Document:

Exhibit 10.3

 

EXECUTION
VERSION

 

ACCURIDE CORPORATION

 

CONVERTIBLE NOTES COMMITMENT
AGREEMENT

 

October 7, 2009

 

Ladies and Gentlemen:

 

Accuride Corporation, a Delaware corporation (the “Issuer”),
proposes to offer and sell up to $140.0 million principal amount of 7.5%
Convertible Notes with the principal terms set forth in the Term Sheet for New Capital in Connection with the Proposed
Restructuring, the Non -Binding Term Sheet for Proposed Restructuring and the
Summary of Terms and Conditions for the Restructured Prepetition Senior Secured
Credit Facilities (collectively, the “Term Sheets”) attached as Exhibit A
hereto (the “New Notes”) to be issued pursuant to the Debtors’ (as
defined below) joint chapter 11 plan of reorganization (the “Plan”)
pursuant to a rights offering (the “Rights Offering”).  The New Notes will be issued pursuant to an
indenture (the “Indenture”) to be dated the Effective Date (as defined
below) and will be convertible into shares of common stock of the restructured
or reorganized Accuride Corporation (the “New Common Stock”) in
accordance with the terms set forth in the Term Sheets and the Indenture.
Pursuant to the Rights Offering, each holder of the Issuer’s 8-1/2% Senior
Subordinated Notes due 2015 (the “Old Notes”) as of a record date to be
determined shall be entitled to subscribe to the Rights Offering (each an “Eligible
Holder”), as of the date approved by the Bankruptcy Court for the
solicitation of acceptances and rejections of the Plan (the “Record Date”),
shall be offered a nontransferable subscription right (each, a “Right”)
to purchase, at par (the “Purchase Price”), up to a percentage of the
New Notes equal to such Eligible Holder’s percentage interest in the Old
Notes.  The Issuer will conduct the
Rights Offering as part of the implementation of a plan of reorganization under
chapter 11 of the United States Bankruptcy Code, 11 U.S.C.§§101 et seq. (the “Bankruptcy Code”), of the Issuer and
its subsidiaries who will be debtors and debtors-in-possession (the “Debtors”)
in the chapter 11 cases (collectively, the “Chapter 11 Case”)
pending and jointly administered in the Bankruptcy Court for the District of Delaware
(the “Bankruptcy Court”).

 

In order to facilitate the Rights Offering, pursuant
to this Agreement, and subject to the terms, conditions and limitations set
forth herein, the Issuer agrees to sell, for the Purchase Price, a principal
amount of New Notes (such New Notes in the aggregate, the “Unsubscribed New
Notes”) equal to (i) $140.0 million minus (ii) the principal amount
of New Notes offered pursuant to the Rights Offering and duly subscribed for
and paid for on or before the Expiration Time (as defined in Section 1(b))
(as the same may be adjusted as set forth herein) (such New Notes in the
aggregate, the “Purchased New Notes”), and Blackrock Financial
Management, Inc., Brigade Capital 

 

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Management, LLC, Sankaty Advisors, LLC and
Tinicum Lantern II L.L.C., each on behalf of the funds and accounts managed by
it in their capacity as purchasers pursuant to this Agreement (collectively, the
“Investors”), agree, severally and not jointly, subject to the terms and
conditions set forth in this Agreement, to purchase, its respective percentage
set forth on Schedule A hereto, and for a price per note of the Purchase
Price, on the Effective Date (as defined in Section 1(c)) the Unsubscribed
New Notes.

 

The effectiveness of this Agreement is conditioned
upon the receipt by the Investors or their counsel of evidence satisfactory to
the Investors that the Issuer has entered into (a) the Noteholders
Restructuring Support Agreement  (the “Noteholders Restructuring
Support Agreement”) with holders of  Old Notes which
beneficially own, or act as the investment advisor or manager with respect to,
at least two-thirds of the aggregate principal amount of the Old Notes then
outstanding; and (b) the Lender Restructuring Support Agreement (the “Lender
Restructuring Support Agreement”) with lenders representing more than 50%
of the aggregate principal amount of the First Out Loan Obligations (as defined
in the Credit Agreement (as defined below)) outstanding under the Credit
Agreement.

 

In consideration of the foregoing, and the
representations, warranties and covenants set forth herein, and other good and
valuable consideration, the Issuer and the Investors, severally and not
jointly, agree as follows:

 

1.                                       The Rights Offering. 
The Rights Offering will be conducted as follows:

 

(a)                                  Subject to the terms and conditions of
this Agreement (including Bankruptcy Court approval), the Issuer will offer New
Notes for subscription by holders of Rights.

 

(b)                                 The ballot forms (the “Ballots”)
or related subscription forms (the “Subscription Form”) distributed in
connection with the solicitation of acceptances and rejections of the Plan
shall provide a place whereby each Eligible Holder of Old Notes as of a record
date to be determined may exercise its Right to subscribe for up to a
percentage of the New Notes equal to such Eligible Holder’s percentage holdings
of Old Notes.  The Rights may be
exercised during a period (the “Rights Exercise Period”) to be specified
in the disclosure statement approved by the Bankruptcy Court (the “Disclosure
Statement”), which period will commence on the date the Ballots and Subscription
Forms are distributed and will end at the Expiration Time.  “Expiration Time” means 5:00 p.m.,
New York City time, on the date on which all Ballots and Subscription Forms
must be returned, or such later date as the Issuer, subject to the approval of
the Investors in their sole discretion, may specify in a notice provided to the
Investors before 9:00 a.m., New York City time, on the Business Day before
the then-effective Expiration Time.  “Business
Day” means any day other than (a) a Saturday, (b) a Sunday, (c) any
day on which commercial banks in New York, New York are required or authorized
to close by law or executive order, and (d) the Friday after Thanksgiving
Day.  The Plan shall provide that in
order to exercise a Right, each Eligible Holder shall, (i) prior to the
Expiration Time, return a duly completed 

 

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Subscription Form to
the Subscription Agent (as defined in Section 1(d)) and (ii) pay an
amount equal to the full purchase price of the principal amount of New Notes
elected to be purchased by such Eligible Holder by wire transfer or bank or
cashier’s check delivered to the Subscription Agent no later than the
Expiration Time.

 

(c)                                  The Issuer will issue the New Notes to
the Eligible Holders with respect to which Rights were validly exercised by and
payment was duly received from such holder prior to the Expiration Time on the
effective date of the Plan (the “Effective Date”).  The principal amount of New Notes to be
issued in respect of any Right will be rounded up or down to the nearest
$1,000.

 

(d)                                 If the subscription agent under the Plan
(the “Subscription Agent”) for any reason does not receive from a given
holder both a timely and duly completed Subscription Form and timely
payment of such holder’s Subscription Purchase Price prior to the Expiration
Time, the Plan shall provide that the holder shall be deemed to have
relinquished and waived its right to participate in the Rights Offering.

 

(e)                                  The Issuer hereby agrees and undertakes
to give, or instruct the Subscription Agent to give, the Investors by
electronic facsimile transmission or by electronic mail a notice conforming to
the requirements specified herein of either (i) the calculation of the
principal amount of Unsubscribed New Notes, the principal amount of Purchased
New Notes and the aggregate Purchase Price for all Unsubscribed New Notes (a “Purchase
Notice”) or (ii) in the absence of any Unsubscribed New Notes, the
fact that there are no Unsubscribed New Notes and that the Backstop Commitment
(as defined in Section 2(a)) is terminated (a “Satisfaction Notice”),
as soon as practicable after the Expiration Time and, in any event, at least
four (4) Business Days prior to the Effective Date (the date of
transmission of confirmation of a Purchase Notice or a Satisfaction Notice, the
“Determination Date”).

 

2.                                       The Backstop Commitment.

 

(a)                                  On the basis of the representations and
warranties contained herein, but subject to the conditions set forth in Section 7,
each Investor agrees to purchase from the Issuer on the Effective Date, and the
Issuer agrees to issue and sell to each Investor, at the aggregate Purchase
Price therefor, such Investor’s portion of the Unsubscribed New Notes as set
forth on Schedule A hereto (the “Backstop Commitment”).

 

(b)                                 The Issuer will pay to the Investors the
aggregate backstop commitment fee of (i) $5.6 million (the “Cash
Backstop Fee”) which shall be released to the Investors, (A) upon the
issuance of the New Notes as contemplated herein on the Effective Date, in the
form of shares of New Common Stock representing 4% of all of the Issuer’s
outstanding New Common Stock on the Effective Date (on a fully-diluted basis),
or (B) in the form of a super-priority 

 

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administrative
claim against the Issuer if this Agreement is terminated in accordance with the
terms hereof prior to the Effective Date or the New Notes are not issued on the
Effective Date pursuant to the Plan as contemplated hereby, and (ii) on
the basis of the representations and warranties herein contained, but subject
to the entry of a final, non-appealable Confirmation Order (as defined below) and
on the Effective Date, shares of New Common Stock representing 4% of all of the
Issuer’s outstanding New Common Stock on the Effective Date (on a fully-diluted
basis) (the “Stock Backstop Fee,” and together with the Cash Backstop
Fee, the “Backstop Fee”), in each case of payment to the Investors, in
such proportions per Investor as indicated in Schedule A hereto, to
compensate each such Investor for the risk of its undertakings herein; provided that in the event that any Investor defaults on its
obligation to purchase the Unsubscribed New Notes that it has agreed to
purchase hereunder, the fee allocable to such defaulting Investor shall be
re-allocated to the Investor(s) who assume such defaulting Investor’s
obligations hereunder on a pro rata basis,
or if such obligation is not assumed by any Investor, among the non-defaulting
Investors pro rata based on their respective
backstopping commitments set forth in Schedule A hereto. The New Common
Stock each Investor receives pursuant to clauses (i)(A) and/or (ii) above
shall have the benefit of substantially the same anti-dilution protection as
the New Notes. The Cash Backstop Fee and all other amounts payable hereunder
will be paid in U.S. dollars. 
Payment of the Cash Backstop Fee pursuant to clause (i)(B) above
will be made by wire transfer of immediately available funds and payment of the
Stock Backstop Fee and, if applicable, delivery of shares of New Common Stock
in exchange for the Cash Backstop Fee pursuant to clause (i)(A) above, will
be made by stock transfer of the appropriate shares of New Common Stock to the
account specified by each Investor to the Issuer at least 24 hours in
advance.  The Backstop Fee will be
payable whether or not any Unsubscribed New Notes are purchased pursuant to the
Backstop Commitment and will be nonrefundable when paid.

 

(c)                                  The Issuer will reimburse or pay, as the
case may be, the reasonable expenses of the Investors, including the fees and
expenses of Rothschild Inc., financial advisor to the Investors, and Milbank,
Tweed, Hadley & McCloy LLP and local Wilmington, Delaware counsel, as legal
advisors to the Investors and reasonable fees and expenses of any other
professionals retained by the Investors in connection with the transaction
contemplated hereby, including, but not limited to, reasonable fees and
expenses incurred in connection with the escrow of the Cash Backstop Fee contemplated
in Section 2(b) above (collectively, “Transaction Expenses”); provided that the Issuer shall not be responsible for the
fees or expenses of more than one financial advisor or more than one counsel
and one local counsel to the Investors. 
Such reimbursement or payment shall be made by the Issuer within two (2) days
of presentation of an invoice approved by the Investors, without Bankruptcy
Court review or further Bankruptcy Court order (but subject to any conditions
imposed by the Bankruptcy Court or the United States Trustee in the order
authorizing the assumption of this Agreement or the DIP Order (as defined
below)), whether or not the transactions contemplated hereby are
consummated.  These obligations are in
addition to, and 

 

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do not limit, the
Issuer’s obligations under Section 8. 
The provision for the payment of the Transaction Expenses is an integral
part of the transactions contemplated by this Agreement, and without this
provision the Investors would not have entered into this Agreement and shall,
subject to the approval of the assumption of this Agreement by the Bankruptcy
Court, constitute an administrative expense of the Issuer under section 364(c)(1) of
the Bankruptcy Code.

 

(d)                                 On the Effective Date, the individual
Investors will purchase, and the Issuer will sell to the individual Investors,
at a price equal to the Purchase Price therefor, such principal amount of
Unsubscribed New Notes as is listed in the Purchase Notice, without prejudice
to the rights of the Investors to seek later an upward or downward adjustment
if the principal amount of Unsubscribed New Notes in such Purchase Notice is
inaccurate.

 

(e)                                  Delivery of the Unsubscribed New Notes
will be made by the Issuer to the respective accounts of the Investors (or to
such other accounts as the Investors may designate) on the Effective Date
against payment of the Purchase Price for such Unsubscribed New Notes by wire
transfer of immediately available funds to the account specified by the Issuer
to the Investors at least 24 hours in advance.

 

(f)                                    All Unsubscribed New Notes will be
delivered with any and all issue, stamp, transfer or similar taxes or duties
payable in connection with such delivery duly paid by the Issuer to the extent
required under the Confirmation Order or applicable law.

 

(g)                                 The documents to be delivered on the
Effective Date by or on behalf of the parties hereto will be delivered at the
offices of Milbank, Tweed, Hadley & McCloy LLP, 1 Chase Manhattan
Plaza, New York, New York 10005 on the Effective Date.

 

(h)                                 Notwithstanding anything to the contrary
in this Agreement, each Investor, in its sole discretion, may designate that
some or all of the Unsubscribed New Notes be issued in the name of and
delivered to, one or more of its Affiliates or any other third party.

 

(i)                                     No Investor shall have any liability for
the Backstop Commitment of any other Investor.

 

3.                                       Representations and Warranties of the
Issuer.  The Issuer represents and warrants to, and
agree with, the Investors as follows. Each representation and warranty is made
as of the date hereof and on the Effective Date:

 

(a)                                  Accuracy of Information. All information, other than financial projections (the “Projections”),
that has been made available to the Investors by the Issuer or any of its
representatives, was as of the date furnished, and to the Issuer’s knowledge, is
as of the date of this Agreement, when taken together as a 

 

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whole, complete and correct in all material
respects and did not as of the date furnished, and to the Issuer’s knowledge, does
not as of the date of this Agreement, contain any untrue statement of a
material fact or omit to state a material fact necessary in order to make the
statements therein not misleading in light of the circumstances under which
such statements were made. All information, other than Projections, that is
made available in the future to the Investor by the Issuer or any of its
representatives will be, as of the date such information is furnished to the
Investors, when taken together as a whole, complete and correct in all material
respects and will not, as of such date, contain any untrue statement of a
material fact or omit to state a material fact necessary in order to make the
statements therein not misleading in light of the circumstances under which
such statements are made.  The
Projections that have been or will be prepared and made available to the Investors
by the Issuer or any of its representatives, including but not limited to those
contained in the presentation titled “Private Lender Supplement,” dated July 2009 (the
“July Projections”), have been or will be prepared in good faith based upon reasonable
assumptions at the time made, and the Issuer did not have any knowledge when it
prepared and delivered such Projections and does not have any knowledge as the
date hereof of any fact or information that would lead it to believe that such
assumptions are incorrect or misleading in any material respect (and will not deliver
any Projections in the future with such knowledge). As of the date of this
Agreement, the July Projections are the most up-to-date projections being
used as a base case by the management of the Issuer.

 

(b)                                 Incorporation and Qualification. 
The Issuer and each of the direct and indirect subsidiaries of the
Issuer has been duly organized and is validly existing as a corporation or
other form of entity, where applicable, in good standing under the laws of
their respective jurisdictions of organization, with the requisite power and
authority to own its properties and conduct its business as currently
conducted, subject, as applicable, to the restrictions that result from any
such entity’s status as a debtor-in-possession under chapter 11 of the
Bankruptcy Code.  The Issuer and each of
its subsidiaries has been duly qualified as a foreign corporation or other form
of entity for the transaction of business and, where applicable, is in good
standing under the laws of each other jurisdiction in which it owns or leases
properties or conducts business so as to require such qualification, except to
the extent the failure to be so qualified or, where applicable, be in good
standing would not reasonably be expected to have, individually or in the
aggregate, a material adverse effect on the business, results of operations,
property or financial condition of the Issuer and its subsidiaries taken as a
whole, or on the ability of the Issuer, subject to the approvals and other
authorizations set forth in Section 3(g), to consummate the transactions
contemplated by this Agreement or the Plan (a “Material Adverse Effect”).

 

(c)                                  Corporate Power and Authority.

 

(i)                                     The Issuer has the requisite corporate
power and authority to enter into, execute and deliver this Agreement and to
perform its obligations hereunder, 

 

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including the
issuance of the Rights and the New Notes. 
The Issuer has taken all necessary corporate action required for the due
authorization, execution, delivery and performance by it of this Agreement,
including the issuance of the Rights and the New Notes, other than the entry of
the Confirmation Order and the expiration, or waiver by the Bankruptcy Court,
of the 10-day period set forth in Bankruptcy Rule 3020(e) and the
need to amend its certificate of incorporation effective as of the Effective
Date.

 

(ii)                                  The distribution of the Rights and
issuance of the New Notes on the Effective Date will have been duly and validly
authorized.

 

(iii)                               Subject to entry of the Confirmation
Order and the expiration, or waiver by the Bankruptcy Court, of the 10-day
period set forth in Bankruptcy Rule 3020(e), on the Effective Date, the
Debtors will have the requisite corporate power and authority to execute the
Plan and to perform their obligations thereunder, and will have taken all
necessary corporate actions required for the due authorization, execution,
delivery and performance by the Debtors of the Plan.

 

(d)                                 Execution and Delivery; Enforceability.

 

(i)                                     This Agreement has been duly and validly
executed and delivered by the Issuer, and constitutes the valid and binding
obligations of the Issuer, enforceable against the Issuer in accordance with
its terms, subject to bankruptcy, reorganization, insolvency, moratorium and
other laws affecting the enforcement of creditors’ rights generally from time
to time in effect and subject to general equitable principles.

 

(ii)                                  On the Effective Date, the Indenture
shall have been duly authorized by the Issuer and the guarantors named therein (the
“Guarantors”) and, when executed and delivered by the Issuer, the
guarantors named therein and the trustee party thereto, will be a valid and
binding agreement of the Issuer and the Guarantors, enforceable in accordance
with its terms, except as the enforceability thereof may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
creditors’ rights generally and general principles of equity.

 

(iii)                               On the Effective Date, the New Notes
shall have been duly authorized by the Issuer and, when executed and delivered
by the Issuer and duly authenticated in accordance with the terms of the
Indenture and delivered to and paid for by the Investor in accordance with the
terms hereof, will constitute valid and binding obligations of the Issuer,
enforceable in accordance with their terms, except as the enforceability
thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or
similar 

 

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laws affecting
creditors’ rights generally and general principles of equity, and will be
entitled to the benefits of the Indenture; the maximum number of shares of New
Common Stock (the “Shares”) issuable upon conversion of the New Notes shall
have been duly authorized and validly reserved for issuance upon conversion of
the New Notes, and, upon conversion of the New Notes in accordance with their
terms and the terms of the Indenture, such Shares will be issued free of any
right of pledge, usufruct or other encumbrance, and shall be sufficient in
number to meet the current conversion requirements (assuming all conditions to
such conversion have been satisfied); such Shares, when so issued upon such
conversion in accordance with the terms of the New Notes and of the Indenture,
will be duly and validly issued and fully paid and non-assessable; and the
certificates for such Shares will be in due and proper form; and

 

(iv)                              The Plan will be duly and validly filed
with the Bankruptcy Court by the Debtors and, upon the entry of the Confirmation
Order and the expiration, or waiver by the Bankruptcy Court, of the 10-day
period set forth in Bankruptcy Rule 3020(e), will constitute the valid and
binding obligation of the Issuer, enforceable against the Issuer in accordance
with its terms, subject to general equitable principles.

 

(e)                                  No Conflict. 
Subject to the entry of the Confirmation Orders and the expiration, or
waiver by the Bankruptcy Court, of the 10-day period set forth in Bankruptcy Rules 6004(h) and
3020(e), as applicable, the distribution of the Rights, the issuance, sale and
delivery of New Notes upon exercise of the Rights and the consummation of the
Rights Offering by the Issuer, the issuance, sale and delivery of the
Unsubscribed New Notes and the execution and delivery (or, with respect to the
Plan, the filing) by the Issuer of this Agreement and the Plan and compliance
by the Issuer with all of the provisions hereof and thereof and the
consummation of the transactions contemplated herein and therein (including
compliance by each Investor with its obligations hereunder and thereunder) (i) will
not conflict with, or result in a breach or violation of, any of the terms or
provisions of, or constitute a default under, or result in the acceleration of,
or the creation of any lien under, any indenture, mortgage, deed of trust, loan
agreement or other agreement or instrument to which the Issuer or any of its
subsidiaries is a party or by which the Issuer or any of its subsidiaries is
bound or to which any of the property or assets of the Issuer or any of its
subsidiaries is subject, (ii) will not result in any violation of the
provisions of the certificate of incorporation or bylaws of the Issuer and any
other Debtor and (iii) will not result in any violation of, or any
termination or material impairment of any rights under, any statute or any
license, authorization, injunction, judgment, order, decree, rule or
regulation of any court or governmental agency or body having jurisdiction over
the Issuer or any of its subsidiaries or any of their respective properties,
except in any such

 

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case described in
subclause (i) or (iii) as would not reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect.

 

(f)                                    Consents and Approvals. 
No consent, approval, authorization, order, registration or
qualification of or with any court or governmental agency or body having
jurisdiction over the Issuer or any of its subsidiaries or any of their
respective properties or by any third party pursuant to any contract or
otherwise is required for the distribution of the Rights, the issuance, sale
and delivery of New Notes upon exercise of the Rights to the Investors
hereunder and the consummation of the Rights Offering by the Issuer and the
execution and delivery by the Issuer of this Agreement or the Plan and
performance of and compliance by the Issuer with all of the provisions hereof
and thereof and the consummation of the transactions contemplated herein and
therein, except for (i) the entry of the Confirmation Order and the
expiration, or waiver by the Bankruptcy Court, of the 10-day period set forth
in Bankruptcy Rules 6004(h) and 3020(e), as applicable; (ii) filings
with respect to and the expiration or termination of the waiting period under
the HSR Act, if applicable, (iii) such consents, approvals,
authorizations, registrations or qualifications as may be reasonably required
under state securities or “blue sky” laws in connection with the purchase of
Unsubscribed New Notes by the Investors or (iv) such consents, approvals,
authorizations, registrations or qualifications, the absence of which would not
reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect.

 

(g)                                 Financial Statements. 
The audited consolidated financial statements of the Issuer as of and
for the year ended December 31, 2008 and the unaudited consolidated
financial statements of the Issuer as of and for the six months ended June 30,
2009 previously delivered to the Investors present fairly in all material
respects, in each case together with the related notes, the financial position
of the Issuer and its consolidated subsidiaries at the dates indicated and the
statements of operations, stockholders’ equity and cash flows of the Issuer and
its consolidated subsidiaries for the periods specified, except that the
unaudited financial statements are subject to normal and recurring year-end
adjustments that are not expected to be in the aggregate material.  Such financial statements have been prepared
in conformance with generally accepted accounting principles in the United
States, except as otherwise noted in such financial statements or related
notes, applied on a consistent basis throughout the periods involved.  Each Investor acknowledges that the Issuer’s
financial statements described above do not reflect the terms of the Plan or
the effect of fresh-start accounting.

 

(h)                                 No Material Adverse Change. 
Except as disclosed in the Issuer’s Securities and Exchange Commission
(the “Commission”) filings as of the date of this Agreement (the “SEC
Filings”), since June 30, 2009 there has not (i) been any material
change in the capital stock or long-term debt of the Issuer or its
subsidiaries; (ii) been any dividend or distribution of any kind declared,
set aside for payment, paid or made by the Issuer on any class of their capital
stock; (iii) occurred (A) any event, fact or circumstance which has
had or would reasonably be expected to have, individually, or in the aggregate,
a Material Adverse Effect 

 

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on the Issuer and
its subsidiaries or (B) any loss of a significant portion of the business
of any of Daimler Truck North America, LLC, PACCAR, Inc., International
Truck and Engine Corporation or Volvo Truck Corporation (each, a “Material Adverse Change
Event”); or (iv) been
any changes with respect to the accounting policies or procedures of the Issuer
or the Debtors, except as required by law or changes in GAAP.

 

(i)                                     No Violation or Default; Licenses and
Permits.  Except as otherwise set forth in the SEC
Filings, each of the Issuer and its subsidiaries (i) is in compliance with
all laws, statutes, ordinances, rules, regulations, orders, judgments and
decrees of any court or governmental agency or body having jurisdiction over
the Issuer or any of its subsidiaries or any of their respective properties,
and (ii) has not received written notice of any alleged material violation
of any of the foregoing except, in the case of clauses (i) and (ii) above,
for any such failure to comply, default or violation that would not,
individually or in the aggregate, be reasonably expected to have a Material
Adverse Effect.  Subject to the
restrictions that result solely from the Issuer or any subsidiary’s status as a
debtor-in-possession under chapter 11 of the Bankruptcy Code (including
that in certain instances such subsidiary’s conduct of its business requires
Bankruptcy Court approval), each of the Issuer and its subsidiaries holds all
material licenses, franchises, permits, consents, registrations, certificates
and other governmental and regulatory permits, authorizations and approvals
required for the operation of the business as currently conducted by it and for
the ownership, lease or operation of its material assets, except where the
failure to possess or make the same would not, individually or in the
aggregate, have a Material Adverse Effect and is not in violation of its
certificate of incorporation, bylaws or other organizational document.  Except as otherwise set forth in the SEC
Filings, no event has occurred, with the notice or lapse of time or both, that
would constitute a default, in the due performance or observation of any term,
covenant or condition contained in any indenture, mortgage, deed of trust, loan
agreement or other agreement or instrument to which the Issuer or any of its
subsidiaries is a party or by which the Issuer or any of its subsidiaries is
subject.

 

(j)                                     Legal Proceedings. 
Except as described in the SEC Filings, there are no legal, governmental
or regulatory investigations, actions, suits or proceedings pending or, to the
knowledge of the Issuer, threatened against the Issuer or any of its
subsidiaries which, individually or in the aggregate, if determined adversely
to the Issuer or any of its subsidiaries, would reasonably be expected to have
a Material Adverse Effect.

 

(k)                                  Independent Accountants. 
Deloitte & Touche LLP (the “Accountants”), who have
certified the financial statements of the Issuer and its consolidated
subsidiaries, are an independent registered public accounting firm with respect
to the Issuer and its consolidated subsidiaries.

 

(l)                                     Title to Intellectual Property. 
The Issuer and its subsidiaries own or possess adequate rights to use
all material patents, patent applications, 

 

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trademarks,
service marks, trade names, trademark registrations, service mark
registrations, copyrights, licenses and know-how (including trade secrets and
other unpatented and/or unpatentable proprietary or confidential information,
systems or procedures) necessary for the conduct of their respective
businesses, except where the failure to own or possess any such rights could
not reasonably be expected to have a Material Adverse Effect; and, except as
could not reasonably be expected to have a Material Adverse Effect, the conduct
of their respective businesses will not conflict in any material respect with
any such rights of others, and the Issuer and its subsidiaries have not
received any written notice of any material claim of infringement or conflict
with any such material rights of others.

 

(m)                               No Undisclosed Relationships. 
No relationship, direct or indirect, exists between or among the Issuer
or any of its subsidiaries, on the one hand, and the directors, officers,
stockholders, customers or suppliers of the Issuer or any of its subsidiaries,
on the other, that is required be disclosed in the SEC Filings and that are not
so disclosed.

 

(n)                                 Investment Company Act. 
The Issuer is not, and after giving effect to the offering and sale of
the New Notes and the application of the proceeds thereof, will not be required
to register as an “investment company” or an entity “controlled” by an “investment
company” within the meaning of the Investment Company Act of 1940, as amended,
and the rules and regulations of the Commission thereunder.

 

(o)                                 Compliance With Environmental Laws. 
Except as disclosed in the SEC Filings, the Issuer and its subsidiaries (i) are
in compliance with any and all applicable federal, state, local and foreign
laws, rules, regulations, decisions and orders relating to the protection of
human health and safety, the environment or hazardous or toxic substances or
wastes, pollutants or contaminants (collectively, “Environmental Laws”);
(ii) have received and are in compliance with all permits, licenses or
other approvals required of them under applicable Environmental Laws to conduct
their respective businesses and are not aware of any actions that are pending
or threatened in writing that seek to repeal, modify, amend, revoke, limit, or
otherwise appeal or challenge any such permits, licenses or other approvals; (iii) have
not received written notice of any actual or potential liability for the
investigation or remediation of any disposal, arrangement for disposal or
release of hazardous or toxic substances or wastes, pollutants or contaminants
and (iv) are not aware of any facts, events or circumstances that could
give rise to any liability or investigatory, corrective or remedial obligations
under Environmental Laws with respect to their past or present facilities or
their respective businesses, except, in the case of each of the clauses (i),
(ii), (iii) and (iv), as would not, individually or in the aggregate, have
a Material Adverse Effect.

 

(p)                                 Compliance With ERISA. Each “employee benefit plan” as defined in Section 3(3) of the
U.S. Employee Retirement Income Security Act of 1974, as amended, including the
regulations and published interpretations 

 

11

 

thereunder (“ERISA”), as to which the
Issuer or, to the Issuer’s knowledge, any of its subsidiaries has or could have
any liability, is in compliance in all material respects with all applicable
provisions of ERISA and the U.S. Internal Revenue Code of 1986, as amended,
including the regulations thereunder (the “Code”), each such “employee
benefit plan” has been established and administered in accordance with its
terms and each of the Issuer and its subsidiaries is in compliance in all
material respects with its obligations under ERISA and the Code with respect to
each such “employee benefit plan”. Each “employee benefit plan” for which the
Issuer or its subsidiaries could have any liability that is intended to be
qualified under Section 401(a) of the Code is so qualified in all
respects and nothing has occurred, whether by action or by failure to act,
which would cause the loss of such qualification, except as would not,
individually or in the aggregate result in a Material Adverse Effect. Except as
would not, individually or in the aggregate, result in a Material Adverse Effect,
(i) no “reportable event” (within the meaning of Section 4043(c) of
ERISA) has occurred with respect to any “employee benefit plan” for which the
Issuer, or any entity that is required to be aggregated with the Issuer
pursuant to Section 414 of the Code (an “ERISA Affiliate”), could
have any liability; (ii) each of the Issuer and any ERISA Affiliate has
not incurred and does not expect to incur liability under Title IV of ERISA
other than for PBGC premiums due but not delinquent under Section 4007 of
ERISA; (iii) neither the Issuer or any of its subsidiaries has incurred nor
do any such entities expect to incur liability under Section 4971 or 4975
of the Code; and (iv) no “employee benefit plan” for which the Issuer or
any ERISA Affiliate could have any liability has failed to satisfy the minimum
funding standard (within the meaning of Section 412 of the Code or Section 302
of ERISA) applicable to such plan, or filed pursuant to Section 412(c) of
the Code or Section 302(c) of ERISA of an application for a waiver of
the minimum funding standard with respect to any such “employee benefit plan”.

 

(q)                                 Accounting Controls. 
The Issuer and its subsidiaries maintain systems of internal accounting
controls designed in accordance with applicable law to provide reasonable
assurance that (i) transactions are executed in accordance with management’s
general or specific authorizations; (ii) transactions are recorded as
necessary to permit preparation of financial statements in conformity with
generally accepted accounting principles and to maintain asset accountability; (iii) access
to assets is permitted only in accordance with management’s general or specific
authorization; and (iv) the recorded accountability for assets is compared
with the existing assets at reasonable intervals and appropriate action is
taken with respect to any differences.

 

(r)                                    Insurance.  Except as
would not, individually or in the aggregate, result in a Material Adverse
Effect, the Issuer and its subsidiaries have insurance covering their respective
properties, operations, personnel and businesses, including business
interruption insurance, which insurance is in amounts and insures against such
losses and risks as are customary for companies whose businesses are similar to
the Issuer and its subsidiaries; and as of the date hereof, neither the Issuer
nor any of its subsidiaries has (i) received written notice from 

 

12

 

any insurer or
agent of such insurer that capital improvements or other material expenditures
are required or necessary to be made in order to continue such insurance or (ii) any
reason to believe that it will not be able to renew its existing insurance
coverage as and when such coverage expires or to obtain similar coverage at
reasonable cost from similar insurers as may be necessary to continue its
business.

 

(s)                                  No Unlawful Payments. 
Neither the Issuer nor any of its subsidiaries nor, to the knowledge of
the Issuer, any director, officer, agent, employee or other person associated with
or acting on behalf of the Issuer or any of its subsidiaries has (i) used
any corporate funds for any unlawful contribution, gift, entertainment or other
unlawful expense relating to political activity, (ii) made any direct or
indirect unlawful payment to any foreign or domestic government official or
employee from corporate funds, (iii) violated or is in violation of any
provision of the Foreign Corrupt Practices Act of 1977 or (iv) made any
bribe, rebate, payoff, influence payment, kickback or other unlawful payment.

 

(t)                                    No Restrictions on Certain Dividends and
Other Payments.  The Issuer’s direct and indirect subsidiaries
are not currently prohibited, directly or indirectly, under any agreement or
other instrument to which it is a party, other than under the Issuer’s Fourth
Amended and Restated Credit Agreement dated as of January 31, 2005 (as
amended by the First Amendment dated as of November 28, 2007, the Second
Amendment dated as of January 28, 2009 and the Third Amendment dated as of
August 14, 2009 and as may be further amended from time to time, the “Credit
Agreement”), from paying any dividends to its parent, from making any other
distribution on such subsidiary’s capital stock, from repaying to the Issuer or
any other subsidiary of the Issuer any loans or advances to such subsidiary
from the Issuer or from any other subsidiary of the Issuer or from transferring
any of such subsidiary’s properties or assets to the Issuer or any other
subsidiary of the Issuer.

 

(u)                                 No Broker’s Fees. 
None of the Issuer or any of its subsidiaries is a party to any
contract, agreement or understanding with any person (other than this
Agreement) that would give rise to a valid claim against the Investors for a
brokerage commission, finder’s fee or like payment in connection with the
offering and sale of the Rights or the New Notes.

 

(v)                                 Labor Relations. Except as set forth in the SEC Filings:

 

(i)                                     neither the Issuer nor any of its
subsidiaries is a party to, or bound by, any material collective bargaining
agreement, contract or other agreement or understanding with a labor union or
labor organization (other than contracts or other agreements or understandings
with labor unions or labor organizations in connection with products and
services offered and sold to such unions and organizations by the Issuer or its
subsidiaries);

 

13

 

(ii)                                  neither the Issuer nor any of its
subsidiaries is the subject of any proceeding asserting that it or any
subsidiary has committed an unfair labor practice or sex, age, race or other
discrimination or seeking to compel it to bargain with any labor organization
as to wages or conditions of employment, which, individually or in the
aggregate, has had or would reasonably be expected to have a Material Adverse
Effect;

 

(iii)                               there are no current or, to the knowledge
of the Issuer, threatened organizational activities or demands for recognition
by a labor organization seeking to represent employees of the Issuer or any
subsidiary and no such activities have occurred during the past 24 months that
has had or would reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect;

 

(iv)                              no grievance, arbitration, litigation or
complaint or, to the knowledge of the Issuer, investigations relating to labor
or employment matters is pending or, to the knowledge of the Issuer, threatened
against the Issuer or any of its subsidiaries which, except as has not had, and
would not reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect;

 

(v)                                 the Issuer and each of its subsidiaries
has complied and is in compliance in all respects with all applicable laws
(domestic and foreign), agreements, contracts, and policies relating to
employment, employment practices, wages, hours, and terms and conditions of
employment and is not engaged in any material unfair labor practice as
determined by the National Labor Relations Board (or any foreign equivalent)
except where the failure to comply has not had or would not reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect;

 

(vi)                              the Issuer has complied in all respects
with its payment obligations to all employees of the Issuer and its
subsidiaries in respect of all wages, salaries, commissions, bonuses, benefits
and other compensation due and payable to such employees under any Issuer
policy, practice, agreement, plan, program or any statute or other law, except
to the extent that any noncompliance, either individually or in the aggregate,
has not had and would not reasonably be expected to have a Material Adverse
Effect; and

 

(vii)                           the Issuer has complied and is in
compliance in all respects with its obligations pursuant to the Worker
Adjustment and Retraining Notification Act of 1988 (and any similar state or
local law) to the extent applicable, and all material other employee
notification and bargaining obligations arising under any collective 

 

14

 

bargaining
agreement or statute, except to the extent that any noncompliance, either
individually or in the aggregate, has not had and would not reasonably be
expected to have a Material Adverse Effect.

 

(w)                               Title to Real and Personal Property. The Issuer and its subsidiaries have
good and marketable title to all real property owned by the Issuer and its
subsidiaries and good title to all other tangible and intangible properties
(other than Intellectual Property covered by Section 3(m) owned by
them, in each case, free and clear of all mortgages, pledges, liens, security
interests, claims, restrictions or encumbrances of any kind except such as (i) are
described in the SEC Filings or (ii) individually and in the aggregate,
have not had and would not reasonably be expected to have a Material Adverse
Effect. All of the leases and subleases to which the Issuer or its subsidiaries
are a party are in full force and effect and enforceable by the Issuer or such
subsidiary in accordance with their terms, and neither the Issuer nor any
subsidiary has received any written notice of any claim that has been asserted
by anyone adverse to the rights of the Issuer or any subsidiary under any of
the leases or subleases mentioned above, or affecting or questioning the rights
of the Issuer or such subsidiary to the continued possession of the leased or
subleased property by under any such lease or sublease, except where any such
claim or failure to be enforceable would not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect.

 

(x)                                   Tax Matters. Except where any such
failure has not had or would not be expected to have a Material Adverse Effect:
(i) the Issuer
(and each subsidiary) has filed all material Tax Returns required to be filed
by applicable law prior to the date hereof; such Tax Returns were true,
complete and correct; and the Issuer (and each subsidiary) (A) has paid
all Taxes that are due and payable and (B) has recorded reserves for any Taxes in accordance
with GAAP;  (ii) there are no Tax
liens upon the assets of the Issuer (or any subsidiary) except liens for Taxes
not yet due or payable; (iii) neither the Issuer nor any subsidiary has
executed any outstanding waivers or comparable consents regarding the
application of the statute of limitations for any Taxes or Tax Returns (and no
extensions of any statutory periods have been executed on their behalf); (iv) no
audits or other administrative proceedings or court proceedings are presently
pending or to the knowledge of Issuer threatened with regard to any Taxes or
Tax Returns of the Issuer (or any subsidiary); (v) the Issuer (and each
subsidiary) has withheld and paid all material Taxes required to have been
withheld and paid in connection with amounts paid or owing to any employee,
independent contractor, creditor, stockholder, or other third party, and all
Forms W-2 and 1099 required with respect thereto have been properly completed
and timely filed; (vi) the Issuer is not a United States real property
holding corporation within the meaning of Code section 897(c)(2); (vii) neither
the Issuer nor any subsidiary has any liability for Taxes of any person other
than the Issuer and its subsidiaries under Treasury Regulation §1.1502-6 (or
any similar provision of state, local, or non-U.S. law); and (viii) neither
the Issuer nor any subsidiary is a party to or bound by any tax

 

15

 

allocation or tax sharing agreement. Neither the Issuer nor any subsidiary is or has
been party to any “listed transaction” as defined in Code §6707A(c)(2) and
Treas. Reg. §1.6011-4(b)(2).  As used in
this Section 3(x), “Taxes” means any federal, state, local, or
foreign income, gross receipts, license, payroll, employment, excise,
severance, stamp, occupation, premium, windfall profits, environmental
(including taxes under Code §59A), customs duties, capital stock, franchise,
profits, withholding, social security (or similar), unemployment, disability,
real property, personal property, sales, use, transfer, registration, value
added, alternative or add-on minimum, estimated, or other tax of any kind
whatsoever, including any interest, penalty, or addition thereto; and “Tax
Return” means any return, declaration, report, claim for refund, or
information return or statement relating to Taxes, including any schedule or
attachment thereto, and including any amendment thereof.

 

4.                                       Representations and Warranties of the
Investors.  Each of the Investors, severally and not
jointly, represents and warrants to, and agrees, with respect to itself only,
with, the Issuer as set forth below. 
Each representation, warranty and agreement is made as of the date
hereof and as of the Effective Date:

 

(a)                                  Organization. 
Such Investor has been duly incorporated or formed, as the case may be,
and is validly existing as a corporation or a limited partnership, as the case
may be, in good standing under the laws of its jurisdiction of organization.

 

(b)                                 Corporate Power and Authority. 
Such Investor has the requisite corporate power and authority to enter
into, execute and deliver this Agreement and to perform its obligations
hereunder and has taken all necessary action required for the due
authorization, execution, delivery and performance by it of this Agreement.

 

(c)                                  Execution and Delivery. 
This Agreement has been duly and validly executed and delivered by such
Investor and constitutes its valid and binding obligation, enforceable against
such Investor in accordance with its terms, subject to general equitable
principles.

 

(d)                                 No Conflicts. 
The execution, delivery, and performance by such Investor of this
Agreement do not and shall not (i) violate any provision of its
certificate of incorporation or by-laws (or other organizational documents) or
any law, rule, or regulation applicable to it or (ii) conflict with,
result in a breach of, or constitute (with due notice or lapse of time or both)
a default under any material contractual obligation to which it is a party or
under its certificate of incorporation or by-laws (or other organizational
documents).

 

(e)                                  Proceedings.  
No litigation or proceeding before any court, arbitrator, or
administrative or governmental body is pending against it that would adversely
affect such Investor’s ability to enter into this Agreement or perform its
obligations hereunder.

 

16

 

(f)                                    Consents and Approvals. 
No consent, approval, order, authorization, registration or
qualification of or with any court or governmental agency or body having
jurisdiction over such Investor or such Investor’s affiliates, is required in
connection with the execution and delivery of this Agreement or the
consummation of the transactions contemplated hereby, except for any
consent, approval, order or authorization required under the Bankruptcy Code.

 

(g)                                 Sufficiency of Funds. 
Such Investor has, or is the investment advisor or investment manager
for entities that have, and on the Effective Date will have or is the
investment advisor or investment manager for entities that will have,
sufficient immediately available funds to make and complete the payment of the
aggregate Purchase Price for its portion of the Unsubscribed New Notes and the
availability of such funds is not subject to the consent, approval or
authorization of any third party.

 

(h)                                 Sophistication and Investment Intent.  Such
Investor has such knowledge, sophistication and experience in business and
financial matters so as to be capable of evaluating the merits and risks of the
prospective investment in the New Notes, and has so evaluated the merits and
risks of such investment.  Such Investor
is, as of the date hereof and will be as of the Effective Date, an “accredited
investor” within the meaning of Rule 501(a) under the Securities Act
of 1933, as amended (the “Securities Act”). Such Investor understands
and is able to bear any economic risks associated with such investment
(including, without limitation, the necessity of holding such Unsubscribed New
Notes for an indefinite period of time or the complete loss of such
investment).  Such Investor is acquiring
the New Notes in good faith solely for its own account or accounts managed by
it, for investment and not with a view toward distribution within the meaning
of the Securities Act.  Such Investor
acknowledges that the Issuer will rely upon the truth and accuracy of the
foregoing as well as the other representations, warranties and other agreements
of such Investor in connection with the transactions described in this
Agreement.

 

(i)                                     Information. 
Such Investor acknowledges that it has been afforded the opportunity to
ask questions and receive answers concerning the Issuer and to obtain
additional information.  Notwithstanding
the foregoing, nothing contained herein will operate to modify or limit in any
respect the representations and warranties of the Issuer or to relieve the
Issuer from any obligations to such Investor for breach thereof or the making
of misleading statements or the omission of material facts in violation of
applicable law in connection with the transactions contemplated herein.

 

5.                                      Additional Covenants of the Issuer. 
The Issuer agrees with the Investors:

 

(a)                                  First Day Motions, Disclosure Statement
and Plan.  The Issuer will file each of the first day
motions in connection with the Chapter 11 Case as set forth on Schedule I
of the Noteholders Restructuring Support Agreement on the date the Debtors file
petitions commencing the Chapter 11 Case (the “Chapter 11 

 

17

 

Commencement Date”). In accordance with the Term Sheets, the DIP Order (as defined
below) and the post-petition debtor-in-possession financing (“DIP
Financing”) agreement (as amended, restated, supplemented or
otherwise modified in accordance with the terms thereof, the “DIP Agreement”, and together
with the Term Sheets and the DIP Order, the “Restructuring Support Documents”)
attached to the Interim DIP Order (as defined below) in Exhibit B
hereto, the Issuer
will prepare and file with the Bankruptcy Court a Disclosure Statement and Plan
reflecting the terms and conditions set forth in the Restructuring Support
Documents and in form and substance reasonably acceptable to the Required
Investors and use commercially reasonable efforts to seek Bankruptcy Court
approval thereof under sections 1125 and 1129 of the Bankruptcy Code as
set forth in the Restructuring Support Documents.  Prior to filing or disseminating any
revision, supplement, modification or amendment to the Plan, the Disclosure
Statement or any version of the Plan or the Disclosure Statement, the Issuer
will provide counsel to the Investors a copy of such filing, revision,
modification, supplement or amendment and a reasonable opportunity to review
and comment on such documents prior to being filed or disseminated; provided
that such review and comment shall not constitute a presumption or other
determination that the documents constitute (and comply with the definition of)
either a Plan or a Disclosure Statement, as applicable.  In addition, the Issuer will provide counsel to
the Investors a copy of a draft of the Confirmation Order and a reasonable
opportunity to review such draft prior to such order being filed with the
Bankruptcy Court.  The Debtors shall not
make any revision, supplement, modification or amendment to the Plan or the
Disclosure Statement that would change, in a manner that is adverse to the
Investors, any of the terms set forth on the Term Sheets attached as Exhibit A
hereto without the prior written consent of (i) 50% of the Investors (by
purchase obligation) (the “Required Investors”), and (ii) with
respect to any change that adversely affects a New Notes Investor in a manner
different from the other New Notes Investors, 
the consent of each such New Notes Investor, and if such consent is not obtained, such non-consenting New Notes
Investor shall have no further obligations whatsoever under this Agreement.

 

(b)                                 Rights Offering. 
To effectuate the Rights Offering as provided herein and to use
commercially reasonable efforts to seek entry of an order of the Bankruptcy
Court, prior to the commencement of the Rights Offering, authorizing the Issuer
and the other Debtors to conduct the Rights Offering pursuant to the securities
exemption provisions set forth in section 1145(a) of the Bankruptcy
Code.

 

(c)                                  Notification. 
To notify, or to cause the Subscription Agent to notify, on each Friday
during the Rights Exercise Period and on each Business Day during the five (5) Business
Days prior to the Expiration Time (and any extensions thereto), or more
frequently if reasonably requested by an Investor, each Investor of the
aggregate principal amount of Rights known by the Issuer or the Subscription
Agent to have been exercised pursuant to the Rights Offering as 

 

18

 

of the close of business on the preceding Business Day or the most
recent practicable time before such request, as the case may be.

 

(d)                                 Unsubscribed New Notes. 
To determine, or instruct the Subscription Agent to determine, the
principal amount of Unsubscribed New Notes, if any, in good faith, and to
provide, or instruct the Subscription Agent to provide a Purchase Notice or a
Satisfaction Notice that reflects the principal amount of Unsubscribed New
Notes as so determined and to provide to the Investors, such written backup to
the determination of the Unsubscribed New Notes as an Investor may reasonably
request.

 

(e)                                  Use of Proceeds. 
The Issuer will apply the net proceeds from the sale of the New Notes as
provided in the Term Sheets.

 

(f)                                    No Stabilization. The Issuer will not take, directly or
indirectly, any action designed to or that could reasonably be expected to
cause or result in any stabilization or manipulation of the price of the New
Notes.

 

(g)                                 Registration Rights Agreement. 
The Issuer will file with the Bankruptcy Court as soon as practicable a
form of a registration rights agreement (the “Registration Rights Agreement”)
in form and substance reasonably acceptable to the Issuer and the Required
Investors.  The Issuer and the Investors
shall use commercially reasonable efforts to negotiate and execute, and seek
Bankruptcy Court approval of, the Registration Rights Agreement as promptly as
practicable.

 

(h)                                 Conduct of Business. 
During the period from the date of this Agreement to the Effective Date
, the Issuer and its subsidiaries shall carry on their businesses in the
ordinary course (subject to any actions which are consistent with the SEC
Filings and any limitations on such actions under the Bankruptcy Code) and, to
the extent consistent therewith, use their commercially reasonable efforts to
preserve intact their current business organizations, keep available the
services of their current officers and employees and preserve their
relationships with customers, suppliers, licensors, licensees, distributors and
others having business dealings with the Issuer or its subsidiaries.  Without limiting the generality of the
foregoing, and except as otherwise expressly provided or permitted by this
Agreement, prior to the Effective Date, the Issuer shall not, and shall cause
its subsidiaries not to, take any of the following actions without the prior
written consent of the Required Investors, which consent shall not be unreasonably
withheld, conditioned or delayed:

 

(i)                                     (A) declare, set aside
or pay any dividends on, or make any other distributions in respect of, any of
its capital stock (other than upstream dividends by a direct or indirect
wholly-owned subsidiary of the Issuer to the Issuer or another direct or
indirect subsidiary of the Issuer), (B) split, combine or reclassify any
of its capital stock or issue or authorize the issuance of any other securities
in respect of, in lieu of or in 

 

19

 

substitution for shares of its capital stock or (C) purchase,
redeem or otherwise acquire, except in connection with the Plan, any shares of
capital stock of the Issuer or any other securities thereof or any rights,
warrants or options to acquire any such shares or other securities;

 

(ii)                                  except for intercompany
transactions and any financing activities which are consistent with the Issuer’s
existing financing, issue, deliver, grant, sell, pledge, dispose of or
otherwise encumber any of its capital stock or any securities convertible into,
or any rights, warrants or options to acquire, any such capital stock at less
than fair market value;

 

(iii)                               acquire or agree to acquire
by merging or consolidating with, or by purchasing a substantial portion of the
stock, or other ownership interests in, or substantial portion of assets of, or
by any other manner, any business or any corporation, partnership, association,
joint venture, limited liability company or other entity or division thereof except
in the ordinary course of business;

 

(iv)                              sell, lease, mortgage,
pledge, grant a lien, mortgage, pledge, security interest, charge, claim or
other encumbrance of any kind or nature on or otherwise encumber or dispose of
any of its properties or assets, except (A) in the ordinary course of
business, (B) to the extent required in connection with the DIP Financing
and (C) other transactions involving not in excess of $5 million in
any 12 month period;

 

(v)                                 other than ordinary course
trade payables and in connection with raw materials or foreign exchange hedging
transactions or the DIP Financing, incur any indebtedness for borrowed money or
guarantee any such indebtedness of another individual or entity, issue or sell
any debt securities or warrants or other rights to acquire any debt securities
of the Issuer, guarantee any debt securities of another individual or entity,
enter into any “keep well” or other agreement to maintain any financial
statement condition of another person (other than a subsidiary) or enter into
any arrangement having the economic effect of any of the foregoing in excess of
$5 million in any 12 month period;

 

(vi)                              except for the previously
negotiated collective bargaining agreement covering Accuride Canada, Inc.,
enter into any new, or amend or supplement any existing, collective bargaining
agreement; or

 

(vii)                           authorize any of, or commit
or agree to take any of, the foregoing actions.

