Document:

Exhibit 10.46

 

Silicon Valley Bank

 

Amendment
to Loan Agreement

 

	
  Borrower:

  	
  BroadVision, Inc.

  
	
   

  	
   

  
	
  Dated:

  	
  November 9, 2004

  

 

THIS AMENDMENT TO LOAN AGREEMENT (this “Amendment”)
is
entered into between SILICON VALLEY BANK (“Bank”) and the borrower named above
(referred to herein as the “Borrower”).

 

Reference
is made to that certain Amended and Restated Loan and Security Agreement dated
as of March 31, 2002 between Bank and Borrower, as amended or otherwise
modified from time to time (referred to herein as the “Loan Agreement”).  (Capitalized terms used but not defined in
this Amendment, shall have the meanings set forth in the Loan Agreement.)

 

Reference
is also made to the proposed subordinated debt financing transaction with those
identified buyers under that proposed Securities Purchase Agreement with
Borrower containing those terms as are generally as set forth in drafts thereof
as have been provided to Bank, all of which documentation and agreements, when
finalized, are to be determined to be acceptable to Bank in its good faith
business judgment (referred to herein as the “Subordinated Financing”).

 

Effective
as of the date hereof, the parties hereto hereby agree as follows:

 

1.                                      Release of Certain Items of Collateral. 
The Borrower has requested that the Bank release its lien in
certain items of Collateral as are specifically set forth on Exhibit A attached
hereto (the “Identified Equipment Assets”). 
Bank is agreeable to Borrower’s request and therefore, and Bank hereby
releases its lien and security interest in the Identified Equipment Assets and
Bank agrees to file appropriate UCC amendments to effect such release of lien
and security interest.

 

2.                                      Limited Waiver. 
Borrower has failed to satisfy the minimum cash covenant as set forth in
Section 6.7(A) of the Loan Agreement from October 1, 2004 through and
including the date hereof and further Borrower has failed to satisfy the
revenue financial covenant set forth in Section 6.7(B) for the period ending
September 30, 2004 (the “Existing Violations”). Borrower has requested that
Bank waive the Events of Default arising from the Existing Violations.  Bank is agreeable to the requests of the
Borrower, subject to the terms and conditions hereof, and therefore Bank hereby
waives the Events of Default arising from the Existing Violations.

 

It is understood by the
parties hereto, however, that such waiver does not constitute a waiver or
suspension of any other provision or term of the Loan Agreement or any related

 

 

document,
nor an agreement to waive or suspend compliance, in the future, with any
financial covenant or any other provision or term of the Loan Agreement or any
related document.

 

3.                                      Fee.   Borrower shall pay to Bank a waiver fee in the
amount of $10,000 concurrently herewith, which shall be in addition to interest
and to all other amounts payable under the Loan Agreement, and which shall be
non-refundable.

 

4.                                      Representations True.   Borrower represents and warrants to Bank that
all representations and warranties in the Loan Agreement, as modified hereby,
are true and correct.

 

5.                                      General Provisions.  This
Amendment, the Loan Agreement, any prior written amendments and modifications
to the Loan Agreement signed by Bank and the Borrower, and the other written
documents and agreements between Bank and the Borrower set forth in full all of
the representations and agreements of the parties with respect to the subject
matter hereof and supersede all prior discussions, representations, agreements
and understandings between the parties with respect to the subject hereof.  Except as herein expressly modified, all of
the terms and provisions of the Loan Agreement, and all other documents and
agreements between Bank and the Borrower shall continue in full force and
effect and the same are hereby ratified and confirmed.  This Amendment may be executed in any number
of counterparts, which when taken together shall constitute one and the same
agreement.

 

IN
WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date
first written above.

 

	
  Borrower:

  	
  Silicon:

  
	
   

  	
   

  
	
  BROADVISION, INC.

  	
  SILICON VALLEY BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
  /s/ William E. Meyer

  	
   

  	
  By

  	
  /s/ Amanda Peters

  	
   

  
	
  Title

  	
  Chief Financial Officer

  	
   

  	
  Title

  	
  Vice President

  	
   

  
										

 

2

 

EXHIBIT A

 

1st Floor Furniture

 

Reception Room

•                  One
Chair

•                  Reception
desk

•                  Credenza
unit

•                  Two
arm chairs

•                  One
end table

 

Lobby Area

•                  One
couch

•                  Two
chairs

•                  One
table

 

Five Cubicles each with

•                  One
Light Mounted under large shelf

•                  One
White Board

•                  One
Large Book Shelf

•                  Four
Small Shelves

•                  Four
Angled Document Shelves

•                  One
3 Drawer file cabinet (partially included)

•                  One
2 Drawer file cabinet (partially included)

 

Three Standard Offices,
each with

•                  One
Desk

•                  One
White Board

•                  One
Overhead Locking Bookcase

•                  One
3 Drawer File Cabinet (partially included)

•                  One
2 Drawer File Cabinet (partially included)

•                  Four
Small Shelves

 

Thirteen Computer Training Stations, each with
(Newbury Street Conf Rm.)

•                  One
Chair

 

Five Cubicles with only
partition units and no other components

•

 

Two Cubicles each with

•                  One
Light Mounted under large shelf

•                  Four
Angled Document Shelves

•                  One
3 Drawer file cabinet (partially included)

•                  One
2 Drawer file cabinet (partially included)

 

Shipping Room with

•                  One
Desk unit

•                  One
steel rack unit

•                  Two
wood tables

 

Two Standard Offices each
with

•                  One
Desk

•                  One
White Board

 

 

•                  One
Overhead Locking Bookcase

•                  One
3 Drawer File Cabinet (partially included)

•                  One
2 Drawer File Cabinet (partially included)

•                  Four
Small Shelves

 

Thirteen Computer Training Stations, each with one
chair (in Harvard Square room)

 

One Large Conference Room (Garden Room) with 

•                  One
Large Conference Table

•                  9
chairs

•                  1
audio/visual cart

 

Seven Round Cafeteria Tables

•                  assortment
of chairs

•                  One
Microwave

•                  One
water dispenser/filter

•                  One
refrigerator

 

2nd Floor Furniture

 

The following furniture is used by Bladelogic:

 

Forty-four cubicles each
with

•                  One
Light Mounted under large shelf

•                  One
White Board

•                  One
Large Book Shelf

•                  Four
Small Shelves

•                  Four
Angled Document Shelves

•                  One
3 Drawer file cabinet (partially included)

•                  One
2 Drawer file cabinet (partially included)

 

One Executive Offices
each with

•                  One
Workstation Chair

•                  Two
Guest Chairs

•                  One
White Board

•                  One
Overhead Locking Bookcase

•                  One
3 Drawer File Cabinet

•                  One
2 Drawer File Cabinet

•                  Four
Small Shelves

•                  Small
round table

 

One Large Conference Rooms, each with

•                  One
Wood large Conference Table

•                  Two
Whiteboards

 

Six “motel” cubes, each
with

•                  One
Light Mounted under Small shelf

•                  Two
3 Drawer file cabinet (partially included)

 

11 Standard offices

•                  One
Workstation Chair

 

 

•                  One
White Board

•                  One
Overhead Locking Bookcase

•                  One
3 Drawer File Cabinet (partially included)

•                  One
2 Drawer File Cabinet (partially included)

•                  Four
Small Shelves

 

The
following furniture is in unoccupied space on the 2nd Floor:

 

11 Standard office

•                  Six
partially and/or unfurnished

•                  Five
furnished with

•                  desk

•                  file
cabinet

•                  shelf

•                  light
fixture

 

Eight cubes

•                  2
partially furnished

•                  Six
furnished with

•                  Desk

•                  Shelf

•                  Light
fixture

 

Two Hotel cubes

 

3rd Floor Furniture

 

The following furniture is used by BroadVision:

 

Forty Cubicles, each with

•                  One
Desk

•                  One
Light Mounted under large shelf

•                  One
White Board

•                  One
Large Book Shelf

•                  Four
Small Shelves

•                  Four
Angled Document Shelves

•                  One
3 Drawer file cabinet

•                  One
2 Drawer file cabinet

 

Nine Standard Offices,
each with

•                  One
Workstation Chair

•                  One
Desk

•                  Two
Guest Chairs

•                  One
White Board

•                  One
Overhead Locking Bookcase

•                  One
3 Drawer File Cabinet

•                  One
2 Drawer File Cabinet

•                  Four
Small Shelves

 

 

Two Small Conference Rooms, each
with

•                  One
Wood large Conference Table

•                  Two
Whiteboards

 

The following furniture is used by Unveil:

 

Thirty Two Cubicles each with

•                  One
Desk

•                  One
Light Mounted under large shelf

•                  One
White Board

•                  One
Large Book Shelf

•                  Four
Small Shelves

•                  Four
Angled Document Shelves

•                  One
3 Drawer file cabinet

•                  One
2 Drawer file cabinet

 

Lab Space with

•                  Six
Workstation Chairs

•                  One
3 Drawer File Cabinet

•                  One
2 Drawer File Cabinet

•                  One
Trash Can

 

Nine Standard offices, each with

•                  One
Desk

•                  One
Workstation Chair

•                  One
White Board

•                  One
Overhead Locking Bookcase

•                  One
2 Drawer File Cabinet

•                  Four
Small Shelves

•                  One
Phone

•                  One
Trash Can

 

4th Floor Furniture

 

The
following furniture is used by Scansoft:

 

Eighty Five Cubicles, each
with

•                  One
Light Mounted under large shelf

•                  One
White Board

•                  One
Large Book Shelf

•                  Four
Small Shelves

•                  Four
Angled Document Shelves

•                  One
3 Drawer file cabinet

•                  One
2 Drawer file cabinet

 

One Executive Office with

•                  One
Workstation Chair

•                  Two
Guest Chairs

•                  One
White Board

•                  One
Overhead Locking Bookcase

•                  One
3 Drawer File Cabinet

•                  One
2 Drawer File Cabinet

•                  Four
Small Shelves

•                  Small
round table with four chairs

 

Twenty Standard Offices,
each with

•                  One
Workstation Chair

•                  One
Desk

•                  Two
Guest Chairs

•                  One
White Board

•                  One
Overhead Locking Bookcase

•                  One
3 Drawer File Cabinet

•                  One
2 Drawer File Cabinet

•                  Four
Small Shelves

 

 

One Large Conference Room with

•                  One
Wood large Conference Table

•                  Two
Whiteboards

 

Two Small Conference Room, each with

•                  One
Wood large Conference Table

•                  Two
Whiteboards

 

Two Large “Motel” Cubes,
each with

•                  One
Desk

•                  One
Light Mounted under Small shelf

•                  Two
3 Drawer file cabinet

 

Nine Small “Motel” Cubes,
each with 

•                  One
Workstation Chair

•                  One
Desk

 

5th Floor Furniture

 

The
following furniture is used by Scansoft:

 

Twenty One Cubicles with

•                  One
Light Mounted under large shelf

•                  One
White Board

•                  One
Large Book Shelf

•                  Four
Small Shelves

•                  Four
Angled Document Shelves

•                  One
3 Drawer file cabinet

•                  One
2 Drawer file cabinet

 

Three Standard Offices
with

•                  One
Workstation Chair

•                  One
Desk

•                  Two
Guest Chairs

•                  One
White Board

•                  One
Overhead Locking Bookcase

•                  One
3 Drawer File Cabinet

•                  One
2 Drawer File Cabinet

•                  Four
Small Shelves

 

Two Small Conference Room

•                  One
Wood large Conference Table

•                  Two
Whiteboards

 

 

Equipment
List

 

Universal
Power Supply Equipment.

•                  Manufacturer:
Exide Electronics

•                  Type:Powerware

•                  Model:
Plus 50

•                  Part
Number: P050031610001

•                  Serial
Number: EN153ZAA01 – BroadVision Owned and shared with Unveil.

•                  Serial
Number: EM335ZAA06 – BroadVision Owned but Scansoft given exclusive use rights
during its sublease.

 

Computer Racks

•                  45
racks in server room.

•                  BroadVision
uses 25 racks.

•                  Scansoft
uses 17 ( 9 in separate cage)

•                  Unveil
uses 3 racks.

 

Network and Telco Rooms

•                  8
telco racks

•                  Nortel
Phone Switch

 

Other
Systems:

•                  C-cure
Card Key Security System: Located in 3rd floor IDF room.

•                  Supported
by Siemens on a time and materials basis.

•                  Camera
security system: First Line Digital Surveillance System with an Integral
Technologies Inc. digital recording system.

•                  One
Expresso Machine (in 3rd Floor Common Area)

•                  One Refrigerator
(in 3rd Floor Common Area)

•                  One Microwave
(in 3rd Floor Common Area)

•                  Two Data Air air
conditioning units dedicated for use for the Server Room 

 

The Universal Power
Supply Equipment, Computer Racks and Network and Telco Room Equipment and
components of the Other Systems are located on the 3rd Floor of the Building in
the Operations Rooms or in the Common Areas of the 3rd floor.  Other components of the Other Systems are
located at different locations in or on the Building.Exhibit 10.1

 

 

CREDIT AGREEMENT

 

among

 

NASH-FINCH COMPANY,

 

VARIOUS LENDERS,

 

DEUTSCHE BANK TRUST COMPANY AMERICAS,

as Administrative Agent,

 

HARRIS TRUST AND SAVINGS BANK,

as Syndication Agent,

 

and

 

GENERAL ELECTRIC CAPITAL CORPORATION and

U.S. BANK NATIONAL ASSOCIATION,

as Documentation Agents,

 

 

Dated as of November 12, 2004

 

 

 

DEUTSCHE BANK SECURITIES INC.,

as Sole Lead Arranger and Sole Book Running Manager

 

 

TABLE OF CONTENTS

 

	
  SECTION 1.

  	
  Amount and Terms of Credit

  	
   

  
	
   

  	
  1.01

  	
  The
  Commitments

  	
   

  
	
   

  	
  1.02

  	
  Minimum Amount of Each Borrowing

  	
   

  
	
   

  	
  1.03

  	
  Notice of Borrowing

  	
   

  
	
   

  	
  1.04

  	
  Disbursement of Funds

  	
   

  
	
   

  	
  1.05

  	
  Notes

  	
   

  
	
   

  	
  1.06

  	
  Conversions

  	
   

  
	
   

  	
  1.07

  	
  Pro Rata Borrowings

  	
   

  
	
   

  	
  1.08

  	
  Interest

  	
   

  
	
   

  	
  1.09

  	
  Interest
  Periods

  	
   

  
	
   

  	
  1.10

  	
  Increased
  Costs, Illegality, etc.

  	
   

  
	
   

  	
  1.11

  	
  Compensation

  	
   

  
	
   

  	
  1.12

  	
  Change of Lending Office

  	
   

  
	
   

  	
  1.13

  	
  Replacement of Lenders

  	
   

  
	
   

  	
  1.14

  	
  Incremental Commitments

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
  Letters of Credit

  	
   

  
	
   

  	
  2.01

  	
  Letters
  of Credit

  	
   

  
	
   

  	
  2.02

  	
  Maximum Letter of Credit Outstandings; Final Maturities

  	
   

  
	
   

  	
  2.03

  	
  Letter
  of Credit Requests; Minimum Stated Amount

  	
   

  
	
   

  	
  2.04

  	
  Letter of Credit Participations

  	
   

  
	
   

  	
  2.05

  	
  Agreement to Repay Letter of Credit Drawings

  	
   

  
	
   

  	
  2.06

  	
  Increased
  Costs

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
  Commitment Commission; Fees; Reductions of
  Commitment

  	
   

  
	
   

  	
  3.01

  	
  Fees

  	
   

  
	
   

  	
  3.02

  	
  Voluntary Termination of Commitments

  	
   

  
	
   

  	
  3.03

  	
  Mandatory Reduction of Commitments

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  4.

  	
  Prepayments;
  Payments; Taxes

  	
   

  
	
   

  	
  4.01

  	
  Voluntary Prepayments

  	
   

  
	
   

  	
  4.02

  	
  Mandatory Repayments

  	
   

  
	
   

  	
  4.03

  	
  Method and Place of Payment

  	
   

  
	
   

  	
  4.04

  	
  Net
  Payments

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  5.

  	
  Conditions
  Precedent to Credit Events on the Initial Borrowing Date

  	
   

  
	
   

  	
  5.01

  	
  Effective Date; Notes

  	
   

  
	
   

  	
  5.02

  	
  Officer’s Certificate

  	
   

  
	
   

  	
  5.03

  	
  Opinions of Counsel

  	
   

  
	
   

  	
  5.04

  	
  Corporate Documents; Proceedings; etc.

  	
   

  
	
   

  	
  5.05

  	
  Refinancing

  	
   

  
	
   

  	
  5.06

  	
  Adverse
  Change; Governmental and Third Party Approvals; etc.

  	
   

  
	
   

  	
  5.07

  	
  Litigation

  	
   

  
	
   

  	
  5.08

  	
  Pledge
  Agreement

  	
   

  

 

i

 

	
   

  	
  5.09

  	
  Security Agreement

  	
   

  
	
   

  	
  5.10

  	
  Subsidiaries Guaranty

  	
   

  
	
   

  	
  5.11

  	
  Mortgages;
  Title Insurance; Survey

  	
   

  
	
   

  	
  5.12

  	
  Solvency Certificate; Insurance Certificates

  	
   

  
	
   

  	
  5.13

  	
  Fees, etc.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  6.

  	
  Conditions
  Precedent to each Incurrence of Incremental Term Loans

  	
   

  
	
   

  	
  6.01

  	
  Occurrence of Syndication Date and Initial TL Commitment Termination
  Date

  	
   

  
	
   

  	
  6.02

  	
  Incremental Commitment Agreement; Related Documentation

  	
   

  
	
   

  	
  6.03

  	
  Incremental Term Notes

  	
   

  
	
   

  	
  6.04

  	
  Officer’s
  Certificate

  	
   

  
	
   

  	
  6.05

  	
  Other
  Conditions Specified in the Relevant Incremental Commitment Agreement

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  7.

  	
  Conditions
  Precedent to All Credit Events

  	
   

  
	
   

  	
  7.01

  	
  No
  Default; Representations and Warranties

  	
   

  
	
   

  	
  7.02

  	
  Notice
  of Borrowing; Letter of Credit Request

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  8.

  	
  Representations,
  Warranties and Agreements

  	
   

  
	
   

  	
  8.01

  	
  Organizational
  Status

  	
   

  
	
   

  	
  8.02

  	
  Power and Authority; Enforceability

  	
   

  
	
   

  	
  8.03

  	
  No
  Violation

  	
   

  
	
   

  	
  8.04

  	
  Approvals

  	
   

  
	
   

  	
  8.05

  	
  Financial Statements; Financial Condition; Undisclosed Liabilities

  	
   

  
	
   

  	
  8.06

  	
  Litigation

  	
   

  
	
   

  	
  8.07

  	
  True
  and Complete Disclosure

  	
   

  
	
   

  	
  8.08

  	
  Use
  of Proceeds; Margin Regulations

  	
   

  
	
   

  	
  8.09

  	
  Tax Returns and Payments

  	
   

  
	
   

  	
  8.10

  	
  Compliance with ERISA

  	
   

  
	
   

  	
  8.11

  	
  The Security Documents

  	
   

  
	
   

  	
  8.12

  	
  Properties

  	
   

  
	
   

  	
  8.13

  	
  Capitalization

  	
   

  
	
   

  	
  8.14

  	
  Subsidiaries

  	
   

  
	
   

  	
  8.15

  	
  Compliance with Statutes, etc.

  	
   

  
	
   

  	
  8.16

  	
  Investment Company Act

  	
   

  
	
   

  	
  8.17

  	
  Public Utility Holdings Company Act

  	
   

  
	
   

  	
  8.18

  	
  Environmental Matters

  	
   

  
	
   

  	
  8.19

  	
  Employment and Labor Relations

  	
   

  
	
   

  	
  8.20

  	
  Intellectual Property, etc.

  	
   

  
	
   

  	
  8.21

  	
  Indebtedness

  	
   

  
	
   

  	
  8.22

  	
  Insurance

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  9.

  	
  Affirmative
  Covenants

  	
   

  
	
   

  	
  9.01

  	
  Information Covenants

  	
   

  
	
   

  	
  9.02

  	
  Books,
  Records and Inspections; Annual Meetings

  	
   

  
	
   

  	
  9.03

  	
  Insurance

  	
   

  
	
   

  	
  9.04

  	
  Existence;
  Franchises

  	
   

  
	
   

  	
  9.05

  	
  Compliance
  with Statutes, etc.

  	
   

  

 

ii

 

	
   

  	
  9.06

  	
  Compliance with Environmental Laws

  	
   

  
	
   

  	
  9.07

  	
  ERISA

  	
   

  
	
   

  	
  9.08

  	
  End
  of Fiscal Years; Fiscal Quarters

  	
   

  
	
   

  	
  9.09

  	
  Performance
  of Obligations

  	
   

  
	
   

  	
  9.10

  	
  Payment
  of Taxes

  	
   

  
	
   

  	
  9.11

  	
  Use
  of Proceeds

  	
   

  
	
   

  	
  9.12

  	
  Additional Security; Further Assurances; etc.

  	
   

  
	
   

  	
  9.13

  	
  Foreign Subsidiaries Security

  	
   

  
	
   

  	
  9.14

  	
  Permitted Acquisitions

  	
   

  
	
   

  	
  9.15

  	
  Ownership of Subsidiaries; etc.

  	
   

  
	
   

  	
  9.16

  	
  Existing Senior Subordinated Notes Redemption

  	
   

  
	
   

  	
  9.17

  	
  Interest Rate Protection

  	
   

  
	
   

  	
  9.18

  	
  Landlord
  Waivers

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  10.

  	
  Negative
  Covenants

  	
   

  
	
   

  	
  10.01

  	
  Liens

  	
   

  
	
   

  	
  10.02

  	
  Consolidation,
  Merger, Purchase or Sale of Assets, etc.

  	
   

  
	
   

  	
  10.03

  	
  Restricted Payments

  	
   

  
	
   

  	
  10.04

  	
  Indebtedness

  	
   

  
	
   

  	
  10.05

  	
  Advances,
  Investments and Loans

  	
   

  
	
   

  	
  10.06

  	
  Transactions
  with Affiliates

  	
   

  
	
   

  	
  10.07

  	
  Capital Expenditures

  	
   

  
	
   

  	
  10.08

  	
  Consolidated Interest Coverage Ratio

  	
   

  
	
   

  	
  10.09

  	
  Total
  Leverage Ratio

  	
   

  
	
   

  	
  10.10

  	
  Senior
  Secured Leverage Ratio

  	
   

  
	
   

  	
  10.11

  	
  Consolidated
  Working Capital Ratio

  	
   

  
	
   

  	
  10.12

  	
  Limitations
  on Voluntary Prepayments and Modifications of Indebtedness; Modifications of
  Certificate of Incorporation, By-Laws and Certain Other Agreements, etc.

  	
   

  
	
   

  	
  10.13

  	
  Limitation on Certain Restrictions on Subsidiaries

  	
   

  
	
   

  	
  10.14

  	
  Limitation on Issuance of Capital Stock

  	
   

  
	
   

  	
  10.15

  	
  Business

  	
   

  
	
   

  	
  10.16

  	
  Limitation on Creation of Subsidiaries

  	
   

  
	
   

  	
  10.17

  	
  No Other “Designated Senior Indebtedness”

  	
   

  
	
   

  	
  10.18

  	
  Changes To Legal Names; Organizational Identification Numbers,
  Jurisdiction or Type of Organization

  	
   

  
	
   

  	
  10.19

  	
  Existing
  Non-Material Subsidiaries

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  11.

  	
  Events
  of Default

  	
   

  
	
   

  	
  11.01

  	
  Payments

  	
   

  
	
   

  	
  11.02

  	
  Representations,
  etc.

  	
   

  
	
   

  	
  11.03

  	
  Covenants

  	
   

  
	
   

  	
  11.04

  	
  Default
  Under Other Agreements

  	
   

  
	
   

  	
  11.05

  	
  Bankruptcy,
  etc.

  	
   

  
	
   

  	
  11.06

  	
  ERISA

  	
   

  
	
   

  	
  11.07

  	
  Security Documents

  	
   

  
	
   

  	
  11.08

  	
  Guaranties

  	
   

  
	
   

  	
  11.09

  	
  Judgments

  	
   

  

 

iii

 

	
   

  	
  11.10

  	
  Change
  of Control

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  12.

  	
  Definitions
  and Accounting Terms

  	
   

  
	
   

  	
  12.01

  	
  Defined
  Terms

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  13.

  	
  The
  Agents

  	
   

  
	
   

  	
  13.01

  	
  Appointment

  	
   

  
	
   

  	
  13.02

  	
  Nature
  of Duties

  	
   

  
	
   

  	
  13.03

  	
  Lack
  of Reliance on the Agents

  	
   

  
	
   

  	
  13.04

  	
  Certain
  Rights of the Agents

  	
   

  
	
   

  	
  13.05

  	
  Reliance

  	
   

  
	
   

  	
  13.06

  	
  Indemnification

  	
   

  
	
   

  	
  13.07

  	
  Each
  Agent in its Individual Capacity

  	
   

  
	
   

  	
  13.08

  	
  Holders

  	
   

  
	
   

  	
  13.09

  	
  Resignation by the Agents

  	
   

  
	
   

  	
  13.10

  	
  The Syndication Agent and the Documentation Agents

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION
  14.

  	
  Miscellaneous

  	
   

  
	
   

  	
  14.01

  	
  Payment of Expenses, etc.

  	
   

  
	
   

  	
  14.02

  	
  Right
  of Setoff

  	
   

  
	
   

  	
  14.03

  	
  Notices

  	
   

  
	
   

  	
  14.04

  	
  Benefit of Agreement; Assignments; Participations

  	
   

  
	
   

  	
  14.05

  	
  No
  Waiver; Remedies Cumulative

  	
   

  
	
   

  	
  14.06

  	
  Payments
  Pro Rata

  	
   

  
	
   

  	
  14.07

  	
  Calculations;
  Computations

  	
   

  
	
   

  	
  14.08

  	
  GOVERNING
  LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL

  	
   

  
	
   

  	
  14.09

  	
  Counterparts

  	
   

  
	
   

  	
  14.10

  	
  Effectiveness

  	
   

  
	
   

  	
  14.11

  	
  Headings
  Descriptive

  	
   

  
	
   

  	
  14.12

  	
  Amendment or Waiver; etc.

  	
   

  
	
   

  	
  14.13

  	
  Survival

  	
   

  
	
   

  	
  14.14

  	
  Domicile
  of Loans

  	
   

  
	
   

  	
  14.15

  	
  Register

  	
   

  
	
   

  	
  14.16

  	
  Confidentiality

  	
   

  
	
   

  	
  14.17

  	
  Limitation on Additional Amounts

  	
   

  
	
   

  	
  14.18

  	
  USA
  Patriot Act Notice

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE
  1.01

  	
  Commitments

  
	
  SCHEDULE
  2.01

  	
  Existing
  Letters of Credit

  
	
  SCHEDULE
  5.11

  	
  Mortgaged
  Property

  
	
  SCHEDULE
  8.12

  	
  Real
  Property

  
	
  SCHEDULE
  8.14

  	
  Subsidiaries

  
	
  SCHEDULE
  8.21

  	
  Existing
  Indebtedness

  
	
  SCHEDULE
  8.22

  	
  Insurance

  
	
  SCHEDULE
  9.07

  	
  ERISA

  
	
  SCHEDULE
  9.18

  	
  Leaseholds
  Subject to Landlord Waivers/Bailee Agreements

  
					

 

iv

 

	
  SCHEDULE
  10.01(iii)

  	
  Existing
  Liens

  
	
  SCHEDULE
  10.02(xiii)

  	
  Surplus
  Property

  
	
  SCHEDULE
  10.05(iii)

  	
  Existing
  Investments

  
	
  SCHEDULE
  10.18

  	
  Legal Names;
  Organizational Identification Numbers; Jurisdiction of Organization; Type of
  Organization; etc.

  
	
  SCHEDULE
  14.03

  	
  Notice
  Information

  
	
   

  	
   

  
	
  EXHIBIT A-1

  	
  Form of
  Notice of Borrowing

  
	
  EXHIBIT A-2

  	
  Form of
  Notice of Conversion/Continuation

  
	
  EXHIBIT B-1

  	
  Form of
  Initial Term Note

  
	
  EXHIBIT B-2

  	
  Form of
  Revolving Note

  
	
  EXHIBIT B-3

  	
  Form of
  Swingline Note

  
	
  EXHIBIT B-4

  	
  Form of
  Incremental Term Note

  
	
  EXHIBIT C

  	
  Incremental
  Commitment Agreement

  
	
  EXHIBIT D

  	
  Form of
  Letter of Credit Request

  
	
  EXHIBIT E

  	
  Form of
  Section 4.04(b)(ii) Certificate

  
	
  EXHIBIT F

  	
  Form of
  Opinion of Shearman & Sterling LLP

  
	
  EXHIBIT G

  	
  Form of Officers’
  Certificate

  
	
  EXHIBIT H

  	
  Form of
  Pledge Agreement

  
	
  EXHIBIT I

  	
  Form of
  Security Agreement

  
	
  EXHIBIT J

  	
  Form of
  Subsidiaries Guaranty

  
	
  EXHIBIT K

  	
  Form of
  Solvency Certificate

  
	
  EXHIBIT L

  	
  Form of
  Compliance Certificate

  
	
  EXHIBIT M

  	
  Form of
  Assignment and Assumption Agreement

  
	
  EXHIBIT N

  	
  Form of
  Intercompany Note

  

 

v

 

CREDIT AGREEMENT, dated as of November 12, 2004, among
NASH-FINCH COMPANY, a Delaware corporation (the “Borrower”), the Lenders party
hereto from time to time, DEUTSCHE BANK TRUST COMPANY AMERICAS, as
Administrative Agent, Harris Trust and Savings Bank, as Syndication Agent (in
such capacity, the “Syndication Agent”), and General Electric Capital
Corporation and U.S. Bank National Association, as Documentation Agents (in
such capacity, the “Documentation Agents”, and each, a “Documentation Agent”),
and (all capitalized terms used herein and defined in Section 12 are used
herein as therein defined).

W
I  T  N  E  S  S  E  T  H:

 

WHEREAS, subject to and upon the terms and conditions
set forth herein, the Lenders are willing to make available to the Borrower the
respective credit facilities provided for herein; 

 

NOW, THEREFORE, IT IS AGREED:

 

SECTION 1.  Amount and Terms of Credit.

 

1.01  The
Commitments.  (a)  Subject to and upon the terms and conditions
set forth herein, each Lender with an Initial Term Loan Commitment severally
agrees to make a term loan or term loans (each an “Initial Term Loan” and,
collectively, the “Initial Term Loans”) to the Borrower, which Initial Term
Loans:

 

(i)  shall be
incurred pursuant to a single drawing to be made on the Redemption Date for the
purposes described in Section 8.08(a)(i);

 

(ii) shall be denominated in Dollars; 

 

(iii) shall not exceed for any Lender, in initial
principal amount for the Initial Term Loans being made by such Lender on the
Redemption Date, that amount which equals the Initial Term Loan Commitment of
such Lender as in effect on the Redemption Date (before giving effect to any
reduction thereto on such date pursuant to Section 3.03(b)); and

 

(iv) except as hereinafter provided, shall, at the
option of the Borrower, be incurred and maintained as, and/or converted into,
Base Rate Loans or Eurodollar Loans, provided that, (A) except as
otherwise specifically provided in Section 1.10(b), all Initial Term Loans
comprising the same Borrowing shall at all times be of the same Type, and (B)
unless either the Administrative Agent otherwise agrees in its sole discretion
or has determined that the Syndication Date has occurred (at which time this
clause (B) shall no longer be applicable), prior to the 90th day following the
Initial Borrowing Date, Initial Term Loans may only be incurred and maintained
as, and/or converted into, Eurodollar Loans so long as all such outstanding
Eurodollar Loans, together with all outstanding

 

 

Revolving Loans that are maintained as Eurodollar
Loans, are subject to an Interest Period (which, unless the Administrative
Agent otherwise agrees in its sole discretion, may not begin prior to the fifth
Business Day after the Initial Borrowing Date) of one month which begins and
ends on the same day.  

 

Once repaid, Initial Term
Loans incurred hereunder may not be reborrowed.

 

(b)           Subject to
and upon the terms and conditions set forth herein, each Lender with a
Revolving Loan Commitment severally agrees to make, at any time and from time
to time on or after the Initial Borrowing Date and prior to the Revolving Loan
Maturity Date, a revolving loan or revolving loans (each a “Revolving Loan”
and, collectively, the “Revolving Loans”) to the Borrower, which Revolving
Loans:

 

(i) shall be denominated in Dollars;

 

(ii) shall, at the option of the Borrower, be incurred
and maintained as, and/or converted into, Base Rate Loans or Eurodollar Loans, provided
that, (A) except as otherwise specifically provided in Section 1.10(b), all
Revolving Loans comprising the same Borrowing shall at all times be of the same
Type, and (B) unless either the Administrative Agent otherwise agrees in its
sole discretion or has determined that the Syndication Date has occurred (at
which time this clause (B) shall no longer be applicable), prior to the 90th
day following the Initial Borrowing Date, Revolving Loans may only be incurred
and maintained as, and/or converted into, Eurodollar Loans so long as all such
outstanding Eurodollar Loans, together with all outstanding Initial Term Loans
that are maintained as Eurodollar Loans, are subject to an Interest Period
(which, unless the Administrative Agent otherwise agrees in its sole discretion,
may not begin prior to the fifth Business Day after the Initial Borrowing Date)
of one month which begins and ends on the same day;

 

(iii) may be repaid and reborrowed in accordance with
the provisions hereof; and 

 

(iv) shall not exceed for any such Lender at any time
outstanding that aggregate principal amount which, when added to the product of
(x) such Lender’s RL Percentage and (y) the sum of (I) the aggregate amount of
all Letter of Credit Outstandings (exclusive of Unpaid Drawings which are repaid
with the proceeds of, and simultaneously with the incurrence of, the respective
incurrence of Revolving Loans) at such time and (II) the aggregate principal
amount of all Swingline Loans (exclusive of Swingline Loans which are repaid
with the proceeds of, and simultaneously with the incurrence of, the respective
incurrence of Revolving Loans) then outstanding, equals the Revolving Loan
Commitment of such Lender at such time.

 

(c)           Subject to
and upon the terms and conditions set forth herein, the Swingline Lender agrees
to make, at any time and from time to time on or after the Initial Borrowing
Date and prior to the Swingline Expiry Date, a revolving loan or revolving
loans (each a “Swingline Loan” and, collectively, the “Swingline Loans”) to the
Borrower, which Swingline Loans:

 

(i) shall be incurred and maintained as Base Rate
Loans; 

 

2

 

(ii) shall be denominated in Dollars;

 

(iii) may be repaid and reborrowed in accordance with
the provisions hereof;

 

(iv) shall not exceed in aggregate principal amount at
any time outstanding, when added to the aggregate principal amount of all
Revolving Loans then outstanding and the aggregate amount of all Letter of
Credit Outstandings at such time, an amount equal to the Total Revolving Loan
Commitment at such time; and 

 

(v) shall not exceed in aggregate principal amount at
any time outstanding the Maximum Swingline Amount.  

 

Notwithstanding anything
to the contrary contained in this Section 1.01(c), (i) the Swingline Lender
shall not be obligated to make any Swingline Loans at a time when a Lender
Default exists with respect to an RL Lender unless the Swingline Lender has
entered into arrangements satisfactory to it and the Borrower to eliminate the
Swingline Lender’s risk with respect to the Defaulting Lender’s or Defaulting
Lenders’ participation in such Swingline Loans, including by cash
collateralizing such Defaulting Lender’s or Defaulting Lenders’ RL Percentage
of the outstanding Swingline Loans, and (ii) the Swingline Lender shall not
make any Swingline Loan after it has received written notice from the Borrower,
any other Credit Party, the Administrative Agent or the Required Lenders
stating that (x) one or more of the conditions specified in Section 5 or 7 are
not then satisfied, (y) the making of such Swingline Loans would violate this
Section 1.01(c), or (z) a Default or an Event of Default exists and is
continuing, until such time as the Swingline Lender shall have received (A) in
the case of a notice of the type described in preceding clause (x), (y) or (z),
written notice of rescission of all such notices (I) that any such condition
specified in Sections 5 and 7 are not then satisfied, (II) that the making of
such Swingline Loans would violate this Section 1.01(c) or (III) of Default or
Event of Default, as the case may be, from the party or parties originally
delivering such notice or notices or (B) in the case of a notice of the type
described in preceding clause (z), written notice of the waiver of such Default
or Event of Default by the Required Lenders.

 

(d)           On any
Business Day, the Swingline Lender may, in its sole discretion, give notice to
the RL Lenders that the Swingline Lender’s outstanding Swingline Loans shall be
funded with one or more Borrowings of Revolving Loans (provided that
such notice shall be deemed to have been automatically given upon the
occurrence of a Default or an Event of Default under Section 11.05 or upon the
exercise of any of the remedies provided in the last paragraph of Section 11),
in which case one or more Borrowings of Revolving Loans constituting Base Rate
Loans (each such Borrowing, a “Mandatory Borrowing”) shall be made on the
immediately succeeding Business Day by all RL Lenders (other than the Swingline
Lender) pro  rata
based on each such RL Lender’s RL Percentage (determined before giving effect
to any termination of the Revolving Loan Commitments pursuant to the last
paragraph of Section 11) and the proceeds thereof shall be applied directly by
the Swingline Lender to repay the Swingline Lender for such outstanding
Swingline Loans.  Each RL Lender hereby
irrevocably agrees to make Revolving Loans upon one Business Day’s notice
pursuant to each Mandatory Borrowing in the amount and in the manner specified
in the preceding sentence and on the date specified in writing by the Swingline
Lender notwithstanding (i) the amount of the Mandatory Borrowing may not comply
with the Minimum Borrowing Amount otherwise

 

3

 

required hereunder, (ii) whether any conditions
specified in Section 7 are then satisfied, (iii) whether a Default or an Event
of Default then exists, (iv) the date of such Mandatory Borrowing, and (v) the
amount of the Total Revolving Loan Commitment at such time.  In the event that any Mandatory Borrowing
cannot for any reason be made on the date otherwise required above (including,
without limitation, as a result of the commencement of a proceeding under the
Bankruptcy Code with respect to the Borrower), then each RL Lender hereby
agrees that it shall forthwith purchase (as of the date the Mandatory Borrowing
would otherwise have occurred, but adjusted for any payments received from the
Borrower on or after such date and prior to such purchase) from the Swingline Lender
such participations in the outstanding Swingline Loans as shall be necessary to
cause the RL Lenders to share in such Swingline Loans ratably based upon their
respective RL Percentages (determined before giving effect to any termination
of the Revolving Loan Commitments pursuant to the last paragraph of Section
11), provided that (x) all interest payable on the Swingline Loans shall
be for the account of the Swingline Lender until the date as of which the
respective participation is required to be purchased and, to the extent
attributable to the purchased participation, shall be payable to the
participant from and after such date and (y) at the time any purchase of
participations pursuant to this sentence is actually made, the purchasing RL
Lender shall be required to pay the Swingline Lender interest on the principal
amount of participation purchased for each day from and including the day upon
which the Mandatory Borrowing would otherwise have occurred to but excluding
the date of payment for such participation, at the overnight Federal Funds Rate
for the first three days and at the rate otherwise applicable to Revolving
Loans maintained as Base Rate Loans hereunder for each day thereafter.

 

(e)           Subject to
Section 1.14, the other terms and conditions set forth herein and the relevant
Incremental Commitment Agreement, each Lender with an Incremental Term Loan
Commitment severally agrees to make a term loan or term loans (each, an “Incremental
Term Loan” and, collectively, the “Incremental Term Loans”) to the Borrower,
which Incremental Term Loans:  

 

(i) only may be incurred on one or more Incremental
Term Loan Borrowing Dates (which dates, in any event (x) shall not be earlier
than the later of (A) the Syndication Date and (B) the Initial TL Commitment
Termination Date and (y) shall not be later than the Revolving Loan Maturity
Date);

 

(ii) except as hereafter provided, shall, at the
option of the Borrower, be incurred and maintained as, and/or converted into,
Base Rate Loans or Eurodollar Loans, provided that all Incremental Term
Loans made as part of the same Borrowing shall, unless otherwise specifically
provided herein, consist of Incremental Term Loans of the same Type;

 

(iii) shall be made by each such Lender in that
aggregate principal amount which does not exceed the Incremental Term Loan
Commitment of such Lender (as set forth in the relevant Incremental Commitment
Agreement) on the respective Incremental Term Loan Borrowing Date; and

 

(iv) shall not at any time exceed, when added to the
aggregate amount of Incremental Revolving Loan Commitments theretofore provided
pursuant to Section 1.14

 

4

 

and the respective Incremental Commitment Agreement,
$100,000,000 in aggregate principal amount for all Incremental Term Loans made
by all Incremental Lenders pursuant to this Agreement and the various
Incremental Commitment Agreements.  

 

Once repaid, Incremental
Term Loans may not be reborrowed.

 

1.02  Minimum Amount of Each Borrowing.  The aggregate principal amount of each
Borrowing of Loans under a respective Tranche shall not be less than the
Minimum Borrowing Amount applicable to such Tranche.  More than one Borrowing may occur on the same
date, but at no time shall there be outstanding as Eurodollar Loans under any
Tranche a greater number of Borrowings than the Maximum Eurodollar Borrowing
Number applicable to such Tranche.

 

1.03  Notice
of Borrowing.  (a)  Whenever the Borrower desires to incur (x)
Eurodollar Loans hereunder, it shall give the Administrative Agent at the
Notice Office at least three Business Days’ prior notice of each Eurodollar
Loan to be incurred hereunder (provided that any such notice shall be
deemed to have been given on a certain day only if given before 1:30 P.M. (New
York time) on such day) and (y) Base Rate Loans hereunder (excluding Swingline
Loans and Revolving Loans made pursuant to a Mandatory Borrowing), it shall
give the Administrative Agent at the Notice Office prior notice of each Base
Rate Loan to be incurred hereunder by no later than 1:00 P.M. (New York time)
on the date that a Base Rate Loan is to be incurred.  Each such notice (each a “Notice of Borrowing”),
except as otherwise expressly provided in Section 1.10, shall be irrevocable,
executed by an Authorized Officer and be in writing (including via facsimile
or, in accordance with Section 14.04, electronic mail), or by telephone
promptly confirmed in writing, in each case (including via facsimile and
electronic mail) in the form of Exhibit A-1, appropriately completed to
specify:  (i) the aggregate principal
amount of the Loans to be incurred pursuant to such Borrowing, (ii) the date of
such Borrowing (which shall be a Business Day), (iii) whether the Loans being
incurred pursuant to such Borrowing shall constitute Initial Term Loans,
Revolving Loans or Incremental Term Loans (and, if Incremental Term Loans, the
Tranche under which such Incremental Term Loans are to be made, as designated
in the relevant Incremental Commitment Agreement), (iv) whether the Loans being
incurred pursuant to such Borrowing are to be initially maintained as Base Rate
Loans or, to the extent permitted hereunder, Eurodollar Loans and, if
Eurodollar Loans, the initial Interest Period to be applicable thereto, and (v)
in the case of a Borrowing of Revolving Loans the proceeds of which are to be
utilized to finance, in whole or in part, the purchase price of a Permitted
Acquisition, the amount of the Total Unutilized Revolving Loan Commitment after
giving effect to such Borrowing. 
Notwithstanding anything to the contrary contained in this Section
1.03(a), if Incremental Term Loans are being made which are being added to (and
will form part of) an existing Tranche of Term Loans, then the Incremental Term
Loans being so extended shall be added to the existing Borrowings of the
respective Tranche in accordance with the requirements of Section 1.14 and the
respective Notice of Borrowing shall be completed consistently therewith.  The Administrative Agent shall promptly give
each Lender which is required to make Loans of the Tranche specified in the
respective Notice of Borrowing, notice of such proposed Borrowing, of such
Lender’s proportionate share thereof and of the other matters required by the
immediately preceding sentence to be specified in the Notice of Borrowing.

 

5

 

(b)           (i)  Whenever the Borrower desire to incur
Swingline Loans hereunder, the Borrower shall give the Swingline Lender no
later than 2:30 P.M. (New York time) on the date that a Swingline Loan is to be
incurred, written notice or telephonic notice promptly confirmed in writing of
each Swingline Loan to be incurred hereunder. 
Each such notice shall be irrevocable and specify in each case (A) the
date of Borrowing (which shall be a Business Day), and (B) the aggregate
principal amount of the Swingline Loans to be incurred pursuant to such
Borrowing.

 

(ii)           Mandatory
Borrowings shall be made upon the notice specified in Section 1.01(d), with the
Borrower irrevocably agreeing, by its incurrence of any Swingline Loan, to the
making of the Mandatory Borrowings as set forth in Section 1.01(d).

 

(c)           Without in
any way limiting the obligation of the Borrower to confirm in writing any
telephonic notice of any Borrowing or prepayment of Loans, the Administrative
Agent or the Swingline Lender, as the case may be, may act without liability
upon the basis of telephonic notice of such Borrowing or prepayment, as the
case may be, believed by the Administrative Agent or the Swingline Lender, as
the case may be, in good faith to be from an Authorized Officer of the
Borrower, prior to receipt of written confirmation.  In each such case, the Borrower hereby waives
the right to dispute the Administrative Agent’s or Swingline Lender’s record of
the terms of such telephonic notice of such Borrowing or prepayment of Loans,
as the case may be, absent manifest error.

 

1.04  Disbursement of Funds.  No later than 4:30 P.M. (New York time) on
the date specified in each Notice of Borrowing (or (x) in the case of Swingline
Loans, no later than 4:00 P.M. (New York time) on the date specified pursuant
to Section 1.03(b)(i) or (y) in the case of Mandatory Borrowings, no later than
1:00 P.M. (New York time) on the date specified in Section 1.01(d)), each
Lender with a Commitment of the respective Tranche will make available its pro  rata
portion (determined in accordance with Section 1.07) of each such Borrowing
requested to be made on such date (or in the case of Swingline Loans, the
Swingline Lender will make available the full amount thereof).  All such amounts will be made available in
Dollars and in immediately available funds at the Payment Office, and the
Administrative Agent will, except in the case of Revolving Loans made pursuant
to a Mandatory Borrowing, make available to the Borrower at the Payment Office
the aggregate of the amounts so made available by the Lenders.  Unless the Administrative Agent shall have
been notified by any Lender prior to the date of Borrowing that such Lender
does not intend to make available to the Administrative Agent such Lender’s
portion of any Borrowing to be made on such date, the Administrative Agent may
assume that such Lender has made such amount available to the Administrative
Agent on such date of Borrowing and the Administrative Agent may (but shall not
be obligated to), in reliance upon such assumption, make available to the
Borrower a corresponding amount.  If such
corresponding amount is not in fact made available to the Administrative Agent
by such Lender, the Administrative Agent shall be entitled to recover such
corresponding amount on demand from such Lender. If such Lender does not pay
such corresponding amount forthwith upon the Administrative Agent’s demand
therefor, the Administrative Agent shall promptly notify the Borrower and the
Borrower shall immediately pay such corresponding amount to the Administrative
Agent.  The Administrative Agent also
shall be entitled to recover on demand from such Lender or the Borrower, as the
case may be, interest on such corresponding amount in respect of each day from
the date such corresponding amount was made available by the

 

6

 

Administrative Agent to the
Borrower until the date such corresponding amount is recovered by the
Administrative Agent, at a rate per annum equal to (i) if recovered from such
Lender, the overnight Federal Funds Rate for the first three days and at the
interest rate otherwise applicable to such Loans for each day thereafter and
(ii) if recovered from the Borrower, the rate of interest applicable to the
respective Borrowing, as determined pursuant to Section 1.08. Nothing in this
Section 1.04 shall be deemed to relieve any Lender from its obligation to make
Loans hereunder or to prejudice any rights which the Borrower may have against
any Lender as a result of any failure by such Lender to make Loans hereunder.

 

1.05  Notes.  (a)  The Borrower’s obligation to pay the
principal of, and interest on, the Loans made by each Lender shall be evidenced
in the Register maintained by the Administrative Agent pursuant to Section
14.15 and shall, if requested by such Lender, also be evidenced (i) if Initial
Term Loans, by a promissory note duly executed and delivered by the Borrower
substantially in the form of Exhibit B-1, with blanks appropriately completed
in conformity herewith (each an “Initial Term Note” and, collectively, the “Initial
Term Notes”), (ii) if Revolving Loans, by a promissory note duly executed and
delivered by the Borrower substantially in the form of Exhibit B-2, with blanks
appropriately completed in conformity herewith (each a “Revolving Note” and,
collectively, the “Revolving Notes”), (iii) if Swingline Loans, by a promissory
note duly executed and delivered by the Borrower substantially in the form of
Exhibit B-3, with blanks appropriately completed in conformity herewith (the “Swingline
Note”) and (iv) if Incremental Term Loans, by a promissory note duly executed
and delivered by the Borrower substantially in the form of Exhibit B-4, with
blanks appropriately completed in conformity herewith and the relevant
Incremental Commitment Agreement (each, an “Incremental Term Note” and,
collectively, the “Incremental Term Notes”). 

 

(b)           The
Initial Term Note issued to each Lender that has an Initial Term Loan
Commitment or outstanding Initial Term Loans shall (i) be executed by the
Borrower, (ii) be payable to such Lender or its registered assigns and be dated
the Initial Borrowing Date (or, if issued after the Initial Borrowing Date, be
dated the date of issuance thereof), (iii) be in a stated principal amount
equal to the sum of the (x) Initial Term Loans made by such Lender on the
Initial Borrowing Date plus (y) the aggregate amount of the Initial Term
Loan Commitment of such Lender on such date (after giving effect to the Initial
Term Loans incurred on such date (or if issued after the Initial Borrowing Date
be in a stated principal amount equal to the aggregate principal amount of
Incremental Term Loans plus the Initial Term Loan Commitment (if any) of
such Lender at such time), (iv) be payable in the outstanding principal amount
of Initial Term Loans evidenced thereby, (v) mature on the Initial Term Loan
Maturity Date, (vi) bear interest as provided in the appropriate clause of
Section 1.08 in respect of the Base Rate Loans and Eurodollar Loans, as the
case may be, evidenced thereby, (vii) be subject to voluntary prepayment as
provided in Section 4.01, and mandatory repayment as provided in Section 4.02,
and (viii) be entitled to the benefits of this Agreement and the other Credit
Documents.

 

(c)           The
Revolving Note issued to each Lender that has a Revolving Loan Commitment or
outstanding Revolving Loans shall (i) be executed by the Borrower, (ii) be
payable to such Lender or its registered assigns and be dated the Initial
Borrowing Date (or, if issued after the Initial Borrowing Date, be dated the
date of the issuance thereof), (iii) be in a stated principal amount equal to
the Revolving Loan Commitment of such Lender (or, if issued after the
termination thereof, be in a stated principal amount equal to the outstanding
Revolving

 

7

 

Loans of such Lender at such time) and be payable in
the outstanding principal amount of the Revolving Loans evidenced thereby, (iv)
mature on the Revolving Loan Maturity Date, (v) bear interest as provided in
the appropriate clause of Section 1.08 in respect of the Base Rate Loans and
Eurodollar Loans, as the case may be, evidenced thereby, (vi) be subject to
voluntary prepayment as provided in Section 4.01, and mandatory repayment as
provided in Section 4.02, and (vii) be entitled to the benefits of this
Agreement and the other Credit Documents.

 

(d)           The
Swingline Note issued to the Swingline Lender shall (i) be executed by the
Borrower, (ii) be payable to the Swingline Lender or its registered assigns and
be dated the Initial Borrowing Date, (iii) be in a stated principal amount
equal to the Maximum Swingline Amount and be payable in the outstanding
principal amount of the Swingline Loans evidenced thereby from time to time,
(iv) mature on the Swingline Expiry Date, (v) bear interest as provided in the
appropriate clause of Section 1.08 in respect of the Base Rate Loans evidenced
thereby, (vi) be subject to voluntary prepayment as provided in Section 4.01,
and mandatory repayment as provided in Section 4.02, and (vii) be entitled to
the benefits of this Agreement and the other Credit Documents.

 

(e)           The
Incremental Term Note issued to each Lender that has an Incremental Term Loan
Commitment or outstanding Incremental Term Loans of a given Tranche shall (i)
be executed by the Borrower, (ii) be payable to the order of such Lender or its
registered assigns and be dated the date of the issuance thereof, (iii) be in a
stated principal amount equal to the sum of (x) the principal amount of
outstanding Incremental Term Loans of such Lender of the respective Tranche on
such date plus (y) the aggregate amount of the Incremental Term Loan
Commitment of such Lender (if any) at such time, (iv) be payable in the principal
amount of Incremental Term Loans evidenced thereby, (v) mature on the
Incremental Term Loan Maturity Date of the respective Tranche, (vi) bear
interest as provided in the appropriate clause of Section 1.08 in respect of
the Base Rate Loans and Eurodollar Loans, as the case may be, evidenced
thereby, (vii) be subject to voluntary prepayment as provided in Section 4.01,
and mandatory repayment as provided in Section 4.02 and (viii) be entitled to
the benefits of this Agreement and the other Credit Documents.  In connection with the foregoing, it is
understood and agreed that (x) any Lender that has Incremental Term Loans
outstanding pursuant to more than one Tranche shall be entitled, upon its
request, to receive an Incremental Term Note with respect to each Tranche of
its outstanding Incremental Term Loans and (y) if any Lender extends additional
Incremental Term Loans pursuant to an existing Tranche of Incremental Term
Loans where such Lender already had outstanding Incremental Term Loans, such Lender
shall be entitled to request a new Incremental Term Note for such Tranche
reflecting the aggregate principal amount of Incremental Term Loans of such
Lender of such Tranche then outstanding. 

 

(f)            Each
Lender will note on its internal records the amount of each Loan made by it and
each payment in respect thereof and will prior to any transfer of any of its
Notes endorse on the reverse side thereof the outstanding principal amount of
Loans evidenced thereby.  Failure to make
any such notation or any error in such notation shall not affect the Borrower’s
obligations in respect of such Loans.

