Document:

Exhibit
10.12

 

 

U.S.
$80,000,000

 

 

CREDIT
AGREEMENT

 

Dated
as of December  22,
2003

 

 

AMONG

 

 

DECRANE
AIRCRAFT HOLDINGS, INC.,

 

as
Borrower,

 

THE
LENDERS LISTED HEREIN,

 

as
Lenders,

 

CREDIT
SUISSE FIRST BOSTON,

 

Acting
through its Cayman Islands Branch,

 

 

as
Syndication Agent,

 

and

 

as
Administrative Agent,

 

 

SOLE
LEAD ARRANGER AND BOOK RUNNER:

 

CREDIT
SUISSE FIRST BOSTON,

 

Acting
through its Cayman Islands Branch

 

 

DECRANE
AIRCRAFT HOLDINGS, INC.

CREDIT AGREEMENT

 

TABLE
OF CONTENTS

 

	
  Section 1.

  	
  DEFINITIONS

  	
   

  
	
   

  	
  1.1

  	
  Defined Terms.

  	
   

  
	
   

  	
  1.2

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

  	
   

  
	
   

  	
  1.3

  	
  Other Definitional
  Provisions and Rules of Construction.

  	
   

  
	
  Section 2.

  	
  AMOUNTS AND TERMS OF
  COMMITMENTS AND LOANS

  	
   

  
	
   

  	
  2.1

  	
  Commitments; Making of
  Loans; Notes.

  	
   

  
	
   

  	
  2.2

  	
  Interest on the Loans.

  	
   

  
	
   

  	
  2.3

  	
  Fees.

  	
   

  
	
   

  	
  2.4

  	
  Repayments, Prepayments and Reductions in
  Loan Commitments; General Provisions Regarding Payments.

  	
   

  
	
   

  	
  2.5

  	
  Use of Proceeds.

  	
   

  
	
   

  	
  2.6

  	
  Special Provisions Governing
  Eurodollar Rate Loans.

  	
   

  
	
   

  	
  2.7

  	
  Increased Costs; Taxes; Capital
  Adequacy.

  	
   

  
	
   

  	
  2.8

  	
  Obligation of Lenders to
  Mitigate; Replacement of Lender.

  	
   

  
	
  Section 3.

  	
  CONDITIONS TO LOANS

  	
   

  
	
   

  	
  3.1

  	
  Loan Party Documents.

  	
   

  
	
   

  	
  3.2

  	
  Use of Proceeds.

  	
   

  
	
   

  	
  3.3

  	
  Related Agreements.

  	
   

  
	
   

  	
  3.4

  	
  No Material Adverse Change.

  	
   

  
	
   

  	
  3.5

  	
  Lien Searches.

  	
   

  
	
   

  	
  3.6

  	
  Solvency Certificate.

  	
   

  
	
   

  	
  3.7

  	
  Representations and
  Warranties.

  	
   

  
	
   

  	
  3.8

  	
  Necessary
  Governmental Authorizations and Consents.

  	
   

  
	
   

  	
  3.9

  	
  Financial Statements.

  	
   

  
	
   

  	
  3.10

  	
  Fees.

  	
   

  
	
   

  	
  3.11

  	
  Completion of Proceedings.

  	
   

  
	
   

  	
  3.12

  	
  Security
  Interests in Personal and Mixed Property.

  	
   

  
	
   

  	
  3.13

  	
  Notice of Borrowing.

  	
   

  
	
   

  	
  3.14

  	
  As of the Closing Date:

  	
   

  
	
  Section 4.

  	
  REPRESENTATIONS AND WARRANTIES

  	
   

  
	
   

  	
  4.1

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

  	
   

  
	
   

  	
  4.2

  	
  Authorization of Borrowing, etc.

  	
   

  
	
   

  	
  4.3

  	
  Financial Condition.

  	
   

  
	
   

  	
  4.4

  	
  No Material Adverse Change; No
  Restricted Junior Payments.

  	
   

  
	
   

  	
  4.5

  	
  Title to Properties; Liens;
  Real Property.

  	
   

  
	
   

  	
  4.6

  	
  Litigation; Adverse Facts.

  	
   

  
	
   

  	
  4.7

  	
  Payment of Taxes.

  	
   

  
	
   

  	
  4.8

  	
  Governmental Regulation.

  	
   

  
	
   

  	
  4.9

  	
  Securities Activities.

  	
   

  
	
   

  	
  4.10

  	
  Employee Benefit Plans.

  	
   

  
	
   

  	
  4.11

  	
  Environmental Protection.

  	
   

  

 

i

 

	
   

  	
  4.12

  	
  Employee Matters.

  	
   

  
	
   

  	
  4.13

  	
  Solvency.

  	
   

  
	
   

  	
  4.14

  	
  Matters Relating to
  Collateral.

  	
   

  
	
   

  	
  4.15

  	
  Disclosure.

  	
   

  
	
  Section 5.

  	
  AFFIRMATIVE COVENANTS

  	
   

  
	
   

  	
  5.1

  	
  Financial
  Statements and Other Reports.

  	
   

  
	
   

  	
  5.2

  	
  Legal Existence, etc.

  	
   

  
	
   

  	
  5.3

  	
  Payment of Taxes and
  Claims; Tax Consolidation.

  	
   

  
	
   

  	
  5.4

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

  	
   

  
	
   

  	
  5.5

  	
  Inspection Rights.

  	
   

  
	
   

  	
  5.6

  	
  Compliance with Laws, etc.

  	
   

  
	
   

  	
  5.7

  	
  Execution
  of Subsidiary Guaranty and Personal Property Collateral Documents by Certain
  Subsidiaries and Future Subsidiaries; IP Collateral.

  	
   

  
	
   

  	
  5.8

  	
  Future
  Leased Property and Future Acquisitions of Real Property; Future Acquisition
  of Other Property.

  	
   

  
	
   

  	
  5.9

  	
  PTO and CO Cover Sheets, Etc.

  	
   

  
	
   

  	
  5.10

  	
  Mortgages.

  	
   

  
	
  Section 6.

  	
  NEGATIVE
  COVENANTS

  	
   

  
	
   

  	
  6.1

  	
  Indebtedness.

  	
   

  
	
   

  	
  6.2

  	
  Liens and Related Matters.

  	
   

  
	
   

  	
  6.3

  	
  Investments.

  	
   

  
	
   

  	
  6.4

  	
  Contingent Obligations.

  	
   

  
	
   

  	
  6.5

  	
  Restricted Junior Payments.

  	
   

  
	
   

  	
  6.6

  	
  Financial Covenants.

  	
   

  
	
   

  	
  6.7

  	
  Restriction
  on Fundamental Changes; Asset Sales and Acquisitions.

  	
   

  
	
   

  	
  6.8

  	
  Consolidated Capital
  Expenditures.

  	
   

  
	
   

  	
  6.9

  	
  Fiscal Year.

  	
   

  
	
   

  	
  6.10

  	
  Sales and Lease-Backs.

  	
   

  
	
   

  	
  6.11

  	
  Sale or Discount of
  Receivables.

  	
   

  
	
   

  	
  6.12

  	
  Transactions
  with Stockholders and Affiliates.

  	
   

  
	
   

  	
  6.13

  	
  Issuance of Subsidiary Equity.

  	
   

  
	
   

  	
  6.14

  	
  Conduct of Business.

  	
   

  
	
   

  	
  6.15

  	
  Amendments of Documents
  Relating to Indebtedness.

  	
   

  
	
  Section 7.

  	
  EVENTS OF
  DEFAULT

  	
   

  
	
   

  	
  7.1

  	
  Failure to Make Payments
  When Due.

  	
   

  
	
   

  	
  7.2

  	
  Default in Other
  Agreements.

  	
   

  
	
   

  	
  7.3

  	
  Breach of Certain
  Covenants.

  	
   

  
	
   

  	
  7.4

  	
  Breach of Warranty.

  	
   

  
	
   

  	
  7.5

  	
  Other Defaults
  Under Loan Documents.

  	
   

  
	
   

  	
  7.6

  	
  Involuntary
  Bankruptcy; Appointment of Receiver, etc.

  	
   

  
	
   

  	
  7.7

  	
  Voluntary
  Bankruptcy; Appointment of Receiver, etc.

  	
   

  
	
   

  	
  7.8

  	
  Judgments and Attachments.

  	
   

  
	
   

  	
  7.9

  	
  Dissolution.

  	
   

  
	
   

  	
  7.10

  	
  Employee Benefit Plans.

  	
   

  
	
   

  	
  7.11

  	
  Invalidity of Guaranties;
  Failure of Security; Repudiation of Obligations.

  	
   

  
	
  Section 8.

  	
  THE AGENTS

  	
   

  
	
   

  	
  8.1

  	
  Appointment.

  	
   

  
	
   

  	
  8.2

  	
  Powers and Duties;
  General Immunity.

  	
   

  
	
   

  	
  8.3

  	
  Successor Agents.

  	
   

  
	
   

  	
  8.4

  	
  Collateral Documents.

  	
   

  

 

ii

 

	
   

  	
  8.5

  	
  Non-Reliance on Agents and Other Lenders.

  	
   

  
	
  Section 9.

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
  9.1

  	
  Assignments
  and Participations in Loans.

  	
   

  
	
   

  	
  9.2

  	
  Expenses.

  	
   

  
	
   

  	
  9.3

  	
  Indemnity.

  	
   

  
	
   

  	
  9.4

  	
  Set-Off;
  Security Interest in Deposit Accounts.

  	
   

  
	
   

  	
  9.5

  	
  Ratable Sharing.

  	
   

  
	
   

  	
  9.6

  	
  Amendments and Waivers.

  	
   

  
	
   

  	
  9.7

  	
  Independence of Covenants.

  	
   

  
	
   

  	
  9.8

  	
  Notices.

  	
   

  
	
   

  	
  9.9

  	
  Survival of
  Representations, Warranties and Agreements.

  	
   

  
	
   

  	
  9.10

  	
  Failure or Indulgence Not
  Waiver; Remedies Cumulative.

  	
   

  
	
   

  	
  9.11

  	
  Marshalling; Payments Set Aside.

  	
   

  
	
   

  	
  9.12

  	
  Severability.

  	
   

  
	
   

  	
  9.13

  	
  Obligations
  Several; Independent Nature of Lenders’ Rights.

  	
   

  
	
   

  	
  9.14

  	
  Headings.

  	
   

  
	
   

  	
  9.15

  	
  APPLICABLE LAW.

  	
   

  
	
   

  	
  9.16

  	
  Successors and Assigns.

  	
   

  
	
   

  	
  9.17

  	
  Consent
  to Jurisdiction and Service of Process.

  	
   

  
	
   

  	
  9.18

  	
  Waiver of Jury Trial.

  	
   

  
	
   

  	
  9.19

  	
  Confidentiality.

  	
   

  
	
   

  	
  9.20

  	
  Counterparts;
  Effectiveness.

  	
   

  
	
   

  	
  9.21

  	
  Maximum Amount.

  	
   

  

 

iii

 

DECRANE AIRCRAFT HOLDINGS, INC. 

CREDIT AGREEMENT

 

This CREDIT AGREEMENT is dated as of December 22, 2003, and entered into by and
among DECRANE AIRCRAFT HOLDINGS, INC.,
a Delaware corporation (“Company”),
THE LENDERS LISTED ON SCHEDULE I
ATTACHED HERETO (each individually referred to herein as a “Lender” and collectively as “Lenders”), and CREDIT SUISSE FIRST BOSTON, acting through its Cayman Islands
Branch (“CSFB”), as administrative
agent for Lenders (in such capacity, “Administrative
Agent”), and as syndication agent for Lenders (in such capacity, “Syndication Agent”).

 

R E C I T A L S

 

WHEREAS,
Company has requested that Lenders make the Loans referenced herein and has
agreed to secure all of the Obligations hereunder and under the other Loan
Documents by granting to Administrative Agent, on behalf of Lenders, a Lien on
substantially all of its personal property and its real property, including a
pledge of all of the capital stock of its Domestic Subsidiaries and a pledge of
65% of the capital stock of its Foreign Subsidiaries that are owned by Company
or a Domestic Subsidiary; and

 

WHEREAS,
Parent has agreed to guarantee the Obligations hereunder and under the other
Loan Documents and secure its guaranty by granting to Administrative Agent, on
behalf of Lenders, a Lien on and a pledge of all of the capital stock of
Company;

 

WHEREAS,
each of Company’s Domestic Subsidiaries has agreed to guarantee the Obligations
hereunder and under the other Loan Documents and secure its guaranty by
granting to Administrative Agent, on behalf of Lenders, a Lien on substantially
all of its personal property and real property, including a pledge of all of
the capital stock of each of its Domestic Subsidiaries and 65% of the capital
stock of each of its direct Foreign Subsidiaries;

 

NOW, THEREFORE, in
consideration of the premises and the agreements, provisions and covenants
herein contained, Company, Lenders, Syndication Agent and Administrative Agent
agree as follows:

 

Section 1.                                          DEFINITIONS

 

1.1                               Defined Terms.

 

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

 

“Accreted Amount” has the meaning assigned
to that term in subsection 2.2A.

 

“Acquired Controlled Person” means any Person (i) in which Company or any
of its Subsidiaries has made an Investment permitted under subsection 6.3(vii)
and (ii) as to which Company or such Subsidiary exercises control.  For purposes hereof, “control” means the
power to appoint a majority of the board of directors (or other equivalent
governing body) of such Person or to otherwise direct or cause the direction of
the management or policies of such Person, whether by contractual arrangement
or otherwise.

 

1

 

“Adjusted Eurodollar Rate” means, with respect to a Eurodollar Rate
Loan for the relevant Interest Period, the sum of (i) the quotient of (a) the
Eurodollar Base Rate applicable to such Interest Period, divided by (b) one
minus the Reserve Requirement (expressed as a decimal) applicable to such
Interest Period.  The Eurodollar Rate
shall be rounded to the next higher multiple of 1/100 of 1% if the rate is not
such a multiple.

 

“Administrative Agent” has the meaning assigned to that term in the
introduction to this Agreement and also means and includes any successor
Administrative Agent appointed pursuant to subsection 8.3A.

 

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

 

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

 

“Affiliate”, as applied to any Person, means any other
Person directly or indirectly controlling, controlled by, or under common
control with, that Person. For the purposes of this definition, “control”
(including, with correlative meanings, the terms “controlling”, “controlled by”
and “under common control with”), as applied to any Person, means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of that Person, whether through the
ownership of voting securities or by contract or otherwise.

 

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

 

“Agents” means, collectively, Syndication Agent and
Administrative Agent.

 

“Agreement” means this Credit Agreement dated as of
December 22, 2003, as it may be
amended, restated, supplemented or otherwise modified from time to time.

 

“Arranger” means CSFB, as sole lead arranger and as
book runner of the credit facilities described herein.

 

“Asset Sale” means the sale, lease, assignment or other
transfer (whether voluntary or involuntary) for value (collectively, a
“transfer”) by Company or any of its Subsidiaries to any Person other than
Company or any of its Wholly-Owned Subsidiaries of (i) any of the equity
ownership of any of Company’s Subsidiaries, (ii) substantially all of the
assets of any division or line of business of Company or any of its
Subsidiaries, or (iii) any other assets (whether tangible or intangible) of
Company or any of its Subsidiaries (other than (a) inventory and obsolete or
worn out equipment sold in the ordinary course of business, (b) Cash
Equivalents, and (c) any such other assets to the extent that the aggregate
value of such assets transferred in any single transaction or related series of
transactions is equal to $250,000 or less).

 

“Assignment Agreement” means an Assignment Agreement in
substantially the form of Exhibit I annexed hereto.

 

“Assumed Indebtedness”  means Indebtedness of a Person which (i) is
in existence at the time such Person becomes a Subsidiary of Company, or (ii)
is assumed in connection with an Investment in or acquisition of such Person, and
has not been incurred or created by such Person in connection with, or in
anticipation or contemplation of, such Person becoming a Subsidiary of Company.

 

2

 

“Authorized Officer” means, relative to any Loan Party, its chief
executive officer, president, treasurer, chief financial officer or chief
accounting officer and any of its other officers whose signatures and
incumbency shall have been certified to Administrative Agent and Lenders.

 

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

 

“Base Rate” means, for any day, a rate of interest per
annum equal to the higher of (i) the Prime Rate for such day and (ii) the sum
of the Federal Funds Effective Rate for such day plus 1⁄2% per annum.

 

“Base Rate Loans” means Floating Rate Loans bearing interest
at rates determined by reference to the Base Rate as provided herein.

 

“Business Day” means (i) with respect to any borrowing,
payment or rate selection of Eurodollar Base Rate, a day (other than a Saturday
or Sunday) on which banks generally are open in New York and Los Angeles for
the conduct of substantially all of their commercial lending activities and on
which dealings in United States dollars are carried on in the London interbank
market and (ii) for all other purposes, a day (other than a Saturday or Sunday)
on which banks generally are open in New York and Los Angeles for the conduct
of substantially all of their commercial lending activities.

 

“Capital Lease”, as applied to any Person, means any lease of
any property (whether real, personal or mixed) by that Person as lessee that,
in conformity with GAAP, is accounted for as a capital lease on the balance
sheet of that Person and the stated maturity thereof shall be the date of the
last payment of rent or any other amount due under such lease prior to the
first date upon which such lease may be terminated by the lessee without
payment of a penalty.

 

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

 

“Cash Equivalents” means, as at any date of
determination, (i) marketable securities (a) issued or directly and
unconditionally guaranteed as to interest and principal by the United States
Government or (b) issued by any agency of the United States the obligations of
which are backed by the full faith and credit of the United States, in each
case maturing within one year after such date; (ii) marketable direct
obligations issued by any state of the United States of America or any
political subdivision of any such state or any public instrumentality thereof,
in each case maturing within one year after such date and having, at the time
of the acquisition thereof, the highest rating obtainable from either Standard
& Poor’s Ratings Group (“S&P”) or Moody’s Investors
Service, Inc. (“Moody’s”); (iii) commercial paper
maturing no more than 270 days from the date of creation thereof and having, at
the time of the acquisition thereof, a rating of at least A-1 from S&P or
at least P-1 from Moody’s; (iv) certificates of deposit or bankers’ acceptances
maturing within one year after such date and issued or accepted by any Lender
or by any commercial bank (including a U.S. branch of a foreign bank) that is a
member of the Federal Reserve and has a combined capital and surplus and
undivided profits of at least $500,000,000); (v) repurchase agreements which
(a) are entered into with any entity referred to in clauses (iii) or (iv) above
or any other financial institution whose unsecured long-term debt (or the
unsecured long-term debt of whose holding company) is rated at least A- or
better by S&P or A3 or better by Moody’s and maturing not more than one
year after such time; and (b) are secured by a fully perfected security interest
in securities of a type referred to in clauses (i) or (ii) above and which have
a market value at the time such repurchase agreement is entered into of not
less than 100% of the repurchase obligation of such counterparty entity with
whom such repurchase agreement has been entered into; (vi) short-term tax
exempt securities that are rated not lower than MIG-1/1+ or either Moody’s or
S&P with provisions for liquidity or maturity accommodations of 183 days or
less; (vii) shares of any money market mutual fund that (a) has at least 95% of
its assets invested continuously in the types of investments referred to in

 

3

 

clauses (i) through (vi) and as to which
withdrawals are permitted at least every 90 days; and (viii) in the case of any
Subsidiary of Company organized or having its principal place of business
outside the United States, investments denominated in the currency of the
jurisdiction in which such Subsidiary is organized or has its principal place of
business which are similar to the items specified in clauses (i) through (vii)
above.

 

“Certificate re Non-Bank Status” means a
certificate substantially in the form of Exhibit II annexed hereto
delivered by a Lender to Administrative Agent pursuant to subsection 2.7B(iv).

 

“Change in Control” means (i) the failure of
Parent at any time to own, directly or indirectly, free and clear of all Liens
and encumbrances (other than Liens created under the Loan Documents, Liens
securing obligations under the First Lien Credit Agreement and obligations
under Interest Rate Agreements that constitute Hedge Agreements secured on a pari passu basis by the collateral
securing the obligations under the First Lien Credit Agreement and Liens
described in clauses (i) and (iv) of the definition of “Permitted
Encumbrances”), all right, title and interest in 100% of the capital stock of
Company, other than the Company Preferred Stock; (ii) the failure of the DLJMB
and the Affiliates of any entity included in the definition of “DLJMB” to own
at least 51% (on a fully diluted basis) of the economic and voting interest in
the voting stock of Parent; (iii) the failure of DLJMB and the Affiliates of
any entity included in the definition of “DLJMB” at any time to have the right
to designate or nominate at least 51% of the Board of Directors of Parent; or
(iv) the occurrence of a “Change in Control” as defined under the First Lien
Credit Agreement or any agreement governing any Subordinated Indebtedness or
Permitted Indebtedness issued by Company or the PIK Preferred Stock or PIK
Notes issued by Parent.

 

“Change of Control Premium” shall mean the greater of (i) 1.0% of the
aggregate principal amount of the Loans being prepaid and (ii) the prepayment
premium applicable pursuant to subsection 2.4B(iv).

 

“Closing Date” means the date on or before January 15, 2004 on which the Loans
are made.

 

“Closing Date Mortgaged Property” means the owned property listed on Schedule
5.8.

 

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

 

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

 

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

 

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

 

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

 

4

 

“Company Excess Cash Flow Amount” means, at any date, the portion of
Consolidated Excess Cash Flow for each Fiscal Year ending prior to such date
not required to be applied to prepay the Loans in accordance with subsection
2.4B(ii)(d) and not required to prepay Indebtedness under the First Lien Credit
Agreement (if a First Lien Credit Agreement is then in effect).

 

“Company Preferred Stock” means the Senior Exchangeable Preferred
Stock, which accrues dividends at the rate of 16.0% per annum and matures in
2009, issued by Company.

 

“Compliance Certificate” means a certificate substantially in the
form of Exhibit III annexed hereto delivered to Agents and Lenders by
Company pursuant to subsection 5.1(iii).

 

“Consolidated Capital Expenditures” means, for any period, the sum of the
aggregate of all expenditures (whether paid in cash or other consideration or
accrued as a liability and including that portion of Capital Leases which is
capitalized on the consolidated balance sheet of Company and its Subsidiaries)
by Company and its Subsidiaries during that period that, in conformity with
GAAP, are included in “additions to property, plant or equipment” or comparable
items reflected in the consolidated statement of cash flows of Company and its
Subsidiaries; provided that Consolidated Capital Expenditures shall not
include any such expenditures (x) made from the proceeds of (i) Net
Insurance/Condemnation Proceeds as permitted under subsection 6.7(vii); (ii)
proceeds from Asset Sales permitted pursuant to subsection 6.7(ix); or (iii)
proceeds from asset dispositions permitted by subsection 6.7(iii), or
dispositions of assets excluded from the definition of Asset Sales pursuant to
clause (c) of the definition of “Asset Sale”; or (y) that constitute an
Investment made under subsection 6.3 (other than subsection 6.3(vi)).

 

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

 

“Consolidated Current Liabilities” means, as at any date of determination, the
total liabilities of Company and its Subsidiaries on a consolidated basis which
may properly be classified as current liabilities in conformity with GAAP,
excluding the current portion of any Indebtedness that by its terms or by the
terms of any instrument or agreement relating thereto matures more than one
year from, or is renewable or extendable at the option of Company or a
Subsidiary from, the date of creation thereof.

 

“Consolidated EBITDA” means, for any period, subject to subsection
1.2(b), the sum (without duplication) of the amounts for such period of (i)
Consolidated Net Income, (ii) any amount deducted on account of minority
interests in determining Consolidated Net Income, (iii) Consolidated Interest
Expense, (iv) any non-capitalized transaction costs incurred in connection with
actual or proposed financings, acquisitions or divestitures (including, but not
limited to, financing and refinancing fees and costs incurred in connection
with the Transaction), (v) all amounts deducted on account of income taxes in
determining Consolidated Net Income, (vi) total depreciation expense, (vii)
total amortization expense, (viii) the amount deducted in determining
Consolidated Net Income representing any net loss (or less any net gain)
realized in connection with any sale, lease, conveyance or other disposition of
any asset (other than in the ordinary course of business and other than from
Company or any of its Subsidiaries to Company or any of its Subsidiaries), (ix)
the amount deducted in determining Consolidated Net Income representing any
extraordinary or non-recurring loss, (x) foreign currency translation and
transaction losses (or minus foreign currency translation and transaction
gains) and (xi) any other non-cash items reducing Consolidated Net Income less (a) other items increasing
Consolidated Net Income constituting extraordinary gains and (b) Restricted
Junior Payments of the type referred to in clause (iii)(x) of subsection 6.5
made during such period, all of the foregoing as determined on a consolidated
basis for Company and its Subsidiaries in conformity with GAAP.

 

5

 

“Consolidated Excess Cash Flow” means, for any period, an amount (if
positive) equal to (i) the sum, without duplication, of the amounts for such
period of (a) Consolidated EBITDA and (b) the Consolidated Working Capital
Adjustment minus (ii) the sum,
without duplication, of the amounts for such period of (a) mandatory repayments
of the Loans and scheduled, mandatory and optional repayments of other Consolidated
Total Debt (excluding repayments of loans except to the extent the related
commitments are permanently reduced in connection with such repayments) in each
case to the extent actually made during such period, (b) Consolidated Capital
Expenditures paid in cash (without duplication, net of any proceeds of any
related financings with respect to such expenditures), (c) Consolidated
Interest Expense paid in cash, (d) the amount of taxes based on income of
Company and its Subsidiaries paid or payable in cash during such period, (e)
the amount paid for Permitted Acquisitions permitted and actually made under
subsection 6.7(vi) and Investments permitted and actually made under subsection
6.3(xii) but only to extent paid in cash from Company’s or its Subsidiaries’
cash balances, (f) any payments with respect to Earn-Outs actually paid during
such period, (g) gains on any sale, lease, conveyance, or other disposition of
any asset (other than in the ordinary course of business), and (h) any
distributions with respect to minority interests made during such period.

 

“Consolidated Interest Coverage Ratio” means, at the end of any Fiscal Quarter,
subject to subsection 1.2(b), the ratio computed for the period consisting of
such Fiscal Quarter and each of the three immediately preceding Fiscal Quarters
of Consolidated EBITDA to the cash portion of Consolidated Interest Expense
other than commitment fees to the extent included therein (net of cash interest
income).

 

“Consolidated Interest Expense” means, for any period, total interest
expense (including that portion attributable to Capital Leases in accordance
with GAAP and capitalized interest) of Company and its Subsidiaries on a
consolidated basis with respect to all outstanding Indebtedness of Company and
its Subsidiaries, including all commissions, discounts and other fees and
charges owed with respect to letters of credit and bankers’ acceptance
financing and net costs under Interest Rate Agreements determined in accordance
with GAAP, but excluding, to the extent included in such total interest
expense, up-front fees and expenses and the amortization of all deferred
financing costs.

 

 “Consolidated Leverage Ratio” means, at the end of any Fiscal Quarter,
subject to subsection 1.2(b), the ratio of (a) Consolidated Total Debt (less Cash and Cash Equivalents) as of the
last day of such Fiscal Quarter to (b) Consolidated EBITDA for the consecutive
four Fiscal Quarters ending on the last day of such Fiscal Quarter.

 

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

 

“Consolidated Total Debt” means, as at any date of determination, the
aggregate stated balance sheet amount of all Indebtedness and Contingent
Obligations with respect to letters of credit (other than letters of credit
issued in connection with trade payables) of Company and its Subsidiaries,
determined on a consolidated basis in accordance with GAAP.

 

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

 

“Consolidated Working Capital
Adjustment” means, for any period on a consolidated basis, the amount (which may
be a negative number) by which Consolidated Working Capital as of the beginning
of such period exceeds (or is less than) Consolidated Working Capital as of the
end of such period.

 

6

 

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

 

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

 

“Control Change Notice” has the meaning
assigned to that term in subsection 2.4B(iii).

 

“Control Change Payment Date” has the
meaning assigned to that term in subsection 2.4B(iii).

 

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

 

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

 

“Declaration Notice” has the meaning
assigned to that term in subsection 2.4B(iii).

 

“Default Rate Accreted Amount” has the
meaning assigned to that term in subsection 2.2E.

 

“Deposit Account” means a demand, time, savings, passbook or
like account with a bank, savings and loan association, credit union or like
organization, other than an account evidenced by a negotiable certificate of
deposit.

 

“DLJMB” means DLJ Merchant Banking Partners II,
L.P., DLJ Offshore Partners II, C.V., DLJ Diversified Partners, L.P., DLJMB
Funding II, Inc., DLJ First ESC, L.P., DLJ ESC II, L.P., UK Investment Plan
1997 Partners, DLJ Merchant Banking Partners II-A, L.P., DLJ Diversified
Partners-A, L.P., DLJ EAB Partners, L.P., DLJ Millenium Partners, L.P., DLJ
Millenium Partners-A, L.P., MBP II Plan Investors, L.P. and Global Technology
Partners, L.L.C.

 

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

 

7

 

“Domestic Subsidiary” means a Subsidiary organized under the laws
of the United States or any state or territory thereof or the District of
Columbia.

 

“Earn-outs” means any obligations by Company or any of
its Subsidiaries to pay any amounts constituting the payment of deferred
purchase price with respect to any acquisition of a business (whether through
the purchase of assets or shares of capital stock), the amount of which
payments is calculated on the basis of, or by reference to, bona fide financial
or other operating performance of such business or specified portion thereof or
any other similar arrangement.

 

“Eligible Assignee” means (A) (i) a commercial bank organized
under the laws of the United States or any state thereof; (ii) a savings and
loan association or savings bank organized under the laws of the United States
or any state thereof; (iii) a commercial bank organized under the laws of any
other country or a political subdivision thereof; provided that (x) such
bank is acting through a branch or agency located in the United States or (y)
such bank is organized under the laws of a country that is a member of the
Organization for Economic Cooperation and Development or a political
subdivision of such country; and (iv) any other entity which extends credit or
buys or invests in loans as one of its businesses including insurance
companies, mutual funds and lease financing companies; and (B) any Lender, any
Affiliate of any Lender and any Affiliated Fund of any Lender; provided
that no Affiliate of Company (other than DLJMB and its Subsidiaries and CSFB)
shall be an Eligible Assignee.

 

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

 

“Environmental Claim” means any investigation, notice, notice of
violation, claim, action, suit, proceeding, demand, abatement order or other
order or directive, by any governmental authority or any other Person, arising
(i) pursuant to or in connection with any actual or alleged violation of any
Environmental Law, (ii) in connection with any Hazardous Materials or any
actual or alleged Hazardous Materials Activity, or (iii) in connection with any
actual or alleged damage, injury, threat or harm to natural resources or the
environment.

 

“Environmental Laws” means any and all current or future
statutes, ordinances, orders, rules, regulations, judgments, Governmental Authorizations,
or any other requirements of governmental authorities relating to (i)
environmental matters, including those relating to any Hazardous Materials
Activity, (ii) the generation, use, storage, transportation or disposal of
Hazardous Materials, or (iii) the effect of the environment on human, plant or
animal health or welfare, in any manner applicable to Company or any of its
Subsidiaries or any Facility, including the Comprehensive Environmental
Response, Compensation, and Liability Act (42 U.S.C. §9601 et  seq.),
the Hazardous Materials Transportation Act (49 U.S.C. §1801 et  seq.),
the Resource Conservation and Recovery Act (42 U.S.C. §6901 et  seq.),
the Federal Water Pollution Control Act (33 U.S.C. §1251 et  seq.),
the Clean Air Act (42 U.S.C. §7401 et  seq.), the Toxic Substances
Control Act (15 U.S.C. §2601 et  seq.), the Federal Insecticide,
Fungicide and Rodenticide Act (7 U.S.C. §136 et  seq.), the Oil
Pollution Act (33 U.S.C. §2701 et  seq.) and the Emergency
Planning and Community Right-to-Know Act (42 U.S.C. §11001 et  seq.),
each as amended or supplemented, any analogous present or future state or local
statutes or laws, and any regulations promulgated pursuant to any of the
foregoing.

 

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

 

“ERISA Affiliate” means, as applied to any Person, (i) any
corporation which is a member of a controlled group of corporations within the
meaning of Section 414(b) of the Internal Revenue Code of

 

8

 

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

 

“ERISA Event” means (i) a “reportable event” within the
meaning of Section 4043 of ERISA and the regulations issued thereunder with
respect to any Pension Plan (excluding those for which the provision for 30-day
notice to the PBGC has been waived by regulation); (ii) the failure to meet the
minimum funding standard of Section 412 of the Internal Revenue Code with
respect to any Pension Plan (whether or not waived in accordance with Section
412(d) of the Internal Revenue Code) or the failure to make by its due date a required
installment under Section 412(m) of the Internal Revenue Code with respect to
any Pension Plan or the failure to make any required contribution to a
Multiemployer Plan; (iii) the provision by the administrator of any Pension
Plan pursuant to Section 4041(a)(2) of ERISA of a notice of intent to terminate
such plan in a distress termination described in Section 4041(c) of ERISA; (iv)
the withdrawal by Company, any of its Subsidiaries or any of their respective
ERISA Affiliates from any Pension Plan with two or more contributing sponsors
or the termination of any such Pension Plan resulting in liability pursuant to
Section 4063 or 4064 of ERISA; (v) the institution by the PBGC of proceedings
to terminate any Pension Plan, or the occurrence of any event or condition
which could reasonably constitute grounds under ERISA for the termination of,
or the appointment of a trustee to administer, any Pension Plan; (vi) the
imposition of liability on Company, any of its Subsidiaries or any of their
respective ERISA Affiliates pursuant to Section 4062(e) or 4069 of ERISA or by
reason of the application of Section 4212(c) of ERISA; (vii) the withdrawal of
Company, any of its Subsidiaries or any of their respective ERISA Affiliates in
a complete or partial withdrawal (within the meaning of Sections 4203 and 4205
of ERISA) from any Multiemployer Plan if there is any potential liability
therefor, or the receipt by Company, any of its Subsidiaries or any of their
respective ERISA Affiliates of notice from any Multiemployer Plan that it is in
reorganization or insolvency pursuant to Section 4241 or 4245 of ERISA, or that
it intends to terminate or has terminated under Section 4041A or 4042 of ERISA;
(viii) the occurrence of an act or omission which could reasonably give rise to
the imposition on Company, any of its Subsidiaries or any of their respective
ERISA Affiliates of fines, penalties, taxes or related charges under Chapter 43
of the Internal Revenue Code or under Section 409, Section 502(c), (i) or (l),
or Section 4071 of ERISA in respect of any Employee Benefit Plan; (ix) the
assertion of a material claim (other than routine claims for benefits) against
any Employee Benefit Plan other than a Multiemployer Plan or the assets
thereof, or against Company, any of its Subsidiaries or any of their respective
ERISA Affiliates in connection with any Employee Benefit Plan; (x) receipt from
the Internal Revenue Service of notice of the failure of any Pension Plan (or
any other Employee Benefit Plan intended to be qualified under Section 401(a)
of the Internal Revenue Code) to qualify under Section 401(a) of the Internal
Revenue Code, or the failure of any trust forming part of any Pension Plan to
qualify for exemption from taxation under Section 501(a) of the Internal
Revenue Code; or (xi) the imposition of a Lien pursuant to Section 401(a)(29)
or 412(n) of the Internal Revenue Code or pursuant to ERISA with respect to any
Pension Plan.

