substantially in the form of Exhibit IV,
Exhibit V or Exhibit VI annexed hereto, respectively,
with appropriate insertions.

 

2.2                               Interest
on the Loans.

 

A.                                    Rate of Interest. 
Subject to the provisions of subsections 2.6 and 2.7, each Term Loan and
each Revolving Loan shall bear interest on the unpaid principal amount thereof
from the date made through maturity (whether by acceleration or otherwise) at a
rate determined by reference to the Base Rate or Adjusted LIBOR.  Subject to the provisions of subsection 2.7,
each Swing Line Loan shall bear interest on the unpaid principal amount thereof
from the date made through maturity (whether by acceleration or otherwise) at a
rate determined by reference to the Base Rate. 
The applicable basis for determining the rate of interest with respect
to any Term Loan or any Revolving Loan shall be selected by Company initially
at the time a Notice of Borrowing is given with respect to such Loan pursuant
to subsection 2.1B (subject to the last sentence of subsection 2.1B),
and the basis for determining the interest rate with respect to any Term Loan
or any Revolving Loan may be changed from time to time pursuant to subsection 2.2D
(subject to the last sentence of subsection 2.1B).  If on any day a Term Loan or Revolving Loan
is outstanding with respect to which notice has not been delivered to
Administrative Agent in accordance with the terms of this Agreement specifying
the applicable basis for determining the rate of interest, then for that day
that Loan shall bear interest determined by reference to the Base Rate.

 

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

 

44

 

(a)                                  if a Base Rate
Loan, then at the sum of the Base Rate plus the Base Rate Margin set
forth in the table below opposite the applicable Consolidated Leverage Ratio
for the four Fiscal Quarter period for which the applicable Pricing Certificate
has been delivered pursuant to subsection 6.1(iv); or

 

(b)                                 if a LIBOR
Loan, then at the sum of LIBOR plus the LIBOR Margin set forth in the
table below opposite the applicable Consolidated Leverage Ratio for the four
Fiscal Quarter period for which the applicable Pricing Certificate has been
delivered pursuant to subsection 6.1(iv):

 

	
   

  	
   

  	
  Consolidated

  Leverage Ratio

  	
   

  	
  LIBOR

  Margin

  	
   

  	
  Base

  Rate Margin

  	
   

  
	
  Greater than Or equal to

  	
   

  	
  3.00:1.00

  	
   

  	
  2.25

  	
  %

  	
  1.25

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Less than

  	
   

  	
  3.00:1.00

  	
   

  	
  2.00

  	
  %

  	
  1.00

  	
  %

  

 

provided that, for
the first six months after the Restatement Date, the applicable margin for
Loans that are LIBOR Loans shall be 2.25% per annum and for Loans that are Base
Rate Loans shall be 1.25% per annum; provided, further, that for
any date after the IPO and at least six months after the Restatement Date the
applicable LIBOR Margin or Base Rate Margin, as the case may be, shall be
reduced by 0.25%.

 

(ii)                                  Upon delivery
of the Pricing Certificate by Company to Administrative Agent pursuant to subsection 6.1(iv),
the Base Rate Margin and the LIBOR Margin shall automatically be adjusted in
accordance with such Pricing Certificate, such adjustment to become effective
on the third succeeding Business Day following the receipt by Administrative
Agent of such Pricing Certificate (subject to the provisions of the foregoing
clause (i)); provided that, if at any time a Pricing Certificate is not
delivered at the time required pursuant to subsection 6.1(iv), from the
time such Pricing Certificate was required to be delivered until the third
Business Day succeeding delivery of such Pricing Certificate, the applicable
margins shall be the maximum percentage amount for the relevant Loan set forth
above.

 

(iii)                               Subject to the
provisions of subsections 2.2E, 2.2G and 2.7, the Swing Line Loans shall bear
interest through maturity at the sum of the Base Rate plus the
applicable Base Rate Margin for Revolving Loans minus a rate equal to the
commitment fee percentage then in effect as determined pursuant to subsection 2.3A.

 

45

 

B.                                    Interest Periods.  In
connection with each LIBOR Loan, Company may, pursuant to the applicable Notice
of Borrowing or Notice of Conversion/Continuation, as the case may be, select
an interest period (each an “Interest Period”)
to be applicable to such Loan, which Interest Period shall be, at Company’s
option, either a one, two, three or six month period or, if deposits in the
London interbank market are generally available for such period (as determined
by Administrative Agent), a nine month period; provided that:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

46

 

(viii)                        in the event
Company fails to specify an Interest Period for any LIBOR Loan in the
applicable Notice of Borrowing or Notice of Conversion/Continuation, Company
shall be deemed to have selected an Interest Period of one month.

 

C.                                    Interest Payments. 
Subject to the provisions of subsection 2.2E, interest on each Loan
shall be payable in arrears on and to each Interest Payment Date applicable to
that Loan, upon any prepayment of that Loan (to the extent accrued on the
amount being prepaid) and at maturity (including final maturity).

 

D.                                    Conversion or Continuation.  Subject to the provisions of subsection 2.6,
Company shall have the option (i) to convert at any time all or any part
of its outstanding Term Loans or Revolving Loans equal to $2,500,000 and
multiples of $250,000 in excess of that amount from Loans bearing interest at a
rate determined by reference to one basis to Loans bearing interest at a rate
determined by reference to an alternative basis; or (ii) upon the
expiration of any Interest Period applicable to a LIBOR Loan, to continue all
or any portion of such Loan equal to $2,500,000 and multiples of $250,000 in
excess of that amount as a LIBOR Loan; provided,  however, that a
LIBOR Loan may only be converted into a Base Rate Loan on the expiration date
of an Interest Period applicable thereto.

 

Company shall deliver a duly executed Notice of Conversion/Continuation
to Administrative Agent no later than 2:00 P.M. (New York City time) at
least one Business Day in advance of the proposed conversion date (in the case
of a conversion to a Base Rate Loan) and no later than 11:00 A.M. (New
York City time) at least three Business Days in advance of the proposed
conversion/continuation date (in the case of a conversion to, or a continuation
of, a LIBOR Loan).  In lieu of delivering
a Notice of Conversion/Continuation, Company may give Administrative Agent
telephonic notice by the required time of any proposed conversion/continuation
under this subsection 2.2D; provided that such notice shall be
promptly confirmed in writing by delivery of a duly executed Notice of
Conversion/Continuation to Administrative Agent on or before the proposed
conversion/continuation date. 
Administrative Agent shall notify each Lender of any Loan subject to a
Notice of Conversion/Continuation.

 

E.                                      Default Rate.  Upon the
occurrence and during the continuation of any Event of Default, upon election
by Requisite Lenders, the outstanding principal amount of all Loans and, to the
extent permitted by applicable law, any interest payments thereon not paid when
due and any fees and other amounts then due and payable hereunder, shall
thereafter bear interest (including post-petition interest in any proceeding
under the Bankruptcy Code or other applicable bankruptcy laws) payable upon
demand by Administrative Agent at a rate that is 2% per annum in excess of the
interest rate otherwise payable under this Agreement with respect to the
applicable Loans (or, in the case of any such fees and other amounts, at a rate
which is 2% per annum in excess of the interest rate otherwise payable under
this Agreement for Base Rate Loans); provided that, in the case of LIBOR
Loans, upon the expiration of the Interest Period in effect at the time any
such increase in interest rate is effective such LIBOR Loans shall thereupon
become Base Rate Loans and shall thereafter bear interest payable upon demand
at a rate which is 2% per annum in excess of the interest rate otherwise
payable under this Agreement for Base Rate Loans.  Payment or acceptance of the increased rates
of interest provided for in this subsection 2.2E is not a permitted
alternative to timely payment and shall not constitute a 

 

47

 

waiver of any Event of Default or otherwise prejudice or limit any
rights or remedies of Administrative Agent or any Lender.

 

F.                                      Computation of Interest.  Interest on the Loans shall be computed on
the basis of a 360-day year, in each case for the actual number of days elapsed
in the period during which it accrues. 
In computing interest on any Loan, the date of the making of such Loan
or the first day of an Interest Period applicable to such Loan or, with respect
to a Base Rate Loan being converted from a LIBOR Loan, the date of conversion
of such LIBOR Loan to such Base Rate Loan, as the case may be, shall be
included, and the date of payment of such Loan or the expiration date of an
Interest Period applicable to such Loan or, with respect to a Base Rate Loan being
converted to a LIBOR Loan, the date of conversion of such Base Rate Loan to
such LIBOR Loan, as the case may be, shall be excluded; provided that if
a Loan is repaid on the same day on which it is made, one day’s interest shall
be paid on that Loan.

 

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

 

2.3                               Fees.

 

A.                                    Commitment Fees. 
Company agrees to pay to Administrative Agent, for distribution to each
Revolving Lender in proportion to that Lender’s Pro Rata Share, commitment fees
for the period from and including the Closing Date to and excluding the
Revolving Loan Commitment Termination Date equal to the average of the daily
excess of the Revolving Loan Commitment Amount over the sum of (i) the
aggregate principal amount of outstanding Revolving Loans (but not any
outstanding Swing Line Loans) plus (ii) the Letter of Credit Usage multiplied
by 0.50% per annum, such commitment fees to be calculated on the basis of a
360-day year and the actual number of days elapsed and to be payable quarterly
in arrears on the last Business Day of each Fiscal Quarter, commencing on the
first such date to occur after the Closing Date, and on the Revolving Loan
Commitment Termination Date.

 

B.                                    Other Fees.  Company
agrees to pay to Administrative Agent such fees in the amounts and at the times
separately agreed upon between Company and Administrative Agent.

 

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

 

A.                                    Scheduled Payments of Term Loans.  Company shall
make principal payments on the Term Loans in installments on the dates and in
the amounts set forth below:

 

48

 

	
  Last
  Business Day of Fiscal Quarter

  Ending

  	
   

  	
  Scheduled Repayment

  	
   

  
	
  October 1, 2005

  	
   

  	
  $

  	
  375,000

  	
   

  
	
  December 31, 2005

  	
   

  	
  $

  	
  375,000

  	
   

  
	
  April 1, 2006

  	
   

  	
  $

  	
  375,000

  	
   

  
	
  July 1, 2006

  	
   

  	
  $

  	
  375,000

  	
   

  
	
  September 30, 2006

  	
   

  	
  $

  	
  375,000

  	
   

  
	
  December 30, 2006

  	
   

  	
  $

  	
  375,000

  	
   

  
	
  March 31, 2007

  	
   

  	
  $

  	
  375,000

  	
   

  
	
  June 30, 2007

  	
   

  	
  $

  	
  375,000

  	
   

  
	
  September 29, 2007

  	
   

  	
  $

  	
  375,000

  	
   

  
	
  December 29, 2007

  	
   

  	
  $

  	
  375,000

  	
   

  
	
  March 29, 2008

  	
   

  	
  $

  	
  375,000

  	
   

  
	
  June 28, 2008

  	
   

  	
  $

  	
  375,000

  	
   

  
	
  September 27, 2008

  	
   

  	
  $

  	
  375,000

  	
   

  
	
  January 3, 2009

  	
   

  	
  $

  	
  375,000

  	
   

  
	
  April 4, 2009

  	
   

  	
  $

  	
  375,000

  	
   

  
	
  July 4, 2009

  	
   

  	
  $

  	
  375,000

  	
   

  
	
  October 3, 2009

  	
   

  	
  $

  	
  36,000,000

  	
   

  
	
  January 2, 2010

  	
   

  	
  $

  	
  36,000,000

  	
   

  
	
  April 3, 2010

  	
   

  	
  $

  	
  36,000,000

  	
   

  
	
  May 11, 2010

  	
   

  	
  $

  	
  36,000,000

  	
   

  

 

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

 

49

 

sufficient to repay all amounts owing by Company under this Agreement
with respect to the Term Loans.

 

B.                                    Prepayments and Reductions in Revolving Loan Commitment Amount.

 

(i)                                     Voluntary
Prepayments.  Company
may, upon written or telephonic notice to Administrative Agent on or prior to
11:00 A.M. (New York City time) on the date of prepayment, which notice,
if telephonic, shall be promptly confirmed in writing, at any time and from
time to time prepay any Swing Line Loan on any Business Day in whole or in part
in an aggregate minimum amount of $1,000,000 and multiples of $250,000 in excess
of that amount.  Company may, upon not
less than one Business Day’s prior written or telephonic notice, in the case of
Base Rate Loans, and three Business Days’ prior written or telephonic notice,
in the case of LIBOR Loans, in each case given to Administrative Agent by 2:00 P.M.
(New York City time) on the date required and, if given by telephone, promptly
confirmed in writing to Administrative Agent, who will promptly notify each
Lender whose Loans are to be prepaid of such prepayment, at any time and from
time to time prepay any Term Loans or Revolving Loans on any Business Day in
whole or in part in an aggregate minimum amount of $2,500,000 and multiples of
$250,000 in excess of that amount.  Notice of prepayment having been given as
aforesaid, the principal amount of the Loans specified in such notice shall
become due and payable on the prepayment date specified therein.  Any such voluntary prepayment shall be
applied as specified in subsection 2.4B(iv).

 

(ii)                                  Voluntary
Reductions of Revolving Loan Commitments.  Company may, upon not less than three
Business Days’ prior written or telephonic notice confirmed in writing to
Administrative Agent, or upon such lesser number of days’ prior written or
telephonic notice, as determined by Administrative Agent in its sole
discretion, at any time and from time to time, terminate in whole or
permanently reduce in part, without premium or penalty, the Revolving Loan
Commitment Amount in an amount up to the amount by which the Revolving Loan
Commitment Amount exceeds the Total Utilization of Revolving Loan Commitments
at the time of such proposed termination or reduction; provided that any
such partial reduction of the Revolving Loan Commitment Amount shall be in an
aggregate minimum amount of $1,000,000 and multiples of $250,000 in excess of
that amount.  Company’s notice to
Administrative Agent (who will promptly notify each Revolving Lender of such
notice) shall designate the date (which shall be a Business Day) of such
termination or reduction and the amount of any partial reduction, and such
termination or reduction shall be effective on the date specified in Company’s
notice and shall reduce the amount of the Revolving Loan Commitment of each
Revolving Lender proportionately to its Pro Rata Share.  Any such voluntary reduction of the Revolving
Loan Commitment Amount shall be applied as specified in subsection 2.4B(iv).

 

50

 

(iii)                               Mandatory
Prepayments.  The Loans
shall be prepaid (but the Revolving Loan Commitment Amount shall in no event be
required to be permanently reduced) in the amounts and under the circumstances
set forth below, all such prepayments to be applied as set forth below or as
more specifically provided in subsection 2.4B(iv) and subsection 2.4D:

 

(a)                                  Prepayments
from Net Asset Sale Proceeds.  No later than the second Business Day
following the date of receipt by Company or any of its Domestic Subsidiaries of
any Net Asset Sale Proceeds in respect of any Asset Sale, Company shall either (1) prepay
the Loans in an aggregate amount equal to such Net Asset Sale Proceeds or (2),
so long as (A) no Event of Default shall have occurred and be continuing
and (B) such Net Asset Sale Proceeds are not proceeds from a sale and
leaseback transaction under subsection 7.10, and to the extent that
aggregate Net Asset Sale Proceeds from any single transaction or related series
of transactions do not exceed $10,000,000, deliver to Administrative Agent an
Officer’s Certificate setting forth (x) that portion of such Net Asset Sale
Proceeds that Company or such Subsidiary intends to enter into binding
commitments to reinvest in equipment or other productive assets of the general
type used in the business of Company and its Subsidiaries within 360 days of
such date of receipt and (y) the proposed use of such portion of the Net Asset
Sale Proceeds and such other information with respect to such reinvestment as
Administrative Agent may reasonably request, and Company shall, or shall cause
one or more of its Subsidiaries to, promptly and diligently apply such portion
to such reinvestment purposes; provided, however, that, pending
such reinvestment, such portion of the Net Asset Sale Proceeds shall be applied
to prepay outstanding Revolving Loans (without a reduction in the Revolving
Loan Commitment Amount) to the full extent thereof.  In addition, Company shall, no later than 360
days after receipt of such Net Asset Sale Proceeds that have not theretofore
been applied to the Obligations or that have not been so committed as provided
above, make an additional prepayment of the Loans in the full amount of all
such Net Asset Sale Proceeds.

 

(b)                                 Prepayments
from Net Insurance/Condemnation Proceeds.  No later than the second Business Day
following the date of receipt by Administrative Agent or by Company or any of
its Domestic Subsidiaries (or, in the case of the Representations and
Warranties Insurance Policy, any other Person) of any Net
Insurance/Condemnation Proceeds that are required to be applied to prepay the
Loans pursuant to the provisions of subsection 6.4C, Company shall prepay
the Loans in an aggregate amount equal to the amount of such Net
Insurance/Condemnation Proceeds.

 

(c)                                  Prepayments Due to Issuance
of Capital Stock.  No later
than the second Business Day following the date of receipt of the Net
Securities Proceeds from the issuance of any Capital Stock of Company or of
Holdings or of any Domestic Subsidiary of Company or from any capital
contribution to Holdings by any holder of Capital Stock thereof after the Closing
Date, Company shall prepay 

 

51

 

the Loans in an aggregate amount equal to (1) 100%
of such Net Securities Proceeds if such Net Securities Proceeds are received
prior to the date of the IPO or (2) 50% of such Net Securities Proceeds if
such Net Securities Proceeds are received on or after the date of the IPO; provided,
however, that such prepayment shall not be required if the Consolidated
Leverage Ratio as of the last day of the most recently ended four Fiscal
Quarter period for which the applicable Compliance Certificate has been
delivered pursuant to subsection 6.1(v) is less than or equal to 2.00
to 1.00.  Notwithstanding the foregoing
sentence, Company shall not be required to prepay the Loans as a result of (A) issuances
of Capital Stock by Holdings to any Equity Investor to the extent the proceeds
of such issuance and sale of Capital Stock are promptly contributed by Holdings
to Company as common equity, (B) issuances of Capital Stock in connection
with an Employee Benefit Plan or other executive compensation arrangement or (C) the
IPO to the extent Net Securities Proceeds from such issuance and sale of
Capital Stock are used to redeem outstanding shares of the Holdings Perpetual
Preferred Stock and outstanding options to purchase the Holdings Perpetual
Preferred Stock, in an amount equal to the redemption price thereof (including
any redemption premium), to pay the unpaid dividends thereon and to pay the IPO
Fees payable directly by Holdings.

 

(d)                                 Prepayments Due
to Issuance of Indebtedness.  No later than the second Business Day
following the date of receipt of the Net Securities Proceeds from the issuance
of any Indebtedness of Company, Holdings or any of its Domestic Subsidiaries
after the Closing Date, other than Indebtedness permitted pursuant to subsection 7.1,
Company shall prepay the Loans in an aggregate amount equal to such Net
Securities Proceeds; provided, however, that such prepayment
shall not be required if the Consolidated Leverage Ratio as of the last day of
the most recently ended four Fiscal Quarter period for which the applicable
Compliance Certificate has been delivered pursuant to subsection 6.1(v) is
less than or equal to 2.00 to 1.00.

 

(e)                                  Prepayments
from Consolidated Excess Cash Flow.  In the event that there shall be Consolidated
Excess Cash Flow for any Fiscal Year, Company shall, no later than five days
after the date that audited financial statements are delivered by Company in
respect of such period pursuant to subsection 6.1(iii), prepay the Loans
in an aggregate amount equal to (1) 75% of such Consolidated Excess Cash
Flow minus (2) the aggregate principal amount of Term Loans prepaid
by Company during such period pursuant to subsection 2.4B(i); provided,
however, that such percentage shall be reduced to 50% of such
Consolidated Excess Cash Flow for any full Fiscal Year for which as of the last
day of such Fiscal Year the Consolidated Leverage Ratio is less than or equal
to 3.50 to 1.00; provided, further, however, that such percentage
shall be reduced to 0% of such Consolidated Excess Cash Flow for any full
Fiscal Year for which as of the last day of such Fiscal Year the Consolidated
Leverage Ratio is less than or equal to 2.50 to 1.00.

 

52

 

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

 

(g)                                 Prepayments Due
to Reductions or Restrictions of Revolving Loan Commitment Amount or Due to
Insufficient Borrowing Base.  Company
shall immediately prepay first the Swing Line Loans and second the Revolving
Loans (and, after prepaying all Revolving Loans, Cash collateralize any
outstanding Letters of Credit by depositing the requisite amount in the
Collateral Account) to the extent necessary to give effect to the limitations
set forth in clauses (a) and (b) of the second paragraph of subsection 2.1A(ii).  At such time as the Total Utilization of
Revolving Loan Commitments shall be equal to or less than the Revolving Loan
Commitment Amount and the limitations set forth in clause (b) of the
second paragraph of subsection 2.1A(ii) are not exceeded, if no Event
of Default has occurred and is continuing, such amount may, at the request of
Company, be released to Company.

 

(iv)                              Application of
Prepayments.

 

(a)                                  Application of
Voluntary Prepayments by Type of Loans and Order of Maturity.  Any voluntary prepayments pursuant to subsection 2.4B(i) shall
be applied as specified by Company in the applicable notice of prepayment; provided
that in the event Company fails to specify the Loans to which any such
prepayment shall be applied, such prepayment shall be applied first to
repay outstanding Swing Line Loans to the full extent thereof, second to
repay outstanding Revolving Loans to the full extent thereof, and third
to repay outstanding Term Loans to the full extent thereof.  Any voluntary prepayments of the Term Loans
pursuant to subsection 2.4B(i) shall be applied first to
reduce the next four scheduled installments of principal of the Term Loans in
forward chronological order, and second to reduce the remaining
scheduled installments of principal of the Term Loans on a pro rata basis (in
accordance with the respective outstanding principal amounts thereof) to each
remaining scheduled installment of principal of the Term Loans set forth in subsection 2.4A.

 

53

 

(b)                                 Application of
Mandatory Prepayments by Type of Loans.  Except as provided in subsection 2.4D,
any amount required to be applied as a mandatory prepayment of the Loans
pursuant to subsections 2.4B(iii)(a)-(f) shall be applied first to
prepay the Term Loans to the full extent thereof (it being understood that
there shall be no reduction of the Revolving Loan Commitment Amount as a result
of such prepayment), second, to the extent of any remaining portion of
such amount, to prepay the Swing Line Loans to the full extent thereof (it
being understood that there shall be no reduction of the Revolving Loan
Commitment Amount as a result of such prepayment), and third, to the
extent of any remaining portion of such amount, to prepay the Revolving Loans
to the full extent thereof (it being understood that there shall be no reduction
of the Revolving Loan Commitment Amount as a result of such prepayment).

 

(c)                                  Application of
Mandatory Prepayments of Term Loans to Term Loans and the Scheduled
Installments of Principal Thereof.  Except as provided in subsection 2.4D,
any mandatory prepayments of the Term Loans pursuant to subsection 2.4B(iii) shall
be applied to reduce the scheduled installments of principal of the Term Loans
on a pro rata basis (in accordance with the respective outstanding principal
amounts thereof) to each remaining scheduled installment of principal of the
Term Loans set forth in subsection 2.4A.

 

(d)                                 Application of
Prepayments to Base Rate Loans and LIBOR Loans.  Considering Term Loans and Revolving Loans
being prepaid separately, any prepayment thereof shall be applied first to Base
Rate Loans to the full extent thereof before application to LIBOR Loans, in
each case in a manner that minimizes the amount of any payments required to be
made by Company pursuant to subsection 2.6D; provided, however,
that Company may elect that the remainder of such prepayments not applied to
prepay Base Rate Loans be deposited in the Collateral Account and applied
thereafter to prepay the LIBOR Loan or Loans with Interest Periods expiring on
a date or dates nearest the date of deposit in accordance with this subsection 2.4B(iv),
upon expiration of such Interest Periods.

 

C.                                    General Provisions Regarding Payments.

 

(i)                                     Manner and Time
of Payment.  All
payments by Company of principal, interest, fees and other Obligations shall be
made in Dollars in same day funds, without defense, setoff or counterclaim,
free of any restriction or condition, and delivered to Administrative Agent not
later than 1:00 P.M. (New York City time) on the date due at the Funding
and Payment Office for the account of Lenders; funds received by Administrative
Agent after that time on such due date shall be deemed to have been paid by
Company on the next succeeding Business Day. 
Notwithstanding the foregoing sentence, payment of amounts deposited in
the Collateral Account pursuant to the proviso to subsection 2.4B(iv)(d) shall
be deemed to have been paid by Company on the applicable date or dates such
amounts are applied to prepay LIBOR Loans. 
Company hereby authorizes Administrative Agent to charge its accounts
with Administrative Agent 

 

54

 

in order to cause timely payment to be made
to Administrative Agent of all principal, interest, fees and expenses due
hereunder (subject to sufficient funds being available in its accounts for that
purpose).

 

(ii)                                  Application of
Payments to Principal and Interest.  All payments in respect of the principal
amount of any Loan shall include payment of accrued interest on the principal
amount being repaid or prepaid, and all such payments shall be applied to the
payment of interest before application to principal.

 

(iii)                               Apportionment
of Payments.  Aggregate
payments of principal and interest shall be apportioned among all outstanding
Loans to which such payments relate, in each case proportionately to Lenders’
respective Pro Rata Shares. 
Administrative Agent shall promptly distribute to each Lender, at the
account specified in the payment instructions set forth below its name on the
appropriate signature page hereof or at such other account as such Lender
may request in subsequent payment instructions delivered to Administrative
Agent by such Lender, its Pro Rata Share of all such payments received by
Administrative Agent and the commitment fees and letter of credit fees of such
Lender, if any, when received by Administrative Agent pursuant to
subsections 2.3 and 3.2. 
Notwithstanding the foregoing provisions of this subsection 2.4C(iii),
if, pursuant to the provisions of subsection 2.6C, any Notice of
Conversion/Continuation is withdrawn as to any Affected Lender or if any
Affected Lender makes Base Rate Loans in lieu of its Pro Rata Share of any
LIBOR Loans, Administrative Agent shall give effect thereto in apportioning
interest payments received thereafter.

 

(iv)                              Payments on
Business Days.  Whenever
any payment to be made hereunder shall be stated to be due on a day that is not
a Business Day, such payment shall be made on the next succeeding Business Day
and such extension of time shall be included in the computation of the payment
of interest hereunder or of the commitment fees hereunder, as the case may be.

 

D.                                    Application of Proceeds of Collateral and Payments after Event of
Default.  Upon the
occurrence and during the continuation of an Event of Default, if requested by
Requisite Lenders, or upon acceleration of the Obligations pursuant to Section 8,
(a) all payments received by Administrative Agent, whether from Company,
Holdings or any Subsidiary Guarantor or otherwise, and (b) all proceeds
received by Administrative Agent in respect of any sale of, collection from, or
other realization upon all or any part of the Collateral under any Collateral
Document may, in the discretion of Administrative Agent, be held by
Administrative Agent as Collateral for, and/or (then or at any time thereafter)
applied in full or in part by Administrative Agent, in each case in the
following order of priority:

 

(i)                                     to the payment
of all costs and expenses of such sale, collection or other realization, all
other expenses, liabilities and advances made or incurred by Administrative
Agent in connection therewith, and all amounts for which Administrative Agent
is entitled to compensation (including the fees described in subsection 2.3),
reimbursement and indemnification under any Loan Document and all advances made
by Administrative Agent thereunder for the account of the applicable Loan
Party, and to the 

 

55

 

payment of all costs and expenses paid or
incurred by Administrative Agent in connection with the Loan Documents, all in
accordance with subsections 9.4, 10.2 and 10.3 and the other terms of this
Agreement and the Loan Documents;

 

(ii)                                  thereafter, to
the payment of all other Obligations and obligations of Loan Parties under any
Lender Swap Agreement (as defined in the Guaranty) for the ratable benefit of
the holders thereof (subject to the provisions of subsection 2.4C(ii));
and

 

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

 

2.5                               Use
of Proceeds.

 

A.                                    Term Loans.  The
proceeds of the Term Loans made on the Restatement Date shall be applied by
Company (a) to repay the Second Lien Term Loan and to pay any prepayment
premium related to such prepayment, (b) to pay all fees, costs and
expenses incurred by Holdings, Company and its Subsidiaries in connection with
the amendment of the Original Credit Agreement as provided herein and in
connection with any waivers, consents or approvals obtained from any Lenders to
effect any of the transactions contemplated hereby and (c) for general
corporate purposes.

 

B.                                    Revolving Loans; Swing Line Loans.  The proceeds of the Revolving Loans and any
Swing Line Loans shall be applied by Company (a) for working capital and
other general corporate purposes, which may include the making of intercompany
loans to any of Company’s wholly-owned Subsidiaries, in accordance with subsection 7.1(iv),
for their own general corporate purposes, (b) to pay the IPO Fees or to
make the IPO Fees Payment or an Investment in Holdings for the purpose of
permitting Holdings to pay the IPO Fees and (c) to make the Permitted
Dividend Payment, provided that the amount of the Permitted Dividend
Payment together with the aggregate amount of the Management Bonuses shall not
exceed $15,000,000.

 

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

 

2.6                               Special
Provisions Governing LIBOR Loans.

 

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

 

56

 

A.                                    Determination of Applicable Interest Rate.  On each Interest Rate Determination Date,
Administrative Agent shall determine in accordance with the terms of this
Agreement (which determination shall, absent manifest error, be conclusive and
binding upon all parties) the interest rate that shall apply to the LIBOR Loans
for which an interest rate is then being determined for the applicable Interest
Period and shall promptly give notice thereof (in writing or by telephone
confirmed in writing) to Company and each applicable Lender.

 

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

 

C.                                    Illegality or Impracticability of LIBOR Loans.  In the event that on any date any Lender
shall have determined (which determination shall be conclusive and binding upon
all parties hereto but shall be made only after consultation with Company and
Administrative Agent) that the making, maintaining or continuation of its LIBOR
Loans (i) has become unlawful as a result of compliance by such Lender in
good faith with any law, treaty, governmental rule, regulation, guideline or
order (or would conflict with any such treaty, governmental rule, regulation,
guideline or order not having the force of law even though the failure to
comply therewith would not be unlawful) or (ii) has become impracticable,
or would cause such Lender material hardship, as a result of contingencies
occurring after the date of this Agreement which materially and adversely
affect the London interbank market or the position of such Lender in that market,
then, and in any such event, such Lender shall be an “Affected Lender” and it shall on that day give notice (by
telefacsimile or by telephone confirmed in writing) to Company and
Administrative Agent of such determination. 
Administrative Agent shall promptly notify each other Lender of the
receipt of such notice.  Thereafter (a) the
obligation of the Affected Lender to make Loans as, or to convert Loans to,
LIBOR Loans shall be suspended until such notice shall be withdrawn by the
Affected Lender, (b) to the extent such determination by the Affected
Lender relates to a LIBOR Loan then being requested by Company pursuant to a
Notice of Borrowing or a Notice of Conversion/Continuation, the Affected Lender
shall make such Loan as (or convert such Loan to, as the case may be) a Base
Rate Loan, (c) the Affected Lender’s obligation to maintain its
outstanding LIBOR Loans (the “Affected Loans”)
shall be terminated at the earlier to occur of the expiration of the Interest
Period then in effect with respect to the Affected Loans or when required by
law, and (d) the Affected Loans shall automatically convert into Base Rate
Loans on the date of such termination. 
Notwithstanding the foregoing, to the extent a determination by an
Affected Lender as described above relates to a LIBOR Loan then being requested
by Company pursuant to a Notice of 

 

57

 

Borrowing or a Notice of Conversion/Continuation, Company shall have
the option, subject to the provisions of subsection 2.6D, to rescind such
Notice of Borrowing or Notice of Conversion/Continuation as to all Lenders by
giving notice (by telefacsimile or by telephone confirmed in writing) to
Administrative Agent of such rescission on the date on which the Affected
Lender gives notice of its determination as described above.  Administrative Agent shall promptly notify
each other Lender of the receipt of such notice.  Except as provided in the immediately
preceding sentence, nothing in this subsection 2.6C shall affect the
obligation of any Lender other than an Affected Lender to make or maintain
Loans as, or to convert Loans to, LIBOR Loans in accordance with the terms of
this Agreement.

 

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

 

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

 

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

 

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

 

58

 

2.7                               Increased
Costs; Taxes; Capital Adequacy.

 

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

 

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

 

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

 

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

 

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

 

59

 

B.                                    Taxes.

 

(i)                                     Payments to Be
Free and Clear.  Except as
provided in this subsection 2.7B, all sums payable by Company under this
Agreement and the other Loan Documents shall be paid free and clear of, and
without any deduction or withholding on account of, any Tax imposed, levied,
collected, withheld or assessed by or within the United States or any political
subdivision in or of the United States or any other jurisdiction from or to
which a payment is made by or on behalf of Company or by any federation or
organization of which the United States or any such jurisdiction is a member at
the time of payment.

 

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

 

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

 

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

 

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

 

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

 

provided that no such additional amount shall
be required to be paid to any Lender under clause (c) above except to the
extent that any change in any applicable law, treaty or governmental rule regulation
or order, or any change in the interpretation, administration or application
thereof (including the introduction of any new law, treaty or governmental
rule, regulation or order), or any determination of a court or other Government
Authority, or any guideline, request or directive issued or made after the date
hereof by any central bank or other Government Authority 

 

60

 

(whether or not having the force of law), in each case after the later
of the Restatement Date and the date on which such Lender became a Lender, in
any such requirement for a deduction, withholding or payment as is mentioned
therein shall result in an increase in the rate of such deduction, withholding
or payment from that in effect on the date on which such Lender became a Lender
in respect of payments to such Lender.

 

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

 

(a)                                  Each Non-US
Lender shall deliver to Administrative Agent and to Company, on or prior to the
Restatement Date (in the case of each Lender listed on the signature pages hereof)
or on or prior to the date of the Assignment Agreement pursuant to which it
becomes a Lender (in the case of each other Lender), and at such other times as
may be necessary in the determination of Company or Administrative Agent (each
in the reasonable exercise of its discretion), two original copies of Internal
Revenue Service Form W-8BEN or W-8ECI (or any successor forms) properly
completed and duly executed by such Lender, or, in the case of a Non-US Lender
claiming exemption from United States federal withholding tax under Section 871(h) or
881(c) of the Internal Revenue Code with respect to payments of “portfolio
interest”, a Form W-8BEN, and a certificate of such Lender certifying that
such Lender is not (1) a “bank” for purposes of Section 881(c) of
the Internal Revenue Code, (2) a ten-percent shareholder (within the
meaning of Section 871(h)(3)(B) of the Internal Revenue Code) of
Company or Holdings or (3) a controlled foreign corporation related to
Company (within the meaning of Section 864(d)(4) of the Internal
Revenue Code) in each case together with any other certificate or statement of
exemption required under the Internal Revenue Code or the regulations issued
thereunder to establish that such Lender is not subject to United States
withholding tax with respect to any payments to such Lender of interest payable
under any of the Loan Documents.

 

(b)                                 Each Non-US
Lender, to the extent it does not act or ceases to act for its own account with
respect to any portion of any sums paid or payable to such Lender under any of
the Loan Documents (for example, in the case of a typical participation by such
Lender), shall deliver to Administrative Agent and to Company, on or prior to
the Restatement Date (in the case of each Lender listed on the signature pages hereof),
on or prior to the date of the Assignment Agreement pursuant to which it
becomes a Lender (in the case of each other Lender), or on such later date when
such Lender ceases to act for its own account with respect to any portion of
any such sums paid or payable, and at such other times as may be necessary in
the determination of Company or Administrative Agent (each in the reasonable
exercise of its discretion), (1) two original copies of the forms or
statements required to be provided by such Lender under subsection 2.7B(iii)(a),
properly completed and duly executed by such Lender, to establish the portion
of any such sums paid or payable with respect to which such Lender acts for its
own account that is not subject to United States withholding tax, and (2) two
original copies of Internal Revenue Service Form W-8IMY (or any 

 

61

 

successor forms) properly completed and duly
executed by such Lender, together with any information, if any, such Lender
chooses to transmit with such form, and any other certificate or statement of
exemption required under the Internal Revenue Code or the regulations issued
thereunder, to establish that such Lender is not acting for its own account
with respect to a portion of any such sums payable to such Lender.

 

(c)                                  Each Non-US
Lender hereby agrees, from time to time after the initial delivery by such
Lender of such forms, whenever a lapse in time or change in circumstances
renders such forms, certificates or other evidence so delivered obsolete or
inaccurate in any material respect, that such Lender shall promptly (1) deliver
to Administrative Agent and to Company two original copies of renewals,
amendments or additional or successor forms, properly completed and duly
executed by such Lender, together with any other certificate or statement of
exemption required in order to confirm or establish that such Lender is not
subject to United States withholding tax with respect to payments to such
Lender under the Loan Documents and, if applicable, that such Lender does not
act for its own account with respect to any portion of such payment, or (2) notify
Administrative Agent and Company of its inability to deliver any such forms,
certificates or other evidence.

 

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

 

C.                                    Capital Adequacy Adjustment.  If any Lender shall have determined that the
adoption, effectiveness, phase-in or applicability after the date hereof of any
law, rule or regulation (or any provision thereof) regarding capital
adequacy, or any change therein or in the interpretation or administration
thereof by any Government Authority charged with the interpretation or
administration thereof, or compliance by any Lender with any guideline, request
or directive regarding capital adequacy (whether or not having the force of
law) of any such Government Authority, in each case, after the date hereof, has
or would have the effect of reducing the rate of return on the capital of such
Lender or any corporation controlling such Lender as a consequence of, or with
reference to, such Lender’s Loans or Commitments or 

 

62

 

Letters of Credit or participations therein or other obligations
hereunder with respect to the Loans or the Letters of Credit to a level below
that which such Lender or such controlling corporation could have achieved but
for such adoption, effectiveness, phase-in, applicability, change or compliance
(taking into consideration the policies of such Lender or such controlling
corporation with regard to capital adequacy), then from time to time, within
five Business Days after receipt by Company from such Lender of the statement
referred to in subsection 2.8A, Company shall pay to such Lender such
additional amount or amounts as will compensate such Lender or such controlling
corporation on an after-tax basis for such reduction.

 

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

 

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

 

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

 

2.9                               Replacement
of a Lender.

 

If Company receives a statement of amounts due pursuant to subsection 2.8A
from a Lender, a Revolving Lender defaults in its obligations to fund a
Revolving Loan pursuant to this Agreement, a Lender (a “Non-Consenting Lender”) refuses to consent
to an amendment, modification or waiver of this Agreement that, pursuant to subsection 10.6,
requires consent of 100% of the Lenders or 100% of the Lenders with Obligations
directly affected or a Lender becomes an Affected Lender (any such Lender, a “Subject Lender”), so long as (i) Company
has obtained a commitment from another Lender or an Eligible Assignee to
purchase at par the Subject Lender’s Loans and assume the Subject Lender’s
Commitments and all other obligations 

 

63

 

of the Subject Lender hereunder, (ii) such Lender is not an
Issuing Lender with respect to any Letters of Credit outstanding (unless all
such Letters of Credit are terminated or arrangements acceptable to such
Issuing Lender (such as a “back-to-back” letter of credit) are made) and (iii),
if applicable, the Subject Lender is unwilling to withdraw the notice delivered
to Company pursuant to subsection 2.8 and/or is unwilling to remedy its
default upon ten days prior written notice to the Subject Lender and
Administrative Agent, Company may require the Subject Lender to assign all of
its Loans and Commitments to such other Lender, Lenders, Eligible Assignee or
Eligible Assignees pursuant to the provisions of subsection 10.1B; provided
that, prior to or concurrently with such replacement, (a) the Subject
Lender shall have received payment in full of all principal, interest, fees and
other amounts (including all amounts under subsections 2.6D, 2.7 and/or 2.8B
(if applicable)) through such date of replacement and a release from its
obligations under the Loan Documents, (b) the processing fee required to
be paid by subsection 10.1B(i) shall have been paid to Administrative
Agent, (c) all of the requirements for such assignment contained in subsection 10.1B,
including, without limitation, the consent of Administrative Agent (if
required) and the receipt by Administrative Agent of an executed Assignment
Agreement executed by the assignee (Administrative Agent being hereby
authorized to execute any Assignment Agreement on behalf of a Subject Lender
relating to the assignment of Loans and/or Commitments of such subject Lender)
and other supporting documents, have been fulfilled, and (d) in the event
such Subject Lender is a Non-Consenting Lender, each assignee shall consent, at
the time of such assignment, to each matter in respect of which such Subject
Lender was a Non-Consenting Lender and Company also requires each other Subject
Lender that is a Non-Consenting Lender to assign its Loans and
Commitments.  For the avoidance of doubt,
if a Lender is a Non-Consenting Lender solely because it refused to consent to
an amendment, modification or waiver that required the consent of 100% of
Lenders with Obligations directly affected thereby (which amendment,
modification or waiver did not accordingly require the consent of 100% of all
Lenders), the Loans and Commitments of such Non-Consenting Lender that are
subject to the assignments required by this subsection 2.9 shall include
only those Loans and Commitments that constitute the Obligations directly
affected by the amendment, modification or waiver to which such Non-Consenting
Lender refused to provide its consent.

 

Section 3.                                          LETTERS
OF CREDIT

 

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

 

A.                                    Letters of Credit. 
Company may request, in accordance with the provisions of this subsection 3.1,
from time to time during the period from the Closing Date to but excluding the 30th
day prior to the Revolving Loan Commitment Termination Date, that one or more
Revolving Lenders issue Letters of Credit payable on a sight basis for the
account of Company for the general corporate purposes of Company or a
Subsidiary of Company.  Subject to the
terms and conditions of this Agreement and in reliance upon the representations
and warranties of Company herein set forth, any one or more Revolving Lenders
may, but (except as provided in subsection 3.1B(ii)) shall not be
obligated to, issue such Letters of Credit in accordance with the provisions of
this subsection 3.1; provided that Company shall not request that
any Revolving Lender issue (and no Revolving Lender shall issue):

 

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(i)                                     any Letter of
Credit if, after giving effect to such issuance, the Total Utilization of
Revolving Loan Commitments would exceed the lesser of (a) Revolving Loan
Commitment Amount then in effect or (b) the Borrowing Base then in effect;

 

(ii)                                  any Letter of
Credit if, after giving effect to such issuance, the Letter of Credit Usage
would exceed $10,000,000;

 

(iii)                               any Standby
Letter of Credit having an expiration date later than the earlier of (a) 30
days prior to the Revolving Loan Commitment Termination Date and (b) the
date which is one year from the date of issuance of such Standby Letter of
Credit; provided that the immediately preceding clause (b) shall
not prevent any Issuing Lender from agreeing that a Standby Letter of Credit
will automatically be extended for one or more successive periods not to exceed
one year each unless such Issuing Lender elects not to extend for any such
additional period; and provided, further that such Issuing Lender
shall elect not to extend such Standby Letter of Credit if it has knowledge
that an Event of Default has occurred and is continuing (and has not been
waived in accordance with subsection 10.6) at the time such Issuing Lender
must elect whether or not to allow such extension;

 

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

 

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

 

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

 

B.                                    Mechanics of Issuance.

 

(i)                                     Request for
Issuance.  Whenever
Company desires the issuance of a Letter of Credit, it shall deliver to
Administrative Agent a Request for Issuance no later than 1:00 P.M. (New
York City time) at least three Business Days (in the case of Standby Letters of
Credit) or five Business Days (in the case of Commercial Letters of Credit), or
in each case such shorter period as may be agreed to by the Issuing Lender in
any particular instance, in advance of the proposed date of issuance.  The Issuing Lender, in its reasonable
discretion, may require changes in the text of the proposed Letter of Credit or
any documents described in or attached to the Request for Issuance.  In furtherance of the provisions of subsection 10.8,
and not in limitation thereof, Company may submit Requests for Issuance by
telefacsimile and Administrative Agent and Issuing Lenders may rely and act
upon any such Request for Issuance without receiving an original signed copy
thereof.  No Letter of Credit shall
require payment against a conforming demand for payment to be made thereunder
on the same business day (under the laws of the 

 

65

 

jurisdiction in which the office of the
Issuing Lender to which such demand for payment is required to be presented is
located) on which such demand for payment is presented if such presentation is
made after 10:00 A.M. (in the time zone of such office of the Issuing
Lender) on such business day.

 

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

 

(ii)                                  Determination
of Issuing Lender.  Upon
receipt by Administrative Agent of a Request for Issuance pursuant to subsection 3.1B(i) requesting
the issuance of a Letter of Credit, in the event Administrative Agent elects to
issue such Letter of Credit, Administrative Agent shall promptly so notify
Company, and Administrative Agent shall be the Issuing Lender with respect
thereto.  In the event that
Administrative Agent, in its sole discretion, elects not to issue such Letter
of Credit, Administrative Agent shall promptly so notify Company, whereupon
Company may request any other Revolving Lender to issue such Letter of Credit
by delivering to such Revolving Lender a copy of the applicable Request for
Issuance.  Any Revolving Lender so
requested to issue such Letter of Credit shall promptly notify Company and Administrative
Agent whether or not, in its sole discretion, it has elected to issue such
Letter of Credit, and any such Revolving Lender that so elects to issue such
Letter of Credit shall be the Issuing Lender with respect thereto.  In the event that all other Revolving Lenders
shall have declined to issue such Letter of Credit, notwithstanding the prior
election of Administrative Agent not to issue such Letter of Credit,
Administrative Agent shall be obligated to issue such Letter of Credit and
shall be the Issuing Lender with respect thereto, notwithstanding the fact that
the Letter of Credit Usage with respect to such Letter of Credit and with
respect to all other Letters of Credit issued by Administrative Agent, when
aggregated with Administrative Agent’s outstanding Revolving Loans and Swing Line
Loans, may exceed the amount of Administrative Agent’s Revolving Loan
Commitment then in effect.

 

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

 

(iv)                              Notification to
Revolving Lenders.  Upon the
issuance of or amendment to any Letter of Credit the applicable Issuing Lender
shall promptly notify Administrative Agent and Company of such issuance or
amendment in writing and such notice shall be accompanied by a copy of such
Letter of Credit or amendment.

 

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

 

3.2                               Letter
of Credit Fees.

 

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

 

(i)                                     with respect to
each Letter of Credit, (a) a fronting fee, payable directly to the
applicable Issuing Lender for its own account, equal to 0.25% per annum of the
daily amount available to be drawn under such Letter of Credit and (b) a
letter of credit fee, payable to Administrative Agent for the account of
Revolving Lenders, equal to the applicable LIBOR Margin for Revolving Loans plus,
upon the application of increased rates of interest pursuant to subsection 2.2E,
2% per annum, multiplied by the daily amount available to be drawn under
such Letter of Credit, each such fronting fee or letter of credit fee to be
payable in arrears on and to (but excluding) the last Business Day of each Fiscal
Quarter and computed on the basis of a 360-day year for the actual number of
days elapsed; and

 

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

 

For purposes of calculating any fees payable under clause (i) of
this subsection 3.2, the daily amount available to be drawn under any
Letter of Credit shall be determined as of the close of business on any date of
determination.

 

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

 

A.                                    Responsibility of Issuing Lender with Respect to Drawings.  In determining whether to honor any drawing
under any Letter of Credit by the beneficiary thereof, the Issuing Lender shall
be responsible only to examine the documents delivered under such Letter of
Credit with reasonable care so as to ascertain whether they appear on their
face to be in accordance with the terms and conditions of such Letter of
Credit.

 

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B.                                    Reimbursement by Company of Amounts Paid Under Letters of Credit.  In the event an Issuing Lender has determined
to honor a drawing under a Letter of Credit issued by it, such Issuing Lender
shall immediately notify Company and Administrative Agent, and Company shall
reimburse such Issuing Lender on or before the Business Day immediately
following the date on which such drawing is honored (the “Reimbursement Date”) in an amount in
Dollars and in same day funds equal to the amount of such payment; provided
that, anything contained in this Agreement to the contrary notwithstanding, (i) unless
Company shall have notified Administrative Agent and such Issuing Lender prior
to 1:00 P.M. (New York City time) on the date such drawing is honored that
Company intends to reimburse such Issuing Lender for the amount of such payment
with funds other than the proceeds of Revolving Loans, Company shall be deemed
to have given a timely Notice of Borrowing to Administrative Agent requesting
Revolving Lenders to make Revolving Loans that are Base Rate Loans on the
Reimbursement Date in an amount in Dollars equal to the amount of such payment
and (ii) subject to satisfaction or waiver of the conditions specified in
subsection 4.2B, Revolving Lenders shall, on the Reimbursement Date, make
Revolving Loans that are Base Rate Loans in the amount of such payment, the
proceeds of which shall be applied directly by Administrative Agent to
reimburse such Issuing Lender for the amount of such payment; and provided,
further that if for any reason proceeds of Revolving Loans are not
received by such Issuing Lender on the Reimbursement Date in an amount equal to
the amount of such payment, Company shall reimburse such Issuing Lender, on
demand, in an amount in same day funds equal to the excess of the amount of
such payment over the aggregate amount of such Revolving Loans, if any, which
are so received.  Nothing in this subsection 3.3B
shall be deemed to relieve any Revolving Lender from its obligation to make
Revolving Loans on the terms and conditions set forth in this Agreement, and
Company shall retain any and all rights it may have against any Revolving
Lender resulting from the failure of such Revolving Lender to make such
Revolving Loans under this subsection 3.3B.

 

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

 

(i)                                     Payment by
Revolving Lenders.  In the
event that Company shall fail for any reason to reimburse any Issuing Lender as
provided in subsection 3.3B in an amount equal to the amount of any
payment by such Issuing Lender under a Letter of Credit issued by it, such
Issuing Lender shall promptly notify Administrative Agent, who shall promptly
notify each Revolving Lender of the unreimbursed amount of such honored drawing
and of such Revolving Lender’s respective participation therein based on such
Revolving Lender’s Pro Rata Share.  Each
Revolving Lender (other than such Issuing Lender) shall make available to
Administrative Agent an amount equal to its respective participation, in
Dollars, in same day funds, at the Funding and Payment Office, not later than
1:00 P.M. (New York City time) on the first Business Day after the date
notified by Administrative Agent, and Administrative Agent shall make available
to such Issuing Lender in Dollars, in same day funds, at the office of such
Issuing Lender on such Business Day the aggregate amount of the payments so
received by Administrative Agent.  In the
event that any Revolving Lender fails to make available to Administrative Agent
on such Business Day the amount of such Revolving Lender’s participation in

 

68

 

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

 

(ii)                                  Distribution to
Lenders of Reimbursements Received from Company.  In the event any Issuing Lender shall have
been reimbursed by other Revolving Lenders pursuant to subsection 3.3C(i) for
all or any portion of any payment by such Issuing Lender under a Letter of
Credit issued by it, and Administrative Agent or such Issuing Lender thereafter
receives any payments from Company in reimbursement of such payment under the
Letter of Credit, to the extent any such payment is received by such Issuing
Lender, it shall distribute such payment to Administrative Agent, and
Administrative Agent shall distribute to each other Revolving Lender that has
paid all amounts payable by it under subsection 3.3C(i) with respect
to such payment such Revolving Lender’s Pro Rata Share of all payments
subsequently received by Administrative Agent or by such Issuing Lender from
Company.  Any such distribution shall be
made to a Revolving Lender at the account specified in subsection 2.4C(iii).

 

D.                                    Interest on Amounts Paid Under Letters of Credit.

 

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

 

(ii)                                  Distribution of
Interest Payments by Administrative Agent.  Promptly upon receipt by Administrative Agent
of any payment of interest pursuant to subsection 3.3D(i) with
respect to a payment under a Letter of Credit, (a) Administrative Agent
shall distribute to (x) each Revolving Lender (including the Issuing
Lender) out of the interest 

 

69

 

received by Administrative Agent in respect
of the period from the date such drawing is honored to but excluding the date
on which the applicable Issuing Lender is reimbursed for the amount of such
payment (including any such reimbursement out of the proceeds of Revolving
Loans pursuant to subsection 3.3B), the amount that such Revolving Lender
would have been entitled to receive in respect of the letter of credit fee that
would have been payable in respect of such Letter of Credit for such period
pursuant to subsection 3.2 if no drawing had been honored under such
Letter of Credit, and (y) such Issuing Lender the amount, if any,
remaining after payment of the amounts applied pursuant to clause (x), and (b) in
the event such Issuing Lender shall have been reimbursed by other Revolving
Lenders pursuant to subsection 3.3C(i) for all or any portion of such
payment, Administrative Agent shall distribute to each Revolving Lender
(including such Issuing Lender) that has paid all amounts payable by it under
subsection 3.3C(i) with respect to such payment such Revolving Lender’s
Pro Rata Share of any interest received by Administrative Agent in respect of
that portion of such payment so made by Revolving Lenders for the period from
the date on which such Issuing Lender was so reimbursed to but excluding the
date on which such portion of such payment is reimbursed by Company.  Any such distribution shall be made to a Revolving
Lender at the account specified in subsection 2.4C(iii).

