Document:

Exhibit 10.35

 

January 31, 2008

 

Mr. Dale
S. Barker

ProEco Energy
Company

P.O. Box
26

Belle Fourche,
South Dakota 57717

 

Re:          Project for Ethanol Plants

 

Dear Mr. Barker:

 

In our previous letter dated December 15, 2007 (“December Letter”),
the parties agreed to revise the agreements relating to their relationship
regarding the 56 million gallons per year ethanol plant in South Dakota (“Potential
Project”).  The purpose of this
letter (this “Letter”) is to set forth additional binding agreements
between O2Diesel Corporation, a Delaware corporation (“O2Diesel”), and
ProEco Energy Company, Inc. (“ProEco”) and certain selling
shareholders of ProEco, with respect to the Potential Project.  This Letter shall become effective on the day
it is countersigned by you.

 

1.             Loan Agreement.  The parties agree to extend the maturity date
of the Amended and Restated Term Loan Agreement, dated as of December 22,
2006, and as amended and restated on September 14, 2007 and December 15,
2007 (“Loan Agreement”) from January 31, 2008 to February 29,
2008 (“Maturity Date”), and the parties shall execute a revised Amended
and Term Loan Agreement, as attached hereto as Exhibit A.  As of January 31, 2008, there is
$1,419,424.25 principal and interest outstanding (the “Loan”).  The Loan is evidenced by the Secured
Promissory Note, as attached hereto as Exhibit B, and the Secured
Promissory Note, as attached hereto as Exhibit C.

 

2.             Share Exchange Agreement.  Section 6.1(f) of the Share
Exchange Agreement (the “Exchange Agreement”), dated as of January 12,
2007, by and between O2Diesel and ProEco, sets forth the automatic termination
date of the Exchange Agreement.  Since
the parties agree to extend the Maturity Date, the automatic termination date
of the Exchange Agreement is also extended to February 29, 2008.

 

3.             Miscellaneous.

 

a.     Except as expressly set forth herein, the Loan
Agreement, the Exchange Agreement and December Letter remain in full force
and effect in accordance with their respective terms.

 

 

b.     This Letter may be executed in any number of
counterparts, which taken together shall constitute one and the same document.

 

Please sign and date this Letter in the space
provided below to confirm the binding agreement and return a copy to the
undersigned.  We look forward to continuing
working together with you.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  O2DIESEL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alan Rae

  
	
   

  	
   

  	
  Alan Rae, Chief Executive Officer

  

 

Accepted and agreed.

 

PROECO ENERGY COMPANY, INC.

 

 

	
  By:

  	
  /s/ Dale S. Baker

  	
   

  
	
   

  	
  Dale S. Barker

  	
   

  

 

Date:  February 2, 2008

 

2

 

EXECUTION COPY

 

EXHIBIT A

 

AMENDED AND RESTATED TERM
LOAN AGREEMENT

 

Dated as of December 22,
2006, and as amended and restated on January 31, 2008

 

between

 

ProEco Energy
Company (the “Borrower”)

 

and

 

Dale S. Barker
and Barbara Pyle, as Pledgors

 

and

 

O2Diesel
Corporation (the “Lender” and the “Collateral Agent”)

 

 

AMENDED AND RESTATED TERM
LOAN AGREEMENT

 

This Amended and Restated Term Loan Agreement (this “Agreement”),
dated as of December 22, 2006, (the “Effective Date”) and amended and
restated as of January 31, 2008, is entered into by and among ProEco
Energy Company, a South Dakota corporation (the “Borrower”), the Pledgors (as
defined herein) and O2Diesel Corporation, a Delaware corporation as lender (the
“Lender”) and as collateral agent (the “Collateral Agent”).

 

RECITALS:

 

WHEREAS, the Borrower requires capital for the
purchase of an option (the “Option”) to purchase parcels of land (collectively,
the “Parcels” and individually, a “Parcel”) on which a new fuel-grade ethanol
plant (the “Potential Project”) is to be constructed;

 

WHEREAS, the Borrower is willing to secure all of its
Obligations (as hereinafter defined) by granting to the Collateral Agent, for
the benefit of itself and the Lender, security interests in and a lien upon all
of its property and assets now owned or hereafter acquired by the Borrower;

 

WHEREAS, certain stockholders and officers of the
Borrower will benefit from the Loans (as hereinafter defined) made by the Lender
to the Borrower and are willing to pledge collateral as security for payment
and performance of all of the Obligations of the Borrower and to grant to the
Collateral Agent, for the benefit of itself and the Lender, a security interest
in and a lien upon all shares of the issued and outstanding common stock of the
Borrower (the “Common Stock”) held by such officers;

 

WHEREAS, the Lender is willing to provide the Borrower
with such capital on the terms and conditions hereafter provided; and

 

WHEREAS, the Borrower has requested, and the Lender
has agreed to provide, (i) an extension of the Maturity Date of the Loans
(as defined below) and (ii) an increase in the aggregate principal amount
of the Delayed Draws (as defined below) that may be borrowed pursuant to this
Agreement.

 

NOW, THEREFORE, in consideration of the undertakings
set forth herein and other good and valuable consideration, the receipt and
sufficiency of which hereby is acknowledged, the parties hereto agree as
follows:

 

ARTICLE I

 

DEFINITIONS

 

As used in this Agreement:

 

“Business Day” means, with respect to any borrowing or
payment, a day other than Saturday or Sunday on which banks are open for
business in the State of Delaware.

 

“Change in Control” means (i) the
failure of Dale S. Barker and Barbara Pyle to own, beneficially and of record,
the issued and outstanding shares of voting stock of the Borrower held by

 

 

them as of the Closing Date (appropriately adjusted to reflect stock
splits, stock dividends, reverse stock splits and similar events), (ii) any
merger, consolidation, reorganization, recapitalization, or other business
combination involving the Borrower, in which the stockholders of the Borrower
immediately prior thereto do not own, directly or indirectly, outstanding
voting securities representing more than fifty percent (50%) of the combined
outstanding voting power of the surviving entity in such merger, consolidation,
reorganization, recapitalization or other business combination; (iii) the
sale of all, or substantially all, of the assets of the Borrower; or (iv) the
sale of voting securities of the Borrower in a transaction or a series of
related transactions to any person (or group of persons acting in concert) that
results in such person (or group of persons) (together with their affiliates)
owning more than fifty percent (50%) of the outstanding voting securities of
the Borrower; provided that “Change of Control” shall not include any
transaction involving the Lender acquiring voting securities or assets or
merging with the Borrower.

 

“Closing Date” means December 22, 2006, or such later date as may
be agreed by the parties hereto.

 

“Collateral” shall have the meaning ascribed to such term in the
Security Agreement.

 

“Credit Parties” (each individually, a “Credit Party”) shall mean the
Borrower and each of the Pledgors.

 

“Disclosure Schedule” means the disclosure schedule to this Agreement
delivered to the Lender by the Borrower upon execution and delivery of this
Agreement.

 

“Environmental Condition” means any contamination or damage to the
environment caused by or relating to the use, handling, storage, treatment,
recycling, generation, transportation, release, spilling, leaching, pumping,
pouring, emptying, discharging, injection, escaping, disposal, dumping or
threatened release of Hazardous Materials by the Borrower or any other
Person.  With respect to claims by
employees or any other third parties, Environmental Condition shall also
include the exposure of Persons to amounts of Hazardous Materials in amounts
that have been determined to be deleterious to human health.

 

“Environmental Laws” means all currently
applicable federal, state and local laws, ordinances, rules and
regulations and standards, policies and other governmental requirements,
administrative rulings and court judgments and decrees, including all
amendments, and requirements applicable under common law that relate to (1) pollution;
(2) the protection of human health and safety; (3) the protection or
regulation of the environment, including without limitation, air, soils,
wetlands, surface and underground water; (4) aboveground or underground
storage tank regulation or removal; (5) wildlife; (6) protection or
regulation of natural resources; (7) radioactive materials, including
without limitation radon; (8) indoor air quality; and (9) chemicals,
pesticides, mold or fungus or similar substances.  “Environmental Laws” include, without
limitation, the Comprehensive Environmental Response, Compensation and
Liability Act, 42 U.S.C. Section 9601, et seq., the
Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., the Toxic Substance Control Act, 15 U.S.C. Section 2601,
et seq., the Federal Water Pollution
Control Act, 33 U.S.C. Section 1251, et seq., the
Hazardous Materials Transportation Act, 49 U.S.C. 5101, et seq.,
the Clean Air Act, 42 U.S.C. Section 7401, et seq.,
the Safe Drinking Water Act, 42 U.S.C. Section 300f, et seq.,
the Occupational Safety and Health Act, 29 U.S.C. Section 651, et seq., the Emergency

 

 

Planning and Community Right
to Know Act of 1986, 42 U.S.C. 11001, et seq., the
Atomic Energy Act, 42 U.S.C. Section 2014, et seq.,
the National Environmental Policy Act, 42 U.S.C. Section 4321, et seq., the Endangered Species Act, 16 U.S.C. Section 1531,
et seq., the Federal Insecticide, Fungicide &
Rodenticide Act, 7 U.S.C. Section 136, et seq., and
their state analogs, all applicable state superlien or environmental clean-up
or disclosure statutes in any state in which the Borrower operates or conducts
any business, and all similar local laws, and all implementing regulations.

 

“Environmental Noncompliance” means any
violation of any Environmental Law.

 

“Hazardous Materials” shall mean any
materials regulated as hazardous or toxic under applicable Environmental Laws,
or any other material regulated, or that could result in the imposition of
liability, under Environmental Laws, including, without limitation, petroleum,
petroleum products, fuel oil, crude oil or any fraction thereof, derivatives or
byproducts of petroleum products or fuel oil, natural gas, mold, hazardous
substances, toxic substances, polychlorinated biphenyls, any materials
containing more than one percent (1%) asbestos by weight and any other
substance determined to present a deleterious effect on human health or the
environment.

 

“Intellectual Property” means all of the following as
they exist in any jurisdiction throughout the world, in each case, to the
extent owned by, licensed to, or otherwise used by the Borrower:  (a) patents, patent applications and the
inventions, designs and improvements described and claimed therein, patentable
inventions, and other patent rights (including any divisionals, continuations,
continuations-in-part, substitutions, or reissues thereof, whether or not
patents are issued on any such applications and whether or not any such
applications are amended, modified, withdrawn, or refiled) (collectively, “Patents”);
(b) trademarks, service marks, trade dress, trade names, brand names,
Internet domain names, designs, logos, or corporate names (including, in each
case, the goodwill associated therewith), whether registered or unregistered,
and all registrations and applications for registration thereof (collectively, “Trademarks”);
(c) works of authorship and all copyrights therein, including all renewals
and extensions, copyright registrations and applications for registration, and
non-registered copyrights (collectively, “Copyrights”); (d) trade secrets,
confidential business information, concepts, ideas, designs, research or
development information, processes, procedures, techniques, technical
information, specifications, operating and maintenance manuals, engineering
drawings, methods, know-how, data, mask works, discoveries, inventions,
modifications, extensions, improvements, and other proprietary rights (whether
or not patentable or subject to copyright, trademark, or trade secret
protection) (collectively, “Trade Secrets”); (e) all domain name
registrations, web sites and web pages and related rights, items and
documentation related thereto (collectively, “Internet Assets”); (f) computer
software programs, including all source code, object code, and documentation
related thereto and all software modules, tools and databases (“Software”); (g) mask
works, and (h) all licenses, and sublicenses, and other agreements or
permissions related to the preceding property.

 

“IT Assets” means computers, computer software (except
for “off the shelf” or “shrink-wrap” software), firmware, middleware, servers,
workstations, routers, hubs, switches, data communication lines, and all other
information technology equipment, and all associated documentation.

 

“Loan Documents” means this Agreement, the LOI, the
Notes and any Security Documents.

 

 

“LOI” means that certain letter of intent, dated November 30,
2006, signed by the Lender and acknowledged by the Borrower.

 

“Maturity Date” means February 29, 2008.

 

“Mortgage” (or “Mortgages”) means any mortgage, deed
of trust, deed to secure debt and other instrument, from time to time executed
by the Borrower for the purpose of granting the Collateral Agent, for its
benefit and the benefit of the Lender, a lien on real property of the Borrower,
in form and substance satisfactory to the Lender.

 

“Obligations” means (i) all current or future
unpaid principal of and accrued and unpaid interest (including without
limitation, interest accruing during the pendency of any bankruptcy,
insolvency, receivership or other similar proceeding, regardless of whether
allowed or allowable in such proceeding) on the Notes when and as due, whether at
maturity, by acceleration, upon one or more dates set for prepayment or
otherwise; (ii) all other monetary obligations, including but not limited
to, interest, fees, charges; and (iii) the due and punctual performance of
all covenants, agreements, obligations and liabilities of the Borrower now or
hereafter due arising under or in connection with the Loan Documents, expenses,
indemnities, whether primary, secondary, direct, contingent, fixed or otherwise
(including monetary obligations incurred during the pendency of any bankruptcy,
insolvency, receivership or other similar proceeding, regardless of whether
allowed or allowable in such proceeding) of the Borrower now or hereafter due
under or in connection with the Loan Documents.

 

“Person” means any corporation, natural person, firm,
joint venture, partnership, trust, unincorporated organization, enterprise,
government or any department or agency of any government.

 

“Pledge Agreement” means that certain Pledge Agreement
dated as of the date hereof, by and among the Pledgors and the Collateral
Agent.

 

“Pledged Collateral” shall have the meaning ascribed
to such term in the Pledge Agreement.

 

“Pledgors” means Dale S. Barker and Barbara Pyle.

 

“Purchase Agreement” means that any definitive
agreement entered into between the Borrower and the Lender pursuant to which
the Lender acquires all or a portion of the Borrower’s assets or voting
securities.

 

“Security Documents” means the Security Agreement, the
Pledge Agreement and such other agreements, instruments, documents, financing
statements, warehouse receipts, bills of lading, notices of assignment of
accounts, schedules of accounts assigned, mortgages and other written matter
necessary or reasonably requested by the Lender to perfect and maintain
perfected the Lender’s first priority security interest in the Collateral.

 

“Security Agreement” means that certain Security Agreement, dated as of
the date hereof, by and between the Borrower and the Pledgors as Grantors and
the Collateral Agent.

 

 

“Solvent” means, with respect to any Person, that (i) the fair
value of all of such Person’s properties and assets is in excess of the total
amount of its debts (within the meaning of the U.S. Bankruptcy Code); (ii) it
is able to pay its debts as they mature; (iii) it does not have
unreasonably small capital for the business in which it is engaged or for any
business or transaction in which it is about to engage; and (iv) it is not
“insolvent” as such term is defined in Section 101(31) of the U.S.
Bankruptcy Code.

 

“Trains Project” means the project to build two 50 million gallon
trains in connection with the Potential Project as described in the LOI.

 

“Transaction” means the acquisition by the Lender of 80% of the Common
Stock of the Borrower in accordance with the terms and conditions set forth in
the Purchase Agreement.

 

“U.S. Bankruptcy Code” means Title 11 of the United States Code, 11
U.S.C.  Section 101, et  seq.

 

The words “herein,” “hereof” and “hereunder” and other
words of similar import refer to this Agreement as a whole, including the
Exhibits and Schedules hereto, as the same may from time to time be amended,
modified or supplemented, and not to any particular section, subsection or
clause contained in this Agreement.

 

Wherever from the context it appears appropriate, each
term stated in either the singular or plural shall include the singular and the
plural, and pronouns stated in the masculine, feminine or neuter gender shall
include the masculine, the feminine and the neuter.

 

ARTICLE II

 

THE LOANS

 

2.1           Loans.

 

(a)           Subject to satisfaction of the terms and
conditions set forth in this Agreement, the Lender agrees to make a term loan
to the Borrower on the Closing Date in an aggregate principal amount of
$150,000 (the “Initial Loan”), the proceeds of which shall be used by the
Borrower solely to purchase the Option.

 

(b)           The Borrower may request that the Lender
make additional term loans to the Borrower in an aggregate principal amount of
up to $1,250,000 (each a “Delayed Draw”, and together with the Initial Loan, the
“Loans”) by delivering a written request to the Lender specifying the amount of
the Delayed Draw, the Business Day on which the Borrower wishes to make the
Delayed Draw and the proposed use of the funds provided by the Delayed Draw.  The Lender may, in its absolute discretion,
agree to provide a Delayed Draw to the Borrower, in each case in the amount and
on the Business Day specified in the applicable Borrowing Request, subject to
the conditions set forth in Section 3.2 of this Agreement.

 

 

2.2           Repayment.

 

(a)           The Borrower shall repay the Loans,
together with all interest due thereon, and all other amounts owing under this
Agreement or the Loan Documents in connection with the Loans in full on the
Maturity Date; notwithstanding any of the foregoing, upon the Lender closing on
a transaction to provide financing for the Trains Project, all amounts owing
under this Agreement or the Loan Documents in connection with the Loans shall
be converted into an intercompany loan from the Lender to the Borrower (the “Intercompany
Loan”) evidenced by a promissory note to be repaid on a date mutually agreed
upon by the parties.

 

(b)           The obligation of the Borrower to repay
the principal amount of the Loans, and any and all interest which accrues
thereon, shall be evidenced by a series of promissory notes executed and
delivered by the Borrower in the form of Exhibit A hereto (collectively,
the “Notes” and each individually, a “Note”).

 

(c)           In the event that the Lender informs the
Borrower that the Lender either (i) is unable to obtain financing for the
Trains Project or (ii) chooses to participate in another opportunity
related to an ethanol plant or the ethanol industry, the parties shall use
commercially reasonable efforts to renegotiate mutually agreeable repayment
terms of all amounts then owing under this Agreement or the Loan Documents in
connection with the Loans.

 

2.3           Interest.  Interest on
the Loans shall accrue at a per annum rate equal to seven percent (7%) (the “Applicable
Rate”), provided, however, during any period in which a Default (as defined
below), shall exist, interest on the Loans shall accrue at a rate per annum
equal to two percent (2%) above the Applicable Rate.  Interest shall be calculated for actual days
elapsed on the basis of a

360-day year.  Interest on the Loans
shall not be paid in cash but instead automatically shall be added to the
outstanding principal balance of the Loans on the first (1st) Business Day of each calendar month prior to the
Maturity Date and shall be treated in all respects as outstanding principal
under the Loans.

 

2.4           Method of Payment. 
All payments of principal and fees hereunder shall be made in
immediately available funds in United States Dollars to the Lender at the
Lender’s address specified pursuant to Section 8.11, by noon (local time)
on the date the same shall be due.  The
Loans may be prepaid in whole or in part without penalty.  Amounts repaid or prepaid with respect to the
Loans may not be reborrowed, provided that the Borrower shall give the Lender
written notice of its intention to prepay any of the outstanding amounts, which
notice shall specify the amount to be so prepaid and the date of such
prepayment, not less than two (2) Business Days prior to such prepayment.

 

 

ARTICLE III

 

CONDITIONS PRECEDENT

 

3.1           Conditions to the Initial Loan. 
The obligation of the Lender to make the Initial Loan shall be subject
to the following conditions precedent:

 

(a)           each of the Credit Parties, to the extent
applicable to such Credit Party, shall have furnished to the Lender, or caused
to be furnished to the Lender (unless otherwise waived by Lender in writing),
the following, in form and substance reasonably satisfactory to the Lender and
its counsel, each dated as of the Effective Date (or such other date as shall
be acceptable to the Lender):

 

(i) each of the
following Loan Documents to which it is a party, duly executed by an authorized
officer and the other parties thereto: this Agreement, a Note in the principal
amount of $150,000, the Security Agreement and the Pledge Agreement;

 

(ii) evidence of all
filings of the financing statements with respect to the Security Agreement and
the other Security Documents; searches or other evidence as to the absence of
any liens on the Collateral; and evidence that all other actions with respect
to the liens created by the Security Documents have been taken as are necessary
or appropriate to perfect such liens and establish a first priority security
interest in favor of the Lender in the Collateral, including the Pledged
Collateral; and

 

(iii) such other
documents as the Lender or its counsel may reasonably request.

 

(b)           the representations and warranties of
each Credit Party made in Article IV of this Agreement and the other Loan
Documents shall be true and correct when made, and shall be true in on and as
of the Closing Date (except to the extent such representations and warranties
specifically relate to an earlier date, in which case such representations and
warranties shall be true and correct as of such earlier date);

 

(c)           each Credit Party shall have performed
and complied with all agreements, obligations and conditions contained in this
Agreement that are required to be performed or complied with by it on or before
the Closing Date; and

 

(d)           the Lender shall have received an opinion
letter, dated as of the Closing Date and addressed to the Collateral Agent and
the Lender, from counsel to the Borrower, in a form that is reasonably
satisfactory to the Lender.

 

3.2           Conditions
to Subsequent Drawings.  The
obligation of the Lender to lend additional amounts for any Delayed Draw shall
be subject to the following conditions precedent and solely at the discretion
of the Lender:

 

(a)           no Default (as defined below) has
occurred or is continuing or would result from the Delayed Draw;

 

(b)           as of the date that the Delayed Draw is
made, all of the representations and warranties of the Borrower contained in Article IV
and in the other Loan Documents shall be true and correct (except to the extent
such representations and warranties specifically relate to an earlier date, in
which case such representations and warranties shall be true and correct as of
such earlier date, and except for changes after the Closing Date which are not
prohibited by any Loan Document);

 

(c)           the Borrower shall have performed and
complied with all agreements, obligations and conditions contained in this
Agreement that are required to be performed or complied

 

 

with by it in order to make a Delayed Draw, including the Post-Closing
Conditions Subsequent, if applicable;

 

(d)           the Lender shall have completed its first
level due diligence review of the Borrower’s business, assets, contracts,
prospects and financial condition and the technical feasibility of the
Potential Project, and the Lender shall be satisfied in all respects with the
results of such first level due diligence review; and

 

(e)           the Borrower shall have delivered (i) a
Note, duly executed by an authorized officer, in the principal amount of the
applicable Delayed Draw and (ii) any documents related to the proposed use
of Funds for the Delayed Draw as the Lender shall reasonably request.

 

3.3           Post-Closing
Conditions Subsequent.

 

(a)           Within thirty (30) days following the
Closing Date, the Borrower shall enter into an executed account control
agreement, in a form reasonably satisfactory to the Lender, with respect to
each account maintained by the Borrower.

 

(b)           Within ten (10) days following the
Closing Date, the Borrower shall deliver to the Lender evidence in a form
acceptable to the Lender that the Borrower has used the funds advanced in the
Initial Loan to make a payment toward the purchase of the Option.

 

ARTICLE IV

 

REPRESENTATIONS AND WARRANTIES

 

Except as set forth on the Disclosure Schedule
delivered by the Borrower to the Lender, each section of which shall only
qualify the representation or warranty in the correspondingly numbered Section of
this Agreement, each Credit Party, as applicable, represents and warrants to
the Lender that on the date hereof:

 

4.1           Organization and Qualification. 
The Borrower is a corporation duly organized, validly existing and in
good standing under the laws of the state of South Dakota, is qualified to
transact business in the jurisdictions listed on the Disclosure Schedule and
has the requisite corporate power and authority and legal capacity to own and
operate its properties and assets, to conduct its business as now conducted and
as currently proposed to be conducted in the future, to enter into, execute and
deliver this Agreement and the Loan Documents, to issue the Notes and to
perform its obligations under this Agreement and the Loan Documents and any
other agreement to which the Borrower is a party, the execution and delivery of
which are contemplated hereby.  The
Borrower is duly qualified to transact business and is in good standing, if
applicable, in each jurisdiction in which the failure to so qualify would have
a material adverse effect on its business, condition, results or operations,
assets or liabilities (a “Material Adverse Effect”).

 

4.2           Authorization; Enforceable Obligations. 
Except as set forth on the Disclosure Schedule, the execution, delivery
and performance by the Borrower of each of the Loan Documents, to the extent it
is a party thereto, and the creation of all liens provided for herein and
therein:  (a)  have been and will be
duly authorized by all necessary or proper action; (b) are not in
contravention

 

 

of
any provision of the Borrower’s by-laws or charter; (c) will not violate
any law or regulation, or any order or decree of any court or governmental
instrumentality; (d) will not conflict with or result in the breach or
termination of, constitute a default under, or accelerate any performance
required by, any indenture, mortgage, deed of trust, lease, agreement or other
instrument to which the Borrower is a party or by which the Borrower or any of
its property is bound (except for such conflict, breach, termination, default
or acceleration as could not reasonably be expected to have a Material Adverse
Effect); (e) will not result in the creation or imposition of any lien
upon any of the property of the Borrower other than those in favor of the
Lender, all pursuant to the Loan Documents; and (f) do not require the
consent or approval of any governmental body, agency, authority or any other
Person, except such consents as have been obtained.  Each of the Loan Documents delivered in
connection herewith at such time shall have been duly executed and delivered
for the benefit of or on behalf of the Borrower, and each shall then constitute
a legal, valid and binding obligation of the Borrower, enforceable against it
in accordance with its terms.

 

4.3           No Default.  The Borrower
is not, and after giving effect to this Agreement shall not be, in default in
the payment or performance of any contractual obligation where such default
could have a material adverse effect on the business, properties, assets,
liabilities or condition (financial or otherwise) on the Borrower.

 

4.4           Financial Information; Minute Books,
Solvency.

 

(a)           All balance sheets, all statements of
operations, stockholders’ equity and cash flows, and all other financial
information of the Borrower which have been or shall hereafter be furnished by
or on behalf of the Borrower to the Lender for the purposes of or in connection
with this Agreement or any transaction contemplated hereby, have been prepared
in accordance with GAAP consistently applied throughout the periods involved
and present fairly in all material respects the matters reflected therein
subject, in the case of unaudited statements, to changes resulting from normal
year-end audit adjustments and except as to the absence of footnotes.  As of the date here, the Borrower has no
material contingent liabilities or material liabilities for taxes, long-term
leases or forward or long-term commitments except as set forth on the
Disclosure Schedule.

 

(b)           The Borrower is Solvent and, after giving
effect to the borrowings under this Agreement, will be Solvent.

 

4.5           Investment Company Act. 
No Credit Party is, or after giving effect to the transactions
contemplated by the Loan Documents will be, an “investment company” or an
“affiliated person” or “promoter” of, or “principal underwriter” of or for, an
“investment company,” within the meaning of the Investment Company Act of 1940,
as amended, or any other federal or state law limiting its ability to incur
debt or to execute, deliver or perform the Loan Documents to which it is a
party.

 

4.6           Intellectual Property.

 

(a)           The Disclosure Schedule sets forth a true
and complete list of (i) all Intellectual Property owned by the Borrower,
indicating for each item that is registered the registration or application
number and the applicable filing jurisdiction and (ii) all Intellectual
Property contracts (other than licenses for commercial “off-the-shelf” or
“shrink-wrap” software that

 

 

are not material to the business, operations, financial condition or
performance of the Borrower, taken as a whole). 
The Borrower exclusively owns (beneficially, and of record where
applicable) all right, title and interest in and to all Intellectual Property
set forth on the Disclosure Schedule (the “Scheduled Intellectual Property”)
free and clear of all liens not otherwise permitted in this Agreement,
exclusive licenses and non-exclusive licenses not granted in the ordinary
course of business.  The Scheduled
Intellectual Property is not subject to any outstanding order, judgment,
decree, or agreement adversely affecting the use thereof by the Borrower or its
rights thereto, and is valid, subsisting and enforceable.  The Borrower does not, and has not in the
past five years, infringed or otherwise violated the Intellectual Property
rights of any third party.  The Borrower has
sufficient rights to use all Intellectual Property used in its business as
presently conducted, all of which rights shall survive the consummation of the
transactions contemplated by this Agreement unchanged There is no litigation,
opposition, cancellation, proceeding, objection, or claim pending, asserted, or
threatened against the Borrower concerning the ownership, validity,
registerability, enforceability, infringement, use of, or licensed right to use
any Intellectual Property, except as set forth on the Disclosure Schedule.  To the knowledge of the Borrower, no valid
basis exists for any such litigation, opposition, cancellation, proceeding,
objection, or claim.  To the Borrower’s
knowledge, no person is violating any Scheduled Intellectual Property right
that the Borrower holds exclusively.

 

(b)           The Scheduled Intellectual Property that
is registered has been duly registered with, filed in, or issued by, as the
case may be, the United States Patent and Trademark Office or such other filing
offices, domestic or foreign, as applicable, and such registration, filings,
issuances, and other actions remain in full force and effect, and are current
and unexpired.  The Borrower has properly
executed and recorded all documents necessary to perfect its title to all
Scheduled Intellectual Property, and has filed all documents and paid all
taxes, fees, and other financial obligations required to maintain in force and
effect all such items.

 

(c)           The Borrower has taken all reasonable
measures to protect the confidentiality and value of all Trade Secrets that are
owned, used, or held by the Borrower, and, to the Borrower’s knowledge, such
Trade Secrets have not been used, disclosed to, or discovered by any person
except pursuant to valid and appropriate non-disclosure and/or license
agreements that have not been breached. 
All current and prior employees of the Borrower have executed valid
intellectual property and confidentiality agreements for the benefit of the
Borrower, and to the Borrower’s knowledge, no current or prior employee is in
default or breach of any term of any such agreement.

 

(d)           The IT Assets operate and perform in all
material respects in accordance with their documentation and functional
specifications and otherwise as required by the Borrower in connection with its
business, and have not materially malfunctioned or failed within the past three
(3) years.  To the Borrower’s
knowledge, no person has gained unauthorized access to the IT Assets.  The Credit Parties have implemented
reasonable backup and disaster recovery technology consistent with industry
practices.

 

4.7           Insurance.  All policies
of insurance in effect of any kind or nature owned by or issued to the
Borrower, (a) as of the Closing Date are listed on the Disclosure
Schedule, (b) are in full force and effect, and (c) are of a nature
and provide such coverage as is customarily carried by

 

 

companies
engaged in similar businesses as the Borrower. 
The Borrower does not provide any of its insurance through
self-insurance.

 

4.8           Environmental Matters. 
Except as set forth on the Disclosure Schedule, the Borrower has not
received any written, or to the knowledge of any Credit Party oral, claim or
notice alleging that the Borrower is not in compliance with or is in violation
of any Environmental Law, or has liability or responsibility under any
Environmental Law.  There are no pending
or, to the knowledge of any Credit Party threatened, investigations, inquiries,
administrative proceedings, actions, suits, claims, charges, complaints,
demands, notices or legal proceedings against the Borrower, the Borrower’s
business or assets, under Environmental Laws, including those that involve or
relate to Environmental Conditions, Environmental Noncompliance or the release,
use, disposal or arranging for disposal of any Hazardous Materials on or from
any real property used, leased or owned by the Borrower.  Except as set forth on the Disclosure
Schedule, the Borrower has not released any Hazardous Materials on, under or
about any real property used, leased or owned by the Borrower in quantities that
are required to be reported under or that requires investigation or remediation
pursuant to Environmental Law or that otherwise is in violation of any
requirement of any Environmental Law. 
The Borrower is in compliance with Environmental Laws.  The Borrower has not generated, stored,
treated, handled, disposed of, or arranged to dispose of, Hazardous Materials
in a manner or to a location that could reasonably be expected to result in
liability to the Borrower under Environmental Laws.  The Borrower has not exposed any employee or
other individual to any Hazardous Materials or conditions that could reasonably
be expected to form the basis for any present or future action, suit,
proceeding, hearing, investigation, charge, complaint, claim, or demand for
damage to, or investigation and remediation of, any site, location or body of
water (surface or subsurface), or any illness of or personal injury to any
employee or individual.

 

4.9           Accounts.  The
Disclosure Schedule lists all accounts, whether a deposit account or a
securities account, of the Borrower.

 

4.10         Additional Representations and Warranties. 
All representations and warranties made in the Security Agreement are
true, correct and complete as of the Effective Date, except to the extent such
representations and warranties are specifically made as of a particular date
(in which case such representations and warranties are true and correct as of
such particular date).

 

ARTICLE V

 

COVENANTS

 

For so
long as the Loans remain outstanding under this Agreement, unless the Lender
shall otherwise consent in writing, each Credit Party covenants and agrees, as
applicable, that from, and after the date hereof (except as otherwise provided
in this Agreement, or unless the Lender has given its prior written consent):

 

5.1           Notices.  It shall give
the Collateral Agent prompt written notice of any (a) Default (as defined
below), (b) any notice received related to any environmental matter
described in Section 4.8 of this Agreement, (c) any material
amendment to the Borrower’s bylaws or charter, or (d) the occurrence of
any event, condition or other circumstance that, singly or in the aggregate,
could

 

 

reasonably
be expected to result in a Material Adverse Effect, in each case accompanied by
copies of all notices given or received by such Credit Party with respect to
such event or condition.

 

5.2           Maintenance of a Perfected, First
Priority Security Interest.  It shall
execute all documents and take all actions necessary to perfect and maintain at
all times the Lender’s first priority security interest in all of the
Collateral (including the Pledged Collateral as defined in the Pledge
Agreement), now owned or acquired at any later date by such Credit Party.

 

5.3           Real Estate. 
If the Borrower shall acquire a fee or leasehold interest in real
estate, the Borrower will execute a first priority Mortgage, in form and
substance reasonably satisfactory to the Lender, in favor of the Collateral
Agent, for its benefit and the benefit of the Lender, and shall deliver to the
Collateral Agent such title insurance policies, surveys and landlords’ estoppel
agreements with respect thereto as the Collateral Agent or the Lender shall
reasonably request.

 

5.4           Deposit Accounts. 
The Borrower shall not maintain any account without an effective account
control agreement, in form and substance reasonably satisfactory to the Lender.

 

5.5           Execution of Supplemental Instruments. 
It shall execute and deliver to the Lender from time to time, upon
demand, such supplemental agreements, statements, assignments and transfers, or
instructions or documents relating to the Collateral, and such other
instruments as the Lender may request, in order that the full intent of this
Agreement may be carried into effect.

 

5.6           Corporate Name; Domicile. 
The Borrower shall not amend or modify its Articles of Incorporation to
change its corporate name.  No Credit
Party shall change its domicile without providing at least ten (10) Business
Days’ prior written notice to the Collateral Agent.

 

5.7           Change of Control. 
No Change of Control shall occur.

 

ARTICLE VI

 

DEFAULTS

 

The occurrence of any one or more of the following
events shall constitute a default hereunder (each, a “Default”):

 

6.1           Any representation or warranty made in
this Agreement by any Credit Party to the Lender shall be materially false on
the date as of which the same is made.

 

6.2           Nonpayment of any amount of principal or
accrued, unpaid interest due under any Note as and when the same is due and
payable.

 

6.3           The breach by the Borrower of any of the
covenants contained in Article V hereof.

 

6.4           The occurrence of any default or event of
default under any of the other Loan Documents.

 

6.5           The Borrower shall (i) have an order
for relief entered with respect to it under the federal bankruptcy laws as now
or hereafter in effect, (ii) make an assignment for the benefit of

 

 

creditors,
(iii) apply for, seek, consent to, acquiesce in, or have appointed for it
or any substantial portion of its property a receiver, custodian, trustee,
examiner, liquidator or similar official for it or any substantial part of its
property, (iv) institute any proceeding seeking an order for relief under
the Federal bankruptcy laws as now or hereafter in effect or seeking to
adjudicate it a bankrupt or insolvent, or seeking dissolution, winding up,
liquidation, reorganization, arrangement, adjustment or composition of it or
its debts under any law relating to bankruptcy, insolvency or reorganization or
relief of debtors or fail to file an answer or other pleading denying the
material allegations of any such proceeding filed against it, or (v) take
any corporate action to authorize or effect any of the foregoing actions set
forth in this Section 6.5.

 

ARTICLE VII

 

ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES

 

7.1           Acceleration. 
If any Default described in Section 6.5 occurs with respect to the
Borrower, the Obligations shall immediately become due and payable without any
election, notice or action on the part of the Lender.  If any other Default occurs, the Lender may
declare the Obligations to be due and payable, whereupon the Obligations shall
become immediately due and payable, without presentment, demand, protest or
notice of any kind, all of which the Borrower hereby expressly waives.

 

7.2           Amendments.  The Lender
and the Credit Parties may enter into written agreements supplemental hereto
for the purpose of adding or modifying any provisions to the Loan Documents or
changing in any manner the rights of the Lender or any Credit Party hereunder
or waiving any Default hereunder.  To be
effective, any such amendment or waiver must be in writing and signed by the
Lender and each Credit Party.

 

7.3           Preservation of Rights, No Adverse Impact. 
No delay or omission of the Lender or the Collateral Agent to exercise
any right under this Agreement or any of the Loan Documents shall impair such
right or be construed to be a waiver of any Default or an acquiescence
therein.  Any single or partial exercise
of any such right shall not preclude other or further exercise thereof or the
exercise of any other right, and no waiver, amendment or other variation of the
terms, conditions or provisions of the Loan Documents whatsoever shall be valid
unless in writing signed by the Lender, and then only to the extent in such
writing specifically set forth.  All
remedies contained in the Loan Documents, or by law afforded shall be
cumulative and all shall be available to the Lender until the Obligations have
been paid in full.

 

7.4           Remedies.

 

(a)           Upon the occurrence and during the
continuance of a Default, the Lender may proceed to protect and enforce to the
Lender’s rights by suit in equity, action of law and/or other appropriate
proceeding either for specific performance of any covenant or condition
contained in this Agreement, any Loan Document or in any instrument or document
delivered to the Lender pursuant hereto, or in the exercise of any rights,
remedies or powers granted in this Agreement, any Loan Document and/or any such
instrument or document.  The Lender may
proceed to declare the obligations under this Agreement or any Loan Document to
be due and payable pursuant to Section 7.1 hereof and the Lender may
proceed to enforce payment of such documents as provided herein, or

 

 

in any Loan Document, and may offset and apply toward the payment of
such amount any indebtedness of any Credit Party to the Borrower.

 

(b)           Upon the occurrence and during the
continuance of a Default, the Lender may apply as any Credit Party’s
attorney-in-fact for any Intellectual Property rights, and sell, lease or
license the Collateral to third persons or associations without being liable to
such Credit Party on account of any losses, damage or depreciation that may
occur as a result thereof so long as the Lender shall act reasonably and in
good faith; and at the Lender’s option and without notice to such Credit Party
(except as specifically herein provided) the Lender may sell, license, assign
and deliver the whole or any part of the Collateral, or any substitute therefor
or any addition thereto, at public or private sale, for cash, upon credit, or
for future delivery, at such prices and upon such terms as the Lender deems
advisable.  The Lender shall give the
applicable Credit Party at least ten (10) Business Days’ by hand delivery
at or by United States first-class mail, postage prepaid (in which event notice
shall be deemed to have been given when so deposited in the mail), to the
address specified herein, of the time and place of any public or private sale
or other disposition.

 

(c)           If any Default described in Section 6.2
occurs with respect to the Borrower, the Lender may, at its absolute
discretion, exercise the Option to purchase the Parcels or any Parcel.

 

7.5           Application of Proceeds. 
Any and all proceeds of any Collateral realized or obtained by the
Lender upon exercise of its rights and remedies hereunder, shall be applied to
the amounts outstanding under this Agreement or any other Loan Document, after
payment of any and all costs and expenses, fees and commission and taxes of
such sale, collection or other realization, in accordance with the following:

 

(a)           Any and all proceeds of any Collateral
shall first be applied to the payment of any and all expenses, charges or other
amounts which may be due and owing under this Agreement or the other Loan
Documents; and

 

(b)           Any and all proceeds of any Collateral
remaining after application as provided in paragraph (a) above shall be
applied to the payment of principal, interest or charges outstanding with
respect to the Loans or under any Note or the other Loan Documents; and

 

(c)           Any surplus remaining after application
as provided in paragraphs (a) and (b) above, shall be paid to the
Borrower, or its successors or assigns, or to whomsoever may be lawfully
entitled to receive the same.

 

ARTICLE VIII

 

GENERAL PROVISIONS

 

8.1           Survival of Representations. 
All representations and warranties of the Borrower contained in this
Agreement shall survive delivery of any Note and the making of the Loans herein
contemplated.

 

8.2           Termination of Security Interest and
Related Obligations.  In the event that the Loans are converted to
an Intercompany Loan as provided for in Section 2.2 of this Agreement, the

 

 

covenants
set forth in Sections 5.2 through 5.4 of this Agreement and any and all
obligations of the Credit Parties to provide security under or arising out of
any other Loan Document shall terminate and the Collateral Agent will release
the Collateral pursuant to the terms of the applicable Security Documents,
except that any indemnities provided to the Lender in its capacity as “Lender”
or as “Collateral Agent” shall survive the termination of any provisions of
this Agreement or any Loan Document.

 

8.3           Headings.  Section headings
in this Agreement are for convenience of reference only, and shall not govern
the interpretation of any of the provisions of this Agreement.

 

8.4           Entire Agreement. 
The Loan Documents embody the entire agreement and understanding between
the Credit Parties and the Lender and supersede all prior agreements and
understandings between the Credit Parties and the Lender relating to the
subject matter thereof.

 

8.5           No Third Party Beneficiary. 
This Agreement shall not be construed so as to confer any right or
benefit upon any Person other than the parties to this Agreement and their
respective successors and assigns.

 

8.6           Expenses.  Upon the
occurrence of a Default, and so long as a Default is continuing, the Credit
Parties shall pay to the Lender on demand all expenses reasonably incurred in
connection with the collection and enforcement of all Obligations under the
Loan Documents including, without limitation, all reasonable attorneys’ fees,
and all reasonable costs incurred by the Lender in connection with the
collection and enforcement of the Obligations and in connection with any
proceeding commenced by or against the Borrower under the U.S. Bankruptcy Code.

 

8.7           Severability of Provisions. 
Any provision in this Agreement that is held to be inoperative,
unenforceable, or invalid in any jurisdiction shall, as to that jurisdiction,
be inoperative, unenforceable, or invalid without affecting the remaining
provisions in that jurisdiction or the operation, enforceability, or validity
of that provision in any other jurisdiction, and to this end the provisions of
this Agreement are declared to be severable.

 

8.8           Nonliability of the Lender. 
The relationship between the Borrower and the Lender shall be solely
that of borrower and lender, and that between the Pledgors and the Lender shall
be solely that of pledgor and secured creditor. 
The Lender shall have no fiduciary responsibilities to any Credit
Party.  The Lender undertakes no
responsibility to any Credit Party to review or inform the any Credit Party of
any matter in connection with any phase of any Credit Party’s business or
operations.

 

8.9           CHOICE OF LAW. 
THIS AGREEMENT AND THE LOAN DOCUMENTS (OTHER THAN THOSE CONTAINING A
CONTRARY EXPRESS CHOICE OF LAW PROVISION) SHALL BE GOVERNED BY AND CONSTRUED
AND ENFORCED IN ACCORDANCE WITH THE LAWS (AND NOT THE LAW OF CONFLICTS) OF THE
STATE OF DELAWARE.

 

8.10         Jurisdiction/Jury Trial Waiver/Other
Matters.

 

(a)           The Lender and each Credit Party
acknowledge and agree that any controversy which may arise under this Agreement
or the relationship of such Credit Party and the

 

 

Lender established hereby, would be based upon difficult and complex
issues.  Accordingly, to the fullest
extent permitted by law, each Credit Party and the Lender hereby waive trial by
jury in any action or proceeding of any kind or nature in any court in which an
action may be commenced by or against such Credit Party arising out of this
Agreement or by reason of any other cause or dispute whatsoever between such
Credit Party and the Lender of any kind or nature.

 

(b)           Each Credit Party and the Lender agree
that the United States District Court for Delaware or any state court located
in the State of Delaware shall have jurisdiction to hear and determine any
claims or disputes between such Credit Party and the Lender pertaining directly
or indirectly to this Agreement or to any matter arising herefrom.  Each Credit Party expressly submits and
consents in advance to such jurisdiction in any action or proceeding commenced
in such court.  Each Credit Party and the
Lender waive any objection that they may now or hereafter have to the venue of
any proceeding in any such court or that such proceeding was brought in an
inconvenient forum and each agrees not to plead or claim the same.

 

(c)           Each Credit Party hereby waives personal
service of any summons and complaint, or other process or papers issued
therein, and agrees that service of such summons and complaint, or other process
or papers may be made by United States mail, postage prepaid addressed to such
Credit Party at the address set forth below his or her signature hereto.  Should such Credit Party fail to appear or
answer any summons, complaint, process or papers so served within thirty days
after the mailing thereof, he or she shall be deemed in default and an order
and/or judgment may be entered against him or her or her as prayed for in such
summons, complaint, process or papers.

 

8.11         Further Assurances. 
Each Credit Party at its own expense, shall do, make, execute and
deliver all such additional and further acts, deeds, assurances, documents,
instruments and certificates as the Lender may reasonably require, including,
without limitation, (a) executing, delivering and filing financing
statements and continuation statements under the Uniform Commercial Code of the
State of Delaware, (b) obtaining governmental and other third party
consents and approvals, and (c) obtaining waivers from mortgagees and
landlords.

 

8.12         Successors and Assigns. 
The terms and provisions of this Agreement and the Loan Documents shall
be binding upon and inure to the benefit of the Credit Parties and the Lender
and their respective successors and assigns, except that the Credit Parties
shall not have the right to assign its rights or obligations under the Loan
Documents and any assignment in violation thereof shall be null and void.

 

8.13         Giving Notice. 
All notices and other communications provided to any party hereto under
this Agreement or any other Loan Document shall be in writing or by facsimile
and addressed or delivered to such party at their addresses as follows (unless
designated in writing to the other parties): (i) if to any Credit Party,
at the address set forth below such Credit Party’s name on the signature page hereto
and (ii) if to the Lender, at the address set forth the Lender’s name on
the signature page hereto.  Any
notice, if mailed and properly addressed with postage prepaid, shall be deemed
given three (3) Business Days after being sent; any notice, if transmitted
by facsimile, shall be deemed given when transmitted.

 

8.14         Counterparts. 
This Agreement may be executed in any number of counterparts, all of
which taken together shall constitute one agreement, and any of the parties
hereto may execute this

 

 

Agreement
by signing any such counterpart. 
Facsimiled and photocopied signatures to this Agreement shall be
valid.  This Agreement shall be effective
when it has been executed by each Credit Party and the Lender.

 

[Remainder of page intentionally left
blank; signature page follows]

 

 

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

 

 

	
   

  	
  PROECO ENERGY COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dale S. Barker

  
	
   

  	
  Name:

  	
  Dale S. Barker

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
  Address:

  	
  P.O. Box
  261

  
	
   

  	
   

  	
  Belle
  Fourche, South Dakota 57717

  
	
   

  	
   

  	
   

  
	
   

  	
  Telephone:

  	
   

  
	
   

  	
  Facsimile:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  O2DIESEL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David H. Shipman

  
	
   

  	
  Name:

  	
  David H. Shipman

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
  Address:

  	
  100 Commerce
  Drive, Suite 301

  
	
   

  	
   

  	
  Newark,
  Delaware 19713

  
	
   

  	
   

  	
   

  
	
   

  	
  Telephone:

  	
  (302) 266-6000

  
	
   

  	
  Facsimile:

  	
  (302) 266-7076

  
				

 

 

	
   

  	
  PLEDGORS:

  
	
   

  	
   

  
	
   

  	
  DALE S. BARKER

  
	
   

  	
   

  
	
   

  	
  /s/ Dale S.
  Barker

  
	
   

  	
  Address:

  	
   

  
	
   

  	
  Telephone:

  	
   

  
	
   

  	
  Facsimile:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BARBARA PYLE

  
	
   

  	
   

  
	
   

  	
  /s/ Barbara Pyle

  
	
   

  	
  Address:

  	
   

  
	
   

  	
  Telephone:

  	
   

  
	
   

  	
  Facsimile:

  	
   

  

 

 

EXECUTION COPY

 

EXHIBIT B

 

SECURED
PROMISSORY NOTE

 

	
  $150,000

  	
   

  	
  Newark, Delaware

  	
   

  
	
   

  	
   

  	
  December 26, 2006

  	
   

  

 

ProEco Energy Company, Inc., a South
Dakota corporation (the “Company”), FOR VALUE RECEIVED, hereby unconditionally
promises to pay to the order of O2Diesel Corporation (“O2Diesel” or the “Holder”),
in U.S. dollars in immediately available funds, the principal amount of One Hundred Fifty Thousand and NO/100 ($150,000)
(the “Principal Amount”), together with interest on the unpaid principal
balance of this Secured Promissory Note (the “Note”) outstanding from
time to time from the date hereof, at the rate provided in the Loan Agreement
(as defined below).  The books and
records of the Holder shall be conclusive as to the unpaid principal amount of
this Note at any time outstanding, absent manifest error.

 

This Note is issued pursuant to the terms of the Loan
Agreement, dated December 22, 2006 (as such agreement may from time to
time be amended, restated, modified or supplemented, the “Loan Agreement”)
to which the Company and the Holder are parties, to which reference is hereby
made for a statement of all of the terms and conditions applicable to the Loan
evidenced, hereby.  Capitalized terms
used but not otherwise defined herein shall have the meanings ascribed to such
terms in the Loan Agreement.

 

1.             Loan.  The Holder hereby loans to the Company on the
date hereof the sum of the Principal Amount. 
The principal amount of the indebtedness evidenced hereby shall be due
and payable on the dates specified in the Loan Agreement.  Interest thereon shall be paid until such
principal amount is paid in full in accordance with and at such interest rates
and at such times as are specified in the Loan Agreement.

 

2.             Default.  Upon the occurrence and during the
continuance of a Default, this Note may, as provided in the Loan Agreement, and
without demand, notice or legal process of any kind (other than notices
expressly provided for in the Loan Documents), be declared, and immediately
shall become, due and payable.  In
addition, the Holder shall have the right to exercise other remedies as
provided in the Loan Agreement.  This
Note is secured by the Security Documents.

 

3.             Waivers.

 

(a)           The Company hereby waives presentment, demand for
payment, notice of dishonor, notice of protest, and protest in connection with
the delivery, acceptance, performance, or default of this Note.

 

(b)           No delay by the Holder in exercising any power or
right hereunder shall operate as a waiver of any power or right, nor shall any
single or partial exercise of any power or right preclude other or further
exercise thereof, or the exercise of any other power or right hereunder 

 

 

or
otherwise.  No waiver or modification of
the terms hereof shall be valid unless set forth in writing by the Holder.

 

4.             Secured Obligations.  In order to induce the Holder to loan to the
Company the Principal Amount of this Note, the Company has delivered, or caused
to be delivered, to O2Diesel, as collateral agent for the Holder and any other
holder of Notes (the “Collateral Agent”), the Security Documents, pursuant to
which the Pledgors (as defined in that certain Security Agreement, dated as of December 22,
2006, by and among the Borrower, the Pledgors and the Secured Creditor and
Collateral Agent (the “Security Agreement”)) has granted to the Collateral
Agent, on behalf of the Holder and any other holder of Notes, as security and
collateral for the payment and performance of its obligations hereunder, a first
priority security interest in all of the property and assets of the Company and
certain assets of each of the Pledgors, whether now existing or hereafter
arising, and all as more specifically described, and on the terms and
conditions set forth in, the Security Agreement.

 

5.             General.

 

(a)           Successors: Assignment.  This Note and the obligations and rights of
the Company hereunder shall be binding upon and inure to the benefit of the
Company and the Holder and their respective successors.  The Company may not assign this Note or any
obligations hereunder without the prior written consent of the Holder.

 

(b)           Changes.  Changes in or additions to this Note may be
made, or compliance with any term, covenant, agreement, condition or provision
set forth herein, may be omitted or waived (either generally or in a particular
instance and either retroactively or prospectively) upon written consent of the
Holder.

 

(c)           Notices.  All notices, demands or other communications
to be given or delivered under or by reason of the provisions of this Note
shall be in writing and shall be deemed to have been given when delivered
personally to the recipient, faxed with confirmation of receipt, sent to the
recipient by reputable overnight courier service (charges prepaid) or mailed to
the recipient by certified or registered mail, return receipt requested and
postage prepaid.  Such notices, demands
and other communications shall be sent to the Holder at the address indicated
below:

 

	
  O2Diesel Corporation

  	
   

  	
   

  
	
  100 Commerce Drive, Suite 301

  	
   

  	
   

  
	
  Newark, Delaware 19713

  	
   

  	
   

  
	
  Attn:  David Shipman, Chief
  Financial Officer

  	
   

  	
   

  
	
  Tel:

  	
  (302) 266-6000

  	
   

  	
   

  
	
  Fax:

  	
  (302) 266-7076

  	
   

  	
   

  

 

With a copy to:

 

	
  Arnold & Porter LLP

  	
   

  	
   

  
	
  1600 Tysons Boulevard, Suite 900

  	
   

  	
   

  
	
  McLean, Virginia 22102

  	
   

  	
   

  
	
  Attn:  Kevin J.
  Lavin, Esq.