 

(g)           Notwithstanding
anything to the contrary contained above in this Section 1.05 or elsewhere in
this Agreement, Notes shall only be delivered to Lenders which at any time
specifically request the delivery of such Notes.  No failure of any Lender to request, obtain
or

 

8

 

possess a Note evidencing its Loans to the Borrower
shall affect or in any manner impair the obligations of the Borrower to pay the
Loans (and all related Obligations) incurred by the Borrower which would
otherwise be evidenced thereby in accordance with the requirements of this
Agreement, and shall not in any way affect the security or guaranties therefor
provided pursuant to the various Credit Documents.  Any Lender which does not have a Note
evidencing its outstanding Loans shall in no event be required to make the
notations otherwise described in preceding clause (e).  At any time when any Lender requests the
delivery of a Note to evidence any of its Loans, the Borrower shall promptly
execute and deliver to the respective Lender the requested Note in the
appropriate amount or amounts to evidence such Loans.

 

1.06  Conversions. 
The Borrower shall have the option to convert, on any Business Day, all
or a portion equal to at least the Minimum Borrowing Amount of the outstanding
principal amount of Loans (other than Swingline Loans which may not be
converted pursuant to this Section 1.06) made pursuant to one or more
Borrowings (so long as of the same Tranche) of one or more Types of Loans into
a Borrowing (of the same Tranche) of another Type of Loan, provided
that, (i) except as otherwise provided in Section 1.10(b), Eurodollar Loans may
be converted into Base Rate Loans only on the last day of an Interest Period
applicable to the Loans being converted and no such partial conversion of
Eurodollar Loans shall reduce the outstanding principal amount of such
Eurodollar Loans made pursuant to a single Borrowing to less than the Minimum
Borrowing Amount applicable thereto, (ii) unless the Required Lenders otherwise
agree, Base Rate Loans may only be converted into Eurodollar Loans if no
Default and no Event of Default is in existence on the date of the conversion,
(iii) unless the Administrative Agent otherwise agrees in its sole discretion
or has determined that the Syndication Date has occurred (at which time this
clause (iii) shall no longer be applicable), prior to the 90th day following
the Initial Borrowing Date, conversions of Base Rate Loans into Eurodollar
Loans shall be subject to the provisions of clause (B) of the proviso in each
of Sections 1.01(a)(v) and 1.01(b)(ii), and (iv) no conversion pursuant to this
Section 1.06 shall result in a greater number of Borrowings of Eurodollar Loans
than is permitted under Section 1.02. 
Each such conversion shall be effected by the Borrower by giving the
Administrative Agent at the Notice Office prior to 1:00 P.M. (New York time) at
least three Business Days’ prior notice (each a “Notice of
Conversion/Continuation”) in the form of Exhibit A-2, appropriately completed
to specify the Loans to be so converted, the Borrowing or Borrowings pursuant
to which such Loans were incurred and, if to be converted into Eurodollar
Loans, the Interest Period to be initially applicable thereto.  The Administrative Agent shall give each
Lender prompt notice of any such proposed conversion affecting any of its
Loans.  Upon any such conversion the
proceeds thereof will be deemed to be applied directly on the day of such
conversion to prepay the outstanding principal amount of the Loans being
converted.

 

1.07  Pro Rata Borrowings.  All Borrowings of Loans under this Agreement
shall be incurred from the Lenders pro rata on the basis of their Initial Term Loan
Commitments, Revolving Loan Commitments or Incremental Term Loan Commitments,
as the case may be.  It is understood
that no Lender shall be responsible for any default by any other Lender of its obligation
to make Loans hereunder and that each Lender shall be obligated to make the
Loans provided to be made by it hereunder, regardless of the failure of any
other Lender to make its Loans hereunder.

 

9

 

1.08  Interest.  (a)  The Borrower agrees to pay interest in
respect of the unpaid principal amount of each Base Rate Loan from the date of
Borrowing thereof until the earlier of (i) the maturity thereof (whether by
acceleration or otherwise) and (ii) the conversion of such Base Rate Loan to a Eurodollar
Loan pursuant to Section 1.06 or 1.09, as applicable, at a rate per annum which
shall be equal to the sum of the Applicable Margin plus the Base Rate each as
in effect from time to time.

 

(b)           The
Borrower agrees to pay interest in respect of the unpaid principal amount of
each Eurodollar Loan from the date of Borrowing thereof until the earlier of
(i) the maturity thereof (whether by acceleration or otherwise) and (ii) the
conversion of such Eurodollar Loan to a Base Rate Loan pursuant to Section
1.06, 1.09 or 1.10, as applicable, at a rate per annum which shall, during each
Interest Period applicable thereto, be equal to the sum of the Applicable
Margin as in effect from time to time during such Interest Period plus the
Eurodollar Rate for such Interest Period.

 

(c)           Overdue
principal and, to the extent permitted by law, overdue interest in respect of
each Loan shall, in each case, bear interest at a rate per annum equal to the
greater of (x) the rate which is 2% in excess of the rate then borne by such
Loans and (y) the rate which is 2% in excess of the rate otherwise applicable
to Base Rate Loans of the respective Tranche from time to time, and all other
overdue amounts payable hereunder and under any other Credit Document shall
bear interest at a rate per annum equal to the rate which is 2% in excess of
the rate applicable to Revolving Loans maintained as Base Rate Loans from time
to time.  Interest which accrues under
this Section 1.08(c) shall be payable on demand.

 

(d)           Accrued
(and theretofore unpaid) interest shall be payable (i) in respect of each Base
Rate Loan, (x) quarterly in arrears on each Quarterly Payment Date, (y) on the
date of any repayment or prepayment in full of all outstanding Base Rate Loans
of any Tranche, and (z) at maturity (whether by acceleration or otherwise) and,
after such maturity, on demand, and (ii) in respect of each Eurodollar Loan,
(x) on the last day of each Interest Period applicable thereto and, in the case
of an Interest Period in excess of three months, on each date occurring at
three month intervals after the first day of such Interest Period, and (y) on
the date of any repayment or prepayment (on the amount repaid or prepaid), at
maturity (whether by acceleration or otherwise) and, after such maturity, on demand.  

 

(e)           Upon each
Interest Determination Date, the Administrative Agent shall determine the
Eurodollar Rate for each Interest Period applicable to the respective
Eurodollar Loans and shall promptly notify the Borrower and the Lenders
thereof.  Each such determination shall,
absent manifest error, be final and conclusive and binding on all parties
hereto.

 

1.09  Interest Periods.  At the time the Borrower gives any Notice of
Borrowing or Notice of Conversion/Continuation in respect of the making of, or
conversion into, any Eurodollar Loan (in the case of the initial Interest
Period applicable thereto) or prior to 1:00 P.M. (New York time) on the third
Business Day prior to the expiration of an Interest Period applicable to such
Eurodollar Loan (in the case of any subsequent Interest Period), the Borrower
shall have the right to elect the interest period (each an “Interest Period”)
applicable to such Eurodollar Loan, which Interest Period shall, at the option
of the Borrower (but otherwise subject

 

10

 

to the provisions of clause (B)
of the proviso in each of Sections 1.01(a)(v) and 1.01(b)(ii)), be a one, two,
three or six month period, provided that (in each case):

 

(i)            all
Eurodollar Loans comprising a Borrowing shall at all times have the same
Interest Period;

 

(ii)           the
initial Interest Period for any Eurodollar Loan shall commence on the date of
Borrowing of such Eurodollar Loan (including the date of any conversion thereto
from a Base Rate Loan) and each Interest Period occurring thereafter in respect
of such Eurodollar Loan shall commence on the day on which the next preceding
Interest Period applicable thereto expires;

 

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

 

(iv)          if any
Interest Period for a Eurodollar Loan would otherwise expire on a day which is
not a Business Day, such Interest Period shall expire on the next succeeding
Business Day, unless such next succeeding Business Day occurs in the next
succeeding calendar month, in which case such Interest Period shall expire on
the next preceding Business Day;

 

(v)           unless the
Required Lenders otherwise agree, no Interest Period may be selected at any
time when a Default or an Event of Default is then in existence; and

 

(vi)          no Interest
Period in respect of any Borrowing of any Tranche of Loans shall be selected
which extends beyond the Maturity Date of such Tranche.

 

If upon the expiration of any Interest Period
applicable to a Borrowing of Eurodollar Loans, the Borrower has failed to
elect, or is not permitted to elect, a new Interest Period to be applicable to
such Eurodollar Loans as provided above, the Borrower shall be deemed to have
elected to convert such Eurodollar Loans into Base Rate Loans effective as of
the expiration date of such current Interest Period.

 

1.10  Increased Costs, Illegality, etc.  (a)  In
the event that any Lender shall have determined (which determination shall,
absent manifest error, be final and conclusive and binding upon all parties
hereto but, with respect to clause (i) below, may be made only by the
Administrative Agent):

 

(i)            on any
Interest Determination Date that, by reason of any changes arising after the
date of this Agreement affecting the interbank Eurodollar market, adequate and
fair means do not exist for ascertaining the applicable interest rate on the
basis provided for in the definition of Eurodollar Rate; or

 

(ii)           at any
time, that such Lender shall incur increased costs or reductions in the amounts
received or receivable hereunder with respect to any Eurodollar Loan because of
(x) any change since the Effective Date in any applicable law or governmental

 

11

 

rule, regulation, order,
guideline or request (whether or not having the force of law) or in the
interpretation or administration thereof and including the introduction of any
new law or governmental rule, regulation, order, guideline or request, such as,
for example, but not limited to:  (A) a
change in the basis of taxation of payment to any Lender of the principal of or
interest on the Loans or the Notes or any other amounts payable hereunder
(except for changes in the rate of tax on, or determined by reference to, the
net income or net profits of such Lender pursuant to the laws of the
jurisdiction in which it is organized or in which its principal office or
applicable lending office is located or any subdivision thereof or therein) or
(B) a change in official reserve requirements, but, in all events, excluding
reserves required under Regulation D to the extent included in the computation
of the Eurodollar Rate and/or (y) other circumstances arising since the
Effective Date affecting such Lender, the interbank Eurodollar market or the
position of such Lender in such market; or

 

(iii)          at
any time, that the making or continuance of any Eurodollar Loan has been made
(x) unlawful by any law or governmental rule, regulation or order, (y)
impossible by compliance by any Lender in good faith with any governmental
request (whether or not having force of law) or (z) impracticable as a result
of a contingency occurring after the Effective Date which materially and
adversely affects the interbank Eurodollar market;

 

then, and in any such event, such Lender (or the
Administrative Agent, in the case of clause (i) above) shall promptly give
notice (by telephone promptly confirmed in writing) to the Borrower and, except
in the case of clause (i) above, to the Administrative Agent of such
determination (which notice the Administrative Agent shall promptly transmit to
each of the other Lenders).  Thereafter
(x) in the case of clause (i) above, Eurodollar Loans shall no longer be
available until such time as the Administrative Agent notifies the Borrower and
the Lenders that the circumstances giving rise to such notice by the
Administrative Agent no longer exist, and any Notice of Borrowing or Notice of
Conversion/Continuation given by the Borrower with respect to Eurodollar Loans
which have not yet been incurred (including by way of conversion) shall be
deemed rescinded by the Borrower, (y) in the case of clause (ii) above, the
Borrower agrees to pay to such Lender, within five days after (or on such later
date or dates as such Lender may indicate in) such Lender’s written request
therefor, such additional amounts (in the form of an increased rate of, or a
different method of calculating, interest or otherwise as such Lender in its
sole discretion shall determine) as shall be required to compensate such Lender
for such increased costs or reductions in amounts received or receivable
hereunder (a written notice as to the additional amounts owed to such Lender,
showing in reasonable detail the basis for the calculation thereof, submitted
to the Borrower by such Lender shall, absent manifest error, be final and
conclusive and binding on all the parties hereto) and (z) in the case of clause
(iii) above, the Borrower shall take one of the actions specified in Section
1.10(b) as promptly as possible and, in any event, within the time period
required by law.

 

(b)           At any
time that any Eurodollar Loan is affected by the circumstances described in
Section 1.10(a)(ii), the Borrower may, and in the case of a Eurodollar Loan
affected by the circumstances described in Section 1.10(a)(iii), the Borrower
shall, either (x) if the affected Eurodollar Loan is then being made initially
or pursuant to a conversion, cancel such Borrowing by giving the Administrative
Agent telephonic notice (confirmed in writing) on the

 

12

 

same date that the Borrower was notified by the
affected Lender or the Administrative Agent pursuant to Section 1.10(a)(ii) or
(iii) or (y) if the affected Eurodollar Loan is then outstanding, upon at least
three Business Days’ written notice to the Administrative Agent, require the
affected Lender to convert such Eurodollar Loan into a Base Rate Loan, provided
that, if more than one Lender is affected at any time, then all affected
Lenders must be treated the same pursuant to this Section 1.10(b).

 

(c)           If any
Lender determines that after the Effective Date the introduction of or any
change in any applicable law or governmental rule, regulation, order,
guideline, directive or request (whether or not having the force of law)
concerning capital adequacy, or any change in interpretation or administration
thereof by the NAIC or any governmental authority, central bank or comparable
agency, will have the effect of increasing the amount of capital required or
expected to be maintained by such Lender or any corporation controlling such
Lender based on the existence of such Lender’s Commitments hereunder or its
obligations hereunder, then the Borrower agrees to pay to such Lender, within
five days after (or on such later date or dates as such Lender may indicate in)
its written demand therefor, such additional amounts as shall be required to
compensate such Lender or such other corporation for the increased cost to such
Lender or such other corporation or the reduction in the rate of return to such
Lender or such other corporation as a result of such increase of capital.  In determining such additional amounts, each
Lender will act reasonably and in good faith and will use averaging and
attribution methods which are reasonable, provided that such Lender’s
determination of compensation owing under this Section 1.10(c) shall, absent
manifest error, be final and conclusive and binding on all the parties
hereto.  Each Lender, upon determining
that any additional amounts will be payable pursuant to this Section 1.10(c),
will give prompt written notice thereof to the Borrower, which notice shall
show in reasonable detail the basis for calculation of such additional amounts.

 

1.11  Compensation. 
The Borrower agrees to compensate each Lender, upon its written request
(which request shall set forth in reasonable detail the basis for requesting
such compensation), for all losses, expenses and liabilities (including,
without limitation, any loss, expense or liability incurred by reason of the
liquidation or reemployment of deposits or other funds required by such Lender
to fund its Eurodollar Loans but excluding loss of anticipated profits) which
such Lender may sustain:  (i) if for any
reason (other than a default by such Lender or the Administrative Agent) a
Borrowing of, or conversion from or into, Eurodollar Loans does not occur on a
date specified therefor in a Notice of Borrowing or Notice of
Conversion/Continuation (whether or not withdrawn by the Borrower or deemed
withdrawn pursuant to Section 1.10(a)); (ii) if any prepayment or repayment
(including any prepayment or repayment made pursuant to Section 4.01, Section
4.02 or as a result of an acceleration of the Loans pursuant to Section 11) or
conversion of any of its Eurodollar Loans occurs on a date which is not the
last day of an Interest Period with respect thereto; (iii) if any prepayment of
any of its Eurodollar Loans is not made on any date specified in a notice of
prepayment given by the Borrower; or (iv) as a consequence of (x) any other
default by the Borrower to repay Eurodollar Loans when required by the terms of
this Agreement or any Note held by such Lender or (y) any election made
pursuant to Section 1.10(b).

 

1.12  Change of Lending Office.  Each Lender agrees that on the occurrence of
any event giving rise to the operation of Section 1.10(a)(ii) or (iii), Section
1.10(c), Section 2.06 or Section 4.04 with respect to such Lender, it will, if
requested by the Borrower, use reasonable

 

13

 

efforts (subject to overall
policy considerations of such Lender) to designate another lending office for
any Loans or Letters of Credit affected by such event, provided that
such designation is made on such terms that such Lender and its lending office
suffer no economic, legal or regulatory disadvantage, with the object of
avoiding the consequence of the event giving rise to the operation of such
Section.  Nothing in this Section 1.12
shall affect or postpone any of the obligations of the Borrower or the right of
any Lender provided in Sections 1.10, 2.06 and 4.04.

 

1.13  Replacement of Lenders.  (x)  If
any Lender becomes a Defaulting Lender or otherwise defaults in its obligations
to make Loans, (y) upon the occurrence of an event giving rise to the operation
of Section 1.10(a)(ii) or (iii), Section 1.10(c), Section 2.06 or Section 4.04
with respect to any Lender which results in such Lender charging to the
Borrower increased costs in excess of those being generally charged by the
other Lenders or (z) in the case of a refusal by a Lender to consent to certain
proposed changes, waivers, discharges or terminations with respect to this
Agreement which have been approved by the Required Lenders as (and to the
extent) provided in Section 14.12(b), the Borrower shall have the right, if no
Default or Event of Default then exists (or, in the case of preceding clause
(z), will exist immediately after giving effect to such replacement), to
replace such Lender (the “Replaced Lender”) with one or more other Eligible
Transferees, none of whom shall constitute a Defaulting Lender at the time of
such replacement (collectively, the “Replacement Lender”) and each of whom
shall be required to be reasonably acceptable to the Administrative Agent, provided
that (i) at the time of any replacement pursuant to this Section 1.13, the
Replacement Lender shall enter into one or more Assignment and Assumption
Agreements pursuant to Section 14.04(b) (and with all fees payable pursuant to
said Section 14.04(b) to be paid by the Replacement Lender) pursuant to which
the Replacement Lender shall acquire all of the Commitments and outstanding
Loans of, and in each case participations in Letters of Credit by, the Replaced
Lender and, in connection therewith, shall pay to (x) the Replaced Lender in
respect thereof an amount equal to the sum of (I) an amount equal to the
principal of, and all accrued interest on, all outstanding Loans of the
Replaced Lender, (II) an amount equal to all Unpaid Drawings that have been
funded by (and not reimbursed to) such Replaced Lender, together with all then
unpaid interest with respect thereto at such time, and (III) an amount equal to
all accrued, but theretofore unpaid, Fees owing to the Replaced Lender pursuant
to Section 3.01, (y) the respective Issuing Lender an amount equal to such
Replaced Lender’s RL Percentage of any Unpaid Drawing (which at such time
remains an Unpaid Drawing) to the extent such amount was not theretofore funded
by such Replaced Lender to such Issuing Lender and (z) the Swingline Lender an
amount equal to such Replaced Lender’s RL Percentage of any Mandatory Borrowing
to the extent such amount was not theretofore funded by such Replaced Lender to
the Swingline Lender and (ii) all obligations of the Borrower due and owing to
the Replaced Lender at such time (other than those specifically described in
clause (i) above in respect of which the assignment purchase price has been, or
is concurrently being, paid) shall be paid in full to such Replaced Lender
concurrently with such replacement.  Upon
the execution of the respective Assignment and Assumption Agreement, the
payment of amounts referred to in clauses (i) and (ii) above and, if so
requested by the Replacement Lender, delivery to the Replacement Lender of the
appropriate Note or Notes executed by the Borrower, the Replacement Lender
shall become a Lender hereunder and the Replaced Lender shall cease to
constitute a Lender hereunder, except with respect to indemnification
provisions under this Agreement (including, without limitation, Sections 1.10,
1.11, 2.06, 4.04, 13.06 and 14.01), which shall survive as to such Replaced
Lender.

 

14

 

1.14  Incremental Commitments.  (a)  So
long as no Default or Event of Default then exists or would result therefrom,
the Borrower shall, in consultation with the Administrative Agent, have the
right to request on one or more occasions prior to the respective Incremental
Commitment Expiry Date that one or more Lenders (and/or one or more other
Persons which will become Lenders as provided below) provide Incremental Term
Loan Commitments or Incremental Revolving Loan Commitments, in each case as
designated (with the approval of the Administrative Agent (which approval shall
not be unreasonably withheld or delayed if such designation is otherwise made
in accordance with the provisions of this Agreement)) in the relevant Incremental
Commitment Agreement and, subject to the terms and conditions contained in this
Agreement and the relevant Incremental Commitment Agreement, make Incremental
Term Loans or Revolving Loans, as the case may be, pursuant thereto, it being
understood and agreed, however, that:

 

(i)            no
Lender shall be obligated to provide an Incremental Commitment as a result of
any such request by the Borrower, and until such time, if any, as such Lender
has agreed in its sole discretion to provide an Incremental Commitment and
executed and delivered to the Administrative Agent an Incremental Commitment
Agreement as provided in clause (b) of this Section 1.14, such Lender shall not
be obligated to fund (x) any Incremental Term Loans or (y) any Revolving
Loans in excess of its Revolving Loan Commitment as in effect prior to giving
effect to any Incremental Revolving Loan Commitment provided pursuant to this
Section 1.14;

 

(ii)           except
as otherwise provided in clauses (x) and (xi) below, any Lender (or, in the
circumstances contemplated by clause (viii) below, any other Person which is an
Eligible Transferee) may so provide an Incremental Commitment without the
consent of any other Lender; 

 

(iii)          each
provision of Incremental Commitments pursuant to this Section 1.14 on a given
date shall be in a minimum aggregate amount (for all Lenders (including in the
circumstances contemplated by clause (viii) below, Eligible Transferees who
will become Lenders)) of $20,000,000;

 

(iv)          the
aggregate amount of all Incremental Commitments permitted to be provided
pursuant to this Section 1.14 shall not exceed $100,000,000;

 

(v)           (x)
each Incremental Commitment Agreement pursuant to which Incremental Term Loan
Commitments are being provided shall specifically designate (with the approval
of the Administrative Agent (which approval shall not be unreasonably withheld
or delayed if such designation is otherwise made in accordance with the
provisions of this Agreement)) the Tranche of the Incremental Term Loan
Commitments being provided thereunder (which Tranche shall be a new Tranche (i.e.,
not the same as any existing Tranche of Term Loans or Incremental Term Loan
Commitments) unless the requirements of following Section 1.14(c) are
satisfied) and (y) each Incremental Commitment Agreement pursuant to which
Incremental Revolving Loan Commitments are being provided shall specifically
designate that such Incremental Revolving Loan Commitments are to be added to
the Total Revolving Loan Commitment;

 

15

 

(vi)          each
Lender agreeing to provide an Incremental Term Loan Commitment pursuant to an
Incremental Commitment Agreement shall, subject to the satisfaction of the
relevant conditions set forth in this Agreement, make Incremental Term Loans
under the Tranche specified in such Incremental Commitment Agreement as
provided in Section 1.01(e) and such Loans shall thereafter be deemed to be
Incremental Term Loans under such Tranche for all purposes of this Agreement
and the other Credit Documents;

 

(vii)         the
Revolving Loan Commitment of each Lender agreeing to provide an Incremental
Revolving Loan Commitment pursuant to an Incremental Commitment Agreement shall
be increased by the amount of such Incremental Revolving Commitment specified
in the relevant Incremental Commitment Agreement effective on the effective
date set forth in the respective Incremental Commitment Agreement;

 

(viii)        if,
within 10 Business Days after the Borrower has requested the then existing
Lenders (other than Defaulting Lenders) to provide Incremental Commitments
pursuant to this Section 1.14 the Borrower has not received Incremental
Commitments in an aggregate amount equal to that amount of Incremental
Commitments which the Borrower desires to obtain pursuant to such request (as
set forth in the notice provided by the Borrower as provided in clause (b) of
this Section 1.14), then the Borrower may, with the consent of the
Administrative Agent (which consent shall not be unreasonably withheld or
delayed), request Incremental Commitments from Persons which are Eligible
Transferees approved by the Administrative Agent (such approval not to be
unreasonably withheld or delayed) in an aggregate amount equal to such
deficiency (and with the fees and interest to be paid to such Eligible
Transferees to be no greater than that to be paid (or which was offered to) to
the then existing Lenders providing (or which were requested to provide) the
requested Incremental Commitments); 

 

(ix)           all
Incremental Term Loans and Revolving Loans to be incurred pursuant to Incremental
Commitments provided in response to a particular request for same made by the
Borrower in accordance with clause (b) of this Section 1.14 shall be incurred
pursuant to Incremental Commitments provided pursuant to a single Incremental
Commitment Agreement, which may be executed in counterparts; 

 

(x)            in
no event shall the Maturity Date of the Incremental Term Loans to be provided
pursuant to any Incremental Commitment Agreement be earlier than the applicable
Maturity Date of any other Tranche of Loans (or the Revolving Loan Maturity
Date, regardless of whether any Revolving Loans are then outstanding)
outstanding at the time such Incremental Term Loans are incurred, unless both
(I) the Required Lenders and (II) those Lenders holding (as outstanding Loans
or existing Revolving Loan Commitments, as the case may be) (x) a majority of
the aggregate principal amount of outstanding Term Loans of each Tranche having
a Maturity Date after such proposed Maturity Date plus (y) if such proposed
Maturity Date is to be prior to the Revolving Loan Maturity Date, a majority of
the Total Revolving Loan Commitment, expressly agree in writing; 

 

(xi)           in
no event shall the Weighted Average Life to Maturity of the Incremental Term
Loans to be provided pursuant to any Incremental Commitment

 

16

 

Agreement be less than the Weighted Average
Life to Maturity of any other Tranche of Term Loans outstanding at the time
such Incremental Term Loans are incurred, unless both (I) the Required Lenders
and (II) those Lenders holding a majority of the aggregate principal amount of
outstanding Term Loans having a Weighted Average Life to Maturity which is
longer than the Weighted Average Life to Maturity of the Incremental Term Loans
to be made pursuant to the relevant Incremental Term Loan Commitments expressly
agree in writing;

 

(xii)          in
the case of any provision of Incremental Term Commitments, the Borrower shall
be in compliance with the Financial Covenants (calculated on a Pro  Forma
Basis and assuming that all Incremental Term Loans to be incurred pursuant to
such Incremental Term Loan Commitments (and any other then existing Incremental
Term Loan Commitments) have been incurred and the proceeds thereof applied in a
manner as certified to by an Authorized Officer of the Borrower to the
Administrative Agent) at such time; and 

 

(xiii)         all
actions taken by the Borrower pursuant to this Section 1.14 shall be taken in
consultation with the Administrative Agent.

 

(b)           At the time of any provision of Incremental Commitments of a
given Tranche pursuant to this Section 1.14:

 

(i) the Borrower, the Administrative Agent
and each Lender or other Eligible Transferee which agrees to provide an
Incremental Commitment (each an “Incremental Lender”) shall execute (which
execution may be in counterparts) and deliver to the Administrative Agent an
Incremental Commitment Agreement (it being understood that a single Incremental
Commitment Agreement shall be executed and delivered by all Incremental Lenders
providing Incremental Commitments in response to a particular request for same
made by the Borrower) substantially in the form of Exhibit C (appropriately
completed and with such modifications as may be reasonably acceptable to the
Administrative Agent), with the effectiveness of the Incremental Commitment(s)
provided therein to occur on the date set forth in such Incremental Commitment
Agreement and the payment of any fees required in connection therewith;

 

(ii) the Borrower and its Subsidiaries shall
have delivered such amendments, modifications and/or supplements to the
Security Documents as are necessary or, in the reasonable opinion of the
Administrative Agent, desirable to ensure that the additional Obligations to be
incurred pursuant to the Incremental Commitments are secured by, and entitled
to the benefits of, the Security Documents;

 

(iii) the Administrative Agent shall receive
an acknowledgment from the Credit Parties that the Incremental Term Loans
and/or Revolving Loans to be incurred pursuant to such Incremental Term Loan
Commitments (or Revolving Loan Commitments, as the case may be) are entitled to
the benefits of the Subsidiaries Guaranty and the Security Documents, together
with resolutions

 

17

 

executed by (x) the
Borrower, authorizing the incurrence of such Incremental Term Loans and/or such
Revolving Loans, as the case may be, pursuant to such Incremental Term Loan
Commitments (or Revolving Loan Commitments, as the case may be) and (y) each other
Credit Party, stating that the Incremental Term Loans and/or Revolving Loans to
be incurred pursuant to such Incremental Term Loan Commitments (or Revolving
Loan Commitments, as the case may be) are entitled to benefits of the
Subsidiaries Guaranty and the Security Documents (it being understood that such
resolutions may consist of resolutions delivered on or before the Initial
Borrowing Date pursuant to Section 5.04 so long as such resolutions otherwise
comply with the requirements of this clause (iii));

 

(iv) the Administrative Agent shall have
received evidence satisfactory to it that the additional Obligations to be
incurred pursuant to the Incremental Term Loan Commitments (or Revolving Loan
Commitments, as the case may be) are (x) permitted by the terms of any
outstanding Permitted Subordinated Debt (and related Permitted Subordinated
Debt Documents) and (y) constitute “Senior Indebtedness” and “Designated Senior
Indebtedness” (or any similar term) under any such Permitted Subordinated Debt
(and related Permitted Subordinated Debt Documents); and

 

(v) the Borrower shall deliver to the
Administrative Agent an opinion or opinions, in form and substance reasonably
satisfactory to the Administrative Agent, from counsel to the Borrower
reasonably satisfactory to the Administrative Agent and dated the date the
respective Incremental Commitments are being provided pursuant to this Section
1.14, covering such of the matters set forth in the opinions of counsel
delivered to the Administrative Agent on the Initial Borrowing Date pursuant to
Section 5.03 as may be reasonably requested by the Administrative Agent, and
such other matters as the Administrative Agent may reasonably request
(including, without limitation, a no conflicts opinion with respect to any other
material Indebtedness of Borrower and its Subsidiaries and the matters
described in immediately preceding clause (iv)).

 

The Administrative Agent shall promptly
notify each Lender as to the effectiveness of each Incremental Commitment
Agreement, and shall deliver to each Lender a copy of same, and (i) at such
time Schedule 1.01 shall be deemed modified to reflect the Incremental Term
Loan Commitments (including the Tranche or Tranches thereof) of such
Incremental Lenders and/or the Revolving Loan Commitments of such Incremental
Lender, as the case may be, and (ii) to the extent requested by such
Incremental Lenders, the appropriate Notes will be issued, at the Borrower’s
expense, to such Incremental Lenders, to be consistent with the requirements of
Section 1.05 (with appropriate modifications, to the extent needed) to reflect
the Incremental Term Loans made by such Incremental Lenders or such Incremental
Lender, as the case may be and/or the increased Revolving Loan Commitment of
such Incremental Lenders, or Incremental Lender, as the case may be.

 

(c)           Notwithstanding anything to the contrary contained above,
the Incremental Term Loan Commitments provided by an Incremental Lender or
Incremental Lenders, as the case may be, pursuant to each Incremental Commitment
Agreement shall

 

18

 

constitute a new Tranche, which shall be
separate and distinct from the existing Tranches pursuant to this Agreement
(with a designation reasonably satisfactory to the Administrative Agent, which
designation may be made in letters (i.e., A, B, C, etc.), numbers (1, 2,
3, etc.) or a combination thereof (i.e., A-1, A-2, B-1, B-2, etc.), provided
that the parties to a given Incremental Commitment Agreement may specify
therein that the respective Incremental Term Loans made pursuant thereto shall
constitute part of, and be added to, an existing Tranche of Term Loans, so long
as the following requirements are satisfied:

 

(i)            the
Incremental Term Loans to be made pursuant to such Incremental Commitment
Agreement shall have the same Maturity Date and the same Weighted Average Life
to Maturity as the Tranche of Term Loans to which the new Incremental Term
Loans are being added, and shall bear interest at the same rates (i.e.,
have the same Applicable Margins) applicable to such Tranche; 

 

(ii)           the
new Incremental Term Loans shall have the same Scheduled Incremental Term Loan
Repayment Dates as then remain with respect to the Tranche to which such new
Incremental Term Loans are being added (with the amount of each Scheduled
Incremental Term Loan Repayment applicable to such new Incremental Term Loans
to be the same (on a proportionate basis) as is theretofore applicable to the
Tranche to which such new Incremental Term Loans are being added, thereby
increasing the amount of each then remaining Scheduled Incremental Term Loan
Repayment of the respective Tranche proportionately; and

 

(iii)          on
the date of the making of such new Incremental Term Loans, and notwithstanding
anything to the contrary set forth in Section 1.09, the aggregate principal
amount of such new Incremental Term Loans shall be added to (and form part of)
each Borrowing of outstanding Term Loans of the respective Tranche on a pro
rata basis (based on the relative sizes of the various outstanding
Borrowings), so that each Lender will participate proportionately in each then
outstanding Borrowing of Loans of the respective Tranche, and so that the
existing Lenders with respect to such Tranche continue to have the same
participation (by amount) in each Borrowing as they had before the making of
the new Incremental Term Loans of such Tranche. 

 

To the extent the provisions of preceding clause (iii) require that
Lenders making new Incremental Term Loans add the aggregate principal amount of
such new Incremental Term Loans to then outstanding Borrowings of Eurodollar
Loans, it is acknowledged that the effect thereof may result in such new
Incremental Term Loans having short Interest Periods (i.e., an Interest
Period that began during an Interest Period then applicable to outstanding
Eurodollar Loans and which will end on the last day of such Interest
Period).  In connection therewith, the
Borrower may agree, in the respective Incremental Commitment Agreement, to
compensate the Lenders making the new Incremental Term Loans of the respective
Tranche for funding Eurodollar Loans during an existing Interest Period on such
basis as may be agreed by the Borrower and the respective Lender or Lenders.

 

(d)           At the time of any provision of Incremental Revolving Loan
Commitments pursuant to this Section 1.14, the Borrower shall, in coordination
with the Administrative Agent, repay outstanding Revolving Loans of certain of
the Lenders with

 

19

 

outstanding
Revolving Loans, and incur additional Revolving Loans from certain other
Lenders with outstanding Revolving Loans or Revolving Loan Commitments
(including the Incremental Lenders with outstanding Revolving Loans or
Revolving Loan Commitments), in each case to the extent necessary so that all
of the Lenders with Revolving Loan Commitments participate in each outstanding
Borrowing of Revolving Loans pro  rata on the basis of their
respective Revolving Loan Commitments (after giving effect to any increase in
the Total Revolving Loan Commitment pursuant to this Section 1.14) and with the
Borrower being obligated to pay to the respective Lenders any costs of the type
referred to in Section 1.11 in connection with any such repayment and/or
Borrowing pursuant to this Section 1.14(d).

 

SECTION 2.  Letters of Credit.

 

2.01  Letters of Credit.  (a) 
Subject to and upon the terms and conditions set forth herein, the
Borrower may request that an Issuing Lender issue, at any time and from time to
time on and after the Initial Borrowing Date and prior to the 30th day prior to
the Revolving Loan Maturity Date, for the account of the Borrower and for the
benefit of (x) any holder (or any trustee, agent or other similar
representative for any such holders) of L/C Supportable Obligations, an
irrevocable standby letter of credit, in a form customarily used by such
Issuing Lender or in such other form as is reasonably acceptable to such
Issuing Lender, and (y) sellers of goods to the Borrower or any of its
Subsidiaries, an irrevocable trade letter of credit, in a form customarily used
by such Issuing Lender or in such other form as has been approved by such
Issuing Lender (each such letter of credit, a “Letter of Credit” and,
collectively, the “Letters of Credit”). 
All Letters of Credit shall be denominated in Dollars and shall be
issued on a sight basis only.  It is
acknowledged and agreed that each of the letters of credit which were issued
(or deemed issued) under the Existing Credit Agreement prior to the Initial
Borrowing Date which remain outstanding on the Initial Borrowing Date and are
set forth on Schedule 2.01 (each such letter of credit, an “Existing Letter of
Credit” and, collectively, the “Existing Letters of Credit”) shall, from and
after the Initial Borrowing Date, constitute a Letter of Credit for all
purposes of this Agreement and shall, for purposes of Sections 2.04 and 3.01,
be deemed issued on the Initial Borrowing Date. 
The Stated Amount of each Existing Letter of Credit and the expiry date
therefor is set forth on Schedule 2.01.

 

(b)           Subject to
and upon the terms and conditions set forth herein, the respective Issuing
Lender agrees that it will, at any time and from time to time on and after the
Initial Borrowing Date and prior to the 30th day prior to the Revolving Loan
Maturity Date, following its receipt of the respective Letter of Credit
Request, issue for account of the Borrower, one or more Letters of Credit as
are permitted to remain outstanding hereunder without giving rise to a Default
or an Event of Default, provided that no Issuing Lender shall be under
any obligation to issue any Letter of Credit of the types described above if at
the time of such issuance:  

 

(i)            any
order, judgment or decree of any governmental authority or arbitrator shall
purport by its terms to enjoin or restrain such Issuing Lender from issuing
such Letter of Credit or any requirement of law applicable to such Issuing
Lender or any request or directive (whether or not having the force of law)
from any governmental authority with jurisdiction over such Issuing Lender
shall prohibit, or request that such Issuing Lender refrain from, the issuance
of letters of credit generally or such Letter of

 

20

 

Credit in particular or
shall impose upon such Issuing Lender with respect to such Letter of Credit any
restriction or reserve or capital requirement (for which such Issuing Lender is
not otherwise compensated hereunder) not in effect with respect to such Issuing
Lender on the date hereof, or any unreimbursed loss, cost or expense which was
not applicable or in effect with respect to such Issuing Lender as of the date
hereof and which such Issuing Lender reasonably and in good faith deems
material to it; or

 

(ii)           such
Issuing Lender shall have received from the Borrower, any other Credit Party or
the Required Lenders prior to the issuance of such Letter of Credit notice of
the type described in the second sentence of Section 2.03(b).

 

2.02  Maximum Letter of Credit Outstandings;
Final Maturities.  Notwithstanding
anything to the contrary contained in this Agreement, (i) no Letter of Credit
shall be issued the Stated Amount of which, when added to the Letter of Credit
Outstandings (exclusive of Unpaid Drawings which are repaid on the date of, and
prior to the issuance of, the respective Letter of Credit) at such time would
exceed either (x) $40,000,000 or (y) when added to the sum of (I) the aggregate
principal amount of all Revolving Loans then outstanding and (II) the aggregate
principal amount of all Swingline Loans then outstanding, an amount equal to
the Total Revolving Loan Commitment at such time, and (ii) each Letter of
Credit shall by its terms terminate (x) in the case of standby Letters of
Credit, on or before the earlier of (A) the date which occurs 12 months after
the date of the issuance thereof (although any such standby Letter of Credit
may be extendible for successive periods of up to 12 months, but, in each case,
not beyond the fifth Business Day prior to the Revolving Loan Maturity Date, on
terms acceptable to the respective Issuing Lender) and (B) five Business Days
prior to the Revolving Loan Maturity Date, and (y) in the case of trade Letters
of Credit, on or before the earlier of (A) the date which occurs 180 days after
the date of issuance thereof and (B) 30 days prior to the Revolving Loan
Maturity Date.  

 

2.03  Letter of Credit Requests; Minimum Stated
Amount.  (a)  Whenever the Borrower desires that a Letter
of Credit be issued for its account, the Borrower shall give the Administrative
Agent and the respective Issuing Lender at least five Business Days’ (or such
shorter period as is acceptable to the respective Issuing Lender) written
notice thereof (including by way of facsimile). 
Each notice shall be in the form of Exhibit D, appropriately completed
(each a “Letter of Credit Request”). 

 

(b)           The making
of each Letter of Credit Request shall be deemed to be a representation and
warranty by the Borrower to the Lenders that such Letter of Credit may be
issued in accordance with, and will not violate the requirements of, Section
2.02.  Unless the respective Issuing
Lender has received notice from the Borrower, any other Credit Party, the
Administrative Agent or the Required Lenders before it issues a Letter of
Credit that one or more of the conditions specified in Section 5 or 7 are not
then satisfied, or that the issuance of such Letter of Credit would violate
Section 2.02, then such Issuing Lender shall, subject to the terms and
conditions of this Agreement, issue the requested Letter of Credit for the
account of the Borrower in accordance with such Issuing Lender’s usual and
customary practices.  Upon the issuance
of or modification or amendment to any standby Letter of Credit, the respective
Issuing Lender shall promptly notify the Borrower and the Administrative Agent,
in writing of such issuance, modification or amendment and such notice shall be
accompanied by a copy of such

 

21

 

issuance, modification or amendment, as the case may
be.  Promptly after receipt of such
notice the Administrative Agent shall notify the Participants, in writing, of
such issuance, modification or amendment. 
With respect to trade Letters of Credit, the respective Issuing Lender
shall, on the first Business Day of each week, deliver to the Administrative
Agent, a detailed written report of the daily aggregate outstandings of all
trade Letters of Credit issued by it for the previous week.  The Administrative Agent shall, promptly
after receipt of such report, provide each Participant with a copy of
same.  Notwithstanding anything to the
contrary contained in this Agreement, in the event that a Lender Default exists
with respect to an RL Lender, no Issuing Lender shall be required to issue any
Letter of Credit unless such Issuing Lender has entered into arrangements
satisfactory to it and the Borrower to eliminate such Issuing Lender’s risk
with respect to the participation in Letters of Credit by the Defaulting Lender
or Defaulting Lenders, including by cash collateralizing such Defaulting Lender’s
or Defaulting Lenders’ RL Percentage of the Letter of Credit Outstandings.

 

(c)           The
initial Stated Amount of each Letter of Credit shall not be less than $50,000
or such lesser amount as is acceptable to the respective Issuing Lender.

 

2.04  Letter of Credit Participations.  (a) 
Immediately upon the issuance by the respective Issuing Lender of any
Letter of Credit, such Issuing Lender shall be deemed to have sold and
transferred to each RL Lender (other than such Issuing Lender in its capacity
(if any) as an RL Lender) and each such RL Lender (in its capacity under this
Section 2.04, a “Participant”) shall be deemed irrevocably and unconditionally
to have purchased and received from such Issuing Lender, without recourse or
warranty, an undivided interest and participation, to the extent of such
Participant’s RL Percentage, in such Letter of Credit, each drawing or payment
made thereunder and the obligations of the Borrower under this Agreement with
respect thereto, and any security therefor or guaranty pertaining thereto.  Upon any change in the Revolving Loan
Commitments or RL Percentages of the Lenders pursuant to Section 1.13, 1.14 or
14.04(b), it is hereby agreed that, with respect to all outstanding Letters of
Credit and Unpaid Drawings relating thereto, there shall be an automatic
adjustment to the participations pursuant to this Section 2.04 to reflect the
new RL Percentages of the relevant Lenders.

 

(b)           In
determining whether to pay under any Letter of Credit, the respective Issuing
Lender shall not have any obligation relative to the other Lenders other than
to confirm that any documents required to be delivered under such Letter of
Credit appear to have been delivered and that they appear to substantially comply
on their face with the requirements of such Letter of Credit.  Any action taken or omitted to be taken by an
Issuing Lender under or in connection with any Letter of Credit issued by it
shall not create for such Issuing Lender any resulting liability to the
Borrower, any other Credit Party, any Lender or any other Person unless such
action is taken or omitted to be taken with gross negligence or willful
misconduct (as determined by a court of competent jurisdiction in a final and
non-appealable decision).

 

(c)           In the
event that an Issuing Lender makes any payment under any Letter of Credit
issued by it and the Borrower shall not have reimbursed such amount in full to
such Issuing Lender pursuant to Section 2.05(a), such Issuing Lender shall
promptly notify the Administrative Agent, which shall promptly notify each
Participant of such failure, and each Participant shall promptly and
unconditionally pay to such Issuing Lender the amount of such Participant’s RL
Percentage of such unreimbursed payment in Dollars and in same day funds.  If

 

22

 

the Administrative Agent so notifies, prior to 12:00
Noon (New York time) on any Business Day, any Participant required to fund a
payment under a Letter of Credit, such Participant shall make available to the
respective Issuing Lender in Dollars such Participant’s RL Percentage of the
amount of such payment on such Business Day in same day funds.  If and to the extent such Participant shall
not have so made its RL Percentage of the amount of such payment available to
the respective Issuing Lender, such Participant agrees to pay to such Issuing
Lender, forthwith on demand such amount, together with interest thereon, for
each day from such date until the date such amount is paid to such Issuing
Lender at the Federal Funds Rate for the first three days and at the interest
rate applicable to Revolving Loans that are maintained as Base Rate Loans for
each day thereafter.  The failure of any
Participant to make available to the respective Issuing Lender its RL
Percentage of any payment under any Letter of Credit issued by such Issuing
Lender shall not relieve any other Participant of its obligation hereunder to
make available to the respective Issuing Lender its RL Percentage of any payment
under any Letter of Credit on the date required, as specified above, but no
Participant shall be responsible for the failure of any other Participant to
make available to the respective Issuing Lender such other Participant’s RL
Percentage of any such payment.

 

(d)           Whenever
an Issuing Lender receives a payment of a reimbursement obligation as to which
it has received any payments from the Participants pursuant to clause (c)
above, such Issuing Lender shall pay to each such Participant which has paid its
RL Percentage thereof, in Dollars and in same day funds, an amount equal to
such Participant’s share (based upon the proportionate aggregate amount
originally funded by such Participant to the aggregate amount funded by all
Participants) of the principal amount of such reimbursement obligation and
interest thereon accruing after the purchase of the respective participations.

 

(e)           Upon the
request of any Participant, the respective Issuing Lender shall furnish to such
Participant copies of any standby Letter of Credit issued by it and such other
documentation as may reasonably be requested by such Participant.

 

(f)            The
obligations of the Participants to make payments to the respective Issuing
Lender with respect to Letters of Credit shall be irrevocable and not subject
to any qualification or exception whatsoever and shall be made in accordance
with the terms and conditions of this Agreement under all circumstances,
including, without limitation, any of the following circumstances:

 

(i)            any lack
of validity or enforceability of this Agreement or any of the other Credit
Documents;

 

(ii)           the
existence of any claim, setoff, defense or other right which the Borrower or
any of its Subsidiaries may have at any time against a beneficiary named in a
Letter of Credit, any transferee of any Letter of Credit (or any Person for
whom any such transferee may be acting), any Agent, any Issuing Lender, any
Participant, or any other Person, whether in connection with this Agreement,
any Letter of Credit, the transactions contemplated herein or any unrelated
transactions (including any underlying transaction between the Borrower or any
Subsidiary of the Borrower and the beneficiary named in any such Letter of
Credit);

 

23

 

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

 

(iv)          the
surrender or impairment of any security for the performance or observance of
any of the terms of any of the Credit Documents; or

 

(v)           the
occurrence of any Default or Event of Default.

 

2.05  Agreement to Repay Letter of Credit
Drawings.  (a)  The Borrower agrees to reimburse the
respective Issuing Lender, by making payment to the Administrative Agent in
immediately available funds at the Payment Office, for any payment or
disbursement made by such Issuing Lender under any Letter of Credit issued by
it (each such amount, so paid until reimbursed, an “Unpaid Drawing”), not later
than one Business Day following receipt by the Borrower of notice of such
payment or disbursement (provided that no such notice shall be required
to be given if a Default or an Event of Default under Section 11.05 shall have
occurred and be continuing, in which case the Unpaid Drawing shall be due and
payable immediately without presentment, demand, protest or notice of any kind
(all of which are hereby waived by the Borrower)), with interest on the amount
so paid or disbursed by such Issuing Lender, to the extent not reimbursed prior
to 12:00 Noon (New York time) on the date of such payment or disbursement, from
and including the date paid or disbursed to but excluding the date such Issuing
Lender was reimbursed by the Borrower therefor at a rate per annum equal to the
Base Rate in effect from time to time plus the Applicable Margin as in effect
from time to time for Revolving Loans that are maintained as Base Rate Loans;
provided, however, to the extent such amounts are not reimbursed prior to 12:00
Noon (New York time) on the third Business Day following the receipt by the
Borrower of notice of such payment or disbursement or following the occurrence
of a Default or an Event of Default under Section 11.05, interest shall
thereafter accrue on the amounts so paid or disbursed by such Issuing Lender
(and until reimbursed by the Borrower) at a rate per annum equal to the Base
Rate in effect from time to time plus the Applicable Margin for Revolving Loans
that are maintained as Base Rate Loans as in effect from time to time plus 2%,
with such interest to be payable on demand. 
The respective Issuing Lender shall give the Borrower prompt written
notice of each Drawing under any Letter of Credit issued by it, provided
that the failure to give any such notice shall in no way affect, impair or
diminish the Borrower’s obligations hereunder.

 

(b)           The
obligations of the Borrower under this Section 2.05 to reimburse the respective
Issuing Lender with respect to drafts, demands and other presentations for
payment under Letters of Credit issued by it (each a “Drawing”) (including, in
each case, interest thereon) shall be absolute and unconditional under any and
all circumstances and irrespective of any setoff, counterclaim or defense to
payment which the Borrower or any Subsidiary of the Borrower may have or have
had against any Lender (including in its capacity as an Issuing Lender or as a
Participant), including, without limitation, any defense based upon the failure
of any drawing under a Letter of Credit to conform to the terms of the Letter
of Credit or any nonapplication or misapplication by the beneficiary of the
proceeds of such Drawing; provided, however, that the Borrower
shall not be obligated to reimburse any Issuing Lender for any wrongful payment
made by such Issuing Lender under a Letter of Credit issued by it as a result
of acts or omissions constituting willful misconduct or gross negligence on the
part of such

 

24

 

Issuing Lender (as determined by a court of competent
jurisdiction in a final and non-appealable decision).

 

2.06  Increased Costs.  If at any time after the Effective Date, the
introduction of or any change in any applicable law, rule, regulation, order,
guideline or request or in the interpretation or administration thereof by the
NAIC or any governmental authority charged with the interpretation or
administration thereof, or compliance by any Issuing Lender or any Participant
with any request or directive by the NAIC or by any such governmental authority
(whether or not having the force of law), shall either (i) impose, modify or
make applicable any reserve, deposit, capital adequacy or similar requirement
against letters of credit issued by such Issuing Lender or participated in by
any Participant, or (ii) impose on such Issuing Lender or any Participant any
other conditions relating, directly or indirectly, to this Agreement or any
Letter of Credit; and the result of any of the foregoing is to increase the
cost to such Issuing Lender or any Participant of issuing, maintaining or
participating in any Letter of Credit, or reduce the amount of any sum received
or receivable by such Issuing Lender or any Participant or reduce the rate of
return on its capital with respect to Letters of Credit (except for changes in
the rate of tax on, or determined by reference to, the net income or profits of
such Issuing Lender or such Participant pursuant to the laws of the
jurisdiction in which it is organized or in which its principal office or
applicable lending office is located or any subdivision thereof or therein),
then, within five days after the delivery of the certificate referred to below
to the Borrower by such Issuing Lender or any Participant (or on such later
date or dates as such Issuing Lender may indicate in such certificate) (a copy
of which certificate shall be sent by such Issuing Lender or such Participant
to the Administrative Agent), the Borrower agrees to pay to such Issuing Lender
or such Participant such additional amount or amounts as will compensate such
Issuing Lender or such Participant for such increased cost or reduction in the
amount receivable or reduction on the rate of return on its capital.  The respective Issuing Lender or any
Participant, upon determining that any additional amounts will be payable
pursuant to this Section 2.06, will give prompt written notice thereof to the
Borrower, which notice shall include a certificate submitted to the Borrower by
such Issuing Lender or such Participant (a copy of which certificate shall be
sent by such Issuing Lender or such Participant to the Administrative Agent),
setting forth in reasonable detail the basis for the calculation of such
additional amount or amounts necessary to compensate such Issuing Lender or
such Participant.  The certificate
required to be delivered pursuant to this Section 2.06 shall, absent manifest
error, be final and conclusive and binding on the Borrower.

 

SECTION 3.  Commitment Commission; Fees; Reductions of
Commitment.

 

3.01  Fees.  (a)  The Borrower agrees to pay to the
Administrative Agent for distribution to each Non-Defaulting RL Lender a
commitment commission (the “RL Commitment Commission”) for the period from and
including the Effective Date to but excluding the Revolving Loan Maturity Date
(or such earlier date on which the Total Revolving Loan Commitment has been
terminated) computed at a rate per annum equal to the Applicable Commitment
Commission Percentage on the Unutilized Revolving Loan Commitment of such Non-Defaulting
RL Lender as in effect from time to time. 
Accrued RL Commitment Commission shall be due and payable quarterly in
arrears on each Quarterly Payment Date and on the date upon which the Total
Revolving Loan Commitment is terminated.

 

25

 

(b)           The Borrower agrees to pay to the Administrative Agent for
distribution to each Non-Defaulting Lender with an Initial Term Loan Commitment
a commitment commission (the “Initial TL Commitment Commission”) for the period
from the Initial Borrowing Date to but not including the Initial TL Commitment
Termination Date (or such earlier date on which the Total Initial Term Loan
Commitment has been terminated), computed at a rate per annum for each day
equal to 1⁄2 of 1% on the daily average Initial Term Loan Commitment of such
Non-Defaulting Lender.  Accrued Initial
TL Commitment Commission shall be due and payable in arrears on the Initial TL
Commitment Termination Date (or such earlier date upon which the Total Initial
Term Loan Commitment is terminated).

 

(c)           The Borrower agrees to pay to the Administrative Agent for
distribution to each Non-Defaulting Lender with an Incremental Term Loan
Commitment such facility fees, commitment commission and other amounts, if any,
as are specified in the Incremental Commitment Agreement pursuant to which such
Incremental Term Loan Commitment has been provided, with such facility fees,
commitment commission and other amounts, if any, to be payable at the times set
forth in such Incremental Commitment Agreement.

 

(d)           The Borrower agrees to pay to the Administrative Agent for
distribution to each RL Lender (based on each such RL Lender’s respective RL
Percentage) a fee in respect of each Letter of Credit (the “Letter of Credit
Fee”) for the period from and including the date of issuance of such Letter of
Credit to and including the date of termination or expiration of such Letter of
Credit, computed at a rate per annum equal to the Applicable Margin then in
effect with respect to Revolving Loans that are maintained as Eurodollar Loans
on the daily Stated Amount of each such Letter of Credit.  Accrued Letter of Credit Fees shall be due
and payable quarterly in arrears on each Quarterly Payment Date and on the
first day on or after the termination of the Total Revolving Loan Commitment
upon which no Letters of Credit remain outstanding.