 

3.4                               Obligations
Absolute.

 

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

 

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

 

(ii)                                  the existence
of any claim, set-off, defense or other right which Company or any Lender may
have at any time against a beneficiary or any transferee of any Letter of
Credit (or any Persons for whom any such transferee may be acting), any Issuing
Lender or other Revolving Lender or any other Person or, in the case of a
Revolving Lender, against Company, whether in connection with this Agreement,
the transactions contemplated herein or any unrelated transaction (including
any underlying transaction between Company or one of its Subsidiaries and the
beneficiary for which any Letter of Credit was procured);

 

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

 

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

 

70

 

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

 

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

 

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

 

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

 

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

 

3.5                               Nature
of Issuing Lenders’ Duties.

 

As between Company and any Issuing Lender,
Company assumes all risks of the acts and omissions of, or misuse of the
Letters of Credit issued by such Issuing Lender by, the respective
beneficiaries of such Letters of Credit. 
In furtherance and not in limitation of the foregoing, such Issuing
Lender shall not be responsible for:  (i) the
form, validity, sufficiency, accuracy, genuineness or legal effect of any
document submitted by any party in connection with the application for and
issuance of any such Letter of Credit, even if it should in fact prove to be in
any or all respects invalid, insufficient, inaccurate, fraudulent or forged; (ii) the
validity or sufficiency of any instrument transferring or assigning or
purporting to transfer or assign any such Letter of Credit or the rights or
benefits thereunder or proceeds thereof, in whole or in part, which may prove
to be invalid or ineffective for any reason; (iii) failure of the
beneficiary of any such Letter of Credit to comply fully with any conditions
required in order to draw upon such Letter of Credit; (iv) errors, omissions,
interruptions or delays in transmission or delivery of any messages, by mail,
cable, telegraph, telex or otherwise, whether or not they be in cipher; (v) errors
in interpretation of technical terms; (vi) any loss or delay in the
transmission or otherwise of any document required in order to make a drawing
under any such Letter of Credit or of the proceeds thereof; (vii) the
misapplication by the beneficiary of any such Letter of Credit of the proceeds
of any drawing under such Letter of Credit; or (viii) any consequences
arising from causes beyond the control of such Issuing Lender, including any
act or omission by a Government Authority, and none of the above shall affect
or impair, or prevent the vesting of, any of such Issuing Lender’s rights or
powers hereunder.

 

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

 

71

 

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

 

Section 4.                                          CONDITIONS
TO LOANS AND LETTERS OF CREDIT

 

The obligations of Lenders to amend and restate the Original Credit
Agreement on the Restatement Date and to make Loans and to issue Letters of Credit
hereunder are subject to the satisfaction of the following conditions.

 

4.1                               Conditions
to Effectiveness.

 

The effectiveness of this Agreement and the obligations of Lenders to
make the additional Term Loans to be made on the Restatement Date pursuant to
subsection 2.1A, are, in addition to the conditions precedent specified in
subsection 4.2, subject to prior or concurrent satisfaction of the
following conditions:

 

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

 

(i)                                     Either (a) copies
of the Organizational Documents of such Person, certified by the Secretary of
State of its jurisdiction of organization or, if such document is of a type
that may not be so certified, certified by the secretary or similar officer of
the applicable Loan Party or (b) a certificate of the secretary of such
Person certifying that the Organizational Documents of such Person have not
been amended since the Closing Date, together with a good standing certificate
from the Secretary of State of its jurisdiction of organization and, to the
extent generally available and to the extent not required pursuant to subsection 6.13
hereof, a certificate or other evidence of good standing as to payment of any
applicable franchise or similar taxes from the appropriate taxing authority of
such jurisdiction, each dated a recent date prior to the Restatement Date;

 

(ii)                                  Resolutions of
the Governing Body or sole stockholder of such Person approving and authorizing
the execution, delivery and performance of the Loan Documents to which it is a
party, certified as of the Restatement Date by the secretary or similar officer
of such Person as being in full force and effect without modification or
amendment;

 

(iii)                               Signature and
incumbency certificates of the officers of such Person executing the Loan
Documents to which it is a party;

 

72

 

(iv)                              Executed
originals of the Loan Documents to which such Person is a party (except for any
executed original Loan Documents that have been delivered to Administrative
Agent prior to the Restatement Date); and

 

(v)                                 Such other
documents as Administrative Agent may reasonably request.

 

B.                                    Fees.  Company
shall have paid to Administrative Agent, for distribution (as appropriate) to
Administrative Agent and Lenders, the fees payable on the Restatement  Date referred to in subsection 2.3.

 

C.                                    Corporate and Capital Structure; Ownership.

 

(i)                                     Corporate
Structure.  The
corporate organizational structure of Holdings and its Active Subsidiaries
shall be as set forth on Schedule 4.1C annexed hereto.

 

(ii)                                  Capital
Structure and Ownership.  The
capital structure and ownership of Holdings and Company shall be as set forth
on Schedule 4.1C annexed hereto.

 

(iii)                               Management.  The management structure of Holdings and
Company shall be as set forth on Schedule 4.1C annexed hereto.

 

D.                                    Representations and Warranties; Performance of Agreements.  Company shall have delivered to
Administrative Agent an Officer’s Certificate, in form and substance reasonably
satisfactory to Administrative Agent, to the effect that the representations
and warranties in Section 5 are true, correct and complete in all material
respects on and as of the Restatement Date to the same extent as though made on
and as of that date (or, to the extent such representations and warranties
specifically relate to an earlier date, that such representations and
warranties were true, correct and complete in all material respects on and as
of such earlier date) and that Company shall have performed in all material
respects all agreements and satisfied all conditions which this Agreement
provides shall be performed or satisfied by it on or before the Restatement
Date except as otherwise disclosed to and agreed to in writing by
Administrative Agent; provided that, if a representation and warranty,
covenant or condition is qualified as to materiality, the applicable
materiality qualifier set forth above shall be disregarded with respect to such
representation and warranty, covenant or condition for purposes of this
condition.

 

E.                                      Financial Statements; Pro Forma Financial Statements.  On or before the Restatement Date, Lenders
shall have received from Company (i) a pro forma consolidated balance
sheet of Holdings and its Subsidiaries as at the date of the most recently
ended fiscal period for which Company has delivered financial statements in
accordance with subsection 6.1(ii) of the Original Credit Agreement,
prepared in accordance with GAAP and reflecting the transactions contemplated
by the Loan Documents, and (ii) projected financial statements consisting
of consolidated balance sheets and statements of income and cash flow of
Holdings and its Subsidiaries for Fiscal Years 2005 through and including 2010.

 

73

 

F.                                      Opinions of Counsel to Loan Parties.  Lenders shall have received originally
executed copies of one or more favorable written opinions of Proskauer Rose
LLP, counsel for Loan Parties, in form and substance reasonably satisfactory to
Administrative Agent and its counsel, dated as of the Restatement Date and
setting forth substantially the matters in the opinions designated in Exhibit VIII
annexed hereto and as to such other matters as Administrative Agent acting on
behalf of Lenders may reasonably request (this Agreement constituting a written
request by Company to such counsel to deliver such opinions to Lenders).

 

G.                                    Second-Lien Term Loan.  Administrative Agent shall have received
evidence satisfactory to it that the Second-Lien Term Loan has been repaid in
full.

 

H.                                    Termination of Intercreditor Agreement. 
The Intercreditor Agreement shall have been terminated.

 

I.                                         Evidence of Insurance.  Administrative Agent shall have received a
certificate from Company’s insurance broker or other evidence satisfactory to
it that all insurance required to be maintained pursuant to subsection 6.4
is in full force and effect and that Administrative Agent on behalf of Lenders
has been named as additional insured and/or loss payee thereunder to the extent
required under subsection 6.4.

 

J.                                      Necessary Governmental Authorizations and Consents; Expiration of Waiting
Periods, Etc.  Company
shall have obtained all Governmental Authorizations and all consents of
other Persons, in each case that are necessary or advisable in connection with
the transactions contemplated by the Loan Documents and the continued operation
of the business conducted by Company and its Subsidiaries in substantially the
same manner as conducted prior to the Restatement Date.  Each such Governmental Authorization and
consent shall be in full force and effect, except in a case where the failure
to obtain or maintain a Governmental Authorization or consent, either
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect.  No action,
request for stay, petition for review or rehearing, reconsideration, or appeal
with respect to any of the foregoing shall be pending, and the time for any
applicable Government Authority to take action to set aside its consent on its
own motion shall have expired.

 

K.                                    Completion of Proceedings.  All corporate and other proceedings taken or
to be taken in connection with the transactions contemplated hereby and all
documents incidental thereto not previously found acceptable by Administrative
Agent, acting on behalf of Lenders, and its counsel shall be reasonably
satisfactory in form and substance to Administrative Agent and such counsel,
and Administrative Agent and such counsel shall have received all such
counterpart originals or certified copies of such documents as Administrative
Agent may reasonably request.

 

L.                                     Amendments to Closing Date Mortgages and Termination of Mortgages
Securing Second-Lien Term Loan.  Administrative Agent shall have received from
Company and each applicable Subsidiary Guarantor (i) fully executed and
notarized amendments to the Closing Date Mortgages, in proper form for
recording in all appropriate places in all applicable jurisdictions and (ii) with
respect to each Closing Date Mortgaged Property, endorsements to the 

 

74

 

ALTA mortgagee title insurance policies delivered in connection with
the closing of the Original Credit Agreement assuring Administrative Agent that
the applicable Closing Date Mortgages, as amended, create valid and enforceable
First Priority mortgage Liens on the respective Closing Date Mortgaged
Properties encumbered thereby, subject only to a standard survey exception, any
Permitted Encumbrances, other Liens permitted hereunder and any matters of
record relating to such Closing Date Mortgaged Property approved by
Administrative Agent, all of the foregoing in form and substance reasonably
satisfactory to Administrative Agent. 
Administrative Agent shall have received evidence satisfactory to it
that the Mortgages securing the Second-Lien Term Loan shall have been released.

 

4.2                               Conditions
to All Loans.

 

The obligation of each Lender to make its Loans on each Funding Date
are subject to the following further conditions precedent:

 

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

 

B.                                    As of that Funding Date:

 

(i)                                     The
representations and warranties contained herein and in the other Loan Documents
shall be true, correct and complete in all material respects on and as of that
Funding Date to the same extent as though made on and as of that date, except
to the extent such representations and warranties specifically relate to an
earlier date, in which case such representations and warranties shall have been
true, correct and complete in all material respects on and as of such earlier
date; provided, that, if a representation and warranty is qualified as
to materiality, the materiality qualifier set forth above shall be disregarded
with respect to such representation and warranty for purposes of this
condition;

 

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

 

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

 

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

 

C.                                    Administrative Agent shall
have received before that Funding Date, the timely delivery of the most recent
Borrowing Base Certificate (dated as contemplated in subsection 6.1(xvii))
required to be delivered hereunder.

 

75

 

4.3                               Conditions
to Letters of Credit.

 

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

 

A.                                    On or before the date of
issuance of the initial Letter of Credit pursuant to this Agreement, the
initial Loans shall have been made.

 

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

 

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

 

D.                                    Administrative Agent shall
have received the timely delivery of the most recent Borrowing Base Certificate
(dated as contemplated in subsection 6.1(xvii)) required to be delivered
hereunder.

 

Section 5.                                          COMPANY’S
REPRESENTATIONS AND WARRANTIES

 

In order to induce Lenders to enter into this Agreement and to make the
Loans, to induce Issuing Lenders to issue Letters of Credit and to induce
Revolving Lenders to purchase participations therein, Company and Holdings
represent and warrant to each Lender:

 

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

 

A.                                    Organization and Powers.  Each of Holdings and its Subsidiaries is a
corporation, partnership, trust or limited liability company duly organized,
validly existing and in good standing under the laws of its jurisdiction of
organization as specified in Schedule 5.1 annexed hereto.  Each of Holdings and its Subsidiaries has all
requisite power and authority to own and operate its properties, to carry on
its business as now conducted and as proposed to be conducted, to enter into
the Loan Documents and the Related Documents to which it is a party and to
carry out the transactions contemplated thereby.

 

B.                                    Qualification and Good Standing.  Each of Holdings and its Subsidiaries is
qualified to do business and in good standing in every jurisdiction where its
assets are located and wherever necessary to carry out its business and
operations, except in jurisdictions where the 

 

76

 

failure to be so qualified or in good standing has not had and could
not reasonably be expected to result in a Material Adverse Effect.

 

C.                                    Subsidiaries.  All of the
Subsidiaries of Holdings and their jurisdictions of organization are identified
in Schedule 5.1 annexed hereto, as said Schedule 5.1
may be supplemented from time to time pursuant to the provisions of subsection 6.1(xv).  The Capital Stock of each of the Subsidiaries
of Holdings identified in Schedule 5.1 annexed hereto (as so
supplemented) is duly authorized, validly issued, fully paid and
nonassessable.  Each of the Subsidiaries
of Holdings identified in Schedule 5.1 annexed hereto (as so
supplemented) is a corporation , partnership, trust or limited liability
company duly organized, validly existing and in good standing under the laws of
its respective jurisdiction of organization set forth therein, has all
requisite power and authority to own and operate its properties and to carry on
its business as now conducted and as proposed to be conducted, and is qualified
to do business and in good standing in every jurisdiction where its assets are
located and wherever necessary to carry out its business and operations, in
each case except where failure to be so qualified or in good standing or a lack
of such power and authority has not had and could not reasonably be expected to
result in a Material Adverse Effect.  As
of the Restatement Date, Schedule 5.1 annexed hereto (as so
supplemented) correctly sets forth the ownership interest of Holdings and each
of its Subsidiaries in each of the Subsidiaries of Holdings identified therein.

 

5.2                               Authorization
of Borrowing, etc.

 

A.                                    Authorization of Borrowing.  The execution, delivery and performance of
the Loan Documents and the Related Agreements have been duly authorized by all
necessary action on the part of each Loan Party that is a party thereto.

 

B.                                    No Conflict.  The
execution, delivery and performance by Loan Parties of the Loan Documents and
the Related Agreements to which they are parties and the consummation of the transactions
contemplated by the Loan Documents and the Related Agreements do not and will
not (i) violate any provision of any law or any governmental rule or
regulation applicable to Holdings or any of its Subsidiaries, the
Organizational Documents of Holdings or any of its Subsidiaries or any order,
judgment or decree of any court or other Government Authority binding on
Holdings or any of its Subsidiaries, (ii) conflict with, result in a
breach of or constitute (with due notice or lapse of time or both) a default
under any Contractual Obligation of Holdings or any of its Subsidiaries, (iii) result
in or require the creation or imposition of any Lien upon any of the properties
or assets of Holdings or any of its Subsidiaries (other than any Liens created
under any of the Loan Documents in favor of Administrative Agent on behalf of
Lenders), or (iv) require any approval of stockholders or any approval or
consent of any Person under any Contractual Obligation of Holdings or any of
its Subsidiaries, except as set forth on Schedule 5.2B, and except
for such approvals or consents which will be obtained on or before the
Restatement Date.

 

77

 

C.                                    Governmental Consents.  The execution, delivery and performance by
Loan Parties of the Loan Documents and the Related Agreements to which they are
parties and the consummation of the transactions contemplated by the Loan
Documents and the Related Agreements do not and will not require any
Governmental Authorization, except such as have been obtained on or before the
Restatement Date.

 

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

 

5.3                               Financial
Condition.

 

Company has heretofore delivered to Lenders, at Lenders’ request, the
financial statements, reports and information described in subsection 4.1E.  All such statements and reports other than
pro forma financial statements were prepared in conformity with GAAP and fairly
present, in all material respects, the financial position (on a consolidated
and, where applicable, consolidating basis) of the entities described in such
financial statements as at the respective dates thereof and the results of
operations and cash flows (on a consolidated and, where applicable,
consolidating basis) of the entities described therein for each of the periods
then ended, subject, in the case of any such unaudited financial statements or
reports, to changes resulting from audit and normal year-end adjustments and
the absence of notes thereto.  Neither
Company nor any of its Subsidiaries has any Contingent Obligation, contingent
liability or liability for taxes, long-term lease or unusual forward or
long-term commitment (other than any obligations arising under the Loan
Documents) that as of any Funding Date subsequent to the Closing Date, is not
reflected in the most recent financial statements delivered to Lenders pursuant
to subsection 6.1 or the notes thereto and that, in any such case, is
material in relation to the business, operations, liabilities, properties,
assets or financial condition of Company and its Subsidiaries, taken as a
whole.

 

5.4                               No
Material Adverse Change.

 

Since January 1, 2005, no event or change has occurred either
individually or in the aggregate that has resulted in or would reasonably be
expected to result in a Material Adverse Effect.

 

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

 

A.                                    Title to Properties; Liens.  Company and its Subsidiaries have (i) good
title to (in the case of fee interests in real property), (ii) valid
leasehold interests in (in the case of leasehold interests in real or personal
property), or (iii) good title to (in the case of all other personal
property), all of their respective material properties and assets reflected in
the financial statements referred to in subsection 5.3 or in the most
recent financial statements delivered pursuant to subsection 6.1, except
for the Merida Facility, which is held in trust for the benefit of 

 

78

 

Creaciones Textile de Merida, S.A. de C.V., and in each case except for
assets disposed of since the date of such financial statements in the ordinary
course of business or as otherwise permitted under subsection 7.7 and
except for any deficiencies of title which could not reasonably be expected to
result in a Material Adverse Effect. 
Except as permitted by this Agreement, all such properties and assets
are free and clear of Liens.

 

B.                                    Real Property.  As of the
Restatement Date, Schedule 5.5B annexed hereto contains a true,
accurate and complete list of (i) all fee interests in any Real Property
Assets and (ii) all real property leased by Company and its
Subsidiaries.  Except as specified in Schedule 5.5B
annexed hereto, each agreement listed in clause (ii) of the immediately
preceding sentence is in full force and effect and Company does not have
knowledge of any default that has occurred and is continuing thereunder, except
for any default which could not reasonably be expected to result in a Material
Adverse Effect.

 

C.                                    Intellectual Property.  All trademark applications and registrations
that are owned by Company or any of its Subsidiaries on the Restatement Date
are described on Schedule 5.5C(i) annexed hereto.  As of the Restatement Date, Company and its
Subsidiaries own or have the right to use, all Intellectual Property used in
the conduct of their business, except as set forth on Schedule 5.5C(ii) and
except where the failure to own or have such right to use in the aggregate
could not reasonably be expected to result in a Material Adverse Effect.  To the Knowledge of Company no claim has been
asserted and is pending by any Person challenging or questioning the use of any
such Intellectual Property or the validity or effectiveness of any such
Intellectual Property, nor does Company know of any valid basis for any such claim,
except as set forth on Schedule 5.5C(ii) and except for such
claims that in the aggregate could not reasonably be expected to result in a
Material Adverse Effect.  To the
Knowledge of Company the use of such Intellectual Property by Company and its
Subsidiaries does not infringe on the rights of any Person, except as set forth
on Schedule 5.5C(ii) and except for such claims and
infringements that, in the aggregate, could not reasonably be expected to
result in a Material Adverse Effect.

 

5.6                               Litigation;
Adverse Facts.

 

Schedule 5.6 annexed hereto sets forth
all material Proceedings (whether or not purportedly on behalf of Company or
any of its Subsidiaries) at law or in equity, or before or by any court or
other Government Authority (including any Environmental Claims) that are
pending or, to the knowledge of Company, threatened against or affecting
Company or any of its Subsidiaries or any property of Company or any of its
Subsidiaries.  Company believes that none
of the Proceedings listed on Schedule 5.6, individually or in the
aggregate, could reasonably be expected to result in a Material Adverse
Effect.  Neither Company nor any of its
Subsidiaries (i) is in violation of any applicable laws (including
Environmental Laws) or regulations that, individually or in the aggregate,
could reasonably be expected to result in a Material Adverse Effect, or (ii) is
subject to or in default with respect to any final judgments, writs,
injunctions, decrees, rules or regulations of any court or other
Government Authority that, individually or in the aggregate, could reasonably
be expected to result in a Material Adverse Effect.

 

79

 

5.7                               Payment
of Taxes.

 

Except to the extent permitted by subsection 6.3, all material tax
returns and reports of Holdings and its Subsidiaries required to be filed
(including any applicable extensions) by any of them have been timely filed,
and all taxes shown on such tax returns to be due and payable and all material
assessments, fees and other governmental charges upon Holdings and its
Subsidiaries and upon their respective properties, assets, income, businesses
and franchises that are due and payable have been paid when due and
payable.  To the Knowledge of Company
there is no proposed tax assessment against Holdings or any of its Subsidiaries
that is not being actively contested by Holdings or such Subsidiary in good
faith and by appropriate proceedings; provided that such reserves or
other appropriate provisions, if any, as shall be required in conformity with
GAAP shall have been made or provided therefor.

 

5.8                               Performance
of Agreements.

 

Neither Company nor any of its Subsidiaries
is in default in the performance, observance or fulfillment of any of the
obligations, covenants or conditions contained in any of its Contractual
Obligations, and no condition exists that, with the giving of notice or the
lapse of time or both, would constitute such a default, except where the
consequences, direct or indirect, of such default or defaults, if any, could
not reasonably be expected to result in a Material Adverse Effect.

 

5.9                               Governmental
Regulation.

 

Neither Company nor any of its Subsidiaries is subject to regulation
under the Public Utility Holding Company Act of 1935, the Federal Power Act,
the Interstate Commerce Act or the Investment Company Act of 1940 or under any
other federal or state statute or regulation which may (i) limit its
ability to incur Indebtedness or (ii) otherwise render all or any portion
of the Obligations unenforceable except any applicable bankruptcy, insolvency,
reorganization, fraudulent conveyance, moratorium or other similar laws or as
otherwise disclosed herein.

 

5.10                        Securities
Activities.

 

A.                                    Neither Company nor any of
its Subsidiaries is engaged principally, or as one of its important activities,
in the business of extending credit for the purpose of purchasing or carrying
any Margin Stock.

 

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

 

80

 

5.11                        Employee
Benefit Plans.

 

A.                                    Except as could not
reasonably be expected to result in a Material Adverse Effect, Company, each of
its Subsidiaries and each of their respective ERISA Affiliates are in
compliance with all applicable provisions and requirements of ERISA and the
regulations and published interpretations thereunder with respect to each
Employee Benefit Plan (other than a Multiemployer Plan), and have performed all
their obligations under each Employee Benefit Plan.

 

B.                                    No ERISA Events, or similar
events in respect of any Foreign Plans, has occurred or is reasonably expected
to occur that individually or in the aggregate would reasonably be expected to
result in a material liability to Company or any of its Subsidiaries.

 

C.                                    As of the date hereof,
except as could not reasonably be expected to result in a Material Adverse
Effect, Company and its Subsidiaries have made full payment when due of all
required contributions to any Foreign Plan.

 

5.12                        Certain
Fees.

 

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

 

5.13                        Environmental
Protection.

 

Except as set forth in Schedule 5.13 annexed hereto:

 

(i)                                     neither Company
nor any of its Subsidiaries nor any of their respective Facilities or
operations are subject to any outstanding written order, consent decree or
settlement agreement with any Person relating to (a) any Environmental Law
or (b) any Environmental Claim;

 

(ii)                                  neither Company
nor any of its Subsidiaries has received any letter or other written
request for information under Section 104 of the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. § 9604)
or any comparable state law;

 

(iii)                               there are and,
to the Knowledge of Company, have been no conditions, occurrences, or Releases
that would reasonably be expected to form the basis of an Environmental Claim
against Company or any of its Subsidiaries;

 

81

 

(iv)                              Commencing
at least ten years prior to the Closing Date, Company has maintained procedures
for (a) tracking changes in applicable Environmental Laws and modifying
operations to comply with new requirements thereunder, (b) providing
hazard communication and other safety training to employees to comply with
applicable Environmental Laws and updating such training as necessary, and (c) performing
regular internal compliance audits of each Facility and ensuring correction of
any incidents of non-compliance detected by means of such audits; and

 

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

 

5.14                        Employee
Matters.

 

Except as set forth in Schedule 5.14, there is no strike or
work stoppage in existence or to the Knowledge of Company threatened
involving Company or any of its Subsidiaries that could reasonably be expected
to result in a Material Adverse Effect.

 

5.15                        Solvency.

 

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

 

5.16                        Matters
Relating to Collateral.

 

A.                                    Governmental Authorizations.  No authorization, approval or other action
by, and no notice to or filing with, any United States Government Authority is
required for either (i) the pledge or grant by any Loan Party of the Liens
purported to be created in favor of Administrative Agent pursuant to any of the
Collateral Documents or (ii) the exercise by Administrative Agent of any
rights or remedies in respect of any Collateral (whether specifically granted
or created pursuant to any of the Collateral Documents or created or provided
for by applicable law), except for filings or recordings contemplated by the
Collateral Documents and except as may be required, in connection with the
disposition of any Pledged Collateral, by laws generally affecting the offering
and sale of securities.

 

B.                                    Absence of Third-Party Filings.  Except for filings naming Administrative
Agent as secured party and the filings set forth on Schedule 5.16B
annexed hereto and other Liens permitted hereunder, as of the Restatement Date,
(i) no effective UCC financing statement, fixture filing or other
instrument similar in effect covering all or any part of the Collateral is on
file in any filing or recording office and (ii) no effective filing
covering all or any part of the IP Collateral is on file in any IP Filing
Office.

 

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

 

82

 

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

 

5.17                        Disclosure.

 

No representation or warranty of Holdings or any of its Subsidiaries
contained in the Confidential Information Memorandum, in any Loan Document,
Related Agreement or in any other document, certificate or written statement
furnished to Lenders by or on behalf of Holdings or any of its Subsidiaries for
use in connection with the transactions contemplated by this Agreement contains
any untrue statement of a material fact or omits to state a material fact (to
the Knowledge of Company, in the case of any document not furnished by it)
necessary in order to make the statements collectively contained herein and
therein not misleading in light of the circumstances in which the same were
made.  Any projections and pro forma
financial information contained in such materials are based upon good faith
estimates and assumptions believed by Company to be reasonable at the time
made, it being recognized by Lenders that such projections as to future events
are not to be viewed as facts and that actual results during the period or
periods covered by any such projections may differ from the projected
results.  There are no facts known (or
which should upon the reasonable exercise of diligence be known) to Company (other
than matters of a general economic nature) that, individually or in the
aggregate, could reasonably be expected to result in a Material Adverse Effect
and that have not been disclosed herein or in such other documents,
certificates and statements furnished to Lenders for use in connection with the
transactions contemplated hereby.

 

5.18                        Delivery
of Related Agreements.

 

Company has delivered to
Lenders complete and correct copies of each Related Agreement and of all
exhibits and schedules thereto.

 

5.19                        Foreign
Assets Control Regulations, Etc.

 

To the Knowledge of Company, neither the making of the Loans to, or
issuance of a Letter of Credit on behalf of, Company nor its use of the
proceeds thereof will violate the Trading with the Enemy Act, as amended, or
any of the foreign assets control regulations of the United States Treasury
Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling
legislation or executive order relating thereto.  Without limiting the foregoing, to the
Knowledge of Company, neither Company nor any of its Subsidiaries or Affiliates
(a) is or will become a Person whose property or interests in property are
blocked pursuant to Section 1 of Executive Order 13224 of September 23,
2001 Blocking Property and Prohibiting Transactions With Persons Who Commit,
Threaten to Commit, or Support Terrorism (66 Fed.  Reg. 
49079 (2001)) or (b) engages or will engage in any dealings or
transactions, or be otherwise associated, with any such Person.  To the Knowledge of Company, Company and its
Subsidiaries and Affiliates are in compliance, in all material respects, with
the Uniting And Strengthening America By Providing Appropriate Tools Required
To Intercept And Obstruct Terrorism (USA Patriot Act of 2001).

 

83

 

Section 6.                                          COMPANY’S
AFFIRMATIVE COVENANTS

 

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

 

6.1                               Financial
Statements and Other Reports.

 

Company will maintain, and cause each of its Subsidiaries to maintain,
a system of accounting established and administered in accordance with sound
business practices to permit preparation of financial statements in conformity
with GAAP.  Company will deliver to
Administrative Agent and Lenders:

 

(i)                                     Events
of Default, etc.:  promptly upon any
Key Officer of Company obtaining knowledge (a) of any condition or event
that constitutes an Event of Default , or becoming aware that any Lender has
given any notice (other than to Administrative Agent) or taken any other action
with respect to a claimed Event of Default, (b) that any Person has given
any notice to Company or any of its Subsidiaries or taken any other action with
respect to a claimed default or event or condition of the type referred to in
subsection 8.2 or (c) of the occurrence of any event or change that
has caused or evidences, either in any case or in the aggregate, a Material
Adverse Effect, an Officer’s Certificate specifying the nature and period of
existence of such condition, event or change, or specifying the notice given or
action taken by any such Person and the nature of such claimed Event of
Default, default, event or condition, and what action Company has taken, is
taking and proposes to take with respect thereto;

 

(ii)                                  Quarterly
Financials:  as soon as available and
in any event within 45 days after the end of each Fiscal Quarter, (a) the
consolidated balance sheets of (1) Company and its Subsidiaries and (2) Holdings
and its Subsidiaries, in each case as at the end of such Fiscal Quarter and the
related consolidated statements of income, stockholders’ equity and cash flows
of Company and its Subsidiaries or Holdings and its Subsidiaries, as the case
may be, for such Fiscal Quarter and for the period from the beginning of the
then current Fiscal Year to the end of such Fiscal Quarter, setting forth in
each case in comparative form the corresponding figures for the corresponding periods
of the previous Fiscal Year and the corresponding figures from the Financial
Plan for the current Fiscal Year, to the extent prepared for such Fiscal
Quarter, all in reasonable detail and (x) in the case of the first three Fiscal
Quarters of each Fiscal Year, certified by the chief financial officer of
Company or Holdings, as the case may be, that they fairly present, in all
material respects, the consolidated financial condition of Company and its
Subsidiaries or Holdings and its Subsidiaries, as the case may be, as at the
dates indicated and the results of their operations and their cash flows for
the periods indicated, subject to changes resulting from audit and normal
year-end adjustments and the absence of footnotes and (y) in the case of the
fourth Fiscal Quarter of each Fiscal Year, subject to changes

 

84

 

resulting from audit and normal year-end adjustments and the absence of
footnotes and (b) a narrative report in the form prepared by Company for
its internal use describing the operations of Holdings and its Subsidiaries for
such Fiscal Quarter and for the period from the beginning of the then current
Fiscal Year to the end of such Fiscal Quarter; provided that prior to
the IPO, the Governing Body of Company (or the audit committee thereof) shall
monitor the preparation of the financial statements required to be delivered on
a quarterly basis pursuant to this subsection 6.1(ii) to the extent
it deems reasonably appropriate, including engaging outside consultants to work
directly with the Officers of Company in connection with the preparation of
such financial statements; provided  further that for all periods
ending on or prior to August 6, 2005, Company shall not be required to
deliver the financial information described in clause (a) above with
respect to Company and its Subsidiaries;

 

(iii)                               Year-End
Financials:  as soon as available and
in any event within 90 days after the end of each Fiscal Year, (a) the
consolidated and consolidating balance sheets of (1) Company and its
Subsidiaries and (2) Holdings and its Subsidiaries, in each case as at the
end of such Fiscal Year and the related consolidated and consolidating
statements of income, stockholders’ equity and cash flows of Company and its
Subsidiaries or Holdings and its Subsidiaries, as the case may be, for such
Fiscal Year, setting forth in each case in comparative form the corresponding
figures for the previous Fiscal Year and the corresponding figures from the
Financial Plan for the Fiscal Year covered by such financial statements, all in
reasonable detail and certified by the chief financial officer of Company or
Holdings, as the case may be, that they fairly present, in all material
respects, the financial condition of Company and its Subsidiaries or Holdings
and its Subsidiaries, as the case may be, as at the dates indicated and the
results of their operations and their cash flows for the periods indicated, (b) a
narrative report describing the operations of Holdings and its Subsidiaries for
such Fiscal Year, and (c) in the case of such consolidated financial
statements, a report thereon of Company’s independent certified public
accountants of recognized national standing selected by Company and reasonably
satisfactory to Administrative Agent, which report shall be unqualified, shall
express no doubts, assumptions or qualifications concerning the ability of
Company and its Subsidiaries or Holdings and its Subsidiaries, as the case may
be, to continue as a going concern, and shall state that such consolidated
financial statements fairly present, in all material respects, the consolidated
financial position of Company and its Subsidiaries or Holdings and its
Subsidiaries, as the case may be, as at the dates indicated and the results of
their operations and their cash flows for the periods indicated in conformity
with GAAP applied on a basis consistent with prior years (except as otherwise
disclosed in such financial statements) and that the examination by such
accountants in connection with such consolidated financial statements has been
made in accordance with GAAP;

 

85

 

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

 

(v)                                 Reconciliation
Statements:  if, as a result of any
change in accounting principles and policies from those used in the preparation
of the audited financial statements referred to in subsection 5.3, the
consolidated financial statements of Company and its Subsidiaries or Holdings
and its Subsidiaries, as the case may be, delivered pursuant to subdivisions
(ii), (iii) or (xii) of this subsection 6.1 will differ in any
material respect from the consolidated financial statements that would have
been delivered pursuant to such subdivisions had no such change in accounting
principles and policies been made, then (a) together with the first
delivery of financial statements pursuant to subdivision (ii), (iii) or
(xii) of this subsection 6.1 following such change, consolidated financial
statements of Company and its Subsidiaries or Holdings and its Subsidiaries, as
the case may be, for (y) the current Fiscal Year to the effective date of
such change and (z) the two full Fiscal Years immediately preceding the
Fiscal Year in which such change is made, in each case prepared on a pro forma
basis as if such change had been in effect during such periods, and (b) together
with each delivery of financial statements pursuant to subdivision (ii), (iii) or
(xii) of this subsection 6.1 following such change, if required pursuant
to subsection 1.2, a written statement of the chief accounting officer or
chief financial officer of Company or Holdings, as the case may be, setting
forth the differences (including any differences that would affect any
calculations relating to the financial covenants set forth in subsection 7.6)
which would have resulted if such financial statements had been prepared
without giving effect to such change;

 

86

 

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

 

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

 

(viii)                        SEC
Filings and Press Releases:  promptly
upon their becoming available, copies of (a) all financial statements,
reports, notices and proxy statements sent or made available generally by
Holdings to its security holders or by any Subsidiary of Holdings to its
security holders other than Holdings or another Subsidiary of Holdings, (b) all
regular and periodic reports and all registration statements (other than on Form S-8
or a similar form) and prospectuses, if any, filed by Holdings or any of its
Subsidiaries with any securities exchange or with the Securities and Exchange
Commission or any national securities exchange, and (c) all press releases
and other statements made available generally by Holdings or any of its
Subsidiaries to the public concerning material developments in the business of
Holdings or any of its Subsidiaries; provided that any items required to
be delivered under this subsection 6.1(viii) shall be deemed to be so
delivered on the date such item becomes publicly available for review on EDGAR;

 

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

 

87

 

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

 

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

 

written notice thereof together with such
other information as may be reasonably available to Company or Holdings, as the
case may be, to enable Lenders and their counsel to evaluate such matters; and (b) within
20 days after the end of each Fiscal Quarter, a schedule of all
Proceedings involving an alleged liability of, or claims against or affecting,
Holdings or any of its Subsidiaries, as the case may be, equal to or greater
than $500,000, and promptly after request by Administrative Agent such other
information as may be reasonably requested by Administrative Agent to enable
Administrative Agent and its counsel to evaluate any of such Proceedings;

 

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

 

(xi)                                ERISA
Notices:  with reasonable promptness,
copies of (a) all notices received by Company, any of its Subsidiaries or
any of their respective ERISA Affiliates from a Multiemployer Plan sponsor
concerning an ERISA Event that could reasonably be expected to result in a
material liability to Company or any of its Subsidiaries; and (b) copies
of such other documents or governmental reports or filings relating to any
Employee Benefit Plan (including a Multiemployer Plan, if such documents,
reports or filings have been received by Company or any Subsidiary of Company)
as Administrative Agent shall reasonably request;

 

(xii)                             Financial
Plans:  as soon as practicable and in
any event within 30 days following the beginning of each Fiscal Year, a
consolidated plan and financial forecast for such Fiscal Year (the “Financial Plan” for such Fiscal Year), including
(a) a forecasted consolidated balance sheet and forecasted consolidated
statements of income and cash flows of Company and its Subsidiaries for such
Fiscal Year, together with a pro  forma Compliance Certificate for
such Fiscal Year and an explanation of the assumptions on which such forecasts
are based and (b) forecasted consolidated statements of income and cash
flows of Company and its Subsidiaries for each Fiscal Month of such Fiscal
Year, together with an explanation of the assumptions on which such forecasts
are based;

 

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

 

88

 

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

 

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

 

(xvi)                         Material
Contracts:  prior to the consummation
of the IPO, promptly, and in any event within ten Business Days after any Material
Contract of Company or any of its Subsidiaries is terminated or amended in a
manner that is materially adverse to Company or such Subsidiary, as the case
may be, or any new Material Contract is entered into, a written statement
describing such event with copies of such material amendments or new contracts,
and an explanation of any actions being taken with respect thereto;

 

(xvii)                      Borrowing
Base Certificates:  as soon as
available and in any event within 20 days after the last Business Day of each Fiscal
Month ending after the Closing Date, a Borrowing Base Certificate dated as of
the last Business Day of such Fiscal Month, together with any additional
schedules and other information as Administrative Agent may reasonably request.  In addition to such monthly Borrowing Base
Certificates, Company may from time to time deliver to Administrative Agent and
Lenders on any Business Day after the last Business Day of each Fiscal Month an
updated Borrowing Base Certificate dated as of such Business Day, together with
any additional schedules and other information as Administrative Agent may
reasonably request, and the most recent Borrowing Base Certificate described in
this clause (xvii) that is delivered to Administrative Agent shall be used in
calculating the Borrowing Base as of any date of determination;

 

(xviii)                   Related
Agreements:  promptly upon execution,
receipt or distribution thereof, copies of all amendments and waivers of any
Related Agreement and notices relating to the Representations and Warranties
Insurance Policy; and

 

(xix)                           Other
Information:  with reasonable
promptness, such other information and data with respect to Holdings or any of
its Subsidiaries as from time to time may be reasonably requested by any Lender
through Administrative Agent.

 

6.2                               Existence,
etc.

 

Except as permitted under subsection 7.7, Company and Holdings
each will, and will cause each of its Subsidiaries to, at all times preserve
and keep in full force and effect its existence in the jurisdiction of
organization specified on Schedule 5.1 and all rights and
franchises material to its business; provided, however that
neither Holdings nor any of its Subsidiaries shall be required to preserve any
such existence (other than Holdings and Company) right or franchise if the
Governing Body of Holdings or such Subsidiary shall determine that the

 

89

 

preservation thereof is no longer desirable in the conduct of the
business of Holdings and its Subsidiaries taken as a whole and that the loss
thereof is not disadvantageous in any material respect to Holdings and its
Subsidiaries taken as a whole or Lenders.

 

6.3                               Payment
of Taxes and Claims; Tax.

 

A.                                    Company and Holdings each
will, and will cause each of its Subsidiaries to, pay all taxes, assessments
and other governmental charges imposed upon it or any of its properties or
assets or in respect of any of its income, businesses or franchises before any
penalty accrues thereon, and all claims (including claims for labor, services,
materials and supplies) for sums that have become due and payable and that by
law have or may become a Lien upon any of its properties or assets, prior to
the time when any penalty or fine shall be incurred with respect thereto; provided
that no such tax, assessment, charge or claim need be paid if it is being
contested in good faith by appropriate proceedings promptly instituted and
diligently conducted, so long as (i) such reserve or other appropriate
provision, if any, as shall be required in conformity with GAAP shall have been
made therefor and (ii) in the case of a tax, assessment, charge or claim
which has or may become a Lien against any of the Collateral, such proceedings
conclusively operate to stay the sale of any portion of the Collateral to
satisfy such charge or claim.

 

B.                                    Neither Company
nor Holdings will, nor will either permit any of its Subsidiaries to, file or
consent to the filing of any consolidated income tax return with any Person
(other than Holdings or any of its Subsidiaries).

 

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

 

A.                                    Maintenance of Properties.  Company will, and will cause each of its
Subsidiaries to, in all material respects maintain or cause to be maintained in
good repair, working order and condition, ordinary wear and tear excepted, all
material properties used or useful in the business of Company and its
Subsidiaries (including all Intellectual Property) and from time to time will
make or cause to be made all appropriate repairs, renewals and replacements
thereof.

 

B.                                    Insurance.  Company will
maintain or cause to be maintained, with financially sound and reputable
insurers, such public liability insurance, third party property damage
insurance, business interruption insurance and casualty insurance with respect
to liabilities, losses or damage in respect of the assets, properties and
businesses of Company and its Subsidiaries as may customarily be carried or
maintained under similar circumstances by corporations of established reputation
engaged in similar businesses, in each case in such amounts (giving effect to
self-insurance), with such deductibles, covering such risks and otherwise on
such terms and conditions as shall be customary for corporations similarly
situated in the industry.  Without
limiting the generality of the foregoing, Company will maintain or cause to be
maintained (i) flood insurance with respect to each Flood Hazard Property
that is located in a community that participates in the National Flood
Insurance Program, in each case in compliance with any applicable regulations
of the Board of Governors of the Federal Reserve

 

90

 

System, and (ii) “all risk” or “special coverage” casualty
insurance on the Collateral (to the extent applicable) under such policies of
insurance, with such insurance companies, in such amounts, with such
deductibles, and covering such risks as are at all times reasonably
satisfactory to Administrative Agent in its commercially reasonable judgment.
Each such policy of insurance shall (a) name Administrative Agent for the
benefit of Lenders as an additional insured thereunder as its interests may
appear and (b) in the case of each business interruption and casualty
insurance policy, contain a loss payable clause or endorsement, reasonably
satisfactory in form and substance to Administrative Agent, that names
Administrative Agent for the benefit of Lenders as the loss payee thereunder
and provides (if commercially generally available at usual and customary rates)
for at least 30 days prior written notice to Administrative Agent of any
modification or cancellation of such policy (it being understood that so long
as no Event of Default shall have occurred and be continuing Company and its
Subsidiaries have the right to negotiate claims under such policies in the
first instance), in each case subject to Section 6.4C.

 

Company will ensure that the Representations and Warranties Insurance
Policy remains in full force and effect in accordance with its terms and will
pursue all material claims under the Representations and Warranties Insurance
Policy by appropriate proceedings promptly instituted and diligently
conducted.  Company will not agree to any
material amendment to, or waive any of its material rights under, or otherwise
change any material terms of, the Representations and Warranties Insurance
Policy as in effect on the Closing Date in a manner adverse to Holdings or any
of its Subsidiaries or to Lenders without the prior written consent of
Administrative Agent.

 

C.                                    Application of Net Insurance/Condemnation Proceeds.

 

(i)                                     Business
Interruption Insurance.  No later
than the second Business Day following receipt by Company or any of its
Domestic Subsidiaries of any business interruption insurance proceeds constituting
Net Insurance/Condemnation Proceeds, (a) so long as no Event of Default
shall have occurred and be continuing, Company or such Domestic Subsidiary may
retain and apply such Net Insurance/Condemnation Proceeds for working capital
or other general corporate purposes, and (b) if an Event of Default shall
have occurred and be continuing, Company shall apply an amount equal to such
Net Insurance/Condemnation Proceeds to prepay the Loans as provided in
subsections 2.4B and 2.4D.

 

(ii)                                  Representations
and Warranties Insurance.  No later
than the second Business Day following receipt by any Person of any proceeds of
the Representations and Warranties Insurance Policy constituting Net
Insurance/Condemnation Proceeds, Company shall either (a) prepay the Loans
in an aggregate amount equal to such Net Insurance/Condemnation Proceeds or (b) so
long as no Event of Default shall have occurred and be continuing, to the
extent that such proceeds are in respect of loss or damage to tangible real or
personal property, deliver to Administrative Agent an Officer’s Certificate
setting forth (1) that portion of such proceeds that Company or such
Subsidiary intends to apply to replace or repair the property in respect of
which such proceeds were received, within 360 days of such date of receipt and (2) such
other information with respect to such application as Administrative Agent may
reasonably

 

91

 

request, and Company shall, or shall cause one or more of its
Subsidiaries to, promptly and diligently apply such portion for such purposes; provided,
however, that pending such application, such portion of the Net
Insurance/Condemnation Proceeds shall be applied to prepay outstanding
Revolving Loans (without a reduction in the Revolving Loan Commitment Amount)
to the full extent thereof; provided, further, that if at any
time (A) an Event of Default shall have occurred and be continuing or (B) Company
shall not have committed such Net Insurance/Condemnation Proceeds for application
as provided in clause (b)(1) above, Administrative Agent, if it holds such
Net Insurance/Condemnation Proceeds, is hereby authorized by Company to, and
Company, if it or one of its Subsidiaries holds such Net Insurance/Condemnation
Proceeds, shall, apply such Net Insurance/Condemnation Proceeds to prepay the
Loans as provided in subsection 2.4B and subsection 2.4D.

 

(iii)                               Other
Net Insurance/Condemnation Proceeds. 
No later than the second Business Day following receipt by Company or
any of its Domestic Subsidiaries or by Administrative Agent as loss payee of
any Net Insurance/Condemnation Proceeds other than from business interruption
insurance or the Representations and Warranties Insurance Policy, Company shall
either (a) prepay the Loans in an aggregate amount equal to such Net
Insurance/Condemnation Proceeds or (b) so long as no Event of Default
shall have occurred and be continuing, deliver to Administrative Agent an
Officer’s Certificate setting forth (1) that portion of such Net
Insurance/Condemnation Proceeds that Company or such Subsidiary intends to
enter into a binding commitment to reinvest in equipment or other productive
assets of the general type used in the business of Company and its
Subsidiaries, which may include assets of the type in respect of which such Net
Insurance/Condemnation Proceeds were received, within 360 days of such date of
receipt and (2) the proposed use of such portion of the Net
Insurance/Condemnation Proceeds and such other information with respect to such
reinvestment as Administrative Agent may reasonably request, and Company shall,
or shall cause one or more of its Subsidiaries to, promptly and diligently
apply such portion to such reinvestment purposes; provided, however,
that pending such reinvestment, such portion of the Net Insurance/Condemnation
Proceeds shall be applied to prepay outstanding Revolving Loans (without a
reduction in the Revolving Loan Commitment Amount) to the full extent thereof; provided,
further, that if at any time (A) an Event of Default shall have
occurred and be continuing or (B) Company shall not have committed such
Net Insurance/Condemnation Proceeds for application as provided in clause (b)(1) above,
Administrative Agent, if it holds such Net Insurance/Condemnation Proceeds, is
hereby authorized by Company to, and Company, if it or one of its Subsidiaries
holds such Net Insurance/Condemnation Proceeds, shall, apply such Net
Insurance/Condemnation Proceeds to prepay the Loans as provided in subsection 2.4B
and subsection 2.4D.

 

92

 

6.5                               Inspection
Rights; Lender Meeting.

 

A.                                    Inspection Rights.  Company and
Holdings each shall, and shall cause each of its Subsidiaries to, permit any
authorized representatives designated by Administrative Agent to visit and
inspect any of the properties of Holdings or of any of its Subsidiaries, to
inspect, copy and take extracts from its and their financial and accounting
records, and to discuss its and their affairs, finances and accounts with its
and their officers and independent public accountants (provided that Company or
Holdings may, if it so chooses, be present at or participate in any such
discussion), all upon reasonable notice and at such reasonable times during
normal business hours and no more than once per Fiscal Quarter or at any time
or from time to time following the occurrence and during the continuation of an
Event of Default.

 

B.                                    Lender Meeting.  Company will,
upon the request of Administrative Agent or Requisite Lenders, participate in a
meeting of Administrative Agent and Lenders once during each Fiscal Year to be
held at Company’s principal offices (or at such other location as may be agreed
to by Company and Administrative Agent) at such time as may be agreed to by
Company and Administrative Agent.

 

6.6                               Compliance
with Laws, etc.

 

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

 

6.7                               Environmental
Matters.

 

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

 

(i)                                     Environmental
Audits and Reports.  As soon as
practicable following receipt thereof, copies of all material environmental
audits, investigations, analyses and reports of any kind or character, whether
prepared by personnel of Holdings or any of its Subsidiaries or by independent
consultants, Government Authority or any other Persons, with respect to (a) Environmental
Claims and (b) any Release required to be reported under any Environmental
Law to any Government Authority.

 

(ii)                                  Notice
of Certain Releases, Remedial Actions, Etc. 
Promptly upon becoming aware of the occurrence thereof, written notice
describing in reasonable detail (a) any Release required to be reported to
any Government Authority under any applicable Environmental Laws and (b) any
action taken by Company, Holdings or any other Person pursuant to any
Environmental Law in response to (1) any Release the existence of which
could reasonably be expected to result in one or more material Environmental
Claims or (2) any Environmental Claims, in each case which would
reasonably be expected to result in a Material Adverse Effect.

 

93

 

(iii)                               Written
Communications Regarding Environmental Claims, Releases, Etc.  As soon as practicable following the sending
or receipt thereof by Holdings or any of its Subsidiaries, a copy of any and
all written communications with respect to (a) any Environmental Claims
which would reasonably be expected to result in a Material Adverse Effect and (b) any
Release required to be reported under any Environmental Law to any Government
Authority.

 

B.                                    Company’s Actions Regarding Hazardous Materials Activities.  Company and Holdings each
shall, in compliance with all applicable Environmental Laws, promptly undertake,
and shall cause each of its Subsidiaries promptly to undertake, any and all
permitting, investigations and abatement, cleanup, removal, remediation or
other response actions required under any applicable Environmental Law to
address any Release on, under, from or about any Facility.

 

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

 

A.                                    Execution of Guaranty and Personal Property Collateral Documents.  In the event that any Person becomes a
Domestic Subsidiary of Company after the Restatement Date, Company will
promptly notify Administrative Agent of that fact and cause such Domestic
Subsidiary to execute and deliver to Administrative Agent a counterpart of the
Guaranty and Security Agreement and to take all such further actions and
execute all such further documents and instruments as may be in the opinion of
Administrative Agent desirable to create in favor of Administrative Agent, for
the benefit of Lenders, a valid and perfected First Priority Lien on all of the
personal and mixed property assets of, and 65% of the Capital Stock of Foreign
Subsidiaries held by, such Domestic Subsidiary described in the applicable
forms of Collateral Documents.  In
addition, as provided in the Security Agreement, Company shall, or shall cause
the Domestic Subsidiary that owns the Capital Stock of such Person to, execute
and deliver to Administrative Agent a supplement to the Security Agreement and
to deliver to Administrative Agent all certificates representing such Capital
Stock of such Person (accompanied by irrevocable undated stock powers, duly
endorsed in blank).

 

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

 

C.                                    Subsidiary Organizational Documents, Legal Opinions, Etc.  Company shall deliver to Administrative
Agent, together with such Loan Documents, (i) certified copies of such
Subsidiary’s Organizational Documents, together with, if such Subsidiary is a
Domestic Subsidiary, a good standing certificate from the Secretary of State of
the jurisdiction of its organization and, to the extent generally available, a
certificate or other evidence of good

 

94

 

standing as to payment of any applicable franchise or similar taxes
from the appropriate taxing authority of such jurisdiction, each to be dated a
recent date prior to their delivery to Administrative Agent, (ii) a
certificate executed by the secretary or similar officer of such Subsidiary as
to (a) the fact that the attached resolutions of the Governing Body of
such Subsidiary approving and authorizing the execution, delivery and
performance of such Loan Documents are in full force and effect and have not
been modified or amended and (b) the incumbency and signatures of the
officers of such Subsidiary executing such Loan Documents, and (iii) at
the reasonable request of Administrative Agent, a favorable opinion of counsel
to such Subsidiary, in form and substance satisfactory to Administrative Agent
and its counsel, as to (a) the due organization and good standing of such
Subsidiary, (b) the due authorization, execution and delivery by such
Subsidiary of such Loan Documents, (c) the enforceability of such Loan
Documents against such Subsidiary and (d) such other matters (including
matters relating to the creation and perfection of Liens in any Collateral
pursuant to such Loan Documents) as Administrative Agent may reasonably
request, all of the foregoing to be satisfactory in form and substance to
Administrative Agent and its counsel.

 

6.9                               Matters
Relating to Additional Real Property Collateral.

 

From and after the Restatement Date, in the event that (i) Company
or any Subsidiary Guarantor acquires any fee interest in domestic real property
or any Material Leasehold Property with a fair market value in excess of
$500,000 in the reasonable judgment of Company or otherwise material to the
operations of Company and its Subsidiaries, taken as a whole, or (ii) at
the time any Person becomes a Subsidiary Guarantor, such Person owns or holds
any fee interest in domestic real property or any Material Leasehold Property
with a fair market value in excess of $500,000 in the reasonable judgment of
Company or otherwise material to the operations of Company and its
Subsidiaries, taken as a whole, in the case of clause (ii) above excluding
any such Real Property Asset the encumbrancing of which requires the consent of
any applicable lessor or (in the case of clause (ii) above) then-existing
senior lienholder, where Company and its Subsidiaries have attempted in good
faith, but are unable, to obtain such lessor’s or senior lienholder’s consent
(any such non-excluded Real Property Asset described in the foregoing clause (i) or
(ii) being an “Additional Mortgaged
Property”), Company or such Subsidiary Guarantor shall deliver to
Administrative Agent, as soon as practicable after such Person acquires such
Additional Mortgaged Property or becomes a Subsidiary Guarantor, as the case
may be, a fully executed and notarized mortgage (an “Additional Mortgage”), in proper form for recording in all
appropriate places in all applicable jurisdictions, encumbering the interest of
such Loan Party in such Additional Mortgaged Property; and such opinions
related thereto, environmental reports that may be reasonably required by
Administrative Agent, an Additional Mortgage Policy and evidence reasonably
satisfactory to Administrative Agent that the relevant Loan Party has (a) delivered
to the Title Company all certificates and affidavits reasonably and customarily
required by the Title Company in connection with the issuance of the Additional
Mortgage Policy and (b) paid to the Title Company or to the appropriate
Governmental Authorities all expenses and premiums of the Title Company in
connection with the issuance of the Additional Mortgage Policy and all
recording and stamp taxes (including mortgage recording and intangible taxes)
payable in connection with recording the applicable Additional Mortgage in the
appropriate real estate records.