 

(i)                                     Access to Information. Subject to applicable law and existing
confidentiality agreements between the parties (provided
that, unless otherwise agreed upon between the Issuer and any particular Investor,  prior to receipt of any such information by
such Investor, such Investor shall enter into an 

 

20

 

amendment to its confidentiality agreement to remove any requirement
for the Issuer to disclose material non-public information under Section 4
thereof and such amendment shall be effective until the earlier of the
Effective Date or the date on which this Agreement is terminated in accordance
with the terms herein), upon reasonable notice, the Issuer shall (and shall
cause its subsidiaries to) afford the Investors and their respective directors,
officers, employees, investment bankers, attorneys, accountants and other
advisors or representatives, reasonable access, throughout the period prior to
the Effective Date, to its employees, properties, books, contracts and records
and, during such period, the Issuer shall (and shall cause its subsidiaries to)
furnish promptly to the Investors all information concerning its business,
properties and personnel as may reasonably be requested by any Investor;
provided, that the foregoing shall not require the Issuer (i) to permit
any inspection, or to disclose any information, that in the reasonable judgment
of the Issuer would cause the Issuer to violate any of its obligations with
respect to confidentiality to a third party if the Issuer shall have used
commercially reasonable efforts to obtain the consent of such third party to
such inspection or disclosure, (ii) to disclose any privileged information
of the Issuer or any of its subsidiaries or (iii) to violate any laws;
provided, further, that the Issuer shall deliver to the Investors a schedule
setting in forth in reasonable detail a description of any information not
provided to the Investors pursuant to subclauses (i) through (iii) above.

 

(j)                                     Financial Information. For each month, beginning October 31,
2009 until the Expiration Time, the Issuer shall provide to each Investor an
unaudited consolidated balance sheet and related unaudited consolidated statements
of operations and consolidated statements of cash flows for the month then
ended within 30 days of the end of such month (the “Monthly Financial
Statements”). The Monthly Financial Statements, except as indicated therein,
shall be prepared in accordance with the Issuer’s normal financial reporting
practices.

 

(k)                                  Amendments to Organizational Documents. 
The Issuer will amend its certificate of incorporation, bylaws and any
other required organizational documents to provide for the governance rights
granted to holders of the New Notes as set forth in the Term Sheets.

 

6.                                       Additional Covenants of the Investors. 
Each of the Investors, severally and not jointly, agrees with the
Issuer, with respect to itself only:

 

(a)                                  No Inconsistent Action. 
To not file any pleading or take any other action in the Bankruptcy
Court with respect to this Agreement, the Plan, the Disclosure Statement or the
Confirmation Order of the consummation of the transactions contemplated hereby
or thereby that is inconsistent in any material respect with this Agreement or
the Issuer’s efforts to obtain the entry of court orders consistent with this
Agreement other than to enforce such Investor’s rights and remedies at law or
equity, or to enforce the terms of the Restructuring Support Documents or this
Agreement.

 

21

 

(b)                                 Transfer Restrictions. Such Investor acknowledges that
Unsubscribed New Notes to be purchased by it pursuant to the terms of this
Agreement have not been registered under the Securities Act and that the
Company shall not be required to effect any registration of the Unsubscribed
New Notes under the Securities Act or any state securities law except as
contemplated in the Registration Rights Agreement.  Such Investor acknowledges that Unsubscribed
New Notes will only be disposed of pursuant to an effective registration
statement under the Securities Act or pursuant to an available exemption from
the registration requirements of the Securities Act, and in compliance with any
applicable state securities laws.

 

7.                                       Conditions.

 

(a)                                  Conditions to the Obligations of Each
Party.  The respective obligations of the Investors
and the Issuer to effect the purchase of the Unsubscribed New Notes pursuant to
this Agreement on the Effective Date are subject to the following conditions:

 

(i)                                     Confirmation Order. 
An order of the Bankruptcy Court confirming a Plan consistent with the
Restructuring Support Documents (the “Confirmation Order”) shall have
been entered and such order shall be final and non-appealable, shall not have
been appealed within ten (10) days of entry or, if such order is appealed,
shall not have been stayed pending appeal, and there shall not have been
entered by any court of competent jurisdiction any reversal, modification or
vacatur, in whole or in part, of the Confirmation Order.

 

(ii)                                  Conditions to Confirmation. 
The conditions to confirmation and the conditions to the Effective Date
of the Plan shall have been satisfied or waived in accordance with the Plan.

 

(iii)                               Documentation. The Issuer and the Investors shall have
received all the documentation required to consummate the transaction
contemplated hereby, including but not limited to the Indenture and, in the
case of the Investors, an officers’ certificate of the Issuer certifying as to
the effect of Section 7(b)(i) hereof and other documents and certificates
as the Issuer and the Investors may reasonably require, each duly executed and
in form and substance reasonably satisfactory to the Issuer and the Required
Investors.

 

(iv)                              Rights Offering. 
The Expiration Time shall have occurred.

 

(v)                                 No Restraint. 
No judgment, injunction, decree or other legal restraint shall prohibit
the consummation of the Plan, the Rights Offering or the transactions
contemplated by this Agreement.

 

(vi)                              HSR Act; Regulatory Approvals. 
If the purchase of Unsubscribed New Notes by any Investor pursuant to
this Agreement is subject to the terms of the HSR Act or the laws of any
relevant foreign jurisdiction, the applicable 

 

22

 

waiting period
shall have expired or been terminated thereunder with respect to such purchase.

 

(vii)                           No Legal Impediment to Issuance. No action shall have been taken and no
statute, rule, regulation or order shall have been enacted, adopted or issued
in each by any federal, state or foreign governmental or regulatory authority
that, as of the Effective Date, prohibits the issuance or sale of the Rights or
the New Notes or the Purchased New Notes or the sale of the Unsubscribed New
Notes pursuant to this Agreement; and no injunction or order of any federal,
state or foreign court shall have been issued that, as of the Effective Date,
prohibits the issuance or sale of the Rights or the New Notes or the Purchased
New Notes or the resale of the Unsubscribed New Notes pursuant to the
Agreement.

 

(viii)                        Consents. All other material governmental and third party
notifications, filings, consents, waivers and approvals required for the
consummation of the transactions contemplated by this Agreement and the Plan
shall have been made or received.

 

(b)                                 Conditions to the Obligations of the
Investors.  The obligation of the Investors to purchase
the Unsubscribed New Notes pursuant to this Agreement on the Effective Date are
subject to the following conditions:

 

(i)                                     Representations and Warranties and
Covenants.  The representations and warranties of the
Issuer set forth in this Agreement (other than such representations and
warranties set forth in Section 3(h)(iii)) (disregarding all
qualifications and exceptions contained therein regarding materiality or
Material Adverse Effect) shall be true and correct on the date hereof and on
the Effective Date as if made on such date, except, where the failure of such
representations and warranties to be so true and correct, individually or in
the aggregate, would not reasonably be expected to have a Material Adverse
Effect. The Issuer shall have complied in all material respects with all of its
material obligations hereunder.

 

(ii)                                  No Material Adverse Change. 
Since the date of this Agreement, no Material Adverse Change Event shall
have occurred and be continuing.

 

(iii)                               Liquidity. As of the Effective Date, the Issuer and its
consolidated subsidiaries shall have minimum cash and cash equivalents of $50
million (excluding any cash used to collateralize any letter of credit),
adjusted to give effect to the restructuring contemplated under the Plan and the
consummation of the Rights Offering, the purchase of the Unsubscribed New Notes
by the Investors and the other transactions contemplated by this Agreement.

 

(iv)                              Purchase Notice. 
The Investors shall have received a Purchase Notice in accordance with Section 1(e),
dated as of the Determination Date, stating the principal amount of
Unsubscribed New Notes to be purchased pursuant to the Backstop Commitment.

 

23

 

(v)                                 Fees, Etc.  All fees and
other amounts required to be paid or reimbursed to the Investors as of the
Effective Date, including, without limitation, the Backstop Fee, shall have
been paid or reimbursed in full.

 

(vi)                              Registration Rights Agreement. The Issuer shall have entered into the
Registration Rights Agreement with the Investors in accordance with Section 5(g),
in form and substance reasonably satisfactory to the Required Investors.

 

(vii)                           Terms of New Notes. 
The New Notes shall have the terms set forth in Exhibit A hereto.

 

(c)                                  Conditions to the Obligations of the
Issuer.  The obligation of the Issuer to effect the
purchase the Unsubscribed New Notes pursuant to this Agreement on the Effective
Date are subject to the following conditions:

 

(i)                                     Representations and Warranties and
Covenants.  The representations and warranties of the
Investors set forth in this Agreement shall be true and correct in all material
respects on the date hereof and on the Effective Date as if made on such date.
The Investors shall have complied in all material respects with all of their
respective material obligations hereunder.

 

8.                                       Indemnification.

 

(a)                                  Whether or not the Rights Offering is
consummated or this Agreement is terminated, the Issuer (in such capacity, the “Indemnifying
Party”) shall indemnify and hold harmless the Investors, their respective
affiliates and their respective officers, directors, employees, agents and
controlling persons (each an “Indemnified Person”) from and against any
and all losses, claims, damages, liabilities and reasonable expenses, joint or
several, to which any such Indemnified Person may become subject arising out of
or in connection with any third party claim, challenge, litigation,
investigation or proceeding with respect to this Agreement, the Rights
Offering, the Backstop Commitment, or the transactions contemplated hereby or
thereby, including without limitation, payment of the Backstop Fee,
distribution of Rights, purchase and sale of New Notes in the Rights Offering
and purchase and sale of Unsubscribed New Notes pursuant to this Agreement, or
any breach by the Issuer of this Agreement and to reimburse such Indemnified
Persons for any reasonable legal or other reasonable out-of-pocket expenses as
they are incurred in connection with investigating, responding to or defending
any of the foregoing, provided that the foregoing indemnification will not, as
to any Indemnified Person, apply to losses, claims, damages, liabilities or
expenses to the extent that they are finally judicially determined to have
resulted from any breach of this Agreement by such Indemnified Person or bad
faith, gross negligence or willful misconduct on the part of such Indemnified
Person.  If for any reason the foregoing
indemnification is unavailable to any Indemnified Person or insufficient to
hold it harmless, then the Indemnifying Party shall contribute to the amount
paid or payable by such Indemnified Person as a result of such loss, claim,
damage, liability or expense in 

 

24

 

such proportion as
is appropriate to reflect not only the relative benefits received by the
Indemnifying Party on the one hand and such Indemnified Person on the other
hand but also the relative fault of the Indemnifying Party, on the one hand,
and such Indemnified Person, on the other hand, as well as any relevant
equitable considerations.  It is hereby
agreed that the relative benefits to the Indemnifying Party on the one hand and
all Indemnified Persons on the other hand shall be deemed to be in the same
proportion as (i) the total value received or proposed to be received by
the Issuer pursuant to the sale of New Notes contemplated by this Agreement
bears to (ii) the aggregate fee paid or proposed to be paid to the Investors
in connection with such sale.

 

(b)                                 Promptly after receipt by an Indemnified
Person of notice of the commencement of any claim, litigation, investigation or
proceeding relating to this Agreement, the Rights Offering, the Backstop
Commitment, or any of the transactions contemplated hereby or thereby (“Proceedings”),
such Indemnified Person will, if a claim is to be made hereunder against the
Indemnifying Party in respect thereof, notify the Indemnifying Party in writing
of the commencement thereof; provided that the omission so to notify the
Indemnifying Party will not relieve it from any liability that it may have
hereunder except to the extent it has been materially prejudiced by such
failure.  In case any such Proceedings
are brought against any Indemnified Person and it notifies the Indemnifying
Party of the commencement thereof, the Indemnifying Party will be entitled to
participate therein, and, to the extent that it may elect by written notice
delivered to such Indemnified Person, to assume the defense thereof, with
counsel reasonably satisfactory to such Indemnified Person, provided that if
the defendants in any such Proceedings include both such Indemnified Person and
the Indemnifying Party and such Indemnified Person shall have concluded that there
may be legal defenses available to it that are different from or additional to
those available to the Indemnifying Party, such Indemnified Persons shall have
the right to select separate counsel to assert such legal defenses and to
otherwise participate in the defense of such Proceedings on behalf of such
Indemnified Person.  Upon receipt of
notice from the Indemnifying Party to such Indemnified Person of its election
so to assume the defense of such Proceedings and approval by such Indemnified
Person of counsel, the Indemnifying Party shall not be liable to such
Indemnified Person for expenses incurred by such Indemnified Person in
connection with the defense thereof (other than reasonable costs of
investigation) unless (i) such Indemnified Person shall have employed
separate counsel in connection with the assertion of legal defenses in
accordance with the proviso to the next preceding sentence (it being
understood, however, that the Indemnifying Party shall not be liable for the
expenses of more than one separate counsel representing the Indemnified Persons
who are parties to such Proceedings), (ii) the Indemnifying Party shall
not have employed counsel reasonably satisfactory to such Indemnified Person to
represent such Indemnified Person within a reasonable time after notice of
commencement of the Proceedings or (iii) the Indemnifying Party shall have
authorized in writing the employment of counsel for such Indemnified Person.

 

25

 

(c)                                  The Indemnifying Party shall not be
liable for any settlement of any Proceedings effected without its written
consent (which consent shall not be unreasonably withheld).  If any settlement of any Proceeding is
consummated with the written consent of the Indemnifying Party or if there is a
final judgment for the plaintiff in any such Proceedings, the Indemnifying
Party agrees to indemnify and hold harmless each Indemnified Person from and
against any and all losses, claims, damages, liabilities and expenses by reason
of such settlement or judgment in accordance with, and subject to the
limitations of, the provisions of this Section 8.  The Indemnifying Party shall not, without the
prior written consent of an Indemnified Person (which consent shall not be
unreasonably withheld), effect any settlement of any pending or threatened
Proceedings in respect of which indemnity has been sought hereunder by such
Indemnified Person unless (a) such settlement includes an unconditional
release of such Indemnified Person in form and substance reasonably
satisfactory to such Indemnified Person from all liability on the claims that
are the subject matter of such Proceedings and (b) does not include any
statement as to or any admission of fault, culpability or a failure to act by
or on behalf of any Indemnified Person.

 

9.                                       Acknowledgements and Agreements of the
Debtors.  Notwithstanding anything herein to the
contrary, the Debtors acknowledge and agree that (a) the transactions
contemplated hereby are arm’s-length commercial transactions between the Issuer
and the Debtors, on the one hand, and the Investors, on the other, (b) in
connection therewith and with the processes leading to such transactions, each
Investor is acting solely as a principal and not the agent or fiduciary of the
Issuer or the Debtors or their estates, (c) the Investors have not assumed
advisory or fiduciary responsibilities in favor of the Issuer or the Debtors or
their estates with respect to such transactions or the processes leading
thereto and (d) the Issuer and the Debtors have consulted their own legal
and financial advisors to the extent they deemed appropriate.

 

10.                                 Defaulting Investor.

 

(a)                                  If any Investor defaults on its
obligation to purchase the Unsubscribed New Notes that it has agreed to
purchase hereunder, the non-defaulting Investors may in their discretion
arrange for the purchase of such Unsubscribed New Notes by other persons
satisfactory to the Issuer (including such non-defaulting Investors on a pro
rata basis) on the terms contained in this Agreement. As used in this
Agreement, the term “Investor” includes, for all purposes of this Agreement
unless the context otherwise requires, any person not listed in Schedule A
hereto that, pursuant to this Section 10, purchases the Unsubscribed New
Notes that a defaulting Investor agreed but failed to purchase.

 

(b)                                 If, after giving effect to any
arrangements for the purchase of the Unsubscribed New Notes of a defaulting
Investor or Investors by the non-defaulting Investors and the Issuer as
provided in paragraph (a) above, the Issuer shall not have initiated
litigation against the defaulting Investor or Investors seeking specific
performance of their obligations under this Agreement and the aggregate
principal amount of Unsubscribed New Notes that remain unpurchased 

 

26

 

on the Effective
Date exceeds $15.0 million, then this Agreement shall terminate without
liability on the part of the non-defaulting Investors.  Any termination of this Agreement pursuant to
this Section 10 shall be without liability on the part of the Issuer,
except that the Issuer will continue to be liable for the payment of expenses
as set forth in Section 3(c) hereof and except that the provisions of
Section 8 hereof shall not terminate and shall remain in effect.

 

(c)                                  Nothing contained herein shall relieve a
defaulting Investor of any liability it may have to the Issuer or any
non-defaulting Investor for damages caused by its default.

 

11.                                 Survival of Representations and
Warranties.  The representations and warranties made in
this Agreement will survive the execution and delivery of this Agreement for
the length of the applicable statute of limitations with respect thereto.

 

12.                                 Termination.

 

(a)                                  This Agreement shall automatically
terminate:

 

(i)                                     if the assumption of this Agreement by
the Debtors has not been approved by the Bankruptcy Court by final order within
thirty-five (35) days after the date on which the Debtors file petitions
commencing the Chapter 11 Case;

 

(ii)                                  if the purchase and sale contemplated by Section 2(a) have
not occurred by April 15, 2010;

 

(iii)                               if the Noteholders Restructuring Support
Agreement has been terminated by any of the parties thereto for whatever
reasons; or

 

(iv)                              if the Lenders Restructuring Support
Agreement has been terminated by any of the parties thereto for whatever
reasons.

 

(b)                                 The Required Investors may, acting
collectively, terminate this Agreement:

 

(i)                                     if the Issuer or any of the other Debtors
has failed to meet any of the deadlines set forth in Section 6 of the
Noteholders Restructuring Support Agreement as in effect at the time;

 

(ii)                                  if the Debtors shall not have provided
evidence satisfactory to the Required Noteholders that lenders representing at
least 67% of the aggregate principal amount of the First Out Loan Obligations
(as defined in the Credit Agreement) outstanding under the Credit Agreement
have executed the Lender Restructuring Support Agreement within seven (7) Business
Days after the entry of a order by the Bankruptcy Court approving the
Disclosure Statement;

 

(iii)                               upon the failure of any of the conditions
set forth in Section 7 hereof to be satisfied, which failure cannot be
cured by April 15, 2010;

 

27

 

(iv)                              if the Issuer makes a public announcement
that it intends to support or supports, or enters into an agreement to support,
or files any pleading or document with the Bankruptcy Court indicating its
intention to support, or support, any Competing Transaction; or the Issuer
enters into a Competing Transaction;

 

(v)                                 if the Issuer has materially breached its
obligations under this Agreement, the Noteholders Restructuring Support
Agreement or the Lenders Restructuring Support Agreement and such breach is not
cured (to the extent curable) within five (5) Business Days after first
being aware of such breach or the giving of written notice by any Investor to
the Issuer of such breach (whichever is earlier);

 

(vi)                              if the Plan does not conform in all
economic and other material respects to the Term Sheets with respect to the
treatment of the Old Notes;

 

(vii)                           if the Plan does not conform in all
economic and other material respects to the Term Sheets with respect to the
treatment of the Investors;

 

(viii)                        if the terms of the Plan and the exhibits
and any supplements thereto not otherwise set forth in the Restructuring
Support Documents, including any amendment or modification of any of the
foregoing, shall not be in form or substance reasonably acceptable to the
Required Investors;

 

(ix)                                if an order dismissing or converting the
chapter 11 case of any of the Debtors to a case under chapter 7 of the
Bankruptcy Code is entered by the Bankruptcy Court;

 

(x)                                   if the Debtors’ exclusive right to file a
chapter 11 plan pursuant to section 1121 of the Bankruptcy Code shall have
terminated;

 

(xi)                                any court of competent jurisdiction or
other competent governmental or regulatory authority issues a ruling,
determination, or order making illegal or otherwise restricting, preventing or
prohibiting the consummation of the Restructuring substantially on the terms
set forth in the Term Sheets and in this Agreement, including an order of the
Bankruptcy Court denying confirmation of the Plan, which ruling, determination
or order (i) has been in effect for 30 days and (ii) is not stayed;

 

(xii)                             upon the entry of an order by the
Bankruptcy Court appointing an examiner with enlarged powers relating to the
operation of the material part of the business of the Debtors, taken as a whole
(powers beyond those set forth in section 1106(a)(3) and (4) of the
Bankruptcy Code) under section 1106(b) of the Bankruptcy Code, or the
entry of an order by the Bankruptcy Court appointing a trustee under section
1104 of the Bankruptcy Code;

 

(xiii)                          if the Bankruptcy Court shall enter an
order approving a payment to any party (whether in cash or other property or
whether as adequate protection, 

 

28

 

settlement
of a dispute, or otherwise) that would be inconsistent with the treatment of
such party under the Restructuring Support Documents;

 

(xiv)        upon the entry of an order
dismissing one or more of the Debtors’ chapter 11 cases;

 

(xv)         if (A) the Issuer shall not have obtained an interim order (the “Interim
DIP Order”) substantially and in all material respects in the form attached
as Exhibit B hereto approving the DIP Financing on the terms and
conditions set forth in the DIP Agreement within five (5) days after the
Chapter 11 Commencement Date; (B) the Issuer has not obtained a final
order approving the DIP Financing (such final order, together with the Interim
DIP Order, the “DIP Order”) on the terms and conditions set forth in the
DIP Agreement within forty-five (45) days after the Chapter 11 Commencement
Date; or (C) there shall have occurred a “Termination Date” under
the DIP Order or the DIP Agreement and the enforcement by the DIP lenders of
any of their rights and remedies thereunder;

 

(xvi)        any order required to be
entered by the Bankruptcy Court under this Section 12 and Section 6
of the Noteholders Restructuring Support Agreement on a final basis shall not
become a final order within a reasonable period of time;

 

(xvii)       the Debtors shall have made
a material change to the DIP Budget (as defined in the Noteholders
Restructuring Support Agreement) without the prior written consent of the
Required Investors; or

 

(xviii)      the Plan does not receive
the requisite number of votes in favor of such Plan in number and amount in the
class of claims in which the Eligible Holders’ claims are placed.

 

(c)           If (i) this Agreement
is terminated pursuant to Section 12(b)(iii) or 12(d) and at the
time of such termination the Investors are in compliance in all material
respects with this Agreement, or (ii) this Agreement is terminated
pursuant to Section 12 (a)(ii) or Section 12(b) and within
12 months after such termination of this Agreement, the Issuer or any of its
subsidiaries (A) enters into an agreement or files any pleading or
document with the Bankruptcy Court evidencing its intention to support, or
otherwise supports, any Competing Transaction (as defined below), or (B) enters
into a Competing Transaction, in each case, if such Competing Transaction
relates to the Issuer’s sale of substantially all of its assets under Section 363
of the Bankruptcy Code or other sale of the Issuer through an auction process,
then upon the closing of such Competing Transaction, the Issuer shall pay the
Investors an aggregate fee of $10 million (the “Termination Fee”), and
the Issuer shall also pay to the Investors any Transaction Expenses certified
by the Investors to be due and payable hereunder that have not been paid
theretofore and such Termination Fee and Transaction Expenses shall, subject to
approval of the Bankruptcy Court, constitute 

 

29

 

administrative
expenses of the Issuer.  The provision
for the payment of the Termination Fee and Transaction Expenses is an integral
part of the transactions contemplated by this Agreement, and without this
provision the Investors would not have entered into this Agreement.  The Issuer agrees to use its best efforts to
obtain approval from the Bankruptcy Court of the Termination Fee.  If the Bankruptcy Court fails or refuses to
enter an order approving the terms of this Section 12(c), including but
not limited to, the Termination Fee, such failure or refusal shall not affect
the Investors’ commitment hereunder or the other provisions of this
Agreement.  If the Bankruptcy Court
approves the Termination Fee, the Termination Fee shall be the sole and
exclusive remedy of the Investors for any breach of this Agreement in
circumstances in which the Termination Fee is required to be paid other than
any breach of the provisions of Section 13 hereof. Payment of all amounts
due under this Section 12(c), shall be made by wire transfer of
immediately available funds to the account specified by the Investors at least
24 hours in advance to the Issuer.  If
payment of the Termination Fee and Transaction Expenses due under this Section 12(c) are
not paid, and the Investors are forced to commence any action or proceeding to
collect same which results in a final judgment against the Issuer no longer
subject to appeal, the Issuer shall pay to the Investors all costs and
expenses, including attorneys’ fees, in connection with collecting or enforcing
their rights and remedies hereunder.

 

(d)           The Issuer may terminate
this Agreement in order to enter into a Superior Transaction (as defined below)
or an agreement to support a Superior Transaction.

 

(e)           Upon termination under this Section 12,
the covenants and agreements made by the parties herein under Sections 9,
11, 12(c) and 13 through 20 will survive indefinitely in accordance with
their terms.

 

13.           Competing
Transactions.  From the
date of this Agreement to the Effective Date or earlier termination of this
Agreement, the Issuer shall not make a public announcement that it intends to
support or supports, enter into an agreement to support, or file any pleading
or document with the Bankruptcy Court evidencing its intention to support, or
otherwise knowingly support, any transaction inconsistent with this Agreement
or the Plan, shall not file any plan that is not the Plan and shall not agree
to, consent to, knowingly provide any support to, solicit, participate in the
formulation of, or vote for any transaction or plan of reorganization other
than the Plan (a “Competing Transaction”).   Notwithstanding anything to the contrary
herein, or in the Plan or any other agreement among the Issuer and the
Investors, at any time prior to the date on which the Plan is confirmed by the
Bankruptcy Court, if the Issuer has received a bona fide written proposal for a
Competing Transaction that the special committee of the board of directors of
the Issuer or, if the special committee is no longer in existence, the board of
directors of the Issuer determines in good faith is or could reasonably be
expected to lead to a Superior Transaction and that the failure of the Board to
pursue such Competing Transaction could reasonably be expected to result in a
breach of the Board of Directors’ fiduciary duties under applicable law, then
the Issuer may (a) furnish non-public information to, and engage in
discussions and negotiations with, the person making such

 

30

 

proposal
and its representatives with respect to the Competing Transaction, and (b) terminate
this Agreement pursuant to Section 12(d) in order to enter
into a Superior Transaction or an agreement to support a Superior
Transaction.  For purposes of this
Agreement, a “Superior Transaction” shall be a Competing Transaction
that the special committee of the board of directors of the Issuer or, if the
special committee is no longer in existence, the board of directors of the
Issuer determines in good faith (x) would be in the best interests of the
Issuer and its creditor constituencies and equity holders as a whole,
including, but not limited to the Investors, and (y) would reasonably be
expected to provide a superior recovery (but, with respect to any creditor
constituent, not in excess of its claim) to each class of creditor
constituencies and equity holders.  At
all times prior to, on, or after the date of the commencement of the Chapter 11
Case, the Issuer shall be obligated to promptly deliver to the advisors for the
Investors all written communications delivered to or received by the Issuer or
its advisors making or materially modifying any proposals with respect to any
Competing Transaction, including, without limitation, copies of all expressions
of interest, term sheets, letters of interest, offers, proposed agreements or
otherwise, and shall periodically update (not less than once every week) the
advisors for the Investors concerning such matters.

 

14.           Notices.  All notices and other communications in
connection with this Agreement will be in writing and will be deemed given (and
will be deemed to have been duly given upon receipt) if delivered personally,
sent via electronic facsimile (with confirmation), mailed by registered or
certified mail (return receipt requested) or delivered by an express courier
(with confirmation) to the parties at the following addresses (or at such other
address for a party as will be specified by like notice):

 

(a)           If to Investors or any of
the Investors, at their respective addresses set forth on the signature pages hereto,
with copies to:

 

	
  Rothschild Inc.

  	
   

  
	
  1251 Avenue of the
  Americas, 51st Floor

  	
   

  
	
  New York, NY 10020

  	
   

  
	
  Facsimile: (212) 403-5454

  	
   

  
	
  Attn: Steven Ledoux

  	
   

  
	
   

  	
   

  
	
  and

  	
   

  
	
   

  	
   

  
	
  Milbank, Tweed,
  Hadley & McCloy LLP

  	
   

  
	
  601 South Figueroa Street,
  30th Floor

  	
   

  
	
  Los Angeles, CA 90017

  	
   

  
	
  Facsimile: (213) 892-4277

  	
   

  
	
  Attn:
  Paul S. Aronzon, Esq.

  	
   

  
	
   

  	
   

  
	
  (b)           If to the
  Issuer, to:

  	
   

  
	
   

  	
   

  
	
  Accuride Corporation

  	
   

  
	
  77140 Office Circle

  	
   

  
	
  Evansville, IN 47715

  	
   

  
	
  Attention: Steve
  Martin, Esq.

  	
   

  
	
  Facsimile: (812) 962-5470

  	
   

  

 

31

 

	
  with a copy to:

  	
   

  
	
   

  	
   

  
	
  Latham & Watkins
  LLP

  	
   

  
	
  Sears Tower, Suite 5800

  	
   

  
	
  233 South Wacker Drive

  	
   

  
	
  Chicago, IL 60606

  
	
  Attn:

  	
  David S. Heller, Esq.

  
	
   

  	
  Bradley Faris, Esq.

  
	
  Facsimile: (312) 993-9767

  
			

 

15.           Assignment; Third Party
Beneficiaries.  Neither
this Agreement nor any of the rights, interests or obligations under this Agreement
will be assigned by any of the parties (whether by operation of law or
otherwise) without the prior written consent of the other party.  Notwithstanding the previous sentence, this
Agreement, or any Investor’s obligations hereunder, may be assigned, delegated
or transferred, in whole or in part, by an Investor to (i) any entity or
person over which such Investor or any of its Affiliates exercises investment
authority, including, without limitation, with respect to voting and
dispositive rights or (ii) any person or entity reasonably acceptable to
the Issuer to which such Investor transfers the Old Notes held by it; provided,
that any such assignee assumes the obligations of the Investor hereunder and
agrees in writing to be bound by the terms of this Agreement in the same manner
as the Investor.  Notwithstanding the
foregoing or any other provisions herein, no such assignment will relieve the
assigning Investor of its obligations hereunder if such assignee fails to
perform such obligations.  Except as
provided in Section 8 with respect to the Indemnified Parties, this
Agreement (including the documents and instruments referred to in this
Agreement) is not intended to and does not confer upon any person other than
the parties hereto any rights or remedies under this Agreement.  Notwithstanding the foregoing or any other
provisions herein to the contrary, an Investor may not assign any of its rights
or obligations under this Agreement, to the extent such assignment would affect
the securities laws exemptions applicable to this transaction.

 

16.           Prior Negotiations; Entire
Agreement.  This
Agreement (including the exhibits hereto and the documents and instruments
referred to in this Agreement) constitutes the entire agreement of the parties
and supersedes all prior agreements, arrangements or understandings, whether
written or oral, between the parties with respect to the subject matter of this
Agreement, except that the parties hereto acknowledge that any confidentiality
agreements heretofore executed among the parties will continue in full force
and effect.

 

17.           Governing Law;
Jurisdiction.  This
Agreement shall be governed by, and construed in accordance with, the laws of
the State of New York, regardless of the laws that might otherwise govern under
applicable principles of conflict of laws of the State of New York.  By its execution and delivery of this
Agreement, each of the parties hereto hereby irrevocably and unconditionally
agrees for itself that any legal action, suit, or proceeding against it with respect
to any matter under or arising out of or in connection

 

32

 

with
this Agreement or for recognition or enforcement of any judgment rendered in
any such action, suit, or proceeding, shall be brought in a federal court of
competent jurisdiction in the Southern District of New York.  By execution and delivery of this Agreement,
each of the parties hereto hereby irrevocably accepts and submits to the
nonexclusive jurisdiction of such court, generally and unconditionally, with
respect to any such action, suit, or proceeding.  Notwithstanding the foregoing consent to
jurisdiction, upon the commencement of the Debtors’ chapter 11 cases, each of
the parties hereto hereby agrees that the Bankruptcy Court shall have exclusive
jurisdiction over all matters arising out of or in connection with this
Agreement.

 

18.           Counterparts.  This Agreement may be executed in any number
of counterparts, all of which will be considered one and the same agreement and
will become effective when counterparts have been signed by each of the parties
and delivered to the other party (including via facsimile or other electronic
transmission), it being understood that each party need not sign the same
counterpart.

 

19.           Waivers and Amendments.  This Agreement may be amended, modified,
superseded, cancelled, renewed or extended, and the terms and conditions of
this Agreement may be waived, only by a written instrument signed by the
parties or, in the case of a waiver, by the party waiving compliance, and
subject, to the extent required, to the approval of the Bankruptcy Court.  No delay on the part of any party in
exercising any right, power or privilege pursuant to this Agreement will
operate as a waiver thereof, nor will any waiver on the part of any party of
any right, power or privilege pursuant to this Agreement, nor will any single
or partial exercise of any right, power or privilege pursuant to this
Agreement, preclude any other or further exercise thereof or the exercise of
any other right, power or privilege pursuant to this Agreement.  The rights and remedies provided pursuant to
this Agreement are cumulative and are not exclusive of any rights or remedies
which any party otherwise may have at law or in equity.

 

20.           Headings.  The headings in this Agreement are for
reference purposes only and will not in any way affect the meaning or
interpretation of this Agreement.

 

21.           Specific Performance.  The parties acknowledge and agree that any
breach of the terms of this Agreement would give rise to irreparable harm for
which money damages would not be an adequate remedy, and, accordingly, the
parties agree that, in addition to any other remedies, each will be entitled to
enforce the terms of this Agreement by a decree of specific performance without
the necessity of proving the inadequacy of money damages as a remedy and
without the necessity of posting bond.

 

[Signature Page Follows]

 

33

 

If the foregoing is in
accordance with your understanding, please sign and return to us a counterpart
hereof, and upon the acceptance hereof by you, this letter and such acceptance
hereof will constitute a binding agreement between you, and (subject to the
approval of the Bankruptcy Court) and the Issuer.

 

	
   

  	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ACCURIDE
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Accepted as of the date
  hereof:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Facsimile:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Attn:

  	
   

  	
   

  	
   

  
						

 

34

 

EXHIBIT
A

 

TERM
SHEETS

 

A-1

 

ACCURIDE CORPORATION

NON-BINDING TERM SHEET FOR PROPOSED RESTRUCTURING

 

Reference is made to those
certain 8.5% Senior Subordinated Notes due 2015 (collectively, the “Old
Notes”) issued by Accuride Corporation, a Delaware corporation (“Accuride”,
and together with all of its direct and indirect subsidiaries, the “Company”).

 

For discussion purposes
only, the following outline of the principal terms and conditions of a
restructuring is being submitted for consideration.  The ad hoc
committee (the “Committee”) of certain entities(1) that hold or manage
the Old Notes contemplates implementing these transactions through a
pre-arranged Chapter 11 case to be filed shortly after agreement on this Term
Sheet is reached.  This Term Sheet and
all related communications shall be deemed to be settlement negotiations and
subject to Federal Rule of Evidence 408.

 

This Term
Sheet replaces and supersedes all prior agreements and understandings, both
written and oral, between the Committee and the Company and their respective
advisors with respect to the subject matter hereof.

 

(1) The ad hoc committee
consists of Blackrock Financial Management, Inc., Brigade Capital Management,
LLC, Canyon Capital Advisors LLC, Principal Global Investors LLC, Sankaty
Advisors, LLC and Tinicum Incorporated.

 

A-2

 

Treatment of Current Stakeholders

 

	
  1.

  	
   

  	
  Term Facility (the “Term Facility”) and
  Revolving Credit Facility  (the sum
  of the Canadian Revolving Facility and the US Revolving Facility, together
  the “Revolving Credit Facility”) under the Credit Agreement (as amended,
  the “Credit Agreement”), with Citicorp USA, Inc. as
  administrative agent (“Agent”)

   

  (Approximately $56.07 million and $224.60 million outstanding under
  the Revolving Credit Facility and the Term Facility, respectively as of
  September 25, 2009)

  	
   

  	
  The Credit Agreement shall be amended with terms and conditions,
  including covenants and maturities, consistent with the terms set forth in
  the “Senior Prepetition Debt Restructuring Term Sheet” (in the form approved
  by the Committee as of the date hereof).

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Last-Out Facility (the “Sun Facility”) under the Credit Agreement
  (Approximately $70 million outstanding as of September 25, 2009)

  	
   

  	
  The Sun Facility will be repaid or redeemed from the proceeds of new
  financing (see “Implementation — New Capital” below) on terms acceptable to
  the Company and the Old Noteholders.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Claims of the Holders (the “Old Noteholders”)
  of the 8.5% Senior Subordinated Notes
  due 2015 (the “Old Notes”) including all related
  guarantee claims against the Company

   

  ($275 million in principal outstanding, together with accrued
  interest of $15.3 million as of September 25, 

  	
   

  	
  The Old Noteholders shall receive their pro rata share of shares of
  common stock issued by restructured or reorganized Accuride (the “New
  Common Stock”), sufficient to result in the Old Noteholders receiving
  98.0% of the aggregate issued and outstanding New Common Stock on a fully
  diluted basis, except as provided below (the “Noteholder Equity”). The
  Noteholder Equity shall be subject to dilution by shares issued upon
  (a) the exercise of the New Warrants (as defined below), (b) the
  exercise of any options to purchase New Common Stock provided under a
  management incentive plan acceptable to the new Board 

  

 

A-3

 

	
   

  	
   

  	
  2009)

  	
   

  	
  of Directors (the “Old Equity Retention”), and (c) the
  conversion of (A) the senior convertible notes (the “New Notes”)
  described in the “Implementation — New Capital” section below and
  (B) the notes representing the paid-in-kind interest on the New Notes
  (the “PIK Notes”).

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Other Secured and Unsecured Claims

  	
   

  	
  Unimpaired.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Common Equity in Accuride (the “Old Equity”)

  	
   

  	
  The holders of the Old Equity would receive their pro rata share of:

   

  (i) 2.0% of the aggregate issued and outstanding New Common
  Stock on a fully diluted basis, after giving effect to the transactions
  contemplated herein and subject to further dilution by shares issued upon
  (a) the exercise of the New Warrants, (b) the exercise of any
  options to purchase New Common Stock provided under a management incentive
  plan, and (c) the conversion of the New Notes and the PIK Notes; and

   

  (ii) “New Warrants”, which would enable the holders
  thereof to purchase up to 15% in the aggregate of the New Common Stock on a
  fully diluted basis, subject to further dilution by shares issued upon
  (a) the exercise of any options to purchase New Common Stock provided
  under a management incentive plan and (b) the conversion of the New
  Notes and the PIK Notes. The New Warrants would expire 2 years from the date
  of their issuance. The New Warrants would be exercisable at a strike price
  that is 110% of a par recovery on the Old Notes on the effective date of a
  Restructuring. The New Warrants would have other terms and conditions that
  are customary for securities of this type.

   

  In connection with a pre-arranged Chapter 11 case, all equity
  interests in Accuride including all options, warrants and other agreements to
  acquire equity interests of any kind in Accuride (including any arising under
  or in connection with any employment agreement) will be cancelled. Provided
  that the Old Equity class votes to accept the plan of reorganization, the
  holders of Old Equity would receive New Common Stock in a percentage equal to
  the Old Equity Retention.

  

 

A-4

 

Implementation

 

	
  1.

  	
   

  	
  Restructuring
  Transaction

  	
   

  	
  The
  Company shall restructure its capital structure (the “Restructuring”)
  through a pre-arranged plan of reorganization (the “Plan”) for the
  Company in a case commenced under chapter 11 of the Bankruptcy Code (the “Chapter
  11 Case”), the material terms and conditions of which will be set forth
  in this Term Sheet and in the restructuring support agreement to be executed
  by the Committee and the Company (as amended, supplemented or otherwise
  modified, the “Restructuring Agreement”), together with the New
  Capital Term Sheet (as defined below), the restructuring support
  agreement to be executed by the Company and certain prepetition lenders to
  the Company and the Senior Prepetition Debt Restructuring Term
  Sheet.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Chapter
  11 Case

  	
   

  	
  The
  conditions to confirmation and to the effective date of the Plan shall each
  be in form and substance reasonably acceptable to the Committee and the
  Company. The Plan will provide that no condition may be waived, amended or
  deleted without the consent of the Committee, not to be unreasonably withheld
  or delayed. All documents, including without limitation, the Plan, the order
  approving a disclosure statement with respect to the Plan, the confirmation
  order, including any findings of fact and conclusions of law with respect
  thereto, and the corporate governance and related documents for the
  reorganized Company, shall each be in form and substance reasonably
  acceptable to the Committee and the Company. In addition, the business plan
  included in the disclosure statement with respect to the Plan shall be
  substantially the same business plan as that contained in the presentations
  titled “Public Lenders Presentation” and “Private Lender Supplement,” each
  dated July 2009, which were provided by the Company to the Committee,
  with any change to be reasonably acceptable to the Committee.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Public
  Markets

  	
   

  	
  The
  Company shall covenant that all shares of New Common Stock will upon issuance
  be freely tradable under applicable securities laws, validly issued, fully
  paid, and non-assessable. The Company will use its best efforts to list such
  shares of New Common Stock on the Over the Counter Bulletin Board or another
  national

  

 

A-5

 

	
   

  	
   

  	
   

  	
   

  	
  exchange
  or quotation service.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  New
  Capital

  	
   

  	
  The
  terms of the New Notes shall be set forth in a separate term sheet (the “New
  Capital Term Sheet”).

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  DIP
  Financing

  	
   

  	
  The
  Company shall obtain debtor-in-possession financing (“DIP Financing”)
  in amounts and on terms and conditions set forth in the DIP credit agreement
  (in the form approved by the Committee on the date hereof).

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Canadian
  Operations

  	
   

  	
  The
  Company shall maintain current business operations in Canada and obtain an
  appropriate waiver/forbearance under the Credit Agreement with respect to
  Accuride Canada, which shall be reasonably satisfactory to the Committee.

  

 

A-6

 

Corporate
Matters

 

	
  1.

  	
   

  	
  Restructuring Expenses

  	
   

  	
  The Company will pay (i) the
  fees and expenses of the Committee’s counsel (including local counsel) and
  financial advisor in accordance with their respective engagement letters, and
  (ii) the reasonable out-of-pocket expenses of the Committee members in
  connection with any travel to meetings with the Company. The
  obligations of the Company to pay such fees and expenses shall not be subject
  to the bankruptcy court’s approval of such fees and expenses. 

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Documentation

  	
   

  	
  The foregoing proposals
  are subject to the negotiation of definitive documents, in form and substance
  acceptable to the Company and the Committee and the members thereof.  

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Board of Directors 

  	
   

  	
  The size and composition
  of the Board of Directors will be mutually agreed upon between the Committee
  and Accuride. 

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Corporate Governance

  	
   

  	
  Certificates of
  incorporations, by-laws and all constituent documents shall be in form and
  substance acceptable to the Committee and the Company.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Releases, Exculpation Management Incentive
  Plan  

  	
   

  	
  Terms to be proposed by
  and acceptable to the Committee and the Company.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Registration Rights Agreement  

  	
   

  	
  Terms to be proposed by
  and acceptable to the Committee and the Company.

  

 

A-7

 

ACCURIDE CORPORATION

TERM SHEET
FOR NEW CAPITAL

IN
CONNECTION WITH PROPOSED RESTRUCTURING

 

Reference is made to those certain 8.5% Senior Subordinated Notes due 2015 (collectively,
the “Old Notes” and the holders thereof, the “Old Noteholders”)
issued by Accuride Corporation, a Delaware corporation (“Accuride”, and
together with all of its direct and indirect subsidiaries, the “Company”).

 

For discussion purposes only, the following outline
of the principal terms and conditions of the new capital to be raised in
connection with a proposed restructuring (the “Restructuring”) is being
submitted by the ad hoc committee (the “Committee”)
of certain entities(2) that hold or manage the Old Notes for consideration by
the Company.  This is the New Capital
Term Sheet referred to in the “Implementation — New Capital” section in the
term sheet for the Restructuring (the “Master Term Sheet”) being
considered by the Company, the Committee and certain other stakeholders and
should be read in conjunction with the Master Term Sheet. This New Capital Term
Sheet and all related communications shall be deemed to be settlement
negotiations and subject to Federal Rule of Evidence 408. All terms used
and not defined herein shall have the meanings ascribed to them in the Master
Term Sheet.

 

This New Capital Term Sheet replaces and supersedes all prior
agreements and understandings, both written and oral, between the Committee and
the Company and their respective advisors with respect to the subject matter
hereof.

 

(2)
The ad hoc committee consists of Blackrock
Financial Management, Inc., Brigade Capital Management, LLC, Canyon
Capital Advisors LLC, Principal Global Investors LLC, Sankaty Advisors, LLC and
Tinicum Incorporated.

 

A-8

 

Terms of New Capital

 

	
  Issuer:

  	
   

  	
  Accuride
  Corporation, a Delaware corporation.

  
	
   

  	
   

  	
   

  
	
  Securities to be Issued:

  	
   

  	
  Accuride
  will issue senior convertible notes in an aggregate principal amount of
  US$140.0 million (the “Initial Notes”, and together with the PIK Notes
  (as defined below), the “New Notes”), plus paid-in-kind (“PIK”)
  interest as set forth below. The New Notes shall be convertible into shares
  of New Common Stock as set forth below and have such other terms specified
  herein.

  
	
   

  	
   

  	
   

  
	
  Use of Proceeds

  	
   

  	
  The
  proceeds from the issuance and sale of the Initial Notes shall be used
  (a) to repay or redeem in full the last out term loans of Sun Capital
  and its affiliates (the “Sun Facility”); (b) to repay in full any
  debtor in possession financing facility of Accuride and its affiliated
  co-debtors and to pay, or make provision for the payment of, administrative
  claims; and (c) for general corporate purposes.

  
	
   

  	
   

  	
   

  
	
  Closing Date:

  	
   

  	
  Upon
  the consummation of a plan of reorganization for the Company in form and
  substance reasonably acceptable to the Backstop Providers and consistent with
  the Master Term Sheet (in the form approved by the Backstop Providers as of
  the date hereof), this New Capital Term Sheet and the “Senior Prepetition
  Debt Restructuring Term Sheet” (in the form approved by the Backstop
  Providers as of the date hereof) (the “Closing”), but no later than
  April 15, 2010.

  
	
   

  	
   

  	
   

  
	
  Investors:

  	
   

  	
  ·      The Initial
  Notes shall be offered to the Old Noteholders, with each of the Old
  Noteholders entitled to purchase up to its pro rata share of the Initial
  Notes (the purchasing Old Noteholders, collectively, the “New Notes
  Investors”), that is, that each Old Noteholder as of a record date to be
  determined shall be entitled to purchase up to that percentage of the Initial
  Notes equal to such Old Noteholder’s percentage holdings of the Old Notes.

   

  ·      The Backstop Providers listed below shall enter
  into agreement(s) to subscribe, in accordance with Schedule A to the
  Convertible Notes Commitment Agreement (the “Commitment Agreement”),
  for any portion of the Initial 

  

 

A-9

 

	
   

  	
   

  	
  Notes not subscribed for by the Old Noteholders
  (the “Unsubscribed New Notes”). The Backstop Providers shall be
  entitled to receive backstop commitment fees as set forth in, and in
  accordance with the terms of, the Commitment Agreement.

   

  ·      The Backstop Providers are Blackrock Financial
  Management, Inc., Brigade Capital Management, LLC, Sankaty Advisors, LLC
  and Tinicum Lantern II L.L.C. Each Backstop Provider will be committed to
  acquire the percentage of any Unsubscribed New Notes that is specified on
  Schedule A to the Commitment Agreement.

  
	
   

  	
   

  	
   

  
	
  Transfer:

  	
   

  	
  Subject
  to applicable securities laws, the New Notes Investors and their respective
  permitted transferees shall have the right to transfer freely the New Notes
  or the New Common Stock received upon conversion of the New Notes (the “Conversion
  Shares”) at any time.

  
	
   

  	
   

  	
   

  
	
  Interest Rate:

  	
   

  	
  Interest
  on the New Notes will be payable semi-annually, with the first six interest
  payments being payable in PIK and the remaining being payable in cash, at a
  rate of 7.5% per annum. To the extent interest on the New Notes is paid in
  PIK, the additional notes so paid (the “PIK Notes”) shall be
  convertible into New Common Stock at the same Conversion Price (as defined
  below) as the New Notes.

  
	
   

  	
   

  	
   

  
	
  Maturity Date:

  	
   

  	
  The
  New Notes will mature ten (10) years from the date of Closing.

  
	
   

  	
   

  	
   

  
	
  Ranking:

  	
   

  	
  The
  New Notes will be senior unsecured debt obligations of Accuride. The New
  Notes will rank pari passu in right of payment
  to any existing senior unsecured debt of Accuride or any Guarantor (as
  defined below), and senior in right of payment to any current or future
  subordinated debt of Accuride or of any Guarantor.