  	
   

  	
   

  
	
  Tel:

  	
  (703) 720-7011

  	
   

  	
   

  
	
  Fax:

  	
  (703) 720-7399

  	
   

  	
   

  

 

2

 

and to the Company at the address indicated
below:

 

	
  ProEco Energy Company.

  	
   

  	
   

  
	
  P.O. Box
  261

  	
   

  	
   

  
	
  Belle Fourche, South Dakota 57717

  	
   

  	
   

  
	
  Attn:  Dale S. Barker

  	
   

  	
   

  
	
  Tel:

  	
  (605)

  	
   

  	
   

  
	
  Fax:

  	
  (605)

  	
   

  	
   

  

 

With a copy to:

 

	
  Buckmaster Law Offices, PC

  	
   

  	
   

  
	
  P.O. Box 726

  	
   

  	
   

  
	
  Belle Fourche, South Dakota 57717

  	
   

  	
   

  
	
  Attn:  Wesley W. Buckmaster

  	
   

  	
   

  
	
  Tel:

  	
  (605) 892-2623

  	
   

  	
   

  
	
  Fax:

  	
  (605) 892-6337

  	
   

  	
   

  

 

or to such other address or to the attention of such other person as
the recipient party has specified by prior written notice to the sending party.

 

(d)           Severability.  If any term or provision of this Note shall
be held invalid, illegal or unenforceable, the validity of all other terms and
provisions hereof shall in no way be affected thereby.

 

6.             Governing Law.

 

(a)           This Note shall be construed and enforced in
accordance with, and the rights of the parties shall be governed by, the laws
of the State of Delaware, without regard to choice of law principles.

 

(b)           The parties hereto hereby submit to the jurisdiction
of the state and federal courts located in the State of Delaware for the
purposes of any suit, action or other proceeding relating to any dispute under
this Note.  The Company hereby waives any
right it may have to transfer or change the venue of any litigation between
itself and the Holder in accordance with this sub-section.

 

(c)           THE COMPANY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY
RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING WHICH IN ANY MANNER ARISES
OUT OF OR IN CONNECTION WITH OR IS IN ANY WAY RELATED TO THIS NOTE OR ANY OF
THE TRANSACTIONS CONTEMPLATED HEREIN.

 

[SIGNATURE PAGE FOLLOWS]

 

3

 

IN WITNESS WHEREOF, this Note has been executed and delivered
on the date first above written by the undersigned duly authorized
representative of the Company.

 

 

	
   

  	
  PROECO ENERGY COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dale Barker

  
	
   

  	
  Name:

  	
  Dale Barker

  
	
   

  	
  Title:

  	
  President

  

 

4

 

EXECUTION COPY

 

EXHIBIT C

 

SECURED
PROMISSORY NOTE

 

	
   

  	
   

  	
  Newark, Delaware

  	
   

  

 

ProEco Energy Company, Inc., a South
Dakota corporation (the “Company”), FOR VALUE RECEIVED, hereby
unconditionally promises to pay to the order of O2Diesel Corporation (“O2Diesel”
or the “Holder”), in U.S. dollars in immediately available funds, the
Principal Amount (as defined below) together with interest on the unpaid
principal balance of this Secured Promissory Note (the “Note”)
outstanding from time to time from the date hereof, at the rate provided in the
Loan Agreement (as defined below).  The
books and records of the Holder shall be conclusive as to the unpaid Principal
Amount of this Note at any time outstanding, absent manifest error.

 

This Note is issued pursuant to the terms of the
Loan Agreement, dated December 22, 2006 (as such agreement may from time
to time be amended, restated, modified or supplemented, the “Loan Agreement”)
to which the Company and the Holder are parties, to which reference is hereby
made for a statement of all of the terms and conditions applicable to the Loan
evidenced, hereby.  Capitalized terms
used but not otherwise defined herein shall have the meanings ascribed to such
terms in the Loan Agreement.

 

1.             Loan.  The Holder hereby loans to the Company on the
date hereof the sum of the Principal Amount. 
As used in this Note, the “Principal Amount” means the aggregate
amount loaned to the Company by the Holder as reflected on Schedule A to
this Note.  Schedule A reflects
all amount loaned to the Company by the Holders as of December 15,
2007.  The Company shall amend Schedule
A to include any such loans to the Company by the Holder or any of its
affiliates made after such date.  The
Principal Amount of the indebtedness evidenced hereby shall be due and payable
on the dates specified in the Loan Agreement. 
Interest thereon shall be paid until such Principal Amount is paid in
full in accordance with and at such interest rates and at such times as are
specified in the Loan Agreement.

 

2.             Default.  Upon the occurrence and during the
continuance of a Default, this Note may, as provided in the Loan Agreement, and
without demand, notice or legal process of any kind (other than notices
expressly provided for in the Loan Documents), be declared, and immediately
shall become, due and payable.  In
addition, the Holder shall have the right to exercise other remedies as
provided in the Loan Agreement.  This
Note is secured by the Security Documents.

 

3.             Waivers.

 

(a)           The Company hereby waives presentment, demand for
payment, notice of dishonor, notice of protest, and protest in connection with
the delivery, acceptance, performance, or default of this Note.

 

(b)           No delay by the Holder in exercising any power or
right hereunder shall operate as a waiver of any power or right, nor shall any
single or partial exercise of any power or right 

 

 

preclude
other or further exercise thereof, or the exercise of any other power or right
hereunder or otherwise.  No waiver or
modification of the terms hereof shall be valid unless set forth in writing by
the Holder.

 

4.             Secured Obligations.  In order to induce the Holder to loan to the
Company the Principal Amount of this Note, the Company has delivered, or caused
to be delivered, to O2Diesel, as collateral agent for the Holder and any other
holder of Notes (the “Collateral Agent”), the Security Documents, pursuant to
which the Pledgors (as defined in that certain Security Agreement, dated as of December 22,
2006, by and among the Borrower, the Pledgors and the Secured Creditor and
Collateral Agent, as such agreement may from time to time be amended, restated,
modified or supplemented (the “Security Agreement”)) has granted to the
Collateral Agent, on behalf of the Holder and any other holder of Notes, as
security and collateral for the payment and performance of its obligations
hereunder, a first priority security interest in all of the property and assets
of the Company and certain assets of each of the Pledgors, whether now existing
or hereafter arising, and all as more specifically described, and on the terms
and conditions set forth in, the Security Agreement.

 

5.             General.

 

(a)           Successors: Assignment.  This Note and the obligations and rights of
the Company hereunder shall be binding upon and inure to the benefit of the
Company and the Holder and their respective successors.  The Company may not assign this Note or any
obligations hereunder without the prior written consent of the Holder.

 

(b)           Changes.  Changes in or additions to this Note may be
made, or compliance with any term, covenant, agreement, condition or provision
set forth herein may be omitted or waived (either generally or in a particular
instance and either retroactively or prospectively), upon written consent of
the Holder.

 

(c)           Notices.  All notices, demands or other communications
to be given or delivered under or by reason of the provisions of this Note
shall be in writing and shall be deemed to have been given when delivered
personally to the recipient, faxed with confirmation of receipt, sent to the
recipient by reputable overnight courier service (charges prepaid) or mailed to
the recipient by certified or registered mail, return receipt requested and
postage prepaid.  Such notices, demands
and other communications shall be sent to the Holder at the address indicated
below:

 

	
  O2Diesel Corporation

  	
   

  	
   

  
	
  100 Commerce Drive, Suite 301

  	
   

  	
   

  
	
  Newark, Delaware 19713

  	
   

  	
   

  
	
  Attn:  David Shipman, Chief
  Financial Officer

  	
   

  	
   

  
	
  Tel:

  	
  (302) 266-6000

  	
   

  	
   

  
	
  Fax:

  	
  (302) 266-7076

  	
   

  	
   

  

 

With a copy to:

 

	
  Arnold & Porter LLP

  	
   

  	
   

  
	
  1600 Tysons Boulevard, Suite 900

  	
   

  	
   

  
	
  McLean, Virginia 22102

  	
   

  	
   

  
	
  Attn:  Kevin J.
  Lavin, Esq.

  	
   

  	
   

  
	
  Tel:

  	
  (703) 720-7011

  	
   

  	
   

  
	
  Fax:

  	
  (703) 720-7399

  	
   

  	
   

  

 

 

and to the Company at the address indicated
below:

 

	
  ProEco Energy Company.

  	
   

  	
   

  
	
  P.O. Box
  261

  	
   

  	
   

  
	
  Belle Fourche, South Dakota 57717

  	
   

  	
   

  
	
  Attn:  Dale S. Barker

  	
   

  	
   

  
	
  Tel:

  	
  (605)

  	
   

  	
   

  
	
  Fax:

  	
  (605)

  	
   

  	
   

  

 

With a copy to:

 

	
  Buckmaster Law Offices, PC

  	
   

  	
   

  
	
  P.O. Box 726

  	
   

  	
   

  
	
  Belle Fourche, South Dakota 57717

  	
   

  	
   

  
	
  Attn:  Wesley W. Buckmaster

  	
   

  	
   

  
	
  Tel:

  	
  (605) 892-2623

  	
   

  	
   

  
	
  Fax:

  	
  (605) 892-6337

  	
   

  	
   

  

 

or to such other address or to the attention of such other person as
the recipient party has specified by prior written notice to the sending party.

 

(d)           Severability.  If any term or provision of this Note shall
be held invalid, illegal or unenforceable, the validity of all other terms and
provisions hereof shall in no way be affected thereby.

 

6.             Governing Law.

 

(a)           This Note shall be construed and enforced in
accordance with, and the rights of the parties shall be governed by, the laws
of the State of Delaware, without regard to choice of law principles.

 

(b)           The parties hereto hereby submit to the jurisdiction
of the state and federal courts located in the State of Delaware for the
purposes of any suit, action or other proceeding relating to any dispute under
this Note.  The Company hereby waives any
right it may have to transfer or change the venue of any litigation between
itself and the Holder in accordance with this sub-section.

 

(c)           THE COMPANY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY
RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING WHICH IN ANY MANNER ARISES
OUT OF OR IN CONNECTION WITH OR IS IN ANY WAY RELATED TO THIS NOTE OR ANY OF
THE TRANSACTIONS CONTEMPLATED HEREIN.

 

[SIGNATURE PAGE FOLLOWS]

 

 

IN WITNESS WHEREOF, this Note has been executed and delivered
on the date first above written by the undersigned duly authorized representative
of the Company.

 

 

	
   

  	
  PROECO ENERGY COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dale Barker

  
	
   

  	
  Name:

  	
  Dale Barker

  
	
   

  	
  Title:

  	
  President

  

 

 

SCHEDULE A

 

	
  Date

  	
   

  	
  Amount

  	
   

  
	
  1/17/2007

  	
   

  	
  125,000.00

  	
   

  
	
  3/14/2007

  	
   

  	
  125,000.00

  	
   

  
	
  4/25/2007

  	
   

  	
  75,000.00

  	
   

  
	
  5/14/2007

  	
   

  	
  65,000.00

  	
   

  
	
  5/30/2007

  	
   

  	
  65,000.00

  	
   

  
	
  6/12/2007

  	
   

  	
  65,000.00

  	
   

  
	
  6/27/2007

  	
   

  	
  65,000.00

  	
   

  
	
  7/10/2007

  	
   

  	
  65,000.00

  	
   

  
	
  7/25/2007

  	
   

  	
  65,000.00

  	
   

  
	
  8/15/2007

  	
   

  	
  65,000.00

  	
   

  
	
  9/07/2007

  	
   

  	
  65,000.00

  	
   

  
	
  10/01/2007

  	
   

  	
  65,000.00

  	
   

  
	
  10/15/2007

  	
   

  	
  65,000.00

  	
   

  
	
  10/25/2007

  	
   

  	
  40,000.00

  	
   

  
	
  11/01/2007

  	
   

  	
  65,000.00

  	
   

  
	
  11/15/2007

  	
   

  	
  40,000.00

  	
   

  
	
  11/30/2007

  	
   

  	
  40,000.00

  	
   

  
	
  12/14/2007

  	
   

  	
  40,000.00

  	
   

  
	
  1/18/2008

  	
   

  	
  10,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total:

  	
   

  	
  $

  	
  1,210,000.00Exhibit 10.17

EXECUTION COPY

 

 

SECOND
AMENDED AND RESTATED CREDIT AGREEMENT

 

Dated
as of June 18, 2007

 

among

 

LPL
INVESTMENT HOLDINGS INC.,

as
Holdings,

 

LPL
HOLDINGS, INC.,

as
Borrower,

 

The
Several Lenders

from Time to Time Parties Hereto,

 

GOLDMAN
SACHS CREDIT PARTNERS L.P.,

as Sole Lead Arranger, Sole Bookrunner and Syndication Agent,

 

MORGAN
STANLEY SENIOR FUNDING, INC.,

as Administrative Agent,

 

and

 

MORGAN
STANLEY & CO.,

as Collateral Agent

 

 

	
   

  
	
  $942,389,062.50 Senior Secured Credit Facilities

  
	
   

  

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
  Section
  1.

  	
   

  	
  Definitions

  	
   

  	
  2

  
	
  1.1

  	
   

  	
  Defined Terms

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section
  2.

  	
   

  	
  Amount and Terms of
  Credit Facilities

  	
   

  	
  40

  
	
  2.1

  	
   

  	
  Loans

  	
   

  	
  40

  
	
  2.2

  	
   

  	
  Minimum Amount of Each Borrowing; Maximum Number of Borrowings

  	
   

  	
  42

  
	
  2.3

  	
   

  	
  Notice of Borrowing

  	
   

  	
  42

  
	
  2.4

  	
   

  	
  Disbursement of Funds

  	
   

  	
  44

  
	
  2.5

  	
   

  	
  Repayment of Loans; Evidence of Debt

  	
   

  	
  45

  
	
  2.6

  	
   

  	
  Conversions and Continuations

  	
   

  	
  46

  
	
  2.7

  	
   

  	
  Pro Rata Borrowings

  	
   

  	
  47

  
	
  2.8

  	
   

  	
  Interest

  	
   

  	
  48

  
	
  2.9

  	
   

  	
  Interest Periods

  	
   

  	
  48

  
	
  2.10

  	
   

  	
  Increased Costs, Illegality, etc.

  	
   

  	
  49

  
	
  2.11

  	
   

  	
  Compensation

  	
   

  	
  51

  
	
  2.12

  	
   

  	
  Change of Lending Office

  	
   

  	
  51

  
	
  2.13

  	
   

  	
  Notice of Certain Costs

  	
   

  	
  52

  
	
  2.14

  	
   

  	
  Incremental Facilities

  	
   

  	
  52

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section
  3.

  	
   

  	
  Letters of Credit

  	
   

  	
  54

  
	
  3.1

  	
   

  	
  Issuance of Letters of Credit

  	
   

  	
  54

  
	
  3.2

  	
   

  	
  Letter of Credit Requests

  	
   

  	
  54

  
	
  3.3

  	
   

  	
  Letter of Credit Participations

  	
   

  	
  55

  
	
  3.4

  	
   

  	
  Agreement to Repay Letter of Credit Drawings

  	
   

  	
  56

  
	
  3.5

  	
   

  	
  Increased Costs

  	
   

  	
  57

  
	
  3.6

  	
   

  	
  New or Successor Letter of Credit Issuer

  	
   

  	
  58

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section
  4.

  	
   

  	
  Fees; Commitment
  Reductions and Terminations

  	
   

  	
  59

  
	
  4.1

  	
   

  	
  Fees

  	
   

  	
  59

  
	
  4.2

  	
   

  	
  Voluntary Reduction of Commitments

  	
   

  	
  60

  
	
  4.3

  	
   

  	
  Mandatory Termination of Commitments

  	
   

  	
  60

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section
  5.

  	
   

  	
  Payments

  	
   

  	
  60

  
	
  5.1

  	
   

  	
  Voluntary Prepayments

  	
   

  	
  60

  
	
  5.2

  	
   

  	
  Mandatory Prepayments

  	
   

  	
  61

  
	
  5.3

  	
   

  	
  Method and Place of Payment

  	
   

  	
  64

  
	
  5.4

  	
   

  	
  Net Payments

  	
   

  	
  65

  
	
  5.5

  	
   

  	
  Computations of Interest and Fees

  	
   

  	
  67

  
	
  5.6

  	
   

  	
  Limit on Rate of Interest

  	
   

  	
  67

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section
  6.

  	
   

  	
  Conditions Precedent to
  Effective Date

  	
   

  	
  68

  
	
  6.1

  	
   

  	
  Credit Documents

  	
   

  	
  68

  
	
  6.2

  	
   

  	
  Collateral

  	
   

  	
  68

  

 

i

 

 

	
  6.3

  	
   

  	
  Legal Opinions

  	
   

  	
  68

  
	
  6.4

  	
   

  	
  No Defaults; Representations and Warranties

  	
   

  	
  69

  
	
  6.5

  	
   

  	
  Consent

  	
   

  	
  69

  
	
  6.6

  	
   

  	
  Effective Date Certificates

  	
   

  	
  69

  
	
  6.7

  	
   

  	
  Corporate Proceedings

  	
   

  	
  69

  
	
  6.8

  	
   

  	
  Corporate Documents

  	
   

  	
  69

  
	
  6.9

  	
   

  	
  Fees and Expenses

  	
   

  	
  70

  
	
  6.10

  	
   

  	
  Solvency Certificate

  	
   

  	
  70

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section
  7.

  	
   

  	
  Additional Conditions
  Precedent

  	
   

  	
  70

  
	
  7.1

  	
   

  	
  No Default; Representations and Warranties

  	
   

  	
  70

  
	
  7.2

  	
   

  	
  Notice of Borrowing; Letter of Credit Request

  	
   

  	
  70

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section
  8.

  	
   

  	
  Representations,
  Warranties and Agreements

  	
   

  	
  71

  
	
  8.1

  	
   

  	
  Corporate Status

  	
   

  	
  71

  
	
  8.2

  	
   

  	
  Corporate Power and Authority

  	
   

  	
  71

  
	
  8.3

  	
   

  	
  No Violation

  	
   

  	
  71

  
	
  8.4

  	
   

  	
  Litigation

  	
   

  	
  71

  
	
  8.5

  	
   

  	
  Margin Regulations

  	
   

  	
  72

  
	
  8.6

  	
   

  	
  Governmental Approvals

  	
   

  	
  72

  
	
  8.7

  	
   

  	
  Investment Company Act

  	
   

  	
  72

  
	
  8.8

  	
   

  	
  True and Complete Disclosure

  	
   

  	
  72

  
	
  8.9

  	
   

  	
  Financial Condition; Financial Statements

  	
   

  	
  72

  
	
  8.10

  	
   

  	
  Tax Returns and Payments, etc.

  	
   

  	
  72

  
	
  8.11

  	
   

  	
  Compliance with ERISA

  	
   

  	
  73

  
	
  8.12

  	
   

  	
  Subsidiaries

  	
   

  	
  73

  
	
  8.13

  	
   

  	
  Patents, etc.

  	
   

  	
  73

  
	
  8.14

  	
   

  	
  Environmental Laws

  	
   

  	
  74

  
	
  8.15

  	
   

  	
  Properties, Assets and Rights

  	
   

  	
  74

  
	
  8.16

  	
   

  	
  Certain Fees

  	
   

  	
  74

  
	
  8.17

  	
   

  	
  Solvency

  	
   

  	
  74

  
	
  8.18

  	
   

  	
  Capital Stock

  	
   

  	
  74

  
	
  8.19

  	
   

  	
  No Defaults

  	
   

  	
  74

  
	
  8.20

  	
   

  	
  Employee Matters

  	
   

  	
  75

  
	
  8.21

  	
   

  	
  Senior Indebtedness

  	
   

  	
  75

  
	
  8.22

  	
   

  	
  Patriot Act

  	
   

  	
  75

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section
  9.

  	
   

  	
  Affirmative Covenants

  	
   

  	
  75

  
	
  9.1

  	
   

  	
  Information Covenants

  	
   

  	
  75

  
	
  9.2

  	
   

  	
  Books, Records and Inspections

  	
   

  	
  78

  
	
  9.3

  	
   

  	
  Maintenance of Insurance

  	
   

  	
  79

  
	
  9.4

  	
   

  	
  Payment of Taxes

  	
   

  	
  79

  
	
  9.5

  	
   

  	
  Consolidated Corporate Franchises

  	
   

  	
  79

  
	
  9.6

  	
   

  	
  Compliance with Statutes

  	
   

  	
  79

  
	
  9.7

  	
   

  	
  ERISA

  	
   

  	
  79

  
	
  9.8

  	
   

  	
  Good Repair

  	
   

  	
  80

  
	
  9.9

  	
   

  	
  Transactions with Affiliates

  	
   

  	
  80

  

 

ii

 

 

	
  9.10

  	
   

  	
  End of Fiscal Years; Fiscal Quarters

  	
   

  	
  81

  
	
  9.11

  	
   

  	
  Additional Guarantors and Grantors

  	
   

  	
  81

  
	
  9.12

  	
   

  	
  Pledges of Additional Stock and Evidence of Indebtedness

  	
   

  	
  82

  
	
  9.13

  	
   

  	
  Changes in Business

  	
   

  	
  82

  
	
  9.14

  	
   

  	
  Further Assurances

  	
   

  	
  82

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section
  10.

  	
   

  	
  Negative Covenants

  	
   

  	
  83

  
	
  10.1

  	
   

  	
  Limitation on Indebtedness

  	
   

  	
  83

  
	
  10.2

  	
   

  	
  Limitation on Liens

  	
   

  	
  87

  
	
  10.3

  	
   

  	
  Limitation on Fundamental Changes

  	
   

  	
  89

  
	
  10.4

  	
   

  	
  Limitation on Sale of Assets

  	
   

  	
  90

  
	
  10.5

  	
   

  	
  Limitation on Investments

  	
   

  	
  92

  
	
  10.6

  	
   

  	
  Limitation on Dividends

  	
   

  	
  95

  
	
  10.7

  	
   

  	
  Limitations on Debt Payments and Amendments

  	
   

  	
  98

  
	
  10.8

  	
   

  	
  Limitations on Sale Leasebacks

  	
   

  	
  98

  
	
  10.9

  	
   

  	
  Consolidated Total Debt to Consolidated EBITDA Ratio

  	
   

  	
  98

  
	
  10.10

  	
   

  	
  Consolidated EBITDA to Consolidated Interest Expense Ratio

  	
   

  	
  99

  
	
  10.11

  	
   

  	
  [Reserved]

  	
   

  	
  100

  
	
  10.12

  	
   

  	
  Burdensome Agreements

  	
   

  	
  100

  
	
  10.13

  	
   

  	
  Permitted Activities of Holdings

  	
   

  	
  101

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section
  11.

  	
   

  	
  Events of Default

  	
   

  	
  102

  
	
  11.1

  	
   

  	
  Payments

  	
   

  	
  102

  
	
  11.2

  	
   

  	
  Representations, etc.

  	
   

  	
  102

  
	
  11.3

  	
   

  	
  Covenants

  	
   

  	
  102

  
	
  11.4

  	
   

  	
  Default Under Other Agreements

  	
   

  	
  102

  
	
  11.5

  	
   

  	
  Bankruptcy, etc.

  	
   

  	
  102

  
	
  11.6

  	
   

  	
  ERISA

  	
   

  	
  103

  
	
  11.7

  	
   

  	
  Guarantee

  	
   

  	
  103

  
	
  11.8

  	
   

  	
  Security Documents

  	
   

  	
  103

  
	
  11.9

  	
   

  	
  Subordination

  	
   

  	
  103

  
	
  11.10

  	
   

  	
  Judgments

  	
   

  	
  104

  
	
  11.11

  	
   

  	
  Change of Control

  	
   

  	
  104

  
	
  11.12

  	
   

  	
  Borrower’s Right to Cure

  	
   

  	
  104

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section
  12.

  	
   

  	
  The Administrative
  Agent

  	
   

  	
  105

  
	
  12.1

  	
   

  	
  Appointment

  	
   

  	
  105

  
	
  12.2

  	
   

  	
  Delegation of Duties

  	
   

  	
  105

  
	
  12.3

  	
   

  	
  Exculpatory Provisions

  	
   

  	
  105

  
	
  12.4

  	
   

  	
  Reliance by Administrative Agent

  	
   

  	
  106

  
	
  12.5

  	
   

  	
  Notice of Default

  	
   

  	
  106

  
	
  12.6

  	
   

  	
  Non-Reliance on Administrative Agent and Other Lenders

  	
   

  	
  107

  
	
  12.7

  	
   

  	
  Indemnification

  	
   

  	
  107

  
	
  12.8

  	
   

  	
  Administrative Agent in its Individual Capacity

  	
   

  	
  107

  
	
  12.9

  	
   

  	
  Successor Agent

  	
   

  	
  108

  
	
  12.10

  	
   

  	
  Withholding Tax

  	
   

  	
  108

  
	
  12.11

  	
   

  	
  Collateral Agent

  	
   

  	
  108

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

iii

 

 

	
  Section 13.

  	
   

  	
  Miscellaneous

  	
   

  	
  108

  
	
  13.1

  	
   

  	
  Amendments and Waivers

  	
   

  	
  108

  
	
  13.2

  	
   

  	
  Notices

  	
   

  	
  110

  
	
  13.3

  	
   

  	
  No Waiver; Cumulative Remedies

  	
   

  	
  112

  
	
  13.4

  	
   

  	
  Survival of Representations and Warranties

  	
   

  	
  112

  
	
  13.5

  	
   

  	
  Payment of Expenses and Taxes; Indemnification

  	
   

  	
  112

  
	
  13.6

  	
   

  	
  Successors and Assigns; Participations and Assignments

  	
   

  	
  113

  
	
  13.7

  	
   

  	
  Replacements of Lenders under Certain Circumstances

  	
   

  	
  117

  
	
  13.8

  	
   

  	
  Adjustments; Set-off

  	
   

  	
  118

  
	
  13.9

  	
   

  	
  Counterparts

  	
   

  	
  118

  
	
  13.10

  	
   

  	
  Severability

  	
   

  	
  118

  
	
  13.11

  	
   

  	
  Integration

  	
   

  	
  118

  
	
  13.12

  	
   

  	
  GOVERNING LAW

  	
   

  	
  119

  
	
  13.13

  	
   

  	
  Submission to Jurisdiction; Waivers

  	
   

  	
  119

  
	
  13.14

  	
   

  	
  Acknowledgments

  	
   

  	
  119

  
	
  13.15

  	
   

  	
  WAIVERS OF JURY TRIAL

  	
   

  	
  120

  
	
  13.16

  	
   

  	
  Confidentiality

  	
   

  	
  120

  
	
  13.17

  	
   

  	
  USA PATRIOT Act

  	
   

  	
  120

  
	
  13.18

  	
   

  	
  Effect of Amendment and Restatement of the Original Credit Agreement

  	
   

  	
  120

  
	
  13.19

  	
   

  	
  Consent of Required Lenders

  	
   

  	
  121

  

 

 

iv

 

 

	
  SCHEDULES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule 1.1(a)

  	
   

  	
  Mortgaged
  Property

  
	
  Schedule
  1.1(b)

  	
   

  	
  Commitments
  and Addresses of Lenders

  
	
  Schedule 1.1(c)

  	
   

  	
  Excluded
  Subsidiaries

  
	
  Schedule
  8.6

  	
   

  	
  Government
  Approvals

  
	
  Schedule
  8.12

  	
   

  	
  Subsidiaries

  
	
  Schedule
  8.18

  	
   

  	
  Capital
  Stock

  
	
  Schedule
  9.9

  	
   

  	
  Affiliate
  Transactions

  
	
  Schedule
  10.1

  	
   

  	
  Indebtedness

  
	
  Schedule
  10.2

  	
   

  	
  Liens

  
	
  Schedule
  10.5

  	
   

  	
  Investments

  
	
  Schedule
  10.12

  	
   

  	
  Burdensome
  Agreements

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  Form of
  Assignment and Acceptance

  
	
  Exhibit B

  	
   

  	
  [Reserved]

  
	
  Exhibit C

  	
   

  	
  Form of
  Mortgage

  
	
  Exhibit D

  	
   

  	
  [Reserved]

  
	
  Exhibit E

  	
   

  	
  [Reserved]

  
	
  Exhibit F

  	
   

  	
  Form of
  Letter of Credit Request

  
	
  Exhibit G-1

  	
   

  	
  Form of
  Legal Opinion of Simpson Thacher & Bartlett LLP

  
	
  Exhibit G-2

  	
   

  	
  Form of
  Legal Opinion of Ropes & Gray LLP

  
	
  Exhibit G-3

  	
   

  	
  [Reserved]

  
	
  Exhibit G-4

  	
   

  	
  Form of
  Legal Opinion of Kirkpatrick & Lockhart Preston Gates Ellis LLP

  
	
  Exhibit G-5

  	
   

  	
  Form of
  Legal Opinion of Bingham McCutcheon LLP

  
	
  Exhibit H

  	
   

  	
  Form of
  Effective Date Certificate

  
	
  Exhibit I-1

  	
   

  	
  Form of
  Promissory Note (Tranche D Term Loans)

  
	
  Exhibit I-2

  	
   

  	
  Form of
  Promissory Note (New Term Loans)

  
	
  Exhibit I-3

  	
   

  	
  Form of
  Promissory Note (Revolving Credit and Swingline Loans)

  
	
  Exhibit J-1

  	
   

  	
  Form of
  Joinder Agreement (New Term Loans)

  
	
  Exhibit J-2

  	
   

  	
  Form of
  Joinder Agreement (Revolving Credit Increase)

  

 

 

v

 

SECOND AMENDED AND RESTATED CREDIT AGREEMENT, dated as of June 18,
2007, among LPL INVESTMENT HOLDINGS INC., a
Delaware corporation (“Holdings”), LPL HOLDINGS, INC.,
a Massachusetts corporation (the “Borrower”), the lending institutions
from time to time parties hereto (each a “Lender” and, collectively, the
“Lenders”), GOLDMAN SACHS CREDIT
PARTNERS L.P. (“GSCP”), as Sole Lead Arranger and Sole
Bookrunner, and Syndication Agent, MORGAN STANLEY SENIOR
FUNDING, INC. (“MSSF”), as Administrative Agent, and MORGAN STANLEY & CO. (“MS”), as Collateral
Agent.

 

RECITALS:

 

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

 

WHEREAS, Holdings, the Borrower, the lending institutions
party thereto (the “Original Lenders”), GSCP, as sole lead arranger,
sole bookrunner and syndication agent, MSSF, as administrative agent, and MS,
as collateral agent, are parties to that certain Amended and Restated Credit Agreement,
dated as of December 29, 2006 (as heretofore amended, supplemented or
otherwise modified from time to time, the “Original Credit Agreement”),
pursuant to which the Original Lenders extended or committed to extend certain
credit facilities to the Borrower;

 

WHEREAS, the Obligations
(as defined in the Original Credit Agreement, hereinafter the “Original
Obligations”) of the Borrower and the other Credit Parties under the
Original Credit Agreement and the other Credit Documents (as defined in the
Original Credit Agreement, hereinafter the “Original Credit Documents”)
are secured by the Collateral (as defined in the Original Credit Agreement,
hereinafter the “Original Collateral”) and are guaranteed or supported
or otherwise benefited by the Original Credit Documents;

 

WHEREAS, immediately
prior to the Effective Date, Tranche C Term Loans (as defined in the Original
Credit Agreement) in the aggregate principal amount of $792,389,062.50 were
outstanding under the Original Credit Agreement (the “Original Term Loans”);
and

 

WHEREAS, the Borrower
desires to amend and restate the Original Credit Agreement in its entirety to,
among other things, provide for (a) new senior secured term loans to the
Borrower in an aggregate principal amount of $842,389,062.50, which shall be
used to repay in full the Original Term Loans, any accrued but unpaid interest
thereon and any other amounts owing under the Original Credit Agreement in
respect of the Original Term Loans, and pay fees and expenses in connection
herewith and therewith (the “Refinancing”) and to pay a portion of the
consideration for the Pacific Life Acquisition and (b) certain other
amendments to the Original Credit Agreement to be made; and

 

WHEREAS, the Borrower has requested that the Original Lenders
amend and restate the Original Credit Agreement, in its entirety, and that the
Lenders make available the Tranche D Term Loans and other extensions of credit
to the Borrower, in each case, as set forth in this Agreement; and

 

 

WHEREAS, the parties hereto intend that (a) the Original
Obligations which remain unpaid and outstanding as of the Effective Date shall
continue to exist under this Agreement on the terms set forth herein and (b) the
Original Collateral shall continue to secure, support and otherwise benefit the
Original Obligations as well as the other Obligations of the Credit Parties
under this Agreement and the other Credit Documents hereunder; and

 

WHEREAS, the Lenders are willing to provide the Tranche D
Term Loans and other extensions of credit, and the Original Lenders are willing
to amend and restate the Original Credit Agreement, in each case, subject to
the terms and conditions of this Agreement.

 

AGREEMENT:

 

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

 

SECTION 1.           Definitions

 

1.1                                 Defined
Terms.  (a)  As used herein, the
following terms shall have the meanings specified in this Section 1.1
unless the context otherwise requires (it being understood that defined terms
in this Agreement shall include in the singular number the plural and in the
plural the singular):

 

“2005 Credit Agreement” shall mean that
certain Credit Agreement, dated as of the Closing Date, among Holdings, the
Borrower, the several lenders from time to time parties thereto, Goldman Sachs
Credit Partners L.P., as joint lead arranger, joint bookrunner and syndication
agent, Morgan Stanley Senior Funding, Inc., as joint lead arranger, joint
bookrunner and administrative agent, Morgan Stanley & Co., as
collateral agent, and Bear Stearns Corporate Lending Inc., as documentation
agent.

 

 “ABR”
shall mean, for any day, a rate per annum (rounded upwards, if necessary, to
the next 1/16 of 1%) equal to the greater of (a) the Prime Rate in effect
on such day and (b) the Federal Funds Effective Rate in effect on such day
plus 1⁄2 of 1%.  Any change in the ABR due
to a change in the Prime Rate or the Federal Funds Effective Rate shall be
effective as of the opening of business on the effective day of such change in
the Prime Rate or the Federal Funds Effective Rate, respectively.

 

“ABR Loan” shall mean each Loan bearing
interest at the rate provided in Section 2.8 and, in any event, shall
include all Swingline Loans.

 

“Acceptable Reinvestment Commitment” shall
mean a binding commitment of the Borrower or any Restricted Subsidiary to
reinvest proceeds of an Asset Sale Prepayment Event, Permitted Sale Leaseback
or Recovery Prepayment Event entered into at any time prior to the date that is
15 months after the receipt of the Net Cash Proceeds of such Asset Sale
Prepayment Event, Permitted Sale Leaseback or Recovery Prepayment Event.

 

“Acquired EBITDA” shall mean, with respect to
any Acquired Entity or Business, any Converted Restricted Subsidiary, any Sold
Entity or Business or any Converted Unrestricted Subsidiary (any of the
foregoing, a “Pro Forma Entity”) for any period, the amount for such 

 

2

 

 

period of Consolidated
EBITDA of such Pro Forma Entity (determined using such definitions as if
references to the Borrower and its Subsidiaries therein were to such Pro Forma
Entity and its Subsidiaries), all as determined on a consolidated basis for
such Pro Forma Entity in accordance with GAAP.

 

“Acquired Entity or Business” shall have the
meaning provided in the definition of the term “Consolidated EBITDA”.

 

“Adjusted Total New Term Loan Commitment”
shall mean, at any time with respect to New Term Loans of any Series, the Total
New Term Loan Commitment for such Series less the aggregate New
Term Loan Commitments for such Series of all Defaulting Lenders.

 

“Adjusted Total Revolving Credit Commitment”
shall mean, at any time, the Total Revolving Credit Commitment less the
aggregate Revolving Credit Commitments of all Defaulting Lenders.

 

 “Administrative
Agent” shall mean MS, together with its affiliates and permitted successors
in such capacity, as the administrative agent for the Lenders under this
Agreement and the other Credit Documents.

 

“Administrative Agent’s Office” shall mean
the office of the Administrative Agent located at 1585 Broadway, New York, New
York 10036, or such other office as the Administrative Agent may hereafter
designate in writing as such to the other parties hereto.

 

“Affiliate” shall mean, with respect to any
Person, any other Person directly or indirectly controlling, controlled by, or
under direct or indirect common control with such Person.  A Person shall be deemed to control a
corporation if such Person possesses, directly or indirectly, the power (a) to
vote 10% or more of the securities having ordinary voting power for the
election of directors of such corporation or (b) to direct or cause the
direction of the management and policies of such corporation, whether through
the ownership of voting securities, by contract or otherwise.

 

“Agents” shall mean the Arranger, the
Administrative Agent, the Collateral Agent, and the Syndication Agent.

 

“Aggregate Customer Debits” shall have the meaning set forth in Rule 15c3-3
of the Exchange Act.

 

“Agreement” shall mean this Second Amended
and Restated Credit Agreement, as the same may be amended, supplemented or
otherwise modified from time to time in accordance with the terms hereof and of
the other Credit Documents.

 

“Applicable ABR Margin” shall mean, at any
date, (a) with respect to the Tranche D Term Loans, (i) during any
period in which the Borrower’s corporate family rating by Moody’s is B2 or
less, 1.25% per annum, (ii) during any period in which the Borrower’s
corporate family rating by Moody’s is Ba3 or better, 0.75% per annum, and (iii) during
all other periods, 1.00% per annum, and (b) with respect to Revolving
Credit Loans, Swingline Loans and 

 

3

 

Letters of Credit, 1.00% per
annum. Changes in the Applicable ABR Margin resulting from changes in ratings
from Moody’s shall become effective on the date such rating shall have changed.

 

“Applicable Eurodollar Margin” shall mean, at
any date, (a) with respect to the Tranche D Term Loans, (i) during
any period in which the Borrower’s corporate family rating by Moody’s is B2 or
less, 2.25% per annum, (ii) during any period in which the Borrower’s
corporate family rating by Moody’s is Ba3 or better, 1.75% per annum, and (iii) during
all other periods, 2.00% per annum, and (b) with respect to Revolving
Credit Loans and Letters of Credit, 2.00% per annum.  Changes in the Applicable Eurodollar Margin
resulting from changes in ratings from Moody’s shall become effective on the
date such rating shall have changed.

 

“Applicable Laws” shall mean, as to any
Person, any law, rule, regulation, ordinance or treaty, or any determination,
ruling or other directive by or from a court, arbitrator, self-regulatory body
or other Governmental Authority, in each case applicable to or binding on such
Person or any of its property or assets or to which such Person or any of its
property or assets is subject.

 

“Applicable Margin” shall mean the Applicable
ABR Margin or the Applicable Eurodollar Margin, as applicable.

 

“Approved Fund” shall have the meaning
provided in Section 13.6(b).

 

“Arranger” shall mean GSCP, together with its
affiliates, as sole lead arranger and sole bookrunners for the Tranche D Term
Loan Facility.

 

“Asset Sale Prepayment Event” shall mean any sale,
transfer or other disposition (or series of related sales, transfers or
dispositions) of any business unit, asset or property of the Borrower or any
Restricted Subsidiary (including any sale, transfer or other disposition of any
Capital Stock of any Subsidiary of the Borrower owned by the Borrower or any
Restricted Subsidiary); provided, that the term “Asset Sale Prepayment
Event” shall not include (a) any Recovery Event or Permitted Sale
Leaseback or (b) any sale, transfer or other disposition permitted under
clauses (a), (b), (d)(i), (e), (f) and (h) of Section 10.4.

 

“Assignment and Acceptance” shall mean an
assignment and acceptance substantially in the form of Exhibit A.

 

“Authorized Officer” shall mean the Chairman
of the Board, the President, the Chief Financial Officer, the Treasurer or any
other senior officer of the Borrower designated as such in writing to the
Administrative Agent by the Borrower.

 

“Available Amount” shall mean, on any date
(the “Reference Date”), an amount equal at such time to (a) the sum
of, without duplication:

 

(i)            an amount (which
amount shall not be less than zero) equal to (x) the cumulative amount of
Excess Cash Flow for all full fiscal years completed after the Closing Date
(commencing with the fiscal year ending December 31, 2006) and prior to
the Reference Date minus (y) the portion of such Excess Cash Flow that has
been after 

 

4

 

the Closing Date and on or prior to the Reference Date (or will be)
applied to the prepayment of Loans in accordance with Section 5.2(a)(ii);

 

(ii)           the amount of any
capital contributions or other equity issuances (other than the Equity
Contributions, issuances of Permitted Cure Securities or any other capital
contribution or equity issuance to the extent utilized in connection with other
transactions permitted pursuant to Section 10.5 or 10.6) made or received
by Holdings or the Borrower during the period from and including the Business
Day immediately following the Closing Date through and including the Reference
Date;

 

(iii)          to the extent not
already included in the calculation of Consolidated Net Income, the aggregate
amount of all cash dividends and other cash distributions received by Holdings,
the Borrower or any Restricted Subsidiary from any Minority Investments or
Unrestricted Subsidiaries after the Closing Date and on or prior to the
Reference Date (other than the portion of any such dividends and other
distributions that is used by Holdings, the Borrower or any Guarantor to pay
taxes); and

 

(iv)          to the extent not
already included in the calculation of Consolidated Net Income, the aggregate
amount of all cash repayments of principal received by Holdings, the Borrower
or any Restricted Subsidiary from any Minority Investments or Unrestricted
Subsidiaries after the Closing Date and on or prior to the Reference Date in
respect of loans made by Holdings, the Borrower or any Restricted Subsidiary to
such Minority Investments or Unrestricted Subsidiaries;

 

minus (b) the sum of:

 

(i)            the aggregate
amount of any Investments made by Holdings, the Borrower or any Restricted
Subsidiary pursuant to Section 10.5(j)(ii), 10.5(t)(ii), 10.5(u)(ii) or
10.5(aa)(y) after the Closing Date and on or prior to the Reference Date;
and

 

(ii)           the aggregate
amount of prepayments, repurchases and redemptions made by Holdings, the
Borrower or any Restricted Subsidiary pursuant to clause (i)(y) of the
proviso to Section 10.7(a) and clause (i)(y) of the proviso
to Section 10.7(b) after the Closing Date and on or prior to the
Reference Date.

 

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

 

“Borrower” shall have the meaning provided in
the preamble to this Agreement.

 

“Borrowing” shall mean and include (a) the
incurrence of Swingline Loans from the Swingline Lender on a given date, (b) the
incurrence of one Type of Tranche D Term Loan on the Effective Date (or
resulting from conversions on a given date after the Effective Date) having, in
the case of Eurodollar Term Loans, the same Interest Period (provided that ABR
Loans incurred pursuant to Section 2.10(b) shall be considered part
of any related Borrowing of Eurodollar Term Loans), (c) the incurrence of
one Type of New Term Loan on the applicable Increased Amount Date (or resulting
from conversions on a given date after the applicable Increased Amount Date)
having, in the case of Eurodollar Term Loans, the same Interest Period

 

5

 

(provided that ABR Loans
incurred pursuant to Section 2.10(b) shall be considered part of any
related Borrowing of Eurodollar Term Loans) and (d) the incurrence of one
Type of Revolving Credit Loan on a given date (or resulting from conversions on
a given date) having, in the case of Eurodollar Revolving Credit Loans, the
same Interest Period (provided that ABR Loans incurred pursuant to Section 2.10(b) shall
be considered part of any related Borrowing of Eurodollar Revolving Credit
Loans).

 

“Broker-Dealer Capital Requirement” shall mean the sum of (a) the
Clearing Broker-Dealer Minimum Capital, and (b) the Introducing
Broker-Dealer Minimum Capital.

 

“Broker-Dealer Regulated Subsidiary” shall mean any Subsidiary of
the Borrower, without respect to SEC Rule 15c(3)-3, that is registered as
a broker-dealer under the Exchange Act or any other Applicable Law requiring
such registration.

 

“Broker-Dealer Required Cash” shall mean, as of any date of
determination, the greater of (a) the difference of (i) all cash
and cash equivalents (including Segregated Cash) on the balance sheet
of the Broker-Dealer Regulated Subsidiary as of such date less (ii) all
Indebtedness on the balance sheet of the Broker-Dealer Regulated Subsidiary as
of such date, other than (A) Indebtedness under Margin Lines of Credit and
(B) other Indebtedness that has been approved as regulatory capital for
computation of Net Capital (as defined in Rule 15c3-1 of the Exchange
Act) less (iii) the Broker-Dealer Surplus Capital of the
Broker-Dealer Regulated Subsidiary as of such date and (b) the sum of
Calculated Segregated Cash and the Introducing Broker-Dealer Minimum Capital as
of such date.

 

“Broker-Dealer Surplus Capital” shall mean, as of any date of
determination, the difference of (a) the Net Capital (as defined in Rule 15c3-1
of the Exchange Act) of the Broker-Dealer Regulated Subsidiary as of such date
and (b) the Broker-Dealer Capital Requirement as of such date.

 

“Business Day” shall mean any day excluding
Saturday, Sunday and any day that shall be in The City of New York or San
Diego, California a legal holiday or a day on which banking institutions are
authorized by law or other governmental actions to close.

 

“Calculated Segregated Cash” shall mean, as of any date of
determination, all cash and “qualified” cash equivalents required to be
segregated as calculated as of such date under Rule 15c3-3 of the Exchange
Act.

 

“Capital Expenditures” shall mean, for any
period, the aggregate of all expenditures (whether paid in cash or accrued as
liabilities and including in all events all amounts expended or capitalized
under Capital Leases, but excluding any amount representing capitalized
interest) by the Borrower and the Restricted Subsidiaries during such period
that, in conformity with GAAP, are or are required to be included as additions
during such period to property, plant or equipment reflected in the
consolidated balance sheet of the Borrower and its Subsidiaries; provided,
that the term “Capital Expenditures” shall not include (a) expenditures
made in connection with the replacement, substitution, restoration or repair of
assets to the extent financed from insurance proceeds or compensation awards
paid on account of a Recovery Event, (b) the purchase price of equipment
that is purchased simultaneously with the trade-in of existing

 

6

 

equipment to the extent that
the gross amount of such purchase price is reduced by the credit granted by the
seller of such equipment for the equipment being traded in at such time, (c) the
purchase of plant, property or equipment made within two years of the sale of
any asset to the extent purchased with the proceeds of such sale, (d) expenditures
that constitute any part of Consolidated Lease Expense or (e) any
expenditures deemed to be made as part of a Permitted Acquisition.

 

“Capital Lease” shall mean, as applied to any
Person, any lease of any property (whether real, personal or mixed) by that
Person as lessee that, in conformity with GAAP, is or is required to be
accounted for as a capital lease on the balance sheet of that Person.

 

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

 

“Capitalized Lease Obligations” shall mean,
as applied to any Person, all obligations under Capital Leases of such Person
or any of its Subsidiaries, in each case taken at the amount thereof accounted
for as liabilities in accordance with GAAP.

 

“Change of Control” shall mean and be deemed
to have occurred if (a) at any time prior to the consummation of an IPO,
the Permitted Investors fail to own at least 50% of the Voting Stock of
Holdings; (b) at any time after the consummation of an IPO, a “person” or “group”
(as such terms are used in Sections 13(d) and 14(d) of the Exchange
Act, but excluding any employee benefit plan of such Person and its
Subsidiaries, and any Person acting in its capacity as trustee, agent or other
fiduciary or administrator of any such plan), excluding the Permitted
Investors, shall become the “beneficial owner” (as defined in Rules 13(d)-3
and 13(d)-5 under such Act), directly or indirectly, of 35% or more of the
Voting Stock of Holdings, unless the Permitted Investors own Voting Stock of
Holdings representing a greater percentage; (c) Holdings shall cease to
beneficially own and control 100% of the Voting Stock of the Borrower; (d) the
Borrower shall cease to beneficially own and control at least 100% of the
Voting Stock of Linsco/Private Ledger Corp.; (e) the board of directors of
Holdings shall cease to consist of a majority of Continuing Directors; or (f) any
“change of control” (as defined in the Senior Unsecured Subordinated Note
Indenture) shall occur.

 

“Class”, when used in reference to any Loan
or Borrowing, refers to whether such Loan, or the Loans comprising such
Borrowing, are Revolving Credit Loans, Tranche D Term Loans, New Term Loans or
Swingline Loans and, when used in reference to any Commitment, refers to
whether such Commitment is a Tranche D Term Loan Commitment, a New Term Loan
Commitment, a Revolving Credit Commitment or a Swingline Commitment.

 

“Clearing Broker-Dealer Minimum Capital” shall mean, for any
Subsidiary of the Borrower that is a broker-dealer subject to SEC Rule 15c(3)-3,
as of any date of determination, the greater of (a) $40,000,000 and (b) 15%
of Aggregate Customer Debits on such date.

 

“Closing Date” shall mean December 28,
2005, the date of the initial credit event under the 2005 Credit Agreement.

 

7

 

 

“Closing Date Indebtedness” shall mean
Indebtedness described on Schedule 10.1.

 

 “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 have the meaning provided
in the Security Agreement, the Pledge Agreement or any Mortgage, as applicable.

 

“Collateral Agent” shall mean Morgan Stanley &
Co., together with its affiliates and permitted successors in such capacity, as
the collateral agent for the Secured Parties.

 

“Commitment” shall mean, with respect to each
Lender, such Lender’s Tranche D Term Loan Commitment, New Term Loan Commitment,
Revolving Credit Commitment, or Swingline Commitment.

 

“Confidential Information” shall have the
meaning provided in Section 13.16.

 

“Confidential Information Memorandum” shall
mean the Confidential Information Memorandum of the Borrower dated December 2005,
delivered to the Lenders in connection with this Agreement.

 

“Consolidated Earnings” shall mean, for any
period, “income (loss) before the deduction of income and franchise taxes” of
the Borrower and the Restricted Subsidiaries, excluding (a) extraordinary
items for such period, determined in a manner consistent with the manner in
which such amount was determined in accordance with the audited financial
statements referred to in Section 9.1(a) and (b) the cumulative
effect of a change in accounting principles or policies during such period,
whether effected through a cumulative effect adjustment or a retroactive
application, in each case in accordance with GAAP.

