Document:

Exhibit 4.2

SUPPLEMENTAL
INDENTURE

MTR GAMING GROUP,
INC.,

as Issuer

and

THE GUARANTORS

NAMED HEREIN

9% SENIOR
SUBORDINATED NOTES DUE 2012

Supplemental
Indenture

Dated as of June 15, 2007

Supplementing the
Indenture

Dated as of May 25, 2006

(as supplemented as of June 1, 2007)

WELLS FARGO BANK,
N.A.,

as Trustee

SUPPLEMENTAL INDENTURE (this
“Supplemental Indenture”), dated
as of June 15, 2007 (the “Effective Date”),
among MTR Gaming Group, Inc., a Delaware corporation (the “Issuer”), the guarantors executing this
Supplemental Indenture (the “Guarantors”)
and Wells Fargo Bank, N.A., as trustee (the “Trustee”),
under the Indenture dated as of May 25, 2006, as supplemented on
June 1, 2007 (the “Indenture”).
Capitalized terms used herein and not otherwise defined shall have the
respective meanings ascribed to them in the Indenture.

W I T N E S S E T
H:

WHEREAS, MTR, the
Trustee and the Guarantors have heretofore executed and delivered the Indenture
providing for the issuance by the Issuer of 9% Senior Subordinated Notes due
2012 (the “Notes”);

WHEREAS, MTR has
solicited consents from the Holders of the Notes to certain proposed amendments
to the Indenture, in accordance with the terms and conditions of a Consent
Solicitation Statement, dated June 4, 2007 (the “Solicitation Statement”);

WHEREAS, Section
9.2 of the Indenture provides that, with the consent of the Holders of a
majority in aggregate principal amount of the Notes then outstanding, voting as
a single class, the Issuer, the Guarantors and the Trustee may amend or
supplement the Indenture and the Notes in accordance with Section 9.2 of the
Indenture;

WHEREAS, the
Holders of a majority in aggregate principal amount of the outstanding Notes
have duly consented to the proposed amendments set forth in this Supplemental
Indenture in accordance with Section 9.2 of the Indenture;

WHEREAS, the Issuer
has heretofore delivered or is delivering contemporaneously herewith to the
Trustee (i) copies of resolutions of the Boards of Directors of the Issuer and
the Guarantors authorizing the execution of this Supplemental Indenture, (ii)
evidence of the written consent of the Holders set forth in the immediately
preceding paragraph, and (iii) the Officers’ Certificate and the Opinion of
Counsel described in Section 12.4 of the Indenture; and

WHEREAS, all other
acts and proceedings required by law and the Indenture necessary to authorize
the execution and delivery of this Supplemental Indenture and to make this
Supplemental Indenture a valid and binding agreement for the purposes expressed
herein, in accordance with its terms, have been complied with or have been duly
done or performed.

NOW, THEREFORE, in
consideration of the foregoing and notwithstanding any provision of the
Indenture which, absent this Supplemental Indenture, might operate to limit
such action, the parties hereto, intending to be legally bound hereby, agree as
follows:

ARTICLE ONE

AMENDMENTS

SECTION 1.01. Amendment of Definition of “Permitted
Indebtedness.” Paragraph (g) is hereby added to
the definition of “Permitted Indebtedness” contained in Section 1.1 of the
Indenture entitled “Definitions,” to read as follows:

(g)           Indebtedness
outstanding on the Issue Date represented by the Senior Notes and any
Guarantees thereof, including any Refinancing Indebtedness with respect
thereto.

SECTION 1.02. Amendment of Definition of “Permitted
Liens.”
Paragraph (m) of the definition of “Permitted Liens” contained in Section 1.1
of the Indenture entitled “Definitions,” is hereby amended to read as follows:

(m)          Liens
securing Indebtedness incurred under the Credit Agreement and any Refinancing
Indebtedness with respect to the Senior Notes and Guarantees thereof in
accordance with Section 4.11.

SECTION 1.03. Amendment of Definition of “Refinancing
Indebtedness.” Paragraph D of the definition
of “Refinancing Indebtedness” contained in Section 1.1 of the Indenture
entitled “Definitions,” is hereby amended to read as follows:

(D) such Refinancing Indebtedness shall be secured (if
secured) in a manner no more adverse to the Holders of the Notes than the terms
of the Liens (if any) securing such refinanced Indebtedness, including, without
limitation, the amount of Indebtedness secured shall not be increased;
provided, however, that this clause (D) shall not apply to any Refinancing of
the Senior Notes.

SECTION 1.04. Amendment of Section 1.1
The following definitions of “Additional Payment”, “Applicable Quarter”, “Filing
Date”, “Indebtedness Ratio” and “Special Indebtedness” are hereby added to
Section 1.1 of the Indenture entitled “Definitions” to read as follows:

“Additional Payment” shall have the meaning specified
in Section 4.20.

“Applicable Quarter” shall have the meaning specified
in Section 4.20.

“Filing Date” shall have the meaning specified in
Section 4.20.

“Indebtedness Ratio” shall have the meaning specified
in Section 4.20.

“Special Indebtedness” shall have the meaning
specified in Section 4.20.

SECTION 1.05 Amendment of Section 4.11.
The third paragraph of Section 4.11 of the Indenture entitled “Limitation on
Incurrence of Additional Indebtedness” is hereby amended to read in its
entirety as follows:

In addition, the
foregoing limitations of the first paragraph of this Section 4.11 will not
prohibit:

(a)           if
no Event of Default shall have occurred and be continuing, the Company’s
incurrence or the incurrence by any Guarantor of Indebtedness in an aggregate
amount incurred and outstanding at any time pursuant to this paragraph (a)
(plus any Refinancing Indebtedness incurred to retire, defease, refinance,
replace or refund such Indebtedness) of up to $10,000,000; and

(b)           the
Company’s incurrence or the incurrence by any Guarantor of Indebtedness
pursuant to the Credit Agreement in an aggregate amount incurred and
outstanding at any time pursuant to this paragraph (b) (plus any Refinancing
Indebtedness incurred to retire, defease, replace or refund such Indebtedness)
of up to $135,000,000, minus the amount of any such Indebtedness
(1) retired with the Net Cash Proceeds from any Asset Sale or Event of
Loss applied to permanently reduce the outstanding amounts or the commitments
with respect to such Indebtedness pursuant to Section 4.13 or (2) assumed by a
transferee in an Asset Sale.

Section 1.06. Addition of new Section 4.20.
The following Section 4.20 is hereby added to Article IV of the Indenture
entitled “Covenants” to read in its entirety as follows:

Section 4.20. Payment of Certain Additional Payments. Commencing
with the Company’s fiscal quarter ended June 30, 2008, and continuing
until and including such quarter in which the Notes shall no longer be
outstanding (each an “Applicable Quarter”), in the event the ratio of the
Company’s Special Indebtedness (as defined below) to the Company’s Consolidated
EBITDA for the four full fiscal quarters ended immediately prior to the
applicable determination date exceeds 4.0 to 1.0 (the “Indebtedness Ratio”), as
determined on the date on which the Company’s consolidated financial statements
with respect to each such fiscal quarter are required to be delivered to the
Trustee or, if sooner, filed with the SEC (any such date, a “Filing Date”),
then for each such quarter the Company will, as promptly as practicable, but in
any event within 10 days following such Filing Date, pay a fee of $5.00 in cash
for each $1,000 in principal amount of then Outstanding Notes (each such
payment, an “Additional Payment”).  Any
such Additional Payment shall be payable only to holders of Notes shown on the
records of the registrar for the Notes as registered holders of Notes at the
close of business on the date immediately following the Filing Date with
respect to each such quarter.  As
promptly as practicable after the end of each Applicable Quarter, the Company’s
Chief Financial Officer will execute and deliver a certificate to the Trustee
stating and certifying the ratio of the Company’s Special Indebtedness to the
Company’s Consolidated EBITDA with respect to each such Applicable Quarter.

Solely for purposes of the foregoing provisions with
respect to the Additional Payments, the term “Special Indebtedness” shall have
the same meaning as Indebtedness, except that amounts borrowed by North Metro
Harness Initiative, LLC  of up to $41.7
million shall be excluded from such definition of Indebtedness, provided that
such

 I-2
 

loan does not constitute Recourse Indebtedness with
respect to the Company and the Guarantors. For purposes of the foregoing
provisions, clauses (a) through (d) of the definition of “Consolidated Coverage
Ratio” as set forth herein, shall apply.

ARTICLE TWO

MISCELLANEOUS

SECTION 2.01. Reference to and Effect on the
Indenture. On and after the Effective Date,
each reference in the Indenture to “this Indenture,” “hereunder,” “hereof,” or “herein”
(and all references to the Indenture in any other agreements, documents or
instruments) shall mean and be a reference to the Indenture as supplemented by
this Supplemental Indenture, unless the context otherwise requires. The
Indenture, as supplemented by this Supplemental Indenture, shall be read, taken
and construed as one and the same instrument. Except as specifically amended
above, the Indenture shall remain in full force and effect and is hereby
ratified and confirmed.

SECTION 2.02. Governing Law.  Section 12.8 of the Indenture shall apply
to this Supplemental Indenture.

SECTION 2.03. Trust Indenture Act Controls.
No modification of any provisions of the Indenture effected by this
Supplemental Indenture is intended to eliminate or limit any provision of the
Indenture that is required to be included therein by the Trust Indenture Act of
1939, as amended, as in force as of the effectiveness of this Supplemental
Indenture.

SECTION 2.04. Trustee Disclaimer; Trust.
The recitals contained in this Supplemental Indenture shall be taken as the
statements of MTR, and the Trustee assumes no responsibility for their
correctness. The Trustee makes no representations as to the validity or
sufficiency of this Supplemental Indenture. The Trustee accepts the trust
created by the Indenture, as supplemented by this Supplemental Indenture, and
agrees to perform the same upon the terms and conditions of the Indenture, as
supplemented hereby.

SECTION 2.05. Counterparts. This Supplemental
Indenture may be executed in any number of counterparts, each of which shall be
an original; but such counterparts shall constitute but one and the same
instrument.

SECTION 2.06. Effect of Headings.
The Article and Section headings herein are for convenience only and shall not
affect the construction hereof.

SECTION 2.07. Severability.
In case any provision of this Supplemental Indenture shall be invalid, illegal
or unenforceable, including any amendment or waiver that, pursuant to Section
9.2 of the Indenture, requires the consent of each Holder affected, the
validity, legality and enforceability of the remaining provisions shall not in
any way be effected or impaired thereby.

[Signature
Pages Follow]

 I-3
 

IN WITNESS WHEREOF,
the parties hereto have caused this Supplemental Indenture to be duly executed all
as of the date hereof.

ISSUER:

	
  

  	
  MTR GAMING GROUP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edson R. Arneault

  	
   

  
	
   

  	
   

  	
  Name: Edson R. Arneault

  
	
   

  	
   

  	
  Title: President and CEO

  

 

 I-4
 

GUARANTORS:

	
  

  	
  MOUNTAINEER PARK, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edson R. Arneault

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Edson R. Arneault

  
	
   

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  PRESQUE ISLE DOWNS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edson R. Arneault

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Edson R. Arneault

  
	
   

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SPEAKEASY GAMING OF LAS VEGAS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edson R. Arneault

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Edson R. Arneault

  
	
   

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SCIOTO DOWNS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edson R. Arneault

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Edson R. Arneault

  
	
   

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SPEAKEASY GAMING OF FREMONT, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edson R. Arneault

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Edson R. Arneault

  
	
   

  	
   

  	
  Title:

  	
  President

  
					

 

 I-5
 

 

	
  

  	
  JACKSON RACING, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edson R. Arneault

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Edson R. Arneault

  
	
   

  	
   

  	
  Title:

  	
  President

  
					

 

	
  WELLS FARGO BANK, N.A., as Trustee

  
	
   

  	
   

  
	
  By:

  	
  /s/ Joseph P. O’Donnell

  	
   

  
	
   

  	
  Name: Joseph P. O’Donnell

  
	
   

  	
  Title: Vice President

  

 

 I-6Exhibit 10.1

EXECUTION VERSION

 

 

CREDIT AGREEMENT

dated as of June 15, 2007

among

MAIDENFORM, INC.,

as Company,

MAIDENFORM BRANDS, INC.,

as Holdings,

THE LENDERS LISTED HEREIN,

as Lenders

and

BANK OF AMERICA, N.A.,

as Administrative Agent,
Swing Line Lender, and Issuing Lender

and

CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC,

as Sole Lead Arranger

 

TABLE OF CONTENTS

	
  SECTION 1.

  	
   

  	
  DEFINITIONS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.1

  	
   

  	
  Certain Defined Terms

  	
   

  	
  1

  
	
  1.2

  	
   

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

  	
   

  	
  36

  
	
  1.3

  	
   

  	
  Other Definitional Provisions and Rules of Construction

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
   

  	
  AMOUNTS AND TERMS OF COMMITMENTS AND LOANS

  	
   

  	
  37

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.1

  	
   

  	
  Commitments; Making of Loans; the Register; Optional
  Notes

  	
   

  	
  37

  
	
  2.2

  	
   

  	
  Interest on the Loans

  	
   

  	
  46

  
	
  2.3

  	
   

  	
  Fees

  	
   

  	
  50

  
	
  2.4

  	
   

  	
  Repayments, Prepayments and Reductions in Revolving Loan
  Commitment Amount; General Provisions Regarding Payments; Application of
  Proceeds of Collateral and Payments after Event of Default

  	
   

  	
  51

  
	
  2.5

  	
   

  	
  Use of Proceeds

  	
   

  	
  57

  
	
  2.6

  	
   

  	
  Special Provisions Governing LIBOR Loans

  	
   

  	
  58

  
	
  2.7

  	
   

  	
  Increased Costs; Taxes; Capital Adequacy

  	
   

  	
  60

  
	
  2.8

  	
   

  	
  Tax Treatment

  	
   

  	
  65

  
	
  2.9

  	
   

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

  	
   

  	
  65

  
	
  2.10

  	
   

  	
  Replacement of a Lender

  	
   

  	
  66

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
   

  	
  LETTERS OF CREDIT

  	
   

  	
  67

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.1

  	
   

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

  	
   

  	
  67

  
	
  3.2

  	
   

  	
  Letter of Credit Fees

  	
   

  	
  71

  
	
  3.3

  	
   

  	
  Drawings and Reimbursement of Amounts Paid Under
  Letters of Credit

  	
   

  	
  72

  
	
  3.4

  	
   

  	
  Obligations Absolute

  	
   

  	
  75

  
	
  3.5

  	
   

  	
  Nature of Issuing Lenders’ Duties

  	
   

  	
  77

  
	
  3.6

  	
   

  	
  Additional Letter of Credit Provisions

  	
   

  	
  78

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
   

  	
  CONDITIONS TO LOANS AND LETTERS OF CREDIT

  	
   

  	
  79

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.1

  	
   

  	
  Conditions to Effectiveness

  	
   

  	
  79

  
	
  4.2

  	
   

  	
  Conditions to All Loans

  	
   

  	
  82

  
	
  4.3

  	
   

  	
  Conditions to Incremental Term Loans

  	
   

  	
  82

  
	
  4.4

  	
   

  	
  Conditions to Letters of Credit

  	
   

  	
  83

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
   

  	
  COMPANY’S AND HOLDINGS’ REPRESENTATIONS AND
  WARRANTIES

  	
   

  	
  84

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.1

  	
   

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

  	
   

  	
  84

  
	
  5.2

  	
   

  	
  Authorization of Borrowing, etc.

  	
   

  	
  85

  
	
  5.3

  	
   

  	
  Financial Condition

  	
   

  	
  85

  
	
  5.4

  	
   

  	
  No Material Adverse Change

  	
   

  	
  86

  
	
  5.5

  	
   

  	
  Title to Properties; Liens; Real Property;
  Intellectual Property

  	
   

  	
  86

  
	
  5.6

  	
   

  	
  Litigation; Adverse Facts

  	
   

  	
  87

  
	
  5.7

  	
   

  	
  Payment of Taxes

  	
   

  	
  87

  
	
  5.8

  	
   

  	
  Performance of Agreements

  	
   

  	
  88

  
	
  5.9

  	
   

  	
  Governmental Regulation

  	
   

  	
  88

  
	
  5.10

  	
   

  	
  Securities Activities

  	
   

  	
  88

  
	
  5.11

  	
   

  	
  Employee Benefit Plans

  	
   

  	
  88

  

 

 i
 

 

	
  5.12

  	
   

  	
  Certain Fees

  	
   

  	
  89

  
	
  5.13

  	
   

  	
  Environmental Protection

  	
   

  	
  89

  
	
  5.14

  	
   

  	
  Employee Matters

  	
   

  	
  89

  
	
  5.15

  	
   

  	
  Solvency

  	
   

  	
  90

  
	
  5.16

  	
   

  	
  Matters Relating to Collateral

  	
   

  	
  90

  
	
  5.17

  	
   

  	
  Disclosure

  	
   

  	
  90

  
	
  5.18

  	
   

  	
  Foreign Assets Control Regulations, Etc.

  	
   

  	
  91

  
	
  5.19

  	
   

  	
  Compliance with Laws

  	
   

  	
  91

  
	
  5.20

  	
   

  	
  Taxpayer Identification Number

  	
   

  	
  91

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
   

  	
  COMPANY’S AND HOLDINGS’ AFFIRMATIVE COVENANTS

  	
   

  	
  91

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.1

  	
   

  	
  Financial Statements and Other Reports

  	
   

  	
  92

  
	
  6.2

  	
   

  	
  Existence, etc.

  	
   

  	
  96

  
	
  6.3

  	
   

  	
  Payment of Taxes and Claims; Tax

  	
   

  	
  96

  
	
  6.4

  	
   

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

  	
   

  	
  97

  
	
  6.5

  	
   

  	
  Inspection Rights; Lender Meeting

  	
   

  	
  98

  
	
  6.6

  	
   

  	
  Compliance with Laws, etc.

  	
   

  	
  99

  
	
  6.7

  	
   

  	
  Environmental Matters

  	
   

  	
  99

  
	
  6.8

  	
   

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

  	
   

  	
  100

  
	
  6.9

  	
   

  	
  Matters Relating to Additional Real Property
  Collateral

  	
   

  	
  101

  
	
  6.10

  	
   

  	
  Deposit Accounts and Securities Accounts

  	
   

  	
  101

  
	
  6.11

  	
   

  	
  Equitable Lien in Favor of Lenders

  	
   

  	
  102

  
	
  6.12

  	
   

  	
  Collateral Records

  	
   

  	
  102

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
   

  	
  COMPANY’S AND HOLDINGS’ NEGATIVE COVENANTS

  	
   

  	
  102

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.1

  	
   

  	
  Indebtedness

  	
   

  	
  103

  
	
  7.2

  	
   

  	
  Liens and Related Matters

  	
   

  	
  104

  
	
  7.3

  	
   

  	
  Investments; Acquisitions

  	
   

  	
  106

  
	
  7.4

  	
   

  	
  Contingent Obligations

  	
   

  	
  108

  
	
  7.5

  	
   

  	
  Restricted Junior Payments

  	
   

  	
  109

  
	
  7.6

  	
   

  	
  Financial Covenants

  	
   

  	
  109

  
	
  7.7

  	
   

  	
  Restriction on Fundamental Changes; Asset Sales

  	
   

  	
  110

  
	
  7.8

  	
   

  	
  Consolidated Capital Expenditures

  	
   

  	
  112

  
	
  7.9

  	
   

  	
  Transactions with Shareholders and Affiliates

  	
   

  	
  113

  
	
  7.10

  	
   

  	
  Sales and Lease-Backs

  	
   

  	
  113

  
	
  7.11

  	
   

  	
  Conduct of Business

  	
   

  	
  114

  
	
  7.12

  	
   

  	
  Fiscal Year

  	
   

  	
  114

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
   

  	
  EVENTS OF DEFAULT

  	
   

  	
  114

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.1

  	
   

  	
  Failure to Make Payments When Due

  	
   

  	
  114

  
	
  8.2

  	
   

  	
  Default in Other Agreements

  	
   

  	
  114

  
	
  8.3

  	
   

  	
  Breach of Certain Covenants

  	
   

  	
  115

  
	
  8.4

  	
   

  	
  Breach of Warranty

  	
   

  	
  115

  
	
  8.5

  	
   

  	
  Other Defaults Under Loan Documents

  	
   

  	
  115

  
	
  8.6

  	
   

  	
  Involuntary Bankruptcy; Appointment of Receiver,
  etc.

  	
   

  	
  115

  
	
  8.7

  	
   

  	
  Voluntary Bankruptcy; Appointment of Receiver, etc.

  	
   

  	
  116

  
	
  8.8

  	
   

  	
  Judgments and Attachments

  	
   

  	
  116

  
	
  8.9

  	
   

  	
  Dissolution

  	
   

  	
  116

  
	
  8.10

  	
   

  	
  Employee Benefit Plans

  	
   

  	
  116

  
	
  8.11

  	
   

  	
  Change in Control

  	
   

  	
  116

  
	
  8.12

  	
   

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

  	
   

  	
  117

  

 

 ii
 

 

	
  8.13

  	
   

  	
  Conduct of Business By Holdings

  	
   

  	
  117

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.

  	
   

  	
  ADMINISTRATIVE AGENT

  	
   

  	
  118

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.1

  	
   

  	
  Appointment

  	
   

  	
  118

  
	
  9.2

  	
   

  	
  Powers and Duties; General Immunity

  	
   

  	
  119

  
	
  9.3

  	
   

  	
  Independent Investigation by Lenders; No
  Responsibility for Appraisal of Creditworthiness

  	
   

  	
  122

  
	
  9.4

  	
   

  	
  Right to Indemnity

  	
   

  	
  122

  
	
  9.5

  	
   

  	
  Resignation of Administrative Agent; Successor Administrative
  Agent, Swing Line Lender and Issuing Lender

  	
   

  	
  122

  
	
  9.6

  	
   

  	
  Collateral Documents and Guaranty

  	
   

  	
  124

  
	
  9.7

  	
   

  	
  Duties of Sole Lead Arranger

  	
   

  	
  125

  
	
  9.8

  	
   

  	
  Administrative Agent May File Proofs of Claim

  	
   

  	
  125

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 10.

  	
   

  	
  MISCELLANEOUS

  	
   

  	
  126

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.1

  	
   

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

  	
   

  	
  126

  
	
  10.2

  	
   

  	
  Expenses

  	
   

  	
  129

  
	
  10.3

  	
   

  	
  Indemnity

  	
   

  	
  130

  
	
  10.4

  	
   

  	
  Set-Off

  	
   

  	
  131

  
	
  10.5

  	
   

  	
  Ratable Sharing

  	
   

  	
  132

  
	
  10.6

  	
   

  	
  Amendments and Waivers

  	
   

  	
  133

  
	
  10.7

  	
   

  	
  Independence of Covenants

  	
   

  	
  134

  
	
  10.8

  	
   

  	
  Notices; Effectiveness of Signatures

  	
   

  	
  134

  
	
  10.9

  	
   

  	
  Survival of Representations, Warranties and
  Agreements

  	
   

  	
  137

  
	
  10.10

  	
   

  	
  Failure or Indulgence Not Waiver; Remedies
  Cumulative

  	
   

  	
  137

  
	
  10.11

  	
   

  	
  Marshalling; Payments Set Aside

  	
   

  	
  137

  
	
  10.12

  	
   

  	
  Severability

  	
   

  	
  137

  
	
  10.13

  	
   

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

  	
   

  	
  138

  
	
  10.14

  	
   

  	
  Release of Security Interest or Guaranty

  	
   

  	
  138

  
	
  10.15

  	
   

  	
  Applicable Law

  	
   

  	
  139

  
	
  10.16

  	
   

  	
  Construction of Agreement; Nature of Relationship

  	
   

  	
  139

  
	
  10.17

  	
   

  	
  Consent to Jurisdiction and Service of Process

  	
   

  	
  139

  
	
  10.18

  	
   

  	
  Waiver of Jury Trial

  	
   

  	
  140

  
	
  10.19

  	
   

  	
  Confidentiality

  	
   

  	
  141

  
	
  10.20

  	
   

  	
  Counterparts; Integration; Effectiveness

  	
   

  	
  142

  
	
  10.21

  	
   

  	
  Reimbursement by Lenders

  	
   

  	
  143

  
	
  10.22

  	
   

  	
  USA Patriot Act Notice

  	
   

  	
  143

  

 

 iii
 

 

	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  I-A

  	
  -

  	
  FORM OF NOTICE OF BORROWING

  	
   

  	
   

  
	
  I-B

  	
  -

  	
  FORM OF NOTICE OF BORROWING (SWING LINE)

  	
   

  	
   

  
	
  II

  	
  -

  	
  FORM OF NOTICE OF CONVERSION/CONTINUATION

  	
   

  	
   

  
	
  III-A

  	
  -

  	
  FORM OF L/C APPLICATION (COMMERCIAL)

  	
   

  	
   

  
	
  III-B

  	
  -

  	
  FORM OF L/C APPLICATION (STANDBY)

  	
   

  	
   

  
	
  IV

  	
  -

  	
  FORM OF TERM NOTE

  	
   

  	
   

  
	
  V

  	
  -

  	
  FORM OF REVOLVING NOTE

  	
   

  	
   

  
	
  VI

  	
  -

  	
  FORM OF SWING LINE NOTE

  	
   

  	
   

  
	
  VII

  	
  -

  	
  FORM OF COMPLIANCE CERTIFICATE

  	
   

  	
   

  
	
  VIII

  	
  -

  	
  MATTERS TO BE COVERED BY 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

  	
   

  	
   

  
	
  2.2

  	
  -

  	
  PRICING GRID

  	
   

  	
   

  
	
  4.1C

  	
  -

  	
  CORPORATE AND CAPITAL STRUCTURE; OWNERSHIP;
  MANAGEMENT

  	
   

  	
   

  
	
  5.1

  	
  -

  	
  JURISDICTIONS OF ORGANIZATION; SUBSIDIARIES

  	
   

  	
   

  
	
  5.2C

  	
  -

  	
  GOVERNMENTAL CONSENTS

  	
   

  	
   

  
	
  5.5B

  	
  -

  	
  REAL PROPERTY

  	
   

  	
   

  
	
  5.5C

  	
  -

  	
  INTELLECTUAL PROPERTY

  	
   

  	
   

  
	
  5.6

  	
  -

  	
  LITIGATION

  	
   

  	
   

  
	
  5.7

  	
  -

  	
  TAXES

  	
   

  	
   

  
	
  5.16B

  	
  -

  	
  THIRD-PARTY FILINGS

  	
   

  	
   

  
	
  7.1

  	
  -

  	
  CERTAIN EXISTING INDEBTEDNESS

  	
   

  	
   

  
	
  7.2A

  	
  -

  	
  CERTAIN EXISTING LIENS

  	
   

  	
   

  
	
  7.2B

  	
  -

  	
  CERTAIN EXISTING NEGATIVE PLEDGES

  	
   

  	
   

  
	
  7.3

  	
  -

  	
  CERTAIN EXISTING INVESTMENTS

  	
   

  	
   

  
	
  7.9

  	
  -

  	
  TRANSACTIONS WITH SHAREHOLDERS AND AFFILIATES

  	
   

  	
   

  
	
  10.8

  	
  -

  	
  CERTAIN ADDRESSES FOR NOTICES, PAYMENTS AND OTHER
  PURPOSES

  	
   

  	
   

  

 

 iv

CREDIT AGREEMENT

THIS CREDIT AGREEMENT is
dated as of June 15, 2007 (the “Closing Date”)
and entered into by and among Maidenform, Inc., a New York corporation (“Company”), Maidenform Brands, Inc., a Delaware corporation (“Holdings”), the financial institutions listed as lenders on
the signature pages hereof and those financial institutions which become
lenders hereunder pursuant to the terms, conditions and provisions of
subsection 10.1 (collectively, the “Lenders”) Bank
of America, N.A., as administrative agent for the Lenders (in such capacity, “Administrative Agent”), Bank of America, N.A., as the swing
line lender (in such capacity, “Swing Line Lender”),
and Bank of America, N.A., as an issuer of Letters of Credit (in such capacity,
“Issuing Lender”).

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 “accounts”
(as such term is defined in the UCC), now owned or hereafter acquired by such
Person, including, without limitation: 
(i) all accounts receivable, other receivables, book debts and
other forms of obligations (other than forms of obligations evidenced by “chattel
paper” or “instruments” (as each of such terms are defined in the UCC)),
including any such obligations which may be characterized as an account or
contract right under the UCC; (ii) all of such Person’s rights in, to and
under all purchase orders or receipts for goods or services; (iii) all of
such Person’s rights to any goods represented by any of the foregoing
(including unpaid sellers’ rights of rescission, replevin, reclamation and
stoppage in transit and rights to returned, reclaimed or repossessed goods);
and (iv) all rights to payment due to such Person for goods or other
property sold, leased, licensed, assigned or otherwise disposed of, for a
policy of insurance issued or to be issued, for a secondary obligation incurred
or to be incurred or to be incurred, for energy provided or to be provided, for
the use or hire of a vessel under a charter or other contract, arising out of
the use of a credit card or charge card, or for services rendered or to be
rendered by such Person or in connection with any other transaction, whether or
not yet earned by performance on the part of such Person.

“Active
Subsidiary” means any Subsidiary that owns assets with a fair market
value in excess of $5,000.00.

“Additional
Mortgage Policy” means an ALTA mortgagee title insurance policy
issued by the Title Company in favor of Administrative Agent, for the benefit
of the Lenders, with respect to an Additional Mortgaged Property, in an amount
not less than the amount reasonably required by Administrative Agent and, at
any time when there are one or two Lender Groups, the Requisite Lenders,
insuring Administrative Agent that the relevant Loan Party has fee simple title
to, or a valid leasehold interest in, such Additional Mortgaged Property and
further insuring 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 (such 

 1
 

approval not to be unreasonably withheld, delayed or
conditioned), 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 (as determined by Administrative
Agent) 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.

“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 1/100
of 1%) determined by Administrative Agent 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 or LIBOR, respectively.

“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.

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

“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
Administrative Agent, nor Sole Lead Arranger, nor any of their respective
Affiliates shall be deemed to be an Affiliate of any Loan Party.

“Agent Fee
Letter” means the letter agreement, dated of even date herewith by
and between Administrative Agent and Company, pursuant to which Company has
agreed to pay Administrative Agent an annual fee in connection with
Administrative Agent’s performance of its responsibilities hereunder.

 2
 

“Agent
Parties” has the meaning assigned to that term in subsection 10.8C.

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

“Agreement”
means this Credit Agreement, as amended, restated, supplemented or otherwise
modified from time to time.

“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 or other disposition by Company or any of its Subsidiaries to
any Person other than Company or any Subsidiary Guarantor that is a Wholly
Owned Subsidiary 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 business of Company or any of its Subsidiaries, or (iii) any other
assets (whether tangible or intangible including Intellectual Property) 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 (I) in
any single transaction or related series of transactions is equal to
$250,000.00 or less and (II) in any Fiscal Year is equal to $1,000,000.00
or less).

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

“Attributable
Indebtedness” means, when used with respect to any sale and
leaseback transaction, the obligations of the lessee for rental payments during
the remaining term of the lease included in any such sale and leaseback
transaction.

“Auto-Extension
Letter of Credit” has the meaning assigned to that term in
subsection 3.1A(iii).

“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 fluctuating rate per annum (rounded upward, if necessary,
to the nearest 1/100 of 1%) equal to the higher of (i) the sum of (a) the
Federal Funds Effective Rate plus (b) fifty basis points (0.50%) and
(ii) the Prime Rate.  Any change in the
Base Rate due to a change in the Federal Funds Effective Rate or the Prime Rate
shall take effect at the opening of business on the day specified in the public
announcement of such change in the Federal Funds Effective Rate or the Prime
Rate, respectively.

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

 3
 

“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, as said margin
is set forth and described on Schedule 2.2 annexed hereto.

“BBA LIBOR”
has the meaning assigned to that term in the definition of “LIBOR”.

“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 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 (a) 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
(b) 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 (rounded to two decimal places) 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.

 4
 

“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
Collateralize” means to pledge and deposit with or deliver to
Administrative Agent, for the benefit of Issuing Lender and Revolving Lenders,
as collateral for the Letter of Credit Usage, cash or deposit account balances
pursuant to documentation in form and substance reasonably satisfactory to
Administrative Agent and Issuing Lender (which documents are hereby consented
to by Revolving Lenders).  Derivatives of
such term have corresponding meanings.

“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 any
member of the European Union or (b) issued by any agency of the United
States or any member of the European Union the obligations of which are backed
by the full faith and credit of the United States or any member of the European
Union, 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 deposit, bankers’ acceptances,
Eurodollar time deposits or money market deposits 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
$100.0 million; (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 $500.0 million;
(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; (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; (viii) money market funds that
(a) comply with the criteria set forth in Rule 2a 7 under the Investment
Company Act of 1940, (b) are rated AAA by S&P and Aaa by Moody’s and
(c) have portfolio assets of at least $500.0 million; (ix) time
deposit accounts, certificates of deposit and money market deposits in an
aggregate face amount not in excess of 1/2 of 1% of the total assets of Company
and the Subsidiaries, on a consolidated basis, as of the end of Company’s most
recently completed fiscal year; and (x) other short-term investments
utilized by Foreign Subsidiaries in accordance with normal investment practices
for cash management, in investments of a type analogous to the foregoing.

 5
 

“Change in
Control” means any of the following: (i) any Person (other than
Ares or its Affiliates), either individually or acting in concert with one or
more other Persons (other than Ares or its Affiliates), shall have acquired
beneficial ownership, directly or indirectly, of Capital Stock of Holdings (or
other Capital Stock convertible into such Capital Stock) representing 30% 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;
(ii) 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 (iii) 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, in each case as in effect
on the date hereof.

“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”
has the meaning assigned to that term in the introduction to this 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 in favor of Administrative Agent, on behalf of Lenders, and
dated as of the Closing Date.

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

“Closing Date
Term Loan” and “Closing Date Term Loans”
means the Loans made by Lenders to Company pursuant to subsection 2.1A(i)(a).

“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.

 6
 

“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 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.

“Commercial
Letter of Credit” means any letter of credit 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.

“Commitment
Fee Percentage” has the meaning assigned to that term in subsection
2.3A.

“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.

“Company
Account” has the meaning assigned to that term in subsection
2.4C(i).