 

95

 

6.10                        Interest
Rate Protection.

 

Within 90 days after the Closing Date, Company shall enter into one or
more Interest Rate Agreements with respect to the Term Loans, in an aggregate
notional principal amount of not less than 50% of the aggregate principal
amount of the Term Loans outstanding as of the Closing Date for a term of at
least three years, each such Interest Rate Agreement to be in form and
substance reasonably satisfactory to Administrative Agent.  Company shall maintain in effect each such
Interest Rate Agreement during its term.

 

6.11                        Deposit
Accounts and Securities Accounts.

 

Company shall, and shall cause each of its Domestic Subsidiaries to,
use and maintain its Deposit Accounts and Securities Accounts in a manner
reasonably satisfactory to Administrative Agent.  Company shall not permit such Deposit
Accounts and Securities Accounts at any time to have a principal balance in
excess of $500,000 in the aggregate unless Company or such Domestic Subsidiary,
as the case may be, has (i) executed and delivered to Administrative Agent
a Control Agreement, and (ii) taken all other steps necessary or, in the
opinion of Administrative Agent, desirable to ensure that Administrative Agent
has a perfected security interest in such account; provided that, if
Company or such Domestic Subsidiary is unable to obtain a Control Agreement
from the financial institution at which the Deposit Account or Securities
Account is maintained, Company shall, or shall cause such Domestic Subsidiary
to, within 30 days after opening such Deposit Account or Securities Account,
transfer all amounts in the applicable account to an account maintained at a
financial institution from which Company or such Domestic Subsidiary has
obtained a Control Agreement.

 

6.12                        Equitable
Lien in Favor of Lenders.

 

If Company or any of its Subsidiaries shall create or assume any Lien
upon any of its properties or assets, whether now owned or hereafter acquired,
other than Liens excepted by the provisions of subsection 7.2A, it shall
make or cause to be made effective provision whereby the Obligations will be
secured by such Lien equally and ratably with any and all other Indebtedness
secured thereby as long as any such Indebtedness shall be so secured; provided
that, notwithstanding the foregoing, this covenant shall not be construed as a
consent by Requisite Lenders to the creation or assumption of any such Lien not
permitted by the provisions of subsection 7.2A.

 

6.13                        Post-Restatement
Date Actions.

 

Within 30 days after the Restatement Date, or such later date as may be
agreed to by Administrative Agent in its reasonable discretion, Company shall,
and, as applicable, shall cause each other Loan Party to deliver to
Administrative Agent a certificate or other evidence of good standing with
respect to each Loan Party organized under the laws of the State of New York as
to any applicable franchise or similar taxes from the appropriate taxing
authority of the State of New York, each dated a recent date prior to the date
of delivery.

 

96

 

Section 7.                                          COMPANY’S
NEGATIVE COVENANTS

 

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

 

7.1                               Indebtedness.

 

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

 

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

 

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

 

(iii)                               Company
and its Subsidiaries may become and remain liable with respect to Indebtedness
in respect of Capital Leases, Indebtedness secured by Liens permitted under subsection 7.2A(ii) and
other Indebtedness incurred or assumed in connection with a Permitted
Acquisition in an aggregate principal amount not to exceed $50,000,000 at any
time outstanding;

 

(iv)                              Company
may become and remain liable with respect to Indebtedness to any Subsidiary
Guarantor, and any Subsidiary Guarantor may become and remain liable with
respect to Indebtedness to Company or any Subsidiary Guarantor; provided
that (a) a security interest in all such intercompany Indebtedness shall
have been granted to Administrative Agent for the benefit of Lenders and (b) if
such intercompany Indebtedness is evidenced by a promissory note or other
instrument, such promissory note or instrument shall have been pledged to
Administrative Agent pursuant to the Security Agreement;

 

(v)                                 Foreign
Subsidiaries of Company may become and remain liable with respect to other
Indebtedness to finance working capital and otherwise in an aggregate principal
amount not to exceed $10,000,000 at any time outstanding;

 

(vi)                              Company
and Subsidiary Guarantors may become and remain liable with respect to other
Indebtedness in an aggregate principal amount, taken together with all
Indebtedness outstanding under subsections (iii) and (v) of this subsection 7.1,
not to exceed $40,000,000 at any time outstanding; and

 

97

 

(vii)                           Indebtedness
outstanding on the Restatement Date and listed on Schedule 7.1
annexed hereto.

 

7.2                               Liens
and Related Matters.

 

A.                                    Prohibition on Liens.  Company shall not, and shall not permit any
of its Subsidiaries to, directly or indirectly, create, incur, assume or permit
to exist any Lien on or with respect to any property or asset of any kind
(including any document or instrument in respect of goods or accounts
receivable) of Company or any of its Subsidiaries, whether now owned or
hereafter acquired, or any income or profits therefrom, or file or authorize or
otherwise consent to the filing of any financing statement or other similar
notice of any Lien with respect to any such property, asset, income or profits
under the UCC or under any similar recording or notice statute, except:

 

(i)                                     Permitted
Encumbrances;

 

(ii)                                  Liens
on any asset existing at the time of acquisition of such asset by Company or a
Subsidiary, Liens to secure the payment of all or any part of the purchase
price of an asset upon the acquisition of such asset by Company or a Subsidiary
or to secure any Indebtedness permitted hereby incurred by Company or a
Subsidiary at the time of or within ninety days after the acquisition of such
asset, which Indebtedness is incurred for the purpose of financing all or any
part of the purchase price thereof or Liens assumed in connection with a
Permitted Acquisition and Liens on assets of a Person that becomes a direct or
indirect Subsidiary of Company after the date of this Agreement in a Permitted
Acquisition; provided, however, that the Lien shall apply only to
the asset so acquired and proceeds thereof; and provided  further,
that the aggregate principal amount of Indebtedness secured by such Liens shall
at no time exceed $40,000,000;

 

(iii)                               Liens
described in Schedule 7.2 annexed hereto and any replacement Liens
securing any replacement of Indebtedness secured, as of the Restatement Date,
by the Liens described in Schedule 7.2, provided that such
replacement Liens shall only apply to the assets subject, as of the Restatement
Date, to the Liens described in Schedule 7.2 and the aggregate
principal amount of such replacement Indebtedness shall not at any time exceed
the Indebtedness secured, as of the Restatement Date, by the Liens described in
Schedule 7.2;

 

(iv)                              Other
Liens securing Indebtedness or other obligations in an aggregate amount not to
exceed $1,000,000 at any time outstanding; and

 

(v)                                 Exclusive
Licenses with respect to Intellectual Property granted to third parties in
accordance with subsection 7.14.

 

Notwithstanding the foregoing, Company and its Domestic Subsidiaries
shall not enter into, or suffer to exist, any control agreements (as such term
is defined in the UCC), other than Control Agreements entered into pursuant to
subsection 6.11 of the Security Agreement.

 

98

 

B.                                    Equitable Lien in Favor of Lenders.  If Company or any of its Subsidiaries shall
create or assume any Lien upon any of its properties or assets, whether now
owned or hereafter acquired, other than Liens excepted by the provisions of subsection 7.2A,
it shall make or cause to be made effective provision whereby the Obligations
will be secured by such Lien equally and ratably with any and all other
Indebtedness secured thereby as long as any such Indebtedness shall be so
secured; provided that, notwithstanding the foregoing, this covenant
shall not be construed as a consent by Requisite Lenders to the creation or
assumption of any such Lien not permitted by the provisions of subsection 7.2A.

 

C.                                    No Further Negative Pledges.  Neither Company nor any of its Subsidiaries
shall enter into any agreement (other than the Loan Documents) prohibiting the
creation or assumption of any Lien upon any of its properties or assets,
whether now owned or hereafter acquired, except (i) any agreement
evidencing a sale or other disposition of assets, as to the assets being sold, (ii) with
respect to customary non-assignment or no-subletting clauses in leases or other
contracts entered into in the ordinary course of business or (iii) any
agreement evidencing Indebtedness secured by Liens permitted by subsection 7.2A(ii),
as to the assets securing such Indebtedness.

 

D.                                    No Restrictions on Subsidiary Distributions to Company or Other
Subsidiaries.  Company will
not, and will not permit any of its Subsidiaries to, create or otherwise cause
or suffer to exist or become effective any consensual contractual encumbrance
or restriction of any kind on the ability of any such Subsidiary to (i) pay
dividends or make any other distributions on any of such Subsidiary’s Capital Stock
owned by Company or any other Subsidiary of Company, (ii) repay or prepay
any Indebtedness owed by such Subsidiary to Company or any other Subsidiary of
Company, (iii) make loans or advances to Company or any other Subsidiary
of Company, or (iv) transfer any of its property or assets to Company or
any other Subsidiary of Company, except (a) as provided in this Agreement
and the other Loan Documents, (b) as may be provided in an agreement with
respect to a sale or other disposition of assets, (c) in agreements
evidencing a Capital Lease or Indebtedness secured as permitted by subsection 7.2A(ii) that
impose restrictions on the property so acquired, (d) by reason of
customary provisions restricting assignments, subletting or other transfers
contained in leases, licenses, Joint Venture agreements and similar agreements
entered into in the ordinary course of business and (e) Permitted
Encumbrances.

 

7.3                               Investments;
Acquisitions.

 

Company shall not, and shall not permit any of its Subsidiaries to,
directly or indirectly, make or own any Investment in any Person, including any
Joint Venture, or acquire, by purchase or otherwise, all or substantially all
the business, property or fixed assets of, or Capital Stock of any Person, or
any division or line of business of any Person except:

 

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

 

99

 

(ii)                                  (a) Company
and Subsidiary Guarantors may make and own Investments in Company and
Subsidiary Guarantors, (b) Subsidiaries of Company may make and own
Investments in Company or any Subsidiary Guarantor and (c) Subsidiaries of
Company that are not Subsidiary Guarantors may make and own Investments in
other Subsidiaries of Company that are not Subsidiary Guarantors;

 

(iii)                               Company
and its Subsidiaries may make Consolidated Capital Expenditures permitted by
subsection 7.8;

 

(iv)                              Company
and its Subsidiaries may continue to own the Investments owned by them and
described in Schedule 7.3 annexed hereto;

 

(v)                                 Company
and Subsidiary Guarantors may make Investments used or useful in the business
of Company and Subsidiary Guarantors (including Capital Stock and including
Capital Stock of Subsidiaries formed in connection with any such Investment)
having a fair market value not in excess of $40,000,000 in the aggregate and
continue to own such Investments after the acquisition thereof; provided
that (a) no Potential Event of Default or Event of Default shall have
occurred and be continuing at the time such acquisition occurs or after giving
effect thereto, (b) Company shall, and shall cause its Domestic
Subsidiaries to, comply no later than ten Business Days after the consummation
of any such acquisition (or such later date as may be agreed to by Administrative
Agent in its sole discretion) with the requirements of subsections 6.8 and 6.9
with respect to each such acquisition that results in a Person becoming a
Domestic Subsidiary and (c) after giving effect to any such acquisition
and the related adjustments (including pro forma adjustments arising out of
events which are directly attributable to a specific transaction, are factually
supportable and are expected to have a continuing impact, in each case
determined on a basis reasonably acceptable to Administrative Agent with
respect to, among other things, cost savings resulting from head count
reduction, closure of facilities and similar restructuring charges, which pro
forma adjustments shall be certified by the chief financial officer of Company)
as determined in writing by the Governing Body of Company, as if such
acquisition had occurred on the first day of the most recent twelve-month
period for which Company’s results of operations are available, Company would
be in compliance with the covenants set forth in subsection 7.6, and
Company has delivered to Administrative Agent an Officer’s Certificate so
stating and attaching financial information and calculations in form and
substance reasonably satisfactory to Administrative Agent required to confirm
such statement;

 

(vi)                              Company
and its Subsidiaries may make additional Investments in their respective non
wholly-owned Subsidiaries or Foreign Subsidiaries; provided that (a) the
amount of all such Investments constituting equity Investments, together with
all Investments permitted under subclause (b) of this subsection 7.3(vi),
does not exceed $10,000,000 in the aggregate and (b) in the case of such
Investments constituting intercompany Indebtedness, (1) the amount of all
such Investments, together with all Investments permitted under subclause (a) of
this subsection 7.3(vi), does not exceed $10,000,000 in aggregate
principal amount at any time outstanding, (2) a security interest

 

100

 

in all such intercompany Indebtedness shall have been granted to
Administrative Agent for the benefit of Lenders and (3) if such
intercompany Indebtedness is evidenced by a promissory note or other
instrument, such promissory note or instrument shall have been pledged to Administrative
Agent pursuant to the Security Agreement; provided  further that
the aggregate amount of Investments permitted under this subsection 7.3(vi) together
with the aggregate amount of Contingent Obligations permitted under subsection 7.4(vii) shall
at no time exceed $10,000,000;

 

(vii)                           Company
and its Subsidiaries may make and own other Investments in an aggregate amount
not to exceed at any time the sum of $2,000,000;

 

(viii)                        Company
may acquire and hold obligations of one or more officers or other employees of
Company or its Subsidiaries (a) in connection with such officers’ or
employees’ acquisition of shares of Holdings’ Capital Stock, so long as no cash
is actually advanced by Company or any of its Subsidiaries to such officers or
employees in connection with the acquisition of any such obligations or (b) otherwise
not in excess of $2,500,000 at any one time outstanding;

 

(ix)                                Company
and its Subsidiaries may receive and hold promissory notes and other non-cash
consideration received in connection with any Asset Sale permitted by subsection 7.7;

 

(x)                                   Company
and its Subsidiaries may acquire Securities in connection with the satisfaction
or enforcement of Indebtedness or claims due or owing to Company or any of its
Subsidiaries or as security for any such Indebtedness or claim; and

 

(xi)                                Company
and its Subsidiaries may make Investments in Holdings to the extent necessary
to permit Holdings to redeem all outstanding shares of the Holdings Perpetual
Preferred Stock and all outstanding options to purchase the Holdings Perpetual
Preferred Stock, in an amount equal to the redemption price thereof (including
any redemption premium), to pay the unpaid dividends thereon and to pay the IPO
Fees payable directly by Holdings; provided that such Investment shall
not exceed the amount of the IPO proceeds contributed by Holdings to Company
plus $5,500,000.

 

7.4                               Contingent
Obligations.

 

Company shall not, and shall not permit any of its Subsidiaries to,
directly or indirectly, create or become or remain liable with respect to any
Contingent Obligation, except:

 

(i)                                     Subsidiaries
of Company may become and remain liable with respect to Contingent Obligations
in respect of the Guaranty;

 

(ii)                                  Company
may become and remain liable with respect to Contingent Obligations in respect
of Letters of Credit;

 

101

 

(iii)                               Company
may become and remain liable with respect to Contingent Obligations under (a) Hedge
Agreements required under subsection 6.10 and (b) Hedge Agreements
entered into for the sole purpose of mitigating the currency exposure risks of
Company and its Subsidiaries;

 

(iv)                              Company
and its Subsidiaries may become and remain liable with respect to Contingent
Obligations in respect of customary indemnification and purchase price
adjustment obligations incurred in connection with Asset Sales or other sales
or dispositions of assets;

 

(v)                                 Company
and its Subsidiaries may become and remain liable with respect to Contingent
Obligations under performance guarantees relating to ordinary course of
business contractual obligations (other than contractual obligations to repay
Indebtedness) of Company or any of its Subsidiaries otherwise permitted
hereunder;

 

(vi)                              Company
and its Subsidiaries may become and remain liable with respect to Contingent
Obligations in respect of any Indebtedness of Company or any of its
Subsidiaries permitted by subsection 7.1(iii);

 

(vii)                           Company
and its Subsidiaries may become and remain liable with respect to Contingent
Obligations in respect of any Indebtedness of Foreign Subsidiaries permitted by
subsection 7.1(v); provided that the aggregate amount of Contingent
Obligations permitted under this subsection 7.4(vii) together with
the aggregate amount of Investments permitted under subsection 7.3(vi) shall
at no time exceed $10,000,000;

 

(viii)                        Company
and Subsidiary Guarantors may become and remain liable with respect to
Contingent Obligations in respect of any Indebtedness of Company or any
Subsidiary Guarantor permitted by subsection 7.1(vi); and

 

(ix)                                Company
and its Subsidiaries may become and remain liable with respect to other
Contingent Obligations; provided that the maximum aggregate liability,
contingent or otherwise, of Company and its Subsidiaries in respect of all such
Contingent Obligations shall at no time exceed $1,000,000.

 

7.5                               Restricted
Junior Payments.

 

Company shall not, and shall not permit any of its Subsidiaries to,
directly or indirectly, declare, order, pay, make or set apart any sum for any
Restricted Junior Payment; provided that Company may make Restricted
Junior Payments to Holdings (i) in an aggregate amount not to exceed
$5,000,000 in any Fiscal Year, to the extent necessary to permit Holdings to
pay general administrative costs and expenses, (ii) so long as no Event of
Default shall have occurred and be continuing or shall be caused thereby, in an
aggregate amount not to exceed $2,000,000 in any Fiscal Year, with unused
amounts being available in future Fiscal Years, to the extent necessary to
permit Holdings to repurchase shares of Capital Stock of Holdings (or options
or warrants to acquire Capital Stock of Holdings) from employees of Company, (iii) to
the extent necessary to permit Holdings to discharge the consolidated tax
liabilities of Holdings

 

102

 

and its Subsidiaries, in each case so long as Holdings applies the
amount of any such Restricted Junior Payment for such purpose, (iv) to the
extent necessary to permit Holdings to pay dividends required in connection
with the exercise of Rollover Options to the extent that, with respect to the
exercise of each Rollover Option, the amount of such dividends does not exceed
the amount of the exercise price paid, (v) that constitute the Permitted
Dividend Payment, provided that the amount of the Permitted Dividend
Payment together with the aggregate amount of the Management Bonuses shall not
exceed $15,000,000 and (vi) to the extent necessary to permit Holdings to
redeem all outstanding shares of the Holdings Perpetual Preferred Stock and all
outstanding options to purchase the Holdings Perpetual Preferred Stock, in an
amount equal to the redemption price thereof (including any redemption
premium), to pay the unpaid dividends thereon and to pay the IPO Fees payable
directly by Holdings; provided that such Restricted Junior Payment shall
not exceed the amount of the IPO proceeds contributed by Holdings to Company
plus $5,500,000.

 

7.6                               Financial
Covenants.

 

A.                                    Minimum Fixed Charge Coverage Ratio.  Company shall not permit the ratio as of the
last day of any Fiscal Quarter ending on or after the Restatement Date of (i) Consolidated
EBITDA minus Consolidated Capital Expenditures that are unfinanced or financed
with proceeds of the Loans and, in each case, incurred during the relevant
period, to (ii) Consolidated Fixed Charges for the period of four
consecutive Fiscal Quarters ending on the last day of such Fiscal Quarter to be
less than 1.25:1.00.

 

B.                                    Maximum Leverage Ratio.  Company shall not permit the Consolidated
Leverage Ratio as of the last day of any Fiscal Quarter ending during any of
the periods set forth below to exceed the correlative ratio indicated:

 

	
  Fiscal
  Quarter Ending

  	
   

  	
  Maximum Leverage Ratio

  	
   

  
	
  July 7, 2005 through December 29,
  2007

  	
   

  	
  4.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Thereafter

  	
   

  	
  3.50

  	
   

  

 

C.                                    Basis of Calculations.

 

With respect to any period
during which a Permitted Acquisition or an Asset Sale has occurred (each, a “Subject Transaction”), for purposes of
determining compliance with the financial covenants set forth in this subsection 7.6,
Consolidated EBITDA and the components of Consolidated Fixed Charges shall be
calculated with respect to such period on a pro forma basis (including pro
forma adjustments arising out of events which are directly attributable to a
specific transaction, are factually supportable and are expected to have a
continuing impact, in each case determined on a basis reasonably acceptable to
Administrative Agent with respect to, among other things, cost savings
resulting from head count reduction, closure of facilities and similar
restructuring charges, which pro forma adjustments shall be certified by the
chief financial officer of Company) using the historical audited financial

 

103

 

statements of any business so
acquired or to be acquired or sold or to be sold and the consolidated financial
statements of Company and its Subsidiaries which shall be reformulated as if
such Subject Transaction, and any Indebtedness incurred or repaid in connection
therewith, had been consummated or incurred or repaid at the beginning of such
period (and assuming that such Indebtedness bears interest during any portion
of the applicable measurement period prior to the relevant acquisition at the
weighted average of the interest rates that would have been applicable to such
Indebtedness during such period).

 

7.7                               Restriction
on Fundamental Changes; Asset Sales.

 

Company shall not and shall not permit any of its Subsidiaries to,
alter the legal structure of Company or any of its Subsidiaries, or enter into
any transaction of merger or consolidation, or liquidate, wind-up or dissolve
itself (or suffer any liquidation or dissolution), or convey, sell, lease or
sublease (as lessor or sublessor), transfer or otherwise dispose of, in one
transaction or a series of transactions, all or any part of its business,
property or assets (including its notes or receivables and Capital Stock of a
Subsidiary, whether newly issued or outstanding), whether now owned or
hereafter acquired, except:

 

(i)                                     any
Subsidiary of Company may be merged with or into Company or any wholly-owned
Subsidiary Guarantor, or be liquidated, wound up or dissolved, or all or any
part of its business, property or assets may be conveyed, sold, leased,
transferred or otherwise disposed of, in one transaction or a series of
transactions, to Company or any wholly-owned Subsidiary Guarantor; provided
that, in the case of such a merger, Company or such wholly-owned Subsidiary
Guarantor shall be the continuing or surviving Person;

 

(ii)                                  Company
and its Subsidiaries may sell or otherwise dispose of assets in transactions
that do not constitute Asset Sales; provided that, other than in the
case of promotional or employee discounts granted in the ordinary course of
business, the consideration received for such assets shall be in an amount
Company reasonably believes to be at least equal to the fair market value
thereof;

 

(iii)                               Company
and its Subsidiaries may sell or otherwise dispose of obsolete, worn out or
surplus property in the ordinary course of business;

 

(iv)                              Company
and its Subsidiaries may (a) dispose of the Mexican Facilities and the
Florida Facility and (b) make other Asset Sales of assets having a fair
market value not in excess of $15,000,000; provided that (1) the
consideration received for such assets shall be in an amount at least equal to
the fair market value thereof; (2) not less than 70% of the consideration
received shall be Cash; and (3) the proceeds of such Asset Sales shall be
applied as required by subsection 2.4B(iii)(a) or subsection 2.4D;

 

(v)                                 in
order to resolve disputes that occur in the ordinary course of business,
Company and its Subsidiaries may discount or otherwise compromise for less than
the face value thereof, notes, accounts receivable, contract rights or
commercial tort claims;

 

104

 

(vi)                              Company
or a Subsidiary may sell or dispose of shares of Capital Stock of any of its
Subsidiaries in order to qualify members of the Governing Body of the
Subsidiary if required by applicable law;

 

(vii)                           any
Person may be merged with or into any Subsidiary if the acquisition of the
Capital Stock of such Person by such Subsidiary would have been permitted
pursuant to subsection 7.3; provided that (a) if a Subsidiary
is not the surviving or continuing Person, the surviving Person becomes a
Subsidiary and complies with the provisions of subsection 6.8 and (b) no
Potential Event of Default or Event of Default shall have occurred or be
continuing after giving effect thereto; and

 

(viii)                        Company
and its Subsidiaries may make Investments permitted under subsection 7.3.

 

7.8                               Consolidated
Capital Expenditures.

 

Company shall not, and shall not permit its Subsidiaries to, make or
incur Consolidated Capital Expenditures, in any period indicated below, in an aggregate
amount in excess of the corresponding amount (the “Maximum Consolidated Capital Expenditures Amount”) set forth
below opposite such period; provided that the Maximum Consolidated
Capital Expenditures Amount for any period shall be increased by an amount
equal to the excess, if any, of the Maximum Consolidated Capital Expenditures
Amount for the previous period (without giving effect to any adjustment in
accordance with this proviso) over the actual amount of Consolidated Capital
Expenditures for such previous period; provided, further that in
no event shall the amount of such increase exceed 50% of the Maximum
Consolidated Capital Expenditures Amount for such previous period (prior to any
adjustment in accordance with this proviso):

 

	
  Period

  	
   

  	
  Maximum Consolidated

  Capital Expenditures

  	
   

  
	
  Fiscal Year ending December, 31 2005

  	
   

  	
  $

  	
  6,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Fiscal Year ending December, 30 2006

  	
   

  	
  $

  	
  9,100,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Fiscal Year ending December, 29 2007

  	
   

  	
  $

  	
  9,400,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Fiscal Year ending January 3, 2009

  	
   

  	
  $

  	
  9,100,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Fiscal Year ending January 2, 2010

  	
   

  	
  $

  	
  9,100,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Fiscal Year ending January 1, 2011

  	
   

  	
  $

  	
  9,100,000

  	
   

  

 

105

 

7.9                               Transactions
with Shareholders and Affiliates.

 

Company shall not, and shall not permit any of its Subsidiaries to,
directly or indirectly, enter into or permit to exist any transaction
(including the purchase, sale, lease or exchange of any property or the
rendering of any service) with any holder of 10% or more of any class of Capital
Stock of Company or with any Affiliate of Company or of any such holder, on
terms that are less favorable to Company or that Subsidiary, as the case may
be, than those that might be obtained at the time from Persons who are not such
a holder or Affiliate; provided that the foregoing restriction shall not
apply to:

 

(i)                                     any
transaction between Company and any of its wholly-owned Subsidiaries or between
any of its wholly-owned Subsidiaries;

 

(ii)                                  reasonable
and customary fees paid to members of the Governing Bodies of Company and its
Subsidiaries, provided that such members are not employees, Affiliates
(other than non-employee directors of any Loan Party), or employees of
Affiliates of Company, Holdings or any Equity Investor;

 

(iii)                               reimbursement
of reasonable out-of-pocket expenses of Ares or its Affiliates and so long as
no Event of Default shall have occurred and be continuing or shall be caused
thereby, (a) payments of management fees to Ares or its Affiliates in an
aggregate amount not to exceed $250,000 in any Fiscal Year in accordance with
the Management Agreement and (b) payments of transaction fees to Ares or
its Affiliates in connection with the Acquisition in an aggregate amount not to
exceed $2,000,000;

 

(iv)                              indemnification
payments to officers or directors of Loan Parties;

 

(v)                                 transactions
described on Schedule 7.9 annexed hereto;

 

(vi)                              any
Restricted Junior Payment or Investment otherwise permitted hereby;

 

(vii)                           reasonable
and customary director, officer and employee compensation (including bonuses)
and other benefits (including retirement, health insurance, stock option and
benefit plans) and indemnification arrangements, in each case approved by the
Governing Body of Company or the applicable Subsidiary, as the case may be; and

 

(ix)                                payment
of the IPO Fees paid directly by Company.

 

7.10                        Sales
and Lease-Backs.

 

Company shall not, and shall not permit any of its Subsidiaries to,
directly or indirectly, become or remain liable as lessee or as a guarantor or
other surety with respect to any lease, whether an Operating Lease or a Capital
Lease, of any property (whether real, personal or mixed), whether now owned or
hereafter acquired, that Company or any of its Subsidiaries has sold or
transferred or is to sell or transfer to any other Person (other than Company
or any of its Subsidiaries); provided that Company and its Subsidiaries
may become and remain liable as lessee, guarantor or other surety with respect
to any such lease if and to the extent that Company

 

106

 

or any of its Subsidiaries would be permitted to enter into, and remain
liable under, such lease to the extent that the transaction would be permitted
under subsection 7.1, assuming the sale and lease back transaction
constituted Indebtedness in a principal amount equal to the gross proceeds of
the sale; provided  further, however, that the proceeds of
any such sales and lease back transaction shall be applied to repay the Loans
in accordance with subsection 2.4B(iii)(a).

 

7.11                        Conduct
of Business.

 

From and after the Closing Date, Company shall not, and shall not
permit any of its Subsidiaries to, engage in any business other than (i) the
businesses engaged in by Company and its Subsidiaries on the Closing Date and
similar or related businesses and (ii) such other lines of business as may
be consented to by Requisite Lenders.

 

7.12                        Amendments
or Waivers of the Representations and Warranties Insurance Policy.

 

Neither Company nor any of its Subsidiaries
will agree to any amendment to, or waiver of any of its rights under, the
Representations and Warranties Insurance Policy after the Closing Date that is
or are materially adverse to the Lenders without in each case obtaining the
prior written consent of Requisite Lenders to such amendment or waiver.

 

7.13                        Fiscal
Year.

 

Company shall not change its Fiscal Year-end.

 

7.14                        Trademark.

 

Company shall
not, and shall not permit any of its Subsidiaries to, sell any Intellectual
Property, or grant exclusive licenses in respect of Intellectual Property, of
Company or any of its Subsidiaries for use in the United States or in any
particular geographical regions thereof, except to the extent that sales in the
United States or in the applicable regions thereof, as the case may be, for the
prior twelve-month period of inventory using such Intellectual Property in the
production or sale thereof do not in the aggregate (i) with respect to any
single sale or license of Intellectual Property (or related series of sales or
licenses of Intellectual Property), account for more than 10% of the
consolidated net sales of Company and its Subsidiaries for the prior
twelve-month period and (ii) with respect to all such sales or licenses of
Intellectual Property, account for more than 20% of the consolidated net sales
of Company and its Subsidiaries for the prior twelve-month period.

 

Section 8.                                          EVENTS
OF DEFAULT

 

If any of the following conditions or events (“Events of Default”) shall occur:

 

8.1                               Failure
to Make Payments When Due.

 

Failure by Company to pay any installment of principal of any Loan when
due, whether at stated maturity, by acceleration, by notice of voluntary
prepayment, by mandatory

 

107

 

prepayment or otherwise; failure by Company to pay when due any amount
payable to an Issuing Lender in reimbursement of any drawing under a Letter of
Credit; or failure by Company to pay any interest on any Loan or any fee or any
other amount due under this Agreement within five days after the date due; or

 

8.2                               Default
in Other Agreements.

 

(i)                                     Failure
of Holdings, Company or any of its Subsidiaries to pay when due any principal
of or interest on or any other amount payable in respect of one or more items
of Indebtedness (other than Indebtedness referred to in subsection 8.1) or
Contingent Obligations in an aggregate principal amount of $2,500,000 or more,
in each case beyond the end of any grace period provided therefor; or

 

(ii)                                  Breach
or default by Holdings, Company or any of its Subsidiaries with respect to any
other material term of (a) one or more items of Indebtedness or Contingent
Obligations in the individual or aggregate principal amounts referred to in
clause (i) above or (b) any loan agreement, mortgage, indenture or
other agreement relating to such item(s) of Indebtedness or Contingent
Obligation(s), if the effect of such breach or default is to cause, or to
permit the holder or holders of that Indebtedness or Contingent Obligation(s)
(or a trustee on behalf of such holder or holders) to cause, that Indebtedness
or Contingent Obligation(s) to become or be declared due and payable prior to
its stated maturity or the stated maturity of any underlying obligation, as the
case may be (upon the giving or receiving of notice, lapse of time, both, or
otherwise); or

 

8.3                               Breach
of Certain Covenants.

 

Failure of Company to perform or comply with any term or condition
contained in subsection 2.5, 6.1(i) or 6.2 or Section 7 of this
Agreement; or

 

8.4                               Breach
of Warranty.

 

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

 

8.5                               Other
Defaults Under Loan Documents.

 

Any Loan Party shall default in the performance of or compliance with
any term contained in this Agreement or any of the other Loan Documents, other
than any such term referred to in any other subsection of this Section 8,
and such default shall not have been remedied or waived within 30 days after
receipt by Company and such Loan Party of notice from Administrative Agent of
such default; or

 

108

 

8.6                               Involuntary
Bankruptcy; Appointment of Receiver, etc.

 

(i)                                     A
court having jurisdiction in the premises shall enter a decree or order for
relief in respect of Holdings, Company or any of its Subsidiaries in an
involuntary case under the Bankruptcy Code or under any other applicable
bankruptcy, insolvency or similar law now or hereafter in effect, which decree
or order is not stayed; or any other similar relief shall be granted under any
applicable federal or state law; or

 

(ii)                                  an
involuntary case shall be commenced against Holdings, Company or any of its
Subsidiaries under the Bankruptcy Code or under any other applicable
bankruptcy, insolvency or similar law now or hereafter in effect; or a decree
or order of a court having jurisdiction in the premises for the appointment of
a receiver, liquidator, sequestrator, trustee, custodian or other officer
having similar powers over Holdings, Company or any of its Subsidiaries, or
over all or a substantial part of its property, shall have been entered; or
there shall have occurred the involuntary appointment of an interim receiver,
trustee or other custodian of Holdings, Company or any of its Subsidiaries for
all or a substantial part of its property; or a warrant of attachment, execution
or similar process shall have been issued against any substantial part of the
property of Holdings, Company or any of its Subsidiaries, and any such event
described in this clause (ii) shall continue for 60 days unless dismissed,
bonded or discharged; or

 

8.7                               Voluntary
Bankruptcy; Appointment of Receiver, etc.

 

(i)                                     Holdings,
Company or any of its Subsidiaries shall have an order for relief entered with
respect to it or commence a voluntary case under the Bankruptcy Code or under
any other applicable bankruptcy, insolvency or similar law now or hereafter in
effect, or shall consent to the entry of an order for relief in an involuntary
case, or to the conversion of an involuntary case to a voluntary case, under
any such law, or shall consent to the appointment of or taking possession by a
receiver, trustee or other custodian for all or a substantial part of its
property; or Holdings, Company or any of its Subsidiaries shall make any
assignment for the benefit of creditors; or

 

(ii)                                  Holdings,
Company or any of its Subsidiaries shall be unable, or shall fail generally, or
shall admit in writing its inability, to pay its debts as such debts become
due; or the Governing Body of Holdings, Company or any of its Subsidiaries (or
any committee thereof) shall adopt any resolution or otherwise authorize any
action to approve any of the actions referred to in clause (i) above or
this clause (ii); or

 

8.8                               Judgments
and Attachments.

 

Any money judgment, writ or warrant of attachment or similar process
involving in the aggregate at any time an amount in excess of $2,500,000, in
either case to the extent not adequately covered by insurance as to which a
solvent insurance company has acknowledged coverage, shall be entered or filed
against Company or any of its Subsidiaries or any of their respective assets
and shall remain undischarged, unvacated, unbonded or unstayed for a period of
60 days (or in any event later than five days prior to the date of any proposed
sale thereunder); or

 

109

 

8.9                               Dissolution.

 

Any order, judgment or decree shall be entered against Holdings,
Company or any of its Subsidiaries decreeing the dissolution or split up of
Holdings, Company or that Subsidiary and such order shall remain undischarged
or unstayed for a period in excess of 30 days; or

 

8.10                        Employee
Benefit Plans.

 

There shall occur one or more ERISA Events or similar events in respect
of any Foreign Plans, that individually or in the aggregate result in or would
reasonably be expected, individually or in the aggregate, to result in a
current liability of Company and its Subsidiaries in excess of $2,500,000; or

 

8.11                        Change
in Control.

 

A Change in Control shall have occurred; or

 

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

 

At any time after the execution and delivery thereof, (i) any Loan
Document or any provision thereof, for any reason other than the satisfaction
in full of all Obligations, shall cease to be in full force and effect (other
than in accordance with its terms) or shall be declared to be null and void, (ii) Administrative
Agent shall not have or shall cease to have a valid and perfected First
Priority Lien in any Collateral purported to be covered by the Collateral
Documents, in each case for any reason other than in accordance with a release
of Collateral contemplated by the Loan Documents the failure of Administrative
Agent or any Lender to take any action within its control, or (iii) any
Loan Party shall contest the validity or enforceability of any Loan Document or
any provision thereof in writing or deny in writing that it has any further
liability, including with respect to future advances by Lenders, under any Loan
Document or any provision thereof to which it is a party; or

 

8.13                        Conduct
of Business By Holdings.

 

Holdings shall (i) engage in any business or (ii) own any
material assets other than (a) the Capital Stock of Company and (b) Cash
and Cash Equivalents or (iii) have any Indebtedness, Liens (other than
Permitted Encumbrances) or Contingent Obligations other than (a) under the
Guaranty or the Security Agreement and (b) customary indemnifications of
officers and directors; or

 

8.14                        Amendment of Acquisition Agreement.

 

Holdings shall agree to any material amendment to, or waive any of its
material rights under, or otherwise change any material terms of, the
Acquisition Agreement as in effect on the Closing Date in a manner adverse to
Holdings or any of its Subsidiaries or to Lenders without the prior written
consent of Administrative Agent and Requisite Lenders:

 

110

 

THEN (i) upon
the occurrence of any Event of Default described in subsection 8.6 or 8.7
with respect to Company, each of (a) the unpaid principal amount of and
accrued interest on the Loans, (b) an amount equal to the maximum amount
that may at any time be drawn under all Letters of Credit then outstanding
(whether or not any beneficiary under any such Letter of Credit shall have
presented, or shall be entitled at such time to present, the drafts or other
documents or certificates required to draw under such Letter of Credit), and (c) all
other Obligations shall automatically become immediately due and payable,
without presentment, demand, protest or other requirements of any kind, all of
which are hereby expressly waived by Company, and the obligation of each Lender
to make any Loan, the obligation of Administrative Agent to issue any Letter of
Credit and the right of any Lender to issue any Letter of Credit hereunder
shall thereupon terminate, and (ii) upon the occurrence and during the
continuation of any other Event of Default, Administrative Agent shall, upon
the written request or with the written consent of Requisite Lenders, by
written notice to Company, declare all or any portion of the amounts described
in clauses (a) through (c) above to be, and the same shall forthwith
become, immediately due and payable, and the obligation of each Lender to make
any Loan, the obligation of Administrative Agent to issue any Letter of Credit
and the right of any Lender to issue any Letter of Credit hereunder shall
thereupon terminate; provided that the foregoing shall not affect in any
way the obligations of Revolving Lenders under subsection 3.3C(i) or
the obligations of Revolving Lenders to purchase assignments of any unpaid
Swing Line Loans as provided in subsection 2.1A(iii).

 

Any amounts described in clause (b) above, when received by
Administrative Agent, shall be held by Administrative Agent pursuant to the
terms of the Security Agreement and shall be applied as therein provided.

 

Section 9.                                          ADMINISTRATIVE
AGENT

 

9.1                               Appointment.

 

A.                                    Appointment of Administrative Agent.  BNP Paribas is hereby appointed
Administrative Agent hereunder and under the other Loan Documents.  Each Lender hereby authorizes Administrative
Agent to act as its agent in accordance with the terms of this Agreement and
the other Loan Documents.  Administrative
Agent agrees to act upon the express conditions contained in this Agreement and
the other Loan Documents, as applicable. 
The provisions of this Section 9 are solely for the benefit of
Administrative Agent and Lenders and no Loan Party shall have rights as a third
party beneficiary of any of the provisions thereof.  In performing its functions and duties under
this Agreement, Administrative Agent (other than as provided in subsection 2.1D)
shall act solely as an agent of Lenders and does not assume and shall not be
deemed to have assumed any obligation towards or relationship of agency or
trust with or for Company or any other Loan Party.

 

B.                                    Appointment of Supplemental Collateral Agents.  It is the purpose of this Agreement and the
other Loan Documents that there shall be no violation of any law of any
jurisdiction denying or restricting the right of banking corporations or
associations to transact business as agent or trustee in such
jurisdiction.  It is recognized that in
case of litigation under this Agreement or any of the other Loan Documents, and
in particular in case of the enforcement

 

111

 

of any of the Loan Documents, or in case Administrative Agent deems
that by reason of any present or future law of any jurisdiction it may not
exercise any of the rights, powers or remedies granted herein or in any of the
other Loan Documents or take any other action which may be desirable or
necessary in connection therewith, it may be necessary that Administrative
Agent appoint an additional individual or institution as a separate trustee,
co-trustee, collateral agent or collateral co-agent (any such additional
individual or institution being referred to herein individually as a “Supplemental Collateral Agent” and
collectively as “Supplemental Collateral
Agents”).

 

In the event that Administrative Agent appoints a Supplemental
Collateral Agent with respect to any Collateral, (i) each and every right,
power, privilege or duty expressed or intended by this Agreement or any of the
other Loan Documents to be exercised by or vested in or conveyed to
Administrative Agent with respect to such Collateral shall be exercisable by
and vest in such Supplemental Collateral Agent to the extent, and only to the
extent, necessary to enable such Supplemental Collateral Agent to exercise such
rights, powers and privileges with respect to such Collateral and to perform
such duties with respect to such Collateral, and every covenant and obligation
contained in the Loan Documents and necessary to the exercise or performance
thereof by such Supplemental Collateral Agent shall run to and be enforceable
by either Administrative Agent or such Supplemental Collateral Agent, and (ii) the
provisions of this Section 9 and of subsections 10.2 and 10.3 that refer
to Administrative Agent shall inure to the benefit of such Supplemental
Collateral Agent and all references therein to Administrative Agent shall be
deemed to be references to Administrative Agent and/or such Supplemental
Collateral Agent, as the context may require.

 

Should any instrument in writing from Company or any other Loan Party
be required by any Supplemental Collateral Agent so appointed by Administrative
Agent for more fully and certainly vesting in and confirming to him or it such
rights, powers, privileges and duties, Company shall, or shall cause such Loan
Party to, execute, acknowledge and deliver any and all such instruments
promptly upon request by Administrative Agent. 
In case any Supplemental Collateral Agent, or a successor thereto, shall
die, become incapable of acting, resign or be removed, all the rights, powers,
privileges and duties of such Supplemental Collateral Agent, to the extent
permitted by law, shall vest in and be exercised by Administrative Agent until
the appointment of a new Supplemental Collateral Agent.

 

C.                                    Control.  Each Lender
and Administrative Agent hereby appoint each other Lender as agent for the
purpose of perfecting Administrative Agent’s security interest in assets that,
in accordance with the UCC, can be perfected by possession or control.

 

9.2                               Powers
and Duties; General Immunity.

 

A.                                    Powers; Duties Specified.  Each Lender irrevocably authorizes
Administrative Agent to take such action on such Lender’s behalf and to
exercise such powers, rights and remedies hereunder and under the other Loan
Documents as are specifically delegated or granted to Administrative Agent by
the terms hereof and thereof, together with such powers, rights and remedies as
are reasonably incidental thereto. 
Administrative Agent shall have only those duties and responsibilities
that are expressly specified in this Agreement and the other Loan

 

112

 

Documents.  Administrative Agent
may exercise such powers, rights and remedies and perform such duties by or
through its agents or employees. 
Administrative Agent shall not have, by reason of this Agreement or any
of the other Loan Documents, a fiduciary relationship in respect of any Lender
or Company; and nothing in this Agreement or any of the other Loan Documents,
expressed or implied, is intended to or shall be so construed as to impose upon
Administrative Agent any obligations in respect of this Agreement or any of the
other Loan Documents except as expressly set forth herein or therein.

 

B.                                    No Responsibility for Certain Matters.  No Agent shall be responsible to any Lender
for the execution, effectiveness, genuineness, validity, enforceability,
collectibility or sufficiency of this Agreement or any other Loan Document or
for any representations, warranties, recitals or statements made herein or
therein or made in any written or oral statements or in any financial or other
statements, instruments, reports or certificates or any other documents
furnished or made by such Agent to Lenders or by or on behalf of Company to
such Agent or any Lender in connection with the Loan Documents and the
transactions contemplated thereby or for the financial condition or business
affairs of Company or any other Person liable for the payment of any
Obligations, nor shall such Agent be required to ascertain or inquire as to the
performance or observance of any of the terms, conditions, provisions,
covenants or agreements contained in any of the Loan Documents or as to the use
of the proceeds of the Loans or the use of the Letters of Credit or as to the
existence or possible existence of any Event of Default or Potential Event of
Default.  Anything contained in this
Agreement to the contrary notwithstanding, Administrative Agent shall not have
any liability arising from confirmations of the amount of outstanding Loans or
the Letter of Credit Usage or the component amounts thereof.

 

C.                                    Exculpatory Provisions.  No Agent or any of its officers, directors,
employees or agents shall be liable to Lenders for any action taken or omitted
by such Agent under or in connection with any of the Loan Documents except to
the extent caused by such Agent’s gross negligence or willful misconduct.  An Agent shall be entitled to refrain from
any act or the taking of any action (including the failure to take an action)
in connection with this Agreement or any of the other Loan Documents or from
the exercise of any power, discretion or authority vested in it hereunder or
thereunder unless and until such Agent shall have received instructions in
respect thereof from Requisite Lenders (or such other Lenders as may be
required to give such instructions under subsection 10.6) and, upon
receipt of such instructions from Requisite Lenders (or such other Lenders, as
the case may be), such Agent shall be entitled to act or (where so instructed)
refrain from acting, or to exercise such power, discretion or authority, in
accordance with such instructions; provided that no Agent shall be
required to take any action that, in its opinion or the opinion of its counsel,
may expose such Agent to liability or that is contrary to any Loan Document or
applicable law.  Without prejudice to the
generality of the foregoing, (i) each Agent shall be entitled to rely, and
shall be fully protected in relying, upon any communication (including any
electronic message, Internet or intranet website posting or other distribution),
instrument or document believed by it to be genuine and correct and to have
been signed or sent by the proper person or persons, and shall be entitled to
rely and shall be protected in relying on opinions and judgments of attorneys
(who may be attorneys for Company and its Subsidiaries), accountants, experts
and other professional advisors selected by it; and (ii) no Lender shall
have

 

113

 

any right of action whatsoever against an Agent as a result of such
Agent acting or (where so instructed) refraining from acting under this
Agreement or any of the other Loan Documents in accordance with the
instructions of Requisite Lenders (or such other Lenders as may be required to
give such instructions under subsection 10.6).

 

D.                                    Agents Entitled to Act as Lender.  The agency hereby created shall in no way
impair or affect any of the rights and powers of, or impose any duties or
obligations upon, an Agent in its individual capacity as a Lender hereunder.  With respect to its participation in the
Loans and the Letters of Credit, an Agent shall have the same rights and powers
hereunder as any other Lender and may exercise the same as though it were not
performing the duties and functions delegated to it hereunder, and the term “Lender”
or “Lenders” or any similar term shall, unless the context clearly otherwise
indicates, include each Agent in its individual capacity.  An Agent and its Affiliates may accept
deposits from, lend money to, acquire equity interests in and generally engage
in any kind of commercial banking, investment banking, trust, financial
advisory or other business with Company or any of its Affiliates as if it were
not performing the duties specified herein, and may accept fees and other consideration
from Company for services in connection with this Agreement and otherwise
without having to account for the same to Lenders.

 

9.3                               Independent
Investigation by Lenders; No Responsibility for Appraisal of Creditworthiness.

 

Each Lender agrees that it has made its own independent investigation
of the financial condition and affairs of Company and its Subsidiaries in
connection with the making of the Loans and the issuance of Letters of Credit
hereunder and that it has made and shall continue to make its own appraisal of
the creditworthiness of Company and its Subsidiaries. No Agent shall have any
duty or responsibility, either initially or on a continuing basis, to make any
such investigation or any such appraisal on behalf of Lenders or to provide any
Lender with any credit or other information with respect thereto, whether
coming into its possession before the making of the Loans or at any time or
times thereafter, and no Agent shall have any responsibility with respect to
the accuracy of or the completeness of any information provided to Lenders.

 

9.4                               Right
to Indemnity.

 

Each Lender, in proportion to its Pro Rata Share, severally agrees to
indemnify each Agent and its officers, directors, employees, agents, attorneys,
professional advisors and Affiliates to the extent that any such Person shall
not have been reimbursed by Company, for and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses (including counsel fees and disbursements and fees and disbursements
of any financial advisor engaged by Agents) or disbursements of any kind or
nature whatsoever which may be imposed on, incurred by or asserted against an
Agent or such other Person in exercising the powers, rights and remedies of an
Agent or performing duties of an Agent hereunder or under the other Loan
Documents or otherwise in its capacity as Agent in any way relating to or
arising out of this Agreement or the other Loan Documents; provided that
no Lender shall be liable for any portion of such liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of an Agent resulting solely from such Agent’s gross

 

114

 

negligence or willful misconduct as determined by a final judgment of a
court of competent jurisdiction.  If any
indemnity furnished to an Agent or any other such Person for any purpose shall,
in the opinion of such Agent, be insufficient or become impaired, such Agent
may call for additional indemnity and cease, or not commence, to do the acts
indemnified against until such additional indemnity is furnished.

 

9.5                               Resignation
of Agents; Successor Administrative Agent and Swing Line Lender.

 

A.                                    Resignation; Successor Administrative Agent.  Any Agent may resign at any time by giving 30
days’ prior written notice thereof to Lenders and Company.  Upon any such notice of resignation by
Administrative Agent, Requisite Lenders shall have the right, upon five
Business Days’ notice to Company, to appoint a successor Administrative
Agent.  If no such successor shall have
been so appointed by Requisite Lenders and shall have accepted such appointment
within 30 days after the retiring Administrative Agent gives notice of its
resignation, the retiring Administrative Agent may, on behalf of Lenders,
appoint a successor Administrative Agent. 
If Administrative Agent shall notify Lenders and Company that no Person
has accepted such appointment as successor Administrative Agent, such
resignation shall nonetheless become effective in accordance with
Administrative Agent’s notice and (i) the retiring Administrative Agent
shall be discharged from its duties and obligations under the Loan Documents,
except that any Collateral held by Administrative Agent will continue to be
held by it until a Person shall have accepted the appointment of successor
Administrative Agent, and (ii) all payments, communications and
determinations provided to be made by, to or through Administrative Agent shall
instead be made by, to or through each Lender directly, until such time as
Requisite Lenders appoint a successor Administrative Agent in accordance with
this subsection 9.5A.  Upon the
acceptance of any appointment as Administrative Agent hereunder by a successor
Administrative Agent, that successor Administrative Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring Administrative Agent and the retiring Administrative Agent
shall be discharged from its duties and obligations under this Agreement (if
not already discharged as set forth above). 
After any retiring Agent’s resignation hereunder, the provisions of this
Section 9 shall inure to its benefit as to any actions taken or omitted to
be taken by it while it was an Agent under this Agreement.

 

B.                                    Successor Swing Line Lender.  Any resignation of Administrative Agent
pursuant to subsection 9.5A shall also constitute the resignation or
removal of BNP Paribas or its successor as Swing Line Lender, and any successor
Administrative Agent appointed pursuant to subsection 9.5A shall, upon its
acceptance of such appointment, become the successor Swing Line Lender for all
purposes hereunder.  In such event (i) Company
shall prepay any outstanding Swing Line Loans made by the retiring
Administrative Agent in its capacity as Swing Line Lender, (ii) upon such
prepayment, the retiring Administrative Agent and Swing Line Lender shall
surrender any Swing Line Note held by it to Company for cancellation, and (iii) if
so requested by the successor Administrative Agent and Swing Line Lender in
accordance with subsection 2.1E, Company shall issue a Swing Line Note to
the successor Administrative Agent and Swing Line Lender substantially in the
form of Exhibit VI annexed hereto, in the amount of the Swing Line
Loan Commitment then in effect and with other appropriate insertions.

 

115

 

9.6                               Collateral
Documents and Guaranty.

 

Each Lender (which term shall include, for purposes of this subsection 9.6,
any Lender in its capacity as a counterparty to a Hedge Agreement with Company
or one of its Subsidiaries) hereby further authorizes Administrative Agent, on
behalf of and for the benefit of Lenders, to enter into each Collateral
Document as secured party and to be the agent for and representative of Lenders
under the Guaranty, and each Lender agrees to be bound by the terms of each
Collateral Document and the Guaranty; provided that Administrative Agent
shall not (i) enter into or consent to any material amendment,
modification, termination or waiver of any provision contained in any
Collateral Document or the Guaranty or (ii) release any Collateral (except
as otherwise expressly permitted or required pursuant to the terms of this
Agreement or the applicable Collateral Document), in each case without the
prior consent of Requisite Lenders (or, if required pursuant to subsection 10.6,
all Lenders); provided  further, however, that, without
further written consent or authorization from Lenders, Administrative Agent may
execute any documents or instruments necessary to (a) release any Lien
encumbering any item of Collateral (1) that is the subject of a sale or
other disposition of assets (other than to an Affiliate of a Loan Party)
permitted by this Agreement, (2) that is permitted to secure other
Indebtedness pursuant to the terms hereof in connection with the incurrence of
such Indebtedness, (3) that is otherwise expressly contemplated by the
Loan Documents or (4) to which Requisite Lenders (or such other Lenders as
may be required to give such consent under subsection 10.6) have otherwise
consented or (b) release any Guarantor from the Guaranty as expressly
contemplated by the other Loan Documents or with respect to which Requisite
Lenders (or such other Lenders as may be required to give such consent under
subsection 10.6) have otherwise consented. 
Anything contained in any of the Loan Documents to the contrary
notwithstanding, Company, Administrative Agent and each Lender hereby agree
that (1) no Lender shall have any right individually to realize upon any
of the Collateral under any Collateral Document or to enforce the Guaranty, it
being understood and agreed that all powers, rights and remedies under the
Collateral Documents and the Guaranty may be exercised solely by Administrative
Agent for the benefit of Lenders in accordance with the terms of the Collateral
Documents and the Guaranty, and (2) in the event of a foreclosure by
Administrative Agent on any of the Collateral pursuant to a public or private
sale, Administrative Agent or any Lender may be the purchaser of any or all of
such Collateral at any such sale and Administrative Agent, as agent for and
representative of Lenders (but not any Lender or Lenders in its or their
respective individual capacities unless Requisite Lenders shall otherwise agree
in writing) shall be entitled, for the purpose of bidding and making settlement
or payment of the purchase price for all or any portion of the Collateral sold
at any such public sale, to use and apply any of the Obligations as a credit on
account of the purchase price for any Collateral payable by Administrative
Agent at such sale.

