Document:

Exhibit 10.1

 

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

Dated as of August 28, 2003

by and among

STANDARD PARKING CORPORATION

as Borrower,

 

LASALLE BANK NATIONAL ASSOCIATION

as Agent,

and

VARIOUS FINANCIAL INSTITUTIONS

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I

  	
  DEFINITIONS

  
	
   

  	
   

  
	
  1.1

  	
  Certain Definitions

  
	
   

  	
   

  
	
  1.2

  	
  Other Definitions; Rules of Construction

  
	
   

  	
   

  
	
  1.3

  	
  Accounting Terms and Determinations

  
	
   

  	
   

  
	
  ARTICLE II

  	
  THE COMMITMENTS AND THE ADVANCES

  
	
   

  	
   

  
	
  2.1

  	
  Commitments of the Lenders

  
	
   

  	
   

  
	
  2.2

  	
  Termination and Reduction of Commitments
  and the Term Loan

  
	
   

  	
   

  
	
  2.3

  	
  Fees

  
	
   

  	
   

  
	
  2.4

  	
  Disbursement of Revolving Credit
  Advances; Loans Evidenced by Notes

  
	
   

  	
   

  
	
  2.5

  	
  Conditions for Term Loan and First
  Disbursement

  
	
   

  	
   

  
	
  2.6

  	
  Further Conditions for Disbursement

  
	
   

  	
   

  
	
  2.7

  	
  Subsequent Elections as to
  Borrowings

  
	
   

  	
   

  
	
  2.8

  	
  Limitation of Requests and
  Elections

  
	
   

  	
   

  
	
  2.9

  	
  Minimum Amounts; Limitation on Number
  of Borrowings

  
	
   

  	
   

  
	
  2.10

  	
  Security
  and Collateral

  
	
   

  	
   

  
	
  ARTICLE III

  	
  PAYMENTS AND PREPAYMENTS OF ADVANCES

  
	
   

  	
   

  
	
  3.1

  	
  Principal Payments

  
	
   

  	
   

  
	
  3.2

  	
  Interest Payments

  
	
   

  	
   

  
	
  3.3

  	
  Letter of Credit Reimbursement
  Payments

  
	
   

  	
   

  
	
  3.4

  	
  Payment
  Method

  
	
   

  	
   

  
	
  3.5

  	
  No
  Setoff or Deduction

  
	
   

  	
   

  
	
  3.6

  	
  Payment on Non-Business
  Day; Payment Computations

  
	
   

  	
   

  
	
  3.7

  	
  Additional Costs

  
	
   

  	
   

  
	
  3.8

  	
  Illegality and Impossibility

  
	
   

  	
   

  
	
  3.9

  	
  Indemnification

  
	
   

  	
   

  
	
  3.10

  	
  Substitution of Lender

  
	
   

  	
   

  
	
  ARTICLE IV

  	
  REPRESENTATIONS AND WARRANTIES

  
	
   

  	
   

  
	
  4.1

  	
  Corporate Existence and
  Power

  
	
   

  	
   

  
	
  4.2

  	
  Corporate Authority

  
	
   

  	
   

  
	
  4.3

  	
  Binding Effect

  

 

i

 

	
  4.4

  	
  Subsidiaries

  
	
   

  	
   

  
	
  4.5

  	
  Litigation

  
	
   

  	
   

  
	
  4.6

  	
  Financial Condition

  
	
   

  	
   

  
	
  4.7

  	
  Use of Revolving
  Credit Advances

  
	
   

  	
   

  
	
  4.8

  	
  Consents,
  Etc

  
	
   

  	
   

  
	
  4.9

  	
  Taxes

  
	
   

  	
   

  
	
  4.10

  	
  Title to Properties

  
	
   

  	
   

  
	
  4.11

  	
  ERISA

  
	
   

  	
   

  
	
  4.12

  	
  Disclosure

  
	
   

  	
   

  
	
  4.13

  	
  Environmental and
  Safety Matters

  
	
   

  	
   

  
	
  4.14

  	
  No
  Default

  
	
   

  	
   

  
	
  4.15

  	
  Intellectual Property

  
	
   

  	
   

  
	
  4.16

  	
  No Burdensome Restrictions

  
	
   

  	
   

  
	
  4.17

  	
  Labor Matters

  
	
   

  	
   

  
	
  4.18

  	
  Solvency

  
	
   

  	
   

  
	
  4.19

  	
  Not an Investment Company or
  a Holding Company; Other Regulations

  
	
   

  	
   

  
	
  4.20

  	
  Subordinated Debt Documents

  
	
   

  	
   

  
	
  4.21

  	
  Preferred Stock Documents

  
	
   

  	
   

  
	
  4.22

  	
  Bank Accounts

  
	
   

  	
   

  
	
  4.23

  	
  Facility Leases and
  Facility Management Agreements

  
	
   

  	
   

  
	
  ARTICLE V

  	
  COVENANTS

  
	
   

  	
   

  
	
  5.1

  	
  Affirmative Covenants

  
	
   

  	
   

  
	
  5.2

  	
  Negative
  Covenants

  
	
   

  	
   

  
	
  ARTICLE VI

  	
  DEFAULT

  
	
   

  	
   

  
	
  6.1

  	
  Events of Default

  
	
   

  	
   

  
	
  6.2

  	
  Remedies

  
	
   

  	
   

  
	
  6.3

  	
  Distribution of
  Proceeds of Collateral

  
	
   

  	
   

  
	
  6.4

  	
  Letter of Credit
  Liabilities

  
	
   

  	
   

  
	
  ARTICLE VII

  	
  THE AGENT AND THE LENDERS

  
	
   

  	
   

  
	
  7.1

  	
  Appointment: Nature
  of Relationship

  
	
   

  	
   

  
	
  7.2

  	
  Powers

  

 

ii

 

	
  7.3

  	
  General Immunity

  
	
   

  	
   

  
	
  7.4

  	
  No Responsibility for
  Loans, Recitals, etc

  
	
   

  	
   

  
	
  7.5

  	
  Action on
  Instructions of Lenders

  
	
   

  	
   

  
	
  7.6

  	
  Employment of Agents
  and Counsel

  
	
   

  	
   

  
	
  7.7

  	
  Reliance on Documents;
  Counsel

  
	
   

  	
   

  
	
  7.8

  	
  Agent’s
  Reimbursement and Indemnification

  
	
   

  	
   

  
	
  7.9

  	
  Notice of Default

  
	
   

  	
   

  
	
  7.10

  	
  Rights as a Lender

  
	
   

  	
   

  
	
  7.11

  	
  Lender Credit Decision

  
	
   

  	
   

  
	
  7.12

  	
  Successor Agent

  
	
   

  	
   

  
	
  7.13

  	
  Collateral Management

  
	
   

  	
   

  
	
  7.14

  	
  Right to Indemnity

  
	
   

  	
   

  
	
  7.15

  	
  Sharing of Payments

  
	
   

  	
   

  
	
  7.16

  	
  Withholding Tax Exemption

  
	
   

  	
   

  
	
  ARTICLE VIII

  	
  MISCELLANEOUS

  
	
   

  	
   

  
	
  8.1

  	
  Amendments,
  Etc

  
	
   

  	
   

  
	
  8.2

  	
  Notices

  
	
   

  	
   

  
	
  8.3

  	
  No Waiver By
  Conduct; Remedies Cumulative

  
	
   

  	
   

  
	
  8.4

  	
  Reliance
  on and Survival of Various Provisions

  
	
   

  	
   

  
	
  8.5

  	
  Expenses; Indemnification

  
	
   

  	
   

  
	
  8.6

  	
  Successors and Assigns

  
	
   

  	
   

  
	
  8.7

  	
  Counterparts

  
	
   

  	
   

  
	
  8.8

  	
  Governing Law

  
	
   

  	
   

  
	
  8.9

  	
  Table of Contents and
  Headings

  
	
   

  	
   

  
	
  8.10

  	
  Construction of
  Certain Provisions

  
	
   

  	
   

  
	
  8.11

  	
  Integration and
  Severability

  
	
   

  	
   

  
	
  8.12

  	
  Independence of Covenants

  
	
   

  	
   

  
	
  8.13

  	
  Interest Rate Limitation

  
	
   

  	
   

  
	
  8.14

  	
  Judgment and Payment

  
	
   

  	
   

  
	
  8.15

  	
  Submission To
  Jurisdiction; Waivers

  
	
   

  	
   

  
	
  8.16

  	
  Acknowledgments

  

 

iii

 

	
  8.17

  	
  Confidentiality

  
	
   

  	
   

  
	
  8.18

  	
  WAIVER OF JURY TRIAL

  
	
   

  	
   

  
	
  8.19

  	
  Amendment and Restatement

  

 

iv

 

	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  Form of Guaranty

  
	
  Exhibit B-1

  	
   

  	
  Form of Amended and Restated Pledge Agreement for the Company

  
	
  Exhibit B-2

  	
   

  	
  Form of Amended and Restated Pledge Agreement for the Guarantors

  
	
  Exhibit B-3

  	
   

  	
  Form of Limited Liability Company Membership Interests Security
  Agreement

  
	
  Exhibit B-4

  	
   

  	
  Form of Assignment of Partnership Interest Security Agreement

  
	
  Exhibit B-5

  	
   

  	
  Form of Joint Venture Interest Security Agreement

  
	
  Exhibit C

  	
   

  	
  Form of Revolving Credit Note

  
	
  Exhibit D

  	
   

  	
  Form of Term Note

  
	
  Exhibit E-1

  	
   

  	
  Form of Security Agreement of the Company

  
	
  Exhibit E-2

  	
   

  	
  Form of Security Agreement of the Guarantors

  
	
  Exhibit F-1

  	
   

  	
  Form of Amended and Restated Patent Collateral Security and Pledge
  Agreement

  
	
  Exhibit F-2

  	
   

  	
  Form of Amended and Restated Trademark Collateral Security and Pledge
  Agreement

  
	
  Exhibit F-3

  	
   

  	
  Form of Amended and Restated Memorandum of Grant of Security Interest
  in Copyrights

  
	
  Exhibit G

  	
   

  	
  Form of Notice of Borrowing

  
	
  Exhibit H

  	
   

  	
  Form of Legal Opinion of Counsel

  
	
  Exhibit I

  	
   

  	
  Form of Notice of Conversion/Continuation

  
	
  Exhibit J

  	
   

  	
  Form of Assignment and Acceptance

  
	
  Exhibit K

  	
   

  	
  Form of Borrowing Base Certificate

  
	
  Exhibit L

  	
   

  	
  Forms of Statement of Operation, Balance Sheet and Cash Flow
  Statement

  

 

v

 

	
  SCHEDULES

  	
   

  	
   

  
	
  Schedule 1.1-A

  	
   

  	
  Preferred Stock

  
	
  Schedule 1.1-D

  	
   

  	
  Pro Forma Financial Statements

  
	
  Schedule 1.1-E

  	
   

  	
  Non-Guarantor Joint Ventures

  
	
  Schedule 2.5(m)

  	
   

  	
  Parent Indebtedness

  
	
  Schedule 4.4

  	
   

  	
  Subsidiaries and Joint Ventures

  
	
  Schedule 4.5

  	
   

  	
  Litigation

  
	
  Schedule 4.7

  	
   

  	
  Application of Funds

  
	
  Schedule 4.11

  	
   

  	
  ERISA Matters

  
	
  Schedule 4.13

  	
   

  	
  Environmental Matters

  
	
  Schedule 4.15

  	
   

  	
  Intellectual Property

  
	
  Schedule 4.22

  	
   

  	
  Bank Accounts

  
	
  Schedule 4.23

  	
   

  	
  Facility Leases and Management Agreements

  
	
  Schedule 5.2(e)

  	
   

  	
  Indebtedness

  
	
  Schedule 5.2(f)

  	
   

  	
  Liens

  
	
  Schedule 5.2(k)

  	
   

  	
  Investments, Loans and Advances

  
	
  Schedule 5.2(l)(12)

  	
   

  	
  Indebtedness to Company of Parent, Principals and/or Related Parties

  

 

vi

 

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS SECOND AMENDED AND RESTATED CREDIT AGREEMENT (as it may be further
amended, restated, modified or supplemented and in effect from time to time,
this “Agreement”), dated as of August 28, 2003 (the “Effective Date”), is by
and among STANDARD PARKING CORPORATION, a Delaware corporation, formerly known
as APCOA/Standard Parking, Inc. (the “Company”), the lenders party hereto from
time to time (collectively, the “Lenders” and individually, a “Lender”), and
LASALLE BANK NATIONAL ASSOCIATION (“LaSalle”), a national banking association,
as agent for the Lenders (in such capacity, the “Agent”).

 

RECITALS

 

WHEREAS, pursuant to that certain Amended and Restated Credit Agreement
dated as of January 11, 2002 (as amended, restated, modified and/or
supplemented from time to time prior to the date hereof, the “Existing Credit
Agreement”), by and among the Company, LaSalle, as agent, Bank One, NA,
formerly known as The First National Bank of Chicago (“Bank One”), and various
lenders party thereto from time to time, the Company restuctured a $40,000,000
credit facility, including letters of credit (the “Existing Credit Facility”),
into a $15,000,000 term loan from Bank One, and a revolving credit facility of
up to $25,000,000, which Existing Credit Facility has been further amended and
increased to $43,000,000; and

 

WHEREAS, the Company has requested that the credit facility be
restructured and increased to (i) a $32,000,000 term loan, and (ii) a revolving
credit facility of up to $33,000,000, including letters of credit, in order to
provide funds and other financial accommodations for its corporate purposes;
and

 

WHEREAS, the Lenders and the Agent are each amenable to such request,
subject to the following terms and conditions.

 

NOW, THEREFORE, in consideration of the premises and of the mutual
agreements herein contained, the parties hereto hereby agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

1.1           Certain Definitions.  As used herein the following terms shall
have the following respective meanings:

 

“9 1⁄4% Note Indenture” shall mean that certain Indenture dated
March 30, 1998, by and among the Company, “Subsidiary Guarantors” (as named
therein), and U.S. Bank (as successor to State Street Bank and Trust Company)
as trustee thereunder, as the same may be amended, restated, modified or
supplemented and in effect from time to time, as permitted by the terms hereof.

 

 

“9 1/4% Notes” shall mean the 9 1/4% Senior Subordinated Notes
issued by the Company in the original aggregate principal amount of
$140,000,000 due 2008 issued pursuant to the Existing Indenture, as the same
may be amended, restated, modified or supplemented and in effect from time to
time, as permitted by the terms hereof.

 

“9 1/4% Note Documents” shall mean the Existing Indenture, the 9
1/4% Notes and all agreements, instruments and documents executed in connection
therewith at any time, in each case, as the same may be amended, restated,
modified or supplemented and in effect from time to time, as permitted by the
terms hereof.

 

“14% Note Documents” shall mean the 14% Note Indenture, the 14%
Notes, the 14% Note Intercreditor Agreement and all agreements, instruments and
documents executed in connection therewith at any time, in each case, as the
same may be amended, restated, modified or supplemented and in effect from time
to time as permitted by the terms hereof.

 

“14% Note Intercreditor Agreement” shall mean that certain
Intercreditor Agreement dated as of January 11, 2002 among the Agent,
Wilmington Trust Company, as trustee for the holders of the 14% Notes, the
Company and the Guarantors, as the same may be amended, restated, modified or
supplemented and in effect from time to time in accordance with the terms
thereof.

 

“14% Notes” shall mean the 14% Senior Subordinated Second Lien
Notes issued by the Company in the original aggregate principal amount of $59,295,000
due 2006 issued pursuant to the 14% Note Indenture, as the same may be amended,
restated, modified or supplemented and in effect from time to time as permitted
by the terms hereof.

 

“14% Note Indenture” shall mean the Indenture among the Company,
each of the “Guarantors” named therein and Wilmington Trust Company as trustee
thereunder, dated as of January 11, 2002, as amended, restated, modified or
supplemented and in effect from time to time as permitted by the terms hereof.

 

“Account Debtor” shall mean any Person who is obligated to the
Company or any Subsidiary under an Account Receivable.

 

“Account Receivable” shall mean, with respect to any Person, any
right of such person to payment for goods sold or leased or for services
rendered, whether or not evidenced by an instrument or chattel paper and
whether or not yet earned by performance.

 

“Acquisition” shall mean any transaction, or any series of
related transactions, consummated on or after the date of this Agreement, by
which the Company or any of its Subsidiaries (i) acquires any ongoing business
or all or substantially all of the assets of any firm, corporation,
partnership, limited liability company or other business entity, or division
thereof, whether through purchase of assets, merger or otherwise or (ii)
directly or indirectly acquires (in one transaction or as the most recent
transaction in a series of transactions) at least a majority (in number of
votes) of the Capital Stock of any Person.

 

2

 

“Adjusted Corporate Base Rate” shall mean the per annum rate
equal to the sum of (i) the Applicable Margin, plus (ii) the greater of (a) the
Corporate Base Rate or (b) the Federal Funds Rate plus 0.5%, in each case as in
effect from time to time.  The Adjusted
Corporate Base Rate shall change simultaneously with any change in such
Corporate Base Rate or Federal Funds Rate, as the case may be.

 

 “Adjusted Corporate Base
Rate Loan” shall mean any Revolving Credit Loan which bears interest at the
Adjusted Corporate Base Rate.

 

“Adjusted EBITDA” shall mean without duplication, for any
Calculation Period, the sum of (A) Net Income for such period, excluding to the
extent reflected in determining such Net Income:  (i) the income of any Person accrued prior to the date it becomes
a Subsidiary of the Company or is merged into or consolidated with the Company
or any of its Subsidiaries or that Person’s assets are acquired by the Company
or any of its Subsidiaries, (ii) the proceeds of any insurance policy, (iii)
gains (but not losses) from the sale, exchange, transfer or other disposition
of property or assets not in the ordinary course of business of the Company and
its Subsidiaries, and related tax effects in accordance with Generally Accepted
Accounting Principles, (iv) any other extraordinary or non-recurring gains or
other gains not from continuing operations of the Company or its Subsidiaries,
and related tax effects in accordance with Generally Accepted Accounting
Principles, (v) the income of any Person (including without limitation any
Subsidiary or Joint Venture, but excluding any Wholly Owned Subsidiary) in
which any Person other than the Company or any of its Subsidiaries has a joint
interest or partnership interest or other ownership interest, to the extent
that the declaration or payment of dividends or similar distributions by that
Subsidiary or Joint Venture is not at the time permitted by operation of the
terms of its charter or of any agreement, instrument, judgment, decree, order,
statute, rule or governmental regulation applicable to that Subsidiary or Joint
Venture, except to the extent of the amount of dividends or other distributions
that are actually paid in cash to the Company during such period, (vi)
extraordinary non-cash losses and non-recurring non-cash charges (including,
without limitation, non-cash losses resulting from disposition of Facility
Leases and Facility Management Agreements, the write off of intangible assets
during such period and non-cash charges of up to $500,000 in the aggregate
resulting from the write-off of prior financing fees), (vii) income taxes,
(viii) minority interests, (ix) interest income net of interest expense, as
defined in accordance with Generally Accepted Accounting Principles (x)
depreciation and amortization expense, (xi) restructuring and other special
charges of up to $3,200,000 incurred by the Company in calendar year 2003 as a
result of consummating the transactions contemplated by this Agreement, (xii)
any other extraordinary or non-recurring amounts or other amounts received by
the Company or any of its Subsidiaries from, or in respect of, any disposition
or termination of any Facility Lease or Facility Management Agreement of the
Company or its Subsidiaries, provided that, any such amount arising from a
single transaction shall only be excluded from Net Income if it equals or
exceeds $250,000; and (xiii) any Affiliate Amount made pursuant to subsection
5.2(l)(2), plus (B) Adjusted EBITDA as calculated herein of any Person related
to any Permitted Acquisition consummated during such Calculation Period,
calculated, upon the Agent’s consent, as if such Permitted Acquisition had
occurred on the first day of the relevant period.

 

3

 

“Adjusted Off-Balance Sheet Liabilities” of a Person shall mean,
Off-Balance Sheet Liabilities of such Person and its Subsidiaries, excluding
(i) all Facility Leases, Ordinary Course Equipment Leases and Facility
Management Agreements of such Person’s and its Subsidiaries’ businesses, and
(ii) payments required pursuant to that certain Executive Parking Management
Agreement dated as of May 1, 1998, together with the First Amendment thereto
dated as of August 1, 1999, by and among the Company, D&E Parking, Inc.,
Edward E. Simmons and Dale G. Stark.

 

“Adjusted Total Debt” as of any date, shall mean the difference
of (a) the sum of (i) the consolidated Indebtedness (excluding Earnouts and
Off-Balance Sheet Liabilities) of the Company and its Subsidiaries as of such
date, plus (ii) the aggregate liquidation preference of the Preferred
Stock and any other preferred Capital Stock of the Company on which dividends,
redemptions or other distributions are mandatorily payable in cash or Cash
Equivalents and all accrued and unpaid dividends, redemptions and other
distributions on any of the Preferred Stock or any other preferred Capital
Stock, provided, that for purposes of calculating the covenant as of any
date contained in subsection 5.2(a) only, the amount of the Preferred Stock and
other preferred Capital Stock of the Company shall include only such Preferred
Stock and other preferred Capital Stock upon which dividends, redemptions or
distributions in cash or Cash Equivalents are or will become mandatorily
payable thereon within one year of such date and are allowed to be paid
pursuant to the terms of this Agreement (but excluding the redemption of the
Series C Preferred Stock in accordance with subsection 5.2(l)(4) hereof), plus
(iii) Adjusted Off-Balance Sheet Liabilities, minus (b) the sum of (i)
all Cash Equivalents of the Company and its Subsidiaries at such date, plus
(ii) the carrying value in excess of principal with respect to the 9 1/4% Notes
and 14% Notes, as shown on the balance sheets of the Company.

 

“Adjusted Total Debt to Adjusted EBITDA Ratio” shall mean, at
any time, the ratio of (a) Adjusted Total Debt at such time to (b) Adjusted
EBITDA, as calculated as of the four most recently completed fiscal quarters of
the Company, all as determined in accordance with Generally Accepted Accounting
Principles.

 

“Affiliate”, when used with respect to any Person, shall mean
any other Person which, directly or indirectly, controls or is controlled by or
is under common control with such Person. 
For purposes of this definition “control” (including the correlative
meanings of the terms “controlled by” and “under common control with”), with
respect to any Person, shall mean possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of such
Person, whether through the ownership of voting securities or by contract or
otherwise.  Without limiting the
foregoing definition of Affiliate, any Person shall be deemed to control
another Person if the controlling Person owns or controls 10% or more of any
class of voting securities (or
other ownership interest of any kind) of the controlled Person.

 

“Affiliate Amount” shall have the meaning as set forth in
subsection 5.2(l)(2).

 

“Applicable Lending Office” shall mean, with respect to any
Revolving Credit Advance and/or the Term Loan made by any Lender or with
respect to such Lender’s Commitment, the office of such Lender or of any
Affiliate of such Lender located at the address specified as the

 

4

 

applicable lending office for such Lender set forth next to the name of
such Lender in the signature pages hereof or any other office or Affiliate of
such Lender or of any Affiliate of such Lender hereafter selected and notified
to the Company and the Agent by such Lender.

 

“Applicable Margin” shall mean, with respect to any Adjusted
Corporate Base Rate Loan or LIBOR Loan, the applicable percentage set forth
below:

 

	
  Type of Revolving Credit Loan

  	
   

  	
  Applicable
  Margin

  
	
   

  	
   

  	
   

  
	
  LIBOR Loan

  	
   

  	
  4.50% (450 basis points)

  
	
  Adjusted Corporate Base Rate Loan

  	
   

  	
  2.25% (225 basis points)

  

 

“Assignment and Acceptance” is defined in subsection 8.6(c).

 

“Bank Subordination Agreement” shall mean that certain
Subordination Agreement dated as of August 28, 2003 between LaSalle and the Term
Loan Lenders, as the same may be amended, restated, modified or supplemented
and in effect from time to time.

 

“Board of Directors” shall mean the board of directors of the
Company, or any authorized committee of such board of directors.

 

“Borrowing” shall mean the aggregation of Revolving Credit
Advances, or continuations and conversions of Revolving Credit Loans, made
pursuant to Article II on a single date and, in the case of any LIBOR Loans,
for a single LIBOR Interest Period, which Borrowings may be classified for
purposes of this Agreement by reference to the type of Revolving Credit Loans
or the type of Revolving Credit Advances comprising the related Borrowing
(e.g., a “LIBOR Borrowing” is a Borrowing comprised of LIBOR Loans and a
“Letter of Credit Borrowing” is a Revolving Credit Advance comprised of a
Single Letter of Credit).

 

“Borrowing Base” shall mean an amount equal to (i) eighty
percent (80%) of the unpaid amount (net of such reserves and allowances as the
Agent deems necessary in its reasonable discretion) of all Eligible Accounts
Receivable then existing (other than Eligible Capital Improvement Receivables),
plus (ii) fifty percent (50%) of all Eligible Capital Improvement
Receivables then existing, plus (iii) forty percent (40%) of (A) the Net
Book Value of Fixed Assets of the Company, minus (B) outstanding Capital Lease
Indebtedness of the Company (determined on a consolidated basis), plus
$8,000,000, provided, however, that such $8,000,000 additional
availability shall be decreased by $500,000 on March 31, 2004, and on every
March 31st and September 30th of each year thereafter.

 

“Business Day” shall mean a day other than a Saturday, Sunday or
other day on which banks in Chicago, Illinois are not open to the public for
carrying on substantially all of their banking functions.

 

“Calculation Period” shall mean any consecutive four fiscal
quarter period.

 

5

 

“Capital Expenditures” shall mean, for any period, the additions
to property, plant and equipment and other capital expenditures of the Company
and its Subsidiaries for such period, as determined in accordance with
Generally Accepted Accounting Principles.

 

“Capital Improvement Receivable” shall mean an Account
Receivable which is payable to the Company in respect of capital improvements
made (or paid for) by the Company to a parking facility or other non-parking
operation managed by the Company in conformity with past historical practices
pursuant to a written agreement between the Company and a non-Affiliate third
party.

 

“Capital Lease” of any Person shall mean any lease which, in
accordance with Generally Accepted Accounting Principles, is or should be
capitalized on the books of such Person.

 

“Capital Lease Indebtedness” shall mean that portion of
obligations under Capital Leases of a Person which, in accordance with GAAP,
would be classified as the principal portion of Indebtedness of such Person.

 

“Capital Stock” shall mean (i) in the case of any corporation,
all capital stock and any securities exchangeable for or convertible into
capital stock and any warrants, rights or other options to purchase or
otherwise acquire capital stock or such securities or any other form of equity
securities, (ii) in the case of an association or business entity, any and all
shares, interests, participations, rights or other equivalents (however
designated) of corporate stock, (iii) in the case of a partnership or limited
liability company, partnership or membership interests (whether general or
limited) and (iv) any other interest or participation that confers on a Person
the right to receive a share of the profits and losses of, or distribution of
assets of, the issuing Person.

 

“Cash Equivalent” shall mean (i) cash in Dollars, (ii)
securities issued or directly and fully guaranteed or insured by the United
States government or any agency or instrumentality thereof having maturities of
not more than six months from the date of acquisition, (iii) marketable direct
obligations issued by any state of the United States of America or any
political subdivision of any such state or any public instrumentality thereof
maturing within one year from the date of acquisition thereof and, at the time
of acquisition, having one of the two highest ratings obtainable from either
Standard & Poor’s Ratings Group or Moody’s Investors Service, Inc., (iv)
certificates of deposit and eurodollar time deposits with maturities of six
months or less from the date of acquisition, bankers’ acceptances with
maturities not exceeding six months and overnight bank deposits, in each case
with any Lender or with any domestic commercial bank, having capital and
surplus in excess of $500,000,000 and a Keefe Bank Watch Rating of “B” or
better, (v) repurchase obligations with a term of not more than seven days for
underlying securities of the types described in clauses (ii), (iii) and (iv)
above entered into with any financial institution meeting the qualifications
specified in clause (iv) above, (vi) commercial paper having one of the two
highest ratings obtained from Standard & Poor’s Ratings Group or Moody’s
Investors Service, Inc. and in each case maturing within six months after the
date of acquisition and (vii) investments in money market funds which invest
substantially all their assets in securities of the type described in clauses
(i) through (vi) above.

 

6

 

“Change of Control” shall mean the occurrence of any of the
following:  (i) the sale, lease,
transfer, conveyance or other disposition (other than in a transaction
described in clause (vi) below), in one or a series of related transactions, of
all or substantially all of the assets of Parent and its Subsidiaries or of the
Company and its Subsidiaries, in each case, taken as a whole to any “person”
(as such term is used in subsection 13(d)(3) of the Exchange Act) other than
the Principals or their Related Parties, (ii) the adoption of a plan relating
to the liquidation or dissolution of Parent or the Company, (iii) the
consummation of any transaction (including, without limitation, any merger or
consolidation) the result of which is that any “person” (as defined above),
other than the Principals and their Related Parties, becomes the “beneficial
owner” (as such term is defined in Rule 13d-3 and Rule 13d-5 under the Exchange
Act, except that a person shall be deemed to have “beneficial ownership” of all
securities that such person has the right to acquire, whether such right is
currently exercisable or is exercisable only upon the occurrence of a
subsequent condition), directly or indirectly, of more than 50% of the Voting
Stock of Parent or the Company (measured by voting power rather than number of
shares), (iv) the first day on which a majority of the members of the Board of
Directors of the Company are not Continuing Directors, (v) the occurrence of
any “Change of Control” as defined in the 9 1/4% Note Documents or the 14% Note
Documents or any change of control or similar provision in any other
Subordinated Debt, the Preferred Stock or any other preferred Capital Stock of
the Company, or (vi) the Parent or the Company consolidates with, or merges
with or into, any Person or sells, assigns, conveys, transfers, leases or
otherwise disposes of all or substantially all of its assets to any Person, or
any Person consolidates with, or merges with or into, the Parent or the
Company, in any such event pursuant to a transaction in which any of the
outstanding Voting Stock of the Parent or the Company is converted into or
exchanged for cash, securities or other property, other than any such
transaction where the Voting Stock of the Parent or the Company outstanding
immediately prior to such transaction is converted into or exchanged for Voting
Stock (other than Disqualified Stock) of the surviving or transferee Person
constituting a majority of the outstanding shares of such Voting Stock of such
surviving or transferee Person (immediately after giving effect to such
issuance).

 

“C/L/C” shall mean any commercial letter of credit issued
hereunder, as amended from time to time.

 

“Closing Date” shall mean the date upon which all the conditions
set forth in Section 2.5 hereof shall have been satisfied (or waived in the
Lenders’ and the Agent’s discretion).

 

“Code” shall mean the Internal Revenue Code of 1986, as amended
from time to time, and the regulations promulgated thereunder.

 

“Commitments” shall mean, as to all Lenders, the aggregate of
the Revolving Commitments and the Term Loan Commitments, and as to any Lender,
shall mean such Lender’s proportionate share of the Revolving Commitments and
the Term Loan Commitments.

 

“Consolidated” or “consolidated” shall mean, when used
with reference to any financial term in this Agreement, the aggregate for two
or more Persons of the amounts signified by such

 

7

 

term, for all such Persons determined on a consolidated basis in
accordance with Generally Accepted Accounting Principles.

 

“Contingent Liabilities” shall mean as to any Person any
obligation of such Person guaranteeing or intended to guarantee any
Indebtedness, dividends or other obligations (“primary obligations”) of any
Person (the “primary obligor”) in any manner, whether directly or indirectly,
including, without limitation, any obligation of such Person, whether or not
contingent; (a) to purchase any such primary obligation or any property
constituting direct or indirect security therefor; (b) to advance or supply
funds (i) for the purchase or payment of any such primary obligation or (ii) to
maintain working capital or equity capital of the primary obligor or otherwise
to maintain the net worth or solvency of the primary obligor; (c) to purchase
property, securities or services primarily for the purpose of assuring the
owner of any such primary obligation of the ability of the primary obligor to
make payment of such primary obligation; or (d) otherwise to assure or hold
harmless the owner of such primary obligation against loss in respect thereof, provided
however, that the term Contingent Liabilities shall not include endorsements of
instruments for deposit or collection in the ordinary course of business;
provided further, that, for purposes of calculating the financial covenants
contained in subsections 5.2(a) through (d), Contingent Liabilities shall exclude
all Off-Balance Sheet Liabilities of such Person except for the Adjusted
Off-Balance Sheet Liabilities of such Person. 
The amount of any Contingent Liability shall be deemed to be an amount
equal to the stated or determinable amount of the primary obligation in respect
of which such Contingent Liability is made or, if not stated or determinable,
the maximum reasonably anticipated liability in respect thereof (assuming such
Person is required to perform thereunder) as determined by such Person in good faith.

 

“Continuing Directors” shall mean, as of any date of
determination, any member of the Board of Directors of the Company who (i) was
a member of such Board of Directors on the Effective Date or (ii) was nominated
for election or elected to such Board of Directors with the approval of a
majority of the Continuing Directors who were members of such Board at the time
of such nomination or election.

 

“Contractual Obligation” shall mean, as to any Person, any
provision of any security issued by such Person or of any agreement, instrument
or other undertaking to which such Person is a party or by which it or any of
its property is bound.

 

“Corporate Base Rate” shall mean the per annum rate announced by
the Agent from time to time as its prime rate of interest, which need not be
the lowest rate of interest it charges any of its customers.  The Corporate Base Rate shall change
simultaneously with any change in such announced prime rate.  Notwithstanding the foregoing, for purposes
of determining the applicable Corporate Base Rate at any time for this
Agreement, the Corporate Base Rate shall not be less than 4.25%.

 

“Defaulting Lender” shall mean any Lender that fails to make
available to the Agent such Lender’s Loans required to be made hereunder or
shall have not made a payment required to be made to the Agent hereunder.  Once a Lender becomes a Defaulting Lender,
such Lender shall continue as a Defaulting Lender until such time as such
Defaulting Lender makes available to the

 

8

 

Agent the amount of such Defaulting Lender’s Loans and all other
amounts required to be paid to the Agent pursuant to this Agreement.