“Company
Materials” has the meaning assigned to that term in subsection 6.1.

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

“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 Holdings and its Subsidiaries)
by Holdings 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 Holdings 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, (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 Holdings and its
Subsidiaries shall not be included in Consolidated Capital Expenditures and
(iii) Consolidated Capital Expenditures shall not include 

 7
 

(a) interest capitalized during such period,
(b) expenditures that are accounted for as capital expenditures of such
Person and that actually are paid for by a third party (excluding Holdings,
Company or any Subsidiary thereof) and for which none of  Holdings, Company or any Subsidiary has
provided or is required to provide or incur, directly or indirectly, any
consideration or obligation to such third party or any other Person (whether
before, during or after such period), (c) the book value of any asset
owned by such Person prior to or during such period to the extent that such
book value is included as a capital expenditure during such period as a result
of such Person reusing or beginning to reuse such asset during such period
without a corresponding expenditure actually having been made in such period, provided
that (I) any expenditure necessary in order to permit such asset to be
reused shall be included as a Consolidated Capital Expenditure during the
period that such expenditure actually is made and (II) such book value
shall have been included in Consolidated Capital Expenditures when such asset was
originally acquired, (d) expenditures to the extent they are financed with
the proceeds of a disposition of used, obsolete, worn out or surplus equipment
or property in the ordinary course of business, or (e) expenditures to the
extent they are financed with the proceeds of an issuance of Junior Capital not
later than six months after the receipt of such proceeds by Holdings or
Company.

“Consolidated
Cash Interest Expense” means, for any period, Consolidated Interest
Expense for such period, excluding, however, without duplication
and to the extent included in Consolidated Interest Expense, (i) any
interest expense not payable in Cash (including amortization of discount and
amortization of debt issuance costs), (ii) the amortization of any
financing fees paid by, or on behalf of, Holdings or any Subsidiary, including
such fees paid in connection with the execution and delivery of the Loan
Documents and the transactions contemplated thereby, (iii) the
amortization of debt discounts, if any, or fees in respect of any Swap
Agreement and (iv) one-time financing fees, including those paid in
connection with the execution and delivery of the Loan Documents and the
transactions contemplated thereby.

“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 Holdings) in which any other Person (other than Holdings
or any of its Subsidiaries) has a joint interest, except to the extent of the
amount of dividends or other distributions actually paid to Holdings 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
Holdings or is merged into or consolidated with Holdings or any of its
Subsidiaries or that Person’s assets are acquired by Holdings or any of its
Subsidiaries, (c) the income of any Subsidiary of Holdings 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 (except
to the extent that the undistributed earnings of such Subsidiary have been
loaned (on an interest free basis) by such Subsidiary to a Loan Party, so long
as such loan (and the receipt of the proceeds thereof) is not prohibited by
operation of the terms of its charter or any agreement, instrument, judgment,
decree, order, statute, rule or governmental regulation applicable to that
Subsidiary (other than under any Loan Document)), (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 non-recurring gains or net non-cash unusual or non-

 8
 

recurring 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) rating agency fees paid to obtain or maintain ratings on
Indebtedness of Holdings and its Subsidiaries plus (ix) net cash
charges incurred in connection with the Headquarters office relocation and sale
plus (x) any non-cash charges, adjustments (which may be a negative
number, in the case of positive adjustments to Consolidated Net Income) and
expenses after the Closing Date relating to the application of purchase
accounting plus (xi) fees, costs and expenses incurred on, prior to
or following the Closing Date in connection with negotiation, execution and
delivery and amendment or modification of this Agreement and the other Loan
Documents, but only, in the case of clauses (ii)-(xi), to the extent
deducted in the calculation of Consolidated Net Income, less non-cash
items added in the calculation of Consolidated Net Income (other than any such
non-cash item (1) to the extent it will result in the receipt of cash
payments in any future period, (2) any non-cash items netted against non-cash
charges in clause (vi), and (3) which represents the reversal of any
accrual of, or cash reserve for, anticipated cash charges in any prior period),
all of the foregoing as determined on a consolidated basis for Holdings and its
Subsidiaries in conformity with GAAP.

“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 Holdings or any of its Subsidiaries is a
party as lessee), (iii)  federal, state and local income Taxes actually
paid to any Government Authority during such period (whether or not payable in
respect of such period), calculated so as to take into account net operating
loss carry forwards, credits and other tax benefits available to Holdings and
its Subsidiaries  and (iv) Restricted Junior
Payments (excluding Restricted Junior Payments described in clauses (i) and
(ii) of the definition thereof, made within 10 Business Days of the making of
an Incremental Term Loan and funded directly by the proceeds of such
Incremental Term Loan), all of the foregoing as determined on a consolidated
basis for Holdings 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 Holdings and its Subsidiaries on a consolidated
basis with respect to all outstanding Indebtedness of Holdings 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, (i) any such amounts referred to in subsection 2.3B payable on
the Closing Date and (ii) to the extent included in such interest expense,
amortization or write-off of financing costs.

 9
 

“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
Holdings 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 Holdings and its Subsidiaries, determined on a consolidated
basis in accordance with GAAP, plus (ii) the Commercial Letter of
Credit Usage, plus (iii) the excess of Standby Letter of Credit
Usage over $4,000,000, minus (iv) without duplication, the fair
market value of unrestricted and unencumbered cash, Cash Equivalents and
marketable securities of Holdings and its Subsidiaries as shown on said balance
sheet.

“Contingent
Obligation” means, as applied to any Person, 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 (1) 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, (2) 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 (3) any liability of such
Person for the obligation of another through any agreement (contingent or otherwise)
(a) 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 (b) 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 (a) or (b) of this sentence, the
primary purpose or intent thereof is as described in the preceding
sentence.  The amount of any Contingent
Obligation of any Person shall be deemed to be the lower of (I) an amount
equal to the stated or determinable amount of the primary obligation in respect
of which such Contingent Obligation is made and (II) the maximum amount
for which such Person may be liable pursuant to the terms of the instrument
embodying such Contingent Obligation, unless such primary obligation and the
maximum amount for which such Person may be liable are not stated or determinable,
in which case the amount of such Contingent Obligation shall be such Person’s
maximum reasonably anticipated liability in respect thereof as determined by
such Person in good faith (and reasonably acceptable to Administrative Agent
and, at any time when there are one or two Lender Groups, the Requisite
Lenders).

 10
 

“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
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” and “Control Agreements”
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.

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

“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; provided that the term “Domestic Subsidiary” shall
not include any Subsidiary that is a “controlled foreign corporation” within
the meaning of Section 957(a) of the Internal Revenue Code, with respect to
Company, Holdings or any of their Subsidiaries.

“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 $100.0 million; or (ii) (a) a
commercial bank, pension fund administrator or other financial institution
organized under the laws of the United States or any state thereof; (b) a
savings and loan association or savings bank organized 

 11
 

under the laws of the United States or any state
thereof; (c) a commercial bank, pension fund administrator or other
financial institution organized under the laws of any other country or a
political subdivision thereof; provided that (I) such bank, pension
fund administrator or other financial institution is acting through a branch or
agency located in the United States or (II) such bank, pension fund
administrator or other financial institution 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 or obligations in respect of
Incremental Term Loans such Person shall be at least “adequately capitalized”
(as defined in the regulations of its primary banking regulator) and shall have
Tier 1 capital (as defined in such regulations) of not less than $100.0
million; 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 or obligations in respect of Incremental Term
Loans such Person shall have net assets of not less than $100.0 million; provided
that in no case shall any Loan Party, any Affiliate or Subsidiary of any Loan
Party, or any natural person 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:

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

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

(iii)          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 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

(iv)          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

(v)           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

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

 12
 

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

(viii)        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 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

(ix)           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:

(i)            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

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

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

(iv)          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, Macy’s, Inc., Wal-Mart or Kohl’s Corporation,
as the case may be, has a corporate credit rating of at least B 1 from Moody’s
or B+ from S&P, such percentage shall be increased to 40% with respect to
Accounts for which Macy’s, Inc., Wal-Mart or Kohl’s Corporation, as the case
may be, is the account debtor; or

 13
 

(v)           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

(vi)          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

(vii)         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

(viii)        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

(ix)           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

(x)            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

(xi)           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

(xii)          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

(xiii)         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.

 14
 

“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.

“Environmental
Claim” means any written notice, notice of violation, claim, action,
suit, demand, abatement order or other written order or directive, by any
Government Authority with jurisdiction over the matter 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 applicable statutes, ordinances, orders,
rules, regulations, judgments, Governmental Authorizations, or any other
requirements having the force and effect of law, of any Government Authority
with jurisdiction over the matter 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, 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(c) or (d) of
the Internal Revenue Code) or the failure to make by its due date a required
installment under Section 412(m) or 430(j) 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 

 15
 

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, 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, that it is in endangered or critical
status, within the meaning of Section 305 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), 412(n) or 430(k) of the Internal Revenue Code or pursuant to ERISA
with respect to any Pension Plan.

“Eurodollar
Reserve Percentage” means, for any day during any Interest Period,
the reserve percentage (expressed as a decimal, carried out to five decimal
places) in effect on such day, whether or not applicable to any Lender, under
regulations issued from time to time by the Board of Governors of the Federal
Reserve System of the United States 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”).

“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.

“Excluded
Taxes” means, with respect to the Administrative Agent, any Lender,
any Issuing Lender, any assignee, or any other recipient of any payment to be
made by or on account of any obligation of the Loan Parties hereunder, (i)
Taxes imposed on or measured by its overall net income however denominated
(including, except as set forth in subsection 2.7B(iii)(f), “backup withholding”
prescribed by Section 3406 of the Internal Revenue Code or applicable, analogous
provisions of foreign, state or local law), and franchise Taxes imposed on it
(in lieu of net income Taxes), by the jurisdiction (or any political
subdivision thereof) under the laws of 

 16
 

which such recipient is organized or in which its
principal office is located or, in the case of any Lender, in which its
applicable lending office is located, (ii) any branch profits taxes imposed on
it by the United States or any similar tax imposed on it by any other
jurisdiction in which any Loan Party is located, (iii) in the case of an
Eligible Assignee that is a Non-US Lender (“Non-US
Assignee”) (other than an assignee pursuant to a request by Company
under subsection 2.10), any withholding Tax that is imposed on amounts payable
to such Non-US Assignee at the time such Non-US Assignee becomes a party under
this Agreement (or designates a new lending office) or is attributable to such
Non-US Assignee’s failure or inability (other than as a result of a change in
law) to comply with subsection 2.7B(iii)(a), and (iv) in the case of an
Eligible Assignee that is a US Lender (“US Assignee”)
(other than an assignee pursuant to a request by Company under subsection
2.10), any backup withholding that is imposed on amounts payable to such US
Assignee at the time such US Assignee becomes a party under this Agreement (or
designates a new lending office) or is attributable to such US Assignee’s
failure or inability (other than as a result of a change in law) to comply with
subsection 2.7B(iii)(d).

“Existing
Credit Documents” means the Amended and Restated Credit Agreement
dated as of June 29, 2005 among Company, Holdings, the lenders thereunder and
BNP Paribas, as administrative agent, as amended, and all other “Loan Documents”
(as defined therein).

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

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

“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 

 17
 

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 2007 through 2014.

“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.

“Foreign
Intellectual Property” means any Intellectual Property of Company or
any of its Subsidiaries that is registered or protected under any law, rule or
regulation of any Government Authority other than the United States, any state
thereof or any other political subdivision thereof, but excluding any such
Intellectual Property to the extent registered or protected under any law, rule
or regulation of any Government Authority of the United States, any state
thereof or any other political subdivision thereof.

“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” and “Foreign Pledge Agreements”  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.

“Foreign
Subsidiary” and “Foreign Subsidiaries”
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.

“Funding and
Payment Office” means (i) the offices of Administrative Agent,
Swing Line Lender and, if Administrative Agent is an Issuing Lender,
Administrative Agent as Issuing Lender, set forth and described on Schedule
10.8 annexed hereto or (ii) such other office of 

 18
 

Administrative Agent, Swing Line Lender and
Administrative Agent as Issuing Lender may from time to time hereafter be
designated as such in a written notice delivered by Administrative Agent, Swing
Line Lender and Administrative Agent as Issuing 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 or
other entity exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government, 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 notice, approval, permit, license,
registration, authorization, directive, accreditation, consent, order,
exemption or consent decree of or from or other action by or notice to or
filing with any Government Authority.

“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 friable 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.

“Headquarters”
means Company’s headquarters located at 154 Avenue E, Bayonne, NJ 07002.

 19
 

“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.

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

“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 regardless of whether the indebtedness secured thereby
shall have been assumed by that Person or is non-recourse 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.

“Indemnified
Taxes” means Taxes other than Excluded Taxes.

“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, processes, and other intellectual property
(including, without limitation, any present or future protection of fashion
designs afforded by any Government Authority) used in or necessary for the
conduct of the business of Company and its Subsidiaries.

“Interest
Payment Date” means (i) with respect to any Base Rate Loan, the
last Business Day of each calendar 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.

 20
 

“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” means, with respect to any Interest Period,
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.

“Investment”
means, as applied to any Person, without duplication, (i) any direct or
indirect purchase or other acquisition by such Person 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 such Person from any other Person other than
Company or any of its Subsidiaries, of any Capital Stock of such first Person,
(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 such Person 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 to either
of the two foregoing offices 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.

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

“Issuing
Lender” means, with respect to any Letter of Credit, 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.

 21
 

“Junior
Capital” means any Qualified Capital Stock of Holdings or Company
and any Junior Indebtedness.

“Junior
Indebtedness” means Indebtedness of Holdings or Company that
(i) is expressly subordinated to the prior payment in full in cash of the
Obligations (and the related Guarantees) on customary terms, and contains customary
covenants, events of default and remedies, in each case in the good faith
determination of Company and reasonably satisfactory to the Administrative
Agent (it being understood that customary high yield subordination terms,
covenants, events of default and remedies prevailing at the time of
determination, as determined by the Administrative Agent in its reasonable
judgment, shall be deemed to be so satisfactory to the Administrative Agent),
(ii) provides that interest in respect of such Indebtedness shall be
payable solely in kind, (iii) has a final maturity date that is not
earlier than the date that is 181 days after the Term Loan Maturity Date and
(iv) has no scheduled payments of principal thereon (including pursuant to a
sinking fund obligation) or mandatory redemption obligations prior to such
final maturity date.

“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 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, 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, Executive Vice President and Chief Legal Officer and Senior
Vice President of Finance, respectively.

“Knowledge”
means, with respect to any Person, either actual knowledge or knowledge that
reasonably should have been obtained by such Person.

“L/C
Application” means an L/C Application (Commercial) or L/C
Application (Standby), as the case may be.

“L/C
Application (Commercial)” means an application for the issuance or
amendment of a Commercial Letter of Credit, substantially in the form of Exhibit
III-A annexed hereto.

“L/C
Application (Standby)” means an application for the issuance or
amendment of a Standby Letter of Credit, substantially in the form of Exhibit
III-B annexed hereto.

“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.

 22
 

“Lender Group”
means, with respect to any Lender, a group of Lenders consisting of such Lender
and every other Lender which is an Affiliate of such Lender.

“Lender Swap
Agreements” means one or more Interest Rate Agreements or Currency
Agreements entered into from time to time by Company with one or more Swap
Counterparties, in each case in accordance with the terms of this Agreement.

“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 an Interest Period for a LIBOR Loan, the rate per annum equal to the
British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by
Reuters (or other commercially available source providing quotations of BBA
LIBOR as designated by Administrative Agent from time to time) at approximately
11:00 a.m., London time, two Business Days prior to the commencement of such
Interest Period, for Dollar deposits (for delivery on the first day of such
Interest Period) with a term equivalent to such Interest Period.  If such rate is not available at such time
for any reason, then “LIBOR” for such Interest Period shall be the rate
per annum determined by Administrative Agent to be the rate at which deposits
in Dollars for delivery on the first day of such Interest Period in same day
funds in the approximate amount of the LIBOR Loan being made, continued or
converted and with a term equivalent to such Interest Period would be offered
by Administrative Agent’s London branch to major banks in the London interbank
eurodollar market at their request at approximately 11:00 a.m. (London time)
two Business Days prior to the commencement of such Interest Period.

“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, as said margin is set forth and
described on Schedule 2.2 annexed hereto.

“Lien”
or “Liens” 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.

 23
 

“Loan
Documents” means this Agreement, the Notes, the Letters of Credit
(and any L/C 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, 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.

“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.

“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 a retail outlet and/or an office facility be
considered a “Material Leasehold Property”.

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

“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
favor of Administrative Agent, 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” means, with respect to any Asset Sale, 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 by seller in connection with such Asset Sale, including, 

 24
 

without limitation, (i) income taxes reasonably
estimated to be payable as a result of any gain recognized by seller in
connection with such Asset Sale, (ii) payment of the outstanding principal
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 by seller in connection
with such Asset Sale, (iv) any reserves required to be established by
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 Holdings, Company or their Subsidiaries.

“Net
Insurance/Condemnation Proceeds” means any Cash payments or proceeds
received by Company or any of its Domestic Subsidiaries (i) under any
business interruption, business income or casualty insurance policy in respect
of a covered loss thereunder or (ii) 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 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.

“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 2.10.

“Non-Extension
Notice Date” has the meaning assigned to that term in subsection
3.1A(iii).

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

 25

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

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

“Notice of Borrowing (Swing Line)” means a notice substantially
in the form of Exhibit I-B annexed hereto.

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

“Notice of Interest” has the meaning assigned to that term in
subsection 2.1B.

“Obligations” means all obligations of every nature of each
Loan Party from time to time owed to Administrative Agent, Lenders, Issuing
Lenders, Swap Counterparties or any of them under the Loan Documents and Lender
Swap Agreements, 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.

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

 26
 

“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 Encumbrances” means the following types of Liens
(excluding any such Lien imposed pursuant to Section 401(a)(29), 412(n) or
430(k) 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)           (a) carriers’,
warehousemen’s, landlord’s, mechanics’, materialmen’s, repairmen’s or other
like Liens imposed by law or arising in the ordinary course of business which
are not overdue or that are being contested in good faith by appropriate
proceedings and (b) Liens of customs and revenue authorities to secure
payment of customs duties in connection with the importation of goods to that
extent such Liens are 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 Liens;

(iii)          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 (x) for amounts not yet overdue or (y) 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 (I) such reserves or other appropriate provisions, if any, as
shall be required by GAAP shall have been made for any such contested amounts,
and (II) 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;

(iv)          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, appeal and customs bonds, 

 27
 

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

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

(vi)          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;

(vii)         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;

(viii)        any (a) interest or
title of a lessor or sublessor under any lease not prohibited by this Agreement
and limited to the property leased thereunder and other property located at or
on such leased property, (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);

(ix)           Liens arising from
filing UCC financing statements relating solely to leases or consignment of
goods in the ordinary course of business, in each case not prohibited by this
Agreement or any other Loan Document;

(x)            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;

(xi)           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;

(xii)          Liens granted pursuant
to the Collateral Documents;

(xiii)         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;

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

 28
 

(xv)         Liens arising from
conditional sale, consignment, title retention by third parties or similar
arrangements in connection with the acquisition of goods by Company or any of
its Subsidiaries in the ordinary course of business, provided that no default
in the obligations relating to such acquisition has occurred and is continuing;

(xvi)        Liens securing
Indebtedness of Company or any of its Subsidiaries incurred pursuant to
subsection 7.1(viii) to finance the acquisition, construction or improvement of
fixed or capital assets or the refinancing thereof, provided that
(a) such Liens shall be created within 180 days of the acquisition or
completion of such construction or improvement or refinancing of such fixed or
capital assets, (b) such Liens do not at any time encumber any property
other than the property financed by such Indebtedness when such Indebtedness
was originally incurred, and the proceeds of such property, (c) the amount
of Indebtedness, if any, secured thereby is not increased (in the case of a
refinancing) and (d) the principal amount of Indebtedness initially
secured thereby is not more than 100% of the purchase price or cost of
construction or improvement of such fixed or capital asset;

(xvii)       Liens on the assets of any
Foreign Subsidiary which secure Indebtedness permitted pursuant to subsection
7.1(ix);

(xviii)      Liens on unearned premiums
in respect of insurance policies securing insurance premium financing permitted
under subsection 7.1(ix);

(xix)         bankers’ Liens, rights of
setoff and other similar Liens existing solely with respect to cash and Cash
Equivalents on deposit in one or more accounts maintained by Company or any
Subsidiary, in each case granted in the ordinary course of business in favor of
the bank or banks with which such accounts are maintained, securing amounts
owing to such bank with respect to cash management and operating account
arrangements, including, without limitation, those involving pooled accounts
and netting arrangements; provided that, unless such Liens are non-consensual
and arise by operation of applicable law, in no case shall any such Liens
secure (either directly or indirectly) the repayment of any Indebtedness for
borrowed money;

(xx)          Liens on property rented
to, or leased by, Company or any of its Subsidiaries pursuant to a sale and
lease back transaction; provided that (a) such sale and leaseback
transaction is permitted by subsection 7.10, (b) such Liens do not
encumber any other property of Company or its Subsidiaries, and (c) such
Liens secure only the Attributable Indebtedness incurred in connection with
such sale and leaseback transaction; and

(xxi)         good faith escrow
deposits made in connection with a Permitted Acquisition.

“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.

 29
 

“Pledged Collateral” means, collectively, the “Pledged
Collateral” (as such term is defined in the Security Agreement and any Foreign
Pledge Agreement).

“Platform” has the meaning assigned to that term in
subsection 6.1.

“Potential Event of Default” means a condition or event
which, after the giving of notice, the 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, for any day, the rate of interest in
effect for such day as publicly announced from time to time by Administrative
Agent as its “prime rate.”  The “prime
rate” is a rate set by Administrative Agent based upon various factors
including Administrative Agent’s costs and desired return, general economic
conditions and other factors, and is used as a reference point for pricing some
loans, which may be priced at, above, or below such announced rate.  Any change in such rate announced by
Administrative Agent shall take effect at the opening of business on the day
specified in the public announcement of such change.

“Proceedings” means any action, suit, proceeding (whether
administrative, judicial or otherwise), claim, dispute, 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
Loans 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 Closing Date for purposes of each of clauses (i), (ii) and (iii) of the
preceding sentence is set forth on Schedule 2.1 annexed hereto.

“Public Lender” has the meaning assigned to that term in
subsection 6.1.

“Qualified Capital Stock” means any Capital Stock of any
Person that does not by its terms (or by the terms of any security into which
it is convertible or for which it is exchangeable or exercisable) or upon the
happening of any event (i) provide for scheduled payments of dividends in
cash, (ii) become mandatorily redeemable (other than pursuant to customary
provisions relating to redemption upon a change of control or sale of assets)
pursuant to a sinking fund obligation or otherwise prior to the date that is
181 days after the Term Loan Maturity Date, 

 30
 

or (iii) become
convertible or exchangeable at the option of the holder thereof for Indebtedness
(other than Junior Indebtedness) or Capital Stock that is not Qualified Capital
Stock.

“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.

“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 movement of any Hazardous Materials through the air,
soil, surface water or groundwater.

“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 at said time of determination 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 at said time of determination; provided
that, at any time when either Class of Lenders consists solely of two or fewer
Lender Groups, Requisite Class Lenders for such Class shall mean 100% of
Lenders of such Class.

“Requisite Lenders” means, as at any time of determination,
Lenders having or holding more than 50% of the sum of (i) the aggregate Term
Loan Exposure of all Lenders at said time of determination plus (ii) the
aggregate Revolving Loan Exposure of all Lenders at said time of determination;
provided that, at any time when there exist one or two Lender Groups,
Requisite Lenders shall mean 100% of Lenders.

“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 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.

 31
 

“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 of
determination, the aggregate amount of the Revolving Loan Commitments of all
Revolving Lenders.

“Revolving Loan Commitment Termination Date” means June 15,
2012.

“Revolving Loan Exposure” means, with respect to any
Revolving Lender, as of any date of determination (i) prior to the
termination of the Revolving Loan Commitments, the amount of such Revolving
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 such Revolving Lender plus
(b) in the event that such Revolving Lender is an Issuing Lender, the
aggregate Letter of Credit Usage in respect of all Letters of Credit issued by
such Revolving 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 such Revolving 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 risk participations thereof deemed purchased by
other Revolving Lenders) plus (e) the aggregate amount of all risk
participations deemed purchased by such Revolving 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.

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

“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.

 32
 

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

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

“Sole Lead Arranger” means Caisse de dépôt et placement du
Québec.

“Solvent” means, with respect to any Person, that as of any
date of determination both (i) (a) the then fair saleable value of
the property of such Person is (I) greater than the total amount of
liabilities (including contingent liabilities) of such Person and (II) 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 other
than a Commercial Letter of Credit.

“Standby 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 Standby Letters
of Credit then outstanding plus (ii) the aggregate amount of all
drawings under Standby 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.

“Stock Repurchase” means a repurchase by Holdings of its
Capital Stock pursuant to and in accordance with the terms of a stock
repurchase program authorized by the Governing Body (or a committee thereof) of
Holdings.

“Subject Lender” has the meaning assigned to that term in
subsection 2.10.

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

“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.

 33
 

“Subsidiary” or “Subsidiaries”
means, with respect to any Person, any corporation, general partnership,
limited partnership, limited liability 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 Domestic Subsidiary of
Company that has (or should have) executed and delivered a counterpart of the
Guaranty on the Closing Date or that executes and delivers (or should have
executed and delivered) a counterpart thereof from time to time thereafter
pursuant to subsection 6.8.

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

“Swap Agreement” means any agreement with respect to any
swap, forward, future or derivative transaction or option or similar agreement
involving, or settled by reference to, one or more rates, currencies,
commodities, equity or debt instruments or securities, or economic, financial
or pricing indices or measures of economic, financial or pricing risk or value
or any similar transaction or any combination of these transactions; provided
that no phantom stock or other employee benefit plan providing for payments
only on account of services provided by current or former directors, officers,
employees or consultants of Holdings, Company or any of their Subsidiaries
shall be a Swap Agreement.

“Swap Counterparties” means, in respect of any Lender Swap
Agreement, Bank of America, N.A. and any of its Affiliates.

“Swap Termination Value” means, in respect of any one or more
Lender Swap Agreements, after taking into account the effect of any legally
enforceable netting agreement relating to such Lender Swap Agreements,
(i) for any date on or after the date the swaps governed by such Lender
Swap Agreements have been closed out and termination value(s) determined in
accordance therewith, such termination value(s), and (ii) for any date
prior to the date referenced in clause (i), the amounts(s) determined as the
mark-to-market values(s) for the swaps governed by such Lender Swap Agreements,
as determined based upon one or more mid-market or other readily available
quotations provided by any recognized dealer in such swaps.

“Swing Line Lender” means Bank of America, N.A., 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 Loan Margin” means the margin over the Base Rate
used in determining the rate of interest of Swing Line Loans pursuant to
subsection 2.2A, as said margin is set forth and described on Schedule 2.2
annexed hereto.

 34
 

“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.

“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.

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

“Term Loan Exposure” means, with respect to any Lender, as of
any date of determination (i) prior to the funding of the Closing Date
Term Loans, the amount of that Lender’s Term Loan Commitment, and
(ii) after the funding of the Closing Date Term Loans, the aggregate
outstanding principal amount of the Closing Date Term Loans and Incremental
Term Loans of that Lender.

“Term Loan Maturity Date” means June 15, 2014.

“Term Loans” means the Closing Date Term Loans and the
Incremental Term Loans.

“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 at said date of determination plus
(ii) the aggregate principal amount of all outstanding Swing Line Loans at
said date of determination plus (iii) the Letter of Credit Usage at
said date of determination.

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

 35
 

“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.

“US Lender” means any Lender except a Non-US Lender.

“Wholly Owned Subsidiary” of any Person means a Subsidiary of
such Person, all of the outstanding Capital Stock of which (other than directors’
qualifying shares or nominee or other similar shares (including shares issued
to foreign nationals) required pursuant to applicable law) are owned by such
Person or another Wholly Owned Subsidiary of such Person.

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 (x) of subsection 6.1 shall be prepared in accordance
with GAAP as in effect at the time of such preparation.  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 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.

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
non-limiting language (such as “without limitation” or “but not limited to” or
words of similar import) is used with reference thereto, but rather shall be 

 36
 

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.

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 as follows:

(i)            Term Loans.

(a)           Closing Date Term
Loans.  Each Lender that has a
Closing Date Term Loan Commitment severally agrees to lend to Company on the
Closing Date, Closing Date Term Loans in an aggregate principal equal to such
Lender’s Closing Date Term Loan Commitment. 
The amount of each Lender’s Closing Date Term Loan Commitment as of the
Closing Date is set forth on Schedule 2.1 annexed hereto, and the
aggregate principal amount of the Closing Date Term Loan Commitments is
$100,000,000.00; provided that the amount of the Closing Date Term Loan
Commitment of each Lender shall be adjusted to give effect to any assignment of
such Closing Date Term Loan Commitment pursuant to subsection 10.1B.  Amounts borrowed under this subsection
2.1A(i)(a) and subsequently repaid or prepaid may not be reborrowed.

(b)           Incremental Term
Loans.  Each Lender of Term Loans
severally agrees to consider lending to Company on one or more dates prior to
the Term Loan Maturity Date Incremental Term Loans in an aggregate principal
amount equal to such Lender’s Pro Rata Share of $75,000,000; provided
that NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT TO THE CONTRARY, NO LENDER SHALL BE OBLIGATED UNDER ANY CIRCUMSTANCES
TO MAKE AN INCREMENTAL TERM LOAN HEREUNDER OTHER THAN IN SUCH LENDER’S SOLE AND
ABSOLUTE DISCRETION; provided, further, that (I) if,
following the delivery by Company of a Notice of Interest pursuant to
subsection 2.1B, any Lender shall decline to lend to Company an Incremental
Term Loan in a principal amount equal to such Lender’s Pro Rata Share of the
requested Incremental Term Loans, and Company has obtained a commitment from an
Eligible Assignee to assume such declining Lender’s obligations hereunder in
respect of such declined portion of such requested Incremental Term Loan, then
Company may require such declining Lender to assign to such Eligible Assignee
such declining Lender’s obligations hereunder in respect of such 

 37
 

declined
portion of such requested Incremental Term Loan pursuant to the provisions of
subsection 10.1B, (II) the pricing, fees and other terms in respect of
Incremental Term Loans borrowed by Company after the 6-month anniversary of the
Closing Date (it being understood that on or prior to the 6-month anniversary
of the Closing Date such pricing, fees and terms shall be governed by this
Agreement) shall be subject to the further agreement of Company and the Lenders
of said Incremental Term Loans (including any such Eligible Assignees), provided
that the agreement of any such declining Lenders shall not be required under
this clause (II) if such Incremental Term Loans (A) have a final maturity
date on or after the Term Loan Maturity Date and (B) have a weighted
average life not less than the then-current weighted average life of the
outstanding Closing Date Term Loans and (III) if Company and such Lenders
agree to the terms of any such Incremental Term Loans to be borrowed after the
6-month anniversary of the Closing Date, Company, Administrative Agent and the
Lenders shall enter into an amendment to this Agreement, in form, scope and
substance reasonably satisfactory to each of them, to provide for such
terms.  Amounts borrowed under this
subsection 2.1A(i)(b) 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 Closing Date to but
excluding the Revolving Loan Commitment Termination Date an aggregate principal
amount of Revolving Loans 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 Closing Date is set
forth on Schedule 2.1 annexed hereto, and the Revolving Loan Commitment
Amount as of the Closing Date is $50,000,000.00; 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 automatically on the Revolving Loan Commitment
Termination Date, and all Revolving Loans, accrued unpaid interest, fees,
costs, and other expenses and 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, in
no event shall (a) the Total Utilization of Revolving Loan Commitments at any
time exceed the lesser of (I) the Revolving Loan Commitment Amount then in
effect and (II) the Borrowing Base then in effect or (b) the sum of (I) the Pro
Rata Share of any Revolving Lender of the aggregate principal amount of all
then outstanding Revolving Loans plus (II) the aggregate amount of all
participations purchased by such Revolving Lender in Letters of Credit then
issued and outstanding plus (III) the aggregate amount of all risk
participations purchased by such Revolving Lender in Swing Line Loans then outstanding
would exceed such Lender’s Revolving Credit Commitment.

 38
 

(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, in reliance upon the agreements of the other
Revolving Lenders set forth and contained in this Section 2.1A(iii), to make a
portion of the Revolving Loan Commitments available to Company from time to
time during the period from the Closing 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 Closing Date is $10,000,000.00; 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.  Immediately upon the Funding Date with
respect to any Swing Line Loan, each Revolving Lender shall be deemed to, and
hereby irrevocably and unconditionally agrees to, purchase from Swing Line
Lender a risk participation in such Swing Line Loan in an amount equal to the
product of such Revolving Lender’s Pro Rata Share times the amount of
such Swing Line Loan, all as more fully described and detailed in subsection
2.1A(iii)(c) below.  The Swing
Line Loan Commitment shall expire automatically 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 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 

 39
 

notwithstanding,
(I) 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 (II) 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 Risk
Participations.  Immediately on the
Funding Date of each Swing Line Loan, each Revolving Lender shall be deemed to,
and hereby agrees to, purchase a risk participation in such Swing Line Loan in
an amount equal to its Pro Rata Share of such Swing Line Loan.  If for any reason (I) 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 (II) the
Revolving Loan Commitments are terminated at a time when such Swing Line Loan
is outstanding, then the Swing Line
Lender’s notice requesting Revolving Lenders to make Revolving Loans in
respect of said Swing Line Loan described in subsection 2.1A(iii)(b) above shall be deemed to be a request by Swing Line
Lender that each of the Revolving Lenders fund its risk participation in the
relevant Swing Line Loan.  At such time,
each Revolving Lender shall fund the purchase of such risk participation in an
amount equal to its Pro Rata Share (calculated, in the case of the foregoing
clause (II), immediately prior to such termination of the Revolving Loan
Commitments) of the unpaid amount of such Swing Line Loan, together with
accrued interest thereon and shall deliver to Swing Line Lender such amount in
same day funds at the Funding and Payment Office.  In order to further evidence such risk
participation (and without prejudice to the effectiveness of the risk
participation provisions set forth above), each Revolving Lender agrees to
enter into an Assignment and Assumption 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 

 40
 

to Swing Line
Lender any amount as provided in this subsection 2.1A(iii)(c), Swing Line
Lender (acting
through Administrative Agent), shall be entitled to recover, on demand, such
amount with interest thereon for the period from the date such payment is
required to the date on which such payment is immediately available to Swing
Line Lender at a rate per annum equal to the greater of (x) the Federal Funds
Effective Rate and (y) a rate determined by Swing Line Lender in accordance
with banking industry rules on interbank compensation, plus any
administrative, processing or similar fees customarily charged by Swing Line
Lender in connection with the foregoing. 
A certificate of Swing Line Lender submitted to any Revolving Lender
(through Administrative Agent) with respect to any amounts owing hereunder
shall be conclusive absent manifest error.  In the event Swing Line Lender receives a
payment of any amount with respect to which other Revolving Lenders have funded
the purchase of risk participations as provided in this subsection 2.1A(iii)(c),
Swing Line Lender shall promptly distribute to each such other Revolving Lender
its Pro Rata Share of such payment.  If any payment received by Swing Line Lender
in respect of principal or interest on any Swing Line Loan is required to be
returned by Swing Line Lender under any of the circumstances described in
subsection 10.11 (including pursuant to any settlement entered into by Swing
Line Lender in its discretion), each Revolving Lender shall pay to Swing Line
Lender its Pro Rata Share thereof on demand of Administrative Agent, plus
interest thereon from the date of such demand to the date such amount is
returned, at a rate per annum equal to the Federal Funds Effective Rate.  Administrative Agent shall make such demand
upon the request of Swing Line Lender. 
The obligations of Lenders under this subsection 2.1A(iii)(c) shall
survive the payment in full of the Obligations and the termination of this
Agreement.

