Document:

ex10_48.htm

    EXHIBIT
10.48

     

    
 

    Published
CUSIP Number:  78403GAA

    Revolving
Credit CUSIP Number:  78403GAB9

    Term
Loan CUSIP Number:  78403GAC7

    

    
       

      
        

        

      

      
 

    

    $300,000,000

    

    AMENDED
AND RESTATED CREDIT AGREEMENT

    dated as
of December 20, 2007,

    

    by and
among

    

    POOL
CORPORATION,

    as US
Borrower,

    

    SCP
DISTRIBUTORS INC.,

    as
Canadian Borrower,

    

    the
Lenders referred to herein,

    

    WACHOVIA
BANK, NATIONAL ASSOCIATION,

    as
Administrative Agent,

    Swingline
Lender and Issuing Lender,

    

    WACHOVIA
CAPITAL FINANCE CORPORATION (CANADA),

    as
Canadian Dollar Lender,

    

    JPMORGAN
CHASE BANK, N.A.,

    as
Syndication Agent,

    

    WELLS
FARGO BANK, N.A.,

    as
Documentation Agent

    

    REGIONS
BANK,

    as
Documentation Agent

    

    and

    

    CAPITAL
ONE, N.A.,

    as
Documentation Agent

    

    WACHOVIA
CAPITAL MARKETS, LLC,

    as Sole
Lead Arranger and Sole Book Manager

    
      

    

    

    
      

      

    

    
      
        
                                                                                                                                                   

        

         

      

      
         

        
        

      

      
         

      

    

    

      
        	
                TABLE
      OF CONTENTS

              
	 
      	 
      	 
      
	 
      	 
      	
                Page

              
	 
      	 
      	 
      
	
                ARTICLE
      I DEFINITIONS

              	
                2

              
	 
      	 
      	 
      
	
                SECTION
      1.1

              	
                Definitions

              	
                2

              
	
                SECTION
      1.2

              	
                Other
      Definitions and Provisions

              	
                26

              
	
                SECTION
      1.3

              	
                Accounting
      Terms

              	
                26

              
	
                SECTION
      1.4

              	
                UCC
      Terms

              	
                26

              
	
                SECTION
      1.5

              	
                Rounding

              	
                26

              
	
                SECTION
      1.6

              	
                References
      to Agreement and Laws

              	
                26

              
	
                SECTION
      1.7

              	
                Times
      of Day

              	
                27

              
	
                SECTION
      1.8

              	
                Letter
      of Credit Amounts

              	
                27

              
	 
      	 
      	 
      
	
                ARTICLE
      II REVOLVING CREDIT FACILITY

              	
                27

              
	 
      	 
      	 
      
	
                SECTION
      2.1

              	
                Revolving
      Credit Loans

              	
                27

              
	
                SECTION
      2.2

              	
                Canadian
      Dollar Loans

              	
                27

              
	
                SECTION
      2.3

              	
                Swingline
      Loans

              	
                29

              
	
                SECTION
      2.4

              	
                Procedure
      for Advances of Revolving Credit Loans, Canadian Dollar Loans and
      Swingline Loans

              	
                31

              
	
                SECTION
      2.5

              	
                Repayment
      of Loans

              	
                32

              
	
                SECTION
      2.6

              	
                Permanent
      Reduction of the Revolving Credit Commitment

              	
                35

              
	
                SECTION
      2.7

              	
                Termination
      of Revolving Credit Facility

              	
                36

              
	
                SECTION
      2.8

              	
                Nature
      of Obligations

              	
                36

              
	
                SECTION
      2.9

              	
                Optional
      Increase of Revolving Credit Commitment

              	
                36

              
	 
      	 
      	 
      
	
                ARTICLE
      III LETTER OF CREDIT FACILITY

              	
                38

              
	 
      	 
      	 
      
	
                SECTION
      3.1

              	
                L/C
      Commitment

              	
                38

              
	
                SECTION
      3.2

              	
                Procedure
      for Issuance of Letters of Credit

              	
                39

              
	
                SECTION
      3.3

              	
                Commissions
      and Other Charges

              	
                39

              
	
                SECTION
      3.4

              	
                L/C
      Participations

              	
                39

              
	
                SECTION
      3.5

              	
                Reimbursement
      Obligation of the US Borrower

              	
                40

              
	
                SECTION
      3.6

              	
                Obligations
      Absolute

              	
                41

              
	
                SECTION
      3.7

              	
                Effect
      of Letter of Credit Application

              	
                42

              
	 
      	 
      	 
      
	
                ARTICLE
      IV TERM LOAN FACILITY

              	
                42

              
	 
      	 
      	 
      
	
                SECTION
      4.1

              	
                Term
      Loan

              	
                42

              
	
                SECTION
      4.2

              	
                Repayment
      of Term Loan

              	
                42

              
	
                SECTION
      4.3

              	
                Prepayments
      of Term Loan

              	
                42

              
	 
      	 
      	 
      
	
                ARTICLE
      V GENERAL LOAN PROVISIONS

              	
                45

              
	 
      	 
      	 
      
	
                SECTION
      5.1

              	
                Interest

              	
                45

              
	
                SECTION
      5.2

              	
                Notice
      and Manner of Conversion or Continuation of Loans

              	
                48

              
	
                SECTION
      5.3

              	
                Fees

              	
                48

              
	
                SECTION
      5.4

              	
                Manner
      of Payment

              	
                48

              
	
                SECTION
      5.5

              	
                Evidence
      of Indebtedness

              	
                49

              

      

       

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

       

      
        	
                SECTION
      5.6

              	
                Adjustments

              	
                50

              
	
                SECTION
      5.7

              	
                Nature
      of Obligations of Lenders Regarding Extensions of Credit; Assumption by
      the Administrative Agent

              	
                51

              
	
                SECTION
      5.8

              	
                Changed
      Circumstances

              	
                51

              
	
                SECTION
      5.9

              	
                Indemnity

              	
                53

              
	
                SECTION
      5.10

              	
                Increased
      Costs

              	
                53

              
	
                SECTION
      5.11

              	
                Taxes

              	
                55

              
	
                SECTION
      5.12

              	
                Mitigation
      Obligations; Replacement of Lenders

              	
                57

              
	
                SECTION
      5.13

              	
                Redenomination
      of Canadian Dollar Loans

              	
                58

              
	
                SECTION
      5.14

              	
                US
      Borrower as Agent for the Canadian Borrower

              	
                58

              
	 
      	 
      	 
      
	
                ARTICLE
      VI CLOSING; CONDITIONS OF CLOSING AND BORROWING

              	
                59

              
	 
      	 
      	 
      
	
                SECTION
      6.1

              	
                Closing

              	
                59

              
	
                SECTION
      6.2

              	
                Conditions
      to Closing and Initial Extensions of Credit

              	
                59

              
	
                SECTION
      6.3

              	
                Conditions
      to All Extensions of Credit

              	
                62

              
	 
      	 
      	 
      
	
                ARTICLE
      VII REPRESENTATIONS AND WARRANTIES OF THE BORROWERS

              	
                63

              
	 
      	 
      	 
      
	
                SECTION
      7.1

              	
                Representations
      and Warranties

              	
                63

              
	
                SECTION
      7.2

              	
                Survival
      of Representations and Warranties, Etc.

              	
                70

              
	 
      	 
      	 
      
	
                ARTICLE
      VIII FINANCIAL INFORMATION AND NOTICES

              	
                71

              
	 
      	 
      	 
      
	
                SECTION
      8.1

              	
                Financial
      Statements and Projections

              	
                71

              
	
                SECTION
      8.2

              	
                Officer’s
      Compliance Certificate

              	
                72

              
	
                SECTION
      8.3

              	
                Accountants’
      Certificate

              	
                72

              
	
                SECTION
      8.4

              	
                Other
      Reports

              	
                72

              
	
                SECTION
      8.5

              	
                Notice
      of Litigation and Other Matters

              	
                73

              
	
                SECTION
      8.6

              	
                Accuracy
      of Information

              	
                74

              
	 
      	 
      	 
      
	
                ARTICLE
      IX AFFIRMATIVE COVENANTS

              	
                74

              
	 
      	 
      	 
      
	
                SECTION
      9.1

              	
                Preservation
      of Corporate Existence and Related Matters

              	
                75

              
	
                SECTION
      9.2

              	
                Maintenance
      of Property

              	
                75

              
	
                SECTION
      9.3

              	
                Insurance

              	
                75

              
	
                SECTION
      9.4

              	
                Accounting
      Methods and Financial Records

              	
                75

              
	
                SECTION
      9.5

              	
                Payment
      and Performance of Obligations

              	
                75

              
	
                SECTION
      9.6

              	
                Compliance
      With Laws and Approvals

              	
                75

              
	
                SECTION
      9.7

              	
                Environmental
      Laws

              	
                75

              
	
                SECTION
      9.8

              	
                Compliance
      with ERISA

              	
                76

              
	
                SECTION
      9.9

              	
                Compliance
      With Agreements

              	
                76

              
	
                SECTION
      9.10

              	
                Visits
      and Inspections

              	
                76

              
	
                SECTION
      9.11

              	
                Additional
      Subsidiaries

              	
                77

              
	
                SECTION
      9.12

              	
                Use
      of Proceeds

              	
                77

              
	
                SECTION
      9.13

              	
                Further
      Assurances

              	
                77

              
	 
      	 
      	 
      
	
                ARTICLE
      X FINANCIAL COVENANTS

              	
                77

              
	 
      	 
      	 
      
	
                SECTION
      10.1

              	
                Average
      Total Leverage Ratio

              	
                77

              

      

       

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

       

      
        	
                SECTION
      10.2

              	
                Fixed
      Charge Coverage Ratio

              	
                78

              
	 
      	 
      	 
      
	
                ARTICLE
      XI NEGATIVE COVENANTS

              	
                78

              
	 
      	 
      	 
      
	
                SECTION
      11.1

              	
                Limitations
      on Indebtedness

              	
                78

              
	
                SECTION
      11.2

              	
                Limitations
      on Liens

              	
                80

              
	
                SECTION
      11.3

              	
                Limitations
      on Loans, Advances, Investments and Acquisitions

              	
                81

              
	
                SECTION
      11.4

              	
                Limitations
      on Mergers and Liquidation

              	
                84

              
	
                SECTION
      11.5

              	
                Limitations
      on Sale of Assets

              	
                85

              
	
                SECTION
      11.6

              	
                Limitations
      on Dividends and Distributions

              	
                85

              
	
                SECTION
      11.7

              	
                Limitations
      on Exchange and Issuance of Capital Stock

              	
                86

              
	
                SECTION
      11.8

              	
                Transactions
      with Affiliates

              	
                86

              
	
                SECTION
      11.9

              	
                Certain
      Accounting Changes; Organizational Documents

              	
                86

              
	
                SECTION
      11.10

              	
                Amendments;
      Payments and Prepayments of Certain Indebtedness

              	
                86

              
	
                SECTION
      11.11

              	
                Restrictive
      Agreements

              	
                87

              
	
                SECTION
      11.12

              	
                Nature
      of Business

              	
                88

              
	 
      	 
      	 
      
	
                ARTICLE
      XII UNCONDITIONAL US BORROWER GUARANTY

              	
                88

              
	 
      	 
      	 
      
	
                SECTION
      12.1

              	
                Guaranty
      of Obligations

              	
                88

              
	
                SECTION
      12.2

              	
                Nature
      of Guaranty

              	
                88

              
	
                SECTION
      12.3

              	
                Demand
      by the Administrative Agent

              	
                89

              
	
                SECTION
      12.4

              	
                Waivers

              	
                89

              
	
                SECTION
      12.5

              	
                Modification
      of Loan Documents etc.

              	
                90

              
	
                SECTION
      12.6

              	
                Reinstatement

              	
                90

              
	
                SECTION
      12.7

              	
                No
      Subrogation

              	
                90

              
	 
      	 
      	 
      
	
                ARTICLE
      XIII DEFAULT AND REMEDIES

              	
                91

              
	 
      	 
      	 
      
	
                SECTION
      13.1

              	
                Events
      of Default

              	
                91

              
	
                SECTION
      13.2

              	
                Remedies

              	
                94

              
	
                SECTION
      13.3

              	
                Rights
      and Remedies Cumulative; Non-Waiver; etc.

              	
                94

              
	
                SECTION
      13.4

              	
                Crediting
      of Payments and Proceeds

              	
                95

              
	
                SECTION
      13.5

              	
                Administrative
      Agent May File Proofs of Claim

              	
                95

              
	
                SECTION
      13.6

              	
                Judgment
      Currency

              	
                96

              
	 
      	 
      	 
      
	
                ARTICLE
      XIV THE ADMINISTRATIVE AGENT

              	
                97

              
	 
      	 
      	 
      
	
                SECTION
      14.1

              	
                Appointment
      and Authority

              	
                97

              
	
                SECTION
      14.2

              	
                Delegation
      of Duties

              	
                97

              
	
                SECTION
      14.3

              	
                Exculpatory
      Provisions

              	
                97

              
	
                SECTION
      14.4

              	
                Reliance
      by the Administrative Agent

              	
                98

              
	
                SECTION
      14.5

              	
                Notice
      of Default

              	
                98

              
	
                SECTION
      14.6

              	
                Non-Reliance
      on the Administrative Agent and Other Lenders

              	
                98

              
	
                SECTION
      14.7

              	
                Indemnification

              	
                99

              
	
                SECTION
      14.8

              	
                The
      Administrative Agent in Its Individual Capacity

              	
                99

              

      

       

      
        
          
          

        

        
          iii

          
            

          

        

        
          
          

        

      

       

      
        	
                SECTION
      14.9

              	
                Resignation
      of the Administrative Agent; Swingline Lender, Issuing Lender and Canadian
      Dollar Lender; Successor Administrative Agent, Swingline Lender, Issuing
      Lender and Canadian Dollar Lender

              	
                100

              
	
                SECTION
      14.10

              	
                Guaranty
      Matters

              	
                101

              
	
                SECTION
      14.11

              	
                Other
      Agents, Arrangers and Managers

              	
                101

              
	 
      	 
      	 
      
	
                ARTICLE
      XV MISCELLANEOUS

              	
                102

              
	 
      	 
      	 
      
	
                SECTION
      15.1

              	
                Notices

              	
                102

              
	
                SECTION
      15.2

              	
                Amendments,
      Waivers and Consents

              	
                103

              
	
                SECTION
      15.3

              	
                Expenses;
      Indemnity

              	
                104

              
	
                SECTION
      15.4

              	
                Set-off

              	
                105

              
	
                SECTION
      15.5

              	
                Governing
      Law

              	
                106

              
	
                SECTION
      15.6

              	
                Jurisdiction
      and Venue

              	
                106

              
	
                SECTION
      15.7

              	
                Binding
      Arbitration; Waiver of Jury Trial

              	
                106

              
	
                SECTION
      15.8

              	
                Reversal
      of Payments

              	
                108

              
	
                SECTION
      15.9

              	
                Injunctive
      Relief; Punitive Damages

              	
                108

              
	
                SECTION
      15.10

              	
                Accounting
      Matters

              	
                108

              
	
                SECTION
      15.11

              	
                Successors
      and Assigns; Participations

              	
                108

              
	
                SECTION
      15.12

              	
                Confidentiality

              	
                111

              
	
                SECTION
      15.13

              	
                Performance
      of Duties

              	
                112

              
	
                SECTION
      15.14

              	
                All
      Powers Coupled with Interest

              	
                112

              
	
                SECTION
      15.15

              	
                Survival
      of Indemnities

              	
                112

              
	
                SECTION
      15.16

              	
                Titles
      and Captions

              	
                112

              
	
                SECTION
      15.17

              	
                Severability
      of Provisions

              	
                112

              
	
                SECTION
      15.18

              	
                Counterparts

              	
                112

              
	
                SECTION
      15.19

              	
                Integration

              	
                112

              
	
                SECTION
      15.20

              	
                Term
      of Agreement

              	
                113

              
	
                SECTION
      15.21

              	
                Advice
      of Counsel, No Strict Construction

              	
                113

              
	
                SECTION
      15.22

              	
                Inconsistencies
      with Other Documents; Independent Effect of Covenants

              	
                113

              
	
                SECTION
      15.23

              	
                USA
      Patriot Act

              	
                113

              
	
                SECTION
      15.24

              	
                Amendment
      and Restatement; No Novation

              	
                113

              

      

       

    

    
      
        
           

                                                                                                                                                     

        

         

      

      
        iv

        
          

        

      

      
         

      

    

    

      
        	 
      	 
      	
                EXHIBITS

              
	 
      	 
      	 
      
	
                Exhibit
      A-1

              	
                -

              	
                Form
      of Revolving Credit Note

              
	
                Exhibit
      A-2

              	
                -

              	
                Form
      of Swingline Note

              
	
                Exhibit
      A-3

              	
                -

              	
                Form
      of Canadian Note

              
	
                Exhibit
      A-4

              	
                -

              	
                Form
      of Term Note

              
	
                Exhibit
      B

              	
                -

              	
                Form
      of Notice of Borrowing

              
	
                Exhibit
      C

              	
                -

              	
                Form
      of Notice of Account Designation

              
	
                Exhibit
      D

              	
                -

              	
                Form
      of Notice of Repayment

              
	
                Exhibit
      E

              	
                -

              	
                Form
      of Notice of Conversion/Continuation

              
	
                Exhibit
      F

              	
                -

              	
                Form
      of Officer’s Compliance Certificate

              
	
                Exhibit
      G

              	
                -

              	
                Form
      of Assignment and Assumption

              
	
                Exhibit
      H

              	
                -

              	
                Form
      of Amended and Restated Subsidiary Guaranty Agreement

              
	 
      	 
      	 
      
	
                SCHEDULES

              	 
      	 
      
	 
      	 
      	 
      
	
                Schedule
      1.1

              	
                -

              	
                Existing
      Letters of Credit

              
	
                Schedule
      7.1(a)

              	
                -

              	
                Jurisdictions
      of Organization and Qualification

              
	
                Schedule
      7.1(b)

              	
                -

              	
                Subsidiaries
      and Capitalization

              
	
                Schedule
      7.1(i)

              	
                -

              	
                ERISA
      Plans

              
	
                Schedule
      7.1(l)

              	
                -

              	
                Material
      Contracts

              
	
                Schedule
      7.1(m)

              	
                -

              	
                Labor
      and Collective Bargaining Agreements

              
	
                Schedule
      7.1(t)

              	
                -

              	
                Indebtedness

              
	
                Schedule
      7.1(u)

              	
                -

              	
                Litigation

              
	
                Schedule
      11.2

              	
                -

              	
                Existing
      Liens

              
	
                Schedule
      11.3

              	
                -

              	
                Existing
      Loans, Advances and Investments

              

      

       

      
        
           

        

        
          v

          
            

          

        

        
           

        

      

    AMENDED
AND RESTATED CREDIT AGREEMENT, dated as of December 20, 2007, by and among
POOL CORPORATION (formerly known as SCP Pool Corporation), a Delaware
corporation (the “US
Borrower”), SCP DISTRIBUTORS INC., a company organized under the laws of
Ontario (the “Canadian
Borrower” and, together with the US Borrower, the “Borrowers”), the
lenders who are or may become a party to this Agreement (collectively, the
“Lenders”),
WACHOVIA BANK, NATIONAL ASSOCIATION, a national banking association, as
Administrative Agent for the Lenders, WACHOVIA CAPITAL FINANCE CORPORATION
(CANADA), as Canadian Dollar Lender, JPMORGAN CHASE BANK, N.A., as Syndication
Agent, WELLS FARGO BANK, N.A., as Documentation Agent, REGIONS BANK, as
Documentation Agent and CAPITAL ONE, N.A., as Documentation Agent.

     

    STATEMENT OF
PURPOSE

     

    Pursuant
to that certain Credit Agreement dated as of November 2, 2004 (as amended,
restated, supplemented or otherwise modified prior to the date hereof, the
“Existing Credit
Agreement”) by and among the US Borrower, the Canadian Borrower, the
lenders from time to time party thereto (the “Existing Lenders”)
and Wachovia Bank, National Association, as Administrative Agent, the Existing
Lenders extended certain credit facilities to the Borrowers pursuant to the
terms thereof.

     

    The
Borrowers have requested that the Lenders agree to amend and restate the
Existing Credit Agreement to (a) provide a revolving credit loan facility
in the amount of $240,000,000 and make certain related amendments necessary for
such purpose and (b) make certain other amendments.

     

    It is the
intent of the parties hereto that this Agreement not constitute a novation of
the obligations and liabilities of the parties with respect to the Existing
Credit Agreement or be deemed to be evidence of or constitute repayment of all
or any portion of such obligations and liabilities, but that this Agreement
amend and restate in its entirety the Existing Credit Agreement and re-evidence
the obligations and liabilities of the Borrowers and the other credit parties
with respect thereto.

     

    It is
also the intent of the Borrowers and Subsidiary Guarantors (as defined below) to
confirm that all obligations under the loan documents referred to in the
Existing Credit Agreement shall continue in full force and effect as modified by
the Loan Documents referred to herein and that, from and after the Closing Date,
all references to the “Credit Agreement” contained in any such existing loan
documents shall be deemed to refer to this Agreement.

     

    NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged by the parties hereto, the parties hereby agree
that the Existing Credit Agreement is hereby amended and restated as
follows:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
I

    DEFINITIONS

    SECTION
1.1 Definitions

     

    The
following terms when used in this Agreement shall have the meanings assigned to
them below:

     

    “Accounts
Securitization” means, with respect to the US Borrower and its
Subsidiaries (other than Superior Commerce), any pledge, sale, transfer,
contribution, conveyance or other disposition of (a) “accounts”, “chattel
paper”, “instruments” or “general intangibles” (each as defined in the UCC)
arising in connection with the sale of goods or the rendering of services by
such Person, including, without limitation, the related rights to any finance,
interest, late payment or similar charges (such items, the “Receivables”), (b)
such Person’s interest in the inventory or goods the sale of which by such
Person gave rise to such Receivable (but only to the extent such inventory or
goods consists of returned or repossessed inventory or goods, if any), (c) all
other guaranties, letters of credit, insurance and security interests or liens
purporting to secure or support payment of such Receivable, (d) all insurance
contracts, service contracts, books and records associated with such Receivable,
(e) any lockbox, post office box or similar deposit account related solely to
the accounts being transferred, (f) cash collections and cash proceeds of such
Receivable and (g) any proceeds of the foregoing (all such items referenced in
clauses (a) through (g), the “Transferred Assets”)
which such sale, transfer, contribution, conveyance or other disposition is
funded by the recipient of such Transferred Assets in whole or in part by
borrowings or the issuance of instruments or securities that are paid
principally from the cash derived from such Transferred Assets; provided that the
aggregate amount of gross proceeds available to the US Borrower or any
Subsidiary in connection with all such transactions shall not at any time exceed
$175,000,000; and provided further that such
sale, transfer, contribution, conveyance or other disposition and any
Indebtedness arising from such sale, transfer, contribution, conveyance or other
disposition shall be without recourse to the US Borrower or any of its
Subsidiaries (other than Superior Commerce) except with respect to (i)
reductions in the balance of such Receivable as a result of any defective or
rejected goods or set off by the obligor of such Receivable transferred by such
Person, (ii) breaches of representations or warranties by such Person in the
Receivables Sale Agreement or any other receivables sale agreements which
contain representations and warranties which are no broader in scope and
obligation than the representations and warranties contained in the Receivables
Sale Agreement and (iii) indemnification of Superior Commerce to the extent
provided in the Receivables Sale Agreement or any other receivables sale
agreements which contain indemnification terms and provisions which are no
broader in scope and obligation than the terms and provisions contained in the
Receivables Sale Agreement.

     

    “Administrative Agent”
means Wachovia, in its capacity as Administrative Agent hereunder, and any
successor thereto appointed pursuant to Section
14.9.

     

    “Administrative Agent’s
Office” means the office of the Administrative Agent specified in or
determined in accordance with the provisions of Section
15.1(c).

     

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

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    “Affiliate” means,
with respect to any Person, any other Person (other than any Subsidiary of a
Borrower) which, directly or indirectly, through one or more intermediaries,
controls, or is controlled by, or is under common control with, such first
Person or any Subsidiary thereof.  The term “control” means
(a) the power to vote ten percent (10%) or more of the securities or other
equity interests of a Person having ordinary voting power, or (b) the
possession, directly or indirectly, of any other power to direct or cause the
direction of the management and policies of a Person, whether through ownership
of voting securities, by contract or otherwise.

     

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

     

    “Applicable Law” means
all applicable provisions of constitutions, laws, statutes, ordinances, rules,
treaties, regulations, permits, licenses, approvals, interpretations and orders
of courts or Governmental Authorities and all orders and decrees of all courts
and arbitrators.

     

    “Applicable Margin”
means

     

    (a) with
respect to the Revolving Credit Facility, the corresponding percentages per
annum as set forth below:

     

    
      	 
      	 
      	 
      	
              Revolving
      Credit Facility

            
	
              Pricing
      Level

            	
              Average
      Total Leverage Ratio

            	
              Revolving
      Credit Facility Fee

            	
              LIBOR
      +

              and
      LIBOR Market Index Rate +

            	
              Base
      Rate +

              and
      Canadian Base Rate+

            
	
              I

            	
              Greater
      than or equal to 3.00 to 1.00

            	
              0.300%

            	
              1.250%

            	
              0.250%

            
	
              II

            	
              Greater
      than or equal to 2.50 to 1.00 but less than 3.00 to 1.00

            	
              0.250%

            	
              1.000%

            	
              0.000%

            
	
              III

            	
              Greater
      than or equal to 2.00 to 1.00 but less than 2.50 to 1.00

            	
              0.200%

            	
              0.800%

            	
              0.000%

            
	
              IV

            	
              Greater
      than or equal to 1.50 to 1.00 but less than 2.00 to 1.00

            	
              0.175%

            	
              0.700%

            	
              0.000%

            
	
              V

            	
              Greater
      than or equal to 1.00 to 1.00 but less than 1.50 to 1.00

            	
              0.150%

            	
              0.600%

            	
              0.000%

            
	
              VI

            	
              Less
      than 1.00 to 1.00

            	
              0.125%

            	
              0.500%

            	
              0.000%

            

    

    

    (b) with
respect to the Term Loan Facility, (i) at any time for which the Average
Total Leverage Ratio is greater than or equal to 1.25 to 1.00 as of the most
recently ended fiscal quarter for which an Officer’s Compliance Certificate has
been received by the Administrative Agent, 0.750% for LIBOR Rate Loans and
0.000% for Base Rate Loans or (ii) at any time for which the Average Total
Leverage Ratio is less than 1.25 to 1.00 as of the most recently ended fiscal
quarter for which an Officer’s Compliance Certificate has been received by the
Administrative Agent, 0.625% for LIBOR Rate Loans and 0.000% for Base Rate
Loans.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    The
Applicable Margin shall be determined and adjusted quarterly on the date (each a
“Calculation
Date”) ten (10) Business Days after receipt by the Administrative Agent
of the Officer’s Compliance Certificate pursuant to Section 8.2 for the
most recently ended fiscal quarter of the US Borrower; provided, however,
that:

     

    (i)           the
Applicable Margin with respect to the Revolving Credit Facility shall be based
on Pricing Level III until the first Calculation Date occurring after the first
full fiscal quarter ending after the Closing Date and thereafter the Applicable
Margin shall be determined by reference to the Average Total Leverage Ratio as
of the last day of the most recently ended fiscal quarter of the US Borrower
preceding the applicable Calculation Date; and

     

    (ii)           if
the Borrowers fail to provide the Officer’s Compliance Certificate as required
by Section 8.2
for the most recently ended fiscal quarter of the US Borrower preceding the
applicable Calculation Date, the Applicable Margin from such Calculation Date
shall be (A) based on Pricing Level I with respect to Revolving Credit
Loans, (B) 0.750% for Term Loans that are LIBOR Rate Loans and
(C) 0.000% for Term Loans that are Base Rate Loans, in each case until such
time as an appropriate Officer’s Compliance Certificate is provided, at which
time the Pricing Level shall be determined by reference to the Average Total
Leverage Ratio as of the last day of the most recently ended fiscal quarter of
the US Borrower preceding such Calculation Date.  The Applicable
Margin shall be effective from one Calculation Date until the next Calculation
Date.  Any adjustment in the Applicable Margin shall be applicable to
all Extensions of Credit then existing or subsequently made or
issued.

     

    Notwithstanding
the foregoing, in the event that any financial statement or Officer’s Compliance
Certificate delivered pursuant to Section 8.1 or 8.2 is shown to be
inaccurate (regardless of whether (i) this Agreement is in effect, or (ii) the
Revolving Credit Commitments are in effect, or (iii) any Extension of Credit is
outstanding when such inaccuracy is discovered or such financial statement or
Officer’s Compliance Certificate was delivered), and such inaccuracy, if
corrected, would have led to the application of a higher Applicable Margin for
any period (an “Applicable Period”)
than the Applicable Margin applied for such Applicable Period, then (x) the US
Borrower shall immediately deliver to the Administrative Agent a correct
Officer’s Compliance Certificate for such Applicable Period, (y) the Applicable
Margin for such Applicable Period shall be determined as if the Average Total
Leverage Ratio in the corrected Officer’s Compliance Certificate were applicable
for such Applicable Period, and (z) the US Borrower shall immediately pay to the
Administrative Agent the accrued additional interest owing as a result of such
increased Applicable Margin for such Applicable Period, which payment shall be
promptly applied by the Administrative Agent in accordance with Section
5.4.  Nothing in this paragraph shall limit the rights of the
Administrative Agent and the Lenders with respect to Sections 5.1(c) and
Article
XIII.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

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

     

    “Arbitration Rules”
has the meaning assigned thereto in Section
15.7(a).

     

    “Asset Disposition”
means the disposition of any or all of the assets of any Credit Party or
Subsidiary thereof (including, without limitation, the Capital Stock of a
Subsidiary or any ownership interest in a joint venture) whether by sale, lease,
transfer or otherwise.  The term “Asset Disposition” shall not include
any Equity Issuance or Debt Issuance.

     

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

     

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

     

    “Average Accounts
Securitization Proceeds” means, for any period, as determined on a
Consolidated basis, without duplication, for the US Borrower and its
Subsidiaries, the average for such period of the total amount of borrowings or
issuances of instruments or securities in connection with any Accounts
Securitization as of each calendar month end during such period.

    

    “Average Total Funded
Indebtedness” means, for any period, as determined on a Consolidated
basis, without duplication, for the US Borrower and its Subsidiaries in
accordance with GAAP, the average for such period of the Total Funded
Indebtedness as of each calendar month end during such period.

    

    “Average Total Leverage
Ratio” means, for any date, the ratio of (a) the sum of (i) the Average
Total Funded Indebtedness for the period of twelve (12) consecutive months
ending on or immediately prior to such date plus (ii) the Average Accounts
Securitization Proceeds for the period of twelve (12) consecutive months ending
on or immediately prior to such date to (b) EBITDA for the period of twelve
(12) consecutive months ending on or immediately prior to such
date.

     

    “Bankruptcy Event of
Default” means any Event of Default pursuant to Sections 13.1(j) or
(k).

     

    “Base Rate” means, at
any time, the higher of (a) the Prime Rate and (b) the Federal Funds Rate plus 1/2 of 1%; each
change in the Base Rate shall take effect simultaneously with the corresponding
change or changes in the Prime Rate or the Federal Funds Rate.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    “Base Rate Loan” means
any Loan bearing interest at a rate based upon the Base Rate as provided in
Section
5.1(a).

     

    “Borrowers” has the
meaning assigned thereto in the introductory paragraph hereto.

     

    “Business Day”
means:

     

    (a) for all
purposes other than as set forth in clauses (b) or (c) below, any day other than
a Saturday, Sunday or legal holiday on which banks in Charlotte, North Carolina
and New York, New York, are open for the conduct of their commercial banking
business;

     

    (b) with
respect to all notices and determinations in connection with, and payments of
principal and interest on, any LIBOR Rate Loan, any day that is a Business Day
described in clause (a) and that is also a day for trading by and between banks
in Dollar deposits in the London interbank market; and

     

    (c) with
respect to all notices and determinations in connection with, and payments of
principal and interest on, any Canadian Dollar Loan, any day that is a Business
Day described in clause (a) and on which banks are open for business in Toronto,
Ontario.

     

    “Calculation Date” has
the meaning assigned thereto in the definition of Applicable
Margin.

     

    “Canadian Base Rate”
means at any time, the greater of (a) the rate of interest publicly announced
from time to time by the Canadian Reference Bank as its prime rate in effect for
determining interest rates on Canadian Dollar denominated commercial loans in
Canada (which such rate is not necessarily the most favored rate of the Canadian
Reference Bank and the Canadian Reference Bank may lend to its customers at
rates that are at, above or below such rate) or, if the Canadian Reference Bank
ceases to announce a rate so designated, any similar successor rate designated
by the Canadian Reference Bank and (b) the annual rate of interest equal to the
sum of (i) the CDOR Rate at such time plus (ii) one percent
(1%) per annum.

     

    “Canadian Base Rate
Loan” means any Canadian Dollar Loan which bears interest at a rate
determined by reference to the Canadian Base Rate.

     

    “Canadian Borrower”
has the meaning assigned thereto in the introductory paragraph
hereto.

     

    “Canadian Dollar” or
“C$” means, at any time of determination, the then official currency of
Canada.

     

    “Canadian Dollar
Commitment” means the lesser of (a) Twenty Million Dollars ($20,000,000)
and (b) the Revolving Credit Commitment.

     

    “Canadian Dollar
Lender” means Wachovia Canada, in its capacity as Canadian Dollar Lender
hereunder, and any successor thereto appointed pursuant to Section
14.9.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    “Canadian Dollar Loan”
means any revolving credit loan made by the Canadian Dollar Lender pursuant to
Section
2.2.

     

    “Canadian Note” means
the promissory note made by the Canadian Borrower payable to the order of the
Canadian Dollar Lender, substantially in the form of Exhibit
A-3 hereto, evidencing the Canadian Dollar Loans, and any amendments,
supplements and modifications thereto, any substitutes therefor and any
replacements, restatements, renewals or extensions thereof, in whole or in
part.

     

    “Canadian Reference
Bank” means Bank of Montreal, or its successor and assigns, or such other
bank as the Canadian Dollar Lender may from time to time designate.

     

    “Capital Lease” means
any lease of any property by the US Borrower or any of its Subsidiaries, as
lessee, that should, in accordance with GAAP, be classified and accounted for as
a capital lease on a Consolidated balance sheet of the US Borrower and its
Subsidiaries.

     

    “Capital Stock” means
(a) in the case of a corporation, capital stock, (b) in the case of an
association or business entity, any and all shares, interests, participations,
rights or other equivalents (however designated) of capital stock, (c) in the
case of a partnership, partnership interests (whether general or limited), (d)
in the case of a limited liability company, membership interests and (e) any
other interest or participation that confers on a Person the right to receive a
share of the profits and losses of, or distributions of assets of, the issuing
Person.

     

    “Cash Equivalents”
means any investments permitted pursuant to Section 11.3(b).

     

    “CDOR Rate” means the
rate of interest per annum determined on the basis of an average thirty (30) day
rate applicable to Canadian Dollar bankers’ acceptances appearing on the
“Reuters Screen CDOR Page” (as defined in the International Swap Dealer
Association, Inc.’s definitions, as amended, restated, supplemented or otherwise
modified from time to time) as of 10:00 a.m. one (1) Canadian Business Day prior
to the first day of the applicable Interest Period (rounded upward, if
necessary, to the nearest 1/100th of
1%).  If, for any reason, such rate does not appear on the Reuters
Screen CDOR Page, then the “CDOR Rate” shall be determined by the Canadian
Dollar Lender to be the arithmetic average of the rate per annum at which
deposits in Canadian Dollars would be offered by first class banks in Canada to
the Canadian Dollar Lender.  Each calculation by the Canadian Dollar
Lender of the CDOR Rate shall be conclusive and binding for all purposes, absent
manifest error.

     

    “Change in Control”
means (a) any event or series of events in which any person or group of persons
(within the meaning of Section 13(d) of the Securities Exchange Act of 1934, as
amended) acting in concert obtain beneficial ownership or control in one or more
series of transactions of more than thirty percent (30%) of the Capital Stock or
thirty percent (30%) of the voting power of the US Borrower entitled to vote in
the election of members of the board of directors of the US Borrower, (b) during
any period of twelve (12) consecutive months, a majority of the members of the
board of directors of the US Borrower cease to be composed of individuals (i)
who were members of the board of directors on the first day of such period, (ii)
whose election or nomination to the board of directors was approved by
individuals who comprised a majority of the board of directors on the first day
of such period or (iii) whose election or nomination to the board of directors
was approved by (A) individuals who were members of the board of directors on
the first day of such period or (B) individuals whose election or nomination to
the board of directors was approved by a majority of the board of directors on
the first day of such period; provided that in each
case such individuals constituted a majority of the board of directors at the
time of such election or nomination, or (c) there shall have occurred under any
indenture or other evidence of Indebtedness in excess of $5,000,000 any “change
in control” (as defined in such indenture or other evidence of Indebtedness)
obligating the US Borrower to repurchase, redeem or repay all or any part of the
Indebtedness or Capital Stock provided for therein.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    “Change in Law” means
the occurrence, after the Closing Date, of any of the following: (a) the
adoption or taking effect of any law, rule, regulation or treaty, (b) any change
in any law, rule, regulation or treaty or in the administration, interpretation
or application thereof by any Governmental Authority or (c) the making or
issuance of any request, guideline or directive (whether or not having the force
of law) by any Governmental Authority.

     

    “Closing Date” means
December 20, 2007.

     

    “Code” means the
Internal Revenue Code of 1986, and the rules and regulations thereunder, each as
amended or modified from time to time.

     

    “Commitment” means, as
to any Lender, on a collective basis, such Lender’s Canadian Dollar Commitment,
if any, Swingline Commitment, if any, Revolving Credit Commitment and Term Loan
Commitment, in each case as set forth in the Register, as the same may be
reduced or modified at any time or from time to time pursuant to the terms
hereof.

     

    “Commitment
Percentage” means, as to any Lender at any time, such Lender’s Revolving
Credit Commitment Percentage or Term Loan Commitment Percentage, as
applicable.

     

    “Consolidated” means,
when used with reference to financial statements or financial statement items of
the US Borrower and its Subsidiaries, such statements or items on a consolidated
basis in accordance with applicable principles of consolidation under
GAAP.

     

    “Credit Facility”
means, collectively, the Revolving Credit Facility, the Term Loan Facility, the
Swingline Facility and the L/C Facility.

     

    “Credit Parties”
means, collectively, the US Borrower, the Canadian Borrower and the Subsidiary
Guarantors.

     

    “Debt Issuance” shall
mean the issuance of any Indebtedness for borrowed money by any Borrower or any
of its Subsidiaries, excluding any Equity Issuance or any Indebtedness of the
Borrowers and their Subsidiaries permitted to be incurred pursuant to Section 11.1 (other
than Section
11.1(j)).

     

    “Default” means any of
the events specified in Section 13.1 which
with the passage of time, the giving of notice or any other condition, would
constitute an Event of Default.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    “Defaulting Lender”
means any Lender that (a) has failed to fund any portion of the Revolving Credit
Loans, the Term Loan, participations in Canadian Dollar Loans, participations in
Swingline Loans or participations in L/C Obligations required to be funded by it
hereunder within one (1) Business Day of the date required to be funded by it
hereunder, (b) has otherwise failed to pay over to the Administrative Agent or
any other Lender any other amount required to be paid by it hereunder within one
(1) Business Day of the date when due, unless such amount is the subject of a
good faith dispute, or (c) has been deemed insolvent or become the subject of a
bankruptcy or insolvency proceeding.

     

    “Disputes” has the
meaning set forth in Section
15.7.

     

    “Dollar Amount” means,
(a) with respect to each Extension of Credit made or continued (or to be made or
continued) in Dollars, the principal amount thereof and (b) with respect to each
Loan made or continued (or to be made or continued) in Canadian Dollars, the
amount of Dollars which is equivalent to the principal amount of such Loan at
the most favorable spot exchange rate determined by the Administrative Agent at
approximately 11:00 a.m. two (2) Business Days before such Loan is made or
continued (or to be made or continued).  When used with respect to any
other sum expressed in Canadian Dollars, “Dollar Amount” shall mean the amount
of Dollars which is equivalent to the amount so expressed in Canadian Dollars at
the most favorable spot exchange rate determined by the Administrative Agent to
be available to it at the relevant time.

     

    “Dollars” or “$”
means, unless otherwise qualified, dollars in lawful currency of the United
States.

     

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

     

    “EBITDA” means, for
any period, the sum of the following determined on a Consolidated basis, without
duplication, for the US Borrower and its Subsidiaries in accordance with GAAP:
(a) Net Income for such period plus (b) the sum of
the following to the extent deducted in determining Net Income for such
period: (i) income and franchise taxes, (ii) Interest Expense, (iii)
amortization, (iv) depreciation, (v) non-cash stock option expense and (vi)
extraordinary losses incurred other than in the ordinary course of business
less (c) any
extraordinary gains realized during such period other than in the ordinary
course of business.

     

    “EBITDAR” means, for
any period, the sum of the following determined on a Consolidated basis, without
duplication, for the US Borrower and its Subsidiaries in accordance with
GAAP:  (a) Net Income for such period plus (b) the sum of
the following to the extent deducted in determining Net Income for such period:
(i) income and franchise taxes, (ii) Interest Expense, (iii) amortization, (iv)
depreciation, (v) Rental Expense, (vi) non-cash stock option expense and (vii)
extraordinary losses incurred other than in the ordinary course of business
less (c) any
extraordinary gains realized during such period other than in the ordinary
course of business.

     

    “Eligible Assignee”
means (a) a Lender, (b) an Affiliate of a Lender, (c) an Approved Fund, and (d)
any other Person (other than a natural person) approved by (i) the
Administrative Agent, (ii) in the case of any assignment of a Revolving Credit
Commitment, the Canadian Dollar Lender, the Swingline Lender and the Issuing
Lender, and, (iii) unless a Default or Event of Default has occurred and is
continuing, the US Borrower (each such approval not to be unreasonably withheld
or delayed); provided that
notwithstanding the foregoing, “Eligible Assignee” shall not include the US
Borrower, the Canadian Borrower or any of their Affiliates or
Subsidiaries.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    “Employee Benefit
Plan” means any employee benefit plan within the meaning of Section 3(3)
of ERISA which (a) is maintained for employees of the US Borrower or any ERISA
Affiliate or (b) has at any time within the preceding six (6) years been
maintained for the employees of the US Borrower or any current or former ERISA
Affiliate.

     

    “Environmental Claims”
means any and all administrative, regulatory or judicial actions, suits,
demands, demand letters, claims, liens, accusations, allegations, notices of
noncompliance or violation, investigations (other than internal reports prepared
by any Person in the ordinary course of business and not in response to any
third party action or request of any kind) or proceedings relating in any way to
any actual or alleged violation of or liability under any Environmental Law or
relating to any permit issued, or any approval given, under any such
Environmental Law, including, without limitation, any and all claims by
Governmental Authorities for enforcement, cleanup, removal, response, remedial
or other actions or damages, contribution, indemnification, cost recovery,
compensation or injunctive relief resulting from Hazardous Materials or arising
from alleged injury or threat of injury to human health or the
environment.

     

    “Environmental Laws”
means any and all federal, foreign, state, provincial and local laws, statutes,
ordinances, codes, rules, standards and regulations, permits, licenses,
approvals, interpretations and orders of courts or Governmental Authorities,
relating to the protection of human health or the environment, including, but
not limited to, requirements pertaining to the manufacture, processing,
distribution, use, treatment, storage, disposal, transportation, handling,
reporting, licensing, permitting, investigation or remediation of Hazardous
Materials.

     

    “Equity Issuance”
means any issuance by either Borrower or any Subsidiary to any Person which is
not a Credit Party of (a) shares of its Capital Stock, (b) any shares of its
Capital Stock pursuant to the exercise of options or warrants or (c) any shares
of its Capital Stock pursuant to the conversion of any debt securities to
equity.  The term “Equity Issuance” shall not include (i) any Asset
Disposition or (ii) any Debt Issuance.

     

    “ERISA” means the
Employee Retirement Income Security Act of 1974, and the rules and regulations
thereunder, each as amended or modified from time to time.

     

    “ERISA Affiliate”
means any Person who together with any Credit Party is treated as a single
employer within the meaning of Section 414(b), (c), (m) or (o) of the Code or
Section 4001(b) of ERISA.

     

    “Eurodollar Reserve
Percentage” means, for any day, the percentage (expressed as a decimal
and rounded upwards, if necessary, to the next higher 1/100th of 1%) which is in
effect for such day as prescribed by the Board of Governors of the Federal
Reserve System (or any successor) for determining the maximum reserve
requirement (including, without limitation, any basic, supplemental or emergency
reserves) in respect of eurocurrency liabilities or any similar category of
liabilities for a member bank of the Federal Reserve System in New York
City.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    “Event of Default”
means any of the events specified in Section 13.1; provided that any
requirement for passage of time, giving of notice, or any other condition, has
been satisfied.

     

    “Excluded Taxes”
means, with respect to the Administrative Agent, any Lender, the Canadian Dollar
Lender, the Issuing Lender or any other recipient of any payment to be made by
or on account of any obligation of any Borrower hereunder, (a) taxes imposed on
or measured by its overall net income (however denominated), and franchise taxes
imposed on it (in lieu of net income taxes), by the jurisdiction (or any
political subdivision thereof) under the laws of which such recipient is
organized or in which its principal office is located or, in the case of any
Lender, in which its applicable Lending Office is located, (b) any branch
profits taxes imposed by the United States or any similar tax imposed by any
other jurisdiction in which such Borrower is located and (c) in the case of a
Foreign Lender (other than an assignee pursuant to a request by the Borrowers
under Section
5.12(b)), any withholding tax that is imposed on amounts payable to such
Foreign Lender at the time such Foreign Lender becomes a party hereto (or
designates a new Lending Office) or is attributable to such Foreign Lender’s
failure or inability (other than as a result of a Change in Law) to comply with
Section
5.11(e), except to the extent that such Foreign Lender (or its assignor,
if any) was entitled, at the time of designation of a new Lending Office (or
assignment), to receive additional amounts from the applicable Borrower with
respect to such withholding tax pursuant to Section
5.11(a).  Notwithstanding anything to the contrary contained in
this definition, “Excluded Taxes” shall not include any withholding tax imposed
at any time on payments made by or on behalf of the Canadian Borrower
(including, without limitation, any payment made to any Lender under Section 2.2(b)(iii))
or any other Foreign Subsidiary to any Lender hereunder or under any other Loan
Document, provided that such
Lender shall have complied with the last paragraph of Section
5.11(e).

     

    “Existing Facility”
means that certain credit facility established pursuant to the Existing Credit
Agreement.

     

    “Existing Credit
Agreement” has the meaning set forth in the Statement of
Purpose.

     

    “Existing Letters of
Credit” means all letters of credit described on Schedule
1.1.

     

    “Extensions of Credit”
means, as to any Lender at any time, (a) an amount equal to the sum of (i) the
aggregate principal amount of all Revolving Credit Loans made by such Lender
then outstanding, (ii) such Lender’s Revolving Credit Commitment Percentage of
the L/C Obligations then outstanding, (iii) such Lender’s Revolving Credit
Commitment Percentage of the Swingline Loans then outstanding, (iv) such
Lender’s Revolving Credit Commitment Percentage of the Canadian Dollar Loans
then outstanding and (v) the aggregate principal amount of the Term Loan made by
such Lender then outstanding or (b) the making of any Loan or participation in
any Letter of Credit by such Lender, as the context requires.

     

    “FDIC” means the
Federal Deposit Insurance Corporation, or any successor thereto.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    “February 2007 Note Purchase
Agreement” means that certain Note Purchase Agreement dated as of
February 1, 2007, as such agreement may be amended, restated, supplemented
or otherwise modified, in each case in accordance with Section 11.10 of
this Agreement.

     

    “February 2007
Notes” means the senior unsecured floating rate notes issued by the US
Borrower pursuant to the February 2007 Note Purchase Agreement in an initial
aggregate principal amount of $100,000,000.

     

    “Federal Funds Rate”
means, for any day, the rate per annum equal to the weighted average of the
rates on overnight federal funds transactions with members of the Federal
Reserve System arranged by federal funds brokers on such day (or, if such day is
not a Business Day, for the immediately preceding Business Day), as published by
the Federal Reserve Bank of New York on the Business Day next succeeding such
day; provided
that if such rate is not so published for any day which is a Business Day, the
average of the quotation for such day on such transactions received by the
Administrative Agent from three (3) Federal funds brokers of recognized standing
selected by the Administrative Agent.

     

    “Fee Letter” means the
separate letter agreement executed by the US Borrower and the Administrative
Agent and/or certain of its affiliates dated November 20, 2007, as amended, restated,
supplemented or otherwise modified from time to time in accordance with the
terms hereof.

     

    “Fiscal Year” means
the fiscal year of the US Borrower and its Subsidiaries ending on December
31.

     

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

     

    “Foreign Subsidiary”
means any Subsidiary 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.

     

    “GAAP” means generally
accepted accounting principles, as recognized by the American Institute of
Certified Public Accountants and the Financial Accounting Standards Board,
consistently applied and maintained on a consistent basis for the US Borrower
and its Subsidiaries throughout the period indicated and (subject to Section 15.10)
consistent with the prior financial practice of the US Borrower and its
Subsidiaries.