  
	
   

  	
   

  	
   

  
	
  Subsidiary Guarantees:

  	
   

  	
  All
  of the direct and indirect subsidiaries of Accuride (the “Guarantors”)
  will guarantee Accuride’s payment obligations with respect to the New Notes.

  
	
   

  	
   

  	
   

  
	
  Conversion/Dividend 

  	
   

  	
  The
  New Notes shall be convertible at any time at the option of 

  

 

A-10

 

	
  Participation:

  	
   

  	
  the
  holder thereof, in part or in whole, into New Common Stock at a conversion
  price (the “Conversion Price”) that results in the Initial Notes, if
  converted in whole immediately upon issuance and without giving effect to the
  accrual of any PIK Interest, being 
  convertible into the equivalent of 60.0% of all the outstanding New
  Common Stock (on a fully diluted basis). The Conversion Price shall be
  subject to adjustment from time to time as described in the section entitled
  “Anti-Dilution Protection” below. In addition to the interest otherwise
  specified herein, there shall be payable additional interest on the New Notes
  in an aggregate amount equal to the amount of any dividends or distributions
  paid on the New Common Stock prior to conversion (adjusted to reflect the
  amount of New Common Stock into which the New Notes are then convertible),
  other than in-kind dividends and distributions, which shall be distributed to
  the holders of the New Notes on an as-converted basis.

  
	
   

  	
   

  	
   

  
	
  Voting Rights:

  	
   

  	
  The
  holders of the New Notes shall be entitled to exercise all the voting rights
  associated with the New Common Stock on an as-converted basis.

  
	
   

  	
   

  	
   

  
	
  Anti-Dilution Protection:

  	
   

  	
  The
  New Notes shall have customary anti-dilution provisions with respect to stock
  splits, combinations, issuance of shares or convertible instruments below the
  greater of market price (or, if the New Common Stock is not actively traded,
  fair market value) and the Conversion Price on a standard weighted average
  basis and other standard anti-dilution provisions, as well as a provision
  that protects the New Notes from dilution by issuance of the PIK Notes.
  Notwithstanding the foregoing, anti-dilution provisions of the New Notes
  shall not apply to the issuance of options and other stock incentives under a
  management incentive plan approved by Accuride’s post-emergence Board of
  Directors.

  
	
   

  	
   

  	
   

  
	
  Prepayment or Redemption:

  	
   

  	
  The
  New Notes shall not be prepayable at any time or redeemable prior to maturity
  without the holders’ consent.

  
	
   

  	
   

  	
   

  
	
  Put Right on Change of Control:

  	
   

  	
  Customary
  change of control provisions to be agreed upon between the Company and the
  New Notes Investors.

  
	
   

  	
   

  	
   

  
	
  Make-Whole:

  	
   

  	
  The definitive documents will provide for a make-whole upon the
  occurrence of certain events to be determined.

  

 

A-11

 

	
  Affirmative/Reporting Covenants:

  	
   

  	
  Customary
  affirmative and reporting covenants to be agreed upon.

  
	
   

  	
   

  	
   

  
	
  Negative Covenants:

  	
   

  	
  So
  long as any New Notes are outstanding, Accuride shall not, and shall not
  permit any of its subsidiaries to, without the approval of the holders of
  more than 50% of the New Notes:

   

  1.             Purchase or
  redeem any capital stock of Accuride, or pay any dividends or distributions
  with respect to any such capital stock;

   

  2.             Modify any
  rights, preferences or privileges in respect of the New Common Stock;

   

  3.             Issue any
  capital stock that has a liquidation or other preference senior to the New
  Common Stock;

   

  4.             Modify
  Accuride’s charter or bylaws in any way that is adverse to holders of the New
  Notes or the New Common Stock, including by the provision of any preferred or
  otherwise senior class of capital stock to the New Common Stock;

   

  5.             Permit or
  cause the voluntary bankruptcy or winding up or dissolution of Accuride;

   

  6.             Incur any
  debt (other than the debt under the Credit Agreements outstanding as of the
  date of Closing), subject to exceptions to be agreed upon between the Company
  and the New Notes Investors; or

   

  7.             Take any
  action that breaches other customary negative covenants to be agreed upon.

  
	
   

  	
   

  	
   

  
	
  Financial Covenants:

  	
   

  	
  The
  indenture relating to the New Notes shall not contain any financial
  covenants.

  
	
   

  	
   

  	
   

  
	
  Events of Default:

  	
   

  	
  The
  indenture relating to the New Notes shall contain events of default customary
  for securities of this type.

  
	
   

  	
   

  	
   

  
	
  Registration Rights and Listing

   

  	
   

  	
  Terms
  of registration rights agreement to be proposed by and agreed upon by the
  Committee and the Company.

   

  The
  Company agrees to use its best efforts to cause the New Notes and the
  Conversion Shares to be listed on the Over the Counter Bulletin Board or
  another national exchange or quotation service.

  

 

A-12

 

	
  Chapter 11 Case

  	
   

  	
  The
  transactions contemplated in this term sheet, the Master Term Sheet and the
  Senior Prepetition Debt Restructuring Term Sheet will be implemented through
  a pre-arranged Chapter 11 bankruptcy plan. The terms of such Chapter 11
  bankruptcy plan and the final order approving such plan (including, if
  applicable, any declaration of the effectiveness) shall be in form and
  substance reasonably satisfactory to the New Notes Investors.

   

  The
  business plan included in the disclosure statement with respect to the Plan
  shall be substantially the same business plan as that contained in the
  presentations titled “Public Lenders Presentation” and “Private Lender
  Supplement,” each dated July 2009, which were provided by the Company to
  the Committee, with any change to be reasonably acceptable to the Committee.

  
	
   

  	
   

  	
   

  
	
  Restructuring Expenses

  	
   

  	
  The Company will pay (i) the
  fees and expenses of the Committee’s counsel (including local counsel) and
  financial advisor in accordance with their respective engagement letters, and
  (ii) the reasonable out-of-pocket expenses of the Committee members in
  connection with any travel to meetings with the Company. The
  obligations of the Company to pay such fees and expenses shall not be subject
  to the bankruptcy court’s approval of such fees and expenses. 

  
	
   

  	
   

  	
   

  
	
  Choice of Law

  	
   

  	
  New
  York

  

 

A-13

 

Summary of
Terms and Conditions for the Restructured

Prepetition Senior Secured Credit Facilities (collectively, the “Restructured
Facilities”)

 

Capitalized
terms used herein without definition shall have the meaning given to them in
the Fourth Amended and Restated Credit Agreement, dated as of January 31,
2005 (as amended, restated, supplemented and/or otherwise modified through the
date hereof, the “Existing Credit Agreement”), among Accuride
Corporation, a Delaware Corporation, Accuride Canada Inc., a corporation
organized under the laws of the Province of Ontario, Canada, Deutsche Bank
Trust Company Americas as the administrative agent, and the other Lenders party
thereto from time to time.

 

This term sheet is proffered in
furtherance of settlement discussions, and is entitled to the protections of
Federal Rule of Evidence 408 and any other applicable statutes or
doctrines protecting the use or disclosure of confidential information and
information exchanged in the context of settlement discussions.  This Term Sheet is for discussion purposes
only and shall not be construed as a commitment of any kind to restructure the
existing Prepetition Senior Secured Credit Facilities.  Any such restructuring shall, in any event,
be subject to final documentation in form and substance satisfactory to the
existing Lenders, which such documentation may contain terms that vary from
those set forth below, and shall be conditioned upon a Chapter 11 plan of
reorganization for the Debtors in form and substance satisfactory to the
existing Lenders.

 

The proposed terms and
conditions for the Restructured Facilities assume the following in connection
with the restructuring of Accuride’s capital structure:

 

·      $140.0 million of New
Capital will be provided on a committed basis by the Backstop Providers (as
provided for in the New Capital Term Sheet), to repay the post-petition
financing facility in full, to provide liquidity to finance working capital and
general corporate purposes and to repay in cash at par in full the principal
balance of the Sun Last Out Term Advances (other than accrued paid-in-kind
interest thereon, which will be added to and form part of the Restructured
Prepetition Senior Secured Credit Facility).

 

·      New Capital will be provided
on the effective date of the Chapter 11 plan of reorganization of the Borrower
and its domestic U.S. Subsidiaries, incorporating the provisions of (i) this term sheet, (ii) the separate
Non-Binding Term Sheet for Proposed Restructuring (attached hereto and
outlining the proposed terms of the restructuring to be completed pursuant to
such plan of reorganization), (iii) the Noteholder
New Capital Term Sheet (attached hereto and outlining the proposed terms of the
New Capital to be provided by the New Notes Investors and the Backstop
Providers as described therein), (iv) the Lender
Restructuring Support Agreement among Accuride Corporation and certain
Prepetition Lenders and (v) the Noteholder
Restructuring Support Agreement among Accuride Corporation and certain
Noteholders; each of (ii), (iii), (iv) and (v) in the form agreed by
the Steering Committee (the “Plan”).

 

·      New Capital will be in the
form of unsecured convertible notes, with interest to be paid-in-kind for the
first three years and paid in cash thereafter to maturity, and will otherwise
comply with the terms included in the New Capital Term Sheet (the “New Notes”).

 

A-14

 

·      $5.0 million (assuming net
sale proceeds of at least $20.0 million) of proceeds from the sale of Fabco may
be reinvested by the U.S. Borrower.

 

·      Existing First Out
Obligations (which include the term facility of approximately $224.6 million as
of 9/25/09, and the revolving credit facilities of approximately $56.07 million
as of 9/25/09 (comprised of the Canadian Revolving Credit Facility and the U.S.
Revolving Credit Facility, and excluding issued LC’s of approximately $18.2
million)) will continue to be classified as indebtedness on the terms set out
in this Term Sheet, with no reduction to principal or change in currency.

 

·      The defaulting lender Lehman
revolving commitment of $24 million shall not be funded and shall be cancelled.

 

	
  Borrower:

  	
   

  	
  Accuride
  Corporation (the “U.S. Borrower”),
  Accuride Canada Inc. (the “Canadian Borrower” and together with the
  U.S. Borrower, the “Borrowers”).

  
	
   

  	
   

  	
   

  
	
  Guarantors/Guarantees:

  	
   

  	
  Identical
  to those under the Existing Credit Agreement and subject to the same
  guarantee limitations and restrictions required under U.S. and local law.

  
	
   

  	
   

  	
   

  
	
  Lead Arranger:

  	
   

  	
  Deutsche
  Bank Securities, Inc(3).

  
	
   

  	
   

  	
   

  
	
  Administrative Agent:

  	
   

  	
  Deutsche
  Bank Trust Company Americas (“DBTCA”)(4).

  
	
   

  	
   

  	
   

  
	
  Steering Committee:

  	
   

  	
  DBTCA,
  GE Capital, Eaton Vance and Fifth Third Bank.

  
	
   

  	
   

  	
   

  
	
  Security:

  	
   

  	
  Maintenance
  of existing first priority security interests in the Loan Parties’ assets and
  properties secured by the Collateral Documents and provision of new first
  priority security interests in any of the Loan Parties’ assets and properties
  not presently secured by the Collateral Documents, subject to customary
  exceptions to avoid adverse tax consequences.

  
	
   

  	
   

  	
   

  
	
  Availability:

  	
   

  	
  No
  availability under Revolving Facility. No Swingline Facility. Provision of
  new Letter of Credit facility (to replace the existing issued letters of
  credit) to be discussed.

  
	
   

  	
   

  	
   

  
	
  Closing Date:

  	
   

  	
  The
  effective date of the Plan (the “Closing Date”).

  
	
   

  	
   

  	
   

  
	
  Maturity:

  	
   

  	
  Termination
  Date of both the Prepetition Revolving Facility (U.S. and Canadian) and the
  Prepetition Term Facility (First-Out and Last-Out) shall be extended to
  June 30, 2013.

  
	
   

  	
   

  	
   

  
	
  Interest Rate:

  	
   

  	
  Revolving
  Loans/First Out Term Loans: LIBOR +675 bps; LIBOR
  floor of 300 bps; cash pay.  

   

  Prepetition
  Last Out Term Loans: To be refinanced in full with a portion
  of the proceeds of the New Capital in accordance with the terms of the New
  Capital Term Sheet.

  

 

(3)       For a fee to be agreed.

(4)       For a fee to be agreed.

 

A-15

 

	
  Amortization/Excess Cash Flow Sweep:

  	
   

  	
  Same
  as Existing Credit Agreement, subject to modifications, including 75% of ECF
  (less amount of cash required to remain in compliance with Minimum Liquidity
  covenant) to be swept annually, commencing with fiscal year 2011, first sweep
  date at beginning of Q1, 2012.

  
	
   

  	
   

  	
   

  
	
  Mandatory Prepayments:

  	
   

  	
  Each Borrower shall make
  mandatory prepayments corresponding with those set forth under the Existing
  Credit Agreement, with appropriate modifications as may be determined by the
  Steering Committee, including:

   

  ·      Asset Sales: 100%, subject to a $5.0 million per
  year reinvestment carve-out;

   

  ·      Issuance of Debt: 100% for any issuance, subject
  to a (i) $20,000,000 basket carve-out for the issuance of (A) additional
  senior convertible notes on terms that are identical to the New Notes or (B) other
  subordinated debt; provided that (x) any such additional issuance or
  other subordinated debt shall be unsecured, fully subordinated to the
  Existing Credit Facility (on terms satisfactory to the Lenders) and have a
  later maturity than the Existing Credit Facility and (y) interest on any
  such additional issuance or other subordinated debt shall be paid-in-kind
  following the issuance thereof until the New Notes become cash pay, and
  thereafter may also become cash pay; and (ii) $5,000,000 general basket
  carve-out for new debt issuances (the “Subordinated Debt Basket”);
  provided that the obligation to apply the proceeds of any issuance of debt
  shall not apply to the proceeds of the New Notes or to paid-in-kind interest
  on the New Notes; and

   

  ·      Issuance of Equity: Existing leverage-based
  thresholds to be eliminated, 100% for any issuance.

  
	
   

  	
   

  	
   

  
	
  Limitation on Indebtedness:

  	
   

  	
  Based on the
  exceptions/baskets set forth in the Existing Credit Agreement, with
  appropriate modifications acceptable to the Steering Committee including:

   

  ·      Prohibition on junior/subordinated indebtedness,
  subject to carve-out for Subordinated Debt Basket;

   

  ·      Prohibition on indebtedness in connection with any
  merger or acquisition that is a permitted investment;

   

  ·      Purchase money debt and Capital Lease basket of
  $5,000,000; and

   

  ·      Up to $5,000,000 general basket carve-out for new
  debt 

  

 

A-16

 

	
   

  	
   

  	
  issuances.

  
	
   

  	
   

  	
   

  
	
  Limitation on Liens:

  	
   

  	
  Based on the
  exceptions/baskets as set forth in the Existing Credit Agreement, with
  appropriate modifications acceptable to the Steering Committee including:

   

  ·      $5,000,000 general basket.

  
	
   

  	
   

  	
   

  
	
  Financial Covenants:

  	
   

  	
  From and after the Closing
  Date:

   

  (i)            Minimum Liquidity
  (calculated without giving effect to the Commitments of any Defaulting
  Lender) of $25 million to be tested monthly on the last business day of each
  month.

   

  (ii)           Minimum EBITDA (LTM) to be tested quarterly at
  covenant levels with headroom to the base case plan presented to the Lenders
  in July 2009, as set forth below. 
  Covenant holiday for four fiscal quarters after the quarter in which
  the effective date of the Plan occurs. 
  Assuming effective date occurs in April 2010, covenant holiday
  would apply from fiscal quarter ending September 30, 2010 through fiscal
  quarter ending June 30, 2011.(5)  From and after the covenant
  holiday through and including fiscal quarter ending December 31, 2011,
  covenant levels to be as follows (to the extent not covered by the covenant
  holiday):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Q2 2011

  	
   

  	
  $67.2 million

  	
   

  
	
   

  	
   

  	
   

  	
  Q3 2011

  	
   

  	
  $76.3 million

  	
   

  
	
   

  	
   

  	
   

  	
  Q4 2011

  	
   

  	
  $83.8 million

  	
   

  
	
   

  	
   

  	
   

  	
  2012

  	
   

  	
  $120.6 million

  	
   

  
	
   

  	
   

  	
   

  	
  2013

  	
   

  	
  $143.9 million

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii)          Equity cures (in form of new common stock or
  subordinated indebtedness up to basket limit referred to under Mandatory Prepayments)
  of up to $15 million in aggregate to be permitted to cure any EBITDA covenant
  shortfalls.  Limitations and conditions
  for exercise of equity cure to be agreed. 
  

  
	
   

  	
   

  	
   

  
	
  Canadian Operations

  	
   

  	
  The
  U.S. Borrower shall maintain current business operations in Canada and obtain
  an appropriate waiver/forbearance under the Existing Credit Agreement with
  respect to Accuride Canada Inc., which shall be reasonably satisfactory to
  the Instructing Group.

  

 

(5)       If exit of Chapter 11 occurs
either earlier or later than April 2010, covenant holiday period to be
adjusted accordingly.

 

A-17

 

	
  Other provisions

  	
   

  	
  Additional
  modifications may be required relating to, among others, (i) events of
  default, (ii) limitations on asset sales, JVs and mergers and
  acquisitions, (iii) limitations on investments, (iv) limitations on
  capital expenditure, (v) limitations on restricted payments,
  (vi) reporting requirements and (vii) voting and to reflect position
  agreed on application of Fabco sale proceeds and terms and conditions of New
  Capital. Releases and exculpations to be reasonably acceptable to the Debtors
  and the Steering Committee.

  

 

The foregoing is intended to summarize certain terms of the
Restructured Facilities.  It is not intended
to be a definitive list of all of the requirements of the Lenders in connection
with the Restructured Facilities.

 

A-18

 

EXHIBIT B

 

INTERIM DIP ORDER AND DIP AGREEMENT

 

 

IN THE
UNITED STATES BANKRUPTCY COURT

FOR
THE DISTRICT OF DELAWARE

 

	
  In re:  

  	
  Chapter 11  

  
	
   

  	
   

  
	
  ACCURIDE CORPORATION,

  	
  Case
  No. 09-           (      )

  
	
  et al.,(1)

  	
   

  
	
   

  	
  Joint Administration
  Pending

  
	
   

  	
  Debtors.

  	
   

  
			

 

INTERIM
ORDER PURSUANT TO SECTIONS 361, 362, 363 AND 364

OF THE BANKRUPTCY CODE AND RULE 4001 OF THE FEDERAL 

RULES OF BANKRUPTCY PROCEDURE (A) AUTHORIZING THE 

DEBTORS TO (I) USE CASH COLLATERAL OF THE PREPETITION SECURED

PARTIES, (II) OBTAIN POST-PETITION FINANCING AND (III) PROVIDE

ADEQUATE PROTECTION TO THE PREPETITION SECURED PARTIES, 

AND (B) PROVIDING NOTICE AND SCHEDULING FINAL HEARING

 

Upon the motion, dated October 8,
2009 (the “Motion”), of Accuride Corporation (“AccuCorp”) and the
other above-captioned debtors and debtors-in-possession (collectively, the “Debtors”)
in the above-captioned chapter 11 cases (the “Cases”), for the entry of
an order (A) authorizing the Debtors to (I) use cash collateral,
pursuant to Section 363 of title 11 of the United States Code (as amended,
the “Bankruptcy Code”), (II) obtain postpetition financing pursuant
to Sections 361, 362 and 364 of the Bankruptcy Code and (III) provide
adequate protection to the Prepetition Secured Parties (defined below) pursuant
to Sections 361, 362 and 363 of the

 

(1)                                  The Debtors in these cases, along with
the last four digits of each Debtor’s federal tax identification number, are:
Accuride Corporation, a Delaware corporation (9077); Accuride Cuyahoga
Falls, Inc., a Delaware corporation (9556); Accuride Distributing, LLC, a
Delaware limited liability company (3124); Accuride EMI, LLC, a Delaware
limited liability company (N/A); Accuride Erie L.P., a Delaware limited
partnership (4862); Accuride Henderson Limited Liability Company, a Delaware
limited liability company (8596); AKW General Partner L.L.C., a Delaware
limited liability company (4861); AOT Inc., a Delaware corporation (3088);
Bostrom Holdings, Inc., a Delaware corporation (9282); Bostrom
Seating, Inc., a Delaware corporation (7179); Bostrom Specialty
Seating, Inc., a Delaware corporation (4182); Brillion Iron
Works, Inc., a Delaware corporation (6942); Erie Land Holding, Inc.,
a Delaware corporation (8018); Fabco Automotive Corporation, a Delaware
corporation (9802); Gunite Corporation, a Delaware corporation (9803); Imperial
Group Holding Corp. -1, a Delaware corporation (4007); Imperial Group Holding
Corp. -2, a Delaware corporation (4009); Imperial Group, L.P., a Delaware
limited partnership (4012); JAII Management Company, a Delaware corporation
(N/A); Transportation Technologies Industries, Inc., a Delaware
corporation (2791); and Truck Components Inc., a Delaware corporation
(5407).  The mailing address for Accuride
Corporation is 7140 Office Circle, Evansville, Indiana 47715.

 

B-1

 

Bankruptcy Code, and (B) scheduling
interim and final hearings pursuant to Rule 4001(b) and (c) of
the Federal Rules of Bankruptcy Procedure (as amended, the “Bankruptcy
Rules”), the Debtors sought, among other things, the following relief:

 

(i)                                     the Court’s
authorization, pursuant to Sections 363 and 364(c)(1), (2), (3) and
(d)(1) of the Bankruptcy Code, for AccuCorp, as borrower (the “DIP
Borrower”), and the other Debtors as guarantors (together with the DIP
Borrower, the “DIP Loan Parties”), to enter into a senior secured
superpriority post-petition credit facility (the “DIP Facility”)
provided by Deutsche Bank Trust Company Americas (“DBTCA”), as
administrative agent and as collateral agent (in such capacities, respectively,
the “DIP Administrative Agent” and “DIP Collateral Agent,” and
collectively, the “DIP Agent”), GE Capital, as syndication agent,
certain of the Prepetition Secured Lenders (defined below), as First Out
Lenders (in such capacities, the “First Out DIP Lenders”), and certain
of the Prepetition Noteholders (defined below), as Last Out Term Lenders (in
such capacities, the “Last Out DIP Lenders,” and collectively with the
First Out DIP Lenders, the “DIP Lenders”), pursuant to the Senior
Secured Superpriority Debtor-in-Possession ABL Credit Agreement attached hereto
as Exhibit A (the “DIP Credit Agreement,”(2) and together with
this order (the “Interim Order”), the Final Order (defined below), and
all other Loan Documents, including the DIP Budget (defined below),
collectively, the “DIP Loan Documents”)(3), and to obtain extensions of
credit thereunder

 

(2)                                  Terms used but not otherwise
defined herein shall have the meanings given to them in the DIP Credit
Agreement.

 

(3)                                  As set forth more fully
below and in the DIP Credit Agreement, the Last Out DIP Lenders are DIP Lenders
in respect of $25,000,000 of Advances under the DIP Facility on a first in/last
out and substantially silent basis. 
Among other things, as set forth in Section 2.20 of the DIP Credit
Agreement, the Last Out Obligations (as defined in the DIP Credit Agreement;
such obligations are referred to herein as the “Last Out DIP Obligations”)
are subordinated in right of payment to the payment in full of the First Out
Obligations (as defined in the DIP Credit Agreement; such obligations are
referred to herein as the “First Out DIP Obligations”).

 

B-2

 

on a senior secured and superpriority basis,
(a) during the period (the “Interim Period”) from the date hereof
through and including the earlier to occur of (x) the date of entry of the
Final Order by this Court and (y) the Termination Date, in an aggregate
principal amount not to exceed $25,000,000, and (b) upon entry of the
Final Order and thereafter until the Termination Date, in an aggregate
principal amount not to exceed $50,000,000 (or such lesser maximum amount as
set forth in the DIP Credit Agreement), in each case at any time outstanding
(all Advances, Letters of Credit and other financial accommodations and
extensions of credit under the DIP Credit Agreement and the DIP Facility, the “DIP
Extensions of Credit”);

 

(ii)                                  the Court’s
authorization to use DIP Extensions of Credit in accordance with the cash flow
forecast prepared by the Debtors and annexed hereto as Exhibit B (as
updated from time to time pursuant to the DIP Loan Documents and subject to the
prior approval of the DIP Agent, the “DIP Budget”), and as otherwise
provided herein and in the other DIP Loan Documents;

 

(iii)                               the Court’s
authorization to grant to the DIP Agent for the benefit of the DIP Lenders and
the other secured parties under the DIP Loan Documents (collectively, the “DIP
Secured Parties”), in respect of the DIP Obligations (defined below), a
superpriority administrative claim pursuant to Section 364(c)(1) of
the Bankruptcy Code and first priority priming liens on and security interests
in substantially all assets and property of the Debtors (now owned or hereafter
acquired) pursuant to Sections 364(c)(2), (c)(3) and (d)(1) of the
Bankruptcy Code, in each case as and to the extent set forth more fully below
and subject to the Carve-Out (defined below);

 

B-3

 

(iv)                              the Court’s
authorization to use “cash collateral” as such term is defined in Section 363
of the Bankruptcy Code (the “Cash Collateral”) in which the Prepetition
Secured Parties have an interest;

 

(v)                                 the Court’s
authorization to grant, as of the Petition Date (defined below), the Adequate
Protection Superpriority Claim (defined below) and Adequate Protection Liens
(defined below), to the extent of and as compensation for any Diminution in
Value (defined below), and the payment of fees and expenses to the Prepetition
Agent (defined below) for the benefit of the Prepetition Secured Parties, in
each case, as set forth more fully below and subject to the Carve-Out;

 

(vi)                              modification by
the Court of the automatic stay imposed by Section 362 of the Bankruptcy Code
to the extent necessary to implement and effectuate the terms and provisions of
the DIP Facility, this Interim Order and the other DIP Loan Documents;

 

(vii)                           the scheduling
by the Court of a final hearing (the “Final Hearing”) to consider entry
of an order (the “Final Order”) granting the relief requested in the
Motion on a final basis and approving the form of notice with respect to the
Final Hearing and the transactions contemplated by the Motion; and

 

(viii)                        the Court’s
waiving of any applicable stay (including under Rule 6004 of the Federal Rules
of Bankruptcy Procedure) and providing for the immediate effectiveness of this
Interim Order.

 

The Court having considered
the Motion, the terms of the DIP Facility and the DIP Loan Documents, the
Declaration of James Woodward, sworn to on October 8, 2009 in Support of the
First Day Motions and Pursuant to Local Bankruptcy Rule 1007-2, and the
evidence submitted at the hearing held before this Court on October 9, 2009, to
consider entry of this Interim Order

 

B-4

 

(the “Interim Hearing”);
and in accordance with Bankruptcy Rules 2002, 4001(b), (c), and (d), and
9014 and the local rules of the Court, due and proper notice of the Motion
and the Interim Hearing having been given; and it appearing that approval of
the interim relief requested in the Motion is necessary to avoid immediate and
irreparable harm to the Debtors pending the Final Hearing and is otherwise fair
and reasonable and in the best interests of the Debtors, their creditors and
their estates, and essential for the continued operation of the Debtors’
businesses; and, subject to the terms hereof, the Court having determined that
there is adequate protection of the Prepetition Liens (defined below); and all
objections, if any, to the entry of this Interim Order having been withdrawn,
resolved or overruled by the Court; and after due deliberation and
consideration, and for good and sufficient cause appearing therefor:

 

BASED
UPON THE RECORD ESTABLISHED AT THE INTERIM HEARING, THE COURT HEREBY MAKES THE
FOLLOWING FINDINGS OF FACT AND CONCLUSIONS OF LAW:

 

A.                                   Petition Date.  On
October 8, 2009 (the “Petition Date”), the Debtors filed voluntary
petitions under Chapter 11 of the Bankruptcy Code with the United States
Bankruptcy Court for the District of Delaware (the “Court”).  The Debtors have continued in the management
and operation of their businesses and properties as debtors-in-possession
pursuant to Sections 1107(a) and 1108 of the Bankruptcy Code.  No trustee or examiner has been appointed in
the Cases.

 

B.                                     Jurisdiction and Venue.  The Court has
jurisdiction over these proceedings, pursuant to 28 U.S.C. § 1334.  Consideration of the Motion constitutes a
core proceeding under 28 U.S.C. § 157(b)(2). 
Venue for the Cases and the proceedings on the Motion is proper in this
district pursuant to 28 U.S.C. §§ 1408 and 1409.

 

B-5

 

C.                                     Committee Formation.  No official
committee of unsecured creditors has been appointed in the Cases (together with
any other statutory committee, a “Committee”).

 

D.                                    Notice. 
Notice of the Interim Hearing and the relief requested in the Motion has
been provided by the Debtors, by telecopy, email, overnight courier and/or hand
delivery, to (a) the United States Trustee for the District of Delaware,
(b) all parties asserting a security interest in the assets of the Debtors
to the extent reasonably known to the Debtors, (c) the Office of the
United States Attorney General for the District of Delaware; (d) the
Internal Revenue Service, and (e) those creditors holding the 30 largest
unsecured claims against the Debtors’ estates (the “Notice Parties”).  Under the circumstances, such notice of the
Interim Hearing and the relief requested in the Motion constitutes due,
sufficient and appropriate notice and complies with Section 102(1) of
the Bankruptcy Code, Bankruptcy Rules 2002 and 4001(b) and
(c) and the local rules of the Court.

 

E.                                      Prepetition Secured Credit
Facility; Prepetition Indenture.

 

(i)                                     AccuCorp and Accuride Canada Inc. (“AccuCanada”), as borrowers
(respectively, the “Prepetition U.S. Borrower” and the “Prepetition
Canadian Borrower” and, together, the “Prepetition Borrowers”), the
lenders party thereto from time to time (the “Prepetition Secured Lenders”),
DBTCA, as successor administrative agent (in such capacity, and in its capacity
as successor collateral agent under the Prepetition Collateral Documents
(defined below), the “Prepetition Agent”), Citigroup Global Markets Inc.
and Lehman Brothers Inc., as joint lead arrangers and joint book-runners,
Lehman Commercial Paper Inc., as syndication agent, and UBS Securities LLC, as
documentation agent, are parties to that certain Fourth Amended and Restated
Credit Agreement, dated as of January 31, 2005 (as amended by
(i) that certain First Amendment, dated as of November 28, 2007, (ii) that
certain Second

 

B-6

 

Amendment, dated as of January 28, 2009,
(iii) that certain Third Amendment, dated as of August 14, 2009, and
(iv) that certain Fourth Amendment and Canadian Forbearance Agreement, dated
as of October 8, 2009, and as otherwise amended, restated, supplemented
and/or modified through the Petition Date, the “Prepetition Credit Agreement”
and, together with the other Loan Documents (defined in the Prepetition Credit
Agreement), the “Prepetition Loan Documents”).

 

(ii)                                  The Prepetition Credit Agreement provides for (a) a term loan
facility (the “Prepetition Term Facility”), (b) a U.S. revolving
credit facility, which includes a letter of credit facility and a swingline
facility (the “Prepetition U.S. Revolving Facility”), and (c) a
Canadian revolving credit facility (the “Prepetition Canadian Revolving
Facility” and, together with the Prepetition Term Facility and the
Prepetition U.S. Revolving Facility, the “Prepetition Secured Credit Facility”).  Article VI of the Prepetition Credit
Agreement provides for, among other things, an unconditional guaranty by the
Prepetition U.S. Borrower of the obligations of the Prepetition Canadian
Borrower under the Prepetition Loan Documents. 
Each of the Debtors is a party to the Prepetition Guarantee and
Collateral Agreement (defined below), which provides for, among other things,
an unconditional joint and several guaranty by such Debtor of all of the
Prepetition Obligations (defined below).

 

(iii)                               The Debtors are parties, as applicable, to the following documents and
agreements (collectively, the “Prepetition Collateral Documents”), which
provide for pledges and grants by the Debtors of liens on and security
interests in their assets and property (to the extent described therein) as
security for the repayment of the Prepetition Obligations:  (a) that certain Amended and Restated
Guarantee and Collateral Agreement, dated as of January 31, 2005 (as
amended, restated, supplemented and/or otherwise modified through the Petition
Date, the “Prepetition Guarantee and Collateral Agreement”), made by the
Debtors and certain other

 

B-7

 

Grantors (defined therein) in favor of the
Prepetition Agent, (b) that certain Pledge of Shares Agreement, executed
as of June 13, 2003, by and between the Prepetition U.S. Borrower and the
Prepetition Agent (as amended by that certain Confirmation and Amendment
Agreement, dated January 31, 2005, and as otherwise amended, restated,
supplemented or modified through the Petition Date), and (c) the Mortgages
and the other Collateral Documents (each defined in the Prepetition Credit
Agreement).

 

F.                                      Stipulations as to
Prepetition Secured Credit Facility.  Without limiting the rights of a Committee or
any other party in interest as and to the extent set forth in Paragraph 8
hereof, the Debtors permanently, immediately, and irrevocably acknowledge,
represent, stipulate and agree:

 

(i)                                     Prepetition Obligations.  
As of the Petition Date, the Debtors were indebted and liable to the
Prepetition Agent, the Prepetition Secured Lenders and the other Secured
Parties (defined in the Prepetition Credit Agreement) (the “Prepetition
Secured Parties”) under the Prepetition Loan Documents without objection,
defense, counterclaim or offset of any kind, (a) in the aggregate
principal amount of not less than (I) $300,249,610.50 with respect to the
Prepetition Term Facility (comprised of the First Out Term Advances (defined in
the Prepetition Credit Agreement) in the aggregate principal amount of
$224,559,153.15, the Last Out Term Advances (defined in the Prepetition Credit
Agreement) in the aggregate principal amount of $70,065,846, and the New Term
Advances (defined in the Prepetition Credit Agreement) in the aggregate
principal amount of $5,624,611.35), (II) $34,069,786.79 with respect to
the Prepetition U.S. Revolving Facility (comprised of U.S. Revolving Credit
Advances (defined in the Prepetition Credit Agreement)), (III) $22,000,000
with respect to the Prepetition Canadian Revolving Facility, and (IV) approximately
$2,183,831 with respect to the Debtors’

 

B-8

 

obligations in respect of
a Bank Hedging Agreement (defined in the Prepetition Credit Agreement) with
Deutsche Bank AG New York Branch, as counterparty, which terminated prior to
the Petition Date, plus, in each case, accrued (both before and after the
Petition Date) and unpaid interest thereon, (b) for $18,232,199 aggregate
face amount of undrawn Letters of Credit (defined in the Prepetition Credit
Agreement), and (c) for fees, expenses and all other Obligations (defined
in the Prepetition Credit Agreement), including any attorneys’, accountants’,
consultants’, appraisers’ and financial and other advisors’ fees that are
chargeable or reimbursable under the Prepetition Loan Documents (clauses (a) through
(c), collectively, the “Prepetition Obligations”).  As of the Petition Date, the value of the
Prepetition Collateral (defined below) exceeds the amount of the Prepetition
Obligations.

 

(ii)                                              Enforceability, etc. of
Prepetition Obligations.  The
Prepetition Loan Documents and the Prepetition Obligations are (a) legal,
valid, binding, and enforceable against each Debtor and (b) not subject to
any contest, attack, objection, recoupment, defense, counterclaim, offset,
subordination, re-characterization, avoidance or other claim, cause of action
or other challenge of any kind or nature under the Bankruptcy Code, under
applicable non-bankruptcy law or otherwise.

 

(iii)                                           Enforceability, etc. of
Prepetition Liens.  The liens and
security interests (collectively, the “Prepetition Liens”) granted by
the Debtors under the Prepetition Collateral Documents to or for the benefit of
the Prepetition Secured Parties as security for the Prepetition Obligations
encumber substantially all of the Debtors’ assets and property (all such assets
and property, as the same existed on or at any time prior to the Petition Date,
together with all cash and non-cash proceeds thereof, collectively, the “Prepetition
Collateral”) .  The Prepetition Liens
have been properly recorded and perfected under state law, and are legal,
valid, enforceable, 

 

B-9

 

non-avoidable, and not
subject to contest, avoidance, attack, offset, re-characterization,
subordination or other challenge of any kind or nature under the Bankruptcy
Code, under applicable non-bankruptcy law or otherwise.  As of the Petition Date, and without giving
effect to this Interim Order, the Debtors are not aware of any liens or
security interests having priority over the Prepetition Liens, except the
Senior Third Party Liens (defined below). 
The Prepetition Liens were granted to or for the benefit of the Prepetition
Secured Parties for fair consideration and reasonably equivalent value, and
were granted contemporaneously with the making of the loans and/or commitments
and other financial accommodations secured thereby.

 

(iv)                                          Indemnity. 
The Prepetition Secured Parties and the DIP Secured Parties have acted
in good faith, and without negligence or violation of public policy or law, in
respect of all actions taken by them in connection with or related in any way
to negotiating, implementing, documenting or obtaining requisite approvals of
the DIP Facility and the use of Cash Collateral, including in respect of the
granting of the DIP Liens (defined below) and the Adequate Protection Liens,
any challenges or objections to the DIP Facility or the use of Cash Collateral,
the Prepetition Lender Restructuring Support Lockup Agreement, the other
Restructuring Support Documents (defined in the Prepetition Lender
Restructuring Support Lockup Agreement), the Noteholder Restructuring Support
Lockup Agreement, and all documents related to and all transactions contemplated
by the foregoing.  Accordingly, the
Prepetition Secured Parties and the DIP Secured Parties shall be and hereby are
indemnified and held harmless by the Debtors in respect of any claim or
liability incurred in respect thereof or in any way related thereto.  No exception or defense in contract, law or
equity exists as to any obligation set forth, as the case may be, in this
paragraph F, in the Prepetition Loan Documents or in the DIP Loan Documents, to
indemnify and/or hold harmless the Prepetition Agent, the DIP 

 

B-10

 

Agent, or any other
Prepetition Secured Party or DIP Secured Party, as the case may be, and any
such defenses are hereby waived.

 

(v)                                             No Control. 
None of the DIP Secured Parties or the Prepetition Secured Parties are
control persons or insiders of the Debtors or any of their affiliates by virtue
of any of the actions taken with respect to, in connection with, related to, or
arising from the DIP Facility, the Prepetition Secured Credit Facility, the DIP
Loan Documents and/or the Prepetition Loan Documents.

 

(vi)                                          No Claims, Causes of
Action.  As of the date hereof, there exist no claims
or causes of action against any of the Prepetition Secured Parties or the DIP
Secured Parties with respect to, in connection with, related to, or arising
from the Prepetition Loan Documents, the DIP Loan Documents, the Prepetition
Secured Credit Facility and/or the DIP Facility that may be asserted by the
Debtors or any other person or entity.

 

(vii)                                       Release. The Debtors forever and irrevocably
release, discharge, and acquit all former, current and future DIP Secured
Parties and Prepetition Secured Parties, and each of their respective former,
current and future officers, employees, directors, agents, representatives,
owners, members, partners, financial and other advisors and consultants, legal
advisors, shareholders, managers, consultants, accountants, attorneys,
affiliates, and predecessors and successors in interest (collectively, the “Releasees”)
of and from any and all claims, demands, liabilities, responsibilities,
disputes, remedies, causes of action, indebtedness and obligations, rights,
assertions, allegations, actions, suits, controversies, proceedings, losses,
damages, injuries, attorneys’ fees, costs, expenses, or judgments of every
type, whether known, unknown, asserted, unasserted, suspected, unsuspected,
accrued, unaccrued, fixed, contingent, pending or threatened including, without
limitation, all legal and equitable theories of recovery,

 

B-11

 

arising under common law,
statute or regulation or by contract, of every nature and description, arising
out of, in connection with, or relating to the DIP Facility, the DIP Loan
Documents, the Prepetition Secured Credit Facility, the Prepetition Loan
Documents, the Prepetition Lender Restructuring Support Lockup Agreement, the
Noteholder Restructuring Support Lockup Agreement and/or the transactions
contemplated hereunder or thereunder including, without limitation, (x) any
so-called “lender liability” or equitable subordination claims or defenses, (y) any
and all claims and causes of action arising under the Bankruptcy Code, and (z) any
and all claims and causes of action with respect to the validity, priority,
perfection or avoidability of the liens or claims of the Prepetition Secured
Parties and/or the DIP Secured Parities.

 

G.                                     Immediate Need for Postpetition Financing and Use
of Cash Collateral.  The Debtors
have requested immediate entry of this Interim Order pursuant to Bankruptcy
Rule 4001(b)(2) and (c)(2). 
Good cause has been shown for entry of this Interim Order.  An immediate need exists for the Debtors to
obtain funds and liquidity in order to continue operations and to administer
and preserve the value of their estates. 
The ability of the Debtors to finance their operations, to preserve and
maintain the value of the Debtors’ assets and to maximize the return for all
creditors requires the availability of the DIP Facility and the use of Cash
Collateral.  In the absence of the
availability of such funds and liquidity in accordance with the terms hereof,
the continued operation of the Debtors’ businesses would not be possible, and serious and irreparable harm to
the Debtors and their estates and creditors would occur.  Further, the possibility for a successful
reorganization would be jeopardized in the absence of the availability of funds
in accordance with the terms of this Interim Order.  Thus, the ability of the Debtors to preserve
and maintain the value of their assets and maximize the return for creditors
requires the availability of working capital from the DIP Facility and the use
of Cash Collateral.

 

B-12

 

H.            No Credit Available on More
Favorable Terms.  The Debtors have been unable to obtain on
more favorable terms and conditions than those provided in this Interim Order (a) adequate
unsecured credit allowable under Bankruptcy Code Section 503(b)(1) as
an administrative expense, (b) credit for money borrowed with priority
over any or all administrative expenses of the kind specified in Sections 503(b) or
507(b) of the Bankruptcy Code, (c) credit for money borrowed secured
by a lien on property of the estate that is not otherwise subject to a lien, or
(d) credit for money borrowed secured by a junior lien on property of the
estate which is subject to a lien.  The
Debtors are unable to obtain credit for borrowed money without granting the DIP
Liens and the DIP Superpriority Claim (defined below) to (or for the benefit
of) the DIP Secured Parties.

 

I.              Use
of Cash Collateral and Proceeds of the DIP Facility, DIP Collateral and
Prepetition Collateral.  All Cash Collateral, all proceeds of the
Prepetition Collateral and the DIP Collateral (defined below), including
proceeds realized from a sale or disposition thereof, or from payment thereon,  and all proceeds of the DIP Facility (net of any amounts
used to pay fees, costs and expenses payable under this Interim Order or the
Final Order) shall be used and/or applied in accordance with the terms and
conditions of this Interim Order and the other DIP Loan Documents, for the
types of expenditures in the DIP Budget and for no other purpose; provided,
that up to $50,000 in the aggregate of the proceeds of the DIP Facility, DIP
Collateral, Prepetition Collateral or Cash Collateral, may be used by any
Committee solely to investigate the matters covered by the Claims Stipulations
(defined below). Amounts advanced by the DIP Borrower for the general corporate
purposes of any Subsidiary in accordance with the DIP Credit Agreement shall be
and are hereby subordinated to the Prepetition Obligations and the DIP

 

B-13

 

Obligations and shall be
pledged as collateral security on a first priority basis to secure the DIP
Facility.

 

J.             Adequate Protection for Secured
Parties.  The
Prepetition Agent has negotiated in good faith regarding the Debtors’ use of
the Prepetition Collateral (including the Cash Collateral) to fund the
administration of the Debtors’ estates and continued operation of their
businesses, in accordance with the terms hereof.  The Prepetition Secured Parties have agreed
to permit the Debtors to use the Prepetition Collateral, including the Cash
Collateral, in accordance with the terms hereof during the Interim Period
subject to the terms and conditions set forth herein, including the protections
afforded parties acting in “good faith” under Section 363(m) of the
Bankruptcy Code.  The Prepetition Secured
Parties are entitled to the adequate protection as and to the extent set forth
herein pursuant to Sections 361, 362 and 363 of the Bankruptcy Code.  Based on the Motion and on the record
presented to the Court at the Interim Hearing, the terms of the proposed
adequate protection arrangements and of the use of the Cash Collateral are fair
and reasonable, reflect the Debtors’ prudent exercise of business judgment and
constitute reasonably equivalent value and fair consideration for the
Prepetition Agent’s consent thereto; provided, that nothing in this
Interim Order or the other DIP Loan Documents shall prejudice, limit or
otherwise impair the rights of the Prepetition Agent (for the benefit of the
Prepetition Secured Parties) to seek new, different or additional adequate
protection in the event of a material change in circumstances after the date
hereof.

 

K.            Section 552. Subject to
the entry of a Final Order, in light of, as applicable, the subordination of
the Prepetition Liens and the Adequate Protection Liens to the DIP Liens and
the Carve-Out, and the granting of the DIP Liens on the Prepetition Collateral,
the Prepetition

 

B-14

 

Secured Parties are each entitled to all of the rights and benefits of Section 552(b) of
the Bankruptcy Code, and the “equities of the case” exception shall not apply.

 

L.             Extension of Financing.  The DIP Secured Parties have indicated a
willingness to provide financing to the Debtors in accordance with the terms
hereof.  The DIP Secured Parties are good
faith financiers.  The intercreditor,
payment priority, consents, waivers and similar provisions contained in the DIP
Credit Agreement as between the First Out DIP Lenders and the Last Out DIP
Lenders were negotiated in good faith and at arm’s length among commercially
sophisticated parties, and such arrangements are an integral element of the DIP
Facility and of the basis of the DIP Secured Parties’ willingness to enter into
the DIP Facility and to make DIP Extensions of Credit, and of the Prepetition
Secured Parties’ consent to the priming of the Prepetition Liens and the use of
the Prepetition Collateral and the Cash Collateral.  The Prepetition Secured Parties have
consented to the priming of the Prepetition Liens and the use of the
Prepetition Collateral and the Cash Collateral, solely in respect of the DIP
Facility provided by the DIP Secured Parties, and not in respect of any other
postpetition financing or cash collateral facility.  Nothing in this Interim Order or in the DIP
Loan Documents shall be deemed or construed as a consent by the Prepetition
Secured Parties to any such postpetition financing or cash collateral facility,
or as an admission or evidence that any adequate protection provided herein
would be sufficient adequate protection in respect thereof.  The DIP Secured Parties’ claims,
superpriority claims, security interests and liens and other protections
granted pursuant to this Interim Order (and the Final Order) and the DIP
Facility (including the DIP Liens and DIP Superiority Claim) will not be
affected by any subsequent reversal, modification, vacatur or amendment of this
Interim Order or the Final Order or any other order, as provided in Section 364(e) of
the Bankruptcy Code.

 

B-15

 

M.           Business
Judgment and Good Faith Pursuant to Section 364(e).

 

(i)            The terms and conditions of the DIP Facility, and
the fees paid and to be paid thereunder, are fair, reasonable, and the best
available under the circumstances, reflect the Debtors’ exercise of prudent
business judgment consistent with their fiduciary duties, and are supported by
reasonably equivalent value and consideration;

 

(ii)           the DIP Facility was negotiated in good faith and at
arm’s length among the Debtors and the DIP Secured Parties; and

 

(iii)          the use of the proceeds to be extended under the DIP
Facility will be so extended in good faith, and for valid business purposes and
uses, as a consequence of which the DIP Secured Parties are entitled to the
protection and benefits of Section 364(e) of the Bankruptcy Code.

 

N.            Relief Essential; Best Interest.  The relief requested in the Motion (and
provided in this Interim Order) is necessary, essential and appropriate for the
continued operation of the Debtors’ businesses and the management and
preservation of the Debtors’ assets and property.  It is in the best interest of the Debtors’
estates that the Debtors be allowed to enter into the DIP Facility, incur the
DIP Obligations and use the Cash Collateral as contemplated herein.

 

NOW, THEREFORE, on the Motion of the Debtors and the record
before this Court with respect to the Motion, including the record made during
the Interim Hearing, and with the consent of the Debtors, the Prepetition Secured
Parties and the DIP Secured Parties, and good and sufficient cause appearing
therefor,

 

IT IS ORDERED that:

 

1.             Motion
Granted.  The Motion is granted in accordance with the
terms and conditions set forth in this Interim Order.  Any objections to the Motion with respect to
entry of

 

B-16

 

this Interim Order to the extent not withdrawn,
waived or otherwise resolved, and all reservation of rights included therein,
are hereby denied and overruled.

 

2.             DIP Facility.

 

(a)           DIP Obligations, etc.  The Debtors are expressly and immediately
authorized and empowered to enter into the DIP Facility and to incur and to
perform the DIP Obligations in accordance with and subject to this Interim
Order (and, upon its entry, a Final Order) and the other DIP Loan Documents, to
execute and/or deliver all DIP Loan Documents and all other instruments,
certificates, agreements and documents, and to take all actions, which may be
reasonably required or otherwise necessary for the performance by the Debtors
under the DIP Facility, including the creation and perfection of the DIP Liens
described and provided for herein.  The
Debtors are hereby authorized and directed to pay all principal, interest, fees
and expenses, indemnities and other amounts described herein and in the other
DIP Loan Documents as such shall accrue and become due hereunder or thereunder,
including, without limitation, the reasonable fees and expenses of the
attorneys and financial and other advisors and consultants of the DIP Agent and
the DIP Lenders as and to the extent provided for herein and in the other DIP
Loan Documents (collectively, all loans, advances, extensions of credit,
financial accommodations, fees, expenses and other liabilities and obligations
(including indemnities and similar obligations) in respect of DIP Extensions of
Credit, the DIP Facility and the DIP Loan Documents, the “DIP Obligations”).  The DIP Obligations shall not otherwise be
subject to further approval of this Court. 
The DIP Loan Documents and all DIP Obligations shall represent,
constitute and evidence, as the case may be, valid and binding obligations of
the Debtors, enforceable against the Debtors, their estates and any successors
thereto in accordance with their terms. 
The term of the DIP Facility shall commence on the date of entry of this

 

B-17

 

Interim Order and end on the Termination Date,
subject to the terms and conditions set forth herein and in the other DIP Loan
Documents, including the protections afforded a party acting in good faith
under Section 364(e) of the Bankruptcy Code.