 

“Consolidated EBITDA” shall mean, for any
period:

 

(a) the sum, without duplication, of the
amounts for such period of (x) Consolidated Earnings and (y) to the
extent already deducted in arriving at Consolidated Earnings:

 

(i)            Consolidated
Interest Expense;

 

(ii)           depreciation
expense;

 

(iii)          amortization
expense, including the amortization of deferred financing fees;

 

(iv)          extraordinary losses
and unusual or non-recurring charges, severance, relocation costs and
curtailment or modification to pension and post-retirement employee benefit
plans (including any writeoffs, writedowns or other non-cash charges reducing

 

8

 

Consolidated Earnings for such period, but excluding any such charge
that represents an accrual or reserve for a cash expenditure for a future
period or amortization of a prepaid cash item that was paid in a prior period);

 

(v)           losses on asset
sales;

 

(vi)          restructuring
charges, accruals or reserves (excluding any non-cash item to the extent that
it represents an accrual or reserve for potential cash items in any future
period or amortization of a prepaid cash item that was paid in a prior period),
including any one-time costs incurred in connection with acquisitions after the
Closing Date;

 

(vii)         [Reserved];

 

(viii)        any expenses or
charges (including any commissions, discounts and other fees or charges) incurred
in connection with any issuance of debt or equity securities, any refinancing
transaction or any amendment or other modification of any debt instrument
(whether or not successful);

 

(ix)           any fees and
expenses related to Permitted Acquisitions, dispositions, recapitalizations,
Investments or asset sales;

 

(x)            any deduction for
minority interest expense;

 

(xi)           the amount of
management, monitoring, consulting and advisory fees and related expenses paid
to the Sponsors (including any amortization thereof), to the extent permitted
by Section 10.6(d);

 

(xii)          any impairment
charge or asset write-off pursuant to Financial Accounting Standards Board
Statement No. 142-”Goodwill and Other Intangible Assets” or Financial
Accounting Standards Board Statement No. 144-”Accounting for the
Impairment or Disposal of Long-Lived Assets” and the amortization of
intangibles arising pursuant to Financial Accounting Standards Board Statement No. 141-”Business
Combinations”;

 

(xiii)         any costs or
expenses incurred by Holding, the Borrower or a Restricted Subsidiary pursuant
to any management equity plan or stock option plan or any other management or
employee benefit plan or agreement or any stock subscription or shareholder
agreement, to the extent that such costs or expenses are funded with cash
proceeds contributed to the capital of Holdings or the Borrower or net cash
proceeds of an issuance of Capital Stock of Holdings or the Borrower;

 

(xiv)        any losses from the
early extinguishment of Indebtedness or Hedging Agreements or other derivative
instruments; and

 

(xv)         any non-cash
compensation expense recorded from grants of stock appreciation or similar
rights, stock options, restricted stock or other rights to officers, directors
or employees;

 

less (b) the sum of the
amounts for such period of:

 

9

 

(i)            extraordinary
gains;

 

(ii)           non-cash gains
(excluding any such non-cash gain to the extent it represents the reversal of
an accrual or reserve for potential cash item in any prior period) increasing
Consolidated Earnings for such period, other than the accrual of revenues in
the ordinary course of business;

 

(iii)          any gains from the
early extinguishment of Indebtedness or Hedging Agreements or other derivative
instruments; and

 

(iv)          gains on asset
sales;

 

all as determined on a
consolidated basis for the Borrower and the Restricted Subsidiaries in
accordance with GAAP; provided, that (A) except as provided in
clause (C) below, there shall be excluded from Consolidated Earnings
for any period the income from continuing operations before income and
franchise taxes and extraordinary items of all Unrestricted Subsidiaries for
such period to the extent otherwise included in Consolidated Earnings, except
to the extent actually received in cash by the Borrower or the Restricted
Subsidiaries during such period through dividends or other distributions, (B) there
shall be excluded in determining Consolidated EBITDA non-operating currency transaction gains and losses and (C) (x) there
shall be included in determining Consolidated EBITDA for any period (1) the
Acquired EBITDA of any Person, property, business or asset (other than an
Unrestricted Subsidiary) acquired to the extent not subsequently sold,
transferred or otherwise disposed of (but not including the Acquired EBITDA of
any related Person, property, business or assets to the extent not so acquired)
by the Borrower or any Restricted Subsidiary during such period (each such
Person, property, business or asset acquired, including pursuant to the UVEST
Acquisition and the Pacific Life Acquisition, and not subsequently so disposed
of, an “Acquired Entity or Business”), and the Acquired EBITDA of any
Unrestricted Subsidiary that is converted into a Restricted Subsidiary during
such period (each, a “Converted Restricted Subsidiary”), in each case
based on the actual Acquired EBITDA of such Acquired Entity or Business or
Converted Restricted Subsidiary for such period (including the portion thereof
occurring prior to such acquisition or conversion) and (2) for the
purposes of the definition of the term “Permitted Acquisition” and
Sections 10.1(j), 10.1(k), 10.3, 10.9 and 10.10, an adjustment in respect
of each Acquired Entity or Business equal to the amount of the Pro Forma
Adjustment with respect to such Acquired Entity or Business for such period
(including the portion thereof occurring prior to such acquisition or
conversion) as specified in the Pro Forma Adjustment Certificate delivered to
the Administrative Agent and (y) for purposes of determining the
Consolidated Total Debt to Consolidated EBITDA Ratio only, there shall be
excluded in determining Consolidated EBITDA for any period the Acquired EBITDA
of any Person, property, business or asset (other than an Unrestricted
Subsidiary) sold, transferred or otherwise disposed of by the Borrower or any
Restricted Subsidiary during such period (each such Person, property, business
or asset so sold, transferred or otherwise disposed of, a “Sold Entity or
Business”), and the Acquired EBITDA of any Restricted Subsidiary that is
converted into an Unrestricted Subsidiary during such period (each, a “Converted
Unrestricted Subsidiary”), in each case based on the actual Acquired EBITDA
of such Sold Entity or Business or Converted Unrestricted Subsidiary for such
period (including the portion thereof occurring prior to such sale, transfer,
disposition or conversion).

 

10

 

 

“Consolidated EBITDA Growth Factor” shall
mean, as of any date of determination, a fraction, (a) the numerator of
which is the difference (only if positive) between the Consolidated EBITDA of
the Borrower and its Restricted Subsidiaries (i) for the last Test Period
prior to such determination date for which Section 9.1 Financials have
been delivered pursuant to Section 9.1, and (ii) for the fiscal year
of the Borrower ending December 31, 2005, and (b) the denominator of
which is $188,917,000.

 

“Consolidated EBITDA to Consolidated Interest
Expense Ratio” shall mean, as of any date of determination, the ratio of (a) Consolidated
EBITDA for the relevant Test Period to (b) Consolidated Interest Expense
for such Test Period.

 

“Consolidated Interest Expense” shall mean,
for any period, the cash interest expense (including that attributable to
Capital Leases in accordance with GAAP), net of cash interest income to the
extent not included in the calculation of Consolidated EBITDA, of the Borrower
and the Restricted Subsidiaries on a consolidated basis with respect to all
outstanding Indebtedness of the Borrower and the Restricted Subsidiaries,
including all commissions, discounts and other fees and charges owed with
respect to letters of credit and bankers’ acceptance financing and net costs
under Interest Rate Hedging Agreements, but excluding, however, amortization of
deferred financing costs and any other amounts of non-cash interest, all as
calculated on a consolidated basis in accordance with GAAP, and excluding, for
the avoidance of doubt, any interest in respect of items excluded from
Indebtedness in the proviso to the definition thereof, any non-cash interest
expense attributable to the movement in the mark-to-market valuation of Hedging
Obligations or other derivative instruments pursuant to Financial Accounting
Standards Board Statement No. 133, any one-time cash costs associated with
breakage costs in respect of Interest Rate Hedging Agreements and any interest
expense in respect of Indebtedness outstanding under any Margin Lines of Credit
or Warehouse Lines of Credit; provided, that (a) except as provided
in clause (b) below, there shall be excluded from Consolidated
Interest Expense for any period the cash interest expense (or income) of all
Unrestricted Subsidiaries for such period to the extent otherwise included in
Consolidated Interest Expense, (b) for purposes of the definition of the
term “Permitted Acquisition” and Sections 10.1(j), 10.1(k), 10.3, 10.9 and
10.10, there shall be included in determining Consolidated Interest Expense for
any period the cash interest expense (or income) of any Acquired Entity or
Business acquired during such period and of any Converted Restricted Subsidiary
converted during such period, in each case based on the cash interest expense
(or income) relating to any Indebtedness incurred or assumed as part of an
acquisition of an Acquired Entity or Business or as part of the conversion of a
Converted Restricted Subsidiary for such period (including the portion thereof
occurring prior to such acquisition or conversion) assuming any Indebtedness
incurred or repaid in connection with any such acquisition or conversion had
been incurred or repaid on the first day of such period and (c) for
purposes of the definition of the term “Permitted Acquisition” and Sections
10.1(j), 10.1(k), 10.3, 10.9 and 10.10, there shall be excluded from
determining Consolidated Interest Expense for any period the cash interest
expense (or income) of any Sold Entity or Business disposed of during such
period and of any Converted Unrestricted Subsidiary converted during such
period, in each case, based on the cash interest expense (or income) relating
to any Indebtedness relieved or repaid in connection with any such disposition
of such Sold Entity or Business or as part of the conversion of a Converted
Unrestricted Subsidiary for such period (including the portion thereof
occurring

 

11

 

prior to such disposal or
conversion) assuming such debt relieved or repaid in connection with such
disposition or conversion had been relieved or repaid on the first day of such
period.

 

“Consolidated Lease Expense” shall mean, for
any period, all rental expenses of the Borrower and the Restricted Subsidiaries
during such period under operating leases for real or personal property
(including in connection with Permitted Sale Leasebacks), excluding real estate
taxes, insurance costs and common area maintenance charges and net of sublease
income, other than (a) obligations under vehicle leases entered into in
the ordinary course of business, (b) all such rental expenses associated
with assets acquired pursuant to a Permitted Acquisition to the extent that
such rental expenses relate to operating leases in effect at the time of (and
immediately prior to) such acquisition and (c) Capitalized Lease
Obligations, all as determined on a consolidated basis in accordance with GAAP;
provided, that there shall be excluded from Consolidated Lease Expense
for any period the rental expenses of all Unrestricted Subsidiaries for such
period to the extent otherwise included in Consolidated Lease Expense.

 

“Consolidated Net Income” shall mean, for any
period, the consolidated net income (or loss) after the deduction of income
taxes of the Borrower and the Restricted Subsidiaries, determined on a
consolidated basis in accordance with GAAP.

 

“Consolidated Total Assets” shall mean, as of
any date of determination, the total amount of all assets of the Borrower and
the Restricted Subsidiaries, determined on a consolidated basis in accordance
with GAAP as of such date.

 

“Consolidated Total Debt” shall mean, as of
any date of determination, (a) the sum of (i) all indebtedness of the
Borrower and the Restricted Subsidiaries for borrowed money outstanding on such
date and (ii) all Capitalized Lease Obligations of the Borrower and the
Restricted Subsidiaries outstanding on such date, all calculated on a
consolidated basis in accordance with GAAP minus (b) the sum of (i) the aggregate
amount of cash and cash equivalents included in the cash accounts listed on the
consolidated balance sheet of the Borrower and the Restricted Subsidiaries
as at such date plus (ii) all Segregated Cash as at such date, to the
extent that such sum exceeds the amount of Required Cash and to the extent the
use thereof for application to the payment of Indebtedness is not otherwise
prohibited by law or any contract to which the Borrower or any of the
Restricted Subsidiaries is a party minus (c) all
Indebtedness of the Borrower and the Restricted Subsidiaries outstanding under
any Margin Lines of Credit or Warehouse Lines of Credit on such date.

 

“Consolidated Total Debt to Consolidated EBITDA
Ratio” shall mean, as of any date of determination, the ratio of (a) Consolidated
Total Debt as of the last day of the relevant Test Period to (b) Consolidated
EBITDA for such Test Period.

 

“Consolidated Total Net Tangible Assets”
shall mean, as of any date of determination, the total amount of (i) all
Consolidated Total Assets of the Borrower and the Restricted Subsidiaries less (ii) the
stated balance sheet “goodwill” of the Borrower and the Restricted Subsidiaries
and less (iii) the stated balance sheet “intangible assets” of the
Borrower and the Restricted Subsidiaries, in each case determined on a consolidated
basis in accordance with GAAP as of such date.

 

12

 

“Continuing Lender” shall mean each Original
Lender that has delivered a Lender Consent Letter agreeing to convert all or a
portion of the Original Term Loans made by such Lender to Tranche D Term Loans.

 

“Continuing Manager” shall mean, at any date,
an individual (a) who is a member of the Board of Directors of Holdings on
the Closing Date, (b) who, as at such date, has been a member of such Board
of Directors of Holdings for at least the 12 preceding months, (c) who has
been nominated to be a member of such Board of Directors of Holdings, directly
or indirectly, by one or more Permitted Investors or Persons nominated by one
or more Permitted Investors or (d) who has been nominated to be a member
of such Board of Directors of Holdings by a majority of the other Continuing
Managers then in office.

 

“Contract Consideration” shall have the
meaning provided in the definition of “Excess Cash Flow”.

 

“Converted Restricted Subsidiary” shall have
the meaning provided in the definition of the term “Consolidated EBITDA”.

 

“Converted Unrestricted Subsidiary” shall
have the meaning provided in the definition of the term “Consolidated EBITDA”.

 

“Credit Documents” shall mean this Agreement,
the Guarantee, the Security Documents, the Engagement Letter, the Second
Restatement Engagement Letter and each Letter of Credit and any promissory
notes issued by the Borrower hereunder.

 

“Credit Event” shall mean and include the
making (but not the conversion or continuation) of a Loan and the issuance of a
Letter of Credit.

 

“Credit Facility” shall mean any of the
Tranche D Term Loan Facility, any New Term Loan Facility or the Revolving
Credit Facility, as applicable.

 

“Credit Party” shall mean each of the
Borrower, Holdings, the other Guarantors and each other Subsidiary of the
Borrower that is a party to a Credit Document.

 

“Cumulative Consolidated Net Income Available to
Stockholders” shall mean, as of any date of determination, (i) Consolidated
Net Income plus (ii) any impairment charge or asset write-off pursuant to
Financial Accounting Standards Board Statement No. 142-”Goodwill and Other
Intangible Assets” or Financial Accounting Standards Board Statement No. 144-”Accounting
for the Impairment or Disposal of Long-Lived Assets” and the amortization of
intangibles arising pursuant to Financial Accounting Standards Board Statement No. 141-”Business
Combinations” less (iii) cash dividends paid or distributions made by
Holdings with respect to its Capital Stock for the period (taken as one
accounting period) commencing on the Closing Date and ending on the last day of
the most recent fiscal quarter for which Section 9.1 Financials have been
delivered under Section 9.1.

 

“Cure Amount” shall have the meaning provided
in Section 11.14(a).

 

“Cure Right” shall have the meaning provided
in Section 11.14(a).

 

13

 

 

“Currency Hedging Agreement” shall mean any
swap, cap, collar, forward future, option or similar agreement or derivative
transaction entered into by the Borrower or any Restricted Subsidiary in the
ordinary course of business and not for speculative purposes in order to
protect the Borrower or such Restricted Subsidiary against fluctuations in
currency exchange rates.

 

“Current Interest Period” shall have the
meaning provided in Section 2.3(g).

 

“Debt Incurrence Prepayment Event” shall mean
any issuance or incurrence by the Borrower or any of the Restricted
Subsidiaries of any Indebtedness (including any issuance by the Borrower of
Permitted Additional Notes), excluding any Indebtedness permitted to be issued
or incurred under Section 10.1 (other than clause (i)(ii) thereof).

 

 “Default”
shall mean any event, act or condition that 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.

 

“Dividends” shall have the meaning provided
in Section 10.6.

 

“Dollars” and “$” shall mean dollars
in lawful currency of the United States of America.

 

“Domestic Subsidiary” shall mean each
Subsidiary of the Borrower that is organized under the laws of the
United States, any state or territory thereof, or the District of
Columbia.

 

“Drawing” shall have the meaning provided in Section 3.4(b).

 

“Effective Date” shall mean the date upon
which the conditions set forth in Section 6 are satisfied.

 

“Engagement Letter” shall mean that certain
Repricing Engagement Letter dated as of December 1, 2006 between the
Borrower and GSCP.

 

“Environmental Claims” shall mean any and all
administrative, regulatory or judicial actions, suits, demands, demand letters,
claims, liens, notices of noncompliance or violation, investigations (other
than internal reports prepared by the Borrower or any of its Subsidiaries (a) in
the ordinary course of such Person’s business or (b) as required in
connection with a financing transaction or an acquisition or disposition of
real estate) or proceedings relating in any way to any Environmental Law or any
permit issued, or any approval given, under any such Environmental Law
(hereinafter, “Claims”), including (i) 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 (ii) any and all Claims by any third party seeking
damages, contribution, indemnification, cost recovery, compensation or
injunctive relief resulting from Hazardous Materials or arising from alleged
injury or threat of injury to health, safety or the environment.

 

14

 

 

“Environmental Law” shall mean any applicable
Federal, state, foreign or local statute, law, rule, regulation, ordinance,
code and rule of common law now or hereafter in effect and in each case as
amended, and any binding judicial or administrative interpretation thereof,
including any binding judicial or administrative order, consent decree or
judgment, relating to the environment, human health or safety or Hazardous
Materials.

 

“Equity Contributions” shall have the meaning
provided in the 2005 Credit Agreement.

 

“ERISA” shall mean the Employee Retirement
Income Security Act of 1974, as amended from time to time.  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) that together with the Borrower or
a Subsidiary thereof would be deemed to be a “single employer” within the
meaning of Section 414(b) or (c) of the Code or, solely for
purposes of Section 302 of ERISA and Section 412 of the Code, is
treated as a single employer under Section 414 of the Code.

 

“Eurodollar Loan” shall mean any Eurodollar
Term Loan or Eurodollar Revolving Credit Loan.

 

“Eurodollar Rate” shall mean, in the case of
any Eurodollar Loan, with respect to each day during each Interest Period
pertaining to such Eurodollar Loan, (a) the rate of interest determined on
the basis of the rate for deposits in Dollars for a period equal to such
Interest Period commencing on the first day of such Interest Period appearing
on Page 3750 of the Telerate screen as of 11:00 a.m. (London time)
two Business Days prior to the beginning of such Interest Period multiplied by (b) the
Statutory Reserve Rate.  In the event
that any such rate does not appear on the applicable Page of the Telerate
Service (or otherwise on such service), the “Eurodollar Rate” for the
purposes of this paragraph shall be determined by reference to such other
publicly available service for displaying Eurodollar rates as may be agreed
upon by the Administrative Agent and the Borrower or, in the absence of such
agreement, the “Eurodollar Rate” for the purposes of this paragraph
shall instead be the rate per annum notified to the Administrative Agent by the
Reference Lender as the rate at which the Reference Lender is offered Dollar
deposits at or about 11:00 a.m. (London time) two Business Days prior to
the beginning of such Interest Period in the interbank Eurodollar market where
the Eurodollar and foreign currency and exchange operations in respect of its
Eurodollar Loans are then being conducted for delivery on the first day of such
Interest Period for the number of days comprised therein and in an amount
comparable to the amount of its Eurodollar Loan to be outstanding during such
Interest Period.

 

“Eurodollar New Term Loan” shall mean any New
Term Loan bearing interest at a rate determined by reference to the Eurodollar
Rate.

 

“Eurodollar Revolving Credit Loan” shall mean
any Revolving Credit Loan bearing interest at a rate determined by reference to
the Eurodollar Rate.

 

15

 

 

“Eurodollar Term Loan” shall mean any
Eurodollar Tranche D Term Loan or Eurodollar New Term Loan, as applicable.

 

“Eurodollar Tranche D Term Loan” shall mean
any Tranche D Term Loan bearing interest at a rate determined by reference to
the Eurodollar Rate.

 

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

 

“Excess Cash Flow” shall mean, for any
period, an amount equal to the excess of (a) the sum, without duplication,
of:

 

(i)            Consolidated Net
Income for such period;

 

(ii)           an amount equal to
the amount of all after-tax non-cash expenses and losses to the extent deducted
in arriving at such Consolidated Net Income;

 

(iii)          decreases in Net
Working Capital for such period (other than decreases arising from Permitted
Acquisitions or sales, leases, transfers or other dispositions of assets by the
Borrower or any of its Restricted Subsidiaries during such period);

 

(iv)          an amount equal to
the aggregate net after-tax non-cash loss on the sale, lease, transfer or other
disposition of assets by the Borrower and the Restricted Subsidiaries during
such period (other than sales, leases, transfers or other dispositions in the
ordinary course of business) to the extent deducted in arriving at such
Consolidated Net Income; and

 

(v)           the amount of tax
expense deducted in determining Consolidated Net Income for such period to the
extent it exceeds the amount of cash taxes paid in such period;

 

over (b) the sum, without
duplication, of:

 

(i)            an amount equal to
the amount of all after-tax non-cash gains included in arriving at such
Consolidated Net Income;

 

(ii)           without duplication
of amounts deducted pursuant to clause (xii) below in such period, the
aggregate amount actually paid by the Borrower and the Restricted Subsidiaries
in cash during such period on account of Capital Expenditures (excluding the
principal amount of Indebtedness incurred in connection with such Capital
Expenditures, whether incurred in such period or in a subsequent period);

 

(iii)          the aggregate
amount of all prepayments of Revolving Credit Loans and Swingline Loans made
during such period to the extent accompanying reductions of the Total Revolving
Credit Commitment except to the extent financed with the proceeds of other
Indebtedness of the Borrower or the Restricted Subsidiaries;

 

(iv)          the aggregate amount
of all principal payments of Indebtedness of the Borrower or the Restricted
Subsidiaries (including any Term Loans and the principal

 

16

 

 

component of payments in respect of Capitalized Lease Obligations, but
excluding Revolving Credit Loans, Swingline Loans and voluntary prepayments of
Term Loans pursuant to Section 5.1) made during such period (other than in
respect of any revolving credit facility to the extent there is not an
equivalent permanent reduction in commitments thereunder) except to the extent
financed with the proceeds of other Indebtedness of the Borrower or the
Restricted Subsidiaries;

 

(v)           an amount equal to
the aggregate net after-tax non-cash gain on the sale, lease, transfer or other
disposition of assets by the Borrower and the Restricted Subsidiaries during
such period (other than sales, leases, transfers or other dispositions  in the ordinary course of business) to the
extent included in arriving at such Consolidated Net Income;

 

(vi)          increases in Net
Working Capital for such period (other than increases arising from Permitted
Acquisitions or sales, leases, transfers or other dispositions of assets by the
Borrower or any of its Restricted Subsidiaries during such period);

 

(vii)         the amount of
dividends, distributions or repurchases paid or made during such period
pursuant to clause (b), (c), (d), (e), or (f) of the proviso to Section 10.6
to the extent such dividends or distributions were (1) paid with the
proceeds of any amount referred to in paragraph (a) of this definition and
(2) financed with internally generated cash flow of the Borrower and the
Restricted Subsidiaries;

 

(viii)        the aggregate amount
of expenditures actually made by the Borrower and the Restricted Subsidiaries
in cash during such period (including expenditures for the payment of financing
fees) to the extent that such expenditures are not expensed during such period;

 

(ix)           without duplication
of amounts deducted pursuant to clause (xii) below in such period, the
aggregate amount of cash consideration paid by the Borrower and its Restricted
Subsidiaries during such period in connection with Permitted Acquisitions to
the extent such Permitted Acquisitions were financed with internally generated
cash flow of the Borrower and the Restricted Subsidiaries (excluding any such
amounts funded through the utilization of the Available Amount);

 

(x)            the aggregate
amount of any premium, make-whole or penalty payments actually paid in cash by
the Borrower and the Restricted Subsidiaries during such period that are
required to be made in connection with any prepayment of Indebtedness;

 

(xi)           the amount of cash
taxes paid in such period to the extent they exceed the amount of tax expense
deducted in determining Consolidated Net Income for such period; and

 

(xii)          without duplication
of amounts deducted from Excess Cash Flow in other periods, the aggregate
consideration required to be paid in cash by the Borrower or any of the
Restricted Subsidiaries pursuant to binding contracts (the “Contract
Consideration”) entered into prior to or during such period relating to
Permitted Acquisitions or Capital Expenditures to be consummated or made during
the period of four consecutive fiscal

 

17

 

 

quarters of the Borrower following the end of such period, provided
that to the extent the aggregate amount of internally generated cash actually
utilized to finance such Permitted Acquisitions or Capital Expenditures during
such period of four consecutive fiscal quarters is less than the Contract
Consideration, the amount of such shortfall shall be added to the calculation
of Excess Cash Flow at the end of such period of four consecutive fiscal
quarters;

 

provided, that, in no event shall Excess Cash Flow exceed an
amount equal to the difference of (a) all cash and cash equivalents
(including Segregated Cash) on the consolidated balance sheet of the Borrower
and its Restricted Subsidiaries, as of the last day of such period, less (b) all Indebtedness on the
balance sheet of the Regulated Subsidiaries as of such date, other than (A) Indebtedness
under Margin Lines of Credit and under Warehouse Lines of Credit and (B) other
Indebtedness that has been approved as regulatory capital for computation of
Net Capital (as defined in Rule 15c3-1 of the Exchange Act) less (c) all Required
Cash of all such Persons as of such date.

 

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

 

“Excluded Subsidiary” shall mean (i) any
Subsidiary of the Borrower (a) on the Closing Date, that is listed on
Schedule 1.1(c) and (b) created or acquired after the Closing Date or
otherwise becomes after such date, a regulated entity that is subject to net
worth or net capital or similar capital and surplus restrictions under
Applicable Laws or accounting policies or principles or that is otherwise
restricted by Applicable Law from guaranteeing Indebtedness and/or granting
security interests in its assets or property and (ii) any Immaterial
Subsidiary.

 

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

 

“Fees” shall mean all amounts payable
pursuant to, or referred to in, Section 4.1.

 

“Final Date” shall mean with respect to
Revolving Credit Commitments and Letters of Credit, the date on which the
Revolving Credit Commitments shall have terminated, no Revolving Credit Loans
shall be outstanding and the Letters of Credit Outstanding shall have been
reduced to zero.

 

“Financial Performance Covenants” shall mean
the covenants of the Borrower set forth in Sections 10.9 and 10.10.

 

“First Reaffirmation Agreement” shall mean
that certain Reaffirmation Agreement, dated as of the First Restatement
Effective Date, by and among the Credit Parties, the Administrative Agent and
the Collateral Agent, pursuant to which the Credit Parties

 

18

 

 

acknowledged and confirmed
the full force and effect of the Security Documents and the Guarantee with
respect to this Agreement and the Obligations.

 

“First Restatement Effective Date” shall mean
December 29, 2006.

 

“Foreign Asset Sale” shall have the meaning
provided in Section 5.2(h).

 

“Foreign Recovery Event” shall have the
meaning provided in Section 5.2(h).

 

“Foreign Subsidiary” shall mean each
Subsidiary of the Borrower that is not a Domestic Subsidiary.

 

“Fronting Fee” shall have the meaning
provided in Section 4.1(b).

 

“Funded Debt” shall mean all indebtedness of
the Borrower and the Restricted Subsidiaries for borrowed money that matures
more than one year from the date of its creation or matures within one year
from such date that is renewable or extendable, at the option of the Borrower
or one of the Restricted Subsidiaries, to a date more than one year from such
date or arises under a revolving credit or similar agreement that obligates the
lender or lenders to extend credit during a period of more than one year from
such date, including all amounts of Funded Debt required to be paid or prepaid
within one year from the date of its creation and, in the case of the Borrower,
Indebtedness in respect of the Loans.

 

 “GAAP”
shall mean generally accepted accounting principles in the United States of
America as in effect from time to time; provided, however, that
if there occurs after the date hereof any change in GAAP that affects in any
respect the calculation of any covenant contained in Section 10, the
Lenders and the Borrower shall negotiate in good faith amendments to the
provisions of this Agreement that relate to the calculation of such covenant
with the intent of having the respective positions of the Lenders and the
Borrower after such change in GAAP conform as nearly as possible to their
respective positions as of the date of this Agreement and, until any such
amendments have been agreed upon, the covenants in Section 10 shall be
calculated as if no such change in GAAP has occurred.

 

“Governmental Authority” shall mean any
nation or government, any state, province, territory or other political
subdivision thereof, and any entity exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to
government.

 

“GSCP” shall have the meaning provided in the
preamble to this Agreement.

 

“Guarantee” shall mean the Guarantee, dated
as of the Closing Date, among each Guarantor in favor of the Administrative
Agent for the benefit of the Agents and the Lenders, substantially in the form
of Exhibit B attached to the 2005 Credit Agreement, as the same has been
or may be amended, supplemented or otherwise modified from time to time in
accordance with the terms thereof and of the other Credit Documents.

 

“Guarantee Obligations” shall mean, as to any
Person, any obligation of such Person guaranteeing or intended to guarantee any
Indebtedness of any other Person (the “primary obligor”) in any manner,
whether directly or indirectly, including any obligation of such Person,

 

19

 

 

whether or not contingent, (a) to
purchase any such Indebtedness or any property constituting direct or indirect
security therefor (b) to advance or supply funds (i) for the purchase
or payment of any such Indebtedness or (ii) to maintain working capital or
equity capital of the primary obligor or otherwise to maintain the net worth or
solvency of the primary obligor, (c) to purchase property, securities or
services primarily for the purpose of assuring the owner of any such
Indebtedness of the ability of the primary obligor to make payment of such
Indebtedness or (d) otherwise to assure or hold harmless the owner of such
Indebtedness against loss in respect thereof; provided, however,
that the term “Guarantee Obligations” shall not include endorsements of
instruments for deposit or collection in the ordinary course of business or
customary and reasonable indemnity obligations in effect on the Closing Date or
entered into in connection with any acquisition or disposition of assets
permitted by this Agreement (other than such obligations with respect to
Indebtedness).  The amount of any
Guarantee Obligation shall be deemed to be an amount equal to the stated or
determinable amount of the Indebtedness in respect of which such Guarantee
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.

 

“Guarantors” shall mean (a) each of
Holdings and each Domestic Subsidiary of Holdings (other than Borrower or any
Excluded Subsidiary) on the Effective Date and (b) each Domestic
Subsidiary (other than any Excluded Subsidiary, any Unrestricted Subsidiary or
any direct or indirect Domestic Subsidiary of a Foreign Subsidiary) that
becomes a party to the Guarantee after the Effective Date pursuant to Section 9.11.

 

“Hazardous Materials” shall mean (a) any
petroleum or petroleum products, radioactive materials, friable asbestos, urea
formaldehyde foam insulation, transformers or other equipment that contain
dielectric fluid containing regulated 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 waste”, “restricted hazardous waste”, “toxic
substances”, “toxic pollutants”, “contaminants”, or “pollutants”, or words of
similar import, under any applicable Environmental Law; and (c) any other
chemical, material or substance, which is prohibited, limited or regulated by any
Environmental Law.

 

“Hedging Agreement” shall mean any Currency
Hedging Agreement or Interest Rate Hedging Agreement, as applicable.

 

“Hedging Obligations” shall mean, with
respect to any Person, the obligations of such Person under Hedging Agreements.

 

“Historical Financial Statements” shall mean,
as of the Effective Date, (a) the audited financial statements of the
Borrower and its Subsidiaries for the immediately preceding three fiscal years,
and (b) to the extent reasonably available, the unaudited quarterly
financial statements of the Borrower and its Subsidiaries for each fiscal
quarter ended at least 45 days before the Effective Date and following the
latest date for which audited financial statements are available, in each case
consisting of balance sheets and the related consolidated statements of income,
stockholders’ equity and cash flows for such periods.

 

20

 

“Holdings” shall have the meaning provided in
the preamble to this Agreement.

 

“HUD” shall mean the United States Department of Housing and
Urban Development.

 

“HUD-Regulated Subsidiary” shall mean the Subsidiary of the
Borrower that is a HUD-approved non-supervised mortgagee.

 

“HUD-Regulated Subsidiary Required Cash” shall mean, as of any
date of determination, the greater of (a) $100,000 and (b) the
difference of (i) all cash and cash equivalents on the balance sheet of
the HUD-Regulated Subsidiary as of such date and (ii) the Adjusted Net
Worth (as referenced in 12 CFR Section 202.5(n)) of the HUD-Regulated
Subsidiary as of such date above $500,000.

 

“Immaterial Subsidiary” shall mean each
Subsidiary of the Borrower other than a Material Subsidiary.

 

“Increased Amount Date” shall have the
meaning provided in Section 2.14(a).

 

“Indebtedness” of any Person shall mean
(a) all indebtedness of such Person for borrowed money, (b) the
deferred purchase price of assets or services that in accordance with GAAP would
be included as liabilities in the balance sheet of such Person, (c) the
face amount of all letters of credit issued for the account of such Person and,
without duplication, all drafts drawn thereunder, (d) all Indebtedness of
a second Person secured by any Lien on any property owned by such first Person,
whether or not such Indebtedness has been assumed, (e) all Capitalized
Lease Obligations of such Person, (f) all obligations of such Person under
interest rate swap, cap or collar agreements, interest rate future or option
contracts, currency swap agreements, currency future or option contracts,
commodity price protection agreements or other commodity price hedging
agreements and other similar agreements (including Hedging Agreements) and
(g) without duplication, all Guarantee Obligations of such Person in
respect of Indebtedness described in clauses (a) through (f); provided,
that Indebtedness shall not include (i) trade payables and accrued
expenses arising in the ordinary course of business, (ii) prepaid or
deferred revenue arising in the ordinary course of business and
(iii) purchase price holdbacks arising in the ordinary course of business
in respect of a portion of the purchase price of an asset to satisfy warrants
or other unperformed obligations of the seller of such asset.

 

“Interest Period” shall mean, with respect to
any Term Loan or Revolving Credit Loan, the interest period applicable thereto,
as determined pursuant to Section 2.9.

 

“Interest Rate Hedging Agreement” shall mean
any swap, cap, collar, future, option or similar agreement entered into by the
Borrower or any Restricted Subsidiary in the ordinary course of business and
not for speculative purposes in order to protect the Borrower or such
Restricted Subsidiary against fluctuations in interest rates.

 

“Introducing Broker-Dealer Minimum Capital”
shall mean for those Subsidiaries of the Borrower that are broker-dealers
exempt from the provisions of SEC Rule 15c3-3, as of any date of
determination, the greater of (a) 120% of such Subsidiaries’ consolidated
minimum

 

21

 

dollar Net Capital required
(as defined in
SEC Rule 15c3-1), and (b) the consolidated Aggregate
Indebtedness (as defined in SEC Rule 15c3-1) of such Subsidiaries, divided
by ten.

 

“Investment” shall have the meaning provided
in Section 10.5.

 

“IPO” shall mean, with respect to any Person,
a registered initial public offering of the Capital Stock of such Person (other
than on Form S-8).

 

“Joinder Agreement” shall mean an agreement
substantially in the form of Exhibit J-1 or J-2, as the case may be.

 

“Lender” shall have the meaning provided in
the preamble to this Agreement.

 

“Lender Consent Letters” shall mean the
lender consent letters authorizing the amendment and restatement of the
Original Credit Agreement and in the case of Continuing Lenders, agreeing to
convert all or a portion of the Original Term Loans needed by such Lender to
Tranche D Term Loans.

 

“Lender Counterparty” shall mean each Agent
or Lender or any Affiliate of an Agent or Lender that is a counterparty to a
Hedging Agreement (including any Person who is an Agent or Lender (and any
Affiliate thereof) as of the Closing Date but subsequently, whether before or
after entering into a Hedging Agreement, ceases to be a Lender).

 

“Lender Default” shall mean (a) the
failure (which has not been cured) of a Lender to make available its portion of
any Borrowing or to fund its portion of any unreimbursed payment under Section 3.4
or (b) a Lender having notified the Administrative Agent and/or the
Borrower that it does not intend to comply with the obligations under Section 2.1,
3.3 or 3.4, in the case of either clause (a) or clause (b) above,
as a result of the appointment of a receiver or conservator with respect to
such Lender at the direction or request of any regulatory agency or authority.

 

“Letter of Credit” shall have the meaning
provided in Section 3.1(a).

 

“Letter of Credit Commitment” shall mean
$50,000,000, as the same may be reduced from time to time pursuant to Section 4.2.

 

“Letter of Credit Exposure” shall mean, with
respect to any Lender, at any time, the sum of (a) the amount of any
Unpaid Drawings in respect of which such Lender has made (or is required to
have made) Revolving Credit Loans pursuant to Section 3.4(a) at such
time and (b) such Lender’s Revolving Credit Commitment Percentage of the
Letters of Credit Outstanding at such time (excluding the portion thereof
consisting of Unpaid Drawings in respect of which the Lenders have made (or are
required to have made) Revolving Credit Loans pursuant to Section 3.4(a)).

 

“Letter of Credit Fee” shall have the meaning
provided in Section 4.1(c).

 

“Letter of Credit Issuer” shall mean MSSF,
any of its Affiliates and any one or more Persons who shall become a Letter of
Credit Issuer pursuant to Section 3.6.

 

 

22

 

 

“Letter of Credit Participant” shall have the
meaning provided in Section 3.3(a).

 

“Letter of Credit Participation” shall have
the meaning provided in Section 3.3(a).

 

“Letter of Credit Request” shall have the
meaning provided in Section 3.2(a).

 

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

 

“Level I Status” shall mean, on any
date, the Consolidated Total Debt to Consolidated EBITDA Ratio as of such date
is greater than 5.75:1.00.

 

“Level II Status” shall mean, on any
date, the Consolidated Total Debt to Consolidated EBITDA Ratio as of such date
is less than or equal to 5.75:1.00.

 

“Lien” shall mean any mortgage, pledge,
security interest, hypothecation, assignment, lien (statutory or other) or
similar encumbrance, and any easement, right-of-way, license, restriction
(including zoning restrictions), defect, exception or irregularity in title or
similar change or encumbrance (including any agreement to give any of the
foregoing, any conditional sale or other title retention agreement or any lease
in the nature thereof).

 

“Loan” shall mean any Revolving Credit Loan,
New Revolving Swingline Loan, Tranche D Term Loan or New Term Loan made by any
Lender hereunder.

 

“Management Group” shall mean, at any time,
the Chairman of the Board, any President, any Executive Vice President or Vice
President, any Managing Director, any Treasurer and any Secretary of Holdings,
the Borrower or any Restricted Subsidiary at such time.

 

“Management Investors” shall mean the
management officers, directors and employees of Holdings, the Borrower and the
Restricted Subsidiaries who became investors in Holdings, the Borrower or any
of their direct or indirect parent entities on or before the date that was 12
months after the Closing Date.

 

“Mandatory Borrowing” shall have the meaning
provided in Section 2.1(e)(ii).

 

“Margin Line of Credit” shall mean any lines
of credit established consistent with past business practices and used by the
Borrower and its Subsidiaries in the ordinary course of business and to fund or
support Margin Loans of customers of the Borrower and its Subsidiaries and any
replacement lines established on substantially similar terms and conditions.

 

“Margin Loans” as defined in
Regulation T.

 

“Material Adverse Change” shall mean any
change in the business, assets, operations, properties or financial condition
of the Borrower and its Subsidiaries, taken as a whole, that would materially
adversely affect the ability of the Borrower and the other Credit Parties,
taken as a whole, to perform their obligations under this Agreement or any of
the other Credit Documents.

 

23

 

“Material Adverse Effect” shall mean a
circumstance or condition affecting the business, assets, operations, properties
or financial condition of the Borrower and its Subsidiaries, taken as a whole,
that would materially adversely affect (a) the ability of the Borrower and
the other Credit Parties, taken as a whole, to perform their obligations under
this Agreement or any of the other Credit Documents or (b) the rights and
remedies of the Administrative Agent and the Lenders under this Agreement or
any of the other Credit Documents.

 

“Material Subsidiary” shall mean, at any date
of determination, each Restricted Subsidiary of the Borrower (a) whose
total assets at the last day of the Test Period ending on the last day of the
most recent fiscal period for which Section 9.1 Financials have been
delivered were equal to or greater than 5% of the Consolidated Total Assets of
the Borrower and the Restricted Subsidiaries at such date or (b) whose
gross revenues for such Test Period were equal to or greater than 5% of the
consolidated gross revenues of the Borrower and the Restricted Subsidiaries for
such period, in each case determined in accordance with GAAP.

 

“Maturity Date” shall mean the Tranche D Term
Loan Maturity Date, the New Term Loan Maturity Date, the Revolving Credit
Maturity Date, or the Swingline Maturity Date, as applicable.

 

“Mezz Participants” shall mean the holders of
the Senior Unsecured Subordinated Notes who hold any equity stake in Holdings
or the Borrower.

 

“Minimum Borrowing Amount” shall mean (a) with
respect to a Borrowing of Term Loans or Revolving Credit Loans, $1,000,000 and (b) with
respect to a Borrowing of Swingline Loans, $100,000.

 

“Minority Investment” shall mean any Person
(other than a Subsidiary) in which the Borrower or any Restricted Subsidiary
owns Capital Stock.

 

“Moody’s” shall mean Moody’s Investors
Service, Inc. or any successor by merger or consolidation to its business.

 

“Mortgage” shall mean a Mortgage or Deed of
Trust, Assignment of Leases and Rents, Security Agreement and Financing
Statement or other security document entered into by the owner of a Mortgaged
Property and the Collateral Agent for the benefit of the Secured Parties in
respect of that Mortgaged Property, substantially in the form of Exhibit C
or, in the case of any Mortgaged Property located outside the United States of
America, in such form as agreed between the Borrower and the Collateral Agent,
as the same may be amended, supplemented or otherwise modified from time to
time in accordance with the terms thereof and of the other Credit Documents.

 

“Mortgaged Property” shall mean, initially,
the parcel of real estate and the improvements thereto owned by a Credit Party
and identified on Schedule 1.1(a), and thereafter, each other parcel of real
property and improvements thereto with respect to which a Mortgage is granted
pursuant to Section 9.14(b).

 

“MS” shall have the meaning provided in the
preamble to this Agreement.

 

24

 

“MSSF” shall have the meaning provided in the
preamble to this Agreement.

 

“Net Cash Proceeds” shall mean, with respect
to any Prepayment Event, (a) the gross cash proceeds (including payments
from time to time in respect of installment obligations, if applicable)
received by or on behalf of the Borrower or any of the Restricted Subsidiaries
in respect of such Prepayment Event, less (b) the sum of:

 

(i)            in
the case of any Prepayment Event, the amount, if any, of all taxes paid or
estimated to be payable by Holdings, the Borrower or any of the Restricted
Subsidiaries in connection with such Prepayment Event,

 

(ii)           in
the case of any Prepayment Event, the amount of any reasonable reserve
established in accordance with GAAP against any liabilities (other than any
taxes deducted pursuant to clause (i) above) (x) associated with
the assets that are the subject of such Prepayment Event and (y) retained
by Holdings, the Borrower or any of the Restricted Subsidiaries; provided,
that the amount of any subsequent reduction of such reserve (other than in
connection with a payment in respect of any such liability) shall be deemed to
be Net Cash Proceeds of such Prepayment Event occurring on the date of such
reduction,

 

(iii)          in
the case of any Prepayment Event, the amount of any Indebtedness secured by a
Lien on the assets that are the subject of such Prepayment Event to the extent
that the instrument creating or evidencing such Indebtedness requires that such
Indebtedness be repaid upon consummation of such Prepayment Event and such
Indebtedness is actually so repaid,

 

(iv)          in
the case of any Asset Sale Prepayment Event (other than a transaction permitted
by Section 10.4(d)(ii)) or Permitted Sale Leaseback, the amount of any
proceeds of such Asset Sale Prepayment Event or such Permitted Sale Leaseback
that the Borrower or the applicable Restricted Subsidiary has reinvested (or
intends to reinvest), or has entered into an Acceptable Reinvestment Commitment
to reinvest, within the Reinvestment Period, in the business of the Borrower or
any of the Restricted Subsidiaries (subject to Section 9.13); provided,
that:

 

(A)          the Borrower or the
applicable Restricted Subsidiary shall comply with Sections 9.11, 9.12 and 9.14(b) with
respect to such reinvestment;

 

(B)           any portion of such
proceeds that has not been so reinvested or made subject to an Acceptable
Reinvestment Commitment within the Reinvestment Period shall (x) be deemed
to be Net Cash Proceeds of an Asset Sale Prepayment Event or Permitted Sale
Leaseback occurring on the later of (1) the last day of the Reinvestment
Period and (2) 180 days after the date that the Borrower or such
Restricted Subsidiary has entered into an Acceptable Reinvestment Commitment
and (y) be applied to the repayment of Term Loans in accordance with Section 5.2(a)(i);
and

 

(C)           any proceeds subject
to an Acceptable Reinvestment Commitment that is later canceled or terminated
for any reason before such proceeds are applied in accordance therewith shall
be applied to the repayment of Term Loans in accordance with Section 5.2(a)(i),
unless the Borrower or the applicable Restricted Subsidiary enters

 

25

 

into another Acceptable Reinvestment Commitment with respect to such
proceeds prior to the end of the Reinvestment Period,

 

(v)           in
the case of any Recovery Prepayment Event, the amount of any proceeds of such
Recovery Prepayment Event (x) that the Borrower or the applicable
Restricted Subsidiary has reinvested (or intends to reinvest), or has entered
into an Acceptable Reinvestment Commitment to reinvest, within the Reinvestment
Period, in the business of the Borrower or any of the Restricted Subsidiaries
(subject to Section 9.13), including for the repair, restoration or
replacement of the asset or assets subject to such Recovery Prepayment Event,
or (y) for which the Borrower or the applicable Restricted Subsidiary has
provided a Restoration Certification within the Reinvestment Period; provided,
that:

 

(A)          the Borrower or the
applicable Restricted Subsidiary shall comply with Sections 9.11, 9.12 and 9.14(b) with
respect to such reinvestment;

 

(B)           any portion of such
proceeds that has not been so reinvested or made subject to an Acceptable
Reinvestment Commitment or Restoration Certification within the Reinvestment
Period shall (x) be deemed to be Net Cash Proceeds of a Recovery
Prepayment Event occurring on the later of (1) the last day of the
Reinvestment Period and (2) 180 days after the date that the Borrower or
such Restricted Subsidiary has entered into an Acceptable Reinvestment
Commitment or provided a Restoration Certification and (y) be applied to
the repayment of Term Loans in accordance with Section 5.2(a)(i), as
applicable; and

 

(C)           any proceeds subject
to an Acceptable Reinvestment Commitment that is later canceled or terminated
for any reason before such proceeds are applied in accordance therewith shall
be applied to the repayment of Term Loans in accordance with Section 5.2(a)(i),
unless the Borrower or the applicable Restricted Subsidiary enters into another
Acceptable Reinvestment Commitment with respect to such proceeds prior to the
end of the Reinvestment Period,

 

(vi)          in
the case of any Prepayment Event, reasonable and customary fees, commissions,
expenses, issuance costs, discounts and other costs paid by Holdings, the
Borrower or any of the Restricted Subsidiaries, as applicable, in connection
with such Prepayment Event (other than those payable to Holdings, the Borrower
or any Subsidiary of the Borrower), in each case only to the extent not already
deducted in arriving at the amount referred to in clause (a) above.

 

“Net Working Capital” shall mean, at any date, the excess of (a) the
cumulative sum of all amounts that would in conformity with GAAP constitute “assets”
on the consolidated balance sheet of the Borrower and its Restricted
Subsidiaries at such date, excluding assets constituting (i) cash, cash
equivalents and bank overdrafts, other than all Required Cash of all such
Persons as at such date (which shall be included as part of Net Working
Capital), (ii) taxes receivable and deferred income taxes of all such
Persons, (iii) property, plant and equipment of all such Persons and (iv) goodwill
and intangibles of all such Persons, over (b) the cumulative sum of all
amounts that would, in conformity with GAAP, constitute “liabilities” on the
consolidated balance sheet of the Borrower and its Restricted Subsidiaries on
such date,

 

26

 

 

excluding (i) all Indebtedness, other than
Indebtedness under Margin Lines of Credit and under Warehouse Lines of Credit
(which shall be included as part of Net Working Capital), (ii) taxes
payable and deferred income taxes of all such Persons, (iii) stockholder’s
equity of all such Persons and (iv) dividends payable of all such Persons.

 

“New
Letter of Credit Exposure” shall have the meaning provided in Section 2.14(b).

 

“New
Commitments” shall have the meaning provided in Section 2.14(a).

 

“New Term Loan Commitments” shall have the
meaning provided in Section 2.14(a).

 

“New Term Loan Facility” shall mean any
credit facility constituting New Term Loan Commitments and New Term Loans.

 

“New Term Loan Lender” shall have the meaning
provided in Section 2.14(b).

 

“New Term Loans” shall have the meaning
provided in Section 2.14(c).

 

“New Term Loan Maturity Date” shall mean the
date on which a New Term Loan matures.

 

“Non-Defaulting Lender” shall mean and
include each Lender other than a Defaulting Lender.

 

“Non-Excluded Taxes” shall have the meaning
provided in Section 5.4(a).

 

“Notes Offering” shall have the meaning
provided in the recitals to this Agreement.

 

“Notice of Borrowing” shall have the meaning
provided in Section 2.3.

 

“Notice of Conversion or Continuation” shall
have the meaning provided in Section 2.6.

 

“Obligations” shall mean the collective
reference to (a) the due and punctual payment of (i) the principal of
and premium, if any, and interest at the applicable rate provided in this
Agreement (including interest accruing during the pendency of any bankruptcy,
insolvency, receivership or other similar proceeding, regardless of whether
allowed or allowable in such proceeding) on the Loans, when and as due, whether
at maturity, by acceleration, upon one or more dates set for prepayment or
otherwise, (ii) each payment required to be made by the Borrower under
this Agreement in respect of any Letter of Credit, when and as due, including
payments in respect of reimbursement of disbursements, interest thereon and
obligations to provide cash collateral, and (iii) all other monetary obligations,
including fees, costs, expenses and indemnities, whether primary, secondary,
direct, contingent, fixed or otherwise (including monetary obligations incurred
during the pendency of any bankruptcy, insolvency, receivership or other
similar proceeding, regardless of whether allowed or allowable in such
proceeding), of

 

27

 

the Borrower or any other
Credit Party to any of the Secured Parties under this Agreement and the other
Credit Documents, (b) the due and punctual performance of all covenants,
agreements, obligations and liabilities of the Borrower under or pursuant to
this Agreement and the other Credit Documents, (c) the due and punctual
payment and performance of all the covenants, agreements, and liabilities of
each other Credit Party under or pursuant to this Agreement or the other Credit
Documents, (d) the due and punctual payment and performance of all
obligations of each Credit Party under each Hedging Agreement with a Lender
Counterparty and (e) the due and punctual payment and performance of all
obligations in respect of overdrafts and related liabilities owed to the Administrative
Agent or its affiliates arising from or in connection with treasury, depositary
or cash management services or in connection with any automated clearinghouse
transfer of funds.

 

“OCC” shall mean the Office of the
Comptroller of the Currency.

 

“OCC-Regulated Subsidiary” shall mean any Subsidiary of the
Borrower that is regulated by the OCC.

 

“OCC-Regulated Subsidiary Required Cash” shall mean, as of any
date of determination, (a) all cash and cash equivalents on the balance
sheet of any OCC-Regulated Subsidiary as of such date minus (b) all
Indebtedness on the balance sheet of any OCC-Regulated Subsidiary as of such
date minus (c) the difference of (i) the Risk-Based Capital (as
referenced in 12 U.S.C. Section 282) of any OCC-Regulated Subsidiary as of
such date and (ii) $4,000,000 (or such other amount that is required by
the OCC or otherwise agreed to by any OCC-Regulated Subsidiary and the OCC).

 

“Original Collateral” shall have the meaning provided in the
recitals to this Agreement.

 

“Original Credit Agreement” shall have the
meaning provided in the recitals to this Agreement.

 

“Original Credit Documents” shall have the meaning provided in
the recital to this Agreement.

 

“Original Lenders” shall have the meaning
provided in the recitals hereto.

 

“Original Obligations” shall have the meaning provided in the
recitals to this Agreement.

 

“Original Term Loans” shall have the meaning
provided in the recitals hereto.

 

“Pacific Life Acquisition” shall mean the
acquisition by Borrower (or a Restricted Subsidiary thereof) of all of the
outstanding Capital Stock of Pacific Select Group, LLC.

 

“Participant” shall have the meaning provided
in Section 13.6(c)(i).

 

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

 

28

 

 

“Perfection Certificate” shall mean the
certificate of the Borrower delivered on the Closing Date in substantially the
form of Exhibit D and attached to the 2005 Credit Agreement.

 

“Permitted Acquisition” shall mean (a) the
UVEST Acquisition; (b) the Pacific Life Acquisition and (c) any other
acquisition, by merger or otherwise, by the Borrower or any of the Restricted
Subsidiaries of assets or Capital Stock, so long as (i) such acquisition
and all transactions related thereto shall be consummated in accordance with
all Applicable Laws; (ii) such acquisition shall result in the issuer of
such Capital Stock becoming a Restricted Subsidiary and, to the extent required
by Section 9.11, a Guarantor; (iii) such acquisition shall result in
the Collateral Agent, for the benefit of the Secured Parties, being granted a
security interest in any Capital Stock or any assets so acquired to the extent
required by Sections 9.11, 9.12 and/or 9.14(b); (iv) after giving effect
to such acquisition, no Default or Event of Default shall have occurred and be
continuing; (v) after giving effect to such acquisition, the Borrower and
its Restricted Subsidiaries shall be in compliance with Section 9.13; (vi) the
Borrower shall be in compliance, on a pro forma basis after giving effect to
such acquisition (including any Indebtedness assumed or permitted to exist or
incurred pursuant to Sections 10.1(j) and 10.1(k), respectively, and
any related Pro Forma Adjustment), with the covenants set forth in
Sections 10.9 and 10.10, as such covenants are recomputed as at the last
day of the most recently ended Test Period under such Sections as if such
acquisition had occurred on the first day of such Test Period.

 

“Permitted Additional Notes” shall mean
senior, mezzanine or subordinated notes issued by Holdings or the Borrower; provided,
that (a) the terms of such notes do not provide for any scheduled
repayment, mandatory redemption, sinking fund obligation or other payment prior
to the Senior Unsecured Subordinated Note Maturity Date, other than customary
offers to purchase upon a change of control, asset sale or casualty or
condemnation event and customary acceleration rights upon an event of default, (b) the
covenants, events of default, Subsidiary guarantees and other terms for such
notes (provided that such notes shall have interest rates and redemption
premiums determined by the Board of Directors of Holdings or the Borrower, as
applicable to be market rates and premiums at the time of issuance of such
notes), taken as a whole, are not more restrictive on Holdings, the Borrower
and their Subsidiaries, or less favorable to the Lenders, taken as a whole,
than the terms of the Senior Unsecured Subordinated Notes (as in effect on the
Effective Date), (c) if such notes are subordinated notes, the terms of
such notes provide for customary subordination of such notes to the Obligations
and (d) no Subsidiary of Holdings or the Borrower (other than the Borrower
or a Guarantor) is an obligor under such notes that is not an obligor under the
Senior Unsecured Subordinated Notes.