     

    “Governmental
Approvals” means all authorizations, consents, approvals, permits,
licenses and exemptions of, registrations and filings with, and reports to, all
Governmental Authorities.

     

    “Governmental
Authority” means the government of the United States or any other nation,
or of any political subdivision thereof, whether state, provincial or local, and
any agency, authority, instrumentality, regulatory body, court, central bank or
other entity exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government (including any
supra-national bodies such as the European Union or the European Central
Bank).

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    “Guaranty Obligation”
means, with respect to the US Borrower and its Subsidiaries, without
duplication, any obligation, contingent or otherwise, of any such Person
pursuant to which such Person has directly or indirectly guaranteed any
Indebtedness of any other Person and, without limiting the generality of the
foregoing, any obligation, direct or indirect, contingent or otherwise, of any
such Person (a) to purchase or pay (or advance or supply funds for the
purchase or payment of) such Indebtedness (whether arising by virtue of
partnership arrangements, by agreement to keep well, to purchase assets, goods,
securities or services, to take-or-pay, or to maintain financial statement
condition or otherwise) or (b) entered into for the purpose of assuring in
any other manner the obligee of such Indebtedness of the payment thereof or to
protect such obligee against loss in respect thereof (in whole or in part);
provided, that
the term Guaranty Obligation shall not include endorsements for collection or
deposit in the ordinary course of business.

     

    “Hazardous Materials”
means any substances or materials (a) which are or become defined as hazardous
wastes, hazardous substances, pollutants, contaminants, chemical substances or
mixtures or toxic substances under any Environmental Law, (b) which are
toxic, explosive, corrosive, flammable, infectious, radioactive, carcinogenic,
mutagenic or otherwise harmful to human health or the environment and are or
become regulated by any Governmental Authority, (c) the presence of which
require investigation or remediation under any Environmental Law or common law,
(d) the discharge or emission or release of which requires a permit or license
under any Environmental Law or other Governmental Approval, (e) which are
deemed to constitute a nuisance or a trespass which pose a health or safety
hazard to Persons or neighboring properties, (f) which consist of
underground or aboveground storage tanks, whether empty, filled or partially
filled with any substance, or (g) which contain, without limitation, asbestos,
polychlorinated biphenyls, urea formaldehyde foam insulation, petroleum
hydrocarbons, petroleum derived substances or waste, crude oil, nuclear fuel,
natural gas or synthetic gas.

     

    “Hedging Agreement”
means any agreement with respect to any Interest Rate Contract, forward rate
agreement, commodity swap, forward foreign exchange agreement, currency swap
agreement, cross-currency rate swap agreement, currency option agreement or
other agreement or arrangement designed to alter the risks of any Person arising
from fluctuations in interest rates, currency values or commodity prices, all as
amended, restated, supplemented or otherwise modified from time to
time.

     

    “Hedging Obligations”
means all existing or future payment and other obligations owing by any Credit
Party under any Hedging Agreement (which such Hedging Agreement is permitted
hereunder) with any Person that is a Lender or an Affiliate of a Lender at the
time such Hedging Agreement is executed.

     

    “Increase Effective
Date” means the date, which shall be a Business Day, on or before the
Revolving Credit Maturity Date, but no earlier than fifteen (15) days after any
Increase Notification Date, on which each of the Increasing Revolving Credit
Lenders increase (or, in the case of New Revolving Credit Lenders, provide)
their respective Revolving Credit Commitments to the US Borrower pursuant to
Section
2.9.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    “Increase
Notification” means the written notice by the US Borrower of its desire
to increase the Revolving Credit Commitment pursuant to Section
2.9.

     

    “Increase Notification
Date” means the date on which the Increase Notification is received by
the Administrative Agent.

     

    “Increasing Revolving Credit
Lenders” has the meaning assigned thereto in Section
2.9(b).

     

    “Indebtedness” means,
with respect to the US Borrower and its Subsidiaries at any date and without
duplication, the sum of the following:

     

    (a) all
liabilities, obligations and indebtedness for borrowed money including, but not
limited to, obligations evidenced by bonds, debentures, notes or other similar
instruments of any such Person;

     

    (b) all
obligations to pay the deferred purchase price of property or services of any
such Person (including, without limitation, all obligations under
non-competition, earn-out or similar agreements), except trade payables arising
in the ordinary course of business not more than ninety (90) days past
due;

     

    (c) the
Attributable Indebtedness of such Person with respect to such Person’s
obligations in respect of Capital Leases and Synthetic Leases (regardless of
whether accounted for as indebtedness under GAAP);

     

    (d) all
indebtedness of any other Person secured by a Lien on any asset owned or being
purchased by such Person (including indebtedness arising under conditional sales
or other title retention agreements), whether or not such indebtedness shall
have been assumed by such Person or is limited in recourse;

     

    (e) all
Guaranty Obligations of any such Person;

     

    (f) all
obligations, contingent or otherwise, of any such Person relative to the face
amount of letters of credit, whether or not drawn, including, without
limitation, any Reimbursement Obligation, and banker’s acceptances issued for
the account of any such Person;

     

    (g) all
obligations of any such Person to redeem, repurchase, exchange, defease or
otherwise make payments in respect of Capital Stock of such Person;

     

    (h) all net
obligations incurred by any such Person pursuant to Hedging
Agreements;

     

    (i) the
outstanding attributed principal amount under any asset securitization program;
and

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    (j) all
outstanding payment obligations with respect to Synthetic Leases.

     

    For all
purposes hereof, the indebtedness of any Person shall include the Indebtedness
of any partnership or joint venture (other than a joint venture that is itself a
corporation or limited liability company) in which such Person is a general
partner or a joint venturer, unless such indebtedness is expressly made
non-recourse to such Person.  The amount of any net obligation under
any Hedging Agreement on any date shall be deemed to be the Termination Value
thereof as of such date.

     

    “Indemnified Taxes”
means Taxes and Other Taxes other than Excluded Taxes.

     

    “Insurance and Condemnation
Event” means the receipt by either Borrower or any Subsidiary of any cash
insurance proceeds or condemnation award payable by reason of theft, loss,
physical destruction or damage, taking or similar event with respect to any of
their respective property or assets.

     

    “Interest Expense”
means, with respect to the US Borrower and its Subsidiaries for any period, the
gross interest expense (including, without limitation, interest expense
attributable to Capital Leases and all net payment obligations pursuant to
Hedging Agreements) of the US Borrower and its Subsidiaries, all determined for
such period on a Consolidated basis, without duplication, in accordance with
GAAP.

     

    “Interest Period” has
the meaning assigned thereto in Section
5.1(b).

     

    “Interest Rate
Contract” means any interest rate swap agreement, interest rate cap
agreement, interest rate floor agreement, interest rate collar agreement,
interest rate option or any other agreement regarding the hedging of interest
rate risk exposure executed in connection with hedging the interest rate
exposure of any Person and any confirming letter executed pursuant to such
agreement, all as amended, restated, supplemented or otherwise modified from
time to time.

     

    “ISP98” means the
International Standby Practices (1998 Revision, effective January 1, 1999),
International Chamber of Commerce Publication No. 590.

     

    “Issuing Lender” means
Wachovia (or any successor thereto), in its capacity as issuer of any Letter of
Credit (including each Existing Letter of Credit) under this
Agreement.

     

    “L/C Commitment” means
the lesser of (a) Twenty Million Dollars ($20,000,000) and (b) the Revolving
Credit Commitment.

     

    “L/C Facility” means
the letter of credit facility established pursuant to Article
III.

     

    “L/C Obligations”
means at any time, an amount equal to the sum of (a) the aggregate undrawn and
unexpired amount of the then outstanding Letters of Credit and (b) the aggregate
amount of drawings under Letters of Credit which have not then been reimbursed
pursuant to Section
3.5.

     

    “L/C Participants”
means the collective reference to all the Revolving Credit Lenders other than
the Issuing Lender and the Canadian Dollar Lender.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    “Lender” means each
Person executing this Agreement as a Lender (including, without limitation, the
Canadian Dollar Lender, the Issuing Lender and the Swingline Lender unless the
context otherwise requires) set forth on the signature pages hereto and each
Person that hereafter becomes a party to this Agreement as a Lender pursuant to
Section
15.11.

     

    “Lender Addition and
Acknowledgement Agreement” shall have the meaning assigned thereto in
Section
2.9.

     

    “Lending Office”
means, with respect to any Lender, the office of such Lender maintaining such
Lender’s Extensions of Credit.

     

    “Letter of Credit
Application” means an application, in the form specified by the Issuing
Lender from time to time, requesting the Issuing Lender to issue a Letter of
Credit.

     

    “Letters of Credit”
means the collective reference to the letters of credit issued pursuant to Section 3.1 and the
Existing Letters of Credit.

     

    “LIBOR” means the rate
of interest per annum determined on the basis of the rate for deposits in
Dollars in minimum amounts of at least $5,000,000 for a period equal to the
applicable Interest Period which appears on the Reuters Page LIBOR01 (or any
successor page) at approximately 11:00 a.m. (London time) two (2) Business Days
prior to the first day of the applicable Interest Period (rounded upward, if
necessary, to the nearest 1/100th of
1%).  If, for any reason, such rate does not appear on Reuters Page
LIBOR01 (or any successor page), then “LIBOR” shall be determined by the
Administrative Agent to be the arithmetic average of the rate per annum at which
deposits in Dollars in minimum amounts of at least $5,000,000 would be offered
by first class banks in the London interbank market to the Administrative Agent
at approximately 11:00 a.m. (London time) two (2) Business Days prior to the
first day of the applicable Interest Period for a period equal to such Interest
Period.  Each calculation by the Administrative Agent of LIBOR shall
be conclusive and binding for all purposes, absent manifest error.

     

    “LIBOR Market Index
Rate” means, for any day, the rate of interest per annum (rounded upward,
if necessary, to the nearest 1/100th of 1%)
determined on the basis of the rate for deposits in Dollars in minimum amounts
of at least $5,000,000 for a period equal to one (1) month which appears on the
Reuters Page LIBOR01 (or any successor page) at approximately 11:00 a.m. (London
time) on such date (or if such day is not a Business Day, the immediately
preceding Business Day).  If, for any reason, such rate does not
appear on Reuters Page LIBOR01 (or any successor page), then the “LIBOR Market
Index Rate” shall be determined by the Administrative Agent to be the arithmetic
average of the rate per annum at which deposits in Dollars in minimum amounts of
at least $5,000,000 would be offered by first class banks in the London
interbank market to the Administrative Agent at approximately 11:00 a.m. (London
time) on such date for a period equal to one (1) month.  Each
calculation by the Administrative Agent of the LIBOR Market Index Rate shall be
conclusive and binding for all purposes, absent manifest error.  Each
change in the LIBOR Market Index Rate shall be effective as of the opening of
business on the day such change occurs.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    “LIBOR Rate” means a
rate per annum (rounded upwards, if necessary, to the next higher 1/100th of 1%)
determined by the Administrative Agent pursuant to the following
formula:

     

    LIBOR Rate
=                                              LIBOR                

     

    1.00-Eurodollar Reserve
Percentage

     

    “LIBOR Rate Loan”
means any Loan bearing interest at a rate based upon the LIBOR Rate as provided
in Section
5.1(a).

     

    “Lien” means, with
respect to any asset, any mortgage, leasehold mortgage, lien, pledge, charge,
security interest, hypothecation or encumbrance of any kind in respect of such
asset.  For the purposes of this Agreement, a Person shall be deemed
to own subject to a Lien any asset which it has acquired or holds subject to the
interest of a vendor or lessor under any conditional sale agreement, Capital
Lease or other title retention agreement relating to such asset.

     

    “Loan Documents”
means, collectively, this Agreement, each Note, the Letter of Credit
Applications, the Subsidiary Guaranty Agreement, the Fee Letter and each other
document, instrument, certificate and agreement executed and delivered by each
Borrower or any Subsidiary thereof in connection with this Agreement or
otherwise referred to herein or contemplated hereby (excluding any Hedging
Agreement), all as may be amended, restated, supplemented or otherwise modified
from time to time.

     

    “Loans” means the
collective reference to the Revolving Credit Loans, the Term Loan, the Canadian
Dollar Loans and the Swingline Loans and “Loan” means any of such
Loans.

     

    “Material Adverse
Effect” means, with respect to the US Borrower or any of its
Subsidiaries, a material adverse effect on (a) the properties, business,
operations or condition (financial or otherwise) of the US Borrower and its
Subsidiaries, taken as a whole, (b) the ability of the US Borrower or any
Subsidiary to perform its obligations under the Loan Documents to which it is a
party or (c) the legality, validity, binding effect or enforceability against
the US Borrower or any Subsidiary thereof of any Loan Document to which it is a
party.

     

    “Material Contract”
means (a) any contract or other agreement, written or oral, of the US Borrower
or any of its Subsidiaries involving monetary liability of or to any such Person
in an amount in excess of $5,000,000 per annum, or (b) any other contract
or agreement, written or oral, of the US Borrower or any of its Subsidiaries the
failure to comply with which could reasonably be expected to have a Material
Adverse Effect.

     

    “Multiemployer Plan”
means a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA to which
the US Borrower or any ERISA Affiliate is making, or is accruing an obligation
to make, or has accrued an obligation to make contributions within the preceding
six (6) years.

     

    “Net Cash Proceeds”
means, as applicable, (a) with respect to any Asset Disposition by any Credit
Party or any of its Subsidiaries, the gross cash proceeds received by such
Credit Party or any of its Subsidiaries from such sale less the sum of (i)
all Taxes assessed as a result of such sale and any other fees and expenses
incurred in connection therewith and (ii) the principal amount of, premium, if
any, and interest on any Indebtedness secured by a Lien on the asset (or a
portion thereof) sold, which Indebtedness is required to be repaid in connection
with such sale, (b) with respect to any Equity Issuance or Debt Issuance, the
gross cash proceeds received by either Borrower or any of its Subsidiaries from
such Equity Issuance or Debt Issuance less all legal,
underwriting and other fees and expenses incurred in connection therewith and
(c) with respect to any Insurance and Condemnation Event, the gross cash
proceeds received by either Borrower or any of its Subsidiaries from an
insurance company or Governmental Authority, as applicable, less the sum of (i)
all fees and expenses in connection therewith and (ii) the principal amount of,
premium, if any, and interest on any Indebtedness secured by a Lien on the asset
(or a portion thereof) subject to such loss or condemnation proceeding, which
Indebtedness is required to be repaid in connection with such loss or
condemnation proceeding.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    “Net Income” means,
with respect to the US Borrower and its Subsidiaries, for any period of
determination, the net income (or loss) of the US Borrower and its Subsidiaries
for such period, determined on a Consolidated basis in accordance with GAAP;
provided that
there shall be excluded from Net Income (a) the net income (or loss) of any
Person (other than a Subsidiary which shall be subject to clause (c) below), in
which the US Borrower or any of its Subsidiaries has a joint interest with a
third party, except to the extent such net income is actually paid to the US
Borrower or any of its Subsidiaries by dividend or other distribution during
such period, (b) the net income (or loss) of any Person accrued prior to the
date it becomes a Subsidiary of such Person or is merged into or consolidated
with such Person or any of its Subsidiaries or that Person’s assets are acquired
by such Person or any of its Subsidiaries except to the extent included pursuant
to the foregoing clause (a), (c) the net income (if positive) of any Subsidiary
to the extent that the declaration or payment of dividends or similar
distributions by such Subsidiary to the US Borrower or any of its Subsidiaries
of such net income (i) 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 such Subsidiary or (ii) would be
subject to any taxes payable on such dividends or distributions.

     

    “New Revolving Credit
Lender” has the meaning assigned thereto in Section
2.9(b).

     

    “Note” means a
Revolving Credit Note, a Term Note, a Canadian Note or a Swingline
Note.

     

    “Notice of Account
Designation” has the meaning assigned thereto in Section
2.4(b).

     

    “Notice of Borrowing”
has the meaning assigned thereto in Section
2.4(a).

     

    “Notice of
Conversion/Continuation” has the meaning assigned thereto in Section
5.2.

     

    “Notice of Repayment”
has the meaning assigned thereto in Section
2.5(c).

     

    “Obligations” means,
in each case, whether now in existence or hereafter arising: (a) the principal
of and interest on (including interest accruing after the filing of any
bankruptcy or similar petition) the Loans, (b) the L/C Obligations, (c) all
Hedging Obligations and (d) all other fees and commissions (including attorneys’
fees), charges, indebtedness, loans, liabilities, financial accommodations,
obligations, covenants and duties owing by the US Borrower or any of its
Subsidiaries to the Lenders or the Administrative Agent, in each case under any
Loan Document or otherwise, with respect to any Loan or Letter of Credit of
every kind, nature and description, direct or indirect, absolute or contingent,
due or to become due, contractual or tortious, liquidated or unliquidated, and
whether or not evidenced by any note.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    “OFAC” means the U.S.
Department of the Treasury’s Office of Foreign Assets Control.

     

    “Officer’s Compliance
Certificate” means a certificate of the chief financial officer or the
treasurer of the US Borrower substantially in the form of Exhibit
F.

     

    “Operating Lease”
means, as to any Person as determined in accordance with GAAP, any lease of
property (whether real, personal or mixed) by such Person as lessee which is not
a Capital Lease.

     

    “Original Closing
Date” means November 2, 2004.

     

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

     

    “Participant” has the
meaning assigned thereto in Section
15.11(d).

     

    “Payment Event of
Default” means any Event of Default pursuant to Sections 13.1(a) or
(b).

     

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

     

    “Pension Plan” means
any Employee Benefit Plan, other than a Multiemployer Plan, which is subject to
the provisions of Title IV of ERISA or Section 412 of the Code and which (a) is
maintained for the employees of the US Borrower or any ERISA Affiliates or (b)
has at any time within the preceding six (6) years been maintained for the
employees of the US Borrower or any of its current or former ERISA
Affiliates.

     

    “Permitted
Acquisition” means any Permitted Domestic Acquisition or any Permitted
Foreign Acquisition.

     

    “Permitted Acquisition
Consideration” means the aggregate amount of the purchase price
(including, but not limited to, any assumed debt, earn-outs (valued at the
maximum amount payable thereunder), deferred payments, or Capital Stock of the
US Borrower, net of the applicable acquired company’s cash (including Cash
Equivalents) balance as shown on its most recent financial statements delivered
in connection with the applicable Permitted Acquisition) to be paid on a
singular basis in connection with any applicable Permitted Acquisition as set
forth in the applicable acquisition documents executed by the US Borrower or any
of its Subsidiaries in order to consummate the applicable Permitted
Acquisition.

     

    “Permitted Domestic
Acquisition” means any acquisition permitted pursuant to Section
11.3(c).

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    “Permitted Foreign
Acquisition” means any acquisition permitted pursuant to Section
11.3(d).

     

    “Permitted Liens”
means the Liens permitted pursuant to Section
11.2.

     

    “Person” means any
natural person, corporation, limited liability company, trust, joint venture,
association, company, partnership, governmental authority or other
entity.

     

    “Prime Rate” means, at
any time, the rate of interest per annum publicly announced from time to time by
Wachovia as its prime rate.  Each change in the Prime Rate shall be
effective as of the opening of business on the day such change in such prime
rate occurs.  The parties hereto acknowledge that the rate announced
publicly by Wachovia as its prime rate is an index or base rate and shall not
necessarily be its lowest or best rate charged to its customers or other
banks.

     

    “Receivables Sale
Agreement” means that certain Receivables Sale Agreement dated as of
March 27, 2003 by and among SCP Distributors LLC, SCP Services LP and Superior
Pool Products LLC, as originators, and Superior Commerce, as buyer (as amended,
restated, supplemented or otherwise modified).

     

    “Register” has the
meaning assigned thereto in Section
15.11(c).

     

    “Reimbursement
Obligation” means the obligation of the US Borrower to reimburse the
Issuing Lender pursuant to Section 3.5 for
amounts drawn under Letters of Credit.

     

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

     

    “Rental Expense”
means, with respect to the US Borrower and its Subsidiaries for any period, the
aggregate fixed amounts payable with respect to Operating Leases of the US
Borrower and its Subsidiaries for such period, determined on a Consolidated
basis in accordance with GAAP.

     

    “Required Lenders”
means, at any date, any combination of Lenders having more than fifty percent
(50%) of the sum of (a) the aggregate amount of the Revolving Credit Commitment
plus (b) the aggregate outstanding principal amount of the Term Loan or, if the
Revolving Credit Commitment has been terminated, any combination of Lenders
holding more than fifty percent (50%) of the aggregate Extensions of Credit
(with the aggregate amount of each Lender’s risk participation and funded
participation in Canadian Dollar Loans, Swingline Loans and L/C Obligations
being deemed “held” by such Lender for purposes of this definition); provided that the
Revolving Credit Commitment of, and the portion of the Extensions of Credit, as
applicable, held or deemed held by, any Defaulting Lender shall be excluded for
purposes of making a determination of Required Lenders.

     

    “Responsible Officer”
means the chief executive officer, president, chief financial officer, treasurer
or assistant treasurer of a Credit Party or any other officer of a Credit Party
reasonably acceptable to the Administrative Agent.  Any document
delivered hereunder that is signed by a Responsible Officer of a Credit Party
shall be conclusively presumed to have been authorized by all necessary
corporate, partnership and/or other action on the part of such Credit Party and
such Responsible Officer shall be conclusively presumed to have acted on behalf
of such Credit Party.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    “Revolving Credit
Commitment” means (a) as to any Revolving Credit Lender, the obligation
of such Lender to make Revolving Credit Loans (including, without limitation, to
participate in Canadian Dollar Loans and Swingline Loans) and to issue or
participate in Letters of Credit issued for the account of any Borrower
hereunder, in an aggregate principal or face amount at any time outstanding not
to exceed the amount set forth opposite such Revolving Credit Lender’s name on
the Register, as the same may be increased, reduced or modified at any time or
from time to time pursuant to the terms hereof and (b) as to all Revolving
Credit Lenders, the aggregate commitment of all Revolving Credit Lenders to make
Revolving Credit Loans, as such amount may be increased, reduced or modified at
any time or from time to time pursuant to the terms hereof.  The
Revolving Credit Commitment of all Revolving Credit Lenders on the Closing Date
shall be Two-Hundred and Forty Million Dollars ($240,000,000).

     

    “Revolving Credit Commitment
Percentage” means, as to any Revolving Credit Lender at any time, the
ratio of (a) the amount of the Revolving Credit Commitment of such Revolving
Credit Lender to (b) the Revolving Credit Commitment of all Revolving Credit
Lenders.

     

    “Revolving Credit
Facility” means the revolving credit facility established pursuant to
Article
II.

     

    “Revolving Credit
Lender” means any Lender with a Revolving Credit Commitment.

     

    “Revolving Credit
Loans” means any revolving credit loan denominated in Dollars made to the
US Borrower pursuant to Section 2.1, and all
such revolving credit loans collectively as the context requires.

     

    “Revolving Credit Maturity
Date” means the earliest to occur of (a) December 20, 2012, (b) the
date of termination by the Borrowers pursuant to Section 2.6, or (c)
the date of termination by the Administrative Agent, on behalf of the Lenders,
pursuant to Section
13.2(a).

     

    “Revolving Credit
Note” means a promissory note made by the US Borrower in favor of a
Revolving Credit Lender evidencing the Revolving Credit Loans made by such
Revolving Credit Lender, substantially in the form of Exhibit
A-1 hereto, and any amendments, supplements and modifications thereto,
any substitutes therefor, and any replacements, restatements, renewals or
extension thereof, in whole or in part.

     

    “Sanctioned Entity”
shall mean (a) an agency of the government of, (b) an organization directly or
indirectly controlled by, or (c) a person resident in, a country that is subject
to a sanctions program identified on the list maintained by OFAC and available
at http://www.treas.gov/offices/enforcement/ofac/programs,
or as otherwise published from time to time as such program may be applicable to
such agency, organization or person.

     

    “Sanctioned Person”
shall mean a person named on the list of Specially Designated Nationals or
Blocked Persons maintained by OFAC available at http://www.treas.gov/offices/enforcement/ofac/sdn/index.html,
or as otherwise published from time to time.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    “Second Amendment Effective
Date” means December 20, 2005.

     

    “Solvent” means, as to
the US Borrower and its Subsidiaries on a particular date, that any such Person
(a) has capital sufficient to carry on its business and transactions and all
business and transactions in which it is about to engage and is able to pay its
debts as they mature, (b) has assets having a value, both at fair valuation
and at present fair saleable value, greater than the amount required to pay its
probable liabilities (including contingencies), and (c) does not believe that it
will incur debts or liabilities beyond its ability to pay such debts or
liabilities as they mature.

     

    “Subordinated
Indebtedness” means the collective reference to any Indebtedness of the
US Borrower or any Subsidiary subordinated in right and time of payment to the
Obligations and containing such other terms and conditions, in each case as are
satisfactory to the Required Lenders.

     

    “Subsidiary” means as
to any Person, any corporation, partnership, limited liability company or other
entity of which more than fifty percent (50%) of the outstanding Capital Stock
having ordinary voting power to elect a majority of the board of directors or
other managers of such corporation, partnership, limited liability company or
other entity is at the time owned by or the management is otherwise controlled,
directly or indirectly, by such Person (irrespective of whether, at the time,
Capital Stock of any other class or classes of such corporation, partnership,
limited liability company or other entity shall have or might have voting power
by reason of the happening of any contingency).  Unless otherwise
qualified references to “Subsidiary” or “Subsidiaries” herein shall refer to
those of the US Borrower.

     

    “Subsidiary
Guarantors” means each Domestic Subsidiary of the US Borrower in
existence on the Closing Date (other than the Superior Commerce) or which
becomes a party to the Subsidiary Guaranty Agreement pursuant to Section
9.11.

     

    “Subsidiary Guaranty
Agreement” means the amended and restated unconditional guaranty
agreement of even date executed by the Subsidiary Guarantors in favor of the
Administrative Agent for the ratable benefit of itself and the Lenders,
substantially in the form of Exhibit H,
as amended, restated, supplemented or otherwise modified from time to
time.

     

    “Superior Commerce”
means Superior Commerce LLC, a Delaware limited liability company, and its
successors and assigns.

     

    “Swingline Commitment”
means the lesser of (a) Fifteen Million Dollars ($15,000,000) and (b) the Revolving
Credit Commitment.

     

    “Swingline Facility”
means the swingline facility established pursuant to Section
2.3.

     

    “Swingline Lender”
means Wachovia in its capacity as swingline lender hereunder.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    “Swingline Loan” means
any swingline loan made by the Swingline Lender to the US Borrower pursuant to
Section 2.3,
and all such swingline loans collectively as the context requires.

     

    “Swingline Note” means
a promissory note made by the US Borrower in favor of the Swingline Lender
evidencing the Swingline Loans made by the Swingline Lender, substantially in
the form of Exhibit
A-2 hereto, and any amendments, supplements and modifications thereto,
any substitutes therefor, and any replacements, restatements, renewals or
extension thereof, in whole or in part.

     

    “Swingline Termination
Date” means the first to occur of (a) the resignation of Wachovia as
Administrative Agent in accordance with Section 14.9 and (b)
the Revolving Credit Maturity Date.

     

    “Synthetic Lease”
means any synthetic lease, tax retention operating lease, off-balance sheet loan
or similar off-balance sheet financing product where such transaction is
considered borrowed money indebtedness for tax purposes but is classified as an
Operating Lease in accordance with GAAP.

     

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

     

    “Term Loan Commitment”
means (a) as to any Term Loan Lender, the obligation of such Term Loan Lender to
make a portion of the Term Loans to the US Borrower hereunder in an aggregate
principal amount not to exceed the amount set forth opposite such Term Loan
Lender’s name on the Register, as such amount may be increased, reduced or
otherwise modified at any time or from time to time pursuant to the terms
hereof  and (b) as to all Term Loan Lenders, the aggregate commitments
of all Term Loan Lenders to make the Term Loans hereunder as such amount may be
increased, reduced or otherwise modified at any time or from time to time
pursuant to the terms hereof.

     

    “Term Loan Commitment
Percentage” means, as to any Term Loan Lender, the ratio of (a) the
outstanding principal balance of the Term Loan held by such Term Loan Lender to
(b) the aggregate outstanding principal balance of the Term Loan held by all
Term Loan Lenders.

     

    “Term Loan Facility”
means the term loan facility established pursuant to Article
IV.

     

    “Term Loan Lender”
means any Lender holding a portion of the Term Loans.

     

    “Term Loan Maturity
Date” means the first to occur of (a) December 20, 2010, or (b) the date
the Term Loan is declared due and payable by the Administrative Agent, on behalf
of the Lenders, pursuant to Section
13.2(a).

     

    “Term Loans” means the
term loans made to the US Borrower as referred to in Section
4.1.

     

    “Term Note” means a
promissory note made by the US Borrower in favor of a Term Loan Lender
evidencing the portion of the Term Loans of such Term Loan Lender, substantially
in the form of Exhibit
A-4 hereto, and any amendments, supplements and modifications thereto,
any substitutes therefor, and any replacements, restatements, renewals or
extension thereof, in whole or in part.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    “Termination Event”
means except for any such event or condition that could not reasonably be
expected to have a Material Adverse Effect: (a) a “Reportable Event”
described in Section 4043 of ERISA for which the notice requirement has not been
waived by the PBGC, or (b) the withdrawal of the US Borrower or any ERISA
Affiliate from a Pension Plan during a plan year in which it was a “substantial
employer” as defined in Section 4001(a)(2) of ERISA, or (c) the termination of a
Pension Plan, the filing of a notice of intent to terminate a Pension Plan or
the treatment of a Pension Plan amendment as a termination, under Section 4041
of ERISA, if the plan assets are not sufficient to pay all plan liabilities, or
(d) the institution of proceedings to terminate, or the appointment of a trustee
with respect to, any Pension Plan by the PBGC, or (e) any other event or
condition which would constitute grounds under Section 4042(a) of ERISA for the
termination of, or the appointment of a trustee to administer, any Pension Plan,
or (f) the imposition of a Lien pursuant to Section 412 of the Code or Section
302 of ERISA, or (g) the partial or complete withdrawal of the US Borrower
of any ERISA Affiliate from a Multiemployer Plan if withdrawal liability is
asserted by such plan, or (h) any event or condition which results in the
reorganization or insolvency of a Multiemployer Plan under Sections 4241 or 4245
of ERISA, or (i) any event or condition which results in the termination of a
Multiemployer Plan under Section 4041A of ERISA or the institution by PBGC of
proceedings to terminate a Multiemployer Plan under Section 4042 of
ERISA.

     

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

     

    “Total Funded
Indebtedness” means, with respect to the US Borrower and its Subsidiaries
at any date and without duplication, the sum of the following:

     

    (a) all
liabilities, obligations and indebtedness for borrowed money including, but not
limited to, obligations evidenced by bonds, debentures, notes or other similar
instruments of any such Person;

     

    (b) all
obligations to pay the deferred purchase price of property or services of any
such Person (including, without limitation, all obligations under
non-competition, earn-out or similar agreements), except trade payables arising
in the ordinary course of business not more than ninety (90) days past
due;

     

    (c) the
Attributable Indebtedness of such Person with respect to such Person’s
obligations in respect of Capital Leases and Synthetic Leases (regardless of
whether accounted for as indebtedness under GAAP);

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    (d) all
indebtedness of any other Person secured by a Lien on any asset owned or being
purchased by such Person (including indebtedness arising under conditional sales
or other title retention agreements), whether or not such indebtedness shall
have been assumed by such Person or is limited in recourse;

     

    (e) all
obligations, contingent or otherwise, of any such Person relative to the face
amount of letters of credit, whether or not drawn, including, without
limitation, any Reimbursement Obligation, and banker’s acceptances issued for
the account of any such Person; and

     

    (f) all
Guaranty Obligations of any such Person with respect to outstanding Indebtedness
of the types specified in clauses (a) through (e) above.

     

    For all
purposes hereof, the Total Funded Indebtedness of any Person shall include the
indebtedness of any partnership or joint venture (other than a joint venture
that is itself a corporation or limited liability company) in which such Person
is a general partner or a joint venturer, unless such Indebtedness is expressly
made non-recourse to such Person.

     

    “Transferred Assets”
has the meaning assigned thereto in the definition of “Accounts
Securitization”.

     

    “UCC” means the
Uniform Commercial Code as in effect in the State of North Carolina, as amended
or modified from time to time.

     

    “Uniform Customs”
means the Uniform Customs and Practice for Documentary Credits (1993 Revision),
effective January, 1994 International Chamber of Commerce Publication No.
500.

     

    “United States” means
the United States of America.

     

    “US Borrower” has the
meaning assigned thereto in the introductory paragraph hereto.

     

    “US Borrower Guaranteed
Obligations” shall have the meaning set forth in Section
12.1.

     

    “US Borrower Guaranty”
means the unconditional guaranty of the payment of the Obligations of the
Canadian Borrower by the US Borrower under Article XII
hereof.

     

    “Wachovia” means
Wachovia Bank, National Association, a national banking association, and its
successors.

     

    “Wachovia Canada” means
Wachovia Capital Finance Corporation (Canada) and its successors.

     

    “Wholly-Owned” means,
with respect to a Subsidiary, that all of the shares of Capital Stock of such
Subsidiary are, directly or indirectly, owned or controlled by the US Borrower
and/or one or more of its Wholly-Owned Subsidiaries (except for directors’
qualifying shares or other shares required by Applicable Law to be owned by a
Person other than the US Borrower).

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    SECTION
1.2 Other Definitions and
Provisions

     

    With
reference to this Agreement and each other Loan Document, unless otherwise
specified herein or in such other Loan Document:  (a) the definitions
of terms herein shall apply equally to the singular and plural forms of the
terms defined, (b) whenever the context may require, any pronoun shall include
the corresponding masculine, feminine and neuter forms, (c) the words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without
limitation”, (d) the word “will” shall be construed to have the same meaning and
effect as the word “shall”, (e) any definition of or reference to any agreement,
instrument or other document herein shall be construed as referring to such
agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (f) any reference
herein to any Person shall be construed to include such Person’s successors and
assigns, (g) the words “herein”, “hereof” and “hereunder”, and words of similar
import, shall be construed to refer to this Agreement in its entirety and not to
any particular provision hereof, (h) all references herein to Articles,
Sections, Exhibits and Schedules shall be construed to refer to Articles and
Sections of, and Exhibits and Schedules to, this Agreement, (i) the words
“asset” and “property” shall be construed to have the same meaning and effect
and to refer to any and all tangible and intangible assets and properties,
including cash, securities, accounts and contract rights, (j) the term
“documents” includes any and all instruments, documents, agreements,
certificates, notices, reports, financial statements and other writings, however
evidenced, whether in physical or electronic form, (k) in the computation of
periods of time from a specified date to a later specified date, the word “from”
means “from and including;” the words “to” and “until” each mean “to but
excluding;” and the word “through” means “to and including”, and (l) Section
headings herein and in the other Loan Documents are included for convenience of
reference only and shall not affect the interpretation of this Agreement or any
other Loan Document.

     

    SECTION
1.3 Accounting
Terms

     

    All
accounting terms not specifically or completely defined herein shall be
construed in conformity with, and all financial data (including financial ratios
and other financial calculations) required to be submitted pursuant to this
Agreement shall be prepared in conformity with, GAAP applied on a consistent
basis, as in effect from time to time, applied in a manner consistent with that
used in preparing the audited financial statements required by Section 8.1(b), except as otherwise
specifically prescribed herein.

     

    SECTION
1.4 UCC
Terms

     

    Terms
defined in the UCC in effect on the Closing Date and not otherwise defined
herein shall, unless the context otherwise indicates, have the meanings provided
by those definitions.  Subject to the foregoing, the term “UCC” refers, as of
any date of determination, to the UCC then in effect.

     

    SECTION
1.5 Rounding

     

    .  Any
financial ratios required to be maintained by the Borrowers pursuant to this
Agreement shall be calculated by dividing the appropriate component by the other
component, carrying the result to one place more than the number of places by
which such ratio is expressed herein and rounding the result up or down to the
nearest number (with a rounding-up if there is no nearest number).

     

    SECTION
1.6 References to Agreement and
Laws

     

    Unless
otherwise expressly provided herein, (a) references to formation documents,
governing 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, but only
to the extent that such amendments, restatements, extensions, supplements and
other modifications are not prohibited by any Loan Document; and (b) references
to any Applicable Law shall include all statutory and regulatory provisions
consolidating, amending, replacing, supplementing or interpreting such
Applicable Law.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    SECTION
1.7 Times of
Day

     

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

     

    SECTION
1.8 Letter of Credit
Amounts

     

    Unless
otherwise specified, all references herein to the amount of a Letter of Credit
at any time shall be deemed to mean the maximum face amount of such Letter of
Credit after giving effect to all increases thereof contemplated by such Letter
of Credit or the Letter of Credit Application therefor, whether or not such
maximum face amount is in effect at such time.

     

    ARTICLE
II                                

    REVOLVING CREDIT
FACILITY

    SECTION
2.1 Revolving Credit
Loans

     

    Subject
to the terms and conditions of this Agreement, and in reliance upon the
representations and warranties set forth herein, each Revolving Credit Lender
severally agrees to make Revolving Credit Loans to the US Borrower in Dollars
from time to time from the Closing Date through, but not including, the
Revolving Credit Maturity Date as requested by the US Borrower in accordance
with the terms of Section 2.4; provided that, based
upon the Dollar Amount of all outstanding Loans and L/C Obligations, (a) the
aggregate principal amount of all outstanding Revolving Credit Loans (after
giving effect to any amount requested) shall not exceed the Revolving Credit
Commitment less
the sum of all outstanding Canadian Dollar Loans, Swingline Loans and L/C
Obligations and (b) the aggregate principal amount of all outstanding Revolving
Credit Loans from any Revolving Credit Lender to the US Borrower shall not at
any time exceed such Revolving Credit Lender’s Revolving Credit Commitment less such Revolving
Credit Lender’s Revolving Credit Commitment Percentage of all outstanding
Canadian Dollar Loans, Swingline Loans and L/C Obligations.  Each
Revolving Credit Loan by a Revolving Credit Lender shall be in a principal
amount equal to such Revolving Credit Lender’s Revolving Credit Commitment
Percentage of the aggregate principal amount of Revolving Credit Loans requested
on such occasion.  Subject to the terms and conditions hereof, the US
Borrower may borrow, repay and reborrow Revolving Credit Loans hereunder until
the Revolving Credit Maturity Date.

     

    SECTION
2.2 Canadian Dollar
Loans

     

     

     

    (a) Availability.  Subject
to the terms and conditions of this Agreement, and in reliance upon the
representations and warranties set forth herein, the Canadian Dollar Lender
agrees to make Canadian Dollar Loans to the Canadian Borrower in Canadian
Dollars from time to time from the Closing Date through, but not including, the
Revolving Credit Maturity Date as requested by the US Borrower, on behalf of the
Canadian Borrower, in accordance with the terms of Section 2.4; provided that, based
upon the Dollar Amount of all outstanding Loans and L/C Obligations, the
aggregate principal amount of all outstanding Canadian Dollar Loans (after
giving effect to any amount requested) shall not exceed the lesser of (i) the
Revolving Credit Commitment less the sum of all
outstanding Revolving Credit Loans, Swingline Loans and L/C Obligations and (ii)
the Canadian Dollar Commitment.  Subject to the terms and conditions
hereof, the Canadian Borrower may borrow, repay and reborrow Canadian Dollar
Loans hereunder until the Revolving Credit Maturity Date.

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    (b) Refunding of Canadian Dollar
Loans.

     

    (i) Upon the
occurrence and during the continuance of an Event of Default, each Canadian
Dollar Loan may, at the discretion of the Canadian Dollar Lender, be converted
immediately to a Base Rate Loan funded in Dollars by the Revolving Credit
Lenders in an amount equal to the Dollar Amount of such Canadian Dollar Loan;
provided that
the Borrowers shall pay to the Canadian Dollar Lender any and all costs, fees
and other expenses incurred by the Canadian Dollar Lender in effecting such
conversion.  Such Base Rate Loan shall thereafter be reflected as a
Revolving Credit Loan of the Revolving Credit Lenders to the US Borrower on the
books and records of the Administrative Agent and the US Borrower shall lend the
proceeds of such Base Rate Loan to the Canadian Borrower to repay the applicable
Canadian Dollar Loans.  Each Revolving Credit Lender shall fund its
respective Revolving Credit Commitment Percentage of such Revolving Credit Loan
as required to repay Canadian Dollar Loans outstanding to the Canadian Dollar
Lender upon such demand by the Canadian Dollar Lender in no event later than
1:00 p.m. on the next succeeding Business Day after such demand is
made.  No Revolving Credit Lender’s obligation to fund its respective
Revolving Credit Commitment Percentage of any Revolving Credit Loan required to
repay such Canadian Dollar Loan shall be affected by any other Revolving Credit
Lender’s failure to fund its Revolving Credit Commitment Percentage of such
Revolving Credit Loan, nor shall any Revolving Credit Lender’s Revolving Credit
Commitment Percentage be increased as a result of any such failure of any other
Revolving Credit Lender to fund its Revolving Credit Commitment Percentage of
such Revolving Credit Loan.

     

    (ii) The
Canadian Borrower shall pay to the Canadian Dollar Lender on demand the amount
of such Canadian Dollar Loans to the extent that the Revolving Credit Lenders
fail to refund in full the outstanding Canadian Dollar Loans requested or
required to be refunded.  In addition, the Canadian Borrower hereby
authorizes the Administrative Agent to charge any account maintained by the
Canadian Borrower with the Canadian Dollar Lender or any Affiliate thereof (up to the amount
available therein) in order to immediately pay the Canadian Dollar Lender the
amount of such Canadian Dollar Loans to the extent amounts received from the
Revolving Credit Lenders are not sufficient to repay in full the outstanding
Canadian Dollar Loans requested or required to be refunded.  If any
portion of any such amount paid to the Canadian Dollar Lender shall be recovered
by or on behalf of the Canadian Borrower or US Borrower from the Canadian Dollar
Lender in bankruptcy or otherwise, the loss of the amount so recovered shall be
ratably shared among all the Revolving Credit Lenders in accordance with their
respective Revolving Credit Commitment Percentages.

     

    (iii) Each
Revolving Credit Lender acknowledges and agrees that its obligation to refund
Canadian Dollar Loans in accordance with the terms of this Section is absolute
and unconditional and shall not be affected by any circumstance whatsoever,
including, without limitation, non-satisfaction of the conditions set forth in
Article
VI.  Further, each Revolving Credit Lender acknowledges and
agrees that if prior to the refunding of any outstanding Canadian Dollar Loans
pursuant to this Section, a Bankruptcy Event of Default shall have occurred,
each Revolving Credit Lender will, on the date the applicable Revolving Credit
Loan would have been made to refund such Canadian Dollar Loans, purchase an
undivided participating interest in such Canadian Dollar Loans in an amount
equal to its Revolving Credit Commitment Percentage of the aggregate amount of
such Canadian Dollar Loans.  Each Revolving Credit Lender will
immediately transfer to the Administrative Agent, for the account of the
Canadian Dollar Lender, in immediately available funds in Canadian Dollars, the
amount of its participation.  Whenever, at any time after the Canadian
Dollar Lender has received from any Revolving Credit Lender such Revolving
Credit Lender’s participating interest in the refunded Canadian Dollar Loans,
the Canadian Dollar Lender receives any payment on account thereof, the Canadian
Dollar Lender will distribute to such Revolving Credit Lender its participating
interest in such amount (appropriately adjusted, in the case of interest
payments, to reflect the period of time during which such Lender’s participating
interest was outstanding and funded).

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

    (iv) In the
event that any Revolving Credit Lender fails to make payment to the Canadian
Dollar Lender of any amount due under this Section, the Administrative Agent, on
behalf of the Canadian Dollar Lender, shall be entitled to receive, retain and
apply against such obligation the principal and interest otherwise payable to
such Revolving Credit Lender hereunder until the Canadian Dollar Lender receives
such payment from such Lender or such obligation is otherwise fully
satisfied.  In addition to the foregoing, if for any reason any
Revolving Credit Lender fails to make payment to the Canadian Dollar Lender of
any amount due under this Section, such Revolving Credit Lender shall be deemed,
at the option of the Administrative Agent, to have unconditionally and
irrevocably purchased from the Canadian Dollar Lender, without recourse or
warranty, an undivided interest and participation in the applicable Canadian
Dollar Loan, and such interest and participation may be recovered from such
Revolving Credit Lender together with interest thereon at the Federal Funds Rate
for each day during the period commencing on the date of demand and ending on
the date such amount is received.

     

    SECTION
2.3 Swingline
Loans

     

     

    (a) Availability.  Subject
to the terms and conditions of this Agreement, the Swingline Lender agrees to
make Swingline Loans to the US Borrower from time to time from the Closing Date
through, but not including, the Swingline Termination Date; provided, that (i)
all Swingline Loans shall be denominated in Dollars and (ii) based upon the
Dollar Amount of all outstanding Loans and L/C Obligations, the aggregate
principal amount of all outstanding Swingline Loans (after giving effect to any
amount requested), shall not exceed the lesser of (A) the Revolving Credit
Commitment less
the sum of all outstanding Revolving Credit Loans, Canadian Dollar Loans and L/C
Obligations and (B) the Swingline Commitment.  Subject to the terms
and conditions hereof, the US Borrower may borrow, repay and reborrow Swingline
Loans hereunder until the Swingline Termination Date.

     

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    (b) Refunding.

     

    (i) Swingline
Loans shall be refunded by the Revolving Credit Lenders on demand by the
Swingline Lender.  Such refundings shall be made by the Revolving
Credit Lenders in accordance with their respective Revolving Credit Commitment
Percentages and shall thereafter be reflected as Revolving Credit Loans of the
Revolving Credit Lenders on the books and records of the Administrative
Agent.  Each Revolving Credit Lender shall fund its respective
Revolving Credit Commitment Percentage of Revolving Credit Loans as required to
repay Swingline Loans outstanding to the Swingline Lender upon demand by the
Swingline Lender but in no event later than 1:00 p.m. on the next succeeding
Business Day after such demand is made.  No Revolving Credit Lender’s
obligation to fund its respective Revolving Credit Commitment Percentage of a
Swingline Loan shall be affected by any other Revolving Credit Lender’s failure
to fund its Revolving Credit Commitment Percentage of a Swingline Loan, nor
shall any Revolving Credit Lender’s Revolving Credit Commitment Percentage be
increased as a result of any such failure of any other Revolving Credit Lender
to fund its Revolving Credit Commitment Percentage of a Swingline
Loan.

     

    (ii) The US
Borrower shall pay to the Swingline Lender on demand the amount of such
Swingline Loans to the extent amounts received from the Revolving Credit Lenders
are not sufficient to repay in full the outstanding Swingline Loans requested or
required to be refunded.  In addition, the US Borrower hereby
authorizes the Administrative Agent to charge any account maintained by the US
Borrower with the Swingline Lender or any Affiliate thereof (up to the amount
available therein) in order to immediately pay the Swingline Lender the amount
of such Swingline Loans to the extent amounts received from the Revolving Credit
Lenders are not sufficient to repay in full the outstanding Swingline Loans
requested or required to be refunded.  If any portion of any such
amount paid to the Swingline Lender shall be recovered by or on behalf of the US
Borrower from the Swingline Lender in bankruptcy or otherwise, the loss of the
amount so recovered shall be ratably shared among all the Revolving Credit
Lenders in accordance with their respective Revolving Credit Commitment
Percentages.

     

    (iii) Each
Revolving Credit Lender acknowledges and agrees that its obligation to refund
Swingline Loans in accordance with the terms of this Section is absolute and
unconditional and shall not be affected by any circumstance whatsoever,
including, without limitation, non-satisfaction of the conditions set forth in
Article
VI.  Further, each Revolving Credit Lender acknowledges and
agrees that if prior to the refunding of any outstanding Swingline Loans
pursuant to this Section, a Bankruptcy Event of Default shall have occurred,
each Revolving Credit Lender will, on the date the applicable Revolving Credit
Loan would have been made, purchase an undivided participating interest in the
Swingline Loan to be refunded in an amount equal to its Revolving Credit
Commitment Percentage of the aggregate amount of such Swingline
Loan.  Each Revolving Credit Lender will immediately transfer to the
Swingline Lender, in immediately available funds, the amount of its
participation and upon receipt thereof the Swingline Lender will deliver to such
Revolving Credit Lender a certificate evidencing such participation dated the
date of receipt of such funds and for such amount.  Whenever, at any
time after the Swingline Lender has received from any Revolving Credit Lender
such Revolving Credit Lender’s participating interest in a Swingline Loan, the
Swingline Lender receives any payment on account thereof, the Swingline Lender
will distribute to such Revolving Credit Lender its participating interest in
such amount (appropriately adjusted, in the case of interest payments, to
reflect the period of time during which such Revolving Credit Lender’s
participating interest was outstanding and funded).

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    (iv) In the
event that any Revolving Credit Lender fails to make payment to the Swingline
Lender of any amount due under this Section, the Administrative Agent, on behalf
of the Swingline Lender, shall be entitled to receive, retain and apply against
such obligation the principal and interest otherwise payable to such Revolving
Credit Lender hereunder until the Swingline Lender receives such payment from
such Revolving Credit Lender or such obligation is otherwise fully
satisfied.  In addition to the foregoing, if for any reason any
Revolving Credit Lender fails to make payment to the Swingline Lender of any
amount due under this Section, such Revolving Credit Lender shall be deemed, at
the option of the Administrative Agent, to have unconditionally and irrevocably
purchased from the Swingline Lender, without recourse or warranty, an undivided
interest and participation in the applicable Swingline Loan, and such interest
and participation may be recovered from such Lender together with interest
thereon at the Federal Funds Rate for each day during the period commencing on
the date of demand and ending on the date such amount is received.