 

(b)           Authorization to Borrow, etc.  In order to enable them to
continue to operate their businesses, subject to the terms and conditions of
this Interim Order and the other DIP Loan Documents, the DIP Borrower is hereby
authorized under the DIP Facility to borrow during the Interim Period (and the
other Debtors are authorized to guarantee repayment of) up to an aggregate
principal amount of $25,000,000.

 

(c)           Conditions Precedent.  The DIP Lenders shall have
no obligation to make any DIP Extension of Credit or any other financial
accommodation hereunder or under the other DIP Loan Documents (and the Debtors
shall not make any request therefor) unless all conditions precedent to making
DIP Extensions of Credit under the DIP Loan Documents have been satisfied or
waived in accordance with the terms of the DIP Loan Documents.

 

(d)           DIP Collateral.  As used herein, “DIP Collateral” shall
mean, all now owned or hereafter acquired assets and property, whether real or
personal, of the Debtors including, without limitation, all Prepetition
Collateral, all assets and property pledged under the DIP Loan Documents, and
all cash, any investment of such cash, inventory, accounts receivable,
including intercompany accounts (and all rights associated therewith), other
rights to payment whether arising before or after the Petition Date, contracts,
contract rights, chattel paper, goods, investment property, inventory, deposit
accounts (including the cash collection, “lockbox” and “concentration” accounts
described in paragraph 14 or otherwise under the DIP Loan Documents), “core
concentration accounts,” “cash collateral accounts”, and in each case all
amounts on deposit therein from time to time, equity interests, securities
accounts, securities

 

B-18

 

entitlements, securities, commercial tort claims,
books, records, plants, equipment, general intangibles, documents, instruments,
interests in leases and leaseholds, interests in real property, fixtures,
payment intangibles, tax or other refunds, insurance proceeds, letters of
credit, letter of credit rights, supporting obligations, machinery and
equipment, patents, copyrights, trademarks, tradenames, other intellectual
property, all licenses therefor, and all proceeds, rents, profits, products and
substitutions, if any, of any of the foregoing, and including, upon entry of
the Final Order, all of the Debtors’ claims and causes of action under Sections
502(d), 544, 545, 547, 548, 549, 550 and 553 of the Bankruptcy Code, and any
other avoidance or similar action under the Bankruptcy Code or similar state
law, and the proceeds thereof, whether received by judgment, settlement or
otherwise (the “Avoidance Action Collateral”).(4)

 

(e)           DIP Liens.  Effective immediately upon the entry of this
Interim Order, and subject to the Carve-Out, as set forth more fully in this
Interim Order, the DIP Agent for the ratable benefit of the DIP Secured Parties
is hereby granted the following security interests and liens, which shall
immediately be valid, binding, perfected, continuing, enforceable and
non-avoidable (all liens and security interests granted to the DIP Agent for
the benefit of the DIP Secured Parties pursuant to this Interim Order, any
Final Order and the other DIP Loan Documents, the “DIP Liens”):

 

(I)       pursuant to Section 364(c)(2) of
the Bankruptcy Code, valid, enforceable, perfected and non-avoidable first
priority liens on and security interests in all DIP Collateral that was not
encumbered by valid, enforceable, perfected and non-avoidable liens as of the
Petition Date;

 

(4)           With respect to any liens on the capital stock of the Debtors’ directly
owned foreign subsidiaries to secure the DIP Obligations, such liens shall be
limited to pledges that would not result in deemed dividends to the Debtors
pursuant to Section 956 of the Internal Revenue Code.

 

B-19

 

(II)      pursuant to Section 364(c)(3) of
the Bankruptcy Code, valid, enforceable, perfected and non-avoidable liens on
and security interests in (x) all DIP Collateral which is unencumbered by
the Prepetition Liens but on which a third party, i.e., not the
Prepetition Secured Parties (a “Third Party Lienholder”), had a
pre-existing lien on the Petition Date and (y) all DIP Collateral
encumbered by the Prepetition Liens on which a Third Party Lienholder had a
pre-existing lien on the Petition Date that was senior to the Prepetition
Liens, in each case junior only to any such liens and security interests of
Third Party Lienholders, but solely to the extent that such liens and security
interests were in each case valid, enforceable, perfected and non-avoidable as
of the Petition Date, and were permitted by the terms of the Prepetition Loan
Documents (the “Senior Third Party Liens”); and

 

(III)    pursuant to Section 364(d) of
the Bankruptcy Code, valid, enforceable, perfected and non-avoidable liens on
and security interests in all Prepetition Collateral, which liens and security
interests shall be senior to and prime the Prepetition Liens and the liens of
all Third Party Lienholders which are pari passu with
or junior and subject to the Prepetition Liens.

 

(f)            Other Provisions Relating to the DIP Liens.  The DIP Liens shall secure
all of the DIP Obligations.  The DIP
Liens shall not, without the consent of the DIP Agent, be made subject to, or pari passu with, any other lien or security interest, other
than to the extent expressly provided herein and to the Carve-Out, by any court
order heretofore or hereafter

 

B-20

 

entered in the Cases, and shall be valid and
enforceable against any trustee appointed in the Cases, upon the conversion of
any of the Cases to a case under Chapter 7 of the Bankruptcy Code or in any
other proceedings related to any of the foregoing (any “Successor Cases”),
and/or upon the dismissal of any of the Cases. 
It is understood and agreed, and hereby ordered, that, notwithstanding
the immediately preceding sentence or anything else to the contrary set forth
in this Interim Order, in any other DIP Loan Document, or in any other order of
this Court entered in the Cases, any amounts advanced or expended by the
Prepetition Secured Parties or the DIP Secured Parties (other than by the Last
Out DIP Lenders or the Last Out Lenders (as defined in the Prepetition Credit
Agreement; such lenders are referred to herein as, the “Last Out Prepetition
Lenders”)), in their sole and absolute discretion and without requiring the
consent or approval of any other party, after the occurrence and during the
continuation of an Event of Default, directly or indirectly, to protect,
preserve, maintain, market, sell or liquidate the Prepetition Collateral or DIP
Collateral, including to fund the Debtors’ operations during a Bankruptcy Code Section 363
sale process, and any reasonable professional or advisory fees and expenses of
White & Case LLP, Stikeman Elliot LLP, Houlihan, Lokey, Howard & Zukin, any local or foreign
counsel and other advisors, appraisers and/or liquidators retained by the
Prepetition Agent or the DIP Agent, shall be added to the First Out DIP
Obligations for all purposes hereunder and under the other DIP Loan Documents.  The DIP Liens and the Adequate Protection
Liens shall not be subject to Sections 510, 549, 550 or 551 of the Bankruptcy
Code or the “equities of the case” exception of Section 552 of the
Bankruptcy Code or, to the extent provided in the Final Order, Section 506(c) of
the Bankruptcy Code.

 

(g)           Superpriority
Administrative Claim Status.  The DIP Obligations shall, pursuant to Section 364(c)(1) of
the Bankruptcy Code, at all times constitute an allowed

 

B-21

 

superpriority claim (the “DIP
Superpriority Claim”)  of the
DIP Agent for the benefit of the DIP Secured Parties,  and be payable from and have recourse to all DIP
Collateral.  The DIP Superpriority Claim
shall be subject and subordinate only to the Carve-Out; provided that
the Last Out DIP Lenders shall not receive or retain any payments, property,
distribution or other amounts in respect of the DIP Superpriority Claim or DIP
Obligations unless and until the First Out DIP Obligations are paid and
satisfied in full and in cash (including cash collateralization of all Letters
of Credit in accordance with the DIP Loan Documents).  Other than as expressly provided herein,
including in paragraph 11 and with respect to the Carve-Out, no costs or
expenses of administration, including, without limitation, professional fees
allowed and payable under Bankruptcy Code Sections 328, 330 and 331, or
otherwise, that have been or may be incurred in these proceedings or in any
Successor Cases, and no priority claims are, or will be, senior to, prior to or
pari passu with the DIP Liens, the DIP
Superpriority Claim or any of the DIP Obligations, or with any other claims of
the DIP Secured Parties arising hereunder or under the other DIP Loan
Documents, or otherwise in connection with the DIP Facility.

 

3.             Authorization
and Approval to Use Cash Collateral and Proceeds of DIP Facility. Subject to the terms and conditions of this Interim
Order and the other DIP Loan Documents, and to the adequate protection granted
to or for the benefit of the Prepetition Secured Parties as hereinafter set
forth, each Debtor is authorized during the Interim Period (and not beyond) to (a) use
the Cash Collateral and (b) request and use proceeds of the DIP Extensions
of Credit, in each case for the types of expenditures set forth in the DIP
Budget.  The DIP Budget may only be
amended, supplemented, modified, restated, replaced, or extended in accordance
with the DIP Loan Documents and the prior written consent of the DIP Agent.  The Last Out DIP Lenders shall have the
consultation rights provided for in the DIP Credit

 

B-22

 

Agreement. 
Notwithstanding anything herein to the contrary, subject only to the
Debtors’ rights under paragraphs 17(b) and 17(c), the Debtors’ right to
request or use proceeds of DIP Extensions of Credit or to use Cash Collateral
shall terminate on the Termination Date, including upon written notice being
provided by the DIP Agent to the Debtors that an Event of Default has occurred
and is continuing.  Nothing in this
Interim Order shall authorize the disposition of any assets of the Debtors or
their estates outside the ordinary course of business or other proceeds
resulting therefrom, except as permitted herein (subject to any required Court
approval).

 

4.             Adequate
Protection for Prepetition Secured Parties.  As adequate protection for the
interests of the Prepetition Secured Parties in the Prepetition Collateral
(including Cash Collateral), the Prepetition Agent for the benefit of the
Prepetition Secured Parties shall receive adequate protection as follows:

 

(a)           Adequate Protection Liens.  To the extent of, and in an aggregate amount
equal to, the diminution in value of such interests, from and after the
Petition Date, calculated in accordance with Section 506(a) of the
Bankruptcy Code, resulting from, among other things, the use, sale or lease by
the Debtors of the Prepetition Collateral (including the use of Cash
Collateral), the granting of the DIP Liens, the subordination of the
Prepetition Liens thereto and to the Carve-Out, or the imposition or
enforcement of the automatic stay of Section 362(a) (collectively, “Diminution
in Value”), the Prepetition Secured Parties shall have pursuant to Sections
361, 363(e) and 364(d) of the Bankruptcy Code, replacement security
interests in and liens upon (the “Adequate Protection Liens”) all of the
DIP Collateral, which shall be (i) junior and subject to the DIP Liens and
Senior Third Party Liens and (ii) senior and prior to all other liens
thereon.  The Adequate Protection Liens
shall in all cases be subject to the Carve-Out.

 

B-23

 

(b)           Adequate Protection Superpriority Claims.  To the extent of the aggregate
Diminution in Value, the Prepetition Secured Parties shall have, subject to the
payment of the Carve-Out, an allowed superpriority administrative expense claim
(the “Adequate Protection Superpriority Claim”)  as provided for in Section 507(b) of
the Bankruptcy Code, immediately junior and subject to the DIP Superpriority
Claim, and payable from and having recourse to all DIP Collateral; provided,
that the Prepetition Secured Parties shall not receive or retain any payments,
property, distribution or other amounts in respect of the Adequate Protection
Superpriority Claim unless and until the DIP Obligations and (without
duplication) the DIP Superpriority Claim have indefeasibly been paid in full in
cash; and provided  further that 
the Last Out Prepetition Lenders shall not receive or retain any
payments, property or other amounts in respect of the Adequate Protection
Superpriority Claim until the First Out Loan Obligations (as defined in the
Prepetition Credit Agreement; such obligations are referred to herein as the “First
Out Prepetition Obligations”) have been indefeasibly repaid and satisfied
(including the cash collateralization of all prepetition letters of credit in
accordance with the Prepetition Loan Documents) in full in cash.

 

(c)           Adequate
Protection Payments, etc.

 

(I)       First Out Prepetition Lenders: The
Prepetition Agent (solely on behalf of the First Out Lenders (as defined in the
Prepetition Credit Agreement; such lenders are referred to herein as the “First
Out Prepetition Lenders”) shall receive from the Debtors (x) upon the
entry of this Interim Order, immediate cash payment of all accrued and unpaid
interest on the First Out Prepetition Obligations and all letter of credit fees
owing by the Debtors under the Prepetition Credit Agreement, in each

 

B-24

 

case
at the default rates provided for in the Prepetition Credit Agreement, and all
other accrued and unpaid fees and disbursements (including legal and advisory
fees and expenses) owing to the Prepetition Agent or the First Out Prepetition
Lenders under the Prepetition Credit Agreement and incurred prior to the
Petition Date, and (y) when due, all accrued but unpaid interest on the
First Out Prepetition Obligations, and all letter of credit and other fees
owing by the Debtors under the Prepetition Secured Credit Facility, at the
default rate provided for in the Prepetition Credit Agreement.

 

(II)      Last Out Prepetition Lenders:  All accrued and unpaid interest on the Last
Out Loan Obligations (as defined in the Prepetition Credit Agreement; such
obligations shall be referred to herein as “Last Out Prepetition Obligations”)
owing by the Debtors under the Prepetition Credit Agreement shall, upon the
entry of the Interim Order and, thereafter, when due, but only to the extent
permitted by applicable law, be paid in kind by capitalizing such interest in
accordance with the terms of the Prepetition Credit Agreement, effective as of
the date hereof or the applicable interest payment date, respectively.

 

(III)    Promptly upon receipt of
invoices therefor, the Prepetition Agent shall receive from the Debtors current
cash payments of all reasonable professional and advisory fees, costs and
expenses of the Prepetition Agent incurred in connection with the
administration and monitoring of the Prepetition Secured Credit Facility or the
DIP Facility, including,

 

B-25

 

without, limitation, the reasonable
documented post-petition fees and expenses of legal, financial and other
advisory, tax, investment banking and other professionals (including, without
limitation, White & Case LLP, Stikeman Elliot LLP, Houlihan, Lokey, Howard & Zukin and
any local or foreign counsel to the Prepetition Agent, and any
replacement or addition thereto that the Prepetition Agent deems reasonably
appropriate) retained by the Prepetition Agent.

 

5.             Monitoring
of Collateral.  The Prepetition Agent and the DIP Agent, and
their respective consultants and advisors, shall be given reasonable access to
the Debtors’ books, records, assets and properties for purposes of monitoring
the Debtors’ business and the value of the DIP Collateral, and shall be
permitted to conduct, at their discretion and at the Debtors’ cost and expense,
field audits, collateral examinations and inventory appraisals at reasonable
times in respect of the DIP Collateral.

 

6.             Financial
Reporting, etc.  The Debtors
shall provide the DIP Agent and the Prepetition Agent with the monthly
financial reporting given to the United States Trustee and all of the
financial reporting as required under and in all instances consistent with the
DIP Loan Documents and the Prepetition Loan Documents, including, for the avoidance
of doubt, on Wednesday of each week a report for the prior week (ending at the
close of business on Friday of such prior week) setting forth the receipts and
expenditures for such prior week (including detailed schedules supporting the
cash flow forecast in excel format), and the amount of variance, if any, on a
line-item basis from the corresponding projected amounts set forth in the DIP
Budget for such week (each a “Variance Report”).  Each weekly Variance Report shall contain
information relating to the immediately prior week, as well as cumulative
information

 

B-26

 

from and after the Petition Date, and shall be
delivered to the DIP Agent and the Prepetition Agent along with a statement of
the account balances for all of the Debtors’ bank accounts.  The Debtors shall deliver to counsel to the
ad hoc committee of certain holders (the “Prepetition Noteholders”) of
the Debtors’ prepetition 81⁄2% Senior Subordinated Notes due 2012 (the “Ad Hoc
Committee”) each Variance Report that is delivered to the DIP Agent and the
Prepetition Agent as soon as reasonably practicable.

 

7.             DIP Lien
and Adequate Protection Replacement Lien Perfection.  This Interim Order shall be
sufficient and conclusive evidence of the validity, perfection and priority of
the DIP Liens and the Adequate Protection Liens without the necessity of filing
or recording any financing statement, deed of trust, mortgage, or other
instrument or document which may otherwise be required under the law of any
jurisdiction or the taking of any other action to validate or perfect the DIP
Liens and the Adequate Protection Liens or to entitle the DIP Liens and the
Adequate Protection Liens to the priorities granted herein.  Notwithstanding the foregoing, the DIP Agent and
the Prepetition Agent may, each in their sole discretion, file such financing
statements, mortgages, security agreements, notices of liens and other similar
documents, and are hereby granted relief from the automatic stay of Section 362
of the Bankruptcy Code in order to do so, and all such financing statements,
mortgages, security agreements, notices and other agreements or documents shall
be deemed to have been filed or recorded at the time and on the date of the
commencement of the Cases.  The Debtors
shall execute and deliver to the DIP Agent and the Prepetition Agent all such
financing statements, mortgages, security agreements, notices and other
documents as the DIP Agent and the Prepetition Agent may reasonably request to
evidence, confirm, validate or perfect, or to insure the contemplated priority
of, the DIP Liens and the Adequate Protection Liens.  The DIP Agent

 

B-27

 

and the Prepetition Agent, in their discretion, may
file a photocopy of this Interim Order as a financing statement with any
recording officer designated to file financing statements or with any registry
of deeds or similar office in any jurisdiction in which any Debtor has real or
personal property and, in such event, the subject filing or recording officer
shall be authorized to file or record such copy of this Interim Order. To the extent
that the Prepetition Agent is the secured party under any account control
agreements, listed as loss payee under any of the Debtors’ insurance policies
or is the secured party under any Prepetition Collateral Document,
the DIP Agent is also deemed to be the secured party under such account
control agreements, loss payee under the Debtors’ insurance policies and the
secured party under each such Prepetition Collateral Document, and
shall have all rights and powers attendant to that position (including, without
limitation, rights of enforcement) and shall act in that capacity and
distribute any proceeds recovered or received in accordance with the terms of
this Interim Order and/or the Final Order, as applicable, and
the other DIP Loan Documents. 
The Prepetition Agent shall serve as agent for the DIP
Agent  for purposes of perfecting their respective security interests
and liens on all DIP Collateral that is of a type such that perfection of a
security interest therein may be accomplished only by possession or control by
a secured party.

 

8.             Reservation
of Certain Third Party Rights and Bar of Challenges and Claims.  Except as set forth below in the
immediately following sentence, all of the findings, agreements, terms,
provisions and conditions hereof (including the Debtors’ stipulations set forth
in paragraph F of this Interim Order (the “Claims Stipulations”)), shall
be immediately and irrevocably binding on all persons and entities.  Notwithstanding the foregoing, nothing in
this Interim Order shall prejudice any rights a Committee (or any other party
with standing to do so) may have (a) to object to or challenge any of the
Claims Stipulations, including in relation to (i)

 

B-28

 

the validity, extent, perfection or priority of the
Prepetition Liens on the Prepetition Collateral, or (ii) the validity,
allowability, priority, status or amount of the Prepetition Obligations, or (b) to
bring suit against any of the Prepetition Secured Parties in connection with or
related to the matters covered by the Claims Stipulations; provided,
that unless any Committee or such other party with standing to do so, commences
an adversary proceeding or contested matter (as applicable) raising such
objection or challenge, including without limitation any claim against the
Prepetition Secured Parties in the nature of a setoff, counterclaim or defense
to the Prepetition Obligations (including but not limited to, those under
Sections 506 (subject to the waiver of Bankruptcy Code Section 506(c) claims
as may be provided in a Final Order), 544, 547, 548, 549, 550 and/or 552 of the
Bankruptcy Code or by way of suit against any of the Prepetition Secured
Parties), by the date that is seventy-five (75) days following the earlier of (x) the
date of the appointment of a Committee and (y) the date of entry of the
Final Order (the period described in the immediately preceding clause shall be
referred to as the “Challenge Period,” and the date that is the next
calendar day after the termination of the Challenge Period shall be referred to
as the “Challenge Period Termination Date”), upon the Challenge Period
Termination Date, any and all such challenges and objections by any Committee,
any Chapter 11 or Chapter 7 trustee appointed herein or in any Successor Case,
and any other party in interest shall be deemed to be forever waived and
barred, and the Prepetition Obligations shall be deemed to be an allowed
secured claim within the meaning of Sections 502 and 506 of the Bankruptcy Code
for all purposes in connection with the Cases, and the Claims Stipulations
shall be binding on all creditors, interest holders and parties in
interest.  To the extent any such
objection or complaint is filed, the Claims Stipulations shall nonetheless
remain binding and preclusive except to the extent expressly challenged in such
objection or complaint.

 

B-29

 

9.             Carve-Out.  Subject to the terms and
conditions contained in this paragraph 9, the DIP Liens, the DIP Superpriority
Claim, the Prepetition Liens, the Adequate Protection Liens and the Adequate
Protection Superpriority Claim, which have the relative lien and payment
priorities as set forth herein, shall, in any event, in all cases be subject
and subordinate to a carve-out (the “Carve-Out”), which shall be
comprised of the following:  (i) all
fees required to be paid to the Clerk of the Court and to the Office of the
United States Trustee pursuant to 28 U.S.C. § 1930(a), (ii) subject in all
cases to the limitations set forth in the DIP Loan Documents and to Court
approval, the sum of (A) and (B), where (A) is the aggregate amount
of the Debtors’ professional fees and disbursements which have been incurred,
accrued, or invoiced (but remain unpaid) prior to the date on which the DIP
Agent provides written notice that an Event of Default has occurred and has
triggered the Carve-Out (a “Carve Out Trigger Notice”) for any
professional retained by an order of the Court under Section 327 or 328 of
the Bankruptcy Code, and (B) is the aggregate amount of fees and
disbursements of the Debtors’ retained professionals accrued after delivery of
the Carve Out Trigger Notice, up to $5,500,000, and (iii) subject in all
cases to the limitations set forth in the DIP Loan Documents and to Court
approval, the sum of (C) and (D), where (C) is the aggregate amount,
of any Committee’s, if one is so appointed, professional fees and disbursements
which have been incurred, accrued or invoiced (but remain unpaid) prior to the
receipt by the Committee of a Carve Out Trigger Notice for any professional
retained by an order of the Court under Section 1102 of the Bankruptcy
Code, and (D) is the aggregate amount of fees and disbursements of any Committee’s
retained professionals accrued after delivery of the Carve Out Trigger Notice,
up to $25,000.  For the avoidance of any
doubt, no success fee, transaction fee, or bonus incurred by the Debtors’
investment banker(s) or financial advisors, or any financial advisor
retained by the

 

B-30

 

Committee, shall be paid from the Carve-Out unless
and until all other allowed hourly and monthly professional fees and
disbursements have been paid in full in cash on a final basis, in all cases
subject to the limitations set forth in the DIP Budget.  No portion of the Carve-Out, no proceeds of
the DIP Facility or DIP Extensions of Credit, and no proceeds of the Prepetition
Collateral, including any Cash Collateral, or any other amounts, may be used
for the payment of the fees and expenses of any person incurred (i) in
challenging, or in relation to the challenge of, any of the Prepetition Secured
Parties’ or the DIP Secured Parties’ liens or claims (or the value of their
respective Prepetition Collateral or DIP Collateral), or the initiation or
prosecution of any claim or action against any of the Prepetition Secured
Parties or DIP Secured Parties, including any claim under Chapter 5 of the
Bankruptcy Code, or any state law or foreign law, in respect of the Prepetition
Secured Facility or the DIP Facility, or in preventing, hindering or delaying
the realization by the Prepetition Secured Parties or the DIP Secured Parties
upon any Prepetition Collateral or DIP Collateral, respectively, or the
enforcement of their respective rights under the Prepetition Secured Credit
Facility, the Prepetition Loan Documents, the DIP Facility, this Interim Order,
the Final Order or any other DIP Loan Document, (ii) in requesting
authorization, or supporting any request for authorization, to obtain
postpetition financing (whether equity or debt) or other financial
accommodations pursuant to Section 364(c) or (d) of the
Bankruptcy Code, or otherwise, other than from the First Out DIP Lenders or (iii) in
connection with any claims or causes of actions against the Releasees,
including formal or informal discovery proceedings in anticipation thereof,
and/or in challenging any Prepetition Obligations, DIP Obligations, Prepetition
Lien, Adequate Protection Lien or DIP Lien. 
Notwithstanding the foregoing limitations, up to $50,000 in the
aggregate of the Carve-Out, any Cash Collateral or any proceeds of the DIP
Facility or DIP Collateral may be used by any Committee prior to the

 

B-31

 

Challenge Period Termination Date to investigate the
matters covered by the Claims Stipulations.

 

10.           Payment of
Compensation.  Nothing herein shall be construed as a consent
to the allowance of any professional fees or expenses of any of the Debtors or
any Committee or shall limit or otherwise affect the right of the DIP Secured
Parties and/or the Prepetition Secured Parties to object to the allowance and
payment of any such fees and expenses. 
So long as no Event of Default exists that has not been waived in
writing, the Debtors shall be permitted to pay compensation and reimbursement
of expenses allowed and payable under Sections 330 and 331 of the Bankruptcy
Code and in accordance with the DIP Budget, with the variations permitted
herein, as the same may be due and payable and the same shall not reduce the
Carve-Out.

 

11.           Section 506(c) Claims.  The Debtors’ rights under Section 506(c) of
the Bankruptcy Code are preserved until entry of a Final Order; the Debtors
have agreed to seek a provision in the Final Order, in a form acceptable to the
DIP Agent, that would waive the Debtors’ rights under Section 506(c).  Nothing contained in this Interim Order, in
the Final Order or in the other DIP Loan Documents shall be deemed a consent by
the Prepetition Secured Parties or the DIP Secured Parties to any charge, lien,
assessment or claim against, or in respect of, the DIP Collateral or the
Prepetition Collateral under Section 506(c) of the Bankruptcy Code or
otherwise.

 

12.           Collateral
Rights; Limitations in Respect of Subsequent Court Orders.  Without limiting any other
provisions of this Interim Order, unless the DIP Agent and the Prepetition
Agent have provided their prior written consent, there shall not be entered in
these proceedings, or in any Successor Case, any order which authorizes (i) the
obtaining of credit or the incurring of indebtedness that is secured by a
security, mortgage, or collateral interest or

 

B-32

 

other lien on all or any portion of the DIP
Collateral and/or entitled to priority administrative status which is superior
to or pari passu with those
granted pursuant to this Interim Order to or for the benefit of the DIP Secured
Parties or the Prepetition Secured Parties, or (ii) the use of Cash
Collateral for any purpose other than as set forth in the DIP Budget.

 

13.           Proceeds of
Subsequent Financing.  Without limiting the provisions and
protections of paragraph 12 above, if at any time prior to the indefeasible
repayment and satisfaction in full in cash of all DIP Obligations and all
Prepetition Obligations (including the cash collateralization of all Letters of
Credit and all prepetition letters of credit in accordance with the DIP
Loan Documents and the Prepetition Loan Documents, as the case may be), and the
termination of the DIP Secured Parties’ obligations to make DIP Extensions of
Credit, including subsequent to the confirmation of any Chapter 11 plan or plans
(the “Plan”)  with respect
to the Debtors, the Debtors, the Debtors’ estates, any trustee, any examiner
with enlarged powers or any responsible officer subsequently appointed, shall
obtain credit or incur debt in violation of this Interim Order or the other DIP
Loan Documents, then all of the cash proceeds derived from such credit or debt
and all Cash Collateral shall immediately be turned over to the DIP Agent or
the Prepetition Agent, as the case may be, for application in accordance with
paragraph 18(b) of this Interim Order, the DIP Loan Documents and the
Prepetition Loan Documents, as applicable.

 

14.           Cash
Management.  The Debtors’ cash management system shall at
all times be maintained (i) in accordance with the terms of the DIP Loan
Documents and any order of this Court approving the maintenance of the Debtors’
cash management system, and (ii) in a manner which in any event shall be
reasonably satisfactory to the DIP Agent. 
Without limiting the immediately preceding sentence, by no later than 15
days after the entry of this Interim Order, all cash collections (including,
but not limited to, payments from customers with respect to accounts

 

B-33

 

receivable) shall be directed to lock-box deposit
accounts (“cash collection accounts”) pursuant to a lockbox and blocked
account arrangements in form and substance satisfactory to the DIP Agent.  The DIP Agent shall be deemed to have “control”
over such accounts for all purposes of perfection under the Uniform Commercial
Code. The Debtors and the financial institutions where the Debtors’ cash
collection accounts are maintained are authorized and directed at any time
during the Dominion Period to implement daily cash sweeps from the cash
collection accounts to one or more concentration accounts maintained at
Deutsche Bank AG New York Branch.  Until
the occurrence of an Event of Default, all amounts collected in the cash
collection accounts may be used in accordance with this Interim Order and the
other DIP Loan Documents; after the occurrence and during the continuance of an
Event of Default, subject only to the Debtors’ rights under paragraphs 17(b) and
17(c), all such amounts shall be applied in accordance with paragraph 18(b).

 

15.           Disposition
of DIP Collateral.  The Debtors shall not sell, transfer, lease,
encumber or otherwise dispose of any portion of the DIP Collateral, except for
sales of inventory and collection of accounts receivable in the ordinary course
of business or, if permitted by the DIP Loan Documents, as approved by the
Court to the extent required under applicable bankruptcy law.

 

16.           Survival of
Certain Provisions.  In the event of the entry of any order
converting any of these Cases into a Successor Case, the DIP Liens, the DIP
Superpriority Claim, the Adequate Protection Liens and the Adequate Protection
Superpriority Claim shall continue in these proceedings and in any Successor
Case, and such DIP Liens, DIP Superpriority Claim, Adequate Protection Liens
and Adequate Protection Superpriority Claim shall maintain their respective
priorities as provided by this Interim Order.

 

B-34

 

17.           Events of
Default; Rights and Remedies Upon Event of Default.

 

(a)           Any automatic
stay otherwise applicable to the DIP Secured Parties is hereby modified so
that, upon and after the occurrence of the Termination Date, the DIP Agent and
the Prepetition Agent shall, subject to subparagraph (b) of this paragraph
17, be entitled to exercise all of their rights and remedies in respect of the
DIP Collateral and the Prepetition Collateral, in accordance with this Interim
Order, the other DIP Loan Documents and/or the Prepetition Loan Documents, as
applicable.

 

(b)           Upon the
delivery by the DIP Agent of written notice of the occurrence of an Event of
Default, in each case given to the Debtors, counsel to the Debtors, counsel for
any Committee appointed in the Cases and the U.S. Trustee: (i)  the
Debtors shall have no right to request or use any proceeds of any DIP
Extensions of Credit or DIP Collateral, or to use Cash Collateral, other than
towards the payment of the DIP Obligations as provided herein and in the other
applicable DIP Loan Documents; provided, that, the Debtors may, subject
to the limitations set forth herein and in the other DIP Loan Documents, use
Cash Collateral and, if necessary, request and use proceeds of Advances, to pay
for payroll or other expenditures incurred prior to the Termination Date which
are critical to the Debtors’ operations and the preservation of the DIP
Collateral; (ii) the Debtors shall deliver, or cause the delivery of, any
proceeds of the DIP Extensions of Credit and DIP Collateral, and all Cash
Collateral, to the DIP Agent, as provided herein and in the DIP Loan Documents;
and (iii) subject to the provisions of paragraph 18, the DIP Agent shall
be permitted to apply such proceeds in accordance with the terms of this
Interim Order.  The Debtors and any
Committee shall be entitled to an emergency hearing before this Court within
five (5) business days after the giving of written notice by the DIP Agent
and/or the Prepetition Agent of the occurrence of an Event of Default; provided, that the only issue that

 

B-35

 

may be raised at such hearing shall be whether an
Event of Default has in fact occurred and is continuing, and such entities
hereby waive their right to seek any relief, whether under Section 105 of
the Bankruptcy Code or otherwise, that would in any way impair, limit, restrict
or delay the rights and remedies of the DIP Agent or the Prepetition Agent
under the DIP Loan Documents or the Prepetition Loan Documents.  If the Debtors or any Committee do not
contest the occurrence of the Event of Default within five (5) business
days after the giving of notice thereof, or if the Debtors or any Committee do
timely contest the occurrence of an Event of Default and the Court after notice
and a hearing declines (or otherwise within such five (5) business day
period fails) to stay the enforcement thereof, the Termination Date shall be
deemed to have occurred for all purposes and the automatic stay, as to the DIP
Agent and the Prepetition Agent, shall automatically terminate in all
respects.  Nothing herein shall preclude
the DIP Agent or the Prepetition Agent from seeking an order from the Court
upon written notice (electronically (including via facsimile) in a manner that
generates a receipt for delivery, or via overnight mail) to the U.S. Trustee,
counsel to the Debtors and counsel to the Committee, if any, authorizing the
DIP Agent and/or the Prepetition Agent to exercise any enforcement rights or
remedies with respect to the DIP Collateral on less than five (5) business
days’ notice, or the Debtors’ right to contest such relief.

 

(c)           Notwithstanding
any provision of this Interim Order or the DIP Loan Documents, and subject to
paragraph 20(b) herein, until the entry of a Final Order, the Debtors’
rights are preserved to seek (without using any portion of the proceeds of DIP
Advances or Cash Collateral) approval of any type of debtor-in-possession
financing and/or non-consensual use of Cash Collateral without the Prepetition
Secured Parties’ consent, with an arms’-length lender not affiliated with the
Prepetition Secured Parties or the Prepetition Noteholders, so long as all DIP

 

B-36

 

Obligations are paid and satisfied in full
(including cash collateralization of all Letters of Credit in accordance with
the DIP Loan Documents), and the DIP Secured Parties’ obligations under the DIP
Loan Documents are terminated, in each case prior to the Debtors incurring such
alternative indebtedness (except indebtedness immediately used to pay off the
DIP Obligations).  All of the Prepetition
Secured Parties’ and the DIP Secured Parties’ rights to oppose any such relief
are fully preserved.

 

(d)           Upon the
occurrence of the Termination Date (but subject, only in the case of the
occurrence of the Termination Date resulting from an Event of Default, to the
provisions of paragraph 17(b)), the DIP Agent and the Prepetition Agent are
authorized to exercise all remedies and proceed under or pursuant to the applicable
DIP Loan Documents and the Prepetition Loan Documents.  All proceeds realized in connection with the
exercise of the rights and remedies of the DIP Secured Parties and the
Prepetition Secured Parties shall be turned over and applied in accordance with
paragraph 18(b).

 

(e)           The automatic
stay imposed under Bankruptcy Code Section 362(a) is hereby modified
pursuant to the terms of the DIP Loan Documents as necessary to (i) permit
the Debtors to grant the Adequate Protection Liens and the DIP Liens and to
incur all DIP Obligations and all liabilities and obligations to the
Prepetition Secured Parties hereunder and under the other DIP Loan Documents,
as the case may be, and (ii) authorize the DIP Agent and Prepetition Agent
to retain and apply payments, and otherwise enforce their respective rights and
remedies hereunder.

 

(f)            Nothing
included herein shall prejudice, impair, or otherwise affect the Prepetition
Agent’s or the DIP Agent’s rights to seek (on behalf of the Prepetition Secured
Parties and the DIP Secured Parties, respectively) any other or supplemental
relief in respect of

 

B-37

 

the Debtors (including, as the case may be, other or
additional adequate protection) nor the DIP Agent’s or Prepetition Agent’s
rights to suspend or terminate the making of DIP Extensions of Credit or use of
Cash Collateral.

 

(g)           Notwithstanding
anything in this Interim Order to the contrary, the Prepetition Agent shall not
be permitted to exercise any rights or remedies for itself or the Prepetition
Secured Parties unless and until the DIP Obligations are indefeasibly paid and
satisfied in full in cash (including the cash collateralization of all Letters
of Credit in accordance with the DIP Loan Documents).

 

18.           Applications
of Proceeds of Collateral, Payments and Collections.

 

(a)           As a condition
to the DIP  Extensions of Credit and the
authorization to use Cash Collateral, each Debtor has agreed that proceeds of
any DIP Collateral and Prepetition Collateral, any amounts held on account of
the DIP Collateral or Prepetition Collateral, and all payments and collections
received by the Debtors with respect to all proceeds of DIP Collateral and
Prepetition Collateral, shall be used and applied in accordance with the DIP
Loan Documents (including repayment and reduction of the DIP Obligations and
the application of payments in accordance with the priorities between the First
Out DIP Lenders and the Last Out DIP Lenders).

 

(b)           Subject to the
Debtors’ rights under paragraphs 17(b) and 17(c) and the funding of
the Carve-Out, upon and after the occurrence of the Termination Date all
proceeds of DIP Collateral and Prepetition Collateral, whenever received, shall
be paid and applied as follows:  (i) first, to permanently and indefeasibly repay and reduce the
DIP Obligations then due and owing in accordance with the DIP Loan Documents
(including in accordance with the payment priorities provided therein as
between the First Out DIP Lenders and the Last Out DIP

 

B-38

 

Lenders), until paid and satisfied in full in cash
(including the cash collateralization of all Letters of Credit in accordance
with the DIP Loan Documents); (ii) second,
to permanently and indefeasibly repay and reduce the Prepetition Obligations
then due and owing in accordance with the Prepetition Loan Documents (including in
accordance with the payment priorities provided therein as between the First
Out Prepetition Lenders and the Last Out Prepetition Lenders) until paid and
satisfied in full in cash (including the cash collateralization of all
prepetition letters of credit in accordance with the
Prepetition Loan Documents); and (iii) third,
to the Debtors’ estates.  For avoidance
of doubt, nothing in this Interim Order shall be construed to limit the
voluntary and mandatory repayment provisions set forth in the DIP Loan
Documents.

 

19.           Proofs of
Claim, etc.  None of the
DIP Secured Parties or the Prepetition Secured Parties shall be required to
file proofs of claim in any of the Cases or any Successor Cases for any claim
allowed herein.  Notwithstanding any
order entered by the Court in relation to the establishment of a bar date in
any of the Cases or any Successor Cases to the contrary, the DIP Agent, on
behalf of itself and the DIP Secured Parties, and the Prepetition Agent, on
behalf of itself and the Prepetition Secured Parties, respectively, are hereby
authorized and entitled, in each of their sole and absolute discretion, but not
required, to file (and amend and/or supplement, as it sees fit) a proof of
claim and/or aggregate proofs of claim in each of the Cases or any Successor
Cases for any claim allowed herein; for avoidance of doubt, any such proof of
claim may (but is not required to be) filed as one consolidated proof of claim
against all of the Debtors, rather than as separate proofs of claim against
each Debtor.  Any proof of claim filed by
the DIP Agent or the Prepetition Agent shall be deemed to be in addition to and
not in lieu of any other proof of claim that may be filed by any of the
respective DIP Secured Parties or Prepetition Secured Parties.  Any order entered by the Court in relation to
the establishment of a bar date for

 

B-39

 

any claim (including without limitation
administrative claims) in any of the Cases or any Successor Cases shall not
apply to the DIP Agent, the other DIP Secured Parties, the Prepetition Agent or
the other Prepetition Secured Parties.

 

20.           Other
Rights and Obligations.

 

(a)           Good Faith Under Section 364(e) of the Bankruptcy Code; No  Modification or Stay of this Interim Order.  Based on the findings set forth
in this Interim Order and in accordance with Section 364(e) of the
Bankruptcy Code, which is applicable to the DIP Facility as approved by this
Interim Order, in the event any or all of the provisions of this Interim Order
are hereafter modified, amended or vacated by a subsequent order of this Court
or any other court, the DIP Secured Parties are entitled to the protections
provided in Section 364(e) of the Bankruptcy Code, and no such
appeal, modification, amendment or vacation shall affect the validity and
enforceability of any advances made hereunder or the liens or priority
authorized or created hereby.  Notwithstanding
any such modification, amendment or vacation, any claim granted to the DIP
Secured Parties hereunder arising prior to the effective date of such
modification, amendment or vacation of any DIP Liens or of the DIP
Superpriority Claim granted to or for the benefit of the DIP Secured Parties
shall be governed in all respects by the original provisions of this Interim
Order, and the DIP Secured Parties shall be entitled to all of the rights,
remedies, privileges and benefits, including the DIP Liens and the DIP
Superpriority Claim granted herein, with respect to any such claim.  Because the DIP Extensions of Credit are made
in reliance on this Interim Order, the DIP Obligations incurred by the Debtors
or owed the DIP Secured Parties prior to the effective date of any stay, modification
or vacation of this Interim Order shall not, as a result of any subsequent
order in the Cases or in any Successor Cases, be subordinated, lose their lien
priority or superpriority administrative expense claim

 

B-40

 

status, or be deprived of the benefit of the status
of the liens and claims granted to the DIP Secured Parties under this Interim
Order.

 

(b)           Expenses.  To the fullest extent provided in the DIP
Loan Documents, the Debtors will pay all expenses incurred by the DIP Secured
Parties (including, without limitation, the reasonable fees and disbursements
of counsel for the DIP Secured Parties, any other local or foreign counsel that
any DIP Secured Party shall retain and any internal or third-party appraisers,
consultants, financial, restructuring or other advisors and auditors advising
any such counsel) in connection with (i) the preparation, execution,
delivery, funding and administration of the DIP Loan Documents, including,
without limitation, all due diligence fees and expenses incurred or sustained
in connection with the DIP Loan Documents, (ii) the Cases or any Successor
Cases, or (iii) enforcement of any rights or remedies under the DIP Loan
Documents.  Professionals for the
Prepetition Secured Parties and the DIP Secured Parties shall not be required
to comply with the U.S. Trustee fee guidelines, but shall provide reasonably
detailed statements (redacted if necessary for privileged, confidential or
otherwise sensitive information) to the Office of the U.S. Trustee and counsel
for any Committee and the Debtors. 
Thereafter, within ten (10) days of presentment of such statements,
if no written objections to the reasonableness of the fees and expenses charged
in any such invoice (or portion thereof) is made, the Debtors shall pay in cash
all such fees and expenses of the Prepetition Agent, the DIP Agent and the
DIP Secured Parties, and their advisors and professionals.  Any objection to the payment of such fees or
expenses shall specify in writing the amount of the contested fees and expenses
and the detailed basis for such objection. 
To the extent an objection only contests a portion of an invoice, the
undisputed portion thereof shall be promptly paid.  If any such objection to payment of an invoice
(or any portion thereof) is not otherwise resolved between the Debtors, any
Committee or the U.S.

 

B-41

 

Trustee and the issuer of the invoice, either party
may submit such dispute to the Court for a determination as to the
reasonableness of the relevant disputed fees and expenses set forth in the
invoice.  This Court shall resolve any
dispute as to the reasonableness of any fees and expenses.  For the avoidance of doubt, and without
limiting any of the forgoing or any other provision of this Interim Order, the
fees specified in Section 2.08 of the DIP Credit Agreement and in (i) the
Arrangement Fee and Administrative Agent Fee Letter, among the DIP Borrower,
DBTCA and Deutsche Bank Securities Inc., (ii) the Upfront Fee and Exit Fee
Letter, among the DIP Borrower, the Initial Revolving Credit Lenders and the
Initial Last Out Term Lenders, (iii) the Restructuring Arrangement Fee
Letter, between the DIP Borrower and DBTCA, and (iv) the Enhanced Yield
Letter Agreement, among the DIP Borrower, the Initial Last Out Term Lenders and
DBTCA, are, in each case, upon entry of this Interim Order and irrespective of
any subsequent order approving or denying the DIP Facility or any other
financing pursuant to Section 364 of the Bankruptcy Code, fully entitled
to all protections of Section 364(e) of the Bankruptcy Code and are
deemed fully earned, indefeasibly paid, non-refundable, irrevocable, and
non-avoidable as of the date of this Interim Order.

 

(c)           Binding Effect.  The provisions of this Interim Order shall be
binding upon and inure to the benefit of the DIP Secured Parties and the
Prepetition Secured Parties, the Debtors, and their respective successors and
assigns (including any trustee or other fiduciary hereinafter appointed as a
legal representative of the Debtors or with respect to the property of the
estates of the Debtors) whether in the Cases, in any Successor Cases, or upon
dismissal of any such Chapter 11 or Chapter 7 case.

 

(d)           No Waiver.  The failure of the DIP Secured Parties or the
Prepetition Secured Parties to seek relief or otherwise exercise their rights
and remedies under this Interim

 

B-42

 

Order, the other DIP Loan Documents or the
Prepetition Loan Documents or otherwise, as applicable, shall not constitute a
waiver of any of the DIP Secured Parties’ or Prepetition Secured Parties’
rights hereunder, thereunder, or otherwise. 
Notwithstanding anything herein, the entry of this Interim Order is
without prejudice to, and does not constitute a waiver of, expressly or
implicitly, or otherwise impair any of the rights, claims, privileges,
objections, defenses or remedies of the DIP Secured Parties or the Prepetition
Secured Parties under the Bankruptcy Code or under non-bankruptcy law against
any other person or entity in any court, including without limitation, the
rights of the DIP Agent and the Prepetition Agent (i) to request
conversion of the Cases to cases under Chapter 7, dismissal of the Cases, or the
appointment of a trustee in the Cases, or (ii) to propose, subject to the
provisions of Section 1121 of the Bankruptcy Code, a Plan, or (iii) to
exercise any of the rights, claims or privileges (whether legal, equitable or
otherwise) on behalf of the DIP Secured Parties or the Prepetition Secured
Parties.

 

(e)           No Third Party Rights.  Except as explicitly provided for herein,
this Interim Order does not create any rights for the benefit of any third
party, creditor, equity holder or any direct, indirect, third party or
incidental beneficiary.

 

(f)            Intercreditor Issues.  Nothing in this Interim Order shall be
construed to convey on any individual DIP Lender or Prepetition Secured Lender
any consent, voting or other rights beyond those (if any) set forth in the DIP
Loan Documents and Prepetition Loan Documents, as applicable.  Nothing in this Interim Order shall be
construed to impair or otherwise affect any intercreditor, subordination or
similar agreement or arrangement in respect of the First Out Prepetition
Obligations and the Last Out Prepetition Obligations, including, without
limitation, Section 2.17 of the Prepetition Credit Agreement, or in
respect of the First

 

B-43

 

Out DIP Obligations and Last Out DIP Obligations,
including, without limitation, Sections 2.20 and 8.01 of the DIP Credit
Agreement, which, in each case were negotiated at arm’s length among
commercially sophisticated parties, comprise an integral part of the
Prepetition Secured Credit Facility and the DIP Facility (and the use of Cash
Collateral), as the case may be, and are enforceable to the fullest extent
provided by Section 510(a) of the Bankruptcy Code and applicable law.

 

(g)           Impairment.  Notwithstanding
anything to the contrary in this Interim Order, the Adequate Protection
Superpriority Claim may be impaired pursuant to a Chapter 11 Plan (defined in
the Prepetition Lender Restructuring Support Lockup Agreement) confirmed in the
Cases with the requisite vote of the Prepetition Secured Lenders holding such
claims that satisfy the requirements of Section 1126(c) of the
Bankruptcy Code so long as the Termination Date has not occurred and the
Prepetition Lender Restructuring Support Lockup Agreement has not terminated
and is otherwise in full force and effect.

 

(h)           No Marshaling.  Neither the DIP Secured Parties nor the
Prepetition Secured Parties shall be subject to the equitable doctrine of
“marshaling” or any other similar doctrine with respect to any of the DIP
Collateral or the Prepetition Collateral, as applicable.

 

(i)            Section 552(b).  Subject to a Final Order, the DIP Secured
Parties and the Prepetition Secured Parties shall each be entitled to all of
the rights and benefits of Section 552(b) of the Bankruptcy Code and
the “equities of the case” exception under Section 552(b) of the
Bankruptcy Code shall not apply to the DIP Secured Parties or the Prepetition
Secured Parties with respect to proceeds, product, offspring or profits of any
of the Prepetition Collateral or the DIP Collateral.

 

B-44

 

(j)            Amendment.  The Debtors and the DIP Agent (with the
consent of the requisite DIP Secured Parties as provided in and consistent with
their respective rights under the DIP Loan Documents) may amend, modify,
supplement or waive any provision of the DIP Loan Documents without further
notice to or approval of the Court, unless such amendment, modification,
supplement or waiver (x) increases the interest rate (other than as a
result of the imposition of the default rate) or fees charged in connection
with the DIP Facility, (y) increases the commitments of the DIP Lenders to
make DIP Extensions of Credit under the DIP Loan Documents, or (z) changes
the Termination Date.  Any such
amendments, modifications and supplements shall be filed with the Court.  Except as otherwise provided herein, no
waiver, modification, or amendment of any of the provisions hereof shall be
effective unless set forth in writing, signed by, or on behalf of, all the
Debtors and the DIP Agents (after having obtained the approval of the requisite
DIP Secured Parties as provided in the DIP Loan Documents) and approved by the
Court after notice to parties in interest.

 

(k)           Priority of Terms.  To the extent of any conflict between or
among (a) the express terms or provisions of any of the DIP Loan
Documents, the Motion, any other order of this Court, or any other agreements,
on the one hand, and (b) the terms and provisions of this Interim Order,
on the other hand, unless such term or provision herein is phrased in terms of
“defined in” or “as set forth in” the DIP Credit Agreement, the terms and
provisions of this Interim Order shall govern.

 

(l)            Survival of Interim Order.  The provisions of this Interim Order and any
actions taken pursuant hereto shall survive entry of any order which may be entered
(i) confirming any Plan in the Cases, (ii) converting any of the
Cases to a case under Chapter 7 of the Bankruptcy Code, (iii) to the
extent authorized by applicable law, dismissing any of the

 

B-45

 

Cases, (iv) withdrawing of the reference of any
of the Cases from this Court or (v) providing for abstention from handling
or retaining of jurisdiction of any of the Cases in this Court.  The terms and provisions of this Interim
Order, including the DIP Liens and DIP Superpriority Claim granted pursuant to
this Interim Order, and any protections granted to or for the benefit of the
Prepetition Secured Parties (including the Adequate Protection Liens and the
Adequate Protection Superpriority Claim), shall continue in full force and
effect notwithstanding the entry of such order, and such DIP Liens and DIP
Superpriority Claim and protections for the Prepetition Secured Parties
(including the Adequate Protection Liens and the Adequate Protection Superpriority
Claim) shall maintain their priority as provided by this Interim Order, the
other DIP Loan Documents and the Prepetition Loan Documents (as the case may
be), including any intercreditor arrangement or agreements in respect thereof,
until all of the DIP Obligations and the Prepetition Obligations have been
indefeasibly paid and satisfied in full in cash (including the cash
collateralization of all Letters of Credit and all prepetition letters of
credit in accordance with the DIP Loan Documents and the Prepetition Loan
Documents, as the case may be) and discharged.