 

“Disqualified Stock” shall mean any Capital Stock that, by its
terms (or by the terms of any security into which it is convertible or for
which it is exchangeable), or upon the happening of any event, matures or is
mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or
redeemable at the option of the holder thereof, in whole or in part, or
otherwise has any distributions or other payments which are mandatory or
otherwise required at any time on or prior to the date that is one year after
the Term Loan Termination Date, provided that any payment that is required
solely due to a customary change of control provision not more restrictive than
the Change of Control default in this Agreement shall not cause such Capital
Stock to be deemed Disqualified Stock.

 

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

 

“Domestic Subsidiary” shall mean each present and future
Subsidiary of the Company which is not a Foreign Subsidiary.

 

“Earnouts” shall mean any payment which may be owing by the
Company in connection with any Acquisition, which payment is contingent upon
the earnings or other financial performance of the assets or stock being
acquired pursuant to such Acquisition.

 

“Effective Date” shall mean the effective date specified in the
first paragraph of this Agreement.

 

“Eligible Account Receivable” means an Account Receivable owing
to the Company or any Guarantor (other than Parent) which meets each of the
following requirements:

 

(1)           it
arises from the rendering of services by the Company or the applicable
Guarantor;

 

(2)           it
(a) is subject to a perfected Lien in favor of the Agent and (b) is not subject
to any other assignment, claim or Lien other than Permitted Liens;

 

(3)           it
is a valid, legally enforceable and unconditional obligation of the Account
Debtor with respect thereto, and is not subject to any counterclaim, credit,
allowance, discount, rebate or adjustment by the Account Debtor with respect
thereto, or to any claim by such Account Debtor denying liability thereunder in
whole or in part (provided, that in the event any counterclaim, credit,
allowance, rebate or adjustment is asserted, or discount is granted, the
Account Receivable shall only be ineligible pursuant to this clause (3)
to the extent of the same);

 

(4)           there
is no bankruptcy, insolvency or liquidation proceeding by or against the
Account Debtor with respect thereto;

 

9

 

(5)           the
Account Debtor with respect thereto is a resident or citizen of, and is located
within, the United States, unless the sale of services giving rise to such
Account Receivable is on letter of credit, banker’s acceptance or other credit
support terms reasonably satisfactory to the Agent;

 

(6)           it
arises in the ordinary course of business of the Company or the applicable
Guarantor;

 

(7)           if
the Account Debtor (other than “monthly parkers”) is the United States or any
department, agency or instrumentality thereof, the Company or the applicable
Guarantor has assigned its right to payment of such Account Receivable to the
Agent pursuant to the Assignment of Claims Act of 1940;

 

(8)           if
the Company maintains a credit limit for an Account Debtor, the aggregate
dollar amount of Accounts Receivable due from such Account Debtor, including
such Account Receivable, does not exceed such credit limit;

 

(9)           if
the Account Receivable is evidenced by chattel paper or an instrument, the
originals of such chattel paper or instrument shall have been endorsed and/or
assigned and delivered to the Agent in a manner satisfactory to the Agent;

 

(10)         such
Account Receivable is not more than (a) 60 days past the due date thereof or
(b) 90 days past the original invoice date thereof, in each case according to
the original terms of sale;

 

(11)         it
is not an Account Receivable with respect to an Account Debtor that is located
in any jurisdiction which has adopted a statute or other requirement with
respect to which any Person that obtains business from within such jurisdiction
must file a notice of business activities report or make any other required
filings in a timely manner in order to enforce its claims in such
jurisdiction’s courts unless such notice of business activities report has been
duly and timely filed or the Company or the applicable Guarantor is exempt from
filing such report and has provided the Agent with satisfactory evidence of
such exemption;

 

(12)         the
Account Debtor with respect thereto is not the Company or an Affiliate of the
Company, provided, that the aggregate Accounts Receivable of Affiliates
of the Company may be Eligible Accounts Receivable up to an aggregate amount of
$500,000, and to the extent that they comply with the other clauses of this
definition;

 

(13)         it
is not owed by an Account Debtor with respect to which 50% or more of the
aggregate amount of outstanding Accounts Receivable owed

 

10

 

at
such time by such Account Debtor is classified as ineligible under clause
(10) of this definition; and

 

(14)         if
the aggregate amount of all Accounts Receivable owed by the Account Debtor
thereon exceeds 25% of the aggregate amount of all Accounts Receivable at such
time, then all Accounts Receivable owed by such Account Debtor in excess of
such amount shall be deemed ineligible.

 

An Account Receivable which is at any time an
Eligible Account Receivable, but which subsequently fails to meet any of the
foregoing requirements, shall forthwith cease to be an Eligible Account
Receivable.  Any Account Receivable or
portion thereof which is not an Eligible Account Receivable, but for which the
Company corrects the condition or conditions prohibiting it from being an
Eligible Account Receivable (to the extent such condition or conditions are
correctable), shall forthwith be deemed an Eligible Account Receivable to the
extent it then meets all of the foregoing requirements for an Eligible Account
Receivable.  With respect to any Account
Receivable, if the Agent or the Revolving Lenders at any time hereafter
determine in their discretion that the prospect of payment or performance by
the Account Debtor with respect thereto is materially impaired for any reason
whatsoever, such Account Receivable shall cease to be an Eligible Account
Receivable after notice of such determination is given to the Company.

 

“Eligible Capital Improvement Receivable” shall mean a Capital
Improvement Receivable which meets the requirements of an Eligible Account
Receivable hereunder except that such Account Receivable may be more than 90
days past the original invoice date thereof.

 

“Environmental Laws” at any date shall mean all provisions of
law, statutes, ordinances, rules, regulations, judgments, writs, injunctions,
decrees, orders, awards and standards promulgated by the government of the
United States of America or any foreign government or by any state, province,
municipality or other political subdivision thereof or therein or by any court,
agency, instrumentality, regulatory authority or commission of any of the
foregoing concerning the protection of, or regulating the discharge of
hazardous substances into, the environment.

 

“ERISA” shall mean the Employee Retirement Income Security Act
of 1974, as amended from time to time, and the regulations thereunder.

 

“ERISA Affiliate” shall mean any trade or business (whether or
not incorporated) which, together with the Company or any Subsidiary of the
Company, would be treated as a single employer under Section 414 of the Code.

 

“Event of Default” shall mean any of the events or conditions
described in Section 6.1.

 

“Excess Cash Flow” shall mean Adjusted EBITDA minus Fixed
Charges, all as determined in accordance with Generally Accepted Accounting
Principles; provided that for purposes of subsection 5.2(l)(2) only, “Excess
Cash Flow” shall at all times be deemed to be $6,000,000.

 

11

 

“Facility Leases” shall mean agreements for the lease by the
Company or any of its Subsidiaries or Joint Ventures of real estate utilized as
a vehicle parking facility and/or for ancillary parking and transportation
services.

 

“Facility Management Agreement” shall mean any agreement (other
than the Facility Leases), for the provision by the Company or any of its
Subsidiaries or Joint Ventures of services for the management or operation of a
vehicle parking facility and/or ancillary parking and transportation services,
including without limitation any such agreement designated as a management
agreement, parking enforcement agreement, operating agreement or license
agreement.

 

“Federal Funds Rate” shall mean, for any day, an interest rate
per annum equal to the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal
funds brokers on such day, as published for such day (or, if such day is not a
Business Day, for the immediately preceding Business Day) by the Federal
Reserve Bank of New York, or, if such rate is not so published for any day
which is a Business Day, the average of the quotations at approximately 10:00
a.m. (Chicago time) on such day on such transactions received by the Agent from
three Federal funds brokers of recognized standing selected by the Agent in its
discretion.

 

“Fee Letter” shall mean that certain
letter agreement by and between the Company and the LaSalle, dated August 28,
2003, whereby the Company has agreed to pay an annual agency fee to LaSalle in
its capacity as Agent, and a post-closing arrangement fee to LaSalle in its
individual capacity, on the terms and conditions stated in such letter
agreement.

 

“Fixed Charge Coverage Ratio” shall mean, as of the last day of
any fiscal quarter of the Company, the ratio of (a) Adjusted EBITDA, to (b)
Fixed Charges, in each case as calculated for the four consecutive fiscal
quarters then ending, all as determined in accordance with Generally Accepted
Accounting Principles.

 

“Fixed Charges” shall mean, for any period, the sum, without
duplication, of (a) Net Interest Expense, plus (b) all payments of
principal and other sums required to be paid in cash during such period by the
Company or its Subsidiaries with respect to Indebtedness (excluding Off-Balance
Sheet Liabilities, any payments of the principal amount of the Term Loan and
any amounts used by the Company to redeem the 14% Notes as permitted by
subsection 5.2(p)) of the Company or its Subsidiaries, plus (c) Net
Capital Expenditures (minus the amount of any Ordinary Course Capital Leases
used to finance such Net Capital Expenditures) during such period by the
Company and its Subsidiaries, plus (d) all dividends, distributions and
other similar obligations actually paid in cash with respect to Capital Stock
(other than pursuant to subsections 5.2(l)(2), (4) and (5)), plus (e)
all payments which are actually paid in cash during such period by the Company
or its Subsidiaries pursuant to any Earnouts and any Adjusted Off-Balance Sheet
Liabilities, unless such amount has been previously deducted from Adjusted
EBITDA, plus (f) all accrued income taxes paid or payable in cash for
such period for the Company or its Subsidiaries.

 

12

 

“Foreign Subsidiary” shall mean any present or future Subsidiary
of the Company incorporated or formed in any jurisdiction other than any State
or other political subdivision of the United States of America.

 

“Generally Accepted Accounting Principles” shall mean generally
accepted accounting principles as in effect in the United States of America
from time to time, applied on a basis consistent (except for changes concurred
in by the Company’s independent public accountants) with the most recent
audited consolidated financial statements of the Company and its Subsidiaries
delivered to the Lenders.

 

“Guaranty” shall mean the Amended and Restated Guaranty entered
into by each existing, new or future Guarantor, for the benefit of the Agent
and the Lenders pursuant to this Agreement in substantially the form of Exhibit
A hereto, as such guaranty may be amended, restated, modified or supplemented
and in effect from time to time.

 

“Guarantor” shall mean the Parent, each present and future
Domestic Subsidiary of the Company (other than Atrium Parking, Inc., a Delaware
corporation, H&T Investment Group, Inc., an Ohio corporation, and S&J
Parking Company, an Illinois corporation), each other present and future Joint
Venture of the Company (other than any present or future Joint Venture of the
Company which is prohibited by its organizational documents from becoming a
Guarantor, and which shall be identified on Schedule 1.1-E attached
hereto), or any other Person executing a Guaranty at any time.

 

“Hazardous Material” is defined in Section 4.13.

 

“Holberg” shall mean, Holberg Industries, Inc., a Delaware
corporation.

 

“Holders” shall mean the record holders of the 14% Notes.

 

“Indebtedness” of any Person shall mean, as of any date, without
duplication, (a) all obligations of such Person for borrowed money or evidenced
by bonds, notes, debentures or similar instruments or letters of credit (or
reimbursement agreements in respect thereof) or bankers’ acceptances, (b) all
obligations of such Person as lessee under any Capital Lease or any Ordinary
Course Capital Lease, (c) all obligations which are secured by any Lien
existing on any asset or property of such Person whether or not the obligation
secured thereby shall have been assumed by such Person, provided that if such
Person shall not have assumed such obligation, then the amount of such
obligation determined pursuant to this clause (c) shall not exceed the value of
such encumbered asset or property, (d) the unpaid purchase price for goods,
property or services acquired by such Person, except for trade accounts and
accrued expenses payable arising in the ordinary course of business which are
not past due within customary payment terms, (e) all obligations of such Person
in respect of any Swap (valued in an amount equal to the highest termination
payment, if any that would be payable by such Person upon termination for any
reason on the date of determination), 
(f) all Earnouts, (g) all Disqualified Stock, (h) all Off-Balance Sheet
Liabilities, and (i) all Contingent Liabilities of such Person with respect to
or

 

13

 

relating to indebtedness, obligations and liabilities of others similar
in character to those described in clauses (a) through (h) of this definition.

 

“Interest Coverage Ratio” shall mean, as of the end of any fiscal
quarter, the ratio of (a) Adjusted EBITDA to (b) Net Interest Expense, in each
case as calculated for the four consecutive fiscal quarters then ending, all as
determined in accordance with Generally Accepted Accounting Principles.

 

“Interest Payment Date” shall mean (a) for any LIBOR Loan, the
last day of each LIBOR Interest Period with respect to such LIBOR Loan, and, in
the case of any LIBOR Interest Period exceeding three months, those days that
occur during such LIBOR Interest Period at intervals of three months after the
first day of such LIBOR Interest Period; and (b) in all other cases, the last
Business Day of each month occurring after the date hereof (except as otherwise
provided in subsection 3.2(c)), commencing on August 31, 2003 with respect to
the Revolving Credit Loans, and commencing on September 30, 2003 with respect
to the Term Loan.

 

“Joint Venture” shall mean any corporation, limited or general
partnership, limited liability company, association, trust or other business
entity of which the Company or one or more of its Subsidiaries owns
beneficially at least 25% but less than 100% of the Capital Stock.

 

“Lender Indebtedness” shall mean (a) the Revolving Credit
Advances, the Term Loan and all other indebtedness, obligations and liabilities
of the Company and of each Guarantor to the Agent or the Lenders under any Loan
Document, including without limitation, all amounts owed pursuant to any
Reimbursement Agreements, and (b) all indebtedness, obligations and liabilities
of the Company and of each Guarantor to any Lender in respect of any Swaps, in
all cases whether now outstanding or hereafter arising.

 

“Letter of Credit” shall mean a C/L/C or S/L/C having a stated
expiry date or a date upon which the draft must be reimbursed not later than
twelve months (provided that Letters of Credit which are automatically
renewable annually but may be canceled by the Agent annually are permissible)
after the date of issuance and not later than 25 days before the Revolving
Credit Termination Date (or such later date as the Agent may agree in its sole
discretion, and provided that any Letter of Credit so issued shall be
cash-collateralized or supported by another letter of credit issued by a bank
acceptable to the Agent and issued on other terms and conditions acceptable to
the Agent), issued by the Agent on behalf of the Revolving Lenders for the
account of the Company or a Subsidiary pursuant to subsection 2.1(a) under an
application and related documentation acceptable to the Agent requiring, among
other things, immediate reimbursement by the Company or a Subsidiary to the
Agent in respect of all drafts or other demand for payment honored thereunder
and all expenses paid or incurred by the Agent relative thereto.

 

“Letter of Credit Advance” shall mean any issuance of a Letter
of Credit under Section 2.4 and made pursuant to subsection 2.1(a) occurring
after the Effective Date in which each Revolving Lender acquires a pro rata
risk participation.

 

“Letter of Credit Documents” is defined in subsection 3.3(b).

 

14

 

“LIBOR” shall mean, with respect to any LIBOR Loan and the
related LIBOR Interest Period, the rate per annum obtained by dividing (i) the
per annum rate of interest at which deposits in Dollars for such LIBOR Interest
Period and in an aggregate amount comparable to the amount of the applicable
LIBOR Loan are published by Bloomberg’s Financial Markets Commodities News at
approximately 8:00 a.m. Chicago time on the third LIBOR Business Day prior to
the first day of such LIBOR Interest Period (or if not so published, Agent, in
its sole discretion, shall designate another daily financial or governmental
publication of national circulation to determine such rate); provided, however,
that after the first election of a LIBOR Interest Period with respect to any
LIBOR Loan, such per annum rate shall be determined at approximately 8:00 a.m.
Chicago time on the first LIBOR Business Day of the month for each LIBOR
Interest Period thereafter, by (ii) an amount equal to one minus the stated
maximum rate (expressed as a decimal) of all reserve requirements (including,
without limitation, any marginal, emergency, supplemental, special or other
reserves) that are specified on the first day of such LIBOR Interest Period by
the Board of Governors of the Federal Reserve System (or any successor agency
thereto) for determining the maximum reserve requirement with respect to
eurocurrency funding (currently referred to as “Eurocurrency liabilities” in
Regulation D of such Board) maintained by a member bank of such System;

 

all as conclusively determined by the
Agent.  Notwithstanding the foregoing,
for purposes of determining the applicable LIBOR at any time for this
Agreement, LIBOR shall not be less than 1.30%.

 

“LIBOR Business Day” shall mean, with respect to any LIBOR Loan,
a day which is both a Business Day and a day on which dealings in Dollar
deposits are carried out in the London interbank market.

 

“LIBOR Interest Period” shall mean, with respect to any LIBOR
Loan, the period commencing on the day such Loan is made or converted to a
LIBOR Loan and ending on the date one, two or three months thereafter, as the
Company may elect under Section 2.4 or 2.7, and each subsequent period
commencing on the last day of the immediately preceding LIBOR Interest Period
and ending on the date one, two or three months thereafter, as the Company may
elect under Section 2.4 or 2.7, provided, however, that (a) any LIBOR Interest
Period which commences on the last LIBOR Business Day of a calendar month (or
on any day for which there is no numerically corresponding day in the
appropriate subsequent calendar month) shall end on the last LIBOR Business Day
of the appropriate subsequent calendar month, (b) each LIBOR Interest Period
which would otherwise end on a day which is not a LIBOR Business Day shall end
on the next succeeding LIBOR Business Day or, if such next succeeding LIBOR
Business Day falls in the next succeeding calendar month, on the next preceding
LIBOR Business Day, and (c) no LIBOR Interest Period which would end after the
Revolving Credit Termination Date shall be permitted.

 

“LIBOR Loan” shall mean any Revolving Credit Loan which bears
interest at a rate equal to (i) the Applicable Margin, plus (ii) LIBOR,
as determined for the relevant LIBOR Interest Period.

 

15

 

“Lien” shall mean any pledge, assignment, hypothecation,
mortgage, security interest, deposit arrangement, option, conditional sale or
title retaining contract, sale and leaseback transaction, financing statement
filing, lessor’s or lessee’s interest under any capital lease or any other type
of lien, charge or encumbrance.

 

“Loans” shall mean the Term Loan and the Revolving Credit Loan.

 

“Loan Documents” shall mean, collectively, this Agreement, the
Notes, the Security Documents, the Bank Subordination Agreement and any other
agreement, instrument or document executed in connection with any of the
foregoing at any time, in each case, as the same may be amended, restated, modified
or supplemented and in effect from time to time.

 

“Material Adverse Effect” shall mean (i) a material adverse
effect on the property, business, operations, financial condition, liabilities,
prospects or capitalization of the Company and its Subsidiaries, taken as a
whole, (ii) a material adverse effect on the ability of the Company and the
Guarantors to perform their collective obligations under the Loan Documents
taken as a whole, or (iii) a material adverse effect on the rights and remedies
of the Agent or the Lenders under the Loan Documents.

 

“Multiemployer Plan” shall mean any “multiemployer plan” as
defined in Section 4001(a)(3) of ERISA or Section 414(f) of the Code.

 

“Net Book Value of Fixed Assets of the Company” shall mean, as
of any date of determination thereof, determined for the Company on a
consolidated basis, (a) the net book value of the Company’s fixed assets as of
such date, less (b) the net book value as of such date of the cost of contracts
acquired, to the extent that such cost of contracts acquired is reflected as
fixed assets in the books of the Company.

 

“Net Capital Expenditures” shall mean Capital Expenditures,
exclusive of any such Capital Expenditures financed on a non-recourse basis
(i.e., on customary non-recourse terms and with recourse solely to the asset
being financed with such non-recourse debt) by third parties which are not
Affiliates of the Company, and, as may be permitted by the Agent in writing,
exclusive of any Capital Expenditures to complete a Permitted Acquisition.

 

“Net Cash Proceeds” shall mean, (a) in connection with any sale
or other disposition of any asset or any settlement by, or receipt of payment
in respect of, any property insurance claim or condemnation award, the cash
proceeds (including any cash payments received by way of deferred payment of
principal pursuant to a note or installment receivable or purchase price
adjustment receivable or otherwise, but only as and when received) of such
sale, settlement or payment, net of reasonable and documented attorneys’ fees,
accountants’ fees, investment banking fees, amounts required to be applied to
the repayment of Indebtedness secured by a Lien expressly permitted hereunder
on any asset which is the subject of such sale, insurance claim or condemnation
award (other than any Lien in favor of the Agent for the benefit of the Agent
and the Lenders) and other customary fees actually incurred in connection
therewith and net of taxes paid or reasonably estimated to be payable as a
result thereof and (b) in connection with any

 

16

 

issuance or sale of any equity securities or debt securities or
instruments or the incurrence of loans, the cash proceeds received from such
issuance or incurrence, net of investment banking fees, reasonable and
documented attorneys’ fees, accountants’ fees, underwriting discounts and
commissions and other reasonable and customary fees and expenses actually
incurred in connection therewith.

 

“Net Income” shall mean, for any period, the net income (or
loss) of the Company and its Subsidiaries on a consolidated basis for such
period taken as a single accounting period, determined in accordance with
Generally Accepted Accounting Principles.

 

“Net Interest Expense” shall mean, for any period, payments in
cash or Cash Equivalents for (i) total interest and related expense with
respect to the Indebtedness (excluding Off-Balance Sheet Liabilities except for
Adjusted Off-Balance Sheet Liabilities), (ii) all dividends, redemptions and
other distributions or other payments of any kind due and actually paid on the
Preferred Stock, other than any redemption of Series C Preferred Stock pursuant
to subsection 5.2(l)(4), (iii) the interest portion of any deferred payment
obligations, (iv) all commissions, discounts and other fees and charges owed
with respect to letter of credit and bankers acceptance financing, (v) the net
costs and net payments under any Swap or similar agreement or arrangement, and
(vi) prepayment charges, agency fees, administrative fees, commitment fees and
capitalized transaction costs allocated to interest expense, paid, payable or
accrued during such period (excluding all such charges, fees, costs and
expenses incurred with respect to consummating this Agreement and the
underlying transactions), without duplication for any other period, with
respect to all outstanding Indebtedness and Preferred Stock of the Company and
its Subsidiaries, net of any cash interest income of the Company and its
Subsidiaries, all as determined for the Company and its Subsidiaries on a
consolidated basis for such period in accordance with Generally Accepted
Accounting Principles.

 

“Notes” shall mean the Revolving Credit Notes and the Term
Notes, and “Note” shall mean any one Revolving Credit Note or Term Note.

 

“Off-Balance Sheet Liabilities” of a Person shall mean, without
duplication, (a) Receivables Facility Attributed Indebtedness and any
repurchase obligation or liability of such Person or any of its Subsidiaries
with respect to Accounts Receivable or notes receivable sold by such Person or
any of its Subsidiaries (calculated to include the unrecovered investment of
purchasers or transferees of Accounts Receivable or any other obligation of
such Person or such transferor to purchasers/transferees of interests in
Accounts Receivable or notes receivable or the agent for such
purchasers/transferees), (b) any liability of such Person or any of its
Subsidiaries under any sale and leaseback transactions which do not create a
liability on the consolidated balance sheet of such Person, (c) any liability
of such Person or any of its Subsidiaries under any financing lease or
so-called “synthetic” lease transaction, or (d) any obligations of such Person
or any of its Subsidiaries arising with respect to any other transaction which
is the functional equivalent of or takes the place of borrowing but which does
not constitute a liability on the consolidated balance sheets of such Person
and its Subsidiaries.

 

17

 

“Ordinary Course Capital Lease” shall mean a Capital Lease of
equipment or motor vehicles entered into by the Company or its Subsidiaries or
Joint Ventures in the ordinary course of business in connection with performing
its obligations under a Facility Management Agreement or a Facility Lease.

 

“Ordinary Course Equipment Lease” shall mean an operating lease
of equipment or motor vehicles entered into by the Company or its Subsidiaries
or Joint Ventures in the ordinary course of business in connection with
performing its obligations under a Facility Management Agreement or a Facility
Lease.

 

“Ordinary Course Lease Termination” shall mean (i) the
termination of an Ordinary Course Equipment Lease or an Ordinary Course Capital
Lease pursuant to either (a) the termination of the related Facility Management
Agreement or Facility Lease, or (b) a material modification of the related
Facility Management Agreement or Facility Lease such that the items of
equipment or motor vehicles which are leased under such Ordinary Course Equipment
Lease or Ordinary Course Capital Lease are no longer needed or useful for the
purposes of performance under such Facility Management Agreement or Facility
Lease by the Company or the applicable Subsidiary, and (ii) termination of a
Facility Lease or Facility Management Agreement that is no longer needed or
useful in the business judgment of the Company.

 

“Ordinary Course Lease Termination Payments” shall mean payments
of liquidated damages or accelerated rentals or similar amounts which are paid
under the terms of an Ordinary Course Equipment Lease, Ordinary Course Capital
Lease, Facility Management Agreement or Facility Lease pursuant to an Ordinary
Course Lease Termination thereof at or prior to expiration of the
then-applicable respective terms thereunder.

 

“Overdue Rate” shall mean (a) in respect of principal of
Adjusted Corporate Base Rate Loans, a rate per annum that is equal to the sum
of two percent (2%) per annum plus the Adjusted Corporate Base Rate, (b) in
respect of principal of LIBOR Loans, a rate per annum that is equal to the sum
of two percent (2%) per annum plus the per annum rate in effect thereon until
the end of the then current LIBOR Interest Period for such Revolving Credit
Loan and, thereafter, a rate per annum that is equal to the sum of two percent
(2%) per annum plus the Adjusted Corporate Base Rate, (c) in respect of the
Term Loan Interest Rate (as defined in subsection 3.2(c)) on the Term Loan, a
rate per annum that is equal to two percent (2%) per annum plus the Term Loan
Interest Rate, and (d) in respect of other amounts payable by the Company
hereunder (other than interest), a per annum rate that is equal to the sum of
two percent (2%) per annum plus the Adjusted Corporate Base Rate.

 

“Parent” shall mean AP Holdings, Inc., a Delaware corporation.

 

“Parent’s Senior Discount Notes” shall mean the 11 1/4% Senior
Discount Notes due 2008 issued by the Parent in the original aggregate
principal amount of $70,000,000, as the same may be amended, restated, modified
or supplemented and in effect from time to time.

 

18

 

“PBGC” shall mean the Pension Benefit Guaranty Corporation and
any entity succeeding to any or all of its functions under ERISA.

 

“Permitted Acquisition” shall mean an Acquisition by the Company
or a Guarantor of all or substantially all of the assets or stock of a Person
which meets the requirements set forth in subsection 5.2(g) of this Agreement.

 

“Permitted Affiliate Loans” shall mean loans or advances to
Affiliates of the Company, Principals or Related Parties made with proceeds of
the Term Loan, which have been approved by the Company’s Board of Directors,
and are for purposes, are in an aggregate amount, and are on terms and
conditions, which have been approved by the Required Lenders in writing.

 

“Permitted Liens” shall mean Liens permitted by subsection
5.2(f) hereof.

 

“Person” shall include an individual, a corporation, a limited
liability company, an association, a partnership, a trust or estate, a joint
stock company, an unincorporated organization, a joint venture, a trade or
business (whether or not incorporated), a government (foreign or domestic) and
any agency or political subdivision thereof, or any other entity.

 

“Plan” shall mean any pension plan (including without limitation
any Multiemployer Plan) subject to Title IV of ERISA or to the minimum funding
standards of Section 412 of the Code which has been established or maintained
by the Company, any Subsidiary of the Company or any ERISA Affiliate, or by any
other Person if the Company, any Subsidiary of the Company or any ERISA
Affiliate contributes or could have liability with respect to such pension
plan.

 

“Pledge Agreements” shall mean the (i) Amended and Restated
Pledge Agreement entered into by the Company substantially in the form attached
hereto as Exhibit B-1, and (ii) the Amended and Restated Pledge Agreement
entered into by the existing Guarantors, or to be entered into by any new or
future Guarantor, substantially in the form attached hereto as Exhibit B-2,
(iii) the Limited Liability Company Membership Interests Security Agreement
entered into by the Company substantially in the form attached hereto as
Exhibit B-3, (iv) Assignment of Partnership Interest Security Agreement entered
into by the Company substantially in the form attached hereto as Exhibit B-4,
(v) Joint Venture Interest Security Agreement entered into by the Company
substantially in the form attached hereto as Exhibit B-5, each for the benefit
of the Agent and the Lenders pursuant to the Existing Credit Agreement (as
restated by this Agreement), as each may be amended, restated,  modified or supplemented and in effect from
time to time.

 

“Preferred Stock” shall mean, the Series C Preferred Stock and
the Series D Preferred Stock.

 

“Preferred Stock Documents” shall mean all of the agreements,
documents and instruments relating in any way to the Preferred Stock.

 

19

 

“Principals” shall mean John V. Holten, Steamboat, the Parent
and their respective Related Parties.

 

“Pro Forma Financial Statements” shall mean the pro forma
financial statements and projections prepared by the Company attached hereto as
Schedule 1.1-D.

 

“Prohibited Transaction” shall mean any transaction involving
any Plan which is proscribed by Section 406 of ERISA or Section 4975 of the
Code.

 

“Real Estate” shall mean all real property at any time owned or
leased (as lessee or sublessee) or managed by the Company or any of its
Subsidiaries.

 

“Receivables Facility Attributed Indebtedness” shall mean the
amount of obligations outstanding under a receivables purchase facility on any
date of determination that would be characterized as principal if such facility
were structured as a secured lending transaction rather than as a purchase.

 

“Reimbursement Agreements” shall mean the letter of credit
applications and reimbursement agreements executed in connection with any
Letters of Credit, as each such application or agreement may be amended,
restated, modified or supplemented and in effect from time to time.

 

“Related Party” with respect to any Principal shall mean (a) any
controlling stockholder, 80% (or more) owned Subsidiary, or spouse or immediate
family member (in the case of an individual) of such Principal or (b) any
trust, corporation, partnership or other entity, the beneficiaries,
stockholders, partners, owners or Persons beneficially holding an 80% or more
controlling interest of which consist of such Principal and/or such other
Persons referred to in the immediately preceding clause (a).

 

“Reportable Event” shall mean a reportable event as described in
Section 4043(b) of ERISA including without limitation those events as to which
the thirty (30) day notice period is waived under Part 2615 of the regulations
promulgated by the PBGC under ERISA.

 

“Required Lenders” shall mean both (i) Lenders, other than
Defaulting Lenders, holding not less than 50.1% of the Revolving Commitments
(or 50.1% of the aggregate outstanding amount of the Revolving Credit Advances
if the Revolving Commitments have been terminated), and (ii) Lenders, other
than Defaulting Lenders, holding not less than 50.1% of the Term Loan
Commitments (or 50.1% of the aggregate outstanding amount of the Term Loan if
the Term Loan Commitments have been terminated).

 

“Required Revolving Lenders” shall mean Lenders, other than
Defaulting Lenders, holding not less than 62.5% of the Revolving Commitments
(or 62.5% of the aggregate outstanding amount of the Revolving Credit Advances
if the Revolving Commitments have been terminated).

 

20

 

“Required Term Loan Lenders” shall mean Lenders, other than
Defaulting Lenders, holding not less than 50.1% of the Term Loan Commitments
(or 50.1% of the outstanding amount of the Term Loans if the Term Loan
Commitments have been terminated).

 

“Requirement of Law” shall mean as to any Person, the
certificate of incorporation and by-laws or other organizational or governing
documents of such Person, and any law, treaty, rule or regulation or determination
of an arbitrator or a court or other governmental authority, in each case
applicable to or binding upon, such Person or any of its property or to which
such Person or any of its property is subject.

 

“Revolving Commitments” shall mean, with respect to each Lender,
the commitment (if any) of such Lender to make Revolving Credit Loans, and to
participate in Letter of Credit Advances in amounts not exceeding, in the
aggregate at any time, the Revolving Commitment amount for such Lender set
forth next to the name of such Lender on the signature pages hereof, or, as to
any Lender becoming a party hereto after the Effective Date, as set forth in
the applicable Assignment and Acceptance, in each case as reduced pursuant to
Section 2.2 or modified pursuant to Section 8.6.  To the extent not specifically provided herein, each reference to
a Lender’s Revolving Commitment at any time after all of the Revolving
Commitments have been terminated pursuant to the terms of this Agreement shall
be deemed a reference to such Lender’s share of the then outstanding principal
balance of the Revolving Credit Loans plus such Lenders’ share of the
obligations to purchase participations in Letters of Credit.

 

“Revolving Credit Advance” shall mean any Revolving Credit Loan
and any Letter of Credit Advance.

 

“Revolving Credit Loan” shall mean any borrowing under Section
2.4 evidenced by the Revolving Credit Notes and made pursuant to subsection
2.1(a).  Any such Revolving Credit Loan
or portion thereof may be denominated as an Adjusted Corporate Base Rate Loan
or a LIBOR Loan and such Adjusted Corporate Base Rate Loans and LIBOR Loans are
referred to herein as “types” of Revolving Credit Loans.

 

“Revolving Credit Notes” shall mean the promissory notes of the
Company to each Revolving Lender evidencing such Lender’s Revolving Credit
Loans, in substantially the form annexed hereto as Exhibit C, as each such note
may be amended, restated, modified or supplemented and in effect from time to
time, together with any promissory note or notes issued in exchange or
replacement therefor, and “Revolving Credit Note” shall mean any one of such
Revolving Credit Notes.

 

“Revolving Credit Termination Date” shall mean the earlier to
occur of (i) June 30, 2006, and (ii) the date on which the Revolving Commitments
shall be terminated pursuant to Section 2.2 or 6.2.

 

“Revolving Lenders” shall mean any Lender with a Revolving
Commitment (or, if the Revolving Commitments have terminated, any Lender
holding any Revolving Credit Advances).

 

“SEC” shall mean the Securities and Exchange Commission or any
successor agency.

 

21

 

“Securities Act” shall mean the Securities Act of 1933, as
amended.