     

    SECTION
2.4 Procedure for Advances of
Revolving Credit Loans, Canadian Dollar Loans and Swingline
Loans

     

     

    (a) Requests for
Borrowing.  The US Borrower, on behalf of itself and the
Canadian Borrower, shall give the Administrative Agent irrevocable prior written
notice substantially in the form attached hereto as Exhibit B
(a “Notice of
Borrowing”) not later than (i) 12:00 noon on the same Business Day as
each Base Rate Loan and each Swingline Loan, (ii) 12:00 noon at least three (3)
Business Days before each LIBOR Rate Loan, and (iii) 12:00 noon at least one (1)
Business Day before each Canadian Base Rate Loan, of its intention to borrow,
specifying:

     

    (A) if the
applicable Borrower is the US Borrower or the Canadian Borrower;

     

    (B) the date
of such borrowing, which shall be a Business Day;

     

    (C) whether
such Loan is to be a Revolving Credit Loan, Swingline Loan or Canadian Dollar
Loan;

     

    (D) if such
Loan is a Revolving Credit Loan, whether such Revolving Credit Loan shall be a
LIBOR Rate Loan or a Base Rate Loan;

     

    (E) if such
Loan is a LIBOR Rate Loan, the duration of the Interest Period applicable
thereto;

     

    (F) the
amount of such borrowing, which shall be, (1) with respect to Base Rate Loans
(other than Swingline Loans) in an aggregate principal amount of $500,000 or a
whole multiple of $100,000 in excess thereof, (2) with respect to LIBOR Rate
Loans in an aggregate principal amount of $1,000,000 or a whole multiple of
$1,000,000 in excess thereof, (3) with respect to Swingline Loans in an
aggregate principal amount of $100,000 or a whole multiple of $100,000 in excess
thereof and (4) with respect to Canadian Base Rate Loans in an aggregate
principal amount of C$500,000 or a whole multiple of C$100,000 in excess
thereof.

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    A Notice
of Borrowing received after the times set forth above shall be deemed received
on the next Business Day.  The Administrative Agent shall promptly
notify the Revolving Credit Lenders of each Notice of Borrowing.

     

    (b) Disbursement of Revolving
Credit Loans, Canadian Dollar Loans and Swingline Loans.

     

    (i) Not later
than 1:00 p.m. on the proposed borrowing date for any Revolving Credit Loan,
each Revolving Credit Lender will make available to the Administrative Agent,
for the account of the US Borrower, at the office of the Administrative Agent in
Dollars in funds immediately available to the Administrative Agent, such
Lender’s Revolving Credit Commitment Percentage of the Revolving Credit Loans to
be made on such borrowing date.

     

    (ii) Not later
than 12:00 noon on the proposed borrowing date for any Canadian Base Rate Loan,
the Canadian Dollar Lender will make available to the Administrative Agent, for
the account of the Canadian Borrower, at the office of the Canadian Dollar
Lender in Canadian Dollars in funds immediately available to the Administrative
Agent, the Canadian Base Rate Loan to be made on such borrowing
date.

     

    (iii) Not later
than 1:00 p.m. on the proposed borrowing date for any Swingline Loan, as
applicable, the Swingline Lender will make available to the Administrative
Agent, for the account of the US Borrower, at the office of the Administrative
Agent in Dollars in funds immediately available to the Administrative Agent, the
Swingline Loans to be made on such borrowing date.

     

    (iv) The
Borrowers hereby irrevocably authorize the Administrative Agent to disburse the
proceeds of each borrowing requested pursuant to this Section in immediately
available funds by crediting or wiring such proceeds to the deposit account of
the applicable Borrower identified in the most recent notice substantially in
the form of Exhibit C
hereto (a “Notice of
Account Designation”) delivered by the US Borrower, on behalf of itself
and the Canadian Borrower, to the Administrative Agent or as may be otherwise
agreed upon by the US Borrower, on behalf of itself and the Canadian Borrower,
and the Administrative Agent from time to time.  Subject to Section 5.7 hereof,
the Administrative Agent shall not be obligated to disburse any amount with
respect to any Revolving Credit Loan, Canadian Dollar Loan or Swingline Loan
requested pursuant to this Section to the extent that such amount has not been
made available by the applicable Lenders to the Administrative
Agent.

     

    (v) Revolving
Credit Loans to be made for the purpose of (A) refunding Swingline Loans shall
be made by the Revolving Credit Lenders as provided in Section 2.3(b) and
(B) refunding Canadian Dollar Loans shall be made by the Revolving Credit
Lenders as provided in Section
2.2(b).

     

    SECTION
2.5 Repayment of
Loans

     

    (a) Repayment on Revolving
Credit Maturity Date or Swingline Termination Date.  The
Borrowers agree to repay the outstanding principal amount of (i) all Revolving
Credit Loans in full in Dollars on the Revolving Credit Maturity Date, (ii) all
Canadian Dollar Loans in full in Canadian Dollars on the Revolving Credit
Maturity Date, and (iii) all Swingline Loans in accordance with Section 2.3(b) or, if
earlier, on the Swingline Termination Date, together, in each case, with all
accrued but unpaid interest thereon.

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

     

    (b) Mandatory Repayment of
Revolving Credit Loans.

     

    (i) Aggregate
Commitment.  If at any time (as determined by the
Administrative Agent under Section 2.5(b)(v)),
based upon the Dollar Amount of all outstanding Revolving Credit Loans, Canadian
Dollar Loans, Swingline Loans and L/C Obligations, (A) solely because of
currency fluctuation, the outstanding principal amount of all Revolving Credit
Loans plus the
sum of all outstanding Canadian Dollar Loans, Swingline Loans and L/C
Obligations exceeds one hundred and five percent (105%) of the Revolving Credit
Commitment or (B) for any other reason, the outstanding principal amount of all
Revolving Credit Loans plus the sum of all
outstanding Canadian Dollar Loans, Swingline Loans and L/C Obligations exceeds
the Revolving Credit Commitment, then, in each such case, the Borrowers shall
(1) first, if
(and to the extent) necessary to eliminate such excess, immediately repay
outstanding Swingline Loans (and/or reduce any pending request for a borrowing
of such Loans submitted in respect of such Loans on such day) by the Dollar
Amount of such excess, (2) second, if (and to
the extent) necessary to eliminate such excess, immediately repay outstanding
Revolving Credit Loans which are Base Rate Loans (and/or reduce any pending
requests for a borrowing or continuation or conversion of such Loans submitted
in respect of such Loans on such day) by the Dollar Amount of such excess, (3)
third, if (and
to the extent) necessary to eliminate such excess, immediately repay outstanding
Revolving Credit Loans which are LIBOR Rate Loans (and/or reduce any pending
requests for a borrowing or continuation or conversion of such Loans submitted
in respect of such Loans on such day) by the Dollar Amount of such excess, (4)
fourth, if (and
to the extent) necessary to eliminate such excess, immediately repay outstanding
Canadian Dollar Loans (and/or reduce any pending requests for a borrowing or
continuation or conversion of such Loans submitted in respect of such Loans on
such day) by the Dollar Amount of such excess, and (4) fifth, with respect
to any Letters of Credit then outstanding, make a payment of cash collateral
into a cash collateral account opened by the Administrative Agent for the
benefit of the Revolving Credit Lenders in an amount equal to the aggregate then
undrawn and unexpired amount of such Letters of Credit (such cash collateral to
be applied in accordance with Section
13.2(b)).

     

    (ii) Canadian Dollar
Commitment.  If at any time (as determined by the
Administrative Agent under Section 2.5(b)(v)),
based upon the Dollar Amount of all outstanding Revolving Credit Loans, Canadian
Dollar Loans, Swingline Loans and L/C Obligations, (A) solely because of
currency fluctuation, the outstanding principal amount of all Canadian Dollar
Loans exceeds one hundred five percent (105%) of the Canadian Dollar Commitment
or (B) for any other reason, the outstanding principal amount of all Canadian
Dollar Loans exceeds the Canadian Dollar Commitment, then, in each such case,
such excess shall be immediately repaid, in Canadian Dollars, by the Canadian
Borrower to the Administrative Agent for the account of the Canadian Dollar
Lender.

     

    (iii) Swingline
Commitment.  If at any time (as determined by the
Administrative Agent under Section 2.5(b)(v)),
based upon the Dollar Amount of all outstanding Revolving Credit Loans, Canadian
Dollar Loans, Swingline Loans and L/C Obligations, and for any reason, the
outstanding principal amount of all Swingline Loans exceeds the Swingline
Commitment, then, in each such case, such excess shall be immediately repaid, in
Dollars, by the US Borrower to the Administrative Agent for the account of the
Swingline Lender.

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    (iv) Excess L/C
Obligations.  If at any time (as determined by the
Administrative Agent under Section 2.5(b)(v)),
based upon the Dollar Amount of all outstanding Revolving Credit Loans, Canadian
Dollar Loans, Swingline Loans and L/C Obligations, and for any reason, the
outstanding amount of all L/C Obligations exceeds the L/C Commitment, then, in
each such case, the US Borrower shall make a payment of cash collateral into a
cash collateral account opened by the Administrative Agent, for the benefit of
itself and the Revolving Credit Lenders, in an amount equal to the aggregate
then undrawn and unexpired amount of such Letters of Credit (such cash
collateral to be applied in accordance with Section
13.2(b)).

     

    (v) Compliance and
Payments.  The Borrowers’ compliance with this Section 2.5(b) shall
be tested from time to time by the Administrative Agent at its sole discretion,
but in any event shall be tested on the date on which (A) the US Borrower
requests that the applicable Revolving Credit Lenders make a Revolving Credit
Loan, (B) the US Borrower, on behalf of the Canadian Borrower, requests that the
Canadian Dollar Lender make a Canadian Dollar Loan, (C) the US Borrower requests
that the Swingline Lender make a Swingline Loan or (D) the US Borrower requests
that the Issuing Lender issue a Letter of Credit.  Each such repayment
pursuant to this Section 2.5(b) shall
be accompanied by any amount required to be paid pursuant to Section
5.9.

     

    (c) Optional
Repayments.  The Borrowers may at any time and from time to
time repay the Revolving Credit Loans, Canadian Dollar Loans or Swingline Loans,
in whole or in part, (i) upon at least three (3) Business Days’ irrevocable
notice to the Administrative Agent with respect to LIBOR Rate Loans and
(ii) upon irrevocable notice to the Administrative Agent before 12:00 noon
on the same Business Day with respect to Base Rate Loans, Swingline Loans and
Canadian Dollar Loans, substantially in the form attached hereto as Exhibit D
(a “Notice of
Repayment”), specifying (A) the date of repayment, (B) the amount of
repayment, (C) whether the repayment is of Revolving Credit Loans, Canadian
Dollar Loans, Swingline Loans or a combination thereof, and, if of a combination
thereof, the amount allocable to each and (D) with respect to Revolving Credit
Loans, whether the repayment is of LIBOR Rate Loans, Base Rate Loans, or a
combination thereof, and, if of a combination thereof, the amount allocable to
each.  Upon receipt of such notice, the Administrative Agent shall
promptly notify each Revolving Credit Lender.  If any such notice is
given, the amount specified in such notice shall be due and payable on the date
set forth in such notice.  Partial repayments shall be in an aggregate
amount of (i) $500,000 or a whole multiple of $100,000 in excess thereof with
respect to Base Rate Loans (other than Swingline Loans), (ii) $1,000,000 or a
whole multiple of $1,000,000 in excess thereof with respect to LIBOR Rate Loans,
(iii)  C$500,000 or a whole multiple of C$100,000 in excess thereof
with respect to Canadian Dollar Loans and (iv) $100,000 or a whole multiple of
$100,000 in excess thereof with respect to Swingline Loans.  A Notice
of Repayment received after applicable time set forth above shall be deemed
received on the next Business Day.  Each such repayment shall be
accompanied by any amount required to be paid pursuant to Section
5.9.

     

    (d) Excess
Proceeds.  In the event proceeds remain after the prepayments
of the Term Loan Facility pursuant to Section 4.3, the
amount of such excess proceeds shall, at the option of the US Borrower, either
(i) be retained by the US Borrower or its Subsidiaries or (ii) be used on the
date of the required prepayment under Section 4.3 to prepay
the outstanding principal amount of the Revolving Credit Loans, without a
corresponding reduction of the Revolving Credit Commitment.

     

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

     

    (e) Limitation on Repayment of
LIBOR Rate Loans.  The Borrowers may not repay any LIBOR Rate
Loan on any day other than on the last day of the Interest Period applicable
thereto unless such repayment is accompanied by any amount required to be paid
pursuant to Section
5.9 hereof.

     

    (f) Payment of
Interest.  Each repayment pursuant to this Section shall be
accompanied by accrued interest on the amount repaid.

     

    (g) Hedging
Agreements.  No repayment pursuant to this Section shall affect
any Borrower’s obligations under any Hedging Agreement.

     

    SECTION
2.6 Permanent Reduction of the
Revolving Credit Commitment

     

     

    (a) Voluntary
Reduction.  The Borrowers shall have the right at any time and
from time to time, upon at least five (5) Business Days prior written notice to
the Administrative Agent, to permanently reduce, without premium or penalty, (i)
the entire Revolving Credit Commitment at any time or (ii) portions of the
Revolving Credit Commitment, from time to time, in an aggregate principal amount
not less than $5,000,000 or any whole multiple of $1,000,000 in excess
thereof.  Any reduction of the Revolving Credit Commitment shall be
applied to the Revolving Credit Commitment of each Revolving Credit Lender
according to its Revolving Credit Commitment Percentage.  All fees
accrued until the effective date of any termination of the Revolving Credit
Commitment shall be paid on the effective date of such termination.

     

    (b) Corresponding
Payment.  Each permanent reduction permitted pursuant to this
Section shall be accompanied by a payment of principal sufficient to reduce (i)
the aggregate Dollar Amount of all outstanding Revolving Credit Loans, Canadian
Dollar Loans, Swingline Loans and L/C Obligations, as applicable, after such
reduction to the Revolving Credit Commitment as so reduced and (ii) to the
extent that the Canadian Dollar Commitment is reduced, the aggregate Dollar
Amount of all outstanding Canadian Dollar Loans to the Canadian Dollar
Commitment as so reduced.  If the Revolving Credit Commitment as so
reduced is less than the aggregate amount of all outstanding Letters of Credit,
the Borrowers shall be required to deposit cash collateral in a cash collateral
account opened by the Administrative Agent in an amount equal to the aggregate
then undrawn and unexpired amount of such Letters of Credit.  Such
cash collateral shall be applied in accordance with Section
13.2(b).  Any reduction of the Revolving Credit Commitment to
zero shall be accompanied by payment of all outstanding Revolving Credit Loans,
Swingline Loans and Canadian Dollar Loans (and furnishing of cash collateral
satisfactory to the Administrative Agent for all L/C Obligations) and shall
result in the termination of the Revolving Credit Commitment, the Swingline
Commitment, the Canadian Dollar Commitment and the Revolving Credit
Facility.  Such cash collateral shall be applied in accordance with
Section
13.2(b).  If the reduction of the Revolving Credit Commitment
requires the repayment of any LIBOR Rate Loan, such repayment shall be
accompanied by any amount required to be paid pursuant to Section 5.9
hereof.

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

     

    SECTION
2.7 Termination of Revolving
Credit Facility

     

    The
Revolving Credit Facility shall terminate on the Revolving Credit Maturity
Date.

     

    SECTION
2.8 Nature of
Obligations

     

    The
obligations of the US Borrower hereunder and under the other Loan Documents
shall be joint and several with the Obligations of the Canadian
Borrower.  The obligations of the Canadian Borrower hereunder and
under the other Loan Documents shall not be joint and several.

     

    SECTION
2.9 Optional Increase of
Revolving Credit Commitment

     

     

    (a) Subject
to the conditions set forth below, at any time prior to the Revolving Credit
Maturity Date, the US Borrower shall have the right from time to time to
increase the Revolving Credit Commitment in an additional aggregate principal
amount of up to $75,000,000 less the aggregate
principal amount of all prior increases to the Revolving Credit Commitment made
pursuant to this Section.  Pursuant to an Increase Notification, the
US Borrower may request that additional Revolving Credit Loans be made on the
Increase Effective Date.

     

    (b) Increases
in the Revolving Credit Commitment shall be obtained from existing Revolving
Credit Lenders or from other banks, financial institutions or investment funds
that qualify as Eligible Assignees, in each case in accordance with this Section
2.9.  Participation in any increase in the Revolving Credit
Commitment shall be offered first to each of the existing Revolving Credit
Lenders (who shall promptly, but in no event later than ten (10) days after such
offer, make a determination as to whether to participate in such increase);
provided that
no such Revolving Credit Lender shall have any obligation to provide any portion
of such increase.  If the amount of the increase requested by the US
Borrower shall exceed the commitments which the existing Revolving Credit
Lenders are willing to provide with respect to such increase, then the US
Borrower may invite other banks, financial institutions and investment funds
which meet the requirements of an Eligible Assignee to join this Agreement as
Revolving Credit Lenders for the portion of such increase not committed to by
existing Revolving Credit Lenders (each such other bank, financial institution
or investment fund, a “New Revolving Credit
Lender” and, collectively with the existing Revolving Credit Lenders
providing increased Revolving Credit Commitments, the “Increasing Revolving Credit
Lenders”). The Administrative Agent is authorized to enter into, on
behalf of the Lenders, any amendment to this Agreement or any other Loan
Document as may be necessary to incorporate the terms of any increase in the
Revolving Credit Commitment herein or therein; provided that such
amendment shall not modify this Agreement or any other Loan Document in any
manner materially adverse to any Lender and shall otherwise be in accordance
with Section 15.2
hereof.

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

     

    (c) The
following terms and conditions shall apply to each increase in the Revolving
Credit Commitment: (i) such increase in the Revolving Credit Commitment pursuant
to this Section
2.9 (and any Extensions of Credit made thereunder) shall constitute
Obligations of the US Borrower and shall be guaranteed with the other Extensions
of Credit on a pari passu basis; (ii) any
New Revolving Credit Lender providing such increase shall be entitled to the
same voting rights as the existing Revolving Credit Lenders under the Revolving
Credit Facility and any Extensions of Credit made in connection with such
increase shall receive proceeds of prepayments on the same basis as the other
Revolving Credit Loans made hereunder; (iii) the US Borrower shall, upon the
request of any Increasing Revolving Credit Lender, execute such Revolving Credit
Notes as are necessary to reflect such Increasing Revolving Credit Lender’s
Revolving Credit Commitment (as increased); (iv) the Administrative Agent and
the Revolving Credit Lenders shall have received from the US Borrower updated
financial projections and an Officer’s Compliance Certificate, in each case in
form and substance reasonably satisfactory to the Administrative Agent,
demonstrating that, based on information contained in the most recent quarterly
or annual financial statements provided to the Administrative Agent and the
Lenders pursuant to Section 8.1(a) or
(b) as adjusted
to give effect to any such increase in the Revolving Credit Commitment and any
Extensions of Credit made or to be made in connection therewith, the US Borrower
and its Subsidiaries will be in pro forma compliance
with the financial covenants set forth in Article X; (v) no
Default or Event of Default shall have occurred and be continuing as of the
applicable Increase Effective Date or after giving effect to such increase in
the Revolving Credit Commitment pursuant to this Section 2.9 or any
Extensions of Credit made in connection therewith; (vi) the representations and
warranties made by the Borrowers and contained in Article VII shall be
true and correct on and as of the Increase Effective Date with the same effect
as if made on and as of such date (other than those representations and
warranties that by their terms speak as of a particular date, which
representations and warranties shall be true and correct as of such particular
date); (vii) the amount of such increase in the Revolving Credit Commitment
shall not be less than a minimum principal amount of $5,000,000 or a whole
multiple of $1,000,000 in excess thereof, or if less, the maximum amount
permitted pursuant to clause (a) above; (viii) the Administrative Agent shall
have received a resolution duly adopted by the board of directors (or equivalent
governing body) of each Credit Party authorizing such increase in the Revolving
Credit Commitments; (ix) the US Borrower and each Increasing Revolving Credit
Lender shall execute and deliver to the Administrative Agent, for its acceptance
and recording in the Register, a written agreement acknowledged by the
Administrative Agent and each Subsidiary Guarantor, in form and substance
satisfactory to the Administrative Agent (a “Lender Addition and
Acknowledgement Agreement”); (x) the Administrative Agent shall have
received any documents or information, including any joinder agreements, in
connection with such increase in the Revolving Credit Commitment as it may
request in its reasonable discretion; and (xi) the outstanding Revolving Credit
Loans and Revolving Credit Commitment Percentages of L/C Obligations and
Swingline Loans will be reallocated by the Administrative Agent on the
applicable Increase Effective Date among the Revolving Credit Lenders in
accordance with their revised Revolving Credit Commitment Percentages (and the
Revolving Credit Lenders agree to make all payments and adjustments necessary to
effect such reallocation and the US Borrower shall pay any and all costs
required pursuant to Section 5.9 in
connection with such reallocation as if such reallocation were a
repayment).

     

    (d) Upon the
execution, delivery, acceptance and recording of the applicable Lender Addition
and Acknowledgment Agreement, from and after the applicable Increase Effective
Date, each Increasing Revolving Credit Lender shall have a Revolving Credit
Commitment as set forth in the Register and all the rights and obligations of a
Lender with a Revolving Credit Commitment hereunder.

     

    (e) The
Administrative Agent shall maintain a copy of each Lender Addition and
Acknowledgment Agreement delivered to it in accordance with Section
15.11(c).

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

     

    (f) Within
five (5) Business Days after receipt of notice, the US Borrower shall execute
and deliver to the Administrative Agent, in exchange for any surrendered
Revolving Credit Note or Revolving Credit Notes of any existing Revolving Credit
Lender or with respect to any New Revolving Credit Lender, a new Revolving
Credit Note or Revolving Credit Notes to the order of the applicable Revolving
Credit Lenders in amounts equal to the Revolving Credit Commitment of such
Revolving Credit Lenders as set forth in the Register.  Such new
Revolving Credit Note or Revolving Credit Notes shall be in an aggregate
principal amount equal to the aggregate principal amount of such Revolving
Credit Commitments, shall be dated as of the Increase Effective Date and shall
otherwise be in substantially the form of the existing Revolving Credit
Notes.  Each surrendered Revolving Credit Note and/or Revolving Credit
Notes shall be canceled and returned to the US Borrower.

     

    (g) All
Revolving Credit Loans made on account of any increase in the Revolving Credit
Commitment pursuant to this Section 2.9 shall
bear interest at the rate applicable to the Revolving Credit Loans immediately
prior to giving effect to such increase in the Revolving Credit Commitment
pursuant to this Section
2.9.

     

    ARTICLE
III                                

    LETTER OF CREDIT
FACILITY

    SECTION
3.1 L/C
Commitment

     

    Subject
to the terms and conditions hereof, the Issuing Lender, in reliance on the
agreements of the other Revolving Credit Lenders set forth in Section 3.4(a),
agrees to issue Letters of Credit for the account of the US Borrower on any
Business Day from the Closing Date to but not including the fifth (5th)
Business Day prior to the Revolving Credit Maturity Date in such form as may be
approved from time to time by the Issuing Lender; provided, that the
Issuing Lender shall have no obligation to issue any Letter of Credit if, after
giving effect to such issuance, based upon the Dollar Amount of all outstanding
Loans and L/C Obligations, the aggregate amount of all outstanding L/C
Obligations would exceed the lesser of (a) the L/C Commitment or (b) the
Revolving Credit Commitment less the aggregate
principal amount of all outstanding Loans.  Each Letter of Credit
(other than the Existing Letters of Credit) shall (i) be denominated in Dollars
in a minimum amount of $30,000 or a lesser amount acceptable to the Issuing
Lender, (ii) be a standby letter of credit or a trade letter of credit issued to
support obligations of the US Borrower or any of its Subsidiaries, contingent or
otherwise, incurred in the ordinary course of business, (iii) expire on a date
no later than the earlier of (A) five (5) Business Days prior to the Revolving
Credit Maturity Date and (B) one year after its date of issuance, and (iv) be
subject to the Uniform Customs and/or ISP98, as set forth in the Letter of
Credit Application or as determined by the Issuing Lender and, to the extent not
inconsistent therewith, the laws of the State of North Carolina.  As
of the Closing Date, each of the Existing Letters of Credit shall constitute,
for all purposes of this Agreement and the other Loan Documents, a Letter of
Credit issued and outstanding hereunder.  The Issuing Lender shall not
at any time be obligated to issue any Letter of Credit hereunder if such
issuance would conflict with, or cause the Issuing Lender or any L/C Participant
to exceed any limits imposed by, any Applicable Law.  References
herein to “issue” and derivations thereof with respect to Letters of Credit
shall also include extensions or modifications of any existing Letters of
Credit, unless the context otherwise requires.

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

     

    SECTION
3.2 Procedure for Issuance of
Letters of Credit

     

    The US
Borrower may from time to time request that the Issuing Lender issue a Letter of
Credit by delivering to the Issuing Lender at the Administrative Agent’s Office
a Letter of Credit Application therefor, completed to the satisfaction of the
Issuing Lender, and such other certificates, documents and other papers and
information as the Issuing Lender may request.  Upon receipt of any
Letter of Credit Application, the Issuing Lender shall process such Letter of
Credit Application and the certificates, documents and other papers and
information delivered to it in connection therewith in accordance with its
customary procedures and shall, subject to Section 3.1 and Article VI, promptly
issue the Letter of Credit requested thereby (but in no event shall the Issuing
Lender be required to issue any Letter of Credit earlier than three (3) Business
Days after its receipt of the Letter of Credit Application therefor and all such
other certificates, documents and other papers and information relating thereto)
by issuing the original of such Letter of Credit to the beneficiary thereof or
as otherwise may be agreed by the Issuing Lender and the US
Borrower.  The Issuing Lender shall promptly furnish to the US
Borrower a copy of such Letter of Credit and promptly notify each Revolving
Credit Lender of the issuance and upon request by any Revolving Credit Lender,
furnish to such Revolving Credit Lender a copy of such Letter of Credit and the
amount of such Revolving Credit Lender’s participation therein.

     

    SECTION
3.3 Commissions and Other
Charges

     

     

    (a) Letter of Credit
Commissions.  The US Borrower shall pay to the Administrative
Agent, for the account of the Issuing Lender and the L/C Participants, a letter
of credit commission with respect to each Letter of Credit in an amount equal to
the face amount of such Letter of Credit multiplied by the
Applicable Margin with respect to Revolving Credit Loans that are LIBOR Rate
Loans (determined on a per annum basis).  Such commission shall be
payable quarterly in arrears on the last Business Day of each calendar quarter,
on the Revolving Credit Maturity Date and thereafter on demand of the
Administrative Agent.  The Administrative Agent shall, promptly
following its receipt thereof, distribute to the Issuing Lender and the L/C
Participants all commissions received pursuant to this Section in accordance
with their respective Revolving Credit Commitment Percentages.

     

    (b) Issuance
Fee.  In addition to the foregoing commission, the US Borrower
shall pay to the Administrative Agent, for the account of the Issuing Lender, an
issuance fee with respect to each Letter of Credit in an amount equal to the
face amount of such Letter of Credit multiplied by one eighth of one percent
(0.125%) per annum.  Such issuance fee shall be payable quarterly in
arrears on the last Business Day of each calendar quarter commencing with the
first such date to occur after the issuance of such Letter of Credit, on the
Revolving Credit Maturity Date and thereafter on demand of the Issuing Lender
(through the Administrative Agent).

     

    (c) Other
Costs.  In addition to the foregoing fees and commissions, the
US Borrower shall pay or reimburse the Issuing Lender for such normal and
customary costs and expenses as are incurred or charged by the Issuing Lender in
issuing, effecting payment under, amending or otherwise administering any Letter
of Credit.

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

     

    SECTION
3.4 L/C
Participations

     

     

    (a) The
Issuing Lender irrevocably agrees to grant and hereby grants to each L/C
Participant, and, to induce the Issuing Lender to issue Letters of Credit
hereunder, each L/C Participant irrevocably agrees to accept and purchase and
hereby accepts and purchases from the Issuing Lender, on the terms and
conditions hereinafter stated, for such L/C Participant’s own account and risk
an undivided interest equal to such L/C Participant’s Revolving Credit
Commitment Percentage in the Issuing Lender’s obligations and rights under and
in respect of each Letter of Credit issued hereunder and the amount of each
draft paid by the Issuing Lender thereunder.  Each L/C Participant
unconditionally and irrevocably agrees with the Issuing Lender that, if a draft
is paid under any Letter of Credit for which the Issuing Lender is not
reimbursed in full by the US Borrower through a Revolving Credit Loan or
otherwise in accordance with the terms of this Agreement, such L/C Participant
shall pay to the Issuing Lender upon demand at the Issuing Lender’s address for
notices specified herein an amount equal to such L/C Participant’s Revolving
Credit Commitment Percentage of the amount of such draft, or any part thereof,
which is not so reimbursed.

     

    (b) Upon
becoming aware of any amount required to be paid by any L/C Participant to the
Issuing Lender pursuant to Section 3.4(a)
in respect of any unreimbursed portion of any payment made by the Issuing Lender
under any Letter of Credit, the Issuing Lender shall notify each L/C Participant
of the amount and due date of such required payment and such L/C Participant
shall pay to the Issuing Lender the amount specified on the applicable due
date.  If any such amount is paid to the Issuing Lender after the date
such payment is due, such L/C Participant shall pay to the Issuing Lender on
demand, in addition to such amount, the product of (i) such amount, times (ii) the daily
average Federal Funds Rate as determined by the Administrative Agent during the
period from and including the date such payment is due to the date on which such
payment is immediately available to the Issuing Lender, times (iii) a
fraction the numerator of which is the number of days that elapse during such
period and the denominator of which is 360.  A certificate of the
Issuing Lender with respect to any amounts owing under this Section shall be
conclusive in the absence of manifest error.  With respect to payment
to the Issuing Lender of the unreimbursed amounts described in this Section, if
the L/C Participants receive notice that any such payment is due (A) prior to
1:00 p.m. on any Business Day, such payment shall be due that Business Day, and
(B) after 1:00 p.m. on any Business Day, such payment shall be due on the
following Business Day.

     

    (c) Whenever,
at any time after the Issuing Lender has made payment under any Letter of Credit
and has received from any L/C Participant its Revolving Credit Commitment
Percentage of such payment in accordance with this Section, the Issuing Lender
receives any payment related to such Letter of Credit (whether directly from the
US Borrower or otherwise), or any payment of interest on account thereof, the
Issuing Lender will distribute to such L/C Participant its pro rata share thereof;
provided, that
in the event that any such payment received by the Issuing Lender shall be
required to be returned by the Issuing Lender, such L/C Participant shall return
to the Issuing Lender the portion thereof previously distributed by the Issuing
Lender to it.

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

     

    SECTION
3.5 Reimbursement Obligation of
the US Borrower

     

    In the
event of any drawing under any Letter of Credit, the US Borrower agrees to
reimburse (either with the proceeds of a Revolving Credit Loan as provided for
in this Section or with funds from other sources), in same day funds, the
Issuing Lender on each date on which the Issuing Lender notifies the US Borrower
of the date and amount of a draft paid under any Letter of Credit for the amount
of (a) such draft so paid and (b) any amounts referred to in Section 3.3(c)
incurred by the Issuing Lender in connection with such
payment.  Unless the US Borrower shall immediately notify the Issuing
Lender that the US Borrower intends to reimburse the Issuing Lender for such
drawing from other sources or funds, the US Borrower shall be deemed to have
timely given a Notice of Borrowing to the Administrative Agent requesting that
the Revolving Credit Lenders make a Revolving Credit Loan bearing interest at
the Base Rate on such date in the amount of (i) such draft so paid and (ii) any
amounts referred to in Section 3.3(c)
incurred by the Issuing Lender in connection with such payment, and the
Revolving Credit Lenders shall make a Revolving Credit Loan bearing interest at
the Base Rate in such amount, the proceeds of which shall be applied to
reimburse the Issuing Lender for the amount of the related drawing and costs and
expenses. Each Revolving Credit Lender acknowledges and agrees that its
obligation to fund a Revolving Credit Loan in accordance with this Section to
reimburse the Issuing Lender for any draft paid under a Letter of Credit is
absolute and unconditional and shall not be affected by any circumstance
whatsoever, including, without limitation, non-satisfaction of the conditions
set forth in Section
2.4(a) or Article
VI.  If the US Borrower has elected to pay the amount of such
drawing with funds from other sources and shall fail to reimburse the Issuing
Lender as provided above, the unreimbursed amount of such drawing shall bear
interest at the rate which would be payable on any outstanding Base Rate Loans
which were then overdue from the date such amounts become payable (whether at
stated maturity, by acceleration or otherwise) until payment in
full.

     

    SECTION
3.6 Obligations
Absolute

     

    The US
Borrower’s obligations under this Article III
(including, without limitation, the Reimbursement Obligation) shall be absolute
and unconditional under any and all circumstances and irrespective of any
set-off, counterclaim or defense to payment which the US Borrower may have or
have had against the Issuing Lender or any beneficiary of a Letter of Credit or
any other Person.  The US Borrower also agrees that the Issuing Lender
and the L/C Participants shall not be responsible for, and the US Borrower’s
Reimbursement Obligation under Section 3.5 shall not
be affected by, among other things, the validity or genuineness of documents or
of any endorsements thereon, even though such documents shall in fact prove to
be invalid, fraudulent or forged, or any dispute between or among the US
Borrower and any beneficiary of any Letter of Credit or any other party to which
such Letter of Credit may be transferred or any claims whatsoever of the US
Borrower against any beneficiary of such Letter of Credit or any such
transferee.  The Issuing Lender shall not be liable for any error,
omission, interruption or delay in transmission, dispatch or delivery of any
message or advice, however transmitted, in connection with any Letter of Credit,
except for errors or omissions caused by the Issuing Lender’s gross negligence
or willful misconduct, as determined by a court of competent jurisdiction by
final nonappealable judgment.  The US Borrower agrees that any action
taken or omitted by the Issuing Lender under or in connection with any Letter of
Credit or the related drafts or documents, if done in the absence of gross
negligence or willful misconduct, shall be binding on the US Borrower and shall
not result in any liability of the Issuing Lender or any L/C Participant to the
US Borrower.  The responsibility of the Issuing Lender to the US
Borrower in connection with any draft presented for payment under any Letter of
Credit shall, in addition to any payment obligation expressly provided for in
such Letter of Credit, be limited to determining that the documents (including
each draft) delivered under such Letter of Credit in connection with such
presentment are in conformity with such Letter of Credit.

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

     

    SECTION
3.7 Effect of Letter of Credit
Application

     

    To the
extent that any provision of any Letter of Credit Application related to any
Letter of Credit is inconsistent with the provisions of this Article III, the
provisions of this Article III shall
apply.

     

    ARTICLE
IV                                

    TERM LOAN
FACILITY

    

               SECTION
4.1                                Term
Loan

     

    On the
Second Amendment Effective Date, the Term Loan was made to the US Borrower in an
aggregate principal amount equal to $60,000,000. After giving effect to all
prior repayments of the Term Loan prior to the Closing Date, the aggregate
amount of the Term Loan on the Closing Date is $57,750,000.

     

               SECTION
4.2                                Repayment of Term
Loan

     

    The US
Borrower shall repay the aggregate outstanding principal amount of the Term
Loan, in consecutive quarterly installments on the last Business Day of each of
March, June, September and December commencing on December 31, 2007 as set forth
below, except as the amounts of individual installments may be adjusted pursuant
to Section 4.3:

     

    
      	
              YEAR

            	
              PAYMENT
      DATE

            	
              PRINCIPAL
      INSTALLMENT

            	
              REMAINING
      PRINCIPAL AMOUNT OF TERM LOAN

            
	
              2007

            	
              12/31/2007

            	
              $750,000

            	
              $57,000,000

            
	
              2008

            	
              3/31/2008

            	
              $750,000

            	
              $56,250,000

            
	
              6/30/2008

            	
              $750,000

            	
              $55,500,000

            
	
              9/30/2008

            	
              $750,000

            	
              $54,750,000

            
	
              12/31/2008

            	
              $750,000

            	
              $54,000,000

            
	
              2009

            	
              3/31/2009

            	
              $1,500,000

            	
              $52,500,000

            
	
              6/30/2009

            	
              $1,500,000

            	
              $51,000,000

            
	
              9/30/2009

            	
              $1,500,000

            	
              $49,500,000

            
	
              12/31/2009

            	
              $1,500,000

            	
              $48,000,000

            
	
              2010

            	
              3/31/2010

            	
              $12,000,000

            	
              $36,000,000

            
	
              6/30/2010

            	
              $12,000,000

            	
              $24,000,000

            
	
              9/30/2010

            	
              $12,000,000

            	
              $12,000,000

            
	
              Term
      Loan Maturity Date

            	
              $12,000,000

            	
              $0

            

    

    

     

    If not
sooner paid, the Term Loan shall be paid in full, together with accrued interest
thereon, on the Term Loan Maturity Date.  Amounts repaid pursuant to
this Section
4.2 may not be reborrowed.

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

     

               SECTION
4.3                                Prepayments of Term
Loan

     

     

    (a) Optional Prepayments of Term
Loans.  The US Borrower shall have the right at any time and
from time to time, without premium or penalty, to prepay the Term Loans in whole
or in part, upon delivery to the Administrative Agent of a Notice of Repayment
not later than 12:00 noon (i) on the same Business Day as such prepayment
with respect to Base Rate Loans and (ii) at least three (3) Business Days
prior to such prepayment with respect to LIBOR Rate Loans, specifying the date
and amount of repayment, whether the repayment is of LIBOR Rate Loans or Base
Rate Loans or a combination thereof, and, if of a combination thereof, the
amount allocable to each.  Each optional prepayment pursuant to this
Section 4.3
shall be in an aggregate principal amount of at least $5,000,000 or any whole
multiple of $1,000,000 in excess thereof and shall be applied to reduce, on a
pro rata basis, the
outstanding scheduled principal installments of the Term Loans with respect to
any such outstanding Term Loans, pro rata on the basis of
the original aggregate funded amount thereof, among the Term
Loans.  Each repayment shall be accompanied by any amount required to
be paid pursuant to Section
5.9.  The Administrative Agent shall promptly notify the Term
Loan Lenders of each such Notice of Repayment.

     

    (b) Mandatory
Prepayments.

     

    (i) Debt
Issuances.  The US Borrower shall make mandatory principal
prepayments of the Loans, in the manner set forth in clause (v) below, in
an amount equal to 100% of the aggregate Net Cash Proceeds from any Debt
Issuance by the US Borrower or any of its Subsidiaries.  Such
prepayments shall be made within three (3) Business Days after receipt of such
Net Cash Proceeds.

     

    (ii) Equity
Issuances.  The US Borrower shall make mandatory principal
prepayments of the Loans, in the manner set forth in clause (v) below, in
an amount equal to one hundred percent (100%) of the aggregate Net Cash Proceeds
from any Equity Issuance by the US Borrower or any of its Subsidiaries (other
than the exercise price on stock options issued as part of employee
compensation); provided, that so
long as no Event of Default has occurred and is continuing, no prepayments shall
be required from the Net Cash Proceeds from Equity Issuances the proceeds of
which are used to finance a Permitted Acquisition.  Such prepayment
shall be made within three (3) Business Days after the date of receipt of such
Net Cash Proceeds.

     

    (iii) Asset
Dispositions.  The US Borrower shall make mandatory principal
prepayments of Loans, in the manner set forth in clause (v) below, in
an amount equal to one hundred percent (100%) of the aggregate Net Cash Proceeds
from any Asset Disposition by the US Borrower or any of its
Subsidiaries.  Such prepayments shall be made within three (3)
Business Days after receipt of such Net Cash Proceeds; provided that, so
long as no Default or Event of Default has occurred and is continuing, no
prepayments shall be required hereunder:

     

    (A) to the
extent that the Net Cash Proceeds from Asset Dispositions by the US Borrower or
any of its Subsidiaries have been committed to be reinvested in similar
replacement assets within one hundred eighty (180) days after receipt thereof
and are thereafter actually reinvested in similar replacement assets within two
hundred seventy (270) days after receipt of such Net Cash Proceeds; provided further that
any portion of such Net Cash Proceeds not reinvested within such two hundred
seventy (270) day period shall be prepaid in accordance with this Section;
or

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

     

    (B) in
connection with Asset Dispositions permitted pursuant to Section
11.5.

     

    (iv) Insurance and Condemnation
Events. The US Borrower shall make mandatory principal prepayment of the
Loans, in the manner set forth in clause (v) below, in
an amount equal to one hundred percent (100%) of the aggregate Net Cash Proceeds
from any Insurance and Condemnation Event by the US Borrower or any of its
Subsidiaries.  Such prepayments shall be made within three (3)
Business Days after receipt of such Net Cash Proceeds; provided that, so
long as no Default or Event of Default has occurred and is continuing, no
prepayments shall be required hereunder:

     

    (A) to the
extent that the Net Cash Proceeds from Insurance and Condemnation Events by the
US Borrower or any of its Subsidiaries have been committed to be reinvested in
similar replacement assets within one hundred eighty (180) days after receipt
thereof (it being understood that the amount of any expenditures committed to be
reinvested in similar replacement assets during the period commencing on the
date of the circumstance giving rise to the applicable Insurance and
Condemnation Event and ending on the date of receipt of the Net Cash Proceeds
from such Insurance and Condemnation Event, but in anticipation of such receipt,
shall be deemed to have been committed for reinvestment within such 180 day
period) and are thereafter actually reinvested in similar replacement assets
within two hundred seventy (270) days after receipt of such Net Cash Proceeds
(it being understood that the amount of any expenditures made to reinvest in
similar replacement assets during the period commencing on the date of the
circumstance giving rise to the applicable Insurance and Condemnation Event and
ending on the date of receipt of the Net Cash Proceeds from such Insurance and
Condemnation Event, but in anticipation of such receipt, shall be deemed to have
been reinvested within such 270 day period); provided further that
any portion of such Net Cash Proceeds not reinvested within such two hundred
seventy (270) day period shall be prepaid in accordance with this Section;
or

     

    (B) in
connection with any Insurance or Condemnation Event to the extent
that:

     

    (1)           the
Net Cash Proceeds from such individual Insurance and Condemnation Event together
with all related Insurance and Condemnation Events (if any) is equal to or less
than $10,000,000; and

    

    (2)           the
Net Cash Proceeds of any Insurance and Condemnation Event together with all
related Insurance and Condemnation Events (if any) when aggregated with all
other Insurance and Condemnation Events for which a prepayment was not required
pursuant to this clause (B) of this Section 4.3(b)(iv) is
equal to or less than $25,000,000 in the aggregate during the period from the
Original Closing Date through and including the later to occur of the Revolving
Credit Maturity Date or the Term Loan Maturity Date.

     

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

    

    For the
purposes of this Section 4.3(b)(iv),
any Net Cash Proceeds reinvested pursuant to and in accordance with clause (A)
shall be excluded for purposes of determining the amounts of Net Cash Proceeds
under clause (B).

     

    (v) Notice; Manner of
Payment.  Upon the occurrence of any event requiring a
prepayment under clauses (i) through
(iv) above, the
US Borrower shall promptly deliver a Notice of Repayment to the Administrative
Agent and, upon receipt of such notice, the Administrative Agent shall promptly
so notify the Lenders.  Each prepayment of the Loans under this
Section shall be applied as follows:  first, to prepay, on
a pro rata basis, the
outstanding scheduled principal installments of the Term Loans with respect to
such outstanding Term Loans and second, to the extent
of any excess, to prepay the outstanding principal of the Revolving Credit Loans
pursuant to Section
2.5(d).

     

    Amounts
prepaid under the Term Loan pursuant to this Section may not be
reborrowed.  Each prepayment shall be accompanied by any amount
required to be paid pursuant to Section
5.9.

     

    ARTICLE
V                                

    GENERAL LOAN
PROVISIONS

    SECTION
5.1 Interest

     

     

    (a) Interest Rate
Options.  Subject to the provisions of this Section, at the
election of the US Borrower, on behalf of itself and the Canadian
Borrower:

     

    (i) Revolving
Credit Loans and the Term Loan shall bear interest at (A) the Base Rate plus the Applicable
Margin or (B) the LIBOR Rate plus the Applicable
Margin (provided that the
LIBOR Rate shall not be available with respect to Revolving Credit Loans until
three (3) Business Days after the Closing Date unless the US Borrower has
delivered to the Administrative Agent a letter in form and substance
satisfactory to the Administrative Agent indemnifying the Revolving Credit
Lenders in the manner set forth in Section 5.9 of this
Agreement);

     

    (ii) Canadian
Dollar Loans shall bear interest at the Canadian Base Rate plus the Applicable
Margin; and

     

    (iii) Swingline
Loans shall bear interest at the LIBOR Market Index Rate plus the Applicable
Margin.

     

    The US
Borrower, on behalf of itself and the Canadian Borrower, shall select the rate
of interest and Interest Period, if any, applicable to any Loan at the time a
Notice of Borrowing is given pursuant to Section 2.4 or at the
time a Notice of Conversion/Continuation is given pursuant to Section
5.2.  Any Revolving Credit Loan or Term Loan or any portion
thereof as to which the US Borrower has not duly specified an interest rate as
provided herein shall be deemed a Base Rate Loan.  Any LIBOR Rate Loan
or any portion thereof as to which the US Borrower has not duly specified an
Interest Period as provided herein shall be deemed a LIBOR Rate Loan with an
Interest Period of one (1) month.

     

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

     

    (b) Interest
Periods.  In connection with each LIBOR Rate Loan, the US
Borrower, on behalf of itself and the Canadian Borrower, by giving notice at the
times described in Section 2.4 or 5.2, as applicable,
shall elect an interest period (each, an “Interest Period”) to
be applicable to such LIBOR Rate Loan, which Interest Period shall be a period
of one (1), two (2), three (3), or six (6) months; provided
that:

     

    (i) the
Interest Period shall commence on the date of advance of or conversion to any
LIBOR Rate Loan and, in the case of immediately successive Interest Periods,
each successive Interest Period shall commence on the date on which the
immediately preceding Interest Period expires;

     

    (ii) if any
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 with respect to a LIBOR Rate Loan 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
immediately preceding Business Day;

     

    (iii) any
Interest Period with respect to a LIBOR Rate Loan that begins on the last
Business Day of a calendar month (or on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest Period)
shall end on the last Business Day of the relevant calendar month at the end of
such Interest Period;

     

    (iv) no
Interest Period shall extend beyond the Revolving Credit Maturity Date or the
Term Loan Maturity Date, as applicable, and the quarterly principal installment
payments pursuant to Section 4.2 without
payment of any amounts pursuant to Section 5.9;
and

     

    (v) there
shall be no more than eight (8) Interest Periods in effect at any
time.

     

    (c) Default
Rate.  Subject to Section 13.3, upon
the occurrence and during the continuance of a Payment Event of Default or a
Bankruptcy Event of Default or, at the discretion of the Administrative Agent or
as directed by the Required Lenders, upon the occurrence and during the
continuance of an Event of Default other than a Payment Event of Default or
Bankruptcy Event of Default, (i) the Borrowers shall no longer have the option
to request LIBOR Rate Loans, Swingline Loans or Letters of Credit, (ii) all
outstanding LIBOR Rate Loans shall bear interest at a rate per annum of two
percent (2%) in excess of the rate then applicable to LIBOR Rate Loans until the
end of the applicable Interest Period and thereafter at a rate equal to two
percent (2%) in excess of the rate then applicable to Base Rate Loans, (iii) all
outstanding Canadian Base Rate Loans shall bear interest at a rate per annum
equal to two percent (2%) in excess of the rate then applicable to Canadian Base
Rate Loans and (iv) all outstanding Base Rate Loans, Swingline Loans and other
Obligations arising hereunder or under any other Loan Document shall bear
interest at a rate per annum equal to two percent (2%) in excess of the rate
then applicable to Base Rate Loans.  Interest shall continue to accrue
on the Obligations after the filing by or against any Borrower of any petition
seeking any relief in bankruptcy or under any act or law pertaining to
insolvency or debtor relief, whether state, federal or foreign.  The
interest accrued pursuant to this Section 5.1(c) shall
be payable by the applicable Borrower on demand of the Administrative
Agent.

     

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

     

    (d) Interest Payment and
Computation.

     

    (i) Interest
on each Base Rate Loan, each Canadian Base Rate Loan and each Swingline Loan
shall be due and payable in arrears on the last Business Day of each calendar
quarter commencing March 31, 2008; and interest on each LIBOR Rate Loan shall be
due and payable on the last day of each Interest Period applicable thereto, and
if such Interest Period extends over three (3) months, at the end of each three
(3) month interval during such Interest Period.  All computations of
interest for Base Rate Loans when the Base Rate is determined by the Prime Rate
and Canadian Base Rate Loans shall be made on the basis of a year of 365 or 366
days, as the case may be, and assessed for the actual days
elapsed.  All other computations of fees and interest provided
hereunder shall be made on the basis of a 360-day year and actual days elapsed
(which results in more fees or interest, as applicable, being paid than if
computed on the basis of a 365-day year).

     

    (ii) For
greater certainty, whenever any amount is payable under this Agreement or any
other Loan Document by the Canadian Borrower as interest or as a fee which
requires the calculation of an amount using a percentage per annum, each party
to this Agreement acknowledges and agrees that such amount shall be calculated
as of the date payment is due without application of the “deemed reinvestment
principle” or the “effective yield method” (e.g., when interest is calculated
and payable monthly, the rate of interest payable per month is 1/12 of the
stated rate of interest per annum).