 

(m)          Enforceability.  This Interim Order shall constitute findings
of fact and conclusions of law pursuant to Bankruptcy Rule 7052 and shall
take effect and be fully enforceable nunc pro tunc to
the Petition Date immediately upon execution hereof.

 

(n)           No  Waivers or
Modification of Interim Order.  The Debtors irrevocably waive any right to
seek any modification or extension of this Interim Order without the prior
written consent of the DIP Agent and the Prepetition Agent, and no such consent
shall be implied by any other action, inaction or acquiescence of the DIP Agent
or the Prepetition Agent.  This Interim
Order may not be modified to alter the priority of payment as between the

 

B-46

 

First Out DIP Lenders and the Last Out DIP Lenders,
or the relative lien priority of the DIP Liens, the Prepetition Liens and the
Adequate Protection Liens.

 

(o)           Waiver of any Applicable Stay.  Any applicable stay (including, without
limitation, under Interim Bankruptcy Rule 6004(h)) is hereby waived and
shall not apply to this Interim Order.

 

21.           Final
Hearing.

 

(a)           The Final
Hearing to consider entry of the Final Order and final approval of the DIP
Facility is scheduled for
[                
    ], 2009, at
[    :    ] a.m. (EST) at the
United States Bankruptcy Court for the District of Delaware.  If no objections to the relief sought in the
Final Hearing are filed and served in accordance with this Interim Order, no Final
Hearing may be held, and a separate Final Order may be presented by the Debtors
and entered by this Court.

 

(b)           On or before October     ,
2009 the Debtors shall serve, by United States mail, first-class postage
prepaid, notice of the entry of this Interim Order and of the Final Hearing
(the “Final Hearing Notice”),  together
with copies of this Interim Order and the Motion, on the Notice Parties and to
any other party that has filed a request for notices with this Court prior
thereto and to any Committee after the same has been appointed, or Committee
counsel, if the same shall have been appointed. 
The Final Hearing Notice shall state that any party in interest
objecting to the entry of the proposed Final Order shall file written
objections with the Clerk of the Court no later than October     ,
2009 at [    :    ] pm (EST), which
objections shall be served so that the same are received on or before such date
by:  (a) counsel for the Debtors,
Latham & Watkins LLP, 233 S. Wacker Drive, Chicago Illinois 60606,
facsimile: (312)997-9767, Attention: David Heller, Esq., and Douglas
Bacon, Esq; (b) local counsel for the Debtors, Young Conaway Stargatt &
Taylor, LLP, 1000 West Street, 17th Floor,
Wilmington, Delaware

 

B-47

 

19801, Attn: Kara Hammond Coyle; (c) counsel
for the DIP Agent and the Prepetition Agent, White & Case LLP,
Attn:  Scott Greissman, 1155 Avenue of
the Americas, New York, NY 10036-2787; (d) local counsel for the DIP Agent
and the Prepetition Agent, Fox Rothschild LLP, Attn: Jeffrey M. Schlerf,
Citizens Bank Center, 919 North Market Street, Suite 1300, Wilmington,
Delaware; (e) counsel to any Committee; (f) the U.S. Trustee; and (g) counsel
to the Last Out DIP Lenders, Milbank, Tweed, Hadley & McCloy LLP, 601
South Figueroa Street, Los Angeles, CA  90017 Attn: 
Paul S. Aronzon.

 

(c)           Retention of Jurisdiction.  The Court has and will retain jurisdiction to
enforce this Interim Order according to its terms.

 

SO
ORDERED by the Court October     , 2009.

 

 

	
   

  	
   

  
	
   

  	
  UNITED STATES BANKRUPTCY
  JUDGE

  
	
   

  	
   

  
	
   

  	
  Entered
  on Docket

  

 

B-48

 

EXHIBIT A

 

 

SENIOR SECURED SUPERPRIORITY
DEBTOR-IN-POSSESSION CREDIT AGREEMENT

 

Dated as of October [            ],
2009

 

Among

 

ACCURIDE CORPORATION,

as  Borrower

 

and

 

THE INITIAL REVOLVING
CREDIT LENDERS, THE INITIAL LAST OUT TERM LENDERS AND INITIAL ISSUING BANK NAMED
HEREIN,

as  Initial  Revolving  Credit  Lenders, Initial
Last  Out  Term  Lenders  and  Initial  Issuing
Bank

 

and

 

DEUTSCHE BANK TRUST
COMPANY AMERICAS,

as  Administrative  Agent

 

and

 

DEUTSCHE BANK SECURITIES
INC.,

as  Lead  Arranger  and  Lead  Bookrunner

 

and

 

GENERAL ELECTRIC CAPITAL
CORPORATION,

as  Syndication  Agent

 

 

TABLE OF CONTENTS

 

	
  Section

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I DEFINITIONS AND ACCOUNTING TERMS

  	
   

  	
  6

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01. Certain
  Defined Terms

  	
   

  	
  6

  
	
  SECTION 1.02. Computation of
  Time Periods

  	
   

  	
  49

  
	
  SECTION 1.03. Accounting
  Terms

  	
   

  	
  49

  
	
  SECTION 1.04. Currency
  Equivalent

  	
   

  	
  49

  
	
  SECTION 1.05. Uniform
  Commercial Code

  	
   

  	
  49

  
	
   

  	
   

  	
   

  
	
  ARTICLE II AMOUNTS AND TERMS OF
  THE ADVANCES AND THE LETTERS OF CREDIT

  	
   

  	
  49

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01. Last Out Term
  Advances, Revolving Credit Advances and Swingline Advances

  	
   

  	
  49

  
	
  SECTION 2.02. Making Last
  Out Term Advances, Revolving Credit Advances and Swingline Advances

  	
   

  	
  50

  
	
  SECTION 2.03. Issuance of
  and Drawings and Reimbursements Under Letters of Credit.

  	
   

  	
  54

  
	
  SECTION 2.04. Repayment of
  Advances

  	
   

  	
  60

  
	
  SECTION 2.05. Termination or
  Reduction of Commitments

  	
   

  	
  60

  
	
  SECTION 2.06. Prepayments

  	
   

  	
  61

  
	
  SECTION 2.07. Interest

  	
   

  	
  62

  
	
  SECTION 2.08. Fees

  	
   

  	
  64

  
	
  SECTION 2.09. Conversion of
  Advances

  	
   

  	
  65

  
	
  SECTION 2.10. Increased
  Costs, Etc

  	
   

  	
  65

  
	
  SECTION 2.11. Payments and
  Computations

  	
   

  	
  67

  
	
  SECTION 2.12. Taxes

  	
   

  	
  68

  
	
  SECTION 2.13. Sharing of
  Payments, Etc

  	
   

  	
  72

  
	
  SECTION 2.14. Use of
  Proceeds

  	
   

  	
  73

  
	
  SECTION 2.15. Defaulting
  Lenders

  	
   

  	
  74

  
	
  SECTION 2.16. Superpriority
  Nature of Obligations

  	
   

  	
  77

  
	
  SECTION 2.17. Bailee for
  Perfection

  	
   

  	
  77

  
	
  SECTION 2.18. No Discharge;
  Survival of Claims

  	
   

  	
  78

  
	
  SECTION 2.19. Extension of
  Maturity Date.

  	
   

  	
  78

  
	
  SECTION 2.20. Last Out Term
  Advances

  	
   

  	
  79

  
	
   

  	
   

  	
   

  
	
  ARTICLE III CONDITIONS OF EFFECTIVENESS AND LENDING

  	
   

  	
  85

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01. Conditions
  Precedent to Initial Availability

  	
   

  	
  85

  
	
  SECTION 3.02. Conditions
  Precedent to Full Availability

  	
   

  	
  90

  
	
  SECTION 3.03. Conditions
  Precedent to Each Borrowing and Issuance

  	
   

  	
  90

  
	
  SECTION 3.04. Determinations
  Under Section 3.01

  	
   

  	
  91

  

 

 

	
  ARTICLE
  IV REPRESENTATIONS AND WARRANTIES

  	
  91

  
	
   

  	
   

  
	
  SECTION 4.01. Representations and Warranties of
  the Borrower

  	
  91

  
	
   

  	
   

  
	
  ARTICLE V COVENANTS OF THE BORROWER

  	
  101

  
	
   

  	
   

  
	
  SECTION 5.01. Affirmative
  Covenants

  	
  101

  
	
  SECTION 5.02. Negative
  Covenants

  	
  111

  
	
  SECTION 5.03. Reporting
  Requirements

  	
  117

  
	
  SECTION 5.04. Financial
  Covenants

  	
  123

  
	
   

  	
   

  
	
  ARTICLE VI EVENTS OF DEFAULT

  	
  124

  
	
   

  	
   

  
	
  SECTION 6.01. Events of
  Default

  	
  124

  
	
  SECTION 6.02. Application of
  Funds

  	
  130

  
	
   

  	
   

  
	
  ARTICLE VII THE ADMINISTRATIVE AGENT

  	
  133

  
	
   

  	
   

  
	
  SECTION 7.01. Authorization
  and Action

  	
  133

  
	
  SECTION 7.02. Administrative
  Agent’s Reliance, Etc

  	
  134

  
	
  SECTION 7.03. DBTCA and
  Affiliates

  	
  135

  
	
  SECTION 7.04. Lender Party
  Credit Decision

  	
  135

  
	
  SECTION 7.05.
  Indemnification

  	
  135

  
	
  SECTION 7.06. Successor
  Administrative Agent

  	
  137

  
	
  SECTION 7.07. Lead Arranger;
  Syndication Agent

  	
  138

  
	
  SECTION 7.08. Collateral Matters

  	
  138

  
	
  SECTION 7.09. Delivery of
  Information

  	
  138

  
	
   

  	
   

  
	
  ARTICLE VIII MISCELLANEOUS

  	
  139

  
	
   

  	
   

  
	
  SECTION 8.01. Amendments,
  Etc

  	
  139

  
	
  SECTION 8.02. Notices, Etc

  	
  142

  
	
  SECTION 8.03. No Waiver;
  Remedies

  	
  142

  
	
  SECTION 8.04. Costs,
  Expenses

  	
  142

  
	
  SECTION 8.05. Right of Set
  off

  	
  144

  
	
  SECTION 8.06. Binding Effect

  	
  144

  
	
  SECTION 8.07. Assignments
  and Participations

  	
  144

  
	
  SECTION 8.08. Replacements
  of Lenders Under Certain Circumstances

  	
  147

  
	
  SECTION 8.09. Execution in
  Counterparts

  	
  148

  
	
  SECTION 8.10. No Liability
  of an Issuing Bank

  	
  148

  
	
  SECTION 8.11.
  Confidentiality

  	
  149

  
	
  SECTION 8.12. Release of
  Collateral

  	
  149

  
	
  SECTION 8.13. USA Patriot
  Act

  	
  150

  
	
  SECTION 8.14. Jurisdiction,
  Etc

  	
  150

  
	
  SECTION 8.15. Judgment

  	
  150

  
	
  SECTION 8.16. Governing Law

  	
  151

  
	
  SECTION 8.17. Waiver of Jury
  Trial

  	
  151

  
	
  SECTION 8.18. Parties
  Including Trustees; Bankruptcy Court Proceedings

  	
  151

  

 

3

 

	
  SECTION 8.19. Prepetition Loan Documents

  	
  152

  
	
  SECTION 8.20.
  Conflict of Terms

  	
  152

  

 

	
  SCHEDULES

  	
   

  
	
  Schedule
  I

  	
  Commitments
  and Lending Offices

  
	
  Schedule
  II

  	
  Subsidiary
  Guarantors

  
	
  Schedule
  1.01(a)

  	
  Concentration
  Limits

  
	
  Schedule
  4.01(b)

  	
  Subsidiaries

  
	
  Schedule
  4.01(n)

  	
  Environmental
  Issues

  
	
  Schedule
  4.01(r)

  	
  Prepetition
  Debt

  
	
  Schedule
  4.01(s)

  	
  Owned
  Real Property

  
	
  Schedule
  4.01(t)

  	
  Leased
  Real Property

  
	
  Schedule
  4.01(u)

  	
  Leases
  of Real Property

  
	
  Schedule
  4.01(v)

  	
  Intellectual
  Property

  
	
  Schedule
  5.02(a)

  	
  Existing
  Liens

  
	
  Schedule
  5.02(l)

  	
  Existing
  Accounts

  
	
  Schedule
  5.04(a)

  	
  Minimum
  Net Cash Flow Schedule

  
	
   

  	
   

  
	
  EXHIBITS

  
	
   

  
	
  Exhibit A1

  	
  -

  	
  Form of
  Revolving Credit Note

  
	
  Exhibit A2

  	
  -

  	
  Form of
  Swingline Note

  
	
  Exhibit A3

  	
  -

  	
  Form of
  Last Out Term Note

  
	
  Exhibit B

  	
  -

  	
  Form of
  Notice of Revolving Credit Borrowing

  
	
  Exhibit C

  	
  -

  	
  Form of
  Notice of Swingline Borrowing

  
	
  Exhibit D

  	
  -

  	
  Form of
  Letter of Credit Request

  
	
  Exhibit E

  	
  -

  	
  Form of
  Assignment and Acceptance

  
	
  Exhibit F

  	
  -

  	
  Form of
  Opinion of Latham & Watkins LLP, Borrower’s U.S. Counsel

  
	
  Exhibit G

  	
  -

  	
  Form of
  Opinion of In-House Counsel of Accuride Corporation

  
	
  Exhibit H

  	
  -

  	
  Form of
  Interim Borrowing Order

  
	
  Exhibit I

  	
  -

  	
  Form of
  Guarantee and Collateral Agreement

  
	
  Exhibit J

  	
  -

  	
  Form of
  Borrowing Base Certificate

  
	
  Exhibit K

  	
  -

  	
  Form of Daily Cash Report

  

 

4

 

SENIOR SECURED SUPERPRIORITY DEBTOR-IN-POSSESSION
CREDIT AGREEMENT

 

SENIOR SECURED SUPERPRIORITY DEBTOR-IN-POSSESSION
CREDIT AGREEMENT, dated as of October [          ],
2009 (this “Agreement”), among ACCURIDE CORPORATION, a Delaware
corporation (the “Borrower”), the institutional lenders listed on the
signature pages hereof as the initial last out term lenders (the “Initial
Last Out Term Lenders”), the banks, financial institutions and other
institutional lenders listed on the signature pages hereof as the initial
revolving credit lenders (the “Initial Revolving Credit Lenders”),
DEUTSCHE BANK TRUST COMPANY AMERICAS (“DBTCA”), as the initial issuing
bank (in such capacity, the “Initial Issuing Bank”) and as
administrative agent (in such capacity, together with any successor appointed
pursuant to Article VII, the “Administrative Agent”) for the Lender
Parties (as hereinafter defined), DEUTSCHE BANK SECURITIES INC., as lead
arranger and lead bookrunner (in such capacities, the “Lead Arranger”),
and GENERAL ELECTRIC CAPITAL CORPORATION, as syndication agent (in such
capacity, the “Syndication Agent”).

 

PRELIMINARY
STATEMENTS:

 

(1)           On October [              ],
2009 (the “Petition Date”), the Borrower and each of its Subsidiaries
organized or incorporated in the United States (each a “U.S. Debtor” and
collectively the “U.S. Debtors”) commenced Chapter 11 Cases Nos.
[              ]
and
[              ]
as administratively consolidated as Chapter 11 Case No. [              ]
(each a “Chapter 11 Case” and collectively, the “Chapter 11 Cases”)
by filing separate voluntary petitions for reorganization under Chapter 11 of
the Bankruptcy Code, 11 U.S.C. 101 et seq. (the “Bankruptcy Code”), with
the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy
Court”).  The Borrower continues to
operate its business and manage its properties as a debtor-in-possession
pursuant to Sections 1107 and 1108 of the Bankruptcy Code.

 

(2)           Prior
to the Petition Date, financing was provided to the Borrower and Accuride
Canada Inc., a corporation organized and existing under the law of the Province
of Ontario (“Accuride Canada”), pursuant to that certain Fourth Amended
and Restated Credit Agreement, dated as of January 31, 2005 (as amended,
modified or supplemented up to, but not including, the Closing Date, the “Prepetition
Credit Agreement”), among the Borrower, Accuride Canada, the banks,
financial institutions and other institutional lenders from time to time party
thereto (the “Prepetition Lenders”) and DBTCA, as administrative agent.

 

(3)           Pursuant
to that certain Fourth Amendment and Canadian Forbearance Agreement, dated as
of October 8, 2009, among the Borrower, Accuride Canada, DBTCA, as
administrative agent, and certain Prepetition Lenders (the “Fourth Amendment
and Canadian Forbearance Agreement”), the Prepetition Lenders party thereto
agreed to forbear from exercising any rights under the Prepetition Loan
Documents (as defined below) as a result of certain defaults under the
Prepetition Credit Agreement.

 

(4)           The
Borrower has requested that the Lenders (as defined below) provide it with (i) an
ABL revolving credit and letter of credit facility of up to $25,000,000 (the “Revolving
Credit Facility”) and (ii) a last out term loan facility of
$25,000,000 (the “Last Out Term 

 

 

Facility” and, together with the Revolving Credit
Facility, the “DIP Facility”), in each case on a Post Petition (as
defined below) basis on the terms and conditions set forth herein.

 

(5)           The
Lenders are willing to provide such financing only if all of the Obligations
(as defined below) under the Loan Documents (as defined below) and all other
obligations of the U.S. Debtors (whether as borrowers or guarantors) owing to
any Lender Party under the Loan Documents (a) constitute allowed
administrative expenses in the Chapter 11 Cases with priority under Section 364(c)(1) of
the Bankruptcy Code over any and all other administrative expenses of the kind
specified or ordered pursuant to any provision of the Bankruptcy Code,
including, but not limited to, Section 105, 326, 328, 503(b) 506(c) (subject
to the entry of the Final Borrowing Order), 507(a), 507(b) and 726 of the
Bankruptcy Code, provided that the priority status of the Obligations
and the Collateral securing the same shall be subject to the Carve-Out (as
defined below) and other Liens permitted herein and pursuant to the Orders (as
defined below) and (b) are secured by the Collateral in which the U.S.
Debtors have an interest, in each case pursuant to the Collateral Documents (as
defined below) and/or as provided in the Orders (as defined below).

 

(6)           Subject
to the terms and conditions of this Agreement and the other Loan Documents, and
subject to the terms of the Orders, the Lenders are willing to make available
to the Borrower the DIP Facility as provided for herein.

 

NOW, THEREFORE, IT IS AGREED:

 

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

 

SECTION 1.01.Certain
Defined Terms.  As used in this
Agreement, the following terms shall have the following meanings (such meanings
to be equally applicable to both the singular and plural forms of the terms
defined):

 

“Account” means an “account” as such
term is defined in Article 9 of the UCC and any and all supporting
obligations in respect thereof.

 

“Account Debtor” means each Person who is
obligated on an Account.

 

“Accounts Formula Amount” means on any date of
determination, (x) the product of (i) 85% and (ii) the Value of
the Loan Parties’ Eligible Accounts minus (y) the Dilution Reserve
on such date of determination.

 

“Accounts Information” has the meaning
specified in Section 5.03(f).

 

“Accuride Canada” has the meaning specified in
Preliminary Statement (2).

 

“Accuride Erie” means Accuride Erie LP, a
Delaware limited partnership (formerly known as AKW L.P.).

 

“Additional DIP Financing” has the meaning
specified in Section 2.20(o)(iv).

 

6

 

“Additional Interest” means 1.00% of the
aggregate principal amount of Last Out Term Advances outstanding as of the
Extension Effective Date.

 

“Administrative Agent” has the meaning
specified in the recital of parties to this Agreement.

 

“Administrative Agent’s Account” means the
account of the Administrative Agent maintained by the Administrative Agent at (a) its
office at 60 Wall Street, New York, New York 10005, Reference: Accuride DIP
Facility or (b) such other office of the Administrative Agent located in
the United States as may from time to time hereafter be designated as such in a
written notice delivered by the Administrative Agent to the Borrower and each Lender.

 

“Advance” means a Last Out Term Advance, a
Revolving Credit Advance, a Swingline Advance or a Letter of Credit Advance.

 

“Affiliate” means, as to any Person, any other
Person that, directly or indirectly, controls, is controlled by or is under common
control with such Person (or, in the case of any Lender which is an investment
fund, (a) the investment advisor thereof, and (b) any other
investment fund having the same investment advisor), or is a director or
officer of such Person.  For purposes of
this definition, the term “control” (including the terms “controlling”,
“controlled by” and “under common control with”) of a Person means the
possession, direct or indirect, of the power to vote 10% or more of the Voting
Stock of such Person or to direct or cause the direction of the management and
policies of such Person, whether through the ownership of Voting Stock, by
contract or otherwise.

 

“Affiliated Account Debtors” means, with
respect to an Account Debtor, an Affiliate of such Account Debtor which is also
an Account Debtor.

 

“Aggregate Exposure” means, at any time, the
sum of (a) the aggregate principal amount of all Revolving Credit Advances
outstanding at such time, (b) the aggregate principal amount of all
Swingline Advances outstanding at such time (exclusive of Swingline Advances
which are repaid with the proceeds of, and simultaneously with the incurrence
of, the respective incurrence of Revolving Credit Advances) and (c) the
aggregate amount of all Letter of Credit Outstandings at such time (exclusive
of Letter of Credit Outstandings that are repaid with the proceeds of, and
simultaneously with the incurrence of, the respective incurrence of Revolving
Credit Advances).

 

“Agreement” has the meaning specified in the
recital of parties to this Agreement.

 

“Anti-Terrorism Laws” means:

 

(a)           the
Executive Order No. 13224 of September 23, 2001, Blocking Property
and Prohibiting Transactions With Persons Who Commit, Threaten To Commit, or
Support Terrorism (the “Executive Order”);

 

(b)           the
USA Patriot Act;

 

7

 

(c)           the
Money Laundering Control Act of 1986, Public Law 99-570;

 

(d)           the
International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq., and the
Trading with the Enemy Act, 50 U.S.C. App. §§ 1 et seq., and any Executive
Order or regulation promulgated thereunder and administered by the Office of
Foreign Assets Control (“OFAC”) of the U.S. Department of the Treasury;
and

 

(e)           any
similar law enacted in the United States of America subsequent to the date of
this Agreement.

 

“Applicable Margin” means (i) for Advances
outstanding under the Revolving Credit Facility, (x) 5.50% per annum in
the case of Base Rate Advances (including Swingline Advances and Letter of
Credit Advances made as Base Rate Advances) and (y) 6.50% per annum in the
case of Eurodollar Rate Advances, and (ii) for Last Out Term Advances
outstanding under the Last Out Term Facility, (x) 6.50% per annum in the
case of Base Rate Advances and (y) 7.50% per annum in the case of Eurodollar
Rate Advances.

 

“Applicable Percentage” means 1.00% per annum.

 

“Appraisal Report” shall mean any appraisal
report reasonably satisfactory to the Administrative Agent and prepared by
independent consultants selected by the Administrative Agent and reasonably
satisfactory to the Borrower.

 

“Approved Plan” means a Reorganization Plan
that meets the requirements set out in the Restructuring Support Lockup
Agreements and the Restructuring Term Sheets.

 

“Assignment and Acceptance” means an assignment
and acceptance entered into by a Lender Party and permitted assignee or
transferee, and accepted by the Administrative Agent, in accordance with Section 8.07
and in substantially the form of Exhibit E hereto.

 

“Assumption Agreement” means an assumption
agreement, substantially in the form of Annex 1 to the Guarantee and Collateral
Agreement.

 

“Availability Reserve” means, with respect to
the Borrowing Base, as of any date of determination, the sum (without
duplication) of:

 

(a)          the Cash Management Reserve; plus

 

(b)         the Inventory Reserve; plus

 

(c)          the Rent Reserve; plus

 

(d)         the Senior Lien Reserve; plus

 

8

 

such other events, conditions or contingencies (and in
such amounts) in respect of which the Administrative Agent, in its Permitted
Discretion, determines additional reserves should be established from time to
time.

 

“Available LC Amount” of any Letter of Credit
means, at any time, the maximum amount available to be drawn under such Letter
of Credit at such time, in each case determined (x) as if any future
automatic increases in the maximum amount available that are provided for in
any such Letter of Credit had in fact occurred at such time and (y) without
regard to whether any conditions to drawing could then be met but after giving
effect to all previous drawings made thereunder.

 

“Avoidance Actions” shall mean the U.S.
Debtors’ claims and causes of action under Sections 502(d), 544, 545, 547, 548,
549, 550 and 553 of the Bankruptcy Code and any other avoidance actions under
the Bankruptcy Code and the proceeds thereof and property received thereby
whether by judgment, settlement, or otherwise.

 

“Back-Stop Arrangements” shall mean,
collectively, the Letter of Credit Back-Stop Arrangements and the Swingline
Back-Stop Arrangements.

 

“Bankruptcy Code” has the meaning specified in
Preliminary Statement (1).

 

“Bankruptcy Court” has the meaning specified in
Preliminary Statement (1).

 

“Base Rate” means, for any day, a rate per
annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the
Federal Funds Effective Rate in effect on such day plus 1⁄2 of 1% and (c) the
Eurodollar Rate for a Eurodollar Rate Advance denominated in U.S. Dollars with
a one-month interest period commencing on such day plus 1.0%. For purposes of
clause (c) of this definition, the Eurodollar Rate shall be determined
using the Eurodollar Rate as otherwise determined by the Administrative Agent
in accordance with the definition of Eurodollar Rate, except that (x) if a
given day is a Business Day, such determination shall be made on such day
(rather than on the second Business Day prior to the first day of an Interest
Period) or (y) if a given day is not a Business Day, the Eurodollar Rate
for such day shall be the rate determined by the Administrative Agent pursuant
to preceding clause (x) for the most recent Business Day preceding such
day; provided that the determination of the Eurodollar Rate for the
purposes of clause (c) shall disregard (A) the rounding requirement
set forth in the definition of Eurodollar Rate and (B) the last sentence
in the definition of Eurodollar Rate. 
Notwithstanding the foregoing, the Base Rate shall not be less than
3.50% per annum.

 

“Base Rate Advance” means an Advance that bears
interest as provided in Section 2.07(a)(i).

 

“Borrower” has the meaning specified in the
recital of parties to this Agreement.

 

“Borrower’s Account” means the account of the
Borrower maintained by the Borrower with the Administrative Agent at its office
at (i) 60 Wall Street, New York, New York 10005 or (ii) such other
office of the Administrative Agent as may from time 

 

9

 

to time hereafter be
designated as such in a written notice delivered by the Administrative Agent to
the Borrower and each Lender.

 

“Borrowing” means a Last Out Term Borrowing,
Revolving Credit Borrowing or a Swingline Advance.

 

“Borrowing Base” means, as of any date of
calculation, an amount equal to the sum of:

 

(a)          the Accounts Formula Amount; plus

 

(b)         the Inventory Formula Amount; minus

 

(c)          the Availability Reserves; minus

 

(d)         the aggregate outstanding principal
amount of the Last Out Term Advances; minus

 

(e)          the amount of the Carve-Out pursuant to
the terms of the Interim Borrowing Order or (when entered) the Final Borrowing
Order, if applicable.

 

The Administrative Agent shall have the right (but no
obligation) to review such computations in consultation with the Borrower and
if, in its Permitted Discretion, such computations have not been calculated in
accordance with the terms of this Agreement, the Administrative Agent shall
have the right to correct any such errors in such manner it shall determine in
its Permitted Discretion.

 

“Borrowing Base Certificate” means the Initial
Borrowing Base Certificate and each Bring Down Borrowing Base Certificate.

 

“Bring Down Borrowing Base Certificate” has the
meaning specified in Section 5.03(m).

 

“Business Day” means a day of the year on which
banks are not required or authorized by law to close in New York City, and if
the applicable Business Day relates to any Eurodollar Rate Advances, on which
dealings are carried on in the London interbank market.

 

“Capital Expenditures” means, for any Person
for any period, the sum, without duplication, of all expenditures made, directly
or indirectly (whether paid in cash or accrued as liabilities and including in
all events all amounts expended or capitalized under Capitalized Leases, but
excluding any amount representing capitalized interest), by such Person or any
of its Subsidiaries during such period for equipment, fixed assets, real
property or improvements, or for replacements or substitutions therefor or
additions thereto, that have been or should be, in accordance with GAAP,
reflected as additions to property, plant or equipment on a Consolidated
balance sheet of such Person; provided that Capital Expenditures shall
not include (without duplication) (a) any expenditures made in connection
with the replacement, substitution, repair or restoration of any assets 

 

10

 

to the extent financed (i) with
insurance proceeds received by the Borrower or any of its Subsidiaries on
account of the loss of, or any damage to, the assets being replaced,
substituted for, repaired or restored or (ii) with the proceeds of any
compensation awarded to the Borrower or any of its Subsidiaries as a result of
the taking, by eminent domain or condemnation, of the assets being replaced or
substituted for or (b) any expenditures for the purchase price of any equipment
that is purchased simultaneously with the trade-in of any existing equipment by
the Borrower or any of its Subsidiaries to the extent that the gross amount of
such purchase price is reduced by any credit granted by the seller of such
equipment for the equipment being traded in.

 

“Capital Security” shall mean, with respect to
any Person, (a) any share of capital stock of or other unit of ownership
interest in such Person and (b) any security convertible into, or any
option, warrant or other right to acquire, any share of capital stock of or
other unit of ownership interest in such Person.

 

“Capitalized Leases” means all leases that have
been or should be, in accordance with GAAP, recorded as capitalized leases.

 

“Carve-Out” has the meaning provided in the
Orders.

 

“Cash Collateral” has the meaning set forth in
the Orders.

 

“Cash Collateral Account” has the meaning
specified in Section 5.01(r)(iii).

 

“Cash Equivalents” means (a) marketable
securities (i) issued or directly and unconditionally guaranteed as to
interest and principal by the United States government or (ii) issued by
any agency of the United States of America the obligations of which are backed
by the full faith and credit of the United States, in each case maturing within
24 months after the date of acquisition thereof; (b) marketable direct
obligations issued by any state of the United States of America or any
political subdivision of any such state or any public instrumentality thereof,
in each case maturing within 12 months after the date of acquisition thereof
and having, at the time of the acquisition thereof, an investment grade rating
generally obtainable from either Standard & Poor’s Ratings Services (“S&P”)
or Moody’s Investors Service, Inc. (“Moody’s”); (c) commercial
paper maturing no more than 12 months from the date of creation thereof and
having, at the time of the acquisition thereof, a rating of a least A-1 from
S&P or at least P-1 from Moody’s; (d) domestic certificates of deposit
or bankers’ acceptances maturing within 12 months after the date of acquisition
thereof and issued or accepted by any Lender or by any other commercial bank
organized under the laws of the United States or any state thereof or the
District of Columbia that has combined capital and surplus of not less than
$500,000,000; (e) repurchase agreements with a term of not more than 30
days for underlying securities of the types described in clauses (a) and (b) above,
that are entered into with any commercial bank meeting the requirements
specified in clause (d) above, (f) shares of investment companies
that are registered under the Investment Company Act of 1940 and that invest
solely in one or more of the types of investments referred to in clauses (a) through
(e) above, and (g) in the case of any Subsidiary which is not a U.S.
Person, high 

 

11

 

quality, short-term
liquid Investments made by such Subsidiary in the ordinary course of managing
its surplus cash position in a manner consistent with past practices.

 

“Cash Management Agreement” shall mean any
agreement to provide (i) cash management services, including treasury,
depository, overdraft, credit or debt card, electronic funds transfer and other
cash management arrangements, (ii) commercial credit card and merchant
card services, or (iii) other banking products or services as may be
requested by any Loan Party, other than Letters of Credit.

 

“Cash Management Control Agreement” means a “control
agreement” in form and substance reasonably acceptable to the Administrative
Agent and containing terms regarding the treatment of all cash and other
amounts on deposit in (or credited to) the respective Deposit Account governed
by such Cash Management Control Agreement consistent with the requirements of Section 5.01(r).

 

“Cash Management Creditors” shall mean,
collectively, Fifth Third Bank and each Lender and/or any Affiliate thereof
that has entered into one or more Secured Cash Management Agreements, even if
such Person is not or subsequently ceases to be a Lender under this Agreement
for any reason, together with such Person’s or their Affiliate’s successors, if
any, for so long as such Person or their Affiliate (or successor thereof)
participates in such Secured Cash Management Agreement.

 

“Cash Management Obligations” means all
obligations and liabilities (other than Debt) owing by any Loan Party to the
Cash Management Creditors, whether now existing or hereafter incurred under,
arising out of or in connection with any Secured Cash Management Agreement,
whether such Secured Cash Management Agreement is now in existence or
hereinafter arising.

 

“Cash Management Reserve” shall mean a reserve
established by the Administrative Agent from time to time in its Permitted
Discretion in respect of the Borrower’s liabilities (or potential liabilities)
as part of its cash management system under any Secured Cash Management
Agreements such as, but not limited to, reserves for returned items, customary
charges for maintaining Deposit Accounts and similar items, as such amounts are
from time to time notified by each Cash Management Creditor to the
Administrative Agent and the Borrower.

 

“CERCLA” means the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended from time to time.

 

“Change of Control” means, and shall be deemed
to have occurred, if: (a) any “person” or “group” (as such terms are used
in Sections 13(d) and 14(d) of the Exchange Act, excluding the
Permitted Investors, shall have become the “beneficial owner” (as defined in Rules 13(d)-3
and 13(d) 5 under the Exchange Act), directly or indirectly, of more than
30% of the outstanding Voting Stock of the Borrower; and/or (b) at any
time Continuing Directors shall not constitute a majority of the Board of
Directors of the Borrower. For purposes of this definition, “Continuing
Director” means, as of any date of determination, an individual (i) who is
a member of the Board of Directors of the 

 

12

 

Borrower on the Closing
Date, (ii) who, as of such date of determination, has been a member of
such Board of Directors for at least the 12 preceding months (or, if such date
of determination occurs during the period comprising the first 12 months after
the Closing Date, since the Closing Date), or (iii) who is recommended by
at least a majority of the then Continuing Directors or who receives the vote
of the Permitted Investors in his or her election by the shareholders of the
Borrower.

 

“Chapter 11 Case” and “Chapter 11 Cases”
respectively have the meanings specified in Preliminary Statement (1).

 

“Closing Date” has the meaning specified in Section 3.01.

 

“Collateral” means all Prepetition and Post
Petition property (whether real, personal or mixed) of the Loan Parties,
whether arising before or existing on the Petition Date or acquired thereafter,
and the proceeds of all of the foregoing, with respect to which any security
interests have been granted (or purported to be granted) pursuant to (a) any
Collateral Document, (b) this Agreement, (c) the Interim Borrowing
Order or the Final Borrowing Order, as applicable, and/or (d) any
additional Final Orders or other orders of the Bankruptcy Court under the
Chapter 11 Cases.

 

“Collateral Documents” means the Guarantee and
Collateral Agreement, any Cash Management Control Agreements and any other
agreement that creates or purports to create a Lien in favor of the
Administrative Agent for the benefit of the Secured Parties.

 

“Collection Bank” has the meaning specified in Section 5.01(r)(i).

 

“Commingled Inventory” means Inventory of the
Borrower or any Subsidiary Guarantor that is commingled (whether pursuant to a
consignment, a toll manufacturing agreement or otherwise) with Inventory of
another Person (other than the Borrower or another Subsidiary Guarantor organized
under the same jurisdiction of the Borrower or such Subsidiary Guarantor) at a
location owned or leased by the Borrower or a Subsidiary Guarantor to the
extent that such Inventory of the Borrower or such Subsidiary Guarantor is not
readily identifiable.

 

“Commitment” means a Last Out Term Commitment
or a Revolving Credit Commitment.

 

“Confidential Information” has the meaning
specified in Section 8.11(a).

 

“Consolidated” refers to the consolidation of
accounts in accordance with GAAP.

 

“Cram-down Plan” has the meaning provided in Section 6.01(a)(ix) hereof.

 

“Conversion”, “Convert” and “Converted”
each refer to a conversion of Advances of one Type into Advances of the other
Type pursuant to Section 2.09 or 2.10.

 

“Core Concentration Account” has the meaning
specified in Section 5.01(r)(ii).

 

13

 

“Covered Disposition” shall mean (i) any
Recovery Event with respect to Collateral and (ii) any other sale,
transfer, disposition or assignment of Collateral which does not give rise to
an Account.

 

“DBTCA” has the meaning specified in the
recital of parties to this Agreement.

 

“Debt” of any Person means, without
duplication, (a) all indebtedness, liabilities and obligations of such
Person for borrowed money, (b) all Obligations of such Person for the
deferred purchase price of property or services (other than trade payables and
accrued expenses incurred in the ordinary course of such Person’s business)
that in accordance with GAAP would be shown on the liability side of the
balance sheet of such Person, (c) all Obligations of such Person evidenced
by notes, bonds, debentures or other similar instruments, (d) all
Obligations of such Person created or arising under any conditional sale or
other title retention agreement with respect to property acquired by such
Person (even though the rights and remedies of the seller or lender under such
agreement in the event of default are limited to repossession or sale of such
property), it being understood that if such Person has not assumed or otherwise
become liable for such Obligations, the amount of the Debt of such Person in
connection therewith shall be limited to the lesser of the face amount of the
related Obligations or the fair market value of all property of such Person securing
such Obligations, (e) all Obligations of such Person as lessee under
Capitalized Leases, (f) all Obligations, contingent or otherwise, of such
Person under acceptance, letter of credit or similar facilities issued for the
account of such Person, (g) all Obligations of such Person in respect of
Hedge Agreements, (h) all Off-Balance Sheet Liabilities of such Person, (i) all
Disqualified Capital Securities issued by such Person with the amount of Debt
represented by such Disqualified Capital Securities being equal to the greater
of its voluntary or involuntary liquidation preference and its maximum fixed
repurchase price, but excluding accrued dividends, if any, (j) all Debt of
others referred to in clauses (a) through (i) above or clause (k) below
guaranteed directly or indirectly in any manner by such Person, or in effect
guaranteed directly or indirectly by such Person through an agreement (i) to
pay or purchase such Debt or to advance or supply funds for the payment or
purchase of such Debt, (ii) to purchase, sell or lease (as lessee or
lessor) property, or to purchase or sell services, primarily for the purpose of
enabling the debtor to make payment of such Debt or to assure the holder of
such Debt against loss, (iii) to supply funds to or in any other manner
invest in the debtor (including any agreement to pay for property or services
irrespective of whether such property is received or such services are
rendered) or (iv) otherwise to assure a creditor against loss; provided
that any such guaranteed Obligations shall not include endorsements of
instruments for deposit or collection in the ordinary course of business, and (k) all
Debt referred to in clauses (a) through (j) above of another Person
secured by (or for which the holder of such Debt has an existing right,
contingent or otherwise, to be secured by) any Lien on property (including,
without limitation, accounts and contract rights) owned by such Person, even
though such Person has not assumed or become liable for the payment of such
Debt; provided that the amount of Debt of such Person under clauses (j) and
(k) above shall (subject to any obligation set forth therein) be deemed to
be the principal amount of the Debt guaranteed or secured thereby and, with
respect to any Lien on property of such Person as described in clause (k) above,
if such Person has not assumed or otherwise become liable for any such Debt,
the amount of the 

 

14

 

Debt of such Person in
connection therewith shall be limited to the lesser of the face amount of such
Debt or the fair market value of all property of such Person securing such
Debt.

 

For the purposes hereof, the “maximum fixed repurchase
price” of any Disqualified Capital Securities which do not have a fixed
repurchase price shall be calculated in accordance with the terms of such
Disqualified Capital Securities as if such Disqualified Capital Securities were
purchased on any date on which Debt shall be required to be determined pursuant
to this Agreement, and if such price is based upon, or measured by, the fair
market value of such Disqualified Capital Securities, such fair market value to
be determined reasonably and in good faith by the Board of Directors of the
issuer of such Disqualified Capital Securities. Notwithstanding the foregoing,
“Debt” shall not include trade payables and accrued liabilities incurred in the
ordinary course of business for the purchase of goods or services that are not
secured by a Lien other than a Permitted Lien or a Lien permitted under Section 5.02(a) and
that are not overdue by more than 180 days.

 

“Default” means any Event of Default or any
event that would constitute an Event of Default but for the requirement that
notice be given or time elapse or both.

 

“Defaulted Advance” means, with respect to any
Lender Party at any time, the portion of any Advance (including any Mandatory
Borrowing) required to be made by such Lender Party to the Borrower pursuant to
Section 2.01 or 2.02 at or prior to such time that has not been made by
such Lender Party or by the Administrative Agent for the account of such Lender
Party pursuant to Section 2.02(g) as of such time.  In the event that a portion of a Defaulted
Advance shall be deemed made pursuant to Section 2.15(a), the remaining
portion of such Defaulted Advance shall be considered a Defaulted Advance
originally required to be made pursuant to Section 2.01 on the same date
as the Defaulted Advance so deemed made in part.

 

“Defaulted Amount” means, with respect to any
Lender Party at any time, any amount required to be paid by such Lender Party
to the Administrative Agent or any other Lender Party hereunder or under any
other Loan Document at or prior to such time which has not been so paid as of
such time, including, without limitation, any amount required to be paid by
such Lender Party to (a) the Administrative Agent pursuant to Section 2.02(g) to
reimburse the Administrative Agent for the amount of any Advance made by the
Administrative Agent for the account of such Lender Party, (b) the
Swingline Bank pursuant to Section 2.02(c) to purchase a Pro Rata
Share of a participation in a Swingline Advance made by the Swingline Bank, (c) an
Issuing Bank, either (i) pursuant to Section 2.03(d)(i) to
purchase (as Participant) its Pro Rata Share in any Letter of Credit issued by
such Issuing Bank or (ii) pursuant to Section 2.03(d)(iii) to
fund (as Participant) its Pro Rata Share of any unreimbursed Letter of Credit
Advance made by such Issuing Bank pursuant to any Letter of Credit issued by
such Issuing Bank, (d) any other Lender Party pursuant to Section 2.13
to purchase any participation in Advances owing to such other Lender Party and (e) the
Administrative Agent, the Swingline Bank or an Issuing Bank pursuant to Section 7.05
to reimburse the Administrative Agent, the Swingline Bank or such Issuing Bank
for such Lender Party’s 

 

15

 

Pro Rata Share of any
amount required to be paid by the Lender Parties to the Administrative Agent,
the Swingline Bank or such Issuing Bank as provided therein.  In the event that a portion of a Defaulted
Amount shall be deemed paid pursuant to Section 2.15(b), the remaining
portion of such Defaulted Amount shall be considered a Defaulted Amount
originally required to be paid hereunder or under any other Loan Document on
the same date as the Defaulted Amount so deemed paid in part.

 

“Defaulting Lender” means, at any time, any
Lender Party that, at such time, (a) owes a Defaulted Advance or a
Defaulted Amount or has notified the Administrative Agent, the Swingline Bank
or any Issuing Bank that it does not intend to comply with its obligations
under Sections 2.01(a), 2.01(b), 2.01(c) or 2.03(d) in circumstances
where such non-compliance would constitute a breach of such Lender’s obligations
under the respective Section, (b) has taken any action or become the
subject of any action or proceeding of a type described in Section 6.01(f) (replacing
references therein to any “Subsidiary of a Loan Party that is not a Debtor”
with references to a “Lender”) or has notified the Administrative Agent, the
Swingline Bank or any Issuing Bank of the same or (c) has become the
subject of a takeover by a Governmental Authority or shall notify the
Administrative Agent, the Swingline Bank or any Issuing Bank of the same; provided
that, for purposes of (and only for purposes of) Section 2.03(d) and Section 2.15(e) and
any documentation entered into pursuant to the Back-Stop Arrangements (and the
term “Defaulting Lender” as used therein), the term “Defaulting Lender”
shall also include, as to any Lender, at such time (i) any Affiliate of
such Lender that has “control” (within the meaning provided in the
definition of “Affiliate”) of such Lender that is deemed to have, or has,
become the subject of any action or proceeding of a type described in Section 6.01(f) (replacing
references therein to any “Subsidiary of a Loan Party that is not a Debtor”
with references to a “Lender”) or has become the subject of a takeover by a
Governmental Authority or does not meet a capital adequacy or liquidity
requirement applicable to such Affiliate as determined by the relevant
Governmental Authority, (ii) that Lender, if that Lender has previously
cured a “Defaulted Advance” or a “Defaulted Amount” under this
Agreement, unless such “Defaulted Advance” or “Defaulted Amount”
has been cured and has subsequently ceased to exist for a period of at least 90
consecutive days prior to such time, (iii) that Lender, if it is in
default with respect to its obligations under any other credit facility to
which it is a party and which the Administrative Agent, the Swingline Bank or
any Issuing Bank believes in good faith has occurred and is continuing, and (iv) that
Lender, if that Lender has failed to make available its portion of any Advance
or to fund its portion of any unreimbursed payment with respect to a Letter of
Credit pursuant to Section 2.03(d)(iii) within one (1) Business
Day of the date (x) the Administrative Agent (in its capacity as a Lender)
or (y) (A) Revolving Credit Lenders constituting the Majority Lenders
with Revolving Credit Commitments or (B) Last Out Term Lenders
constituting the Last Out Requisite Lenders with Last Out Term Commitments, as
the case may be, has or have, as applicable, funded its or their portion
thereof.

 

“Deposit Account” shall mean a demand, time,
savings, passbook or like account established by a Loan Party with a bank,
savings and loan association, credit union or like organization located in the
United States or a state thereof or the District of Columbia.

 

16

 

“Dilution” shall mean, as of any date of
determination, as to the Accounts owned by the Loan Parties, a percentage,
based upon the experience of the immediately prior three (3) consecutive
months, that is the result of dividing the U.S. Dollar amount of (a) bad
debt write downs, discounts, advertising allowances, credits, volume or other
rebates, returns, chargebacks, aged credits or other dilutive items with
respect to such Accounts during such period, by (b) billings with respect
to such Accounts during such period.

 

“Dilution Reserve” means, as of any date of
determination, as to the Accounts owned by the Loan Parties, an amount equal to
the product of (x) the amount (if positive), expressed as a percentage, by
which Dilution of the Accounts owned by the Loan Parties exceeds 5.00% and (y) the
Value of Eligible Accounts owned by the Loan Parties.

 

“DIP Budget” has the meaning specified in Section 5.03(e).

 

“DIP Facility” has the meaning specified in
Preliminary Statement (4).

 

“DIP Forecast” means the Interim Initial DIP
Forecast, the Initial DIP Forecast and any Updated DIP Forecast delivered in
accordance with the provisions of this Agreement.

 

“Disbursement Account” shall mean each
Deposit Account maintained by a Loan Party for its general corporate purposes,
including for the purpose of paying trade payables and other operating expenses
(other than a disbursement account that is an Excluded Account).

 

“Disqualified Capital Securities” shall mean
any Capital Securities which, by its terms (or by the terms of any security
into which it is convertible or for which it is exchangeable), or upon the
happening of any event (other than an event which would constitute a Change of
Control), (i) matures or is mandatorily redeemable, pursuant to a sinking
fund obligation or otherwise, or is redeemable at the sole option of the holder
thereof, in whole or in part, on a date on or prior to one year after the
Termination Date, in each case, other than a maturity or redemption that
entitles the holder of such Capital Security to receive common stock of the
Borrower as sole consideration upon maturity or redemption, or (ii) is
convertible into or exchangeable for (whether at the option of the issuer or
the holder thereof) (a) debt securities or (b) any Capital Securities
referred to in clause (i) above, in each case at any time on a date on or
prior to one year after the Termination Date; provided that only the
portion of Capital Securities that so matures or is mandatorily redeemable, is
so convertible or exchangeable or is so redeemable at the option of the holder
thereof prior to such date shall be deemed to be Disqualified Capital
Securities.

 

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

 

“Dominion Period” shall mean any period (i) commencing
on the date on which (w) an Event of Default has occurred and is
continuing or (x) any Advance (other than a Last Out Term Advance) is
outstanding and (ii) ending on the first date thereafter on 

 

17

 

which (y) no Event
of Default exists and (z) there have been no Advances (other than any Last
Out Term Advances) outstanding for 30 consecutive days.

 

“Effect of Bankruptcy” means, with respect to
any contractual obligation, contract or agreement to which the Borrower or any
of its Subsidiaries is a party, any default or other legal consequences arising
on account of the commencement or the filing of the Chapter 11 Cases, as
applicable (including the implementation of any stay), or the rejection of any
such contractual obligation, contract or agreement with the approval of the
Bankruptcy Court if required under applicable Law.