 

“Permitted Cure Security” shall mean an
equity security of Holdings or the Borrower having no mandatory redemption,
repurchase or similar requirements prior to 91 days after the latest maturity
date for any of the Loans, and upon which all dividends or distributions (if
any) shall be payable solely in additional shares of such equity security.

 

“Permitted Investments” shall mean (a) Dollars
and, with respect to any Foreign Subsidiaries, local currencies held by such
Foreign Subsidiary, in each case in the ordinary course of business and
securities issued or unconditionally guaranteed by the United States government
or any agency or instrumentality thereof, in each case having maturities of not
more

 

29

 

than 24 months from the date
of acquisition thereof; (b) securities issued by any state of the United
States of America or any political subdivision of any such state or any public
instrumentality thereof or any political subdivision of any such state or any
public instrumentality thereof having maturities of not more than 24 months
from the date of acquisition thereof and, at the time of acquisition, having an
investment grade rating generally obtainable from either S&P or Moody’s
(or, if at any time neither S&P nor Moody’s shall be rating such
obligations, then from another nationally recognized rating service); (c) commercial
paper or variable or fixed rate notes issued by or  guaranteed
by any Lender or any bank holding company owning any Lender; (d) commercial
paper or variable or fixed rate notes maturing no more than 12 months
after the date of creation thereof and, at the time of acquisition, having a
rating of at least A-2 or P-2 from either S&P or Moody’s (or, if at any
time neither S&P nor Moody’s shall be rating such obligations, an
equivalent rating from another nationally recognized rating service); (e) time
deposits of, or domestic and Eurodollar certificates of deposit or bankers’
acceptances maturing no more than two years after the date of acquisition
thereof, issued by any Lender or any other bank having combined capital and
surplus of not less than $250,000,000 in the case of domestic banks and $100,000,000
(or the dollar equivalent thereof) in the case of foreign banks; (f) repurchase
agreements with a term of not more than 30 days for underlying securities
of the type described in clauses (a), (b) and (e) above entered into
with any bank meeting the qualifications specified in clause (e) above or
securities dealers of recognized national standing; (g) marketable
short-term money market and similar securities having a rating of at least A-2
or P-2 from either S&P or Moody’s (or, if at any time neither S&P nor
Moody’s shall be rating such obligations, an equivalent rating from another
nationally recognized rating service); (h) shares of investment companies
that are registered under the Investment Company Act of 1940 and invest solely
in one or more of the types of securities described in clauses (a) through
(g) above; and (i) in the case of investments by any Restricted
Foreign Subsidiary or investments made in a country outside the United States
of America, other customarily utilized high-quality investments in the country
where such Restricted Foreign Subsidiary is located or in which such investment
is made.

 

“Permitted Investors” shall mean the
Sponsors, the Mezz Participants and the Management Investors.

 

“Permitted Liens” shall mean (a) Liens
for taxes, assessments or other governmental charges or claims that are either (i) not
yet due and payable and not subject to penalties for nonpayment or (ii) being
contested in good faith by appropriate proceedings for which appropriate
reserves have been established in accordance with GAAP; (b) Liens in
respect of property or assets of Holdings, the Borrower or any of its
Subsidiaries imposed by law, such as landlords’, carriers’, warehousemen’s and
mechanics’ Liens and other similar Liens, in each case so long as such Liens
arise in the ordinary course of business and do not individually or in the
aggregate have a Material Adverse Effect; (c) Liens arising from judgments
or decrees in circumstances not constituting an Event of Default under Section 11.10;
(d) Liens incurred or pledges or deposits made in connection with workers’
compensation, unemployment insurance and other types of social security
legislation, or to secure the performance of tenders, statutory obligations,
surety and appeal bonds, bids, leases, government contracts, trade contracts,
performance and return-of-money bonds and other similar obligations incurred in
the ordinary course of business; (e) ground leases or subleases, licenses
or sublicenses in respect of real property on which facilities owned or leased
by Holdings, the Borrower or any of its Subsidiaries

 

30

are located; (f) easements,
rights-of-way, licenses, restrictions (including zoning restrictions), minor
defects, exceptions or irregularities in title and other similar charges or
encumbrances, in each case not interfering in any material respect with the
business of Holdings, the Borrower and its Subsidiaries, taken as a whole, and
any exception on the title policies issued in connection with any Mortgaged
Property; (g) any interest or title of a lessor or secured by a lessor’s
interest under any lease permitted by this Agreement; (h) Liens in favor
of customs and revenue authorities arising as a matter of law to secure payment
of customs duties in connection with the importation of goods; (i) Liens
on goods or inventory the purchase, shipment or storage price of which is
financed by a documentary letter of credit or bankers’ acceptance issued or
created for the account of the Borrower or any of its Subsidiaries, provided
that such Lien secures only the obligations of the Borrower or such
Subsidiaries in respect of such letter of credit to the extent permitted under Section 10.1;
(j) leases or subleases, licenses or sublicenses granted to others not
interfering in any material respect with the business of the Borrower and its
Subsidiaries, taken as a whole; (k) Liens created in the ordinary course
of business in favor of banks and other financial institutions over credit
balances of any bank accounts of Holdings, the Borrower and the Restricted
Subsidiaries held at such banks or financial institutions, as the case may
be, to facilitate the operation of cash pooling and/or interest set-off
arrangements in respect of such bank accounts in the ordinary course of
business; (l)  any interest or title of a lessor, sublessor, licensor or
sub licensor under leases entered into in the ordinary course of business; and (m) Liens
arising from precautionary Uniform Commercial Code financing statement or
similar filings made in respect of operating leases entered into by the
Borrower or any of its Subsidiaries.

 

“Permitted Sale Leaseback” shall mean the
Sale Leaseback consummated by the Borrower or any of the Restricted
Subsidiaries after the Closing Date with respect to the Borrower’s property
listed on Schedule 1.1(a).

 

“Person” shall mean any individual,
partnership, joint venture, firm, corporation, limited liability company,
association, trust or other enterprise or any Governmental Authority.

 

“Plan” shall mean any multiemployer or
single-employer plan, as defined in Section 4001 of ERISA and subject to
Title IV of ERISA, that is or was within any of the preceding five plan years
maintained or contributed to by (or to which there is or was an obligation to
contribute or to make payments to) the Borrower, a Subsidiary or an ERISA
Affiliate.

 

“Pledge Agreement” shall mean the Pledge
Agreement, dated as of the Closing Date, among Borrower, the other pledgors
party thereto and the Collateral Agent for the benefit of the Secured Parties,
substantially in the form of Exhibit E-2 attached to the 2005 Credit
Agreement, as the same has been or may be amended, supplemented or otherwise
modified from time to time in accordance with the terms thereof and of the
other Credit Documents.

 

“Prepayment Event” shall mean any Asset Sale
Prepayment Event, Recovery Prepayment Event, Debt Incurrence Prepayment Event
or Permitted Sale Leaseback.

 

31

 

 

“Prime Rate” shall mean the rate of interest
per annum publicly announced from time to time by The Bank of New York as its
reference rate in effect at its principal office in New York City.

 

“Pro Forma Adjustment” shall mean, for any
Test Period that includes any of the six consecutive fiscal quarters first
ending following any Permitted Acquisition, with respect to the Acquired EBITDA
of the applicable Acquired Entity or Business or the Consolidated EBITDA of the
Borrower affected by such acquisition, the pro forma increase or decrease in
such Acquired EBITDA or such Consolidated EBITDA, as the case may be, projected
by the Borrower in good faith as a result of reasonably identifiable and
factually supportable cost savings and costs (excluding one-time transition,
transaction and restructuring costs), as the case may be, expected to be
realized during such period by combining the operations of such Acquired Entity
or Business with the operations of the Borrower and its Subsidiaries; provided,
further that any such pro forma increase or decrease to such Acquired
EBITDA or such Consolidated EBITDA, as the case may be, shall be without
duplication for cost savings and costs (excluding one-time transition,
transaction and restructuring costs) actually realized during such period and
already included in such Acquired EBITDA or such Consolidated EBITDA, as the
case may be.

 

“Pro Forma Adjustment Certificate” shall mean
any certificate of an Authorized Officer of the Borrower delivered pursuant to Section 9.1(h) or
setting forth the information described in clause (iv) to Section 9.1(d).

 

“Real Estate” shall have the meaning provided
in Section 9.1(f).

 

“Recovery Event” shall mean (a) any
damage to, destruction of or other casualty or loss involving any property or
asset or (b) any seizure, condemnation, confiscation or taking under the
power of eminent domain of, or any requisition of title or use of or relating
to, or any similar event in respect of, any property or asset.

 

“Recovery Prepayment Event” shall mean the
receipt of cash proceeds with respect to any settlement or payment in
connection with any Recovery Event in respect of any property or asset of the
Borrower or any Restricted Subsidiary; provided that the term “Recovery
Prepayment Event” shall not include any Asset Sale Prepayment Event or any
Permitted Sale Leaseback.

 

“Reference Lender” shall mean The Bank of New
York.

 

“Refinanced Senior Unsecured Subordinated Notes”
shall have the meaning provided in Section 10.1(i)(i).

 

“Refinanced Term Loans” shall have the
meaning provided in Section 13.1.

 

“Refinancing” shall have the meaning provided
in the recitals to this Agreement.

 

“Register” shall have the meaning provided in
Section 13.6(b)(iv).

 

32

 

 

“Regulated Subsidiaries” shall mean the
Broker-Dealer Regulated Subsidiary, the HUD-Regulated Subsidiary and any
OCC-Regulated Subsidiary.

 

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

 

“Regulation U” shall mean Regulation U of the
Board as from time to time in effect and any successor to all or a portion
thereof establishing margin requirements.

 

“Regulation X” shall mean Regulation X of the
Board as from time to time in effect and any successor to all or a portion
thereof establishing margin requirements.

 

“Reinvestment Period” shall mean, with
respect to any Asset Sale Prepayment Event, Permitted Sale Leaseback or
Recovery Prepayment Event, the day which is fifteen months after the receipt of
Net Cash Proceeds of such Asset Sale Prepayment Event, Permitted Sale Leaseback
or Recovery Prepayment Event.

 

“Related Parties” shall mean, with respect to
any specified Person, such Person’s Affiliates and the directors, officers,
employees, agents, trustees, advisors of such Person and any Person that
possesses, directly or indirectly, the power to direct or cause the direction
of the management or policies of such Person, whether through the ability to
exercise voting power, by contract or otherwise.

 

“Replacement Term Loans” shall have the
meaning provided in Section 13.1.

 

“Reportable Event” shall mean an event
described in Section 4043 of ERISA and the regulations thereunder.

 

“Required Cash” shall mean the sum of Broker-Dealer Required
Cash, OCC-Regulated Subsidiary Required Cash and HUD-Regulated Subsidiary
Required Cash; provided, that to the extent, after the Closing Date, the
Borrower or any of its Subsidiaries shall acquire or create any new “regulated”
Domestic Subsidiary that shall not be required to guaranty the Obligations
pursuant to the Guaranty, then the definition of “Required Cash” shall also
include the required cash of any such Person, which required cash shall be
calculated in a substantially equivalent manner as Broker-Dealer Required Cash,
OCC-Regulated Subsidiary Required Cash and HUD-Regulated Subsidiary Required
Cash have been calculated and otherwise in a manner mutually agreed between the
Borrower and the Administrative Agent.

 

“Required Lenders” shall mean, at any date,
Non-Defaulting Lenders having or holding a majority of the sum of (a) the
outstanding principal amount of the Tranche D Term Loans in the aggregate at
such date, (b)(i) until the Increased Amount Date for any Series, the
Adjusted Total New Term Loan Commitment for such Series and (ii) thereafter,
the outstanding principal amount of the New Term Loans of such Series in
the aggregate at such date and (c)(i) the Adjusted Total Revolving Credit
Commitment at such date or (ii) if the Total Revolving Credit Commitment
has been terminated or for the purposes of acceleration pursuant

 

33

 

to Section 11, the
outstanding principal amount of the Revolving Credit Loans and Letter of Credit
Exposures in the aggregate at such date.

 

“Required Reimbursement Date” shall have the
meaning provided in Section 3.4(a).

 

“Required Revolving Credit Lenders” shall
mean, at any date, Non-Defaulting Lenders having or holding a majority of (a) the
Adjusted Total Revolving Credit Commitment at such date or (b) if the
Total Revolving Credit Commitment has been terminated or for the purposes of
acceleration pursuant to Section 11, the outstanding amount of the
Revolving Credit Exposures in the aggregate at such date.

 

“Required Term Loan Lenders” shall mean, at
any date, Non-Defaulting Lenders having or holding a majority of the
outstanding principal amount of the Term Loans in the aggregate at such date.

 

“Restoration Certification” shall mean, with
respect to any Recovery Prepayment Event, a certification made by an Authorized
Officer of the Borrower or a Restricted Subsidiary, as applicable, to the
Administrative Agent prior to the end of the Reinvestment Period certifying (a) that
the Borrower or such Restricted Subsidiary intends to use the proceeds received
in connection with such Recovery Prepayment Event to repair, restore or replace
the property or assets in respect of which such Recovery Prepayment Event
occurred, (b) the approximate costs of completion of such repair,
restoration or replacement and (c) that such repair, restoration or
replacement will be completed by the later of (1) fifteen months after the
date on which Net Cash Proceeds were received with respect to such Recovery
Prepayment Event and (2) 180 days after delivery of such Restoration
Certification.

 

“Restricted Domestic Subsidiary” shall mean
each Restricted Subsidiary that is also a Domestic Subsidiary.

 

“Restricted Foreign Subsidiary” shall mean
each Restricted Subsidiary that is also a Foreign Subsidiary.

 

“Restricted Subsidiary” shall mean any
Subsidiary of the Borrower other than an Unrestricted Subsidiary.

 

“Revolving Credit Commitment” shall mean, (a) with
respect to each Lender that was a Lender on the Closing Date, the amount set
forth opposite such Lender’s name on Schedule 1.1(b) as such Lender’s “Revolving
Credit Commitment”, (b) in the case of any Lender that becomes a Lender
after the date hereof, the amount specified as such Lender’s “Revolving Credit
Commitment” in the Assignment and Acceptance pursuant to which such Lender
assumed a portion of the Total Revolving Credit Commitment and (c) in the
case of any Lender that increases its Revolving Credit Commitment or becomes a
Revolving Credit Increase Lender, in each case pursuant to Section 2.14,
the amount specified in such Lender’s Joinder Agreement, in each case as the
same may be changed from time to time pursuant to terms hereof.  The aggregate amount of the Revolving Credit
Commitments as of the Closing Date was $100,000,000.

 

34

 

 

“Revolving Credit Commitment Percentage”
shall mean at any time, for each Lender, the percentage obtained by dividing (a) such
Lender’s Revolving Credit Commitment by (b) the aggregate amount of the
Revolving Credit Commitments; provided that at any time when the Total
Revolving Credit Commitment shall have been terminated, each Lender’s Revolving
Credit Commitment Percentage shall be its Revolving Credit Commitment
Percentage as in effect immediately prior to such termination.

 

“Revolving Credit Exposure” shall mean, with
respect to any Lender at any time, the sum of (a) the aggregate principal
amount of the Revolving Credit Loans of such Lender then outstanding and (b) such
Lender’s Letter of Credit Exposure at such time.

 

“Revolving Credit Facility” shall have the
meaning provided in the recitals to this Agreement.

 

“Revolving Credit Increase Lender” shall have
the meaning provided in Section 2.14(b).

 

“Revolving Credit Loan” shall have the
meaning provided in Section 2.1(c).

 

“Revolving Credit Increase” shall have the
meaning provided in Section 2.14(a).

 

“Revolving Credit Maturity Date” shall mean
the date that is six years after the Closing Date, or, if such date is not a Business
Day, the next preceding Business Day.

 

“Sale Leaseback” shall mean any transaction
or series of related transactions pursuant to which the Borrower or any of the
Restricted Subsidiaries (a) sells, transfers or otherwise disposes of any
property, real or personal, whether now owned or hereafter acquired, and (b) as
part of such transaction, thereafter rents or leases such property or other
property that it intends to use for substantially the same purpose or purposes
as the property being sold, transferred or disposed of.

 

“S&P” shall mean Standard & Poor’s
Ratings Services or any successor by merger or consolidation to its business.

 

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

 

“Second Restatement Engagement Letter” shall
mean that certain Repricing Engagement Letter dated as of May 17, 2007
between the Borrower and GSCP.

 

“Second Restatement Reaffirmation Agreement”
shall mean that certain Second Restatement Reaffirmation Agreement, dated as of
the Effective Date, by and among the Credit Parties, the Administrative Agent
and the Collateral Agent, pursuant to which the Credit Parties acknowledged and
confirmed the full force and effect of the Security Documents and the Guarantee
with respect to this Agreement and the Obligations.

 

35

 

“Section 9.1 Financials” shall mean the
financial statements delivered, or required to be delivered, pursuant to Section 9.1(a) or
(b) together with the accompanying officer’s certificate delivered, or
required to be delivered, pursuant to Section 9.1(e).

 

“Secured Parties” shall have the meaning
assigned to such term in the Security Agreement.

 

“Security Agreement” shall mean the Security
Agreement, dated as of the Closing Date, among Borrower, the other grantors
party thereto and the Collateral Agent for the benefit of the Secured Parties,
substantially in the form of Exhibit E-1 attached to the 2005 Credit
Agreement, as the same has been or may be amended, supplemented or otherwise
modified from time to time in accordance with the terms thereof and of the
other Credit Documents.

 

“Security Documents” shall mean,
collectively, the Security Agreement, the Pledge Agreement, the First
Reaffirmation Agreement, the Second Restatement Reaffirmation Agreement the
Mortgages and each other security agreement or other instrument or document
executed and delivered pursuant to Section 9.11, 9.12 or 9.14 or pursuant
to any of the Security Documents to secure any of the Obligations.

 

“Segregated Cash” shall mean, as of any date of determination,
all cash and “qualified” cash equivalents segregated on the balance sheet of
the Broker-Dealer Regulated Subsidiary as of such date under Rule 15c3-3
of the Exchange Act.

 

“Senior Unsecured Subordinated Note Indenture”
shall mean the Indenture, dated as of December 28, 2005, among the
Borrower, each of the guarantors party thereto and Wells Fargo Bank, N.A., as
Trustee, pursuant to which the Senior Unsecured Subordinated Notes are issued,
as the same may be amended, supplemented or otherwise modified from time to
time to the extent permitted by Section 10.7(c).

 

“Senior Unsecured Subordinated Note Maturity Date”
shall mean December 28, 2015.

 

“Senior Unsecured Subordinated Notes” shall
have the meaning provided in the recitals to this Agreement.

 

“Series” shall have the meaning provided in Section 2.14(a).

 

“Sold Entity or Business” shall have the
meaning provided in the definition of the term “Consolidated EBITDA”.

 

“Solvent” shall mean, with respect to any
Person, at any date, that (a) the sum of such Person’s debt (including
contingent liabilities) does not exceed the present fair saleable value of such
Person’s present assets, (b) such Person’s capital is not unreasonably
small in relation to its business as contemplated on such date, (c) such
Person has not incurred and does not intend to incur, or believe that it will
incur, debts including current obligations beyond its ability to pay such debts
as they become due (whether at maturity or otherwise), and (d) such Person
is “solvent” within the meaning given that term and similar terms under
applicable laws relating to fraudulent transfers and conveyances.  For purposes of this definition, the amount
of

 

36

 

any contingent liability at
any time shall be computed as the amount that, in light of all of the facts and
circumstances existing at such time, represents the amount that can reasonably
be expected to become an actual or matured liability (irrespective of whether such
contingent liabilities meet the criteria for accrual under Statement of
Financial Accounting Standard No. 5).

 

“Specified Obligations”
shall mean Obligations consisting of (a) the principal of and interest on
Loans and (b) reimbursement obligations in respect of Letters of Credit.

 

“Specified Subsidiary”
shall mean, at any date of determination, (a) any Material Subsidiary or (b) any
Unrestricted Subsidiary (i) whose total assets at the last day of the Test
Period ending on the last day of the most recent fiscal period for which Section 9.1
Financials have been delivered were equal to or greater than 15% of the
consolidated total assets of the Borrower and its Subsidiaries at such date or (ii) whose
gross revenues for such Test Period were equal to or greater than 15% of the
consolidated gross revenues of the Borrower and its Subsidiaries for such
period, in each case determined in accordance with GAAP.

 

“Sponsors” shall mean, collectively, Hellman &
Friedman LLC and Texas Pacific Group and/or their respective Affiliates.

 

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

 

“Status” shall mean, as to the Borrower as of
any date, the existence of Level I Status or Level II Status, as the case
may be, on such date.  Changes in Status
resulting from changes in Consolidated Total Debt to Consolidated EBITDA Ratio
shall become effective as of the first Business Day following the delivery of
the Section 9.1 Financials.

 

“Statutory Reserve Rate” shall mean for any
day as applied to any Eurodollar Loan, a fraction (expressed as a decimal), the
numerator of which is the number one and the denominator of which is the number
one minus the aggregate of the maximum reserve percentages that are in effect
on that day (including any marginal, special, emergency or supplemental
reserves), expressed as a decimal, as prescribed by the Board and to which the
Administrative Agent is subject, for Eurocurrency funding (currently referred
to as “Eurocurrency Liabilities” in Regulation D of the Board).  Such reserve percentages shall include those
imposed pursuant to such Regulation D. 
Eurodollar Loans shall be deemed to constitute Eurocurrency funding and
to be subject to such reserve requirements without benefit of or credit for
proration, exemptions or offsets that may be available from time to time to any
Lender under such Regulation D or any comparable regulation.  The Statutory Reserve Rate shall be adjusted
automatically on and as of the effective date of any change in any reserve
percentage.

 

“Subsidiary” of any Person shall mean and
include (a) 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 directly or indirectly

 

37

 

 

through Subsidiaries and (b) any
partnership, association, joint venture or other entity in which such Person
directly or indirectly through Subsidiaries has more than a 50% equity interest
at the time.  Unless otherwise expressly
provided, all references herein to a “Subsidiary” shall mean a Subsidiary of
the Borrower.

 

“Successor Borrower” shall have the meaning
provided in Section 10.3(a).

 

“Swingline Commitment” shall mean
$50,000,000.

 

“Swingline Lender” shall mean MSSF in its
capacity as lender of Swingline Loans hereunder, or such other financial
institution who, after the date hereof, shall agree to act in the capacity of lender
of Swingline Loans hereunder.

 

“Swingline Loan” shall have the meaning
provided in Section 2.1(e)(i).

 

“Swingline Maturity Date” shall mean, with
respect to any Swingline Loan, the date that is five Business Days prior to the
Revolving Credit Maturity Date.

 

“Syndication Agent” shall mean GSCP, together
with its affiliates, as the syndication agent for the Lenders under this
Agreement and the other Credit Documents.

 

 “Term Loan”
shall mean a Tranche D Term Loan or a New Term Loan, as applicable.

 

“Test Period” shall mean, for any
determination under this Agreement, the four consecutive fiscal quarters of the
Borrower then last ended.

 

“Total Commitment” shall mean the sum of the
Total Tranche D Term Loan Commitment, the Total New Term Loan Commitment and
the Total Revolving Credit Commitment.

 

“Total Credit Exposure” shall mean, at any
date, the sum of the Total Commitment at such date and the outstanding
principal amount of all Term Loans at such date.

 

“Total New Term Loan Commitment” shall mean
the sum of the New Term Loan Commitments of all the New Term Lenders.

 

“Total Revolving Credit Commitment” shall
mean the sum of the Revolving Credit Commitments of all the Lenders.

 

“Total Tranche D Term Loan Commitment” shall
mean the sum of the Tranche D Term Loan Commitments of all the Lenders.

 

“Tranche D Term Lender” shall mean each
Lender that has a Tranche D Term Loan Commitment or holds a Tranche D Term
Loan.

 

“Tranche D Term Loan” shall have the meaning
provided in Section 2.1(a).

 

38

 

 

“Tranche D Term Loan Commitment” shall mean, (a) in
the case of each Lender that is a Lender on the date hereof, the amount set
forth opposite such Lender’s name on Schedule 1.1(b) hereto or, in
the case if any Continuing Lenders, on the schedule to its Lender Consent
Letter, in either case as such Lender’s “Tranche D Term Loan Commitment” and (b) in
the case of any Lender that becomes a Lender after the date hereof, the amount
specified as such Lender’s “Tranche D Term Loan Commitment” in the Assignment
and Acceptance pursuant to which such Lender assumed a portion of the Total
Tranche D Term Loan Commitment, in each case as the same may be changed from
time to time pursuant to the terms hereof. 
The aggregate amount of the Tranche D Term Loan Commitments as of the
Effective Date is $842,389,062.50.

 

“Tranche D Term Loan Facility” shall have the
meaning provided in the recitals to this Agreement.

 

“Tranche D Term Loan
Maturity Date” shall mean the date that is seven years and six months after
the Closing Date; provided, that if such date is not a Business Day, the
“Tranche D Term Loan Maturity Date” will be the next preceding Business Day.

 

“Tranche D Term Loan Repayment Amount” shall
have the meaning provided in Section 2.5(b).

 

“Tranche D Term Loan Repayment Date” shall
have the meaning provided in Section 2.5(b).

 

 “Transferee”
shall have the meaning provided in Section 13.6(e).

 

“Type” shall mean (a) as to any Term
Loan, its nature as an ABR Loan or a Eurodollar Term Loan, and (b) as
to any Revolving Credit Loan, its nature as an ABR Loan or a Eurodollar
Revolving Credit Loan.

 

“Unfunded Current Liability” of any Plan
shall mean the amount, if any, by which the present value of the accrued
benefits under the Plan as of the close of its most recent plan year,
determined in accordance with Statement of Financial Accounting Standards No. 87
as in effect on the date hereof, based upon the actuarial assumptions that
would be used by the Plan’s actuary in a termination of the Plan, exceeds the
fair market value of the assets allocable thereto.

 

“Unpaid Drawing” shall have the meaning
provided in Section 3.4(a).

 

“Unrestricted Subsidiary” shall mean (a) any
Subsidiary of Holdings or the Borrower that is formed or acquired after the Closing
Date and is designated as an Unrestricted Subsidiary by Holdings or the
Borrower at such time (or promptly thereafter) in a written notice to the
Administrative Agent, (b) any Restricted Subsidiary subsequently
re-designated as an Unrestricted Subsidiary by Holdings or the Borrower in a
written notice to the Administrative Agent; provided, that (x) such
designation or re-designation shall be deemed to be an investment (and thus
must be made in accordance with Section 10.5) on the date of such designation
or re-designation in an Unrestricted Subsidiary in an amount equal to the sum
of (i) Holdings’ or the Borrower’s direct or indirect equity ownership
percentage of the net worth of such designated or re-designated Subsidiary
immediately prior to such designation or re-designation (such net worth to be
calculated without regard to any guarantee provided by such designated or
re-designated

 

39

 

Subsidiary) and (ii) the
aggregate principal amount of any Indebtedness owed by such designated or
re-designated Subsidiary to Holdings or the Borrower or any other Restricted
Subsidiary immediately prior to such designation or re-designation, all
calculated, except as set forth in the parenthetical to clause (i), on a
consolidated basis in accordance with GAAP and (y) no Default or Event of
Default would result from such designation or re-designation, and (c) each
Subsidiary of an Unrestricted Subsidiary; provided, however, that
at the time of any written designation or re-designation by Holdings, or the
Borrower to the Administrative Agent that any Unrestricted Subsidiary shall no
longer constitute an Unrestricted Subsidiary, such Unrestricted Subsidiary
shall cease to be an Unrestricted Subsidiary to the extent no Default or Event
of Default would result from such designation or re-designation.

 

“UVEST Acquisition” shall mean the
acquisition by Borrower or a (Restricted Subsidiary thereof) of all of the
outstanding Capital Stock of UVEST Financial Services Group Inc.

 

“Voting Stock” shall mean, with respect to
any Person, shares of such Person’s Capital Stock having the right to vote for
the election of directors of such Person under ordinary circumstances.

 

“Warehouse Line of Credit” shall mean any
warehouse lines of credit established consistent with past business practices
and used by the Borrower and its Subsidiaries in the ordinary course of
business to fund or support their mortgage lending business and any replacement
lines established on substantially similar terms and conditions.

 

(a)                           The
words “hereof,” “herein” and “hereunder” and words of similar import when used
in this Agreement shall refer to this Agreement as a whole and not to any
particular provision of this Agreement, and Section references are to Sections
of this Agreement unless otherwise specified. 
The words “include,” “includes” and “including” shall be deemed to be
followed by the phrase “without limitation”.

 

(b)                           Unless
otherwise indicated, any reference to any agreement or instrument will be deemed
to include a reference to that agreement or instrument as assigned, amended,
supplemented, amended and restated, or otherwise modified and in effect from
time to time or replaced in accordance with the terms of this Agreement (if
applicable).

 

SECTION 2.           Amount and Terms of Credit
Facilities

 

2.1           Loans.  (a)  Subject to and upon terms and
conditions herein set forth including Section 2.4(d), each Tranche D Term
Lender severally agrees to make a loan or loans (each, a “Tranche D Term
Loan”) to the Borrower, which Tranche D Term Loans (i) shall not
exceed, for any such Lender, the Tranche D Term Loan Commitment of such Tranche
D Term Lender, (ii) shall not exceed, in the aggregate, the Total Tranche
D Term Loan Commitment, (iii) shall be made on the Effective Date, (iv) may
at the option of the Borrower be incurred and maintained as, and/or converted
into, ABR Loans or Eurodollar Tranche D Term Loans; provided, that all
such Tranche D Term Loans made by each of the Tranche D Term Lenders pursuant
to the same Borrowing shall, unless otherwise specifically provided herein,
consist entirely of Tranche D Term Loans of the same Type and (v) may be
repaid or prepaid in

 

40

accordance
with the provisions hereof, but once repaid or prepaid may not be
reborrowed.  On the Tranche D Term Loan
Maturity Date, all outstanding Tranche D Term Loans shall be repaid in full.

 

(b)           Subject to
and upon the terms and conditions herein set forth including Section 2.4(d),
each Lender having a Revolving Credit Commitment severally agrees to make a
loan or loans (each, a “Revolving Credit Loan”) to the Borrower, which
Revolving Credit Loans (i) shall not exceed, for any such Lender, the
Revolving Credit Commitment of such Lender, (ii) shall not, after giving
effect thereto and to the application of the proceeds thereof, result in such
Lender’s Revolving Credit Exposure at such time exceeding such Lender’s
Revolving Credit Commitment at such time, (iii) shall not, after giving
effect thereto and to the application of the proceeds thereof, at any time
result in the aggregate amount of all Lenders’ Revolving Credit Exposures plus
the aggregate principal amount outstanding of all Swingline Loans at such time
exceeding the Total Revolving Credit Commitment then in effect, (iv) shall
be made at any time and from time to time after the Closing Date and prior to
the Revolving Credit Maturity Date, (v) may at the option of the Borrower
be incurred and maintained as, and/or converted into, ABR Loans or Eurodollar
Revolving Credit Loans, provided that all Revolving Credit Loans made by each
of the Lenders pursuant to the same Borrowing shall, unless otherwise
specifically provided herein, consist entirely of Revolving Credit Loans of the
same Type and (vi) may be repaid and reborrowed in accordance with the
provisions hereof.  On the Revolving
Credit Maturity Date, all outstanding Revolving Credit Loans shall be repaid in
full. Any Revolving Loan outstanding under the Original Credit Agreement on the
Effective Date shall continue to be outstanding and be deemed to be Revolving
Loans made hereunder subject the terms and conditions hereof.

 

(c)           Each
Lender may at its option make any Eurodollar Loan by causing any domestic or
foreign branch or Affiliate of such Lender to make such Loan; provided,
that (i) any exercise of such option shall not affect the obligation of
the Borrower, as the case may be, to repay such Loan and (ii) in
exercising such option, such Lender shall use its reasonable efforts to
minimize any increased costs to the Borrower resulting therefrom (which
obligation of the Lender shall not require it to take, or refrain from taking,
actions that it determines would result in increased costs for which it will
not be compensated hereunder or that it determines would be otherwise
disadvantageous to it and in the event of such request for costs for which
compensation is provided under this Agreement, the provisions of Section 2.10
shall apply).

 

(d)           (i)  Subject
to and upon the terms and conditions herein set forth, the Swingline Lender in
its individual capacity agrees, at any time and from time to time on and after
the Closing Date and prior to the Swingline Maturity Date, to make a loan or
loans (each, a “Swingline Loan”) to the Borrower, which Swingline Loans (A) shall
be ABR Loans, (B) shall have the benefit of the provisions of Section 2.1(e)(ii),
(C) shall not exceed at any time outstanding the Swingline Commitment, (D) shall
not, after giving effect thereto and to the application of the proceeds
thereof, result at any time in the aggregate amount of all Lenders’ Revolving
Credit Exposures plus the aggregate principal amount outstanding of all
Swingline Loans at such time exceeding the Total Revolving Credit Commitment
then in effect and (E) may be repaid and reborrowed in accordance with the
provisions hereof.  On the Swingline
Maturity Date, all outstanding Swingline Loans shall be repaid in full.  The Swingline Lender shall not make any
Swingline Loan after receiving a written notice from the Borrower or any

 

41

 

Lender
stating that a Default or an Event of Default exists and is continuing until
such time as the Swingline Lender shall have received written notice of (x) rescission
of all such notices from the party or parties originally delivering such notice
or (y) the waiver of such Default or Event of Default in accordance with
the provisions of Section 13.1.  Any
Swingline Loan outstanding under the Original Credit Agreement on the Effective
Date shall continue to be outstanding and be deemed to be Swingline Loans made
hereunder, subject to the terms and conditions hereunder.

 

(e)                                  (ii)                                  On any Business Day, the Swingline Lender may, in its sole
discretion, give notice to the Lenders with Revolving Credit Commitments, with
a copy to the Borrower, that all then-outstanding Swingline Loans shall be
funded with a Borrowing of Revolving Credit Loans, in which case Revolving
Credit Loans constituting ABR Loans (each such Borrowing, a “Mandatory
Borrowing”) shall be made on the immediately succeeding Business Day by all
Lenders with Revolving Credit Commitments pro  rata based on each
such Lender’s Revolving Credit Commitment Percentage, and the proceeds thereof
shall be applied directly to the Swingline Lender to repay the Swingline Lender
for such outstanding Swingline Loans. 
Each Lender with a Revolving Credit Commitment hereby irrevocably agrees
to make such Revolving Credit 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 to it in writing by the Swingline
Lender notwithstanding (i) that the amount of the Mandatory Borrowing may
not comply with the minimum amount for each Borrowing specified in Section 2.2,
(ii) whether any conditions specified in Section 7 are then
satisfied, (iii) whether a Default or an Event of Default has occurred and
is continuing, (iv) the date of such Mandatory Borrowing or (v) any
reduction in the Total Commitment after any such Swingline Loans were
made.  In the event that, in the sole
judgment of the Swingline Lender, any Mandatory Borrowing cannot for any reason
be made on the date otherwise required above (including as a result of the
commencement of a proceeding under the Bankruptcy Code in respect of the
Borrower), each Lender with a Revolving Credit Commitment hereby agrees that it
shall forthwith purchase from the Swingline Lender (without recourse or warranty)
such participation of the outstanding Swingline Loans as shall be necessary to
cause each such Lender to share in such Swingline Loans ratably based upon
their respective Revolving Credit Commitment Percentages, provided that
all principal and interest payable on such Swingline Loans shall be for the
account of the Swingline Lender until the date the respective participation is
purchased and, to the extent attributable to the purchased participation, shall
be payable to the Lender purchasing same from and after such date of purchase.

 

2.2                                 Minimum Amount
of Each Borrowing; Maximum Number of Borrowings.  The aggregate principal amount of each
Borrowing of Term Loans or Revolving Credit Loans shall be in a multiple of
$1,000,000 and Swingline Loans shall be in a multiple of $100,000 and, in each
case, shall not be less than the Minimum Borrowing Amount with respect thereto
(except that Mandatory Borrowings shall be made in the amounts required by Section 2.1(e)).  More than one Borrowing may be incurred on any
date, provided that at no time shall there be outstanding more than 20
Borrowings of Eurodollar Loans under this Agreement.

 

2.3                                 Notice of
Borrowing.  (a)  The
Borrower shall give the Administrative Agent at the Administrative Agent’s
Office (i) prior to 1:00 p.m. (New York time) at least three Business
Days’ prior written notice (or telephonic notice promptly confirmed

 

42

 

in writing)
of each Borrowing of Term Loans if all or any of such Term Loans are to be
initially Eurodollar Loans, and (ii) prior written notice (or telephonic
notice promptly confirmed in writing) prior to 10:00 a.m. (New York time)
on the date of each Borrowing of Term Loans if all such Term Loans are to be
ABR Loans.  Such notice (together with
each notice of a Borrowing of Revolving Credit Loans pursuant to Section 2.3(b) and
each notice of a Borrowing of Swingline Loans pursuant to Section 2.3(d),
a “Notice of Borrowing”) shall specify (i) the aggregate principal
amount of the Term Loans to be made, (ii) the date of the Borrowing (which
shall be, in the case of Tranche D Term Loans, the Effective Date and, in the
case of each Series of New Term Loans, the Increased Amount Date in
respect of such Series) and (iii) whether the Term Loans shall consist of
ABR Loans and/or Eurodollar Term Loans and, if the Term Loans are to include
Eurodollar Term Loans, the Interest Period to be initially applicable
thereto.  The Administrative Agent shall
promptly give each Lender written notice (or telephonic notice promptly
confirmed in writing) of each proposed Borrowing of Term Loans, of such Lender’s
proportionate share thereof and of the other matters covered by the related
Notice of Borrowing.

 

(b)           Whenever
the Borrower desires to incur Revolving Credit Loans hereunder (other than
Mandatory Borrowings or borrowings to repay Unpaid Drawings under Letters of
Credit), it shall give the Administrative Agent at the Administrative Agent’s
Office, (i) prior to 1:00 p.m. (New York Time) at least three Business
Days’ prior written notice (or telephonic notice promptly confirmed in writing)
of each Borrowing of Eurodollar Revolving Credit Loans, and (ii) prior to
1:00 p.m. (New York time) at least one Business Day’s prior written notice
(or telephonic notice promptly confirmed in writing) of each Borrowing of
Revolving Credit Loans that are to be ABR Loans.  Each such Notice of Borrowing, except as
otherwise expressly provided in Section 2.10, shall specify (i) the
aggregate principal amount of the Revolving Credit Loans to be made pursuant to
such Borrowing, (ii) the date of Borrowing (which shall be a Business Day)
and (iii) whether the respective Borrowing shall consist of ABR Loans or
Eurodollar Revolving Credit Loans and, if Eurodollar Revolving Credit Loans,
the Interest Period to be initially applicable thereto.  The Administrative Agent shall promptly give
each Lender written notice (or telephonic notice promptly confirmed in writing)
of each proposed Borrowing of Revolving Credit Loans, of such Lender’s proportionate
share thereof and of the other matters covered by the related Notice of
Borrowing.

 

(c)           Whenever
the Borrower desires to incur Swingline Loans hereunder, it shall give the
Administrative Agent written notice (or telephonic notice promptly confirmed in
writing) of each Borrowing of Swingline Loans prior to 3:00 p.m. (New York
time) or such later time as is agreed by the Swingline Lender on the date of
such Borrowing.  Each such notice shall
be irrevocable and shall specify (i) the aggregate principal amount of the
Swingline Loans to be made pursuant to such Borrowing and (ii) the date of
Borrowing (which shall be a Business Day). 
The Administrative Agent shall promptly give the Swingline Lender
written notice (or telephonic notice promptly confirmed in writing) of each
proposed Borrowing of Swingline Loans and of the other matters covered by the
related Notice of Borrowing.

 

(d)           Mandatory
Borrowings shall be made upon the notice specified in Section 2.1(e)(ii),
with the Borrower irrevocably agreeing, by its incurrence of any Swingline
Loan, to the making of Mandatory Borrowings as set forth in such Section.

 

 

43

 

(e)           Borrowings
of Revolving Credit Loans to reimburse Unpaid Drawings under Letters of Credit
shall be made upon the notice specified in Section 3.4(a).

 

(f)            Without
in any way limiting the obligation of the Borrower to confirm in writing any
notice it may give hereunder by telephone, the Administrative Agent may act
prior to receipt of written confirmation without liability upon the basis of
such telephonic notice believed by the Administrative Agent in good faith to be
from an Authorized Officer of the Borrower. 
In each such case, the Borrower hereby waives the right to dispute the
Administrative Agent’s record of the terms of any such telephonic notice.

 

(g)           Any
Continuing Lender that has converted some but not all of its Original Term
Loans on the Effective Date shall be indemnified by the Borrower, with respect
to the portion of the Original Term Loans not converted to Tranche D Term
Loans, as provided in Section 2.11 of the Original Credit Agreement, which
indemnity amounts shall be paid to each such Continuing Lender on the Effective
Date; provided, however, if a Continuing Lender converts all of
its Original Term Loans to an equivalent amount of Tranche D Term Loans on the
Effective Date, the indemnification provided in Section 2.11 of the
Original Credit Agreement shall not apply to such Lender on the Effective Date.

 

2.4                                                                                 Disbursement of Funds.  (a)  No later than 2:00 p.m.
(New York time) on the date specified in each Notice of Borrowing (including
Mandatory Borrowings), each Lender will make available its pro  rata
portion, if any, of each Borrowing requested to be made on such date in the
manner provided below; provided, that all Swingline Loans shall be made
available in the full amount thereof by the Swingline Lender no later than 3:00 p.m.
(New York time) on the date requested.

 

(b)           Each
Lender shall make available all amounts it is to fund to the Borrower under any
Borrowing in immediately available funds to the Administrative Agent at the
Administrative Agent’s Office and the Administrative Agent will (except in the
case of Mandatory Borrowings and Borrowings to repay Unpaid Drawings under
Revolving Credit Loans) make available to the Borrower, by depositing to an
account designated by the Borrower to the Administrative Agent in writing, the
aggregate of the amounts so made available in Dollars.  Unless the Administrative Agent shall have
been notified by any Lender prior to the date of any such Borrowing that such
Lender does not intend to make available to the Administrative Agent its
portion of the Borrowing or Borrowings 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, in reliance upon such assumption, may (in its sole discretion and
without any obligation to do so) make available to the Borrower, as the case
may be, a corresponding amount.  If such
corresponding amount is not in fact made available to the Administrative Agent
by such Lender and the Administrative Agent has made available same to the
Borrower, the Administrative Agent shall be entitled to recover such
corresponding amount 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 shall also be entitled to recover 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

 

44

 

made
available by the Administrative Agent to the Borrower, to the date such
corresponding amount is recovered by the Administrative Agent, at a rate per
annum equal to (i) if paid by such Lender, the Federal Funds Effective
Rate or (ii) if paid by the Borrower, the then-applicable rate of interest
or fees, calculated in accordance with Section 2.8, for the respective
Loans.

 

(c)           Nothing in
this Section 2.4 shall be deemed to relieve any Lender from its obligation
to fulfill its commitments hereunder or to prejudice any rights that the
Borrower may have against any Lender as a result of any default by such Lender
hereunder (it being understood, however, that no Lender shall be responsible
for the failure of any other Lender to fulfill its commitments hereunder).

 

(d)           Notwithstanding
anything in this Section 2.4 to the contrary, at the option of each
Continuing Lender, all or a portion of the Original Term Loans of such
Continuing Lender may be converted to Tranche D Term Loans and applied toward
satisfaction of its funding requirements set forth in clauses (a) and (b) above.

 

2.5                                                                                 Repayment of Loans; Evidence of Debt.  (a)  The
Borrower shall repay to the Administrative Agent, for the benefit of the
applicable Lenders, (i) on the Tranche D Term Loan Maturity Date, all then
outstanding Tranche D Term Loans, (ii) on the New Term Loan Maturity Date
for New Term Loans of any Series, any then outstanding New Term Loans of such
Series, (iii) on the Revolving Credit Maturity Date, all then outstanding
Revolving Credit Loans and (iv) on the Swingline Maturity Date, all then
outstanding Swingline Loans.

 

(b)           The
Borrower shall repay to the Administrative Agent, for the benefit of the
Lenders of Tranche D Term Loans, on each date set forth below (each, a “Tranche
D Term Loan Repayment Date”), a principal amount of the Tranche D Term
Loans equal to (x) the principal amount of Tranche D Term Loans
outstanding immediately after the Borrowing of Tranche D Term Loans on the
Effective Date (as may be reduced by, and after giving effect to, any optional
and mandatory prepayments made in accordance with the terms hereof) multiplied
by (y) the percentage set forth below opposite such Tranche D Term Loan
Repayment Date (each, a “Tranche D Term Loan Repayment Amount”):

 

	
  Tranche D Term Loan Repayment
  Date

  	
   

  	
  Tranche D Term Loan Repayment Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  June 30, 2007

  	
   

  	
  0.25

  	
  %

  	
   

  
	
  September 30, 2007

  	
   

  	
  0.25

  	
  %

  	
   

  
	
  December 31, 2007

  	
   

  	
  0.25

  	
  %

  	
   

  
	
  March 31, 2008

  	
   

  	
  0.25

  	
  %

  	
   

  
	
  June 30, 2008

  	
   

  	
  0.25

  	
  %

  	
   

  
	
  September 30, 2008

  	
   

  	
  0.25

  	
  %

  	
   

  
	
  December 31, 2008

  	
   

  	
  0.25

  	
  %

  	
   

  
	
  March 31, 2009

  	
   

  	
  0.25

  	
  %

  	
   

  
	
  June 30, 2009

  	
   

  	
  0.25

  	
  %

  	
   

  
	
  September 30, 2009

  	
   

  	
  0.25

  	
  %

  	
   

  
	
  December 31, 2009

  	
   

  	
  0.25

  	
  %

  	
   

  
	
  March 31, 2010

  	
   

  	
  0.25

  	
  %

  	
   

  

 

 

45

 

 

	
  Tranche D Term Loan Repayment
  Date

  	
   

  	
  Tranche D Term Loan Repayment Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  June 30, 2010

  	
   

  	
  0.25

  	
  %

  	
   

  
	
  September 30, 2010

  	
   

  	
  0.25

  	
  %

  	
   

  
	
  December 31, 2010

  	
   

  	
  0.25

  	
  %

  	
   

  
	
  March 31, 2011

  	
   

  	
  0.25

  	
  %

  	
   

  
	
  June 30, 2011

  	
   

  	
  0.25

  	
  %

  	
   

  
	
  September 30, 2011

  	
   

  	
  0.25

  	
  %

  	
   

  
	
  December 31, 2011

  	
   

  	
  0.25

  	
  %

  	
   

  
	
  March 31, 2012

  	
   

  	
  0.25

  	
  %

  	
   

  
	
  June 30, 2012

  	
   

  	
  0.25

  	
  %

  	
   

  
	
  September 30, 2012

  	
   

  	
  0.25

  	
  %

  	
   

  
	
  December 31, 2012

  	
   

  	
  0.25

  	
  %

  	
   

  
	
  March 31, 2013

  	
   

  	
  0.25

  	
  %

  	
   

  
	
  Tranche D Term Loan
  Maturity Date

  	
   

  	
  94.00

  	
  %

  	
   

  

 

(c)           In the
event any New Term Loans are made, such New Term Loans shall be repaid on each
New Term Loan Repayment Date occurring on or after the applicable Increased
Amount Date in the amounts set forth in the applicable Joinder Agreement,
subject to the requirements set forth in Section 2.14.

 

(d)           Each
Lender shall maintain in accordance with its usual practice an account or
accounts evidencing the indebtedness of the Borrower to the appropriate lending
office of such Lender resulting from each Loan made by such lending office of
such Lender from time to time, including the amounts of principal and interest
payable and paid to such lending office of such Lender from time to time under
this Agreement.

 

(e)           The
Administrative Agent shall maintain the Register pursuant to Section 13.6(b),
and a subaccount for each Lender, in which Register and subaccounts (taken
together) shall be recorded (i) the amount of each Loan made hereunder,
whether such Loan is a Tranche D Term Loan, a New Term Loan, a Revolving Credit
Loan, or a Swingline Loan, the Type of each Loan made and the Interest Period
applicable thereto, (ii) the amount of any principal or interest due and
payable or to become due and payable from the Borrower to each Lender or the
Swingline Lender hereunder and (iii) the amount of any sum received by the
Administrative Agent from the Borrower and each Lender’s share thereof.

 

(f)            The
entries made in the Register and accounts and subaccounts maintained pursuant
to paragraphs (d) and (e) of this Section 2.5 shall, to the
extent permitted by applicable law, be prima facie evidence of the existence
and amounts of the obligations of the Borrower therein recorded; provided,
however, that the failure of any Lender or the Administrative Agent to
maintain such account, such Register or such subaccount, as applicable, or any
error therein, shall not in any manner affect the obligation of the Borrower to
repay (with applicable interest) the Loans made to the Borrower by such Lender
in accordance with the terms of this Agreement.

 

2.6                                                                                 Conversions and Continuations.  (a)  The Borrower shall have the
option on any Business Day to convert all or a portion equal to at least the
Minimum Borrowing

 

46

 

Amount of
the outstanding principal amount Tranche D Term Loans, New Term Loans or
Revolving Credit Loans of one Type into a Borrowing or Borrowings of another
Type and the Borrower shall have the option on any Business Day to continue the
outstanding principal amount of any Eurodollar Tranche D Term Loans, Eurodollar
New Term Loans or Eurodollar Revolving Credit Loans as Eurodollar Tranche D
Term Loans, Eurodollar New Term Loans or Eurodollar Revolving Credit Loans, as
the case may be, for an additional Interest Period; provided, that (i) no
partial conversion of Eurodollar Tranche D Term Loans, Eurodollar New Term
Loans or Eurodollar Revolving Credit Loans shall reduce the outstanding
principal amount of Eurodollar Tranche D Term Loans, Eurodollar New Term Loans
or Eurodollar Revolving Credit Loans made pursuant to a single Borrowing to
less than the Minimum Borrowing Amount, (ii) ABR Loans may not be
converted into Eurodollar Loans if a Default or an Event of Default is in
existence on the date of the conversion and the Administrative Agent has, or
the Required Lenders in respect of the Credit Facility that is the subject of
such conversion have, determined in its or their sole discretion not to permit
such conversion, (iii) Eurodollar Loans may not be continued as Eurodollar
Loans for an additional Interest Period if a Default or an Event of Default is
in existence on the date of the proposed continuation and the Administrative
Agent has, or the Required Lenders in respect of the Credit Facility that is
the subject of such conversion have, determined in its or their sole discretion
not to permit such continuation and (iv) Borrowings resulting from
conversions pursuant to this Section 2.6 shall be limited in number as
provided in Section 2.2.  Each such
conversion or continuation shall be effected by the Borrower by giving the
Administrative Agent at the applicable Administrative Agent’s Office prior to
1:00 p.m. (New York time) at least three Business Days’ (or one Business
Day’s notice in the case of a conversion into ABR Loans) prior written notice
(or telephonic notice promptly confirmed in writing) (each, a “Notice of
Conversion or Continuation”) specifying the Loans to be so converted or
continued, the Type of Loans to be converted or continued into and, if such
Loans are to be converted into or continued as Eurodollar Loans, the Interest
Period to be initially applicable thereto. 
The Administrative Agent shall give each Lender notice as promptly as
practicable of any such proposed conversion or continuation affecting any of
its Loans.

 

(b)                           If
any Default or Event of Default is in existence at the time of any proposed
continuation of any Eurodollar Loans and the Required Lenders have determined
in their sole discretion not to permit such continuation, Eurodollar Loans
shall be automatically converted on the last day of the current Interest Period
into ABR Loans.  If upon the expiration
of any Interest Period in respect of Eurodollar Loans, the Borrower has failed
to elect a new Interest Period to be applicable thereto as provided in paragraph (a) above,
the Borrower, shall be deemed to have elected to convert such Borrowing of
Eurodollar Loans into a Borrowing of ABR Loans, effective as of the expiration
date of such current Interest Period.