     

    (e) Maximum
Rate.

     

    (i) In no
contingency or event whatsoever shall the aggregate of all amounts deemed
interest under this Agreement charged or collected pursuant to the terms of this
Agreement exceed the highest rate permissible under any Applicable Law which a
court of competent jurisdiction shall, in a final determination, deem applicable
hereto.  In the event that such a court determines that the Lenders
have charged or received interest hereunder in excess of the highest applicable
rate, the rate in effect hereunder shall automatically be reduced to the maximum
rate permitted by Applicable Law and the Lenders shall at the Administrative
Agent’s option (A) promptly refund to the Borrowers any interest received by the
Lenders in excess of the maximum lawful rate or (B) apply such excess to the
principal balance of the Obligations on a pro rata
basis.  It is the intent hereof that the Borrowers not pay or contract
to pay, and that neither the Administrative Agent nor any Lender receive or
contract to receive, directly or indirectly in any manner whatsoever, interest
in excess of that which may be paid by the Borrowers under Applicable
Law.

     

    (ii) Notwithstanding
the provisions of this Section 5.1 or any
other provision of this Agreement, in no event shall the aggregate “interest”
(as such term is defined in Section 347 of the Criminal Code (Canada)) exceed
the effective annual rate of interest on the “credit advanced” (as such term is
defined in Section 347 of the Criminal Code (Canada)) lawfully permitted under
Section 347 of the Criminal Code (Canada).  The effective annual rate
of interest shall be determined in accordance with generally accepted actuarial
practices and principles over the term of the applicable Loan, and in the event
of a dispute, a certificate of a Fellow of the Canadian Institute of Actuaries
qualified for a period of ten (10) years and appointed by the Canadian Dollar
Lender will be conclusive for the purposes of such determination.  A
certificate of an authorized signing officer of the Canadian Dollar Lender as to
each amount and/or each rate of interest payable hereunder from time to time
shall be conclusive evidence of such amount and of such rate, absent manifest
error.

     

    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

    

     

    SECTION
5.2 Notice and Manner of
Conversion or Continuation of Loans

     

    Provided
that no Default or Event of Default has occurred and is then continuing, the US
Borrower, on behalf of itself and the Canadian Borrower, shall have the option
to (a) convert all or any portion of any outstanding Base Rate Loans in a
principal amount equal to $1,000,000 or any whole multiple of $1,000,000 in
excess thereof into one or more LIBOR Rate Loans (provided however that
no Revolving Credit Loan may be so converted until the third (3rd)
Business Day after the Closing Date unless the US Borrower has delivered to the
Administrative Agent a letter in form and substance satisfactory to the
Administrative Agent indemnifying the Revolving Credit Lenders in the manner set
forth in Section
5.9 of this Agreement) and (b) upon the expiration of any Interest
Period, (i) convert all or any part of its outstanding LIBOR Rate Loans in a
principal amount equal to $500,000 or a whole multiple of $100,000 in excess
thereof into Base Rate Loans or (ii) continue such LIBOR Rate Loans as LIBOR
Rate Loans.  Whenever the US Borrower desires to convert or continue
Revolving Credit Loans or Term Loans, as applicable, as provided above, the US
Borrower shall give the Administrative Agent irrevocable prior written notice in
the form attached as Exhibit E
(a “Notice of
Conversion/Continuation”) not later than 12:00 noon three (3) Business
Days before the day on which a proposed conversion or continuation of such
Revolving Credit Loan or such Term Loan, as applicable, is to be effective
specifying (A) the Revolving Credit Loans or Term Loans, as applicable, to be
converted or continued, and, in the case of any LIBOR Rate Loan to be converted
or continued, the last day of the Interest Period therefor, (B) the effective
date of such conversion or continuation (which shall be a Business Day), (C) the
principal amount of such Revolving Credit Loans or Term Loans, as applicable, to
be converted or continued, and (D) the Interest Period to be applicable to such
converted or continued LIBOR Rate Loan.  The Administrative Agent
shall promptly notify the applicable Lenders of such Notice of
Conversion/Continuation.

     

    SECTION
5.3 Fees

     

     

    (a) Facility
Fee.  Commencing on the Closing Date, the Borrowers shall pay
to the Administrative Agent, for the account of the Revolving Credit Lenders, a
non-refundable facility fee at a rate per annum equal to the Applicable Margin
on the Revolving Credit Commitment (regardless of usage).  The
facility fee shall be payable in arrears on the last Business Day of each
calendar quarter during the term of this Agreement commencing March 31, 2008,
and on the Revolving Credit Maturity Date.  Such facility fee shall be
distributed by the Administrative Agent to the Revolving Credit Lenders pro rata in accordance
with such Lenders’ respective Revolving Credit Commitment
Percentages.

     

    (b) Administrative Agent’s and
Other Fees.  In order to compensate the Administrative Agent
for structuring and syndicating the Loans and for its obligations hereunder, the
Borrowers agree to pay to the Administrative Agent and its affiliates, for their
own account, the fees set forth in the Fee Letter.

     

     

    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

    

     

    SECTION
5.4 Manner of
Payment

     

     

    (a) Loans Denominated in
Dollars.  Each payment by the US Borrower on account of the
principal of or interest on any Loan or Letter of Credit denominated in Dollars
or of any fee, commission or other amounts (including the Reimbursement
Obligation) payable to the Lenders under this Agreement or any Note (except as
set forth in Section
5.4(b)) shall be made in Dollars not later than 2:00 p.m. on the date
specified for payment under this Agreement to the Administrative Agent at the
Administrative Agent’s Office for the account of the Lenders (other than as set
forth below) pro rata in accordance
with their respective Commitment Percentages (except as specified below) in
immediately available funds and shall be made without any set-off, counterclaim
or deduction whatsoever.  Any payment received after such time but
before 3:00 p.m. on such day shall be deemed a payment on such date for the
purposes of Section
13.1, but for all other purposes shall be deemed to have been made on the
next succeeding Business Day.  Any payment received after 3:00 p.m.
shall be deemed to have been made on the next succeeding Business Day for all
purposes.

     

    (b) Canadian Dollar
Loans.  Each payment by the Borrowers on account of the
principal of or interest on the Canadian Dollar Loans shall be made in Canadian
Dollars not later than 2:00 p.m. on the date specified for payment under this
Agreement to the Administrative Agent’s account with the Canadian Dollar Lender
for the account of the Canadian Dollar Lender (other than as set forth below) in
immediately available funds, and shall be made without any set-off, counterclaim
or deduction whatsoever.  Any payment received after such time but
before 3:00 p.m. on such day shall be deemed a payment on such date for the
purposes of Section
13.1, but for all other purposes shall be deemed to have been made on the
next succeeding Business Day.  Any payment received after 3:00 p.m.
shall be deemed to have been made on the next succeeding Business Day for all
purposes.

     

    (c) General Payment
Provisions.  Upon receipt by the Administrative Agent of each
such payment, the Administrative Agent shall distribute to each Lender at its
address for notices set forth herein its pro rata share of such
payment in accordance with such Lender’s Commitment Percentage (except as
specified below) and shall wire advice of the amount of such credit to each
Lender.  Each payment to the Administrative Agent of the Issuing
Lender’s fees or L/C Participants’ commissions shall be made in like manner, but
for the account of the Issuing Lender or the L/C Participants, as the case may
be.  Each payment to the Administrative Agent of Administrative
Agent’s fees or expenses shall be made for the account of the Administrative
Agent and any amount payable to any Lender under Sections 5.9, 5.10, 5.11 or 15.2 shall be paid to
the Administrative Agent for the account of the applicable
Lender.  Each payment to the Administrative Agent with respect to
Swingline Loans (including, without limitation, the Swingline Lender’s fees or
expenses) shall be made for the account of the Swingline Lender.  Each
payment to the Administrative Agent with respect to the Canadian Dollar Loans
(including, without limitation, the Canadian Dollar Lender’s fees or expenses)
shall be made for the account of the Canadian Dollar Lender.  Subject
to Section
5.1(b)(ii) if any payment under this Agreement shall be specified to be
made upon a day which is not a Business Day, it shall be made on the next
succeeding day which is a Business Day and such extension of time shall in such
case be included in computing any interest if payable along with such
payment.

     

    
      
        
        

      

      
        49

        
          

        

      

      
        
        

      

    

     

    SECTION
5.5 Evidence of
Indebtedness

     

     

    (a) Extensions of
Credit.  The Extensions of Credit made by each Lender shall be
evidenced by one or more accounts or records maintained by such Lender and by
the Administrative Agent in the ordinary course of business.  The
accounts or records maintained by the Administrative Agent and each Lender shall
be conclusive absent manifest error of the amount of the Extensions of Credit
made by the Lenders to the Borrowers and the interest and payments
thereon.  Any failure to so record or any error in doing so shall not,
however, limit or otherwise affect the obligation of the Borrowers hereunder to
pay any amount owing with respect to the Obligations.  In the event of
any conflict between the accounts and records maintained by any Lender and the
accounts and records of the Administrative Agent in respect of such matters, the
accounts and records of the Administrative Agent shall control in the absence of
manifest error.  Upon the request of any Lender made through the
Administrative Agent, the Borrowers shall execute and deliver to such Lender
(through the Administrative Agent) a Revolving Credit Note, a Term Loan Note, a
Canadian Note and/or a Swingline Note, as applicable, which shall evidence such
Lender’s Revolving Credit Loans, Term Loans, Canadian Dollar Loans and/or
Swingline Loans, as applicable, in addition to such accounts or
records.  Each Lender may attach schedules to its Notes and endorse
thereon the date, amount and maturity of its Loans and payments with respect
thereto.

     

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

     

    SECTION
5.6 Adjustments

     

    If any
Lender shall, by exercising any right of setoff or counterclaim or otherwise,
obtain payment in respect of any principal of or interest on any of its Loans or
other obligations hereunder resulting in such Lender’s receiving payment of a
proportion of the aggregate amount of its Loans and accrued interest thereon or
other such obligations (other than pursuant to Sections 5.9, 5.10, 5.11 or 15.3 hereof) greater
than its pro
rata share
thereof as provided herein, then the Lender receiving such greater proportion
shall (a) notify the Administrative Agent of such fact, and (b) purchase (for
cash at face value) participations in the Loans and such other obligations of
the other Lenders, or make such other adjustments as shall be equitable, so that
the benefit of all such payments shall be shared by the Lenders ratably in
accordance with the aggregate amount of principal of and accrued interest on
their respective Loans and other amounts owing them; provided
that

     

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

     

    (ii) the
provisions of this Section shall not be construed to apply to (x) any payment
made by the Borrowers pursuant to and in accordance with the express terms of
this Agreement or (y) any payment obtained by a Lender as consideration for the
assignment of or sale of a participation in any of its Loans or participations
in Canadian Dollar Loans, Swingline Loans and Letters of Credit to any assignee
or participant, other than to a Borrower or any Subsidiary thereof (as to which
the provisions of this Section shall apply).

     

    
      
        
        

      

      
        50

        
          

        

      

      
        
        

      

    

     

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

     

    SECTION
5.7 Nature of Obligations of
Lenders Regarding Extensions of Credit; Assumption by the Administrative
Agent

     

    The
obligations of the Lenders under this Agreement to make, to issue or to
participate in Loans and Letters of Credit, as applicable, are several and are
not joint or joint and several.  Unless the Administrative Agent shall
have received notice from a Lender prior to a proposed borrowing date that such
Lender will not make available to the Administrative Agent such Lender’s ratable
portion of the amount to be borrowed on such date (which notice shall not
release such Lender of its obligations hereunder), the Administrative Agent may
assume that such Lender has made such portion available to the Administrative
Agent on the proposed borrowing date in accordance with Section 2.4(b), and
the Administrative Agent may, in reliance upon such assumption, make available
to the Borrowers on such date a corresponding amount.  If such amount
is made available to the Administrative Agent on a date after such borrowing
date, such Lender shall pay to the Administrative Agent on demand an amount,
until paid, equal to the product of (a) the amount not made available by such
Lender in accordance with the terms hereof, times (b) the daily average Federal
Funds Rate during such period as determined by the Administrative Agent, times
(c) a fraction the numerator of which is the number of days that elapse from and
including such borrowing date to the date on which such amount not made
available by such Lender in accordance with the terms hereof shall have become
immediately available to the Administrative Agent and the denominator of which
is 360.  A certificate of the Administrative Agent with respect to any
amounts owing under this Section shall be conclusive, absent manifest
error.  If such Lender’s Commitment Percentage of such borrowing is
not made available to the Administrative Agent by such Lender within three (3)
Business Days after such borrowing date, the Administrative Agent shall be
entitled to recover such amount made available by the Administrative Agent with
interest thereon at the rate per annum applicable to Base Rate Loans hereunder,
on demand, from the Borrowers.  The failure of any Lender to make
available its Commitment Percentage of any Loan requested by the Borrowers shall
not relieve it or any other Lender of its obligation, if any, hereunder to make
its Commitment Percentage of such Loan available on the borrowing date, but no
Lender shall be responsible for the failure of any other Lender to make its
Commitment Percentage of such Loan available on the borrowing
date.  Notwithstanding anything set forth herein to the contrary, any
Lender that fails to make available its Commitment Percentage of any Loan shall
not (a) have any voting or consent rights under or with respect to any Loan
Document (except that the Commitment of such Lender may not be increased or
extended without the consent of such Lender) or (b) constitute a “Lender” (or be
included in the calculation of Required Lenders hereunder) for any voting or
consent rights under or with respect to any Loan Document.

     

    
      
        
        

      

      
        51

        
          

        

      

      
        
        

      

    

     

    SECTION
5.8 Changed
Circumstances

     

     

    (a) Circumstances Affecting
LIBOR Rate and Canadian Dollar Availability.  If (i) with
respect to any Interest Period for any LIBOR Rate Loan the Administrative Agent
or any Lender (after consultation with the Administrative Agent) shall determine
that, by reason of circumstances affecting the foreign exchange and interbank
markets generally, deposits in eurodollars, in the applicable amounts are not
being quoted via the Reuters Page LIBOR01 (or any successor page) or offered to
the Administrative Agent or such Lender for such Interest Period, (ii) a
fundamental change has occurred in the foreign exchange or interbank markets
with respect to Canadian Dollars (including, without limitation, changes in
national or international financial, political or economic conditions or
currency exchange rates or exchange controls) or (iii) it has become otherwise
materially impractical for the Canadian Dollar Lender to make any Canadian
Dollar Loans, then the Administrative Agent shall forthwith give notice thereof
to the Borrowers.  Thereafter, until the Administrative Agent notifies
the Borrowers that such circumstances no longer exist, the obligation of the
Lenders or the Canadian Dollar Lender, as applicable, to make LIBOR Rate Loans
or Canadian Dollar Loans, as applicable, and the right of the US Borrower to
convert any Revolving Credit Loan or Term Loan to or continue any Revolving
Credit Loan or Term Loan as a LIBOR Rate Loan shall be suspended, and (i) the US
Borrower or the Canadian Borrower, as applicable, shall repay in full (or cause
to be repaid in full) the then outstanding principal amount of each such LIBOR
Rate Loan or Canadian Dollar Loan, as applicable, together with accrued interest
thereon, (A) with respect to any LIBOR Rate Loan, on the last day of the then
current Interest Period applicable to such LIBOR Rate Loan or (B) with respect
to any Canadian Dollar Loan, immediately upon the request of the Administrative
Agent or (ii) with respect to any LIBOR Rate Loan, convert the then outstanding
principal amount of such LIBOR Rate Loan to a Base Rate Loan as of the last day
of such Interest Period.

     

    (b) Laws Affecting LIBOR Rate
and Canadian Dollar Availability.  If, after the date hereof,
the introduction of, or any change in, any Applicable Law or any change in the
interpretation or administration thereof by any Governmental Authority, central
bank or comparable agency charged with the interpretation or administration
thereof, or compliance by any of the Lenders (or any of their respective Lending
Offices) with any request or directive (whether or not having the force of law)
of any such Governmental Authority, central bank or comparable agency, shall
make it unlawful or impossible for any of the Lenders (or any of their
respective Lending Offices) to honor its obligations hereunder to make or
maintain any LIBOR Rate Loan or Canadian Dollar Loan, such Lender shall promptly
give notice thereof to the Administrative Agent and the Administrative Agent
shall promptly give notice to the Borrowers and the other
Lenders.  Thereafter, until the Administrative Agent notifies the
Borrowers that such circumstances no longer exist, (i) the obligations of the
Lenders or the Canadian Dollar Lender, as applicable, to make LIBOR Rate Loans
or Canadian Dollar Loans, as applicable, and the right of the US Borrower to
convert any Revolving Credit Loan or Term Loan or continue any Revolving Credit
Loan or Term Loan as a LIBOR Rate Loan shall be suspended and thereafter the US
Borrower may select only Base Rate Loans hereunder, (ii) if any of the Lenders
may not lawfully continue to maintain a LIBOR Rate Loan to the end of the then
current Interest Period applicable thereto as a LIBOR Rate Loan, the applicable
LIBOR Rate Loan shall immediately be converted to a Base Rate Loan for the
remainder of such Interest Period and (iii) if the Canadian Dollar Lender may
not lawfully continue to maintain a Canadian Dollar Loan, the applicable
Canadian Dollar Loan shall immediately be repaid in full (together with accrued
interest thereon).

     

    
      
        
        

      

      
        52

        
          

        

      

      
        
        

      

    

     

    SECTION
5.9 Indemnity

     

    The US
Borrower hereby indemnifies each of the Lenders against any loss or expense
which may arise or be attributable to each Lender’s obtaining, liquidating or
employing deposits or other funds acquired to effect, fund or maintain any
Revolving Credit Loan or Term Loan (a) as a consequence of any failure by the US
Borrower to make any payment when due of any amount due hereunder in connection
with a LIBOR Rate Loan, (b) due to any failure of the US Borrower to borrow,
continue or convert on a date specified therefor in a Notice of Borrowing or
Notice of Conversion/Continuation or (c) due to any payment, prepayment or
conversion of any LIBOR Rate Loan on a date other than the last day of the
Interest Period therefor.  The amount of such loss or expense shall be
determined, in the applicable Lender’s sole discretion, based upon the
assumption that such Lender funded its Commitment Percentage of the LIBOR Rate
Loans in the London interbank market and using any reasonable attribution or
averaging methods which such Lender deems appropriate and
practical.  A certificate of such Lender setting forth the basis for
determining such amount or amounts necessary to compensate such Lender shall be
forwarded to the US Borrower through the Administrative Agent and shall be
conclusively presumed to be correct save for manifest error.

     

    SECTION
5.10 Increased
Costs

     

     

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

     

    (i) impose,
modify or deem applicable any reserve, special deposit, compulsory loan,
insurance charge or similar requirement against assets of, deposits with or for
the account of, or advances, loans or other credit extended or participated in
by, any Lender (except any reserve requirement reflected in the LIBOR Rate), the
Canadian Dollar Lender or the Issuing Lender (or any of their respective Lending
Offices);

     

    (ii) subject
any Lender, the Canadian Dollar Lender or the Issuing Lender to any tax of any
kind whatsoever with respect to this Agreement, any Canadian Dollar Loan, any
Letter of Credit, any participation in a Canadian Dollar Loan or a Letter of
Credit or any LIBOR Rate Loan made by it, or change the basis of taxation of
payments to such Lender, the Canadian Dollar Lender or the Issuing Lender in
respect thereof (except for Indemnified Taxes or Other Taxes covered by Section 5.11 and the
imposition of, or any change in the rate of any Excluded Tax payable by such
Lender, the Canadian Dollar Lender or the Issuing Lender); or

     

    (iii) impose on
any Lender, the Canadian Dollar Lender or the Issuing Lender (or any of their
respective Lending Offices) or the London interbank market any other condition,
cost or expense affecting this Agreement, any Canadian Dollar Loan, any Letter
of Credit, any participation in a Canadian Dollar Loan or a Letter of Credit or
any LIBOR Rate Loan made by it;

     

    and the
result of any of the foregoing shall be to increase the cost to such Lender, the
Canadian Dollar Lender or the Issuing Lender of making, converting into or
maintaining any LIBOR Rate Loan or Canadian Dollar Loan (or of maintaining its
obligation to make any such Loan), or to increase the cost to such Lender, the
Canadian Dollar Lender or the Issuing Lender of participating in, issuing or
maintaining any Canadian Dollar Loan or Letter of Credit (or of maintaining its
obligation to participate in or to issue any Canadian Dollar Loan or Letter of
Credit), or to reduce the amount of any sum received or receivable by such
Lender, the Canadian Dollar Lender or the Issuing Lender hereunder (whether of
principal, interest or any other amount) then, upon request of such Lender, the
Canadian Dollar Lender or the Issuing Lender, the Borrowers shall promptly pay
to any such Lender, the Canadian Dollar Lender or the Issuing Lender, as the
case may be, such additional amount or amounts as will compensate such Lender,
the Canadian Dollar Lender or the Issuing Lender, as the case may be, for such
additional costs incurred or reduction suffered.

     

    
      
        
        

      

      
        53

        
          

        

      

      
        
        

      

    

     

    (b) Capital
Requirements.  If any Lender, the Canadian Dollar Lender or the
Issuing Lender determines that any Change in Law affecting such Lender, the
Canadian Dollar Lender or the Issuing Lender or any Lending Office of such
Lender, the Canadian Dollar Lender or such Lender’s, the Canadian Dollar
Lender’s or the Issuing Lender’s holding company, if any, regarding capital
requirements has or would have the effect of reducing the rate of return on such
Lender’s, the Canadian Dollar Lender’s or the Issuing Lender’s capital or on the
capital of such Lender’s, the Canadian Dollar Lender’s or the Issuing Lender’s
holding company, if any, as a consequence of this Agreement, the Commitments of
such Lender, the Canadian Lender or the Issuing Lender or the Loans made by, or
participations in Letters of Credit held by, such Lender, the Canadian Dollar
Lender or the Issuing Lender or the Letters of Credit issued by the Issuing
Lender, to a level below that which such Lender, the Canadian Dollar or the
Issuing Lender or such Lender’s, the Canadian Dollar Lender’s or the Issuing
Lender’s holding company could have achieved but for such Change in Law (taking
into consideration such Lender’s, the Canadian Dollar Lender’s or the Issuing
Lender’s policies and the policies of such Lender’s, the Canadian Dollar
Lender’s or the Issuing Lender’s holding company with respect to capital
adequacy), then from time to time the Borrowers shall promptly pay to such
Lender, the Canadian Dollar Lender or the Issuing Lender, as the case may be,
such additional amount or amounts as will compensate such Lender, the Canadian
Dollar Lender or the Issuing Lender or such Lender’s, the Canadian Dollar
Lender’s or the Issuing Lender’s holding company for any such reduction
suffered.

     

    (c) Certificates for
Reimbursement.  A certificate of a Lender, the Canadian Dollar
Lender or the Issuing Lender setting forth the amount or amounts necessary to
compensate such Lender, the Canadian Dollar Lender or the Issuing Lender or its
holding company, as the case may be, as specified in subsection (a) or (b) of
this Section and delivered to the Borrowers shall be conclusive absent manifest
error.  The Borrowers shall pay such Lender, the Canadian Dollar
Lender or the Issuing Lender, as the case may be, the amount shown as due on any
such certificate within ten (10) days after receipt thereof.

     

    (d) Delay in
Requests.  Failure or delay on the part of any Lender, the
Canadian Dollar Lender or the Issuing Lender to demand compensation pursuant to
this Section shall not constitute a waiver of such Lender’s, the Canadian Dollar
Lender’s or the Issuing Lender’s right to demand such compensation; provided that the
Borrowers shall not be required to compensate a Lender, the Canadian Dollar
Lender or the Issuing Lender pursuant to this Section for any increased costs
incurred or reductions suffered more than nine (9) months prior to the date that
such Lender, the Canadian Dollar Lender or the Issuing Lender, as the case may
be, notifies the Borrowers of the Change in Law giving rise to such increased
costs or reductions and of such Lender’s, the Canadian Dollar Lender’s or the
Issuing Lender’s intention to claim compensation therefor (except that, if the
Change in Law giving rise to such increased costs or reductions is retroactive,
then the nine-month period referred to above shall be extended to include the
period of retroactive effect thereof).

     

    
      
        
        

      

      
        54

        
          

        

      

      
        
        

      

    

     

    SECTION
5.11 Taxes

     

     

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

     

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

     

    (c) Indemnification by the
Borrowers.  The Borrowers shall indemnify the Administrative
Agent, each Lender and the Issuing Lender, within ten (10) days after demand
therefor, for the full amount of any Indemnified Taxes or Other Taxes (including
Indemnified Taxes or Other Taxes imposed or asserted on or attributable to
amounts payable under this Section) paid by the Administrative Agent, such
Lender or the Issuing Lender, as the case may be, and any penalties, interest
and reasonable expenses arising therefrom or with respect thereto, whether or
not such Indemnified Taxes or Other Taxes were correctly or legally imposed or
asserted by the relevant Governmental Authority.  A certificate as to
the amount of such payment or liability delivered to the US Borrower by a Lender
or the Issuing Lender (with a copy to the Administrative Agent), or by the
Administrative Agent on its own behalf or on behalf of a Lender or the Issuing
Lender, shall be conclusive absent manifest error.

     

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

     

    (e) Status of
Lenders.  Any Foreign Lender that is entitled to an exemption
from or reduction of withholding tax under the law of the jurisdiction in which
a Borrower is resident for tax purposes, or any treaty to which such
jurisdiction is a party, with respect to payments hereunder or under any other
Loan Document shall deliver to the applicable Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by Applicable Law or
reasonably requested by the applicable Borrower or the Administrative Agent,
such properly completed and executed documentation prescribed by Applicable Law
as will permit such payments to be made without withholding or at a reduced rate
of withholding.  In addition, any Lender, if requested by the
applicable Borrower or the Administrative Agent, shall deliver such other
documentation prescribed by Applicable Law or reasonably requested by the
applicable Borrower or the Administrative Agent as will enable the applicable
Borrower or the Administrative Agent to determine whether or not such Lender is
subject to backup withholding or information reporting
requirements.  Without limiting the generality of the foregoing, in
the event that the applicable Borrower is a resident for tax purposes in the
United States, any Foreign Lender shall deliver to the applicable Borrower and
the Administrative Agent (in such number of copies as shall be requested by the
recipient) on or prior to the date on which such Foreign Lender becomes a Lender
under this Agreement (and from time to time thereafter upon the request of the
applicable Borrower or the Administrative Agent, but only if such Foreign Lender
is legally entitled to do so), whichever of the following is
applicable:

     

    
      
        
        

      

      
        55

        
          

        

      

      
        
        

      

    

     

    (i) duly
completed copies of Internal Revenue Service Form W-8BEN claiming eligibility
for benefits of an income tax treaty to which the United States is a
party,

     

    (ii) duly
completed copies of Internal Revenue Service Form W-8ECI,

     

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

     

    (iv) any other
form prescribed by Applicable Law as a basis for claiming exemption from or a
reduction in United States Federal withholding tax duly completed together with
such supplementary documentation as may be prescribed by Applicable Law to
permit applicable Borrower to determine the withholding or deduction required to
be made.

     

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

     

    
      
        
        

      

      
        56

        
          

        

      

      
        
        

      

    

     

    (f) Treatment of Certain
Refunds.  If the Administrative Agent, a Lender or the Issuing
Lender determines, in its sole discretion, that it has received a refund of any
Taxes or Other Taxes as to which it has been indemnified by the Borrowers or
with respect to which the Borrowers have paid additional amounts pursuant to
this Section, it shall pay to the Borrowers an amount equal to such refund (but
only to the extent of indemnity payments made, or additional amounts paid, by
the Borrowers under this Section with respect to the Taxes or Other Taxes giving
rise to such refund), net of all out-of-pocket expenses of the Administrative
Agent, such Lender or the Issuing Lender, as the case may be, and without
interest (other than any interest paid by the relevant Governmental Authority
with respect to such refund); provided that the
Borrowers, upon the request of the Administrative Agent, such Lender or the
Issuing Lender, agree to repay the amount paid over to the Borrowers (plus any
penalties, interest or other charges imposed by the relevant Governmental
Authority) to the Administrative Agent, such Lender or the Issuing Lender in the
event the Administrative Agent, such Lender or the Issuing Lender is required to
repay such refund to such Governmental Authority.  This subsection
shall not be construed to require the Administrative Agent, any Lender or the
Issuing Lender to make available its tax returns (or any other information
relating to its taxes which it deems confidential) to the Borrowers or any other
Person.

     

    (g) Survival.  Without
prejudice to the survival of any other agreement of the Borrowers hereunder, the
agreements and obligations of the Borrowers contained in this Section shall
survive the payment in full of the Obligations and the termination of the
Commitments.

     

    SECTION
5.12 Mitigation Obligations;
Replacement of Lenders

     

     

    (a) Designation of a Different
Lending Office.  If any Lender requests compensation under
Section 5.10,
or requires the Borrowers to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 5.11, then
such Lender shall use reasonable efforts to designate a different Lending Office
for funding or booking its Loans hereunder or to assign its rights and
obligations hereunder to another of its offices, branches or affiliates, if, in
the judgment of such Lender, such designation or assignment (i) would eliminate
or reduce amounts payable pursuant to Section 5.10 or Section 5.11, as the
case may be, in the future and (ii) would not subject such Lender to any
unreimbursed cost or expense and would not otherwise be disadvantageous to such
Lender. The Borrowers hereby agree to pay all reasonable costs and expenses
incurred by any Lender in connection with any such designation or
assignment.

     

    (b) Replacement of
Lenders.  If any Lender requests compensation under Section 5.10, or if
the Borrowers are required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 5.11, or if
any Lender defaults in its obligation to fund Loans hereunder, then the
Borrowers may, at their sole expense and effort, upon notice to such Lender and
the Administrative Agent, require such Lender to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in, and
consents required by, Section 15.11), all
of its interests, rights and obligations under this Agreement and the related
Loan Documents to an assignee that shall assume such obligations (which assignee
may be another Lender, if a Lender accepts such assignment); provided
that:

     

    
      
        
        

      

      
        57

        
          

        

      

      
        
        

      

    

     

    (i) the
Borrowers shall have paid to the Administrative Agent the assignment fee
specified in Section
15.11;

     

    (ii) such
Lender shall have received payment of an amount equal to the outstanding
principal of its Loans and participations in Letters of Credit, accrued interest
thereon, accrued fees and all other amounts payable to it hereunder and under
the other Loan Documents (including any amounts under Section 5.9) from the
assignee (to the extent of such outstanding principal and accrued interest and
fees) or the Borrowers (in the case of all other amounts);

     

    (iii) in the
case of any such assignment resulting from a claim for compensation under Section 5.10 or
payments required to be made pursuant to Section 5.11, such
assignment will result in a reduction in such compensation or payments
thereafter; and

     

    (iv) such
assignment does not conflict with Applicable Law.

     

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

     

    SECTION
5.13 Redenomination of Canadian
Dollar Loans

     

    .  If
any Canadian Dollar Loan is required to bear interest based at the Base Rate
rather than the Canadian Base Rate pursuant to any applicable provision hereof,
such Loan shall be funded in Dollars in an amount equal to the Dollar Amount of
such Canadian Dollar Loan, all subject to the provisions of Section
2.4(b).  The Borrowers shall reimburse the Lenders upon any
such conversion for any amounts required to be paid under Section
5.9.

     

    SECTION
5.14 US Borrower as Agent for the
Canadian Borrower

     

    The
Canadian Borrower hereby irrevocably appoints and authorizes the US Borrower (a)
to provide the Administrative Agent with all notices with respect to Extensions
of Credit obtained for the benefit of either Borrower and all other notices and
instructions under this Agreement, (b) to take such action on behalf of the
Borrowers as the US Borrower deems appropriate on its behalf to obtain
Extensions of Credit and to exercise such other powers as are reasonably
incidental thereto to carry out the purposes of this Agreement and (c) to act as
its agent for service of process and notices required to be delivered under this
Agreement or the other Loan Documents, it being understood and agreed that
receipt by the US Borrower of any summons, notice or other similar item shall be
deemed effective receipt by the Borrowers and their Subsidiaries.

     

    
      
        
        

      

      
        58

        
          

        

      

      
        
        

      

    

     

    ARTICLE
VI                                

    CLOSING; CONDITIONS OF
CLOSING AND BORROWING

    SECTION
6.1 Closing

     

    The
closing shall take place at the offices of Kennedy Covington Lobdell &
Hickman, L.L.P. at 10:00 a.m. on December 20, 2007, or on such other place,
date and time as the parties hereto shall mutually agree.

     

    SECTION
6.2 Conditions to Closing and
Initial Extensions of Credit

     

    The
obligation of the Lenders to close this Agreement and to make the initial Loan
or issue or participate in the initial Letter of Credit, if any, is subject to
the satisfaction of each of the following conditions:

     

    (a) Executed Loan
Documents.  This Agreement, a Revolving Credit Note in favor of
each Lender requesting a Revolving Credit Note, a Canadian Note in favor of the
Canadian Dollar Lender (if requested thereby), a Swingline Note in favor of the
Swingline Lender (if requested thereby), the Subsidiary Guaranty Agreement,
together with any other applicable Loan Documents, shall have been duly
authorized, executed and delivered to the Administrative Agent by the parties
thereto, shall be in full force and effect and no Default or Event of Default
shall exist hereunder or thereunder.

     

    (b) Closing Certificates;
Etc.  The Administrative Agent shall have received each of the
following in form and substance reasonably satisfactory to the Administrative
Agent:

     

    (i) Officer’s Certificate of the
US Borrower.  A certificate from a Responsible Officer of the
US Borrower to the effect that all representations and warranties of the Credit
Parties contained in this Agreement and the other Loan Documents are true,
correct and complete in all material respects as of the Closing Date, except for
any representation and warranty made as of an earlier date, which representation
and warranty shall remain true and correct as of such earlier date; provided that any
representation and warranty that is qualified by materiality or by reference to
Material Adverse Effect shall be true, correct and complete in all respects as
of the Closing Date; that none of the Credit Parties are in violation of any of
the covenants contained in this Agreement and the other Loan Documents; that,
after giving effect to the transactions contemplated by this Agreement, no
Default or Event of Default has occurred and is continuing; and that each of the
Credit Parties, as applicable, has satisfied each of the conditions set forth in
Section 6.2 and
Section
6.3.

     

    (ii) Certificate of Responsible
Officer of each Credit Party.  A certificate of a Responsible
Officer of each Credit Party certifying as to the incumbency and genuineness of
the signature of each officer of such Credit Party executing Loan Documents to
which it is a party and certifying that attached thereto is a true, correct and
complete copy of (A) the articles of incorporation (or equivalent documentation)
of such Credit Party and all amendments thereto, certified as of a recent date
by the appropriate Governmental Authority in its jurisdiction of incorporation
or formation, (B) the bylaws (or equivalent documentation) of such Credit Party
as in effect on the Closing Date, (C) resolutions duly adopted by the board of
directors (or equivalent governing body) of such Credit Party authorizing the
transactions contemplated hereunder and the execution, delivery and performance
of this Agreement and the other Loan Documents to which it is a party, and (D)
each certificate required to be delivered pursuant to Section
6.2(b)(iii).

     

    
      
        
        

      

      
        59

        
          

        

      

      
        
        

      

    

     

    (iii) Certificates of Good
Standing.  Certificates as of a recent date of the good
standing or status of each Credit Party under the laws of its jurisdiction of
organization and, to the extent requested by the Administrative Agent, each
other jurisdiction where such Credit Party is qualified to do business and, to
the extent available, a certificate of the relevant taxing authorities of such
jurisdictions certifying that such Credit Party has filed required tax returns
and owes no delinquent taxes.

     

    (iv) Opinions of
Counsel.  Favorable opinions of counsel to the Credit Parties
addressed to the Administrative Agent and the Lenders with respect to the Credit
Parties, the Loan Documents and such other matters as the Lenders shall request,
each in form and substance satisfactory to the Administrative Agent (including,
without limitation, favorable opinions of foreign counsel to the Credit
Parties), which such opinions shall expressly permit reliance by successors and
assigns of the Administrative Agent and the Lenders.

     

    (v) Tax
Forms.  Copies of the United States Internal Revenue Service
forms required by Section
5.11(e).

     

    (vi) Liability
Insurance.  The Administrative Agent shall have received
certificates evidencing the insurance required to be maintained pursuant to
Section 9.3,
evidence of payment of all insurance premiums for the current policy year of
each insurance policy and, if requested by the Administrative Agent, copies
(certified by a Responsible Officer) of each insurance policy in form and
substance reasonably satisfactory to the Administrative Agent.

     

    (c) Consents;
Defaults.

     

    (i) Governmental and Third Party
Approvals.  The Credit Parties shall have received all material
governmental, shareholder and third party consents and approvals necessary (or
any other material consents as determined in the reasonable discretion of the
Administrative Agent) in connection with the transactions contemplated by this
Agreement and the other Loan Documents and the other transactions contemplated
hereby and all applicable waiting periods shall have expired without any action
being taken by any Person that could reasonably be expected to restrain, prevent
or impose any material adverse conditions on any of the Credit Parties or such
other transactions or that could seek or threaten any of the foregoing, and no
law or regulation shall be applicable which in the reasonable judgment of the
Administrative Agent could reasonably be expected to have such
effect.

     

    (ii) No Injunction,
Etc.  No action, proceeding, investigation, regulation or
legislation shall have been instituted, threatened or proposed before any
Governmental Authority to enjoin, restrain, or prohibit, or to obtain
substantial damages in respect of, or which is related to or arises out of this
Agreement or the other Loan Documents or the consummation of the transactions
contemplated hereby or thereby, or which, in the Administrative Agent’s sole
discretion, would make it inadvisable to consummate the transactions
contemplated by this Agreement or the other Loan Documents or the consummation
of the transactions contemplated hereby or thereby.

     

    
      
        
        

      

      
        60

        
          

        

      

      
        
        

      

    

     

    (d) Financial
Matters.

     

    (i) Financial
Statements.  The Administrative Agent and the Lenders shall
have received the following financial statements of the US Borrower and its
Subsidiaries, all in form and substance reasonably satisfactory to the
Administrative Agent and the Lenders and prepared in accordance with GAAP (and,
with respect to all audited financial statements, to be audited by an
independent certified public accounting firm reasonably satisfactory to the
Administrative Agent):

     

    (A)           the
audited consolidated financial statements of the US Borrower and its
Subsidiaries for the Fiscal Years ended December 31, 2004, December 31, 2005 and
December 31, 2006; and

     

    (B)           the
unaudited consolidated financial statements of the US Borrower and its
Subsidiaries for each interim quarterly period ended after the date of the last
audited financial statements for which financial statements are
available.

     

    (ii) Financial
Projections.  The Administrative Agent shall have received
financial projections with respect to the US Borrower and its Subsidiaries
prepared by a Responsible Officer of the US Borrower, in form reasonably
satisfactory to the Administrative Agent, of balance sheets, income
statements and cash flow statements on a quarterly basis for the first year
following the Closing Date and an annual basis for the next five (5) years
thereafter.

     

    (iii) Financial Condition
Certificate.  The US Borrower shall have delivered to the
Administrative Agent a certificate, in form and substance satisfactory to the
Administrative Agent, and certified as accurate by a Responsible Officer of the
US Borrower, that (A) the US Borrower and each of its Subsidiaries are each
Solvent, (B) the payables of each Borrower and each of its Subsidiaries are
current and not past due (except to the extent consistent with the past practice
of the Borrowers and their respective Subsidiaries), (C) attached thereto are
calculations evidencing compliance on a pro forma basis with the
covenants contained in Article X hereof,
(D) the financial projections previously delivered to the Administrative
Agent represent the good faith estimates (utilizing reasonable assumptions) of
the financial condition and operations of the Borrowers and their respective
Subsidiaries; and (E) attached thereto is a calculation of the Applicable
Margin.

     

    (iv) Payment at Closing; Fee
Letters. The Borrowers shall have paid to the Administrative Agent and
the Lenders the fees set forth or referenced in Section 5.3 and any
other accrued and unpaid fees or commissions due hereunder (including, without
limitation, legal fees and expenses) and to any other Person such amount as may
be due thereto in connection with the transactions contemplated hereby,
including all taxes, fees and other charges in connection with the execution,
delivery, recording, filing and registration of any of the Loan
Documents.

     

    (e) Miscellaneous.

     

    (i) Notice of
Borrowing.  The Administrative Agent shall have received a
Notice of Borrowing from the applicable Borrower in accordance with Section 2.4(a) and a
Notice of Account Designation from the US Borrower specifying the account or
accounts to which the proceeds of any Loans made after the Closing Date are to
be disbursed.

     

     

    
      
        
        

      

      
        61

        
          

        

      

      
        
        

      

    

     

    (ii) Due
Diligence.  The Administrative Agent shall have completed, to
its satisfaction, all legal and other due diligence with respect to the
business, assets, liabilities, operations and condition (financial or otherwise)
of the US Borrower and its Subsidiaries in scope and determination satisfactory
to the Administrative Agent in its sole discretion.  In connection
therewith, the Administrative Agent may request the results of a Lien search
(including a search as to judgments, pending litigation and tax matters), in
form and substance reasonably satisfactory thereto, made against the Credit
Parties under the Uniform Commercial Code (or applicable judicial docket) as in
effect in any state or comparable legislation in other jurisdictions in which
any of the assets of such Credit Party are located, indicating among other
things that its assets are free and clear of any Lien except for Permitted
Liens.

     

    (iii) Existing
Facility.  All indebtedness (including, without limitation, all
accrued interest and fees) under the Existing Credit Agreement (other than
indebtedness with respect to the Term Loans under the Existing Credit Agreement
and Existing Letters of Credit) shall be refinanced and replaced by the
Revolving Credit Facility and the Administrative Agent shall make such transfers
of funds as are necessary in order that the outstanding balance of such Loans,
together with any Loans funded on the Closing Date, reflect the respective
Revolving Credit Commitment of the Lenders hereunder.

     

    (iv) Other
Documents.  All opinions, certificates and other instruments
and all proceedings in connection with the transactions contemplated by this
Agreement shall be satisfactory in form and substance to the Administrative
Agent.  The Administrative Agent shall have received copies of all
other documents, certificates and instruments reasonably requested thereby, with
respect to the transactions contemplated by this Agreement.

     

    SECTION
6.3 Conditions to All
Extensions of
Credit

     

    The
obligations of the Lenders to make any Extensions of Credit (including the
initial Extension of Credit), convert or continue any Loan and/or the Issuing
Lender to issue or extend any Letter of Credit are subject to the satisfaction
of the following conditions precedent on the relevant borrowing, continuation,
conversion, issuance or extension date:

     

    (a) Continuation of
Representations and Warranties.  The representations and
warranties contained in Article VII shall be
true and correct on and as of such borrowing, continuation, conversion, issuance
or extension date with the same effect as if made on and as of such date, except
for any representation and warranty made as of an earlier date, which
representation and warranty shall remain true and correct as of such earlier
date.

     

    (b) No Existing
Default.  No Default or Event of Default shall have occurred
and be continuing (i) on the borrowing, continuation or conversion date with
respect to such Loan or after giving effect to the Loans to be made, continued
or converted on such date or (ii) on the issuance or extension date with respect
to such Letter of Credit or after giving effect to the issuance or extension of
such Letter of Credit on such date.

     

    
      
        
        

      

      
        62

        
          

        

      

      
        
        

      

    

     

    (c) Notices.  The
Administrative Agent shall have received a Notice of Borrowing or Notice of
Conversion/Continuation, as applicable, from the US Borrower in accordance with
Section 2.4(a)
and Section
5.2.

     

    (d) Additional
Documents.  The Administrative Agent shall have received each
additional document, instrument, legal opinion or other item reasonably
requested by it.

     

    ARTICLE
VII                                           

    REPRESENTATIONS AND
WARRANTIES OF THE BORROWERS

    SECTION
7.1 Representations and
Warranties

     

    To induce
the Administrative Agent and Lenders to enter into this Agreement and to induce
the Lenders to make Extensions of Credit, each Borrower hereby represents and
warrants to the Administrative Agent and Lenders both before and after giving
effect to the transactions contemplated hereunder that:

     

    (a) Organization; Power;
Qualification.  Each of the US Borrower and its Subsidiaries is
duly organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or formation, has the power and authority to
own its properties and to carry on its business as now being and hereafter
proposed to be conducted and is duly qualified and authorized to do business in
each jurisdiction in which the character of its properties or the nature of its
business requires such qualification and authorization, except where the failure
to be qualified or authorized, individually or in the aggregate could not
reasonably be expected to have a Material Adverse Effect.  The
jurisdictions in which the US Borrower and its Subsidiaries are organized and
qualified to do business as of the Closing Date are described on Schedule
7.1(a).

     

    (b) Ownership.  Each
Subsidiary of the US Borrower as of the Closing Date is listed on Schedule
7.1(b).  As of the Closing Date, the capitalization of the US
Borrower and its Subsidiaries consists of the number of shares, authorized,
issued and outstanding, of such classes and series, with or without par value,
described on Schedule
7.1(b).  All outstanding shares have been duly authorized and
validly issued and are fully paid and nonassessable, with no personal liability
attaching to the ownership thereof, and not subject to any preemptive or similar
rights.  The shareholders of the Subsidiaries of the US Borrower and
the number of shares owned by each as of the Closing Date are described on Schedule
7.1(b).  As of the Closing Date, there are no outstanding stock
purchase warrants, subscriptions, options, securities, instruments or other
rights of any type or nature whatsoever, which are convertible into,
exchangeable for or otherwise provide for or permit the issuance of Capital
Stock of the US Borrower or its Subsidiaries, except as described on Schedule
7.1(b).

     

    (c) Authorization of Agreement,
Loan Documents and Borrowing. Each of the US Borrower and its
Subsidiaries has the right, power and authority and has taken all necessary
corporate and other action to authorize the execution, delivery and performance
of this Agreement and each of the other Loan Documents to which it is a party in
accordance with their respective terms.  This Agreement and each of
the other Loan Documents has been duly executed and delivered by the duly
authorized officers of the US Borrower and each of its Subsidiaries party
thereto, and each such document constitutes the legal, valid and binding
obligation of the US Borrower or its Subsidiary party thereto, enforceable in
accordance with its terms, except as such enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar state or federal
debtor relief laws from time to time in effect which affect the enforcement of
creditors’ rights in general and the availability of equitable
remedies.

     

    
      
        
        

      

      
        63

        
          

        

      

      
        
        

      

    

     

    (d) Compliance of Agreement,
Loan Documents and Borrowing with Laws, Etc.  The execution,
delivery and performance by the US Borrower and its Subsidiaries of the Loan
Documents to which each such Person is a party, in accordance with their
respective terms, the Extensions of Credit hereunder and the transactions
contemplated hereby do not and will not, by the passage of time, the giving of
notice or otherwise, (i) require any Governmental Approval or violate any
Applicable Law relating to the US Borrower or any of its Subsidiaries, (ii)
conflict with, result in a breach of or constitute a default under the articles
of incorporation, bylaws or other organizational documents of the US Borrower or
any of its Subsidiaries or any indenture, agreement or other instrument to which
such Person is a party or by which any of its properties may be bound or any
Governmental Approval relating to such Person, (iii) result in or require the
creation or imposition of any Lien upon or with respect to any property now
owned or hereafter acquired by such Person other than Liens arising under the
Loan Documents or (iv) require any consent or authorization of, filing with, or
other act in respect of, an arbitrator or Governmental Authority and no consent
of any other Person is required in connection with the execution, delivery,
performance, validity or enforceability of this Agreement.

     

    (e) Compliance with Law;
Governmental Approvals.  Each of the US Borrower and its
Subsidiaries (i) has all Governmental Approvals required by any Applicable Law
for it to conduct its business, each of which is in full force and effect, is
final and not subject to review on appeal and is not the subject of any pending
or, to the best of its knowledge, threatened attack by direct or collateral
proceeding, except where the failure to do so, individually or in the aggregate,
could not reasonably be expected to have a Material Adverse Effect (ii) is in
compliance with each Governmental Approval applicable to it and in compliance
with all other Applicable Law relating to it or any of its respective
properties, except where the failure to comply, individually or in the
aggregate, could not reasonably be expected to have a Material Adverse Effect
and (iii) has timely filed all material reports, documents and other materials
required to be filed by it under all Applicable Law with any Governmental
Authority and has retained all material records and documents required to be
retained by it under Applicable Law, except where the failure to do so,
individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect.

     

    (f) Tax Returns and
Payments.  Each of the US Borrower and its Subsidiaries has
duly filed or caused to be filed all federal, state, provincial, local and other
material tax returns required by Applicable Law to be filed, and has paid, or
made adequate provision for the payment of, all federal, state, provincial,
local and other material taxes, assessments and governmental charges or levies
upon it and its property, income, profits and assets which are due and payable
(other than any amount the validity of which is currently being contested in
good faith by appropriate proceedings and with respect to which adequate
reserves in conformity with GAAP have been provided for on the books of the US
Borrower and its Subsidiaries and no Lien exists).  Such returns
accurately reflect in all material respects all liability for taxes of the US
Borrower and its Subsidiaries for the periods covered thereby.  There
is no ongoing audit or examination or other investigation by any Governmental
Authority of the tax liability of the US Borrower and its Subsidiaries in each
case, except as could not reasonably be expected to have a liability in excess
of $5,000,000. No Governmental Authority has asserted any Lien or other claim
against the US Borrower or any Subsidiary thereof with respect to unpaid taxes
which has not been discharged, resolved or adequately reserved for on the books
of the US Borrower and its Subsidiaries.  The charges, accruals and
reserves on the books of the US Borrower and any of its Subsidiaries in respect
of federal, state, provincial, local and other taxes for all Fiscal Years and
portions thereof since the organization of the US Borrower and any of its
Subsidiaries are in the judgment of the Borrowers adequate, and the Borrowers do
not anticipate any additional taxes or assessments for any of such years beyond
those for which such reserves have been made.