 

“Eligible Account” means, at any time, the
Value of the Accounts originated by a Loan Party in the ordinary course of its
business, that arise out of its bona fide sale of goods (other than promotional
products) or rendition of services substantially in accordance with the
provisions of any purchase order, contract or other document relating thereto,
that comply in all material respects with each of the representations and
warranties relating to Eligible Accounts made in the Loan Documents. The
Administrative Agent shall have the right to establish, modify or eliminate
reserves against Eligible Accounts from time to time in its Permitted
Discretion including the right to modify or amend the exclusions set forth
below. Without limiting the Administrative Agent’s discretion provided herein,
Eligible Accounts shall not include any Account:

 

	
  (a)

  	
  which
  is not subject to a first priority perfected Lien in favor of the
  Administrative Agent for the benefit of the Secured Parties;

  
	
   

  	
   

  
	
  (b)

  	
  which
  is subject to any Lien other than (i) a Lien in favor of the
  Administrative Agent for the benefit of the Secured Parties and (ii) a
  Lien (if any) permitted by the Loan Documents which does not have priority
  over the Lien in favor of the Administrative Agent for the benefit of the
  Secured Parties;

  
	
   

  	
   

  
	
  (c)

  	
  with
  respect to which (i) the scheduled due date is more than 90 days after
  the original invoice date or, in respect of farm invoices only, 180 days
  after the original invoice date (provided that the aggregate Value of
  Accounts with a scheduled due date more than 90 days after the original
  invoice date shall not, at any time, exceed $5,000,000), (ii) is unpaid
  more than 60 days after the original due date, or (iii) which has been
  written off the books of the Loan Party or otherwise designated as
  uncollectible;

  
	
   

  	
   

  
	
  (d)

  	
  which
  is owing by an Account Debtor for which more than 50% of the Accounts owing
  from such Account Debtor and its Affiliates are ineligible under Clause
  (c) above;

  
	
   

  	
   

  
	
  (e)

  	
  which (i) does not
  arise from the sale of goods or performance of services in the ordinary
  course of business, (ii) is not evidenced by an invoice or other documentation
  which has been sent to the Account Debtor, (iii) represents a progress
  billing, (iv) is contingent upon any Loan Party’s completion of any
  further performance, (v) represents a sale on a bill-and-hold,
  guaranteed sale,

  

 

18

 

	
   

  	
  sale-and-return,
  sale on approval, consignment, cash-on-delivery or any other repurchase or
  return basis, (vi) relates to payments of interest, or
  (viii) includes any other terms by reason of which the payment by an
  Account Debtor may be conditional;

  
	
   

  	
   

  
	
  (f)

  	
  for
  which the goods giving rise to such Account have not been shipped (or have
  been shipped other than FOB (seller’s location)) and billed to the Account
  Debtor or for which the services giving rise to such Account have not been
  performed and billed by a Loan Party or if such Account was invoiced more
  than once;

  
	
   

  	
   

  
	
  (g)

  	
  with
  respect to which (A) any check or other instrument of payment has been
  returned uncollected for any reason or (B) any return, rejection or
  repossession of any of the merchandise giving rise to such Account has
  occurred, but only to the extent of the value of the check returned
  uncollected or the goods returned, rejected or repossessed;

  
	
   

  	
   

  
	
  (h)

  	
  which
  is owed by an Account Debtor which has (i) applied for, suffered, or
  consented to the appointment of any receiver, custodian, trustee, or
  liquidator of its assets, (ii) has had possession of all or a material
  part of its property taken by any receiver, custodian, trustee or liquidator,
  (iii) filed, or had filed against it, any request or petition for
  liquidation, reorganization, arrangement, adjustment of debts, adjudication
  as bankrupt, winding-up, or voluntary or involuntary case under any state,
  provincial or federal bankruptcy laws, (iv) has admitted in writing its
  inability, or is generally unable to, pay its debts as they become due,
  (v) become insolvent, (vi) ceased operation of its business or
  (vii) suffered a material impairment of its financial condition;

  
	
   

  	
   

  
	
  (i)

  	
  which
  is owed by any Account Debtor which has sold all or a substantially all of
  its assets;

  
	
   

  	
   

  
	
  (j)

  	
  which
  is (i) owed by an Account Debtor which is not a Governmental Authority
  which (A) does not maintain its chief executive office in the U.S. or
  Canada (provided that the aggregate Value of Accounts owed by an
  Account Debtor which maintains its chief executive office in Canada shall
  not, at any time, exceed $1,000,000) and (B) is not organized under
  applicable law of the U.S., Canada or any political subdivision thereof or
  (ii) is designated for payment collection in Canada or any other
  jurisdiction outside the U.S.;

  
	
   

  	
   

  
	
  (k)

  	
  which
  is owed in any currency other than U.S. Dollars or Canadian Dollars (up to
  the cap limit referred to in the proviso of paragraph (j)(i)(A));

  
	
   

  	
   

  
	
  (l)

  	
  which is owed by
  (i) any Governmental Authority of any country other than the U.S., or
  (ii) any Governmental Authority of the U.S., unless the Federal
  Assignment of Claims Act of 1940, as amended (31 U.S.C. § 3727 et seq. and 41
  U.S.C. § 15 et seq.), and any other steps necessary to perfect the Lien of

  

 

19

 

	
   

  	
  the
  Administrative Agent for the benefit of the Secured Parties in such Account
  have been complied with to the Administrative Agent’s satisfaction;

  
	
   

  	
   

  
	
  (m)

  	
  which
  is owed by any Affiliate, employee, officer, director, agent or stockholder
  of any Loan Party;

  
	
   

  	
   

  
	
  (n)

  	
  which
  (A) is owed by an Account Debtor or any Affiliate of such Account Debtor
  which is a creditor of any Loan Party or has disputed its obligation to pay
  all or any portion of the Account or (B) is subject to any security,
  deposit (including any pallet deposit), progress payment, retainage, set-off,
  chargeback or other similar advance made by or for the benefit of an Account
  Debtor, in each case to the extent (including, without limitation, with
  respect to rebates, including cash rebates) of such creditor claim or amount
  in dispute or to the extent of such security, deposit (including any pallet
  deposit), progress payment, retainage, set-off, chargeback or other similar
  advance;

  
	
   

  	
   

  
	
  (o)

  	
  which
  is subject to any counterclaim, deduction, defense, setoff or dispute but
  only to the extent of any such counterclaim, deduction, defense, setoff or
  dispute;

  
	
   

  	
   

  
	
  (p)

  	
  which
  is evidenced by any promissory note, chattel paper, or instrument;

  
	
   

  	
   

  
	
  (q)

  	
  which
  was partially paid and such Loan Party created a new receivable for the
  unpaid portion of such Account;

  
	
   

  	
   

  
	
  (r)

  	
  which
  does not comply in all material respects with the requirements of all
  applicable laws and regulations, whether Federal, state or local, including
  without limitation the Federal Consumer Credit Protection Act, the Federal
  Truth in Lending Act and Regulation Z of the Board of Governors of the
  Federal Reserve System of the United States;

  
	
   

  	
   

  
	
  (s)

  	
  which
  is for goods that have been sold under a purchase order or pursuant to the
  terms of a contract or other agreement or understanding (written or oral)
  that indicates or purports that any Person other than such Loan Party has or
  has had an ownership interest in such goods, or which indicates any party
  other than such Loan Party as payee or remittance party;

  
	
   

  	
   

  
	
  (t)

  	
  which
  was created on cash on delivery terms;

  
	
   

  	
   

  
	
  (u)

  	
  with respect to which
  the applicable Loan Party has made any agreement with any Account Debtor
  (i) for any deduction therefrom, except for (x) volume discounts
  and discounts or allowances for prompt payment, all of which discounts or
  allowances are reflected in the calculation of the face value of each
  respective invoice related thereto and (y) returns, rebates or credits
  reflected in the calculation of the face value of each such invoice (in each
  case, only to the extent of such discount, allowance, return, rebate or
  credit) or (ii) for any adjustment, extension, compromise or settlement
  thereof, except for adjustments, extensions, compromises and settlements made
  in the

  

 

20

 

	
   

  	
  ordinary
  course of business (and not related to the creditworthiness of the Account
  Debtor);

  
	
   

  	
   

  
	
  (v)

  	
  which
  have not been invoiced or which are not for a sum certain;

  
	
   

  	
   

  
	
  (w)

  	
  for
  which credit insurance has been requested and denied;

  
	
   

  	
   

  
	
  (x)

  	
  which
  is not payable to any Loan Party;

  
	
   

  	
   

  
	
  (y)

  	
  with
  respect to which the agreements evidencing such Accounts are not governed by
  the laws of any state of the United States or the District of Columbia;

  
	
   

  	
   

  
	
  (z)

  	
  which
  represents service charges or late fees;

  
	
   

  	
   

  
	
  (aa)

  	
  of any Account Debtor
  (and its Affiliated Account Debtors) whose Accounts in aggregate owing to the
  Loan Parties exceed 10% of the aggregate amount of all Accounts of the Loan
  Parties (or, in the case of those Account Debtors (collectively with their
  respective Affiliated Account Debtors) listed on Schedule 1.01(a), the
  respective percentage of the aggregate amount of all Accounts of the Loan
  Parties set forth opposite the names of such Account Debtors (and their
  respective Affiliated Account Debtors) on Schedule 1.01(a), provided
  that any such percentages set forth in such Schedule as applied to a
  particular Account Debtor (and its Affiliated Account Debtors) is subject to
  reduction by the Administrative Agent, in its Permitted Discretion, if the
  creditworthiness of such Account Debtor (and its Affiliated Account Debtors)
  materially deteriorates; provided, further that at the request
  of the Borrower, and with the consent of the Supermajority Revolving Credit
  Lenders, the names of additional Account Debtors (and their respective
  Affiliated Account Debtors) may be added to Schedule 1.01(a) from time
  to time.

  

 

All percentage limitations set forth above shall apply
on an aggregate basis as among all Accounts whether owing to the Borrower or a
Subsidiary Guarantor.  In the event that
an Account which was previously an Eligible Account ceases to be an Eligible
Account hereunder, such Loan Party shall notify the Administrative Agent
thereof on and at the time of submission to the Administrative Agent of the
next Borrowing Base Certificate.  In
determining the amount of an Eligible Account, the face amount of an Account
may, in the Administrative Agent’s Permitted Discretion, be reduced by, without
duplication, to the extent not reflected in such face amount, (i) the
amount of all accrued and actual (A) customer deposits, (B) returns, (C) rebates,
(D) discounts (which may at the Administrative Agent’s discretion, be calculated
on shortest terms), (E) claims (including warranty claims), (F) credits
or credits pending, (G) promotional program allowances, (H) price
adjustments, (I) bonding subrogation rights to the extent not cash
collateralized, (J) accrued and unpaid Taxes (including sales, excise or
other taxes) of any nature at any time issued, owing, claimed by Account
Debtors, granted, outstanding or payable in connection with such Accounts at
such time and/or (K) finance charges and 

 

21

 

(ii) the aggregate
amount of all cash received in respect of such Account but not yet applied by
such Loan Party to reduce the amount of such Account (such net amount, the “Value”).

 

“Eligible Inventory” means, at any time, all of
the Inventory owned by a Loan Party reflected in the most recent Borrowing Base
Certificate delivered by the Borrower to the Administrative Agent, that
complies in all material respects with each of the representations and
warranties relating to Eligible Inventory made in the Loan Documents.  The Administrative Agent shall have the right
to establish, modify or eliminate reserves against Eligible Inventory from time
to time in its Permitted Discretion including the right to modify or amend the
exclusions set forth below. Without limiting the Administrative Agent’s
discretion provided herein, Eligible Inventory shall not include any Inventory:

 

	
  (a)

  	
  which
  is not subject to a first priority perfected Lien in favor of the
  Administrative Agent for the benefit of the Secured Parties;

  
	
   

  	
   

  
	
  (b)

  	
  which
  is subject to any Lien other than (i) a Lien in favor of the
  Administrative Agent for the benefit of the Secured Parties and (ii) a
  Permitted Lien which does not have priority over the Lien in favor of the
  Administrative Agent for the benefit of the Secured Parties;

  
	
   

  	
   

  
	
  (c)

  	
  which
  is, based upon the most recent Appraisal Report received by the
  Administrative Agent, slow moving, obsolete, unmerchantable, defective, used,
  unfit for sale, not salable at prices approximating at least the cost of such
  Inventory in the ordinary course of business or unacceptable due to age,
  type, category, quantity and/or (without double-counting) subject to
  management reservations;

  
	
   

  	
   

  
	
  (d)

  	
  which
  does not conform to all standards imposed by any Governmental Authority;

  
	
   

  	
   

  
	
  (e)

  	
  in
  which any Person other than such Loan Party shall (i) have any direct or
  indirect ownership, interest or title to such Inventory or (ii) be
  indicated on any purchase order or invoice with respect to such Inventory as
  having or purporting to have an interest therein (including the rights of a
  purchaser that has made progress payments and the rights of a surety that has
  issued a bond to assure the applicable Loan Party’s performance with respect
  to that Inventory);

  
	
   

  	
   

  
	
  (f)

  	
  which is not Finished
  Goods, Work-in-Process or Raw Materials, or which constitutes spare or
  replacement parts, subassemblies, packaging and shipping material,
  manufacturing supplies, samples, prototypes, displays or display items,
  bill-and-hold goods, goods that are returned or marked for return,
  repossessed goods, defective or damaged goods, goods held on consignment, or
  goods which are not of a type held for sale in the ordinary course of
  business;

  

 

22

 

	
  (g)

  	
  which
  is not located in the U.S. or is in transit with a common carrier from
  vendors and suppliers;

  
	
   

  	
   

  
	
  (h)

  	
  which
  (i) is located with a vendor, a customer of a Loan Party or its
  Affiliates or outside processor or on a property owned or leased by any of
  the foregoing, (ii) is not located on premises owned, leased or rented
  by a Loan Party unless in the case of leased or rented premises, either
  (x) a Third Party Agreement has been delivered to the Administrative
  Agent or (y) a Rent Reserve reasonably satisfactory to the
  Administrative Agent has been established with respect thereto, or
  (iii) is stored with a bailee at a leased location, unless, either
  (x) a Third Party Agreement has been delivered to the Administrative
  Agent, or (y) a Rent Reserve reasonably satisfactory to the
  Administrative Agent has been established with respect thereto, or
  (iv) is stored with a bailee or warehouseman, unless, either (x) a
  Third Party Agreement has been received by the Administrative Agent or
  (y) a Rent Reserve reasonably satisfactory to the Administrative Agent
  has been established with respect thereto, or (v) is located at an owned
  location subject to a mortgage or other security interest in favor of a
  creditor other than the Administrative Agent unless a Third Party Agreement has
  been delivered to the Administrative Agent;

  
	
   

  	
   

  
	
  (i)

  	
  is
  covered by a negotiable document of title or warehouse receipt unless all
  actions have been taken to create and perfect a first priority Lien in favor
  of the Administrative Agent in such document of title or warehouse receipt
  and the Inventory covered thereby, including, without limitation, the
  delivery to the Administrative Agent or an agent thereof of such document of
  title and warehouse receipt with all necessary endorsements;

  
	
   

  	
   

  
	
  (j)

  	
  which
  is being processed offsite at a third party location or outside processor, or
  is in-transit to or from such third party location or outside processor;

  
	
   

  	
   

  
	
  (k)

  	
  which
  is a discontinued product or component thereof;

  
	
   

  	
   

  
	
  (l)

  	
  which
  is the subject of a consignment by such Loan Party as consignor;

  
	
   

  	
   

  
	
  (m)

  	
  which
  contains or bears any intellectual property rights licensed to such Loan
  Party unless the Administrative Agent is satisfied that it may sell or
  otherwise dispose of such Inventory without (i) infringing the rights of
  such licensor, (ii) violating any contract with such licensor, or
  (iii) incurring any liability with respect to payment of royalties other
  than royalties incurred pursuant to sale of such Inventory under the current
  licensing agreement;

  
	
   

  	
   

  
	
  (n)

  	
  which
  is not reflected in a current perpetual inventory report of such Loan Party
  (unless such Inventory is reflected in a report to the Administrative Agent
  as “in transit” Inventory);

  
	
   

  	
   

  
	
  (o)

  	
  for which reclamation
  rights have been asserted by the seller;

  

 

23

 

	
  (p)

  	
  which
  consists of any gross profit mark-up in connection with the sale and
  distribution thereof to any division of any Loan Party or to any Affiliate of
  any Loan Party;

  
	
   

  	
   

  
	
  (q)

  	
  which
  consists of goods that have been returned or rejected by the buyer which are
  not resaleable as new;

  
	
   

  	
   

  
	
  (r)

  	
  which
  is subject to a down payment or security deposit;

  
	
   

  	
   

  
	
  (s)

  	
  which
  is not of a type held for sale in the ordinary course of any Loan Party’s
  business;

  
	
   

  	
   

  
	
  (t)

  	
  which
  is Commingled Inventory;

  
	
   

  	
   

  
	
  (u)

  	
  which
  is subject to a license agreement, a private label agreement or other similar
  arrangement with a third party which, in the Administrative Agent’s
  determination, restricts the ability of the Administrative Agent to exercise
  its rights under the Loan Documents with respect to such Inventory unless
  such third party has entered into an agreement in form and substance
  reasonably satisfactory to the Administrative Agent permitting the
  Administrative Agent to exercise its rights with respect to such Inventory or
  the Administrative Agent has otherwise agreed to allow such Inventory to be
  eligible in the Administrative Agent’s Permitted Discretion;

  
	
   

  	
   

  
	
  (v)

  	
  which
  is not covered by casualty insurance as required by the terms of this
  Agreement;

  
	
   

  	
   

  
	
  (w)

  	
  which
  consists of Hazardous Materials or goods that can be transported or sold only
  with licenses that are not readily available;

  
	
   

  	
   

  
	
  (x)

  	
  which
  (A) the value of which on the Inventory is reduced by any ledger reserve
  or (B) any capitalized variance to standard cost is maintained with
  respect thereto, but in each case, only to the extent of such reserve or
  variance which is in effect with respect thereto;

  
	
   

  	
   

  
	
  (y)

  	
  the
  manufacturing or distribution of which was not in material compliance with
  applicable law, including the FLSA; or

  
	
   

  	
   

  
	
  (z)

  	
  which consists of core
  (maintenance) inventory.

  

 

In the event that Inventory which was previously
Eligible Inventory ceases to be Eligible Inventory hereunder, such Loan Party
shall notify the Administrative Agent thereof on and at the time of submission
to the Administrative Agent of the next Borrowing Base Certificate.

 

“Enforcement Action” means, with respect to the
Obligations, any demand for payment or acceleration thereof, the exercise of
any rights and remedies with respect to any Collateral securing such
Obligations or the commencement or prosecution of 

 

24

 

enforcement of any of the
rights and remedies hereunder or under any other Loan Documents, or applicable
law, including without limitation the exercise of any rights of set-off or
recoupment, and the exercise of any rights or remedies of a secured creditor
under the Uniform Commercial Code of any applicable jurisdiction or under the
Bankruptcy Code.

 

“Enhanced Yield Letter Agreement” means the
letter agreement entered into between the Borrower and each of the Initial Last
Out Term Lenders dated on or about the date of this Agreement.

 

“Environmental Action” means any action, suit,
demand, demand letter, claim, notice of non compliance or violation, notice of
liability or potential liability, investigation, proceeding, consent order or
consent agreement relating in any way to any Environmental Law, any
Environmental Permit or Hazardous Material or arising from alleged injury or
threat to health, safety or the environment, including, without limitation, (a) by
any governmental or regulatory authority for enforcement, cleanup, removal,
response, remedial or other actions or damages and (b) by any governmental
or regulatory authority or third party for damages, contribution,
indemnification, cost recovery, compensation or injunctive relief.

 

“Environmental Law” means any federal, state,
local or foreign statute, law, ordinance, rule, regulation, code, order, writ,
judgment, injunction, decree or judicial or agency interpretation, policy or
guidance relating to pollution or protection of the environment, health, safety
or natural resources, including, without limitation, those relating to the use,
handling, transportation, treatment, storage, disposal, release or discharge of
Hazardous Materials.

 

“Environmental Permit” means any permit,
approval, identification number, license or other authorization required under
any Environmental Law.

 

“Equity Interests” means, with respect to any
Person, shares of capital stock of (or other ownership or profit interests in)
such Person, warrants, options or other rights for the purchase or other
acquisition from such Person of shares of capital stock of (or other ownership
or profit interests in) such Person, securities convertible into or
exchangeable for shares of capital stock of (or other ownership or profit
interests in) such Person or warrants, rights or options for the purchase or
other acquisition from such Person of such shares (or such other interests),
and other ownership or profit interests in such Person (including, without
limitation, partnership, member or trust interests therein), whether voting or
nonvoting, and whether or not such shares, warrants, options, rights or other
interests are authorized or otherwise existing on any date of determination.

 

“ERISA” means 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.

 

25

 

“ERISA Affiliate” means each person (as defined
in Section 3(9) of ERISA) that together with any Loan Party would be
deemed to be a “single employer” within the meaning of Section 414(b) or
(c) of the Internal Revenue Code or, solely for purposes of Section 302
of ERISA and Section 412 of the Internal Revenue Code, is treated as a
single employer under Section 414 of the Internal Revenue Code.

 

“Eurocurrency Liabilities” has the meaning
specified in Regulation D of the Board of Governors of the Federal Reserve
System, as in effect from time to time.

 

“Eurodollar Rate” means, for any Interest
Period for all Eurodollar Rate Advances comprising part of the same Borrowing,
an interest rate per annum equal to the rate per annum obtained by dividing (a) the
rate per annum (rounded upward to the nearest whole multiple of 1/16 of 1% per
annum) at which deposits in U.S. Dollars are offered by the principal office of
the Administrative Agent in London, England to first-class banks in the London
interbank market at 11:00 A.M. (London time) for U.S. Dollar deposits of
amounts in immediately available funds comparable to the outstanding principal
amount of the Eurodollar Rate Advance of the Administrative Agent (in its
capacity as a Lender) (or, if the Administrative Agent is not a Lender with
respect thereto, taking the average principal amount of the Eurodollar Rate
Advance then being made by the various Lenders pursuant thereto) with
maturities comparable to the Interest Period applicable to such Eurodollar Rate
Advance commencing two Business Days thereafter as of 10:00 A.M. (New York
City time) on the applicable Interest Determination Date by (b) a
percentage equal to 100% minus the Eurodollar Rate Reserve Percentage for such
Interest Period.  The Eurodollar Rate for
any Interest Period for each Eurodollar Rate Advance comprising part of the same
Borrowing shall be determined by the Administrative Agent, subject, however,
to the provisions of Section 2.07. 
Notwithstanding the foregoing, the Eurodollar Rate shall not be less
than 2.50% per annum.

 

“Eurodollar Rate Advance” means an Advance (other
than a Swingline Advance) that bears interest as provided in Section 2.07(a)(ii).

 

“Eurodollar Rate Reserve Percentage” for any
Interest Period for all Eurodollar Rate Advances comprising part of the same
Borrowing means the reserve percentage applicable two Business Days before the
first day of such Interest Period under regulations issued from time to time by
the Board of Governors of the Federal Reserve System (or any successor) for
determining the maximum reserve requirement (including, without limitation, any
emergency, supplemental or other marginal reserve requirement) for a member
bank of the Federal Reserve System in New York City with respect to liabilities
or assets consisting of or including Eurocurrency Liabilities (or with respect
to any other category of liabilities that includes deposits by reference to
which the interest rate on Eurodollar Rate Advances is determined) having a
term equal to such Interest Period.

 

“Events of Default” has the meaning specified
in Section 6.01.

 

“Excess Availability” shall mean, as of any
date of determination, the remainder of (a) the lesser of (i) the
Borrowing Base at such time and (ii) the Total Revolving Credit 

 

26

 

Commitment at such time
minus any Specified Reserve, minus (b) the Aggregate Exposure at
such time.

 

“Excluded Accounts” shall mean (w) Disbursement
Accounts established solely for (i) payroll, (ii) tax payments, (iii) employee
benefit programs or (iv) payment of medical and dental expenses in connection
with health insurance programs for employees of the Borrower and the other Loan
Parties, (x) petty cash accounts established (or otherwise maintained) by
the Loan Parties that do not have cash balances at any time exceeding $50,000
in the aggregate for all such petty cash accounts, (y) fiduciary accounts
and (z) trust accounts; provided that in no event shall Excluded
Accounts include any Cash Collateral Accounts, Disbursement Accounts (other
than those included in (w) above), Core Concentration Accounts, Lockbox
Accounts or any other account pursuant to which a Cash Management Control
Agreement or any other account control agreement has been executed and
delivered to the Administrative Agent pursuant to this Agreement or any
Collateral Document.

 

“Executive Order” has the meaning set forth in
the definition of “Anti-Terrorism Laws.”

 

“Extended Termination Date” means, if the
extension option is exercised in accordance with Section 2.19 and the
Borrower has paid the Extension Fee, the date that is 12 months after the
Closing Date.

 

“Extension Effective Date” has the meaning
specified in Section 2.19.

 

“Extension Fee” means 1.00% of the sum of the
Total Revolving Credit Commitment outstanding, as of the Extension Effective
Date.

 

“Federal Funds Rate” means, for any period, a
fluctuating interest rate per annum equal for each day during such period to
the weighted average of the rates on overnight Federal funds transactions with
members of the Federal Reserve System arranged by Federal funds brokers, as published
for such day (or, if such day is not a Business Day, for the next preceding
Business Day) by the Federal Reserve Bank of New York, or, if such rate is not
so published for any day that is a Business Day, the average of the quotations
for such day for such transactions received by the Administrative Agent from
three Federal funds brokers of recognized standing selected by it.

 

“Fee Letters” means the letter agreements dated
as of the date of this Agreement, by and among the Lead Arranger, the Administrative
Agent, the Initial Revolving Credit Lenders and the Borrower.

 

“Final Borrowing Order” shall mean,
collectively, the order of the Bankruptcy Court entered in the Chapter 11 Cases
after a final hearing under Bankruptcy Rule 4001(c)(2) or such other
procedures as approved by the Bankruptcy Court, which order shall be reasonably
satisfactory in form and substance to the Instructing Group and the Last Out
Requisite Lenders, together with all extensions, modifications and amendments
thereto, in form and substance reasonably satisfactory to the Instructing Group
and the Last Out Requisite Lenders, and which, among other matters but not by
way of 

 

27

 

limitation, authorizes
the U.S. Debtors to obtain credit, incur (or guaranty) Debt, and grant Liens
under (or in respect of) this Agreement and the other Loan Documents, as the
case may be, and provides for the superpriority of the Administrative Agent’s
and the Lenders’ claims hereunder and under the other Loan Documents.

 

“Final Borrowing Order Entry Date” shall mean
the date on or after the Closing Date on which the Final Borrowing Order is
entered by the Bankruptcy Court.

 

“Final Order” shall mean an order, judgment or
other decree of the Bankruptcy Court or any other court or judicial body with
proper jurisdiction, as the case may be, which is in full force and effect and
which has not been reversed, stayed, modified or amended and as to which (i) any
right to appeal or seek certiorari, review or rehearing has been waived or (ii) the
time to appeal or seek certiorari, review or rehearing has expired and as to
which no appeal or petition for certiorari, review or rehearing is pending.

 

“Finished Goods” shall mean completed goods
which require no additional processing or manufacturing to be sold to third
party customers by the Loan Parties in the ordinary course of business.

 

“First Day Orders” shall mean those orders
entered by the Bankruptcy Court as a result of motions and applications filed
by the U.S. Debtors with the Bankruptcy Court on the Petition Date, in each
case in form and substance reasonably satisfactory to, and as approved by, the
Administrative Agent pursuant to Section 3.01(m).

 

“First Out Advances” means all Advances other
than the Last Out Term Advances.

 

“First Out Final Payment Date” means the first
date on which the First Out Obligations (other than Unmatured Surviving
Obligations) shall have been paid in full in cash, any outstanding Letters of
Credit shall have been cash collateralized to the satisfaction of the
Administrative Agent and each Issuing Bank and the Revolving Credit Commitments
shall have been terminated in full.

 

“First Out Lender” means any Lender, other than
the Last Out Term Lenders in their capacity as such, that is owed a First Out
Advance.

 

“First Out Lender Party” means any Lender
Party, other than the Last Out Term Lenders in their capacity as such.

 

“First Out Obligations” means all Obligations
under the Loan Documents that are owed by the Loan Parties to (a) the
Administrative Agent or (b) any First Out Lender Party and all Cash
Management Obligations under the Secured Cash Management Agreements that are
owed by the Loan Parties to the Cash Management Creditors.

 

“Fiscal Quarter” means any fiscal quarter of
the Borrower and its Consolidated Subsidiaries that occurs within any Fiscal
Year.

 

28

 

“Fiscal Year”
means a fiscal year of the Borrower and its Consolidated Subsidiaries ending on
December 31 in any calendar year.

 

“FLSA” means the
Fair Labor Standards Act of 1938.

 

“Foreign Government
Scheme or Arrangement” has the meaning specified in Section 4.01(m)(ii).

 

“Foreign Plan” has
the meaning specified in Section 4.01(m)(ii).

 

“Foreign Subsidiary”
means any Subsidiary of the Borrower which is a corporation organized under the
laws of any jurisdiction other than the United States or any state thereof.

 

“Fourth Amendment and
Canadian Forbearance Agreement” has the meaning specified in Preliminary
Statement (3).

 

“GAAP” has the
meaning specified in Section 1.03.

 

“Governmental
Authority” shall mean the government of the United States of America, any
other nation or any political subdivision thereof, whether state, provincial or
local, and any agency, authority, instrumentality, regulatory body, court,
central bank or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative powers or functions of or pertaining to
government.

 

“Guarantee and
Collateral Agreement” means the Guarantee and Collateral Agreement to be
executed and delivered by the Borrower and each Subsidiary Guarantor,
substantially in the form of Exhibit I, as such agreement may be amended,
supplemented or otherwise modified from time to time.

 

“Hazardous Materials”
means (a) petroleum or petroleum products, by-products or breakdown
products, radioactive materials, asbestos-containing materials, polychlorinated
biphenyls and radon gas and (b) any other chemicals, materials or
substances designated, classified or regulated as hazardous or toxic or as a
pollutant or contaminant under any Environmental Law.

 

“Hedge Agreements”
means interest rate swap, cap or collar agreements, interest rate future or
option contracts, currency swap agreements, currency future or option
contracts, commodities future or option contracts for materials used in the
ordinary course of business and other similar agreements.

 

“Indemnified Party”
has the meaning specified in Section 8.04(b).

 

“Individual Exposure”
of any Revolving Credit Lender means, at any time, the sum of (a) the
aggregate principal amount of all Revolving Credit Advances made by such
Revolving Credit Lender and then outstanding, (b) such Revolving Credit
Lender’s Pro Rata Share in the aggregate amount of all Swingline Advances
outstanding at such 

 

29

 

time and (c) such
Revolving Credit Lender’s Pro Rata Share in the aggregate amount of all Letter
of Credit Outstandings at such time.

 

“Initial Borrowing
Base Certificate” means a certificate showing the calculation of the
Borrowing Base as of August 31, 2009, together with all attachments and
supporting documentation in form and substance reasonably satisfactory to the
Instructing Group and certified as true, correct and complete in all material
respects by a Responsible Officer of the Borrower.

 

“Initial DIP Forecast”
has the meaning specified in Section 5.03(d).

 

“Initial Issuing Bank”
has the meaning specified in the recital of parties to this Agreement.

 

“Initial Last Out Term
Lenders” has the meaning specified in the recital of parties to this
Agreement.

 

“Initial Lenders”
means the Initial Last Out Term Lenders and the Initial Revolving Credit
Lenders.

 

“Initial Revolving
Credit Lenders” has the meaning specified in the recital of parties to this
Agreement.

 

“Insolvency Proceeding”
has the meaning specified in Section 2.20(o)(i).

 

“Instructing Group”
means DBTCA, Eaton Vance Management and General Electric Capital Corporation; provided
that if any such person ceases to be a Lender Party hereunder, such person
shall cease to be, and no successor or assignee thereof shall become, a member
of the Instructing Group.

 

“Instrument” means
“instrument” as such term is defined in Article 9 of the UCC.

 

“Interest
Determination Date” means, with respect to any Eurodollar Rate Advance, the
second Business Day prior to the commencement of any Interest Period relating
to such Eurodollar Rate Advance.

 

“Interest Payment Date”
shall mean, with respect to any Advance (subject, in the case of any Last Out
Term Advance, to Section 2.20), (a) the last day of each Interest
Period applicable to the Borrowing of which such Advance is a part, and, in
addition, the date of any continuation or Conversion of such Advance with or to
an Advance of a different Type, (b) at maturity (whether by acceleration
or otherwise), (c) after such maturity, on demand and (d) with
respect to any Revolving Credit Advance, the date of termination and
cancellation of the Revolving Credit Commitments in their entirety.

 

“Interest Period”
means, for each Eurodollar Rate Advance comprising part of the same Borrowing
to the Borrower, the period commencing on the date of such Eurodollar Rate
Advance, the date of the Conversion of any Base Rate Advance into such
Eurodollar Rate Advance or the last day of the immediately preceding Interest
Period and ending on 

 

30

 

the numerically
corresponding day (or, if there is no numerically corresponding day, on the
last day) in the calendar month that is one (1) month thereafter; provided
that whenever the last day of any Interest Period would otherwise occur on a
day other than a Business Day, the last day of such Interest Period shall be
extended to occur on the next succeeding Business Day; provided, however,
that, if such extension would cause the last day of such Interest Period to
occur in the next following calendar month, the last day of such Interest
Period shall occur on the next preceding Business Day.

 

“Interim Borrowing
Order” means collectively, the order of the Bankruptcy Court entered in the
Chapter 11 Cases after an interim hearing, together with all extensions, modifications
and amendments thereto, in form and substance reasonably satisfactory to the
Instructing Group and the Last Out Requisite Lenders, which, among other
matters but not by way of limitation, authorizes, on an interim basis, the
Borrower and Subsidiary Guarantors to execute and perform under the terms of
this Agreement and the other Loan Documents and incur (and guarantee) and
secure the Advances, Letters of Credit and other Obligations in connection
therewith, which order shall be in form and substance satisfactory to the
Instructing Group and the Last Out Requisite Lenders, and which shall be deemed
satisfactory to each of the Instructing Group and each Last Out Term Lender if
such order is substantially in the form of Exhibit H.

 

“Interim Borrowing Order
Entry Date” means
[                  ].

 

“Interim Initial DIP
Forecast” has the meaning specified in Section 5.03(d).

 

“Internal Revenue Code”
means the Internal Revenue Code of 1986, as amended from time to time, and the
regulations promulgated and rulings issued thereunder.

 

“Inventory” means
“inventory” as such term is defined in Article 9 of the UCC.

 

“Inventory Formula
Amount” means, on any date of determination for Eligible Inventory, the
lesser of (i) 65% of the Value of the Loan Parties’ Eligible Inventory;
and (ii) 85% of the sum of the Net Orderly Liquidation Values of the
Eligible Inventory by category.

 

“Inventory Reserve”
means reserves established by the Administrative Agent in its commercially
reasonable credit judgment from time to time to reflect factors that may
negatively impact the Value of Inventory of the Borrower and the Subsidiary
Guarantors, including:

 

(a)          any book reserves maintained by the Borrower in
respect of Eligible Inventory (excluding a LIFO reserve under GAAP);

 

(b)         any change in salability, obsolescence, seasonality,
theft, shrinkage, imbalance, change in composition or mix, markdowns and vendor
chargebacks;

 

(c)          discrepancies that arise pertaining to inventory
quantities on hand between a Loan Party’s perpetual accounting system, and
physical counts of the 

 

31

 

inventory which will be
equal to the greater of 2% or the results of the physical inventory counts
taken over the past 12 months with the variance expressed as a percentage of
Inventory;

 

(d)         discontinuance or speed of turnover;

 

(e)          designation for return to vendor

 

(f)            damage, quality or failure to meet customer
specifications;

 

(g)         revaluation for deduction of capitalized favorable
variances;

 

(h)         exclusion of revaluation for addition of unfavorable
variances; and

 

(i)             to reflect differences between a Loan Party’s actual
cost to produce versus its selling price to third parties, determined on a
product line basis.

 

“Investment” in
any Person means any loan or advance to such Person, any purchase or other
acquisition of any capital stock or other ownership or profit interest,
warrants, rights, options, obligations or other securities of such Person, any
capital contribution to such Person or any other investment in such Person,
including, without limitation, any arrangement pursuant to which the investor
incurs Debt of the types referred to in clause (h) or (i) of the
definition of “Debt” in respect of such Person.

 

“Issuing Bank”
means the Initial Issuing Bank and any other Lender reasonably acceptable to
the Administrative Agent and the Borrower that agrees to issue Letters of
Credit hereunder.  Any Issuing Bank may,
in its discretion, arrange for one or more Letters of Credit to be issued by
one or more Affiliates of such Issuing Bank (and such Affiliate shall be deemed
to be an “Issuing Bank” for all purposes of the Loan Documents).

 

“Last Out Obligations”
means all Obligations under the Loan Documents that are owed by the Loan
Parties to the Last Out Term Lenders, in their capacity as such.

 

“Last Out Requisite
Lenders” means, at any time, Last Out Term Lenders owed or holding at least
a majority in interest of the sum of (a) the aggregate principal amount of
the Last Out Term Advances outstanding at such time and (b) the aggregate
unused Last Out Term Commitments at such time; provided, however,
that if any Last Out Term Lender shall be a Defaulting Lender at such time,
there shall be excluded from the determination of Last Out Requisite Lenders at
such time the aggregate principal amount of the Last Out Term Advances owing to
such Last Out Term Lender.

 

“Last Out Term Advance”
has the meaning specified in Section 2.01(a).

 

“Last Out Term
Borrowing” means a borrowing consisting of simultaneous Last Out Term
Advances of the same Type made by the Last Out Term Lenders.

 

32

 

“Last Out Term
Commitment” means, with respect to any Last Out Term Lender at any time,
the amount set forth opposite such Lender’s name on Schedule I hereto under the
caption “Last Out Term Commitment” or, if such Lender has entered into
one or more Assignments and Acceptances, set forth for such Lender in the
Register maintained by the Administrative Agent pursuant to Section 8.07(d) as
such Lender’s “Last Out Term Commitment”.

 

“Last Out Term
Facility” has the meaning specified in Preliminary Statement (4).

 

“Last Out Term Lender”
means any Lender that has a Last Out Term Commitment or that is owed or holds a
Last Out Term Advance.

 

“Last Out Term Note”
means a promissory note of the Borrower payable to the order of any Last Out
Term Lender, in substantially the form of Exhibit A3 hereto, evidencing
the indebtedness of the Borrower to such Lender resulting from the Last Out
Term Advance made by such Lender.

 

“L/C Supportable
Obligations” shall mean (i) obligations of the Borrower or any of its
Subsidiaries with respect to workers compensation, surety bonds and other
similar statutory obligations and (ii) such other obligations of the
Borrower or any of its Subsidiaries as are reasonably acceptable to the
respective Issuing Bank and otherwise permitted to exist pursuant to the terms
of this Agreement (other than obligations in respect of (w) Prepetition
Obligations outstanding under the Prepetition Credit Agreement, (x) the
Senior Subordinated Notes, (y) any other Debt or other obligations that
are subordinated in right of payment to the Obligations and (z) any Equity
Interests).

 

“Lead Arranger”
has the meaning specified in the recital of parties to this Agreement.

 

“Leases” has the
meaning specified in Section 4.01(u).

 

“Lender Party”
means any Lender, the Swingline Bank and each Issuing Bank.

 

“Lenders” means
the Initial Lenders and each Person that shall become a Lender hereunder
pursuant to Section 8.07.

 

“Lending Office”
means, with respect to any Lender Party, the office of such Lender Party
specified as its “Lending Office” opposite its name on Schedule I hereto or in
the Assignment and Acceptance pursuant to which it became a Lender Party, as
the case may be, or such other office of such Lender Party as such Lender Party
may from time to time specify to the Borrower and the Administrative Agent.

 

“Letter of Credit”
has the meaning specified in Section 2.03(a)(i).

 

“Letter of Credit
Advance” means an advance made by an Issuing Bank pursuant to Section 2.03(e)(i).

 

33

 

“Letter of Credit
Back-Stop Arrangements” has the meaning specified in Section 2.15(d).

 

“Letter of Credit
Disbursement” has the meaning specified in Section 2.03(e)(ii).

 

“Letter of Credit
Outstandings” shall mean, at any time, the sum of (i) the Available LC
Amount of all outstanding Letters of Credit at such time and (ii) the
aggregate amount of all Letter of Credit Advances at such time.

 

“Letter of Credit
Request” has the meaning specified in Section 2.03(c)(i).

 

“Letter of Credit
Sub-Limit” means $5,000,000.

 

“Lien” means any
lien, security interest or other charge or encumbrance of any kind, or any
other type of preferential arrangement, including, without limitation, any
agreement to give any of the foregoing, any lien or retained security title of
a conditional vendor and any easement, right of way or other encumbrance on
title to real property.

 

“Liquidity” means,
as of any date of determination, an amount equal to the sum of (a) cash
and Cash Equivalents held by (i) any Loan Party in (A) any Cash
Collateral Account or (B) any other Deposit Account in the United States
subject to a Cash Management Control Agreement or over which the Orders grant a
perfected Lien in favor of the Secured Parties or (ii) any Mexican
Subsidiary, but only up to a maximum amount of $2,500,000, plus (b) the
Unused Revolving Credit Commitments available to be drawn on such date by the
Borrower, as reduced by any amount required to satisfy the applicable
conditions precedent to any extension of credit, tested as of such date, provided
that until the condition on availability set forth in Section 3.02(b) is
satisfied, the availability block in Section 3.02(b) shall be
disregarded when calculating the amount of the Unused Revolving Credit
Commitments for the purposes of calculating Liquidity; provided  further
that amounts held in Excluded Accounts or amounts pledged on a first priority
basis to Persons other than the Secured Parties or that are secured by Senior
Third Party Liens shall be excluded in calculating Liquidity.

 

“Loan Documents”
means (i) this Agreement, (ii) the Notes, (iii) the Collateral
Documents, (iv) the Interim Borrowing Order or (when entered) the Final
Borrowing Order (v) after the execution and delivery thereof pursuant to
the terms of this Agreement, each Note and each additional Collateral Document
and (vi) each other document, instrument or agreement designated as a
“Loan Document” by the Administrative Agent and the Borrower, in each case as
amended, supplemented or otherwise modified from time to time.

 

“Loan Parties”
means the Borrower and the Subsidiary Guarantors.

 

“Lockbox Account”
shall mean each U.S. Deposit Account established at a Collection Bank subject
to a Cash Management Control Agreement into which funds shall be transferred as
provided in Section 5.01(r)(i).

 

34

 

“Majority Lenders”
means (A) at any time prior to the occurrence of the First Out Final
Payment Date, Revolving Credit Lenders owed or holding at least a majority in
interest of the sum of (a) the aggregate principal amount of the Revolving
Credit Advances (other than Swingline Advances) outstanding at such time, (b) the
aggregate principal amount of the Swingline Advances outstanding at such time, (c) the
aggregate Available LC Amount of all Letters of Credit outstanding at such time
and (d) the aggregate Unused Revolving Credit Commitments at such time; provided,
however, that if any Revolving Credit Lender shall be a Defaulting
Lender at such time, there shall be excluded from the determination of Majority
Lenders at such time (i) the aggregate principal amount of the Revolving
Credit Advances (other than Swingline Advances) owing to such Revolving Credit
Lender and outstanding at such time, (ii) such Revolving Credit Lender’s
Pro Rata Share of the aggregate principal amount of the Swingline Advances
outstanding at such time, (iii) such Revolving Credit Lender’s Pro Rata Share
of the aggregate Available LC Amount of all Letters of Credit issued and
outstanding at such time, and (iv) the Unused Revolving Credit Commitment
of such Revolving Credit Lender at such time, and (B) at any time
following the occurrence of the First Out Final Payment Date, the Last Out
Requisite Lenders.  For purposes of this
definition prior to the occurrence of the First Out Final Payment Date, the
aggregate principal amount of Swingline Advances owing to the Swingline Bank
and the aggregate principal amount of Letter of Credit Advances owing to each
Issuing Bank and the Available LC Amount of each Letter of Credit shall, in
each case, be considered to be owed to the Revolving Credit Lenders ratably in
accordance with their respective Revolving Credit Commitments.

 

“Margin Stock” has
the meaning specified in Regulation U.

 

“Mandatory Borrowing”
shall have the meaning provided in Section 2.02(c).

 

“Material Adverse
Effect” means a material adverse effect on (a) the business, financial
condition, operations, assets or liabilities of any Loan Party or any of its
Subsidiaries, (b) the rights and remedies of the Administrative Agent or
any Lender Party under any Loan Document or Related Document or (c) the
ability of any Loan Party to perform its Obligations under any Loan Document or
Related Document to which it is or is to be a party (it being understood and
agreed that a Material Adverse Effect will not be deemed to exist as a result
of the filing of the Chapter 11 Cases, or the Effects of Bankruptcy or the
circumstances or events leading up thereto).

 

“Mexican Subsidiary”
means any company organized and existing under the laws of Mexico that is a
Subsidiary.

 

“Milestone Termination
Date” means, for the purposes of the Fourth Amendment and Canadian Forbearance
Agreement, the earliest to occur of any of the following:

 

(a)           any failure to comply with Section 5.01(q);

 

(b)           any failure to comply with Section 5.02(h);

 

(c)           any failure to comply with Section 5.02(m);

 

35

 

(d)           the occurrence of a Default under Section 6.01(n);
or

 

(e)           the occurrence of a Default under Section 6.01(j).

 

“Minimum Net Cash Flow
Schedule” means the schedule attached hereto as Schedule 5.04(a), in form
and substance satisfactory to the Instructing Group, provided by the Borrower
to the Administrative Agent on the Closing Date, as amended or updated by the
Borrower with the approval of the Instructing Group and pursuant to Section 5.04(a).

 

“Moody’s” has the
meaning specified in the definition of “Cash Equivalents” in this Section 1.01.

 

“NAIC” means the
National Association of Insurance Commissioners.

 

“Net Cash Flow”
means, for any period, the sum of the line items entitled “Net Cash Flow” for
each week that is included in such period, as set forth in the most recent
Variance Report delivered to the Administrative Agent in accordance with Section 5.03(g).

 

“Net Cash Proceeds”
means, with respect to any sale, lease, transfer or other disposition of any
asset or any Recovery Event, the aggregate amount of cash received from time to
time (whether as initial consideration or through payment or disposition of
deferred consideration, but only as and when received)) by or on behalf of such
Person in connection with such transaction or event after deducting therefrom
only (without duplication):

 

(a)           reasonable and customary fees,
commissions, expenses, issuance costs, discounts and other costs paid by the
Borrower or any of its Subsidiaries in connection with such transaction or
event;

 

(b)           the amount of taxes paid or estimated
to be payable in connection with or as a result of such transaction or event;

 

(c)           the amount of the outstanding
principal amount of, premium or penalty, if any, and interest on any Debt
(other than pursuant to the Facilities) that is secured by a Lien on the stock
or assets in question and that is required to be repaid under the terms thereof
as a result of any such transaction or event;

 

(d)           the amount of any reasonable reserves
established in accordance with GAAP against any liabilities (other than taxes
described in clause (b) above) that are (i) associated with the
assets that are the subject of such transaction or event and (ii) retained
by the Borrower or any of its Subsidiaries,

 

provided, however, that in the event the
amount of any estimated tax payable described in clause (b) above exceeds
the amount actually paid, or upon any subsequent reduction in the amount of any
reserve described in clause (d) above, the Borrower or its applicable
Subsidiary shall be deemed to have received Net Cash Proceeds in an amount 

 

36

 

equal to such
excess or reduction, at the time of payment of such taxes or on the date of
such reduction, as the case may be.

 

“Net Orderly
Liquidation Value” means the “net orderly liquidation value”
determined separately for raw materials, work-in-process and finished goods
Inventory by an unaffiliated valuation company acceptable to the Administrative
Agent after performance of an inventory valuation to be done at the
Administrative Agent’s request and the Borrower’s expense, less the amount
estimated by such valuation company for marshalling, reconditioning, carrying,
and sales expenses designated to maximize the resale value of such Inventory on
an “as is” basis and assuming that the time required to dispose of such
Inventory is customary with respect to such Inventory and expressed as a
percentage of the net book value of such raw materials, work-in-process and
finished goods Inventory.

 

“Non-Binding Restructuring
Term Sheet” means the non-binding restructuring term sheet attached as Exhibit A
to the Noteholder New Capital Commitment Agreement, as further amended,
supplemented, modified or waived from time to time.

 

“Note” means a
Revolving Credit Note, a Last Out Term Note or a Swingline Note.

 

“Noteholder
Restructuring Support Lockup Agreement” means the Restructuring Support
Agreement dated as of October 7, 2009 by and among the Borrower and
certain holders of the Senior Subordinated Notes, as further amended,
supplemented, modified or waived from time to time.

 

“Noteholder New
Capital Commitment Agreement” means the Convertible Notes Commitment
Agreement dated as of October 7, 2009, entered into by the Borrower and
Blackrock Financial Management, Inc., Brigade Capital Management, LLC,
Canyon Capital Advisors LLC, Sankaty Advisors, LLC and Tinicum Capital Partners
II, LP, (the “Backstop Commitment Providers” pursuant to which the
Backstop Commitment Providers will underwrite, on the terms and subject to the
conditions set out therein and in the Noteholder New Capital Term Sheet, the
issuance by the Borrower of 7.5% convertible notes due 2019 in an aggregate
principal amount of $140,000,000, to be issued on the effective date of an
Approved Plan, as further amended, supplemented, modified or waived from time
to time.

 

“Noteholder New
Capital Term Sheet” means the new capital term sheet attached as Exhibit A
to the Noteholder New Capital Commitment Agreement, as further amended,
supplemented, modified or waived from time to time.

 

“Notice of Last Out
Term Borrowing” has the meaning specified in Section 2.02(a).

 

“Notice of Revolving
Credit Borrowing” has the meaning specified in Section 2.02(b).

 

“Notice of Swingline
Borrowing” has the meaning specified in Section 2.02(c)

 

37

 

“NPL” means the
National Priorities List under CERCLA.