 

Without derogating from any other authority granted to Administrative
Agent herein or in the Collateral Documents or any other document relating
thereto, each Lender hereby specifically (i) authorizes Administrative
Agent to enter into pledge agreements pursuant to this subsection 9.6 with
respect to the Capital Stock of all existing and future first-tier Foreign Subsidiaries,
which pledge agreements may be governed by the laws of each of the
jurisdictions of formation of such Foreign Subsidiaries, including but not
limited to Mexican, British Virgin Islands, English, and Jamaican law,
respectively, as agent on behalf of each of Lenders, with the

 

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effect that Lenders each become a secured party thereunder or, where
relevant as agent and trustee with the effect that the Lenders each become
beneficiaries of the trust and Administrative Agent has all the rights, powers,
discretions, protections and exemptions from liability set out in the pledge
agreements and (ii) except in connection with any such pledge agreement
where Administrative Agent holds the security as agent and trustee for the
Lenders, appoints Administrative Agent as its attorney-in-fact granting it the
powers to execute each such pledge agreement and any registrations of the
security interest thereby created, in each case in its name and on its behalf,
with the effect that each Lender becomes a secured party thereunder.  With respect to each such pledge agreement,
Administrative Agent has the power to sub-delegate to third parties its powers
as attorney-in-fact of each Lender.

 

9.7                               Duties
of Other Agents.

 

To the extent that any Lender is identified in this Agreement as a
co-agent, such Lender shall not have any right, power, obligation, liability,
responsibility or duty under this Agreement other than those applicable to all
Lenders as such.  Without limiting the
foregoing, none of such Lenders shall have or be deemed to have a fiduciary
relationship with any Lender.

 

9.8                               Administrative
Agent May File Proofs of Claim.

 

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

 

(i)                                     to
file and prove a claim for the whole amount of principal and interest owing and
unpaid in respect of the Loans and any other Obligations that are owing and
unpaid and to file such other papers or documents as may be necessary or
advisable in order to have the claims of Lenders and Agents (including any
claim for the reasonable compensation, expenses, disbursements and advances of
Lenders and Agents and their agents and counsel and all other amounts due
Lenders and Agents under subsections 2.3 and 10.2) allowed in such judicial
proceeding, and

 

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

 

and any custodian, receiver, assignee, trustee, liquidator,
sequestrator or other similar official in any such judicial proceeding is
hereby authorized by each Lender to make such payments to Administrative Agent
and, in the event that Administrative Agent shall consent to the making of such
payments directly to Lenders, to pay to Administrative Agent any amount due for
the reasonable compensation, expenses, disbursements and advances of Agents and
their agents and counsel, and any other amounts due Agents under subsections
2.3 and 10.2.

 

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

 

Section 10.                                   MISCELLANEOUS

 

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

 

A.                                    General.  This
Agreement shall be binding upon the parties hereto and their respective
successors and assigns and shall inure to the benefit of the parties hereto and
the successors and assigns of Lenders (it being understood that Lenders’ rights
of assignment are subject to the further provisions of this subsection 10.1).  Neither Company’s rights or obligations
hereunder nor any interest therein may be assigned or delegated by Company
without the prior written consent of all Lenders (and any attempted assignment
or transfer by Company without such consent shall be null and void).  No sale, assignment or transfer or
participation of any Letter of Credit or any participation therein may be made
separately from a sale, assignment, transfer or participation of a corresponding
interest in the Revolving Loan Commitment and the Revolving Loans of the
Revolving Lender effecting such sale, assignment, transfer or
participation.  Anything contained herein
to the contrary notwithstanding, except as provided in subsection 2.1A(iii) and
subsection 10.5, the Swing Line Loan Commitment and the Swing Line Loans
of Swing Line Lender may not be sold, assigned or transferred as described
below to any Person other than a successor Administrative Agent and Swing Line
Lender to the extent contemplated by subsection 9.5.  Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties
hereto, their respective successors and assigns permitted hereby and, to the
extent expressly contemplated hereby, the Affiliates of each of Administrative
Agent and Lenders and Indemnitees) any legal or equitable right, remedy or
claim under or by reason of this Agreement.

 

B.                                    Assignments.

 

(i)                                     Amounts
and Terms of Assignments.  Any Lender
may assign to one or more Eligible Assignees all or any portion of its rights
and obligations under this Agreement; provided that (a), except (1) in
the case of an assignment of the entire remaining amount of the assigning
Lender’s rights and obligations under this Agreement or (2) in the case of
an assignment to a Lender or an Affiliate of a Lender or an Approved Fund of a
Lender, the aggregate amount of the Revolving Loan Exposure or Term Loan
Exposure, as the case may be, of the assigning Lender and the assignee subject
to each such assignment shall not be less than $1,000,000, in the case of any
assignment of a Revolving Loan, or $1,000,000, in the case of any assignment of
a Term Loan (or $250,000 in the case of any assignment of a Term Loan by a
Lender or an Approved Fund to a Lender or an Approved Fund that in each case
has, or is affiliated with or managed by a Lender with Affiliates and/or
Approved Funds that collectively have, aggregate Term Loan Exposure of not less
than $1,000,000), unless each of

 

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Administrative Agent and, so long as no Event of Default has occurred
and is continuing, Company otherwise consents (each such consent not to be
unreasonably withheld or delayed), (b) each partial assignment shall be
made as an assignment of a proportionate part of all the assigning Lender’s
rights and obligations under this Agreement with respect to the Loan or the
Commitment assigned, and any assignment of all or any portion of a Revolving
Loan Commitment, Revolving Loan or Letter of Credit participation shall be made
only as an assignment of the same proportionate part of the assigning Lender’s
Revolving Loan Commitment, Revolving Loans and Letter of Credit participations,
(c) the parties to each assignment shall execute and deliver to
Administrative Agent an Assignment Agreement, together with a processing and
recordation fee of $3,500 (unless the assignee is an Affiliate or an Approved
Fund of the assignor, in which case no fee shall be required), and the Eligible
Assignee, if it shall not be a Lender, shall deliver to Administrative Agent
information reasonably requested by Administrative Agent, including such forms,
certificates or other evidence, if any, with respect to United States federal
income tax withholding matters as the assignee under such Assignment Agreement
may be required to deliver to Administrative Agent pursuant to subsection 2.7B(iii) and
(d), except in the case of an assignment to another Lender, an Affiliate of a
Lender or an Approved Fund of a Lender, Administrative Agent and, if no Event
of Default has occurred and is continuing, Company, shall have consented
thereto (which consent shall not be unreasonably withheld).

 

Upon such execution, delivery and consent,
from and after the effective date specified in such Assignment Agreement,
(y) the assignee thereunder shall be a party hereto and, to the extent
that rights and obligations hereunder have been assigned to it pursuant to such
Assignment Agreement, shall have the rights and obligations of a Lender
hereunder and (z) the assigning Lender thereunder shall, to the extent
that rights and obligations hereunder have been assigned by it pursuant to such
Assignment Agreement, relinquish its rights (other than any rights which
survive the termination of this Agreement under subsection 10.9B) and be
released from its obligations under this Agreement (and, in the case of an
Assignment Agreement covering all or the remaining portion of an assigning
Lender’s rights and obligations under this Agreement, such Lender shall cease
to be a party hereto; provided that, anything contained in any of the
Loan Documents to the contrary notwithstanding, if such Lender is an Issuing
Lender such Lender shall continue to have all rights and obligations of an
Issuing Lender until the cancellation or expiration of any Letters of Credit
issued by it and the reimbursement of any amounts drawn thereunder).  The assigning Lender shall, upon the
effectiveness of such assignment or as promptly thereafter as practicable,
surrender its Notes, if any, to Administrative Agent for cancellation, and
thereupon new Notes shall, if so requested by the assignee and/or the assigning
Lender in accordance with subsection 2.1E, be issued to the assignee
and/or to the assigning Lender, substantially in the form of Exhibit IV,
Exhibit V or Exhibit VI annexed hereto, as the case may
be, with appropriate insertions, to reflect the amounts of the new Commitments
and/or outstanding Revolving Loans and/or outstanding Term Loans, as the case
may be, of the assignee and/or the assigning Lender.  Other than as provided in subsection 2.1A(iii) and
subsection 10.5, any assignment or transfer by a Lender of rights or
obligations under this Agreement that

 

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does not comply with this subsection 10.1B shall be treated for
purposes of this Agreement as a sale by such Lender of a participation in such
rights and obligations in accordance with subsection 10.1C.

 

(ii)                                  Acceptance
by Administrative Agent; Recordation in Register.  Upon its receipt of an Assignment Agreement
executed by an assigning Lender and an assignee representing that it is an
Eligible Assignee, together with the processing and recordation fee referred to
in subsection 10.1B(i) and any forms, certificates or other evidence
with respect to United States federal income tax withholding matters that such
assignee may be required to deliver to Administrative Agent pursuant to subsection 2.7B(iii),
Administrative Agent shall, if Administrative Agent and Company have consented
to the assignment evidenced thereby (in each case to the extent such consent is
required pursuant to subsection 10.1B(i)), (a) accept such Assignment
Agreement by executing a counterpart thereof as provided therein (which
acceptance shall evidence any required consent of Administrative Agent to such
assignment), (b) record the information contained therein in the Register,
and (c) give prompt notice thereof to Company.  Administrative Agent shall maintain a copy of
each Assignment Agreement delivered to and accepted by it as provided in this
subsection 10.1B(ii).

 

(iii)                               Deemed
Consent by Company.  If the consent
of Company 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 subsection 10.1B(i)), Company shall be
deemed to have given its consent five Business Days after the date written
notice thereof has been delivered by the assigning Lender (through
Administrative Agent) unless such consent is expressly refused by Company prior
to such fifth Business Day.

 

C.                                    Participations.  Any
Lender may, without the consent of, or notice to, Company or Administrative
Agent, sell participations to one or more Persons (other than a natural Person
or Company or any of its Affiliates) in all or a portion of such Lender’s
rights and/or obligations under this Agreement; provided that (i) such
Lender’s obligations under this Agreement shall remain unchanged, (ii) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (iii) Company, Administrative Agent
and Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this Agreement.  Any agreement or instrument pursuant to which
a Lender sells such a participation shall provide that such Lender shall retain
the sole right to enforce this Agreement and to approve any amendment,
modification or waiver of any provision of this Agreement; provided that
such agreement or instrument may provide that such Lender will not, without the
consent of the Participant, agree to any amendment, modification or waiver
directly affecting (i) the extension of the scheduled final maturity date
of any Loan allocated to such participation or (ii) a reduction of the
principal amount of or the rate of interest payable on any Loan allocated to
such participation.  Subject to the
further provisions of this subsection 10.1C, Company agrees that each
Participant shall be entitled to the benefits of subsections 2.6D and 2.7 to
the same extent as if it were the assigning Lender.  To the extent permitted by law, each
Participant also shall be entitled to the benefits of subsection 10.4 as
though it were a Lender, provided such Participant agrees to be subject to subsection 10.5
as though it were a Lender. A

 

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Participant shall not be entitled to receive any greater payment under
subsections 2.6D and 2.7 than the assigning Lender would have been entitled to
receive with respect to the participation sold to such Participant.  In addition, a Participant that would be a
Non-US Lender if it were a Lender shall not be entitled to the benefits of subsection 2.7
unless Company is notified of the participation sold to such Participant and
such Participant agrees, for the benefit of Company, to comply with subsection 2.7B(iii) as
though it were a Lender.

 

D.                                    Pledges and Assignments.  Any Lender may at any time pledge or assign a
security interest in all or any portion of its Loans, and the other Obligations
owed to such Lender, to secure obligations of such Lender, including without
limitation any pledge or assignment to secure obligations to any Federal
Reserve Bank; provided that (i) no Lender shall be relieved of any
of its obligations hereunder as a result of any such assignment or pledge and (ii) in
no event shall any assignee or pledgee be considered to be a “Lender” or be
entitled to require the assigning Lender to take or omit to take any action hereunder.

 

E.                                      Information.  Each Lender
may furnish any information concerning Holdings and its Subsidiaries in the
possession of that Lender from time to time to assignees and participants
(including prospective assignees and participants), subject to subsection 10.19.

 

F.                                      Agreements of Lenders.  Each Lender listed on the signature pages hereof
hereby agrees, and each Lender that becomes a party hereto pursuant to an
Assignment Agreement shall be deemed to agree, (i) that it is an Eligible
Assignee described in clause (ii) of the definition thereof; (ii) that
it has experience and expertise in the making of or purchasing loans such as
the Loans; and (iii) that it will make or purchase Loans for its own
account in the ordinary course of its business and without a view to
distribution of such Loans within the meaning of the Securities Act or the
Exchange Act or other federal securities laws (it being understood that,
subject to the provisions of this subsection 10.1, the disposition of such
Loans or any interests therein shall at all times remain within its exclusive
control).

 

10.2                        Expenses.

 

Whether or not the transactions contemplated hereby shall be
consummated, Company agrees to pay promptly (i) all reasonable and
documented out-of-pocket costs and expenses of negotiation, preparation and
execution of the Loan Documents and any consents, amendments, waivers or other
modifications thereto; (ii) all costs and expenses of furnishing all
opinions by counsel for Company (including any opinions requested by Agents or
Lenders as to any legal matters arising hereunder) and of Company’s performance
of and compliance with all agreements and conditions on its part to be
performed or complied with under this Agreement and the other Loan Documents
including with respect to confirming compliance with environmental, insurance
and solvency requirements; (iii) all reasonable and documented fees,
expenses and disbursements of outside counsel to Administrative Agent in
connection with the negotiation, preparation, execution and administration of
the Loan Documents and any consents, amendments, waivers or other modifications
thereto and any other documents or matters requested by Company; (iv) all
costs and expenses of creating and perfecting Liens in favor of Administrative
Agent on behalf of Lenders pursuant to any Collateral Document, including
filing and recording fees, expenses and taxes, stamp or documentary taxes,
search fees, title insurance

 

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premiums, and reasonable and documented fees, expenses and
disbursements of counsel to Administrative Agent and of counsel providing any
opinions that Administrative Agent or Requisite Lenders may request in respect
of the Collateral Documents or the Liens created pursuant thereto; (v) all
costs and expenses (including the reasonable fees, expenses and disbursements
of any auditors, accountants or appraisers and any environmental or other
consultants, advisors and agents employed or retained by Administrative Agent
or its counsel) of obtaining and reviewing any environmental audits or reports
provided for under subsection 6.9; (vi) all costs and expenses
incurred by Administrative Agent in connection with the custody or preservation
of any of the Collateral; (vii) all other out-of-pocket costs and expenses
incurred by Administrative Agent in connection with the syndication of the
Commitments; (viii) all out-of-pocket costs and expenses, including
reasonable attorneys’ fees (including allocated costs of internal counsel) and
fees, costs and expenses of accountants, advisors and consultants, incurred by
Administrative Agent and its counsel relating to efforts to (a) evaluate
or assess any Loan Party, its business or financial condition and (b) protect,
evaluate, assess or dispose of any of the Collateral; and (ix) all
out-of-pocket costs and expenses, including reasonable and documented outside
attorneys’ fees, fees, costs and expenses of accountants, advisors and
consultants and costs of settlement, incurred by Administrative Agent and Lenders
in enforcing any Obligations of or in collecting any payments due from any Loan
Party hereunder or under the other Loan Documents (including in connection with
the sale of, collection from, or other realization upon any of the Collateral
or the enforcement of the Loan Documents) or in connection with any refinancing
or restructuring of the credit arrangements provided under this Agreement in
the nature of a “work-out” or pursuant to any insolvency or bankruptcy
proceedings.

 

10.3                        Indemnity.

 

In addition to the payment of expenses pursuant to subsection 10.2,
whether or not the transactions contemplated hereby shall be consummated,
Company agrees to defend (subject to Indemnitees’ selection of counsel),
indemnify, pay and hold harmless Agents and Lenders (including Issuing
Lenders), and the officers, directors, employees, agents, advisors and
Affiliates of Agents and Lenders (collectively called the “Indemnitees”), from and against any and
all Indemnified Liabilities (as hereinafter defined); provided that
Company shall not have any obligation to any Indemnitee hereunder with respect
to any Indemnified Liabilities to the extent such Indemnified Liabilities arise
solely from the gross negligence or willful misconduct of that Indemnitee as
determined by a final judgment of a court of competent jurisdiction.

 

As used herein, “Indemnified
Liabilities” means, collectively, any and all liabilities,
obligations, losses, damages (including natural resource damages), penalties,
actions, judgments, suits, claims (including Environmental Claims), costs
(including the costs of any investigation, study, sampling, testing, abatement,
cleanup, removal, remediation or other response action necessary to remove,
remediate, clean up or abate any Hazardous Materials Activity), expenses and
disbursements of any kind or nature whatsoever (including the reasonable fees
and disbursements of counsel for Indemnitees in connection with any
investigative, administrative or judicial proceeding commenced or threatened by
any Person, whether or not any such Indemnitee shall be designated as a party
or a potential party thereto, and any fees or expenses incurred by Indemnitees
in enforcing this indemnity), whether direct, indirect or consequential and
whether based on any federal, state or foreign laws, statutes, rules

 

122

 

or regulations (including securities and commercial laws, statutes, rules or
regulations and Environmental Laws), on common law or equitable cause or on
contract or otherwise, that may be imposed on, incurred by, or asserted against
any such Indemnitee, in any manner relating to or arising out of (i) this
Agreement, the other Loan Documents or the Related Agreements or the
transactions contemplated hereby or thereby (including Lenders’ agreement to
make the Loans hereunder or the use or intended use of the proceeds thereof or
the issuance of Letters of Credit hereunder or the use or intended use of any
thereof, the failure of an Issuing Lender to honor a drawing under a Letter of
Credit as a result of any act or omission, whether rightful or wrongful, of any
present or future de jure or de facto Government Authority or any enforcement
of any of the Loan Documents (including any sale of, collection from, or other
realization upon any of the Collateral or the enforcement of the Guaranty)), (ii) the
statements contained in the commitment letter delivered by any Lender to
Company with respect thereto, or (iii) any Environmental Claim or any
Releases at or from any Facilities prior to termination of this Agreement
except to the extent attributable to the gross negligence or willful misconduct
of any Indemnitee.

 

To the extent that the undertakings to defend, indemnify, pay and hold
harmless set forth in this subsection 10.3 may be unenforceable in whole
or in part because they are violative of any law or public policy, Company
shall contribute the maximum portion that it is permitted to pay and satisfy
under applicable law to the payment and satisfaction of all Indemnified
Liabilities incurred by Indemnitees or any of them.

 

10.4                        Set-Off.

 

In addition to any rights now or hereafter granted under applicable law
and not by way of limitation of any such rights, upon the occurrence and during
the continuation of any Event of Default each of Lenders and their Affiliates
is hereby authorized by Company at any time or from time to time, without
notice to Company or to any other Person, any such notice being hereby
expressly waived, to set off and to appropriate and to apply any and all deposits
(general or special, time or demand, provisional or final, including
Indebtedness evidenced by certificates of deposit, whether matured or
unmatured, but not including trust accounts) and any other Indebtedness at any
time held or owing by that Lender or any Affiliate of that Lender to or for the
credit or the account of Company and each other Loan Party against and on
account of the Obligations of Company or any other Loan Party to that Lender
(or any Affiliate of that Lender) or to any other Lender (or any Affiliate of
any other Lender) under this Agreement, the Letters of Credit and
participations therein and the other Loan Documents, including all claims of
any nature or description arising out of or connected with this Agreement, the
Letters of Credit and participations therein or any other Loan Document,
irrespective of whether or not (i) that Lender shall have made any demand
hereunder or (ii) the principal of or the interest on the Loans or any
amounts in respect of the Letters of Credit or any other amounts due hereunder
shall have become due and payable pursuant to Section 8 and although said
obligations and liabilities, or any of them, may be contingent or unmatured.

 

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10.5                        Ratable
Sharing.

 

Lenders hereby agree among themselves that if any of them shall,
whether by voluntary or mandatory payment (other than a payment or prepayment
of Loans made and applied in accordance with the terms of this Agreement), by
realization upon security, through the exercise of any right of set-off or
banker’s lien, by counterclaim or cross action or by the enforcement of any
right under the Loan Documents or otherwise, or as adequate protection of a
deposit treated as cash collateral under the Bankruptcy Code, receive payment
or reduction of a proportion of the aggregate amount of principal, interest,
amounts payable in respect of Letters of Credit, fees and other amounts then
due and owing to that Lender hereunder or under the other Loan Documents
(collectively, the “Aggregate Amounts Due”
to such Lender) that is greater than the proportion received by any other
Lender in respect of the Aggregate Amounts Due to such other Lender, then the
Lender receiving such proportionately greater payment shall, unless such
proportionately greater payment is required by the terms of this Agreement, (i) notify
Administrative Agent and each other Lender of the receipt of such payment and (ii) apply
a portion of such payment to purchase assignments (which it shall be deemed to
have purchased from each seller of an assignment simultaneously upon the
receipt by such seller of its portion of such payment) of the Aggregate Amounts
Due to the other Lenders so that all such recoveries of Aggregate Amounts Due
shall be shared by all Lenders in proportion to the Aggregate Amounts Due to
them; provided that (A) if all or part of such proportionately
greater payment received by such purchasing Lender is thereafter recovered from
such Lender upon the bankruptcy or reorganization of Company or otherwise,
those purchases shall be rescinded and the purchase prices paid for such
assignments shall be returned to such purchasing Lender ratably to the extent
of such recovery, but without interest and (B) the foregoing provisions
shall not apply to (1) any payment made by Company pursuant to and in
accordance with the express terms of this Agreement or (2) any payment
obtained by a Lender as consideration for the assignment (other than an
assignment pursuant to this subsection 10.5) of or the sale of a participation
in any of its Obligations to any Eligible Assignee or Participant pursuant to
subsection 10.1B.  Company expressly
consents to the foregoing arrangement and agrees that any purchaser of an
assignment so purchased may exercise any and all rights of a Lender as to such
assignment as fully as if that Lender had complied with the provisions of subsection 10.1B
with respect to such assignment.  In
order to further evidence such assignment (and without prejudice to the
effectiveness of the assignment provisions set forth above), each purchasing
Lender and each selling Lender agree to enter into an Assignment Agreement at
the request of a selling Lender or a purchasing Lender, as the case may be, in
form and substance reasonably satisfactory to each such Lender.

 

10.6                        Amendments
and Waivers.

 

No amendment, modification, termination or waiver of any provision of
this Agreement or of the Notes, and no consent to any departure by Company
therefrom, shall in any event be effective without the written concurrence of
Requisite Lenders; provided that no such amendment, modification,
termination, waiver or consent shall, without the consent of:

 

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(a)                                  each Lender
with Obligations directly affected (whose consent shall be sufficient for any
such amendment, modification, termination or waiver without the consent of
Requisite Lenders) (1) reduce the principal amount of any Loan, (2) postpone
the scheduled final maturity date of any Loan or postpone the date or reduce the
amount of any scheduled payment (but not prepayment) of principal of any Loan, (3) postpone
the date on which any interest or any fees are payable, (4) decrease the
interest rate borne by any Loan (other than any waiver of any increase in the
interest rate applicable to any of the Loans pursuant to subsection 2.2E)
or the amount of any fees payable hereunder (other than any waiver of any
increase in the fees applicable to Letters of Credit pursuant to subsection 3.2
following an Event of Default) (5) reduce the amount or postpone the due
date of any amount payable in respect of any Letter of Credit, (6) extend
the expiration date of any Letter of Credit beyond the Revolving Loan
Commitment Termination Date, (7) extend the Revolving Commitment
Termination Date or (8) change in any manner the obligations of Revolving
Lenders relating to the purchase of participations in Letters of Credit;

 

(b)                                 each Lender, (1) change
in any manner the definition of “Class” or the definition of “Pro Rata Share”
or the definition of “Requisite Class Lenders” or the definition of “Requisite
Lenders” (except for any changes resulting solely from an increase in the
aggregate amount of the Commitments approved by Requisite Lenders), (2) change
in any manner any provision of this Agreement that, by its terms, expressly
requires the approval or concurrence of all Lenders, (3) increase the
maximum duration of Interest Periods permitted hereunder, (4) release any
Lien granted in favor of Administrative Agent with respect to all or substantially
all of the Collateral or release all or substantially all of the Guarantors
from their obligations under the Guaranty, in each case other than in
accordance with the terms of the Loan Documents, or (5) change in any
manner or waive the provisions contained in subsection 8.1 or this subsection 10.6.

 

In addition, no amendment, modification, termination or waiver of any
provision (i) of any Note shall be effective without the written
concurrence of the Lender which is the holder of that Note, (ii) of subsection 2.1A(iii) or
of any other provision of this Agreement relating to the Swing Line Loan
Commitment or the Swing Line Loans shall be effective without the written
concurrence of Swing Line Lender, (iii) of Section 3 shall be
effective without the written concurrence of Administrative Agent and, with
respect to the purchase of participations in Letters of Credit, without the
written concurrence of each Issuing Lender that has issued an outstanding
Letter of Credit or has not been reimbursed for a payment under a Letter of
Credit, (iv) of Section 9 or of any other provision of this Agreement
which, by its terms, expressly requires the approval or concurrence of
Administrative Agent shall be effective without the written concurrence of
Administrative Agent, (v) of subsection 2.4 that has the effect of
changing any voluntary or mandatory prepayments, or Commitment reductions
applicable to a Class in a manner that disproportionately disadvantages
such Class relative to any other Class shall be effective without the
written concurrence of Requisite Class Lenders of such affected Class (it
being understood and agreed that any amendment, modification, termination or
waiver

 

125

 

of any such provision which only postpones or reduces any voluntary or
mandatory prepayment, or Commitment reduction from those set forth in subsection 2.4
with respect to one Class but not any other Class shall be deemed to
disproportionately disadvantage such one Class but not to disproportionately
disadvantage any such other Class for purposes of this clause (v)), (vi) that
increases the amount of a Commitment of a Lender shall be effective without the
consent of such Lender and (vii) that increases the maximum amount of
Letters of Credit shall be effective without the consent of Revolving Lenders
constituting Requisite Class Lenders.

 

Administrative Agent may, but shall have no obligation to, with the
concurrence of any Lender, execute amendments, modifications, waivers or
consents on behalf of that Lender.  Any
waiver or consent shall be effective only in the specific instance and for the
specific purpose for which it was given. 
No notice to or demand on Company in any case shall entitle Company to
any other or further notice or demand in similar or other circumstances.  Any amendment, modification, termination,
waiver or consent effected in accordance with this subsection 10.6 shall
be binding upon each Lender at the time outstanding, each future Lender and, if
signed by Company, on Company.

 

10.7                        Independence
of Covenants.

 

All covenants hereunder shall be given independent effect so that if a
particular action or condition is not permitted by any of such covenants, the
fact that it would be permitted by an exception to, or would otherwise be
within the limitations of, another covenant shall not avoid the occurrence of
an Event of Default or Potential Event of Default if such action is taken or
condition exists.

 

10.8                        Notices;
Effectiveness of Signatures.

 

Unless otherwise specifically provided herein, any notice or other
communication herein required or permitted to be given shall be in writing and
may be personally served, or sent by telefacsimile or United States mail or
courier service and shall be deemed to have been given when delivered in person
or by courier service, upon receipt of telefacsimile in complete and legible
form, or three Business Days after depositing it in the United States mail with
postage prepaid and properly addressed; provided that notices to
Administrative Agent, Swing Line Lender and any Issuing Lender shall not be
effective until received.  For the
purposes hereof, the address of each party hereto shall be as set forth under
such party’s name on the signature pages hereof or (i) as to Company
and Administrative Agent, such other address as shall be designated by such
Person in a written notice delivered to the other parties hereto and (ii) as
to each other party, such other address as shall be designated by such party in
a written notice delivered to Administrative Agent.  Electronic mail and Internet and intranet
websites may be used to distribute routine communications, such as financial
statements and other information; provided, however, that no
signature with respect to any notice, request, agreement, waiver, amendment or
other document that is intended to have binding effect may be sent by
electronic mail.

 

126

 

Loan Documents and notices under the Loan Documents may be transmitted
and/or signed by telefacsimile.  The
effectiveness of any such documents and signatures shall, subject to applicable
law, have the same force and effect as an original copy with manual signatures
and shall be binding on all Loan Parties, Agents and Lenders.  Administrative Agent may also require that
any such documents and signature be confirmed by a manually-signed copy
thereof; provided, however, that the failure to request or
deliver any such manually-signed copy shall not affect the effectiveness of any
facsimile document or signature.

 

10.9                        Survival
of Representations, Warranties and Agreements.

 

A.                                    All representations,
warranties and agreements made herein shall survive the execution and delivery
of this Agreement and the making of the Loans and the issuance of the Letters
of Credit hereunder.

 

B.                                    Notwithstanding anything in
this Agreement or implied by law to the contrary, the agreements of Company set
forth in subsections 2.6D, 2.7, 10.2, 10.3, 10.4, 10.17 and 10.18 and the
agreements of Lenders set forth in subsections 9.2C, 9.4, 10.5, 10.17 and 10.18
shall survive the payment of the Loans, the cancellation or expiration of the
Letters of Credit and the reimbursement of any amounts drawn thereunder, and
the termination of this Agreement.

 

10.10                 Failure
or Indulgence Not Waiver; Remedies Cumulative.

 

No failure or delay on the part of an Agent or any Lender in the
exercise of any power, right or privilege hereunder or under any other Loan
Document shall impair such power, right or privilege or be construed to be a
waiver of any default or acquiescence therein, nor shall any single or partial
exercise of any such power, right or privilege preclude other or further
exercise thereof or of any other power, right or privilege.  All rights and remedies existing under this
Agreement and the other Loan Documents are cumulative to, and not exclusive of,
any rights or remedies otherwise available.

 

10.11                 Marshalling;
Payments Set Aside.

 

Neither any Agent nor any Lender shall be under any obligation to
marshal any assets in favor of Company or any other party or against or in
payment of any or all of the Obligations. 
To the extent that Company makes a payment or payments to Administrative
Agent or Lenders (or to Administrative Agent for the benefit of Lenders), or
Agents or Lenders enforce any security interests or exercise their rights of
setoff, and such payment or payments or the proceeds of such enforcement or
setoff or any part thereof are subsequently invalidated, declared to be
fraudulent or preferential, set aside and/or required to be repaid to a
trustee, receiver or any other party under any bankruptcy law, any other state
or federal law, common law or any equitable cause, then, to the extent of such
recovery, the obligation or part thereof originally intended to be satisfied,
and all Liens, rights and remedies therefor or related thereto, shall be
revived and continued in full force and effect as if such payment or payments
had not been made or such enforcement or setoff had not occurred.

 

127

 

10.12                 Severability.

 

In case any provision in or obligation under this Agreement or the
Notes shall be invalid, illegal or unenforceable in any jurisdiction, the
validity, legality and enforceability of the remaining provisions or
obligations, or of such provision or obligation in any other jurisdiction,
shall not in any way be affected or impaired thereby.

 

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

 

The obligations of Lenders hereunder are several and no Lender shall be
responsible for the obligations or Commitments of any other Lender
hereunder.  Nothing contained herein or
in any other Loan Document, and no action taken by Lenders pursuant hereto or
thereto, shall be deemed to constitute Lenders, or Lenders and Company, as a
partnership, an association, a Joint Venture or any other kind of entity. The
amounts payable at any time hereunder to each Lender shall be a separate and
independent debt, and, subject to subsection 9.6, each Lender shall be
entitled to protect and enforce its rights arising out of this Agreement and it
shall not be necessary for any other Lender to be joined as an additional party
in any proceeding for such purpose.

 

To the extent permitted by law, Company shall not assert, and hereby
waives, any claim against any Indemnitee, on any theory of liability, for
special, indirect, consequential or punitive damages (as opposed to direct or
actual damages) arising out of, in connection with or as a result of this
Agreement (including, without limitation, subsection 2.1C hereof), any
other Loan Document, any transaction contemplated by the Loan Documents, any
Loan or the use of proceeds thereof.  No
Indemnitee shall be liable for any damages arising from the use by unintended
recipients of any information or other materials distributed by it through
telecommunications, electronic or other information transmission systems in
connection with the Loan Documents or the transactions contemplated thereby.

 

10.14                 Release
of Security Interest or Guaranty.

 

Upon the proposed sale or other disposition of any Collateral (other
than Inventory in the ordinary course of business) to any Person (other than an
Affiliate of Company) that is permitted by the Loan Documents or to which
Requisite Lenders have otherwise consented, or the sale or other disposition of
all of the Capital Stock of a Subsidiary Guarantor to any Person (other than an
Affiliate of Company) that is permitted by the Loan Documents or to which
Requisite Lenders have otherwise consented, for which a Loan Party desires to
obtain a security interest release or a release of the Guaranty from
Administrative Agent, such Loan Party shall deliver an Officer’s Certificate (i) stating
that the Collateral or the Capital Stock subject to such disposition is being
sold or otherwise disposed of in compliance with the terms hereof and (ii) specifying
the Collateral or Capital Stock being sold or otherwise disposed of in the
proposed transaction.  Upon the receipt
of such Officer’s Certificate, Administrative Agent shall, at such Loan Party’s
expense, so long as Administrative Agent (a) has no reason to believe that
the facts stated in such Officer’s Certificate are not true and correct and
(b), if the sale or other disposition of such item of Collateral or Capital Stock
constitutes an Asset Sale, shall have received

 

128

 

evidence reasonably satisfactory to it that arrangements have been made
for delivery of the Net Asset Sale Proceeds if and as required by subsection 2.4,
execute and deliver such releases of its security interest in such Collateral
or such Guaranty, as may be reasonably requested by such Loan Party.

 

10.15                 Applicable
Law.

 

THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS
(EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN ANY SUCH LOAN DOCUMENT), AND THE
RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE
GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 OF
THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

 

10.16                 Construction
of Agreement; Nature of Relationship.

 

Each of the parties hereto acknowledges that (i) it has been
represented by counsel in the negotiation and documentation of the terms of
this Agreement, (ii) it has had full and fair opportunity to review and
revise the terms of this Agreement, (iii) this Agreement has been drafted
jointly by all of the parties hereto, and (iv) neither Administrative
Agent nor any Lender or other Agent has any fiduciary relationship with or duty
to Company arising out of or in connection with this Agreement or any of the
other Loan Documents, and the relationship between Administrative Agent, the
other Agents and Lenders, on one hand, and Company, on the other hand, in
connection herewith or therewith is solely that of debtor and creditor.  Accordingly, each of the parties hereto
acknowledges and agrees that the terms of this Agreement shall not be construed
against or in favor of another party.

 

10.17                 Consent
to Jurisdiction and Service of Process.

 

ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST
COMPANY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT, OR ANY OBLIGATIONS HEREUNDER AND THEREUNDER, MAY BE BROUGHT IN
ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE, COUNTY AND
CITY OF NEW YORK.  BY EXECUTING AND
DELIVERING THIS AGREEMENT, COMPANY, FOR ITSELF AND IN CONNECTION WITH ITS
PROPERTIES, IRREVOCABLY

 

(I)                                    ACCEPTS
GENERALLY AND UNCONDITIONALLY THE NONEXCLUSIVE JURISDICTION AND VENUE OF SUCH
COURTS;

 

(II)                                WAIVES
ANY DEFENSE OF FORUM NON CONVENIENS;

 

129

 

(III)                            AGREES THAT SERVICE OF ALL
PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED
OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO COMPANY AT ITS ADDRESS PROVIDED
IN ACCORDANCE WITH SUBSECTION 10.8;

 

(IV)                           AGREES
THAT SERVICE AS PROVIDED IN CLAUSE (III) ABOVE IS SUFFICIENT TO CONFER PERSONAL
JURISDICTION OVER COMPANY IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE
CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT;

 

(V)                               AGREES
THAT LENDERS RETAIN THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY
LAW OR TO BRING PROCEEDINGS AGAINST COMPANY IN THE COURTS OF ANY OTHER
JURISDICTION; AND

 

(VI)                           AGREES
THAT THE PROVISIONS OF THIS SUBSECTION 10.17 RELATING TO JURISDICTION AND
VENUE SHALL BE BINDING AND ENFORCEABLE TO THE FULLEST EXTENT PERMISSIBLE UNDER
NEW YORK GENERAL OBLIGATIONS LAW SECTION 5-1402 OR OTHERWISE.

 

10.18                 Waiver
of Jury Trial.

 

EACH OF THE PARTIES TO THIS AGREEMENT HEREBY
AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF
ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY OF THE OTHER LOAN
DOCUMENTS OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS
LOAN TRANSACTION OR THE LENDER/BORROWER RELATIONSHIP THAT IS BEING ESTABLISHED.  The scope of this waiver is intended to be
all-encompassing of any and all disputes that may be filed in any court and
that relate to the subject matter of this transaction, including contract
claims, tort claims, breach of duty claims and all other common law and
statutory claims.  Each party hereto
acknowledges that this waiver is a material inducement to enter into a business
relationship, that each has already relied on this waiver in entering into this
Agreement, and that each will continue to rely on this waiver in their related
future dealings.  Each party hereto
further warrants and represents that it has reviewed this waiver with its legal
counsel and that it knowingly and voluntarily waives its jury trial rights
following consultation with legal counsel. 
THIS WAIVER IS IRREVOCABLE, MEANING
THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A
MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SUBSECTION 10.18 AND
EXECUTED BY EACH OF THE PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY
SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT
OR ANY OF THE OTHER LOAN DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS
RELATING TO THE LOANS MADE HEREUNDER.  In the event of litigation, this Agreement may
be filed as a written consent to a trial by the court.

 

130

 

10.19                 Confidentiality.

 

Each Lender shall hold all non-public information obtained pursuant to
the requirements of this Agreement in confidence in accordance with such Lender’s
customary procedures for handling confidential information of this nature, it
being understood and agreed by Company that in any event a Lender may
make disclosures (a) to its and its Affiliates’ directors, officers,
employees and agents, including accountants, legal counsel and other advisors
(it being understood that the Persons to whom such disclosure is made will be
informed of the confidential nature of such information and will agree to keep
such information confidential), (b) to the extent requested by any
Government Authority, (c) to the extent required by applicable laws or
regulations or by any valid subpoena or similar legal process, (d) to any
other party to this Agreement, (e) in connection with the exercise of any
remedies hereunder or any suit, action or proceeding relating to this Agreement
or the enforcement of rights hereunder, (f) subject to an agreement
containing provisions substantially the same as those of this subsection 10.19,
to (i) any Eligible Assignee of or participant in, or any prospective
Eligible Assignee of or Participant in, any of its rights or obligations under
this Agreement or (ii) any direct or indirect contractual counterparty or
prospective counterparty (or such contractual counterparty’s or prospective
counterparty’s professional advisor) to any credit derivative transaction
relating to obligations of Company, (g) with the prior written consent of
Company, (h) to the extent such information (i) becomes publicly
available other than as a result of a breach of this subsection 10.19 or (ii) becomes
available to Administrative Agent or any Lender on a nonconfidential basis from
a source other than Company or another party to this Agreement or (i) to
the National Association of Insurance Commissioners or any other similar
organization or any nationally recognized rating agency that agrees to maintain
the confidentiality of such information and requires access to information
about a Lender’s or its Affiliates’ investment portfolio in connection with
ratings issued with respect to such Lender or its Affiliates; provided
that no written or oral communications from counsel to an Agent and no
information that is or is designated as privileged or as attorney work product
may be disclosed to any Person unless such Person is a Lender or a Participant
hereunder; provided, further that, with respect to disclosures
described in clauses (b) and (c) hereof, unless specifically
prohibited by applicable law or court order, each Lender shall notify Company
of any request by any Government Authority or representative thereof (other
than any such request in connection with any examination of the financial
condition of such Lender by such Government Authority) for disclosure of any
such non-public information, or any valid subpoena or similar legal process
requiring such disclosure, prior to disclosure of such information; and provided,
further that in no event shall any Lender be obligated or required to
return any materials furnished by Company or any of its Subsidiaries.  In addition, Administrative Agent and Lenders
may disclose the existence of this Agreement and information about this
Agreement to market data collectors, similar service providers to the lending
industry, and service providers to Administrative Agent and Lenders, and after
the date of the IPO, Administrative Agent or any of its Affiliates may place
customary “tombstone” advertisements relating hereto in publications (including
publications circulated in electronic form) of its choice at its own expense.

 

131

 

10.20                 Counterparts;
Effectiveness.

 

This Agreement and any amendments, waivers, consents or supplements
hereto or in connection herewith may be executed in any number of counterparts
and by different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed an original, but all such counterparts
together shall constitute but one and the same instrument; signature pages may
be detached from multiple separate counterparts and attached to a single
counterpart so that all signature pages are physically attached to the
same document.  This Agreement shall
become effective upon the execution of a counterpart hereof by each of the
parties hereto.

 

10.21                 Acknowledgement
by Company.

 

Company hereby acknowledges and agrees that each of the Collateral
Documents to which it is a party or otherwise bound shall continue in full
force and effect and that all of its obligations thereunder shall be valid and
enforceable and shall not be impaired, novated or limited by the execution or
effectiveness of the Amended and Restated Credit Agreement.

 

 

[Remainder of page intentionally
left blank.]

 

132

 

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

 

	
  COMPANY:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MAIDENFORM, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Steven N. Masket

  	
   

  
	
   

  	
  Name:

  	
  Steven N. Masket

  
	
   

  	
  Title:

  	
  Executive Vice President, Chief Legal Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  
	
   

  	
   

  
	
   

  	
   

  	
  154 Avenue E

  
	
   

  	
   

  	
  Bayonne, NJ 07078

  
	
   

  	
   

  	
  Attn: Steven Masket

  
	
   

  	
   

  
	
   

  	
   

  
	
  HOLDINGS:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MAIDENFORM BRANDS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Steven N. Masket

  	
   

  
	
   

  	
  Name:

  	
  Steven N. Masket

  
	
   

  	
  Title:

  	
  Executive Vice President, Chief Legal Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Notice Address:

  
	
   

  	
   

  
	
   

  	
   

  	
  154 Avenue E

  
	
   

  	
   

  	
  Bayonne, NJ 07078

  
	
   

  	
   

  	
  Attn: Steven Masket

  

 

 

	
  LENDERS:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BNP PARIBAS,

  
	
   

  	
  individually and as Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Eric L. Toizer

  	
   

  
	
   

  	
  Name:

  	
  Eric L. Toizer

  
	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  and

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Susan M. Bowes

  	
   

  
	
   

  	
  Name:

  	
  Susan M. Bowes

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Notice Address:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BNP Paribas

  
	
   

  	
   

  	
  Attention: Susan Bowes

  
	
   

  	
   

  	
  One Front Street, 23rd Floor

  
	
   

  	
   

  	
  San Francisco, CA 94111

  
	
   

  	
   

  	
  Telephone: 415-772-1520

  
	
   

  	
   

  	
  Fax: 415-398-4240

  

 

 

	
   

  	
  ARCHIMEDES FUNDING III, LTD.

  
	
   

  	
   

  
	
   

  	
  BY:

  	
  ING Capital Advisors LLC,

  
	
   

  	
   

  	
  as Collateral Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Cheryl A. Wasilewski

  	
   

  
	
   

  	
  Name:

  	
  Cheryl A. Wasilewski

  
	
   

  	
  Title:

  	
  Director

  
						

 

 

	
   

  	
  AVENUE CLO FUND, LTD.,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Richard D’Addario

  	
   

  
	
   

  	
  Name:

  	
  Richard D’Addario

  
	
   

  	
  Title:

  	
  Senior Portfolio Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address: 535 Madison Avenue

  
	
   

  	
  15th FL

  
	
   

  	
  New York, NY 10022

  

 

 

	
   

  	
  BABSON CLO LTD. 2003-I

  
	
   

  	
  BABSON CLO LTD. 2004-I

  
	
   

  	
  SEABOARD CLO 2000 LTD.

  
	
   

  	
  By:

  	
  Babson Capital Management LLC as

  
	
   

  	
  Collateral Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Marcus Sowell

  	
   

  
	
   

  	
  Name:

  	
  Marcus Sowell

  
	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MAPLEWOOD (CAYMAN) LIMITED

  
	
   

  	
  By:

  	
  Babson Capital Management LLC as

  
	
   

  	
  Investment Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Marcus Sowell

  	
   

  
	
   

  	
  Name:

  	
  Marcus Sowell

  
	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MASSACHUSETTS MUTUAL LIFE

  
	
   

  	
  INSURANCE COMPANY

  
	
   

  	
  By:

  	
  Babson Capital Management LLC as

  
	
   

  	
  Investment Adviser

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Marcus Sowell

  	
   

  
	
   

  	
  Name:

  	
  Marcus Sowell

  
	
   

  	
  Title:

  	
  Managing Director

  

 

 

	
   

  	
  BLACKROCK GLOBAL FLOATING RATE

  INCOME TRUST

  
	
   

  	
  BLACKROCK SENIOR INCOME SERIES

  
	
   

  	
  MAGNETITE IV CLO, LIMITED

  
	
   

  	
  MAGNETITE V CLO, LIMITED

  
	
   

  	
  SENIOR LOAN PORTFOLIO,

  
	
   

  	
  as Lenders

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Tom Colwell

  	
   

  
	
   

  	
  Name:

  	
  Tom Colwell

  
	
   

  	
  Title:

  	
  Auth. Sig.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
						

 

 

	
   

  	
  CAISSE DE DÉPÔT ET PLACEMENT DU

  QUÉBEC, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  James B. McMullan

  	
   

  
	
   

  	
  Name:

  	
  James B. McMullan

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Diane C. Favreau

  	
   

  
	
   

  	
  Name:

  	
  Diane C. Favreau

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  	
   

  	
   

  
	
   

  	
  1000 Place Jean-Paul Riopelle

  
	
   

  	
  Montreal (Québec) H2Z 2B3

  
						

 

 

	
   

  	
  By:

  	
  Callidus Debt Partners CLO Fund II, Ltd.

  
	
   

  	
  By:

  	
  Its Collateral Manager,

  
	
   

  	
  Callidus Capital Management, LLC

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Wayne Mueller

  	
   

  
	
   

  	
  Name:

  	
  Wayne Mueller

  
	
   

  	
  Title:

  	
  Senior Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
						

 

 

	
   

  	
  Denali Capital LLC, managing member of

  
	
   

  	
  DC Funding Partners, portfolio manager for

  
	
   

  	
  DENALI CAPITAL CLO III, LTD., or an affiliate

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  John P. Thacker

  	
   

  
	
   

  	
  Name:

  	
  John P. Thacker

  
	
   

  	
  Title:

  	
  Chief Credit Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
						

 

 

	
   

  	
  Denali Capital LLC, managing member of

  
	
   

  	
  DC Funding Partners, portfolio manager for

  
	
   

  	
  DENALI CAPITAL CLO IV, LTD., or an affiliate

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  John P. Thacker

  	
   

  
	
   

  	
  Name:

  	
  John P. Thacker

  
	
   

  	
  Title:

  	
  Chief Credit Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
						

 

 

	
   

  	
  Dryden High Yield CDO 2001-I

  
	
   

  	
   

  
	
   

  	
  By Prudential Investment Management,

  
	
   

  	
  Inc., as Collateral Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/

  	
  George Edwards

  	
   

  
	
   

  	
  Name:

  	
  George W. Edwards

  
	
   

  	
  Title:

  	
  Principal

  

 

 

	
   

  	
  Dryden V – Leveraged Loan CDO 2003

  
	
   

  	
   

  
	
   

  	
  By Prudential Investment Management,

  
	
   

  	
  Inc., as Collateral Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/

  	
  George Edwards

  	
   

  
	
   

  	
  Name:

  	
  George W. Edwards

  
	
   

  	
  Title:

  	
  Principal

  

 

 

	
   

  	
  FRIEDBERGMILSTEIN PRIVATE

  
	
   

  	
  CAPITAL FUND I,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Eric A. Green

  	
   

  
	
   

  	
  Name:

  	
  Eric A. Green

  
	
   

  	
  Title:

  	
  Senior Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  
	
   

  	
  6 East 43rd Street, 21st Floor

  
	
   

  	
  New York, NY 10017

  

 

 

	
   

  	
  Galaxy CLO 1999-1 Ltd.

  
	
   

  	
  by:

  	
  AIG Global Investment Corp.

  
	
   

  	
  as Collateral Manager

  
	
   

  	
   

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  W. Jeffrey Baxter

  	
   

  
	
   

  	
  Name:

  	
  W. Jeffrey Baxter

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address: AIG Global Investment Corp.

  
	
   

  	
  1999 Avenue of the Stars, 37th Fl.

  
	
   

  	
  Los Angeles, CA 90067

  

 

 

	
   

  	
  Galaxy CLO 2003-1, Ltd.

  
	
   

  	
  by:

  	
  AIG Global Investment Corp.

  
	
   

  	
  as Investment Advisor

  
	
   

  	
   

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  W. Jeffrey Baxter

  	
   

  
	
   

  	
  Name:

  	
  W. Jeffrey Baxter

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address: AIG Global Investment Corp.

  
	
   

  	
  1999 Avenue of the Stars, 37th Fl.

  
	
   

  	
  Los Angeles, CA 90067

  

 

 

	
   

  	
  Galaxy III CLO Ltd.

  
	
   

  	
  by:

  	
  AIG Global Investment Corp.

  
	
   

  	
  as Its Investment Advisor

  
	
   

  	
   

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  W. Jeffrey Baxter

  	
   

  
	
   

  	
  Name:

  	
  W. Jeffrey Baxter

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address: AIG Global Investment Corp.

  
	
   

  	
  1999 Avenue of the Stars, 37th Fl.

  
	
   

  	
  Los Angeles, CA 90067

  

 

 

	
   

  	
  GMAC COMMERCIAL FINANCE LLC,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  W. Wakefield Smith

  	
   

  
	
   

  	
  Name:

  	
  W. Wakefield Smith

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  
	
   

  	
  GMAC Commercial Finance LLC

  
	
   

  	
  1290 Avenue of the Americas, 3rd floor

  
	
   

  	
  New York, NY 10104

  

 

 

	
   

  	
  GRANITE VENTURES I LTD.

  
	
   

  	
  BY: STONE TOWER DEBT ADVISORS

  
	
   

  	
  AS ITS COLLATERAL MANAGER,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  W. Anthony Edson

  	
   

  
	
   

  	
  Name:

  	
  W. Anthony Edson

  
	
   

  	
  Title:

  	
  Authorized Signatory

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
						

 

 

	
   

  	
  KZH SOLEIL LLC,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Virginia Conway

  	
   

  
	
   

  	
  Name:

  	
  Virginia Conway

  
	
   

  	
  Title:

  	
  Authorized Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
						

 

 

	
   

  	
  KZH SOLEIL-2 LLC,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Virginia Conway

  	
   

  
	
   

  	
  Name:

  	
  Virginia Conway

  
	
   

  	
  Title:

  	
  Authorized Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
						

 

 

	
   

  	
  LANDMARK CDO LIMITED,

  
	
   

  	
  By Aladdin Capital Management, LLC as

  
	
   

  	
  Manager as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  John J. D’Angelo

  	
   

  
	
   

  	
  Name:

  	
  John J. D’Angelo

  
	
   

  	
  Title:

  	
  Authorized Signatory

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  	
  Three Landmark Square

  	
   

  
	
   

  	
   

  	
  Stamford, CT 06901

  	
   

  
	
   

  	
   

  	
   

  
						

 

 

	
   

  	
  LANDMARK IV CDO LIMITED,

  
	
   

  	
  By Aladdin Capital Management, LLC as

  
	
   

  	
  Manager as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  John J. D’Angelo

  	
   

  
	
   

  	
  Name:

  	
  John J. D’Angelo

  
	
   

  	
  Title:

  	
  Authorized Signatory

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  	
  Three Landmark Square

  	
   

  
	
   

  	
   

  	
  Stamford, CT 06901

  	
   

  
	
   

  	
   

  	
   

  
						

 

 

	
   

  	
  LANDMARK V CDO LIMITED,

  
	
   

  	
  By Aladdin Capital Management, LLC as

  
	
   

  	
  Manager as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  John J. D’Angelo

  	
   

  
	
   

  	
  Name:

  	
  John J. D’Angelo

  
	
   

  	
  Title:

  	
  Authorized Signatory

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  	
  Three Landmark Square

  	
   

  
	
   

  	
   

  	
  Stamford, CT 06901

  	
   

  
	
   

  	
   

  	
   

  
						

 

 

	
   

  	
  LIGHTPOINT CLO-2004-1, LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Timothy S. Van Kirk

  	
   

  
	
   

  	
  Name:

  	
  Timothy S. Van Kirk

  
	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  	
  200 W. Monroe St.