 

2.7                                                                                 Pro Rata Borrowings. 
Each Borrowing of Tranche D Term Loans under this Agreement shall be
granted by the Lenders pro rata on the basis of their then-applicable Tranche D
Term Loan Commitments.  Each Borrowing of
Revolving Credit Loans under this Agreement shall be granted by the Lenders pro
rata on the basis of their then-applicable Revolving Credit Commitments.  Each Borrowing of New Term Loans under this
Agreement shall be granted by the Lenders pro rata on the basis of their then
applicable New Term Loan Commitments.  It
is understood that no Lender shall be responsible for any default by any other
Lender in its obligation to make Loans hereunder and that each Lender shall be

 

 

47

 

obligated to make the Loans
provided to be made by it hereunder, regardless of the failure of any other
Lender to fulfill its commitments hereunder.

 

2.8                                                                                 Interest.  (a)  The
unpaid principal amount of each ABR Loan shall bear interest from the date of
the Borrowing thereof until maturity (whether by acceleration or otherwise) at
a rate per annum that shall at all times be the Applicable ABR Margin plus the
ABR in effect from time to time.

 

(b)                           The
unpaid principal amount of each Eurodollar Loan shall bear interest from the
date of the Borrowing thereof until maturity thereof (whether by acceleration
or otherwise) at a rate per annum that shall at all times be the Applicable
Eurodollar Margin in effect from time to time plus the relevant Eurodollar
Rate.

 

(c)                           If
all or a portion of the principal amount of any Loan or any interest payable
thereon or any fees or other amounts due hereunder shall not be paid when due
(whether at the stated maturity, by acceleration or otherwise), such overdue
amount shall bear interest (including post-petition interest in any proceeding
under the Bankruptcy Code or other applicable bankruptcy laws) at a rate per
annum that is (i) in the case of overdue principal, the rate that would
otherwise be applicable thereto plus 2% or (ii) in the case of
overdue interest, fees or other amounts due hereunder, to the extent permitted
by Applicable Law, the rate described in Section 2.8(a) plus
2% from and including the date of such non-payment to but excluding the date on
which such amount is paid in full (after as well as before judgment).  All such interest shall be payable on demand.

 

(d)                           Interest
on each Loan shall accrue from and including the date of any Borrowing to but
excluding the date of any repayment thereof and shall be payable (i) in
respect of each ABR Loan, quarterly in arrears on the last day of each March,
June, September and December, (ii) in respect of each Eurodollar
Loan, 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 (iii) in
respect of each Loan (except, other than in the case of prepayments, any ABR
Loan), on any prepayment (on the amount prepaid), at maturity (whether by
acceleration or otherwise) and, after such maturity, on demand.

 

(e)                           All
computations of interest hereunder shall be made in accordance with Section 5.5.

 

(f)                            The
Administrative Agent, upon determining the interest rate for any Borrowing of
Eurodollar Loans, shall promptly notify the Borrower and the relevant Lenders
thereof.  Each such determination shall,
absent clearly demonstrable error, be final and conclusive and binding on all
parties hereto.

 

2.9                                                                                 Interest Periods. 
At the time the Borrower gives a Notice of Borrowing or Notice of
Conversion or Continuation in respect of the making of, or conversion into or
continuation as, a Borrowing of Eurodollar Loans (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 a Borrowing of Eurodollar Loans, the Borrower

 

 

48

 

shall have the right to elect, by giving the
Administrative Agent written notice (or telephonic notice promptly confirmed in
writing), the Interest Period applicable to such Borrowing, which Interest
Period shall, at the option of the Borrower, be a one, two, three, six or (if
available to all the Lenders making such Loans as determined by such Lenders in
good faith based on prevailing market conditions) a nine or twelve month
period; provided, that the initial Interest Period may be for a period less
than one month if agreed upon by the Borrower and the Administrative
Agent.  Notwithstanding anything to the
contrary contained above:

 

(i)            the
initial Interest Period for any Borrowing of Eurodollar Loans shall commence on
the date of such Borrowing (including the date of any conversion from a
Borrowing of ABR Loans) and each Interest Period occurring thereafter in
respect of such Borrowing shall commence on the day on which the next preceding
Interest Period expires;

 

(ii)           if any
Interest Period relating to a Borrowing of Eurodollar Loans begins on the last
Business Day of a calendar month or 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 the calendar
month at the end of such Interest Period;

 

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

 

(iv)          the
Borrower shall not be entitled to elect any Interest Period in respect of any
Eurodollar Loan if such Interest Period would extend beyond the applicable
Maturity Date of such Loan.

 

2.10                                                                           Increased Costs, Illegality, etc.          (a) 
In the event that (x) in the case of clause (i) below, the
Administrative Agent or (y) in the case of clauses (ii) and (iii) below,
any Lender shall have reasonably determined (which determination shall, absent
clearly demonstrable error, be final and conclusive and binding upon all
parties hereto):

 

(i)            on any
date for determining the Eurodollar Rate for any Interest Period that (x) deposits
in the principal amounts of the Loans comprising any Eurodollar Borrowing are
not generally available in the relevant market or (y) by reason of any
changes arising on or after the Closing Date 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 Loans (other
than any such increase or reduction attributable to taxes) because of (x) any
change since the date hereof in any applicable law, governmental rule,
regulation, guideline or order (or in the interpretation or administration
thereof and including the introduction of any new law or governmental rule,
regulation, guideline or order), such as, for example, without limitation, a

 

49

 

change in
official reserve requirements, and/or (y) other circumstances affecting
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 become unlawful
by compliance by such Lender in good faith with any law, governmental rule,
regulation, guideline or order (or would conflict with any such governmental
rule, regulation, guideline or order not having the force of law even though
the failure to comply therewith would not be unlawful), or has become
impracticable as a result of a contingency occurring after the date hereof that
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
within a reasonable time thereafter give notice (if by telephone, confirmed in
writing) to the Borrower and 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 (which notice the Administrative Agent
agrees to give at such time when such circumstances no longer exist), and any
Notice of Borrowing or Notice of Conversion given by the Borrower with respect
to Eurodollar Loans that have not yet been incurred shall be deemed rescinded
by the Borrower, (y) in the case of clause (ii) above, the Borrower
shall pay to such Lender, promptly after receipt of written demand 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 reasonable
discretion shall determine) as shall be required to compensate such Lender for
such increased costs or reductions in amounts receivable hereunder (it being
agreed that 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 clearly demonstrable error, be
final and conclusive and binding upon all parties hereto) and (z) in the case
of clause (iii) above, the Borrower shall take one of the actions
specified in Section 2.10(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 2.10(a)(ii) or (iii), the Borrower may (and in the case of a
Eurodollar Loan affected pursuant to Section 2.10(a)(iii) shall)
either (x) if the affected Eurodollar Loan is then being made pursuant to
a Borrowing, cancel said Borrowing by giving the Administrative Agent
telephonic notice (confirmed promptly in writing) thereof on the same date that
the Borrower was notified by a Lender pursuant to Section 2.10(a)(ii) or
(iii) or (y) if the affected Eurodollar Loan is then outstanding, upon
at least three Business Days’ notice to the Administrative Agent, require the
affected Lender to convert each such Eurodollar Loan into an ABR Loan, if
applicable; provided, that if more than one Lender is affected at any
time, then all affected Lenders must be treated in the same manner pursuant to
this Section 2.10(b).

 

(c)                           If, after the date
hereof, the adoption of any applicable law, rule or regulation regarding
capital adequacy, or any change therein, or any change in the interpretation or
administration thereof by any governmental authority, the National Association
of Insurance Commissioners, central bank or comparable agency charged with the
interpretation or

 

50

 

administration
thereof, or compliance by a Lender or its parent with any request or directive
made or adopted after the date hereof regarding capital adequacy (whether or
not having the force of law) of any such authority, association, central bank
or comparable agency, has or would have the effect of reducing the rate of
return on such Lender’s or its parent’s capital or assets as a consequence of
such Lender’s commitments or obligations hereunder to a level below that which
such Lender or its parent could have achieved but for such adoption,
effectiveness, change or compliance (taking into consideration such Lender’s or
its parent’s policies with respect to capital adequacy), then from time to
time, promptly after demand by such Lender (with a copy to the Administrative
Agent), the Borrower shall pay to such Lender such additional amount or amounts
as will compensate such Lender or its parent for such reduction, it being
understood and agreed, however, that a Lender shall not be entitled to such
compensation as a result of such Lender’s compliance with, or pursuant to any
request or directive to comply with, any such law, rule or regulation as
in effect on the date hereof.  Each
Lender, upon determining in good faith that any additional amounts will be
payable pursuant to this Section 2.10(c), will give prompt written notice
thereof to the Borrower (on its own behalf) which notice shall set forth in
reasonable detail the basis of the calculation of such additional amounts,
although the failure to give any such notice shall not, subject to Section 2.13,
release or diminish any of the Borrower’s obligations to pay additional amounts
pursuant to this Section 2.10(c) upon receipt of such notice.

 

(d)                           This
Section 2.10 shall not apply to taxes to the extent duplicative of Section 5.4.

 

2.11         Compensation.  If (a) any payment of principal of a
Eurodollar Loan is made by the Borrower to or for the account of a Lender other
than on the last day of the Interest Period for such Eurodollar Loan as a
result of a payment or conversion pursuant to Section 2.5, 2.6, 2.10, 5.1,
5.2 or 13.7, as a result of acceleration of the maturity of the Loans pursuant
to Section 11 or for any other reason, (b) any Borrowing of
Eurodollar Loans is not made as a result of a withdrawn Notice of Borrowing, (c) any
ABR Loan is not converted into a Eurodollar Loan as a result of a withdrawn
Notice of Conversion or Continuation, (d) any Eurodollar Loan is not
continued as a Eurodollar Loan as a result of a withdrawn Notice of Conversion
or Continuation or (e) any prepayment of principal of a Eurodollar Loan is
not made as a result of a withdrawn notice of prepayment pursuant to Section 5.1
or 5.2, the Borrower shall, after receipt of a written request by such Lender
(which request shall set forth in reasonable detail the basis for requesting
such amount), pay to the Administrative Agent for the account of such Lender
any amounts required to compensate such Lender for any additional losses, costs
or expenses that such Lender may reasonably incur as a result of such payment,
failure to convert, failure to continue, failure to prepay, reduction or
failure to reduce, including any loss, cost or expense (excluding loss of
anticipated profits) actually incurred by reason of the liquidation or
reemployment of deposits or other funds acquired by such Lender to fund or
maintain such Eurodollar Loan.

 

2.12         Change of Lending
Office.  Each Lender agrees that,
upon the occurrence of any event giving rise to the operation of Section 2.10(a)(ii),
2.10(a)(iii), 2.10(b), 3.5 or 5.4 with respect to such Lender, it will, if
requested by the Borrower, use reasonable efforts (subject to overall policy
considerations of such Lender) to designate another lending office for any
Loans affected by such event; provided, that such designation is made on
such

 

51

 

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 any such Section.  Nothing
in this Section 2.12 shall affect or postpone any of the obligations of
the Borrower or the right of any Lender provided in Section 2.10, 3.5 or
5.4.

 

2.13         Notice of Certain Costs.  Notwithstanding anything in this Agreement to
the contrary, to the extent any notice required by Section 2.10, 2.11, 3.5
or 5.4 is given by any Lender more than 180 days after such Lender has
knowledge (or should have had knowledge) of the occurrence of the event giving
rise to the additional cost, reduction in amounts, loss, tax or other
additional amounts described in such Sections, such Lender shall not be
entitled to compensation under Section 2.10, 2.11, 3.5 or 5.4, as the case
may be, for any such amounts incurred or accruing prior to the giving of such
notice to the Borrower.

 

2.14         Incremental Facilities.  (a)  The Borrower may, by written notice
to the Administrative Agent, elect to request, (x) the establishment of
one or more new term loan commitments (the “New Term Loan Commitments”)
and/or (y) prior to the Revolving Credit Maturity Date, an increase to the
existing Revolving Credit Commitments (but not the Letter of Credit Commitment
or the Swingline Commitment) (any such increase, a “Revolving Credit
Increase” and, together with the New Term Loan Commitments, the “New
Commitments”), to effect the incurrence of Indebtedness permitted to be
incurred pursuant to Section 10.1(v) in an amount not in excess of
$150,000,000 in the aggregate and not less than $25,000,000 individually (or
such lesser amount which shall be approved by the Administrative Agent, and
integral multiples of $5,000,000 in excess of that amount).  Each such notice shall specify the date
(each, an “Increased Amount Date”) on which the Borrower proposes that
the New Commitments shall be effective, which shall be a date not less than 10
days after the date on which such notice is delivered to the Administrative
Agent; provided, that the Borrower shall first offer the Lenders under
the applicable existing Credit Facility, on a pro rata basis, the opportunity
to provide all of the New Commitments prior to offering such opportunity to any
other Person that is an eligible assignee pursuant to Section 13.6(b); provided,
further, that any Lender offered or approached to provide all or a portion
of the New Commitments may elect or decline, in its sole discretion, to provide
a New Commitment.  Such New Commitments
shall become effective, as of such Increased Amount Date; provided, that
(i) no Default or Event of Default shall exist on such Increased Amount
Date before or after giving effect to such New Commitments; (ii) both
before and after giving effect to the making of any Series of New Term
Loans or Revolving Credit Increase, each of the conditions set forth in Section 7
shall be satisfied; (iii) the Borrower and its Subsidiaries shall be in
pro forma compliance with each of the covenants set forth in Sections 10.9 and
10.10 as of the last day of the most recently ended fiscal quarter after giving
effect to such New Commitments and any investment to be consummated in connection
therewith; (iv) the New Commitments shall be effected pursuant to one or
more Joinder Agreements executed and delivered by the Borrower and the
Administrative Agent, and each of which shall be recorded in the Register and
shall be subject to the requirements set forth in Section 5.4(d); (v) the
Borrower shall make any payments required pursuant to Section 2.11 in connection
with the New Commitments, as applicable; and (vi) the Borrower shall
deliver or cause to be delivered any legal opinions or other documents
reasonably requested by the Administrative Agent in connection with any such
transaction.  Any New Term Loans made on
an Increased Amount Date shall be designated as a separate series (a “Series”)
of New Term Loans for all purposes of this Agreement and the other Credit
Documents.

 

 

52

 

(b)           Upon each
increase in the Revolving Credit Commitments pursuant to this Section, each
Lender with a Revolving Credit Commitment immediately prior to such increase
will automatically and without further act be deemed to have assigned to each
Lender providing a portion of the Revolving Credit Increase (each a “Revolving
Credit Increase Lender”) in respect of such increase, and each such
Revolving Credit Increase Lender will automatically and without further act be
deemed to have assumed, a portion of such Lender’s participations hereunder in
outstanding Letters of Credit and Swingline Loans such that, after giving effect
to each such deemed assignment and assumption of participations, the percentage
of the aggregate outstanding (i) participations hereunder in Letters of
Credit and (ii) participations hereunder in Swingline Loans held by each
Lender with a Revolving Credit Commitment (including each such Revolving Credit
Increase Lender) will equal the percentage of the aggregate Revolving Credit
Commitments of all Lenders represented by such Lender’s Revolving Credit
Commitment.  If, on the date of such
increase, there are any Revolving Credit Loans outstanding, such Revolving
Credit Loans shall on or prior to the effectiveness of such Revolving
Commitment Increase be prepaid from the proceeds of additional Revolving Credit
Loans made hereunder (reflecting such increase in Revolving Credit
Commitments), which prepayment shall be accompanied by accrued interest on the
Revolving Credit Loans being prepaid and any costs incurred by any Lender in
accordance with Section 2.11.  The
Administrative Agent and the Lenders hereby agree that the minimum borrowing,
pro rata borrowing and pro rata payment requirements contained elsewhere in
this Agreement shall not apply to the transactions effected pursuant to the
immediately preceding sentence.

 

(c)           On any
Increased Amount Date on which any New Term Loan Commitments of any Series are
effective, subject to the satisfaction of the foregoing terms and conditions, (i) each
Lender with a New Term Loan Commitment (each, a “New Term Loan Lender”)
of any Series shall make a loan to the Borrower (a “New Term Loan”) in an amount equal
to its New Term Loan Commitment of such Series, and (ii) each New Term
Loan Lender of any Series shall become a Lender hereunder with respect to
its New Term Loan Commitment of such Series and the New Term Loans of such
Series made by such Lender pursuant thereto.

 

(d)           The
Administrative Agent shall notify the Lenders promptly upon receipt of the
Borrower’s notice of each Increased Amount Date and in respect thereof (i) the
Series of New Term Loan Commitments and New Term Loan Lenders of such Series and
the Revolving Credit Increase and Revolving Credit Increase Lenders and (ii) in
the case of each notice to any Lender with Revolving Credit Exposure, the
respective interests in such Lender’s Revolving Credit Exposure subject to the
assignments contemplated by clause (b) of this Section 2.14.

 

(e)           The terms
and provisions of the New Term Loans and New Term Loan Commitments of any Series shall
be, except as otherwise set forth herein or in the Joinder Agreement, identical
to the Tranche D Term Loans; provided, however, that (i) the
New Term Loan Maturity Date for any Series shall be determined by the
Borrower and the applicable New Term Loan Lenders and shall be set forth in the
applicable Joinder Agreement; provided, that the applicable New Term
Loan Maturity Date of each Series shall be no shorter than the final
maturity of the Tranche D Term Loans and (ii) the rate of interest applicable
to the New Term Loans of each Series shall be determined by the Borrower
and the applicable New Term Loan Lenders and shall be set forth in the
applicable Joinder Agreement.

 

 

53

 

(f)            Each
Joinder Agreement may, without the consent of any other Lenders, effect such
amendments to this Agreement and the other Credit Documents as may be necessary
or appropriate, in the opinion of the Administrative Agent, to effect the
provisions of this Section 2.14.

 

SECTION 3.           Letters of Credit

 

3.1           Issuance
of Letters of Credit.  (a) 
Subject to and upon the terms and conditions herein set forth, at any time and
from time to time after the Closing Date and prior to the Revolving Credit
Maturity Date, the Letter of Credit Issuer agrees to issue (or cause its
Affiliate or other financial institution with which the Letter of Credit Issuer
shall have entered into an agreement regarding the issuance of letters of
credit hereunder, to issue on its behalf), upon the request of and for the
account of, the Borrower or any Restricted Subsidiary a standby letter of credit
or standby letters of credit (each, a “Letter of Credit”) in such form
as may be approved by the Letter of Credit Issuer in its reasonable discretion;
provided, that the
Borrower shall be a co-applicant, and be jointly and severally liable, with
respect to each Letter of Credit issued for the account of a Restricted
Subsidiary.  Each letter of credit issued
pursuant to the 2005 Credit Agreement or the Original Credit Agreement and
outstanding on the Effective Date shall continue to be outstanding and shall be
deemed to be Letters of Credit hereunder, subject to the terms and conditions
hereof.  Notwithstanding the foregoing, (i) no
Letter of Credit shall be issued the Stated Amount of which, when added to the
Letters of Credit Outstanding at such time, would exceed the Letter of Credit
Commitment then in effect, (ii) no Letter of Credit shall be issued the
Stated Amount of which, when added to the Letters of Credit Outstanding and the
Revolving Credit Loans and Swingline Loans outstanding at such time, would
exceed the Total Revolving Credit Commitment then in effect and (iii) each
Letter of Credit shall have an expiration date occurring no later than the
earlier of (x) one year after the date of issuance thereof, unless
otherwise agreed upon by the Administrative Agent and the Letter of Credit
Issuer, and (y) the fifth Business Day prior to the Revolving Credit
Maturity Date; provided, however, that any Letter of Credit may
be renewed for additional 12-month periods (which in no event shall extend
beyond the date referred to in clause (iii)(y) above).

 

(b)           (i) Each
Letter of Credit shall be denominated in Dollars, (ii) no Letter of Credit
shall be issued if it would be illegal under any applicable law for the
beneficiary of the Letter of Credit to have a Letter of Credit issued in its
favor, and (iii) no Letter of Credit shall be issued after the Letter of
Credit Issuer has received a written notice from the Borrower or any Lender
stating that a Default or an Event of Default has occurred and is continuing
until such time as the Letter of Credit Issuer shall have received a written
notice of (x) rescission of such notice from the party or parties
originally delivering such notice or (y) the waiver of such Default or
Event of Default in accordance with the provisions of Section 13.1.

 

3.2           Letter
of Credit Requests.  (a) 
Whenever the Borrower desires that a Letter of Credit be issued for its
account, it shall give the Administrative Agent and the Letter of Credit Issuer
at least two (or such lesser number as may be agreed upon by the Administrative
Agent and the Letter of Credit Issuer) Business Days’ written notice
thereof.  Each notice shall be executed
by the Borrower and shall be in the form of Exhibit F (each, a “Letter
of Credit Request”).  The Administrative
Agent shall promptly transmit copies of each Letter of Credit Request to each
Lender.

 

 

54

 

(b)           The making
of each Letter of Credit Request shall be deemed to be a representation and
warranty by the Borrower that the Letter of Credit may be issued in accordance
with, and will not violate the requirements of, Section 3.1.

 

3.3           Letter
of Credit Participations.  (a) Immediately
upon the issuance by the Letter of Credit Issuer of any Letter of Credit, the
Letter of Credit Issuer shall be deemed to have sold and transferred to each
other Lender that has a Letter of Credit Commitment (each such other Lender, in
its capacity under this Section 3.3(a), a “Letter of Credit Participant”),
and each such Letter of Credit Participant shall be deemed irrevocably and
unconditionally to have purchased and received from the Letter of Credit
Issuer, without recourse or warranty, an undivided interest and participation
(each, a “Letter of Credit Participation”), to the extent of such Letter
of Credit Participant’s Revolving Credit Commitment Percentage in such Letter
of Credit, each substitute letter of credit, each drawing made thereunder and
the obligations of the Borrower under this Agreement with respect thereto, and
any security therefor or guaranty pertaining thereto (although Letter of Credit
Fees will be paid directly to the Administrative Agent for the ratable account
of the Letter of Credit Participants as provided in Section 4.1(c) and
the Letter of Credit Participants shall have no right to receive any portion of
any Fronting Fees).

 

(b)           In
determining whether to pay under any Letter of Credit, the Letter of Credit
Issuer shall have no obligation relative to the Letter of Credit Participants
other than to confirm that any documents required to be delivered under such
Letter of Credit have been delivered and that they appear to comply on their
face with the requirements of such Letter of Credit.  Any action taken or omitted to be taken by
the Letter of Credit Issuer under or in connection with any Letter of Credit
issued by it, if taken or omitted in the absence of gross negligence or willful
misconduct, shall not create for the Letter of Credit Issuer any resulting
liability.

 

(c)           Whenever
the Letter of Credit Issuer receives a payment in respect of an unpaid
reimbursement obligation as to which the Administrative Agent has received for
the account of the Letter of Credit Issuer any payments from the Letter of
Credit Participants, the Letter of Credit Issuer shall pay to the
Administrative Agent and the Administrative Agent shall promptly pay to each
Letter of Credit Participant that has paid its Letter of Credit Commitment
Percentage of such reimbursement obligation, in Dollars and in immediately
available funds, an amount equal to such Letter of Credit Participant’s share
(based upon the proportionate aggregate amount originally funded or deposited
by such Letter of Credit Participant to the aggregate amount funded or
deposited by all Letter of Credit Participants) of the principal amount of such
reimbursement obligation and interest thereon accruing after the purchase of
the respective Letter of Credit Participations.

 

(d)           The
obligations of the Letter of Credit Participants to purchase Letter of Credit
Participations from the Letter of Credit Issuer and make payments to the
Administrative Agent for the account of the Letter of Credit Issuer with
respect to Letters of Credit shall be irrevocable and not subject to
counterclaim, set-off or other defense or any other qualification or exception
whatsoever and shall be made in accordance with the terms and conditions of
this Agreement under all circumstances, including under any of the following
circumstances:

 

55

 

 

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

 

(ii)           the
existence of any claim, set-off, defense or other right that the Borrower 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), the Administrative Agent, the Letter of Credit Issuer, any
Lender or 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 and the beneficiary
named in any such Letter of Credit);

 

(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;

 

provided, however,
that no Letter of Credit Participant shall be obligated to pay to the
Administrative Agent for the account of the Letter of Credit Issuer its Letter
of Credit Commitment Percentage of any unreimbursed amount arising from any
wrongful payment made by the Letter of Credit Issuer under a Letter of Credit
as a result of acts or omissions constituting willful misconduct or gross
negligence on the part of the Letter of Credit Issuer.

 

3.4           Agreement
to Repay Letter of Credit Drawings.  (a) The
Borrower hereby agrees to reimburse the Letter of Credit Issuer, by making
payment to the Administrative Agent for the account of the Letter of Credit
Issuer in immediately available funds, for any payment or disbursement made by
the Letter of Credit Issuer under any Letter of Credit issued by it (each such
amount so paid until reimbursed, an “Unpaid Drawing”) (i) within
one Business Day of the date of such payment or disbursement, if the Letter of
Credit Issuer provides notice to the Borrower of such payment or disbursement
prior to 10:00 a.m. (New York time) on such next succeeding Business Day
after the date of such payment or disbursement or (ii) if such notice is
received after such time, on the Business Day following the date of receipt of
such notice (such required date for reimbursement under clause (i) or
(ii), as applicable, the “Required Reimbursement Date”), with interest
on the amount so paid or disbursed by such Letter of Credit Issuer, (A) from
and including the date of such payment or disbursement to but excluding the
Required Reimbursement Date, at the per annum rate for each day equal to (x) the
Applicable Eurodollar Margin then in effect times (y) the amount of such Unpaid
Drawing, and (B) to the extent not reimbursed prior to 5:00 p.m. (New
York time) on the Required Reimbursement Date, from and including the Required
Reimbursement Date to but excluding the date such Letter of Credit Issuer is
reimbursed therefor, at a rate per annum that shall at all times be the
relevant Applicable ABR Margin plus the ABR as in effect from time to
time plus 2%; provided, that, notwithstanding anything contained
in this Agreement to the contrary, with respect to any Letter of Credit, (i) unless
the Borrower shall have notified the Administrative Agent and the Letter of
Credit Issuer prior to 10:00 a.m. (New York time) on the Required
Reimbursement Date that the 

 

56

 

Borrower
intends to reimburse the Letter of Credit Issuer for the amount of such drawing
with funds other than the proceeds of Revolving Credit Loans, the Borrower
shall be deemed to have given a Notice of Borrowing requesting that the Lenders with Revolving Credit Commitments
make Revolving Credit Loans (which shall be ABR Loans) on the date on which
such drawing is honored in an amount equal to the amount of such drawing, and (ii) the
Administrative Agent shall promptly notify each Letter of Credit Participant of
such drawing and the amount of its Revolving Credit Loan to be made in respect
thereof, and each Letter of Credit Participant shall be irrevocably obligated
to make a Revolving Credit Loan to the Borrower in the manner deemed to have
been requested in the amount of its Revolving Credit Commitment Percentage of
the applicable Unpaid Drawing by 1:00 p.m. (New York time) on such
Business Day by making the amount of such Revolving Credit Loan available to
the Administrative Agent.  Such Revolving
Credit Loans shall be made without regard to the Minimum Borrowing Amount.  The Administrative Agent shall use the
proceeds of such Revolving Credit Loans solely for purpose of reimbursing the
Letter of Credit Issuer for the related Unpaid Drawing.

 

(b)                           The
obligations of the Borrower under this Section 3.4 to reimburse the Letter
of Credit Issuer with respect to Unpaid Drawings (including, in each case,
interest thereon) shall be absolute and unconditional under any and all
circumstances and irrespective of any set-off, counterclaim or defense to
payment that the Borrower or any other Person may have or have had against the
Letter of Credit Issuer, the Administrative Agent or any Lender (including in
its capacity as a Letter of Credit Participant), including any defense based
upon the failure of any drawing under a Letter of Credit (each a “Drawing”)
to conform to the terms of the Letter of Credit or any non-application or
misapplication by the beneficiary of the proceeds of such Drawing; provided,
that the Borrower shall not be obligated to reimburse the Letter of Credit
Issuer for any wrongful payment made by the Letter of Credit Issuer under the
Letter of Credit issued by it as a result of acts or omissions constituting
willful misconduct or gross negligence on the part of the Letter of Credit
Issuer.

 

3.5           Increased
Costs.  If, after the date hereof,
the adoption of any applicable law, rule or regulation, or any change
therein, or any change in the interpretation or administration thereof by any
Governmental Authority, central bank or comparable agency charged with the
interpretation or administration thereof, or actual compliance by the Letter of
Credit Issuer or any Letter of Credit Participant with any request or directive
made or adopted after the date hereof (whether or not having the force of law),
by any such authority, central bank or comparable agency shall either (a) impose,
modify or make applicable any reserve, deposit, capital adequacy or similar
requirement against letters of credit issued by the Letter of Credit Issuer, or
any Letter of Credit Participant’s Letter of Credit Participation therein, or (b) impose
on the Letter of Credit Issuer or any Letter of Credit Participant any other
conditions affecting its obligations under this Agreement in respect of Letters
of Credit or Letter of Credit Participations therein or any Letter of Credit or
such Letter of Credit Participant’s Letter of Credit Participation therein, and
the result of any of the foregoing is to increase the cost to the Letter of
Credit Issuer or such Letter of Credit Participant of issuing, maintaining or
participating in any Letter of Credit, or to reduce the amount of any sum
received or receivable by the Letter of Credit Issuer or such Letter of Credit
Participant hereunder (other than any such increase or reduction attributable
to taxes) in respect of Letters of Credit or Letter of Credit Participations
therein, then, promptly after receipt of written demand to the Borrower by the
Letter of Credit Issuer or such Letter of Credit Participant, as the case may
be (a copy of which notice shall be sent by the 

 

 

57

 

Letter of Credit Issuer or
such Letter of Credit Participant to the Administrative Agent), the Borrower
shall pay to the Letter of Credit Issuer or such Letter of Credit Participant
such additional amount or amounts as will compensate the Letter of Credit
Issuer or such Letter of Credit Participant for such increased cost or
reduction, it being understood and agreed, however, that the Letter of Credit
Issuer or a Letter of Credit Participant shall not be entitled to such
compensation as a result of such Person’s compliance with, or pursuant to any
request or directive to comply with, any such law, rule or regulation as
in effect on the date hereof.  A certificate
submitted to the Borrower by the Letter of Credit Issuer or a Letter of Credit
Participant, as the case may be (a copy of which certificate shall be sent by
the Letter of Credit Issuer or such Letter of Credit Participant to the
Administrative Agent) setting forth in reasonable detail the basis for the
determination of such additional amount or amounts necessary to compensate the
Letter of Credit Issuer or such Letter of Credit Participant as aforesaid shall
be conclusive and binding on the Borrower absent clearly demonstrable error.

 

3.6           New or
Successor Letter of Credit Issuer.  (a) 
The Letter of Credit Issuer may resign as a Letter of Credit Issuer upon 60
days’ prior written notice to the Administrative Agent, the Lenders and the
Borrower. The Borrower may replace the Letter of Credit Issuer for any reason
upon written notice to the Administrative Agent and the Letter of Credit
Issuer.  The Borrower may add a Letter of
Credit Issuer at any time upon notice to the Administrative Agent.  If the Letter of Credit Issuer shall resign,
be replaced or a new Letter of Credit Issuer is added as a Letter of Credit
Issuer under this Agreement, then the Borrower may appoint from among the
Lenders a successor issuer or new issuer of Letters of Credit or, with the
consent of the Administrative Agent (such consent not to be unreasonably
withheld), another successor issuer or new issuer of Letters of Credit,
whereupon such successor issuer or new issuer of Letters of Credit shall
succeed to or be granted the rights, powers and duties of a Letter of Credit
Issuer under this Agreement and the other Credit Documents (which in the case
of any successor Letter of Credit Issuer, shall mean the rights, powers and
duties of the relevant replaced or resigning Letter of Credit Issuer), and the
term “Letter of Credit Issuer” shall mean such successor issuer or such new
issuer of Letters of Credit effective upon such appointment.  At the time such resignation or replacement
shall become effective, the Borrower shall pay to the resigning or replaced
Letter of Credit Issuer all accrued and unpaid fees pursuant to Sections
4.1(b).  The acceptance of any
appointment as a Letter of Credit Issuer hereunder whether as a successor
issuer or new issuer of Letters of Credit in accordance with this Agreement,
shall be evidenced by an agreement entered into by such new or successor issuer
of Letters of Credit, in a form satisfactory to the Borrower and the
Administrative Agent and, from and after the effective date of such agreement,
such new or successor issuer of Letters of Credit shall have all the rights and
obligations of a Letter of Credit Issuer under this Agreement and the other
Credit Documents (which in the case of any successor Letter of Credit Issuer,
shall mean the rights, powers and duties of the relevant replaced or resigning
Letter of Credit Issuer).  After the
resignation or replacement of a Letter of Credit Issuer hereunder, the
resigning or replaced Letter of Credit Issuer shall remain a party hereto and
shall continue to have all the rights and obligations of a Letter of Credit
Issuer under this Agreement and the other Credit Documents with respect to
Letters of Credit issued by it prior to such resignation or replacement, but
shall not be required to issue additional Letters of Credit.  In connection with any resignation or
replacement pursuant to this clause (a) (but, in case of any such
resignation, only to the extent that a successor issuer of Letters of Credit
shall have been appointed), either (i) the Borrower, the resigning or
replaced Letter of Credit Issuer and the successor issuer of Letters of Credit
shall arrange to have any 

 

 

58

 

outstanding
Letters of Credit issued by the resigning or replaced Letter of Credit Issuer
replaced with Letters of Credit issued by the successor issuer of Letters of
Credit or (ii) the Borrower shall cause the successor issuer of Letters of
Credit, if such successor issuer is reasonably satisfactory to the replaced or
resigning Letter of Credit Issuer, to issue “back-stop” Letters of Credit
naming the resigning or replaced Letter of Credit Issuer as beneficiary for
each outstanding Letter of Credit issued by the resigning or replaced Letter of
Credit Issuer, which new Letters of Credit shall have a face amount equal to
the Letters of Credit being back-stopped and the sole requirement for drawing
on such new Letters of Credit shall be a drawing on the corresponding
back-stopped Letters of Credit.  After
any resigning or replaced Letter of Credit Issuer’s resignation or replacement
as Letter of Credit Issuer, the provisions of this Agreement relating to a
Letter of Credit Issuer shall inure to its benefit as to any actions taken or
omitted to be taken by it (A) while it was a Letter of Credit Issuer under
this Agreement or (B) at any time with respect to Letters of Credit issued
by such Letter of Credit Issuer.

 

(b)                           To
the extent that there are, at the time of any resignation or replacement as set
forth in clause (a) above, any outstanding Letters of Credit, nothing
herein shall be deemed to impact or impair any rights and obligations of any of
the parties hereto with respect to such outstanding Letters of Credit
(including, without limitation, any obligations related to the payment of Fees or
the reimbursement or funding of amounts drawn), except that the Borrower, the
resigning or replaced Letter of Credit Issuer and the successor issuer of
Letters of Credit shall have the obligations regarding outstanding Letters of
Credit described in clause (a) above.

 

SECTION 4.           Fees; Commitment Reductions and
Terminations

 

4.1          Fees.  (a)  The
Borrower agrees to pay to the Administrative Agent for the account of each
Lender having a Revolving Credit Commitment, a commitment fee which shall
accrue at percentage per annum set forth below of the daily average unused
portion of the Revolving Credit Commitment of such Lender (which, for purposes
of this Section 4.1 only, shall not include the incurrence of Swingline
Loans) based upon the Status in effect on such date, and which shall be payable
quarterly in arrears on the last day of each March, June, September and December and
on the Final Date.

 

	
  Status

  	
   

  	
  Applicable Revolving

  Commitment Fee

  Percentage

  	
   

  
	
  Level I

  	
   

  	
  0.50

  	
  %

  
	
  Level II

  	
   

  	
  0.375

  	
  %

  

 

(b)                           The
Borrower agrees to pay to the Administrative Agent for the account of the
Letter of Credit Issuer a fee in respect of each Letter of Credit issued
hereunder (the “Fronting Fee”), for the period from and including the
date of issuance of such Letter of Credit to but excluding the termination or
expiration date of such Letter of Credit, computed at the rate for each day
equal to such rate per annum as is agreed in a separate writing between the
Letter of Credit Issuer and the Borrower. 
The Fronting Fee shall be due and payable quarterly in arrears on the
last day of each March, June, September and December and on the Final
Date.

 

59

 

 

(c)                           The
Borrower agrees to pay to the Administrative Agent for the account of each Lender
having a Revolving Credit Commitment, pro rata according to the Letter of
Credit Exposure of such Lender, 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 but excluding the termination or expiration date of
such Letter of Credit, computed at the per annum rate for each day equal to (x) the
Applicable Eurodollar Margin then in effect for Letters of Credit times (y) the
average daily Stated Amount of such Letter of Credit.  The Letter of Credit Fee shall be payable
quarterly in arrears on the last day of each March, June, September and December and
on the applicable Final Date.

 

(d)                           The
Borrower agrees to pay directly to the Letter of Credit Issuer upon each
issuance of, drawing under and/or amendment of a Letter of Credit issued by it
such amount as the Letter of Credit Issuer and the Borrower shall have agreed
upon for issuances of, drawings under or amendments of, letters of credit
issued by it.

 

(e)                           Notwithstanding
the foregoing, the Borrower shall not be obligated to pay any amounts to any
Defaulting Lender pursuant to this Section 4.1 until the event or
circumstances giving rise to such Lender being designated as a Defaulting
Lender have been cured.

 

4.2           Voluntary
Reduction of Commitments.  Upon at
least one Business Day’s prior written notice (or telephonic notice promptly
confirmed in writing) to the Administrative Agent at the Administrative Agent’s
Office (which notice the Administrative Agent shall promptly transmit to each
of the Lenders), the Borrower shall have the right, without premium or penalty,
on any day, permanently to terminate or reduce the Revolving Credit Commitments
in whole or in part; provided, that (i) any partial reduction pursuant
to this Section 4.2 shall be in the amount of at least $1,000,000 and (ii) after
giving effect to such termination or reduction and to any prepayments of
Revolving Credit Loans or cancellation or cash collateralization of Letters of
Credit made on the date thereof in accordance with this Agreement, the
aggregate amount of the Lenders’ Revolving Credit Exposures shall not exceed
the Total Revolving Credit Commitment.

 

4.3                           Mandatory
Termination of Commitments.  (a) 
The Total Tranche D Term Loan Commitment shall terminate at 5:00 p.m.
(New York time) on the Effective Date.

 

(b)                           The
Total Revolving Credit Commitment shall terminate at 5:00 p.m. (New York
time) on the Revolving Credit Maturity Date.

 

(c)                           The
Swingline Commitment shall terminate at 5:00 p.m. (New York time) on the
Swingline Maturity Date.

 

(d)                           The
New Term Loan Commitment for any Series shall terminate at 5:00 p.m.
(New York time) on the Increased Amount Date for such Series.

 

SECTION 5            Payments

 

5.1                           Voluntary
Prepayments.  (a) The Borrower
shall have the right to prepay Term Loans, Revolving Credit Loans and Swingline
Loans, without premium or penalty,

 

60

except as
set forth in clause (b) below,  in
whole or in part from time to time on the following terms and conditions:  (a) the Borrower shall give the
Administrative Agent at the Administrative Agent’s Office written notice (or
telephonic notice promptly confirmed in writing) of its intent to make such
prepayment, the amount of such prepayment and in the case of Eurodollar Loans,
the specific Borrowing(s) pursuant to which made, which notice shall be
given by the Borrower no later than (i) in the case of Term Loans or
Revolving Credit Loans, 1:00 p.m. (New York time) one Business Day prior
to, or (ii) in the case of Swingline Loans, 1:00 p.m. (New York time)
on, the date of such prepayment and shall promptly be transmitted by the
Administrative Agent to each of the Lenders or the Swingline Lender, as the
case may be; (b) each partial prepayment of any Borrowing of Term Loans or
Revolving Credit Loans shall be in a multiple of $100,000 and in an aggregate
principal amount of at least $1,000,000 and each partial prepayment of
Swingline Loans shall be in a multiple of $100,000 and in an aggregate
principal amount of at least $100,000; provided, that no partial
prepayment 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 for Eurodollar Loans; (c) any
prepayment of Eurodollar Loans pursuant to this Section 5.1 on any day
other than the last day of an Interest Period applicable thereto shall be
subject to compliance by the Borrower with the applicable provisions of Section 2.11.  Each prepayment in respect of any tranche of
Term Loans pursuant to this Section 5.1 shall be applied to Term Loans in
such manner as the Borrower may determine. 
At the Borrower’s election in connection with any prepayment pursuant to
this Section 5.1, such prepayment shall not be applied to any Loan of a
Defaulting Lender.

 

(b)           Any
(i) amendment, amendment and restatement or other modification of this
Agreement consummated within one (1) year after the Effective Date or (ii) voluntary
prepayment of all but not less than all of the Tranche D Term Loans consummated
within one (1) year after the Effective Date with the proceeds of a
substantially concurrent issuance or incurrence of new bank loans (which
voluntary prepayment shall be deemed to have occurred even if a portion of the
Tranche D Term Loans are replaced or converted with, into or by such new loans
so long as all but not less than all of the Tranche D Term Loans are so
prepaid) the effect of which, in the case of either clause (i) or clause
(ii), is primarily to decrease the Applicable Margin with respect to the
Tranche D Term Loans, shall be accompanied by a fee payable to the Tranche D
Term Lenders in an amount equal to 1.0% of the aggregate principal amount of
the Tranche D Term Loans then outstanding only if such amendment, prepayment,
replacement or conversion is not otherwise undertaken in connection with
another material transaction or series of related material transactions.

 

5.2           Mandatory
Prepayments.  (a)  Term Loan
Prepayments.  (i)  On each
occasion that a Prepayment Event occurs, the Borrower shall, within one
Business Day after the occurrence of a Debt Incurrence Prepayment Event and
within five Business Days after the receipt of Net Cash Proceeds in connection
with the occurrence of any other Prepayment Event, prepay, in accordance with
paragraphs (c) and (d) below, a principal amount of Term Loans in an
amount equal to 100% of the Net Cash Proceeds from such Prepayment Event.

 

(ii)           Not later
than the date that is ninety days after the last day of any fiscal year
(commencing with the fiscal year ending December 31, 2006), the Borrower
shall prepay, in accordance with paragraphs (c) and (d) below, a
principal of Term Loans in an amount equal to (x) 50% of Excess Cash Flow
for such fiscal year (provided such percentage shall be

 

61

 

reduced to (i) 25%  of
Excess Cash Flow for such fiscal year so long as immediately prior to such
prepayment, but without giving effect to such prepayment, the Borrower’s ratio
of Consolidated Total Debt  on such prepayment date to
Consolidated EBITDA  for the most recent Test Period ended prior
to such prepayment date is no greater than 5.00:1.00 and (ii)  0% of
Excess Cash Flow for such fiscal year so long as immediately prior to such
prepayment, but without giving effect to such prepayment, the Borrower’s ratio
of Consolidated Total Debt  on such prepayment date to
Consolidated EBITDA  for the most recent Test Period ended prior
to such prepayment date is no greater than 4.00:1.00, minus (y) the
principal amount of Term Loans voluntarily prepaid pursuant to Section 5.1
during such fiscal year, other than the Original Term Loans prepaid on the
Effective Date with the proceeds of the Tranche D Term Loans.

 

(b)           Repayment
of Revolving Credit Loans.  If on any
date the aggregate amount of the Lenders’ Revolving Credit Exposures plus the
aggregate principal amount of all Swingline Loans exceeds the Total Revolving
Credit Commitment as then in effect, the Borrower shall forthwith repay on such
date the principal amount of Swingline Loans and, after all Swingline Loans
have been paid in full, Revolving Credit Loans in an amount equal to such
excess.  If, after giving effect to the
prepayment of all outstanding Swingline Loans and Revolving Credit Loans, the
aggregate amount of the Lenders’ Revolving Credit Exposures exceed the Total
Revolving Credit Commitment then in effect, the Borrower shall pay to the
Administrative Agent an amount in cash equal to such excess and the
Administrative Agent shall hold such payment for the benefit of the Lenders as
security for the obligations of the Borrower hereunder (including obligations in
respect of Letter of Credit Outstandings) pursuant to a cash collateral
agreement to be entered into in form and substance satisfactory to the
Administrative Agent (which shall permit certain investments in Permitted
Investments satisfactory to the Administrative Agent, until the proceeds are
applied to the secured obligations).

 

(c)           Application
to Repayment Amounts.  Each
prepayment of Term Loans required by Sections 5.2(a)(i) and (ii) shall
be applied to reduce Tranche D Term Loan Repayment Amounts to the extent not
declined under subclause (ii) below in direct order to the remaining
Tranche D Term Loan Repayment Amounts. 
With respect to each such prepayment, (i) the Borrower will, not
later than the date specified in Section 5.2(a) for offering to make
such prepayment, give the Administrative Agent telephonic notice (promptly
confirmed in writing) requesting that the Administrative Agent provide notice
of such prepayment to each Lender of Term Loans, (ii) the Administrative
Agent shall promptly provide notice of such prepayment to each Lender of Term
Loans, (iii) each Lender of Term Loans will have the right to refuse any
such prepayment by giving written notice of such refusal to the Borrower within
fifteen Business Days after such Lender’s receipt of notice from the
Administrative Agent of such prepayment (and the Borrower shall not prepay any
such Term Loans until the date that is specified in the immediately following
clause), (iv) the Borrower will make all such prepayments not so refused
upon the earlier of (x) such fifteenth Business Day and (y) such time
as the Borrower has received notice from each Lender that it consents to or
refuses such prepayment and (v) any prepayment so refused may be retained
by the Borrower; provided, that any prepayment so refused that relates
to Net Cash Proceeds from a Debt Incurrence Prepayment Event in respect of the
issuance of Permitted Additional Notes shall be allocated to the then
outstanding Term Loans and shall be applied as set forth above in this
paragraph (c).

 

 

62

 

 

(d)           Application
to Term Loans.  With respect to each
prepayment of Term Loans required by Section 5.2(a), the Borrower may
designate the Types of Loans that are to be prepaid and the specific Borrowing(s) pursuant
to which made; provided, that the Borrower pays any amounts, if any,
required to be paid pursuant to Section 2.11 with respect to prepayments
of Eurodollar Term Loans made on any date other than the last day of the
applicable Interest Period.  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 reasonable discretion with a view, but no obligation, to
minimize breakage costs owing under Section 2.11.

 

(e)           Application
to Revolving Credit Loans.  With
respect to each prepayment of Revolving Credit Loans elected by the Borrower
pursuant to Section 5.1 or required by Section 5.2(b), the Borrower
may designate (i) the Types of Loans that are to be prepaid and the
specific Borrowing(s) pursuant to which made and (ii) the Revolving
Credit Loans to be prepaid; provided, that (x) Eurodollar Revolving
Credit Loans may be designated for prepayment pursuant to this Section 5.2
only on the last day of an Interest Period applicable thereto unless all
Eurodollar Loans with Interest Periods ending on such date of required
prepayment and all ABR Loans have been paid in full; (y) each prepayment
of any Loans made pursuant to a Borrowing shall be applied pro rata among such Loans; and (z) notwithstanding the
provisions of the preceding clause (y), no prepayment made pursuant to Section 5.1
or Section 5.2(b) of Revolving Credit Loans shall be applied to the
Revolving Credit Loans of any Defaulting Lender.  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 reasonable discretion
with a view, but no obligation, to minimize breakage costs owing under Section 2.11.

 

(f)            Eurodollar
Interest Periods.  In lieu of making
any payment pursuant to this Section 5.2 in respect of any Eurodollar Loan
other than on the last day of the Interest Period therefor so long as no
Default or Event of Default shall have occurred and be continuing, the Borrower
at its option may deposit with the Administrative Agent an amount equal to the
amount of the Eurodollar Loan to be prepaid and such Eurodollar Loan shall be
repaid on the last day of the Interest Period therefor in the required
amount.  Such deposit shall be held by
the Administrative Agent in a corporate time deposit account established on
terms reasonably satisfactory to the Administrative Agent, earning interest at
the then-customary rate for accounts of such type.  Such deposit shall constitute cash collateral
for the Specified Obligations, provided that the Borrower may at any
time direct that such deposit be applied to make the applicable payment
required pursuant to this Section 5.2.

 

(g)           Minimum
Amount.  No prepayment shall be
required pursuant to Section 5.2(a)(i) unless and until the amount at
any time of Net Cash Proceeds from Prepayment Events required to be applied at
or prior to such time pursuant to such Section and not yet applied at or prior
to such time to prepay Term Loans pursuant to such Section exceeds (i) $5,000,000
for any single Prepayment Event or series of related Prepayment Events and (ii) $10,000,000
in the aggregate for all such Prepayment Events.

 

(h)           Foreign
Asset Sales.  Notwithstanding any
other provisions of this Section 5.2, (i) to the extent that any of
or all the Net Cash Proceeds of any asset sale by a Restricted Foreign
Subsidiary giving rise to an Asset Sale Prepayment Event (a “Foreign Asset
Sale”), the Net Cash Proceeds of any Recovery Event from a Restricted
Foreign Subsidiary (a 

 

 

63

 

“Foreign
Recovery Event”), or Excess Cash Flow are prohibited or delayed by
applicable local law from being repatriated to the United States, the portion
of such Net Cash Proceeds or Excess Cash Flow so affected will not be required
to be applied to repay Term Loans at the times provided in this Section 5.2
but may be retained by the applicable Restricted Foreign Subsidiary so long, but
only so long, as the applicable local law will not permit repatriation to the
United States (the Borrower hereby agreeing to cause the applicable Restricted
Foreign Subsidiary to promptly take all actions required by the applicable
local law to permit such repatriation), and once such repatriation of any of
such affected Net Cash Proceeds or Excess Cash Flow is permitted under the
applicable local law, such repatriation will be immediately effected and such
repatriated Net Cash Proceeds or Excess Cash Flow will be promptly (and in any
event not later than two Business Days after such repatriation) applied (net of
additional taxes payable or reserved against as a result thereof) to the
repayment of the Term Loans pursuant to this Section 5.2 and (ii) to
the extent that the Borrower has determined in good faith that repatriation of
any of or all the Net Cash Proceeds of any Foreign Asset Sale, any Foreign
Recovery Event or Excess Cash Flow would have a material adverse tax cost
consequence with respect to such Net Cash Proceeds or Excess Cash Flow, the Net
Cash Proceeds or Excess Cash Flow so affected may be retained by the applicable
Restricted Foreign Subsidiary; provided, that, in the case of this
clause (ii), on or before the date on which any Net Cash Proceeds so retained
would otherwise have been required to be applied to reinvestments or
prepayments pursuant to Section 5.2(a) (or such Excess Cash Flow
would have been so required if it were Net Cash Proceeds), (x) the
Borrower applies an amount equal to such Net Cash Proceeds or Excess Cash Flow
to such reinvestments or prepayments as if such Net Cash Proceeds or Excess
Cash Flow had been received by the Borrower rather than such Restricted Foreign
Subsidiary, less the amount of additional taxes that would have been payable or
reserved against if such Net Cash Proceeds or Excess Cash Flow had been
repatriated (or, if less, the Net Cash Proceeds or Excess Cash Flow that would
be calculated if received by such Foreign Subsidiary) or (y) such Net Cash
Proceeds or Excess Cash Flow are applied to the repayment of Indebtedness of a
Restricted Foreign Subsidiary.

 

5.3           Method
and Place of Payment.  (a) 
Except as otherwise specifically provided herein, all payments under this
Agreement shall be made by the Borrower, without set-off, counterclaim or
deduction of any kind, to the Administrative Agent for the ratable account of
the Lenders entitled thereto, the Letter of Credit Issuer or the Swingline
Lender, as the case may be, not later than 1:00 p.m. (New York time) on
the date when due and shall be made in immediately available funds in Dollars
at the Administrative Agent’s Office, it being understood that written or
facsimile notice by the Borrower to the Administrative Agent to make a payment
from the funds in the Borrower’s account at the Administrative Agent’s Office
shall constitute the making of such payment to the extent of such funds held in
such account.  The Administrative Agent
will thereafter cause to be distributed on the same day (if payment was
actually received by the Administrative Agent prior to 2:00 p.m. (New York
time) on such day) like funds relating to the payment of principal or interest
or Fees ratably to the Lenders entitled thereto or to the Letter of Credit
Issuer or the Swingline Lender, as applicable.