 

“Security Agreements” shall mean each (i) Amended and Restated
Security Agreement entered into by the Company substantially in the form
attached hereto as Exhibit E-1; (ii) Amended and Restated Security Agreement
entered into by each existing, new or future Guarantor substantially in the
form attached hereto as Exhibit E-2; (iii) Amended and Restated Patent
Collateral Security and Pledge Agreement entered into by the Company
substantially in the form attached hereto as Exhibit F-1; (iv) Amended and
Restated Trademark Collateral Security and Pledge Agreement entered into by the
Company substantially in the form attached hereto as Exhibit F-2; (v) Amended
and Restated Memorandum of Grant of Security Interest in Copyrights entered
into by the Company substantially in the form attached hereto as Exhibit F-3,
each for the benefit of the Agent and the Lenders pursuant to this Agreement,
as each such agreement may be amended, restated, modified or supplemented and
in effect from time to time, and any other agreement executed by the Company or
the Guarantors granting a Lien for the benefit of the Agent and the Lenders in
form and substance satisfactory to the Agent, as amended, restated, modified or
supplemented and in effect from time to time.

 

“Security Documents” shall mean the Pledge Agreements, the
Security Agreements, the Guaranties, the Reimbursement Agreements, and all
other agreements, instruments and documents delivered pursuant to this
Agreement or otherwise entered into by any Person to secure or guaranty the
obligations of the Company under this Agreement, in each case, as amended,
restated, modified or supplemented and in effect from time to time.

 

“Senior Debt” shall mean all Indebtedness of the Company and its
Subsidiaries to the Lenders existing pursuant to this Agreement.

 

“Senior Debt to Adjusted EBITDA Ratio” shall mean, at any time,
the ratio of (a) Senior Debt at such time to (b) Adjusted EBITDA, as calculated
as of the four most recently completed fiscal quarters of the Company, all as
determined in accordance with Generally Accepted Accounting Principles.

 

“Series C Preferred Stock” shall mean
the Series C preferred stock of the Company issued in accordance with the
certificate of designation attached hereto as Schedule 1.1 -A-1.

 

“Series D Preferred Stock” shall mean
the Series D preferred stock of the Company issued in accordance with the
certificate of designation attached hereto as Schedule 1.1 -A-2.

 

“S/L/C” shall mean any standby letter of credit issued
hereunder, as amended from time to time.

 

“Steamboat” shall mean Steamboat Holdings, Inc., a Delaware
corporation, and as of the Closing Date, the owner of 100% of the outstanding
common stock of Parent.

 

“Subordinated Debt” shall mean, for any Person, any Indebtedness
of such Person which is fully subordinated to all Indebtedness of such Person
owing to the Agent and the Lenders, by written agreements and documents in form
and substance satisfactory to the Required Lenders

 

22

 

and which is governed by terms and provisions, including without
limitation maturities, covenants, defaults, rates and fees, acceptable to the
Agent and the Required Lenders, and shall include, without limitation, all
Indebtedness owing pursuant to the 14% Notes and the 9 1/4% Notes.

 

“Subordinated Debt Documents” shall mean the 14% Note Documents,
the 9 1/4% Note Documents and any other agreement or document evidencing or
relating to any Subordinated Debt, whether under the 14% Notes and the 9 1/4%
Notes, in each case, as the same may be amended, restated, modified or
supplemented and in effect from time to time as permitted by the terms hereof.

 

“Subsidiary” of any Person shall mean any other Person (whether
now existing or hereafter organized or acquired) in which at least a majority
of the securities or other ownership interests of each class having ordinary
voting power or analogous right (other than securities or other ownership
interests which have such power or right only by reason of the happening of a
contingency), at the time as of which any determination is being made, are
owned, beneficially and of record, by such Person or by one or more of the
other Subsidiaries of such Person or by any combination thereof.

 

“Swap” means an agreement, device or arrangement providing for
payments which are related to fluctuations of interest rates, exchange rates or
forward rates, including, but not limited to, dollar-denominated or
cross-currency interest rate exchange agreements, forward currency exchange
agreements, interest rate cap or collar protection agreements, forward rate
currency or interest rate options, puts and warrants.

 

“Term Loan” shall mean the term loan made pursuant to subsection
2.1(b).  At the option of each Term Loan
Lender, the portion of the Term Loan made by each such Lender shall be
evidenced by a Term Note.

 

“Term Loan Commitments” shall mean, with respect to each Lender,
the commitment (if any) of such Lender to make a Term Loan in an amount not
exceeding the Term Loan Commitment of such Lender set forth next to the name of
such Lender on the signature pages hereof, or, as to any Lender becoming a
party hereto after the Effective Date, as set forth in the applicable
Assignment and Acceptance, in each case as reduced pursuant to Section 2.2 or
modified pursuant to Section 8.6.  To
the extent not specifically provided herein, each reference to a Lender’s Term
Loan Commitment at any time after the Closing Date shall be deemed a reference
to such Lender’s share of the then outstanding principal balance of the Term
Loan.

 

“Term Loan Interest Rate” is defined in subsection 3.2(c).

 

“Term Loan Lender” shall mean any Lender with a Term Loan
Commitment (or, if the Term Loan Commitments have terminated, any Lender
holding any unpaid portion of the Term Loan).

 

23

 

“Term Loan Termination Date” shall mean the earlier to occur of
(i) July 31, 2006, and (ii) the date on which the Revolving Commitments shall
be terminated in full pursuant to Section 2.2 or 6.2.

 

“Term Notes” shall mean the promissory notes of the Company to
any Lender evidencing such Lender’s Term Loan, in substantially the form
annexed hereto as Exhibit D, as amended, restated, modified or supplemented and
in effect from time to time and together with any promissory note or notes
issued in exchange or replacement therefor, and “Term Note” shall mean any one
of such Term Notes.

 

“Total Assets” shall mean, at any time, the consolidated assets
of the Company and its Subsidiaries, determined in accordance with Generally
Accepted Accounting Principles.

 

“Unfunded Benefit Liabilities” shall mean, with respect to any
Plan as of any date, the amount of the unfunded benefit liabilities determined
in accordance with Generally Accepted Accounting Principles.

 

“Unmatured Event” shall mean any event or condition which might
become an Event of Default with notice or lapse of time or both.

 

“Voting Stock” shall mean any Capital Stock, the holders of
which are at the time entitled, as such holders, to vote for the election of a
majority of the directors (or persons performing similar functions) of the
corporation, association, trust or other business entity involved, whether or
not the right so to vote exists by reasoning of the happening of a contingency.

 

“Wholly Owned Subsidiary” shall mean any Subsidiary of the
Company of which 100% of the Voting Stock, exclusive of directors’ qualifying
shares, is owned by the Company or by another Wholly Owned Subsidiary of the
Company.

 

1.2           Other Definitions; Rules of Construction.  As used herein, the terms “Agent”,
“Lenders”, “Company”, and “this Agreement” shall have the respective meanings
ascribed thereto in the introductory paragraph of this Agreement.  Such terms, together with the other terms
defined in Section 1.1, shall include both the singular and the plural forms
thereof and shall be construed accordingly. 
Use of the terms “herein”, “hereof”, and “hereunder” shall be deemed
references to this Agreement in its entirety and not to the Section or clause
in which such term appears.  References
to “Sections”, “subsections”, “Exhibits”, and “Schedules” shall be to Sections,
subsections, Exhibits and Schedules, respectively, of this Agreement unless
otherwise specifically provided.

 

1.3           Accounting Terms and Determinations.

 

(a)           Except as otherwise
expressly provided herein, all accounting terms used herein shall be
interpreted, and all financial statements and certificates and reports as to
financial matters required to be delivered to the Lenders hereunder shall
(unless otherwise disclosed to the Lenders in writing at the time of delivery
thereof in the manner described in subsection (b)

 

24

 

below) be
prepared, in accordance with Generally Accepted Accounting Principles; provided
that, if the Company notifies the Agent that it wishes to amend any covenant in
Article V to eliminate the effect of any change in Generally Accepted
Accounting Principles (or if the Agent notifies the Company that the Required
Lenders or Required Revolving Lenders, as applicable, wish to amend Article V
for such purpose), then the Company’s compliance with such covenants shall be
determined on the basis of Generally Accepted Accounting Principles in effect
immediately before the relevant change in Generally Accepted Accounting
Principles became effective until either such notice is withdrawn or such
covenant or any such defined term is amended in a manner satisfactory to the
Company and the Required Lenders or Required Revolving Lenders, as
applicable.  Except as otherwise
expressly provided herein, all references to a time of day shall be references
to Chicago, Illinois time.

 

(b)           The Company shall
deliver to the Lenders at the same time as the delivery of any annual or
quarterly financial statement under subsection 5.1(d) hereof (i) a description
in reasonable detail of any material variation between the application or other
modification of accounting principles employed in the preparation of such
statement and the application or other modification of accounting principles
employed in the preparation of the immediately prior annual or quarterly
financial statements as to which no objection has been made in accordance with
the last sentence of subsection (a) above and (ii) reasonable estimates of the
difference between such statements arising as a consequence thereof.

 

(c)           To enable the ready and
consistent determination of compliance with the covenants set forth in Section
5.2 hereof, the Company will not change the last day of its fiscal year from
December 31 of each year, or the last days of the first three fiscal quarters
in each of its fiscal years from March 31, June 30, and September 30 of each
year, respectively.

 

ARTICLE II

 

THE COMMITMENTS AND THE ADVANCES

 

2.1           Commitments
of the Lenders.

 

(a)           Revolving Credit
Advances.  Each Revolving Lender
agrees, for itself only, subject to the terms and conditions of this Agreement,
to make Revolving Credit Loans to the Company pursuant to Section 2.4 and to
participate in Letter of Credit Advances to the Company pursuant to Section
3.3, from time to time from and including the Closing Date to but excluding the
Revolving Credit Termination Date, not to exceed in aggregate principal amount
at any time outstanding such Revolving Lender’s pro rata share of the amount
determined pursuant to subsection 2.1(c).

 

(b)           Term Loan.  The Term Loan Lenders agree, subject to the
terms and conditions of this Agreement, to make a term loan in favor of the
Company (“Term Loan”) on the Closing Date in aggregate principal amount
of  $32,000,000.  The Term Loan Commitments shall expire
concurrently with the making of the Term Loan on the Closing Date.  Amounts repaid on the Term Loans may not be
reborrowed.

 

25

 

(c)           Limitation on Amount
of Revolving Credit Advances. 
Notwithstanding anything in this Agreement to the contrary, (i) the
aggregate principal amount of the Revolving Credit Advances at any time
outstanding to the Company shall not exceed the lesser of (A) the aggregate
amount of the Revolving Commitments at such time, or (B) the Borrowing Base at
such time, and (ii) the aggregate principal amount of Letter of Credit Advances
outstanding at any time shall not exceed $30,000,000.

 

2.2           Termination
and Reduction of Commitments and the Term Loan.

 

(a)           The Company shall have
the right to terminate or reduce the Revolving Commitments at any time and from
time to time, provided that (i) the Company shall give notice of such
termination or reduction to the Agent specifying the amount and effective date
thereof, (ii) each partial reduction thereof shall be in a minimum amount of
$5,000,000 and in an integral multiple of $1,000,000 and shall reduce such
Revolving Commitments of all of the Revolving Lenders proportionately in
accordance with their respective Revolving Commitments, (iii) no such
termination or reduction shall be permitted with respect to any portion of any
such Revolving Commitments as to which a request for a Revolving Credit Advance
pursuant to Section 2.4 is then pending, and (iv) the Revolving Commitments may
not be terminated if any Revolving Credit Advances are then outstanding and may
not be reduced below the principal amount of Revolving Credit Advances then
outstanding.  The Revolving Commitments
or any portion thereof terminated or reduced pursuant to this Section 2.2, may
not be reinstated.

 

(b)           For purposes of this
Agreement, a Letter of Credit Advance (i)
shall be deemed outstanding in an amount equal to the sum of the maximum amount
available to be drawn under the related Letter of Credit on or after the date
of determination and on or before the stated expiry date thereof plus the
amount of any draws under such Letter of Credit that have not been reimbursed
as provided in Section 3.3 and (ii) shall be deemed outstanding at all times on
and before such stated expiry date or such earlier date on which all amounts
available to be drawn under such Letter of Credit have been fully drawn, and
thereafter until all related reimbursement obligations have been paid pursuant
to Section 3.3.  As provided in Section
3.3, upon each payment made by the Agent in respect of any draft or other
demand for payment under any Letter of Credit the amount of any Letter of
Credit outstanding immediately prior to such payment shall be automatically
reduced by the amount of each Revolving Credit Loan deemed advanced in respect
of the related reimbursement obligation of the Company.

 

(c)           Subject to subsection
3.1(a)(ii), the Company shall not prepay the Term Loan at any time prior to the
repayment in full of the Revolving Credit Advances and the termination of the
Revolving Commitments, unless the Agent shall otherwise agree.

 

2.3           Fees.

 

(a)           The Company agrees to
pay to the Agent, for the pro rata benefit of the Revolving Lenders, a
commitment fee on the daily average unused amount of the Revolving Commitments,
for the period from the Effective Date to but excluding the Revolving Credit
Termination Date, at a rate equal to 37.5 basis points per annum.  For purposes of this subsection

 

26

 

2.3(c), all
Letters of Credit shall be considered usage of the Revolving Commitments.  Such accrued commitment fees shall be
payable quarterly in arrears on the last Business Day of each March, June,
September and December, commencing on September 30, 2003, and on the Revolving
Credit Termination Date.

 

(b)           The Company agrees to
pay to the Agent, with respect to Letters of Credit, a per annum fee, computed
at a rate equal to the Applicable Margin for LIBOR Loans, calculated on the
maximum amount available to be drawn from time to time under a Letter of Credit, which fee shall be paid quarterly in
arrears on the last Business Day of each March, June, September and December
for the period from and including the date of issuance of such Letter of
Credit, to and including the
stated expiry date of such Letter of Credit, which fees shall be for the pro rata benefit of the Revolving
Lenders, provided that a fee computed at the rate of 0.25% per annum calculated
on the face amount of each Letter of Credit shall be retained from such fee
solely for the account of the Agent at any time when two or more Lenders hold
Revolving Commitments.  Such fees are nonrefundable and the
Company shall not be entitled to any rebate of any portion thereof if such
Letter of Credit does not remain outstanding through its stated expiry date or
for any other reason.  The Company
further agrees to pay to the Agent for its own account, on demand, such other
customary administrative fees, charges and expenses of the Agent in respect of
the issuance, negotiation, acceptance, amendment, transfer and payment of such
Letter of Credit or otherwise payable pursuant to the application and related
documentation under which such Letter of Credit is issued.

 

(c)           The Company agrees to
pay to the Agent, for the benefit of the Term Loan Lenders, the commitment fees
in the amounts and at the times stated in that certain letter dated August 28,
2003, by and between the Company and the Agent.

 

(d)           The Company agrees to
pay to the Agent closing and agency fees for its services as Agent under this
Agreement and for other services in the amounts and at the times stated in the
Fee Letter, and such other amounts as may from time to time be agreed to in
writing between the Company and the Agent.

 

2.4           Disbursement
of Revolving Credit Advances; Loans Evidenced by Notes.

 

(a)           The Company shall give
the Agent notice of its request for each Revolving Credit Advance in
substantially the form of Exhibit G hereto not later than noon Chicago time (i)
three LIBOR Business Days prior to the date such Revolving Credit Advance is
requested to be made if such Revolving Credit Advance is to be made as a LIBOR
Borrowing, (ii) five (5) Business Days prior to the date any Letter of Credit
Advance is requested to be made, or such earlier date as reasonably determined
by the Agent, and (iii) on the Business Day such Revolving Credit Advance is
requested to be made in all other cases, which notice shall specify whether a
LIBOR Borrowing, an Adjusted Corporate Base Rate Borrowing or a Letter of
Credit Advance is requested and, in the case of each requested LIBOR Borrowing,
the LIBOR Interest Period to be initially applicable to such Borrowing and, in
the case of each Letter of Credit Advance, such information as may be necessary
for the issuance thereof by the Agent. 
The Agent, reasonably promptly on the same Business Day such notice is
given, shall provide notice of such requested

 

27

 

Revolving Credit
Advance to the Revolving Lenders. 
Subject to the terms and conditions of this Agreement, the proceeds of
each such requested Revolving Credit Advance shall be made available to the
Company by depositing the proceeds thereof, in immediately available funds, in
an account maintained and designated by the Company at the principal office of
the Agent.  Subject to the terms and
conditions of this Agreement, the Agent shall, on the date such Letter of
Credit Advance is requested to be made, issue the related Letter of Credit on
behalf of the Revolving Lenders for the account of the Company.  Notwithstanding anything herein to the
contrary, the Agent may decline to issue any requested Letter of Credit on the
basis that the beneficiary, the purpose of issuance or the terms or the
conditions of drawing are unacceptable to it in its reasonable discretion,
provided that the Agent shall not unreasonably decline to issue a Letter of
Credit pursuant to this sentence.

 

(b)           Each Revolving Lender,
not later than 2:00 p.m. Chicago time on the date any Borrowing in the form of
a Revolving Credit Loan is required to be made, shall make its pro rata share
of such Borrowing available in immediately available funds at the principal
office of the Agent for disbursement to the Company.  Unless the Agent shall have received notice from any Revolving
Lender prior to the date such Borrowing is requested to be made under this
Section 2.4 that such Lender will not make available to the Agent such Lender’s
pro rata portion of such Borrowing, the Agent may assume that such Lender has
made such portion available to the Agent on the date such Borrowing is
requested to be made in accordance with this Section 2.4.  If and to the extent such Lender shall not
have so made such pro rata portion available to the Agent, the Agent may (but shall
not be obligated to) make such amount available to the Company, and such Lender
and the Company severally agree to pay to the Agent forthwith on demand such
amount together with interest thereon, for each day from the date such amount
is made available to the Company by the Agent until the date such amount is
repaid to the Agent, at a rate per annum equal to, in the case of the Company,
the interest rate applicable to such Borrowing during such period and, in the
case of any Revolving Lender, at the Federal Funds Rate for the first five days
and at the interest rate applicable to such Borrowing thereafter.  If such Lender shall pay such amount to the
Agent together with interest, such amount so paid shall constitute a Revolving
Credit Loan by such Lender as a part of such Borrowing for purposes of this
Agreement.  The failure of any Revolving
Lender to make its pro rata portion of any such Borrowing available to the
Agent shall not relieve any other Revolving Lender of its obligations to make
available its pro rata portion of such Borrowing on the date such Borrowing is
requested to be made, but no Revolving Lender shall be responsible for failure
of any other Revolving Lender to make such pro rata portion available to the
Agent on the date of any such Borrowing.

 

(c)           Nothing in this
Agreement shall be construed to require or authorize any Lender to issue any
Letter of Credit, it being recognized that the Agent has the sole obligation
under this Agreement to issue Letters of Credit for the risk of the
Lenders.  Upon issuance of a Letter of
Credit by the Agent, each Revolving Lender shall automatically acquire a pro
rata risk participation interest in such Letter of Credit Advance based on its respective Revolving
Commitment.  If the Agent shall honor a
draft or other demand for payment presented or made under any Letter of Credit, the Agent shall provide notice
thereof to each Revolving Lender on the date such draft or demand is honored
unless the Company or any of its Subsidiaries shall have satisfied its
reimbursement obligation under Section 3.3 by payment to the Agent on such

 

28

 

date.  Each Revolving Lender, on such date, shall
make its pro rata share of the amount paid by the Agent available in
immediately available funds at the principal office of the Agent for the
account of the Agent.  If and to the
extent such Revolving Lender shall not have made any required pro rata portion
available to the Agent, such Revolving Lender and the Company, unconditionally
and irrevocably, severally agree to pay to the Agent forthwith on demand such
amount together with interest thereon, for each day from the date such amount
was paid by the Agent until such
amount is so made available to the Agent for its own account at a per annum
rate equal to the interest rate applicable during such period to the related
Revolving Credit Loan disbursed under Section 3.3 in respect of the
reimbursement obligation of the Company. 
If such Revolving Lender shall pay such amount to the Agent together
with such interest, if any, accrued, such amount so paid shall constitute a
Revolving Credit Loan by such Revolving Lender as part of the Revolving Credit
Borrowing disbursed in respect of the reimbursement obligation of the Company
under Section 3.3 for purposes of this Agreement.  The failure of any Revolving Lender to make its pro rata portion
of any such amount paid by the Agent available to the Agent shall not relieve
any other Revolving Lender of its obligation to make available its pro rata
portion of such amount, but no Revolving Lender shall be responsible for
failure of any other Revolving Lender to make such pro rata portion available
to the Agent.  Notwithstanding anything
herein to the contrary, it is acknowledged and agreed that Letters of Credit
hereunder may be or have been issued for the account of any of the Subsidiaries
of the Company, provided that for all purposes of this Agreement both the
Company and such Subsidiary shall be deemed the account party thereon and shall
be jointly and severally liable for all obligations in connection therewith and
the Company shall have obtained an agreement from such Subsidiary that such
Subsidiary shall be bound by all of the terms and provisions of this Agreement
with respect to Letters of Credit, such
agreement to be in form of substance satisfactory to the Agent.

 

(d)           All Loans shall, or at
the option of each Term Loan Lender with respect to its portion of the Term
Loan, may, be evidenced by the Notes, and all such Loans shall be due and
payable and bear interest as provided in Article III.  Each Lender and the Agent is hereby authorized by the Company to
record on the schedule attached to the Notes, or in its books and records, the
date, and amount and type of each Loan and the duration of the related LIBOR
Interest Period (if applicable), the amount of each payment or prepayment of
principal thereon (if applicable), and the other information provided for on
such schedule, which schedule or books and records, as the case may be, shall
constitute prima facie evidence of the information so recorded, provided,
however, that failure of any Lender or the Agent to record, or any error in
recording, any such information shall not relieve the Company of its obligation
to repay the outstanding principal amount of the Loans, all accrued interest
thereon and other amounts payable with respect thereto in accordance with the
terms of the Notes and this Agreement. 
Subject to the terms and conditions of this Agreement, the Company may
borrow Revolving Credit Advances and under this Section 2.4 and under Section
3.3, prepay Revolving Credit Advances and the Term Loan pursuant to Section 3.1
and reborrow Revolving Credit Advances under this Section 2.4.  The Term Loan shall not be reborrowed in
whole or in part once repaid.

 

2.5           Conditions
for Term Loan and First Disbursement. 
The obligation of the Term Loan Lenders to incur the Term Loan, and the
obligation of the Revolving Lenders to make the first Revolving Credit Advance
after the Closing Date are subject to receipt by each Lender and

 

29

 

the Agent of the
following documents and completion of the following matters, in form and
substance satisfactory to each Lender and the Agent:

 

(a)           Charter Documents.  Certificates of recent date of the
appropriate authority or official of the Company’s and each Guarantor’s
respective jurisdiction of organization listing all charter documents of the
Company or each Guarantor, respectively, on file in that office and certifying
as to the good standing and existence of the Company and each Guarantor,
respectively, together with copies of such charter documents of the Company or
each Guarantor certified as of a recent date by such authority or official and
certified as true and correct as of the Effective Date by a duly authorized
officer of the Company or such Guarantor, respectively;

 

(b)           Governing Documents
and Corporate Authorizations. 
Copies of the by-laws of the Company and by-laws, partnership agreement
or operating agreement of each Guarantor together with all authorizing
resolutions and evidence of other action taken by the Company and each
Guarantor to authorize the execution, delivery and performance by the Company
and each Guarantor of this Agreement, the Notes and the Security Documents to
which the Company or such Guarantor, respectively, is a party and the
consummation by the Company or such Guarantor, respectively, of the
transactions contemplated hereby or thereby, certified as true and correct as
of the Effective Date by a duly authorized officer of the Company or each
Guarantor, respectively;

 

(c)           Incumbency
Certificate.  Certificates of
incumbency of the Company and each Guarantor containing, and attesting to the
genuineness of, the signatures of those officers, partners, managers or
members, as the case may be, authorized to act on behalf of the Company or such
Guarantor in connection with this Agreement, the Notes and the Security
Documents to which the Company and such Guarantor is a party and the
consummation by the Company or such Guarantor of the transactions contemplated
hereby or thereby, certified as true and correct as of the Effective Date by a
duly authorized officer of the Company and such Guarantor;

 

(d)           This Agreement.  This Agreement duly executed on behalf of
each party hereto;

 

(e)           Notes.  The Notes duly executed on behalf of the
Company for each Lender (or with respect to the Term Loan, any Term Notes
requested by any Term Loan Lender to be executed on behalf of the Company for
such Term Loan Lender);

 

(f)            Casualty and Other
Insurance.  Evidence that the
casualty and other insurance and any accompanying certificates of insurance and
loss payable endorsements required pursuant to subsection 5.1(c), hereof or the
Security Documents are in full force and effect;

 

(g)           Legal Opinions.  The favorable written opinion of counsel for
the Company and each Guarantor, substantially in the form of Exhibit H attached
hereto;

 

30

 

(h)           Consents, Approvals,
Etc.  Copies of all governmental and
nongovernmental consents, approvals, authorizations, declarations,
registrations or filings, if any, required on the part of the Company or any
Guarantor in connection with the execution, delivery and performance of the
Loan Documents or the transactions contemplated hereby or as a condition to the
legality, validity or enforceability of, the Loan Documents, certified as true
and correct and in full force and effect as of the Effective Date by a duly
authorized officer of the Company, or if none are required, a certificate of
such officer to that effect;

 

(i)            Intentionally
Omitted.

 

(j)            Intentionally
Omitted.

 

(k)           Intentionally
Omitted.

 

(l)            Intentionally
Omitted.

 

(m)          Parent Indebtedness.
The Company shall cause the Parent to certify to the Agent on the Closing Date
as follows: (i) Schedule 2.5(m) lists all the Indebtedness of the Parent
(excluding Indebtedness of the Company), with balances as of June 30, 2003,
(ii) the Company has no liability or obligation for payment or performance of
such Indebtedness, and (iii) the Parent or the Company shall give the Agent
prior written notice of (A) any modification to the terms of such Indebtedness
which may make clause (ii) hereof incorrect, and (B) the incurrence of any
additional Indebtedness (along with a new certification in accordance with the
terms of this subsection 2.5(m) with respect to such new Indebtedness);

 

(n)           Payments.  Evidence satisfactory to the Agent that all
transfers of funds, payments of fees pursuant to Section 2.3 and other fees and
payments described on Schedule 4.7 are being accomplished on the Closing
Date, or at such other time as noted on Schedule 4.7;

 

(o)           Due Diligence.  The Agent shall have received and be
satisfied with all litigation searches, Uniform Commercial Code lien searches,
a review of all material contracts and Contingent Liabilities, and all other
due diligence and investigation required by the Agent, if any;

 

(p)           Certificates.  The Agent shall have received, in form and
substance satisfactory to the Agent, (i) the Pro Forma Financial Statements,
and (ii) a solvency certificate as of the Closing Date in form and substance
satisfactory to the Agent, both certified by the chief financial officer of the
Company;

 

(q)           Reaffirmation
Agreements. Reaffirmation of the Guaranty of each Existing Guarantor; and

 

(r)            Other Conditions.  Such other documents and completion of such
other matters as the Agent may reasonably request, including without limitation
copies of all final projections and financial statements.

 

31

 

2.6           Further Conditions for Disbursement.  The obligation of the Lenders to make the
Term Loan or any Revolving Credit Advance (including the first Revolving Credit
Advance occurring after the Closing Date), or any continuation or conversion
under Section 2.7, is further subject to the satisfaction of the following
conditions precedent:

 

(a)           The representations and
warranties contained in Article IV hereof and in the Security Documents shall
be true and correct on and as of the date such Term Loan or Revolving Credit
Advance, or continuation or conversion, is made (before and after such Term
Loan or Revolving Credit Advance, or continuation or conversion, is made) as if
such representations and warranties were made on and as of such date;

 

(b)           No Event of Default or
Unmatured Event shall exist or shall have occurred and be continuing on the
date such Term Loan or Revolving Credit Advance, or continuation or conversion,
is made and the making of such Term Loan or Revolving Credit Advance, or continuation
or conversion, shall not cause an Event of Default or Unmatured Event; and

 

(c)           In addition to all
other applicable conditions, in the case of any Letter of Credit Advance, the
Company shall have delivered to the Agent issuing the related Letter of Credit
an application for such Letter of Credit and other related documentation
requested by and acceptable to the Agent appropriately completed and duly
executed on behalf of the Company.

 

2.7           Subsequent Elections as to Borrowings.  The Company may elect (a) to continue a
LIBOR Borrowing, or a portion thereof, as a LIBOR Borrowing, or (b) may elect
to convert a LIBOR Borrowing of one type, or a portion thereof, to an Adjusted
Corporate Base Rate Borrowing, or (c) elect to convert an Adjusted Corporate Base
Rate Borrowing, or a portion thereof, to a LIBOR Borrowing, in each case by
giving notice thereof to the Agent in substantially the form of Exhibit I
hereto not later than 11:00 a.m. Chicago time three LIBOR Business Days prior
to the date any such continuation of or conversion to a LIBOR Borrowing is to
be effective and not later than noon Chicago time on the Business Day such
conversion is to be effective in all other cases, provided that an outstanding
LIBOR Borrowing may only be continued or converted on the last day of the then
current LIBOR Interest Period with respect to such Borrowing, and provided,
further, if a continuation of a Borrowing as, or a conversion of a Borrowing
to, a LIBOR Borrowing is requested, such notice shall also specify the LIBOR
Interest Period to be applicable thereto upon such continuation or
conversion.  The Agent, reasonably
promptly on the Business Day such notice is given, shall provide notice of such
election to the Revolving Lenders.  If
the Company shall not timely deliver such a notice with respect to any
outstanding LIBOR Borrowing, the Company shall be deemed to have elected to
convert such LIBOR Borrowing to an Adjusted Corporate Base Rate Borrowing on
the last day of the then current LIBOR Interest Period with respect to such
Borrowing.

 

2.8           Limitation of Requests and Elections.  Notwithstanding any other provision of this
Agreement to the contrary, if, upon receiving a request for a LIBOR Borrowing
pursuant to Section 2.4, or a request for a continuation of a LIBOR Borrowing,
or a request for a conversion of an Adjusted Corporate Base Rate Borrowing to a
LIBOR Borrowing pursuant to Section 2.7, (a) in the case of any LIBOR
Borrowing, deposits in Dollars for periods comparable to the

 

32

 

LIBOR Interest
Period elected are not available to any Lender in the relevant interbank
market, or (b) the applicable interest rate will not adequately and fairly
reflect the cost to any Lender of making, funding or maintaining the related
LIBOR Borrowing or (c) by reason of national or international financial,
political or economic conditions or by reason of any applicable law, treaty,
rule or regulation (whether domestic or foreign) now or hereafter in effect, or
the interpretation or administration thereof by any governmental authority
charged with the interpretation or administration thereof, or compliance by any
Lender with any guideline, request or directive of such authority (whether or
not having the force of law), including without limitation exchange controls,
it is impracticable, unlawful or impossible for any Lender (i) to make or fund
the relevant LIBOR Borrowing or (ii) to continue such LIBOR Borrowing or (iii)
to convert a Borrowing to such a LIBOR Borrowing, then the Company shall not be
entitled, so long as such circumstances continue, to request a LIBOR Borrowing
pursuant to Section 2.4 or a continuation of or conversion to a LIBOR Borrowing
pursuant to Section 2.7.  In the event
that such circumstances no longer exist, the Lenders shall again, subject to
the terms and conditions hereof, provide LIBOR Borrowings pursuant to Section
2.4, and requests for continuations of and conversions to LIBOR Borrowings of
the affected type pursuant to Section 2.7.

 

2.9           Minimum
Amounts; Limitation on Number of Borrowings.  Except for (a) Revolving Credit Advances and
conversions thereof which exhaust the entire remaining amount of the Revolving
Commitments, (b) prepayment of the Term Loan permitted by this Agreement, and
(c) payments required pursuant to Section 3.8, each Borrowing and each
continuation or conversion pursuant to Section 2.7 and each prepayment thereof
shall be in a minimum amount of, in the case of LIBOR Borrowings, $2,000,000
and in integral multiples of $500,000, and in the case of Adjusted Corporate
Base Rate Borrowings, $250,000 and in integral multiples of $50,000.  No more than five LIBOR Interest Periods
shall be permitted to exist at any one time with respect to all Revolving
Credit Advances outstanding hereunder from time to time.

 

2.10         Security
and Collateral.  To
secure the payment when due of the Loans and all other obligations of the
Company under this Agreement to the Lenders and the Agent, the Company has
executed and delivered, or caused to be executed and delivered, to the Lenders
and the Agent, Security Documents granting the following:

 

(a)           Security interests in
all present and future accounts, inventory, equipment, fixtures and all other
personal property of the Company and each Guarantor;

 

(b)           Mortgage liens on all
real property and fixtures, if any, owned by the Company and each Guarantor;

 

(c)           Pledges of all Capital
Stock owned by the Company or any Guarantor (other than Parent), provided that
(i) the amount of Capital Stock of any Foreign Subsidiary pledged to the Agent
shall not exceed 65% of the aggregate Capital Stock of such Foreign Subsidiary
and (ii) the Company shall not be required to pledge the Capital Stock of
Atrium Parking, Inc., a Delaware corporation, and (iii) the Company shall not
be required to pledge the Capital Stock of any future Domestic Subsidiary so
long as those entities do not have any assets

 

33

 

or operations
valued in excess of $100,000, all subject to certain other exclusions and the
further terms and conditions of the Security Documents;

 

(d)           Guaranties of all
Guarantors;

 

(e)           Pledges of all Capital
Stock (other than the Preferred Stock) owned by the Parent; and

 

(f)            All other security and
collateral described in the Security Documents.

 

Notwithstanding the foregoing, it is
acknowledged and agreed that the Company and the Guarantors shall not be
required to grant a lien or security interest on any assets to the extent such
assets are specifically excluded from the collateral pursuant to the terms of
the Security Agreements.

 

ARTICLE III

 

PAYMENTS AND PREPAYMENTS OF ADVANCES

 

3.1           Principal Payments.

 

(a)           Unless earlier payment
is permitted or required under this Agreement, the Company shall pay to the
Agent, for the benefit of the Lenders, (i) on the Revolving Credit Termination
Date, the entire outstanding principal amount of the Revolving Credit Advances,
and (ii) on the Term Loan Termination Date, the entire outstanding principal
amount of the Term Loan.  If the
Revolving Credit Advances at any time exceed the amount allowed pursuant to
subsection 2.1(c), the Company shall prepay the Revolving Credit Advances by an
amount equal to or, at its option, greater than such excess.