(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 a risk participation in each Swing Line Loan pursuant to the
immediately preceding paragraph shall be absolute and unconditional and shall
not be affected by any circumstance, including (I) any set-off,
counterclaim, recoupment, defense or other right which such Revolving Lender
may have against Swing Line Lender, Company or any other Person for any reason
whatsoever; (II) the occurrence or continuation of an Event of Default or
a Potential Event of Default; (III) any adverse change in the business,
operations, liabilities, properties, assets or financial condition of Company
or any of its Subsidiaries; (IV) any breach of this Agreement or any other
Loan Document by any party thereto; or (V) 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 conditions
set forth and described in Section 4 being complied with or waived in
accordance with subsection 10.6.

(e)           Interest for Account of Swing Line Lender. 
Swing Line Lender shall be responsible for invoicing Company for
interest on the Swing Line Loans.  

 41
 

Until each Revolving Lender
funds its Refunded Swing Line Loans or risk participation pursuant to this
subsection 2.1A(iii) to refinance such Revolving Lender’s Pro Rata Share of any
Swing Line Loan, interest in respect of such Pro Rata Share shall be solely for
the account of Swing Line Lender.

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

B.            Borrowing Mechanics.  Loans made on any Funding Date (other than
Incremental Term Loans, 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 $500,000.00 and multiples of $100,000.00 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 $2,500,000.00 and multiples of $250,000.00 in
excess of that amount.  Incremental Term
Loans made on any Funding Date shall be in an aggregate minimum amount of
$25,000,000.00 and multiples of $5,000,000.00 in excess of that amount (or such
lesser aggregate amount or multiples as shall result in the aggregate principal
amount of all Incremental Term Loans made hereunder on and after the Closing
Date being equal to $75,000,000.00). 
Swing Line Loans made on any Funding Date shall be in an aggregate
minimum amount of $100,000.00 and multiples of $100,000.00 in excess of that
amount.  Whenever Company desires that
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); provided that
in the case of any such Notice of Borrowing in respect of Incremental Term
Loans, Company shall also deliver to Administrative Agent, at least 10 Business
Days in advance of the proposed Funding Date, written notice of its desire to
borrow such Incremental Term Loans (each, a “Notice
of Interest”), such Notice of Interest to specify the proposed
Funding Date and the aggregate amount of Incremental Term Loans Company desires
to be borrow on such proposed Funding Date. 
Whenever Company desires that Swing Line Lender make a Swing Line Loan,
it shall deliver to Administrative Agent and to Swing Line Lender a duly
executed Notice of Borrowing (Swing Line) no later than 11:00 A.M. (New York
City time) on the proposed Funding Date. 
Promptly after receipt by Swing
Line Lender of any telephonic Notice of Borrowing (Swing Line), Swing Line
Lender will confirm with Administrative Agent (by telephone or in writing) that
Administrative Agent has also received such Notice of Borrowing (Swing Line) in
respect of a Swing Line Loan and, if not, Swing Line Lender will notify
Administrative Agent (by telephone or in writing) of the contents thereof.  Unless the Swing Line Lender has received
notice (by telephone or in writing) from Administrative Agent (including at the
request of any Lender) prior to 12:00 P.M. (New York City time) on the Funding
Date of the proposed Swing Line Loan that one or more of the applicable
conditions specified in this Agreement is not then satisfied, then, subject to
the terms and conditions hereof, Swing Line Lender will make the amount of its
Swing Line Loan available to Company in accordance with the terms, conditions
and provisions of subsection 2.1C below. 
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 or Notice of Borrowing (Swing
Line), 

 42
 

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 or Notice of Borrowing (Swing Line), as the case may be, to
Administrative Agent on or before the applicable Funding Date.

Each Notice of Borrowing (whether
telephonic or written) shall specify (a) whether Company is requesting a
Loan, a conversion of Loans from one type to the other, or a continuation of
LIBOR Loans, (b) the requested Funding Date (which shall be a Business Day),
(c) the principal amount of Loans to be borrowed, converted or continued, (d)
the type of Loans to be borrowed or to which existing Loans are to be
converted, and (e) if applicable, the duration of the Interest Period with
respect thereto.  If Company fails to
specify a type of Loan in a Notice of Borrowing or if Company fails to give a
timely notice requesting a conversion or continuation, then the applicable
Loans shall be made as, or converted to, Base Rate Loans.  Any such automatic conversion to Base Rate
Loans shall be effective as of the last day of the Interest Period then in
effect with respect to the applicable LIBOR Loans.  If Company requests a borrowing of,
conversion to, or continuation of LIBOR Loans in any such Notice of Borrowing,
but fails to specify an Interest Period, it will be deemed to have specified an
Interest Period of one (1) month.

None of Administrative
Agent, Swing Line Lender or any other 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 or Notice of Borrowing (Swing Line) 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 or Notice of Borrowing (Swing
Line).

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.

Administrative Agent and
Lenders agree that Swing Line Lender may agree to modify the borrowing
procedures used in connection with Swing Line Loans in its discretion and
without affecting any of the obligations of Lenders hereunder other than
providing Administrative Agent with a Notice of Borrowing (Swing Line) in
respect of a Swing Line Loan.

 43
 

Notwithstanding anything
contained in this Agreement or any other Loan Document to the contrary, all
Loans made available to Company on the Closing Date shall be initially Base
Rate Loans.

If any Lender makes
available to Administrative Agent funds for any Loan to be made by such Lender
as provided in the foregoing provisions of this Section 2, and such funds are
not made available to Company by Administrative Agent because the conditions to
the applicable Loan set forth in Section 4 are not satisfied or waived in
accordance with the terms hereof, then Administrative Agent shall return such
funds (in like funds as received from such Lender) to such Lender within one
Business Day of the applicable requested Funding Date, without interest.

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

C.            Disbursement of Funds.  All Term Loans and Revolving Loans shall be
made by Lenders simultaneously and, except in the case of Incremental Term
Loans, proportionately to their respective Pro Rata Shares, it being understood
that none of Administrative Agent or any Lender shall be responsible for any
default by any other Lender in such 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 such other Lender’s obligation to
make a Loan requested hereunder. 
Promptly after receipt by Administrative Agent of a Notice of Borrowing
or Notice of Borrowing (Swing Line)
pursuant to subsection 2.1B (or telephonic notice in lieu thereof), or receipt
of advance written notice of an Incremental Term Loan pursuant to subsection 2.1B,
Administrative Agent shall notify each Lender for that type of Loan or Swing
Line Lender, as the case may be, of the proposed borrowing.  In the case of a Notice of Borrowing other
than in respect of Incremental Term Loans, 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.  In the
case of a Notice of Borrowing in respect of Incremental Term Loans, each Lender
of Term Loans (i) shall promptly notify Administrative Agent whether or
not such Lender intends to make such Incremental Term Loan, in an amount equal
to such Lender’s Pro Rata Share or in such other lesser amount as such Lender
shall advise to Administrative Agent, provided that should any Lender
elect not to make such Incremental Term Loan, or elect to make such Incremental
Term Loan in an amount less than such Lender’s Pro Rata Share, Administrative
Agent shall consult with the other Lenders of Term Loans to determine which, if
any, of such other Lenders of Term Loans are willing to increase the amount of
their respective Incremental Term Loans in order to cover such shortfall, and
(ii) if such Lender intends to make such Incremental Term Loan, such
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, in
same day funds in Dollars, at the Funding and Payment Office, IT BEING
UNDERSTOOD THAT NO LENDER SHALL BE OBLIGATED UNDER ANY CIRCUMSTANCES TO MAKE AN
INCREMENTAL TERM LOAN HEREUNDER OTHER 

 44
 

THAN IN SUCH LENDER’S SOLE AND ABSOLUTE DISCRETION.  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
Closing Date), 4.2 (in the case of all Loans) and 4.3 (in the case of
Incremental Term 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 (other
than a Funding Date in respect of an Incremental Term Loan) that such Lender
does not intend to make available to Administrative Agent the amount of such
Lender’s Loan (other than an Incremental Term Loan) requested on such Funding
Date, Administrative Agent may assume that such Lender will make 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 a rate per annum
equal to the greater of (x) the Federal Funds Effective Rate and (y) a rate
determined by Administrative Agent in accordance with banking industry rules on
interbank compensation, plus any administrative, processing or similar
fees customarily charged by Administrative Agent in connection with the
foregoing.  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.  Unless
Administrative Agent shall have been notified by any Lender prior to a Funding
Date in respect of an Incremental Term Loan that such Lender does intend to
make available to Administrative Agent the amount of such Lender’s Incremental
Term Loan requested on such Funding Date, Administrative Agent shall assume
that such Lender has not made and will not make such amount available to
Administrative Agent on such Funding Date, and Administrative Agent shall not
make available to Company a corresponding amount on such Funding Date.  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 Closing Date Term Loan Commitment, Revolving Loan
Commitment, Swing Line Loan Commitment, Closing Date Term Loan, Incremental
Term Loans, Revolving Loans and Swing Line Loans of 

 45
 

each Lender from time to time (the “Register”).  Company and 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 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.  Company shall execute and deliver to each
Lender on the Closing Date promissory notes to evidence such Lender’s Term
Loans, Revolving Loans and Swing Line Loans, substantially in the form of Exhibit
IV, Exhibit V or Exhibit VI annexed hereto, respectively,
with appropriate insertions.  If so
requested by any Lender (other than Lenders constituting such on the Closing
Date) by written notice to Company (with a copy to Administrative Agent),
Company shall execute and deliver to such Lender (and/or, if applicable and if
so specified in such notice, to any Person that is an assignee of such Lender
pursuant to subsection 10.1), promptly after Company’s receipt of such notice,
a promissory note or promissory notes to evidence such other Lender’s Term
Loans, 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
2.2E, 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 to Adjusted LIBOR.  Subject
to the provisions of subsections 2.2E and 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 the first paragraph 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 the first paragraph 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.

 46
 

(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:

(a)           if a Base Rate Loan, then
at the sum of the Base Rate plus the Base Rate Margin set forth for Term
Loans or Revolving Loans, as the case may be, in Schedule 2.2 annexed
hereto opposite the applicable Consolidated Leverage Ratio for the most recent
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 for Term Loans or
Revolving Loans, as the case may be, in Schedule 2.2 annexed hereto
opposite the applicable Consolidated Leverage Ratio for the most recent four
Fiscal Quarter period for which the applicable Pricing Certificate has been
delivered pursuant to subsection 6.1(iv);

provided that, until the first
delivery after the Closing Date of the Pricing Certificate by Company to
Administrative Agent pursuant to subsection 6.1(iv), the applicable margin for
Loans shall be that provided in Schedule 2.2 for a Consolidated Leverage
Ratio of greater than or equal to 1.50 to 1.00 and less than 2.00 to 1.00.

(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 first Business Day succeeding delivery of such Pricing Certificate,
the applicable margins shall be the maximum percentage amount for the relevant
Loan set forth in Schedule 2.2.

(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 Swing Line Loan Margin set forth in Schedule 2.2 annexed
hereto opposite the applicable Consolidated Leverage Ratio for the most recent
four Fiscal Quarter period for which the applicable Pricing Certificate has
been delivered pursuant to subsection 6.1(iv); provided that, until the
first delivery after the Closing Date of the Pricing Certificate by Company to
Administrative Agent pursuant to subsection 6.1(iv), the Swing Line Loan Margin
shall be that provided in Schedule 2.2 for a Consolidated Leverage Ratio
of greater than or equal to 1.50 to 1.00 and less than 2.00 to 1.00.

(iv)          If, as a result of any restatement of or other adjustment to the
financial statements of Holdings, Company or their Subsidiaries or for any
other reason, Company or the Lenders determine that (a) the Consolidated
Leverage Ratio as calculated by Company as of any applicable date was
inaccurate and (b) a proper calculation of such Consolidated Leverage Ratio
would have resulted in higher pricing for such period, 

 47
 

Company shall immediately
and retroactively be obligated to pay to Administrative Agent for the account
of the applicable Lenders or the Issuing Lender, promptly on demand by
Administrative Agent (or, after the occurrence of an actual or deemed entry of
an order for relief with respect to Company under the Bankruptcy Code,
automatically and without further action by Administrative Agent, any Lender or
Issuing Lender), an amount equal to the excess of the amount of interest and
fees that should have been paid for such period over the amount of interest and
fees actually paid for such period.  This
subsection 2.2A(iv) shall not limit the rights of Administrative Agent, any
Lender or Issuing Lender, as the case may be, under other subsections of this
Agreement.  Company’s obligations under
this subsection 2.2A(iv) shall survive the termination of the Revolving Loan
Commitments and the repayment of all other Obligations hereunder.

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)          there shall be no more
than ten (10) Interest Periods outstanding at any time; and

 48
 

(vii)         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
to or continue as a Base Rate Loan all or any part of its outstanding Term
Loans or Revolving Loans in a minimum amount of at least $500,000.00 and
multiples of $100,000.00 in excess of that amount; or (ii) to convert to
or continue as a LIBOR Loan all or any portion of such Term Loans or Revolving
Loans in a minimum amount of at least $2,500,000 and multiples of $250,000.00 in
excess of that amount; provided, however, that (a) a LIBOR Loan
may only be converted into a Base Rate Loan on the expiration of the Interest
Period applicable thereto and (b) a LIBOR Loan may only be continued as a LIBOR
Loan upon the expiration of the Interest Period applicable thereto.

Company shall deliver a
duly executed Notice of Conversion/Continuation to Administrative Agent no
later than 11:00 A.M. (New York City time) at least three Business Days in
advance of the proposed conversion date (in the case of a conversion to, or a
continuation of, a LIBOR Loan) or at least one Business Day in advance of the
proposed conversion date (in the case of a conversion to a Base Rate
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.  Except as otherwise provided herein, a LIBOR
Loan may be continued or converted only on the last day of the Interest Period
for such LIBOR Loan.

E.             Default Rate.  Upon the occurrence and during the
continuation of any Event of Default, 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 bear interest (including post-petition interest in any
proceeding under the Bankruptcy Code or other applicable bankruptcy laws)
automatically thereafter, 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
that are Revolving Loans); provided that, in the case of LIBOR Loans,
upon the expiration of any Interest Period in effect at the time any such
increase in interest rate is effective, all such LIBOR Loans shall thereupon
automatically 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 the applicable Base Rate Loans.  Payment or acceptance of the increased 

 49
 

rates of interest provided for in this subsection 2.2E is not a
permitted alternative to timely payment and shall not constitute a 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 the case of LIBOR Loans,
and on the basis of a 365-day or 366-day year, as applicable, in the case of
Base Rate Loans, 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 to the contrary, 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. 
If Administrative Agent or any
Lender shall receive interest in an amount that exceeds said maximum rate, the
excess interest shall be applied to the principal of the Loans or, if it
exceeds such unpaid principal, refunded to Company.  In determining whether the interest
contracted for, charged, or received by Administrative Agent or a Lender exceeds
said maximum rate, such Person may, to the extent permitted by applicable
Federal, state or local law, (i) characterize any payment that is not principal
as an expense, fee, or premium rather than interest, (ii) exclude voluntary
prepayments and the effects thereof, and (iii) amortize, prorate, allocate, and
spread in equal or unequal parts the total amount of interest throughout the
contemplated term of the Obligations hereunder.

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 the percentage per annum (the “Commitment Fee Percentage”) set forth in Schedule
2.2 opposite the applicable Consolidated Leverage Ratio for the most recent
four Fiscal Quarter period for which the applicable Pricing Certificate has
been delivered pursuant to subsection 6.1(iv); provided that, until the
first delivery after the Closing Date of the Pricing Certificate by Company to
Administrative Agent pursuant to subsection 6.1(iv), the Commitment Fee
Percentage shall be 0.20% per annum. 
Upon delivery of the Pricing Certificate by Company to Administrative
Agent pursuant to subsection 6.1(iv), the Commitment Fee Percentage 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

 50

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 first Business Day succeeding delivery
of such Pricing Certificate, the Commitment Fee Percentage shall be the maximum
percentage amount set forth in Schedule 2.2.  Such commitment fees shall 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 March, June, September and December, commencing with 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
and Sole Lead Arranger such fees in the amounts and at the times separately
agreed upon between Company and Administrative Agent or Sole Lead Arranger, as
the case may be.

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

A.            Scheduled Payments of
Term Loans.  Company shall make
principal payments on the Term Loans in installments on the last Business Day
of each Fiscal Quarter beginning on September 28, 2007 and continuing on the
last Business Day of each and every Fiscal Quarter thereafter (for so long as
any Term Loans shall remain outstanding) in an amount equal to the sum of
(i) $275,000.00 plus (ii) for each such last Business Day of a
Fiscal Quarter occurring after the making of any Incremental Term Loan, an
amount equal to 0.25% of the original principal amount of such Incremental Term
Loan; provided that the amount of each such scheduled installment of
principal of the Term Loans may be reduced in connection with any voluntary or
mandatory prepayments of the Term Loans in accordance with subsection 2.4B(iv);
provided, further, that the Term Loans, all accrued unpaid
interest, fees, costs and other expenses and 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, 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 1:00 P.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 $100,000.00. 
Company may, upon prior written or telephonic notice, in the case of
Base Rate Loans, and upon two Business Days’ prior written or telephonic
notice, in the case of LIBOR Loans, in each case given to Administrative Agent
by 11:00 A.M. (New York City time) on the date required and, if given by
telephone, promptly confirmed in writing to Administrative Agent, which 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 any Revolving Loans,
in each case on any Business Day, in whole or in part and in an aggregate
minimum amount of 

 51
 

$2,500,000.00
and multiples of $500,000.00 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 fee, 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 $10,000,000.00 and multiples of
$1,000,000.00 in excess of that amount. 
Company’s notice to Administrative Agent (which 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).  All fees accrued until the effective date of any termination of the Revolving
Loan Commitment Amount shall be paid on
the effective date of such termination.

(iii)          Mandatory Prepayments.  The Loans shall be prepaid (but, subject to
subsection 2.1A(ii), 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
third 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 (other than a sale of the Headquarters prior to the first anniversary of
the Closing Date, an issuance by any Loan Party of such Loan Party’s Capital
Stock, and Asset Sales made in reliance on clause (iii), (iv), (vi), (vii),
(viii), (ix), (xi), (xii), (xiii) or (xv) of subsection 7.7), Company shall
either (I) prepay Term Loans in an aggregate amount equal to such Net
Asset Sale Proceeds or (II), so long as no Event of Default shall have occurred
and be continuing, and to the extent that aggregate Net Asset Sale Proceeds
from any single transaction or related series of transactions do not exceed $10,000,000.00,
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 

 52
 

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.  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 Term
Loans in the full amount of all such Net Asset Sale Proceeds.

(b)           Prepayments from Net
Insurance/Condemnation Proceeds and from Certain Intellectual Property
Dispositions.  No later than the
fifth Business Day following the date of receipt (i) by Administrative Agent or
by Company or any of its Domestic Subsidiaries of any Net Insurance/Condemnation
Proceeds that are required to be applied to prepay Term Loans pursuant to the
provisions of subsection 6.4C, or (ii) by Company or any of its Subsidiaries of
any Net Asset Sale Proceeds from the exclusive licensing of Intellectual Property
that are required to be applied to prepay Term Loans pursuant to the provisions
of subsection 7.7(xi), Company shall prepay Term Loans in an aggregate amount
equal to the amount of such Net Insurance/Condemnation Proceeds or Net Asset
Sales Proceeds, as the case may be.

(c)           Prepayments Due to
Issuance of Capital Stock.  No later
than the third 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 (other than, in the case of any such
issuance of Capital Stock of a Domestic Subsidiary of Company, Net Securities
Proceeds from the issuance of such Capital Stock to a Loan Party) or from any
capital contribution to Holdings by any holder of Capital Stock thereof after
the Closing Date, Company shall prepay Term Loans in an aggregate amount equal
to 50% of such Net Securities Proceeds; provided, however, that
(I) such percentage of Net Securities Proceeds required to be applied to
the prepayment of Term Loans shall be reduced to 25% in respect of any such
prepayment 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(iv) is less than or
equal to 1.50 to 1.00, and (II) 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(iv) is less than or equal to 1.00 to
1.00.  Notwithstanding the foregoing
sentence to the contrary, Company shall not be required to prepay Term 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 or Capital
Stock that is Qualified Capital Stock (B) issuances of Capital Stock in
connection with an Employee Benefit Plan or other executive compensation
arrangement.

 53
 

(d)           Prepayments Due to
Issuance of Indebtedness.  No later
than the third 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 Term Loans in an
aggregate amount equal to such Net Securities Proceeds.

(e)           Calculations of Net
Proceeds Amounts; Additional Prepayments Based on Subsequent Calculations.  Concurrently with any prepayment of Term
Loans pursuant to subsections 2.4B(iii)(a)-(d), inclusive, 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, or Net Securities Proceeds, 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
Term 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.

(f)            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 limitation
set forth in the last sentence 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, 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), if not otherwise specified by Company in the
applicable notice of prepayment, shall be applied to reduce the remaining
scheduled installments of principal of the Term Loans (including the final installments
on the Term Loan Maturity Date) in the inverse order of their scheduled due
dates.

 54
 

(b)           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 and all 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 (including the final
installments on the Term Loan Maturity Date) in the inverse order of their
scheduled due dates.

(c)           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 if no Event of Default shall have occurred and be continuing on the
required prepayment date, 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 the earlier of
(I) expiration of such Interest Periods and (II) the occurrence of an
Event of Default.

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
12:00 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)(c) 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 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 

 55
 

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.

(v)           Payments by Company; Presumptions by
Administrative Agent.  Unless Administrative Agent shall have
received notice from Company prior to the date on which any payment is due to
Administrative Agent for the account of the Lenders or Issuing Lender hereunder
that Company will not make such payment, Administrative Agent may assume that
Company has made such payment on such date in accordance herewith and may, in
reliance upon such assumption, distribute to Lenders or Issuing Lender, as the
case may be, the amount due.  In such
event, if Company has not in fact made such payment, then each of Lenders or
Issuing Lender, as the case may be, severally agrees to repay to Administrative
Agent forthwith on demand the amount so distributed to such Lender or Issuing
Lender, in immediately available funds with interest thereon, for each day from
and including the date such amount is distributed to it to but excluding the
date of payment to Administrative Agent, at the greater of the Federal Funds
Effective Rate and a rate determined by Administrative Agent in accordance with
banking industry rules on interbank compensation.  A notice of Administrative Agent to any
Lender or Company with respect to any amount owing under this subsection
2.4C(v) shall be conclusive, absent manifest error.

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)            first, 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 

 56
 

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

(ii)           second, to the payment
of that portion of the Obligations constituting accrued and unpaid interest on
the Loans and fees in respect of any Letters of Credit issued, for the ratable
benefit of the holders thereof (subject to the provisions of subsection
2.4C(ii));

(iii)          third, to the payment of
that portion of the Obligations constituting unpaid principal of the Loans and
any Letters of Credit issued and Obligations under Lender Swap Agreements not
to exceed $4,000,000 in aggregate Swap Termination Value, for the ratable
benefit of the holders thereof (subject to the provisions of subsection
2.4C(ii));

(iv)          fourth, to the payment
of all other Obligations, including Obligations of Loan Parties under any
Lender Swap Agreements in excess of those described in subsection 2.4D(iii)
above, for the ratable benefit of the holders thereof (subject to the
provisions of subsection 2.4C(ii)); and

(v)           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 Closing Date Term Loans
shall be applied by Company to repay existing indebtedness and for working
capital and other general corporate purposes (including Permitted
Acquisitions).  The proceeds of the
Incremental Term Loans shall be applied by Company for Permitted Acquisitions,
capital expenditures, stock repurchases and working capital and other 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 for
working capital and other general corporate purposes.

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 could reasonably be expected to 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.

 57
 

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:

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), in each case enacted after the date of
this Agreement or, if later, the date on which such Lender became a Lender, or
(ii) has become impracticable, or would cause such Lender material
hardship, as a result of contingencies occurring after the date of this
Agreement or, if later, the date on which such Lender became a Lender, 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 (1) 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,
(2) 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, (3) the
Affected Lender’s obligation to maintain its outstanding LIBOR Loans (the 

 58
 

“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
(4) 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 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 2.9, 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 but excluding loss of margin) 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 without the consent of the Requisite Class
Lenders for the Class of such 

 59
 

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 or, if applicable, subsection 4.3, cannot then
be satisfied, to be rescinded by Company.

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, if later, the date on which
the affected Lender becomes a Lender, 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 2.9A, 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.  Failure or delay
on the part of any Lender to demand compensation pursuant to this subsection
2.7A shall not constitute a waiver of such Lender’s right to demand such
compensation; provided that Company shall not 

 60
 

be required to compensate a Lender pursuant to this
subsection 2.7A for any increased costs or reductions incurred more than 180
days prior to the date that such Lender notifies Company of the circumstances
giving rise to such increased costs or reductions and of such Lender’s
intention to claim compensation therefor; provided, further,
that, if the change in law or other circumstances giving rise to such increased
costs or reductions is retroactive, then the 180-day period referred to above
shall be extended to include the period of retroactive effect thereof.

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 Indemnified 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 Indemnified 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 Lender of such
deduction, withholding or payment and of the remittance thereof to the relevant
taxing or other authority;

 61
 

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 applicable to
such Lender, in each case after the later of the Closing Date and the date on
which such Lender became a Lender, shall result in the loss of any exemption
from, or an increase in the rate of, such deduction, withholding or payment
with respect to payments to such Lender, from any such requirement for a
deduction, withholding or payment in effect on the date on which such Lender
became a 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
Closing 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, W-8ECI or W-8EXP (or any successor forms, or any
applicable, analogous state, local or foreign 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 (I) a “bank” for purposes of Section 881(c) of the Internal
Revenue Code, (II) a ten-percent shareholder (within the meaning of
Section 871(h)(3)(B) of the Internal Revenue Code) of Company or Holdings or
(III) 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 eligible for a reduction in, or 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
hereby agrees, from time to time after the initial delivery by such Lender of
such forms, whenever so requested by Administrative Agent or Company as a
result of a lapse in time or change in circumstances rendering such forms,
certificates or other evidence so delivered obsolete or inaccurate in any
material respect, that such Lender shall promptly (I) 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 

 62
 

account with
respect to any portion of such payment or (II) notify Administrative Agent
and Company of its inability to deliver any such forms, certificates or other
evidence.

(c)           Company shall not be
required to pay any additional amount to any Non-US Lender under clause (c) of
subsection 2.7B(ii), (I) 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)(g)(II) or (II) if such Lender
shall have failed to satisfy the requirements of clause (a), (b)(I) or (g) 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)(c) 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 subsequent 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).

(d)           Each US Lender shall
deliver to Administrative Agent and to Company, on or prior to the Closing 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-9 (or any successor forms, or any applicable, analogous state,
local, or foreign forms) properly completed and duly executed by such Lender
certifying that such Lender is not subject to backup withholding prescribed by
Section 3406 of the Internal Revenue Code (or applicable analogous state,
local, or foreign law).

(e)           Each US Lender hereby
agrees, from time to time after the initial delivery by such Lender of the
forms required by subsection 2.7B(iii)(d), whenever so requested by
Administrative Agent or Company as a result of a lapse in time or change in
circumstances rendering such forms, certificates, or other evidence so
delivered obsolete or inaccurate in any material respect to deliver to
Administrative Agent and Company two original copies of renewals, amendments,
additional, or successor forms, properly completed and duly executed by such
Lender to confirm or establish that such Lender is not subject to backup
withholding with respect to payments to such Lender under the Loan Documents.

(f)            Company shall not be
required to pay any additional amount to any US Lender under subsection
2.7B(ii)(c) if such Lender shall have failed to satisfy the requirements of
clause (d) or (e) of this subsection 2.7B(iii), provided that if a
Lender shall have satisfied the requirements of subsection 2.7B(iii)(d) on the
date 

 63
 

such Lender
became a Lender, nothing in this subsection 2.7B(iii)(f) shall relieve Company
of its obligation to pay such amounts under 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, 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 backup withholding as
described in subsection 2.7B(iii)(d).

(g)           Each Non-US Lender and
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 (including, but not limited to, a typical
participation by such Lender), shall deliver to Administrative Agent and to
Company, on or prior to the Closing 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),
(I) two original copies of the forms or statements required to be provided
by such Lender under subsection 2.7B(iii)(a), if acting for the account of a
Non-US Lender and subsection 2.7B(iii)(d) if acting for the account of a US
Lender, properly completed and duly executed by the Lender on whose account
such Lender is acting to establish the portion of any such sums paid or payable
to such Lender on the account of another Lender that is not subject to United
States withholding tax or backup withholding, respectively and (II) two
original copies of Internal Revenue Service Form W-8IMY, if acting for the
account of a Non-US 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.

(iv)          Treatment of Certain
Refunds.  If the Administrative
Agent, or any Lender, determines that it has received a refund of any
Indemnified Taxes as to which the Loan Parties have paid additional amounts
pursuant to this subsection 2.7B, it shall pay to the Loan Parties an amount
equal to such refund (but only to the extent of additional amounts paid by the
Loan Parties under this subsection with respect to the Taxes giving rise to
such refund), net of all reasonable out-of-pocket expenses of such Lender or
Administrative Agent, as the case may be, and without interest (other than any
interest paid by the relevant Governmental Authority with respect to such
refund); provided that such Loan Party, upon the request of such Lender,
or Administrative Agent, as the case may be, agrees to repay the amount paid
over to the Loan Party to such Lender or Administrative Agent in the event the
such Lender or Administrative Agent is required to repay such refund to such
Governmental Authority and such Lender or Administrative Agent delivers to such
Loan Party proof of such required repayment.

 64
 

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 or, if later, the date on which such Lender became a Lender,
has or would have the effect of reducing the rate of return on the capital of
such Lender or any Person controlling such Lender as a consequence of, or with
reference to, such Lender’s Loans or Commitments or 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 Person 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 2.9A,
Company shall pay to such Lender such additional amount or amounts as will
compensate such Lender or such controlling Person on an after-tax basis for
such reduction.

2.8                               Tax
Treatment.

The parties will treat
any Base Rate Loan or LIBOR Loan as a “contingent payment debt instrument” as
defined in Treasury Regulation Section 1.1275-4.  For purposes of Section 1.1275-4(b)(4) of the
Treasury Regulations, the comparable yield of a Base Rate Loan will be the Base
Rate plus the Base Rate Margin as each is determined as of the date of issuance
of such Base Rate Loan (the “Issuance Base Rate”)
and the comparable yield of a LIBOR Loan will be the LIBOR plus the LIBOR
Margin as each is determined as of the date of issuance of such LIBOR Loan (the
“Issuance LIBOR Rate”). For this
purpose, the conversion of  a LIBOR Loan
into a Base Rate Loan or a Base Rate Loan into a LIBOR Loan shall not be
treated as a new issuance of a Loan. For purposes of Section 1.1275-4(b)(4) of
the Treasury Regulations, each interest payment on the projected payment
schedule will be assumed to equal the amount that would have been paid if the
Base Rate Loan or the LIBOR Loan was a fixed rate debt instrument that paid
interest on each Interest Payment Date at either the Issuance Base Rate or the
Issuance LIBOR Rate, as applicable.

2.9                               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 2.9B 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 

 65
 

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 2.9B 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.

2.10                        Replacement
of a Lender.

If Company receives a
statement of amounts due pursuant to subsection 2.9A 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 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) at any time when there are one or
two Lender Groups, if the Subject Lender is also Administrative Agent, the
Swing Line Lender or an Issuing Lender, the prior written approval of the
Requisite Lenders (determined without taking into account the Term Loan
Exposure or Revolving Loan Exposure of the Subject Lender) has been obtained by
Company (such approval not to be unreasonably withheld, delayed or conditioned,
it being understood that the failure of the Requisite Lenders to object to any
such action within 10 Business Days following delivery by Company to
Administrative Agent (for further transmittal to Lenders) of written notice of
the proposed assignee or assignees, shall be deemed to constitute irrevocable
and unconditional approval of such required assignment), 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, (1) 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 2.9B (if applicable)) through such
date of replacement and a release from its obligations under the Loan
Documents, (2) the processing fee required to be paid by subsection
10.1B(i) shall have been paid to Administrative Agent, (3) 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 

 66
 

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 (4) 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.