     

    
      
        
        

      

      
        64

        
          

        

      

      
        
        

      

    

     

    (g) Intellectual Property
Matters.  Each of the US Borrower and its Subsidiaries owns or
possesses rights to use all franchises, licenses, copyrights, copyright
applications, patents, patent rights or licenses, patent applications,
trademarks, trademark rights, service mark, service mark rights, trade names,
trade name rights, copyrights and other rights with respect to the foregoing
which are required to conduct its business, except as could not reasonably be
expected, individually or in the aggregate, to have a Material Adverse
Effect.  No event has occurred which permits, or after notice or lapse
of time or both would permit, the revocation or termination of any such rights,
and neither the US Borrower nor any Subsidiary thereof is liable to any Person
for infringement under Applicable Law with respect to any such rights as a
result of its business operations, except any such revocation, termination or
liability as could not reasonably be expected, individually or in the aggregate,
to have a Material Adverse Effect.

     

    (h) Environmental
Matters.

     

    (i) The
properties owned, leased or operated by the US Borrower and its Subsidiaries now
or in the past do not contain, and to their knowledge have not previously
contained, any Hazardous Materials in amounts or concentrations which (A)
constitute or constituted a violation of applicable Environmental Laws or (B)
could give rise to liability under applicable Environmental Laws, except where
such violation or liability could not reasonably be expected, individually or in
the aggregate, to have a Material Adverse Effect;

     

    (ii) The US
Borrower, each Subsidiary and such properties and all operations conducted in
connection therewith are in compliance, and have been in compliance, with all
applicable Environmental Laws, and there is no contamination at, under or about
such properties or such operations which could interfere with the continued
operation of such properties or impair the fair saleable value thereof, except
for any such noncompliance or contamination, that could not reasonably be
expected, individually or in the aggregate, to have a Material Adverse
Effect;

     

    (iii) Neither
the US Borrower nor any Subsidiary thereof has received any notice of violation,
alleged violation, non-compliance, liability or potential liability regarding
environmental matters, Hazardous Materials, or compliance with Environmental
Laws, nor does the US Borrower or any Subsidiary thereof have knowledge or
reason to believe that any such notice will be received or is being threatened,
except where such violation, alleged violation, noncompliance, liability or
potential liability which is the subject of such notice could not reasonably be
expected, individually or in the aggregate, to have a Material Adverse
Effect;

     

    
      
        
        

      

      
        65

        
          

        

      

      
        
        

      

    

     

    (iv) Hazardous
Materials have not been transported or disposed of to or from the properties
owned, leased or operated by the US Borrower and its Subsidiaries in violation
of, or in a manner or to a location which could give rise to liability under,
Environmental Laws, nor have any Hazardous Materials been generated, treated,
stored or disposed of at, on or under any of such properties in violation of, or
in a manner that could give rise to liability under, any applicable
Environmental Laws, except where such violation or liability could not
reasonably be expected, individually or in the aggregate, to have a Material
Adverse Effect;

     

    (v) No
judicial proceedings or governmental or administrative action is pending, or, to
the knowledge of the Borrowers, threatened, under any Environmental Law to which
the US Borrower or any Subsidiary thereof is or will be named as a potentially
responsible party with respect to such properties or operations conducted in
connection therewith, nor are there any consent decrees or other decrees,
consent orders, administrative orders or other orders, or other administrative
or judicial requirements outstanding under any Environmental Law with respect to
US Borrower, any Subsidiary or such properties or such operations; except where
such proceeding, action, degree, order or other requirement could not reasonably
be expected, individually or in the aggregate, to have a Material Adverse
Effect; and

     

    (vi) There has
been no release, or to the best of the Borrowers’ knowledge, threat of release,
of Hazardous Materials at or from properties owned, leased or operated by the US
Borrower or any Subsidiary, now or in the past, in violation of or in amounts or
in a manner that could give rise to liability under Environmental Laws, except
where such violation or liability could not reasonably be expected, individually
or in the aggregate, to have a Material Adverse Effect.

     

    (i) ERISA.

     

    (i) As of the
Closing Date, neither the US Borrower nor any ERISA Affiliate maintains or
contributes to, or has any obligation under, any Employee Benefit Plans other
than those identified on Schedule
7.1(i);

     

    (ii) The US
Borrower and each ERISA Affiliate is in material compliance with all applicable
provisions of ERISA and the regulations and published interpretations thereunder
with respect to all Employee Benefit Plans except for any required amendments
for which the remedial amendment period as defined in Section 401(b) of the Code
has not yet expired and except where a failure to so comply could not reasonably
be expected to have a Material Adverse Effect.  Each Employee Benefit
Plan that is intended to be qualified under Section 401(a) of the Code has been
determined by the Internal Revenue Service to be so qualified, and each trust
related to such plan has been determined to be exempt under Section 501(a) of
the Code except for such plans that have not yet received determination letters
but for which the remedial amendment period for submitting a determination
letter has not yet expired.  No liability has been incurred by the US
Borrower or any ERISA Affiliate which remains unsatisfied for any taxes or
penalties with respect to any Employee Benefit Plan or any Multiemployer Plan
except for a liability that could not reasonably be expected to have a Material
Adverse Effect;

     

    
      
        
        

      

      
        66

        
          

        

      

      
        
        

      

    

     

    (iii) As of the
Closing Date, no Pension Plan has been terminated, nor has any accumulated
funding deficiency (as defined in Section 412 of the Code) been incurred
(without regard to any waiver granted under Section 412 of the Code), nor has
any funding waiver from the Internal Revenue Service been received or requested
with respect to any Pension Plan, nor has the US Borrower or any ERISA Affiliate
failed to make any contributions or to pay any amounts due and owing as required
by Section 412 of the Code, Section 302 of ERISA or the terms of any Pension
Plan prior to the due dates of such contributions under Section 412 of the Code
or Section 302 of ERISA, nor has there been any event requiring any disclosure
under Section 4041(c)(3)(C) or 4063(a) of ERISA with respect to any Pension
Plan;

     

    (iv) Except
where the failure of any of the following representations to be correct in all
material respects could not reasonably be expected to have a Material Adverse
Effect, neither the US Borrower nor any ERISA Affiliate has: (A) engaged in a
nonexempt prohibited transaction described in Section 406 of the ERISA or
Section 4975 of the Code, (B) incurred any liability to the PBGC which remains
outstanding other than the payment of premiums and there are no premium payments
which are due and unpaid, (C) failed to make a required contribution or payment
to a Multiemployer Plan, or (D) failed to make a required installment or other
required payment under Section 412 of the Code;

     

    (v) No
Termination Event has occurred or is reasonably expected to occur;
and

     

    (vi) Except
where the failure of any of the following representations to be correct in all
material respects could not reasonably be expected to have a Material Adverse
Effect, no proceeding, claim (other than a benefits claim in the ordinary course
of business), lawsuit and/or investigation is existing or, to the best knowledge
of the Borrowers after due inquiry, threatened concerning or involving any (A)
employee welfare benefit plan (as defined in Section 3(1) of ERISA) currently
maintained or contributed to by the US Borrower or any ERISA Affiliate, (B)
Pension Plan or (C) Multiemployer Plan.

     

    (j) Margin
Stock.  Neither the US Borrower nor any Subsidiary thereof is
engaged principally or as one of its activities in the business of extending
credit for the purpose of “purchasing” or “carrying” any “margin stock” (as each
such term is defined or used, directly or indirectly, in Regulation U of the
Board of Governors of the Federal Reserve System).  No part of the
proceeds of any of the Loans or Letters of Credit will be used for purchasing or
carrying margin stock or for any purpose which violates, or which would be
inconsistent with, the provisions of Regulation T, U or X of such Board of
Governors.

     

    (k) Government
Regulation.  Neither the US Borrower nor any Subsidiary thereof
is an “investment company” or a company “controlled” by an “investment company”
(as each such term is defined or used in the Investment Company Act of 1940, as
amended) and neither the US Borrower nor any Subsidiary thereof is, or after
giving effect to any Extension of Credit will be, subject to regulation under
the Interstate Commerce Act, as amended, or any other Applicable Law which
limits its ability to incur or consummate the transactions contemplated
hereby.

     

    (l) Material
Contracts.  Schedule 7.1(l) sets
forth a complete and accurate list of all Material Contracts of the US Borrower
and its Subsidiaries in effect as of the Closing Date not listed on any other
Schedule hereto; other than as set forth in Schedule 7.1(l), each
such Material Contract is, and after giving effect to the consummation of the
transactions contemplated by the Loan Documents will be, in full force and
effect in accordance with the terms thereof.  To the extent requested
by the Administrative Agent, the US Borrower and its Subsidiaries have delivered
to the Administrative Agent a true and complete copy of each Material Contract
required to be listed on Schedule 7.1(l) or
any other Schedule hereto.  Neither the US Borrower nor any Subsidiary
(nor, to the knowledge of the Borrowers, any other party thereto) is in breach
of or in default under any Material Contract in any material
respect.

     

    
      
        
        

      

      
        67

        
          

        

      

      
        
        

      

    

     

    (m) Employee Relations.
Each of the US Borrower and its Subsidiaries has a stable work force in place
and is not, as of the Closing Date, party to any collective bargaining agreement
nor has any labor union been recognized as the representative of its employees
except as set forth on Schedule
7.1(m).  The Borrowers know of no pending, threatened or
contemplated strikes, work stoppage or other collective labor disputes involving
its employees or those of its Subsidiaries.

     

    (n) Burdensome
Provisions.  Neither the US Borrower nor any Subsidiary thereof
is a party to any indenture, agreement, lease or other instrument, or subject to
any corporate or partnership restriction, Governmental Approval or Applicable
Law which is so unusual or burdensome as in the foreseeable future could be
reasonably expected to have a Material Adverse Effect.  The US
Borrower and its Subsidiaries do not presently anticipate that future
expenditures needed to meet the provisions of any statutes, orders, rules or
regulations of a Governmental Authority will be so burdensome as to have a
Material Adverse Effect.  No Subsidiary is party to any agreement or
instrument or otherwise subject to any restriction or encumbrance that restricts
or limits its ability to make dividend payments or other distributions in
respect of its Capital Stock to the US Borrower or any Subsidiary or to transfer
any of its assets or properties to the US Borrower or any other Subsidiary in
each case other than existing under or by reason of the Loan Documents or
Applicable Law.

     

    (o) Financial
Statements.  The (i) audited Consolidated balance sheet of the
US Borrower and its Subsidiaries as of December 31, 2006 and the related audited
statements of income and retained earnings and cash flows for the Fiscal Year
then ended and (ii) unaudited Consolidated balance sheet of the US Borrower and
its Subsidiaries as of September 30, 2007 and related unaudited interim
statements of income and retained earnings, copies of which have been furnished
to the Administrative Agent and each Lender, are complete and correct and fairly
present on a Consolidated basis the assets, liabilities and financial position
of the US Borrower and its Subsidiaries as at such dates, and the results of the
operations and changes of financial position for the periods then ended (other
than customary year-end adjustments and the absence of footnotes for unaudited
financial statements).  All such financial statements, including the
related schedules and notes thereto, have been prepared in accordance with
GAAP.  The US Borrower and its Subsidiaries have no Indebtedness,
obligation or other unusual forward or long-term commitment which is not fairly
reflected in the foregoing financial statements or in the notes
thereto.

     

    (p) No Material Adverse
Change.  Since December 31, 2006, there has been no material
adverse change in the properties, business, operations, or condition (financial
or otherwise) of the US Borrower and its Subsidiaries, taken as a whole, and no
event has occurred or condition arisen that could reasonably be expected to have
a Material Adverse Effect.

     

    
      
        
        

      

      
        68

        
          

        

      

      
        
        

      

    

     

    (q) Solvency.  As
of the Closing Date and after giving effect to each Extension of Credit made
hereunder, the US Borrower and each of its Subsidiaries will be
Solvent.

     

    (r) Titles to
Properties.  Each of the US Borrower and its Subsidiaries has
such title to the real property owned or leased by it as is necessary or
desirable to the conduct of its business and valid and legal title to all of its
personal property and assets, including, but not limited to, those reflected on
the balance sheets of the US Borrower and its Subsidiaries delivered pursuant to
Section 7.1(o),
except those which have been disposed of by the US Borrower or its Subsidiaries
subsequent to the date of such balance sheets pursuant to dispositions in the
ordinary course of business or as otherwise expressly permitted
hereunder.

     

    (s) Liens.  None
of the properties and assets of the US Borrower or any Subsidiary thereof is
subject to any Lien, except Permitted Liens.  No financing statement
under the Uniform Commercial Code of any state or comparable legislation in
other jurisdictions which names the US Borrower or any Subsidiary thereof or any
of their respective trade names or divisions as debtor and which has not been
terminated, has been filed in any state or other jurisdiction and neither the US
Borrower nor any Subsidiary thereof has signed any such financing statement or
any security agreement authorizing any secured party thereunder to file any such
financing statement, except to perfect those Permitted Liens.

     

    (t) Indebtedness and Guaranty
Obligations.  Schedule 7.1(t) is a
complete and correct listing of all Indebtedness and Guaranty Obligations of the
US Borrower and its Subsidiaries as of the Closing Date in excess of
$5,000,000.  The US Borrower and its Subsidiaries have performed and
are in compliance with all of the terms of such Indebtedness and Guaranty
Obligations and all instruments and agreements relating thereto, and no default
or event of default, or event or condition which with notice or lapse of time or
both would constitute such a default or event of default on the part of the US
Borrower or any of its Subsidiaries exists with respect to any such Indebtedness
or Guaranty Obligation.

     

    (u) Litigation. Except
for matters existing on the Closing Date and set forth on Schedule 7.1(u),
there are no actions, suits or proceedings pending nor, to the knowledge of the
Borrowers, threatened against or in any other way relating adversely to or
affecting the US Borrower or any Subsidiary thereof or any of their respective
properties in any court or before any arbitrator of any kind or before or by any
Governmental Authority that (i) purport to affect or pertain to this Agreement
or any other Loan Document, or any of the transactions provided for herein or
therein, or (ii) either individually or in the aggregate, if determined
adversely, could reasonably be expected to have a Material Adverse
Effect.

     

    (v) Absence of
Defaults.  No event has occurred or is continuing which
constitutes a Default or an Event of Default, or which constitutes, or which
with the passage of time or giving of notice or both would constitute, a default
or event of default by the US Borrower or any Subsidiary thereof under any
Material Contract or judgment, decree or order to which the US Borrower or its
Subsidiaries is a party or by which the US Borrower or its Subsidiaries or any
of their respective properties may be bound or which would require the US
Borrower or its Subsidiaries to make any payment thereunder prior to the
scheduled maturity date therefor.

     

    
      
        
        

      

      
        69

        
          

        

      

      
        
        

      

    

     

    (w) Senior Indebtedness
Status.  The Obligations of the US Borrower and each of its
Subsidiaries under this Agreement and each of the other Loan Documents ranks and
shall continue to rank at least senior in priority of payment to all
Subordinated Indebtedness and at least equal to all senior unsecured
Indebtedness of each such Person and is designated as “Senior Indebtedness” (or
the equivalent term) under all instruments and documents, now or in the future,
relating to all Subordinated Indebtedness and all senior unsecured Indebtedness
of such Person.

     

    (x) Accuracy and Completeness of
Information.  All written information, reports and other papers
and data produced by or on behalf of the US Borrower or any Subsidiary thereof
(other than financial projections, which shall be subject to the standard set
forth in Section
8.1(c)) and furnished to the Lenders were, at the time the same were so
furnished, complete and correct in all respects to the extent necessary to give
the recipient a true and accurate knowledge of the subject matter.

     

    (y) OFAC.  None
of the Borrowers, any Subsidiary of the Borrowers or any Affiliate of the
Borrowers: (i) is a Sanctioned Person, (ii) has more than ten percent (10%) of
its assets in Sanctioned Entities, or (iii) derives more than ten percent (10%)
of its operating income from investments in, or transactions with Sanctioned
Persons or Sanctioned Entities.  None of the proceeds of any Loan will
be used, nor have they been used, to fund any operations in, finance any
investments or activities in, or make any payments to, a Sanctioned Person or a
Sanctioned Entity.

     

    (z) Disclosure.  The
Borrowers have disclosed to the Administrative Agent and the Lenders all
agreements, instruments and corporate or other restrictions to which any of the
Credit Parties are subject, and all other matters known to it, that,
individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect.  No financial statement, material report,
material certificate or other material information furnished (whether in writing
or orally) by or on behalf of any of the Credit Parties to the Administrative
Agent or any Lender in connection with the transactions contemplated hereby and
the negotiation of this Agreement or delivered hereunder (as modified or
supplemented by other information so furnished) contains any material
misstatement of fact or omits to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading; provided that, with
respect to projected financial information, pro forma financial information,
estimated financial information and other projected or estimated information,
the Borrowers represent only that such information was prepared in good faith
based upon assumptions believed to be reasonable at the time.

     

    SECTION
7.2 Survival of Representations
and Warranties, Etc.

     

    All
representations and warranties set forth in this Article VII and all
representations and warranties contained in any certificate, or any of the Loan
Documents (including, but not limited to, any such representation or warranty
made in or in connection with any amendment thereto) shall constitute
representations and warranties made under this Agreement.  All
representations and warranties made under this Agreement shall be made or deemed
to be made at and as of the Closing Date (except those that are expressly made
as of a specific date), shall survive the Closing Date and shall not be waived
by the execution and delivery of this Agreement, any investigation made by or on
behalf of the Lenders or any borrowing hereunder.

     

    
      
        
        

      

      
        70

        
          

        

      

      
        
        

      

    

     

    ARTICLE
VIII                                           

    FINANCIAL INFORMATION AND
NOTICES

    Until all the Obligations have been
paid and satisfied in full and the Commitments terminated, unless consent has
been obtained in the manner set forth in Section 15.2, the
Borrowers will furnish or cause to be furnished to the Administrative Agent at
the Administrative Agent’s Office at the address set forth in Section 15.1 and to
the Lenders at their respective addresses as set forth on the Register, or such
other office as may be designated by the Administrative Agent and Lenders from
time to time:

     

    SECTION
8.1 Financial Statements and
Projections

     

     

    (a) Quarterly Financial
Statements.  As soon as practicable and in any event within
forty-five (45) days (or, if earlier, on the date of any required public filing
thereof) after the end of each fiscal quarter of each Fiscal Year, an unaudited
Consolidated balance sheet of the US Borrower and its Subsidiaries as of the
close of such fiscal quarter and unaudited Consolidated statements of income,
retained earnings and cash flows for the fiscal quarter then ended and that
portion of the Fiscal Year then ended, including the notes thereto, all in
reasonable detail setting forth in comparative form the corresponding figures as
of the end of and for the corresponding period in the preceding Fiscal Year and
prepared by the US Borrower in accordance with GAAP and, if applicable,
containing disclosure of the effect on the financial position or results of
operations of any change in the application of accounting principles and
practices during the period, and certified by the chief financial officer of the
US Borrower to present fairly in all material respects the financial condition
of the US Borrower and its Subsidiaries on a Consolidated basis as of their
respective dates and the results of operations of the US Borrower and its
Subsidiaries for the respective periods then ended, subject to normal year end
adjustments and the absence of footnotes.  Delivery by the Borrowers
to the Administrative Agent and the Lenders of the US Borrower’s quarterly
report to the SEC on Form 10-Q with respect to any fiscal quarter, or the
availability of such report on EDGAR Online, within the period specified above
shall be deemed to be compliance by the Borrowers with this Section
8.1(a).

     

    (b) Annual Financial
Statements.  As soon as practicable and in any event within
ninety (90) days (or, if earlier, on the date of any required public filing
thereof) after the end of each Fiscal Year, an audited Consolidated balance
sheet of the US Borrower and its Subsidiaries as of the close of such Fiscal
Year and audited Consolidated statements of income, retained earnings and cash
flows for the Fiscal Year then ended, including the notes thereto, all in
reasonable detail setting forth in comparative form the corresponding figures as
of the end of and for the preceding Fiscal Year and prepared in accordance with
GAAP and, if applicable, containing disclosure of the effect on the financial
position or results of operations of any change in the application of accounting
principles and practices during the year.  Such annual financial
statements shall be audited by Ernst & Young LLP or such other independent
certified public accounting firm acceptable to the Administrative Agent, and
accompanied by a report thereon by such certified public accountants that is not
qualified with respect to scope limitations imposed by the US Borrower or any of
its Subsidiaries or with respect to accounting principles followed by the US
Borrower or any of its Subsidiaries not in accordance with
GAAP.  Delivery by the US Borrower to the Administrative Agent and the
Lenders of the US Borrower’s annual report to the SEC on Form 10-K with respect
to any fiscal year, or the availability of such report on EDGAR Online, within
the period specified above shall be deemed to be compliance by the US Borrower
with this Section
8.1(b).

     

     

    
      
        
        

      

      
        71

        
          

        

      

      
        
        

      

    

     

    (c) Annual Business Plan and
Financial Projections.  As soon as practicable and in any event
within forty-five (45) days prior to the beginning of each Fiscal Year, a
business plan of the US Borrower and its Subsidiaries for the ensuing four (4)
fiscal quarters, such plan to be prepared in accordance with GAAP and to
include, on a quarterly basis, the following:  a quarterly operating
and capital budget, a projected income statement, statement of cash flows and
balance sheet and a report containing management’s discussion and analysis of
such projections, accompanied by a certificate from the chief financial officer
of the US Borrower to the effect that, to the best of such officer’s knowledge,
such projections are good faith estimates (utilizing reasonable assumptions) of
the financial condition and operations of the US Borrower and its Subsidiaries
for such four (4) quarter period.

     

    SECTION
8.2 Officer’s Compliance
Certificate

     

    At each
time financial statements are delivered pursuant to Sections 8.1(a) or
(b) and at such
other times as the Administrative Agent shall reasonably request, an Officer’s
Compliance Certificate.

     

    SECTION
8.3 Accountants’
Certificate

     

    At each
time financial statements are delivered pursuant to Section 8.1(b), a
certificate of the independent public accountants certifying such financial
statements that in connection with their audit, nothing came to their attention
that caused them to believe that the Borrowers failed to comply with the terms,
covenants, provisions or conditions of Articles X and XI, insofar as they
relate to financial and accounting matters or, if such is not the case,
specifying such non-compliance and its nature and period of
existence.

     

    SECTION
8.4 Other
Reports

     

     

    (a) Promptly
after becoming available, copies of each annual report, proxy or financial
statement or other report or communication sent to the stockholders of the US
Borrower generally, and copies of all annual, regular, periodic and special
reports and registration statements which the US Borrower may file or be
required to file with the SEC under Section 13 or 15(d) of the Securities
Exchange Act of 1934, and not otherwise required to be delivered to the
Administrative Agent pursuant hereto; provided that,
delivery of the foregoing shall be deemed to have been made if made available on
EDGAR Online or the website of the US Borrower and the US Borrower shall have
given notice thereof to Administrative Agent;

     

    (b) Promptly
upon receipt thereof, copies of all reports, if any, submitted to the US
Borrower or its board of directors by its independent public accountants in
connection with their auditing function, including, without limitation, any
management report and any management responses thereto; and

     

    
      
        
        

      

      
        72

        
          

        

      

      
        
        

      

    

     

    (c) Such
other information regarding the operations, business affairs and financial
condition of the US Borrower or any of its Subsidiaries as the Administrative
Agent or any Lender may reasonably request.

     

    The Borrowers hereby acknowledge that
(a) the Administrative Agent will make available to the Lenders and the Issuing
Lender materials and/or information provided by or on behalf of the Borrowers
hereunder (collectively, “Borrower Materials”)
by posting the Borrower Materials on SyndTrak Online or another similar
electronic system (the “Platform”) and (b)
certain of the Lenders may be “public-side” Lenders (i.e., Lenders that do
not wish to receive material non-public information with respect to the
Borrowers or their securities) (each, a “Public
Lender”).  The Borrowers hereby agree that they will use
commercially reasonable efforts to identify that portion of the Borrower
Materials that may be distributed to the Public Lenders and that (i) all such
Borrower Materials 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 Borrower Materials “PUBLIC,” the Borrowers
shall be deemed to have authorized the Administrative Agent, the Issuing Lender
and the Lenders to treat such Borrower Materials as not containing any material
non-public information (although it may be sensitive and proprietary) with
respect to the Borrowers or their securities for purposes of United States
federal and state securities laws (provided, however, that to the
extent such Borrower Materials constitute Information, they shall be treated as
set forth in Section
15.12); (iii) all Borrower Materials marked “PUBLIC” are permitted to be
made available through a portion of the Platform designated “Public Investor;”
and (iv) the Administrative Agent shall be entitled to treat any Borrower
Materials that are not marked “PUBLIC” as being suitable only for posting on a
portion of the Platform not designated “Public Investor.”

    

    SECTION
8.5 Notice of Litigation and
Other Matters

     

    Prompt
telephonic and written notice of:

     

    (a) the
commencement of all proceedings and investigations by or before any Governmental
Authority and all actions and proceedings in any court or before any arbitrator
against or involving the US Borrower or any Subsidiary thereof or any of their
respective properties, assets or businesses which individually or in the
aggregate could reasonably be expected to have a Material Adverse
Effect;

     

    (b) any
notice of any violation received by the US Borrower or any Subsidiary thereof
from any Governmental Authority including, without limitation, any notice of
violation of Environmental Laws which in any such case could reasonably be
expected to have a Material Adverse Effect;

     

    (c) any labor
controversy that (i) has resulted in a strike or other work stoppage or slow
down against the US Borrower or any Subsidiary thereof, or (ii) threatens to
result in, a strike or other work stoppage or slow down against the US Borrower
or any Subsidiary thereof which could reasonably be expected to, individually or
in the aggregate with any other labor controversy, work stoppage or slow down,
have a Material Adverse Effect;

     

    (d) any
attachment, judgment, lien, levy or order exceeding $1,000,000 (to the extent
not covered by independent third-party insurance as to which the insurer does
not dispute coverage) that may be assessed against or threatened against the US
Borrower or any Subsidiary thereof;

     

    
      
        
        

      

      
        73

        
          

        

      

      
        
        

      

    

     

    (e) (i) any
Default or Event of Default or (ii) any event which constitutes or which
with the passage of time or giving of notice or both would constitute a default
or event of default under any Material Contract to which the US Borrower or any
of its Subsidiaries is a party or by which the US Borrower or any Subsidiary
thereof or any of their respective properties may be bound;

     

    (f) (i) any
unfavorable determination letter from the Internal Revenue Service regarding the
qualification of an Employee Benefit Plan under Section 401(a) of the Code
(along with a copy thereof), (ii) all notices received by the US Borrower or any
ERISA Affiliate of the PBGC’s intent to terminate any Pension Plan or to have a
trustee appointed to administer any Pension Plan, (iii) all notices received by
the US Borrower or any ERISA Affiliate from a Multiemployer Plan sponsor
concerning the imposition or amount of withdrawal liability pursuant to Section
4202 of ERISA and (iv) the Borrowers obtaining knowledge or reason to know that
the US Borrower or any ERISA Affiliate has filed or intends to file a notice of
intent to terminate any Pension Plan under a distress termination within the
meaning of Section 4041(c) of ERISA; and

     

    (g) any event
which makes any of the representations set forth in Section 7.1
inaccurate in any respect.

     

    Each
notice pursuant to this Section 8.5 shall be
accompanied by a statement of a Responsible Officer of the US Borrower setting
forth details of the occurrence referred to therein and stating what action the
US Borrower or any Subsidiary thereof, as applicable, has taken and proposes to
take with respect thereto.  Each notice pursuant to Section 8.5(e)(i)
shall describe with particularity any and all provisions of this Agreement and
any other Loan Document that have been breached; provided that,
delivery of the foregoing notices shall be deemed to have been made if made
available on EDGAR Online or the website of the US Borrower and the US Borrower
shall have given notice thereof to Administrative Agent.

     

    SECTION
8.6 Accuracy of
Information

     

    All
written information, reports, statements and other papers and data furnished by
or on behalf of the Borrowers to the Administrative Agent or any Lender whether
pursuant to this Article VIII or any
other provision of this Agreement, shall, at the time the same is so furnished,
comply with the representations and warranties set forth in Section
7.1(x).

     

    ARTICLE
IX                                

    AFFIRMATIVE
COVENANTS

    Until all of the Obligations have been
paid and satisfied in full and the Commitments terminated, unless consent has
been obtained in the manner provided for in Section 15.2, the
Borrowers will, and will cause each of their Subsidiaries to:

     

    
      
        
        

      

      
        74

        
          

        

      

      
        
        

      

    

     

    SECTION
9.1 Preservation of Corporate
Existence and Related Matters

     

    Except as
permitted by Section
11.4, preserve and maintain its separate corporate existence and all
rights, franchises, licenses and privileges necessary to the conduct of its
business, and qualify and remain qualified as a foreign corporation and
authorized to do business in each jurisdiction in which the failure to so
qualify could reasonably be expected to have a Material Adverse
Effect.

     

    SECTION
9.2 Maintenance of
Property

     

    Protect
and preserve all properties useful in and material to its business, including
copyrights, patents, trade names, service marks and trademarks; maintain in good
working order and condition, ordinary wear and tear excepted, all buildings,
equipment and other tangible real and personal property; and from time to time
make or cause to be made all repairs, renewals and replacements thereof and
additions to such property necessary for the conduct of its business, so that
the business carried on in connection therewith may be conducted in a
commercially reasonable manner.

     

    SECTION
9.3 Insurance

     

    Maintain
insurance with financially sound and reputable insurance companies against such
risks and in such amounts as are customarily maintained by similar businesses
and as may be required by Applicable Law (including, without limitation, hazard
and business interruption insurance), and on the Closing Date and from time to
time thereafter deliver to the Administrative Agent upon its request a detailed
list of the insurance then in effect, stating the names of the insurance
companies, the amounts and rates of the insurance, the dates of the expiration
thereof and the properties and risks covered thereby.

     

    SECTION
9.4 Accounting Methods and
Financial Records

     

    Maintain
a system of accounting, and keep such books, records and accounts (which shall
be true and complete in all material respects) as may be required or as may be
necessary to permit the preparation of financial statements in accordance with
GAAP and in compliance with the regulations of any Governmental Authority having
jurisdiction over it or any of its properties.

     

    SECTION
9.5 Payment and Performance of
Obligations

     

    Pay and
perform all Obligations under this Agreement and the other Loan Documents, and
pay or perform (a) all taxes, assessments and other governmental charges that
may be levied or assessed upon it or any of its property, and (b) all other
indebtedness, obligations and liabilities in accordance with customary trade
practices; provided, that the US
Borrower or such Subsidiary may contest any item described in clauses (a) or (b)
of this Section in good faith so long as adequate reserves are maintained with
respect thereto in accordance with GAAP.

     

    SECTION
9.6 Compliance With Laws and
Approvals

     

    Observe
and remain in compliance in all material respects with all Applicable Law and
maintain in full force and effect all Governmental Approvals, in each case
applicable to the conduct of its business, except where the failure to so comply
or maintain such Governmental Approval could not reasonably be expected,
individually or in the aggregate, to have a Material Adverse
Effect.

     

    SECTION
9.7 Environmental
Laws

     

    In
addition to and without limiting the generality of Section 9.6,
(a) comply with, and ensure such compliance by all tenants and subtenants
with all applicable Environmental Laws and obtain and comply with and maintain,
and ensure that all tenants and subtenants, if any, obtain and comply with and
maintain, any and all licenses, approvals, notifications, registrations or
permits required by applicable Environmental Laws, except where the failure to
do so could not reasonably be expected, individually or in the aggregate, to
have a Material Adverse Effect, (b) conduct and complete all investigations,
studies, sampling and testing, and all remedial, removal and other actions
required under Environmental Laws, and promptly comply with all lawful orders
and directives of any Governmental Authority regarding Environmental Laws,
except where the failure to conduct or complete such actions, or comply with
such orders or directions, could not reasonably be expected, individually or in
the aggregate, to have a Material Adverse Effect, and (c) defend, indemnify and
hold harmless the Administrative Agent and the Lenders, and their respective
parents, Subsidiaries, Affiliates, employees, agents, officers and directors,
from and against any claims, demands, penalties, fines, liabilities,
settlements, damages, costs and expenses of whatever kind or nature known or
unknown, contingent or otherwise, arising out of, or in any way relating to the
presence of Hazardous Materials, or the violation of, noncompliance with or
liability under any Environmental Laws applicable to the operations of the US
Borrower or any such Subsidiary, or any orders, requirements or demands of
Governmental Authorities related thereto, including, without limitation,
reasonable attorney’s and consultant’s fees, investigation and laboratory fees,
response costs, court costs and litigation expenses, except to the extent that
any of the foregoing directly result from the gross negligence or willful
misconduct of the party seeking indemnification therefor, as determined by a
court of competent jurisdiction by final nonappealable judgment.

     

    
      
        
        

      

      
        75

        
          

        

      

      
        
        

      

    

     

    SECTION
9.8 Compliance with
ERISA

     

    In
addition to and without limiting the generality of Section 9.6, (a)
except where the failure to so comply could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect, (i) comply
with all material applicable provisions of ERISA and the regulations and
published interpretations thereunder with respect to all Employee Benefit Plans,
(ii) not take any action or fail to take action the result of which could be a
liability to the PBGC or to a Multiemployer Plan, (iii) not participate in any
prohibited transaction that could result in any civil penalty under ERISA or tax
under the Code and (iv) operate each Employee Benefit Plan in such a manner that
will not incur any tax liability under Section 4980B of the Code or any
liability to any qualified beneficiary as defined in Section 4980B of the Code
and (b) furnish to the Administrative Agent upon the Administrative Agent’s
request such additional information about any Employee Benefit Plan as may be
reasonably requested by the Administrative Agent.

     

    SECTION
9.9 Compliance With
Agreements

     

    Comply in
all respects with each term, condition and provision of all leases, agreements
and other instruments entered into in the conduct of its business including,
without limitation, any Material Contract; provided, that the
Borrowers or any Subsidiary thereof may contest any such lease, agreement or
other instrument in good faith through applicable proceedings so long as
adequate reserves are maintained in accordance with GAAP.

     

    SECTION
9.10 Visits and
Inspections

     

    Permit
representatives of the Administrative Agent or any Lender, from time to time, to
visit and inspect its properties; inspect, audit and make extracts from its
books, records and files, including, but not limited to, management letters
prepared by independent accountants; and discuss with its principal officers,
and its independent accountants, its business, assets, liabilities, financial
condition, results of operations and business prospects; provided that so long
as no Default or Event of Default has occurred and is continuing, the
Administrative Agent or applicable Lender shall give reasonable prior to notice
to the US Borrower of its intention to visit and inspect the properties and
records pursuant to this Section.

     

    
      
        
        

      

      
        76

        
          

        

      

      
        
        

      

    

     

    SECTION
9.11 Additional
Subsidiaries

     

    Notify
the Administrative Agent of the creation or acquisition of any Domestic
Subsidiary and promptly thereafter (and in any event within thirty (30) days),
cause such Person to (a) become a Subsidiary Guarantor by delivering to the
Administrative Agent a duly executed supplement to the Subsidiary Guaranty
Agreement or such other document as the Administrative Agent shall deem
appropriate for such purpose, (b) deliver to the Administrative Agent such
documents and certificates referred to in Section 6.2 as may be
reasonably requested by the Administrative Agent, (c) deliver to the
Administrative Agent such updated Schedules to the Loan Documents as requested
by the Administrative Agent with respect to such Person, and (d) deliver to the
Administrative Agent such other documents as may be reasonably requested by the
Administrative Agent, all in form, content and scope reasonably satisfactory to
the Administrative Agent.

     

    SECTION
9.12 Use of
Proceeds

     

     

    (a) The
Borrowers shall use the proceeds of the Extensions of Credit under the Revolving
Credit Facility (i) to refinance the existing indebtedness of the Borrowers
under the Existing Credit Agreement (other than the Existing Letters of Credit
and the Term Loans), and (ii) for general corporate purposes of the
Borrowers and their Subsidiaries (including, without limitation, working
capital, capital expenditures in the ordinary course of business, Permitted
Acquisitions, dividends and stock repurchases) and (iii) to pay fees and
expenses related to the Credit Facility.

     

    (b) The US
Borrower shall use the proceeds of the Term Loans for working capital and
general corporate requirements of the US Borrower and its Subsidiaries,
including, but not limited to, Permitted Acquisitions, dividends, stock
repurchases and the payment of certain fees and expenses incurred in connection
with the Term Loan Facility.

     

    SECTION
9.13 Further
Assurances

     

    Make,
execute and deliver all such additional and further acts, things, deeds and
instruments as the Administrative Agent or the Required Lenders (through the
Administrative Agent) may reasonably require to document and consummate the
transactions contemplated hereby and to vest completely in and insure the
Administrative Agent and the Lenders their respective rights under this
Agreement, the Letters of Credit and the other Loan Documents.

     

    ARTICLE
X                                

    FINANCIAL
COVENANTS

    Until all of the Obligations have been
paid and satisfied in full and the Commitments terminated, unless consent has
been obtained in the manner set forth in Section 15.2, the US
Borrower and its Subsidiaries on a Consolidated basis will not:

     

    SECTION
10.1 Average Total Leverage
Ratio

     

    As of any
fiscal quarter end, permit the Average Total Leverage Ratio to be greater than
or equal to 3.25 to 1.00.

     

    
      
        
        

      

      
        77

        
          

        

      

      
        
        

      

    

     

    SECTION
10.2 Fixed Charge Coverage
Ratio

     

    As of any
fiscal quarter end, permit the ratio of (a) EBITDAR for the period of four (4)
consecutive fiscal quarters ending on or immediately prior to such date to (b)
the sum of (i) Interest Expense paid or payable in cash for the period of four
(4) consecutive fiscal quarters ending on or immediately prior to such date
plus (ii)
Rental Expense for the period of four (4) consecutive fiscal quarters ending on
or immediately prior to such date to be less than 2.25 to 1.00.

     

    ARTICLE
XI                                

    NEGATIVE
COVENANTS

    Until all of the Obligations have been
paid and satisfied in full and the Commitments terminated, unless consent has
been obtained in the manner set forth in Section 15.2, the
Borrowers have not and will not and will not permit any of their Subsidiaries
to:

     

    SECTION
11.1 Limitations on
Indebtedness

     

    Create,
incur, assume or suffer to exist any Indebtedness except:

     

    (a) the
Obligations (excluding Hedging Obligations permitted pursuant to Section
11.1(b));

     

    (b) Indebtedness
incurred in connection with a Hedging Agreement, in each case, incurred in the
ordinary course of business and not for speculative purposes;

     

    (c) Indebtedness
existing on the Closing Date and not otherwise permitted under this Section, as
set forth on Schedule
7.1(t), and the renewal, refinancing, extension and replacement (but not
the increase in the aggregate principal amount) thereof;

     

    (d) Indebtedness
of the US Borrower and its Subsidiaries incurred in connection with Capital
Leases in an aggregate amount not to exceed $10,000,000 on any date of
determination;

     

    (e) purchase
money Indebtedness of the US Borrower and its Subsidiaries in an aggregate
amount not to exceed $10,000,000 on any date of determination;

     

    (f) Guaranty
Obligations in favor of the Administrative Agent for the benefit of the
Administrative Agent and the Lenders;

     

    (g) Guaranty
Obligations with respect to Indebtedness permitted pursuant to subsections (a)
through (e) or subsection (p) of this Section;

     

    (h) Indebtedness
owed (i) by the US Borrower to any Subsidiary Guarantor, (ii) by any Subsidiary
Guarantor to the US Borrower, (iii) by any Subsidiary Guarantor to any other
Subsidiary Guarantor, or (iv) by any Subsidiary that is not a Subsidiary
Guarantor to any other Subsidiary that is not a Subsidiary
Guarantor;

     

    (i) so long
as no Default or Event of Default has occurred and is continuing or would result
therefrom, Indebtedness owed by the US Borrower and any Subsidiary Guarantor to
any Foreign Subsidiary or Indebtedness owed by any Foreign Subsidiary to the US
Borrower and any Subsidiary Guarantor which, together with the Permitted
Acquisition Consideration payable in connection with all Permitted Foreign
Acquisitions and the total amount of any transactions permitted under Sections 11.3(i) and 11.5(f), does not
exceed $60,000,000 in the aggregate during the period from the Closing Date
through and including the later to occur of the Revolving Credit Maturity Date
or the Term Loan Maturity Date;

     

    
      
        
        

      

      
        78

        
          

        

      

      
        
        

      

    

     

    (j) Subordinated
Indebtedness; provided that in the
case of each issuance of Subordinated Indebtedness, (i) no Default or Event of
Default shall have occurred and be continuing or would be caused by the issuance
of such Subordinated Indebtedness and (ii) the Administrative Agent shall have
received satisfactory written evidence that the US Borrower and its Subsidiaries
would be in compliance with all covenants contained in this Agreement on a pro forma basis after
giving effect to the issuance of any such Subordinated
Indebtedness;

     

    (k) additional
Indebtedness of the US Borrower and the Subsidiary Guarantors not otherwise
permitted pursuant to this Section in an aggregate amount outstanding not to
exceed $5,000,000;

     

    (l) so long
as no Default or Event of Default has occurred and is continuing or would occur
as a result therefrom, Indebtedness arising in connection with an Accounts
Securitization;

     

    (m) endorsements
of negotiable instruments for deposit or collection in the ordinary course of
business;

     

    (n) unsecured
Indebtedness in respect of performance bonds, worker’s compensation claims,
surety or appeal bonds and payment obligations in connection with self insurance
or similar obligations, in each case to the extent incurred in the ordinary
course of business;

     

    (o) Guaranty
Obligations consisting of an unsecured limited guaranty of certain of the
obligations of Northpark Corporate Center, L.L.C. pursuant to that certain
$9,400,000 loan agreement by and between Northpark Corporate Center, L.L.C. and
Wells Fargo Bank, National Association; provided that such
Guaranty Obligations shall be (i) in an aggregate principal amount not to exceed
$9,400,000 and (ii) evidenced by a guaranty agreement in form and substance
satisfactory to the Administrative Agent; and

     

    (p) (i)
Indebtedness in connection with the February 2007 Notes and (ii) any refinance
of the February 2007 Notes or any additional unsecured Indebtedness issued
under, or by a supplement to, the February 2007 Note Purchase Agreement or any
similar note purchase agreement or other debt instrument; provided that such
refinancing or additional unsecured Indebtedness shall be on terms and
conditions that are, taken as a whole, (A) consistent with the then-current
market terms and conditions of such type of unsecured debt (as reasonably
determined in good faith by the board of directors of the US Borrower) and (B)
no less favorable to the Lenders than the terms of the February 2007 Notes (as
reasonably determined by the Administrative Agent); provided further that
with respect to any Indebtedness incurred pursuant to clause (ii), (1) no
Default or Event of Default shall have occurred and be continuing or would be
caused by the issuance thereof, (2) the Administrative Agent shall have received
satisfactory written evidence that the US Borrower and its Subsidiaries would be
in compliance with all covenants in this Agreement on a pro forma basis after
giving effect to the issuance thereof, and (3) the maturity date of such senior
Indebtedness shall be no earlier than the Indebtedness (if any) being refinanced
and in any event shall be at least six (6) months after each of the Revolving
Credit Maturity Date and the Term Loan Maturity Date;

     

    
      
        
        

      

      
        79

        
          

        

      

      
        
        

      

    

     

    provided, that no
agreement or instrument with respect to Indebtedness permitted to be incurred by
this Section shall restrict, limit or otherwise encumber (by covenant or
otherwise) the ability of any Subsidiary of any Borrower to make any payment to
such Borrower or any of its Subsidiaries (in the form of dividends, intercompany
advances or otherwise) for the purpose of enabling such Borrower to pay the
Obligations.

     

    SECTION
11.2 Limitations on
Liens

     

    Create,
incur, assume or suffer to exist, any Lien on or with respect to any of its
assets or properties (including, without limitation, shares of Capital Stock),
real or personal, whether now owned or hereafter acquired, except:

     

    (a) Liens for
taxes, assessments and other governmental charges or levies (excluding any Lien
imposed pursuant to any of the provisions of ERISA or Environmental Laws) not
yet due or as to which the period of grace (not to exceed thirty (30) days), if
any, related thereto has not expired or which are being contested in good faith
and by appropriate proceedings if adequate reserves are maintained to the extent
required by GAAP;

     

    (b) the
claims of materialmen, mechanics, carriers, warehousemen, processors or
landlords for labor, materials, supplies or rentals incurred in the ordinary
course of business, (i) which are not overdue for a period of more than thirty
(30) days or (ii) which are being contested in good faith and by appropriate
proceedings if adequate reserves are maintained to the extent required by
GAAP;

     

    (c) Liens
consisting of deposits or pledges made in the ordinary course of business in
connection with, or to secure payment of, obligations under workers’
compensation, unemployment insurance or similar legislation;

     

    (d) Liens
constituting encumbrances in the nature of zoning restrictions, easements and
rights or restrictions of record on the use of real property as are of a nature
generally existing with respect to properties of a similar character, which in
the aggregate are not substantial in amount and which do not, in any case,
materially detract from the value of such property or materially impair the use
thereof in the ordinary conduct of business;

     

    (e) Liens
securing the Obligations;

     

    (f) Liens not
otherwise permitted hereunder securing obligations not at any time exceeding in
the aggregate $5,000,000;

     

    (g) (i) Liens
not otherwise permitted by this Section and in existence on the Closing Date and
described on Schedule
11.2 and (ii) Liens incurred in connection with any refinancing,
refunding, renewal or extension of Indebtedness pursuant to Section 11.1(c);
provided that
such Liens (A) were not created in contemplation of such refinancing, refunding,
renewal or extension and (B) do not extend to cover any other property or assets
of the Borrowers and their Subsidiaries;

     

    
      
        
        

      

      
        80

        
          

        

      

      
        
        

      

    

     

    (h) Liens
securing Indebtedness permitted under Sections 11.1(d) and
(e); provided that (i)
such Liens shall be created substantially simultaneously with the acquisition or
lease of the related asset, (ii) such Liens do not at any time encumber any
property other than the property financed by such Indebtedness, (iii) the amount
of Indebtedness secured thereby is not increased and (iv) the principal amount
of Indebtedness secured by any such Lien shall at no time exceed one hundred
percent (100%) of the original purchase price or lease payment amount of such
property at the time it was acquired;

     

    (i) Liens
incurred in connection with any Accounts Securitization (which Liens shall
attach solely to the Transferred Assets sold or transferred in connection with
such Accounts Securitization); and

     

    (j) Liens
securing Indebtedness permitted under Section
11.1(k).

     

    SECTION
11.3 Limitations on Loans,
Advances, Investments and Acquisitions

     

    Purchase,
own, invest in or otherwise acquire, directly or indirectly, any Capital Stock,
interests in any partnership or joint venture (including, without limitation,
the creation or capitalization of any Subsidiary), evidence of Indebtedness or
other obligation or security, substantially all or a portion of the business or
assets of any other Person or any other investment or interest whatsoever in any
other Person, or make or permit to exist, directly or indirectly, any loans,
advances or extensions of credit to, or any investment in cash or by delivery of
property in, any Person except:

     

    (a) (i)
investments existing on the Closing Date in Subsidiaries, and (ii) the other
loans, advances and investments existing on the Closing Date which are described
on Schedule
11.3;

     

    (b) investments
in (i) marketable direct obligations issued or unconditionally guaranteed
by the United States or any agency thereof maturing within one hundred twenty
(120) days from the date of acquisition thereof, (ii) commercial paper
maturing no more than one hundred twenty (120) days from the date of creation
thereof and currently having the highest rating obtainable from either
Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc. or Moody’s Investors Service, Inc., (iii) certificates of
deposit maturing no more than one hundred twenty (120) days from the date of
creation thereof issued by commercial banks incorporated under the laws of the
United States, each having combined capital, surplus and undivided profits of
not less than $500,000,000 and having a rating of “A” or better by a nationally
recognized rating agency; provided, that the
aggregate amount invested in such certificates of deposit shall not at any time
exceed $5,000,000 for any one such certificate of deposit and $10,000,000 for
any one such bank, (iv) time deposits maturing no more than thirty (30)
days from the date of creation thereof with commercial banks or savings banks or
savings and loan associations each having membership either in the FDIC or the
deposits of which are insured by the FDIC and in amounts not exceeding the
maximum amounts of insurance thereunder, (v) demand deposit accounts maintained
in the ordinary course of business or (vi) any Eurodollar deposits maturing no
more than seven (7) days from the date of creation thereof issued by a Lender,
an Affiliate of a Lender or commercial
banks, each having combined capital, surplus and undivided profits of not less
than $500,000,000 in an aggregate amount invested at any one time not to exceed
$10,000,000;

     

    
      
        
        

      

      
        81

        
          

        

      

      
        
        

      

    

     

    (c) investments
by the US Borrower or any Subsidiary thereof in the form of acquisitions of all
or substantially all of the business or a line of business (whether by the
acquisition of Capital Stock, assets or any combination thereof) of any other
Person if each such acquisition meets all of the following requirements (such
acquisition being referred to herein as a “Permitted Domestic
Acquisition”):

     

    (i) the
Person to be acquired shall be organized under the laws of the United States of
America, or the assets to be acquired shall be located in the continental United
States of America, and such Person shall be engaged in a business, or such
assets shall be used in a business, permitted pursuant to Section
11.12;

     

    (ii) the US
Borrower or any Subsidiary (including any entity being acquired that becomes a
Subsidiary) shall be the surviving Person and no Change of Control shall have
been effected thereby;

     

    (iii) the
Person to be acquired shall not be subject to any material pending litigation
which could reasonably be expected to have a Material Adverse
Effect;

     

    (iv) prior to
the closing of such acquisition, the acquisition is approved by the board of
directors (or a majority of the holders of the Capital Stock of such Person) of
the Person whose assets or Capital Stock are being acquired pursuant to such
acquisition;

     

    (v) no
Default or Event of Default shall have occurred and be continuing both before
and after giving effect to such proposed acquisition;

     

    (vi) if the
aggregate amount of Permitted Acquisition Consideration payable in cash with
respect to such proposed acquisition or series of related acquisitions exceeds
$50,000,000, the US Borrower shall have (A) demonstrated to the Administrative
Agent pro forma compliance (as
of the date of the proposed acquisition and after giving effect thereto and any
Extensions of Credit made or to be made in connection therewith) with each
covenant contained in, and in the manner set forth in, Article X, (B)
delivered to the Administrative Agent evidence of the approval referred to in
clause (iv) above, and (C) delivered written notice of such proposed acquisition
to the Administrative Agent and the Lenders, which notice shall include the
proposed closing date of such proposed acquisition and a description of the
acquisition in the form customarily prepared by the US Borrower, not less than
five (5) Business Days prior to such proposed closing
date;  and

     

    (vii) the US
Borrower shall have delivered to the Administrative Agent such documents
reasonably requested by the Administrative Agent or the Required Lenders
(through the Administrative Agent) pursuant to Section 9.11 to be
delivered at the time required pursuant to Section
9.11.