  	
   

  
	
   

  	
   

  	
  Suite 1330

  	
   

  
	
   

  	
   

  	
  Chicago, Illinois 60606

  	
   

  
						

 

 

	
   

  	
  Loan Funding V, LLC

  
	
   

  	
   

  
	
   

  	
  By

  	
  Loan Funding V, LLC, for itself or as

  
	
   

  	
  agent for Corporate Loan Funding V LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Prudential Investment Management,

  
	
   

  	
  Inc., as Portfolio Manager

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/

  	
  George Edwards

  	
   

  
	
   

  	
  Name:

  	
  George W. Edwards

  
	
   

  	
  Title:

  	
  Principal

  
							

 

 

	
   

  	
  MCG CAPITAL CORPORATION,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Thomas P. McLoughlin

  	
   

  
	
   

  	
  Name:

  	
  Thomas P. McLoughlin

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  
	
   

  	
  1100 Wilson Blvd, Suite 3000

  
	
   

  	
  Arlington, VA 22209

  

 

 

	
   

  	
  Mountain Capital CLO 11 Ltd.

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Chris Siddons

  	
   

  
	
   

  	
  Name:

  	
  Chris Siddons

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address: PO Box 10632 APO

  
	
   

  	
  George Town, Grand Cayman

  
	
   

  	
  Cayman Islands

  

 

 

	
   

  	
  Mountain Capital CLO III Ltd.

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Chris Siddons

  	
   

  
	
   

  	
  Name:

  	
  Chris Siddons

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address: PO Box 10632 APO

  
	
   

  	
  George Town, Grand Cayman

  
	
   

  	
  Cayman Islands

  

 

 

	
   

  	
  NEMEAN CLO, LTD.

  
	
   

  	
   

  
	
   

  	
  BY:

  	
  ING Capital Advisors LLC,

  
	
   

  	
   

  	
  as Investment Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Cheryl A. Wasilewski

  	
   

  
	
   

  	
  Name:

  	
  Cheryl A. Wasilewski

  
	
   

  	
  Title:

  	
  Director

  
						

 

 

	
   

  	
  OLYMPIC CLO I,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  John M. Casparian

  	
   

  
	
   

  	
  Name:

  	
  John M. Casparian

  
	
   

  	
  Title:

  	
  Chief Operating Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Centre Pacific, Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
						

 

 

	
   

  	
  OPPENHEIMER SENIOR FLOATING

  
	
   

  	
  RATE FUND,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Lisa Chaffee

  	
   

  
	
   

  	
  Name:

  	
  Lisa Chaffee

  
	
   

  	
  Title:

  	
  AVP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  	
  6803 S. Tuscon Way

  	
   

  
	
   

  	
   

  	
  Centennial, CO 80112

  	
   

  
						

 

 

	
   

  	
  SEQUILS-ING I (HBDGM), LTD.

  
	
   

  	
   

  
	
   

  	
  BY:

  	
  ING Capital Advisors LLC,

  
	
   

  	
   

  	
  as Collateral Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Cheryl A. Wasilewski

  	
   

  
	
   

  	
  Name:

  	
  Cheryl A. Wasilewski

  
	
   

  	
  Title:

  	
  Director

  
						

 

 

	
   

  	
  STONE TOWER CLO II LTD.

  
	
   

  	
  BY: STONE TOWER DEBT ADVISORS

  
	
   

  	
  AS ITS COLLATERAL MANAGER,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  W. Anthony Edson

  	
   

  
	
   

  	
  Name:

  	
  W. Anthony Edson

  
	
   

  	
  Title:

  	
  Authorized Signator

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
						

 

 

	
   

  	
  STONE TOWER CLO III LTD.

  
	
   

  	
  BY: STONE TOWER DEBT ADVISORS

  
	
   

  	
  AS ITS COLLATERAL MANAGER,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  W. Anthony Edson

  	
   

  
	
   

  	
  Name:

  	
  W. Anthony Edson

  
	
   

  	
  Title:

  	
  Authorized Signator

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
						

 

 

	
   

  	
  SunAmerica Life Insurance Company

  
	
   

  	
  by:

  	
  AIG Global Investment Corp.

  
	
   

  	
  as Investment Advisor

  
	
   

  	
   

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  W. Jeffrey Baxter

  	
   

  
	
   

  	
  Name:

  	
  W. Jeffrey Baxter

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address: AIG Global Investment Corp.

  
	
   

  	
  1999 Avenue of the Stars, 37th Fl.

  
	
   

  	
  Los Angeles, CA 90067

  

 

 

	
   

  	
  VENTURE IV CDO LIMITED

  
	
   

  	
  BY ITS INVESTMENT ADVISOR,

  
	
   

  	
  MJX ASSET MANAGEMENT, LLC

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Atha Baugh

  	
   

  
	
   

  	
  Name:

  	
  Atha Baugh

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  	
   

  	
   

  
	
   

  	
  12 E 49th Street, 29th Floor

  
	
   

  	
  New York, NY 10017

  
						

 

 

	
   

  	
  WELLS FARGO BANK,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Peta Swidler

  	
   

  
	
   

  	
  Name:

  	
  Peta Swidler

  
	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address: 550 California Street, 14th Floor

  
	
   

  	
  San Francisco, CA 94104

  

 

 

	
   

  	
  WHITEHORSE I LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Whitehorse Capital Partners LP

  
	
   

  	
  as Collateral Manager

  
	
   

  	
   

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Jay Connell

  	
   

  
	
   

  	
  Name:

  	
  Jay Connell

  
	
   

  	
  Title:

  	
  Portfolio Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  	
  100 Crescent Ct.

  	
   

  
	
   

  	
   

  	
  Ste. 250

  	
   

  
	
   

  	
   

  	
  Dallas, TX 75201

  	
   

  
						

 

SCHEDULE 2.1

 

LENDERS’ COMMITMENTS AND PRO RATA SHARES

 

The
amount of each Lender’s Term Loan Commitment and Revolving Loan Commitment
immediately prior to the Restatement Date shall continue to be each such Lender’s
Term Loan Commitment and Revolving Loan Commitment on the Restatement Date; provided
that on the Restatement Date such Term Loan Commitment and Revolving Loan
Commitment shall be increased to the extent of any additional Term Loan
Commitments and Revolving Loan Commitments, as of the Restatement Date, as set
forth below.

 

Additional
Term Loan Commitments and Revolving Loan Commitments, as of the Restatement
Date, are as follows:

 

	
  Lender

  	
   

  	
  Additional Term Loan

  Commitment

  	
   

  	
  Additional Revolving Loan

  Commitment

  	
   

  
	
  BNP Paribas

  	
   

  	
  $

  	
  60,595,643.42

  	
   

  	
  $

  	
  13,000,000

  	
   

  
	
  GMAC Commercial Finance LLC

  	
   

  	
  $

  	
  441,485.16

  	
   

  	
  $

  	
  7,000,000

  	
   

  
	
  TOTAL ADDITIONAL AMOUNT

  	
   

  	
  $

  	
  61,037,128.58

  	
   

  	
  $

  	
  20,000,000.00

  	
   

  

 

The
Pro Rata Share of each Lender shall be as follows:

 

	
  Term
  Loan Commitment:

  	
   

  	
  the
  amount of such Lender’s Term Loan Commitment immediately prior to the
  Restatement Date plus the amount of such Lender’s additional Term Loan
  Commitment as set forth above divided by $150,000,000

  
	
   

  	
   

  	
   

  
	
  Revolving
  Loan Commitment:

  	
   

  	
  the
  amount of such Lender’s Revolving Loan Commitment immediately prior to the
  Restatement Date plus the amount of such Lender’s additional Revolving
  Loan Commitment as set forth above, divided by $50,000,000

  
	
   

  	
   

  	
   

  
	
  Total
  Loan Commitment:

  	
   

  	
  the
  amount of such Lender’s Term Loan Commitment and Revolving Loan Commitment
  immediately prior to the Restatement Date plus the amount of such
  Lender’s additional Term Loan Commitment and additional Revolving Loan
  Commitment as set forth above divided by $200,000,000

  

 

 

ACKNOWLEDGMENT
BY GUARANTORS

 

By executing a counterpart of this Acknowledgement by Guarantors, dated
as of June 29, 2005, each of the guarantors set forth below (“Guarantors”) hereby acknowledges that it
has read that certain Amended and Restated Credit Agreement dated as of June 29,
2005 by and among Maidenform, Inc., Maidenform Brands, Inc., the Lenders party
thereto, and BNP Paribas, as administrative agent (the “Amended and Restated Credit Agreement”, the
terms defined therein and not otherwise defined herein being used herein as
therein defined) and consents to the terms thereof, and hereby acknowledges and
agrees that any of the Guaranty and Collateral Documents (each, a “Credit Support Document”) to which it is a
party or otherwise bound shall continue in full force and effect and that all
of its obligations thereunder shall be valid and enforceable and shall not be
impaired, novated or limited by the execution or effectiveness of the Amended
and Restated Credit Agreement.  Each
Guarantor represents and warrants that all representations and warranties made
by such Guarantor contained in the Amended and Restated Credit Agreement and
the Credit Support Documents to which it is a party or otherwise bound are
true, correct and complete in all material respects on and as of the
Restatement Date to the same extent as though made on and as of that date,
except to the extent such representations and warranties specifically relate to
an earlier date, in which case they were true, correct and complete in all
material respects on and as of such earlier date.

 

[Remainder of page intentionally left blank.]

 

1

 

Each Guarantor acknowledges and agrees that (i) such Guarantor is not required by the
terms of the Amended and Restated Credit Agreement or any other Loan Document
to consent to the Amended and Restated Credit Agreement and (ii) nothing
in the Amended and Restated Credit Agreement or any other Loan Document shall
be deemed to require the consent of such Guarantor to any future amendments to
the Amended and Restated Credit Agreement.

 

	
  GUARANTORS:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MAIDENFORM BRANDS, INC.

  
	
   

  	
  By:

  	
  /s/ Steven N. Masket

  	
   

  
	
   

  	
  Name:

  	
  Steven N. Masket

  
	
   

  	
  Title:

  	
  Executive Vice President, Chief Legal Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MAIDENFORM INTERNATIONAL, LTD.

  
	
   

  	
  By:

  	
  /s/ Steven N. Masket

  	
   

  
	
   

  	
  Name:

  	
  Steven N. Masket

  
	
   

  	
  Title:

  	
  Executive Vice President, Chief Legal Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MAIDENFORM ONLINE, INC.

  
	
   

  	
  By:

  	
  /s/ Steven N. Masket

  	
   

  
	
   

  	
  Name:

  	
  Steven N. Masket

  
	
   

  	
  Title:

  	
  Executive Vice President, Chief Legal Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MF RETAIL, INC.

  
	
   

  	
  By:

  	
  /s/ Steven N. Masket

  	
   

  
	
   

  	
  Name:

  	
  Steven N. Masket

  
	
   

  	
  Title:

  	
  Executive Vice President, Chief Legal Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ELIZABETH NEEDLE CRAFT, INC.

  
	
   

  	
  By:

  	
  /s/ Steven N. Masket

  	
   

  
	
   

  	
  Name:

  	
  Steven N. Masket

  
	
   

  	
  Title:

  	
  Executive Vice President, Chief Legal Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NICHOLAS NEEDLECRAFT, INC.

  
	
   

  	
  By:

  	
  /s/ Steven N. Masket

  	
   

  
	
   

  	
  Name:

  	
  Steven N. Masket

  
	
   

  	
  Title:

  	
  Executive Vice President, Chief Legal Officer

  
					

 

I-1

 

	
   

  	
  NCC INDUSTRIES, INC.

  
	
   

  	
  By:

  	
  /s/ Steven N. Masket

  	
   

  
	
   

  	
  Name:

  	
  Steven N. Masket

  
	
   

  	
  Title:

  	
  Executive Vice President, Chief Legal Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CRESCENT INDUSTRIES, INC.

  
	
   

  	
  By:

  	
  /s/ Steven N. Masket

  	
   

  
	
   

  	
  Name:

  	
  Steven N. Masket

  
	
   

  	
  Title:

  	
  Executive Vice President, Chief Legal Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MAIDENFORM (INDONESIA) LIMITED

  
	
   

  	
  By:

  	
  /s/ Steven N. Masket

  	
   

  
	
   

  	
  Name:

  	
  Steven N. Masket

  
	
   

  	
  Title:

  	
  Executive Vice President, Chief Legal Officer

  

 

I-2

 

EXHIBIT I

 

[FORM OF]
NOTICE OF BORROWING

 

	
  To:

  	
   

  	
  BNP Paribas, as Administrative Agent

  
	
  Attention:

  	
   

  	
  Milagros Carrillo

  
	
  Telecopy:

  	
   

  	
  212-841-2682

  
	
  Telephone:

  	
   

  	
  212-471-6807

  

 

Pursuant to that certain Amended and Restated Credit Agreement dated as
of June 29, 2005, as amended, supplemented or otherwise modified to the
date hereof (said Credit Agreement, as so amended, supplemented or otherwise
modified, being the “Credit Agreement”,
the terms defined therein and not otherwise defined herein being used herein as
therein defined), by and among Maidenform, Inc., a New York corporation and
successor to MF Merger Corporation, Maidenform Brands, Inc., a Delaware
corporation and successor to MF Acquisition Corporation, the financial
institutions listed therein as Lenders (“Lenders”),
and BNP Paribas, as Administrative Agent (“Administrative
Agent”), this represents Company’s request to borrow as follows:

 

	
   

  	
  1.

  	
  Date of
  borrowing:                                       ,
               

  
	
   

  	
   

  	
   

  
	
   

  	
  2.

  	
  Amount of
  borrowing:

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  3.

  	
  Lender(s):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o
  a.

  	
  Lenders, in
  accordance with their applicable Pro Rata Shares

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o
  b.

  	
  Swing Line
  Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  4.

  	
  Type of
  Loans:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o
  a.

  	
  Term Loans

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o
  b.

  	
  Revolving
  Loans

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o
  c.

  	
  Swing Line
  Loan

  
	
   

  	
   

  	
   

  
	
   

  	
  5.

  	
  Interest
  rate option:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o
  a.

  	
  Base Rate
  Loan(s)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o
  b.

  	
  Eurodollar
  Rate Loans with an initial Interest Period of                  
  month(s)

  
							

 

The proceeds of such Loans are to be deposited in Company’s account at
Administrative Agent or as such other account as may be designated by Company
from time to time.

 

The undersigned officer, to the best of his or her knowledge, and
Company certify that:

 

I-3

 

(i)                                     The
representations and warranties contained in the Credit Agreement and the other
Loan Documents are true, correct and complete in all material respects on and
as of the date hereof to the same extent as though made on and as of the date
hereof, except to the extent such representations and warranties specifically
relate to an earlier date, in which case such representations and warranties
were true, correct and complete in all material respects on and as of such
earlier date; provided, that, if a representation and warranty is
qualified as to materiality, with respect to such representation and warranty
the materiality qualifier set forth above shall be disregarded for purposes of
this condition;

 

(ii)                                  No
event has occurred and is continuing or would result from the consummation of
the borrowing contemplated hereby that would constitute an Event of Default or
a Potential Event of Default; and

 

(iii)                               Each
Loan Party has performed in all material respects all agreements and satisfied
all conditions which the Credit Agreement provides shall be performed or
satisfied by it on or before the date hereof.

 

	
  DATED:

  	
   

  	
   

  	
  MAIDENFORM, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

I-4

 

EXHIBIT II

 

[FORM OF]
NOTICE OF CONVERSION/CONTINUATION

 

	
  To:

  	
   

  	
  BNP Paribas, as Administrative Agent

  
	
  Attention:

  	
   

  	
  Milagros Carrillo

  
	
  Telecopy:

  	
   

  	
  212-841-2682

  
	
  Telephone:

  	
   

  	
  212-471-6807

  

 

Pursuant to that certain Amended and Restated Credit Agreement dated as
of June 29, 2005, as amended, supplemented or otherwise modified to the
date hereof (said Credit Agreement, as so amended, supplemented or otherwise
modified, being the “Credit Agreement”,
the terms defined therein and not otherwise defined herein being used herein as
therein defined), by and among Maidenform, Inc., a New York corporation and
successor to MF Merger Corporation, Maidenform Brands, Inc., a Delaware
corporation and successor to MF Acquisition Corporation, the financial
institutions listed therein as Lenders (“Lenders”),
and BNP Paribas, as Administrative Agent (“Administrative
Agent”), this represents Company’s request to convert or continue
Loans as follows:

 

	
   

  	
  1.

  	
  Date of conversion/continuation:                                     ,
             

  
	
   

  	
   

  	
   

  
	
   

  	
  2.

  	
  Amount of Loans being converted/continued:

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  3.

  	
  Type of Loans being converted/continued:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o a.

  	
  Term Loans

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o b.

  	
  Revolving Loans

  
	
   

  	
   

  	
   

  
	
   

  	
  4.

  	
  Nature of conversion/continuation:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o a.

  	
  Conversion of Base Rate Loans to Eurodollar
  Rate Loans

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o b.

  	
  Conversion of Eurodollar Rate Loans to Base
  Rate Loans

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o c.

  	
  Continuation of Eurodollar Rate Loans as
  such

  
	
   

  	
   

  	
   

  
	
  5.        If Loans are being continued as or
  converted to Eurodollar Rate Loans, the duration of the new Interest Period
  that commences on the conversion/ continuation date:                             
  month(s)

  
							

 

II-1

 

In the case of a conversion to or continuation of Eurodollar Rate
Loans, the undersigned officer, to the best of his or her knowledge, and
Company certify that no Event of Default or Potential Event of Default has
occurred and is continuing under the Credit Agreement.

 

	
  DATED:

  	
   

  	
   

  	
  MAIDENFORM, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

II-2

 

EXHIBIT III

 

[FORM OF]
REQUEST FOR ISSUANCE

 

	
  To:

  	
   

  	
  BNP Paribas, as Administrative Agent

  
	
  Attention:

  	
   

  	
  William E. Greten/Connie Ffrench

  
	
  Telecopy:

  	
   

  	
  212-471-6996

  
	
  Telephone:

  	
   

  	
  212-471-6907 (Greten) / 212-471-6965
  (Ffrench)

  

 

Pursuant to that certain Amended and Restated Credit Agreement dated as
of June 29, 2005, as amended, supplemented or otherwise modified to the
date hereof (said Credit Agreement, as so amended, supplemented or otherwise
modified, being the “Credit Agreement”,
the terms defined therein and not otherwise defined herein being used herein as
therein defined), by and among Maidenform, Inc., a New York corporation and
successor to MF Merger Corporation, Maidenform Brands, Inc., a Delaware
corporation and successor to MF Acquisition Corporation, the financial
institutions listed therein as Lenders (“Lenders”),
and BNP Paribas, as Administrative Agent (“Administrative
Agent”), this represents Company’s request for the issuance of a
Letter of Credit by [Administrative
Agent][name of other Lender] as follows:

 

	
   

  	
  1.

  	
  Issuing Lender:             Administrative
  Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [                                                                   ]

  
	
   

  	
   

  	
   

  
	
   

  	
  2.

  	
  Date of issuance of Letter of Credit:                               ,
                

  
	
   

  	
   

  	
   

  
	
   

  	
  3.

  	
  Type of Letter of Credit:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o a.

  	
  Commercial Letter of Credit

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o b.

  	
  Standby Letter of Credit

  
	
   

  	
   

  	
   

  
	
   

  	
  4.

  	
  Face amount of Letter of Credit:

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  5.

  	
  Expiration date of Letter of Credit:                               ,
               

  
	
   

  	
   

  	
   

  
	
   

  	
  6.

  	
  Name and address of beneficiary:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.

  	
  Attached hereto is:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
  the verbatim text of such proposed Letter
  of Credit

  
								

 

i

 

	
   

  	
   

  	
  o

  	
  a description of the proposed terms and
  conditions of such Letter of Credit, including a precise description of any
  documents to be presented by the beneficiary which, if presented by the
  beneficiary prior to the expiration date of such Letter of Credit, would
  require the Issuing Lender to make payment under such Letter of Credit.

  

 

The undersigned officer, to the best of his or her knowledge, and
Company certify that:

 

(i)                                     The
representations and warranties contained in the Credit Agreement and the other
Loan Documents are true, correct and complete in all material respects on and
as of the date hereof to the same extent as though made on and as of the date
hereof, except to the extent such representations and warranties specifically
relate to an earlier date, in which case such representations and warranties
were true, correct and complete in all material respects on and as of such
earlier date;  provided, that, if
a representation and warranty is qualified as to materiality, with respect to
such representation and warranty the materiality qualifier set forth above
shall be disregarded for purposes of this condition;

 

(ii)                                  No
event has occurred and is continuing or would result from the issuance of the
Letter of Credit contemplated hereby that would constitute an Event of Default
or a Potential Event of Default; and

 

(iii)                               Each
Loan Party has performed in all material respects all agreements and satisfied
all conditions which the Credit Agreement provides shall be performed or
satisfied by it on or before the date hereof.

 

	
  DATED:

  	
   

  	
   

  	
  MAIDENFORM, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

ii

 

EXHIBIT IV

 

[FORM OF] TERM NOTE

 

[MF MERGER CORPORATION][MAIDENFORM, INC.]

 

	
  $                                                    (1)

  	
   

  	
   

  	
                                               (2)

  
	
   

  	
   

  	
  {Issuance date}

  

 

FOR VALUE
RECEIVED, [MF MERGER CORPORATION][MAIDENFORM, INC.], a New York corporation,
promises to pay to                                           (3) (“Payee”) or its registered assigns the
principal amount of                                        (4) 
($[                                              1]).  The principal amount of this Note shall be
payable on the dates and in the amounts specified in the Credit Agreement;
provided that the last such installment shall be in an amount sufficient to
repay the entire unpaid principal balance of this Note, together with all
accrued and unpaid interest thereon.

 

Company also
promises to pay interest on the unpaid principal amount hereof, until paid in
full, at the rates and at the times which shall be determined in accordance
with the provisions of that certain Credit Agreement dated as of May 11,
2004 by and among Company, MF Acquisition Corporation, a Delaware corporation, the
financial institutions listed therein as Lenders, and BNP Paribas, as Administrative
Agent (said Credit Agreement, as it may be amended, supplemented or otherwise
modified from time to time, being the “Credit
Agreement”, the terms defined therein and not otherwise defined
herein being used herein as therein defined).

 

This Note is
one of Company’s “Term Notes” and is issued pursuant to and entitled to the
benefits of the Credit Agreement, to which reference is hereby made for a more
complete statement of the terms and conditions under which the Term Loan
evidenced hereby was made and is to be repaid.

 

All payments
of principal and interest in respect of this Note shall be made in lawful money
of the United States of America in same day funds at the Funding and Payment
Office or at such other place as shall be designated in writing for such
purpose in accordance with the terms of the Credit Agreement.  Unless and until an Assignment Agreement
effecting the assignment or transfer of this Note shall have been accepted by Administrative
Agent and recorded in the Register as provided in the Credit Agreement, Company
and Administrative Agent shall be entitled to deem and treat Payee as the owner
and holder of this Note and the Loan evidenced hereby.  Payee hereby agrees, by its acceptance
hereof, that before disposing of this Note or any part hereof it will make a
notation hereon of all principal payments previously made hereunder and of the
date to which interest hereon has been paid; provided, however,
that the failure to make a notation of any payment made on this Note shall not
limit or otherwise

 

(1)           Insert amount of Lender’s
Term Loan in numbers.

(2)           Insert place of
delivery of Note.

(3)           Insert Lender’s name in
capital letters.

(4)           Insert amount of Lender’s
Term Loan in words.

 

IV-1

 

affect the obligations of Company hereunder with respect to payments of
principal of or interest on this Note.

 

Whenever any
payment on this Note shall be stated to be due on a day which is not a Business
Day, such payment shall be made on the next succeeding Business Day and such
extension of time shall be included in the computation of the payment of
interest on this Note.

 

This Note is
subject to mandatory prepayment as provided in the Credit Agreement and to
prepayment at the option of Company as provided in the Credit Agreement.

 

THIS
NOTE AND THE RIGHTS AND OBLIGATIONS OF COMPANY AND PAYEE HEREUNDER SHALL BE
GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 OF THE
GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

 

Upon the
occurrence of an Event of Default, the unpaid balance of the principal amount
of this Note, together with all accrued and unpaid interest thereon, may
become, or may be declared to be, due and payable in the manner, upon the
conditions and with the effect provided in the Credit Agreement.

 

The terms of
this Note are subject to amendment only in the manner provided in the Credit
Agreement.

 

This Note is
subject to restrictions on transfer or assignment as provided in the Credit
Agreement.

 

No reference
herein to the Credit Agreement and no provision of this Note or the Credit
Agreement shall alter or impair the obligations of Company, which are absolute
and unconditional, to pay the principal of and interest on this Note at the
place, at the respective times, and in the currency herein prescribed.

 

Company
promises to pay all costs and expenses, including reasonable attorneys’ fees,
all as provided in the Credit Agreement, incurred in the collection and
enforcement of this Note.  Company and
any endorsers of this Note hereby consent to renewals and extensions of time at
or after the maturity hereof, without notice, and hereby waive diligence,
presentment, protest, demand and notice of every kind and, to the full extent
permitted by law, the right to plead any statute of limitations as a defense to
any demand hereunder.

 

[Remainder of page intentionally left blank.]

 

IV-2

 

IN WITNESS
WHEREOF, Company has caused this Note to be duly executed and delivered by its
officer thereunto duly authorized as of the date and at the place first written
above.

 

	
   

  	
  [MF MERGER CORPORATION]

  [MAIDENFORM, INC.]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

IV-3

 

EXHIBIT V

 

[FORM OF] REVOLVING NOTE

 

[MF MERGER CORPORATION][MAIDENFORM, INC.]

 

	
  $                                                    (1)

  	
   

  	
   

  	
                                               (2)

  
	
   

  	
   

  	
  {Issuance date}

  

 

FOR VALUE
RECEIVED, [MF MERGER CORPORATION][MAIDENFORM, INC.], a New York corporation,
promises to pay to                                          (3) (“Payee”) or its registered assigns, the
lesser of (x)                                         (4) ($[                                         1])
and (y) the unpaid principal amount of all advances made by Payee to Company as
Revolving Loans under the Credit Agreement referred to below.  The principal amount of this Note shall be
payable on the dates and in the amounts specified in the Credit Agreement.

 

Company also
promises to pay interest on the unpaid principal amount hereof, until paid in
full, at the rates and at the times which shall be determined in accordance
with the provisions of that certain Credit Agreement dated as of May 11,
2004 by and among Company, MF Acquisition Corporation, a Delaware corporation, the
financial institutions listed therein as Lenders, and BNP Paribas, as Administrative
Agent (said Credit Agreement, as it may be amended, supplemented or otherwise
modified from time to time, being the “Credit
Agreement”, the terms defined therein and not otherwise defined
herein being used herein as therein defined).

 

This Note is
one of Company’s “Revolving Notes” and is issued pursuant to and entitled to
the benefits of the Credit Agreement, to which reference is hereby made for a
more complete statement of the terms and conditions under which the Revolving
Loans evidenced hereby were made and are to be repaid.

 

All payments
of principal and interest in respect of this Note shall be made in lawful money
of the United States of America in same day funds at the Funding and Payment
Office or at such other place as shall be designated in writing for such
purpose in accordance with the terms of the Credit Agreement.  Unless and until an Assignment Agreement
effecting the assignment or transfer of this Note shall have been accepted by Administrative
Agent and recorded in the Register as provided in the Credit Agreement, Company
and Administrative Agent shall be entitled to deem and treat Payee as the owner
and holder of this Note and the Loans evidenced hereby.  Payee hereby agrees, by its acceptance
hereof, that before disposing of this Note or any part hereof it will make a
notation hereon of all principal payments previously made hereunder and of the
date to which interest hereon has been paid; provided, however,
that the failure to make a notation of any payment made on this Note shall not
limit or otherwise affect the obligations of Company hereunder with respect to
payments of principal of or interest on this Note.

 

(1)           Insert amount of Lender’s
Revolving Loan Commitment in numbers.

(2)           Insert place of
delivery of Note.

(3)           Insert Lender’s name in
capital letters.

(4)           Insert amount of Lender’s
Revolving Loan Commitment in words.

 

V-1

 

Whenever any
payment on this Note shall be stated to be due on a day which is not a Business
Day, such payment shall be made on the next succeeding Business Day and such
extension of time shall be included in the computation of the payment of interest
on this Note.

 

This Note is
subject to mandatory prepayment as provided in the Credit Agreement and to
prepayment at the option of Company as provided in the Credit Agreement.

 

THIS
NOTE AND THE RIGHTS AND OBLIGATIONS OF COMPANY AND PAYEE HEREUNDER SHALL BE
GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 OF THE
GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

 

Upon the
occurrence of an Event of Default, the unpaid balance of the principal amount
of this Note, together with all accrued and unpaid interest thereon, may
become, or may be declared to be, due and payable in the manner, upon the
conditions and with the effect provided in the Credit Agreement.

 

The terms of
this Note are subject to amendment only in the manner provided in the Credit
Agreement.

 

This Note is
subject to restrictions on transfer or assignment as provided in the Credit
Agreement.

 

No reference
herein to the Credit Agreement and no provision of this Note or the Credit
Agreement shall alter or impair the obligations of Company, which are absolute
and unconditional, to pay the principal of and interest on this Note at the
place, at the respective times, and in the currency herein prescribed.

 

Company
promises to pay all costs and expenses, including reasonable attorneys’ fees,
all as provided in the Credit Agreement, incurred in the collection and
enforcement of this Note.  Company and
any endorsers of this Note hereby consent to renewals and extensions of time at
or after the maturity hereof, without notice, and hereby waive diligence,
presentment, protest, demand and notice of every kind and, to the full extent
permitted by law, the right to plead any statute of limitations as a defense to
any demand hereunder.

 

[Remainder of page intentionally left blank.]

 

V-2

 

IN WITNESS
WHEREOF, Company has caused this Note to be duly executed and delivered by its
officer thereunto duly authorized as of the date and at the place first written
above.

 

	
   

  	
  [MF MERGER CORPORATION]

  [MAIDENFORM, INC.]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

V-3

 

TRANSACTIONS

ON

REVOLVING NOTE

 

	
  Date

  	
   

  	
  Type of

  Loan Made

  This Date

  	
   

  	
  Amount of

  Loan Made

  This Date

  	
   

  	
  Amount of

  Principal Paid

  This Date

  	
   

  	
  Outstanding

  Principal

  Balance

  This Date

  	
   

  	
  Notation

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

V-4

 

EXHIBIT VI

 

[FORM OF] SWING LINE NOTE

 

[MF MERGER CORPORATION][MAIDENFORM, INC.]

 

	
  $                                                    (1)

  	
   

  	
   

  	
                                               (2)

  
	
   

  	
   

  	
  {Issuance date}

  

 

FOR VALUE
RECEIVED, [MF MERGER CORPORATION][MAIDENFORM, INC.], a New York corporation,
promises to pay to                                     
(“Payee”) or its registered
assigns, the lesser of (x)                                                 (3) ($[                                         (1)])
and (y) the unpaid principal amount of all advances made by Payee to Company as
Swing Line Loans under the Credit Agreement referred to below.  The principal amount of this Note shall be
payable on the dates and in the amounts specified in the Credit Agreement.

 

Company also
promises to pay interest on the unpaid principal amount hereof, until paid in
full, at the rates and at the times which shall be determined in accordance
with the provisions of that certain Credit Agreement dated as of May 11,
2004 by and among Company, MF Acquisition Corporation, a Delaware corporation, the
financial institutions listed therein as Lenders, and BNP Paribas, as Administrative
Agent (said Credit Agreement, as it may be amended, supplemented or otherwise
modified from time to time, being the “Credit
Agreement”, the terms defined therein and not otherwise defined
herein being used herein as therein defined).

 

This Note is
Company’s “Swing Line Note” and is issued pursuant to and entitled to the
benefits of the Credit Agreement, to which reference is hereby made for a more
complete statement of the terms and conditions under which the Swing Line Loans
evidenced hereby were made and are to be repaid.

 

All payments
of principal and interest in respect of this Note shall be made in lawful money
of the United States of America in same day funds at the Funding and Payment
Office or at such other place as shall be designated in writing for such
purpose in accordance with the terms of the Credit Agreement.

 

Whenever any
payment on this Note shall be stated to be due on a day which is not a Business
Day, such payment shall be made on the next succeeding Business Day and such
extension of time shall be included in the computation of the payment of
interest on this Note.

 

This Note is
subject to mandatory prepayment as provided in the Credit Agreement and to
prepayment at the option of Company as provided in the Credit Agreement.

 

THIS
NOTE AND THE RIGHTS AND OBLIGATIONS OF COMPANY AND PAYEE HEREUNDER SHALL BE
GOVERNED BY, AND SHALL BE

 

(1)           Insert amount of Swing
Line Lender’s Swing Line Commitment in numbers.

(2)           Insert place of
delivery of Note.

(3)           Insert amount of Swing
Line Lender’s Swing Line Commitment in words.

 

VI-1

 

CONSTRUED AND ENFORCED IN ACCORDANCE WITH,
THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 OF
THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

 

Upon the
occurrence of an Event of Default, the unpaid balance of the principal amount
of this Note, together with all accrued and unpaid interest thereon, may
become, or may be declared to be, due and payable in the manner, upon the
conditions and with the effect provided in the Credit Agreement.

 

The terms of
this Note are subject to amendment only in the manner provided in the Credit
Agreement.

 

This Note is
subject to restrictions on transfer or assignment as provided in the Credit
Agreement.

 

No reference
herein to the Credit Agreement and no provision of this Note or the Credit
Agreement shall alter or impair the obligations of Company, which are absolute
and unconditional, to pay the principal of and interest on this Note at the
place, at the respective times, and in the currency herein prescribed.

 

Company
promises to pay all costs and expenses, including reasonable attorneys’ fees,
all as provided in the Credit Agreement, incurred in the collection and
enforcement of this Note.  Company and
any endorsers of this Note hereby consent to renewals and extensions of time at
or after the maturity hereof, without notice, and hereby waive diligence,
presentment, protest, demand and notice of every kind and, to the full extent
permitted by law, the right to plead any statute of limitations as a defense to
any demand hereunder.

 

[Remainder of page intentionally left
blank.]

 

VI-2

 

IN WITNESS
WHEREOF, Company has caused this Note to be duly executed and delivered by its
officer thereunto duly authorized as of the date and at the place first written
above.

 

	
   

  	
  [MF MERGER CORPORATION]

  [MAIDENFORM, INC.]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

VI-3

 

TRANSACTIONS

ON

SWING LINE NOTE

 

	
  Date

  	
   

  	
  Amount of

  Loan Made

  This Date

  	
   

  	
  Amount of

  Principal Paid

  This Date

  	
   

  	
  Amount of

  Principal Paid

  This Date

  	
   

  	
  Outstanding

  Principal

  Balance

  This Date

  	
   

  	
  Notation

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

VI-4

 

EXHIBIT VII

 

[FORM OF] COMPLIANCE CERTIFICATE

 

THE
UNDERSIGNED HEREBY CERTIFIES THAT:

 

(1)           I
am the duly elected [Title] of Maidenform, Inc. a New York corporation (“Company”);

 

(2)           I
have reviewed the terms of that certain Amended and Restated Credit Agreement
dated as of June 29, 2005, as amended, supplemented or otherwise modified
to the date hereof (said Amended and Restated Credit Agreement, as so amended,
supplemented or otherwise modified, being the “Amended
and Restated Credit Agreement”, the terms defined therein and not
otherwise defined in this Certificate (including Attachment No. 1 annexed
hereto and made a part hereof) being used in this Certificate as therein
defined), by and among Company, the financial institutions party thereto as
Lenders, and BNP Paribas, as Administrative Agent, and I have made, or have
caused to be made under my supervision, a review in reasonable detail of the
transactions and condition of Company and its Subsidiaries during the
accounting period covered by the attached financial statements; and

 

(3)           The
examination described in paragraph (2) above did not disclose, and I have
no knowledge of, the existence during or at the end of the accounting period
covered by the attached financial statements of any condition or event that
constitutes an Event of Default or Potential Event of Default[, except as set
forth below], and I have no knowledge as at the date of this Certificate of any
condition or event that constitutes an Event of Default or Potential Event of
Default[, except as set forth below].

 

(4)           Company
has been in compliance with each of the covenants in Section 7 of the
Amended and Restated Credit Agreement at all times during and at the end of the
accounting period covered by the attached financial statements and as of the
date of this Certificate.

 

[Set forth
[below] [in a separate attachment to this Certificate] are all exceptions to
paragraph (3) above listing, in detail, the nature of the condition or
event, the period during which it has existed and the action which Company has
taken, is taking, or proposes to take with respect to each such condition or
event:

 

                                                                                                                                                                                         ]

 

[Remainder of page intentionally left blank.]

 

VII-1

 

The foregoing
certifications, together with the computations set forth in Attachment No. 1
annexed hereto and made a part hereof and the financial statements delivered
with this Certificate in support hereof, are made and delivered this                   
day of                    ,
         pursuant to subsection 6.1(iv) of
the Amended and Restated Credit Agreement.

 

 

	
   

  	
  MAIDENFORM,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

VII-2

 

ATTACHMENT NO. 1

TO COMPLIANCE CERTIFICATE

 

This
Attachment No. 1 is attached to and made a part of a Compliance
Certificate dated as of                          ,
        and pertains to the period from                       ,
             
to                        ,
           .  Subsection references herein relate to
subsections of the Amended and Restated Credit Agreement.

 

	
  A.

  	
  Minimum Fixed Charge Coverage Ratio
  (for the four-Fiscal Quarter period ending
                       ,
        ) Consolidated
  EBITDA:

  	
   

  	
   

  
	
   

  	
  1.

  	
  Consolidated Net Income (adjusted in
  accordance with the terms of clause (i) of the definition of
  Consolidated EBITDA):

  	
   

  	
  $

  	
   

  
	
   

  	
  2.

  	
  Consolidated Interest Expense:

  	
   

  	
  $

  	
    

  
	
   

  	
  3.

  	
  Provisions for taxes based on income:

  	
   

  	
  $

  	
    

  
	
   

  	
  4.

  	
  Total depreciation expense:

  	
   

  	
  $

  	
    

  
	
   

  	
  5.

  	
  Total amortization expense:

  	
   

  	
  $

  	
    

  
	
   

  	
  6.

  	
  Other non-cash items reducing Consolidated
  Net Income (other than any such non-cash item to the extent it represents an
  accrual of or reserve for cash expenditures in any future period):

  	
   

  	
  $

  	
    

  
	
   

  	
  7.

  	
  Net cash charges incurred in connection
  with the closure of and consequent termination of ordinary course business
  activities at retail outlet Facilities to the extent that such cash charges
  have not actually been paid:

  	
   

  	
  $

  	
    

  
	
   

  	
  8.

  	
  Fees, costs and expenses incurred on or
  prior to the Closing Date in connection with the transactions contemplated by
  the Acquisition Agreement:

  	
   

  	
  $

  	
    

  
	
   

  	
  9.

  	
  Fees paid pursuant to the Management
  Agreement and permitted under subsection 7.9:

  	
   

  	
  $

  	
    

  
	
   

  	
  10.

  	
  Rating agency fees paid to obtain or maintain
  ratings on Indebtedness of Company and its Subsidiaries:

  	
   

  	
  $

  	
    

  
	
   

  	
  11.

  	
  Net cash charges incurred in connection
  with the closure of the Florida Facility and the Mexican Facilities in an
  aggregate amount not to exceed $7,000,000:

  	
   

  	
  $

  	
    

  
	
   

  	
  12.

  	
  Any non-cash charges, adjustments and
  expenses after the Closing Date relating to the application of purchase
  accounting:

  	
   

  	
  $

  	
    

  
	
   

  	
  13.

  	
  Fees, costs, and expenses incurred on or
  prior to the Restatement Date in connection with the amendment of the
  Original Amended & Restated Credit Agreement and related waivers,
  consents, or approvals from any of the Lenders.

  	
   

  	
  $

  	
    

  
	
   

  	
  14.

  	
  IPO Fees paid directly by the Company.

  	
   

  	
  $

  	
    

  
							

 

VII-1

 

	
   

  	
  15.

  	
  Management Bonuses (together with the Permitted
  Dividend Payment not to exceed $15,000,000).

  	
   

  	
  $

  	
    

  
	
   

  	
  16.

  	
  Other non-cash items increasing
  Consolidated Net Income (other than any such non-cash item to the extent it
  will result in the receipt of cash payments in any future period and any
  non-cash items netted against non-cash charges in line 6):

  	
   

  	
  $

  	
    

  
	
   

  	
  17.

  	
  Consolidated EBITDA (1+2+3+4+5+6+7+8+9+10
  +11+/-12+13+14+15-16):

  	
   

  	
  $

  	
    

  
	
   

  	
  18.

  	
  Consolidated Capital Expenditures that are
  unfinanced or financed with proceeds of the Loans:

  	
   

  	
  $

  	
    

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Consolidated Fixed Charges:

  	
   

  	
   

  
	
   

  	
  19.

  	
  Consolidated Cash Interest Expense:

  	
   

  	
  $

  	
    

  
	
   

  	
  20.

  	
  Scheduled principal payments in respect of
  Consolidated Total Debt (excluding the aggregate amount of all rents paid or
  payable under all Capital Leases):

  	
   

  	
  $

  	
    

  
	
   

  	
  21.

  	
  Provisions for taxes based on income,
  calculated so as to take into account all net operating loss carry-forwards,
  credits and other tax benefits available to Company and its Subsidiaries:

  	
   

  	
  $

  	
    

  
	
   

  	
  22.

  	
  Restricted Junior Payments other than the
  Permitted Dividend Payment (together with the Management Bonuses not to
  exceed $15,000,000) and the IPO Fees Payment:

  	
   

  	
  $

  	
    

  
	
   

  	
  23.

  	
  Consolidated Fixed Charges (19+20+21+22):

  	
   

  	
  $

  	
    

  
	
   

  	
  24.

  	
  Fixed Charge Coverage Ratio (17)-(18):(23):

  	
   

  	
     :1.00

  
	
   

  	
  25.

  	
  Minimum ratio required under subsection 7.6B:

  	
   

  	
  1.25:1.00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B.

  	
  Maximum Leverage Ratio
  (as of
                       ,
        )

  	
   

  	
   

  
	
   

  	
  1.

  	
  Consolidated Total Debt:

  	
   

  	
  $

  	
    

  
	
   

  	
  2.

  	
  Consolidated EBITDA (A.17 above):

  	
   

  	
  $

  	
    

  
	
   

  	
  3.

  	
  Leverage Ratio (1):(2):

  	
   

  	
     :1.00

  
	
   

  	
  4.

  	
  Maximum ratio permitted under subsection 7.6B:

  	
   

  	
     :1.00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C.

  	
  Consolidated Capital Expenditures

  	
   

  	
   

  
	
   

  	
  1.

  	
  Maximum amount of Consolidated Capital
  Expenditures permitted under subsection 7.8 for Fiscal Year without
  regard to carryover amount:

  	
   

  	
  $

  	
    

  
	
   

  	
  2.

  	
  Consolidated Capital Expenditures for prior
  Fiscal Year:

  	
   

  	
  $

  	
    

  
	
   

  	
  3.

  	
  Maximum amount of Consolidated Capital
  Expenditures permitted under subsection 7.8 for prior Fiscal Year:

  	
   

  	
  $

  	
    

  

 

VII-2

 

	
   

  	
  4.

  	
  Excess of permitted amount of Consolidated
  Capital Expenditures for prior Fiscal Year over Consolidated Capital
  Expenditures in prior Fiscal Year (3-2):

  	
   

  	
  $

  	
    

  
	
   

  	
  5.

  	
  Maximum permitted amount of carryover
  permitted Consolidated Capital Expenditures from prior Fiscal Year (50% of
  C.3):

  	
   

  	
  $

  	
    

  
	
   

  	
  6.

  	
  Permitted carryover Consolidated Capital
  Expenditure Amount from prior Fiscal Year (smaller of (4) or (5)):

  	
   

  	
  $

  	
    

  
	
   

  	
  7.

  	
  Consolidated Capital Expenditures for
  Fiscal Year-to-date:

  	
   

  	
  $

  	
    

  
	
   

  	
  8.

  	
  Maximum permitted under subsection 7.8
  (1 + 6):

  	
   

  	
  $

  	
    

  

 

VII-3

 

EXHIBIT VIII

 

MATTERS TO BE COVERED BY OPINION OF COMPANY COUNSEL

1.             Company and Holdings are corporations duly organized,
validly existing and in good standing under the laws of their respective
jurisdictions of incorporation and each has all requisite corporate power and
authority to own and operate its properties and to carry on its business as now
conducted.

2.             Each Subsidiary Guarantor is a corporation duly
organized, validly existing and in good standing under the laws of its jurisdiction
of incorporation and has all requisite corporate power and authority to own and
operate its properties and to carry on its business as now conducted.

3.             Company has all requisite corporate power and authority
to execute, deliver and perform the Loan Documents to which it is a party (the
“Company Loan Documents”), to
issue the Notes and to carry out the transactions contemplated thereby.

4.             Holdings has all requisite corporate power and authority
to execute, deliver and perform the Loan Documents to which it is a party (the
“Holdings Loan Documents”) and to
carry out the transactions contemplated thereby.

5.             Each Subsidiary Guarantor has all requisite corporate
power and authority to perform the Loan Documents to which it is a party (all
such documents, collectively, the “Subsidiary
Guarantor Loan Documents”), and to carry out the transactions
contemplated thereby.

6.             The execution, delivery and performance of the Company
Loan Documents and the issuance and payment of the Notes have been duly authorized
by all necessary corporate action on the part of Company.  The Company Loan Documents and the Notes have
been duly executed and delivered by Company and constitute the legally valid
and binding obligations of Company, enforceable against Company in accordance
with their respective terms.

7.             The execution, delivery and performance of the Holdings
Loan Documents have been duly authorized by all necessary corporate action on
the part of Holdings.  The Holdings Loan
Documents have been duly executed and delivered by Holdings and constitute the
legally valid and binding obligations of Holdings, enforceable against Holdings
in accordance with their respective terms.

8.             After giving effect to the amendment and restatement of
the Original Credit Agreement pursuant to the Credit Agreement, the Subsidiary
Guarantor Loan Documents continue to constitute the legally valid and binding
obligations of each Guarantor that is a party thereto, enforceable against each
such Guarantor in accordance with their respective terms.

 

VIII-1

 

9.             Neither the execution and delivery of the Loan Documents
by the Loan Parties to which they are a party nor the issuance and payment of
the Notes by the Company, nor the consummation of the transactions contemplated
thereby nor the compliance with the terms and conditions thereof by the Loan
Parties (A) conflicts with, results in a breach or violation of, or constitutes
a default under, any of the terms, conditions or provisions of (x) the Certificate
or Articles of Incorporation or Bylaws of any Loan Party or any of their
respective Subsidiaries, (y) any term of any material agreement, instrument,
order, writ, judgment or decree known to us after due inquiry to which any Loan
Party or any of their respective Subsidiaries is a party or by which any of
their respective properties or assets are bound, or (z) any present federal,
New York or Delaware statute, rule or regulation binding on any Loan Party or
any of their respective Subsidiaries, or (B) results in the creation of any
Lien upon any of the properties or assets of any Loan Party under any agreement
or order referred to in clause (y) above (other than Liens created pursuant to
the Collateral Documents).

10.           No consents or approvals of, authorizations by, or
registrations, declarations or filings with, any federal, New York or Delaware
Government Authority are required by any Loan Party in connection with the
execution and delivery by the Loan Parties of the Loan Documents to which they are
a party or the extensions of credit under the Credit Agreement or the payment
by Company of its Obligations thereunder or the issuance and payment of the
Notes or the consummation of the transactions contemplated thereby.

11.           To the best of our knowledge after due inquiry, there
are no actions, suits or proceedings pending or threatened against any Loan
Party or any of their respective Subsidiaries that could reasonably be expected
to materially and adversely affect either the ability of any Loan Party to
perform its obligations under any Loan Document or the financial condition or
operations of any Loan Party individually or the Loan Parties taken as a whole.

12.           After giving effect to the amendment and restatement of
the Original Credit Agreement pursuant to the Credit Agreement, the security
interests of Administrative Agent in such of the Collateral (as defined in the
Security Agreement) of the Loan Parties that are parties thereto that is of a
type in which a security interest can be created under Article 9 of the Uniform
Commercial Code as in effect in the State of 
New York (the “Code”)
continue to be valid and perfected security interests to the same extent that
such security interest in such collateral was a valid and perfected security
interest immediately prior to the giving effect to the Credit Agreement and
will secure the Secured Obligations (as defined in the Security Agreement).

13.           The making of the Loans and the application of the
proceeds thereof as provided in the Credit Agreement do not violate Regulation
T, U or X of the Board of Governors of the Federal Reserve System.

14.           No Loan Party is an “investment company” within the
meaning of the Investment Company Act of 1940, as amended.

[standard qualifications and assumptions to
come from Company counsel]

 

VIII-2

 

This opinion is rendered
only to the Agent(s) and Lenders and is solely for their benefit in connection
with the above transactions.  This
opinion may not be relied upon by any Agent or Lender for any other purpose, or
quoted to or relied upon by any other person, firm or corporation for any
purpose without our prior written consent. 
You may, however, deliver copies of this opinion to your accountants,
attorneys and other professional advisors, to regulatory agencies having
jurisdiction over you and to permitted transferees of the Loans or Notes; and
any such transferees may rely on this opinion as if it were addressed and had
been delivered to them on the date of this opinion.

Very truly yours,

 

VIII-3

 

SCHEDULE A

 

 

Lenders:

 

 

VIII-4

 

EXHIBIT IX

 

[FORM OF] ASSIGNMENT AND ASSUMPTION AGREEMENT

 

This
Assignment and Assumption Agreement (the “Assignment”) is dated as of
the Effective Date set forth below and is entered into by and between [Insert
name of Assignor] (the “Assignor”)
and [Insert name of Assignee]
(the “Assignee”).  Capitalized
terms used but not defined herein shall have the meanings given to them in the
Credit Agreement identified below (as amended, the “Credit Agreement”),
receipt of a copy of which is hereby acknowledged by the Assignee.  The Standard Terms and Conditions set forth
in Annex 1 attached hereto are hereby agreed to and incorporated herein by
reference and made a part of this Assignment as if set forth herein in full.

 

For an agreed
consideration, the Assignor hereby irrevocably sells and assigns to the
Assignee, and the Assignee hereby irrevocably purchases and assumes from the
Assignor, subject to and in accordance with the Standard Terms and Conditions
and the Credit Agreement, as of the Effective Date inserted by Administrative
Agent as contemplated below, the interest in and to all of the Assignor’s
rights and obligations under the Credit Agreement and any other documents or
instruments delivered pursuant thereto that represents the amount and
percentage interest identified below of all of the Assignor’s outstanding
rights and obligations under the respective facilities identified below
(including, to the extent included in any such facilities, letters of credit
and swingline loans) (the “Assigned Interest”).  Such sale and assignment is without recourse
to the Assignor and, except as expressly provided in this Assignment, without
representation or warranty by the Assignor.

 

	
  1.

  	
   

  	
  Assignor:

  	
   

  	
                                                     

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Assignee:

  	
   

  	
                                                     
  [and is an Affiliate/Approved
  Fund(1)]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Borrower(s):

  	
   

  	
  Maidenform, Inc.
  (successor to MF Merger Corporation)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Administrative
  Agent:

  	
   

  	
                                                     ,
  as administrative agent under the Credit Agreement

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Credit
  Agreement

  	
   

  	
  The
  $130,000,000 Credit Agreement dated as of May 11, 2004 among MF Merger
  Corporation, MF Acquisition Corporation, the financial institutions from time
  to time party thereto as Lenders and BNP Paribas, as Administrative Agent

  

 

(1)           Select as applicable.

 

IX-1

 

6.             Assigned
Interest:

 

	
  Facility Assigned

  	
   

  	
  Aggregate

  Amount of

  Commitment/Loans

  for all Lenders

  	
   

  	
  Amount of

  Commitment/Loans

  Assigned

  	
   

  	
  Percentage

  Assigned of

  Commitment/Loans(2)

  	
   

  
	
  Revolving
  Loan Commitment

  	
   

  	
  $

  	
    

  	
   

  	
  $

  	
    

  	
   

  	
   

  	
  %

  
	
  Term Loan

  	
   

  	
  $

  	
    

  	
   

  	
  $

  	
    

  	
   

  	
   

  	
  %

  

 

Effective
Date:                          
     , 20       [TO BE INSERTED BY ADMINISTRATIVE AGENT AND
WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER
THEREFOR.]

 

The terms set
forth in this Assignment are hereby agreed to:

 

	
   

  	
  ASSIGNOR

  
	
   

  	
  [NAME OF ASSIGNOR]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ASSIGNEE

  
	
   

  	
  [NAME OF ASSIGNEE]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

(2)           Set forth, to at least
9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.

 

IX-2

 

	
  Consented to and Accepted:

  	
   

  
	
  BNP PARIBAS,

  	
   

  
	
  as
  Administrative Agent

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  
	
  [Consented to:](3)

  
	
  [MAIDENFORM, INC.]

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
						

 

(3)           To
be added only if the consent of Company and/or other parties (e.g. Swingline
Lender, Issuing Lender) is required by the terms of the Credit Agreement.