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 (or, if said 30th day is not a Business Day, the next preceding
Business Day), that one or more Issuing Lenders issue Letters of Credit payable
on a sight basis for the account of Company or a Subsidiary 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 Issuing 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 Issuing Lender issue (and no Issuing Lender
shall issue or be obligated to issue):

(i)            any Letter of Credit
if, after giving effect to such issuance, (a) the Total Utilization of
Revolving Loan Commitments would exceed the lesser of (1) the Revolving
Loan Commitment Amount then in effect and (2) the Borrowing Base then in
effect or (b) the sum of (1) the Pro Rata Share of any Revolving Lender of the
aggregate principal amount of all then outstanding Revolving Loans plus
(2) the aggregate amount of all participations purchased by such Revolving
Lender in Letters of Credit then issued and outstanding plus (3) the
aggregate amount of all risk participations purchased by such Revolving Lender
in Swing Line Loans then outstanding would exceed such Lender’s Revolving
Credit Commitment;

(ii)           any Letter of Credit
if, after giving effect to such issuance, the Letter of Credit Usage would
exceed $25,000,000.00;

(iii)          any Standby Letter of
Credit having an expiration date later than the earlier to occur of (a) 30
days prior to the Revolving Loan Commitment Termination Date (or, if such day is not a Business Day, the
next preceding Business Day) and (b) the date which is one year
from the date of issuance of such Standby Letter of Credit; provided
that, if Company
so requests in any applicable L/C Application (Standby), the Issuing Lender
may, in its sole and absolute discretion, agree to issue a Letter of Credit
that has automatic extension provisions (each, an “Auto-Extension
Letter of Credit”); provided that any such Auto-Extension Letter of
Credit must permit Issuing Lender to prevent any such extension at least once
in each twelve-month period (commencing with the date of issuance of such
Letter of Credit) by giving prior notice to Company and to 

 67
 

the
beneficiary thereof not later than a day (the “Non-Extension
Notice Date”) in each such twelve-month period to be agreed upon at
the time such Letter of Credit is issued. 
Unless otherwise directed by Issuing Lender, Company shall not be
required to make a specific request to Issuing Lender for any such
extension.  Once an Auto-Extension Letter
of Credit has been issued, the Revolving Lenders shall be deemed to have
authorized (but may not require) Issuing Lender to permit the extension of such
Letter of Credit at any time to an expiry date not later than the L/C
Expiration Date; provided, however, that Issuing Lender shall not permit
any such extension if (I) Issuing Lender has determined in good faith that it
would not be permitted, or would have no obligation, at such time to issue such
Letter of Credit in its revised form (as extended) under the terms hereof (by
reason of the provisions of this subsection 3.1A or otherwise), or (II) it has
received notice (which may be by telephone or in writing) on or before the day
that is five Business Days before the Non-Extension Notice Date from
Administrative Agent, any Revolving Lender or Company that one or more of the
applicable conditions specified in subsection 4.4 is not then satisfied (or has
not been waived in accordance with the terms, conditions and provisions of
subsection 10.6), and in each such case directing Issuing Lender not to permit
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
(I) the date which is 30 days prior to the Revolving Loan Commitment
Termination Date (or, if such day is
not a Business Day, the next preceding Business Day) and (II) 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;

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

(vii)         any Letter of Credit if any order, judgment or decree of any
Government Authority or arbitrator shall by its terms purport to enjoin or restrain
such Issuing Lender from issuing such Letter of Credit, or any Federal, state
or local law applicable to such Issuing Lender or any request or directive
(whether or not having the force of law) from any Government Authority with
jurisdiction over such Issuing Lender shall prohibit, or request that such
Issuing Lender refrain from, the issuance of letters of credit generally or
such Letter of Credit in particular or shall impose upon such Issuing Lender
with respect to such Letter of Credit any restriction, reserve or capital
requirement (for which such Issuing Lender is not otherwise compensated
hereunder) not in effect on the Closing Date or, if later, the date on which
such Issuing Lender became an Issuing Lender, or shall impose upon such Issuing
Lender any unreimbursed loss, cost or expense which was not applicable on the
Closing Date and which such Issuing Lender in good faith deems material to it;

(viii)        any Letter of Credit if the issuance of such Letter of Credit would
violate one or more policies of such Issuing Lender applicable to letters of
credit generally;

 68
 

(ix)           any Letter of Credit if, except as otherwise agreed by Administrative
Agent and such Issuing Lender, such Letter of Credit is in an initial stated
amount less than $20,000.00, in the case of a Commercial Letter of Credit, or
$100,000.00, in the case of a Standby Letter of Credit;

(x)            any Letter of Credit
if a
default of any Lender’s obligations to fund under subsection 3.3C exists,
unless such Issuing Lender has entered into reasonably satisfactory
arrangements with Company or such Lender to eliminate such Issuing Lender’s
risk with respect to such Lender; or

(xi)           any Letter of Credit
if, unless specifically provided for in
this Agreement, such Letter of Credit contains any provisions for automatic
reinstatement of the stated amount after any drawing thereunder.

No Issuing Lender shall
amend any Letter of Credit if such Issuing Lender would not be permitted at
such time to issue such Letter of Credit in its amended form under the terms
hereof.  No Issuing Lender shall be under
any obligation to amend any Letter of Credit if (1) such Issuing Lender would
have no obligation at such time to issue such Letter of Credit in its amended
form under the terms hereof, or (2) the beneficiary of such Letter of Credit
does not accept the proposed amendment to such Letter of Credit.

B.            Mechanics of Issuance.

(i)            Request for
Issuance or Amendment.  Whenever
Company desires the issuance or amendment of a Letter of Credit, it shall
deliver to Administrative Agent an L/C Application no later than 1:00 P.M. (New
York City time) at least two Business Days (in the case of Standby Letters of
Credit) or four 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 or
amendment, as applicable.  In the case of a request for an initial
issuance of a Letter of Credit, such L/C Application shall specify in form and
detail reasonably satisfactory to Issuing Lender: (a) the proposed issuance
date of the requested Letter of Credit (which shall be a Business Day); (b) the
amount thereof; (c) the expiry date thereof; (d) the name and address of the
beneficiary thereof; (e) the documents to be presented by such beneficiary in
case of any drawing thereunder; (f) the full text of any certificate to be
presented by such beneficiary in case of any drawing thereunder; (g) the
purpose and nature of the requested Letter of Credit; and (h) such other
matters as Issuing Lender may reasonably require.  In the case of a request for an amendment of
any outstanding Letter of Credit, such L/C Application shall specify in form
and detail satisfactory to Issuing Lender (w) the Letter of Credit to be
amended; (x) the proposed date of amendment thereof (which shall be a Business
Day); (y) the nature of the proposed amendment; and (z) such other matters as
Issuing Lender may require. 
Additionally, Company shall furnish to Issuing Lender and Administrative
Agent such other documents and information pertaining to such requested
Letter of Credit issuance or amendment, as Issuing Lender or Administrative
Agent may reasonably require.  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 L/C
Application.  In furtherance of the 

 69
 

provisions of
subsection 10.8, and not in limitation thereof, Company may submit an L/C
Application by telefacsimile and Administrative Agent and Issuing Lender may
rely and act upon any such L/C Application 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 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 L/C Application 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 L/C Application.

(ii)           Determination of
Issuing Lender.  Upon receipt by
Administrative Agent of an L/C Application 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 L/C
Application.  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.  Promptly after receipt of any L/C Application at the Funding and
Payment Office or, in the event Administrative Agent is not the Issuing Lender,
at the appropriate office of such Issuing Lender for receiving L/C Applications
and related correspondence, Issuing Lender will confirm with Administrative
Agent (by telephone or in writing) that Administrative Agent has received a copy
of such L/C Application from Company and, if not, Issuing Lender will provide
Administrative Agent with a copy thereof. 
Unless Issuing Lender has received written notice from any Revolving
Lender, Administrative Agent or any Loan Party, at least one 

 70
 

Business Day prior to the
requested date of issuance or amendment of the applicable Letter of Credit,
that one or more applicable conditions in subsection 4.4 shall not then be
satisfied (or waived in accordance with the terms, conditions and provisions of
subsection 10.6), then, subject to the terms and conditions hereof, Issuing
Lender shall, on the requested date, issue a Letter of Credit for the account
of Company or a Subsidiary of Company or enter into the applicable amendment,
as the case may be, in each case in accordance with Issuing Lender’s usual and
customary business practices. 
Immediately upon the issuance of each Letter of Credit, each Revolving
Lender shall be deemed to, and hereby irrevocably and unconditionally agrees
to, purchase from Issuing Lender a risk participation in such Letter of Credit
in an amount equal to the product of such Revolving Lender’s Pro Rata Share times
the maximum amount that is or at any time may become available to be drawn
thereunder.  Unless otherwise expressly agreed by Issuing
Lender and Company when a Letter of Credit is issued, (a) the rules of the ISP
shall apply to each Standby Letter of Credit, and (b) the rules of the Uniform
Customs and Practice for Documentary Credits, as most recently published by the
International Chamber of Commerce (the “ICC”)
at the time of issuance shall apply to each Commercial Letter of Credit.

(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.

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 fronting fee (a) with respect
to each Commercial Letter of Credit at a rate equal to 0.25% per annum,
computed on the stated amount of such Letter of Credit, and payable upon the
issuance thereof, (b) with respect to any amendment of a Commercial Letter of
Credit increasing the amount of such Letter of Credit, at a rate separately
agreed between Company and Issuing Lender, computed on the amount of such
increase, and payable upon the effectiveness of such amendment, and (c) with respect to each Standby Letter of Credit, at the rate per annum
specified in the Agent Fee Letter, computed on the daily amount available to be
drawn under such Letter of Credit (on the basis of a 360-day year for
the actual number of days elapsed) and
payable on a quarterly basis in arrears. 
Such fronting fee shall be due and payable on the tenth Business Day
after the end of each March, June, September and December, in respect of the most recently-ended quarterly period (or portion
thereof, in the case of the 

 71
 

first payment), commencing
with the first such date to occur after the issuance of such Letter of Credit,
on the date which is 30 days prior to the Revolving Loan Commitment
Termination Date (or, if such
day is not a Business Day, the next preceding Business Day) and thereafter on
demand; and

(ii)           with respect to each
Letter of Credit, a letter of credit fee
for the account of each Revolving Lender in accordance with its Pro Rata Share
for each Letter of Credit 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, such letter of
credit fee to be (a) due and payable on
the first Business Day after the end of each March, June, September and December, commencing with the first such date to
occur after the issuance of such Letter of Credit, on the date which is 30
days prior to the Revolving Loan Commitment Termination Date (or, if such day is not a Business Day, the
next preceding Business Day) and thereafter on demand and (b) computed on a
quarterly basis in arrears.  If there is
any change in the applicable LIBOR Margin for Revolving Loans during any quarter, the daily amount
available to be drawn under each Letter of Credit shall be computed and
multiplied by the applicable LIBOR Margin for Revolving Loans separately for each period during such
quarter that such LIBOR Margin for Revolving Loans was in effect; and

(iii)          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 clauses
(i) and (ii) above), the applicable Issuing Lender’s customary issuance,
presentation, amendment and other processing fees, and other standard costs and charges, of such Issuing Lender relating
to letters of credit as from time to time in effect, payable directly to
such 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.  Such individual customary fees
and standard costs and charges are due and payable on demand and are
nonrefundable.

For purposes of calculating any fees payable under
clauses (i) and (ii) 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.

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 

 72
 

Company shall reimburse such Issuing Lender not later than 11:00 A.M. (New York City time)
on the Business Day immediately following the date of any payment by such
Issuing Lender under a Letter of Credit (a “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 applicable Reimbursement Date 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 (and without regard to the minimum and multiples specified in
subsection 2.1B for the principal amount of Base Rate Loans), Revolving Lenders
shall, not later than 1:00 P.M. (New
York City time) 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.  In
such event, each Revolving Lender’s payment to Administrative Agent for the
account of such Issuing Lender pursuant to this subsection 3.3B shall be deemed
payment in respect of its participation in such Letter of Credit and shall
constitute an advance from such Revolving Lender in satisfaction of its
participation obligation under subsection 3.1C. 
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.  Any notice given by an Issuing Lender or Administrative Agent pursuant
to this subsection 3.3B may be given by telephone if immediately confirmed in
writing; provided that the lack of such an immediate confirmation shall
not affect the conclusiveness or binding effect of such notice.

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, which 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 Reimbursement Date or, in the event such Revolving Lender was not given
such notice by Administrative Agent until after such 

 73
 

time, 11:00
A.M. (New York City time) on the first Business Day after the date such
Revolving Lender 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 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 a rate per annum equal to the greater of
the Federal Funds Effective Rate and a rate determined by such Issuing Lender
in accordance with banking industry rules on interbank compensation, plus
any administrative, processing or similar fees customarily charged by the
Issuing Lender in connection with the foregoing.  A
certificate of Issuing Lender submitted to any Revolving Lender (through
Administrative Agent) with respect to any amounts owing hereunder shall be
conclusive absent manifest error.  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 and
non-appealable 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 in reimbursement of such payment under the Letter of
Credit (whether directly from Company or otherwise, including proceeds of any
cash collateral applied thereto by Administrative Agent), 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).

(iii)          Return of Payments.  If
any payment received by Issuing Lender or by Administrative Agent for the
account of Issuing Lender pursuant to this subsection 3.3C is required to be
returned under any of the circumstances described in subsection 10.11
(including pursuant to any settlement entered into by Issuing Lender in its
sole and absolute discretion), each Revolving Lender shall pay to
Administrative Agent for the account of Issuing Lender its Pro Rata Share
thereof on demand of Administrative Agent, plus interest thereon from the date
of such demand to the date such amount is returned by such Revolving Lender, at
a rate per annum equal to the Federal Funds Effective Rate from time to time in
effect.  The obligations of Revolving
Lenders under this subsection 

 74
 

3.3C(iii) shall survive the
payment in full of the Obligations and the termination of this Agreement.

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, 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).  Until
each Revolving Lender has paid all amounts payable by it under
subsection 3.3C(i) to reimburse Issuing
Lender for any amount drawn under any Letter of Credit, such Lender’s Pro Rata
Share of such interest shall be solely for the account of Issuing Lender.

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, this Agreement or any other Loan
Document;

 75

(ii)           the
existence of any claim,
counterclaim, setoff, 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, demand, certificate 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; or any loss or delay in the transmission or
otherwise of any document required in order to make a drawing under any Letter
of Credit;

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

(v)           any
adverse change in the 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,
including any other circumstance that might otherwise constitute a defense
available to, or a discharge of, Company or any Loan Party; 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 and non-appealable judgment of a court of competent
jurisdiction).

Company shall
promptly examine a copy of each Letter of Credit and each amendment thereto
that is delivered to it and, in the event of any claim of noncompliance with
Company’s instructions or other irregularity, Company will immediately notify
the applicable Issuing Lender.  Company
shall be conclusively deemed to have waived any such claim against Issuing
Lender and its correspondents unless such notice is given as aforesaid.

 76
 

3.5                               Nature
of Issuing Lenders’ Duties.

Each Revolving
Lender and Company agree that, in paying any drawing under a Letter of Credit,
Issuing Lender shall not have any responsibility to obtain any document (other
than any sight draft, certificates and documents expressly required by the
Letter of Credit) or to ascertain or inquire as to the validity or accuracy of
any such document or the authority of the Person executing or delivering any
such document.  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.  None of Issuing Lender,
Administrative Agent, any of their respective Affiliates, and their and their
respective Affiliates’ respective partners, directors, officers, employees,
agents and advisors or any correspondent, participant or assignee of Issuing
Lender shall be liable to any Revolving Lender for (a) any action taken or
omitted in connection herewith at the request or with the approval of the
Revolving Lenders or the Requisite Class Lenders, as applicable; (b) any action
taken or omitted in the absence of gross negligence or willful misconduct; or
(c) the due execution, effectiveness, validity or enforceability of any
document or instrument related to any Letter of Credit or related Loan
Document.  Company hereby assumes all
risks of the acts or omissions of any beneficiary or transferee with respect to
its use of any Letter of Credit; provided, however, that this
assumption is not intended to, and shall not, preclude Company’s pursuing such
rights and remedies as it may have against the beneficiary or transferee at law
or under any other agreement or otherwise. 
None of the Issuing Lenders, Administrative Agent, any of their
respective Affiliates, and their and their respective Affiliates’ respective
partners, directors, officers, employees, agents and advisors or any
correspondent, participant or assignee of Issuing Lender shall be liable or

 77
 

responsible for any of
the matters described in clauses (i) through (viii) of subsection 3.4; provided,
however, that anything in such clauses to the contrary notwithstanding,
Company may have a claim against Issuing Lender, and Issuing Lender may be
liable to Company, to the extent, but only to the extent, of any direct, as
opposed to consequential or exemplary, damages suffered by Company which
Company proves (as determined by a final and non-appealable judgment of a court
of competent jurisdiction) were caused by Issuing Lender’s willful misconduct
or gross negligence or Issuing Lender’s willful failure to pay under any Letter
of Credit after the presentation to it by the beneficiary of a sight draft and
certificate(s) strictly complying with the terms and conditions of a Letter of
Credit.  In furtherance and not in limitation of the
foregoing, Issuing Lender may accept documents that appear on their face to be
in order, without responsibility for further investigation, regardless of any
notice or information to the contrary, and Issuing Lender shall not be
responsible for the validity or sufficiency of any instrument transferring or
assigning or purporting to transfer or assign a Letter of Credit or the rights
or benefits thereunder or proceeds thereof, in whole or in part, which may
prove to be invalid or ineffective for any reason.

Issuing Lender
shall act on behalf of the Revolving Lenders with respect to any Letters of
Credit issued by it and the documents associated therewith, and Issuing Lender
shall have all of the benefits and immunities (I) provided to
Administrative Agent in Section 9 with respect to any acts taken or omissions
suffered by Issuing Lender in connection with Letters of Credit issued by it or
proposed to be issued by it and issuer documents pertaining to such Letters of
Credit as fully as if the term “Administrative Agent” as used in Section 9
included Issuing Lender with respect to such acts or omissions, and (II) as
additionally provided herein with respect to Issuing Lender.

3.6                               Additional
Letter of Credit Provisions.

A.            Conflict with Issuer
Documents.  In the event of any conflict between the
terms hereof and the terms of any L/C Application and any other document,
agreement and instrument entered into by an Issuing Lender and Company (or any
Subsidiary of Company) or in favor of an Issuing Lender and relating to such Letter
of Credit, the terms hereof shall govern and control.

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

C.            Letter of Credit Amounts.  Unless otherwise specified herein, the amount of a Letter of Credit at
any time shall be deemed to be the stated amount of such Letter of Credit in
effect at such time; provided, however, that with respect to any
Letter of Credit that, by its terms or the terms of any L/C Application or any
other document, agreement and instrument entered into by an Issuing Lender and
Company (or any Subsidiary of Company) or in favor of an Issuing Lender and
relating to such Letter of Credit, provides for one or more automatic increases
in the stated amount thereof, the amount of such Letter of Credit shall be
deemed to be

 78
 

the maximum stated amount of such Letter of
Credit after giving effect to all such increases, whether or not such maximum
stated amount is in effect at such time.

SECTION 4.         CONDITIONS
TO LOANS AND LETTERS OF CREDIT

4.1                               Conditions
to Effectiveness.

The effectiveness
of this Agreement and the obligations of Lenders to make the Term Loans to be
made on the date hereof 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 Closing 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 Closing
Date:

(i)            copies
of the Organizational Documents of such Person, certified by the Secretary of
State of its jurisdiction of incorporation or 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, together with a good standing
certificate from the Secretary of State of its jurisdiction of incorporation or
organization, each dated a recent date prior to the Closing 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 Closing 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;

(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 Closing Date); and

(v)           such
other documents as Administrative Agent or Lenders 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 Closing Date referred to in subsection 2.3.

 79
 

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; No Material Adverse Change.  Company shall have delivered to
Administrative Agent an Officer’s Certificate, in form and substance reasonably
satisfactory to Administrative Agent and Lenders, to the effect that
(i) the representations and warranties in Section 5 are true, correct and
complete in all material respects on and as of the Closing 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); provided that, if a
representation or warranty is qualified as to materiality, the applicable
materiality qualifier set forth above shall be disregarded with respect to such
representation or warranty for purposes of this condition; (ii) 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 Closing Date except as otherwise disclosed to
and agreed to in writing by Administrative Agent and Lenders; provided
that, if a covenant or condition is qualified as to materiality, the applicable
materiality qualifier set forth above shall be disregarded with respect to such
covenant or condition for purposes of this condition; and (iii) there
shall have occurred since December 30, 2006, no material adverse change in the
business, operations, liabilities, properties, assets or financial condition of
Holdings, Company and its Subsidiaries, taken as a whole.

E.             Financial Statements.  On or before the Closing Date, Lenders shall
have received from Company (i) a consolidated balance sheet of Holdings
and its Subsidiaries as at March 31, 2007, prepared in accordance with GAAP,
and (ii) projected financial statements consisting of consolidated balance
sheets and statements of income of Holdings and its Subsidiaries for Fiscal
Years 2007 through and including 2011 (it being understood that projections are
subject to significant uncertainties and contingencies, many of which are
beyond Company’s and Holdings’ control, and that no assurance can be given that
the projections will be realized).

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 Lenders, dated as of the Closing 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 or Lenders
may reasonably request (this Agreement constituting a written request by
Company to such counsel to deliver such opinions to Lenders).

 80
 

G.            Termination of Existing Credit
Documents. 
Administrative Agent and Lenders shall have received evidence
satisfactory to them of the termination of the Existing Credit Documents, the
repayment in full of all loans thereunder and the termination of all Liens
granted thereunder (or the delivery of a payoff letter providing for the
termination of such Liens, in form and substance reasonably satisfactory to the
Administrative Agent and Lenders).

H.            Evidence of Insurance.  Administrative Agent shall have received a
certificate from Company’s insurance broker or other evidence satisfactory to
it and to Lenders 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.

I.              Necessary Governmental
Authorizations and Consents; Expiration of Waiting Periods, Etc.  Except for exceptions to the following that,
individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect, 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
Closing 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.

J.             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 and Lenders shall be reasonably satisfactory in form and substance to
Administrative Agent and Lenders, and Administrative Agent and Lenders shall
have received all such counterpart originals or certified copies of such
documents as Administrative Agent and Lenders may reasonably request.

K.            Closing Date Mortgages and
Termination of Mortgages Securing Existing Credit Documents.  Administrative Agent shall have received from
Company and each applicable Domestic Subsidiary (i) fully executed and
notarized 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, ALTA mortgagee title insurance
policies assuring Administrative Agent that the applicable Closing Date
Mortgages, 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 and Lenders, all of the
foregoing in form and substance reasonably satisfactory to Administrative Agent
and Lenders.  Administrative Agent and
Lenders shall have received evidence satisfactory to them that the mortgages
securing the obligations under the Existing Credit Documents shall have been released.

 81
 

Without limiting the generality of the provisions of subsection 9.2C,
for purposes of determining compliance with the conditions specified in this
subsection 4.1, each Lender that has signed this Agreement shall be deemed to
have consented to, approved or accepted or to be satisfied with, each document
or other matter required thereunder to be consented to or approved by or
acceptable or satisfactory to a Lender unless Administrative Agent shall have
received notice from such Lender prior to the proposed Closing Date specifying
its objection thereto.

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 or Notice of
Borrowing (Swing Line), as the case may
be, 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 or
Notice of Borrowing (Swing
Line) that would constitute an Event of Default or a Potential Event of
Default; and

(iii)          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.            Except in
respect of Incremental Term Loans, 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(xii)) required to be
delivered hereunder.

4.3                               Conditions
to Incremental Term Loans.

The agreement, if
any, of each Lender of Incremental Term Loans to make its Incremental Term
Loans on each Funding Date is subject to the following further conditions
precedent:

 82
 

A.            On or
before such Funding Date, Company shall deliver to such Lenders (or to
Administrative Agent with sufficient originally executed copies, where
appropriate, for each Lender) the following with respect to Company, each,
unless otherwise noted, dated such Funding Date:

(i)            either
(a) copies of the Organizational Documents of Company, certified by the
Secretary of State of its jurisdiction of incorporation or organization or, if
such document is of a type that may not be so certified, certified by the
secretary or similar officer of Company or (b) a certificate of the
secretary of Company certifying that the Organizational Documents of Company
have not been amended since the Closing Date, together with a good standing
certificate from the Secretary of State of its jurisdiction of incorporation or
organization, each dated a recent date prior to such Funding Date;

(ii)           resolutions
of the Governing Body or sole stockholder of Company approving and authorizing
the borrowing of the Incremental Term Loans to be borrowed on such Funding
Date, certified as of such Funding Date by the secretary or similar officer of
Company as being in full force and effect without modification or amendment;

(iii)          signature
and incumbency certificates of the officers of Company executing the Loan
Documents, if any, to be delivered by Company on such Funding Date;

(iv)          executed
originals of the Loan Documents, if any, to be delivered by Company on such
Funding Date; and

(v)           such
other documents as Administrative Agent or Lenders may reasonably request.

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

C.            There shall
have occurred since December 30, 2006, no material adverse change in the
business, operations, liabilities, properties, assets or financial condition of
Holdings, Company and its Subsidiaries, taken as a whole.

4.4                               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.

 83
 

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 L/C Application (or a facsimile or .pdf 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(xii)) required to be
delivered hereunder.

SECTION 5.         COMPANY’S
AND HOLDINGS’ 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
Administrative Agent and each Lender:

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

A.            Organization and Powers.  Each of Holdings and Company is a corporation
duly organized, validly existing and in good standing under the laws of its
jurisdiction of incorporation or organization as specified in Schedule 5.1
annexed hereto.  Each of Holdings and
Company 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 to which it is a party and to carry
out the transactions contemplated thereby.

B.            Qualification and Good Standing.  Each of Holdings and Company 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 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.  As of the Closing Date, all of the
Subsidiaries of Holdings and their jurisdictions of organization are identified
in Schedule 5.1 annexed hereto. 
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 non-assessable.  Each of
the Subsidiaries of Holdings identified in Schedule 5.1 annexed hereto
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

 84
 

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 could not reasonably be expected
to result in a Material Adverse Effect. 
As of the Closing Date, Schedule 5.1 annexed hereto correctly
sets forth the ownership interest of Holdings and each of its Subsidiaries in
each of the Subsidiaries of Holdings identified therein, and said ownership
interests are owned free and clear of all Liens.

5.2                               Authorization
of Borrowing, etc.

A.            Authorization of Borrowing.  The execution, delivery and performance of
the Loan Documents have been duly authorized by all necessary corporate or
other organizational 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 to which they are parties and the
consummation of the transactions contemplated by the Loan Documents do not and
will not (i) violate any provision of any 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,
injunction, writ, 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 for such
approvals or consents which will be obtained on or before the Closing Date.

C.            Governmental Consents; Other
Consents. 
Except for such consents as are described on Schedule 5.2C
attached hereto, the execution, delivery and performance by, or enforcement
against, any Loan Parties of the Loan Documents to which they are parties and
the consummation of the transactions contemplated by the Loan Documents do not
and will not require any Governmental Authorization or consents of other
Persons, except such as have been obtained on or before the Closing Date and
which consents remain in full force and effect.

D.            Binding Obligation.  Each of the Loan Documents has been duly executed
and delivered by each Loan Party that is a party thereto and is the legally
valid and binding obligation of such Loan Party, enforceable against such Loan
Party in accordance with its respective terms, except as may be limited by
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

 85
 

reports (other than the
projected financial statements) were prepared in conformity with GAAP and
fairly present, in all material respects, the financial position (on a
consolidated basis) of the entities described in such financial statements as
at the respective dates thereof and the results of operations and cash flows
(on a consolidated basis) of the entities described therein for each of the
periods then ended, 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 Holdings nor any of its Subsidiaries has any Contingent
Obligation, contingent liability, 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 Holdings and its Subsidiaries, taken as a whole.

5.4                               No
Material Adverse Change.

Since December 30,
2006, no event, change or circumstance 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.  Holdings and its Subsidiaries have
(i) good record and marketable fee simple 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, 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, individually or in the aggregate, reasonably be
expected to result in a Material Adverse Effect.  Except as permitted by subsection 7.2 of this
Agreement, all such properties and assets are free and clear of Liens.

B.            Real Property.  As of the Closing 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
Holdings or any of its Subsidiaries as lessee. 
Except as specified in Schedule 5.5B annexed hereto, as of
the Closing Date, to the knowledge of the Loan Parties after due inquiry, each
lease agreement governing a property listed in clause (ii) of the immediately
preceding sentence is in full force and effect, and neither Holdings nor
Company has 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 Intellectual Property that is owned by
Holdings  or any of its
Subsidiaries on the Closing Date are described on Schedule 5.5C annexed
hereto.  As of the Closing Date, Holdings
and its Subsidiaries own or have the right to use, all Intellectual Property
used in the conduct of their respective businesses, except where the failure to
own or

 86
 

have such right to use in the
aggregate could not reasonably be expected to result in a Material Adverse
Effect.  To the Knowledge of Holdings 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 Holdings  know of any valid basis for any such claim, except for such
claims that in the aggregate could not reasonably be expected to result in a
Material Adverse Effect.  To the
Knowledge of Holdings, the use of such Intellectual Property by Holdings and its
Subsidiaries does not infringe on the rights of any Person 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, as of the Closing Date, all material Proceedings
(whether or not purportedly on behalf of Holdings or any of its Subsidiaries)
at law or in equity, or before or by any court, arbitrator or arbitration panel
or other Government Authority (excluding any Environmental Claims which are
covered under subsection 5.13) that are pending or, to the Knowledge of
Company, threatened against or affecting Holdings or any of its Subsidiaries or
any property of Holdings or any of its Subsidiaries.  Holdings and Company believe 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 Holdings nor any of its Subsidiaries
(i) is in violation of any applicable laws (excluding any Environmental Laws
which are covered under subsection 5.13) 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.

5.7                               Payment
of Taxes.

All material
Federal, state and other, if any, 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 Federal, state and other, if any, taxes
shown on such tax returns to be due and payable and all material assessments,
fees and other governmental charges (relating to Taxes) 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
except for those taxes, assessments, fees and other governmental charges
(relating to Taxes) that are being contested in good faith by appropriate
proceedings promptly instituted and diligently conducted and (i) as to which
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 any
such tax, assessment, fee or other governmental charge 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 tax, assessment,
charge or claim.  Except for tax
assessments described on Schedule 5.7 attached hereto, to the Knowledge
of Company there is no proposed tax assessment against Holdings or any of its
Subsidiaries in writing that is not being actively contested by Holdings or
such Subsidiary in good faith and by appropriate proceedings diligently
conducted and as to which such reserves or other appropriate provisions, if
any, as shall be required in conformity with GAAP, have been made or provided
therefor.

 87
 

5.8                               Performance
of Agreements.

Neither Holdings
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 Holdings
nor any of its Subsidiaries is subject to regulation under 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
Holdings 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 or drawing under each Letter of
Credit, 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.

5.11                        Employee
Benefit Plans.

A.            Except as
could not reasonably be expected to result in a Material Adverse Effect,
Holdings, 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, have occurred or are
reasonably expected to occur that individually or in the aggregate could
reasonably be expected to result in liabilities of Holdings or any of its
Subsidiaries in excess of $2,500,000.

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

 88
 

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 defends and
indemnifies Administrative Agent, Lenders and Issuing Lender against, and
agrees that it will hold Administrative Agent, Lenders and Issuing Lender
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 could
not, individually or in the aggregate, reasonably be expected to result in a
Material Adverse Effect:

(i)            neither
Holdings 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
Holdings 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 there have been no conditions, occurrences, or Releases that could
reasonably be expected to form the basis of an Environmental Claim against
Holdings or any of its Subsidiaries;

(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

(v)           Holdings
and its Subsidiaries are in compliance with all applicable Environmental Laws.

5.14                        Employee
Matters.

There is no strike
or work stoppage in existence or to the Knowledge of Company threatened
involving Holdings or any of its Subsidiaries that could reasonably be expected
to result in a Material Adverse Effect.

 89
 

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 Closing 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.

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 or in any other document,
certificate or written statement furnished to Administrative Agent or Lenders
by or on behalf of Holdings or any of its Subsidiaries for use in connection
with the transactions contemplated by this Agreement (other than projections,
pro forma financial statements and information of a general economic nature)
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

 90
 

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                        Foreign
Assets Control Regulations, Etc.

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, 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.  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).

5.19                        Compliance with Laws.

Each Loan Party
and each Subsidiary thereof is in compliance in all material respects with the
requirements of all Federal, state and local laws and all orders, writs,
injunctions and decrees applicable to it or to its properties, except in such
instances in which (i) such requirement of law or order, writ, injunction or
decree is being contested in good faith by appropriate proceedings diligently
conducted or (ii) the failure to comply therewith, either individually or in
the aggregate, could not reasonably be expected to have a Material Adverse
Effect.

5.20                        Taxpayer Identification Number.

As of the Closing
Date, Company’s true and correct U.S. taxpayer identification number is
66-0201882.

SECTION
6.         COMPANY’S AND HOLDINGS’
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 in cash of all of
the Loans and other Obligations (other than Unasserted Obligations) and the
cancellation or expiration of all Letters of Credit (or the issuance of “back-to-back”
letters of credit in respect thereof, having terms and conditions reasonably
satisfactory to the Issuing Lender), unless Requisite Lenders shall otherwise
give prior express written consent, Company and Holdings each shall perform,
and shall cause each of its Subsidiaries to perform, all covenants in this
Section 6.

