Document:

Exhibit 10.1

AMENDMENT
NO. 1, dated as of April 24, 2006 (this “Amendment No. 1”), to the Credit Agreement dated as of January 25,
2006 (the “Credit Agreement”), among SHUFFLE
MASTER, INC. (the “Borrower”),
Deutsche Bank AG Cayman Islands Branch, as LENDER, DEUTSCHE BANK AG NEW YORK
BRANCH, as administrative agent (the “Administrative Agent”)
and DEUTSCHE BANK SECURITIES INC. as sole arranger and sole book-runner (the “Arranger”).

A.    Pursuant to
the Credit Agreement, the Lender have extended credit to the Borrower pursuant
to the terms and subject to the conditions set forth therein.

B.     The
Borrower has requested that the Lender agree, subject to the conditions and
terms set forth in this Amendment No. 1, to amend the definition of “Maturity
Date” in the Credit Agreement, as set forth below.

C.     The
Required Lenders (as defined in the Credit Agreement) are willing to amend the
Credit Agreement pursuant to the terms and subject to the conditions set forth
herein.

D.    Capitalized
terms used but not defined herein have the meanings assigned to them in the
Credit Agreement, as amended hereby.

Accordingly, in consideration of the mutual agreements
herein contained and other good and valuable consideration, the sufficiency and
receipt of which are hereby acknowledged, and subject to the conditions set
forth herein, the parties hereto hereby agree as follows:

SECTION 1.   Amendment to Section 2.05.   Section 2.05
of the Credit Agreement is hereby deleted in its entirety and replaced with the
following:

“The Loan will mature on July 24, 2006.”

SECTION 2.   Amendment to Section 7.11.   Section 7.11
of the Credit Agreement is hereby deleted in its entirety and replaced with the
following:

“Security, Further
Assurances, Additional Subsidiaries.   (a) The Borrower
will use its commercially reasonable efforts to, and will use its commercially
reasonable efforts to cause each other Credit Party that is a Guarantor
(without, in either event, assurance of success) to, cause all amounts owing
under the Loans and all obligations under the related Guaranty to be secured as
promptly as practicable after the Amendment No. 1 Effective Date (including,
without limitation, by obtaining all necessary approvals of Mississippi state
regulatory authorities) by (x) a first priority perfected security
interest in all stock, other equity interests and promissory notes owned by the
Borrower and Guarantors, provided that not more than 65% of the total
outstanding voting stock of any non-U.S. subsidiary of the Borrower shall be
required to be pledged, (y) a first priority perfected security interest
in all other tangible and intangible assets (including, without limitation,
receivables, contract rights, securities, patents, trademarks, other
intellectual property, inventory, equipment, material owned real estate, but
excluding cash and deposit accounts, leaseholds, vehicles, any property subject
to a valid restriction on assignment or the grant of which would result in the
forfeiture of any rights of the Borrower or the Guarantors therein and any
other property for which the cost of obtaining a valid and perfected security
interest is disproportionate to the value of such collateral) owned by Borrower
and the Guarantors, subject in each case to exceptions to be mutually agreed
and otherwise reasonably satisfactory to the Administrative Agent and subject
as to priority to customary permitted liens and (z) the Borrower will, and
will cause the Guarantors to, deliver to the Administrative Agent such opinions
of counsel as may be reasonably requested by the Administrative Agent.
Notwithstanding the foregoing, neither the Borrower nor any Guarantor shall be
required to enter into any control agreements or take any other action to
perfect a security interest other than the filing of appropriate 

 1
 

UCC financing statements
and the delivery of certificated securities and instruments included in the
collateral;

(b) the Borrower will, and will cause each of the
other Credit Parties that are Guarantors to, at the expense of the Borrower,
make, execute, endorse, acknowledge, file and/or deliver to the Collateral
Agent from time to time such vouchers, invoices, schedules, confirmatory
assignments, conveyances, financing statements, transfer endorsements, powers
of attorney, certificates, reports and other assurances or instruments and take
such further steps relating to the collateral covered by any of the Security
Documents as the Collateral Agent may reasonably require; and

(c)  if any Credit Party acquires or creates a
Wholly-Owned Domestic Subsidiary that is not an Immaterial Subsidiary after the
date of this Agreement, then the Credit Party will give at least five Business
Days’ notice of the acquisition or creation of such Wholly-Owned Domestic
Subsidiary, and such Wholly-Owned Domestic Subsidiary shall execute a
counterpart of the Guaranty within five Business Days after becoming a Wholly-Owned
Domestic Subsidiary. In addition, each new Wholly-Owned Domestic Subsidiary
that is required to execute a counterpart of the Guaranty shall execute and
deliver or cause to be executed and delivered, all other relevant documentation
(including opinions of counsel) of the type described in Section 8 as such
new Wholly-Owned Domestic Subsidiary would have had to deliver if such new
Wholly-Owned Domestic Subsidiary were a Credit Party on the Borrowing Date.

All Security Documents evidencing the security
required pursuant to the immediately preceding clause (a) shall be
mutually agreed and otherwise in form and substance satisfactory to the
Administrative Agent, and shall effectively create first priority security
interests in the property purported to be covered thereby, with such exceptions
as are acceptable to the Administrative Agent in its reasonable discretion.

SECTION 3.   Representations
and Warranties.   The Borrower represents and warrants to the
Administrative Agent and to each of the Lenders that:

(a)    This
Amendment No. 1 has been duly executed and delivered by the Borrower and
constitutes its legal, valid and binding obligation enforceable in accordance
with its terms, except to the extent that the enforceability thereof may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or
other similar laws generally affecting creditors’ rights and by equitable
principles (regardless of whether enforcement is sought in equity or at law).

(b)   After
giving effect to this Amendment No. 1, the representations and warranties
of each Credit Party set forth in the Credit Documents are true and correct in all
material respects on and as of the Amendment No. 1 Effective Date, except
to the extent such representations and warranties expressly relate to an
earlier date (in which case such representations and warranties were true and
correct in all material respects as of such earlier date).

(c)    Immediately
after giving effect to this Amendment No. 1, no Default or Event of
Default has occurred and is continuing.

SECTION 4.   Conditions
to Effectiveness.   This Amendment No. 1 shall become
effective on the date on which each of the following conditions is satisfied:

(a)    The
Administrative Agent (or its counsel) shall have received from each of the
Required Lenders, the Borrower and the Guarantors, a counterpart of this
Amendment No. 1 signed on behalf of such party;

(b)   All
corporate and other proceedings taken or to be taken in connection with this
Amendment No. 1 and all documents incidental thereto, whether or not
referred to herein, shall be reasonably satisfactory in form and substance to
the Administrative Agent; and

 2
 

(c)    The
representations and warranties in Section 3 of this Amendment No. 1 shall
be true and correct.

Upon satisfaction of the conditions precedent set
forth above, the Administrative Agent shall promptly notify the Borrower, and
the Lenders of its determination that this Amendment No. 1 has become
effective which determination shall, absent manifest error, be conclusive and
binding on the Borrower and the Lenders for all purposes.

SECTION 5.   Credit Agreement.   Except
as expressly set forth herein, this Amendment No. 1 shall not by
implication or otherwise limit, impair, constitute a waiver of, or otherwise
affect the rights and remedies of the Lenders, the Administrative Agent, the
Borrower or any other Credit Party under the Credit Agreement or any other
Credit Document, and shall not alter, modify, amend or in any way affect any of
the terms, conditions, obligations, covenants or agreements contained in the
Credit Agreement or any other Credit Document, all of which are ratified and
affirmed in all respects and shall continue in full force and effect. Nothing
herein shall be deemed to entitle the Borrower to any future consent to, or
waiver, amendment, modification or other change of, any of the terms,
conditions, obligations, covenants or agreements contained in the Credit
Agreement or any other Credit Document in similar or different circumstances.
After the Amendment No. 1 Effective Date, any reference to the Credit
Agreement shall mean the Credit Agreement as modified hereby, provided that any
reference in the Credit Agreement to the date of the Credit Agreement, as
modified hereby, shall in all instances remain as of January 25, 2006, and
references in the Credit Agreement to “the date hereof” and “the date of this
Agreement,” and phrases of similar import, shall in all instances be and
continue to refer to January 25, 2005, and not the date of this Amendment No. 1.
This Amendment No. 1 shall constitute a “Credit Document” for all purposes
of the Credit Agreement and the other Credit Documents.

SECTION 6.   Governing Law.   THIS
AMENDMENT NO. 1 AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL
BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW
YORK. ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AMENDMENT NO. 1 MAY BE
BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE
SOUTHERN DISTRICT OF NEW YORK, IN EACH CASE WHICH ARE LOCATED IN THE COUNTY OF
NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AMENDMENT NO. 1, THE BORROWER
HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY
AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS.

SECTION 7.   Counterparts.   This
Amendment No. 1 may be executed in any number of counterparts and by the
different parties hereto on separate counterparts, each of which when so
executed and delivered shall be an original, but all of which shall together
constitute one and the same instrument. A set of counterparts executed by all
the parties hereto shall be lodged with the Borrower and the Administrative
Agent.

SECTION 8.   Headings.   The
headings of the several sections and subsections of this Amendment No. 1
are inserted for convenience only and shall not in any way affect the meaning
or construction of any provision of this Amendment No. 1.

SECTION 9.   Severability.   Any
provision of this Amendment No. 1 held to be invalid, illegal or
unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such invalidity, illegality or unenforceability
without affecting the validity, legality and enforceability of the remaining
provisions hereof; and the invalidity of a particular provision in a particular
jurisdiction shall not invalidate such provision in any other jurisdiction. The
parties shall endeavor in good-faith negotiations to replace the invalid,
illegal or unenforceable provisions with valid provisions, the economic effect
of which comes as close as possible to that of the invalid, illegal or
unenforceable provisions.

 3

IN WITNESS WHEREOF, the parties hereto have caused this
Amendment No. 1 to be duly executed by their respective authorized
officers as of the day and year first written above.

	
  

  	
  Shuffle Master, Inc.

  
	
   

  	
  By:

  	
  /s/ PAUL MEYER

  
	
   

  	
   

  	
  Name:

  	
  Paul Meyer

  
	
   

  	
   

  	
  Title:

  	
  President

  
	
   

  	
  DEUTSCHE BANK AG NEW
  YORK BRANCH,

  
	
   

  	
  Individually and as Administrative Agent

  
	
   

  	
  By:

  	
  /s/ STEVEN P. LAPHAM

  
	
   

  	
   

  	
  Name: Steven P. Lapham

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
  By:

  	
  /s/ MARY KAY
  COYLE

  
	
   

  	
   

  	
  Name: Mary Kay Coyle

  
	
   

  	
   

  	
  Title: Managing Director

  

 

 

 4
 

To Approve Amendment No. 1:

	
  DEUTSCHE BANK AG CAYMAN
  ISLANDS

  BRANCH, as a Lender

  
	
   

  	
  By:

  	
  /s/ STEVEN
  P. LAPHAM

  	
   

  
	
   

  	
   

  	
  Name: Steven P. Lapham

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
  By:

  	
  /s/ MARY
  KAY COYLE

  	
   

  
	
   

  	
   

  	
  Name: Mary Kay Coyle

  
	
   

  	
   

  	
  Title: Managing Director

  

 

 5Exhibit 10.1

 

EXECUTION COPY

 

$325,000,000

 

AMENDED AND
RESTATED CREDIT AGREEMENT

 

among

 

PROTECTION
ONE, INC.,

 

PROTECTION ONE
ALARM MONITORING, INC.,

 

as Borrower,

 

The Several
Lenders

 

from Time to
Time Parties Hereto,

 

LASALLE BANK
NATIONAL ASSOCIATION,

 

as Syndication
Agent in connection with the Amendment and Restatement,

 

LEHMAN
COMMERCIAL PAPER INC.,

 

as Initial
Syndication Agent,

 

HARRIS NESBITT
FINANCING, INC., LASALLE BANK NATIONAL ASSOCIATION and

U.S. BANK NATIONAL ASSOCIATION,

 

as
Co-Documentation Agents,

 

and

 

BEAR STEARNS
CORPORATE LENDING INC.,

 

as
Administrative Agent

 

Dated as of
April 26, 2006

 

 

BEAR, STEARNS & CO. INC.,

as Sole Lead Arranger and Sole Bookrunner

in connection with the Amendment and Restatement

 

BEAR, STEARNS & CO. INC. and LEHMAN BROTHERS INC.,

as Initial Joint Lead Arrangers and Initial Joint Bookrunners

 

 

TABLE OF CONTENTS

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  SECTION 1.
  DEFINITIONS

  	
  2

  
	
   

  	
   

  	
   

  
	
  1.1.

  	
  Defined Terms

  	
  2

  
	
  1.2.

  	
  Other Definitional Provisions

  	
  29

  
	
   

  	
   

  	
   

  
	
  SECTION 2.
  AMOUNT AND TERMS OF TERM COMMITMENTS

  	
  29

  
	
   

  	
   

  	
   

  
	
  2.1.

  	
  Term Commitments

  	
  29

  
	
  2.2.

  	
  Procedure for Term Loan
  Borrowing

  	
  30

  
	
  2.3.

  	
  Repayment of Term Loans

  	
  30

  
	
   

  	
   

  	
   

  
	
  SECTION 3.
  AMOUNT AND TERMS OF REVOLVING COMMITMENTS

  	
  31

  
	
   

  	
   

  	
   

  
	
  3.1.

  	
  Revolving Commitments

  	
  31

  
	
  3.2.

  	
  Procedure for Revolving Loan
  Borrowing

  	
  31

  
	
  3.3.

  	
  Swingline Commitment

  	
  32

  
	
  3.4.

  	
  Procedure for Swingline
  Borrowing; Refunding of Swingline Loans

  	
  32

  
	
  3.5.

  	
  Commitment Fees, etc.

  	
  34

  
	
  3.6.

  	
  Termination or Reduction of
  Revolving Commitments

  	
  34

  
	
  3.7.

  	
  L/C Commitment

  	
  34

  
	
  3.8.

  	
  Procedure for Issuance of
  Letter of Credit

  	
  35

  
	
  3.9.

  	
  Fees and Other Charges

  	
  35

  
	
  3.10.

  	
  L/C Participations

  	
  35

  
	
  3.11.

  	
  Reimbursement Obligation of
  the Borrower

  	
  36

  
	
  3.12.

  	
  Obligations Absolute

  	
  37

  
	
  3.13.

  	
  Letter of Credit Payments

  	
  37

  
	
  3.14.

  	
  Applications

  	
  38

  
	
   

  	
   

  	
   

  
	
  SECTION 4.
  GENERAL PROVISIONS APPLICABLE TO LOANS AND LETTERS OF CREDIT

  	
  38

  
	
   

  	
   

  	
   

  
	
  4.1.

  	
  Optional Prepayments

  	
  38

  
	
  4.2.

  	
  Mandatory Prepayments and
  Commitment Reductions

  	
  38

  
	
  4.3.

  	
  Conversion and Continuation
  Options

  	
  40

  
	
  4.4.

  	
  Limitations on Eurodollar
  Tranches

  	
  40

  
	
  4.5.

  	
  Interest Rates and Payment Dates

  	
  41

  
	
  4.6.

  	
  Computation of Interest and
  Fees

  	
  41

  
	
  4.7.

  	
  Inability to Determine
  Interest Rate

  	
  42

  
	
  4.8.

  	
  Pro Rata Treatment and
  Payments

  	
  42

  
	
  4.9.

  	
  Requirements of Law

  	
  43

  
	
  4.10.

  	
  Taxes

  	
  45

  
	
  4.11.

  	
  Indemnity

  	
  47

  

 

 

	
  4.12.

  	
  Change of Lending Office

  	
  48

  
	
  4.13.

  	
  Replacement of Lenders

  	
  48

  
	
  4.14.

  	
  Evidence of Debt

  	
  49

  
	
  4.15.

  	
  Illegality

  	
  49

  
	
   

  	
   

  	
   

  
	
  SECTION 5.
  REPRESENTATIONS AND WARRANTIES

  	
  49

  
	
   

  	
   

  	
   

  
	
  5.1.

  	
  Financial Condition

  	
  50

  
	
  5.2.

  	
  No Change

  	
  50

  
	
  5.3.

  	
  Corporate Existence;
  Compliance with Law

  	
  50

  
	
  5.4.

  	
  Power; Authorization;
  Enforceable Obligations

  	
  50

  
	
  5.5.

  	
  No Legal Bar

  	
  51

  
	
  5.6.

  	
  Litigation

  	
  51

  
	
  5.7.

  	
  No Default

  	
  51

  
	
  5.8.

  	
  Ownership of Property; Liens

  	
  51

  
	
  5.9.

  	
  Intellectual Property

  	
  51

  
	
  5.10.

  	
  Taxes

  	
  52

  
	
  5.11.

  	
  Federal Regulations

  	
  52

  
	
  5.12.

  	
  Labor Matters

  	
  52

  
	
  5.13.

  	
  ERISA

  	
  52

  
	
  5.14.

  	
  Investment Company Act; Other
  Regulations

  	
  53

  
	
  5.15.

  	
  Subsidiaries

  	
  53

  
	
  5.16.

  	
  Use of Proceeds

  	
  53

  
	
  5.17.

  	
  Environmental Matters

  	
  53

  
	
  5.18.

  	
  Accuracy of Information, etc.

  	
  54

  
	
  5.19.

  	
  Security Documents

  	
  54

  
	
  5.20.

  	
  Solvency

  	
  55

  
	
  5.21.

  	
  Designated Senior Debt

  	
  56

  
	
  5.22.

  	
  Regulation H

  	
  56

  
	
   

  	
   

  	
   

  
	
  SECTION 6.
  CONDITIONS PRECEDENT

  	
  56

  
	
   

  	
   

  	
   

  
	
  6.1.

  	
  Conditions to Restatement
  Date

  	
  56

  
	
  6.2.

  	
  Conditions to Each Extension
  of Credit

  	
  60

  
	
   

  	
   

  	
   

  
	
  SECTION 7.
  AFFIRMATIVE COVENANTS

  	
  61

  
	
   

  	
   

  	
   

  
	
  7.1.

  	
  Financial Statements

  	
  61

  
	
  7.2.

  	
  Certificates; Other
  Information

  	
  61

  
	
  7.3.

  	
  Payment of Obligations

  	
  63

  
	
  7.4.

  	
  Maintenance of Existence;
  Compliance

  	
  63

  
	
  7.5.

  	
  Maintenance of Property;
  Insurance

  	
  63

  
	
  7.6.

  	
  Inspection of Property; Books
  and Records; Discussions

  	
  63

  
	
  7.7.

  	
  Notices

  	
  63

  
	
  7.8.

  	
  Environmental Laws

  	
  64

  
	
  7.9.

  	
  Interest Rate Protection

  	
  64

  
	
  7.10.

  	
  Additional Collateral, etc.

  	
  65

  

 

 

	
  7.11.

  	
  Further Assurances

  	
  66

  
	
   

  	
   

  	
   

  
	
  SECTION 8.
  NEGATIVE COVENANTS

  	
  67

  
	
   

  	
   

  	
   

  
	
  8.1.

  	
  Financial Condition Covenants

  	
  67

  
	
  8.2.

  	
  Indebtedness

  	
  69

  
	
  8.3.

  	
  Liens

  	
  71

  
	
  8.4.

  	
  Fundamental Changes

  	
  72

  
	
  8.5.

  	
  Disposition of Property

  	
  73

  
	
  8.6.

  	
  Restricted Payments

  	
  74

  
	
  8.7.

  	
  Capital Expenditures; Net
  Cash Investment Costs

  	
  75

  
	
  8.8.

  	
  Investments

  	
  76

  
	
  8.9.

  	
  Optional Payments and
  Modifications of Certain Debt Instruments

  	
  77

  
	
  8.10.

  	
  Transactions with Affiliates

  	
  77

  
	
  8.11.

  	
  Sales and Leasebacks

  	
  78

  
	
  8.12.

  	
  Hedge Agreements

  	
  78

  
	
  8.13.

  	
  Changes in Fiscal Periods

  	
  78

  
	
  8.14.

  	
  Negative Pledge Clauses

  	
  78

  
	
  8.15.

  	
  Clauses Restricting
  Subsidiary Distributions

  	
  79

  
	
  8.16.

  	
  Lines of Business

  	
  79

  
	
  8.17.

  	
  Limitations on the Activities
  of Holdings

  	
  79

  
	
   

  	
   

  	
   

  
	
  SECTION 9.
  EVENTS OF DEFAULT

  	
  80

  
	
   

  	
   

  	
   

  
	
  SECTION 10.
  THE AGENTS

  	
  83

  
	
   

  	
   

  	
   

  
	
  10.1.

  	
  Appointment

  	
  83

  
	
  10.2.

  	
  Delegation of Duties

  	
  83

  
	
  10.3.

  	
  Exculpatory Provisions

  	
  84

  
	
  10.4.

  	
  Reliance by Agents

  	
  84

  
	
  10.5.

  	
  Notice of Default

  	
  84

  
	
  10.6.

  	
  Non-Reliance on Agents and
  Other Lenders

  	
  85

  
	
  10.7.

  	
  Indemnification

  	
  85

  
	
  10.8.

  	
  Agent in Its Individual
  Capacity

  	
  86

  
	
  10.9.

  	
  Successor Administrative
  Agent

  	
  86

  
	
  10.10.

  	
  Agents Generally

  	
  86

  
	
  10.11.

  	
  The Lead Arrangers

  	
  87

  
	
  10.12.

  	
  Withholding Tax

  	
  87

  
	
  10.13.

  	
  Intercreditor Agreement

  	
  87

  
	
   

  	
   

  	
   

  
	
  SECTION 11.
  MISCELLANEOUS

  	
  87

  
	
   

  	
   

  	
   

  
	
  11.1.

  	
  Amendments and Waivers

  	
  87

  
	
  11.2.

  	
  Notices

  	
  89

  
	
  11.3.

  	
  No Waiver; Cumulative
  Remedies

  	
  90

  
	
  11.4.

  	
  Survival of Representations
  and Warranties

  	
  90

  
	
  11.5.

  	
  Payment of Expenses and Taxes

  	
  90

  

 

 

	
  11.6.

  	
  Successors and Assigns;
  Participations and Assignments

  	
  92

  
	
  11.7.

  	
  Adjustments; Set-off

  	
  95

  
	
  11.8.

  	
  Counterparts

  	
  95

  
	
  11.9.

  	
  Severability

  	
  96

  
	
  11.10.

  	
  Integration

  	
  96

  
	
  11.11.

  	
  GOVERNING
  LAW

  	
  96

  
	
  11.12.

  	
  Submission To Jurisdiction;
  Waivers

  	
  96

  
	
  11.13.

  	
  Acknowledgments

  	
  97

  
	
  11.14.

  	
  Releases of Guarantees and
  Liens

  	
  97

  
	
  11.15.

  	
  Confidentiality

  	
  97

  
	
  11.16.

  	
  WAIVERS
  OF JURY TRIAL

  	
  98

  
	
  11.17.

  	
  Delivery of Addenda

  	
  98

  
	
  11.18.

  	
  Subordination of Intercompany
  Indebtedness

  	
  98

  
	
  11.19.

  	
  USA PATRIOT Act

  	
  98

  
	
  11.20.

  	
  Amendment and Restatement

  	
  98

  

 

	
  ANNEX:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  A

  	
  Pricing Grid

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULES:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  1.1(a)

  	
  Allotted Dispositions

  	
   

  
	
  1.1(b)

  	
  Mortgaged Intellectual Property

  	
   

  
	
  1.1(c)

  	
  Mortgaged Real Property

  	
   

  
	
  5.4

  	
  Consents, Authorizations, Filings and Notices

  	
   

  
	
  5.15

  	
  Subsidiaries

  	
   

  
	
  5.19(a)

  	
  UCC Filing Jurisdictions

  	
   

  
	
  5.19(b)

  	
  Mortgage Filing Jurisdictions

  	
   

  
	
  8.8

  	
  Closing Date Investments

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBITS:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  A

  	
  Form
  of Compliance Certificate

  	
   

  
	
  B

  	
  Form
  of Restatement Date Certificate

  	
   

  
	
  C

  	
  Form
  of Amended Mortgage

  	
   

  
	
  D

  	
  Form
  of Assignment and Assumption

  	
   

  
	
  E

  	
  Form
  of Legal Opinion of Kirkland & Ellis LLP

  	
   

  
	
  F

  	
  Form
  of Reinvestment Notice

  	
   

  
	
  G

  	
  Form
  of Exemption Certificate

  	
   

  
	
  H-1

  	
  Form
  of Term Note

  	
   

  
	
  H-2

  	
  Form
  of Revolving Note

  	
   

  
	
  H-3

  	
  Form
  Swingline Note

  	
   

  
	
  I

  	
  Form
  of Addendum

  	
   

  

 

 

	
  J

  	
  Form
  of Subordinated Intercompany Note

  	
   

  
	
  K

  	
  Form
  of Solvency Certificate

  	
   

  
	
  L

  	
  Form
  of Financial Status Certificate

  	
   

  
	
  M

  	
  Form
  of Reaffirmation Agreement

  	
   

  
	
  N

  	
  Form
  of Intercreditor Agreement

  	
   

  

 

 

AMENDED AND RESTATED CREDIT AGREEMENT, dated
as of April 26, 2006, among PROTECTION ONE, INC., a Delaware corporation (“Holdings”),
PROTECTION ONE ALARM MONITORING, INC., a Delaware corporation (the “Borrower”),
the several banks and other financial institutions or entities from time to
time parties to this Agreement (the “Lenders”), BEAR, STEARNS & CO.
INC. (“Bear Stearns”), as sole lead arranger and sole bookrunner in
connection with the Amendment and Restatement (in such capacity, the “Lead
Arranger”), Bear Stearns and LEHMAN BROTHERS INC. (“Lehman Brothers”),
as initial joint lead arrangers and initial joint bookrunners (in such
capacity, collectively, the “Initial Lead Arrangers”), LASALLE BANK
NATIONAL ASSOCIATION (“LaSalle”), as syndication agent in connection
with the Amendment and Restatement (in such capacity, and together with its
successors in such capacity, the “Syndication Agent”), LEHMAN COMMERCIAL
PAPER INC. (“LCP”), as initial syndication agent (in such capacity, the
“Initial Syndication Agent”), HARRIS NESBITT FINANCING, INC. (“Harris
Nesbitt”), LaSalle and U.S. BANK NATIONAL ASSOCIATION (“U.S. Bank”),
as co-documentation agents (in such capacity, and together with their respective
successors in such capacity, the “Co-Documentation Agents”), and BEAR
STEARNS CORPORATE LENDING INC. (“BSCL”), as administrative agent (in
such capacity, and together with its successors in such capacity, the “Administrative
Agent”).

 

RECITALS:

 

WHEREAS,
capitalized terms used in these Recitals shall have the respective meanings set
forth for such terms in Section 1.1 hereof;

 

WHEREAS,
the Borrower, Holdings, certain banks and other financial institutions (the “Existing
Lenders”), Bear Stearns and Lehman Brothers, as Initial Lead Arrangers,
LCP, as Initial Syndication Agent, Harris Nesbitt, LaSalle and U.S. Bank, as
Co-Documentation Agents, and BSCL as Administrative Agent, are parties to that
certain Credit Agreement dated as of April 18, 2005 (the “Original Credit
Agreement”), pursuant to which the Existing Lenders extended certain senior
credit facilities to the Borrower;

 

WHEREAS, the Borrower
desires that certain of the Existing Lenders and other parties hereto agree to
amend and restate the Original Credit Agreement in its entirety to:  (i) establish new Term Loans to be made
hereunder; and (ii) make certain other changes as more fully set forth herein,
which amendment and restatement shall become effective upon the Restatement
Date;

 

WHEREAS, the Required
Lenders have, on or prior to the Restatement Date, authorized the
Administrative Agent to execute this Agreement on behalf of all Existing
Lenders;

 

WHEREAS, the Majority
Facility Lenders under the Revolving Facility have, on or prior to the Restatement
Date, authorized the Administrative Agent to execute this Agreement on behalf
of all Revolving Lenders; and

 

WHEREAS, the Term Lenders party hereto have
agreed to make new Term Loans hereunder in an amount up to their respective
Term Commitments in accordance with

 

1

 

Section 2.1 herein, the
proceeds of which shall be used to repay in full the Existing Term Loans on the
Restatement Date, to make cash dividends to equityholders as contemplated by
Section 5.16 herein and to pay special management bonuses in connection with
such cash dividends.

 

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

 

SECTION 1.  DEFINITIONS

 

1.1.          Defined Terms.  As used in this Agreement, the terms listed
in this Section 1.1 shall have the respective meanings set forth in this
Section 1.1.

 

“Acquired Entity”:  as defined in the definition of “Permitted
Acquisition”.

 

“Addendum:”  an instrument, substantially in the form of
Exhibit I, by which a Lender becomes a party to this Agreement as of the
Restatement Date.

 

“Adjustment Date”:  as defined in the Pricing Grid.

 

“Administrative Agent”:  as defined in the preamble to this Agreement.

 

“Affiliate”:  as to any Person, any other Person that,
directly or indirectly, is in control of, is controlled by, or is under common
control with, such Person.  For purposes
of this definition, “control” of a Person means the power, directly or indirectly,
either to (a) vote 10% or more of the securities having ordinary voting power
for the election of directors (or persons performing similar functions) of such
Person or (b) direct or cause the direction of the management and policies of
such Person, whether by contract or otherwise.

 

“Agents”:  the collective reference to the Syndication
Agent, the Initial Syndication Agent, the Co-Documentation Agents, the Lead
Arranger, the Initial Lead Arrangers and the Administrative Agent, which term
shall include, for purposes of Section 10 only, the Issuing Lender.

 

“Aggregate Exposure”:  with respect to any Lender at any time, an
amount equal to (a) until the Restatement Date, the aggregate amount of
such Lender’s Commitments at such time and (b) thereafter, the sum of (i)
the aggregate then unpaid principal amount of such Lender’s Term Loans and (ii)
the amount of such Lender’s Revolving Commitment then in effect or, if the
Revolving Commitments have been terminated, the amount of such Lender’s
Revolving Extensions of Credit then outstanding.

 

“Aggregate Exposure Percentage”:  with respect to any Lender at any time, the
ratio (expressed as a percentage) of such Lender’s Aggregate Exposure at such
time to the Aggregate Exposure of all Lenders at such time.

 

“Agreement”:  this Amended and Restated Credit Agreement.

 

2

 

“Allotted Dispositions”:  (a) prior to the first anniversary of the
Closing Date, the Disposition of those customer contracts or alarm monitoring
operations that are described on Schedule 1.1(a); and (b) during each year
thereafter, Dispositions of customer contracts or alarm monitoring operations
for cash proceeds not to exceed $25,000,000 in any one fiscal year; provided
that no more than $50,000,000 of Allotted Dispositions pursuant to this clause
(b) shall be permitted in the aggregate.

 

“Applicable Margin”:  for each Type of Loan, the rate per annum set
forth under the relevant column heading below:

 

	
   

  	
   

  	
  Eurodollar Loans

  	
   

  	
  Base Rate Loans

  	
   

  
	
  Revolving Loans and Swingline Loans

  	
   

  	
  3.25

  	
  %

  	
  2.25

  	
  %

  
	
  Term Loans

  	
   

  	
  2.50

  	
  %

  	
  1.50

  	
  %

  

 

provided,
that, on and after the first Adjustment Date (as defined in the Pricing Grid)
occurring after the completion of two full fiscal quarters of the Borrower
after the Closing Date, the Applicable Margin with respect to Revolving Loans
and Swingline Loans will be determined pursuant to the Pricing Grid.

 

“Application”:  an application, in such form as the Issuing
Lender may specify from time to time, requesting the Issuing Lender to open a
Letter of Credit.

 

“Approved Fund”:  (a) a CLO and (b) with respect to any Lender
that is a fund which invests in commercial loans, any other fund that invests
in commercial loans and is managed or advised by the same investment advisor as
such Lender or by an Affiliate of such investment advisor.

 

“Asset Sale”:  any Disposition of Property or series of
related Dispositions of Property (excluding any such Disposition permitted by
Section 8.5) that yields gross proceeds to any Group Member (valued at the
initial principal amount thereof in the case of non-cash proceeds consisting of
notes or other debt securities and valued at fair market value in the case of
other non-cash proceeds) in excess of $500,000.

 

“Assignee”:  as defined in Section 11.6(b).

 

“Assignment and Assumption”:  an Assignment and Assumption, substantially
in the form of Exhibit D.

 

“Available Revolving Commitment”:  as to any Revolving Lender at any time, an
amount equal to the excess, if any, of (a) such Lender’s Revolving Commitment
then in effect minus (b) such Lender’s Revolving Extensions of Credit
then outstanding; provided that, in calculating any Lender’s Revolving
Extensions of Credit for the purpose of determining such Lender’s Available
Revolving Commitment pursuant to Section 3.5, the aggregate principal amount of
Swingline Loans then outstanding shall be deemed to be zero.

 

3

 

“Base Rate”:  for any day, a rate per annum (rounded
upwards, if necessary, to the next 1/16 of 1%) equal to the greater of (a) the
Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in
effect on such day plus 0.50%.  For
purposes hereof:  “Prime Rate”
shall mean the rate of interest per annum publicly announced from time to time
by the Reference Bank as its prime rate in effect at its principal office in
New York City (the Prime Rate not being intended to be the lowest rate of
interest charged by the Reference Bank in connection with extensions of credit
to debtors).  Any change in the Base Rate
due to a change in the Prime Rate or the Federal Funds Effective Rate shall be
effective as of the opening of business on the effective day of such change in
the Prime Rate or the Federal Funds Effective Rate, respectively.

 

“Base Rate Loans”:  Loans the rate of interest applicable to
which is based upon the Base Rate.

 

“Benefited Lender”:  as defined in Section 11.7(a).

 

“Board”:  the Board of Governors of the Federal Reserve
System of the United States (or any successor).

 

“Borrower”: 
as defined in the preamble to this Agreement.

 

“Borrowing Date”:  any Business Day specified by the Borrower as
a date on which the Borrower requests the relevant Lenders to make Loans
hereunder.

 

“Business”:  as defined in Section 5.17(b).

 

“Business Day”:  a day other than a Saturday, Sunday or other
day on which commercial banks in New York City are authorized or required by
law to close, provided, that with respect to notices and determinations
in connection with, and payments of principal and interest on, Eurodollar
Loans, such day is also a day for trading by and between banks in Dollar
deposits in the interbank eurodollar market.

 

“Capital Expenditures”:  for any period, with respect to any Person,
the aggregate of all expenditures by such Person and its Subsidiaries for the
acquisition or leasing (pursuant to a capital lease) of fixed or capital assets
or additions to equipment (including replacements, capitalized repairs and
improvements during such period) that should be capitalized under GAAP on a consolidated
balance sheet of such Person and its Subsidiaries; provided, that
Capital Expenditures shall not include expenditures included in the definition
of Net Cash Investment Costs.

 

 “Capital
Lease Obligations”:  as to any
Person, the obligations of such Person to pay rent or other amounts under any
lease of (or other arrangement conveying the right to use) real or personal
property, or a combination thereof, which obligations are required to be
classified and accounted for as capital leases on a balance sheet of such
Person under GAAP and, for the purposes of this Agreement, the amount of such
obligations at any time shall be the capitalized amount thereof at such time
determined in accordance with GAAP.

 

4

 

“Capital Stock”:  any and all shares, interests, participations
or other equivalents (however designated) of capital stock of a corporation,
any and all equivalent ownership interests in a Person (other than a
corporation) and any and all warrants, rights or options to purchase any of the
foregoing.

 

“Cash Equivalents”:  (a) marketable direct obligations issued by,
or unconditionally guaranteed by, the United States government or issued by any
agency thereof and backed by the full faith and credit of the United States, in
each case maturing within one year from the date of acquisition;
(b) certificates of deposit, time deposits, eurodollar time deposits or
overnight bank deposits having maturities of twelve months or less from the
date of acquisition issued by any Lender or by any commercial bank organized
under the laws of the United States or any state thereof having combined
capital and surplus of not less than $500,000,000; (c) commercial paper of an
issuer rated at least A-2 by Standard & Poor’s Ratings Services (“S&P”)
or P-2 by Moody’s Investors Service, Inc. (“Moody’s”), or carrying an
equivalent rating by a nationally recognized rating agency, if both of the two
named rating agencies cease publishing ratings of commercial paper issuers
generally, and maturing within twelve months from the date of acquisition; (d)
repurchase obligations of any Lender or of any commercial bank satisfying the
requirements of clause (b) of this definition or of a recognized securities
dealer having combined capital and surplus of not less than $500,000,000,
having a term of not more than 30 days, with respect to securities issued or
fully guaranteed or insured by the United States government; (e) securities
with maturities of one year or less from the date of acquisition issued or
fully guaranteed by any state, commonwealth or territory of the United States,
by any political subdivision or taxing authority of any such state,
commonwealth or territory or by any foreign government, the securities of which
state, commonwealth, territory, political subdivision, taxing authority or
foreign government (as the case may be) are rated at least A by S&P or A by
Moody’s; (f) securities with maturities of six months or less from the date of
acquisition backed by standby letters of credit issued by any Lender or any
commercial bank satisfying the requirements of clause (b) of this definition;
or (g) shares of money market mutual or similar funds which invest exclusively
in assets satisfying the requirements of clauses (a) through (f) of this
definition or money market funds that (i) comply with the criteria set forth in
Securities and Exchange Commission Rule 2a-7 under the Investment Company Act
of 1940, as amended, (ii) are rated AAA by S&P and Aaa by Moody’s and (iii)
have portfolio assets of at least $5,000,000,000.