     

    (d) investments
by the US Borrower or any Subsidiary thereof in the form of acquisitions of all
or substantially all of the business or a line of business (whether by the
acquisition of Capital Stock, assets or any combination thereof) of any other
Person if each such acquisition meets all of the following requirements (such
acquisition being referred to herein as a “Permitted Foreign
Acquisition”):

     

    
      
        
        

      

      
        82

        
          

        

      

      
        
        

      

    

     

    (i) the
Person to be acquired shall be organized under the laws of a jurisdiction other
than the United States of America, or the assets to be acquired shall be located
outside of the continental United States of America, and such Person shall be
engaged in a business, or such assets shall be used in a business, permitted
pursuant to Section
11.12;

     

    (ii) the US
Borrower or any Subsidiary (including any entity being acquired that becomes a
Subsidiary) shall be the surviving Person and no Change of Control shall have
been effected thereby;

     

    (iii) the
Person to be acquired shall not be subject to any material pending litigation
which could reasonably be expected to have a Material Adverse
Effect;

     

    (iv) prior to
the closing of such acquisition, the acquisition is approved by the board of
directors (or a majority of the holders of the Capital Stock of such Person) of
the Person whose assets or Capital Stock are being acquired pursuant to such
acquisition;

     

    (v) no
Default or Event of Default shall have occurred and be continuing both before
and after giving effect to such proposed acquisition;

     

    (vi) the
aggregate amount of Permitted Acquisition Consideration payable (A) with respect
to any Permitted Foreign Acquisition or series of related Permitted Foreign
Acquisitions does not exceed $35,000,000 in cash and (B) with respect to all
Permitted Foreign Acquisitions and the total amount of any transactions
permitted under Sections 11.1(i), 11.3(i) and 11.5(f) does not
exceed $60,000,000 in the aggregate during the period from the Closing Date
through and including the later to occur of the Revolving Credit Maturity Date
or the Term Loan Maturity Date; and

     

    (vii) if the
aggregate amount of Permitted Acquisition Consideration payable in cash with
respect to such proposed acquisition or series of related acquisitions exceeds
$20,000,000, the US Borrower shall have (A) demonstrated to the Administrative
Agent pro forma compliance (as
of the date of the proposed acquisition and after giving effect thereto and any
Extensions of Credit made or to be made in connection therewith) with each
covenant contained in, and in the manner set forth in, Article X, (B)
delivered to the Administrative Agent evidence of the approval referred to in
clause (iv) above, and (C) delivered written notice of such proposed acquisition
to the Administrative Agent and the Lenders, which notice shall include the
proposed closing date of such proposed acquisition and a description of the
acquisition in the form customarily prepared by the US Borrower, not less than
five (5) Business Days prior to such proposed closing date.

     

    (e) Hedging
Agreements permitted pursuant to Section
11.1;

     

    (f) purchases
of assets in the ordinary course of business;

     

    (g) investments
in the form of loans and advances to employees in the ordinary course of
business, which, in the aggregate, do not exceed at any time
$500,000;

     

    (h) intercompany
Indebtedness permitted pursuant to Section
11.1(h);

     

    
      
        
        

      

      
        83

        
          

        

      

      
        
        

      

    

     

    (i) the
creation of new Foreign Subsidiaries or additional investments in existing
Foreign Subsidiaries, the investment in which, together with the Permitted
Acquisition Consideration payable in connection with all Permitted Foreign
Acquisitions and the total amount of any transactions permitted under Sections 11.1(i) and 11.5(f), does not
exceed $60,000,000 in the aggregate during the period from the Closing Date
through and including the later to occur of the Revolving Credit Maturity Date
or the Term Loan Maturity Date;

     

    (j) the
creation of Domestic Subsidiaries after the Closing Date so long as (i) each
such Domestic Subsidiary shall comply with Section 9.11 and (ii)
the creation of such Domestic Subsidiary is otherwise made in accordance with
the terms and conditions of this Agreement (including, without limitation, this
Section
11.3);

     

    (k) equity
investments (i) by the US Borrower in any Subsidiary Guarantor, (ii) by any
Subsidiary in the US Borrower, (iii) by any Subsidiary in any Subsidiary
Guarantor or (iv) by any Subsidiary that is not a Subsidiary Guarantor in any
other Subsidiary that is not a Subsidiary Guarantor;

     

    (i) so long
as no Default or Event of Default has occurred or would result therefrom, the
additional investment by the US Borrower and its Subsidiaries in Latham
International, Inc. in an aggregate amount not to exceed $20,000,000 during the
period from the Closing Date through and including the later to occur of the
Revolving Credit Maturity Date or the Term Loan Maturity Date, provided that the US
Borrower’s and its Subsidiaries’ interest in Latham International, Inc. shall
not at any time exceed forty percent (40%) of the Capital Stock of Latham
International, Inc.; and

     

    (l) other
additional domestic investments not otherwise permitted pursuant to this Section
not exceeding $7,500,000 in the aggregate in any
Fiscal Year.

     

    SECTION
11.4 Limitations on Mergers and
Liquidation

     

    Merge,
consolidate, amalgamate or enter into any similar combination with any other
Person or liquidate, wind-up or dissolve itself (or suffer any liquidation or
dissolution) except:

     

    (a) any
Wholly-Owned Subsidiary of the US Borrower may be merged or consolidated with or
into the US Borrower (provided that the US
Borrower shall be the continuing or surviving Person) or with or into any
Subsidiary Guarantor (provided that the
Subsidiary Guarantor shall be the continuing or surviving Person);

     

    (b) any
Wholly Owned Subsidiary may sell, lease, transfer or otherwise dispose of any or
all of its assets (upon voluntary liquidation or otherwise) to the US Borrower
or any other Wholly-Owned Subsidiary; provided that if the
transferor in such a transaction is a Subsidiary Guarantor, then the transferee
must either be the US Borrower or a Subsidiary Guarantor;

     

    (c) any
Wholly-Owned Subsidiary of the US Borrower may merge into the Person such
Wholly-Owned Subsidiary was formed to acquire in connection with a Permitted
Acquisition; and

     

    (d) any
Subsidiary of the US Borrower may wind-up or dissolve into the US Borrower or
any Wholly-Owned Subsidiary of the US Borrower (provided that if the
Subsidiary subject to such winding up or dissolution is a Subsidiary Guarantor,
such Subsidiary shall wind-up or dissolve into the US Borrower or another
Subsidiary Guarantor).

     

    
      
        
        

      

      
        84

        
          

        

      

      
        
        

      

    

     

    SECTION
11.5 Limitations on Sale of
Assets

     

    Convey,
sell, lease, assign, transfer or otherwise dispose of any of its property,
business or assets (including, without limitation, the sale of any receivables
and leasehold interests and any sale-leaseback or similar transaction), whether
now owned or hereafter acquired except:

     

    (a) the sale
of inventory in the ordinary course of business;

     

    (b) the sale
of obsolete assets no longer used or usable in the business of the  US
Borrower or any of its Subsidiaries;

     

    (c) the
transfer of assets pursuant to Section
11.4;

     

    (d) the
Borrowers or any of their Subsidiaries may write-off, discount, sell or
otherwise dispose of defaulted or past due receivables and similar obligations
in the ordinary course of business and not as part of an accounts receivable
financing transaction;

     

    (e) the
disposition of any Hedging Agreement;

     

    (f) sales of
assets to Foreign Subsidiaries the fair market value with respect to which,
together with the Permitted Acquisition Consideration payable in connection with
all Permitted Foreign Acquisitions and the total amount of any transactions
permitted under Sections 11.1(i) and 11.3(i), does not
exceed $60,000,000 in the aggregate during the period from the Closing Date
through and including the later to occur of the Revolving Credit Maturity Date
or the Term Loan Maturity Date;

     

    (g) so long
as no Default or Event of Default has occurred and is continuing or would occur
as a result therefrom, transfers of an interest in the Transferred Assets in
connection with an Account Securitization; and

     

    (h) additional
dispositions of assets not otherwise permitted pursuant to this Section the fair
market value with respect to which does not exceed $7,500,000 in the aggregate in any
Fiscal Year.

     

    SECTION
11.6 Limitations on Dividends and
Distributions

     

    Declare
or pay any dividends upon any of its Capital Stock; purchase, redeem, retire or
otherwise acquire, directly or indirectly, any shares of its Capital Stock, or
make any distribution of cash, property or assets among the holders of shares of
its Capital Stock, or make any change in its capital structure which such change
in its capital structure could reasonably be expected to have a Material Adverse
Effect; provided
that:

     

    (a) the US
Borrower or any Subsidiary may pay dividends in shares of its own Capital
Stock;

     

    (b) so long
as no Default or Event of Default has occurred and is continuing or would result
therefrom, the US Borrower may declare and pay dividends in a manner consistent
with the past practice of the US Borrower in an amount reasonably determined by
the board of directors of the US Borrower; provided that such
amount shall not exceed fifty percent (50%) of Net Income for the preceding
Fiscal Year;

     

    
      
        
        

      

      
        85

        
          

        

      

      
        
        

      

    

     

    (c) any
Subsidiary may declare and pay dividends of any type (cash or non-cash) to the
US Borrower or any other Wholly-Owned Subsidiary, provided that if the
Subsidiary paying the dividend is a Subsidiary Guarantor then the recipient of
the dividend must be either the US Borrower or another Subsidiary Guarantor;
and

     

    (d) the US
Borrower may repurchase shares of its Capital Stock, so long as:

     

    (i) no
Default or Event of Default has occurred and is continuing at the time of such
repurchase or would result therefrom; and

     

    (ii) the US
Borrower and its Subsidiaries shall have demonstrated to the Administrative
Agent that the Average Total Leverage Ratio (as of the date of the proposed
share repurchase, based on the most recent financial statements delivered to the
Administrative Agent pursuant to Section 8.1, and, on
a pro forma basis, after
giving effect to such share repurchase and any Indebtedness incurred in
connection therewith) is less than 3.00 to 1.00.

     

    SECTION
11.7 Limitations on Exchange and
Issuance of Capital Stock

     

    Issue,
sell or otherwise dispose of any class or series of Capital Stock that, by its
terms or by the terms of any security into which it is convertible or
exchangeable, is, or upon the happening of an event or passage of time would be,
(a) convertible or exchangeable into Indebtedness or (b) required to be redeemed
or repurchased, including at the option of the holder, in whole or in part, or
has, or upon the happening of an event or passage of time would have, a
redemption or similar payment due.

     

    SECTION
11.8 Transactions with
Affiliates

     

    Except
for transactions permitted by Sections 11.3, 11.6 and 11.7, directly or
indirectly (a) make any loan or advance to, or purchase or assume any note or
other obligation to or from, any of its officers, directors, shareholders or
other Affiliates, or to or from any member of the immediate family of any of its
officers, directors, shareholders or other Affiliates, or subcontract any
operations to any of its Affiliates or (b) enter into, or be a party to, any
other transaction not described in clause (a) above with any of its Affiliates,
except pursuant to the reasonable requirements of its business and upon fair and
reasonable terms that are no less favorable to it than it would obtain in a
comparable arm’s length transaction with a Person not its
Affiliate.

     

    SECTION
11.9 Certain Accounting
Changes;
Organizational Documents

     

    (a)
Change its Fiscal Year end, or make any change in its accounting treatment and
reporting practices except as required by GAAP or (b) amend, modify or change
its articles of incorporation (or corporate charter or other similar
organizational documents) or amend, modify or change its bylaws (or other
similar documents) in any manner adverse in any respect to the rights or
interests of the Lenders.

     

    SECTION
11.10 Amendments; Payments and
Prepayments of Certain Indebtedness.

     

    
      
        
        

      

      
        86

        
          

        

      

      
        
        

      

    

     

    (a) Amend or
modify (or permit the modification or amendment of) any of the terms or
provisions of any Subordinated Indebtedness.

     

    (b) Amend or
modify (or permit the modification or amendment of) any of the terms or
provisions of any Indebtedness permitted pursuant to Section 11.1(p)
of this Agreement in any respect which would materially adversely affect the
rights or interests of the Administrative Agent or any Lender
hereunder.

     

    (c) Cancel,
forgive, make any payment or prepayment on, or redeem or acquire for value
(including, without limitation, (i) by way of depositing with any trustee with
respect thereto money or securities before due for the purpose of paying when
due and (ii) subject to clause (C) below, at the maturity thereof) any
Subordinated Indebtedness or any Indebtedness permitted pursuant to Section 11.1(p) of
this Agreement, except:

     

    (A)           refinancings,
refundings, renewals, extensions or exchange of any such Indebtedness to the
extent permitted by Section 11.1(j) (in
the case of Subordinated Indebtedness) or Section 11.1(p) (in
the case of Indebtedness permitted by Section
11.1(p));

     

    (B)           so
long as no Default or Event of Default has occurred or would result therefrom
regularly scheduled payments of interest on Indebtedness issued pursuant to
Section
11.1(p); or

     

    (C)           repayments
of Indebtedness issued pursuant to Section 11.1(p) at
the stated maturity thereof, so long as:

     

    (1)           no
Default or Event of Default shall have occurred and be continuing at the time of
such repayment or would result therefrom;

     

    (2)           the
US Borrower and its Subsidiaries shall have demonstrated to the Administrative
Agent that the Average Total Leverage Ratio (as of the date of such repayment,
based on the most recent financial statements delivered to the Administrative
Agent pursuant to Section 8.1), and, on
a pro forma basis, after
giving effect to such repayment and any Indebtedness incurred in connection
therewith) is less than 3.00 to 1.00.

     

    SECTION
11.11 Restrictive
Agreements

     

     

    (a) Enter
into any Indebtedness which contains any negative pledge on assets or any
covenants more restrictive than the provisions of Articles IX, X and XI hereof, or which
restricts, limits or otherwise encumbers its ability to incur Liens on or with
respect to any of its assets or properties other than the assets or properties
securing such Indebtedness (other than (i) Indebtedness permitted pursuant to
Section 11.1(p)
of this Agreement (provided that any
such negative pledge, restriction, limitation or encumbrance is no more
restrictive than the February 2007 Notes) and (ii) Superior Commerce solely in
connection with an Accounts Securitization).

     

    
      
        
        

      

      
        87

        
          

        

      

      
        
        

      

    

     

    (b) Enter
into or permit to exist any agreement which impairs or limits the ability of any
Subsidiary of a Borrower (other than Superior Commerce solely in connection with
an Accounts Securitization) to pay dividends to such Borrower.

     

    SECTION
11.12 Nature of
Business

     

    Substantively
alter in any material respect the character or conduct of the business conducted
by the US Borrower and its Subsidiaries as of the Closing Date.

     

    ARTICLE
XII                                           

    UNCONDITIONAL US BORROWER
GUARANTY

    SECTION
12.1 Guaranty of
Obligations

     

    The US
Borrower hereby unconditionally guarantees to the Administrative Agent for the
ratable benefit of the Administrative Agent and the Lenders, and their
respective successors, endorsees, transferees and assigns, the prompt payment of
all Obligations of the Canadian Borrower, whether primary or secondary (whether
by way of endorsement or otherwise), whether now existing or hereafter arising,
whether or not from time to time reduced or extinguished (except by payment
thereof) or hereafter increased or incurred, whether or not recovery may be or
hereafter become barred by the statute of limitations, whether enforceable or
unenforceable as against the Canadian Borrower, whether or not discharged,
stayed or otherwise affected by any bankruptcy, insolvency or other similar law
or proceeding, whether created directly with the Administrative Agent or any
Lender or acquired by the Administrative Agent or any Lender through assignment,
endorsement or otherwise, whether matured or unmatured, whether joint or
several, as and when the same become due and payable (whether at maturity or
earlier, by reason of acceleration, mandatory repayment or otherwise), in
accordance with the terms of any such instruments evidencing any such
obligations, including all renewals, extensions or modifications thereof (all
Obligations of the Canadian Borrower to the Administrative Agent and the
Lenders, including all of the foregoing, being hereinafter collectively referred
to as the “US Borrower
Guaranteed Obligations”).

     

    SECTION
12.2 Nature of
Guaranty

     

    The US
Borrower agrees that this US Borrower Guaranty is a continuing, unconditional
guaranty of payment and not of collection, and that its obligations under this
US Borrower Guaranty shall be primary, absolute and unconditional, irrespective
of, and unaffected by (a) the genuineness, validity, regularity, enforceability
or any future amendment of, or change in, this Agreement or any other Loan
Document or any other agreement, document or instrument to which the Canadian
Borrower is or may become a party, (b) the absence of any action to enforce this
US Borrower Guaranty, this Agreement or any other Loan Document or the waiver or
consent by the Administrative Agent or any Lender with respect to any of the
provisions of this US Borrower Guaranty, this Agreement or any other Loan
Document, (c) the existence, value or condition of, or failure to perfect a Lien, if any, against,
any security for or other guaranty of the US Borrower Guaranteed Obligations or
any action, or the absence of any action, by the Administrative Agent or any
Lender in respect of such security or guaranty (including, without limitation,
the release of any such security or guaranty), (d) any structural change in,
restructuring of or other similar change of the Canadian Borrower or any of its
Subsidiaries or (e) any other action or circumstances which might otherwise
constitute a legal or equitable discharge or defense of a surety or guarantor;
it being agreed by the US Borrower that its obligations under this US Borrower
Guaranty shall not be discharged until the final and indefeasible payment, in
full, of the US Borrower Guaranteed Obligations and the termination of the
Commitments.  To the extent permitted by law, the US Borrower
expressly waives all rights it may now or in the future have under any statute
(including, without limitation, North Carolina General Statutes Section 26-7, et
seq. or similar law), or at law or in equity, or otherwise, to compel the
Administrative Agent or any Lender to proceed in respect of the US Borrower
Guaranteed Obligations against the Canadian Borrower, any other guarantor or any
other party or against any security for or other guaranty of the payment of the
US Borrower Guaranteed Obligations before proceeding against, or as a condition
to proceeding against, the US Borrower.  To the extent permitted by
law, the US Borrower further expressly waives and agrees not to assert or take
advantage of any defense based upon the failure of the Administrative Agent or
any Lender to commence an action in respect of the US Borrower Guaranteed
Obligations against the Canadian Borrower, the US Borrower, any other guarantor
or any other party or any security for the payment of the US Borrower Guaranteed
Obligations.  The US Borrower agrees that any notice or directive
given at any time to the Administrative Agent or any Lender which is
inconsistent with the waivers in the preceding two sentences shall be null and
void and may be ignored by the Administrative Agent or such Lender, and, in
addition, may not be pleaded or introduced as evidence in any litigation
relating to this US Borrower Guaranty for the reason that such pleading or
introduction would be at variance with the written terms of this US Borrower
Guaranty, unless the Administrative Agent and the Required Lenders have
specifically agreed otherwise in writing.  The foregoing waivers are
of the essence of the transaction contemplated by the Loan Documents and, but
for this US Borrower Guaranty and such waivers, the Administrative Agent and the
Lenders would decline to enter into this Agreement.

     

    
      
        
        

      

      
        88

        
          

        

      

      
        
        

      

    

     

    SECTION
12.3 Demand by the Administrative
Agent

     

    In
addition to the terms set forth in Section 12.2, and in
no manner imposing any limitation on such terms, if all or any portion of the
then outstanding US Borrower Guaranteed Obligations under this Agreement are
declared to be immediately due and payable in accordance with the terms of this
Agreement, then the US Borrower shall, upon demand in writing therefor by the
Administrative Agent to the US Borrower, pay all or such portion of the
outstanding US Borrower Guaranteed Obligations then declared due and
payable.  Payment by the US Borrower shall be made to the
Administrative Agent, to be credited and applied upon the US Borrower Guaranteed
Obligations, in immediately available funds to an account designated by the
Administrative Agent or at the Administrative Agent’s Office or at any other
address that may be specified in writing from time to time by the Administrative
Agent.

     

    SECTION
12.4 Waivers

     

    In
addition to the waivers contained in Section 12.2,
the US Borrower waives, and agrees that it shall not at any time insist upon,
plead or in any manner whatever claim or take the benefit or advantage of, any
appraisal, valuation, stay, extension, marshalling of assets or redemption laws,
or exemption, whether now or at any time hereafter in force, which may delay,
prevent or otherwise affect the performance by the US Borrower of its
obligations under, or the enforcement by the Administrative Agent or the Lenders
of, this US Borrower Guaranty.  The US Borrower further hereby waives
diligence, presentment, demand, protest and notice of whatever kind or nature
with respect to any of the US Borrower Guaranteed Obligations and waives the
benefit of all provisions of law which are or might be in conflict with the
terms of this US Borrower Guaranty.  The US Borrower represents,
warrants and agrees that its obligations under this US Borrower Guaranty are not
and shall not be subject to any counterclaims, offsets or defenses of any kind
against the Administrative Agent, the Lenders or the Canadian Borrower whether
now existing or which may arise in the future.

     

    
      
        
        

      

      
        89

        
          

        

      

      
        
        

      

    

     

    SECTION
12.5 Modification of Loan
Documents etc.

     

    If the
Administrative Agent or the Lenders shall at any time or from time to time, with
or without the consent of, or notice to, the US Borrower (a) change or extend
the manner, place or terms of payment of, or renew or alter all or any portion
of, the US Borrower Guaranteed Obligations, (b) take any action under or in
respect of the Loan Documents in the exercise of any remedy, power or privilege
contained therein or available to it at law, in equity or otherwise, or waive or
refrain from exercising any such remedies, powers or privileges, (c) amend or
modify, in any manner whatsoever, the Loan Documents, (d) extend or waive the
time for performance by the US Borrower, any other guarantor, the Canadian
Borrower or any other Person of, or compliance with, any term, covenant or
agreement on its part to be performed or observed under a Loan Document (other
than this US Borrower Guaranty), or waive such performance or compliance or
consent to a failure of, or departure from, such performance or compliance, (e)
take and hold security or collateral for the payment of the US Borrower
Guaranteed Obligations or sell, exchange, release, dispose of, or otherwise deal
with, any property pledged, mortgaged or conveyed, or in which the
Administrative Agent or any Lender has been granted a Lien, to secure any
Indebtedness of the US Borrower, any other guarantor or the Canadian Borrower to
the Administrative Agent or any Lender, (f) release anyone who may be liable in
any manner for the payment of any amounts owed by the US Borrower, any other
guarantor or the Canadian Borrower to the Administrative Agent or any Lender,
(g) modify or terminate the terms of any intercreditor or subordination
agreement pursuant to which claims of other creditors of the US Borrower, any
other guarantor or the Canadian Borrower are subordinated to the claims of the
Administrative Agent or any Lender or (h) apply any sums by whomever paid or
however realized to any US Borrower Guaranteed Obligations owing by the US
Borrower, any other guarantor or the Canadian Borrower to the Administrative
Agent or any Lender in such manner as the Administrative Agent or any Lender
shall determine in its reasonable discretion; then neither the Administrative
Agent nor any Lender shall incur any liability to the US Borrower as a result
thereof, and no such action shall impair or release the obligations of the US
Borrower under this US Borrower Guaranty.

     

    SECTION
12.6 Reinstatement

     

    The US
Borrower agrees that, if any payment made by the Canadian Borrower or any other
Person applied to the Obligations is at any time annulled, set aside, rescinded,
invalidated, declared to be fraudulent or preferential or otherwise required to
be refunded or repaid, or the proceeds of any collateral are required to be
returned by the Administrative Agent or any Lender to the Canadian Borrower, its
estate, trustee, receiver, liquidator, administrator or any other party,
including, without limitation, the US Borrower, under any Applicable Law or
equitable cause, then, to the extent of such payment or repayment, the US
Borrower’s liability hereunder shall be and remain in full force and effect, as
fully as if such payment had never been made, and, if prior thereto, this US
Borrower Guaranty shall have been canceled or surrendered, this US Borrower
Guaranty shall be reinstated in full force and effect, and such prior
cancellation or surrender shall not diminish, release, discharge, impair or
otherwise affect the obligations of the US Borrower in respect of the amount of
such payment.

     

    SECTION
12.7 No
Subrogation

     

    Notwithstanding
any payment or payments by the US Borrower hereunder, or any set-off or
application of funds of the US Borrower by the Administrative Agent or any
Lender, or the receipt of any amounts by the Administrative Agent or any Lender
with respect to any of the US Borrower Guaranteed Obligations, the US Borrower
shall not be entitled to be subrogated to any of the rights of the
Administrative Agent or any Lender against the Canadian Borrower or any other
guarantor or against any collateral security held by the Administrative Agent or
any Lender for the payment of the US Borrower Guaranteed Obligations nor shall
the US Borrower seek any reimbursement from the Canadian Borrower or any of the
other guarantors in respect of payments made by the US Borrower in connection
with the US Borrower Guaranteed Obligations, until all amounts owing to the
Administrative Agent and the Lenders on account of the US Borrower Guaranteed
Obligations are paid in full and the Commitments are terminated.  If
any amount shall be paid to the US Borrower on account of such subrogation
rights at any time when all of the US Borrower Guaranteed Obligations shall not
have been paid in full, such amount shall be held by the US Borrower in trust
for the Administrative Agent, segregated from other funds of the US Borrower,
and shall, forthwith upon receipt by the US Borrower, be turned over to the
Administrative Agent in the exact form received by the US Borrower (duly
endorsed by the US Borrower to the Administrative Agent, if required) to be
applied against the US Borrower Guaranteed Obligations, whether matured or
unmatured, in such order as set forth herein.

     

    
      
        
        

      

      
        90

        
          

        

      

      
        
        

      

    

    ARTICLE
XIII                                

    DEFAULT AND
REMEDIES

    SECTION
13.1 Events of
Default

     

    Each of
the following shall constitute an Event of Default, whatever the reason for such
event and whether it shall be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment or order of any court or any order,
rule or regulation of any Governmental Authority or otherwise:

     

    (a) Default in Payment of
Principal of Loans and Reimbursement Obligations.  The
Borrowers shall default in any payment of principal of any Loan when due or in
any payment of a Reimbursement Obligation (whether at maturity, by reason of
acceleration or otherwise).

     

    (b) Other Payment
Default.  The Borrowers or any other Credit Party shall default
in the payment when and as due (whether at maturity, by reason of acceleration
or otherwise) of interest on any Loan or Reimbursement Obligation or the payment
of any other Obligation, and such default shall continue for a period of five
(5) days.

     

    (c) Misrepresentation.  Any
representation, warranty, certification or statement of fact made or deemed made
by or on behalf of any Borrower or any other Credit Party herein, in any other
Loan Document, or in any document delivered in connection herewith or therewith
that is subject to materiality or Material Adverse Effect qualifications, shall
be incorrect or misleading in any respect when made or deemed made or any
representation, warranty, certification or statement of fact made or deemed made
by or on behalf of any Borrower or any other Credit Party herein, any other Loan
Document, or in any document delivered in connection herewith or therewith that
is not subject to materiality or Material Adverse Effect qualifications, shall
be incorrect or misleading in any material respect when made or deemed
made.

     

    
      
        
        

      

      
        91

        
          

        

      

      
        
        

      

    

     

    (d) Default in Performance of
Certain Covenants.  The US Borrower or any other Credit Party
shall:

     

    (i)  default
in the performance or observance of any covenant or agreement contained in Sections 8.1(a),
8.1(b), or
8.5(e)(i) or
Articles X or
XI of this
Agreement; or

     

    (ii)  default
in the performance or observance of any covenant or agreement contained in Section 8.2 and such
default shall continue for a period of five (5) days.

     

    (e) Default in Performance of
Other Covenants and Conditions.  The US Borrower or any other
Credit Party shall default in the performance or observance of any term,
covenant, condition or agreement contained in this Agreement (other than as
specifically provided for otherwise in this Section) or any other Loan Document
and such default shall continue for a period of thirty (30) days after written
notice thereof has been given to the US Borrower by the Administrative
Agent.

     

    (f) Hedging
Agreement.  The US Borrower or any other Credit Party shall
default in the performance or observance of any terms, covenant, condition or
agreement (after giving effect to any applicable grace or cure period) under any
Hedging Agreement and such default causes the termination of such Hedging
Agreement and the Termination Value owned by such Credit Party as a result
thereof exceeds $5,000,000.

     

    (g) Indebtedness
Cross-Default.  The US Borrower or any other Credit Party shall
(i) default in the payment of any Indebtedness (other than the Loans or any
Reimbursement Obligation) the aggregate outstanding amount of which Indebtedness
is in excess of $7,500,000 beyond the period of grace if any, provided in the
instrument or agreement under which such Indebtedness was created, or (ii)
default in the observance or performance of any other agreement or condition
relating to any Indebtedness (other than the Loans or any Reimbursement
Obligation) the aggregate outstanding amount of which Indebtedness is in excess
of $7,500,000 or contained in any instrument or agreement evidencing, securing
or relating thereto or any other event shall occur or condition exist, the
effect of which default or other event or condition is to cause, or to permit
the holder or holders of such Indebtedness (or a trustee or agent on behalf of
such holder or holders) to cause, with the giving of notice if required, any
such Indebtedness to become due prior to its stated maturity (any applicable
grace period having expired).

     

    (h) Other
Cross-Defaults.  The US Borrower or any other Credit Party
shall default in the payment when due, or in the performance or observance, of
any obligation or condition of any Material Contract unless, but only as long
as, the existence of any such default is being contested by the US Borrower or
any such Subsidiary in good faith by appropriate proceedings and adequate
reserves in respect thereof have been established on the books of the US
Borrower or such Credit Party to the extent required by GAAP.

     

    (i) Change in
Control.  A Change in Control shall occur.

     

    (j) Voluntary Bankruptcy
Proceeding.  The US Borrower or any Subsidiary thereof shall
(i) commence a voluntary case under the federal bankruptcy laws (as now or
hereafter in effect), (ii) file a petition seeking to take advantage of any
other laws, domestic or foreign, relating to bankruptcy, insolvency,
reorganization, winding up or composition for adjustment of debts, (iii) consent
to or fail to contest in a timely and appropriate manner any petition filed
against it in an involuntary case under such bankruptcy laws or other laws, (iv)
apply for or consent to, or fail to contest in a timely and appropriate manner,
the appointment of, or the taking of possession by, a receiver, custodian,
trustee, or liquidator of itself or of a substantial part of its property,
domestic or foreign, (v) admit in writing its inability to pay its debts as they
become due, (vi) make a general assignment for the benefit of creditors, or
(vii) take any corporate action for the purpose of authorizing any of the
foregoing.

     

    
      
        
        

      

      
        92

        
          

        

      

      
        
        

      

    

     

    (k) Involuntary Bankruptcy
Proceeding.  A case or other proceeding shall be commenced
against the US Borrower or any Subsidiary thereof in any court of competent
jurisdiction seeking (i) relief under the federal bankruptcy laws (as now or
hereafter in effect) or under any other laws, domestic or foreign, relating to
bankruptcy, insolvency, reorganization, winding up or adjustment of debts, or
(ii) the appointment of a trustee, receiver, custodian, liquidator or the like
for the US Borrower or any Subsidiary thereof or for all or any substantial part
of their respective assets, domestic or foreign, and such case or proceeding
shall continue without dismissal or stay for a period of sixty (60) consecutive
days, or an order granting the relief requested in such case or proceeding
(including, but not limited to, an order for relief under such federal
bankruptcy laws) shall be entered.

     

    (l) Failure of
Agreements.  Any provision of this Agreement or any provision
of any other Loan Document shall for any reason cease to be valid and binding on
the US Borrower or any Subsidiary thereof party thereto or any such Person shall
so state in writing.

     

    (m) Termination
Event.  The occurrence of any of the following
events:  (i) the US Borrower or any ERISA Affiliate fails to make full
payment when due of all amounts which, under the provisions of any Pension Plan
or Section 412 of the Code, the US Borrower or any ERISA Affiliate is required
to pay as contributions thereto, (ii) an accumulated funding deficiency in
excess of $5,000,000 occurs or exists, whether or not waived, with respect to
any Pension Plan, (iii) a Termination Event or (iv) the US Borrower or any ERISA
Affiliate as employers under one or more Multiemployer Plans makes a complete or
partial withdrawal from any such Multiemployer Plan and the plan sponsor of such
Multiemployer Plans notifies such withdrawing employer that such employer has
incurred a withdrawal liability requiring payments in an amount exceeding
$5,000,000 in the aggregate or $2,000,000 per annum.

     

    (n) Judgment.  A
judgment or order for the payment of money which causes the aggregate amount of
all such judgments to exceed $7,500,000 in any Fiscal Year (to the extent not
covered by independent third-party insurance as to which the insurer does not
dispute coverage), shall be entered against the US Borrower or any Subsidiary
thereof by any court and such judgment or order shall continue without having
been discharged, vacated or stayed for a period of thirty (30) days after the
entry thereof.

     

    (o) Environmental.  Any
one or more Environmental Claims shall have been asserted against the US
Borrower or any Subsidiary thereof; the US Borrower and any Subsidiary thereof
would be reasonable likely to incur liability as a result thereof; and such
liability would be reasonably likely, individually or in the aggregate, to have
a Material Adverse Effect.

     

    
      
        
        

      

      
        93

        
          

        

      

      
        
        

      

    

     

    SECTION
13.2 Remedies

     

    Upon the
occurrence and during the continuance of an Event of Default, with the consent
of the Required Lenders, the Administrative Agent may, or upon the request of
the Required Lenders, the Administrative Agent shall, by notice to the US
Borrower:

     

    (a) Acceleration; Termination of
Facilities.  Terminate the Commitments and declare the
principal of and interest on the Loans and the Reimbursement Obligations at the
time outstanding, and all other amounts owed to the Lenders and to the
Administrative Agent under this Agreement or any of the other Loan Documents
(including, without limitation, all L/C Obligations, whether or not the
beneficiaries of the then outstanding Letters of Credit shall have presented or
shall be entitled to present the documents required thereunder) and all other
Obligations (other than Hedging Obligations), to be forthwith due and payable,
whereupon the same shall immediately become due and payable without presentment,
demand, protest or other notice of any kind, all of which are expressly waived
by each Credit Party, anything in this Agreement or the other Loan Documents to
the contrary notwithstanding, and terminate the Credit Facility and any right of
the Borrowers to request borrowings or Letters of Credit thereunder; provided, that upon
the occurrence of an Event of Default specified in Section 13.1(j) or
(k), the Credit
Facility shall be automatically terminated and all Obligations (other than
Hedging Obligations) shall automatically become due and payable without
presentment, demand, protest or other notice of any kind, all of which are
expressly waived by each Credit Party, anything in this Agreement or in any
other Loan Document to the contrary notwithstanding.

     

    (b) Letters of
Credit.  With respect to all Letters of Credit with respect to
which presentment for honor shall not have occurred at the time of an
acceleration pursuant to the preceding subsection, the Borrowers shall at such
time deposit in a cash collateral account opened by the Administrative Agent an
amount equal to the aggregate then undrawn and unexpired amount of such Letters
of Credit.  Amounts held in such cash collateral account shall be
applied by the Administrative Agent to the payment of drafts drawn under such
Letters of Credit, and the unused portion thereof after all such Letters of
Credit shall have expired or been fully drawn upon, if any, shall be applied to
repay the other Obligations on a pro rata
basis.  After all such Letters of Credit shall have expired or been
fully drawn upon, the Reimbursement Obligation shall have been satisfied and all
other Obligations shall have been paid in full, the balance, if any, in such
cash collateral account shall be returned to the Borrowers.

     

    (c) Rights of
Collection.  Exercise on behalf of the Lenders all of its other
rights and remedies under this Agreement, the other Loan Documents and
Applicable Law, in order to satisfy all of the Borrowers’
Obligations.

     

    SECTION
13.3 Rights and Remedies
Cumulative; Non-Waiver; etc.

     

    Neither
the Administrative Agent nor any Lender shall by any act (except by a written
instrument pursuant to Section 15.1), delay,
indulgence, omission or otherwise be deemed to have waived any right or remedy
hereunder or to have acquiesced in any Default or Event of
Default.  No delay or failure to take action on the part of the
Administrative Agent or any Lender in exercising any right, power or privilege
shall operate as a waiver thereof, nor shall any single or partial exercise of
any such right, power or privilege preclude any other or further exercise
thereof or the exercise of any other right, power or privilege or shall be
construed to be a waiver of any Event of Default.  No course of
dealing between the  Borrowers, the Administrative Agent and the
Lenders or their respective agents or employees shall be effective to change,
modify or discharge any provision of this Agreement or any of the other Loan
Documents or to constitute a waiver of any Event of Default.  The
enumeration of the rights and remedies of the Administrative Agent and the
Lenders set forth in this Agreement is not intended to be exhaustive and the
exercise by the Administrative Agent and the Lenders of any right or remedy
shall not preclude the exercise of any other rights or remedies, all of which
shall be cumulative, and shall be in addition to any other right or remedy given
hereunder or under the other Loan Documents or that may now or hereafter exist
at law or in equity or by suit or otherwise.

     

    
      
        
        

      

      
        94

        
          

        

      

      
        
        

      

    

     

    SECTION
13.4 Crediting of Payments and
Proceeds

     

    In the
event that the Borrowers shall fail to pay any of the Obligations when due and
the Obligations have been accelerated pursuant to Section 13.2, all
payments received by the Lenders upon the Obligations and all net proceeds from
the enforcement of the Obligations shall be applied:

     

    First, to payment of
that portion of the Obligations constituting fees, indemnities, expenses and
other amounts, including attorney fees, payable to the Administrative Agent in
its capacity as such and the Issuing Lender in its capacity as such (ratably
among the Administrative Agent and the Issuing Lender in proportion to the
respective amounts described in this clause First payable to
them);

     

    Second, to payment of
that portion of the Obligations constituting fees, indemnities and other amounts
(other than principal and interest) payable to the Lenders, including attorney
fees (ratably among the Lenders in proportion to the respective amounts
described in this clause Second payable to
them);

     

    Third, to payment of
that portion of the Obligations constituting accrued and unpaid interest on the
Loans and Reimbursement Obligations and any Hedging Obligations (including any
termination payments and any accrued and unpaid interest thereon) (ratably among
the Lenders in proportion to the respective amounts described in this clause
Third payable
to them);

     

    Fourth, to payment of
that portion of the Obligations constituting unpaid principal of the Loans and
Reimbursement Obligations (ratably among the Lenders in proportion to the
respective amounts described in this clause Fourth held by
them);

     

    Fifth, to the
Administrative Agent for the account of the Issuing Lender, to cash
collateralize any L/C Obligations then outstanding; and

     

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

     

    SECTION
13.5 Administrative Agent May
File Proofs of Claim

     

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

     

    
      
        
        

      

      
        95

        
          

        

      

      
        
        

      

    

     

    (a) to file
and prove a claim for the whole amount of the principal and interest owing and
unpaid in respect of the Loans, L/C Obligations and all other Obligations that
are owing and unpaid and to file such other documents as may be necessary or
advisable in order to have the claims of the Lenders and the Administrative
Agent (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Lenders and the Administrative Agent and their
respective agents and counsel and all other amounts due the Lenders and the
Administrative Agent under Sections 3.3, 5.3 and
15.3) allowed in such judicial proceeding; and

     

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

     

    and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such judicial proceeding is hereby authorized by each
Lender to make such payments to the Administrative Agent and, in the event that
the Administrative Agent shall consent to the making of such payments directly
to the Lenders, to pay to the Administrative Agent any amount due for the
reasonable compensation, expenses, disbursements and advances of the
Administrative Agent and its agents and counsel, and any other amounts due the
Administrative Agent under Sections 5.3 and
15.3.

     

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

     

    SECTION
13.6 Judgment
Currency

     

     

    (a) The
obligation of the Borrowers to make payments of the principal of and interest on
the Notes and the obligation of any such Person to make payments of any other
amounts payable hereunder or pursuant to any other Loan Document in the currency
specified for such payment shall not be discharged or satisfied by any tender,
or any recovery pursuant to any judgment, which is expressed in or converted
into any other currency, except to the extent that such tender or recovery shall
result in the actual receipt by each of the Administrative Agent and Lenders of
the full amount of the particular currency expressed to be payable pursuant to
the applicable Loan Document.  The Administrative Agent shall, using
all amounts obtained or received from the Borrowers pursuant to any such tender
or recovery in payment of principal of and interest on the Obligations, promptly
purchase the applicable currency at the most favorable spot exchange rate
determined by the Administrative Agent to be available to it.  The
obligation of the Borrowers to make payments in the applicable currency shall be
enforceable as an alternative or additional cause of action solely for the
purpose of recovering in the applicable currency the amount, if any, by which
such actual receipt shall fall short of the full amount of the currency
expressed to be payable pursuant to the applicable Loan Document.

     

    (b) Without
limiting Section
13.6(a), the Borrowers shall indemnify and hold harmless the
Administrative Agent, the Lenders and the Issuing Lender, as applicable, against
any loss incurred by the Administrative Agent, any Lender or the Issuing Lender
as a result of any payment or recovery described in Section 13.6(a) and
as a result of any variation having occurred in rates of exchange between the
date of any such amount becoming due under this Agreement or any other Loan
Document and the date of actual payment thereof.  The foregoing
indemnity shall constitute a separate and independent obligation of the
Borrowers and shall continue in full force and effect notwithstanding any such
payment or recovery.

     

    
      
        
        

      

      
        96

        
          

        

      

      
        
        

      

    

     

    ARTICLE
XIV                                           

    THE ADMINISTRATIVE
AGENT

    SECTION
14.1 Appointment and
Authority

     

    Each of
the Lenders hereby irrevocably designates and appoints Wachovia to act on its
behalf as the Administrative Agent of such Lender under this Agreement and the
other Loan Documents for the term hereof and each such Lender irrevocably
authorizes Wachovia, as Administrative Agent for such Lender, to take such
action on its behalf under the provisions of this Agreement and the other Loan
Documents and to exercise such powers and perform such duties as are expressly
delegated to the Administrative Agent by the terms of this Agreement and such
other Loan Documents, together with such other powers as are reasonably
incidental thereto.  Notwithstanding any provision to the contrary
elsewhere in this Agreement or such other Loan Documents, the Administrative
Agent shall not have any duties or responsibilities, except those expressly set
forth herein and therein, or any fiduciary relationship with any Lender, and no
implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into this Agreement or the other Loan Documents or
otherwise exist against the Administrative Agent.  Any reference to
the Administrative Agent in this Article XIV shall be
deemed to refer to the Administrative Agent solely in its capacity as
Administrative Agent and not in its capacity as a Lender.

     

    SECTION
14.2 Delegation of
Duties

     

    The
Administrative Agent may execute any of its respective duties under this
Agreement and the other Loan Documents by or through agents or attorneys-in-fact
and shall be entitled to advice of counsel concerning all matters pertaining to
such duties.  The Administrative Agent shall not be responsible for
the negligence or misconduct of any agents or attorneys-in-fact selected by the
Administrative Agent with reasonable care.

     

    SECTION
14.3 Exculpatory
Provisions

     

    Neither
the Administrative Agent nor any of its officers, directors, employees, agents,
attorneys-in-fact, Subsidiaries or Affiliates shall be (a) liable for any action
lawfully taken or omitted to be taken by it or such Person under or in
connection with this Agreement or the other Loan Documents (except for actions
occasioned solely by its or such Person’s own gross negligence or willful
misconduct), or (b) responsible in any manner to any of the Lenders for any
recitals, statements, representations or warranties made by the Borrowers or any
of the Credit Parties or any officer thereof contained in this Agreement or the
other Loan Documents or in any certificate, report, statement or other document
referred to or provided for in, or received by the Administrative Agent under or
in connection with, this Agreement or the other Loan Documents or for the value,
validity, effectiveness, genuineness, enforceability or sufficiency of this
Agreement or the other Loan Documents or for any failure of the Borrowers or any
of the Credit Parties to perform their respective obligations hereunder or
thereunder.  The Administrative Agent shall not be under any
obligation to any Lender to ascertain or to inquire as to the observance or
performance of any of the agreements contained in, or conditions of, this
Agreement, or to inspect the properties, books or records of the Borrowers or
any of the Credit Parties.

     

    
      
        
        

      

      
        97

        
          

        

      

      
        
        

      

    

     

    SECTION
14.4 Reliance by the
Administrative Agent

     

     

    (a) The
Administrative Agent shall be entitled to rely, and shall be fully protected in
relying, upon any note, writing, resolution, notice, consent, certificate,
affidavit, letter, cablegram, telegram, telecopy, telex or teletype message,
statement, order or other document or conversation believed by it to be genuine
and correct and to have been signed, sent or made by the proper Person or
Persons and upon advice and statements of legal counsel (including, without
limitation, counsel to the Borrowers), independent accountants and other experts
selected by the Administrative Agent.  The Administrative Agent shall
be fully justified in failing or refusing to take any action under this
Agreement and the other Loan Documents unless it shall first receive such advice
or concurrence of the Required Lenders (or, when expressly required hereby or by
the relevant other Loan Documents, all the Lenders) as it deems appropriate or
it shall first be indemnified to its satisfaction by the Lenders against any and
all liability and expense which may be incurred by it by reason of taking or
continuing to take any such action except for its own gross negligence or
willful misconduct.  The Administrative Agent shall in all cases be
fully protected in acting, or in refraining from acting, under this Agreement in
accordance with a request of the Required Lenders (or, when expressly required
hereby, all the Lenders), and such request and any action taken or failure to
act pursuant thereto shall be binding upon all the Lenders.

     

    (b) For
purposes of determining compliance with the conditions specified in Section 6.2, 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 the Administrative Agent shall have received
notice from such Lender prior to the proposed Closing Date specifying its
objection thereto.

     

    SECTION
14.5 Notice of
Default

     

    The
Administrative Agent shall not be deemed to have knowledge or notice of the
occurrence of any Default or Event of Default unless it has received notice from
a Lender or the Borrowers referring to this Agreement, describing such Default
or Event of Default and stating that such notice is a “notice of
default”.  In the event that the Administrative Agent receives such a
notice, it shall promptly give notice thereof to the Lenders.  The
Administrative Agent shall take such action with respect to such Default or
Event of Default as shall be reasonably directed by the Required Lenders (or,
when expressly required hereby, all the Lenders); provided that unless
and until the Administrative Agent shall have received such directions, the
Administrative Agent may (but shall not be obligated to) take such action, or
refrain from taking such action, with respect to such Default or Event of
Default as it shall deem advisable in the best interests of the Lenders, except
to the extent that other provisions of this Agreement expressly require that any
such action be taken or not be taken only with the consent and authorization or
the request of the Lenders or Required Lenders, as applicable.

     

    SECTION
14.6 Non-Reliance on the
Administrative Agent and Other Lenders

     

    Each
Lender expressly acknowledges that neither the Administrative Agent nor any of
its respective officers, directors, employees, agents, attorneys-in-fact,
Subsidiaries or Affiliates has made any representations or warranties to it and
that no act by the Administrative Agent hereafter taken, including any review of
the affairs of the  Borrowers or any Credit Party, shall be deemed to
constitute any representation or warranty by the Administrative Agent to any
Lender.  Each Lender represents to the Administrative Agent that it
has, independently and without reliance upon the Administrative Agent or any
other Lender, and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business,
operations, property, financial and other condition and creditworthiness of the
Borrowers and its Subsidiaries and made its own decision to make its Loans and
issue or participate in Letters of Credit hereunder and enter into this
Agreement.  Each Lender also represents that it will, independently
and without reliance upon the Administrative Agent 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 analysis, appraisals and decisions in
taking or not taking action under this Agreement and the other Loan Documents,
and to make such investigation as it deems necessary to inform itself as to the
business, operations, property, financial and other condition and
creditworthiness of the Borrowers or any Credit Party.  Except for
notices, reports and other documents expressly required to be furnished to the
Lenders by the Administrative Agent hereunder or by the other Loan Documents,
the Administrative Agent shall not have any duty or responsibility to provide
any Lender with any credit or other information concerning the business,
operations, property, financial and other condition or creditworthiness of the
Borrowers or any of the Credit Parties which may come into the possession of the
Administrative Agent or any of its respective officers, directors, employees,
agents, attorneys-in-fact, Subsidiaries or Affiliates.