 

(e)           The Borrower agrees to pay to the respective Issuing Lender,
for its own account, a facing fee in respect of each Letter of Credit issued by
it (the “Facing Fee”) for the period from and including the date of issuance of
such Letter of Credit to and including the date of termination or expiration of
such Letter of Credit, computed at a rate per annum equal to 0.125% on the
daily Stated Amount of such Letter of Credit, provided that in any event
the minimum amount of Facing Fees payable in any twelve-month period for each
Letter of Credit shall be not less than $500; it being agreed that, on the day
of issuance of any Letter of Credit and on each anniversary thereof prior to
the termination or expiration of such Letter of Credit, if $500 will exceed the
amount of Facing Fees that will accrue with respect to such Letter of Credit
for the immediately succeeding twelve-month period, the full $500 shall be
payable on the date of issuance of such Letter of Credit and on each such
anniversary thereof.  Except as otherwise
provided in the proviso to the immediately preceding sentence, accrued Facing
Fees shall be due and payable quarterly in arrears on each Quarterly Payment
Date and upon the first day on or after the termination of the Total Revolving
Loan Commitment upon which no Letters of Credit remain outstanding.

 

(f)            The Borrower agrees to pay to
the respective Issuing Lender, for its own account, upon each payment under,
issuance of, or amendment to, any Letter of Credit issued by it, such amount as
shall at the time of such event be the administrative charge and the reasonable

 

26

 

expenses which such Issuing Lender is
generally imposing in connection with such occurrence with respect to letters
of credit.

 

(g)           The Borrower agrees to pay to each Agent, for its account,
such fees as may be agreed to in writing from time to time by the Borrower and
the Administrative Agent.

 

3.02  Voluntary
Termination of Commitments. 
(a)  Upon at least three Business
Days’ prior written notice to the Administrative Agent at the Notice Office
(which notice the Administrative Agent shall promptly transmit to each of the
Lenders), the Borrower shall have the right, at any time or from time to time,
without premium or penalty to terminate the Total Revolving Loan Commitment in
whole, or reduce it in part, pursuant to this Section 3.02(a), in an
integral multiple of $1,000,000 in the case of partial reductions to the Total
Revolving Loan Commitment, provided that (x) if, as a result of any such
termination or reduction to the Total Revolving Loan Commitment, any amounts
are owing pursuant to Section 4.02(a), such amounts shall be repaid in
accordance with the requirements of Section 4.02(a) concurrently with the
effectiveness of such termination or reduction to the Total Revolving Loan
Commitment and (y) each such reduction shall apply proportionately to
permanently reduce the Revolving Loan Commitment of each RL Lender.

 

(b)           Unless otherwise provided in the respective Incremental
Commitment Agreement, upon at least three Business Days’ prior written notice
to the Administrative Agent at the Notice Office (which notice the
Administrative Agent shall promptly transmit to each of the Lenders), the
Borrower shall have the right, at any time or from time to time, without
premium or penalty, to terminate the aggregate Incremental Term Loan
Commitments provided pursuant to any Incremental Commitment Agreement in whole,
or reduce them in part, pursuant to this Section 3.02(b), in an integral
multiple of $1,000,000 (or such other multiple as may be provided in the
respective Incremental Commitment Agreement) in the case of partial reductions
to the aggregate amount of Incremental Term Loan Commitments provided pursuant
to the relevant Incremental Commitment Agreement, provided that each
such reduction shall apply proportionately to permanently reduce the
Incremental Term Loan Commitment of various Lenders provided pursuant to the
respective Incremental Commitment Agreement or Agreements under which such
Tranche of Incremental Term Loan Commitments have been provided.

 

(c)           In
the event of a refusal by a Lender to consent to certain proposed changes,
waivers, discharges or terminations with respect to this Agreement which have
been approved by the Required Lenders as (and to the extent) provided in Section 14.12(b),
the Borrower may, subject to its compliance with the requirements of Section 14.12(b),
upon five Business Days’ prior written notice to the Administrative Agent at
the Notice Office (which notice the Administrative Agent shall promptly
transmit to each of the Lenders) terminate the entire Revolving Loan Commitment
of such Lender, so long as (x) all Loans, together with accrued and unpaid
interest, Fees and all other amounts, owing to such Lender (including all
amounts, if any, owing pursuant to Section 1.11 but excluding amounts
owing in respect to Term Loans maintained by such Lender, if such Term Loans
are not being repaid pursuant to Section 14.12(b)) are repaid concurrently
with the effectiveness of such termination pursuant to Section 4.01(b) (at
which time Schedule 1.01 shall be deemed modified to reflect such changed
amounts) and (y) after giving effect to the repayments pursuant to preceding
clause (x), any additional payments owing at such time pursuant to Section 4.02(a)
shall be made concurrently with the

 

27

 

effectiveness of
such termination, and at such time, such Lender shall no longer constitute a “Lender”
for purposes of this Agreement, except with respect to indemnifications under
this Agreement (including, without limitation, Sections 1.10, 1.11, 2.06, 4.04,
13.06 and 14.01), which shall survive as to such repaid Lender.

 

(d)           The
Borrower shall not have the right to voluntarily terminate or partially reduce
the total Initial Term Loan Commitment (or the Initial Term Loan Commitment of
any Lender).

 

3.03  Mandatory
Reduction of Commitments. 
(a)  The Total Commitment (and the
Commitment of each Lender) shall terminate in its entirety on November 30,
2004 unless the Initial Borrowing Date has occurred on or prior to such date.

 

(b)           In
addition to any other mandatory commitment reductions pursuant to this Section 3.03,
the Total Initial Term Loan Commitment (and the Initial Term Loan Commitment of
each Lender) shall terminate in its entirety on the Redemption Date (after
giving effect to any incurrence of Initial Term Loans on such date).

 

(c)           In
addition to any other mandatory commitment reductions pursuant to this Section 3.03,
the Total Revolving Loan Commitment shall terminate in its entirety on the
Revolving Loan Maturity Date.

 

(d)           In
addition to any other mandatory commitment reductions pursuant to this Section 3.03,
on each date upon which a mandatory repayment of Term Loans pursuant to Section 4.02(b),
(c), (d), (f) or (g) is required (and exceeds in amount the sum of the
aggregate principal amount of Term Loans then outstanding plus any then
existing Incremental Term Loan Commitments) or would be required if Term Loans
were then outstanding or any Incremental Term Loans then existed, the Total
Revolving Loan Commitment shall be permanently reduced by the amount, if any,
by which the amount required to be applied pursuant to said Sections
(determined as if an unlimited amount of Term Loans were actually outstanding)
exceeds the sum of the aggregate principal amount of Term Loans then
outstanding plus any then existing Incremental Term Loan Commitments; provided
that notwithstanding the foregoing, in no event shall the Total Revolving Loan
Commitment be reduced by operation of this Section 3.03(d) to an aggregate
amount less than $90,000,000.

 

(e)           In
addition to any other mandatory commitment reductions pursuant to this Section 3.03,
(i) the Incremental Term Loan Commitment of each Lender provided pursuant to a
particular Incremental Commitment Agreement shall be permanently reduced on
each Incremental Term Loan Borrowing Date on which Incremental Term Loans are
incurred pursuant to such Incremental Commitment Agreement in an amount equal
to the aggregate principal amount of Incremental Term Loans made by such Lender
pursuant to such Incremental Commitment Agreement on such date, (ii) the
Incremental Term Loan Commitment of each Lender provided pursuant to a
particular Incremental Commitment Agreement shall terminate at 5:00 P.M.
(New York City time) on the earlier of (x) the date specified in such
Incremental Commitment Agreement and (y) the Revolving Loan Maturity Date (whether
or not any Incremental Term Loans are incurred on either such date) and (iii)
unless the Required Lenders

 

28

 

otherwise agree in
writing in their sole discretion, any then existing Incremental Term Loan
Commitments shall terminate in their entirety on the date on which a Change in
Control occurs.

 

(f)            Each
reduction to, or termination of, the Total Initial Term Loan Commitment shall
be applied to proportionately reduce or terminate, as the case may be, the
Initial Term Loan Commitment of each Lender with such a Commitment.  Each reduction to the Incremental Term Loan
Commitments provided pursuant to any Incremental Commitment Agreement shall,
except as otherwise expressly provided in the respective Incremental Commitment
Agreement, be applied proportionately to reduce the Incremental Term Loan
Commitment of each Lender provided pursuant to the respective Incremental
Commitment Agreement.  Each reduction to,
or termination of, the Total Revolving Loan Commitment shall be applied to
proportionately reduce or terminate, as the case may be, the Revolving Loan
Commitment of each Lender with such a Commitment.

 

SECTION 4.  Prepayments; Payments; Taxes.

 

4.01  Voluntary
Prepayments.  (a)  The Borrower shall have the right to prepay
the Loans, without premium or penalty, in whole or in part at any time and from
time to time on the following terms and conditions:

 

(i) the Borrower shall give the Administrative Agent
at the Notice Office (x) prior written notice (or telephonic notice promptly
confirmed in writing) of its intent to prepay Base Rate Loans by no later than
12:00 Noon (New York time) on the date of such prepayment and (y) prior written
notice (or telephonic notice promptly confirmed in writing) of its intent to
prepay Eurodollar Loans by no later than 1:30 P.M. (New York time) at least
three Business Days’ prior to the date of such prepayment, which notice (in
each case) shall specify whether Initial Term Loans, one or more Tranches of
Incremental Term Loans, Revolving Loans or Swingline Loans shall be prepaid,
the amount of such prepayment and the Types of Loans to be prepaid and, in the
case of Eurodollar Loans, the specific Borrowing or Borrowings pursuant to
which made, and which notice the Administrative Agent shall, except in the case
of a prepayment of Swingline Loans, promptly transmit to each of the Lenders;

 

(ii) (x) each partial prepayment of Term Loans
pursuant to this Section 4.01(a) shall be in an aggregate principal amount
of at least $1,000,000, (y) each partial prepayment of Revolving Loans pursuant
to this Section 4.01(a) shall be in an aggregate principal amount of at
least $250,000 and (z) each partial prepayment of Swingline Loans pursuant to
this Section 4.01(a) shall be in an aggregate principal amount of at least
$100,000; provided that if any partial prepayment of Eurodollar Loans
made pursuant to any Borrowing shall reduce the outstanding principal amount of
Eurodollar Loans made pursuant to such Borrowing to an amount less than the Minimum
Borrowing Amount applicable thereto, then such Borrowing may not be continued
as a Borrowing of Eurodollar Loans beyond the last day of the Interest Period
then applicable thereto (and same shall automatically be converted into a
Borrowing of Base Rate Loans on the last day of such Interest Period) and any
election of an Interest Period with respect thereto given by the Borrower shall
have no force or effect;

 

29

 

(iii) each prepayment pursuant to this Section 4.01(a)
in respect of any Loans made pursuant to a Borrowing shall be applied pro  rata
among such Loans, provided that at the Borrower’s election in connection
with any prepayment of Revolving Loans pursuant to this Section 4.01(a),
such prepayment shall not, so long as no Default and no Event of Default then
exists, be applied to any Revolving Loan of a Defaulting Lender;

 

(iv) at the time of any prepayment of Eurodollar Loans
pursuant to this Section 4.01(a) on any date other than the last day of the
Interest Period applicable thereto, the Borrower shall pay the amounts required
pursuant to Section 1.11;

 

(v)  each
voluntary prepayment of Term Loans pursuant to this Section 4.01(a) shall
be applied pro  rata to each Tranche of Term Loans, with each such
Tranche of Term Loans to be allocated its Relevant Term Loan Percentage of such
repayment; and

 

(vi) the amount of each voluntary prepayment of
Incremental Term Loans made pursuant to this Section 4.01(a) and applied
to a particular Tranche of Term Loans as provided in preceding clause (v) shall
be applied as otherwise provided in the Incremental Commitment Agreement
pursuant to which such Incremental Term Loans are made, or in the case of any
Tranche of Incremental Term Loans extended pursuant to more than one
Incremental Commitment Agreement, as may otherwise be provided in the first
Incremental Commitment Agreement executed and delivered with respect to such
Tranche.

 

(b)           In the event of a refusal by a Lender to consent to certain
proposed changes, waivers, discharges or terminations with respect to this
Agreement which have been approved by the Required Lenders as (and to the
extent) provided in Section 14.12(b), the Borrower may, upon five Business
Days’ prior written notice to the Administrative Agent at the Notice Office
(which notice the Administrative Agent shall promptly transmit to each of the
Lenders) repay all Loans of such Lender (including all amounts, if any, owing
pursuant to Section 1.11), together with accrued and unpaid interest, Fees
and all other amounts then owing to such Lender (or owing to such Lender with
respect to the Tranche which gave rise to the need to obtain such Lender’s
individual consent) in accordance with, and subject to the requirements of,
said Section 14.12(b), so long as (I) in the case of the repayment of
Revolving Loans of any Lender pursuant to this clause (b), the Revolving Loan
Commitment of such Lender is terminated concurrently with such repayment
pursuant to this Section 4.01(b), at which time Schedule 1.01 shall
be deemed modified to reflect the changed Revolving Loan Commitments, (II) the
consents, if any, required under Section 14.12(b) in connection with the
repayment pursuant to this clause (b) have been obtained and (III) after giving
effect to all repayments made as described above in this Section 4.01(b),
any additional amounts owing pursuant to Section 4.02(a) at such time
shall have been paid.

 

4.02  Mandatory
Repayments.  (a)  On any day on which the sum of (I) the
aggregate outstanding principal amount of all Revolving Loans (after giving
effect to all other repayments thereof on such date), (II) the aggregate
outstanding principal amount of all Swingline Loans (after giving effect to all
other repayments thereof on such date) and (III) the aggregate amount of all
Letter of Credit Outstandings exceeds the Total Revolving Loan Commitment at
such time, the Borrower agrees to prepay on such day the principal of Swingline

 

30

 

Loans and, after all Swingline Loans have been repaid in full or if no
Swingline Loans are outstanding, Revolving Loans in an amount equal to such
excess.  If, after giving effect to the
prepayment of all outstanding Swingline Loans and Revolving Loans, the
aggregate amount of the Letter of Credit Outstandings exceeds the Total
Revolving Loan Commitment at such time, the Borrower agrees to pay to the
Administrative Agent at the Payment Office on such day an amount of cash and/or
Cash Equivalents equal to the amount of such excess (up to a maximum amount
equal to the Letter of Credit Outstandings at such time), such cash and/or Cash
Equivalents to be held as security for all obligations of the Borrower to the
Issuing Lenders and the Lenders hereunder in a cash collateral account to be established
by the Administrative Agent.

 

(b)           In addition to any other mandatory repayments or commitment
reductions pursuant to this Section 4.02, the Borrower shall be required
to repay the principal amount of Incremental Term Loans on the dates and in the
amounts set forth in the respective Incremental Commitment Agreement or
Agreements relating to such Incremental Term Loans (each such repayment as the
same may be reduced as provided in Section 4.01, a “Scheduled Incremental
Term Loan Repayment”, and each such date a “Scheduled Incremental Term Loan
Repayment Date”), provided that if any Incremental Term Loans are
incurred which will be added to (and form part of) an existing Tranche of
Incremental Term Loans, the amount of the then remaining Scheduled Incremental
Term Loan Repayments of the respective Tranche shall be proportionally
increased (with the aggregate amount of increases to the then remaining
Scheduled Incremental Term Loan Repayments to equal the aggregate principal
amount of such new Incremental Term Loans then being incurred) in accordance
with the requirements of Section 1.14(c).

 

(c)           In
addition to any other mandatory repayments pursuant to this Section 4.02,
on each date on or after the Initial Borrowing Date upon which the Borrower or
any of its Subsidiaries receives any cash proceeds from any incurrence by the
Borrower or any of its Subsidiaries of Indebtedness (other than Indebtedness
permitted to be incurred pursuant to Section 10.04 as in effect on the
Effective Date), an amount equal to 100% of the Net Debt Proceeds of the
respective incurrence of Indebtedness shall be applied on such date as a
mandatory repayment of outstanding Term Loans in accordance with the
requirements of Sections 4.02(g) and (h).

 

(d)           In
addition to any other mandatory repayments pursuant to this Section 4.02,
no later than the first Business Day following each date on or after the
Initial Borrowing Date upon which the Borrower or any of its Subsidiaries
receives any cash proceeds from any Material Asset Sale, an amount equal to
100% of the Net Sale Proceeds therefrom shall be applied on such date as a
mandatory repayment of outstanding Term Loans in accordance with the
requirements of Sections 4.02(g) and (h) (or, in the case of Material Asset
Sales consummated pursuant to Section 10.02(xiii), at the option of the
Borrower, as a mandatory repayment of outstanding Revolving Loans (with no
corresponding reduction to the Total Revolving Loan Commitment) in accordance
with the requirements of Section 4.02(h)); provided, however,
that the Net Sale Proceeds therefrom shall not be required to be so applied on
such date so long as no Default or Event of Default then exists and the
Borrower delivers a certificate (which certificate shall set forth the
estimates of the Net Sale Proceeds to be so expended) to the Administrative
Agent on or prior to such date stating that such Net Sale Proceeds shall be
used to purchase assets used or to be used in the businesses permitted pursuant
to Section 10.15 (including, without limitation (but only to the extent
permitted by Section 9.14),

 

31

 

the purchase of
the assets or 100% of the equity of a Person engaged in such businesses) within
the Relevant Reinvestment Period, and provided  further, that if
all or any portion of such Net Sale Proceeds not required to be so applied as
provided above in this Section 4.02(d) are not so reinvested within such
Relevant Reinvestment Period, such remaining portion shall be applied on the
last day of such Relevant Reinvestment Period as provided above in this Section 4.02(d)
without regard to the preceding proviso.

 

(e)           In
addition to any other mandatory repayments pursuant to this Section 4.02,
within three Business Days following each date on or after the Initial
Borrowing Date upon which the Borrower or any of its Subsidiaries receives any
cash proceeds from any Material Recovery Event, an amount equal to 100% of the
Net Insurance Proceeds from such Material Recovery Event shall be applied
within such three Business Day period as a mandatory repayment of outstanding
Term Loans in accordance with the requirements of Sections 4.02(g) and (h); provided,
however, that so long as no Default or Event of Default then exists such
Net Insurance Proceeds shall not be required to be so applied within such three
Business Day period to the extent that the Borrower has delivered a certificate
(which certificate shall set forth the estimates of the Net Insurance Proceeds
to be so expended) to the Administrative Agent within such three Business Day
period stating that such Net Insurance Proceeds shall be used to replace or
restore any properties or assets in respect of which such Net Insurance
Proceeds were paid within the Relevant Reinvestment Period, and provided
further that if all or any portion of such Net Insurance Proceeds not
required to be so applied pursuant to the preceding proviso are not so used
within the Relevant Reinvestment Period, such remaining portion shall be
applied on the last day of such Relevant Reinvestment Period as provided above
in this Section 4.02(e) without regard to the preceding proviso.

 

(f)            In addition to any other
mandatory repayments or commitment reductions pursuant to this Section 4.02,
on each Excess Cash Payment Date, an amount equal to the Applicable ECF
Percentage of Excess Cash Flow for the relevant Excess Cash Payment Period
shall be applied as a mandatory repayment of outstanding Term Loans in
accordance with the requirements of Sections 4.02(g) and (h).

 

(g)           The amount of each principal repayment of Term Loans made as
required by Sections 4.02(c), (d), (e) and (f) shall be applied pro  rata
to each Tranche of then outstanding Term Loans, with each such Tranche of Term
Loans to be allocated its Relevant Term Loan Percentage of such payment.  Each principal repayment applied to a particular Tranche of
Incremental Term Loans pursuant to the preceding sentence shall be applied to
reduce the scheduled amortization payments (if any) under such Tranche of
Incremental Term Loans as otherwise provided in the Incremental Commitment
Agreement pursuant to which such Incremental Term Loans have been made, or in
the case of any Tranche of Incremental Term Loans extended pursuant to more
than one Incremental Commitment Agreement, as may otherwise be provided in the
first Incremental Commitment Agreement executed and delivered with respect to
such Tranche.

 

(h)           With respect to each repayment of Loans required by this Section 4.02,
the Borrower may designate the Types of Loans of the respective Tranche which
are to be repaid and, in the case of Eurodollar Loans, the specific Borrowing
or Borrowings of the respective Tranche pursuant to which such Eurodollar Loans
were made, provided that:  (i)
repayments of

 

32

 

Eurodollar Loans pursuant to this Section 4.02
may only be made on the last day of an Interest Period applicable thereto
unless all Eurodollar Loans of the respective Tranche with Interest Periods
ending on such date of required repayment and all Base Rate Loans of the
respective Tranche have been paid in full; (ii) if any repayment of Eurodollar
Loans made pursuant to a single Borrowing shall reduce the outstanding
Eurodollar Loans made pursuant to such Borrowing to an amount less than the
Minimum Borrowing Amount applicable thereto, such Borrowing shall be
automatically converted at the end of the then current Interest Period into a
Borrowing of Base Rate Loans; and (iii) each repayment of any Loans made
pursuant to a Borrowing shall be applied pro
rata among such Loans.  In the absence of a designation by the
Borrower as described in the preceding sentence, the Administrative Agent
shall, subject to the above, make such designation in its sole discretion.  Notwithstanding the foregoing provisions of this
Section 4.02 (other than Sections 4.02(a) and (b), which shall not have
the benefits of this sentence), if at any time the mandatory repayment of Loans
pursuant to this Section 4.02 would result, after giving effect to the
procedures set forth above in this clause (h), in the Borrower incurring
breakage costs under Section 1.11 as a result of Eurodollar Loans being
repaid other than on the last day of an Interest Period applicable thereto (any
such Eurodollar Loans, “Affected Loans”), the Borrower may elect, by written
notice to the Administrative Agent, to have the provisions of the following
sentence be applicable so long as no Default or Event of Default then
exists.  At the time any Affected Loans
are otherwise required to be prepaid, the Borrower may elect to deposit 100%
(or such lesser percentage elected by the Borrower as not being repaid) of the
principal amounts that otherwise would have been paid in respect of the
Affected Loans with the Administrative Agent to be held as security for the obligations
of the Borrower hereunder pursuant to a cash collateral agreement to be entered
into in form and substance satisfactory to the Administrative Agent, with such
cash collateral to be released from such cash collateral account (and applied
to repay the principal amount of such Eurodollar Loans) upon each occurrence
thereafter of the last day of an Interest Period applicable to such Eurodollar
Loans (or such earlier date or dates as shall be requested by the Borrower),
with the amount to be so released and applied on the last day of each Interest
Period to be the principal amount of such Eurodollar Loans to which such
Interest Period applies (or, if less, the amount remaining in such cash
collateral account); provided, however, that at any time while an
Event of Default has occurred and is continuing, the Required Lenders may
direct the Administrative Agent (in which case the Administrative Agent shall,
and is hereby authorized by the Borrower to, follow said directions) to apply
any or all proceeds then on deposit in such collateral account to the payment
of such Affected Loans.  So long as no
Event of Default is then in existence, any amounts remaining in such collateral
account after giving effect to the application thereof as contemplated above
shall be returned to the Borrower.

 

(i)            In addition to any other
mandatory repayments pursuant to this Section 4.02, all then outstanding
Loans of any Tranche shall be repaid in full on the respective Maturity Date
for such Tranche of Loans.

 

4.03  Method and
Place of Payment.  Except as
otherwise specifically provided herein, all payments under this Agreement and
under any Note shall be made to the Administrative Agent for the account of the
Lender or Lenders entitled thereto not later than 1:00 P.M. (New York time) on
the date when due and shall be made in Dollars in immediately available funds
at the Payment Office.  Whenever any
payment to be made hereunder or under any Note shall be stated to be due on a
day which is not a Business Day, the due date thereof

 

33

 

shall be extended to the next succeeding Business Day and, with respect
to payments of principal, interest shall be payable at the applicable rate
during such extension.

 

4.04  Net Payments.  (a) 
All payments made by the Borrower hereunder and under any Note will be
made without setoff, counterclaim or other defense.  Except as provided in Section 4.04(b),
all such payments will be made free and clear of, and without deduction or
withholding for, any present or future taxes, levies, imposts, duties, fees,
assessments or other charges of whatever nature now or hereafter imposed by any
jurisdiction or by any political subdivision or taxing authority thereof or
therein with respect to such payments (but excluding, except as provided in the
second succeeding sentence, any tax imposed on or measured by the net income or
net profits (or franchise taxes imposed in lieu thereof) of an Agent or a
Lender pursuant to the laws of the jurisdiction in which it is organized or the
jurisdiction in which the principal office or applicable lending office of such
Lender is located or any subdivision thereof or therein) and all interest,
penalties or similar liabilities with respect to such non-excluded taxes,
levies, imposts, duties, fees, assessments or other charges (all such
non-excluded taxes, levies, imposts, duties, fees, assessments or other charges
being referred to collectively as “Taxes”). 
Except as provided in Section 4.04(b), if any Taxes are so levied
or imposed, the Borrower agrees to pay the full amount of such Taxes to the
relevant taxing authority, and such additional amounts as may be necessary so
that every payment of all amounts due under this Agreement or under any Note,
after withholding or deduction for or on account of any Taxes, will not be less
than the amount provided for herein or in such Note.  If any amounts are payable in respect of
Taxes pursuant to the preceding sentence, the Borrower agrees to reimburse each
Lender, upon the written request of such Lender, for taxes imposed on or
measured by the net income or net profits (or franchise taxes imposed in lieu
thereof) of such Lender pursuant to the laws of the jurisdiction in which such
Lender is organized or in which the principal office or applicable lending
office of such Lender is located or under the laws of any political subdivision
or taxing authority of any such jurisdiction in which such Lender is organized
or in which the principal office or applicable lending office of such Lender is
located and for any withholding of taxes as such Lender shall determine are
payable by, or withheld from, such Lender, in respect of such amounts so paid
to or on behalf of such Lender pursuant to the preceding sentence and in
respect of any amounts paid to or on behalf of such Lender pursuant to this
sentence.  The Borrower will furnish to
the Administrative Agent within 45 days after the date the payment of any Taxes
is due pursuant to applicable law certified copies of tax receipts evidencing
such payment by the Borrower.  The
Borrower agrees to indemnify and hold harmless each Lender, and reimburse such
Lender upon its written request, for the amount of any Taxes so levied or
imposed and paid by such Lender.

 

(b)           Each
Lender that is not a United States person (as such term is defined in Section 7701(a)(30)
of the Code) for U.S. Federal income tax purposes agrees to deliver to the
Borrower and the Administrative Agent on or prior to the Effective Date or, in
the case of (1) a Lender that is an assignee or transferee of an interest under
this Agreement pursuant to Section 1.13 or 14.04(b) (unless the respective
Lender was already a Lender hereunder immediately prior to such assignment or
transfer), on the date of such assignment or transfer to such Lender, or (2) a
Person that becomes a Lender as contemplated in Section 1.14, on the date
such Person becomes a Lender, (i) two accurate and complete original signed
copies of Internal Revenue Service Form W-8ECI or Form W-8BEN (with respect to
a complete exemption under an income tax treaty) (or successor forms)
certifying to such Lender’s entitlement to a complete

 

34

 

exemption from
United States withholding tax with respect to payments to be made under this
Agreement and under any Note, or (ii) if the Lender is not a “bank” within the
meaning of Section 881(c)(3)(A) of the Code and cannot deliver either
Internal Revenue Service Form W-8ECI or Form W-8BEN (with respect to a complete
exemption under an income tax treaty) (or any successor forms) pursuant to
clause (i) above, (x) a certificate substantially in the form of Exhibit E (any
such certificate, a “Section 4.04(b)(ii) Certificate”) and (y) two
accurate and complete original signed copies of Internal Revenue Service Form
W-8BEN (with respect to the portfolio interest exemption) (or successor form)
certifying to such Lender’s entitlement to a complete exemption from United
States withholding tax with respect to payments of interest to be made under
this Agreement and under any Note.  In
addition, each Lender agrees that from time to time after the Effective Date,
when a lapse in time or change in circumstances renders the previous
certification obsolete or inaccurate in any material respect, such Lender will
deliver to the Borrower and the Administrative Agent two new accurate and
complete original signed copies of Internal Revenue Service Form W-8ECI, Form
W-8BEN (with respect to the benefits of any income tax treaty), or Form W-8BEN
(with respect to the portfolio interest exemption) and a Section 4.04(b)(ii)
Certificate, as the case may be, and such other forms as may be required in
order to confirm or establish the entitlement of such Lender to a continued
exemption from or reduction in United States withholding tax with respect to
payments under this Agreement and any Note, or such Lender shall immediately
notify the Borrower and the Administrative Agent of its inability to deliver
any such Form or Certificate, in which case, if such Lender’s inability to
provide such forms or certificates is attributable to any changes that are
effective after the Effective Date in any applicable law, treaty, governmental
rule, regulations, guideline or order, or in the interpretation thereof,
relating to such United States withholding tax, such Lender shall not be
required to deliver any such Form or Certificate pursuant to this Section 4.04(b).  Notwithstanding anything to the contrary
contained in Section 4.04(a), but subject to Section 14.04(b) and the
immediately succeeding sentence, (x) the Borrower shall be entitled, to the
extent it is required to do so by law, to deduct or withhold income or similar
taxes imposed by the United States (or any political subdivision or taxing
authority thereof or therein) from interest, Fees or other amounts payable
hereunder for the account of any Lender which is not a United States person (as
such term is defined in Section 7701(a)(30) of the Code) for U.S. Federal
income tax purposes to the extent that such Lender has not provided to the
Borrower U.S. Internal Revenue Service Forms that establish a complete
exemption from such deduction or withholding and (y) the Borrower shall not be
obligated pursuant to Section 4.04(a) to pay additional amounts to a
Lender in respect of Taxes, income or similar taxes imposed by the United
States if (I) such Lender has not provided to the Borrower the Internal Revenue
Service Forms required to be provided to the Borrower pursuant to this Section 4.04(b)
or (II) in the case of a payment, other than interest, to a Lender described in
clause (ii) above, to the extent that such Forms do not establish a complete
exemption from withholding of such taxes. 
Notwithstanding anything to the contrary contained in the preceding
sentence or elsewhere in this Section 4.04 and except as set forth in Section 14.04(b),
the Borrower agrees to pay any additional amounts and to indemnify each Lender
in the manner set forth in Section 4.04(a) in respect of any amounts
deducted or withheld by it under the laws of any jurisdiction requiring such
deduction or withholding as described in the immediately preceding sentence as
a result of any changes that are effective after the Effective Date in any
applicable law, treaty, governmental rule, regulation, guideline or order, or
in the interpretation thereof, relating to the deducting or withholding of such
Taxes.

 

35

 

(c)           If
the Borrower pays any additional amount under this Section 4.04 to a
Lender and such Lender determines in its sole discretion that it has actually
received or realized in connection therewith any refund or any reduction of, or
credit against, its tax liabilities in or with respect to the taxable year in
which the additional amount is paid (a “Tax Benefit”), such Lender shall pay to
Borrower an amount that such Lender shall, in its sole discretion, determine is
equal to the net benefit, after tax, which was obtained by such Lender in such
year as a consequence of such Tax Benefit; provided, however, that (i) each
Lender may determine in its sole discretion consistent with the policies of
such Lender whether to seek a Tax Benefit; (ii) any taxes that are imposed on
any Lender as a result of a disallowance or reduction (including through the
expiration of any tax carryover or carryback of such Lender that otherwise
would not have expired) of any Tax Benefit with respect to which such Lender
has made a payment to the Borrower pursuant to this Section 4.04(c) shall
be treated as a Tax for which the Borrower is obligated to indemnify such
Lender pursuant to this Section 4.04 without any exclusions or defenses;
(iii) nothing in this Section 4.04(c) shall require any Lender to disclose
any confidential information to the Borrower (including, without limitation,
its tax returns) and (iv) no Lender shall be required to pay the Borrower any
amounts pursuant to this Section 4.04(c) at any time when a Default, or an
Event of Default, under Section 11.01 or 11.05 exists.

 

SECTION 5.  Conditions Precedent to Credit Events on
the Initial Borrowing Date.  The
obligation of each Lender to make Loans, and the obligation of each Issuing
Lender to issue Letters of Credit, on the Initial Borrowing Date, is subject at
the time of the making of such Loans or the issuance of such Letters of Credit
to the satisfaction of the following conditions:

 

5.01  Effective Date;
Notes.  On or prior to the
Initial Borrowing Date, (i) the Effective Date shall have occurred and (ii)
there shall have been delivered to the Administrative Agent for the account of
each of the Lenders that has requested same the appropriate Initial Term Note
and/or Revolving Note executed by the Borrower, and to the extent requested by
the Swingline Lender, the Swingline Note executed by the Borrower, in each
case, in the amount, maturity and as otherwise provided herein.

 

5.02  Officer’s
Certificate.  On the Initial
Borrowing Date, the Administrative Agent shall have received a certificate,
dated the Initial Borrowing Date and signed on behalf of the Borrower by the
Chief Executive Officer, the President or any corporate Vice President of the
Borrower, certifying on behalf of the Borrower that all of the conditions in
Sections 5.06, 5.07 and 7.01 have been satisfied on such date.

 

5.03  Opinions of
Counsel.  On the Initial
Borrowing Date, the Administrative Agent shall have received (i) from general
counsel of the Borrower, an opinion addressed to each Agent and each of the
Lenders and dated the Initial Borrowing Date covering such matters as the
Administrative Agent may reasonably request, (ii) from Shearman & Sterling
LLP, special counsel to the Credit Parties, an opinion addressed to each Agent
and each of the Lenders and dated the Initial Borrowing Date covering the
matters set forth in Exhibit F and such other matters incident to the transactions
contemplated herein as the Agents may reasonably request and (iii) from local
counsel in each State where any Mortgaged Property is located, an opinion in
form and substance reasonably satisfactory to the Agents addressed to each
Agent, the Collateral Agent and each of the Lenders and dated the Initial
Borrowing Date covering such matters

 

36

 

incident to the transactions contemplated herein as the Administrative
Agent may reasonably request.

 

5.04  Corporate
Documents; Proceedings; etc. 
(a)  On the Initial Borrowing
Date, the Administrative Agent shall have received a certificate from each
Credit Party, dated the Initial Borrowing Date, signed by the Chief Executive
Officer, the President or any Vice President of such Credit Party, and attested
to by the Secretary or any Assistant Secretary of such Credit Party, in the
form of Exhibit G with appropriate insertions, together with copies of the
certificate or articles of incorporation, certificate of formation, operating
agreements and by-laws (or equivalent organizational documents), as applicable,
of such Credit Party and the resolutions of such Credit Party referred to in
such certificate, and each of the foregoing shall be in form and substance
reasonably acceptable to the Administrative Agent.

 

(b)           On
the Initial Borrowing Date, all corporate, limited liability company,
partnership and legal proceedings and all instruments and agreements in
connection with the Bank Refinancing and the other transactions contemplated by
this Agreement and the other Credit Documents shall be reasonably satisfactory
in form and substance to the Administrative Agent, and the Administrative Agent
shall have received, in respect of each Credit Party, all information and
copies of all documents and papers, including records of corporate, limited
liability company and partnership proceedings, governmental approvals, good
standing certificates and bring-down telegrams or facsimiles, if any, which the
Administrative Agent reasonably may have requested in connection therewith,
such documents and papers where appropriate to be certified by proper
corporate, limited liability company, partnership or governmental authorities.

 

(c)           On
the Initial Borrowing Date, the ownership and capital structure (including,
without limitation, the terms of any equity interests, options, warrants or
other securities issued by the Borrower or any of its Subsidiaries) of the
Borrower and its Subsidiaries shall be in form and substance reasonably
satisfactory to the Administrative Agent.

 

5.05  Refinancing.  (a)  On
the Initial Borrowing Date, the total commitments in respect of the Existing
Credit Agreement shall have been terminated, and all loans and notes (together
with interest thereon) with respect thereto shall have been repaid in full, all
letters of credit issued thereunder shall have been terminated (or incorporated
as Existing Letters of Credit hereunder) and all other amounts (including
premiums and fees) owing pursuant to the Existing Credit Agreement shall have
been repaid in full (except as to indemnification obligations (if any) that are
not then due and payable).  In addition,
the creditors in respect of the Existing Credit Agreement shall have terminated
and released all security interests in and Liens on the assets of the Borrower
and its Subsidiaries created pursuant to any security documentation relating to
the Existing Credit Agreement, and such creditors shall have returned all such
assets to the Borrower or such Subsidiary.

 

(b)           On or prior to the Initial Borrowing Date, the Borrower
shall have irrevocably instructed the trustee under the Existing Senior
Subordinated Notes Indenture in writing to mail to the holders of the Existing
Senior Subordinated Notes, on or prior to the second Business Day following the
Initial Borrowing Date, a redemption notice (a “Redemption Notice”) pursuant
to, and in accordance with the requirements of, the Existing Senior 

 

37

 

Subordinated Notes Documents, which Redemption
Notice shall specify that 100% of the outstanding Existing Senior Subordinated
Notes shall be redeemed on a date that is no later than the 45th day following
the Initial Borrowing Date (the date upon which such redemption actually
occurs, the “Redemption Date”).

 

(c)           The Administrative Agent shall have received evidence
reasonably satisfactory to it that the matters set forth in this Section 5.05
have been satisfied on or prior to the Initial Borrowing Date.

 

5.06  Adverse Change;
Governmental and Third Party Approvals; etc.  (a)  On
the Initial Borrowing Date, nothing shall have occurred (and no Agent nor any
Lenders shall have become aware of any facts, conditions or other information
not previously known) which any Agent or the Required Lenders reasonably
determine has had, or could reasonably be expected to have, a Material Adverse
Effect.

 

(b)           On
or prior to the Initial Borrowing Date, all necessary governmental (domestic
and foreign) and material third party approvals in connection with the transactions
contemplated by the Credit Documents shall have been obtained and remain in
effect, and all applicable waiting periods shall have expired without any
action being taken by any competent authority which restrains, prevents or
imposes materially adverse conditions upon the consummation of the transactions
contemplated by the Credit Documents. 
Additionally, there shall not exist any judgment, order, injunction or
other restraint issued or filed or a hearing seeking injunctive relief or other
restraint pending or notified prohibiting or imposing materially adverse
conditions upon the making of any Loan, issuance of any Letter of Credit or the
consummation of the transactions contemplated by the Credit Documents.

 

5.07  Litigation.  On the Initial Borrowing Date, no litigation
by any entity (private or governmental) shall be pending or, to the knowledge
of the Borrower or any of its Subsidiaries, threatened with respect to this
Agreement, any other Credit Document or any other documentation executed in
connection herewith and therewith or the transactions contemplated hereby and
thereby, or which any Agent or the Required Lenders shall reasonably determine
has had, or could reasonably be expected to have, a Material Adverse Effect.

 

5.08  Pledge Agreement. 
On the Initial Borrowing Date, each Credit Party shall have duly
authorized, executed and delivered the Pledge Agreement in the form of Exhibit
H (as amended, restated, modified and/or supplemented from time to time, the “Pledge
Agreement”) and shall have delivered to the Collateral Agent, as Pledgee
thereunder, all of the Pledge Agreement Collateral, if any, referred to therein
and then owned by such Credit Party, (x) endorsed in blank in the case of
promissory notes constituting Pledge Agreement Collateral and (y) together with
executed and undated endorsements for transfer in the case of Equity Interests
constituting certificated Pledge Agreement Collateral, along with evidence that
all other actions necessary or, in the reasonable opinion of the Collateral
Agent, desirable, to perfect the security interests purported to be created by
the Pledge Agreement have been taken, and the Pledge Agreement shall be in full
force and effect.

 

5.09  Security
Agreement.  On the Initial
Borrowing Date, each Credit Party shall have duly authorized, executed and
delivered the Security Agreement in the form of Exhibit I (as

 

38

 

amended, restated, modified and/or supplemented from time to time, the “Security
Agreement”) covering all of such Credit Party’s Security Agreement Collateral,
together with:

 

(i)            Financing
Statements (Form UCC-1 or the equivalent) in proper form for filing under the
UCC or other appropriate filing offices of each jurisdiction as may be
necessary or, in the reasonable opinion of the Collateral Agent, desirable, to
perfect the security interests purported to be created by the Security
Agreement;

 

(ii)           certified
copies of Requests for Information or Copies (Form UCC-11), or equivalent
reports as of a recent date, listing all effective financing statements that
name the Borrower or any of its Subsidiaries as debtor and that are filed in
the jurisdictions referred to in clause (i) above or in any other jurisdiction
where the chief executive office, any record office, any Mortgaged Property or
any inventory or equipment of the Borrower or any of its Subsidiaries is
located, together with copies of such other financing statements that name the
Borrower or any of its Subsidiaries as debtor (none of which shall cover any of
the Collateral except (x) to the extent evidencing Permitted Liens or (y) those
in respect of which the Collateral Agent shall have received termination
statements (Form UCC-3) or such other termination statements as shall be
required by local law fully executed for filing);

 

(iii)          evidence
of the completion or performance, as the case may be, of all other recordings
and filings of, or with respect to, the Security Agreement as may be necessary
or, in the reasonable opinion of the Collateral Agent, desirable, to perfect
the security interests intended to be created by the Security Agreement; and

 

(iv)          evidence
that all other actions necessary or, in the reasonable opinion of the
Collateral Agent, desirable to perfect and protect the security interests
purported to be created by the Security Agreement have been or are being taken,
and the Security Agreement shall be in full force and effect.

 

5.10  Subsidiaries
Guaranty.  On the Initial
Borrowing Date, each Subsidiary Guarantor shall have duly authorized, executed
and delivered the Subsidiaries Guaranty in the form of Exhibit J (as amended,
restated, modified and/or supplemented from time to time, the “Subsidiaries
Guaranty”), and the Subsidiaries Guaranty shall be in full force and effect.

 

5.11  Mortgages;
Title Insurance; Survey.  On the
Initial Borrowing Date, the Collateral Agent shall have received:

 

(i)            fully
executed counterparts of Mortgages, each in form and substance reasonably
satisfactory to the Administrative Agent, which Mortgages shall cover such of
the Real Property owned by the Borrower or any Subsidiary Guarantor and
designated as “Mortgaged Property” on Schedule 5.11, together with
evidence that counterparts of such Mortgages have been delivered to the title
insurance company insuring the Lien of such Mortgages for recording in all
places to the extent necessary or, in the reasonable opinion of the Collateral
Agent desirable, to effectively create a valid and enforceable first priority
mortgage lien, subject only to Permitted Encumbrances, on such Mortgaged

 

39

 

Property in favor
of the Collateral Agent (or such other trustee as may be required or desired
under local law) for the benefit of the Secured Creditors;

 

(ii)           UCC-1
Fixture Filings covering each Mortgaged Property;

 

(iii)          such
consents, approvals, amendments, supplements, estoppels, tenant subordination
agreements or other instruments as shall be reasonably deemed necessary by the
Administrative Agent in order for the owner or holder of any fee interest
constituting such Mortgaged Property to grant the Lien contemplated by the
Mortgage with respect to such Mortgaged Property;

 

(iv)          a
Mortgage Policy relating to each Mortgage issued by First American Title
Insurance Company (the “Title Company”) reasonably satisfactory to the
Collateral Agent, in an insured amount (which amount shall not exceed 100% of
the fair market value of the Mortgaged Property related to the respective
Mortgage Policy) satisfactory to the Collateral Agent and insuring the
Collateral Agent that each Mortgage creates a valid and enforceable first
priority mortgage lien on the respective Mortgaged Property subject thereto,
free and clear of all defects and encumbrances except Permitted Encumbrances.  Each Mortgage Policy (w) shall be in form and
substance reasonably satisfactory to the Collateral Agent, (x) shall include,
to the extent available on a commercially reasonable basis in the applicable
jurisdiction, supplemental endorsements (including, without limitation,
endorsements relating to future advances under this Agreement and the Notes,
usury, first loss, last dollar, tax parcel, subdivision, zoning, contiguity,
variable rate, doing business, public road access, survey, environmental lien,
mortgage tax and so-called comprehensive coverage over covenants and
restrictions and for any other matters that the Collateral Agent in its
discretion may reasonably request), (y) shall not include the “standard” title
exceptions, the “standard” survey exception or an exception for mechanics’
liens, and (z) shall provide for affirmative insurance and such reinsurance as
the Collateral Agent in its discretion may reasonably request;

 

(v)           such
affidavits, certificates, information (including financial data) and instruments
of indemnification (including, without limitation, a so-called “gap”
indemnification) as shall be required to induce the title company to issue the
Mortgage Policies referred to in subsection (iv) above;

 

(vi)          (A)
a copy of the existing survey of each Mortgaged Property, together with a “no-change”
affidavit, if such are acceptable to the Title Company referred to in preceding
clause (iv) and sufficient for the Title Company to remove all standard survey
exceptions from the Mortgage Policy relating to such Mortgaged Property and
issue the endorsements required pursuant to the provisions of preceding clause
(iv) or (B) a survey of each Mortgaged Property (and all improvements thereon)
(a) prepared by a surveyor or engineer licensed to perform surveys in the
state, commonwealth or applicable jurisdiction where such Mortgaged Property is
located, (b) dated not earlier than six months prior to the date of delivery
thereof unless there shall have occurred within six months prior to such date
of delivery any exterior construction on the site of such Mortgaged Property,
in which event such survey shall be dated after the completion of such
construction or if such construction shall not have been completed as of such
date of

 

40

 

delivery, not
earlier than twenty days prior to such date of delivery, (c) certified by the
surveyor (in a manner reasonably acceptable to the Collateral Agent) to the
Collateral Agent in its capacity as such, White & Case LLP and the Title
Company, (d) complying in all respects with the minimum detail requirements of
the American Land Title Association as such requirements are in effect on the
date or preparation of such survey, and (e) sufficient for the Title Company to
remove all standard survey exceptions from the Mortgage Policy relating to such
Mortgaged Property and issue the endorsements required pursuant to the
provisions of preceding clause (iv);

 

(vii)         to
the extent requested by the Collateral Agent, copies of all leases in which the
Borrower or any of its Subsidiaries holds the lessor’s interest or other
agreements relating to possessory interests, if any; provided that, to
the extent any of the foregoing affect such Mortgaged Property, such agreements
shall be subordinate to the Liens of the Mortgage to be recorded against such
Mortgaged Property, either expressly by its terms or pursuant to a
subordination, non-disturbance and attornment agreement (with any such
agreement being reasonably acceptable to the Administrative Agent); and

 

(viii)        flood
certificates covering each Mortgaged Property in form and substance acceptable
to the Administrative Agent, certified to the Collateral Agent in its capacity
as such and certifying whether or not each such Mortgaged Property is located
in a flood hazard zone by reference to the applicable FEMA map.

 

5.12  Solvency
Certificate; Insurance Certificates.  On the Initial Borrowing Date, the
Administrative Agent shall have received:

 

(i)            a
solvency certificate from the chief financial officer of the Borrower in the
form of Exhibit K; and

 

(ii)           certificates
of insurance complying with the requirements of Section 9.03 for the
business and properties of the Borrower and its Subsidiaries, in form and
substance reasonably satisfactory to the Administrative Agent and naming the
Collateral Agent as an additional insured and/or as loss payee, and stating
that such insurance shall not be canceled without at least 30 days’ prior
written notice by the insurer to the Collateral Agent.

 

5.13  Fees, etc.  On the Initial Borrowing Date, the Borrower
shall have paid to each Agent and each Lender all costs, fees and expenses
(including, without limitation, legal fees and expenses) payable to such Agent
or such Lender to the extent then due.

 

SECTION 6.  Conditions Precedent to each Incurrence of
Incremental Term Loans.  The
obligation of each Lender party to any Incremental Commitment Agreement to make
Incremental Term Loans as contemplated therein and by this Agreement, is
subject at the time of the making of such Incremental Term Loans to the
satisfaction of the following conditions:

 

6.01  Occurrence
of Syndication Date and Initial TL Commitment Termination Date.  The Syndication Date and the Initial TL
Commitment Termination Date shall have already occurred.

 

41

 

6.02  Incremental
Commitment Agreement; Related Documentation.  The Administrative Agent shall have received
the respective Incremental Commitment Agreement, executed by each party thereto
(which execution may be in counterparts), and the Administrative Agent shall
have received all related documentation in accordance with the requirements of Section 1.14(b),
in each case to the reasonable satisfaction of the Administrative Agent.

 

6.03  Incremental
Term Notes.  There shall have
been delivered to the Administrative Agent for the account of each of the
relevant Incremental Lenders that has requested same the appropriate
Incremental Term Note executed by the Borrower in the amount, with the maturity
and in the form as otherwise provided herein.

 

6.04  Officer’s
Certificate.  On the date of each
incurrence of Incremental Term Loans, the Administrative Agent shall have
received a certificate, dated the date of such incurrence, signed by the Chief
Executive Officer, the President, any corporate Vice President or the Treasurer
of the Borrower certifying that the Incremental Term Loans are being incurred
in accordance with the requirements of Sections 1.01(e), 1.14 and the relevant
Incremental Commitment Agreement and representations and warranties contained
in this Agreement, and showing in reasonable detail calculations of compliance
with the requirements of clause (xii) of Section 1.14(a).

 

6.05  Other Conditions
Specified in the Relevant Incremental Commitment Agreement.  If any other conditions precedent are
specified in the relevant Incremental Commitment Agreement, such conditions
precedent shall be satisfied on the date of the incurrence of the respective
Incremental Term Loans.

 

SECTION 7.  Conditions Precedent to All Credit Events.  The obligation of each Lender to make Loans
(including Loans made on the Initial Borrowing Date or the Redemption Date, as
the case may be), and the obligation of each Issuing Lender to issue Letters of
Credit (including Letters of Credit issued on the Initial Borrowing Date), is
subject, at the time of each such Credit Event, to the satisfaction of the
following conditions:

 

7.01  No Default;
Representations and Warranties.  At
the time of each such Credit Event and also after giving effect thereto (i)
there shall exist no Default or Event of Default and (ii) all representations
and warranties contained herein and in the other Credit Documents shall be true
and correct in all material respects with the same effect as though such
representations and warranties had been made on the date of such Credit Event
(it being understood and agreed that any representation or warranty which by
its terms is made as of a specified date shall be required to be true and
correct in all material respects only as of such specified date).

 

7.02  Notice of
Borrowing; Letter of Credit Request. 
(a)  Prior to the making of each
Loan (other than a Swingline Loan or a Revolving Loan made pursuant to a
Mandatory Borrowing), the Administrative Agent shall have received a Notice of
Borrowing meeting the requirements of Section 1.03(a).  Prior to the making of each Swingline Loan,
the Swingline Lender shall have received the notice referred to in Section 1.03(b)(i).

 

42

 

(b)           Prior
to the issuance of each Letter of Credit, the Administrative Agent and the
respective Issuing Lender shall have received a Letter of Credit Request
meeting the requirements of Section 2.03(a).

 

The acceptance of the
benefits of (i) each Credit Event occurring on the Initial Borrowing Date shall
constitute a representation and warranty by the Borrower to the Administrative
Agent and each of the Lenders that all the conditions specified in Section 5
have been satisfied (except to the extent the satisfaction of such conditions
are subject to the discretion of the Administrative Agent and/or the Required
Lenders or which have been waived by the Required Lenders), (ii) each Credit
Event consisting of Incremental Term Loans shall constitute a representation
and warranty by the Borrower to the Administrative Agent and each of the
Lenders that all the conditions specified in Section 6 have been satisfied
(except to the extent that the satisfaction of such conditions are subject to
the discretion of the Administrative Agent) and (iii) all Credit Events on or
after the Initial Borrowing Date and applicable to such Credit Event shall
constitute a representation and warranty by the Borrower to the Administrative
Agent and each of the Lenders that all the conditions specified in Section 7
have been satisfied as of that time.  All
of the Notes, certificates, legal opinions and other documents and papers
referred to in Section 5 and 6 and in this Section 7, unless
otherwise specified, shall be delivered to the Administrative Agent at the
Notice Office for the account of each of the Lenders and, except for the Notes,
in sufficient counterparts or copies for each of the Lenders and shall be in
form and substance reasonably satisfactory to the Administrative Agent and the
Required Lenders.

 

SECTION 8.  Representations, Warranties and Agreements.  In order to induce the Lenders to enter into
this Agreement and to make the Loans, and issue (or participate in) the Letters
of Credit as provided herein, the Borrower makes the following representations,
warranties and agreements, all of which shall survive the execution and
delivery of this Agreement and the Notes and the making of the Loans and the
issuance of the Letters of Credit, with the occurrence of each Credit Event on or
after the Initial Borrowing Date being deemed to constitute a representation
and warranty that the matters specified in this Section 8 are true and
correct in all material respects on and as of the Initial Borrowing Date and on
the date of each such other Credit Event (it being understood and agreed that
any representation or warranty which by its terms is made as of a specified
date shall be required to be true and correct in all material respects only as
of such specified date).

 

8.01  Organizational
Status.  Each of the Borrower and its
Subsidiaries (other than the Existing Non-Material Subsidiaries) (i) is a duly
organized and validly existing corporation, partnership or limited liability
company, as the case may be, in good standing under the laws of the
jurisdiction of its organization, (ii) has the corporate, partnership or
limited liability company power and authority, as the case may be, to own its
property and assets and to transact the business in which it is engaged and
presently proposes to engage and (iii) is duly qualified and is authorized to
do business and is in good standing in each jurisdiction where the ownership,
leasing or operation of its property or the conduct of its business requires
such qualifications except for failures to be so qualified which, either
individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect.

 

8.02  Power and
Authority; Enforceability. 
Each Credit Party has the corporate, partnership or limited liability
company power and authority, as the case may be, to execute,

 

43

 

deliver and perform the terms and provisions of each of the Credit
Documents to which it is party and has taken all necessary corporate,
partnership or limited liability company action, as the case may be, to
authorize the execution, delivery and performance by it of each of such Credit
Documents.  Each Credit Party has duly
executed and delivered each of the Credit Documents to which it is party, and
each of such Credit Documents constitutes its legal, valid and binding
obligation enforceable in accordance with its terms, except to the extent that
the enforceability thereof may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws generally affecting creditors’
rights and by equitable principles (regardless of whether enforcement is sought
in equity or at law).