 

“CLO”: any entity (whether a
corporation, partnership, trust or otherwise) that is engaged in making,
purchasing, holding or otherwise investing in bank loans and similar extensions
of credit in the ordinary course of its business and is administered or managed
by a Lender or an Affiliate of such Lender.

 

“Closing Date”:  April 18, 2005.

 

“Code”:  the Internal Revenue Code of 1986, as amended
from time to time.

 

“Co-Documentation Agents”:  as defined in the preamble to this Agreement.

 

5

 

“Collateral”:  all property of the Loan Parties, now owned
or hereafter acquired, upon which a Lien is purported to be created by any
Security Document.

 

“Commitment”:  as to any Lender, the sum of the Term
Commitment and the Revolving Commitment of such Lender.

 

“Commitment Fee Rate”:  0.50% per annum.

 

“Commonly Controlled Entity”:  an entity, whether or not incorporated, that
is under common control with the Borrower within the meaning of Section 4001 of
ERISA or is part of a group that includes the Borrower and that is treated as a
single employer under Section 414 of the Code.

 

“Compliance Certificate”:  a certificate duly executed by a Responsible
Officer substantially in the form of Exhibit A.

 

“Conduit Lender”:  any special purpose entity organized and
administered by any Lender for the purpose of making Loans otherwise required
to be made by such Lender and designated by such Lender in a written
instrument, subject to the consent of the Administrative Agent and the Borrower
(which consent shall not be unreasonably withheld); provided, that the
designation by any Lender of a Conduit Lender shall not relieve the designating
Lender of any of its obligations to fund a Loan under this Agreement if, for
any reason, its Conduit Lender fails to fund any such Loan, and the designating
Lender (and not the Conduit Lender) shall have the sole right and
responsibility to deliver all consents and waivers required or requested under
this Agreement with respect to its Conduit Lender, and provided, further,
that no Conduit Lender shall (a) be entitled to receive any greater amount
pursuant to Section 4.9, 4.10, 4.11 or 11.5 than the designating Lender would
have been entitled to receive in respect of the extensions of credit made by
such Conduit Lender or (b) be deemed to have any Commitment.

 

“Confidential Information Memorandum”:  the Confidential Information Memorandum dated
March 2005 and furnished to the Lenders.

 

“Consolidated Current Assets”:  at any date, all amounts (other than cash and
Cash Equivalents) that would, in conformity with GAAP, be set forth opposite
the caption “total current assets” (or any like caption) on a consolidated
balance sheet of Holdings and its Subsidiaries at such date.

 

“Consolidated Current Liabilities”:  at any date, all amounts that would, in
conformity with GAAP, be set forth opposite the caption “total current
liabilities” (or any like caption) on a consolidated balance sheet of Holdings
and its Subsidiaries at such date, but excluding (a) the current portion of any
Funded Debt of Holdings and its Subsidiaries and (b) without duplication of
clause (a) above, all Indebtedness consisting of Revolving Loans or Swingline
Loans to the extent otherwise included therein.

 

“Consolidated EBITDA”:  for any period, Consolidated Net Income for
such period

 

6

 

plus,
without duplication and to the extent reflected as a charge in the statement of
such Consolidated Net Income for such period (except in the case of (i) below),
the sum of:

 

 (a)
income tax expense (including, without duplication, franchise and foreign
withholding taxes and any state single business unitary or similar tax, to the
extent classified as income tax expense on the consolidated income statement of
Holdings and its Subsidiaries in accordance with GAAP),

 

(b) interest expense, amortization or
write-off of debt discount and debt issuance costs and commissions, discounts
and other fees and charges associated with Indebtedness (including the Loans),

 

(c) depreciation and amortization expense,

 

(d) amortization of intangibles (including,
but not limited to, goodwill), deferred customer acquisition costs and
organization costs,

 

(e) any extraordinary charges, expenses or
losses determined in accordance with GAAP,

 

(f) non-cash compensation expenses arising
from the issuance, vesting or exercise of stock, options to purchase stock,
stock appreciation rights and other equity awards to the management, directors,
officers, consultants and other employees of Holdings or any of its
Subsidiaries,

 

(g) any other noncash charges, noncash
expenses or noncash losses of the Borrower or any of its Subsidiaries for such
period (excluding any such charge, expense or loss incurred in the ordinary
course of business that constitutes an accrual of or a reserve for cash charges
for any future period); provided, however, that cash payments
made in such period or in any future period in respect of such noncash charges,
expenses or losses incurred after the Closing Date (excluding any such charge,
expense or loss incurred in the ordinary course of business that constitutes an
accrual of or a reserve for cash charges for any future period) shall be
subtracted from Consolidated Net Income in calculating Consolidated EBITDA in
the period when such payments are made,

 

(h) all reasonable one-time costs, fees,
expenses and charges related to this refinancing and the dividend to
stockholders contemplated by Section 5.16 hereof, any permitted Investment,
Permitted Acquisition, issuance of equity, recapitalization, reorganization or
asset disposition,

 

(i) cash proceeds of business interruption
insurance,

 

(j) management and transaction fees and
related expenses paid under the Management Agreement substantially in the form
most recently delivered to the Administrative Agent prior to the Closing Date,
and without further modification thereto as to amounts payable thereunder,

 

7

 

(k) any non-recurring charges, expenses or
losses not exceeding, together with expenses under clause (l), $1.75 million in
each of calendar years 2005 and 2006, and $1.0 million in each calendar year
thereafter,

 

(l) expenses incurred in work force
reductions such as severance, key employee retention plans, and unfavorable
lease payments or accruals for such payments not exceeding, together with
amounts under clause (k), $1.75 million in each of calendar years 2005 and
2006, and $1.0 million in each calendar year thereafter, and

 

(m) bonuses paid to members of management of
the Borrower or Holdings pursuant to Section 8.6(e),

 

minus,
to the extent included in the statement of such Consolidated Net Income for
such period, the sum of:

 

(i) interest income,

 

(ii) any extraordinary income or gains determined
in accordance with GAAP, and

 

(iii) any other non-cash income (excluding
(x) any items that represent the reversal of any accrual of, or cash reserve
for, anticipated cash charges in any prior period that are described in the
parenthetical to clause (g) above and (y) items representing ordinary course
accruals of cash to be received in future periods), all as determined on a
consolidated basis.

 

For the purposes of calculating Consolidated
EBITDA for any period of four consecutive fiscal quarters (each, a “Reference
Period”) pursuant to any determination of the Consolidated Leverage Ratio,
(i) if at any time during such Reference Period the Borrower or any Subsidiary
shall have made any Material Disposition, the Consolidated EBITDA for such
Reference Period shall be reduced by an amount equal to the Consolidated EBITDA
(if positive) attributable to the property that is the subject of such Material
Disposition for such Reference Period or increased by an amount equal to the
Consolidated EBITDA (if negative) attributable thereto for such Reference
Period and (ii) if during such Reference Period the Borrower or any Subsidiary
shall have made a Material Acquisition, Consolidated EBITDA for such Reference
Period shall be calculated after giving pro  forma effect thereto
as if such Material Acquisition occurred on the first day of such Reference
Period.  As used in this definition, “Material
Acquisition” means any acquisition of property or series of related
acquisitions of property that (a) constitutes assets comprising all or
substantially all of an operating unit of a business or constitutes all or
substantially all of the common stock of a Person and (b) involves the payment
of consideration by the Borrower and its Subsidiaries in excess of $5,000,000;
and “Material Disposition” means any Disposition of property or series of
related Dispositions of property that yields gross proceeds to the Borrower or
any of its Subsidiaries in excess of $5,000,000.

 

“Consolidated Interest Coverage Ratio”:  for any period, the ratio of (a) Consolidated
EBITDA for such period to (b) Consolidated Interest Expense for such period.

 

8

 

“Consolidated Interest Expense”:  for any period, total cash interest expense
(including that attributable to Capital Lease Obligations) of Holdings and its
Subsidiaries for such period with respect to all outstanding Indebtedness of
Holdings and its Subsidiaries (including all commissions, discounts and other
fees and charges owed with respect to letters of credit and bankers’ acceptance
financing and net costs under Hedge Agreements in respect of interest rates to
the extent such net costs are allocable to such period in accordance with
GAAP).

 

“Consolidated Leverage Ratio”:  as of the last day of any period, the ratio
of (a) Consolidated Total Debt on such day to (b) Consolidated EBITDA for
such period.

 

“Consolidated Net Income”:  for any period, the consolidated net income
(or loss) of Holdings and its Subsidiaries, determined on a consolidated basis
in accordance with GAAP; provided that there shall be excluded (a) the
income (or deficit) of any Person accrued prior to the date it becomes a
Subsidiary of the Borrower or is merged into or consolidated with the Borrower
or any of its Subsidiaries, (b) the income (or deficit) of any Person (other
than a Subsidiary of the Borrower) in which the Borrower or any of its
Subsidiaries has an ownership interest, except to the extent that any such
income is actually received by the Borrower or such Subsidiary in the form of
dividends or similar distributions and (c) the undistributed earnings of any
Subsidiary of the Borrower to the extent that the declaration or payment of
dividends or similar distributions by such Subsidiary is not at the time
permitted by the terms of any Contractual Obligation (other than under any Loan
Document) or Requirement of Law applicable to such Subsidiary.

 

“Consolidated Total Debt”:  at any date, the aggregate principal amount
of all Indebtedness of Holdings and its Subsidiaries at such date, determined
on a consolidated basis in accordance with GAAP.

 

“Consolidated Working Capital”:  at any date, the difference of Consolidated
Current Assets on such date minus Consolidated Current Liabilities on
such date.

 

“Continuing Directors”:  the directors of Holdings on the Closing
Date, after giving effect to the transactions contemplated hereby, and each
other director, if, in each case, such other director’s nomination for election
to the board of directors of Holdings is recommended by at least a majority of
the then Continuing Directors or such other director receives the vote of the
Permitted Investors in his or her election by the shareholders of Holdings.

 

“Continuing Lenders”:  a term loan lender under the Original Credit
Agreement that has delivered a signature page hereto indicating agreement to
continue as a Lender under this Agreement.

 

“Contractual Obligation”:  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.

 

9

 

“Control Investment Affiliate”:  as to any Person, any other Person that (a)
directly or indirectly, is in control of, is controlled by, or is under common
control with, such Person and (b) is organized by such Person primarily for the
purpose of making equity or debt investments in one or more companies.  For purposes of this definition, “control” of
a Person means the power, directly or indirectly, to direct or cause the
direction of the management and policies of such Person whether by contract or
otherwise.

 

“Default”:  any of the events specified in
Section 9, whether or not any requirement set forth in Section 9 for the
giving of notice, the lapse of time, or both, has been satisfied.

 

“Disposition”:  with respect to any Property, any sale,
lease, sale and leaseback, assignment, conveyance, transfer or other
disposition thereof.  The terms “Dispose”
and “Disposed of” shall have correlative meanings.

 

 “Dollars”
and “$”:  dollars in lawful
currency of the United States.

 

“Domestic Subsidiary”:  any Subsidiary of the Borrower organized
under the laws of any jurisdiction within the United States.

 

“ECF Percentage”:  with respect to any fiscal year of Holdings
ending on or after December 31, 2007, 75%; provided that the ECF
Percentage shall be reduced to 50% if the Consolidated Leverage Ratio as of the
last day of such fiscal year is less than 3.0 to 1.0, and the ECF Percentage
shall be further reduced to 25% if the Consolidated Leverage Ratio as of the
last day of such fiscal year is less than 2.0 to 1.0.

 

“Eligible Assignee” : (a) a commercial
bank organized under the laws of the United States, or any state thereof, and
having a combined capital and surplus of at least $100,000,000; (b) a
commercial bank organized under the laws of any other country that is a member
of the Organization for Economic Cooperation and Development (the “OECD”), or a
political subdivision of any such country, and having a combined capital and
surplus in a dollar equivalent amount of at least $100,000,000; provided,
however, that such bank is acting through a branch or agency located in
the country in which it is organized or another country that is also a member
of the OECD; (c) an insurance company, mutual fund or other entity which is
regularly engaged in making, purchasing or investing in loans or securities, or
any other financial institution organized under the laws of the United States,
any state thereof, any other country that is a member of the OECD or a
political subdivision of any such country with assets, or assets under
management, in a dollar equivalent amount of at least $100,000,000; (d) any
Affiliate of a Lender or an Approved Fund of a Lender; (e) any other entity
(other than a natural person) which is an “accredited investor” (as defined in
Regulation D under the Securities Act) which extends credit or buys loans as
one of its businesses or investing activities including, but not limited to,
insurance companies, mutual funds and investment funds; (f) any other entity if
at the time of the applicable assignment a Default or Event of Default shall be
continuing and (g) any other entity consented to by the Administrative Agent
and the Borrower.

 

10

 

“Environmental Laws”:  any and all applicable foreign, Federal,
state, local or municipal laws, rules, orders, regulations, statutes,
ordinances, codes, decrees, requirements of any Governmental Authority or other
Requirements of Law (including common law) regulating, relating to or imposing
liability or standards of conduct concerning occupational safety and health or
protection of the environment, as now or may at any time hereafter be in effect.

 

“ERISA”:  the Employee Retirement Income Security Act
of 1974, as amended from time to time.

 

“Eurocurrency Reserve Requirements”:  for any day as applied to a Eurodollar Loan,
the aggregate (without duplication) of the maximum rates (expressed as a decimal
fraction) of reserve requirements in effect on such day (including basic,
supplemental, marginal and emergency reserves under any regulations of the
Board or other Governmental Authority having jurisdiction with respect thereto)
dealing with reserve requirements prescribed for eurocurrency funding
(currently referred to as “Eurocurrency Liabilities” in Regulation D of the
Board) maintained by a member bank of the Federal Reserve System.

 

“Eurodollar Base Rate”:  with respect to each day during each Interest
Period pertaining to a Eurodollar Loan, the rate per annum determined on the
basis of the rate for deposits in Dollars for a period equal to such Interest
Period commencing on the first day of such Interest Period appearing on Page
3750 of the Telerate screen as of 11:00 A.M., London time, two Business Days
prior to the beginning of such Interest Period. 
In the event that such rate does not appear on Page 3750 of the Telerate
screen (or otherwise on such screen), the “Eurodollar Base Rate” shall
be determined by reference to such other comparable publicly available service
for displaying eurodollar rates as may be selected by the Administrative Agent
or, in the absence of such availability, by reference to the rate at which the
Administrative Agent is offered Dollar deposits at or about 11:00 A.M., New
York City time, two Business Days prior to the beginning of such Interest
Period in the interbank eurodollar market where its eurodollar and foreign
currency and exchange operations are then being conducted for delivery on the
first day of such Interest Period for the number of days comprised therein.

 

“Eurodollar Loans”:  Loans the rate of interest applicable to
which is based upon the Eurodollar Rate.

 

“Eurodollar Rate”:  with respect to each day during each Interest
Period pertaining to a Eurodollar Loan, a rate per annum determined for such
day in accordance with the following formula (rounded upward to the nearest
1/100th of 1%):

 

	
   

  	
  Eurodollar Base Rate

  	
   

  
	
   

  	
  1.00 - Eurocurrency Reserve Requirements

  	
   

  
					

 

“Eurodollar Tranche”:  the collective reference to Eurodollar Loans
under a particular Facility the then current Interest Periods with respect to
all of which begin on the same date and end on the same later date (whether or
not such Loans shall originally have been made on the same day).

 

11

 

“Event of Default”:  any of the events specified in Section 9, provided
that any requirement specified in Section 9 for the giving of notice, the lapse
of time, or both, has been satisfied.

 

“Excess Cash Flow”:  for any fiscal year of Holdings, the excess,
if any, of:

 

(a) the sum, without duplication, of:

 

(i)
Consolidated Net Income for such fiscal year,

 

(ii) the amount of all non-cash charges deducted in arriving at such
Consolidated Net Income, other than any charges that represent an accrual of a
reserve for cash charges for any future period,

 

(iii) depreciation and amortization expense,

 

(iv) amortization of intangibles (including, but not limited to,
goodwill), deferred customer acquisition costs and organization costs,

 

(v) the increase in long-term liabilities excluding (a) the long-term
portion of debt, (b) the long-term portion of Capital Lease Obligations, and
(c) deferred customer acquisition revenues for such fiscal year,

 

(vi) the aggregate net amount of non-cash loss on the Disposition of
Property by Holdings and its Subsidiaries during such fiscal year (other than
sales of inventory in the ordinary course of business), to the extent deducted
in arriving at such Consolidated Net Income,

 

(v) cash proceeds of business interruption insurance,

 

(vi) the decrease in Consolidated Working Capital for such fiscal year,
and

 

(vii) the
decrease in long-term assets excluding (a) property, plant and equipment, (b)
purchased accounts, (c) goodwill, (d) intangible assets, (e) debt issuance
costs, and (f) deferred customer acquisition costs for such fiscal year, minus

 

(b)           the
sum, without duplication, of:

 

(i) the amount of all non-cash credits included in arriving at such Consolidated
Net Income,

 

(ii) the amortization of deferred customer acquisition revenue,

 

(iii) the aggregate amount actually paid by Holdings and its
Subsidiaries in cash, and expenditures for which payables have been recorded
but not yet paid, during such fiscal year on account of Capital Expenditures
(excluding the principal amount of Indebtedness incurred to finance such
expenditures (but including repayments of any

 

12

 

such Indebtedness incurring during such
period or any prior period) and any such expenditures financed with the
proceeds of any Reinvestment Deferred Amount),

 

(iv) the aggregate amount of all regularly scheduled principal payments
of Funded Debt (including the Term Loans) of Holdings and its Subsidiaries made
during such fiscal year (other than in respect of Revolving Loans and any other
revolving credit facility to the extent there is not an equivalent permanent
reduction in commitments thereunder),

 

(v) an amount equal to the deferred customer acquisition costs during
such fiscal year minus the deferred customer acquisition revenue during
such fiscal year,

 

(vi) the increase in Consolidated Working Capital for such fiscal year,

 

(vii) the increase in long-term assets excluding (a) property, plant
and equipment, (b) purchased accounts, (c) goodwill, (d) intangible assets, (e)
debt issuance costs, and (f) deferred customer acquisition costs for such
fiscal year,

 

(viii) the aggregate net amount of non-cash gain on the Disposition of
Property by Holdings and its Subsidiaries during such fiscal year (other than
sales of inventory in the ordinary course of business), to the extent included
in arriving at such Consolidated Net Income,

 

(ix) all reasonable one-time costs, fees, expenses and charges and
one-time payments constituting or related to any permitted Investments,
Permitted Acquisitions, or equity issuances to the extent not deducted in
arriving at such Consolidated Net Income,

 

(x) management and transaction fees and related expenses paid under the
Management Agreement (substantially in the form most recently delivered to the
Administrative Agent prior to the Closing Date, and without further
modification thereto as to amounts payable thereunder) to the extent not
deducted in arriving at such Consolidated Net Income,

 

(xi) Restricted Payments made in cash which were permitted to be made
under this Credit Agreement, and

 

(xii) the decrease in long-term liabilities excluding (a) the long-term
portion of debt, (b) the long-term portion of Capital Lease Obligations, and
(c) deferred customer acquisition revenues for such fiscal year.

 

To the extent any Person is disregarded from
the definition of “Consolidated Net Income” pursuant to the proviso thereto in
any period, such Person shall be so disregarded from the calculation of Excess
Cash Flow hereunder during such period. 
The aggregate amount of optional prepayments of the Term Loans, and
prepayments of Revolving Loans and Swingline Loans to the extent accompanied by
permanent reductions in Revolving Commitments, made during any fiscal year
shall reduce on a dollar-for-dollar basis the required amount of the

 

13

 

mandatory
prepayment to be made pursuant to Section 4.2(d) with respect to the Excess Cash
Flow for such fiscal year.

 

“Excess Cash Flow Application Date”:  as defined in Section 4.2.

 

“Excluded Indebtedness”:  all Indebtedness permitted by Section 8.2.

 

“Existing Lenders”:  as defined in the recitals to this Agreement.

 

“Existing Term Commitments”:  the term commitments made under the Original
Credit Agreement.

 

“Existing Term Loans”:  the term loans made under the Original Credit
Agreement outstanding immediately prior to the Restatement Date.

 

“Facility”:  each of (a) the Term Commitments and the Term
Loans made thereunder (the “Term Facility”), and (b) the Revolving
Commitments and the extensions of credit made thereunder (the “Revolving
Facility”).

 

“Federal Funds Effective Rate”:  for any day, the weighted average of the
rates on overnight federal funds transactions with members of the Federal
Reserve System arranged by federal funds brokers, as published on the next
succeeding Business Day by the Federal Reserve Bank of New York, or, if
such rate is not so published for any day that is a Business Day, the average
of the quotations for the day of such transactions received by the Reference
Lender from three federal funds brokers of recognized standing selected by it.

 

“Foreign Subsidiary”:  any Subsidiary of the Borrower that is not a
Domestic Subsidiary.

 

“Funded Debt”:  as to any Person, all Indebtedness of such
Person that has a scheduled maturity (excluding any mandatory prepayments) more
than one year from the date of its creation or matures within one year from
such date but is renewable or extendible, at the option of such Person, to a
date more than one year from such date or arises under a revolving credit or
similar agreement that obligates the lender or lenders to extend credit during
a period of more than one year from such date, including all current maturities
and current sinking fund payments in respect of such Indebtedness whether or
not required to be paid within one year from the date of its creation and, in
the case of the Borrower, Indebtedness in respect of the Loans.

 

“Funding Office”:  the office of the Administrative Agent
specified in Section 11.2 or such other office as may be specified from time to
time by the Administrative Agent as its funding office by written notice to the
Borrower and the Lenders.

 

“GAAP”:  generally accepted accounting principles in
the United States as in effect from time to time, except that for purposes of
Section 8.1, GAAP shall be determined on the basis of such principles in effect
on the date hereof and consistent with those used in the preparation of the
most recent audited financial statements referred to in Section 5.1(b).  In the

 

14

 

event that any
Accounting Change (as defined below) shall occur and such change results in a
change in the method of calculation of financial covenants, standards or terms
in this Agreement, then the Borrower and the Administrative Agent agree to
enter into negotiations in order to amend such provisions of this Agreement so
as to equitably reflect such Accounting Changes with the desired result that
the criteria for evaluating the Borrower’s financial condition shall be the
same after such Accounting Changes as if such Accounting Changes had not been
made.  Until such time as such an
amendment shall have been executed and delivered by the Borrower, the
Administrative Agent and the Required Lenders, all financial covenants,
standards and terms in this Agreement shall continue to be calculated or
construed as if such Accounting Changes had not occurred.  “Accounting Changes” refers to changes
in accounting principles required by the promulgation of any rule, regulation,
pronouncement or opinion by the Financial Accounting Standards Board of the
American Institute of Certified Public Accountants or, if applicable, the SEC.

 

“Governmental Authority”:  any nation or government, any state or other
political subdivision thereof, any agency, authority, instrumentality,
regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative functions of or
pertaining to government, any securities exchange and any self-regulatory
organization (including the National Association of Insurance Commissioners).

 

“Group Members”:  the collective reference to Holdings, the
Borrower and their respective Subsidiaries.

 

“Guarantee and Collateral Agreement”:  the Guarantee and Collateral Agreement, dated
as of the Closing Date, among Holdings, the Borrower and each Subsidiary
Guarantor.

 

“Guarantee Obligation”:  as to any Person (the “guaranteeing person”),
any obligation of (a) the guaranteeing person or (b) another Person (including
any bank under any letter of credit) to induce the creation of which the
guaranteeing person has issued a reimbursement, counterindemnity or similar
obligation, in either case guaranteeing or in effect guaranteeing any
Indebtedness, leases, dividends or other obligations (the “primary
obligations”) of any other third Person (the “primary obligor”) in
any manner, whether directly or indirectly, including any obligation of the
guaranteeing person, whether or not contingent, (i) to purchase any such
primary obligation or any property constituting direct or indirect security
therefor, (ii) to advance or supply funds (1) for the purchase or payment of
any such primary obligation or (2) to maintain working capital or equity
capital of the primary obligor or otherwise to maintain the net worth or
solvency of the primary obligor, (iii) 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 (iv) otherwise to assure or hold harmless the owner of
any such primary obligation against loss in respect thereof; provided, however,
that the term Guarantee Obligation shall not include endorsements of
instruments for deposit or collection in the ordinary course of business.  The amount of any Guarantee Obligation of any
guaranteeing person shall be deemed to be the lower of (a) an amount equal to
the stated or determinable amount of the primary obligation in respect of which
such Guarantee Obligation is made and (b) the maximum amount for which such
guaranteeing person may be liable pursuant to the terms of the instrument
embodying such Guarantee Obligation or, if

 

15

 

recourse is
limited to a specific asset, the fair market value of such asset, unless such
primary obligation and the maximum amount for which such guaranteeing person
may be liable are not stated or determinable, in which case the amount of such
Guarantee Obligation shall be such guaranteeing person’s maximum reasonably
anticipated liability in respect thereof as determined by the Borrower in good
faith.

 

“Guarantors”:  the collective reference to Holdings and the
Subsidiary Guarantors.

 

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

 

“Holdings”:  as defined in the preamble to this Agreement.

 

“Indebtedness”:  of any Person at any date, without
duplication, (a) all indebtedness of such Person for borrowed money, (b) all
obligations of such Person for the deferred purchase price of property or services
(other than current trade payables incurred in the ordinary course of such
Person’s business), (c) all obligations of such Person evidenced by notes,
bonds, debentures or other similar instruments, (d) all indebtedness created or
arising under any conditional sale or other title retention agreement with
respect to property acquired by such Person (even though the rights and
remedies of the seller or lender under such agreement in the event of default
are limited to repossession or sale of such property), (e) all Capital Lease
Obligations of such Person, (f) all obligations of such Person, contingent or
otherwise, as an account party or applicant under or in respect of acceptances,
letters of credit, surety bonds or similar arrangements, (g) all obligations of
such Person, contingent or otherwise, to purchase, redeem, retire or otherwise
acquire for value any Capital Stock of such Person, (h) all Guarantee
Obligations of such Person in respect of obligations of the kind referred to in
clauses (a) through (g) above, (i) all obligations of the kind referred to in
clauses (a) through (h) above secured by (or for which the holder of such
obligation has an existing right, contingent or otherwise, to be secured by)
any Lien on property (including accounts and contract rights) owned by such
Person, whether or not such Person has assumed or become liable for the payment
of such obligation, and (j) for the purposes of Sections 8.2 and 9(e) only, all
obligations of such Person in respect of Hedge Agreements; provided that
Indebtedness shall not include deferred revenue, deferred tax liabilities and
unclaimed property.  The Indebtedness of
any Person shall include the Indebtedness of any other entity (including any
partnership in which such Person is a general partner) to the extent such
Person is liable therefor as a result of such Person’s ownership interest in or
other relationship with such entity, except to the extent the terms of such
Indebtedness expressly provide that such Person is not liable therefor.

 

“Initial Lead Arrangers”:  as defined in the preamble to this Agreement.

 

16

 

“Initial Syndication Agent”:  as defined in the preamble to this Agreement.

 

“Insolvency”:  with respect to any Multiemployer Plan, the condition
that such Plan is insolvent within the meaning of Section 4245 of ERISA.

 

“Insolvent”:  pertaining to a condition of Insolvency.

 

“Intellectual Property”:  the collective reference to all rights,
priorities and privileges relating to intellectual property, whether arising
under United States, multinational or foreign laws or otherwise, including
copyrights, copyright licenses, patents, patent licenses, trademarks, trademark
licenses, technology, know-how and processes, and all rights to sue at law or
in equity for any infringement or other impairment thereof, including the right
to receive all proceeds and damages therefrom.

 

“Intercreditor Agreement”:  the Intercreditor Agreement to be executed by
the Administrative Agent and any applicable representative of the holders of
secured Indebtedness permitted by Section 8.2(d), substantially in the form of
Exhibit N, as it may be amended, supplemented or otherwise modified from time.

 

“Interest Payment Date”:  (a) as to any Base Rate Loan (other than any Swingline
Loan), the last day of each March, June, September and December to occur while
such Loan is outstanding and the final maturity date of such Loan, (b) as to
any Eurodollar Loan having an Interest Period of three months or less, the last
day of such Interest Period, (c) as to any Eurodollar Loan having an Interest
Period longer than three months, each day that is three months, or a whole
multiple thereof, after the first day of such Interest Period and the last day
of such Interest Period, (d) as to any Loan (other than any Revolving Loan that
is a Base Rate Loan and any Swingline Loan), the date of any repayment or
prepayment made in respect thereof and (e) as to any Swingline Loan, the day
that such Loan is required to be paid.

 

“Interest Period”:  as to any Eurodollar Loan, (a) initially, the
period commencing on the borrowing or conversion date, as the case may be, with
respect to such Eurodollar Loan and ending one, two, three or six or (if
available to all Lenders under the relevant Facility) nine or twelve months
thereafter, as selected by the Borrower in its notice of borrowing or notice of
conversion, as the case may be, given with respect thereto; and (b) thereafter,
each period commencing on the last day of the next preceding Interest Period
applicable to such Eurodollar Loan and ending one, two, three or six or (if
available to all Lenders under the relevant Facility) nine or twelve months
thereafter, as selected by the Borrower by irrevocable notice to the
Administrative Agent no later than 2:00 P.M., New York City time, on the date
that is three Business Days prior to the last day of the then current Interest
Period with respect thereto; provided that, all of the foregoing
provisions relating to Interest Periods are subject to the following:

 

(i)            if
any Interest Period would otherwise end on a day that is not a Business Day,
such Interest Period shall be extended to the next succeeding Business Day
unless the result of such extension would be to carry such Interest Period into
another

 

17

 

calendar month in which event such Interest Period shall end on the
immediately preceding Business Day;

 

(ii)          
the Borrower may not select an Interest Period under a particular Facility that
would extend beyond the Revolving Termination Date or beyond the date final
payment is due on the Term Loans;

 

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

 

(iv)         
the Borrower shall select Interest Periods so as not to require a payment or
prepayment of any Eurodollar Loan during an Interest Period for such Loan.

 

“Investments”:  as defined in Section 8.8.

 

“Issuing Lender”:  LaSalle Bank National Association, in its
capacity as issuer of any Letter of Credit.

 

“L/C Commitment”:  $10,000,000.

 

“L/C Fee Payment Date”:  the last day of each March, June, September
and December and the last day of the Revolving Commitment Period.

 

“L/C Obligations”:  at any time, an amount equal to the sum of
(a) the aggregate then undrawn and unexpired amount of the then outstanding
Letters of Credit and (b) the aggregate amount of drawings under Letters of
Credit that have not then been reimbursed pursuant to Section 3.11.

 

“L/C Participants”:  the collective reference to all the Revolving
Lenders other than the Issuing Lender.

 

“Lead Arranger”:  as defined in the preamble to this Agreement.

 

“Lender Presentation”:  the Lender Presentation dated April 2006 and
furnished to the Lenders.

 

“Lenders”:  as defined in the preamble to this Agreement;
provided, that unless the context otherwise requires, each reference
herein to the Lenders shall be deemed to include any Conduit Lender.

 

“Letters of Credit”:  as defined in Section 3.7(a).

 

“Lien”:  any mortgage, pledge, hypothecation,
assignment, deposit arrangement, encumbrance, lien (statutory or other), charge
or other security interest or any preference, priority or other security
agreement or preferential arrangement with respect to property of any

 

18

 

kind or nature
whatsoever (including any conditional sale or other title retention agreement
and any capital lease having substantially the same economic effect as any of
the foregoing).

 

“Loan”:  any loan made by any Lender pursuant to this
Agreement.

 

“Loan Documents”:  this Agreement, the Security Documents, the
Reaffirmation Agreement and the Notes.

 

“Loan Parties”:  each Group Member that is a party to a Loan
Document.

 

“Majority Facility Lenders”:  with respect to any Facility, the holders of
more than 50% of the aggregate unpaid principal amount of the Term Loans or the
Total Revolving Extensions of Credit, as the case may be, outstanding under
such Facility (or, in the case of the Revolving Facility, prior to any
termination of the Revolving Commitments, the holders of more than 50% of the
Total Revolving Commitments).

 

“Management Agreement”: collectively,
those certain letter agreements, by and between (i) the Borrower and Quadrangle
Advisors LLC, and (ii) the Borrower and Quadrangle Debt Recovery Advisors LLC,
setting forth certain terms regarding payments from the Borrower for management
and advisory services rendered by such entities.

 

“Material Adverse Effect”:  a material adverse effect on (a) the
business, assets, property, financial condition or results of operations of the
Borrower and its Subsidiaries taken as a whole or (b) the validity or
enforceability of the Loan Documents or the rights or remedies of the Agents or
the Lenders hereunder or thereunder or the validity, perfection or priority of
the Administrative Agent’s Liens on the Collateral.

 

“Materials of Environmental Concern”:  any gasoline or petroleum (including crude
oil or any fraction thereof) or petroleum products or any hazardous or toxic
substances, materials or wastes as such are defined or otherwise regulated in
or under any Environmental Law, including asbestos, polychlorinated biphenyls
and urea-formaldehyde insulation.

 

“Modifications”:  as defined in Section 6.1(k).

 

“Mortgaged Properties”:  the real properties listed on Schedule
1.1(c), as to which the Administrative Agent for the benefit of the Lenders shall
be granted a Lien pursuant to the Mortgages.

 

“Mortgages”:  each of the amended mortgages and deeds of
trust, as amended by the Modifications, made by any Loan Party in favor of, or
for the benefit of, the Administrative Agent for the benefit of the Lenders,
substantially in the form of Exhibit C (with such changes thereto as shall
be advisable under the law of the jurisdiction in which such mortgage or deed
of trust is to be recorded).

 

“Multiemployer Plan”:  a Plan that is a multiemployer plan as defined
in Section 4001(a)(3) of ERISA.

 

19

 

“Net Cash Investment Cost”: for any
period, with respect to any Person and its Subsidiaries, the excess of (a) the
sum of (i) the aggregate amount of direct and indirect installation expenses
related to acquiring new customers, (ii) the aggregate amount of direct and
indirect selling expenses related to acquiring new customers and (iii) the
aggregate amount paid, directly or indirectly, for acquisition of subscriber
accounts from any third party, minus (b) the aggregate system
installation revenues related to acquiring new customers; each of clause
(a)(i), (a)(ii) and (b) determined without the inclusion of amortization of
deferred costs or amortization of deferred revenues, as appropriate, in that
period, and with the inclusion of costs deferred or revenues deferred, as
appropriate, in that period, and each amount herein in accordance with GAAP.

 

“Net Cash Proceeds”:  (a) in connection with any Asset Sale,
Allotted Disposition, equity issuance of Holdings or Recovery Event, the
proceeds thereof in the form of cash and Cash Equivalents (including any such
proceeds received by way of deferred payment of principal pursuant to a note or
installment receivable or purchase price adjustment receivable or by the
Disposition of any non-cash consideration received in connection therewith or
otherwise, but only as and when received) of such Asset Sale, Allotted
Disposition or Recovery Event, net of 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 that
is the subject of such Asset Sale, Allotted Disposition or Recovery Event
(other than any Lien pursuant to a Security Document) and other reasonable out
of pocket fees and expenses actually incurred in connection therewith and net
of taxes paid or reasonably estimated to be payable as a result thereof (after
taking into account any available tax credits or deductions and any tax sharing
arrangements) and reasonable reserves required to be taken in connection
therewith pursuant to GAAP and (b) in connection with any issuance or sale of
Capital Stock or any incurrence of Indebtedness, the cash proceeds received
from such issuance or incurrence, net of attorneys’ fees, investment banking
fees, accountants’ fees, underwriting discounts and commissions and other
customary fees and expenses actually incurred in connection therewith.