     

    
      
        
        

      

      
        98

        
          

        

      

      
        
        

      

    

     

    SECTION
14.7 Indemnification

     

    The
Lenders agree to indemnify the Administrative Agent in its capacity as such and
(to the extent not reimbursed by the Borrowers and without limiting the
obligation of the Borrowers to do so), ratably according to the respective
amounts of their Commitment Percentages from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind whatsoever which may at any time
(including, without limitation, at any time following the payment of the Loans
or any Reimbursement Obligation) be imposed on, incurred by or asserted against
the Administrative Agent in any way relating to or arising out of this Agreement
or the other Loan Documents, or any documents, reports or other information
provided to the Administrative Agent or any Lender or contemplated by or
referred to herein or therein or the transactions contemplated hereby or thereby
or any action taken or omitted by the Administrative Agent under or in
connection with any of the foregoing; provided that no
Lender shall be liable for the payment of any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements resulting solely from the Administrative Agent’s bad
faith, gross negligence or willful misconduct.  The agreements in this
Section shall survive the payment of the Obligations and the termination of this
Agreement.

     

    SECTION
14.8 The Administrative Agent in
Its Individual Capacity

     

    The
Administrative Agent and its respective Subsidiaries and Affiliates may make
loans to, accept deposits from and generally engage in any kind of business with
the Borrowers as though the Administrative Agent were not the Administrative
Agent hereunder.  With respect to any Loans made or renewed by it and
with respect to any Letter of Credit issued by it or participated in by it, the
Administrative Agent shall have the same rights and powers under this Agreement
and the other Loan Documents as any Lender and may exercise the same as though
it were not the Administrative Agent, and the terms “Lender” and “Lenders” shall
include the Administrative Agent in its individual capacity.

     

    
      
        
        

      

      
        99

        
          

        

      

      
        
        

      

    

     

    SECTION
14.9 Resignation of the
Administrative Agent; Swingline Lender, Issuing Lender and Canadian Dollar
Lender; Successor Administrative Agent, Swingline Lender, Issuing
Lender and Canadian Dollar Lender

     

     

    (a) Subject
to the appointment and acceptance of a successor as provided below, Wachovia may
resign as the Administrative Agent at any time by giving notice thereof to the
Lenders and the US Borrower.  Upon any such resignation, the Required
Lenders shall appoint from among the Lenders a successor administrative agent
for the Lenders, which successor administrative agent shall be consented to by
the Borrowers at all times other than during the existence of an Event of
Default (which consent of the Borrowers shall not be unreasonably withheld or
delayed).  If no successor administrative agent shall have been so
appointed by the Required Lenders and shall have accepted such appointment
within thirty (30) days after the Administrative Agent’s giving of notice of
resignation, then the Administrative Agent may, on behalf of the Lenders,
appoint a successor administrative agent.  Upon the acceptance of any
appointment as Administrative Agent hereunder by a successor administrative
agent, such successor administrative agent shall thereupon succeed to and become
vested with all rights, powers, privileges and duties of the retiring
Administrative Agent and the retiring Administrative Agent shall be discharged
from its duties and obligations hereunder without any other or further act or
deed on the part of such retiring Administrative Agent or any other
Lender.  After any retiring Administrative Agent’s resignation
hereunder as Administrative Agent, the provisions of this Article XIV and Section 15.3
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.  If no
successor administrative agent has accepted appointment as Administrative Agent
by the date which is thirty (30) days following a retiring Administrative
Agent’s notice of resignation, the retiring Administrative Agent’s resignation
shall nevertheless thereupon become effective and the Lenders shall perform all
of the duties of the Administrative Agent hereunder until such time, if any, as
the Required Lenders appoint a successor agent as provided for
above.

     

    (b) Notwithstanding
anything to the contrary contained herein, Wachovia may, (i) upon thirty (30)
days’ notice to the US Borrower and the Revolving Credit Lenders, resign as
Issuing Lender and/or (ii) upon thirty (30) days’ notice to the US Borrower,
resign as Swingline Lender.  In the event of any such resignation as
Issuing Lender or Swingline Lender, the US Borrower shall be entitled to appoint
from among the Revolving Credit Lenders a successor Issuing Lender or Swingline
Lender hereunder; provided that no
failure by the US Borrower to appoint any such successor shall affect the
resignation of Wachovia as Issuing Lender or Swingline Lender, as the case may
be.  If Wachovia resigns as Issuing Lender, it shall retain all the
rights and obligations of the Issuing Lender hereunder with respect to all
Letters of Credit outstanding as of the effective date of its resignation as
Issuing Lender and all L/C Obligations with respect thereto, including the right
to require the Lenders to make Revolving Credit Loans or fund risk
participations for unreimbursed amounts of Letters of Credit pursuant to Section
3.4.  If Wachovia resigns as Swingline Lender, it shall retain
all the rights of the Swingline Lender provided for hereunder with respect to
Swingline Loans made by it and outstanding as of the effective date of such
resignation, including the right to require the Revolving Credit Lenders to make
Revolving Credit Loans or fund risk participations in outstanding Swingline
Loans pursuant to Section
2.3(b).

     

    
      
        
        

      

      
        100

        
          

        

      

      
        
        

      

    

     

    (c) Notwithstanding
anything to the contrary contained herein, Wachovia Canada may, upon thirty (30)
days’ notice to the US Borrower and the Revolving Credit Lenders, resign as
Canadian Dollar Lender.  In the event of any such resignation as
Canadian Dollar Lender, the US Borrower shall be entitled to appoint from among
the Revolving Credit Lenders or an Eligible Assignee, a successor Canadian
Dollar Lender hereunder; provided that (i) no
Revolving Credit Lender shall be required to accept such appointment as
successor Canadian Dollar Lender; (ii) any successor Canadian Dollar Lender
shall be approved by the Administrative Agent (such approval not to be
unreasonably withheld or delayed); and (iii) until a Revolving Credit Lender or
an Eligible Assignee shall have notified the Administrative Agent and the
current Canadian Dollar Lender in writing that it has agreed to act as a
successor Canadian Dollar Lender, the current Canadian Dollar Lender shall
continue as Canadian Dollar Lender hereunder.  If no successor
Canadian Dollar Lender shall have been so appointed and accepted such
appointment within thirty (30) days after the Canadian Dollar Lender’s giving of
notice of resignation, then the Canadian Dollar Lender, with the consent of the
Administrative Agent (such consent not to be unreasonably withheld or delayed),
may, on behalf of the Lenders, appoint an Eligible Assignee as a successor
Canadian Dollar Lender. Upon the acceptance of any appointment as Canadian
Dollar Lender hereunder by a successor, such successor Canadian Dollar Lender
shall thereupon succeed to and become vested with all rights, powers, privileges
and duties of the replaced Canadian Dollar Lender, and the replaced Canadian
Dollar Lender shall be discharged from its duties and obligations in its
capacity as Canadian Dollar Lender without any other or further act or deed on
the part of such replaced Canadian Dollar Lender, the Administrative
Agent  or any other Lender.  If Wachovia Canada resigns as
Canadian Dollar Lender, it shall retain all the rights of the Canadian Dollar
Lender provided for hereunder with respect to Canadian Dollar Loans made by it
and outstanding as of the effective date of such resignation, including the
right to require the Revolving Credit Lenders to make Revolving Credit Loans or
fund risk participations in outstanding Canadian Dollar Loans pursuant to Section
2.2(b).

     

    

    SECTION
14.10 Guaranty
Matters

     

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

     

    Upon
request by the Administrative Agent at any time, the Required Lenders will
confirm in writing the Administrative Agent’s authority to release any
Subsidiary Guarantor from its obligations under the Subsidiary Guaranty
Agreement pursuant to this Section.

     

    SECTION
14.11 Other Agents, Arrangers and
Managers

     

    None of
the Lenders or other Persons identified on the facing page or signature pages of
this Agreement as a “syndication agent,” “documentation agent,” “co-agent,”
“book manager,” “lead manager,” “arranger,” “lead arranger” or “co-arranger”
shall have any right, power, obligation, liability, responsibility or duty under
this Agreement other than, in the case of such Lenders, those applicable to all
Lenders as such.  Without limiting the foregoing, none of the Lenders
or other Persons so identified shall have or be deemed to have any fiduciary
relationship with any Lender.  Each Lender acknowledges that it has
not relied, and will not rely, on any of the Lenders or other Persons so
identified in deciding to enter into this Agreement or in taking or not taking
action hereunder.

     

    
      
        
        

      

      
        101

        
          

        

      

      
        
        

      

    

     

    ARTICLE
XV                                

    MISCELLANEOUS

    SECTION
15.1 Notices

     

     

    (a) Method of
Communication.  Except as otherwise provided in this Agreement,
all notices and communications hereunder shall be in writing (for purposes
hereof, the term “writing” shall include information in electronic format such
as electronic mail and internet web pages), or by telephone subsequently
confirmed in writing.  Any notice shall be effective if delivered by
hand delivery or sent via electronic mail, posting on an internet web page,
telecopy, recognized overnight courier service or certified mail, return receipt
requested, and shall be presumed to be received by a party hereto (i) on the
date of delivery if delivered by hand or sent by electronic mail, posting on an
internet web page, telecopy, (ii) on the next Business Day if sent by recognized
overnight courier service and (iii) on the third (3rd)
Business Day following the date sent by certified mail, return receipt
requested.  A telephonic notice to the Administrative Agent as
understood by the Administrative Agent will be deemed to be the controlling and
proper notice in the event of a discrepancy with or failure to receive a
confirming written notice.

     

    (b) Addresses for
Notices.  Notices to any party shall be sent to it at the
following addresses, or any other address as to which all the other parties are
notified in writing.

     

    

    If to the
Borrowers:                              Pool
Corporation

    109 Northpark Boulevard

    Covington, Louisiana
70433

    Attention: Mark Joslin, Chief
Financial Officer

    Telephone No.: (985)
801-5702

    Telecopy No.: (985)
801-8302

    

    With
copies
to:                                     Pool
Corporation

    109 Northpark Blvd

    Covington,
Louisiana 70433

    Attention:  Jennifer Neil,
General Counsel

    Telephone No.:  (985)
801-5269

    Telecopy No.:  (985)
801-8269

    

    If to
Wachovia as

     Administrative
Agent:                       Wachovia
Bank, National Association

    NC0680

    1525 West W.T. Harris
Blvd.

    Charlotte, North Carolina
28262

    Attention of: Syndication Agency
Services

    Telephone No.:  (704)
590-2703

    Telecopy No.: (704)
590-3481

     

    
      
        
        

      

      
        102

        
          

        

      

      
        
        

      

    

     

    With
copies
to:                                    Wachovia
Bank, National Association

    1 South Broad Street

    PA4843

    Philadelphia, PA 19107

    Attention: Mark Supple

    Telephone No.: (267)
321-6634

    Telecopy No.: (267)
321-6700

     

    If to any
Lender:                   To
the address set forth on the Register

     

    (c) Administrative Agent’s
Office.  The Administrative Agent hereby designates its office
located at the address set forth above, or any subsequent office which shall
have been specified for such purpose by written notice to the Borrowers and
Lenders, as the Administrative Agent’s Office referred to herein, to which
payments due are to be made and at which Loans will be disbursed and Letters of
Credit requested.

     

    (d) Change of Address,
Etc.  Any party hereto may change its address or telecopier
number for notices and other communications hereunder by notice to the other
parties hereto.

     

    SECTION
15.2 Amendments, Waivers and
Consents

     

    Except as
set forth below or as specifically provided in any Loan Document, any term,
covenant, agreement or condition of this Agreement or any of the other Loan
Documents may be amended or waived by the Lenders, and any consent given by the
Lenders, if, but only if, such amendment, waiver or consent is in writing signed
by the Required Lenders (or by the Administrative Agent with the consent of the
Required Lenders) and delivered to the Administrative Agent and, in the case of
an amendment, signed by the Borrowers; provided, that no
amendment, waiver or consent shall:

     

    (a) waive any
condition set forth in Section 6.2 without
the written consent of each Revolving Credit Lender;

     

    (b) amend,
modify or waive Section 6.3 or any
other provision of this Agreement if the effect of such amendment, modification
or waiver is to require the Revolving Credit Lenders to make Revolving Credit
Loans when such Revolving Credit Lenders would not otherwise be required to do
so without the prior written consent of any combination of Revolving Credit
Lenders whose Revolving Credit Commitments aggregate more than fifty percent
(50%) of the Revolving Credit Commitment;

     

    (c) extend or
increase the Commitment of any Lender (or reinstate any Commitment terminated
pursuant to Section
13.2) or the amount of Loans of any Lender without the written consent of
each Lender directly affected thereby;

     

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

     

    (e) reduce
the principal of, or the rate of interest specified herein on, any Loan or
Reimbursement Obligation, or (subject to clause (v) of the second proviso to
this Section) any fees or other amounts payable hereunder or under any other
Loan Document without the written
consent of each Lender directly affected thereby; provided that only
the consent of the Required Lenders shall be necessary (i) to waive any
obligation of the Borrowers to pay interest at the rate set forth in Section 5.1(c) during
the continuance of an Event of Default, or (ii) to amend any financial covenant
hereunder (or any defined term used therein) even if the effect of such
amendment would be to reduce the rate of interest on any Loan or L/C Borrowing
or to reduce any fee payable hereunder;

     

    
      
        
        

      

      
        103

        
          

        

      

      
        
        

      

    

     

    (f) change
Section 5.4 or
Section 13.4 in
a manner that would alter the pro rata sharing of
payments required thereby without the written consent of each Lender directly
affected thereby;

     

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

     

    (h) release
all of the Subsidiary Guarantors or release Subsidiary Guarantors comprising
substantially all of the credit support for the Obligations, in either case,
from the Subsidiary Guaranty Agreement (other than as authorized in Section 14.10),
without the written consent of each Lender;

     

    provided further, that (i) no
amendment, waiver or consent shall, unless in writing and signed by the Issuing
Lender in addition to the Lenders required above, affect the rights or duties of
the Issuing Lender under this Agreement or any Letter of Credit Application
relating to any Letter of Credit issued or to be issued by it; (ii) no
amendment, waiver or consent shall, unless in writing and signed by the
Swingline Lender in addition to the Lenders required above, affect the rights or
duties of the Swingline Lender under this Agreement; (iii) no amendment, waiver
or consent shall, unless in writing and signed by the Canadian Dollar Lender in
addition to the Lenders required above, affect the rights or duties of the
Canadian Dollar Lender under this Agreement; (iv) no amendment, waiver or
consent shall, unless in writing and signed by the Administrative Agent in
addition to the Lenders required above, affect the rights or duties of the
Administrative Agent under this Agreement or any other Loan Document; and (v)
the Fee Letter may be amended, or rights or privileges thereunder waived, in a
writing executed only by the parties thereto.  Notwithstanding
anything to the contrary herein, (x) no Defaulting Lender shall have any right
to approve or disapprove any amendment, waiver or consent hereunder, except that
the Commitment of such Lender may not be increased or extended without the
consent of such Lender and (y) each Lender hereby irrevocably authorizes the
Administrative Agent, on its behalf, and without further consent to enter into
amendments or modifications to this Agreement or any other Loan Document as the
Administrative Agent reasonably deems appropriate in order to effectuate the
terms of Section
2.9; provided that such
amendment or modification shall not modify this Agreement or any other Loan
Document in a manner materially adverse to any Lender.

     

    
      
        
        

      

      
        104

        
          

        

      

      
        
        

      

    

     

    SECTION
15.3 Expenses;
Indemnity

     

    The
Borrowers will (a) pay all out-of-pocket expenses (including, without
limitation, all costs of electronic or internet distribution of any information
hereunder) of the Administrative Agent in connection with (i) the preparation,
execution and delivery of this Agreement and each other Loan Document, whenever
the same shall be executed and delivered, including, without limitation, all
out-of-pocket syndication and due diligence expenses and reasonable fees,
disbursements and other charges of counsel for the Administrative Agent and (ii)
the preparation, execution and delivery of any waiver, amendment or consent by
the Administrative Agent or the Lenders relating to this Agreement or any other
Loan Document, including, without limitation, reasonable fees and disbursements
of counsel for the Administrative Agent, (b) pay all reasonable out-of-pocket
expenses of the Administrative Agent and each Lender actually incurred in
connection with the administration and enforcement of any rights and remedies of
the Administrative Agent and Lenders under the Credit Facility, including,
without limitation, in connection with any workout, restructuring, bankruptcy or
other similar proceeding, creating and perfecting Liens in favor
of  the Administrative Agent on behalf of Lenders, enforcing any
Obligations of, or collecting any payments due from, the Borrowers or any
Subsidiary Guarantor by reason of an Event of Default (including in connection
with the sale of, collection from, or other realization upon any collateral or
the enforcement of the Subsidiary Guaranty Agreement); consulting with
appraisers, accountants, engineers, attorneys and other Persons concerning the
nature, scope or value of any right or remedy of the Administrative Agent or any
Lender hereunder or under any other Loan Document or any factual matters in
connection therewith, which expenses shall include without limitation the
reasonable fees and disbursements of such Persons, and (c) defend, indemnify and
hold harmless the Administrative Agent and the Lenders, and their respective
parents, Subsidiaries, Affiliates, partners, employees, agents, officers,
advisors and directors, from and against any losses, penalties, fines,
liabilities, settlements, damages, costs and expenses, suffered by any such
Person in connection with any claim (including, without limitation, any
Environmental Claims), investigation, litigation or other proceeding (whether or
not the Administrative Agent or any Lender is a party thereto) and the
prosecution and defense thereof, arising out of or in any way connected with the
Loans, this Agreement, any other Loan Document, or any documents, reports or
other information provided to the Administrative Agent or any Lender or
contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby, including, without limitation, reasonable
attorney’s and consultant’s fees, except to the extent that any of the foregoing
(i) are determined by a court of competent jurisdiction by a final and
nonappealable judgment to have resulted directly from the gross negligence or
willful misconduct of the party seeking indemnification therefor or (ii) result
from a claim brought by any Credit Party against an indemnitee for breach in bad
faith of the  obligations under this Agreement or the other Loan
Documents of the party seeking indemnification if such Credit Party has obtained
a final and nonappealable judgment in its favor on such claim as determined by a
court of competent jurisdiction.

     

    SECTION
15.4 Set-off

     

    If an
Event of Default shall have occurred and be continuing, each Lender, the Issuing
Lender, the Canadian Dollar Lender, the Swingline Lender and each of their
respective Affiliates is hereby authorized at any time and from time to time, to
the fullest extent permitted by Applicable Law, to set off and apply any and all
deposits (general or special, time or demand, provisional or final, in whatever
currency) at any time held and other obligations (in whatever currency) at any
time owing by such Lender, the Issuing Lender, the Canadian Dollar Lender, the
Swingline Lender or any such Affiliate to or for the credit or the account of
the Borrowers or any other Credit Party against any and all of the obligations
of the Borrowers or such Credit Party now or hereafter existing under this
Agreement or any other Loan Document to such Lender, the Issuing Lender, the
Canadian Dollar Lender or the Swingline Lender, irrespective of whether or not
such Lender, the Issuing Lender, the Canadian Dollar Lender or the Swingline
Lender shall have made any demand under this Agreement or any other Loan
Document and although such obligations of the Borrowers or such Credit Party may
be contingent or unmatured or are owed to a branch or office of such Lender, the
Issuing Lender, the Canadian Dollar Lender or the Swingline Lender different
from the branch or office holding such deposit or obligated on such
indebtedness.  The rights of each Lender, the Issuing Lender, the
Canadian Dollar Lender, the Swingline Lender and their respective Affiliates
under this Section are in addition to other rights and remedies (including other
rights of setoff) that such Lender, the Issuing Lender, the Canadian Dollar
Lender, the Swingline Lender or their respective Affiliates may
have.  Each Lender, the Issuing Lender, the Canadian Dollar Lender and
the Swingline Lender agrees to notify the Borrowers and the Administrative Agent
promptly after any such setoff and application; provided that the failure to
give such notice shall not affect the validity of such setoff and
application.

     

     

    
      
        
        

      

      
        105

        
          

        

      

      
        
        

      

    

    SECTION
15.5 Governing
Law

     

    This
Agreement and the other Loan Documents, unless otherwise expressly set forth
therein, shall be governed by, construed and enforced in  accordance
with the laws of the State of North Carolina, without reference to the conflicts
or choice of law principles thereof.

     

    SECTION
15.6 Jurisdiction and
Venue

     

     

    (a) Jurisdiction.  The
Borrowers hereby irrevocably consent to the personal jurisdiction of the state
and federal courts located in Mecklenburg County, North Carolina (and any courts
from which an appeal from any of such courts must or may be taken), in any
action, claim or other proceeding arising out of any dispute in connection with
this Agreement and the other Loan Documents, any rights or obligations hereunder
or thereunder, or the performance of such rights and obligations.  The
Borrowers hereby irrevocably consent to the service of a summons and complaint
and other process in any action, claim or proceeding brought by the
Administrative Agent or any Lender in connection with this Agreement or the
other Loan Documents, any rights or obligations hereunder or thereunder, or the
performance of such rights and obligations, on behalf of itself or its property,
in the manner specified in Section
15.1.  Nothing in this Section shall affect the right of the
Administrative Agent or any Lender to serve legal process in any other manner
permitted by Applicable Law or affect the right of the Administrative Agent or
any Lender to bring any action or proceeding against the Borrowers or their
respective properties in the courts of any other jurisdictions.

     

    (b) Venue

     

    .  The
Borrowers hereby irrevocably waive any objection they may have now or in the
future to the laying of venue in the aforesaid jurisdiction in any action, claim
or other proceeding arising out of or in connection with this Agreement, any
other Loan Document or the rights and obligations of the parties hereunder or
thereunder.  The Borrowers irrevocably waive, in connection with such
action, claim or proceeding, any plea or claim that the action, claim or
proceeding has been brought in an inconvenient forum.

     

    SECTION
15.7 Binding Arbitration; Waiver
of Jury Trial

     

     

    
      
        
        

      

      
        106

        
          

        

      

      
        
        

      

    

     

    (a) Binding
Arbitration.  Upon demand of any party, whether made before or
after institution of any judicial proceeding, any dispute, claim or controversy
arising out of, connected with or relating to this Agreement or any other Loan
Document (“Disputes”), between
or among parties hereto and to the other Loan Documents shall be resolved by
binding arbitration as provided herein.  Institution of a judicial
proceeding by a party does not waive the right of that party to demand
arbitration hereunder.  Disputes may include, without limitation, tort
claims, counterclaims, claims brought as class actions, claims arising from Loan
Documents executed in the future, disputes as to whether a matter is subject to
arbitration, or claims concerning any aspect of the past, present or future
relationships arising out of or connected with the Loan
Documents.  Arbitration shall be conducted under and governed by the
Commercial Financial Disputes Arbitration Rules (the “Arbitration Rules”)
of the American Arbitration Association (the “AAA”) and the Federal
Arbitration Act.  All arbitration hearings shall be conducted in
Charlotte, North Carolina.  The expedited procedures set forth in Rule
51, et seq. of the
Arbitration Rules shall be applicable to claims of less than
$1,000,000.  All applicable statutes of limitations shall apply to any
Dispute.  A judgment upon the award may be entered in any court having
jurisdiction.  Notwithstanding anything foregoing to the contrary, any
arbitration proceeding demanded hereunder shall begin within ninety (90) days
after such demand thereof and shall be concluded within one hundred twenty (120)
days after such demand.  These time limitations may not be extended
unless a party hereto shows cause for extension and then such extension shall
not exceed a total of sixty (60) days.  The panel from which all
arbitrators are selected shall be comprised of licensed attorneys selected from
the Commercial Financial Dispute Arbitration Panel of the AAA.  The
single arbitrator selected for expedited procedure shall be a retired judge from
the highest court of general jurisdiction, state or federal, of the state where
the hearing will be conducted.  The parties hereto do not waive any
applicable Federal or state substantive law except as provided
herein.  Notwithstanding the foregoing, this subsection shall not
apply to any Hedging Agreement.

     

    (b) Jury
Trial.  THE ADMINISTRATIVE AGENT, EACH LENDER AND THE BORROWERS
HEREBY ACKNOWLEDGE THAT BY AGREEING TO BINDING ARBITRATION THEY HAVE IRREVOCABLY
WAIVED THEIR RESPECTIVE RIGHTS TO A JURY TRIAL WITH RESPECT TO ANY ACTION, CLAIM
OR OTHER PROCEEDING ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THIS
AGREEMENT, THE NOTES OR THE OTHER LOAN DOCUMENTS, ANY RIGHTS OR OBLIGATIONS
HEREUNDER OR THEREUNDER, OR THE PERFORMANCE OF SUCH RIGHTS AND
OBLIGATIONS.

     

    (c) Preservation of Certain
Remedies.  Notwithstanding the preceding binding arbitration
provisions, the parties hereto and the other Loan Documents preserve, without
diminution, certain remedies that such Persons may employ or exercise freely,
either alone, in conjunction with or during a Dispute.  Each such
Person shall have and hereby reserves the right to proceed in any court of
proper jurisdiction or by self help to exercise or prosecute the following
remedies, as applicable:  (i) all rights to foreclose against any real
or personal property or other security by exercising a power of sale granted in
the Loan Documents or under Applicable Law or by judicial foreclosure and sale,
including a proceeding to confirm the sale, (ii) all rights of self help
including peaceful occupation of property and collection of rents, set off, and
peaceful possession of property, (iii) obtaining provisional or ancillary
remedies including injunctive relief, sequestration, garnishment, attachment,
appointment of receiver and in filing an involuntary bankruptcy proceeding, and
(iv) when applicable, a judgment by confession of
judgment.  Preservation of these remedies does not limit the power of
an arbitrator to grant similar remedies that may be requested by a party in a
Dispute.

     

    
      
        
        

      

      
        107

        
          

        

      

      
        
        

      

    

     

    SECTION
15.8 Reversal of
Payments

     

    To the
extent a Borrower makes a payment or payments to the Administrative Agent for
the ratable benefit of the Lenders or the Administrative Agent receives any
payment or proceeds of the collateral which payments or proceeds or any part
thereof are subsequently invalidated, declared to be fraudulent or preferential,
set aside and/or required to be repaid to a trustee, receiver or any other party
under any bankruptcy law, state, provincial or federal law, common law or
equitable cause, then, to the extent of such payment or proceeds repaid, the
Obligations or part thereof intended to be satisfied shall be revived and
continued in full force and effect as if such payment or proceeds had not been
received by the Administrative Agent.

     

    SECTION
15.9 Injunctive Relief; Punitive
Damages

     

     

    (a) The
Borrowers recognize that, in the event the Borrowers fail to perform, observe or
discharge any of their obligations or liabilities under this Agreement, any
remedy of law may prove to be inadequate relief to the Administrative and the
Lenders. Therefore, the Borrowers agree that the Administrative Agent and the
Lenders, at the Administrative Agent’s or the Required Lenders’ option, shall be
entitled to temporary and permanent injunctive relief in any such case without
the necessity of proving actual damages.

     

    (b) The
Administrative Agent, the Lenders and the US Borrower (on behalf of itself and
the Credit Parties) hereby agree that no such Person shall have a remedy of
punitive, exemplary or consequential damages against any other party to a Loan
Document and each such Person hereby waives any right or claim to punitive or
exemplary damages that they may now have or may arise in the future in
connection with any Dispute, whether such Dispute is resolved through
arbitration or judicially.

     

    SECTION
15.10 Accounting
Matters

     

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

     

    
      
        
        

      

      
        108

        
          

        

      

      
        
        

      

    

     

    SECTION
15.11 Successors and Assigns;
Participations

     

     

    (a) Successors and Assigns
Generally.  The provisions of this Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns permitted hereby, except that no Borrower nor any other
Credit Party may assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of the Administrative Agent and each
Lender and no Lender may assign or otherwise transfer any of its rights or
obligations hereunder except (i) to an Eligible Assignee in accordance with the
provisions of subsection (b) of this Section, (ii) by way of participation in
accordance with the provisions of subsection (d) of this Section or (iii) by way
of pledge or assignment of a security interest subject to the restrictions of
subsection (f) of this Section (and any other attempted assignment or transfer
by any party hereto shall be null and void).  Nothing in this
Agreement, expressed or implied, shall be construed to confer upon any Person
(other than the parties hereto, their respective successors and assigns
permitted hereby, Participants to the extent provided in subsection (d) of this
Section and, to the extent expressly contemplated hereby, the Related Parties of
each of the Administrative Agent and the Lenders) any legal or equitable right,
remedy or claim under or by reason of this Agreement.

     

    (b) Assignments by
Lenders.  Any Lender may at any time assign to one or more
Eligible Assignees all or a portion of its rights and obligations under this
Agreement (including all or a portion of its Commitment and the Loans at the
time owing to it); provided
that

     

    (i) except in
the case of an assignment of the entire remaining amount of the assigning
Lender’s Commitment and the Loans at the time owing to it or in the case of an
assignment to a Lender or an Affiliate of a Lender or an Approved Fund with
respect to a Lender, the aggregate amount of the Commitment (which for this
purpose includes Loans outstanding thereunder) or, if the applicable Commitment
is not then in effect, the principal outstanding balance of the Loans of the
assigning Lender subject to each such assignment (determined as of the date the
Assignment and Assumption with respect to such assignment is delivered to the
Administrative Agent or, if “Trade Date” is specified in the Assignment and
Assumption, as of the Trade Date) shall not be less than $5,000,000, in the case
of any assignment, unless such assignment is made to an existing Lender, to an
Affiliate thereof, or to an Approved Fund, in which case no minimum amount shall
apply, unless each of the Administrative Agent and, so long as no Default or
Event of Default has occurred and is continuing, the US Borrower otherwise
consent (each such consent not to be unreasonably withheld or delayed); provided that the US
Borrower shall be deemed to have given its consent ten (10) Business Days after
the date written notice thereof has been delivered by the assigning Lender
(through the Administrative Agent) unless such consent is expressly refused by
the US Borrower prior to such tenth (10th)
Business Day;

     

    (ii) each
partial assignment shall be made as an assignment of a proportionate part of all
the assigning Lender’s rights and obligations under this Agreement with respect
to the Loan or the Commitment assigned;

     

    (iii) any
assignment of a Revolving Credit Commitment must be approved by the
Administrative Agent, the Canadian Dollar Lender, the Swingline Lender and the
Issuing Lender unless the Person that is the proposed assignee is itself a
Lender with a Revolving Credit Commitment (whether or not the proposed assignee
would otherwise qualify as an Eligible Assignee); and

     

    (iv) the
parties to each assignment shall execute and deliver to the Administrative Agent
an Assignment and Assumption, together with a processing and recordation fee of
$3,500, and the Eligible
Assignee, if it shall not be a Lender, shall deliver to the Administrative Agent
an Administrative Questionnaire.

     

    
      
        
        

      

      
        109

        
          

        

      

      
        
        

      

    

     

    Subject
to acceptance and recording thereof by the Administrative Agent pursuant to
subsection (c) of this Section, from and after the effective date specified in
each Assignment and Assumption, the Eligible Assignee thereunder shall be a
party to this Agreement and, to the extent of the interest assigned by such
Assignment and Assumption, have the rights and obligations of a Lender under
this Agreement, and the assigning Lender thereunder shall, to the extent of the
interest assigned by such Assignment and Assumption, be released from its
obligations under this Agreement (and, in the case of an Assignment and
Assumption covering all of the assigning Lender’s rights and obligations under
this Agreement, such Lender shall cease to be a party hereto) but shall continue
to be entitled to the benefits of Sections 5.8, 5.9, 5.10, 5.11 and 15.3 with respect to
facts and circumstances occurring prior to the effective date of such
assignment.  Any assignment or transfer by a Lender of rights or
obligations under this Agreement that does not comply with this subsection shall
be treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with subsection (d)
of this Section.

     

    (c) Register.  The
Administrative Agent, acting solely for this purpose as an agent of the US
Borrower, shall maintain at one of its offices in Charlotte, North Carolina, a
copy of each Assignment and Assumption and each Lender Addition and
Acknowledgement Agreement delivered to it and a register for the recordation of
the names and addresses of the Lenders, and the Commitments of, and principal
amounts of the Loans owing to, each Lender pursuant to the terms hereof from
time to time (the “Register”).  The
entries in the Register shall be conclusive, and the US Borrower, the
Administrative Agent and the Lenders may treat each Person whose name is
recorded in the Register pursuant to the terms hereof as a Lender hereunder for
all purposes of this Agreement, notwithstanding notice to the
contrary.  The Register shall be available for inspection by the US
Borrower and any Lender, solely to the extent of any entries applicable to such
Lender, at any reasonable time and from time to time upon reasonable prior
notice.

     

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

     

    Any
agreement or instrument pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of any provision
of this Agreement; provided that such
agreement or instrument may provide that such Lender will not, without the
consent of the Participant, agree to any amendment, modification or waiver
described in the Section 15.2 that
directly affects such Participant and could not be effected by a vote of the
Required Lenders.  Subject to subsection (e) of this Section, the
Borrowers agree that each Participant shall be entitled to the benefits of Sections 5.8, 5.9, 5.10 and 5.11 to the same
extent as if it were a Lender and had acquired its interest by assignment
pursuant to subsection (b) of this Section.  To the extent permitted
by law, each Participant also shall be entitled to the benefits of Section 15.4 as
though it were a Lender, provided such Participant agrees to be subject to Section 5.6 as though
it were a Lender.

     

    
      
        
        

      

      
        110

        
          

        

      

      
        
        

      

    

     

    (e) Limitations upon Participant
Rights.  A Participant shall not be entitled to receive any
greater payment under Sections 5.10 and
5.11 than the applicable
Lender would have been entitled to receive with respect to the participation
sold to such Participant, unless the sale of the participation to such
Participant is made with the US Borrower’s prior written consent.  A
Participant that would be a Foreign Lender if it were a Lender shall not be
entitled to the benefits of Section 5.11 unless
the US Borrower is notified of the participation sold to such Participant and
such Participant agrees, for the benefit of the US Borrower, to comply with
Section 5.11(e)
as though it were a Lender.

     

    (f) Certain
Pledges.  Any Lender may at any time pledge or assign a
security interest in all or any portion of its rights under this Agreement to
secure obligations of such Lender, including without limitation any pledge or
assignment to secure obligations to a Federal Reserve Bank; provided that no such
pledge or assignment shall release such Lender from any of its obligations
hereunder or substitute any such pledgee or assignee for such Lender as a party
hereto.

     

    SECTION
15.12 Confidentiality

     

    Each of
the Administrative Agent and the Lenders agrees to maintain the confidentiality
of the Information (as defined below), except that Information may be disclosed
(a) to its Affiliates and to its Affiliates’ respective partners, directors,
officers, employees, agents, advisors and other representatives (it being
understood that the Persons to whom such disclosure is made will be informed of
the confidential nature of such Information and instructed to keep such
Information confidential), (b) to the extent requested by any regulatory
authority purporting to have jurisdiction over it (including any self-regulatory
authority, such as the National Association of Insurance Commissioners), (c) to
the extent required by Applicable Law or regulations or by any subpoena or
similar legal process, (d) to any other party hereto, (e) in connection with the
exercise of any remedies under this Agreement or under any other Loan Document
(or any Hedging Agreement with a Lender or the Administrative Agent) or any
action or proceeding relating to this Agreement or any other Loan Document (or
any Hedging Agreement with a Lender or the Administrative Agent) or the
enforcement of rights hereunder or thereunder, (f) subject to an agreement
containing provisions substantially the same as those of this Section, to (i)
any assignee of or Participant in, or any prospective assignee of or Participant
in, any of its rights or obligations under this Agreement, Participant or
proposed Participant or (ii) any actual or prospective counterparty (or its
advisors) to any swap or derivative transaction relating to any Borrower and its
obligations, (g) with the consent of the US Borrower, (h) to Gold Sheets and other
similar bank trade publications, such information to consist of deal terms and
other information customarily found in such publications, or (i) to the extent
such Information (x) becomes publicly available other than as a result of a
breach of this Section or (y) becomes available to the Administrative Agent or
any Lender or any of their respective Affiliates on a nonconfidential basis from
a source other than the Borrowers.  For purposes of this Section,
“Information”
means all information received from any Credit Party relating to any Credit
Party or any of their respective businesses, other than any such information
that is available to the Administrative Agent or any Lender on a nonconfidential
basis prior to disclosure by any Credit Party; provided that, in the
case of information received from a Credit Party after the Closing Date, such
information is clearly identified at the time of delivery as
confidential.  Any Person required to maintain the confidentiality of
Information as provided in this Section shall be considered to have complied
with its 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.

     

    
      
        
        

      

      
        111

        
          

        

      

      
        
        

      

    

     

    SECTION
15.13 Performance of
Duties

     

    Each of
the Credit Party’s obligations under this Agreement and each of the other Loan
Documents shall be performed by such Credit Party at its sole cost and
expense.

     

    SECTION
15.14 All Powers Coupled with
Interest

     

    All
powers of attorney and other authorizations granted to the Lenders, the
Administrative Agent and any Persons designated by the Administrative Agent or
any Lender pursuant to any provisions of this Agreement or any of the other Loan
Documents shall be deemed coupled with an interest and shall be irrevocable so
long as any of the Obligations remain unpaid or unsatisfied, any of the
Commitments remain in effect or the Credit Facility has not been
terminated.

     

    SECTION
15.15 Survival of
Indemnities

     

    Notwithstanding
any termination of this Agreement, the indemnities to which the Administrative
Agent and the Lenders are entitled under the provisions of this Article XV and any
other provision of this Agreement and the other Loan Documents shall continue in
full force and effect and shall protect the Administrative Agent and the Lenders
against events arising after such termination as well as before.

     

    SECTION
15.16 Titles and
Captions

     

    Titles
and captions of Articles, Sections and subsections in, and the table of contents
of, this Agreement are for convenience only, and neither limit nor amplify the
provisions of this Agreement.

     

    SECTION
15.17 Severability of
Provisions

     

    Any
provision of this Agreement or any other Loan Document which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
only to the extent of such prohibition or unenforceability without invalidating
the remainder of such provision or the remaining provisions hereof or thereof or
affecting the validity or enforceability of such provision in any other
jurisdiction.

     

    SECTION
15.18 Counterparts

     

    This
Agreement may be executed in any number of counterparts and by different parties
hereto in separate counterparts, each of which when so executed shall be deemed
to be an original and shall be binding upon all parties, their successors and
assigns, and all of which taken together shall constitute one and the same
agreement.

     

    SECTION
15.19 Integration

     

    This
Agreement, together with the other Loan Documents, comprises the complete and
integrated agreement of the parties on the subject matter hereof and thereof and
supersedes all prior agreements, written or oral, on such subject
matter.  In the event of any conflict between the provisions of this
Agreement and those of any other Loan Document, the provisions of this Agreement
shall control; provided that the
inclusion of supplemental rights or remedies in favor of the Administrative
Agent or the Lenders in any other Loan Document shall not be deemed a conflict
with this Agreement.  Each Loan Document was drafted with the joint
participation of the respective parties thereto and shall be construed neither
against nor in favor of any party, but rather in accordance with the fair
meaning thereof.

     

    
      
        
        

      

      
        112

        
          

        

      

      
        
        

      

    

     

    SECTION
15.20 Term of
Agreement

     

    This
Agreement shall remain in effect from the Closing Date through and including the
date upon which all Obligations arising hereunder or under any other Loan
Document shall have been indefeasibly and irrevocably paid and satisfied in full
and all Commitments have been terminated.  No termination of this
Agreement shall affect the rights and obligations of the parties hereto arising
prior to such termination or in respect of any provision of this Agreement which
survives such termination.

     

    SECTION
15.21 Advice of Counsel, No Strict
Construction

     

    Each of
the parties represents to each other party hereto that it has discussed this
Agreement with its counsel.  The parties hereto have participated
jointly in the negotiation and drafting of this Agreement.  In the
event an ambiguity or question of intent or interpretation arises, this
Agreement shall be construed as if drafted jointly by the parties hereto and no
presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any provisions of this Agreement.

     

    SECTION
15.22 Inconsistencies with Other
Documents; Independent Effect of Covenants

     

     

    (a) In the
event there is a conflict or inconsistency between this Agreement and any other
Loan Document, the terms of this Agreement shall control; provided that any
provision of the Security Documents which imposes additional burdens on any
Borrower or its Subsidiaries or further restricts the rights of any Borrower or
its Subsidiaries or gives the Administrative Agent or Lenders additional rights
shall not be deemed to be in conflict or inconsistent with this Agreement and
shall be given full force and effect.

     

    (b) The
Borrowers expressly acknowledge and agree that each covenant contained in Articles IX, X or XI hereof shall be
given independent effect.  Accordingly, the Borrowers shall not engage
in any transaction or other act otherwise permitted under any covenant contained
in Articles IX,
X or XI if, before or
after giving effect to such transaction or act, the Borrowers shall or would be
in breach of any other covenant contained in Articles IX, X or XI.

     

    SECTION
15.23 USA Patriot
Act

     

    The
Administrative Agent and each Lender hereby notifies the Borrowers that pursuant
to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed
into law October 26, 2001)) (the “Act”), it is required
to obtain, verify and record information that identifies the Borrowers and
Subsidiary Guarantors, which information includes the name and address of each
Borrower and Subsidiary Guarantor and other information that will allow such
Lender to identify such Borrower or Subsidiary Guarantor in accordance with the
Act.

     

    SECTION
15.24 Amendment and Restatement;
No Novation

     

    This
Agreement constitutes an amendment and restatement of the Existing Credit
Agreement, as amended, effective from and after the Closing Date.  The
execution and delivery of this Agreement shall not constitute a novation of any
indebtedness or other obligations owing to the Lenders or the Administrative
Agent under the Existing Credit Agreement based on facts or events occurring or
existing prior to the execution and delivery of this Agreement.

    

    [Signature
Pages Follow]

     

    
      
        
                                                                                                                                                  

        

         

      

      
        113

        
          

        

      

      
         

      

    

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

    

    

                                  POOL CORPORATION, as US
Borrower

    

    

                                  By:             /s/
Mark W.
Joslin                                                                           

                                 Name: Mark W.
Joslin                                                                    

                                 Title:   Vice President and
CFO                                                                    

    

    

                                  SCP DISTRIBUTORS INC., as
Canadian Borrower

    

    

                                  By:             /s/
Mark W.
Joslin                                                                           

                                 Name: Mark W.
Joslin                                                                    

                                 Title:   Secretary/Treasurer                                                                    

    

    

    

    

    

    

    
      
        
          

           

        

         

      

      
         

        
          

        

      

      
         

      

    

     

     

    

    
                                                                    AGENTS AND LENDERS:

       

      
                                                                      WACHOVIA BANK, NATIONAL
ASSOCIATION,

        
                                                                        as Administrative Agent,
Swingline Lender, Issuing Lender and Lender

        

      

                                  By:             /s/
Mark S.
Supple                                                                           

                                 Name: Mark S.
Supple                                                                    

                                 Title:   Vice
President                                                                    

    

    

    

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

                                  WACHOVIA CAPITAL FINANCE
CORPORATION (CANADA), 

                                  as Canadian Dollar
Lender

    

    

                                  By:             /s/
Raymond Eghobamien

                                 Name: Raymond
Eghobamien                                                                    

                                 Title:   Vice
President                                                                    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
                                                                    JPMORGAN CHASE BANK, N.A., as
Lender

    

                                  By:             /s/
John A.
Horst                                                                           

                                 Name: John A.
Horst                                                                    

                                 Title:   Vice
President                                                                    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

                                  WELLS FARGO BANK, N.A., as
Lender

    

    

                                  By:             /s/
Warren R.
Ross                                                                           

                                 Name: Warren R.
Ross                                                                    

                                 Title:   Vice
President                                                                    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

                                  REGIONS BANK, as
Lender

    

    

                                  By:             /s/
Jorge E.
Goris                                                                           

                                 Name: Jorge E.
Goris                                                                    

                                 Title:   Senior Vice
President                                                                    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

                                  CAPITAL ONE, N.A., as
Lender

    

    

                                  By:             /s/
Katharine G.
Kay                                                                           

                                 Name: Katharine G.
Kay                                                                    

                                 Title:   Senior Vice
President                                                                    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

                                  BANK OF AMERICA, N.A., as
Lender

    

    

                                  By:             /s/
Gary L.
Mingle                                                                           

                                 Name: Gary L.
Mingle                                                                    

                                 Title:   Senior Vice
President                                                                    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

                                  COMERICA BANK, as
Lender

    

    

                                  By:             /s/
De Von
Lang                                                                           

                                 Name: De Von
Lang                                                                    

                                 Title:   Corporate Banking
Officerex10_49.htm

    

      EXHIBIT 10.49

      

      
        

        

      

      

      AMENDED
AND RESTATED SUBSIDIARY GUARANTY AGREEMENT

      

      dated as
of December 20, 2007

      

      

      by and
among

      

      

      certain
Subsidiaries of POOL CORPORATION,

      as
Subsidiary Guarantors,

      

      in favor
of

      

      WACHOVIA
BANK, NATIONAL ASSOCIATION

      as
Administrative Agent

      

      
 

      
        

        

      

      
         

        
           

          
          

        

        
           

        

      

      
        	
                TABLE
      OF CONTENTS

              
	 
      	 
      	 
      
	
                ARTICLE
      I  DEFINED
      TERMS

              	
                1

              
	
                SECTION
      1.1

              	
                Definitions

              	
                1

              
	
                SECTION
      1.2

              	
                Other Definitional
      Provisions

              	
                2

              
	 
      	 
      	 
      
	
                ARTICLE
      II   GUARANTY

              	
                2

              
	
                SECTION
      2.1

              	
                Guaranty

              	
                2

              
	
                SECTION
      2.2

              	
                Bankruptcy Limitations
      on each Subsidiary Guarantor

              	
                3

              
	
                SECTION
      2.3

              	
                Agreements for
      Contribution

              	
                3

              
	
                SECTION
      2.4

              	
                Nature of
      Guaranty

              	
                4

              
	
                SECTION
      2.5

              	
                Waivers

              	
                5

              
	
                SECTION
      2.6

              	
                Modification of Loan
      Documents, etc

              	
                6

              
	
                SECTION
      2.7

              	
                Demand by the
      Administrative Agent

              	
                7

              
	
                SECTION
      2.8

              	
                Remedies

              	
                8

              
	
                SECTION
      2.9

              	
                Benefits of
      Guaranty

              	
                8

              
	
                SECTION
      2.10

              	
                Termination;
      Reinstatement

              	
                8

              
	
                SECTION
      2.11

              	
                Payments

              	
                9

              
	 
      	 
      	 
      
	
                ARTICLE
      III  REPRESENTATIONS AND
      WARRANTIES

              	
                9

              
	
                SECTION
      3.1

              	
                Existence

              	
                9

              
	
                SECTION
      3.2

              	
                Authorization of
      Agreement; Enforceability

              	
                9

              
	
                SECTION
      3.3

              	
                No Conflict;
      Consents

              	
                10

              
	
                SECTION
      3.4

              	
                Litigation

              	
                10

              
	
                SECTION
      3.5

              	
                Title to Properties;
      Liens

              	
                10

              
	
                SECTION
      3.6

              	
                Solvency

              	
                10

              
	
                SECTION
      3.7

              	
                Compliance with the
      Credit Agreement

              	
                11

              
	 
      	 
      	 
      
	
                ARTICLE
      IV  MISCELLANEOUS

              	
                11

              
	
                SECTION
      4.1

              	
                Amendments, Waivers
      and Consents

              	
                11

              
	
                SECTION
      4.2

              	
                Notices

              	
                11

              
	
                SECTION
      4.3

              	
                Enforcement Expenses,
      Indemnification

              	
                11

              
	
                SECTION
      4.4

              	
                Governing
      Law

              	
                12

              
	
                SECTION
      4.5

              	
                Jurisdiction and
      Venue

              	
                12

              
	
                SECTION
      4.6

              	
                Binding Arbitration;
      Waiver of Jury Trial

              	
                13

              
	
                SECTION
      4.7

              	
                Injunctive Relief;
      Punitive Damages

              	
                14

              
	
                SECTION
      4.8

              	
                No Waiver by Course of
      Conduct, Cumulative Remedies

              	
                14

              
	
                SECTION
      4.9

              	
                Successors and
      Assigns

              	
                15

              
	
                SECTION
      4.10

              	
                Severability

              	
                15

              
	
                SECTION
      4.11

              	
                Titles and
      Captions

              	
                15

              
	
                SECTION
      4.12

              	
                Counterparts

              	
                15

              
	
                SECTION
      4.13

              	
                Set-Off

              	
                15

              
	
                SECTION
      4.14

              	
                Integration

              	
                16

              
	
                SECTION
      4.15

              	
                Acknowledgements

              	
                16

              
	
                SECTION
      4.16

              	
                Releases

              	
                16

              
	
                SECTION
      4.17

              	
                Additional Subsidiary
      Guarantors

              	
                16

              
	
                SECTION
      4.18

              	
                No Strict
      Construction

              	
                16

              
	
                SECTION
      4.19

              	
                Powers Coupled with an
      Interest

              	
                17

              
	
                SECTION
      4.20

              	
                Secured
      Parties

              	
                17

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

       

      AMENDED AND RESTATED SUBSIDIARY
GUARANTY AGREEMENT, dated as of December 20, 2007 (as amended, restated,
supplemented or otherwise modified from time to time, this “Guaranty”), made by
certain Domestic Subsidiaries (such Subsidiaries, collectively, the “Subsidiary
Guarantors”, each, a “Subsidiary
Guarantor”) of POOL CORPORATION (formerly known as SCP Pool Corporation),
a Delaware corporation (the “US Borrower”), in
favor of WACHOVIA BANK, NATIONAL ASSOCIATION, as Administrative Agent (in such
capacity, the “Administrative
Agent”) for the ratable benefit of the Secured Parties (as defined
below).