 

“Eurodollar Base Rate” means, with respect to a Eurodollar Rate
Loan for the relevant Interest Period, the rate per annum determined by Adminis­trative
Agent at approximately 11:00 A.M. (London time) on the date which is two (2)
Business Days prior to the beginning of the relevant Interest Period (as
specified in the Notice of Borrowing or the applicable Notice of Continuation)
by reference to the British Bankers’ Association Interest Settlement Rates for
deposits in Dollars (as set forth by any service selected

 

9

 

by Administrative Agent which has been nominated by the British
Bankers’ Association as an authorized information vendor for the purpose of
displaying such rates) for a period equal to such Interest Period.

 

“Eurodollar Rate Loans” means Floating Rate Loans bearing interest
at rates determined by reference to the Adjusted Eurodollar Rate as provided
herein.

 

“Event of Default” means each of the events set forth in
Section 7.

 

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

 

“Excluded Equity Proceeds” means any proceeds received by Parent,
Company or any of its Subsidiaries from the issuance or sale or exercise of
their respective equity Securities, in each case pursuant to any such sale or
issuance or exercise constituting or resulting from (i) capital contributions
to Company, or equity Securities issuances by Parent, Company or any of its
Subsidiaries, including without limitation, the issuance of the PIK Preferred
Stock and any such issuances as payment of accrued dividends on the PIK
Preferred Stock (excluding any such contributions or issuance resulting from a
public offering or a widely distributed private offering of common equity
exempted from the registration requirements of Section 5 of the Securities Act
of 1933, as amended (“Section 5”)
other than any such issuances resulting from or in connection with any resale
by DLJMB of the PIK Preferred Stock, or any subsequent registration thereof
under Section 5); (ii) any subscription agreements, incentive plan or similar
arrangements with any officer, employee or director of Parent, Company or any
of its Subsidiaries; (iii) any loan made by Company or any of its Subsidiaries
pursuant to subsection 6.3(x); (iv) the sale of any equity Securities of Parent
to any officer, director or employee of Parent, Company or any of their
Subsidiaries; provided such proceeds do not exceed $5,000,000 in the
aggregate; (v) the exercise of any options or warrants issued to any officer,
employee or director of Parent, Company or any of its Subsidiaries or to any
purchasers of the PIK Preferred Stock; or (vi) issuances by any Subsidiary of
Company to Company or any other Subsidiary of Company or by Company to Parent
or any Subsidiary of Company.

 

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

 

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

 

“Financial Plan” has the meaning assigned to that term in
subsection 5.1(x).

 

“First Closing Date” means August 28, 1998.

 

“First Lien Collateral Agent” means the collateral agent under the First
Lien Credit Agreement.

 

“First Lien Credit Agreement” means (i) the Third Amended and Restated
Credit Agreement, dated as of May 11, 2000, among Company, the lenders party
thereto and Credit Suisse First Boston, as

 

10

 

administrative agent and as syndication
agent, including any related notes, guarantees, collateral documents,
instruments and agreements executed in connection therewith, in each case, as
the same has been amended through the Closing Date and as the same may
hereafter be amended, restated, supplemented or otherwise modified from time to
time in accordance with the provisions of subsection 6.1(xi) and subsection 6.15, and (ii) any replacement agreements
designated by Company as a “First Lien Credit Agreement” existing at any time
to refund, refinance, replace or renew (including subsequent or successive
refinancings, replacements and renewals) any obligations under the documents
described in clause (i) above in accordance with the provisions of subsection
6.1(xi) and subsection 6.15,
including any related notes, guarantees, collateral documents, instruments and
agreements executed in connection therewith; provided that in no event
shall more than two agreements be existing in the aggregate at any one time
under clauses (i) and (ii).

 

“First Lien Leverage Ratio” means, as of any date, the ratio of (a) Net
Senior Debt minus Indebtedness under this Agreement and minus (without
duplication) any Permitted Indebtedness as of the last day of a Fiscal Quarter
to (b) Consolidated EBITDA for the consecutive four Fiscal Quarters ending on
the last day of such Fiscal Quarter.

 

“First Priority” means, with respect to any Lien purported to
be created in any Collateral pursuant to any Collateral Document, that such
Lien is a first priority Lien, subject to no Liens that rank prior to such Lien
other than (a) Permitted Encumbrances, (b) Liens securing the obligations under
the First Lien Credit Agreement and obligations under Interest Rate Agreements
that constitute Hedge Agreements secured on a pari
passu basis with obligations under the First Lien Credit Agreement,
(c) Liens permitted pursuant to subsection 6.2A(iii), (d) Liens permitted
pursuant to subsection 6.2A(iv), (e) Liens permitted pursuant to subsection
6.2A(vi) or (viii) and (f) Liens permitted under subsection 6.2 that by
operation of law rank prior to such Lien.

 

“Fiscal Quarter” means a fiscal quarter of any Fiscal Year.

 

“Fiscal Year” means the fiscal year of Company and its
Subsidiaries ending on December 31 of each calendar year.

 

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

 

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

 

“Fixed Rate Loan Lender” means any Lender who holds a Fixed Rate Loan
Commitment, or who has made a Fixed Rate Loan hereunder and any assignee of
such Lender pursuant to subsection 9.1B.

 

“Fixed Rate Loans” means the Fixed Rate Loans made by Fixed
Rate Loan Lenders to Company pursuant to subsection 2.1A.

 

“Fixed Rate Notes” means (i) the promissory notes of
Company issued pursuant to subsection 2.1D on the Closing Date and
(ii) any promissory notes issued by Company pursuant to the last sentence
of subsection 9.1B(i) in connection with assignments of the Fixed Rate Loans of
any Fixed Rate Loan Lenders, in each case substantially in the form of Exhibit V-1
annexed hereto, as they may be amended, supplemented or otherwise modified from
time to time.

 

11

 

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

 

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

 

“Floating Rate Loan Lender” means any Lender who holds a Floating Rate
Loan Commitment or who has made a Floating Rate Loan hereunder, and any
assignee of such Lender pursuant to subsection 9.1B.

 

“Floating Rate Loans” means the Floating Rate Loans made by
Floating Rate Loan Lenders to Company pursuant to subsection 2.1A.

 

“Floating Rate Notes” means (i) the promissory notes of
Company issued pursuant to subsection 2.1D on the Closing Date and
(ii) any promissory notes issued by Company pursuant to the last sentence
of subsection 9.1B(i) in connection with assignments of the Floating Rate Loans
of any Floating Rate Loan Lenders, in each case substantially in the form of Exhibit V-2
annexed hereto, as they may be amended, supplemented or otherwise modified from
time to time.

 

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

 

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

 

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

 

“Funding and Payment Office” means (i) the office of Administrative Agent
located at 11 Madison Avenue, New York, New York 10010 or (ii) such other
office of Administrative Agent as may from time to time hereafter be designated
as such in a written notice delivered by Administrative Agent to Company and
each Lender.

 

“GAAP” means, subject to the limitations on the
application thereof set forth in subsection 1.2, generally accepted accounting
principles set forth in opinions and pronouncements of the Accounting
Principles Board of the American Institute of Certified Public Accountants and
statements and pronouncements of the Financial Accounting Standards Board, in
each case as the same are applicable to the circumstances as of the date of
determination.

 

“Governmental Authorization” means any permit, license, authorization,
plan, directive, consent order or consent decree of or from any federal, state
or local governmental authority, agency or court.

 

“Guaranties” means the Parent Guaranty and the Subsidiary
Guaranty.

 

“Hazardous Materials” means (i) any chemical, material or
substance at any time defined as or included in the definition of “hazardous
substances”, “hazardous wastes”, “hazardous materials”, “extremely hazardous
waste”, “acutely hazardous waste”, “radioactive waste”, “biohazardous waste”,

 

12

 

“pollutant”, “toxic pollutant”,
“contaminant”, “restricted hazardous waste”, “infectious waste”, “toxic
substances”,  or any other term or
expression intended to define, list or classify substances by reason of
properties harmful to health, safety or the indoor or outdoor environment
(including harmful properties such as ignitability, corrosivity, reactivity,
carcinogenicity, toxicity, reproductive toxicity, “TCLP toxicity” or “EP
toxicity” or words of similar import under any applicable Environmental Laws);
(ii) any oil, petroleum, petroleum fraction or petroleum derived substance;
(iii) any drilling fluids, produced waters and other wastes associated with the
exploration, development or production of crude oil, natural gas or geothermal
resources; (iv) any flammable substances or explosives; (v) any radioactive
materials; (vi) any asbestos-containing materials; (vii) urea formaldehyde foam
insulation; (viii) electrical equipment which contains any oil or dielectric
fluid containing polychlorinated biphenyls; (ix) pesticides; and (x) any other
chemical, material or substance, exposure to which is prohibited, limited or
regulated by any governmental authority or which may or could pose a hazard to
the health and safety of the owners, occupants or any Persons at the Facilities
or to the indoor or outdoor environment.

 

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

 

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

 

“Immaterial Subsidiary” means each Subsidiary of Company that (a)
accounted for no more than 3% of the consolidated gross revenues of Company and
its Subsidiaries for the most recently completed Fiscal Quarter with respect to
which, pursuant to subsection 5.1(i) or 5.1(ii), financial statements have
been, or are required to have been, delivered by Company on or before the date
as of which any such determination is made, as reflected in such financial
statements; and (b) has assets which represent no more than 3% of the
consolidated gross assets of Company and its Subsidiaries as of the last day of
the most recently completed Fiscal Quarter with respect to which, pursuant to
subsection 5.1(i) or 5.1(ii), financial statements have been, or are required to
have been, delivered by Company on or before the date as of which any such
determination is made, as reflected in such financial statements.

 

“Impermissible Qualification” means, relative to the opinion or
certification of any independent public accountant as to any  financial statement of Company, any
qualification or exception to such opinion or certification (i) which is of a
“going concern” or similar nature, (ii) which relates to the limited scope of
examination of matters relevant to such financial statement (except, in the
case of matters relating to any acquired business or assets, in respect of the
period prior to the acquisition by Company of such business or asset), or (iii)
which relates to the treatment or classification of any item in such financial
statement and which, as a condition to its removal, would require an adjustment
to such item the effect of which would be to cause Company to be in default of
any of its obligations under subsection 6.6.

 

“Incremental Facility” 
means Permitted Indebtedness (plus any amounts paid in kind or otherwise
accreted to the original principal amount to satisfy interest obligations)
issued under this Agreement pursuant to subsection 6.1(x), which shall provide
for (x) no offers to purchase (other than offers to purchase made with respect
to all Loans) and (y) no prepayments, amortization, redemptions or repayments
except (i) on a pro rata basis with, and on the same (or later) dates as
required with respect to, the Loans made on the Closing Date or (ii) only after
the Loans made on the Closing Date have been paid in full.

 

13

 

“Indebtedness”, as applied to any Person, means (i) all
indebtedness for borrowed money, (ii) that portion of obligations with respect
to Capital Leases that is properly classified as a liability on a balance sheet
in conformity with GAAP, (iii) notes payable and drafts accepted representing
extensions of credit whether or not representing obligations for borrowed
money, (iv) any obligation owed for all or any part of the deferred purchase
price of property or services (excluding any such obligations incurred under
ERISA), which purchase price is (a) except in the case of accounts payable
arising in the ordinary course of business, due more than six months from the
date of incurrence of the obligation in respect thereof or (b) evidenced by a
note or similar written instrument (including in respect of Earn-Outs, but
solely to the extent included as liabilities in accordance with GAAP), and (v) all
obligations of the types referred to in clauses (i) through (iv) above, secured
by any Lien on any property or asset owned or held by that Person regardless of
whether the indebtedness secured thereby shall have been assumed by that Person
or is nonrecourse to the credit of that Person.  Obligations under Interest Rate Agreements and Currency
Agreements constitute (X) in the case of Hedge Agreements, Contingent
Obligations, and (Y) in all other cases, Investments, and in neither case
constitute Indebtedness.

 

“Indemnitee” has the meaning assigned to that term in
subsection 9.3.

 

“Intellectual Property” means all patents,
trademarks, tradenames, copyrights, technology, know-how and processes used in
or necessary for the conduct of the business of Company and its Subsidiaries as
currently conducted that are material to the condition (financial or
otherwise), business or operations of Company and its Subsidiaries, taken as a
whole.

 

“Intercreditor Agreement” means the
Intercreditor Agreement, dated as of the Closing Date, among Administrative
Agent, Company and the First Lien Collateral Agent, which shall be satisfactory
in form and substance to Administrative Agent, as amended, restated,
supplemented or otherwise modified from time to time.

 

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

 

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

 

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

 

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

 

“Investment” means (i) any direct or
indirect purchase or other acquisition by Company or any of its Subsidiaries
of, or of a beneficial interest in, any Securities of any other Person
(including any Subsidiary of Company), (ii) any direct or indirect redemption,
retirement, purchase or other acquisition for value, by any Subsidiary of
Company from any Person other than Company or any of its Subsidiaries, of any
equity Securities of such Subsidiary, or (iii) any direct or indirect loan,
advance (other than advances to employees for moving, entertainment and travel
expenses, drawing accounts and similar expenditures in the ordinary course of
business) or capital contribution by Company or any of its Subsidiaries to any
other Person (other than a Wholly-Owned Subsidiary of Company).  The amount of any Investment shall be the
original cost of such Investment plus the cost of all additions thereto,
without any adjustments for increases or decreases in value, or write-ups,
write-downs or write-offs with respect to such Investment.

 

14

 

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

 

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

 

“Lender” and “Lenders” means the persons identified as “Lenders” and listed
on Schedule I attached to this Agreement, together with their successors
and permitted assigns pursuant to subsection 9.1.

 

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

 

“Loan” or “Loans” means one or more of the
Fixed Rate Loans or Floating Rate Loans or any combination thereof.

 

“Loan Documents” means this Agreement, the
Notes, the Guaranties, the Collateral Documents and the Intercreditor
Agreement.

 

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

 

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

 

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

 

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

 

“Maturity Date” means the earlier of (i)
June 30, 2008 and (ii) the date that all Loans shall become due and payable in
full hereunder, whether by acceleration or otherwise.

 

“Mortgage” means (i) a security instrument
(whether designated as a deed of trust or a mortgage or by any similar title)
executed and delivered by any Loan Party, substantially in such form as may be
reasonably approved by Agents in their sole discretion, in each case with such
changes thereto as may be recommended by Administrative Agent’s local counsel
based on local laws or customary local mortgage or deed of trust practices, or
(ii) at the option of Administrative Agent, in the case of any future Mortgaged
Property, an amendment to an existing Mortgage or a new Mortgage, in form
satisfactory to Administrative Agent, adding such future Mortgaged Property to
the Real Property Assets encumbered by such existing Mortgage, in either case
as such security instrument or amendment may be amended, restated, supplemented
or otherwise modified from time to time. 
“Mortgages” means all such
instruments, including any future Mortgages, collectively.

 

15

 

“Mortgaged Property” means the Closing Date
Mortgaged Property or a property mortgaged in the future pursuant to subsection
5.8.

 

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

 

“Net Asset Sale Proceeds” means, with
respect to any Asset Sale, Cash payments (including any Cash received by way of
deferred payment pursuant to, or by monetization of, a note receivable or
otherwise, but only as and when so received) received from such Asset Sale, net
of any bona fide direct costs incurred in connection with such Asset Sale,
including (i) income taxes and all other governmental costs and expenses
reasonably estimated to be actually payable in connection with such Asset Sale
(including, in the event of any Asset Sale with respect to non-U.S. assets, any
such taxes, costs, and expenses resulting from repatriating such proceeds to
the U.S.), (ii) payment of the outstanding principal amount of, premium or
penalty, if any, and interest on any Indebtedness (other than the Loans) that
is secured by a Lien on the stock or assets in question and that is required to
be repaid under the terms thereof as a result of such Asset Sale, (iii) all
reasonable and customary fees and expenses with respect to legal, investment
banking, brokerage, accounting and other professional fees, sales commissions
and disbursements, (iv) reserves for purchase price adjustments and retained
liabilities reasonably expected to be payable by Company and its Subsidiaries
in cash in connection therewith and (v) solely with respect to any Asset Sale
consummated by a Subsidiary, the pro rata portion of any such Cash payments
required to be distributed to any shareholders of such Subsidiary or any other
Subsidiary that, directly or indirectly, holds the capital stock of such
Subsidiary (but excluding in each case Company and its Subsidiaries).

 

“Net Insurance/Condemnation Proceeds” means
any Cash payments or proceeds received by Company or any of its Subsidiaries
(i) under any casualty insurance policy in respect of a covered loss thereunder
or (ii) as a result of the taking of any assets of Company or any of its
Subsidiaries by any Person pursuant to the power of eminent domain,
condemnation or otherwise, or pursuant to a sale of any such assets to a purchaser
with such power under threat of such a taking, in each case net of any actual
and reasonable documented costs incurred by Company or any of its Subsidiaries
in connection with the adjustment or settlement of any claims of Company or
such Subsidiary in respect thereof, but excluding (x) any such payments or
proceeds thereunder required to be paid to a creditor (other than the holders
of the Loans) secured by such assets that is required to be repaid under the
terms thereof as a result of the relevant covered loss or taking, (y) any
income taxes and all other taxes, governmental costs and expenses reasonably
estimated to be actually payable in connection with the receipt of such Net
Insurance/Condemnation Proceeds and (z) solely with respect to any Net Insurance/Condemnation
Proceeds received by a Subsidiary, the pro rata portion of any such Cash
payments required to be distributed to any shareholders of such Subsidiary or
any other Subsidiary that, directly or indirectly, holds the capital stock of
such Subsidiary (but excluding in each case Company and its Subsidiaries).

 

“Net Securities Proceeds” has the meaning
set forth in subsection 2.4B(ii)(c).

 

“Net Senior Debt” means, at any date,
Consolidated Total Debt less
Subordinated Indebtedness less
Cash and Cash Equivalents held by Company and its Subsidiaries, in each case at
such date.

 

“Net Senior Debt Ratio” means, at the end of
any Fiscal Quarter, subject to subsection 1.2(b), the ratio of (a) Net Senior
Debt as of the last day of such Fiscal Quarter to (b) Consolidated EBITDA for
the consecutive four Fiscal Quarters ending on the last day of such Fiscal
Quarter.

 

“Net Senior Debt Ratio Amount” means an
amount of Indebtedness under the First Lien Credit Agreement (not to exceed
$10,000,000 in the aggregate during the term of this Agreement) that, at the
time of incurrence, results in the Net Senior Debt Ratio being less than or
equal to 2.00:1.00 (calculated

 

16

 

based on the most recently ended four Fiscal
Quarter period for which financial statements have been delivered pursuant to
subsection 5.1 but giving pro forma
effect to such incurrence as if it occurred on the last day of such period).

 

“Net Yield” has the meaning set forth in
subsection 2.2G.

 

“Non-Consenting Lender” means any Lender
that, in response to any request by Company or Administrative Agent to a
departure from, waiver of or amendment to any provision of any Loan Document
that requires the agreement of all Lenders, which departure, waiver or amendment
received the consent of the Requisite Lenders, shall not have given its consent
to such departure, waiver or amendment.

 

“Non-Wholly-Owned Subsidiary” means any
Subsidiary of Company that is not a Wholly-Owned Subsidiary.

 

“Notes” means one or more of the Fixed Rate Notes or
Floating Rate Notes or any combination thereof.

 

“Notice of Borrowing” means a notice
substantially in the form of Exhibit VI annexed hereto delivered by
Company to Administrative Agent pursuant to subsection 2.1B.

 

“Notice of Continuation” means a notice substantially in the form of Exhibit XIV
annexed hereto delivered by Company to Administrative Agent pursuant to
subsection 2.2D with respect to a continuation of the applicable basis for
determining the interest rate with respect to the Floating Rate Loans specified
therein.

 

“Obligations” means all obligations of every
nature of each Loan Party from time to time owed to Agents, Lenders or any of
them under the Loan Documents, whether for principal, interest (including
interest which, but for the filing of a petition in bankruptcy with respect to
such Loan Party, would have accrued on any Obligation, whether or not a claim
is allowed against such Loan Party for such interest in the related bankruptcy
proceeding), fees, premium, expenses, indemnification or otherwise.

 

“Officer’s Certificate” means, as applied to
any Person, a certificate executed on behalf of such Person by its chief
executive officer, president, treasurer or its chief financial officer (or if
there is no chief financial officer, its chief accounting officer).

 

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

 

“Organizational Authorizations” means, with
respect to any Person, resolutions of its Board of Directors, general partners
or members of such Person, and such other Persons, groups or committees
(including, without limitation, managers and managing committees), if any,
required by the Organizational Certificate or Organizational Documents of such
Person to authorize or approve the taking of any action or the entering into of
any transaction.

 

“Organizational Certificate” means, with
respect to any Person, the certificate or articles of incorporation,
partnership or limited liability company or any other similar or equivalent
organizational, charter or constitutional certificate or document filed with
the applicable governmental authority in the jurisdiction of its incorporation,
organization or formation, which, if such Person is a partnership or limited
liability company, shall include such certificates, articles or other
certificates or documents in respect of each partner or member of such Person.

 

17

 

“Organizational Documents” means, with
respect to any Person, the by-laws, partnership agreement, limited liability company
agreement, operating agreement, management agreement or other similar or
equivalent organizational, charter or constitutional agreement or arrangement,
which, if such Person is a partnership or limited liability company, shall
include such by-laws, agreements or arrangements in respect of each partner or
member of such Person.

 

“Original Closing Date” means May 11, 2000.

 

“Parent” means DeCrane Holdings Co., a
Delaware corporation.

 

“Parent Guaranty” means the Parent Guaranty
executed and delivered by Parent on the Closing Date, substantially in the form
of Exhibit VII annexed hereto, as such Parent Guaranty may be amended,
restated, supplemented or otherwise modified from time to time.

 

“Parent P-I-K Securities” means the PIK
Notes and the PIK Preferred Stock.

 

“Parent Pledge Agreement” means the Pledge
Agreement executed and delivered by Parent on the Closing Date, substantially
in the form of Exhibit VIII annexed hereto, as such Parent Pledge
Agreement may be amended, restated, supplemented or otherwise modified from
time to time.

 

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

 

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

 

“Permitted Acquisition” means the
acquisition of a business (whether through the purchase of assets or of shares
of capital stock) by Company or one of its Subsidiaries (w) which is in a line
of business similar or related to the lines of business of Company and its
Subsidiaries, (x) for total consideration, for acquisitions made after the
Closing Date (including without limitation, cash purchase price, deferred or
financed purchase price and the assumption of Indebtedness, including Assumed
Indebtedness, and other liabilities), of not more than $35,000,000 for any
single acquisition or series of related acquisitions and, which consideration,
when aggregated with the consideration for all other acquisitions made after
the Original Closing Date, does not exceed $50,000,000; provided that
such aggregate total consideration for Permitted Acquisitions of or by
Subsidiaries that are not Subsidiary Guarantors shall not exceed an aggregate
of $30,000,000 plus the Company
Excess Cash Flow Amount; and provided  further that such aggregate
total consideration for Permitted Acquisitions of or by Non-Wholly-Owned
Subsidiaries that are not Subsidiary Guarantors shall not exceed an aggregate
of $10,000,000  plus the Company Excess Cash Flow Amount,
(y) at a time at which no Event of Default or Potential Event of Default shall
exist or shall occur as a result of giving effect to such proposed acquisition,
and (z) after giving effect to such acquisition, including without limitation
giving effect to the incurrence or assumption of any Indebtedness or any other
costs and expenditures or the making of any distributions and other payments in
connection with or otherwise relating to such Permitted Acquisition, Company
shall be in pro forma compliance
with each of the financial covenants set forth in subsection 6.6 for the
immediately preceding four Fiscal Quarter period prior to such date of
determination.

 

For purposes
of calculating on any date usage of each dollar basket set forth in this
definition:

 

(i)                                     Earn-outs
paid or payable under any agreement entered into on or prior to the Closing
Date shall be excluded from any such calculation on any date; and

 

18

 

(ii)                                  with
respect to any acquisition consummated after the Closing Date, Earn-outs shall
be included in any such calculation on any date on if, and only to the extent
that, such Earn-outs have been actually paid by Company or any of its
Subsidiaries on or prior to such date; provided that if on any date any
such calculation is made any such dollar basket is exceeded as a result of the
inclusion of any Earn-out, any acquisition consummated on or prior to such date
and constituting a “Permitted Acquisition” shall continue to constitute a
“Permitted Acquisition”, but such dollar basket shall be deemed to be fully
utilized for purposes of determining whether any proposed new acquisition is a
“Permitted Acquisition”; and

 

(iii)                               equity Securities of Parent issued with
respect to any acquisition consummated after April 1, 2003 shall be excluded
from any such calculation on any date.

 

Notwithstanding
the foregoing, no acquisition otherwise permitted hereby by Company or a
Subsidiary shall be a Permitted Acquisition if any consideration therefor
consists of any Cash, Indebtedness or other assets other than equity Securities
of Parent, Net Securities Proceeds of equity Securities of Parent that are not
required to be used to prepay the Loans pursuant to subsection 2.4B or
Earn-outs unless, after giving effect to such transaction, the First Lien
Leverage Ratio is equal to or less than 2.5:1.00 for the four Fiscal Quarter
period for which financial statements have been delivered pursuant to
subsection 5.1 ending immediately prior to the date of closing of such
acquisition, as evidenced by an Officer’s Certificate of Company delivered on
such date of closing to Syndication Agent showing the calculations therefor.

 

“Permitted Acquisition Compliance
Certificate” means an Officer’s Certificate substantially in the form of Exhibit
IX annexed hereto delivered to Agents by Company pursuant to subsection
6.7(vi).

 

“Permitted Encumbrances” means the following types of Liens:

 

(i)                                     Liens
for taxes, assessments or governmental charges or claims the payment of which
is not, at the time, required by subsection 5.3;

 

(ii)                                  Liens
of landlords (except as may be waived or released as more particularly
described in subsection 5.8), Liens of banks and rights of set-off, statutory
Liens of carriers, warehousemen, mechanics, repairmen, workmen, contractors and
materialmen, and other Liens imposed by law, in each case incurred in the
ordinary course of business (a) for amounts not yet overdue or (b) for amounts
that are overdue and that (in the case of any such amounts overdue for a period
in excess of 30 days) are being contested in good faith by appropriate
proceedings, so long as such reserves or other appropriate provisions, if any,
as shall be required by GAAP shall have been made for any such contested
amounts;

 

(iii)                               Liens
incurred or deposits made in the ordinary course of business in connection with
workers’ compensation, unemployment insurance and other types of social
security, or to secure the performance of tenders, statutory obligations,
surety and appeal bonds, bids, leases, government contracts, trade contracts,
performance and return-of-money bonds and other similar obligations (exclusive
of obligations for the payment of borrowed money), so long as no foreclosure,
sale or similar proceedings have been commenced with respect to any portion of
the Collateral on account thereof;

 

(iv)                              any
attachment or judgment Lien not constituting an Event of Default under
subsection 7.8;

 

(v)                                 leases
or subleases granted to third parties and not interfering in any material
respect with the ordinary conduct of the business of Company or any of its
Subsidiaries;

 

19

 

(vi)                              easements,
rights-of-way, restrictions, encroachments, and other minor defects or
irregularities in title, in each case which do not and will not materially
detract from the value or impair the use by Company or any of its Subsidiaries
in the ordinary conduct of the business of Company or any of its Subsidiaries;

 

(vii)                           any (a)
interest or title of a lessor or sublessor under any permitted lease, (b)
restriction or encumbrance to which the interest or title of such lessor or
sublessor may be subject to, or (c) subordination of the interest of the lessee
or sublessee under such lease to any restriction or encumbrance referred to in
the preceding clause (b);

 

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

 

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

 

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

 

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

 

(xii)                             licenses
of patents, trademarks and other intellectual property rights granted by
Company or any of its Subsidiaries in the ordinary course of business and not
interfering in any material respect with the ordinary conduct of the business
of Company or such Subsidiary; and

 

(xiii)                          the
general and special exceptions approved by Administrative Agent, which
exceptions appear on the mortgagee title insurance policies with respect to the
owned and leased properties to be encumbered by a Mortgage, pursuant to
subsections 5.8B, 5.8C and 5.10.

 

“Permitted Indebtedness” 
means up to $20,000,000 in aggregate principal amount of Indebtedness
(plus any amounts paid in kind or otherwise accreted to the original principal
amount to satisfy interest obligations): (i) constituting the Incremental
Facility or (ii) (a) issued pursuant to documentation containing covenants,
defaults, remedies and other material terms no more restrictive than such terms
set forth in this Agreement or otherwise in form and substance reasonably
satisfactory to Administrative Agent, (b) which shall provide for no scheduled
redemptions, scheduled prepayments (excluding requirements to prepay or
purchase upon asset sales, change of control events, equity contributions and
other similar prepayment events and excluding any requirement to prepay upon an
acceleration), sinking fund installment payments or maturities prior to the
Maturity Date, (c) which shall not bear cash interest in excess of 12%  per annum, and (d) which may be secured by
Liens on all or a portion of the Collateral that are junior in priority to the
Liens granted under the Loan Documents, pursuant to an intercreditor agreement
in form and substance reasonably satisfactory to Administrative Agent.

 

“Person” means and includes natural persons,
corporations, limited partnerships, general partnerships, limited liability
companies, limited liability partnerships, joint stock companies, associations,
companies, trusts, banks, trust companies, land trusts, business trusts or
other organizations, whether or not legal entities, and governments (whether
federal, state or local, domestic or foreign, and including political
subdivisions thereof) and agencies or other administrative or regulatory bodies
thereof.

 

20

 

“PIK Notes” means Senior Pay-in-Kind Notes, if any, issued
by Parent, in exchange for PIK Preferred Stock which notes shall (i) provide
for the payment of interest by accretion of the original face amount thereof or
by the issuance of additional PIK Notes for a period of not less than five
years after the First Closing Date, (ii) not provide for any scheduled
redemptions or prepayments or any sinking fund installment payments or
maturities prior to a date which is seven and one-half years after the First
Closing Date, and (iii) have terms and conditions not less favorable to Parent
and Lenders than those set forth in the draft “Description of Exchange
Debentures” dated August 27, 1998, a copy of which has been distributed to
Lenders.

 

“PIK Preferred Stock” means Pay-in-Kind Preferred Stock issued by
Parent, providing for the payment of dividends thereon by the issuance of
additional shares of such Pay-in-Kind Preferred Stock or by accretion of the
original face amount thereof for a period of not less than five years from the
First Closing Date, which Pay-in-Kind Preferred Stock is unsecured and
unguaranteed, as amended from time to time to the extent permitted under the
Parent Guaranty.

 

“Pledge Agreement” means the Pledge Agreement executed and
delivered by Company and each Subsidiary Guarantor on the Closing Date,
substantially in the form of Exhibit IV annexed hereto, as such Pledge
Agreement may thereafter be amended, restated, supplemented or otherwise
modified from time to time.

 

 “Pledged Collateral” means, collectively, at any time, the
“Pledged Collateral” as defined in the Pledge Agreement and the Parent Pledge
Agreement.

 

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

 

“Prime Rate” means the rate of interest per annum
announced from time to time by CSFB as its prime commercial lending rate in
effect at its principal office in New York City.  The Prime Rate is a reference rate and does not necessarily
represent the lowest or best rate actually charged to any customer.  CSFB or any other Lender may make commercial
loans or other loans at rates of interest at, above or below the Prime Rate.

 

“Property Reinvestment Application” means the application of Net Asset Sale
Proceeds or Net Insurance/Condemnation Proceeds, as the case may be, to the
acquisition by Company or its Subsidiaries of tangible or intangible property
or assets (other than property or assets that constitute current assets under
GAAP, unless the acquisition thereof is incidental to the acquisition of a materially
greater amount of non-current assets) that is to be used in the business of
Company and its Subsidiaries.

 

“Pro Rata Share” means (i) with respect to all payments,
computations and other matters relating to the Fixed Rate Loan Commitments or
the Fixed Rate Loan of any Lender, the percentage obtained by dividing
(x) the Fixed Rate Loan Exposure of that Lender by (y) the
aggregate Fixed Rate Loan Exposure of all Lenders; (ii) with respect to all
payments, computations and other matters relating to the Floating Rate Loan
Commitments or the Floating Rate Loan of any Lender, the percentage obtained by
dividing (1) the Floating Rate Loan Exposure of that Lender by
(2) the aggregate Floating Rate Loan Exposure of all Lenders; and (iii) for all
other purposes with respect to each Lender, the percentage obtained by dividing
(x) the sum of the Fixed Rate Loan Exposure of that Lender plus the
Floating Rate Loan Exposure of that Lender by (y) the sum of the
aggregate Fixed Rate Loan Exposure of all Lenders plus the aggregate
Floating Rate Loan Exposure of all Lenders, in any such case as the applicable
percentage may be adjusted by assignments permitted pursuant to subsection 9.1.

 

21

 

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

 

“Quarterly Date” means the date which is 30 days after the
Closing Date and each three-month anniversary thereof.

 

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

 

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

 

“Related Agreements” means, collectively, the Fourth Amendment to
the First Lien Credit Agreement dated as of December 10, 2003 and all
agreements and documents executed in connection therewith.

 

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

 

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

 

“Requisite Lenders” means on any date, Lenders having or holding
more than 50% of the sum of (i) the aggregate Fixed Rate Loan Exposure of
all Lenders plus (ii) the aggregate Floating Rate Loan Exposure of all
Lenders, in each case on such date.

 

“Reserve Requirement” means, with respect to an Interest Period,
the maximum aggregate reserve requirement (including all basic, supplemental,
marginal and other reserves) which is imposed under Regulation D on
Eurocurrency liabilities.

 

“Response Date” has the meaning assigned to
that term in subsection 2.4B(iii).

 

“Restricted Junior Payment” means (i) any distribution, direct or
indirect, on account of any class of stock of Company now or hereafter
outstanding, except a distribution payable solely in shares of that class or a
junior class of stock payable solely to holders of that class, (ii) any
redemption, retirement, sinking fund or similar payment, purchase or other
acquisition for value, direct or indirect, of any class of stock of Company now
or hereafter outstanding, (iii) any payment made to retire, or to obtain the
surrender of, any outstanding warrants, options or other rights to acquire
shares of any class of stock of Company now or hereafter outstanding, and (iv)
any payment or prepayment of principal of, premium, if any, or interest on, or
redemption, purchase, retirement, defeasance (including in-substance or legal defeasance),
sinking fund or similar payment with respect to, any Subordinated Indebtedness.