 

“Obligation”
means, with respect to any Person, any payment, performance or other obligation
of such Person of any kind, including, without limitation, any liability of
such Person on any claim, whether or not the right of any creditor to payment
in respect of such claim is reduced to judgment, liquidated, unliquidated,
fixed, contingent, matured, disputed, undisputed, legal, equitable, secured or
unsecured. Without limiting the generality of the foregoing, the Obligations of
the Loan Parties under the Loan Documents include (a) the unpaid principal
of and interest on the Advances, reimbursement obligations in respect of
Swingline Advances, Letters of Credit, Letter of Credit commissions, charges,
expenses, fees, attorneys’ fees and disbursements, indemnities and other
amounts payable by any Loan Party under any Loan Document (including, without
limitation, interest accruing at the then applicable rate provided herein after
the maturity of the Advances and reimbursement obligations in respect of
Swingline Advances and Letter of Credit Advances and Letters of Credit) to the
Administrative Agent or any Lender Party, whether direct or indirect, absolute
or contingent, due or to become due, or now existing or hereafter incurred,
which may arise under, out of, or in connection with, this Agreement, the other
Loan Documents, any Letter of Credit or any other document made, delivered or
given in connection with any of the foregoing, in each case whether on account
of principal, interest, reimbursement obligations, fees, indemnities, costs,
expenses or otherwise (including, without limitation, all fees and
disbursements of counsel to the Administrative Agent or to the Lender Parties
that are required to be paid by the Borrower pursuant to the terms of any of
the foregoing agreements) and (b) the obligation of any Loan Party to
reimburse any amount in respect of any of the foregoing that any Lender Party,
in its sole discretion, may elect to pay or advance on behalf of such Loan
Party.

 

“OFAC” has the
meaning set forth in the definition of “Anti-Terrorism Laws.”

 

“Off-Balance Sheet
Liabilities” of any Person shall mean (i) any repurchase obligation or
liability of such Person with respect to accounts or notes receivable sold by
such Person, (ii) any liability of such Person under any sale and
leaseback transactions that do not create a liability on the balance sheet of
such Person, (iii) any obligation under a Synthetic Lease or (iv) any
obligation arising with respect to any other transaction which is the
functional equivalent of or takes the place of borrowing but which does not
constitute a liability on the balance sheet of such Person.

 

“Orders” means the
Interim Borrowing Order and the Final Borrowing Order.

 

“Original Termination
Date” means the date that is nine (9) months after the Closing Date.

 

“Other Taxes” has
the meaning specified in Section 2.12(b).

 

“Participant” has
the meaning specified in Section 2.03(d)(i).

 

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

 

38

 

“Permitted Discretion” means the exercise of
the Administrative Agent’s good faith judgment (from the perspective of a
secured asset-based lender) in consideration of any factor which will or is
reasonably likely to (i) adversely affect the value of any Collateral, the
enforceability or priority of the Liens thereon or the amount that the
Administrative Agent and the Revolving Credit Lenders would be likely to
receive (after giving consideration to delays in payment and costs of
enforcement) in the liquidation thereof, (ii) suggest that any collateral
report or financial information delivered to the Administrative Agent or the
Revolving Credit Lenders by any Person on behalf of the Borrower or any other
Loan Party is incomplete, inaccurate or misleading in any material respect, (iii) materially
increase the likelihood that the Revolving Credit Lenders would not receive
payment in full in cash for all of the Obligations or (iv) otherwise
materially adversely affect the interests of the Secured Parties.  In exercising such judgment, the
Administrative Agent may consider such factors already included in or tested by
the definition of Eligible Accounts or Eligible Inventory, as well as any of
the following:  (i) the changes in
collection history and Dilution or collectability with respect to the Accounts;
(ii) changes in demand for, pricing of, or product mix of Inventory; (iii) changes
in any concentration of risk with respect to the respective Loan Party’s
Accounts or Inventory; and (iv) any other factors that change the credit
risk of lending to the Borrower on the security of any Loan Party’s Accounts or
Inventory.  The burden of establishing
lack of good faith hereunder shall be on the Borrower.

 

“Permitted Investors” means Sun Capital
Securities Group LLC, Sun Capital Partners V, L.P. and their affiliates.

 

“Permitted Liens” means such of the following
as to which no enforcement, collection, execution, levy or foreclosure
proceeding shall have been commenced:  (a) Liens
for taxes, assessments and governmental charges or levies to the extent not
required to be paid under Section 5.01(b) hereof; (b) Liens
imposed by law, such as materialmen’s, mechanics’, carriers’, workmen’s and
repairmen’s Liens and other similar Liens arising in the ordinary course of
business outstanding at any time and securing indebtedness that is not overdue
for a period of more than 30 days; (c) Liens arising from judgments or
decrees in circumstances not constituting an Event of Default under Section 6.01(g);
(d) Liens incurred or deposits made in connection with workers’
compensation, unemployment insurance and other types of social security, or to
secure the performance of tenders, statutory obligations, surety and appeal
bonds, bids, leases, government contracts, performance and return-of-money
bonds and other similar obligations incurred in the ordinary course of
business; (e) ground leases in respect of real property on which
facilities owned or leased by the Borrower or any of its Subsidiaries are
located; (f) easements, rights-of-way, restrictions, minor defects or
irregularities in title and other similar charges or encumbrances not
interfering in any material respect with the business of the Borrower and its
Subsidiaries taken as a whole; (g) any interest or title of a lessor or
secured by a lessor’s interest under any lease permitted by this Agreement and
any Liens arising from any financing statement filed in connection with such
lease; (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 the purchase price of which is
financed by a documentary letter of credit issued for the account of the
Borrower or any of its Subsidiaries; provided that such Lien secures
only 

 

39

 

the obligations of the
Borrower or such Subsidiaries in respect of such letter of credit to the extent
permitted under Section 5.02(b); and (j) leases or subleases granted
to others not interfering in any material respect with the business of the
Borrower and its Subsidiaries, taken as a whole.

 

“Person” means an individual, partnership,
corporation (including a business trust), limited liability company, joint
stock company, trust, unincorporated association, joint venture or other
entity, or a government or any political subdivision or agency thereof.

 

“Petition Date” has the meaning specified in
Preliminary Statement (1).

 

“Plan” means 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 of) any Loan Party or an ERISA Affiliate.

 

“Pledged Stock” means, at any time, any
promissory notes, stock certificates or other securities now or hereafter
included in the Collateral, including all certificates, instruments or other
documents representing or evidencing any such Collateral.

 

“Post Petition” means the time period beginning
immediately upon the filing of the Chapter 11 Cases.

 

“Prepetition” means the time period prior to
the filing of the Chapter 11 Cases.

 

“Prepetition Administrative Agent” means the
“Administrative Agent” as defined in the Prepetition Credit Agreement.

 

“Prepetition Collateral” shall have the meaning
set forth in the Interim Borrowing Order or the Final Borrowing Order, as
applicable.

 

“Prepetition Collateral Agent” shall have the
meaning provided in Section 2.17(a).

 

“Prepetition Collateral Documents” means the
“Collateral Documents” under, and as defined in, the Prepetition Credit
Agreement, in each case as amended, modified or supplemented through the
Petition Date.

 

“Prepetition Credit Agreement” has the meaning
specified in Preliminary Statement (2).

 

“Prepetition Debt” means Debt of any Loan Party
outstanding on the Petition Date, including Debt under the Prepetition Loan
Documents and the Subordinated Debt Documents.

 

40

 

“Prepetition Facilities” means each “Facility”
under, and as defined in, the Prepetition Credit Agreement, in each case as
amended, modified or supplemented through the Petition Date.

 

“Prepetition Lender Restructuring Support Lockup Agreement”
means the Restructuring Support Agreement dated as of October 7, 2009 by
and among the Borrower and certain of the Prepetition Lenders.

 

“Prepetition Lender Restructuring Term Sheet”
means the term sheet setting forth the commercial terms for a restructuring of
the Prepetition Facilities to be implemented on the effective date of an
Approved Plan, attached as Exhibit A to the Noteholder New Capital
Commitment Agreement, as further amended, supplemented, modified or waived from
time to time.

 

“Prepetition Lenders” has the meaning specified
in Preliminary Statement (2).

 

“Prepetition Loan Documents” means the
Prepetition Credit Agreement, the Hedge Agreements (as defined in the
Prepetition Credit Agreement) and the related guaranties, pledge agreements,
security agreements, mortgages, notes and other agreements and instruments
entered into in connection with the Prepetition Credit Agreement and such Hedge
Agreements, (including the Prepetition Collateral Documents) in each case as
amended, modified or supplemented through the Petition Date.

 

“Prepetition Obligations” means the
“Obligations” as defined in the Prepetition Credit Agreement.

 

“Prepetition Payment” means a payment (by way
of adequate protection or otherwise) of principal or interest or otherwise on
account of any Prepetition Debt of any Loan Party, “critical vendor payments”
or trade payables (including, without limitation, in respect of reclamation
claims) or other Prepetition claims against any Loan Party.

 

“Prepetition Secured Parties” means the
“Secured Parties” under, and as defined in, the Prepetition Credit Agreement,
in each case as amended, modified or supplemented through the Petition Date.

 

“Prepetition Steering Committee” means the
informal “Prepetition Lender Steering Committee”, comprised of certain
Prepetition Lenders previously identified to the Borrower.

 

“Primary Obligations” shall mean (x) in
the case of the Obligations that are First Out Obligations, all principal (or
Available LC Amount, as applicable) of, premium, fees and interest on, all
Advances (other than Last Out Term Advances) and all Letter of Credit
Outstandings and (y) in the case of Cash Management Obligations, all
amounts due under each Secured Cash Management Agreement that is a Qualified
Secured Cash Management Agreement (other than indemnities, fees (including,
without limitation, attorneys’ fees) and similar obligations and liabilities),

 

41

 

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

 

“Pro Rata Share” of any amount means the
product of such amount times a fraction the numerator of which is the
amount of such Lender’s Revolving Credit Commitment at such time and the
denominator of which is the aggregate principal amount of the Total Revolving
Credit Commitment at such time; provided that if the Pro Rate Share of
any Lender is to be determined after the Total Revolving Credit Commitment has
been terminated, then the Pro Rata Share of such Lender shall be determined
immediately prior (and without giving effect) to such termination.

 

“Qualified Secured Cash Management Agreement”
shall mean each Cash Management Agreement entered into by the Borrower or any
Subsidiary Guarantor with any Lender or any Affiliate thereof (even if such
Lender subsequently ceases to be a Lender under this Agreement for any reason)
so long as such Cash Management Agreement is designated as a Qualified Secured
Cash Management Agreement pursuant to Section 5.01(t).

 

“Raw Materials” shall mean any items or
materials used or consumed in the manufacture of goods to be sold by the Loan
Parties in the ordinary course of business.

 

“Recovery Event” means any settlement of or
payment in respect of any property or casualty insurance claim or any
condemnation proceeding relating to any asset of the Borrower or any Loan Party
or any of their respective Subsidiaries (in each case, other than any
non-Debtor Subsidiary).

 

“Register” has the meaning specified in Section 8.07(d).

 

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

 

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

 

“Rent Reserve” means a reserve established by
the Administrative Agent in respect of rent payments made by the Borrower or a
Subsidiary Guarantor for each location at which Inventory of the Borrower or a
Subsidiary Guarantor is located that is not subject to a Third Party Agreement
equal to three times the monthly gross rent or warehouse payments for each such
location, as adjusted from time to time by the Administrative Agent in its
Permitted Discretion.

 

“Reorganization Plan” means a plan of
reorganization in any of the Chapter 11 Cases.

 

42

 

“Reportable Event” means an event described in Section 4043
of ERISA and the regulations thereunder, as to which the PBGC has not waived
the notification requirement of Section 4043(a).

 

“Requirements of Law” means, with respect to
any Person, all laws, constitutions, statutes, treaties, ordinances, rules and
regulations, all orders, writs, decrees, injunctions, judgments, determinations
or awards of an arbitrator, a court or any other governmental authority, and
all governmental authorizations, binding upon or applicable to such Person or
to any of its properties, assets or businesses.

 

“Responsible Officer” means any officer of any
Loan Party or any of its Subsidiaries.

 

“Restricted Party” means any person listed:

 

(a)           in the Annex to the Executive Order;

 

(b)           on the “Specially Designated Nationals and
Blocked Persons” list maintained by the OFAC;

 

(c)           in any successor list to either of the
foregoing; or

 

(d)           any person or entity that commits,
threatens or conspires to commit or supports “terrorism” as defined in the
Executive Order.

 

“Restructuring Support Lockup Agreements” means
the Prepetition Lender Restructuring Support Lockup Agreement and the
Noteholder Restructuring Support Lockup Agreement.

 

“Restructuring Term Sheets” means the
Non-Binding Restructuring Term Sheet, the Prepetition Lender Restructuring Term
Sheet and the Noteholder New Capital Term Sheet.

 

“Retained Advisors” means Houlihan Lokey, as
advisors to the Lenders in connection with this Agreement and their credit
evaluation of the Borrower and its Subsidiaries.

 

“Revolving Credit Borrowing” means a borrowing
consisting of simultaneous Revolving Credit Advances of the same Type made by
the Lenders.

 

“Revolving Credit Advance” has the meaning
specified in Section 2.01(b).

 

“Revolving Credit Commitment” means, with
respect to any Lender at any time, the amount set forth opposite such Lender’s
name on Schedule I hereto under the caption “Revolving Credit Commitment” or,
if such Lender has entered into one or more Assignments and Acceptances, set
forth for such Lender in the Register maintained by the Administrative Agent
pursuant to Section 8.07(d) as such Lender’s “Revolving Credit
Commitment”, as such amount may be (x) reduced from time to time or
terminated as 

 

43

 

provided herein or (y) changed
from time to time pursuant to the Interim Borrowing Order or the Final
Borrowing Order.

 

“Revolving Credit Facility” has the meaning
specified in Preliminary Statement (4)

 

“Revolving Credit Lender” means each Lender
that has a Revolving Credit Commitment or that is owed or holds Revolving
Credit Advances.

 

“Revolving Credit Note” means a promissory note
of the Borrower payable to the order of any Lender, in substantially the form
of Exhibit A1 hereto, with blanks appropriately completed in conformity
with this Agreement, evidencing the aggregate indebtedness of the Borrower to
such Lender resulting from the Revolving Credit Advances made by such Lender.

 

“S&P” has the meaning specified in the
definition of “Cash Equivalents” in this Section 1.01.

 

“Secondary Obligations” shall mean all Cash
Management Obligations under Secured Cash Management Agreements that are not
Qualified Secured Cash Management Agreements.

 

“Secured Cash Management Agreement” shall mean
each Cash Management Agreement entered into by a Loan Party with any Cash
Management Creditor.

 

“Secured Parties” means the Administrative
Agent, the Lead Arranger, the Lender Parties and the Cash Management Creditors.

 

“Senior Lien Reserve” means a reserve
established by the Administrative Agent in respect of the aggregate amount of liabilities secured by Liens upon
Eligible Accounts and/or Eligible Inventory that are senior to the
Administrative Agent’s Liens (but imposition of any such reserve shall not
waive any Event of Default arising therefrom).

 

“Senior Subordinated Note Indenture” means the
indenture entered into by the Borrower and certain of its Subsidiaries in
connection with the issuance of the Senior Subordinated Notes, together with
all instruments and other agreements entered into by the Borrower or such
Subsidiaries in connection therewith, as the same may be amended, supplemented
or otherwise modified from time to time in accordance with Section 5.02(h).

 

“Senior Subordinated Notes” means the senior
subordinated notes due 2015 in an aggregate principal amount of $275,000,000 of
the Borrower issued on January 31, 2005, pursuant to the Senior
Subordinated Note Indenture.

 

“Senior Third Party Liens” has the meaning
provided in the Orders.

 

“Specified Reserve” shall mean, as of any date of
determination, the sum of (x) all or any portion of any Availability
Reserve which the Administrative Agent in its 

 

44

 

Permitted Discretion
elects to designate as a “Specified Reserve” plus (y) all or any
amount of the Carve-Out pursuant to the terms of the Interim Borrowing Order or
(when entered) the Final Borrowing Order, as applicable, which any member of
the Instructing Group directs the Administrative Agent to designate as a
“Specified Reserve”.

 

“Subordinated Debt” means (a) the Debt
evidenced by the Senior Subordinated Notes, (b) any other Debt of the
Borrower that is expressly subordinated to the Obligations of the Borrower
under the Loan Documents in a manner no less favorable to the Lender Parties
than those applicable to the Senior Subordinated Notes and (c) guaranty
Obligations of any Subsidiary Guarantor in respect of any such Debt referred to
in the foregoing clauses (a) and (b), so long as such guaranty Obligations
are subordinated to the Obligations of such Subsidiary Guarantor under the Loan
Documents in a manner no less favorable to the Lender Parties than those
applicable to the guaranty Obligations of such Subsidiary Guarantor in respect
of the Senior Subordinated Notes.

 

“Subordinated Debt Documents” means the Senior
Subordinated Note Indenture and all other agreements, indentures and
instruments pursuant to which Subordinated Debt is issued.

 

“Subsidiary” of any Person means any
corporation, partnership, joint venture, limited liability company, trust or
estate of which (or in which) more than 50% of (a) the issued and
outstanding capital stock having ordinary voting power to elect a majority of
the Board of Directors of such corporation (irrespective of whether at the time
capital stock of any other class or classes of such corporation shall or might
have voting power upon the occurrence of any contingency), (b) the
interest in the capital or profits of such partnership, joint venture or
limited liability company or (c) the beneficial interest in such trust or
estate is at the time directly or indirectly owned or controlled by such
Person, by such Person and one or more of its other Subsidiaries or by one or
more of such Person’s other Subsidiaries.

 

“Subsidiary Guarantors” means each Subsidiary
of the Borrower that is a U.S. Debtor and is listed on Schedule II hereto, and
each other Subsidiary of the Borrower that shall be required to deliver an
Assumption Agreement pursuant to this Agreement.

 

“Supermajority Revolving Credit Lenders” shall
mean those Revolving Credit Lenders which are not Defaulting Lenders which
would constitute the Majority Lenders under, and as defined in, this Agreement,
if the reference to “a majority” contained therein were changed to “66.67%”.

 

“Superpriority Claim” means a claim against any
Loan Party in any of the Chapter 11 Cases which is an administrative expense
claim having priority over any or all administrative expenses of the kind
specified in Sections 503(b) or 507(b) of the Bankruptcy Code.

 

“Swingline Advance” has the meaning specified
in Section 2.01(c).

 

“Swingline Back-Stop Arrangements” has the
meaning specified in Section 2.15(f).

 

45

 

“Swingline Bank” means the Administrative
Agent, in its capacity as Swingline Bank hereunder.

 

“Swingline Expiry Date” means that date which
is five Business Days prior to the Original Termination Date or, if applicable,
the Extended Termination Date.

 

“Swingline Note” means a promissory note of the
Borrower payable to the order of the Swingline Bank, in substantially the form
of Exhibit A2 hereto, with blanks appropriately completed in conformity
with this Agreement, evidencing the aggregate indebtedness of the Borrower to
the Swingline Bank resulting from the Swingline Advances made by the Swingline
Bank.

 

“Swingline Sub-Limit” means $5,000,000.

 

“Syndication Agent” has the meaning specified
in the recital of the parties to this Agreement.

 

“Synthetic Lease” shall mean a lease
transaction under which the parties intend that (i) the lease will be
treated as an “operating lease” by the lessee and (ii) the lessee will be
entitled to various tax and other benefits ordinarily available to owners (as
opposed to lessees) of like property.

 

“Taxes” has the meaning specified in Section 2.12(a).

 

“Termination Date” means the earliest of (i) the
Original Termination Date (or, if extended in accordance with the provisions of
Section 2.19, the Extended Termination Date, (ii) the effective date
of a Reorganization Plan in the Chapter 11 Cases, as specified in any such
Reorganization Plan, (iii) the date of termination of the Revolving Credit
Commitments of the Lenders and their obligations to make Advances hereunder and
the termination of the obligation of any Issuing Bank to issue Letters of
Credit hereunder and the cancellation and/or Cash Collateralization of all
outstanding Letters of Credit pursuant to the exercise of remedies under Section 6.01
as a result of the occurrence of an Event of Default which is continuing, (iv) the
date on which neither the Interim Borrowing Order nor the Final Borrowing Order
is a Final Order, (v) the date that is 45 days after the Interim Borrowing
Order Entry Date if the Final Borrowing Order has not been entered by the
Bankruptcy Court by such date, (vi) the date of entry of an order of the
Bankruptcy Court confirming a Reorganization Plan in the Chapter 11 Cases that
has not been consented to by the Lenders and fails to provide for the payment
in full in cash of all Obligations under this Agreement and the other Loan
Documents on the effective date of such plan, (vii) if a Reorganization
Plan that has been consented to by the Lenders or that provides for payment in
full in cash of all Obligations under this Agreement and the other Loan
Documents has been confirmed by order of the Bankruptcy Court, the earlier of
the effective date of such Reorganization Plan or the sixtieth (60th) day after
the date of entry of such confirmation order, (viii) the date of the
closing of a sale, transfer or other disposition of all or a material portion
of the assets or stock of the Loan Parties pursuant to Section 363 of the
Bankruptcy Code or otherwise, (ix) the date of entry of an order
converting any of the Chapter 11 Cases to one under Chapter 7 of the 

 

46

 

Bankruptcy Code, (x) the
date of indefeasible prepayment in full by the Borrower of the Advances and the
cancellation and/or Cash Collateralization of all outstanding Letters of Credit
and the permanent reduction of the Revolving Credit Commitments to zero dollars
($0) in accordance with Section 2.05.

 

“Third Party Agreement” shall mean (a) an
agreement, in form and substance reasonably acceptable to the Administrative
Agent, pursuant to which a landlord, warehouseman, processor,
shipper, customs broker or freight forwarder, repairman, mechanic, consignee,
bailee or other third
party who stores, processes, maintains or holds Collateral acknowledges, among
other things, the Administrative Agent’s Lien on such Collateral, the
Administrative Agent’s ability to enforce its Lien on such Collateral and the
subordination of any Lien held by such landlord, warehouseman, processor,
shipper, customs broker or freight forwarder, repairman, mechanic, consignee,
bailee or other third
party on such Collateral to the Administrative Agent’s Lien thereon or (b) an
agreement, in form and substance reasonably acceptable to the Administrative
Agent, pursuant to which a holder of a Lien on premises of the Borrower or any
Subsidiary Guarantor where Eligible Inventory is located agrees and
acknowledges, among other things, that the Administrative Agent may without
interference from such Lien holder (i) gain access to, remove and exercise
its rights against any Inventory located at such premises after an Event of
Default, and that such Lien holder may not remove or exercise any remedies
against such Inventory except as agreed, (ii) for a period of time not
less than ninety (90) days (or such shorter time period as the Administrative
Agent may agree in its sole discretion) after the Administrative Agent shall
have taken possession of such Inventory, (A) store such Inventory at such
premises and (B) conduct a sale of such Inventory at such premises and (iii) examine
and make copies of books and records of the Borrower or any Subsidiary
Guarantor located at such premises with respect to such Inventory.

 

“Total Revolving Credit Commitment” shall mean,
at any time, the sum of all Revolving Credit Commitments of the Lenders at such
time. The initial amount of the Total Revolving Credit Commitment of all
Lenders is the lesser of (a) on and after the Final Borrowing Order Entry
Date, $25,000,000 (less the amount, if any, by which the Revolving Credit
Commitments have been reduced as provided herein) or (b) such lesser
amount as is set forth in the Final Borrowing Order as then in effect, provided
that to the extent the Final Borrowing Order designates that the Total
Revolving Credit Commitment of all Lenders is less than $25,000,000 (less the
amount, if any, by which the Revolving Credit Commitments have been reduced as
provided herein), each Lender’s Revolving Credit Commitment shall be
proportionately reduced and Schedule I shall be amended (without the consent of
the Loan Parties) accordingly.

 

“Transactions” means (a) the execution,
delivery and performance by each Loan Party of the Loan Documents to which it
is to be a party, the making of Revolving Credit Advances and the use of the
proceeds thereof and the issuance of Letters of Credit hereunder and (b) the
commencement of the Chapter 11 Cases.

 

“Type” refers to the distinction between
Advances bearing interest at the Base Rate and Advances bearing interest at the
Eurodollar Rate.

 

47

 

“UCC” means the Uniform Commercial Code as from
time to time in effect in the relevant jurisdiction.

 

“Unfunded Current Liability” of any Plan means
the amount, if any, by which the present value of the accumulated benefits
under the Plan exceeds the fair market value of the assets allocable thereto as
determined in accordance with Statement of Financial Accounting Standards No. 87
as reported in the most recent actuarial report available for such Plan.

 

“United States” and “U.S.” each mean the
United States of America.

 

“Unmatured Surviving Obligations” means
Obligations which by their terms survive termination of this Agreement or any
other Loan Document, as applicable, and which, at the relevant time, are not
then due and payable.

 

“Unused Revolving Credit Commitment” means,
with respect to any Lender at any time, (a) such Lender’s Revolving Credit
Commitment at such time minus (b) the sum of (i) the aggregate
principal amount of all Revolving Credit Advances made by such Lender and
outstanding at such time, plus (ii) such Lender’s Pro Rata Share of
(A) the aggregate principal amount of all Swingline Advances made by the
Swingline Bank pursuant to Section 2.01(c) and outstanding at such
time, (B) the aggregate Available LC Amount of all Letters of Credit outstanding
at such time and (C) the aggregate principal amount of all Letter of
Credit Advances made by each Issuing Bank pursuant to Section 2.03(e) and
outstanding at such time.

 

“Updated DIP Forecast” means an update to the
Initial DIP Forecast delivered pursuant to Section 2.19(b)(vi) or Section 5.03(d).

 

“U.S. Debtor” and “U.S. Debtors”
respectively have the meanings specified in Preliminary Statement (1).

 

“U.S. Dollar Equivalent” of an amount
denominated in a currency other than U.S. Dollars shall mean, at any time for
the determination thereof, the amount of U.S. Dollars which could be purchased
with the amount of such currency involved in such computation at the spot
exchange rate therefor as quoted by the Administrative Agent as of 11:00 A.M.
(New York time) on the date two Business Days prior to the date of any
determination thereof for purchase on such date.

 

“U.S. Person” means any Person which is
organized under the laws of a jurisdiction of the United States.

 

“USA Patriot Act” means the Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act, Title III of Public Law 107-56 (signed into law October 26,
2001).

 

“Value” means (a) for Inventory, its value
determined on the basis of the lower of cost or market, calculated on a
first-in, first out basis, and excluding any reserves established by the Loan
Parties and any portion of cost attributable to intercompany profit

 

48

 

among the Loan Parties;
and (b) for an Account, the meaning set forth in the final paragraph of
the definition of “Eligible Account”.

 

“Variance Report” has the meaning specified in Section 5.03(g).

 

“Voting Stock” means capital stock issued by a
corporation, or equivalent interests in any other Person, the holders of which
are ordinarily, in the absence of contingencies, entitled to vote for the
election of directors (or persons performing similar functions) of such Person,
even if the right so to vote has been suspended by the happening of such a
contingency.

 

“Work-in-Process” shall mean Inventory which
consists of work-in-process including, without limitation, materials other than
Raw Materials, Finished Goods or saleable products, title to which and sole
ownership of which is vested in a Loan Party.

 

“$” or “U.S. Dollars” means the lawful
currency of the United States of America.

 

SECTION 1.02.Computation
of Time Periods.  In this Agreement,
in the computation of periods of time from a specified date to a later
specified date, the word “from” means “from and including” and the words “to”
and “until” each mean “to but excluding”.

 

SECTION 1.03.Accounting
Terms.  All accounting terms not
specifically defined herein shall be construed in accordance with generally
accepted accounting principles consistent with those applied in the preparation
of the financial statements referred to in Section 4.01(f) (“GAAP”).

 

SECTION 1.04.Currency
Equivalent.  For purposes of
construction of the terms hereof, the equivalent in another currency of an
amount in U.S. Dollars shall be determined by using the quoted spot rate at
which DBTCA’s principal office in New York City offers to purchase such other
currency with the equivalent in dollars in New York City at 9:00 A.M. (New
York City time) on the date on which such equivalent is to be determined.

 

SECTION 1.05.Uniform
Commercial Code.  Unless otherwise
defined herein or in the other Documents, terms used herein which are defined
in the UCC as in effect in the State of New York from time to time are used
herein as therein defined.

 

ARTICLE II

 

AMOUNTS AND TERMS OF
THE ADVANCES

AND THE LETTERS OF
CREDIT

 

SECTION 2.01.Last
Out Term Advances, Revolving Credit Advances and Swingline Advances.  (a) Last Out Term Advances.  Each Last Out Term Lender severally agrees,
on the terms and conditions hereinafter set forth, to make a single term
advance (the “Last Out Term Advances”) to the Borrower on the Closing
Date in the amount of such Last Out Term Lender’s Last Out Term Commitment at
such time.  The Last Out Term Borrowing
shall consist of Last Out Term Advances made simultaneously by the Last Out
Term Lenders ratably

 

49

 

according to their Last
Out Term Commitments.  Amounts borrowed
under this Section 2.01(a) and repaid or prepaid may not be
reborrowed.

 

(b)           Revolving Credit Advances.  Each Revolving Credit Lender severally
agrees, on the terms and conditions hereinafter set forth, to make advances
(each a “Revolving Credit Advance”) to the Borrower from time to time on
any Business Day during the period from the Closing Date until the Termination
Date; provided that a Revolving Credit Advance shall not be made (and
shall not be required to be made) by any Revolving Credit Lender in any
instance where the incurrence thereof (after giving effect to the use of the
proceeds thereof on the date of the incurrence thereof to repay any amounts
theretofore outstanding pursuant to this Agreement) would cause (x) the
Individual Exposure of such Revolving Credit Lender to exceed the amount of its
Revolving Credit Commitment at such time or (y) the Aggregate Exposure
(after giving effect to the use of the proceeds thereof on the date of the
incurrence thereof to repay any amounts theretofore outstanding pursuant to this
Agreement) to exceed (A) the Total Revolving Credit Commitment at such
time minus (B) the Specified Reserve at such time.  Each Borrowing shall be in an aggregate
amount of $1,000,000 or an integral multiple of $250,000 in excess thereof
(other than a Borrowing the proceeds of which shall be used solely to repay or
prepay in full outstanding Swingline Advances or Letter of Credit Advances) and
shall consist of Revolving Credit Advances made simultaneously by the Revolving
Credit Lenders ratably according to their Revolving Credit Commitments.  The Borrower may borrow under this Section 2.01,
prepay pursuant to Section 2.06(a) and reborrow under this Section 2.01
in accordance with the provisions of this Agreement.

 

(c)           Swingline Advances.  The Borrower may request the Swingline Bank
to make, and the Swingline Bank shall make, on the terms and conditions
hereinafter set forth, a revolving loan or revolving loans (each, a “Swingline
Advance” and collectively, the “Swingline Advances”) to the Borrower
from time to time on any Business Day during the period from the Closing Date
until the Swingline Expiry Date in an aggregate amount not to exceed at any
time outstanding the lesser of (i) the Swingline Sub-Limit and (ii) an
amount that would not cause the Aggregate Exposure (after giving effect to the
use of the proceeds thereof on the date of the incurrence thereof to repay any
amounts theretofore outstanding pursuant to this Agreement) to exceed (A) the
Total Revolving Credit Commitment at such time minus (B) the
Specified Reserve at such time.  No
Swingine Advance shall be used for the purpose of funding the payment of
principal of any other Swingline Advance. 
Each Swingline Advance shall be in an amount of $500,000 or an integral
multiple of $250,000 in excess thereof and shall be made as a Base Rate
Advance.  Within the limits of the
Swingline Sub-Limit and within the limits referred to in clause (ii) above,
the Borrower may borrow under this Section 2.01(c), repay pursuant to Section 2.04(c) or
prepay pursuant to Section 2.06(a) and reborrow under this Section 2.01(c).

 

SECTION 2.02.Making
Last Out Term Advances, Revolving Credit Advances and Swingline Advances.  (a)  Last Out Term Advances.  The Last Out Term Borrowing shall be made on
the Closing Date on notice, given not later than 12:00 P.M. (New York City
time) on the third Business Day prior to the date of the proposed Borrowing in
the case of a Last Out Term Borrowing consisting of Eurodollar Rate Advances,
or the first Business Day prior to the date of the proposed Borrowing in the
case of a Last Out Term Borrowing consisting of Base Rate Advances, by the
Borrower to the Administrative Agent, which shall give to each Last Out Term
Lender prompt notice thereof by telecopier or electronic mail.  Each 

 

50

 

such notice of a
Borrowing (a “Notice of Last Out Term Borrowing”) shall be by telephone,
confirmed immediately in writing by telecopier or electronic mail in PDF
format, in substantially the form of Exhibit B hereto, specifying therein
the requested (i) Type of Advances comprising such Borrowing and (ii) aggregate
amount of such Borrowing, which shall equal the aggregate Last Out Term
Commitments of all of the Last Out Term Lenders.  Each Last Out Term Lender shall, before 12:00 P.M.
(New York City time) on the Closing Date, make available for the account of its
Lending Office to the Administrative Agent at the Administrative Agent’s
Account, in same day funds, such Last Out Term Lender’s ratable portion of the
Last Out Term Borrowing in accordance with the respective Last Out Term
Commitments of such Last Out Term Lender and the other Last Out Term
Lenders.  After the Administrative Agent’s
receipt of such funds and upon fulfillment of the applicable conditions set
forth in Article III, the Administrative Agent will make such funds
available to the Borrower by crediting the Borrower’s Account, for onward
transmission to the bank account notified to the Administrative Agent by the
Borrower from time to time into which monies are permitted to be deposited in
accordance with the provisions of this Agreement.  Notwithstanding anything herein to the
contrary, the Borrower is deemed to have provided a Notice of Last Out Term Borrowing
to the Administrative Agent in accordance with the foregoing provisions
requesting that on the Closing Date (i) a Last Out Term Borrowing of Base
Rate Advances be made by all Last Out Term Lenders, and (ii) such Last Out
Term Borrowing equal the aggregate Last Out Term Commitments of all Last Out
Term Lenders.

 

(b)           Revolving Credit Advances.  Each Borrowing shall be made on notice, given
not later than 12:00 P.M. (New York City time) on the third Business Day
prior to the date of the proposed Borrowing in the case of a Borrowing
consisting of Eurodollar Rate Advances, or the first Business Day prior to the
date of the proposed Borrowing in the case of a Borrowing consisting of Base
Rate Advances (but excluding for this purpose Swingline Advances and Revolving
Credit Advances made pursuant to a Mandatory Borrowing) by the Borrower to the
Administrative Agent, which shall give to each Revolving Credit Lender prompt
notice thereof by telecopier or electronic mail.  Each such notice of a Borrowing (a “Notice
of Revolving Credit Borrowing”) shall be by telephone, confirmed
immediately in writing by telecopier or electronic mail in PDF format, in
substantially the form of Exhibit B hereto, specifying therein the
requested (i) date of such Borrowing, (ii) Type of Advances
comprising such Borrowing and (iii) aggregate amount of such
Borrowing.  Each Revolving Credit Lender
shall, before 12:00 P.M. (New York City time) on the date of such Borrowing,
make available for the account of its Lending Office to the Administrative
Agent at the Administrative Agent’s Account, in same day funds, such Revolving
Credit Lender’s ratable portion of such Borrowing in accordance with the
respective Revolving Credit Commitments of such Revolving Credit Lender and the
other Revolving Credit Lenders.  After
the Administrative Agent’s receipt of such funds and upon fulfillment of the
applicable conditions set forth in Article III, the Administrative Agent
will make such funds available to the Borrower by crediting the Borrower’s
Account, for onward transmission to the bank account notified to the
Administrative Agent by the Borrower from time to time into which monies are
permitted to be deposited in accordance with the provisions of this Agreement; provided,
however, that the Administrative Agent shall first make a portion of
such funds equal to the aggregate principal amount of any Swingline Advances
made by the Swingline Bank or any Letter of Credit Advances made by any Issuing
Bank and outstanding on the date of such Borrowing, plus interest accrued and
unpaid thereon to and as of such date,

 

51

 

available to the Swingline
Bank or to such Issuing Bank, as the case may be, for repayment of such
Swingline Advances or such Letter of Credit Advances.

 

(c)           Each Swingline Advance shall be made
on notice, given not later than 1:00 P.M. (New York City time) on the date
of the proposed Swingline Advance, by the Borrower to the Swingline Bank and
the Administrative Agent.  Each such
notice of a Swingline Advance (a “Notice of Swingline Borrowing”) shall
be made by telephone, and confirmed immediately in writing by telecopier or
electronic mail in PDF format, in substantially the form of Exhibit C
hereto, and shall specify in each case (i) the date of such Swingline
Advance, (ii) the amount of such Swingline Advance and (iii) the
maturity of such Swingline Advance (which maturity shall be no later than the
earlier of (A) the seventh day after the requested date of such Swingline
Advance and (B) the Swingline Expiry Date).  The Swingline Bank will make the amount
thereof available to the Administrative Agent at the Administrative Agent’s
Account, in same day funds.  After the
Administrative Agent’s receipt of such funds and upon fulfillment of the
applicable conditions set forth in Article III, the Administrative Agent
will make such funds available to the Borrower by crediting the Borrower’s
Account, for onward transmission to the bank account notified to the
Administrative Agent by the Borrower from time to time into which monies are
permitted to be deposited in accordance with the provisions of this
Agreement.  On any Business Day, the
Swingline Bank may, in its sole discretion, give notice to the Revolving Credit
Lenders, with a copy of notice to the Administrative Agent, that the Swingline
Bank’s outstanding Swingline Advances shall be funded with one or more
Borrowings of Revolving Credit Advances (provided that such notice shall be
deemed to have been automatically given upon the occurrence of a Default or an
Event of Default under Section 6.01 or upon the exercise of any of the
remedies provided in the last paragraph of Section 6.01), in which case
one or more Borrowings of Revolving Credit Advances constituting Base Rate
Advances (each such Borrowing, a “Mandatory Borrowing”) shall be made on
the immediately succeeding Business Day by all Revolving Credit Lenders pro
rata based on each such Revolving Credit Lender’s Pro Rata Share as of the date
of such demand (determined before giving effect to any termination of the
Revolving Credit Commitments pursuant to the last paragraph of Section 6.01)
and the proceeds thereof shall be applied directly by the Swingline Bank to
repay the Swingline Bank for such outstanding Swingline Advances.  Each Revolving Credit Lender hereby
irrevocably agrees to make Revolving Credit Advances upon one Business Day’s
notice pursuant to each Mandatory Borrowing in the amount and in the manner
specified in the preceding sentence and on the date specified in writing by the
Swingline Bank notwithstanding (i) the amount of the Mandatory Borrowing
may not comply with any minimum borrowing amount otherwise required hereunder, (ii) whether
any conditions specified in Article III are then satisfied, (iii) whether
a Default or an Event of Default then exists, (iv) the date of such
Mandatory Borrowing, and (v) the amount of the Total Revolving Credit
Commitment at such time.  In the event
that any Mandatory Borrowing cannot for any reason be made on the date
otherwise required above, then each Revolving Credit Lender hereby agrees that
it shall forthwith purchase (as of the date the Mandatory Borrowing would
otherwise have occurred, but adjusted for any payments received from the
Borrower on or after such date and prior to such purchase) from the Swingline
Bank, and the Swingline Bank shall sell and assign to each such other Revolving
Credit Lender, such participations in the outstanding Swingline Advances as
shall be necessary to cause the Revolving Credit Lenders to share in such
Swingline Advances ratably based upon their respective Pro Rata Share as of the
date of such demand (determined before giving effect to any termination of the
Revolving Credit Commitments pursuant to the last paragraph of Section

 

52

 

6.01), by making available
for the account of its Lending Office to the Administrative Agent for the
account of the Swingline Bank, by deposit to the Administrative Agent’s
Account, in same day funds, an amount equal to the portion of the participation
in the outstanding principal amount of such Swingline Advance to be purchased
by such Revolving Credit Lender, provided that (x) all interest payable on
the Swingline Advances shall be for the account of the Swingline Bank until the
date as of which the respective participation is required to be purchased and,
to the extent attributable to the purchased participation, shall be payable to
the participant from and after such date and (y) at the time any purchase
of participations pursuant to this sentence is actually made, the purchasing
Revolving Credit Lender shall be required to pay the Swingline Bank interest on
the principal amount of participation purchased for each day from and including
the day upon which the Mandatory Borrowing would otherwise have occurred to but
excluding the date of payment for such participation, at the overnight Federal
Funds Rate for the first three days and at the interest rate otherwise
applicable to Revolving Credit Advances maintained as Base Rate Advances
hereunder for each day thereafter. The Borrower hereby agrees to each such sale
and assignment of participations in Swingline Advances. Each Revolving Credit
Lender agrees to purchase its Pro Rata Share of a participation in an
outstanding Swingline Advance on (i) the Business Day on which demand
therefor is made by the Swingline Bank; provided that notice of such demand is
given not later than 1:00 P.M. (New York City time) on such Business Day
or (ii) the first Business Day next succeeding such demand if notice of
such demand is given after such time. 
Upon any such assignment by the Swingline Bank to any other Revolving
Credit Lender of a participation in a Swingline Advance, the Swingline Bank
represents and warrants to such other Revolving Credit Lender that the
Swingline Bank is the legal and beneficial owner of such participation being
assigned by it, but makes no other representation or warranty and assumes no
responsibility with respect to such participation in such Swingline Advance,
the Loan Documents or any Loan Party.

 

(d)           Mandatory Borrowings shall be made
upon the notice specified in Section 2.02(c) above, with the Borrower
irrevocably agreeing, by its incurrence of any Swingline Advance, to the making
of the Mandatory Borrowings as set forth in Section 2.02(c) above.

 

(e)           Anything in subsection (a) or (b) above
to the contrary notwithstanding, (i) the Borrower may not select
Eurodollar Rate Advances for any Borrowing if the aggregate amount of such
Borrowing is less than $1,000,000 or if the obligation of the Lenders to make
Eurodollar Rate Advances shall then be suspended pursuant to Section 2.09
or Section 2.10 and (ii) the Revolving Credit Advances made on any
date may not be outstanding on any date as part of more than ten separate
Borrowings.

 

(f)            Each Notice of Last Out Term Borrowing,
Notice of Revolving Credit Borrowing and Notice of Swingline Borrowing shall be
irrevocable and binding on the Borrower. 
In the case of any Borrowing that the related Notice of Last Out Term
Borrowing or Notice of Revolving Credit Borrowing specifies is to be comprised
of Eurodollar Rate Advances, the Borrower shall indemnify each Lender against
any loss, cost or expense incurred by such Lender as a result of any failure to
fulfill on or before the date specified in such Notice of Last Out Term Borrowing
or Notice of Revolving Credit Borrowing, as the case may be, for such
Borrowing, the applicable conditions set forth in Article III, including,
without limitation, any loss (including loss of anticipated profits), cost or
expense incurred by reason of the liquidation or reemployment of deposits or
other funds acquired by such Lender to fund the Eurodollar Rate

 

53

 

Advance to be made by such
Lender as part of such Borrowing when such Eurodollar Rate Advance, as a result
of such failure, is not made on such date.

 

(g)           Unless the Administrative Agent shall
have received notice from a Lender prior to the date of any Borrowing that such
Lender will not make available to the Administrative Agent such Lender’s
ratable portion of such Borrowing, the Administrative Agent may assume that
such Lender has made such portion available to the Administrative Agent on the
date of such Borrowing in accordance with subsection (a), (b) or (c) of
this Section 2.02 and the Administrative Agent may, in reliance upon such
assumption, make available to the Borrower on such date a corresponding
amount.  If and to the extent that such
Lender shall not have so made such ratable portion available to the
Administrative Agent, such Lender and the Borrower severally agree to repay or
pay to the Administrative Agent forthwith on demand such corresponding amount
and to pay interest thereon, for each day from the date such amount is made
available to the Borrower until the date such amount is repaid or paid to the
Administrative Agent, at (i) in the case of the Borrower, the interest
rate applicable at such time under Section 2.07 to Advances comprising
such Borrowing and (ii) in the case of such Lender, the Federal Funds
Rate.  If such Lender shall pay to the
Administrative Agent such corresponding amount, such amount so paid shall
constitute such Lender’s Revolving Credit Advance as part of such Borrowing for
all purposes.

 

(h)           The failure of any Lender to make the
Advance to be made by it as part of any Borrowing shall not relieve any other
Lender of its obligation, if any, hereunder to make its Advance on the date of
such Borrowing, but no Lender shall be responsible for the failure of any other
Lender to make the Advance to be made by such other Lender on the date of any
Borrowing.

 

SECTION 2.03.  Issuance of and Drawings and
Reimbursements Under Letters of Credit.

 

(a)           Letters of Credit. (b)

 

(i)            Subject to and upon the terms and
conditions set forth herein, the Borrower may request that an Issuing Bank
issue, at any time and from time to time on and after the Closing Date and
prior to the 30th day prior to the Original Termination Date or
(if applicable) the Extended Termination Date, for the account of the Borrower
and for the benefit of (x) any holder (or any trustee, agent or other
similar representative for any such holders) of L/C Supportable Obligations, an
irrevocable standby letter of credit, in a form customarily used by such
Issuing Bank or in such other form as is reasonably acceptable to such Issuing
Bank, and (y) sellers of goods to the Borrower or any of its Subsidiaries,
an irrevocable trade letter of credit, in a form customarily used by such
Issuing Bank or in such other form as has been approved by such Issuing Bank,
in each case other than any irrevocable standby letter of credit or irrevocable
trade letter of credit that is issued in substitution for (whether for renewal
or extension purposes) a Prepetition Letter of Credit (each such letter of
credit, a “Letter of Credit” and, collectively, the “Letters of
Credit”).  All Letters of Credit
shall be denominated in U.S. Dollars and shall be issued on a sight basis only.

 

(ii)           Subject to and upon the terms and
conditions set forth herein, each Issuing

 

54

 

Bank agrees that it will, at
any time and from time to time on and after the Closing Date and prior to the
30th day prior to the Termination Date, following
its receipt of the respective Letter of Credit Request, issue for the account
of the Borrower (or renew or extend), one or more Letters of Credit as are
permitted to remain outstanding hereunder without giving rise to a Default or
an Event of Default, provided that no Issuing Bank shall be under any
obligation to issue (or renew or extend) any Letter of Credit of the types
described and permitted above if at the time of such issuance (or renewal or
extension):

 

(A)          any order, judgment or decree of any
Governmental Authority or arbitrator shall purport by its terms to enjoin or
restrain such Issuing Bank from issuing such Letter of Credit or any
requirement of law applicable to such Issuing Bank or any request or directive
(whether or not having the force of law) from any Governmental Authority with
jurisdiction over such Issuing Bank shall prohibit, or request that such
Issuing Bank refrain from, the issuance of letters of credit generally or such
Letter of Credit in particular or shall impose upon such Issuing Bank with
respect to such Letter of Credit any restriction or reserve or capital
requirement (for which such Issuing Bank is not otherwise compensated
hereunder) not in effect with respect to such Issuing Bank on the date hereof,
or any unreimbursed loss, cost or expense which was not applicable or in effect
with respect to such Issuing Bank as of the date hereof and which such Issuing
Bank reasonably and in good faith deems material to it; or

 

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

 

(b)           Maximum Letter of Credit
Outstandings; Final Maturities. 
Notwithstanding anything to the contrary contained in this Agreement, (i) no
Letter of Credit shall be issued the Available LC Amount of which, when added
to the Letter of Credit Outstandings (exclusive of Letter of Credit Advances
which are repaid on the date of, and prior to the issuance of, the respective
Letter of Credit) at such time would exceed the lesser of (x) the Letter
of Credit Sub-Limit at such time and (y) an amount that would cause the
Aggregate Exposure (after giving effect to such issuance) to exceed (A) the
Total Revolving Credit Commitment at such time minus (B) the
Specified Reserve at such time, (ii) no Letter of Credit shall be issued
(or required to be issued) at any time when the Aggregate Exposure exceeds (or
would after giving effect to such issuance exceed) the Borrowing Base at such
time and (iii) each Letter of Credit (whether being issued for the first
time or being renewed or extended) shall by its terms terminate (x) in the
case of standby Letters of Credit, on or before the earlier of (A) the
date which occurs 12 months after the date of issuance (or renewal or extension)
thereof and (B) ten Business Days prior to the Original Termination Date
or, if applicable, the Extended Termination Date and (y) in the case of
trade Letters of Credit, on or before the earlier of (A) the date which
occurs 180 days after the date of issuance (or renewal or extension) thereof
and (B) ten Business Days prior to the Original Termination Date or, if
applicable, the Extended Termination Date.

 

(c)           Letter of Credit Requests, Minimum Stated Amount.

 

55

 

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

 

(ii)           The making of each Letter of Credit
Request shall be deemed to be a representation and warranty by the Borrower to
the First Out Lenders that such Letter of Credit may be issued in accordance
with, and will not violate the requirements of, Section 2.03(b).  Unless the respective Issuing Bank has
received notice from the Borrower, any other Loan Party or the Majority Lenders
before it issues a Letter of Credit that one or more of the conditions
specified in Article III are not then satisfied, or that the issuance of
such Letter of Credit would violate Section 2.03(b), then such Issuing
Bank shall, subject to the terms and conditions of this Agreement, issue the
requested Letter of Credit for the account of the Borrower in accordance with
such Issuing Bank’s usual and customary practices.  Upon the issuance of or modification or
amendment to any standby Letter of Credit, each Issuing Bank shall promptly
notify the Borrower and the Administrative Agent, in writing of such issuance,
modification or amendment and such notice shall be accompanied by a copy of
such Letter of Credit or the respective modification or amendment thereto, as
the case may be.  Promptly after receipt
of such notice, the Administrative Agent shall notify the Participants, in
writing, of such issuance, modification or amendment.  On the first Business Day of each week, each
Issuing Bank shall furnish the Administrative Agent with a written (including
via telecopier or email) report of the daily aggregate outstandings of trade
Letters of Credit issued by such Issuing Bank for the immediately preceding week.  The initial Available LC Amount of each
Letter of Credit shall not be less than $100,000  or such lesser amount as is acceptable to the respective
Issuing Bank.

 

(d)           Letters of Credit Participations.