 91
 

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 shall maintain at all times books and records pertaining to the
Collateral in such detail, form and scope as Administrative Agent or any Lender
shall reasonably require.  Company
will deliver to Administrative Agent and, at any time when there are one or two
Lender Groups, to Lenders:

(i)            Events
of Default, etc.: promptly upon any Key Officer of Company or Holdings
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
Holdings 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 (other than the last Fiscal Quarter of each Fiscal
Year), (a) the consolidated balance sheet of Holdings and its Subsidiaries
as at the end of such Fiscal Quarter and the related consolidated statements of
income and cash flows 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, setting forth in each case in comparative form the
corresponding figures for the corresponding periods of the previous Fiscal Year
or, in the case of consolidated balance sheets, the corresponding figures as of
the end of the preceding Fiscal Year, all in reasonable detail and certified by
the chief financial officer of Holdings that they fairly present, in all
material respects, the consolidated financial condition of Holdings and its
Subsidiaries, 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 (b) a
management’s discussion and analysis of the financial condition and results of
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 (it being understood that the delivery by Holdings of quarterly
reports on Form 10-Q of Holdings and its consolidated Subsidiaries shall
satisfy the requirements of this subsection 6.1(ii));

(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 balance sheet of Holdings
and its Subsidiaries as at the end of such Fiscal Year and the related
consolidated statements of income, stockholders’ equity and cash flows of
Holdings and its Subsidiaries for such Fiscal Year, setting forth in each case
in comparative form the corresponding figures for

 92
 

the previous Fiscal Year, all in reasonable
detail and certified by the chief financial officer of Holdings that they
fairly present, in all material respects, the financial condition of Holdings
and its Subsidiaries as at the dates indicated and the results of their
operations and their cash flows for the periods indicated, (b) a
management’s discussion and analysis of the financial condition and results of
operations of Holdings and its Subsidiaries for such Fiscal Year, and
(c) a report thereon of Holdings’ independent certified public accountants
of recognized national standing selected by Holdings and reasonably
satisfactory to Administrative Agent, which report shall be unqualified, shall
express no doubts, assumptions or qualifications concerning the ability of
Holdings and its Subsidiaries to continue as a going concern, and shall state
that such financial statements fairly present, in all material respects, the
consolidated financial position of Holdings and its Subsidiaries 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 financial
statements has been made in accordance with GAAP (it being understood that the
delivery by Holdings of annual reports on Form 10-K of Holdings and its
consolidated Subsidiaries shall satisfy the requirement of this subsection
6.1(iii));

(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)           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 (which statement may disclaim responsibility for legal
interpretations), (b) stating whether, in connection with their audit
examination, any condition or event that constitutes an Event of Default has
come to their

 93
 

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 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;

(vi)          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) if Holdings no longer is required to
file periodic reports and other information with the Securities and Exchange
Commission, 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;

(vii)         Litigation
or Other Proceedings: promptly upon any Officer of Company or Holdings, as
the case may be, obtaining knowledge of (a) 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 (b) any material development in any Proceeding that,
in any case:

(x)        if adversely determined, could
reasonably be expected to result in 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;

(viii)        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
liability to Company or any of its Subsidiaries in excess of $2,500,000 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

 94
 

thereto and, when known, any action taken or
threatened by the Internal Revenue Service, the Department of Labor or the PBGC
with respect thereto;

(ix)           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 liability to Company or any of its
Subsidiaries in excess of $2,500,000; 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;

(x)            Financial
Budgets: as soon as practicable and in any event within 90 days following
the beginning of each Fiscal Year, a consolidated annual financial budget for
such Fiscal Year (the “Financial Budget”
for such Fiscal Year), including a budgeted consolidated balance sheet and
budgeted consolidated statements of income and cash flows of Holdings and its
Subsidiaries for such Fiscal Year and for each Fiscal Quarter of such Fiscal
Year, together with a pro forma Compliance Certificate for such Fiscal
Year and for each Fiscal Quarter of such Fiscal Year;

(xi)           New
Subsidiaries: promptly upon (and in any event within five Business Days of)
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 such Subsidiary (it being understood
that such written notice shall be deemed to supplement Schedule 5.1
annexed hereto for all purposes of this Agreement);

(xii)          Borrowing
Base Certificates: as soon as available and in any event within 20 Business
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 (xii)
that is delivered to Administrative Agent shall be used in calculating the Borrowing
Base as of any date of determination; and

(xiii)         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.

Company hereby acknowledges
that (a) Administrative Agent will make available to Lenders and Issuing
Lender materials and/or information provided by or on behalf of Company
hereunder (collectively, “Company Materials”)
by posting Company Materials on IntraLinks or

 95
 

another similar electronic system (the “Platform”) and (b) certain of the Lenders (each, a “Public Lender”) may have personnel who do
not wish to receive material non-public information with respect to Company or
its Affiliates or the respective securities of any of the foregoing, and who
may be engaged in investment and other market-related activities with respect
to such Persons’ securities.  Company
hereby agrees that so long as Company is the issuer of any outstanding
debt or equity securities that are registered or issued pursuant to a private
offering (I) all Company
Materials that are to be made available to Public Lenders shall be clearly and
conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC”
shall appear prominently on the first page thereof; (II) by marking
Company Materials “PUBLIC,” Company shall be deemed to have authorized
Administrative Agent, Issuing Lender and the Lenders to treat such Company
Materials as not containing any material non-public information with respect to
Company or its securities for purposes of United States Federal and state
securities laws (provided, however, that to the extent such
Company Materials constitute Information, they shall be treated as set forth in
subsection 10.19); (III) all Company Materials marked “PUBLIC” are
permitted to be made available through a portion of the Platform designated “Public
Investor;” and (IV) Administrative Agent shall be entitled to treat any
Company Materials that are not marked “PUBLIC” as being suitable only for
posting on a portion of the Platform not designated “Public Investor.  Notwithstanding the foregoing to the contrary,
Company shall be under no obligation to mark any Company Materials “PUBLIC.”

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 and good standing in the jurisdiction of incorporation or
organization specified on Schedule 5.1 and all rights, privileges,
permits, licenses 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, privilege, permit,
license or franchise if the Governing Body of Holdings or such Subsidiary shall
determine that the 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 (i) to Holdings and
its Subsidiaries taken as a whole or (ii) 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 or levies imposed upon it or any of
its properties or assets or in respect of any of its income, businesses or
franchises, 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 unless non-payment
thereof would not have a Material Adverse Effect; 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

 96
 

Collateral, such proceedings
conclusively operate to stay the sale of any portion of the Collateral to
satisfy such tax, assessment, 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, maintain or cause to be maintained in good repair, working
order and condition, ordinary wear and tear excepted, all material properties
and equipment 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 as
Company shall determine is reasonable or necessary in the exercise of its good
faith commercial judgment. Company will, and will cause each of its
Subsidiaries to, use the standard of care typical in the industry in the
operation and maintenance of its properties and equipment.

B.            Insurance.  Company will maintain or cause to be
maintained, with financially sound and reputable insurance companies (not
Affiliates of any Loan Parties), such public liability insurance, third party
property damage insurance, business interruption/business income 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 compatible with the
following standards), 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 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 System.  Each such policy of insurance shall
(i) name Administrative Agent for the benefit of Lenders as an additional
insured thereunder as its interests may appear and (ii) in the case of
each business interruption/business income and casualty insurance policy,
contain a standard mortgagee and lender 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 subsection 6.4C.

C.            Application of Net Insurance/Condemnation
Proceeds.

(i)            Business
Interruption/Business Income Insurance. 
No later than the third Business Day following receipt by Company or any
of its Domestic Subsidiaries of any

 97
 

business interruption/business income
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)           Other
Net Insurance/Condemnation Proceeds. 
No later than the third 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/business
income insurance, 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
(I) 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 (II) 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
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)(I)
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.

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 and
independent contractors 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 corporate, operating, financial and
accounting records, and to discuss its and their affairs, finances and accounts
with its and their directors, officers and independent public accountants
(subject to reasonable requirements of confidentiality, including requirements
imposed by law, and provided that Company or Holdings may, if it so chooses, be
present at or participate in any such discussion, all at the sole cost and
expense of Company and Holdings).  To the
extent practicable and so long as no Event of Default has occurred and is
continuing, Administrative Agent agrees to use commercially reasonable efforts
to coordinate and otherwise to conduct such visits and inspections so as to
avoid creating unreasonable burdens upon management of Company and its
Subsidiaries.

 98
 

B.            Lender Meeting.  Company will, upon the request of
Administrative Agent or Requisite Lenders, participate in a meeting (which may
take the form of a videoconference or conference call) 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), non-compliance
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 written environmental
audits, investigations, analyses and reports in the possession of Company,
Holdings or any of their Subsidiaries (or counsel to any of the foregoing),
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 asserted against Holdings, Company or
any of their Subsidiaries and (b) any Release required to be reported by
Holdings, Company or any of their Subsidiaries under any applicable
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 by
Holdings, Company or any of their Subsidiaries 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 (I) any Release the existence of which could reasonably be
expected to result in one or more material Environmental Claims against
Holdings, Company or any of their Subsidiaries or (II) any Environmental
Claims against Holdings, Company or any of their Subsidiaries, in each case
which would reasonably be expected to result in a Material Adverse Effect.

(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
against Holdings, Company or any of their Subsidiaries which would reasonably
be expected to result in a Material Adverse Effect and (b) any Release
required to be reported by Holdings, Company or any of their Subsidiaries under
any Environmental Law to any Government Authority.

 99
 

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 to the extent Company, Holdings or any of their
respective Subsidiaries is required to do so 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 Closing Date.

A.            Execution of Guaranty and Personal
Property Collateral Documents.  In the event that any Person becomes a
Domestic Subsidiary of Company after the Closing 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 “first-tier” Foreign
Subsidiaries (and zero percent of the Capital Stock of Foreign Subsidiaries
that are not “first-tier” 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 (if any) 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 Closing 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 not more
than 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 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,

 100

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, 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 reasonably satisfactory in form and substance to Administrative Agent.

6.9                               Matters
Relating to Additional Real Property Collateral.

From and after the
Closing Date, in the event that (i) Company owns a fee interest in the
Headquarters at any time on or after the first anniversary of the Closing Date,
(ii) Company or any Domestic Subsidiary 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 (iii) at the time any Person becomes a Domestic Subsidiary, 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 lien holder, where Company and its Subsidiaries
have attempted in good faith, but are unable, to obtain such lessor’s or senior
lien holder’s consent (any such non-excluded Real Property Asset described in
the foregoing clauses (i) - (iii) being an “Additional
Mortgaged Property”), Company or such Domestic Subsidiary shall
deliver to Administrative Agent, as soon as practicable (and in any event
within 30 days) after such Person acquires such Additional Mortgaged Property
or becomes a Domestic Subsidiary, or on the first anniversary of the Closing
Date, in the case of the Headquarters, 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, Phase I environmental
site assessment 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.

6.10                        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 (excluding Deposit

 101
 

Accounts used solely for
payroll purposes) and Securities Accounts at any time to have a principal
balance in excess of $750,000 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 (other than in respect of Deposit
Accounts maintained with Administrative Agent), 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 covering such account.

6.11                        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 permitted
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.

6.12                        Collateral Records.

Company shall, and
shall cause each of its Domestic Subsidiaries to, execute and deliver promptly
to Administrative Agent, from time to time, solely for Administrative Agent’s
convenience in maintaining a record of the Collateral, such written statements
and schedules as Administrative Agent may reasonably require designating,
identifying or describing the Collateral. 
The failure by Company or any other Loan Party, however, to promptly
give Administrative Agent such statements or schedules shall not affect,
diminish, modify or otherwise limit the Liens on the Collateral granted
pursuant to the Collateral Documents.

SECTION 7.         COMPANY’S
AND HOLDINGS’ 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 (or the issuance of “back-to-back” letters
of credit in respect thereof, having terms and conditions reasonably
satisfactory to the Issuing Lender), 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.

 102
 

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
$25,000,000 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 $25,000,000 at any time outstanding;

(vii)         Indebtedness
outstanding on the Closing Date and listed on Schedule 7.1 annexed
hereto, and any refinancing, refunding, renewal or extension thereof; provided that (a) the amount of
such Indebtedness is not increased at the time of such refinancing, refunding,
renewal or extension except by an amount equal to a reasonable premium or other
reasonable amount paid, and fees and expenses reasonably incurred, in
connection with such refinancing and by an amount equal to any existing
commitments unutilized thereunder and (b) the terms relating to principal
amount, amortization, maturity, collateral (if any) and subordination (if any),
and other material terms taken as a whole, of any such refinancing, refunding,
renewing or extending Indebtedness, and of any agreement entered into and of
any instrument issued in connection therewith, are no less favorable in any
material respect to the Loan Parties or Lenders than the terms of any

 103
 

agreement or instrument governing the Indebtedness being refinanced,
refunded, renewed or extended and the interest rate applicable to any such
refinancing, refunding, renewing or extending Indebtedness does not exceed the
then applicable market interest rate;

(viii)        Indebtedness
(including, without limitation, Capital Lease Obligations) secured by Liens
permitted under clause (iv) of subsection 7.2A in an aggregate principal amount
not to exceed $2,500,000 at any one time outstanding; and

(ix)           Indebtedness
issued to insurance companies to finance insurance premiums payable to such
insurance companies in connection with insurance policies purchased by Company
or any of its Subsidiaries in the ordinary course of business.

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 (including Capital Stock of Subsidiaries) 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; provided  further,
that the aggregate principal amount of Indebtedness secured by such Liens shall
at no time exceed $25,000,000;

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

(iv)          Other
Liens securing Indebtedness or other obligations in an aggregate amount not to
exceed $2,500,000 at any time outstanding; and

 104
 

(v)           Exclusive
Licenses with respect to Intellectual Property granted to third parties in
accordance with subsection 7.7.

Notwithstanding
the foregoing, (1) 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
6.10 of the Security Agreement, and (2) Company shall not create, incur,
assume or permit to exist any Lien on or with respect to the Headquarters or
any income or profits therefrom (other than non-consensual Permitted
Encumbrances arising by operation of law).

B.            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,
(iii) any agreement evidencing Indebtedness secured by Liens permitted by
subsection 7.2A(ii), as to the assets securing such Indebtedness, (iv) any
agreements governing any purchase money Liens or Capital Lease Obligations
otherwise permitted hereby (in which case, any prohibition or limitation shall
only be effective against the assets financed thereby and the proceeds thereof),
(v) any agreements governing Indebtedness of any Foreign Subsidiary
permitted by subsection 7.1(v) (in which case, any such prohibition or
limitation shall only be effective against the assets of such Foreign
Subsidiary and its Subsidiaries), (vi) customary provisions in joint
venture agreements and similar agreements that restrict transfer of assets of,
or equity interests in, joint ventures, (vii) licenses or sublicenses by
Company and its Subsidiaries of Intellectual Property in the ordinary course of
business (in which case any prohibition or limitation shall only be effective
against the Intellectual Property subject thereto), (viii) prohibitions
and limitations in effect on the date hereof and listed on Schedule 7.2B,
(ix) prohibitions and limitations arising by operation of law,
(x) any agreement in effect at the time a Person becomes a Subsidiary of
Company, so long as such agreement was not entered into in connection with or
in contemplation of such Person becoming a Subsidiary of Company and
(xi) any prohibitions and limitations imposed by any amendments or
refinancings that are otherwise permitted by the Loan Documents, of
Indebtedness permitted under the Loan Documents (including, without limitation,
under this subsection 7.2B), so long as such prohibitions and limitations are
not more onerous on the Company or any of its Subsidiaries than those contained
in such Indebtedness prior to such amendment or refinancing.

C.            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

 105
 

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, (e) Permitted
Encumbrances, (f) customary net worth provisions contained in real
property leases entered into by Company or any of its Subsidiaries so long as
such net worth provisions could not reasonably be expected to impair materially
the ability of the Loan Parties to meet their ongoing obligations under this
Agreement or any of the other Loan Documents, (g) any restriction with
respect to Foreign Subsidiaries contained in the agreements governing
Indebtedness permitted by subsection 7.1(v), (h) with respect to clause
(iv) only, (I) agreements described in clauses (iv)-(viii) of
subsection 7.2B, to the extent set forth in such clauses and
(II) restrictions with respect to the transfer of any asset contained in
an agreement that has been entered into in connection with the disposition of
such asset permitted hereunder, (i) encumbrances and restrictions arising
by operation of law, (j) any agreement in effect at the time a Person
becomes a Subsidiary of Company, so long as such agreement was not entered into
in connection with or in contemplation of such Person becoming a Subsidiary of
Company and (k) any encumbrances or restrictions imposed by any amendments
or refinancings that are otherwise permitted by the Loan Documents, of
Indebtedness permitted under the Loan Documents (including, without limitation,
under this subsection 7.2C), so long as such encumbrances and restrictions are
not more onerous on the Company or any of its Subsidiaries than those contained
in such Indebtedness prior to such amendment or refinancing.

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;

(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, (c) Company and
Subsidiary Guarantors may make Investments of Foreign Intellectual Property in
Foreign Subsidiaries and (d) Foreign Subsidiaries of Company may make and
own Investments in other Foreign Subsidiaries of Company;

(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 on the
Closing Date (or contractually committed on the Closing Date to be made by
them) and described in Schedule 7.3 annexed hereto;

 106
 

(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 $75,000,000 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 (or such longer period
specified in subsection 6.9) 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, as applicable,
with respect to each such acquisition, (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, and (d) to the extent that such Investments have a
fair market value in excess of $25,000,000 in the aggregate, such Investments
shall only be made from the proceeds of Incremental Term Loans which proceeds
are applied to such Investments within 10 Business Days of the borrowing
thereof;

(vi)          Company
and its Subsidiaries may make additional Investments in their respective
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, (I) 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, (II) a security interest in all such intercompany
Indebtedness owed to Company or any Domestic Subsidiary shall have been granted
to Administrative Agent for the benefit of Lenders and (III) if such
intercompany Indebtedness is evidenced by a promissory note or other instrument
in favor of Company or any Domestic Subsidiary, 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;

 107
 

(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; and

(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.

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;

(iii)          Company
may become and remain liable with respect to Contingent Obligations under
(a) Lender Swap Agreements 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);

 108
 

(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 (i) Company may make Restricted Junior
Payments to Holdings (a) to the extent necessary to permit Holdings to
(I) pay the franchise fees or similar Taxes and fees required to maintain
its corporate existence, (II) discharge the consolidated (or a unitary or
combined state and local) Tax liabilities of Holdings and its Subsidiaries and
(III) pay Taxes which are not determined by reference to income, but which
are imposed on Holdings as a result of Holdings’ direct or indirect ownership
of the equity of the Company, in each case so long as Holdings applies the
amount of any such Restricted Junior Payment for such purpose, (b) 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
and (c) 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 (other than pursuant to a Stock
Repurchase) and (ii) Company may make Restricted Junior Payments to
Holdings to the extent necessary to permit one or more Stock Repurchases; provided
that (a) the aggregate amount of such Stock Repurchases shall not exceed
$25,000,000 in the aggregate for all such Stock Repurchases on or after the
Closing Date; (b) the Consolidated Leverage Ratio as at the last day of
the immediately preceding Fiscal Quarter, after giving effect to any such Stock
Repurchase and any other Stock Repurchases since the end of such Fiscal
Quarter, in each case, as though such Stock Repurchases had been made on the
last day of such Fiscal Quarter, is less than 3.50:1:00; and (c) after
giving effect to any such Stock Repurchase, the Revolving Loan Commitment then
in effect would exceed the Total Utilization of Revolving Loan Commitments by
not less than $25,000,000.

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 Closing Date of
(i) Consolidated

 109
 

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
-to- 1.00.

B.            Maximum Leverage Ratio.  Company shall not permit the Consolidated
Leverage Ratio as of the last day of any Fiscal Quarter ending on or after the
Closing Date to exceed 4.00 -to- 1.00.

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 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.

Neither Holdings
nor Company shall, nor shall either of them permit any of their respective
Subsidiaries to, alter the legal structure of Holdings, Company or any of their
respective 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, grant licenses in respect of, 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)            so
long as no Potential Event of Default or Event of Default exists or would
result therefrom, any Subsidiary of Company may be merged with or into Company
or any Subsidiary Guarantor that is a Wholly Owned Subsidiary, 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 Subsidiary
Guarantor that is a Wholly Owned

 110
 

Subsidiary; provided that, in the case
of such a merger, Company or such Subsidiary Guarantor shall be the continuing
or surviving Person;

(ii)           so
long as no Event of Default exists or would result therefrom, 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)          so
long as no Event of Default exists or would result therefrom, Company and its
Subsidiaries may sell or otherwise dispose of obsolete, worn out or surplus
property in the ordinary course of business;

(iv)          so
long as no Potential Event of Default or Event of Default exists or would
result therefrom, Company and its Subsidiaries may (a) dispose of the
Headquarters, (b) dispose of assets to Subsidiary Guarantors that are
Wholly Owned Subsidiaries, and (c) make other Asset Sales of assets having
an aggregate fair market value, for all such assets subject to Asset Sales in
any Fiscal Year, not in excess of the greater of (I) $10,000,000 or
(II) 5% of the fair market value of all assets of Company and its
Subsidiaries, as determined by Company in good faith as of the last day of the
most recently ended Fiscal Year; provided that, in the case of each of
the foregoing clauses (a) - (c), (x) the consideration received for
such assets shall be in an amount at least equal to the fair market value
thereof; (y) not less than 70% of the consideration received shall be
Cash; and (z) the proceeds of such Asset Sales shall be applied as and to
the extent required by subsection 2.4B(iii)(a) or subsection 2.4D; provided,
further, that the aggregate fair market value of all Intellectual
Property subject to Asset Sales shall not exceed $5,000,000 in any Fiscal Year;

(v)           so
long as no Event of Default exists or would result therefrom, (a) 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 and (b) Company and its Subsidiaries may sell receivables in the
ordinary course of business, on a non-recourse basis, and at a reasonable
discount, for the purpose of improving the collectibility thereof; provided
that the aggregate amount of receivables sold in reliance on this subclause (v)
in any Fiscal Year shall not exceed 5% of the receivables of Company and its
Subsidiaries as at the last day of the immediately preceding Fiscal Year;

(vi)          so
long as no Potential Event of Default or Event of Default exists or would
result therefrom, 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)         so
long as no Potential Event of Default or Event of Default exists or would
result therefrom, any Person (other than Company) may be merged with or into
any Subsidiary if the acquisition of the Capital Stock of such Person by such
Subsidiary

 111
 

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;

(viii)        so
long as no Event of Default exists or would result therefrom, Company and its
Subsidiaries may make Investments permitted under subsection 7.3;

(ix)           so
long as no Event of Default exists or would result therefrom, Company and its
Subsidiaries may sell inventory in the ordinary course of business;

(x)            so
long as no Event of Default exists or would result therefrom, the disposition
of cash or Cash Equivalents in the ordinary course of business;

(xi)           so
long as no Event of Default exists or would result therefrom, the license or
sub-license of Intellectual Property in the ordinary course of business; provided
that any such license which is exclusive (a) is not for a period of more
than 15 years and (b) does not provide for the payment of advances on
royalties (or any similar payments) in an aggregate amount, for all such
payments in respect of a particular exclusive license, exceeding $5,000,000
unless the Net Asset Sale Proceeds thereof are applied to the prepayment of
Term Loans pursuant to Section 2.4B(ii)(b);

(xii)          so
long as no Potential Event of Default or Event of Default exists or would
result therefrom, a disposition consisting of a sublease of real property,
which disposition does not result in the creation of any Lien other than Liens
described in clause (viii) of the definition of Permitted Encumbrances;

(xiii)         so
long as no Potential Event of Default or Event of Default exists or would
result therefrom, dispositions consisting of Restricted Junior Payments
permitted by subsection 7.5;

(xiv)        so
long as no Potential Event of Default or Event of Default exists or would
result therefrom, dispositions of assets pursuant to sale and lease back
transactions permitted pursuant to subsection 7.10; and

(xv)         so
long as no Potential Event of Default or Event of Default exists or would
result therefrom, Company and Subsidiary Guarantors may sell Foreign Intellectual
Property to Foreign Subsidiaries.

7.8                               Consolidated
Capital Expenditures.

Company shall not,
and shall not permit its Subsidiaries to, make or incur Consolidated Capital
Expenditures (excluding expenditures made or committed to be made within 30
Business Days of the making of an Incremental Term Loan and funded directly by
the proceeds of such Incremental Term Loan), in any Fiscal Year, in an
aggregate amount in excess of $10,000,000.00 (the “Maximum
Consolidated Capital Expenditures Amount”); 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

 112
 

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).  The
Maximum Consolidated Capital Expenditures Amount permitted to be made in
respect of any Fiscal Year shall be increased, after the consummation of any
Permitted Acquisition, in an amount equal to 110% of the average annual amount
of capital expenditures made by the Person or business so acquired, as shown in
the financial statements of such Person or business, during the two fiscal
years preceding such acquisition.

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 which are not such a holder or Affiliate; provided
that the foregoing restriction shall not apply to:

(i)            any
transaction between (a) Company and any Subsidiary Guarantor that is a
Wholly Owned Subsidiary or between any Subsidiary Guarantors that are Wholly
Owned Subsidiaries or (b) Subsidiaries each of which is a Foreign
Subsidiary;

(ii)           reasonable
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)          indemnification
payments to officers or directors of Company or any of its Subsidiaries;

(iv)          transactions
described on Schedule 7.9 annexed hereto;

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

(vi)          reasonable
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.

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

 113
 

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 (other than a lease of the Headquarters covering any period
of time after the 6-month anniversary of the Closing Date) if and to the extent
that Company or any of its Subsidiaries would be permitted to enter into, and
remain liable under, such lease, and such 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, 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                        Fiscal
Year.

Neither Company
nor Holdings shall change its Fiscal Year-end.

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
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 Business 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

 114
 

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 (other than clause (xii) thereof) or 6.2 or Section 7 of this Agreement; or

8.4                               Breach
of Warranty.

Any
representation, warranty, certification or other statement made by or on behalf
of Holdings, Company or any of their respective Subsidiaries in any Loan
Document or in any statement or certificate at any time given by or on behalf
of Holdings, Company or any of their respective Subsidiaries in writing pursuant
hereto or thereto or in connection herewith or therewith shall be false,
incorrect or misleading 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 to the reasonable satisfaction of the Requisite Lenders,
or waived, within 30 days after the earlier of (i) receipt by Company of
notice from Administrative Agent of such default or (ii) the first date
upon which any Key Officer of any Loan Party obtained Knowledge thereof; or

8.6                               Involuntary
Bankruptcy; Appointment of Receiver, etc.

(i)            A
court having jurisdiction 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, 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

 115
 

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 $2,500,000.00, 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

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

 116
 

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, and except to the extent that
such loss is covered by a lenders title insurance policy as to which the
insurer has been notified of such loss and does not deny coverage, and the
Administrative Agent shall be reasonably satisfied with the credit of such
insurer, provided that it shall not be an Event of Default under this
clause (ii) if, solely as a result of the occurrence of one or more of the
events described in this clause (ii), the Administrative Agent shall not have
or shall cease to have a legal, valid and perfected security interest, with the
priority required under the Collateral Documents, in Collateral with a fair
market value less than $250,000 in the aggregate, 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:

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

 117
 

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).  In
addition to the other rights and remedies afforded to Administrative Agent in
this Section 8, upon the occurrence of an Event of Default, Administrative
Agent, on behalf of the Lenders, at the direction of the Required Lenders, may
require that (I) Company Cash Collateralize the Letter of Credit Usage (in an
amount equal to the then outstanding amount thereof) and (II) exercise on
behalf of itself, Lenders and Issuing Lender all rights and remedies available
to it, Lenders and Issuing Lenders under the Loan Documents, at law or in
equity.

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.  Bank of America, N.A. is hereby appointed
Administrative Agent hereunder and under the other Loan Documents.  Each Lender and Issuing 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, Lenders and
Issuing 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 Issuing 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 Collateral Agent.  Administrative Agent shall also act as the “collateral
agent” under the Loan Documents, and each of the Lenders and Issuing Lender
hereby irrevocably appoints and authorizes Administrative Agent to act as the
agent of such Lender and Issuing Lender for purposes of acquiring, holding and
enforcing any and all Liens on Collateral granted by any of the Loan Parties to
secure any of the Obligations, together with such powers and discretion as are
reasonably incidental thereto.  In this
connection, Administrative Agent, as “collateral agent” and any co-agents,
sub-agents and attorneys-in-fact appointed by Administrative Agent pursuant to
subsection 9.2C or otherwise for purposes of holding or enforcing any Lien on
the Collateral (or any portion thereof) granted under the Collateral Documents,
or for exercising any rights and remedies thereunder at the direction of
Administrative Agent), shall be entitled to the benefits of all provisions of
this Section 9, as though such co-agents, sub-agents and attorneys-in-fact were
the “collateral agent” under the Loan Documents as if set forth in full herein
with respect thereto.

C.            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

 118
 

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 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.

D.            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 and Issuing Lender irrevocably
authorizes Administrative Agent to take such action on its 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,

 119
 

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
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, any Issuing
Lender, Holdings or Company.  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. 
Administrative Agent shall not be responsible to any Lender or any
Issuing 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 Administrative Agent to Lenders or Issuing
Lenders or by or on behalf of Company to Administrative Agent or any Lender or
any Issuing 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 Administrative Agent be required to ascertain or inquire as to (i) the
contents of any certificate, report or other document delivered hereunder or
thereunder or (ii) 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. 
Notwithstanding anything contained in this Agreement to the contrary,
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.  Administrative Agent
shall be deemed not to have knowledge of any Event of Default or Potential
Event of Default unless and until written notice describing such Event of
Default or Potential Event of Default is given to Administrative Agent by
Company, Holdings, any Lender or any Issuing Lender.  In
determining compliance with any condition hereunder to the making of a Loan, or
the issuance of a Letter of Credit, that by its terms must be fulfilled to the
satisfaction of a Lender or Issuing Lender, Administrative Agent may presume
that such condition is satisfactory to such Lender or Issuing Lender unless
Administrative Agent shall have received notice to the contrary from such
Lender or Issuing Lender prior to the making of such Loan or the issuance of
such Letter of Credit.  Administrative
Agent shall not, except as expressly set forth herein and in the other Loan
Documents, have any duty to disclose and shall not be liable for the failure to
disclose, any information relating to Holdings, Company or any of their
respective Subsidiaries that is communicated to or obtained by Administrative
Agent or any of its Affiliates in any capacity.

C.            Exculpatory Provisions.  Neither Administrative Agent nor Sole Lead
Arranger, nor any of their respective officers, directors, employees or agents
shall be liable to Lenders for any action taken or omitted by Administrative
Agent or Sole Lead Arranger under or in connection with any of the Loan
Documents except to the extent caused by such Administrative Agent’s or Sole
Lead Arranger’s, as the case may be, gross negligence or willful
misconduct.  Administrative Agent shall
be entitled to refrain from any act or the taking of any action

 120
 

(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 Administrative 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), Administrative 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 Administrative Agent shall not be required to take any action that, in its
opinion, may expose Administrative Agent to liability or that is contrary to
any Loan Document or applicable law. 
Without prejudice to the generality of the foregoing,
(i) Administrative Agent and Sole Lead Arranger each 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 any right of action whatsoever against
Administrative Agent as a result of Administrative 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.            Administrative Agent and Sole Lead
Arranger 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, Administrative Agent in its individual capacity as a Lender
hereunder.  With respect to its
participation in the Loans and the Letters of Credit, Administrative Agent and
Sole Lead Arranger each shall have the same rights and powers hereunder as any
other Lender and may exercise the same as though it was 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 Administrative Agent and Sole Lead Arranger each in its individual
capacity.  Administrative Agent, Sole
Lead Arranger and their respective Affiliates each may accept deposits from,
lend money to, act as the financial advisor or in any other advisory capacity
for, acquire equity interests in and generally engage in any kind of commercial
banking, investment banking, trust, financial advisory or other business with
Holdings, Company or any of their respective Affiliates as if it was 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 and Issuing Lender.

E.             Delegation of Duties.  Administrative Agent may perform any and all of its duties and exercise its rights and
powers hereunder or under any other Loan Document by or through any one or more
sub-agents appointed by Administrative Agent, and Administrative Agent
and any such sub-agent may perform any and all of its duties and exercise
its rights and powers by or through their respective Affiliates and their and
their Affiliates’ partners, directors, officers, employees, agents and
advisors; provided that no such delegation pursuant to this subsection
9.2E shall alter the obligations of Administrative Agent hereunder.  The exculpatory provisions of this Section 9
shall apply to any such sub-agent and to Administrative Agent, any

 121
 

such sub-agent and their respective
Affiliates and their and their Affiliates’ partners, directors, officers,
employees, agents and advisors, and shall apply to their respective activities
in connection with the syndication of the credit facilities provided for herein
as well as activities as Administrative Agent.

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.  Administrative
Agent and Sole Lead Arranger each shall not 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 Administrative Agent and Sole Lead Arranger each shall not have any duty or
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 defend, indemnify and
hold harmless Administrative Agent and Sole Lead Arranger and their respective
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 Administrative Agent) or disbursements of any kind or nature whatsoever
which may be imposed on, incurred by or asserted against Administrative Agent,
Sole Lead Arranger or such other Person in exercising their respective powers,
rights and remedies or performing their respective duties hereunder or under
the other Loan Documents or otherwise 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 Administrative Agent, Sole Lead Arranger or such other Person resulting
solely from their respective gross negligence or willful misconduct as
determined by a final and non-appealable judgment of a court of competent
jurisdiction.  If any indemnity furnished
to Administrative Agent, Sole Lead Arranger or any other such Person for any
purpose shall, in the opinion thereof, be insufficient or become impaired,
Administrative Agent, Sole Lead Arranger or such other Person 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 Administrative Agent; Successor Administrative Agent, Swing Line Lender and
Issuing Lender.

A.            Resignation; Successor
Administrative Agent. 
Administrative Agent may resign at any time by giving 30 days’ prior
written notice thereof to Lenders, Issuing Lender and

 122
 

Company.  Upon any such notice of resignation by
Administrative Agent, Requisite Lenders shall have the right, upon five
Business Days’ notice to (and, so long as no Event of Default shall have
occurred and be continuing, consultation with) 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
Administrative 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 Administrative 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
Bank of America, N.A. 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. Upon the acceptance of a successor’s appointment as Administrative
Agent hereunder, (a) such successor shall succeed to and become vested with all
of the rights, powers, privileges and duties of the retiring Swing Line Lender,
and (b) the retiring Swing Line Lender shall be discharged from all of its
duties and obligations hereunder or under the other Loan Documents.

C.            Successor Issuing Lender.  Any resignation of Administrative Agent
pursuant to subsection 9.5A shall also constitute the resignation or removal of
Bank of America, N.A. or its successor as Issuing Lender, and any successor
Administrative Agent appointed pursuant to subsection 9.5A shall, upon its
acceptance of such appointment, become the successor Issuing Lender for all
purposes hereunder.  Upon the
acceptance of a successor’s appointment as

 123
 

Administrative
Agent hereunder, (a) such successor shall succeed to and become vested with all
of the rights, powers, privileges and duties of the retiring Issuing Lender,
(b) the retiring Issuing Lender shall be discharged from all of its duties and
obligations hereunder or under the other Loan Documents, and (c) the successor
Issuing Lender shall issue letters of credit in substitution for the Letters of
Credit, if any, outstanding at the time of such succession or make other
arrangements satisfactory to the retiring Issuing Lender to effectively assume
the obligations of the retiring Issuing Lender with respect to such Letters of
Credit.

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 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,
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 (I) 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, (II) that is
permitted to secure other Indebtedness pursuant to the terms hereof in
connection with the incurrence of such Indebtedness, (III) that is
otherwise expressly contemplated by, and permitted by, the Loan Documents or
(IV) 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.