 

“Non-Excluded Taxes”:  as defined in Section 4.10(a).

 

“Non-U.S. Lender”:  as defined in Section 4.10(d).

 

“Notes”:  the collective reference to any promissory
note evidencing Loans.

 

“Obligations”:  the unpaid principal of and interest on
(including interest accruing after the maturity of the Loans and Reimbursement
Obligations and interest accruing after the filing of any petition in
bankruptcy, or the commencement of any insolvency, reorganization or like
proceeding, relating to the Borrower, whether or not a claim for post-filing or
post-petition interest is allowed in such proceeding) the Loans and all other
obligations and liabilities of the Borrower to any Agent or to any Lender (or,
in the case of Specified Hedge Agreements, any Affiliate of any Agent or any
Lender), whether direct or indirect, absolute or contingent, due or to become
due, or now existing or hereafter incurred, which may arise under, out of, or
in connection with, this Agreement, any other Loan Document, the Letters of
Credit, any Specified Hedge Agreement or any other document made, delivered or
given in connection herewith or therewith, whether on account of principal,
interest, reimbursement obligations, fees,

 

20

 

indemnities,
costs, expenses (including all fees, charges and disbursements of counsel to
any Agent or to any Lender that are required to be paid by the Borrower
pursuant hereto) or otherwise; provided, that (i) obligations of the
Borrower or any Subsidiary under any Specified Hedge Agreement shall be secured
and guaranteed pursuant to the Security Documents only to the extent that, and
for so long as, the other Obligations are so secured and guaranteed and (ii)
any release of Collateral or Guarantors or amendments to the Security Documents
effected in the manner permitted by this Agreement shall not require the
consent of holders of obligations under Specified Hedge Agreements.

 

“Original Credit Agreement”:  as defined in the recitals to this Agreement.

 

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

 

“Participant”:  as defined in Section 11.6(b).

 

“PBGC”:  the Pension Benefit Guaranty Corporation
established pursuant to Subtitle A of Title IV of ERISA (or any successor).

 

“Permitted Acquisitions”: 
the acquisition by the Borrower or any of its Subsidiaries of all or
substantially all of the assets of a Person or line of business of such Person,
or all of the Capital Stock of a Person (in each case referred to herein as the
“Acquired Entity”); provided that (a) the Acquired Entity
shall be a going concern and shall be in a related line of business as that of
the Borrower and its Subsidiaries as conducted during the current and most
recently concluded calendar year; (b) all of the assets of the Acquired Entity
shall be located in the United States (provided that such acquisition
may involve assets located outside the United States so long as the sum of the
aggregate value of such foreign assets acquired shall be deemed to be an
Investment for purposes of clause (p) of Section 8.8 and shall be permissible
under such clause of such Section); (c) such acquisition shall be consensual
and shall have been approved by the Acquired Entity’s board of directors (or
other applicable governing body); (d) either (i) the consideration paid in
connection with such acquisition shall be funded solely with the Net Cash
Proceeds from an Allotted Disposition with respect to which a Reinvestment
Notice shall have been delivered hereunder or (ii) the cash consideration (net
of any Net Cash Proceeds received from equity issuances by Holdings or
issuances of subordinated Indebtedness by Holdings to the Sponsor pursuant to
Section 8.2(p), in each case, to the extent such proceeds are substantially
simultaneously applied to fund such Permitted Acquisition) paid in connection
with such acquisition and any other acquisitions under this definition that is
not funded as described in clause (i) above shall not in the aggregate exceed
$15,000,000 during any fiscal year and $35,000,000 in the aggregate during the
term of this Agreement; (e) at the time of such transaction (i) both before and
after giving effect thereto, no Event of Default or Default shall have occurred
and be continuing; and (ii) the Borrower would be in compliance with the
covenants set forth in Section 8.1, in each case, as of the most recently
completed period ending prior to such transaction for which the financial
statements and certificates required by Section 7.1(a) or 7.1(b) and
Section 7.2 were required to be delivered after giving pro forma

 

21

 

effect to such transaction and to any other event occurring after such
period as to which pro forma recalculation is appropriate (including any
other transaction described in this definition occurring after such period) as
if such transaction (and the occurrence, refinancing or assumption of any
Indebtedness in connection therewith) had occurred as of the first day of such
period; (f) at least five Business Days prior to the proposed date of the
consummation of such acquisition, the Borrower shall have delivered to the
Administrative Agent a Compliance Certificate demonstrating compliance with the
requirements of clause (e)(ii) above (which shall have attached thereto
reasonably detailed backup data and calculations showing such compliance); (g)
Holdings, the Borrower and the Subsidiaries of the Borrower shall not incur or
assume any Indebtedness in connection with such acquisition, except as
permitted by Section 8.2; and (h) the Borrower and its Subsidiaries shall
comply, and shall cause the Acquired Entity to comply, with the applicable
provisions of Sections 7.10 and 7.11 and the Security Documents.

 

“Permitted Investors”:  the collective reference to the Sponsor and
its Control Investment Affiliates.

 

“Permitted Refinancing” the
refinancing of 100% of the Senior Subordinated Notes with the proceeds of
Indebtedness of the Borrower or Holdings issued pursuant to documentation (a)
containing terms that provide for (i) a final maturity at least six months
after the Term Loan Maturity Date, (ii) a fixed interest rate consistent with
then prevailing market conditions, or a floating interest rate (provided that
if such Indebtedness is incurred prior to the two-year anniversary of the
Restatement Date, the Borrower shall have obtained interest rate hedging
contracts, on terms which are reasonably satisfactory to the Administrative
Agent, that effectively fix the interest rate on such Indebtedness to the
extent necessary to provide that at least 50% of the Borrower’s outstanding
Indebtedness is subject to either a fixed interest rate or interest rate
protection until such two-year anniversary), (iii) no amortization of the
principal amount of such Indebtedness prior to the date that is six months
after the Term Loan Maturity Date, and (iv) Indebtedness that is either
unsecured or secured by a Lien on all assets, and only such assets, that
constitute Collateral, provided that, if such debt is so secured, the Liens on
such Collateral granted in favor of the lenders of such Indebtedness are second
in priority to the Liens granted to the Lenders under this Agreement, and to
the extent such debt is so secured, the trustee, administrative agent or other
representative of such lenders, as applicable, has delivered an executed
Intercreditor Agreement substantially in the form of Exhibit N or otherwise
acceptable to the Administrative Agent, or (b) on terms otherwise acceptable to
the Administrative Agent.

 

“Person”:  an individual, partnership, corporation,
limited liability company, business trust, joint stock company, trust,
unincorporated association, joint venture, Governmental Authority or other
entity of whatever nature.

 

“Plan”:  at a particular time, any employee benefit
plan that is covered by ERISA and in respect of which the Borrower or a
Commonly Controlled Entity is (or, if such plan were terminated at such time,
would under Section 4069 of ERISA be deemed to be) an “employer” as defined in
Section 3(5) of ERISA.

 

“Pricing Grid”:  the pricing grid attached hereto as Annex A.

 

22

 

“Pro Forma Balance Sheet”:  as defined in Section 5.1(a).

 

“Projections”:  as defined in Section 7.2(c).

 

“Properties”:  as defined in Section 5.17(a).

 

“Property”:  any right or interest in or to property of
any kind whatsoever, whether real, personal or mixed and whether tangible or
intangible, including Capital Stock.

 

“Qualified Counterparty”:  with respect to any Specified Hedge
Agreement, any counterparty thereto that, at the time such Specified Hedge
Agreement was entered into, was a Lender or an Affiliate of a Lender or an
Agent or an Affiliate of an Agent.

 

“Qualified PO”:  an underwritten public offering of common
stock of (and by) Holdings pursuant to an effective registration statement
filed with the Securities and Exchange Commission in accordance with the
Securities Act, which public offering results in gross cash proceeds to
Holdings of $50,000,000 or more.

 

“Reaffirmation Agreement”:  the Reaffirmation Agreement to be executed by
the Borrower and each Guarantor substantially in the form of Exhibit M, as it
may be amended, supplemented or otherwise modified from time to time.

 

“Recovery Event”:  any settlement of or payment in respect of
any property or casualty insurance claim or any condemnation proceeding
relating to any asset of any Group Member (excluding business interruption
insurance).

 

“Reference Bank”:  Deutsche Bank.

 

“Refinanced Indebtedness”:  the Existing Term Loans.

 

“Refinancing”:  the repayment in full, with the proceeds of
the Term Loans, of the Refinanced Indebtedness.

 

“Refunded Swingline Loans”:  as defined in Section 3.4(b).

 

“Refunding Date”:  as defined in Section 3.4(c).

 

“Register”:  as defined in Section 11.6(b).

 

“Regulation U”:  Regulation U of the Board as in effect from
time to time.

 

“Reimbursement Obligation”:  the obligation of the Borrower to reimburse
the Issuing Lender pursuant to Section 3.11 for amounts drawn under Letters of
Credit.

 

“Reinvestment Deferred Amount”:  with respect to any Reinvestment Event, the
portion of Net Cash Proceeds received by any Group Member in connection
therewith that are subject to the mandatory prepayment requirements of Section
4.2(a), (c) or (e) but are not

 

23

 

applied to
prepay the Term Loans or reduce the Revolving Commitments pursuant to Section
4.2(a), (c) or (e) as a result of the delivery of a Reinvestment Notice.

 

“Reinvestment Event”:  any Asset Sale, equity issuance of Holdings,
Recovery Event or Allotted Disposition in respect of which the Borrower has
delivered a Reinvestment Notice.

 

“Reinvestment Notice”:  a written notice executed by a Responsible
Officer stating that no Event of Default has occurred and is continuing and
that the Borrower (directly or indirectly through a Subsidiary) intends and
expects to use all or a specified portion of the Net Cash Proceeds of an Asset
Sale, equity issuance of Holdings, Recovery Event or Allotted Disposition (i)
to acquire or repair assets useful in (or, pursuant to a Permitted Acquisition,
any Acquired Entity engaged in) the business of providing alarm monitoring
services, (ii) for expenditures included in the definition of Net Cash
Investment Costs, or (iii) solely in the case of Net Cash Proceeds of any
equity issuance of Holdings, to prepay all or any portion of the Senior
Subordinated Notes.

 

“Reinvestment Prepayment Amount”:  with respect to any Reinvestment Event, the
Reinvestment Deferred Amount relating thereto less any amount expended (and,
prior to the date that is 360 days following the receipt of Net Cash Proceeds
from the relevant Reinvestment Event, amounts subject to a binding commitment
(evidenced by documentation reasonably satisfactory to the Administrative
Agent) to be expended within such period as evidenced in the applicable
Reinvestment Notice) prior to the relevant Reinvestment Prepayment Date (i) to
acquire or repair assets useful in (or, pursuant to a Permitted Acquisition,
any Acquired Entity engaged in) the business of providing alarm monitoring
services, (ii) for expenditures included in the definition of Net Cash
Investment Costs, or (iii) solely in the case of Net Cash Proceeds of any
equity issuance of Holdings, to prepay all or any portion of the Senior
Subordinated Notes.

 

“Reinvestment Prepayment Date”:  with respect to any Reinvestment Event, the
earlier of (a) the date occurring 270 days after the Net Cash Proceeds from
such Reinvestment Event are received and (b) the date on which the Borrower
shall have determined not to, or shall have otherwise ceased to, acquire or
repair assets useful in (or any Acquired Entity engaged in) the business of
providing alarm monitoring services or for Net Cash Investment Costs (or, in
the case of Net Cash Proceeds of any equity issuance of Holdings, to prepay all
or any portion of the Senior Subordinated Notes) with all or any portion of the
relevant Reinvestment Deferred Amount; provided that, as to amounts evidenced
in any Reinvestment Notice to be committed for expenditure within 360 days
following the receipt of Net Cash Proceeds from the relevant Reinvestment
Event, the date set forth in clause (a) hereof shall be extended from 270 to
360 days.

 

“Reorganization”:  with respect to any Multiemployer Plan, the
condition that such plan is in reorganization within the meaning of Section
4241 of ERISA.

 

“Reportable Event”:  any of the events set forth in Section
4043(c) of ERISA, other than those events as to which the thirty day notice
period is waived under applicable regulations or any successor thereto.

 

24

 

“Required Lenders”:  at any time, the holders of more than 50% of
(a) until the funding of the Term Loans, the Commitments then in effect and (b)
thereafter, the sum of (i) the aggregate unpaid principal amount of the Term
Loans then outstanding and (ii) the Total Revolving Commitments then in effect
or, if the Revolving Commitments have been terminated, the Total Revolving
Extensions of Credit then outstanding.

 

“Requirement of Law”:  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.

 

“Responsible Officer”:  the chief executive officer, president or
chief financial officer of the Borrower, but in any event, with respect to
financial matters, the chief financial officer of the Borrower.

 

“Restatement Date”:  the date on which the conditions precedent
set forth in Section 6.1 shall have been satisfied or waived.

 

“Restatement Date Certificate”:  a Restatement Date Certificate substantially
in the form of Exhibit B.

 

“Restricted Payments”:  as defined in Section 8.6.

 

“Revolving Commitment”:  as to any Lender, the obligation of such
Lender, if any, to make Revolving Loans and participate in Swingline Loans and
Letters of Credit in an aggregate principal and/or face amount not to exceed
the amount set forth under the heading “Revolving Commitment” under such
Lender’s name on such Lender’s Addendum or in the Assignment and Assumption
pursuant to which such Lender became a party hereto, as the same may be changed
from time to time pursuant to the terms hereof. 
The amount of the Total Revolving Commitments as of the Restatement Date
is $25,000,000.

 

“Revolving Commitment Period”:  the period from and including the Closing
Date to the Revolving Termination Date.

 

“Revolving Extensions of Credit”:  as to any Revolving Lender at any time, an
amount equal to the sum of (a) the aggregate principal amount of all Revolving
Loans held by such Lender then outstanding, (b) such Lender’s Revolving
Percentage of the L/C Obligations then outstanding and (c) such Lender’s
Revolving Percentage of the aggregate principal amount of Swingline Loans then
outstanding.

 

“Revolving Lender”:  each Lender that has a Revolving Commitment
or that holds Revolving Loans.

 

“Revolving Loans”:  as defined in Section 3.1(a).

 

25

 

“Revolving Percentage”:  as to any Revolving Lender at any time, the
percentage which such Lender’s Revolving Commitment then constitutes of the
Total Revolving Commitments (or, at any time after the Revolving Commitments
shall have expired or terminated, the percentage which the aggregate principal
amount of such Lender’s Revolving Loans then outstanding constitutes of the
aggregate principal amount of the Revolving Loans then outstanding).

 

“Revolving Termination Date”:  April 18, 2010; provided that the
Revolving Termination Date shall automatically become June 30, 2008 if the
Senior Subordinated Notes are not repaid (or refinanced pursuant to a Permitted
Refinancing) in full on or before such date.

 

“SEC”: 
the Securities and Exchange Commission, any successor thereto and any
analogous Governmental Authority.

 

“Secured Parties”: as defined in the
Guarantee and Collateral Agreement.

 

“Securities Act”: the Securities Act
of 1933, as amended from time to time.

 

“Security Documents”:  the collective reference to the Guarantee and
Collateral Agreement, the Mortgages and all other security documents hereafter
delivered to the Administrative Agent granting a Lien on any property of any
Person to secure the obligations and liabilities of any Loan Party under any
Loan Document.

 

“Senior Subordinated Notes”:  the Borrower’s outstanding 8.125% Senior
Subordinated Notes due 2009.

 

“Single Employer Plan”:  any Plan that is covered by Title IV of
ERISA, but that is not a Multiemployer Plan.

 

“Solvent”:  with respect to any Person, as of any date of
determination, (a) the amount of the “present fair saleable value” of the
assets of such Person will, as of such date, exceed the amount of all “probable
liabilities of such Person, contingent or otherwise”, as of such date, as such
quoted terms are determined in accordance with applicable federal and state
laws governing determinations of the insolvency of debtors, (b) the present
fair saleable value of the assets of such Person will, as of such date, be
greater than the amount that will be required to pay the liability of such
Person on its debts as such debts become absolute and matured, (c) such Person
will not have, as of such date, an unreasonably small amount of capital with
which to conduct its business, (d) such Person will generally be able to pay
its debts as they mature.  For purposes
of this definition, (i) “debt” means liability on a “claim”, and (ii) “claim”
means any (x) right to payment, whether or not such a right is reduced to
judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured,
disputed, undisputed, legal, equitable, secured or unsecured or (y) right to an
equitable remedy for breach of performance if such breach gives rise to a right
to payment, whether or not such right to an equitable remedy is reduced to
judgment, fixed, contingent, matured or unmatured, disputed, undisputed,
secured or unsecured, and (e) such Person has not executed any Loan Documents
with actual intent to hinder, delay or defraud either present or future
creditors; provided, that in computing the amount of any contingent,

 

26

 

unliquidated,
unmatured or disputed claim at any time, it is intended that such claims will
be computed at the amount which, in light of all facts and circumstances
existing at such time, represents the amount that can reasonably be expected to
become an actual, liquidated or matured claim

 

“Specified Change of Control”:  a “Change of Control” (or any other defined
term having a similar purpose) as defined in the indenture governing the Senior
Subordinated Notes.

 

“Specified Hedge Agreement”:  any Hedge Agreement (a) entered into by (i) the
Borrower or any of its Subsidiaries and (ii)
any Qualified Counterparty and (b) that
has been designated by such Agent or Lender or Affiliate thereof, as the case
may be, and the Borrower, by notice to the Administrative Agent, as a Specified
Hedge Agreement.  The designation of any
Hedge Agreement as a Specified Hedge Agreement shall not create in favor of the
Qualified Counterparty that is a party thereto any rights in connection with
the management or release of any Collateral or of the obligations of any
Guarantor under the Guarantee and Collateral Agreement.

 

“Sponsor”:  Quadrangle Capital Partners LP, Quadrangle
Capital Partners-A LP, Quadrangle Select Partners LP, any other Persons managed
by Quadrangle GP Investors, LLC, Quadrangle Master Funding Ltd, any other
Persons managed by Quadrangle Debt Recovery Advisors LLC and their respective
affiliates.

 

“Subordinated Intercompany Note”:  with respect to any Group Member or affiliate
thereof as the maker thereof, a promissory note substantially in the form of
Exhibit J (with such modifications as the Administrative Agent may agree to),
which promissory note shall evidence all intercompany loans which may be made
from time to time by any payee thereunder (whether or not reflected on the
attached schedule thereto), including that certain Subordinated Intercompany
Note dated as of the Closing Date, by and among the Group Members; provided
that the amounts reflected as owing pursuant to any such notes shall only be
required to be updated on a quarterly basis.

 

“Subsidiary”:  as to any Person, a corporation, partnership,
limited liability company or other entity of which shares of stock or other
ownership interests having ordinary voting power (other than stock or such
other ownership interests having such power only by reason of the happening of
a contingency) to elect a majority of the board of directors or other managers
of such corporation, partnership or other entity are at the time owned, or the
management of which is otherwise controlled, directly or indirectly through one
or more intermediaries, or both, by such Person.  Unless otherwise qualified, all references to
a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a
Subsidiary or Subsidiaries of Holdings.

 

“Subsidiary Guarantor”:  each Domestic Subsidiary of the Borrower.

 

“Swingline Commitment”:  the obligation of the Swingline Lender to
make Swingline Loans pursuant to Section 3.3 in an aggregate principal amount
at any one time outstanding not to exceed $2,500,000.

 

27

 

“Swingline Lender”:  Bear Stearns Corporate Lending Inc., in its
capacity as the lender of Swingline Loans.

 

“Swingline Loans”:  as defined in Section 3.3.

 

“Swingline Participation Amount”:  as defined in Section 3.4.

 

“Syndication Agent”:  as defined in the preamble to this Agreement.

 

“Term Commitment”:  as to any Lender, the obligation of such
Lender, if any, to make a Term Loan to the Borrower hereunder in a principal
amount not to exceed the amount set forth under the heading “Term Commitment”
under such Lender’s name on such Lender’s Addendum.  The aggregate amount of the Term Commitments
as of the Restatement Date is $300,000,000.

 

“Term Lender”:  each Lender that has a Term Commitment or
that holds a Term Loan.

 

“Term Loan”:  as defined in Section 2.1.

 

“Term Loan Maturity Date”: March 31,
2012; provided that the Term Loan Maturity Date shall automatically
become June 30, 2008 if the Senior Subordinated Notes are not repaid (or
refinanced pursuant to a Permitted Refinancing) in full on or prior to such
date.

 

“Term Percentage”:  as to any Term Lender at any time, the
percentage which such Lender’s Term Commitment then constitutes of the
aggregate Term Commitments (or, at any time after the funding of the Term
Loans, the percentage which the aggregate principal amount of such Lender’s
Term Loans then outstanding constitutes of the aggregate principal amount of
the Term Loans then outstanding).

 

 “Total
Revolving Commitments”:  at any time,
the aggregate amount of the Revolving Commitments then in effect.

 

“Total Revolving Extensions of Credit”:  at any time, the aggregate amount of the
Revolving Extensions of Credit of the Revolving Lenders outstanding at such
time.

 

 “Transferee”:  any Assignee or Participant.

 

“Type”:  as to any Loan, its nature as a Base Rate
Loan or a Eurodollar Loan.

 

“United States”:  the United States of America.

 

“Wholly Owned Subsidiary”:  as to any Person, any other Person all of the
Capital Stock of which (other than directors’ qualifying shares required by
law) is owned by such Person directly and/or through other Wholly Owned
Subsidiaries.

 

28

 

“Wholly Owned Subsidiary Guarantor”:  any Subsidiary Guarantor that is a Wholly
Owned Subsidiary of the Borrower.

 

1.2.          Other
Definitional Provisions.  (a)  Unless otherwise specified therein, all terms
defined in this Agreement shall have the defined meanings when used in the
other Loan Documents or any certificate or other document made or delivered
pursuant hereto or thereto.

 

(b)   As used herein and in the other Loan
Documents, and any certificate or other document made or delivered pursuant
hereto or thereto, (i) accounting terms relating to any Group Member not
defined in Section 1.1 and accounting terms partly defined in Section 1.1, to
the extent not defined, shall have the respective meanings given to them under
GAAP, (ii) the words “include”, “includes” and “including” shall be deemed to
be followed by the phrase “without limitation”, (iii) the word “incur” shall be
construed to mean incur, create, issue, assume, become liable in respect of or
suffer to exist (and the words “incurred” and “incurrence” shall have
correlative meanings), (iv) the words “asset” and “property” shall be construed
to have the same meaning and effect and to refer to any and all tangible and
intangible assets and properties, including cash, Capital Stock, securities,
revenues, accounts, leasehold interests and contract rights, and (v) references
to agreements or other Contractual Obligations shall, unless otherwise
specified, be deemed to refer to such agreements or Contractual Obligations as
amended, supplemented, restated or otherwise modified from time to time
(subject to any applicable restrictions hereunder).

 

(c)    The words “hereof”, “herein” and “hereunder”
and words of similar import when used in this Agreement shall refer to this
Agreement as a whole and not to any particular provision of this Agreement, and
Section, Schedule and Exhibit references are to this Agreement unless otherwise
specified.

 

(d)    The meanings given to terms defined herein
shall be equally applicable to both the singular and plural forms of such
terms.

 

(e)   The expressions, “payment in full,” “paid in
full” and any other similar terms or phrases when used herein with respect to
the Obligations shall mean the payment in full, in immediately available funds,
of all the Obligations.

 

SECTION 2.  AMOUNT AND TERMS OF TERM COMMITMENTS

 

2.1.          Term Commitments. 
(a) Subject to the terms and conditions hereof, each Term Lender
severally agrees to make a term loan (a “Term Loan”) to the Borrower on
the Restatement Date in an amount not to exceed the amount of the Term
Commitment of such Lender.  The Term
Loans may from time to time be Eurodollar Loans or Base Rate Loans, as
determined by the Borrower and notified to the Administrative Agent in accordance
with Sections 2.2 and 4.3.

 

(b)   Subject to the terms and conditions hereof,
each of the Continuing Lenders agrees that the Existing Term Loans made by such
Lender under the Original Credit Agreement shall remain outstanding on and
after the Restatement Date as Term Loans made pursuant to this

 

29

 

Agreement, and shall be deemed to have been repaid
with Term Loans made pursuant to this Agreement on the Restatement Date.  Each Existing Term Loan of a Continuing
Lender shall be deemed to satisfy, dollar for dollar, such Continuing Lender’s
obligation to make Term Loans on the Restatement Date.  Such Existing Term Loans shall on and after
the Restatement Date have all of the rights and benefits of Term Loans as set
forth in this Agreement and the other Loan Documents.  Notwithstanding anything herein to the
contrary, all such Term Loans made hereunder on the Restatement Date pursuant
to this section 2.1(a)(b) that are Eurodollar Rate Loans will have initial
Interest Periods ending on the same dates as the Interest Periods applicable to
the Existing Term Loans of such Continuing Lenders.

 

2.2.          Procedure for Term Loan Borrowing.  The Borrower shall give the Administrative
Agent irrevocable notice (which notice must be received by the Administrative
Agent prior to 10:00 A.M., New York City time, one Business Day prior to the
anticipated Restatement Date) requesting that the Term Lenders make the Term
Loans on the Restatement Date and specifying the amount to be borrowed.  Upon receipt of such notice the
Administrative Agent shall promptly notify each Term Lender thereof.  Not later than 12:00 Noon, New York City
time, on the Restatement Date each Term Lender shall make available to the
Administrative Agent at the Funding Office an amount in immediately available
funds (except as set forth in Section 2.1(b)) equal to the Term Loan or Term
Loans to be made by such Lender.  The
Administrative Agent shall credit the account of the Borrower on the books of
such office of the Administrative Agent with the aggregate of the amounts made
available to the Administrative Agent by the Term Lenders in immediately
available funds.

 

2.3.          Repayment of Term Loans.  The Term Loan of each Term Lender shall mature in the following
quarterly installments, commencing on June 30, 2006, each of which shall be in
an amount equal to such Lender’s Term Percentage multiplied by the amount set
forth below opposite such installment:

 

	
  Installment

  	
   

  	
  Principal Amount

  	
   

  
	
  June 30, 2006

  	
   

  	
  $750,000

  	
   

  
	
  September 30, 2006

  	
   

  	
  $750,000

  	
   

  
	
  December 31, 2006

  	
   

  	
  $750,000

  	
   

  
	
  March 31, 2007

  	
   

  	
  $750,000

  	
   

  
	
  June 30, 2007

  	
   

  	
  $750,000

  	
   

  
	
  September 30, 2007

  	
   

  	
  $750,000

  	
   

  
	
  December 31, 2007

  	
   

  	
  $750,000

  	
   

  
	
  March 31, 2008

  	
   

  	
  $750,000

  	
   

  
	
  June 30, 2008

  	
   

  	
  $750,000

  	
   

  
	
  September 30, 2008

  	
   

  	
  $750,000

  	
   

  
	
  December 31, 2008

  	
   

  	
  $750,000

  	
   

  
	
  March 31, 2009

  	
   

  	
  $750,000

  	
   

  
	
  June 30, 2009

  	
   

  	
  $750,000

  	
   

  
	
  September 30, 2009

  	
   

  	
  $750,000

  	
   

  
	
  December 31, 2009

  	
   

  	
  $750,000

  	
   

  
	
  March 31, 2010

  	
   

  	
  $750,000

  	
   

  

 

30

 

	
  June 30, 2010

  	
   

  	
  $750,000

  	
   

  
	
  September 30, 2010

  	
   

  	
  $750,000

  	
   

  
	
  December 31, 2010

  	
   

  	
  $750,000

  	
   

  
	
  March 31, 2011

  	
   

  	
  $750,000

  	
   

  
	
  June 30, 2011

  	
   

  	
  $750,000

  	
   

  
	
  September 30, 2011

  	
   

  	
  $750,000

  	
   

  
	
  December 31, 2011

  	
   

  	
  $750,000

  	
   

  
	
  Term Loan Maturity Date

  	
   

  	
  $282,750,000 or remainder

  	
   

  

 

SECTION 3.  AMOUNT AND TERMS OF REVOLVING COMMITMENTS

 

3.1.          Revolving Commitments. 
(a)Subject to the terms and conditions hereof, each Revolving Lender
severally agrees to make revolving credit loans (“Revolving Loans”) to
the Borrower from time to time during the Revolving Commitment Period in an
aggregate principal amount at any one time outstanding which, when added to
such Lender’s Revolving Percentage of the sum of (i) the L/C Obligations then
outstanding and (ii) the aggregate principal amount of the Swingline Loans then
outstanding, does not exceed the amount of such Lender’s Revolving
Commitment.  During the Revolving
Commitment Period the Borrower may use the Revolving Commitments by borrowing,
prepaying and reborrowing the Revolving Loans in whole or in part, all in
accordance with the terms and conditions hereof.  The Revolving Loans may from time to time be
Eurodollar Loans or Base Rate Loans, as determined by the Borrower and notified
to the Administrative Agent in accordance with Sections 3.2 and 4.3.

 

(b)   The Borrower shall repay all outstanding
Revolving Loans on the Revolving Termination Date.

 

3.2.          Procedure for Revolving Loan Borrowing.   The Borrower may borrow under the Revolving
Commitments during the Revolving Commitment Period on any Business Day,
provided that the Borrower shall give the Administrative Agent irrevocable
notice (which notice must be received by the Administrative Agent prior to 2:00
P.M., New York City time, (a) three Business Days prior to the requested
Borrowing Date, in the case of Eurodollar Loans, or (b) one Business Day prior
to the requested Borrowing Date, in the case of Base Rate Loans) (provided that
any such notice of a borrowing of Base Rate Loans under the Revolving Facility
to finance payments required to be made pursuant to Section 3.5 may be given
not later than 10:00 A.M., New York City time, on the date of the proposed
borrowing), specifying (i) the amount and Type of Revolving Loans to be
borrowed, (ii) the requested Borrowing Date and (iii) in the case of Eurodollar
Loans, the respective amounts of each such Type of Loan and the respective
lengths of the initial Interest Period therefor.  Each borrowing under the Revolving
Commitments shall be in an amount equal to (x) in the case of Base Rate Loans,
$1,000,000 or a whole multiple thereof (or, if the then aggregate Available
Revolving Commitments are less than $1,000,000, such lesser amount) and (y) in
the case of Eurodollar Loans, $1,000,000 or a whole multiple of $1,000,000 in
excess thereof; provided, that the Swingline Lender may request, on behalf of
the Borrower, borrowings under the Revolving Commitments that are Base Rate
Loans in other amounts pursuant to Section 3.4. 
Upon receipt of any such notice from the Borrower,

 

31

 

the Administrative Agent shall promptly notify each Revolving Lender
thereof.  Each Revolving Lender will make
the amount of its pro rata share of each borrowing available to the
Administrative Agent for the account of the Borrower at the Funding Office
prior to 12:00 Noon, New York City time, on the Borrowing Date requested by the
Borrower in funds immediately available to the Administrative Agent.  Such borrowing will then be made available to
the Borrower by the Administrative Agent by crediting the account of the Borrower
on the books of such office with the aggregate of the amounts made available to
the Administrative Agent by the Revolving Lenders and in like funds as received
by the Administrative Agent.

 

3.3.          Swingline Commitment. 
(a) Subject to the terms and conditions hereof, the Swingline Lender
agrees to make a portion of the credit otherwise available to the Borrower
under the Revolving Commitments from time to time during the Revolving
Commitment Period by making swing line loans (“Swingline Loans”) to the Borrower;
provided that (i) the aggregate principal amount of Swingline Loans
outstanding at any time shall not exceed the Swingline Commitment then in
effect (notwithstanding that the Swingline Loans outstanding at any time, when
aggregated with the Swingline Lender’s other outstanding Revolving Loans
hereunder, may exceed the Swingline Commitment then in effect) and (ii) the
Borrower shall not request, and the Swingline Lender shall not make, any
Swingline Loan if, after giving effect to the making of such Swingline Loan,
the aggregate amount of the Available Revolving Commitments would be less than
zero.  During the Revolving Commitment
Period, the Borrower may use the Swingline Commitment by borrowing, repaying
and reborrowing, all in accordance with the terms and conditions hereof.  Swingline Loans shall be Base Rate Loans
only.

 

(b)   The Borrower shall repay all outstanding
Swingline Loans on the Revolving Termination Date.

 

3.4.          Procedure for Swingline Borrowing; Refunding of Swingline
Loans.  (a)  Whenever the Borrower desires that the
Swingline Lender make Swingline Loans it shall give the Swingline Lender
irrevocable telephonic notice confirmed promptly in writing (which telephonic
notice must be received by the Swingline Lender not later than 1:00 P.M., New
York City time, on the proposed Borrowing Date), specifying (i) the amount to
be borrowed and (ii) the requested Borrowing Date (which shall be a Business
Day during the Revolving Commitment Period). 
Each borrowing under the Swingline Commitment shall be in an amount
equal to $500,000 or a whole multiple of $100,000 in excess thereof.  Not later than 3:00 P.M., New York City time,
on the Borrowing Date specified in a notice in respect of Swingline Loans, the
Swingline Lender shall make available to the Administrative Agent at the
Funding Office an amount in immediately available funds equal to the amount of
the Swingline Loan to be made by the Swingline Lender.  The Administrative Agent shall make the
proceeds of such Swingline Loan available to the Borrower on such Borrowing
Date by depositing such proceeds in the account of the Borrower with the
Administrative Agent on such Borrowing Date in immediately available funds.

 

(b)   The Swingline Lender, at any time and from
time to time in its sole and absolute discretion may, and on the third Business
Day after the making of any Swingline Loan if no notice has yet been given
shall, on behalf of the Borrower (which hereby irrevocably directs the
Swingline Lender to act on its behalf), on one Business Day’s notice given by
the Swingline

 

32

 

Lender no later than 12:00
Noon, New York City time, request each Revolving Lender to make, and each
Revolving Lender hereby agrees to make, a Revolving Loan, in an amount equal to
such Revolving Lender’s Revolving Percentage of the aggregate amount of the
Swingline Loans (the “Refunded Swingline Loans”) outstanding on the date
of such notice, to repay the Swingline Lender. 
Each Revolving Lender shall make the amount of such Revolving Loan
available to the Administrative Agent at the Funding Office in immediately
available funds, not later than 10:00 A.M., New York City time, one Business
Day after the date of such notice.  The
proceeds of such Revolving Loans shall be immediately made available by the
Administrative Agent to the Swingline Lender for application by the Swingline
Lender to the repayment of the Refunded Swingline Loans.  The Borrower irrevocably authorizes the
Swingline Lender to charge the Borrower’s accounts with the Administrative
Agent (up to the amount available in each such account) in order to immediately
pay the amount of such Refunded Swingline Loans to the extent amounts received
from the Revolving Lenders are not sufficient to repay in full such Refunded
Swingline Loans.

 

(c)   If prior to the time a Revolving Loan would
have otherwise been made pursuant to Section 3.4(b), one of the events
described in Section 9(f) shall have occurred and be continuing with respect to
the Borrower or if for any other reason, as determined by the Swingline Lender
in its sole discretion, Revolving Loans may not be made as contemplated by
Section 3.4(b), each Revolving Lender shall, on the date such Revolving Loan
was to have been made pursuant to the notice referred to in Section 3.4(b) (the
“Refunding Date”), purchase for cash an undivided participating interest
in the then outstanding Swingline Loans by paying to the Swingline Lender an
amount (the “Swingline Participation Amount”) equal to (i) such
Revolving Lender’s Revolving Percentage multiplied by (ii) the sum of the
aggregate principal amount of Swingline Loans then outstanding that were to
have been repaid with such Revolving Loans.

 

(d)   Whenever, at any time after the Swingline
Lender has received from any Revolving Lender such Lender’s Swingline
Participation Amount, the Swingline Lender receives any payment on account of
the Swingline Loans, the Swingline Lender will distribute to such Lender its
Swingline Participation Amount (appropriately adjusted, in the case of interest
payments, to reflect the period of time during which such Lender’s
participating interest was outstanding and funded and, in the case of principal
and interest payments, to reflect such Lender’s pro  rata portion
of such payment if such payment is not sufficient to pay the principal of and
interest on all Swingline Loans then due); provided, however,
that in the event that such payment received by the Swingline Lender is
required to be returned, such Revolving Lender will return to the Swingline
Lender any portion thereof previously distributed to it by the Swingline
Lender.