 

(b)           The Company may at any
time and from time to time prepay all or a portion of the Revolving Credit
Loans, without premium or penalty, provided that (i) any such prepayment
made in connection with a reduction of the Revolving Commitments to zero or a
termination of the Revolving Commitments in either case pursuant to Section
2.2(a) on or prior to the first anniversary of the Effective Date shall be
accompanied by a prepayment premium equal to 2% of the highest Revolving
Commitment amount in effect within the six (6) months preceding giving effect
to such reduction or termination, and (ii) any such prepayment made in
connection with a reduction of the Revolving Commitments to zero or a
termination of the Revolving Commitments pursuant to Section 2.2(a) after the
first anniversary of the Effective Date but on or prior to the second
anniversary of the Effective Date shall be accompanied by a prepayment premium
equal to 1% of the highest Revolving Commitment amount in effect within the six
(6) months preceding giving effect to such reduction or termination.  Any prepayment of the Revolving Credit Loans
shall be made to the Agent for the benefit of and distribution to the Revolving
Lenders.  The Company shall not prepay
the Term Loan at any time prior to the repayment in full of the Revolving
Credit Advances and the termination of the Revolving Commitments, unless the
Agent shall otherwise agree.  If any
prepayment of the Term Loan is permitted by the Bank Subordination Agreement, a
prepayment fee shall be charged to the

 

34

 

Company and shall
be payable to the Term Loan Lenders, pro rata, in the amount of (i) 2% of the
amount being prepaid if prepayment occurs at any time from, and including, the
Closing Date to, but excluding, the first anniversary of the Closing Date, and
(ii) 1% of the amount being prepaid if prepayment occurs at any time from, and
including, the first anniversary of the Closing Date, to but excluding, the
second anniversary of the Closing Date. 
The foregoing prepayment fees, with respect to both the Revolving Credit
Loans and the Term Loans, shall apply in the manner, in the amounts, and at the
times provided (subject to the terms of the Bank Subordination Agreement with
respect to when payments may be made to the Term Loan Lenders), at any time either
or both of such Loans is or are prepaid by the Company, whether such prepayment
by the Company is voluntary, or pursuant to the occurrence of an Event of
Default which results in the Agent or the applicable Lenders requiring the
immediate termination and repayment of either or both of such Loans, or for any
other reason that either or both of such Loans is or are prepaid.

 

3.2           Interest Payments.  The Company shall pay interest to the Agent, on behalf of the
Lenders, on the unpaid principal amount of each Loan, for the period commencing
on the Closing Date (or if later, the date such Loan is made) until such Loan
is paid in full, on each Interest Payment Date and at maturity (whether at
stated maturity, by acceleration or otherwise), and thereafter on demand, at
the following rates per annum:

 

(a)           During such periods
that any Revolving Credit Loan is an Adjusted Corporate Base Rate Loan, the
Adjusted Corporate Base Rate.

 

(b)           During such periods
that any Revolving Credit Loan is a LIBOR Loan, the LIBOR applicable to such
Revolving Credit Loan for each related LIBOR Interest Period, plus the
Applicable Margin.

 

(c)           With respect to the
Term Loan, interest shall accrue and be payable at the Corporate Base Rate plus
6 3/4% per annum (the “Term Loan Interest Rate”), payable in arrears on each
Interest Payment Date; provided, that, the Company may, upon written notice to
the Agent from time to time, elect to defer
the cash payment of up to 3% per annum, as of each applicable Interest Payment
Date, of the Term Loan Interest Rate (such amount, the “Deferred Interest
Amount”).  To the extent the Company
elects to defer the payment of interest pursuant to the immediately preceding
sentence, the Deferred Interest Amounts shall accrue on a monthly basis and
remain payable, and interest on all Deferred Interest Amounts shall accrue
monthly and be payable, in the same manner as the outstanding principal amount
of the Term Loan (including without limitation, with respect to the right of
the Company to defer a portion of the interest accruing on such Deferred
Interest Amount as provided for in this clause (c)).

 

3.3           Letter
of Credit Reimbursement Payments.

 

(a)           (i)            The Company agrees to pay to the Agent, not
later than 1:00 p.m. Chicago time on the date on which the Agent shall honor a
draft or other demand for payment presented or made under any Letter of Credit,
an amount equal to the amount paid by the Agent in respect of such draft or
other demand under any such Letter of Credit, and all reasonable expenses paid
or incurred by the Agent relative thereto (the “Reimbursement Amount”).  The

 

35

 

Agent shall, on
the date of each demand for payment under any Letter of Credit issued by the
Agent, give the Company notice thereof and of the amount of the Company’s reimbursement obligation and
liability for expenses relative thereto; provided that the failure of the Agent
to give any such notice shall not affect the reimbursement and other
obligations of the Company under this Section 3.3.  Unless the Company shall have made such payment to the Agent, on
such day, upon each such payment by the Agent, the Company shall be deemed to
have elected to satisfy its reimbursement obligation by an Adjusted Corporate
Base Rate Borrowing in an amount equal to the amount so paid by the Agent in
respect of such draft or other demand under such Letter of Credit, and the
Agent shall be deemed to have disbursed to the Company, for the account of the
Revolving Lenders, the Adjusted Corporate Base Rate Loans comprising such
Adjusted Corporate Base Rate Borrowing, and each Lender holding a Revolving
Commitment shall make its share of each such Adjusted Corporate Base Rate
Borrowing available to the Agent for its own account in accordance with this
Agreement.  Such Adjusted Corporate Base
Rate Loans shall be deemed disbursed notwithstanding any failure to satisfy any
conditions for disbursement of any Revolving Credit Loan and, to the extent of
the Adjusted Corporate Base Rate Loans so disbursed, the reimbursement
obligation of the Company with respect to such Letter of Credit under this
subsection (a)(i) shall be deemed satisfied.

 

(ii)           If,
for any reason (including without limitation as a result of the occurrence of
an Event of Default with respect to the Company pursuant to subsection 6.1(h)),
Adjusted Corporate Base Rate Loans may not be made by the Lenders as described
in subsection (a)(i) of this Section 3.3, (A) the Company agrees that each
Reimbursement Amount not paid pursuant to the first sentence of subsection
(a)(i) of this Section 3.3 shall bear interest, payable on demand by the Agent
at the interest rate then applicable to Adjusted Corporate Base Rate Loans, and
(B) effective on the date each such Adjusted Corporate Base Rate Loan would
otherwise have been made with respect to any Letter of Credit each Lender
holding a Revolving Commitment severally agrees that it shall unconditionally
and irrevocably, without regard to the occurrence of any Event of Default or
Unmatured Event to the extent of such Lender’s pro rata share (based on the
percentage of the aggregate Revolving Commitments of all Revolving Lenders then
constituted by such Lender’s Revolving Commitment) purchase a participating
interest in each Reimbursement Amount. 
Each such Lender will immediately transfer to the Agent, in same day
funds, the amount of its participation for its own account.  Each
such Lender shall share on a pro rata basis in any interest which accrues
thereon and in all repayments thereof. 
If and to the extent that any such Lender shall not have so made the
amount of such participating interest available to the Agent, such Lender
agrees to pay to the Agent for its own account forthwith on demand such amount
together with interest thereon, for each day from the date of demand by the
Agent until the date such amount is paid to the Agent, at the Federal Funds
Rate for the first five days after such demand and at the Overdue Rate
thereafter.

 

(iii)          Each Lender holding a Revolving Commitment
shall be obligated, absolutely and unconditionally to make Adjusted Corporate
Base Rate Loans pursuant to subsection 3.3(a)(i), and to purchase and fund
participation interests in Letters of Credit pursuant to subsection 2.4(c) and
3.3(a)(ii), and such obligation shall not be affected by

 

36

 

any
circumstance whatsoever, including, without limitation, (i) any set off,
counterclaim, recoupment, defense or other right which such Lender or the
Company may have against the Agent, the Company or anyone else for any reason
whatsoever, (ii) the occurrence of any Event of Default or Unmatured Event,
(iii) any adverse change in the condition (financial or otherwise) of the
Company or any of its Subsidiaries, (iv) any breach of this Agreement by the Company,
any of its Subsidiaries, the Agent or any other Lender, or (v) any other
circumstance, happening or event whatsoever, whether or not similar to any of
the foregoing, including without limitation any termination or other limitation
on the Revolving Commitments or any failure to satisfy any conditions precedent
to any Revolving Credit Advance contained herein or any other provision of this
Agreement.

 

(b)           The reimbursement
obligation of the Company under this Section 3.3 shall be absolute,
unconditional and irrevocable and shall remain in full force and effect until
all reimbursement obligations of the Company to the Revolving Lenders hereunder
shall have been satisfied, and such obligations of the Company shall not be
affected, modified or impaired upon the happening of any event, including
without limitation, any of the following, whether or not with notice to, or the
consent of, the Company:

 

(i)            Any
lack of validity or enforceability of any Letter of Credit or any documentation
relating to any Letter of Credit or
to any transaction related in any way to any Letter of Credit (the “Letter of
Credit Documents”).

 

(ii)           Any
amendment, modification, waiver, consent, or any substitution, exchange or
release of or failure to perfect any interest in collateral or security, with
respect to any of the Letter of Credit Documents;

 

(iii)          The existence of any claim, setoff, defense
or other right which the Company may have at any time against any beneficiary
or any transferee of any Letter of Credit (or any Persons or entities for whom
any such beneficiary or any such transferee may be acting), the Agent or any
Lender or any other Person or entity, whether in connection with any of the
Letter of Credit Documents, the transactions contemplated herein or therein or
any unrelated transactions;

 

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

 

(v)           Payment
by the Agent to the beneficiary under any Letter of Credit against presentation
of documents which do not comply with the terms of the Letter of Credit,
including failure of any documents to bear any reference or adequate reference
to such Letter of Credit;

 

(vi)          Any
failure, omission, delay or lack on the part of the Agent or any Lender or any
party to any of the Letter of Credit Documents to enforce, assert or exercise
any right, power or remedy conferred upon the Agent, any Lender or any such

 

37

 

party
under this Agreement or any of the Letter of Credit Documents, or any other
acts or omissions on the part of the Agent, any Lender or any such party; or

 

(vii)         Any other event or circumstance that would, in
the absence of this clause, result in the release or discharge by operation of
law or otherwise of the Company from the performance or observance of any
obligation, covenant or agreement contained in this Section 3.3.

 

No setoff, counterclaim, reduction or
diminution of any obligation or any defense of any kind or nature which the
Company has or may have against the beneficiary of any Letter of Credit shall
be available hereunder to the Company against the Agent or any Lender.  Nothing in this Section 3.3 shall limit the
liability, if any, of the Revolving Lenders to the Company pursuant to
subsection 3.3(c).

 

(c)           The Company hereby
indemnifies and agrees to hold harmless the Lenders, the Agent and their
respective officers, directors, employees and agents, harmless from and against
any and all claims, damages, losses, liabilities, costs or expenses of any kind
or nature whatsoever which the Lenders, the Agent or any such Person may incur
or which may be claimed against any of them by reason of or in connection with
any Letter of Credit, and neither any Lender, the Agent nor any of their
respective officers, directors, employees or agents shall be liable or
responsible for:  (i) the use which may
be made of any Letter of Credit or for any acts or omissions of any beneficiary
in connection therewith; (ii) the validity, sufficiency or genuineness of
documents or of any endorsement thereon, even if such documents should in fact
prove to be in any or all respects invalid, insufficient, fraudulent or forged;
(iii) payment by the Agent to the beneficiary under any Letter of Credit
against presentation of documents which do not comply with the terms of such
Letter of Credit, including
failure of any documents to bear any reference or adequate reference to such Letter
of Credit; (iv) 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; or
(v) any other event or circumstance whatsoever arising in connection with any
Letter of Credit; provided, however, that the Company shall not be required to
indemnify the Lenders, the Agent and such other Persons, and the Agent and the
Revolving Lenders shall be severally liable to the Company to the extent, but
only to the extent, of any direct, as opposed to consequential or incidental,
damages suffered by the Company which were caused by (A) the Agent’s wrongful
dishonor of any Letter of Credit after the presentation to it by the
beneficiary thereunder of a draft or other demand for payment and other
documentation strictly complying with the terms and conditions of such Letter
of Credit, or (B) the payment by the Agent to the beneficiary under any Letter
of Credit against presentation
of documents which do not comply with the terms of the Letter of Credit to the
extent, but only to the extent, that such payment constitutes gross negligence
or willful misconduct of the Agent, provided that none of the Agent, any Lender
holding a Revolving Commitment or any such Person shall have the right to be
indemnified hereunder for its own gross negligence or willful misconduct as
determined by a court of competent jurisdiction.  It is understood that in making any payment under a Letter of Credit
the Agent will rely on documents presented to it under such Letter of Credit as to any and all matters set forth
therein without further investigation and regardless of any notice or
information to the contrary, and such reliance and payment against documents

 

38

 

presented under a
Letter of Credit substantially complying with the terms thereof shall not be
deemed gross negligence or willful misconduct of the Agent in connection with
such payment.  It is further
acknowledged and agreed that the Company may have rights against the
beneficiary or others in connection with any Letter of Credit with respect to
which the Revolving Lenders or
the Agent are alleged to be liable and it shall be a precondition of the
assertion of any liability of the Revolving Lenders or the Agent under this
Section that the Company shall first have exhausted all remedies in respect of
the alleged loss against such beneficiary and any other parties obligated or
liable in connection with such Letter of Credit and any related transactions.

 

3.4           Payment
Method.

 

(a)           All payments to be made
by the Company hereunder will be made in Dollars and in immediately available
funds to the Agent (subject to any rights the Term Loan Lender may have to
receive payments directly from the Company, pursuant to the terms of the Bank
Subordination Agreement) for the account of the Lenders at its address set
forth on the signature pages not later than 1:00 p.m. Chicago time on the date
on which such payment shall become due. 
Payments received after 1:00 p.m. Chicago time shall be deemed to be
payments made prior to 1:00 p.m. Chicago time on the next succeeding Business
Day.  The Company hereby authorizes the
Agent to charge its account with the Agent in order to cause timely payment of
principal, interest and fees due under Section 2.3 to be made (subject to
sufficient funds being available in such account for that purpose).

 

(b)           At the time of making
each such payment, the Company shall, subject to the other terms and conditions
of this Agreement, specify to the Agent that Revolving Credit Advance, portion
of the Term Loan, accrued and payable interest, or other obligation of the
Company hereunder to which such payment is to be applied.  In the event that the Company fails to so
specify the relevant obligation, the Agent may apply such payments to any
principal, interest, fees or expenses that are then due and payable as it may
determine, or if the Loans shall have become due and payable, the Agent shall
apply such payments in accordance with Section 6.3 hereof.

 

(c)           On the day such
payments are deemed received, the Agent shall remit to the Lenders their pro
rata shares of such payments in immediately available funds, (i) in the case of
payments of principal and interest on any Borrowing, determined with respect to
each such Lender by the ratio which the outstanding principal balance of its
Revolving Credit Loan included in such Borrowing bears to the outstanding
principal balance of the Revolving Credit Loans of all the Lenders included in such
Borrowing, (ii) in the case of payments of accrued and payable interest as
required herein on the Term Loan, determined with respect to each such Lender
by the ratio of such Lender’s share of the Term Loan to the then-outstanding
aggregate principal amount of the Term Loan, and (iii) in the case of fees paid
pursuant to Section 2.3 and other amounts payable hereunder (other than the
fees payable to the Agent for its own account pursuant to Section 2.3 and
amounts payable to any Lender under Section 3.7) determined with respect to
each such Lender by the ratio which the Commitment of such Lender bears to the
Commitments of all the Lenders.

 

39

 

3.5           No
Setoff or Deduction.  All
payments of principal and interest on the Loans and other amounts payable by
the Company hereunder shall be made by the Company without setoff or
counterclaim, and free and clear of, and without deduction or withholding for,
or on account of, any present or future taxes, levies, imposts, duties, fees,
assessments, or other charges of whatever nature, imposed by any governmental
authority, or by any department, agency or other political subdivision or
taxing authority.

 

3.6           Payment on Non-Business Day; Payment
Computations.  Except as otherwise
provided in this Agreement to the contrary, whenever any installment of
principal of, or interest on, any Loan or any other amount due hereunder
becomes due and payable on a day which is not a Business Day, the maturity
thereof shall be extended to the next succeeding Business Day and, in the case
of any installment of principal, interest shall be payable thereon at the rate
per annum determined in accordance with this Agreement during such
extension.  Computations of interest and
other amounts due under this Agreement shall be made on the basis of a year of
360 days for the actual number of days elapsed, including the first day but
excluding the last day of the relevant period.

 

3.7           Additional
Costs.

 

(a)           In the event that on or
after the date hereof, the adoption of or any change in any applicable law,
treaty, rule or regulation (whether domestic or foreign) now or hereafter in
effect and whether or not presently applicable to any Lender or the Agent, or
any interpretation or administration thereof by any governmental authority
charged with the interpretation or administration thereof, or compliance by any
Lender or the Agent with any guideline, request or directive of any such
authority (whether or not having the force of law), shall (i) directly affect
the basis of taxation of payments to any Lender or the Agent of any amounts
payable by the Company under this Agreement (other than taxes imposed on the
overall net income of any Lender or the Agent, by the jurisdiction, or by, any
political subdivision or taxing authority of any such jurisdiction, in which
any Lender or the Agent, as the case may be, has its principal office), or (ii)
shall impose, modify or deem applicable any reserve, special deposit or similar
requirement against assets of, deposits with or for the account of, or credit
extended by any Lender or the Agent, or (iii) shall impose any other condition
with respect to this Agreement, the Commitments, the Notes, the Loans or any
Letters of Credit, and the result of any of the foregoing (i.e., (i), (ii) or
(iii)) is to increase the cost to any Lender or the Agent, as the case may be,
of making, funding or maintaining any LIBOR Loan or any Letter of Credit or to
reduce the amount of any sum receivable by any Lender or the Agent, as the case
may be, thereon, then the Company shall pay to such Lender or the Agent, as the
case may be, from time to time, upon request by such Lender (with a copy of
such request to be provided to the Agent) or the Agent, additional amounts
sufficient to compensate such Lender or the Agent, as the case may be, for such
increased cost or reduced sum receivable to the extent, in the case of any
LIBOR Loan, such Lender or the Agent is not compensated therefor in the
computation of the interest rate applicable to such LIBOR Loan.  A statement as to the amount of such
increased cost or reduced sum receivable, prepared in good faith and in
reasonable detail by such Lender or the Agent, as the case may be, and
submitted by such Lender or the Agent, as the case may be, to the Company,
shall be conclusive and binding for all purposes absent manifest error in
computation.

 

40

 

(b)           In the event that on or
after the date hereof, the adoption of or any change in any applicable law, treaty,
rule or regulation (whether domestic or foreign) now or hereafter in effect and
whether or not presently applicable to any Lender or the Agent, or any
interpretation or administration thereof by any governmental authority charged
with the interpretation or administration thereof, or compliance by any Lender
or the Agent with any guideline, request or directive of any such authority
(whether or not having the force of law), including any risk-based capital
guidelines, affects or would affect the amount of capital required or expected
to be maintained by such Lender or the Agent (or any corporation controlling
such Lender or the Agent) and such Lender or the Agent, as the case may be,
determines that the amount of such capital is increased by or based upon the
existence of such Lender’s or the Agent’s obligations hereunder and such
increase has the effect of reducing the rate of return on such Lender’s or the
Agent’s (or such controlling corporation’s) capital as a consequence of such
obligations hereunder to a level below that which such Lender or the Agent (or
such controlling corporation) could have achieved but for such circumstances
(taking into consideration its policies with respect to capital adequacy) by an
amount deemed by such Lender or the Agent to be material, then the Company
shall pay to such Lender or the Agent, as the case may be, from time to time,
upon request by such Lender (with a copy of such request to be provided to the
Agent) or the Agent, additional amounts sufficient to compensate such Lender or
the Agent (or such controlling corporation) for any increase in the amount of
capital and reduced rate of return which such Lender or the Agent reasonably
determines to be allocable to the existence of such Lender’s or the Agent’s
obligations hereunder.  A statement as
to the amount of such compensation, prepared in good faith and in reasonable
detail by such Lender or the Agent, as the case may be, and submitted by such
Lender or the Agent to the Company, shall be conclusive and binding for all
purposes absent manifest error in computation.

 

(c)           Each Lender will
promptly notify the Company and the Agent of any event of which it has
knowledge, occurring after the date hereof, which will entitle such Lender to
compensation pursuant to this Section and will designate a different Applicable
Lending Office if such designation will avoid the need for, or reduce the
amount of, such compensation and will not in the judgment of such Lender be
otherwise disadvantageous to such Lender or contrary to its policies.

 

3.8           Illegality
and Impossibility.  In
the event that on or after the date hereof, the adoption of or any change in
any applicable law, treaty, rule or regulation (whether domestic or foreign) or
any change in any interpretation or administration of any applicable law,
treaty, rule or regulation (whether domestic or foreign) now or hereafter in
effect and whether or not presently applicable to any Lender or the Agent, by
any governmental authority charged with the interpretation or administration
thereof, or compliance by any Lender with any guideline, request or directive
or such authority (whether or not having the force of law), including without
limitation exchange controls, shall make it unlawful or impossible for any
Lender to maintain any LIBOR Loan under this Agreement, such Lender’s
outstanding LIBOR Loans, if any, shall be converted automatically to Adjusted
Corporate Base Loans on the respective last days of the then current LIBOR
Interest Periods with respect to such LIBOR Loans or within such earlier period
as required by law.  If any such
conversion of a LIBOR Loan occurs on a day which is not the last day of the
then current LIBOR Interest Period with respect thereto, the Company shall

 

41

 

pay to such Lender
such amounts, if any, as may be required pursuant to Section 3.9 as if such
conversion were a prepayment.

 

3.9           Indemnification.  If the Company makes any payment of principal with respect to any
LIBOR Loan on any other date than the last day of a LIBOR Interest Period
applicable thereto (whether pursuant to Section 3.8, Section 6.2 or otherwise),
or if the Company fails to borrow any LIBOR Loan after notice has been given to
the Lenders in accordance with Section 2.4, or if the Company fails to make any
payment of principal or interest in respect of a LIBOR Loan when due, the
Company shall reimburse each Lender on demand for any resulting loss or expense
incurred by each such Lender, including, without limitation any loss incurred in
obtaining, liquidating or employing deposits from third parties, whether or not
such Lender shall have funded or committed to fund such Revolving Credit
Loan.  A statement as to the amount of
such loss or expense, prepared in good faith and in reasonable detail by such
Lender and submitted by such Lender to the Company, shall be conclusive and
binding for all purposes absent manifest error in computation.  Calculation of all amounts payable to such
Lender under this Section 3.9 shall be made as though such Lender shall have
actually funded or committed to fund the relevant LIBOR Loan through the
purchase of an underlying deposit in an amount equal to the amount of such
Revolving Credit Loan and having a maturity comparable to the related LIBOR
Interest Period and through the transfer of such deposit from an offshore
office of such Lender to a domestic office of such Lender in the United States
of America; provided, however, that such Lender may fund any LIBOR Loan in any
manner it sees fit and the foregoing assumption shall be utilized only for the
purpose of calculation of amounts payable under this Section 3.9.

 

3.10         Substitution of Lender.  If (i) the obligation of any Lender to make
or maintain LIBOR Loans has been suspended pursuant to Section 3.8 when not all
Lender’s obligations have been suspended, (ii) any Lender has demanded
compensation under Section 3.7 or (iii) any Lender is a Defaulting Lender, the
Company shall have the right, if no Unmatured Event or Event of Default then
exists, to replace such Lender (a “Replaced Lender”) with one or more other
lenders (collectively, the “Replacement Lender”) acceptable to the Agent,
provided that (x) at the time of any replacement pursuant to this Section 3.10,
the Replacement Lender shall enter into one or more Assignment and Acceptances,
pursuant to which the Replacement Lender shall acquire the Commitments, the
outstanding Revolving Credit Advances, the Replaced Lender’s pro rata portion
of the outstanding Term Loan and other obligations of the Replaced Lender and,
in connection therewith, shall pay to the Replaced Lender in respect thereof an
amount equal to the sum of (A) the amount of principal of, and all accrued
interest on, all outstanding Loans of the Replaced Lender, (B) the amount of
all accrued, but theretofore unpaid, fees owing to the Replaced Lender under
Section 2.3 and (C) the amount which would be payable by the Company to the
Replaced Lender pursuant to Section 3.9 if the Company prepaid at the time of
such replacement all of the Loans of such Replaced Lender outstanding at such
time and (y) all obligations of the Company then owing to the Replaced Lender
(other than those specifically described in clause (x) above in respect of
which the assignment purchase price has been, or is concurrently being, deemed
paid) shall be paid in full to such Replaced Lender concurrently with such
replacement.  Upon the execution of the
respective Assignment and Acceptances, the payment of amounts referred to in
clauses (x) and (y) above and, if so requested by the 

 

42

 

Replacement
Lender, delivery to the Replacement Lender of the appropriate Note or Notes
executed by the Company, the Replacement Lender shall become a Lender hereunder
and the Replaced Lender shall cease to constitute a Lender hereunder.  The provisions of this Agreement (including
without limitation Sections 3.9 and 8.5) shall continue to govern the rights
and obligations of a Replaced Lender with respect to any Loans made or any
other actions taken by such lender while it was a Lender.  Nothing herein shall release any Defaulting
Lender from any obligation it may have to the Company, the Agent or any other
Lender.

 

ARTICLE IV

 

REPRESENTATIONS AND WARRANTIES

 

The Company represents and warrants that:

 

4.1           Corporate Existence and Power.  The Company and each Guarantor is duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, and is duly qualified to do business, and is
in good standing, in all additional jurisdictions where such qualification is
necessary under applicable law, except for those jurisdictions where the
failure to so qualify or be in good standing could not reasonably be expected
to result in any Material Adverse Effect. 
The Company and each Guarantor has all requisite power to own or lease
the properties used in its business and to carry on its business as now being
conducted and as proposed to be conducted except where the failure to have such
power could not reasonably be expected to result in a Material Adverse Effect,
and to execute and deliver the Loan Documents to which it is a party and to
engage in the transactions contemplated by the Loan Documents.

 

4.2           Corporate Authority.  The execution, delivery and performance by
the Company and the Guarantors of the Loan Documents to which each of them is a
party have been duly authorized by all necessary action and are not in
contravention of any law, rule or regulation, or any judgment, decree, writ,
injunction, order or award of any arbitrator, court or governmental authority,
or of the terms of the Company’s or any Guarantor’s organizational or governing
documents, or of any contract or undertaking to which the Company or any
Guarantor is a party or by which the Company or any Guarantor or their
respective property may be bound or affected or result in the imposition of any
Lien except for Permitted Liens.

 

4.3           Binding
Effect.  The Loan Documents to
which the Company or any Guarantor is a party are the legal, valid and binding
obligations of the Company and the Guarantors, respectively, enforceable
against the Company and the Guarantors in accordance with their respective
terms, subject to the effect of bankruptcy, insolvency, reorganization,
moratorium and other similar laws affecting the rights of creditors generally
and to general principles of equity.

 

4.4           Subsidiaries.  Schedule 4.4 hereto correctly sets
forth the legal name, jurisdiction of organization and ownership of each
Subsidiary and Joint Venture of the Company. 
Each such Subsidiary and Joint Venture is, and each Person becoming a
Subsidiary or Joint Venture of the Company after the date hereof will be a
corporation, partnership or limited liability company

 

43

 

duly organized,
validly existing and in good standing under the laws of its jurisdiction of
incorporation or organization and is and will be duly qualified to do business
in each additional jurisdiction where such qualification is or may be necessary
under applicable law, except for those jurisdictions where the failure to so
qualify or be in good standing could not reasonably be expected to result in
any Material Adverse Effect.  Each
Subsidiary and Joint Venture of the Company has and will have all requisite
power to own or lease the properties used in its business and to carry on its
business as now being conducted and as proposed to be conducted, except where
the failure to have such power could not reasonably be expected to result in a
Material Adverse Effect.  All outstanding
shares of Capital Stock of each class of each Subsidiary and Joint Venture of
the Company have been and will be validly issued and are and will be fully paid
and nonassessable and, except as otherwise indicated in Schedule 4.4
hereto, are and will be owned, beneficially and of record, by the Company or
another Subsidiary of the Company free and clear of any Liens other than as
permitted under this Agreement.

 

4.5           Litigation.  Except as set forth in Schedule 4.5
hereto, there is no action, suit or proceeding pending or, to the best of the
Company’s knowledge, threatened against or affecting the Company or any of its
Subsidiaries or any Guarantor before or by any court, governmental authority or
arbitrator, which if adversely decided could reasonably be expected to result,
either individually or collectively, in any Material Adverse Effect and, to the
best of the Company’s knowledge, there is no basis for any such action, suit or
proceeding.

 

4.6           Financial Condition.  The consolidated balance sheet of the
Company and its Subsidiaries and the consolidated statements of income,
retained earnings and cash flows of the Company and its Subsidiaries for the
fiscal year ended December 31, 2002 and reported on by Ernst & Young LLP,
independent certified public accountants, copies of which have been furnished
to the Lenders, and the consolidated balance sheet of the Company and its
Subsidiaries and the consolidated statements of income, retained earnings and
cash flows of the Company and its Subsidiaries for the fiscal quarter ended
June 30, 2003 fairly present, and the financial statements of the Company and
its Subsidiaries delivered pursuant to subsection 5.1(d) will fairly present,
the consolidated financial position of the Company and its Subsidiaries as at the
respective dates thereof, and the consolidated results of operations of the
Company and its Subsidiaries for the respective periods indicated, all in
accordance with Generally Accepted Accounting Principles (subject, in the case
of said interim statements, to year-end audit adjustments).  The Pro Forma Financial Statements are based
on appropriate assumptions and the best information available.  There has been no Material Adverse Effect
since the date of the most recent audited financial statements of the Company,
copies of which have been delivered to the Agent pursuant to subsection
5.1(d).  There is no material Contingent
Liability of the Company that is not reflected in such financial statements or
in the notes thereto.

 

4.7           Use of Revolving Credit Advances.  The Company will use the proceeds of the
initial Revolving Credit Advances and the Term Loan hereunder as described in Schedule
4.7, and for working capital and general corporate purposes.  Neither the Company nor any of its
Subsidiaries extends or maintains, in the ordinary course of business, credit
for the purpose, whether immediate, incidental, or ultimate, of buying or
carrying margin stock (within the meaning of Regulation T, U or X of the Board
of Governors of the Federal Reserve System), and

 

44

 

no part of the
proceeds of the Term Loan or any Revolving Credit Advance will be used for the
purpose, whether immediate, incidental, or ultimate, of buying or carrying any
such margin stock or maintaining or extending credit to others for such
purpose.

 

4.8           Consents,
Etc.  Except for such consents,
approvals, authorizations, declarations, registrations or filings delivered by
the Company pursuant to subsection 2.5(h), if any, each of which is in full
force and effect, no consent, approval or authorization of or declaration,
registration or filing with any governmental authority or any non-governmental
Person or entity, including without limitation any creditor, lessor or
stockholder of the Company or any of its Subsidiaries, is required on the part
of the Company or any Guarantor in connection with the execution, delivery and
performance of any Loan Document or the transactions contemplated hereby or as
a condition to the legality, validity or enforceability of any Loan Document,
which, if not obtained, received or made, could reasonably be expected to
result in a Material Adverse Effect.

 

4.9           Taxes.  The Company and its Subsidiaries have filed
all tax returns (federal, state and local) required to be filed and have paid
all taxes shown thereon to be due and required to be paid including interest
and penalties, or have established adequate financial reserves on their
respective books and records for payment thereof except where the failure to do
so could not reasonably be expected to result in a Material Adverse
Effect.  Neither the Company nor any of
its Subsidiaries knows of any actual or proposed tax assessment or any basis
therefor, and no extension of time for the assessment of deficiencies in any federal
or state tax has been granted by the Company or any Subsidiary.

 

4.10         Title to Properties.  Except as otherwise disclosed in the latest
balance sheet delivered pursuant to Section 4.6 or 5.1(d) of this Agreement,
the Company or one or more of its Subsidiaries have a valid and indefeasible
ownership interest in all of the properties and assets reflected in said
balance sheet and will have a valid and indefeasible ownership interest in all
of the properties and assets subsequently acquired by the Company or any
Subsidiary.  All of such properties and
assets are free and clear of any Lien except for Permitted Liens.  The Security Documents grant a first
priority, enforceable and perfected lien and security interest in all assets of
the Company and each Guarantor subject thereto which is not void or voidable,
subject only to Permitted Liens.

 

4.11         ERISA.  The Company, its Subsidiaries, the ERISA
Affiliates and the Plans are in compliance in all material respects with those
provisions of ERISA and of the Code which are applicable with respect to any
Plan. No Plan has been terminated within the past five years, and no steps have
been taken to terminate any Plan.  No
Prohibited Transaction and no Reportable Event has occurred with respect to any
Plan which could have a Material Adverse Effect.  The Company, its Subsidiaries and the ERISA Affiliates have met
the minimum funding requirements under ERISA and the Code with respect to each
of their respective Plans, other than obligations in the ordinary course of business
to make Plan contributions and pay PBGC premiums which have been paid when
due.  Assuming the funds provided by
each Lender do not constitute the plan assets of any pension plan, the
execution, delivery and performance of the Loan Documents does not constitute a
Prohibited Transaction.  There is no
material Unfunded

 

45

 

Benefit Liability
with respect to any Plan.  All
contributions (if any) have been made to any Multiemployer Plan that are
required to be made by the Company, its Subsidiaries, or the ERISA Affiliates,
except as could not reasonably be expected to have a Material Adverse
Effect.  Except as set forth on Schedule
4.11, neither the Company, any Subsidiary or any ERISA Affiliate has
withdrawn or partially withdrawn from any Multiemployer Plan, incurred any
withdrawal liability with respect to any such plan or received notice of any
claim or demand for withdrawal liability or partial withdrawal liability from
any such plan, and no condition has occurred which, if continued, might result
in a withdrawal or partial withdrawal from any Multiemployer Plan.  Neither the Company, any Subsidiary nor any
ERISA Affiliate has received any notice that any Multiemployer Plan is in
reorganization, that increased contributions may be required in order to avoid
a reduction in plan benefits or the imposition of any excise tax, that any such
Multiemployer Plan is or has been funded at a rate less than that required by
Section 412 of the Code or Section 302 of ERISA, that any such plan is or may
be terminated or that any such plan is or may become insolvent.