 124
 

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 (x) 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 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 (y) 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 Sole Lead Arranger.

Except as
explicitly set forth herein, the Sole Lead Arranger shall not have any right,
power, obligation, liability, responsibility or duty under this Agreement other
than those applicable to all Lenders in its capacity 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, Administrative Agent
(including any claim for the reasonable compensation, expenses, disbursements
and advances of Lenders, Administrative Agent and its agents and counsel, and
all other amounts due Lenders and Administrative Agent 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;

 125

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 Administrative Agent and its agents and counsel,
and any other amounts due Administrative Agent under subsections 2.3 and 10.2.

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, 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
(I) in the case of an assignment of the entire remaining amount of the
assigning Lender’s rights and obligations under this Agreement or (II) 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,

 126
 

Term Loan Exposure, or obligations in respect
of Incremental Term Loans, as the case may be, of the assigning Lender and the
assignee subject to each such assignment shall not be less than $10,000,000.00
(or $250,000.00 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
$1,000,000.00), unless each of 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 $3,500.00 (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 an Administrative Questionnaire and other
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,

 127
 

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 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 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,

 128
 

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
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 Administrative Agent 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 and Sole Lead Arranger in connection
with the negotiation, preparation, execution and administration of the Loan
Documents and any consents, amendments, waivers or other modifications thereto

 129
 

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
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 or Sole Lead Arranger 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, Sole Lead Arranger or their
respective 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; (ix) all out-of-pocket costs
and expenses, including 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; and (x) all reasonable
out-of-pocket costs and expenses incurred by Issuing Lender in connection with
the issuance, amendment, renewal or extension of any Letter of Credit or any
other demand for payment thereunder.

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 Administrative Agent, Sole Lead Arranger and Lenders (including
Issuing Lenders), and the officers, directors, employees, agents, advisors and
Affiliates of Administrative Agent, Sole Lead Arranger, Lenders and Issuing
Lenders (collectively called the “Indemnitees”),
from and against any and all “Indemnified Liabilities” (as such term is
hereinafter defined), IN ALL CASES, WHETHER OR
NOT CAUSED BY OR ARISING, IN WHOLE OR IN PART, PUT OF THE COMPARATIVE
CONTRIBUTORY OR SOLE NEGLIGENCE OF THE INDEMNITEE; provided
that Company shall not have any obligation to any Indemnitee hereunder with
respect to any Indemnified Liabilities to the extent such Indemnified
Liabilities (i) arise primarily from the gross negligence or willful
misconduct of that Indemnitee as determined by a final and non-appealable
judgment of a court of competent jurisdiction or (ii) arise out of any
claim, litigation, investigation or proceeding that does not involve an act or
omission by Company or any of its Affiliates and that is brought by an
Indemnitee against any other Indemnitee (other than the Administrative Agent
acting in its capacity as such).

 130
 

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 Release or threatened Release of Hazardous
Materials), 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 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
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 made by Holdings, Company or any of their respective
Subsidiaries contained in the commitment letter delivered by Sole Lead
Arranger, any Lender or Administrative Agent to Company with respect thereto,
or (iii) any Environmental Claim against Company, Holdings or any of their
respective Subsidiaries 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, Issuing Lender 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, Issuing Lender or any Affiliate of that
Lender or Issuing 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), Issuing
Lender (or any Affiliate of

 131
 

that Issuing 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
or Issuing 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.

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 or any other Loan Document, (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 (1) 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 (2) the foregoing provisions
shall not apply to (a) any payment made by Company pursuant to and in
accordance with the express terms of this Agreement or (b) 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, to the extent permitted
by applicable law, 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.

 132
 

10.6                        Amendments
and Waivers.

No amendment,
modification, termination or waiver of any provision of this Agreement, the
Notes or any of the other Loan Documents, and no consent to any departure by
Company or Holdings 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:

(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) (i) reduce the principal amount of any Loan,
(ii) 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, (iii) postpone the date on which any interest or
any fees are payable, (iv) 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),
(v) reduce the amount or postpone the due date of any amount payable in
respect of any Letter of Credit, (vi) extend the expiration date of any
Letter of Credit beyond the Revolving Loan Commitment Termination Date,
(vii) extend the Revolving Commitment Termination Date or
(viii) change in any manner the obligations of Revolving Lenders relating
to the purchase of participations in Letters of Credit; and

(b)           each
Lender, (i) 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), (ii) change in any manner any provision of this
Agreement that, by its terms, expressly requires the approval or concurrence of
all Lenders, (iii) increase the maximum duration of Interest Periods
permitted hereunder, (iv) release any Lien granted in favor of
Administrative Agent with respect to all or substantially all of the Collateral
or release from its obligations under the Guaranty any Guarantor that either
(A) at the time of release, owns greater than 5% of the consolidated
assets of Holdings and its Subsidiaries, taken as a whole, or
(B) contributed greater than 5% of the consolidated revenues of Holdings
and its Subsidiaries, taken as a whole, during the most recently ended Fiscal
Year, in each case other than in accordance with the terms of the Loan
Documents, or (v) 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 (t) of any
Note shall be effective without the written concurrence of the Lender which is
the holder of that Note, (u) 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, (v) of Section 3 shall be effective without the written
concurrence of Administrative Agent and Issuing Lender and, with respect to the
purchase of participations in Letters of Credit, without the written
concurrence of each Issuing

 133
 

Lender that has issued an
outstanding Letter of Credit or has not been reimbursed for a payment under a
Letter of Credit, (w) 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, (x) 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
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 (x)), (y) that increases the amount of a Commitment of a Lender
shall be effective without the consent of such Lender and (z) 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, if signed by Company, on Company and, if
signed by Holdings, on Holdings.

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.

A.            Notices Generally.  Except in the case of notices and other
communications expressly permitted to be given by telephone (and except as
provided in subsection 10.8B below), all notices and other communications
provided for herein shall be in writing and shall be delivered by hand or
overnight courier service, mailed by certified or registered mail or sent by
telecopier as follows, and all notices and other communications expressly
permitted hereunder to be given by telephone shall be made to the applicable
telephone number, as follows:

(i)            subject
to subsection 10.8B, if to Company, Administrative Agent, Issuing Lender or
Swing Line Lender, to the address, telecopier number, electronic mail address
or telephone number specified for such Person on Schedule 10.8 annexed
hereto; and

 134
 

(ii)           if
to any other Lender, to
the address, telecopier number, electronic mail address or telephone number
specified on its signature page hereto or in its Administrative Questionnaire.

Notices sent by hand or overnight courier
service, or mailed by certified or registered mail, shall be deemed to have
been given when received; notices sent by telecopier shall be deemed to have
been given when sent (except that, if not given during normal business hours
for the recipient, shall be deemed to have been given at the opening of
business on the next business day for the recipient).  Notices delivered through electronic
communications to the extent provided in subsection 10.8B below, shall be
effective as provided in such subsection 10.8B.

B.            Electronic Communications.  Notices and other communications to any
Lender or Issuing Lender hereunder may be delivered or furnished by electronic
communication (including e-mail and Internet or intranet websites) pursuant to
procedures approved by Administrative Agent, with the prior consent of such
Lender or Issuing Lender, provided that the foregoing shall not apply to
notices to any Lender or Issuing Lender pursuant to Sections 2 and 3 if such
Lender or Issuing Lender, as applicable has notified the Administrative Agent
that it is incapable of receiving notices under such Sections by electronic
communication.  Administrative Agent or
Company may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to
procedures approved by it, provided that approval of such procedures may
be limited to particular notices or communications.  Unless Administrative Agent otherwise
prescribes, (i) notices and other communications sent to an e-mail address
shall be deemed received upon the sender’s receipt of an acknowledgement from
the intended recipient (such as by the “return receipt requested” function, as
available, return e-mail or other written acknowledgement), provided
that if such notice or other communication is not sent during the normal
business hours of the recipient, such notice or communication shall be deemed
to have been sent at the opening of business on the next business day for the
recipient, and (ii) notices or communications posted to an Internet or
intranet website shall be deemed received upon the deemed receipt by the
intended recipient at its e-mail address as described in the foregoing
clause (i) of notification that such notice or communication is available
and identifying the website address therefor.

C.            The Platform.  THE PLATFORM IS PROVIDED “AS IS” AND “AS
AVAILABLE.”  THE “AGENT PARTIES” (AS SUCH
TERM IS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF COMPANY
MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR
ERRORS IN OR OMISSIONS FROM COMPANY MATERIALS. 
NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY
WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT
OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY
ANY AGENT PARTY IN CONNECTION WITH COMPANY MATERIALS OR THE PLATFORM.  In no event shall Administrative Agent or any
of its Affiliates and the partners, directors, officers, employees, agents and
advisors of Administrative Agent and of Administrative Agent’s Affiliates
(collectively, the “Agent Parties”)
have any liability to Company, any Lender, Issuing Lender or any other Person
for losses, claims, damages, liabilities or expenses of any kind (whether in
tort, contract or otherwise) arising out of Company’s or Administrative Agent’s
transmission of Company Materials through the Internet,

 135
 

except to the extent that such
losses, claims, damages, liabilities or expenses are determined by a court of
competent jurisdiction by a final and nonappealable judgment to have resulted
from the gross negligence or willful misconduct of such Agent Party; provided,
however, that in no event shall any Agent Party have any liability to
Company, any Lender, Issuing Lender or any other Person for indirect, special,
incidental, consequential or punitive damages (as opposed to direct or actual
damages).

D.            Change of Address, Etc.  Each of Company, Administrative Agent,
Issuing Lender and Swing Line Lender may change its address, electronic mail
address, telecopier or telephone number for notices and other communications
hereunder by notice to the other parties hereto.  Each other Lender may change its address,
telecopier or telephone number for notices and other communications hereunder
by notice to Company, Administrative Agent, Issuing Lender and Swing Line
Lender.  In addition, each Lender agrees
to notify Administrative Agent from time to time to ensure that Administrative
Agent has on record (i) an effective address, contact name, telephone number,
telecopier number and electronic mail address to which notices and other
communications may be sent and (ii) accurate wire instructions for such
Lender.  Furthermore, each Public Lender
agrees to cause at least one individual at or on behalf of such Public Lender
to at all times have selected the “Private Side Information” or similar
designation on the content declaration screen of the Platform in order to
enable such Public Lender or its delegate, in accordance with such Public
Lender’s compliance procedures and applicable federal state or local law,
including United States Federal and state securities laws, to make reference to
Company Materials that are not made available through the “Public Side
Information” portion of the Platform and that may contain material non-public
information with respect to the Company or its securities for purposes of
United States Federal or state securities laws.

E.             Reliance by Administrative
Agent, Issuing Lender and Lenders.  Administrative
Agent, Issuing Lender and Lenders shall be entitled to rely and act upon any
notices (including telephonic Notices of Borrowing or Notices of Borrowing (Swing Line)) purportedly given by or
on behalf of Company even if (i) such notices were not made in a manner
specified herein, were incomplete or were not preceded or followed by any other
form of notice specified herein, or (ii) the terms thereof, as understood by
the recipient, varied from any confirmation thereof.  Company shall defend, indemnify and hold
harmless Administrative Agent, Issuing Lender, each Lender and their respective
Affiliates, partners, directors, officers, employees, agents and advisors
thereof and of their respective Affiliates of each of them from all losses,
costs, expenses and liabilities resulting from the reliance by such Person on
each notice purportedly given by or on behalf of Company; provided that
Company shall not have any obligation to any such indemnitee pursuant to this
subsection 10.8E with respect to any such indemnified matters to the extent
such indemnified matters arise primarily from the gross negligence or willful
misconduct of such indemnitee as determined by a final and non-appealable
judgment of a court of competent jurisdiction. 
All telephonic notices to and other telephonic communications with
Administrative Agent may be recorded by Administrative Agent, and each of the
parties hereto hereby consents to such recording.

 136
 

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 Administrative 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
Administrative Agent nor any Lender shall be under any obligation to marshall
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
Administrative Agent 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 (including
pursuant to any settlement entered into by Administrative Agent, Issuing Lender
or such Lender, in its discretion) 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. 
Each Lender and Issuing Lender severally agrees to pay to Administrative
Agent upon demand its applicable share (without duplication) of any amount so
recovered from or repaid by Administrative Agent, plus interest thereon from
the date of such demand to the date such payment is made at a rate per annum
equal to the Federal Funds Effective Rate from time to time in effect.  The obligations of the Lenders and Issuing
Lender under the preceding sentence shall survive the payment in full of the
Obligations and the termination of this Agreement.

10.12                 Severability.

In case any
provision in or obligation under this Agreement, the Notes or the other Loan
Documents shall be illegal, invalid or unenforceable in any jurisdiction, the
legality,

 137
 

invalidity 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. The parties shall endeavor in good faith negotiations to
replace any illegal, invalid or unenforceable provisions with valid provisions
the economic effect of which comes as close as possible to that of the illegal,
invalid or unenforceable provisions.  The
invalidity of a provision in a particular jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

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, each of Holdings and Company shall not assert, and hereby
irrevocably 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
(and such other Lenders, if any, as shall be required hereunder) 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 evidence reasonably

 138
 

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, (iv) Administrative Agent, Sole Lead Arranger and all of
the Lenders do not have any fiduciary relationship with or duty to Company or
Holdings arising out of or in connection with this Agreement or any of the
other Loan Documents, and the relationship between Administrative Agent, Sole
Lead Arranger and Lenders, on one hand, and Company and Holdings, on the other
hand, in connection herewith or therewith is solely that of debtor and
creditor.  Administrative Agent and Sole Lead
Arranger each does not have any obligation to Company, any other Loan Party or
any of their Affiliates with respect to the transactions contemplated hereby
except those obligations expressly set forth herein and in the other Loan
Documents.  Administrative Agent, Sole
Lead Arranger and their respective Affiliates may be engaged in a broad range
of transactions that involve interests that differ from those of Company, the
other Loan Parties and their respective Affiliates, and Administrative Agent
and Sole Lead Arranger each has no obligation to disclose any of such interests
to Company, any other Loan Party of any of their respective Affiliates.  To the fullest extent permitted by law, each
of Company and the other Loan Parties hereby waive and release, any claims that
it may have against Administrative Agent or Sole Lead Arranger with respect to
any breach or alleged breach of agency or fiduciary duty in connection with any
aspect of any transaction contemplated hereby. 
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 OR HOLDINGS 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,
EACH OF

 139
 

COMPANY AND HOLDINGS, FOR ITSELF
AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY

(i)            ACCEPTS GENERALLY AND
UNCONDITIONALLY THE NON-EXCLUSIVE 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 COMPANY OR HOLDINGS, AS APPLICABLE, 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
AND HOLDINGS 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 OR HOLDINGS 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, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, 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
(WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER.  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

 140
 

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.

10.19                 Confidentiality.

Each Lender shall
hold all “Information” (as such term is hereinafter defined) 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 under any other Loan Document or any suit, action or
proceeding relating to this Agreement or any other Loan Document or the
enforcement of rights hereunder or thereunder, (f) subject to an agreement
containing provisions substantially the same as those of this 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 (which may be given or withheld in its sole discretion), (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 non-confidential 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 Administrative 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

 141
 

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; provided, further that in no
event shall any Lender be obligated or required to return any materials
furnished by Holdings, Company or any of its Subsidiaries.  In addition, Administrative Agent, Sole Lead
Arranger 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, Sole Lead Arranger and Lenders, and Administrative Agent, Sole Lead
Arranger or any of their respective Affiliates may place customary “tombstone”
advertisements relating hereto in publications (including publications
circulated in electronic form) of its choice at its own expense.  Any Person required to maintain the
confidentiality of Information as provided in this subsection 10.19 shall be
considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential information
(which in no event shall be less than reasonable care).  Each of Administrative Agent, Sole Lead
Arranger, the Lenders and Issuing Lender acknowledges that (i) the Information
may include material non-public information concerning Holdings, Company or any
of their respective Subsidiaries, as the case may be, (ii) it has developed
compliance procedures regarding the use of material non-public information and
(iii) it will handle such material non-public information in accordance with
applicable Federal, state or local law, including Federal and state securities
laws.

For purposes of
this subsection 10.19, “Information”
means all information received from Holdings, Company or any of their
respective Subsidiaries or any of their respective businesses, other than any
such information that is available to Administrative Agent, Sole Lead Arranger,
any Lender or Issuing Lender on a nonconfidential basis prior to disclosure by
Holdings, Company or any of their respective Subsidiaries, provided
that, in the case of information received from Holdings, Company or any of
their respective Subsidiaries after the date hereof, such information is
clearly identified at the time of delivery as confidential.

10.20                 Counterparts;
Integration; 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 and the other Loan Documents
constitute the entire contract among the parties relating to the subject matter
hereof and supersede any and all previous agreements and understandings,
whether oral or written, relating to the subject matter hereof.  This Agreement shall become effective upon
the execution of a counterpart hereof by each of the parties hereto.  Delivery of an executed signature page of
this Agreement by facsimile or electronic transmission shall be as effective as
delivery of an originally-executed counterpart thereof.

 142
 

10.21                 Reimbursement
by Lenders.

To the extent that
Company for any reason fails to indefeasibly pay any amount required under
subsection 10.2 or 10.3 of this Agreement to be paid by Company to
Administrative Agent (or any sub-agent thereof), Sole Lead Arranger, Issuing
Lender or any officer, director, employee, agent, advisor or Affiliate of such
Persons, each Lender severally agrees to pay to Administrative Agent (or any
such sub-agent), Sole Lead Arranger, Issuing Lender or such officer, director,
employee, agent, advisor or Affiliate, as the case may be, such Lender’s Pro
Rata Share (determined as of the time that the applicable unreimbursed expense
or indemnity payment is sought) of such unpaid amount, provided that the
unreimbursed expense or indemnified loss, claim, damage, liability or related
expense, as the case may be, was incurred by or asserted against Administrative
Agent (or any such sub-agent), Sole Lead Arranger or Issuing Lender in its
capacity as such, or against any officer, director, employee, agent, advisor or
Affiliate of any of the foregoing acting for Administrative Agent (or any such
sub-agent), Sole Lead Arranger or Issuing Lender in connection with such
capacity.

10.22                 USA Patriot
Act Notice.

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

[Remainder of page intentionally left blank.]

 143

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.

	
  

  	
  MAIDENFORM, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven N. Masket

  	
   

  
	
   

  	
  Name:

  	
  Steven N. Masket

  
	
   

  	
  Title:

  	
  Executive Vice President and Secretary

  
	
   

  	
   

  
	
   

  	
  MAIDENFORM BRANDS, INC.
  (solely for the purposes

  of binding itself to certain representations, warranties and

  covenants contained in this Agreement and not for purposes

  of becoming a “borrower” hereunder)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven N. Masket

  	
   

  
	
   

  	
  Name:

  	
  Steven N. Masket

  
	
   

  	
  Title:

  	
  Executive Vice President and Secretary

  

 

 

Signature
Page to Credit Agreement

 

LENDERS:

	
   

  	
  BANK OF AMERICA, N.A.,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William T. Franey

  	
   

  
	
   

  	
  Name:

  	
  William T. Franey

  
	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Pierre Lambert

  	
   

  
	
   

  	
  Name:

  	
  Pierre Lambert

  
	
   

  	
  Title:

  	
  Directeur

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Diane C. Favreau

  	
   

  
	
   

  	
  Name:

  	
  Diane C. Favreau

  
	
   

  	
  Title:

  	
  Vice-President

  
	
   

  	
   

  	
   

  
	
   

  	
  Notice Address:

  
	
   

  	
   

  
	
   

  	
  1000, place Jean-Paul-Riopelle

  
	
   

  	
  Montréal/ Québec/H2Z 2B3

  

 

 

Signature
Page to Credit Agreement

 

SWING
LINE LENDER:

	
   

  	
  BANK OF AMERICA, N.A.,

  
	
   

  	
  as the Swing Line Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William T. Franey

  	
   

  
	
   

  	
  Name:

  	
  William T. Franey

  
	
   

  	
  Title:

  	
  Senior Vice President

  

 

 

Signature
Page to Credit Agreement

 

ISSUING
LENDER:

	
   

  	
  BANK OF AMERICA, N.A.,

  
	
   

  	
  as the Issuing Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William T. Franey

  	
   

  
	
   

  	
  Name:

  	
  William T. Franey

  
	
   

  	
  Title:

  	
  Senior Vice President

  

 

 

Signature
Page to Credit Agreement

ADMINISTRATIVE

AGENT:

	
   

  	
  BANK OF AMERICA, N.A.,

  
	
   

  	
  as the Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Matthew C. Correla

  	
   

  
	
   

  	
  Name:

  	
  Matthew C. Correla

  
	
   

  	
  Title:

  	
  Vice President

  

 

 

Signature
Page to Credit Agreement

Schedule
2.1

COMMITMENTS

	
   

  	
   

  	
  Closing Date Term Loans

  	
   

  	
  Revolving Loans

  	
   

  	
  Aggregate

  	
   

  
	
  Lender

  	
   

  	
  Commitment

  	
   

  	
  Pro Rata Share

  	
   

  	
  Commitment

  	
   

  	
  Pro Rata Share

  	
   

  	
  Pro Rata Share

  	
   

  
	
  Caisse de dépôt et
  placement du Québec

  	
   

  	
  $

  	
  85,000,000

  	
   

  	
  85

  	
  %

  	
  $

  	
  25,000,000

  	
   

  	
  50

  	
  %

  	
  73.3

  	
  %

  
	
  Bank of America, N.A.

  	
   

  	
  $

  	
  15,000,000

  	
   

  	
  15

  	
  %

  	
  $

  	
  25,000,000

  	
   

  	
  50

  	
  %

  	
  26.7

  	
  %

  
	
  TOTAL

  	
   

  	
  $

  	
  100,000,000

  	
   

  	
  100

  	
  %

  	
  $

  	
  50,000,000

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  

 

 S-1
 

Schedule
2.2

PRICING
GRID

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  UNUSED

  	
   

  
	
  CONSOLIDATED

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  SWING LINE

  	
   

  	
  REVOLVING

  	
   

  
	
  LEVERAGE

  	
   

  	
  REVOLVING LOAN MARGIN

  	
   

  	
  TERM LOAN MARGIN

  	
   

  	
  LOAN

  	
   

  	
  COMMITMENT

  	
   

  
	
  RATIO

  	
   

  	
  Base Rate

  	
   

  	
  LIBOR

  	
   

  	
  Base Rate

  	
   

  	
  LIBOR

  	
   

  	
  MARGIN

  	
   

  	
  FEE

  	
   

  
	
  Less than 1.00x

  	
   

  	
  0

  	
  %

  	
  0.75

  	
  %

  	
  0

  	
  %

  	
  1.00

  	
  %

  	
  -0.15

  	
  %

  	
  0.15

  	
  %

  
	
  Greater than or equal
  to 1.00x and less than 1.50x

  	
   

  	
  0

  	
  %

  	
  0.875

  	
  %

  	
  0.125

  	
  %

  	
  1.125

  	
  %

  	
  -0.175

  	
  %

  	
  0.175

  	
  %

  
	
  Greater than or equal
  to 1.50x and less than 2.00x

  	
   

  	
  0

  	
  %

  	
  1.00

  	
  %

  	
  0.25

  	
  %

  	
  1.25

  	
  %

  	
  -0.20

  	
  %

  	
  0.20

  	
  %

  
	
  Greater than or equal
  to 2.00x and less than 2.50x

  	
   

  	
  0.125

  	
  %

  	
  1.125

  	
  %

  	
  0.375

  	
  %

  	
  1.375

  	
  %

  	
  -0.10

  	
  %

  	
  0.225

  	
  %

  
	
  Greater than or equal
  to 2.50x and less than 3.00x

  	
   

  	
  0.25

  	
  %

  	
  1.25

  	
  %

  	
  0.50

  	
  %

  	
  1.50

  	
  %

  	
  0

  	
  %

  	
  0.25

  	
  %

  
	
  Greater than or equal to 3.00

  	
   

  	
  0.75

  	
  %

  	
  1.75

  	
  %

  	
  1.00

  	
  %

  	
  2.00

  	
  %

  	
  0.40

  	
  %

  	
  0.35

  	
  %

  

 

 S-2

EXHIBITS

I-A                              FORM OF NOTICE OF BORROWING

I-B                                FORM OF NOTICE OF BORROWING (SWING LINE)

II                                        FORM OF NOTICE OF CONVERSION/CONTINUATION

III-A                      FORM OF L/C APPLICATION (COMMERCIAL)

III-B                        FORM OF L/C APPLICATION (STANDBY)

IV                                    FORM OF TERM NOTE

V                                        FORM OF REVOLVING NOTE

VI                                    FORM OF SWING LINE NOTE

VIII                            MATTERS TO BE COVERED BY OPINION OF COMPANY
COUNSEL

IX                                   FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT

X                                       FORM OF SOLVENCY CERTIFICATE

XIII                           FORM OF COLLATERAL ACCESS AGREEMENT

XIV                           FORM OF BORROWING BASE CERTIFICATE

EXHIBIT I-A

[FORM
OF] NOTICE OF BORROWING

Date:                     ,
       

To:              Bank of America, N.A., as Administrative
Agent

Ladies
and Gentlemen:

Reference
is made to that certain Credit Agreement, dated as of June 15, 2007 (as
amended, restated, extended, supplemented or otherwise modified in writing from
time to time, the “Agreement”; the
terms defined therein being used herein as therein defined), among Maidenform,
Inc., a New York corporation (“Company”), amongst others, the Lenders from time to time
party thereto, and Bank of America, N.A., as Administrative Agent, Issuing
Lender and Swing Line Lender.

The
undersigned hereby requests a borrowing
of [Revolving][Closing Date Term][Incremental Term] Loans,

1.                                       On                                                        
(a Business Day).

2.                                       In the amount of $                                                           .

3.                                       Comprised of                                                                    .

[Type of Loan requested]

4.                                       For LIBOR Loans:  with an Interest Period of                 
months.

[The
Revolving Loan requested herein complies with the requirements of Section
2.1A(ii) of the Agreement.][USE IN THE CASE OF A
REVOLVING LOAN]

Company
hereby represents and warrants that the conditions specified in Sections
4.1, 4.2 and 4.3 of the Agreement, as applicable, shall be satisfied on and
as of the date of the making of the applicable Loan.

	
  

  	
  MAIDENFORM, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

EXHIBIT I-B

[FORM
OF] NOTICE OF BORROWING (SWING LINE)

Date:                   ,
       

To:              Bank of America, N.A., as Swing Line Lender
                                 Bank of America, N.A., as Administrative
Agent

Ladies
and Gentlemen:

Reference
is made to that certain Credit Agreement, dated as of June 15, 2007 (as
amended, restated, extended, supplemented or otherwise modified in writing from
time to time, the “Agreement”; the
terms defined therein being used herein as therein defined), among Maidenform,
Inc., a New York corporation (“Company”), amongst others, the Lenders from time to time
party thereto, and Bank of America, N.A., as Administrative Agent, Issuing
Lender and Swing Line Lender.

The
undersigned hereby requests a Swing Line Loan:

1.                                       On                                                        
(a Business Day).

2.                                       In the amount of $                                           .

The
Swing Line Loan requested herein complies with the requirements of Section
2.1A(iii) of the Agreement.

Company
hereby represents and warrants that the conditions specified in Sections 4.2
(A)[,][ and] (B) [and (C)] of the Agreement shall be satisfied on and as of
the date of the making of the Swing Line Loan.

	
  

  	
  MAIDENFORM, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

EXHIBIT II

[FORM
OF] NOTICE OF CONVERSION/CONTINUATION

Date:                          ,
         

To:              Bank of America, N.A., as Administrative
Agent

Ladies
and Gentlemen:

Reference
is made to that certain Credit Agreement, dated as of June 15, 2007 (as
amended, restated, extended, supplemented or otherwise modified in writing from
time to time, the “Agreement”; the
terms defined therein being used herein as therein defined), among Maidenform,
Inc., a New York corporation (“Company”), amongst others, the Lenders from time to time
party thereto, and Bank of America, N.A., as Administrative Agent, Issuing
Lender and Swing Line Lender.

The undersigned hereby
requests a continuation of LIBOR or
conversion of [Revolving][Closing Date Term][Incremental Term] Loans,

1.                                       On                                            
(a Business Day).

2.                                       In the amount of $                              .

3.                                       [From                  
to                          ]
[For conversion].

4.                                       For LIBOR Loans:  with an Interest Period of               
months.

[The
Revolving Loan requested herein complies with the requirements of Section
2.1A(ii) of the Agreement.][USE IN THE CASE OF
CONVERSION TO A REVOLVING LOAN]

Company
hereby represents and warrants that the conditions specified in Sections
4.1, 4.2 and 4.3 of the Agreement, as applicable, shall be satisfied on and
as of the date of the making of the applicable Loan.

	
  

  	
  MAIDENFORM, INC.

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

EXHIBIT III-A

FORM
OF L/C APPLICATION (COMMERCIAL)

	
  

  	
   

  	
   

  
	
   

  	
   

  	
  For Bank of
  America Use Only

  
	
  Application
  and Agreement for Commercial Letter of Credit

  	
   

  	
  L/C No

  	
   

  
	
  TO: Bank of America, N.A.
  (“Bank of America”)

  	
   

  	
   

  	
   

  

 

A.
Application

	
  1.  Applicant Name & Address
  (guarantor for Letter of Credit) requests Bank of America to issue an
  irrevocable commercial letter of credit (the “Letter of Credit”) as
  follows:  o
  Full text teletransmission o  Courier

  	
   

  	
  2.  Advising Bank Name and
  Address:
 (Not Required, Bank of America will select correspondent)

  

 

	
  3. For Account of Party/Named Applicant on the Letter of Credit   (Name and address, if different
  from Applicant as indicated in Box 1):

  	
   

  	
  4. In favor of  (Beneficiary Name and Address):

  

 

5.
Expiration Date.
Documents to be presented to the Negotiating or Paying Bank on or before:

	
  6. Amount:

  	
   

  	
  (                                             )

  	
   

  
	
   

  	
   

  	
  Put in figures and words. For example: ($10,000) Ten
  thousand and 00/00

  	
   

  	
   

  
	
  Currency

  	
   

  	
   

  	
  (if left blank, U.S. dollars)

  	
  Tolerance

  	
   

  
								

 

	
  7.  Covering :

  	
   

  	
  % of invoice value. (Full
  invoice value unless otherwise specified.)

  

 

	
  8. Available by drafts:    o Sight

  	
   

  	
  o

  	
   

  	
  Days
  Sight      o

  	
   

  	
  Days Date (being the date of the 

  
	
  transport document). Drafts to be drawn on Bank of
  America or Bank of America’s correspondent, at Bank of America’s option.

  
	
  Bank of America may at its option waive any draft
  requirement.

  

 

	
  9. Partial Shipment:

  	
   

  	
  10. Transshipment

  
	
  o   Permitted
    o   Not
  Permitted

  	
   

  	
  o   Permitted
    o   Not
  Permitted

  

 

	
  11. Transferable Letter of Credit?

  
	
  o   Yes
    o   No
                                                      (If
  Yes, Advising bank will be the
  authorized bank to Transfer)

  

 

	
  12.

  	
  Latest Shipment Date

  	
  Place of Taking in Charge/ Dispatch From/ Place
  of Receipt

  	
  Port of Loading/ Airport of Departure

  	
  Port of Discharge/ Airport of Destination 

  	
  Place of Final Destination/ For Transportation
  To/ Place of Delivery

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  13. Merchandise to be described in invoice as (omit
  unnecessary details and specify price basis below).

  
	
   

  

 

	
  14. Shipping Terms/Price Basis (Check one):

  	
  o FCA

  	
   

  	
  o FOB

  	
   

  	
  o CFR

  	
   

  	
  o CIF

  	
   

  	
  o Other:

  	
   

  

 

	
  15. Documents Required (Check applicable boxes below)

  
	
  o  Commercial
  invoice

  	
   

  	
  original(s) and

  	
   

  	
   copies.

  
	
  o  Packing
  List in

  	
   

  	
  original(s) and

  	
   

  	
  copies.

  
	
  o  Certificate
  of Origin in

  	
   

  	
  original(s) and

  	
   

  	
  copies.

  
	
  o  Negotiable
  Marine/Air Insurance Policy or Certificate for at least 110% invoice value in
  duplicate,

  
	
  Including coverage for:  o  
  War Risk    o   All
  Risks    o   
  Other Risks (Specify)

  
	
  OR  o  Insurance to be effected by
  Buyer (No Insurance document will be required in the LC)

  
	
  o  Transport documents:   
  o  Marine
  B/L    o  Multi-modal
  B/L    o  Airway
  Bill    o  Truck
  B/L    o  Other  __________

  
	
  Presented in      o   Full
  Set            o  2/3           
  o  1/3

  	
   

  	
  Copy

  	
   

  
															

 

	
  ·      For Multimodal Transport
  Document or Marine/Ocean Bill of Lading:

  	
   

  	
  ·      For All Other Transport Documents:

  
	
  o  Consigned
  to the order of

  	
   

  	
  o  Consigned
  to Applicant

  
	
  o  Consigned
  to the order of Shipper, blank endorsed

  	
   

  	
  o  Consigned
  to

  
	
  o  Consigned
  to Applicant (if non-negotiable)

  	
   

  	
   

  

 

	
  Marked Notify: (Applicant’s name
  inserted if left blank)

  	
   

  
	
   

  
	
  Marked freight:  o  
  collect     o  
  prepaid.

  
	
  o   Other
  documents:

  	
   

  
			

 

	
  16. Special Instructions to be included in the Letter of Credit: (Unless
  otherwise stated)

  
	
  All bank charges (other than those of Bank of
  America) are for the account of the Beneficiary. Discount charges, if any,
  are for the account of the Beneficiary. All documents are to be sent by the
  negotiating/paying bank to Bank of America in one cover by courier or
  registered mail.

  
	
  o  Other
  instructions:

  

 

17. Special
Instructions to Bank of America:

	
  18. Documents must be presented to the negotiating
  or paying bank no later than:  ________  days after date of
  transport 

  
	
  document (on board  validation applicable for ocean shipment)
  but within the validity of the Letter of Credit. (Will be 21 days if left
  blank.)

  

 

	
  o If this box is marked.
  Applicant authorizes Bank of America to effect payment of any sums due under
  this Application and Agreement by means of debiting Applicant’s account with
  Bank of America set forth below. This authorization does not affect the
  obligation of Applicant to pay such sums when due, if there are insufficient
  funds in such account to make such payment when due, or if Bank of America
  fails to debit the account, and this authorization, does not affect any
  setoff rights of Bank of America at law or in equity.  Applicant’s account number with Bank of
  America is _______________________.