 

(b)                           For
purposes of computing interest or fees, any payments under this Agreement that
are made later than 2:00 p.m. (New York time) shall be deemed to have been
made on the next succeeding Business Day. 
Whenever any payment to be made hereunder shall be stated to be due on a
day that is not a Business Day, the due date thereof shall be extended to

 

64

 

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

 

5.4           Net
Payments.  (a)  Subject to the
following sentence, all payments made by or on behalf of the Borrower under
this Agreement or any other Credit Document shall be made free and clear of,
and without deduction or withholding for or on account of, any current or
future income, stamp or other taxes, levies, imposts, duties, charges, fees,
deductions or withholdings, now or hereafter imposed, levied, collected,
withheld or assessed by any Governmental Authority, excluding (i) net
income taxes, branch profits taxes, and franchise taxes (imposed in lieu of net
income taxes) and capital taxes imposed on the Administrative Agent or any
Lender and (ii) any taxes imposed on the Administrative Agent or any
Lender as a result of a current or former connection between the Administrative
Agent or such Lender and the jurisdiction of the Governmental Authority
imposing such tax or any political subdivision or taxing authority thereof or
therein (other than any such connection arising solely from the Administrative
Agent or such Lender having executed, delivered or performed its obligations or
received a payment under, or enforced, this Agreement).  If any such non-excluded taxes, levies,
imposts, duties, charges, fees, deductions or withholdings (“Non-Excluded
Taxes”) are required to be withheld from any amounts payable under this
Agreement, the Borrower shall increase the amounts payable to the
Administrative Agent or such Lender to the extent necessary to yield to the
Administrative Agent or such Lender (after payment of all Non-Excluded Taxes)
interest or any such other amounts payable hereunder at the rates or in the
amounts specified in this Agreement; provided, however, that the Borrower shall not be
required to increase any such amounts payable to any Lender that is not
organized under the laws of the United States of America or a state thereof (a “Non-U.S.
Lender”) if such Lender fails to comply with the requirements of
paragraph (b) of this Section 5.4.  Whenever any Non-Excluded Taxes are payable
by the Borrower, as promptly as possible thereafter the Borrower shall send to
the Administrative Agent for its own account or for the account of such Lender,
as the case may be, a certified copy of an original official receipt (or other
evidence acceptable to such Lender, acting reasonably) received by the Borrower
showing payment thereof.  If Non-Excluded
Taxes are paid by any Lender, the Borrower shall indemnify such Lender for such
Non-Excluded Taxes (including penalties, interest and reasonable expenses),
whether or not such Non-Excluded Taxes are correctly or legally asserted; provided,
however, that the Borrower shall not be obligated to indemnify any
Lender for any interest, penalties or expenses arising from the indemnitee’s
gross negligence or willful misconduct. The agreements in this Section 5.4(a) shall
survive the termination of this Agreement and the payment of the Loans and all
other amounts payable hereunder.

 

(b)           Each
Non-U.S. Lender shall:

 

(i)            deliver
to the Borrower and the Administrative Agent two copies of either (x) in
the case of Non-U.S. Lender claiming exemption from U.S. Federal withholding
tax under Section 871(h) or 881(c) of the Code with respect to
payments of “portfolio interest”, United States Internal Revenue Service Form W-8BEN
(together with a certificate representing that such Non-U.S. Lender is not a
bank for purposes of Section 881(c) of the Code, is not a 10-percent
shareholder (within the meaning of Section 871(h)(3)(B) of the Code)
of the Borrower and is not a controlled foreign corporation related to the
Borrower (within the meaning of

 

65

 

Section 864(d)(4) of
the Code)), or (y) Internal Revenue Service Form W-8BEN or Form W-8ECI,
in each case properly completed and duly executed by such Non-U.S. Lender
claiming complete exemption from, or reduced rate of, U.S. Federal withholding
tax on payments by the Borrower under this Agreement;

 

(ii)           deliver
to the Borrower and the Administrative Agent two further copies of any such
form or certification (or any applicable successor form) on or before the date
that any such form or certification expires or becomes obsolete and after the
occurrence of any event requiring a change in the most recent form previously
delivered by it to the Borrower; and

 

(iii)          obtain
such extensions of time for filing and complete such forms or certifications as
may reasonably be requested by the Borrower or the Administrative Agent;

 

unless in any such case any change in treaty,
law or regulation has occurred prior to the date on which any such delivery
would otherwise be required that renders any such form inapplicable or would
prevent such Lender from duly completing and delivering any such form with
respect to it and such Lender so advises the Borrower and the Administrative
Agent.  Each Person that shall become a
Participant pursuant to Section 13.6 or a Lender pursuant to Section 13.6
shall, upon the effectiveness of the related transfer, be required to provide
all the forms and statements required pursuant to this Section 5.4(b),
provided that in the case of a Participant such Participant shall furnish all
such required forms and statements to the Lender from which the related
participation shall have been purchased.

 

(c)           The
Borrower shall not be required to indemnify any Non-U.S. Lender, or to pay any
additional amounts to any Non-U.S. Lender, in respect of U.S. Federal
withholding tax pursuant to paragraph (a) above to the extent that (i) the
obligation to withhold amounts with respect to U.S. Federal withholding tax
existed on the date such Non-U.S. Lender became a party to this Agreement (or,
in the case of a Participant that is not organized under the laws of the United
States of America or a state thereof (a “Non-U.S. Participant”), on the
date such Non-U.S. Participant became a Participant hereunder); provided,
however, that this clause (i) shall not apply to the extent that (x) the
indemnity payments or additional amounts any Lender (or Participant) would be
entitled to receive (without regard to this clause (i)) do not exceed the
indemnity payment or additional amounts that the person making the assignment,
participation or transfer to such Lender (or Participant) would have been
entitled to receive in the absence of such assignment, participation or
transfer, or (y) such assignment, participation or transfer had been
requested by the Borrower or, (ii) the obligation to pay such additional
amounts would not have arisen but for a failure by such Non-U.S. Lender or
Non-U.S. Participant to comply with the provisions of paragraph (b) above
or (iii) any of the representations or certifications made by a Non-U.S.
Lender or Non-U.S. Participant pursuant to paragraph (b) above are
incorrect at the time a payment hereunder is made, other than by reason of any
change in treaty, law or regulation having effect after the date such
representations or certifications were made.

 

(d)           If the
Borrower determines in good faith that a reasonable basis exists for contesting
any taxes for which indemnification has been demanded hereunder, the relevant
Lender or the Administrative Agent, as applicable, shall cooperate with such
Borrower in challenging such taxes at Borrower’s expense if so requested by
Borrower.  If any Lender or the
Administrative Agent receives a refund of a tax for which a payment has been
made by the 

 

 

66

 

Borrower
pursuant to this Agreement, which refund in the good faith judgment of such
Lender or the Administrative Agent, as the case may be, is attributable to such
payment made by such Borrower, then such Lender or the Administrative Agent, as
the case may be, shall reimburse the Borrower for such amount (together with
any interest received thereon) as such Lender or the Administrative Agent, as
the case may be, reasonably determines to be the proportion of the refund as
will leave it, after such reimbursement, in no better or worse position than it
would have been in if the payment had not been required.  Any Lender or the Administrative Agent shall
claim any refund that it determines is available to it, unless it concludes in
its reasonable discretion that it would be adversely affected by making such a
claim.  Neither any Lender nor the
Administrative Agent shall be obliged to disclose any information regarding its
tax affairs or computations to the Borrower in connection with this
paragraph (d) or any other provision of this Section 5.4.

 

(e)           Each
Lender represents and agrees that, on the date hereof and at all times during
the term of this Agreement, it is not and will not be a conduit entity
participating in a conduit financing arrangement (as defined in Section 7701(1) of
the Code and the regulations thereunder) with respect to the Borrowings
hereunder unless the Borrower has consented to such arrangement prior thereto.

 

5.5           Computations
of Interest and Fees.  (a) 
Interest on Eurodollar Loans and, except as provided in the next succeeding
sentence, ABR Loans shall be calculated on the basis of a 360-day year for the
actual days elapsed.  Interest on ABR
Loans in respect of which the rate of interest is calculated on the basis of
the Prime Rate and interest on overdue interest shall be calculated on the
basis of a 365- (or 366-, as the case may be) day year for the actual days
elapsed.

 

(b)           Fees and
Letters of Credit Outstanding shall be calculated on the basis of a 365- (or
366-, as the case may be) day year for the actual days elapsed.

 

5.6           Limit
on Rate of Interest.  (a)  No
Payment shall exceed Lawful Rate. 
Notwithstanding any other term of this Agreement, the Borrower shall not
be obliged to pay any interest or other amounts under or in connection with
this Agreement in excess of the amount or rate permitted under or consistent
with any applicable law, rule or regulation.

 

(b)           Payment
at Highest Lawful Rate.  If the
Borrower is not obliged to make a payment which it would otherwise be required
to make, as a result of Section 5.6(a), the Borrower shall make such payment
to the maximum extent permitted by or consistent with applicable laws, rules and
regulations.

 

(c)           Adjustment
if any Payment exceeds Lawful Rate. 
If any provision of this Agreement or any of the other Credit Documents
would obligate the Borrower to make any payment of interest or other amount
payable to any Lender in an amount or calculated at a rate which would be
prohibited by any applicable law, rule or regulation, then notwithstanding
such provision, such amount or rate shall be deemed to have been adjusted with
retroactive effect to the maximum amount or rate of interest, as the case may
be, as would not be so prohibited by law (in the case of the Borrower), such
adjustment to be effected, to the extent necessary, as follows:

 

 

67

 

 

(i)            firstly,
by reducing the amount or rate of interest required to be paid by the Borrower
to the affected Lender under Section 2.8; and

 

(ii)           thereafter,
by reducing any fees, commissions, premiums and other amounts required to be
paid by the Borrower to the affected Lender.

 

Notwithstanding the foregoing, and after
giving effect to all adjustments contemplated thereby, if any Lender shall have
received from the Borrower an amount in excess of the maximum permitted by any
applicable law, rule or regulation, then the Borrower shall be entitled,
by notice in writing to the Administrative Agent, to obtain reimbursement from
such Lender in an amount equal to such excess, and pending such reimbursement,
such amount shall be deemed to be an amount payable by such Lender to the
Borrower.

 

SECTION 6.           Conditions Precedent to Effective
Date

 

The occurrence of the borrowing of Tranche D Term
Loans under this Agreement is subject to the satisfaction of the following
conditions precedent:

 

6.1           Credit
Documents.  The Administrative Agent
shall have received:

 

(a)           this
Agreement, executed and delivered by (i) a duly authorized officer of each
of Holdings and the Borrower, (ii) each Agent, (iii) each Term Lender
that is not a Continuing Lender, (iv) the Administrative Agent on behalf
of each Continuing Lender that has executed and delivered a Lender Consent
Letter  agreeing to the convert all or a
portion of such Lender’s Original Term Loans to Tranche D Term Loans; and

 

(b)           the Second
Restatement Reaffirmation Agreement, executed and delivered by a duly
authorized officer of each of Holdings, the Borrower and each other Guarantor
as of the Effective Date.

 

6.2           Collateral.  All documents and instruments, including
Uniform Commercial Code or other applicable personal property security
financing statements, required to be filed, registered or recorded to continue
the Liens intended to be continued by the Security Documents, and with the
priority required by the Security Documents shall have been filed, registered
or recorded or delivered to the Collateral Agent for filing, registration or
recording.

 

6.3           Legal
Opinions.  The Administrative Agent
shall have received the following executed legal opinions:

 

(a)           the legal
opinion of Simpson Thacher & Bartlett LLP, special New York counsel to
Holdings, the Borrower and its Subsidiaries, substantially in the form of Exhibit G-1;

 

(b)           the legal
opinion of Ropes & Gray LLP, special Massachusetts counsel to LPL
Holdings, Inc., substantially in the form of Exhibit G-2;

 

(c)           the legal
opinion of Kirkpatrick & Lockhart Preston Gates Ellis LLP, special HUD
regulatory counsel to the Borrower and its Subsidiaries, substantially in the
form of Exhibit G-4; and

 

68

 

(d)           the legal
opinion of Bingham McCutcheon LLP, special broker-dealer regulatory counsel to
the Borrower and its Subsidiaries, substantially in the form of Exhibit G-5.

 

6.4           No
Defaults; Representations and Warranties. 
After giving effect to each Credit Event occurring on the Effective
Date, and the other transactions contemplated hereby to occur on or prior to
the Effective Date, (a) no Default or Event of Default shall have occurred
and be continuing and (b) all representations and warranties made on the
Effective Date by any Credit Party contained herein or in the other Credit
Documents shall be true and correct as of the Effective Date (except where such
representations and warranties expressly relate to an earlier date, in which
case such representations and warranties shall have been true and correct as of
such earlier date).

 

6.5           Consent.  (a)  
The Administrative Agent shall have received written consents from the
Lenders (as defined in the Original Credit Agreement) which constitute Required
Lenders (as defined in the Original Credit Agreement) under the Original Credit
Agreement to the execution and delivery of this Agreement and the consummation
of the transactions contemplated hereby (it being agreed that the entering into
this Agreement by a Lender shall constitute such written consent); and

 

(b)           the
Administrative Agent shall have received reasonably satisfactory evidence that
the outstanding principal amount of, and all accrued and unpaid interest and
other amounts due and payable on, the Original Term Loans (except for
continuing indemnity obligations which survive the prepayment of such Original
Term Loans) shall have been paid in full with the proceeds of the Tranche D
Term Loans or by the Borrower.

 

6.6           Effective
Date Certificates.  The Administrative
Agent shall have received a certificate of each Person that is a Credit Party
as of the Effective Date, dated the Effective Date, substantially in the form
of Exhibit H, with appropriate insertions, executed by the President or
any Vice President and the Secretary or any Assistant Secretary of such Credit
Party, and attaching the documents referred to in Sections 6.7 and 6.8 (if
applicable).

 

6.7           Corporate
Proceedings.  The Administrative
Agent shall have received a copy of the resolutions, in form and substance
reasonably satisfactory to the Administrative Agent, of the Board of Directors
or other governing body, as applicable, of each Person that is a Credit Party
as of the Effective Date (or a duly authorized committee thereof) authorizing (a) the
execution, delivery and performance of the Credit Documents (and any agreements
relating thereto) to which it is a party and (b) in the case of the
Borrower, the extensions of credit contemplated hereunder; provided
that, in lieu of delivery of each of the resolutions set forth in this Section 6.7,
each applicable Credit Party may deliver a certificate executed by the
President or any Vice President of such Credit Party certifying that there have
been no material amendments to those resolutions previously delivered to the
Administrative Agent on the First Restatement Effective Date pursuant to Section 6.10
of the Original Credit Agreement.

 

6.8           Corporate
Documents.  The Administrative Agent
shall have received true and complete copies of the certificate of
incorporation and by laws (or equivalent organizational documents) of each
Person that is a Credit Party as of the Effective Date;

69

 

provided that, in lieu
of delivery of each of the documents set forth in this Section 6.8, each
applicable Credit Party may deliver a certificate executed by the President or
any Vice President of such Credit Party certifying that there have been no
material amendments to those documents previously delivered to the Administrative
Agent on the First Restatement Effective Date pursuant to Section 6.11 of
the Original Credit Agreement.

 

6.9           Fees
and Expenses.  The fees in the
amounts previously agreed in writing by the Agents and the Lenders to be
received on the Effective Date and all reasonable out-of-pocket expenses
(including the reasonable fees, disbursements and other charges of counsel) for
which invoices have been presented on or prior to the Effective Date shall have
been paid.

 

6.10         Solvency
Certificate.  The Administrative
Agent shall have received a certificate from the chief financial officer of the
Borrower in form, scope and substance reasonably satisfactory to Administrative
Agent, with appropriate attachments and demonstrating that after giving effect
to the transactions contemplated hereby, the Borrower and its Subsidiaries,
taken as a whole, are Solvent.

 

SECTION 7.           Additional Conditions Precedent

 

7.1           No
Default; Representations and Warranties. 
The agreement of each Lender to make any Loan requested to be made by it
on any date after the date of the initial Credit Event (excluding Mandatory
Borrowings) and the obligation of the Letter of Credit Issuer to issue Letters
of Credit on any date after the date of the Effective Date is subject to the
satisfaction of the condition precedent that at the time of each such Credit
Event and also after giving effect thereto (a) no Default or Event of
Default shall have occurred and be continuing and (b) all representations
and warranties made by any Credit Party contained herein or 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 Credit Event (except where such representations and warranties
expressly relate to an earlier date, in which case such representations and
warranties shall have been true and correct in all material respects as of such
earlier date).  The acceptance of the
benefits of each Credit Event shall constitute a representation and warranty by
each Credit Party to each of the Lenders that the conditions contained in this Section 7.1
have been met as of such date.

 

7.2           Notice
of Borrowing; Letter of Credit Request. 
(a)  Prior to the making of each Term Loan, each Revolving Credit
Loan (other than any Revolving Credit Loan made pursuant to Section 3.4(a))
and each Swingline Loan, the Administrative Agent shall have received a Notice
of Borrowing (whether in writing or by telephone) meeting the requirements of Section 2.3.

 

(b)                           Prior
to the issuance of each Letter of Credit, the Administrative Agent and the
Letter of Credit Issuer shall have received a Letter of Credit Request meeting
the requirements of Section 3.2(a).

 

 

70

SECTION 8.           Representations, Warranties and
Agreements

 

In order to induce the Lenders to enter into this
Agreement, make the Loans and issue or participate in Letters of Credit as
provided for herein, each of Holdings and the Borrower make the following representations
and warranties to, and agreements with, the Lenders, all of which shall survive
the execution and delivery of this Agreement, the making of the Loans and the
issuance of the Letters of Credit:

 

8.1           Corporate
Status.  Holdings, the Borrower and
each Material Subsidiary (a) is a duly organized and validly existing
corporation or other entity in good standing under the laws of the jurisdiction
of its organization and has the corporate or other organizational power and
authority to own its property and assets and to transact the business in which
it is engaged and (b) has duly qualified and is authorized to do business
and is in good standing in all jurisdictions where it is required to be so
qualified, except where the failure to be so qualified could not reasonably be
expected to result in a Material Adverse Effect.

 

8.2           Corporate
Power and Authority.  Each Credit
Party has the corporate or other organizational power and authority to execute,
deliver and carry out the terms and provisions of the Credit Documents to which
it is a party and has taken all necessary corporate or other organizational
action to authorize the execution, delivery and performance of the Credit
Documents to which it is a party.  Each Credit
Party has duly executed and delivered each Credit Document to which it is a
party and each such Credit Document constitutes the legal, valid and binding
obligation of such Credit Party enforceable in accordance with its terms,
subject to the effects of bankruptcy, insolvency, fraudulent conveyance,
reorganization and other similar laws relating to or affecting creditors’
rights generally and general principles of equity (whether considered in a
proceeding in equity or law).

 

8.3           No
Violation.  None of (a) the
execution, delivery and performance by any Credit Party of the Credit Documents
to which it is a party and compliance with the terms and provisions thereof, or
(b) the consummation of the other transactions contemplated hereby or
thereby on the relevant dates therefor will (i) contravene any applicable
provision of any material law, statute, rule, regulation, order, writ,
injunction or decree of any court or governmental instrumentality, (ii) result
in any breach 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 upon any of the property or assets of
any of the Borrower or any of the Restricted Subsidiaries (other than Liens
created under the Credit Documents) pursuant to, the terms of any material
indenture (including the Senior Unsecured Subordinated Note Indenture), loan
agreement, lease agreement, mortgage, deed of trust, agreement or other
material instrument to which Holdings, the Borrower or any of their Restricted
Subsidiaries is a party or by which they or any of their property or assets is
bound or (iii) violate any provision of the certificate of incorporation,
By-Laws or other constitutional documents of Holdings, the Borrower or any of
their Restricted Subsidiaries.

 

8.4           Litigation.  There are no actions, suits or proceedings
(including Environmental Claims) pending or, to the knowledge of Holdings,
threatened with respect to Holdings or any of its Subsidiaries that could
reasonably be expected to result in a Material Adverse Effect.

 

71

 

 

8.5           Margin
Regulations.  Neither the making of
any Loan hereunder nor the use of the proceeds thereof will violate the
provisions of Regulation T, U or X of the Board.

 

8.6           Governmental
Approvals.  Except as set forth in
Schedule 8.6, no order, consent, approval, license, authorization, or
validation of, or filing, recording or registration with, or exemption by, any
Governmental Authority is required to authorize or is required in connection
with (a) the execution, delivery and performance of any Credit Document or
(b) the legality, validity, binding effect or enforceability of any Credit
Document, except, in the case of either clause (a) or clause (b), the
failure to obtain or make any of the foregoing could not reasonably be expected
to have a Material Adverse Effect.

 

8.7           Investment
Company Act.  The Borrower is not an “investment
company” within the meaning of the Investment Company Act of 1940, as amended.

 

8.8           True
and Complete Disclosure.  (a) 
None of the factual information and data (taken as a whole) furnished by
Holdings, any of its Subsidiaries or any of their respective authorized
representatives in writing to any Agent or any Lender on or before the Effective
Date (including (i) the Confidential Information Memorandum and (ii) all
information contained in the Credit Documents) for purposes of or in connection
with this Agreement or any transaction contemplated herein contained any untrue
statement of material fact or omitted to state any material fact necessary to
make such information and data (taken as a whole) not materially misleading at
such time in light of the circumstances under which such information or data
was furnished, it being understood and agreed that for purposes of this Section 8.8(a),
such factual information and data shall not include projections and pro forma
financial information.

 

(b)           The
projections and pro forma financial information contained in the information
and data referred to in paragraph (a) above were prepared in good
faith based upon assumptions believed by such Persons to be reasonable at the
time made, it being recognized by the Lenders that such projections as to
future events are not to be viewed as facts and that actual results during the
period or periods covered by any such projections may differ from the projected
results.

 

8.9           Financial
Condition; Financial Statements.  The
Historical Financial Statements, in each case present or will, when provided,
present fairly in all material respects the financial position and results of
operations of the Borrower and its Subsidiaries at the respective dates of such
information and for the respective periods covered thereby subject, in the case
of the unaudited financial information, to changes resulting from audit, normal
year end audit adjustments and the absence of footnotes.  The Historical Financial Statements have been
prepared in accordance with GAAP consistently applied except to the extent
provided in the notes thereto.  There has
been no Material Adverse Change since December 31, 2004, other than solely
as a result of changes in general economic conditions.

 

8.10         Tax
Returns and Payments, etc.  Holdings
and its Subsidiaries have filed all Federal income tax returns and all other
material tax returns, domestic and foreign, required to be filed by them and
have paid all material taxes and assessments payable by them that have become
due, other than those not yet delinquent or contested in good faith.  Holdings

 

 

72

 

and its Subsidiaries have
paid, or have provided adequate reserves (in the good faith judgment of the
management of the Borrower) in accordance with GAAP for the payment of, all
material Federal, state and foreign income taxes applicable for all prior
fiscal years and for the current fiscal year to the Effective Date.

 

8.11         Compliance
with ERISA.  Each Plan is in
compliance with ERISA, the Code and any Applicable Law; no Reportable Event has
occurred (or is reasonably likely to occur) with respect to any Plan; no Plan
is insolvent or in reorganization (or is reasonably likely to be insolvent or
in reorganization), and no written notice of any such insolvency or
reorganization has been given to any of the Borrower, any Subsidiary thereof or
any ERISA Affiliate; no Plan (other than a multiemployer plan) has an
accumulated or waived funding deficiency (or is reasonably likely to have such
a deficiency); none of Holdings, any Subsidiary thereof or any ERISA Affiliate has
incurred (or is reasonably likely expected to incur) any liability to or on
account of a Plan pursuant to Section 409, 502(i), 502(l), 515, 4062,
4063, 4064, 4069, 4201 or 4204 of ERISA or Section 4971 or 4975 of the
Code or has been notified in writing that it will incur any liability under any
of the foregoing Sections with respect to any Plan; no proceedings have been
instituted (or are reasonably likely to be instituted) to terminate or to
reorganize any Plan or to appoint a trustee to administer any Plan, and no
written notice of any such proceedings has been given to any of Holdings, any
Subsidiary thereof or any ERISA Affiliate; and no lien imposed under the Code
or ERISA on the assets of any of the Borrower, any Subsidiary thereof or any
ERISA Affiliate exists (or is reasonably likely to exist) nor has Holdings, any
Subsidiary thereof or any ERISA Affiliate been notified in writing that such a
lien will be imposed on the assets of any of Holdings, any Subsidiary thereof
or any ERISA Affiliate on account of any Plan, except to the extent that a
breach of any of the representations, warranties or agreements in this Section 8.11
would not result, individually or in the aggregate, in an amount of liability
that would be reasonably likely to have a Material Adverse Effect or relates to
any matter disclosed in the financial statements of the Borrower contained in
the Confidential Information Memorandum. 
No Plan (other than a multiemployer plan) has an Unfunded Current
Liability that would, individually or when taken together with any other
liabilities referenced in this Section 8.11, be reasonably likely to have
a Material Adverse Effect.  With respect
to Plans that are multiemployer plans (as defined in Section 3(37) of
ERISA), the representations and warranties in this Section 8.11, other
than any made with respect to (a) liability under Section 4201 or
4204 of ERISA or (b) liability for termination or reorganization of such
Plans under ERISA, are made to the best knowledge of the Borrower.

 

8.12         Subsidiaries.  On the Effective Date, Holdings does not have
any Subsidiaries other than the Subsidiaries listed on Schedule 8.12.  Schedule 8.12 describes the direct and
indirect ownership interest of Holdings in each Subsidiary as of the Effective
Date.  To the knowledge of Holdings,
after due inquiry, each Material Subsidiary and Specified Subsidiary as of the
Effective Date has been so designated on Schedule 8.12.

 

8.13         Patents,
etc.  The Borrower and each of the
Restricted Subsidiaries have obtained all patents, trademarks, servicemarks,
trade names, copyrights, licenses and other rights, free from burdensome
restrictions, that are necessary for the operation of their respective
businesses as currently conducted and as proposed to be conducted, except where
the failure to obtain any such rights could not reasonably be expected to have
a Material Adverse Effect.

 

73

 

8.14         Environmental
Laws.  (a)  Except as could not
reasonably be expected to have a Material Adverse Effect, (i) Holdings and
each of its Subsidiaries are in compliance with all Environmental Laws in all
jurisdictions in which Holdings and each of its Subsidiaries are currently
doing business (including having obtained all material permits required under Environmental
Laws) and (ii) neither Holdings nor any of its Subsidiaries has become
subject to any Environmental Claim or any other liability under any
Environmental Law.

 

(b)           Neither
Holdings nor any of its Subsidiaries has treated, stored, transported, released
or disposed of Hazardous Materials at or from any currently or formerly owned
Real Estate or facility relating to its business in a manner that could
reasonably be expected to have a Material Adverse Effect.

 

8.15         Properties,
Assets and Rights.  Holdings and each
of its Subsidiaries have good and marketable title to or valid leasehold
interest in all properties that are necessary for the operation of their
respective businesses as currently conducted and as proposed to be conducted,
free and clear of all Liens (other than Liens permitted by Section 10.2)
and except where the failure to have such good title could not reasonably be
expected to have a Material Adverse Effect. 
As of the Effective Date, Holdings and each of its Subsidiaries possess
or have the right to use, under contract or otherwise, all assets and rights
that are material to the operation of their respective businesses as currently
conducted and as proposed to be conducted.

 

8.16         Certain
Fees.  Except with respect to the
Arranger and the Agents, no broker’s or finder’s fee or commission will be
payable by any Credit Party with respect hereto or any of the transactions
contemplated hereby.

 

8.17         Solvency.  On the Effective Date after giving effect to
the transactions contemplated hereby, the Credit Parties, on a consolidated
basis, are Solvent.

 

8.18         Capital Stock.  The Capital Stock of each of
Holdings and its Domestic Subsidiaries has been duly authorized and validly
issued and, with respect to Holdings, the Borrower and each Domestic Subsidiary
that is a corporation, is fully paid and non-assessable.  Except as set forth on Schedule 8.18, as of
the Effective Date, there is no existing option, warrant, call, right,
commitment or other agreement to which Holdings or any of its Subsidiaries is a
party requiring, and there is no membership interest or other Capital Stock of
Holdings or any of its Subsidiaries outstanding which upon conversion or
exchange would require, the issuance by Holdings or any of its Subsidiaries of
any additional membership interests or other Capital Stock of Holdings or any
of its Subsidiaries or other Securities convertible into, exchangeable for or
evidencing the right to subscribe for or purchase, a membership interest or
other Capital Stock of Holdings or any of its Subsidiaries.

 

8.19         No
Defaults.  Neither Holdings nor any
of its Subsidiaries is in default in the performance, observance or fulfillment
of any of the obligations, covenants or conditions contained in any of its
Contractual Obligations (other than Contractual Obligations in respect of
Indebtedness), and no condition exists which, with the giving of notice or the
lapse of time or both, could constitute such a default, except where the
consequences, direct or indirect, of such default or defaults, if any, could
not reasonably be expected to have a Material Adverse Effect.

 

 

74

 

 

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

 

8.21         Senior
Indebtedness.  The Obligations constitute “Senior Indebtedness”
under and as defined in the Senior Unsecured Subordinated Indenture.  The obligations of each Guarantor under the
Guarantee constitute “Guarantor Senior Indebtedness” of such Guarantor under
and as defined in the Senior Unsecured Subordinated Indenture.

 

8.22         Patriot
Act.  To the extent applicable, as of
the Effective Date, each Credit Party is in compliance, in all material
respects, with the (i) Trading with the Enemy Act, as amended, and each of
the foreign assets control regulations of the United States Treasury Department
(31 CFR, Subtitle B, Chapter V, as amended) and any other enabling legislation
or executive order relating thereto, and (ii) Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism (USA Patriot Act of 2001).  No
part of the proceeds of the Loans will be used, directly or indirectly, for any
payments to any governmental official or employee, political party, official of
a political party, candidate for political office, or anyone else acting in an
official capacity, in order to obtain, retain or direct business or obtain any improper
advantage, in violation of the United States Foreign Corrupt Practices Act of
1977, as amended.

 

SECTION 9.           Affirmative Covenants

 

Each of Holdings and the Borrower hereby covenants
and agrees that on the Closing Date and thereafter, until the Commitments and
all Letters of Credit have terminated (unless such Letters of Credit have been
collateralized on terms and conditions satisfactory to the Letter of Credit
Issuer following the termination of the Commitments) and the Loans and Unpaid
Drawings, together with interest, Fees and all other Obligations (excluding
contingent indemnification obligations or Obligations with respect to Hedging
Agreements) incurred hereunder, are paid in full:

 

9.1           Information
Covenants.  The Borrower will furnish
to the Administrative Agent for further delivery to each Lender:

 

(a)           Annual
Financial Statements.  As soon as
available and in any event on or before the date on which such financial
statements are required to be filed with the SEC (or, if such financial statements
are not required to be filed with the SEC, on or before the date that is 90
days after the end of each such fiscal year), the consolidated balance sheet of
the Borrower and its Subsidiaries as at the end of such fiscal year, and the
related consolidated statement of operations and cash flows for such fiscal
year, setting forth comparative consolidated figures for the preceding fiscal
year, and certified by independent certified public accountants of recognized
national standing whose opinion shall not be qualified as to the scope of audit
or as to the status

 

 

75

 

of the
Borrower or any of the Material Subsidiaries as a going concern, together in
any event with a certificate of such accounting firm stating that in the course
of its regular audit of the business of the Borrower and the Material
Subsidiaries, which audit was conducted in accordance with generally accepted
auditing standards, such accounting firm has obtained no knowledge of any
Default or Event of Default relating to Section 10.9 or 10.10 that has
occurred and is continuing or, if in the opinion of such accounting firm such a
Default or Event of Default has occurred and is continuing, a statement as to
the nature thereof.  Notwithstanding the
foregoing, the obligations in this clause (a) may be satisfied with
respect to financial information of the Borrower and the Restricted
Subsidiaries by furnishing (A) the applicable financial statements of
Holdings (or any direct or indirect parent of Holdings) or (B) the
Borrower’s or Holdings’ (or any direct or indirect parent thereof), as
applicable, Form 10-K or 10-Q, as applicable, filed with the SEC; provided, that, with respect to each of clauses (A) and (B), to the
extent such information relates to Holdings (or a parent thereof), such
information is accompanied by consolidating information that explains in
reasonable detail the differences between the information relating to Holdings
(or such parent), on the one hand, and the information relating to the Borrower
and the Restricted Subsidiaries on a standalone basis, on the other hand.

 

(b)           Quarterly
Financial Statements.  As soon as
available and in any event on or before the date on which such financial
statements are required to be filed with the SEC with respect to each of the
first three quarterly accounting periods in each fiscal year of the Borrower
(or, if such financial statements are not required to be filed with the SEC, on
or before the date that is 45 days after the end of each such quarterly
accounting period), the consolidated balance sheet of the Borrower and its
Subsidiaries as at the end of such quarterly period and the related
consolidated statement of operations for such quarterly accounting period and
for the elapsed portion of the fiscal year ended with the last day of such
quarterly period, and the related consolidated statement of cash flows for the
elapsed portion of the fiscal year ended with the last day of such quarterly
period, and setting forth comparative consolidated figures for the related
periods in the prior fiscal year or, in the case of such consolidated balance
sheet, for the last day of the prior fiscal year, all of which shall be
certified by an Authorized Officer of the Borrower, subject to changes
resulting from audit, normal year-end audit adjustments and the absence of
footnotes.  Notwithstanding the
foregoing, the obligations in this clause (b) may be satisfied with
respect to financial information of the Borrower and the Restricted
Subsidiaries by furnishing (A) the applicable financial statements of
Holdings (or any direct or indirect parent of Holdings) or (B) the
Borrower’s or Holdings’ (or any direct or indirect parent thereof), as
applicable, Form 10-K or 10-Q, as applicable, filed with the SEC; provided,
that, with respect to each of clauses (A) and (B), to the extent such
information relates to Holdings (or a parent thereof), such information is
accompanied by consolidating information that explains in reasonable detail the
differences between the information relating to Holdings (or such parent), on
the one hand, and the information relating to the Borrower and the Restricted
Subsidiaries on a standalone basis, on the other hand.

 

(c)           Budgets.  Within 60 days after the commencement of each
fiscal year of the Borrower, a budget of the Borrower and its Subsidiaries in
reasonable detail for the fiscal year as customarily prepared by management of
the Borrower for its internal use consistent in scope with the financial
statements provided pursuant to Section 9.1(a), setting forth the
principal assumptions upon which such budget is based.

 

76

 

(d)           Officer’s
Certificates.  At the time of the
delivery of the financial statements provided for in Sections 9.1(a) and
(b), a certificate of an Authorized Officer of the Borrower to the effect that
no Default or Event of Default exists or, if any Default or Event of Default
does exist, specifying the nature and extent thereof, which certificate shall
set forth (i) the calculations required to establish whether the Borrower
and its Subsidiaries were in compliance with the provisions of Sections 10.9
and 10.10 as at the end of such fiscal year or period, as the case may be, (ii) a
specification of any change in the identity of the Restricted Subsidiaries,
Unrestricted Subsidiaries and Foreign Subsidiaries as at the end of such fiscal
year or period, as the case may be, from the Restricted Subsidiaries,
Unrestricted Subsidiaries and Foreign Subsidiaries, respectively, provided to the
Lenders on the Effective Date or the most recent fiscal year or period, as the
case may be, (iii) the then applicable Status and (iv) the amount of
any Pro Forma Adjustment not previously set forth in a Pro Forma Adjustment
Certificate or any change in the amount of a Pro Forma Adjustment set forth in
any Pro Forma Adjustment Certificate previously provided and, in either case,
in reasonable detail, the calculations and basis therefor.  At the time of the delivery of the financial
statements provided for in Section 9.1(a), (i) a certificate of an
Authorized Officer of the Borrower setting forth in reasonable detail the
calculation of the Available Amount as at the end of the fiscal year to which
such financial statements relate and (ii) a certificate of an Authorized
Officer and the chief legal officer of the Borrower setting forth the
information required pursuant to Section 2 of the Perfection Certificate
or confirming that there has been no change in such information since the
Closing Date or the date of the most recent certificate delivered pursuant to
this subsection (d), as the case may be.

 

(e)           Notice
of Default or Litigation.  Promptly
after an Authorized Officer of the Borrower or any of its Subsidiaries obtains
knowledge thereof, notice of (i) the occurrence of any event that
constitutes a Default or an Event of Default, which notice shall specify the
nature thereof, the period of existence thereof and what action the Borrower
proposes to take with respect thereto, and (ii) any litigation or governmental
proceeding pending against the Borrower or any of its Subsidiaries that could
reasonably be expected to result in a Material Adverse Effect.

 

(f)            Environmental
Matters.  Promptly after obtaining
knowledge of any one or more of the following environmental matters, unless
such environmental matters would not, individually or when aggregated with all
other such matters, be reasonably expected to result in a Material Adverse
Effect:

 

(i)            any
pending or threatened Environmental Claim against Holdings or any of its
Subsidiaries or any Real Estate;

 

(ii)           any
condition or occurrence on any Real Estate that (x) results in
noncompliance by Holdings or any of its Subsidiaries with any applicable
Environmental Law or (y) could reasonably be anticipated to form the basis
of an Environmental Claim against Holdings or any of its Subsidiaries or any
Real Estate;

 

(iii)          any
condition or occurrence on any Real Estate that could reasonably be anticipated
to cause such Real Estate to be subject to any restrictions on the

 

 

77

 

ownership,
occupancy, use or transferability of such Real Estate 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 Estate.

 

All such notices shall describe in reasonable
detail the nature of the claim, investigation, condition, occurrence or
removal, remedial action and the response thereto.  The term “Real Estate” shall mean land,
buildings and improvements owned or leased by Holdings or any of its
Subsidiaries, but excluding all operating fixtures and equipment, whether or
not incorporated into improvements.

 

(g)           Other
Information.  Promptly upon filing
thereof, copies of any filings (including on Form 10-K, 10-Q or 8-K) or
registration statements with, and reports to, the SEC or any analogous
Government Authority in any relevant jurisdiction by Holdings or any of its
Subsidiaries (other than amendments to any registration statement (to the
extent such registration statement, in the form it becomes effective, is
delivered to the Administrative Agent for further delivery to the Lenders),
exhibits to any registration statement and, if applicable, any registration
statements on Form S-8) and copies of all financial statements, proxy
statements, notices and reports that Holdings or any of its Subsidiaries shall
send to the holders of any publicly issued debt of Holdings and/or any of its
Subsidiaries (including the Senior Unsecured Subordinated Notes (whether
publicly issued or not)) in their capacity as such holders (in each case to the
extent not theretofore delivered to the Administrative Agent for further
delivery to the Lenders pursuant to this Agreement) and, with reasonable
promptness, such other information (financial or otherwise) as the
Administrative Agent on its own behalf or on behalf of any Lender may
reasonably request in writing from time to time.

 

(h)           Pro
Forma Adjustment Certificate.  Not
later than any date on which financial statements are delivered with respect to
any six-quarter period in which a Pro Forma Adjustment is made as a result of
the consummation of the acquisition of any Acquired Entity or Business by the
Borrower or any Restricted Subsidiary for which there shall be a Pro Forma
Adjustment, a certificate of an Authorized Officer of the Borrower setting
forth the amount of such Pro Forma Adjustment and, in reasonable detail, the
calculations and basis therefor.

 

9.2           Books,
Records and Inspections.  Holdings
and the Borrower will, and will cause each of their Subsidiaries to, conduct
meetings with the Borrower (which meetings, unless an Event of Default has
occurred and is continuing, shall only occur once per calendar year and may be
conducted via teleconference), permit (to the extent that it is within such
party’s control to permit such inspection) officers and designated
representatives of the Administrative Agent or the Required Lenders
(coordinated through the Administrative Agent) to visit and inspect any of the properties
or assets of Holdings, the Borrower and any such Subsidiary in whomsoever’s
possession, and to examine the books of account of Holdings, the Borrower and
any such Subsidiary (other than materials protected by attorney-client
privilege) and discuss the affairs, finances and accounts of Holdings, the
Borrower and any such Subsidiary with, and be advised as to the same by, its
and their officers and independent accountants (so long as the Borrower is
afforded an opportunity to be present at such discussion with such

 

78

 

independent accountants),
all at such reasonable times and intervals and to such reasonable extent as the
Administrative Agent or the Required Lenders may reasonably request.

 

9.3           Maintenance
of Insurance.  Holdings and the
Borrower will, and will cause each of the Material Subsidiaries to, at all
times maintain in full force and effect, with insurance companies that the
Borrower believes (in the good faith judgment of the management of the
Borrower) are financially sound and responsible at the time the relevant
coverage is placed or renewed, insurance in at least such amounts and against
at least such risks (and with such risk retentions) as are usually insured
against in the same general area by companies engaged in the same or similar
business as that of the Borrower and its Subsidiaries; and will furnish to the
Administrative Agent for further delivery to the Lenders, upon written request
from the Administrative Agent, information presented in reasonable detail as to
the insurance so carried.

 

9.4           Payment
of Taxes.  Holdings and the Borrower
will pay and discharge, and will cause each of their respective 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 material penalties attach thereto,
and all lawful material claims that, if unpaid, could reasonably be expected to
become a material Lien upon any properties of Holdings, the Borrower or any of
the Restricted Subsidiaries; provided, that neither Holdings, the
Borrower nor any of their Subsidiaries shall be required to pay any such tax,
assessment, charge, levy or claim that is being contested in good faith and by
proper proceedings if it has maintained adequate reserves (in the good faith
judgment of the management of the Borrower) with respect thereto in accordance
with GAAP.

 

9.5           Consolidated
Corporate Franchises.  Holdings and
the Borrower will do, and will cause each Material Subsidiary to do, or cause
to be done, all things necessary to preserve and keep in full force and effect
its existence, corporate rights and authority, except to the extent that the
failure to do so could not reasonably be expected to have a Material Adverse
Effect; provided, however, that Holdings, the Borrower and its
Subsidiaries may consummate any transaction permitted under Section 10.3,
10.4 or 10.5.

 

9.6           Compliance
with Statutes.  Holdings and the
Borrower will, and will cause each of their Subsidiaries to, comply with all
applicable laws, rules, regulations and orders (including Environmental Laws
and permits required thereunder), except to the extent the failure to do so
could not reasonably be expected to have a Material Adverse Effect.

 

9.7           ERISA.  Promptly after Holdings, the Borrower or any
of their Subsidiaries or any ERISA Affiliate knows or has reason to know of the
occurrence of any of the following events that, individually or in the aggregate
(including in the aggregate such events previously disclosed or exempt from
disclosure hereunder, to the extent the liability therefor remains
outstanding), would be reasonably likely to have a Material Adverse Effect, the
Borrower will deliver to each of the Lenders a certificate of an Authorized
Officer or any other senior officer of the Borrower setting forth 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
(required, proposed or otherwise) given to or filed with or by the Borrower,
such Subsidiary, such ERISA Affiliate, the PBGC, a Plan participant (other than
notices relating to an individual participant’s benefits) or the Plan
administrator with respect

 

 

79

 

thereto: that a Reportable
Event has occurred; that an accumulated funding deficiency has been incurred or
an application is to be made to the Secretary of the Treasury 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 with respect to a Plan; that a Plan having an Unfunded Current
Liability has been or is to be terminated, reorganized, partitioned or declared
insolvent under Title IV of ERISA (including the giving of written notice
thereof); that a Plan has an Unfunded Current Liability that has or will result
in a lien under ERISA or the Code; that proceedings will be or have been
instituted to terminate a Plan having an Unfunded Current Liability (including
the giving of written notice thereof); that a proceeding has been instituted
against the Borrower, a Subsidiary thereof or an ERISA Affiliate pursuant to Section 515
of ERISA to collect a delinquent contribution to a Plan; that the PBGC has
notified the Borrower, any Subsidiary thereof or any ERISA Affiliate of its
intention to appoint a trustee to administer any Plan; that the Borrower, any
Subsidiary thereof or any ERISA Affiliate has failed to make a required
installment or other payment pursuant to Section 412 of the Code with
respect to a Plan; or that the Borrower, any Subsidiary thereof or any ERISA
Affiliate has incurred or will incur (or has been notified in writing that it
will incur) any liability (including any 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 or 4204 of ERISA or Section 4971 or 4975 of
the Code.

 

9.8           Good
Repair.  Each of Holdings and the
Borrower will, and will cause each of their Restricted Subsidiaries to, ensure
that its properties and equipment used or useful in its business in whomsoever’s
possession they may be to the extent that it is within the control of such
party to cause same, are kept in good repair, working order and condition,
normal wear and tear excepted, and that from time to time there are made in
such properties and equipment all needful and proper repairs, renewals,
replacements, extensions, additions, betterments and improvements thereto, to
the extent and in the manner customary for companies in the same or similar
business as that of the Borrower and its Subsidiaries and consistent with third
party leases, except in each case to the extent the failure to do so could not
be reasonably expected to have a Material Adverse Effect.

 

9.9           Transactions
with Affiliates.  Holdings and the
Borrower will conduct, and cause each of the Restricted Subsidiaries to
conduct, all transactions with any of its Affiliates (other than the
transactions between and among Holdings, the Borrower and the Restricted
Subsidiaries or any Person that becomes a Restricted Subsidiary as a result of
such transaction) on terms that are substantially as favorable to Holdings, the
Borrower or such Restricted Subsidiary as it would obtain in a comparable arm’s-length
transaction with a Person that is not an Affiliate; provided, that the
foregoing restrictions shall not apply to (a) the payment of fees and
expenses related to the UVEST Acquisition, the Pacific Life Acquisition and, in
each case, the transactions contemplated thereby, (b) the issuance of
Capital Stock to the management of Holdings, the Borrower or any of its
Subsidiaries in connection with the UVEST Acquisition, the Transactions (as
defined in the 2005 Credit Agreement), the Pacific Life Acquisition and, in
each case, the transactions contemplated thereby, (c) the payment of
customary management, consulting and monitoring fees to the Sponsors in an
aggregate amount in any fiscal year not to exceed $5,000,000 plus all
reasonable out-of-pocket expenses and customary indemnities related to any such
activities, (d) employment and severance arrangements between Holdings,
the Borrower and the Restricted Subsidiaries and their respective directors,
officers and employees.

80

 

in the ordinary course of business, (e) payments by Holdings (and
any direct or indirect parent thereof), the Borrower and the Restricted
Subsidiaries pursuant to any tax sharing agreements among Holdings (and any
such parent thereof), the Borrower and the Restricted Subsidiaries on customary
terms, (f) the payment of customary fees and reasonable out of pocket
costs and expenses to, and indemnities provided on behalf of, directors,
officers and employees  of Holdings, the
Borrower and the Restricted Subsidiaries, (g) transactions (i) with
customers who are Affiliates in the ordinary course of business and consistent
with past practice as of the date hereof and (ii) pursuant to permitted
agreements in existence on the Closing Date and set forth on Schedule 9.9 or
any amendment thereto to the extent such an amendment is not adverse to the
Lenders in any material respect, (h) transactions permitted under Section 10.6,
(i) in connection with the termination of management agreements with the
Sponsors, the payment of up to $20,000,000  in termination
fees thereunder to the Sponsors pursuant to the terms of such management
agreement, (j) customary contractual arrangements with financial advisors
to the extent any such financial advisor would be deemed to be an “Affiliate,”;
(k) customary payments made by Holdings, the Borrower or any Restricted
Subsidiary to the Sponsors for any financial advisory, financing, underwriting
or placement services or in respect of other investment banking activities
(including in connection with acquisitions or divestitures), which payments are
approved by a majority of the disinterested members of the board of directors
of Holdings or the Borrower, in good faith and (l) to the extent expressly
permitted under Section 10, payments or loans (or cancellation of loans)
to employees of the Borrower, Holdings or any Restricted  Subsidiary.

 

9.10         End
of Fiscal Years; Fiscal Quarters. 
The Borrower will, for financial reporting purposes, cause (a) each
of its, and each of its Subsidiaries’, fiscal years to end on December 31
of each year and (b) each of its, and each of its Subsidiaries’, fiscal
quarters to end on dates consistent with such fiscal year-end and the Borrower’s
past practice; provided, however, that the Borrower may, upon
written notice to the Administrative Agent, change the financial reporting
convention specified above to any other financial reporting convention
reasonably acceptable to the Administrative Agent, in which case the Borrower
and the Administrative Agent will, and are hereby authorized by the Lenders to,
make any adjustments to this Agreement that are necessary in order to reflect
such change in financial reporting.

 

9.11         Additional
Guarantors and Grantors.  Subject to
any applicable limitations set forth in the Guarantee or the Security
Agreement, as applicable, the Borrower will cause (i) any direct or
indirect Domestic Subsidiary (other than any Unrestricted Subsidiary, any
direct or indirect Domestic Subsidiary of a Foreign Subsidiary or any Excluded
Subsidiary) formed or otherwise purchased or acquired after the Effective Date
(including pursuant to a Permitted Acquisition), and (ii) any Subsidiary
of the Borrower (other than any Unrestricted Subsidiary, any direct or indirect
Domestic Subsidiary of a Foreign Subsidiary or any Excluded Subsidiary) that is
not a Domestic Subsidiary on the Closing Date hereof but subsequently becomes a
Domestic Subsidiary (other than any Unrestricted Subsidiary, any direct or
indirect Domestic Subsidiary of a Foreign Subsidiary or any Excluded
Subsidiary), in each case to execute a supplement to each of the Guarantee and
the Security Agreement, substantially in the form of Annex B or Annex 1, as
applicable, to the respective agreement in order to become a Guarantor under
the Guarantee and a grantor under the Security Agreement.

 

81

 

9.12         Pledges
of Additional Stock and Evidence of Indebtedness.  Subject to any applicable limitations set
forth in the Pledge Agreement, Holdings and the Borrower will pledge, and, if
applicable, will cause each Domestic Subsidiary (other than any Unrestricted
Subsidiary, any direct or indirect Domestic Subsidiary of a Foreign Subsidiary
or any Excluded Subsidiary) to pledge, to the Collateral Agent for the benefit
of the Secured Parties, (i) all the Capital Stock of each Domestic
Subsidiary (other than any Unrestricted Subsidiary, any direct or indirect
Domestic Subsidiary of a Foreign Subsidiary, PTC Holdings, Inc. or The
Private Trust Company, N.A.) and 65% of the issued and outstanding Capital
Stock of each Foreign Subsidiary directly held by any Credit Party, in each
case, formed or otherwise purchased or acquired after the Effective Date, in
each case pursuant to a supplement to the Pledge Agreement substantially in the
form of Annex A thereto, (ii) all evidences of Indebtedness in excess of
$5,000,000 received by any Credit Party in connection with any disposition of
assets pursuant to Section 10.4(d), in each case pursuant to a supplement
to the Pledge Agreement substantially in the form of Annex A thereto, and (iii) any
global promissory notes executed after the Closing Date evidencing Indebtedness
of Holdings and the Borrower and each of its Subsidiaries that is owing to any
Credit Party, in each case pursuant to a supplement to the Pledge Agreement in
the form of Annex A thereto.

 

9.13         Changes
in Business.  The Borrower and its
Subsidiaries, taken as a whole, will not fundamentally and substantively alter
the character of their business, taken as a whole, from the business conducted
by the Borrower and its Subsidiaries, taken as a whole, on the Closing Date and
other business activities incidental or related to any of the foregoing.

 

9.14         Further
Assurances.  (a)  Holdings and
the Borrower will, and will cause each other Credit Party to, execute any and
all further documents, financing statements, agreements and instruments, and
take all such further actions (including the filing and recording of financing
statements, fixture filings, mortgages, deeds of trust and other documents),
which may be required under any applicable law, or which the Administrative
Agent, the Collateral Agent or the Required Lenders may reasonably request, in
order to grant, preserve, protect and perfect the validity and priority of the
security interests created or intended to be created by the Security Agreement,
the Pledge Agreement or any Mortgage, all at the expense of Holdings and its
Subsidiaries.