 

IX-3

 

ANNEX 1

 

MF MERGER CORPORATION

STANDARD TERMS AND CONDITIONS
FOR ASSIGNMENT

AND ASSUMPTION AGREEMENT

 

1.             Representations
and Warranties.

 

1.1           Assignor.  The Assignor (a) represents and warrants
that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the
Assigned Interest is free and clear of any lien, encumbrance or other adverse
claim and (iii) it has full power and authority, and has taken all action
necessary, to execute and deliver this Assignment and to consummate the
transactions contemplated hereby; and (b) assumes no responsibility with
respect to (i) any statements, warranties or representations made in or in
connection with any Loan Document, (ii) the execution, legality, validity,
enforceability, genuineness, sufficiency or value of the Credit Agreement or
any other instrument or document delivered pursuant thereto, other than this
Assignment (herein collectively the “Loan Documents”), or any collateral
thereunder, (iii) the financial condition of Company, any of its
Subsidiaries or Affiliates or any other Person obligated in respect of any Loan
Document or (iv) the performance or observance by Company, any of its
Subsidiaries or Affiliates or any other Person of any of their respective
obligations under any Loan Document.

 

1.2           Assignee.  The Assignee (a) represents and warrants
that (i) it has full power and authority, and has taken all action
necessary, to execute and deliver this Assignment and to consummate the
transactions contemplated hereby and to become a Lender under the Credit
Agreement, (ii) it meets all requirements of an Eligible Assignee under
the Credit Agreement, (iii) from and after the Effective Date, it shall be
bound by the provisions of the Credit Agreement and, to the extent of the
Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it
has received a copy of the Credit Agreement, together with copies of the most
recent financial statements delivered pursuant to subsection 6.1 thereof,
as applicable, and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this
Assignment and to purchase the Assigned Interest on the basis of which it has
made such analysis and decision, and (v) if it is a Non-US Lender,
attached to the Assignment is any documentation required to be delivered by it
pursuant to the terms of the Credit Agreement, duly completed and executed by
the Assignee; and (b) agrees that (i) it will, independently and
without reliance on Administrative Agent, the Assignor or any other Lender, and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under the Loan Documents, and (ii) it will perform in accordance with
their terms all of the obligations which by the terms of the Loan Documents are
required to be performed by it as a Lender.

 

2.             Payments.  From and after the Effective Date,
Administrative Agent shall make all payments in respect of the Assigned
Interest (including payments of principal, interest, fees and other amounts) to
the Assignor for amounts which have accrued to but excluding the Effective Date
and to the Assignee for amounts which have accrued from and after the Effective
Date.

 

IX-ANNEX 1-1

 

3.             General
Provisions.  This Assignment shall be
binding upon, and inure to the benefit of, the parties hereto and their
respective successors and assigns.  This
Assignment may be executed in any number of counterparts, which together shall
constitute one instrument.  Delivery of
an executed counterpart of a signature page of this Assignment by telecopy
shall be effective as delivery of a manually executed counterpart of this
Assignment.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER
SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH,
THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 OF
THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

 

IX-ANNEX 1-2

 

EXHIBIT X

 

[FORM OF] SOLVENCY CERTIFICATE

 

This SOLVENCY CERTIFICATE (this “Certificate”) is delivered in connection
with that certain Credit Agreement dated as of May 11, 2004 (the “Credit Agreement”) by and among MF Merger
Corporation, a New York corporation (“Company”),
MF Acquisition Corporation, a Delaware corporation, the financial institutions
referred to therein as Lenders (“Lenders”)
and BNP Paribas, as Administrative Agent (“Administrative
Agent”).  Capitalized terms
used herein without definition have the same meanings as in the Credit
Agreement.

 

This Solvency
Certificate is being delivered pursuant to subsection 4.1N of the Credit
Agreement.  The undersigned is the [Vice President Finance] of Company and hereby further certifies
as of the date hereof, in [his]  [her] capacity as an officer of Company, and
not individually, as follows:

 

1.             I
have responsibility for (a) the management of the financial affairs of
Company and the preparation of financial statements of Company, and (b) reviewing
the financial and other aspects of the transactions contemplated by the Credit
Agreement.

 

2.             I
have carefully prepared and/or reviewed the contents of this Solvency
Certificate and have conferred with counsel for Company for the purpose of
discussing the meaning of any provisions hereof that I desired to have
clarified.

 

3.             In
preparation for the consummation of the transactions contemplated by the Credit
Agreement, I have prepared and/or reviewed a pro forma balance sheet as at               ,
20     and pro forma income projections and pro forma cash
flow projections for each fiscal year during the term of the Credit Agreement
for Company and its Subsidiaries on a consolidated basis, in each case after
giving effect to the consummation of the transactions contemplated by the
Credit Agreement.  The pro forma balance
sheet has been prepared utilizing what I believe are reasonable estimates of
the “fair value” and “present fair saleable value” of the assets of Company and
its Subsidiaries.  Although any
projections may by necessity involve uncertainties and approximations, the
projections are based on good faith estimates and assumptions believed by me to
be reasonable.

 

4.             Based
upon the foregoing and upon the best of my knowledge after due diligence, I
have concluded that on the Closing Date, after giving effect to the
transactions contemplated by the Loan Documents:

 

a.             The
fair saleable value of the property of Company and each Subsidiary Guarantor on
a consolidated basis is (1) greater than the total amount of liabilities
(including contingent liabilities) of Company and each Subsidiary Guarantor on
a consolidated basis and (2) not less than the amount that will be
required to pay the probable liabilities of Company and each Subsidiary
Guarantor on a consolidated basis of their then existing debts as they become
absolute and due considering all financing alternatives and potential asset
sales reasonably available to such Company and each Subsidiary Guarantor on a
consolidated basis.

 

X-1

 

b.             Company
and each Subsidiary Guarantor on a consolidated basis has the ability to pay
its debts and liabilities (including its probable liability in respect of
contingent and unliquidated liabilities and its unmatured liabilities) as they
become absolute and matured in the normal course of business.

 

c.             Company
and each Subsidiary Guarantor on a consolidated basis does not have an
unreasonably small amount of capital with which to conduct its business after
giving due consideration to the industry in which it is engaged.

 

d.             Company
and each Subsidiary Guarantor on a consolidated basis has not executed the Loan
Documents or made any transfer or incurred any obligations thereunder, with
actual intent to hinder, delay or defraud either present or future creditors.

 

In computing
the amount of such contingent and unliquidated liabilities as of the date
hereof, such liabilities have been computed at the amount that, in the light of
all the facts and circumstances existing as of the date hereof, represents the
amount that can reasonably be expected to become an actual or matured
liability.

 

For the
purpose of the above analysis, the values of Company’s assets have been
computed by considering Company as a going concern entity.

 

I understand
that Administrative Agent and Lenders are relying on this Solvency Certificate
in extending credit to Company pursuant to the Credit Agreement.

 

[Remainder of page intentionally left blank.]

 

X-2

 

The
undersigned has executed this Solvency Certificate, in his/her capacity as an
officer of Company and not individually, as of the 11th day of May 2004.

 

 

	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

X-3

 

EXHIBIT XI

 

[FORM OF] GUARANTY

 

This GUARANTY is entered into as of May 11,
2004 by the undersigned MF ACQUISITION
CORPORATION, a Delaware corporation (“Holdings Guarantor”), and each of THE UNDERSIGNED DIRECT AND INDIRECT SUBSIDIARIES of Company
(each of such undersigned Subsidiaries being a “Subsidiary Guarantor” and collectively “Subsidiary Guarantors,” and together with
the Holdings Guarantor and any future Subsidiaries executing this Guaranty,
being collectively referred to herein as the “Guarantors”)
in favor of and for the benefit of BNP
PARIBAS, as agent for and representative of (in such capacity herein
called “Guarantied Party”) the
financial institutions (“Lenders”)
party to the Credit Agreement referred to below and any Swap Counterparties (as
hereinafter defined), and in favor of and for the benefit of the other
Beneficiaries (as hereinafter defined).

 

RECITALS.

 

A.            MF
Merger Corporation, a New York corporation, has entered into that certain
Credit Agreement dated as of May 11, 2004 with Holdings Guarantor, Lenders
and Guarantied Party, as Administrative Agent for Lenders (said Credit
Agreement, as it may hereafter be amended, supplemented or otherwise modified
from time to time, being the “Credit
Agreement”; capitalized terms defined therein and not otherwise
defined herein being used herein as therein defined).

 

B.            Company
may from time to time enter, or may from time to time have entered, into one or
more Interest Rate Agreements, Currency Agreements or other swap agreements
(collectively, the “Lender Swap Agreements”)
with one or more Persons that are Lenders or Affiliates of Lenders at the time
such Lender Swap Agreements are entered into (in such capacity, collectively, “Swap Counterparties”) in accordance with
the terms of the Credit Agreement, and it is desired that the obligations of
Company under the Lender Swap Agreements, including without limitation the
obligation of Company to make payments thereunder in the event of early
termination thereof, together with all obligations of Company under the Credit
Agreement and the other Loan Documents, be guarantied hereunder.

 

C.            Guarantied
Party, Lenders and each Swap Counterparty for which Guarantied Party has
received the notice required by Section 18 hereof are sometimes referred
to herein as “Beneficiaries”.

 

D.            Company
is a wholly owned Subsidiary of Holdings Guarantor, and a portion of the
proceeds of the Loans may be advanced to Subsidiary Guarantors, and thus the
Guarantied Obligations (as hereinafter defined) are being incurred for and will
inure to benefit of Guarantors (which benefits are hereby acknowledged).

 

E.             It
is a condition precedent to the making of the initial Loans under the Credit
Agreement that Company’s obligations thereunder be guarantied by Guarantors.

 

F.             Guarantors
are willing irrevocably and unconditionally to guaranty such obligations of
Company.

 

XI-1

 

NOW,
THEREFORE, based upon the foregoing and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and in order to induce Lenders and Guarantied Party to enter into
the Credit Agreement and to make Loans and other extensions of credit
thereunder and to induce Swap Counterparties to enter into the Lender Swap
Agreements, Guarantors hereby agree as follows:

 

1.             Guaranty.              (a) Guarantors
jointly and severally irrevocably and unconditionally guaranty, as primary
obligors and not merely as sureties, the due and punctual payment in full of
all Guarantied Obligations (as hereinafter defined) when the same shall become
due, whether at stated maturity, by acceleration, demand or otherwise
(including amounts that would become due but for the operation of the automatic
stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C. § 362(a)).
 The term “Guarantied Obligations” is used herein in its most
comprehensive sense and includes any and all Obligations of Company and all
obligations of Company under Lender Swap Agreements, now or hereafter made,
incurred or created, whether absolute or contingent, liquidated or
unliquidated, whether due or not due, and however arising under or in
connection with the Credit Agreement, the Lender Swap Agreements, this Guaranty
and the other Loan Documents, including those arising under successive borrowing
transactions under the Credit Agreement which shall either continue such
obligations of Company or from time to time renew them after they have been
satisfied.

 

Each Subsidiary
Guarantor acknowledges that a portion of the Loans may be advanced to it, and that
Letters of Credit may be issued for the benefit of its business. Each of
Holdings Guarantor and each Subsidiary Guarantor acknowledges that the
Guarantied Obligations are being incurred for and will inure to its benefit.

 

Any interest
on any portion of the Guarantied Obligations that accrues after the
commencement of any proceeding, voluntary or involuntary, involving the
bankruptcy, insolvency, receivership, reorganization, liquidation or
arrangement of Company (or, if interest on any portion of the Guarantied
Obligations ceases to accrue by operation of law by reason of the commencement
of said proceeding, such interest as would have accrued on such portion of the
Guarantied Obligations if said proceeding had not been commenced) shall be
included in the Guarantied Obligations because it is the intention of each
Guarantor and Guarantied Party that the Guarantied Obligations should be
determined without regard to any rule of law or order that may relieve
Company of any portion of such Guarantied Obligations.

 

In the event
that all or any portion of the Guarantied Obligations is paid by Company, the
obligations of each Guarantor hereunder shall continue and remain in full force
and effect or be reinstated, as the case may be, in the event that all or any
part of such payment(s) is rescinded or recovered directly or indirectly from
Guarantied Party or any other Beneficiary as a preference, fraudulent transfer
or otherwise, and any such payments that are so rescinded or recovered shall
constitute Guarantied Obligations.

 

Subject to the
other provisions of this Section 1, upon the failure of Company to pay any
of the Guarantied Obligations when and as the same shall become due, each
Guarantor will upon demand pay, or cause to be paid, in cash, to Guarantied
Party for the ratable benefit of Beneficiaries, an amount equal to the
aggregate of the unpaid Guarantied Obligations.

 

XI-2

 

(b)           Anything
contained in this Guaranty to the contrary notwithstanding, the obligations of
each Subsidiary Guarantor under this Guaranty and the other Loan Documents
shall be limited to a maximum aggregate amount equal to the largest amount that
would not render its obligations hereunder subject to avoidance as a fraudulent
transfer or conveyance under Section 548 of Title 11 of the United States
Code or any applicable provisions of comparable state law (collectively, the “Fraudulent Transfer Laws”), in each case
after giving effect to all other liabilities of such Subsidiary Guarantor, contingent
or otherwise, that are relevant under the Fraudulent Transfer Laws
(specifically excluding, however, any liabilities of such Subsidiary Guarantor
(x) in respect of intercompany indebtedness to Company or other affiliates of
Company to the extent that such indebtedness would be discharged in an amount
equal to the amount paid by such Subsidiary Guarantor hereunder and
(y) under any guaranty of Subordinated Indebtedness which guaranty
contains a limitation as to maximum amount similar to that set forth in this Section 1(b),
pursuant to which the liability of such Subsidiary Guarantor hereunder is
included in the liabilities taken into account in determining such maximum
amount) and after giving effect as assets to the value (as determined under the
applicable provisions of the Fraudulent Transfer Laws) of any rights to
subrogation, reimbursement, indemnification or contribution of such Subsidiary Guarantor
pursuant to applicable law or pursuant to the terms of any agreement.

 

(c)           Each
Subsidiary Guarantor under this Guaranty, and each guarantor under other
guaranties, if any, relating to the Credit Agreement (the “Related Guaranties”) that contain a
contribution provision similar to that set forth in this Section 1(c),
together desire to allocate among themselves (collectively, the “Contributing Guarantors”), in a fair and
equitable manner, their obligations arising under this Guaranty and the Related
Guaranties.  Accordingly, in the event
any payment or distribution is made on any date by a Subsidiary Guarantor under
this Guaranty or a guarantor under a Related Guaranty, each such Subsidiary Guarantor
or such other guarantor shall be entitled to a contribution from each of the
other Contributing Guarantors in the maximum amount permitted by law so as to maximize
the aggregate amount of the Guarantied Obligations paid to Beneficiaries.

 

2.             Guaranty Absolute; Continuing Guaranty.  The obligations of each Guarantor hereunder
are irrevocable, absolute, independent and unconditional and shall not be
affected by any circumstance which constitutes a legal or equitable discharge
of a guarantor or surety other than payment in full of the Guarantied
Obligations.  In furtherance of the
foregoing and without limiting the generality thereof, each Guarantor agrees
that:  (a) this Guaranty is a
guaranty of payment when due and not of collectibility; (b) Guarantied
Party may enforce this Guaranty upon the occurrence and during the continuance
of an Event of Default under the Credit Agreement or the occurrence of an early
termination date or similar event under any Lender Swap Agreements
notwithstanding the existence of any dispute between Company and any
Beneficiary with respect to the existence of such event; (c) the
obligations of each Guarantor hereunder are independent of the obligations of Company
under the Loan Documents or the Lender Swap Agreements and the obligations of
any other guarantor of obligations of Company and a separate action or actions
may be brought and prosecuted against each Guarantor whether or not any action
is brought against Company or any of such other guarantors and whether or not
Company is joined in any such action or actions; and (d) a payment of a
portion, but not all, of the Guarantied Obligations by one or more Guarantors
shall in no way limit, affect, modify or abridge the liability of such or any
other Guarantor for any portion of the Guarantied Obligations

 

XI-3

 

that has not been paid.  This
Guaranty is a continuing guaranty and shall be binding upon each Guarantor and
its successors and assigns, and each Guarantor irrevocably waives any right
(including without limitation any such right arising under California Civil
Code Section 2815) to revoke this Guaranty as to future transactions
giving rise to any Guarantied Obligations.

 

3.             Actions by Beneficiaries.  Any Beneficiary may from time to time,
without notice or demand and without affecting the validity or enforceability
of this Guaranty or giving rise to any limitation, impairment or discharge of
any Guarantor’s liability hereunder, (a) renew, extend, accelerate or
otherwise change the time, place, manner or terms of payment of the Guarantied
Obligations, (b) settle, compromise, release or discharge, or accept or
refuse any offer of performance with respect to, or substitutions for, the
Guarantied Obligations or any agreement relating thereto and/or subordinate the
payment of the same to the payment of any other obligations, (c) request
and accept other guaranties of the Guarantied Obligations and take and hold
security for the payment of this Guaranty or the Guarantied Obligations, (d) release,
exchange, compromise, subordinate or modify, with or without consideration, any
security for payment of the Guarantied Obligations, any other guaranties of the
Guarantied Obligations, or any other obligation of any Person with respect to
the Guarantied Obligations, (e) enforce and apply any security now or
hereafter held by or for the benefit of any Beneficiary in respect of this
Guaranty or the Guarantied Obligations and direct the order or manner of sale
thereof, or exercise any other right or remedy that Guarantied Party or the
other Beneficiaries, or any of them, may have against any such security, as
Guarantied Party in its discretion may determine consistent with the Credit
Agreement, the Lender Swap Agreements and any applicable security agreement,
including foreclosure on any such security pursuant to one or more judicial or
nonjudicial sales, whether or not every aspect of any such sale is commercially
reasonable, and (f) exercise any other rights available to Guarantied
Party or the other Beneficiaries, or any of them, under the Loan Documents or
the Lender Swap Agreements.

 

4.             No Discharge.  This Guaranty and the obligations of
Guarantors hereunder shall be valid and enforceable and shall not be subject to
any limitation, impairment or discharge for any reason (other than payment in
full of the Guarantied Obligations), including without limitation the
occurrence of any of the following, whether or not any Guarantor shall have had
notice or knowledge of any of them:  (a) any
failure to assert or enforce or agreement not to assert or enforce, or the stay
or enjoining, by order of court, by operation of law or otherwise, of the
exercise or enforcement of, any claim or demand or any right, power or remedy
with respect to the Guarantied Obligations or any agreement relating thereto,
or with respect to any other guaranty of or security for the payment of the
Guarantied Obligations, (b) any waiver or modification of, or any consent
to departure from, any of the terms or provisions of the Credit Agreement, any
of the other Loan Documents, the Lender Swap Agreements or any agreement or
instrument executed pursuant thereto, or of any other guaranty or security for
the Guarantied Obligations, (c) the Guarantied Obligations, or any
agreement relating thereto, at any time being found to be illegal, invalid or
unenforceable in any respect, (d) the application of payments received
from any source to the payment of indebtedness other than the Guarantied
Obligations, even though Guarantied Party or the other Beneficiaries, or any of
them, might have elected to apply such payment to any part or all of the
Guarantied Obligations, (e) any failure to perfect or continue perfection
of a security interest in any collateral which secures any of the Guarantied
Obligations, (f) any defenses, set-offs or counterclaims which Company may
assert against Guarantied Party or any Beneficiary in respect of the Guarantied
Obligations, including but not

 

XI-4

 

limited to failure of consideration, breach of warranty, payment,
statute of frauds, statute of limitations, accord and satisfaction and usury,
and (g) any other act or thing or omission, or delay to do any other act
or thing, which may or might in any manner or to any extent vary the risk of a
Guarantor as an obligor in respect of the Guarantied Obligations.

 

5.             Waivers.  Each Guarantor waives, for the benefit of
Beneficiaries:  (a) any right to
require Guarantied Party or the other Beneficiaries, as a condition of payment
or performance by such Guarantor, to (i) proceed against Company, any
other guarantor of the Guarantied Obligations or any other Person, (ii) proceed
against or exhaust any security held from Company, any other guarantor of the
Guarantied Obligations or any other Person, (iii) proceed against or have
resort to any balance of any deposit account or credit on the books of any
Beneficiary in favor of Company or any other Person, or (iv) pursue any
other remedy in the power of any Beneficiary; (b) any defense arising by
reason of the incapacity, lack of authority or any disability or other defense
of Company including, without limitation, any defense based on or arising out
of the lack of validity or the unenforceability of the Guarantied Obligations
or any agreement or instrument relating thereto or by reason of the cessation
of the liability of Company from any cause other than payment in full of the
Guarantied Obligations; (c) any defense based upon any statute or rule of
law which provides that the obligation of a surety must be neither larger in
amount nor in other respects more burdensome than that of the principal; (d) any
defense based upon Guarantied Party’s or any other Beneficiary’s errors or
omissions in the administration of the Guarantied Obligations, except behavior
that amounts to bad faith; (e) (i) any principles or provisions of
law, statutory or otherwise, that are or might be in conflict with the terms of
this Guaranty and any legal or equitable discharge of such Guarantor’s
obligations hereunder, (ii) the benefit of any statute of limitations
affecting such Guarantor’s liability hereunder or the enforcement hereof, (iii) any
rights to set-offs, recoupments and counterclaims, and (iv) promptness,
diligence and any requirement that any Beneficiary protect, secure, perfect or
insure any Lien or any property subject thereto; (f) notices, demands,
presentments, protests, notices of protest, notices of dishonor and notices of
any action or inaction, including acceptance of this Guaranty, notices of
default under the Credit Agreement, notices of default or early termination
under any Lender Swap Agreement or any agreement or instrument related thereto,
notices of any renewal, extension or modification of the Guarantied Obligations
or any agreement related thereto, notices of any extension of credit to Company
and notices of any of the matters referred to in Sections 3 and 4 and any right
to consent to any thereof; and (g) to the fullest extent permitted by law,
any defenses or benefits that may be derived from or afforded by law which
limit the liability of or exonerate guarantors or sureties, or which may
conflict with the terms of this Guaranty.

 

6.             Guarantors’ Rights of Subrogation,
Contribution, Etc.; Subordination of Other Obligations.  Until the Guarantied Obligations shall have
been paid in full and the Commitments shall have terminated and all Letters of
Credit shall have expired or been cancelled, each Guarantor shall withhold
exercise of (a) any claim, right or remedy, direct or indirect, that such
Guarantor now has or may hereafter have against Company or any of its assets in
connection with this Guaranty or the performance by such Guarantor of its
obligations hereunder, in each case whether such claim, right or remedy arises
in equity, under contract, by statute, under common law or otherwise and
including without limitation (i) any right of subrogation, reimbursement
or indemnification that such Guarantor now has or may hereafter have against
Company, (ii) any right to enforce, or to participate in, any claim, right
or remedy

 

XI-5

 

that any Beneficiary now has or may hereafter have against Company, and
(iii) any benefit of, and any right to participate in, any collateral or
security now or hereafter held by any Beneficiary and (b) any right of
contribution such Guarantor now has or may hereafter have against any other
guarantor of any of the Guarantied Obligations. 
Each Guarantor further agrees that, to the extent the agreement to
withhold the exercise of its rights of subrogation, reimbursement,
indemnification and contribution as set forth herein is found by a court of competent
jurisdiction to be void or voidable for any reason, any rights of subrogation,
reimbursement or indemnification such Guarantor may have against Company or
against any collateral or security, and any rights of contribution such
Guarantor may have against any such other guarantor, shall be junior and
subordinate to any rights Guarantied Party or the other Beneficiaries may have
against Company, to all right, title and interest Guarantied Party or the other
Beneficiaries may have in any such collateral or security, and to any right
Guarantied Party or the other Beneficiaries may have against such other
guarantor.

 

Any
indebtedness of Company now or hereafter held by any Guarantor is subordinated
in right of payment to the Guarantied Obligations, and any such indebtedness of
Company to a Guarantor collected or received by such Guarantor after an Event
of Default has occurred and is continuing, and any amount paid to a Guarantor
on account of any subrogation, reimbursement, indemnification or contribution
rights referred to in the preceding paragraph when all Guarantied Obligations
have not been paid in full, shall be held in trust for Guarantied Party on
behalf of Beneficiaries and shall forthwith be paid over to Guarantied Party
for the benefit of Beneficiaries to be credited and applied against the
Guarantied Obligations.

 

7.             Expenses.  Guarantors jointly and severally agree to
pay, or cause to be paid, on demand, and to save Guarantied Party and the other
Beneficiaries harmless against liability for, (i) any and all costs and
expenses (including fees, costs of settlement, and disbursements of counsel and
allocated costs of internal counsel) incurred or expended by Guarantied Party
or any other Beneficiary in connection with the enforcement of or preservation
of any rights under this Guaranty and (ii) any and all costs and expenses
(including those arising from rights of indemnification) required to be paid by
Guarantors under the provisions of any other Loan Document.

 

8.             Financial Condition of Company.  No Beneficiary shall have any obligation, and
each Guarantor waives any duty on the part of any Beneficiary, to disclose or
discuss with such Guarantor its assessment, or such Guarantor’s assessment, of
the financial condition of Company or any matter or fact relating to the
business, operations or condition of Company. 
Each Guarantor has adequate means to obtain information from Company on
a continuing basis concerning the financial condition of Company and its
ability to perform its obligations under the Loan Documents and the Lender Swap
Agreements, and each Guarantor assumes the responsibility for being and keeping
informed of the financial condition of Company and of all circumstances bearing
upon the risk of nonpayment of the Guarantied Obligations.

 

9.             Representations and Warranties.  Each Guarantor makes, for the benefit of
Beneficiaries, each of the representations and warranties made in the Credit
Agreement by Company as to such Guarantor, its assets, financial condition,
operations, organization, legal status, business and the Loan Documents to
which it is a party.

 

XI-6

 

10.          Covenants.  Each Guarantor agrees that, so long as any
part of the Guarantied Obligations shall remain unpaid, any Letter of Credit
shall be outstanding, or any Lender shall have any Commitment or any Swap
Counterparty shall have any obligation under any Lender Swap Agreement, such Guarantor
will, unless Requisite Obligees (as such term is defined in Section 18(a))
shall otherwise consent in writing, perform or observe, and cause its
Subsidiaries to perform or observe, all of the terms, covenants and agreements
that the Loan Documents state that Company is to cause a Guarantor and such
Subsidiaries to perform or observe.

 

11.          Set Off. 
In addition to any other rights any Beneficiary may have under law or in
equity, if any amount shall at any time be due and owing by a Guarantor to any
Beneficiary under this Guaranty, such Beneficiary is authorized at any time or
from time to time, without notice (any such notice being expressly waived), to
set off and to appropriate and to apply any and all deposits (general or
special, including but not limited to indebtedness evidenced by certificates of
deposit, whether matured or unmatured) and any other indebtedness of such
Beneficiary owing to a Guarantor and any other property of such Guarantor held
by a Beneficiary to or for the credit or the account of such Guarantor against
and on account of the Guarantied Obligations and liabilities of such Guarantor
to any Beneficiary under this Guaranty.

 

12.          Application of Proceeds.  Except as expressly provided elsewhere in
this Guaranty, all proceeds received by Guarantied Party on account of the
Guarantied Obligations from any Guarantor, shall be applied as provided in subsection 2.4
D of the Credit Agreement.

 

13.          Discharge of Guaranty Upon Sale of a
Subsidiary Guarantor.  If all of the
stock of a Subsidiary Guarantor or any of its successors in interest under this
Guaranty shall be sold or otherwise disposed of (including by merger or consolidation)
in a sale or other disposition to a Person (other than a Subsidiary or an
Affiliate of Company) not prohibited by the Credit Agreement or otherwise
consented to by Requisite Obligees (as such term is defined in Section 18(a)),
such Subsidiary Guarantor or such successor in interest, as the case may be,
may request Guarantied Party to execute and deliver documents or instruments
necessary to evidence the release and discharge of this Guaranty as provided in
subsection 10.14 of the Credit Agreement.

 

14.          Amendments and Waivers.  No amendment, modification, termination or
waiver of any provision of this Guaranty, and no consent to any departure by
any Guarantor therefrom, shall in any event be effective without the written
concurrence of Guarantied Party and, in the case of any such amendment or
modification, Guarantors.  Any such
waiver or consent shall be effective only in the specific instance and for the
specific purpose for which it was given.

 

15.          Miscellaneous.  It is not necessary for Beneficiaries to
inquire into the capacity or powers of any Guarantor or Company or the
officers, directors or any agents acting or purporting to act on behalf of any
of them.

 

The rights,
powers and remedies given to Beneficiaries by this Guaranty are cumulative and
shall be in addition to and independent of all rights, powers and remedies
given to Beneficiaries by virtue of any statute or rule of law or in any
of the Loan Documents or the

 

XI-7

 

Lender Swap Agreements or any agreement between one or more Guarantors
and one or more Beneficiaries or between Company and one or more
Beneficiaries.  Any forbearance or
failure to exercise, and any delay by any Beneficiary in exercising, any right,
power or remedy hereunder shall not impair any such right, power or remedy or
be construed to be a waiver thereof, nor shall it preclude the further exercise
of any such right, power or remedy.

 

In case any
provision in or obligation under this Guaranty shall be invalid, illegal or
unenforceable in any jurisdiction, the validity, legality and enforceability of
the remaining provisions or obligations, or of such provision or obligation in
any other jurisdiction, shall not in any way be affected or impaired thereby.

 

THIS
GUARANTY AND THE RIGHTS AND OBLIGATIONS OF GUARANTORS, GUARANTIED PARTY AND THE
OTHER BENEFICIARIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK
(INCLUDING WITHOUT LIMITATION SECTION 5-1401 OF THE GENERAL OBLIGATIONS
LAW OF THE STATE OF NEW YORK).

 

This Guaranty
shall inure to the benefit of Beneficiaries and their respective successors and
assigns.

 

ALL JUDICIAL
PROCEEDINGS BROUGHT AGAINST ANY GUARANTOR ARISING OUT OF OR RELATING TO THIS
GUARANTY MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT
JURISDICTION IN THE STATE OF NEW YORK, AND BY EXECUTION AND DELIVERY OF THIS
GUARANTY EACH GUARANTOR ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS
PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE NONEXCLUSIVE JURISDICTION OF THE
AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS AND IRREVOCABLY
AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS
GUARANTY.  Each Guarantor agrees that
service of all process in any such proceeding in any such court may be made by
registered or certified mail, return receipt requested, to such Guarantor at
its address set forth below its signature hereto, such service being
acknowledged by such Guarantor to be sufficient for personal jurisdiction in
any action against such Guarantor in any such court and to be otherwise
effective and binding service in every respect. 
Nothing herein shall affect the right to serve process in any other manner
permitted by law or shall limit the right of Guarantied Party or any
Beneficiary to bring proceedings against such Guarantor in the courts of any
other jurisdiction.

 

EACH
GUARANTOR AND, BY ITS ACCEPTANCE OF THE BENEFITS HEREOF, GUARANTIED PARTY EACH
AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF
ACTION BASED UPON OR ARISING OUT OF THIS GUARANTY.  THE SCOPE OF THIS WAIVER IS INTENDED TO BE
ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT
AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING WITHOUT
LIMITATION CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER

 

XI-8

 

COMMON LAW AND STATUTORY CLAIMS. EACH
GUARANTOR AND, BY ITS ACCEPTANCE OF THE BENEFITS HEREOF, GUARANTIED PARTY EACH
(I) ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT FOR SUCH
GUARANTOR AND GUARANTIED PARTY TO ENTER INTO A BUSINESS RELATIONSHIP, THAT SUCH
GUARANTOR AND GUARANTIED PARTY HAVE ALREADY RELIED ON THIS WAIVER IN ENTERING INTO
THIS GUARANTY OR ACCEPTING THE BENEFITS THEREOF, AS THE CASE MAY BE, AND
THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN THEIR RELATED FUTURE
DEALINGS, AND (II) FURTHER WARRANTS AND REPRESENTS THAT EACH HAS REVIEWED
THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT EACH KNOWINGLY AND VOLUNTARILY
WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.  THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT
BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY
SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS OF THIS GUARANTY.  In the event of litigation, this Guaranty may
be filed as a written consent to a trial by the court.

 

16.          Additional Guarantors.  The initial Subsidiary Guarantors hereunder
shall be such of the Subsidiaries of Company as are signatories hereto on the
date hereof.  From time to time
subsequent to the date hereof, Subsidiaries of Company may become parties
hereto, as additional Subsidiary Guarantors (each an “Additional Guarantor”), by executing a counterpart of this
Guaranty.  A form of such a counterpart
is attached as Exhibit A.  Upon
delivery of any such counterpart to Guarantied Party, notice of which is hereby
waived by Guarantors, each such Additional Guarantor shall be a Guarantor and
shall be as fully a party hereto as if such Additional Guarantor were an
original signatory hereof.  Each
Guarantor expressly agrees that its obligations arising hereunder shall not be
affected or diminished by the addition or release of any other Guarantor hereunder,
nor by any election of Guarantied Party not to cause any Subsidiary of Company
to become an Additional Guarantor hereunder. 
This Guaranty shall be fully effective as to any Guarantor that is or
becomes a party hereto regardless of whether any other Person becomes or fails
to become or ceases to be a Guarantor hereunder.

 

17.          Counterparts; Effectiveness.  This Guaranty may be executed in any number
of counterparts and by the different parties hereto in separate counterparts,
each of which when so executed and delivered shall be deemed to be an original
for all purposes; but all such counterparts together shall constitute but one
and the same instrument.  This Guaranty
shall become effective as to each Guarantor upon the execution of a counterpart
hereof by such Guarantor (whether or not a counterpart hereof shall have been
executed by any other Guarantor) and receipt by the Guaranteed Party of written
or telephonic notification of such execution and authorization of delivery
thereof.

 

18.          Guarantied Party as Agent.

 

(a)           Guarantied Party has
been appointed to act as Guarantied Party hereunder by Lenders.  Guarantied Party shall be obligated, and
shall have the right hereunder, to make demands, to give notices, to exercise
or refrain from exercising any rights, and to take or refrain from taking any
action, solely in accordance with this Guaranty and the Credit Agreement;

 

XI-9

 

provided that Guarantied Party shall exercise,
or refrain from exercising, any remedies under or with respect to this Guaranty
in accordance with the instructions of (i) Requisite Lenders, or (ii) after
payment in full of all Obligations under the Credit Agreement and the other
Loan Documents, the cancellation or expiration of all Letters of Credit and the
termination of the Commitments, the holders of a majority of (A) the
aggregate notional amount under all Lender Swap Agreements (including Lender
Swap Agreements that have been terminated) or (B) if all Lender Swap
Agreements have been terminated in accordance with their terms, the aggregate
amount then due and payable (exclusive of expenses and similar payments but
including any early termination payments then due) under such Lender Swap
Agreements (Requisite Lenders or, if applicable, such holders being referred to
herein as “Requisite Obligees”).

 

(b)           Guarantied Party shall
at all times be the same Person that is Administrative Agent under the Credit
Agreement.  Written notice of resignation
by Administrative Agent pursuant to subsection 9.5 of the Credit Agreement
shall also constitute notice of resignation as Guarantied Party under this
Guaranty; and appointment of a successor Administrative Agent pursuant to subsection 9.5
of the Credit Agreement shall also constitute appointment of a successor
Guarantied Party under this Guaranty. 
Upon the acceptance of any appointment as Administrative Agent under subsection 9.5
of the Credit Agreement by a successor Administrative Agent, that successor Administrative
Agent shall thereupon succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Guarantied Party under this Guaranty, and
the retiring Guarantied Party under this Guaranty shall promptly (i) transfer
to such successor Guarantied Party all sums held hereunder, together with all
records and other documents necessary or appropriate in connection with the
performance of the duties of the successor Guarantied Party under this
Guaranty, and (ii) take such other actions as may be necessary or
appropriate in connection with the assignment to such successor Guarantied
Party of the rights created hereunder, whereupon such retiring Guarantied Party
shall be discharged from its duties and obligations under this Guaranty.  After any retiring Guarantied Party’s resignation
hereunder as Guarantied Party, the provisions of this Guaranty shall inure to
its benefits as to any actions taken or omitted to be taken by it under this
Guaranty while it was Guarantied Party hereunder.

 

19.          Notice of Lender Swap Agreements.  Guarantied Party shall not be deemed to have
any duty whatsoever with respect to any Swap Counterparty until it shall have
received written notice in form and substance satisfactory to Guarantied Party
from Company, a Guarantor or the Swap Counterparty as to the existence and
terms of the applicable Lender Swap Agreement.

 

Remainder of page intentionally left blank.

 

XI-10

 

IN
WITNESS WHEREOF, each Guarantor and Guarantied Party,
solely for the purposes of the waiver of the right to jury trial contained in Section 15,
have caused this Guaranty to be duly executed and delivered by their respective
officers thereunto duly authorized as of the date first written above.

 

	
   

  	
  MF ACQUISITION CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Address:

  	
  154 Avenue E

  	
   

  
	
   

  	
   

  	
  Bayonne, NJ
  07002

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MAIDENFORM INTERNATIONAL, LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Address:

  	
  154 Avenue E

  	
   

  
	
   

  	
   

  	
  Bayonne, NJ
  07002

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MAIDENFORM ONLINE, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Address:

  	
  154 Avenue E

  	
   

  
	
   

  	
   

  	
  Bayonne, NJ
  07002

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MF RETAIL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Address:

  	
  154 Avenue E

  	
   

  
	
   

  	
   

  	
  Bayonne, NJ
  07002

  	
   

  
								

 

XI-S-1

 

	
   

  	
  ELIZABETH NEEDLE CRAFT, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Address:

  	
  154 Avenue E

  	
   

  
	
   

  	
   

  	
  Bayonne, NJ
  07002

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NICHOLAS NEEDLECRAFT, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Address:

  	
  154 Avenue E

  	
   

  
	
   

  	
   

  	
  Bayonne, NJ
  07002

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NCC INDUSTRIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Address:

  	
  154 Avenue E

  	
   

  
	
   

  	
   

  	
  Bayonne, NJ
  07002

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CRESCENT INDUSTRIES,
  INC. 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Address:

  	
  154 Avenue E

  	
   

  
	
   

  	
   

  	
  Bayonne, NJ
  07002

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MAIDENFORM (INDONESIA), INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Address:

  	
  154 Avenue E

  	
   

  
	
   

  	
   

  	
  Bayonne, NJ
  07002

  	
   

  
						

 

XI-S-2

 

	
   

  	
  BNP PARIBAS, as Administrative Agent as

  Guarantied Party

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
						

 

XI-S-3

 

EXHIBIT A

 

[FORM OF] COUNTERPART FOR ADDITIONAL GUARANTORS

 

This COUNTERPART (this
“Counterpart”), dated                   ,
20    , is delivered pursuant to Section 16 of the
Guaranty referred to below.  The
undersigned hereby agrees that this Counterpart may be attached to the
Guaranty, dated as of May 11, 2004 (as it may be from time to time
amended, modified or supplemented, the “Guaranty”;
capitalized terms used herein not otherwise defined herein shall have the
meanings ascribed therein), among the Guarantors named therein and BNP Paribas
as Administrative Agent for the Lenders, as Guarantied Party.  The undersigned, by executing and delivering
this Counterpart, hereby becomes an Additional Guarantor under the Guaranty in
accordance with Section 16 thereof and agrees to be bound by all of the
terms thereof.

 

IN
WITNESS WHEREOF, the undersigned has caused this
Counterpart to be duly executed and delivered by its officer thereunto duly
authorized as of                            ,
20    .

 

	
   

  	
  [NAME OF ADDITIONAL GUARANTOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
						

 

XI-A-1

 

EXHIBIT XII

 

[FORM OF]
SECURITY AGREEMENT

 

This SECURITY
AGREEMENT (this “Agreement”)
is dated as of May 11, 2004 and entered into by and among MF MERGER CORPORATION, a New York
corporation, MF ACQUISITION CORPORATION,
a Delaware corporation (“Holdings”),
(each of THE UNDERSIGNED DIRECT AND INDIRECT
SUBSIDIARIES of Company (each of such undersigned Subsidiaries being
a “Subsidiary Grantor” and
collectively “Subsidiary Grantors”)
and each ADDITIONAL GRANTOR that
may become a party hereto after the date hereof in accordance with Section 21
hereof (each of Company, Holdings, each Subsidiary Grantor, and each Additional
Grantor being a “Grantor” and
collectively the “Grantors”) and BNP PARIBAS, as Administrative Agent for and
representative of (in such capacity herein called “Secured Party”) the Beneficiaries (as hereinafter defined).

 

PRELIMINARY
STATEMENTS

 

A.            Pursuant
to the Credit Agreement dated as of May 11, 2004 (said Credit Agreement, as it
may hereafter be amended, restated, supplemented or otherwise modified from
time to time, being the “Credit Agreement”;
the terms defined therein and not otherwise defined in Section 31 or elsewhere
herein being used herein as therein defined), by and among Company, Holdings,
the financial institutions listed therein as Lenders, and BNP Paribas, as
Administrative Agent (in such capacity, “Administrative
Agent”), Lenders have made certain commitments, subject to the terms
and conditions set forth in the Credit Agreement, to extend certain credit
facilities to Company.

 

B.            Company
may from time to time enter, or may from time to time have entered, into one or
more Lender Swap Agreements with one or more Swap Counterparties in accordance
with the terms of the Credit Agreement, and it is desired that the obligations
of Company under the Lender Swap Agreements, including, without limitation, the
obligation of Company to make payments thereunder in the event of early
termination thereof, together with all obligations of Company under the Credit
Agreement and the other Loan Documents, be secured hereunder.

 

C.            Holdings
and Subsidiary Grantors have executed and delivered the Guaranty, in each case
in favor of Secured Party for the benefit of Lenders and any Swap
Counterparties, pursuant to which Holdings and each Subsidiary Grantor have
guarantied the prompt payment and performance when due of all obligations of
Company under the Credit Agreement and all obligations of Company under the
Lender Swap Agreements.

 

D.            It
is a condition precedent to the initial extensions of credit by Lenders under
the Credit Agreement that Grantors listed on the signature pages hereof shall
have granted the security interests and undertaken the obligations contemplated
by this Agreement.

 

NOW, THEREFORE, in
consideration of the agreements set forth herein and in the Credit Agreement
and in order to induce Lenders to make Loans and other extensions of 

 

XII-1

 

credit under the Credit
Agreement and to induce Swap Counterparties to enter into the Lender Swap
Agreements, each Grantor hereby agrees with Secured Party as follows:

 

SECTION 1.                Grant of Security.

 

Each Grantor hereby assigns to Secured Party,
and hereby grants to Secured Party a security interest in, all of such
Grantor’s right, title and interest in and to all of the personal property of
such Grantor, in each case whether now or hereafter existing, whether tangible
or intangible, whether now owned or hereafter acquired, wherever the same may
be located and whether or not subject to the Uniform Commercial Code as it
exists on the date of this Agreement, or as it may hereafter be amended in the
State of New York (the “UCC”),
including all Assigned Agreements and the following (the “Collateral”):

 

(a)           all
Accounts;

 

(b)           all
Chattel Paper;

 

(c)           all
Money and all Deposit Accounts, together with all amounts on deposit from time
to time in such Deposit Accounts;

 

(d)           all
Documents;

 

(e)           all
General Intangibles, including all intellectual property, Payment Intangibles
and Software;

 

(f)            all
Goods, including Inventory, Equipment and Fixtures;

 

(g)           all
Instruments;

 

(h)           all
Investment Property;

 

(i)            all
Letter-of-Credit Rights and other Supporting Obligations;

 

(j)            all
Records;

 

(k)           all
Commercial Tort Claims, including those set forth on Schedule 1  annexed hereto; and

 

(l)            all
Proceeds and Accessions with respect to any of the foregoing Collateral.

 

Each category of Collateral set forth above
shall have the meaning set forth in the UCC (to the extent such term is defined
in the UCC), it being the intention of Grantors that the description of the
Collateral set forth above be construed to include the broadest possible range
of assets.

 

Notwithstanding anything herein to the
contrary, in no event shall the Collateral include, and no Grantor shall be
deemed to have granted a security interest in, any of such Grantor’s rights or
interests in or under, (i) any license, contract, permit, Instrument, Security
or 

 

XII-2

 

franchise to which such Grantor
is a party or any of its rights or interests thereunder to the extent, but only
to the extent, that such a grant would, under the terms of such license,
contract, permit, Instrument, Security or franchise, result in a breach of the
terms of, or constitute a default under, such license, contract, permit,
Instrument, Security or franchise (other than to the extent that any such term
would be rendered ineffective pursuant to the UCC or any other applicable law
(including the Bankruptcy Code) or principles of equity); provided, that
immediately upon the ineffectiveness, lapse or termination of any such
provision the Collateral shall include, and such Grantor shall be deemed to
have granted a security interest in, all such rights and interests as if such
provision had never been in effect and (ii) Equipment owned by any Grantor on
the date hereof or hereafter acquired that is subject to a Lien securing
Indebtedness permitted to be incurred pursuant to subsection 7.1(iii) of the
Credit Agreement, if the contract or other agreement in which such a Lien is
granted (or the documentation providing for such Indebtedness) validly
prohibits the creation of any other Lien on such Equipment.

 

In the event that any asset of a Grantor is
excluded from the Collateral by virtue of the foregoing paragraph, such Grantor
agrees to use commercially reasonable efforts to obtain all requisite consents
to enable such Grantor to provide a security interest in such asset pursuant
hereto as promptly as practicable.

 

Notwithstanding the foregoing, the Collateral
shall not include any equity interests issued by a Person if such Person is a
controlled foreign corporation (used hereinafter as such term is defined in
Section 957(a) or any successor provision of the Internal Revenue Code), in
excess of the amount of such equity interests possessing up to but not
exceeding 65% of the voting power of all classes of such equity interests
entitled to vote of such Person.

 

SECTION 2.                Security for Obligations.

 

This Agreement secures, and the Collateral is
collateral security for, the prompt payment or performance in full when due,
whether at stated maturity, by required prepayment, declaration, acceleration,
demand or otherwise, of all Secured Obligations of each Grantor.  “Secured Obligations”
means:

 

(a)           with
respect to Company, all obligations and liabilities of every nature of Company
now or hereafter existing under or arising out of or in connection with the
Credit Agreement and the other Loan Documents and any Lender Swap Agreement;
and

 

(b)           with
respect to Holdings, each Subsidiary Grantor and each Additional Grantor, all
obligations and liabilities of every nature of such Grantor now or hereafter
existing under or arising out of or in connection with the Guaranty.

 

in each case together with all
extensions or renewals thereof, whether for principal, interest, reimbursement
of amounts drawn under Letters of Credit, payments for early termination of
Lender Swap Agreements, fees, expenses, indemnities or otherwise, whether
voluntary or involuntary, direct or indirect, absolute or contingent,
liquidated or unliquidated, whether or not jointly owed with others, and
whether or not from time to time decreased or extinguished and later increased,
created or incurred, and all or any portion of such obligations or liabilities
that are paid, to the extent all or any part of such payment is avoided or
recovered directly or 

 

XII-3

 

indirectly from Secured Party
or any Lender or Swap Counterparty as a preference, fraudulent transfer or
otherwise, and all obligations of every nature of Grantors now or hereafter
existing under this Agreement (including, without limitation, interest and
other amounts that, but for the filing of a petition in bankruptcy with respect
to Company or any other Grantor, would accrue on such obligations, whether or
not a claim is allowed against Company or such Grantor for such amounts in the
related bankruptcy proceeding).

 

SECTION 3.                Grantors Remain Liable.

 

Anything contained herein to the contrary
notwithstanding, (a) each Grantor shall remain liable under any contracts and
agreements included in the Collateral, to the extent set forth therein, to
perform all of its duties and obligations thereunder to the same extent as if
this Agreement had not been executed, (b) the exercise by Secured Party of any
of its rights hereunder shall not release any Grantor from any of its duties or
obligations under the contracts and agreements included in the Collateral, and
(c) Secured Party shall not have any obligation or liability under any
contracts, licenses, and agreements included in the Collateral by reason of
this Agreement, nor shall Secured Party be obligated to perform any of the
obligations or duties of any Grantor thereunder or to take any action to
collect or enforce any claim for payment assigned hereunder.

 

SECTION 4.                Representations and Warranties.

 

Each Grantor
represents and warrants as follows:

 

(a)           Ownership of Collateral.  Except as expressly permitted by the Credit
Agreement, such Grantor owns its interests in the Collateral free and clear of
any Lien and no effective financing statement or other instrument similar in
effect covering all or any part of the Collateral is on file in any filing or
recording office, including any IP Filing Office.

 

(b)           Perfection. 
The security interests in the Collateral granted to Secured Party for
the ratable benefit of Lenders and Swap Counterparties hereunder constitute
valid security interests in the Collateral, securing the payment of the Secured
Obligations to the extent the security interests in such Collateral can be
created under Article 9 of the UCC.  Upon
(i) the filing of UCC financing statements naming each Grantor as
“debtor”, naming Secured Party as “secured party” and describing the Collateral
in the filing offices with respect to such Grantor set forth on Schedule 2
annexed hereto, (ii) in the case of the Securities Collateral consisting
of certificated Securities or evidenced by Instruments, in addition to filing
of such UCC financing statements, delivery of the certificates representing
such certificated Securities and delivery of such Instruments to Secured Party,
in each case duly endorsed or accompanied by duly executed instruments of
assignment or transfer in blank, (iii) in the case of the Intellectual
Property Collateral, in addition to the filing of such UCC financing
statements, the recordation of a Grant with the applicable IP Filing Office,
(iv) in the case of Equipment that is covered by a certificate of title,
the filing with the appropriate authority in the applicable jurisdiction of an
application requesting the notation of the security interest created hereunder
on such certificate of title, (v) in the case of any Deposit Account and any
Investment Property constituting a Security Entitlement, Securities Account,
Commodity Contract or Commodity Account, the execution and delivery to Secured
Party of an agreement providing for control by Secured Party thereof, 

 

XII-4

 

the security interests in the
Collateral granted to Secured Party for the ratable benefit of Lenders and Swap
Counterparties will, to the extent such security interests may be perfected by
filing UCC financing statements and, in the case of the Securities Collateral
consisting of certificated Securities or evidenced by Instruments, in addition
to filing of such UCC financing statements, delivery of the certificates
representing such certificated Securities and delivery of such Instruments to
Secured Party and, in the case of the Intellectual Property Collateral, in
addition to filing of such UCC financing statements, by the filing of a Grant
with the applicable IP Filing Office, and, in the case of Deposit Accounts,
Securities Accounts and Commodity Accounts, the delivery of an executed control
agreement, constitute perfected security interests therein prior to all other
Liens (except for Permitted Encumbrances and Liens permitted by subsection
7.2A(ii) of the Credit Agreement), and all filings and other actions necessary
or desirable to perfect and protect such security interests have been, or
promptly after the Closing Date will be, duly made or taken.

 

(c)           Office Locations; Type and Jurisdiction of
Organization; Locations of Equipment and Inventory.  Such Grantor’s name as it appears in official
filings in the jurisdiction of its organization, type of organization (i.e.
corporation, limited partnership, etc.), jurisdiction of organization,
principal place of business, chief executive office, office where such Grantor
keeps its Records regarding the Accounts, Intellectual Property and originals
of Chattel Paper, and organization number provided by the applicable Government
Authority of the jurisdiction of organization are set forth on Schedule 3
annexed hereto.  All of the Equipment and
Inventory is located at the places set forth on Schedule 4 annexed
hereto, except for Inventory which, in the ordinary course of business, is in
transit either (i) from a supplier to a Grantor, (ii) between the
locations set forth on Schedule 4 annexed hereto, or (iii) to
customers of a Grantor.

 

(d)           Names. 
No Grantor (or predecessor by merger or otherwise of such Grantor) has,
within the five year period preceding the date hereof, or, in the case of an
Additional Grantor, the date of the applicable Counterpart, had a different
name from the name of such Grantor listed on the signature pages hereof, except
the names set forth on Schedule 5 annexed hereto.

 

(e)           Delivery of Certain Collateral.  All certificates or Instruments with a fair
market value individually or in the aggregate exceeding $500,000 (excluding
checks) evidencing, comprising or representing the Collateral have been
delivered to Secured Party duly endorsed or accompanied by duly executed
instruments of transfer or assignment in blank.

 

(f)            Securities Collateral.  All of the Pledged Subsidiary Equity set
forth on Schedule 6 annexed hereto has been duly authorized and validly
issued and is fully paid and non-assessable; all of the Pledged Subsidiary Debt
set forth on Schedule 7 annexed hereto has been duly authorized and is
the legally valid and binding obligation of the issuers thereof and is not in
default; there are no outstanding warrants, options or other rights to
purchase, or other agreements outstanding with respect to, or property that is
now or hereafter convertible into, or that requires the issuance or sale of,
any Pledged Subsidiary Equity; Schedule 6 annexed hereto sets forth all
of the Equity Interests and the Pledged Equity owned by each Grantor, and the
percentage ownership in each issuer thereof and Schedule 7 annexed
hereto sets forth all of the Pledged Debt owned by such Grantor.

 

XII-5

 

(g)           Intellectual Property Collateral.  A true and complete list of all Trademark
Registrations and applications for any Trademark owned, held (whether pursuant
to a license or otherwise) or used by such Grantor, in whole or in part, is set
forth on Schedule 8 annexed hereto; a true and complete list of all
material Patent Registrations owned, held (whether pursuant to a license or
otherwise) or used by such Grantor, in whole or in part, is set forth on Schedule
9 annexed hereto; a true and complete list of all material Copyright
Registrations and applications for material Copyright Registrations held
(whether pursuant to a license or otherwise) by such Grantor, in whole or in
part, is set forth on Schedule 10 annexed hereto; and such Grantor is
not aware of any pending or threatened claim by any third party that any of the
Intellectual Property Collateral owned, held or used by such Grantor is invalid
or unenforceable.