 

4.12         Disclosure.  No report or other information furnished in
writing by the Company or any Subsidiary or Guarantor to any Lender or the
Agent in connection with the negotiation or administration of this Agreement
contains, to the best of the Company’s knowledge, any material misstatement of
fact or omits to state any material fact or any fact necessary to make the
statements contained therein not misleading.  No Loan Document nor any other document, certificate, or report or
statement or other information furnished to any Lender or the Agent by or on
behalf of the Company or any Subsidiary or Guarantor in connection with the
transactions contemplated hereby contains any untrue statement of a material
fact or omits to state a material fact in order to make the statements
contained herein and therein not misleading. 
There is no fact known to the Company which could reasonably be expected
to have a Material Adverse Effect, which has not been set forth in this
Agreement or in the other documents, certificates, statements, reports any
other information furnished in writing to the Lenders by or on behalf of the
Company or any Subsidiary in connection with the transactions contemplated
hereby taken as a whole, including without limitation, the transactions
contemplated in the Subordinated Debt Documents and the Preferred Stock
Documents

 

4.13         Environmental and Safety Matters.

 

(a)           Except as set forth on Schedule
4.13, none of the Company, its Subsidiaries, its Joint Ventures nor (to the
Company’s best knowledge (without independent investigation or inquiry) as to
any operator other than the Company and any of its Subsidiaries and Joint
Ventures) any operator of the Real Estate or any operations thereon is or,
during the last three (3) years, has been in violation, or alleged violation,
of any Environmental Laws, which violation could reasonably be expected to have
a Material Adverse Effect;

 

(b)           Except as set forth on Schedule
4.13, neither the Company nor any of its Subsidiaries or its Joint Ventures
has received notice from any third party including, without limitation:  any federal, state or local governmental
authority, (i) that any one of them has been identified by the United States
Environmental Protection Agency (“EPA”) as a potentially responsible party
under CERCLA with respect to a site listed on the National Priorities List, 40

 

46

 

C.F.R. Part 300
Appendix B (1986); (ii) that any hazardous waste, as defined by 42 U.S.C.
§9601(5), any hazardous substances as defined by 42 U.S.C. §9601(14), any
pollutant or contaminant as defined by 42 U.S.C. §9601(33) and any toxic
substances, oil or hazardous materials or other chemicals or substances
regulated by any Environmental Laws (collectively, “Hazardous Materials”) which
any one of them has generated, transported or disposed of has been found at any
site at which a federal, state or local agency or other third party has conducted
or has ordered that the Company or any of its Subsidiaries or its Joint
Ventures conduct a remedial investigation, removal or other response action
pursuant to any Environmental Law; or (iii) that it is or shall be a named
party to any claim, action, cause of action, complaint, or legal or
administrative proceeding (in each case, contingent or otherwise) arising out
of any third party’s incurrence of costs, expenses, losses or damages of any
kind whatsoever in connection with the release of Hazardous Materials;

 

(c)           Except as set forth on Schedule
4.13 attached hereto, and to the best knowledge (without independent
investigation or inquiry) of the Company as to any actions, events or
circumstances occurring or created prior to the ownership, lease or management
of any of the Real Estate by the Company or any of its Subsidiaries or Joint
Ventures, and as to any operations conducted on any of the Real Estate by
parties other than the Company or any of its Subsidiaries or Joint Ventures:  (i) no portion of the Real Estate has been
used, except in accordance with applicable Environmental Laws, for the
handling, processing, storage (including without limitation the storage of
petroleum products in vehicles parked on any of the Real Estate and storage of petroleum
products in connection with the operation of vehicle rental agencies on any of
the Real Estate) or disposal of Hazardous Materials; and no underground tank or
other underground storage receptacle for Hazardous Materials is located on any
portion of the Real Estate (including without limitation in connection with the
operation of vehicle rental agencies) which are not covered by third-party
indemnification obligations in favor of the Company, its Subsidiaries or its
Joint Ventures, (ii) in the course of any activities conducted by the Company,
its Subsidiaries or its Joint Ventures or operators of its properties, no
Hazardous Materials have been generated or are being used on the Real Estate
except in accordance with applicable Environmental Laws, (iii) there have been
no releases (i.e. any past or present releasing, spilling, leaking, pumping,
pouring, emitting, emptying, discharging, injecting, escaping, disposing or
dumping) or (to the Company’s best knowledge) threatened releases of Hazardous
Materials on, upon, into or from the properties of the Company, its
Subsidiaries or its Joint Ventures, which releases would have a material
adverse effect on the value of any of the Real Estate or adjacent properties or
the environment, (iv) without independent investigation or inquiry, there have
been no releases on, upon, from or into any real property in the vicinity of
any of the Real Estate which, through soil or groundwater contamination, may
have come to be located on, and which would have a material adverse effect on
the value of, the Real Estate, and (v) in addition, any Hazardous Materials
that have been generated on any of the Real Estate have been transported
offsite only by carriers having an identification number issued by the EPA,
treated or disposed of only by treatment or disposal facilities maintaining
valid permits as required under applicable Environmental Laws, which
transporters and facilities have been and are operating in compliance with such
permits and applicable Environmental Laws; and

 

47

 

(d)           None of the Company,
its Subsidiaries, its Joint Ventures nor any of the other Real Estate is
subject to any applicable environmental law requiring the performance of
Hazardous Materials site assessments, or the removal or remediation of
Hazardous Materials, or the giving of notice to any governmental agency or the
recording or delivery to other Persons of an environmental disclosure document
or statement by virtue of the transactions set forth herein and contemplated
hereby, or as a condition to the recording of any Security Document or to the
effectiveness of any other transactions contemplated hereby.

 

4.14         No
Default.  Neither the Company
nor any Subsidiary, or Guarantor is in default or has received any written
notice of default under or with respect to any of its Contractual Obligations
in any respect which could reasonably be expected to result in a Material
Adverse Effect.  No Unmatured Event or
Event of Default has occurred and is continuing.

 

4.15         Intellectual Property.  Set forth on Schedule 4.15 is a
complete and accurate list of all registered patents, trademarks, trade names,
service marks and copyrights, and all applications therefor and licenses
thereof, of Parent, the Company and each of its Subsidiaries showing as of the
Effective Date the jurisdiction in which registered, the registration number
and the date of registration.  Parent,
the Company and each of its Subsidiaries owns, or is licensed to use, all
trademarks, tradenames, service marks, copyrights, technology, know-how and
processes necessary for the conduct of its business as currently conducted (the
“Intellectual Property”) except for those for which the failure to own or
license could not reasonably be expected to have a Material Adverse
Effect.  Except as otherwise set forth
on Schedule 4.15, no claim has been asserted and is pending by any
Person challenging or questioning the use of any such Intellectual Property or
the validity or effectiveness of any such Intellectual Property, nor does the
Company or any of its Subsidiaries know of any valid basis for any, such claim,
the use of such Intellectual Property by the Company and each of its
Subsidiaries does not infringe on the rights of any Person, and, to the
knowledge of the Company, no Intellectual Property has been infringed,
misappropriated or diluted by any other Person except for such claims,
infringements, misappropriation and dilutions that, in the aggregate, could not
reasonably be expected to have a Material Adverse Effect.

 

4.16         No Burdensome Restrictions.  No Requirement of Law or Contractual
Obligation applicable to the Company or any Subsidiary or Guarantor could
reasonably be expected to have a Material Adverse Effect in the absence of a
default thereunder.

 

4.17         Labor
Matters.  There are no strikes
or other labor disputes against the Company or any Subsidiary pending or, to
the knowledge of the Company, threatened that (individually or in the
aggregate) could reasonably be expected to have a Material Adverse Effect.  Hours worked by and payment made to
employees of the Company and its Subsidiaries have been in compliance with the
Fair Labor Standards Act, if applicable, and any other applicable Requirements
of Law dealing with such matters except where failure to so comply
(individually or in the aggregate) could not reasonably be expected to have a
Material Adverse Effect.  All payments
due from the Company and each of its Subsidiaries on account of employee health
and welfare insurance that (individually or in the aggregate) could reasonably
be expected to have a

 

48

 

Material Adverse
Effect if not paid have been paid or accrued as a liability on the books of the
Company and its Subsidiaries.

 

4.18         Solvency.

 

(a)           After giving effect to
the transactions described herein and to the incurrence or assumption of all
Indebtedness (including, without limitation, all Revolving Credit Advances and
Subordinated Debt and all Indebtedness in respect of Preferred Stock, incurred
or assumed on or about the Effective Date and all other obligations being
incurred or assumed) (i) the fair value of the assets of the Company and its
Subsidiaries on a consolidated basis, at a fair valuation, will exceed the
debts and liabilities, subordinated, contingent or otherwise, of the Company
and its Subsidiaries on a consolidated basis, (ii) the present fair saleable
value of the property of the Company and its Subsidiaries on a consolidated
basis will be greater than the amount that will be required to pay the probable
liability of the Company and its Subsidiaries on a consolidated basis on their
debts and other liabilities, subordinated, contingent or otherwise, as such
debts and other liabilities become absolute and matured, (iii) the Company and
its Subsidiaries on a consolidated basis will be able to pay their debts and
liabilities, subordinated, contingent or otherwise, as such debts and
liabilities become absolute and matured, and (iv) the Company and its
Subsidiaries on a consolidated basis will not have unreasonably small capital
with which to conduct the businesses in which they are engaged as such
businesses are now conducted and are proposed to be conducted after the date
hereof.

 

(b)           The Company does not
intend to, or to permit any of its Subsidiaries to, and does not believe that
it or any of its Subsidiaries will, incur debts beyond its and their ability to
pay such debts as they mature, taking into account the timing of and amounts of
cash to be received by it or any such Subsidiary and the timing of the amounts
of cash to be payable on or in respect of its Indebtedness or the Indebtedness
of any such Subsidiary.

 

4.19         Not an Investment Company or a
Holding Company; Other Regulations. 
Neither the Company nor any of its Subsidiaries is an “investment
company” within the meaning of the Investment Company Act of 1940, as amended,
or a “holding company”, or a “subsidiary company” of a “holding company”, or an
“affiliate” of a “holding company” or of a “subsidiary company” of a “holding company”,
within the meaning of the Public Utility Holding Company Act of 1935, as
amended.  Neither the Company nor any of
its Subsidiaries is subject to any regulation under any federal or state
statute or regulation which limits its ability to incur Indebtedness.

 

4.20         Subordinated
Debt Documents.  All
representations and warranties of the Company contained in any Subordinated
Debt Documents are, or will be, true and correct in all material respects as of
the dates required by such documents. 
All Lender Indebtedness is “Senior Debt” and “Designated Senior Debt” as
defined in the 14% Note Documents and the 9 1/4% Note Documents and entitled to
the benefits of all subordination provisions contained in such Subordinated
Debt Documents, and other than the Lender Indebtedness, there is no other
“Designated Senior Debt” thereunder. 
There is no event of default or event or condition which could become an
event of default with notice or lapse of time or both, under the Subordinated

 

49

 

Debt Documents and
each of the Subordinated Debt Documents is in full force and effect.  Other than pursuant to the 14% Notes, the 9
1/4% Notes and the Preferred Stock Documents, there is no obligation pursuant
to any Subordinated Debt Document or other document or agreement evidencing or
relating to any Subordinated Debt or Preferred Stock outstanding or to be
outstanding on the Effective Date which obligates the Company to pay any
principal or interest or redeem any of its Capital Stock or incur any other
monetary obligation.

 

4.21         Preferred
Stock Documents.  All
Preferred Stock Documents, and all payments and other obligations of the
Company with respect to the Preferred Stock, are described on Schedules
1.1-A-1 and 1.1A-2 hereto.

 

4.22         Bank
Accounts.  Schedule 4.22
sets forth, as of the Effective Date, the account numbers and location of all
accounts of the Company or any of its Subsidiaries.

 

4.23         Facility Leases and Facility Management
Agreements.  Schedule 4.23
hereto sets forth a listing of each Facility Lease and each Facility Management
Agreement to which the Company or any of its Subsidiaries is a party as lessee
or manager and specifies the city and state where the parking facility subject
to such lease or management agreement is located.

 

ARTICLE V

 

COVENANTS

 

5.1           Affirmative
Covenants.  The Company
covenants and agrees that, until the payment in full of the Lender Indebtedness
and the performance of all other obligations of the Company under this
Agreement, and the termination of the Revolving Commitments, unless the
requisite Lenders pursuant to Section 8.1 shall otherwise consent in writing,
it shall, and, shall cause each of its Subsidiaries to:

 

(a)           Preservation of
Corporate Existence, Etc.  To the
extent the failure to do so could reasonably be expected to have a Material
Adverse Effect, (i) do or cause to be done all things necessary to preserve,
renew and keep in full force and effect its legal existence and its
qualification as a foreign corporation, partnership or limited liability
company, as the case may be (other than in connection with any merger permitted
pursuant to subsections 5.2(g), (l) or (s) and other than any dissolution or
liquidations of any Subsidiary if the assets of such Subsidiary are transferred
to the Company or any Guarantor in connection with such dissolution or
liquidation), in good standing in each jurisdiction in which such qualification
is necessary under applicable law and the rights, licenses, permits (including
those required under applicable Environmental Laws), franchises, patents,
copyrights, trademarks and trade names material to the conduct of its
businesses; provided, however, that the Company shall not be required to
preserve any such right, license or franchise, or the corporate, partnership or
other existence of any of its Subsidiaries, if the Board of Directors shall
determine that the preservation thereof is no longer desirable in the conduct
of the business of the Company and its Subsidiaries, taken as a whole, and that
the loss thereof is not adverse in any material respect to the Agent or the
Lenders; and (ii) defend all of the foregoing against all claims, actions,
demands, suits or

 

50

 

proceedings at law
or in equity or by or before any governmental instrumentality or other agency
or regulatory authority.

 

(b)           Compliance with
Laws, Etc.  Comply in all material
respects with all applicable laws, rules, regulations and orders of any
governmental or regulatory authority whether federal, state, local or foreign
(including without limitation ERISA, the Code and Environmental Laws), in
effect from time to time, except to the extent the failure to so comply could
not reasonably be expected to have a Material Adverse Effect, and pay and discharge,
before any interest or penalty for nonpayment thereof becomes payable, all
taxes, assessments and governmental charges or levies imposed upon it or upon
its income, revenues or property before the same shall become delinquent or in
default, as well as all lawful claims for labor, materials and supplies or
otherwise, which, if unpaid, might give rise to Liens (other than Permitted
Liens) upon its properties or any portion thereof, except to the extent that
payment of any of the foregoing is then being contested in good faith by
appropriate legal proceedings and with respect to which adequate financial
reserves have been established on the books and records of the Company or the
applicable Subsidiary.

 

(c)           Maintenance of
Properties; Insurance.  Maintain,
preserve and protect all property that is material to the conduct of the
business of the Company or any of its Subsidiaries and keep such property in
good repair, working order and condition (ordinary wear and tear and casualty
covered by insurance in compliance with this subsection 5.1(c) excepted) and
from time to time make, or cause to be made, all needful and proper repairs,
renewals, additions, improvements and replacements thereto necessary in order
that the business carried on in connection therewith may be properly conducted
at all times in accordance with customary and prudent business practices for
similar businesses; and maintain in full force and effect insurance with
responsible and reputable insurance companies or associations in such amounts,
on such terms and covering such risks, including fire and other risks insured
against by extended coverage, as is usually carried by companies engaged in
similar businesses and owning similar properties similarly situated and
maintain in full force and effect public liability insurance, insurance against
claims for personal injury or death or property damage occurring in connection
with any of its activities or any properties owned, occupied, controlled or
managed by it, in such amount as is usually carried by companies engaged in
similar businesses and owning, occupying or operating similar properties
similarly situated, and maintain such other insurance as may be required by law
or as may be reasonably requested by the Required Lenders for purposes of assuring
compliance with this subsection 5.1(c). 
The Company shall provide the Agent satisfactory written evidence of the
coverage amounts and effective dates of all such insurance policies, and shall
list the Agent on all such policies as a lender loss payee, mortgagee or
additional insured, as applicable, for the benefit of the Lenders, shall
deliver a lender’s loss payable endorsement for all property, casualty and
business interruption policies with standard mortgagee provisions, and shall
further provide evidence that all such policies may be cancelled only upon 30
days’ notice to the Agent.

 

(d)           Reporting
Requirements.  Furnish to the
Lenders and the Agent the following:

 

51

 

(i)            Promptly
and in any event within five Business Days after becoming aware of the
occurrence of (A) any Unmatured Event or Event of Default, (B) the commencement
of any litigation against, by or affecting the Company or any of its
Subsidiaries, which could be reasonably expected to have a Material Adverse
Effect, and any material developments therein, or (C) entering into any
material contract or undertaking that is not entered into in the ordinary
course of business, or (D) any Reportable Event; or (E) any development in the
business or affairs of the Company or any of its Subsidiaries which has
resulted in or which could be likely in the reasonable judgment of the Company,
to result in a Material Adverse Effect, a statement of the chief financial
officer of the Company setting forth details of such occurrence and the action
which the Company or such Subsidiary, as the case may be, has taken and
proposes to take with respect thereto;

 

(ii)           Promptly
upon request therefor from the Agent at any time after the occurrence and
during the continuance of an Event of Default, and in any event (A) within
twenty (20) Business Days after the end of each month, a calculation of the
Borrowing Base in the form attached hereto as Exhibit K, certified by the chief
financial officer of the Company, and (B) no later than the end of the next
month following the month of determination, internally-prepared monthly
statements of operation, balance sheets and cash flow statements substantially
consistent in form and content with the example attached hereto as Exhibit L
(which statements are not prepared in accordance with Generally Accepted
Accounting Principles);

 

(iii)          As soon as available and in any event within
45 days after the end of each fiscal quarter of the Company, the consolidated
balance sheet of the Company and its Subsidiaries as of the end of such
quarter, and the related consolidated statements of income and cash flows for
such quarter and for the period commencing at the end of the previous fiscal
year and ending with the end of such quarter, setting forth in each case in
comparative form the corresponding figures for the corresponding date or period
of the preceding fiscal year and duly certified (subject to year-end audit
adjustments) by the chief financial officer of the Company as having been
prepared in accordance with Generally Accepted Accounting Principles, together
with a certificate of the chief financial officer of the Company stating (A)
that no Unmatured Event or Event of Default, has occurred and is continuing or,
if an Unmatured Event or Event of Default has occurred and is continuing, a
statement setting forth the details thereof and the action which the Company
has taken and/or proposes to take with respect thereto, and (B) beginning with
the certificate delivered for the quarter ending September 30, 2003 that a
computation (which computation shall accompany such certificate and shall be in
detail satisfactory to the Agent) showing compliance with subsection 5.2(a),
(b), (c) and (d) hereof is in conformity with the terms of this Agreement;

 

(iv)          As
soon as available and in any event within 90 days after the end of each fiscal
year of the Company, a copy of the consolidated balance sheet of the Company
and its Subsidiaries as of the end of such fiscal year and the related
consolidated statements of income and cash flows for such fiscal year, with a
customary

 

52

 

audit
report of Ernst & Young LLP, or any of the five largest independent
certified public accounting firms in the United States, without qualifications
unacceptable to the Agent, together with, a certificate of the chief financial
officer of the Company stating (A) that no Unmatured Event or Event of Default
has occurred and is continuing, or, if an Unmatured Event or Event of Default
has occurred and is continuing, a statement setting forth the details thereof
and the action which the Company has taken and/or proposes to take with respect
thereto, and (B) beginning with the certificate delivered for the year ending
December 31, 2003 that a computation (which computation shall accompany such
certificate and shall be in reasonable detail) showing compliance with
subsection 5.2(a), (b), (c) and (d) hereof is in conformity with the terms of
this Agreement;

 

(v)           Promptly
after the sending or filing thereof, copies of all reports, proxy statements
and financial statements which the Company or any of its Subsidiaries sends to
or files with any of their respective security holders or any securities
exchange or the SEC;

 

(vi)          On
an annual basis, and concurrently with the delivery of any reports or
statements referenced in (iv) above, the Company shall deliver to the Agent a
complete set of schedules to this Agreement, revised to reflect all information
described in such schedules that is new or changed from the prior year, and
each schedule hereto shall, for purposes of subsection 2.6(a), speak only as of
the date last revised, there being no implied obligation to update the
schedules as of the time of each disbursement in order to make the representations
and warranties contained in Article IV true and correct as of the time of such
disbursement, except for Schedules 1.1-E, 2.5(m), 4.4, 4.5, 4.13 and 4.15,
which shall be revised and delivered to the Agent within 10 Business Days of
any change in the information contained in any such schedule, further subject
to any requirement, contained in this Agreement or in the Security Documents,
to give prior notice to the Agent or the Lenders with respect to the
information contained in any such schedule; provided, however,
that notwithstanding that any such supplement to a schedule may disclose the
existence or occurrence of events, facts or circumstances which are either
prohibited by the terms of this Agreement or any other Loan Documents or which
result in the breach of any representation or warranty, such supplement to such
schedule or representation shall not be deemed either an amendment thereof or a
waiver of such breach unless expressly consented to in writing by Agent and the
Required Lenders, and no such amendments, except as the same may be consented
to in a writing which expressly includes a waiver, shall be or be deemed a
waiver by the Agent or any Lender of any Event of Default disclosed therein,
and provided, further, any items disclosed in any such
supplemental disclosures shall be included in the calculation of any limits,
baskets or similar restrictions contained in this Agreement or any of the other
Loan Documents;

 

(vii)         Promptly and in any event within 10 Business
Days after receipt, a copy of any management letter or comparable analysis
prepared by the auditors for the Company or any of its Subsidiaries;

 

53

 

(viii)        Not later than January 31 of each year of the
Company, (a) a budget prepared by the Company for the following fiscal year,
and (b) a forecast prepared by the Company for the two consecutive fiscal years
thereafter, and

 

(ix)           Promptly,
such other information respecting the business, properties, operations,
collateral or condition, financial or otherwise, of Parent, the Company or any
of their respective Subsidiaries as any Lender or the Agent may from time to
time reasonably request.

 

(e)           Accounting, Access
to Records, Books, Etc.  Maintain a
system of accounting established and administered in accordance with sound
business practices to permit preparation of financial statements in accordance
with Generally Accepted Accounting Principles and to comply with the
requirements of this Agreement and, upon reasonable prior notice, at any
reasonable time and from time to time, (i) permit any Lender or the Agent, or
any agents or representatives thereof (including, without limitation, any
auditor or consultant engaged by counsel for any Lender or the Agent), to
examine and make copies of and abstracts from the records and books of account
of, and visit the properties of, the Company and its Subsidiaries, and to
discuss the affairs, finances and accounts of the Company and its Subsidiaries
with their respective directors, officers and independent auditors, and by this
provision the Company does hereby authorize such Persons to discuss such
affairs, finances and accounts with any Lender or the Agent, (ii) permit the
Agent or any of its agents or representatives (including, without limitation,
any auditor or consultant engaged by counsel for any Lender or the Agent) to
conduct a comprehensive field audit of its books, records, properties and
assets, including without limitation all collateral subject to the Security
Documents, provided, however, the Company shall only be obligated
to pay for two such audits per fiscal year (unless an Event of Default has
occurred and is continuing, in which case the Company’s obligation to pay for
any such audits shall be unlimited).

 

(f)            Additional Security
and Collateral.  Promptly (i)
execute and deliver and cause each Guarantor to execute and deliver, additional
Security Documents, within 30 days after request therefor by the Agent,
sufficient to grant to the Agent for the benefit of the Lenders and the Agent
liens and security interests in any after acquired property, to the extent
required under Section 2.10, (ii) cause each Person becoming a Domestic
Subsidiary and which meets the definition of a Guarantor from time to time to
execute and deliver to the Lenders and the Agent, within 30 days after such
Person becomes a Domestic Subsidiary, a Guaranty, a Security Agreement and a
Pledge Agreement, and cause the parent of such Domestic Subsidiary to execute
and deliver to the Lenders and the Agent within such period a pledge agreement
(if one has not already been executed and delivered), sufficient to grant to
the Agent for the benefit of the Lenders and the Agent liens and security
interests in all collateral of the type described in Section 2.10; and (iii) cause
the parent of each Person becoming a Foreign Subsidiary or Joint Venture from
time to time to execute and deliver to the Lenders and the Agent, within 30
days after such Person becomes a Subsidiary or Joint Venture, a Pledge
Agreement sufficient to grant to the Agent for the benefit of the Lenders and
the Agent liens and security interests in all collateral of the type described
in subsection 2.10(c).  The Company
shall notify the Lenders and the Agent, within 10 days after the occurrence
thereof, of the acquisition of any property by the

 

54

 

Company or any
Guarantor that is not subject to the existing Security Documents, any Person
becoming a Subsidiary and any other event or condition, other than the passage
of time, that may require additional action of any nature in order to create or
preserve the effectiveness and perfected status of the liens and security
interests of the Lenders and the Agent with respect to such property pursuant
to the Security Documents, including without limitation delivering the
originals of all promissory notes and other instruments payable to the Company
or any Guarantor to the Agent and delivering the originals of all stock
certificates or other certificates evidencing any Capital Stock owned by the
Company or any Guarantor at any time.

 

(g)           Bank Accounts.  The Company shall maintain all of its and
its Subsidiaries’ disbursement accounts with LaSalle, and shall open all new
disbursement accounts with LaSalle, and shall otherwise maintain LaSalle as its
primary depository bank and provider of cash management services,
notwithstanding that the Company and its Subsidiaries may maintain (i) an
account with U.S. Bank (formerly known as, Firstar Bank, NA) for collection of
credit card receipts, provided, that such account is swept daily to a
concentration account in the name of the Company maintained at LaSalle, (ii)
local depository and disbursement accounts with other financial institutions in
Canada, as necessary to the conduct of the Company’s or its Subsidiaries’
business there, and (iii) local depository and disbursement accounts in the
United States of America as necessary to pay payroll expenses or otherwise
necessary to the conduct of business, in the locations where the Company or its
Subsidiaries are doing business, provided, that with respect to any
local depository accounts not maintained at LaSalle, such accounts are swept
(net of amounts necessary to pay payroll expenses) daily, where daily
electronic wire transfers are available and cost effective, to a concentration
account maintained at LaSalle, or are swept (net of amounts necessary to pay
payroll expenses) to such concentration account no less often than three times
a week where daily wire transfers are not available or are not cost
effective.  LaSalle shall use
commercially reasonable efforts to cooperate with the Company in complying with
this subsection 5.1(g).  At all times on
and after the Effective Date, the Company and its Subsidiaries shall sweep
funds from all its and their respective accounts, wheresoever located, to the
concentration account maintained by LaSalle, and all amounts received in such
concentration account shall be (i) further swept into the Company’s
disbursement accounts maintained by LaSalle, provided no Event of Default has
occurred or is continuing, or (ii) applied to the Lender Indebtedness on such
terms required by the Agent at any time after the occurrence and during the
continuance of an Event of Default.

 

(h)           Further Assurances.  Execute and deliver within 30 days after
request therefor by the Agent, all further instruments and documents and take
all further action that the Agent may reasonably request, in order to give
effect to the intent of, and to aid in the exercise and enforcement of the
rights and remedies of the Agent and the Lenders under, the Loan
Documents.  At all times on and after
the occurrence, and during the continuation, of an Event of Default, the
Company and the Guarantors shall direct all clients and other Account Debtors
to make all payments in connection with any obligations to the Company or any
Guarantor (other than obligations with respect to credit card payments, which
shall be collected in accordance with subsection 2.6(c) hereof) directly to a
lockbox in the name, and under the control, of the Agent, and all amounts
received in such lockbox shall be applied to the Lender Indebtedness on such
terms required by the Agent, and the Company and the Guarantors shall promptly
execute

 

55

 

such documents and
agreements required by the Agent in connection therewith, each in form and
substance satisfactory to the Agent.

 

5.2           Negative
Covenants.  Until payment
in full of the Lender Indebtedness and the performance of all other obligations
of the Company under this Agreement and irrevocable termination of the
Commitments, the Company agrees that, unless the Required Lenders, the Required
Revolving Lenders or the Required Term Loan Lenders, as applicable, shall
otherwise consent in writing pursuant to Section 8.1 hereof, it shall not, and
shall not permit any of its Subsidiaries, to:

 

(a)           Adjusted Total Debt
to Adjusted EBITDA Ratio.

 

(i)            Permit
or suffer the Adjusted Total Debt to Adjusted EBITDA Ratio to be greater than
the levels set forth in the following table as of the dates shown:

 

	
  Date of Measurement

  	
   

  	
  Required
  Ratio

  	
   

  
	
  September 30, 2003

  	
   

  	
  6.88 to 1.00

  	
   

  
	
  December 31, 2003

  	
   

  	
  6.73 to 1.00

  	
   

  
	
  March 31, 2004

  	
   

  	
  6.73 to 1.00

  	
   

  
	
  June 30, 2004

  	
   

  	
  6.73 to 1.00

  	
   

  
	
  September 30, 2004

  	
   

  	
  6.73 to 1.00

  	
   

  
	
  December 31, 2004

  	
   

  	
  6.27 to 1.00

  	
   

  
	
  March 31, 2005

  	
   

  	
  6.27 to 1.00

  	
   

  
	
  June 30, 2005

  	
   

  	
  6.27 to 1.00

  	
   

  
	
  September 30, 2005

  	
   

  	
  6.27 to 1.00

  	
   

  
	
  December 31, 2005

  	
   

  	
  5.71 to 1.00

  	
   

  
	
  March 31, 2006

  	
   

  	
  5.71 to 1.00

  	
   

  
	
  June 30, 2006

  	
   

  	
  5.71 to 1.00

  	
   

  

 

(ii)           Permit
or suffer the Adjusted Total Debt to Adjusted EBITDA Ratio to be greater than
the levels set forth in the following table as of the dates shown:

 

	
  Date of Measurement

  	
   

  	
  Required
  Ratio

  	
   

  
	
  September 30, 2003

  	
   

  	
  7.50 to 1.00

  	
   

  
	
  December 31, 2003

  	
   

  	
  7.34 to 1.00

  	
   

  
	
  March 31, 2004

  	
   

  	
  7.34 to 1.00

  	
   

  
	
  June 30, 2004

  	
   

  	
  7.34 to 1.00

  	
   

  
	
  September 30, 2004

  	
   

  	
  7.34 to 1.00

  	
   

  
	
  December 31, 2004

  	
   

  	
  6.84 to 1.00

  	
   

  
	
  March 31, 2005

  	
   

  	
  6.84 to 1.00

  	
   

  
	
  June 30, 2005

  	
   

  	
  6.84 to 1.00

  	
   

  
	
  September 30, 2005

  	
   

  	
  6.84 to 1.00

  	
   

  
	
  December 31, 2005

  	
   

  	
  6.23 to 1.00

  	
   

  
	
  March 31, 2006

  	
   

  	
  6.23 to 1.00

  	
   

  
	
  June 30, 2006

  	
   

  	
  6.23 to 1.00

  	
   

  

 

56

 

(b)           Interest Coverage
Ratio.

 

(i)            Permit
or suffer the Interest Coverage Ratio to be less than the levels set forth in
the following table as of the dates shown:

 

	
  Date of Measurement

  	
   

  	
  Required
  Ratio

  	
   

  
	
  September 30, 2003

  	
   

  	
  1.50 to 1.00

  	
   

  
	
  December 31, 2003

  	
   

  	
  1.56 to 1.00

  	
   

  
	
  March 31, 2004

  	
   

  	
  1.56 to 1.00

  	
   

  
	
  June 30, 2004

  	
   

  	
  1.56 to 1.00

  	
   

  
	
  September 30, 2004

  	
   

  	
  1.56 to 1.00

  	
   

  
	
  December 31, 2004

  	
   

  	
  1.66 to 1.00

  	
   

  
	
  March 31, 2005

  	
   

  	
  1.66 to 1.00

  	
   

  
	
  June 30, 2005

  	
   

  	
  1.66 to 1.00

  	
   

  
	
  September 30, 2005

  	
   

  	
  1.66 to 1.00

  	
   

  
	
  December 31, 2005

  	
   

  	
  1.72 to 1.00

  	
   

  
	
  March 31, 2006

  	
   

  	
  1.72 to 1.00

  	
   

  
	
  June 30, 2006

  	
   

  	
  1.72 to 1.00

  	
   

  

 

(ii)           Permit
or suffer the Interest Coverage Ratio to be less than the levels set forth in
the following table as of the dates shown:

 

	
  Date of Measurement

  	
   

  	
  Required
  Ratio

  	
   

  
	
  September 30, 2003

  	
   

  	
  1.33 to 1.00

  	
   

  
	
  December 31, 2003

  	
   

  	
  1.39 to 1.00

  	
   

  
	
  March 31, 2004

  	
   

  	
  1.39 to 1.00

  	
   

  
	
  June 30, 2004

  	
   

  	
  1.39 to 1.00

  	
   

  
	
  September 30, 2004

  	
   

  	
  1.39 to 1.00

  	
   

  
	
  December 31, 2004

  	
   

  	
  1.47 to 1.00

  	
   

  
	
  March 31, 2005

  	
   

  	
  1.47 to 1.00

  	
   

  
	
  June 30, 2005

  	
   

  	
  1.47 to 1.00

  	
   

  
	
  September 30, 2005

  	
   

  	
  1.47 to 1.00

  	
   

  
	
  December 31, 2005

  	
   

  	
  1.53 to 1.00

  	
   

  
	
  March 31, 2006

  	
   

  	
  1.53 to 1.00

  	
   

  
	
  June 30, 2006

  	
   

  	
  1.53 to 1.00

  	
   

  

 

(c)           Fixed Charge
Coverage Ratio.