 

“Securities” means any stock, shares, partnership
interests, voting trust certificates, certificates of interest or participation
in any profit-sharing agreement or arrangement, options, warrants, bonds,
debentures, notes, or other evidences of indebtedness, secured or unsecured,
convertible, subordinated or otherwise, or in general any instruments commonly
known as “securities” or any certificates of interest,

 

22

 

shares or participations in temporary or
interim certificates for the purchase or acquisition of, or any right to
subscribe to, purchase or acquire, any of the foregoing.

 

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

 

“Security Agreement” means the Security Agreement executed and
delivered on the Closing Date by Company and each then existing Subsidiary
Guarantor or executed and delivered or supplemented by any additional
Subsidiary Guarantor from time to time thereafter in accordance with subsection
5.7, substantially in the form of Exhibit X annexed hereto, as such
Security Agreement may thereafter be amended, restated, supplemented or
otherwise modified from time to time.

 

“Senior Subordinated Note Indenture” means the Indenture, dated as of October 5,
1998, executed by Company and State Street Bank and Trust Company, as trustee,
pursuant to which the Senior Subordinated Notes are issued, as such Indenture
has been amended through and as of the Closing Date and as such Indenture may
hereafter be amended from time to time to the extent permitted under subsection
6.15.

 

“Senior Subordinated Notes” means the senior subordinated notes issued
by Company pursuant to the Senior Subordinated Note Indenture, as such notes
may be amended from time to time to the extent permitted under subsection
6.15.  “Senior Subordinated Notes” shall also refer to the registered
Securities, if any, having the same terms and conditions as the notes described
above which are issued by Company in exchange for such notes upon exercise of
the customary registration rights accompanying such notes.

 

“Solvency Certificate” means an 
Officer’s Certificate substantially in the form of Exhibit XI
annexed hereto.

 

“Solvent” means, with respect to any Person, that as
of the date of determination (i) the then fair value of the property of such
Person is greater than the total amount of liabilities (including contingent
liabilities) of such Person; (ii) the then fair saleable value of the property
of such Person is not less than the amount that will be required to pay the
probable liabilities on such Person’s then existing debts as they become
absolute and matured considering all financing alternatives and potential asset
sales reasonably available to such Person; (iii) such Person’s capital is not
unreasonably small in relation to its business; and (iv) such Person does not
intend to incur, or believe (nor should it reasonably believe) that it will
incur, debts beyond its ability to pay such debts as they become due.  For purposes of this definition, the amount
of any contingent liability at any time shall be computed as the amount that,
in light of all of the facts and circumstances existing at such time,
represents the amount that can reasonably be expected to become an actual or
matured liability.

 

“Subordinated Indebtedness” means the Senior Subordinated Notes and any
other Indebtedness of Company subordinated in right of payment to the Obligations
pursuant to documentation containing maturities, amortization schedules,
covenants, defaults, remedies, subordination provisions and other material
terms in form and substance satisfactory to Agents and Requisite Lenders.

 

“Subsidiary” means, with respect to any Person, any
corporation, partnership, limited liability company, association, joint venture
or other business entity of which more than 50% of the total voting power of
shares of stock or other ownership interests entitled (without regard to the
occurrence of any contingency) to vote in the election of the Person or Persons
(whether directors, managers, trustees or other Persons performing similar
functions) constituting members of the governing body of such entity is at the
time owned and controlled, directly or indirectly, by that Person or one or
more of the other

 

23

 

Subsidiaries of that Person or a combination
thereof.  For purposes of this Agreement
and the other Loan Documents, any Acquired Controlled Person shall be deemed to
be a “Subsidiary” of Company for purposes of subsections 4.1, 4.5, 4.6, 4.7,
4.9, 4.10, 5.4A and the first sentence of subsections 5.4B, 5.6, 6.1, 6.2A,
6.2C, 6.3, 6.4, 6.5, 6.7, 6.10, 6.11, 6.12 and 6.14 and, to the extent (and
only to the extent) that it relates to any of the foregoing subsections,
Section 7.

 

“Subsidiary Guarantor” means any Subsidiary of Company that
executes and delivers the Subsidiary Guaranty on the Closing Date or executes
and delivers a counterpart thereto from time to time thereafter pursuant to
subsection 5.7.

 

“Subsidiary Guaranty” means the Subsidiary Guaranty executed and
delivered by existing Subsidiaries of Company on the Closing Date and to be
executed and delivered by additional Subsidiaries of Company from time to time
thereafter in accordance with subsection 5.7, substantially in the form of Exhibit
XII annexed hereto, as such Subsidiary Guaranty may hereafter be amended,
restated, supplemented or otherwise modified from time to time.

 

“Supplemental Collateral Agent” has the meaning assigned to that term in
subsection 8.1B.

 

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

 

“Tax” or “Taxes” means any present or future
tax, levy, impost, duty, charge, fee, deduction or withholding of any nature
and whatever called, imposed by any taxing authority, from or through which
payments originate or are made or deemed made by or to Company, but excluding
any income, excise, stamp or franchise taxes and other similar taxes, fees,
duties, withholdings or other charges imposed on any Lender or any Agent as a
result of a present or former connection between the applicable lending office
(or, in the case of any Agent, the office through which it performs any of its
actions as Agent) of such Lender or Agent, 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 taken any action to enforce, this
Agreement or the other Loan Documents).

 

“Title Company” means one or more title insurance companies
selected by Company and reasonably satisfactory to Agents.

 

“Transaction” means, collectively, (i) repayment of a
portion of Indebtedness in respect of the First Lien Credit Agreement on the
Closing Date, (ii) the making of the Loans on the Closing Date and (iii) any
other transactions contemplated in Section 3 of this Agreement.

 

“Transaction Costs” means the fees, costs and expenses payable
by any Loan Party in connection with the Transaction.

 

“UCC” means the Uniform Commercial Code (or any
similar or equivalent legislation) as in effect in any applicable jurisdiction.

 

“Wholly-Owned Subsidiary” means any Subsidiary of Company all of the
equity interests (except directors’ qualifying shares) and voting interests of
which are owned by Company and/or one or more of Company’s other Wholly-Owned
Subsidiaries.

 

24

 

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

 

(a)                                  Unless otherwise specified, all
accounting terms used herein or in any other Loan Document shall be
interpreted, all accounting determinations and computations hereunder or
thereunder shall be made, and all financial statements required to be delivered
hereunder or thereunder (including under subsection 6.6) shall be prepared, in
accordance with GAAP, as in effect in the United States on the Closing Date
and, unless expressly provided herein, shall be computed or determined on a
consolidated basis and without duplication.

 

(b)                                 For purposes of computing the
Consolidated Interest Coverage Ratio, the Consolidated Leverage Ratio and the
Net Senior Debt Ratio (and any financial calculations required to be made or
included within such ratios) as of the end of any Fiscal Quarter and for
purposes of computing Consolidated EBITDA (but not for purposes of computing
Consolidated Excess Cash Flow for any period), as at the end of any Fiscal
Quarter, all components of such ratios (other than Consolidated Capital
Expenditures) or Consolidated EBITDA for the period of four Fiscal Quarters ending
at the end of such Fiscal Quarter shall include or exclude, as the case may be,
without duplication, such components of such ratios or Consolidated EBITDA
attributable to any business or assets that have been acquired or disposed of
by Company or any of its Subsidiaries (including through mergers or
consolidations) after the first day of such period of four Fiscal Quarters and
prior to the end of such period, as determined in good faith by Company on a pro forma basis for such period of four
Fiscal Quarters as if such acquisition or disposition had occurred on such
first day of such period (including, whether or not such inclusion would be
permitted under GAAP or Regulation S-X of the Securities and Exchange
Commission, cost savings that would have been realized had such acquisition
occurred on such day).

 

1.3                               Other
Definitional Provisions and Rules of Construction.

 

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

 

B.                                    References to “Sections” and
“subsections” shall be to Sections and subsections, respectively, of this
Agreement unless otherwise specifically provided.

 

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

 

Section 2.                                          AMOUNTS AND TERMS OF COMMITMENTS AND
LOANS

 

2.1                               Commitments;
Making of Loans;
Notes.

 

A.                                    Commitments.  Subject to the terms and conditions of this Agreement and in
reliance upon the representations and warranties of Company herein set forth,
(i) each Fixed Rate Loan Lender having a Fixed Rate Loan Commitment severally
agrees to lend to Company on the Closing Date an amount not exceeding its Pro
Rata Share of the aggregate amount of the Fixed

 

25

 

Rate Loan
Commitments, which Pro Rata Share is set forth opposite its name on Schedule
2.1 attached hereto, and (ii) each Floating Rate Loan Lender having a
Floating Rate Loan Commitment severally agrees to lend to Company on the
Closing Date an amount not exceeding its Pro Rata Share of the aggregate amount
of the Floating Rate Loan Commitments, in each case to be used for the purposes
identified in subsection 2.5A, which Pro Rata Share is set forth opposite its
name on Schedule 2.1 attached hereto. The amounts of each Fixed Rate
Loan Lender’s Fixed Rate Loan Commitment and each Floating Rate Loan Lender’s
Floating Rate Loan Commitment are set forth opposite such Lender’s name on Schedule
2.1 annexed hereto.  The aggregate
amount of the Commitments on the Closing Date is $80,000,000.  Each Lender’s Commitment (i) shall expire
immediately and without further action on January 15, 2004, if the Loans are not made on or before that
date, and (ii) to the extent unused, shall expire on the close of business on
the Closing Date.  Company may make only
one borrowing under the Commitments on the Closing Date.  Amounts borrowed under this subsection 2.1A
and subsequently repaid or prepaid may not be reborrowed.

 

B.                                    Borrowing Mechanics. Loans made on the Closing Date shall
be in an aggregate minimum amount of $1,000,000 and multiples of $100,000 in
excess of that amount.  Company shall
deliver to Administrative Agent a Notice of Borrowing no later than 12:00 Noon
(New York time) at least one Business Day in advance of the proposed Closing
Date.  The Notice of Borrowing shall
specify (i) the proposed Closing Date (which shall be a Business Day), (ii) the
amount and type of Loans requested and (iii) in the case of Floating Rate Loans,
the initial Interest Period requested therefor.

 

Company shall
notify Administrative Agent prior to the funding of the Loans in the event that
any of the matters to which Company is required to certify in the Notice of
Borrowing as being true and correct on the Closing Date is not true and correct
as of the Closing Date, and the acceptance by Company of the proceeds of the
Loans shall constitute a certification by Company, as of the Closing Date, as
to the matters to which Company is required to certify in the Notice of
Borrowing as being true and correct on the Closing Date.

 

C.                                    Disbursement of
Funds.  All Loans shall be made by Lenders
simultaneously and proportionately to their respective Pro Rata Shares of the
Commitments, it being understood that no Lender shall be responsible for any
default by any other Lender in that other Lender’s obligation to make a Loan
requested hereunder nor shall the Commitment of any Lender to make the Loan
requested be increased or decreased as a result of a default by any other
Lender in that other Lender’s obligation to make a Loan requested
hereunder.  Promptly after receipt by
Administrative Agent of the Notice of Borrowing pursuant to subsection 2.1B,
Administrative Agent shall notify each Lender of the proposed borrowing.  Each Lender shall make the amount of its
Loan available to Administrative Agent not later than 1:00 P.M. (New York time)
on the Closing Date, in same day funds in Dollars, at the Funding and Payment
Office.  Upon satisfaction or waiver of
the conditions precedent specified in Section 3, Administrative Agent shall
promptly make the proceeds of the Loans available to Company on the Closing
Date, by causing an amount of same day funds in Dollars equal to the proceeds
of all the Loans received by Administrative Agent from Lenders to be credited to
such account or accounts as may be designated in writing to Administrative
Agent by Company.

 

Unless
Administrative Agent shall have been notified by any Lender prior to the
Closing Date for any Loans that such Lender does not intend to make available
to Administrative Agent the amount of such Lender’s Loan requested on the
Closing Date, Administrative Agent may assume that such Lender has made such
amount available to Administrative Agent on the Closing Date and Administrative
Agent may, in its sole discretion, but shall not be obligated to, make
available to Company a corresponding

 

26

 

amount on the Closing Date.  If such corresponding amount is not in fact
made available to Administrative Agent by such Lender, Administrative Agent
shall be entitled to recover such corresponding amount on demand from such
Lender together with interest thereon, for each day from the Closing Date until
the date such amount is paid to Administrative Agent, at the Federal Funds
Effective Rate for three Business Days and thereafter at the interest rate
applicable to the Loans.  If such Lender
does not pay such corresponding amount forthwith upon Administrative Agent’s
demand therefor, Administrative Agent shall promptly notify Company and Company
shall immediately pay such corresponding amount to Administrative Agent
together with interest thereon, for each day from the Closing Date until the
date such amount is paid to Administrative Agent, at the rate payable under
this Agreement for Loans of the type made on the Closing Date on which, and
with respect to which, Administrative Agent made available such amount.  Nothing in this subsection 2.1C shall be
deemed to relieve any Lender from its obligation to fulfill its Commitments hereunder
or to prejudice any rights that Company may have against any Lender as a result
of any default by such Lender hereunder.

 

Unless
Administrative Agent shall have been notified by Company prior to the date on
which it is scheduled to make payment to Administrative Agent of a payment of
principal, interest or fees to Administrative Agent for the account of Lenders
that Company does not intend to make available to Administrative Agent such
amount on such date, Administrative Agent may assume that Company has made such
amount available to Administrative Agent on such date and Administrative Agent
may, in its sole discretion, but shall not be obligated to, make available to
Lenders a corresponding amount on such date. 
If such corresponding amount is not in fact made available to
Administrative Agent by Company, Administrative Agent shall be entitled to
recover such corresponding amount on demand from Company together with interest
thereon, for each day from such scheduled payment until the date such amount is
paid to Administrative Agent, at the interest rate applicable to the relevant
Loans.  If Company does not pay such
corresponding amount forthwith upon Administrative Agent’s demand therefor,
Administrative Agent shall promptly notify Lenders and Lenders shall
immediately pay such corresponding amount to Administrative Agent together with
interest thereon, for each day from the scheduled payment date until the date
such amount is paid to Administrative Agent, at the rate payable under this
Agreement for Loans of the type made on such scheduled payment date on which,
and with respect to which, Administrative Agent made available such amount.

 

D.                                    Notes.  Company shall execute and deliver on the Closing Date (i) to
each Fixed Rate Loan Lender (or to Administrative Agent for that Lender) that
has so requested at least one Business Day prior to the Closing Date a Fixed
Rate Note substantially in the form of Exhibit V-1 annexed hereto
to evidence that Lender’s Fixed Rate Loan, in the principal amount of that Lender’s
Fixed Rate Loan and with other appropriate insertions, and (ii) to each
Floating Rate Loan Lender (or to Administrative Agent for that Lender) that has
so requested at least one Business Day prior to the Closing Date a Floating
Rate Note substantially in the form of Exhibit V-2 annexed hereto
to evidence that Lender’s Floating Rate Loan, in the principal amount of that
Lender’s Floating Rate Loan and with other appropriate insertions.

 

E.                                      Register.  (a)  Each Lender may
maintain in accordance with its usual practice an account or accounts
evidencing the Indebtedness of Company to such Lender resulting from each Loan
made by such Lender to Company, including the amounts of principal and interest
payable and paid (including Accreted Amounts and Default Rate Accreted Amounts
and the increase to outstanding principal resulting from Accreted Amounts and
Default Rate Accreted Amounts as provided in subsection 2.2A and subsection
2.2E) to such Lender from time to time hereunder.  In the case of a Lender that does not request, pursuant to the
preceding paragraph, execution and delivery of a Note or Notes evidencing the
Loans made by such Lender to Company, such account or accounts shall, to the
extent not inconsistent with the notations made by Administrative Agent in the
Register (as defined below), be conclusive and binding on

 

27

 

Company absent
manifest error; provided, however, that the failure of any Lender
to maintain such account or accounts shall not limit or otherwise affect any
Obligations of Company or any other Loan Party.

 

(b) (i)  Company hereby
designates Administrative Agent to serve as its agent, solely for the purpose
of this subsection (b)(i), to maintain a register (the “Register”) on which Administrative Agent
will record each Lender’s Commitments, the Loans made by each Lender to
Company, the Interest Period, if any, with respect thereto, the Accreted
Amounts and Default Rate Accreted Amounts, if any, with respect thereto and the
increase to outstanding principal resulting from Accreted Amounts and Default
Rate Accreted Amounts as provided in subsection 2.2A and subsection 2.2E, and
each repayment in respect of the principal amount of the Loans of each Lender
to Company and annexed to which Administrative Agent shall retain a copy of
each Assignment Agreement delivered to Administrative Agent pursuant to
subsection 9.1.  Failure to make any
recordation, or any error in such recordation, shall not affect Company’s
obligations in respect of such Loans. 
The entries in the Register shall be conclusive, in the absence of
manifest error, and Company, Administrative Agent and Lenders shall treat each
Person in whose name a Loan (and as provided in subsection (b)(ii) below, the
Note evidencing such Loan, if any) is registered as the owner thereof for all
purposes of this Agreement notwithstanding notice or any provision herein to
the contrary.

 

(ii)                                  Company
agrees that, upon the request by any Lender which becomes a party to this
Agreement after the date hereof to Administrative Agent, Company will execute
and deliver to such Lender a Note evidencing the Loans made by such Lender to
Company.  Each Lender agrees that before
assigning its Loans, or any part thereof (other than by granting participations
therein), that Lender will make a notation on any applicable Note of all Loans
evidenced by that Note, all principal payments previously made thereon and of
the date to which interest thereon has been paid and Accreted Amounts and
Default Rate Accreted Amounts, if any, with respect thereto and the increase to
outstanding principal resulting from Accreted Amounts and Default Rate Accreted
Amounts as provided in subsection 2.2A and subsection 2.2E; provided
that the failure to make (or any error in the making of) a notation of any Loan
made under such Note shall not limit or otherwise affect such disposition or
the obligations of Company hereunder or under such Note with respect to any
Loan or any payments of principal or interest on such Note.

 

2.2                               Interest
on the Loans.

 

A.                                    Rate of
Interest.  Subject to the provisions of
subsection 2.2E, (i) each Fixed Rate Loan shall bear interest on the unpaid
principal amount thereof (including any Accreted Amounts and Default Rate
Accreted Amounts as provided below) from the date made through maturity
(whether by acceleration or otherwise) at a rate equal to 15.0% per annum and
(ii) each Floating Rate Loan shall bear interest on the unpaid principal amount
thereof (including any Accreted Amounts and Default Rate Accreted Amounts as
provided below) from the date made through maturity (whether by acceleration or
otherwise) at a rate equal to (a) (1) the Adjusted Eurodollar Rate for the
Interest Period applicable to such Floating Rate Loan plus 8.5% per annum or (2) if required to
be a Base Rate Loan as provided herein, at the sum of the Base Rate plus 7.5% per annum, plus (b)3.0% per annum.  Until
payment in full of all obligations under the First Lien Credit Agreement
described in clause (i) of the definition thereof, termination of all
commitments to extend credit thereunder and expiration, surrender or cash
collateralization of all letters of credit thereunder, 3.0% per annum of the
interest payable on the Loans  (such
amount being hereinafter referred to as the “Accreted
Amount” for such period) shall accrete as described below and shall
not be payable in cash; provided that after payment in full of all
obligations under the First Lien Credit Agreement described in clause (i) of
the definition thereof, termination of all commitments to extend credit
thereunder and expiration, surrender or cash

 

28

 

collateralization of
all letters of credit thereunder, accretion of up to 3.0% per annum of the
interest payable on the Loans shall be at the option of Company.  Company may exercise such option by
delivering written notice thereof to Administrative Agent (who shall deliver
such notice to each Lender) at least ten Business Days prior to each applicable
Quarterly Date and on each other date on which interest is required to be paid
on Loans, setting forth notice of such election to accrete interest and the
percentage of such interest shall so accrete. 
Any such election must be made with respect to all Loans.  On the Quarterly Date which falls in July
2004 and on each Quarterly Date thereafter which falls in January and July, and
on each other date on which interest is required to be paid on Loans in
connection with any prepayment, any Accreted Amounts (other than Accreted
Amounts that have been so added on any prior Quarterly Date or other such date)
shall be added to the outstanding principal amount of the Loans.

 

B.                                    Interest Periods. 
In connection with each Floating Rate Loan, Company may, pursuant to the
Notice of Borrowing or the applicable Notice of Continuation, as the case may
be, select an interest period (each an “Interest
Period”) to be applicable to such Loan, which Interest Period shall
be, at Company’s option, either a three, six, or, if available to each Lender,
nine or twelve month period; provided that:

 

(i)                                     the initial Interest Period for each Floating Rate Loan shall commence on
the Closing Date and shall end on the date which is 30 days after the Closing
Date and each Interest Period shall, in any event, end on a Quarterly Date;

 

(ii)                                  in the case of immediately successive
Interest Periods applicable to a Floating
Rate Loan, each successive Interest Period shall commence on the day on
which the next preceding Interest Period expires;

 

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

 

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

 

(v)                                 no Interest Period with respect to any
portion of the Floating Rate Loans shall extend beyond June 30, 2008;

 

(vi)                              there shall be outstanding at any time no
more than four Interest Periods with respect to the Floating Rate Loans; and

 

(vii)                           in the event Company fails to specify an Interest
Period for any Floating Rate Loan in the applicable Notice of Continuation,
Company shall be deemed to have selected an Interest Period of three months.

 

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

 

29

 

D.                                    Continuation.   Subject to the provisions of subsection 2.6,
Company shall, upon the expiration of any Interest Period applicable to a
Eurodollar Rate Loan, continue all of such Loan as a Eurodollar Rate Loan.

 

Company shall deliver a Notice of
Continuation to Administrative Agent no later than 12:00 noon (New York time)
at least three Business Days in advance of the proposed continuation date.  Each Notice of Continuation shall specify
(i) the proposed continuation date (which shall be a Business Day),
(ii) the amount of the Loan to be continued, (iii) the requested Interest
Period, and (iv) that no Potential Event of Default or Event of Default has
occurred and is continuing as of the date of the proposed continuation.  In lieu of delivering the above-described
Notice of Continuation, Company may give Administrative Agent telephonic notice
by the required time of any proposed continuation under this subsection 2.2D; provided
that such notice shall be promptly confirmed in writing by delivery of a Notice
of Continuation to Administrative Agent on or before the proposed continuation
date.  Upon receipt of written or
telephonic notice of any proposed continuation under this subsection 2.2D,
Administrative Agent shall promptly transmit such notice by telefacsimile or
telephone to each Lender.

 

Neither Administrative Agent nor any Lender
shall incur any liability to Company in acting upon any telephonic notice
referred to above that Administrative Agent believes in good faith to have been
given by a duly authorized officer or other person authorized to act on behalf
of Company or for otherwise acting in good faith under this subsection 2.2D,
and upon continuation of the applicable basis for determining the interest rate
with respect to any Loans in accordance with this Agreement pursuant to any such
telephonic notice Company shall have effected a continuation hereunder.

 

Except as otherwise provided in subsections
2.6B, 2.6C and 2.6G, a Notice of Continuation for continuation of a Eurodollar
Rate Loan (or telephonic notice in lieu thereof) shall be irrevocable on and
after the related Interest Rate Determination Date, and Company shall be bound
to effect a continuation in accordance therewith or to pay the amounts payable
pursuant to subsection 2.6D as a result of the failure to effect such continuation.

 

E.                                      Default Rate. Upon the occurrence and during the
continuation of any Event of Default, at the request of Administrative Agent,
the outstanding principal amount of all Loans and, to the extent permitted by
applicable law, any interest payments thereon not paid when due and any fees
and other amounts then due and payable hereunder, shall thereafter bear
interest (including post-petition interest in any proceeding under the
Bankruptcy Code or other applicable bankruptcy laws) payable upon demand at a rate
that is 2.0% per annum in excess of the interest rate otherwise payable under
this Agreement with respect to the applicable Loans (or, in the case of any
such fees and other amounts, at a rate which is 2.0% per annum in excess of the
interest rate otherwise payable under this Agreement for Base Rate Loans).  Any such 2.0% per annum payable under this
subsection 2.2E with respect to any applicable Loans (such amount being
hereinafter referred to as the “Default Rate
Accreted Amount” for any applicable period) shall accrete.  On each date on which amounts are required
to be paid in respect of Loans hereunder, all Default Rate Accreted Amounts
under this subsection 2.2E shall be added to the outstanding principal amount
of the Loans.  Payment or acceptance of
the increased rates of interest provided for in this subsection 2.2E is not a
permitted alternative to timely payment and shall not constitute a waiver of
any Event of Default or otherwise prejudice or limit any rights or remedies of
any Agent or any Lender.

 

F.                                      Computation of
Interest.  Interest on the Loans shall be computed on
the basis of a 360-day year and for the actual number of days elapsed in the
period during which it accrues.  In computing interest on any Loan, the date
of the making of such Loan or the first day of an Interest Period applicable to
such Loan or, with respect to a Base Rate Loan required to be

 

30

 

converted from a Eurodollar Rate Loan, the date of conversion of such
Eurodollar Rate Loan to such Base Rate Loan, as the case may be, shall be
included, and the date of payment of such Loan (if payment is received prior to
2:00 P.M. (New York time)) or the expiration date of an Interest Period
applicable to such Loan, as the case may be, shall be excluded, provided that
if a Loan is repaid on the same day on which it is made, one day’s interest
shall be paid on that Loan.

 

G.                                    Interest Rate on
Incremental Facility.  In the event
that the Net Yield applicable to the Incremental Facility is in excess of the
per annum rate of interest applicable to Fixed Rate Loans or Floating Rate
Loans pursuant to subsection 2.2A or the per annum rate of interest payable in
cash applicable to the Incremental Facility is in excess of the per annum rate
of interest payable in cash on the Fixed Rate Loans or the Floating Rate Loans
pursuant to subsection 2.2A, then (x) the per annum rate of interest payable in
cash for all Fixed Rate Loans or Floating Rate Loans, as applicable, shall
automatically be increased to any extent required so that the per annum rate of
interest payable in cash for all Fixed Rate Loans or Floating Rate Loans, as
applicable, is equal to the per annum rate of interest payable in cash for the
Incremental Facility, and (y) the per annum rate of interest for all Fixed Rate
Loans or Floating Rate Loans, as applicable, shall automatically be increased
to any extent required so that the per annum rate of interest for all Fixed
Rate Loans or Floating Rate Loans, as applicable, is equal to the Net Yield for
the Incremental Facility, in each case without any action or consent of
Company, any Agent or any Lender.  In no
event will the per annum rate of interest payable in cash in respect of the
Fixed Rate Loans or the Floating Rate Loans, as applicable, be less than the
per annum rate of interest payable in cash in respect of the Incremental
Facility.  “Net Yield” for purposes of loans constituting the Incremental
Facility incurred pursuant to subsection 6.1(x) shall mean the sum of (a) the
per annum rate of interest applicable to such loans at the date such
Incremental Facility is incurred plus
(b) any original issue discount offered to lenders in respect of such
Incremental Facility amortized equally over the period from the date such
Incremental Facility is incurred to the maturity date applicable to such
Incremental Facility; provided,
that such original issue discount shall not be amortized over a period of
greater than three years.  All
determinations by Administrative Agent as to the Net Yield or other matters set
forth in this subsection 2.2G shall be conclusive and binding on all parties
hereto absent manifest error.

 

2.3                               Fees.

 

Company agrees
to pay to Arranger and Agents such other fees in the amounts and at the times
separately agreed upon between Company, Agents and Arranger.

 

2.4                               Repayments, Prepayments and Reductions in Loan
Commitments; General Provisions Regarding Payments.

 

A.                                    Scheduled Payment
of Loans.

 

Company shall pay in full the outstanding amount of the Loans and all
other Obligations owing hereunder no later than the Maturity Date.

 

B.                                    Prepayments.

 

(i)  Voluntary
Prepayments.  After payment in full
of all obligations under the First Lien Credit Agreement described in clause
(i) of the definition thereof, termination of all commitments to extend credit
thereunder and expiration, surrender or cash collateralization of all letters
of credit thereunder, Company may, upon three Business Days’ prior written or
telephonic notice by 12:00 Noon (New York time) on the date required and, if given
by telephone, promptly

 

31

 

confirmed
in writing to Administrative Agent (and Administrative Agent will promptly
notify each Lender thereof), at any time and from time to time prepay any Loans
on any Business Day in whole or in part in an aggregate minimum amount of
$1,000,000 and multiples of $100,000 in excess of that amount, subject in the
case of prepayments of Eurodollar Rate Loans to compliance with subsection 2.6D
if such prepayment is made on a date prior to the expiration of the applicable
Interest Period.  Notice of prepayment
having been given as aforesaid, the principal amount of the Loans specified in
such notice shall become due and payable on the prepayment date specified
therein.  Any such voluntary prepayment
shall be applied as specified in subsection 2.4C.

 

(ii)  Mandatory
Prepayments.  After payment in full
of all obligations in respect of the First Lien Credit Agreement, termination
of all commitments to extend credit thereunder and expiration, surrender or
cash collateralization of all letters of credit thereunder, the Loans shall be
prepaid in the amounts and under the circumstances set forth below, all such
prepayments to be applied as set forth below or as more specifically provided
in subsection 2.4C:

 

(a)                                  Prepayments from Net Asset Sale
Proceeds.  No later than 30 calendar days following the
date of receipt by Company or any of its Subsidiaries of any Net Asset Sale
Proceeds in respect of any Asset Sale (other than any Asset Sale permitted
under subsections 6.7(iv) and 6.7(viii) or an Asset Sale to Company or a
Subsidiary Guarantor), Company shall prepay the Loans in an aggregate amount
equal to such Net Asset Sale Proceeds; provided that if Company states
in the Officer’s Certificate delivered pursuant to subsection 2.4B(ii)(e) that
Company or the applicable Subsidiary intends to apply, within 365 days after
the receipt of such Net Asset Sale Proceeds, all or a portion (as specified in
such Officer’s Certificate) of such Net Asset Sale Proceeds to a Property
Reinvestment Application Company shall not be required to prepay the Loans by
such amount to be applied to a Property Reinvestment Application; provided
further that to the extent such amount of Net Asset Sale Proceeds is not
applied to a Property Reinvestment Application within such 365-day period,
Company shall, on the last day of such 365-day period prepay the Loans in an
aggregate amount equal to such amount of Net Asset Sale Proceeds not so applied
to a Property Reinvestment Application.

 

(b)                                 Prepayments from Net
Insurance/Condemnation Proceeds.  No later
than the first Business Day following the date of receipt by Administrative
Agent or by Company or any of its Subsidiaries after the Closing Date of any
Net Insurance/Condemnation Proceeds in excess of $250,000 with respect to any
loss or taking or series of related losses or takings, Company shall prepay the
Loans in an aggregate amount equal to the amount of such Net
Insurance/Condemnation Proceeds; provided, however, that (i) no
such prepayment shall be required to the extent under the terms of any lease or
other agreement existing on the date hereof such Net Insurance/Condemnation
Proceeds are required to be used to replace, rebuild or repair the asset so
damaged, destroyed or taken and (ii) if Company states in the Officer’s
Certificate delivered pursuant to subsection 2.4B(ii)(e) that Company or the
applicable Subsidiary intends to apply, within 365 days after the receipt of
such Net Insurance/Condemnation Proceeds, all or a portion (as specified in
such Officer’s Certificate) of such Net Insurance/Condemnation Proceeds to a
Property Reinvestment Application, Company shall not be required to prepay
Loans by such amount to be applied to a Property Reinvestment Application; provided
further that to the extent such amount of Net

 

32

 

Insurance/Condemnation
Proceeds is not applied to a Property Reinvestment Application within such
365-day period, Company shall, on the last day of such 365-day period prepay
the Loans in an aggregate amount equal to such amount of such Net
Insurance/Condemnation Proceeds not so applied to a Property Reinvestment
Application.

 

(c)                                  Prepayments Due to Issuance of Debt
or Equity Securities.  On the date of receipt by
Parent, Company or any of its Subsidiaries of the cash proceeds (any such cash
proceeds, net of underwriting discounts and commissions and other reasonable
costs and expenses associated therewith, including investment banking, legal,
brokerage, accounting fees and expenses, being “Net Securities Proceeds”), from the issuance of equity
Securities of Parent, Company or any of its Subsidiaries after the Closing Date
(other than Excluded Equity Proceeds) or of debt Securities of Company or any
of its Subsidiaries after the Closing Date (other than the proceeds of the
issuance of Indebtedness permitted by subsection 6.1), Company shall prepay the
Loans in an aggregate amount equal to such Net Securities Proceeds in the case
of the proceeds of debt Securities and in an aggregate amount equal to 50% of
such Net Securities Proceeds in the case of the proceeds of equity Securities; provided
the amount of such prepayment hereunder in respect of Net Securities Proceeds
constituting the proceeds of the issuance and sale of equity Securities shall
be limited to the amount necessary to reduce the amount of Indebtedness
included in the calculation of the Consolidated Leverage Ratio to the amount
that would result, on a pro forma
basis after giving effect to such prepayment, in a Consolidated Leverage Ratio
of 3.50:1.00 or less at the end of the Fiscal Quarter then most recently ended
and (ii) no such prepayment in respect of Net Securities Proceeds constituting
the proceeds of the issuance and sale of equity Securities shall be required to
be made at such times as the Consolidated Leverage Ratio at the end of the most
recent Fiscal Quarter (as evidenced by an Officer’s Certificate delivered to
Administrative Agent) is equal to or less than 3.50:1.00.

 

(d)                                 Prepayments from Consolidated Excess
Cash Flow.  In the event that there shall be
Consolidated Excess Cash Flow for any Fiscal Year, Company shall, no later than
the fifth Business Day after the delivery of financial statements for such
Fiscal Year, prepay the Loans in an aggregate amount equal to 75% of such
Consolidated Excess Cash Flow less
the aggregate amount of all voluntary prepayments of Loans actually made in
such Fiscal Year pursuant to subsection 2.4B(i); provided that (i) the
amount of such prepayment hereunder in respect of Excess Cash Flow shall be
limited to the amount necessary to reduce the amount of Indebtedness included
in the calculation of the Consolidated Leverage Ratio to the amount that would
result, on a pro forma basis
after giving effect to such prepayment, in a Consolidated Leverage Ratio of
3.50:1.00 or less at the end of the Fiscal Quarter then most recently ended and
(ii) if as of the last day of such Fiscal Year, the Consolidated Leverage Ratio
(as evidenced by an Officer’s Certificate delivered to Administrative Agent is
equal to or less than 3.50:1.00, no prepayments of any Loans need be made.