 

(h)           Deposit Accounts, Securities Accounts, Commodity
Accounts.  Schedule 11
annexed hereto lists all Deposit Accounts, Securities Accounts and Commodity Accounts
owned by each Grantor, and indicates the institution or intermediary at which
the account is held and the account number.

 

(i)            Chattel Paper.  Such Grantor has no interest in any Chattel
Paper, [except as set forth in Schedule
12 annexed hereto.]

 

(j)            Letter-of-Credit Rights.  Such Grantor has no interest in any
Letter-of-Credit Rights[, except
as set forth on Schedule 13 annexed hereto.]

 

(k)           Documents. 
No negotiable Documents are outstanding with respect to any of the
Inventory, [except as set forth on
Schedule [14] annexed hereto].

 

The
representations and warranties as to the information set forth in Schedules
referred to herein are made as to each Grantor (other than Additional Grantors)
as of the date hereof and as to each Additional Grantor as of the date of the
applicable Counterpart, except that, in the case of a Pledge Supplement, IP
Supplement or notice delivered pursuant to Section 5(d) hereof, such
representations and warranties are made as of the date of such supplement or
notice.

 

SECTION 5.                Further Assurances.

 

(a)           Generally. 
Each Grantor agrees that from time to time, at the expense of Grantors,
such Grantor will promptly execute and deliver all further instruments and
documents, and take all further action, that may be necessary or desirable, or
that Secured Party may request, in order to perfect and protect any security
interest granted or purported to be granted hereby or to enable Secured Party
to exercise and enforce its rights and remedies hereunder with respect to any
Collateral.  Without limiting the
generality of the foregoing, each Grantor will: 
(i) notify Secured Party in writing of receipt by such Grantor of
any interest in Chattel Paper with a fair market value individually or in the
aggregate exceeding $500,000 and at the request of Secured Party, mark
conspicuously each item of Chattel Paper and, at the request of Secured Party,
each of its records pertaining to the Collateral, with a legend, in form and
substance satisfactory to Secured Party, indicating that such Collateral is
subject to the security interest granted hereby, (ii) deliver to Secured
Party all promissory notes and other Instruments with a fair market value 

 

XII-6

 

individually or in the
aggregate exceeding $500,000 and, at the request of Secured Party, all original
counterparts of Chattel Paper with a fair market value individually or in the
aggregate exceeding $500,000, duly endorsed and accompanied by duly executed
instruments of transfer or assignment, all in form and substance satisfactory
to Secured Party, (iii) (A) execute (if necessary) and file such
financing or continuation statements, or amendments thereto, (B) execute
and deliver, and cause to be executed and delivered, agreements establishing
that Secured Party has control of electronic Chattel Paper with a fair market
value individually or in the aggregate exceeding $500,000, Securities Accounts
with a fair market value (including the fair market value of any Security
Entitlements held in any such Securities Accounts) individually or in the
aggregate exceeding $500,000, Commodity Accounts with a fair market value
(including the fair market value of any Commodity Contracts held in any such
Commodity Accounts) individually or in the aggregate exceeding $500,000,
Letter-of-Credit Rights with a fair market value individually or in the
aggregate exceeding $500,000, and, subject to subsection 6.11 of the Credit
Agreement, Deposit Accounts with a fair market value individually or in the
aggregate exceeding $500,000 of such Grantor and (C) deliver such other
instruments or notices, in each case, as may be necessary or desirable, or as
Secured Party may request, in order to perfect and preserve the security
interests granted or purported to be granted hereby, (iv) furnish to
Secured Party from time to time statements and schedules further identifying
and describing the Collateral and such other reports in connection with the
Collateral as Secured Party may reasonably request, all in reasonable detail, (v) at
any reasonable time, upon request by Secured Party, exhibit the Collateral to
and allow inspection of the Collateral by Secured Party, or persons designated
by Secured Party, (vi) at Secured Party’s reasonable request, appear in and
defend any action or proceeding that may affect such Grantor’s title to or
Secured Party’s security interest in all or any part of the Collateral, and
(vii) use commercially reasonable efforts to obtain any necessary consents of
third parties to the creation and perfection of a security interest in favor of
Secured Party with respect to any Collateral. 
Each Grantor hereby authorizes Secured Party to file one or more
financing or continuation statements, and amendments thereto, relative to all
or any part of the Collateral (including any financing statement indicating
that it covers “all assets” or “all personal property” of such Grantor) without
the signature of any Grantor.

 

(b)           Securities Collateral.  Without limiting the generality of the
foregoing Section 5(a), each Grantor agrees that (i) all certificates or
Instruments (A) representing or evidencing Pledged Subsidiary Equity or Pledged
Subsidiary Debt or (B) with a fair market value, individually or in the
aggregate, exceeding $500,000 representing or evidencing the Securities
Collateral (other than Pledged Subsidiary Equity or Pledged Subsidiary Debt)
shall be delivered to and held by or on behalf of Secured Party pursuant hereto
and shall be in suitable form for transfer by delivery or, as applicable, shall
be accompanied by such Grantor’s endorsement, where necessary, or duly executed
instruments of transfer or assignment in blank, all in form and substance
satisfactory to Secured Party and (ii) it will, upon obtaining any
additional Equity Interests or Indebtedness, promptly (and in any event within
ten Business Days) deliver to Secured Party a Pledge Supplement, duly executed
by such Grantor, in respect of such additional Pledged Equity or Pledged Debt; provided,
that the failure of any Grantor to execute a Pledge Supplement with respect to
any additional Pledged Equity or Pledged Debt shall not impair the security
interest of Secured Party therein or otherwise adversely affect the rights and
remedies of Secured Party hereunder with respect thereto.  Upon each such acquisition, the
representations and warranties contained in Section 4(f) hereof shall be deemed

 

XII-7

 

to have been made by such
Grantor as to such Pledged Equity or Pledged Debt, whether or not such Pledge
Supplement is delivered.

 

(c)           Intellectual Property Collateral.  Without limiting the generality of the
foregoing Section 5(a), if any Grantor shall hereafter obtain rights to any new
(i) Trademark Registration, (ii) material Patent Registration or (iii) material
Copyright Registration, application for Copyright Registration or renewals or
extension of any Copyright Registration, then in any such case, the provisions
of this Agreement shall automatically apply thereto.  At least semiannually, within 15 days after the
end of each six-month period, each Grantor shall notify Secured Party in
writing of any of the foregoing rights acquired by such Grantor after the date
hereof and of any Trademark Registrations issued or application for a Trademark
Registration made, any material Patent Registration issued or application for a
material Patent Registration made, and any material Copyright Registrations
issued or application for material Copyright Registration made, in any such
case, after the date hereof.  At least
semiannually, within 15 days after the end of each six-month period, each
Grantor shall execute and deliver to Secured Party an IP Supplement, and submit
a Grant for recordation with respect thereto in the applicable IP Filing
Office; provided, the failure of any Grantor to execute an IP Supplement
or submit a Grant for recordation with respect to any additional Intellectual
Property Collateral shall not impair the security interest of Secured Party
therein or otherwise adversely affect the rights and remedies of Secured Party
hereunder with respect thereto.  Upon
delivery to Secured Party of an IP Supplement, Schedules 8, 9 and 10
annexed hereto and Schedule A to each Grant, as applicable, shall be
deemed modified to include reference to any right, title or interest in any
existing Intellectual Property Collateral or any Intellectual Property
Collateral set forth on Schedule A to such IP Supplement.  Upon each such acquisition, the
representations and warranties contained in Section 4(g) hereof shall be deemed
to have been made by such Grantor as to such Intellectual Property Collateral,
whether or not such IP Supplement is delivered.

 

(d)           Commercial Tort Claims.  Grantors have no Commercial Tort Claims as of
the date hereof, except as set forth on Schedule 1 annexed hereto.  In the event that a Grantor shall at any time
after the date hereof have any Commercial Tort Claims, such Grantor shall
promptly notify Secured Party thereof in writing, which notice shall
(i) set forth in reasonable detail the basis for and nature of such
Commercial Tort Claim and (ii) constitute an amendment to this Agreement
by which such Commercial Tort Claim shall constitute part of the Collateral.

 

SECTION 6.                Certain Covenants of Grantors.

 

Each Grantor
shall:

 

(a)           not
use or permit any Collateral to be used unlawfully or in violation of any
provision of this Agreement or any applicable statute, regulation or ordinance
or any policy of insurance covering the Collateral;

 

(b)           give
Secured Party written notice within 30 days of (i) any change in such
Grantor’s name, identity or corporate structure and (ii) any
reincorporation, reorganization or other action that results in a change of the
jurisdiction of organization of such Grantor;

 

XII-8

 

(c)           if
Secured Party gives value to enable such Grantor to acquire rights in or the
use of any Collateral, use such value for such purposes;

 

(d)           keep
correct and accurate Records of Collateral at the locations described in Schedule
3 annexed hereto; and

 

(e)           permit
representatives of Secured Party at any time during normal business hours to
inspect and make abstracts from such Records, and each Grantor agrees to render
to Secured Party, at Grantor’s cost and expense, such clerical and other
assistance as may be reasonably requested with regard thereto.

 

SECTION 7.                Special Covenants With Respect to
Equipment and Inventory.

 

Each Grantor shall:

 

(a)           if
any Inventory is in possession or control of any of such Grantor’s agents or
processors, if the aggregate book value of all such Inventory in possession or
control of any such agent or processor exceeds $500,000, and in any event upon
the occurrence of an Event of Default, instruct such agent or processor to hold
all such Inventory for the account of Secured Party and subject to the
instructions of Secured Party;

 

 (b)          upon
the occurrence and during the continuance of an Event of Default upon Secured
Party’s written request, promptly upon the issuance and delivery to such
Grantor of any negotiable Document, deliver such Document to Secured Party.

 

SECTION 8.                Special Covenants with respect to
Accounts

 

(a)           Each
Grantor shall, for not less than three years from the date on which each
Account of such Grantor arose, maintain (i) complete Records of such
Account, including records of all payments received, credits granted and
merchandise returned, and (ii) all documentation relating thereto.

 

(b)           Except
as otherwise provided in this subsection (b), each Grantor shall continue to
collect in accordance with its past business practices or otherwise on terms
which such Grantor in good faith considers advisable, at its own expense, all
amounts due or to become due to such Grantor under the Accounts.  In connection with such collections, each
Grantor may take (and, upon the occurrence and during the continuance of an
Event of Default at Secured Party’s direction, shall take) such action as such
Grantor or Secured Party may deem necessary or advisable to enforce collection
of amounts due or to become due under the Accounts; provided, however,
that Secured Party shall have the right at any time, upon the occurrence and
during the continuation of an Event of Default and upon written notice to such
Grantor of its intention to do so, to (i) notify the account debtors or
obligors under any Accounts of the assignment of such Accounts to Secured Party
and to direct such account debtors or obligors to make payment of all amounts
due or to become due to such Grantor thereunder directly to Secured Party,
(ii) notify each Person maintaining a lockbox or similar arrangement to
which account debtors or obligors under any Accounts have been directed to make
payment to remit all amounts representing collections on checks and other
payment items from time to time sent to or deposited in such lockbox or other
arrangement directly to Secured Party, (iii) enforce collection 

 

XII-9

 

of any such Accounts at the
expense of Grantors, and (iv) adjust, settle or compromise the amount or
payment thereof, in the same manner and to the same extent as such Grantor
might have done.  After receipt by such
Grantor of the notice from Secured Party referred to in the proviso to the
preceding sentence, (A) all amounts and proceeds (including checks and other
Instruments) received by such Grantor in respect of the Accounts shall be
received in trust for the benefit of Secured Party hereunder, shall be
segregated from other funds of such Grantor and shall be forthwith paid over or
delivered to Secured Party in the same form as so received (with any necessary
endorsement) to be held as cash Collateral and applied as provided by Section
17 hereof, and (B) such Grantor shall not, without the written consent of
Secured Party, adjust, settle or compromise the amount or payment of any
Account, or release wholly or partly any account debtor or obligor thereof, or
allow any credit or discount thereon.

 

SECTION 9.                Special Covenants With Respect to
the Securities Collateral.

 

(a)           Form of Securities Collateral.  Secured Party shall have the right at any
time after the occurrence and during the continuance of Event of Default to
exchange certificates or instruments representing or evidencing Securities
Collateral for certificates or instruments of smaller or larger denominations.  If any Securities Collateral is not a
security pursuant to Section 8-103 of the UCC, no Grantor shall take any action
that, under such Section, converts such Securities Collateral into a security
without causing the issuer thereof to issue to it certificates or instruments
evidencing such Securities Collateral, which it shall promptly deliver to
Secured Party as provided in this Section 9(a).

 

(b)           Covenants. 
Each Grantor shall (i) cause each issuer of Pledged Subsidiary
Equity not to issue Equity Interests in addition to or in substitution for the
Pledged Subsidiary Equity issued by such issuer, except to such Grantor;  (ii) immediately
upon its acquisition (directly or indirectly) of any Equity Interests,
including additional Equity Interests in each issuer of Pledged Equity, comply
with Section 5(b); provided that, notwithstanding anything contained in
this clause (ii) to the contrary, such Grantor shall only be required to pledge
the outstanding Equity Interests of a controlled foreign corporation not
exceeding 65% of the voting power of all classes of capital stock of such
controlled foreign corporation entitled to vote; (iii) immediately upon
issuance of any and all Instruments or other evidences of additional
Indebtedness from time to time owed to such Grantor by any obligor on the
Pledged Debt, comply with Section 5; (iv) promptly deliver to Secured
Party all material written notices received by it with respect to the
Securities Collateral; (v) at its expense (A) perform and comply in all
material respects with all terms and provisions of any agreement related to the
Securities Collateral required to be performed or complied with by it, (B)
maintain all such agreements in full force and effect and (C) enforce all such
agreements in accordance with their terms; and (vi), at the request of Secured
Party, promptly execute and deliver to Secured Party an agreement providing for
control by Secured Party of all Securities Accounts and Commodity Accounts of
such Grantor.

 

(c)           Voting and Distributions.  So long as no Event of Default shall have
occurred and be continuing, (i) each Grantor shall be entitled to exercise
any and all voting and other consensual rights pertaining to the Securities
Collateral or any part thereof for any purpose not prohibited by the terms of
this Agreement or the Credit Agreement; provided, no Grantor shall
exercise or refrain from exercising any such right if Secured Party shall have
notified such 

 

XII-10

 

Grantor that, in Secured
Party’s judgment, such action would have a material adverse effect on the value
of the Securities Collateral or any part thereof; and (ii) each Grantor
shall be entitled to receive and retain any and all dividends, other
distributions, principal and interest paid in respect of the Securities
Collateral.

 

Upon the occurrence and during the
continuation of an Event of Default, (x) upon written notice from Secured Party
to any Grantor, all rights of such Grantor to exercise the voting and other
consensual rights which it would otherwise be entitled to exercise pursuant
hereto shall cease, and all such rights shall thereupon become vested in
Secured Party who shall thereupon have the sole right to exercise such voting
and other consensual rights; (y) except as otherwise specified in the Credit
Agreement, all rights of such Grantor to receive the dividends, other
distributions, principal and interest payments which it would otherwise be
authorized to receive and retain pursuant hereto shall cease, and all such
rights shall thereupon become vested in Secured Party who shall thereupon have
the sole right to receive and hold as Collateral such dividends, other
distributions, principal and interest payments; and (z) all dividends,
principal, interest payments and other distributions which are received by such
Grantor contrary to the provisions of clause (y) above shall be received in
trust for the benefit of Secured Party, shall be segregated from other funds of
such Grantor and shall forthwith be paid over to Secured Party as Collateral in
the same form as so received (with any necessary endorsements).

 

In order to permit Secured Party to exercise
the voting and other consensual rights which it may be entitled to exercise
pursuant hereto and to receive all dividends and other distributions which it
may be entitled to receive hereunder, (I) each Grantor shall promptly execute
and deliver (or cause to be executed and delivered) to Secured Party all such
proxies, dividend payment orders and other instruments as Secured Party may
from time to time reasonably request, and (II) without limiting the effect of
clause (I) above, each Grantor hereby grants to Secured Party an irrevocable
proxy to vote the Pledged Equity and to exercise all other rights, powers,
privileges and remedies to which a holder of the Pledged Equity would be
entitled (including giving or withholding written consents of holders of Equity
Interests, calling special meetings of holders of Equity Interests and voting
at such meetings), which proxy shall be effective, automatically and without
the necessity of any action (including any transfer of any Pledged Equity on
the record books of the issuer thereof) by any other Person (including the
issuer of the Pledged Equity or any officer or agent thereof), upon the
occurrence of an Event of Default and which proxy shall only terminate upon the
payment in full of the Secured Obligations, the cure of such Event of Default
or waiver thereof as evidenced by a writing executed by Secured Party.

 

So long as no Event of Default shall have occurred
and be continuing, the Secured Party shall promptly execute and deliver (or
cause to be executed and delivered) to, and at the cost and expense of, the
Grantors all such proxies, dividend payment orders and other instruments as the
Grantors may from time to time reasonably request for the purpose of enabling
the Grantors to exercise the voting and other consensual rights which they are
entitled to exercise pursuant to this section and to receive the dividends,
distributions, principal or interest payments which they are authorized to
receive and retain pursuant to this section.

 

XII-11

 

SECTION 10.       Special
Covenants With Respect to the Intellectual Property Collateral.

 

(a)           Each
Grantor shall:

 

(i)            use commercially reasonable
efforts so as not to permit the inclusion in any contract to which it hereafter
becomes a party of any provision that could in any way impair or prevent the
creation of a security interest in, or the assignment of, such Grantor’s rights
and interests in any property included within the definitions of any
Intellectual Property Collateral acquired under such contracts;

 

(ii)           take any and all steps
deemed appropriate in Grantor’s commercially reasonable judgment consistent
with Grantor’s past practices to protect the secrecy of all trade secrets
relating to the products and services sold or delivered under or in connection
with the Intellectual Property Collateral, including, without limitation, where
appropriate entering into confidentiality agreements with employees and
labeling and restricting access to secret information and documents;

 

(iii)          use proper statutory
notice in connection with its use of any of the Intellectual Property
Collateral and products and services covered by the Intellectual Property
Collateral deemed appropriate in Grantor’s commercially reasonable judgment
consistent with Grantor’s past practices; and

 

(iv)          use a commercially
appropriate standard of quality (which may be consistent with such Grantor’s
past practices) in the manufacture, sale and delivery of products and services
sold or delivered under or in connection with the Trademarks.

 

(b)           Except
as otherwise provided in this Section 10, each Grantor shall continue to
collect in accordance with its past business practices or otherwise on such
terms which such Grantor considers advisable, at its own expense, all amounts
due or to become due to such Grantor in respect of the Intellectual Property
Collateral or any portion thereof.  In
connection with such collections, each Grantor may take (and, after the
occurrence and during the continuance of any Event of Default at Secured Party’s
reasonable direction, shall take) such action as such Grantor or Secured Party
may deem reasonably necessary or advisable to enforce collection of such
amounts; provided, Secured Party shall have the right at any time, upon the
occurrence and during the continuation of an Event of Default and upon written
notice to such Grantor of its intention to do so, to notify the obligors with
respect to any such amounts of the existence of the security interest created
hereby and to direct such obligors to make payment of all such amounts directly
to Secured Party, and, upon such notification and at the expense of such
Grantor, to enforce collection of any such amounts and to adjust, settle or
compromise the amount or payment thereof, in the same manner and to the same
extent as such Grantor might have done. 
After receipt by any Grantor of the notice from Secured Party referred
to in the proviso to the preceding sentence and upon the occurrence and during
the continuance of any Event of Default, (i) all amounts and proceeds
(including checks and Instruments) received by each Grantor in respect of
amounts due to such Grantor in respect of the Intellectual Property Collateral
or any portion thereof shall be received in trust for the benefit of Secured
Party hereunder, shall be segregated from other funds of such Grantor and shall
be forthwith paid over or delivered to Secured Party in the same form as so
received (with any necessary endorsement) 

 

XII-12

 

to be held as
cash Collateral and applied as provided by Section 17 hereof, and (ii) such
Grantor shall not adjust, settle or compromise the amount or payment of any
such amount or release wholly or partly any obligor with respect thereto or
allow any credit or discount thereon.

 

(c)           Each
Grantor shall have the duty diligently, through counsel reasonably acceptable
to Secured Party, to prosecute, file and/or make, unless and until such
Grantor, in its commercially reasonable judgment, decides otherwise, (i) any
application for registration relating to any of the Intellectual Property
Collateral owned, held or used by such Grantor and set forth on Schedules 8,
9 or 10 annexed hereto, as applicable, that is pending as of the
date of this Agreement, (ii) any Copyright Registration on any existing or
future unregistered but copyrightable works (except for works of nominal
commercial value or with respect to which such Grantor has determined in the
exercise of its commercially reasonable judgment that it shall not seek
registration), (iii) any application on any future patentable but
unpatented innovation or invention comprising Intellectual Property Collateral,
and (iv) any Trademark opposition and cancellation proceedings, renew
Trademark Registrations and Copyright Registrations and do any and all acts
which are necessary or desirable to preserve and maintain all rights in all
Intellectual Property Collateral.  Any
expenses incurred in connection therewith shall be borne solely by Grantors.  Subject to the foregoing, each Grantor shall
give Secured Party prior written notice of any abandonment of any material Intellectual
Property Collateral.

 

(d)           Except
as provided herein, each Grantor shall have the right to commence and prosecute
in its own name, as real party in interest, for its own benefit and at its own
expense, such suits, proceedings or other actions for infringement, unfair
competition, dilution, misappropriation or other damage, or reexamination or
reissue proceedings as are necessary to protect the Intellectual Property
Collateral.  Each Grantor shall promptly,
following its becoming aware thereof, notify Secured Party of the institution
of, or of any adverse determination in, any proceeding (whether in an IP Filing
Office or any federal, state, local or foreign court) or regarding such Grantor’s
ownership, right to use, or interest in any material Intellectual Property
Collateral.  Each Grantor shall provide
to Secured Party any information with respect thereto reasonably requested by
Secured Party.

 

(e)           In
addition to, and not by way of limitation of, the granting of a security
interest in the Collateral pursuant hereto, each Grantor, effective upon the
occurrence and during the continuance of an Event of Default, hereby assigns,
transfers and conveys to Secured Party the nonexclusive right and license to
use all Trademarks, tradenames, Copyrights, Patents or technical processes
(including, without limitation, the Intellectual Property Collateral) owned or
used by such Grantor that relate to the Collateral, together with any goodwill
associated therewith, all to the extent necessary to enable Secured Party to
realize on the Collateral in accordance with this Agreement and to enable any
transferee or assignee of the Collateral to enjoy the benefits of the
Collateral.  This right shall inure to
the benefit of all successors, assigns and transferees of Secured Party and its
successors, assigns and transferees, whether by voluntary conveyance, operation
of law, assignment, transfer, foreclosure, deed in lieu of foreclosure or
otherwise.  Such right and license shall
be granted free of charge, without requirement that any monetary payment
whatsoever be made to such Grantor.  If
and to the extent that any Grantor is permitted to license the Intellectual
Property Collateral, Secured Party shall promptly enter into a non-disturbance
agreement or other similar arrangement, at such Grantor’s request and expense,
with such Grantor and any licensee of any Intellectual Property 

 

XII-13

 

Collateral permitted
hereunder in form and substance reasonably satisfactory to Secured Party
pursuant to which (i) Secured Party shall agree not to disturb or
interfere with such licensee’s rights under its license agreement with such
Grantor so long as such licensee is not in default thereunder, and (ii) such
licensee shall acknowledge and agree that the Intellectual Property Collateral
licensed to it is subject to the security interest created in favor of Secured
Party and the other terms of this Agreement.

 

SECTION 11.             Collateral Account.

 

Secured Party
is hereby authorized to establish and maintain as a blocked account under the
sole dominion and control of Secured Party, a restricted Deposit Account
designated as “Maidenform Collateral Account”. 
All amounts at any time held in the Collateral Account shall be
beneficially owned by Grantors but shall be held in the name of Secured Party
hereunder, for the benefit of Beneficiaries, as collateral security for the
Secured Obligations upon the terms and conditions set forth herein.  Grantors shall have no right to withdraw,
transfer or, except as expressly set forth herein, otherwise receive any funds
deposited into the Collateral Account. 
Anything contained herein to the contrary notwithstanding, the
Collateral Account shall be subject to such applicable laws, and such
applicable regulations of the Board of Governors of the Federal Reserve System
and of any other appropriate banking or Government Authority, as may now or
hereafter be in effect.  All deposits of
funds in the Collateral Account shall be made by wire transfer (or, if
applicable, by intra-bank transfer from another account of a Grantor) of
immediately available funds, in each case addressed in accordance with
instructions of Secured Party.  Each
Grantor shall, promptly after initiating a transfer of funds to the Collateral
Account, give notice to Secured Party by telefacsimile of the date, amount and
method of delivery of such deposit.  Cash
held by Secured Party in the Collateral Account shall not be invested by
Secured Party but instead shall be maintained as a cash deposit in the
Collateral Account pending application thereof as elsewhere provided in this
Agreement.  To the extent permitted under
Regulation Q of the Board of Governors of the Federal Reserve System, any cash
held in the Collateral Account shall bear interest at the standard rate paid by
Secured Party to its customers for deposits of like amounts and terms.  Subject to Secured Party’s rights hereunder,
any interest earned on deposits of cash in the Collateral Account shall be
deposited directly in, and held in the Collateral Account.

 

SECTION 12.             Secured Party Appointed
Attorney-in-Fact.

 

Each Grantor
hereby irrevocably appoints Secured Party as such Grantor’s attorney-in-fact,
with full authority in the place and stead of such Grantor and in the name of
such Grantor, Secured Party or otherwise, from time to time in Secured Party’s
discretion to take any action and to execute any instrument that Secured Party
may deem necessary or advisable to accomplish the purposes of this Agreement,
including, without limitation:

 

(a)           upon
the occurrence and during the continuance of an Event of Default, to obtain and
adjust insurance required to be maintained by such Grantor or paid to Secured
Party pursuant to the Credit Agreement;

 

XII-14

 

(b)           upon
the occurrence and during the continuance of an Event of Default, to ask for,
demand, collect, sue for, recover, compound, receive and give acquittance and
receipts for moneys due and to become due under or in respect of any of the
Collateral;

 

(c)           upon
the occurrence and during the continuance of an Event of Default, to receive,
endorse and collect any drafts or other Instruments, Documents, Chattel Paper
and other documents in connection with clauses (a) and (b) above;

 

(d)           upon
the occurrence and during the continuance of an Event of Default, to file any
claims or take any action or institute any proceedings that Secured Party may
deem necessary or desirable for the collection of any of the Collateral or
otherwise to enforce or protect the rights of Secured Party with respect to any
of the Collateral;

 

(e)           upon
the occurrence and during the continuance of an Event of Default, to pay or
discharge taxes or Liens (other than taxes not required to be discharged
pursuant to the Credit Agreement and Liens permitted under this Agreement or
the Credit Agreement) levied or placed upon or threatened against the
Collateral, the legality or validity thereof and the amounts necessary to
discharge the same to be determined by Secured Party in its sole discretion,
any such payments made by Secured Party to become obligations of such Grantor
to Secured Party, due and payable immediately without demand;

 

(f)            upon
the occurrence and during the continuance of an Event of Default, to sign and
endorse any invoices, freight or express bills, bills of lading, storage or
warehouse receipts, drafts against debtors, assignments, verifications and
notices in connection with Accounts and other documents relating to the
Collateral; and

 

(g)           upon
the occurrence and during the continuance of an Event of Default, generally to
sell, transfer, pledge, make any agreement with respect to or otherwise deal
with any of the Collateral as fully and completely as though Secured Party were
the absolute owner thereof for all purposes, and to do, at Secured Party’s
option and Grantors’ expense, at any time or from time to time, all acts and
things that Secured Party deems necessary to protect, preserve or realize upon
the Collateral and Secured Party’s security interest therein in order to effect
the intent of this Agreement, all as fully and effectively as such Grantor
might do.

 

SECTION 13.             Secured Party May Perform.

 

If any Grantor
fails to perform any agreement contained herein, Secured Party may itself
perform, or cause performance of, such agreement, and the expenses of Secured
Party incurred in connection therewith shall be payable by Grantors under Section 18(b) hereof.

 

SECTION 14.             Standard of Care.

 

The powers
conferred on Secured Party hereunder are solely to protect its interest in the
Collateral and shall not impose any duty upon it to exercise any such
powers.  Except for the exercise of
reasonable care in the custody of any Collateral in its possession and the
accounting for moneys actually received by it hereunder, Secured Party shall
have no duty as to any Collateral or as to the taking of any necessary steps to
preserve rights against prior parties or any other rights pertaining to any
Collateral.  Secured Party shall be
deemed to have exercised

 

XII-15

 

reasonable
care in the custody and preservation of Collateral in its possession if such
Collateral is accorded treatment substantially equal to that which Secured
Party accords its own property.

 

SECTION 15.             Remedies.

 

(a)           Generally. 
If any Event of Default shall have occurred and be continuing, Secured
Party may, subject to Section 20 hereof, exercise in respect of the
Collateral, in addition to all other rights and remedies provided for herein or
otherwise available to it, all the rights and remedies of a secured party on
default under the UCC (whether or not the UCC applies to the affected
Collateral), and also may (i) require each Grantor to, and each Grantor
hereby agrees that it will at its expense and upon written request of Secured
Party forthwith, assemble all or part of the Collateral as directed by Secured
Party and make it available to Secured Party at a place to be designated by
Secured Party that is reasonably convenient to both parties, (ii) enter
onto the property where any Collateral is located and take possession thereof
with or without judicial process, (iii) prior to the disposition of the
Collateral, store, process, repair or recondition the Collateral or otherwise
prepare the Collateral for disposition in any manner to the extent Secured
Party deems appropriate, (iv) take possession of any Grantor’s premises or
place custodians in exclusive control thereof, remain on such premises and use
the same and any of such Grantor’s equipment for the purpose of completing any
work in process, taking any actions described in the preceding clause (iii) and
collecting any Secured Obligation, (v) without notice except as specified
below, sell the Collateral or any part thereof in one or more parcels at public
or private sale, at any of Secured Party’s offices or elsewhere, for cash, on
credit or for future delivery, at such time or times and at such price or
prices and upon such other terms as Secured Party may deem commercially
reasonable, (vi) exercise dominion and control over and refuse to permit
further withdrawals from any Deposit Account maintained with Secured Party or
any Lender and provide instructions directing the disposition of funds in Deposit
Accounts not maintained with Secured Party or any Lender and (vii) provide
entitlement orders with respect to Security Entitlements and other Investment
Property constituting a part of the Collateral and, without notice to any
Grantor, transfer to or register in the name of Secured Party or any of its
nominees any or all of the Securities Collateral.  Secured Party or any Lender or Swap
Counterparty may be the purchaser of any or all of the Collateral at any such sale
and Secured Party, as agent for and representative of Lenders and Swap
Counterparties (but not any Lender or Swap Counterparty in its individual
capacity unless Requisite Obligees shall otherwise agree in writing), shall be
entitled, for the purpose of bidding and making settlement or payment of the
purchase price for all or any portion of the Collateral sold at any such public
sale, to use and apply any of the Secured Obligations as a credit on account of
the purchase price for any Collateral payable by Secured Party at such sale.  Each purchaser at any such sale shall hold
the property sold absolutely free from any claim or right on the part of any
Grantor, and each Grantor hereby waives (to the extent permitted by applicable
law) all rights of redemption, stay and/or appraisal which it now has or may at
any time in the future have under any rule of law or statute now existing
or hereafter enacted.  Each Grantor
agrees that, to the extent notice of sale shall be required by law, at least
ten days’ notice to such Grantor of the time and place of any public sale or
the time after which any private sale is to be made shall constitute reasonable
notification.  Secured Party shall not be
obligated to make any sale of Collateral regardless of notice of sale having
been given.  Secured Party may adjourn
any public or private sale from time to time by announcement at the time and
place fixed therefor, and such sale may, without further notice, be made at the
time and place to which it was so adjourned. 
Each Grantor hereby 

 

XII-16

 

waives any
claims against Secured Party arising by reason of the fact that the price at
which any Collateral may have been sold at such a private sale was less than
the price which might have been obtained at a public sale, even if Secured
Party accepts the first offer received and does not offer such Collateral to
more than one offeree.  If the proceeds
of any sale or other disposition of the Collateral are insufficient to pay all
the Secured Obligations, Grantors shall be jointly and severally liable for the
deficiency and the fees of any attorneys employed by Secured Party to collect
such deficiency.  Each Grantor further
agrees that a breach of any of the covenants contained in this Section 15
will cause irreparable injury to Secured Party, that Secured Party has no
adequate remedy at law in respect of such breach and, as a consequence, that
each and every covenant contained in this Section shall be specifically
enforceable against such Grantor, and each Grantor hereby waives and agrees not
to assert any defenses against an action for specific performance of such
covenants except for a defense that no default has occurred giving rise to the
Secured Obligations becoming due and payable prior to their stated maturities.

 

(b)           Securities Collateral.  Each Grantor recognizes that, by reason of
certain prohibitions contained in the Securities Act and applicable state
securities laws, Secured Party may be compelled, with respect to any sale of
all or any part of the Securities Collateral conducted without prior
registration or qualification of such Securities Collateral under the
Securities Act and/or such state securities laws, to limit purchasers to those
who will agree, among other things, to acquire the Securities Collateral for their
own account, for investment and not with a view to the distribution or resale
thereof.  Each Grantor acknowledges that
any such private placement may be at prices and on terms less favorable than
those obtainable through a sale without such restrictions (including an
offering made pursuant to a registration statement under the Securities Act)
and, notwithstanding such circumstances, each Grantor agrees that any such
private placement shall not be deemed, in and of itself, to be commercially
unreasonable and that Secured Party shall have no obligation to delay the sale
of any Securities Collateral for the period of time necessary to permit the
issuer thereof to register it for a form of sale requiring registration under
the Securities Act or under applicable state securities laws, even if such
issuer would, or should, agree to so register it.  If Secured Party determines to exercise its
right to sell any or all of the Securities Collateral, upon written request,
each Grantor shall and shall cause each issuer of any Securities Collateral to
be sold hereunder from time to time to furnish to Secured Party all such
information as Secured Party may request in order to determine the amount of
Securities Collateral which may be sold by Secured Party in exempt transactions
under the Securities Act and the rules and regulations of the Securities
and Exchange Commission thereunder, as the same are from time to time in
effect.

 

(c)           Collateral Account.  If an Event of Default has occurred and is
continuing and, in accordance with Section 8 of the Credit Agreement,
Company is required to pay to Secured Party an amount (the “Aggregate Available Amount”) equal to the
maximum amount that may at any time be drawn under all Letters of Credit then
outstanding under the Credit Agreement, Company shall deliver funds in such an
amount for deposit in the Collateral Account. 
If for any reason the aggregate amount delivered by Company for deposit
in the Collateral Account as aforesaid is less than the Aggregate Available
Amount, the aggregate amount so delivered by Company shall be apportioned among
all outstanding Letters of Credit for purposes of this Section in
accordance with the ratio of the maximum amount available for drawing under
each such Letter of Credit (as to such Letter of Credit, the “Maximum Available Amount”) to the
Aggregate Available Amount.  Upon any
drawing under any outstanding Letter 

 

XII-17

 

of Credit in
respect of which Company has deposited in the Collateral Account an amount
described above, Secured Party shall apply the amount apportioned to such
Letter of Credit to reimburse the Issuing Lender for the amount of such
drawing.  In the event of cancellation or
expiration of any Letter of Credit in respect of which Company has deposited in
the Collateral Account any amounts described above, or in the event of any
reduction in the Maximum Available Amount under such Letter of Credit, Secured
Party shall apply the amount then on deposit in the Collateral Account in respect
of such Letter of Credit (less, in the case of such a reduction, the Maximum
Available Amount under such Letter of Credit immediately after such reduction)
first, to the payment of any amounts payable to Secured Party pursuant to Section 17
hereof, second, to the extent of any excess, to the cash collateralization
pursuant to the terms of this Agreement of any outstanding Letters of Credit in
respect of which Company has failed to pay all or a portion of the amounts
described above (such cash collateralization to be apportioned among all such
Letters of Credit in the manner described above), third, to the extent of any
further excess, to the payment of any other outstanding Secured Obligations in
such order as Secured Party shall elect, and fourth, to the extent of any
further excess, to the payment to whomsoever shall be lawfully entitled to
receive such funds.

 

SECTION 16.             Additional Remedies for Intellectual
Property Collateral.

 

(a)           Anything
contained herein to the contrary notwithstanding, upon the occurrence and
during the continuation of an Event of Default, (i) Secured Party shall
have the right (but not the obligation) to bring suit, in the name of any
Grantor, Secured Party or otherwise, to enforce any Intellectual Property
Collateral, in which event each Grantor shall, at the request of Secured Party,
do any and all lawful acts and execute any and all documents required by
Secured Party in aid of such enforcement and each Grantor shall promptly, upon
demand, reimburse and indemnify Secured Party as provided in subsections 10.2
and 10.3 of the Credit Agreement and Section 18 hereof, as applicable, in
connection with the exercise of its rights under this Section 16, and, to
the extent that Secured Party shall elect not to bring suit to enforce any
Intellectual Property Collateral as provided in this Section, each Grantor
agrees to use all reasonable measures, whether by action, suit, proceeding or
otherwise, to prevent the infringement of any of the Intellectual Property
Collateral by others and for that purpose agrees to use its commercially
reasonable judgment in maintaining any action, suit or proceeding against any
Person so infringing reasonably necessary to prevent such infringement; (ii) upon
written demand from Secured Party, each Grantor shall execute and deliver to
Secured Party an assignment or assignments of the Intellectual Property
Collateral and such other documents as are necessary or appropriate to carry
out the intent and purposes of this Agreement; (iii) each Grantor agrees
that such an assignment and/or recording shall be applied to reduce the Secured
Obligations outstanding only to the extent that Secured Party (or any Lender)
receives cash proceeds in respect of the sale of, or other realization upon,
the Intellectual Property Collateral; and (iv) within five Business Days
after written notice from Secured Party, each Grantor shall make available to
Secured Party, to the extent within such Grantor’s power and authority, such
personnel in such Grantor’s employ as Secured Party may reasonably designate,
by name, title or job responsibility, to permit such Grantor to continue,
directly or indirectly, to produce, advertise and sell the products and
services sold or delivered by such Grantor under or in connection with the
Trademarks, Trademark Registrations and Trademark Rights, such persons to be
available to perform their prior functions on Secured Party’s behalf and to be
compensated by Secured Party 

 

XII-18

 

at such
Grantor’s expense on a per diem, pro-rata basis consistent with the salary and
benefit structure applicable to each as of the date of such Event of Default.

 

(b)           If
(i) an Event of Default shall have occurred and, by reason of cure,
waiver, modification, amendment or otherwise, no longer be continuing, (ii) no
other Event of Default shall have occurred and be continuing, (iii) an
assignment to Secured Party of any rights, title and interests in and to the
Intellectual Property Collateral shall have been previously made, and (iv) the
Secured Obligations shall not have become immediately due and payable, upon the
written request of any Grantor, Secured Party shall promptly execute and
deliver to such Grantor such assignments as may be necessary to reassign to
such Grantor any such rights, title and interests as may have been assigned to
Secured Party as aforesaid, subject to any disposition thereof that may have
been made by Secured Party; provided, after giving effect to such reassignment,
Secured Party’s security interest granted pursuant hereto, as well as all other
rights and remedies of Secured Party granted hereunder, shall continue to be in
full force and effect; and provided further, the rights, title and interests so
reassigned shall be free and clear of all Liens other than Liens (if any)
encumbering such rights, title and interest at the time of their assignment to
Secured Party and Permitted Encumbrances.

 

SECTION 17.             Application of Proceeds.

 

Except as expressly provided elsewhere in this Agreement, all proceeds
received by Secured Party in respect of any sale of, collection from, or other
realization upon all or any part of the Collateral shall be applied as provided
in the Credit Agreement.

 

SECTION 18.             Indemnity and Expenses.

 

(a)           Grantors
jointly and severally agree to indemnify Secured Party, each Lender and each
Swap Counterparty from and against any and all claims, losses and liabilities
in any way relating to, growing out of or resulting from this Agreement and the
transactions contemplated hereby (including, without limitation, enforcement of
this Agreement), except to the extent such claims, losses or liabilities result
solely from Secured Party’s or such Lender’s or Swap Counterparty’s gross
negligence or willful misconduct as finally determined by a court of competent
jurisdiction.

 

(b)           Grantors
jointly and severally agree to pay to Secured Party upon demand the amount of
any and all costs and expenses in accordance with subsection 10.2 of the
Credit Agreement.

 

(c)           The
obligations of Grantors in this Section 18 shall (i) survive the
termination of this Agreement and the discharge of Grantors’ other obligations
under this Agreement, the Lender Swap Agreements, the Credit Agreement and the
other Loan Documents and (ii), as to any Grantor that is a party to a Guaranty,
be subject to the provisions of Section 1(b) thereof.

 

XII-19

 

SECTION 19.             Continuing Security Interest; Transfer
of Loans; Termination and Release.

 

(a)           This
Agreement shall create a continuing security interest in the Collateral and
shall (i) remain in full force and effect until the payment in full of the
Secured Obligations, the cancellation or termination of the Commitments and the
cancellation or expiration of all outstanding Letters of Credit (or the cash
collateralization thereof), (ii) be binding upon Grantors and their
respective successors and assigns, and (iii) inure, together with the
rights and remedies of Secured Party hereunder, to the benefit of Secured Party
and its successors, transferees and assigns. 
Without limiting the generality of the foregoing clause (iii), (A) but
subject to the provisions of subsection 10.1 of the Credit Agreement, any
Lender may assign or otherwise transfer any Loans held by it to any other
Person, and such other Person shall thereupon become vested with all the
benefits in respect thereof granted to Lenders herein or otherwise and (B) any
Swap Counterparty may assign or otherwise transfer any Lender Swap Agreement to
which it is a party to any other Person in accordance with the terms of such
Lender Swap Agreement, and such other Person shall thereupon become vested with
all the benefits in respect thereof granted to Swap Counterparties herein or
otherwise.

 

(b)           Upon
the payment in full of all Secured Obligations (other than Unasserted
Obligations), the cancellation or termination of the Commitments and the
cancellation or expiration of all outstanding Letters of Credit (or the cash
collateralization thereof), the security interest granted hereby (other than
with respect to any cash collateral in respect of Letters of Credit) shall
terminate and all rights to the Collateral shall revert to the applicable
Grantors.  Upon any such termination
Secured Party will, at Grantors’ expense, execute and deliver to Grantors such
documents as Grantors shall reasonably request to evidence such
termination.  In addition, upon the
proposed sale or other disposition of any Collateral by a Grantor in accordance
with the Credit Agreement for which such Grantor desires a security interest
release from Secured Party, such a release may be obtained pursuant to the
provisions of subsection 10.14 of the Credit Agreement, provided that to
the extent subsection 10.14 of the Credit Agreement does not require
Grantors to comply with any additional steps for the release of security
interests created hereunder upon the proposed sale or other disposition of any
Collateral to any Person (other than an Affiliate of Company) that is permitted
by the Loan Documents or to which Requisite Lenders have otherwise consented,
or the sale or other disposition of all of the Capital Stock of a Subsidiary
Guarantor to any Person (other than an Affiliate of Company) that is permitted
by the Loan Documents or to which Requisite Lenders have otherwise consented, such
security interests shall be automatically released upon the sale of such
Collateral.

 

SECTION 20.             Secured Party as Agent.

 

(a)           Secured
Party has been appointed to act as Secured Party hereunder by Lenders and, by
their acceptance of the benefits hereof, Swap Counterparties.  Secured Party shall be obligated, and shall
have the right hereunder, to make demands, to give notices, to exercise or
refrain from exercising any rights, and to take or refrain from taking any
action (including, without limitation, the release or substitution of
Collateral), solely in accordance with this Agreement and the Credit Agreement;
provided that Secured Party shall exercise, or refrain from exercising, any
remedies provided for in Section 15 hereof in accordance with the 

 

XII-20

 

instructions
of Requisite Obligees.  In furtherance of
the foregoing provisions of this Section 20(a), each Swap Counterparty, by
its acceptance of the benefits hereof, agrees that it shall have no right
individually to realize upon any of the Collateral hereunder, it being
understood and agreed by such Swap Counterparty that all rights and remedies
hereunder may be exercised solely by Secured Party for the benefit of Lenders
and Swap Counterparties in accordance with the terms of this Section 20(a).

 

(b)           Secured
Party shall at all times be the same Person that is Administrative Agent under
the Credit Agreement.  Written notice of
resignation by Administrative Agent pursuant to subsection 9.5 of the Credit
Agreement shall also constitute notice of resignation as Secured Party under
this Agreement; and appointment of a successor Administrative Agent pursuant to
subsection 9.5 of the Credit Agreement shall also constitute appointment
of a successor Secured Party under this Agreement.  Upon the acceptance of any appointment as
Administrative Agent under subsection 9.5 of the Credit Agreement by a
successor Administrative Agent, that successor Administrative Agent shall
thereupon succeed to and become vested with all the rights, powers, privileges
and duties of the retiring Secured Party under this Agreement, and the retiring
Secured Party under this Agreement shall promptly (i) transfer to such
successor Secured Party all sums, securities and other items of Collateral held
hereunder, together with all records and other documents necessary or
appropriate in connection with the performance of the duties of the successor
Secured Party under this Agreement, and (ii) execute (if necessary) and
deliver to such successor Secured Party such amendments to financing
statements, and take such other actions, as may be necessary or appropriate in
connection with the assignment to such successor Secured Party of the security
interests created hereunder, whereupon such retiring Secured Party shall be
discharged from its duties and obligations under this Agreement.  After any retiring or removed Administrative
Agent’s resignation hereunder as Secured Party, the provisions of this
Agreement shall inure to its benefit as to any actions taken or omitted to be
taken by it under this Agreement while it was Secured Party hereunder.

 

(c)           Secured
Party shall not be deemed to have any duty whatsoever with respect to any Swap
Counterparty until it shall have received written notice in form and substance
satisfactory to Secured Party from a Grantor or the Swap Counterparty as to the
existence and terms of the applicable Lender Swap Agreement.

 

SECTION 21.             Additional Grantors.

 

The initial
Grantors hereunder shall be Company, Holdings and such of the Subsidiaries of
Company as are signatories hereto on the date hereof.  From time to time subsequent to the date
hereof, additional Subsidiaries of Company may become Additional Grantors, by
executing a Counterpart.  Upon delivery
of any such Counterpart to Secured Party, notice of which is hereby waived by
Grantors, each such Additional Grantor shall be a Grantor and shall be as fully
a party hereto as if such Additional Grantor were an original signatory
hereto.  Each Grantor expressly agrees that
its obligations arising hereunder shall not be affected or diminished by the
addition or release of any other Grantor hereunder, nor by any election of
Secured Party not to cause any Subsidiary of Company to become an Additional
Grantor hereunder.  This Agreement shall
be fully effective as to any Grantor that is or becomes a party 

 

XII-21

 

hereto
regardless of whether any other Person becomes or fails to become or ceases to
be a Grantor hereunder.

 

SECTION 22.             Amendments; Etc.

 

No amendment,
modification, termination or waiver of any provision of this Agreement, and no
consent to any departure by any Grantor therefrom, shall in any event be
effective unless the same shall be in writing and signed by Secured Party and,
in the case of any such amendment or modification, by Grantors; provided
this Agreement may be modified by the execution of a Counterpart by an
Additional Grantor in accordance with Section 21 hereof and Grantors
hereby waive any requirement of notice of or consent to any such
amendment.  Any such waiver or consent
shall be effective only in the specific instance and for the specific purpose
for which it was given.

 

SECTION 23.             Notices.

 

Any notice or
other communication herein required or permitted to be given shall be in
writing and may be personally served or sent by telefacsimile or United States
mail or courier service and shall be deemed to have been given when delivered
in person or by courier service, upon receipt of telefacsimile, or three
Business Days after depositing it in the United States mail with postage
prepaid and properly addressed; provided that notices to Secured Party
shall not be effective until received. 
For the purposes hereof, the address of each party hereto shall be as
provided in subsection 10.8 of the Credit Agreement or as set forth under
such party’s name on the signature pages hereof or such other address as
shall be designated by such party in a written notice delivered to the other
parties hereto.

 

SECTION 24.             Failure or Indulgence Not Waiver;
Remedies Cumulative.

 

No failure or
delay on the part of Secured Party in the exercise of any power, right or
privilege hereunder shall impair such power, right or privilege or be construed
to be a waiver of any default or acquiescence therein, nor shall any single or
partial exercise of any such power, right or privilege preclude any other or
further exercise thereof or of any other power, right or privilege.  All rights and remedies existing under this
Agreement are cumulative to, and not exclusive of, any rights or remedies
otherwise available.

 

SECTION 25.             Severability.

 

In case any
provision in or obligation under this Agreement shall be invalid, illegal or
unenforceable in any jurisdiction, the validity, legality and enforceability of
the remaining provisions or obligations, or of such provision or obligation in
any other jurisdiction, shall not in any way be affected or impaired thereby.

 

SECTION 26.             Headings.

 

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

 

XII-22

 

SECTION 27.             Governing Law; Rules of Construction.

 

THIS AGREEMENT
AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY,
AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF
THE STATE OF NEW YORK (INCLUDING, WITHOUT LIMITATION, SECTION 5-1401 OF
THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK), EXCEPT TO THE EXTENT
THAT THE UCC PROVIDES THAT THE PERFECTION OF THE SECURITY INTEREST HEREUNDER,
OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE GOVERNED BY
THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK, IN WHICH CASE THE
LAWS OF SUCH JURISDICTION SHALL GOVERN WITH RESPECT TO THE PERFECTION OF THE
SECURITY INTEREST IN, OR THE REMEDIES WITH RESPECT TO, SUCH PARTICULAR
COLLATERAL.  The rules of
construction set forth in subsection 1.3 of the Credit Agreement shall be
applicable to this Agreement mutatis
mutandis.

 

SECTION 28.             Consent to Jurisdiction and Service of
Process.

 

ALL JUDICIAL
PROCEEDINGS BROUGHT AGAINST ANY GRANTOR ARISING OUT OF OR RELATING TO THIS
AGREEMENT, OR ANY OBLIGATIONS HEREUNDER, MAY BE BROUGHT IN ANY STATE OR
FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE, COUNTY AND CITY OF NEW
YORK BY EXECUTING AND DELIVERING THIS AGREEMENT, EACH GRANTOR, FOR ITSELF AND
IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY (I) ACCEPTS GENERALLY AND
UNCONDITIONALLY THE NONEXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS;
(II) WAIVES ANY DEFENSE OF FORUM NON
CONVENIENS; (III) AGREES THAT SERVICE OF ALL PROCESS IN ANY
SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED
MAIL, RETURN RECEIPT REQUESTED, TO SUCH GRANTOR AT ITS ADDRESS PROVIDED IN
ACCORDANCE WITH SECTION 23 HEREOF; (IV) AGREES THAT SERVICE AS
PROVIDED IN CLAUSE (III) ABOVE IS SUFFICIENT TO CONFER PERSONAL JURISDICTION
OVER SUCH GRANTOR IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE
CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT; (V) AGREES
THAT SECURED PARTY RETAINS THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST SUCH GRANTOR IN THE COURTS OF
ANY OTHER JURISDICTION; AND (VI) AGREES THAT THE PROVISIONS OF THIS SECTION 28
RELATING TO JURISDICTION AND VENUE SHALL BE BINDING AND ENFORCEABLE TO THE
FULLEST EXTENT PERMISSIBLE UNDER NEW YORK GENERAL OBLIGATIONS LAW SECTION 5-1402
OR OTHERWISE.

 

SECTION 29.             Waiver of Jury Trial.

 

GRANTORS AND
SECURED PARTY HEREBY AGREE TO WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF
ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT.  THE SCOPE OF THIS WAIVER IS INTENDED TO BE
ALL ENCOMPASSING OF ANY AND ALL DISPUTES 

 

XII-23

 

THAT MAY BE
FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION,
INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY
CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS.  EACH GRANTOR AND SECURED PARTY ACKNOWLEDGE
THAT THIS WAIVER IS A MATERIAL INDUCEMENT FOR GRANTORS AND SECURED PARTY TO
ENTER INTO A BUSINESS RELATIONSHIP, THAT GRANTORS AND SECURED PARTY HAVE ALREADY
RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH WILL
CONTINUE TO RELY ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS.  EACH GRANTOR AND SECURED PARTY FURTHER
WARRANT AND REPRESENT THAT EACH HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL,
AND THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING
CONSULTATION WITH LEGAL COUNSEL.  THIS
WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY
OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO
THIS SECTION 29 AND EXECUTED BY EACH OF THE PARTIES HERETO), AND THIS
WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR
MODIFICATIONS TO THIS AGREEMENT.  In the
event of litigation, this Agreement may be filed as a written consent to a
trial by the court.

 

SECTION 30.             Counterparts.

 

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

 

SECTION 31.             Definitions.

 

(a)           Each
capitalized term utilized in this Agreement that is not defined in the Credit
Agreement or in this Agreement, but that is defined in the UCC, including the
categories of Collateral listed in Section 1 hereof, shall have the
meaning set forth in Articles1, 8 or 9 of the UCC.

 

(b)           In
addition, the following terms used in this Agreement shall have the following
meanings:

 

“Additional
Grantor” means a Subsidiary of Company that becomes a
party hereto after the date hereof as an additional Grantor by executing a
Counterpart.