 

(i)            Permit
or suffer the Fixed Charge Coverage Ratio to be less than the levels set forth
in the following table as of the dates shown:

 

	
  Date of Measurement

  	
   

  	
  Required
  Ratio

  	
   

  
	
  September 30, 2003

  	
   

  	
  1.09 to 1.00

  	
   

  
	
  December 31, 2003

  	
   

  	
  1.12 to 1.00

  	
   

  
	
  March 31, 2004

  	
   

  	
  1.12 to 1.00

  	
   

  
	
  June 30, 2004

  	
   

  	
  1.12 to 1.00

  	
   

  
	
  September 30, 2004

  	
   

  	
  1.12 to 1.00

  	
   

  
	
  December 31, 2004

  	
   

  	
  1.13 to 1.00

  	
   

  
	
  March 31, 2005

  	
   

  	
  1.13 to 1.00

  	
   

  
	
  June 30, 2005

  	
   

  	
  1.13 to 1.00

  	
   

  
	
  September 30, 2005

  	
   

  	
  1.13 to 1.00

  	
   

  
	
  December 31, 2005

  	
   

  	
  1.19 to 1.00

  	
   

  
	
  March 31, 2006

  	
   

  	
  1.19 to 1.00

  	
   

  
	
  June 30, 2006

  	
   

  	
  1.19 to 1.00

  	
   

  

 

57

 

(ii)           Permit
or suffer the Fixed Charge Coverage Ratio to be less than the levels set forth
in the following table as of the dates shown:

 

	
  Date of Measurement

  	
   

  	
  Required
  Ratio

  	
   

  
	
  September 30, 2003

  	
   

  	
  0.97 to 1.00

  	
   

  
	
  December 31, 2003

  	
   

  	
  1.00 to 1.00

  	
   

  
	
  March 31, 2004

  	
   

  	
  1.00 to 1.00

  	
   

  
	
  June 30, 2004

  	
   

  	
  1.00 to 1.00

  	
   

  
	
  September 30, 2004

  	
   

  	
  1.00 to 1.00

  	
   

  
	
  December 31, 2004

  	
   

  	
  1.00 to 1.00

  	
   

  
	
  March 31, 2005

  	
   

  	
  1.00 to 1.00

  	
   

  
	
  June 30, 2005

  	
   

  	
  1.00 to 1.00

  	
   

  
	
  September 30, 2005

  	
   

  	
  1.00 to 1.00

  	
   

  
	
  December 31, 2005

  	
   

  	
  1.05 to 1.00

  	
   

  
	
  March 31, 2006

  	
   

  	
  1.05 to 1.00

  	
   

  
	
  June 30, 2006

  	
   

  	
  1.05 to 1.00

  	
   

  

 

(d)           Senior Debt to
Adjusted EBITDA Ratio.

 

(i)            Permit
or suffer the Senior Debt to Adjusted EBITDA Ratio to be greater than the
levels set forth in the following table as of the dates shown:

 

	
  Date of Measurement

  	
   

  	
  Required
  Ratio

  	
   

  
	
  September 30, 2003

  	
   

  	
  2.42 to 1.00

  	
   

  
	
  December 31, 2003

  	
   

  	
  2.41 to 1.00

  	
   

  
	
  March 31, 2004

  	
   

  	
  2.41 to 1.00

  	
   

  
	
  June 30, 2004

  	
   

  	
  2.41 to 1.00

  	
   

  
	
  September 30, 2004

  	
   

  	
  2.41 to 1.00

  	
   

  
	
  December 31, 2004

  	
   

  	
  2.25 to 1.00

  	
   

  
	
  March 31, 2005

  	
   

  	
  2.25 to 1.00

  	
   

  
	
  June 30, 2005

  	
   

  	
  2.25 to 1.00

  	
   

  
	
  September 30, 2005

  	
   

  	
  2.25 to 1.00

  	
   

  
	
  December 31, 2005

  	
   

  	
  2.15 to 1.00

  	
   

  
	
  March 31, 2006

  	
   

  	
  2.15 to 1.00

  	
   

  
	
  June 30, 2006

  	
   

  	
  2.15 to 1.00

  	
   

  

 

58

 

(ii)           Permit
or suffer the Senior Debt to Adjusted EBITDA Ratio to be greater than the levels
set forth in the following table as of the dates shown:

 

	
  Date of Measurement

  	
   

  	
  Required
  Ratio

  	
   

  
	
  September 30, 2003

  	
   

  	
  2.64 to 1.00

  	
   

  
	
  December 31, 2003

  	
   

  	
  2.63 to 1.00

  	
   

  
	
  March 31, 2004

  	
   

  	
  2.63 to 1.00

  	
   

  
	
  June 30, 2004

  	
   

  	
  2.63 to 1.00

  	
   

  
	
  September 30, 2004

  	
   

  	
  2.63 to 1.00

  	
   

  
	
  December 31, 2004

  	
   

  	
  2.45 to 1.00

  	
   

  
	
  March 31, 2005

  	
   

  	
  2.45 to 1.00

  	
   

  
	
  June 30, 2005

  	
   

  	
  2.45 to 1.00

  	
   

  
	
  September 30, 2005

  	
   

  	
  2.45 to 1.00

  	
   

  
	
  December 31, 2005

  	
   

  	
  2.35 to 1.00

  	
   

  
	
  March 31, 2006

  	
   

  	
  2.35 to 1.00

  	
   

  
	
  June 30, 2006

  	
   

  	
  2.35 to 1.00

  	
   

  

 

(e)           Indebtedness.  Create, incur, assume or in any manner
become liable in respect of, or suffer to exist, or permit or suffer any
Subsidiary to create, incur, assume or in any manner become liable in respect
of, or suffer to exist, any Indebtedness other than:

 

(i)            The
Lender Indebtedness;

 

(ii)           The
Indebtedness described in Schedule 5.2(e) hereto and renewals,
extensions and refinancings thereof, but no increase in the amount thereof (as
such amount is reduced from time to time) and no modifications of the terms
thereof which is less favorable to the Company or more restrictive on the
Company in any material manner shall be permitted;

 

(iii)          Indebtedness of any Guarantor owing to the
Company or to any other Guarantor (other than the Parent);

 

(iv)          Subordinated
Debt, including the related subordinated guarantees, pursuant to the
Subordinated Debt Documents, provided that (A) immediately before and after (on
a pro forma basis acceptable to the Agent and supported by such certificates
required by the Agent) the incurrence of any such Subordinated Debt, no
Unmatured Event or Event of Default shall exist or shall have occurred and be
continuing and the Company shall be in pro forma compliance with all financial
and other covenants contained herein as of the date of incurrence of such
Subordinated Debt and for the following year and (B) all agreements, documents
and instruments relating to such Subordinated Debt shall have been delivered to
and approved by the Agent and the Required Lenders prior to the incurrence of
such Subordinated Debt;

 

(v)           Trade
accounts payable and accrued expenses arising in the ordinary course which are
past due in an amount which is not material in the aggregate

 

59

 

for
the Company and its Subsidiaries on a consolidated basis or which are being
contested in good faith by appropriate proceedings and for which adequate
reserves are maintained on the books of the Company;

 

(vi)          Earnouts
with respect to Permitted Acquisitions made by the Company;

 

(vii)         Indebtedness which is nonrecourse to the
Company or its Subsidiaries, provided that the aggregate amount of such
nonrecourse Indebtedness does not exceed $10,000,000 and such nonrecourse terms
and the other terms of such financing are acceptable to the Agent;

 

(viii)        Indebtedness incurred to finance insurance
premiums in the ordinary course of business consistent with past practices of
the Company;

 

(ix)           Indebtedness
of Subsidiaries and Joint Ventures which are not Guarantors owing to the
Company or a Guarantor (other than the Parent) not exceeding an aggregate
amount equal to the book value of three percent (3%) of Total Assets; provided,
that any such Indebtedness shall reduce, dollar for dollar, the available
transactions permitted by subsection 5.2(l)(13);

 

(x)            Indebtedness
represented by the subtraction of Adjusted Off-Balance Sheet Liabilities from
Off-Balance Sheet Liabilities;

 

(xi)           Indebtedness
(other than Indebtedness to (i) Parent, or (ii) the Principals, the Related
Parties and their respective Affiliates) other than as described in clauses (i)
through (x) above and (xiii) below not exceeding an aggregate amount equal to
the book value of three percent (3%) of Total Assets, provided that not more
than 50% of the Indebtedness incurred or otherwise outstanding pursuant to this
clause (xi) may be secured by Permitted Liens;

 

(xii)          any Indebtedness which may otherwise be
permitted pursuant to subsections 5.2(l) and (s); and

 

(xiii)         any Indebtedness arising from Ordinary Course
Capital Leases.

 

(f)            Liens.  Create, incur or suffer to exist any Lien on
any of the assets, rights, revenues or property, real, personal or mixed,
tangible or intangible, whether now owned or hereafter acquired, of the Company
or any of its Subsidiaries, other than:

 

(i)            Liens
in favor of the Agent for the benefit of the Lenders and the Agent;

 

(ii)           Liens
imposed by law (other than liens imposed by ERISA or Section 412 of the Code),
carriers’, warehousemen’s or mechanic’s Liens, operators’ or drillers’ Liens
and Liens to secure claims for labor, material or supplies arising in the

 

60

 

ordinary
course of business, but only to the extent that payment thereof shall not at
time be due or shall be contested in good faith by appropriate proceedings
diligently conducted, with respect to which appropriate reserves have been set
aside and as to which there has been no seizure of or foreclosure upon assets
subject to such Liens;

 

(iii)          deposits or pledges to secure payment of
workmen’s compensation, unemployment insurance, old age pensions or other
social security, or to secure the performance of bids, tenders, contracts
(other than those relating to borrowed money) or leases or to secure statutory
obligations or surety or appeal bonds, or to secure indemnity, performance or
other similar bonds in the ordinary course of business, or in connection with
contests, to the extent that payment thereof shall not at the time be due or
shall be contested in good faith by appropriate proceedings diligently conducted
and there have been set aside on its books appropriate reserves with respect
thereto;

 

(iv)          Liens
securing taxes, assessments, levies or other governmental charges which are not
overdue or which, in an amount not exceeding $1,000,000 in the aggregate, are
being contested in good faith by appropriate proceedings diligently conducted,
with respect to which reasonable reserves have been set aside and as to which
there has been no seizure of or foreclosure upon assets subject to the Liens;

 

(v)           Liens
consisting of encumbrances, easements or reservations of, or rights of others
for, rights-of-way, sewers, electric lines, telecommunications lines and other
similar purposes, zoning restrictions, restrictions on the use of real property
and minor defects and irregularities in the title thereto, and other similar
encumbrances, none of which in the opinion of the Agent interferes with the use
of the property subject thereto by the Company or such Subsidiary in the
ordinary conduct of its business;

 

(vi)          Liens
existing on the date hereof and listed on Schedule 5.2(f) hereto
(including without limitation subordinated Liens created pursuant to the
Subordinated Debt Documents), provided that neither the Indebtedness secured by
any such existing Liens nor the property subject thereto shall increase;

 

(vii)         Liens on the daily revenues in favor of
Persons other than the Company or its Affiliates who are parties to the
Facility Leases and Facility Management Agreements for the amounts due to them
pursuant thereto;

 

(viii)        purported Liens in the ordinary course of
business on fixtures to the extent applicable law permits a mortgagee to claim
an interest therein, provided that such purported Liens do not secure any
Indebtedness of the Company or any of its Affiliates;

 

(ix)           any
Lien created to secure payment of a portion of the purchase price of, or
existing at the time of acquisition of, any tangible fixed asset (including
Liens granted in connection with Ordinary Course Capital Leases) acquired by
the Company or any of its Subsidiaries may be created or suffer to exist upon
such tangible fixed asset if

 

61

 

the
outstanding principal amount of the Indebtedness secured by such Lien does not
exceed the purchase price paid by the Company or such Subsidiary for such
tangible fixed asset provided that (A) such Lien does not encumber any other
asset at any time owned by the Company or such Subsidiary, (B) not more than
one such Lien shall encumber such tangible fixed asset at any one time and (C)
the aggregate amount of Indebtedness secured by all such Liens shall not exceed
the amounts permitted by subsections 5.2(e)(ii) and (xi);

 

(x)            Liens
on unearned insurance premiums to secure Indebtedness referred to in subsection
5.2(e)(viii);

 

(xi)           Liens
arising by applicable law in respect of employees’ wages, salaries or
commissions not overdue; and

 

(xii)          Liens arising out of judgments or awards not
exceeding $1,000,000 in the aggregate against the Company or its Subsidiaries
with respect to which the Company or such Subsidiary shall be in good faith
prosecuting an appeal or a proceeding or review and the enforcement of such
Lien is stayed pending such appeal or review.

 

(g)           Merger;
Acquisitions; Etc.  Make any
Acquisition; nor merge or consolidate or amalgamate with any other Person or
take any other action having a similar effect, nor enter into any joint venture
or similar arrangement with any other Person, except (i) that the Agent, the
Required Lenders may permit Acquisitions on terms acceptable to the Agent and
the Required Lenders (collectively, “Permitted Acquisitions”), and (ii) as may
be otherwise permitted pursuant to subsections 5.2(l) and (s).

 

(h)           Disposition of
Assets, Etc.  Sell, lease, license,
transfer, assign or otherwise dispose of all or any portion of its business,
assets, rights, revenues or property, real, personal or mixed, tangible or
intangible, whether in one or a series of transactions, other than inventory
sold in the ordinary course of business upon customary credit terms and sales
of scrap or obsolete material or equipment which are not material in the
aggregate, and shall not permit or suffer any Subsidiary to do any of the
foregoing; provided, however, that this subsection 5.2(h) shall not prohibit
any such sale, lease, license, transfer, assignment or other disposition
otherwise permitted pursuant to subsections 5.2(l) and (s), or if (i) the
aggregate book value (disregarding any write-downs of such book value other
than ordinary depreciation and amortization) of all of the business, assets,
rights, revenues and property disposed of after the Effective Date of this
Agreement (other than in reliance on clauses (ii) and (iii) below) shall be
less than 1% of the Total Assets at such time and if, immediately before and
after such transaction, no Unmatured Event or Event of Default shall exist or
shall have occurred and be continuing, (ii) sales of equipment as to which
proceeds are used within 180 days to purchase equipment of at least equivalent
value to those sold and if, immediately before and after such transaction, no
Unmatured Event or Event of Default shall exist or shall have occurred and be
continuing, (iii) sales as to which proceeds are used to make optional
prepayments on the Term Loan (if permitted) and Revolving Credit Advances,
provided that such prepayments on the Revolving Credit Advances shall also
permanently reduce the Revolving Commitments by the amount of

 

62

 

such payments,
(iv) investments which consist of transfers of assets instead of cash and which
are permitted by subsection 5.2(k) or (v) transfers of assets pursuant to a
loan or advance permitted pursuant to subsection 5.2(k); provided, however, in
the case of any of the foregoing permitted sales, leases, licenses, transfers,
assignments or other dispositions (each an “Asset Sale”) described in clauses
(i), (iii), (iv) the Company shall not, and shall not permit any of its
Subsidiaries to, consummate an Asset Sale unless (A) the Company (or the Subsidiary,
as the case may be) receives consideration at the time of such Asset Sale at
least equal to the fair market value (as determined by the Board of Directors
and evidenced by a resolution of the Board of Directors set forth in an
officer’s certificate delivered to the Agent) of the assets and (B) at least
90% of the consideration therefor received by the Company or such Subsidiary is
in the form of cash; provided that the amount of (x) any liabilities (as shown
on the Company’s or such Subsidiary’s most recent balance sheet), of the
Company or any Subsidiary that are assumed by the transferee of any such assets
such that the Company or such Subsidiary have no further liability and (y) any
securities, notes or other obligations received by the Company or any such
Subsidiary from such transferee that are converted by the Company or such
Subsidiary into cash (to the extent of the cash received), shall be deemed to
be cash for purposes of this provision and the definition of Net Cash Proceeds,
and (C) the Agent promptly shall obtain a first priority security interest in
any non-cash consideration for any Asset Sale.

 

(i)            Nature of Business.  Make or suffer any substantial change in the
nature of its business from that engaged in on the Effective Date or engage in
any other businesses other than those in which it is engaged on the Effective
Date.

 

(j)            Dividends and Other
Restricted Payments.  Make, pay,
declare or authorize any dividend, payment or other distribution in respect of
any class of its Capital Stock (including Preferred Stock) or any dividend,
payment or distribution in connection with the redemption, purchase, retirement
or other acquisition, directly or indirectly, of any shares of its Capital
Stock, other than such dividends, payments or other distributions made (i) to
the extent payable solely in shares of Capital Stock (other than Disqualified
Stock) of the Company, and(ii) as permitted pursuant to subsections 5.2(l) and
(s). The Company will not issue Disqualified Stock, except as permitted by
subsection 5.2(e).

 

(k)           Investments, Loans
and Advances.  Purchase or otherwise
acquire any Capital Stock of or other ownership interest in, or debt securities
of or other evidences of Indebtedness of, any other Person; nor make any loan
or advance of any of its funds or property or make any other extension of
credit to, or make any other investment or contribution or acquire any interest
whatsoever in, any other Person; nor incur any Contingent Liability except to
the extent permitted under subsection 5.2(e); nor permit any Subsidiary to do
any of the foregoing; other than (i) extensions of trade credit made in the
ordinary course of business on customary credit terms and commission,
relocation, travel and similar advances made to officers, employees and to
Shoreline Enterprises, LLC, a Delaware limited liability company (the majority
ownership of which is held by Myron C. Warshauer) (“Shoreline”), for consulting
services and reimbursable expenses, all in the ordinary course of business,
provided that advances to officers, employees and Shoreline for purposes other
than commission, relocation and travel shall not exceed $250,000 in aggregate
amount, (ii) investments in Cash Equivalents, (iii) those

 

63

 

investments,
loans, advances and other transactions described in Schedule 5.2(k)
hereto, having the same terms as existing on the date of this Agreement, but no
extension or renewal thereof shall be permitted, (iv) acquire and own stock,
obligations or securities received in settlement of debts owing to the Company
or its Subsidiaries or as consideration for Asset Sales otherwise permitted
under subsection 5.2(h), (v) Permitted Affiliate Loans, and (vi) other loans,
advances or investments (except to (1) Affiliates of the Company, or (2) the
Parent, the Principals, the Related Parties and their respective Affiliates) in
an aggregate amount not to exceed three percent (3%) of Total Assets, and (vii)
as otherwise permitted pursuant to subsections 5.2(l) and (s).

 

(l)            Transactions with
Affiliates.  Take any actions, nor
enter into any transactions, of the types described in subsections 5.2(e), (f),
(g), (h), (j), (k), (p) or (q), directly or indirectly, with, or for the
benefit of, any Affiliates of the Company, the Principals and/or the Related
Parties (each of the foregoing, an “Affiliate Transaction”) except as may
otherwise be specifically permitted by those sections, and except as follows:

 

(1)           transactions
between or among the Company and/or the Guarantors (except for the Parent)
shall be permitted;

 

(2)           the
Company or any Subsidiary may pay or issue to Parent or Affiliates such amounts
or dividends which in the aggregate do not exceed in any fiscal quarter an
amount equal to the lesser of $750,000 or an amount equal to 50% of the amount
of the Company’s Excess Cash Flow times one-fourth (collectively, the
“Affiliate Amount”); provided, that (i) such payments do not violate any
other terms or provisions of this Agreement, (ii) no Unmatured Event or Event
of Default exists or would be caused by any such payment; and (iii) the payment
of the Affiliate Amount shall begin for the fiscal quarter ending September 30,
2003, and any such payment may include payment of amounts of the Affiliate
Amount that have accrued, and remain unpaid, since March 31, 2002;

 

(3)           Intentionally
Omitted;

 

(4)           The
Company may use proceeds of the Term Loan equal to a maximum of the lesser of
(i) $2,425,000, or (ii) the actual purchase price of the Parent’s Senior
Discount Notes (which price shall include accrued interest) (the “Maximum Term
Loan Proceeds”) to redeem shares of Series C Preferred Stock owned by the
Parent, of which such Maximum Term Loan Proceeds the Parent must use, or return
to the Company, 100% within 180 days of the date of such Preferred Stock
redemption to, directly or indirectly, repurchase and retire a portion of the
Parent’s Senior Discount Notes; provided, however, that any amount of the
proceeds of the Term Loan used pursuant to this subsection 5.2(l)(4) that is in
excess of $1,000,000 shall reduce the amount of the proceeds of the Term Loan
available to be used pursuant to subsection 5.2(l)(5) on a dollar-for-dollar
basis;

 

64

 

(5)           the
Company may make Permitted Affiliate Loans;

 

(6)           any
Subsidiary may merge with or into another Subsidiary or into the Company,
provided that (i) there is no Unmatured Event or Event of Default either
existing before, or which would arise from, such merger, (ii) if any such
merger involves a Guarantor, the Guarantor shall be the surviving corporation,
(iii) if any such merger involves the Company, the Company shall be the
surviving corporation and (iv) if any such merger involves the Company or any
Guarantor, the net worth of the Company or such Guarantor involved in such
merger immediately after the merger would be equal to or greater than its net
worth immediately preceding such merger;

 

(7)           upon
notice to and consent of the Agent, any Subsidiary may merge with or into a
newly-created Subsidiary which is incorporated, formed or otherwise organized
pursuant to the laws of the State of Delaware, solely for the purpose of
re-organizing the previously existing Subsidiary under the laws of the State of
Delaware, provided that (i) there is no Unmatured Event or Event of Default
either existing before, or which would arise from, such merger, (ii) if any
such merger involves a Guarantor, the surviving Subsidiary shall become a
Guarantor, and the net worth of such surviving Subsidiary immediately after the
merger shall be equal to or greater than the Guarantor’s net worth immediately
preceding such merger, and (iii) all other terms and conditions of such merger
shall be acceptable to the Agent in its reasonable discretion;

 

(8)           transfers
of assets, including without limitation Capital Stock, between Guarantors
(other than the Parent) or between the Company and Guarantors (other than the
Parent) shall be permitted, provided that the Agent maintains its first
priority perfected Lien on any and all collateral security;

 

(9)           the
exchange of the 9 1⁄4% Notes for preferred securities that are not Disqualified
Stock (“Exchange Securities”), to the extent issuance of such Exchange
Securities is (i) approved by the Board of Directors, (ii) otherwise permitted
pursuant to the terms of this Agreement, and (iii) permitted pursuant to the
terms of the 9 1⁄4% Note Indenture and the 14% Note Indenture;

 

(10)         Affiliate
Transactions, Facility Management Agreements and Facility Leases entered into
in the ordinary course of business shall be permitted that are on terms that
are no less favorable to the Company or the relevant Subsidiary than those that
would have been obtained in a comparable transaction by the Company or such
Subsidiary with an unrelated Person;

 

65

 

(11)         the
Company may pay on behalf of, or make reimbursements to, the Parent not to
exceed (i) $300,000 in the aggregate for the fiscal year of the Company ending
December 31, 2003 (all of which have been made as of the Effective Date, and no
more of which may be made in calendar year 2003 from and after the Effective
Date), and (ii) $200,000 in the aggregate for any fiscal year of the Company
ending thereafter, for expenses incurred in the ordinary course of business by
the Parent for its own account or on behalf of the Company and/or the Company’s
Subsidiaries (including, without limitation, expenses for audit fees, tax
consulting, trustee fees, legal fees and bank fees);

 

(12)         the
Indebtedness of the Parent, the Principals and/or the Related Parties to the
Company outstanding on the Effective Date and described in Schedule
5.2(l)(12) hereto, but no increase in the amount thereof (as such amount is
reduced from time to time, and all amounts repaid shall not be reborrowed) and
no modifications of the terms thereof which are less favorable to the Company
or more restrictive on the Company in any material manner shall be permitted;
and

 

(13)         the
Company or any Guarantor (other than the Parent) may purchase or otherwise
acquire any Capital Stock of or other ownership interest in, or debt securities
of or other evidences of Indebtedness of, any Subsidiary or Joint Venture that
is not a Guarantor; or make any loan or advance of any of its funds or property
or make any other extension of credit to, or make any other investment or
contribution or acquire any interest whatsoever in, any Subsidiary or Joint
Venture that is not a Guarantor, not exceeding an aggregate amount equal to the
book value of 3% of Total Assets; provided, that any of the foregoing
transactions shall reduce, dollar for dollar, the available Indebtedness
permitted by subsection 5.2(e)(ix).

 

(m)          Inconsistent
Agreements.  Enter into any
agreement or permit or suffer any Subsidiary to enter into any agreement containing
any provision which would be violated or breached by this Agreement or any of
the transactions contemplated hereby or by performance by the Company or any of
its Subsidiaries of its obligations in connection therewith.

 

(n)           Negative Pledge
Limitation.  Enter into any
agreements (other than the Subordinated Debt Documents, the Security Documents
and any other agreement entered into in connection with any Joint Venture in
the ordinary course of the Company’s business prohibiting liens or security
interests on the Capital Stock of such Joint Venture and the assets of such
Joint Venture consistent with the terms of the Security Documents), including
without limitation any amendments to existing agreements, with any Person other
than the Lenders pursuant hereto which prohibits or limits the ability of the
Company or any Subsidiary to create, incur, assume or suffer to exist any Lien
upon any of its assets, rights, revenues or property, real, personal or mixed,
tangible or intangible, whether now owned or hereafter acquired.

 

66

 

(o)           Subsidiary Dividends.  Permit any of its Wholly-Owned Subsidiaries
directly or indirectly to create or otherwise cause or suffer to exist or
become effective any consensual encumbrance or restriction which by its terms
materially restricts the ability of any such Subsidiary to (i) pay dividends or
make any other distributions on such Subsidiary’s capital stock, (ii) pay any
Indebtedness owed to the Company or any Guarantors, (iii) make any loans or
advances to the Company or any Guarantors or (iv) transfer any material portion
of its assets to the Company or any Guarantors.

 

(p)           Payments and
Modification of Debt.  Make, or
permit any Subsidiary to make, any optional payment, defeasance (whether a
covenant defeasance, legal defeasance or other defeasance), prepayment or
redemption of any of its or any of its Subsidiaries’ Subordinated Debt or other
Indebtedness or Preferred Stock (except for payments made in Capital Stock
which could not create an Event of Default, and except for Ordinary Course
Lease Termination Payments); or amend or modify, or consent or agree to any
amendment or modification of, any instrument or agreement under which any of
its Subordinated Debt is issued or created or otherwise related thereto; or
amend or modify the Preferred Stock in any respect which could be materially
adverse to the Lenders, or which could cause the Preferred Stock to become
Disqualified Stock, or consent or agree to any such amendment or modification
of, any instrument or agreement under which the Preferred Stock is issued or
created or otherwise related thereto; or enter into any agreement or
arrangement providing for any defeasance of any kind of any of its Subordinated
Debt, or designate any Indebtedness (other than the Lender Indebtedness) as
“Designated Senior Debt” as defined in and pursuant to the Subordinated Debt
Documents; except as may otherwise be permitted pursuant to subsections 5.2(l)
and (s).  Notwithstanding the foregoing,
the Company may from time to time use the Term Loan proceeds to purchase a
portion of its 14% Notes , in amounts, and upon terms and conditions, approved
by the Required Lenders in writing.

 

(q)           Management Fees.  Pay, or permit any Subsidiary to pay,
directly or indirectly, any management, consulting, investment banking,
advisory or other fees or payments or any other payments (including, without
limitation, any amounts paid or payable by the Company or any of its
Subsidiaries to the Parent in respect of overhead expense allocations among
members of the affiliate corporate group) to the Parent or any Affiliates
thereof, or any Affiliates of the Company or the Principals or Related Parties,
except as may otherwise be permitted pursuant to subsections 5.2(l) and (s).  In addition to the foregoing, the Company
also will not pay, or permit any Subsidiary or, to the extent the Company is
able to do so, any other Affiliate of the Company, to pay, directly or
indirectly, any management, consulting, investment banking, advisory or other
fees or payments under any leases, any expense reimbursement or similar
payments or any other payments of any kind (including, without limitation, any
amounts paid or payable by the Company or any of its Subsidiaries to Steamboat
in respect of overhead expense allocations among members of the affiliate
corporate group) to Steamboat, Holberg or any Affiliates thereof other than the
Company or any Guarantor (other than Parent), except as may otherwise be
permitted by subsections 5.2(l) and (s).

 

(r)            Net Capital
Expenditures.  Make, or permit any
Subsidiary to make, Net Capital Expenditures (minus the amount of any Ordinary
Course Capital Leases used to finance

 

67

 

such Net Capital
Expenditures, such resulting amount referred to in this section as “Adjusted
Net Capital Expenditures”) that
exceed in any fiscal year in the aggregate for the Company and its Subsidiaries
25% of the Adjusted EBITDA for such fiscal year, plus in each case, (i) the
amount by which the allowed Adjusted Net Capital Expenditures for the most
recently ended fiscal year exceeded the actual Adjusted Net Capital
Expenditures for such fiscal year and (ii) an amount, not to exceed $2,000,000,
of the allowed Adjusted Net Capital Expenditures for the following fiscal year
(subject to the permitted Adjusted Net Capital Expenditures for such following
year being reduced by the amount used and allowed under this clause (ii)).

 

(s)           Additional Limitations on
Transactions with Affiliates.  Notwithstanding anything to the
contrary in this Agreement (including, without limitation, any of the
transactions permitted by Section 5.2), from and after the occurrence of an
Event of Default or Unmatured Event, the Company shall not and shall not permit
any of its Subsidiaries to, directly or indirectly, make any payment to or
sell, lease, transfer or otherwise dispose of its properties or assets to, or
enter into or make or amend any such transaction (in such forms as may include,
without limitation, any contract, agreement, understanding, investment, loan,
advance or guarantee) with, or for the benefit of, any direct or indirect
holder or holders of any of the Capital Stock of the Company, or with, or for
the benefit of, any other Affiliate of the Company which is not its Subsidiary
or Joint Venture (including, without limitation, the Principals, the Related
Parties, Steamboat and Parent), except for Facility Management Agreements and
Facility Leases entered into in the ordinary course of business that are on
terms that are no less favorable to the Company or the relevant Subsidiary than
those that would have been obtained in a comparable transaction by the Company
or such Subsidiary with an unrelated Person.

 

(t)            ERISA
Matters.  For itself, any
Subsidiary or any ERISA Affiliate, suffer or permit any of the following that
could result in or constitute a Material Adverse Effect: (i) termination of any
Plan; (ii) permit to exist any Reportable Event or any other event or condition
with respect to any Plan (iii) make a complete or partial withdrawal from any
Multiemployer Plan; (iv) enter into any new Plan or modify any existing Plan so
as to increase liability of the Company, a Subsidiary or an ERISA Affiliate; or
(iv) permit the present value of all nonforfeitable accrued benefits under any
Plan (using the actuarial assumptions utilized by the PBGC upon termination of
a pension plan) to exceed the fair market value of the Plan’s assets allocable
to such benefits, all as determined as of the most recent valuation date for
each such Plan.

 

(u)           Minimum
Adjusted EBITDA.  Permit or
suffer Adjusted EBITDA to be less than the levels set forth in the following
table as of the dates shown for the four quarters then ending:

 

	
  Date of
  Measurement

  	
   

  	
  Minimum Adjusted EBITDA

  	
   

  
	
  September 30, 2003

  	
   

  	
  $

  	
  20,275,000

  	
   

  
	
  December 31, 2003

  	
   

  	
  21,154,000

  	
   

  
	
  March 31, 2004

  	
   

  	
  21,154,000

  	
   

  
	
  June 30, 2004

  	
   

  	
  21,154,000

  	
   

  
	
  September 30, 2004

  	
   

  	
  21,154,000

  	
   

  
	
  December 31, 2004

  	
   

  	
  23,044,000

  	
   

  
	
  March 31, 2005

  	
   

  	
  23,044,000

  	
   

  
	
  June 30, 2005

  	
   

  	
  23,044,000

  	
   

  
	
  September 30, 2005

  	
   

  	
  23,044,000

  	
   

  
	
  December 31, 2005

  	
   

  	
  25,035,000

  	
   

  
	
  March 31, 2006

  	
   

  	
  25,035,000

  	
   

  
	
  June 30, 2006

  	
   

  	
  25,035,000

  	
   

  
					

 

68

 

(v)           Additional
Covenants.  If at any time the
Company shall enter into or be a party to any instrument or agreement with
respect to any Indebtedness (covered under clause (a) in the definition of
“Indebtedness”) and with respect to Adjusted Off-Balance Sheet Liabilities,
which in the aggregate, together with any related Indebtedness (covered under
clause (a) in the definition of “Indebtedness”) and any Adjusted Off-Balance
Sheet Liabilities, exceeds $5,000,000, including all such instruments or
agreements in existence as of the date hereof and all such instruments or
agreements entered into after the date hereof to the extent permitted by
subsection 5.1(d), relating to or amending any terms or conditions applicable
to any of such Indebtedness which includes covenants, terms, conditions or
defaults not substantially provided for in this Agreement or more favorable to
the lender or lenders thereunder than those provided for in this Agreement,
then the Company shall promptly so advise the Agent and the Lenders.  Thereupon, if the Agent shall request, upon
notice to the Company, the Agent and the Lenders shall enter into an amendment
to this Agreement or an additional agreement (as the Agent may request),
providing for substantially the same covenants, terms, conditions and defaults
as those provided for in such instrument or agreement to the extent required
and as may be selected by the Agent.  In
addition to the foregoing, any covenants, terms, conditions or defaults in
Subordinated Debt Documents or Preferred Stock Documents not substantially
provided for in this Agreement or more favorable to the holders of Subordinated
Debt or Preferred Stock issued in connection therewith are hereby incorporated
by reference into this Agreement to the same extent as if set forth fully
herein, and no subsequent amendment, waiver, termination or modification
thereof shall effect any such covenants, terms, conditions or defaults as
incorporated herein other than as permitted pursuant to subsection 5.2(p).