 

(e)                                  Calculations of Net Proceeds
Amounts; Additional Prepayments Based on Subsequent Calculations. 
Concurrently with any prepayment of the Loans pursuant to subsections
2.4B(ii)(a)-(d) and on the date any such prepayment would have been required to
be made pursuant to subsections

 

33

 

2.4B(ii)(a)
or 2.4B(ii)(b) but for the application of the provisos to such subsections,
Company shall deliver to Administrative Agent an Officer’s Certificate
demonstrating the calculation of the amount (the “Net Proceeds Amount”) of the applicable Net Asset Sale
Proceeds, Net Insurance/Condemnation Proceeds or Net Securities Proceeds, or
the applicable Consolidated Excess Cash Flow, as the case may be (and which, in
the case of Consolidated Excess Cash Flow, may be the Officer’s Certificate
delivered pursuant to subsection 5.1(iii) with respect to the financial statements
for the Fiscal Year to which such excess cash flow relates if such Officer’s
Certificate contains the required information). In the event that Company shall
subsequently determine that the actual Net Proceeds Amount was greater than the
amount set forth in such Officer’s Certificate, Company shall promptly make an
additional prepayment of the Loans in an amount equal to the amount of such
excess, and Company shall concurrently therewith deliver to Administrative
Agent an Officer’s Certificate demonstrating the derivation of the additional
Net Proceeds Amount resulting in such excess.

 

(f)                                    Company shall not be required to
make any prepayment of Loans otherwise required by subsections 2.4B(ii)(a),
(b), (c) or (d) unless and until the aggregate principal amount of the Loans to
be prepaid is at least equal to $250,000.

 

(iii)  Prepayment
upon Change of Control.  Upon the
occurrence of a Change of Control, Company will give written notice (a “Control Change Notice”) of such fact to
Administrative Agent and all Lenders no more than five days after the Change of
Control.  The Control Change Notice
shall (i) describe the facts and circumstances of such Change of Control
in reasonable detail, (ii) make reference to this subsection 2.4B(iii) and
state that, unless such Lender makes a declaration of its intent to have its
Loans prepaid as provided below, the principal amount of such Loans shall not
be prepaid, (iii) specify the date of prepayment, which will be no earlier than
5 days nor later than 15 days from the date such notice is mailed (the “Control Change Payment Date”), and
(iv) specify the date (the “Response Date”) by which such Lender must
respond to such Control Change Notice pursuant to this subsection 2.4B(iii) in
order to have its Loans prepaid (which shall not be earlier than 5 Business
Days after delivery of the Control Change Notice), together with accrued
interest thereon and the Change of Control Premium, on the Control Change
Payment Date.

 

All Loans of such Lender shall be prepaid, together
with accrued interest thereon and the Change of Control Premium, on the Control
Change Payment Date if such Lender delivers to Company a written notice (the “Declaration Notice”) to prepay such
Lender’s Loans (which notice may provide, at such Lender’s option, for a
partial prepayment of such Lender’s Loans). 
Company shall prepay, and shall cause its Subsidiaries to distribute to
Company sufficient funds to prepay, in full on the Control Change Payment Date
all Loans for which a Declaration Notice has been issued, together with accrued
interest and the Change of Control Premium thereon.  Such Declaration Notice shall only be effective if provided to
Company on or prior to the Response Date. 
In the event that a Control Change Notice is given and any Lender fails
to provide a Declaration Notice within the time period set forth above, the
Loans of such Lender shall not be prepaid.

 

All prepayments on the Loans pursuant to this
subsection 2.4B(iii) shall be made by the payment in cash of the aggregate
principal amount remaining unpaid on such Loans, and accrued interest thereon
to the date of such prepayment, together with the Change of Control Premium.

 

34

 

(iv)                              Call Protection.  In the event that for any reason the Loans
are prepaid in whole or in part prior to the date falling three years after the
Closing Date, Company shall pay to Lenders a prepayment premium on the
principal amount so prepaid as follows:

 

	
  Relevant
  period

  	
   

  	
  Prepayment
  premium

  as a percentage of the

  principal amount so

  prepaid

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  On or prior
  to the first anniversary of the Closing Date

  	
   

  	
  3.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  On or prior
  to the second anniversary of the Closing Date and after the first anniversary
  of the Closing Date

  	
   

  	
  2.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  On or prior
  to the third anniversary of the Closing Date and after the second anniversary
  of the Closing Date

  	
   

  	
  1.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  After the
  third anniversary of the Closing Date

  	
   

  	
  0.0

  	
  %

  

 

C.                                    General Provisions
Regarding Payments.

 

(i)  Manner
and Time of Payment.  All payments
by Company of principal, interest, premium, fees and other Obligations
hereunder and under the Notes shall be made in Dollars in same day funds,
without defense, setoff or counterclaim, free of any restriction or condition,
and delivered to Administrative Agent not later than 2:00 P.M. (New York time)
on the date due at the Funding and Payment Office for the account of Lenders;
funds received by Administrative Agent after that time on such due date shall
be deemed to have been paid by Company on the next succeeding Business Day; provided
that Accreted Amounts and Default Rate Accreted Amounts shall be paid by
increasing the principal amount of the Loans shall be paid as provided in
subsection 2.2A or subsection 2.2E, as applicable.

 

(ii)  Application
of Payments to Principal, Interest and Premium.  All payments in respect of the principal amount of any Loan shall
include payment of accrued interest and premium, if any is due, on the
principal amount being repaid or prepaid, and all such payments (and, in any
event, any payments in respect of any Loan on a date when interest is due and
payable with respect to such Loan) shall be applied to the payment of any
premium and interest before application to principal.  Any mandatory prepayments of the Loans pursuant to subsection
2.4B(ii) shall be applied to prepay the Fixed Rate Loans and the Floating Rate
Loans on a pro rata basis (in accordance with the respective outstanding
principal amounts thereof).

 

(iii) 
Apportionment of Payments. 
Aggregate principal, premium and interest payments in respect of Loans
shall be apportioned among all outstanding Loans to which such payments relate,
in each case proportionately to Lenders’ respective Pro Rata Shares.  Administrative Agent shall promptly
distribute to each Lender, at its primary address set forth below its name on
the appropriate signature page hereof or at such other address as such Lender
may request, its Pro

 

35

 

Rata
Share of all such payments received by Administrative Agent when received by
Administrative Agent pursuant to subsection 2.3.

 

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

 

D.                                    Application of
Proceeds of Collateral and Payments Under Guaranties.

 

(i)  Application
of Proceeds of Collateral.  Subject
to the terms of the Intercreditor Agreement (to the extent then in effect), all
proceeds received by Administrative Agent in respect of any sale of, collection
from, or other realization upon all or any part of the Collateral under any
Collateral Document shall be applied, upon the occurrence and during the
continuance of an Event of Default (except as otherwise agreed by
Administrative Agent and the Requisite Lenders), against, the applicable
Secured Obligations (as defined in such Collateral Document) in the following
order of priority:

 

(a)                                  to
the payment of all costs and expenses of such sale, collection or other
realization, including reasonable fees and expenses of Administrative Agent and
its agents and counsel, and all other expenses and liabilities made or incurred
by Administrative Agent in connection therewith, and all amounts for which
Administrative Agent is entitled to indemnification under such Collateral
Document and all advances made by Administrative Agent thereunder for the
account of the applicable Loan Party, and to the payment of all costs and
expenses paid or incurred by Administrative Agent in connection with the
exercise of any right or remedy under such Collateral Document, all in
accordance with the terms of this Agreement and such Collateral Document;

 

(b)                                 thereafter,
to the extent of any excess such proceeds, to the payment of all other such
Secured Obligations then due and payable for the ratable benefit of the holders
thereof; and

 

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

 

(ii)  Application
of Payments Under Guaranties.  All
payments received by Administrative Agent under any of the Guaranties at any
time at which an Event of Default has occurred and is continuing, shall (except
as otherwise agreed by Administrative Agent and the Requisite Lenders) be
applied promptly from time to time by Administrative Agent in the following
order of priority:

 

(a)                                  to
the payment of the costs and expenses of any collection or other realization
under the Guaranties, including reasonable fees and expenses of Administrative
Agent and its agents and counsel, and all expenses, liabilities and advances
made or incurred by Administrative Agent in connection therewith, all in
accordance with the terms of this Agreement and such Guaranty;

 

(b)                                 thereafter,
to the extent of any excess such payments, to the payment of all other
Guarantied Obligations (as defined in such Guaranty) then due and payable for
the ratable benefit of the holders thereof; and

 

36

 

(c)                                  thereafter,
to the extent of any excess such payments, to the payment to Parent or to the
applicable Subsidiary Guarantor or to whosoever may be lawfully entitled to
receive the same or as a court of competent jurisdiction may direct.

 

2.5                               Use of Proceeds.

 

A.                                    Loans. 
The proceeds of the Loans shall be applied by Company to permanently
prepay not less than forty percent (40%) of the principal amount of term loan
Indebtedness outstanding in respect of the First Lien Credit Agreement on the
Closing Date (prior to giving effect to the application of proceeds described
herein), to permanently reduce revolving commitments in respect of the First
Lien Credit Agreement on the Closing Date in an aggregate amount not less than
$16,000,000 and to repay revolving loans outstanding on the Closing Date in
respect of the First Lien Credit Agreement after giving effect to the
foregoing, and the remaining amount of the proceeds of the Loans shall be used
to pay for fees and expenses relating to the transactions contemplated
hereunder and for working capital and general and other corporate purposes of Company
and its Subsidiaries.

 

B.                                    Margin Regulations. 
No borrowing and no portion of the proceeds of any borrowing under this
Agreement shall be used by Company or any of its Subsidiaries in any manner
that is in violation of Regulation U or Regulation X of the Board of Governors
of the Federal Reserve System in effect on the date or dates of such borrowing
and such use of proceeds.

 

2.6                               Special
Provisions Governing
Eurodollar Rate Loans.

 

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

 

A.                                    Determination of
Applicable Interest Rate.  As soon as
practicable after 11:00 A.M. (London time) on each Interest Rate Determination
Date, Administrative Agent shall determine (which determination shall, absent
manifest error, be final, conclusive and binding upon all parties) the interest
rate that shall apply to the Eurodollar Rate Loans for which an interest rate
is then being determined for the applicable Interest Period and shall promptly
give notice thereof (in writing or by telephone confirmed in writing) to
Company and each Floating Rate Lender.

 

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

 

37

 

C.                                    Illegality or
Impracticability of Eurodollar Rate Loans. 
In
the event that on any date any Floating Rate Lender shall have determined
(which determination shall be final and conclusive and binding upon all parties
hereto but shall be made only after consultation with Company and
Administrative Agent) that the making, maintaining or continuation of its
Eurodollar Rate Loans has become unlawful as a result of the introduction of,
or any change  in or in the interpretation
of, any law, treaty, governmental rule, regulation, guideline or order (whether
or not having the force of law even though the failure to comply therewith
would not be unlawful), in each case after the date hereof, then, and in any
such event, such Floating Rate Lender shall be an “Affected Lender” and it shall on that day give notice (by
telefacsimile or by telephone confirmed in writing) to Company and
Administrative Agent of such determination (which notice Administrative Agent
shall promptly transmit to each other Floating Rate Lender).  Thereafter (a) the obligation of the
Affected Lender to continue Loans as Eurodollar Rate Loans shall be suspended
until such notice shall be withdrawn by the Affected Lender (which such
Affected Lender shall do promptly upon obtaining actual knowledge that the
circumstance giving rise to such suspension no longer exist), (b) to the
extent such determination by the Affected Lender relates to a Eurodollar Rate
Loan then being requested to be continued by Company pursuant to a Notice of
Continuation, the Affected Lender shall convert such Loan to a Base Rate Loan
(with interest thereon being payable on the same date or dates on which
interest is payable in respect of the corresponding Loans of Floating Rate
Lenders that are not Affected Lenders), (c) the Affected Lender’s
obligation to maintain its outstanding Eurodollar Rate Loans (the “Affected Loans”) shall be terminated at the
earlier to occur of the expiration of the Interest Period then in effect with
respect to the Affected Loans or when required by law, and (d) the
Affected Loans shall automatically convert into Base Rate Loans on the date of
such termination (with interest thereon being payable on the same date or dates
on which interest is payable in respect of the corresponding Loans of Floating
Rate Lenders that are not Affected Lenders). 
Nothing in this subsection 2.6C shall affect the obligation of any
Floating Rate Lender other than an Affected Lender to maintain Loans as
Eurodollar Rate Loans in accordance with the terms of this Agreement.

 

D.                                    Compensation For
Breakage or Non-Commencement of Interest Periods.  Company
shall compensate each Lender, upon written request by that Lender (which
request shall set forth the basis for requesting such amounts), for all
reasonable losses, expenses and liabilities (including any interest paid by
that Lender to lenders of funds borrowed by it to make or carry its Eurodollar
Rate Loans and any loss, expense or liability sustained by that Lender in
connection with the liquidation or re-employment of such funds but excluding
any loss of margin for any period after any failure to borrow, continue or
convert any Eurodollar Loans, or any prepayment of Eurodollar Loans described
below) which that Lender may sustain: (i) if for any reason (other than a
default by that Lender) a borrowing of any Eurodollar Rate Loan does not occur
on a date specified therefor in the Notice of Borrowing, or a conversion to or
continuation of any Eurodollar Rate Loan does not occur on a date specified
therefor in a Notice of Continuation or a telephonic request for conversion or
continuation, (ii) if any prepayment (including any prepayment pursuant to
subsection 2.4B(i)) or other principal payment or any conversion of any of its
Eurodollar Rate Loans occurs on a date prior to the last day of an Interest
Period applicable to that Loan, or (iii) if any prepayment of any of its
Eurodollar Rate Loans is not made on any date specified in a notice of
prepayment given by Company.

 

E.                                      Booking of
Eurodollar Rate Loans.  Any Lender may
make, carry or transfer Eurodollar Rate Loans at, to, or for the account of any
of its branch offices or the office of an Affiliate of that Lender; provided
that Company shall not be liable for any additional amounts pursuant to
subsection 2.7 as a result thereof nor shall any such action, by itself, cause
such Lender to become an Affected Lender.

 

38

 

F.                                      Assumptions
Concerning Funding of Eurodollar Rate Loans. 
Calculation
of all amounts payable to a Lender under this subsection 2.6 and under
subsection 2.7A shall be made as though that Lender had actually funded each of
its relevant Eurodollar Rate Loans through the purchase of a Eurodollar deposit
bearing interest at the rate obtained pursuant to clause (i) of the definition
of Adjusted Eurodollar Rate in an amount equal to the amount of such Eurodollar
Rate Loan and having a maturity comparable to the relevant Interest Period and
through the transfer of such Eurodollar deposit from an offshore office of that
Lender to a domestic office of that Lender in the United States of America; provided,
however, that each Lender may fund each of its Eurodollar Rate Loans in
any manner it sees fit and the foregoing assumptions shall be utilized only for
the purposes of calculating amounts payable under this subsection 2.6 and under
subsection 2.7A.

 

2.7                               Increased
Costs; Taxes;
Capital Adequacy.

 

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

 

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

 

(ii)                                  imposes any other condition (other
than with respect to a tax matter) on or affecting such Lender (or its
applicable lending office) or its obligations hereunder or the London interbank
market;

 

and
the result of any of the foregoing is to increase the cost to such Lender of
agreeing to make, making or maintaining Eurodollar Rate Loans hereunder or to
reduce any amount received or receivable by such Lender (or its applicable
lending office) with respect thereto; then, in any such case, Company shall pay
to such Lender, within 15 days after receipt of the statement referred to in
the next sentence, such additional amount or amounts as may be necessary to
compensate such Lender for any such increased cost or reduction in amounts
received or receivable hereunder.  Such
Lender shall promptly deliver to Company (with a copy to Administrative Agent)
a written statement, setting forth in reasonable detail the basis for
calculating the additional amounts owed to such Lender under this subsection
2.7A, which statement shall be conclusive and binding upon all parties hereto
absent manifest error.

 

39

 

B.                                    Withholding of
Taxes.

 

(i)  Payments
to Be Free and Clear.  All sums
payable by Company under this Agreement and the other Loan Documents shall
(except to the extent required by law) be paid free and clear of, and without
any deduction on account of, any Tax.

 

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

 

(a)                                  Company
shall pay any such Tax before the date on which penalties attach thereto, such
payment to be made for its own account;

 

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

 

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

 

provided that no such additional amount shall
be required to be paid to any Lender or Agent under clause (b) above except to
the extent that any change after the date hereof (in the case of each Lender and
Agent listed on the signature pages hereof) or after the date of the Assignment
Agreement pursuant to which such Lender became a Lender (in the case of each
other Lender) in any such requirement for a deduction, withholding or payment
as is mentioned therein shall result in an increase in the rate of such
deduction, withholding or payment from that in effect at the date of this
Agreement or at the date of such Assignment Agreement, as the case may be, in
respect of payments to such Lender or Agent.

 

(iii) 
If any Taxes are directly asserted against either of Agents or any
Lender with respect to any payment received by such Agents or such Lender under
the Agreement, such Agents or such Lender may pay such Taxes and Company will
promptly pay to such Person such additional amount (including any penalties,
interest or expenses) as is necessary in order that the net amount received by
such Person shall equal the amount of such Taxes paid by such Person; provided,
however, that Company shall not be obligated to make payment to Lenders
or Agents (as the case may be) pursuant to this sentence in respect of
penalties or interest attributable to any Taxes, if written demand therefor has
not been made by such Lenders or Agents within 60 days from the date on which
such Lenders or Agents knew of the imposition of Taxes by the relevant taxing
authority or for any additional imposition which may arise from the failure of
Lenders or Agents to apply payments in accordance with the applicable tax law
after Company has made the payments required hereunder; provided, further,
however, that Company shall not be required to pay any such additional amounts
except to the extent that any change after the date hereof (in the case of each
Lender and Agent listed on the signature pages hereof) or after the date of the
Assignment Agreement pursuant to which such Lender became a Lender (in the case
of each other Lender) in any such requirement for the deduction, withholding or
payment of Taxes shall result in an increase in the rate of such deduction,
withholding or payment from that in effect at

 

40

 

the
date of this Agreement or at the date of such Assignment Agreement, as the case
may be, in respect of payments to such Lender or Agent.  After a Lender or an Agent (as the case may
be) learns of the imposition of Taxes, such Lender or Agent will act in good
faith to notify Company of their obligations hereunder as soon as reasonably
possible.

 

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

 

(a)                                  Each
Lender and Agent that is not (i) a citizen or resident of the United States,
(ii) a corporation, partnership or other entity created or organized in or
under the laws of the United States, or any state or other political
subdivision thereof, (iii) an estate that is subject to U.S. federal income
taxation regardless of the source of its income or (iv) a trust, if any only if
(A) a court within the United States is able to exercise primary supervision
over the administration of the trust and (B) one or more U.S. persons has the
authority to control all substantial decisions of the trust (for purposes of
this subsection 2.7B(iv), any such Person referred to in clauses (i) through
(iv) being a “Non-US Lender or Agent”)
shall deliver to Administrative Agent and to Company on or prior to the Closing
Date (in the case of each Lender and Agent listed on the signature pages
hereof) or on or prior to the date of the Assignment Agreement pursuant to
which it becomes a Lender (in the case of each other Lender), and at such other
times as may be necessary in the determination of Company or Administrative
Agent (each in the reasonable exercise of its discretion), (1) two or more (as
Company or Administrative Agent reasonably request) original copies of Internal
Revenue Service Form W-8BEN or W-8EC1 (or any successor forms), properly
completed and duly executed by such Lender, together with any other certificate
or statement of exemption required under the Internal Revenue Code or the
regulations issued thereunder to establish that such Lender is not subject to
deduction or withholding of United States federal income tax with respect to
any payments to such Lender of principal, interest, fees or other amounts
payable under any of the Loan Documents or (2) if such Lender is not a “bank”
or other Person described in Section 881(c)(3) of the Internal Revenue Code and
cannot deliver either Internal Revenue Service Form W-8BEN or W-8EC1 pursuant
to clause (1) above, a Certificate re Non-Bank Status, together with two or
more (as Company or Administrative Agent reasonably request) original copies of
Internal Revenue Service Form W-8 (or any successor form), properly completed
and duly executed by such Lender, together with any other certificate or
statement of exemption required under the Internal Revenue Code or the
regulations issued thereunder to establish that such Lender is not subject to
deduction or withholding of United States federal income tax with respect to
any payments to such Lender of interest payable under any of the Loan
Documents.

 

(b)                                 Each
Lender required to deliver any forms, certificates or other evidence with
respect to United States federal income tax withholding matters pursuant to
subsection 2.7B(iv)(a) hereby agrees, from time to time after the initial
delivery by such Lender of such forms, certificates or other evidence, whenever
a lapse in time or change in circumstances renders such forms, certificates or
other evidence obsolete or inaccurate in any material respect, that such Lender
shall on or before the date that any such form, certification or other evidence
becomes obsolete or inaccurate (1) deliver to Administrative Agent and to
Company two or more (as Company or Administrative Agent may reasonably request)
new original copies of Internal Revenue Service Form W-8BEN or W-8EC1, or a
Certificate re Non-Bank Status and two or more (as Company or Administrative
Agent may reasonably request) new original copies of Internal Revenue Service
Form W-8, as the case may be, properly completed and duly executed by such
Lender, together with any other certificate or statement of exemption required
in order to confirm or establish that such Lender is not subject to deduction
or withholding of United States federal income tax with respect to payments to
such Lender under the Loan Documents or (2) notify Administrative Agent and
Company of its inability to deliver any such forms, certificates

 

41

 

or other
evidence.  Each Lender and each Agent
agrees, to the extent reasonable and without material cost to it, to provide to
Company and Administrative Agent such other applicable forms or certificates
that would reduce or eliminate any Tax.

 

(c)                                  Company
shall not be required to pay any additional amount to any Non-US Lender or
Agent under subsection 2.7B(ii) or 2.7B(iii) if such Lender or Agent shall have
failed to satisfy the requirements of clause (a) or (b)(1) of this subsection
2.7B(iv); provided that if such Lender shall have satisfied the
requirements of subsection 2.7B(iv)(a) on the Closing Date (in the case of each
Lender listed on the signature pages hereof) or on the date of the Assignment
Agreement pursuant to which it became a Lender (in the case of each other
Lender), nothing in this subsection 2.7B(iv)(c) shall relieve Company of its
obligation to pay any additional amounts pursuant to subsection 2.7B(ii) in the
event that, as a result of any change in any applicable law, treaty or
governmental rule, regulation or order, or any change in the interpretation,
administration or application thereof, such Lender is no longer properly
entitled to deliver forms, certificates or other evidence at a subsequent date
establishing the fact that such Lender is not subject to withholding as
described in subsection 2.7B(iv)(a).

 

(v) 
If Company determines in good faith that a reasonable basis exists for
contesting the imposition of a Tax with respect to a Lender or an Agent, if
requested by Company, the relevant Lender or Agent, as the case may be, shall
reasonably cooperate with Company in challenging such Tax at Company’s expense;
provided, however, that nothing in this subsection 2.7B(v) shall
require any Lender to submit to Company or any other Person any tax returns or
any part thereof, or to prepare or file any tax returns other than as such
Lender in its sole discretion shall determine.

 

(vi) 
If a Lender or an Agent shall receive a refund (including any offset or
credits) from a taxing authority (as a result of any error in the imposition of
Taxes by such taxing authority) of any Taxes paid by Company pursuant to
subsection 2.7B(ii) and 2.7B(iii) above, such Lender or Agent (as the case may
be) shall promptly pay Company the amount so received, with interest, if any,
from the taxing authority with respect to such refund, net of any tax liability
incurred by such Lender or Agent that is attributable to the receipt of such
refund and such interest; provided that such Lender or Agent, as the
case may be, shall be entitled to use reasonable methods to calculate the allocation
of any such refund payable to Company so long as such method does not result in
a materially reduced amount being paid to Company as compared to similarly
situated borrowers.

 

(vii) 
Each Lender and each Agent agrees, to the extent reasonable and without
material cost to it, to cooperate with Company to minimize any amounts payable
by Company under this subsection 2.7B; provided, however, that
nothing in this subsection 2.7B shall require any Lender to take any action
which, in the sole discretion of such Lender, is inconsistent with its internal
policy and legal and regulatory restrictions.

 

C.                                    Capital Adequacy
Adjustment.  If any Lender shall have determined that the
adoption, effectiveness, phase-in or applicability after the date hereof (in
the case of each Lender listed on the signature pages hereof and in the case of
any other Lender if such change shall have affected a class of Lenders
generally) or after the date of the Assignment Agreement pursuant to which such
Lender became a Lender (in the case of any other Lender if such change shall
not have affected a class of Lenders generally) of any law, rule or regulation
(or any provision thereof) regarding capital adequacy, or any change after such
date therein or in the interpretation or administration thereof by any
governmental authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by any Lender (or its
applicable lending office) with any guideline, request or directive regarding

 

42

 

capital adequacy
(whether or not having the force of law) of any such governmental authority,
central bank or comparable agency issued after such date, has or would have the
effect of reducing the rate of return on the capital of such Lender or any
corporation controlling such Lender as a consequence of, or with reference to,
such Lender’s Loans or Commitments or other obligations hereunder with respect
to the Loans to a level below that which such Lender or such controlling
corporation could have achieved but for such adoption, effectiveness, phase-in,
applicability, change or compliance (taking into consideration the policies of
such Lender or such controlling corporation with regard to capital adequacy), then
from time to time, within 15 days after receipt by Company from such Lender of
the statement referred to in the next sentence, Company shall pay to such
Lender such additional amount or amounts as will compensate such Lender or such
controlling corporation for such reduction. 
Such Lender shall deliver to Company (with a copy to Administrative
Agent) a written statement, setting forth in reasonable detail the basis of the
calculation of such additional amounts, which statement shall be conclusive and
binding upon all parties hereto absent manifest error; provided that
such Lender may not impose materially greater costs on Company than on
similarly situated borrowers by the virtue of the methodology applied to
calculate such additional amounts.

 

D.                                    Period of Recovery. 
Company shall not be obligated to compensate any Lender for any costs or
additional amounts with respect to which such Lender may request compensation
pursuant to this subsection 2.7 to the extent such costs have accrued, or have
been incurred, prior to 180 days prior to the date on which such Lender demands
compensation therefor hereunder.

 

2.8                               Obligation
of Lenders to
Mitigate; Replacement of Lender.

 

A.                                    Mitigation. 
Each Lender agrees that, as promptly as practicable after the officer of
such Lender responsible for administering the Loans of such Lender, becomes
aware of the occurrence of an event or the existence of a condition that would
cause such Lender to become an Affected Lender or that would entitle such
Lender to receive payments under subsection 2.7, it will, to the extent not
inconsistent with the internal policies of such Lender and any applicable legal
or regulatory restrictions, use reasonable efforts (i) to make, issue, fund or
maintain the Commitments of such Lender or the affected Loans of such Lender
through another lending office of such Lender, or (ii) take such other measures
as such Lender may deem reasonable, if as a result thereof the circumstances
which would cause such Lender to be an Affected Lender would cease to exist or
the additional amounts which would otherwise be required to be paid to such
Lender pursuant to subsection 2.7 would be reduced and if, as determined by
such Lender in its sole discretion, the making, issuing, funding or maintaining
of such Commitments or Loans through such other lending office or in accordance
with such other measures, as the case may be, would not otherwise materially
adversely affect such Commitments or Loans or the interests of such Lender; provided
that such Lender will not be obligated to utilize such other lending office
pursuant to this subsection 2.8 unless Company agrees to pay all incremental
expenses incurred by such Lender as a result of utilizing such other lending
office as described in clause (i) above. 
A certificate as to the amount of any such expenses payable by Company
pursuant to this subsection 2.8 (setting forth in reasonable detail the basis
for requesting such amount) submitted by such Lender to Company (with a copy to
Administrative Agent) shall be conclusive absent manifest error.

 

B.                                    Replacement of
Lender.  If Company receives a notice of amounts due
pursuant to subsection 2.7A, subsection 2.7B or subsection 2.7C from a Lender
or a Lender becomes an Affected Lender or a Non-Consenting Lender (any such
Lender, a “Subject Lender”), so
long as Company has obtained a commitment from another Lender or an Eligible

 

43

 

Assignee to purchase
at par the Subject Lender’s Loans and assume all other obligations of the Subject
Lender hereunder, upon written notice to the Subject Lender and Administrative
Agent, Company may require the Subject Lender to assign all of its Loans to
such other Lender or Eligible Assignee pursuant to the provisions of subsection
9.1B; provided that, prior to or concurrently with such replacement (i)
Company has paid to the Lender giving such notice all amounts under subsection
2.6D and subsection 2.7 (if applicable) through such date of replacement, (ii)
Company or the applicable assignee has paid to Administrative Agent the
processing fee required to be paid by subsection 9.1B(iv) and (iii) all of the
requirements for such assignment contained in subsection 9.1B, including,
without limitation, the consent of Agents (if required) and the receipt by Administrative
Agent of an executed Assignment Agreement and other supporting documents, have
been fulfilled.

 

Section 3.                                          CONDITIONS
TO LOANS

 

The
obligations of Lenders to make the Loans on the Closing Date are subject to
prior or concurrent satisfaction of the following conditions:

 

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

 

(i) 
Certified copies of the Organizational Certificate of such Person,
together with a good standing certificate from the Secretary of State of its
jurisdiction of incorporation, organization or formation, as applicable, and
each other state in which such Person does a material amount of business and is
qualified as a foreign entity to do business and, to the extent applicable and
generally available, a certificate or other evidence of good standing as to
payment of any applicable franchise or similar taxes from the appropriate
taxing authority of each of such jurisdictions, each dated a recent date prior
to the Closing Date;

 

(ii) 
Copies of the Organizational Documents of such Person, certified as of
the Closing Date by an Authorized Officer of such Person or such Person’s
corporate secretary or assistant secretary;

 

(iii) 
Organizational Authorizations of such Person approving and authorizing
the execution, delivery and performance of the Loan Documents to which it is a
party, and the consummation of the transactions contemplated by the foregoing,
certified as of the Closing Date by an Authorized Officer of such Person or
such Person’s corporate secretary or assistant secretary as being in full force
and effect without modification or amendment;

 

(iv) 
Signature and incumbency certificates with respect to each Authorized
Officer of such Person executing any Loan Document or authorized to execute any
notice, request or other document that may be delivered pursuant thereto;

 

(v) 
Executed originals of the Credit Agreement, any Notes requested by any
Lender at least one Business Day prior to the Closing Date, the Intercreditor
Agreement, the Parent Guaranty, the Parent Pledge Agreement, the Pledge
Agreement, the Security Agreement and the Subsidiary Guaranty, executed by
Parent, Company and each of Company’s Domestic Subsidiaries, as applicable; and

 

44

 

(vi) 
Such other documents as Agents may reasonably request.

 

3.2                               Use of
Proceeds.

 

(i)  Repayment
of Existing Indebtedness under the First Lien Credit Agreement.
Contemporaneously with the application of the proceeds of the Loans to be made
on the Closing Date, Company shall have used the proceeds of such Loans to
permanently prepay not less than forty percent (40%) of the principal amount of
term loan Indebtedness outstanding in respect of the First Lien Credit
Agreement on the Closing Date (prior to giving effect to the application of
proceeds described herein), to permanently reduce revolving commitments in
respect of the First Lien Credit Agreement on the Closing Date in an aggregate
amount not less than $16,000,000, to repay revolving loans outstanding on the
Closing Date in respect of the First Lien Credit Agreement after giving effect
to the foregoing, and to pay for Transaction Costs.  There shall be no existing Indebtedness of Company or its Subsidiaries
outstanding after consummation of the Closing Date transactions other than
Indebtedness permitted under subsection 6.1.

 

(ii)  Compliance
with Laws.  The making of the Loans
requested on the Closing Date shall not violate Regulation U or Regulation X of
the Board of Governors of the Federal Reserve System.

 

3.3                               Related
Agreements.  Agents
shall have received copies of the Related Agreements in effect on the Closing
Date.

 

3.4                               No
Material Adverse Change. 
No material adverse
change in the financial condition, operations, assets, business, properties or
prospects of Company and its Subsidiaries, taken as a whole, since June 30,
2003, shall have occurred.  There shall
exist no pending or threatened material litigation, proceedings or
investigations which could reasonably be expected to have a Material Adverse
Effect.

 

3.5                               Lien
Searches.  Delivery
to Administrative Agent of the results of a recent search of all effective UCC
financing statements and fixture filings and all judgment and tax lien filings
which may have been made with respect to any personal or mixed property of
Company and any of its Domestic Subsidiaries, together with copies of all such
filings disclosed by such search.

 

3.6                               Solvency
Certificate.  Company
shall have delivered to Arranger and Agents a Solvency Certificate dated the
Closing Date.

 

3.7                               Representations
and Warranties.  Company
shall have delivered to Agents an Officer’s Certificate, in form and substance
reasonably satisfactory to Agents, to the effect that the representations and
warranties in Section 4 hereof are true, correct and complete in all material
respects on and as of the Closing Date to the same extent as though made on and
as of that date (or, to the extent such representations and warranties
specifically relate to an earlier date, that such representations and
warranties were true, correct and complete in all material respects on and as
of such earlier date).

 

3.8                               Necessary Governmental Authorizations and Consents.  Company shall have obtained all
Governmental Authorizations and all consents of other Persons, in each case
that are necessary or advisable in connection with all transactions
contemplated by the Loan Documents, and each of the foregoing shall be in full
force and effect, in each case other than those the failure to obtain or
maintain which, either individually or in the aggregate, would not reasonably
be expected to have a Material Adverse Effect.

 

45

 

3.9                               Financial
Statements.  Lenders
shall have received (i) unaudited financial statements of Company and its
Subsidiaries for the Fiscal Quarter ended September 30, 2003, (ii) pro forma consolidated balance sheets of
Company and its Subsidiaries as of September 30, 2003, giving pro forma effect to the Closing Date
transactions and (iii) projected financial statements (including balance sheets
and statements of operations and cash flows) of Company and its Subsidiaries
through and including December 31, 2008.

 

3.10                        Fees. 
Company shall have paid
to Agents, Lenders and Arranger the fees payable on the Closing Date.

 

3.11                        Completion
of Proceedings.  All
documents executed or submitted pursuant hereto by or on behalf of Company or
any of its Subsidiaries or any other Loan Parties shall be reasonably
satisfactory in form and substance to Agents and their counsel; Agents and
their counsel shall have received all information, approvals, opinions,
documents or instruments that Agents or their counsel shall have reasonably
requested.