 

8.03  No Violation.  Neither the execution, delivery or
performance by any Credit Party of the Credit Documents to which it is a party,
nor compliance by it with the terms and provisions thereof, (i) will contravene
any provision of any law, statute, rule or regulation or any order, writ,
injunction or decree of any court or governmental instrumentality, (ii) will
conflict with or result in any breach (other than any conflict with or breach
of Sections 10.12, 10.17 and 10.20 of the Existing Senior Subordinated Note
Indenture existing on prior to the 45th day following the Initial Borrowing
Date) of any of the terms, covenants, conditions or provisions of, or
constitute a default under, or result in the creation or imposition of (or the
obligation to create or impose) any Lien (except pursuant to the Security
Documents) upon any of the property or assets of the Borrower or any of its
Subsidiaries pursuant to the terms of any indenture, mortgage, deed of trust,
credit agreement or loan agreement, or any other material agreement, contract
or instrument, in each case to which the Borrower or any of its Subsidiaries is
a party or by which it or any of its property or assets is bound or to which it
may be subject, or (iii) will violate any provision of the certificate or
articles of incorporation, certificate of formation, limited liability company
agreement or by-laws (or equivalent organizational documents), as applicable,
of the Borrower or any of its Subsidiaries.

 

8.04  Approvals.  No order, consent, approval, license,
authorization or validation of, or filing, recording or registration with
(except (x) for those that have otherwise been obtained or made on or prior to
the Initial Borrowing Date and which remain in full force and effect on the
Initial Borrowing Date and (y) filings which are necessary to perfect the Liens
created under the Security Documents, which filings (other than in respect of
motor vehicles, tractors and trailers) shall be made within 10 days following
the Initial Borrowing Date), or exemption by, any governmental or public body
or authority, or any subdivision thereof, is required to be obtained or made
by, or on behalf of, any Credit Party to authorize, or is required to be
obtained or made by, or on behalf of, any Credit Party in connection with, (i)
the execution, delivery and performance of any Credit Document (ii) the
legality, validity, binding effect or enforceability of any such Credit
Document or (iii) the consummation of the Refinancing.

 

8.05  Financial
Statements; Financial Condition; Undisclosed Liabilities.  (a) 
The consolidated balance sheet of the Borrower for its fiscal years ended
on December 29, 2001, December 28, 2002 and January 3, 2004, and
for its quarterly accounting period ended June 19, 2004, and the related
consolidated statements of income, cash flows and shareholders’ equity of the
Borrower for its fiscal year or two fiscal quarter period, as the case may be,
ended on such dates, copies of which have been furnished to the Lenders prior
to the Initial Borrowing Date, present fairly in all material respects the
consolidated financial position of the Borrower at the dates of such balance
sheets and the consolidated results of the operations of the Borrower for

 

44

 

the periods covered thereby.  All
of the foregoing historical financial statements have been prepared in accordance
with generally accepted accounting principles (except, in the case of the
aforementioned interim statements, for normal year end audit adjustments and
the absence of footnotes).

 

(b)           On
and as of the Initial Borrowing Date and after giving effect to the
transactions contemplated hereby and to all Indebtedness (including the Loans)
being incurred or assumed and Liens created by the Credit Parties in connection
therewith, (i) the sum of the assets, at a fair valuation, of the Borrower on a
stand-alone basis and of the Borrower and its Subsidiaries taken as a whole
will exceed their respective debts, (ii) each of the Borrower on a stand-alone
basis and the Borrower and its Subsidiaries taken as a whole have not incurred
and do not intend to incur, and do not believe that they will incur, debts
beyond their respective ability to pay such debts as such debts mature, and
(iii) the Borrower on a stand-alone basis and the Borrower and its Subsidiaries
taken as a whole will have sufficient capital with which to conduct their
respective businesses.  For purposes of
this Section 8.05(b), “debt” means any liability on a claim, and “claim”
means (a) right to payment, whether or not such a right is reduced to judgment,
liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed,
undisputed, legal, equitable, secured, or unsecured or (b) right to an
equitable remedy for breach of performance if such breach gives rise to a
payment, whether or not such right to an equitable remedy is reduced to
judgment, fixed, contingent, matured, unmatured, disputed, undisputed, secured
or unsecured.  The amount of contingent
liabilities at any time shall be computed as the amount that, in the light of
all the facts and circumstances existing at such time, represents the amount
that can reasonably be expected to become an actual or matured liability.

 

(c)           Except
(i) as fully disclosed in the financial statements delivered pursuant to Section 8.05(a)
and (ii) Indebtedness of the type described in Section 10.04(viii) and
outstanding on the Initial Borrowing Date, there were as of the Initial
Borrowing Date no liabilities or obligations with respect to the Borrower or
any of its Subsidiaries of any nature whatsoever (whether absolute, accrued,
contingent or otherwise and whether or not due) which, either individually or
in the aggregate, could reasonably be expected to have a Material Adverse
Effect.  As of the Initial Borrowing
Date, the Borrower knows of no basis for the assertion against it or any of its
Subsidiaries of any liability or obligation of any nature whatsoever that is
not fully disclosed in the financial statements delivered pursuant to Section 8.05(a)
or referred to in the immediately preceding sentence which, either individually
or in the aggregate, would reasonably be expected to have a Material Adverse
Effect.

 

(d)           The
Projections delivered to the Administrative Agent and the Lenders prior to the
Initial Borrowing Date have been prepared in good faith and are based on
reasonable assumptions, and there are no statements or conclusions in the
Projections which are based upon or include information known to the Borrower
to be misleading in any material respect or which fail to take into account
material information known to the Borrower regarding the matters reported therein.  On the Initial Borrowing Date, the Borrower
believes that the Projections are reasonable and attainable, it being
recognized by the Lenders, however, that projections as to future events are
not to be viewed as facts and that the actual results during the period or
periods covered by the Projections may differ from the projected results and
such differences may be material.

 

45

 

(e)           Since
January 3, 2004 nothing has occurred that has had, or would reasonably be
expected to have, a Material Adverse Effect.

 

8.06  Litigation.  There are no actions, suits or proceedings
pending or, to the knowledge of the Borrower, threatened (i) with respect to
any Credit Document, (ii) the Refinancing or (iii) that could reasonably be
expected, either individually or in the aggregate, to have a Material Adverse
Effect.

 

8.07  True and Complete
Disclosure.  All factual information
furnished by or on behalf of the Borrower in writing to the Administrative
Agent or any Lender for purposes of or in connection with this Agreement, the
other Credit Documents or any transaction contemplated herein or therein is,
and all other such factual information hereafter furnished by or on behalf of
the Borrower in writing to the Administrative Agent or any Lender will be,
taken as whole, true and accurate in all material respects on the date as of
which such information is dated or certified and not incomplete by omitting to
state any fact necessary to make such information not misleading in any
material respect at such time in light of the circumstances under which such
information was provided.

 

8.08  Use of Proceeds;
Margin Regulations.  (a)  All proceeds of the Initial Term Loans shall
be utilized by the Borrower (i) on the Redemption Date, to (x) finance the
Existing Senior Subordinated Notes Redemption and (y) pay fees and expenses
incurred in connection therewith and (ii) to the extent in excess of the amount
necessary for the purposes described in preceding clause (i), for working capital
and general corporate purposes (including, without limitation, to repay
outstanding Revolving Loans).

 

(b)           Up
to, but no more than $45,000,000 of Revolving Loans and Swingline Loans shall
be utilized by the Borrower on the Initial Borrowing Date to finance the Bank
Refinancing and to pay fees and expenses incurred in connection therewith and
in connection with the entering into of this Agreement and the other Credit
Documents.  Proceeds of all other
Revolving Loans and the Swingline Loans shall be used for the working capital
and general corporate purposes of the Borrower and its Subsidiaries (including
to effect Permitted Acquisitions and make Capital Expenditures, in each case to
the extent otherwise permitted by this Agreement).

 

(c)           All proceeds of Incremental Term Loans shall be used solely
(i) to finance Permitted Acquisitions, (ii) to finance Capital Expenditures and
the Borrower’s and its Subsidiaries’ other general corporate purposes and (iii)
to repay outstanding Term Loans and Revolving Loans.

 

(d)           Notwithstanding anything to the contrary contained in this Section 8.08
or elsewhere in the this Agreement, it is understood and agreed that no
proceeds of any Loan shall be used to pay any Dividend regardless of whether
such Dividend is permitted pursuant to Section 10.03 or elsewhere in this
Agreement, provided that proceeds of Revolving Loans may be used to pay
Dividends permitted pursuant to Section 10.03 to the extent such proceeds
do not exceed the actual amount of internally generated cash of the Borrower
and its Subsidiaries previously applied to repay outstanding Revolving Loans.

 

46

 

(e)           No part of any Credit Event (or the proceeds thereof) will
be used to purchase or carry any Margin Stock or to extend credit for the
purpose of purchasing or carrying any Margin Stock.  Neither the making of any Loan, nor the use
of the proceeds thereof, nor the occurrence of any other Credit Event, will
violate or be inconsistent with the provisions of Regulation T, U or X of the
Board of Governors of the Federal Reserve System.

 

8.09  Tax Returns
and Payments.  Each of the
Borrower and each of its Subsidiaries has timely (which shall include any
automatic or discretionary filing extensions) filed or caused to be timely
filed with the appropriate taxing authority all federal and state income tax
returns and all other material tax returns, domestic and foreign (the “Returns”)
required to be filed by, or with respect to the income, properties or
operations of, the Borrower and/or any of its Subsidiaries.  The Returns accurately reflect in all
material respects all liability for taxes of the Borrower and its Subsidiaries
for the periods covered thereby.  Each of
the Borrower and each of its Subsidiaries has paid all material taxes and
assessments payable by it which have become due, other than those that are
being contested in good faith, that have been adequately disclosed on the
financial statements of the Borrower and its Subsidiaries and for which
adequate reserves are maintained in accordance with generally accepted
accounting principles.  The Borrower and
each of its Subsidiaries has at all times paid, or has provided adequate
reserves (as determined in good faith by the Borrower) for the payment of, all
federal, state and foreign income taxes applicable for all prior fiscal years
and for the current year to date.  There
is no material action, suit, proceeding, investigation, audit or claim now
pending or, to the knowledge of the Borrower, threatened by any authority
regarding any taxes relating to the Borrower or any of its Subsidiaries.  Neither the Borrower nor any of its
Subsidiaries has entered into an agreement or waiver or been requested to enter
into an agreement or waiver extending any statute of limitations relating to
the payment or collection of federal income taxes or other material taxes of
the Borrower or any of its Subsidiaries, or is aware of any circumstances that
would cause the taxable years or other taxable periods of the Borrower or any
of its Subsidiaries not to be subject to the normally applicable statute of
limitations.  Neither the Borrower nor
any of its Subsidiaries has incurred, nor will any of them incur, any material
tax liability in connection with any other transactions contemplated hereby.

 

8.10  Compliance
with ERISA.  (a) No facts or
circumstances exist which would reasonably be expected to have a Material
Adverse Effect in connection with the failure of any Plan, or the failure of
the Borrower or an ERISA Affiliate with regard to any Plan, to comply with its
terms and with all applicable laws, including, without limitation, ERISA and
the Code.

 

(b)           Except with respect to any matter specified in this Section 8.10(b)
(either individually or in the aggregate) which would not reasonably be
expected to have a Material Adverse Effect, and, additionally, to the knowledge
of the Borrower in the case of any matter relating to a Plan which is a
multiemployer plan (as defined in Section 4001(a)(3) of ERISA):

 

(i)            each Plan
(and each related trust, if any) which is intended to be qualified under Section 401(a)
of the Code has received a determination letter from the Internal Revenue
Service to the effect that it meets the requirements of Sections 401(a) and
501(a) of the Code (or relies on an opinion letter issued to the sponsor of a
prototype or volume submitter plan, or has submitted, or is within the remedial
amendment period for

 

47

 

submitting, an application for a determination letter
with the Internal Revenue Service and is awaiting receipt of a response);

 

(ii)           no
Reportable Event has occurred within the past five (5) years;

 

(iii)          no
Plan which is a multiemployer plan (as defined in Section 4001(a)(3) of
ERISA) is insolvent or in reorganization;

 

(iv)          no Plan
subject to Title IV of ERISA (other than any Plan that is a multiemployer plan)
has an Unfunded Current Liability which, when added to the aggregate amount of
Unfunded Current Liabilities with respect to all other Plans subject to Title IV
of ERISA, exceeds $16,000,000;

 

(v)           no Plan
which is subject to Section 412 of the Code or Section 302 of ERISA
has an accumulated funding deficiency, within the meaning of such sections of
the Code or ERISA, or has applied for or received a waiver of an accumulated
funding deficiency or an extension of any amortization period, within the
meaning of Section 412 of the Code or Section 303 or 304 of ERISA;

 

(vi)          all
contributions required to be made with respect to a Plan have been timely made;

 

(vii)         neither
the Borrower nor any Subsidiary of the Borrower nor any ERISA Affiliate has
incurred any liability (including any indirect, contingent or secondary
liability) to or on account of a Plan pursuant to Section 409, 502(i),
502(l), 515, 4062, 4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or Section 401(a)(29),
4971 or 4975 of the Code or expects to incur any such liability under any of
the foregoing sections with respect to any Plan;

 

(viii)        to
the knowledge of the Borrower, no condition exists which could reasonably be
expected to present a risk to the Borrower or any Subsidiary of the Borrower or
any ERISA Affiliate of incurring a liability to or on account of a Plan
pursuant to the provisions of ERISA and the Code set forth in subsection (vii)
of Section 8.10(b);

 

(ix)           no
proceedings have been instituted pursuant to Section 4042 of ERISA to
terminate or appoint a trustee to administer any Plan which is subject to Title
IV of ERISA;

 

(x)            no
action, suit, proceeding, hearing, or, to the knowledge of the Borrower, audit
or investigation with respect to the administration, operation or the
investment of assets of any Plan (other than routine claims for benefits) is
pending, expected or, to Borrower’s knowledge, threatened;

 

(xi)           neither
the Borrower nor any ERISA Affiliate has, or could reasonably be expected to
incur, directly or indirectly, any withdrawal liability within the meaning of Section 4201
of ERISA in the event of a complete withdrawal from all Plans which are
multiemployer plans;

 

48

 

(xii)          each
group health plan (as defined in Section 607(1) of ERISA or Section 4980B(g)(2)
of the Code) which covers or has covered employees or former employees of the
Borrower, any Subsidiary of the Borrower, or any ERISA Affiliate has at all
times been operated in compliance with the provisions of Part 6 of subtitle B
of Title I of ERISA and Section 4980B of the Code, except to the extent
that any such noncompliance would not result in a material liability;

 

(xiii)         each
group health plan (as defined in 45 Code of Federal Regulations Section 160.103)
which covers or has covered employees or former employees of the Borrower, any
Subsidiary of the Borrower, or any ERISA Affiliate has at all times been
operated in compliance with the provisions of the Health Insurance Portability
and Accountability Act of 1996 and the regulations promulgated thereunder,
except to the extent that any such noncompliance would not result in a material
liability; and

 

(xiv)        no
lien imposed under the Code or ERISA on the assets of the Borrower or any
Subsidiary of the Borrower or any ERISA Affiliate exists or is likely to arise
on account of any Plan; and

 

(xv)         except as
set forth on Part B to Schedule 9.07, the Borrower and its Subsidiaries do
not maintain or contribute to any employee welfare benefit plan (as defined in Section 3(1)
of ERISA) which provides benefits to retired employees or other former
employees (other than as required by Section 601 of ERISA or state
insurance continuation laws that are not preempted by ERISA).

 

(c)           To the knowledge of the Borrower, no facts or circumstances
exist which could (either individually or in the aggregate) reasonably be
expected to have a Material Adverse Effect in connection with the failure of
any Foreign Pension Plan, or the failure of the Borrower or any of its
Subsidiaries with regard to any Foreign Pension Plan, to comply with its terms
and with the requirements of any and all applicable laws, statutes, rules,
regulations and orders and has been maintained, where required, in good
standing with applicable regulatory authorities.  Except with respect to matters specified in
clauses (i), (ii) and/or (iii) below which (either individually or in the
aggregate) could not reasonably be expected to have a Material Adverse
Effect:  (i) all contributions required
to be made with respect to a Foreign Pension Plan have been timely made; (ii)
neither the Borrower nor any of its Subsidiaries has incurred any obligation in
connection with the termination of or withdrawal from any Foreign Pension Plan;
and (iii) the present value of the accrued benefit liabilities (whether or not
vested) under each Foreign Pension Plan, determined as of the end of the
Borrower’s most recently ended fiscal year on the basis of actuarial
assumptions, each of which is reasonable, did not exceed the current value of
the assets of such Foreign Pension Plan allocable to such benefit liabilities.

 

8.11  The Security
Documents.  (a)  The provisions of the Security Agreement are
effective to create in favor of the Collateral Agent for the benefit of the
Secured Creditors a legal, valid and enforceable security interest in all
right, title and interest of the Credit Parties in the Security Agreement
Collateral described therein, and the Collateral Agent, for the benefit of the
Secured Creditors, has a fully perfected security interest in all right, title
and interest in all of the Security Agreement Collateral described therein to
the extent that such security interest in such Security Agreement Collateral
may be perfected pursuant to the relevant UCC, subject to

 

49

 

no other Liens other than Permitted Liens; provided that there
shall be no violation of the representations and warranties contained in this Section 8.11(a)
as a consequence of the failure to perfect the security interest granted
pursuant to the Security Agreement in (i) any Collateral of the type described
in Section 2.9 of the Security Agreement as long as the obligation of the
respective Credit Party to take action to perfect the security interest in such
Collateral has not arisen under Section 2.9 of the Security Agreement,
(ii) Deposit Accounts or Letter-of-Credit Rights (in each case as such term is
defined in the Security Agreement) as long as the obligation of the applicable
Credit Party to take action such that the Collateral Agent obtains “control”
over such Collateral pursuant to the relevant UCC has not yet arisen under Section 3.9
or 3.10 (as applicable) of the Security Agreement or (iii) Commercial Tort
Claims (as defined in the Security Agreement) so long as the obligation of the
respective Credit Party to take action to perfect the security interest in such
Commercial Tort Claim has not yet arisen under Section 3.11 of the Security
Agreement.  The recordation of (x) the
Grant of Security Interest in U.S. Patents and (y) the Grant of Security
Interest in U.S. Trademarks in the respective form attached to the Security
Agreement, in each case in the United States Patent and Trademark Office,
together with filings on Form UCC-1 made pursuant to the Security Agreement,
will create, as may be perfected by such filings and recordation, a perfected
security interest in the United States trademarks and patents covered by the
Security Agreement, and the recordation of the Grant of Security Interest in
U.S. Copyrights in the form attached to the Security Agreement with the United
States Copyright Office, together with filings on Form UCC-1 made pursuant to
the Security Agreement, will create, as may be perfected by such filings and
recordation, a perfected security interest in the United States copyrights
covered by the Security Agreement.

 

(b)           The
security interests created in favor of the Collateral Agent, as Pledgee, for
the benefit of the Secured Creditors, under the Pledge Agreement constitute
perfected security interests in the Pledge Agreement Collateral described in
the Pledge Agreement, subject to no security interests of any other Person
except non-consensual Liens which constitute Permitted Liens and are junior in
priority to the Liens and security interests created by the Pledge
Agreement.  No filings or recordings are
required in order to perfect (or maintain the perfection or priority of) the
security interests created in the Pledge Agreement Collateral under the Pledge
Agreement other than with respect to that portion of the Pledge Agreement
Collateral constituting a “general intangible” under the UCC.

 

(c)           Each
Mortgage creates, as security for the obligations purported to be secured
thereby, a valid and enforceable perfected security interest in and mortgage
lien on the respective Mortgaged Property in favor of the Collateral Agent (or
such other trustee as may be required or desired under local law) for the
benefit of the Secured Creditors, superior and prior to the rights of all third
Persons (except that the security interest and mortgage lien created on such
Mortgaged Property may be subject to the Permitted Encumbrances related
thereto).

 

8.12  Properties.  (a) 
All Real Property owned or leased by the Borrower or any of its
Subsidiaries as of the Initial Borrowing Date, and the nature of the interest
therein, is correctly set forth on Schedule 8.12.  Each of the Borrower and each of its
Subsidiaries has good and indefeasible title to all material properties (and to
all buildings, fixtures and improvements located thereon) owned by it and a
valid leasehold interest in any material Real Property leased by it, including
all material property reflected in the most recent historical balance sheets
referred to in Section 8.05(a) (except as sold or otherwise disposed of
since the date of such

 

50

 

balance sheet in the ordinary course of business or as permitted by the
terms of this Agreement), free and clear of all Liens, other than Permitted
Liens.

 

(b)           The
assessed value (for real estate tax purposes) and/or the fair market value (as
determined in good faith by the Borrower) of each Real Property owned by the
Borrower and its Subsidiaries as of the Initial Borrowing Date and set forth on
Schedule 5.11 is set forth opposite such Real Property listed on Schedule 5.11,
and except as otherwise set forth on Schedule 10.02(xiii) and Schedule 10.01(iii)
no other Real Property owned by the Borrower or any of its Subsidiaries as of
the Initial Borrowing Date has a assessed value (for real estate tax purposes)
or, to the extent available, fair market value (as determined in good faith by
the Borrower), in either case, in excess of $750,000.

 

8.13  Capitalization.  On the Initial Borrowing Date, the authorized
capital of the Borrower consists of (i) 50,000,000 shares of common stock,
$1.66-2/3 par value per share, of which 12,489,773 shares are issued and
outstanding and 10,004 of which are issued and held in treasury and (ii)
500,000 shares of blank check preferred stock, none of which shares shall be
issued and outstanding.  All outstanding
shares of capital stock of the Borrower have been duly and validly issued and
are fully paid and non-assessable.  The
Borrower does not have outstanding any capital stock or other securities
convertible into or exchangeable for its capital stock or any rights to
subscribe for or to purchase, or any options for the purchase of, or any
agreement providing for the issuance (contingent or otherwise) of, or any
calls, commitments or claims of any character relating to, its capital stock,
except for options or warrants to purchase shares of the Borrower’s common
stock which may be issued from time to time pursuant to any employee and/or
director equity-based compensation plan.

 

8.14  Subsidiaries.  As of the Initial Borrowing Date, the
Borrower has no Subsidiaries other than those Subsidiaries listed on Schedule 8.14.  Schedule 8.14 correctly sets forth, as
of the Initial Borrowing Date, the percentage ownership (direct or indirect) of
the Borrower in each class of capital stock or other equity of its Subsidiaries
and also identifies the direct owner thereof.

 

8.15  Compliance
with Statutes, etc.  Each
of the Borrower and each of its Subsidiaries is in compliance with all
applicable statutes, regulations and orders of, and all applicable restrictions
imposed by, all governmental bodies, domestic or foreign, in respect of the
conduct of its business and the ownership of its property (including, without
limitation, applicable statutes, regulations, orders and restrictions relating
to environmental standards and controls), except such noncompliances as could
not, either individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.

 

8.16  Investment
Company Act.  Neither the
Borrower nor any of its Subsidiaries is an “investment company” or a company “controlled”
by an “investment company,” within the meaning of the Investment Company Act of
1940, as amended.

 

8.17  Public
Utility Holdings Company Act. 
Neither the Borrower nor any of its Subsidiaries is a “holding company,”
or a “subsidiary company” of a “holding company,” or an “affiliate” of a “holding
company” or of a “subsidiary company” of a “holding company” within the meaning
of the Public Utility Holdings Company Act of 1935, as amended.

 

51

 

8.18  Environmental
Matters.  (a)  Each of the Borrower and each of its
Subsidiaries is in compliance with all applicable Environmental Laws and the
requirements of any permits issued under such Environmental Laws.  There are no pending or, to the knowledge of
the Borrower threatened Environmental Claims against the Borrower or any of its
Subsidiaries or any Real Property at any time owned, leased or operated by the
Borrower or any of its Subsidiaries. 
There are no facts, circumstances, conditions or occurrences with
respect to the business or operations of the Borrower or any of its
Subsidiaries, or any Real Property at any time owned, leased or operated by the
Borrower or any of its Subsidiaries or, to the knowledge of the Borrower, any
property adjoining or adjacent to any such Real Property that could be
reasonably expected (i) to form the basis of an Environmental Claim against the
Borrower or any of its Subsidiaries or any Real Property owned, leased or
operated by the Borrower or any of its Subsidiaries or (ii) to cause any Real
Property owned, leased or operated by the Borrower or any of its Subsidiaries
to be subject to any restrictions on the ownership, lease, occupancy or
transferability of such Real Property by the Borrower or any of its
Subsidiaries under any applicable Environmental Law.

 

(b)           Hazardous
Materials have not at any time been generated, used, treated or stored on, or
transported to or from, or Released on or from, any Real Property at any time
owned, leased or operated by the Borrower or any of its Subsidiaries or to the
knowledge of the Borrower, any property adjoining or adjacent to any such Real
Property, where such generation, use, treatment, storage, transportation or
Release has violated or could be reasonably expected to violate any applicable
Environmental Law or give rise to an Environmental Claim.

 

(c)           Notwithstanding
anything to the contrary in this Section 8.18, the representations and
warranties made in this Section 8.18 shall not be untrue unless the effect
of any or all conditions, violations, claims, restrictions, failures and
noncompliances of the types described above could, either individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect.

 

8.19  Employment
and Labor Relations.  Neither the
Borrower nor any of its Subsidiaries is engaged in any unfair labor practice
that could reasonably be expected, either individually or in the aggregate, to
have a Material Adverse Effect.  There is
(i) no unfair labor practice complaint pending against the Borrower or any of
its Subsidiaries, or, to the knowledge of the Borrower, threatened against any
of them, before the National Labor Relations Board, and no grievance or
arbitration proceeding arising out of or under any collective bargaining
agreement is so pending against the Borrower or any of its Subsidiaries or, to
the knowledge of the Borrower, threatened against any of them, (ii) no strike,
labor dispute, slowdown or stoppage is pending against the Borrower or any of
its Subsidiaries or, to the knowledge of the Borrower, threatened against the
Borrower or any of its Subsidiaries, (iii) no union representation question is
in existence with respect to the employees of the Borrower or any of its
Subsidiaries, (iv) no equal employment opportunity charges or other claims of
employment discrimination are pending or, to the Borrower’s knowledge,
threatened against the Borrower or any of its Subsidiaries and (v) to the
knowledge of the Borrower, no wage and hour department investigation has been
made of the Borrower or any of its Subsidiaries, except (with respect to any
matter specified in clause (i), (ii), (iii), (iv) or (v) above, either
individually or in the aggregate) such as could not reasonably be expected to
have a Material Adverse Effect.

 

52

 

8.20  Intellectual
Property, etc.  Each of
the Borrower and each of its Subsidiaries owns or has the right to use all the
patents, trademarks, permits, domain names, service marks, trade names,
copyrights, licenses, franchises, inventions, trade secrets, proprietary
information and know-how of any type, whether or not written (including, but
not limited to, rights in computer programs and databases) and formulas, or
rights with respect to the foregoing, and has obtained assignments of all
leases, licenses and other rights of whatever nature, necessary for the present
conduct of its business, without any known conflict with the rights of others
which, or the failure to obtain which, as the case may be, could reasonably be
expected, either individually or in the aggregate, to have a Material Adverse
Effect.

 

8.21  Indebtedness.  Schedule 8.21 sets forth a true and
complete list of all Indebtedness of the Borrower and its Subsidiaries as of
the Initial Borrowing Date and which is to remain outstanding after the Bank
Refinancing and the other transactions contemplated hereby (other than (1)
Contingent Obligations not supporting any Indebtedness of the type described in
clause (i), (ii), (iv), (v) or (vii) of the definition thereof, (2) the
Existing Senior Subordinated Notes, (3) the Loans and (4) the Letters of
Credit), in each case showing the aggregate principal amount thereof and the
name of the respective borrower and lender and any Credit Party or any of its
Subsidiaries which directly or indirectly guarantees such Indebtedness.

 

8.22  Insurance.  Schedule 8.22 sets forth a true and
complete listing of all insurance maintained by the Borrower and its
Subsidiaries as of the Initial Borrowing Date, with the amounts insured (and
any deductibles) set forth therein.

 

SECTION 9.  Affirmative Covenants.  The Borrower hereby covenants and agrees that
on and after the Effective Date and until the Total Commitment and all Letters
of Credit have terminated and the Loans, Notes and Unpaid Drawings (in each
case together with interest thereon), Fees and all other Obligations (other
than indemnities described in Section 14.13 which are not then due and
payable) incurred hereunder and thereunder, are paid in full:

 

9.01  Information
Covenants.  The Borrower will
furnish to each Lender:

 

(a)           Quarterly
Financial Statements.  Within 40 days
(or such shorter period as may be required by the SEC for the filing of
quarterly reports on Form 10-Q by Persons subject to Section 13(a) or
15(d) of the Securities Exchange Act) after the close of each of the first
three quarterly accounting periods in each fiscal year of the Borrower, (i) the
consolidated balance sheet of the Borrower and its Subsidiaries as at the end
of such quarterly accounting period, (ii) the related consolidated statements
of income and retained earnings and statement of cash flows for such quarterly
accounting period and for the elapsed portion of the fiscal year ended with the
last day of such quarterly accounting period, (iii) statements of the Borrower’s
and its Subsidiaries’ consolidated and consolidating revenues, profits and
Consolidated EBITDA for each of its operating segments (i.e., food
distribution, MDV and retail segments), in each case, for such quarterly
accounting period and for the elapsed portion of the fiscal year ended with the
last day of such quarterly accounting period, (iv) a schedule containing a
summary of same store sales growth (expressed as a percentage) for such
quarterly accounting period and for the elapsed portion of the fiscal year
ended with the last day of such quarterly accounting period, in each case in
respect of preceding clauses (i), (ii) and (iii) setting forth comparative
figures for the corresponding quarterly accounting period in the prior fiscal
year and, except in respect of 

 

53

 

preceding clause (iii), comparable budgeted figures for such quarterly
accounting period as set forth in the respective budget delivered pursuant to Section 9.01(d),
all of which shall be certified by the chief financial officer of the Borrower
that they fairly present in all material respects in accordance with generally
accepted accounting principles the financial condition of the Borrower and its
Subsidiaries as of the dates indicated and the results of their operations for
the periods indicated, subject to normal year-end audit adjustments and the
absence of footnotes, and (v) management’s discussion and analysis of the
important operational and financial developments during such quarterly
accounting period.

 

(b)           Annual
Financial Statements.  Within 75 days
(or such shorter period as may be required by the SEC for the filing of annual
reports on Form 10-K by Persons subject to Section 13(a) or 15(d) of the
Securities Exchange Act) after the close of each fiscal year of the Borrower
(i) the consolidated balance sheet of the Borrower and its Subsidiaries as at
the end of such fiscal year and the related consolidated statements of income
and retained earnings and statement of cash flows for such fiscal year setting
forth comparative figures for the preceding fiscal year and certified (without
the inclusion of any “going concern” qualification) by Ernst & Young LLP or
such other independent certified public accountants of recognized national
standing reasonably acceptable to the Administrative Agent, together with a report
of such accounting firm stating that in the course of its regular audit of the
financial statements of the Borrower and its Subsidiaries, which audit was
conducted in accordance with the standards of the Public Company Accounting
Oversight Board (United States), such accounting firm obtained no knowledge of
any Default or any Event of Default which has occurred and is continuing or, if
in the opinion of such accounting firm such a Default or an Event of Default
has occurred and is continuing, a statement as to the nature thereof, (ii)
statements of the Borrower’s and its Subsidiaries’ consolidated and
consolidating revenues, profits and Consolidated EBITDA for each of its
operating segments (i.e., food distribution, MDV and retail segments) for such
fiscal year and setting forth comparative figures for the preceding fiscal
year, (iii) a schedule containing a summary of same store sales growth
(expressed as a percentage) for such fiscal year and setting forth comparative
figures for the preceding fiscal year, and (iv) management’s discussion and
analysis of the important operational and financial developments during such
fiscal year.

 

(c)           Management
Letters.  Promptly after the Borrower’s
or any of its Subsidiaries’ receipt thereof, a copy of any final “management
letter” received from its certified public accountants and management’s
response thereto.

 

(d)           Budgets.  No later than five days following the
approval thereof by the Board of Directors of the Borrower, but in any event no
later than 60 days following the first day of each fiscal year of the Borrower
(commencing with its fiscal year commencing on or about January 1, 2005),
a budget in form consistent with past practices and otherwise reasonably
satisfactory to the Administrative Agent (including budgeted statements of
income, sources and uses of cash and balance sheets for the Borrower and its
Subsidiaries on a consolidated basis prepared by the Borrower (i) for each
quarter of such fiscal year prepared in detail and (ii) for the five
immediately succeeding fiscal years (or, if earlier, the latest Maturity Date
then in effect) prepared in summary form, in each case setting forth, with
appropriate discussion, the principal assumptions upon which such budgets are
based.

 

54

 

(e)           Officer’s
Certificates, etc.  At the time of
the delivery of the financial statements provided for in Sections 9.01(a) and
(b), a compliance certificate from the chief financial officer of the Borrower
in the form of Exhibit L certifying on behalf of the Borrower that, to the best
of such officer’s knowledge after due inquiry, no Default or Event of Default
has occurred and is continuing or, if any Default or any Event of Default has
occurred and is continuing, specifying the nature and extent thereof, which
certificate shall:

 

(i) set forth in reasonable detail the calculations
required to establish whether the Borrower and its Subsidiaries were in
compliance with the provisions of Sections 4.02(d), 4.02(e), 10.01 through
10.05, inclusive, 10.07 and with the Financial Covenants, at the end of such
fiscal quarter or year, as the case may be;

 

(ii) certify (A) that there have been no changes to
Annexes A through J of the Security Agreement and Annexes A through G of the
Pledge Agreement, in each case since the Initial Borrowing Date or, if later,
since the date of the most recent certificate delivered pursuant to this Section 9.01(e),
or (B) if there have been any such changes, a list in reasonable detail of such
changes and a certification that the Borrower and its Subsidiaries have taken
all action required by the relevant Security Documents as may be necessary as a
result of such changes so that all security interests purported to be created
pursuant to such Security Documents continue to be fully perfected (to the
extent required by the Security Documents);

 

(iii) set forth a schedule of all loans,
guarantees and advances made by the Borrower and its Subsidiaries to their
respective customers pursuant to Section 10.04(viii) or otherwise
described in Schedule 8.21 and which are outstanding at the end of the
fiscal quarter of the year, as the case may be, in respect of which such
financial statements are then being delivered, which schedule shall set
forth for each such loan or advance (w) the amount of such loan or advance, (x)
the obligee in respect thereto, (y) each guarantor, if any, of the obligations
thereunder and (z) any and all assets pledged to any Credit Party as security
for the repayment of such loan or advance;

 

(iv) in the event that any assets pledged as described
in preceding clause (iii)(z) consist of Notes, Instruments and/or Certificated
Securities (in each case, as defined in the Pledge Agreement), certify that the
Borrower and the other Credit Parties have pledged, and delivered for pledge,
all such Notes, Instruments and Certificated Securities to the Collateral Agent
for the benefit of the Secured Creditors, in each case to the extent required
by the Pledge Agreement;

 

(v)           set forth
a schedule of (x) any and all Real Property in which the Borrower or any
of its Subsidiaries has acquired a fee interest during the immediately
preceding fiscal quarter and any and all new retail stores opened by the
Borrower or any of its Subsidiaries during the immediately preceding fiscal
quarter and located on Real Property owned by the Borrower or one of its
Subsidiaries, and (y) the assessed value (for real estate tax purposes) and, if
available, the fair market value (as determined by the Borrower in good faith)
of each such Real Property so acquired or on which such newly opened retail
store is located; and

 

55

 

 

(vi)  in the
case of any compliance certificates delivered with the financial statements
provided for in Section 9.01(b), set forth the amount of (and the
calculations required to establish) Excess Cash Flow for the respective Excess
Cash Payment Period.

 

(f)                                    Notice of
Default, Litigation and Material Adverse Effect.  Promptly, and in any event within three
Business Days after any executive officer of the Borrower or any of its
Subsidiaries obtains knowledge thereof, notice of (i) the occurrence of any event
which constitutes a Default or an Event of Default, (ii) any litigation or
governmental investigation or proceeding pending against the Borrower or any of
its Subsidiaries (x) which, either individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect or (y) with respect to
any Credit Document, or (iii) any other event, change or circumstance that has
had, or could reasonably be expected to have, a Material Adverse Effect.

 

(g)                                 Other Reports and
Filings.  (i)  Promptly after the filing or delivery
thereof, copies of all financial information, proxy materials and reports, if
any, which the Borrower or any of its Subsidiaries shall publicly file with the
Securities and Exchange Commission or any successor thereto (the “SEC”) or
deliver to holders (or any trustee, agent or other representative therefor) in
respect of any Indebtedness or commitments therefor (in each case, in excess of
an initial aggregate principal amount exceeding $5,000,000) pursuant to the
terms of the documentation governing such Indebtedness.

 

(ii)                                  On or prior to the dates by which the
Borrower is required to file annual reports, quarterly reports and other
documents with the SEC pursuant to Section 13(a) or 15(d) of the
Securities Exchange Act, or any successor provision thereto, copies of such
reports and documents as filed with the SEC; provided that if at any
time the Borrower is no longer subject to such provisions, it shall continue to
provide to each Lender (and, to the extent permitted by SEC practice and
applicable law and regulations, file with the SEC) copies of such reports and
documents on or prior to the dates it would be required to file such reports
and documents with the SEC if it were then subject to such provisions.

 

(h)                                 Environmental Matters.  Promptly after any officer of the Borrower or
any of its Subsidiaries obtains knowledge thereof, notice of one or more of the
following environmental matters to the extent that such environmental matters,
either individually or when aggregated with all other such environmental
matters, could reasonably be expected to have a Material Adverse Effect:

 

(i)                                     any pending or threatened Environmental
Claim against the Borrower or any of its Subsidiaries or any Real Property
owned, leased or operated by the Borrower or any of its Subsidiaries;

 

(ii)                                  any condition or occurrence on or arising
from any Real Property owned, leased or operated by the Borrower or any of its
Subsidiaries that (a) results in noncompliance by the Borrower or any of its
Subsidiaries with any applicable Environmental Law or (b) could reasonably be
expected to form the basis of an Environmental Claim against the Borrower or
any of its Subsidiaries or any such Real Property;

 

56

 

(iii)                               any condition or occurrence on any Real
Property owned, leased or operated by the Borrower or any of its Subsidiaries
that could reasonably be expected to cause such Real Property to be subject to
any restrictions on the ownership, lease, occupancy, use or transferability by
the Borrower or any of its Subsidiaries of such Real Property under any
Environmental Law; and

 

(iv)                              the taking of any removal or remedial
action in response to the actual or alleged presence of any Hazardous Material
on any Real Property owned, leased or operated by the Borrower or any of its
Subsidiaries as required by any Environmental Law or any governmental or other
administrative agency; provided that in any event the Borrower shall
deliver to each Lender all notices received by the Borrower or any of its
Subsidiaries from any government or governmental agency under, or pursuant to,
CERCLA which identify the Borrower or any of its Subsidiaries as potentially
responsible parties for remediation costs or which otherwise notify the Borrower
or any of its Subsidiaries of potential liability under CERCLA.

 

All such notices shall
describe in reasonable detail the nature of the claim, investigation,
condition, occurrence or removal or remedial action and the Borrower’s or such
Subsidiary’s response thereto.`

 

(i)                                     Notice of
Default Under Certain Leases.  To the
extent the Borrower shall not have delivered a fully executed landlord waiver
for any Real Property set forth on Schedule 9.18 where a distribution
center of the Borrower or any of its Subsidiaries is located, the Borrower
shall promptly notify the Administrative Agent of the occurrence of any payment
or other material default by the Borrower or any of its Subsidiaries of any
obligations as tenant under such Real Property.

 

(j)                                     Other Information.  From time to time, such other information or
documents (financial or otherwise) with respect to the Borrower or any of its
Subsidiaries as any Agent may reasonably request.

 

9.02  Books, Records
and Inspections; Annual Meetings.  (a)  The Borrower will, and will cause each of its
Subsidiaries to, keep proper books of record and accounts in which full, true
and correct entries in conformity with generally accepted accounting principles
and all requirements of law shall be made of all dealings and transactions in
relation to its business and activities. 
The Borrower will, and will cause each of its Subsidiaries to, permit
officers and designated representatives of any Agent or the Required Lenders to
visit and inspect, under guidance of officers of the Borrower or such
Subsidiary, any of the properties of the Borrower or such Subsidiary, and to
examine the books of account of the Borrower or such Subsidiary and discuss the
affairs, finances and accounts of the Borrower or such Subsidiary with, and be
advised as to the same by, its and their officers and independent accountants,
(x) at any time a Default or Event of Default is in existence, upon prior
notice and at such times and intervals and to such extent as such Agent or the
Required Lenders may request and (y) at all other times, upon reasonable prior
notice and at such reasonable times and intervals (not to exceed one time per
calendar year), and to such reasonable extent as such Agent or the Required
Lenders may reasonably request.

 

57

 

(b)                                 At a date to be mutually agreed upon
between the Administrative Agent and the Borrower occurring on or prior to the
120th day after the close of each fiscal year of the Borrower, the Borrower
will, at the request of the Administrative Agent, hold a meeting with all of
the Lenders which are available to attend such meeting (either in person or by
teleconference or other similar means), at which meeting will be reviewed the
financial results of the Borrower and its Subsidiaries for the previous fiscal
year and the budgets presented for the then current fiscal year of the
Borrower.

 

9.03  Insurance.  (a) 
The Borrower will, and will cause each of its Subsidiaries (other than
Existing Non-Material Subsidiaries) to (i) maintain, with financially sound and
reputable insurance companies, insurance on all its property in at least such
amounts and against at least such risks as is consistent and in accordance with
industry practice and (ii) furnish to the Administrative Agent and each of the
Lenders, upon request, full information as to the insurance carried.  Such insurance shall include physical damage
insurance on all real and personal property (whether now owned or hereafter
acquired) on an all risk basis and business interruption insurance.  The provisions of this Section 9.03
shall be deemed supplemental to, but not duplicative of, the provisions of any
Security Documents that require the maintenance of insurance.

 

(b)                                 The Borrower will, and will cause each
Subsidiary Guarantor to, at all times keep the respective property of the
Borrower and each Subsidiary Guarantor insured in favor of the Collateral
Agent, and all policies or certificates with respect to such insurance (and any
other insurance maintained by, or on behalf of, the Borrower or any Subsidiary
Guarantor) (i) shall be endorsed to the Collateral Agent’s satisfaction for the
benefit of the Collateral Agent (including, without limitation, by naming the
Collateral Agent as certificate holder, mortgagee and loss payee with respect
to real property, certificate holder and loss payee with respect to personal
property, additional insured with respect to general liability and umbrella
liability coverage and certificate holder with respect to workers’ compensation
insurance), (ii) shall state that such insurance policies shall not be canceled
or materially changed without at least 30 days’ prior written notice thereof by
the respective insurer to the Collateral Agent and (iii) shall be deposited
with the Collateral Agent (or copies thereof shall be deposited with the
Collateral Agent).

 

(c)                                  If the Borrower or any of its
Subsidiaries (other than Existing Non-Material Subsidiaries) shall fail to
maintain all insurance in accordance with this Section 9.03, or if the
Borrower or any of its Subsidiaries shall fail to so name the Collateral Agent
as an additional insured, mortgagee or loss payee, as the case may be, or so
deposit all certificates (or copies thereof) with respect thereto, the
Administrative Agent and/or the Collateral Agent shall have the right (but
shall be under no obligation), upon five Business Days notice to the Borrower,
to procure such insurance and take any such other aforementioned action, and
the Credit Parties agree jointly and severally to reimburse the Administrative
Agent or the Collateral Agent, as the case may be, for all costs and expenses
of procuring such insurance and taking any such other aforementioned action.

 

9.04  Existence;
Franchises.  The Borrower will, and
will cause each of its Subsidiaries (other than Existing Non-Material
Subsidiaries) to, do or cause to be done, all things necessary to preserve and
keep in full force and effect its existence and its material rights, 

 

58

 

franchises, licenses, permits, copyrights, trademarks and patents; provided,
however, that nothing in this Section 9.04 shall prevent (i) sales
of assets and other transactions by the Borrower or any of its Subsidiaries in
accordance with Section 10.02 or (ii) the withdrawal by the Borrower or
any of its Subsidiaries of its qualification as a foreign corporation,
partnership or limited liability company, as the case may be, in any
jurisdiction where such withdrawal could not, either individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

 

9.05  Compliance
with Statutes, etc.  The Borrower
will, and will cause each of the other Credit Parties to, comply with all
applicable statutes, regulations and orders of, and all applicable restrictions
imposed by, all governmental bodies, domestic or foreign, in respect of the
conduct of its business and the ownership of its property (including applicable
statutes, regulations, orders and restrictions relating to environmental
standards and controls), except such noncompliances as could not, either
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

 

9.06  Compliance
with Environmental Laws.  (a)  The Borrower will comply, and will cause each
of its Subsidiaries to comply, with all Environmental Laws and permits
applicable to, or required by, the ownership, lease or use of its Real Property
now or hereafter owned, leased or operated by the Borrower or any of its
Subsidiaries, except such noncompliances as could not, either individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect, and
will promptly pay or cause to be paid all costs and expenses incurred in
connection with such compliance, and will keep or cause to be kept all such Real
Property free and clear of any Liens imposed pursuant to such Environmental
Laws.  Neither the Borrower nor any of
its Subsidiaries will generate, use, treat, store, Release or dispose of, or
permit the generation, use, treatment, storage, Release or disposal of
Hazardous Materials on any Real Property now or hereafter owned, leased or
operated by the Borrower or any of its Subsidiaries, or transport or permit the
transportation of Hazardous Materials to or from any such Real Property, except
for Hazardous Materials generated, used, treated, stored, Released or disposed
of at any such Real Properties in compliance in all material respects with all
applicable Environmental Laws and as required in connection with the normal
operation, use and maintenance of the business or operations of the Borrower or
any of its Subsidiaries.

 

(b)                                 (i) After the receipt by the
Administrative Agent or any Lender of any notice of the type described in Section 9.01(f),
(ii) at any time that the Borrower or any of its Subsidiaries are not in
compliance with Section 9.06(a) or (iii) at any time when an Event of
Default is in existence, the Borrower will provide, at its sole expense and at
the request of the Administrative Agent or the Required Lenders, an
environmental site assessment report concerning (x) in the case of preceding
clauses (i) and (ii), the specific parcel of Real Property referenced in such
notice or the subject of such non-compliance and (y) in the case of preceding
clause (iii), any Real Property owned, leased or operated by the Borrower or
any of its Subsidiaries, prepared by an environmental consulting firm
reasonably acceptable to the Administrative Agent, indicating the presence or
absence of Hazardous Materials and the potential cost of any removal or remedial
action in connection with such Hazardous Materials on such Real Property.  If the Borrower fails to provide the same
within 30 days after such request was made, the Administrative Agent or
Required Lenders, as the case may be, may order the same, the cost of which
shall be borne by the Borrower, and the Borrower shall grant and hereby grants
to the Administrative Agent and the Lenders and their respective agents access
to such 

 

59

 

Real Property and specifically grants the Administrative Agent and the
Lenders an irrevocable non-exclusive license, subject to the rights of tenants,
to undertake such an assessment at any reasonable time upon reasonable notice
to the Borrower, all at the sole expense of the Borrower.

 

9.07  ERISA.  (a)  As
soon as possible and, in any event, within fifteen (15) days after the
Borrower, any Subsidiary of the Borrower or any ERISA Affiliate knows or has
reason to know of the occurrence of any of the following, the Borrower will deliver
to the Administrative Agent a certificate of the chief financial officer of the
Borrower setting forth the full details as to such occurrence and the action,
if any, that the Borrower, such Subsidiary or such ERISA Affiliate is required
or proposes to take, together with any notices received by the Borrower, such
Subsidiary or such ERISA Affiliate from the PBGC or any other government
agency, or a Plan participant, and on the date any notice relating to such
occurrence must be given or filed by the Borrower, such Subsidiary, the Plan
administrator or such ERISA Affiliate to or with the PBGC or any other
governmental agency, or a Plan participant, the Borrower will deliver to the
Administrative Agent a copy of such notice with respect thereto:

 

(i)                                     that a Reportable Event has occurred;

 

(ii)                                  that a contributing sponsor (as defined
in Section 4001(a)(13) of ERISA) of a Plan subject to Title IV of ERISA is
subject to the advance reporting requirement of PBGC Regulation Section 4043.61
(without regard to subparagraph (b)(1) thereof), and an event described in subsection .62,
..63, .64, .65, .66, .67 or .68 of PBGC Regulation Section 4043 is
reasonably expected to occur with respect to such Plan within the following 30
days except to the extent reporting under such subsections of PBGC Regulation Section 4043
has been waived by the PBGC;

 

(iii)                               that an accumulated funding deficiency, within the
meaning of Section 412 of the Code or Section 302 of ERISA, has been
incurred or an application may be or has been made for a waiver or modification
of the minimum funding standard (including any required installment payments)
or an extension of any amortization period under Section 412 of the Code
or Section 303 or 304 of ERISA with respect to a Plan;

 

(iv)                              that any contribution required to be made
with respect to a Plan subject to Title IV of ERISA or Section 412 of the
Code or Section 302 of ERISA or Foreign Pension Plan has not been timely
made (for this purpose, any quarterly contribution pursuant to Section 412(m)
of the Code or Section 302(e) of ERISA that is made within 30 days after
the date on which it is due will be deemed to have been timely made);

 

(v)                                 that a Plan has been or is reasonably
expected to be terminated, reorganized, partitioned or declared insolvent under
Title IV of ERISA;

 

(vi)                              that a Plan subject to Title IV of ERISA
(other than any Plan that is a multiemployer plan) has an Unfunded Current
Liability which, when added to the aggregate amount of Unfunded Current
Liabilities with respect to all other Plans subject to Title IV of ERISA could
reasonably be expected to have a Material Adverse Effect;

 

(vii)                           that proceedings may be or have been or are reasonably
expected to be instituted pursuant to Section 4042 of ERISA to terminate
or appoint a trustee to 

 

60

 

administer a Plan which is subject to Title
IV of ERISA; that a proceeding has been instituted pursuant to Section 515
of ERISA to collect a delinquent contribution to a Plan;

 

(ix)                                that the Borrower, any Subsidiary of the
Borrower or any ERISA Affiliate would reasonably be expected to incur any
liability (including any indirect, contingent, or secondary liability) to or on
account of the termination of or withdrawal from a Plan under Section 4062,
4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or with respect to a Plan under Section 401(a)(29),
4971, 4975 or 4980 of the Code or Section 409, 502(i) or 502(l) of ERISA
or with respect to a group health plan (as defined in Section 607(1) of
ERISA or Section 4980B(g)(2) of the Code) under Section 4980B of the
Code, except to the extent such liability under Section 4980B of the Code
would not be material; or

 

(x)                                   that the Borrower or any Subsidiary of
the Borrower may incur any increase in liability for retiree benefits pursuant
to any employee welfare benefit plan (as defined in Section 3(1) of ERISA)
that provides benefits to retired employees or other former employees (other
than as required by the severance pay Plans of the Borrower or any of its
Subsidiaries or Section 601 of ERISA or state insurance continuation laws
not preempted by ERISA) above that reflected in the Borrower’s most recent
audited financial statements that could reasonably be expected to result in a
Material Adverse Effect.

 

(b)                                 The Borrower will deliver to the
Administrative Agent copies of any records, documents or other information that
must be furnished to the PBGC with respect to any Plan pursuant to Section 4010
of ERISA.  At the request of any Lender,
the Borrower will also deliver to such Lender a complete copy of the annual
report (on Internal Revenue Service Form 5500-series) of each Plan (including,
to the extent required, the related financial and actuarial statements and
opinions and other supporting statements, certifications, schedules and
information) required to be filed with the Internal Revenue Service.  In addition, any material notices received by
the Borrower, any Subsidiary of the Borrower or any ERISA Affiliate from any
governmental agency with respect to any Foreign Pension Plan or received from
any governmental agency or plan administrator or sponsor or trustee with
respect to any multiemployer plan (as defined in Section 4001(a)(3) of
ERISA), shall be delivered to the Administrative Agent no later than fifteen
(15) days after such notice has been received by the Borrower, the respective
Subsidiary or the ERISA Affiliate, as applicable.  If, at any time after the Initial Borrowing
Date, the Borrower, any Subsidiary of the Borrower or any ERISA Affiliate
maintains, or contributes to (or incurs an obligation to contribute to), a
pension plan as defined in Section 3(2) of ERISA which is not set forth in
Part A of Schedule 9.07, as may be updated from time to time, then the
Borrower shall deliver to the Lenders an updated Part A of Schedule 9.07
as soon as possible and, in any event, within fifteen (15) days after the
Borrower, such Subsidiary or such ERISA Affiliate maintains, or contributes to
(or incurs an obligation to contribute to), such pension plan.  Such updated Part A of Schedule 9.07
shall supersede and replace the existing Part A of Schedule 9.07.  The Borrower and each of its applicable
Subsidiaries shall ensure that all Foreign Pension Plans administered by it or
into which it makes payments obtains or retains (as applicable) registered
status under and as required by applicable law and is administered in a timely
manner in all respects in compliance with all applicable laws except where the
failure to do any of the foregoing could not, either individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

 

61

 

9.08  End of Fiscal
Years; Fiscal Quarters.  The Borrower
will cause (i) each of its, and each of its Subsidiaries’, fiscal years to end
on the Saturday closest to December 31 of each year and (ii) each of its,
and each of its Subsidiaries’, fiscal quarters to end on dates consistent with
such fiscal year ends and the practices of the Borrower prior to the Effective
Date.

 

9.09  Performance
of Obligations.  The Borrower will,
and will cause each of its Subsidiaries to, perform all of its obligations
under the terms of each mortgage, indenture, security agreement, loan agreement
or credit agreement and each other material agreement, contract or instrument
by which it is bound, except such non-performances as could not, either
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

 

9.10  Payment of
Taxes.  The Borrower will pay and
discharge, and will cause each of its Subsidiaries to pay and discharge, all
material taxes, assessments and governmental charges or levies imposed upon it
or upon its income or profits or upon any properties belonging to it, prior to
the date on which penalties attach thereto, and all lawful claims for sums that
have become due and payable which, if unpaid, might become a Lien or charge
upon any properties of the Borrower or any of its Subsidiaries not otherwise
permitted under Section 10.01(i); provided that neither the Borrower
nor any of its Subsidiaries shall be required to pay any such tax, assessment,
charge, levy or claim which is being contested in good faith and by proper
proceedings if it has maintained adequate reserves with respect thereto in
accordance with generally accepted accounting principles.