  

B. Agreement.

In consideration of Bank of
America’s issuing the Letter of Credit at the request of Applicant, Applicant
unconditionally agrees to the following:

1.     Applicant Payments.

(a) Applicant shall pay Bank
of America all amounts paid by Bank of America or its agent, or any party on
Bank of America’s behalf under or in respect of each draft, acceptance or other
order, instrument or demand drawn or presented under the Letter of Credit (the “Item”).
Sight Items will be reimbursed on demand. Acceptances or other time Items shall
be reimbursed on demand, or at maturity if no earlier demand is made by Bank of
America. Regardless of the expiration date of the Letter of Credit, Applicant
shall remain liable hereunder until Bank of America has no liability to any
person, firm, corporation or other entity which is entitled to draw or demand
payment under the Letter of Credit.

(b) On each fee payment date,
so long as any undrawn amount of the Letter of Credit remains available,
Applicant shall pay Bank of America a Letter of Credit fee. The fee payment
date(s) shall be the date(s) as Applicant and Bank of America may agree, or in the
absence of such agreement, the fee payment date shall be the date on which the
Bank of America issues the Letter of Credit. The fee shall be at such rate per
annum as Applicant and Bank of America may agree or, in the absence of such
agreement, at the rate customarily charged by Bank of America at the time such
fee is payable, based upon Applicant’s creditworthiness, as determined by Bank
of America in its sole discretion. The applicable Letter of Credit fee shall be
calculated and payable on the undrawn amount of the Letter of Credit as of each
fee payment date, and shall be for the period commencing on such fee payment
date and ending on the day preceding the next fee payment date (or the expiration
date of the Letter of Credit, as the case may be), both dates inclusive. The
Letter of Credit fee will be computed on the basis of a 360-day year and actual
days elapsed. Bank of America shall not be required to refund any portion of
the Letter of Credit fee paid for any period during which (a) the Letter of
Credit expires or otherwise terminates, or (b) the undrawn amount of the Letter
of Credit is reduced by drawings or by amendment.

(c) Applicant shall pay Bank
of America, on demand, commissions and fees for amendments to, payments under,
extensions of or cancellation of the Letter of Credit, and other services in
the amounts Applicant and Bank of America may agree or, in the absence of such
agreement, in the amounts customarily charged by Bank of America on the date of
Bank of America’s demand.

(d) All payments and deposits
of any kind by Applicant under this Application and Agreement, including
prepayments, shall be made at the banking center or office Bank of America may
designate from time to time. Bank of America shall have no obligation to pay Applicant
interest on any such payment, prepayment or deposit made by Applicant under this
Application and Agreement.

(e) (i) All payments and
deposits by Applicant under this Application and Agreement shall be in the
currency in which the Letter of Credit is payable, except that Bank of America
may, at its option, require payments and deposits by Applicant under this
Application and Agreement to be made in U.S. Dollars if the Letter of Credit is
payable in a foreign currency.

(ii) The amount of each
payment and each deposit by Applicant under this Application and Agreement in
U.S. Dollars for a Letter of Credit payable in a foreign currency shall be
determined by converting the relevant amount to U.S. Dollars at the Conversion
Rate in effect:

(A) with respect to each
payment under Section 1(a) of this Agreement, on the date the payment is made
by Bank of America under or in respect of the Letter of Credit; and

(B) with respect to each
payment not falling under the preceding clause (A) and each deposit, on the
date of Bank of America’s demand for such payment or deposit.

(iii) If a U.S. Dollar
deposit by Applicant under this Application and Agreement for a Letter of
Credit payable in a foreign currency becomes less than the U.S. Dollar equivalent
of the undrawn amount of the Letter of Credit because of any variation in rates
of exchange, Applicant shall deposit with Bank of America, on demand,
additional amounts in U.S. Dollars so that the total amount deposited by
Applicant under this Application and Agreement is not less than the U.S. Dollar
equivalent of the undrawn amount of the Letter of Credit, determined by using
the Conversion Rate on the date of Bank of America’s latest demand.

(iv) “Conversion Rate” means
the rate quoted by Bank of America for the purchase from Bank of America of the
relevant foreign currency with U.S. Dollars.

(f) Applicant shall reimburse
or compensate Bank of America, on demand, for all costs incurred, losses
suffered and payments made by Bank of America which are applied or allocated by
Bank of America to the Letter of Credit (as determined by Bank of America) by
reason of any and all present or future reserve, capital, deposit, assessment
or similar requirements against (or against any class of or change in or in the
amount of) assets or liabilities of, or commitments or extensions of credit by,
Bank of America.

(g) Applicant shall pay
interest, on demand, on any amount not paid when due under this Application and
Agreement from the due date until payment in full at a rate per annum equal to
the rate of interest publicly announced from time to time by Bank of America as
its prime rate, plus three percentage points (not to exceed the maximum rate permitted
by applicable law). The prime rate is set by Bank of America based on various factors,
including Bank of America’s costs and desired return, general economic
conditions and other factors, and is used as a reference point for pricing some
credits. Bank of America may price credit at, above or below the prime rate.
Any change in Bank of America’s prime rate shall take effect at the opening of
business on the day specified in Bank of America’s public announcement of a
change in Bank of America’s prime rate. Interest will be computed on the basis
of a 360-day year and actual days elapsed.

2.     Place of Issuance. The Letter of Credit may be issued by any
office of Bank of America within or outside the United States.

3.     Deposit Events. Upon the occurrence of any of the following
events, Applicant shall deposit with Bank of America, on demand (except that
such demand shall not be required in the event of an occurrence described in
(b) below) and as cash security for Applicant’s obligations to Bank of America
under this Application and Agreement, an amount equal to the undrawn amount of
the Letter of Credit:

(a) Applicant defaults under
any provision of this Application and Agreement;

(b) Any bankruptcy or similar
proceeding is commenced with respect to Applicant;

(c) Any default occurs under
any other agreement involving the borrowing of money or the extension of credit
under which Applicant may be obligated as borrower, installment purchaser or
guarantor, if such default consists of the failure to pay any indebtedness when
due or if such default permits or causes the acceleration of any indebtedness
or the termination of any commitment to lend or to extend credit;

(d) Applicant or any of its
affiliates defaults on any other obligation to Bank of America;

(e) In the opinion of Bank of
America, any material adverse change occurs in Applicant’s business,
operations, financial condition or ability to perform its obligations under
this Application and Agreement;

(f) Any guarantee of
Applicant’s obligations under this Application and Agreement terminates, is
revoked or its validity is contested by the guarantor, or any of the events set
forth in (b) through (e) above occur with respect to the guarantor; or

(g) Any court order,
injunction or other legal process is issued restraining or seeking to restrain
drawing or payment under the Letter of Credit.

4.     Charge to Accounts. If Bank of America is unable to debit the
account, if any, specified on the Application, Applicant authorizes Bank of
America to charge any of Applicant’s accounts with Bank of America, or any
affiliate of Bank of America, for all amounts then due and payable to Bank of
America under this Application and Agreement.

5.     Documentation. (a) Unless specified to the contrary in the
Application, or any amendment to the Letter of Credit, Customer agrees that
Bank of America and its correspondents may receive and accept (i) as “bills of
lading” any documents issued or purportedly issued by or on behalf of any
carrier which acknowledges receipt of property for transportation, irrespective
of the specific provisions of such documents, (ii) either insurance policies or
insurance certificates as documents of insurance, (iii) the description of
property contained in any invoice as sufficient and controlling against other
descriptions contained in any bills of lading, insurance or other documents
accepted, as long as such descriptions are not inconsistent with one another,
(iv) any documents containing stamped, written, or typewritten provisions,
whether or not signed and initialed, as if the same were placed with authority
on the documents at the time of issuance by the carrier, other issuer, or one
of their agents, (v) any Items or documents otherwise in order, issued or
purportedly issued by an agent, executor, trustee in bankruptcy, receiver or
other representative of the party authorized under the Letter of Credit to
issue such Items or other documents, as complying with the terms of the Letter
of Credit and (vi) documents which comply with the UCP as defined in Section 9
of this Agreement or which comply with the laws, regulations, customs or usages of the place of shipment or
negotiation/payment/acceptance, or both. The provisions of clause (v) above
shall in no way be deemed to preclude the beneficiary of the Letter of Credit
from issuing and presenting Items or documents under the terms of the Letter of
Credit.

(b) In the event that some of
the documents required under the Letter of Credit are forwarded directly to
Applicant or any other party designated by Applicant, or Bank of America
releases or consents to the release of some or all of the property shipped
under the Letter of Credit prior to the presentation of the relative Item,
Applicant agrees to pay Bank of America on demand the amount of any claim made
against Bank of America by reason thereof and authorizes Bank of America to
honor such Item when it is presented regardless of whether or not such Item or
any document that may accompany it complies with the terms of the Letter of
Credit. In case of Bank of America’s issuance of a steamship indemnity or
airway release for its account, Bank of America is authorized to retain
original bills of lading for delivery to the shipping company to secure the
release of Bank of America’s indemnity.

(c) Subject to the provisions
of this Section 5, in the event that any Item presented to Bank of America
appears on its face to be inconsistent with any other Item or to be non-compliant
with the terms and conditions of the Letter of Credit, Bank of America may send
notice thereof to Applicant. In that event, Applicant will promptly review such
notice and will notify Bank of America within seven business days of its
receipt of such notice if it has any claim of non-compliance or inconsistency.
If Applicant does not so notify Bank of America within such seven business day
period, Applicant will conclusively be deemed to have waived such
non-compliance or inconsistency.

6.     Collateral. (a) As security for the performance of all
obligations of every kind (including, but not limited to, the obligation to
make payments pursuant to Section 1 hereof) owed by Applicant to Bank of
America under the Letter of Credit, this Agreement, or otherwise, whether
direct or indirect, absolute or contingent, now or hereafter existing, or due
or to become due, howsoever created, arising or evidenced (the “Liabilities”),
Applicant hereby assigns, pledges and grants to Bank of America a lien upon and
a security interest for Bank of America’s benefit in, and recognizes and admits
Bank of America’s unqualified right to:  (i)
the possession and disposal of any and all Items, all shipping documents, warehouse
receipts, policies or certificates of insurance, and other documents accompanying
or relative to any Items, and all Property (as defined below) covered, shipped,
or stored under any Items or documents whether or not any Items, documents, or Property
shall be released to Applicant, (ii) all claims which the Applicant may have
against anyone else in connection with any of the foregoing including, without
limitation, any guarantees, indemnities, agreements or other undertakings,
policies of insurance or assurances in connection therewith, (iii) all other
Property (A) which, now or hereafter, is in Bank of America’s possession,
control, or in transit to, or the pledge of which is at any time registered to,
Bank of America or Bank of America’s agent or bailee for any reason or purpose
or (B) in which, now or hereafter, Bank of America may have a security
interest, securing any of the Liabilities, (iv) all balances, credits,
deposits, accounts or moneys, held by Bank of America, now or hereafter, which
Applicant owns or in which Applicant may have an interest, and (v) all
dividends, distributions and other rights in or with respect to, and
substitutions for and products and proceeds of, any of the foregoing being
referred to collectively as the “Collateral”. In addition, Applicant agrees: (i)
that Applicant shall keep all Collateral that is customarily insured against
loss, damage, theft and other risks, insured in amounts and by companies
satisfactory to Bank of America, and either assign the policies and
certificates of insurance to Bank of America or make the loss or adjustment
payable to Bank of America, and hold as Bank of America’s agent in trust for
Bank of America any proceeds received by Applicant under such policies and
promptly deliver the same to Bank of America, (ii) that, if Bank of America at
any time deems such insurance inadequate for any reason, Bank of America may
procure such insurance as Bank of America deems necessary, at Applicant’s
expense, and (iii) to furnish to Bank of America such certificates or other
evidence with respect to the foregoing as Bank of America may request. “Property”
includes any rights or interests in goods, merchandise, documents, securities, funds,
chooses-in-action and any and all other forms of property, whether tangible or intangible,
real, personal or mixed, and proceeds thereof, which are owned by Applicant.

(b) Applicant agrees to keep
the Collateral free and clear of all other interests and claims and, at any
time and from time to time, upon Bank of America’s request, (i) to deliver to
Bank of America any of the Collateral that may then be in or may hereafter come
into its possession or control, (ii) to execute and deliver to Bank of America
such further security agreements, financing statements and other documents (and
to pay the cost of filing or recording the same in all public offices deemed
necessary by Bank of America), and to do such other acts or things required to
perfect and maintain a valid security interest in the Collateral to secure the
payment of the Liabilities (and any reproductions of this Agreement or of any
such other security agreement or financing statement shall be sufficient for
filing as a financing statement), (iii) to furnish to Bank of America
information concerning its financial condition, the Collateral, and any obligors
on the Collateral as Bank of America may reasonably request, and (iv) to
deliver and assign to Bank of America additional Collateral (including, but not
limited to, cash Collateral) of a value and condition satisfactory to Bank 

of America in Bank of America’s
sole judgment as additional security for the Liabilities if Bank of America feels
insecure for any reason.

(c) Bank of America shall be
deemed to have exercised reasonable care in the custody and preservation of the
Collateral if Bank of America takes such action as Applicant shall request in
writing, but Bank of America’s failure to comply with any such request shall
not be a failure to exercise reasonable care. If Applicant does not make a
request in writing, Bank of America’s failure to preserve or protect any rights
to the Collateral shall not be a failure to exercise reasonable care in the
custody and preservation of the Collateral.

(d) Bank of America may,
whether before or after the occurrence of any Deposit Event referred to in
Section 3 hereof, at Bank of America’s sole discretion and without notice to
Applicant, take any or all of the following actions: (i) transfer all or any
part of the Collateral into Bank of America’s name or the name of Bank of
America’s nominee, with or without disclosing that such Collateral is subject
to the security interest under this Agreement, (ii) notify any obligors of any
of the Collateral to make payment to Bank of America of any amounts due or to
become due, (iii) enforce collection of any of the Collateral by suit or
otherwise, or surrender, release or exchange all or any part of the Collateral,
(iv) take control of any proceeds (including insurance proceeds) of any of the Collateral,
and (v) extend or renew any obligation of any obligor to the Collateral, or
grant releases, compromises or indulgences for any obligation of any obligor to
the Collateral.

The security interest granted
by this Section shall continue until such time as all Liabilities have been
paid in full and discharged.

7.     Risks. Applicant agrees that any action or omission
by Bank of America under or in connection with the Letter of Credit or any
Items, documents or Property shall, unless in breach of good faith, be binding
on Applicant and shall not put Bank of America under any resulting liability to
Applicant; and Applicant will indemnify Bank of America and hold Bank of
America harmless from and against each and every claim, demand, liability,
loss, cost or expense (including, but not limited to, reasonable attorneys’
fees and allocated costs of in-house counsel, and legal costs) to which Bank of
America may be subjected or which Bank of America may incur by reason of any
such action or omission, or by reason of any action taken pursuant to this
Application and Agreement, unless in breach of good faith. In no event shall
Bank of America be liable for incidental, consequential or special damages.

8.     Exculpation. In addition to the exculpatory provisions
contained in the UCP, Bank of America or Bank of America’s correspondents shall
not be responsible for and Applicant’s obligation to reimburse Bank of America
shall not be affected by: (a) the time, place, manner, or order in which
shipment is made, or partial or incomplete shipment or insurance of any
property or any risk connected with insurance, delay in arrival or failure to
arrive of any property or any relative documents, delay in giving or failure to
give notice of arrival of goods or any other notice, (b) compliance with any
laws, customs or regulations in effect in countries of negotiation or payment
of the Letter of Credit, (c) failure of any Item to refer adequately to the
Letter of Credit, or failure of documents to accompany any Item at negotiation/
payment/acceptance, or failure of any person to note the amount of any Item on
the reverse of the Letter of Credit or to surrender or to take up the Letter of
Credit or to forward required documents with Items, each of which provisions,
if contained in the Letter of Credit itself, it is agreed may be waived by Bank
of America, (d) any irregularity in connection with shipment, including any
default, oversight or fraud by the shipper and/or any others in connection with
the Property or documents or the shipment, non-shipment or transmittal
thereof,(e) any refusal by Bank of America to honor Items because of an
applicable law, regulation or ruling of any governmental agency whether valid
or invalid, or now or hereafter in effect, (f) acts or the failure to act of
Bank of America’s agents or correspondents including, but not limited to, their
failure to pay Items because of any law, decree, regulation, ruling, or
interpretation of any governmental agency (domestic or

foreign), or (g) the identity
of any transferee of the Letter of Credit or the sufficiency of the transfer if
the Letter of Credit is transferable.

9.     Indemnities.

(a) Applicant will indemnify
and hold Bank of America (such term to include for purposes of this Section 9
affiliates of Bank of America and its affiliates’ officers, directors, employees
and agents) harmless from and against (i) all loss, claim, expense or damage arising
out of the issuance by Bank of America, or any other action taken by any such indemnified
party in connection with the Letter of Credit including any loss or damage arising
in whole or in part from the negligence of the party seeking indemnification,
but excluding any loss or damage resulting from the gross negligence or willful
misconduct of the party seeking indemnification, and (ii) all costs and
expenses (including reasonable attorneys’ fees and allocated costs of in-house
counsel and legal expenses) of all claims or legal proceedings arising out of
the issuance by Bank of America of the Letter of Credit or incident to the
collection of amounts owed by Applicant hereunder or the enforcement of the
rights of Bank of America hereunder, including, without limitation, legal
proceedings related to any court order, injunction, or other process or decree
restraining or seeking to restrain Bank of America from paying any amount under
the Letter of Credit. Additionally, Applicant will indemnify and hold Bank of
America harmless from and against all claims, losses, damages, suits, costs or
expenses (including reasonable attorneys’ fees and allocated costs of in-house
counsel, and legal expenses) arising out of (i) Bank of America’s acceptance of
telecommunication instructions in connection with the Letter of Credit, including
but not limited to, telephonic instructions in connection with any waiver of discrepancies,
or (ii) Applicant’s failure to timely procure licenses or comply with applicable
laws, regulations or rules, or any other conduct or failure of Applicant
relating to or affecting the Letter of Credit.

(b) If any award, judgment or
order is given or made for the payment of any amount due under this Application
and Agreement and such award, judgment or order is expressed in a currency
other than the currency required under this Application and Agreement,
Applicant shall indemnify Bank of America against and hold Bank of America
harmless from all loss and damage incurred by Bank of America as a result of
any variation in rates of exchange between the date of such award, judgment or
order and the date of payment (or, in the case of partial payments, the date of
each partial payment thereof) in the required currency

(c) Each of these indemnities
shall constitute an obligation separate and independent from the other
obligations contained in this Application and Agreement, shall give rise to a
separate and independent cause of action, shall apply irrespective of any
indulgence granted by Bank of America from time to time, and shall continue in
full force and effect notwithstanding any award, judgment or order for a
liquidated sum in respect of an amount due under this Application and
Agreement.

10.  Governing Law and Rules

(a) The Letter of Credit will
be subject to and governed by the most current version of the International
Chamber of Commerce publication “The Uniform Customs and Practice for
Documentary Credits” which is in effect on the date the Letter of Credit is
issued. The Letter of Credit will also be subject to, and this Application and
Agreement will be governed by, the laws of the state in the United States where
Bank of America issues the Letter of Credit; provided, however, that, with
respect to the Letter of Credit, Bank of America may agree, on Applicant’s
request, to specify in the Letter of Credit, a different state’s laws as the
governing law. In any event, each choice of law shall be without reference to
the chosen state’s provisions regarding conflicts laws.

(b) To the extent permissible
under applicable law, the Applicant hereby waives any rights it may have to a
trial by jury of any dispute arising under or relating to this Agreement or the
Credit, and agrees that any such dispute shall be tried before a judge sitting
without a jury.

11.  Applicant Status. The word “Applicant” in this Application and
Agreement refers to each signer (other than Bank of America) of this
Application and Agreement. If this Application and Agreement is signed by more
than one Applicant, their obligations under this Application and Agreement
shall be joint and several. If there is more than one Applicant, the Letter of
Credit will be issued in the name of the Account party listed on the Application,
or if no such party is listed, the first Applicant named on the Application
(the “Designated Party”). Applicant further agrees that the Designated Party
shall have the exclusive right to issue all instructions relating to the Letter
of Credit including (without limitation) instructions as to the disposition of
documents and any unutilized funds, waiver of discrepancies, and to agree with
the Bank upon any amendments, modifications, extensions, renewals, or increases
in the Letter of Credit or the further financing or refinancing of any
transaction effected thereunder, irrespective of whether the same may now or
hereafter affect its rights or those of its legal representatives, heirs,
successors or assigns. The Designated Party shall have specimen signatures on
file with the Bank and the Bank may give any notices to the Designated Party
without notice to any other person listed as an Applicant on the Application.

12.  Representations and Warranties.

(a)Applicant represents and
warrants to Bank of America that it has the authority to enter into this
Application and Agreement and that such agreement will not violate or conflict
with any of the provisions of its constituent documents or any other agreement
or undertaking to which it is a party or to which it is bound.

(b) Applicant represents and
warrants to Bank of America that Applicant has obtained all licenses and other
governmental approvals required for the import, export, shipping, storage of,
financing of or payment for goods and the documents described in the Letter of
Credit. Applicant also represents and warrants to Bank of America that it has
paid all applicable levies, duties or other taxes imposed in connection with
the Letter of Credit (other than net income taxes payable by the Bank). Without
limiting the generality of the foregoing, Applicant further expressly
represents and warrants to Bank of America that the transactions underlying the
Letter of Credit are not prohibited under the Foreign Assets Control
Regulations of the United States Treasury Department and any importation
covered by the Letter of Credit conforms in every respect with all existing
applicable U.S. and state laws.

13.  Miscellaneous.

(a)
No delay, extension of time, renewal, compromise or other indulgence which may
occur or be granted by Bank of America shall impair the rights and powers of
Bank of America hereunder. Bank of America shall not be deemed to have waived
any of its rights hereunder, unless Bank of America shall have signed such
waiver in writing.

(b) Any notice from Bank of
America to Applicant shall be deemed given when mailed, postage paid, or when
delivered to a courier, fee paid by shipper, addressed to Applicant at the
address furnished by Applicant to Bank of America pursuant to this Application,
or when confirmed by electronic confirmation to Bank of America. as having been
delivered via facsimile or other teletransmission. Any notice from Applicant to
Bank of America. shall be sent to the address of Bank of America specified by
Bank of America to Applicant and shall be effective upon receipt by Bank of
America.

(c) Each provision of this
Application and Agreement shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this
Application and Agreement shall be prohibited by or invalid under applicable
law, such provision shall be ineffective only to the extent of such prohibition
or invalidity, without invalidating the remainder of such provision or the
remaining provisions of this Application and Agreement.

(d) Any and all payments made
to Bank of America hereunder shall be made free and clear of and without
deduction for any present or future taxes, levies, imposts, deductions, charges
or withholdings, and all liabilities with respect thereto, excluding income or
franchise taxes imposed by the United States and any political subdivisions
thereof (such nonexcluded taxes being herein called “Taxes”). If Applicant
shall be required by law to deduct any Taxes from or in respect of any sum
payable hereunder, (i) the sum payable shall be increased as may be necessary
so that after making all required deductions (including deductions applicable
to additional sums payable under this Section 13(d)), Bank of America shall
receive an amount equal to the sum Bank of America would have received had no such
deductions been made, (ii) Applicant shall make such deductions, and (iii)
Applicant shall pay the full amount deducted to the relevant authority in
accordance with applicable law. Applicant will indemnify Bank of America for
the full amount of Taxes (including, without limitation, any Taxes imposed by
any jurisdiction on amounts payable under this Section 13(d)) paid by Bank of
America and any liability (including penalties, interest and expenses) arising
therefrom or with respect thereto, whether or not such Taxes were correctly or
legally asserted. This indemnification shall be made within 30 days from the
date Bank of America makes written demand therefor. Within 30 days after the
date of any payment of Taxes, Applicant will furnish to Bank of America the
original or a certified copy of a receipt evidencing payment thereof.

(e) This Application and
Agreement shall be binding upon Applicant, its successors and assigns, and
shall insure to the benefit of Bank of America, its successors, transferees and
assigns; provided that any assignment by Applicant of any of its rights or
obligations under this Application and Agreement without the prior written
consent of Bank of America shall be void.

(f) If the Applicant requests
Bank of America to increase the amount of the Letter of Credit, extend or renew
the Letter of Credit, otherwise modify the terms of the Letter of Credit, or
finance or refinance any transaction effected under the Letter of Credit,
Applicant agrees that this Agreement shall continue to bind it with respect to
any action taken by Bank of America or any of Bank of America’s correspondents
in accordance with such increase, extension, renewal or other modification and
as to any transaction so financed or refinanced.

(g) Applicant understands that
the final form of the Letter of Credit may vary from the wording specified in
the Application, and Applicant authorizes Bank of America to make such changes,
not materially inconsistent with the Application, which Bank of America deems
necessary or appropriate. Applicant agrees that Bank may in its sole discretion
request any entity, including any banking center or office of Bank of America located
in a country different than the location where the Letter of Credit was issued,
to act as advising bank with regard to the Letter of Credit and any Items.

(h) Applicant shall pay Bank
of America for reasonable attorneys’ fees and allocated costs of in-house
counsel, and legal costs paid or incurred by Bank of America in connection with
this Agreement or the Letter of Credit (including, without limitation, the
defense by Bank of America of any proceeding initiated by the Applicant to
enjoin or restrain any drawing, payment or negotiation of the Letter of Credit
by Bank of America, even if the Applicant is awarded such relief, provided only
that Bank of America has acted in good faith in defending such action).

(i) In the event of any
change or modification, with the consent of Applicant, which consent may be
given by any means of submission acceptable to Bank of America, including,
without limitation, computer, facsimile, telephone or telex, relative to the
Letter of Credit or any instrument called for hereunder, including any waiver
made or in good faith believed by Bank of America to have been made by
Applicant of any term hereof or the noncompliance of any such instruments with
the terms of the Letter of Credit, this Application and Agreement shall be
binding upon Applicant with regard to the Letter of Credit as so changed or
modified, and to any action taken by Bank of America or any of its correspondents
relative thereto. No term or provision of this Application and Agreement can be
changed orally, but only in a writing and signed by Applicant and Bank of
America.

(j) Bank of America assumes
no liability or responsibility for the consequences arising out of delay and/or
loss in transit of any message, letter or documentation, or for delay,
mutilation or other error arising in the transmission of any teletransmission.

(k) If Applicant includes in
the Application any language describing events or conditions that would not be
possible for Bank of America to verify solely from the documents required to be
presented under the Letter of Credit, Applicant acknowledges and agrees that
Bank of America has no obligation to verify compliance with such requirements. NOTICE OF FINAL AGREEMENT. THIS WRITTEN AGREEMENT REPRESENTS
THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE
OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE
ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

APPLICANT

	
  Name of Company or
  Individual

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By, Authorized by
  (signature)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Telephone

  	
  (                      )

  	
  Fax

  	
  (                      )

  	
   

  
								

 

FOR OFFICE
USE ONLY

	
  

  	
   

  	
  o Trade
  Operations

  	
   

  	
   

  	
  Mail Code#

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  COMMISSION

  	
   

  	
  o Per
  Standard Fee Schedule

  	
  o Other

  	
   

  	
   

  	
  o Charge
  Banking Center

  
	
   

  	
   

  	
  o Charge
  Directly

  	
  o Commissions
  and Charges only

  	
  o Drawings,
  Commissions and Charges

  
													

 

	
  APPLICANT’S DDA ACCOUNT
  NUMBER:

  	
   

  	
  T/R #

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  REFERRING OFFICER (PRINTED NAME)

  	
   

  	
  PHONE NUMBER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  REFERRING OFFICER NUMBER

  	
  REFERRING OFFICER BANK NUMBER

  	
  REFERRING OFFICER COST CENTER NUMBER

  
	
   

  	
   

  	
   

  
	
  REFERRING OFFICER SOCIAL SECURITY NUMBER

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  APPROVING OFFICER (PRINTED NAME)

  	
   

  	
  PHONE NUMBER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  APPROVING OFFICER NUMBER

  	
  APPROVING OFFICER BANK NUMBER

  	
  APPROVING OFFICER COST CENTER NUMBER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  APPROVING OFFICER SOCIAL SECURITY NUMBER

  	
  APPROVING OFFICER SIGNATURE

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  APPROVING OFFICER INTEROFFICE ADDRESS

  
	
   

  
	
   

  
										

 

EXHIBIT III-B

FORM
OF L/C APPLICATION (STANDBY)

	
  

  	
  For Bank of America Use Only

  
	
   

  	
  L/C No.

  	
   

  
	
  Application
  and Agreement for Standby Letter of Credit

  	
   

  	
   

  
	
  TO: Bank of America, N.A.
  (“Bank of America”)

  	
   

  	
   

  

 

A.
Application.

	
  1.

  	
   

  	
  (“Applicant”) requests Bank of America to issue an irrevocable standby
  letter of

  
	
  credit (“Letter of Credit”) as follows:

  	
   

  	
   

  	
   

  
	
  o   Full text teletransmission

  	
  o   Airmail with brief
  preliminary teletransmission advice

  	
  o   Airmail

  	
  x   Courier

  
									

 

	
  2.

  	
  Applicant Address:

  	
  3.

  	
  For Account of (Name and address, if different from
  Applicant):

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

	
  4.

  	
  Advising Bank:

  	
  5.

  	
  In favor of (Beneficiary
  Name and Address):

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

	
  6.
  Amount:

  	
   

  	
  (

  	
   

  	
  )

  
	
   

  	
  (in words and
  figures)

  	
   

  	
   

  	
   

  	 

								

 

	
  Currency

  	
   

  
	
  (if left blank,
  U.S. Dollars)

  

 

	
  Expiration Date. Drafts to be drawn on and
  presented at Bank of America’s Address set forth in the Letter of Credit on
  or before:

  
	
  o

  	
  If this box is marked, Applicant authorizes Bank of
  America to effect payment of any sums due under this Application and
  Agreement by means of debiting Applicant’s account with Bank of America set
  forth below. This authorization does not effect the obligation of Applicant
  to pay such sums when due, if there are insufficient funds in such account to
  make such payment when due, or if Bank of America fails to debit the account,
  and this authorization does not affect any setoff rights of Bank of America
  at law or in equity. Applicant’s account number with Bank of America is __________________.

  
	
   

  	
   

  

 

7. Available by drafts drawn at sight on Bank of America when
accompanied by the following documentation:

a.       The
original Letter of Credit.

b.      The signed
statement of the Beneficiary worded as follows (state wording that is to appear
in the statement accompanying the draft; specify if such wording must be
exact):

8.           Special
Instructions:

B.
Agreement.

In consideration of Bank of
America’s issuing the Letter of Credit at the request of Applicant, Applicant
agrees to the following:

1.              Applicant Payments.

(a) Applicant shall pay Bank
of America, on demand, all amounts paid by Bank of America under or in respect
of the Letter of Credit.

(b) On each fee payment date,
so long as any undrawn amount of the Letter of Credit remains available,
Applicant shall pay Bank of America a Letter of Credit fee. The fee payment
date(s) shall be the date(s) as Applicant and Bank of America may agree, or in
the absence of such agreement, the fee payment date shall be the date on which
Bank of America issues the Letter of Credit. The fee shall be at such rate per
annum as Applicant and Bank of America may agree or, in the absence of such
agreement, at the rate customarily charged by Bank of America at the time such
fee is payable, based upon Applicant’s creditworthiness, as determined by Bank
of America in its sole discretion. The applicable Letter of Credit fee shall be
calculated and payable on the undrawn amount of the Letter of Credit as of each
fee payment date, and shall be for the period commencing on such fee payment
date and ending on the day preceding the next fee payment date (or the
expiration date of the Letter of Credit, as the case may be), both dates inclusive.
The Letter of Credit fee will be computed on the basis of a 360-day year and
actual days elapsed. Bank of America shall not be required to refund any
portion of the Letter of Credit fee paid for any period during which (a) the
Letter of Credit expires or otherwise terminates or (b) the undrawn amount of
the Letter of Credit is reduced by drawings or by amendment.

(c) Applicant shall pay Bank
of America, on demand, commissions and fees for amendments to, payments under,
extensions of or cancellation of the Letter of Credit, and other services in
the amounts Applicant and Bank of America may agree or, in the absence of such
agreement, in the amounts customarily charged by Bank of America on the date of
Bank of America’s demand.

(d) All payments and deposits
of any kind by Applicant under this Application and Agreement, including
prepayments, shall be made at the banking center or office Bank of America may
designate from time to time. Bank of America shall have no obligation to pay
Applicant interest on any such payment, prepayment or deposit made by Applicant
under this Application and Agreement.

(e)    (i) All payments and deposits by Applicant
under this Application and Agreement shall be in the currency in which the
Letter of Credit is payable, except that Bank of America may, at its option,
require payments and deposits by Applicant under this Application and Agreement
to be made in U.S. Dollars if the Letter of Credit is payable in a foreign
currency.

(ii) The amount of each
payment and each deposit by Applicant under this Application and Agreement in
U.S. Dollars for a Letter of Credit payable in a foreign currency shall be
determined by converting the relevant amount to U.S. Dollars at the Conversion
Rate in effect:

(A) with respect to each
payment under Section 1(a) of this Agreement, on the date the payment is made
by Bank of America under or in respect of the Letter of Credit; and

(B) with respect to each
payment not falling under the preceding clause (A) and each deposit, on the
date of Bank of America’s demand for such payment or deposit.

(iii) If a U.S. Dollar
deposit by Applicant under this Application and Agreement for a Letter of
Credit payable in a foreign currency becomes less than the U.S. Dollar
equivalent of the undrawn amount of the Letter of Credit because of any
variation in rates of exchange, Applicant shall deposit with Bank of America,
on demand, additional amounts in U.S. Dollars so that the total amount
deposited by Applicant under this Application and Agreement is not less than
the U.S. Dollar equivalent of the undrawn amount of the Letter of Credit,
determined by using the Conversion Rate on the date of Bank of America’s latest
demand.

(iv) “Conversion Rate” means
the rate quoted by Bank of America for the purchase from Bank of America of the
relevant foreign currency with U.S. Dollars.