 

(e)    Each Revolving Lender’s obligation to make
the Loans referred to in Section 3.4(b) and to purchase participating interests
pursuant to Section 3.4(c) shall be absolute and unconditional and shall not be
affected by any circumstance, including (i) any setoff, counterclaim,
recoupment, defense or other right that such Revolving Lender or the Borrower
may have against the Swingline Lender, the Borrower or any other Person for any
reason whatsoever; (ii) the occurrence or continuance of a Default or an Event
of Default or the failure to satisfy any of the other conditions specified in
Section 6; (iii) any adverse change in the condition (financial or otherwise)
of the Borrower; (iv) any breach of this Agreement or any

 

33

 

other Loan Document by the
Borrower, any other Loan Party or any other Revolving Lender; or (v) any other
circumstance, happening or event whatsoever, whether or not similar to any of
the foregoing.

 

3.5.          Commitment Fees, etc. 
(a)  The Borrower agrees to pay to
the Administrative Agent for the account of each Revolving Lender a commitment
fee for the period from and including the Closing Date to the last day of the
Revolving Commitment Period, computed at the Commitment Fee Rate on the average
daily amount of the Available Revolving Commitment of such Lender during the
period for which payment is made, payable quarterly in arrears on the last day
of each March, June, September and December and on the Revolving Termination
Date, commencing on the first of such dates to occur after the date hereof.

 

(b)   The Borrower agrees to pay to the
Administrative Agent the fees in the amounts and on the dates previously agreed
to in writing by the Borrower and the Administrative Agent.

 

(c)   The Borrower agrees to pay to the Lead
Arranger the fees in the amounts and on the dates previously agreed to in
writing by the Borrower and the Lead Arranger.

 

3.6.          Termination or Reduction of Revolving Commitments.  The Borrower shall have the right, upon not
less than three Business Days’ notice to the Administrative Agent, to terminate
the Revolving Commitments or, from time to time, to reduce the amount of the
Revolving Commitments; provided that no such termination or reduction of
Revolving Commitments shall be permitted if, after giving effect thereto and to
any prepayments of the Revolving Loans and Swingline Loans made on the
effective date thereof, the Total Revolving Extensions of Credit would exceed
the Total Revolving Commitments.  Any
such reduction shall be in an amount equal to $1,000,000, or a whole multiple
thereof, and shall reduce permanently the Revolving Commitments then in effect.

 

3.7.          L/C Commitment. 
(a)  Subject to the terms and
conditions hereof, the Issuing Lender, in reliance on the agreements of the
other Revolving Lenders set forth in Section 3.10(a), agrees to issue letters
of credit (“Letters of Credit”) for the account of the Borrower on any
Business Day during the Revolving Commitment Period in such form as may be
agreed from time to time between the Issuing Lender and Borrower; provided
that the Issuing Lender shall not issue any Letter of Credit if, (i) after
giving effect to such issuance, the L/C Obligations would exceed the L/C
Commitment, (ii) after giving effect to such issuance, the aggregate amount of
the Available Revolving Commitments would be less than zero, or (iii) it has
received notice of any existing Default or Event of Default.  Each Letter of Credit shall (i) be
denominated in Dollars, and (ii) expire no later than the earlier of (x) the
first anniversary of its date of issuance and (y) unless cash collateralized in
an account at the Issuing Bank, the date that is five Business Days prior to
the Revolving Termination Date, provided that any Letter of Credit with a
one-year term may provide for the renewal thereof for additional one-year
periods (which shall in no event extend beyond the date referred to in clause
(y) above).

 

34

 

(b)   The Issuing Lender shall not at any time be
obligated to issue any Letter of Credit hereunder if such issuance would
conflict with, or cause the Issuing Lender or any L/C Participant to exceed any
limits imposed by, any applicable Requirement of Law.

 

3.8.          Procedure for Issuance of Letter of Credit.  The Borrower may from time to time request
that the Issuing Lender issue a Letter of Credit by delivering to the Issuing
Lender at its address for notices specified herein an Application therefor,
completed to the reasonable satisfaction of the Issuing Lender, and such other
certificates, documents and other papers and information as the Issuing Lender
may reasonably request.  Upon receipt of
any Application, the Issuing Lender will notify the Administrative Agent of the
amount, the beneficiary and the requested expiration of the requested Letter of
Credit, and upon receipt of confirmation from the Administrative Agent that
after giving effect to the requested issuance, the Available Revolving
Commitments would not be less than zero, the Issuing Lender will process such
Application and the certificates, documents and other papers and information
delivered to it in connection therewith in accordance with its customary procedures
and shall promptly issue the Letter of Credit requested thereby (but in no
event shall the Issuing Lender be required to issue any Letter of Credit
earlier than three Business Days after its receipt of the Application therefor
and all such other certificates, documents and other papers and information
relating thereto) by issuing the original of such Letter of Credit to the
beneficiary thereof or as otherwise may be agreed to by the Issuing Lender and
the Borrower.  The Issuing Lender shall
furnish a copy of such Letter of Credit to the Borrower (with, upon its
request, a copy to the Administrative Agent) promptly following the issuance
thereof.  The Issuing Lender shall
promptly furnish to the Administrative Agent, which shall in turn promptly furnish
to the Administrative Agent, which shall in turn promptly furnish to the
Lenders, notice of the issuance of each Letter of Credit (including the amount
thereof).

 

3.9.          Fees and Other Charges.  (a) 
The Borrower will pay to the Issuing Lender a fee on all outstanding
Letters of Credit at a per annum rate equal to the Applicable Margin then in
effect with respect to Eurodollar Loans under the Revolving Facility, to be
shared ratably among the Revolving Lenders and payable quarterly in arrears on
each L/C Fee Payment Date after the issuance date.  In addition, the Borrower shall pay to the
Issuing Lender for its own account a fronting fee on the undrawn and unexpired
amount of each Letter of Credit as agreed by the Borrower and the Issuing
Lender, payable quarterly in arrears on each L/C Fee Payment Date after the
issuance date.

 

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

 

3.10.        L/C Participations. 
(a)  The Issuing Lender
irrevocably agrees to grant and hereby grants to each L/C Participant, and, to
induce the Issuing Lender to issue Letters of Credit hereunder, each L/C
Participant irrevocably agrees to accept and purchase and hereby accepts and
purchases from the Issuing Lender, on the terms and conditions set forth below,
for such L/C Participant’s own account and risk an undivided interest equal to
such L/C Participant’s Revolving Percentage in the Issuing Lender’s obligations
and rights under and in respect of each

 

35

 

Letter of Credit issued hereunder, in accordance with the terms hereof,
and the amount of each draft paid by the Issuing Lender thereunder.  Each L/C Participant unconditionally and
irrevocably agrees with the Issuing Lender that, if a draft is paid under any
Letter of Credit for which the Borrower is required to reimburse the Issuing
Lender for and the Issuing Lender is not reimbursed in full by the Borrower in
accordance with the terms of this Agreement, such L/C Participant shall pay to
the Administrative Agent upon demand of the Issuing Lender an amount equal to
such L/C Participant’s Revolving Percentage of the amount of such draft, or any
part thereof, that is not so reimbursed. The Administrative Agent shall
promptly forward such amounts to the Issuing Lender.

 

(b)   If any amount required to be paid by any L/C
Participant to the Administrative Agent for the account of the Issuing Lender
pursuant to Section 3.10(a) in respect of any unreimbursed portion of any
payment made by the Issuing Lender under any Letter of Credit is not paid to
the Administrative Agent for the account of the Issuing Lender within three
Business Days after the date such payment is demanded, such L/C Participant
shall pay to the Administrative Agent for the account of the Issuing Lender on
demand an amount equal to the product of (i)
such amount, times (ii) the daily average
Federal Funds Effective Rate during the period from and including the date such
payment is required to the date on which such payment is immediately available
to the Issuing Lender, times (iii) a
fraction the numerator of which is the number of days that elapse during such
period and the denominator of which is 360. 
If any such amount required to be paid by any L/C Participant pursuant
to Section 3.10(a) is not made available to the Administrative Agent for the
account of the Issuing Lender by such L/C Participant within three Business
Days after the date such payment is demanded, the Issuing Lender shall be
entitled to recover from such L/C Participant, on demand, such amount with
interest thereon calculated from such due date at the rate per annum applicable
to Base Rate Loans under the Revolving Facility.  A certificate of the Issuing Lender submitted
to any L/C Participant with respect to any amounts owing under this Section
shall be conclusive in the absence of manifest error.

 

(c)   Whenever, at any time after the Issuing
Lender has made payment under any Letter of Credit and has received from any
L/C Participant its pro  rata share of such payment in accordance
with Section 3.10(a), the Administrative Agent or the Issuing Lender receives
any payment related to such Letter of Credit (whether directly from the
Borrower or otherwise, including proceeds of collateral applied thereto by the
Issuing Lender), or any payment of interest on account thereof, the
Administrative Agent or the Issuing Lender, as the case may be, will distribute
to such L/C Participant its pro  rata share thereof; provided,
however, that in the event that any such payment received by
Administrative Agent or the Issuing Lender, as the case may be, shall be
required to be returned by the Administrative Agent or the Issuing Lender, such
L/C Participant shall return to the Administrative Agent for the account of the
Issuing Lender the portion thereof previously distributed by the Administrative
Agent or the Issuing Lender, as the case may be, to it.

 

3.11.        Reimbursement Obligation of the Borrower.  The Borrower agrees to reimburse the Issuing
Lender on the Business Day next succeeding the Business Day on which the
Issuing Lender notifies the Borrower of the date and amount of a draft
presented under any Letter of Credit and paid by the Issuing Lender for the
amount of (a) such draft so paid and (b)

 

36

 

any taxes, fees, charges or other reasonable costs or expenses incurred
by the Issuing Lender in connection with such payment.  Each such payment shall be made to the
Issuing Lender at its address for notices referred to herein in Dollars and in
immediately available funds.  Interest shall
be payable on any such amounts from the date on which the relevant draft is
paid until payment in full at the rate set forth in (i) until the Business Day
next succeeding the date of the relevant notice, Section 4.5(b) and (ii)
thereafter, Section 4.5(c).  To the
extent not so reimbursed as set forth above, each drawing under any Letter of
Credit shall (unless an event of the type described in clause (i) or (ii) of
Section 9(f) shall have occurred and be continuing with respect to the
Borrower, in which case the procedures specified in Section 3.10 for funding by
L/C Participants shall apply) constitute a request by the Borrower to the
Administrative Agent for a borrowing pursuant to Section 3.2 of Base Rate Loans
in the amount of such drawing.  The Borrowing
Date with respect to such borrowing shall be the first date on which a
borrowing of Revolving Credit Loans could be made, pursuant to Section 3.2, if
the Administrative Agent had received a notice of such borrowing at the time
the Administrative Agent receives notice from the relevant Issuing Lender of
such drawing under such Letter of Credit.

 

3.12.        Obligations Absolute. 
The Borrower’s obligations under Section 3.11 shall be absolute and
unconditional under any and all circumstances and irrespective of any setoff,
counterclaim or defense to payment that the Borrower may have or have had
against the Issuing Lender, any beneficiary of a Letter of Credit or any other
Person.  The Borrower also agrees with
the Issuing Lender that the Issuing Lender shall not be responsible for, and
the Borrower’s Reimbursement Obligations under Section 3.11 shall not be
affected by, among other things, the validity or genuineness of documents or of
any endorsements thereon, even though such documents shall in fact prove to be
invalid, fraudulent or forged, or any dispute between or among the Borrower and
any beneficiary of any Letter of Credit or any other party to which such Letter
of Credit may be transferred or any claims whatsoever of the Borrower against
any beneficiary of such Letter of Credit or any such transferee.  Notwithstanding the foregoing, the Issuing
Lender shall not be liable for any error, omission, interruption or delay in
transmission, dispatch or delivery of any message or advice, however
transmitted, in connection with any Letter of Credit, except for errors or
omissions found by a final and nonappealable decision of a court of competent
jurisdiction to have resulted from the gross negligence or willful misconduct
of the Issuing Lender.  The Borrower agrees
that any action taken or omitted by the Issuing Lender under or in connection
with any Letter of Credit or the related drafts or documents, if done in the
absence of gross negligence or willful misconduct and in accordance with the
standards of care specified in the Uniform Commercial Code of the State of New
York, shall be binding on the Borrower and shall not result in any liability of
the Issuing Lender to the Borrower.

 

3.13.        Letter of Credit Payments.  If any draft shall be presented for payment
under any Letter of Credit, the Issuing Lender shall promptly notify the
Borrower of the date and amount thereof. 
The responsibility of the Issuing Lender to the Borrower in connection
with any draft presented for payment under any Letter of Credit shall, in
addition to any payment obligation expressly provided for in such Letter of
Credit, be limited to determining that the documents (including each draft)
delivered under such Letter of Credit in connection with such presentment are
substantially in conformity with such Letter of Credit.

 

37

 

3.14.        Applications.  To
the extent that any provision of any Application related to any Letter of
Credit is inconsistent with the provisions of this Section 3, the provisions of
this Section 3 shall apply.

 

SECTION 4.  GENERAL PROVISIONS APPLICABLE 

TO LOANS AND LETTERS OF CREDIT

 

4.1.          Optional Prepayments. 
The Borrower may at any time and from time to time prepay the Loans, in
whole or in part, without premium or penalty, upon irrevocable notice delivered
to the Administrative Agent no later than 2:00 P.M., New York City time, three
Business Days prior thereto in the case of Eurodollar Loans and no later than
2:00 P.M., New York City time, one Business Day prior thereto in the case of
Base Rate Loans, which notice shall specify the date and amount of prepayment
and whether the prepayment is of Eurodollar Loans or Base Rate Loans; provided,
that if a Eurodollar Loan is prepaid on any day other than the last day of the
Interest Period applicable thereto, the Borrower shall also pay any amounts
owing pursuant to Section 4.11.  Upon
receipt of any such notice the Administrative Agent shall promptly notify each
relevant Lender thereof.  If any such
notice is given, the amount specified in such notice shall be due and payable
on the date specified therein, together with (except in the case of Revolving
Loans that are Base Rate Loans and Swingline Loans) accrued interest to such
date on the amount prepaid.  Partial
prepayments of Term Loans and Revolving Loans shall be in an aggregate
principal amount of $1,000,000 or a whole multiple thereof.  Partial prepayments of Swingline Loans shall
be in an aggregate principal amount of $100,000 or a whole multiple thereof.

 

4.2.          Mandatory Prepayments and Commitment Reductions.  (a)        If
any Capital Stock shall be issued by Holdings on any date (other than issuances
(a) to the Sponsor and its Control Investment Affiliates, (b) to management,
employees, directors or consultants of Holdings or any of its Subsidiaries
pursuant to any employee stock option or stock purchase plan or other employee
benefit plan in existence from time to time, or (c) to other Persons to the
extent the proceeds of such issuances are (i) concurrently applied to fund
Permitted Acquisitions or (ii) utilized to increase permitted Net Cash
Investment Costs pursuant to clause (B)(iii) of the proviso to Section 8.7(b)),
an amount equal to 50% of the Net Cash Proceeds thereof shall be applied
(unless a Reinvestment Notice shall be delivered in respect thereof) on the
date of such issuance toward the prepayment of the Term Loans and the reduction
of the Revolving Commitments as set forth in Section 4.2(f); provided
that (i) no such application of Net Cash Proceeds shall be required if, at the
time of such issuance of Capital Stock, the Borrower’s Consolidated Leverage
Ratio is less than 2.50:1.00 and (ii) notwithstanding the foregoing, on each
Reinvestment Prepayment Date, an amount equal to the Reinvestment Prepayment Amount
with respect to the relevant Reinvestment Event shall be applied toward the
prepayment of the Term Loans and the reduction of the Revolving Commitments as
set forth in Section 4.2(f).

 

(b)   If any Indebtedness shall be incurred by any
Group Member (other than Excluded Indebtedness), an amount equal to 100% of the
Net Cash Proceeds thereof shall be applied on the date of such incurrence
toward the prepayment of the Term Loans and the reduction of the Revolving
Commitments as set forth in Section 4.2(f).

 

38

 

(c)   If on any date any Group Member shall receive
Net Cash Proceeds from any Asset Sale (including sales or issuances of Capital
Stock of the Borrower or any of its Subsidiaries) or Recovery Event in excess
of $500,000 then, unless a Reinvestment Notice shall be delivered in respect
thereof, such Net Cash Proceeds shall be applied on such date toward the
prepayment of the Term Loans and the reduction of the Revolving Commitments as
set forth in Section 4.2(f); provided, that, notwithstanding the
foregoing, on each Reinvestment Prepayment Date, an amount equal to the
Reinvestment Prepayment Amount with respect to the relevant Reinvestment Event
shall be applied toward the prepayment of the Term Loans and the reduction of
the Revolving Commitments as set forth in Section 4.2(f).

 

(d)   If, for any fiscal year of the Borrower
commencing with the fiscal year ending December 31, 2007, there shall be
positive Excess Cash Flow, the Borrower shall, on the relevant Excess Cash Flow
Application Date, apply the ECF Percentage of such Excess Cash Flow toward the
prepayment of the Term Loans and the reduction of the Revolving Commitments as
set forth in Section 4.2(f).  Each such
prepayment and commitment reduction shall be made on a date (an “Excess Cash
Flow Application Date”) no later than five Business Days after the earlier
of (i) the date on which the financial statements of the Borrower referred to
in Section 7.1(a), for the fiscal year with respect to which such prepayment is
made, are required to be delivered to the Lenders and (ii) the date such
financial statements are actually delivered.

 

(e)   If on any date a Group Member shall receive
Net Cash Proceeds from any Allotted Disposition, then, unless a Reinvestment Notice
shall be delivered in respect thereof, an amount equal to 100% of such Net Cash
Proceeds shall be applied on such date toward the prepayment of the Term Loans
and the reduction of the Revolving Commitments as set forth in Section 4.2(f); provided
that, notwithstanding the foregoing, on each Reinvestment Prepayment Date, an
amount equal to the Reinvestment Prepayment Amount with respect to the relevant
Reinvestment Event shall be applied toward the prepayment of the Term Loans and
the reduction of the Revolving Commitments as set forth in Section 4.2(f).

 

(f)     Amounts to be applied in connection with
prepayments and Commitment reductions made pursuant to Section 4.2 shall be
applied, first, to the prepayment of the Term Loans and, second,
to reduce permanently the Revolving Commitments.  Any such reduction of the Revolving
Commitments shall be accompanied by prepayment of the Revolving Loans and/or
Swingline Loans to the extent, if any, that the Total Revolving Extensions of
Credit exceed the amount of the Total Revolving Commitments as so reduced, provided
that if the aggregate principal amount of Revolving Loans and Swingline Loans
then outstanding is less than the amount of such excess (because L/C
Obligations constitute a portion thereof), the Borrower shall, to the extent of
the balance of such excess, replace outstanding Letters of Credit and/or
deposit an amount in cash in a cash collateral account established with the
Administrative Agent for the benefit of the Lenders on terms and conditions
reasonably satisfactory to the Administrative Agent.  The application of any prepayment pursuant to
Section 4.2 shall be made, first, to Base Rate Loans and, second,
to Eurodollar Loans.  Each prepayment of
the Loans under Section 4.2 (except in the case of Revolving Loans that are
Base Rate Loans and Swingline Loans) shall be accompanied by accrued interest
to the date of such prepayment on the amount prepaid.

 

39

 

(g)    Notwithstanding the foregoing, upon its
receipt of the proceeds of the Term Loans, Borrower shall apply a portion of
such proceeds sufficient to (i) prepay in full the Existing Term Loans, (ii)
pay all accrued and unpaid interest and fees, if any, on all Existing Term
Loans held by Existing Lenders that are not Continuing Lenders, (iii) pay to
each Existing Lender that is not a Continuing Lender all amounts then due and
owing as a result of the prepayment of such Lender’s Existing Term Loans and
(iv) pay all other Obligations then due and owing to the Existing Lenders, in
their capacity as such, under the Original Credit Agreement.

 

4.3.          Conversion and Continuation Options.  (a) 
The Borrower may elect from time to time to convert Eurodollar Loans to
Base Rate Loans by giving the Administrative Agent prior irrevocable notice of
such election no later than 2:00 P.M., New York City time, on the Business Day
preceding the proposed conversion date, provided that any such conversion of
Eurodollar Loans may only be made on the last day of an Interest Period with
respect thereto.  The Borrower may elect
from time to time to convert Base Rate Loans to Eurodollar Loans by giving the
Administrative Agent prior irrevocable notice of such election no later than
2:00 P.M., New York City time, on the Business Day preceding the proposed
conversion date (which notice shall specify the length of the initial Interest
Period therefor), provided that no Base Rate Loan under a particular Facility
may be converted into a Eurodollar Loan when any Event of Default has occurred
and is continuing and the Administrative Agent or the Majority Facility Lenders
in respect of such Facility have determined in its or their sole discretion not
to permit such conversions and have given notice to the Borrower of such
determination.  Upon receipt of any such
notice the Administrative Agent shall promptly notify each relevant Lender
thereof.

 

(b)   Any Eurodollar Loan may be continued as such
upon the expiration of the then current Interest Period with respect thereto by
the Borrower giving irrevocable notice to the Administrative Agent, in
accordance with the applicable provisions of the term “Interest Period” set
forth in Section 1.1, of the length of the next Interest Period to be
applicable to such Loans, provided that no Eurodollar Loan under a
particular Facility may be continued as such when any Event of Default has
occurred and is continuing and the Administrative Agent has or the Majority
Facility Lenders in respect of such Facility have determined in its or their
sole discretion not to permit such continuations and have given notice to the
Borrower of such determination, and provided, further, that if
the Borrower shall fail to give any required notice as described above in this
paragraph or if such continuation is not permitted pursuant to the preceding
proviso such Loans shall be automatically converted to Base Rate Loans on the
last day of such then expiring Interest Period. 
Upon receipt of any such notice the Administrative Agent shall promptly
notify each relevant Lender thereof.

 

4.4.          Limitations on Eurodollar Tranches.  Notwithstanding anything to the contrary in
this Agreement, all borrowings, conversions and continuations of Eurodollar
Loans hereunder and all selections of Interest Periods hereunder shall be in
such amounts and be made pursuant to such elections so that, (a) after giving
effect thereto, the aggregate principal amount of the Eurodollar Loans
comprising each Eurodollar Tranche shall be equal to $500,000 or a whole
multiple of $500,000 in excess thereof and (b) no more than ten Eurodollar
Tranches shall be outstanding at any one time.

 

40

 

4.5.          Interest Rates and Payment Dates.  (a) 
Each Eurodollar Loan shall bear interest for each day during each
Interest Period with respect thereto at a rate per annum equal to the
Eurodollar Rate determined for such day plus the Applicable Margin.

 

(b)   Each Base Rate Loan shall bear interest at a
rate per annum equal to the Base Rate plus the Applicable Margin.

 

(c)   (i) If all or a portion of the principal
amount of any Loan or Reimbursement Obligation shall not be paid when due
(whether at the stated maturity, by acceleration or otherwise), such overdue
amount shall bear interest at a rate per annum equal to (x) in the case of the Loans,
the rate that would otherwise be applicable thereto pursuant to the foregoing
provisions of this Section plus 2% or (y) in the case of Reimbursement
Obligations, the rate applicable to Base Rate Loans under the Revolving
Facility plus 2%, and (ii) if all or a portion of any interest payable
on any Loan or Reimbursement Obligation or any fee payable hereunder shall not
be paid when due (whether at the stated maturity, by acceleration or
otherwise), such overdue amount shall bear interest at a rate per annum equal
to the rate then applicable to Base Rate Loans under the relevant Facility plus
2%, in each case, with respect to clauses (i) and (ii) above, from the date of
such non-payment until such amount is paid in full (after as well as before
judgment).

 

(d)   Interest shall be payable in arrears on each
Interest Payment Date, provided that interest accruing pursuant to
paragraph (c) of this Section shall be payable from time to time on demand.

 

4.6.          Computation of Interest and Fees.  (a) 
Interest and fees payable pursuant hereto shall be calculated on the
basis of a 360-day year for the actual days elapsed, except that, with respect
to Base Rate Loans the rate of interest on which is calculated on the basis of
the Prime Rate, the interest thereon shall be calculated on the basis of a 365-
(or 366-, as the case may be) day year for the actual days elapsed.  The Administrative Agent shall as soon as
practicable notify the Borrower and the relevant Lenders of each determination
of a Eurodollar Rate.  Any change in the
interest rate on a Loan resulting from a change in the Base Rate or the
Eurocurrency Reserve Requirements shall become effective as of the opening of
business on the day on which such change becomes effective.  The Administrative Agent shall as soon as
practicable notify the Borrower and the relevant Lenders of the effective date
and the amount of each such change in interest rate.

 

(b)   Each determination of an interest rate by the
Administrative Agent pursuant to any provision of this Agreement shall be
conclusive and binding on the Borrower and the Lenders in the absence of
manifest error.  The Administrative Agent
shall, at the request of the Borrower, deliver to the Borrower a statement
showing the quotations used by the Administrative Agent in determining any
interest rate pursuant to Section 4.5(a).

 

41

 

4.7.          Inability to Determine Interest Rate.  If prior to the first day of any Interest
Period:

 

(a)   the Administrative Agent shall have reasonably
determined (which determination shall be conclusive and binding upon the
Borrower) that, by reason of circumstances affecting the relevant market,
adequate and reasonable means do not exist for ascertaining the Eurodollar Rate
for such Interest Period, or

 

(b)    the Administrative Agent shall have received
notice from the Majority Facility Lenders in respect of the relevant Facility
that the Eurodollar Rate determined or to be determined for such Interest
Period will not adequately and fairly reflect the cost to such Lenders (as
conclusively certified by such Lenders in their reasonable discretion) of
making or maintaining their affected Loans during such Interest Period,

 

the
Administrative Agent shall give telecopy or telephonic notice thereof to the
Borrower and the relevant Lenders as soon as practicable thereafter.  If such notice is given (x) any Eurodollar
Loans under the relevant Facility requested to be made on the first day of such
Interest Period shall be made as Base Rate Loans, (y) any Loans under the
relevant Facility that were to have been converted on the first day of such
Interest Period to Eurodollar Loans shall be continued as Base Rate Loans and
(z) any outstanding Eurodollar Loans under the relevant Facility shall be
converted, on the last day of the then-current Interest Period, to Base Rate
Loans.  Until such condition no longer
exists, as determined by the Administrative Agent, no further Eurodollar Loans
under the relevant Facility shall be made or continued as such, nor shall the
Borrower have the right to convert Loans under the relevant Facility to
Eurodollar Loans.

 

4.8.          Pro Rata Treatment and Payments.  (a) 
Each borrowing by the Borrower from the Lenders hereunder, each payment
by the Borrower on account of any commitment fee and any reduction of the
Commitments of the Lenders shall be made pro rata according to the respective
Term Percentages or Revolving Percentages, as the case may be, of the relevant
Lenders.

 

(b)   Each payment (including each prepayment) by
the Borrower on account of principal of and interest on the Term Loans shall be
made pro  rata according to the respective outstanding principal
amounts of the Term Loans then held by the Term Lenders (except as otherwise
provided in Section 4.2(f)).  The amount
of each principal prepayment of the Term Loans shall be applied to reduce the
then remaining installments of the Term Loans pro  rata based upon
the then remaining principal amount thereof. 
Amounts prepaid on account of the Term Loans may not be reborrowed.

 

(c)   Each payment (including each prepayment) by
the Borrower on account of principal of and interest on the Revolving Loans
shall be made pro  rata according to the respective outstanding
principal amounts of the Revolving Loans then held by the Revolving Lenders.

 

(d)   All payments (including prepayments) to be
made by the Borrower hereunder, whether on account of principal, interest, fees
or otherwise, shall be made without setoff or counterclaim and shall be made
prior to 2:00 P.M., New York City time, on the due date thereof to the
Administrative Agent, for the account of the Lenders, at the Funding Office, in
Dollars and in immediately available funds. 
The Administrative Agent shall distribute such payments to the

 

42

 

Lenders promptly upon receipt
in like funds as received.  If any
payment hereunder (other than payments on the Eurodollar Loans) becomes due and
payable on a day other than a Business Day, such payment shall be extended to
the next succeeding Business Day.  If any
payment on a Eurodollar Loan becomes due and payable on a day other than a
Business Day, the maturity thereof shall be extended to the next succeeding
Business Day unless the result of such extension would be to extend such
payment into another calendar month, in which event such payment shall be made
on the immediately preceding Business Day. 
In the case of any extension of any payment of principal pursuant to the
preceding two sentences, interest thereon shall be payable at the then applicable
rate during such extension.

 

(e)   Unless the Administrative Agent shall have
been notified in writing by any Lender prior to a borrowing that such Lender
will not make the amount that would constitute its share of such borrowing
available to the Administrative Agent, the Administrative Agent may assume that
such Lender is making such amount available to the Administrative Agent, and
the Administrative Agent may, in reliance upon such assumption, make available
to the Borrower a corresponding amount. 
If such amount is not made available to the Administrative Agent by the
required time on the Borrowing Date therefor, such Lender shall pay to the
Administrative Agent, on demand, such amount with interest thereon at a rate
equal to the greater of (i) the Federal Funds Effective Rate and (ii) a rate
determined by the Administrative Agent in accordance with banking industry
rules on interbank compensation for the period until such Lender makes such
amount immediately available to the Administrative Agent.  A certificate of the Administrative Agent
submitted to any Lender with respect to any amounts owing under this paragraph
shall be conclusive in the absence of manifest error.  If such Lender’s share of such borrowing is
not made available to the Administrative Agent by such Lender within three
Business Days of such Borrowing Date, the Administrative Agent shall also be
entitled to recover such amount with interest thereon at the rate per annum
applicable to Base Rate Loans under the relevant Facility, on demand, from the
Borrower.

 

(f)    Unless the Administrative Agent shall have
been notified in writing by the Borrower prior to the date of any payment due
to be made by the Borrower hereunder that the Borrower will not make such
payment to the Administrative Agent, the Administrative Agent may assume that
the Borrower is making such payment, and the Administrative Agent may, but
shall not be required to, in reliance upon such assumption, make available to
the Lenders their respective pro  rata shares of a corresponding
amount.  If such payment is not made to
the Administrative Agent by the Borrower within three Business Days after such
due date, the Administrative Agent shall be entitled to recover, on demand,
from each Lender to which any amount which was made available pursuant to the
preceding sentence, such amount with interest thereon at the rate per annum
equal to the daily average Federal Funds Effective Rate.  Nothing herein shall be deemed to limit the
rights of the Administrative Agent or any Lender against the Borrower.

 

4.9.          Requirements of Law. 
(a)  If the adoption of or any
change in any Requirement of Law or in the interpretation or application
thereof or compliance by any Lender with any request or directive (whether or
not having the force of law) from any central bank or other Governmental
Authority made subsequent to the date hereof:

 

43

 

(i)            shall
subject any Lender to any tax of any kind whatsoever with respect to this
Agreement, any Letter of Credit, any Application or any Eurodollar Loan made by
it, or change the basis of taxation of payments to such Lender in respect
thereof (except for Non-Excluded Taxes covered by Section 4.10 and changes in
the rate of tax on the overall net income of such Lender);

 

(ii)           shall
impose, modify or hold applicable any reserve, special deposit, compulsory loan
or similar requirement against assets held by, deposits or other liabilities in
or for the account of, advances, loans or other extensions of credit by, or any
other acquisition of funds by, any office of such Lender that is not otherwise
included in the determination of the Eurodollar Rate hereunder; or

 

(iii)          shall
impose on such Lender any other condition;

 

and the result
of any of the foregoing is to increase the cost to such Lender, by an amount
that such Lender reasonably deems to be material, of making, converting into,
continuing or maintaining Eurodollar Loans or issuing or participating in
Letters of Credit, or to reduce any amount receivable hereunder in respect
thereof, then, in any such case, the Borrower shall, within ten Business Days
after receiving written notice from such Lender setting forth in reasonable
detail such cost, pay such Lender, upon its demand, any additional amounts
necessary to compensate such Lender for such increased cost or reduced amount
receivable.  If any Lender becomes
entitled to claim any additional amounts pursuant to this paragraph, it shall
promptly notify the Borrower (with a copy to the Administrative Agent) of the
event by reason of which it has become so entitled.

 

(b)   If any Lender shall have determined that the
adoption of or any change in any Requirement of Law regarding capital adequacy
or in the interpretation or application thereof or compliance by such Lender or
any Person controlling such Lender with any request or directive regarding
capital adequacy (whether or not having the force of law) from any Governmental
Authority made subsequent to the date hereof shall have the effect of reducing
the rate of return on such Lender’s or such Person’s capital as a consequence
of its obligations hereunder or under or in respect of any Letter of Credit to
a level below that which such Lender or such Person could have achieved but for
such adoption, change or compliance (taking into consideration such Lender’s or
such Person’s policies with respect to capital adequacy) by an amount
reasonably deemed by such Lender to be material, then from time to time, within
ten Business Days after submission by such Lender to the Borrower (with a copy
to the Administrative Agent) of a written request therefor setting forth such
amount in reasonable detail, the Borrower shall pay to such Lender such
additional amount or amounts as will compensate such Lender or such corporation
for such reduction.

 

(c)   A certificate as to any additional amounts
payable pursuant to this Section submitted by any Lender to the Borrower (with
a copy to the Administrative Agent) shall be conclusive in the absence of
manifest error.  Notwithstanding anything
to the contrary in this Section, the Borrower shall not be required to
compensate a Lender pursuant to this Section for any amounts incurred more than
six months prior to the date that such Lender notifies the Borrower of such
Lender’s intention to claim compensation therefor; provided that, if the

 

44

 

circumstances giving rise to
such claim have a retroactive effect, then such six-month period shall be
extended to include the period of such retroactive effect.  The obligations of the Borrower pursuant to
this Section shall survive the termination of this Agreement and the payment of
the Loans and all other amounts payable hereunder.

 

4.10.        Taxes.  (a)  All payments made by or on behalf of the
Borrower under this Agreement or any other Loan Document shall be made free and
clear of, and without deduction or withholding for or on account of, any
present or future income, stamp or other taxes, levies, imposts, duties,
charges, fees, deductions or withholdings, now or hereafter imposed, levied,
collected, withheld or assessed by any Governmental Authority, excluding net
income taxes, branch profit taxes imposed by the United States and franchise
taxes (imposed in lieu of net income taxes) imposed on any Agent or any Lender
as a result of a present or former connection between such Agent or such Lender
and the jurisdiction of the Governmental Authority imposing such tax or any
political subdivision or taxing authority thereof or therein (other than any
such connection arising solely from such Agent or such Lender having executed,
delivered or performed its obligations or received a payment under, or
enforced, this Agreement or any other Loan Document).  If any such non-excluded taxes, levies,
imposts, duties, charges, fees, deductions or withholdings (“Non-Excluded
Taxes”) or Other Taxes are required to be withheld from any amounts payable
to any Agent or any Lender hereunder, the amounts so payable to such Agent or
such Lender shall be increased to the extent necessary to yield to such Agent
or such Lender (after payment of all Non-Excluded Taxes and Other Taxes)
interest or any such other amounts payable hereunder at the rates or in the
amounts specified in this Agreement, provided, however, that the Borrower shall
not be required to increase any such amounts payable to any Lender with respect
to any Non-Excluded Taxes (i) that are attributable to such Lender’s failure to
comply with the requirements of paragraph (e) or (f) of this Section or (ii)
that are United States withholding taxes imposed on amounts payable to such
Lender at the time such Lender becomes a party to this Agreement, except to the
extent that such Lender’s assignor (if any) was entitled, at the time of
assignment, to receive additional amounts from the Borrower with respect to
such Non-Excluded Taxes pursuant to this paragraph.  The Borrower shall make (or cause to be made)
any required deduction or withholding and pay (or cause to be paid) the full
amount deducted or withheld to the relevant Governmental Authority in
accordance with applicable law.

 

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

 

(c)   Whenever any Non-Excluded Taxes or Other
Taxes are payable by the Borrower, as promptly as possible thereafter the
Borrower shall send to the Administrative Agent for its own account or for the
account of the relevant Agent or Lender, as the case may be, a certified copy
of an original official receipt received by the Borrower showing payment
thereof.  If the Borrower fails to pay
any Non-Excluded Taxes or Other Taxes when due to the appropriate taxing
authority or fails to remit to the Administrative Agent the required receipts
or other required documentary evidence, the Borrower shall indemnify the Agents
and the Lenders for any incremental taxes, interest or penalties that may
become payable by any Agent or any Lender as a result of any such failure.