 

ARTICLE VI

 

DEFAULT

 

6.1           Events of
Default.  The occurrence of any
one of the following events or conditions shall be deemed an “Event of Default”
hereunder unless waived by the requisite Lenders pursuant to Section 8.1:

 

(a)           Nonpayment.  The Company shall fail to pay when due any
principal or interest of the Loans, or any reimbursement obligation under
Section 3.3 (whether by deemed disbursement of a Revolving Credit Loan or
otherwise), or any fees or any other amount payable hereunder;

 

69

 

(b)           Misrepresentation.  Any representation or warranty made by the
Company or any Guarantor in any Loan Document or any other certificate, report,
financial statement or other document furnished by or on behalf of the Company
or any Guarantor in connection with this Agreement, shall prove to have been
incorrect when made or deemed made;

 

(c)           Certain Covenants.  The Company or any Guarantor shall fail to
perform or observe any term, covenant or agreement contained in subsections
5.1(e) through (g), or 5.2 hereof;

 

(d)           Other Defaults.  The Company or any Guarantor shall fail to
perform or observe any other term, covenant or agreement contained in any Loan
Document to which it is a party (other than those described in subsections
6.1(a) or 6.1(c), and any such failure shall remain unremedied for 20 calendar
days after the occurrence of such failure (or such longer or shorter period of
time as may be specified in such Loan Document);

 

(e)           Other Indebtedness.  The Company or any of its Subsidiaries or
any Guarantor (other than the Parent) shall fail to pay any part of the principal
of, the premium, if any, or the interest on, or any other payment of money due
under any of its Indebtedness (other than (i) Indebtedness hereunder, (ii)
Indebtedness of APCOA-Atrium Parking Venture L.P., an Ohio limited partnership
(“Atrium”), with respect to its obligations to the holders of its Ten-Year
Debentures bearing interest at a rate of 12% per annum, issued in original
principal amount of $1,775,000 pursuant to the terms of a Confidential Private
Placement memorandum dated May 24, 1995, and (iii) other non-recourse
Indebtedness of the Company or any of its Subsidiaries or any Guarantor as the
Agent shall consent, such consent not to be unreasonably withheld), beyond any
period of grace provided with respect thereto, which individually or together
with other such Indebtedness as to which any such failure exists has an
aggregate outstanding principal amount in excess of $750,000; or the Company or
any of its Subsidiaries or any Guarantor (other than the Parent) shall fail to
perform or observe any other term, covenant or agreement contained in any
agreement, document or instrument evidencing or securing any such Indebtedness
having such aggregate outstanding principal amount, or under which any such
Indebtedness was issued or created, beyond any period of grace, if any,
provided with respect thereto if the effect of such failure is either (i) to
cause or permit the holders of such Indebtedness (or a trustee on behalf of
such holders) to cause, any payment in respect of such Indebtedness to become
due prior to its due date or (ii) to permit the holders of such Indebtedness
(or a trustee on behalf of such holders) to elect a majority of the board of
directors of the Company or the Parent; provided, however, that
with respect to the Parent, the Parent shall fail to pay any part of the
principal of, the premium, if any, or the interest on, or any other payment of
money due under any of such Indebtedness, beyond any period of grace provided
with respect thereto, if the effect of such failure is to cause the holders of
such Indebtedness (or a trustee on behalf of such holders) to cause any payment
in respect of such Indebtedness to become due prior to its due date;

 

(f)            Judgments.  One or more judgments or orders for the
payment of money (not fully paid or covered without dispute by insurance) in an
aggregate amount of $750,000 in any fiscal year shall be rendered against the
Company or any of its Subsidiaries or any Guarantor, or any other judgment or
order (whether or not for the payment of money) shall be 

 

70

 

rendered against
or shall affect the Company or any of its Subsidiaries or any Guarantor which
causes or could reasonably be expected to cause a Material Adverse Effect, and
either (i) such judgment or order shall have remained unsatisfied and the
Company or such Subsidiary or Guarantor shall not have taken action necessary
to stay enforcement thereof by reason of pending appeal or otherwise, prior to
the expiration of the applicable period of limitations for taking such action
or, if such action shall have been taken, a final order denying such stay shall
have been rendered, or (ii) enforcement proceedings shall have been commenced
by any creditor upon any such judgment or order;

 

(g)           ERISA.  Any of the following (i) the occurrence of a
Reportable Event that results in liability of the Company, any Subsidiary or
Guarantor or any ERISA Affiliate to the PBGC or to any Plan and such Reportable
Event is not corrected within thirty (30) days after the occurrence thereof;
(ii) the occurrence of any Reportable Event which could constitute grounds for
termination of any Plan by the PBGC or for the appointment by the appropriate
United States District Court of a trustee to administer any Plan and such Reportable
Event is not corrected within thirty (30) days after the occurrence thereof;
(iii) the filing by the Company, any Subsidiary or Guarantor or any ERISA
Affiliate of a notice of intent to terminate a Plan or the institution of other
proceedings to terminate a Plan; (iv) the Company, any Subsidiary or Guarantor
or any ERISA Affiliate shall fail to pay when due any liability to the PBGC or
to a Plan; (v) the PBGC shall have instituted proceedings to terminate, or to
cause a trustee to be appointed to administer, any Plan; (vi) any Person
engages in a Prohibited Transaction with respect to any Plan which results in
liability of the Company, any Subsidiary or Guarantor, or any ERISA
Affiliate;  (vii) there shall occur a
complete or partial withdrawal from, or a default within the meaning of Section
4219(c)(5) of ERISA with respect to one or more Multiemployer Plans which could
cause the Company, any Subsidiary or Guarantor or any ERISA Affiliate to incur
a current payment obligation; (viii) the Company, any Subsidiary or Guarantor
or any ERISA Affiliate shall fail to make a required installment or other
payment to any Plan within the meaning of Section 302(f) of ERISA or Section
412(n) of the Code that results in or could result in liability of the Company,
any Subsidiary of the Company or any ERISA Affiliate to the PBGC or any Plan;
(ix) the withdrawal of the Company, any of its Subsidiaries or any ERISA
Affiliate from a Plan during a plan year in which it was a “substantial
employer” as defined in Section 4001(a)(2) of ERISA; or (x) the Company, any of
its Subsidiaries or any ERISA Affiliate becomes an employer with respect to any
Multiemployer Plan without the prior written consent of the Required Lenders;
provided, however, that the aggregate liability caused by any of the foregoing
exceeds $1,000,000;

 

(h)           Insolvency, Etc.  The Company, any Subsidiary or any Guarantor
shall be dissolved or liquidated or any judgment, order or decree therefor
shall be entered (other than dissolutions or liquidations of Subsidiaries
permitted by subsections 5.1(a) and 5.2(g), (l) and (s)), or shall generally
not pay its debts as they become due, or
shall admit in writing its inability to pay its debts generally, or shall make
a general assignment for the benefit of creditors, or shall institute, or there
shall be instituted against the Company, any Subsidiary or any Guarantor, any
proceeding or case seeking to adjudicate it a bankrupt or insolvent or seeking
liquidation, winding up, reorganization, arrangement, adjustment, protection,
relief or composition of it or its debts under any law relating to bankruptcy,
insolvency or reorganization or relief or protection of 

 

71

 

debtors or seeking
the entry of an order for relief, or the appointment of a receiver, trustee,
custodian or other similar official for it or for any substantial part of its
assets, rights, revenues or property, and, if such proceeding is instituted
against the Company or such Subsidiary or such Guarantor, such proceeding shall
remain undismissed or unstayed for a period of 60 days; or the Company or any
Subsidiary or any Guarantor shall take any action (corporate or other) to
authorize or further any of the actions described above in this section;

 

(i)            Other Documents.  Any material provision of any Loan Document
or any subordination provision of any Subordinated Debt Document shall at any
time for any reason cease to be valid and binding and enforceable against any
obligor thereunder, or the validity, binding effect or enforceability thereof
shall be contested by any Person or any obligor, shall deny that it has any or
further liability or obligation thereunder, or any Loan Document or any
subordination provision of any Subordinated Debt Document shall be terminated,
invalidated or set aside, or be declared ineffective or inoperative or in any
way cease to give or provide to the Lenders and the Agent the benefits
purported to be created thereby in any material manner;

 

(j)            Orders, Permits, Etc.  The Company or any of its Subsidiaries shall
be enjoined, restrained or in any way prevented by the order of any court or
any administrative or regulatory agency from conducting any material part of
its business and such order shall continue in effect for more than thirty (30)
days, or there shall occur the loss, suspension or revocation of, or failure to
renew, any license or permit now held or hereafter acquired by the Company or
any of its Subsidiaries if such loss, suspension, revocation or failure to
renew has or could reasonably be expected to have a Material Adverse Effect;

 

(k)           Control.  Any Change of Control shall occur;

 

(l)            Parent Indebtedness. The
certification to be provided by the Parent in accordance with subsection 2.5(m)
(whether on the Closing Date or at any time thereafter with respect to new
Indebtedness) shall fail to be correct in all material respects, or the Parent
shall fail to certify to the Agent as required by subsection 2.5(m) at any time
after the Closing Date with respect to any new Indebtedness; or

 

(m)          Material
Adverse Changes.  The Company
shall lose the benefit of any contract or agreement with any customer, vendor
or other Person, including without limitation, any Facility Lease or Facility
Management Agreement, which shall result in a Material Adverse Effect in the
Agent’s reasonable discretion, or there shall be a change in the senior
management of the Company which shall result in a Material Adverse Effect in
the Agent’s reasonable discretion, or there shall be any other occurrence or
non-occurrence which, in the Agent’s reasonable discretion, shall result in a
Material Adverse Effect.

 

6.2           Remedies.

 

(a)           Upon the occurrence and during the
continuance of any Event of Default, by notice to the Company (i) the Agent
may, and upon being directed to do so by the Required Revolving Lenders shall,
terminate the Revolving Commitments or (ii) the Agent may, and upon 

 

72

 

being directed to
do so by the Required Lenders, shall declare the outstanding principal of, and
accrued interest on, the Loans, all unpaid reimbursement obligations in respect
of drawings under Letters of Credit and all other amounts owing under this
Agreement to be immediately due and payable, or (iii) the Agent may, and upon
being directed to do so, subject to the terms and conditions of the Bank
Subordination Agreement, by the Required Term Loan Lenders, shall declare the
outstanding principal of, and accrued interest on, the Term Loan, and all other
amounts owing to the Term Loan Lenders under this Agreement, to be immediately
due and payable, or (iv) the Agent may, and upon being directed to do so by the
Required Revolving Lenders, shall declare the outstanding principal of, and
accrued interest on, the Revolving Credit Loans, and all other amounts owing to
the Revolving Lenders under this Agreement, to be immediately due and payable,
or (v) the Agent may, and upon being directed to do so by LaSalle and the
Required Revolving Lenders, shall demand immediate delivery of cash collateral,
and the Company agrees to deliver such cash collateral upon demand, in an
amount equal to the maximum amount that may be available to be drawn at any
time prior to the stated expiry of all outstanding Letters of Credit, or any
one or more of the foregoing, whereupon the Revolving Commitments shall
terminate forthwith and all such amounts, including all Loans and such cash
collateral, shall become immediately due and payable, as the case may be
(provided that in the case of any event or condition described in subsection
6.1(h), the Revolving Commitments shall automatically terminate forthwith and
all such amounts, including such cash collateral, shall automatically become
immediately due and payable without notice), in all cases without demand,
presentment, protest, diligence, notice of dishonor or other formality, all of
which are hereby expressly waived.  Such
cash collateral delivered in respect of outstanding Letters of Credit shall be
deposited in a special cash collateral account to be held by the Agent as
collateral security for the payment and performance of the Company’s
obligations under this Agreement to the Lenders and the Agent.

 

(b)           The Agent may and, upon being
directed to do so by the Required Lenders, shall, in addition to the remedies
provided in subsection 6.2(a), exercise and enforce any and all other rights
and remedies available to it or the Lenders, whether arising under this
Agreement or any Loan Document or under applicable law, in any manner deemed
appropriate by the Agent, including suit in equity, action at law, or other
appropriate proceedings, whether for the specific performance (to the extent
permitted by law) of any covenant or agreement contained in any other Loan
Document or in aid of the exercise of any power granted in any Loan Document.

 

(c)           Upon the occurrence and during the
continuance of any Event of Default, the Agent and each Lender may, subject to
Section 7.10, at any time and from time to time, without notice to the Company
(any requirement for such notice being expressly waived by the Company) set off
and apply against any and all of the obligations of the Company now or
hereafter existing under this Agreement, whether owing to such Lender or any
other Lender or the Agent, any and all deposits (general or special, time or
demand, provisional or final) at any time held and other indebtedness at any
time owing by the Agent or such Lender or any Affiliate of the Agent or such
Lender to or for the credit or the account of the Company and any property of
the Company from time to time in possession of the Agent or such Lender,
irrespective of whether or not the Agent or such Lender shall have made any
demand hereunder and although 

 

73

 

such obligations
may be contingent and unmatured.  The
Company hereby grants to the Lenders and the Agent a lien on and security
interest in all such deposits, indebtedness and property as collateral security
for the payment and performance of the obligations of the Company under this
Agreement.  The rights of each Lender
and the Agent under this subsection 6.2(c) are in addition to other rights and
remedies (including, without limitation, other rights of setoff) which the
Agent or each such Lender may have.

 

6.3           Distribution of Proceeds of Collateral.  All proceeds of any realization on the
collateral pursuant to the Security Documents and any payments received by the
Agent or any Lender pursuant to the Guaranties after the Loans become due and
payable (whether by acceleration or otherwise), shall be allocated and
distributed by the Agent as follows:

 

(a)           First, to the payment of all
reasonable costs and expenses, including without limitation all reasonable
attorneys’ fees, of the Agent in connection with the enforcement of the
Security Documents and otherwise administering this Agreement;

 

(b)           Second, to the payment of all fees
required to be paid under any Loan Document including commitment fees, owing to
the Agent and the Revolving Lenders on a pro rata basis in accordance with the
Lender Indebtedness consisting of fees owing to the Agent and the Revolving
Lenders, for application to payment of such liabilities;

 

(c)           Third, to the payment of Lender
Indebtedness consisting of interest owing to the Revolving Lenders, and
obligations and liabilities relating to Swaps owing to the Revolving Lenders
for application to payment of such liabilities;

 

(d)           Fourth, to the Revolving Lenders and
the Agent on a pro rata basis in accordance with the Lender Indebtedness
consisting of principal of Revolving Credit Advances (including without
limitation any cash collateral for any outstanding letters of credit), for
application to payment of such liabilities;

 

(e)           Fifth, to the payment of any and all
other amounts owing to the Revolving Lenders and the Agent on a pro rata basis
in accordance with the total amount of such Indebtedness owing to each of the
Revolving Lenders and the Agent, for application to payment of such
liabilities; and

 

(f)            Sixth, to the payment of all fees
required to be paid under any Loan Document, owing to the Lenders holding a
portion of the Term Loan on a pro rata basis in accordance with the Lender
Indebtedness consisting of fees owing to the Lenders holding a portion of the
Term Loan, for application to payment of such liabilities;

 

(g)           Seventh, to the Agent for the benefit
of the Lenders holding a portion of the Term Loan on a pro rata basis in
accordance with the Lender Indebtedness consisting of interest owing to each of
such Lenders holding a portion of the Term Loan, and obligations and liabilities
relating to Swaps owing to the Lenders holding a portion of the Term Loan for
application to payment of such liabilities;

 

74

 

(h)           Eighth, to the Lenders holding a
portion of the Term Loan on a pro rata basis in accordance with the Lender
Indebtedness consisting of principal of the Term Loan, for application to
payment of such liabilities;

 

(i)            Ninth, to the payment of any and all
other amounts owing to the Lenders holding a portion of the Term Loan on a pro
rata basis in accordance with the total amount of such Indebtedness owing to
each of such Lenders, for application to payment of such liabilities; and

 

(j)            Tenth, to the Company, its
Subsidiaries or such other Person as may be legally entitled thereto.

 

Notwithstanding the foregoing, no payments of
principal, interest or fees delivered to the Agent for the account of any
Defaulting Lender shall be delivered by the Agent to such Defaulting
Lender.  Instead, such payments shall,
for so long as such Defaulting Lender shall be a Defaulting Lender, be held by
the Agent, and the Agent is hereby authorized and directed by all parties
hereto to hold such funds in escrow and apply such funds as follows:

 

(i)            First,
if applicable to any payments due from such Defaulting Lender to the Agent, and

 

(ii)           Second,
to purchase participations in Loans required to be made by such Defaulting
Lender to the extent such Defaulting Lender failed to make such Loans.

 

Notwithstanding the foregoing, upon the
termination of all Commitments and the payment and performance of all the Loans
and other obligations owing to the Agent and the Lenders hereunder (other than
those owing to a Defaulting Lender), any funds then held in escrow by the Agent
pursuant to the preceding paragraph shall be distributed to each Defaulting
Lender, pro rata in proportion to amounts that would be due to each Defaulting
Lender but for the fact that it is a Defaulting Lender.

 

6.4           Letter
of Credit Liabilities.  For the
purposes of payments and distributions under Section 6.3, the full amount of
Lender Indebtedness on account of any Letter of Credit then outstanding but not drawn upon shall be deemed to be then
due and owing.  Amounts distributable to
the Lenders, Agent on account of such Lender Indebtedness under such Letters of
Credit shall be deposited in a separate collateral account in the name of and
under the control of the Agent and held by the Agent first as security for such
Letter of Credit Lender Indebtedness and then as security for all other Lender
Indebtedness and the amount so deposited shall be applied to the Letter of
Credit Lender Indebtedness at such times and to the extent that such Letter of
Credit Lender Indebtedness become absolute liabilities and if and to the extent
that the Letter of Credit Lender Indebtedness fails to become absolute Lender
Indebtedness because of the expiration or termination of the underlying Letters
of Credit without being drawn upon then such amounts shall be applied to the
remaining Lender Indebtedness in the order provided in Section 6.3.  The Company hereby grants to the Agent, for
the benefit of the Lenders and Agent, 

 

75

 

a lien and
security interest in all such funds, as security for all the Lender Indebtedness
as set forth above.

 

ARTICLE VII

 

THE AGENT AND THE LENDERS

 

7.1           Appointment: Nature of Relationship.  Effective upon the Effective Date, each of
the Lenders irrevocably authorizes LaSalle as the Agent to act as the
contractual representative of each such Lender thereafter with the rights and
duties expressly set forth herein and in the other Loan Documents.  LaSalle, as the Agent, agrees to act as such
contractual representative upon the express conditions contained in this
Article VII.  Notwithstanding the use of
the defined term “Agent,” it is expressly understood and agreed that the Agent
shall not have any fiduciary responsibilities to any Lender by reason of this
Agreement or any other Loan Document and that the Agent is merely acting as the
representative of the Lenders with only those duties as are expressly set forth
in this Agreement and the other Loan Documents.  In its capacity as the Lenders’ contractual representative, the
Agent (i) does not hereby assume any fiduciary duties to any of the Lenders,
(ii) is a “representative” of the Lenders within the meaning of § 9-102 of the
Uniform Commercial Code and (iii) is acting as an independent contractor, the
rights and duties of which are limited to those expressly set forth in this
Agreement and the other Loan Documents. 
Each of the Lenders hereby agrees to assert no claim against the Agent
on any agency theory or any other theory of liability for breach of fiduciary
duty, all of which claims each Lender hereby waives.

 

7.2           Powers.  The Agent shall have and may exercise such
powers under the Loan Documents as are specifically delegated to the Agent by
the terms of each thereof, together with such powers as are reasonably
incidental thereto.  The Agent shall
have no implied duties to the Lenders, or any obligation to the Lenders to take
any action thereunder except any action specifically provided by the Loan
Documents to be taken by the Agent.

 

7.3           General
Immunity.  Neither the Agent nor
any of its directors, officers, agents or employees shall be liable to the
Company or any of its Subsidiaries, the Lenders or any Lender for any action
taken or omitted to be taken by it or them hereunder or under any other Loan
Document or in connection herewith or therewith except for its or their own
gross negligence or willful misconduct.

 

7.4           No
Responsibility for Loans, Recitals, etc.  Neither the Agent nor any of its directors,
officers, agents or employees shall be responsible for or have any duty to
ascertain, inquire into, or verify (i) any statement, warranty or
representation made in connection with any Loan Document or any Borrowing
hereunder; (ii) the performance or observance of any of the covenants or
agreements of any obligor under any Loan Document, including, without
limitation, any agreement by an obligor to furnish information directly to each
Lender; (iii) the satisfaction of any condition specified in Article II, except
receipt of items required to be delivered to the Agent; (iv) the validity,
enforceability, effectiveness, sufficiency or genuineness of any Loan Document
or any other instrument or writing furnished in connection therewith; or (v)
the value, 

 

76

 

sufficiency,
creation, perfection or priority of any interest in any collateral security.  The Agent shall have no duty to disclose to
the Lenders information that is not required to be furnished by the Company or
any Subsidiary to the Agent at such time, but is voluntarily furnished by the
Company or any Subsidiary to the Agent (either in its capacity as Agent or in
its individual capacity).

 

7.5           Action on Instructions of Lenders.  The Agent shall in all cases be fully
protected in acting, or in refraining from acting, hereunder and under any
other Loan Document in accordance with written instructions signed by the
Lenders, the Required Lenders, the Required Revolving Lenders or the Required
Term Loan Lenders, as the case may be, and such instructions and any action
taken or failure to act pursuant thereto shall be binding on all of the Lenders
and on all holders of Notes.  The
Lenders hereby acknowledge that the Agent shall be under no duty to take any
discretionary action permitted to be taken by it pursuant to the provisions of
this Agreement or any other Loan Document unless it shall be requested in
writing to do so by the Lenders, the Required Lenders, the Required Revolving
Lenders or the Required Term Loan Lenders, as the case may be.

 

7.6           Employment
of Agents and Counsel.  The
Agent may execute any of its duties as Agent hereunder and under any other Loan
Document by or through employees, agents, and attorneys-in-fact and shall not
be answerable to the Lenders, except as to money or securities received by it
or its authorized agents, for the default or misconduct of any such agents or attorneys-in-fact
selected by it with reasonable care. 
The Agent shall be entitled to rely on advice of counsel concerning all
matters pertaining to the agency hereby created and its duties hereunder and
under any other Loan Document.

 

7.7           Reliance
on Documents; Counsel.  The
Agent shall be entitled to rely upon any Note, notice, consent, certificate,
affidavit, letter, telegram, statement, paper or document believed by it to be
genuine and correct and to have been signed or sent by the proper person or persons,
and, in respect to legal matters, upon the opinion of counsel selected by the
Agent, which counsel may be employees of the Agent.

 

7.8           Agent’s Reimbursement and
Indemnification.  The Lenders
agree to reimburse and indemnify the Agent ratably in proportion to their
respective Commitments (or, if the Commitments have been terminated, in
proportion to their Commitments immediately prior to such termination) (i) for
any amounts not reimbursed by the Company for which the Agent is entitled to
reimbursement by the Company under the Loan Documents, (ii) for any other
expenses incurred by the Agent on behalf of the Lenders, in connection with the
preparation, execution, delivery, administration and enforcement of the Loan
Documents and (iii) for any liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind and nature whatsoever which may be imposed on, incurred by or asserted
against the Agent in any way relating to or arising out of the Loan Documents
or any other document delivered in connection therewith or the transactions
contemplated thereby, or the enforcement of any of the terms thereof or of any
such other documents, provided that no Lender shall be liable for any of the
foregoing to the extent they arise from the gross negligence 

 

77

 

or willful
misconduct of the Agent.  The
obligations of the Lenders under this Section 7.8 shall survive payment of the
Lender Indebtedness and termination of this Agreement.

 

7.9           Notice of
Default.  The Agent shall not be
deemed to have knowledge or notice of the occurrence of any Unmatured Event or
Event of Default hereunder unless the Agent has received written notice from a
Lender or the Company referring to this Agreement describing such Event of
Default or Unmatured Event and stating that such notice is a “notice of
default”.  In the event that the Agent
receives such a notice, the Agent shall give prompt notice thereof to the
Lenders.

 

7.10         Rights as a
Lender.  In the event the Agent
is a Lender, the Agent shall have the same rights and powers hereunder and
under any other Loan Document as any Lender and may exercise the same as though
it were not the Agent, and the term “Lender” or “Lenders” shall, at any time
when the Agent is a Lender, unless the context otherwise indicates, include the
Agent in its individual capacity.  The
Agent may accept deposits from, lend money to, and generally engage in any kind
of trust, debt, equity or other transaction, in addition to those contemplated
by this Agreement or any other Loan Document, with the Company or any of its
Subsidiaries in which the Company or such Subsidiary is not restricted hereby
from engaging with any other Person. 
The Agent, in its individual capacity, is not, subject to Section 8.6,
obligated to remain a Lender.

 

7.11         Lender
Credit Decision.  Each Lender
acknowledges that it has, independently and without reliance upon the Agent or
any other Lender and based on the financial statements prepared by the Company
and such other documents and information as it has deemed appropriate, made its
own credit analysis and decision to enter into this Agreement and the other
Loan Documents.  Each Lender also
acknowledges that it will, independently and without reliance upon the 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 decisions in taking or
not taking action under this Agreement and the other Loan Documents.

 

7.12         Successor
Agent.  The Agent may resign at
any time by giving written notice thereof to the Lenders and the Company, such
resignation to be effective upon the appointment of a successor Agent or, if no
successor Agent has been appointed, forty-five (45) days after the retiring
Agent gives notice of its intention to resign. 
Upon any such resignation, the Required Lenders shall have the right to
appoint, on behalf of the Company and the Lenders, a successor Agent.  If no successor Agent shall have been so
appointed by the Required Lenders within thirty (30) days after the resigning
Agent’s giving notice of its intention to resign, then the resigning Agent may
appoint, on behalf of the Company and the Lenders, a successor Agent.  If the Agent has resigned and no successor
Agent has been appointed, the Lenders may perform all the duties of the Agent
hereunder and the Company shall make all payments in respect of the Lender
Indebtedness to the applicable Lender and for all other purposes shall deal
directly with the Lenders.  No successor
Agent shall be deemed to be appointed hereunder until such successor Agent has
accepted the appointment.  Any such
successor Agent shall be a commercial bank having capital and retained earnings
of at least $500,000,000.  Upon the
acceptance of any appointment as Agent hereunder by a successor Agent, such
successor Agent shall thereupon 

 

78

 

succeed to and
become vested with all the rights, powers, privileges and duties of the
resigning Agent.  Upon the effectiveness
of the resignation of the Agent, the resigning Agent shall be discharged from
its duties and obligations hereunder and under the Loan Documents.  After the effectiveness of the resignation
of an Agent, the provisions of this Article VII shall continue in effect for
the benefit of such Agent in respect of any actions taken or omitted to be
taken by it while it was acting as the Agent hereunder and under the other Loan
Documents.

 

7.13         Collateral
Management.  The Agent is hereby
authorized on behalf of all of the Lenders, without the necessity of any
further consent from any Lender, from time to time prior to an Event of
Default, to take any action with respect to the collateral or the Security
Documents which may be necessary (i) to perfect and maintain perfected the
security interest in and liens upon the collateral granted pursuant to the
Security Documents, and (ii) to release portions of the collateral from the
security interests and liens imposed by the Security Documents in connection
with any dispositions of such portions of the collateral permitted hereby.  In the event that the Company or the
Guarantors desire to sell or otherwise dispose of any assets and such sale or disposition
is permitted hereby, the Agent shall, upon timely notice from the Company,
release such portions of the collateral from the security interests and liens
imposed by the Security Documents as may be specified by the Company or the
Guarantors in order for the Borrower or the Guarantors to consummate such
proposed sale or disposition, provided that at or prior to the time of such
proposed sale or disposition no Unmatured Event or Event of Default shall have
occurred and be continuing, including, without limitation, any Unmatured Event
or Event of Default that would arise upon consummation of such sale or
disposition.  For purposes of the
preceding sentence, the Company shall give timely notice if, not less than five
(5) Business Days prior to the date of such proposed sale or disposition, it
shall furnish to the Agent an officers’ certificate setting forth in reasonable
detail the circumstances of such proposed sale or disposition.

 

7.14         Right to
Indemnity.  The Agent shall be
fully justified in failing or refusing to take any action hereunder unless it
shall first be indemnified to its satisfaction by the Lenders pro rata against
any and all liability, cost and expense which may be incurred by it by reason
of taking or continuing to take any such action.

 

7.15         Sharing of
Payments.  The Lenders agree
among themselves that, in the event that any Lender shall obtain payment in
respect of any Revolving Credit Advance, the Term Loan or any other obligation
owing to any of the Lenders under this Agreement through the exercise of a
right of set-off, banker’s lien, counterclaim or otherwise in excess of its
ratable share of payments received by all of the Lenders on account of the
Revolving Credit Advances, the Term Loan and other obligations, such Lender
shall promptly purchase from the other Lenders participations in such Revolving
Credit Advances, the Term Loan and other obligations in such amounts, and make
such other adjustments from time to time, as shall be equitable to the end that
all of the Lenders share such payment in accordance with such ratable shares,
except as otherwise required by Section 6.3. 
The Lenders further agree among themselves that if payment to a Lender
obtained by such Lender through the exercise of a right of set-off, banker’s
lien, counterclaim or otherwise as aforesaid shall be rescinded or must
otherwise be restored, each Lender, which shall have shared the benefit of such
payment shall, by repurchase of 

 

79

 

participations
theretofore sold, return its share of that benefit to each Lender whose payment
shall have been rescinded or otherwise restored.  The Company agrees that any Lender so purchasing such a
participation may, to the fullest extent permitted by law, exercise all rights of
payment, including set-off, banker’s lien or counterclaim, with respect to such
participation as fully as if such Lender were a holder of such Revolving Credit
Advance, the Term Loan or other obligation in the amount of such
participation.  The Lenders further
agree among themselves that, in the event that amounts received by the Lenders
and the Agent hereunder are insufficient to pay all such obligations or
insufficient to pay all such obligations when due, the fees and other amounts
owing to the Agent in such capacity shall be paid therefrom before payment of
obligations owing to the Lenders under this Agreement, except as otherwise
expressly provided in this Agreement, if any Lender or Agent shall fail to
remit to the Agent or any other Lender an amount payable by such Lender or
Agent to the Agent or such other Lender pursuant to this Agreement on the date
when such amount is due, such payments shall be made together with interest
thereon for each date from the date such amount is due until the date such
amount is paid to the Agent or such other Lender at a rate per annum equal to
the rate at which borrowings are available to the payee in its overnight
federal funds market.  It is further
understood and agreed among the Lenders and the Agent that if the Agent shall
engage in any other transactions with the Company and shall have the benefit of
any collateral or security therefor which does not expressly secure the
obligations arising under this Agreement except by virtue of a so-called
dragnet clause or comparable provision, the Agent shall be entitled to apply
any proceeds of such collateral or security first in respect of the obligations
arising in connection with such other transaction before application to the
obligations arising under this Agreement.

 

7.16         Withholding
Tax Exemption.  Each Lender that
is not organized and incorporated under the laws of the United States or any
State thereof agrees to file with the Agent and the Company, in duplicate, (a)
on or before the later of (i) the Effective Date and (ii) the date such Lender
becomes a Lender under this Agreement and (b) thereafter, for each taxable year
of such Lender (in the case of a Form W-8ECI) or for each third taxable year of
such Lender (in the case of any other form) during which interest or fees
arising under this Agreement and the Notes are received, unless not legally
able to do so as a result of a change in United States income tax enacted, or
treaty promulgated, after the date specified in the preceding clause (a), on or
prior to the immediately following due date of any payment by the Company
hereunder, a properly completed and executed copy of either Internal Revenue
Service Form W-8ECI or Internal Revenue Service Form W-8BEN and Internal
Revenue Service Form W-8 or Internal Revenue Service Form W-9 and any
additional form necessary for claiming complete exemption from United States
withholding taxes (or such other form as is required to claim complete
exemption from United States withholding taxes), if and as provided by the Code
or other pronouncements of the United States Internal Revenue Service, and such
Lender warrants to the Company that the form so filed will be true and
complete; provided that such Lender’s failure to complete and execute such Form
W-8ECI or Form W-8BEN, or Form W-8 or Form W-9, as the case may be, and any
such additional form (or any successor form or forms) shall not relieve the
Company of any of its obligations under this Agreement, except as otherwise
provided in this Section 7.16.