 

9.11  Use of Proceeds.  The Borrower will use the proceeds of the
Loans only as provided in Section 8.08.

 

9.12  Additional
Security; Further Assurances; etc.  (a) 
The Borrower will, and will cause each of the other Credit Parties to,
grant to the Collateral Agent for the benefit of the Secured Creditors security
interests in such assets and properties (other than Real Property, except as
otherwise provided in clause (f) below) of the Borrower and the other Credit Parties
as are not covered by the original Security Documents and as may be requested
from by the Administrative Agent or the Required Lenders at any time when a
Default or Event of Default exists and is continuing (collectively, the “Additional
Security Documents”).  All such security
interests shall be granted pursuant to documentation reasonably satisfactory in
form and substance to the Administrative Agent and shall constitute valid and
enforceable perfected security interests superior to and prior to the rights of
all third Persons and subject to no other Liens except for Permitted
Liens.  The Additional Security Documents
or instruments related thereto shall have been duly recorded or filed in such
manner and in such places as are required by law to establish, perfect,
preserve and protect the Liens in favor of the Collateral Agent required to be
granted pursuant to the Additional Security Documents and all taxes, fees and
other charges payable in connection therewith shall have been paid in full.

 

(b)                                 The Borrower will, and will cause each of
its Subsidiaries to, at the expense of the Borrower, make, execute, endorse,
acknowledge, file and/or deliver to the Collateral Agent from time to time such
vouchers, invoices, schedules, confirmatory assignments, conveyances, financing
statements, transfer endorsements, powers of attorney, certificates, real
property surveys, reports, landlord waivers and other assurances or instruments

 

62

 

and take such further steps relating to the Collateral covered by any
of the Security Documents as the Collateral Agent may reasonably require in
order to keep itself reasonably informed with respect to such Collateral and/or
to perform its duties as Collateral Agent including, without limitation, to
preserve, protect, maintain, perfect or establish the priority of any Lien
created or purported to be created thereunder. 
Furthermore, the Borrower will, and will cause the other Credit Parties
to, deliver to the Collateral Agent such opinions of counsel, title insurance
and other related documents as may be reasonably requested by the
Administrative Agent to assure itself that the Borrower and its Subsidiaries
have complied with this Section 9.12.

 

(c)                                  If the Administrative Agent or the
Required Lenders reasonably determine that they are required by law or
regulation to have appraisals prepared in respect of the Real Property of the
Borrower and the other Credit Parties constituting Collateral, the Borrower
will, at its own expense, provide to the Administrative Agent appraisals which
satisfy the applicable requirements of the Real Estate Appraisal Reform
Amendments of the Financial Institution Reform, Recovery and Enforcement Act of
1989, as amended, and which appraisals shall otherwise be in form and substance
reasonably satisfactory to the Administrative Agent.

 

(d)                                 Each of the Borrower, each Agent and each
Lender acknowledge and agree that on the Initial Borrowing Date no action has
been taken to perfect the security interests created pursuant to the Security
Agreement in the Borrower’s and the other Credit Parties’ motor vehicles,
tractors or trailers (except to the extent that such perfection would occur
under relevant State law as a result of the filing of forms UCC-1 (or the
appropriate equivalent) under relevant State law), provided that upon
the written request of the Administrative Agent or the Required Lenders at any
time when a Default or Event of Default exists and is continuing, the Borrower
will, and will cause each of the other Credit Parties to, take, at their
expense, all action (including, without limitation, notations on certificates
of title under applicable State law) as may be necessary or, in the reasonable
opinion of the Collateral Agent, desirable to perfect such security interests
in such motor vehicles, tractors and/or trailers such that all such security
interests are perfected within 60 days (or such later date as may be agreed to
by the Administrative Agent or the Required Lenders, as the case may be, in its
or their sole discretion) following the date of such written request.

 

(e)                                  Notwithstanding anything to the contrary
contained in this Section 9.12, no Foreign Subsidiary of the Borrower
shall be required to enter into any pledge agreement, security agreement or
guaranty described in this Section 9.12 except as required by such Section 9.13.

 

(f)                                    Within 60 days following the acquisition
of a fee interest in Real Property by, or the opening of a new retail store
located on any Real Property owned by, the Borrower or any Subsidiary
Guarantor, in either case having a assessed value (for real estate purposes)
or, if available, a fair market value (as determined in good faith by the
Borrower), whichever is greater, in excess of $750,000, the Borrower will, or
cause the respective Subsidiary Guarantor to, grant to the Collateral Agent for
the benefit of the Secured Creditors, a Mortgage on any such Real Property; it
being understood and agreed that the aggregate assessed value (for real estate
purposes) or, if available, the aggregate fair market value of all Real
Property acquired (or on which a new retail store has been opened), after the
Effective Date and not required to be subject to a Mortgage by virtue of the
aforementioned dollar limitation shall not exceed $5,000,000.  All 

 

63

 

such Mortgages shall be granted pursuant to documentation reasonably
satisfactory in form and substance to the Collateral Agent, and shall
constitute a valid and enforceable perfected mortgage Lien on the respective
Real Property superior to and prior to the rights of all third Persons and
subject to no other Liens except for Permitted Encumbrances.  Such Mortgages and all instruments related
thereto shall have been duly recorded or filed in such manner and in such
places as are required by law to establish, perfect, preserve and protect the
Liens in favor of the Collateral Agent required to be granted pursuant to such
Mortgages and all taxes, fees and other charges payable in connection therewith
shall have been paid in full.  In
addition, the Borrower shall deliver, or cause to be delivered, those items
described in Sections 5.03(iii) and 5.11(ii), (iii), (iv), (v), (vi), (vii) and
(viii) (as applicable) with respect to the Real Property to be so mortgaged.

 

(g)                                 Within 60 days following the repayment of
the respective Indebtedness (except to the extent such respective Indebtedness
is repaid with refinancing or replacement Indebtedness in a like principal
amount (plus any accrued and unpaid interest thereon and any premium payable
with respect thereto)) secured by the relevant Real Property designated as “Real
Property Subject to Liens” in Schedule 10.01(iii) and the release of such
mortgage Lien, the Borrower will, or cause the respective Subsidiary Guarantor
to, grant to the Collateral Agent for the benefit of the Secured Creditors, a
Mortgage on any such Real Property.  All
such Mortgages shall be granted pursuant to documentation reasonably satisfactory
in form and substance to the Collateral Agent and shall constitute a valid and
enforceable perfected mortgage Lien on the respective Real Property superior to
and prior to the rights of all third Persons and subject to no other Liens
except for Permitted Encumbrances.  Such
Mortgages and all instruments related thereto shall have been duly recorded or
filed in such manner and in such places as are required by law to establish,
perfect, preserve and protect the Liens in favor of the Collateral Agent
required to be granted pursuant to such Mortgages and all taxes, fees and other
charges payable in connection therewith shall have been paid in full.  In addition, the Borrower shall deliver, or
cause to be delivered, those items described in Sections 5.03(iii) and
5.11(ii), (iii), (iv), (v), (vi), (vii) and (viii) (as applicable) with respect
to the Real Property to be so mortgaged.

 

(h)                                 The Borrower agrees that each action
required by clauses (a) through (c) of this Section 9.12 shall be
completed as soon as possible, but in no event later than 60 days after such
action is requested to be taken by the Administrative Agent or the Required
Lenders; provided that, in no event will the Borrower or any of the
other Credit Parties be required to take any action, other than using
commercially reasonable efforts, to obtain consents or waivers from third
parties with respect to its compliance with this Section 9.12.

 

9.13  Foreign
Subsidiaries Security. 
If, following a change in the relevant sections of the Code or the
regulations, rules, rulings, notices or other official pronouncements issued or
promulgated thereunder, the Borrower does not within 30 days after a request
from the Administrative Agent or the Required Lenders deliver evidence, in form
and substance reasonably satisfactory to the Administrative Agent, with respect
to any Foreign Subsidiary of the Borrower which has not already had all of its
stock pledged pursuant to the Pledge Agreement that (i) a pledge of 66-2/3% or
more of the total combined voting power of all classes of capital stock of such
Foreign Subsidiary entitled to vote, (ii) the entering into by such Foreign
Subsidiary of a security agreement in substantially the form of the Security
Agreement and (iii) 

 

64

 

the entering into by such Foreign Subsidiary of a guaranty in
substantially the form of the Subsidiaries Guaranty, in any such case could
reasonably be expected to cause any undistributed earnings of such Foreign
Subsidiary as determined for Federal income tax purposes to be treated as a
deemed dividend to such Foreign Subsidiary’s United States parent for Federal
income tax purposes, then in the case of a failure to deliver the evidence
described in clause (i) above, that portion of such Foreign Subsidiary’s
outstanding capital stock not theretofore pledged pursuant to the Pledge
Agreement shall be promptly pledged to the Collateral Agent for the benefit of
the Secured Creditors pursuant to the Pledge Agreement (or another pledge
agreement in substantially similar form, if needed), and in the case of a
failure to deliver the evidence described in clause (ii) above, such Foreign
Subsidiary shall promptly execute and deliver the Security Agreement and Pledge
Agreement (or another security agreement or pledge agreement in substantially similar
form, if needed), granting the Collateral Agent for the benefit of the Secured
Creditors a security interest in all of such Foreign Subsidiary’s assets and
securing the obligations of the Borrower under the Credit Documents and under
any Interest Rate Protection Agreement or Other Hedging Agreement entered into
with a Secured Creditor and, in the event the Subsidiaries Guaranty shall have
been executed by such Foreign Subsidiary, the obligations of such Foreign
Subsidiary thereunder, and in the case of a failure to deliver the evidence
described in clause (iii) above, such Foreign Subsidiary shall promptly execute
and deliver the Subsidiaries Guaranty (or another guaranty in substantially
similar form, if needed), guaranteeing the obligations of the Borrower under
the Credit Documents and under any Interest Rate Protection Agreement or Other
Hedging Agreement entered into with a Secured Creditor, in each case to the
extent that the entering into of the Security Agreement, Pledge Agreement or
Subsidiaries Guaranty is permitted by the laws of the respective foreign
jurisdiction and with all documents delivered pursuant to this Section 9.13
to be in form and substance reasonably satisfactory to the Administrative
Agent.

 

9.14  Permitted
Acquisitions.  (a)  Subject to the provisions of this Section 9.14
and the requirements contained in the definition of Permitted Acquisition, the
Borrower and the Subsidiary Guarantors may from time to time effect Permitted
Acquisitions, so long as:

 

(i) no Default or Event of Default shall have occurred
and be continuing at the time of the consummation of the proposed Permitted
Acquisition or immediately after giving effect thereto;

 

(ii) the Borrower shall have given to the
Administrative Agent at least 10 Business Days’ prior written notice of any
Material Permitted Acquisition, which notice shall describe in reasonable
detail the principal terms and conditions of such Material Permitted
Acquisition;

 

(iii) in the case of any Material Permitted
Acquisition, calculations are made by the Borrower showing compliance with each
of the Financial Covenants for the respective Calculation Period on a Pro Forma Basis as if the respective Material
Permitted Acquisition (as well as all other Permitted Acquisitions theretofore
consummated after the first day of such Calculation Period) had occurred on the
first day of such Calculation Period;

 

65

 

(iv) in the case of any Material Permitted
Acquisition, based on good faith projections prepared by the Borrower for the
period from the date of the consummation of the respective Material Permitted
Acquisition to the date which is one year thereafter, the level of financial
performance measured by the Financial Covenants shall be better than or equal
to such level as would be required to provide that no Default or Event of
Default would exist under the Financial Covenants as compliance with such
Financial Covenants would be required through the date which is one year from
the date of the consummation of the respective Material Permitted Acquisition;

 

(v) all representations and warranties contained
herein and in the other Credit Documents shall be true and correct in all
material respects with the same effect as though such representations and warranties
had been made on and as of the date of such Permitted Acquisition (both before
and after giving effect thereto), unless stated to relate to a specific earlier
date, in which case such representations and warranties shall be true and
correct in all material respects as of such earlier date;

 

(vi) the Board of Directors of the Acquired Entity or
Business the subject of such Permitted Acquisition shall have approved the
consummation of such Permitted Acquisition;

 

(vii) the Aggregate Consideration for all Permitted
Acquisitions consummated during any fiscal year of the Borrower shall not, when
added to the aggregate fair market value of all assets (other than those in the
Borrower’s retail business) disposed of by the Borrower pursuant to Section 10.02(xvi),
exceed $100,000,000 (although the Aggregate Consideration in respect of
Permitted Acquisitions of any Acquired Entity or Business primarily owning or
consisting primarily of retail assets shall not exceed $50,000,000);

 

(viii) neither the Borrower nor any of its
Subsidiaries shall incur, issue or assume any Indebtedness in connection with
any Permitted Acquisition unless such Indebtedness is otherwise permitted
pursuant to Section 10.04(x);

 

(ix) immediately after giving effect to each Permitted
Acquisition (and all payments to be made in connection therewith, including for
this purpose (as if paid on the date of the consummation of the respective
Permitted Acquisition) the aggregate amount paid and reasonably expected to be
paid (based on good faith projections prepared by the Borrower) on or within
one year after the date of the consummation of the Permitted Acquisition
pursuant to any earn out, non-compete, consulting or deferred compensation or
purchase price adjustments or similar arrangements), the Total Unutilized
Revolving Loan Commitment (reduced by any payments not theretofore made but
which are required to be taken into account in accordance with the provisions
of the immediately preceding parenthetical) shall equal or exceed $25,000,000
(after giving effect to any Incremental Revolving Loan Commitments which become
effective simultaneously with such Permitted Acquisition); and

 

(x) the Borrower shall have delivered to the
Administrative Agent and each Lender a certificate executed by its chief financial
officer, certifying to the best of such officer’s knowledge, compliance with
the requirements of preceding clauses (i) through 

 

66

 

(ix), inclusive,
and containing the calculations (in reasonable detail) required by the
preceding clauses (iii), (iv), (vii), (viii) and (ix).

 

(b)                                 At the time of each Permitted Acquisition
involving the creation or acquisition of a Subsidiary, or the acquisition of
capital stock or other equity interest of any Person, the capital stock or
other equity interests thereof created or acquired in connection with such
Permitted Acquisition shall be pledged for the benefit of the Secured Creditors
pursuant to (and to the extent required by) the Pledge Agreement.

 

(c)                                  The Borrower will cause each Subsidiary
which is formed to effect, or is acquired pursuant to, a Permitted Acquisition
to comply with, and to execute and deliver, all of the documentation as and to
the extent required by, Sections 9.12 and 10.16, to the reasonable satisfaction
of the Administrative Agent.

 

(d)                                 The consummation of each Permitted
Acquisition shall be deemed to be a representation and warranty by the Borrower
that the certifications pursuant to this Section 9.14 are true and correct
and that all conditions thereto have been satisfied and that same is permitted
in accordance with the terms of this Agreement, which representation and
warranty shall be deemed to be a representation and warranty for all purposes
hereunder, including, without limitation, Sections 8 and 11.

 

9.15  Ownership
of Subsidiaries; etc. 
Except (i) for those Subsidiaries that on the Initial Borrowing Date are
not Wholly-Owned Subsidiaries of the Borrower (as indicated on Schedule 8.14),
(ii) for any Subsidiary in which all Investments therein by the Borrower and
its Subsidiaries have been justified pursuant to Section 10.05(xv) and
(iii) any non-Wholly-Owned Subsidiary acquired pursuant to a Permitted
Acquisition consummated in accordance with the terms hereof, each Credit Party
shall directly or indirectly own 100% of the Equity Interests of each of its
Subsidiaries.

 

9.16  Existing
Senior Subordinated Notes Redemption.  On the Redemption Date the Borrower shall (x)
redeem all of the Existing Senior Subordinated Notes outstanding at such time
pursuant to, and in accordance with the terms of, the Existing Senior
Subordinated Notes Documents and (y) pay all principal, of accrued and unpaid
interest on, and premiums (in an amount not to exceed $4,700,000) in respect
of, the Existing Senior Subordinated Notes.

 

(a)                                  On or as soon as practicable
following the Redemption Date (but in any event within 5 days of the Redemption
Date), the Administrative Agent shall have received evidence of the discharge
and termination of the Existing Senior Subordinated Notes (and all obligations
of the Borrower and its Subsidiaries under the Existing Senior Subordinated
Note Indenture) from the trustee under the Existing Senior Subordinated Notes
Indenture, which evidence shall be in form and substance satisfactory to the
Administrative Agent.

 

9.17  Interest
Rate Protection.  No later than
90 days following the Initial Borrowing Date, the Borrower will enter into (and
thereafter maintain) Interest Rate Protection Agreements mutually acceptable to
the Borrower and the Administrative Agent, having a term of at least three
years from the Initial Borrowing Date, ensuring that initially at least 50% of
the aggregate principal amount of all Indebtedness for borrowed money of the
Borrower and its 

 

67

 

Subsidiaries (after giving effect to the Refinancing and the other
transactions contemplated hereby) bears interest at a fixed rate and/or is
subject to such Interest Rate Protection Agreements for such three year period.

 

9.18  Landlord Waivers.
The Borrower and its Subsidiaries shall use commercially reasonable efforts to
obtain within 90 days after the Initial Borrowing Date fully executed landlord
waivers which shall cover the Real Property leased by the Borrower or any of its
Subsidiaries and/or bailee agreements in respect of those Leaseholds of the
Borrower or any of its Subsidiaries set forth on Schedule 9.18, each of
which landlord waivers and/or bailee agreements shall be in form and substance
reasonably satisfactory to the Collateral Agent.

 

SECTION 10.  Negative Covenants.  The Borrower hereby covenants and agrees that
on and after the Effective Date and until the Total Commitment and all Letters
of Credit have terminated and the Loans, Notes and Unpaid Drawings (in each
case, together with interest thereon), Fees and all other Obligations (other
than any indemnities described in Section 14.13 which are not then due and
payable) incurred hereunder and thereunder, are paid in full:

 

10.01  Liens.  The Borrower will not, and will not permit
any of its Subsidiaries to, create, incur, assume or suffer to exist any Lien
upon or with respect to any property or assets (real or personal, tangible or
intangible) of the Borrower or any of its Subsidiaries, whether now owned or hereafter
acquired, or sell any such property or assets subject to an understanding or
agreement, contingent or otherwise, to repurchase such property or assets
(including sales of accounts receivable with recourse to the Borrower or any of
its Subsidiaries), or assign any right to receive income or permit the filing
of any financing statement under the UCC or any other similar notice of Lien
under any similar recording or notice statute; provided that the
provisions of this Section 10.01 shall not prevent the creation,
incurrence, assumption or existence of the following (Liens described below are
herein referred to as “Permitted Liens”):

 

(i)                                     inchoate Liens for taxes, assessments or
governmental charges or levies not yet due or Liens for taxes, assessments or
governmental charges or levies being contested in good faith and by appropriate
proceedings for which adequate reserves have been established in accordance
with generally accepted accounting principles;

 

(ii)                                  Liens in respect of property or assets of
the Borrower or any of its Subsidiaries imposed by law, which were incurred in
the ordinary course of business and do not secure Indebtedness for borrowed
money, such as carriers’, warehousemen’s, materialmen’s and mechanics’ liens
and other similar Liens arising in the ordinary course of business, and (x)
which do not in the aggregate materially detract from the value of the Borrower’s
or such Subsidiary’s property or assets or materially impair the use thereof in
the operation of the business of the Borrower or such Subsidiary or (y) which
are being contested in good faith by appropriate proceedings, which proceedings
have the effect of preventing the forfeiture or sale of the property or assets
subject to any such Lien;

 

(iii)                               Liens in existence on the Initial
Borrowing Date which are listed, and the property subject thereto described, in
Schedule 10.01(iii) plus renewals, replacements and extensions of such
Liens; provided that (x) the aggregate principal amount of the
Indebtedness, if any, secured by such Liens does not increase from that amount 

 

68

 

outstanding at the
time of any such renewal, replacement or extension, (y) any such renewal,
replacement or extension does not encumber any additional assets or properties
of the Borrower or any of its Subsidiaries and (z) if Schedule 10.01(iii)
provides a date by which any such Lien must be released, the respective Lien
shall not be permitted to exist after such date;

 

(iv)                              Liens created pursuant to the Security Documents;

 

(v)                                 licenses, sublicenses, leases or
subleases granted to other Persons not materially interfering with the conduct
of the business of the Borrower or any of its Subsidiaries;

 

(vi)                              Liens upon assets of the Borrower or any
of its Subsidiaries subject to Capitalized Lease Obligations to the extent such
Capitalized Lease Obligations are permitted by Section 10.04(x), provided
that (x) such Liens only serve to secure the payment of Indebtedness arising
under such Capitalized Lease Obligation and (y) the Lien encumbering the asset
giving rise to the Capitalized Lease Obligation does not encumber any other
asset of the Borrower or any Subsidiary of the Borrower;

 

(vii)                           Liens placed upon equipment, machinery or
Real Property acquired by the Borrower or any of its Subsidiaries after the
Initial Borrowing Date and used in the ordinary course of business of the
Borrower or any of its Subsidiaries and placed at the time of the acquisition
thereof (or the construction of a new store or other capital improvements or
buildings thereon in the case of Real Property) by the Borrower or such
Subsidiary or within 90 days thereafter to secure Indebtedness incurred to pay
all or a portion of the purchase price thereof (or the construction of a new
store or other capital improvements or buildings thereon in the case of Real
Property) or to secure Indebtedness incurred solely for the purpose of
financing the acquisition of any such equipment, machinery or Real Property (or
the construction of a new store or other capital improvements or buildings
thereon in the case of Real Property) or extensions, renewals or replacements
of any of the foregoing for the same or a lesser amount, provided that
(x) the Indebtedness secured by such Liens is permitted by Section 10.04(x)
and (y) in all events, the Lien encumbering the equipment, machinery or Real
Property so acquired does not encumber any other asset of the Borrower or any
of its Subsidiaries;

 

(viii)                        easements, rights-of-way, restrictions,
encroachments and other similar charges or encumbrances, and minor title
deficiencies, in each case not securing Indebtedness and not materially
interfering with the conduct of the business of the Borrower or any of its
Subsidiaries;

 

(ix)                                Liens arising from precautionary UCC
financing statement filings regarding operating leases entered into by the
Borrower or any of its Subsidiaries in the ordinary course of business;

 

(x)                                   Liens arising out of the existence of
judgments or awards in respect of which the Borrower or any of its Subsidiaries
shall in good faith be prosecuting an appeal or proceedings for review and in
respect of which there shall have been secured a 

 

69

 

subsisting stay of
execution pending such appeal or proceedings, provided that the
aggregate amount of all cash and the fair market value of all other property
subject to such Liens does not exceed $10,000,000 (including penalties and
interest) at any time outstanding;

 

(xi)                                statutory and common law landlords’ liens
under leases to which the Borrower or any of its Subsidiaries is a party;

 

(xii)                             Liens (other than Liens imposed under
ERISA) incurred in the ordinary course of business in connection with workers
compensation claims, unemployment insurance and social security benefits;

 

(xiii)                          Liens (other than Liens imposed under
ERISA) securing the performance of bids, tenders, leases and contracts in the
ordinary course of business, statutory obligations, surety bonds, performance
bonds and other obligations of a like nature incurred in the ordinary course of
business and consistent with past practice (exclusive of obligations in respect
of the payment for borrowed money), provided that the aggregate amount
of all cash and the fair market value of all other property subject to all Liens
permitted by this clause (xiii) shall not at any time exceed $10,000,000;

 

(xiv)                         Permitted Encumbrances;

 

(xv)                            Liens on property or assets acquired
pursuant to a Permitted Acquisition, or on property or assets of a Subsidiary
of the Borrower in existence at the time such Subsidiary is acquired pursuant
to a Permitted Acquisition, provided that (x) any Indebtedness that is
secured by such Liens is permitted to exist under Section 10.04(x), and
(y) such Liens are not incurred in connection with, or in contemplation or
anticipation of, such Permitted Acquisition and do not attach to any other
asset of the Borrower or any of its Subsidiaries;

 

(xvi)                         Liens securing Indebtedness issued,
incurred or assumed in connection with any Permitted Acquisition so long as (i)
any such Indebtedness is permitted to exist under Section 10.04(x), (ii)
in no event shall the Lien securing such Indebtedness extend to (x) any assets
of the Borrower or any of its Subsidiaries other than the assets the subject of
the respective Permitted Acquisition financed (in whole or in part) with such
Indebtedness or (y) any Equity Interests of the Borrower or any of its
Subsidiaries, (iii) the fair market value of the assets subject to any such
Lien (as determined by the Borrower in good faith on the date of the incurrence
of the respective Indebtedness or, if later, the first date upon which such
assets become security therefor) shall not exceed 125% of the face or principal
amount of the Indebtedness with respect to which such assets are pledged as
security for the Borrower’s obligations thereunder;

 

(xvii)                      Liens consisting of setoff rights of
banks and other depositary institutions arising by operation of the law or
otherwise in the ordinary course of business with respect to accounts maintained
at such banks or depositary institutions, and other Liens on assets of the
Borrower and its Subsidiaries held by such bank or other depositary
institutions, in each case in connection with services provided by such banks
and other 

 

70

 

depositary
institutions; provided that no such Lien permitted under this clause (xvii)
shall secure any Indebtedness for borrowed money; and

 

(xviii)                   Liens
securing Indebtedness permitted under Section 10.04(x).

 

In connection with the
granting by the Borrower or any of its Subsidiaries of Liens of the type
described in clauses (vi), (vii), (xv) and (xvi) of this Section 10.01,
the Administrative Agent and the Collateral Agent shall be authorized to take
any actions deemed appropriate by it in connection therewith (including,
without limitation, by executing appropriate lien releases or lien
subordination agreements in favor of the holder or holders of such Liens, in
either case solely with respect to the item or items of equipment or other
assets subject to such Liens).

 

10.02  Consolidation,
Merger, Purchase or Sale of Assets, etc. 
The Borrower will not, and will not permit any of its Subsidiaries to,
wind up, liquidate or dissolve its affairs or enter into any transaction of
merger or consolidation, or convey, sell, lease or otherwise dispose of all or
any part of its property or assets, or enter into any sale-leaseback
transactions, or purchase or otherwise acquire (in one or a series of related
transactions) any part of the property or assets (other than purchases or other
acquisitions of inventory, materials, equipment and intangible assets, in each
case in the ordinary course of business) of any Person (or agree to do any of
the foregoing at any future time), except that:

 

(i)                                     Capital Expenditures by the Borrower or
any of its Subsidiaries shall be permitted to the extent not in violation of Section 10.07;

 

(ii)                                  each of the Borrower and its Subsidiaries
may make sales of inventory in the ordinary course of business;

 

(iii)                               each of the Borrower and its Subsidiaries
may sell obsolete, uneconomic or worn-out equipment, materials or other assets
(other than Real Property) in the ordinary course of business;

 

(iv)                              Investments may be made to the extent
permitted by Section 10.05;

 

(v)                                 the Borrower and its Subsidiaries may
sell assets (other than Equity Interests of any Subsidiary unless 100% of the
Equity Interests owned by the Borrower or such Subsidiary is so sold), so long
as (w) no Default or Event of Default then exists or would result therefrom,
(x) each such sale is in an arm’s-length transaction and the Borrower or the
respective Subsidiary receives at least fair market value (as determined in
good faith by the Borrower or such Subsidiary, as the case may be) therefor,
(y) the Net Sale Proceeds therefrom (if any) are applied and/or reinvested as
(and to the extent) required by Section 4.02(d) and (z) the aggregate
amount of the proceeds (taking the amount of cash and Cash Equivalents, and the
fair market value (as determined by the Borrower in good faith) of all other
consideration or, if higher in the case of any promissory notes received as
consideration, the principal or face amount thereof) received from all assets
sold pursuant to this clause (v) shall not exceed $5,000,000 in any fiscal year
of the Borrower;

 

71

 

(vi)                              each of the Borrower and its Subsidiaries
may, in the ordinary course of business, lease (as lessee) other than pursuant
to a Customer Lease Arrangement or license (as licensee) real or personal
property (so long as any such lease or license does not create a Capitalized
Lease Obligation except to the extent permitted by Section 10.04(x));

 

(vii)                           each of the Borrower and its Subsidiaries
may sell or discount, in each case without recourse and in the ordinary course
of business, accounts receivable arising in the ordinary course of business,
but only in connection with the compromise or collection thereof and not as
part of any financing transaction;

 

(viii)                        each of the Borrower and its Subsidiaries
may, in the ordinary course of business, grant licenses, sublicenses or leases
or subleases to other Persons not materially interfering with the conduct of
the business of the Borrower or any of its Subsidiaries, in each case so long
as no such grant (x) is pursuant to a Customer Lease Arrangement or (y)
otherwise adversely affects the Collateral Agent’s validity, perfection or
enforceability of the security interest in the asset or property subject
thereto;

 

(ix)                                the Borrower or any Subsidiary of the
Borrower may transfer assets to the Borrower or to any Subsidiary Guarantor, so
long as the security interests granted to the Collateral Agent for the benefit
of the Secured Creditors pursuant to the Security Documents in the assets so
transferred shall remain in full force and effect and perfected (to at least
the same extent as in effect immediately prior to such transfer);

 

(x)                                   any Subsidiary of the Borrower may merge
with and into, or be dissolved or liquidated into, the Borrower or any
Subsidiary Guarantor so long as (i) in the case of any such merger, dissolution
or liquidation involving the Borrower, the Borrower is the surviving
corporation of any such merger, dissolution or liquidation (it being understood
and agreed that the Borrower may not be liquidated or dissolved), (ii) in all
other cases, the respective Subsidiary Guarantor is the surviving corporation
of any such merger, dissolution or liquidation and (iii) in all cases, the
security interests granted to the Collateral Agent for the benefit of the
Secured Creditors pursuant to the Security Documents in the assets of such
Subsidiary shall remain in full force and effect and perfected (to at least the
same extent as in effect immediately prior to such merger, dissolution or
liquidation);

 

(xi)                                Permitted Acquisitions may be made to the
extent permitted by Section 9.14;

 

(xii)                             the Borrower and its Subsidiaries may
enter into Customer Lease Arrangements in accordance with the definition
thereof so long as the Consolidated Rental Expense attributable to all such
Customer Lease Arrangements (i.e., the portion of Consolidated Rental Expense
attributable to the properties leased by the Borrower and its Subsidiaries, and
then in turn subleased to customers, in each case without reducing such
Consolidated Rental Expense by any payments (sublease or otherwise) received by
the Borrower and its Subsidiaries pursuant to the subleases of such Real
Property) does not exceed $25,000,000 during any fiscal year of the Borrower;

 

72

 

(xiii)                          each of the Borrower and its Subsidiaries
may sell the closed retail stores and other Real Property set forth on Schedule 10.02(xiii)
so long as (x) 100% of the Net Sale Proceeds therefrom are applied and/or
reinvested as (and to the extent) required by Section 4.02(d) to repay
outstanding Revolving Loans (but not as a mandatory reduction to the Total
Revolving Loan Commitment) in accordance with Section 4.02(d) and (y) any
consideration therefor in the form of promissory notes shall, and any security
for the obligations therefor shall, be pledged to the Collateral Agent to the
extent required by the Pledge Agreement; and

 

(xiv)                         the Borrower and its Subsidiaries may
sell or otherwise dispose of (by way of merger (subject to the requirements of
clause (2) of the immediately succeeding parenthetical) or otherwise)
businesses and properties in the Borrower’s retail segment (including (1)
related goodwill and inventory and (2) Equity Interests of any Subsidiary of
the Borrower, so long as 100% of the Equity Interests of any such Subsidiary
that are owned by the Borrower and its Subsidiaries are so sold or otherwise
disposed), so long as (t) no Default or Event of Default then exists or would
result therefrom, (u) each such sale is in an arm’s-length transaction and the
Borrower or the respective Subsidiary receives at least fair market value (as
determined in good faith by the Borrower) therefor, (v) the consideration
therefor shall be cash or promissory notes received by the Borrower or the
respective Subsidiary, provided that any such consideration for any
inventory located in such stores which is in the form of promissory notes shall
be otherwise permitted under Section 10.05(xi) and shall, and any security
for the obligations therefor shall, be pledged to the Collateral Agent to the
extent required by the Pledge Agreement, (w) each promissory note issued by the
purchaser of such assets shall be guaranteed and secured on a basis consistent
with the Borrower’s customary procedures and its past practices, (x) the total
consideration (taking the amount of cash and Cash Equivalents, and the fair
market value (as determined by the Borrower in good faith) of all other
consideration or, if higher in the case of any promissory notes received as
consideration, the principal or the face amount thereof) received by the
Borrower or such Subsidiary is at least 75% cash and is paid at the time of the
closing of such sale, (y) the Net Sale Proceeds therefrom are applied and/or reinvested
as (and to the extent) required by Section 4.02(d) and (z) the net book
value (as determined in accordance with GAAP) of all assets sold pursuant to
this Section 10.02(xiv) (for this purpose excluding the value of any
related goodwill and inventory) during any fiscal year of the Borrower, when
added to the net book value (as determined in accordance with GAAP) of all
assets disposed of pursuant to Section 10.02(xvi) (for this purpose
excluding the value of any related goodwill and inventory) during such fiscal
year, shall not exceed an amount equal to $50,000,000;

 

(xv)                            sale-leaseback transactions shall be
permitted so long as (w) the respective sale in connection with any such
sale-leaseback transaction is in an arm’s-length transaction and the Borrower
or the respective Subsidiary receives at least fair market value (as determined
in good faith by the Borrower), (x) the Attributable Indebtedness associated
with such sale-leaseback does not exceed the fair market value of the assets
sold pursuant to such sale-leaseback and (y) any Indebtedness of the Borrower
and its Subsidiaries arising from any such sale-leaseback transaction shall be
permitted under Section 10.04(x);

 

73

 

(xvi)                         Permitted Asset Exchanges shall be
permitted so long as (q) no Default or Event of Default then exists or would
result therefrom, (r) the Borrower is in compliance with each of the Financial
Covenants for the respective Calculation Period determined on a Pro  Forma
Basis as if such Permitted Asset Exchange (as such as all other Permitted Asset
Exchanges theretofor consummated after the first day of such Calculation
Period) had occurred on the first day of such Calculation Period, (s) the
Borrower or the respective Subsidiary consummating such Permitted Asset
Exchange receives assets (whether cash or otherwise) having a fair market value
(as determined in good faith by the Borrower in the case of assets other than
cash) that is at least equal to the fair market value (as determined in good
faith by the Borrower in the case of assets other than cash) of the assets
(whether cash or otherwise) disposed of by the Borrower or such respective
Subsidiary in connection with such Permitted Asset Exchange, (t) any Net Sale
Proceeds therefrom are applied and/or reinvested as (and to the extent)
required by Section 4.02(d), (u) no consideration other than the assets
which are the subject of the respective Permitted Asset Exchange is paid by the
Borrower or any of its Subsidiaries unless such payment is permitted pursuant
to Section 10.05(xv), (v) any Indebtedness assumed by the Borrower or any
of its Subsidiaries at the time of any such Permitted Asset Exchange is
permitted under Section 10.04(x), (w) any Lien on any asset (or any asset
of any Person) acquired by the Borrower or any of its Subsidiaries pursuant to
any such Permitted Asset Exchange is permitted under Section 10.01(xviii),
(x) the Collateral Agent for the benefit of the Secured Creditors shall have a
perfected security interest in all assets obtained by the Borrower and each
Subsidiary Guarantor pursuant to each such Permitted Asset Exchange pursuant
to, and to the extent provided in, the Security Documents, (y) the aggregate
net book value (as determined in accordance with GAAP) of all dispositions of
businesses and properties in the Borrower’s retail segment pursuant to this Section 10.02(xvi)
(for this purpose excluding the value of any related goodwill and inventory)
during any fiscal year of the Borrower, when added to the aggregate net book
value (as determined in accordance with GAAP) of all assets sold or otherwise
disposed of pursuant to Section 10.02(xiv) (for this purpose excluding the
value of any related goodwill and inventory disposed of in connection with
sales under such Section 10.02(xiv)) during such fiscal year, does not
exceed $50,000,000 and (z) the aggregate fair market value (as determined by
the Borrower in good faith) of all property or assets of the Borrower or any of
its Subsidiaries disposed of pursuant to this Section 10.02(xvi) (other
than those in the Borrower’s retail segment) during any fiscal year of the
Borrower, when added to the Aggregate Consideration paid in respect of all
Permitted Acquisitions during such fiscal year, does not exceed $100,000,000;

 

(xvii)                      the Borrower
and its Subsidiaries may sell Investments made or held pursuant to Section 10.05(iv),
so long as (w) no Default or Event of Default then exists or would result
therefrom, (x) each such sale is in an arm’s-length transaction and the Borrower
or the respective Subsidiary receives at least fair market value (as determined
in good faith by the Borrower) therefor, (y) the consideration therefor shall
be cash or promissory notes received by the Borrower or the respective
Subsidiary, provided any security for the obligations therefor shall, be
pledged to the Collateral Agent to the extent required by the Pledge Agreement,
and (z) the Net Sale Proceeds therefrom are applied and/or reinvested as (and
to the extent) required by Section 4.02(d); and

 

74

 

(xviii)                   any Existing
Non-Material Subsidiary may be dissolved or liquidated in accordance with
applicable law.

 

To the extent the
Required Lenders waive the provisions of this Section 10.02 with respect
to the sale of any Collateral, or any Collateral is sold as permitted by this Section 10.02
(other than to the Borrower or a Subsidiary thereof, such Collateral shall be
sold free and clear of the Liens created by the Security Documents, and the
Administrative Agent and the Collateral Agent shall be authorized to take any
actions deemed appropriate in order to effect the foregoing.

 

10.03  Restricted
Payments.   The Borrower will
not, and will not permit any of its Subsidiaries to, (x) authorize, declare or
pay any Dividends with respect to the Borrower or any of its Subsidiaries or
(y) make any cash payments in respect of any Hinky Dinky Subsidiary Redemption
Notes (whether payments of principal, interest or otherwise, including without
limitation any payments made to purchase or redeem same) except that:

 

(i)                                     any Subsidiary of the Borrower may pay
cash Dividends to the Borrower or to any Wholly-Owned Subsidiary of the
Borrower;

 

(ii)                                  any non-Wholly-Owned Subsidiary of the
Borrower may pay cash Dividends to its shareholders generally so long as the
Borrower and/or its respective Subsidiaries which own Equity Interests in the
Subsidiary paying such Dividends receive at least their proportionate share
thereof (based upon their relative holdings of the Equity Interests in the
Subsidiary paying such Dividends and taking into account the relative
preferences, if any, of the various classes of Equity Interests of such
Subsidiary);

 

(iii)                               the Borrower may pay Dividends with
respect to its outstanding Equity Interests provided that (w) no
repurchases or redemptions of Equity Interests shall be permitted under this
clause (iii) (which shall be permitted only under succeeding clause (iv)), (x)
all such Dividends shall be paid in cash, (y) the aggregate amount paid by the
Borrower during any fiscal year of the Borrower (including in the case of the
Borrower’s fiscal year ending on January 1, 2005, all such amounts paid
during such fiscal year and prior to the Effective Date) in respect of all such
Dividends shall not exceed the Permitted Annual Dividend Amount for such fiscal
year of the Borrower and (z) at the time of the payment of any such Dividend,
and immediately after giving effect thereto, no Default or Event of Default
shall then exist;

 

(iv)                              the Borrower may repurchase or redeem its
outstanding Equity Interests provided that (x) all such repurchases and
redemptions shall be paid in cash, (y) the aggregate amount paid by the
Borrower during any fiscal year of the Borrower (including in the case of the
Borrower’s fiscal year ending on January 1, 2005, all such amounts paid
during such fiscal year and prior to the Effective Date) in respect of all such
repurchases and redemptions shall not exceed the Permitted Annual Repurchase
Amount for such fiscal year and (z) at the time of the payment in respect of
any such repurchase or redemption, and immediately after giving effect thereto,
no Default or Event of Default shall then exist;

 

75

 

(v)                                 the Borrower may pay regularly scheduled
Dividends on its Qualified Preferred Stock pursuant to the terms thereof,
through the issuance of additional shares of such Qualified Preferred Stock
rather than in cash;

 

(vi)                              to the extent required pursuant to the
terms of its respective Hinky Dinky Operating Agreement, each Hinky Dinky
Subsidiary may redeem its outstanding membership interests pursuant to, and in
accordance with the requirements of, such Hinky Dinky Operating Agreement, provided
that (x) the only consideration therefor shall be cash paid by such Hinky Dinky
Subsidiary in respect of such redemption and Hinky Dinky Subsidiary Redemption
Notes (with such cash and the principal amount of such Hinky Dinky Subsidiary
Redemption Notes to be in such relative amounts as described in, and required
by, such Hinky Dinky Operating Agreement) and (y) the aggregate amount of cash
paid in respect of all such redemptions shall not at any time exceed the
Permitted Investment Amount then in effect; and

 

(vii)                           the Borrower and its Subsidiaries may make
cash payments on any Hinky Dinky Subsidiary Redemption Notes (x) to pay
regularly accruing interest in respect of such Hinky Dinky Subsidiary Note
pursuant to the terms thereof and (y) in connection with purchases of
membership interests in Hinky Dinky Subsidiaries so long as the aggregate
amount of all such cash payments do not at any time exceed the Permitted
Investment Amount then in effect.

 

10.04  Indebtedness.  The Borrower will not, and will not permit
any of its Subsidiaries to, contract, create, incur, assume or suffer to exist
any Indebtedness, except:

 

(i)                                     Indebtedness incurred pursuant to this
Agreement and the other Credit Documents;

 

(ii)                                  Existing Indebtedness outstanding on the
Initial Borrowing Date (as reduced by any repayments of principal thereof),
without giving effect to any subsequent extension, renewal or refinancing
thereof except to the extent set forth on Schedule 8.21, provided
that the aggregate principal amount of the Indebtedness to be extended, renewed
or refinanced does not increase from that amount outstanding at the time of any
such extension, renewal or refinancing;

 

(iii)                               Indebtedness of the Borrower or any of
its Subsidiaries under Interest Rate Protection Agreements entered into with
respect to other Indebtedness permitted under this Section 10.04 so long
as the entering into of such Interest Rate Protection Agreements are bona fide
hedging activities and are not for speculative purposes;

 

(iv)                              (1) intercompany Indebtedness among the
Borrower and the Subsidiary Guarantors to the extent permitted by Section 10.05(viii)(1)
and (2) intercompany Indebtedness among the Credit Parties and non-Wholly-Owned
Subsidiaries of the Borrower to the extent permitted by Section 10.05(viii)(2);

 

(v)                                 (1) Indebtedness consisting of Contingent
Obligations by the Borrower and the Subsidiary Guarantors in respect of any
such Person’s Indebtedness permitted under clauses (iii), (vii), (ix), or (x)
of this Section 10.04 and (2) Indebtedness consisting 

 

76

 

of Contingent
Obligations of the Borrower and the Subsidiary Guarantors in respect of any
such Person’s obligations not constituting Indebtedness that are not otherwise
prohibited by this Agreement;

 

(vi)                              unsecured senior subordinated Indebtedness
of the Borrower and any other Subsidiary Guarantor incurred under the Existing
Senior Subordinated Notes and the other Existing Senior Subordinated Note
Documents in an aggregate principal amount not to exceed $165,000,000, provided
that no Indebtedness shall be permitted under this clause (vi) at any time from
and after the 45th day following the Initial Borrowing Date;

 

(vii)                           Indebtedness of the Borrower or any of
its Subsidiaries under Other Hedging Agreements providing protection to the
Borrower and its Subsidiaries against fluctuations in currency values or
commodity prices in connection with the Borrower’s or any of its Subsidiaries’
operations so long as the entering into of such Other Hedging Agreements are bona  fide
hedging activities and are not for speculative purposes;

 

(viii)                        the Borrower or any Subsidiary of the
Borrower may guarantee, on an unsecured basis and otherwise in the ordinary
course of business and consistent with past practices, obligations of third
party customers of the Borrower or any such Subsidiary as the lessee under any
lease or pursuant to any extensions of credit made to such third party
customer, provided that (i) the aggregate amount of all such obligations
of the Borrower and its Subsidiaries arising under all such outstanding
guarantees whether made before or after the Effective Date (calculated by using
the amount equal to the stated or determinable amount of the underlying
obligations related to such guarantees or, if not determinable, the maximum
reasonably anticipated liability in respect thereof (assuming the Borrower or
such Subsidiary is required to perform thereunder) as determined by the
Borrower or such Subsidiary in good faith), shall not at any time exceed
$50,000,000 (it being understood that Contingent Obligations described on Schedule 8.21
that are not Contingent Obligations of the type described in this clause (viii)
shall not count against the aforementioned $50,000,000 limit);

 

(ix)                                unsecured subordinated Indebtedness of
the Borrower (and unsecured subordinated guarantees thereof by any Subsidiary
Guarantor (for so long as such Person remains a Subsidiary Guarantor)) incurred
under Permitted Subordinated Debt Documents and the other Permitted
Subordinated Debt Documents so long as (A) at least 10 Business Days prior to
the issuance thereof, the Borrower shall have delivered to the Administrative
Agent the then current drafts of the Permitted Subordinated Debt Documents and
with any changes thereto made after the initial delivery of such Permitted
Subordinated Debt Documents to be delivered to the Administrative Agent
concurrently with the delivery thereof to the Persons to be party to such
Permitted Subordinated Debt Documents and prior to the issuance of the related
Permitted Subordinated Debt, (B) the final maturity date thereof is no earlier
than one year following the latest Maturity Date then in effect for outstanding
Term Loans at the time of the issuance of any such Permitted Subordinated Debt,
(C) there are no scheduled amortization, mandatory redemption or sinking fund
provisions or similar provisions prior to the maturity of the Permitted
Subordinated Debt (other than provisions requiring an offer to purchase
Permitted Subordinated Debt to be made upon the occurrence of a change in
control or 

 

77

 

asset sale on
terms reasonably satisfactory to the Administrative Agent), (D) the
subordination provisions applicable to the Permitted Subordinated Debt shall be
in form and substance reasonably satisfactory to the Administrative Agent, (E)
the interest rates (calculated including any original issued discount in
respect thereof) and related premiums applicable to any issue of Permitted
Subordinated Debt shall be based on market interest rates existing at such time
for transactions of a similar nature with issuers that are similarly situated
with the Borrower, (F) the respective Permitted Subordinated Debt Documents do
not contain (i) any financial maintenance covenants (or defaults having the
same effect as a financial maintenance covenant) or (ii) any cross-default
provisions (although such Permitted Subordinated Debt Documents may include a
provision for a cross-acceleration and a cross-payment default at final
maturity to other material Indebtedness), (G) all other terms and conditions of
each issue of Permitted Subordinated Debt shall, be in form and substance
reasonably satisfactory to the Administrative Agent, (H) no Default or
Event of Default then exists or would result from the issuance thereof, (I)
prior to the issuance of any Permitted Subordinated Debt, the Borrower shall
have delivered to the Administrative Agent and each of the Lenders a
certificate of the Borrower’s Chief Financial Officer certifying (and showing
the calculations therefor in reasonable detail) that the Borrower and its
Subsidiaries shall be in compliance with the Financial Covenants on a Pro Forma Basis on the date of the respective
issuance of the Permitted Subordinated Debt after giving effect thereto and the
application of the proceeds thereof on such date and (J) prior to the issuance
of any Permitted Subordinated Debt, the Borrower shall deliver evidence
satisfactory to the Administrative Agent, including a certificate of the Chief
Financial Officer of the Borrower (accompanied by any required financial
calculations in reasonable detail) and an opinion of counsel for the Borrower,
that the issuance of such Permitted Subordinated Debt (and all related
Permitted Subordinated Debt Documents) are permitted by all other Permitted Subordinated
Debt then outstanding; and

 

(x)                                   so long as no Default or Event of Default
then exists or would result therefrom, additional Indebtedness incurred by the
Borrower and its Subsidiaries in an aggregate principal amount at any one time
outstanding not to exceed at any time the Permitted Indebtedness Amount then in
effect; provided that at no time shall the aggregate principal amount of
Indebtedness outstanding pursuant to this Section 10.04(x) which does not
constitute Capital Lease Obligations exceed $60,000,000.

 

10.05  Advances,
Investments and Loans.  The Borrower
will not, and will not permit any of its Subsidiaries to, directly or
indirectly, lend money or extend credit or make advances to any Person, or
purchase or acquire any stock, obligations or securities of, or any other
interest in, or make any capital contribution to, any other Person, or purchase
or own a futures contract or otherwise become liable for the purchase or sale
of currency or other commodities at a future date in the nature of a futures
contract, or hold any cash or Cash Equivalents (each of the foregoing an “Investment”
and, collectively, “Investments”), except that the following shall be
permitted:

 

(i)                                     the Borrower and its Subsidiaries may
acquire and hold accounts receivables owing to any of them, if created or
acquired in the ordinary course of 

 

78

 

business and
payable or dischargeable in accordance with customary trade terms of the
Borrower or such Subsidiary;

 

(ii)                                  the Borrower and its Subsidiaries may
acquire and hold cash and Cash Equivalents, provided that during any
time that Revolving Loans or Swingline Loans are outstanding the aggregate
amount of cash and Cash Equivalents held by the Borrower and its Subsidiaries
shall not exceed $20,000,000 for any period of five consecutive Business Days;

 

(iii)                               the Borrower and its Subsidiaries may
hold the Investments held by them on the Initial Borrowing Date and described
on Schedule 10.05(iii), provided that any additional Investments
made with respect thereto shall be permitted only if independently justified
under the other provisions of this Section 10.05;

 

(iv)                              the Borrower and its Subsidiaries may
acquire and own investments (including debt obligations) received in connection
with the bankruptcy or reorganization of suppliers and customers and in good
faith settlement of delinquent obligations of, and other disputes with,
customers and suppliers arising in the ordinary course of business;

 

(v)                                 the Borrower and its Subsidiaries may
make loans and advances to their officers, employees and sales representatives
for moving, relocation and travel expenses and other similar expenditures, in
each case in the ordinary course of business in an aggregate amount not to
exceed $2,000,000 at any time (determined without regard to any write-downs or
write-offs of such loans and advances);

 

(vi)                              the Borrower may enter into Interest Rate
Protection Agreements to the extent permitted by Section 10.04(iii);

 

(vii)                           the Borrower and its Subsidiaries may
acquire and hold promissory notes and other non-cash consideration issued by
the purchaser of assets in connection with a sale of such assets to the extent
permitted by Section 10.02(v) or 10.02(xiv) in the case of promissory
notes issued as consideration for the purchase of non-inventory assets as
described in such 10.02(xiv);

 

(viii)                        (1) the Borrower and the Subsidiary
Guarantors may make intercompany loans and advances between or among one
another and (2) Credit Parties and non-Wholly-Owned Subsidiaries of the
Borrower may make intercompany loans and advances between or among one another
to the extent such intercompany loans and advances arise in connection with the
cash management of such Persons in the ordinary course of business consistent
with past practices (the intercompany loans and advances set forth in this
clause (viii) are referred to as “Intercompany Loans”), provided that
(x)  the aggregate principal amount of
all Intercompany Loans made pursuant to subclause (viii)(2) above shall not exceed
$5,000,000 and (y) if any such Intercompany Loan made pursuant to this clause
(viii) by any Credit Party is evidenced by an intercompany note or other
instrument, such promissory note or other instrument shall be pledged to the
Collateral Agent to the extent required by the Pledge Agreement;

 

(ix)                                Permitted Acquisitions shall be permitted
in accordance with Section 9.14;

 

79

 

(x)                                   the Borrower and its Subsidiaries may
enter into Other Hedging Agreements to the extent permitted by Section 10.04(viii);

 

(xi)                                (A) loans and advances to customers of
the Borrower and its Subsidiaries for use by such customers in the ordinary
course of their respective businesses, provided that all such loans and
advances shall be made in the ordinary course of business of the Borrower and
its Subsidiaries and in accordance with their respective customary practices
and procedures and (B) promissory notes held by the Borrower and its
Subsidiaries issued by the purchaser of assets constituting inventory in
connection with sales of retail stores permitted under Section 10.02(xiv),
provided that the aggregate outstanding principal amount of all such
loans and advances, whether made before or after the Effective Date, and all
such promissory notes shall not at any time exceed 5% of Distribution Revenues
for the Borrower’s then most recently ended fiscal year (in each case
determined without regard to any write downs or write offs of such loans and
advances and promissory notes other than any such write downs and write offs
made prior to the Effective Date);

 

(xii)                             transfers of assets constituting
Investments described in Sections 10.02(ix) and (xvi) shall be permitted in
accordance with such Sections;

 

(xiii)                          the Borrower and the Subsidiary
Guarantors may make cash capital contributions to their respective Wholly-Owned
Subsidiaries that are Subsidiary Guarantors and, so long as no Default or Event
of Default then exists, may capitalize or forgive any Indebtedness owed to any
of them by any such Wholly-Owned Subsidiary;

 

(xiv)                         the Borrower and its Subsidiaries may
create and fund nonqualified deferred compensation arrangements pursuant to
which cash is transferred by the Borrower or such Subsidiary to an irrevocable
trust to be held for the benefit of certain executive employees and directors
of the Borrower or such Subsidiary; provided that (i) any amounts
transferred to such trust are in respect of expenses that have actually reduced
Consolidated Net Income and (ii) any such arrangement (including any trust
instrument created pursuant thereto) shall expressly provide that the principal
and income of the trust created pursuant thereto shall be subject to the claims
of the creditors of the Borrower or such Subsidiary (including, without limitation,
the Lenders) under all applicable law upon the occurrence of an Event of Default under Section 11.05;
and

 

(xv)                            so long as no Default or Event of Default
then exists or would result therefrom, the Borrower and its Subsidiaries may
make Investments not otherwise permitted by clauses (i) through (xiv) of this Section 10.05
in an aggregate amount not to exceed the Permitted Investment Amount then in
effect (determined without regard to any write downs or write offs thereof), provided
that no Investments may be made in Existing Non-Material Subsidiaries pursuant
to this clause (xv).