 

3.12                        Security Interests in Personal and Mixed Property. 
Administrative Agent
shall have received evidence satisfactory to it that each Loan Party shall have
taken or caused to be taken all such actions, executed and delivered or caused
to be executed and delivered all such agreements, documents and instruments,
and made or caused to be made all such filings and recordings (other than the
filing or recording of items described in clause (iii) below) that may be
necessary or, in the opinion of Agents, desirable in order to create in favor of
Administrative Agent, for the benefit of Lenders, a valid and (upon such filing
and recording) perfected First Priority security interest in the entire
personal and mixed property Collateral. 
Such actions shall include the following:

 

(i)  Schedules
to Collateral Documents.  Delivery
to Administrative Agent of accurate and complete schedules to all of the
applicable Collateral Documents;

 

(ii)  Stock
Certificates and Instruments. 
Delivery to the First Lien Collateral Agent (pursuant to the terms of
the Intercreditor Agreement) of (a) certificates (which certificates shall be
accompanied by irrevocable undated stock powers, duly endorsed in blank)
representing all capital stock pledged pursuant to the Parent Pledge Agreement
and the Pledge Agreement and (b) all promissory notes or other instruments
evidencing any Collateral;

 

(iii) 
UCC Financing Statements and Fixture Filings.  Delivery to Administrative Agent of UCC
financing statements and, where appropriate, fixture filings, with respect to
all personal and mixed property Collateral of such Loan Party, for filing in
all jurisdictions as may be necessary or, in the opinion of Administrative
Agent, desirable to perfect the First Priority security interests created in
such Collateral pursuant to the Collateral Documents; and

 

(iv)  Opinions
of Local Counsel.  Delivery to
Agents of an opinion of counsel (which counsel shall be reasonably satisfactory
to Agents) under the laws of the states of  California
and Arkansas with respect to the creation and perfection of the security
interests in favor of Administrative Agent in such Collateral, in each case in
form and substance reasonably satisfactory to Agents and dated the Closing
Date.

 

B.                                    Opinions of Counsel
to Loan Parties.  Lenders and their respective counsel shall
have received originally executed copies of a written opinion of Davis Polk
& Wardwell, special New York counsel for Loan Parties, and Spolin Silverman Cohen &
Bartlett LLP, counsel

 

46

 

for Loan Parties,
each in form and substance reasonably satisfactory to Agents and dated the
Closing Date.

 

3.13                        Notice
of Borrowing.  Administrative
Agent shall have received, in accordance with the provisions of subsection
2.1B, an executed Notice of Borrowing signed by an Authorized Officer of
Company.

 

3.14                        As of
the Closing Date:

 

(i) 
The representations and warranties contained herein and in the other
Loan Documents shall be true, correct and complete in all material respects on
and as of the Closing Date to the same extent as though made on and as of that
date, except to the extent such representations and warranties specifically
relate to an earlier date, in which case such representations and warranties
shall have been true, correct and complete in all material respects on and as
of such earlier date; and

 

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

 

Section 4.                                          REPRESENTATIONS AND WARRANTIES

 

In order to induce Lenders and Agents to enter into this Agreement and
to make the Loans, Company represents and warrants to each Lender and Agents,
on the Closing Date, that the following statements are true, correct and
complete:

 

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

 

A.                                    Organization and
Powers.  Each Loan Party is duly organized, validly
existing and, to the extent applicable, in good standing under the laws of its
jurisdiction of incorporation, formation or organization as specified in Schedule
4.1 annexed hereto except to the extent that the failure to be in good
standing has not had and will not have a Material Adverse Effect.  Each Loan Party has all requisite power and
authority to own and operate its properties, to carry on its business as now
conducted and as proposed to be conducted, to enter into the Loan Documents and
the Related Agreements to which it is a party and to carry out the transactions
contemplated thereby.

 

B.                                    Qualification and
Good Standing.  Each Loan Party is qualified to do business
and in good standing in every jurisdiction where its assets are located and
wherever necessary to carry out its business and operations, except in jurisdictions
where the failure to be so qualified or in good standing has not had and will
not have a Material Adverse Effect.

 

C.                                    Subsidiaries.  All of the Subsidiaries of Company as of the Closing Date are
identified in Schedule 4.1 annexed hereto. Each of the Subsidiaries of
Company identified in Schedule 4.1 is duly organized, validly existing
and in good standing under the laws of its respective jurisdiction of
incorporation, formation or organization set forth therein, has all requisite
power and authority to own and operate its properties and to carry on its
business as now conducted and as proposed to be conducted, and is qualified to
do business and in good standing in every jurisdiction where its assets are
located and wherever necessary to carry out its business and operations, in
each case except where failure to be so qualified or in good standing or a lack

 

47

 

of such power and
authority has not had and will not have a Material Adverse Effect.  Schedule 4.1 correctly sets forth the
ownership interest of Company and each of its Subsidiaries, as of the Closing
Date, in each of the Subsidiaries of Company identified therein.

 

4.2                               Authorization
of
Borrowing, etc.

 

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

 

B.                                    No Conflict. 
The execution, delivery and performance by Loan Parties of the Loan
Documents and the Related Agreements and the consummation of the transactions
contemplated by the Loan Documents and the Related Agreements do not and will
not (i) violate any provision of (x) any law or any governmental rule or regulation
applicable to Company or any of its Subsidiaries, (y) the Organizational
Certificate or Organizational Documents of Company or any of Company’s
Subsidiaries or (z) any order, judgment or decree of any court or other agency
of government binding on Company or any of Company’s Subsidiaries, (ii)
conflict with, result in a breach of or constitute a default under the First
Lien Credit Agreement in effect on the date hereof or the Senior Subordinated
Note Indenture or any of the documents executed in connection with any of the
foregoing, (iii) conflict with, result in a breach of or constitute a default
under any Contractual Obligation of Company or any of its Subsidiaries not
referred to in the immediately preceding clause (ii), where such conflict,
breach or default in the aggregate have had or could reasonably be expected to
have a Material Adverse Effect, (iv) result in or require the creation or
imposition of any Lien upon any of the properties or assets of  Company or any of Company’s Subsidiaries
(other than any Liens created under any of the Loan Documents in favor of
Administrative Agent on behalf of Lenders), or (v) require any approval of or
consent of any Person under any Contractual Obligation of Company or any of
Company’s Subsidiaries, except for such approvals or consents which will be
obtained on or before the Closing Date or such approvals or consents the
failure of which to obtain has not had and could not reasonably be expected to
have a Material Adverse Effect.

 

C.                                    Governmental
Consents.  The execution, delivery and performance by
Loan Parties of the Loan Documents and the Related Agreements and the
consummation of the transactions contemplated by the Loan Documents and the
Related Agreements do not and will not require any registration with, consent
or approval of, or notice to, or other action to, with or by, any federal,
state or other governmental authority or regulatory body other than any such
registrations, consents, approvals, notices or other actions (x) that have been
made, obtained or taken on or prior to the date on which such registrations,
consents, approvals, notices or other actions are required to be made, obtained
or taken, as the case may be, and are in full force and effect or (y) the
failure of which to make, obtain or take has not had and could not reasonably
be expected to have a Material Adverse Effect.

 

D.                                    Binding Obligation. 
Each of the Loan Documents and the Related Agreements has been duly
executed and delivered by each Loan Party that is a party thereto and is the legally
valid and binding obligation of such Loan Party, enforceable against such Loan
Party in accordance with its terms, subject to bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium and other similar laws
relating to or affecting creditors’ rights generally, general equitable
principles (whether considered in a proceeding in equity or at law) and an
implied covenant of good faith and fair dealing.

 

48

 

4.3                               Financial
Condition.

 

Company has
heretofore delivered to Lenders, at Lenders’ request, the following financial
statements and information:  (i) the
audited consolidated balance sheets of Company and its Subsidiaries as at
December 31, 2001 and 2002, and the related consolidated statements of income,
stockholders’ equity and cash flows of Company and its Subsidiaries for the
Fiscal Years ended December 31, 2001 and 2002, and (ii) the unaudited
consolidated balance sheet of Company and its Subsidiaries as of September 30,
2003 and the related unaudited consolidated statements of income, stockholders’
equity and cash flows of Company and its Subsidiaries for the nine months then
ended.  All such statements were
prepared in conformity with GAAP and fairly present, in all material respects,
the financial position (on a consolidated basis) of the entities described in
such financial statements as at the respective dates thereof and the results of
operations and cash flows (on a consolidated basis) of the entities described
therein for each of the periods then ended, subject, in the case of any such
unaudited financial statements, to no footnote disclosure and changes resulting
from normal year-end adjustments.

 

4.4                               No
Material Adverse Change;
No Restricted Junior Payments.

 

Since June 30,
2003, no event or change has occurred which constitutes, either in any case or
in the aggregate, a Material Adverse Effect. 
Neither Company nor any of its Subsidiaries has directly or indirectly
declared, ordered, paid or made, or set apart any sum or property for, any
Restricted Junior Payment except as permitted by subsection 6.5.

 

4.5                               Title
to Properties; Liens; Real Property.

 

A.                                    Title to
Properties; Liens.  Except to the extent that failure to do so
has not had and  could not reasonably be
expected to have a Material Adverse Effect, Company and its Subsidiaries have
(i) good, sufficient and legal title to (in the case of fee interests in real
property), (ii) valid leasehold interests in (in the case of leasehold
interests in real or personal property), or (iii) good title to (in the case of
all other personal property), all of their respective properties and
assets.  Except as permitted by this
Agreement, all such properties and assets are free and clear of Liens.

 

B.                                    Real Property. 
As of the Closing Date, Schedule 4.5 annexed hereto contains a
true, accurate and complete list of (i) all real property owned by Company or
any Domestic Subsidiary and (ii) all material leases, subleases or assignments
of leases (together with all amendments, modifications, supplements, renewals
or extensions of any thereof) affecting each Real Property Asset of any Loan
Party, regardless of whether such Loan Party is the landlord or tenant (whether
directly or as an assignee or successor in interest) under such lease, sublease
or assignment.

 

4.6                               Litigation;
Adverse Facts.

 

Except as set
forth in Schedule 4.6 annexed hereto, there are no actions, suits,
proceedings, arbitrations or governmental investigations (whether or not
purportedly on behalf of Company or any of its Subsidiaries) at law or in
equity, or before or by any federal, state, municipal or other governmental
department, commission, board, bureau, agency or instrumentality, domestic or
foreign (including any Environmental Claims) that are pending or, to the
knowledge of Company, threatened against or affecting Company or any of its
Subsidiaries or any property of Company or any of its Subsidiaries and that,
individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect.  Neither Company
nor any of its Subsidiaries is in violation of any applicable laws (including
Environmental Laws) which violations, individually or in the aggregate, could
reasonably be expected to result in a Material Adverse Effect.

 

49

 

4.7                               Payment of
Taxes.

 

Except to the
extent permitted by subsection 5.3, all tax returns and reports of Company and
its Subsidiaries required to be filed by any of them have been timely filed,
and all taxes shown on such tax returns to be due and payable and all
assessments, fees and other governmental charges upon Company and its
Subsidiaries and upon their respective properties, assets, income, businesses
and franchises which are due and payable have been paid when due and payable,
except any such taxes or charges which are being contested in good faith by
appropriate proceedings and for which adequate reserves in accordance with GAAP
have been established.

 

4.8                               Governmental
Regulation.

 

Neither
Company nor any of its Subsidiaries is subject to regulation under the Public
Utility Holding Company Act of 1935, the Federal Power Act, the Interstate
Commerce Act or the Investment Company Act of 1940.

 

4.9                               Securities
Activities.

 

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

 

4.10                        Employee
Benefit Plans.

 

A.                                    Company, each of its Subsidiaries
and each of their respective ERISA Affiliates are in substantial compliance
with all applicable material provisions and requirements of ERISA and the
regulations and published interpretations thereunder with respect to each
Employee Benefit Plan, and have performed all their obligations under each Employee
Benefit Plan except to the extent that any such noncompliance or nonperformance
could not reasonably be expected to have a Material Adverse Effect.  Each Employee Benefit Plan which is intended
to qualify under Section 401(a) of the Internal Revenue Code is so qualified
except as could not reasonably be expected to have a Material Adverse Effect.

 

B.                                    No ERISA Event has occurred or is
reasonably expected to occur that could reasonably be expected to result in a
Material Adverse Effect.

 

C.                                    Except to the extent required under
Section 4980B of the Internal Revenue Code, no Employee Benefit Plan provides
health or welfare benefits (through the purchase of insurance or otherwise) for
any retired or former employee of Company, any of its Subsidiaries or any of
their respective ERISA Affiliates, except as could not reasonably be expected
to result in a Material Adverse Effect.

 

D.                                    As of the most recent valuation date
for any Pension Plan, the amount of unfunded benefit liabilities (as defined in
Section 4001(a)(18) of ERISA), individually or in the aggregate for all Pension
Plans (excluding for purposes of such computation any Pension Plans with
respect to which assets exceed benefit liabilities) could not reasonably be
expected to have a Material Adverse Effect

 

E.                                      As of the most recent valuation date
for each Multiemployer Plan for which the actuarial report is available, the
potential liability of Company, its Subsidiaries and their respective ERISA
Affiliates for a complete withdrawal from such Multiemployer Plan (within the
meaning of Section 4203 of ERISA), when aggregated with such potential
liability for a complete

 

50

 

withdrawal from all
Multiemployer Plans, based on information available pursuant to Section 4221(e)
of ERISA could not reasonably be expected to have a Material Adverse Effect.

 

4.11                        Environmental
Protection.

 

Except as set
forth in Schedule 4.11 annexed hereto and except as to matters that, in
the aggregate, would not reasonably be expected to have a Material Adverse
Effect:

 

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

 

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

 

(iii) 
there are and, to Company’s knowledge, have been no conditions,
occurrences, or Hazardous Materials Activities at the Facilities or otherwise
relating to the operation of Company or any of its Subsidiaries which could
reasonably be expected to form the basis of an Environmental Claim against
Company or any of its Subsidiaries;

 

(iv) 
neither Company’s nor its Subsidiaries’ operations involve the
transportation, storage or disposal of Hazardous Materials so as to require a
permit for such operations under RCRA Part B (42 U.S.C. §6925 and 40 C.F.R.
270.1 et seq.) or involve transporting hazardous materials generated by a third
party for disposal; and

 

(v)compliance with all current requirements
pursuant to or under Environmental Laws will not, individually or in the
aggregate, have a reasonable possibility of giving rise to a  Material Adverse Effect.

 

4.12                        Employee
Matters.

 

There is no
strike or work stoppage in existence or threatened affecting Company or any of
its Subsidiaries that could reasonably be expected to have a Material Adverse
Effect.

 

4.13                        Solvency.

 

On the Closing
Date, after giving effect to the consummation of the Transactions, each Loan
Party is Solvent.

 

4.14                        Matters
Relating to Collateral.

 

A.                                    Creation,
Perfection and Priority of Liens.  The execution
and delivery of the Collateral Documents by Loan Parties, together with actions
taken pursuant to subsections 3.12, 5.8 and 5.9, are effective or, in the case
of subsections 5.8 and 5.9 at the time of taking such actions, will be
effective, once taken, to create in favor of Administrative Agent, for the
benefit of Lenders, as security for the respective Secured Obligations (as
defined in the applicable Collateral Document in respect of any Collateral), a
valid and perfected First Priority Lien on the Collateral covered thereby.

 

51

 

B.                                    Governmental
Authorizations.  No authorization, approval or other action
by, and no notice to or filing with, any governmental authority or regulatory
body is required for either (i) the pledge or grant by any Loan Party of the
Liens purported to be created in favor of Administrative Agent pursuant to any
of the Collateral Documents or (ii) the exercise by Administrative Agent of any
rights or remedies in respect of any Collateral (whether specifically granted
or created pursuant to any of the Collateral Documents or created or provided
for by applicable law), except for filings or recordings contemplated by
subsection 4.14A and except as may be required, in connection with the
disposition of any Pledged Collateral, by laws generally affecting the offering
and sale of securities.

 

C.                                    Absence of
Third-Party Filings.  On and after the Closing
Date, except (a) such as may have been filed in favor of Administrative Agent
or with respect to Liens permitted by this Agreement (including, without
limitation, Liens securing obligations under the First Lien Credit Agreement)
or (b) precautionary filings in respect of operating leases, (i) no effective
UCC financing statement, fixture filing or other instrument similar in effect
covering all or any part of the Collateral is on file in any filing or
recording office and (ii) no effective filing covering all or any part of the
IP Collateral is on file in the PTO, in each case other than filings in respect
of which Administrative Agent shall have received appropriate termination
statements or releases.

 

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

 

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

 

4.15                        Disclosure.

 

No
representation or warranty of any Loan Party contained in any Loan Document or
in any other document, certificate or written statement furnished to Lenders by
or on behalf of Company or any of its Subsidiaries for use in connection with
the transactions contemplated by this Agreement (including the Confidential Information
Memorandum dated November, 2003) contains any untrue statement of a material
fact or omits to state a material fact (known to Company, in the case of any
document not furnished by it) necessary in order to make the statements
contained herein or therein not materially misleading in light of the
circumstances in which the same were made. 
Any term or provision of this Section to the contrary notwithstanding,
insofar as any of the representations and warranties described above includes
assumptions, estimates, projections or opinions, no representation or warranty
is made herein with respect thereto; provided, however, that to
the extent any such assumptions, estimates, projections or opinions are based
on factual matters, Company has reviewed such factual matters and nothing has
come to its attention in the context of such review which would lead it to
believe that such factual matters were not or are not true and correct in all
material respects or that such factual matters omit to state any material fact
necessary to make such assumptions, estimates, projections or opinions not
misleading in any material respect.

 

Section 5.                                          AFFIRMATIVE COVENANTS

 

Company
covenants and agrees that, so long as any of the Commitments hereunder shall
remain in effect and until payment in full of all of the Loans and other
Obligations, unless Requisite Lenders

 

52

 

shall otherwise give prior written consent,
Company shall perform, and shall cause each of its Subsidiaries to perform, all
covenants in this Section 5.

 

5.1                               Financial Statements and Other Reports.

 

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

 

(i)  Quarterly
Financials:  as soon as available
and in any event within 60 days after the end of each Fiscal Quarter, the
consolidated balance sheet of Company and its Subsidiaries as at the end of
such Fiscal Quarter and the related consolidated statements of income and
stockholders’ equity of Company and its Subsidiaries for such Fiscal Quarter
and statements of income, stockholders’ equity and cash flows for the period
from the beginning of the then current Fiscal Year to the end of such Fiscal
Quarter, setting forth in each case in comparative form the corresponding
figures for the corresponding periods of the previous Fiscal Year (it being
understood that the foregoing requirement may be satisfied by delivery of
Company’s report as filed with the Securities and Exchange Commission on Form
10-Q, if any) together with, if any pro forma financial information has been
used in connection with determining compliance with this Agreement, a
reconciliation of such pro forma financial information with the financial
information contained in such financial statements, all in reasonable detail
and certified by the president, chief executive officer, treasurer, or chief
financial officer of Company that they fairly present, in all material
respects, the financial condition of Company and its Subsidiaries as at the
dates indicated and the results of their operations and their cash flows for
the periods indicated, subject to changes resulting from audit and normal
year-end adjustments;

 

(ii)  Year-End
Financials:  as soon as available
and in any event within 105 days after the end of each Fiscal Year, (a) the
consolidated balance sheet of Company and its Subsidiaries as at the end of
such Fiscal Year and the related consolidated statements of income,
stockholders equity and cash flows of Company and its Subsidiaries for such
Fiscal Year, setting forth in each case in comparative form the corresponding
figures for the previous Fiscal Year (it being understood that the foregoing
requirement may be satisfied by delivery of Company’s report to the Securities
and Exchange Commission on Form 10-K, if any) together with, if any pro forma financial information has been
used in connection with determining compliance with this Agreement, a
reconciliation of such pro forma
financial information with the financial information contained in such
financial statements, all in reasonable detail and reported on by independent
certified public accountants of recognized national standing selected by
Company and satisfactory to Agents, which report shall state (without
Impermissible Qualification) that such consolidated financial statements fairly
present, in all material respects, the consolidated financial position of
Company and its Subsidiaries as at the dates indicated and the results of their
operations and their cash flows for the periods indicated in conformity with
GAAP applied on a basis consistent with prior years (except as otherwise
disclosed in such financial statements) and that the examination by such
accountants in connection with such consolidated financial statements has been
made in accordance with generally accepted auditing standards;

 

(iii) 
Officer’s and Compliance Certificates:  together with each delivery of financial statements pursuant to
subdivisions (i) and (ii) above, (a) an Officer’s Certificate of Company
stating that the signers have reviewed the relevant terms of this Agreement and
that no condition or event that constitutes an Event of Default or Potential
Event of Default exists, or, if any such condition or event existed or exists,
specifying the nature and period of existence thereof and

 

53

 

what
action Company has taken, is taking and proposes to take with respect thereto
and (b) a Compliance Certificate executed by the president, chief executive
officer, treasurer, or chief financial officer of Company;

 

(iv)  Accountants’
Certification:  together with each
delivery of consolidated financial statements of Company and its Subsidiaries
pursuant to subdivision (ii) above, a written statement by the independent
certified public accountants giving the report thereon (a) stating that their
audit examination has included a review of the terms of subsections 6.1, 6.2,
6.3, 6.4, 6.5, 6.6, 6.7 and 6.8 of this Agreement as they relate to accounting
matters, and (b) stating whether, in connection with their audit examination,
any condition or event that constitutes an Event of Default or Potential Event
of Default has come to their attention and, if such a condition or event has
come to their attention, specifying the nature and period of existence thereof;
provided that such accountants shall not be liable by reason of any
failure to obtain knowledge of any such Event of Default or Potential Event of
Default that would not be disclosed in the course of their audit examination;

 

(v)  SEC
Filings and Press Releases: 
promptly upon their becoming available, copies of (a) all financial
statements, reports, notices and proxy statements sent or made available
generally by Parent or Company to its security holders (other than DLJMB or
Parent, respectively), and (b) all regular and periodic reports and all
registration statements (other than on Form S-8 or a similar form) and
prospectuses, if any, filed by Parent or any of its Subsidiaries with any
national securities exchange or with the Securities and Exchange Commission;

 

(vi)  Events
of Default, etc.: promptly and in any event within seven Business Days
after the president, chief executive officer, treasurer, assistant treasurer,
controller, chief financial officer or any other Authorized Officer of Company
obtains knowledge of any condition or event that constitutes an Event of
Default or Potential Event of Default, an Officer’s Certificate specifying the
nature and period of existence of such Event of Default or Potential Event of
Default and what action Company has taken, is taking and proposes to take with
respect thereto;

 

(vii) 
Litigation or Other Proceedings: 
(a) promptly upon the president, chief executive officer, treasurer,
assistant treasurer, controller, chief financial officer or any other
Authorized Officer of Company obtaining knowledge of (X) the institution of, or
non-frivolous threat of, any action, suit, proceeding (whether administrative,
judicial or otherwise), governmental investigation or arbitration against or
affecting Company or any of its Subsidiaries or any property of Company or any
of its Subsidiaries (collectively, “Proceedings”)
not previously disclosed in writing by Company to Lenders or (Y) any material
development in any Proceeding that, in any case:

 

(1)                                  has
a reasonable possibility of giving rise to a Material Adverse Effect; or

 

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

 

written notice
thereof and (b) promptly after request by Agents, such other information as may
be reasonably requested by Agents to enable Agents and their respective counsel
to evaluate any of such Proceedings;

 

(viii) 
ERISA Events:  promptly
upon becoming aware of the occurrence of or forthcoming occurrence of any ERISA
Event that could reasonably be expected to result in a

 

54

 

Material
Adverse Effect, a written notice specifying the nature thereof, what action
Company, any of its Subsidiaries or any of their respective ERISA Affiliates
has taken, is taking or proposes to take with respect thereto and, when known,
any action taken or threatened by the Internal Revenue Service, the Department
of Labor or the PBGC with respect thereto;

 

(ix)  ERISA
Notices:  with reasonable promptness,
copies of all notices received by Company, any of its Subsidiaries or any of
their respective ERISA Affiliates from a Multiemployer Plan sponsor concerning
an ERISA Event that could reasonably be expected to result in a Material
Adverse Effect;

 

(x)  Financial
Plans:  as soon as practicable and
in any event no later than 30 days after the beginning of each Fiscal Year, a
consolidated budget for such Fiscal Year, in the form prepared by Company
consistent with its past practices (the “Financial
Plan”);

 

(xi)  New
Subsidiaries:  promptly upon any
Person becoming a Subsidiary of Company, a written notice setting forth with
respect to such Person (a) the date on which such Person became a Subsidiary of
Company and (b) all of the data required to be set forth in Schedule 4.1
with respect to all Subsidiaries of Company (it being understood that such
written notice shall be deemed to supplement Schedule 4.1 for all
purposes of this Agreement);

 

(xii) 
UCC Search Report:  as
promptly as practicable after the date of delivery to Administrative Agent of
any UCC financing statement delivered by any Loan Party pursuant to subsection
3.12  or
5.8A, copies of completed UCC searches evidencing the proper filing, recording
and indexing of all such UCC financing statements and listing all other
effective financing statements that name such Loan Party as debtor, together
with copies of all such other financing statements not previously delivered to
Administrative Agent by or on behalf of Company or such Loan Party; and

 

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

 

5.2                               Legal
Existence,
etc.

 

Except as
permitted under subsection 6.7, Company will, and will cause each of its
Subsidiaries to, at all times preserve and keep in full force and effect its
legal existence and all rights and franchises material to its business except
where failure to keep in full force and effect such rights and franchises could
not reasonably be expected to have a Material Adverse Effect; provided, however
that neither Company nor any of its Subsidiaries shall be required to preserve
the existence of any Subsidiary if Company shall determine that the
preservation thereof is no longer desirable in the conduct of the business of
Company and its Subsidiaries, and that the loss thereof is not disadvantageous
in any material respect to Company or Lenders.

 

5.3                               Payment
of Taxes and Claims; Tax Consolidation.

 

Company will,
and will cause each of its Subsidiaries to, pay all material taxes, assessments
and other governmental charges imposed upon it or any of its properties or
assets or in respect of any of its income, businesses or franchises before any
penalty accrues thereon, and all material claims (including claims for labor,
services, materials and supplies) for sums that have become due and payable and
that by law have or may become a Lien upon any of its properties or assets,
prior to the time when any penalty or fine shall be incurred with respect
thereto; provided that no such charge or claim need be paid if it is

 

55

 

being contested in good faith by appropriate
proceedings promptly instituted and diligently conducted, so long as such
reserve or other appropriate provision, if any, as shall be required in
conformity with GAAP shall have been made therefor.

 

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

 

A.                                    Maintenance of
Properties.  Except to the extent that the failure to do
so would not reasonably be expected to have a Material Adverse Effect, Company
will, and will cause each of its Subsidiaries to, maintain or cause to be
maintained in good repair, working order and condition, ordinary wear and tear
excepted, all material properties used or useful in the business of Company and
its Subsidiaries (including all Intellectual Property) and from time to time
will make or cause to be made all appropriate repairs, renewals and
replacements thereof unless Company determines in good faith that the continued
maintenance of any of its Properties is no longer economically desirable.

 

B.                                    Insurance. 
Company will maintain or cause to be maintained, with financially sound
and reputable insurers, such public liability insurance, third party property
damage insurance, business interruption insurance and casualty insurance with
respect to liabilities, losses or damage in respect of the assets, properties
and businesses of Company and its Subsidiaries as may customarily be carried or
maintained under similar circumstances by corporations of established
reputation engaged in similar businesses, in each case in such amounts (giving
effect to self-insurance), with such deductibles, covering such risks and
otherwise on such terms and conditions as shall be customary for corporations
similarly situated in the industry. 
Without limiting the generality of the foregoing, Company will maintain
or cause to be maintained (i) flood insurance with respect to each Flood Hazard
Property that is located in a community that participates in the National Flood
Insurance Program, in each case in compliance with any applicable regulations
of the Board of Governors of the Federal Reserve System, and (ii) replacement
value casualty insurance on the Collateral under such policies of insurance,
with such insurance companies, in such amounts, with such deductibles, and
covering such risks as are at all times satisfactory to Agents in their commercially
reasonable judgment.  Each such policy
of insurance shall (a) as soon as practicable after the Closing Date but in no
event later than thirty (30) days after the Closing Date (or such longer period
as Administrative Agent shall agree) name Administrative Agent for the benefit
of Lenders as an additional insured thereunder as its interests may appear and
(b) in the case of each casualty insurance policy, contain a loss payable
clause or endorsement, satisfactory in form and substance to Administrative
Agent, that names Administrative Agent for the benefit of Lenders as a loss
payee thereunder for any covered loss in excess of $250,000 and provides for at
least 30 days prior written notice to Administrative Agent of any modification
or cancellation of such policy unless, in the case of this clause (b), if any
First Lien Credit Agreement is then in effect, the insurer will not issue such
loss payable clauses or endorsements naming Administrative Agent for the
benefit of Lenders as a loss payee, in which case Company shall deliver to
Administrative Agent such loss payable clauses or endorsements naming
Administrative Agent for the benefit of Lenders as a loss payee promptly upon
payment in full of all obligations under the First Lien Credit Agreement, termination
of all commitments to extend credit thereunder and expiration, surrender or
cash collateralization of all letters of credit thereunder.

 

C.                                    Evidence of
Insurance.  Upon request of Administrative Agent,
Company shall deliver to Administrative Agent a certificate from Company’s
insurance broker or other evidence satisfactory to it that all insurance
required to be maintained pursuant to subsection 5.4B

 

56

 

is in full force and
effect and that Administrative Agent on behalf of Lenders has been named as an
additional insured and/or a loss payee thereunder to the extent required under
subsection 5.4B.

 

5.5                               Inspection
Rights.

 

Company shall,
and shall cause each of its Subsidiaries to, permit any authorized
representatives designated by any Lender to visit and inspect any of the
properties of Company or of any of its Subsidiaries, to inspect, copy and take
extracts from its and their financial and accounting records, and to discuss
its and their affairs, finances and accounts with its and their officers and,
after notice to Company and provision of an opportunity to participate in such
discussions, independent public accountants, all upon reasonable notice and at
such reasonable times and intervals during normal business hours and as often
as may reasonably be requested, but, unless an Event of Default shall have
occurred and be continuing, not more frequently than once in each Fiscal Year,
unless otherwise consented to by Company. 
Subject to subsection 9.2, the cost and expenses of each such visit
shall be borne by the applicable Lender.

 

5.6                               Compliance
with Laws,
etc.

 

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

 

B.                                    Environmental
Covenant.

 

Company will
and will cause each of its Subsidiaries to:

 

(i) 
Use and operate all of its Facilities and properties in compliance with
all Environmental Laws, keep all necessary permits, approvals, certificates,
licenses and other Governmental Authorizations relating to environmental
matters in effect and remain in compliance therewith, and handle all Hazardous
Materials in compliance with all applicable Environmental Laws, in each case
except where the failure to comply with the terms of this clause would not
reasonably be expected to have a Material Adverse Effect;

 

(ii) 
Promptly notify Agents and provide copies of all written claims,
complaints, notices or inquiries relating to the condition of its Facilities or
relating to compliance with Environmental Laws which relate to environmental
matters which would have, or would reasonably be expected to have, a Material
Adverse Effect, and promptly cure and have dismissed with prejudice any
material actions and proceedings relating to compliance with Environmental
Laws, except to the extent being diligently contested in good faith by
appropriate proceedings and for which adequate reserves in accordance with GAAP
have been set aside on its books; and

 

(iii) 
Provide such information and certificates which Agents may reasonably
request from time to time to evidence compliance with this Section 5.6.

 

5.7                               Execution of Subsidiary Guaranty and Personal Property
Collateral Documents
by Certain Subsidiaries and Future Subsidiaries; IP Collateral.

 

A.                                    Execution of
Subsidiary Guaranty and Personal Property Collateral Documents. In the event that any Person
becomes a Subsidiary of Company after the Closing

 

57

 

Date (other than a
Foreign Subsidiary and other than a Domestic Subsidiary that is a
Non-Wholly-Owned Subsidiary), Company will promptly notify Administrative Agent
of that fact and cause such Subsidiary to execute and deliver to Administrative
Agent a supplement to the Pledge Agreement, a counterpart of the Subsidiary
Guaranty and an acknowledgement to the Security Agreement and to take all such
further actions and execute all such further documents and instruments
(including actions, documents and instruments comparable to those described in
subsection 3.12) as may be
necessary or, in the opinion of Agents, desirable to create in favor of
Administrative Agent, for the benefit of Lenders, a valid and perfected First
Priority Lien on all of the personal and mixed property assets of such
Subsidiary described in the applicable forms of Collateral Documents; provided
that no such Subsidiary shall be required to pledge pursuant to the Pledge
Agreement more than 65% of the total combined voting power of all classes of
securities of any Foreign Subsidiary held by such Subsidiary entitled to vote.

 

B.                                    Subsidiary Charter
Documents, Legal Opinions, Etc.  Company shall
deliver to Administrative Agent, together with such Loan Documents, (i)
certified copies of such Subsidiary’s Organizational Certificate, together with
a good standing certificate from the Secretary of State of the jurisdiction of
its incorporation, organization or formation, as applicable, and each other
state in which such Person is qualified as a foreign entity to do business and,
to the extent generally available, a certificate or other evidence of good
standing as to payment of any applicable franchise or similar taxes from the
appropriate taxing authority of each of such jurisdictions, each to be dated a
recent date prior to their delivery to Administrative Agent, (ii) a copy of
such Subsidiary’s Organizational Document, certified by its secretary or an
assistant secretary as of a recent date prior to their delivery to
Administrative Agent, (iii) a certificate executed by the secretary or an
assistant secretary of such Subsidiary as to (a) the fact that the attached
Organizational Authorizations of such Subsidiary approving and authorizing the
execution, delivery and performance of such Loan Documents are in full force
and effect and have not been modified or amended and (b) the incumbency and
signatures of the officers of such Subsidiary executing such Loan Documents,
and (iv) a favorable opinion of counsel to such Subsidiary, in form and
substance satisfactory to Agents and their respective counsel, as to (a) the
due organization and good standing of such Subsidiary, (b) the due
authorization, execution and delivery by such Subsidiary of such Loan
Documents, (c) the enforceability of such Loan Documents against such
Subsidiary and (d) such other matters (including matters relating to the
creation and perfection of Liens in any Collateral pursuant to such Loan
Documents) as Agents may reasonably request, all of the foregoing to be
satisfactory in form and substance to Agents and their respective counsel.

 

C.                                    IP Collateral. 
If any Subsidiary (other than a Foreign Subsidiary and Domestic
Subsidiaries that are Non-Wholly-Owned Subsidiaries) becomes an owner of any
Intellectual Property after the Closing Date, Company shall cause such Subsidiary
to promptly execute and deliver to Administrative Agent an acknowledgement to
the Security Agreement and all cover sheets and executed grants of trademark
security interest, grants of patent security interest and grants of copyright
security interest and such other documents or instruments required to be filed
with the PTO and the CO as Administrative Agent shall deem appropriate and take
such further action and execute such further documents and instruments as may
be necessary, or in the opinion of Administrative Agent, desirable to create in
favor of Administrative Agent, for the benefit of Lenders, a valid and
perfected First Priority Lien on such Intellectual Property.