 

45

 

(d)   The Borrower shall indemnify the
Administrative Agent and any Lender for the full amount of Non-Excluded Taxes
(to the extent the Borrower would be required to pay additional amounts with
respect to such Non-Excluded Taxes pursuant to Section 4.10(a)) or Other Taxes
arising in connection with payments made under this Agreement (including,
without limitation, any Non-Excluded Taxes or Other Taxes imposed by any
jurisdiction on amounts payable under this Section 4.10) or any other Loan
Document paid by such Agent or Lender or any of their respective Affiliates and
any liability (including penalties, additions to tax, interest and expenses)
arising therefrom or with respect thereto, whether or not such Non-Excluded
Taxes or Other Taxes were correctly or legally asserted.  Payment under this indemnification shall be
made within ten days from the date the Administrative Agent or any Lender or
any of their respective Affiliates makes written demand therefor; provided,
that the Borrower shall not be required to indemnify the Administrative Agent
or any Lender pursuant to this Section 4.10(d) for any amounts incurred more
than six months prior to the date the Administrative Agent or such Lender makes
such written demand therefor; provided  further that if the
circumstance giving rise to such claim have a retroactive effect, then such six
month period shall be extended to include such period of retroactive effect.

 

(e)   Each Lender (or Transferee) that is not a
“U.S. Person” as defined in Section 7701(a)(30) of the Code (a “Non-U.S.
Lender”) shall deliver to the Borrower and the Administrative Agent (or, in
the case of a Participant, to the Lender from which the related participation
shall have been purchased) two copies of either U.S. Internal Revenue Service
Form W-8BEN and/or Form W-8 IMY, as applicable (claiming benefits of an
applicable tax treaty) or Form W-8ECI, or, in the case of a Non-U.S. Lender
claiming exemption from U.S. federal withholding tax under Section 871(h) or
881(c) of the Code with respect to payments of “portfolio interest”, a
statement substantially in the form of Exhibit G and a Form W-8BEN, or in each
case any subsequent versions thereof or successors thereto, properly completed
and duly executed by such Non-U.S. Lender claiming complete exemption from, or
a reduced rate of, U.S. federal withholding tax on all payments by the Borrower
under this Agreement and the other Loan Documents.  Such forms shall be delivered by each Non-U.S.
Lender on or before the date it becomes a party to this Agreement (or, in the
case of any Participant, on or before the date such Participant purchases the
related participation).  In addition,
each Non-U.S. Lender shall deliver such forms promptly upon the obsolescence or
invalidity of any form previously delivered by such Non-U.S. Lender including,
but not limited to, as a result of any change in applicable law, regulation or
treaty, or in any official application or interpretation thereof.  Each Non-U.S. Lender shall promptly notify
the Borrower at any time it determines that it is no longer in a position to
provide any previously delivered certificate to the Borrower (or any other form
of certification adopted by the U.S. taxing authorities for such purpose).  Notwithstanding any other provision of this
paragraph, a Non-U.S. Lender shall not be required to deliver any form pursuant
to this paragraph that such Non-U.S. Lender is not legally able to deliver.

 

(f)    A Lender that is entitled to an exemption
from or reduction of non-U.S. withholding tax under the law of the jurisdiction
in which the Borrower is located, or any treaty to which such jurisdiction is a
party, with respect to payments under this Agreement shall deliver to the
Borrower (with a copy to the Administrative Agent), at the time or times
prescribed by applicable law and as reasonably requested in writing by the
Borrower, such properly completed

 

46

 

and executed documentation
prescribed by applicable law as will permit such payments to be made without
withholding or at a reduced rate, provided that such Lender is legally
entitled to complete, execute and deliver such documentation and in such
Lender’s judgment such completion, execution or submission would not materially
prejudice the legal position of such Lender.

 

(g)   If any Administrative
Agent or any Lender determines, in its sole discretion, that it has received a
refund of any Non-Excluded Taxes or Other Taxes as to which it has been
indemnified by the Borrower or with respect to which the Borrower has paid
additional amounts pursuant to this Section 4.10, it shall pay over such refund
to the Borrower (but only to the extent of indemnity payments made, or
additional amounts paid, by the Borrower under this Section 4.10 with respect
to the Non-Excluded Taxes or Other Taxes giving rise to such refund), net of
all out-of-pocket expenses of such Agent or such Lender and without interest
(other than any interest paid by the relevant Governmental Authority with
respect to such refund); provided, that the Borrower, upon the request
of such Agent or such Lender, agrees to repay the amount paid over to the
Borrower (plus any penalties, interest or other charges imposed by the relevant
Governmental Authority) to such Agent or such Lender in the event such Agent or
such Lender is required to repay such refund to such Governmental
Authority.  This paragraph shall not be
construed to require any Agent or any Lender to make available its tax returns
(or any other information relating to its taxes which it deems confidential) to
the Borrower or any other Person.

 

(h)   For purposes of this Section 4.10, in the
case of any Lender that is treated as a partnership for U.S. federal income tax
purposes, any Non-Excluded Taxes or Other Taxes required to be deducted and
withheld by such Lender with respect to payments made by the Borrower under any
Loan Document shall be treated as Non-Excluded Taxes or Other Taxes required to
be deducted by the Borrower, but only to the extent such Non-Excluded Taxes or
Other Taxes would have been required to be deducted and withheld by the Lender
if the Lender were treated as a corporation for U.S. federal income tax
purposes making such payments under the Loan Documents on behalf of the
Borrower.

 

(i)    The agreements in this Section shall survive
the termination of this Agreement and the payment of the Loans and all other
amounts payable hereunder.

 

4.11.        Indemnity.  The
Borrower agrees to indemnify each Lender and to hold each Lender harmless from
any loss or expense that such Lender may sustain or incur as a consequence of
(a) default by the Borrower in making a borrowing of, conversion into or
continuation of Eurodollar Loans after the Borrower has given a notice
requesting the same in accordance with the provisions of this Agreement (unless
Eurodollar Loans are made unavailable to the Borrower pursuant to Section 4.7
or 4.15), (b) default by the Borrower in making any prepayment of or conversion
from Eurodollar Loans after the Borrower has given a notice thereof in
accordance with the provisions of this Agreement or (c) the making of a
prepayment of Eurodollar Loans on a day that is not the last day of an Interest
Period with respect thereto.  Such
indemnification may include an amount equal to the excess, if any, of (i) the amount
of interest that would have accrued on the amount so prepaid, or not so
borrowed, converted or continued, for the period from the date of such
prepayment or of such failure to borrow, convert or continue

 

47

 

to the last day of such Interest Period (or, in the case of a failure
to borrow, convert or continue, the Interest Period that would have commenced
on the date of such failure) in each case at the applicable rate of interest
for such Loans provided for herein (excluding, however, the Applicable Margin
included therein, if any) minus (ii) the amount of interest (as
reasonably determined by such Lender) that would have accrued to such Lender on
such amount by placing such amount on deposit for a comparable period with
leading banks in the interbank eurodollar market.  A certificate as to any amounts payable
pursuant to this Section submitted to the Borrower by any Lender shall contain
calculation of such amount in reasonable detail and shall be conclusive in the
absence of manifest error.  This covenant
shall survive the termination of this Agreement and the payment of the Loans
and all other amounts payable hereunder.

 

4.12.        Change of Lending Office.  Each Lender agrees that, upon the occurrence
of any event giving rise to the operation of Section 4.9, 4.10 or 4.15 with
respect to such Lender, it will, if requested by the Borrower, use reasonable
efforts (subject to overall policy considerations of such Lender) to designate
another lending office for any Loans affected by such event with the object of
avoiding the consequences of such event; provided, that such designation is
made on terms that, in the reasonable judgment of such Lender, cause such
Lender and its lending office(s) to suffer no economic, legal or regulatory
disadvantage, and provided, further, that nothing in this Section shall affect
or postpone any of the obligations of the Borrower or the rights of any Lender
pursuant to Section 4.9, 4.10 or 4.15.

 

4.13.        Replacement of Lenders. 
The Borrower shall be permitted to replace any Lender that (a) requests
reimbursement for amounts owing pursuant to Section 4.9 or 4.10, (b) defaults
in its obligation to make Loans hereunder, or (c) declines to deliver any
required consent to a proposed waiver or modification of any provision of the
Loan Documents as contemplated by Section 11.1 that has been consented to by
the Borrower, Administrative Agent, Required Lenders and, if otherwise
required, Majority Facility Lenders, with a replacement financial institution
(which replacement institution in the case of clause (c) is willing to deliver
such consent); provided that (i) such replacement does not conflict with any
Requirement of Law, (ii) no Event of Default shall have occurred and be
continuing at the time of such replacement, (iii) prior to any such
replacement, such Lender shall have taken no action under Section 4.12 so as to
eliminate the continued need for payment of amounts owing pursuant to Section
4.9 or 4.10, (iv) the replacement financial institution shall purchase, at par,
all Loans and other amounts owing to such replaced Lender on or prior to the
date of replacement, (v) the Borrower shall be liable to such replaced Lender
under Section 4.11 if any Eurodollar Loan owing to such replaced Lender shall
be purchased other than on the last day of the Interest Period relating
thereto, (vi) the replacement financial institution, if not already a Lender,
shall be reasonably satisfactory to the Administrative Agent, (vii) the
replaced Lender shall be obligated to make such replacement in accordance with
the provisions of Section 11.6 (provided that the Borrower shall be obligated
to pay the registration and processing fee referred to therein), (viii) until
such time as such replacement shall be consummated, the Borrower shall pay all
additional amounts (if any) required pursuant to Section 4.9 or 4.10, as the
case may be, and (ix) any such replacement shall not be deemed to be a
waiver of any rights that the Borrower, the Administrative Agent or any other
Lender shall have against the replaced Lender.

 

48

 

4.14.        Evidence of Debt. 
(a)  Each Lender shall maintain in
accordance with its usual practice an account or accounts evidencing
Indebtedness of the Borrower to such Lender resulting from each Loan of such
Lender from time to time, including the amounts of principal and interest
payable and paid to such Lender from time to time under this Agreement.

 

(b)   The Administrative Agent, on behalf of the
Borrower, shall maintain the Register pursuant to Section 11.6(b), and a
subaccount therein for each Lender, in which shall be recorded (i) the amount of each Loan made hereunder and
any Note evidencing such Loan, the Type of such Loan and each Interest Period
applicable thereto, (ii) the amount of
any principal or interest due and payable or to become due and payable from the
Borrower to each Lender hereunder and (iii)
both the amount of any sum received by the Administrative Agent hereunder from
the Borrower and each Lender’s share thereof.

 

(c)   The entries made in the Register and the
accounts of each Lender maintained pursuant to Section 4.14(a) shall, to the
extent permitted by applicable law, be prima  facie evidence of
the existence and amounts of the obligations of the Borrower therein recorded; provided,
however, that the failure of any Lender or the Administrative Agent to
maintain the Register or any such account, or any error therein, shall not in
any manner affect the obligation of the Borrower to repay (with applicable
interest) the Loans made to the Borrower by such Lender in accordance with the
terms of this Agreement.

 

(d)   The Borrower agrees that, upon the request to
the Administrative Agent by any Lender, the Borrower will execute and deliver
to such Lender a promissory note of the Borrower evidencing any Term Loans,
Revolving Credit Loans or Swingline Loans, as the case may be, of such Lender,
substantially in the forms of Exhibit H-1, H-2 or H-3, respectively, with
appropriate insertions as to date and principal amount.

 

4.15.        Illegality. 
Notwithstanding any other provision herein, if the adoption of or any
change in any Requirement of Law or in the interpretation or application
thereof shall make it unlawful for any Lender to make or maintain Eurodollar
Loans as contemplated by this Agreement, (a)
the commitment of such Lender hereunder to make Eurodollar Loans, continue
Eurodollar Loans as such and convert Base Rate Loans to Eurodollar Loans shall
forthwith be suspended until such time as such condition no longer exists, as
determined by the Administrative Agent and (b)
such Lender’s Loans then outstanding as Eurodollar Loans, if any, shall be
converted automatically to Base Rate Loans on the respective last days of the
then current Interest Periods with respect to such Loans or within such earlier
period as required by law.  If any such
conversion of a Eurodollar Loan occurs on a day which is not the last day of
the then current Interest Period with respect thereto, the Borrower shall pay
to such Lender such amounts, if any, as may be required pursuant to Section
4.11.

 

SECTION 5.  REPRESENTATIONS AND WARRANTIES

 

To induce the Agents and the Lenders to enter
into this Agreement and to make the Loans and issue or participate in the
Letters of Credit, Holdings and the Borrower hereby jointly and severally
represent and warrant to each Agent and each Lender that:

 

49

 

5.1.          Financial Condition. 
(a)  The unaudited pro forma
consolidated balance sheet of Holdings and its consolidated Subsidiaries as at
December 31, 2005 (including the notes thereto) (the “Pro Forma Balance
Sheet”), copies of which have heretofore been furnished to each Lender, has
been prepared giving effect (as if such events had occurred on such date) to
(i) the Loans to be made on the Restatement Date and the use of proceeds thereof
and (ii) the payment of fees and expenses in connection with the
foregoing.  The Pro Forma Balance Sheet
presents fairly in all material respects on a pro forma basis the estimated
financial position of Holdings and its consolidated Subsidiaries as at December
31, 2005, assuming that the events specified in the preceding sentence had
actually occurred at such date.

 

(b)   The audited consolidated balance sheets of
Holdings as at December 31, 2005, December 31, 2004 and December 31, 2003, and
the related consolidated statements of income and of cash flows for the fiscal
years ended on such dates (including any related schedules and notes thereto),
reported on by and accompanied by a report from Deloitte & Touche LLP,
present fairly in all material respects the consolidated financial condition of
Holdings as at such date, and the consolidated results of its operations and
its consolidated cash flows for the respective fiscal years then ended.  All such financial statements, including any
related schedules and notes thereto, have been prepared in accordance with GAAP
applied consistently throughout the periods involved (except as disclosed
therein). As of the Restatement Date, no Group Member has any material
Guarantee Obligations, contingent liabilities and liabilities for taxes, or any
long-term leases or unusual forward or long-term commitments, including any
interest rate or foreign currency swap or exchange transaction or other
obligation in respect of derivatives, that are not reflected in the most recent
financial statements referred to in this paragraph.  During the period from December 31, 2005 to
and including the date hereof there has been no Disposition by Holdings or any
of its Subsidiaries of any material part of its business or property.

 

5.2.          No Change.  As
of the Restatement Date, since December 31, 2004, there has been no
development, event or circumstance that, individually or in the aggregate, has
had or could reasonably be expected to have a Material Adverse Effect.

 

5.3.          Corporate Existence; Compliance with Law.  Each Group Member (a) is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
organization, (b) has the power and authority, and the legal right, to own and
operate its property, to lease the property it operates as lessee and to
conduct the business in which it is currently engaged, (c) is duly qualified as
a foreign corporation and in good standing under the laws of each jurisdiction
where its ownership, lease or operation of property or the conduct of its
business requires such qualification except in jurisdictions where the failure
to be so qualified or in good standing could not reasonably be expected to have
a Material Adverse Effect. and (d) is in compliance with all Requirements of Law
except to the extent that the failure to comply therewith could not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

 

5.4.          Power; Authorization; Enforceable Obligations.  Each Loan Party has the power and authority,
and the legal right, to make, deliver and perform the Loan Documents to which
it is a party and, in the case of the Borrower, to obtain extensions of credit
hereunder.  Each Loan Party has taken all
necessary organizational action to authorize the execution,

 

50

 

delivery and performance of the Loan Documents to which it is a party
and, in the case of the Borrower, to authorize the extensions of credit on the
terms and conditions of this Agreement. 
No consent or authorization of, filing with, notice to or other act by
or in respect of, any Governmental Authority or any other Person is required in
connection with the extensions of credit hereunder or with the execution,
delivery, performance, validity or enforceability of this Agreement or any of
the Loan Documents, except (i) consents, authorizations, filings and notices
described in Schedule 5.4, which consents, authorizations, filings and notices
have been obtained or made and are in full force and effect, (ii) the filings
referred to in Section 5.19 and (iii) those consents, authorizations, filings
and notices the failure of which to make or obtain, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse Effect.  Each Loan Document has been duly executed and
delivered on behalf of each Loan Party thereto. 
This Agreement constitutes, and each other Loan Document upon execution
will constitute, a legal, valid and binding obligation of each Loan Party
thereto, enforceable against each such Loan Party in accordance with its terms,
except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors’ rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law).

 

5.5.          No Legal Bar. 
The execution, delivery and performance of this Agreement and the other
Loan Documents, the issuance of Letters of Credit, the borrowings hereunder and
the use of the proceeds thereof will not violate any Requirement of Law or any
material Contractual Obligation of any Group Member and will not result in, or
require, the creation or imposition of any Lien on any of their respective
properties or revenues pursuant to any Requirement of Law or any such
Contractual Obligation (other than the Liens created by the Security
Documents).  No Requirement of Law or
Contractual Obligation (assuming no defaults thereunder) applicable to the
Borrower or any of its Subsidiaries could, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

 

5.6.          Litigation.  No
litigation, investigation or proceeding of or before any arbitrator or
Governmental Authority is pending or, to the knowledge of Holdings or the
Borrower, threatened by or against any Group Member or against any of their
respective properties or revenues (a) with respect to any of the Loan Documents
or any of the transactions contemplated hereby or thereby or (b) that, if
adversely determined or settled, could reasonably be expected to have a
Material Adverse Effect.

 

5.7.          No Default.  No
Group Member is in default under or with respect to any of its Contractual
Obligations in any respect that could, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

 

5.8.          Ownership of Property; Liens.  Each Group Member has good and marketable
title in fee simple to, or a valid leasehold interest in, all its real
property, including the Properties, and good title to, or a valid leasehold
interest in, all its other material property, and none of such property is
subject to any Lien except as permitted by Section 8.3.

 

5.9.          Intellectual Property. 
Except as could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect, each Group Member owns,

 

51

 

or is licensed to use, all Intellectual Property necessary for the
conduct of its business as currently conducted. No material claim has been
asserted and is pending by any Person challenging or questioning the use of any
Intellectual Property or the validity or effectiveness of any Intellectual
Property, nor does Holdings or the Borrower know of any valid basis for any
such claim.  The use of Intellectual
Property by each Group Member does not infringe on the rights of any Person in
any material respect.

 

5.10.        Taxes.  Each Group
Member has filed or caused to be filed all Federal and State income tax returns
and all other material tax returns that are required to be filed and has paid
all taxes shown to be due and payable on said returns or on any assessments
made against it or any of its Property and all other taxes, fees or other
charges imposed on it or any of its property by any Governmental Authority
(other than (a) any the amount or validity of which are currently being
contested in good faith by appropriate proceedings and with respect to which
reserves in conformity with GAAP have been provided on the books of Holdings,
the Borrower or its Subsidiaries, as the case may be or (b) if the failure to
pay would not, individually or in the aggregate, reasonably be expected to have
a Material Adverse Effect).

 

5.11.        Federal Regulations. 
No part of the proceeds of any Loans, and no other extensions of credit
hereunder, will be used for “buying” or “carrying” any “margin stock” within
the respective meanings of each of the quoted terms under Regulation U as now
and from time to time hereafter in effect or for any purpose that violates the
provisions of the Regulations of the Board. 
If requested by any Lender or the Administrative Agent, the Borrower
will furnish to the Administrative Agent and each Lender a statement to the
foregoing effect in conformity with the requirements of FR Form G-3 or FR Form
U-1, as applicable, referred to in Regulation U.

 

5.12.        Labor Matters. 
Except as, individually or in the aggregate, could not reasonably be
expected to have a Material Adverse Effect: 
(a) there are no strikes or other labor disputes against any Group
Member pending or, to the knowledge of Holdings or the Borrower, threatened;
(b) hours worked by and payment made to employees of each Group Member have not
been in violation of the Fair Labor Standards Act or any other applicable
Requirement of Law dealing with such matters; and (c) all payments due from any
Group Member on account of employee health and welfare insurance have been paid
or accrued as a liability on the books of the relevant Group Member.

 

5.13.        ERISA.  Neither a
Reportable Event nor an “accumulated funding deficiency” (within the meaning of
Section 412 of the Code or Section 302 of ERISA) has occurred during the
five-year period prior to the date on which this representation is made or
deemed made with respect to any Single Employer Plan, and each Plan has
complied in all material respects with the applicable provisions of ERISA and
the Code except where failure to do so would cause a liability which would not
be material.  No termination of a Single
Employer Plan has occurred, and no Lien in favor of the PBGC or a Plan has
arisen, during such five-year period. 
The present value of all accrued benefits under each Single Employer
Plan (based on those assumptions used to fund such Plans) did not, as of the
last annual valuation date prior to the date on which this representation is
made or deemed made, exceed the value of the assets of such Plan allocable to
such accrued benefits by a material amount. 
Neither the Borrower nor any

 

52

 

Commonly Controlled Entity has had a complete or partial withdrawal
from any Multiemployer Plan that has resulted or could reasonably be expected
to result in a material liability under ERISA, and neither the Borrower nor any
Commonly Controlled Entity would become subject to any material liability under
ERISA if the Borrower or any such Commonly Controlled Entity were to withdraw
completely from all Multiemployer Plans as of the valuation date most closely
preceding the date on which this representation is made or deemed made.  To the knowledge of the Borrower after due
inquiry, no such Multiemployer Plan is in Reorganization or Insolvent.

 

5.14.        Investment Company Act; Other Regulations.  No Loan Party is an “investment company”, or
a company “controlled” by an “investment company”, required to be registered as
such within the meaning of the Investment Company Act of 1940, as amended.  No Loan Party is subject to regulation under
any Requirement of Law (other than Regulation X of the Board) that limits its
ability to incur Indebtedness.

 

5.15.        Subsidiaries. 
Except as disclosed to the Administrative Agent by the Borrower in
writing from time to time after the Closing Date, (a) Schedule 5.15 sets forth the name and jurisdiction of
incorporation of each Subsidiary and, as to each such Subsidiary, the
percentage of each class of Capital Stock owned by any Loan Party and (b) there are no outstanding subscriptions,
options, warrants, calls, rights or other agreements or commitments (other than
stock options and other equity awards granted to employees or directors and
directors’ qualifying shares) of any nature relating to any Capital Stock of
the Borrower or any Subsidiary, except as created by the Loan Documents.

 

5.16.        Use of Proceeds. 
The proceeds of the Term Loans shall be used to repay in full the
Refinanced Indebtedness and to pay related fees and expenses.  In addition, a portion of the remaining
proceeds may be used to pay dividends to equityholders of Holdings and to pay
special bonuses to members of management of the Borrower or Holdings in
connection with the payment of such dividends pursuant to Sections 8.6(d) and
(e), in each case within thirty days of the Restatement Date.  The proceeds of the Revolving Loans shall be
used, together with the proceeds of the Swingline Loans and the Letters of
Credit, for general corporate purposes.

 

5.17.        Environmental Matters. 
Except as, individually or in the aggregate, would not reasonably be
expected to have a Material Adverse Effect:

 

(a)   the facilities and properties owned, leased
or operated by any Group Member (the “Properties”) do not contain, and
have not previously contained, any Materials of Environmental Concern in
amounts or concentrations or under circumstances that constitute or constituted
a violation of, or could give rise to liability under, any Environmental Law;

 

(b)   no Group Member has received or is aware of
any actual or threatened notice of violation, alleged violation,
non-compliance, liability or potential liability regarding environmental
matters or compliance with Environmental Laws with regard to any of the
Properties or the business operated by any Group Member (the “Business”),
nor does Holdings or the Borrower have knowledge or reason to believe that any
such notice will be received or is being threatened;

 

53

 

(c)   no judicial proceeding or governmental or
administrative action is pending or, to the knowledge of Holdings and the
Borrower, threatened, under any Environmental Law to which any Group Member is
or will be named as a party with respect to the Properties or the Business, nor
are there any consent decrees or other decrees, consent orders, administrative
orders or other orders, or other administrative or judicial requirements
outstanding under any Environmental Law with respect to the Properties or the
Business;

 

(d)   the Properties and all operations at the
Properties are in compliance, and have in the last five years been in
compliance, with all applicable Environmental Laws, and there is no
contamination at, under or about the Properties or violation of any
Environmental Law with respect to the Properties or the Business; and

 

(e)   no Group Member has assumed any liability of
any other Person under Environmental Laws.

 

5.18.        Accuracy of Information, etc.  No statement or information contained in this
Agreement, any other Loan Document, the Confidential Information Memorandum,
the Lender Presentation or any other document, certificate or statement
(excluding any projections, proforma financial information or estimates)
furnished by or on behalf of any Loan Party to the Administrative Agent or the
Lenders, or any of them, for use in connection with the transactions
contemplated by this Agreement or the other Loan Documents, taken as a whole,
contained as of the date such statement, information, document or certificate
was so furnished (or, in the case of the Confidential Information Memorandum,
as of the Closing Date, and in the case of the Lender Presentation, as of the
Restatement Date), any untrue statement of a material fact or omitted to state
a material fact necessary to make the statements contained herein or therein
not misleading.  The projections and pro
forma financial information contained in the materials referenced above are
based upon good faith estimates and assumptions believed by management of the
Borrower to be reasonable at the time made, it being recognized by the Lenders
that such financial information as it relates to future events is not to be
viewed as fact and that actual results during the period or periods covered by
such financial information may differ from the projected results set forth
therein by a material amount.  As of the
Restatement Date, there is no fact known to any Loan Party that could,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect that has not been expressly disclosed herein, in the other Loan
Documents, in the Confidential Information Memorandum, the Lender Presentation
or in any other documents, certificates and statements furnished to the
Administrative Agent and the Lenders for use in connection with the
transactions contemplated hereby and by the other Loan Documents.

 

5.19.        Security Documents. 
(a)  The Guarantee and Collateral
Agreement is effective to create in favor of the Administrative Agent, for the
benefit of the Secured Parties, a legal, valid and enforceable (except as
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors’ rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law)) security interest in
the Collateral described therein and proceeds and products thereof.  In the case of the Pledged Stock described in
the Guarantee and Collateral Agreement, when stock certificates representing
such Pledged Stock are delivered to the

 

54

 

Administrative Agent, and in the case of the other Collateral described
in the Guarantee and Collateral Agreement, when financing statements and other
filings specified on Schedule 5.19(a) in appropriate form are filed in the
offices specified on Schedule 5.19(a), the Guarantee and Collateral
Agreement shall constitute a fully perfected Lien on, and security interest in,
all right, title and interest of the Loan Parties in such Collateral and the
proceeds thereof, as security for the Obligations (as defined in the Guarantee and
Collateral Agreement), in each case prior and superior in right to any other
Person (except, in the case of Pledged Stock, Liens arising as a matter of law
that do not detract from the value thereof in any material respect, and in the
case of Collateral other than Pledged Stock, Liens permitted by Section 8.3).

 

(b)   Each of the Mortgages is effective to create
in favor of the Administrative Agent, for the benefit of the Secured Parties, a
legal, valid and enforceable (except as enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditors’ rights generally and by general
equitable principles (whether enforcement is sought by proceedings in equity or
at law)) Lien on the Mortgaged Properties described therein and proceeds and
products thereof, and when the Mortgages are filed in the offices specified on
Schedule 5.19(b), each such Mortgage shall constitute a fully perfected
Lien on, and security interest in, all right, title and interest of the Loan
Parties in the Mortgaged Properties and the proceeds thereof, as security for
the Obligations (as defined in the relevant Mortgage), in each case prior and
superior in right to any other Person, subject to Liens permitted by Section
8.3.

 

(c)   Each Intellectual Property Security Agreement
is effective to create in favor of the Administrative Agent, for the benefit of
the Secured Parties, a legal, valid and enforceable (except as enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium
or similar laws affecting the enforcement of creditors’ rights generally and by
general equitable principles (whether enforcement is sought by proceedings in
equity or at law)) security interest in the Intellectual Property Collateral
described therein and the proceeds and products thereof.  Upon the filing of (i) each Intellectual
Property Security Agreement in the appropriate indexes of the United States
Patent and Trademark Office relative to patents and trademarks, and the United
States Copyright Office relative to copyrights, together with provision for
payment of all requisite fees, and (ii) financing statements in appropriate
form for filing in the offices specified on Schedule 5.19(a), each Intellectual
Property Security Agreement shall constitute a fully perfected Lien on, and
security interest in, all right, title and interest of the Loan Parties in the
Intellectual Property Collateral and the proceeds and products thereof, as
security for the Obligations (as defined in the Guarantee and Collateral
Agreement), in each case prior and superior in right to any other Person
(except Liens permitted by Section 8.3). 
Schedule 1.1(b) lists, as of the Restatement Date, each parcel of
federally registered or recorded Intellectual Property, including Intellectual
Property for which an application or filing has been made or is pending in the
United States, held by the Borrower and any of its Subsidiaries.

 

5.20.        Solvency.  The
Loan Parties are, on a consolidated basis, and after giving effect to the
incurrence of all Indebtedness and obligations being incurred in connection
herewith will be and will continue to be, Solvent.

 

55

 

5.21.        Designated Senior Debt. 
The Obligations of the Loan Parties hereunder and under the other Loan
Documents constitutes “Designated Senior Indebtedness” for purposes of the
Senior Subordinated Notes, and following the consummation of the Refinancing,
no other Indebtedness shall constitute “Designated Senior Indebtedness”
thereunder.

 

5.22.        Regulation H.  No
Mortgage encumbers improved real property that is located in an area that has
been identified by the Secretary of Housing and Urban Development as an area
having special flood hazards and in which flood insurance has been made
available under the National Flood Insurance Act of 1968 (except any
Mortgaged Properties as to which such flood insurance as required by Regulation
H has been obtained and is in full force and effect as required by this
Agreement).

 

SECTION 6.  CONDITIONS PRECEDENT

 

6.1.          Conditions to Restatement Date.  The agreement of each Term Lender to make the
initial extension of credit requested to be made by it is subject to the
satisfaction or waiver, prior to or concurrently with the making of such
extension of credit on the Restatement Date, of the following conditions
precedent:

 

(a)   Loan Documents.  All legal matters incident to this Agreement
and the other Loan Documents shall be satisfactory to the Term Lenders, to the
Issuing Bank and to the Administrative Agent, and the Administrative Agent
shall have received (i) this Agreement, or, in the case of the Term
Lenders, an Addendum, executed and delivered by each Agent, Holdings, the
Borrower and each Person that is a Lender on the Restatement Date and (ii) an
executed counterpart of each other Loan Document required to be executed and
delivered on the Restatement Date.

 

In the event that any one or more Persons
have not executed and delivered an Addendum on the date scheduled to be the
Restatement Date (each such Person being referred to herein as a “Non-Executing
Person”), the condition referred to in clause (i) above shall nevertheless
be deemed satisfied if on such date the Borrower and the Administrative Agent
shall have designated one or more Persons (the “Designated Lenders”) to
assume, in the aggregate, all of the Commitments that would have been held by
the “Non-Executing Persons” (subject to each such Designated Lender’s
consent and its execution and delivery of an Addendum).

 

(b)   Concurrent Transactions.  The Borrower shall have delivered notice to
the Administrative Agent in accordance with the terms of Section 4.1 of the
Original Credit Agreement stating (i) the Borrower’s intent to prepay in full
the Existing Term Loans outstanding under the Original Credit Agreement, and
(ii) that the Restatement Date shall be the effective date of such prepayment.

 

(c)   Pro Forma Balance Sheet; Financial
Statements.  The Lenders shall have
received (i) the Pro Forma Balance Sheet, (ii) audited consolidated
financial statements of Holdings for the 2005, 2004 and 2003 fiscal years and
(iii) unaudited interim consolidated financial statements of Holdings for each
quarterly period ended subsequent to the date of the latest applicable
financial statements delivered pursuant to clause (ii) of this paragraph as to

 

56

 

which such financial statements
are available, and such financial statements shall not reflect any material
adverse change in the consolidated financial condition of Holdings since
December 31, 2005.

 

(d)   Approvals.  All governmental and material third party
approvals necessary, or in the discretion of the Administrative Agent,
advisable in connection with the Refinancing, the continuing operations of the
Group Members and the transactions contemplated hereby, and the consent of each
landlord of the leased Mortgaged Properties listed on Schedule 1.1(c), shall
have been obtained and be in full force and effect, and all applicable waiting
periods shall have expired without any action being taken or threatened by any
competent authority that would restrain, prevent or otherwise impose adverse
conditions on the Refinancing or the financing contemplated hereby.

 

(e)   Lien Searches.  The Administrative Agent shall have received
the results of a recent lien search in each of the jurisdictions where the
Group Members are organized and where assets of the Loan Parties are located,
and such search shall reveal no liens on any of the assets of the Loan Parties
except for Liens permitted by Section 8.3 or discharged on or prior to the
Restatement Date pursuant to documentation reasonably satisfactory to the
Administrative Agent.

 

(f)    Fees. 
The Lenders and the Agents shall have received all fees required to be
paid, and all expenses for which invoices have been presented (including the
reasonable fees and expenses of legal counsel), on or before the Restatement
Date.  All such amounts will be paid with
proceeds of Loans made on the Restatement Date and will be reflected in the
funding instructions given by the Borrower to the Administrative Agent on or
before the Restatement Date.

 

(g)   Restatement Date Certificate.  The Administrative Agent shall have received
a certificate of each Loan Party, dated the Restatement Date, substantially in
the form of Exhibit B, with appropriate insertions and attachments including
the certificate of incorporation of each Loan Party that is a corporation
certified by the relevant authority of the jurisdiction of organization of such
Loan Party and a long form good standing certificate for each Loan Party from
its jurisdiction of organization; provided that in lieu of delivering
certificates of incorporation for each Loan Party, Borrower may deliver a
certificate of a duly authorized officer certifying that there have been no
material amendments to those certificates of incorporation previously delivered
to BSCL, as the Administrative Agent, in connection with Original Credit
Agreement.

 

(h)   Legal Opinions.  The Lead Arranger shall have received the
following executed legal opinions:

 

(i)            the
legal opinion of Kirkland & Ellis LLP, counsel to the Borrower and its
Subsidiaries, substantially in the form of Exhibit E; and

 

(ii)           the
legal opinion of local counsel in each of Kansas, Florida and Maine.

 

57

 

Each such
legal opinion shall cover such other matters incident to the transactions
contemplated by this Agreement as the Administrative Agent may reasonably
require.

 

(i)    Pledged Stock; Stock Powers; Pledged
Notes.  The Administrative Agent
shall have received (i) the certificates representing the shares of Capital
Stock pledged pursuant to the Guarantee and Collateral Agreement, together with
an undated stock power for each such certificate executed in blank by a duly
authorized officer of the pledgor thereof and (ii) each promissory note (if
any) pledged to the Administrative Agent pursuant to the Guarantee and
Collateral Agreement endorsed (without recourse) in blank (or accompanied by an
executed transfer form in blank) by the pledgor thereof.

 

(j)    Filings, Registrations and Recordings.  Each document (including any Uniform
Commercial Code financing statement) required by the Security Documents or
under law or reasonably requested by the Administrative Agent to be filed,
registered or recorded in order to create in favor of the Administrative Agent,
for the benefit of the Lenders, a perfected Lien on the Collateral described
therein, prior and superior in right to any other Person (other than with
respect to Liens expressly permitted by Section 8.3), shall be in proper form
for filing, registration or recordation.

 

(k)   Mortgages, etc.

 

(i)              The Administrative Agent shall have received
modifications (the “Modifications”) to all Mortgages (as defined in the
Original Credit Agreement) with respect to each Mortgaged Property, executed
and delivered by a duly authorized officer of each party thereto in recordable
form in the applicable state in which such Mortgaged Property is located.

 

(ii)           If requested
by the Administrative Agent, the Administrative Agent shall have received, and
the title insurance company issuing the policy referred to in clause (iii)
below (the “Title Insurance Company”) shall have received, maps or plats
of an as-built survey of the sites of the owned Mortgaged Properties (it being
understood that no surveys shall be required for any of the leased Mortgaged
Properties) certified to the Administrative Agent and the Title Insurance
Company in a manner reasonably satisfactory to them, dated a date reasonably
satisfactory to the Administrative Agent and the Title Insurance Company by an
independent professional licensed land surveyor reasonably satisfactory to the
Administrative Agent and the Title Insurance Company, which maps or plats and
the surveys on which they are based shall be made in accordance with the
Minimum Standard Detail Requirements for Land Title Surveys jointly established
and adopted by the American Land Title Association and the American Congress on
Surveying and Mapping in 1992, and, without limiting the generality of the
foregoing, there shall be surveyed and shown on such maps, plats or surveys the
following: (A) the locations on such sites of all the buildings, structures and
other improvements and the established building setback lines; (B) all
exceptions set forth on Schedule B of the title insurance policies delivered in
clause (iii) below; (C) the lines of streets abutting the sites and width
thereof; (D) all access and other easements appurtenant to the sites; (E) all
roadways, paths, driveways, easements, encroachments

 

58

 

and overhanging projections and similar encumbrances affecting the
site, whether recorded, apparent from a physical inspection of the sites or
otherwise known to the surveyor; (F) any encroachments on any adjoining
property by the building structures and improvements on the sites; (G) if the
site is described as being on a filed map, a legend relating the survey to said
map; and (H) the flood zone designations, if any, in which the Mortgaged
Properties are located.