 

(b)           Subject to
any applicable limitations set forth in the Security Agreement or any Mortgage,
if any assets (including any real estate or improvements thereto or any
interest therein) with a book value or fair market value in excess of
$3,000,000 are acquired by the Borrower or any other Credit Party after the
Closing Date (other than assets constituting Collateral under the Security
Agreement that become subject to the Lien of the Security Agreement upon
acquisition thereof or assets subject to a Lien granted pursuant to Section 10.2(c))
that are of the nature secured by the Security Agreement or any Mortgage, as
the case may be, the Borrower will notify the Administrative Agent (who shall
thereafter notify the Lenders) and the Collateral Agent thereof, and, if
requested by the Administrative Agent, the Collateral Agent or the Required
Lenders, the Borrower will cause such assets to be subjected to a Lien securing
the applicable Obligations and will take, and cause the other Credit Parties to
take, such actions as shall be necessary or reasonably requested by the
Administrative Agent or the Collateral Agent to grant and perfect such Liens
consistent with the applicable requirements of the Security Documents,
including actions described in paragraph (a) of this Section, all at the 

 

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expense of
the Credit Parties.  Any Mortgage
delivered to the Collateral Agent in accordance with the preceding sentence
shall be accompanied by (x) a policy or policies of title insurance issued
by a nationally recognized title insurance company insuring the Lien of each
Mortgage as a valid Lien (with the priority described therein) on the Mortgaged
Property described therein, free of any other Liens except as expressly
permitted by Section 10.2, together with such endorsements and reinsurance
as the Administrative Agent or the Collateral Agent may reasonably request and (y) an
opinion of local counsel to the Borrower (or in the event a Subsidiary of the
Borrower is the Mortgagor, to such Subsidiary) substantially in the form of the
local counsel opinion delivered on the Closing Date pursuant to Section 6.3(c) of
the 2005 Credit Agreement.

 

SECTION 10.         Negative Covenants

 

Each of Holdings and the Borrower hereby covenants
and agrees that on the Closing Date and thereafter, until the Commitments and
all Letters of Credit have terminated (unless such Letters of Credit have been
collateralized on terms and conditions satisfactory to the Letter of Credit
Issuer following the termination of the Commitments) and the Loans and Unpaid
Drawings, together with interest, Fees and all other Obligations (excluding
contingent indemnification obligations or Obligations with respect to Hedging
Agreements) incurred hereunder, are paid in full:

 

10.1         Limitation
on Indebtedness.  Holdings and the
Borrower will not, and will not permit any of the Restricted Subsidiaries to,
create, incur, assume or suffer to exist any Indebtedness, except:

 

(a)           Indebtedness
arising under the Credit Documents;

 

(b)           Indebtedness
of (i) Holdings, the Borrower or any Subsidiary who is a Guarantor owing to
Holdings, the Borrower or any Subsidiary, (ii) any Subsidiary who is not a
Guarantor owing to any other Subsidiary who is not a Guarantor and (iii) subject
to Section 10.5, any Subsidiary who is not a Guarantor owing to Holdings,
the Borrower or any Subsidiary who is a Guarantor;

 

(c)           Indebtedness
in respect of any bankers’ acceptance, bank guarantees, letter of credit,
warehouse receipt or similar facilities entered into in the ordinary course of
business and not in respect of Hedging Agreements;

 

(d)           Guarantee Obligations incurred by (i) any Restricted
Subsidiary in respect of Indebtedness of Holdings, the Borrower or any other
Restricted Subsidiary that is permitted to be incurred under this Agreement and
(ii) Holdings or the Borrower in respect of Indebtedness of Holdings, the
Borrower or any Restricted Subsidiary that is permitted to be incurred under
this Agreement;

 

(e)           Guarantee Obligations incurred in the ordinary course of
business in respect of obligations to suppliers, customers, franchisees, lessors
and licensees;

 

(f)            (i) Indebtedness (including Indebtedness arising under
Capital Leases) the proceeds of which are used to finance the acquisition,
construction or improvement of fixed or

 

 

83

 

capital
assets, or otherwise incurred in respect of Capital Expenditures, (ii) Indebtedness
arising under Capital Leases entered into in connection with Permitted Sale
Leasebacks, (iii) Indebtedness arising under Capital Leases, other than
Capital Leases in effect on the Closing Date (and set forth on Schedule 10.1)
and Capital Leases entered into pursuant to subclauses (i) and (ii) above;
provided, that the aggregate amount of Indebtedness incurred pursuant to
this subclause (iii) shall not exceed $10,000,000 at any time outstanding
(excluding the aggregate amount of any operating leases which are subsequently
reclassified or recharacterized as Capital Leases under GAAP), and (iv) any
modification, replacement, refinancing, refunding, renewal or extension of any
Indebtedness specified in subclause (i), (ii) or (iii) above, provided
that, except to the extent otherwise expressly permitted hereunder, the
principal amount of any Indebtedness, modified, replaced, refinanced, refunded,
renewed or extended pursuant to this clause (iv) does not exceed the
principal amount thereof outstanding immediately prior to such modification,
replacement, refinancing, refunding, renewal or extension, except by an amount
equal to the unpaid accrued interest and premium thereon plus other
reasonable amounts paid and fees and expenses incurred in connection with such
modification, replacement, refinancing, refunding, renewal or extension;

 

(g)           Closing
Date Indebtedness (other than the Senior Unsecured Subordinated Notes) and any
modification, replacement, refinancing, refunding, renewal or extension
thereof, provided that, except to the extent otherwise expressly
permitted hereunder, (i) the principal amount of any Indebtedness,
modified, replaced, refinanced, refunded, renewed or extended pursuant to this
clause (g) does not exceed the principal amount thereof outstanding
immediately prior to such modification, replacement, refinancing, refunding,
renewal or extension except by an amount equal to the unpaid accrued interest
and premium thereon plus other reasonable amounts paid and fees and expenses
incurred in connection with such modification, replacement, refinancing,
refunding, renewal or extension and (ii) the direct and contingent
obligors with respect to such Indebtedness are not changed;

 

(h)           Indebtedness
in respect of Hedging Agreements;

 

(i)            (i) Indebtedness
in respect of Senior Unsecured Subordinated Notes and any refinancing,
refunding, renewal or extension thereof; provided, that, except to the
extent otherwise expressly permitted hereunder, (x) the principal amount
thereof does not exceed the sum of (A) the principal amount thereof
outstanding immediately prior to such refinancing, refunding, renewal or
extension plus (B) the amount of any interest, premiums or penalties required
to be paid thereon plus (C) reasonable fees and expenses, associated
thereof, (y) the direct and contingent obligors with respect to such
Indebtedness are not changed and (z) such Indebtedness has terms material
to the interests of the Lenders not materially less advantageous to the
Lenders, taken as a whole, than those of the Senior Unsecured Subordinated
Notes being refinanced (such refinancing, refunding, renewed or extended
Indebtedness, “Refinanced Senior Unsecured Subordinated Notes”), and (ii) Indebtedness
in respect of Permitted Additional Notes to the extent the Net Cash Proceeds
therefrom are, immediately after the receipt thereof, applied to the prepayment
of Term Loans in accordance with Section 5.2(a)(i);

 

(j)            (i) Indebtedness
of a Person or Indebtedness attaching to assets of a Person that, in either
case, becomes a Restricted Subsidiary or Indebtedness attaching to assets that
are acquired by the Borrower or any Restricted Subsidiary, in each case after
the Closing Date as the

 

 

84

 

result of a
Permitted Acquisition; provided, that (x) such Indebtedness existed
at the time such Person became a Restricted Subsidiary or at the time such
assets were acquired and, in each case, was not created in anticipation
thereof, (y) such Indebtedness is not guaranteed in any respect by
Holdings, the Borrower or any Restricted Subsidiary (other than any such person
that so becomes a Restricted Subsidiary) and (z)(A) the Capital Stock of
such Person is pledged to the Collateral Agent to the extent required under Section 9.12
and (B) such Person executes a supplement to each of the Guarantee, the
Security Agreement and the Pledge Agreement (or alternative guarantee and
security arrangements in relation to the Obligations) to the extent required
under Section 9.11 or 9.12, as applicable (provided that the assets
covered by such pledges and securing interests may, to the extent permitted
under Section 10.2, equally and ratably secure such Indebtedness assumed),
and (ii) any modification, replacement, refinancing, refunding, renewal or
extension of any Indebtedness specified in subclause (i) above; provided
that, except to the extent otherwise expressly permitted hereunder, the
principal amount of any Indebtedness modified, replaced, refinanced, refunded,
renewed or extended pursuant to this clause (ii) does not exceed the
principal amount thereof outstanding immediately prior to such modification,
replacement, refinancing, refunding, renewal or extension except by an amount
equal to the unpaid accrued interest and premium thereon plus other
reasonable amounts paid and fees and expenses incurred in connection with such
modification, replacement, refinancing, refunding, renewal or extension;

 

(k)           (i) Indebtedness
of Holdings, the Borrower or any Restricted Subsidiary incurred to finance a
Permitted Acquisition; provided, that (x) if such Indebtedness is
incurred by a Restricted Subsidiary that is not a Guarantor, such Indebtedness
is not guaranteed in any respect by Holdings, the Borrower or any other
Guarantor except as permitted under Section 10.5 and (y)(A) the
Borrower or such other relevant Credit Party pledges the Capital Stock of any
Person acquired in such Permitted Acquisition (the “acquired Person”) to
the Collateral Agent to the extent required under Section 9.12 and (B) such
acquired Person executes a supplement to the Guarantee, the Security Agreement
and the Pledge Agreement (or alternative guarantee and security arrangements in
relation to the Obligations) to the extent required under Sections 9.11 or
9.12, as applicable, (provided that the assets covered by such pledges and
securing interests may, to the extent permitted by Section 10.2, equally
and ratably secure such Indebtedness incurred) and (ii) any modification,
replacement, refinancing, refunding, renewal or extension of any Indebtedness
specified in subclause (i) above; provided
that, except to the extent otherwise expressly permitted hereunder, the
principal amount of any Indebtedness modified, replaced, refinanced, refunded,
renewed or extended pursuant to this clause (ii) does not exceed the
principal amount thereof outstanding immediately prior to such modification,
replacement, refinancing, refunding, renewal or extension except by an amount
equal to the unpaid accrued interest and premium thereon plus other
reasonable amounts paid and fees and expenses incurred in connection with such
modification, replacement, refinancing, refunding, renewal or extension;

 

(l)            (i) 
Indebtedness incurred in connection with any Permitted Sale Leaseback and (ii) any
refinancing, refunding, renewal or extension of any Indebtedness specified in
subclause (i) above; provided, that, except to the extent otherwise
expressly permitted hereunder, the principal amount of any such Indebtedness
does not exceed the sum of (x) the principal amount thereof outstanding
immediately prior to such refinancing, refunding, renewal or extension plus (y) the
amount of any interest, premiums or penalties required, to be paid thereon plus
(z) reasonable fees associated therewith;

 

85

 

(m)          unsecured
Indebtedness in respect of obligations of the Borrower or any Restricted
Subsidiary to pay the deferred purchase price of goods or services or progress
payments in connection with such goods and services; provided, that such
obligations are incurred in connection with open accounts extended by suppliers
on customary trade terms (which require that all such payments be made within
60 days after the incurrence of the related obligation) in the ordinary course
of business and not in connection with the borrowing of money or any Hedging
Agreements;

 

(n)           Indebtedness
arising from agreements of Holdings, the Borrower or any Restricted Subsidiary
providing for indemnification, adjustment of purchase price or similar
obligations, in each case incurred or assumed in connection with Permitted
Acquisitions and the disposition of any business, assets or Capital Stock
permitted hereunder, other than Guarantee Obligations incurred by any Person
acquiring all or any portion of such business, assets or Capital Stock for the
purpose of financing such acquisition; provided, that (i) such
Indebtedness is not reflected on the balance sheet of the Borrower or any
Restricted Subsidiary (contingent obligations referred to in a footnote to
financial statements and not otherwise reflected on the balance sheet will not
be deemed to be reflected on such balance sheet for purposes of this clause
(i)) and (ii) the maximum assumable liability in respect of all such
Indebtedness shall at no time exceed the gross proceeds, including non-cash
proceeds (the fair market value of such non-cash proceeds being measured at the
time received and without giving effect to any subsequent changes in value),
actually received by the Borrower and the Restricted Subsidiaries in connection
with such disposition;

 

(o)           Indebtedness
in respect of performance bonds, bid bonds, appeal bonds, surety bonds,
performance and completion guarantees and similar obligations incurred in the
ordinary course of business and not in connection with the borrowing of money
or Hedging Agreements;

 

(p)           Indebtedness
of Holdings, the Borrower or any Restricted Subsidiary consisting of
obligations to pay insurance premiums arising in the ordinary course of
business and not in connection with the borrowing of money or Hedging
Agreements;

 

(q)           Indebtedness
in respect of Margin Lines of Credit and Warehouse Lines of Credit;

 

(r)            Indebtedness
representing deferred compensation to employees, consultants and independent
contractors of Holdings, the Borrower and the Restricted Subsidiaries incurred
in the ordinary course of business;

 

(s)           subordinated
Indebtedness consisting of promissory notes issued by any Credit Party to
current or former officers, directors, managers, consultants and employees,
their respective successors, executors, administrators, heirs, legatees or
distributees to finance the retirement, acquisition, repurchase or redemption
of Capital Stock permitted by Section 10.6;

 

(t)            cash
management obligations and other Indebtedness in respect of netting services,
overdraft protections, automatic clearinghouse arrangements, employee credit
cards and

 

86

 

similar
arrangements in each case in the ordinary course of business and consistent
with past business practices;

 

(u)           all
customary premiums (if any), interest (including post-petition interest), fees,
expenses, charges and additional or contingent interest on obligations
described in each of the clauses of this Section 10.1;

 

(v)           New Term
Loans, Revolving Credit Increases and Permitted Additional Notes and any
refinancing, refunding, renewal or extension thereof; provided, that the
aggregate principal amount of Indebtedness outstanding at any time pursuant to
this clause (v) shall not at any time exceed $150,000,000; and

 

(w)          additional
Indebtedness and any refinancing, refunding, renewal or extension thereof; provided,
that the aggregate principal amount of Indebtedness outstanding at any time
pursuant to this clause (w) shall not at any time exceed $25,000,000; provided
that the Borrower and the Restricted Subsidiary may incur additional
Indebtedness under this clause (w) in an aggregate principal amount not to
exceed the product of (1) (x) 7.5% multiplied by (y) the
Consolidated EBITDA Growth Factor multiplied by (2) $1,300,000,000.

 

10.2         Limitation
on Liens.  Holdings and the Borrower
will not, and will not permit any of the Restricted Subsidiaries to, create,
incur, assume or suffer to exist any Lien upon any property or assets of any
kind (real or personal, tangible or intangible) of Holdings, the Borrower or
any Restricted Subsidiary, whether now owned or hereafter acquired, except:

 

(a)           Liens
securing the Obligations;

 

(b)           Permitted
Liens;

 

(c)           Liens
securing Indebtedness permitted pursuant to Section 10.1(f); provided,
that such Liens attach at all times only to the assets financed with such
Indebtedness;

 

(d)           Liens
existing on the Closing Date and listed on Schedule 10.2;

 

(e)           the
replacement, extension, modification or renewal of any Lien permitted by
clauses (a) through (d) above and clauses (f) and (g) of
this Section 10.2 upon or in the same assets theretofore subject to such
Lien (other than after-acquired property that is affixed or incorporated into
the property covered by such lien or financed by Indebtedness permitted under Section 10.1
and proceeds and products thereof) or the replacement, extension, modification
or renewal (without increase in the amount except to the extent otherwise
expressly permitted hereunder) of the Indebtedness secured thereby;

 

(f)            Liens
existing on the assets of any Person that becomes a Restricted Subsidiary, or
existing on assets acquired, pursuant to a Permitted Acquisition to the extent
the Liens on such assets secure Indebtedness permitted by Section 10.1(j);
provided, that such Liens attach at all times only to the same assets
that such Liens (other than after-acquired property that is affixed or
incorporated into the property covered by such lien or financed by Indebtedness
permitted under Section 10.1 and proceeds and products thereof) attached
to, and secure only the same Indebtedness that such Liens secured, immediately
prior to such Permitted Acquisition;

 

 

87

 

(g)           (i) Liens
placed upon the Capital Stock of any Restricted Subsidiary acquired pursuant to
a Permitted Acquisition to secure Indebtedness incurred pursuant to Section 10.1(k) in
connection with such Permitted Acquisition and (ii) Liens placed upon the
assets of such Restricted Subsidiary to secure a guarantee by such Restricted
Subsidiary of any such Indebtedness of Holdings, the Borrower or any other
Restricted Subsidiary;

 

(h)           Liens
securing Indebtedness or other obligations of Holdings, the Borrower or a
Subsidiary in favor of Holdings, the Borrower or any Subsidiary that is a
Guarantor and Liens securing Indebtedness or other obligations of any
Subsidiary that is not a Guarantor in favor of any Subsidiary that is not a
Guarantor;

 

(i)            Liens of
a collection bank arising under Section 4-210 of the Uniform Commercial
Code on items in the course of collection and (ii) in favor of a banking
institution arising as a matter of law encumbering deposits (including the
right to set off) and which are within the general parameters customary in the
banking industry;

 

(j)            Liens (i) on
cash advances in favor of the seller of any property to be acquired in an
Investment permitted pursuant to Sections 10.5 to be applied against the
purchase price for such Investment, and (ii) consisting of an agreement to
sell, transfer, lease or otherwise dispose of any property in a transaction
permitted under Section 10.4, in each case, solely to the extent such
Investment or sale, disposition, transfer or lease, as the case may be, would
have been permitted on the date of the creation of such Lien;

 

(k)           Liens
arising out of conditional sale, title retention, consignment or similar
arrangements for sale of goods entered into by the Borrower or any of the Restricted
Subsidiaries in the ordinary course of business permitted by this Agreement;

 

(l)            Liens
deemed to exist in connection with Investments in repurchase agreements
permitted under Section 10.5;

 

(m)          Liens
encumbering reasonable customary initial deposits and margin deposits and
similar Liens attaching to commodity trading accounts or other brokerage
accounts incurred in the ordinary course of business and not for speculative
purposes;

 

(n)           Liens that
are contractual rights of set-off (i) relating to the establishment of
depository relations with banks not given in connection with the issuance of
Indebtedness, (ii) relating to pooled deposit, automatic clearinghouse or
sweep accounts of Holdings, the Borrower or any Restricted Subsidiary to permit
satisfaction of overdraft or similar obligations incurred in the ordinary
course of business of Holdings, the Borrower and the Restricted Subsidiaries or
(iii) relating to purchase orders and other agreements entered into with
customers of Holdings, the Borrower or any Restricted Subsidiary in the
ordinary course of business;

 

(o)           Liens
solely on any cash earnest money deposits made by Holdings, the Borrower or any
of the Restricted Subsidiaries in connection with any letter of intent or
purchase agreement permitted hereunder;

 

(p)           Liens on
insurance policies and the proceeds thereof securing the financing of the
premiums with respect thereto;

 

88

 

 

(q)           Liens
securing Indebtedness under any Margin Line of Credit or Warehouse Line of
Credit; and

 

(r)            other
Liens not otherwise permitted by this Section 10.2 so long as the
aggregate amount of obligations secured thereby does not exceed $10,000,000.

 

10.3         Limitation
on Fundamental Changes.  Except as
expressly permitted by Section 10.4 or 10.5, Holdings and the Borrower
will not, and will not permit any of the Restricted Subsidiaries to, enter into
any merger, consolidation or amalgamation, or liquidate, wind up or dissolve
itself (or suffer any liquidation or dissolution), or convey, sell, lease,
assign, transfer or otherwise dispose of all or substantially all its business
units, assets or other properties, except that:

 

(a)           any
Subsidiary of the Borrower or any other Person may be merged, amalgamated or
consolidated with or into the Borrower; provided, that (i) the
Borrower shall be the continuing or surviving corporation or the Person formed
by or surviving any such merger, amalgamation or consolidation (if other than
the Borrower) shall be an entity organized or existing under the laws of the
United States, any state thereof, the District of Columbia or any territory
thereof (the Borrower or such Person, as the case may be, being herein referred
to as the “Successor Borrower”), (ii) the Successor Borrower (if
other than the Borrower) shall expressly assume all the obligations of the
Borrower under this Agreement and the other Credit Documents pursuant to a
supplement hereto or thereto in form reasonably satisfactory to the
Administrative Agent, (iii) no Default or Event of Default would result
from the consummation of such merger, amalgamation or consolidation, (iv) the
Successor Borrower shall be in compliance, on a pro forma basis after giving
effect to such merger, amalgamation or consolidation, with the covenants set
forth in Sections 10.9 and 10.10, as such covenants are recomputed as at the
last day of the most recently ended Test Period under such Section as if
such merger, amalgamation or consolidation had occurred on the first day of
such Test Period, (v) each Guarantor, unless it is the other party to such
merger or consolidation or unless the Successor Borrower is the Borrower, shall
have by a supplement to the Guarantee confirmed that its Guarantee shall apply
to the Successor Borrower’s obligations under this Agreement, (vi) each
Subsidiary grantor and each Subsidiary pledgor, unless it is the other party to
such merger, amalgamation or consolidation or unless the Successor Borrower is
the Borrower, shall have by a supplement to the Security Agreement and the
Pledge Agreement confirmed that its obligations thereunder shall apply to the
Successor Borrower’s obligations under this Agreement, (vii) each
mortgagor of a Mortgaged Property, unless it is the other party to such merger
or consolidation or unless the Successor Borrower is the Borrower, shall have
by an amendment to or restatement of the applicable Mortgage confirmed that its
obligations thereunder shall apply to the Successor Borrower’s obligations
under this Agreement, (viii) the Borrower shall have delivered to the
Administrative Agent an officer’s certificate stating that such merger,
amalgamation or consolidation and any supplements to this Agreement or any
Security Document preserve the enforceability of the Guarantee and the
perfection and priority of the Liens under the Security Documents and (ix) if
reasonably requested by the Administrative Agent, an opinion of counsel to the
effect that such merger, amalgamation or consolidation does not violate this
Agreement or any other Credit Document; provided further that if the
foregoing are satisfied, the Successor Borrower (if other than the Borrower)
will succeed to, and be substituted for, the Borrower under this Agreement;

 

 

89

 

(b)           any
Subsidiary of the Borrower or any other Person may be merged, amalgamated or
consolidated with or into any one or more Subsidiaries of the Borrower; provided,
that (i) in the case of any merger, amalgamation or consolidation
involving one or more Restricted Subsidiaries, (A) a Restricted Subsidiary
shall be the continuing or surviving corporation or (B) the Borrower shall
take all steps necessary to cause the Person formed by or surviving any such
merger, amalgamation or consolidation (if other than a Restricted Subsidiary)
to become a Restricted Subsidiary, (ii) in the case of any merger,
amalgamation or consolidation involving one or more Guarantors, a Guarantor
shall be the continuing or surviving corporation or the Person formed by or
surviving any such merger, amalgamation or consolidation (if other than a
Guarantor) shall execute a supplement to the Guarantee, the Security Agreement,
the Pledge Agreement and any applicable Mortgage in form and substance
reasonably satisfactory to the Administrative Agent in order for such surviving
corporation to become a Guarantor and pledgor, mortgagor and grantor of
Collateral for the benefit of the Secured Parties, (iii) no Default or
Event of Default would result from the consummation of such merger,
amalgamation or consolidation, (iv) the Borrower shall be in compliance,
on a pro forma basis after giving effect to such merger, amalgamation or
consolidation, with the covenants set forth in Sections 10.9 and 10.10, as such
covenants are recomputed as at the last day of the most recently ended Test
Period under such Section as if such merger, consolidation or amalgamation
had occurred on the first day of such Test Period, and (v) the Borrower
shall have delivered to the Administrative Agent an officer’s certificate
stating that such merger, amalgamation or consolidation and such supplements to
any Security Document preserve the enforceability of the Guarantee and the
perfection and priority of the Liens under the Security Agreement;

 

(c)           any
Restricted Subsidiary that is not a Guarantor may sell, lease, transfer or
otherwise dispose of any or all of its assets (upon voluntary liquidation or
otherwise) to the Borrower, a Guarantor or any other Restricted Subsidiary of
the Borrower;

 

(d)           any
Guarantor may sell, lease, transfer or otherwise dispose of any or all of its
assets (upon voluntary liquidation or otherwise) to the Borrower or any other
Guarantor; and

 

(e)           any
Restricted Subsidiary may liquidate or dissolve if (x) the Borrower
determines in good faith that such liquidation or dissolution is in the best
interests of the Borrower and is not materially disadvantageous to the Lenders
and (y) to the extent such Restricted Subsidiary is a Credit Party, any
assets or business not otherwise disposed of or transferred in accordance with Section 10.4
or 10.5, or, in the case of any such business, discontinued, shall be
transferred to, or otherwise owned or conducted by, another Credit Party after
giving effect to such liquidation or dissolution.

 

10.4         Limitation
on Sale of Assets.  Holdings and the
Borrower will not, and will not permit any of the Restricted Subsidiaries to, (i) convey,
sell, lease, assign, transfer or otherwise dispose of any of its property,
business or assets (including receivables and leasehold interests), whether now
owned or hereafter acquired (other than any such sale, transfer, assignment or
other disposition resulting from a Recovery Event), or (ii) sell to any
Person (other than the Borrower or a Guarantor) any shares owned by it of any
Restricted Subsidiary’s Capital Stock, except that:

 

 

90

(a)           Holdings,
the Borrower and the Restricted Subsidiaries may sell, transfer or otherwise
dispose of the following in the ordinary course of business:  (i) obsolete, worn-out, used or surplus
assets to the extent such assets are not necessary for the operation of the
Borrower’s and its Subsidiaries’ business; (ii) inventory, securities and
goods held for sale; and (iii) cash and Permitted Investments;

 

(b)           Holdings,
the Borrower and the Restricted Subsidiaries may lease, license (on a
non-exclusive basis with respect to intellectual property), or sublease or
sublicense (on a non-exclusive basis with respect to intellectual property)
real or personal property in the ordinary course of business;

 

(c)           Holdings,
the Borrower and the Restricted Subsidiaries may sell, transfer or otherwise
dispose of other assets (other than accounts receivable) for fair value; provided,
that (i) the aggregate amount of such sales, transfers and disposals by
Holdings, the Borrower and the Restricted Subsidiaries, taken as a whole,
pursuant to this clause (c) shall not exceed in the aggregate an amount
equal to 10% of Consolidated Total Net Tangible Assets, (ii) any
consideration in excess of $5,000,000 received by Holdings, the Borrower or any
Guarantor in connection with such sales, transfers and other dispositions of
assets pursuant to this clause (c) that is in the form of Indebtedness
shall be pledged to the Administrative Agent pursuant to Section 9.12, (iii) with
respect to any such sale, transfer or disposition (or series of related sales,
transfers or dispositions) in an aggregate amount in excess of $20,000,000, the
Borrower shall be in compliance, on a pro forma basis after giving effect to
such sale, transfer or disposition, with the covenants set forth in Sections
10.9 and 10.10, as such covenants are recomputed as at the last day of the most
recently ended Test Period under such Sections as if such sale, transfer or
disposition had occurred on the first day of such Test Period and (iv) after
giving effect to any such sale, transfer or disposition, no Default or Event of
Default shall have occurred and be continuing;

 

(d)           Holdings,
the Borrower and the Restricted Subsidiaries may (i) sell or discount
without recourse accounts receivable arising in the ordinary course of business
in connection with the compromise or collection thereof and (ii) sell or
transfer accounts receivable and related rights pursuant to customary
receivables financing facilities so long as, in each case, the Net Cash
Proceeds thereof to Holdings, the Borrower and the Restricted Subsidiaries are
promptly applied to the prepayment of Term Loans pursuant to Section 5.2;

 

(e)           Holdings,
the Borrower and the Restricted Subsidiaries may sell, transfer or otherwise
dispose of property or assets to Holdings, the Borrower or to a Restricted
Subsidiary; provided, that if the transferor of such property is a
Guarantor or the Borrower (i) the transferee thereof must either be the
Borrower or a Guarantor or (ii) to the extent such transaction constitutes
an Investment, such transaction is permitted under Section 10.5;

 

(f)            the
Borrower and the Restricted Subsidiaries may effect any transaction permitted
by Section 10.3 and Holdings, the Borrower and the Restricted Subsidiaries
may effect any transaction permitted by Section 10.6, 10.8 or Liens
permitted by Section 10.2;

 

(g)           the
Borrower and the Restricted Subsidiaries may sell, transfer, sale leaseback,
separately develop or otherwise dispose of the property listed on Schedule 1.1(a) (it

 

91

 

 

being
understood that in any of such events the Mortgage will be released by the
Collateral Agent upon the request made by the Borrower); and

 

(h)           Holdings,
the Borrower and the Restricted Subsidiaries may exchange or “swap” assets for
other assets of another Person other than Holdings, the Borrower or any
Restricted Subsidiary; provided, that (i) the assets received by
Holdings, the Borrower or such Restricted Subsidiary will be used or useful in
the business of Holdings, the Borrower and their Subsidiaries, (ii) Holdings,
the Borrower or such Restricted Subsidiary shall receive reasonably equivalent
value for such assets, (iii) such assets shall be received by Holdings,
the Borrower or such Restricted Subsidiary substantially concurrently with the
delivery of the existing assets of Holdings, the Borrower or such Restricted
Subsidiary to such other Person, (iv) Holdings, the Borrower and such
Restricted Subsidiaries shall account for such exchange or swap in accordance
with GAAP and (v) any cash or Permitted Investments received in any such
swap shall be treated as asset sale proceeds subject to the limitations of Section 10.4(c) and
not this Section 10.4(h).

 

10.5         Limitation
on Investments.  Holdings and the
Borrower will not, and will not permit any of the Restricted Subsidiaries to,
make any advance, loan, extensions of credit or capital contribution to, or
purchase any stock, bonds, notes, debentures or other securities of or any
assets of, or make any other investment in, any Person (all of the foregoing, “Investments”),
except:

 

(a)           extensions
of trade credit, asset purchases (including purchases of inventory, supplies
and materials) and the licensing or contribution of intellectual property
pursuant to joint marketing arrangements with other Persons, in each case in
the ordinary course of business;

 

(b)           Permitted
Investments;

 

(c)           loans and
advances to officers, directors and employees of Holdings, the Borrower or any
of its Subsidiaries (i) to finance the purchase of Capital Stock of
Holdings (or any direct or indirect parent thereof; provided, that the
amount of such loans and advances used to acquire such Capital Stock shall be
contributed to Holdings or the Borrower, as applicable, in cash as common
equity) or the Borrower, (ii) for reasonable and customary business
related travel expenses, moving expenses and similar expenses, in each case
incurred in the ordinary course of business, and (iii) for additional
purposes not contemplated by subclause (i) or (ii) above in an
aggregate principal amount at any time outstanding with respect to this clause (iii) not
exceeding $10,000,000;

 

(d)           Investments
existing on the Closing Date and listed on Schedule 10.5 and any extensions,
renewals or reinvestments thereof, so long as the aggregate amount of all
Investments pursuant to this clause (d) is not increased at any time above
the amount of such Investments existing on the Closing Date;

 

(e)           Investments
in Hedging Agreements permitted by Section 10.1(h);

 

(f)            Investments
received in connection with the bankruptcy or reorganization of supplier or
customers and in settlement of delinquent obligations of, and other disputes
with, 

 

 

92

 

customers
arising in the ordinary course of business or upon the foreclosure with respect
to any secured Investment or other transfer of title with respect to any
secured Investment;

 

(g)           Investments
to the extent that payment for such investments is made solely with Capital
Stock of Holdings (or any direct or indirect parent thereof) or the Borrower;

 

(h)           Investments
constituting non-cash proceeds of sales, transfers and other dispositions of
assets to the extent permitted by Section 10.4;

 

(i)            Investments
in the Borrower or any Guarantor and Investments by any Subsidiary that is not
a Guarantor in any other Subsidiary;

 

(j)            Investments
constituting Permitted Acquisitions, provided, that the aggregate amount
of any such Investment, as valued at the fair market value of such Investment
at the time each such Investment is made, made by the Borrower or any
Restricted Subsidiary in any Subsidiary that shall not be, or after giving
effect to such Investment, shall not become a Guarantor shall not exceed (i) $250,000,000
plus (ii) the Available Amount plus (iii) an amount equal to any
repayments, interest, returns, profits, distributions, income and similar
amounts actually received in cash in respect of any such Investment (which
amount shall not exceed the amount of such Investment valued at the fair market
value of such Investment at the time such Investment was made);

 

(k)           Investments
in the equity interests of one or more newly formed Persons that are received
in consideration of the contribution by Holdings, the Borrower or the
applicable Restricted Subsidiaries of assets (including Capital Stock) to such
person or persons; provided, that (i) the fair market value of such
assets, determined on an arms-length basis, so contributed pursuant to this
paragraph (k) shall not in the aggregate exceed $10,000,000 and (ii) in
respect of each such contribution, an Authorized Officer of the Borrower shall
certify, in a form to be agreed upon by the Borrower and the Administrative
Agent (x) after giving effect to such contribution, no Default or Event of
Default shall have occurred and be continuing, (y) the fair market value
of the assets so contributed and (z) that the requirements of clause (i) of
this proviso remain satisfied;

 

(l)            Investments
made to repurchase or retire Capital Stock of Holdings (or any direct or
indirect parent thereof) or the Borrower owned by any employee stock ownership
plan or key employee stock ownership plan of Holdings (or any direct or
indirect parent thereof) or the Borrower;

 

(m)          Investments
in the business of the Borrower and its Restricted Subsidiaries made by the
Borrower or any of its Restricted Subsidiaries with the proceeds of any Asset
Sale Prepayment Event or Recovery Event prior to the end of the Reinvestment
Period or pursuant to an Acceptable Reinvestment Commitment or Restoration
Certification;

 

(n)           the
Borrower may make a loan to Holdings that could otherwise be made as a Dividend
permitted under Section 10.6;

 

 

93

 

(o)           Investments
in the ordinary course of business consisting of Article 3 endorsements
for collection or deposit and Article 4 customary trade arrangements with
customers consistent with past practices;

 

(p)           advances
of payroll payments to employees, consultants and independent contractors in
the ordinary course of business;

 

(q)           Investments
of a Restricted Subsidiary acquired after the Closing Date or of a corporation
merged into the Borrower or merged or consolidated with a Restricted Subsidiary
in accordance with Section 10.3 after the Closing Date to the extent that
such Investments were not made in contemplation of, or in connection with, such
acquisition, merger or consolidation and were in existence on the date of such
acquisition, merger or consolidation;

 

(r)            Guarantees
by Holdings, the Borrower or any Restricted Subsidiary of leases (other than
Capital Leases) or of other obligations that do not constitute Indebtedness, in
each case entered into in the ordinary course of business;

 

(s)           Investments
of any OCC-Regulated Subsidiary in the Capital Stock of the Federal Reserve
Bank in the district in which such Subsidiary is located in accordance with the
provisions of the Federal Reserve Act;

 

(t)            Investments
in “seed investment portfolios” for the purpose of testing and determining
model portfolios in the ordinary course of business and consistent with past
business practice; provided, that such Investments as valued at the fair
market value of such Investments at the time each such Investment is made,
would not exceed (i) $10,000,000 plus (ii) the Available Amount plus (iii) an
amount equal to any repayments, interest, returns, profits, distributions,
income and similar amounts actually received in cash in respect of any such
Investment (which amount shall not exceed the amount of such Investment valued
at the fair market value of such Investment at the time such Investment was
made);

 

(u)           intercompany
Investments by Holdings, the Borrower or any Guarantor in any Person that,
prior to such investment, is an Excluded Subsidiary; provided, that the
amount of such Investment, as valued at the fair market value of such
Investment at the time such Investment is made, shall not exceed (i) $10,000,000
plus (ii) the Available Amount plus (iii) an amount equal to any
repayments, interest, returns, profits, distributions, income and similar
amounts actually received in cash in respect of any such Investment (which
amount shall not exceed the amount of such Investment valued at the fair market
value of such Investment at the time such Investment was made);

 

(v)           (i) Investments
permitted under Section 10.6 or the proviso to Section 9.9 and (ii) Guarantee
Obligations permitted under Section 10.1;

 

(w)          intercompany
Investments in the form of loans, advances or extensions of credit by any
Credit Party to any Excluded Subsidiary in the ordinary course of business for
working capital purposes; provided, that such loans, advances or
extensions of credit shall be evidenced by one global promissory note that
shall be pledged to the Collateral Agent for the benefit of the Secured Parties
and which shall be executed by each Excluded Subsidiary which shall receive
such loan, advance or extension of credit;

 

 

94

 

(x)            to the
extent constituting an Investment, Margin Loans, mortgage and warehouse loans
and other similar advances and extensions of credit made by the Borrower or any
Restricted Subsidiary in the ordinary course of business to their respective
customers;

 

(y)           Investments
made by the Borrower within 10 Business Days after the Closing Date in PTC Holdings, Inc.
and The Private Trust Company, N.A. in an aggregate amount as valued at the
fair market value of such Investment at the time made not to exceed $7,000,000;

 

(z)            Securities
Owned (as set forth on the balance sheet of the Broker-Dealer Regulated Subsidiary)
for a period no longer than 10 Business Days following a securities trade from
a customer account and constituting securities transactions entered into by the
Broker-Dealer Regulated Subsidiary for the purpose of making adjustments to
such Subsidiary’s customer accounts with respect to such securities trade, with
the fair market value of all such Securities Owned (as set forth on the balance
sheet of the Broker-Dealer Regulated Subsidiary), not to exceed $10,000,000 in
the aggregate at any time outstanding;

 

(aa)         (i) any
additional Investments (including Investments in Minority Investments and
Unrestricted Subsidiaries and in joint ventures or similar entities that do not
constitute Restricted Subsidiaries) as valued at the fair market value of such
Investment at the time each such Investment is made and (ii) Investments
in respect of loans and advances to licensed financial advisors to facilitate
the transfer of such advisors’ businesses to the Borrower and its Subsidiaries
or to platforms utilized by the Borrower and its Subsidiaries, for the purchase
of other financial advisors’ businesses and for incidental and working capital
purposes; provided, that the aggregate amount of all such additional
Investments made pursuant to this clause (aa) shall not exceed an aggregate
amount that, at the time each such Investment is made, would not exceed the sum
of (x) $125,000,000 plus (y) the Available Amount plus (z) an
amount equal to any repayments, interest, returns, profits, distributions,
income and similar amounts actually received in cash in respect of all such
Investments (which amount shall not exceed the amount of all Investments valued
at the fair market value of all such Investments at the time each respective
Investment was made), provided that the amount in clause (x) shall be
permanently increased to $250,000,000 upon the earliest to occur of (1) the
Borrower’s corporate family rating by Moody’s is Ba3 or better or (2) the
Consolidated Total Debt to Consolidated EBITDA Ratio is less than or equal to
4.00:1.00;

 

(bb)         Investments in connection with the UVEST Acquisition; and

 

(cc)         Investments in connection with the Pacific Life Acquisition.

 

10.6         Limitation
on Dividends.  Neither Holdings nor
the Borrower will declare or pay any dividends (other than (a) in respect
of Holdings, dividends payable solely in respect of its Capital Stock and (b) in
respect of the Borrower, dividends payable solely in respect of its Capital
Stock) or return any capital to its stockholders or make any other
distribution, payment or delivery of property or cash to its stockholders as
such, or redeem, retire, purchase or otherwise acquire, directly or indirectly,
for consideration, any shares of any class of its Capital Stock or the Capital
Stock of any direct or indirect parent now or hereafter outstanding (or any
options or warrants or stock appreciation rights issued with respect to any of

 

 

95

 

its Capital Stock), or set
aside any funds for any of the foregoing purposes, or permit any of the
Restricted Subsidiaries to purchase or otherwise acquire for consideration
(other than in connection with an investment permitted by Section 10.5)
any shares of any class of the Capital Stock of Holdings or the Capital Stock
of the Borrower, now or hereafter outstanding (or any options or warrants or
stock appreciation rights issued with respect to any of its Capital Stock) (all
of the foregoing “Dividends”):

 

(a)                           Holdings
or the Borrower may (i) redeem in whole or in part any of its Capital
Stock for another class of Capital Stock or rights to acquire its Capital Stock
or with proceeds from substantially concurrent equity contributions or
issuances of new shares of its Capital Stock; provided, that any terms
and provisions material to the interests of the Lenders contained in such other
class of Capital Stock be at least as advantageous to the Lenders, taken as a
whole, as those contained in the Capital Stock redeemed thereby or (ii) so
long as no Default or Event of Default has occurred and is continuing, declare
and pay dividends or make distributions in the amount of proceeds of equity
contributions or issuances of new shares of Capital Stock (other than Equity
Contributions, issuances of Permitted Cure Securities or other equity contributions
to the extent utilized in connection with other transactions permitted pursuant
to Section 10.5 or 10.6);

 

(b)                           Holdings
or the Borrower may redeem, acquire, retire or repurchase (and the Borrower and
its Subsidiaries may declare and pay Dividends to Holdings, the proceeds of
which are used to so redeem, acquire, retire or repurchase) Capital Stock
(including related stock appreciation rights or similar securities) (or to
allow any of Holdings’ direct or indirect parent companies to so redeem,
acquire, retire or repurchase its Capital Stock) from present or former
officers, managers, consultants, employees and directors (or their respective
successors, executors, administrators, heirs, legatees or distributees) of
Holdings (or any direct or indirect parent thereof), the Borrower and its
Subsidiaries, with the proceeds of Dividends from, seriatim, Holdings or the
Borrower, upon the death, disability, retirement or termination of employment
of any such Person or otherwise in accordance with any stock option or stock
appreciation rights plan, any management or employee stock ownership plan,
stock subscription plan, employment termination agreement or any employment
agreements or stockholders’ agreement; provided, that except with
respect to non-discretionary repurchases, acquisitions, retirement, or
redemptions pursuant to the terms of any such agreement, the aggregate amount
of all cash paid in respect of all such shares so redeemed, acquired, retired
or repurchased in any calendar year does not exceed the sum of (i) $5,000,000
plus (ii) all amounts obtained by Holdings or the Borrower during such
calendar year from the sale of such Capital Stock to other present or former
officers, consultants, employees and directors in connection with any permitted
compensation and incentive arrangements plus (iii) all amounts obtained
from any key-man life insurance policies received during such calendar year;
notwithstanding the foregoing, 100% of the unused amount of payments in respect
of this clause (b) may be carried forward to the next succeeding fiscal
year and utilized to make payments pursuant to this clause (b);

 

(c)                           Holdings,
the Borrower and the Restricted Subsidiaries may make Investments permitted by Section 10.5;

 

 

96

 

(d)                           to
the extent constituting Dividends, Holdings may enter into and consummate
transactions expressly permitted by Section 10.3 or the proviso to Section 9.9;

 

(e)                           Holdings
may pay Dividends on the First Restatement Effective Date to consummate the
UVEST Acquisition;

 

(f)                            Holdings
may pay Dividends on the Effective Date to consummate the Pacific Life
Acquisition; and

 

(g)                           the
Borrower may make and pay Dividends to Holdings:

 

(i)            the
proceeds of which will be used to pay (or to make Dividends to allow any direct
or indirect parent of Holdings to pay) the tax liability to each relevant
jurisdiction in respect of consolidated, combined, unitary or affiliated
returns for the relevant jurisdiction of Holdings (or such parent) attributable
to Holdings, the Borrower or its Subsidiaries;

 

(ii)           the
proceeds of which shall be used by Holdings to pay (or to make Dividends to
allow any direct or indirect parent of Holdings to pay) its operating expenses
incurred in the ordinary course of business and other corporate overhead costs
and expenses (including administrative, legal, accounting and similar expenses
provided by third parties), which are reasonable and customary and incurred in
the ordinary course of business, in an aggregate amount not to exceed $3,000,000
in any fiscal year plus any actual, reasonable and customary indemnification
claims made by directors or officers of Holdings (or any parent thereof);

 

(iii)          the
proceeds of which shall be used by Holdings to pay franchise taxes and other
fees, taxes and expenses required to maintain its (or any of its direct or
indirect parents’) corporate existence;

 

(iv)          the
proceeds of which shall be used by Holdings to make Restricted Payments
permitted by Section 10.6; and

 

(v)           the
proceeds of which shall be used by Holdings to pay (or to make Dividends to
allow any direct or indirect parent thereof to pay) fees and expenses (other
than to Affiliates) related to any unsuccessful equity or debt offering
permitted by this Agreement;

 

(h)                           Holdings
may declare and make distributions or pay dividends on its Capital Stock; provided,
that (i) the aggregate amount of such distributions paid or made by
Holdings pursuant to this Section 10.6(g) shall not at any time
exceed 50% of cumulative Consolidated Net Income at such time and (ii) at
the time of payment of such dividends or the making of such distributions, and
after giving effect thereto, the Borrower’s ratio of Consolidated Total Debt on
the date of such payment of dividends or making of such distributions to
Consolidated EBITDA for the most recent Test Period ended prior to the date of
such payment of dividends or the making of such distributions and calculated as
if such payment of dividends or making of such distributions had occurred on
the first day of such Test Period, shall be less than 3.50:1.00.

 

 

97

 

 

10.7         Limitations
on Debt Payments and Amendments.  (a) 
The Borrower will not prepay, repurchase or redeem or otherwise defease any
Senior Unsecured Subordinated Notes or Refinanced Senior Unsecured Subordinated
Notes (it being understood that any payment of principal prior to the Senior
Unsecured Subordinated Note Maturity Date shall be deemed a prepayment for
purposes of this Section 10.7(a)) or other subordinated Indebtedness
permitted hereunder; provided, however, that so long as no
Default or Event of Default has occurred and is continuing, the Borrower or any
Restricted Subsidiary may prepay, repurchase or redeem any Senior Unsecured
Subordinated Notes or Refinanced Senior Unsecured Subordinated Notes (i) for
an aggregate price which will not exceed, when taken together with prepayments
permitted by subclause (b) below, (x) $25,000,000 plus (y) the
Available Amount at the time of such prepayment, repurchase or redemption or (ii) with
the proceeds of Refinanced Senior Unsecured Subordinated Notes or Indebtedness
subordinated to the Obligations that is permitted by Section 10.1 and that
has terms that, taken as a whole, are not materially less favorable to the
Lenders than the Senior Unsecured Subordinated Notes.

 

(b)                           The
Borrower will not prepay, repurchase or redeem or otherwise defease any
Permitted Additional Notes (it being understood that any payment of principal
prior to the Senior Unsecured Subordinated Note Maturity Date shall be deemed a
prepayment for purposes of this Section 10.7(b)); provided, however,
that so long as no Default or Event of Default has occurred and is continuing,
the Borrower or any Restricted Subsidiary may prepay, repurchase or redeem any
Permitted Additional Notes (i) for an aggregate price which will not
exceed, when taken together with prepayments permitted by subclause (a) above,
(x) $25,000,000 plus (y) the Available Amount at the time of such
prepayment, repurchase or redemption or (ii) with the proceeds of other
Permitted Additional Notes or other Indebtedness subordinated to the
Obligations that is permitted by Section 10.1 and that has terms that,
taken as a whole, are not materially less favorable to the Lenders than the
Permitted Additional Notes being refinanced.

 

(c)                           The
Borrower will not waive, amend, modify or terminate the Senior Unsecured
Subordinated Note Indenture or any indenture governing Refinanced Senior
Unsecured Subordinated Notes to the extent that any such waiver, amendment,
modification, or termination would be adverse to the Lenders in any material
respect.

 

10.8         Limitations
on Sale Leasebacks.  The Borrower
will not, and will not permit any of the Restricted Subsidiaries to, enter into
or effect any Sale Leasebacks, other than Permitted Sale Leasebacks.

 

10.9         Consolidated
Total Debt to Consolidated EBITDA Ratio. 
The Borrower will not permit the Consolidated Total Debt to Consolidated
EBITDA Ratio for any Test Period ending during any period set forth below to be
greater than the ratio set forth below opposite such period:

 

98

 

	
  Period

  	
   

  	
  Ratio

  	
   

  
	
  October 1, 2006
  through March 31, 2007

  	
   

  	
  7.90
  to 1.00

  	
   

  
	
  April 1, 2007 through
  June 30, 2007

  	
   

  	
  7.40
  to 1.00

  	
   

  
	
  July 1, 2007 through
  September 30, 2007

  	
   

  	
  6.90
  to 1.00

  	
   

  
	
  October 1, 2007
  through December 31, 2007

  	
   

  	
  6.70
  to 1.00

  	
   

  
	
  January 1, 2008
  through March 31, 2008

  	
   

  	
  6.50
  to 1.00

  	
   

  
	
  April 1, 2008 through
  June 30, 2008

  	
   

  	
  6.25
  to 1.00

  	
   

  
	
  July 1, 2008 through
  September 30, 2008

  	
   

  	
  5.90
  to 1.00

  	
   

  
	
  October 1, 2008
  through December 31, 2008

  	
   

  	
  5.60
  to 1.00

  	
   

  
	
  January 1, 2009
  through March 31, 2009

  	
   

  	
  5.40
  to 1.00

  	
   

  
	
  April 1, 2009 through
  June 30, 2009

  	
   

  	
  5.10
  to 1.00

  	
   

  
	
  July 1, 2009 through
  September 30, 2009

  	
   

  	
  4.90
  to 1.00

  	
   

  
	
  October 1, 2009
  through December 31, 2009

  	
   

  	
  4.60
  to 1.00

  	
   

  
	
  January 1, 2010
  through March 31, 2010

  	
   

  	
  4.40
  to 1.00

  	
   

  
	
  April 1, 2010 through
  June 30, 2010

  	
   

  	
  4.10
  to 1.00

  	
   

  
	
  July 1, 2010 through
  September 30, 2010

  	
   

  	
  3.90
  to 1.00

  	
   

  
	
  October 1, 2010
  through December 31, 2010

  	
   

  	
  3.70
  to 1.00

  	
   

  
	
  January 1, 2011
  through March 31, 2011

  	
   

  	
  3.50
  to 1.00

  	
   

  
	
  April 1, 2011 through
  June 30, 2011

  	
   

  	
  3.25
  to 1.00

  	
   

  
	
  Thereafter

  	
   

  	
  3.00
  to 1.00

  	
   

  

 

10.10       Consolidated
EBITDA to Consolidated Interest Expense Ratio.  The Borrower will not permit the Consolidated
EBITDA to Consolidated Interest Expense Ratio for any Test Period ending during
any period set forth below to be less than the ratio set forth below opposite
such period:

 

99

 

 

	
  Period

  	
   

  	
  Ratio

  	
   

  
	
  October 1, 2006
  through March 31, 2007

  	
   

  	
  1.30
  to 1.00

  	
   

  
	
  April 1, 2007 through
  June 30, 2007

  	
   

  	
  1.40
  to 1.00

  	
   

  
	
  July 1, 2007 through
  September 30, 2007

  	
   

  	
  1.50
  to 1.00

  	
   

  
	
  October 1, 2007
  through December 31, 2007

  	
   

  	
  1.55
  to 1.00

  	
   

  
	
  January 1, 2008
  through March 31, 2008

  	
   

  	
  1.60
  to 1.00

  	
   

  
	
  April 1, 2008 through
  June 30, 2008

  	
   

  	
  1.65
  to 1.00

  	
   

  
	
  July 1, 2008 through
  September 30, 2008

  	
   

  	
  1.75
  to 1.00

  	
   

  
	
  October 1, 2008
  through December 31, 2008

  	
   

  	
  1.85
  to 1.00

  	
   

  
	
  January 1, 2009
  through March 31, 2009

  	
   

  	
  1.90
  to 1.00

  	
   

  
	
  April 1, 2009 through
  June 30, 2009

  	
   

  	
  2.00
  to 1.00

  	
   

  
	
  July 1, 2009 through
  September 30, 2009

  	
   

  	
  2.05
  to 1.00

  	
   

  
	
  October 1, 2009
  through December 31, 2009

  	
   

  	
  2.15
  to 1.00

  	
   

  
	
  January 1, 2010
  through March 31, 2010

  	
   

  	
  2.25
  to 1.00

  	
   

  
	
  April 1, 2010 through
  June 30, 2010

  	
   

  	
  2.35
  to 1.00

  	
   

  
	
  July 1, 2010 through
  September 30, 2010

  	
   

  	
  2.50
  to 1.00

  	
   

  
	
  October 1, 2010
  through December 31, 2010

  	
   

  	
  2.60
  to 1.00

  	
   

  
	
  January 1, 2011
  through March 31, 2011

  	
   

  	
  2.75
  to 1.00

  	
   

  
	
  April 1, 2011 through
  June 30, 2011

  	
   

  	
  2.95
  to 1.00

  	
   

  
	
  Thereafter

  	
   

  	
  3.00
  to 1.00

  	
   

  

 

10.11       [Reserved].