 

5.8                               Future Leased Property and Future Acquisitions of Real
Property; Future
Acquisition of Other Property.

 

58

 

A.                                    In connection with any Leasehold
Property, Company shall, and shall cause each of its Subsidiaries (other than
Foreign Subsidiaries and Domestic Subsidiaries that are Non-Wholly-Owned
Subsidiaries) to use its (and their) commercially reasonable efforts (which
shall not require the expenditure of cash (other than the payment of the
respective attorneys fees of Company and the lessor) or the making of any
material concessions under the relevant lease) to deliver to Administrative
Agent a waiver for the benefit of Administrative Agent in form and substance
reasonably satisfactory to Administrative Agent executed by the lessor of any
real property that is to be leased by Company or such Subsidiary for a term in
excess of one year in any state which by statute grants such lessor a
“landlord’s” (or similar) Lien which is superior to Administrative Agent’s and
which grants to Administrative Agent a license to enter the leased property and
remove any and all personal property, if the value of such personal property of
Company or its Subsidiaries to be held at such leased property exceeds (or it
is anticipated that the value of such personal property will, at any point in
time during the term of such leasehold term, exceed) $2,000,000.

 

B.                                    In the event that Company or any of
its Subsidiaries (other than Foreign Subsidiaries or Domestic Subsidiaries that
are Non-Wholly-Owned Subsidiaries) shall acquire any real property having a
value as determined in good faith by Administrative Agent in excess of
$2,000,000 (or in the case of leased property, in the event that Company is
able to deliver the waivers and consents described in subsection 5.8C in
connection with the leases described therein), Company or the applicable
Subsidiary shall, promptly after such acquisition or consent, execute a
Mortgage and provide Administrative Agent with (i) evidence of the completion
(or satisfactory arrangements for the completion) of all recordings and filings
of such Mortgage as may be necessary or, in the reasonable opinion of
Administrative Agent, desirable effectively to create a valid, perfected First
Priority Lien, subject to the Liens permitted by subsection 6.2, against the
property purported to be covered thereby, (ii) mortgagee’s title insurance
policy or policies in favor of Administrative Agent and Lenders in amounts and
in form and substance and issued by insurers, reasonably satisfactory to
Agents, with respect to the property purported to be covered by such Mortgage,
insuring that title to such property is indefeasible and that the interests
created by the Mortgage constitute valid First Priority Liens thereon free and
clear of all defects and encumbrances other than as permitted by subsection 6.2
or as approved by Agents, and such policies shall include, to the extent
available, such endorsements as Agents shall reasonably request and shall be
accompanied by evidence of the payment in full of all premiums thereon, and
(iii) such other approvals, opinions, or documents as Agents may reasonably
request.

 

C.                                    As soon as reasonably practical
after the Closing Date, Company or its applicable Subsidiary shall, in the
event Company or any of its Subsidiaries (other than Foreign Subsidiaries or
Domestic Subsidiaries that are Non-Wholly-Owned Subsidiaries) shall become a
lessee under any lease of real property covering 10,000 square feet of building
space and having an unexpired lease term (including options to extend such
lease term) of three years or longer, Company or the applicable Subsidiary
shall, use its commercially reasonable efforts (which shall not require the
expenditure of cash (other than the payment of the respective attorneys fees of
Company and the lessor) or the making of any material concessions under the
relevant lease) to cause the lessor to agree (during the negotiation of such
lease if such lease is entered into after the Closing Date), for the benefit of
Administrative Agent (i) to the matters set forth in subsection 5.8A, (ii) that
without any further consent of such lessor or any further action on the part of
the Loan Party holding the lessee’s interest in such property, such lessee’s
interest in such property may be encumbered pursuant to a Mortgage and may be
assigned to the purchaser at a foreclosure sale or in a transfer in lieu of
such a sale (and to a subsequent third party assignee if any Agent, any Lender,
or an Affiliate of either so acquires such lessee’s interest in such property),
and (iii) that such lessor shall not terminate such lease as a result of a
default by such Loan Party

 

59

 

thereunder without
first giving Agents notice of such default and at least 60 days (or, if such
default cannot reasonably be cured by Agents within such period, such longer
period as may reasonably be required) to cure such default.

 

5.9                               PTO
and CO Cover Sheets,
Etc.

 

Company will
deliver to Administrative Agent no later than ten (10) days after the Closing
Date (or such longer period as Administrative Agent shall agree) instruments or
documents, in appropriate form for filing with the PTO and/or the CO,
sufficient to create and perfect a security interest in all IP Collateral owned
as of the Closing Date by Company and its Subsidiaries (other than Foreign
Subsidiaries and Domestic Subsidiaries that are Non-Wholly-Owned Subsidiaries),
which instruments or documents shall reflect that such security interest is
junior in priority to the security interest granted in such IP Collateral under
the First Lien Credit Agreement while any First Lien Credit Agreement is then
in effect.

 

5.10                        Mortgages.

 

A.                                    With respect to the Closing Date
Mortgaged Property, as soon as practicable after the Closing Date but in no
event later than thirty (30) days after the Closing Date (or such longer period
as Administrative Agent shall agree), Company shall deliver to Administrative
Agent counterparts of the Mortgage covering the Closing Date Mortgaged
Property, dated as of the date of such delivery, duly executed by the
applicable Subsidiary in appropriate form for recording, together with such
other documents and instruments in appropriate form for filing of such Mortgage
as may be necessary or, in the reasonable opinion of Administrative Agent,
desirable effectively to create a valid, perfected, First Priority Lien,
subject to Liens permitted by subsection 6.2, against the properties purported
to be covered thereby.

 

B.                                    As soon as practicable after
delivery of the Mortgage pursuant to subsection 5.10A, Company shall deliver to
Administrative Agent (i) mortgagee’s title insurance policies in favor of
Agents and Lenders in amounts and in form and substance and issued by insurers,
reasonably satisfactory to Administrative Agent, with respect to the property
purported to be covered by such Mortgage, insuring that title to such property
is indefeasible and that the interests created by such Mortgage constitute
valid First Priority Liens thereon free and clear of all defects and
encumbrances other than as permitted by subsection 6.2 or as approved by Administrative
Agent, and such policies shall also include, to the extent available, such
endorsements as Administrative Agent shall reasonably request and shall be
accompanied by evidence of the payment in full of all premiums thereon, unless,
in the case of this clause (i), if any First Lien Credit Agreement is then in
effect, the insurer will not issue such title insurance policies in favor of
Agents and Lenders described above, in which case Company shall deliver to
Administrative Agent such title insurance policies and other items described
above promptly upon payment in full of all obligations under the First Lien
Credit Agreement, termination of all commitments to extend credit thereunder
and expiration, surrender or cash collateralization of all letters of credit
thereunder, and (ii) such other approvals, opinions or documents as
Administrative Agent may reasonably request.

 

Section 6.                                          NEGATIVE COVENANTS

 

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

 

60

 

6.1                               Indebtedness.

 

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

 

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

 

(ii) 
Company and its Subsidiaries may become and remain liable with respect
to any obligations constituting Indebtedness and actually arising pursuant to
Contingent Obligations permitted pursuant to subsection 6.4;

 

(iii) 
Company and its Subsidiaries may become and remain liable with respect
to Indebtedness in respect of Capital Leases and other purchase money
Indebtedness incurred to finance the acquisition or improvement of fixed
assets, in an aggregate amount not exceeding $7,500,000;

 

(iv) 
Intercompany Indebtedness (i) of Company or any Domestic Subsidiary of
Company owing to Company or any Subsidiary of Company, and (ii) of any Foreign
Subsidiary of Company owing to (x) any other Foreign Subsidiary or (y) Company
or any Domestic Subsidiary of Company; provided that in respect of any
such Indebtedness (other than any such Indebtedness incurred to finance a
Permitted Acquisition) described in this clause (ii)(y), the aggregate
principal amount of such Indebtedness, when taken together with the aggregate
amount at such time of all outstanding Investments in Foreign Subsidiaries made
pursuant to subsection 6.3(xii), shall not exceed at any time outstanding
$10,000,000; provided  further that (x) if requested by
Administrative Agent, all intercompany Indebtedness shall be evidenced by
promissory notes which shall be delivered to the First Lien Collateral Agent
pursuant to the Intercreditor Agreement (to the extent then in effect) or the
applicable intercreditor agreement then in effect (if any) or, if no First Lien
Credit Agreement is then in effect, to Administrative Agent, as Collateral
hereunder, and (y) all intercompany Indebtedness owed by Company or by a
Subsidiary Guarantor to any Subsidiary of Company that is not a Subsidiary
Guarantor shall be subordinated in right of payment to the payment in full of
the Obligations pursuant to the terms of an intercompany subordination
agreement in the form of Exhibit XIII attached hereto;

 

(v) 
Company and its Subsidiaries, as applicable, may remain liable with
respect to Indebtedness described in Schedule 6.1 annexed hereto and
refinancings and replacements thereof in a principal amount not exceeding the
principal amount of the indebtedness so refinanced or replaced and with an
average life to maturity of not less than the then average life to maturity of
the Indebtedness so refinanced or replaced;

 

(vi) 
Company may become and remain liable with respect to up to $100,000,000
in aggregate principal amount of Indebtedness evidenced by the Senior
Subordinated Notes;

 

(vii) 
Indebtedness of Tri-Star Electronics Europe SA incurred pursuant to a
working capital facility not to exceed U.S.$2,000,000 (or the equivalent
thereof in Swiss Francs) at any time outstanding (except if such excess is
caused solely by changes in exchange rates and is eliminated within five
Business Days of its occurrence) and other Indebtedness of Foreign Subsidiaries
in an aggregate outstanding principal amount which does not exceed $10,000,000
at any time outstanding;

 

(viii) 
Assumed Indebtedness of Company and its Subsidiaries in an aggregate
principal amount at any time outstanding not to exceed $5,000,000;

 

61

 

(ix) 
Company and its Subsidiaries may become and remain liable with respect
to other Indebtedness in an aggregate principal amount not to exceed
$10,000,000 at any time outstanding;

 

(x)  Company may become and remain liable with
respect to Permitted Indebtedness; provided that Company causes an opinion of
counsel in form and substance reasonably satisfactory to Administrative Agent
to be delivered to Administrative Agent to the effect that the incurrence and
performance of the terms of the Permitted Indebtedness do not conflict with or
violate the terms of this Agreement, the First Lien Credit Agreement or the
Senior Subordinated Note Indenture at or prior to the incurrence of the
Permitted Indebtedness; provided further that (A) after giving effect to the
incurrence of Permitted Indebtedness, Company and its Subsidiaries shall be in
pro forma compliance with the provisions of Section 6 of this Agreement; (B) an
aggregate amount equal to (I) at least 80% of Net Securities Proceeds from the
issuance of Permitted Indebtedness shall be applied to the permanent prepayment
of term Indebtedness under the First Lien Credit Agreement (and, if necessary,
after all such term Indebtedness has been repaid in full, to the permanent
reduction of revolving Indebtedness thereunder) and an aggregate amount equal
to the remaining Net Securities Proceeds from the issuance of Permitted
Indebtedness shall be applied to the repayment of outstanding revolving loans
under the First Lien Credit Agreement (to the extent any First Lien Credit Agreement
is then in effect) no later than the first Business Day following the receipt
thereof (but with no concurrent commitment reduction), or (II) if no First Lien
Credit Agreement is then in effect, the Net Securities Proceeds shall be used
for working capital and general and other corporate purposes of Company and its
Subsidiaries; (C) Permitted Indebtedness in respect of the Incremental Facility
shall be incurred not more than one time during the term of this Agreement, and
other Permitted Indebtedness shall be incurred not more than one time during
the term of this Agreement; and (D), in the case of Permitted Indebtedness
issued pursuant to the Incremental Facility, such Permitted Indebtedness shall
be issued on terms to be agreed upon by Company, Agents and the lenders under
such Incremental Facility (which may be Lenders and/or other Eligible
Assignees), and the Incremental Facility may be implemented and conforming
amendments made to this Agreement and other Loan Documents to reflect its
implementation and the terms thereof without the consent of any Lender not a
lender under such Incremental Facility, including, without limitation,
conforming amendments: (w) to provide for the Incremental Facility to share
ratably in the Collateral and in the other benefits of this Agreement and the
other Loan Documents (including the accrued interest in respect thereof) with
the Loans made on the Closing Date, (x) to Sections 1 and 2 to provide, among
other things, for the Incremental Facility to share ratably with the Loans made
on the Closing Date in the application of prepayments, (y) to provide an
amortization schedule for the Incremental Facility (provided that no
amortization shall be paid in respect of the Incremental Facility prior to the
Maturity Date), and (z) to include appropriately the Lenders holding the
Incremental Facility in any determination of Lenders, Requisite Lenders and Pro Rata Share and the
loans constituting the Incremental Facility as Loans, it being understood that
no Lender or Agent is committed or obligated to participate in such Incremental
Facility unless it agrees to do so in the document or agreement implementing
such Incremental Facility; notwithstanding anything in this Agreement expressed
or implied to the contrary (including, without limitation in subsection 9.6),
nothing herein shall be construed to require consent from Lenders that are not
lenders under such Incremental Facility to the incurrence of Indebtedness under
the Incremental Facility in compliance with this subsection 6.1(x), and this
subsection 6.1(x) shall supersede any provisions in subsection 9.6 to the
contrary; and

 

(xi) 
Company and the Subsidiary Guarantors may become and remain liable with
respect to obligations owed under the First Lien Credit Agreement; provided
that the aggregate outstanding principal amount of Indebtedness under this
clause (xi) plus the aggregate
amount of letters of credit outstanding under subsection 6.4(ii)(A) (and
undrawn) shall not exceed the lesser

 

62

 

of
(a) the then aggregate amount of outstanding principal amounts of Indebtedness
and unutilized commitments in respect of the First Lien Credit Agreement, plus $10,000,000, plus the Net Senior Debt Ratio Amount, and
(b) $[81,000,000]  plus
$10,000,000 plus the Net Senior
Debt Ratio Amount, minus  the aggregate amount of all repayments and
prepayments of any term Indebtedness thereunder, and the aggregate amount of
all permanent reductions of revolving credit commitments thereunder.

 

6.2                               Liens
and Related Matters.

 

A.                                    Prohibition on
Liens.  Company shall not, and shall not permit any
of its Subsidiaries to, directly or indirectly, create, incur, assume or permit
to exist any Lien on or with respect to any property or asset of any kind
(including any document or instrument in respect of goods or accounts
receivable) of Company or any of its Subsidiaries, whether now owned or
hereafter acquired, or any income or profits therefrom, except:

 

(i) 
Permitted Encumbrances;

 

(ii) 
Liens granted pursuant to the Collateral Documents, and Liens created
under the First Lien Credit Agreement securing payment of any obligations in
respect of Hedge Agreements owed to any Person that, at the time such Hedge
Agreement was entered into, was a lender or an Affiliate of a lender under the
First Lien Credit Agreement;

 

(iii) 
Liens existing as of the Original Closing Date and described in Schedule
6.2 annexed hereto and Liens securing extensions, renewals or replacements
of the Indebtedness or other obligations which such identified Liens secure; provided
that no such extension, renewal or replacement shall increase the obligations
secured by such Lien or extend such Lien to additional assets;

 

(iv) 
Liens securing Indebtedness permitted pursuant to subsection 6.1(iii); provided
that the principal amount of such Indebtedness does not exceed at the time of
acquisition or leasing of the related asset the fair market value of the asset
so acquired or leased and that such Lien is limited solely to the asset so
acquired or leased in connection with the incurrence of such Indebtedness;

 

(v) 
Liens on the assets of any Foreign Subsidiary securing the repayment of
the Indebtedness permitted pursuant to subsection 6.1(iv)(ii), 6.1(vii) or
6.1(ix);

 

(vi) 
Liens in the nature of trustees’ Liens granted pursuant to any indenture
governing any Indebtedness permitted by subsection 6.1, in each case in favor
of the trustee under such indenture and securing only obligations to pay
compensation to such trustee, to reimburse its expenses and to indemnify it
under the terms thereof;

 

(vii) 
Liens of sellers of goods to Company and any of its Subsidiaries arising
solely under Article 2 of the UCC or similar provisions of applicable law in
the ordinary course of business, covering only the goods sold and securing only
the unpaid purchase price for such goods and related expenses;

 

(viii) 
Liens securing Assumed Indebtedness of Company and its Subsidiaries
permitted pursuant to subsection 6.1(viii), provided, however,
that (i) any such Liens attach only to the property of the Subsidiary acquired,
or the property acquired, in connection with such Assumed Indebtedness and
shall not attach to any assets of Company or any of its Subsidiaries
theretofore

 

63

 

existing
and (ii) the Assumed Indebtedness and other secured Indebtedness of Company and
its Subsidiaries secured by any such Lien shall not exceed 100% of the fair
market value of the assets being acquired in connection with such Assumed
Indebtedness;

 

(ix) 
Liens securing reimbursement obligations in respect of trade letters of
credit, which Liens are limited to the goods purchased with, or whose purchase
was supported by, such letters of credit;

 

(x) 
Other Liens securing Indebtedness and other obligations in an aggregate
amount not to exceed $7,500,000 at any time outstanding;

 

(xi)Liens securing Permitted Indebtedness not
incurred pursuant to the Incremental Facility, such Liens to be subordinated to
the Liens securing the Obligations subject to an intercreditor agreement in
form and substance reasonably satisfactory to Administrative Agent; and

 

(xii)Liens securing obligations under the
First Lien Credit Agreement, such Liens to be subject to the Intercreditor
Agreement or, in the case of any First Lien Credit Agreement described in
clause (ii) of the definition thereof, an intercreditor agreement substantially
similar to the Intercreditor Agreement or otherwise reasonably satisfactory to
Administrative Agent; provided that such Liens shall also secure the
Obligations.

 

Nothing in
this subsection 6.2 shall prohibit the sale, assignment, transfer, conveyance
or other disposition of any Margin Stock owned by Company or any of its
Subsidiaries at its fair value (as determined in good faith by its Board of
Directors) so long as proceeds are held as Cash or Cash Equivalents or the
creation, incurrence, assumption or existence of any Lien on or with respect to
any Margin Stock.

 

B.                                    No Further Negative
Pledges.  Except (x) with respect to specific property
encumbered to secure payment of particular Indebtedness or to be sold pursuant
to an executed agreement with respect to an Asset Sale and (y) customary
limitations in respect of Company and its Subsidiaries contained in any
agreement with respect to Indebtedness incurred in reliance on subsection
6.1(ii), (iv), (vi), (vii), (viii), (x) or (xi), and (z) restrictions or
limitations contained in any partnership agreement or joint venture agreement
to which Company or any of its Subsidiaries are a party on the ability to
create or assume Liens on any assets of the relevant partnership or joint
venture, neither Company nor any of its Subsidiaries shall enter into any
agreement (other than an agreement prohibiting only the creation of Liens
securing Subordinated Indebtedness) prohibiting the creation or assumption of
any Lien upon any of its properties or assets, whether now owned or hereafter
acquired.

 

C.                                    No Restrictions on
Subsidiary Distributions to Company or Other Subsidiaries. 
Except (x) as provided herein, (y) customary limitations and
prohibitions in any agreement with respect to Indebtedness incurred in reliance
on subsection 6.1(iv)(ii)(x), (vi), (vii), (viii), (x) or (xi) and (z) any such
encumbrance or restriction contained in any partnership or joint venture
agreement to which Company or any of its Subsidiaries is a party, Company will
not, and will not permit any of its Subsidiaries to, create or otherwise cause
or suffer to exist or become effective any consensual encumbrance or
restriction of any kind on the ability of any such Subsidiary to (i) pay
dividends or make any other distributions on any of such Subsidiary’s capital
stock owned by Company or any other Subsidiary of Company, (ii) repay or prepay
any Indebtedness owed by such Subsidiary to Company or any other Subsidiary of
Company, or (iii) make loans or advances to Company or any other Subsidiary of
Company.

 

64

 

6.3                               Investments.

 

Company shall
not, and shall not permit any of its Subsidiaries to, directly or indirectly,
make or own any Investment in any Person, except:

 

(i) 
Company and its Subsidiaries may make and own Investments in Cash
Equivalents (as determined on the date of acquisition thereof);

 

(ii) 
(a) Company and its Subsidiaries may continue to own the Investments
owned by them as of the Closing Date in any Subsidiaries of Company; (b)
Company and its Domestic Subsidiaries may make additional Investments in
Company or Subsidiary Guarantors subject to compliance with subsections 5.7 and
5.8; and (c) any Foreign Subsidiary may make additional Investments in any
other Foreign Subsidiary;

 

(iii) 
Company and its Subsidiaries may make intercompany loans to the extent
permitted under subsection 6.1(iv) and incur Contingent Obligations permitted
by subsection 6.4;

 

(iv) 
Company and its Subsidiaries may continue to own the Investments owned
by them as of the Original Closing Date and described in Schedule 6.3
annexed hereto and extensions or renewals thereof, provided that no such
extension or renewal shall be made in reliance on this clause (v) if it would
(x) increase the amount of such Investment at the time of such renewal or
extension or (y) result in a Potential Event of Default or an Event of Default
hereunder;

 

(v) 
Company and its Subsidiaries may make and own Investments received in
connection with Asset Sales permitted pursuant to subsection 6.7(x);

 

(vi) 
Investments constituting Consolidated Capital Expenditures (and any
capital expenditures excluded from the definition of Consolidated Capital
Expenditures pursuant to clause (y) thereof);

 

(vii) 
Investments made by Company or any of its Subsidiaries in Permitted
Acquisitions in accordance with subsection 6.7(vi);

 

(viii) 
Investments arising under or in connection with Interest Rate Agreements
and Currency Agreements entered into in the ordinary course of business and not
for speculative purposes;

 

(ix) 
Company and its Subsidiaries may make and own Investments received in
connection with the bankruptcy or reorganization or suppliers and customers and
in settlement of delinquent obligations of and other disputes with customers
and suppliers arising in the ordinary course of business;

 

(x) 
Company and its Subsidiaries may (x) continue to own Investments in the
form of loans made prior to the Closing Date to officers, directors and
employees of Company and its Subsidiaries for the sole purpose of purchasing
common stock of Parent (or purchases of such loans made by others), and (y)
make and own Investments in the form of loans to Global Technology Partners
made after the First Closing Date in an aggregate principal amount not to
exceed $1,000,000 for the sole purpose of purchasing common stock of Parent;

 

(xi) 
Company and its Subsidiaries may make and own Investments solely from the
proceeds of capital contributions by Parent to Company or sales of equity
Securities by Company

 

65

 

to
Parent, in each case only to the extent proceeds from such capital contribution
or sale (x) are not required to be applied to repay the Loans pursuant to
subsection 2.4(B)(ii)(c), (y) arise from the issuance by Parent of its equity
Securities, and (z) are received after the Closing Date for the purpose of
making an Investment identified in a notice delivered to Agents on or prior to
the date such capital contribution or sale or repayment is made, so long as
immediately before and after giving effect to any such Investment, no Potential
Event of Default or Event of Default has occurred and is continuing; and

 

(xii) 
Company and its Subsidiaries may make and own other Investments in an
aggregate amount not to exceed at any time $5,000,000; provided that such
Investments are with respect to businesses similar or related to the businesses
engaged in by Company and its Subsidiaries.

 

6.4                               Contingent
Obligations.

 

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

 

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

 

(ii) 
Company and its Subsidiaries may become and remain liable with respect
to Contingent Obligations in respect of (A) letters of credit issued under the
First Lien Credit Agreement and (B) other letters of credit in an aggregate
amount at any time not to exceed $2,000,000 for Company and its Domestic
Subsidiaries and $2,000,000 for Company’s Foreign Subsidiaries;

 

(iii) 
Company and its Subsidiaries may become and remain liable with respect
to Contingent Obligations under Interest Rate Agreements and Currency
Agreements entered into in the ordinary course of business and not for
speculative purposes;

 

(iv) 
Company and its Domestic Subsidiaries may become and remain liable with
respect to Contingent Obligations in respect of any Indebtedness of Company or
any of its Domestic Subsidiaries permitted by subsection 6.1; provided
that any such Contingent Obligations in respect of the Subordinated
Indebtedness permitted pursuant to subsection 6.1(vi) are subordinated to the
payment of the Obligations to the same extent as such Subordinated
Indebtedness;

 

(v) 
Company and its Subsidiaries, as applicable, may remain liable with
respect to Contingent Obligations described in Schedule 6.4 annexed
hereto and extensions or renewals thereof, so long as such extension or renewal
does not increase the amount of the Contingent Obligation being renewed or
extended, as the case may be;

 

(vi) 
Company and its Subsidiaries may become and remain liable with respect
to other Contingent Obligations; provided that the maximum aggregate
liability, contingent or otherwise, of Company and its Subsidiaries in respect
of all such Contingent Obligations shall at no time exceed $2,000,000.

 

6.5                               Restricted
Junior Payments.

 

Company shall
not, and shall not permit any of its Subsidiaries to, directly or indirectly,
declare, order, pay, make or set apart any sum for any Restricted Junior
Payment; provided that so long as no

 

66

 

Potential Event of Default or Event of
Default shall have occurred and be continuing or would occur as a result
thereof (except in the case of Restricted Junior Payments permitted by
subsections 6.5(i) and (iii) below):

 

(i) 
Company may (a) make payments of regularly scheduled interest in respect
of the Senior Subordinated Notes, in each case in accordance with the terms of
and to the extent required by (and subject to the subordination provisions
contained therein) the Senior Subordinated Indenture, and (b) to make payments
to the holders of the Senior Subordinated Notes in the form of equity
Securities that the subordination provisions applicable thereto permit such
holders to accept prior to the repayment in full of the Obligations;

 

(ii) 
Company may make dividend payments to Parent to the extent necessary to
permit Parent to (x) pay corporate and other general administrative expenses
(including fees in respect of advisory services) in an aggregate amount which
does not exceed $1,000,000 in any Fiscal Year and (y) make payments in respect
of taxes imposed on Company and its Subsidiaries; and

 

(iii) 
Company may purchase, redeem, or otherwise acquire or retire
Subordinated Indebtedness in an amount up to but not exceeding $20,000,000 (as
calculated from the First Closing Date) with proceeds from the issuance of
Subordinated Indebtedness permitted by subsection 6.1 or equity Securities of
Company.

 

6.6                               Financial
Covenants.

 

A.                                    Maximum Net Senior
Debt Ratio.  Company shall not permit the Net Senior Debt
Ratio as of the last day of any Fiscal Quarter, beginning with the Fiscal
Quarter ending March 31, 2004,
occurring during any period set forth below to exceed the correlative ratio
indicated:

 

	
  Period

  	
   

  	
  Maximum Net
  Senior

  Debt Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1st Fiscal
  Quarter, 2004

  	
   

  	
  7.75

  	
  x

  
	
   

  	
   

  	
   

  	
   

  
	
  2nd Fiscal
  Quarter, 2004

  	
   

  	
  8.45

  	
  x

  
	
   

  	
   

  	
   

  	
   

  
	
  3rd Fiscal
  Quarter, 2004

  	
   

  	
  8.25

  	
  x

  
	
   

  	
   

  	
   

  	
   

  
	
  4th Fiscal
  Quarter, 2004

  	
   

  	
  7.10

  	
  x

  
	
   

  	
   

  	
   

  	
   

  
	
  1st Fiscal
  Quarter, 2005

  	
   

  	
  6.65

  	
  x

  
	
   

  	
   

  	
   

  	
   

  
	
  2nd Fiscal
  Quarter, 2005

  	
   

  	
  6.30

  	
  x

  
	
   

  	
   

  	
   

  	
   

  
	
  3rd Fiscal
  Quarter, 2005 

  	
   

  	
  6.05 

  	
  x 

  
	
   

  	
   

  	
   

  	
   

  
	
  4th Fiscal
  Quarter, 2005

  	
   

  	
  6.00

  	
  x

  
	
   

  	
   

  	
   

  	
   

  
	
  1st Fiscal
  Quarter, 2006 

  	
   

  	
  5.80 

  	
  x 

  
	
   

  	
   

  	
   

  	
   

  
	
  2nd Fiscal
  Quarter, 2006

  	
   

  	
  5.60

  	
  x

  
	
   

  	
   

  	
   

  	
   

  
	
  3rd Fiscal
  Quarter, 2006

  	
   

  	
  5.30

  	
  x

  
	
   

  	
   

  	
   

  	
   

  
	
  4th Fiscal
  Quarter, 2006

  	
   

  	
  5.10

  	
  x

  
	
   

  	
   

  	
   

  	
   

  
	
  1st Fiscal
  Quarter, 2007 and thereafter

  	
   

  	
  5.00

  	
  x

  

 

67

 

B.                                    Minimum Interest
Coverage Ratio.  Company shall not permit the Consolidated
Interest Coverage Ratio as of the last day of any Fiscal Quarter, beginning
with the Fiscal Quarter ending March
31, 2004, occurring during any period set forth below to be less than the
correlative ratio indicated:

 

	
  Period

  	
   

  	
  Minimum
  Consolidated

  Interest Coverage Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1st Fiscal Quarter, 2004

  	
   

  	
  0.85

  	
  x

  
	
   

  	
   

  	
   

  	
   

  
	
  2nd Fiscal Quarter, 2004 through

  3rd Fiscal Quarter, 2004

  	
   

  	
  0.80

  	
  x

  
	
   

  	
   

  	
   

  	
   

  
	
  4th Fiscal Quarter, 2004

  	
   

  	
  0.85

  	
  x

  
	
   

  	
   

  	
   

  	
   

  
	
  1st Fiscal Quarter, 2005

  	
   

  	
  0.90

  	
  x

  
	
   

  	
   

  	
   

  	
   

  
	
  2nd Fiscal Quarter, 2005

  	
   

  	
  0.95

  	
  x

  
	
   

  	
   

  	
   

  	
   

  
	
  3rd Fiscal Quarter, 2005 through

  1st Fiscal Quarter, 2006

  	
   

  	
  1.00

  	
  x

  
	
   

  	
   

  	
   

  	
   

  
	
  2nd Fiscal Quarter, 2006 through

  3rd Fiscal Quarter, 2006

  	
   

  	
  1.05

  	
  x

  
	
   

  	
   

  	
   

  	
   

  
	
  4th Fiscal Quarter, 2006 and thereafter

  	
   

  	
  1.10

  	
  x

  

 

6.7                               Restriction on Fundamental Changes; Asset Sales and Acquisitions.

 

Company shall
not, and shall not permit any of Company’s Subsidiaries to, enter into any
transaction of merger or consolidation, or liquidate, wind-up or dissolve
itself (or suffer any liquidation or dissolution), or convey, sell, lease or
sub-lease (as lessor or sublessor), transfer or otherwise dispose of, in one
transaction or a series of transactions, all or any part of its business,
property or assets, whether now owned or hereafter acquired, or acquire by
purchase or otherwise all or substantially all the business, property or fixed
assets of, or stock or other evidence of beneficial ownership of, any Person or
any division or line of business of any Person, except:

 

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

 

68

 

Foreign
Subsidiary or, so long as the surviving corporation of such merger is Company
or a Domestic Subsidiary, with or into Company or any Domestic Subsidiary, or
be liquidated, wound up or dissolved, or all or any part of its business,
property or assets may be conveyed, sold, leased, transferred or otherwise
disposed of in one transaction or a series of transactions, to Company, a
Subsidiary Guarantor or another Foreign Subsidiary; provided that,
notwithstanding the above, a Subsidiary may only liquidate or dissolve into, or
merge with and into, another Subsidiary if, after giving effect to such
combination or merger, Company continues to own (directly or indirectly), and
Administrative Agent continues to have pledged to it pursuant to the Pledge
Agreement, a percentage of the issued and outstanding equity Securities (on a
fully diluted basis) of the Subsidiary surviving such combinations or merger
that is equal to or in excess of the percentage of the issued and outstanding
shares of equity Securities (on a fully diluted basis) of the Subsidiary that
does not survive such combinations or merger that was (immediately prior to the
combination or merger) owned by Company or pledged to Administrative Agent;

 

(ii) 
Company and its Subsidiaries may make Consolidated Capital Expenditures
permitted under subsection 6.8;

 

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

 

(iv) 
Company and its Subsidiaries may consummate any transfer, conveyance or
other disposal that constitutes (a) an Investment permitted under subsection
6.3, (b) a Lien permitted under subsection 6.2, (c) a Restricted Junior Payment
permitted under subsection 6.5 or (d) a sale and leaseback transaction
permitted by subsection 6.10;

 

(v) 
Company and its Subsidiaries may sell or otherwise dispose of assets in
transactions that do not constitute Asset Sales;

 

(vi) 
(x) Company and its Subsidiaries may make Permitted Acquisitions; provided
that such Permitted Acquisitions result in Company or the relevant Subsidiary
acquiring a majority controlling interest in the Person (or its assets and
businesses) acquired, or increasing any such controlling interest maintained by
it in such Person or result in the Person acquired becoming an Acquired
Controlled Person with respect to Company and its Subsidiaries; and (y) no
later than five Business Days prior to the consummation thereof, Company
delivers to Administrative Agent a Permitted Acquisition Compliance Certificate
demonstrating compliance with the requirements of the definition of “Permitted
Acquisition” and copies of all acquisition agreements executed and delivered in
connection therewith to the extent available and requested by Administrative
Agent; and provided,  further, that reasonably promptly following
the consummation of such Permitted Acquisition, Company shall have complied
with the provisions of subsections 5.7 and 5.8 with respect thereto to the
extent applicable;

 

(vii) 
Company and its Subsidiaries may sell or otherwise dispose of assets as
a result of any taking of assets described in clause (ii) of the definition of
“Net Insurance/Condemnation Proceeds”, so long as the Net
Insurance/Condemnation Proceeds resulting therefrom are applied or reinvested
as required by subsection 2.4B(ii)(b);

 

(viii) 
Company and its Subsidiaries may sell or discount overdue accounts
receivable in the ordinary course of business, but only in connection with the
compromise or collection thereof;

 

(ix) 
Company and its Subsidiaries may make Asset Sales to Non-Wholly-Owned
Subsidiaries that are not Subsidiary Guarantors of assets having a fair market
value of not in

 

69

 

excess
of $10,000,000 in the aggregate for all such Asset Sales made after the First
Closing Date; provided that (x) the consideration for such assets shall
be in an amount at least equal to the fair market value thereof, and (y) any
Investment in such Non-Wholly-Owned Subsidiaries resulting from such Asset Sale
shall be permitted by subsection 6.3(xii) or as a Permitted Acquisition
pursuant to subsection 6.3(vii); and

 

(x) Company and its Subsidiaries may make
Asset Sales not permitted by the foregoing clauses (i) through (ix) to the
extent the Asset Sales under this clause (x) do not constitute a sale of all or
substantially all of Company’s assets or all or substantially all of its
Subsidiaries’ assets on a consolidated basis; provided that (x) the
consideration received for such assets shall be in an amount at least equal to
the fair market value thereof; (y) at least 90% of the consideration received
therefor is in the form of cash or Cash Equivalents; and (z) the proceeds of
such Asset Sale are (1) applied or reinvested as and within the times required
by subsection 2.4B(ii)(a), (2) applied to permanent repayment of Indebtedness
in respect of the First Lien Credit Agreement no later than 365 days after
receipt thereof or (3) reinvested no later than 365 days after receipt thereof
in tangible or intangible property or assets (other than property or assets
that constitute current assets under GAAP, unless the acquisition thereof is
incidental to the acquisition of a materially greater amount of non-current
assets) that is to be used in the business of Company and its Subsidiaries.