 

10.06  Transactions
with Affiliates.  The Borrower will
not, and will not permit any of its Subsidiaries to, enter into any transaction
or series of related transactions with any Affiliate of the Borrower or any of
its Subsidiaries other than any such transaction or series of related
transactions (i) among the Borrower and Wholly-Owned Subsidiaries of the
Borrower 

 

80

 

that are Subsidiary Guarantors or (ii) consummated in the ordinary
course of business and on terms and conditions substantially as favorable to
the Borrower or such Subsidiary as would reasonably be obtained by the Borrower
or such Subsidiary at that time in a comparable arm’s-length transaction with a
Person other than an Affiliate, except that the following in any event shall be
permitted:

 

(i)                                     Dividends may be paid to the extent
provided in Section 10.03;

 

(ii)                                  loans may be made and other transactions
may be entered into by the Borrower and its Subsidiaries to the extent
permitted by Sections 10.02, 10.04 and 10.05;

 

(iii)                               customary fees and expense reimbursement
may be paid to non-officer directors of the Borrower and its Subsidiaries; and

 

(iv)                              the Borrower and its Subsidiaries may
enter into, and may make payments under, employment agreements, employee
benefits plans, stock option plans, indemnification provisions and other
similar compensatory arrangements with officers, employees and directors of the
Borrower and its Subsidiaries in the ordinary course of business.

 

10.07  Capital
Expenditures.  (a)  The Borrower will not, and will not permit
any of its Subsidiaries to, make any Capital Expenditures (other than Capital
Expenditures otherwise permitted under clauses (b) through (e), below), except
that during any Test Period ending after the Effective Date the Borrower and
its Subsidiaries may make Capital Expenditures in an aggregate amount during
any such Test Period not to exceed 1.6% of the Borrower’s Total Sales and
Revenues during such Test Period.

 

(b)                                 In addition to the foregoing, the
Borrower and its Subsidiaries may make Capital Expenditures with the amount of
Net Sale Proceeds received by the Borrower or any of its Subsidiaries from any
Asset Sale so long as such Net Sale Proceeds are reinvested during the Relevant
Reinvestment Period, but only to the extent that such Net Sale Proceeds are not
otherwise applied to repay Loans pursuant to Section 4.02(d).

 

(c)                                  In addition to the foregoing, the
Borrower or any of its Subsidiaries may make Capital Expenditures with the
amount of Net Insurance Proceeds received by the Borrower or any of its
Subsidiaries from any Recovery Event so long as such Net Insurance Proceeds are
used to replace or restore any properties or assets in respect of which such
Net Insurance Proceeds were paid during the Relevant Reinvestment Period, but
only to the extent that such Net Insurance Proceeds are not otherwise required
to be applied to repay Term Loans pursuant to Section 4.02(e).

 

(d)                                 In addition to the foregoing, the
Borrower and the Subsidiary Guarantors may consummate Permitted Acquisitions in
accordance with the requirements of Section 9.14.

 

(e)                                  In addition to the foregoing, the
Borrower and its Subsidiaries may incur Capitalized Lease Obligations to the
extent permitted under Section 10.04(x).

 

81

 

10.08  Consolidated
Interest Coverage Ratio. 
The Borrower will not permit the Consolidated Interest Coverage Ratio
for any Test Period ending on the last day of a fiscal quarter of the Borrower
set forth below to be less than the ratio set forth opposite such fiscal
quarter below:

 

	
  Fiscal Quarter Ending Closest To

  	
   

  	
  Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31,
  2004

  	
   

  	
  3.50:1.00

  	
   

  
	
  March 31,
  2005

  	
   

  	
  3.50:1.00

  	
   

  
	
  June 30,
  2005

  	
   

  	
  3.50:1.00

  	
   

  
	
  September 30,
  2005

  	
   

  	
  3.50:1.00

  	
   

  
	
  December 31,
  2005

  	
   

  	
  3.50:1.00

  	
   

  
	
  March 31,
  2006

  	
   

  	
  3.50:1.00

  	
   

  
	
  June 30,
  2006

  	
   

  	
  3.50:1.00

  	
   

  
	
  September 30,
  2006

  	
   

  	
  3.50:1.00

  	
   

  
	
  December 31,
  2006

  	
   

  	
  3.50:1.00

  	
   

  
	
  March 31,
  2007

  	
   

  	
  3.50:1.00

  	
   

  
	
  June 30,
  2007

  	
   

  	
  3.50:1.00

  	
   

  
	
  September 30,
  2007

  	
   

  	
  3.50:1.00

  	
   

  
	
  December 31,
  2007 and thereafter

  	
   

  	
  4.00:1.00

  	
   

  

 

For purposes of making
determinations pursuant to Section 9.14 only, determinations pursuant to
this Section 10.08 shall be made on a Pro
Forma Basis.

 

10.09  Total Leverage
Ratio.  The Borrower will not permit
the Total Leverage Ratio on the last day of any fiscal quarter of the Borrower
set forth below to exceed the respective ratio set forth opposite such fiscal
quarter below:

 

	
  Fiscal Quarter Ending Closest To

  	
   

  	
  Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31,
  2004

  	
   

  	
  3.50:1.00

  	
   

  
	
  March 31,
  2005

  	
   

  	
  3.50:1.00

  	
   

  
	
  June 30,
  2005

  	
   

  	
  3.50:1.00

  	
   

  
	
  September 30,
  2005

  	
   

  	
  3.50:1.00

  	
   

  
	
  December 31,
  2005

  	
   

  	
  3.50:1.00

  	
   

  
	
  March 31,
  2006

  	
   

  	
  3.50:1.00

  	
   

  
	
  June 30,
  2006

  	
   

  	
  3.50:1.00

  	
   

  
	
  September 30,
  2006

  	
   

  	
  3.50:1.00

  	
   

  
	
  December 31,
  2006

  	
   

  	
  3.25:1.00

  	
   

  
	
  March 31,
  2007

  	
   

  	
  3.25:1.00

  	
   

  
	
  June 30,
  2007

  	
   

  	
  3.25:1.00

  	
   

  
	
  September 30,
  2007

  	
   

  	
  3.25:1.00

  	
   

  
	
  December 31,
  2007 and thereafter

  	
   

  	
  3.00:1.00

  	
   

  

 

82

 

Notwithstanding anything
to the contrary contained in this Agreement, all determinations of the Total
Leverage Ratio for purposes of this Section 10.09 shall include
Consolidated EBITDA as calculated on a Pro  Forma Basis to give
effect to all Permitted Acquisitions, if any, effected during the respective
Test Period for which Consolidated EBITDA is being determined, as provided in
the first sentence of the definition of Total Leverage Ratio contained herein
(with the second sentence of the definition of Total Leverage Ratio being inapplicable
to determinations pursuant to this Section 10.09).

 

10.10  Senior Secured
Leverage Ratio.  The Borrower will
not permit the Senior Secured Leverage Ratio on the last day of any fiscal
quarter of the Borrower set forth below to exceed the respective ratio set
forth opposite such fiscal quarter below:

 

	
  Fiscal Quarter Ending Closest To

  	
   

  	
  Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31,
  2004

  	
   

  	
  2.75:1.00

  	
   

  
	
  March 31,
  2005

  	
   

  	
  2.75:1.00

  	
   

  
	
  June 30,
  2005

  	
   

  	
  2.75:1.00

  	
   

  
	
  September 30,
  2005

  	
   

  	
  2.75:1.00

  	
   

  
	
  December 31,
  2005

  	
   

  	
  2.75:1.00

  	
   

  
	
  March 31,
  2006

  	
   

  	
  2.75:1.00

  	
   

  
	
  June 30,
  2006

  	
   

  	
  2.75:1.00

  	
   

  
	
  September 30,
  2006

  	
   

  	
  2.75:1.00

  	
   

  
	
  December 31,
  2006

  	
   

  	
  2.50:1.00

  	
   

  
	
  March 31,
  2007

  	
   

  	
  2.50:1.00

  	
   

  
	
  June 30,
  2007

  	
   

  	
  2.50:1.00

  	
   

  
	
  September 30,
  2007

  	
   

  	
  2.50:1.00

  	
   

  
	
  December 31,
  2007 and thereafter

  	
   

  	
  2.25:1.00

  	
   

  

 

Notwithstanding anything
to the contrary contained in this Agreement, all determinations of the Senior
Secured Leverage Ratio for purposes of this Section 10.10 shall include
Consolidated EBITDA as calculated on a Pro  Forma Basis to give
effect to all Permitted Acquisitions, if any, effected during the respective
Test Period for which Consolidated EBITDA is being determined, as provided in
the definition of Senior Secured Leverage Ratio contained herein.

 

10.11  Consolidated
Working Capital Ratio.  The Borrower
will not permit the Consolidated Working Capital Ratio at any time during any
period set forth below to be less than the respective ratio set forth opposite
such period set forth below:

 

	
  Period

  	
   

  	
  Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  From the Effective Date
  to, but not including, the last day of the Borrower’s fiscal quarter ending
  closest to September 30, 2005

  	
   

  	
  1.50:1.00

  	
   

  
	
  Thereafter to, but not
  including, the last day of the Borrower’s fiscal quarter ending closest to September 30,
  2008

  	
   

  	
  1.75:1.00

  	
   

  
	
  Thereafter

  	
   

  	
  2.00:1.00

  	
   

  

 

83

 

10.12  Limitations on
Voluntary Prepayments and Modifications of Indebtedness; Modifications of
Certificate of Incorporation, By-Laws and Certain Other Agreements, etc.  The Borrower will not, and will not permit
any of its Subsidiaries to:

 

(i)                                     make (or give any notice in respect of)
any voluntary or optional payment or prepayment on or redemption or acquisition
for value of, or any prepayment or redemption as a result of any asset sale or
similar event (including in each case, without limitation, by way of depositing
with the trustee with respect thereto or any other Person money or securities
before due for the purpose of paying when due), (A) any Hinky Dinky Subsidiary
Redemption Notes, provided that any Hinky Dinky Subsidiary may prepay in
full any Hinky Dinky Subsidiary Redemption Note issued by it so long as (x) at
the time of any such prepayment the respective Hinky Dinky Subsidiary becomes,
or already is, a Wholly-Owned Subsidiary of the Borrower and (y) such
prepayments are otherwise permitted under Section 10.03(vii), (B) any
Existing Senior Subordinated Notes, provided that the Existing Senior
Subordinated Notes may be redeemed pursuant to the Existing Senior Subordinated
Notes Redemption or (C) after the issuance thereof, any Permitted Subordinated
Debt;

 

(ii)                                  amend or modify, or permit the amendment
or modification of, any provision of any Existing Senior Subordinated Note
Document or, after the issuance of any Permitted Subordinated Debt, any
provision of Permitted Subordinated Debt Document related thereto;

 

(iii)                               amend, modify or change its certificate
or articles of incorporation (including, without limitation, by the filing or
modification of any certificate or articles of designation), certificate of
formation, limited liability company agreement or by-laws (or the equivalent
organizational documents), as applicable, or any agreement entered into by it
with respect to its Equity Interests (including any Shareholder Agreement), or
enter into any new agreement with respect to its Equity Interests, unless such
amendment, modification, change or other action contemplated by this clause
(iii) could not reasonably be expected to be adverse to the interests of the
Lenders in any material respect; or

 

(iv)                              amend, modify or change any provision of
(x) any Management Agreement unless such amendment, modification or change
could not reasonably be expected to have a Material Adverse Effect or (y) any
Tax Sharing Agreement or enter into any new tax sharing agreement, tax
allocation agreement or similar agreement without the prior written consent of
the Administrative Agent unless such amendment, 

 

84

 

modification or
change could not reasonably be expected to be adverse to the interests of the
Lenders in any material respect.

 

10.13  Limitation on
Certain Restrictions on Subsidiaries.  The Borrower will not, and will not permit
any of its Subsidiaries to, directly or indirectly, create or otherwise cause
or suffer to exist or become effective any encumbrance or restriction on the
ability of any such Subsidiary to (a) pay dividends or make any other
distributions on its capital stock or any other interest or participation in
its profits owned by the Borrower or any of its Subsidiaries, or pay any
Indebtedness owed to the Borrower or any of its Subsidiaries, (b) make loans or
advances to the Borrower or any of its Subsidiaries or (c) transfer any of its
properties or assets to the Borrower or any of its Subsidiaries, except for
such encumbrances or restrictions existing under or by reason of (i) applicable
law, (ii) this Agreement, (iii) the other Credit Documents, (iv) the Existing
Senior Subordinated Note Documents (but only until the 45th day following the
Initial Borrowing Date), (v) after the issuance of Permitted Subordinated Debt,
the related Permitted Subordinated Debt Documents, provided that such
encumbrances and restrictions are reflective of similar encumbrances and
restrictions contained in definitive documentation governing securities similar
to Permitted Subordinated Debt and are not (taken as a whole) materially more
restrictive on the Borrower (or less favorable to the Lenders) than those
encumbrances and restrictions contained in the Existing Senior Subordinated
Note Documents, (vi) customary provisions restricting subletting or assignment
of any lease governing any leasehold interest of the Borrower or any of its
Subsidiaries, (vii) customary provisions restricting assignment of any
licensing agreement (in which the Borrower or any of its Subsidiaries is the
licensee) or other contract entered into by the Borrower or any of its
Subsidiaries in the ordinary course of business, (viii) restrictions on the
transfer of any asset pending the close of the sale of such asset, (ix)
restrictions on the transfer of any asset subject to a Lien permitted by Section 10.01(iii),
(vi), (vii) or (xv), (x) customary provisions in partnership agreements,
limited liability company organizational governance documents, joint venture
agreements and other similar agreements that restrict the transfer of ownership
interests in, or assets of, a partnership, limited liability company or joint
venture that is a non-Wholly Owned Subsidiary of the Borrower that has been
acquired or created in accordance with Section 10.16 and (xi) restrictions
on the transfer of assets of any such partnership, limited liability company or
joint venture described in preceding clause (x) contained in any agreement
evidencing or securing Indebtedness of any such partnership, limited liability
company or joint venture so long as such Indebtedness is otherwise permitted
under Section 10.04.

 

10.14  Limitation on
Issuance of Capital Stock. 
(a)  The Borrower will not, and
will not permit any of its Subsidiaries to, issue (i) any preferred stock or
other preferred equity interests (other than Qualified Preferred Stock issued
by the Borrower) or (ii) any redeemable common stock or other redeemable common
equity interests other than common stock or other redeemable common equity
interests that is redeemable at the sole option of the Borrower or such
Subsidiary, as the case may be.

 

(b)                                 The Borrower will not permit any of its
Subsidiaries to issue any capital stock or other equity interests (including by
way of sales of treasury stock) or any options or warrants to purchase, or
securities convertible into, capital stock or other equity interests, except
(i) for transfers and replacements of then outstanding shares of capital stock
or other equity interests, (ii) for stock splits, stock dividends and issuances
which do not decrease the percentage 

 

85

 

 

ownership of the
Borrower or any of its Subsidiaries in any class of the capital stock or other
equity interests of such Subsidiary, (iii) to qualify directors to the extent
required by applicable law, or (iv) for issuances by newly created or acquired
Subsidiaries in accordance with the terms of this Agreement.

 

10.15  Business.  The Borrower will not, and will not permit
any of its Subsidiaries to, engage in any business other than the businesses
engaged in by the Borrower and its Subsidiaries as of the Initial Borrowing
Date and reasonable extensions thereof.

 

10.16  Limitation on
Creation of Subsidiaries. 
The Borrower will not, and will not permit any of its Subsidiaries to,
establish, create or acquire after the Initial Borrowing Date any Subsidiary, provided
that the Borrower and its Wholly-Owned Subsidiaries shall be permitted to (A)
establish, create and, to the extent permitted by this Agreement, acquire
Wholly-Owned Subsidiaries so long as (i) the equity interests of each such new
Wholly-Owned Subsidiary is, subject to Section 9.13, pledged pursuant to,
and to the extent required by, the Pledge Agreement, (ii) promptly following
the establishment, creation or acquisition thereof each such new Wholly-Owned
Domestic Subsidiary (and, to the extent required by Section 9.13, each
such new Wholly-Owned Foreign Subsidiary) executes a counterpart of the
Subsidiaries Guaranty, the Pledge Agreement and the Security Agreement, and
(iii) each such new Wholly-Owned Domestic Subsidiary (and, to the extent
required by Section 9.13, each such new Wholly-Owned Foreign Subsidiary),
to the extent requested by the Administrative Agent or the Required Lenders,
takes all actions required pursuant to Section 9.12 and (B) establish,
create and acquire non-Wholly-Owned Subsidiaries in each case to the extent
permitted by Section 10.05(xv) and the definition of Permitted Acquisition
so long as the equity interest of each such non-Wholly-Owned Subsidiary is
pledged pursuant to, and to the extent required by, the Pledge Agreement.  In addition, each such new Wholly-Owned
Subsidiary which is required to become a Credit Party shall execute and
deliver, or cause to be executed and delivered, all other relevant
documentation of the type described in Section 5 as such new Wholly-Owned
Subsidiary would have had to deliver if such new Wholly-Owned Subsidiary were a
Credit Party on the Initial Borrowing Date.

 

10.17  No Other “Designated
Senior Indebtedness”.  The Borrower
shall not designate, or permit the designation of, any Indebtedness (other than
under this Agreement or the other Credit Documents) as (i) “Designated
Senior Indebtedness” for the purpose of the definition of the same or the
subordination provisions contained in the Existing Senior Subordinated Note
Indenture or (ii) any similar term for the purposes of any Permitted
Subordinated Debt Documents.

 

10.18  Changes To
Legal Names; Organizational Identification Numbers, Jurisdiction or
Type of Organization.  No Credit
Party shall change, or permit any change to, its legal name until (i) it shall
have given to the Administrative Agent and the Collateral Agent not less then
15 days prior written notice of its intention so to do, clearly describing such
new name and providing other information in connection therewith as the Administrative
Agent or Collateral Agent may reasonably request and (ii) with respect to such
new name, it shall have taken all action reasonably requested by the
Administrative Agent or Collateral Agent to maintain the security interests of
the Administrative Agent or Collateral Agent in the Collateral intended to be
granted pursuant to the Security Documents at all times fully perfected and in
full 

 

86

 

force and effect.  In addition,
to the extent that any Credit Party does not have an organizational
identification number on the date hereof and later obtains one, or if there is
any change in the organizational identification number of any Credit Party, the
Borrower or such Credit Party shall promptly notify the Administrative Agent
and the Collateral Agent of such new or changed organizational identification
number and shall take all actions reasonably satisfactory to the Administrative
Agent and the Collateral Agent to the extent necessary to maintain the security
interests of the Administrative Agent or Collateral Agent in the Collateral
intended to be granted pursuant to the Security Documents fully perfected and
in full force and effect.  Furthermore,
no Credit Party shall change its jurisdiction of organization or its type of
organization until (i) it shall have given to the Administrative Agent and the
Collateral Agent not less than 15 days prior written notice of its intention so
to do, clearly describing such new jurisdiction of organization and/or type of
organization and providing such other information in connection therewith as
the Administrative Agent or Collateral Agent may reasonably request and (ii)
with respect to such new jurisdiction and/or type of organization, it shall
have taken all actions reasonably requested by the Administrative Agent or the
Collateral Agent to maintain the security interests of the Administrative Agent
or Collateral Agent in the Collateral intended to be granted pursuant to the
Security Documents at all times fully perfected and in full force and
effect.  If at any time Schedule 10.18
hereto is not true and correct (as of the date in question, which may be after
the Effective Date), whether because of changes thereto or as a result of the
creation or acquisition of additional Credit Parties, the Borrower shall
promptly furnish to the Administrative Agent and the Collateral Agent a true
and correct updated Schedule 10.18, which shall contain the updated
information required therein with respect to each Credit Party as of the date
of any change thereto.

 

10.19  Existing Non-Material
Subsidiaries.  No Existing
Non-Material Subsidiary shall engage in any significant operations.

 

SECTION 11.  Events of Default.  Upon the occurrence of any of the following
specified events (each an “Event of Default”):

 

11.01  Payments.  The Borrower shall (i) default in the payment
when due of any principal of any Loan or any Note or (ii) default, and such
default shall continue unremedied for three or more Business Days, in the
payment when due of any interest on any Loan or Note, any Unpaid Drawing or any
Fees or any other amounts owing hereunder or under any other Credit Document;
or

 

11.02  Representations,
etc.  Any representation, warranty or
statement made or deemed made by any Credit Party herein or in any other Credit
Document or in any certificate delivered to any Agent or any Lender pursuant
hereto or thereto shall prove to be untrue in any material respect on the date
as of which made or deemed made; or

 

11.03  Covenants.  The Borrower or any of its Subsidiaries shall
(i) default in the due performance or observance by it of any term, covenant or
agreement contained in Section 9.01(f)(i), 9.08, 9.11, 9.14, 9.15, 9.17,
9.18 or Section 10 or (ii) default in the due performance or observance by
it of any other term, covenant or agreement contained in this Agreement or in
any other Credit Document (other than those set forth in Sections 11.01 and
11.02) and such default 

 

87

 

shall continue unremedied for a period of 30 days after written notice
thereof to the defaulting party by any Agent or the Required Lenders; or

 

11.04  Default Under
Other Agreements.  (i)  The Borrower or any of its Subsidiaries shall
(x) default in any payment of any Indebtedness (other than the Obligations)
beyond the period of grace, if any, provided in the instrument or agreement
under which such Indebtedness was created or (y) default in the observance or
performance of any agreement or condition relating to any Indebtedness (other
than the Obligations) or contained in any instrument or agreement evidencing,
securing or relating thereto, or any other event shall occur or condition
exist, the effect of which default or other event or condition is to cause, or
to permit the holder or holders of such Indebtedness (or a trustee or agent on
behalf of such holder or holders) to cause (determined without regard to
whether any notice is required), any such Indebtedness to become due prior to
its stated maturity, or (ii) any Indebtedness (other than the Obligations) of
the Borrower or any of its Subsidiaries shall be declared to be (or shall
become) due and payable, or required to be prepaid other than by a regularly
scheduled required prepayment, prior to the stated maturity thereof provided
that it shall not be a Default or an Event of Default under this Section 11.04
unless the aggregate principal amount of all Indebtedness as described in
preceding clauses (i) and (ii) is at least $5,000,000; provided  further,
that the amount of Indebtedness at any time outstanding in respect of Interest
Rate Protection Agreements and Other Hedging Agreements shall, for the purposes
of this Section 11.04, be deemed to be the unrealized net loss position,
if any, of the Borrower and/or its Subsidiaries thereunder at such time,
determined on a marked-to-market basis no more than one month prior to such
time; or

 

11.05  Bankruptcy,
etc.  The Borrower or any of its
Subsidiaries (other than any Existing Non-Material Subsidiary) shall commence a
voluntary case concerning itself under Title 11 of the United States Code
entitled “Bankruptcy,” as now or hereafter in effect, or any successor thereto
(the “Bankruptcy Code”); or an involuntary case is commenced against the
Borrower or any of its Subsidiaries (other than any Existing Non-Material
Subsidiary), and the petition is not contested within 20 days, or is not
dismissed within 60 days, after commencement of the case; or a custodian (as
defined in the Bankruptcy Code) is appointed for, or takes charge of, all or
substantially all of the property of the Borrower or any of its Subsidiaries,
or the Borrower or any of its Subsidiaries (other than any Existing
Non-Material Subsidiary) commences any other proceeding under any
reorganization, arrangement, adjustment of debt, relief of debtors,
dissolution, insolvency or liquidation or similar law of any jurisdiction
whether now or hereafter in effect relating to the Borrower or any of its
Subsidiaries (other than any Existing Non-Material Subsidiary), or there is commenced
against the Borrower or any of its Subsidiaries (other than any Existing
Non-Material Subsidiary) any such proceeding which remains undismissed for a
period of 60 days, or the Borrower or any of its Subsidiaries (other than any
Existing Non-Material Subsidiary) is adjudicated insolvent or bankrupt; or any
order of relief or other order approving any such case or proceeding is
entered; or the Borrower or any of its Subsidiaries (other than any Existing
Non-Material Subsidiary) suffers any appointment of any custodian or the like
for it or any substantial part of its property to continue undischarged or
unstayed for a period of 60 days; or the Borrower or any of its Subsidiaries
(other than any Existing Non-Material Subsidiary) makes a general assignment
for the benefit of creditors; or any corporate, limited liability company or
similar action is taken by the Borrower or any of its 

 

88

 

Subsidiaries (other than any Existing Non-Material Subsidiary) for the
purpose of effecting any of the foregoing; or

 

11.06  ERISA.  (a) 
(i) Any Plan shall fail to satisfy the minimum funding standard required
for any plan year or part thereof under Section 412 of the Code or Section 302
of ERISA or a waiver of such standard or extension of any amortization period
is sought or granted under Section 412 of the Code or Section 303 or
304 of ERISA;

 

(ii)                                  a
Reportable Event shall have occurred;

 

(iii)                               a
contributing sponsor (as defined in Section 4001(a)(13) of ERISA) of a Plan
subject to Title IV of ERISA shall be subject to the advance reporting
requirement of PBGC Regulation Section 4043.61 (without regard to
subparagraph (b)(1) thereof) and an event described in subsection .62,
..63, .64, .65, .66, .67 or .68 of PBGC Regulation Section 4043 shall be
reasonably expected to occur with respect to such Plan within the following 30
days; or

 

(iv)                              any
Plan which is subject to Title IV of ERISA shall have had or is likely to have
a trustee appointed to administer such Plan pursuant to Section 4042 of
ERISA; or

 

(v)                                 any
Plan which is subject to Title IV of ERISA is, shall have been or is likely to
be terminated or to be the subject of termination proceedings under Section 4042
of ERISA;

 

(vi)                              a
contribution required to be made with respect to a Plan or a Foreign Pension
Plan has not been timely made;

 

(vii)                           the
Borrower or any Subsidiary of the Borrower or any ERISA Affiliate has incurred
or is likely to incur any liability to or on account of a Plan under Section 409,
502(i), 502(l), 515, 4062, 4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or Section 401(a)(29),
4971 or 4975 of the Code or on account of a group health plan (as defined in Section 607(1)
of ERISA, Section 4980B(g)(2) of the Code or 45 Code of Federal
Regulations Section 160.103) for failing to comply with Section 4980B
of the Code and/or the Health Insurance Portability and Accountability Act of
1996; or

 

(viii)                        the
Borrower or any Subsidiary of the Borrower has incurred or is likely to incur
liabilities pursuant to one or more employee welfare benefit plans (as defined
in Section 3(1) of ERISA) that provide benefits to retired employees or
other former employees (other than as required by Section 601 of ERISA or
state insurance continuation laws not preempted by ERISA) or Plans or Foreign
Pension Plans; or

 

(ix)                                a “default”
within the meaning of Section 4219(c)(5) of ERISA shall occur with respect
to any Plan;

 

(b)                                 there shall result from any such
event or events under subsection (a) of Section 11.06 the imposition
of a lien, the granting of a security interest, or a liability or a material
risk of incurring a liability; and

 

89

 

(c)                                  such lien, security interest or
liability, either individually and/or in the aggregate, in the opinion of the
Required Lenders, has had, or could reasonably be expected to have, a Material
Adverse Effect.

 

11.07  Security
Documents.  The Security
Documents shall cease to be in full force and effect, or shall cease to give
the Collateral Agent for the benefit of the Secured Creditors the Liens,
rights, powers and privileges purported to be created thereby (including,
without limitation, a perfected security interest in, and Lien on the
Collateral (other than any immaterial portion thereof), in favor of the
Collateral Agent, superior to and prior to the rights of all third Persons
(except as permitted by Section 10.01), and subject to no other Liens
(except as permitted by Section 10.01), or any Credit Party shall default
in the due performance or observance of any term, covenant or agreement on its
part to be performed or observed pursuant to any such Security Document and
such default shall continue (i) beyond the period of grace, if any,
specifically applicable thereto pursuant to the terms of such Security Document
or (ii) or, to the extent that the time period for the compliance with any such
term, covenant or agreement is not specified, and so long as the Collateral
Agent’s security interest in the Collateral (other than any immaterial portion
thereof) created pursuant to the respective Security Document is not impaired
by such default, beyond 15 days; or

 

11.08  Guaranties.  The Subsidiaries Guaranty or any provision
thereof shall cease to be in full force or effect as to any Subsidiary
Guarantor, or any Subsidiary Guarantor or any Person acting for or on behalf of
such Subsidiary Guarantor shall deny or disaffirm such Subsidiary Guarantor’s
obligations under the Subsidiaries Guaranty or any Subsidiary Guarantor shall
default in the due performance or observance of any term, covenant or agreement
on its part to be performed or observed pursuant to the Subsidiaries Guaranty;
or

 

11.09  Judgments.  One or more judgments or decrees shall be
entered against the Borrower or any Subsidiary of the Borrower involving in the
aggregate for the Borrower and its Subsidiaries a liability (to the extent not
paid or covered by a reputable and solvent insurance company) and such
judgments and decrees either shall be final and non-appealable or shall not be
vacated, discharged (by payment or otherwise) or stayed or bonded pending
appeal for any period of 30 consecutive days, and the aggregate amount of all
such judgments equals or exceeds $5,000,000; or

 

11.10  Change of Control.  A Change of Control shall occur;

 

then, and in any such
event, and at any time thereafter, if any Event of Default shall then be
continuing, the Administrative Agent, upon the written request of the Required
Lenders, shall by written notice to the Borrower, take any or all of the
following actions, without prejudice to the rights of the Administrative Agent,
any Lender or the holder of any Note to enforce its claims against any Credit
Party (provided that, if an Event of Default specified in Section 11.05
shall occur with respect to the Borrower, the result which would occur upon the
giving of written notice by the Administrative Agent as specified in clauses
(i) and (ii) below shall occur automatically without the giving of any such
notice):  (i) declare the Total
Commitment terminated, whereupon all Commitments of each Lender shall forthwith
terminate immediately and any Commitment Commission shall forthwith become due
and payable without any other notice of any kind; (ii) declare the principal of
and any accrued interest in respect of all Loans 

 

90

 

and the Notes and all
Obligations owing hereunder and thereunder to be, whereupon the same shall
become, forthwith due and payable without presentment, demand, protest or other
notice of any kind, all of which are hereby waived by each Credit Party; (iii)
terminate any Letter of Credit which may be terminated in accordance with its
terms; (iv) direct the Borrower to pay (and the Borrower agrees that upon
receipt of such notice, or upon the occurrence of an Event of Default specified
in Section 11.05 with respect to the Borrower, it will pay) to the
Collateral Agent at the Payment Office such additional amount of cash or Cash
Equivalents, to be held as security by the Collateral Agent, as is equal to the
aggregate Stated Amount of all Letters of Credit issued for the account of the
Borrower and then outstanding; (v) enforce, as Collateral Agent, all of the
Liens and security interests created pursuant to the Security Documents; and
(vi) apply any cash collateral held by the Administrative Agent pursuant to Section 4.02
to the repayment of the Obligations.

 

SECTION 12.  Definitions and Accounting Terms.

 

12.01  Defined Terms.  As used in this Agreement, the following
terms shall have the following meanings (such meanings to be equally applicable
to both the singular and plural forms of the terms defined):

 

“Acquired Entity or
Business” shall mean either (x) the assets constituting a business, division or
product line of any Person not already a Subsidiary of the Borrower or (y) 100%
of the Equity Interests of any such Person, which Person shall, as a result of
the acquisition of such Equity Interests, become a Wholly-Owned Subsidiary of
the Borrower (or shall be merged with and into the Borrower or a Subsidiary
Guarantor, with the Borrower or such Subsidiary Guarantor being the surviving
Person).

 

“Additional Security
Documents” shall have the meaning provided in Section 9.12.

 

“Adjusted Consolidated
Net Income” shall mean, for any period, Consolidated Net Income for such period
plus, without duplication, the sum of the amount of all net non-cash charges
(including, without limitation, depreciation, amortization, deferred tax
expense and non-cash interest expense) and net non-cash losses which were
included in arriving at Consolidated Net Income for such period, less the
amount of (i) all net non-cash gains and non-cash credits which were included
in arriving at Consolidated Net Income for such period and (ii) any cash
payments made during such period in respect of non-cash charges taken in a
prior period.

 

“Adjusted Consolidated Working Capital” shall
mean, at any time, Consolidated Current Assets (but excluding therefrom all
cash and Cash Equivalents) less Consolidated Current Liabilities at such time.

 

“Administrative Agent”
shall mean DBTCA, in its capacity as Administrative Agent for the Lenders
hereunder, and shall include any successor to the Administrative Agent
appointed pursuant to Section 13.09.

 

“Administrative
Questionnaire” shall mean an Administrative Questionnaire in a form supplied by
the Administrative Agent.

 

91

 

“Affected Loans” shall
have the meaning provided in Section 4.02(h).

 

“Affiliate” shall mean,
with respect to any Person, any other Person directly or indirectly controlling
(including, but not limited to, all directors and officers of such Person),
controlled by, or under direct or indirect common control with, such
Person.  A Person shall be deemed to
control another Person if such Person possesses, directly or indirectly, the
power (i) to vote 5% or more of the securities having ordinary voting power for
the election of directors (or equivalent governing body) of such Person or (ii)
to direct or cause the direction of the management and policies of such other
Person, whether through the ownership of voting securities, by contract or
otherwise; provided, however, that no Agent nor any Lender (nor
any Affiliate thereof) shall be considered an Affiliate of the Borrower or any
Subsidiary thereof.

 

“Agents” shall mean each
of the Administrative Agent, the Lead Arranger, the Syndication Agent and each
Documentation Agent and, for purposes of Sections 13 and 14.01, shall include
the Collateral Agent.

 

“Aggregate Consideration”
with respect to any Permitted Acquisition shall mean the aggregate
consideration (including (x) the aggregate amount paid and reasonably expected
to be paid (based on good faith projections prepared by the Borrower) on or
prior to the Initial Term Loan Maturity Date pursuant to any earn-out,
non-compete, consulting or deferred compensation or purchase price adjustments
or similar arrangements and (y) any Indebtedness assumed, incurred or issued in
connection therewith, but excluding any common stock of the Borrower or Qualified
Preferred Stock issued as part of such consideration) for such Permitted
Acquisitions.

 

“Agreement” shall mean
this Credit Agreement, as modified, supplemented, amended, restated (including
any amendment and restatement hereof), extended or renewed from time to time.

 

“Applicable Commitment
Commission Percentage” and “Applicable Margin” shall mean: (a) from and after
any Start Date to and including the corresponding End Date with respect to
Revolving Loans, Swingline Loans and Initial Term Loans, the respective
percentage per annum set forth below under the respective Type of Loans and
(ii) with respect to RL Commitment Commission the respective percentage per
annum set forth below under the caption “Applicable Commitment Percentage” and,
in each case, opposite the respective Level (i.e., Level 1, Level 2,
Level 3 or Level 4, as the case may be) indicated to have been achieved from
and after each day of delivery of any certificate delivered in accordance with
the following sentence indicating (each, a “Start Date”) to and including the
applicable End Date:

 

Applicable Margins
for Revolving Loans, Swingline Loans and Initial Term Loans

 

	
  Level

  	
   

  	
  Total Leverage Ratio

  	
   

  	
  Revolving Loans

  maintained as

  Base

  Rate Loans and

  Swingline Loans

  	
   

  	
  Revolving Loans

  maintained as

  Eurodollar Loans

  	
   

  	
  Initial Term

  Loans

  maintained as

  Eurodollar

  Loans

  	
   

  	
  Initial Term

  Loans

  maintained as

  Base Rate

  Loans

  	
   

  	
  Applicable

  Commitment

  Commission

  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  Less than 1.00:1.00

  	
   

  	
  0.00

  	
  %

  	
  1.00

  	
  %

  	
  2.00

  	
  %

  	
  1.00

  	
  %

  	
  0.250

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

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

  	
   

  	
  0.25

  	
  %

  	
  1.25

  	
  %

  	
  2.00

  	
  %

  	
  1.00

  	
  %

  	
  0.250

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

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

  	
   

  	
  0.50

  	
  %

  	
  1.50

  	
  %

  	
  2.00

  	
  %

  	
  1.00

  	
  %

  	
  0.375

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  Greater than or equal to 2.00:1.00

  	
   

  	
  0.75

  	
  %

  	
  1.75

  	
  %

  	
  2.25

  	
  %

  	
  1.25

  	
  %

  	
  0.375

  	
  %

  

 

92

 

The Total Leverage
Ratio shall be determined based on the delivery of a certificate of the
Borrower (each, a “Quarterly Pricing Certificate”) by the chief financial
officer of the Borrower to the Administrative Agent (with a copy to be sent by
the Administrative Agent to each Lender), within 45 days of the last day of any
fiscal quarter of the Borrower, which certificate shall set forth the calculation
of the Total Leverage Ratio as at the last day of the Test Period ended
immediately prior to the relevant Start Date (but determined on a Pro Forma
Basis solely to give effect to all Permitted Acquisitions (if any) consummated
on or prior to the date of delivery of such certificate and any Indebtedness
incurred or assumed in connection therewith) and the Applicable Margins and the
Applicable Commitment Commission Percentages which shall be thereafter
applicable (until same are changed or cease to apply in accordance with the
following sentences); provided  further that at the time of the
consummation of any Permitted Acquisition, the chief financial officer of the
Borrower shall deliver to the Administrative Agent a certificate setting forth
the calculation of the Total Leverage Ratio on a Pro  Forma Basis
(solely to give effect to all Permitted Acquisitions, if any, consummated on or
prior to the date of the delivery of such certificate and any Indebtedness
incurred or assumed in connection therewith) as of the last day of the last
Test Period ended prior to the date on which such Permitted Acquisition is
consummated for which financial statements have been made available (or were
required to be made available) pursuant to Section 9.01(a) or (b), as the
case may be, and the date of such consummation shall be deemed to be a Start
Date and the Applicable Margins and the Applicable Commitment Commission
Percentages which shall be thereafter applicable (until same are changed or
cease to apply in accordance with the following sentences) shall be based upon
the Total Leverage Ratio as so calculated. 
The Applicable Margins and the Applicable Commitment Commission
Percentages so determined shall apply, except as set forth in the succeeding
sentence, from the relevant Start Date to the earliest of (x) the date on which
the next Quarterly Pricing Certificate is delivered to the Administrative
Agent, (y) the date on which the next Permitted Acquisition is consummated or
(z) the next date to occur which occurs 45 days after the last day of a Test
Period (such earliest date, the “End Date”), at which time in the case of this
clause (z), if no certificate has been delivered to the Administrative Agent
indicating an entitlement to new Applicable Margins and new Applicable Commitment
Commission Percentages, as the case may be (and thus commencing a new Start
Date), Level 4 pricing shall be applicable until such time as the Borrower
delivers a new Quarterly Pricing Certificate to the Administrative Agent
indicating an entitlement to pricing margin lower than Level 4 pricing; it
being understood that such new pricing margin, if any, shall be effective from
and after the date of delivery of such Quarterly Pricing Certificate until the
earliest of the relevant date described in 

 

93

 

preceding clauses
(x), (y) or (z), as the case may be. 
Notwithstanding anything to the contrary contained above in this
definition, (x) Level 4 pricing shall apply at all times during which there
shall exist any Event of Default and (y) at all times prior to the date of
delivery of the financial statements pursuant to Section 9.01(b) for the
Borrower’s fiscal year ended on the Saturday closest to December 31, 2004,
Level 4 shall be applicable.

 

(b)                                 With
respect to any Tranche of Incremental Term Loans, the respective percentages
per annum relating to the respective Type of such Tranche of Incremental Term
Loans as set forth in the applicable Incremental Commitment Agreement (or, in
the case of any Tranche of Incremental Term Loans extended pursuant to more
than one Incremental Term Agreement, as may be provided in the first
Incremental Term Loan Commitment Agreement executed and delivered with respect
to such Tranche).

 

“Applicable ECF
Percentage” shall mean (i) 50% if (x) the Total Leverage Ratio as of the last
day of the most recent fiscal year of the Borrower is greater than 1.50 to 1.00
or (y) a Default or Event of Default then exists, (ii) 25% if the Consolidated
Leverage Ratio as of the last day of the most recent fiscal year of the
Borrower is equal to or less than 1.50 to 1.00 but the greater than or equal to
1.00:1.00 and (iii) 0% if the Consolidated Leverage Ratio as of the last day of
the most recent fiscal year of the Borrower is less than 1.00:1.00.

 

“Asset Sale” shall mean
any sale, transfer or other disposition by the Borrower or any of its
Subsidiaries to any Person (including by way of redemption by such Person)
other than to the Borrower or a Wholly-Owned Subsidiary of the Borrower of any
asset (including, without limitation, any capital stock or other securities of,
or equity interests in, another Person) other than sales of assets pursuant to
Sections 10.02(ii), (iii), (vii), (viii) and (ix).

 

“Assignment and
Assumption Agreement” shall mean an Assignment and Assumption Agreement
substantially in the form of Exhibit M (appropriately completed).

 

“Attributable
Indebtedness” in respect of a sale-leaseback transaction shall mean, as at the
time of determination, the present value (discounted at the interest rate borne
at such time by Revolving Loans maintained as Eurodollar Loans, compounded
annually) of the total obligations of the lessee for rental/lease payments
during the remaining term of the lease included in such sale-leaseback
transaction (including any period for which such lease has been extended);
provided, however, that if such sale-leaseback transaction results in a
Capitalized Lease Obligation, the amount of Indebtedness represented thereby
shall be determined in accordance with the definition of Capitalized Lease
Obligations.

 

“Authorized Officer” of
any Credit Party shall mean any of the Chief Executive Officer, the Chief
Financial Officer, the Treasurer, the Controller, any Assistant Treasurer or
the Director of Treasury or any other officer of such Credit Party which is
designated in writing to the Administrative Agent by any of the foregoing
officers of such Credit Party as being authorized to give such notices under
this Agreement.

 

“Bank Refinancing” shall
mean the refinancing and other transactions described in Sections 5.05(a).

 

“Bankruptcy Code” shall
have the meaning provided in Section 11.05.

 

94

 

“Base Rate” shall mean,
at any time, the higher of (i) the Prime Lending Rate and (ii) 1/2 of 1% in
excess of the overnight Federal Funds Rate at such time.

 

 “Base Rate Loan” shall mean (i) each Swingline
Loan and (ii) each other Loan designated or deemed designated as such by the
Borrower at the time of the incurrence thereof or conversion thereto.

 

“Borrower” shall have the
meaning provided in the first paragraph of this Agreement.

 

“Borrowing” shall mean
the borrowing of one Type of Loan of a single Tranche from all the Lenders
having Commitments of the respective Tranche (or from the Swingline Lender in
the case of Swingline Loans) on a given date (or resulting from a conversion or
conversions on such date) having in the case of Eurodollar Loans the same
Interest Period, provided that Base Rate Loans incurred pursuant to Section 1.10(b)
shall be considered part of the related Borrowing of Eurodollar Loans.

 

“Business Day” shall mean
(i) for all purposes other than as covered by clause (ii) below, any day except
Saturday, Sunday and any day which shall be in New York, New York, a legal
holiday or a day on which banking institutions are authorized or required by
law or other government action to close and (ii) with respect to all notices
and determinations in connection with, and payments of principal and interest
on, Eurodollar Loans, any day which is a Business Day described in clause (i)
above and which is also a day for trading by and between banks in U.S. dollar
deposits in the interbank Eurodollar market.

 

“Calculation Period”
shall mean, in the case of any Permitted Acquisition or Permitted Asset
Exchange, the Test Period most recently ended prior to the date of any such
transaction for which financial statements are available.

 

“Capital Expenditures”
shall mean, with respect to any Person, all expenditures by such Person which
should be capitalized in accordance with generally accepted accounting
principles and, without duplication, the amount of Capitalized Lease
Obligations incurred by such Person.

 

“Capitalized Lease
Obligations” shall mean, with respect to any Person, all rental obligations of
such Person which, under generally accepted accounting principles, are or will
be required to be capitalized on the books of such Person, in each case taken
at the amount thereof accounted for as indebtedness in accordance with such
principles.

 

“Cash Equivalents” shall
mean, as to any Person, (i) securities issued or directly and fully guaranteed
or insured by the United States or any agency or instrumentality thereof (provided
that the full faith and credit of the United States is pledged in support
thereof) having maturities of not more than one year from the date of
acquisition, (ii) marketable direct obligations issued by any state of the
United States or any political subdivision of any such state or any public
instrumentality thereof maturing within one year from the date of acquisition
thereof and, at the time of acquisition, having one of the two highest ratings
obtainable from either Standard & Poor’s Ratings Services or Moody’s
Investors Service, Inc., (iii) Dollar denominated time deposits, certificates
of deposit and bankers acceptances of any Lender or any 

 

95

 

commercial bank
having, or which is the principal banking subsidiary of a bank holding company
having, a long-term unsecured debt rating of at least “A” or the equivalent
thereof from Standard & Poor’s Ratings Services or “A2” or the equivalent
thereof from Moody’s Investors Service, Inc. with maturities of not more than
one year from the date of acquisition by such Person, (iv) repurchase
obligations with a term of not more than seven days for underlying securities
of the types described in clause (i) above entered into with any bank meeting
the qualifications specified in clause (iii) above, (v) commercial paper issued
by any Person incorporated in the United States rated at least A-1 or the
equivalent thereof by Standard & Poor’s Ratings Services or at least P 1 or
the equivalent thereof by Moody’s Investors Service, Inc. and in each case
maturing not more than one year after the date of acquisition by such Person,
and (vi) investments in money market funds substantially all of whose assets
are comprised of securities of the types described in clauses (i) through (v)
above.

 

“CERCLA” shall mean the
Comprehensive Environmental Response, Compensation, and Liability Act of 1980,
as the same has been amended and may hereafter be amended from time to time, 42
U.S.C. § 9601 et seq.

 

“Change of Control” shall
mean (x) that any “person” or “group” (as such terms are used in Sections 13(d)
and 14(d) of the Securities Exchange Act) is or becomes the “beneficial owner”
(as such term is defined in Rule 13d-3 and Rule 13d-5 under the Securities
Exchange Act), directly or indirectly, of 25% or more of the economic or voting
interest in the Borrower’s Equity Interests (as determined on a fully diluted
basis and measured by voting power rather than number of shares), (y) the first
day on which a majority of the members of the Board of Directors of the
Borrower are not Continuing Directors, or (z) a “change of control” or similar
event shall occur under any Permitted Subordinated Debt Documents.

 

“Change of Law” shall
have the meaning provided in Section 11.06.

 

“Code” shall mean the
Internal Revenue Code of 1986, as amended from time to time, and the
regulations promulgated and rulings issued thereunder.  Section references to the Code are to
the Code, as in effect at the date of this Agreement and any subsequent
provisions of the Code, amendatory thereof, supplemental thereto or substituted
therefor.

 

“Collateral” shall mean
all property (whether real or personal) with respect to which any security
interests have been granted (or are purported to be granted) pursuant to any
Security Document, including, without limitation, all Pledge Agreement Collateral,
all Security Agreement Collateral, all Mortgaged Properties and all cash and
Cash Equivalents delivered as collateral pursuant to Section 4.02 or 11.

 

“Collateral Agent” shall
mean the Administrative Agent acting as collateral agent for the Secured
Creditors pursuant to the Security Documents.

 

“Commitment” shall mean
any of the commitments of any Lender, i.e., whether the Initial Term Loan
Commitment, the Revolving Loan Commitment or an Incremental Term Loan
Commitment.

 

“Consolidated Current Assets”
shall mean, at any time, the consolidated current assets of the Borrower and
its Subsidiaries at such time.

 

96

 

“Consolidated Current Liabilities” shall
mean, at any time, the consolidated current liabilities of the Borrower and its
Subsidiaries at such time, but excluding the current portion of any
Indebtedness under this Agreement and the current portion of any other
long-term Indebtedness which would otherwise be included therein.

 

“Consolidated EBITDA”
shall mean, for any period, Consolidated Net Income for such period, adjusted
by (A) adding thereto (i) in each case to the extent actually deducted in
determining Consolidated Net Income for such period, consolidated interest
expense of the Borrower and its Subsidiaries and provision for income taxes,
adjusted to exclude for such period (x) any extraordinary gains or losses and
(y) any gains or losses from sales of assets other than from sales of inventory
in the ordinary course of business, (ii) the amount of all amortization of
intangibles and depreciation that were deducted in arriving at Consolidated Net
Income for such period, (iii) the amount of all up front fees and expenses
incurred in connection with the execution and delivery of this Agreement to the
extent that same were deducted in arriving at Consolidated Net Income for such
period and (iv) the amount of all other non-cash charges that were deducted in
arriving at Consolidated Net Income for such period and (B) subtracting
therefrom the amount of all cash payments made in respect of such period to the
extent same relate to a non-cash charge incurred in a previous period which was
added back to Consolidated EBITDA in such previous period pursuant to clause
(A) above in this definition.

 

“Consolidated
Indebtedness” shall mean, at any time, the sum of (without duplication) (i) all
Indebtedness of the Borrower and its Subsidiaries as would be required to be
reflected on the liability side of a balance sheet of such Person at such time
in accordance with generally accepted accounting principles as determined on a
consolidated basis and (ii) all Indebtedness of the Borrower and its
Subsidiaries of the type described in clauses (ii) and (vii) of the definition
of Indebtedness contained herein; provided that for purposes of this
definition (i) the amount of Indebtedness in respect of Interest Rate
Protection Agreements and Other Hedging Agreements shall be at any time the
unrealized net loss position, if any, of the Borrower and/or its Subsidiaries
thereunder on a marked-to-market basis determined no more than one month prior
to such time and (ii) the amount of Indebtedness in respect of letters of
credit, bankers’ acceptances and similar obligations shall be limited to the
aggregate amount of all funded letters of credit, bankers’ acceptances and
similar obligations issued or extended for the account of the Borrower or any
of its Subsidiaries that have not been reimbursed by the Borrower or any of its
Subsidiaries.

 

“Consolidated Interest
Coverage Ratio” shall mean, for any period, the ratio of Consolidated EBITDA to
Consolidated Interest Expense for such period.

 

“Consolidated Interest
Expense” shall mean, for any period, the total consolidated interest expense of
the Borrower and its Subsidiaries for such period (calculated without regard to
any limitations on the payment thereof and including without limitation, all
interest expense attributable to the Hinky Dinky Subsidiary Redemption Notes)
plus, without duplication, that portion of Capitalized Lease Obligations of the
Borrower and its Subsidiaries representing the interest factor for such period;
provided that the amortization of deferred financing, legal and
accounting costs with respect to this Agreement shall be excluded from
Consolidated Interest Expense to the extent same would otherwise have been
included therein.

 

97

 

“Consolidated Net Income”
shall mean, for any period, the net income (or loss) of the Borrower and its
Subsidiaries for such period, determined on a consolidated basis (after any
deduction for minority interests), provided that (i) in determining
Consolidated Net Income, the net income of any other Person which is not a
Subsidiary of the Borrower or is accounted for by the Borrower by the equity
method of accounting shall be included only to the extent of the payment of
cash dividends or cash distributions by such other Person to the Borrower or a
Subsidiary thereof during such period and (ii) the net income of any Subsidiary
of the Borrower shall be excluded to the extent that the declaration or payment
of cash dividends or similar cash distributions by that Subsidiary of that net
income is not at the date of determination permitted by operation of its
charter or any agreement, instrument or law applicable to such Subsidiary.

 

“Consolidated Rental Expense” shall mean, for
any period, the sum of (x) the total rental expense of the Borrower and its
Subsidiaries determined on a consolidated basis in accordance with generally
accepted accounting principles and (y) to the extent not already included in
preceding clause (x), any payments made by the Borrower or any of its
Subsidiaries pursuant to any guarantees of leases made by the Borrower or any
of its Subsidiaries.

 

“Consolidated Senior Secured Indebtedness”
shall mean all Consolidated Indebtedness of the Borrower and its Subsidiaries
that is secured by a Lien on any property owned by the Borrower or any of its
Subsidiaries, provided that Consolidated Senior Secured Indebtedness
shall not include any Consolidated Indebtedness that is subordinated in right
of payment to the Obligations and the Guaranteed Obligations (as defined in the
Subsidiaries Guaranty) pursuant to effective subordination provisions that are
satisfactory to the Administration Agent.

 

“Consolidated Working
Capital Ratio” shall mean, at any time, the ratio of (i) (x) the consolidated
net trade accounts receivable of the Borrower and the Subsidiary Guarantors
plus (y) the consolidated inventory of the Borrower and the Subsidiary
Guarantors at such time (valued on a First-in First-out (FIFO) basis), in each
case only to the extent such accounts receivables and inventory conform to the
representations and warranties contained in the Security Agreement (including
by the Collateral Agent having a first priority perfected security interest
therein subject only to Permitted Liens) and which at all times continue to be
acceptable to the Collateral Agent in its reasonable judgment to (ii) the sum
of (x) the aggregate amount of all principal of Loans outstanding at such time
plus (y) all Letter of Credit Outstandings at such time plus (z) the aggregate
principal amount of all secured Indebtedness (other than Capitalized Lease
Obligations) of the Borrower and its Subsidiaries outstanding at such time
pursuant to Section 10.04(x).

 

“Contingent Obligation”
shall mean, as to any Person, (A) any obligation of such Person as a result of
such Person being a general partner of any other Person, unless the underlying
obligation is expressly made non-recourse as to such general partner, and (B)
any obligation of such Person guaranteeing or intended to guarantee any
Indebtedness, leases, dividends or other obligations (“primary obligations”) of
any other Person (the “primary obligor”) in any manner, whether directly or
indirectly, including, without limitation, any obligation of such Person,
whether or not contingent, (i) to purchase any such primary obligation or any
property constituting direct or indirect security therefor, (ii) to advance or
supply funds (x) for the purchase or payment of any such primary obligation or
(y) to maintain working capital 

 

98

 

or equity capital
of the primary obligor or otherwise to maintain the net worth or solvency of
the primary obligor, (iii) to purchase property, securities or services
primarily for the purpose of assuring the owner of any such primary obligation
of the ability of the primary obligor to make payment of such primary
obligation or (iv) otherwise to assure or hold harmless the holder of such
primary obligation against loss in respect thereof; provided, however,
that the term Contingent Obligation shall not include endorsements of
instruments for deposit or collection in the ordinary course of business.  The amount of any Contingent Obligation shall
be deemed to be an amount equal to the stated or determinable amount of the
primary obligation in respect of which such Contingent Obligation is made or,
if not stated or determinable, the maximum reasonably anticipated liability in
respect thereof (assuming such Person is required to perform thereunder) as
determined by such Person in good faith.