 

(iii)          The
Administrative Agent shall have received in respect of each owned Mortgaged
Property (it being understood that no endorsements to mortgagee title insurance
policies shall be required for any of the leased Mortgaged Properties)
endorsements to mortgagee title insurance policies or marked up unconditional
commitment or proforma for such insurance delivered in connection with the
Original Credit Agreement.  Each such
endorsement shall (A) be in an amount reasonably satisfactory to the
Administrative Agent; (B) be issued at ordinary rates; (C) insure that the
Mortgage insured thereby creates a valid first Lien on such Mortgaged Property
free and clear of all defects and encumbrances, except as disclosed therein and
as reasonably acceptable to the Administrative Agent; (D) name the
Administrative Agent for the benefit of the Lenders as the insured thereunder;
(E) be in the form of ALTA Loan Policy - 1970 (Amended 10/17/70 and 10/17/84)
(or equivalent policies); (F) contain such endorsements and affirmative
coverage as the Administrative Agent may reasonably request and (G) be issued
by title companies reasonably satisfactory to the Administrative Agent (including
any such title companies acting as co-insurers or reinsurers, at the option of
the Administrative Agent).  The
Administrative Agent shall have received evidence reasonably satisfactory to it
that all premiums in respect of each such endorsement to any such policy, all
charges for Modification recording tax, and all related expenses, if any, have
been paid.

 

(iv)          The
Administrative Agent shall have received (A) a policy of flood insurance that
(1) covers any parcel of improved owned real property located in a federally
recognized flood zone that is encumbered by any Mortgage, (2) is written in an
amount not less than the outstanding principal amount of the indebtedness
secured by such Mortgage that is reasonably allocable to such owned real
property or the maximum limit of coverage made available with respect to the
particular type of property under the National Flood Insurance Act
of 1968, whichever is less, and (3) has a term ending not later than the
maturity of the Indebtedness secured by such Mortgage and (B) confirmation that
the Borrower has received the notice required pursuant to Section 208(e)(3) of
Regulation H of the Board.

 

(v)           The
Administrative Agent shall have received a copy of all recorded documents
referred to, or listed as exceptions to title in, the title policy or policies
referred to in clause (iii) above and a copy of all other material documents
affecting the Mortgaged Properties.

 

(l)      Solvency Certificate.  The Lead Arranger shall have received and
shall be reasonably satisfied with a solvency certificate of the chief
financial officer of the Borrower

 

59

 

substantially in the form of
Exhibit K, which shall document the solvency of the Loan Parties after giving
effect to the Refinancing and other transactions contemplated hereby.

 

(m)  Insurance.  The Administrative Agent shall have received
insurance certificates satisfying the requirements of Section 5.3 of the
Guarantee and Collateral Agreement.

 

(n)   Environmental.  The Administrative Agent and each Lender
shall have received a Certificate and Release for Environmental Conditions
issued to the Borrower by the City of Wichita, Kansas with respect to the
Borrower’s property located at 120 E. First Street, Wichita, Kansas.

 

(o)   Senior Debt.  An officer of the Borrower shall certify in
writing to the Administrative Agent that the incurrence of Indebtedness on the
Restatement Date and at any time thereafter under this Agreement is permitted
under the indenture governing the Senior Subordinated Notes and that the debt
so incurred will constitute Senior Debt and Designated Senior Debt under and as
defined in such indenture.

 

(p)   Non-Continuing Lenders.  The Administrative Agent shall have received
written verification acceptable to it that the Lenders under the Original
Credit Agreement that are not Continuing Lenders have been, or will be, paid in
full all amounts required to be paid to them by Borrower pursuant to Section
4.2(g).

 

(q)   Miscellaneous.  The Administrative Agent shall have received
such other documents, agreements, certificates and information as it shall
reasonably request.

 

6.2.          Conditions to Each Extension of Credit.  The agreement of each Lender to make any
extension of credit requested to be made by it on any date (including its
initial extension of credit) is subject to the satisfaction of the following
conditions precedent:

 

(a)   No Default.  No Default or Event of Default shall have
occurred and be continuing (both prior to, and after giving effect to such
extension of credit).

 

(b)     Representations and Warranties.  Each of the representations and warranties
made by any Loan Party in or pursuant to the Loan Documents shall be true and
correct in all material respects on and as of such date as if made on and as of
such date, and after giving effect to the extensions of credit requested to be
made on such date, except for representations and warranties which specifically
relate to an earlier specific date, in which case such representations and
warranties shall be true and correct in all material respects as of such
earlier date.

 

(c)  No Change.  Since December 31, 2004, there has been no
development, event or circumstance that, individually or in the aggregate, has
had or could reasonably be expected to have a Material Adverse Effect.

 

60

 

Each borrowing
by and issuance of a Letter of Credit on behalf of the Borrower hereunder shall
constitute a representation and warranty by the Borrower as of the date of such
extension of credit that the conditions contained in this Section 6.2 have been
satisfied.

 

SECTION 7.  AFFIRMATIVE COVENANTS

 

Holdings and the Borrower hereby jointly and
severally agree that, so long as the Commitments remain in effect, any Letter
of Credit remains outstanding (unless cash collateralized) or any Loan or other
amount (excluding contingent indemnification obligations for which no claims
have been made or obligations with respect to Hedge Agreements) is owing to any
Lender or Agent hereunder, each of Holdings and the Borrower shall and shall
cause each of its Subsidiaries to:

 

7.1.          Financial Statements. 
Furnish to the Administrative Agent:

 

(a)   as soon as available, but in any event within
90 days after the end of each fiscal year of Holdings a copy of the
audited consolidated balance sheet of Holdings and its consolidated
Subsidiaries as at the end of such year and the related audited consolidated
statements of income and of cash flows for such year, setting forth in each
case in comparative form the figures for the previous year, reported on without
a “going concern” or like qualification or exception, or qualification arising
out of the scope of the audit, by Deloitte and Touche LLP or other independent
certified public accountants of nationally recognized standing;

 

(b)   as soon as available, but in any event not
later than 45 days after the end of each of the first three quarterly periods
of each fiscal year of Holdings, the unaudited consolidated balance sheet of
Holdings and its consolidated Subsidiaries as at the end of such quarter and
the related unaudited consolidated statements of income and of cash flows for
such quarter and the portion of the fiscal year through the end of such
quarter, setting forth in each case in comparative form the figures for the
previous year, certified by a Responsible Officer as being fairly stated in all
material respects (subject to normal year-end audit adjustments and the absence
of footnotes); and

 

(c)   as soon as available, but in any event not
later than 30 days after the end of each month occurring during each fiscal
year of Holdings, calculations showing the consolidated financial status of
Holdings and its consolidated Subsidiaries, substantially in the form of
Exhibit L, as at the end of such month and the portion of the fiscal year
through the end of such month.

 

All such
financial statements shall be complete and correct in all material respects and
shall be prepared in reasonable detail and in accordance with GAAP applied
consistently throughout the periods reflected therein and with prior periods
(except as approved by such accountants or officer, as the case may be, and
disclosed therein, and except for such non-GAAP measurements as are required in
Exhibit L).

 

7.2.          Certificates; Other Information.  Furnish to the Administrative Agent and each
Lender (or, in the case of clause (f), to the relevant Lender):

 

61

 

(a)   concurrently with the delivery of the
financial statements referred to in Section 7.1(a), a certificate of the
independent certified public accountants reporting on such financial statements
stating that in making the examination necessary therefor no knowledge was
obtained of any Default or Event of Default, except as specified in such
certificate;

 

(b)   concurrently with the delivery of any
financial statements pursuant to Section 7.1(a) or (b), (i) a certificate of a
Responsible Officer stating that such Responsible Officer has obtained no
knowledge of any Default or Event of Default except as specified in such
certificate and (ii) (x) a Compliance Certificate containing all information
and calculations necessary for determining compliance by each Group Member with
the provisions of Sections 8.1 and 8.7 of this Agreement referred to therein as
of the last day of the fiscal quarter or fiscal year of the Borrower, as the
case may be, and, if applicable, for determining the Applicable Margins, and
(y) to the extent not previously disclosed to the Administrative Agent, a
listing of any federally registered or recorded Intellectual Property,
including Intellectual Property for which an application or filing has been
made or is pending in the United States, acquired by any Loan Party since the
date of the most recent list delivered pursuant to this clause (y) (or, in the
case of the first such list so delivered, since the Closing Date);

 

(c)   as soon as available, and in any event no
later than 45 days after the end of each fiscal year of the Borrower, a
detailed consolidated budget for the following fiscal year (including a
projected consolidated balance sheet of Holdings and its Subsidiaries as of the
end of the following fiscal year, the related consolidated statements of
projected cash flow, projected income and a description of the underlying
assumptions applicable thereto, collectively, the “Projections”), which
Projections shall in each case be accompanied by a certificate of a Responsible
Officer stating that such Projections are based on reasonable estimates,
information and assumptions believed by the Borrower to have been reasonable
when made, it being recognized that such Projections are not to be viewed as
fact and that actual results during the periods covered by such Projections may
differ from the projected results set forth therein by a material amount;

 

(d)   if the Borrower or Holdings is not then a
reporting company under the Securities Exchange Act of 1934, as amended, within
90 days after the end of each fiscal year of the Borrower and within 45 days
after the end of each of the first three fiscal quarters of the Borrower, a
narrative discussion and analysis of the financial condition and results of
operations of the Borrower and its Subsidiaries for such fiscal quarter and for
the period from the beginning of the then current fiscal year to the end of
such fiscal quarter, as compared to the portion of the Projections covering
such periods and to the comparable periods of the previous year;

 

(e)   within five Business Days after the same are
sent, copies of all financial statements and reports that Holdings or the
Borrower sends to the holders of any class of its debt securities or public
equity securities generally and, within five Business Days after the same are
filed, copies of all financial statements and reports that Holdings or the
Borrower may make to, or file with, the SEC; and

 

(f)    promptly, such additional financial and
other information as any Lender may from time to time reasonably request.

 

62

 

7.3.          Payment of Obligations.  Except as could not, individually or in the
aggregate, reasonably be expected to cause a Material Adverse Effect, pay,
discharge or otherwise satisfy at or before maturity or before they become
delinquent, as the case may be, all its contractual obligations of whatever nature,
except where the amount or validity thereof is currently being contested in
good faith by appropriate proceedings and reserves in conformity with GAAP with
respect thereto have been provided on the books of the relevant Group Member.

 

7.4.          Maintenance of Existence; Compliance.  (a) 
(i)  Preserve, renew and keep in
full force and effect its organizational existence and (ii) take all reasonable
action to maintain all rights, privileges and franchises necessary or desirable
in the normal conduct of its business, except, in each case, as otherwise
permitted by Section 8.4 and except, in the case of clause (ii) above, to the
extent that failure to do so could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect; and (b) comply with
all Contractual Obligations and Requirements of Law except to the extent that
failure to comply therewith could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

 

7.5.          Maintenance of Property; Insurance                .  (a) 
Keep all property necessary in its business in good working order and
condition, ordinary wear and tear and casualty excepted and (b) maintain
with reputable insurance companies insurance on all its property in at least
such amounts and against at least such risks (but including in any event public
liability, product liability and business interruption) as are usually insured
against in the same general area by similarly situated companies engaged in the
same or a similar business with respect to similar property.

 

7.6.          Inspection of Property; Books and Records; Discussions.  (a) 
Keep proper books of records and account in which entries that are full,
true and correct in all material respects in conformity with GAAP and all
Requirements of Law shall be made of all dealings and transactions in relation
to its business and activities and (b) at least once every fiscal year of the
Borrower or at any time while an Event of Default shall have occurred and be
continuing, permit representatives of any Lender (coordinated through the
Administrative Agent) to visit and inspect any of its properties and examine
and make abstracts from any of its books and records during regular business
hours and to discuss the business, operations, properties and financial and
other condition of the Group Members with officers and employees of the Group
Members and with their independent certified public accountants; provided
that relevant officers and employees of the Group Members shall have the right
to be present during such discussions. 
Nothing in this Section 7.6 shall be construed to cause the Borrower to
divulge any materials covered by an attorney-client privilege that has not been
waived.

 

7.7.          Notices. 
Promptly give notice to the Administrative Agent and each Lender of:

 

(a)   the occurrence of any Default or Event of
Default hereunder
or any default or event of default under the Senior Subordinated Notes;

 

63

 

(b)   any (i) default or event of default under any
Contractual Obligation of any Group Member or any lease encumbered by a
Mortgage or (ii) litigation, investigation or proceeding that may exist at any
time between any Group Member and any Governmental Authority, that in either
case, if not cured or if adversely determined, as the case may be, could,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect;

 

(c)   any litigation or proceeding affecting any
Group Member (i) in which the amount involved is $ 5,000,000 or more (excluding
amounts covered by insurance), (ii) in which injunctive or similar relief is
sought with respect to material operations or (iii) which relates to any Loan
Document;

 

(d)   the following events, as soon as possible and
in any event within 30 days after any Loan Party knows or has reason to know
thereof:  (i) the occurrence of any
Reportable Event with respect to any Multiemployer Plan, a failure to make any
required contribution to a Multiemployer Plan, the creation of any Lien in
favor of the PBGC or a Plan or any withdrawal from, or the termination,
Reorganization or Insolvency of, any Multiemployer Plan or (ii) the institution
of proceedings or the taking of any other action by the PBGC or the Borrower or
any Commonly Controlled Entity or any Multiemployer Plan with respect to the
withdrawal from, or the termination, Reorganization or Insolvency of, any
Multiemployer Plan; and

 

(e)   any development or event that, individually
or in the aggregate, has had or could reasonably be expected to have a Material
Adverse Effect.

 

Each notice
pursuant to this Section 7.7 shall be accompanied by a statement of a
Responsible Officer setting forth details of the occurrence referred to therein
and stating what action Holdings, the Borrower or the relevant Subsidiary
proposes to take with respect thereto.

 

7.8.          Environmental Laws. Except as the failure to do so
could not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect:

 

(a)  Comply in all material respects with, and
ensure compliance in all material respects by all tenants and subtenants, if
any, with, all applicable Environmental Laws, and obtain and comply in all
material respects with and maintain, and ensure that all tenants and subtenants
obtain and comply in all material respects with and maintain, any and all
licenses, approvals, notifications, registrations or permits required by
applicable Environmental Laws.

 

(b)  Conduct and complete all investigations,
studies, sampling and testing, and all remedial, removal and other actions
required under Environmental Laws and promptly comply in all material respects
with all lawful orders and directives of all Governmental Authorities regarding
Environmental Laws.

 

7.9.          Interest Rate Protection.  In the case of the Borrower, maintain, Hedge
Agreements to the extent necessary to provide that at least $70,000,000 in
aggregate principal amount of the Term Loans are subject to either a fixed
interest rate or interest rate protection for a period of not less than two years
after the Closing Date, which Hedge Agreements shall have terms and conditions
reasonably satisfactory to the Administrative Agent.

 

64

 

7.10.        Additional Collateral, etc.  With respect to any property acquired after
the Closing Date by any Group Member (other than (w) any property described in
paragraph (b), (c) or (d) below, (x) any property subject to a Lien expressly
permitted by Section 8.3(f), (y) property acquired by any Foreign Subsidiary
and (z) any property of the type not required to be pledged pursuant to the
Security Documents) as to which the Administrative Agent, for the benefit of
the Secured Parties, does not have a perfected Lien, promptly (i) execute and
deliver to the Administrative Agent such amendments to the Guarantee and
Collateral Agreement or such other documents as the Administrative Agent
reasonably deems necessary or advisable to grant to the Administrative Agent,
for the benefit of the Secured Parties, a security interest in such property
and (ii) take all actions necessary or advisable to grant to the Administrative
Agent, for the benefit of the Secured Parties, a perfected first priority
security interest in such property (subject to Liens permitted under Section
8.3), including the filing of Uniform Commercial Code financing statements in
such jurisdictions as may be required by the Guarantee and Collateral Agreement
or by law or as may be requested by the Administrative Agent.

 

(b)   With respect to any fee interest in any real
property having a value (together with improvements thereof) of at least
$2,000,000 acquired after the Closing Date by any Group Member (other than (x)
any such real property subject to a Lien expressly permitted by Section 8.3(f)
and (y) real property acquired by any Foreign Subsidiary), promptly (i) execute
and deliver a first priority Mortgage, in favor of the Administrative Agent,
for the benefit of the Secured Parties, covering such real property, (ii) if
requested by the Administrative Agent, provide the Secured Parties with (x)
title and extended coverage insurance covering such real property in an amount
at least equal to the purchase price of such real property (or such other
amount as shall be reasonably specified by the Administrative Agent) as well as
a current ALTA survey thereof, together with a surveyor’s certificate, all in
accordance with the requirements set forth in Section 6.1(k) and (y) any
consents or estoppels reasonably deemed necessary or advisable by the
Administrative Agent in connection with such Mortgage, each of the foregoing in
form and substance reasonably satisfactory to the Administrative Agent and
(iii) if requested by the Administrative Agent, deliver to the Administrative
Agent legal opinions relating to the matters described above, which opinions
shall be in form and substance, and from counsel, reasonably satisfactory to
the Administrative Agent. 
Notwithstanding the foregoing, no Loan Party shall be deemed in
violation of this Section 7.10(b) for failure to deliver documentation required
under clause (2) above if the Borrower has used all commercially reasonable
efforts to do so.

 

(c)   With respect to any new Subsidiary (other
than a Foreign Subsidiary) created or acquired after the Closing Date by any
Group Member, promptly (i) execute and deliver to the Administrative Agent such
amendments to the Guarantee and Collateral Agreement as the Administrative
Agent reasonably deems necessary or advisable to grant to the Administrative
Agent, for the benefit of the Secured Parties, a perfected first priority
security interest in the Capital Stock of such new Subsidiary that is owned by
any Group Member, (ii) deliver to the Administrative Agent the certificates
representing such Capital Stock, together with undated stock (or other transfer)
powers, in blank, executed and delivered by a duly authorized officer of the
relevant Group Member and (iii) cause such new Subsidiary (A) to become a
party to the Guarantee and Collateral Agreement, (B) to take such actions
necessary or advisable to grant to the Administrative Agent for the benefit of
the Secured Parties a perfected first priority security

 

65

 

interest, subject to, in the
case of Capital Stock, Liens arising as a matter of law that do not detract
from the value thereof in any material respect, and (other than as to the
Capital Stock of or held by such new Subsidiary) Liens permitted by Section
8.3, in the Collateral described in the Guarantee and Collateral Agreement with
respect to such new Subsidiary, including the filing of Uniform Commercial Code
financing statements in such jurisdictions as may be required by the Guarantee
and Collateral Agreement or by law or as may be requested by the Administrative
Agent and (C) to deliver to the Administrative Agent a certificate of such
Subsidiary, substantially in the form of Exhibit B, with appropriate insertions
and attachments, and (iv) if reasonably requested by the Administrative Agent,
deliver to the Administrative Agent legal opinions relating to the matters
described above, which opinions shall be in form and substance, and from
counsel, reasonably satisfactory to the Administrative Agent.

 

(d)   With respect to any new Foreign Subsidiary
created or acquired after the Closing Date by any Group Member (other than by
any Group Member that is a Foreign Subsidiary), promptly (i) execute and
deliver to the Administrative Agent such amendments to the Guarantee and
Collateral Agreement as the Administrative Agent deems necessary or advisable to
grant to the Administrative Agent, for the benefit of the Secured Parties, a
perfected first priority security interest in the Capital Stock of such new
Subsidiary that is owned by any such Group Member (provided that in no event
shall more than 65% of the total outstanding voting Capital Stock and 100% of
the total outstanding non-voting Capital Stock of any such new Subsidiary be
required to be so pledged) and (ii) deliver to the Administrative Agent the
certificates representing such Capital Stock, together with undated stock
powers, in blank, executed and delivered by a duly authorized officer of the
relevant Group Member, as the case may be, and take such other action as may be
necessary or, in the opinion of the Administrative Agent, desirable to perfect
the Administrative Agent’s security interest therein, and (iii) if reasonably
requested by the Administrative Agent, deliver to the Administrative Agent
legal opinions relating to the matters described above, which opinions shall be
in form and substance, and from counsel, reasonably satisfactory to the
Administrative Agent.

 

(e)   With respect to the Borrower’s operations
currently conducted at the leased premises located at 4221 W. John Carpenter,
Irving, TX 75063, the Borrower shall (i) within sixty (60) days after the
Closing Date, use commercially reasonable efforts to provide the Administrative
Agent with the necessary landlord consent to the Borrower’s granting of a
leasehold Mortgage encumbering such leased premises, in form and substance
reasonably satisfactory to the Administrative Agent and (ii) if such landlord
consent is obtained, within twenty (20) days after receipt of such landlord
consent, (y) execute and deliver a first priority leasehold Mortgage, in favor
of the Administrative Agent, for the benefit of the Secured Parties,
encumbering such leased premises and (z) deliver to the Administrative Agent a
legal opinion relating to the matters described above, including, without
limitation, the enforceability of such leasehold Mortgage, which opinion shall
be in form and substance, and from counsel, reasonably satisfactory to the
Administrative Agent..

 

7.11.        Further Assurances. 
From time to time execute and deliver, or cause to be executed and
delivered, such additional instruments, certificates or documents, and take all
such actions, as the Administrative Agent may reasonably request for the
purposes of implementing or effectuating the provisions of this Agreement and
the other Loan Documents, or of more fully

 

66

 

perfecting or renewing the rights of the Administrative Agent and the
Secured Parties with respect to the Collateral (or with respect to any
additions thereto or replacements or proceeds thereof or with respect to any
other property or assets hereafter acquired by the Borrower or any Subsidiary
which may be deemed to be part of the Collateral) pursuant hereto or
thereto.  Upon the exercise by the
Administrative Agent or any Secured Party of any power, right, privilege or
remedy pursuant to this Agreement or the other Loan Documents which requires
any consent, approval, recording qualification or authorization of any
Governmental Authority, the Borrower will execute and deliver, or will cause
the execution and delivery of, all applications, certifications, instruments
and other documents and papers that the Administrative Agent or such Secured
Parties may be required to obtain from the Borrower or any of its Subsidiaries
for such governmental consent, approval, recording, qualification or
authorization.

 

SECTION 8.  NEGATIVE COVENANTS

 

Holdings and the Borrower hereby jointly and
severally agree that, so long as the Commitments remain in effect, any Letter
of Credit remains outstanding (unless cash collateralized) or any Loan or other
amount is owing (excluding contingent indemnification obligations for which no
claim has been made or obligations with respect to Hedge Agreements) to any
Lender or Agent hereunder, each of Holdings and the Borrower shall not, and
shall not permit any of its Subsidiaries to, directly or indirectly:

 

8.1.          Financial Condition Covenants

 

(a)   Consolidated Leverage Ratio.  Permit the Consolidated Leverage Ratio as at
the last day of any period of four consecutive fiscal quarters of Holdings
ending with any fiscal quarter set forth below to exceed the ratio set forth
below opposite such fiscal quarter:

 

67

 

	
  Fiscal
  Quarter

  	
   

  	
  Consolidated

  Leverage Ratio

  
	
  Q2 2006

  	
   

  	
  5.75x

  
	
  Q3 2006

  	
   

  	
  5.75x

  
	
  Q4 2006

  	
   

  	
  5.75x

  
	
  Q1 2007

  	
   

  	
  5.75x

  
	
  Q2 2007

  	
   

  	
  5.75x

  
	
  Q3 2007

  	
   

  	
  5.75x

  
	
  Q4 2007

  	
   

  	
  5.75x

  
	
  Q1 2008

  	
   

  	
  5.75x

  
	
  Q2 2008

  	
   

  	
  5.75x

  
	
  Q3 2008

  	
   

  	
  5.75x

  
	
  Q4 2008

  	
   

  	
  5.75x

  
	
  Q1 2009

  	
   

  	
  5.50x

  
	
  Q2 2009

  	
   

  	
  5.50x

  
	
  Q3 2009

  	
   

  	
  5.50x

  
	
  Q4 2009

  	
   

  	
  5.50x

  
	
  Q1 2010

  	
   

  	
  5.25x

  
	
  Q2 2010

  	
   

  	
  5.25x

  
	
  Q3 2010

  	
   

  	
  5.25x

  
	
  Q4 2010

  	
   

  	
  5.25x

  
	
  Q1 2011

  	
   

  	
  5.00x

  
	
  Q2 2011

  	
   

  	
  5.00x

  
	
  Q3 2011

  	
   

  	
  5.00x

  
	
  Q4 2011

  	
   

  	
  5.00x

  
	
  Q1 2012 and thereafter

  	
   

  	
  4.75x

  

 

(b)   Consolidated Interest Coverage Ratio.  Permit the Consolidated Interest Coverage
Ratio for any period of four consecutive fiscal quarters of Holdings ending
with any fiscal quarter set forth below to be less than the ratio set forth
below opposite such fiscal quarter:

 

68

 

	
  Fiscal
  Quarter

  	
   

  	
  Consolidated Interest

  Leverage Ratio

  
	
  Q2 2006

  	
   

  	
  2.00x

  
	
  Q3 2006

  	
   

  	
  2.00x

  
	
  Q4 2006

  	
   

  	
  2.00x

  
	
  Q1 2007

  	
   

  	
  2.00x

  
	
  Q2 2007

  	
   

  	
  2.00x

  
	
  Q3 2007

  	
   

  	
  2.00x

  
	
  Q4 2007

  	
   

  	
  2.00x

  
	
  Q1 2008

  	
   

  	
  2.00x

  
	
  Q2 2008

  	
   

  	
  2.00x

  
	
  Q3 2008

  	
   

  	
  2.00x

  
	
  Q4 2008

  	
   

  	
  2.00x

  
	
  Q1 2009

  	
   

  	
  2.00x

  
	
  Q2 2009

  	
   

  	
  2.00x

  
	
  Q3 2009

  	
   

  	
  2.00x

  
	
  Q4 2009

  	
   

  	
  2.00x

  
	
  Q1 2010

  	
   

  	
  2.05x

  
	
  Q2 2010

  	
   

  	
  2.05x

  
	
  Q3 2010

  	
   

  	
  2.05x

  
	
  Q4 2010

  	
   

  	
  2.05x

  
	
  Q1 2011

  	
   

  	
  2.15x

  
	
  Q2 2011

  	
   

  	
  2.15x

  
	
  Q3 2011

  	
   

  	
  2.15x

  
	
  Q4 2011

  	
   

  	
  2.15x

  
	
  Q1 2012 and thereafter

  	
   

  	
  2.25x

  

 

8.2.          Indebtedness. 
Create, issue, incur, assume, become liable in respect of or suffer to
exist any Indebtedness, except:

 

(a)   Indebtedness of any Loan Party pursuant to
any Loan Document;

 

(b)   Indebtedness (i) of the Borrower to any
Subsidiary, (ii) of any Wholly Owned Subsidiary Guarantor to the Borrower or
any other Subsidiary, (iii) of any Foreign Subsidiary to any Foreign Subsidiary
and (iv) subject to Section 8.8(p), of any Foreign Subsidiary to the Borrower
or any Subsidiary Guarantor; provided that such Indebtedness shall be
evidenced by a Subordinated Intercompany Note, which Subordinated Intercompany
Note shall (to the extent representing Obligations of a Loan Party) be pledged
to the Administrative Agent;

 

(c)   Guarantee Obligations incurred in the
ordinary course of business by the Borrower or any of its Subsidiaries of
obligations of the Borrower, any Subsidiary Guarantor and, subject to Section
8.8(p), of any Foreign Subsidiary;

 

(d)   the Senior Subordinated Notes outstanding on
the Restatement Date and any Permitted Refinancing thereof;

 

69

 

(e)   Indebtedness (including Capital Lease
Obligations) secured by Liens permitted by Section 8.3(f) in an aggregate
principal amount not to exceed $ 10,000,000 at any one time outstanding;

 

(f)    Hedge Agreements permitted under Section
8.12;

 

(g)   to the extent the Loan Parties demonstrate
pro forma covenant compliance after giving effect to the incurrence thereof,
Indebtedness of any Subsidiary of the Borrower that was not a Subsidiary on the
Closing Date existing at the time such other Person became a Subsidiary of the
Borrower; provided such Indebtedness was not incurred in connection
with, or in contemplation of, such other Person becoming such a Subsidiary;

 

(h)   Indebtedness arising from agreements
providing for indemnification, adjustment of purchase price or similar
obligations, or from guarantees or letters of credit, securing the performance
of such Loan Party or any Subsidiary pursuant to such agreements, in connection
with Permitted Acquisitions or Dispositions permitted hereunder of any
business, assets or Subsidiary of such Loan Party or any of its Subsidiaries;

 

(i)    Indebtedness incurred in the ordinary course
of business in connection with the financing of insurance premiums;

 

(j)    Indebtedness in respect of netting services,
overdraft protections and otherwise in connection with deposit accounts;

 

(k)   Indebtedness of Foreign Subsidiaries not to
exceed a principal amount of $5,000,000 at any one time outstanding;

 

(l)    Indebtedness in respect of taxes,
assessments or governmental charges to the extent that payment thereof shall
not at the time be required to be made hereunder;

 

(m)   to the extent permitted by applicable law,
Indebtedness consisting of deferred purchase price or notes issued to officers,
directors, consultants and employees to purchase or redeem equity interests (or
option or warrants or similar instruments) of a Loan Party or its Subsidiaries;

 

(n)   to the extent constituting Indebtedness,
obligations under incentive, non-compete, consulting, deferred compensation or
other similar arrangements satisfactory to the Administrative Agent;

 

(o)   unsecured Indebtedness issued in connection
with Permitted Acquisitions or to Sponsor and/or its Control Investment
Affiliates, which Indebtedness (and any guarantees thereof) is subordinated to
the Loans (and the guarantees thereof pursuant to the Guarantee and Collateral
Agreement) and on terms reasonably acceptable to the Administrative Agent,
including but not limited to PIK treatment of any interest and the tenor of
such Indebtedness; and

 

(p)   other Indebtedness incurred in the ordinary
course of business in an aggregate principal amount which shall not exceed
$15,000,000 at any one time outstanding.

 

70

 

8.3.          Liens.  Create,
incur, assume or suffer to exist any Lien upon any of its property, whether now
owned or hereafter acquired, except for:

 

(a)   Liens for taxes not yet due and payable or
that are being contested diligently in good faith and by appropriate
proceedings, provided that adequate reserves with respect thereto are
maintained on the books of the Borrower or its Subsidiaries, as the case may
be, in conformity with GAAP;

 

(b)   carriers’, warehousemen’s, mechanics’,
materialmen’s, repairmen’s landlord’s or other like Liens arising in the
ordinary course of business that are not overdue for a period of more than 90
days or that are being contested diligently in good faith and by appropriate
proceedings;

 

(c)   pledges or deposits in connection with workers’
compensation, unemployment insurance and other social security legislation;

 

(d)   deposits to secure the performance of bids,
trade contracts (other than for borrowed money), leases, statutory obligations,
surety and appeal bonds, performance bonds and other obligations of a like
nature incurred in the ordinary course of business;

 

(e)   easements, rights-of-way, restrictions and
other similar encumbrances incurred in the ordinary course of business that, in
the aggregate, are not substantial in amount and that do not in any case
materially detract from the value of the property subject thereto or materially
interfere with the ordinary conduct of the business of the Borrower or any of
its Subsidiaries;

 

(f)    Liens securing Indebtedness of the Borrower
or any other Subsidiary incurred pursuant to Section 8.2(e) to finance the
acquisition of fixed or capital assets, provided that (i) such
Liens shall be created within 90 days after the acquisition of such fixed or
capital assets, and (ii) such Liens do not at any time encumber any property
other than the property financed by such Indebtedness;

 

(g)   Liens created pursuant to the Security
Documents;

 

(h)   judgment Liens securing judgments not
constituting an Event of Default under Section 9(h);

 

(i)    purported Liens evidenced by the filing of
precautionary UCC financing statements relating solely to operating leases of
personal property entered into in the ordinary course of business;

 

(j)    Liens securing Indebtedness in an amount of
not more than $5,000,000 in the aggregate at any time outstanding permitted by
Section 8.2(g); provided such Liens were not granted in connection with,
or in contemplation of, the obligor on such Indebtedness becoming such a
Subsidiary and do not exceed the value of the assets acquired when such obligor
became a Subsidiary;

 

71

 

(k)   any interest or title of a lessor, licensor
or sublicensor under any lease, license or sublicense entered into by the
Borrower or any other Subsidiary in the ordinary course of its business and
covering only the assets so leased;

 

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

 

(m)   Liens deemed to exist in connection with
permitted repurchase obligations or set-off rights;

 

(n)    replacement, extension or renewal of any
Lien permitted herein in the same property theretofore subject thereto; provided
the amount of Indebtedness secured thereby is not increased;

 

(o)   Liens securing reimbursement obligations in
respect of documentary letters of credit or bankers’ acceptances; provided that
such Liens attach only to the documents, the goods covered thereby and the
proceeds thereof;

 

(p)   rights of setoff or bankers’ Liens upon
deposits of cash in favor of banks or other depository institutions and Liens
associated with overdraft protection and netting services;

 

(q)   Liens in connection with the financing of
insurance premiums, provided such Liens shall not exceed the amount of such
premiums so financed;

 

(r)    Liens arising as a matter of law encumbering
customary initial deposits and margin deposits, and similar Liens and margin
deposits, and similar Liens attaching to commodity trading accounts or other brokerage
accounts incurred in the ordinary course of business;

 

(s)   Liens in favor of collecting banks arising
under Section 4-210 of the UCC;

 

(t)    Liens on the assets of Foreign Subsidiaries,
to the extent securing Indebtedness permitted hereunder;

 

(u)    other Liens not specifically listed above
securing Indebtedness not to exceed $5,000,000 outstanding at any one time in
the aggregate; and

 

(v)   Liens securing Permitted Refinancing debt
incurred pursuant to Section 8.2(d), which Liens shall be subordinate in all
respects to the Liens in favor of the Lenders granted pursuant to the Security
Documents and in accordance with the Intercreditor Agreement.

 

8.4.          Fundamental Changes. 
Enter into any merger, consolidation or amalgamation, or liquidate, wind
up or dissolve itself (or suffer any liquidation or dissolution), or Dispose of
all or substantially all of its property or business, except that:

 

(a)   any Subsidiary of the Borrower may be merged
or consolidated with or into the Borrower (provided that the Borrower
shall be the continuing or surviving corporation) or

 

72

 

with or into any Subsidiary
Guarantor (provided that the Subsidiary Guarantor shall be the
continuing or surviving corporation) or, subject to Section 8.8(p), with or
into any Foreign Subsidiary;

 

(b)   any Subsidiary of the Borrower may Dispose of
any or all of its assets (upon voluntary liquidation or otherwise) to the
Borrower or any Subsidiary Guarantor or, subject to Section 8.8(p), any Foreign
Subsidiary; and

 

(c) POI
Acquisition I, Inc. may be merged into Holdings; provided that Holdings
shall be the continuing or surviving corporation and shall take on no
additional liabilities or operations as a result of such merger.

 

8.5.          Disposition of Property.  Dispose of any of its property, whether now
owned or hereafter acquired, or, in the case of any Subsidiary, issue or sell
any shares of such Subsidiary’s Capital Stock to any Person, except:

 

(a)   the Disposition of obsolete or worn out
property in the ordinary course of business;

 

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

 

(c)   Dispositions permitted by Section 8.4(b);

 

(d)   the sale or issuance of any Subsidiary’s
Capital Stock to the Borrower or any Wholly Owned Subsidiary Guarantor;

 

(e)   Allotted Dispositions;

 

(f)    Dispositions of Property, in any transaction
or series of related transactions, that do not yield gross proceeds to any
Group Member (valued at the initial principal amount thereof in the case of
non-cash proceeds consisting of notes or other debt securities and valued at
fair market value in the case of other non-cash proceeds) in excess of
$500,000;

 

(g)   The granting of discounts or forgiveness of
account receivables in the ordinary course of business or in connection with
collection or compromise thereof;

 

(h)   any Loan Party and its Subsidiaries may sell
or otherwise dispose of cash and Cash Equivalents;

 

(i)    any Loan Party and its Subsidiaries may
sell, for fair market value, non-core assets acquired in connection with
permitted Investments;

 

(j)    any Loan Party and its Subsidiaries may
incur Liens permitted under Section 8.3; and

 

(k)   any Loan Party may sell or otherwise dispose
of Investments set forth on Schedule 8.8.