 

6.8                               Consolidated
Capital Expenditures.

 

(i) 
Company will not, and will not permit any of its Subsidiaries to, make
or commit to make Consolidated Capital Expenditures in any Fiscal Year,
beginning with the Fiscal Year ending December 31, 2003, except Consolidated
Capital Expenditures which do not aggregate in excess of the corresponding
amount set forth below opposite such Fiscal Year:

 

	
  Fiscal
  Year

  	
   

  	
  Consolidated
  Capital Expenditures

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Fiscal Year
  ending December 31, 2003

  	
   

  	
  $

  	
  5,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Fiscal Year
  ending December 31, 2004

  	
   

  	
  $

  	
  5,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Fiscal Year
  ending December 31, 2005 and each Fiscal Year thereafter

  	
   

  	
  $

  	
  7,000,000

  	
   

  

 

 

provided
that (a) if the aggregate amount of Consolidated Capital Expenditures actually
made in any such Fiscal Year shall be less than the limit with respect thereto
set forth above (before giving effect to any increase therein pursuant to this
proviso) (the “Base Amount”), then
the amount of such shortfall (up to an amount equal to 50% of the Base Amount
for such Fiscal Year, without giving effect to this proviso) may be added to
the amount of such Consolidated Capital Expenditures permitted for the
immediately succeeding Fiscal Year and any such amount carried forward to a
succeeding Fiscal Year shall be deemed to be used prior to Company and its
Subsidiaries using the amount of capital expenditures permitted by this section
in such succeeding Fiscal Year, without giving effect to such carryforward and
(b) for any Fiscal Year (or portion thereof) following any acquisition of a
business (whether through the purchase of assets or of shares of capital stock)
permitted under subsection 6.7, the Base Amount for such Fiscal Year (or
portion) shall be increased, for each such acquisition, by an amount equal to
the product of (A) the lesser of (x) $5,000,000 and (y)  4% of revenues of the business acquired in
such acquisition for the period of four Fiscal Quarters most recently ended on
or prior to the date of such business acquisition multiplied by (B) (x) in the case of any partial Fiscal
Year, a fraction, the numerator of which is the number of days

 

70

 

remaining in
such Fiscal Year after the date of such business acquisition and the
denominator of which is 365 (or 366 in a leap year), and (y) in the case of any
full Fiscal Year, 1.

 

(ii) 
The parties acknowledge and agree that the permitted Consolidated
Capital Expenditure level set forth in clause (i) above shall be exclusive of
the amount of Consolidated Capital Expenditures actually made with the proceeds
of a cash capital contribution to Company (including the proceeds of issuance
of equity securities) made by Parent from the issuance by Parent of its equity
Securities after the Closing Date and specifically identified in a certificate
delivered by an Authorized Officer of Company to Administrative Agent on or
about the time such capital contribution is made; provided that, to the
extent any such cash capital contributions constitute Net Securities Proceeds
after the Closing Date, only that portion of such Net Securities Proceeds which
is not required to be applied as a prepayment pursuant to Section 2.4B(ii)(c)
(or pursuant to the First Lien Credit Agreement) may be used for Consolidated
Capital Expenditures pursuant to this clause (ii).

 

6.9                               Fiscal Year.

 

Company shall
not change its Fiscal Year-end from December 31 of each calendar year.

 

6.10                        Sales
and Lease-Backs.

 

Company shall
not, and shall not permit any of its Subsidiaries to, directly or indirectly,
become or remain liable as lessee or as a guarantor or other surety with
respect to any lease, whether an Operating Lease or a Capital Lease, of any
property (whether real, personal or mixed), whether now owned or hereafter
acquired, (i) which Company or any of its Subsidiaries has sold or transferred
or is to sell or transfer to any other Person (other than Company or any of its
Subsidiaries) or (ii) which Company or any of its Subsidiaries intends to use
for substantially the same purpose as any other property which has been or is
to be sold or transferred by Company or any of its Subsidiaries to any Person
(other than Company or any of its Subsidiaries) in connection with such lease; provided
that Company and its Subsidiaries may become and remain liable as lessee,
guarantor or other surety with respect to any such lease if the property which
is subject to such lease was acquired by Company or any of its Subsidiaries
within 180 days of such sale or transfer of such property by Company or any of
its Subsidiaries.

 

6.11                        Sale
or Discount of Receivables.

 

Company shall
not, and shall not permit any of its Subsidiaries to, directly or indirectly,
sell with recourse, or discount or otherwise sell for less than the face value
thereof, any of its notes or accounts receivable; provided that Company
and its Subsidiaries may sell or discount overdue accounts receivable in the
ordinary course business, but only in connection with the compromise or
collection thereof.

 

6.12                        Transactions with Stockholders and Affiliates.

 

Company shall
not, and shall not permit any of its Subsidiaries to, directly or indirectly,
enter into or permit to exist any transaction (including the purchase, sale,
lease or exchange of any property or the rendering of any service) with any
holder of 5% or more of the voting Securities of Parent or Company or with any
Affiliate of Parent or Company on terms that are less favorable to Company or
that Subsidiary, as the case may be, than those that might be obtained at the
time from Persons who are not such a holder or Affiliate; provided that
the foregoing restriction shall not apply to (i) any transaction between
Company and any of its Wholly-Owned Subsidiaries or between any of its
Wholly-Owned Subsidiaries; (ii) reasonable and customary fees paid to members
of the Boards of Directors of Company and its Subsidiaries consistent with past practice; (iii) any
Restricted Junior Payment permitted under subsection

 

71

 

6.5; (iv) the entry into and performance of
obligations under arrangements with CSFB and its Affiliates for underwriting,
investment banking and advisory services on usual and customary terms
(including payments of the fee in respect of advisory services contemplated in
subsection 6.5(ii)); (v) the payment of reasonable and customary fees and
reimbursement of expenses payable to directors of Parent consistent with past practice; (vi)
employment arrangements with respect to the procurement of services of
directors, officers and employees in the ordinary course of business and the
payment of reasonable fees in connection therewith; (vii) the issuance of
equity Securities to Global Technology Partners, L.L.C. described in subsection
6.3; and (viii) the execution, delivery and performance of the agreements
listed on Schedule 6.12 or any intercreditor agreement executed in
connection with any Permitted Indebtedness not incurred pursuant to the
Incremental Facility.

 

6.13                        Issuance
of Subsidiary Equity.

 

Company shall
not permit any of its Subsidiaries directly or indirectly to issue any shares
of its capital stock or other equity Securities except to Company, another
Subsidiary of Company, to qualify directors if required by applicable law or in
proportion to its existing equity Securities of any class.

 

6.14                        Conduct of Business.

 

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

 

6.15                        Amendments
of Documents Relating
to Indebtedness.

 

A.                                    Company shall not, and shall not
permit any of its Subsidiaries to, amend or otherwise change the terms of any
Subordinated Indebtedness, or make any payment consistent with an amendment
thereof or change thereto, if the effect of such amendment or change is to
increase the interest rate on such Subordinated Indebtedness, change (to
earlier dates) any dates upon which payments of principal or interest are due
thereon, change any event of default or condition to an event of default with
respect thereto (other than to eliminate any such event of default or increase
any grace period related thereto), change the redemption, prepayment or
defeasance provisions thereof, change the subordination provisions thereof (or
of any guaranty thereof), or change any collateral therefor (other than to
release such collateral), or if the effect of such amendment or change,
together with all other amendments or changes made, is to increase materially the
obligations of the obligor thereunder to the detriment of Lenders or to confer
any additional rights on the holders of such Subordinated Indebtedness (or a
trustee or other representative on their behalf)  which would be adverse to Lenders.

 

B.                                    Company shall not, and shall not
permit any of its Subsidiaries to, designate any Indebtedness (other than any
Indebtedness in respect of the Loan Documents and Indebtedness in respect of
the First Lien Credit Agreement) as “Designated Senior Debt” (as defined in the
Senior Subordinated Note Indenture) without the prior written consent of
Requisite Lenders.

 

C.                                    Company shall not, and shall not
permit any of its Subsidiaries to, amend or otherwise change the terms of any
Permitted Indebtedness that does not constitute the Incremental Facility, or
make any amendment thereof or change thereto, if the effect of such amendment
or change is to increase the interest rate on such Permitted Indebtedness,
change (to earlier dates) any dates upon which payments of principal or interest
are due thereon, change any

 

72

 

event of default or
condition to an event of default with respect thereto (other than to eliminate
any such event of default or increase any grace period related thereto), change
the redemption, prepayment or defeasance provisions thereof, change the
subordination provisions thereof (or of any guaranty thereof), or change any
collateral therefor (other than to release such collateral or to include
collateral in which a security interest is granted to secure the Obligations),
or if the effect of such amendment or change, together with all other
amendments or changes made, is to increase materially the obligations of the
obligor thereunder to the detriment of Lenders or to confer any additional
rights on the holders of such Permitted Indebtedness (or a trustee or other
representative on their behalf) which would be adverse to Lenders.

 

D.                                    Company shall not, and shall not
permit any of its Subsidiaries to, amend or otherwise change the terms of the
First Lien Credit Agreement or documents related thereto or entered into in
connection therewith to (i) increase the maximum stated principal amount of
Indebtedness or commitments permitted to remain outstanding thereunder other than
in connection with Indebtedness permitted to be incurred pursuant to subsection
6.1(xi) or (ii) restrict Company’s ability to make interest payments required
hereunder.

 

Section 7.                                          EVENTS OF DEFAULT

 

If any of the
following conditions or events (each, an “Event of Default”)
shall occur:

 

7.1                               Failure
to Make Payments When Due.

 

Failure by
Company to pay any installment of principal of any Loan when due, whether at
stated maturity, by acceleration, by notice of voluntary prepayment, by
mandatory prepayment or otherwise; or failure by Company to pay any interest or
premium on any Loan or any fee or any other amount due under this Agreement
within five days after the date due; or

 

7.2                               Default
in Other Agreements.

 

(i)Failure of Company or any of its Subsidiaries
to pay when due any principal of or interest on or any other amount payable in
respect of one or more items of Indebtedness (other than Indebtedness referred
to in subsection 7.1) or Contingent Obligations in either an individual or an
aggregate principal amount of $5,000,000 or more, in each case beyond the end
of any grace period provided therefor (other than pursuant to a Change of
Control); or (ii) breach or default by Company or any of its Subsidiaries with
respect to any other material term of (a) one or more items of Indebtedness or
Contingent Obligations in the individual or aggregate principal amounts
referred to in clause (i) above or (b) any loan agreement, mortgage, indenture
or other agreement relating to such item(s) of Indebtedness or Contingent
Obligation(s), if the effect of such breach or default is to cause, or to
permit the holder or holders of that Indebtedness or Contingent Obligation(s)
(or a trustee on behalf of such holder or holders) to cause, that Indebtedness
or Contingent Obligation(s) to become or be declared due and payable prior to
its stated maturity or the stated maturity of any underlying obligation, as the
case may be; provided that, with respect to any breach or default under
the First Lien Credit Agreement (other than any breach or default resulting
from failure to pay amounts due thereunder), (x) if such breach or default is a
Change of Control, such event shall not constitute an Event of Default under
this Agreement, and (y) any other breach or default thereunder shall only
constitute an Event of Default under this clause (ii) of subsection 7.2 if such
breach or default occurs and is not cured or waived upon the earlier of (I) 45
days after the occurrence of such breach or default or (II) Indebtedness under
a First Lien Credit Agreement becoming due and payable prior to its stated
maturity; or

 

73

 

7.3                               Breach
of Certain Covenants.

 

Failure of
Company to perform or comply with any term or condition contained in subsection
2.4B(iii), 2.5, 5.2 (solely with respect to the continued existence of Company)
or 5.1(vi) or Section 6 of this Agreement; or

 

7.4                               Breach
of Warranty.

 

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

 

7.5                               Other
Defaults Under Loan Documents.

 

Any Loan Party
shall default in the performance of or compliance with any term contained in
this Agreement or any of the other Loan Documents, other than any such term
referred to in any other subsection of this Section 7, and such default shall
not have been remedied or waived within 30 days after receipt by Company and
such Loan Party of notice from Administrative Agent at the direction of the
Requisite Lenders of such default; or

 

7.6                               Involuntary Bankruptcy; Appointment of Receiver, etc.

 

(i)  A
court having jurisdiction in the premises shall enter a decree or order for
relief in respect of Company or any of its Subsidiaries (other than any
Immaterial Subsidiary) in an involuntary case under the Bankruptcy Code or
under any other applicable bankruptcy, insolvency or similar law now or
hereafter in effect, which decree or order is not stayed; or any other similar
relief shall be granted under any applicable federal or state law; or (ii) an
involuntary case shall be commenced against Company or any of its Subsidiaries
(other than any Immaterial Subsidiary) under the Bankruptcy Code or under any
other applicable bankruptcy, insolvency or similar law now or hereafter in
effect; or a decree or order of a court having jurisdiction in the premises for
the appointment of a receiver, liquidator, sequestrator, trustee, custodian or
other officer having similar powers over Company or any of its Subsidiaries
(other than any Immaterial Subsidiary), or over all or a substantial part of
its property, shall have been entered; or there shall have occurred the
involuntary appointment of an interim receiver, trustee or other custodian of
Company or any of its Subsidiaries (other than any Immaterial Subsidiary) for
all or a substantial part of its property; or a warrant of attachment,
execution or similar process shall have been issued against any substantial
part of the property of Company or any of its Subsidiaries (other than any
Immaterial Subsidiary), and any such event described in clauses (i) or (ii)
shall continue for 60 days unless dismissed, bonded or discharged; or

 

7.7                               Voluntary
Bankruptcy; Appointment of Receiver, etc.

 

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

 

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

 

7.8                               Judgments
and Attachments.

 

Any money
judgment, writ or warrant of attachment involving either in any individual case
or in the aggregate at any time an amount in excess of $5,000,000 (in either
case not adequately covered by insurance as to which a responsible insurance
company is not denying its liability with respect thereto) shall be entered or
filed against Company or any of its Subsidiaries or any of their respective
assets and shall remain undischarged, unvacated, unbonded or unstayed for a
period of 60 days; or

 

7.9                               Dissolution.

 

Any order,
judgment or decree shall be entered against Company or any of its Subsidiaries
(other than any Immaterial Subsidiary) decreeing the dissolution or split up of
Company or that Subsidiary (except as permitted under subsections 5.2 and 6.7)
and such order shall remain undischarged or unstayed for a period in excess of 60
days; or

 

7.10                        Employee Benefit Plans.

 

There shall
occur one or more ERISA Events which individually or in the aggregate results
in or might reasonably be expected to result in liability of Company, any of
its Subsidiaries or any of their respective ERISA Affiliates in excess of
$5,000,000 since the First Closing Date; or there shall exist an amount of
unfunded benefit liabilities (as defined in Section 4001(a)(18) of ERISA),
individually or in the aggregate for all Pension Plans (excluding for purposes
of such computation any Pension Plans with respect to which assets exceed
benefit liabilities), which exceeds $5,000,000; or

 

7.11                        Invalidity
of Guaranties;
Failure of Security; Repudiation of Obligations.

 

At any time
after the execution and delivery thereof, (i) any Guaranty for any reason,
other than the satisfaction in full of all Obligations, shall cease to be in
full force and effect (other than in accordance with its terms) or shall be
declared to be null and void, (ii) any Collateral Document shall cease to be in
full force and effect (other than by reason of a release of Collateral
thereunder in accordance with the terms hereof or thereof, the satisfaction in
full of the Obligations or any other termination of such Collateral Document in
accordance with the terms hereof or thereof) or shall be declared null and
void, or Administrative Agent shall not have or shall cease to have a valid and
perfected Lien in any Collateral purported to be covered thereby, in each case
for any reason other than the failure of any Agent or any Lender to take any
action within its control or except to the extent that any such event is
covered by a lender’s title insurance policy and the relevant insurer promptly
after the occurrence thereof shall have acknowledged in writing that the same
is covered by such title insurance policy, or (iii) any Loan Party shall
contest the validity or enforceability of any Loan Document in writing;

 

THEN (i) upon
the occurrence of any Event of Default described in subsection 7.6 or 7.7 (with
respect to Company or any Subsidiary Guarantor), each of (a) the unpaid
principal amount of and accrued interest on the Loans (including Accreted
Amounts and any Default Rate Accreted Amounts), (b) an amount as liquidated
damages for the loss of the bargain evidenced hereby (and not as a penalty)
equal to the amount that would be payable as a prepayment premium by Company
(in the event of a prepayment of all outstanding Loans) pursuant to subsection
2.4B(iv) determined as of the date of the occurrence of

 

75

 

any Event of Default, and (c) all other
Obligations shall automatically become immediately due and payable, without
presentment, demand, protest or other requirements of any kind, all of which
are hereby expressly waived by Company, and (ii) upon the occurrence and during
the continuation of any other Event of Default, Administrative Agent shall,
upon the written request or with the written consent of Requisite Lenders, by
written notice to Company, declare all or any portion of the amounts described
in clauses (a) through (c) above to be, and the same shall forthwith become,
immediately due and payable.

 

Notwithstanding
anything contained in the preceding paragraph, if at any time within 60 days
after an acceleration of the Loans pursuant to clause (ii) of such paragraph
Company shall pay all arrears of interest and all payments on account of
principal which shall have become due otherwise than as a result of such
acceleration (with interest on principal and, to the extent permitted by law,
on overdue interest, at the rates specified in this Agreement) and all Events
of Default and Potential Events of Default (other than non-payment of the
principal of and accrued interest on the Loans, in each case which is due and
payable solely by virtue of acceleration) shall be remedied or waived pursuant
to subsection 9.6, then Requisite Lenders, by written notice to Company, may at
their option rescind and annul such acceleration and its consequences; but such
action shall not affect any subsequent Event of Default or Potential Event of
Default or impair any right consequent thereon.  The provisions of this paragraph are intended merely to bind
Lenders to a decision which may be made at the election of Requisite Lenders
and are not intended, directly or indirectly, to benefit Company, and such
provisions shall not at any time be construed so as to grant Company the right
to require Lenders to rescind or annul any acceleration hereunder or to
preclude Administrative Agent or Lenders from exercising any of the rights or
remedies available to them under any of the Loan Documents, even if the
conditions set forth in this paragraph are met.

 

Section 8.                                          THE AGENTS

 

8.1                               Appointment.

 

A.                                    Appointment of
Agents.  Each Lender hereby irrevocably appoints CSFB
as the Administrative Agent and Syndication Agent hereunder and under the other
Loan Documents and authorizes CSFB, in such capacities, to take such actions on
its behalf and to exercise such powers as are delegated to CSFB in such
capacities by the terms hereof or thereof, together with such actions and
powers as are reasonably incidental thereto. 
Each Agent agrees to act upon the express conditions contained in this
Agreement and the other Loan Documents, as applicable.  In performing its functions and duties under
this Agreement, each Agent shall act solely as an agent of the Lenders and does
not assume and shall not be deemed to have assumed any obligation towards or
relationship of agency or trust with or for Company or any of its
Subsidiaries.  The provisions of this
Section are solely for the benefit of Agents and Lenders, and Company shall not
have rights as a third party beneficiary of any of such provisions.

 

B.                                    Appointment of
Supplemental Collateral Agents.  It is the
purpose of this Agreement and the other Loan Documents that there shall be no
violation of any law of any jurisdiction denying or restricting the right of
banking corporations or associations to transact business as agent or trustee
in such jurisdiction.  It is recognized
that in case of litigation under this Agreement or any of the other Loan
Documents, and in particular in case of the enforcement of any of the Loan
Documents, or in case Administrative Agent deems that by reason of any present
or future law of any jurisdiction Administrative Agent may not exercise any of
the rights, powers or remedies granted herein or in any of the other Loan
Documents or take any other action which may be desirable or necessary in
connection therewith, it may be necessary that Administrative Agent appoint an
additional individual or institution as a separate trustee, co-trustee,
collateral agent or collateral co-agent (any such additional individual or
institution

 

76

 

being referred to
herein individually as a “Supplemental
Collateral Agent” and collectively as “Supplemental Collateral Agents”).

 

In the event
that Administrative Agent appoints a Supplemental Collateral Agent with respect
to any Collateral, (i) each and every right, power, privilege or duty expressed
or intended by this Agreement or any of the other Loan Documents to be
exercised by or vested in or conveyed to Administrative Agent with respect to
such Collateral shall be exercisable by and vest in such Supplemental
Collateral Agent to the extent, and only to the extent, necessary to enable
such Supplemental Collateral Agent to exercise such rights, powers and
privileges with respect to such Collateral and to perform such duties with
respect to such Collateral, and every covenant and obligation contained in the
Loan Documents and necessary to the exercise or performance thereof by such
Supplemental Collateral Agent shall run to and be enforceable by either
Administrative Agent or such Supplemental Collateral Agent, and (ii) the
provisions of this Section 8 and of subsection 9.2 that refer to Administrative
Agent shall inure to the benefit of such Supplemental Collateral Agent and all
references therein to Administrative Agent shall be deemed to be references to
Administrative Agent and/or such Supplemental Collateral Agent, as the context
may require.

 

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

 

8.2                               Powers
and Duties; General Immunity.

 

A.                                    Exculpatory
Provisions.  Agents shall not have any duties or
obligations except those expressly set forth herein and in the other Loan
Documents.  Without limiting the
generality of the foregoing, Agents (i) shall not be subject to any
fiduciary or other implied duties, regardless of whether a Default or an Event
of Default has occurred and is continuing, (ii) shall not have any duty to
take any discretionary action or exercise any discretionary powers, except
discretionary rights and powers expressly contemplated hereby or by the other
Loan Documents that the Agents are required to exercise as directed in writing
by the Requisite Lenders (or such other number or percentage of the relevant
Lenders as shall be necessary under the circumstances as provided in subsection
9.6), provided that no Agent shall be required to take any action that,
in its opinion or the opinion of its counsel, may expose such Agent to
liability or that is contrary to any Loan Document or applicable law, and (iii)
shall not, except as expressly set forth herein and in the other Loan Documents
have any duty to disclose, and shall not be liable for the failure to disclose,
any information relating to Company or any of its Affiliates that is
communicated to or obtained by the person serving as an Agent or any of its
Affiliates in any capacity.  No Agent
shall be liable for any action taken or not taken by it with the consent or at
the request of the Requisite Lenders (or such other number or percentage of
Lenders as shall be necessary under the circumstances as provided in subsection
9.6) or in the absence of its own gross negligence or willful misconduct as
determined by a final, non-appealable judgment of a court of competent
jurisdiction.  No Agent shall be deemed
to have knowledge of any Default or Event of Default unless and until notice
thereof is given to such Agent by Company or a Lender.  Agents shall not be responsible for or have
any duty to ascertain or inquire into (i) any statement, warranty or
representation made in or in connection with this Agreement or any other Loan
Document, (ii) the contents of any certificate, report or other document
delivered hereunder or thereunder or in

 

77

 

connection herewith
or therewith, (iii) the performance or observance of any of the covenants,
agreements or other terms or conditions set forth herein or therein or the
occurrence of any Default or Event of Default, (iv) the validity,
enforceability, effectiveness or genuineness of this Agreement or any other
Loan Document or any other agreement, instrument or document or (v) the satisfaction
of any condition set forth in Section 3 or elsewhere herein, other than to
confirm receipt of items expressly required to be delivered to Agents.

 

B.                                    Action on
Instructions of Lender.  Each Agent
shall in all cases be fully protected in acting, or in refraining from acting,
hereunder and under any other Loan Document in accordance with written
instructions signed by the Requisite Lenders (or if required by the terms of
subsection 9.6, all Lenders), and such instructions and any action taken or
failure to act pursuant thereto shall be binding on all Lenders.  Lenders hereby acknowledge that each Agent
shall be under no duty to take any discretionary action permitted to be taken
by it pursuant to the provisions of this Agreement or any other Loan Document
unless it shall be requested in writing to do so by the Requisite Lenders.  Each Agent shall be fully justified in
failing or refusing to take any action hereunder and under any other Loan
Document unless it shall first be indemnified to its satisfaction by Lenders in
proportion to their Pro Rata Share against any and all liability, cost and
expense that it may incur by reason of taking or continuing to take any such
action.

 

C.                                    Employment of
Agents and Counsel.  Each Agent may execute any of its duties as
Administrative Agent or Syndication Agent, as the case may be, hereunder and
under any other Loan Document by or through employees, agents, and
attorneys-in-fact and shall not be answerable to Lenders, except as to money or
securities received by it or its authorized agents, for the default or
misconduct of any such agents or attorneys-in-fact selected by it with
reasonable care.  Each Agent shall be
entitled to advice of counsel concerning the contractual arrangement between
Agents and Lenders and all matters pertaining to each Agent’s duties hereunder
and under any other Loan Document.

 

D.                                    Reliance by Agents. 
Agents shall be entitled to rely upon, and shall not incur any liability
for relying upon, any notice, request, certificate, consent, statement,
instrument, document or other writing (including any electronic message,
posting or other distribution) believed by it to be genuine and to have been
signed, sent or otherwise authenticated by the proper Person.  Agents also may rely upon any statement made
to it orally or by telephone and believed by it to have been made by the proper
Person, and shall not incur any liability for relying thereon.  In determining compliance with any condition
hereunder to the making of such Loan that by its terms must be fulfilled to the
satisfaction of a Lender, Agents may presume that such condition is
satisfactory to such Lender unless Agents shall have received notice to the
contrary from such Lender prior to the making of such Loan.  Agents may consult with legal counsel (who may
be counsel for Company), independent accountants and other experts selected by
it, and shall not be liable for any action taken or not taken by it in
accordance with the advice of any such counsel, accountants or experts.

 

E.                                      Agents’
Reimbursement and Indemnification.  Lenders agree
to reimburse and indemnify each Agent ratably in proportion to the outstanding
Loans held by them (or, if the Loans have been repaid, in proportion to the
outstanding Loans held by them immediately prior to such repayment) (i) for any
amounts not reimbursed by Company for which any Agent is entitled to
reimbursement by Company under the Loan Documents, (ii) for any other expenses
incurred by any Agent on behalf of Lenders, in connection with the preparation,
execution, delivery, administration and enforcement of the Loan Documents
(including, without limitation, for any expenses incurred  by any Agent in connection with any dispute
between Agents, Agents  and any Lender
or between two or more of Lenders) and (iii) for any liabilities, obligations,
losses,

 

78

 

damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind and
nature whatsoever which may be imposed on, incurred by or asserted against any
Agent in any way relating to or arising out of the Loan Documents or any other
document delivered in connection therewith or the transactions contemplated
thereby (including, without limitation, for any such amounts incurred by or
asserted against any Agent in connection with any dispute between Agents,
Agents and any Lender or between two or more of Lenders), or the enforcement of
any of the terms of the Loan Documents or of any such other documents; provided
that (i) no Lender shall be liable for any of the foregoing to the extent any
of the foregoing is found in a final non-appealable judgment by a court of
competent jurisdiction to have resulted from the gross negligence or willful
misconduct of any Agent and (ii) any indemnification required pursuant to
subsection 2.7 shall, notwithstanding the provisions of this subsection, be
paid by the relevant Lender in accordance with the provisions thereof.  The obligations of Lenders under this
subsection shall survive payment of the Obligations and termination of this
Agreement.

 

F.                                      Rights as a Lender. 
The Persons serving as Agents hereunder shall have the same rights and
powers in its capacity as a Lender as any other Lender and may exercise the
same as though it were not an Agent and the term “Lender” or “Lenders” shall,
unless otherwise expressly indicated or unless the context otherwise requires,
include the Persons serving as the Agents hereunder in their individual
capacity.  Such Persons and their
Affiliates may accept deposits from, lend money to, act as the financial
advisor or in any other advisory capacity for and generally engage in any kind
of business with Company or any Subsidiary or other Affiliate thereof as if
such Persons were not Agents hereunder and without any duty to account therefor
to the Lenders.

 

G.                                    Delegation of
Duties.  Each Agent may perform any and all of its
duties and exercise its rights and powers hereunder or under any other Loan
Document by or through any one or more sub-agents appointed by such Agent.  Agents and any such sub-agent may perform
any and all of its duties and exercise its rights and powers by or through
their respective Related Parties.  The
exculpatory provisions of subsection 8.2 shall apply to any such sub-agent and
to the Related Parties of such Agent and any such sub-agent, and shall
apply to their respective activities in connection with the syndication of the
credit facilities provided for herein as well as activities as such Agent.

 

8.3                               Successor
Agents.

 

A.                                    Successor Agents.  Administrative Agent and/or Syndication Agent may at any time give
notice of its resignation to Lenders and Company.  Upon receipt of any such notice of resignation, the Requisite
Lenders shall have the right, subject, so long as no Event of Default has
occurred and is continuing, to the consent of Company, in consultation with
Company, to appoint a successor Administrative Agent and/or Syndication Agent,
as applicable, which shall be a bank with an office in New York, or an
Affiliate of any such bank with an office in New York.  If no such successor shall have been so
appointed by the Requisite Lenders and shall have accepted such appointment
within 10 days after the retiring Administrative Agent and/or Syndication
Agent as the case may be, gives notice of its resignation, then the retiring
Administrative Agent may on behalf of the Lenders, appoint a successor
Administrative Agent and/or Syndication Agent, as applicable, meeting the
qualifications set forth above and subject, so long as no Event of Default has
occurred and is continuing, to the consent of Company, provided that if
Administrative Agent and/or Syndication Agent, as applicable, shall notify
Company and Lenders that no such successor is willing to accept such
appointment, then such resignation shall nonetheless become effective in
accordance with such notice and (1) the retiring Administrative Agent
and/or Syndication Agent, as applicable, shall be discharged from its duties
and obligations

 

79

 

hereunder and under
the other Loan Documents and (2) all payments, communications and
determinations provided to be made by, to or through Administrative Agent
and/or Syndication Agent, as applicable, shall instead be made by or to each
Lender directly, until such time as the Requisite Lenders appoint a successor
Administrative Agent and/or Syndication Agent, as applicable, as provided for
above in this paragraph.  Upon the
acceptance of a successor’s appointment as Administrative Agent and/or Syndication
Agent, as applicable hereunder, such successor shall succeed to and become
vested with all of the rights, powers, privileges and duties of the retiring
(or retired) Administrative Agent and/or Syndication Agent, as applicable, and
the retiring Administrative Agent and/or Syndication Agent, as applicable shall
be discharged from all of its duties and obligations hereunder or under the
Loan Documents.  The fees payable by
Company to a successor Administrative Agent and/or Syndication Agent, as applicable,
shall be the same as those payable to its predecessor unless otherwise agreed
between Company and such successor. 
After the retiring Administrative Agent’s and/or Syndication Agent’s
resignation hereunder and under the other Loan Documents, the provisions of
this Section 8 and subsection 9.2 shall continue in effect for the benefit
of such retiring Administrative Agent and/or Syndication Agent, as applicable,
its sub-agents and their respective Related Parties in respect of any actions
taken or omitted to be taken by any of them while the retiring Administrative
Agent and/or Syndication Agent, as applicable was acting in such capacity.

 

8.4                               Collateral
Documents.

 

Each
Lender hereby further authorizes Administrative Agent to enter into each
Collateral Document as secured party on behalf of and for the benefit of
Lenders and the other beneficiaries named therein and agrees to be bound by the
terms of each Collateral Document; provided that Administrative Agent
shall not enter into or consent to any amendment, modification, termination or
waiver of any provision contained in any Collateral Document without the prior
consent of the Requisite Lenders (or, if required pursuant to subsection 9.6,
all Lenders); provided  further, however, that, without
further written consent or authorization from any Lender, Administrative Agent
may execute any documents or instruments necessary to effect the release of any
asset constituting Collateral from the Lien of the applicable Collateral
Document in the event that such asset is sold or otherwise disposed of in a
transaction effected in accordance with subsection 6.7 or to the extent
otherwise required by any Collateral Document or the Intercreditor
Agreement.  Anything contained in any of
the Loan Documents to the contrary notwithstanding, each Lender agrees that no
Lender shall have any right individually to realize upon any of the Collateral
under any Collateral Document, it being understood and agreed that all rights
and remedies under the Collateral Documents may be exercised solely by
Administrative Agent for the benefit of Lenders and the other beneficiaries
named therein in accordance with the terms thereof and subject to the terms of
the Intercreditor Agreement.  Each
Lender hereby further authorizes Administrative Agent to enter into such
amendments to and amendments and restatements of and any other modifications to
each Collateral Document, the Intercreditor Agreement, any other applicable
intercreditor agreement relating to any First Lien Credit Agreement or
Permitted Indebtedness and any other documents and instruments as secured party
on behalf of and for the benefit of Lenders and the other beneficiaries named
therein, in each case as shall be necessary or advisable in connection with the
Intercreditor Agreement and the incurrence of Permitted Indebtedness to
effectuate the terms thereof and hereof, and each Lender hereby agrees to be
bound by the terms thereof.

 

8.5                               Non-Reliance on Agents and Other Lenders.

 

Each
Lender acknowledges that it has, independently and without reliance upon any
Agent or any other Lender or any of their Related Parties and based on such
documents and information as it

 

80

 

has
deemed appropriate, made its own credit analysis and decision to enter into
this Agreement.  Each Lender also
acknowledges that it will, independently and without reliance upon the any
Agent or any other Lender or any of their Related Parties and based on such
documents and information as it shall from time to time deem appropriate,
continue to make its own decisions in taking or not taking action under or
based upon this Agreement, any other Loan Document or any related agreement or
any document furnished hereunder or thereunder.

 

Section 9.                                          MISCELLANEOUS

 

9.1                               Assignments and Participations in Loans.

 

A.                                    General. 
The provisions of this Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns
permitted hereby, except that Company may not assign or otherwise transfer any
of its rights or obligations hereunder without the prior written consent of
each Lender and Administrative Agent and no Lender may assign or otherwise
transfer any of its rights or obligations hereunder except (i) to an
Eligible Assignee in accordance with the provisions of subsection 9.1B,
(ii) by way of participation in accordance with the provisions of
subsection 9.1C or (iii) by way of pledge or assignment of a security
interest subject to the restrictions of subsection 9.1E (and any other
attempted assignment or transfer by any party hereto shall be null and
void).  Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than
the parties hereto, their respective successors and assigns permitted hereby,
Participants to the extent provided in subsection 9.1C and, to the extent
expressly contemplated hereby, the Related Parties of each of Administrative
Agent and the Lenders) any legal or equitable right, remedy or claim under or
by reason of this Agreement.