(f) Applicant shall reimburse
or compensate Bank of America, on demand, for all costs incurred, losses
suffered and payments made by Bank of America which are applied or allocated by
Bank of America to the Letter of Credit (as determined by Bank of America) by
reason of any and all present or future reserve, capital, deposit, assessment
or similar requirements against (or against any class of or change in or in the
amount of)  assets or liabilities of, or
commitments or extensions of credit by, Bank of America.

(g) Applicant shall pay
interest, on demand, on any amount not paid when due under this Application and
Agreement from the due date until payment in full at a rate per annum equal to
the rate of interest publicly announced from time to time by Bank of America as
its prime rate, plus three percentage points (not to exceed the maximum rate
permitted by applicable law). The prime rate is set by Bank of America based on
various factors, including Bank of America’s costs and desired return, general
economic conditions and other factors, and is used as a reference point for
pricing some credits. Bank of America may price credit at, above or below the
prime rate. Any change in Bank of America’s prime rate shall take effect at the
opening of business on the day specified in Bank of America’s public
announcement of a change in Bank of America’s prime rate.  Interest will be computed on the basis of a
360-day year and actual days elapsed.

2.     Deposit Events. Upon the occurrence of any of the following
events, Applicant shall deposit with Bank of America, on demand (except that
such demand shall not be required in the event of an occurrence described in
(b) below) and as cash security for Applicant’s obligations to Bank of America
under this Application and Agreement, an amount equal to the undrawn amount of
the Letter of Credit:

(a) Applicant defaults under
any provision of this Application and Agreement;

(b) Any bankruptcy or similar
proceeding is commenced with respect to Applicant;

(c) Any default occurs under
any other agreement involving the borrowing of money or the extension of credit
under which Applicant may be obligated as borrower, installment purchaser or
guarantor, if such default consists of the failure to pay any indebt-edness
when due or if such default permits or causes the acceleration of any
indebtedness or the termination of any commitment to lend or to extend credit;

(d) Applicant or any of its
affiliates defaults on any other obligation to Bank of America;  

(e) In the opinion of Bank of
America, any material adverse change occurs in Applicant’s business,
operations, financial condition or ability to perform its obligations under
this Application and Agreement;  

(f) Any guarantee of Applicant’s
obligations under this Application and Agreement terminates, is revoked or its
validity is contested by the guarantor, or any of the events set forth in (b)
through (e) above occur with respect to the guarantor rather than the
Applicant; or

(g) Any court order,
injunction or other legal process is issued restraining or seek-ing to restrain
drawing or payment under the Letter of Credit.

3.     Charge to Accounts. If Bank of America is unable to debit the
account, if any, specified on the Application, Applicant authorizes Bank of
America to charge any of Applicant’s accounts with Bank of America, or any
affiliate of Bank of America, for all amounts then due and payable to Bank of
America under this Application and Agreement.

4.     Indemnities.

(a) Applicant will indemnify
and hold Bank of America (such term to include for purposes of this Section 4
affiliates of Bank of America and its affiliates’ officers, directors,
employees and agents) harmless from and against (i) all loss or damage arising
out of the issuance by Bank of America, or any other action taken by any such
indemnified party in connection with the Letter of Credit including any loss or
damage arising in whole or in part from the negligence of the party seeking
indemnification, but excluding any loss or damage resulting from the gross
negligence or willful misconduct of the party seeking indemnification, and (ii)
all costs and expenses (including reasonable attorneys’ fees and allocated
costs of in-house counsel and legal expenses) of all claims or legal
proceedings arising out of the issuance by Bank of America of the Letter of
Credit or incident to the collection of amounts owed by Applicant hereunder or
the enforcement of the rights of Bank of America hereunder, including, without
limitation, legal proceedings related to any court order, injunction, or other
process or decree restraining or seeking to restrain Bank of America from
paying any amount under the Letter of Credit. Additionally, Applicant will
indemnify and hold Bank of America harmless from and against all claims,
losses, damages, suits, costs or expenses (including reasonable attorneys’ fees
and allocated costs of in-house counsel, and legal expenses) arising out of
Applicant’s failure to timely procure licenses or comply with applicable laws,
regulations or rules, or any other conduct or failure of Applicant relating to
or affecting the Letter of Credit.

(b) If any award, judgment or
order is given or made for the payment of any amount due under this Application
and Agreement and such award, judgment or order is expressed in a currency
other than the currency required under this Application and Agreement,
Applicant shall indemnify Bank of America against and hold Bank of America
harmless from all loss and damage incurred by Bank of America as a result of
any variation in rates of exchange between the date of such award, judgment or
order and the date of payment (or, in the case of partial payments, the date of
each partial payment thereof) in the required currency

(c) Each of these indemnities
shall constitute an obligation separate and independent from the other
obligations contained in this Application and Agreement, shall give rise to a
separate and independent cause of action, shall apply irrespective of any
indulgence granted by Bank of America from time to time, and shall continue in
full force and effect notwithstanding any award, judgment or order for a
liquidated sum in respect of an amount due under this Application and
Agreement.

5.     Governing Law and Rules. The Letter of Credit will be subject to, and
performance under the Letter of Credit by Bank of America, its correspondents,
and the beneficiary will be governed by, the rules of the “International
Standby Practices 1998” (“ISP98”) or such later revision as may be published by
the Institute of International Banking Law & Practice, subject to
applicable laws. The Letter of Credit and this Application and Agreement shall
be governed by and construed under the laws of the state in the United States
where Bank of America issues the Letter of Credit, without reference to that
state’s provisions regarding conflicts of laws, to the jurisdiction of which
the parties hereto submit. If the Letter of Credit is not issued in any state,
the law of the State of California will govern.

6.     Applicant Status. The word “Applicant” in this Application and
Agreement refers to each signer (other than Bank of America) of this
Application and Agreement. If this Application and Agreement is signed by more
than one Applicant, their obligations under this Application and Agreement
shall be joint and several.

7.     Representations and Warranties. Applicant represents and warrants to Bank of
America that it has the authority to enter into this Application and Agreement
and that such Agreement will not violate or conflict with any of the provisions
of its constituent documents or any other agreement or undertaking to which it
is a party or to which it is bound.

8.     Miscellaneous.

(a) No delay, extension of
time, renewal, compromise or other indulgence which may occur or be granted by
Bank of America shall impair the rights and powers of Bank of America
hereunder. Bank of America shall not be deemed to have waived any of its rights
hereunder, unless Bank of America shall have signed such waiver in writing.

(b) Any notice from Bank of
America to Applicant shall be sent to the address of Applicant set forth on the
Application and shall be effective upon receipt by Applicant. Any notice from
Applicant to Bank of America shall be sent to the address of Bank of America specified
by Bank of America to Applicant and shall be effective upon receipt by Bank of
America.

(c) Each provision of this
Application and Agreement shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this
Application and Agreement shall be prohibited by or invalid under applicable
law, such provision shall be ineffective only to the extent of such prohibition
or invalidity, without invalidating the remainder of such provision or the
remaining provisions of this Application and Agreement.

(d) Any and all payments made
to Bank of America hereunder shall be made free and clear of and without
deduction for any present or future taxes, levies, imposts, deductions, charges
or withholdings, and all liabilities with respect thereto, excluding income or
franchise taxes imposed by the United States and any political subdivisions
thereof (such nonexcluded taxes being herein called “Taxes”). If Applicant
shall be required by law to deduct any Taxes from or in respect of any sum
payable hereunder, (i) the sum payable shall be increased as may be necessary
so that after making all required deductions 
(including deductions applicable to additional sums payable under this
Section 8(d)), Bank of America shall receive an amount equal to the sum Bank of
America would have received had no such deductions been made, (ii) Applicant
shall make such deductions, and (iii) Applicant shall pay the full amount
deducted to the relevant authority in accordance with applicable law. Applicant
will indemnify Bank of America for the full amount of Taxes (including, without
limitation, any Taxes imposed by any jurisdiction on amounts payable under this
Section 8(d)) paid by Bank of America and any liability (including penalties,
interest and expenses) arising therefrom or with respect thereto, whether or
not such Taxes were correctly or legally asserted. This indemnification shall
be made within 30 days from the date Bank of America makes written demand
therefor. Within 30 days after the date of any payment of Taxes, Applicant will
furnish to Bank of America the original or a certified copy of a receipt
evidencing payment thereof.

(e) This Application and
Agreement shall be binding upon Applicant, its successors and assigns, and
shall inure to the benefit of Bank of America, its successors, transferees and
assigns; provided that any assignment by Applicant of any of its rights or
obligations under this Application and Agreement without the prior written
consent of Bank of America shall be void.

(f) Unless the Applicant has
specified in the Application that the wording of the Letter of Credit must be
exact, Applicant understands that the final form of the Letter of Credit may
vary from the wording specified in the Application, and Applicant authorizes
Bank of America to make such changes, not materially inconsistent with the
Application,  which Bank of America deems
necessary or appropriate. Applicant understands that the risk to Applicant is
greater if Applicant requests a standby letter of credit which requires only a
draft, rather than a standby letter of credit which requires supporting
documentation.   

(g) In the event of any
change or modification, with the consent of Applicant, which consent may be
given by any means of submission acceptable to Bank of America, including,
without limitation, computer, facsimile or telex, relative to the Letter of
Credit or any instrument called for hereunder, including any waiver made or in
good faith believed by Bank of America to have been made by Applicant of any
term hereof or the noncompliance of any such instruments with the terms of the
Letter of Credit, this Application and Agreement shall be binding upon
Applicant with regard to the Letter of Credit as so changed or modified, and to
any action taken by Bank of America or any of its correspondents relative
thereto. No term or provision of this Application and Agreement can be changed
orally, but only in a writing and signed by Applicant and Bank of America.

(h) Bank of America assumes
no liability or responsibility for the consequences arising out of delay and/or
loss in transit of any message, letter or documentation, or for delay,
mutilation or other error arising in the transmission of any teletransmission.
In no event shall Bank of America be liable for any special, indirect,
consequential or exemplary damages.   

(i) If Applicant includes in
the Application any language describing events or conditions that would not be
possible for Bank of America to verify solely from the documents required to be
presented under the Letter of Credit, Applicant acknowledges and agrees that
Bank of America has no obligation to verify compliance with such requirements.

NOTICE OF
FINAL AGREEMENT. THIS WRITTEN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN
THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS
OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.

This
Application and Agreement is executed by Applicant on                  .

 

 

	
  

  
	
  Name of Applicant

  
	
   

  
	
  By:

  	
  Title

  
	
   

  
	
  Name of Applicant (if any, co-signing with the
  Applicant above)

  
	
   

  
	
   

  
	
  By:

  	
  Title

  
	
   

  
	
  (WHERE SPECIMEN SIGNATURES OF THE APPLICANT NAMED
  ABOVE ARE NOT ON FILE WITH BANK OF AMERICA, THE FOLOWING SIGNATURE
  VERIFICATION IS REQUIRED.)

  
	
   

  
	
  The above signature of an officer, partner or agent
  of each Applicant indicated above confirms to that on file with us and such
  officer, partner or agent is fully authorized to sign this Agreement for such
  Applicant.

  
	
   

  
	
   

  	
  Bank of America, N.A.

  
	
  By:

  	
  BANK (Full Name)

  	
  (Bank Address)

  
	
   

  
	
  Authorized Signature/Title (Specimen signature of
  the signer must be on file with Bank of America)

  
	
  00-35-0521NSBW           12-2000

  
				

 

FOR OFFICE USE ONLY

	
  

  	
  o   Trade
  Operations

  	
   

  	
   

  	
  Mail Code#

  	
   

  
	
   

  	
   

  
	
  COMMISSION

  	
  o   Per
  Standard Fee Schedule

  	
  o   Other

  	
   

  	
   

  	
  o   Charge
  Banking Center

  
	
   

  	
  o   Charge
  Directly

  	
  o   Commissions
  and Charges only

  	
  o   Drawings,
  Commissions and Charges

  
	
   

  
	
  APPROVING OFFICER (Printed Name)

  	
  PHONE #

  
	
   

  	
   

  
	
  OFFICER TELEPHONE #

  	
  FAX #

  
	
   

  	
   

  
	
  DDA APPLICANT A/C #

  	
   

  
	
   

  	
   

  
	
  APPROVING BANK OFFICER SIGNATURE

  	
   

  
	
   

  	
   

  
	
  OFFICER – INTEROFFICE ADDRESS

  	
   

  
	
   

  	
   

  
	
  OFFICER NUMBER AND COST CENTER NUMBER

  	
   

  
	
   

  	
   

  
	
   

  	
  Bank of America, N.A.

  
											

 

EXHIBIT IV

[FORM
OF] TERM NOTE

MAIDENFORM, INC.

	
  $

  	
  (1)

  	
   

  	
  (2)

  
	
   

  	
   

  	
  {Issuance date}

  

 

FOR VALUE RECEIVED, MAIDENFORM, INC., a New York
corporation (“Company”), promises to pay to                       (3)
(“Payee”)
or its registered assigns the principal amount of                                 (4)  ($[                                          ]).  The principal amount of this Note shall be
payable on the dates and in the amounts specified in the Credit Agreement
referred to below; 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 June  15, 2007 by and among Company, Maidenform Brands, Inc., a
Delaware corporation, the financial institutions listed therein as Lenders, and
Bank of America, N.A., 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

(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.

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.

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.

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.

	
  

  	
  MAIDENFORM, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

EXHIBIT V

[FORM
OF] REVOLVING NOTE

MAIDENFORM, INC.

	
  $

  	
  (1)

  	
   

  	
  (2)

  
	
   

  	
   

  	
  {Issuance date}

  

 

FOR VALUE RECEIVED, MAIDENFORM, INC., a New York
corporation (“Company”), promises to pay to                   (3)
(“Payee”)
or its registered assigns, the lesser of (x)                                (4)
($[                           ])
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 June  15,  2007 by and
among Company, Maidenform Brands, Inc., a Delaware corporation, the financial
institutions listed therein as Lenders, and Bank of America, N.A., 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

(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.

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.

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.

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.

	
  

  	
  MAIDENFORM, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

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

  	
   

  
	
     

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
     

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
     

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

EXHIBIT VI

[FORM
OF] SWING LINE NOTE

MAIDENFORM, INC.

	
  $

  	
  (1)

  	
   

  	
  (2)

  
	
   

  	
   

  	
  {Issuance date}

  

 

FOR VALUE RECEIVED, MAIDENFORM, INC., a New York
corporation (“Company”), promises to pay to                              
(“Payee”)
or its registered assigns, the lesser of 
(x)                   (3)
($[                              ])
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 June 15, 2007
by and among Company, Maidenform Brands, Inc., a Delaware corporation, the
financial institutions listed therein as Lenders, and Bank of America, N.A., 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.

(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.

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.

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.

	
  

  	
  MAIDENFORM, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

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

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
    

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
      

  	
   

  	
   

  	
   

  	
    

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
    

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

EXHIBIT VII

[FORM OF] COMPLIANCE CERTIFICATE

MAIDENFORM, INC.

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
Credit Agreement dated as of June [__], 2007, 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 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 Bank of America, N.A., 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 Holdings and its Subsidiaries during
the accounting period covered by the attached financial statements.

(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 and Holdings each has been in
compliance with each of the covenants in Section 7 of the 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 or Holdings has taken, is taking, or proposes to
take with respect to each such condition or event.

(5)   During the accounting period covered by the
attached financial statements, [Option A: Company has not made Restricted
Junior Payments to Holdings] [Option B: Company has made Restricted Junior
Payments to Holdings [for the purposes described in subclauses (a), (b),
and (c) of subsection 7.5(i) of the Credit Agreement, in each case in
compliance with such subclauses (a), (b) and (c),] [and] [to the
extent necessary to permit one or more Stock Repurchases, in each case in
compliance with subclauses (a), (b) and (c) of subsection 7.5(ii)
of the Credit Agreement].

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
Credit Agreement.

 

	
  

  	
  MAIDENFORM, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

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 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.

  	
  Rating agency
  fees paid to obtain or maintain ratings on Indebtedness of Holdings and its
  Subsidiaries:

  	
   

  	
  $                              

  
	
  9.

  	
  Net cash charges
  incurred in connection with the Headquarters office relocation and sale:

  	
   

  	
  $                              

  
	
  10.

  	
  Any non-cash
  charges, adjustments (which may be a negative number, in the case of positive
  adjustments to Consolidated Net Income) and expenses after the Closing Date
  relating to the application of purchase accounting:

  	
   

  	
  $                              

  
	
  11.

  	
  Fees, costs, and
  expenses incurred on or prior to or following the Closing Date in connection
  with the negotiation, execution and delivery and amendment or modification of
  the Credit Agreement and the other Loan Documents:

  	
   

  	
  $                              

  

 

 

	
  12.

  	
  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 and
  which represent the reversal of any accrual of, or cash reserve for, anticipated
  cash charges in any prior period):

  	
   

  	
  $                              

  
	
  13.

  	
  Consolidated
  EBITDA (1+2+3+4+5+6+7+8+9+10+11-12):

  	
   

  	
  $                              

  
	
  14.

  	
  Consolidated
  Capital Expenditures that are unfinanced or financed with proceeds of the
  Loans:

  	
   

  	
  $                              

  
	
   

  	
   

  	
   

  	
   

  
	
  Consolidated
  Fixed Charges:

  	
   

  	
   

  
	
  15.

  	
  Consolidated
  Cash Interest Expense:

  	
   

  	
  $                              

  
	
  16.

  	
  Scheduled
  principal payments in respect of Consolidated Total Debt (excluding the
  aggregate amount of all rents paid or payable under all Capital Leases to
  which Holdings or any of its Subsidiaries is a party as lessee):

  	
   

  	
  $                              

  
	
  17.

  	
  Federal, state
  and local income taxes actually paid to any Governmental Authority during
  such period (whether or not payable in respect of such period), calculated so
  as to take into account all net operating loss carry-forwards, credits and
  other tax benefits available to Holdings and its Subsidiaries:

  	
   

  	
  $                              

  
	
  18.

  	
  Restricted
  Junior Payments other than Restricted Junior Payments described in clauses
  (i) and (ii) of the definition thereof, made within 10 Business Days of the
  making of an Incremental Term Loan and funded directly by the proceeds of
  such Incremental Term Loan):

  	
   

  	
  $                              

  
	
  19.

  	
  Consolidated
  Fixed Charges (15+16+17+18):

  	
   

  	
  $                              

  
	
  20.

  	
  Fixed Charge
  Coverage Ratio (13)-(14):(19):

  	
   

  	
          :1.00

  
	
  21.

  	
  Minimum ratio
  required under subsection 7.6A:

  	
   

  	
  1.25:1.00

  
	
   

  	
   

  	
   

  	
   

  
	
  B.

  	
  Maximum
  Leverage Ratio

  	
   

  	
   

  
	
  1.

  	
  Consolidated
  Total Debt:

  	
   

  	
  $                              

  

 

 

	
  2.

  	
  Consolidated EBITDA (A.13 above):

  	
   

  	
  $                              

  
	
  3.

  	
  Consolidated Leverage Ratio (1):(2):

  	
   

  	
          :1.00

  
	
  4.

  	
  Maximum ratio permitted under subsection 7.6B:

  	
   

  	
  4.00:1.00

  
	
   

  	
   

  	
   

  	
   

  
	
  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:

  	
   

  	
  $                              

  
	
  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):

  	
   

  	
  $                              

  

 

D.   Stock Repurchases

	
  Stock

  Repurchase

  Date

  	
   

  	
  Amount of

  Stock

  Repurchase

  	
   

  	
  Aggregate Amount of

  Stock Repurchases as

  of the Stock

  Repurchase Date

  (maximum amount

  permitted under

  subsection 7.5 is

  $25,000,000)

  	
   

  	
  Consolidated

  Leverage Ratio

  (maximum ratio

  permitted under

  subsection 7.5 is

  3.50:1:00)

  	
   

  	
  Revolving Loan

  Commitment minus

  Total Utilization of

  Revolving Loan

  Commitments as of the

  Stock Repurchase Date

  (minimum amount

  permitted under

  subsection 7.5 is

  $25,000,000

  
	
   

  	
   

  	
  $____

  	
   

  	
  $____

  	
   

  	
  ____:1.00

  	
   

  	
  $____

  
	
   

  	
   

  	
  $____

  	
   

  	
  $____

  	
   

  	
  ____:1.00

  	
   

  	
  $____

  
	
   

  	
   

  	
  $____

  	
   

  	
  $____

  	
   

  	
  ____:1.00

  	
   

  	
  $____

  
	
   

  	
   

  	
  $____

  	
   

  	
  $____

  	
   

  	
  ____:1.00

  	
   

  	
  $____

  
	
   

  	
   

  	
  $____

  	
   

  	
  $____

  	
   

  	
  ____:1.00

  	
   

  	
  $____

  

 

 

EXHIBIT VIII

MATTERS
TO BE COVERED BY OPINION OF COMPANY COUNSEL

Capitalized terms used herein shall have the meanings given them in the
Credit Agreement for Maidenform, Inc. (“Company”) and
Maidenform Brands, Inc. (“Holdings”).  “Opinion Parties”
means, collectively, Company, Holdings and each of their Domestic
Subsidiaries.  “Principal
Documents” means, collectively, each of the following:

Credit Agreement

Notes

Security Agreement

Guaranty

North Carolina mortgage

Grant of Copyright
Security Interest

Grant of Patent Security
Interest

Grant of Trademark
Security Interest

Deposit Account Control Agreement(s)

1.                                       Each
Opinion Party is a                               
that is validly existing and in good standing under the laws of the State of                             .

2.                                       Each
Opinion Party has the                        
power and authority to execute and deliver the Principal Documents to which it
is a party, to perform its obligations thereunder and to carry on its business
as now being conducted and as currently proposed to be conducted.

3.                                       Each
of the Principal Documents to which any Opinion Party is a party has been duly
authorized, executed and delivered by such Opinion Party.

4.                                       Each
Principal Document to which any Opinion Party is a party constitutes the valid
and binding obligation of such Opinion Party enforceable against such Opinion
Party in accordance with its terms.

5.                                       The
execution, delivery and performance by each Opinion Party of the Principal
Documents to which it is a party, and the performance by such Opinion Party of
its obligations under such Principal Documents, do not and will not:

(a)                                  violate
any provision of the                         
or                                 
of any Opinion Party or any other issuer of Pledged Interests (as defined
below); or

(b)                                 breach
or result in a default under, result in the maturing of any indebtedness or
result in the creation of any lien or security interest pursuant to, any
indenture, mortgage, deed of trust, promissory note or other material agreement
to which any Opinion Party is a party or by which it or any of its properties
are bound; or

(c)                                  result
in a violation of any law, rule, regulation, judgment, order, decree,
determination, or award of any court or governmental authority which is now in
effect and applicable to any Opinion Party or any of its properties.

6.                                       Except
as have been obtained or completed, no consent, approval, waiver, license,
authorization or action by or filing with any court or governmental authority
or any third party is or was required for the execution and delivery by any
Opinion Party of any of the Principal Documents or the performance by any
Opinion Party of its obligations under any of the Principal Documents.

7.                                       To
our knowledge after having made due inquiry with respect thereto, there are no
actions, suits or proceedings pending or threatened against any Opinion Party
at law or in equity, before any arbitrator or before or by any governmental
department, commission, board, bureau, agency or instrumentality which question
the validity of any Principal Document or which could reasonably be expected
to, individually or in the aggregate, materially and adversely affect the
properties, business, prospects, profits or condition (financial or otherwise)
of any Opinion Party or the ability of any Opinion Party to comply with or
perform the terms of the Principal Documents.

8.                                       No
Opinion Party is an “investment company” within the meaning of the Investment
Company Act of 1940, as amended (the “ICA”) or a
company “controlled” by an “investment company” within the meaning of the ICA.

9.                                       The
extension, arranging and obtaining of the credit represented by the Principal
Documents do not result in any violation of Regulation T, U or X of the Board
of Governors of the Federal Reserve System.

10.                                 The
Security Agreement creates a valid security interest, as security for the
Secured Obligations (as defined therein), in that portion of the “Collateral”
(as defined therein) in which a security interest can be created under the
Uniform Commercial Code as in effect in the State of New York.

11.                                 Upon
the filing of the Form UCC-1 Financing Statements attached [hereto] as Exhibits
            in the
Office of the Secretary of State of                               ,
the Administrative Agent will have a perfected security interest in that
portion of the “Collateral” (as defined in the Security Agreement) of each
Opinion Party in which a security interest can be perfected by the filing of a
financing statement under the Uniform Commercial Code as in effect in the State
of                           .

12.                                 Assuming
that certificates evidencing all of the Pledged Equity (as defined in the
Security Agreement) identified on Schedule 6 of the Security Agreement as of
the date hereof (the “Pledged Interests”),
in each case accompanied by instruments of transfer in blank duly executed,
have been delivered on or prior to the date hereof to the Administrative Agent,
and have been continuously held by the Administrative Agent since such
delivery, in each case in the State of New York, (i) the security interest of
the Administrative Agent in such Pledged Interests is perfected by control
(within the meaning of Section 8-106 of the New York UCC) of such Pledged
Interests and (ii) assuming the absence of notice of any adverse claim
(within the meaning of Section 8-102(a) of the New York UCC) thereto on the
part of Administrative Agent or any secured party, the Administrative Agent
will be a protected purchaser (within the meaning of Section 8-303(a) of the
New York UCC) of such security interest in such Pledged Interests and will
acquire its interest in such Pledged Interests free of any adverse claim
thereto.

13.                                 Upon
the execution and delivery to the Administrative Agent of the                     
by each party thereto, the security interest of the Administrative Agent in
each deposit account described therein will be perfected by control (within the
meaning of Section 9-104 of the New York UCC.

14.                                 The
North Carolina mortgage creates in favor of the Administrative Agent, as
security for the “Secured Obligations”  (as such term is defined in the North Carolina mortgage), a
valid lien on the                             
interests in that portion of the “Premises”  (as defined in the North Carolina mortgage) that consists
of real property (including fixtures attached thereto) (the “Real Property Collateral”).

15.                                 The
North Carolina mortgage is in proper form, including the notary acknowledgment
attached thereto, for recording in the real estate records of the recording
office in                        
County, North Carolina, and upon such recording will perfect the liens created
thereby in the Real Property Collateral owned by the                             .  No other filing is necessary for the purpose
of giving constructive notice to third parties of the creation of the liens
thereunder for the purposes described therein.

16.                                 Except
for nominal recording or filing fees, no state or local recording tax,
intangibles tax, documentary or stamp tax, mortgage tax or other fee, tax or
governmental charge is required to be paid in the State of North Carolina as a
result of the execution, delivery, performance, recordation or filing of the
North Carolina mortgage or the performance of the transactions contemplated
thereby.

The foregoing opinions are limited in all respects to the laws of the
States of New York and North Carolina, the Delaware General Corporation Law,
the Delaware UCC and the applicable Federal laws of the United States of
America.

The opinions expressed herein may also be relied upon by the
Administrative Agent, each Lender and each of their respective successors and
assigns under the Credit Agreement.

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.

  	
   

  	
  Company:

  	
   

  	
  Maidenform, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Administrative Agent:

  	
   

  	
  Bank of America, N.A., as administrative agent under
  the Credit Agreement

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Credit Agreement

  	
   

  	
  The Credit Agreement dated as of June 15, 2007 among
  Maidenform, Inc., Maidenform Brands, Inc., the financial institutions from
  time to time party thereto as Lenders, Bank of America, N.A. as
  Administrative Agent, and the other agents parties thereto

  

 

	
  

  	
  (1)

  	
  Select as applicable.

  

 

	
  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:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ASSIGNEE

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [NAME OF ASSIGNEE]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
								

 

	
  Consented to and Accepted:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  BANK OF AMERICA, N.A.,

  	
   

  
	
  as
  Administrative Agent

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
					

 

(2)                                  Set
forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all
Lenders thereunder.

 

	
  [Consented to:](3)

  	
   

  	
   

  
	
  [MAIDENFORM, INC.]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  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.

ANNEX 1

MAIDENFORM, INC.

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 this 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.

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
ASSIGNMENT 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).

EXHIBIT X

[FORM
OF] SOLVENCY CERTIFICATE

MAIDENFORM, INC.

June 15, 2007

This SOLVENCY CERTIFICATE (this “Certificate”)
is delivered in connection with that certain Credit Agreement dated as of June  15,  2007 (the “Credit Agreement”) by and among Maidenform, Inc., a New York
corporation (“Company”), Maidenform Brands,
Inc., a Delaware corporation (“Holdings”), the
financial institutions referred to therein as Lenders (“Lenders”)
and Bank of America, N.A., 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 4.1 of the Credit
Agreement.  The undersigned is the Chief
Financial Officer of Company and Holdings and hereby further certifies as of
June 15, 2007 in his 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 Holdings and its
Subsidiaries, 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 the Loan Parties 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 (i) a consolidated balance
sheet of Holdings and its Subsidiaries as of March 31, 2007, and a consolidated
statement of income for the Fiscal Quarter then ended, prepared in accordance
with GAAP, and (ii) projected financial statements consisting of
consolidated balance sheets and statements of income of Holdings and its
Subsidiaries for Fiscal Years 2007 through and including 2011 (it being
understood that projections are subject to significant uncertainties and
contingencies, many of which are beyond Company’s and Holdings’ control, and
that no assurance can be given that the projections will be realized).  The consolidated 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 Holdings 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 each Loan Party is (1) greater than the
total amount of liabilities (including contingent liabilities) of such Loan
Party and (2) not less than the amount that will be required to pay the
probable liabilities of such Loan Party’s then existing debts as they become
absolute and due, considering all financing alternatives and potential asset
sales reasonably available to such Loan Party.

(b)                                 Each
of the Loan Parties does not have an unreasonably small amount of capital in
relation to its business or any contemplated or undertaken transaction.

(c)                                  No
Loan Party intends to incur, nor believes (nor should it reasonably believe)
that it will incur, debts beyond its ability to pay such debts as they become
due.

(d)                                 Each
Loan Party is “solvent” within the meaning given that term and similar terms
under applicable laws relating to fraudulent transfers and conveyances.

(e)                                  For
purposes of this Certificate, the amount of contingent liabilities has been
computed as 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 each Loan Party’s assets have been computed
by considering such Loan Party 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;
signature page follows.

The undersigned has executed this Solvency
Certificate, in his capacity as an officer of the Company and Holdings and not
individually, as of the date set forth above.

	
  

  	
  MAIDENFORM, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MAIDENFORM BRANDS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

EXHIBIT XIII

[FORM OF] COLLATERAL ACCESS AGREEMENT

 

	
  RECORDING REQUESTED BY:

  	
   

  	
   

  
	
  Reed Smith LLP

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  AND WHEN RECORDED MAIL TO:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Reed Smith LLP

  	
   

  	
   

  
	
  136 Main Street, Suite 250

  	
   

  	
   

  
	
  Princeton, New Jersey 08540

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attn: Christopher J. Maurer, Esq.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Re: Maidenform, Inc.

  	
   

  	
   

  
	
   

  	
   

  	
  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 June 15, 2007 and
entered into by                               ,
a                        
(“Real Property Holder”), to and for the
benefit of Bank of America, N.A. 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.                                    Maidenform,
Inc., a New York Corporation (“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”) (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.                                    Administrative
Agent, Lenders, and Company have entered into that certain Credit Agreement
dated as of June 15, 2007 (said Credit Agreement, as amended, supplemented or
otherwise modified from time to time, being the “Credit
Agreement”), the terms defined in the Credit Agreement shall be used
herein as therein defined.

D.                                    The
extensions of credit made by Lenders to Company 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 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, (b) the Lease 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 or against
the obligations of Real Property Holder under the Lease, (d) no notice of
default has been given under or in connection with the Lease 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, 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 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), 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 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 New York, without regard to conflicts of laws principles.

[Remainder
of page intentionally left blank.]

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:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Facsimile Number:

  	
   

  	
   

  
					

 

By its acceptance
hereof, as of the day and year first set forth above, Administrative Agent
agrees to be bound by the provisions hereof.

	
  

  	
  BANK OF AMERICA, N.A.,

  	
   

  
	
   

  	
  as Administrative Agent

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Facsimile Number:

  	
   

  	
   

  
					

 

EXHIBIT A

LEGAL DESCRIPTION OF PREMISES

EXHIBIT B

DESCRIPTION OF [LEASE] [MORTGAGE]

EXHIBIT XIV

[FORM OF] BORROWING BASE CERTIFICATE

FOR THE ACCOUNTING
PERIOD ENDING                  ,

Date:                               

This Borrowing Base Certificate is delivered to
you by Maidenform, Inc., a New York corporation (“Company”),
pursuant to the Credit Agreement dated as of June 15, 2007 (as amended,
restated or otherwise modified as permitted in accordance with its terms, the “Credit Agreement”) by and among Company, Lenders from time
to time party thereto, and Bank of America, N.A., as administrative agent (“Administrative Agent”). 
Capitalized terms used herein and not otherwise defined shall have the
meanings set forth in the Credit Agreement.

I, [NAME], hereby
certify to Administrative Agent that, as of the date hereof, I am the [NAME OF OFFICE](1) of Company, and that, as such, I am
authorized to execute and deliver this Certificate to the Administrative Agent
on behalf of Company.  I hereby certify
in such capacity that, as of the date hereof: (a) no Default or Event of
Default has occurred and is continuing, (b) a review of the activities of
Company has been made under my supervision with a view to determining the
amount of the current Borrowing Base, and (c) the following
information is true and correct and conforms to the requirements and
definitions provided therefore in the Credit Agreement as of the last day of
the accounting period first written above:

Calculation of Borrowing Base

	
  (1)

  	
  85% of Eligible Receivables:

  	
  $

  	
   

  
	
   

  	
   

  	
   

  
	
  (2)

  	
  50% of Eligible Inventory:

  	
  $

  	
   

  
	
   

  	
   

  	
   

  
	
  (3)

  	
  Reserves from time to time established in good faith
  by Administrative Agent in its reasonable credit judgment:

  	
  $

  	
   

  
	
   

  	
   

  	
   

  
	
  (4)

  	
  Borrowing Base (equal to the sum of (1) and (2),
  minus (3))

  	
  $

  	
   

  

 

	
  

  	
  (1)                                  Must be a
  Responsible Officer

  	
   

  

 

IN WITNESS WHEREOF, the undersigned has
executed this Certificate as of the date of this certificate.

	
  

  	
  MAIDENFORM, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Its:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]