      

      STATEMENT OF
PURPOSE

      

      Pursuant to the terms of the Amended
and Restated Credit Agreement, dated of even date herewith (as amended,
restated, supplemented or otherwise modified from time to time, the “Credit Agreement”),
by and among the US Borrower, SCP Distributors, Inc., a company organized under
the laws of Ontario (the “Canadian Borrower”
and together with the US Borrower, the “Borrowers”), the
financial institutions from time to time parties thereto (the “Lenders”) and the
Administrative Agent, the Lenders have agreed to make Extensions of Credit to
the Borrowers upon the terms and subject to the conditions set forth
therein.

      

      The Borrowers and the Subsidiary
Guarantors, though separate legal entities, comprise one integrated financial
enterprise, and all Extensions of Credit to the Borrowers will inure, directly
or indirectly, to the benefit of each of the Subsidiary Guarantors.

      

      It is a condition precedent to the
obligation of the Lenders to make their respective Extensions of Credit to the
Borrowers under the Credit Agreement that the Subsidiary Guarantors shall have
executed and delivered this Guaranty to the Administrative Agent, for the
ratable benefit of (a) the Administrative Agent and the Lenders and (b) any
party to a Hedging Agreement that was (i) a Lender or (ii) an Affiliate of a
Lender, in each case, at the time such Hedging Agreement was executed
(collectively, the “Secured
Parties”).

      

      NOW, THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged by
the parties hereto, and to induce the Administrative Agent and the Lenders to
enter into the Credit Agreement and to induce the Lenders to make their
respective Extensions of Credit to the Borrowers thereunder, each Subsidiary
Guarantor hereby agrees with the Administrative Agent, for the ratable benefit
of the Secured Parties, as follows:

      

      ARTICLE
I

       

      

       

      DEFINED
TERMS

       

      

      SECTION 1.1    Definitions.  The
following terms when used in this Guaranty shall have the meanings assigned to
them below:

      

      “Applicable Insolvency
Laws” means all Applicable Laws governing bankruptcy, reorganization,
arrangement, adjustment of debts, relief of debtors, dissolution, insolvency,
fraudulent transfers or conveyances or other similar laws (including, without
limitation, 11 U.S.C. Sections 544, 547, 548 and 550 and other “avoidance”
provisions of Title 11 of the United States Code, as amended or
supplemented).

      

      
        
          
          

        

        
          
          

          
            

          

        

         

      

      “Guaranteed
Obligations” has the meaning set forth in Section
2.1.

      

      “Guaranty” has the
meaning set forth in the Preamble.

      

      SECTION 1.2    Other Definitional
Provisions.  Capitalized terms used and not otherwise defined
in this Guaranty, including the preambles and recitals hereof, shall have the
meanings ascribed to them in the Credit Agreement.  In the event of a
conflict between capitalized terms defined herein and in the Credit Agreement,
the Credit Agreement shall control.  The words “hereof,” “herein”,
“hereto” and “hereunder” and words of similar import when used in this Guaranty
shall refer to this Guaranty as a whole and not to any particular provision of
this Guaranty, and Section references are to this Guaranty unless otherwise
specified.  The meanings given to terms defined herein shall be
equally applicable to both the singular and plural forms of such
terms.

      

      ARTICLE
II

       

      GUARANTY

      

      SECTION 2.1    Guaranty.  Each
Subsidiary Guarantor hereby, jointly and severally with the other Subsidiary
Guarantors, unconditionally guarantees to the Administrative Agent, for the
ratable benefit of the Secured Parties, and their respective permitted
successors, endorsees, transferees and assigns, the prompt payment and
performance of all Obligations, in each case, whether primary or secondary
(whether by way of endorsement or otherwise), whether now existing or hereafter
arising, whether or not from time to time reduced or extinguished (except by
payment thereof) or hereafter increased or incurred, whether or not recovery may
be or hereafter becomes barred by the statute of limitations, whether
enforceable or unenforceable as against such Borrower, whether or not
discharged, stayed or otherwise affected by any Applicable Insolvency Law or
proceeding thereunder, whether created directly with the Administrative Agent or
any other Secured Party or acquired by the Administrative Agent or any other
Secured Party through assignment or endorsement or otherwise, whether matured or
unmatured, whether joint or several, as and when the same become due and payable
(whether at maturity or earlier, by reason of acceleration, mandatory repayment
or otherwise), in accordance with the terms of any such instruments evidencing
any such obligations, including all renewals, extensions or modifications
thereof (all of the foregoing being hereafter collectively referred to as the
“Guaranteed
Obligations”).

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      SECTION 2.2    Bankruptcy Limitations on
each Subsidiary Guarantor.  Notwithstanding
anything to the contrary contained in Section 2.1, it is
the intention of each Subsidiary Guarantor, the Administrative Agent and the
other Secured Parties that, in any proceeding involving the bankruptcy,
reorganization, arrangement, adjustment of debts, relief of debtors, dissolution
or insolvency or any similar proceeding with respect to any Subsidiary Guarantor
or its assets, the amount of such Subsidiary Guarantor’s obligations with
respect to the Guaranteed Obligations shall be equal to, but not in excess of,
the maximum amount thereof not subject to avoidance or recovery by operation of
Applicable Insolvency Laws after giving effect to Section
2.3.  To that end, but only in the event and to the extent that
after giving effect to Section 2.3 such
Subsidiary Guarantor’s obligations with respect to the Guaranteed Obligations or
any payment made pursuant to such Guaranteed Obligations would, but for the
operation of the first sentence of this Section 2.2, be
subject to avoidance or recovery in any such proceeding under Applicable
Insolvency Laws after giving effect to Section 2.3, the
amount of such Subsidiary Guarantor’s obligations with respect to the Guaranteed
Obligations shall be limited to the largest amount which, after giving effect
thereto, would not, under Applicable Insolvency Laws, render such Subsidiary
Guarantor’s obligations with respect to the Guaranteed Obligations unenforceable
or avoidable or otherwise subject to recovery under Applicable Insolvency
Laws.  To the extent any payment actually made pursuant to the
Guaranteed Obligations exceeds the limitation of the first sentence of this
Section 2.2 and
is otherwise subject to avoidance and recovery in any such proceeding under
Applicable Insolvency Laws, the amount subject to avoidance shall in all events
be limited to the amount by which such actual payment exceeds such limitation
and the Guaranteed Obligations, as limited by the first sentence of this Section 2.2, shall in
all events remain in full force and effect and be fully enforceable against such
Subsidiary Guarantor.  The first sentence of this Section 2.2 is
intended solely to preserve the rights of the Administrative Agent and the other
Secured Parties hereunder against such Subsidiary Guarantor in such proceeding
to the maximum extent permitted by Applicable Insolvency Laws and neither such
Subsidiary Guarantor, any Borrower, any other Subsidiary Guarantor nor any other
Person shall have any right or claim under such sentence that would not
otherwise be available under Applicable Insolvency Laws in such
proceeding.

      

      SECTION 2.3    Agreements for
Contribution.

      

      (a)           To
the extent any Subsidiary Guarantor is required, by reason of its obligations
hereunder, to pay to the Administrative Agent or any other Secured Party an
amount greater than the amount of value (as determined in accordance with
Applicable Insolvency Laws) actually made available to or for the benefit of
such Subsidiary Guarantor on account of the Credit Agreement, this Guaranty or
any other Loan Document, such Subsidiary Guarantor shall have an enforceable
right of contribution against the Borrowers and the remaining Subsidiary
Guarantors, and the Borrowers and the remaining Subsidiary Guarantors shall be
jointly and severally liable for repayment of the full amount of such excess
payment.  Subject only to the subordination provided in Section 2.3(d), such
Subsidiary Guarantor further shall be subrogated to any and all rights of the
Secured Parties against the Borrowers and the remaining Subsidiary Guarantors to
the extent of such excess payment.

      

      (b)           To
the extent that any Subsidiary Guarantor would, but for the operation of this
Section 2.3 and by reason of
its obligations hereunder or its obligations to other Subsidiary Guarantors
under this Section
2.3, be rendered insolvent for any purpose under Applicable Insolvency
Laws, each of the Subsidiary Guarantors hereby agrees to indemnify such
Subsidiary Guarantor and commits to make a contribution to such Subsidiary
Guarantor’s capital in an amount at least equal to the amount necessary to
prevent such Subsidiary Guarantor from having been rendered insolvent by reason
of the incurrence of any such obligations.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      

      (c)           To
the extent that any Subsidiary Guarantor would, but for the operation of this
Section 2.3, be
rendered insolvent under any Applicable Insolvency Law by reason of its
incurring of obligations to any other Subsidiary Guarantor under the foregoing
Sections 2.3(a)
and (b), such
Subsidiary Guarantor shall, in turn, have rights of contribution and indemnity,
to the full extent provided in the foregoing Sections 2.3(a) and
(b), against
the Borrowers and the remaining Subsidiary Guarantors, such that all obligations
of all of the Subsidiary Guarantors hereunder and under this Section 2.3 shall be
allocated in a manner such that no Subsidiary Guarantor shall be rendered
insolvent for any purpose under Applicable Insolvency Law by reason of its
incurrence of such obligations.

      

      (d)           Notwithstanding
any payment or payments by any of the Subsidiary Guarantors hereunder, or any
set-off or application of funds of any of the Subsidiary Guarantors by the
Administrative Agent or any other Secured Party, or the receipt of any amounts
by the Administrative Agent or any other Secured Party with respect to any of
the Guaranteed Obligations, none of the Subsidiary Guarantors shall be entitled
to be subrogated to any of the rights of the Administrative Agent or any other
Secured Party against the Borrowers or the other Subsidiary Guarantors or
against any collateral security held by the Administrative Agent or any other
Secured Party for the payment of the Guaranteed Obligations nor shall any of the
Subsidiary Guarantors seek any reimbursement from the Borrowers or any of the
other Subsidiary Guarantors in respect of payments made by such Subsidiary
Guarantor in connection with the Guaranteed Obligations, until all amounts owing
to the Administrative Agent and the other Secured Parties on account of the
Guaranteed Obligations are indefeasibly paid in full in cash and the Commitments
are terminated.  If any amount shall be paid to any Subsidiary
Guarantor on account of such subrogation rights at any time when all of the
Guaranteed Obligations shall not have been indefeasibly paid in full in cash and
the Commitments shall not have been terminated, such amount shall be held by
such Subsidiary Guarantor in trust for the Administrative Agent, segregated from
other funds of such Subsidiary Guarantor, and shall, forthwith upon receipt by
such Subsidiary Guarantor, be turned over to the Administrative Agent in the
exact form received by such Subsidiary Guarantor (duly endorsed by such
Subsidiary Guarantor to the Administrative Agent, if required) to be applied
against the Guaranteed Obligations, whether matured or unmatured, in such order
as set forth in the Credit Agreement.

      

      SECTION 2.4    Nature of
Guaranty.

      

      (a)           Each
Subsidiary Guarantor agrees that this Guaranty is a continuing, unconditional
guaranty of payment and performance and not of collection, and that its
obligations under this Guaranty shall be primary, absolute and unconditional,
irrespective of, and unaffected by:

      

      
        	
                (i)

              	
                the
      genuineness, validity, regularity, enforceability or any future amendment
      of, or change in, the Credit Agreement, any other Loan Document, any
      Hedging Agreement or any other agreement, document or instrument to which
      any Borrower, any Subsidiary Guarantor or any of their respective
      Subsidiaries or Affiliates is or may become a
  party;

              

      

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      
        	
                (ii)

              	
                the
      absence of any action to enforce this Guaranty, the Credit Agreement, any
      other Loan Document or any Hedging Agreement or the waiver or consent by
      the Administrative Agent or any other Secured Party with respect to any of
      the provisions of this Guaranty, the Credit Agreement, any other Loan
      Document or any Hedging Agreement;

              

      

      

      
        	
                (iii)

              	
                the
      existence, value or condition of, or failure to perfect its Lien against,
      any security for or other guaranty of the Guaranteed Obligations or any
      action, or the absence of any action, by the Administrative Agent or any
      other Secured Party in respect of such security or guaranty (including,
      without limitation, the release of any such security or
      guaranty);

              

      

      

      
        	
                (iv)

              	
                any
      structural change in, restructuring of or other similar organizational
      change of any Borrower, any Subsidiary Guarantor, any other guarantors or
      any of their respective Subsidiaries or Affiliates;
  or

              

      

      

      
        	
                (v)

              	
                any
      other action or circumstances which might otherwise constitute a legal or
      equitable discharge or defense of a surety or
  guarantor;

              

      

      

      it being
agreed by each Subsidiary Guarantor that, subject to the first sentence of Section 2.2, its
obligations under this Guaranty shall not be discharged until the final
indefeasible payment in cash and performance, in full, of the Guaranteed
Obligations and the termination of the Commitments, provided that a
Subsidiary Guarantor may be released from the Guaranteed Obligations pursuant to
Section 4.16 of
this Guaranty.

      

      (b)           Each
Subsidiary Guarantor represents, warrants and agrees that the Guaranteed
Obligations and its obligations under this Guaranty are not and shall not be
subject to any counterclaims, offsets or defenses of any kind against the
Administrative Agent, the other Secured Parties or the Borrowers whether now
existing or which may arise in the future.

      

      (c)           Each
Subsidiary Guarantor hereby agrees and acknowledges that the Guaranteed
Obligations, and any of them, shall conclusively be deemed to have been created,
contracted or incurred, or renewed, extended, amended or waived, in reliance
upon this Guaranty, and all dealings between any Borrower and any Subsidiary
Guarantor, on the one hand, and the Administrative Agent and the other Secured
Parties, on the other hand, likewise shall be conclusively presumed to have been
had or consummated in reliance upon this Guaranty.

      

      SECTION 2.5    Waivers.  To
the extent permitted by Applicable Law, each Subsidiary Guarantor expressly
waives all of the following rights and defenses (and agrees not to take
advantage of or assert any such right or defense):

      

      (a)           any
rights it may now or in the future have under any statute (including, without
limitation, North Carolina General Statutes Section 26-7, et seq. or similar
law), or at law or in equity, or otherwise, to compel the Administrative Agent
or any other Secured Party to proceed in respect of the Guaranteed Obligations
against any Borrower, any Subsidiary Guarantor or any other Person or against
any security for or other guaranty of the payment and performance of the
Guaranteed Obligations before proceeding against, or as a condition to
proceeding against, such Subsidiary Guarantor;

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      

      (b)           any
defense based upon the failure of the Administrative Agent or any other Secured
Party to commence an action in respect of the Guaranteed Obligations against any
Borrower, any Subsidiary Guarantor or any other Person or any security for the
payment and performance of the Guaranteed Obligations;

      

      (c)           any
right to insist upon, plead or in any manner whatever claim or take the benefit
or advantage of, any appraisal, valuation, stay, extension, marshalling of
assets or redemption laws, or exemption, whether now or at any time hereafter in
force, which may delay, prevent or otherwise affect the performance by such
Subsidiary Guarantor of its obligations under, or the enforcement by the
Administrative Agent or the other Secured Parties of this Guaranty;

      

      (d)           any
right of diligence, presentment, demand, protest and notice (except as
specifically required herein) of whatever kind or nature with respect to any of
the Guaranteed Obligations and waives, to the fullest extent permitted by
Applicable Law, the benefit of all provisions of Applicable Law which are or
might be in conflict with the terms of this Guaranty; and

      

      (e)           any
and all right to notice of the creation, renewal, extension or accrual of any of
the Guaranteed Obligations and notice of or proof of reliance by the
Administrative Agent or any other Secured Party upon, or acceptance of, this
Guaranty.

      

      Each Subsidiary Guarantor agrees that
any notice or directive given at any time to the Administrative Agent or any
other Secured Party which is inconsistent with any of the foregoing waivers
shall be null and void and may be ignored by the Administrative Agent or such
other Secured Party, and, in addition, may not be pleaded or introduced as
evidence in any litigation relating to this Guaranty for the reason that such
pleading or introduction would be at variance with the written terms of this
Guaranty, unless the Administrative Agent and the Required Lenders have
specifically agreed otherwise in writing.  The foregoing waivers are
of the essence of the transaction contemplated by the Credit Agreement, the
other Loan Documents and the Hedging Agreements and, but for this Guaranty and
such waivers, the Administrative Agent and the other Secured Parties would
decline to enter into the Credit Agreement, the other Loan Documents and the
Hedging Agreements.

      

      SECTION 2.6    Modification of Loan
Documents, etc.  Neither
the Administrative Agent nor any other Secured Party shall incur any liability
to any Subsidiary Guarantor as a result of any of the following, and none of the
following shall impair or release this Guaranty or any of the obligations of any
Subsidiary Guarantor under this Guaranty:

      

      (a)           any
change or extension of the manner, place or terms of payment of, or renewal or
alteration of all or any portion of, the Guaranteed Obligations;

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      

      (b)           any
action under or in respect of the Credit Agreement, any other Loan Document or
any Hedging Agreement in the exercise of any remedy, power or privilege
contained therein or available to any of them at law, in equity or otherwise, or
waiver or refraining from exercising any such remedies, powers or
privileges;

      

      (c)           any
amendment to, or modification of, in any manner whatsoever, the Credit
Agreement, any other Loan Document or any Hedging Agreement;

      

      (d)           any
extension or waiver of the time for performance by any Borrower, any Subsidiary
Guarantor or any other Person of, or compliance with, any term, covenant or
agreement on its part to be performed or observed under the Credit Agreement,
any other Loan Document or any Hedging Agreement, or waiver of such performance
or compliance or consent to a failure of, or departure from, such performance or
compliance;

      

      (e)           the
taking and holding of security or collateral for the payment of the Guaranteed
Obligations or the sale, exchange, release, disposal of, or other dealing with,
any property pledged, mortgaged or conveyed, or in which the Administrative
Agent or the other Secured Parties have been granted a Lien, to secure any
Indebtedness of any Borrower, any Subsidiary Guarantor or any other Person to
the Administrative Agent or the other Secured Parties;

      

      (f)           the
release of anyone who may be liable in any manner for the payment of any amounts
owed by any Borrower, any Subsidiary Guarantor or any other Person to the
Administrative Agent or any other Secured Party;

      

      (g)           any
modification or termination of the terms of any intercreditor or subordination
agreement pursuant to which claims of other creditors of any Borrower, any
Subsidiary Guarantor or any other Person are subordinated to the claims of the
Administrative Agent or any other Secured Party; or

      

      (h)           any
application of any sums by whomever paid or however realized to any Guaranteed
Obligations owing by any Borrower, any Subsidiary Guarantor or any other Person
to the Administrative Agent or any other Secured Party in such manner as the
Administrative Agent or any other Secured Party shall determine in its
reasonable discretion.

      

      SECTION 2.7    Demand by the Administrative
Agent.  In
addition to the terms set forth in this Article II and in no
manner imposing any limitation on such terms, if all or any portion of the then
outstanding Guaranteed Obligations  are declared to be immediately due
and payable, then the Subsidiary Guarantors shall, upon demand in writing
therefor by the Administrative Agent to the Subsidiary Guarantors, pay all or
such portion of the outstanding Guaranteed Obligations due hereunder then
declared due and payable.  Notwithstanding the foregoing, each
Subsidiary Guarantor agrees that, in the event of the dissolution or insolvency
of any Borrower or any Subsidiary Guarantor, or the inability or failure of any
Borrower or any Subsidiary Guarantor to pay debts as they become due, or an
assignment by any Borrower or any Subsidiary Guarantor for the benefit of
creditors, or the commencement of any case or proceeding in respect of any
Borrower or any Subsidiary Guarantor under bankruptcy, insolvency or similar
laws, and if such event shall occur at a time when any of the Guaranteed
Obligations may not then be due and payable, each Subsidiary Guarantor will pay
to the Administrative Agent, for the ratable benefit of the Secured Parties and
their respective successors, indorsees, transferees and assigns, forthwith the
full amount which would be payable hereunder by each Subsidiary Guarantor if all
such Guaranteed Obligations were then due and payable.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      

      SECTION 2.8    Remedies. 
Upon the
occurrence and during the continuance of any Event of Default, with the consent
of the Required Lenders, the Administrative Agent may, or upon the request of
the Required Lenders, the Administrative Agent shall, enforce against the
Subsidiary Guarantors their respective obligations and liabilities hereunder and
exercise such other rights and remedies as may be available to the
Administrative Agent hereunder, under the Credit Agreement, the other Loan
Documents, the Hedging Agreements or otherwise.

      

      

      SECTION 2.9    Benefits of
Guaranty.  The
provisions of this Guaranty are for the benefit of the Administrative Agent and
the other Secured Parties and their respective permitted successors,
transferees, endorsees and assigns, and nothing herein contained shall impair,
as between any Borrower, the Administrative Agent and the other Secured Parties,
the obligations of any Borrower under the Credit Agreement, the other Loan
Documents or the Hedging Agreements .  In the event all or any part of
the Guaranteed Obligations are transferred, endorsed or assigned by the
Administrative Agent or any other Secured Party to any Person or Persons as
permitted under the Credit Agreement, any reference to an “Administrative Agent”
or “Secured Party” herein shall be deemed to refer equally to such Person or
Persons.

      

      SECTION 2.10  Termination;
Reinstatement.

      

      (a)           Subject
to clause (c) below, this Guaranty shall remain in full force and effect until
all the Guaranteed Obligations and all the obligations of the Subsidiary
Guarantors shall have been indefeasibly paid in full in cash and the Commitments
terminated.

      

      (b)           No
payment made by any Borrower, any Subsidiary Guarantor or any other Person
received or collected by the Administrative Agent or any other Secured Party
from any Borrower, any Subsidiary Guarantor or any other Person by virtue of any
action or proceeding or any set-off or appropriation or application at any time
or from time to time in reduction of or in payment of the Guaranteed Obligations
shall be deemed to modify, reduce, release or otherwise affect the liability of
any Subsidiary Guarantor hereunder which shall, notwithstanding any such payment
(other than any payment made by such Subsidiary Guarantor in respect of the
obligations of the Subsidiary Guarantors or any payment received or collected
from such Subsidiary Guarantor in respect of the obligations of the Subsidiary
Guarantors), remain liable for the obligations of the Subsidiary Guarantors up to the maximum
liability of such Subsidiary Guarantor hereunder until the Guaranteed
Obligations and all the obligations of the Subsidiary Guarantors shall have been
indefeasibly paid in full in cash and the Commitments terminated.

      

      (c)           Each
Subsidiary Guarantor agrees that, if any payment made by any Borrower or any
other Person applied to the Guaranteed Obligations is at any time avoided,
annulled, set aside, rescinded, invalidated, declared to be fraudulent or
preferential or otherwise required to be refunded or repaid or is repaid in
whole or in part pursuant to a good faith settlement of a pending or threatened
avoidance claim, or the proceeds of any collateral are required to be refunded
by the Administrative Agent or any other Secured Party to any Borrower, its
estate, trustee, receiver or any other Person, including, without limitation,
any Subsidiary
Guarantor, under any Applicable Law or equitable cause, then, to the extent of
such payment or repayment, each Subsidiary Guarantor’s liability hereunder (and
any Lien or collateral securing such liability) shall be and remain in full
force and effect, as fully as if such payment had never been made, and, if prior
thereto, this Guaranty shall have been canceled or surrendered (and if any Lien
or collateral securing such Subsidiary Guarantor’s liability hereunder shall
have been released or terminated by virtue of such cancellation or surrender),
this Guaranty (and such Lien or collateral) shall be reinstated in full force
and effect, and such prior cancellation or surrender shall not diminish,
release, discharge, impair or otherwise affect the obligations of such
Subsidiary Guarantor in respect of the amount of such payment (or any Lien or
collateral securing such obligation).

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      

                   
 SECTION 2.11       Payments.  Payments
by the Subsidiary Guarantors shall be made to the Administrative Agent to be
credited and applied to the Guaranteed Obligations in accordance with Sections 5.4 and
13.4 of the
Credit Agreement, in immediately available Dollars or Canadian Dollars, as the
case may be, to an account designated by the Administrative Agent or at the
Administrative Agent’s Office or at any other address that may be specified in
writing from time to time by the Administrative Agent.

      

      ARTICLE
III

      

      REPRESENTATIONS
AND WARRANTIES

      

      To induce the Administrative Agent and
the other Secured Parties to enter into the Loan Documents and Hedging
Agreements and to make any Extensions of Credit, each Subsidiary Guarantor
hereby represents and warrants that:

      

      SECTION
3.1    Existence.  Such
Subsidiary Guarantor is duly organized, validly existing and in good standing
under the laws of the jurisdiction of its incorporation or formation, has the
power and authority to own its properties and to carry on its business as now
being and hereafter proposed to be conducted and is duly qualified and
authorized to do business in each jurisdiction in which the character of its
properties or the nature of its business requires such qualification and
authorization, except where the failure to be qualified or authorized,
individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect.  The jurisdictions in which such Subsidiary
Guarantor is organized and qualified to do business as of the Closing Date are
described on Schedule
7.1(a) to the Credit Agreement.

      

      SECTION
3.2    Authorization of
Agreement;
Enforceability. Such
Subsidiary Guarantor has the right, power and authority and has taken all
necessary corporate and other action to authorize the execution, delivery and
performance of this Guaranty in accordance with its terms.  This
Guaranty has been duly executed and delivered by the duly authorized officers of
such Subsidiary Guarantor and this Guaranty constitutes the legal, valid and
binding obligation of such Subsidiary Guarantor, enforceable in accordance with
its terms, except as such enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar state or federal debtor relief
laws from time to time in effect which affect the enforcement of creditors’
rights in general and the availability of equitable remedies.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      SECTION
3.3    No Conflict;
Consents.  The
execution, delivery and performance by such Subsidiary Guarantor of this
Guaranty, in accordance with its terms, and the transactions contemplated hereby
do not and will not, by the passage of time, the giving of notice or otherwise,
(a) require any Governmental Approval or violate any Applicable Law relating to
such Subsidiary Guarantor; (b) conflict with, result in a breach of or
constitute a default under the articles of incorporation, bylaws or other
organizational documents of such Subsidiary Guarantor or any indenture,
agreement or other instrument to which such Person is a party or by which any of
its properties may be bound or any Governmental Approval relating to such
Person, (c) result in or require the creation or imposition of any Lien upon or
with respect to any property now owned or hereafter acquired by such Subsidiary
Guarantor other than Liens arising under the Loan Documents or (d) require any
consent or authorization of, filing with, or other act in respect of, an
arbitrator or Governmental Authority and no consent of any other Person is
required in connection with the execution, delivery, performance, validity or
enforceability of this Guaranty.

      

      SECTION
3.4    Litigation.  Except
for matters existing on the Closing Date and set forth on Schedule 7.1(u) to
the Credit Agreement, there are no actions, suits or proceedings pending nor, to
the knowledge of such Subsidiary Guarantor, threatened against or in any way
relating adversely to or affecting such Subsidiary Guarantor or any of its
properties in any court or before any arbitrator of any kind or before or by any
Governmental Authority that (a) purport to affect or pertain to this Guaranty or
any of the transactions contemplated hereby, or (b) either individually or in
the aggregate, if determined adversely, could reasonably be expected to have a
Material Adverse Effect.

      

      SECTION
3.5    Title to Properties;
Liens.  Such
Subsidiary Guarantor has such title to the real property owned or leased by it
as is necessary or desirable to the conduct of its business and valid and legal
title to all of its personal property and assets, including, but not limited to,
those reflected on the balance sheets of the US Borrower and its Subsidiaries
delivered pursuant to the Credit Agreement, except those which have been
disposed of by such Subsidiary Guarantor subsequent to the date of such balance
sheets pursuant to dispositions in the ordinary course of business or as
otherwise expressly permitted under the Credit Agreement.  None of the
properties and assets of such Subsidiary Guarantor is subject to any Lien,
except Permitted Liens.  No financing statement under the Uniform
Commercial Code of any state or comparable legislation in other jurisdictions
which names such Subsidiary Guarantor or any of its trade names or divisions as
debtor and which has not been terminated, has been filed in any state or other
jurisdiction nor has such Subsidiary Guarantor signed any such financing
statement or any security agreement authorizing any secured party thereunder to
file any such financing statement, except to perfect Permitted
Liens.

      

      SECTION
3.6    Solvency. Subject
in each case to the first sentence of Section 2.2, as of
the Closing Date (or such later date upon which such Subsidiary Guarantor became
a party hereto), and after giving effect to the transactions contemplated
hereby, such Subsidiary Guarantor will be Solvent.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      

      SECTION
3.7    Compliance with the Credit
Agreement.  Until
the Guaranteed Obligations shall have been paid in full and the Commitments
terminated, such Subsidiary Guarantor shall comply with the provisions
of  Articles
IX , X
and XI
of the Credit Agreement as if a party thereto.

      

      ARTICLE
IV

      

      MISCELLANEOUS

      

      SECTION
4.1    Amendments, Waivers and
Consents.  None
of the terms, covenants, agreements or conditions of this Guaranty may be
amended, supplemented or otherwise modified, nor may they be waived, nor may any
consent be given, except in accordance with Section 15.2 of the
Credit Agreement.

      

      SECTION
4.2    Notices.  All
notices and communications hereunder shall be given to the addresses and
otherwise made in accordance with Section 15.1 of the
Credit Agreement; provided that notices
and communications to the Subsidiary Guarantors shall be directed to the
Subsidiary Guarantors at the address of the US Borrower set forth in Section 15.1(b) of the Credit
Agreement.

      

      SECTION
4.3    Enforcement Expenses,
Indemnification.

      

      (a)           The
Subsidiary Guarantors shall, jointly and severally, pay all out-of-pocket
expenses (including, without limitation, reasonable attorney’s fees and
expenses) incurred by the Administrative Agent and each other Secured Party to
the extent the Borrower would be required to do so pursuant to Section 15.3 of
the Credit Agreement.

      

      (b)           The
Subsidiary Guarantors shall, jointly and severally, pay and indemnify each
Indemnitee against , and
save each Indemnitee harmless from, Indemnified Taxes and Other Taxes to the
extent the Borrowers would be required to do so pursuant to Section 5.11 of the
Credit Agreement.

      

      (c)           The
Subsidiary Guarantors shall, jointly and severally, indemnify each Indemnitee
,and save each
Indemnitee harmless from, to the extent the Borrowers would be required to do so
pursuant to Section
15.3 of the Credit Agreement.

      

      (d)           No
Indemnitee referred to in this Section 4.3 shall be
liable for any damages arising from the use by unintended recipients of any
information or other materials distributed by it through telecommunications,
electronic or other information transmission systems in connection with this
Guaranty, any other Loan Document, any Hedging Agreement or the transactions
contemplated hereby or thereby.

      

      (f)           The
agreements in this Section 4.3 shall
survive termination of the Commitments and repayment of the Obligations and all
other amounts payable under the Credit Agreement and the other Loan
Documents.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      

      (g)           All
amounts due under this Section 4.3 shall be
payable promptly after demand therefor.

      

      SECTION
4.4    Governing
Law.  This
Guaranty, unless otherwise expressly set forth herein, shall be governed by,
construed and enforced in accordance with the laws of the State of North
Carolina, without reference to the conflicts or choice of law principles
thereof.

      

      SECTION
4.5    Jurisdiction and
Venue.

      

      (a)           Jurisdiction.  Each
Subsidiary Guarantor hereby irrevocably consents to the personal jurisdiction of
the state and federal courts located in Mecklenburg County, North Carolina (and
any courts from which an appeal from any of such courts must or may be taken),
in any action, claim or other proceeding arising out of any dispute in
connection with this Guaranty, any rights or obligations hereunder, or the
performance of such rights and obligations.  Each Subsidiary Guarantor
hereby irrevocably consents to the service of a summons and complaint and other
process in any action, claim or proceeding brought by the Administrative Agent
or any Secured Party in connection with this Guaranty, any rights or obligations
hereunder, or the performance of such rights and obligations, on behalf of
itself or its property, in the manner specified in Section
4.1.  Nothing in this Section 4.5 shall
affect the right of the Administrative Agent or any other Secured Party to serve
legal process in any other manner permitted by Applicable Law or affect the
right of the Administrative Agent or any Secured Party to bring any action or
proceeding against any Subsidiary Guarantor or its properties in the courts of
any other jurisdictions.

      

      (b)           Venue.  Each
Subsidiary Guarantor hereby irrevocably waives any objection it may have now or
in the future to the laying of venue in the aforesaid jurisdiction in any
action, claim or other proceeding arising out of or in connection with this
Guaranty or the rights and obligations of the parties hereunder.  Each
Subsidiary Guarantor irrevocably waives, in connection with such action, claim
or proceeding, any plea or claim that the action, claim or proceeding has been
brought in an inconvenient forum.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      SECTION
4.6    Binding Arbitration; Waiver
of Jury Trial.

      

      (a)           Binding
Arbitration.  Upon demand of any party, whether made before or
after institution of any judicial proceeding, any dispute, claim or controversy
arising out of, connected with or relating to this Guaranty or any other Loan
Document (each a “Dispute”) between or
among parties hereto and to the other Loan Documents shall be resolved by
binding arbitration as provided herein.  Institution of a judicial
proceeding by a party does not waive the right of that party to demand
arbitration hereunder.  A Dispute may include, without limitation,
tort claims, counterclaims, claims brought as class actions, claims arising from
Loan Documents executed in the future, disputes as to whether a matter is
subject to arbitration, or claims concerning any aspect of the past, present or
future relationships arising out of or connected with the Loan
Documents.  Arbitration shall be conducted under and governed by the
Commercial Financial Disputes Arbitration Rules (the “Arbitration Rules”)
of the American Arbitration Association (the “AAA”) and the Federal
Arbitration Act.  All arbitration hearings shall be conducted in
Charlotte, North Carolina.  The expedited procedures set forth in Rule
51, et seq. of the
Arbitration Rules shall be applicable to claims of less than
$1,000,000.  All applicable statutes of limitations shall apply to any
Dispute.  A judgment upon the award may be entered in any court having
jurisdiction.  Notwithstanding anything foregoing to the contrary, any
arbitration proceeding demanded hereunder shall begin within ninety (90) days
after such demand thereof and shall be concluded within one hundred twenty (120)
days after such demand.  These time limitations may not be extended
unless a party hereto shows cause for extension and then such extension shall
not exceed a total of sixty (60) days.  The panel from which all
arbitrators are selected shall be comprised of licensed attorneys selected from
the Commercial Financial Dispute Arbitration Panel of the AAA.  The
single arbitrator selected for expedited procedure shall be a retired judge from
the highest court of general jurisdiction, state or federal, of the state where
the hearing will be conducted.  The parties hereto do not waive any
applicable Federal or state substantive law except as provided
herein.  Notwithstanding the foregoing, this subsection shall not
apply to any Hedging Agreement.

      

      (b)           Jury Trial.  EACH PARTY HERETO HEREBY
ACKNOWLEDGES THAT BY AGREEING TO BINDING ARBITRATION THEY HAVE IRREVOCABLY
WAIVED THEIR RESPECTIVE RIGHTS TO A JURY TRIAL WITH RESPECT TO ANY ACTION, CLAIM
OR OTHER PROCEEDING ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THIS GUARANTY
OR THE OTHER LOAN DOCUMENTS, ANY RIGHTS OR OBLIGATIONS HEREUNDER OR THEREUNDER,
OR THE PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS.

      

      (c)           Preservation of Certain
Remedies.  Notwithstanding the preceding binding arbitration
provisions, the parties hereto and the other Loan Documents preserve, without
diminution, certain remedies that such Persons may employ or exercise freely,
either alone, in conjunction with or during a Dispute.  Each such
Person shall have and hereby reserves the right to proceed in any court of
proper jurisdiction or by self help to exercise or prosecute the following
remedies, as applicable:  (i) all rights to foreclose against any real
or personal property or other security by exercising a power of sale granted in
the Loan Documents or under Applicable Law or by judicial foreclosure and sale,
including a proceeding to confirm the sale, (ii) all rights of self help
including peaceful occupation of property and collection of rents, set off, and
peaceful possession of property, (iii) obtaining provisional or ancillary
remedies including injunctive relief, sequestration, garnishment, attachment,
appointment of receiver and in filing an involuntary bankruptcy proceeding, and
(iv) when applicable, a judgment by confession of
judgment.  Preservation of these remedies does not limit the power of
an arbitrator to grant similar remedies that may be requested by a party in a
Dispute.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      

      SECTION
4.7    Injunctive Relief; Punitive
Damages.

      

      (a)           Each
Subsidiary Guarantor recognizes that, in the event such Subsidiary Guarantor
fails to perform, observe or discharge any of its obligations or liabilities
under this Guaranty, any remedy of law may prove to be inadequate relief to the
Administrative Agent and the other Secured Parties. Therefore, each Subsidiary
Guarantor agrees that the Administrative Agent and the other Secured Parties, at
the Administrative Agent’s or the Required Lenders’ option, shall be entitled to
temporary and permanent injunctive relief in any such case without the necessity
of proving actual damages.

      

      (b)           The
Administrative Agent, the other Secured Parties and each Subsidiary Guarantor
hereby agree that no such Person shall have a remedy of punitive, exemplary or
consequential damages against any other party to a Loan Document or a Hedging
Agreement and each such Person hereby waives any right or claim to punitive or
exemplary damages that such Person may now have or may arise in the future in
connection with any Dispute, whether such Dispute is resolved through
arbitration or judicially.

      

                   
  SECTION
4.8         No Waiver by Course of
Conduct, Cumulative Remedies.  Neither
the Administrative Agent nor any other Secured Party shall by any act (except by
a written instrument pursuant to Section 4.1), delay,
indulgence, omission or otherwise be deemed to have waived any right or remedy
hereunder or to have acquiesced in any Default or Event of Default. No delay or
failure to take action on the part of the Administrative Agent or any other
Secured Party in exercising any right, power or privilege shall operate as a
waiver thereof, nor shall any single or partial exercise of any such right,
power or privilege preclude any other or further exercise thereof or the
exercise of any other right, power or privilege or shall be construed to be a
waiver of any Event of Default..  No course of dealing between any
Subsidiary Guarantor, the Administrative Agent and the other Secured Parties or
their respective agents or employees shall be effective to change, modify or
discharge any provision of this Guaranty or to constitute a waiver of any Event
of Default.  The enumeration of the rights and remedies of the
Administrative Agent and the other Secured Parties set forth in this Guaranty is
not intended to be exhaustive and the exercise by the Administrative Agent and
the other Secured Parties of any right or remedy shall not preclude the exercise
of any other rights or remedies, all of which shall be cumulative, and shall be
in addition to any other right or remedy given hereunder or under the other Loan
Documents or that may now or hereafter exist at law or in equity or by suit or
otherwise.

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      

      SECTION
4.9    Successors and
Assigns.  This
Guaranty shall be binding upon and inure to the benefit of each of the parties
hereto and its permitted successors and assigns (and shall bind all Persons who
become bound as a Subsidiary Guarantor under this Guaranty), except that no
Subsidiary Guarantor may assign or otherwise transfer any of its rights or
obligations under this Guaranty without the prior written consent of the
Administrative Agent and the other Secured Parties (given in accordance with the
Credit Agreement).

      

                     SECTION
4.10   Severability. Any
provision of this Guaranty which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective only to the extent
of such prohibition or unenforceability without invalidating the remainder of
such provision or the remaining provisions hereof or thereof or affecting the
validity or enforceability of such provision in any other
jurisdiction.

      

                
     SECTION 4.11   Titles and
Captions.  Titles
and captions of Articles, Sections and subsections in, and the table of contents
of, this Guaranty are for convenience only, and neither limit nor amplify the
provisions of this Guaranty.

      

      SECTION 4.12  Counterparts.  This
Guaranty may be executed in any number of counterparts and by different parties
hereto in separate counterparts, each of which when so executed shall be deemed
to be an original and shall be binding upon all parties, their successors and
assigns, and all of which taken together shall constitute one and the same
agreement.  Delivery of an executed counterpart of a signature page to
this Guaranty or any document or instrument delivered in connection herewith by
facsimile or other electronic transmission shall be effective as delivery of a
manually executed counterpart of this Guaranty or such other document or
instrument, as applicable.

      

      SECTION 4.13  Set-Off.  If
an Event of Default shall have occurred and be continuing,
each  Secured Party and each of its Affiliates is hereby authorized at
any time and from time to time, to the fullest extent permitted by Applicable
Law, to set off and apply any and all deposits (general or special, time or
demand, provisional or final, in whatever currency) at any time held and other
obligations (in whatever currency) at any time owing by such Secured Party or
any such Affiliate to or for the credit or the account of the applicable
Subsidiary Guarantor against any and all of the obligations of the such
Subsidiary Guarantor now or hereafter existing under this Guaranty or any other
Loan Document to such Secured Party, irrespective of whether or not such Secured
Party shall have made any demand under this Guaranty or any other Loan Document
and although such obligations of such Subsidiary Guarantor may be contingent or
unmatured or are owed to a branch or office of such Secured Party different from
the branch or office holding such deposit or obligated on such
indebtedness.  The rights of each Secured Party and its Affiliates
under this Section are in addition to other rights and remedies (including other
rights of setoff) that such Secured Party or its Affiliates may
have.  Each Secured Party agrees to notify the applicable Subsidiary
Guarantor and the Administrative Agent promptly after any such setoff and
application; provided that the
failure to give such notice shall not affect the validity of such setoff and
application.

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

      

      SECTION 4.14  Integration.  This
Guaranty, together with the other Loan Documents comprises the complete and
integrated agreement of the parties on the subject matter hereof and thereof and
supersedes all prior agreements, written or oral, on such subject
matter.  In the event of any conflict between the provisions of this
Guaranty and the Credit Agreement, the provisions of the Credit Agreement shall
control and in the event of any conflict between the provisions of this Guaranty
and those of any other document (other than the Credit Agreement), the
provisions of this Guaranty shall control; provided that the
inclusion of supplemental rights or remedies in favor of the Administrative
Agent or the other Secured Parties in any other document shall not be deemed a
conflict with this Guaranty.

      

      SECTION 4.15  Acknowledgements  Each
Subsidiary Guarantor hereby acknowledges that:

      

      (a)           it
has been advised by counsel in the negotiation, execution and delivery of this
Guaranty and the other Loan Documents to which it is a party;

      

      (b)           it
has received a copy of the Credit Agreement and has reviewed and understands the
same;

      

      (c)           neither
the Administrative Agent nor any other Secured Party has any fiduciary
relationship with or duty to any Subsidiary Guarantor arising out of or in
connection with this Guaranty or any of the other Loan Documents, and the
relationship between the Subsidiary Guarantors, on the one hand, and the
Administrative Agent and the other Secured Parties, on the other hand, in
connection herewith or therewith is solely that of debtor and creditor;
and

      

      (d)           no
joint venture is created hereby or by the other Loan Documents or otherwise
exists by virtue of the transactions contemplated hereby or thereby among the
Secured Parties or among the Subsidiary Guarantors and the Secured
Parties.

      

      SECTION 4.16  Releases.  At
such time as (a) the Guaranteed Obligations shall have been indeafeasibly paid
in full in cash and the Commitments have been terminated, this Guaranty and all
obligations (other than those expressly stated to survive such termination or as
may be reinstated after such termination) of the Administrative Agent and each
Subsidiary Guarantor hereunder shall terminate, all without delivery of any
instrument or performance of any act by any party or (b) a Subsidiary Guarantor
ceases to be a Subsidiary of a Borrower in connection with a transaction
expressly permitted under the terms and conditions of the Credit Agreement, such
Subsidiary Guarantor shall be released from the Guaranteed
Obligations.

      

      SECTION 4.17  Additional Subsidiary
Guarantors.  Each
Domestic Subsidiary of a Borrower that is required to become a party to this
Guaranty pursuant to Section 9.11 of the
Credit Agreement shall become a Subsidiary Guarantor for all purposes of this
Guaranty upon execution and delivery by such Subsidiary of a supplement in form
and substance satisfactory to the Administrative Agent.

      

                     
SECTION 4.18       No Strict
Construction.  The
parties hereto have participated jointly in the negotiation and drafting of this
Guaranty.  In the event an ambiguity or question of intent or
interpretation arises, this Guaranty shall be construed as if drafted jointly by
the parties hereto and no presumption or burden of proof shall arise favoring or
disfavoring any party by virtue of the authorship of any provisions of this
Guaranty.

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      

      SECTION 4.19  Powers Coupled with an
Interest. All
powers of attorney and other authorizations granted to the Secured Parties, the
Administrative Agent and any Persons designated by the Administrative Agent or
any other Secured Party pursuant to any provisions of this Guaranty or any of
the other Loan Documents shall be deemed coupled with an interest and shall be
irrevocable so long as any of the Guaranteed Obligations remain unpaid or
unsatisfied, any of the Commitments remain in effect or the Credit Facility has
not been terminated.

      

      SECTION 4.20  Secured
Parties.  Each
Secured Party not a party to the Credit Agreement who obtains the benefit of
this Guaranty shall be deemed to have acknowledged and accepted the appointment
of the Administrative Agent pursuant to the terms of the Credit Agreement, and
agrees that with respect to the actions and omissions of the Administrative
Agent hereunder or otherwise relating hereto that do or may affect such Secured
Party, the Administrative Agent and each of its Affiliates shall be entitled to
all the rights, benefits and immunities conferred under Article XIII of the
Credit Agreement.

      

      

      

      [Signature
Pages to Follow]

       

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF, each of the Subsidiary Guarantors has executed and delivered
this Guaranty under seal by their duly authorized officers, all as of the day
and year first above written.

      

      

      
        	
                 
      

              	
                SCP
      DISTRIBUTORS LLC, as Subsidiary
Guarantor

              

      

      

      

                                      By:             /s/
Mark W.
Joslin                                                                           

                                     Name: Mark W.
Joslin                                                                    

                                     Title:   Vice President and
CFO                                                                    

       

       

      
        	
                 
      

              	
                ALLIANCE
      TRADING, INC., as Subsidiary
Guarantor

              

      

      

      

                                      By:             /s/
Melanie
Housey                                                                           

                                     Name: Melanie
Housey                                                                    

                                     Title:   President                                                                    

      

      
        

        
          	
                   
      

                	
                  

                    CYPRESS,
      INC., as Subsidiary
Guarantor

                  

                

        

      

      

      

                                      By:             /s/
Melanie
Housey                                                                           

                                     Name: Melanie
Housey                                                                    

                                     Title:   President                                                                    

      
 

      
        
          	
                   
      

                	
                  SUPERIOR
      POOL PRODUCTS LLC, as Subsidiary
Guarantor

                

        

         

      

      

                                      By:             /s/
Mark W.
Joslin                                                                           

                                     Name: Mark W.
Joslin                                                                    

                                     Title:   Vice
President                                                                    

      

      

      

      [Signature
Pages Continue]

      

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                SCP
      ACQUISITION CO. LLC, as Subsidiary
Guarantor

              

      

      

      

                                      By:             /s/
Mark W. Joslin

                                     Name: Mark W.
Joslin

                                     Title:   Vice
President

      

      

      
        	
                 
      

              	
                SCP
      INTERNATIONAL, INC., as Subsidiary
Guarantor

              

      

       

      

      

                                      By:             /s/
Mark W. Joslin

                                     Name: Mark W.
Joslin

                                     Title:   Vice
President

      

      

      
        	
                 
      

              	
                POOL
      DEVELOPMENT LLC, as Subsidiary
Guarantor

              

      

      
 

      

                                      By:             /s/
Mark W. Joslin

                                     Name: Mark W.
Joslin

                                     Title:   Vice President and
CFO

      

      

      
        	
                 
      

              	
                SPLASH
      HOLDINGS, INC. (formerly known 

              

      

      
        	 	as
      FORT WAYNE POOLS, INC.), 
	
                 
      

              	
                as
      Subsidiary Guarantor

              

      

      

      

                                      By:             /s/
Mark W. Joslin

                                     Name: Mark W.
Joslin

                                     Title:   Vice
President

      

      

      
        	
                 
      

              	
                HORIZON
      DISTRIBUTORS, INC., as Subsidiary
Guarantor

              

      

       

      

      

                                      By:             /s/
Mark W. Joslin

                                     Name: Mark W.
Joslin

                                     Title:   Vice
President

      

       

      
        [Signature
Pages Continue]

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                POOLCORP
      FINANCIAL MORTGAGE, LLC as Subsidiary
Guarantor

              

      

      

      

                                      By:             /s/
Mark W. Joslin

                                     Name: Mark W.
Joslin

                                     Title:   President and
Treasurer

      

      

      
        	
                 
      

              	
                POOLCORP
      FINANCIAL INC., as Subsidiary
Guarantor

              

      

       

      

      

                                      By:             /s/
Mark W. Joslin

                                     Name: Mark W.
Joslin

                                     Title:   President and
Treasurer

      

      

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      
        	 	WACHOVIA
      BANK, NATIONAL ASSOCIATION,
	
                 
      

              	
                 as
      Administrative Agent

              

      

      

      

                                      By:             /s/
Authorized Signatory

                                     Name: Authorized
Signatory

                                     Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]