 

80

 

ARTICLE VIII

 

MISCELLANEOUS

 

8.1           Amendments,
Etc.

 

(a)           No amendment, modification,
termination or waiver of any provision of this Agreement nor any consent to any
departure therefrom shall be effective unless the same shall be in writing and
signed by the Required Lenders or as otherwise provided in clauses (i) through
(xiii) below, as applicable,

 

(i)            to
the extent any rights, obligations or duties of the Agent may be affected
thereby, the written approval of the Required Lenders and the Agent shall be
required;

 

(ii)           to
the extent that such action authorizes or permits the extension of time for, or
any reduction of the amount of, any payment of the principal of, or interest
on, the Term Loans or the Term Notes or any fees or other amount payable
(including, without limitation, any prepayment premium) to the Term Loan
Lenders hereunder, or forgives, compromises or cancels any principal of or
interest on any Term Loan, or agrees to subordinate any Term Loan in right of
payment to any other Indebtedness (other than in the manner provided for in
Section 6.3 hereof and/or in the Bank Subordination Agreement), only the
written approval of each Term Loan Lender affected thereby shall be required;

 

(iii)          to
the extent that such action authorizes or permits the extension of time for, or
any reduction of the amount of, any payment of the principal of, or interest on
(or the interest rate applicable to), the Revolving Credit Loans or the
Revolving Credit Notes, any Letter of Credit reimbursement obligation, or any
fees or other amount payable (including, without limitation, any prepayment
premium) to the Revolving Lenders hereunder, only the written approval of each
Revolving Lender affected thereby shall be required;

 

(iv)          to
the extent that such action authorizes any increase, in the aggregate for the
period from the Closing Date to the termination of the Revolving Commitments,
by 200 basis points or less in the Applicable Margin (without regard to the
Overdue Rate, which shall be in addition to any such increase in the Applicable
Margin) with respect to interest on the Revolving Credit Loans or the Revolving
Credit Notes or the Letters of Credit, or any increase in the fees payable
under subsection 2.3(b) by 37.5 basis points or less, only the written approval
of the Required Revolving Lenders shall be required;

 

(v)           to
the extent that such action authorizes any payment of fees by Borrower to the
Revolving Lenders in connection with any modification, waiver or amendment of
this Agreement or any other Loan Document and such fee does not exceed 

 

81

 

1.5%
of the Revolving Commitment then in effect, only the written approval of the
Required Revolving Lenders shall be required;

 

(vi)          to
the extent that such action authorizes any increase in the Agent’s agency fees
payable pursuant to subsection 2.3(e) by an amount not exceeding 100% of the
amount in effect on the Effective Date, only the written approval of the Agent
shall be required;

 

(vii)         to
the extent any rights, obligations, or duties of LaSalle in its capacity as the
issuing bank of any Letter of Credit, may be affected thereby, the written
approval of LaSalle and the Required Lenders shall be required;

 

(viii)        to
the extent that any proposed amendment, waiver or consent affects Section 2.6
as a condition to extending any Revolving Credit Advance, the written approval
of all of the Revolving Lenders shall only be required (provided that if any
such action would knowingly cause or permit the Revolving Credit Advances to
exceed $33,000,000, the written approval of the Required Term Loan Lenders
shall also be required);

 

(ix)           to
the extent that any proposed amendment, waiver, modification or consent affects
any of subsections 5.2(a)(i), 5.2(b)(i), 5.2(c)(i) or 5.2(d)(i) (or any
definition relative to financial terms used in such Sections), only the written
approval of the Required Revolving Lenders shall be required;

 

(x)            to
the extent that any proposed amendment, waiver, modification or consent affects
any of subsections 5.2(a)(ii), 5.2(b)(ii), 5.2(c)(ii) or 5.2(d)(ii) (or any
definition relative to financial terms used in such Sections), only the written
approval of the Required Lenders shall be required;

 

(xi)           to
the extent that any proposed amendment, waiver, modification or consent affects
subsection 5.1(g), only the written approval of LaSalle and the Required
Lenders shall be required;

 

(xii)          to
the extent that any proposed amendment, waiver, modification or consent affects
the definition of “Borrowing Base,” only the written approval of the Required
Revolving Lenders shall be required; and

 

(xiii)         to
the extent that any proposed amendment, waiver, modification or consent affects
any administrative matter concerning the Revolving Credit Advances which is not
subject to any of the foregoing clauses, only the written approval of the Agent
and of the Required Revolving Lenders shall be required;

 

provided, however,
that notwithstanding the foregoing, no such amendment, modification,
termination, waiver or consent shall, without the consent of the Agent and all
of the Lenders,

 

82

 

(1)           subject
to Section 6.2(a), amend or terminate the Commitment of any Lender or modify
the provisions of this Section regarding the taking of any action under this Section
or the provisions of Sections 6.2, 6.3
or 7.10 or the definitions of Required Lenders, Required Revolving Lenders and
Required Term Loan Lenders, or

 

(2)           release
all or substantially all of the Collateral or release any material Guarantor
(except as permitted as a result of an asset disposition pursuant to
subsections 5.2(g), (h), (l) or (s)).

 

(b)           Any such amendment, waiver or consent
shall be effective only in the specific instance and for the specific purpose
for which given.

 

(c)           Notwithstanding anything herein to
the contrary, no Defaulting Lender shall be entitled to vote (whether to
consent or to withhold its consent) with respect to any amendment,
modification, termination or waiver of any provision of this Agreement or any
departure therefrom or any direction from the Lenders to the Agent, and, for
purposes of determining the Required Lenders, Required Revolving Lenders and/or
Required Term Loan Lenders at any time, the pro rata portion of the Term Loan,
the Revolving Commitments and the Revolving Credit Advances (as applicable) of
each Defaulting Lender shall be disregarded.

 

8.2           Notices.

 

(a)           Except as otherwise provided in
subsection 8.2(c) hereof, all notices and other communications hereunder shall
be in writing and shall be delivered or sent to the Company, the Agent and the
Lenders at the respective addresses and numbers for notices set forth on the
signature pages hereof, or to such other address as may be designated by the
Company, the Agent or any Lender by notice to the other parties hereto.  All notices and other communications shall
be deemed to have been given at the time of actual delivery thereof to such
address, or if sent by certified or registered mail, postage prepaid, to such
address, on the third day after the date of mailing, or in the case of telex
notice, upon receipt of the appropriate answerback, or, in the case of
facsimile notice, upon receipt of a confirmation mechanically produced by the
facsimile machine, provided, however, that notices to the Agent shall not be effective
until received.

 

(b)           Notices by the Company to the Agent
with respect to terminations or reductions of the Commitments pursuant to
Section 2.2, requests for Revolving Credit Advances pursuant to Section 2.4,
requests for continuations or conversions of Revolving Credit Loans pursuant to
Section 2.7 and notices of prepayment pursuant to Section 3.1 shall be
irrevocable and binding on the Company.

 

(c)           Any notice to be given by the Company
to the Agent pursuant to Sections 2.4, 2.7 or 3.1 if consented to by the Agent,
and any notice to be given by the Agent or any Lender hereunder, may be given
by telephone, and all such notices given by the Company must be immediately
confirmed in writing in the manner provided in subsection 8.2(a).  Any such 

 

83

 

notice given by
telephone shall be deemed effective upon receipt thereof by the party to whom
such telephonic notice is to be given.

 

8.3           No Waiver By Conduct; Remedies
Cumulative.  No course of
dealing on the part of the Agent or any Lender, nor any delay or failure on the
part of the Agent or any Lender in exercising any right, power or privilege
hereunder, shall operate as a waiver of such right, power or privilege or
otherwise prejudice the Agent’s or such Lender’s rights and remedies hereunder;
nor shall any single or partial exercise thereof preclude any further exercise
thereof or the exercise of any other right, power or privilege.  No right or remedy conferred upon or
reserved to the Agent or any Lender under any Loan Document is intended to be
exclusive of any other right or remedy, and every right and remedy shall be
cumulative and in addition to every other right or remedy granted thereunder or
now or hereafter existing under any applicable law.  Every right and remedy granted by any Loan Document or by
applicable law to the Agent or any Lender may be exercised from time to time
and as often as may be deemed expedient by the Agent or any Lender.

 

8.4           Reliance on and Survival of Various
Provisions.  All terms,
covenants, agreements, representations and warranties of the Company and any
Guarantor made herein or in any other Loan Document or in any certificate,
report, financial statement or other document furnished by or on behalf of the
Company and any Guarantor in connection with the negotiation and modification
of this Agreement shall be deemed to have been relied upon by the Lenders,
notwithstanding any investigation heretofore or hereafter made by any Lender or
on such Lender’s behalf and those covenants and agreements of the Company set
forth in Section 3.7, 3.9 and 8.5 hereof shall survive the repayment in full of
the Revolving Credit Advances and the Term Loan and the termination of the
Commitments.

 

8.5           Expenses;
Indemnification.

 

(a)           The Company agrees to pay, or
reimburse the Agent for the payment of, on demand, (i) the reasonable fees and
expenses of counsel to the Agent in connection with the preparation, execution,
delivery and administration of the Loan Documents, the review of the Subordinated
Debt Documents and the Preferred Stock Documents and the consummation of the
transactions contemplated hereby and thereby, and in connection with advising
the Agent as to its rights and responsibilities with respect thereto, and in
connection with any amendments, waivers or consents in connection therewith,
and (ii) all stamp and other taxes and fees payable or determined to be payable
in connection with the execution, delivery, filing or recording of the Loan
Documents and the consummation of the transactions contemplated hereby, and any
and all liabilities with respect to or resulting from any delay in paying or
omitting to pay such taxes or fees, and (iii) all costs and expenses of the
Agent (including reasonable fees and expenses of counsel and whether incurred
through negotiations, legal proceedings or otherwise) in connection with any
Unmatured Event or Event of Default or the enforcement or collection, or the
exercise or preservation, of any rights under any Loan Document or in
connection with any refinancing or restructuring of the credit arrangements
provided under this Agreement (which costs and expenses shall be deemed to
include, without limitation, those incurred by any auditor or consultant
engaged by counsel for the Agent pursuant to subsection 5.1(e) hereof), and
(iv) all 

 

84

 

costs and expenses
of the Agent (including reasonable fees and expenses of counsel) in connection
with any action or proceeding relating to a court order, injunction or other
process or decree restraining or seeking to restrain the Agent from paying any
amount under, or otherwise relating in any way to, any Letter of Credit and any
and all costs and expenses which any of them may incur relative to any payment
under any Letter of Credit.  Without in
any way limiting the foregoing, each reference to the Agent and its counsel in
this subsection 8.5(a) shall apply equally to the Term Loan Lender, in its
capacity as a Lender of all or any portion of the Term Loan hereunder, and its
counsel.

 

(b)           The Company agrees to indemnify each
Lender, the Agent and each of their respective officers, directors, employees
and agents (collectively, the “Indemnified Parties”) and hold each Indemnified
Party harmless from and against any and all liabilities, losses, damages, costs
and expenses of any kind, including, without limitation, the reasonable fees
and disbursements of counsel, which may be incurred by any Indemnified Party in
connection with any investigative, administrative or judicial proceeding
(whether or not such Indemnified Party shall be designated a party thereto)
(collectively, the “Indemnified Liabilities”) at any time relating to (whether
before or after the execution of this Agreement) any of the following:

 

(i)            any
actual or proposed use of any Loan, Letter of Credit hereunder by the Company
or any of its Subsidiaries or any transaction financed or to be financed in
whole or in part, directly or indirectly, with the proceeds of any Loan;

 

(ii)           the
entering into and performance of this Agreement and any other Loan Document by
any of the Indemnified Parties (including any action brought by or on behalf of
the Company as the result of any determination by any Lender not to make any
Loan);

 

(iii)          any
investigation, litigation or proceeding related to any Permitted Acquisition or
proposed Permitted Acquisition by the Company or any of its Subsidiaries of all
or any portion of the stock or assets of any Person or to the issuance of, or
any other matter relating to, any Subordinated Debt or Preferred Stock, whether
or not any Indemnified Party is a party thereto;

 

(iv)          any
investigation, litigation or proceeding related to any environmental cleanup,
audit, compliance or other matter relating to any release by the Company or any
of its Subsidiaries of any Hazardous Material or any violations of
Environmental Laws; or

 

(v)           the
presence on or under, or the escape, seepage, leakage, spillage, discharge,
emission, or release from, any real property owned or operated by the Company
or any Subsidiary thereof of any Hazardous Material (including any losses,
liabilities, damages, injuries, costs, expenses or claims asserted or arising
under any Environmental Law), regardless of whether caused by, or within the
control of, the Company or such Subsidiary, except for any such Indemnified
Liabilities arising for the 

 

85

 

account
of a particular Indemnified Party by reason of the activities of the
Indemnified Party on the property of the Company or any Subsidiary conducted
subsequent to a foreclosure on such property by any Indemnified Party or by
reason of the relevant Indemnified Party’s gross negligence or willful
misconduct or breach of this Agreement,

 

(vi)          and
if and to the extent that the foregoing undertaking may be unenforceable for
any reason, the Company hereby agrees to make the maximum contribution to the
payment and satisfaction of each of the Indemnified Liabilities which is
permissible under applicable law.

 

The Company shall be obligated to indemnify
the Indemnified Parties for all Indemnified Liabilities subject to and pursuant
to the foregoing provisions, regardless of whether the Company or any of its
Subsidiaries had knowledge of the facts and circumstances giving rise to such
Indemnified Liability; provided, however, that no Indemnified Party shall have
the right to be indemnified hereunder for its own gross negligence or willful
misconduct as determined by a court of competent jurisdiction.

 

8.6           Successors
and Assigns.

 

(a)           This Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors
and assigns, provided that the Company may not, without the prior consent of
all the Lenders, assign its rights or obligations under any Loan Document and
the Lenders shall not be obligated to make any Loan hereunder to any entity
other than the Company.

 

(b)           Any Lender may sell a participation
interest to any financial institution or institutions, and such financial
institution or institutions may further sell a participation interest
(undivided or divided) in, the Loans and such Lender’s rights and benefits
under the Loan Documents, and to the extent of that participation, such
participant or participants shall have the same rights and benefits against the
Company under subsection 6.2(c) as it or they would have had if participation
of such participant or participants were the Lender making the Loans to the
Company hereunder, provided, however, that (i) such Lender’s obligations under
this Agreement shall remain unmodified and fully effective and enforceable
against such Lender, (ii) such Lender shall remain solely responsible to the
other parties hereto for the performance of such obligations, (iii) such Lender
shall remain the holder of its Notes for all purposes of this Agreement, (iv)
the Company, the 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, (v) such Lender shall not grant to its participant
any rights to consent or withhold consent to any action taken by such Lender or
the Agent under this Agreement other than action requiring the consent of all
of the Lenders hereunder (or in the case of a participation in the Revolving
Credit Loans and Revolving Commitments, the consent of all Revolving Lenders
hereunder), and (iv) such participation shall in no event be less than
$5,000,000.  The Agent from time to time
in its sole discretion may appoint agents for the purpose of servicing and administering
this Agreement and the transactions contemplated hereby and enforcing or
exercising any rights or remedies of the Agent provided under the Loan
Documents or otherwise.

 

86

 

In furtherance of
such agency, the Agent may from time to time direct that the Company provide
notices, reports and other documents contemplated by this Agreement (or
duplicates thereof) to such agent.  The
Company hereby consents to the appointment of such agent and agrees to provide
all such notices, reports and other documents and to otherwise deal with such
agent acting on behalf of the Agent in the same manner as would be required if
dealing with the Agent itself.

 

(c)           Each Lender may, with the prior
written consent of the Company solely as to the Revolving Credit Advances and
Revolving Commitments, which consent from the Company shall not be unreasonably
withheld and may not be withheld if any Event of Default has occurred and is
continuing or if such assignment is to an Affiliate of a Lender or to another
Lender, and the prior written consent of the Agent (not to be unreasonably
withheld or delayed), assign to one or more banks or other entities all or a
portion of its rights and obligations under this Agreement (including, without
limitation, all or a portion of its Commitment, the Revolving Credit Advances
and pro rata portion of the Term Loan owing to it and the Note or Notes held by
it); provided, however, that (i) each such assignment shall be of a uniform,
and not a varying, percentage of all rights and obligations, (ii) except in the
case of an assignment of all of a Lender’s rights and obligations under this
Agreement, unless such assignment is to another Lender, the amount of the
Commitment of the assigning Lender being assigned pursuant to each such
assignment (determined as of the date of the Assignment and Acceptance with
respect to such assignment) shall in no event be less than $2,500,000, and in
integral multiples of $1,000,000 thereafter, or such lesser amount as the
Company and the Agent may consent to, and (iii) the parties to each such
assignment shall execute and deliver to the Agent, for its acceptance and
recording in the Register, an Assignment and Acceptance in the form of Exhibit
J hereto (an “Assignment and Acceptance”), together with any Note or Notes
subject to such assignment and a processing and recordation fee of $3,500,
payable to the Agent for its sole benefit. 
Upon such execution, delivery, acceptance and recording, from and after
the effective date specified in such Assignment and Acceptance, (x) the
assignee thereunder shall be a party hereto and, to the extent that rights and
obligations hereunder have been assigned to it pursuant to such Assignment and
Acceptance the rights and obligations of a Lender hereunder and (y) the Lender
assignor thereunder shall to the extent that rights and obligations hereunder
have been assigned by it pursuant to such Assignment and Acceptance, relinquish
its rights and be released from its obligations under this Agreement (and, in
the case of an Assignment and Acceptance covering all of the remaining portion
of an assigning Lender’s rights and obligations under this Agreement, such
Lender shall cease to be a party hereto).

 

(d)           By executing and delivering an Assignment
and Acceptance, the Lender assignor thereunder and the assignee thereunder
confirm to and agree with each other and the other parties hereto as follows:
(i) other than as provided in such Assignment and Acceptance, such assigning
Lender makes no representation or warranty and assumes no responsibility with
respect to any statements, warranties or representations made in or in
connection with this Agreement or the execution, legality, validity,
enforceability, genuineness, sufficiency or value of this Agreement or any
other instrument or document furnished pursuant hereto; (ii) such assigning
Lender makes no representation or warranty and assumes no responsibility with
respect to the financial condition of the Company or the performance or
observance by the 

 

87

 

Company of any of
its obligations under this Agreement or any other instrument or document
famished pursuant hereto; (iii) such assignee confirms that it has received a
copy of this Agreement, together with copies of the financial statements
referred to in Section 4.6 and subsection 5.1(d) for periods prior to the date
of such assignment, and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into such
Assignment and Acceptance; (iv) such assignee will, independently and without
reliance upon the Agent, such assigning Lender or any other Lender, and based
on such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under
this Agreement; (v) such assignee appoints and authorizes the Agent to take
such action as agent on its behalf and to exercise such powers and discretion
under this Agreement as are delegated to the Agent by the terms hereof together
with such powers and discretion as are reasonably incidental thereto; and (vi)
such assignee agrees that it will perform in accordance with their terms all of
the obligations that by the terms of this Agreement and such Assignment and
Acceptance are required to be performed by it as a Lender.

 

(e)           The Agent shall maintain at its
address designated on the signature pages hereof a copy of each Assignment and
Acceptance delivered to and accepted by it and a register for the recordation
of the names and addresses of the Lenders and the Commitment of, and principal
amount of the Revolving Credit Advances and/or Term Loan owing to, each Lender
from time to time (the “Register”).  The
entries in the Register shall be conclusive and binding, for all purposes,
absent manifest error, and the Company, the Agent and the Lenders may treat
each Person whose name is recorded in the Register as a Lender hereunder for
all purposes of this Agreement.  The
Register shall be available for inspection by the Company or any Lender at any
reasonable time and from time to time upon reasonable prior notice.

 

(f)            Upon its receipt of an Assignment
and Acceptance executed by an assigning Lender and an assignee, together with
any Note or Notes subject to such assignment, the Agent shall, if such
Assignment and Acceptance has been completed, (i) accept such Assignment and
Acceptance, (ii) record the information contained therein in the Register and
(iii) give prompt notice thereof to the Company.  Within five (5) Business Days after its receipt of such notice,
the Company, at its own expense, shall execute and deliver to the Agent in
exchange for the surrendered Note or Notes a new Note or Notes to the order of
such assignee in an amount equal to, and for the same type(s) of, the
Commitment or Loan assumed by it pursuant to such Assignment and Acceptance
and, if the assigning Lender has retained a Commitment or Loan hereunder, a new
Note to the order of the assigning Lender in an amount equal to, and for the
same type(s) of, the Commitment or Loan retained by it hereunder.  Such new Note or Notes shall be in an
aggregate principal amount equal to the aggregate principal amount of such
surrendered Note or Notes, shall be dated the effective date of such Assignment
and Acceptance and shall otherwise be in substantially the form of the
applicable exhibit(s) hereto.

 

(g)           The Lenders may, in connection with
any assignment or participation or proposed assignment or participation
pursuant to this Section 8.6, disclose to the assignee or participant or
proposed assignee or participant, any information relating to the Company, 

 

88

 

provided that
assignee or participant agrees to keep all non-public information confidential
to the same extent required by this Agreement.

 

(h)           Notwithstanding any other provision
set forth in this Agreement, any Lender may at any time create a security
interest in, or assign, all or any portion of its rights under this Agreement
(including, without limitation, the Loans owing to it and the Note or Notes
held by it) in favor of any Federal Reserve Lender in accordance with
Regulation A of the Board of Governors of the Federal Reserve System; provided
that such creation of a security interest or assignment shall not release such
Lender from its obligations under this Agreement.

 

8.7           Counterparts.  This Agreement may be executed in any number
of counterparts, all of which taken together shall constitute one and the same
instrument and any of the parties hereto may execute this Agreement by signing
any such counterpart.

 

8.8           Governing Law.  This Agreement is a contract made under, and
shall be governed by and construed in accordance with, the law of the State of
Illinois in the same manner applicable to contracts made and to be performed
entirely within such State and without giving effect to choice of law
principles of such State.

 

8.9           Table
of Contents and Headings.  The
table of contents and the headings of the various subdivisions hereof are for
the convenience of reference only and shall in no way modify any of the terms
or provisions hereof.

 

8.10         Construction of Certain Provisions.  If any provision of this Agreement refers to
any action to be taken by any Person, or which such Person is prohibited from
taking, such provision shall be applicable whether such action is taken
directly or indirectly by such Person, whether or not expressly specified in
such provision.

 

8.11         Integration
and Severability.  This
Agreement amends and restates the Existing Credit Agreement and embodies the
entire agreement and understanding between the Company and the Agent and the
Lenders, and supersedes all prior agreements and understandings, relating to
the subject matter hereof.  In case any
one or more of the obligations of the Company under any Loan Document shall be
invalid, illegal or unenforceable in any jurisdiction, the validity, legality
and enforceability of the remaining obligations of the Company shall not in any
way be affected or impaired thereby, and such invalidity, illegality or
unenforceability in one jurisdiction shall not affect the validity, legality or
enforceability of the obligations of the Company under any Loan Document in any
other jurisdiction.

 

8.12         Independence
of Covenants.  All covenants
hereunder shall be given independent effect so that if a particular action or
condition is not permitted by any such covenant, the fact that it would be
permitted by an exception to, or would be otherwise within the limitations of
another covenant shall not avoid the occurrence of an Unmatured Event or an
Event of Default or any event or condition which with notice or lapse of time,
or both, could become such an Unmatured Event or an Event of Default if such
action is taken or such condition exists.

 

89

 

8.13         Interest
Rate Limitation. 
Notwithstanding any provision of any Loan Document, in no event shall
the amount of interest paid or agreed to be paid by the Company exceed an
amount computed at the highest rate of interest permissible under applicable
law.  If, from any circumstances
whatsoever, fulfillment of any provision of any Loan Document at the time
performance of such provision shall be due, shall involve exceeding the
interest rate limitation validly prescribed by law which a court of competent
jurisdiction may deem applicable hereto, then, ipso facto, the obligations to
be fulfilled shall be reduced to an amount computed at the highest rate of
interest permissible under applicable law, and if for any reason whatsoever the
Lender shall ever receive as interest an amount which would be deemed unlawful
under such applicable law such interest shall be automatically applied to the
payment of principal of the Loans outstanding hereunder to such Lender (whether
or not then due and payable) and not to the payment of interest, or shall be
refunded to the Company if such principal and all other obligations of the
Company to the Lenders have been paid in full.

 

8.14         Judgment
and Payment.

 

(a)           If, for the purpose of obtaining
judgment in any court, it is necessary to convert a sum owing hereunder by the
Company in one currency into another currency, the Company agrees, to the
fullest extent that it may effectively do so, that the rate of exchange used
shall be that at which in accordance with normal banking procedures in the
relevant jurisdiction the relevant Lender could purchase the first currency
with such other currency on the Business Day immediately preceding the day on
which the final judgment is given.

 

(b)           The obligations of the Company in
respect of any sum due in Dollars to any party hereto or any holder of the
obligations owing hereunder (the “Applicable Creditor”) shall, notwithstanding
any payment obligation or judgment in a currency (the “Payment Currency”) other
than Dollars, be discharged only to the extent that, on the Business Day
following receipt by the Applicable Creditor of any sum adjudged to be so due
in the Payment Currency, the Applicable Creditor may in accordance with normal
banking procedures in the relevant jurisdiction purchase Dollars with the
Payment Currency; if the amount of Dollars so purchased is less than the sum
originally due to the Applicable Creditor in Dollars, the Company agrees, as a
separate obligation and notwithstanding any such judgment, to indemnify the
Applicable Creditor against such loss. 
The obligations of the Company contained in this Section 8.14 shall
survive the termination of this Agreement and the payment of all other amounts
owing hereunder.

 

8.15         Submission To Jurisdiction; Waivers.  The Company hereby irrevocably and
unconditionally:

 

(a)           submits for itself and its property
in any legal action or proceeding relating to this Agreement and the other Loan
Documents to which it is a party, or for recognition and enforcement of any
judgment in respect thereof, to the non-exclusive general jurisdiction of any
United States federal or Illinois state court sitting in Chicago, Illinois and
appellate courts from any thereof;

 

90

 

(b)           consents that any such action or
proceeding may be brought in such courts and waives an objection that it may
now or hereafter have to the venue of any such action or proceeding in any such
court or that such action or proceeding was brought in an inconvenient court
and agrees not to plead or claim the same;

 

(c)           agrees that service of process in any
such action or proceeding may be effected by mailing a copy thereof by
registered or certified mail (or any substantially similar form of mail),
postage prepaid, to the Company at the address specified pursuant to Section
8.2, or at such other address of which the Agent shall have been notified
pursuant thereto;

 

(d)           agrees that nothing herein shall
affect the right to effect service of process in any other manner permitted by
law or shall limit the right to sue in any other jurisdiction; and

 

(e)           waives, to the maximum extent not
prohibited by law, any right it may have to claim or recover in any legal
action or proceeding referred to in this section any special, exemplary,
punitive or consequential damages.

 

8.16         Acknowledgments.  The Company hereby acknowledges that:

 

(a)           it has been advised by counsel in the
negotiation, execution and delivery of this Agreement and the other Loan
Documents;

 

(b)           none of the Agent or any Lender has
any fiduciary relationship with or duty to the Company arising out of or in
connection with this Agreement or any of the other Loan Documents, and the
relationship between the Agent and the Lenders, on the one hand, and the
Company, on the other hand, in connection herewith or therewith is solely that
of debtor and creditor; and

 

(c)           no joint venture is created hereby or
by the other Loan Documents or otherwise exists by virtue of the transactions contemplated
hereby among the Lenders or among the Company and the Lenders.

 

8.17         Confidentiality.  Each Lender agrees to hold any non-public
confidential information which it may receive from the Company pursuant to this
Agreement in confidence except for disclosure: (i) to its Affiliates and to
other Lenders and their respective Affiliates, (ii) to legal counsel,
accountants, and other professional advisors to that Lender or to a potential
participant or assignee, (iii) to regulatory officials, (iv) to any Person as
requested pursuant to or as required by law, regulation, or legal process, (v)
to any Person in connection with any legal proceeding to which that Lender is a
party, and (vi) otherwise permitted by this Agreement.

 

8.18         WAIVER OF
JURY TRIAL.  THE LENDERS AND THE
AGENT AND THE COMPANY, AFTER CONSULTING OR HAVING HAD THE OPPORTUNITY TO
CONSULT WITH COUNSEL, KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT
ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN ANY LITIGATION BASED UPON OR ARISING
OUT OF ANY LOAN DOCUMENT OR ANY RELATED INSTRUMENT OR AGREEMENT OR ANY OF THE
TRANSACTIONS 

 

91

 

CONTEMPLATED BY
THIS AGREEMENT OR ANY COURSE OF CONDUCT, DEALING, STATEMENTS (WHETHER ORAL OR
WRITTEN) OR ACTIONS OF ANY OF THEM. 
NEITHER ANY LENDER, THE AGENT NOR THE COMPANY SHALL SEEK TO CONSOLIDATE,
BY COUNTERCLAIM OR OTHERWISE, ANY SUCH ACTION IN WHICH A JURY TRIAL HAS BEEN
WAIVED WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN
WAIVED.  THESE PROVISIONS SHALL NOT BE
DEEMED TO HAVE BEEN MODIFIED IN ANY RESPECT OR RELINQUISHED BY ANY PARTY HERETO
EXCEPT BY A WRITTEN INSTRUMENT EXECUTED BY SUCH PARTY.

 

8.19         Amendment
and Restatement.  Upon the
satisfaction or waiver (in the discretion of the Agent and the Lenders) of all
the conditions set forth in Section 2.5, the Existing Credit Agreement
automatically shall be deemed amended and restated in its entirety by this
Credit Agreement (it being understood that until such satisfaction or waiver,
the terms of the Existing Credit Agreement shall continue in full force and
effect).  It is the intent of the
parties hereto that this Agreement shall re-evidence, in part, the Lender
Indebtedness under the Existing Credit Agreement and is in no way intended to constitute
a novation of any of the Lender Indebtedness which was evidenced by the
Existing Credit Agreement or any of the other Loan Documents executed in
connection therewith.

 

[Balance of page intentionally left blank;
signature page follows.]

 

92

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered as of the date first above-written.

 

	
  Address for Notices:

  	
   

  	
  STANDARD PARKING CORPORATION

  
	
   

  	
   

  	
   

  
	
  900 North Michigan Avenue

  	
   

  	
   

  
	
  Suite 1600

  	
   

  	
  By:

  	
   

  	
   

  
	
  Chicago, Illinois 60611

  	
   

  	
  Name:

  	
   

  	
   

  
	
  Attn:  Marc Baumann

  	
   

  	
  Title:

  	
   

  	
   

  
	
  Cc:  Legal Department

  	
   

  	
   

  
	
  Telephone:  (312)274-2199

  	
   

  	
   

  
	
  Facsimile:  (312)646-6165

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address for Notices: 

  	
   

  	
  LASALLE BANK NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  
	
  135 South LaSalle Street 

  	
   

  	
   

  
	
  Chicago, Illinois 60603 

  	
   

  	
  By:

  	
   

  	
   

  
	
  Attn: Ms. Mary Lou Bartlett 

  	
   

  	
  Name:

  	
   

  	
   

  
	
  Telephone: (312)904-0433 

  	
   

  	
  Title:

  	
   

  	
   

  
	
  Facsimile: (312)904-0432

  	
   

  	
   

  
	
   

  	
   

  	
  Revolving Commitment: $33,000,000 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Term Loan Commitment:  $0

  
	
   

  	
   

  	
   

  
	
  Address for Notices:

  	
   

  	
  CREDIT SUISSE FIRST BOSTON, acting through its 

  Cayman Island Branch, as a Lender

  
	
  (See Attached Schedule 1)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Revolving Commitment: $0 

  
	
   

  	
   

  	
  Term Loan Commitment:  $32,000,000

  
													

 

93

 

Schedule 1

 

94Exhibit
10.41

 

LOAN
MODIFICATION AGREEMENT

 

 

This Loan Modification
Agreement is entered into as of September 15, 2003, by and between
Exelixis, Inc., a Delaware corporation (the “Borrower”) and Silicon Valley Bank
(“Bank”).

 

1.                                       DESCRIPTION
OF EXISTING INDEBTEDNESS:  Among
other indebtedness which may be owing by Borrower to Bank, Borrower is indebted
to Bank pursuant to, among other documents, a Loan and Security Agreement,
dated May 22, 2002, as may be amended from time to time, (the “Loan
Agreement”).  The Loan Agreement
provided for, among other things, a Committed Equipment Line in the original
principal amount of Sixteen Million Dollars ($16,000,000) to be increased to
Nineteen Million Dollars ($19,000,000) pursuant to the terms of this Loan
Modification Agreement.  Defined terms
used but not otherwise defined herein shall have the same meanings as in the
Loan Agreement.

 

Hereinafter, all
indebtedness owing by Borrower to Bank shall be referred to as the
“Indebtedness.”

 

2.                                       DESCRIPTION
OF COLLATERAL AND GUARANTIES. 
Repayment of the Indebtedness is secured by the Collateral as described
in the Loan Agreement.

 

Hereinafter, the
above-described security documents and guaranties, together with all other
documents securing repayment of the Indebtedness shall be referred to as the
“Security Documents”.  Hereinafter, the
Security Documents, together with all other documents evidencing or securing
the Indebtedness shall be referred to as the “Existing Loan Documents”.

 

3.                                       DESCRIPTION
OF CHANGE IN TERMS.

 

A.                                   Modification
to Loan Agreement.

 

1.                                       The
definition of “Commitment Equipment Line” in Section 13 of the Loan
Agreement is hereby amended to read as follows:

 

“‘Commitment Equipment
Line’ is a Credit Extension of up to $19,000,000.”

 

4.                                       CONSISTENT
CHANGES.  The Existing Loan
Documents are hereby amended wherever necessary to reflect the changes
described above.

 

5.                                       PAYMENT
OF LOAN FEE.  Borrower shall not be
charged any fees or expenses by Bank related to this Loan Modification
Agreement.

 

6.                                       NO
DEFENSES OF BORROWER.  Borrower
agrees that, as of the date hereof, it has no defenses against the obligations
to pay any amounts under the Indebtedness.

 

1

 

7.                                       CONTINUING
VALIDITY.  Borrower understands and
agrees that in modifying the existing Indebtedness, Bank is relying upon
Borrower’s representations, warranties, and agreements, as set forth in the
Existing Loan Documents.  Except as
expressly modified pursuant to this Loan Modification Agreement, the terms of
the Existing Loan Documents remain unchanged and in full force and effect.  Bank’s agreement to modifications to the
existing Indebtedness pursuant to this Loan Modification Agreement in no way
shall obligate Bank to make any future modifications to the Indebtedness.  Nothing in this Loan Modification Agreement
shall constitute a satisfaction of the Indebtedness.  It is the intention of Bank and Borrower to retain as liable
parties all makers and endorsers of Existing Loan Documents, unless the party
is expressly released by Bank in writing. 
No maker, endorser, or guarantor will be released by virtue of this Loan
Modification Agreement.  The terms of
this paragraph apply not only to this Loan Modification Agreement, but also to
all subsequent loan modification agreements.

 

8.                                       CONDITIONS.  The effectiveness of this Loan Modification
Agreement is conditioned upon payment of the out-of-pocket expenses.

 

This Loan Modification
Agreement is executed as of the date first written above.

 

	
  BORROWER:

  	
  BANK:

  
	
   

  	
   

  
	
  EXELIXIS, INC.

  	
  SILICON
  VALLEY BANK

  
	
   

  	
   

  
	
  By:

  	
  /s/ George Scangos

  	
   

  	
  By:

  	
  /s/ Peter Scott

  	
   

  
	
   

  	
   

  
	
  Name:

  	
  George Scangos

  	
   

  	
  Name:

  	
  Peter Scott

  	
   

  
	
   

  	
   

  
	
  Title:

  	
  CEO

  	
   

  	
  Title:

  	
  SVP

  	
   

  
										

 

2

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