 

“Continuing Directors”
shall mean the directors of the Borrower on the Effective Date and each other
director of the Borrower whose nomination for election to the Board of
Directors of the Borrower is recommended by a majority of the then Continuing
Directors.

 

“Credit Documents” shall
mean this Agreement and, after the execution and delivery thereof pursuant to
the terms of this Agreement, each Note, the Subsidiaries Guaranty and each
Security Document.

 

“Credit Event” shall mean
the making of any Loan or the issuance of any Letter of Credit.

 

“Credit Party” shall mean
the Borrower and each Subsidiary Guarantor.

 

“Customer Lease
Arrangements” shall mean arrangements between the Borrower and/or any of its
Subsidiaries and their respective customers, made in the ordinary course of
business and consistent with past practices, whereby the Borrower and/or such
Subsidiary enters into a lease of Real Property with a third Person landlord
and, substantially concurrent therewith, subleases such Real Property to such
customers.

 

“DBSI” shall mean
Deutsche Bank Securities Inc., in its individual capacity, and any successor
thereto by merger, consolidation or otherwise.

 

“DBTCA” shall mean
Deutsche Bank Trust Company Americas, in its individual capacity, and any
successor corporation thereto by merger, consolidation or otherwise.

 

“Default” shall mean any
event, act or condition which with notice or lapse of time, or both, would
constitute an Event of Default.

 

“Defaulting Lender” shall
mean any Lender with respect to which a Lender Default is in effect.

 

“Distribution Revenues”
for any fiscal year of the Borrower shall mean the Borrower’s revenues
generated from its and its Subsidiaries’ operations in the “Food Distribution”
segment, as reported in the Borrower’s Report on Form 10-K filed with the SEC
for such fiscal year.

 

99

 

“Dividend” shall mean,
with respect to any Person, that such Person has declared or paid a dividend,
distribution or returned any equity capital to its stockholders, partners or
members or authorized or made any other distribution, payment or delivery of
property (other than common equity of such Person) or cash to its stockholders,
partners or members as such, or redeemed, retired, purchased or otherwise
acquired, directly or indirectly, for consideration any Equity Interests
outstanding on or after the Effective Date, or set aside any funds for any of
the foregoing purposes, or shall have permitted any of its Subsidiaries to
purchase or otherwise acquire for consideration any Equity Interests of such
Person outstanding on or after the Effective Date.  Without limiting the foregoing, “Dividends”
with respect to any Person shall also include all payments made or required to
be made by such Person with respect to any stock appreciation rights, plans,
equity incentive or achievement plans or any similar plans or setting aside of
any funds for the foregoing purposes other than any such payment made (i) in
the form of common equity of the Borrower or (ii) to employees of the Borrower
and its Subsidiaries to the extent such payment has actually reduced
Consolidated Net Income.

 

“Documentation Agent”
shall have the meaning provided in the first paragraph of this Agreement.

 

“Dollars” and the sign “$”
shall each mean freely transferable lawful money of the United States.

 

“Domestic Subsidiary”
shall mean, as to any Person, each Subsidiary of such Person that is
incorporated under the laws of (i) the United States or any State or territory
thereof or (ii) the District of Columbia.

 

“Drawing” shall have the
meaning provided in Section 2.05(b).

 

“Effective Date” shall
have the meaning provided in Section 14.10.

 

“Eligible Transferee”
shall mean and include a commercial bank, an insurance company, a finance
company, a financial institution or any fund that invests in loans, but in any
event excluding the Borrower and its Subsidiaries.

 

“End Date” shall have the
meaning provided in the definition of “Applicable Commitment Commission” and “Applicable
Margin”.

 

“Environmental Claims”
shall mean any and all administrative, regulatory or judicial actions, suits,
demands, demand letters, directives, claims, liens, notices of noncompliance or
violation, investigations or proceedings relating in any way to any
Environmental Law or any permit issued, or any approval given, under any such
Environmental Law (hereafter, “Claims”), including, without limitation, (a) any
and all Claims by governmental or regulatory authorities for enforcement,
cleanup, removal, response, remedial or other actions or damages pursuant to
any applicable Environmental Law, and (b) any and all Claims by any third party
seeking damages, contribution, indemnification, cost recovery, compensation or
injunctive relief in connection with alleged injury or threat of injury to
health, safety or the environment due to the presence of Hazardous Materials.

 

100

 

“Environmental Law” shall
mean any Federal, state, foreign or local statute, law, rule, regulation,
ordinance, code, guideline, written policy and rule of common law now or
hereafter in effect and in each case as amended, and any judicial or
administrative interpretation thereof, including any judicial or administrative
order, consent decree or judgment, relating to the environment, employee health
and safety or Hazardous Materials, including, without limitation, CERCLA; RCRA;
the Federal Water Pollution Control Act, 33 U.S.C. § 1251 et seq.; the
Toxic Substances Control Act, 15 U.S.C. § 2601 et seq.; the Clean Air Act,
42 U.S.C. § 7401 et seq.; the Safe Drinking Water Act, 42 U.S.C. § 3803
et seq.; the Oil Pollution Act of 1990, 33 U.S.C. § 2701 et seq.; the
Emergency Planning and the Community Right-to-Know Act of 1986, 42 U.S.C. § 11001
et seq.; the Hazardous Material Transportation Act, 49 U.S.C. § 1801 et
seq.; the Occupational Safety and Health Act, 29 U.S.C. § 651 et seq.; and
any state and local or foreign counterparts or equivalents, in each case as
amended from time to time.

 

“Equity Interest” of any
Person shall mean any and all shares, interests, rights to purchase, warrants,
options, participations or other equivalents of or interest in (however
designated) equity of such Person, including, without limitation, any preferred
stock, any limited or general partnership interest and any limited liability
company membership interest.

 

“ERISA” shall mean the
Employee Retirement Income Security Act of 1974, as amended from time to time,
and the regulations promulgated and rulings issued thereunder.  Section references to ERISA are to
ERISA, as in effect at the date of this Agreement and any subsequent provisions
of ERISA, amendatory thereof, supplemental thereto or substituted therefor.

 

“ERISA Affiliate” shall
mean each person (as defined in Section 3(9) of ERISA) which together with
the Borrower or a Subsidiary of the Borrower would be deemed to be a “single
employer” within the meaning of Section 414(b), (c), (m) or (o) of the
Code.

 

“Eurodollar Loan” shall
mean each Loan (other than any Swingline Loan) designated as such by the
Borrower at the time of the incurrence thereof or conversion thereto.

 

“Eurodollar Rate” shall
mean (a) the offered quotation to first-class banks in the New York interbank
Eurodollar market by the Administrative Agent for Dollar deposits of amounts in
immediately available funds comparable to the outstanding principal amount of
the Eurodollar Loan of the Administrative Agent with maturities comparable to
the Interest Period applicable to such Eurodollar Loan commencing two Business
Days thereafter as of 11:00 A.M. (New York time) on the applicable Interest
Determination Date, divided (and rounded upward to the nearest 1/16 of 1%) by
(b) a percentage equal to 100% minus then stated maximum rate of all reserve
requirements (including, without limitation, any marginal, emergency,
supplemental, special or other reserves required by applicable law) applicable
to any member bank of the Federal Reserve System in respect of Eurocurrency
funding or liabilities as defined in Regulation D (or any successor category of
liabilities under Regulation D).

 

“Event of Default” shall
have the meaning provided in Section 11.

 

“Excess Cash Flow” shall mean, for any
period, the remainder of (a) the sum of, without duplication, (i) Adjusted
Consolidated Net Income for such period and (ii) the decrease,

 

101

 

if any, in Adjusted Consolidated Working Capital from the first day to
the last day of such period, minus (b) the sum of, without duplication, (i) the
amount of all Capital Expenditures made by the Borrower and its Subsidiaries
during such period (other than Capital Expenditures to the extent financed with
equity proceeds, Asset Sale proceeds, insurance proceeds or Indebtedness), (ii)
the aggregate amount of all cash payments made in respect of all Permitted
Acquisitions consummated by the Borrower and its Subsidiaries during such period
(other than any such payments to the extent financed with equity proceeds,
Asset Sale proceeds, insurance proceeds or Indebtedness), (iii) the aggregate
amount of permanent cash principal payments of Indebtedness for borrowed money
of the Borrower and its Subsidiaries during such period (other than (A)
repayments to the extent made with Asset Sale proceeds, equity proceeds,
insurance proceeds or Indebtedness, (B) repayments of Loans, provided
that repayments of Loans shall be deducted in determining Excess Cash Flow to
the extent such repayments were (x) required as a result of an Scheduled
Incremental Term Loan Repayment under Section 4.02(b) or (y) made as a
voluntary prepayment with internally generated funds (but in the case of a
voluntary prepayment of Revolving Loans or Swingline Loans, only to the extent
accompanied by a voluntary permanent reduction to the Total Revolving Loan
Commitment in an amount equal to such prepayment and (C) payments pursuant to
the Refinancing)), (iv) the aggregate amount of all cash Dividends paid during
such period to the extent permitted under Sections 10.03(iii), (iv) and (v)
and, (v) the increase, if any, in Adjusted Consolidated Working Capital from
the first day to the last day of such period.

 

“Excess Cash Payment Date” shall mean the
date occurring 90 days after the last day of each fiscal year of the Borrower
(commencing with the fiscal year of the Borrower ended December 31, 2005).

 

“Excess Cash Payment
Period” shall mean with respect to prepayments required on each Excess Cash
Payment Date, the fiscal year of the Borrower immediately preceding such Excess
Cash Payment Date.

 

“Existing Credit
Agreement” shall mean the Credit Agreement, dated as of December 19, 2000,
as amended to the Effective Date, among the Borrower, the banks signatory
thereto, Harris Trust and Savings Bank and U.S. National Bank Association, as
Syndication Agents, General Electric Capital Corporation as Documentation Agent
and Deutsche Bank Trust Company Americas (f/k/a Bankers Trust Company) as
Administrative Agent.

 

“Existing Indebtedness”
shall mean all Indebtedness of the Borrower and its Subsidiaries set forth in Section 8.21.

 

“Existing Letters of
Credit” shall have the meaning provided in Section 2.01(a).

 

“Existing Non-Material
Subsidiary” shall mean any Subsidiary of the Borrower designated as an “Existing
Non-Material Subsidiary” on Schedule 8.14.

 

“Existing Senior
Subordinated Note Documents” shall mean the Existing Senior Subordinated Note
Indenture and all other documents executed and delivered with respect to the
Existing Senior Subordinated Notes and the Existing Senior Subordinated Note
Indenture, as in 

 

102

 

effect on the
Initial Borrowing Date and as the same may be amended, modified or supplemented
from time to time in accordance with the terms hereof and thereof.

 

“Existing Senior
Subordinated Note Indenture” shall mean the Indenture, dated as of April 24,
1998, among the Borrower, (the Subsidiary Guarantors named therein and U.S.
Bank Trust National Association, as Trustee, as in effect on the Initial
Borrowing Date and as thereafter amended, modified or supplemented from time to
time.

 

 “Existing Senior Subordinated Notes” shall
mean the Borrower’s 81⁄2% Senior Subordinated Notes due 2008, issued pursuant to
the Existing Senior Subordinated Note Indenture .

 

“Existing Senior
Subordinated Notes Redemption” shall mean the redemption of the Existing Senior
Subordinated Notes as contemplated in Section 9.17(a).

 

“Facing Fee” shall have
the meaning provided in Section 3.01(e).

 

“Federal Funds Rate”
shall mean, for any period, a fluctuating interest rate equal for each day
during such period to the weighted average of the rates on overnight federal
funds transactions with members of the Federal Reserve System arranged by
federal funds brokers, as published for such day (or, if such day is not a
Business Day, for the next 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 for such day on such transactions
received by the Administrative Agent from three Federal Funds brokers of
recognized standing selected by the Administrative Agent.

 

“Fees” shall mean all
amounts payable pursuant to or referred to in Section 3.01.

 

“Financial Covenants”
shall mean each of the financial covenants contained in Sections 10.08, 10.09,
10.10 and 10.11.

 

“Foreign Pension Plan”
shall mean any plan, fund (including, without limitation, any superannuation
fund) or other similar program established or maintained outside the United
States by the Borrower or any one or more of its Subsidiaries primarily for the
benefit of employees of the Borrower or such Subsidiaries residing outside the
United States, which plan, fund or other similar program provides, or results
in, retirement income, a deferral of income in contemplation of retirement or
payments to be made upon termination of employment, and which plan is not
subject to ERISA or the Code.

 

“Foreign Subsidiary”
shall mean, as to any Person, each Subsidiary of such Person which is not a
Domestic Subsidiary.

 

“Hazardous Materials”
shall mean (a) any petroleum or petroleum products, radioactive materials,
asbestos in any form that is or could become friable, urea formaldehyde foam
insulation, dielectric fluid containing levels of polychlorinated biphenyls,
and radon gas; (b) any chemicals, materials or substances defined as or
included in the definition of “hazardous substances,” “hazardous waste,” “hazardous
materials,” “extremely hazardous substances,” “restricted hazardous waste,” “toxic
substances,” “toxic pollutants,” “contaminants,” or 

 

103

 

“pollutants,” or
words of similar import, under any applicable Environmental Law; and (c) any
other chemical, material or substance, the exposure to, or Release of which is
prohibited, limited or regulated by any governmental authority.

 

“Hinky Dinky Operating
Agreements” shall mean the respective operating agreement of each Hinky Dinky
Subsidiary as in effect on the date hereof.

 

“Hinky Dinky Subsidiaries”
shall mean each of H.D. Beatrice L.L.C., H.D. Crete L.L.C., Hinky Dinky Falls
City L.L.C. and Hinky Dinky O’Neill L.L.C., but, in each case, only while the
respective such Person is a Domestic Subsidiary, but not a Wholly-Owned
Subsidiary, of the Borrower.

 

“Hinky Dinky Subsidiary
Investment” shall mean, as to any Person, any Investment in any Hinky Dinky
Subsidiary (other than loans or advances for travel advances and other similar
cash advances made to employees and sales representatives in the ordinary
course of business) including, without limitation, through the purchase of
stock or obligations of any Hinky Dinky Subsidiary, the acquisition of any
substantial part of the assets or business of any Hinky Dinky Subsidiary (or
division thereof), being or becoming liable on any guaranty in respect of any
obligation of any Hinky Dinky Subsidiary, or subordinating any claim or demand
such Person may have to the claim or demand of any other creditor of a Hinky
Dinky Subsidiary.

 

“Hinky Dinky Subsidiary
Redemption Notes” shall mean each note issued by a Hinky Dinky Subsidiary
pursuant to, and in accordance with the requirements of, any Hinky Dinky
Operating Agreement in connection with the redemption by such Hinky Dinky
Subsidiary of its outstanding membership interests.

 

“Incremental Commitment
Agreement” shall mean an Incremental Commitment Agreement substantially in the
form of Exhibit C (appropriately completed and with such modifications as may
be acceptable to the Administrative Agent).

 

“Incremental Commitment
Expiry Date” shall mean (i) in the case of requests for Incremental Term Loan
Commitments, the Revolving Loan Maturity Date and (ii) in the case of requests
for Incremental Revolving Commitments, November 12, 2008.

 

“Incremental Commitments”
shall mean, collectively, the Incremental Revolving Loan Commitments and the
Incremental Term Loan Commitments.

 

“Incremental Lender”
shall have the meaning provided in Section 1.14(b).

 

“Incremental Revolving
Loan Commitment” shall mean, for each Lender, any commitment by such Lender to
make Revolving Loans pursuant to Section 1.01(b) as agreed to by such
Lender in the respective Incremental Commitment Agreement delivered pursuant to
Section 1.14; it being understood, however, that on each date upon which
an Incremental Revolving Loan Commitment of any Lender becomes effective, such
Incremental Revolving Loan Commitment of such Lender shall be added to (and
thereafter become a part of) the Revolving Loan Commitment of such Lender for
all purposes of this Agreement as contemplated by Section 1.14.

 

104

 

“Incremental Term Loan”
shall have the meaning provided in Section 1.01(e).

 

“Incremental Term Loan
Borrowing Date” shall mean each date on which Incremental Term Loans are
incurred pursuant to Section 1.01(e).

 

“Incremental Term Loan
Commitment” shall mean, for the respective Incremental Lender, the commitment
of such Incremental Lender to make Incremental Term Loans pursuant to Section 1.01(e)
on a given Incremental Term Loan Borrowing Date, as such commitment (x) is set
forth in the respective Incremental Commitment Agreement delivered pursuant to Section 1.14(b)
and (y) may be reduced pursuant to Section 4.02 or terminated pursuant to
Sections 3.03 and/or 11.

 

“Incremental Term Loan
Maturity Date” shall mean for any Tranche of Incremental Term Loans, the
maturity date for such Tranche of Incremental Term Loans set forth in the Incremental
Commitment Agreement relating thereto, provided that the final maturity
date for all Incremental Term Loans of a given Tranche shall be the same date.

 

“Incremental Term Note”
shall have the meaning provided in Section 1.05(a).

 

“Indebtedness” shall
mean, as to any Person, without duplication, (i) all indebtedness (including
principal, interest, fees and charges) of such Person for borrowed money or for
the deferred purchase price of property or services, (ii) the maximum amount
available to be drawn under all letters of credit, bankers’ acceptances and
similar obligations issued for the account of such Person and all unpaid
drawings in respect of such letters of credit, bankers’ acceptances and similar
obligations, (iii) all Indebtedness of the types described in clause (i), (ii),
(iv), (v), (vi) or (vii) of this definition secured by any Lien on any property
owned by such Person, whether or not such Indebtedness has been assumed by such
Person (provided that, if the Person has not assumed or otherwise become
liable in respect of such Indebtedness, such Indebtedness shall be deemed to be
in an amount equal to the lesser of the aggregate amount of such Indebtedness
and the fair market value of the property to which such Lien relates as
determined in good faith by such Person), (iv) the aggregate amount of all
Capitalized Lease Obligations of such Person, (v) all obligations of such
Person to pay a specified purchase price for goods or services, whether or not
delivered or accepted, i.e., take-or-pay and similar obligations, (vi) all
Contingent Obligations of such Person and (vii) all obligations under any
Interest Rate Protection Agreement, any Other Hedging Agreement or under any
similar type of agreement.  Notwithstanding
the foregoing, Indebtedness shall not include trade payables and accrued
expenses incurred by any Person in accordance with customary practices and in
the ordinary course of business of such Person.

 

“Initial Borrowing Date”
shall mean the date occurring on or after the Effective Date on which the
initial Borrowing of Loans occurs.

 

“Initial Term Loan” shall have the meaning
provided in Section 1.01(a).

 

“Initial Term Loan Commitment” shall mean,
for each Lender, the amount set forth opposite such Lender’s name in Schedule 1.01
directly below the column entitled “Initial Term Loan Commitment”.

 

105

 

“Initial Term Loan
Maturity Date” shall mean November 12, 2010.

 

“Initial Term Note” shall have the meaning
provided in Section 1.05(a).

 

“Initial TL Commitment
Commission” shall have the meaning provided in Section 3.01(c).

 

“Initial TL Commitment
Termination Date” shall mean the earlier of (i) the Redemption Date and (ii)
the date occurring 45 days following the Initial Borrowing Date.

 

“Initial TL Percentage” shall mean of any
Lender a fraction (expressed as a percentage) the numerator of which is the
Initial Term Loan Commitment of such Lender on the Initial Borrowing Date
(without giving effect to any reduction thereto pursuant to Sections 3.03, 4.02
and/or 11) and the denominator is the Total Initial Term Loan Commitment on the
Initial Borrowing Date (without giving effect to any reduction to the Term Loan
Commitments pursuant to Sections 3.03, 4.02 and/or 11).

 

“Intercompany Loan” shall
have the meaning provided in Section 10.05(viii).

 

“Intercompany Note” shall
mean a promissory note, in the form of Exhibit N, evidencing Intercompany
Loans.

 

“Interest Determination
Date” shall mean, with respect to any Eurodollar Loan, the second Business Day
prior to the commencement of any Interest Period relating to such Eurodollar
Loan.

 

“Interest Period” shall
have the meaning provided in Section 1.09.

 

“Interest Rate Protection
Agreement” shall mean any interest rate swap agreement, interest rate cap agreement,
interest collar agreement, interest rate hedging agreement or other similar
agreement or arrangement.

 

“Investments” shall have
the meaning provided in Section 10.05.

 

“Issuing Lender” shall
mean (i) DBTCA (which, for purposes of this definition, also shall include any
banking affiliate of DBTCA, including Deutsche Bank AG New York Branch, which
may agree to issue Letters of Credit under this Agreement), (ii) any other
Lender which, at the request of the Borrower and with the consent of the Administrative
Agent, agrees (at such Lender’s sole discretion) to become an Issuing Lender
for the purpose of issuing Letters of Credit pursuant to Section 2 and
(iii) with respect to Existing Letters of Credit only, Harris Trust and U.S.
Bank.  On the Initial Borrowing Date (x)
the sole issuing Lenders in respect of standby Letter of Credit are DBTCA and,
with respect to Existing Letters of Credit only, U.S. Bank and Harris Trust and
(y) the sole Issuing Lender in respect of trade Letters of Credit is Deutsche Bank
AG, New York Branch.

 

“L/C Supportable
Obligations” shall mean (i) obligations of the Borrower or any of its
Subsidiaries with respect to workers compensation, surety bonds and other
similar statutory obligations and (ii) such other obligations of the Borrower
or any of its Subsidiaries (other than 

 

106

 

in respect of
Existing Senior Subordinated Notes or Permitted Subordinated Debt) as are
reasonably acceptable to the respective Issuing Lender and otherwise permitted
to exist pursuant to the terms of this Agreement.

 

“Lead Arranger” shall
mean DBSI in its capacity as the Sole Lead Arranger and Sole Book Running
Manager with respect to this Agreement and the other Credit Documents.

 

“Leaseholds” of any Person
shall mean all the right, title and interest of such Person as lessee or
licensee in, to and under leases or licenses of land, improvements and/or
fixtures.

 

“Lender” shall mean each
financial institution listed on Schedule 1.01, each Incremental Lender and
any Person that becomes a “Lender” hereunder pursuant to Section 1.13,
1.14 or 14.04(b).

 

“Lender Default” shall
mean (i) the wrongful refusal (which has not been retracted) or the failure of
a Lender to make available its portion of any Borrowing (including any
Mandatory Borrowing) or to fund its portion of any unreimbursed payment under Section 2.04(c)
or (ii) a Lender having notified in writing the Borrower and/or the
Administrative Agent that such Lender does not intend to comply with its
obligations under Section 1.01 or 2 in circumstances where such
non-compliance would constitute a breach of such Lender’s obligations under the
respective Section.

 

“Letter of Credit” shall
have the meaning provided in Section 2.01(a).

 

“Letter of Credit Fee”
shall have the meaning provided in Section 3.01(d).

 

“Letter of Credit
Outstandings” shall mean, at any time, the sum (without duplication) of (i) the
Stated Amount of all outstanding Letters of Credit and (ii) the aggregate
amount of all Unpaid Drawings in respect of all Letters of Credit.

 

“Letter of Credit Request”
shall have the meaning provided in Section 2.03(a).

 

“Lien” shall mean any
mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance,
lien (statutory or other), preference, priority or other security agreement of
any kind or nature whatsoever (including, without limitation, any conditional
sale or other title retention agreement, any financing or similar statement or
notice filed under the UCC or any other similar recording or notice statute,
and any lease having substantially the same effect as any of the foregoing).

 

“Loan” shall mean each
Initial Term Loan, each Incremental Term Loan (if any), each Revolving Loan and
each Swingline Loan.

 

 “Majority Lenders” of any Tranche shall mean
those Non-Defaulting Lenders which would constitute the Required Lenders under,
and as defined in, this Agreement if all outstanding Obligations under the
other Tranches under this Agreement were repaid in full and all Commitments
with respect thereto were terminated.

 

107

 

“Management Agreements”
shall mean all material agreements with members of, or with respect to, the
management of the Borrower or any of its Subsidiaries.

 

“Mandatory Borrowing”
shall have the meaning provided in Section 1.01(d).

 

“Margin Stock” shall have
the meaning provided in Regulation U.

 

“Material Adverse Effect”
shall mean (i) a material adverse effect on the property, assets, nature of
assets, liabilities or condition (financial or otherwise) of the Borrower or of
the Borrower and its Subsidiaries taken as a whole or (ii) a material adverse
effect (x) on the rights or remedies of the Lenders or any Agent hereunder or
under any other Credit Document or (y) on the ability of any Credit Party to
perform its obligations to the Lenders or any Agent hereunder or under any
other Credit Document.

 

“Material Asset Sale”
shall mean any Asset Sale or series of related Assets Sales (i.e., separate
assets being sold, transferred or otherwise disposed of as part of an
identifiable group of assets and within a reasonably limited time period) where
the aggregate consideration therefor is equal to, or in excess of, $5,000,000.

 

“Material Permitted
Acquisition” shall mean any Permitted Acquisition or any series of related
Permitted Acquisitions, where the Aggregate Consideration for such Permitted
Acquisition or series of related Permitted Acquisitions, as the case may be,
equals or exceeds $5,000,000.

 

“Material Recovery Event”
shall mean any Recovery Event where the aggregate cash insurance proceeds or
awards received therefrom is equal to, or in excess of $5,000,000.

 

 “Maturity Date” shall mean, with respect to
any Tranche of Loans, the Initial Term Loan Maturity Date, the Revolving Loan
Maturity Date, the Incremental Term Loan Maturity Date for such Tranche of
Loans or the Swingline Expiry Date, as the case may be.

 

“Maximum Eurodollar
Borrowing Number” shall mean (x) in the case of Initial Term Loans, 10, (y) in
the case of Revolving Loans, 10, and (z) in the case of any Tranche of
Incremental Term Loans, 10 or such other number as may be specified as the
Maximum Eurodollar Borrowing Number for such Tranche in the respective
Incremental Commitment Agreement (although any Incremental Commitment Agreement
providing for Incremental Term Loans which will be added to an existing Tranche
shall not specify a Maximum Eurodollar Borrowing Number for such Tranche which
differs from the Maximum Eurodollar Borrowing Number already applicable to such
Tranche).

 

“Maximum Swingline Amount”
shall mean $20,000,000.

 

“Minimum Borrowing Amount”
shall mean (i) for Swingline Loans, $100,000, (ii) for Revolving Loans,
$1,000,000, (iii) for Initial Term Loans, $5,000,000 and (iv) for Incremental
Term Loans, $5,000,000 or such other amount as may be specified in the
respective Incremental Commitment Agreement (although an Incremental Commitment
Agreement providing for the addition of Incremental Term Loans to an existing
Tranche may not specify a 

 

108

 

different Minimum
Borrowing Amount from that which already applies to the respective Tranche).

 

“Mortgage” shall mean a
mortgage, leasehold mortgage, deed of trust, leasehold deed of trust, deed to
secure debt, leasehold deed to secure debt or similar security instrument.

 

“Mortgage Policy” shall
mean Mortgagee’s title insurance policy or a binding commitment with respect
thereto.

 

“Mortgaged Property”
shall mean any Real Property owned by a Credit Party which is encumbered (or
required to be encumbered) by a Mortgage.

 

“NAIC” shall mean the
National Association of Insurance Commissioners.

 

“Net Debt Proceeds” shall
mean, with respect to any incurrence of Indebtedness, the cash proceeds (net of
underwriting discounts and commissions and other reasonable fees, costs and
expenses associated therewith) received by the respective Person from the
respective incurrence of such Indebtedness.

 

“Net Insurance Proceeds”
shall mean, with respect to any Recovery Event, the cash proceeds received by
the respective Person in connection with such Recovery Event (net of (i)
reasonable costs and taxes incurred in connection with such Recovery Event and
(ii) required payments of any Indebtedness (other than Indebtedness secured
pursuant to the Security Documents) which is secured by the respective assets
the subject of such Recovery Event).

 

“Net Sale Proceeds” shall
mean, for any Asset Sale or Permitted Asset Exchange, as the case may be, the
gross cash proceeds (including any cash received by way of deferred payment
pursuant to a promissory note, receivable or otherwise, but only as and when
received) received from such sale of assets or Permitted Asset Exchange, net of
the reasonable costs and expenses of such sale or exchange (including fees and
commissions, payments of unassumed liabilities relating to the assets sold or
exchanged and required payments of any Indebtedness (other than Indebtedness
secured pursuant to the Security Documents) which is secured by the respective
assets which were sold), and the estimated marginal increase in income taxes
which will be payable by the Borrower’s consolidated group with respect to the
fiscal year in which the sale occurs as a result of such sale or exchange.

 

“New Tranche” shall mean
each Tranche of Term Loans other than the Tranche of Initial Term Loans.

 

“Non-Defaulting Lender”
and “Non-Defaulting RL Lender” shall mean and include each Lender or RL Lender,
as the case may be, other than a Defaulting Lender.

 

“Note” shall mean each
Initial Term Note, each Incremental Term Note, each Revolving Note and the
Swingline Note, in each case, as such Note may be replaced, modified or
supplemented in accordance with the terms hereof and thereof.

 

“Notice of Borrowing”
shall have the meaning provided in Section 1.03(a).

 

109

 

“Notice of
Conversion/Continuation” shall have the meaning provided in Section 1.06.

 

“Notice Office” shall
mean (i) for credit notices, the office of the Administrative Agent located at
60 Wall Street, New York 10005 and (ii) for operational notices, the office of
the Administrative Agent located at 90 Hudson Street, 5th Floor, Jersey City,
New Jersey 07302 or (iii) such other office or person as the Administrative
Agent may hereafter designate as such to the other parties hereto.

 

“Obligations” shall mean
all amounts (including, without limitation, any interest accruing subsequent to
the filing of a petition of bankruptcy at the rate provided for in the
documentation with respect thereto, whether or not such interest is an allowed
claim under applicable law), direct or indirect, contingent or absolute, of
every type or description, and at any time existing, owing to each Agent, each
Issuing Lender, the Swingline Lender or any Lender pursuant to the terms of
this Agreement or any other Credit Document.

 

“Other Hedging Agreements”
shall mean any foreign exchange contracts, currency swap agreements, commodity
price hedging arrangements or other similar arrangements, or arrangements
designed to protect against fluctuations in the currency values.

 

“Participant” shall have
the meaning provided in Section 2.04(a).

 

“Patriot Act” shall have
the meaning provided in Section 14.18.

 

“Patriot Act Information”
shall have the meaning provided in Section 14.18.

 

“Payment Office” shall
mean the office of the Administrative Agent at 90 Hudson Street, 5th
Floor, Jersey City, New Jersey or such other office as the Administrative Agent
may hereafter designate as such to the other parties hereto.

 

“PBGC” shall mean the Pension
Benefit Guaranty Corporation established pursuant to Section 4002 of
ERISA, or any successor thereto.

 

“Permitted Acquisition”
shall mean the acquisition by the Borrower or a Subsidiary Guarantor of an
Acquired Entity or Business (including by way of merger of such Acquired Entity
or Business with and into the Borrower or a Subsidiary Guarantor), provided
that (in each case) (A) the consideration paid by the Borrower or such
Subsidiary Guarantor consists solely of cash (including proceeds of Revolving
Loans or Swingline Loans), the assumption, issuance or incurrence of
Indebtedness otherwise permitted by Section 10.04(x) and the issuance of
common equity of the Borrower or Qualified Preferred Stock of the Borrower in
each case to the extent no Default or Event of Default exists pursuant to Section 11.10
or would result therefrom, (B) in the case of the acquisition of 100% of the
capital stock of any Person (including by way of merger), such Person shall own
no capital stock of any other Person (excluding de minimis amounts) unless
either (x) such Person owns 100% of the capital stock of such other Person or
(y) (1) such Person and its Wholly-Owned Subsidiaries own at least 80% of the
consolidated assets of such other Person and its Subsidiaries and (2) any
non-Wholly-Owned Subsidiary of such Person was non-Wholly-Owned prior to the
date of such Permitted Acquisition of such Person, (C) the Acquired Entity or
Business acquired pursuant to the 

 

110

 

respective
Permitted Acquisition is in a business permitted by Section 10.15, (D)
substantially all of the business, division or product lines of the Acquired
Entity or Business (in the case of an asset acquisition), or the assets and
business of the Acquired Entity or Business taken as a whole (in the case of an
acquisition of Equity Interests), is in the United States and (E) all
applicable requirements of Sections 9.14, 10.02 and 10.16 applicable to
Permitted Acquisitions are satisfied. 
Notwithstanding anything to the contrary contained in the immediately
preceding sentence, an acquisition which does not otherwise meet the
requirements set forth above in the definition of “Permitted Acquisition” shall
constitute a Permitted Acquisition if, and to the extent, the Required Lenders
agree in writing, prior to the consummation thereof, that such acquisition
shall constitute a Permitted Acquisition for purposes of this Agreement.

 

“Permitted Annual
Dividend Amount” shall mean, for any fiscal year of the Borrower, an amount
equal to the greater of (x) $15,000,000 and (y) 25% of Consolidated Net Income
of the immediately preceding fiscal year of the Borrower.

 

“Permitted Annual
Repurchase Amount” shall mean, for any fiscal year of the Borrower, an amount
equal to the greater of (x) $15,000,000 and (y) 33-1/3% of Excess Cash Flow for
the immediately preceding such fiscal year.

 

“Permitted Asset Exchange”
shall mean the exchange by the Borrower or its Subsidiaries of any of their
assets or property (other than Equity Interests of a Subsidiary, unless 100% of
the Equity Interests owned by the Borrower and its Subsidiaries in such
Subsidiary are disposed of) pursuant to an arm’s-length transaction the purpose
of which is to acquire (and such exchange actually results within 90 days of
such exchange in the acquisition of) property and assets of another Person
(other than the Equity Interests of any Person unless 100% of the Equity
Interests of such Person are obtained by the Borrower or the respective
Subsidiary) so exchanged by the Borrower or such Subsidiary.

 

“Permitted Encumbrance”
shall mean, with respect to any Mortgaged Property, such exceptions to title as
are set forth in the Mortgage Policy delivered with respect thereto, all of
which exceptions must be acceptable to the Administrative Agent in its
reasonable discretion.

 

“Permitted Indebtedness
Amount” shall mean at any time of the determination thereof an amount equal to
the remainder of (1) the sum of (x) $60,000,000 plus (y) the aggregate
principal amount of all Indebtedness constituting Capitalized Lease Obligations
outstanding on the last day of the Borrower’s immediately preceding fiscal year
(which for the purposes of this definition shall not exceed $45,000,000 for
either the Borrower’s fiscal year ended December 28, 2003 or its fiscal
year ending January 1, 2005) less (2) the aggregate principal
amount of all Indebtedness of the Borrower and its Subsidiaries then
outstanding (other than Indebtedness outstanding pursuant to Sections 10.04(i)
through 10.04(ix)).  For the avoidance of
doubt, in calculating the Permitted Indebtedness Amount pursuant to the
preceding sentence the following (without limitation) shall be included as a
utilization of availability thereunder: (i) any Indebtedness incurred, issued
or assumed in connection with any Permitted Acquisition (for this purpose
treating all earn-out, non-compete, consulting or deferred compensation as
Indebtedness (but not treating trade payables as Indebtedness) and determining
the aggregate amount of such Indebtedness by taking the aggregate principal
amount paid and reasonably expected to be paid (based on good faith projections
prepared by the Board of 

 

111

 

Directors of the
Borrower) on or prior to the latest Maturity Date then in effect pursuant to
any such earn-out, non-compete, consulting or deferred compensation); (ii) any
bid, performance, advance payment and surety bonds of the Borrower and its
Subsidiaries; (iii) any Capitalized Lease Obligations of the Borrower and its
Subsidiaries; and (iv) any intercompany loans among the Borrower and its
Subsidiaries not otherwise permitted under Section 10.04(iv).

 

“Permitted Investment
Amount” shall mean at any time of the determination thereof an amount equal to
the remainder of (1) $20,000,000 less (2) the sum of (A) aggregate amount of
all Investments made by the Borrower and its Subsidiaries (other than pursuant
to Sections 10.05(i) through (xiv)) from the Effective Date to the time of such
determination and (B) the aggregate amount of all Dividends or other restricted
payments made pursuant to Sections 10.03(vi) and (vii).  For the avoidance of doubt in calculating
availability under the Permitted Investment Amount the following (without
limitation) shall be considered a utilization of availability thereunder: (i)
purchases by the Borrower or any of its Subsidiaries of outstanding membership
interests in the Hinky Dinky Subsidiaries from the minority equityholders
thereof;  and (ii) Hinky Dinky Subsidiary
Investments or Super Foods Subsidiary Investments (other than pursuant to Section 10.05(xv)).

 

“Permitted Liens” shall
have the meaning provided in Section 10.01.

 

“Permitted Subordinated
Debt Documents” shall mean all documentation (including, without limitation,
any indenture or purchase agreement) entered into in connection with any
issuance of Permitted Subordinated Debt.

 

“Permitted Subordinated
Debt” shall mean unsecured subordinated debt securities of, or loans made to,
the Borrower (which may be guaranteed on an unsecured subordinated basis by
Subsidiary Guarantors) the terms of which (and conditions surrounding the
issuance of which) satisfy the relevant requirements of Section 10.04(ix).

 

“Person” shall mean any
individual, partnership, joint venture, firm, corporation, association, limited
liability company, trust or other enterprise or any government or political
subdivision or any agency, department or instrumentality thereof.

 

“Plan” shall mean any
pension plan as defined in Section 3(2) of ERISA, which is maintained or
contributed to by (or to which there is an obligation to contribute of) the
Borrower or a Subsidiary of the Borrower or an ERISA Affiliate on or after the
Initial Borrowing Date, and each such plan for the five year period immediately
following the latest date (whether before or after the Initial Borrowing Date)
on which the Borrower, a Subsidiary of the Borrower or an ERISA Affiliate
maintained, contributed to or had an obligation to contribute to such plan.

 

“Pledge Agreement” shall
have the meaning provided in Section 5.08.

 

“Pledge Agreement
Collateral” shall mean all “Collateral” as defined in the Pledge Agreement.

 

“Pledgee” shall have the
meaning as defined in the Pledge Agreement.

 

112

 

“Prime Lending Rate”
shall mean the rate which the Administrative Agent announces from time to time
as its prime lending rate, the Prime Lending Rate to change when and as such
prime lending rate changes.  The Prime
Lending Rate is a reference rate and does not necessarily represent the lowest
or best rate actually charged to any customer by the Administrative Agent,
which may make commercial loans or other loans at rates of interest at above or
below the Prime Lending Rate.

 

“Pro  Forma
Basis” shall mean, in connection with any calculation of compliance with any
financial covenant or financial term, the calculation thereof after giving
effect on a pro  forma basis to (x) the Permitted Acquisition then
being consummated as well as any other Permitted Acquisition consummated after
the first day of the relevant Test Period or Calculation Period, as the case
may be, and on or prior to the date of the respective Permitted Acquisition
then being effected and (y) the incurrence of any Indebtedness that is incurred
in connection with, or to finance, one or more Permitted Acquisitions; provided
that, for purposes of calculations pursuant to Section 9.14, such
calculations shall also give effect on a pro forma basis to (a) the incurrence
of any Indebtedness (other than revolving Indebtedness, except to the extent
same is incurred to refinance other outstanding Indebtedness or to finance one
or more Permitted Acquisitions) after the first day of the relevant Calculation
Period as if such Indebtedness had been incurred (and the proceeds thereof
applied) on the first day of the relevant Calculation Period and (b) the
permanent repayment of any Indebtedness (other than revolving Indebtedness)
after the first day of the relevant Calculation Period as if such Indebtedness
had been retired or redeemed on the first day of the relevant Calculation
Period, with the following rules to apply in connection therewith:

 

(i)                                     for
purposes of Section 9.14 only, all Indebtedness (x) (other than revolving
Indebtedness, except to the extent same is incurred to refinance other
outstanding Indebtedness or to finance one or more Permitted Acquisitions)
incurred or issued after the first day of the relevant Calculation Period
(whether incurred to finance a Permitted Acquisition, to refinance Indebtedness
or otherwise) shall be deemed to have been incurred or issued (and the proceeds
thereof applied) on the first day of the respective Calculation Period and
remain outstanding through the date of determination (and thereafter in the
case of projections pursuant to Section 9.14) and (y) (other than
revolving Indebtedness) permanently retired or redeemed after the first day of
the relevant Calculation Period shall be deemed to have been retired or
redeemed on the first day of the respective Calculation Period and remain
retired through the date of determination (and thereafter in the case of
projections pursuant to Section 9.14);

 

(ii)                                  for
purposes of Section 9.14 only, all Indebtedness assumed to be outstanding
pursuant to preceding clause (i) shall be deemed to have borne interest at (x)
the rate applicable thereto, in the case of fixed rate indebtedness or (y) the
rates which would have been applicable thereto during the respective period
when same was deemed outstanding, in the case of floating rate Indebtedness
(although interest expense with respect to any Indebtedness for periods while
same was actually outstanding during the respective period shall be calculated
using the actual rates applicable thereto while same was actually outstanding);
provided that all Indebtedness (whether actually outstanding or deemed
outstanding) bearing interest at a floating rate of interest shall be tested on
the 

 

113

 

basis of the rates
applicable at the time the determination is made pursuant to said provisions;

 

(iii)                               for
purposes of determinations of the Total Leverage Ratio (other than for purposes
of Section 9.14), Consolidated Indebtedness shall be the actual amount
thereof as of the last day of the respective Calculation Period or Test Period,
as the case may be; provided that, for purposes of determining the Total
Leverage Ratio as it relates to the definition of Applicable Margin and
Applicable Commitment Commission Percentage, to the extent any Permitted
Acquisition is consummated after the last day of the respective Calculation
Period or Test Period and on or prior to the date of delivery of the
certificate referenced in the definition of Applicable Margin, all Indebtedness
incurred or assumed in connection with one or more Permitted Acquisitions
consummated after the last day of the respective Test Period shall be added to
Consolidated Indebtedness and shall be deemed to have been outstanding on the
last day of the respective Calculation Period or Test Period, as the case may
be; and

 

(iv)                              in
making any determination of Consolidated EBITDA on a Pro  Forma
Basis, pro  forma effect shall be given to any Permitted
Acquisition effected during the respective Calculation Period or Test Period
(and thereafter to the extent provided in the definition of Applicable Margin
and Applicable Commitment Commission Percentage or for purposes of Section 9.14)
as if same had occurred on the first day of the respective Calculation Period
or Test Period, as the case may be, taking into account, in the case of any
Permitted Acquisition, factually supportable and identifiable cost savings and
expenses which would otherwise be accounted for as an adjustment pursuant to Article 11
of Regulation S-X under the Securities Act, as if such cost savings or expenses
were realized on the first day of the respective period.

 

“Projections” shall mean
the projections contained in the Confidential Information Memorandum, dated
October, 2004, which were prepared by or on behalf of the Borrower in
connection with this Agreement and delivered to the Administrative Agent and
the Lenders prior to the Initial Borrowing Date.

 

“Qualified Preferred
Stock” shall mean any preferred equity interests of the Borrower so long as the
terms of any such preferred equity interests (i) do not contain any mandatory
put, redemption, repayment, sinking fund or other similar provision prior to
the one year anniversary of the latest Maturity Date in effect for outstanding
Term Loans at the time such preferred equity interests are authorized for
issuance, (ii) do not require the cash payment of dividends or distributions at
any time that such cash payment would result in a Default or Event of Default
hereunder and (iii) do not contain any covenants other than (x) customary
covenants relating to information and anti-dilution and (y) such other
covenants as may be reasonably acceptable to the Administrative Agent.

 

“Quarterly Payment Date”
shall mean the last Business Day of each March, June, September and December occurring
after the Initial Borrowing Date, commencing on the last Business Day of
December, 2004.

 

114

 

“Quarterly Pricing
Certificate” shall have the meaning provided in the definition of Applicable
Commitment Commission Percentage and Applicable Margin contained in this
Agreement.

 

“RCRA” shall mean the
Resource Conservation and Recovery Act, as the same has been and may hereafter
be amended from time to time, 42 U.S.C. § 6901 et seq.

 

“Real Property” of any
Person shall mean all the right, title and interest of such Person in and to
land, improvements and fixtures, including Leaseholds.

 

“Recovery Event” shall
mean the receipt by the Borrower or any of its Subsidiaries of any cash
insurance proceeds (other than proceeds from business interruption insurance)
or condemnation awards payable (i) by reason of theft, loss, physical
destruction, damage, condemnation, taking or any other similar event with
respect to any property or assets of the Borrower or any of its Subsidiaries or
(ii) under any policy of insurance required to be maintained under Section 9.03.

 

“Redemption Date” shall
have the meaning provided in Section 5.05(b).

 

“Redemption Notice” shall
have the meaning provided in Section 5.05(b).

 

“Refinancing” shall mean,
collectively, (i) the Bank Refinancing, and (ii) the Existing Senior
Subordinated Notes Redemption.

 

“Refinancing Documents”
shall mean each of the agreements, documents and instruments entered into in
connection with the Refinancing.

 

“Register” shall have the
meaning provided in Section 14.15.

 

“Regulation D” shall mean
Regulation D of the Board of Governors of the Federal Reserve System as from
time to time in effect and any successor to all or a portion thereof
establishing reserve requirements.

 

“Regulation T” shall mean
Regulation T of the Board of Governors of the Federal Reserve System as from
time to time in effect and any successor to all or a portion thereof.

 

“Regulation U” shall mean
Regulation U of the Board of Governors of the Federal Reserve System as from
time to time in effect and any successor to all or a portion thereof.

 

“Regulation X” shall mean
Regulation X of the Board of Governors of the Federal Reserve System as from
time to time in effect and any successor to all or a portion thereof.

 

“Release” shall mean the
active or passive disposing, discharging, injecting, spilling, pumping,
leaking, leaching, dumping, emitting, escaping, emptying, pouring, seeping,
migrating or the like, into or upon any land or water or air, or otherwise
entering into the environment.

 

115

 

 

“Relevant Reinvestment
Period” shall mean with respect to any Asset Sale or Recovery Event, the
earlier of the following dates referred to in clauses (i) or (ii) below
occurring after the receipt of Net Sale Proceeds or Net Insurance Proceeds, as
the case may be, from such Asset Sale or Recovery Event: (i) 180 days (or in
the event the Borrower has contractually committed to reinvest such Net Sale
Proceeds or Net Insurance Proceeds, as the case may be, 270 days) following the
receipt of such Net Sale Proceeds or Net Insurance Proceeds, as the case may
be, and (ii) the date upon which the Borrower or the relevant Subsidiary
determines not to reinvest the Net Sale Proceeds or Net Insurance Proceeds, as
the case may be, from the respective Asset Sale or Recovery Event, as the case
may be.

 

“Relevant Term Loan
Percentage” shall mean, with respect to any voluntary prepayment or mandatory
repayment of a particular Tranche of Term Loans at any time, a fraction
(expressed as a percentage), the numerator of which is equal to the aggregate
outstanding principal amount of Term Loans of such Tranche at such time and the
denominator of which is equal to the aggregate principal amount of all Term
Loans at such time.

 

“Replaced Lender” shall
have the meaning provided in Section 1.13.

 

“Replacement Lender”
shall have the meaning provided in Section 1.13.

 

“Reportable Event” shall
mean an event described in Section 4043(c) of ERISA with respect to a Plan
that is subject to Title IV of ERISA other than those events as to which the
30-day notice period is waived under subsection .22, .23, .25, .27, .28,
..29, .30, .31, .32 or .34 of PBGC Regulation Section 4043.

 

“Required Lenders” shall
mean Non-Defaulting Lenders the sum of whose outstanding Term Loans and
Revolving Loan Commitments (or after the termination thereof, outstanding
Revolving Loans and RL Percentages of (x) outstanding Swingline Loans and (y)
Letter of Credit Outstandings) represent at least 50.1% of the sum of (i) all
outstanding Term Loans of Non-Defaulting Lenders, and (ii) the Total Revolving
Loan Commitment less the Revolving Loan Commitments of all Defaulting Lenders
(or after the termination thereof, the sum of then total outstanding Revolving
Loans of Non-Defaulting Lenders and the aggregate RL Percentages of all
Non-Defaulting Lenders of the total (x) outstanding Swingline Loans and (y)
Letter of Credit Outstandings at such time).

 

“Returns” shall have the
meaning provided in Section 8.09.

 

“Revolving Loan” shall
have the meaning provided in Section 1.01(b).

 

“Revolving Loan
Commitment” shall mean, for each Lender, the amount set forth opposite such
Lender’s name in Schedule 1.01 directly below the column entitled “Revolving
Loan Commitment,” as same may be (x) reduced from time to time pursuant to
Sections 3.02, 3.03 and/or 11 or (y) adjusted from time to time as a result of
assignments to or from such Lender pursuant to Section 1.13 or 14.04(b).

 

“Revolving Loan Maturity
Date” shall mean November 12, 2009.

 

“Revolving Note” shall
have the meaning provided in Section 1.05(a).

 

116

 

“RL Commitment Commission”
shall have the meaning provided in Section 3.01(a).

 

“RL Lender” shall mean
each Lender with a Revolving Loan Commitment or with outstanding Revolving Loans.

 

“RL Percentage” of any RL
Lender at any time shall mean a fraction (expressed as a percentage) the
numerator of which is the Revolving Loan Commitment of such RL Lender at such
time and the denominator of which is the Total Revolving Loan Commitment at
such time, provided that if the RL Percentage of any RL Lender is to be
determined after the Total Revolving Loan Commitment has been terminated, then
the RL Percentage of such RL Lender shall be determined immediately prior (and
without giving effect) to such termination.

 

“Scheduled Incremental
Term Loan Repayment” shall have the meaning provided in Section 4.02(b).

 

“Scheduled Incremental
Term Loan Repayment Date” shall have the meaning provided in Section 4.02(b).

 

“SEC” shall have the
meaning provided in Section 9.01(g).

 

“Section 4.04(b)(ii)
Certificate” shall have the meaning provided in Section 4.04(b)(ii).

 

“Secured Creditors” shall
have the meaning assigned that term in the respective Security Documents.

 

“Securities Act” shall
mean the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

 

“Securities Exchange Act”
shall mean the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

 

“Security Agreement”
shall have the meaning provided in Section 5.09.

 

“Security Agreement
Collateral” shall mean all “Collateral” as defined in the Security Agreement.

 

“Security Document” shall
mean and include each of the Security Agreement, the Pledge Agreement, each
Mortgage and, after the execution and delivery thereof, each Additional
Security Document.

 

“Senior Secured Leverage Ratio” shall mean,
at any time, the ratio of Consolidated Senior Secured Indebtedness at such time
to Consolidated EBITDA for the Test Period then most recently ended; provided
that Consolidated EBITDA shall be determined on a Pro Forma Basis to give
effect to all Permitted Acquisitions (if any) actually made during the Test
Period referenced above.

 

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“Shareholder Agreements”
shall mean all agreements entered into by the Borrower or any of its
Subsidiaries governing the terms and relative rights of its equity interests
and any agreements entered into by its shareholders relating to any such entity
with respect to its equity interests.

 

“Start Date” shall have
the meaning provided in the definition of “Applicable Commitment Commission”
and “Applicable Margin”.

 

“Stated Amount” of each
Letter of Credit shall mean, at any time, the maximum amount available to be drawn
thereunder (in each case determined without regard to whether any conditions to
drawing could then be met).

 

“Subsidiaries Guaranty”
shall have the meaning provided in Section 5.10.

 

“Subsidiary” shall mean,
as to any Person, (i) any corporation more than 50% of whose stock of any class
or classes having by the terms thereof ordinary voting power to elect a
majority of the directors of such corporation (irrespective of whether or not
at the time stock of any class or classes of such corporation shall have or
might have voting power by reason of the happening of any contingency) is at
the time owned by such Person and/or one or more Subsidiaries of such Person
and (ii) any partnership, limited liability company, association, joint venture
or other entity in which such Person and/or one or more Subsidiaries of such
Person has more than a 50% equity interest at the time.

 

“Subsidiary Guarantor”
shall mean each Wholly-Owned Domestic Subsidiary of the Borrower (other than
any Existing Non-Material Subsidiary) and, to the extent required by Section 9.13,
each Wholly-Owned Foreign Subsidiary of the Borrower.

 

“Super Foods Subsidiary”
shall mean Bad Axe Food Store and Whitton Enterprises, Inc., but, in each case,
only while the respective such Person is a Domestic Subsidiary, but not a
Wholly-Owned Subsidiary, of the Borrower.

 

“Super Foods Subsidiary
Investment” shall mean as to any Person any Investment in any Super Foods
Subsidiary (other than loans or advances for travel advances and other similar
cash advances made to employees and sales representatives in the ordinary
course of business) including, without limitation, through the purchase of
stock or obligations of any Super Foods Subsidiary, the acquisition of any
substantial part of the assets or business of any Super Foods Subsidiary (or
division thereof), being or becoming liable on any guaranty in respect of any
obligation of any Super Foods Subsidiary, or subordinating any claim or demand
such Person may have to the claim or demand of any other creditor of a Super
Foods Subsidiary.

 

“Supermajority Lenders”
shall mean those Non-Defaulting Lenders which would constitute Required Lenders
under, and as defined in, this Agreement if the percentage “50%” contained
therein were changed to “66-2/3%”.

 

“Swingline Expiry Date”
shall mean that date which is five Business Days prior to the Revolving Loan
Maturity Date.

 

“Swingline Lender” shall
mean DBTCA.

 

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“Swingline Loan” shall
have the meaning provided in Section 1.01(c).

 

“Swingline Note” shall
have the meaning provided in Section 1.05(a).

 

“Syndication Agent” shall
have the meaning provided in the first paragraph of this Agreement.

 

“Syndication Date” shall
mean that date upon which the Administrative Agent determines in its sole
discretion (and notifies the Borrower) that the primary syndication (and
resultant addition of Persons as Lenders pursuant to Section 14.04(b)) has
been completed.

 

“Tax Benefit” shall have
the meaning provided in Section 4.04(c).

 

“Tax Sharing Agreement”
shall mean all tax sharing, tax allocation and other similar agreements entered
into by the Borrower or any of its Subsidiaries.