 

B.                                    Assignments.

 

Any Lender may at any time assign to one or
more Eligible Assignees all or a portion of its rights and obligations under
this Agreement; provided that:

 

(i)except in the case of an assignment of all
the Loans at the time owing to it or in the case of an assignment to a then
existing Lender or an Affiliate of a then existing Lender or an Approved Fund
with respect to the assigning Lender, the aggregate amount of Loans subject to
each such assignment (determined as of the date the Assignment Agreement with
respect to such assignment is delivered to Administrative Agent or, if “Trade
Date” is specified in the Assignment Agreement, as of the Trade Date) shall not
be less than $1,000,000 or an integral multiple of $1,000,000 in excess
thereof, unless each of Administrative Agent and, so long as no Event of
Default has occurred and is continuing, Company otherwise consent (each such
consent not to be unreasonably withheld or delayed and such approval to be
deemed to have been given if a response is not received within five Business
Days from the date on which request for approval was received by the applicable
Person);

 

(ii)(A) except in the case of assignments
made in connection with the primary syndication of the Loans by Agents within
five Business Days of the Closing Date and except in the case of an assignment
of Loans to a then existing Lender or an Affiliate of a then existing Lender or
an Approved Fund with respect to the assigning Lender, the consent of Company
(which consent shall only be required if no Event of Default has occurred and
is continuing and which consent shall not be unreasonably withheld or delayed)
shall be required; and (B) the consent of Administrative Agent (which consent
shall not be unreasonably withheld or delayed) shall be required;

 

81

 

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

 

(iv)the parties to each assignment shall
(1) electronically execute and deliver to Administrative Agent an
Assignment Agreement via an electronic settlement system acceptable to
Administrative Agent (which initially shall be ClearPar, LLC) or (2) manually
execute and deliver to Administrative Agent an Assignment Agreement, together
with a processing and recordation fee of $3,500 (for which Company shall not be
liable); and the Eligible Assignee, if it shall not be a Lender, shall deliver
to Administrative Agent an Administrative Questionnaire and if required,
applicable tax forms.

 

Subject to
acceptance and recording thereof by Administrative Agent, from and after the
effective date specified in each Assignment Agreement, the Eligible Assignee
thereunder shall be a party to this Agreement and, to the extent of the
interest assigned by such Assignment Agreement, 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 Agreement, be released
from its obligations under this Agreement (and, in the case of an Assignment
Agreement 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 subsection 2.7 with respect to
facts and circumstances occurring prior to the effective date of such
assignment.  Any assignment or transfer
by a Lender of rights or obligations under this Agreement that does not comply
with this paragraph shall be treated for purposes of this Agreement as a sale
by such Lender of a participation in such rights and obligations in accordance
with subsection 9.1C.

 

C.                                    Participations. 
Any Lender may at any time, without the consent of, or notice to,
Company or Administrative Agent, sell participations to any Person (other than
a natural person or Company or any of Company’s Subsidiaries) (each, a “Participant”) in all or a portion of such
Lender’s rights and/or obligations under this Agreement (including all or a
portion of the Loans owing to it); provided that

 

(i)such Lender’s obligations under this
Agreement shall remain unchanged;

 

(ii)such Lender shall remain solely
responsible to the other parties hereto for the performance of such
obligations; and

 

(iii)Company, Administrative Agent and the
other Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this Agreement.

 

Any agreement or instrument pursuant to which
a Lender sells such a participation shall provide that such Lender shall retain
the sole right to enforce this Agreement and to approve any amendment,
modification or waiver of any  provision
of this Agreement; provided that such agreement or instrument may
provide that such Lender will not, without the consent of the Participant,
agree to any amendment, modification or waiver with respect to any action (i)
effecting the extension of the final maturity of the Loan allocated to such
participation, (ii) effecting a reduction of the principal amount of or
affecting the rate of interest payable on any Loan allocated to such
participation, (iii) releasing all or substantially all of the Collateral, or
(iv) releasing all or substantially all of the guarantors from their
obligations under the Guaranties, and all amounts payable by Company
hereunder.  Subject to subsection 9.1D,
Company agrees that each Participant shall be entitled to the benefits of
subsection 2.7 to the same extent as if it were a

 

82

 

Lender and had
acquired its interest by assignment pursuant to subsection 9.1B.  To the extent permitted by law, each
Participant also shall be entitled to the benefits of subsection 9.4 as
though it were a Lender, provided such Participant agrees to be subject to
subsection 9.5 as though it were a Lender.

 

D.                                    Limitations Upon
Participant Rights.  A Participant shall not be
entitled to receive any greater payment under subsection 2.7 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 Company’s prior written consent.

 

E.                                      Certain Pledges. 
Any Lender may at any time pledge or assign a security interest in all
or any portion of its rights under this Agreement to secure obligations of such
Lender, including without limitation any pledge or assignment to secure
obligations to a Federal Reserve Bank; provided that no such pledge or
assignment shall release such Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party hereto.  Notwithstanding anything to the contrary
contained herein, any Lender that is a Fund may create a security interest in
all or any portion of the Loans owing to it and the Notes, if any, held by it
to the trustee for holders of obligations owed, or securities issued, by such
Fund as security for such obligations or securities, provided that
unless and until such trustee actually becomes a Lender in compliance with the
other provisions of this subsection 9.1, (i) no such pledge shall release the
pledging Lender from any of its obligations under this Agreement and (ii) such
trustee shall not be entitled to exercise any of the rights of a Lender under
this Agreement and the Notes even though such trustee may have acquired
ownership rights with respect to the pledged interest through foreclosure or
otherwise.

 

F.                                      Information. 
Each Lender may furnish any information concerning Company and its
Subsidiaries in the possession of that Lender from time to time to assignees
and participants (including prospective assignees and participants), subject to
subsection 9.19.

 

G.                                    Representations of
Lenders.  Each Lender listed on the signature pages
hereof hereby represents and warrants (i) that it is an Eligible Assignee
described in clause (A) of the definition thereof; (ii) that it has experience
and expertise in the making of loans such as the Loans; and (iii) that it will
make its Loans for its own account in the ordinary course of its business and
without a view to distribution of such Loans within the meaning of the
Securities Act or the Exchange Act or other federal securities laws (it being
understood that, subject to the provisions of this subsection 9.1, the
disposition of such Loans or any interests therein shall at all times remain
within its exclusive control).  Each
Lender that becomes a party hereto pursuant to an Assignment Agreement shall be
deemed to agree that the representations and warranties of such Lender
contained in Section 2(c) of such Assignment Agreement are incorporated herein
by this reference.

 

9.2                               Expenses.

 

Whether or not
the transactions contemplated hereby shall be consummated, Company agrees to
pay promptly (i) all the actual and reasonable costs and expenses of Agents
with respect to the preparation of the Loan Documents and any consents,
amendments, waivers or other modifications thereto; (ii) the reasonable fees,
expenses and disbursements of a single counsel to Agents and Arranger
(including the costs of local or foreign counsel, to the extent required) in
connection with the negotiation, preparation, execution and administration of
the Loan Documents and any consents, amendments, waivers or other modifications
thereto and any other documents or matters requested by Company; (iii) all the
actual costs and reasonable expenses of creating and perfecting Liens in favor
of Administrative Agent on behalf of

 

83

 

Lenders pursuant to any Collateral Document,
including filing and recording fees, expenses and taxes, stamp or documentary
taxes, search fees, title insurance premiums, and reasonable fees, expenses and
disbursements of counsel to Agents and of counsel providing any opinions that
Syndication Agent, Administrative Agent or Requisite Lenders may request in
respect of the Collateral Documents or the Liens created pursuant thereto; (iv)
the custody or preservation of any of the Collateral; (v) all other actual and
reasonable costs and expenses incurred by Arranger, Syndication Agent or
Administrative Agent (including the reasonable fees, expenses and disbursements
of any auditors, accountants or appraisers and any environmental or other consultants,
advisors and agents  employed or
retained by Syndication Agent, Administrative Agent or their respective
counsel) in connection with the syndication of the Commitments and the
negotiation, preparation and execution of the Loan Documents and any consents,
amendments, waivers or other modifications thereto and the transactions
contemplated thereby; and (vi) after the occurrence of an Event of Default, all
costs and expenses, including reasonable attorneys’ fees and costs of
settlement, incurred by Agents and Lenders in enforcing any Obligations of or
in collecting any payments due from any Loan Party hereunder or under the other
Loan Documents by reason of such Event of Default (including in connection with
the sale of, collection from, or other realization upon any of the Collateral
or the enforcement of the Guaranties or in connection with any refinancing or
restructuring of the credit arrangements provided under this Agreement in the
nature of a “work-out” or pursuant to any insolvency or bankruptcy proceedings).

 

9.3                               Indemnity.

 

In addition to
the payment of expenses pursuant to subsection 9.2, whether or not the
transactions contemplated hereby shall be consummated, Company agrees to defend
(subject to Indemnitees’ selection of counsel), indemnify, pay and hold
harmless Arranger, Agents and Lenders, and the officers, directors, trustees,
employees, agents and affiliates of Arranger, Agents and Lenders (collectively
called the “Indemnitees”), from
and against any and all Indemnified Liabilities (as hereinafter defined); provided
that Company shall not have any obligation to any Indemnitee hereunder with
respect to any Indemnified Liabilities to the extent such Indemnified
Liabilities arise from the gross negligence or willful misconduct of that
Indemnitee as determined by a final judgment of a court of competent
jurisdiction or to the extent that such Indemnified Liabilities are
Environmental Liabilities that arise solely out of the actions of
Administrative Agent or Lenders occurring after Administrative Agent or Lenders
shall have foreclosed on, or otherwise dispossessed Company and its
Subsidiaries of, the applicable Facility.

 

As used
herein, “Indemnified Liabilities”
means, collectively, any and all liabilities, obligations, losses, damages
(including natural resource damages), penalties, actions, judgments, suits,
claims (including Environmental Claims), costs (including the costs of any
investigation, study, sampling, testing, abatement, cleanup, removal,
remediation or other response action necessary to remove, remediate, clean up
or abate any Hazardous Materials Activity), expenses and disbursements of any
kind or nature whatsoever (including the reasonable fees and disbursements of
counsel for Indemnitees in connection with any investigative, administrative or
judicial proceeding commenced or threatened by any Person, whether or not any
such Indemnitee shall be designated as a party or a potential party thereto,
and any fees or expenses incurred by Indemnitees in enforcing this indemnity),
whether direct, indirect or consequential and whether based on any federal,
state or foreign laws, statutes, rules or regulations (including securities and
commercial laws, statutes, rules or regulations and Environmental Laws), on
common law or equitable cause or on contract or otherwise, that may be imposed
on, incurred by, or asserted against any such Indemnitee, in any manner
relating to or arising out of (i) this Agreement or the other Loan Documents or
the transactions contemplated hereby or thereby (including Lenders’ agreement
to make the Loans hereunder or the use or intended use of the proceeds thereof,
or any enforcement of any of the Loan Documents (including any sale of,
collection from, or other realization upon any of the Collateral or the
enforcement of the Guaranties) or (ii) any Environmental Claim or any Hazardous

 

84

 

Materials Activity relating to or arising
from, directly or indirectly, any past or present activity, operation, land
ownership, or practice of Company or any of its Subsidiaries.

 

To the extent
that the undertakings to defend, indemnify, pay and hold harmless set forth in
this subsection 9.3 may be unenforceable in whole or in part because they are
violative of any law or public policy, Company shall contribute the maximum
portion that it is permitted to pay and satisfy under applicable law to the
payment and satisfaction of all Indemnified Liabilities incurred by Indemnitees
or any of them.

 

9.4                               Set-Off; Security Interest in Deposit Accounts.

 

In addition to
any rights now or hereafter granted under applicable law and not by way of
limitation of any such rights, upon the occurrence of any Event of Default
referred to in subsections 7.6 or 7.7 or, with the consent of the Requisite
Lenders, upon the occurrence of any other Event of Default, each Lender is, to
the fullest extent permitted by applicable law, hereby authorized by Company at
any time or from time to time, without notice to Company or to any other
Person, any such notice being hereby expressly waived, subject to the terms of
the Intercreditor Agreement, to set off and to appropriate and to apply any and
all deposits (general or special, including Indebtedness evidenced by
certificates of deposit, whether matured or unmatured, but not including trust
accounts) and any other Indebtedness at any time held or owing by that Lender
to or for the credit or the account of Company against and on account of the
obligations and liabilities then due of Company to that Lender under this Agreement
and the other Loan Documents, including all claims of any nature or description
arising out of or connected with this Agreement or any other Loan Document,
irrespective of whether or not that Lender shall have made any demand
hereunder.  Company hereby further
grants to each Agent and each Lender a security interest in all deposits and
accounts maintained with such Agent or such Lender as security for the
Obligations.

 

9.5                               Ratable
Sharing.

 

Lenders hereby
agree among themselves that if any of them shall, whether by voluntary payment
(other than a voluntary prepayment of Loans made and applied in accordance with
the terms of this Agreement), by realization upon security, through the
exercise of any right of set-off or banker’s lien, by counterclaim or cross
action or by the enforcement of any right under the Loan Documents or
otherwise, or as adequate protection of a deposit treated as cash collateral
under the Bankruptcy Code, receive payment or reduction of a proportion of the
aggregate amount of principal, interest, premium, fees and other amounts then
due and owing to that Lender hereunder or under the other Loan Documents
(collectively, the “Aggregate Amounts Due”
to such Lender) which is greater than the proportion received by any other
Lender in respect of the Aggregate Amounts Due to such other Lender, then the
Lender receiving such proportionately greater payment shall (i) notify
Administrative Agent and each other Lender of the receipt of such payment and
(ii) apply a portion of such payment to purchase participations (which it shall
be deemed to have purchased from each seller of a participation simultaneously
upon the receipt by such seller of its portion of such payment) in the
Aggregate Amounts Due to the other Lenders so that all such recoveries of
Aggregate Amounts Due shall be shared by all Lenders in proportion to the
Aggregate Amounts Due to them; provided that if all or part of such
proportionately greater payment received by such purchasing Lender is
thereafter recovered from such Lender upon the bankruptcy or reorganization of
Company or otherwise, those purchases shall be rescinded and the purchase
prices paid for such participations shall be returned to such purchasing Lender
ratably to the extent of such recovery, but without interest.  Company expressly consents to the foregoing
arrangement and agrees, to the fullest extent that it may do so under
applicable law, that any holder of a participation so purchased may exercise
any and all rights of banker’s lien, set-off or counterclaim with respect to
any and all monies owing by Company to that holder with respect thereto as
fully as if that holder were owed the amount of the participation held by that
holder.

 

85

 

9.6                               Amendments
and Waivers.

 

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

 

(a)                                  modify any requirement hereunder
that any particular action be taken by all Lenders or by Requisite Lenders
shall be effective unless consented to by each Lender;

 

(b)                                 modify this subsection 9.6, change
the definitions of “Requisite Lenders” or “Pro Rata Share” (except in
accordance with subsection 6.1(x)(B)), increase any Commitments (except in
accordance with subsection 6.1(x)(B)), reduce any fees described in subsection
2.3 (other than the fees to Agents referred to in subsection 2.3), release any
material Subsidiary Guarantor from its obligations under the Guaranty, Parent
from its obligations under the Parent Guaranty, or all or substantially all of
the collateral security (except in each case as otherwise specifically provided
for in the Loan Documents), or extend the Maturity Date, shall be made without
the consent of each Lender adversely affected thereby;

 

(c)                                  extend the time of payment of, or
reduce the amount of, any interest on or premium payable in respect of any Loan
or reduce the principal amount of or rate of interest on or any premium payable
in respect of any Loan (which shall in each case include the conversion of all
or any part of the Obligations into equity of any Loan Party), shall be made
without the consent of the Lender which has made such Loan; or

 

(d)                                 affect adversely the interests,
rights or obligations of any Agent, unless consented to by such Agent.

 

Administrative
Agent may, but shall have no obligation to, with the concurrence of any Lender,
execute amendments, modifications, waivers or consents on behalf of that
Lender.  Any waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
it was given.  No notice to or demand on
Company in any case shall entitle Company to any other or further notice or
demand in similar or other circumstances. 
Any amendment, modification, termination, waiver or consent effected in accordance
with this subsection 9.6 shall be binding upon each Lender at the time
outstanding, each future Lender and, if signed by Company, on Company.

 

Notwithstanding
anything in this subsection 9.6 to the contrary, this Agreement and the other
Loan Documents may be amended (or amended and restated) with the written
approval of Administrative Agent, Company and the lenders under the Incremental
Facility (and no other Lenders) to implement the Incremental Facility pursuant
to and in accordance with subsection 6.1(x).

 

9.7                               Independence
of Covenants.

 

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

 

86

 

9.8                               Notices.

 

Unless
otherwise specifically provided herein, any notice or other communication
herein required or permitted to be given shall be in writing and may be
personally served, telexed or sent by telefacsimile or United States mail or
courier service and shall be deemed to have been given when delivered in person
or by courier service, upon receipt of telefacsimile, or three Business Days
after depositing it in the United States mail with postage prepaid and properly
addressed; provided that notices to Agents shall not be effective until
received.  For the purposes hereof, the
address of each party hereto shall be as set forth under such party’s name on
the signature pages hereof or (i) as to Company and Agents, such other address
as shall be designated by such Person in a written notice delivered to the
other parties hereto and (ii) as to each other party, such other address as
shall be designated by such party in a written notice delivered to
Administrative Agent.

 

9.9                               Survival
of Representations,
Warranties and Agreements.

 

A.                                    All representations, warranties and
agreements made herein shall survive the execution and delivery of this
Agreement and the making of the Loans hereunder.

 

B.                                    Notwithstanding anything in this
Agreement or implied by law to the contrary, the agreements of Company set
forth in subsections 2.6D, 2.7, 9.2, 9.3 and 9.4 and the agreements of Lenders
set forth in subsections 8.2C, 8.4 and 9.5 shall survive the payment of the
Loans and the termination of this Agreement.

 

9.10                        Failure
or Indulgence Not Waiver;
Remedies Cumulative.

 

No failure or
delay on the part of any Agent or any Lender in the exercise of any power,
right or privilege hereunder or under any other Loan Document shall impair such
power, right or privilege or be construed to be a waiver of any default or
acquiescence therein, nor shall any single or partial exercise of any such
power, right or privilege preclude other or further exercise thereof or of any
other power, right or privilege.  All
rights and remedies existing under this Agreement and the other Loan Documents are
cumulative to, and not exclusive of, any rights or remedies otherwise
available.

 

9.11                        Marshalling;
Payments Set
Aside.

 

None of Agents
or Lenders shall be under any obligation to marshal any assets in favor of
Company or any other party or against or in payment of any or all of the
Obligations.  To the extent that Company
makes a payment or payments to Administrative Agent or Lenders (or to
Administrative Agent for the benefit of Lenders), or any of Agents or Lenders
enforce any security interests or exercise their rights of setoff, and such
payment or payments or the proceeds of such enforcement or setoff or any part
thereof are subsequently invalidated, declared to be fraudulent or
preferential, set aside and/or required to be repaid to a trustee, receiver or
any other party under any bankruptcy law, any other state or federal law,
common law or any equitable cause, then, to the extent of such recovery, the
obligation or part thereof originally intended to be satisfied, and all Liens,
rights and remedies therefor or related thereto, shall be revived and continued
in full force and effect as if such payment or payments had not been made or
such enforcement or setoff had not occurred.

 

9.12                        Severability.

 

In case any
provision in or obligation under this Agreement or the Notes shall be invalid,
illegal or unenforceable in any jurisdiction, the validity, legality and
enforceability of the remaining provisions

 

87

 

or obligations, or of such provision or obligation
in any other jurisdiction, shall not in any way be affected or impaired
thereby.

 

9.13                        Obligations Several; Independent Nature of Lenders’ Rights.

 

The
obligations of Lenders hereunder are several and no Lender shall be responsible
for the obligations or Commitments of any other Lender hereunder.  Nothing contained herein or in any other
Loan Document, and no action taken by Lenders pursuant hereto or thereto, shall
be deemed to constitute Lenders as a partnership, an association, a joint
venture or any other kind of entity. The amounts payable at any time hereunder
to each Lender shall be a separate and independent debt, and each Lender shall
be entitled to protect and enforce its rights arising out of this Agreement and
it shall not be necessary for any other Lender to be joined as an additional
party in any proceeding for such purpose.

 

9.14                        Headings.

 

Section and
subsection headings in this Agreement are included herein for convenience of
reference only and shall not constitute a part of this Agreement for any other
purpose or be given any substantive effect.

 

9.15                        APPLICABLE
LAW.

 

THIS
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 OF THE GENERAL
OBLIGATIONS LAW OF THE STATE OF NEW YORK), WITHOUT REGARD TO CONFLICTS OF LAWS
PRINCIPLES.

 

9.16                        Successors
and Assigns.

 

This Agreement
shall be binding upon the parties hereto and their respective successors and
assigns and shall inure to the benefit of the parties hereto and the successors
and assigns of Lenders (it being understood that Lenders’ rights of assignment
are subject to subsection 9.1).  Neither
Company’s rights or obligations hereunder nor any interest therein may be
assigned or delegated by Company without the prior written consent of all
Lenders.

 

9.17                        Consent to Jurisdiction and Service of Process.

 

ALL
JUDICIAL PROCEEDINGS BROUGHT AGAINST COMPANY ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY OBLIGATIONS THEREUNDER, MAY, TO
THE EXTENT PERMITTED UNDER APPLICABLE LAW, BE BROUGHT IN ANY STATE OR FEDERAL
COURT OF COMPETENT JURISDICTION IN THE STATE, COUNTY AND CITY OF NEW YORK.  BY EXECUTING AND DELIVERING THIS AGREEMENT,
COMPANY, FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY:

 

(I)                                    ACCEPTS GENERALLY AND UNCONDITIONALLY THE NONEXCLUSIVE
JURISDICTION AND TO THE EXTENT PERMITTED UNDER APPLICABLE LAW VENUE OF SUCH
COURTS;

 

(II)                                TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, WAIVES
ANY DEFENSE OF FORUM NON CONVENIENS;

 

88

 

(III)                            AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH
PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL,
RETURN RECEIPT REQUESTED, TO COMPANY AT ITS ADDRESS PROVIDED IN ACCORDANCE WITH
SUBSECTION 9.8;

 

(IV)                           AGREES THAT SERVICE AS PROVIDED IN CLAUSE (III) ABOVE
IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER COMPANY IN ANY SUCH
PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING
SERVICE IN EVERY RESPECT;

 

(V)                               AGREES THAT LENDERS RETAIN THE RIGHT TO SERVE PROCESS
IN ANY OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST COMPANY IN
THE COURTS OF ANY OTHER JURISDICTION; AND

 

(VI)                           AGREES THAT THE PROVISIONS OF THIS SUBSECTION 9.17
RELATING TO JURISDICTION AND VENUE SHALL BE BINDING AND ENFORCEABLE TO THE
FULLEST EXTENT PERMISSIBLE UNDER NEW YORK GENERAL OBLIGATIONS LAW SECTION
5-1402 OR OTHERWISE.

 

9.18                        Waiver
of Jury Trial.

 

EACH
OF THE PARTIES TO THIS AGREEMENT HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS
TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF
THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR ANY DEALINGS BETWEEN THEM
RELATING TO THE SUBJECT MATTER OF THIS LOAN TRANSACTION OR THE LENDER/BORROWER
RELATIONSHIP THAT IS BEING ESTABLISHED. 
The scope of this waiver is intended to be all-encompassing of any and
all disputes that may be filed in any court and that relate to the subject
matter of this transaction, including contract claims, tort claims, breach of
duty claims and all other common law and statutory claims.  Each party hereto acknowledges that this
waiver is a material inducement to enter into a business relationship, that each
has already relied on this waiver in entering into this Agreement, and that
each will continue to rely on this waiver in their related future
dealings.  Each party hereto further
warrants and represents that it has reviewed this waiver with its legal counsel
and that it knowingly and voluntarily waives its jury trial rights following
consultation with legal counsel.  THIS
WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN
WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS
SUBSECTION 9.18 AND EXECUTED BY EACH OF THE PARTIES HERETO), AND THIS WAIVER
SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR
MODIFICATIONS TO THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR TO ANY
OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE LOANS MADE HEREUNDER.  In the event of litigation, this Agreement
may be filed as a written consent to a trial by the court.

 

9.19                        Confidentiality.

 

Each Lender,
Agent and Arranger shall hold all non-public information obtained in connection
with this Agreement or obtained by it based on a review of the books and
records of Company or any of its Subsidiaries in accordance with such Lender’s,
Agent’s or Arranger’s customary procedures for handling confidential information
of this nature and in accordance with safe and sound banking practices, or if
the lender is not a bank, in accordance with safe and sound financial services
industry practices, it being understood and agreed by Company that in any event
a Lender may make disclosures to Affiliates

 

89

 

and professional advisors of such Lender or
disclosures reasonably required by (a) any bona fide assignee, transferee or
participant in connection with the contemplated assignment or transfer by such
Lender of any Loans or any participations therein or (b) by any direct or
indirect contractual counterparties in swap agreements or such contractual
counterparties’ professional advisors; provided that such contractual
counterparty or professional advisor to such contractual counterparty agrees in
writing to keep such information confidential to the same extent required of
Lenders hereunder, or disclosures required or requested by any governmental
agency or representative thereof or pursuant to legal process; provided
further that, (x) unless specifically prohibited by applicable law or court
order, each Lender, Agent and Arranger shall promptly notify Company of any
request by any governmental agency or representative thereof (other than any
request by the National Association of Insurance Commissioners or any request
in connection with any examination of the financial condition of such Lender by
any governmental agency) for disclosure of any such non-public information
prior to disclosure of such information and (y) prior to any such disclosure
pursuant to this subsection 9.19 each Lender, each Agent and Arranger, as the
case may be, shall require any such bona fide transferee, participant and
assignee to agree to be bound by this subsection 9.19 and to require such
Person to require any other Person to whom such Person discloses any such
non-public information to be similarly bound by this subsection 9.19; and provided
further that in no event shall any Lender be obligated or required to return
any materials furnished by Company or any of its Subsidiaries except as may be
required by an order of a court of competent jurisdiction and to the extent set
forth therein.

 

Notwithstanding
anything herein to the contrary, each Agent, Arranger and each Lender may
disclose to any and all persons, without limitation of any kind, any
information with respect to the U.S. federal income tax treatment and U.S.
federal income tax structure of the transactions contemplated hereby and all
materials of any kind (including opinions or other tax analyses) that are
provided to such Agent, Arranger or such Lender relating to such tax treatment
and tax structure.

 

9.20                        Counterparts;
Effectiveness.

 

This Agreement
and any amendments, waivers, consents or supplements hereto or in connection
herewith may be executed in any number of counterparts and by different parties
hereto in separate counterparts, each of which when so executed and delivered
shall be deemed an original, but all such counterparts together shall constitute
but one and the same instrument; signature pages may be detached from multiple
separate counterparts and attached to a single counterpart so that all
signature pages are physically attached to the same document.  This Agreement shall become effective upon
the execution of a counterpart hereof by each of the parties hereto and receipt
by Company and Agents of written or telephonic notification of such execution
and authorization of delivery thereof.

 

9.21                        Maximum
Amount.

 

A.                                    It is the intention of Company and
Lenders to conform strictly to the usury and similar laws relating to interest
from time to time in force, and all agreements between the Loan Parties and
their respective Subsidiaries and Lenders, whether now existing or hereafter
arising and whether oral or written, are hereby expressly limited so that in no
contingency or event whatsoever, whether by acceleration of maturity hereof or
otherwise, shall the amount paid or agreed to be paid in the aggregate to
Lenders as interest (whether or not designated as interest, and including any
amount otherwise designated but deemed to constitute interest by a court of
competent jurisdiction) hereunder or under the other Loan Documents or in any
other agreement given to secure the Indebtedness or obligations of Company to
Lenders, or in any other document evidencing, securing or pertaining to the
Indebtedness evidenced hereby, exceed the maximum amount permissible under
applicable usury or such other laws (the “Maximum
Amount”).  If under any
circumstances whatsoever fulfillment of any provision hereof, or any of the
other Loan

 

90

 

Documents, at the
time performance of such provision shall be due, shall involve exceeding the
Maximum Amount, then, ipso facto,
the obligation to be fulfilled shall be reduced to the Maximum Amount.  For the purposes of calculating the actual
amount of interest paid and/or payable hereunder in respect of laws pertaining
to usury or such other laws, all sums paid or agreed to be paid to the holder
hereof for the use, forbearance or detention of the Indebtedness of Company
evidenced hereby, outstanding from time to time shall, to the extent permitted
by applicable law, be amortized, pro-rated, allocated and spread from the
date of disbursement of the proceeds of the Notes until payment in full of all
of such Indebtedness, so that the actual rate of interest on account of such
Indebtedness is uniform through the term hereof.  The terms and provisions of this subsection shall control and
supersede every other provision of all agreements between Company or any
endorser of the Notes and Lenders.

 

B.                                    If under any circumstances any
Lender shall ever receive an amount which would exceed the Maximum Amount, such
amount shall be deemed a payment in reduction of the principal amount of the
Loans and shall be treated as a voluntary prepayment under subsection 2.4B(i)
and shall be so applied in accordance with subsection 2.4 hereof or if such
excessive interest exceeds the unpaid balance of the Loans and any other
Indebtedness of Company in favor of such Lender, the excess shall be deemed to
have been a payment made by mistake and shall be refunded to Company.

 

[Remainder of page
intentionally left blank]

 

91

 

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

 

	
   

  	
  DECRANE AIRCRAFT HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Richard J. Kaplan

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President, Chief Financial

  Officer, Secretary and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Notice Address:

  	
  2361 Rosecrans Avenue, Suite 180

  
	
   

  	
   

  	
  El Segundo, CA  90245

  
	
   

  	
   

  	
  Tel: 310.725.9123

  
	
   

  	
   

  	
  Fax: 310.643.0746

  
	
   

  	
   

  	
  Attention: Richard. J Kaplan

  
						

 

S-1

 

	
   

  	
  CREDIT SUISSE FIRST BOSTON,

  
	
   

  	
  Acting through its Cayman Islands Branch,

  as a Lender and as Administrative Agent and

  Syndication Agents

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  	
  Eleven Madison Avenue

  
	
   

  	
   

  	
  New York, New York 10010

  
	
   

  	
   

  	
  Tel: 212.325.9936

  
	
   

  	
   

  	
  Fax: 212.325.8304

  
	
   

  	
   

  	
  Attn:  Agency Group

  
					

 

S-2

 

	
   

  	
  [Name of Lender]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  Notice Address:

  

 

S-2Exhibit 10.53

                      FIRST AMENDMENT TO SUBLEASE AGREEMENT

BY THIS AGREEMENT, made this 15th day of November, 2003, the Sublease Agreement
dated October 23rd, 2002 by and between Alcatel USA Sourcing, L.P., as
("Sublandlord") and Spectrum Organic Products, Inc. as ("Subtenant"), for the
Sublease of office space at 5341 Old Redwood Highway, 4th Floor, in Petaluma, CA
is hereby amended in the following respects:

1.   This First Amendment to Lease shall commence on January 1, 2004 and expire
     under the same terms as the Sublease Agreement. Notwithstanding the
     foregoing, Sublandlord hereby agrees to allow sublease access to the
     additional Sublet Premises for the installation of subtenant improvements
     and to allow for an earlier occupancy by Subtenant if Subtenant so desires.
     The Subtenant improvements are limited to the installation of modular
     cubicle partitions, electrical service to the exterior walls and data and
     telecommunications cabling from its 4th floor suite. Sublandlord and
     Guarantor must still obtain approval of Landlord in accordance with the
     terms and provisions of the Sublease and the master lease to which it is
     subject, including but not limited to Paragraphs 8(d) and 8(e) of the
     master lease.

2.   The Consent to Sublease (the "Consent") dated November 13th, 2002 by and
     between Redwood Business Park IV, LLC, successor-in-interest to G & W
     /Copley Redwood Business Park, L.P., successor-in-interest to G & W/Redwood
     Associates Joint Venture, ("Landlord"), Alcatel USA Sourcing, L.P., a
     Texas limited partnership, successor-in-interest to DSC Communications
     Corporation and DSC Technologies Corporation ("Tenant"), Spectrum Organic
     Products, Inc., a California corporation ("Subtenant"), and Alcatel USA,
     Inc., a Delaware corporation ("Guarantor"), is hereby amended such that the
     term "Sublease" as used therein shall mean and refer to the Sublease as
     amended by this First Amendment to Sublease. Except for such amendment, the
     Consent remains in full force and effect. Landlord is executing this First
     Amendment solely for the purpose of amending the Consent as provided in
     this Section 2.

3.   The Sublet Premises shall be adjusted to reflect the expansion of Subtenant
     of approximately 1,961 rentable square feet at 5341 Old Redwood Highway,
     1st Floor, as outlined on the attached expansion premises exhibit. The
     total Sublet Premises will contain approximately 18,625 RSF.

4.   The Monthly Rental for the term shall be adjusted as follows:

     Period                                               Monthly Base Rent
     ---------                                            -----------------
     January 1, 2004---January 31, 2004                       $16,875.00
     February 1, 2004 through end of Sublease Term            $23,477.35

5.   All other terms and conditions of said Sublease Agreement shall remain in
     full force and effect.

                         [SIGNATURES ON FOLLOWING PAGE]

                                                                     Page 1 of 2

<PAGE>

IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the day
and year first above written.

"Landlord"
REDWOOD BUSINESS PARK IV, LLC,
a Delaware limited liability company

By:  G&W/Copley Redwood Business
     Park, L.P., a California limited partnership

     By:  G&W/McDowell Partners, LLC,
          a California Limited liability company,
          its General Partner

          By:  G&W Venture, LLC,
               Managing Member

               By:  /s/  Matthew T. White
                  -------------------------------
                         Matthew T. White
                         Manager

"Sublandlord"/"Tenant"

ALCATEL USA SOURCING, L.P.,
--------------------------------
a Texas limited partnership

By:  /s/  Nancy H. Greer
   -----------------------------
          Nancy H. Greer
Its Sr. Vice President and CFO

"Subtenant"

SPECTRUM ORGANIC PRODUCTS, INC.,
--------------------------------
a California corporation

By:  /s/  Robert B. Fowles
   -----------------------------
          Robert B. Fowles
Its Chief Financial Officer

"Guarantor"

ALCATEL USA GP, INC.,
--------------------------------
a Delaware corporation

By:  /s/  Nancy H. Greer
   -----------------------------
          Nancy H. Greer
Its Sr. Vice President and CFO

                                                                     Page 2 of 2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]