 

73

 

8.6.          Restricted Payments. 
Declare or pay any dividend (other than dividends payable solely in
common stock of the Person making such dividend) on, or make any payment on
account of, or set apart assets for a sinking or other analogous fund for, the
purchase, redemption, defeasance, retirement or other acquisition of, any
Capital Stock of any Group Member, whether now or hereafter outstanding, or
make any other distribution in respect thereof, either directly or indirectly,
whether in cash or property or in obligations of Holdings, the Borrower or any
Subsidiary (collectively, “Restricted Payments”), except that:

 

(a)   any Subsidiary may make Restricted Payments
to the Borrower or any Subsidiary Guarantor;

 

(b)   so long as no Default or Event of Default
shall have occurred and be continuing or would result therefrom, the Borrower
may pay dividends to Holdings to permit Holdings to (i) purchase Holdings’
common stock or common stock options from present or former officers,
directors, consultants or employees of any Group Member (or the respective
estates, spouses or family members) upon the death, disability or termination
of employment of such officer or employee to repay Indebtedness previously
issued to such Person, provided, that the aggregate amount of cash
payments under this clause (i) after the date hereof (net of any proceeds
received by Holdings and contributed to the Borrower after the date hereof in
connection with (a) resales of any common stock or common stock options so
purchased or (b) equity issuances by Holdings (to the extent not required to be
otherwise applied pursuant to Section 4.2(a)) shall not exceed $2,000,000 in
any calendar year or $5,000,000 in the aggregate and (ii) pay fees expressly
permitted by Section 8.10(e);

 

(c)   the Borrower may pay dividends to Holdings to
permit Holdings to (i) pay corporate overhead expenses incurred in the ordinary
course of business, (ii) pay any taxes that are due and payable by Holdings as
the parent of a consolidated or combined group that includes the Borrower, in
an amount not to exceed the lesser of (x) the relevant amount of any taxes
(including any penalties and interest) that the Borrower would owe if the
Borrower were filing a separate tax return (or a separate consolidated or
combined return with its Subsidiaries that are members of the consolidated or
combined group), taking into account any carryovers or carrybacks of tax
attributes (such as operating losses) of the Borrower and such Subsidiaries
from other taxable years and (y) the net amount of the relevant tax that
Holdings actually owes to the appropriate taxing authority; provided
that any such payment in respect of taxes received by Holdings shall be paid
over to the appropriate taxing authority within 30 days of Holdings’ receipt of
such payments or shall be refunded to the Borrower, (iii) pay expense
reimbursements pursuant to the Management Agreement substantially in the form
most recently delivered to the Administrative Agent prior to the Closing Date,
and without further modification thereto as to amounts payable thereunder, and
(iv) so long as no Default or Event of Default has occurred and is continuing,
pay amounts due and owing on preferred equity of Holdings issued to refinance
the Senior Subordinated Notes provided that the coupon on such preferred equity
shall be no higher than the rate of interest on the Senior Subordinated Notes;

 

(d)   the Borrower may pay cash dividends to
Holdings, which may in turn make equivalent cash dividends to its
equityholders, within thirty days of the Restatement Date in an amount not to
exceed $70,500,000 in the aggregate; and

 

74

 

(e)   the Borrower may pay special bonuses to
members of management not to exceed $4,500,000 in the aggregate with the proceeds
of the Term Loans as contemplated by Section 5.16.

 

8.7.          Capital Expenditures; Net Cash Investment Costs.  (a) Make any Capital Expenditure, except (i)
Capital Expenditures of the Borrower and its Subsidiaries not exceeding (A)
$12,500,000 for the 2006 fiscal year and (B) $10,000,000 for each fiscal year
thereafter; provided, that (A) up to 50% of any such amount referred to
above (but in no event more than $2,500,000 in any fiscal year), if not so
expended in the fiscal year for which it is permitted, may be carried over for
expenditure in the next succeeding fiscal year and (B) Capital Expenditures
made pursuant to this clause (i) during any fiscal year shall be deemed made, first, in respect of amounts carried over from the prior
fiscal year pursuant to subclause (A) above, and second,
to amounts permitted for such fiscal year as provided above, (ii) Capital
Expenditures made with the proceeds of any Reinvestment Deferred Amount, (iii)
Capital Expenditures made as a tenant in leasehold improvements to the extent
reimbursable by landlord pursuant to evidence satisfactory to the
Administrative Agent, (iv) Capital Expenditures that are Permitted
Acquisitions, and (v) Capital Expenditures made with the proceeds of (x) equity
issuances of Holdings concurrently with the issuance thereof, to the extent the
Net Cash Proceeds thereof are not required to be applied to mandatory
prepayments pursuant to Section 4.2(a) or (y) issuances of subordinated
Indebtedness permitted under Section 8.2(p).

 

(b)   Incur any Net Cash Investment Costs, except
(i) Net Cash Investment Costs of the Borrower and its Subsidiaries in the
ordinary course of business not exceeding for any fiscal year the following
amount with respect to such fiscal year:

 

	
  Fiscal Year

  	
   

  	
  Net Cash Investment Costs

  	
   

  
	
  2006

  	
   

  	
  $

  	
  65,000,000

  	
   

  
	
  2007

  	
   

  	
  $

  	
  72,500,000

  	
   

  
	
  2008

  	
   

  	
  $

  	
  77,500,000

  	
   

  
	
  2009 and
  each fiscal year thereafter

  	
   

  	
  $

  	
  80,000,000

  	
   

  

 

provided that (A) up
to 50% of any such amount referred to above (but in no event more than
$5,000,00 in any fiscal year), if not so expended in the fiscal year for which
it is permitted, may be carried over for expenditure in the next succeeding
fiscal year, and (B) Net Cash Investment Costs incurred pursuant to this clause
(i) during any fiscal year shall be deemed made, first,
in respect of amounts carried over from the prior fiscal year pursuant to
subclause (A) above, and second, to
amounts permitted for such fiscal year as provided above; (ii) Net Cash
Investment Costs made with the proceeds of any Reinvestment Deferred Amount;
and (iii) Net Cash Investment Costs in any fiscal year up to the amount of
capital contributions from the Sponsor and its Control Investment Affiliates or
any other Person within such fiscal year, other than proceeds received in
respect of underwritten public offerings of Holdings, the Borrower or any of
its Subsidiaries, and proceeds applied to either (x) fund Permitted
Acquisitions or (y) prepay Term Loans and/or reduce Revolving Commitments in
accordance with Section 4.2.

 

75

 

8.8.          Investments. 
Make any advance, loan, extension of credit (by way of guaranty or
otherwise) or capital contribution to, or purchase any Capital Stock, bonds,
notes, debentures or other debt securities of, or any assets constituting a
business unit of, or make any other investment in, any Person (all of the
foregoing, “Investments”), except:

 

(a)   extensions of trade credit in the ordinary
course of business;

 

(b)   Investments in Cash Equivalents;

 

(c)   Guarantee Obligations permitted by Section
8.2;

 

(d)   loans and advances to employees of any Group
Member in the ordinary course of business (including for travel, entertainment
and relocation expenses) in an aggregate amount for all Group Members not to
exceed $1,000,000 at any one time outstanding;

 

(e)   Investments in assets useful in the business
of the Borrower and its Subsidiaries made by the Borrower or any of its
Subsidiaries with the proceeds of any Reinvestment Deferred Amount (provided
that any such Investments constituting Investments in Foreign Subsidiaries
shall be included in the maximum amount permitted under Section 8.8(p),
notwithstanding the exclusion in such clause regarding proceeds of Reinvestment
Deferred Amounts);

 

(f)    intercompany Investments by any Group Member
in the Borrower or any Person that, prior to such Investment, is a Subsidiary
Guarantor; provided that any such Investment in the form of loans or advances
shall be evidenced by a Subordinated Intercompany Note which shall (to the
extent representing obligations owed to a Loan Party) be pledged to the
Administrative Agent;

 

(g)   Permitted Acquisitions and Capital
Expenditures permitted under this Agreement;

 

(h)   Hedge Agreements entered into for
non-speculative purposes and otherwise permitted under this Agreement;

 

(i)     earnest money deposits required in
connection with Permitted Acquisitions;

 

(j)    any Loan Party may capitalize or forgive any
Indebtedness owed to it by any other Loan Party;

 

(k)   Investments acquired in connection with
Permitted Acquisitions;

 

(l)    Investments acquired in connection with the
settlement of accounts, bankruptcy or reorganization of suppliers or customers;

 

(m)  Investments received as the non-cash portion
of consideration received in connection with Dispositions permitted under this
Agreement;

 

76

 

(n)   to the extent permitted by applicable law,
any Loan Party and its Subsidiaries may accept notes from officers, directors
and employees in exchange for equity interests purchased by such officers,
directors or employees pursuant to a stock ownership or purchase plan or
compensation plan of such Loan Party or Subsidiary;

 

(o)   the Borrower or any of its Subsidiaries may
make a loan to, or an Investment in, Holdings that could otherwise be made as a
Restricted Payment;

 

(p)   in addition to Investments otherwise
expressly permitted by this Section, Investments by the Borrower or any of its
Subsidiaries in an aggregate amount (valued at cost) not to exceed $10,000,000
during the term of this Agreement (excluding any Investment made with the
proceeds of (x) any Reinvestment Deferred Amount or (y) equity issuances of
Holdings not otherwise required to be applied pursuant to Section 4.2(a)); and

 

(q) Investments
existing on the Closing Date set forth on Schedule 8.8.

 

The
amount of any Investment shall be the initial amount of such Investment less
all repayments, returns, dividends and distributions received in respect of
such Investment and less all liabilities expressly assumed by another person in
connection with the sale of such Investment.

 

8.9.          Optional Payments and Modifications of Certain Debt
Instruments.  (a)  Make any optional or voluntary payment,
prepayment, repurchase or redemption of or otherwise optionally or voluntarily
defease or segregate funds with respect to any Indebtedness the payment of
principal and interest of which and other obligations of the Borrower or any of
its Subsidiaries in respect of which are subordinated to the prior payment in
full of the obligations hereunder (other than the Senior Subordinated Notes,
which may be refinanced with the proceeds of a Permitted Refinancing or an
equity issuance of Holdings pursuant to the terms hereof), (b) amend, modify,
waive or otherwise change, or consent or agree to any amendment, modification,
waiver or other change to, any of the terms of any Indebtedness described in
clause (a) (including the Senior Subordinated Notes) (other than any such
amendment, modification, waiver or other change that (i) would extend the maturity
or reduce the amount of any payment of principal thereof or reduce the rate or
extend any date for payment of interest thereon or (ii) could not reasonably be
expected to increase the obligations of the obligor or confer additional rights
on the holder of such subordinated Indebtedness, in each case, in a manner
reasonably expected to be materially adverse to the interests of the Lenders;
or (c) designate any Indebtedness (other than obligations of the Loan Parties
pursuant to the Loan Documents) as “Designated Senior Indebtedness” (or any
other defined term having a similar purpose) for the purposes of the indenture
governing the Senior Subordinated Notes or any Permitted Refinancing thereof.

 

8.10.        Transactions with Affiliates.  Enter into any transaction, including any
purchase, sale, lease or exchange of property, the rendering of any service or
the payment of any management, advisory or similar fees, with any Affiliate
(other than Holdings, the Borrower or any Wholly Owned Subsidiary Guarantor)
unless such transaction is (a) otherwise permitted under this Agreement or
(b) upon fair and reasonable terms no less favorable to the relevant Group
Member than it would obtain in a comparable arm’s length transaction with a
Person that

 

77

 

is not an Affiliate. 
Notwithstanding the foregoing, (i) Holdings may enter into the merger
with POI Acquisition I, Inc. as permitted by Section 8.4(c) (which merger may
be accomplished by an exchange of the existing shares of Holdings held by such
entity for identical shares of Holdings which are concurrently distributed to
the equityholders of POI Acquisition I, Inc. in accordance with their interests
therein and immediately followed by the dissolution of POI Acquisition I, Inc.),
and (ii) the Borrower and its Subsidiaries may:

 

(a)   pay compensation, expense reimbursement and
indemnities to officers and directors of the Loan Parties and their
Subsidiaries in the ordinary course of business;

 

(b)   enter into employment contracts with officers
and management of the Loan Parties and their Subsidiaries;

 

(c)   engage in transactions solely among Foreign
Subsidiaries;

 

(d)   pay expense reimbursements pursuant to the
Management Agreement substantially in the form most recently delivered to the
Administrative Agent prior to the Closing Date, and without further
modification thereto as to amounts payable thereunder; and

 

(e)   so long as no Default or Event of Default
shall have occurred and be continuing, pay to the Sponsor and its Control Investment
Affiliates monitoring and transactions fees pursuant to the Management
Agreement substantially in the form most recently delivered to the
Administrative Agent prior to the Closing Date, and without further
modification thereto as to amounts payable thereunder; provided that the
aggregate amount of monitoring fees paid in cash shall not to exceed $1,500,000
in any fiscal year of Holdings; provided  further, that such fees
not paid shall accrue and be paid when the applicable Default or Event of Default
has been cured or waived and no additional Default or Event of Default has
occurred and is continuing or would arise as a result of such payment.

 

8.11.        Sales and Leasebacks. 
Enter into any arrangement with any Person providing for the leasing by
any Group Member of real or personal property that has been or is to be sold or
transferred by such Group Member to such Person or to any other Person to whom
funds have been or are to be advanced by such Person on the security of such
property or rental obligations of such Group Member.

 

8.12.        Hedge Agreements. 
Enter into any Hedge Agreement, except Hedge Agreements entered into in
order to effectively cap, collar or exchange interest rates (from fixed to
floating rates, from one floating rate to another floating rate or otherwise)
with respect to any interest-bearing liability or investment of the Borrower or
any Subsidiary.

 

8.13.        Changes in Fiscal Periods.  Permit the fiscal year of the Borrower to end
on a day other than December 31 or change Holdings’ method of determining
fiscal quarters.

 

8.14.        Negative Pledge Clauses. 
Enter into or suffer to exist or become effective any agreement that
prohibits or limits the ability of any Group Member to create, incur, assume or
suffer to exist any Lien upon any of its property or revenues, whether now
owned or hereafter

 

78

 

acquired, other than (a) this Agreement and the other Loan Documents,
(b) any agreements governing any purchase money Liens or Capital Lease
Obligations otherwise permitted hereby (in which case, any prohibition or
limitation shall only be effective against the assets financed thereby), (c)
the documentation evidencing the Senior Subordinated Notes and any Permitted
Refinancing thereof, (d) contained in agreements relating to the sale of a
Subsidiary permitted hereunder pending such sale and only with respect to the
specific property subject to sale, (e) contained in agreements evidencing
Indebtedness permitted under Section 8.2(k), solely with respect to property of
Foreign Subsidiaries and (f) contained in licenses or leases entered into in
the ordinary course of business.

 

8.15.        Clauses Restricting Subsidiary Distributions.  Enter into or suffer to exist or become
effective any consensual encumbrance or restriction on the ability of any
Subsidiary of the Borrower to (a) make Restricted Payments in respect of any
Capital Stock of such Subsidiary held by, or pay any Indebtedness owed to, the
Borrower or any other Subsidiary of the Borrower, (b) make loans or advances
to, or other Investments in, the Borrower or any other Subsidiary of the
Borrower or (c) transfer any of its assets to the Borrower or any other
Subsidiary of the Borrower, except for such encumbrances or restrictions
existing under or by reason of (i) any restrictions existing under the Loan
Documents, (ii) any restrictions with respect to a Subsidiary imposed pursuant
to an agreement that has been entered into in connection with the Disposition
of all or substantially all of the Capital Stock or assets of such Subsidiary,
(iii) contained in the documentation evidencing the Senior Subordinated Notes
and any Permitted Refinancing thereof, (iv) contained in licenses or leases
entered into in the ordinary course of business, (v) contained in agreements
relating to the sale of assets permitted hereunder pending such sale and only
with respect to the specific property subject to sale, and (vi) contained in
agreements evidencing Indebtedness permitted under Section 8.2(k), solely with
respect to property of Foreign Subsidiaries.

 

8.16.        Lines of Business. 
Enter into any business, either directly or through any Subsidiary,
except for those businesses in which the Borrower and its Subsidiaries are
engaged on the date of this Agreement or that are reasonably related thereto.

 

8.17.        Limitations on the Activities of Holdings.    In the case of Holdings, notwithstanding
anything to the contrary in this Agreement or any other Loan Document, (a)
conduct, transact or otherwise engage in, or commit to conduct, transact or
otherwise engage in, any material business or operations other than those
incidental to its ownership of the Capital Stock of the Borrower and activities
incidental to the maintenance of its corporate existence, (b) incur, create,
assume or suffer to exist any material Indebtedness or other liabilities or
financial obligations, except (i) nonconsensual obligations imposed by
operation of law, (ii) pursuant to the Loan Documents to which it is a party
and (iii) obligations with respect to its Capital Stock, or (c) own, lease,
manage or otherwise operate any material properties or assets (including cash
(other than cash received in connection with dividends made by the Borrower in
accordance with Section 8.6 pending application in the manner contemplated by
said Section or cash to be contributed to the Borrower) and cash equivalents)
other than the ownership of shares of Capital Stock of the Borrower.

 

79

 

SECTION 9.  EVENTS OF DEFAULT

 

If any of the following events shall occur
and be continuing:

 

(a)   the Borrower shall fail to pay any principal
of any Loan or Reimbursement Obligation when due in accordance with the terms
hereof; or the Borrower shall fail to pay any interest on any Loan or
Reimbursement Obligation, or any other amount payable hereunder or under any
other Loan Document, within five Business Days after any such interest or other
amount becomes due in accordance with the terms hereof; or

 

(b)   any representation or warranty made or deemed
made by any Loan Party herein or in any other Loan Document or that is
contained in any certificate, document or financial or other statement
furnished by it at any time under or in connection with this Agreement or any
such other Loan Document shall prove to have been inaccurate in any material
respect on or as of the date made or deemed made except for representations and
warranties which specifically relate to an earlier specific date, in which case
such representations and warranties shall have been inaccurate in any material
respect as of such earlier date; or

 

(c)   (i) 
any Loan Party shall default in the observance or performance of any
agreement contained in clause (i) or (ii) of Section 7.4(a) (with respect to
Holdings and the Borrower only), Section 7.7(a) or Section 8 of this Agreement
or Sections 5.5 and 5.7(b) of the Guarantee and Collateral Agreement or (ii) an
“Event of Default” under and as defined in any Mortgage shall have occurred and
be continuing; or

 

(d)   any Loan Party shall default in the
observance or performance of any other agreement contained in this Agreement or
any other Loan Document (other than as provided in paragraphs (a) through (c)
of this Section), and such default shall continue for a period of 30 days after
the earlier of (i) an officer of such Loan Party becoming aware of such default
or (ii) receipt by the Borrower of notice from the Administrative Agent or any
Lender of such default; or

 

(e)   any Group Member shall (i) default in making
any payment of any principal of any Indebtedness (including any Guarantee
Obligation, but excluding the Loans) on the scheduled or original due date with
respect thereto; or (ii) default in making any payment of any interest on any
such Indebtedness beyond the period of grace, if any, provided in the
instrument or agreement under which such Indebtedness was created; or (iii)
default in the observance or performance of any other agreement or condition
relating to any such Indebtedness or contained in any instrument or agreement evidencing,
securing or relating thereto, or any other event shall occur or condition
exist, the effect of which default or other event or condition is to cause, or
to permit the holder or beneficiary of such Indebtedness (or a trustee or agent
on behalf of such holder or beneficiary) to cause, with the giving of notice if
required, such Indebtedness to become due prior to its stated maturity or to
become subject to a mandatory offer to purchase by the obligor thereunder or
(in the case of any such Indebtedness constituting a Guarantee Obligation) to
become payable; provided, that a default, event or condition described
in clause (i), (ii) or (iii) of this paragraph (e) shall not at any time
constitute an Event of Default unless, at such time, one or more defaults,
events or conditions of the type described in clauses (i), (ii) and

 

80

 

(iii) of this paragraph (e)
shall have occurred and be continuing with respect to Indebtedness the
outstanding principal amount of which exceeds in the aggregate $15,000,000; or

 

(f)    (i) any Group Member shall commence any
case, proceeding or other action (A) under any existing or future law of any
jurisdiction, domestic or foreign, relating to bankruptcy, insolvency,
reorganization, administration or relief of debtors, seeking to have an order
for relief entered with respect to it, or seeking to adjudicate it a bankrupt
or insolvent, or seeking reorganization, arrangement, adjustment, winding-up,
liquidation, dissolution, composition, receivership or other relief with
respect to it or its debts, or (B) seeking appointment of a receiver, trustee,
custodian, conservator or other similar official for it or for all or any
substantial part of its assets, or any Group Member shall make a general
assignment for the benefit of its creditors; or (ii) there shall be commenced
against any Group Member any case, proceeding or other action of a nature
referred to in clause (i) above that (A) results in the entry of an order for
relief or any such adjudication or appointment or (B) remains undismissed,
undischarged or unbonded for a period of 60 days; or (iii) there shall be
commenced against any Group Member any case, proceeding or other action seeking
issuance of a warrant of attachment, execution, distraint or similar process
against all or any substantial part of its assets that results in the entry of
an order for any such relief that shall not have been vacated, discharged, or
stayed or bonded pending appeal within 60 days from the entry thereof; or (iv)
any Group Member shall take any action in furtherance of, or indicating its
consent to, approval of, or acquiescence in, any of the acts set forth in
clause (i), (ii), or (iii) above; or (v) any Group Member shall generally not,
or shall be unable to, or shall admit in writing its inability to generally,
pay its debts as they become due; or

 

(g)   (i) any Person shall engage in any
“prohibited transaction” (as defined in Section 406 of ERISA or
Section 4975 of the Code) involving any Plan, (ii) any “accumulated
funding deficiency” (as defined in Section 302 of ERISA), whether or not
waived, shall exist with respect to any Plan or any Lien in favor of the PBGC
or a Plan shall arise on the assets of any Group Member or any Commonly
Controlled Entity, (iii) a Reportable Event shall occur with respect to, or
proceedings shall commence to have a trustee appointed, or a trustee shall be
appointed, to administer or to terminate, any Single Employer Plan, which
Reportable Event or commencement of proceedings or appointment of a trustee is,
in the reasonable opinion of the Required Lenders, likely to result in the
termination of such Plan for purposes of Title IV of ERISA, (iv) any Single
Employer Plan shall terminate for purposes of Title IV of ERISA, (v) any Group
Member or any Commonly Controlled Entity shall, or in the reasonable opinion of
the Required Lenders is likely to, incur any liability in connection with a
withdrawal from, or the Insolvency or Reorganization of, a Multiemployer Plan
or (vi) any other event or condition shall occur or exist with respect to a
Plan; and in each case in clauses (i), (iii), (iv), (v) and (vi) above, such
event or condition, together with all other such events or conditions, if any,
could, in the sole judgment of the Required Lenders, reasonably be expected to
have a Material Adverse Effect; or

 

(h)   one or more judgments or decrees shall be
entered against any Group Member involving in the aggregate a liability
(excluding amounts covered by insurance as to which the relevant insurance
company has not denied coverage, after reaching a final decision regarding

 

81

 

such coverage) of $15,000,000
or more, and all such judgments or decrees shall not have been vacated,
discharged, stayed or bonded pending appeal within 45 days from the entry
thereof; or

 

(i)    any of the Security Documents (except those
that relate solely to an immaterial portion of the Collateral) shall cease, for
any reason, to be in full force and effect, or any Loan Party or any Affiliate
of any Loan Party shall so assert, or any Lien created by any of the Security
Documents (other than any such Lien on an immaterial portion of the Collateral)
shall cease to be enforceable and of the same effect and priority purported to
be created thereby; or

 

(j)    the guarantee contained in Section 2 of the
Guarantee and Collateral Agreement shall cease, for any reason other than in
accordance with its terms, to be in full force and effect or any Loan Party or
any Affiliate of any Loan Party shall so assert; or

 

(k)   (i) at any time prior to a Qualified PO, the
Permitted Investors shall fail to own directly or indirectly, beneficially and
of record, Capital Stock representing at least 51% of the aggregate ordinary
voting power and aggregate equity value represented by the issued and
outstanding Capital Stock of Holdings; (ii) after a Qualified PO, any “person”
or “group” (within the meaning of Rule 13d-5 of the Securities Exchange Act of
1934 as in effect on the date hereof) other than the Permitted Investors shall
own directly or indirectly, beneficially or of record, Capital Stock
representing either (A) more than 35% of either the aggregate ordinary voting
power or the aggregate equity value represented by the issued and outstanding
Capital Stock of Holdings or (B) a greater percentage of either the aggregate
ordinary voting power or the aggregate equity value represented by the issued
and outstanding Capital Stock of Holdings then held, directly or indirectly,
beneficially and of record, by the Permitted Investors; (iii) a majority of the
seats (other than vacant seats) on the board of directors of Holdings shall at
any time be occupied by persons who are not Continuing Directors; (iv) Holdings
shall at any time fail to own directly or indirectly, beneficially and of
record, 100% of each class of issued and outstanding Capital Stock of the
Borrower free and clear of all Liens (other than Liens created by the Guarantee
and Collateral Agreement and Liens arising as a matter of law that do not
detract from the value thereof in any material respect); or (v) a Specified
Change of Control shall occur; or

 

(l)      the
Senior Subordinated Notes, any Permitted Refinancing thereof (to the extent the
applicable Indebtedness is subordinated to the Obligations) or the guarantees
thereof shall cease, for any reason, to be validly subordinated to the
Obligations or the obligations of the Subsidiary Guarantors under the Guarantee
and Collateral Agreement, as the case may be, as provided in the documentation
governing such Senior Subordinated Notes or Permitted Refinancing thereof, as
the case may be, or any Loan Party, any Affiliate of any Loan Party, the
trustee in respect of the Senior Subordinated Notes (or such Permitted
Refinancing thereof) or the holders of at least 25% in aggregate principal
amount of the Senior Subordinated Notes (or Indebtedness comprising such
Permitted Refinancing thereof) shall so assert;

 

then, and in
any such event, (A) if such event is an Event of Default specified in clause
(i) or (ii) of paragraph (f) above with respect to the Borrower, automatically
the Commitments shall immediately terminate and the Loans hereunder (with
accrued interest thereon) and all other

 

82

 

amounts owing
under this Agreement and the other Loan Documents (including all amounts of L/C
Obligations, whether or not the beneficiaries of the then outstanding Letters
of Credit shall have presented the documents required thereunder) shall
immediately become due and payable, and (B) if such event is any other Event of
Default, either or both of the following actions may be taken:  (i) with the consent of the Required Lenders,
the Administrative Agent may, or upon the request of the Required Lenders, the
Administrative Agent shall, by notice to the Borrower declare the Revolving
Commitments to be terminated forthwith, whereupon the Revolving Commitments
shall immediately terminate; and (ii) with the consent of the Required Lenders,
the Administrative Agent may, or upon the request of the Required Lenders, the
Administrative Agent shall, by notice to the Borrower, declare the Loans
hereunder (with accrued interest thereon) and all other amounts owing under
this Agreement and the other Loan Documents (including all amounts of L/C
Obligations, whether or not the beneficiaries of the then outstanding Letters
of Credit shall have presented the documents required thereunder) to be due and
payable forthwith, whereupon the same shall immediately become due and payable.  With respect to all Letters of Credit with
respect to which presentment for honor shall not have occurred at the time of
an acceleration pursuant to this paragraph, the Borrower shall at such time
deposit in a cash collateral account opened by the Administrative Agent an
amount equal to the aggregate then undrawn and unexpired amount of such Letters
of Credit.  Amounts held in such cash
collateral account shall be applied by the Administrative Agent to the payment
of drafts drawn under such Letters of Credit, and the unused portion thereof
after all such Letters of Credit shall have expired or been fully drawn upon,
if any, shall be applied to repay other obligations of the Borrower hereunder
and under the other Loan Documents. 
After all such Letters of Credit shall have expired or been fully drawn
upon, all Reimbursement Obligations shall have been satisfied and all other
obligations of the Borrower hereunder and under the other Loan Documents shall
have been paid in full, the balance, if any, in such cash collateral account
shall be returned to the Borrower (or such other Person as may be lawfully
entitled thereto).  Except as expressly
provided above in this Section, presentment, demand, protest and all other
notices of any kind are hereby expressly waived by the Borrower.

 

SECTION 10.  THE AGENTS

 

10.1.        Appointment.  Each
Lender hereby irrevocably designates and appoints each Agent as the agent of
such Lender under this Agreement and the other Loan Documents, and each such
Lender irrevocably authorizes such Agent, in such capacity, to take such action
on its behalf under the provisions of this Agreement and the other Loan
Documents and to exercise such powers and perform such duties as are expressly
delegated to such Agent by the terms of this Agreement and the other Loan
Documents, together with such other powers as are reasonably incidental
thereto.   Notwithstanding any provision
to the contrary elsewhere in this Agreement, no Agent shall have any duties or
responsibilities, except those expressly set forth herein, or any fiduciary
relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Agreement or any other Loan Document or otherwise exist against any Agent.

 

10.2.        Delegation of Duties. 
Each Agent may execute any of its duties under this Agreement and the
other Loan Documents by or through agents or attorneys-in-fact and shall be
entitled to advice of counsel concerning all matters pertaining to such
duties.  No Agent shall be

 

83

 

responsible for the negligence or misconduct of any agents or attorneys
in-fact selected by it with reasonable care.

 

10.3.        Exculpatory Provisions. 
Neither any Agent nor any of their respective officers, directors,
employees, agents, attorneys-in-fact or Affiliates shall be (i) liable for any
action lawfully taken or omitted to be taken by it or such Person under or in
connection with this Agreement or any other Loan Document (except to the extent
that any of the foregoing are found by a final and nonappealable decision of a
court of competent jurisdiction to have resulted from its or such Person’s own
gross negligence or willful misconduct) or (ii) responsible in any manner to
any of the Lenders for any recitals, statements, representations or warranties
made by any Loan Party or any officer thereof contained in this Agreement or
any other Loan Document or in any certificate, report, statement or other
document referred to or provided for in, or received by the Agents under or in
connection with, this Agreement or any other Loan Document or for the value,
validity, effectiveness, genuineness, enforceability or sufficiency of this
Agreement or any other Loan Document or for any failure of any Loan Party a
party thereto to perform its obligations hereunder or thereunder.  The Agents shall not be under any obligation
to any Lender to ascertain or to inquire as to the observance or performance of
any of the agreements contained in, or conditions of, this Agreement or any
other Loan Document, or to inspect the properties, books or records of any Loan
Party.

 

10.4.        Reliance by Agents. 
Each Agent shall be entitled to rely, and shall be fully protected in
relying, upon any instrument, writing, resolution, notice, consent,
certificate, affidavit, letter, telecopy, telex or teletype message, statement,
order or other document or conversation believed by it to be genuine and
correct and to have been signed, sent or made by the proper Person or Persons and
upon advice and statements of legal counsel (including counsel to Holdings or
the Borrower), independent accountants and other experts selected by such
Agent.  The Administrative Agent may deem
and treat the payee of any Note as the owner thereof for all purposes unless a
written notice of assignment, negotiation or transfer thereof shall have been
filed with the Administrative Agent. 
Each Agent shall be fully justified in failing or refusing to take any
action under this Agreement or any other Loan Document unless it shall first
receive such advice or concurrence of the Required Lenders (or, if so specified
by this Agreement, all Lenders) as it deems appropriate or it shall first be
indemnified to its satisfaction by the Lenders against any and all liability
and expense that may be incurred by it by reason of taking or continuing to
take any such action.  The Agents shall
in all cases be fully protected in acting, or in refraining from acting, under
this Agreement and the other Loan Documents in accordance with a request of the
Required Lenders (or, if so specified by this Agreement, all Lenders), and such
request and any action taken or failure to act pursuant thereto shall be
binding upon all the Lenders and all future holders of the Loans.

 

10.5.        Notice of Default. 
No Agent shall be deemed to have knowledge or notice of the occurrence
of any Default or Event of Default hereunder unless such Agent has received
notice from a Lender, Holdings or the Borrower referring to this Agreement,
describing such Default or Event of Default and stating that such notice is a
“notice of default”.  In the event that
the Administrative Agent receives such a notice, the Administrative Agent shall
give notice thereof to the Lenders.  The
Administrative Agent shall take such action with respect to such Default or
Event of Default as shall be reasonably directed by the Required Lenders (or,
if so

 

84

 

specified by this Agreement, all Lenders or any other instructing group
of Lenders specified by this Agreement); provided that unless and until the
Administrative Agent shall have received such directions, the Administrative
Agent may (but shall not be obligated to) take such action, or refrain from
taking such action, with respect to such Default or Event of Default as it
shall deem advisable in the best interests of the Lenders.

 

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

 

10.7.        Indemnification. 
The Lenders agree to indemnify each Agent in its capacity as such (to
the extent not reimbursed by Holdings or the Borrower and without limiting the
obligation of Holdings or the Borrower to do so), ratably according to their
respective Aggregate Exposure Percentages in effect on the date on which
indemnification is sought under this Section (or, if indemnification is sought
after the date upon which the Commitments shall have terminated and the Loans
shall have been paid in full, ratably in accordance with such Aggregate
Exposure Percentages immediately prior to such date), from and against any and
all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind whatsoever that may at any
time (whether before or after the payment of the Loans) be imposed on, incurred
by or asserted against such Agent in any way relating to or arising out of, the
Commitments, this Agreement, any of the other Loan Documents or any documents
contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby or any action taken or omitted by such Agent
under or in connection with any of the foregoing; provided that no Lender shall
be liable for the payment of any portion of such liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or

 

85

 

disbursements that are found by a final and nonappealable decision of a
court of competent jurisdiction to have resulted from such Agent’s gross
negligence or willful misconduct.  The
agreements in this Section shall survive the payment of the Loans and all other
amounts payable hereunder.

 

10.8.        Agent in Its Individual Capacity.  Each Agent and its Affiliates may make loans
to, accept deposits from and generally engage in any kind of business with any
Loan Party as though such Agent were not an Agent.  With respect to its Loans made or renewed by
it and with respect to any Letter of Credit issued or participated in by it,
each Agent shall have the same rights and powers under this Agreement and the
other Loan Documents as any Lender and may exercise the same as though it were
not an Agent, and the terms “Lender” and “Lenders” shall include each Agent in
its individual capacity.

 

10.9.        Successor Administrative Agent.  The Administrative Agent may resign as Administrative
Agent upon 10 Business Days’ notice to the Lenders and the Borrower.  If the Administrative Agent shall resign as
Administrative Agent under this Agreement and the other Loan Documents, then
the Required Lenders shall appoint from among the Lenders a successor agent for
the Lenders, which successor agent shall (unless an Event of Default under
Section 9(a) or Section 9(f) with respect to the Borrower shall have occurred
and be continuing) be subject to approval by the Borrower (which approval shall
not be unreasonably withheld or delayed), whereupon such successor agent shall
succeed to the rights, powers and duties of the Administrative Agent, and the
term “Administrative Agent” shall mean such successor agent effective upon such
appointment and approval, and the former Administrative Agent’s rights, powers
and duties as Administrative Agent shall be terminated, without any other or
further act or deed on the part of such former Administrative Agent or any of
the parties to this Agreement or any holders of the Loans.  If no successor agent has accepted
appointment as Administrative Agent by the date that is 10 Business Days
following a retiring Administrative Agent’s notice of resignation, the retiring
Administrative Agent’s resignation shall nevertheless thereupon become
effective and the Lenders shall assume and perform all of the duties of the
Administrative Agent hereunder until such time, if any, as the Required Lenders
appoint a successor agent as provided for above.  The Syndication Agent and/or the Initial
Syndication Agent may, at any time, by notice to the Lenders and the
Administrative Agent, resign as Syndication Agent or Initial Syndication Agent
hereunder, as the case may be, whereupon the duties, rights, obligations and
responsibilities of such Syndication Agent or Initial Syndication Agent
hereunder, as the case may be, shall automatically be assumed by, and inure to
the benefit of, the Administrative Agent, without any further act by the
Syndication Agent, the Initial Syndication Agent, the Administrative Agent or
any Lender.  After any retiring
Administrative Agent’s resignation as Administrative Agent, the provisions of
this Section 10 shall inure to its benefit as to any actions taken or omitted
to be taken by it while it was Administrative Agent under this Agreement and
the other Loan Documents.

 

10.10.      Agents Generally. 
Except as expressly set forth herein, no Agent shall have any duties or
responsibilities hereunder in its capacity as such.

 

86

 

10.11.      The Lead Arrangers. 
The Lead Arranger and each Initial Lead Arranger, in its capacity as
such, shall have no duties or responsibilities, and shall incur no liability,
under this Agreement and other Loan Documents.