 

 “Beneficiary” means
Administrative Agent, and each Lender and each Swap Counterparty.

 

“Collateral”
has the meaning set forth in Section 1 hereof.

 

“Collateral
Account” means the “Maidenform Collateral Account”
established pursuant to Section 11.

 

XII-24

 

“Copyrights”
means all items under copyright in various published and unpublished works of
authorship including, without limitation, computer programs, computer data
bases, other computer software layouts, trade dress, drawings, designs,
writings, and formulas (including, without limitation, the works set forth on Schedule 10
annexed hereto, as the same may be amended pursuant hereto from time to time).

 

“Copyright
Registrations” means all Copyright registrations
issued to any Grantor and applications for copyright registration that have
been or may hereafter be issued or applied for thereon in the United States and
in foreign countries, but in the case of such foreign countries only to the
extent such registration in such foreign country relates to a Copyright that is
not registered in the United States (including, without limitation, the
registrations and applications set forth on Schedule 10 annexed
hereto, as the same may be amended pursuant hereto from time to time).

 

“Copyright
Rights” means all common law and other rights in and
to the Copyrights in the United States and any state thereof and in foreign
countries including all copyright licenses (but with respect to such copyright
licenses, only to the extent permitted by such licensing arrangements), the
right (but not the obligation) to renew and extend Copyright Registrations and
any such rights and to register works protectable by copyright and the right
(but not the obligation) to sue in the name of any Grantor or in the name of
Secured Party or Lenders for past, present and future infringements of the
Copyrights and any such rights.

 

“Counterpart”
means a counterpart to this Agreement entered into by a Subsidiary of Company
pursuant to Section 21 hereof.

 

“Credit
Agreement” has the meaning set forth in the
Preliminary Statements of this Agreement.

 

“Equity
Interests” means all shares of stock, partnership
interests, interests in Joint Ventures, limited liability company interests and
all other equity interests in a Person, whether such stock or interests are
classified as Investment Property or General Intangibles under the UCC.

 

“Event
of Default” means any Event of Default as defined in
the Credit Agreement or, after payment in full of all Obligations under the
Credit Agreement and the other Loan Documents, the cancellation or expiration
of all Letters of Credit and the termination of the Commitments, the occurrence
of an Early Termination Date (as defined in a Master Agreement in the form
prepared by the International Swap and Derivatives Association, Inc. or a
similar event under any similar swap agreement) under any Lender Swap
Agreement.

 

“Grant”
means a Grant of Trademark Security Interest, substantially in the form of Exhibit I
annexed hereto, and a Grant of Patent Security Interest, substantially in the
form of Exhibit II annexed hereto, and a Grant of Copyright Security
Interest, substantially in the form of Exhibit III annexed hereto.

 

“Intellectual
Property Collateral” means, with respect to any
Grantor all right, title and interest (including rights acquired pursuant to a
license or otherwise but only to the extent permitted by agreements governing
such license or other use) in and to all

 

XII-25

 

(a)           Copyrights,
Copyright Registrations and Copyright Rights, including, without limitation,
each of the Copyrights, rights, titles and interests in and to the Copyrights,
all derivative works and other works protectable by copyright, which are
presently, or in the future may be, owned, created (as a work for hire for the
benefit of such Grantor), authored (as a work for hire for the benefit of such
Grantor), or acquired by such Grantor, in whole or in part, and all Copyright
Rights with respect thereto and all Copyright Registrations therefor,
heretofore or hereafter granted or applied for, and all renewals and extensions
thereof, throughout the world, including all proceeds thereof (such as, by way
of example and not by limitation, license royalties and proceeds of
infringement suits),

 

(b)           Patents;

 

(c)           Trademarks,
Trademark Registrations, the Trademark Rights and goodwill of such Grantor’s
business symbolized by the Trademarks and associated therewith; and

 

(d)           all
trade secrets, trade secret rights, know-how, customer lists, processes of
production, ideas, confidential business information, techniques, processes,
formulas, and all other proprietary information.

 

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

 

“IP
Supplement” means an IP Supplement, substantially in
the form of Exhibit V annexed hereto.

 

“Lender
Swap Agreement” means an Interest Rate Agreement,
Currency Agreement or other swap agreement between Company or a Subsidiary of
Company and a Swap Counterparty.

 

“Patent
Registrations” means all Patents that have been or may
hereafter be issued or applied for thereon in the United States and in foreign
countries, but in the case of such foreign countries only to the extent such
registration in such foreign country relates to a Patent that is not registered
in the United States (including, without limitation, the registrations and
applications set forth on Schedule 10 annexed hereto).

 

“Patents”
means all patents and patent applications and rights and interests in patents
and patent applications under any domestic or foreign law that are presently,
or in the future may be, owned or held by a Grantor and all patents and patent
applications and rights, title and interests in patents and patent applications
under any domestic or foreign law that are presently, or in the future may be,
owned by such Grantor in whole or in part (including, without limitation, the
patents and patent applications set forth on Schedule 9 annexed
hereto), all rights (but not obligations) corresponding thereto to sue for
past, present and future infringements and all re-issues, divisions,
continuations, renewals, extensions and continuations-in-part thereof.

 

“Pledged
Debt” means the Indebtedness from time to time owed to
a Grantor, including the Indebtedness set forth on Schedule 7
annexed hereto and issued by the obligors named 

 

XII-26

 

therein, the
Instruments and certificates evidencing such Indebtedness and all interest,
cash or other property received, receivable or otherwise distributed in respect
of or exchanged therefor.

 

“Pledged
Equity” means all Equity Interests now or hereafter
owned by a Grantor, including all securities convertible into, and rights,
warrants, options and other rights to purchase or otherwise acquire, any of the
foregoing, including those owned on the date hereof and set forth on Schedule 6
annexed hereto, the certificates or other instruments representing any of the
foregoing and any interest of such Grantor in the entries on the books of any
securities intermediary pertaining thereto and all distributions, dividends and
other property received, receivable or otherwise distributed in respect of or
exchanged therefor.

 

“Pledged
Subsidiary Debt” means Pledged Debt owed to a Grantor
by any obligor that is, or becomes, a direct or indirect Subsidiary of such
Grantor, of which such Grantor is a direct or indirect Subsidiary or that
controls, is controlled by or under common control with such Grantor.

 

“Pledged
Subsidiary Equity” means Pledged Equity in a Person
that is, or becomes a direct Subsidiary of a Grantor.

 

“Pledge
Supplement” means a Pledge Supplement, in
substantially the form of Exhibit IV annexed hereto, in respect of
the additional Pledged Equity or Pledged Debt pledged pursuant to this
Agreement.

 

“Requisite
Obligees” means either (i) Requisite Lenders or
(ii), after payment in full of all Obligations under the Credit Agreement and
the other Loan Documents, the cancellation or expiration of all Letters of
Credit and the termination of the Commitments, the holders of a majority of (A) the
aggregate notional amount under all Lender Swap Agreements (including Lender
Swap Agreements that have been terminated) or (B) if all Lender Swap
Agreements have been terminated in accordance with their terms, the aggregate
amount then due and payable (exclusive of expenses and similar payments but
including any early termination payments then due) under such Lender Swap
Agreements.

 

“Secured
Obligations” has the meaning set forth in Section 2
hereof.

 

“Securities Collateral” means, with respect
to any Grantor, the Pledged Equity, the Pledged Debt and any other Investment
Property in which such Grantor has an interest.

 

“Swap
Counterparty” means a Person that enters into a swap
agreement with Company or a Subsidiary and is a Lender or an Affiliate of a
Lender at the time such agreement is entered into.

 

“Trademarks”
means all trademarks, service marks, designs, logos, indicia, tradenames, trade
dress, corporate names, company names, business names, fictitious business
names, trade styles and/or other source and/or business identifiers and
applications pertaining thereto, owned by such Grantor, or hereafter adopted
and used, in its business (including, without limitation, the trademarks
specifically set forth on Schedule 10 annexed hereto).

 

XII-27

 

“Trademark
Registrations” means all Trademark registrations that
have been or may hereafter be issued or applied for thereon in the United
States and in foreign countries, but in the case of such foreign countries only
to the extent such registration in such foreign country relates to a Trademark
that is not registered in the United States (including, without limitation, the
registrations and applications set forth on Schedule 10 annexed
hereto).

 

“Trademark
Rights” means all common law and other rights (but in
no event any of the obligations) in and to the Trademarks in the United States
and any state thereof and in foreign countries.

 

“UCC”
means the Uniform Commercial Code, as it exists on the date of this Agreement
or as it may hereafter be amended, in the State of New York or when the context
applies, the Uniform Commercial Code as in effect from time to time in any other
applicable jurisdiction.

 

[Remainder of page intentionally left blank]

 

XII-28

 

IN
WITNESS WHEREOF, Grantors and Secured Party have
caused this Agreement to be duly executed and delivered by their respective
officers thereunto duly authorized as of the date first written above.

 

	
   

  	
  MF MERGER
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Each of the
  entities listed on Schedule A annexed

  hereto

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  on behalf of each of the entities listed on

  Schedule A annexed hereto

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MF ACQUISITION
  CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BNP PARIBAS, as
  Administrative Agent as

  Secured Party

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

XII-S-1

 

SCHEDULE A

TO

SECURITY AGREEMENT

 

	
  Name

  	
   

  	
  Notice Address for each Grantor

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

XII-Schedule A-1

 

SCHEDULE 1

TO

SECURITY AGREEMENT

 

Commercial Tort Claims

 

XII-Schedule 1-1

 

SCHEDULE 2

TO

SECURITY AGREEMENT

 

Filing Offices

 

	
  Grantor

  	
   

  	
  Filing Offices

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

XII-Schedule 2-1

 

SCHEDULE 3

TO

SECURITY AGREEMENT

 

Office Locations, Type and Jurisdiction of Organization

 

	
  Name of

  Grantor

  	
   

  	
  Type of

  Organization

  	
   

  	
  Office

  Locations(1)

  	
   

  	
  Jurisdiction of

  Organization

  	
   

  	
  Organization

  Number

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(1)           List
principal place of business, chief executive office and office where records
regarding Accounts, Intellectual Property and Chattel Paper are kept.

 

XII-Schedule 3-1

 

SCHEDULE 4

TO

SECURITY AGREEMENT

 

Locations of Equipment and Inventory

 

	
  Name of Grantor

  	
   

  	
  Locations of Equipment and Inventory

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

XII-Schedule 4-1

 

SCHEDULE 5

TO

SECURITY AGREEMENT

 

Other Names

 

	
  Name
  of Grantor

  	
   

  	
  Other Names

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

XII-Schedule 5-1

 

SCHEDULE 6

TO

SECURITY AGREEMENT

 

	
  Equity
  Issuer

  	
   

  	
  Class

  of

  Equity

  	
   

  	
  Equity

  Certificate Nos.

  	
   

  	
  Par

  Value

  	
   

  	
  Amount of

  Equity Interests

  	
   

  	
  Percentage of

  Outstanding

  Equity Pledged

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

XII-Schedule 6-1

 

SCHEDULE 7

TO

SECURITY AGREEMENT

 

	
  Debt
  Issuer

  	
   

  	
  Amount of

  Indebtedness

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

XII-Schedule 7-1

 

SCHEDULE 8

TO

SECURITY AGREEMENT

 

U.S.
Trademarks:

 

	
  Registered
  Owner

  	
   

  	
  Trademark

  Description

  	
   

  	
  Registration

  Number

  	
   

  	
  Registration

  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Foreign
Trademarks:

 

	
  Registered
  Owner

  	
   

  	
  Trademark

  Description

  	
   

  	
  Registration

  Number

  	
   

  	
  Registration

  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

XII-Schedule 8-1

 

SCHEDULE 9

TO

SECURITY AGREEMENT

 

U.S.
Patents Issued:

 

	
  Patent No.

  	
   

  	
  Issue Date

  	
   

  	
  Title

  	
   

  	
  Inventor(s)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

U.S.
Patents Pending:

 

	
  Date Filed

  	
   

  	
  Application

  Number

  	
   

  	
  Title

  	
   

  	
  Inventor(s)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Foreign
Patents Issued:

 

	
  Country

  	
   

  	
  Patent No.

  	
   

  	
  Issue Date

  	
   

  	
  Title

  	
   

  	
  Inventor(s)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Foreign
Patents Pending:

 

	
  Country

  	
   

  	
  Applicant’s

  Name

  	
   

  	
  Date

  Filed

  	
   

  	
  Application

  Number

  	
   

  	
  Title

  	
   

  	
  Inventor(s)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

XI-Schedule 9-1

 

SCHEDULE 10

TO

SECURITY AGREEMENT

 

U.S.
Copyright Registrations:

 

	
  Title

  	
   

  	
  Registration No.

  	
   

  	
  Date of Issue

  	
   

  	
  Registered Owner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Foreign
Copyright Registrations:

 

	
  Country

  	
   

  	
  Title

  	
   

  	
  Registration No.

  	
   

  	
  Date of Issue

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pending
U.S. Copyright Registration Applications:

 

	
  Title

  	
   

  	
  Appl. No.

  	
   

  	
  Date of Application

  	
   

  	
  Copyright Claimant

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pending
Foreign Copyright Registration Applications:

 

	
  Country

  	
   

  	
  Title

  	
   

  	
  Appl. No.

  	
   

  	
  Date of Application

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

XII-Schedule 10-1

 

SCHEDULE 11

TO

SECURITY AGREEMENT

 

Deposit Accounts, Securities Accounts,
Commodity Accounts

 

	
  Type of Account

  	
   

  	
  Depository Bank or

  Securities Intermediary

  	
   

  	
  Address of Depository Bank

  or Securities Intermediary

  	
   

  	
  Account Number

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

XII-Schedule 11-1

 

SCHEDULE 12 

TO

SECURITY AGREEMENT

 

Chattel Paper

 

XII-Schedule 12-1

 

SCHEDULE 13 

TO

SECURITY AGREEMENT

 

Letter-of-Credit Rights

 

XII-Schedule 13-1

 

SCHEDULE 14 

TO

SECURITY AGREEMENT

 

Documents

 

XII-Schedule 14-1

 

SCHEDULE 15

TO

SECURITY AGREEMENT

 

Assigned Agreements

 

XII-Schedule 15-1

 

EXHIBIT I TO

SECURITY AGREEMENT

 

[FORM OF GRANT]
OF TRADEMARK SECURITY INTEREST

WHEREAS,
[NAME OF GRANTOR], a                    
corporation (“Grantor”), owns and
uses in its business, and will in the future adopt and so use, various
intangible assets, including the Trademark Collateral (as defined below); and

 

WHEREAS,
MF Merger Corporation, a New York corporation, has entered into a Credit
Agreement dated as of May 11, 2004 (said Credit Agreement, as it may heretofore
have been and as it may hereafter be further amended, restated, supplemented or
otherwise modified from time to time, being the “Credit Agreement”) with the financial institutions named
therein (collectively, together with their respective successors and assigns
party to the Credit Agreement from time to time, the “Lenders”), and BNP Paribas, as Administrative Agent for the
Lenders (in such capacity, “Secured Party”)
pursuant to which Lenders have made certain commitments, subject to the terms
and conditions set forth in the Credit Agreement, to extend certain credit
facilities to Company; and

 

WHEREAS,
Company may from time to time enter, or may from time to time have entered,
into one or more swap agreements (collectively, the “Lender Swap Agreements”) with one or more Persons that are
Lenders or Affiliates of Lenders at the time such Lender Swap Agreements are
entered into (in such capacity, collectively, “Swap
Counterparties”); and

 

[Insert
if Grantor is a Subsidiary or Holdings:]  [WHEREAS,
Grantor has executed and delivered that certain Guaranty dated as of May 11,
2004 (said Guaranty, as it may heretofore have been and as it may hereafter be
further amended, restated, supplemented or otherwise modified from time to
time, being the “Guaranty”) in
favor of Secured Party for the benefit of Lenders and any Swap Counterparties,
pursuant to which Grantor has guarantied the prompt payment and performance
when due of all obligations of Company under the Credit Agreement and the other
Loan Documents and all obligations of Company under the Lender Swap Agreements,
including, without limitation, the obligation of Company to make payments
thereunder in the event of early termination thereof; and

 

WHEREAS,
pursuant to the terms of a Security Agreement dated as of May 11, 2004 (said
Security Agreement, as it may heretofore have been and as it may hereafter be
further amended, restated, supplemented or otherwise modified from time to
time, being the “Security Agreement”),
among Grantor, Secured Party and the other grantors named therein, Grantor has
created in favor of Secured Party a security interest in, and Secured Party has
become a secured creditor with respect to, the Trademark Collateral;

 

NOW,
THEREFORE, for good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, subject to the terms and
conditions of the Security Agreement, to evidence further the security interest
granted by Grantor to Secured Party pursuant

 

I-1

 

to the
Security Agreement, Grantor hereby grants to Secured Party a security interest
in all of Grantor’s right, title and interest in and to the following, in each
case whether now or hereafter existing or in which Grantor now has or hereafter
acquires an interest and wherever the same may be located (the “Trademark Collateral”):

 

(i)            all rights, title and
interest (including rights acquired pursuant to a license or otherwise) in and
to all trademarks, service marks, designs, logos, indicia, tradenames, trade
dress, corporate names, company names, business names, fictitious business
names, trade styles and/or other source and/or business identifiers and
applications pertaining thereto, owned by such Grantor, or hereafter adopted
and used, in its business (including, without limitation, the trademarks set
forth on Schedule A annexed hereto) (collectively, the “Trademarks”), all registrations that have been
or may hereafter be issued or applied for thereon in the United States and any
state thereof and in foreign countries (including, without limitation, the
registrations and applications set forth on Schedule A annexed hereto),
all common law and other rights (but in no event any of the obligations) in and
to the Trademarks in the United States and any state thereof and in foreign
countries, and all goodwill of such Grantor’s business symbolized by the
Trademarks and associated therewith; and

 

(ii)           all proceeds, products,
rents and profits of or from any and all of the foregoing Trademark Collateral
and, to the extent not otherwise included, all payments under insurance
(whether or not Secured Party is the loss payee thereof), or any indemnity,
warranty or guaranty, payable by reason of loss or damage to or otherwise with
respect to any of the foregoing Trademark Collateral.  For purposes of this Grant of Trademark
Security Interest, the term “proceeds”
includes whatever is receivable or received when Trademark Collateral or
proceeds are sold, licensed, exchanged, collected or otherwise disposed of,
whether such disposition is voluntary or involuntary.

 

Grantor does
hereby further acknowledge and affirm that the rights and remedies of Secured
Party with respect to the security interest in the Trademark Collateral granted
hereby are more fully set forth in the Security Agreement, the terms and
provisions of which are incorporated by reference herein as if fully set forth
herein.

 

[The remainder of this page is intentionally left blank.]

 

I-2

 

IN
WITNESS WHEREOF, Grantor has caused this Grant of
Trademark Security Interest to be duly executed and delivered by its officer
thereunto duly authorized as of the        
day of
                ,       .

 

	
   

  	
  [NAME OF GRANTOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

I-3

 

SCHEDULE A

TO

GRANT OF TRADEMARK SECURITY INTEREST

 

	
  Owner

  	
   

  	
  Trademark

  Description

  	
   

  	
  Registration/

  Appl. Number

  	
   

  	
  Registration/

  Appl. Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

I-A-1

 

EXHIBIT II TO

SECURITY AGREEMENT

 

[FORM OF]
GRANT OF PATENT SECURITY INTEREST

 

WHEREAS,
[NAME OF GRANTOR], a                      
corporation (“Grantor”), owns and
uses in its business, and will in the future adopt and so use, various
intangible assets, including the Patent Collateral (as defined below); and

 

WHEREAS,
MF Merger Corporation, a New York corporation, has entered into a Credit
Agreement dated as of May 11, 2004 (said Credit Agreement, as it may heretofore
have been and as it may hereafter be further amended, restated, supplemented or
otherwise modified from time to time, being the “Credit Agreement”) with the financial institutions named
therein (collectively, together with their respective successors and assigns
party to the Credit Agreement from time to time, the “Lenders”), and BNP Paribas, as Administrative Agent for the
Lenders (in such capacity, “Secured Party”),
pursuant to which Lenders have made certain commitments, subject to the terms
and conditions set forth in the Credit Agreement, to extend certain credit
facilities to Company; and

 

WHEREAS,
Company may from time to time enter, or may from time to time have entered,
into one or more swap agreements (collectively, the “Lender Swap Agreements”) with one or more Persons that are
Lenders or Affiliates of Lenders at the time such Lender Swap Agreements are
entered into (in such capacity, collectively, “Swap
Counterparties”); and

 

[Insert
if Grantor is a Subsidiary or Holdings:]  [WHEREAS,
Grantor has executed and delivered that certain Guaranty dated as of May 11,
2004 (said Guaranty, as it may heretofore have been and as it may hereafter be
further amended, restated, supplemented or otherwise modified from time to
time, being the “Guaranty”) in
favor of Secured Party for the benefit of Lenders and any Swap Counterparties,
pursuant to which Grantor has guarantied the prompt payment and performance
when due of all obligations of Company under the Credit Agreement and the other
Loan Documents and all obligations of Company under the Lender Swap Agreements,
including, without limitation, the obligation of Company to make payments
thereunder in the event of early termination thereof; and]

 

WHEREAS,
pursuant to the terms of a Security Agreement dated as of May 11, 2004 (said
Security Agreement, as it may heretofore have been and as it may hereafter be
further amended, restated, supplemented or otherwise modified from time to
time, being the “Security Agreement”),
among Grantor, Secured Party and the other grantors named therein, Grantor
created in favor of Secured Party a security interest in, and Secured Party has
become a secured creditor with respect to, the Patent Collateral;

 

NOW,
THEREFORE, for good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, subject to the terms and
conditions of the Security Agreement, to evidence further the security interest
granted by Grantor to Secured Party pursuant

 

II-1

 

to the
Security Agreement, Grantor hereby grants to Secured Party a security interest
in all of Grantor’s right, title and interest in and to the following, in each
case whether now or hereafter existing or in which Grantor now has or hereafter
acquires an interest and wherever the same may be located (the “Patent Collateral”):

 

(i)            all rights, title and
interest (including rights acquired pursuant to a license or otherwise) in and
to all patents and patent applications and rights and interests in patents and
patent applications under any domestic or foreign law that are presently, or in
the future may be, owned or held by such Grantor and all patents and patent
applications and rights, title and interests in patents and patent applications
under any domestic or foreign law that are presently, or in the future may be,
owned by such Grantor in whole or in part (including, without limitation, the
patents and patent applications set forth on Schedule A annexed hereto), all
rights (but not obligations) corresponding thereto to sue for past, present and
future infringements and all re-issues, divisions, continuations, renewals,
extensions and continuations-in-part thereof; and

 

(ii)           all proceeds, products,
rents and profits of or from any and all of the foregoing Patent Collateral
and, to the extent not otherwise included, all payments under insurance
(whether or not Secured Party is the loss payee thereof), or any indemnity,
warranty or guaranty, payable by reason of loss or damage to or otherwise with
respect to any of the foregoing Patent Collateral.  For purposes of this Grant of Patent Security
Interest, the term “proceeds”
includes whatever is receivable or received when Patent Collateral or proceeds
are sold, licensed, exchanged, collected or otherwise disposed of, whether such
disposition is voluntary or involuntary.

 

Grantor does
hereby further acknowledge and affirm that the rights and remedies of Secured
Party with respect to the security interest in the Patent Collateral granted
hereby are more fully set forth in the Security Agreement, the terms and
provisions of which are incorporated by reference herein as if fully set forth
herein.

 

[The remainder of this page intentionally left blank.]

 

II-2

 

IN
WITNESS WHEREOF, Grantor has caused this Grant of
Patent Security Interest to be duly executed and delivered by its officer
thereunto duly authorized as of the        
day of
                ,       .

 

	
   

  	
  [NAME OF GRANTOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

II-3

 

SCHEDULE A

TO

GRANT OF PATENT SECURITY INTEREST

 

Patents
Issued:

 

	
  Patent No.

  	
   

  	
  Issue Date

  	
   

  	
  Title

  	
   

  	
  Inventor(s)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Patents
Pending:

 

	
  Applicant’s

  Name

  	
   

  	
  Date

  Filed

  	
   

  	
  Application

  Number

  	
   

  	
  Invention

  	
   

  	
  Inventor(s)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

II-A-1

 

EXHIBIT III TO

SECURITY AGREEMENT

 

[FORM OF]
GRANT OF COPYRIGHT SECURITY INTEREST

 

WHEREAS,
[NAME OF GRANTOR], a                  
corporation (“Grantor”), owns and
uses in its business, and will in the future adopt and so use, various
intangible assets, including the Copyright Collateral (as defined below); and

 

WHEREAS,
MF Merger Corporation a New York corporation, has entered into a Credit
Agreement dated as of May 11, 2004 (said Credit Agreement, as it may heretofore
have been and as it may hereafter be further amended, restated, supplemented or
otherwise modified from time to time, being the “Credit Agreement”) with the financial institutions named
therein (collectively, together with their respective successors and assigns
party to the Credit Agreement from time to time, the “Lenders”), and BNP Paribas, as Administrative Agent for the
Lenders (in such capacity, “Secured Party”),
pursuant to which Lenders have made certain commitments, subject to the terms
and conditions set forth in the Credit Agreement, to extend certain credit
facilities to Company; and

 

WHEREAS,
Company may from time to time enter, or may from time to time have entered,
into one or more swap agreements (collectively, the “Lender Swap Agreements”) with one or more Persons that are
Lenders or Affiliates of Lenders at the time such Lender Swap Agreements are
entered into (in such capacity, collectively, “Swap
Counterparties”); and

 

[Insert
if Grantor is a Subsidiary or Holdings:]  [WHEREAS,
Grantor has executed and delivered that certain Guaranty dated as of May 11,
2004 (said Guaranty, as it may heretofore have been and as it may hereafter be
further amended, restated, supplemented or otherwise modified from time to
time, being the “Guaranty”) in
favor of Secured Party for the benefit of Lenders and any Swap Counterparties,
pursuant to which Grantor has guarantied the prompt payment and performance when
due of all obligations of Company under the Credit Agreement and the other Loan
Documents and all obligations of Company under the Lender Swap Agreements,
including, without limitation, the obligation of Company to make payments
thereunder in the event of early termination thereof; and]

 

WHEREAS,
pursuant to the terms of a Security Agreement dated as of May 11, 2004 (said
Security Agreement, as it may heretofore have been and as it may hereafter be
further amended, restated, supplemented or otherwise modified from time to
time, being the “Security Agreement”),
among Grantor, Secured Party and the other grantors named therein, Grantor
created in favor of Secured Party a security interest in, and Secured Party has
become a secured creditor with respect to, the Copyright Collateral;

 

NOW,
THEREFORE, for good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, subject to the terms and
conditions of the Security Agreement, to evidence further the security interest
granted by Grantor to Secured Party pursuant to the Security Agreement, Grantor
hereby grants to Secured Party a security interest in all of

 

III-1

 

Grantor’s
right, title and interest in and to the following, in each case whether now or
hereafter existing or in which Grantor now has or hereafter acquires an
interest and wherever the same may be located (the “Copyright Collateral”):

 

(i)            all rights, title and
interest (including rights acquired pursuant to a license or otherwise) under
copyright in various published and unpublished works of authorship including,
without limitation, computer programs, computer data bases, other computer
software layouts, trade dress, drawings, designs, writings, and formulas
(including, without limitation, the works set forth on Schedule A
annexed hereto, as the same may be amended pursuant hereto from time to time)
(collectively, the “Copyrights”),
all copyright registrations issued to Grantor and applications for copyright
registration that have been or may hereafter be issued or applied for thereon
in the United States and any state thereof and in foreign countries (including,
without limitation, the registrations set forth on Schedule A annexed
hereto, as the same may be amended pursuant hereto from time to time)
(collectively, the “Copyright Registrations”),
all common law and other rights in and to the Copyrights in the United States
and any state thereof and in foreign countries including all copyright licenses
(but with respect to such copyright licenses, only to the extent permitted by
such licensing arrangements) (the “Copyright
Rights”), including, without limitation, each of the Copyrights,
rights, titles and interests in and to the Copyrights, all derivative works and
other works protectable by copyright, which are presently, or in the future may
be, owned, created (as a work for hire for the benefit of Grantor), authored
(as a work for hire for the benefit of Grantor), or acquired by Grantor, in
whole or in part, and all Copyright Rights with respect thereto and all
Copyright Registrations therefor, heretofore or hereafter granted or applied
for, and all renewals and extensions thereof, throughout the world, including
all proceeds thereof (such as, by way of example and not by limitation, license
royalties and proceeds of infringement suits), the right (but not the
obligation) to renew and extend such Copyright Registrations and Copyright
Rights and to register works protectable by copyright and the right (but not
the obligation) to sue in the name of such Grantor or in the name of Secured
Party or Lenders for past, present and future infringements of the Copyrights
and Copyright Rights; and

 

(ii)           all proceeds, products,
rents and profits of or from any and all of the foregoing Copyright Collateral
and, to the extent not otherwise included, all payments under insurance
(whether or not Secured Party is the loss payee thereof), or any indemnity,
warranty or guaranty, payable by reason of loss or damage to or otherwise with
respect to any of the foregoing Copyright Collateral.  For purposes of this Grant of Copyright
Security Interest, the term “proceeds”
includes whatever is receivable or received when Copyright Collateral or
proceeds are sold, licensed, exchanged, collected or otherwise disposed of,
whether such disposition is voluntary or involuntary.

 

Grantor does
hereby further acknowledge and affirm that the rights and remedies of Secured
Party with respect to the security interest in the Copyright Collateral granted
hereby are more fully set forth in the Security Agreement, the terms and
provisions of which are incorporated by reference herein as if fully set forth
herein.

 

III-2

 

IN
WITNESS WHEREOF, Grantor has caused this Grant of Copyright
Security Interest to be duly executed and delivered by its officer thereunto
duly authorized as of the          -day
of                    ,
        .

 

	
   

  	
  [NAME OF GRANTOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

III-3

 

SCHEDULE A

TO

GRANT OF COPYRIGHT SECURITY INTEREST

 

U.S.
Copyright Registrations:

 

	
  Title

  	
   

  	
  Registration No.

  	
   

  	
  Date of Issue

  	
   

  	
  Registered Owner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Foreign
Copyright Registrations:

 

	
  Country

  	
   

  	
  Title

  	
   

  	
  Registration No.

  	
   

  	
  Date of Issue

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pending
U.S. Copyright Registration Applications:

 

	
  Title

  	
   

  	
  Appl. No.

  	
   

  	
  Date of Application

  	
   

  	
  Copyright Claimant

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pending
Foreign Copyright Registration Applications:

 

	
  Country

  	
   

  	
  Title

  	
   

  	
  Appl. No.

  	
   

  	
  Date of Application

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

III-A-1

 

EXHIBIT IV TO

SECURITY AGREEMENT

 

[FORM OF] PLEDGE
SUPPLEMENT

 

This Pledge
Supplement, dated as of                              ,
is delivered pursuant to the Security Agreement, dated as of May 11, 2004
between                                       ,
a                    
(“Grantor”), the other Grantors
named therein, and BNP Paribas, as Secured Party (said Security Agreement, as
it may heretofore have been and as it may hereafter be further amended,
restated, supplemented or otherwise modified from time to time, being the “Security Agreement”).  Capitalized terms used herein not otherwise
defined herein shall have the meanings ascribed thereto in the Security Agreement.

 

Grantor hereby
agrees that the [Pledged Equity]  [Pledged
Debt] set forth on Schedule A
annexed hereto shall be deemed to be part of the [Pledged Equity]  [Pledged Debt] and shall become part of the Securities Collateral and shall
secure all Secured Obligations.

 

IN
WITNESS WHEREOF, Grantor has caused this Pledge
Supplement to be duly executed and delivered by its duly authorized officer as
of                       .

 

	
   

  	
  [GRANTOR]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

IV-1

 

SCHEDULE A

TO

PLEDGE SUPPLEMENT

 

IV-A-1

 

EXHIBIT V TO

SECURITY AGREEMENT

 

[FORM OF] IP
SUPPLEMENT

 

This IP
SUPPLEMENT, dated as of                  ,
is delivered pursuant to and supplements (i) the Security Agreement, dated
as of May 11, 2004 (said Security Agreement, as it may heretofore have been and
as it may hereafter be further amended, restated, supplemented or otherwise
modified from time to time, being the “Security
Agreement”), among MF Merger Corporation, [Insert Name of Grantor]
(“Grantor”), the other grantors
named therein, and BNP Paribas, as Secured Party, and (ii) the [Grant of Trademark Security Interest]  [Grant
of Patent Security Interest]  [Grant of Copyright Security Interest] dated as of                          ,
            (the “Grant”) executed by Grantor.  Capitalized terms used herein not otherwise
defined herein shall have the meanings ascribed thereto in the Grant.

 

Grantor grants
to Secured Party a security interest in all of Grantor’s right, title and
interest in and to the [Trademark
Collateral]  [Patent Collateral]  [Copyright
Collateral] set forth on Schedule
A annexed hereto.  All such [Trademark Collateral]  [Patent
Collateral]  [Copyright Collateral] shall be deemed to be part of the [Trademark Collateral]  [Patent
Collateral]  [Copyright Collateral] and shall be hereafter subject to each of
the terms and conditions of the Security Agreement and the Grant.

 

IN
WITNESS WHEREOF, Grantor has caused this IP Supplement
to be duly executed and delivered by its duly authorized officer as of                       .

 

	
   

  	
  [NAME OF GRANTOR] 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

V-1

 

EXHIBIT VI TO

SECURITY AGREEMENT

 

[FORM OF]
COUNTERPART

 

COUNTERPART
(this “Counterpart”), dated as of               ,
is delivered pursuant to Section 21 of the Security Agreement referred to
below.  The undersigned hereby agrees
that this Counterpart may be attached to the Security Agreement, dated as of May
11, 2004 (said Security Agreement, as it may heretofore have been and as it may
hereafter be further amended, restated, supplemented or otherwise modified from
time to time being the “Security Agreement”;
capitalized terms used herein not otherwise defined herein shall have the
meanings ascribed therein), among MF Merger Corporation, the other Grantors
named therein, and BNP Paribas, as Secured Party.  The undersigned by executing and delivering
this Counterpart hereby becomes a Grantor under the Security Agreement in
accordance with Section 21 thereof and agrees to be bound by all of the terms
thereof.  Without limiting the generality
of the foregoing, the undersigned hereby:

 

(i)            authorizes the Secured
Party to add the information set forth on the Schedules to this Agreement to
the correlative Schedules attached to the Security Agreement;(1)

 

(ii)           agrees that all
Collateral of the undersigned, including the items of property described on the
Schedules hereto, shall become part of the Collateral and shall secure all Secured
Obligations; and

 

(iii)          makes the
representations and warranties set forth in the Security Agreement, as amended
hereby, to the extent relating to the undersigned.

 

	
   

  	
  [NAME OF ADDITIONAL
  GRANTOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

(1)           The Schedules to the Counterpart
should include copies of all Schedules that identify collateral to be granted
by the Additional Grantor.

 

VI-1

 

EXHIBIT XIII

 

[FORM OF] COLLATERAL ACCESS AGREEMENT

 

	
  RECORDING REQUESTED BY:

  O’Melveny & Myers LLP

   

  AND WHEN RECORDED MAIL TO:

   

  O’Melveny & Myers LLP

  Embarcadero Center West

  275 Battery Street, 26th Floor

  San Francisco, California 94111

  Attn: 
  Jill Matichak, Esq.

   

  Re: 
  [Name of Company]

  	
   

  	
   

  
	
   

  	
   

  	
  Space above this line for
  recorder’s use only

  

 

REAL
PROPERTY HOLDER’S WAIVER AND CONSENT AGREEMENT

 

This REAL PROPERTY HOLDER’S WAIVER AND CONSENT AGREEMENT
(this “Agreement”) is dated as of
                  ,
20     and entered into by
                                             ,
a                                              
(“Real Property Holder”), to and
for the benefit of BNP PARIBAS as
agent for and representative of (in such capacity, “Administrative Agent”) the financial institutions (“Lenders”) from time to time party to the
Credit Agreement (as hereinafter defined).

 

R  E  C  I  T  A
L  S

 

A.            [Company Name], a [Company’s State
Organization] (“Company”), has
possession of and occupies all or a portion of the property described on Exhibit A
annexed hereto (the “Premises”).

 

B.            Company’s interest in the Premises
[arises under the lease agreement (the “Lease”)][is
subject to the [mortgage][deed of trust] (the “Mortgage”)] more particularly described on Exhibit B
annexed hereto, pursuant to which Real Property Holder has rights, upon the
terms and conditions set forth therein, to take possession of, and otherwise
assert control over, the Premises.

 

C.            Agent and Lenders have entered into
that certain Credit Agreement dated as of May 11, 2004 (said Credit
Agreement, as amended, supplemented or otherwise modified from time to time,
being the “Credit Agreement”) with
[Company] [MF Merger Corporation, a New York corporation of which Company is a
subsidiary (“Borrower”)], and
Company has executed 

 

XIII-2

[a guaranty,]
a security agreement and other collateral documents in relation to the Credit
Agreement.

 

D.            [Company’s guaranty of] the extensions
of credit made by Lenders to [Company] [Borrower] under the Credit Agreement
will be secured, in part, by all raw materials, work-in-process and finished
goods inventory of Company (including all inventory of Company now or hereafter
located on the Premises (the “Inventory”))
and all equipment, machinery and other goods used in Company’s business
(including all equipment of Company now or hereafter located on the Premises
(the “Equipment” and, together
with the Inventory, the “Collateral”)).

 

E.             Administrative Agent has requested
that Real Property Holder execute this Agreement as a condition to the
extension of credit to [Company] [Borrower] under the Credit Agreement.

 

NOW,
THEREFORE, in consideration of the premises and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Real Property Holder hereby represents and warrants to,
and covenants and agrees with, Administrative Agent as follows:

 

1.             Real
Property Holder hereby (a) waives and releases unto Administrative Agent
and its successors and assigns any and all rights granted by or under any
present or future laws to levy or distraint for rent or any other charges which
may be due to Real Property Holder against the Collateral, and any and all
other claims, liens and demands of every kind which it now has or may hereafter
have against the Collateral, and (b) agrees that any rights it may have in
or to the Collateral, no matter how arising (to the extent not effectively
waived pursuant to clause (a) of this paragraph 1), shall be second and
subordinate to the rights of Administrative Agent in respect thereof.  Real Property Holder acknowledges that the
Collateral is and will remain personal property and not fixtures even though it
may be affixed to or placed on the Premises.

 

2.             Real
Property Holder certifies that (a) Real Property Holder is the [landlord
under the Lease][beneficiary under the Mortgage], (b) the
[Lease][Mortgage] is in full force and effect and has not been amended,
modified, or supplemented except as set forth on Exhibit B annexed
hereto, (c) there is no defense, offset, claim or counterclaim by or in
favor of Real Property Holder against Company under the [Lease][Mortgage] or
against the obligations of Real Property Holder under the [Lease][Mortgage], (d) no
notice of default has been given under or in connection with the
[Lease][Mortgage] which has not been cured, and Real Property Holder has no
knowledge of the occurrence of any other default under or in connection with
the [Lease][Mortgage], and (e) except as disclosed to Administrative
Agent, no portion of the Premises is encumbered in any way by any deed of
trust or mortgage lien or ground or superior lease.

 

3.             Real
Property Holder consents to the installation or placement of the Collateral on
the Premises, and Real Property Holder grants to Administrative Agent a license
to enter upon and into the Premises to do any or all of the following with
respect to the Collateral:  assemble,
have appraised, display, remove, maintain, prepare for sale or lease, repair,
transfer, or sell (at public or private sale). 
In entering upon or into the Premises, Administrative Agent 

 

XIII-3

 

hereby agrees to indemnify, defend and hold
Real Property Holder harmless from and against any and all claims, judgments,
liabilities, costs and expenses incurred by Real Property Holder caused solely
by Administrative Agent’s entering upon or into the Premises and taking any of
the foregoing actions with respect to the Collateral.  Such costs shall include any damage to the
Premises made by Administrative Agent in severing and/or removing the
Collateral therefrom.

 

4.             Real
Property Holder agrees that it will not prevent Administrative Agent or its
designee from entering upon the Premises at all reasonable times to inspect or
remove the Collateral.  In the event that
Real Property Holder has the right to, and desires to, obtain possession of the
Premises [(either through expiration of the Lease or termination thereof due to
the default of Company thereunder)] [(through the exercise of its rights under
the Mortgage upon a default by Company thereunder)], Real Property Holder will
deliver notice (the “Real Property Holder’s
Notice”) to Administrative Agent to that effect.  Within the 45 day period after Administrative
Agent receives the Real Property Holder’s Notice, Administrative Agent shall
have the right, but not the obligation, to cause the Collateral to be removed
from the Premises.  During such 45 day
period, Real Property Holder will not remove the Collateral from the Premises
nor interfere with Administrative Agent’s actions in removing the Collateral
from the Premises or Administrative Agent’s actions in otherwise enforcing its
security interest in the Collateral. 
Notwithstanding anything to the contrary in this paragraph,
Administrative Agent shall at no time have any obligation to remove the
Collateral from the Premises.

 

5.             Real
Property Holder shall send to Administrative Agent a copy of any notice of
default under the [Lease][Mortgage] sent by Real Property Holder to
Company.  In addition, Real Property
Holder shall send to Administrative Agent a copy of any notice received by Real
Property Holder of a breach or default under any other lease, mortgage, deed of
trust, security agreement or other instrument to which Real Property Holder is
a party which may affect Company’s rights in, or possession of, the Premises.

 

6.             All
notices to Administrative Agent under this Agreement shall be in writing and
sent to Administrative Agent at its address set forth on the signature page hereof
by telefacsimile, by United States mail, or by overnight delivery service.

 

7.             The
provisions of this Agreement shall continue in effect until Real Property
Holder shall have received Administrative Agent’s written certification that
all amounts advanced under the Credit Agreement have been paid in full.

 

8.             This
Agreement and the rights and obligations of the parties hereunder shall be
governed by, and shall be construed and enforced in accordance with, the
internal laws of the State of                       ,
without regard to conflicts of laws principles.

 

[Remainder of page intentionally left
blank.]

 

XIII-4

 

IN
WITNESS WHEREOF, the undersigned have caused this
Agreement to be duly executed and delivered as of the day and year first set
forth above.

 

	
   

  	
  [NAME OF REAL PROPERTY HOLDER]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

XIII-S-1

 

By its acceptance hereof, as of the day and
year first set forth above, Administrative Agent agrees to be bound by the provisions
hereof.

 

	
   

  	
  BNP PARIBAS,

  
	
   

  	
  as Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Facsimile Number:

  	
   

  	
   

  
					

 

XIII-S-2

 

EXHIBIT A

LEGAL
DESCRIPTION OF PREMISES

 

 

EXHIBIT B

DESCRIPTION OF [LEASE]
[MORTGAGE]

 

 

EXHIBIT XIV

 

[FORM OF] BORROWING BASE CERTIFICATE

 

                  ,
20   

 

Reference is
made to that certain Credit Agreement dated as of May 11, 2004, as
amended, supplemented or otherwise modified to the date hereof (said Credit
Agreement, as so amended, supplemented or otherwise modified, being the “Credit Agreement”, the terms defined
therein and not otherwise defined herein being used herein as therein defined),
by and among MF Merger Corporation, a New York corporation (“Company”), MF Acquisition Corporation, a
Delaware corporation, the financial institutions listed therein as Lenders (“Lenders”), and BNP Paribas, as
Administrative Agent (“Administrative Agent”)
for Lenders.

 

Pursuant to
subsection 6.1(xvii) of the Credit Agreement, the undersigned                                        
of Company hereby certifies that attached hereto as Annex A is a true
and accurate calculation of the Borrowing Base as of                       ,
20    determined in accordance with the requirements of the
Credit Agreement.

 

[Remainder of page intentionally left blank.]

 

XIV-1

 

IN
WITNESS WHEREOF, the undersigned has caused this
certificate to be duly executed as of                        ,
20   .

 

	
   

  	
  MF MERGER CORPORATION

  	
   

  	 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

XIV-2

 

ANNEX
A

 

TO
BORROWING BASE CERTIFICATE

 

                  ,
20   

 

	
  I.

  	
  ACCOUNTS
  OF COMPANY AND SUBSIDIARY GUARANTORS 

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.

  	
  Total Accounts(1)

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.

  	
  Less: Accounts arising out of a sale made
  by any Loan Party to an Affiliate, an agent of any Loan Party or a
  natural person

  	
   

  	
  $

  	
  (

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.

  	
  Less: Accounts unpaid more than the earlier
  of (i) 90 days after the date of the original invoice or (ii) 60
  days after the original due date

  	
   

  	
  $

  	
  (

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.

  	
  Less: Accounts where 25% or more of all
  Accounts from the account debtor for such Account are ineligible under I.3
  above, or 25% or more of all Accounts from the account debtor for such
  Account and its Affiliates are ineligible under I.3 above

  	
   

  	
  $

  	
  (

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.

  	
  Less: Accounts from any account debtors
  which, when aggregated with all other Accounts of such account debtor and its
  Affiliates, exceed 25%(2) in face value of all Accounts of any Loan Party
  then outstanding, but only to the extent of such excess (unless such excess
  is supported by an irrevocable letter of credit satisfactory to
  Administrative Agent (as to form, substance and issuer) and assigned to and
  directly drawable by Administrative Agent)

  	
   

  	
  $

  	
  (

  	
  )

  

 

(1) The
face amount of all Accounts reduced by the amount of all sales, excise or
similar taxes and all returns, discounts, deductions, claims, credits, charges,
or other allowances.  

(2)
40% with respect to Accounts for which Kohl’s Corporation is the account debtor
for any period during which, and continuing until 180 days after which, Kohl’s
Corporation has a corporate credit rating of at least B1 from Moody’s or B+
from S&P.

 

XIV-3

 

	
   

  	
  6.

  	
  Less: Accounts where the account debtor (or
  any of its Affiliates) are creditors of any Loan Party, has or has asserted a
  right of setoff against any Loan Party, or has disputed its liability or
  otherwise has made any claim with respect to any Account which has not been
  resolved, in each case to the extent of the amount owed by such Loan Party to
  such account debtor (or such Affiliate), the amount of such actual or
  asserted right of setoff, or the amount of such dispute or claim, as the case
  may be

  	
   

  	
  $

  	
  (

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.

  	
  Less: Accounts from any account debtor if
  such account debtor (or any of its Affiliates) is (or its assets or its
  Affiliate’s assets are) the subject of an Insolvency Event

  	
   

  	
  $

  	
  (

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.

  	
  Less: Accounts not payable in Dollars or
  Canadian Dollars or Accounts from an account debtor located outside the
  United States, its territories and possessions or Canada (unless supported by
  an irrevocable letter of credit satisfactory to Administrative Agent (as to
  form, substance and issuer) and assigned to and directly drawable by
  Administrative Agent)

  	
   

  	
  $

  	
  (

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.

  	
  Less: Accounts with respect to sales on a
  bill-and-hold, guarantied sale, sale-and-return, sale on approval, progress
  billing or consignment basis or made pursuant to any other written agreement
  providing for repurchase or return

  	
   

  	
  $

  	
  (

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.

  	
  Less: Accounts from the United States of
  America or any department, agency or instrumentality thereof (unless the
  relevant Loan Party has duly assigned its rights to payment of such Account
  to Administrative Agent pursuant to the Assignment of Claims Act of 1940, as
  amended (31 U.S.C. §§ 3727 et seq.))

  	
   

  	
  $

  	
  (

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  11.

  	
  Less: Accounts where the risk of loss with
  respect to the goods giving rise to such Accounts has not passed to the buyer
  or such Accounts otherwise do not represent a final sale

  	
   

  	
  $

  	
  (

  	
  )

  

 

XIV-4

 

	
   

  	
  12.

  	
  Less: Accounts with respect to which the
  filing of a notice of business activities report or similar report is
  required in order to permit the relevant Loan Party to seek judicial
  enforcement of payment of such Accounts but such filing has not been made and
  accepted (unless such failure to file and inability to seek judicial
  enforcement may be remedied without any material delay or material cost)

  	
   

  	
  $

  	
  (

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  13.

  	
  Less: Accounts not subject to a valid and
  perfected First Priority Lien in favor of Administrative Agent or not
  otherwise in conformance with the representations and warranties contained in
  the Loan Documents

  	
   

  	
  $

  	
  (

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  14.

  	
  Eligible Receivables (I.1 less I.2
  through I.13)

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  15.

  	
  Percentage of Eligible Receivables
  specified in I.14 above to be included in Borrowing Base

  	
   

  	
  85

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.

  	
  Eligible Receivables to be included in
  Borrowing Base (I.14 times I.15)

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II.

  	
  INVENTORIES
  OF COMPANY SUBSIDIARY GUARANTORS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.

  	
  Total
  Inventory(3)

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.

  	
  Less: Inventory not owned solely by any
  Loan Party or with respect to which such Loan Party does not have good, valid
  and marketable title thereto

  	
   

  	
  $

  	
  (

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.

  	
  Less: Inventory not located in the United
  States

  	
   

  	
  $

  	
  (

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.

  	
  Less: Inventory not located on or in
  transit to property owned or leased by a Loan Party or in a contract
  warehouse and segregated or otherwise separately identifiable from goods of
  others, if any, stored on the premises

  	
   

  	
  $

  	
  (

  	
  )

  

 

(3) Inventory shall be valued at the lower of
cost or market on a FIFO basis consistent with the relevant Loan Party’s
current and historical accounting practice.

 

XIV-5

 

	
   

  	
  5.

  	
  Less: Inventory not subject to a valid and
  perfected First Priority Lien in favor of Administrative Agent (except for
  Liens for unpaid rent and/or normal and customary warehousing charges)

  	
   

  	
  $

  	
  (

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.

  	
  Less: Inventory that consists of
  work-in-process, packaging or shipping materials or otherwise does not
  consist of finished goods or raw materials, or that consists of non-standard
  customized goods returned or rejected by such Loan Party’s customers

  	
   

  	
  $

  	
  (

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.

  	
  Less: Inventory that is obsolete, damaged,
  defective or unmerchantable or does not otherwise conform to the
  representations and warranties contained in the Loan Documents

  	
   

  	
  $

  	
  (

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.

  	
  Less: Inventory that is not currently
  either usable or salable, at prices approximating at least cost, in the
  normal course of Company’s business

  	
   

  	
  $

  	
  (

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.

  	
  Less: Inventory that contains or bears any
  Intellectual Property licensed to Company or any Subsidiary Guarantor by any Person
  (and regarding which Company has not delivered to Administrative Agent any
  requested consent or sublicense agreement from such licensor); except 

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (A) such Inventory as Administrative
  Agent is satisfied that it may sell or otherwise dispose of in accordance
  with the terms of the Security Agreement without infringing the rights of the
  licensor of such Intellectual Property or violating any contract with such
  licensor (and without payment of any royalties other than any royalties due
  with respect to the sale or disposition of such Inventory pursuant to the
  existing license agreement)); and 

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (B) such Inventory is otherwise
  Eligible Inventory and Company is able to re-label and sell it in the
  ordinary course of business

  	
   

  	
  $

  	
  (

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.

  	
  Less: The reasonably estimated re-labeling
  costs of Inventory described in II.9(B)

  	
   

  	
  $

  	
  (

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  11.

  	
  Less: Inventory that consists of
  bill-and-hold goods, or it is Inventory placed on consignment

  	
   

  	
  $

  	
  (

  	
  )

  

 

XIV-6

 

	
   

  	
  12.

  	
  From and after the date 90 days after the
  Closing Date, less: Collateral access and rent reserves for premises without
  a Collateral Access Agreement (in an aggregate amount equal to one months’
  rent or one months’ average processing charges, as applicable, for the
  property or warehouse space)

  	
   

  	
  $

  	
  (

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  13.

  	
  Eligible Inventory (II.1 less II.2
  through II.12)

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  14.

  	
  Percentage of Eligible Inventory to be
  included in the Borrowing Base

  	
   

  	
  50

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  15.

  	
  Eligible Inventory to be included in the
  Borrowing Base (II.13 times II.14)

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  III.

  	
  BORROWING
  BASE 

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.

  	
  Eligible Receivables to be included in
  Borrowing Base (I.16)

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.

  	
  Eligible Inventory to be included in the
  Borrowing Base (II.15)

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.

  	
  Borrowing Base (III.1 plus III.2)

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IV.

  	
  TOTAL
  UTILIZATION OF REVOLVING LOAN COMMITMENTS 

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.

  	
  Aggregate principal amount of outstanding
  Revolving Loans

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.

  	
  Aggregate principal amount of all
  outstanding Swing Line Loans

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.

  	
  Letter of Credit Usage

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.

  	
  Total Utilization of Revolving Loan
  Commitments (IV.1 plus IV.2 plus IV.3)

  	
   

  	
  $

  	
   

  

 

XIV-7

 

	
  V.

  	
  AMOUNT OF REVOLVING LOAN COMMITMENTS
  AVAILABLE TO COMPANY 

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.

  	
  Borrowing Base less Total Utilization of
  Revolving Loan Commitments (III.3 minus IV.4)

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.

  	
  Revolving Loan Commitments

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.

  	
  Revolving Loan Commitments less Total
  Utilization of Revolving Loan Commitments

  (V.2 minus IV.4)

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.

  	
  Amount of Revolving Loan Commitments
  available to Company (lesser of V.1 and V.3)

  	
   

  	
  $

  	
   

  

 

XIV-8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]