 

“Taxes” shall have the
meaning provided in Section 4.04(a).

 

“Term Loans” shall mean
the Initial Term Loans and the Incremental Term Loans of a New Tranche.

 

 “Test Period” shall mean each period of four
consecutive fiscal quarters of the Borrower then last ended (in each case taken
as one accounting period).

 

“Total Commitment” shall
mean, at any time, the sum of the Commitments of each of the Lenders at such
time.

 

“Total Initial Term Loan Commitment” shall
mean the sum of the Initial Term Loan Commitments of each of the Lenders.

 

“Total Leverage Ratio”
shall mean, at any time, the ratio of Consolidated Indebtedness at such time to
Consolidated EBITDA for the Test Period then most recently ended; provided
that Consolidated EBITDA shall be determined on a Pro  Forma Basis
to give effect to all Permitted Acquisitions (if any) actually made during the
Test Period referenced above. 
Furthermore, to the extent provided in the definition of “Applicable
Commitment Commission Percentage” and “Applicable Margin,” certain
determinations of the Total Leverage Ratio pursuant thereto shall be further
determined on a Pro  Forma Basis to give effect to Permitted
Acquisitions consummated after the last day of the respective Test Period and
on or prior to the date of the delivery of the certificate referenced therein,
as well as to any Indebtedness incurred or assumed in connection therewith.

 

“Total Revolving Loan
Commitment” shall mean, at any time, the sum of the Revolving Loan Commitments
of each of the Lenders at such time.

 

“Total Sales and Revenues”
shall mean, for any period, sales of merchandise and services by the Borrower
and its Subsidiaries to their respective third party customers, as reported in
the Borrower’s Form 10K and/or 10Q filed with the SEC covering such period.

 

119

 

“Total Unutilized
Revolving Loan Commitment” shall mean, at any time, an amount equal to the
remainder of (x) the Total Revolving Loan Commitment then in effect less (y)
the sum of the aggregate principal amount of all Revolving Loans and Swingline
Loans then outstanding plus the aggregate amount of all Letter of Credit
Outstandings.

 

“Tranche” shall mean the
respective facility and commitments utilized in making Loans hereunder, with
there being two Tranches on the Initial Borrowing Date (consisting of the
Initial Term Loan Commitments and the Total Revolving Loan Commitment and the
respective extensions of credit (i.e., Initial Term Loans, Revolving
Loans, Swingline Loans and Letters of Credit) pursuant thereto.  In addition, any Incremental Term Loans
extended after the Initial Borrowing Date shall be made pursuant to the Tranche
of Initial Term Loans or one or more additional Tranches of Term Loans which
shall be designated pursuant to the respective Incremental Commitment
Agreements in accordance with the relevant requirements specified in Section 1.14.

 

“Type” shall mean the
type of Loan determined with regard to the interest option applicable thereto, i.e.,
whether a Base Rate Loan or a Eurodollar Loan.

 

“UCC” shall mean the
Uniform Commercial Code as from time to time in effect in the relevant jurisdiction.

 

“Unfunded Current
Liability” of any Plan shall mean the amount, if any, by which the value of the
accumulated plan benefits under the Plan determined on a plan termination basis
in accordance with actuarial assumptions at such time consistent with those
prescribed by the PBGC for purposes of Section 4044 of ERISA, exceeds the
fair market value of all plan assets allocable to such liabilities under Title
IV of ERISA (excluding any accrued but unpaid contribution).

 

“United States” and “U.S.”
shall each mean the United States of America.

 

“Unpaid Drawing” shall
have the meaning provided for in Section 2.05(a).

 

“Unutilized Revolving
Loan Commitment” shall mean, with respect to any Lender at any time, such
Lender’s Revolving Loan Commitment at such time less the sum of (i) the
aggregate outstanding principal amount of all Revolving Loans made by such
Lender at such time and (ii) such Lender’s RL Percentage of the Letter of
Credit Outstandings at such time.

 

“U.S. Bank” shall mean
U.S. Bank National Association, in its individual capacity, and any successor
corporation thereto by merger, consolidation or otherwise.

 

“Weighted Average Life to
Maturity” shall mean, when applied to any Indebtedness at any date of
determination, the number of years obtained by dividing (i) the then
outstanding principal amount of such Indebtedness into (ii) the sum of the
products obtained by multiplying (x) the amount of each then remaining
installment or other required scheduled payments of principal, including
payment at final maturity, in respect thereof, by (y) the number of years
(calculated to the nearest one-twelfth) that will elapse between such date of
determination and the making of each such payment.

 

120

 

“Wholly-Owned Domestic
Subsidiary” shall mean each Domestic Subsidiary of the Borrower that is also a
Wholly-Owned Subsidiary of the Borrower.

 

“Wholly-Owned Foreign
Subsidiary” shall mean each Foreign Subsidiary of the Borrower that is also a
Wholly-Owned Subsidiary of the Borrower.

 

“Wholly-Owned Subsidiary”
shall mean, as to any Person, (i) any corporation 100% of whose capital stock
(other than director’s qualifying shares) is at the time owned by such Person
and/or one or more Wholly-Owned Subsidiaries of such Person and (ii) any
partnership, limited liability company, association, joint venture or other
entity in which such Person and/or one or more Wholly-Owned Subsidiaries of
such Person has a 100% equity interest at such time.

 

SECTION 13.  The Agents.

 

13.01  Appointment.  The Lenders hereby irrevocably designate and
appoint DBTCA as Administrative Agent (for purposes of this Section 13 and
Section 14.01, the term “Administrative Agent” also shall include DBTCA in
its capacity as Collateral Agent pursuant to the Security Documents) to act as
specified herein and in the other Credit Documents.  The Lenders hereby appoint Harris Trust and
Savings Bank as Syndication Agent to act as specified herein and in the other
Credit Documents.  The Lenders hereby
appoint each of General Electric Capital Corporation and U.S. Bank National
Association as Documentation Agent to act as specified herein and in the other
Credit Documents.  The Lenders hereby
appoint DBSI as the Lead Arranger to act as specified herein and in the other
Credit Documents.  Each Lender hereby
irrevocably authorizes, and each holder of any Note by the acceptance of such
Note shall be deemed irrevocably to authorize, each Agent to take such action
on its behalf under the provisions of this Agreement, the other Credit
Documents and any other instruments and agreements referred to herein or
therein and to exercise such powers and to perform such duties hereunder and
thereunder as are specifically delegated to or required of each Agent by the
terms hereof and thereof and such other powers as are reasonably incidental
thereto.  Each Agent may perform any of
its duties hereunder by or through its officers, directors, agents, employees
or affiliates.

 

13.02  Nature of Duties.  No Agent shall have any duties or
responsibilities except those expressly set forth in this Agreement and in the
other Credit Documents.  No Agent nor any
of its officers, directors, agents, employees or affiliates shall be liable for
any action taken or omitted by any of them hereunder or under any other Credit
Document or in connection herewith or therewith, unless caused by its or their
gross negligence or willful misconduct (as determined by a court of competent
jurisdiction in a final and non-appealable decision).  The duties of each Agent shall be mechanical
and administrative in nature; no Agent shall have by reason of this Agreement
or any other Credit Document a fiduciary relationship in respect of any Lender
or the holder of any Note; and nothing in this Agreement or in any other Credit
Document, expressed or implied, is intended to or shall be so construed as to
impose upon any Agent any obligations in respect of this Agreement or any other
Credit Document except as expressly set forth herein or therein.

 

121

 

13.03  Lack of Reliance
on the Agents.  Independently and
without reliance upon the Administrative Agent, each Lender and the holder of
each Note, to the extent it deems appropriate, has made and shall continue to
make (i) its own independent investigation of the financial condition and
affairs of the Borrower and its Subsidiaries in connection with the making and
the continuance of the Loans and the taking or not taking of any action in
connection herewith and (ii) its own appraisal of the creditworthiness of the
Borrower and its Subsidiaries and, except as expressly provided in this
Agreement, no Agent shall not have any duty or responsibility, either initially
or on a continuing basis, to provide any Lender or the holder of any Note with
any credit or other information with respect thereto, whether coming into its
possession before the making of the Loans or at any time or times
thereafter.  No Agent shall be
responsible to any Lender or the holder of any Note for any recitals,
statements, information, representations or warranties herein or in any
document, certificate or other writing delivered in connection herewith or for
the execution, effectiveness, genuineness, validity, enforceability,
perfection, collectibility, priority or sufficiency of this Agreement or any
other Credit Document or the financial condition of the Borrower or any of its
Subsidiaries or be required to make any inquiry concerning either the
performance or observance of any of the terms, provisions or conditions of this
Agreement or any other Credit Document, or the financial condition of the
Borrower or any of its Subsidiaries or the existence or possible existence of
any Default or Event of Default.

 

13.04  Certain Rights
of the Agents.  If any Agent requests
instructions from the Required Lenders with respect to any act or action
(including failure to act) in connection with this Agreement or any other
Credit Document, such Agent shall be entitled to refrain from such act or
taking such action unless and until such Agent shall have received instructions
from the Required Lenders; and such Agent shall not incur liability to any
Lender by reason of so refraining. 
Without limiting the foregoing, neither any Lender nor the holder of any
Note shall have any right of action whatsoever against any Agent as a result of
such Agent acting or refraining from acting hereunder or under any other Credit
Document in accordance with the instructions of the Required Lenders.

 

13.05  Reliance.  Each Agent shall be entitled to rely, and
shall be fully protected in relying, upon any note, writing (including any
electronic message, Internet or intranet website posting or other
distribution), resolution, notice, statement, certificate, telex, teletype or
telecopier message, cablegram, radiogram, order or other document or telephone
message signed, sent or made by any Person that such Agent believed to be the
proper Person, and, with respect to all legal matters pertaining to this
Agreement and any other Credit Document and its duties hereunder and
thereunder, upon advice of counsel selected by such Agent.

 

13.06  Indemnification.  To the extent any Agent (or any affiliate
thereof) is not reimbursed and indemnified by the Borrower, the Lenders will
reimburse and indemnify such Agent (and any affiliate thereof) in proportion to
their respective “percentage” as used in determining the Required Lenders
(determined as if there were no Defaulting Lenders) for and against any and all
liabilities, obligations, losses, damages, penalties, claims, actions,
judgments, costs, expenses or disbursements of whatsoever kind or nature which
may be imposed on, asserted against or incurred by such Agent (or any affiliate
thereof) in performing its duties hereunder or under any other Credit Document or
in any way relating to or arising out of this Agreement or any other Credit
Document; provided that no Lender shall be liable for any portion 

 

122

 

of such liabilities, obligations, losses, damages, penalties, claims,
actions, judgments, suits, costs, expenses or disbursements resulting from such
Agent’s (or such affiliate’s) gross negligence or willful misconduct (as
determined by a court of competent jurisdiction in a final and non-appealable
decision).

 

13.07  Each Agent in its
Individual Capacity.  With respect to
its obligation to make Loans, or issue or participate in Letters of Credit,
under this Agreement, each Agent shall have the rights and powers specified
herein for a “Lender” and may exercise the same rights and powers as though it
were not performing the duties specified herein; and the term “Lender,” “Required
Lenders,” “Majority Lenders,” “Super Majority Lenders,” “holders of Notes” or
any similar terms shall, unless the context clearly otherwise indicates,
include such Agent in its individual capacity. 
Each Agent and its affiliates may accept deposits from, lend money to,
and generally engage in any kind of banking, investment banking, trust or other
business with, or provide debt financing, equity capital or other services
(including financial advisory services) to any Credit Party or any Affiliate of
any Credit Party (or any Person engaged in a similar business with any Credit
Party or any Affiliate thereof) as if it were not performing the duties
specified herein, and may accept fees and other consideration from any Credit
Party or any Affiliate of any Credit Party for services in connection with this
Agreement and otherwise without having to account for the same to the Lenders.

 

13.08  Holders.  The Administrative Agent may deem and treat
the payee of any Note as the owner thereof for all purposes hereof unless and
until a written notice of the assignment, transfer or endorsement thereof, as
the case may be, shall have been filed with the Administrative Agent.  Any request, authority or consent of any
Person who, at the time of making such request or giving such authority or
consent, is the holder of any Note shall be conclusive and binding on any
subsequent holder, transferee, assignee or endorsee, as the case may be, of
such Note or of any Note or Notes issued in exchange therefor.

 

13.09  Resignation by
the Agents.  (a)  The Administrative Agent may resign from the
performance of all its functions and duties hereunder and/or under the other Credit
Documents at any time by giving 15 Business Days’ prior written notice to the
Lenders.  Notwithstanding anything to the
contrary contained in this Agreement or any other Credit Document, any such
resignation by an Administrative Agent hereunder shall also constitute its
resignation as an Issuing Lender and the Swingline Lender, in which case the
resigning Administrative Agent (x) shall not be required to issue any further
Letters of Credit or make any additional Swingline Loans hereunder and (y) shall
maintain all of its rights as Issuing Lender or Swingline Lender, as the case
may be, with respect to any Letters of Credit issued by it, or Swingline Loans
made by it, prior to the date of such resignation.  Such resignation shall take effect upon the appointment
of a successor Administrative Agent pursuant to clauses (b) and (c) below or as
otherwise provided below.

 

(b)                                 Upon any such notice of resignation by
the Administrative Agent, the Required Lenders shall appoint a successor
Administrative Agent hereunder or thereunder who shall be a commercial bank or
trust company reasonably acceptable to the Borrower, which acceptance shall not
be unreasonably withheld or delayed (provided that the Borrower’s
approval shall not be required if a Default or an Event of Default then
exists).

 

123

 

(c)                                  If a successor Administrative Agent shall
not have been so appointed within such 15 Business Day period, the
Administrative Agent, with the consent of the Borrower (which consent shall not
be unreasonably withheld or delayed, provided that the Borrower’s
consent shall not be required if a Default or an Event of Default then exists),
shall then appoint a successor Administrative Agent who shall serve as
Administrative Agent hereunder or thereunder until such time, if any, as the
Required Lenders appoint a successor Administrative Agent as provided above.

 

(d)                                 If no successor Administrative Agent has
been appointed pursuant to clause (b) or (c) above by the 20th Business Day after
the date such notice of resignation was given by the Administrative Agent, the
Administrative Agent’s resignation shall become effective and the Required
Lenders shall thereafter perform all the duties of the Administrative Agent
hereunder and/or under any other Credit Document until such time, if any, as
the Required Lenders appoint a successor Administrative Agent as provided
above.

 

(e)                                  The Syndication Agent and each
Documentation Agent may, upon five Business Days’ notice to the Borrower, the
Administrative Agent and the Lenders, resign at any time (effective upon the
fifth Business Day after the giving of such notice).

 

(f)                                    Upon a resignation of any Agent pursuant
to this Section 13.09, such Agent shall remain indemnified to the extent
provided in this Agreement and the other Credit Documents and the provisions of
this Section 13 shall continue in effect for the benefit of such Agent for
all of its actions and inactions while serving as an Agent.

 

13.10  The
Syndication Agent and the Documentation Agents.  Notwithstanding any other provision of this
Agreement or any provision of any other Credit Document, the Syndication Agent
and each Documentation Agent are named as such for recognition purposes only,
and in their respective capacities as such shall have no powers, rights,
duties, responsibilities or liabilities with respect to this Agreement or the
other Credit Documents or the transactions contemplated hereby and
thereby.  Without limitation of the
foregoing, neither the Syndication Agent nor any Documentation Agent shall,
solely by reason of this Agreement or any other Credit Document, have any
fiduciary relationship in respect of any Lender or any other Person.

 

SECTION 14.  Miscellaneous.

 

14.01  Payment of
Expenses, etc.  The
Borrower hereby agrees to:

 

(i)                                     whether
or not the transactions herein contemplated are consummated, pay all reasonable
out-of-pocket costs and expenses of the Administrative Agent and the Collateral
Agent (including, without limitation, the reasonable fees and disbursements of
White & Case LLP and the Administrative Agent’s other counsel and
consultants) in connection with the preparation, execution and delivery of this
Agreement and the other Credit Documents and the documents and instruments
referred to herein and therein and any amendment, waiver or consent relating
hereto or thereto, of the Administrative Agent in connection with its
syndication efforts with respect to this Agreement and each Agent and, after
the occurrence of an Event of Default, each of the Lenders in connection with
the enforcement of this Agreement and the other Credit 

 

124

 

Documents and
the documents and instruments referred to herein and therein 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 (including, in each case without limitation, the
reasonable fees and disbursements of counsel and consultants for the Agents
and, after the occurrence of an Event of Default, counsel for each of the
Lenders);

 

(ii)                                  pay
and hold each Agent and each of the Lenders harmless from and against any and
all present and future stamp, excise and other similar documentary taxes with
respect to the foregoing matters and save such Agent and each of the Lenders
harmless from and against any and all liabilities with respect to or resulting
from any delay or omission (other than to the extent attributable to the
Administrative Agent or such Lender) to pay such taxes; and

 

(iii)                               indemnify
each Agent and each Lender, and each of their respective officers, directors,
employees, representatives, agents, affiliates, trustees and investment
advisors from and hold each of them harmless against any and all liabilities,
obligations (including removal or remedial actions), losses, damages,
penalties, claims, actions, judgments, suits, costs, expenses and disbursements
(including reasonable attorneys’ and consultants’ fees and disbursements) incurred
by, imposed on or assessed against any of them as a result of, or arising out
of, or in any way related to, or by reason of, (a) any investigation,
litigation or other proceeding (whether or not any Agent or any Lender is a
party thereto and whether or not such investigation, litigation or other
proceeding is brought by or on behalf of any Credit Party) related to the
entering into and/or performance of this Agreement or any other Credit Document
or the use of any Letter of Credit or the proceeds of any Loans hereunder or
the consummation of any other transactions contemplated herein or in any other
Credit Document or the exercise of any of their rights or remedies provided
herein or in the other Credit Documents, or (b) the actual or alleged presence of
Hazardous Materials in the air, surface water or groundwater or on the surface
or subsurface of any Real Property at any time owned, leased or operated by the
Borrower or any of its Subsidiaries, the generation, storage, transportation,
handling or disposal of Hazardous Materials by the Borrower or any of its
Subsidiaries at any location, whether or not owned, leased or operated by the
Borrower or any of its Subsidiaries, the non-compliance by the Borrower or any
of its Subsidiaries with any Environmental Law (including applicable permits
thereunder) applicable to any Real Property, or any Environmental Claim
asserted against the Borrower, any of its Subsidiaries or any Real Property at
any time owned, leased or operated by the Borrower or any of its Subsidiaries,
including, in each case, without limitation, the reasonable fees and
disbursements of counsel and other consultants incurred in connection with any
such investigation, litigation or other proceeding (but excluding, in each
case, any losses, liabilities, claims, damages or expenses to the extent
incurred by reason of the gross negligence or willful misconduct of the Person
to be indemnified (as determined by a court of competent jurisdiction in a
final and non-appealable decision)).  To
the extent that the undertaking to indemnify, pay or hold harmless the
Administrative Agent or any Lender set forth in the preceding sentence may be
unenforceable because it is violative of any law or public policy, the Borrower
shall make the maximum contribution to the payment and satisfaction of each of
the indemnified liabilities which is permissible under applicable law.

 

14.02  Right of Setoff.  In addition to any rights now or hereafter
granted under applicable law or otherwise, and not by way of limitation of any
such rights, upon the occurrence 

 

125

 

and during the continuance of an Event of Default, each Agent and each
Lender is hereby authorized at any time or from time to time, without
presentment, demand, protest or other notice of any kind to any Credit Party or
to any other Person, any such notice being hereby expressly waived, to set off
and to appropriate and apply any and all deposits (general or special) and any
other Indebtedness at any time held or owing by such Agent or such Lender
(including, without limitation, by branches and agencies of such Lender
wherever located) to or for the credit or the account of any Credit Party
against and on account of the Obligations and liabilities of the Credit Parties
to such Agent or such Lender under this Agreement or under any of the other
Credit Documents, including, without limitation, all interests in Obligations
purchased by such Lender pursuant to Section 14.06(b), and all other
claims of any nature or description arising out of or connected with this
Agreement or any other Credit Document, irrespective of whether or not such
Lender shall have made any demand hereunder and although said Obligations,
liabilities or claims, or any of them, shall be contingent or unmatured.

 

14.03  Notices.  (a)                                               Unless
otherwise expressly provided herein, all notices and other communications
provided for hereunder shall be in writing (including by facsimile
transmission).  All such written notices
shall be mailed certified or registered mail, faxed or delivered to the
applicable address, facsimile number or (subject to subsection (b) below)
electronic mail address, and all notices and other communications expressly
permitted hereunder to be given by telephone shall be made to the applicable
telephone number, as follows:

 

(i)                                     if to the Borrower, any Agent, the
Collateral Agent, any Issuing Lender or the Swingline Lender, to the address,
facsimile number, electronic mail address or telephone number specified for
such Person on Schedule 14.03 or to such other address, facsimile number,
electronic mail address or telephone number as shall be designated by such
party in a written notice to the other parties; and

 

(ii)                                  if to any other Lender, to the address,
facsimile number, electronic mail address or telephone number specified in its
Administrative Questionnaire or to such other address, facsimile number,
electronic mail address or telephone number as shall be designated by such
party in a notice to the Borrower, the Administrative Agent, the Issuing Lender
and the Swingline Lender.

 

Notices sent by hand or
overnight courier service, or mailed by certified or registered mail, shall be
deemed to have been given when received; notices sent by facsimile shall be
deemed to have been given when sent (except that, if not given during normal
business hours for the recipient, shall be deemed to have been given at the
opening of business on the next business day for the recipient).  Notices delivered through electronic
communications to the extent provided in subsection (b) below, shall,
unless the Administrative Agent otherwise prescribes, be deemed to have been
given (i) in the case of notices and other communications sent to an e-mail
address, upon the sender’s receipt of an acknowledgement from the intended
recipient (such as by the “return receipt requested” function, as available,
return e-mail or other written acknowledgement), provided that if such notice
or other communication is not sent during the normal business hours of the
recipient, such notice or communication shall be deemed to have been sent at
the opening of business on the next business day for the recipient, and (ii) in
the case of notices or communications posted to an Internet or intranet
website, upon the deemed receipt by the intended recipient at its e-mail
address as described in the foregoing clause (i) of 

 

126

 

notification that
such notice or communication is available and identifying the website address
therefor.

 

(b)                                 Notices and other communications
to the Lenders hereunder may be delivered or furnished by electronic
communication (including e-mail and Internet or intranet websites) pursuant to
procedures approved by the Administrative Agent, provided that the
foregoing shall not apply to notices to any Lender if such Lender has notified
the Administrative Agent that it is incapable of receiving notices by
electronic communication.  The
Administrative Agent or the Borrower may, in its discretion, agree to accept
notices and other communications to it hereunder by electronic communications
pursuant to procedures approved by it, provided that approval of such
procedures may be limited to particular notices or communications.

 

(c)                                  Credit Documents may be
transmitted and/or signed by facsimile. 
The effectiveness of any such documents and signatures shall, subject to
applicable law, have the same force and effect as manually-signed originals and
shall be binding on all Credit Parties, the Agents, the Collateral Agent, and
the Lenders.  The Administrative Agent
may also require that any such documents and signatures be confirmed by a
manually-signed original thereof; provided, however, that the
failure to request or deliver the same shall not limit the effectiveness of any
facsimile document or signature.

 

(d)                                 Each Agent, the Swingline
Lender, each Issuing Lender and the Lenders shall each be entitled to rely and
act upon any notices (including telephonic Notices of Borrowing) believed by it
in good faith to have been given by or on behalf of the Borrower even if (i)
such notices were not made in a manner specified herein, were incomplete or
were not preceded or followed by any other form of notice specified herein, or
(ii) the terms thereof, as understood by the recipient, varied from any
confirmation thereof.  The Borrower shall
indemnify each Agent and each Lender from all losses, costs, expenses and
liabilities resulting from the reliance by such Person on each notice believed
by the respective such Person in good faith to have been given by or on behalf
of the Borrower or any other Credit Party. 
All telephonic notices to and other communications with the
Administrative Agent may be recorded by the Administrative Agent, and each of
the parties hereto hereby consents to such recording.  In addition, the Borrower hereby waives the
right to dispute the Administrative Agent’s or the Swingline Lender’s record of
the terms of such telephonic notice of Borrowing or prepayment of Loans (absent
manifest error).

 

14.04  Benefit of
Agreement; Assignments; Participations.  (a) 
This Agreement shall be binding upon and inure to the benefit of and be
enforceable by the respective successors and assigns of the parties hereto; provided,
however, the Borrower may not assign or transfer any of its rights,
obligations or interest hereunder without the prior written consent of the
Lenders and, provided  further, that, although any Lender may
transfer, assign or grant participations in its rights hereunder, such Lender
shall remain a “Lender” for all purposes hereunder (and may not transfer or
assign all or any portion of its Commitments hereunder except as provided in
Sections 1.13 and 14.04(b)) and the transferee, assignee or participant, as the
case may be, shall not constitute a “Lender” hereunder and, provided  further,
that no Lender shall transfer or grant any participation under which the
participant shall have rights to approve any amendment to or waiver of this
Agreement or any other Credit Document except to the extent such amendment or
waiver would (i) extend the final scheduled maturity of any Loan, Note or
Letter of Credit 

 

127

 

(unless such Letter of Credit is not extended beyond the Revolving Loan
Maturity Date) in which such participant is participating, or reduce the rate
or extend the time of payment of interest or Fees thereon (except in connection
with a waiver of applicability of any post-default increase in interest rates)
or reduce the principal amount thereof (it being understood that any amendment
or modification to the financial definitions in this Agreement or to Section 14.07(a)
shall not constitute a reduction in the rate of interest or Fees payable
hereunder), or increase the amount of the participant’s participation over the
amount thereof then in effect (it being understood that a waiver of any Default
or Event of Default or of a mandatory reduction in the Total Commitment shall
not constitute a change in the terms of such participation, and that an
increase in any Commitment (or the available portion thereof) or Loan shall be
permitted without the consent of any participant if the participant’s
participation is not increased as a result thereof), (ii) consent to the
assignment or transfer by the Borrower of any of its rights and obligations
under this Agreement or (iii) release all or substantially all of the
Collateral under all of the Security Documents (except as expressly provided in
the Credit Documents) supporting the Loans or Letters of Credit hereunder in
which such participant is participating. 
In the case of any such participation, the participant shall not have
any rights under this Agreement or any of the other Credit Documents (the
participant’s rights against such Lender in respect of such participation to be
those set forth in the agreement executed by such Lender in favor of the
participant relating thereto) and all amounts payable by the Borrower hereunder
shall be determined as if such Lender had not sold such participation.

 

(b)                                 Notwithstanding the foregoing, any Lender
(or any Lender together with one or more other Lenders) may (x) assign all or a
portion of its Commitments and related outstanding Obligations (or, if the
Commitments with respect to the relevant Tranche have terminated, outstanding
Obligations) hereunder to (i)(A) its parent company and/or any affiliate of
such Lender which is at least 50% owned by such Lender or its parent company or
(B) to one or more other Lenders or any affiliate of any such other Lender
which is at least 50% owned by such other Lender or its parent company (provided
that any fund that invests in loans and is managed or advised by the same
investment advisor of another fund which is a Lender (or by an Affiliate of
such investment advisor) shall be treated as an affiliate of such other Lender
for the purposes of this sub-clause (x)(i)(B)), or (ii) in the case of any
Lender that is a fund that invests in loans, any other fund that invests in
loans and is managed or advised by the same investment advisor of such Lender
or by an Affiliate of such investment advisor or (y) assign all, or if less
than all, a portion equal to at least (A) in the case of an assignment of Term
Loans, $1,000,000 and (B) in the case of an assignment of Revolving Loan
Commitments and related outstanding Obligations, $5,000,000 in the aggregate
for the assigning Lender or assigning Lenders, of such Commitments and related
outstanding Obligations (or, if the Commitments with respect to the relevant
Tranche have terminated, outstanding Obligations) hereunder to one or more
Eligible Transferees (treating any fund that invests in loans and any other
fund that invests in loans and is managed or advised by the same investment
advisor of such fund or by an Affiliate of such investment advisor as a single
Eligible Transferee), each of which assignees shall become a party to this
Agreement as a Lender by execution of an Assignment and Assumption Agreement, provided
that, (i) at such time Schedule I shall be deemed modified to reflect the
Commitments and/or outstanding Loans, as the case may be, of such new Lender
and of the existing Lenders, (ii) upon the surrender of the relevant Notes by
the assigning Lender (or, upon such assigning Lender’s indemnifying the
Borrower for any lost Note pursuant to a customary indemnification agreement)
new Notes will be issued, at the Borrower’s expense, to such new Lender and to
the 

 

128

 

assigning Lender
upon the request of such new Lender or assigning Lender, such new Notes to be
in conformity with the requirements of Section 1.05 (with appropriate
modifications) to the extent needed to reflect the revised Commitments and/or
outstanding Loans, as the case may be, (iii) the consent of the Administrative
Agent and, so long as no Default or Event of Default then exists the consent of
the Borrower shall (in either case) be required in connection with any such
assignment pursuant to clause (y) above (each of which consents shall not be
unreasonably withheld or delayed), (iv) the consent of DBTCA (which consent
shall not be unreasonably withheld or delayed) shall be required in connection
with any assignment of the Total Revolving Loan Commitment and related
outstanding Obligations (or, if the Total Revolving Loan Commitment has
terminated, outstanding Obligations), (v) the Administrative Agent shall
receive at the time of each such assignment, from the assigning or assignee
Lender, the payment of a non-refundable assignment fee of $3,500 and (vi) no
such transfer or assignment will be effective until recorded by the
Administrative Agent on the Register pursuant to Section 14.15.  To the extent of any assignment pursuant to
this Section 14.04(b), the assigning Lender shall be relieved of its
obligations hereunder with respect to its assigned Commitments and outstanding
Loans.  At the time of each assignment
pursuant to this Section 14.04(b) to a Person which is not already a
Lender hereunder and which is not a United States person (as such term is
defined in Section 7701(a)(30) of the Code) for Federal income tax
purposes, the respective assignee Lender shall, to the extent legally entitled
to do so, provide to the Borrower the appropriate Internal Revenue Service
Forms (and, if applicable, a Section 4.04(b)(ii) Certificate) described in
Section 4.04(b).  To the extent that
an assignment of all or any portion of a Lender’s Commitments and related
outstanding Obligations pursuant to Section 1.13 or this Section 14.04(b)
would, at the time of such assignment, result in increased costs under Section 1.10,
2.06 or 4.04 from those being charged by the respective assigning Lender prior
to such assignment, then the Borrower shall not be obligated to pay such
increased costs (although the Borrower, in accordance with and pursuant to the
other provisions of this Agreement, shall be obligated to pay any other
increased costs of the type described above resulting from changes after the
date of the respective assignment).

 

(c)                                  Nothing in this Agreement shall prevent
or prohibit (x) any Lender from pledging its Loans and Notes hereunder to a
Federal Reserve Bank in support of borrowings made by such Lender from such
Federal Reserve Bank or (y) any Lender which is a fund from pledging all or any
portion of its Loans and Notes to its trustee or to a collateral agent providing
credit or credit support to such Lender in support of its obligations to its
trustee or such collateral agent, as the case may be.  No pledge pursuant to this clause (c) shall
release the transferor Lender from any of its obligations hereunder.

 

14.05  No Waiver;
Remedies Cumulative.  No failure or
delay on the part of any Agent, any Issuing Lender or any Lender in exercising
any right, power or privilege hereunder or under any other Credit Document and
no course of dealing between the Borrower or any other Credit Party and any
Agent, any Issuing Lender or any Lender shall operate as a waiver thereof; nor
shall any single or partial exercise of any right, power or privilege hereunder
or under any other Credit Document preclude any other or further exercise
thereof or the exercise of any other right, power or privilege hereunder or
thereunder.  The rights, powers and
remedies herein or in any other Credit Document expressly provided are
cumulative and not exclusive of any rights, powers or remedies which any Agent,
any Issuing Lender or any Lender would otherwise have.  No notice to or demand on any Credit Party in
any case shall entitle any Credit Party to any other 

 

129

 

or further notice or demand in similar or other circumstances or
constitute a waiver of the rights of any Agent, any Issuing Lender or any
Lender to any other or further action in any circumstances without notice or
demand.

 

14.06  Payments Pro
Rata.  (a)  Except as otherwise provided in this
Agreement, the Administrative Agent agrees that promptly after its receipt of
each payment from or on behalf of the Borrower in respect of any Obligations
hereunder, the Administrative Agent shall distribute such payment to the
Lenders entitled thereto (other than any Lender that has consented in writing
to waive its pro  rata share of any such payment) pro  rata
based upon their respective shares, if any, of the Obligations with respect to
which such payment was received.

 

(b)                                 Each of the Lenders agrees that, if it
should receive any amount hereunder (whether by voluntary payment, by
realization upon security, by the exercise of the right of setoff or banker’s
lien, by counterclaim or cross action, by the enforcement of any right under
the Credit Documents, or otherwise), which is applicable to the payment of the
principal of, or interest on, the Loans, Unpaid Drawings, Commitment Commission
or Letter of Credit Fees, of a sum which with respect to the related sum or
sums received by other Lenders is in a greater proportion than the total of
such Obligation then owed and due to such Lender bears to the total of such
Obligation then owed and due to all of the Lenders immediately prior to such
receipt, then such Lender receiving such excess payment shall purchase for cash
without recourse or warranty from the other Lenders an interest in the
Obligations of the respective Credit Party to such Lenders in such amount as
shall result in a proportional participation by all the Lenders in such amount;
provided that if all or any portion of such excess amount is thereafter
recovered from such Lenders, such purchase shall be rescinded and the purchase
price restored to the extent of such recovery, but without interest.

 

(c)                                  Notwithstanding anything to the contrary
contained herein, the provisions of the preceding Sections 14.06(a) and (b)
shall be subject to the express provisions of this Agreement which require, or
permit, differing payments to be made to Non-Defaulting Lenders as opposed to
Defaulting Lenders.

 

14.07  Calculations;
Computations.  (a)  The financial statements to be furnished to
the Lenders pursuant hereto shall be made and prepared in accordance with
generally accepted accounting principles in the United States consistently
applied throughout the periods involved (except as set forth in the notes
thereto or as otherwise disclosed in writing by the Borrower to the Lenders); provided
that, (i) except as otherwise specifically provided herein, all computations of
the Applicable Commitment Commission Percentage, Excess Cash Flow and the
Applicable Margin, and all computations and all definitions (including
accounting terms) used in determining compliance with Sections 10.07 through
10.12, inclusive, shall utilize generally accepted accounting principles and policies
in conformity with those used to prepare the historical financial statements of
the Borrower referred to in Section 8.05(a) and (ii) to the extent
expressly provided herein, certain calculations shall be made on a Pro  Forma
Basis.

 

(b)                                 All computations of interest, RL
Commitment Commission, Initial Commitment Commission and other Fees hereunder
shall be made on the basis of a year of 360 days (or 365/366 days in the case
of interest on Base Rate Loans) for the actual number of days (including the
first day but excluding the last day; except that in the case of Letter of
Credit Fees 

 

130

 

and Facing Fees,
the last day shall be included) occurring in the period for which such
interest, Commitment Commission or Fees are payable.

 

14.08  GOVERNING LAW;
SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL.  (a) 
THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL, EXCEPT AS OTHERWISE
PROVIDED IN THE MORTGAGES, BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY
THE LAW OF THE STATE OF NEW YORK.  ANY
LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT
DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED
STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, IN EACH CASE WHICH ARE LOCATED IN
THE CITY OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT OR ANY
OTHER CREDIT DOCUMENT, THE BORROWER HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND
IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE NON-EXCLUSIVE
JURISDICTION OF THE AFORESAID COURTS. 
THE BORROWER HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH
COURTS LACK PERSONAL JURISDICTION OVER THE BORROWER, AND AGREES NOT TO PLEAD OR
CLAIM, IN ANY LEGAL ACTION PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY
OTHER CREDIT DOCUMENTS BROUGHT IN ANY OF THE AFOREMENTIONED COURTS, THAT SUCH
COURTS LACK PERSONAL JURISDICTION OVER THE BORROWER.  THE BORROWER FURTHER IRREVOCABLY CONSENTS TO
THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH
ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR
CERTIFIED MAIL, POSTAGE PREPAID, TO THE BORROWER AT ITS ADDRESS SET FORTH
OPPOSITE ITS SIGNATURE BELOW, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER
SUCH MAILING.  THE BORROWER HEREBY
IRREVOCABLY WAIVES ANY OBJECTION TO SUCH SERVICE OF PROCESS AND FURTHER
IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY ACTION OR PROCEEDING
COMMENCED HEREUNDER OR UNDER ANY OTHER CREDIT DOCUMENT THAT SERVICE OF PROCESS
WAS IN ANY WAY INVALID OR INEFFECTIVE. 
NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE ADMINISTRATIVE AGENT, THE
SYNDICATION AGENT, ANY LENDER OR THE HOLDER OF ANY NOTE TO SERVE PROCESS IN ANY
OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE
PROCEED AGAINST THE BORROWER IN ANY OTHER JURISDICTION.

 

(b)                                 THE BORROWER HEREBY IRREVOCABLY WAIVES
ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY
OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH
THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT BROUGHT IN THE COURTS REFERRED TO
IN CLAUSE (a) ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO
PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN
ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

131

 

(c)                                  EACH OF THE PARTIES TO THIS AGREEMENT
HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE
OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

 

14.09  Counterparts.  This Agreement may be executed in any number
of counterparts and by the different parties hereto on separate counterparts,
each of which when so executed and delivered shall be an original, but all of
which shall together constitute one and the same instrument.  A set of counterparts executed by all the
parties hereto shall be lodged with the Borrower and each Agent.

 

14.10  Effectiveness.  This Agreement shall become effective on the
date (the “Effective Date”) on which the Borrower, the Administrative Agent and
each of the Lenders shall have signed a counterpart hereof (whether the same or
different counterparts) and shall have delivered the same to the Administrative
Agent at the Notice Office or, in the case of the Lenders, shall have given to
the Administrative Agent telephonic (confirmed in writing), written or telex notice
(actually received) at such office that the same has been signed and mailed to
it.  The Administrative Agent will give
the Borrower and each Lender prompt written notice of the occurrence of the
Effective Date.

 

14.11  Headings Descriptive.  The headings of the several sections and
subsections of this Agreement are inserted for convenience only and shall not
in any way affect the meaning or construction of any provision of this
Agreement.

 

14.12  Amendment or
Waiver; etc.  (a)  Neither this Agreement nor any other Credit
Document nor any terms hereof or thereof may be changed, waived, discharged or
terminated unless such change, waiver, discharge or termination is in writing
signed by the respective Credit Parties party thereto and the Required Lenders;
provided that no such change, waiver, discharge or termination shall,
without the consent of each Lender (other than a Defaulting Lender) (with
Obligations being directly affected in the case of following clause (i)):

 

(i)                                     extend
the final scheduled maturity of any Loan or Note or extend the stated
expiration date of any Letter of Credit beyond the Revolving Loan Maturity
Date, or reduce the rate or extend the time of payment of interest or Fees
thereon (except in connection with the waiver of applicability of any
post-default increase in interest rates), or reduce the principal amount
thereof (it being understood that any amendment or modification to the
financial definitions in this Agreement or to Section 14.07(a) shall not
constitute a reduction in the rate of interest or Fees for the purposes of this
clause (i));

 

(ii)                                  release
all or substantially all of the Collateral (except as expressly provided in the
Credit Documents) under all the Security Documents;

 

(iii)                               amend,
modify or waive any provision of this Section 14.12 (except for technical
amendments with respect to additional extensions of credit pursuant to this
Agreement which afford the protections to such additional extensions of credit
of the type 

 

132

 

provided to the Term Loans and
the Revolving Loan Commitments on the Effective Date);

 

(iv)                              reduce
the percentage specified in the definition of Required Lenders (it being
understood that, with the consent of the Required Lenders, additional extensions
of credit pursuant to this Agreement may be included in the determination of
the Required Lenders on substantially the same basis as the extensions of Term
Loans and Revolving Loan Commitments are included on the Effective Date); or

 

(v)                                 consent
to the assignment or transfer by the Borrower of any of its rights and
obligations under this Agreement

 

; provided
further that no such change, waiver, discharge or termination shall:

 

(1)                                  increase
the Commitments of any Lender over the amount thereof then in effect without
the consent of such Lender (it being understood that waivers or modifications
of conditions precedent, covenants, Defaults or Events of Default or of a
mandatory reduction in the Total Commitment shall not constitute an increase of
the Commitment of any Lender, and that an increase in the available portion of
any Commitment of any Lender shall not constitute an increase of the Commitment
of such Lender);

 

(2)                                  without
the consent of each Issuing Lender, amend, modify or waive any provision of Section 2
or alter such Issuing Lender’s rights or obligations with respect to Letters of
Credit issued by it;

 

(3)                                  without
the consent of the Swingline Lender, alter the Swingline Lender’s rights or
obligations with respect to Swingline Loans;

 

(4)                                  without
the consent of each Agent affected thereby, amend, modify or waive any
provision of Section 13 or any other provision as same relates to the
rights or obligations of such Agent;

 

(5)                                  without
the consent of Collateral Agent, amend, modify or waive any provision relating
to the rights or obligations of the Collateral Agent;

 

(6)                                  without
the consent of the Supermajority Lenders (x) reduce the ratio set forth in Section 10.11
or (y) amend or modify the definition of Consolidated Working Capital Ratio to
the extent that such amendment or modification would have the effect of making
it easier for the Borrower to comply with Section 10.11;

 

(7)                                  except
in cases where additional extensions of term loans and/or revolving loans are
being afforded substantially the same treatment afforded to the Term Loans and
Revolving Loans pursuant to this Agreement as originally in effect, without the
consent of the Majority Lenders of each Tranche which is being allocated a
lesser prepayment, repayment or commitment reduction as a result of the actions
described below (or without the consent of the Majority Lenders of each Tranche
in the case of an amendment to the definition of Majority Lenders), amend the
definition of Majority 

 

133

 

Lenders or alter the required
application of any prepayments or repayments (or commitment reduction), as
between the various Tranches, pursuant to Section 4.01(a) or 4.02
(although the Required Lenders may waive, in whole or in part, any such
prepayment, repayment or commitment reduction, so long as the application, as
amongst the various Tranches, of any such prepayment, repayment or commitment
reduction which is still required to be made is not altered);

 

(8)                                  in
cases where any Incremental Term Loans are being added to an existing Tranche
of Term Loans pursuant to Section 1.14, without the consent of the
Majority Lenders of the respective Tranche (determined before giving effect to
the additions to such Tranche), alter any of the requirements contained in Section 1.14(c);
or

 

(9)                                  without
the consent of the Majority Lenders of each Tranche of Term Loans and, in the
case of Section 1.14(a)(xi), Revolving Loan Commitments amend or modify
the provisions of Section 1.14(a)(x) or (xi), as the case may be.

 

(b)                                 If, in connection with any proposed
change, waiver, discharge or termination of any of the provisions of this
Agreement as contemplated by clauses (i) through (v), inclusive, of the first
proviso to Section 14.12(a), the consent of the Required Lenders is obtained
but the consent of one or more of such other Lenders whose consent is required
is not obtained, then the Borrower shall have the right, so long as all
non-consenting Lenders whose individual consent is required are treated as
described in either clauses (A) or (B) below, to either (A) replace each such
non-consenting Lender or Lenders (or, at the option of the Borrower, if the
respective Lender’s consent is required with respect to less than all Tranches
of the Loans (or related Commitments), to replace only the Revolving Loan
Commitments and/or Loans of the respective non-consenting Lender which gave
rise to the need to obtain such Lender’s individual consent) with one or more
Replacement Lenders pursuant to Section 1.13 so long as at the time of such
replacement, each such Replacement Lender consents to the proposed change,
waiver, discharge or termination or (B) terminate such non-consenting Lender’s
Revolving Loan Commitment (if such Lender’s consent is required as a result of
its Revolving Loan Commitment) and/or repay each Tranche of outstanding Loans
of such Lender which gave rise to the need to obtain such Lender’s consent, in
accordance with Sections 3.02(b) and/or 4.01(b), provided that, unless
the Commitments that are terminated, and Loans repaid, pursuant to preceding
clause (B) are immediately replaced in full at such time through the addition
of new Lenders or the increase of the Commitments and/or outstanding Loans of
existing Lenders (who in each case must specifically consent thereto), then in
the case of any action pursuant to preceding clause (B) the Required Lenders
(determined after giving effect to the proposed action) shall specifically
consent thereto, provided  further that in any event the Borrower
shall not have the right to replace a Lender, terminate its Commitments or
repay its Loans solely as a result of the exercise of such Lender’s rights (and
the withholding of any required consent by such Lender) pursuant to the second
proviso to Section 14.12(a).

 

14.13  Survival.  All indemnities set forth herein including,
without limitation, in Sections 1.10, 1.11, 2.06, 4.04, 13.06 and 14.01 shall
survive the execution, delivery and termination of this Agreement and the Notes
and the making and repayment of the Obligations.

 

134

 

14.14  Domicile of
Loans.  Each Lender may transfer and
carry its Loans at, to or for the account of any office, Subsidiary or
Affiliate of such Lender. 
Notwithstanding anything to the contrary contained herein, to the extent
that a transfer of Loans pursuant to this Section 14.14 would, at the time
of such transfer, result in increased costs under Section 1.10, 1.11, 2.06
or 4.04 from those being charged by the respective Lender prior to such
transfer, then the Borrower shall not be obligated to pay such increased costs
(although the Borrower shall be obligated to pay any other increased costs of
the type described above resulting from changes after the date of the
respective transfer).

 

14.15  Register.  The Borrower hereby designates the
Administrative Agent to serve as its agent, solely for purposes of this Section 14.15,
to maintain a register (the “Register”) on which it will record the Commitments
from time to time of each of the Lenders, the Loans made by each of the Lenders
and each repayment in respect of the principal amount of the Loans of each
Lender.  Failure to make any such
recordation, or any error in such recordation, shall not affect the Borrower’s
obligations in respect of such Loans. 
With respect to any Lender, the transfer of the Commitments of such
Lender and the rights to the principal of, and interest on, any Loan made
pursuant to such Commitments shall not be effective until such transfer is
recorded on the Register maintained by the Administrative Agent with respect to
ownership of such Commitments and Loans and prior to such recordation all
amounts owing to the transferor with respect to such Commitments and Loans
shall remain owing to the transferor. 
The registration of assignment or transfer of all or part of any
Commitments and Loans shall be recorded by the Administrative Agent on the
Register only upon the acceptance by the Administrative Agent of a properly
executed and delivered Assignment and Assumption Agreement pursuant to Section 14.04(b).  Coincident with the delivery of such an
Assignment and Assumption Agreement to the Administrative Agent for acceptance
and registration of assignment or transfer of all or part of a Loan, or as soon
thereafter as practicable, the assigning or transferor Lender shall surrender
the Note (if any) evidencing such Loan, and thereupon one or more new Notes in
the same aggregate principal amount shall be issued to the assigning or
transferor Lender and/or the new Lender at the request of any such Lender.  The Borrower agrees to indemnify the
Administrative Agent from and against any and all losses, claims, damages and
liabilities of whatsoever nature which may be imposed on, asserted against or
incurred by the Administrative Agent in performing its duties under this Section 14.15.

 

14.16  Confidentiality.  (a) 
Subject to the provisions of clause (b) of this Section 14.16, each
Lender agrees that it will use its reasonable efforts not to disclose without
the prior consent of the Borrower (other than to its employees, auditors,
advisors or counsel or to another Lender if such Lender or such Lender’s
holding or parent company in its sole discretion determines that any such party
should have access to such information, provided such Persons shall be subject to
the provisions of this Section 14.16 to the same extent as such Lender)
any information with respect to the Borrower or any of its Subsidiaries which
is now or in the future furnished pursuant to this Agreement or any other
Credit Document and which is designated by the Borrower to the Lenders in
writing as confidential, provided that any Lender may disclose any such
information (i) as has become generally available to the public other than by
virtue of a breach of this Section 14.16(a) by the respective Lender, (ii)
as may be required or appropriate in any report, statement or testimony
submitted to any municipal, state or Federal regulatory body having or claiming
to have jurisdiction over such Lender or to the Federal Reserve Board or the
Federal Deposit Insurance Corporation or similar organizations (whether in the
United States or 

 

135

 

elsewhere) or their successors, (iii) as may be required or appropriate
in respect to any summons or subpoena or in connection with any litigation,
(iv) in order to comply with any law, order, regulation or ruling applicable to
such Lender, (v) to the Administrative Agent or the Collateral Agent and (vi)
to any prospective or actual transferee or participant in connection with any
contemplated transfer or participation of any of the Notes or Commitments or
any interest therein by such Lender, provided that such prospective
transferee agrees to be bound by the confidentiality provisions contained in
this Section 14.16.

 

(b)                                 The Borrower hereby acknowledges and
agrees that each Lender may share with any of its affiliates, and such
affiliates may share with such Lender any information related to the Borrower
or any of its Subsidiaries (including, without limitation, any non-public
customer information regarding the creditworthiness of the Borrower and its
Subsidiaries), provided such Persons shall be subject to the provisions of this
Section 14.16 to the same extent as such Lender.

 

14.17  Limitation
on Additional Amounts. 
Notwithstanding anything to the contrary contained in Section 1.10,
2.06 or 4.04, unless a Lender gives notice to the Borrower that the Borrower is
obligated to pay any amount under Section 1.10, 2.06 or 4.04 within 180
days after the later of (x) the date such Lender incurs the respective
increased costs, Taxes, loss, expense or liability, reduction in the amounts
received or receivable hereunder or reduction in return of capital or (y) the
date such Lender has actual knowledge of its incurrence of the respective
increased costs, Taxes, loss, expense or liability, reduction in the amounts
received or receivable hereunder or reduction in return of capital, such Lender
shall only be entitled to be compensated for any such amount by the Borrower
pursuant to Section 1.10, 2.06 or 4.04, as the case may be, to the extent
that any such amounts are incurred or suffered on or after the date which
occurs 180 days prior to such Lender giving notice to the Borrower that it is
obligated to pay the respective amounts pursuant to Section 1.10, 2.06 or
4.04, as the case may be; provided, however, that if the circumstances giving
rise to such claims have a retroactive effect, such 180-day period shall be
extended to include the period of such retroactive effect.  This Section 14.17 shall not be
applicable to any Section of this Agreement other than Sections 1.10, 2.06
and 4.04.

 

14.18  USA Patriot Act
Notice.  Each Lender that is subject
to the Patriot Act (as hereinafter defined) and the Administrative Agent (for
itself and not on behalf of any Lender) hereby notifies the Borrower on behalf
of itself and its Subsidiaries that pursuant to the requirements of the USA
Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) (as in effect from time to time, the “Patriot Act”), it is required to
obtain, verify and record information that identifies each Credit Party and/or
its subsidiaries, which information includes the name and address of such
Credit Party and/or its Subsidiaries and other information that will allow such
Lender or the Administrative Agent, as applicable, to identify such Credit
Party and/or its Subsidiaries in accordance with the Patriot Act (collectively
the foregoing information, the “Patriot Act Information”).  The Borrower agrees that from time to time
and upon the request of any Lender or the Administrative Agent it shall
promptly provide (or cause to be promptly provided) to such Lender or the
Administrative Agent with any Patriot Act Information requested thereby.

 

*     *    
*

 

136

 

SCHEDULE 14.03

 

IN WITNESS WHEREOF, the
parties hereto have caused their duly authorized officers to execute and
deliver this Agreement as of the date first above written.

 

 

	
   

  	
  NASH-FINCH COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ LeAnne M. Stewart

  	
   

  
	
   

  	
   

  	
  Title: Chief Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DEUTSCHE
  BANK TRUST COMPANY

  AMERICAS, Individually and as Administrative

  Agent 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Scottye Lindsey 

  	
   

  
	
   

  	
   

  	
  Title: Director

  	
   

  

 

137

 

	
   

  	
  SIGNATURE PAGE TO THE CREDIT AGREEMENT,
  DATED AS OF NOVEMBER 12, 2004, AMONG NASH-FINCH COMPANY, , THE LENDERS
  PARTY HERETO FROM TIME TO TIME, DEUTSCHE BANK TRUST COMPANY AMERICAS, AS
  ADMINISTRATIVE AGENT, HARRIS TRUST AND SAVINGS BANK, AS SYNDICATION AGENT, AND
  GENERAL ELECTRIC CAPITAL CORPORATION AND U.S. BANK NATIONAL ASSOCIATION, AS
  DOCUMENTATION AGENTS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GENERAL ELECTRIC CAPITAL

  CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ 
  Brian P. Schwinn

  	
   

  
	
   

  	
   

  	
   Title: Duly Authorized Signatory

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  GMAC COMMERCIAL FINANCE LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ 
  Naruty Winter

  	
   

  
	
   

  	
   

  	
   Title: Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  HARRIS TRUST AND SAVINGS BANK

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ 
  C. Scott Place

  	
   

  
	
   

  	
   

  	
   Title: Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  NATIONAL CITY BANK

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ 
  Thomas E. Redmond

  	
   

  
	
   

  	
   

  	
   Title: Senior Vice President

  	
   

  

 

138

 

	
   

  	
  COÖPERATIEVE CENTRALE
  RAIFFEISEN-BOERENLEENBANK B.A., COÖPERATIEVE CENTRALE
  RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK NEDERLAND”, NEW YORK BRANCH

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ 
  Ivan Rodriguez

  	
   

  
	
   

  	
   

  	
   Title: Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ 
  Brett Delfino

  	
   

  
	
   

  	
   

  	
   Title: Executive Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WELLS FARGO
  BANK, NATIONAL

  ASSOCIATION

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ 
  Kent A. Paulson

  	
   

  
	
   

  	
   

  	
   Title: Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  U.S. BANK NATIONAL ASSOCIATION

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ 
  Michael J. Staloch

  	
   

  
	
   

  	
   

  	
   Title: Senior Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF TOKYO-MITSUBISHI, LTD.

  CHICAGO BRANCH

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ 
  Patrick McCue

  	
   

  
	
   

  	
   

  	
   Title: Vice President & Manager

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  LASALLE BANK N.A.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ 
  John Garzlaff

  	
   

  
	
   

  	
   

  	
   Title: Senior Vice President

  	
   

  

 

139

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