 

10.12.      Withholding Tax.  To
the extent required by any applicable law, the Administrative Agent may
withhold from any interest payment to any Lender an amount equivalent to any
applicable withholding tax.  If any
Governmental Authority asserts a claim that the Administrative Agent did not
properly withhold tax from amounts paid to or for the account of any Lender
because the appropriate form was not delivered or was not properly executed or
because such Lender failed to notify the Administrative Agent of a change in circumstance
which rendered the exemption from, or reduction of, withholding tax ineffective
or for any other reason, such Lender shall indemnify the Administrative Agent
fully for all amounts paid, directly or indirectly, by the Administrative Agent
as tax or otherwise, including any penalties or interest and together with all
expenses (including legal expenses, allocated internal costs and out-of-pocket
expenses) incurred.

 

10.13.      Intercreditor Agreement. 
Each Lender hereby consents to and approves each and all of the
provisions of the Intercreditor Agreement substantially in the form of Exhibit
N, and irrevocably authorizes and directs the Administrative Agent to execute
and deliver the Intercreditor Agreement and to exercise and enforce its rights
and remedies and perform its obligations thereunder.

 

SECTION 11.  MISCELLANEOUS

 

11.1.        Amendments and Waivers. 
Neither this Agreement, any other Loan Document, nor any terms hereof or
thereof may be amended, supplemented or modified except in accordance with the
provisions of this Section 11.1.  The
Required Lenders and each Loan Party party to the relevant Loan Document may,
or, with the written consent of the Required Lenders, the Administrative Agent
and each Loan Party party to the relevant Loan Document may, from time to time,
(a) enter into written amendments, supplements or modifications hereto and to
the other Loan Documents for the purpose of adding any provisions to this
Agreement or the other Loan Documents or changing in any manner the rights of the
Lenders or of the Loan Parties hereunder or thereunder or (b) waive, on such
terms and conditions as the Required Lenders or the Administrative Agent, as
the case may be, may specify in such instrument, any of the requirements of
this Agreement or the other Loan Documents or any Default or Event of Default
and its consequences; provided, however, that no such waiver and
no such amendment, supplement or modification shall (i) forgive any principal
amount or extend the final scheduled date of maturity of any Loan, extend the
scheduled date of any amortization payment in respect of any Term Loan, reduce
the stated rate of any interest or fee payable hereunder (except (x) in
connection with the waiver of applicability of any post-default increase in
interest rates, which waiver shall be effective with the consent of the
Required Lenders) and (y) that any amendment or modification of defined terms
used in the financial covenants in this Agreement shall not constitute a
reduction in the rate of interest or fees for purposes of this clause (i)) or
extend the scheduled date of any payment thereof, or increase the amount or
extend the expiration date of any Lender’s Revolving Commitment, in each case
without the written consent of each Lender directly affected thereby;  (ii) eliminate or reduce the voting rights of
any Lender under this

 

87

 

Section 11.1 without the written consent of such Lender; (iii) reduce
any percentage specified in the definition of Required Lenders, consent to the
assignment or transfer by the Borrower of any of its rights and obligations
under this Agreement and the other Loan Documents, release all or substantially
all of the Collateral or release any Subsidiary Guarantor from its obligations under
the Guarantee and Collateral Agreement (except as otherwise expressly permitted
hereunder or under the other Loan Documents), in each case without the written
consent of all Lenders; (iv) amend, modify or waive any condition precedent to
any extension of credit under the Revolving Facility set forth in Section 6.2
(including in connection with any waiver of an existing Default or Event of
Default) without the written consent of the Majority Facility Lenders with
respect to the Revolving Facility; (v) amend, modify or waive any
provision of Section 4.8 without the written consent of the Majority Facility
Lenders in respect of the Facility adversely affected thereby; (vi) reduce the
percentage specified in the definition of Majority Facility Lenders with respect
to any Facility without the written consent of all Lenders under such Facility;
(vii) reduce the amounts required to be applied to prepay the Loans pursuant to
section 4.2, or amend any of the defined terms herein in such a manner as to
create a similar result without the written consent of the Majority Facility
Lenders of each adversely affected facility; (viii) amend, modify or waive any
provision of Section 10 without the written consent of each Agent adversely
affected thereby; (ix) amend, modify or waive any provision of Section 3.3 or
3.4 without the written consent of the Swingline Lender; or (x) amend, modify
or waive any provision of Sections 3.7 to 3.14 without the written consent of
the Issuing Lender.  Any such waiver and
any such amendment, supplement or modification shall apply equally to each of
the Lenders and shall be binding upon the Loan Parties, the Lenders, the Agents
and all future holders of the Loans.  In
the case of any waiver, the Loan Parties, the Lenders and the Agents shall be
restored to their former position and rights hereunder and under the other Loan
Documents, and any Default or Event of Default waived shall be deemed to be
cured and not continuing; but no such waiver shall extend to any subsequent or
other Default or Event of Default, or impair any right consequent thereon.

 

Notwithstanding
the foregoing, this Agreement may be amended (or amended and restated) with the
written consent of the Required Lenders, the Administrative Agent and the
Borrower (a) to add one or more additional credit facilities to this Agreement
and to permit the extensions of credit from time to time outstanding thereunder
and the accrued interest and fees in respect thereof (collectively, the “Additional
Extensions of Credit”) to share ratably in the benefits of this Agreement
and the other Loan Documents with the Term Loans and Revolving Extensions of
Credit and the accrued interest and fees in respect thereof and (b) to include
appropriately the Lenders holding such credit facilities in any determination
of the Required Lenders and Majority Facility Lenders; provided, that no
such amendment shall permit the Additional Extensions of Credit to share
ratably with or with preference to the Term Loans in the application of
mandatory prepayments without the consent of the Majority Facility Lenders
under the Term Loan Facility or otherwise to share ratably with or with
preference to the Revolving Extensions of Credit without the consent of the
Majority Facility Lenders under the Revolving Facility.

 

In addition,
notwithstanding the foregoing, this Agreement may be amended with the written
consent of the Administrative Agent, the Borrower and the Lenders providing the

 

88

 

relevant
Replacement Term Loans (as defined below) to permit the refinancing of all
outstanding Term Loans (“Refinanced Term Loans”) with a replacement term
loan tranche hereunder (“Replacement Term Loans”), provided that
(a) the aggregate principal amount of such Replacement Term Loans shall not
exceed the aggregate principal amount of such Refinanced Term Loans, (b) the
Applicable Margin for such Replacement Term Loans shall not be higher than the
Applicable Margin for such Refinanced Term Loans, (c) the weighted average life
to maturity of such Replacement Term Loans shall not be shorter than the
weighted average life to maturity of such Refinanced Term Loans at the time of
such refinancing and (d) all other terms applicable to such Replacement Term
Loans shall be substantially identical to, or less favorable to the Lenders
providing such Replacement Term Loans than, those applicable to such Refinanced
Term Loans, except to the extent necessary to provide for covenants and other
terms applicable to any period after the latest final maturity of the Term
Loans in effect immediately prior to such refinancing.

 

11.2.        Notices.  All
notices, requests and demands to or upon the respective parties hereto to be
effective shall be in writing (including by telecopy), and, unless otherwise
expressly provided herein, shall be deemed to have been duly given or made when
delivered, or three Business Days after being deposited in the mail, postage
prepaid, or, in the case of telecopy notice, when received, addressed as
follows in the case of Holdings, the Borrower and the Agents, and as set forth
in an administrative questionnaire delivered to the Administrative Agent in the
case of the Lenders, or to such other address as may be hereafter notified by
the respective parties hereto:

 

	
  Holdings:

  	
   

  	
  Protection One,
  Inc.

  
	
   

  	
   

  	
  1035 N. 3rd
  Street, Suite 101

  
	
   

  	
   

  	
  Lawrence, KS
  66044

  
	
   

  	
   

  	
  Attention:
  Darius Nevin

  
	
   

  	
   

  	
  Telecopy:
  (877) 299-0111

  
	
   

  	
   

  	
  Telephone:
  (305) 594-0231

  
	
   

  	
   

  	
   

  
	
  The
  Borrower:

  	
   

  	
  Protection
  One Alarm Monitoring, Inc.

  
	
   

  	
   

  	
  1035 N. 3rd
  Street, Suite 101

  
	
   

  	
   

  	
  Lawrence, KS
  66044

  
	
   

  	
   

  	
  Attention:
  Darius Nevin

  
	
   

  	
   

  	
  Telecopy:
  (877) 299-0111

  
	
   

  	
   

  	
  Telephone:
  (305) 594-0231

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with a copy
  to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Kirkland
  & Ellis LLP

  
	
   

  	
   

  	
  Attention:
  Louis R. Hernandez

  
	
   

  	
   

  	
  200 East
  Randolph Drive

  
	
   

  	
   

  	
  Chicago,
  Illinois 60601-6636

  
	
   

  	
   

  	
  Telecopy:
  (312)861-2200

  
	
   

  	
   

  	
  Telephone:
  (312)-861-2029

  

 

89

 

	
  The
  Administrative Agent:

  	
   

  	
  Bear Stearns
  Corporate Lending Inc.

  
	
   

  	
   

  	
  383 Madison
  Avenue

  
	
   

  	
   

  	
  New York, NY
  10179

  
	
   

  	
   

  	
  Attention:
  Stephen O’Keefe

  
	
   

  	
   

  	
  Telecopy:
  (212) 272-9743

  
	
   

  	
   

  	
  Telephone:
  (212) 272-9430

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with a copy
  to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Latham &
  Watkins LLP

  
	
   

  	
   

  	
  Attention:
  Michele O. Penzer

  
	
   

  	
   

  	
  885 Third
  Avenue, Suite 1000

  
	
   

  	
   

  	
  New York,
  New York 10022

  
	
   

  	
   

  	
  Telecopy:
  (212) 751-4864

  
	
   

  	
   

  	
  Telephone:
  (212)-906-1200

  

 

provided
that any notice, request or demand to or upon any Agent, the Issuing Lender or
the Lenders shall not be effective until received.

 

Notices and other
communications to the Lenders hereunder may be delivered or furnished by
electronic communications pursuant to procedures approved by the Administrative
Agent; provided that the foregoing shall not apply to notices pursuant
to Section 2 unless otherwise agreed by the Administrative Agent and the
applicable Lender.  The Administrative
Agent or the Borrower may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to
procedures approved by it; provided that approval of such procedures may
be limited to particular notices or communications.

 

11.3.        No Waiver; Cumulative Remedies.  No failure to exercise and no delay in
exercising, on the part of any Agent or any Lender, any right, remedy, power or
privilege hereunder or under the other Loan Documents shall operate as a waiver
thereof; nor shall any single or partial exercise of any right, remedy, power
or privilege hereunder preclude any other or further exercise thereof or the
exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges herein
provided are cumulative and not exclusive of any rights, remedies, powers and
privileges provided by law.

 

11.4.        Survival of Representations and Warranties.  All representations and warranties made
hereunder, in the other Loan Documents and in any document, certificate or
statement delivered pursuant hereto or in connection herewith shall survive the
execution and delivery of this Agreement and the making of the Loans and other
extensions of credit hereunder.

 

11.5.        Payment of Expenses and Taxes.  The Borrower agrees (a) to pay or reimburse
each Agent for all its reasonable out-of-pocket costs and expenses incurred in
connection with the development, preparation and execution of, and any
amendment, supplement or modification to, this Agreement and the other Loan
Documents and any other documents

 

90

 

prepared in connection herewith or therewith, and the consummation and
administration of the transactions contemplated hereby and thereby, including
the reasonable fees and disbursements of one counsel to such Agents (together
with such other special or local counsel as such Agents may deem appropriate)
and filing and recording fees and expenses, with statements with respect to the
foregoing to be submitted to the Borrower prior to the Restatement Date (in the
case of amounts to be paid on the Restatement Date) and from time to time
thereafter on a monthly basis or such other periodic basis as such Agent shall
deem appropriate, provided, however, that the Borrower shall have
received an invoice or similar writing setting forth such charges in reasonable
detail prior to the date such amounts are due, (b) to pay or reimburse each
Lender and Agent for all its out-of-pocket costs and expenses incurred in
connection with the enforcement or preservation of any rights under this
Agreement, the other Loan Documents and any such other documents, including the
fees and disbursements of counsel to each Lender and of counsel to such Agent,
(c) to pay, indemnify, and hold each Lender and Agent harmless from, any and
all recording and filing fees and any and all liabilities with respect to, or
resulting from any delay in paying, stamp, excise and other taxes, if any, that
may be payable or determined to be payable in connection with the execution and
delivery of, or consummation or administration of any of the transactions
contemplated by, or any amendment, supplement or modification of, or any waiver
or consent under or in respect of, this Agreement, the other Loan Documents and
any such other documents, and (d) to pay, indemnify, and hold each Lender and
Agent and their respective officers, directors, employees, Affiliates, agents
and controlling persons (each, an “Indemnitee”) harmless from and
against any and all other liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or
nature whatsoever with respect to the execution, delivery, enforcement,
performance and administration of this Agreement, the other Loan Documents and
any such other documents, including any of the foregoing relating to the use of
proceeds of the Loans or the violation of, noncompliance with or liability
under, any Environmental Law applicable to the operations of any Group Member
or any of the Properties or the unauthorized use by Persons of information or
other materials sent through electronic, telecommunications or other
information transmission systems that are intercepted by such Persons and the
reasonable fees and expenses of one legal counsel (in addition to such local
and special counsel as the Indemnitees shall deem appropriate) in connection
with claims, actions or proceedings by any Indemnitee against any Loan Party
under any Loan Document (all the foregoing in this clause (d), collectively,
the “Indemnified Liabilities”); provided, that the Borrower shall
have no obligation hereunder to any Indemnitee with respect to (i) Indemnified
Liabilities to the extent such Indemnified Liabilities are found by a final and
nonappealable decision of a court of competent jurisdiction to have resulted
from the gross negligence or willful misconduct of such Indemnitee (or any of
its officers, directors, or employees acting within the scope of their duties),
(ii) claims brought solely by one Indemnitee against another, or (iii) special,
exemplary, consequential or punitive damages arising out of the transactions
contemplated hereunder; provided  further, that it is understood
the provisions of clause (d) as to each Lender are not intended to grant
additional rights to Lenders similar to those granted to the Agents under
clause (a) above, the reimbursement of which is intended to be controlled
solely by such clause.  Without limiting
the foregoing, and to the extent permitted by applicable law, the Borrower
agrees not to assert and to cause its Subsidiaries not to assert, and hereby
waives and agrees to cause its Subsidiaries to waive, all rights for
contribution or any other rights of recovery with respect to all claims,
demands, penalties, fines, liabilities,

 

91

 

settlements, damages, costs and expenses of whatever kind or nature,
under or related to Environmental Laws, that any of them might have by statute
or otherwise against any Indemnitee.  All
amounts due under this Section 11.5 shall be payable not later than 10 days
after written demand therefor. 
Statements payable by the Borrower pursuant to this Section 11.5 shall
be submitted to Darius Nevin (Telephone No. (305) 599-0231) (Telecopy No.
(877) 299-0111), at the address of the Borrower set forth in Section 11.2, or
to such other Person or address as may be hereafter designated by the Borrower
in a written notice to the Administrative Agent.  The agreements in this Section 11.5 shall
survive repayment of the Loans and all other amounts payable hereunder.

 

11.6.        Successors and Assigns; Participations and Assignments.  (a) 
The provisions of this Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns
permitted hereby (including any Affiliate of the Issuing Lender that issues any
Letter of Credit), except that (i) the Borrower may not assign or otherwise
transfer any of its rights or obligations hereunder without the prior written
consent of each Lender (and any attempted assignment or transfer by the
Borrower without such consent shall be null and void) and (ii) no Lender may
assign or otherwise transfer its rights or obligations hereunder except in
accordance with this Section.

 

(b)   (i)  Subject to the conditions set forth in
paragraph (b)(ii) below, any Lender may assign to one or more Eligible
Assignees (each, an “Assignee”) all or a portion of its rights and
obligations under this Agreement (including all or a portion of its Commitments
and the Loans at the time owing to it) with the prior written consent (such
consent not to be unreasonably withheld) of:

 

(A)
the Borrower, provided that no consent of the Borrower shall be required
for an assignment (i) to a Lender, an Affiliate of a Lender, an Approved
Fund or, if an Event of Default has occurred and is continuing, any other
Person or (ii) of Term Loans; and

 

(B)
the Administrative Agent, provided that no consent of the Administrative
Agent shall be required for an assignment to an Assignee that is a Lender
immediately prior to giving effect to such assignment, except in the case of an
assignment of a Revolving Commitment to an Assignee that does not already have
a Revolving Commitment.

 

(ii) Assignments shall be subject to the following additional
conditions:

 

(A) except
in the case of an assignment to a Lender, an Affiliate of a Lender or an
Approved Fund or an assignment of the entire remaining amount of the assigning
Lender’s Commitments or Loans under any Facility, the amount of the Commitments
or Loans of the assigning Lender subject to each such assignment (determined as
of the date the Assignment and Assumption with respect to such assignment is
delivered to the Administrative Agent) shall not be less than $1,000,000 unless
each of the Borrower and the Administrative Agent otherwise consent, provided
that (1) no such consent of the Borrower shall be required if an Event of
Default has

 

92

 

occurred and is continuing and (2) such amounts shall
be aggregated in respect of each Lender and its Affiliates or Approved Funds,
if any;

 

(B)
the Assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an administrative questionnaire and all appropriate tax forms required
under Section 4.10; and

 

(C) in the case of an assignment to a CLO, the
assigning Lender shall retain the sole right to approve any amendment,
modification or waiver of any provision of this Agreement and the other Loan
Documents, provided that the Assignment and Assumption between such
Lender and such CLO may provide that such Lender will not, without the consent
of such CLO, agree to any amendment, modification or waiver that (1) requires
the consent of each Lender directly affected thereby pursuant to the proviso to
the second sentence of Section 10.1 and (2) directly affects such CLO.

 

(iii) Subject to acceptance and recording thereof pursuant to
paragraph (b)(iv) below, from and after the effective date specified in
each Assignment and Assumption the Assignee thereunder shall be a party hereto
and, to the extent of the interest assigned by such Assignment and Assumption,
have the rights and obligations of a Lender under this Agreement, and the
assigning Lender thereunder shall, to the extent of the interest assigned by
such Assignment and Assumption, be released from its obligations under this
Agreement (and, in the case of an Assignment and Assumption covering all of the
assigning Lender’s rights and obligations under this Agreement, such Lender
shall cease to be a party hereto but shall continue to be entitled to the
benefits of Sections 4.9, 4.10, 4.11 and 11.5).  Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this
Section 10.6 shall be treated for purposes of this Agreement as a sale by such
Lender of a participation in such rights and obligations in accordance with
paragraph (c) of this Section.

 

(iv)  The
Administrative Agent, acting for this purpose as an agent of the Borrower,
shall maintain at one of its offices a register for the recordation of the
names and addresses of the Lenders, and the Commitments of, and principal
amount of the Loans and L/C Obligations owing to, each Lender pursuant to the
terms hereof from time to time (the “Register”).  The entries in the Register shall be
conclusive, and the Borrower, the Administrative Agent, the Issuing Lender and
the Lenders may treat each Person whose name is recorded in the Register
pursuant to the terms hereof as a Lender hereunder for all purposes of this
Agreement, notwithstanding notice to the contrary.  The Register shall be available for
inspection by the Borrower, the Issuing Lender and any Lender, at any
reasonable time and from time to time upon reasonable prior notice.

 

(v)  Upon its
receipt of a duly completed Assignment and Assumption executed by an assigning
Lender and an Assignee, the Assignee’s completed administrative questionnaire
(unless the Assignee shall already be a Lender hereunder), and any written
consent to such assignment required by paragraph (b) of this Section, the
Administrative Agent shall accept such Assignment and Assumption and record the
information

 

93

 

contained therein in the Register.  No assignment shall be effective for purposes
of this Agreement unless it has been recorded in the Register as provided in
this paragraph.

 

(c)   (i)  Any Lender may, without the consent of the
Borrower or the Administrative Agent, sell participations to one or more banks
or other entities (a “Participant”) in all or a portion of such Lender’s
rights and obligations under this Agreement (including all or a portion of its
Commitments and the Loans owing to it); provided that (A) such
Lender’s obligations under this Agreement shall remain unchanged, (B) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (C) the Borrower, the Administrative
Agent, the Issuing Lender and the other Lenders shall continue to deal solely
and directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement.  Any
agreement pursuant to which a Lender sells such a participation shall provide
that such Lender shall retain the sole right to enforce this Agreement and to
approve any amendment, modification or waiver of any provision of this
Agreement; provided that such agreement may provide that such Lender
will not, without the consent of the Participant, agree to any amendment,
modification or waiver that (1) requires the consent of each Lender directly
affected thereby pursuant to the proviso to the second sentence of Section 11.1
and (2) directly affects such Participant. 
Subject to paragraph (c)(ii) of this Section, the Borrower agrees that
each Participant shall be entitled to the benefits of Sections 4.9, 4.10 or
4.11 to the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to paragraph (b) of this Section.  To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 11.7(b) as
though it were a Lender, provided such Participant shall be subject to Section
11.7(a) as though it were a Lender.

 

(ii)  A
Participant shall not be entitled to receive any greater payment under Section
4.9 or 4.10 than the applicable Lender would have been entitled to receive with
respect to the participation sold to such Participant, unless the sale of the
participation to such Participant is made with the Borrower’s prior written
consent.  Any Participant that is a
Non-U.S. Lender shall not be entitled to the benefits of Section 4.10
unless such Participant complies with Section 4.10(e).

 

(d) 
Any Lender may at any time pledge or assign a security interest in all
or any portion of its rights under this Agreement to secure obligations of such
Lender, including any pledge or assignment to secure obligations to a Federal
Reserve Bank, and this Section shall not apply to any such pledge or assignment
of a security interest; provided that no such pledge or assignment of a
security interest shall release a Lender from any of its obligations hereunder
or substitute any such pledgee or assignee for such Lender as a party hereto.

 

(e) 
The Borrower, upon receipt of written notice from the relevant Lender,
agrees to issue Notes to any Lender requiring Notes to facilitate transactions
of the type described in paragraph (d) above.

 

(f) 
Notwithstanding the foregoing, any Conduit Lender may assign any or all
of the Loans it may have funded hereunder to its designating Lender without the
consent of the

 

94

 

Borrower or
the Administrative Agent and without regard to the limitations set forth in
Section 11.6(b).  Each of Holdings, the
Borrower, each Lender and the Administrative Agent hereby confirms that it will
not institute against a Conduit Lender or join any other Person in instituting
against a Conduit Lender any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceeding under any state bankruptcy or similar law,
for one year and one day after the payment in full of the latest maturing
commercial paper note issued by such Conduit Lender; provided, however,
that each Lender designating any Conduit Lender hereby agrees to indemnify,
save and hold harmless each other party hereto for any loss, cost, damage or
expense arising out of its inability to institute such a proceeding against
such Conduit Lender during such period of forbearance.

 

11.7.        Adjustments; Set-off. 
(a)  Except to the extent that
this Agreement expressly provides for payments to be allocated to a particular
Lender or to the Lenders under a particular Facility, if any Lender (a “Benefited
Lender”) shall receive any payment of all or part of the Obligations owing
to it, or receive any collateral in respect thereof (whether voluntarily or
involuntarily, by set-off, pursuant to events or proceedings of the nature
referred to in Section 9(f), or otherwise), in a greater proportion than any
such payment to or collateral received by any other Lender, if any, in respect
of the Obligations owing to such other Lender, such Benefited Lender shall
purchase for cash from the other Lenders a participating interest in such
portion of the Obligations owing to each such other Lender, or shall provide
such other Lenders with the benefits of any such collateral, as shall be
necessary to cause such Benefited Lender to share the excess payment or
benefits of such collateral ratably with each of the Lenders; provided,
however, that if all or any portion of such excess payment or benefits is thereafter
recovered from such Benefited Lender, such purchase shall be rescinded, and the
purchase price and benefits returned, to the extent of such recovery, but
without interest.

 

(b)   Upon the occurrence and during the
continuance of any Event of Default, in addition to any rights and remedies of
the Lenders provided by law, each Lender shall have the right, without prior
notice to Holdings or the Borrower, any such notice being expressly waived by
Holdings and the Borrower to the extent permitted by applicable law, upon any
amount becoming due and payable by Holdings or the Borrower hereunder (whether
at the stated maturity, by acceleration or otherwise), to set off and
appropriate and apply against such amount any and all deposits (general or
special, time or demand, provisional or final, other than payroll accounts, tax
withholding accounts and trust accounts), in any currency, and any other
credits, indebtedness or claims, in any currency, in each case whether direct
or indirect, absolute or contingent, matured or unmatured, at any time held or
owing by such Lender or any branch or agency thereof to or for the credit or
the account of Holdings or the Borrower, as the case may be.  Each Lender agrees promptly to notify the
Borrower and the Administrative Agent after any such setoff and application
made by such Lender, provided that the failure to give such notice shall
not affect the validity of such setoff and application.

 

11.8.        Counterparts. 
This Agreement may be executed by one or more of the parties to this
Agreement on any number of separate counterparts, and all of said counterparts
taken together shall be deemed to constitute one and the same instrument.  Delivery of an executed signature page of
this Agreement by facsimile transmission shall be effective as

 

95

 

delivery of a manually executed counterpart hereof.  A set of the copies of this Agreement signed
by all the parties shall be lodged with the Borrower and the Administrative
Agent.

 

11.9.        Severability.  Any
provision of this Agreement that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

 

11.10.      Integration.  This
Agreement and the other Loan Documents represent the entire agreement of Holdings,
the Borrower, the Agents and the Lenders with respect to the subject matter
hereof and thereof, and there are no promises, undertakings, representations or
warranties by any Agent or any Lender relative to subject matter hereof not
expressly set forth or referred to herein or in the other Loan Documents.

 

11.11.      GOVERNING LAW.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

11.12.      Submission To Jurisdiction; Waivers.  Each of Holdings and the Borrower 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 the
courts of the State of New York, the courts of the United States for the
Southern District of New York, and appellate courts from any thereof;

 

(b)   consents that any such action or proceeding
may be brought in such courts and waives any 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
Holdings or the Borrower, as the case may be at its address set forth in
Section 11.2 or at such other address of which the Administrative 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.

 

96

 

11.13.      Acknowledgments. 
Each of Holdings and the Borrower 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)   no Agent or Lender has any fiduciary
relationship with or duty to Holdings or the Borrower arising out of or in
connection with this Agreement or any of the other Loan Documents, and the
relationship between the Agents and Lenders, on the one hand, and Holdings and
the Borrower, 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 Holdings, the Borrower and the
Lenders.

 

11.14.      Releases of Guarantees and Liens.  (a) 
Notwithstanding anything to the contrary contained herein or in any
other Loan Document, the Administrative Agent is hereby irrevocably authorized
by each Lender (without requirement of notice to or consent of any Lender
except as expressly required by Section 11.1) to take any action requested by
the Borrower having the effect of releasing any Collateral or guarantee
obligations (i) to the extent necessary to permit consummation of any
transaction not prohibited by any Loan Document or that has been consented to
in accordance with Section 11.1 or (ii) under the circumstances described in
paragraph (b) below.

 

(b)   At such time as the Loans, the Reimbursement
Obligations and the other obligations under the Loan Documents (other than obligations
under or in respect of Hedge Agreements) shall have been paid in full, the
Commitments have been terminated and no Letters of Credit shall be outstanding,
the Collateral shall be released from the Liens created by the Security
Documents, and the Security Documents and all obligations (other than those
expressly stated to survive such termination) of the Administrative Agent and
each Loan Party under the Security Documents shall terminate, all without
delivery of any instrument or performance of any act by any Person.

 

11.15.      Confidentiality. 
Each Agent and each Lender agrees to keep confidential all non-public
information provided to it by any Loan Party or the Sponsor pursuant to this
Agreement that is designated by such Loan Party as confidential; provided
that nothing herein shall prevent any Agent or any Lender from disclosing any
such information (a) to any Agent, any other Lender or any Affiliate of any of
them, (b) subject to an agreement to comply with the provisions of this
Section, to any actual or prospective Transferee or any direct or indirect
counterparty to any Hedge Agreement (or any professional advisor to such
counterparty), (c) to its employees, directors, agents, attorneys, accountants
and other professional advisors or those of any of its Affiliates, (d) upon the
request or demand of any Governmental Authority, (e) in response to any order
of any court or other Governmental Authority or as may otherwise be required
pursuant to any Requirement of Law, (f) if requested or required to do so in
connection with any litigation or similar proceeding, (g) that has been
publicly disclosed (except pursuant to

 

97

 

a breach of the confidentiality obligations of this Section 11.15), (h)
to the National Association of Insurance Commissioners or any similar
organization or any nationally recognized rating agency that requires access to
information about a Lender’s investment portfolio in connection with ratings
issued with respect to such Lender, or (i) in connection with the exercise of
any remedy hereunder or under any other Loan Document;  provided, unless specifically
prohibited by applicable law or court order, each Lender shall make reasonable
efforts to notify the Borrower of any request by any Governmental Authority or
representative thereof (other than any such request in connection with any
examination of the financial condition or other routine examination of such
Lender by such Governmental Authority) for disclosure of any such non-public
information prior to disclosure of such information.

 

11.16.      WAIVERS OF JURY TRIAL.  HOLDINGS, THE BORROWER, THE AGENTS AND THE
LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL
ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND
FOR ANY COUNTERCLAIM THEREIN.

 

11.17.      Delivery of Addenda. 
Each initial Lender shall become a party to this Agreement by delivering
to the Administrative Agent an Addendum duly executed by such Lender.

 

11.18.      Subordination of Intercompany Indebtedness Each of the
Borrower and Holdings agrees that it will not become obligated or otherwise
liable for any intercompany Indebtedness that is owed to any Subsidiary, unless
such Subsidiary agrees that (a) such Indebtedness is completely subordinated to
the Obligations and subject in rights of payment to the prior payment in full
of the Obligations (other than contingent indemnity obligations for which no
claim has been made), (b) if an Event of Default has occurred and is continuing,
no payment on any such Indebtedness shall be made until the payment in full of
the Obligations, and (c) such Indebtedness shall be evidenced by a Subordinated
Intercompany Note, which note, if evidencing obligations owed to a Loan Party,
shall be pledged as Collateral to the Administrative Agent.

 

11.19.      USA PATRIOT Act. 
Each Lender hereby notifies the Borrower that pursuant to the
requirements of the USA PATRIOT Act (Title III of Publ. L. 107-56 (signed into
law October 26, 2001)), (the “Patriot Act”), and the Lenders’ policies
and practices, it is required to obtain, verify and record information that
identifies the Borrower, which information includes the name and address of the
Borrower and other information that will allow such Lender to identify the
Borrower in accordance with the Patriot Act.

 

11.20.      Amendment and Restatement. 
It is the intention of each of the parties hereto that the Original
Credit Agreement be amended and restated in its entirety pursuant to this
Agreement so as to preserve the perfection and priority of all security
interests securing indebtedness and obligations under the Original Credit
Agreement and that all Indebtedness and Obligations of the Borrower and the
Guarantors hereunder shall be secured by the liens evidenced under the Loan
Documents and that this Agreement does not constitute a novation or

 

98

 

termination of the obligations and liabilities existing under the
Original Credit Agreement (or serve to terminate Sections 4.11, 10.7 and 11.5
of the Original Credit Agreement or any of Borrower’s obligations thereunder
with respect to the Existing Lenders or the Continuing Lenders).  This Agreement restates and replaces, in its
entirety, the Original Credit Agreement; any reference in any of the other Loan
Documents to the Original Credit Agreement shall mean this Agreement.

 

99

 

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

 

	
   

  	
  PROTECTION
  ONE, INC.,

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ J. Eric Griffin

  
	
   

  	
   

  	
  Name: 
  J. Eric Griffin

  
	
   

  	
   

  	
  Title:   
  General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PROTECTION
  ONE ALARM MONITORING,

  INC.,

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Eric Griffin

  
	
   

  	
   

  	
  Name: 
  Eric Griffin

  
	
   

  	
   

  	
  Title:   
  General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BEAR, STEARNS & CO. INC., as Lead
  Arranger

  
	
   

  	
  and Initial Lead Arranger

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard Bram Smith

  
	
   

  	
   

  	
  Name: Richard Bram Smith

  
	
   

  	
   

  	
  Title: Senior MD

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LEHMAN BROTHERS INC., as Initial Lead

  Arranger

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ritam Bhalla

  
	
   

  	
   

  	
  Name: Ritam Bhalla

  
	
   

  	
   

  	
  Title: Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BEAR STEARNS CORPORATE LENDING INC.,

  as Administrative Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Victor Bulzacchelli

  
	
   

  	
   

  	
  Name: Victor Bulzacchelli

  
	
   

  	
   

  	
  Title: VP

  
				

 

 

	
   

  	
  LEHMAN COMMERCIAL PAPER INC., as Initial

  Syndication Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ritam Bhalla

  
	
   

  	
   

  	
  Name: Ritam Bhalla

  
	
   

  	
   

  	
  Title: Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LASALLE BANK NATIONAL ASSOCIATION,

  as Syndication Agent, Co-Documentation Agent

  and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark Melendes

  
	
   

  	
   

  	
  Name: Mark Melendes

  
	
   

  	
   

  	
  Title: First VP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HARRIS NESBITT FINANCING, INC.,

  as Co-Documentation Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael Silverman

  
	
   

  	
   

  	
  Name: Michael Silverman

  
	
   

  	
   

  	
  Title: MD

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  U.S. BANK NATIONAL ASSOCIATION,

  as Co-Documentation Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark Weite Kamp

  
	
   

  	
   

  	
  Name: Mark Weite Kamp

  
	
   

  	
   

  	
  Title: VP

  
				

 

 

Annex A

 

PRICING GRID FOR REVOLVING LOANS AND SWINGLINE LOANS

 

	
  Pricing

  Level

  	
   

  	
  Applicable Margin

  for Eurodollar Loans

  	
   

  	
  Applicable Margin for Base

  Rate Loans

  	
   

  
	
  I

  	
   

  	
   

  	
  3.25

  	
  %

  	
  2.25

  	
  %

  
	
  II

  	
   

  	
   

  	
  3.00

  	
  %

  	
  2.00

  	
  %

  
	
  III

  	
   

  	
   

  	
  2.75

  	
  %

  	
  1.75

  	
  %

  
	
  IV

  	
   

  	
   

  	
  2.50

  	
  %

  	
  1.50

  	
  %

  
	
  V

  	
   

  	
   

  	
  2.25

  	
  %

  	
  1.25

  	
  %

  

 

The Applicable
Margin for Revolving Loans and Swingline Loans shall be adjusted, on and after
the first Adjustment Date (as defined below) occurring after the completion of
two full fiscal quarters of the Borrower after the Closing Date, based on
changes in the Consolidated Leverage Ratio, with such adjustments to become
effective on the date (the “Adjustment Date”) that is three Business
Days after the date on which the relevant financial statements are delivered to
the Lenders pursuant to Section 7.1 and to remain in effect until the next
adjustment to be effected pursuant to this paragraph.  If any financial statements referred to above
are not delivered within the time periods specified in Section 7.1, then, until
the date that is three Business Days after the date on which such financial
statements are delivered, the highest rate set forth in each column of the
Pricing Grid shall apply.  On each
Adjustment Date, the Applicable Margin for Revolving Loans and Swingline Loans
shall be adjusted to be equal to the Applicable Margins opposite the Pricing
Level determined to exist on such Adjustment Date from the financial statements
relating to such Adjustment Date.

 

As used herein, the following rules shall
govern the determination of Pricing Levels on each Adjustment Date:

 

“Pricing Level I”  shall exist on an Adjustment Date if the
Consolidated Leverage Ratio for the relevant period is greater than or equal to
3.50 to 1.00.

 

“Pricing Level II”  shall exist on an Adjustment Date if the
Consolidated Leverage Ratio for the relevant period is less than 3.50 to 1.00
but greater than or equal to 3.00 to 1.00.

 

“Pricing Level III”  shall exist on an Adjustment Date if the
Consolidated Leverage Ratio for the relevant period is less than 3.00 to 1.00
but greater than or equal to 2.50 to 1.00.

 

“Pricing Level IV”  shall exist on an Adjustment Date if the
Consolidated Leverage Ratio for the relevant period is less than 2.50 to 1.00
but greater than or equal to 2.00 to 1.00.

 

 

“Pricing Level V”  shall exist on an Adjustment Date if the
Consolidated Leverage Ratio for the relevant period is less than 2.00 to 1.00.

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