 

10.12       Burdensome
Agreements.  Holdings and the
Borrower, will not, nor shall they permit any of their Restricted Subsidiaries
to, enter into or permit to exist any agreement (other than this Agreement or
any other Credit Document) that limits the ability of (a) any Restricted
Subsidiary of the Borrower that is not a Guarantor to pay Dividends to
Holdings, the Borrower or any Guarantor or (b) the Borrower or any Credit
Party to create, incur, assume or suffer to exist Liens on property of such
Person for the benefit of the Secured Parties with respect to the Obligations
or under the Credit Documents; provided, that the foregoing clauses (a) and
(b) shall not apply to agreements which (i) (x) exist on the
date hereof and (to the extent not otherwise permitted by this Section 10.12)
are listed on Schedule 10.12 hereto and (y) to the extent any such
agreements permitted by clause (x) are set forth in an agreement
evidencing Indebtedness, any agreement evidencing any permitted renewal,
extension or refinancing of such

 

 

100

Indebtedness so long as such
renewal, extension or refinancing does not expand the scope of such agreement, (ii) are
binding on a Restricted Subsidiary at the time such Restricted Subsidiary first
becomes a Restricted Subsidiary of the Borrower, so long as such agreement was
not entered into solely in contemplation of such Person becoming a Restricted
Subsidiary of the Borrower, (iii) represents Indebtedness of a Restricted
Subsidiary of the Borrower which is not a Credit Party and which is permitted
by Section 10.1, (iv) arise pursuant to agreements entered into with
respect to any sale, transfer, lease or other disposition permitted by Section 10.4,
(v) are customary provisions in joint venture agreements and other similar
agreements applicable to joint ventures permitted under Section 10.5 and
applicable solely to such joint venture entered into in the ordinary course of
business, (vi) are negative pledges and restrictions on Liens in favor of
any holder of Indebtedness permitted under Section 10.1, but solely to the
extent any negative pledge relates to the property financed by or the subject
of such Indebtedness, (vii) are customary restrictions on leases,
subleases, licenses or Capital Stock or asset sale agreements otherwise
permitted hereby so long as such restrictions relate to the Capital Stock or
assets subject thereto, (viii) comprise restrictions imposed by any
agreement relating to secured Indebtedness permitted pursuant to Section 10.1
to the extent that such restrictions apply only to the property or assets
securing such Indebtedness, (ix) are customary provisions restricting
subletting or assignment of any lease governing a leasehold interest of the
Borrower or any Restricted Subsidiary, (x) are customary provisions
restricting assignment of any agreement entered into in the ordinary course of
business, (xi) are restrictions on cash or other deposits imposed by customers
under contracts entered into in the ordinary course of business, and (xii) are
imposed by law.

 

10.13       Permitted
Activities of Holdings.  Holdings
shall not conduct, transact or otherwise engage in any business or operations
other than (i) the ownership of the Capital Stock of the Borrower, (ii) the
maintenance of its legal existence, including the ability to incur fees, costs
and expenses relating to such maintenance, (iii) participating in tax,
accounting and other administrative matters as a member of the consolidated
group of Holdings and Borrower, (iv) the performance of the Credit
Documents, (v) any public offering of its common stock or any other
issuance of its Capital Stock not prohibited by Article 10, including the
costs, fees and expenses related thereto, (vi) any transaction that
Holdings is permitted to enter into or consummate under this Article 10,
including making any Dividend permitted by Section 10.6 or holding any
cash received in connection with Dividends made by the Borrower in accordance
with Section 10.6 pending application thereof by Holdings in the manner
contemplated by Section 10.6, (vii) incurring fees, costs and
expenses relating to overhead and general operating including, without
limitation, professional fees for legal, tax and accounting issues, (viii) providing
indemnification to officers and directors and as otherwise permitted in Section 9
and 10 and (ix) activities incidental to the businesses or activities
described in clauses (i) to (viii) of this Section 10.13.  Holdings will not own or acquire any assets
(other than shares of Capital Stock of the Borrower, cash and Permitted
Investments) or incur any liabilities (other than liabilities under the Credit
Documents, liabilities under its guarantee of the Senior Unsecured Subordinated
Notes (or Refinanced Senior Unsecured Subordinated Notes or Permitted
Additional Notes) and liabilities imposed by law, including tax liabilities,
and other liabilities incidental to its existence and business and activities
permitted by this Agreement).

 

 

101

 

 

SECTION 11.         Events of Default

 

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

 

11.1         Payments.  The Borrower shall (a) default in the
payment when due of any principal of the Loans or (b) default, and such
default shall continue for five or more days, in the payment when due of any
interest on the Loans or any Fees or any Unpaid Drawings or of any other
amounts owing hereunder or under any other Credit Document; or

 

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

 

11.3         Covenants.  Any Credit Party shall (a) default in
the due performance or observance by it of any term, covenant or agreement
contained in Section 9.1(e) or Section 10 or (b) default in
the due performance or observance by it of any term, covenant or agreement
(other than those referred to in Section 11.1 or 11.2 or clause (a) of
this Section 11.3) contained in this Agreement or any other Credit
Document and such default shall continue unremedied for a period of at least 30
days after receipt of written notice by the Borrower from the Administrative
Agent or the Required Lenders; or

 

11.4         Default
Under Other Agreements.  The Borrower
or any of the Restricted Subsidiaries shall (i) default in any payment
with respect to any Indebtedness (other than pursuant to Section 11.1) in
excess of $20,000,000 in the aggregate for the Borrower and such Subsidiaries,
beyond the period of grace, if any, provided in the instrument or agreement
under which such Indebtedness was created or (ii) default in the observance
or performance of any agreement or condition relating to any such Indebtedness
or contained in any instrument or agreement evidencing, securing or relating
thereto, or any other event shall occur or condition exist (other than, with
respect to Indebtedness consisting of any Hedging Agreements, termination
events or equivalent events pursuant to the terms of such Hedging Agreements),
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, any such Indebtedness to become due
prior to its stated maturity; or (b) without limiting the provisions of
clause (a) above, any such Indebtedness shall be declared to be due and
payable, or required to be prepaid other than by a regularly scheduled required
prepayment or as a mandatory prepayment (and, with respect to Indebtedness
consisting of any Hedging Agreements, other than due to a termination event or
equivalent event pursuant to the terms of such Hedging Agreements), prior to
the stated maturity thereof; or

 

11.5         Bankruptcy,
etc.  The Borrower or any Specified
Subsidiary shall commence a voluntary case, proceeding or action concerning
itself under Title 11 of the United States Code entitled “Bankruptcy,”; or an
involuntary case, proceeding or action is commenced against the Borrower or any
Specified Subsidiary and the petition is not controverted within 10 days after
commencement of the case, proceeding or action; or an involuntary case,
proceeding

 

102

 

or action is commenced
against the Borrower or any Specified Subsidiary and the petition is not
dismissed within 60 days after commencement of the case, proceeding or action;
or a custodian (as defined in the Bankruptcy Code) receiver, receiver manager,
trustee or similar person is appointed for, or takes charge of, all or
substantially all of the property of the Borrower or any Specified Subsidiary;
or the Borrower or any Specified Subsidiary commences any other proceeding or
action 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
Specified Subsidiary; or there is commenced against the Borrower or any
Specified Subsidiary any such proceeding or action that remains undismissed for
a period of 60 days; or the Borrower or any Specified Subsidiary is adjudicated
insolvent or bankrupt; or any order of relief or other order approving any such
case or proceeding or action is entered; or the Borrower or any Specified
Subsidiary suffers any appointment of any custodian receiver, receiver manager,
trustee 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
Specified Subsidiary makes a general assignment for the benefit of creditors;
or any corporate action is taken by the Borrower or any Specified Subsidiary
for the purpose of effecting any of the foregoing; or

 

11.6         ERISA.  Any Plan shall fail to satisfy the minimum
funding standard required for any plan year or part thereof or a waiver of such
standard or extension of any amortization period is sought or granted under Section 412
of the Code; any Plan is or shall have been terminated or is the subject of
termination proceedings under ERISA (including the giving of written notice
thereof); an event shall have occurred or a condition shall exist in either
case entitling the PBGC to terminate any Plan or to appoint a trustee to
administer any Plan (including the giving of written notice thereof); any Plan
shall have an accumulated funding deficiency (whether or not waived); any of
the Borrower, any Subsidiary thereof or any ERISA Affiliate has incurred or is
likely to incur a liability to or on account of a Plan under Section 409,
502(i), 502(l), 515, 4062, 4063, 4064, 4069, 4201 or 4204 of ERISA or Section 4971
or 4975 of the Code (including the giving of written notice thereof); (b) there
could result from any event or events set forth in clause (a) of this Section 11.6
the imposition of a lien, the granting of a security interest, or a liability,
or the reasonable likelihood of incurring a lien, security interest or
liability; and (c) such lien, security interest or liability will or would
be reasonably likely to have a Material Adverse Effect; or

 

11.7         Guarantee.  The Guarantee or any material provision
thereof shall cease to be in full force or effect or any Guarantor thereunder
or any Credit Party shall deny or disaffirm in writing any Guarantor’s
obligations under the Guarantee; or

 

11.8         Security
Documents.  Any Security Document or
any material provision thereof shall cease to be in full force or effect (other
than pursuant to the terms hereof or thereof or as a result of acts or
omissions of the Administrative Agent, the Collateral Agent or any Lender) or
any grantor, pledgor or mortgagor thereunder or any Credit Party shall deny or
disaffirm in writing any grantor’s, pledgor’s or mortgagor’s obligations under
such Security Document; or

 

11.9         Subordination.  The Specified Obligations or the obligations
of Holdings or the Restricted Subsidiaries pursuant to the Guarantee shall
cease to constitute senior

 

 

103

 

indebtedness under the
subordination provisions of any document or instrument evidencing any permitted
subordinated Indebtedness or such subordination provisions shall be invalidated
or otherwise cease to be legal, valid and binding obligations of the parties
thereto, enforceable in accordance with their terms; or

 

11.10       Judgments.  One or more judgments or decrees shall be
entered against the Borrower or any of the Restricted Subsidiaries involving a
liability of $20,000,000 or more in the aggregate for all such judgments and
decrees for the Borrower and the Restricted Subsidiaries (to the extent not
paid or fully covered by insurance provided by a carrier not disputing
coverage) and any such judgments or decrees shall not have been satisfied,
vacated, discharged, stayed or bonded pending appeal within 60 days from the
entry thereof; or

 

11.11       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
shall, upon the written request of the Required Lenders, by written notice to
the Borrower, take any or all of the following actions, without prejudice to
the rights of the Administrative Agent or any Lender to enforce its claims
against the Borrower, except as otherwise specifically provided for in this
Agreement (provided that, if an Event of Default specified in Section 11.5
shall occur with respect to the Borrower or any Specified Subsidiary, the
result that would occur upon the giving of written notice by the Administrative
Agent as specified in clauses (i), (ii), (iii) and (v) below shall
occur automatically without the giving of any such notice):  (i) declare the Total Revolving Credit
Commitment or the Total Swingline Commitment terminated and whereupon any such
Commitment, if any, of each Lender or the Swingline Lender, as the case may be,
shall forthwith terminate immediately and any Fees theretofore accrued shall
forthwith become due and payable without any other notice of any kind, (ii) declare
the principal of and any accrued interest and fees in respect of all Loans 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 the Borrower; (iii) terminate
any Letter of Credit that may be terminated in accordance with its terms;
and/or (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 11.5 with respect to the Borrower or any Specified Subsidiary,
it will pay) to the Administrative Agent at the Administrative Agent’s Office
such additional amounts of cash, to be held as security for the Borrower’s
reimbursement obligations for Drawings that may subsequently occur thereunder,
equal to the aggregate Stated Amount of all Letters of Credit issued and then
outstanding.

 

11.12       Borrower’s
Right to Cure.

 

(a)                           Financial
Performance Covenants. 
Notwithstanding anything to the contrary contained in this Section 11,
in the event that the Borrower fails to comply with the requirements of any
Financial Performance Covenant, until the expiration of the 10th day subsequent
to the date the certificate calculating such Financial Performance Covenant is
required to be delivered pursuant to Section 9.1(d), Holdings or the
Borrower shall have the right to issue Permitted Cure Securities for cash or
otherwise receive cash contributions to the capital of Holdings or the Borrower
(collectively, the “Cure Right”), and upon the receipt by the

 

104

 

Borrower of
such cash (the “Cure Amount”) pursuant to the exercise by the Borrower
of such Cure Right such Financial Performance Covenant shall be recalculated
giving effect to the following pro forma adjustments:

 

(i)            Consolidated
EBITDA shall be increased, solely for the purpose of measuring the Financial
Performance Covenants and not for any other purpose under this Agreement, by an
amount equal to the Cure Amount; and

 

(ii)           If, after
giving effect to the foregoing recalculations, the Borrower shall then be in
compliance with the requirements of all Financial Performance Covenants, the
Borrower shall be deemed to have satisfied the requirements of the Financial
Performance Covenants as of the relevant date of determination with the same
effect as though there had been no failure to comply therewith at such date,
and the applicable breach or default of the Financial Performance Covenants
that had occurred shall be deemed cured for this purposes of this Agreement.

 

(b)                           Limitation
on Exercise of Cure Right. 
Notwithstanding anything herein to the contrary, (a) in each four
fiscal-quarter period there shall be at least two consecutive fiscal quarters
during which the Cure Right is not exercised and (b) the Cure Amount shall
be no greater than the amount required for purposes of complying with the Financial
Performance Covenants.

 

SECTION 12.         The Administrative Agent

 

12.1         Appointment.  Each Lender hereby irrevocably designates and
appoints the Administrative Agent as the agent of such Lender under this
Agreement and the other Credit Documents, and each such Lender irrevocably
authorizes the Administrative Agent, in such capacity, to take such action on
its behalf under the provisions of this Agreement and the other Credit
Documents and to exercise such powers and perform such duties as are expressly delegated
to the Administrative Agent by the terms of this Agreement and the other Credit
Documents, together with such other powers as are reasonably incidental
thereto.  Notwithstanding any provision
to the contrary elsewhere in this Agreement, the Administrative Agent shall not
have any duties or responsibilities, except those expressly set forth herein,
or any fiduciary relationship with any Lender, and no implied covenants,
functions, responsibilities, duties, obligations or liabilities shall be read into
this Agreement or any other Credit Document or otherwise exist against the
Administrative Agent.  The Syndication
Agent, in its capacity as such, shall have no obligations, duties or
responsibilities under this Agreement but shall be entitled to all benefits of
this Section 12.

 

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

 

12.3         Exculpatory
Provisions.  Neither the
Administrative Agent nor any of its officers, directors, employees, agents,
attorneys-in-fact or Affiliates shall be (a) liable for

 

105

 

any action lawfully taken or
omitted to be taken by it or such Person under or in connection with this
Agreement or any other Credit Document (except for its or such Person’s own
gross negligence or willful misconduct) or (b) responsible in any manner
to any of the Lenders for any recitals, statements, representations or
warranties made by the Borrower, any Guarantor, any other Credit Party or any
officer thereof contained in this Agreement or any other Credit Document or in
any certificate, report, statement or other document referred to or provided
for in, or received by the Administrative Agent under or in connection with,
this Agreement or any other Credit Document or for the value, validity,
effectiveness, genuineness, enforceability or sufficiency of this Agreement or
any other Credit Document or for any failure of the Borrower, any Guarantor or
any other Credit Party to perform its obligations hereunder or thereunder.  The Administrative Agent shall not be under
any obligation to any Lender to ascertain or to inquire as to the observance or
performance of any of the agreements contained in, or conditions of, this
Agreement or any other Credit Document, or to inspect the properties, books or
records of the Borrower.

 

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

 

12.5         Notice
of Default.  The Administrative Agent
shall not be deemed to have knowledge or notice of the occurrence of any
Default or Event of Default hereunder unless the Administrative Agent has
received notice from a Lender or the Borrower referring to this Agreement,
describing such Default or Event of Default and stating that such notice is a “notice
of default”.  In the event that the
Administrative Agent receives such a notice, the Administrative Agent shall
give notice thereof to the Lenders.  The
Administrative Agent shall take such action with respect to such Default or
Event of Default as shall be reasonably directed by the Required Lenders,
provided that unless and until the Administrative Agent shall have received
such directions, the Administrative Agent may (but shall not be obligated to)
take such action, or refrain from taking such action, with respect to such
Default or Event of Default as it shall deem advisable in the best interests of
the Lenders (except to the extent that this Agreement requires that such action
be taken only with the approval of the Required Lenders or each of the Lenders,
as applicable).

 

106

 

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

 

12.7         Indemnification.  The Lenders agree to indemnify the
Administrative Agent in its capacity as such (to the extent not reimbursed by
the Borrower and without limiting the obligation of the Borrower to do so),
ratably according to their respective portions of the Total Credit Exposure in
effect on the date on which indemnification is sought (or, if indemnification
is sought after the date upon which the Commitments shall have terminated and
the Loans shall have been paid in full, ratably in accordance with their
respective portions of the Total Credit Exposure in effect immediately prior to
such date), from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind whatsoever that may at any time (including at any time following
the payment of the Loans) be imposed on, incurred by or asserted against the
Administrative Agent in any way relating to or arising out of, the Commitments,
this Agreement, any of the other Credit Documents or any documents contemplated
by or referred to herein or therein or the transactions contemplated hereby or
thereby or any action taken or omitted by the Administrative Agent under or in
connection with any of the foregoing, provided that no Lender shall be liable
for the payment of any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting from the Administrative Agent’s gross negligence or willful
misconduct.  The agreements in this Section 12.7
shall survive the payment of the Loans and all other amounts payable hereunder.

 

12.8         Administrative
Agent in its Individual Capacity. 
The Administrative Agent and its Affiliates may make loans to, accept
deposits from and generally

 

 

107

 

engage in any kind of
business with the Borrower, any Guarantor and any other Credit Party as though
the Administrative Agent were not the Administrative Agent hereunder and under
the other Credit Documents.  With respect
to the Loans made by it, the Administrative Agent shall have the same rights
and powers under this Agreement and the other Credit Documents as any Lender
and may exercise the same as though it were not the Administrative Agent, and
the terms “Lender” and “Lenders” shall include the Administrative Agent in its
individual capacity.

 

12.9         Successor
Agent.  The Administrative Agent may
resign as Administrative Agent upon 20 days’ prior written notice to the
Lenders and the Borrower.  If the
Administrative Agent shall resign as Administrative Agent under this Agreement
and the other Credit Documents, then the Required Lenders shall appoint from
among the Lenders a successor agent for the Lenders, which successor agent
shall be approved by the Borrower (which approval shall not be unreasonably
withheld), whereupon such successor agent shall succeed to the rights, powers
and duties of the Administrative Agent, and the term “Administrative Agent”
shall mean such successor agent effective upon such appointment and approval,
and the former Administrative Agent’s rights, powers and duties as
Administrative Agent shall be terminated, without any other or further act or
deed on the part of such former Administrative Agent or any of the parties to
this Agreement or any Lenders or other holders of the Loans.  After any retiring Administrative Agent’s
resignation as Administrative Agent, the provisions of this Section 12
shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was Administrative Agent under this Agreement and the other Credit
Documents.

 

12.10       Withholding
Tax.  To the extent required by any
applicable law, the Administrative Agent may withhold from any interest payment
to any Lender an amount equivalent to any applicable withholding tax, except
taxes imposed as a result of a current or former connection unrelated to this
Agreement between the Administrative Agent and any jurisdiction outside of the
United States imposing such tax.  If the
Internal Revenue Service or any authority of the United States or other
jurisdiction asserts a claim that the Administrative Agent did not properly
withhold tax from amounts paid to or for the account of any Lender (because the
appropriate form was not delivered, was not properly executed, or because such
Lender failed to notify the Administrative Agent of a change in circumstances
which rendered the exemption from, or reduction of, withholding tax
ineffective, or for any other reason), such Lender shall indemnify the
Administrative Agent fully for all amounts paid, directly or indirectly, by the
Administrative Agent as tax or otherwise, including penalties and interest,
together with all expenses incurred, including legal expenses, allocated staff
costs and any out of pocket expenses.

 

12.11       Collateral
Agent.  Each Lender hereby further
authorizes the Administrative Agent to appoint the Collateral Agent to act on
behalf of the Lenders, and authorizes the Collateral Agent, on behalf of and
for the benefit of Lenders, to be the agent for and representative of the
Lenders with respect to the Collateral and the Security Documents.

 

SECTION 13.         Miscellaneous

 

13.1         Amendments
and Waivers.  Neither this Agreement
nor any other Credit Document, nor any terms hereof or thereof may be amended,
supplemented or modified except in accordance with the provisions of this Section 13.1.  The Required Lenders may, or,

 

108

 

with the written consent of
the Required Lenders, the Administrative Agent may, from time to time, (a) enter
into with the relevant Credit Party or Credit Parties written amendments,
supplements or modifications hereto and to the other Credit Documents for the
purpose of adding any provisions to this Agreement or the other Credit
Documents or changing in any manner the rights of the Lenders or the Credit
Parties hereunder or thereunder or (b) waive, on such terms and conditions
as the Required Lenders or the Administrative Agent, as the case may be, may
specify in such instrument, any of the requirements of this Agreement or the
other Credit Documents or any Default or Event of Default and its consequences;
provided, however, that no such waiver, amendment, supplement or
modification shall directly (i) forgive any portion of any Loan or extend
the final scheduled maturity date of any Loan or reduce the stated rate, or
forgive any portion, or extend the date for the payment, of any interest or fee
payable hereunder (other than as a result of waiving the applicability of any
post-default increase in interest rates), or reduce or extend the date for
payment of any Unpaid Drawings, or extend the final expiration date of any
Lender’s Commitment or extend the final expiration date of any Letter of Credit
beyond the date specified in Section 3.1(a), or increase the aggregate
amount of any Commitment of any Lender, or amend or modify any provisions of Section 13.8(a) or
any other provision that provides for the pro rata nature of disbursements by
or payments to Lenders, in each case without the written consent of each Lender
directly and adversely affected thereby, or (ii) amend, modify or waive
any provision of this Section 13.1 or reduce the percentages specified in
the definitions of the terms “Required Term Loan Lenders”, “Required Revolving
Credit Lenders”, and “Required Lenders” or consent to the assignment or
transfer by the Borrower of its rights and obligations under any Credit
Document to which it is a party (except as permitted pursuant to Section 10.3),
in each case without the written consent of each Lender directly and adversely
affected thereby, or (iii) amend, modify or waive any provision of Section 12
without the written consent of the then-current Administrative Agent, or (iv) amend,
modify or waive any provision of Section 3 without the written consent of
the Letter of Credit Issuer, or (v) amend, modify or waive any provisions
hereof relating to Swingline Loans without the written consent of the Swingline
Lender, or (vi) change any Commitment to a Commitment of a different Class in
each case without the prior written consent of each Lender directly and
adversely affected thereby, or (vii) release all or substantially all of
the Guarantors under the Guarantee (except as expressly permitted by the
Guarantee), or release all or substantially all of the Collateral under the
Security Agreement, the Pledge Agreement and the Mortgages, in each case
without the prior written consent of each Lender, or (viii) amend Section 2.9(a) so
as to permit Interest Period intervals greater than six months without regard
to availability to Lenders, without the written consent of each Lender directly
and adversely affected thereby, or (ix) decrease any Tranche D Term Loan
Repayment Amount, extend any scheduled Tranche D Term Loan Repayment Date or
decrease the allocation of any mandatory prepayment to be received by any
Lender holding any Tranche D Term Loans, in each case without the written
consent of the Required Term Loan Lenders, or (x) amend, modify or waive
any provision of any Credit Document that would disproportionately affect the
obligation of the Borrower to make payments with respect to any Credit Facility
without the written consent of the Required Tranche D Term Loan Lenders or the
Required Tranche D Term Loan Lenders or the Revolving Credit Lenders, as
applicable.  Any such waiver and any such
amendment, supplement or modification shall apply equally to each of the
affected Lenders and shall be binding upon the Borrower, such Lenders, the
Administrative Agent and all future holders of the affected Loans.  In the case of any waiver, the Borrower, the
Lenders and the Administrative Agent shall be restored to their 

 

109

 

former positions and rights
hereunder and under the other Credit Documents, and any Default or Event of
Default waived shall be deemed to be cured and not continuing, it being
understood that no such waiver shall extend to any subsequent or other Default
or Event of Default or impair any right consequent thereon.  Notwithstanding the foregoing, (A) each
Joinder Agreement may, without the input or consent of the other Lenders,
effect such amendments to this Agreement and the other Credit Documents as may
be necessary or appropriate in the opinion of the Administrative Agent, to
effect the provisions of Section 2.14 and (B) the Administrative
Agent and the Borrower may effect such amendments to this Agreement as may be
necessary or appropriate to effect the provisions set forth in the proviso to
the definition of Required Cash.

 

In addition, notwithstanding the foregoing, this
Agreement may be amended with the written consent of the Administrative Agent,
the Borrower and the Lenders providing the relevant Replacement Term Loans (as
defined below) to permit the refinancing, replacement or modification of all
outstanding Term Loans (“Refinanced Term Loans”) with a replacement term
loan tranche hereunder (“Replacement Term Loans”), provided that (a) the
aggregate principal amount of such Refinanced Term Loans shall not exceed the
aggregate principal amount of such Refinanced Term Loans, (b) the
Applicable Margin for such Replacement Term Loans shall not be higher than the
Applicable Margin for such Refinanced Term Loans, (c) the weighted average
life to maturity of such Replacement Term Loans shall not be shorter than the
weighted average life to maturity of such Refinanced Term Loans at the time of
such refinancing (except to the extent of nominal amortization for periods
where amortization has been eliminated as a result of the prepayment of
applicable Term Loans) and (d) all other terms applicable to such
Replacement Term Loans shall be substantially identical to, or no less
favorable to the Lenders providing such Replacement Term Loans than those
applicable to such Refinanced Term Loans, except to the extent necessary to
provide for covenants and other terms applicable to any period after the latest
final maturity of the Term Loans of such Class in effect immediately prior
to such refinancing.

 

13.2         Notices.  (a)  All notices, requests and demands
to or upon the respective parties hereto to be effective shall be in writing
(including by facsimile transmission or other electronic transmission) and,
unless otherwise expressly provided herein, shall be deemed to have been duly
given or made when delivered, or three days after being deposited in the mail,
postage prepaid, or, in the case of telecopy notice, when received, addressed
as follows in the case of the Borrower and the Administrative Agent, and as set
forth on Schedule 1.1(b) in the case of the other parties hereto, or
to such other address as may be hereafter notified by the respective parties
hereto:

 

                                The Borrower:

 

                                LPL Holdings, Inc.

                                9785
Towne Centre Drive

                                San
Diego, California 92121-1968

                                Attention:  Chief Financial Officer

                                Telecopier:  858-642-7455

 

                                With
a copy to:

                                LPL
Holdings, Inc.

 

 

110

 

                                1
Beacon Street, 22nd Floor

                                Boston,
Massachusetts 02108-3100

                                Attention:
General Counsel

                                Telecopier:
617-536-2811

 

 

                                The
Administrative Agent and the Collateral Agent:

 

                                Morgan
Stanley Senior Funding, Inc.

                                One
Pierrepont Plaza, 7th Floor

                                300
Cadman Plaza West

                                Brooklyn,
New York 11201

                                Attention:  Larry Benison

                                                  Eric De Santis

                                Telephone:
718-754-7299 / 7290

                                Telecopier:
718-754-7249 / 7250

                                E-mail:
larry.benison@morganstanley.com

                                             Eric.desantis@morganstanley.com

 

 

provided, that any
notice, request or demand to or upon the Administrative Agent or the Lenders
pursuant to Sections 2.3, 2.6, 2.9, 4.2 and 5.1 shall not be effective until
received.

 

(B)                           Notices and other communications to the Lenders
and the Letter of Credit Issuer hereunder may be delivered or furnished by
electronic communication (including e-mail and Internet or intranet websites)
pursuant to procedures approved by Administrative Agent and the Borrower; provided,
that the foregoing shall not apply to notices to any Lender or the Letter of
Credit Issuer pursuant to Section 2 if such Lender or the Letter of Credit
Issuer, as applicable, has notified the Administrative Agent that it is
incapable of receiving notices under such Section 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.  Unless Administrative Agent otherwise
prescribes, (i) notices and other communications sent to an e-mail address
shall be deemed received 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) notices or communications posted to an Internet or
intranet website shall be deemed received upon the deemed receipt by the
intended recipient at its e-mail address as described in the foregoing
clause (i) of notification that such notice or communication is
available and identifying the website address therefor.

 

 

111

 

 

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

 

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

 

13.5         Payment
of Expenses and Taxes; Indemnification. 
(a)  The Borrower agrees (i) to pay or reimburse the Agents
for all their reasonable out-of-pocket costs and expenses incurred in
connection with the development, preparation and execution of, and any consent,
waiver, amendment, supplement or modification to, this Agreement and the other
Credit Documents and any other documents prepared in connection herewith or
therewith, and the consummation and administration of the transactions
contemplated hereby and thereby, including the reasonable fees, disbursements
and other charges of one counsel to the Agents with statements with respect to
the foregoing to be submitted to the Borrower prior to the Effective Date (in
the case of amounts to be paid on the Effective Date and from time to time
thereafter on a quarterly basis), (ii) to pay or reimburse each Lender and
the Administrative Agent and the Collateral Agent for all their reasonable and
documented costs and expenses incurred in connection with the enforcement or
preservation of any rights under this Agreement, the other Credit Documents and
any such other documents, including the reasonable fees, disbursements and
other charges of one counsel to the Administrative Agent and the Collateral
Agent (unless there is an actual or perceived conflict of interest in which
case each such Person may retain its own counsel), and one counsel for the
Lenders (unless there is an actual or perceived conflict of interest in which
case each Lender affected thereby may retain its own counsel), (iii) to
pay, indemnify, and hold harmless each Lender and each Agent from any and all
reasonable out-of-pocket costs and expenses of creating and perfecting Liens in
favor of the Collateral Agent, for the benefit of the Secured Parties including
recording and filing fees, UCC search fees, title insurance premiums (to the
extent not directly paid to the applicable insurer) and any and all liabilities
with respect to, or resulting from, any delay in paying, stamp, excise and
other similar taxes, if any, that may be payable or determined to be payable in
connection with the execution and delivery of, or consummation or
administration of any of the transactions contemplated by, or any amendment,
supplement or modification of, or any waiver or consent under or in respect of,
this Agreement, the other Credit Documents and any such other documents, and (iv) to
pay, indemnify and hold harmless each Lender, the Collateral Agent and the
Administrative Agent and their respective Affiliates, directors, officers,
employees, trustees, attorneys, advisors and agents from and against any and
all other liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever, including reasonable and documented fees, disbursements and other
charges of one counsel to the Administrative Agent and the Collateral Agent
(unless there is an actual or perceived conflict of interest in which case each
such Person may retain its own counsel) and one counsel for the Lenders (unless
there is an actual or perceived conflict of interest in which case each Lender

 

112

 

affected
thereby may retain its own counsel), with respect to the execution, delivery,
enforcement, performance and administration of this Agreement, the other Credit
Documents and any such other documents, including any of the foregoing relating
to the violation of, noncompliance with or liability under, any Environmental
Law or any actual or alleged presence of Hazardous Materials applicable to the
operations of the Borrower, any of its Subsidiaries or any of the Real Estate
(all the foregoing in this clause (iv), collectively, the “indemnified
liabilities”); provided, that the Borrower shall have no obligation
hereunder to the Agents or any Lender nor any of their respective Affiliates,
directors, officers, employees, trustees and agents with respect to indemnified
liabilities arising from the gross negligence or willful misconduct of the
party to be indemnified or disputes among the Agents, the Lenders and/or their
transferees not arising from any act or omission of the Borrower or any other
Credit Party.  If for any reason the
foregoing indemnification is unavailable to any Agent or Lender or insufficient
to hold it harmless, then the Borrower shall contribute to the amount paid or
payable by such Agent or such Lender as a result of such loss, claim, damage or
liability in such proportion as is appropriate to reflect the relative economic
interests of (i) Holdings, the Borrower and its Subsidiaries on the one
hand and (ii) such Agent or such Lender on the other hand in the matters
contemplated by the Credit Documents as well as the relative fault of (i) Holdings,
the Borrower and its Subsidiaries and (ii) such Agent or such Lender with
respect to such loss, claim, damage or liability and any other relevant
equitable considerations.

 

(b)                           No
Credit Party nor any Person indemnified pursuant to clause (iv) of Section 13.5(a) shall
have any liability for any punitive, indirect or consequential damages
resulting from this Agreement or any other Credit Document or arising out of
its activities in connection herewith or therewith (whether before or after the
Closing Date).

 

(c)                           The
agreements in this Section 13.5 shall survive repayment of the Loans and
all other amounts payable hereunder.

 

13.6         Successors
and Assigns; Participations and Assignments.  (a)  The provisions of this Agreement
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns permitted hereby (including any Affiliate of
the Letter of Credit Issuer that issues any Letter of Credit), except that (i) the
Borrower may not assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of each Lender (and any attempted
assignment or transfer by the Borrower without such consent shall be null and
void) and (ii) no Lender may assign or otherwise transfer its rights or
obligations hereunder except in accordance with this Section.  Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties
hereto, their respective successors and assigns permitted hereby (including any
Affiliate of the Letter of Credit Issuer that issues any Letter of Credit),
Participants (to the extent provided in paragraph (c) of this
Section) and, to the extent expressly contemplated hereby, the Related Parties
of each of the Administrative Agent, the Letter of Credit Issuer and the
Lenders) any legal or equitable right, remedy or claim under or by reason of
this Agreement.

 

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

 

113

 

understood that, without
limitation, the Borrower shall have the right to withhold its consent to any
assignment if, in order for such assignment to comply with applicable law, the
Borrower would be required to obtain the consent of, or make any filing or
registration with, any Governmental Authority, other than routine filings or
registrations) of:

 

(A)          the
Borrower; provided, that no consent of the Borrower shall be required
for an assignment to a Lender, an Affiliate of a Lender (unless increased costs
would result therefrom, except if an Event of Default under Section 11.1
or Section 11.5 has occurred and is continuing), an Approved Fund or, if
an Event of Default under Section 11.1 or Section 11.5 has occurred
and is continuing, any other assignee; and

 

(B)           the
Administrative Agent, and, in the case of Revolving Credit Commitments or
Revolving Credit Loans, the Swingline Lender, and in the case of Revolving
Credit Commitments, the Letter of Credit Issuer; provided, that no
consent of the Administrative Agent, the Swingline Lender or the Letter of
Credit Issuer shall be required for an assignment of (x) any Commitment to
an assignee that is a Lender with a Commitment of the same Class immediately
prior to giving effect to such assignment or (y) any Term Loan to a
Lender, an Affiliate of a Lender or an Approved Fund.

 

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

 

(A)          except
in the case of an assignment to a Lender, an Affiliate of a Lender or an
Approved Fund or an assignment of the entire remaining amount of the assigning
Lender’s Commitments or Loans of any Class, the amount of the Commitments or
Loans of the assigning Lender subject to each such assignment (determined as of
the date the Assignment and Acceptance with respect to such assignment is
delivered to the Administrative Agent) shall not be less than, in the case of
Revolving Commitments or Revolving Loans, $5,000,000, or in the case of a
Tranche D Term Loan Commitment, a New Term Loan Commitment or Term Loans,
$1,000,000 (provided that for purposes of calculating such minimum amounts of
Term Loans, any assignment of a Tranche D Term Loan Commitment or a New Term
Loan Commitment shall be aggregated), unless each of the Borrower and the
Administrative Agent otherwise consents; provided, that no such consent
of the Borrower shall be required if an Event of Default under Section 11.1
or Section 11.5 has occurred and is continuing; and provided, further,
that contemporaneous assignments to a single assignee made by affiliated
Lenders or Approved Funds and contemporaneous assignments by a single assignor
made to affiliated Lenders or Approved Funds shall be aggregated for purposes
of meeting the minimum assignment amount requirements stated above;

 

(B)           each
partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender’s rights and obligations under this Agreement;
provided that this paragraph shall not be construed to prohibit the

 

114

 

assignment of a
proportionate part of all the assigning Lender’s rights and obligations in
respect of one Class of Commitments or Loans;

 

(C)           the
parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Acceptance; and

 

(D)          the
assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an administrative questionnaire in a form approved by the Administrative
Agent.

 

For the purpose of this Section 13.6(b), the
term “Approved Fund” has the following meaning:

 

“Approved Fund” means any Person (other than a
natural person) that is engaged in making, purchasing, holding or investing in
bank loans and similar extensions of credit in the ordinary course and that is
administered, advised or managed by (a) a Lender, (b) an Affiliate of
a Lender or (c) an entity or an Affiliate of an entity that administers,
advises or manages a Lender.

 

(iii)          Subject
to acceptance and recording thereof pursuant to paragraph (b)(v) of
this Section, from and after the effective date specified in each Assignment
and Acceptance, the assignee thereunder shall be a party hereto and, to the
extent of the interest assigned by such Assignment and Acceptance, have the
rights and obligations of a Lender under this Agreement, and the assigning
Lender thereunder shall, to the extent of the interest assigned by such
Assignment and Acceptance, be released from its obligations under this
Agreement (and, in the case of an Assignment and Acceptance covering all of the
assigning Lender’s rights and obligations under this Agreement, such Lender
shall cease to be a party hereto but shall continue to be entitled to the
benefits of Sections 2.10, 2.11, 3.5, 5.4 and 13.5).  Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this Section 13.6
shall be treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with paragraph (c) of
this Section.

 

(iv)          The
Administrative Agent, acting for this purpose as an agent of the Borrower, shall
maintain at the Administrative Agent’s Office a copy of each Assignment and
Acceptance delivered to it and a register for the recordation of the names and
addresses of the Lenders, and the Commitments of, and principal amount of the
Loans and any payment made by the Letter of Credit Issuer under any Letter of
Credit owing to, each Lender pursuant to the terms hereof from time to time
(the “Register”).  Further, the
Register shall contain the name and address of the Administrative Agent and the
lending office through which each such Person acts under this Agreement.  The entries in the Register shall be
conclusive, and the Borrower, the Administrative Agent, the Letter of Credit
Issuer and the Lenders may treat each Person whose name is recorded in the Register
pursuant to the terms hereof as a Lender hereunder for all purposes of this
Agreement, notwithstanding notice to the contrary.  The Register, as in effect at the close of
business on the preceding Business Day, shall be available for inspection by the
Borrower, the Letter of Credit Issuer and any Lender, at any reasonable time
and from time to time upon reasonable prior notice.

 

 

115

 

 

(v)           Upon its
receipt of a duly completed Assignment and Acceptance executed by an assigning
Lender and an assignee, the assignee’s completed administrative questionnaire
(unless the assignee shall already be a Lender hereunder) and any written
consent to such assignment required by paragraph (b)(i) of this
Section, the Administrative Agent shall accept such Assignment and Acceptance
and record the information contained therein in the Register.  No assignment shall be effective for purposes
of this Agreement unless and until it has been recorded in the Register as
provided in this paragraph.

 

(c)                           (i) 
Any Lender may, without the consent of the Borrower, the Administrative Agent,
the Letter of Credit Issuer or the Swingline Lender, sell participations to one
or more banks or other entities (each, a “Participant”) in all or a portion
of such Lender’s rights and obligations under this Agreement (including all or
a portion of its Commitments and the Loans owing to it), provided that (A) such
Lender’s obligations under this Agreement shall remain unchanged, (B) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (C) the Borrower, the Administrative
Agent, the Letter of Credit Issuer and the other Lenders shall continue to deal
solely and directly with such Lender in connection with such Lender’s rights
and obligations under this Agreement. 
Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to
enforce this Agreement and to approve any amendment, modification or waiver of
any provision of this Agreement or any other Credit Document, provided that
such agreement or instrument may provide that such Lender will not, without the
consent of the Participant, agree to any amendment, modification or waiver
described in the first proviso to Section 13.1 that affects such
Participant.  Subject to paragraph (c)(ii) of
this Section, the Borrower agrees that each Participant shall be entitled to
the benefits of Sections 2.10, 2.11 and 5.4 to the same extent as if it were a
Lender and had acquired its interest by assignment pursuant to paragraph (b) of
this Section.  To the extent permitted by
law, each Participant also shall be entitled to the benefits of Section 13.8(b) as
though it were a Lender, provided such Participant agrees to be subject to Section 13.8(a) as
though it were a Lender.

 

(ii)           A
Participant shall not be entitled to receive any greater payment under Section 2.10,
2.11, 3.5 or 5.4 than the applicable Lender would have been entitled to receive
with respect to the participation sold to such Participant, unless the sale of
the participation to such Participant is made with the Borrower’s prior written
consent.  A Participant that would be a
Non-U.S. Lender if it were a Lender shall not be entitled to the benefits of Section 5.4
unless the Borrower is notified of the participation sold to such Participant
and such Participant agrees, for the benefit of the Borrower, to comply with Section 5.4(b) as
though it were a Lender.

 

(d)                           Any
Lender may, without the consent of the Borrower or the Administrative Agent, at
any time pledge or assign a security interest in all or any portion of its
rights under this Agreement to secure obligations of such Lender, including any
pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section shall
not apply to any such pledge or assignment of a security interest, provided
that no such pledge or assignment of a security interest shall release a Lender
from any of its obligations hereunder or substitute any such pledgee or
assignee for such Lender as a party hereto. 
In order to facilitate such pledge or assignment, the Borrower hereby
agrees that, upon request of any Lender at any time and from time to time after
the Borrower has made its initial borrowing hereunder, the Borrower, as the 

 

 

116

 

case may
be, shall provide to such Lender, at the Borrower’s own expense, a promissory
note, substantially in the form of Exhibit I-1, I-2 or I-3, as the case
may be, evidencing Tranche D Term Loans, New Term Loans and Revolving Credit
Loans and Swingline Loans, respectively, owing to such Lender.

 

(e)                           Subject
to Section 13.16, the Borrower authorizes each Lender to disclose to any
Participant, secured creditor of such Lender or assignee (each, a “Transferee”)
and any prospective Transferee any and all financial information in such Lender’s
possession concerning the Borrower and its Affiliates that has been delivered
to such Lender by or on behalf of the Borrower and its Affiliates pursuant to
this Agreement or which has been delivered to such Lender by or on behalf of
the Borrower and its Affiliates in connection with such Lender’s credit
evaluation of the Borrower and its Affiliates prior to becoming a party to this
Agreement.

 

13.7         Replacements
of Lenders under Certain Circumstances. 
(a)  The Borrower shall be permitted to replace any Lender (or any
Participant) that (a) requests reimbursement for amounts owing pursuant to
Section 2.10, 2.11, 3.5 or 5.4, (b) is affected in the manner
described in Section 2.10(a)(iii) and as a result thereof any of the
actions described in such Section is required to be taken or (c) becomes
a Defaulting Lender, with a replacement bank or other financial institution; provided,
that (i) such replacement does not conflict with any Applicable Law, (ii) no
Event of Default shall have occurred and be continuing at the time of such
replacement, (iii) the Borrower shall repay (or the replacement bank or
institution shall purchase, at par) all Loans and other amounts (other than any
disputed amounts) pursuant to Section 2.10, 2.11, 3.5 or 5.4, as the case
may be, owing to such replaced Lender prior to the date of replacement, (iv) the
replacement bank or institution, if not already a Lender, and the terms and
conditions of such replacement, shall be reasonably satisfactory to the
Administrative Agent, (v) the replaced Lender shall be obligated to make
such replacement in accordance with the provisions of Section 13.6 and (vi) any
such replacement shall not be deemed to be a waiver of any rights that the
Borrower, the Administrative Agent or any other Lender shall have against the
replaced Lender or that the replaced Lender shall have against the Borrower and
the other parties for indemnity, contribution, payment of disputed and other
unpaid amounts and otherwise.

 

(b)                           If
any Lender (such Lender a “Non-Consenting Lender”) has failed to consent
to a proposed amendment, waiver, discharge or termination, which pursuant to
the terms of Section 13.1 requires the consent of all of the Lenders
affected and with respect to which the Required Lenders shall have granted
their consent, then provided no Default or Event of Default then exists, the
Borrower shall have the right (unless such Non-Consenting Lender grants such
consent) to replace such Non-Consenting Lender by requiring such Non-Consenting
Lender to assign its Loans and Commitments to one or more assignees reasonably
acceptable to the Administrative Agent, provided that: (i) all
Obligations of the Borrower owing to such Non-Consenting Lender (including any
fee owed to such Non-Consenting Lender pursuant to Section 5.1(b)) being
replaced shall be paid in full to such Non-Consenting Lender concurrently with
such assignment, and (ii) the replacement Lender shall purchase the
foregoing by paying to such Non-Consenting Lender a price equal to the
principal amount thereof plus accrued and unpaid interest thereon.  In connection with any such assignment, the
Borrower, the Administrative Agent, such Non-Consenting Lender and the
replacement Lender shall otherwise comply with Section 13.6.

 

 

117

 

 

13.8         Adjustments;
Set-off.  (a)  If any Lender (a “benefited
Lender”) shall at any time receive any payment of all or part of its Loans,
or interest thereon, or receive any collateral in respect thereof (whether
voluntarily or involuntarily, by set-off, pursuant to events or proceedings of
the nature referred to in Section 10.5, or otherwise), in a greater proportion
than any such payment to or collateral received by any other Lender, if any, in
respect of such other Lender’s Loans or interest thereon, such benefited Lender
shall purchase for cash from the other Lenders a participating interest in such
portion of each such other Lender’s Loans, or shall provide such other Lenders
with the benefits of any such collateral, or the proceeds thereof, as shall be
necessary to cause such benefited Lender to share the excess payment or
benefits of such collateral or proceeds ratably with each of the Lenders; provided, however, that if all or any portion
of such excess payment or benefits is thereafter recovered from such benefited
Lender, such purchase shall be rescinded, and the purchase price and benefits
returned, to the extent of such recovery, but without interest.

 

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

 

13.9         Counterparts.  This Agreement may be executed by one or more
of the parties to this Agreement on any number of separate counterparts
(including by facsimile or other electronic transmission), and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument.  A set of the copies of this
Agreement signed by all the parties shall be lodged with the Borrower and the
Administrative Agent.

 

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

 

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

 

 

118

 

 

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

 

13.13       Submission
to Jurisdiction; Waivers.  The
Borrower hereby irrevocably and unconditionally:

 

(a)                           submits
for itself and its property in any legal action or proceeding relating to this
Agreement and the other Credit Documents to which it is a party, or for
recognition and enforcement of any judgment in respect thereof, to the
non-exclusive general jurisdiction of the courts of the State of New York, the
courts of the United States of America for the Southern District of New York
and appellate courts from any thereof; provided, that the Borrower
agrees that it shall not commence any actions or proceedings against any Lender
or any Agent relating to this Agreement and the other Credit Documents in the
State of California;

 

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

 

(c)                           agrees
that service of process in any such action or proceeding may be effected by
mailing a copy thereof by registered or certified mail (or any substantially
similar form of mail), postage prepaid, to the Borrower at its address set
forth in Section 13.2 or at such other address of which the Administrative
Agent shall have been notified pursuant thereto;

 

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

 

(e)                           waives,
to the maximum extent not prohibited by law, any right it may have to claim or
recover in any legal action or proceeding referred to in this Section 13.13
any special, exemplary, punitive or consequential damages.

 

13.14       Acknowledgments.  The Borrower hereby acknowledges that:

 

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

 

(b)                           neither
the Administrative Agent nor any Lender has any fiduciary relationship with or
duty to Holdings or the Borrower arising out of or in connection with this
Agreement or any of the other Credit Documents, and the relationship between
Administrative Agent and Lenders, on one hand, and Holdings or the Borrower, on
the other hand, in connection herewith or therewith is solely that of debtor
and creditor; and

 

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

 

 

119

 

13.15       WAIVERS
OF JURY TRIAL. 
HOLDINGS, THE BORROWER, THE ADMINISTRATIVE AGENT, THE COLLATERAL AGENT
AND THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN
ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT
DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

13.16       Confidentiality.  The Collateral Agent, the Administrative
Agent and each Lender shall hold all non-public information (other than
non-public information that becomes public other than by reason of a breach of
this Section by a Person or from a known breach of any confidentiality
obligations owing to Holdings, the Borrower or any of their Subsidiaries)
furnished by or on behalf of Holdings and the Borrower in connection with such
Lender’s evaluation of whether to become a Lender hereunder or obtained by such
Lender, the Collateral Agent or the Administrative Agent pursuant to the requirements
of this Agreement (“Confidential Information”) confidential in
accordance with its customary procedure for handling confidential information
of this nature and (in the case of a Lender that is a bank) in accordance with
safe and sound banking practices and in any event may make disclosure as
required or requested by any governmental agency or representative thereof or
pursuant to legal or regulatory process or to such Lender’s, the Collateral
Agent’s, or the Administrative Agent’s attorneys, professional advisors or
independent auditors or Affiliates; provided, that unless specifically
prohibited by applicable law or court order, each Lender, the Collateral Agent
and the Administrative Agent shall notify Holdings and the Borrower of any
request by any governmental agency or representative thereof (other than any
such request in connection with an examination of the financial condition of
such Lender by such governmental agency) for disclosure of any such non-public
information prior to disclosure of such information; and provided,
further, that in no event shall any Lender, the Collateral Agent or the
Administrative Agent be obligated or required to return any materials furnished
by Holdings, the Borrower or any Subsidiary of the Borrower.  Each Lender, the Collateral Agent and the
Administrative Agent agrees that it will not provide to prospective Transferees
or to any pledgee referred to in Section 13.6(d) or to prospective
direct or indirect contractual counterparties under Interest Rate Hedging Agreements
to be entered into in connection with Loans made hereunder any of the
Confidential Information unless such Person is advises of and agrees to be
bound by the provisions of (or provisions substantially similar to) this Section 13.16.

 

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

 

13.18       Effect of Amendment and Restatement of
the Original Credit Agreement.  On
the Effective Date, the Original Credit Agreement shall be amended, restated
and superseded in its entirety.  The
parties hereto acknowledge and agree that (a) this Agreement and the other
Credit Documents, whether executed and delivered in connection herewith or
otherwise, do not constitute a novation, payment and reborrowing, or
termination of the Original Obligations under the Original Credit Agreement as
in effect prior to the Effective Date, (b) such

 

120

Original Obligations are in
all respects continuing (as amended and restated hereby) as Indebtedness and
Obligations outstanding under this Agreement and (c) this Agreement shall
supersede and replace in its entirety the Original Credit Agreement, and such
Original Credit Agreement shall be of no further force and effect.

 

13.19       Consent
of Required Lenders.  By its
execution hereof, each Tranche D Term Loan Lender party to this Agreement
consents to the amendment and restatement of the Original Credit Agreement, as
set forth herein , and the amendment, amendment and restatement, replacement or
other modification to any other Credit Documents, in each case, as so amended,
amended and restated, replaced or otherwise modified on the Effective Date in
the form entered into by the Credit Parties and the applicable Agent.  Upon the receipt of written consents from the
Required Lenders (as defined in the Original Credit Agreement) pursuant to this
Section 13.19 and Section 6.5(a), and notwithstanding any provision to
the contrary contained in the Original Credit Agreement, the Original Credit
Agreement may be amended and restated in its entirety so long as the Original
Term Loans of each Original Lender not consenting to the amendment and
restatement as provided for herein receives payment in full of the principal
of, and interest accrued on, each Original Term Loan made by it and all other
amounts owing to it or accrued for its account (other than contingent
indemnification obligations) under the Original Credit Agreement.

 

 

 

[SIGNATURE PAGE
FOLLOWS]

 

 

121

 

 

IN WITNESS WHEREOF, each of the parties hereto has
caused a counterpart of this Agreement to be duly executed and delivered as of
the date first above written.

 

	
   

  	
  LPL HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  LPL INVESTMENT HOLDINGS INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  INDEPENDENT ADVISERS GROUP CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  GLENOAK, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  LINSCO/PRIVATE LEDGER INSURANCE ASSOCIATES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

 

	
   

  	
  GOLDMAN SACHS CREDIT PARTNERS L.P., as Sole
  Lead Arranger, Sole Bookrunner, Syndication Agent and a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

 

 

	
   

  	
  MORGAN STANLEY SENIOR
  FUNDING, INC., as Administrative Agent and a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  MORGAN
  STANLEY & CO., as Collateral Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

 

 

 

SCHEDULE 1.1(B)

TO AMENDED AND RESTATED CREDIT
AGREEMENT

 

Tranche D Term Loan
Commitments

 

	
  

  Lender

  	
   

  	
  

  Tranche D Term Loan Commitment

  	
   

  	
  

  Pro

  Rata Share

  	
   

  
	
  Goldman Sachs Credit
  Partners L.P.

  	
   

  	
  $

  	
  231,233,866.49

  	
   

  	
  27.45

  	
  %

  
	
  All Continuing Lenders

  	
   

  	
  $

  	
  611,155,196.01

  	
   

  	
  72.55

  	
  %

  
	
  Total

  	
   

  	
  $

  	
  842,389,062.50

  	
   

  	
  100

  	
  %

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}]]