 

(i)            Immediately upon the issuance by an
Issuing Bank of any Letter of Credit, such Issuing Bank shall be deemed to have
sold and transferred to each Revolving Credit Lender, and each such Revolving
Credit Lender (in its capacity under this Section 2.03(d), a “Participant”)
shall be deemed irrevocably and unconditionally to have purchased and received
from such Issuing Bank, without recourse or warranty, an undivided interest and
participation, to the extent of such Participant’s Pro Rata Share, in such
Letter of Credit, each drawing or payment made thereunder and the obligations
of the Borrower under this Agreement with respect thereto, and any security
therefor or guarantee pertaining thereto. 
Upon any change in the Revolving Credit Commitments or Pro Rata Shares
of the Revolving Credit Lenders pursuant to Section 8.07, it is hereby
agreed that, with respect to all outstanding Letters of Credit and Letter of
Credit Advances relating thereto, there shall be an automatic adjustment to the
participations pursuant to this Section 2.03(d) to reflect the new
Pro Rata Shares of the assignor and assignee Revolving Credit Lender, as the
case may be.

 

(ii)           In determining whether to pay under
any Letter of Credit, no Issuing Bank shall have any obligation relative to the
other Revolving Credit Lenders other than to confirm that any documents
required to be delivered under such Letter of Credit appear to have been
delivered and that they appear to substantially comply on their face with the
requirements of such Letter of Credit. 
Any action taken or omitted to be taken by an Issuing Bank under or in

 

56

 

connection with any Letter
of Credit issued by it shall not create for such Issuing Bank any resulting
liability to the Borrower, any other Loan Party, any Revolving Credit Lender or
any other Person unless such action is taken or omitted to be taken with gross
negligence or willful misconduct on the part of such Issuing Bank (as
determined by a court of competent jurisdiction in a final and non-appealable
decision).

 

(iii)          In the event that an Issuing Bank
makes a Letter of Credit Advance under any Letter of Credit issued by it and
the Borrower shall not have reimbursed such amount in full to such Issuing Bank
pursuant to Section 2.03(e)(i), such Issuing Bank shall promptly notify
the Administrative Agent, which shall promptly notify each Participant of such
failure, and each Participant shall promptly and unconditionally pay to such
Issuing Bank the amount of such Participant’s Pro Rata Share of such
unreimbursed payment in U.S. Dollars and in same day funds.  If the Administrative Agent so notifies,
prior to 12:00 Noon (New York City time) on any Business Day, any Participant
required to fund a payment under a Letter of Credit, such Participant shall
make available to the respective Issuing Bank in U.S. Dollars such Participant’s
Pro Rata Share of the amount of such payment on such Business Day in same day
funds.  If and to the extent such
Participant shall not have so made its Pro Rata Share of the amount of such
payment available to the respective Issuing Bank, such Participant agrees to
pay to such Issuing Bank, forthwith on demand, such amount, together with
interest thereon, for each day from such date until the date such amount is
paid to such Issuing Bank at the overnight Federal Funds Rate for the first
three days and at the interest rate applicable to Base Rate Advances for each
day thereafter.  The failure of any
Participant to make available to an Issuing Bank its Pro Rata Share of any
payment under any Letter of Credit issued by such Issuing Bank shall not
relieve any other Participant of its obligation hereunder to make available to
such Issuing Bank its Pro Rata Share of any payment under any Letter of Credit
on the date required, as specified above, but no Participant shall be
responsible for the failure of any other Participant to make available to such
Issuing Bank such other Participant’s Pro Rata Share of any such payment.

 

(iv)          Whenever an Issuing Bank receives a
payment of a reimbursement obligation as to which it has received any payments
from the Participants pursuant to Section 2.03(d)(iii) above, such
Issuing Bank shall pay to each such Participant that has paid its Pro Rata Share
thereof, in U.S. Dollars and in same day funds, an amount equal to such Participant’s
share (based upon the proportionate aggregate amount originally funded by such
Participant to the aggregate amount funded by all Participants) of the
principal amount of such reimbursement obligation and interest thereon accruing
after the purchase of the respective participations.

 

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

 

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

 

57

 

(A)                              any lack of
validity or enforceability of this Agreement or any of the other Loan
Documents;

 

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

 

(C)                                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;

 

(D)                               the surrender
or impairment of any security for the performance or observance of any of the
terms of any of the Loan Documents; or

 

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

 

(e)                                  Agreement to
Repay Letter of Credit Advances.

 

(i)                                     The Borrower agrees to
reimburse each Issuing Bank, by making payment to the Administrative Agent in
immediately available funds at its Lending Office, for any payment or
disbursement made by such Issuing Bank under any Letter of Credit issued by it
(each such amount, so paid until reimbursed by the Borrower, a “Letter of
Credit Advance”), not later than one Business Day following receipt by the
Borrower of notice of such payment or disbursement, with interest on the amount
so paid or disbursed by such Issuing Bank, to the extent not reimbursed prior
to 12:00 Noon (New York City time) on the date of such payment or disbursement,
from and including the date paid or disbursed to but excluding the date such
Issuing Bank was reimbursed by the Borrower therefor at a rate per annum equal
to the Base Rate as in effect from time to time plus the Applicable Margin as
in effect from time to time for Base Rate Advances; provided, however,
to the extent such amounts are not reimbursed prior to 12:00 Noon (New York
City time) on the third Business Day following the receipt by the Borrower of
notice of such payment, interest shall thereafter accrue on the amounts so paid
or disbursed by such Issuing Bank (and until reimbursed by the Borrower) at a
rate per annum equal to the Base Rate as in effect from time to time plus the
Applicable Margin for Base Rate Advances as in effect from time to time plus
2.00%, with such interest to be payable on demand.  Each Issuing Bank shall give the Borrower
prompt written notice of each Letter of Credit Disbursement (as defined below)
under any Letter of Credit issued by it, provided that the failure to give any
such notice shall in no way affect, impair or diminish the Borrower’s
obligations hereunder.

 

(ii)                                  The obligations of the
Borrower under this Section 2.03(e) to reimburse 

 

58

 

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

 

(f)                                    Increased Costs.  If at any time after the Closing Date, the
introduction of or any change in any applicable law, rule, regulation, order,
guideline or request or in the interpretation or administration thereof by the
NAIC or any Governmental Authority charged with the interpretation or
administration thereof, or compliance by any Issuing Bank or any Participant
with any request or directive by the NAIC or by any such Governmental Authority
(whether or not having the force of law), shall either (i) impose, modify
or make applicable any reserve, deposit, capital adequacy or similar requirement
against letters of credit issued by any Issuing Bank or participated in by any
Participant, or (ii) impose on any Issuing Bank or any Participant any
other conditions relating, directly or indirectly, to this Agreement or any
Letter of Credit; and the result of any of the foregoing is to increase the
cost to any Issuing Bank or any Participant of issuing, maintaining or
participating in any Letter of Credit, or reduce the amount of any sum received
or receivable by any Issuing Bank or any Participant hereunder or reduce the
rate of return on its capital with respect to Letters of Credit (except for
changes in the rate of tax on, or determined by reference to, the net income or
net profits of such Issuing Bank or such Participant pursuant to the laws of
the jurisdiction in which it is organized or in which its principal office or
applicable lending office is located or any subdivision thereof or therein),
then, upon the delivery of the certificate referred to below to the Borrower by
any Issuing Bank or any Participant (a copy of which certificate shall be sent
by such Issuing Bank or such Participant to the Administrative Agent), the
Borrower agrees to pay to such Issuing Bank or such Participant such additional
amount or amounts as will compensate such Issuing Bank or such Participant for
such increased cost or reduction in the amount receivable or reduction on the
rate of return on its capital.  Any
Issuing Bank or any Participant, upon determining that any additional amounts
will be payable to it pursuant to this Section 2.03(f), will give prompt
written notice thereof to the Borrower, which notice shall include a
certificate submitted to the Borrower by such Issuing Bank or such Participant
(a copy of which certificate shall be sent by such Issuing Bank or such
Participant to the Administrative Agent), setting forth in reasonable detail
the basis for the calculation of such additional amount or amounts necessary to
compensate such Issuing Bank or such Participant.  The certificate required to be delivered
pursuant to this Section 2.03 shall, absent manifest error, be final and
conclusive and binding on the Borrower.

 

(g)                                 Cash
Collateralization.  If any
Letters of Credit remain outstanding at any time (i) while an Event of
Default has occurred and is continuing, (ii) that the Aggregate 

 

59

 

Exposure exceeds the
Borrowing Base or (iii) less than thirty (30) Business Days prior to the
Original Termination Date or Extended Termination Date, as applicable, and
arrangements satisfactory to the Administrative Agent and the applicable
Issuing Banks have not been made for a “backstop letter of credit” facility,
then the Borrower shall, at each Issuing Bank’s or the Administrative Agent’s
request, on the next Business Day cash collateralize the Available LC Amount of
all outstanding Letters of Credit by depositing in the Cash Collateral Account
an amount in cash equal to 105% of the Available LC Amount as of such date plus
any accrued and unpaid interest thereon; provided that the obligation to
deposit such cash collateral shall become effective immediately, and such
deposit shall become immediately due and payable, without demand or other
notice of any kind, if any Letters of Credit remain outstanding and undrawn on
the Termination Date and a “backstop letter of credit” reasonably acceptable to
each Issuing Bank shall not have been provided as collateral for such Letters
of Credit.  Such deposit shall be held by
the Administrative Agent as collateral for the payment and performance of the
Obligations of the Borrower under this Agreement.  The Administrative Agent shall have exclusive
dominion and control, including the exclusive right of withdrawal, over such
Cash Collateral Account.  Any funds
standing to the credit of such Cash Collateral Account shall be applied by the
Administrative Agent to reimburse the relevant Issuing Bank for Letter of
Credit Disbursements for which it has not been reimbursed and, to the extent
not so applied, shall be held for the satisfaction of the reimbursement
obligations of the Borrower for the Available LC Amount at such time. If the
Borrower fails to provide any cash collateral as required hereunder, the
Lenders may (and shall upon direction of the Administrative Agent) advance, as Revolving
Credit Advances, the amount of the cash collateral required (whether or not the
Termination Date shall have occurred or the conditions in Article III are
not are satisfied).

 

SECTION 2.04.Repayment
of Advances.  (a)  Last Out
Term Advances.  The Borrower shall
repay to the Administrative Agent for the ratable account of the Last Out Term
Lenders the aggregate outstanding principal amount of the Last Out Term
Advances on the Termination Date provided, however, that no
repayment or prepayment of Last Out Term Advances may be made until the First
Out Final Payment Date has occurred.

 

(b)                                 Revolving
Credit Advances.  The
Borrower shall repay to the Administrative Agent for the ratable account of the
Lenders on the Termination Date the aggregate outstanding principal amount of
the Revolving Credit Advances then outstanding.

 

(c)                                  Swingline
Advances.  The
Borrower shall repay to the Administrative Agent for the account of the
Swingline Bank the outstanding principal amount of each Swingline Advance made
by it on the earlier of the maturity date specified in the applicable Notice of
Swingline Borrowing (which maturity shall be no later than the seventh day
after the requested date of such Swingline Advance) and the Termination Date.

 

SECTION 2.05.Termination
or Reduction of Commitments.  (a) 
Optional.  The Borrower may, upon
at least two Business Days’ notice to the Administrative Agent, terminate in
whole or reduce in part the Unused Revolving Credit Commitments; provided,
however, that each partial reduction of the DIP Facility (i) shall
be in an aggregate amount of $1,000,000 or an integral multiple of $500,000 in
excess thereof and (ii) shall be made ratably among the Lenders in
accordance with their Revolving Credit Commitments with respect to such DIP
Facility.

 

60

 

(b)                                 Mandatory.  (i) The Last Out Term Commitment of each
Lender shall terminate in its entirety on the Closing Date (after giving effect
to the incurrence of Last Out Term Advances on such date).

 

(ii)                                  The DIP
Facility (and the Revolving Credit Commitment of each Lender) shall terminate
in its entirety on the Termination Date.

 

SECTION 2.06.Prepayments.  (a) Optional.  The Borrower may, on same Business Day’s
notice in the case of Base Rate Advances and one Business Day’s notice in the
case of Eurodollar Rate Advances, in each case to the Administrative Agent
stating the proposed date and aggregate principal amount of the prepayment, and
if such notice is given the Borrower shall, prepay the outstanding aggregate
principal amount of the Advances comprising part of the same Borrowing in whole
or ratably in part, together with accrued interest to the date of such
prepayment on the aggregate principal amount prepaid; provided, however,
that (x) each partial prepayment shall be in an aggregate principal amount
of $1,000,000 or an integral multiple of $500,000 in excess thereof and (y) if
any prepayment of a Eurodollar Rate Advance is made on a date other than the
last day of an Interest Period for such Advance, the Borrower shall also pay
any amounts owing pursuant to Section 8.04(c).  No Last Out Term Advances may be prepaid in
whole or in part prior to the First Out Final Payment Date.  On or after the occurrence of the First Out
Final Payment Date, Last Out Term Advances may be prepaid in accordance with
the provisions of this paragraph (a).

 

(b)                                 Mandatory.  (i) On any day on which (A) (x) the
Aggregate Exposure at such time exceeds (I) the Total Revolving Credit
Commitment at such time minus (II) the Specified Reserve at such
time, and/or (y) the aggregate Swingline Advances outstanding at such time
exceeds the Swingline Sub-Limit and/or (z) the aggregate Letter of Credit
Outstandings at such time exceeds the Letter of Credit Sub-Limit or (B) the
Aggregate Exposure exceeds the Borrowing Base at such time, the Borrower shall
repay the First Out Advances in an amount equal to or greater than such excess
(and if the amount of such excess is greater than the then aggregate
outstanding principal amount of the First Out Advances and the Letter of Credit
Outstandings, the Borrower shall cash collateralize outstanding Letters of
Credit in accordance with Section 2.03(g) to the extent necessary) so
that the Aggregate Exposure at such time no longer exceeds (I) the Total
Revolving Credit Commitment at such time minus (II) the Specified
Reserve at such time, the aggregate Swingline Advances outstanding at such time
no longer exceed the Swingline Sub-Limit, the aggregate Letter of Credit
Outstandings at such time no longer exceed the Letter of Credit Sub-Limit or
the Aggregate Exposure no longer exceeds the Borrowing Base, as the case may
be.

 

(ii)                                  The Borrower
shall, on the date of receipt of Net Cash Proceeds by any Loan Party or any of
its Subsidiaries from (x) the sale, lease, transfer or other disposition
(other than inventory sold in the ordinary course of business) of any assets of
the Borrower or any Loan Party or any of their respective Subsidiaries (in each
case, other than any non-Debtor Subsidiary), or (y) any Recovery Event,
apply all such Net Cash Proceeds which, in either case exceed $2,500,000 in
aggregate during the term of the DIP Facility, to prepay an aggregate principal
amount of the Advances comprising part of the same Borrowings equal to 100% of
the amount by which such Net Cash Proceeds, when aggregated with the amount of
all other Net Cash Proceeds previously received by the Borrower or any Loan
Party or any of their respective 

 

61

 

Subsidiaries (in each case, other than any
non-Debtor Subsidiary), exceed $2,500,000 during the term of the DIP Facility.
Each such prepayment shall be applied as set forth in clause (iii) below.

 

(iii)                               Prepayments of
Advances made pursuant to clause (i) of this Section 2.06(b),
applications of Net Cash Proceeds required to be made pursuant to clause (ii) of
this Section 2.06(b) and the application of all collected amounts
held in the Core Concentration Account during any Dominion Period shall be
applied, first, (x) if no Event of Default is continuing, to prepay
Letter of Credit Advances then outstanding until such Letter of Credit Advances
are paid in full, and (y) if an Event of Default is continuing, to prepay
Letter of Credit Advances then outstanding until such Letter of Credit Advances
are paid in full and then to the Cash Collateral Account until the Available LC
Amount of all outstanding Letters of Credit is cash collateralized to the
extent required pursuant to Section 2.03(g), second, to prepay
Swingline Advances then outstanding until such Swingline Advances are paid in
full, third, ratably to prepay Revolving Credit Advances then
outstanding comprising part of the same Borrowings until all Revolving Credit
Advances are paid in full, and, fourth, (x) prior to the occurrence
of the First Out Final Payment Date, unless an Event of Default is continuing,
to the Borrower for use by the Borrower in accordance with Section 2.14, provided
that the Borrower shall not be permitted to transfer amounts to any Excluded
Account that is a petty cash account or to any other Excluded Account in an
amount which exceeds the amount required to fund the activities for which funds
deposited in such Excluded Account are applied as set forth in the most recent
DIP Budget delivered to the Administrative Agent in accordance with Section 5.03(e) and
(y) on or after the occurrence of the First Out Final Payment Date,
ratably to the outstanding aggregate principal amount of the Last Out Term
Advances.

 

(iv)                              All prepayments
under this subsection (b) shall be made together with accrued interest to
the date of such prepayment on the principal amount prepaid.

 

(v)                                 Notwithstanding
any of the other provisions of this Section 2.06(b), so long as no Default
under Section 6.01(a) or Event of Default shall have occurred and be
continuing, if any prepayment of Eurodollar Rate Advances is required to be
made under this Section 2.06(b) other than on the last day of the
Interest Period therefor, the Borrower may, in its sole discretion, deposit the
amount of any such prepayment otherwise required to be made hereunder into the
Cash Collateral Account of the Borrower until the last day of such Interest
Period, at which time the Administrative Agent shall be authorized (without any
further action by or notice to or from the Borrower) to apply such amount to
the prepayment of such Advances in accordance with this Section 2.06(b).

 

SECTION 2.07.Interest.  (a)  Scheduled Interest.  The Borrower shall pay interest on the unpaid
principal amount of each Advance owing by it to each Lender from the date of
such Advance until such principal amount shall be paid in full, at the
following rates per annum:

 

(i)                                     Base Rate Advances.  During such periods as such Advance is a Base
Rate Advance, a rate per annum equal at all times to the sum of (A) the
Base Rate in effect from time to time plus (B) the Applicable Margin in
effect from time to time, payable (x) in arrears monthly on the last
Business Day of each month during such periods and (y) at maturity
(whether by acceleration or otherwise) and, after such maturity, on demand, 

 

62

 

subject, however, to the provisions of subsection (b) of this Section 2.07.

 

(ii)                                  Eurodollar Rate Advances.  During such periods as such Advance is a Eurodollar
Rate Advance, a rate per annum equal at all times during each Interest Period
for such Advance to the sum of (A) the Eurodollar Rate for such Interest
Period for such Advance plus (B) the Applicable Margin in effect on the
first day of such Interest Period, payable in arrears on each Interest Payment
Date and on the date such Eurodollar Rate Advance shall be Converted, subject,
however, to the provisions of subsection (b) of this Section 2.07.

 

(b)                                 Default
Interest.  At the
election of the Majority Lenders, in the case of amounts owing in respect of
the First Out Obligations, or the Last Out Requisite Lenders, in the case of
amounts owing in respect of the Last Out Obligations, upon the occurrence and
continuation of an Event of Default, to the extent permitted by law, principal
and interest in respect of each Advance and any other amount payable hereunder
and under any other Loan Document shall, in each case, bear interest at a rate
per annum equal to the greater of (x) in the case of principal and interest
in respect of an Advance, the rate which is 2% in excess of the rate then borne
by such Advances or Letters of Credit and (y) in all other cases, the rate
which is 2% in excess of the rate otherwise applicable to Base Rate Advances
from time to time.  Interest that accrues
under this Section 2.07(b) shall be payable on demand; provided
that prior to the First Out Final Payment Date, additional default interest
that accrues under this Section 2.07(b) in respect of any Last Out
Obligation shall not be payable (and no demand therefor shall be made) in cash
but shall be paid in kind.

 

(c)                                  Notice of
Interest Rate.  Promptly
after receipt of a Notice of Last Out Term Borrowing pursuant to Section 2.02(a) or
a Notice of Revolving Credit Borrowing pursuant to Section 2.02(b), the
Administrative Agent shall give notice to the Borrower and each Lender to which
such Notice of Last Out Term Borrowing or Notice of Revolving Credit Borrowing,
as the case may be, of the applicable interest rate determined by the Administrative
Agent for purposes of clause (a)(i) or (ii).

 

(d)                                 Interest Rate
Determination. Upon each Interest Determination Date, the
Administrative Agent shall determine the Eurodollar Rate for each Interest
Period applicable to the respective Eurodollar Rate Advances and shall promptly
notify the Borrower and the Lenders thereof. 
Each such determination shall, absent manifest error, be final and
conclusive and binding on all parties hereto. 
If on any Interest Determination Date, the Administrative Agent determines
that, by reason of any changes arising after the date of this Agreement
affecting the interbank Eurodollar market, adequate and fair means do not exist
for ascertaining the applicable interest rate on the basis provided for in the
definition of Eurodollar Rate, the Administrative Agent shall forthwith notify
the Borrower and the Lenders that the interest rate cannot be determined for
such Eurodollar Rate Advances and (A) each such Eurodollar Rate Advance
will automatically, on the last day of the then existing Interest Period
therefor, convert into a Base Rate Advance (or if such Advance is then a Base
Rate Advance, will continue as a Base Rate Advance), and (B) the
obligation of the Lenders to make, or to Convert Advances into, Eurodollar Rate
Advances shall be suspended until the Administrative Agent shall notify the
Borrower and the Lenders that the circumstances causing such suspension no
longer exist.

 

63

 

SECTION 2.08.Fees:
Last Out Yield Enhancement.  (a) Commitment
Fee.  The Borrower shall pay to the
Administrative Agent for the account of each Revolving Credit Lender having a
Revolving Credit Commitment a commitment fee, from the date hereof in the case
of each Initial Revolving Credit Lender and from the effective date specified
in the Assignment and Acceptance pursuant to which it became a Revolving Credit
Lender in the case of each other Revolving Credit Lender until the Termination
Date, payable in arrears on the date of the initial Borrowing hereunder, and
thereafter monthly on the last Business Day of each month and on the
Termination Date, at the rate per annum equal to the Applicable Percentage of
the sum of the daily Unused Revolving Credit Commitment plus in respect
of each Revolving Credit Lender, other than the Swingline Bank, its Pro Rata
Share of the daily outstanding Swingline Advances during such month; provided,
however, that no commitment fee shall accrue on any of the Revolving Credit
Commitments of a Defaulting Lender so long as such Revolving Credit Lender
shall be a Defaulting Lender.

 

(b)                                 Letter of
Credit Fees, Etc.  (i) The
Borrower shall pay to the Administrative Agent for the account of each
Revolving Credit Lender a commission, payable in arrears monthly on the last
Business Day of each month, on the earliest to occur of the full drawing under,
expiration, termination or cancellation of any Letter of Credit and on the
Termination Date, on such Revolving Credit Lender’s Pro Rata Share of the daily
aggregate Available LC Amount of all Letters of Credit outstanding from time to
time at a rate per annum equal to the Applicable Margin for Eurodollar Rate
Advances under the DIP Facility then in effect.

 

(ii)                                  The Borrower
shall pay to each Issuing Bank, for its own account, (A) a fronting fee,
payable in arrears monthly on the last Business Day of each month, on the
earliest to occur of the full drawing under, expiration, termination or
cancellation of any such Letter of Credit and on the Termination Date, on the
daily aggregate Available LC Amount of all Letters of Credit outstanding from
time to time issued by it at the rate of 0.25% per annum and (B) such
other reasonable and customary commissions, transfer fees and other fees and
charges in connection with the issuance or administration of each Letter of
Credit as the Borrower and such Issuing Bank shall agree.

 

(c)                                  Administrative
Agent’s Fees.  The
Borrower shall pay to the Administrative Agent for its own account such fees as
may from time to time be agreed between the Borrower and the Administrative
Agent in the amounts and at the times so specified.  Such fees shall be fully earned when paid and
shall not be refundable for any reason whatsoever (except as expressly agreed
between the Borrower and the Administrative Agent).

 

(d)                                 Other Fees.  The Borrower shall pay to the Administrative
Agent for the account of the Lead Arranger and the Initial Revolving Credit
Lenders entitled thereto, respectively, such fees as may from time to time be
agreed between the Borrower and the Lead Arranger and the Initial Revolving
Credit Lenders in the amounts and at the times so specified.  Such fees shall be fully earned when paid and
shall not be refundable for any reason whatsoever (except as expressly agreed
between the Borrower and the Administrative Agent).

 

(e)                                  Last Out Yield
Enhancement.  The
Borrower shall pay to the Administrative Agent for the account of the Last Out
Term Lenders entitled thereto, yield 

 

64

 

enhancement, in such amounts
and at such times as may be specified in the Enhanced Yield Letter Agreement.

 

SECTION 2.09.Conversion
of Advances.  (a)  Optional.  The Borrower may on any Business Day, upon
notice given to the Administrative Agent not later than 12:00 P.M. (New
York City time) on the third Business Day prior to the date of the proposed
Conversion and subject to the provisions of Sections 2.07 and 2.10, Convert all
or any portion of the Advances of one Type owed by it comprising the same
Borrowing into Advances of the other Type (other than Swingline Advances which
may not be Converted pursuant to this Section 2.09); provided, however,
that (i) any Conversion of Eurodollar Rate Advances into Base Rate
Advances shall be made only on the last day of an Interest Period for such
Eurodollar Rate Advances, (ii) any Conversion of Base Rate Advances into
Eurodollar Rate Advances shall be in an amount not less than the minimum amount
specified in Section 2.02(e), (iii) no Conversion of any Advances
shall result in more separate Borrowings than permitted under Section 2.02(e) and
(iv) each Conversion of Advances comprising part of the same Borrowing
under a Facility shall be made ratably among the Lenders in accordance with
their Commitments under such Facility. 
Each such notice of Conversion shall, within the restrictions specified
above, specify (i) the date of such Conversion, (ii) the Advances to
be Converted and (iii) if such Conversion is into Eurodollar Rate
Advances, the duration of the initial Interest Period for such Advances.  Each notice of Conversion shall be
irrevocable and binding on the Borrower.

 

(b)                                 Mandatory.  (i) On the date on which the aggregate
unpaid principal amount of Eurodollar Rate Advances comprising any Borrowing
shall be reduced, by payment or prepayment or otherwise, to less than
$1,000,000, such Eurodollar Rate Advances shall automatically Convert into Base
Rate Advances.

 

(ii)                                  Upon the
occurrence and during the continuance of any Default under Section 6.01(a),
(x) each Eurodollar Rate Advance will automatically, on the last day of
the then existing Interest Period therefor, Convert into a Base Rate Advance
and (y) the obligation of the Lenders to make, or to Convert Advances
into, Eurodollar Rate Advances shall be suspended.

 

SECTION 2.10.Increased
Costs, Etc.  (a)  In the event
that, due to either (i) the introduction of or any change (other than any
change by way of imposition or increase of reserve requirements included in the
Eurodollar Rate Reserve Percentage) in or in the interpretation or administration
of any applicable law or regulation after the Closing Date, (ii) the
compliance with any applicable guideline or request from the NAIC or any
central bank or other Governmental Authority (whether or not having the force
of law) or (iii) any other circumstance affecting the interbank Eurodollar
market or the position of any Lender Party in such market which leads such
Lender Party to reasonably determine that the Eurodollar Rate for any Interest
Period for any Eurodollar Rate Advance made by such Lender Party will not
adequately reflect the cost to such Lender of making, funding or maintaining
such Eurodollar Rate Advance for such Interest Period, there shall be any
increase in the cost to or reduction in the amount received or receivable by
any Lender Party as a result of agreeing to make or of making, funding or
maintaining Eurodollar Rate Advances (excluding for purposes of this Section 2.10
any such increased costs resulting from (A) Taxes or Other Taxes (as to
which Section 2.12 shall govern) and (B) changes in the basis of
taxation of overall net income or overall gross income by the 

 

65

 

United States or
by the foreign jurisdiction or state under the laws of which such Lender Party
is organized or has its Lending Office or any political subdivision thereof),
then the Borrower shall from time to time, upon demand by such Lender Party
(with a copy of such demand to the Administrative Agent), pay to the
Administrative Agent for the account of such Lender Party additional amounts
(in the form of an increased rate of, or a different method of calculating,
interest or otherwise as such Lender Party, in its reasonable discretion, shall
determine) sufficient to compensate such Lender Party for such increased cost; provided,
however, that a Lender Party claiming additional amounts under this Section 2.10(a) agrees
to use reasonable efforts (consistent with its internal policy and legal and
regulatory restrictions) to designate a different Lending Office for any Advances
affected by such event if the making of such a designation would avoid the need
for, or reduce the amount of, such increased cost that may thereafter accrue;
provided that such designation is made on terms that such Lender Party 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
this subsection (a).  A certificate as to
the amount of such increased cost and showing in reasonable detail the basis
for the calculation thereof, submitted to the Borrower by such Lender Party at
the time of demand, shall be conclusive and binding for all purposes, absent
manifest error.

 

(b)                                 If, due to
either (i) the introduction of or any change in or in the interpretation
or administration of any applicable law or regulation after the Closing Date or
(ii) the compliance with any applicable guideline or request from any
central bank or other governmental authority (whether or not having the force
of law), there shall be any increase in the amount of capital required or
expected to be maintained by any Lender Party or any corporation controlling
such Lender Party which has or would have the effect of reducing the rate of
return on such Lender Party’s capital or assets as a result of or based upon
the existence of such Lender Party’s commitments and obligations under this
Agreement to a level below that which such Lender Party could have achieved but
for such change or compliance (taking into consideration such Lender Party’s or
any corporation controlling such Lender Party’s policies with respect to
capital adequacy), then, upon demand by such Lender Party (with a copy of such
demand to the Administrative Agent), the Borrower shall pay to the
Administrative Agent for the account of such Lender Party, from time to time as
specified by such Lender Party, additional amounts sufficient to compensate
such Lender Party in the light of such circumstances, it being understood and
agreed that a Lender Party shall not be entitled to such compensation as a
result of such Lender Party’s compliance with, or pursuant to any request or
directive to comply with, any such law, regulation, guideline or request in
effect on the Closing Date.  Any amount
payable pursuant to this Section 2.10(b) shall be payable only to the
extent that such Lender Party reasonably determines such increase in capital to
be allocable to the existence of such Lender Party’s commitment to lend or to
issue Letters of Credit hereunder or to the issuance or maintenance of any
Letters of Credit.  A certificate as to
such amounts and showing in reasonable detail the basis for the calculation
thereof submitted to the Borrower by such Lender Party at the time of demand
shall be conclusive and binding for all purposes, absent manifest error.

 

(c)                                  Notwithstanding
any other provision of this Agreement, if the introduction of or any change in
or in the interpretation of any law or regulation shall make it unlawful, or
any central bank or other governmental authority shall assert that it is
unlawful, for any Lender or its Lending Office to perform its obligations
hereunder to make Eurodollar Rate Advances or to 

 

66

 

continue to fund or maintain
Eurodollar Rate Advances hereunder, with respect to any Eurodollar Rate Advance
affected by circumstances described in this subsection (c), the Borrower will,
and with respect to any Eurodollar Rate Advance affected by circumstances
described in subsections (a) or (b) above, the Borrower may, either (i) on
the last day of the then existing Interest Period therefor, convert each
Eurodollar Rate Advance affected by such circumstances into a Base Rate Advance
or (ii) if the affected Eurodollar Rate Advance is then being made
pursuant to a Borrowing, cancel such 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 Party pursuant to subsection (a) or
(b) above or this subsection (c) (as applicable); provided
that if more than one Lender Party is affected at any time, then all affected
Lender Parties must be treated in the same manner pursuant to this Section 2.10(c).  In the event of an illegality as described in
this subsection (c) the obligation of the Lenders to make, or to Convert
Advances into, Eurodollar Rate Advances shall be suspended until the
Administrative Agent shall notify the Borrower that such Lender has determined
that the circumstances causing such suspension no longer exist; provided,
however, that, before making any such demand, such Lender Party agrees
to use reasonable efforts (consistent with its internal policy and legal and
regulatory restrictions) to designate a different Lending Office for any
Advances affected by such event if the making of such a designation would allow
such Lender Party or its Lending Office to continue to perform its obligations
to make Eurodollar Rate Advances or to continue to fund or maintain Eurodollar
Rate Advances; provided that such designation is made on terms that such
Lender Party 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 this subsection.

 

SECTION 2.11.Payments
and Computations.  (a)  The
Borrower shall make each payment owed by it hereunder and under the Notes,
irrespective of any right of counterclaim or set-off (except as otherwise
provided in Section 2.15), not later than 12:00 P.M. (New York City
time) on the day when due in U.S. Dollars to the Administrative Agent at the
Administrative Agent’s Account in same day funds.  The Administrative Agent will promptly
thereafter cause like funds to be distributed (i) if such payment by the
Borrower is in respect of principal, interest, commitment fees or any other
Obligation then payable hereunder and under the Notes to more than one Lender
Party, to such Lender Parties for the account of their respective Lending
Offices ratably in accordance with the amounts of such respective Obligations
then payable to such Lender Parties and (ii) if such payment by the
Borrower is in respect of any Obligation then payable hereunder to one Lender
Party, to such Lender Party for the account of its Lending Office, in each case
to be applied in accordance with the terms of this Agreement.  Upon its acceptance of an Assignment and
Acceptance and recording of the information contained therein in the Register
pursuant to Section 8.07(d), from and after the effective date of such
Assignment and Acceptance, the Administrative Agent shall make all payments
hereunder and under the Notes in respect of the interest assigned thereby to
the Lender Party assignee thereunder, and the parties to such Assignment and
Acceptance shall make all appropriate adjustments in such payments for periods
prior to such effective date directly between themselves.

 

(b)                                 If the
Administrative Agent receives funds for application to the Obligations under
the Loan Documents under circumstances for which the Loan Documents do not
specify the Advances to which, or the manner in which, such funds are to be
applied, the 

 

67

 

Administrative Agent may,
but shall not be obligated to, elect to distribute such funds to each Lender Party
ratably in accordance with such Lender Party’s proportionate share of the
principal amount of all outstanding Advances and all Letter of Credit
Outstandings, in repayment or prepayment of such of the outstanding Advances or
other Obligations owed to such Lender Party as the Administrative Agent shall
direct.

 

(c)                                  The Borrower
hereby authorizes each Lender Party, if and to the extent payment owed to such
Lender Party is not made when due hereunder or, in the case of a Lender, under
the Note held by such Lender, to charge from time to time against any or all of
the Borrower’s accounts with such Lender Party any amount so due.

 

(d)                                 All
computations of interest, fees and commissions shall be made by the
Administrative Agent on the basis of a year of 360 days, in each case for the
actual number of days (including the first day but excluding the last day)
occurring in the period for which such interest, fees or commissions are
payable; provided that (i) interest in respect of which the rate of
interest is calculated on the basis of clause (a) of the definition of
“Base Rate” contained in Section 1.01, (ii) commitment fees payable
pursuant to Section 2.08(a) and (iii) Letter of Credit fees
payable pursuant to Section 2.08(b) shall be calculated on the basis
of a year of 365 (or 366, as the case may be) days for the actual number of
days elapsed.

 

(e)                                  Whenever any
payment hereunder or under the Notes shall be stated to be due on a day other
than a Business Day, such payment shall be made on the next succeeding Business
Day, and such extension of time shall in such case be included in the
computation of payment of interest or commitment fee, as the case may be; provided,
however, that, if such extension would cause payment of interest on or
principal of Eurodollar Rate Advances to be made in the next following calendar
month, such payment shall be made on the next preceding Business Day.

 

(f)                                    Unless the
Administrative Agent shall have received notice from the Borrower prior to the
date on which any payment is due to any Lender Party hereunder that the
Borrower will not make such payment in full, the Administrative Agent may
assume that the Borrower has made such payment in full to the Administrative
Agent on such date and the Administrative Agent may, in reliance upon such
assumption, cause to be distributed to each such Lender Party on such due date
an amount equal to the amount then due such Lender Party.  If and to the extent the Borrower shall not
have so made such payment in full to the Administrative Agent, each such Lender
Party shall repay to the Administrative Agent forthwith on demand such amount
distributed to such Lender Party together with interest thereon, for each day
from the date such amount is distributed to such Lender Party until the date
such Lender Party repays such amount to the Administrative Agent, at the
Federal Funds Rate.

 

(g)                                 Notwithstanding
anything herein to the contrary (including, without limitation, Section 2.11(a)),
the Borrower shall pay interest on the Last Out Term Advances in accordance
with Section 2.20(c).

 

SECTION 2.12.Taxes.  (a)  Any and all payments by the
Borrower hereunder or under the Notes shall be made in accordance with Section 2.11,
free and clear of and without deduction for any and all present or future
taxes, levies, imposts, deductions, charges 

 

68

 

or withholdings,
and all liabilities with respect thereto, excluding (i) in the case
of each Lender Party and the Administrative Agent, (A) taxes that are
imposed on its overall net income by the United States and taxes that are
imposed on its overall net income by the state or other jurisdiction under the
laws of which such Lender Party or the Administrative Agent (as the case may
be) is organized or any political subdivision thereof and (B) any taxes
imposed on the Administrative Agent or any Lender Party as a result of a
current or former connection between the Administrative Agent or such Lender
Party, as the case may be, and the jurisdiction imposing such tax or any political
subdivision or taxing authority thereof or therein (other than any such
connection arising from the Administrative Agent or such Lender Party having
executed, delivered or performed its obligations or received any payment under,
or sought enforcement of, this Agreement) and (ii) in the case of each
Lender Party, taxes that are imposed on its overall net income (and franchise
taxes imposed in lieu thereof) by the state or other jurisdiction of such
Lender Party’s Lending Office or any political subdivision thereof (all such
non excluded taxes, levies, imposts, deductions, charges, withholdings and
liabilities in respect of payments hereunder or under the Notes being
hereinafter referred to as “Taxes”) unless the Borrower is required by
law or the interpretation or administration thereof to withhold or deduct
Taxes.  If the Borrower shall be required
by law or the interpretation or administration thereof by the relevant taxing
authority to deduct any Taxes from or in respect of any sum payable hereunder
or under any Note to any Lender Party or the Administrative Agent, (x) the
sum payable shall be increased as may be necessary so that after making all
required deductions (including deductions applicable to additional sums payable
under this Section 2.12) such Lender Party or the Administrative Agent (as
the case may be) receives an amount equal to the sum it would have received had
no such deductions been made, (y) the Borrower shall make such deductions
and (z) the Borrower shall pay the full amount deducted to the relevant
taxation authority or other authority in accordance with applicable law; provided,
however, that the Borrower shall not be required to increase any such
amounts otherwise payable to a Lender Party that is not organized under the
laws of the United States or a state thereof so long as such Lender Party fails
to comply with the requirements of subsection (e) below.

 

(b)                                 In addition,
the Borrower shall pay any present or future stamp, documentary, excise,
property or similar taxes, charges or levies that arise from any payment made
by it hereunder or under the Notes or from the execution, delivery or
registration of, performing under, or otherwise with respect to, this Agreement
or the Notes (hereinafter referred to as “Other Taxes”).

 

(c)                                  The Borrower
shall indemnify each Lender Party and the Administrative Agent for and hold it
harmless against the full amount of Taxes and Other Taxes, and for the full
amount of taxes of any kind imposed by any jurisdiction on amounts payable
under this Section 2.12, imposed on or paid by such Lender Party or the
Administrative Agent (as the case may be), and any liability (including
penalties, additions to tax, interest and expenses) arising therefrom or with
respect thereto that would not have arisen but for the Borrower’s failure to
pay any Taxes or Other Taxes when due to the appropriate taxing authority or
remit to the Administrative Agent the receipts or other documentary evidence
required under subsection (d) below. 
This indemnification shall be made within 30 days from the date such
Lender Party or the Administrative Agent (as the case may be) makes written
demand therefor.

 

69

 

(d)           Promptly after the date of any
payment of Taxes, the Borrower shall furnish to the Administrative Agent, at
its address referred to in Section 8.02, the original or a certified copy
of a receipt evidencing such payment.  In
the case of any payment hereunder or under the Notes by or on behalf of the
Borrower through an account or branch outside the United States or by or on
behalf of the Borrower by a payor that is not a United States person, if the
Borrower determines that no Taxes are payable in respect thereof, the Borrower
shall furnish, or shall cause such payor to furnish, to the Administrative
Agent, at such address, an opinion of counsel reasonably acceptable to the
Administrative Agent stating that such payment is exempt from Taxes.  For purposes of this subsection (d) and
subsection (e), the terms “United States” and “United States person” shall have
the meanings specified in Section 7701 of the Internal Revenue Code.

 

(e)           Each Lender Party organized under the
laws of a jurisdiction outside the United States shall, on or prior to the date
of its execution and delivery of this Agreement in the case of each Initial
Lender or Initial Issuing Bank, as the case may be, and on the date of the
Assignment and Acceptance pursuant to which it becomes a Lender Party in the
case of each other Lender Party, and from time to time thereafter as requested
in writing by the Borrower (but only so long thereafter as such Lender Party
remains lawfully able to do so), provide each of the Administrative Agent and
the Borrower with two original properly completed and duly executed Internal
Revenue Service Forms W-8BEN or W-8ECI or (in the case of a Lender Party that
has certified in writing to the Administrative Agent that it is not (i) a
“bank” as defined in Section 881(c)(3)(A) of the Internal Revenue
Code), (ii) a 10-percent shareholder (within the meaning of Section 871(h)(3)(B) of
the Internal Revenue Code) of the Borrower or (iii) a controlled foreign
corporation related to the Borrower (within the meaning of Section 864(d)(4) of
the Internal Revenue Code), Internal Revenue Service Form W-8BEN, as
appropriate, or any successor or other form prescribed by the Internal Revenue
Service, certifying that such Lender Party is exempt from or entitled to a
reduced rate of United States withholding tax on payments pursuant to this
Agreement or the Notes or, in the case of a Lender Party that has certified
that it is not a “bank” as described above, certifying that such Lender Party
is a foreign corporation, partnership, estate or trust.  Each such Lender Party hereby agrees, from
time to time after the initial delivery by such Lender Party of such forms or
certificates, whenever a lapse in time or change in circumstances renders such
forms or certificates obsolete or inaccurate in any material respect, that such
Lender Party shall promptly (i) deliver to the Borrower and the
Administrative Agent two new original copies of Internal Revenue Service Forms
W-8BEN or W-8ECI, or (in the case of a Lender Party that has certified in writing
to the Administrative Agent that it is not (A) a “bank” as defined in Section 881(c)(3)(A) of
the Internal Revenue Code), (B) a 10-percent shareholder (within the
meaning of Section 871(h)(3)(B) of the Internal Revenue Code) of the
Borrower or (C) a controlled foreign corporation related to the Borrower
(within the meaning of Section 864(d)(4) of the Internal Revenue
Code), as appropriate, properly completed and duly executed by such Lender
Party or (ii) notify the Administrative Agent and the Borrower of its
inability to deliver any such forms or certificates.  If the forms provided by a Lender Party at
the time such Lender Party first becomes a party to this Agreement indicates a
United States interest withholding tax rate in excess of zero, withholding tax
at such rate shall be considered excluded from Taxes unless and until such
Lender Party provides the appropriate form certifying that a lesser rate
applies, whereupon withholding tax at such lesser rate only shall be considered
excluded from Taxes for periods governed by such form; provided, however,
that, if at the date of the Assignment and Acceptance pursuant to which a
Lender Party becomes a party to this 

 

70

 

Agreement, the Lender Party
assignor was entitled to payments under subsection (a) in respect of
United States withholding tax with respect to interest paid at such date, then,
to such extent, the term Taxes shall include (in addition to withholding taxes
that may be imposed in the future or other amounts otherwise includable in
Taxes) United States withholding tax, if any, applicable with respect to the
Lender Party assignee on such date.  If
any form or document referred to in this subsection (e) requires the
disclosure of information, other than information necessary to compute the tax
payable and information required on the date hereof by Internal Revenue Service
form W-8BEN or W-8ECI or the related certificate described above, that the
Lender Party reasonably considers to be confidential, the Lender Party shall
give notice thereof to the Borrower and shall not be obligated to include in
such form or document such confidential information.

 

(f)            For any period with respect to which
either (i) a Lender Party has failed to provide the Borrower with the
appropriate form, certificate or other document described in subsection (e) above
(other than if such failure is due to a change in law occurring after the date
on which a form, certificate or other document originally was required to be
provided or if such form otherwise is not required under subsection (e) above)
or (ii) any representation or certification made by a Lender Party
pursuant to subsection (e) or (f) above is incorrect in any material
respect 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 of such
representation or certification when made), such Lender Party shall not be
entitled to indemnification under subsection (a) or (c) with respect
to Taxes imposed by the United States by reason of such failure or
incorrectness, as the case may be; provided, however, that should
a Lender Party become subject to Taxes because of its failure to deliver a
form, certificate or other document required hereunder, the Borrower shall take
such steps as such Lender Party shall reasonably request to assist such Lender
Party to recover such Taxes.

 

(g)           Any Lender Party claiming any
additional amounts payable pursuant to this Section 2.12 agrees to use
reasonable efforts (consistent with its internal policy and legal and
regulatory restrictions) to change the jurisdiction of its Lending Office or
designate a different Lending Office if the making of such a change or
designation would avoid the need for, or reduce the amount of, any such
additional amounts that may thereafter accrue; provided that such change
or designation is made on terms that such Lender Party 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
subsection (a) or (c) above; provided  further that
nothing in this subsection (g) shall affect or postpone any of the
obligations of the Borrower or the rights of any Lender Party pursuant to this Section 2.12.

 

(h)           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 Party or the
Administrative Agent, as applicable, shall cooperate with the Borrower in
challenging such taxes at the Borrower’s expense if so requested by the
Borrower.  If any Lender Party or the
Administrative Agent, as applicable, receives a refund of a tax for which a
payment has been made by the Borrower pursuant to this Section, which refund in
the good faith judgment of such Lender Party or Administrative Agent, as the
case may be, is attributable to such payment made by the Borrower, then the
Lender Party or the Administrative Agent, as the case may be, shall reimburse
the Borrower for such amount as the Lender Party or the 

 

71

 

Administrative Agent, as the
case may be, 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. 
If a Lender Party or the Administrative Agent is required to return all
or a portion of any refund for which reimbursement was made under the preceding
sentence to the authority that granted such refund, the Borrower shall pay over
to such Lender Party or the Administrative Agent, as the case may be, the
portion of such reimbursement as will leave such Lender Party or the Administrative
Agent, as the case may be, in no better or worse position than if no such
reimbursement had been made.  A Lender
Party or the Administrative Agent shall claim any refund that it determines in
good faith is available to it, unless it concludes in its reasonable discretion
that it would be adversely affected by making such a claim; provided, however,
that each Lender Party and the Administrative Agent shall be fully justified in
refusing to claim any such refund, unless, if it so requests, it shall first be
indemnified to its satisfaction against any expense that may be incurred by it
in connection therewith.  Nothing herein
contained shall interfere with the right of a Lender or the Administrative
Agent to arrange its tax affairs in whatever manner it thinks fit nor oblige
any Lender or the Administrative Agent to disclose any information relating to
its tax affairs or any computations in respect thereof or require any Lender or
the Administrative Agent to do anything that would prejudice its ability to
benefit from any other reliefs, remissions or repayments to which it may be
entitled.

 

(i)            Each Lender Party 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 United States Treasury regulations Section 1.881-3)
with respect to the Borrowings hereunder (other than a conduit financing
arrangement in which the Borrower, or an Affiliate thereof, is a financing
entity) unless the Borrower has consented to such arrangement prior thereto.

 

SECTION 2.13.Sharing
of Payments, Etc.  (a)  Subject
to the priority of payments specifically set forth herein or in any other Loan
Document and subject to the provisions of Sections 2.15, 2.20 and 8.07(f)(vi) hereof,
if any Lender Party shall obtain at any time any payment (whether voluntary,
involuntary, through the exercise of any right of set off, or otherwise) (a) on
account of Obligations due and payable to such Lender Party hereunder and under
the Loan Documents at such time in excess of its ratable share (according to
the proportion of (i) the amount of such Obligations due and payable to
such Lender Party at such time to (ii) the aggregate amount of the
Obligations due and payable to all Lender Parties hereunder and under the Loan
Documents at such time) of payments on account of the Obligations due and
payable to all Lender Parties hereunder and under the Loan Documents at such
time obtained by all the Lender Parties at such time or (b) on account of
Obligations owing (but not due and payable) to such Lender Party hereunder and
under the Loan Documents at such time in excess of its ratable share (according
to the proportion of (i) the amount of such Obligations owing to such
Lender Party at such time to (ii) the aggregate amount of the Obligations
owing (but not due and payable) to all Lender Parties hereunder and under the
Loan Documents at such time) of payments on account of the Obligations owing
(but not due and payable) to all Lender Parties hereunder and under the Loan
Documents at such time obtained by all of the Lender Parties at such time, such
Lender Party shall forthwith purchase from the other Lender Parties such
participations in the Obligations due and payable or owing to them, as the case
may be, as shall be necessary to cause such purchasing Lender Party to share
the excess payment ratably with each of them; provided, however,
that if all or any portion of such excess payment is thereafter 

 

72

 

recovered from such
purchasing Lender Party, such purchase from each other Lender Party shall be
rescinded and such other Lender Party shall repay to the purchasing Lender
Party the purchase price to the extent of such Lender Party’s ratable share
(according to the proportion of (i) the purchase price paid to such Lender
Party to (ii) the aggregate purchase price paid to all Lender Parties) of
such recovery together with an amount equal to such Lender Party’s ratable
share (according to the proportion of (i) the amount of such other Lender
Party’s required repayment to (ii) the total amount so recovered from the
purchasing Lender Party) of any interest or other amount paid or payable by the
purchasing Lender Party in respect of the total amount so recovered.  The Borrower agrees that any Lender Party so
purchasing a participation from another Lender Party pursuant to this Section 2.13
may, to the fullest extent permitted by law, exercise all its rights of payment
(including the right of set-off) with respect to such participation as fully as
if such Lender Party were the direct creditor of the Borrower in the amount of
such participation.  Notwithstanding
anything herein to the contrary, the foregoing provisions of this Section 2.13
shall be subject to the provisions of Section 2.20.

 

SECTION 2.14.Use
of Proceeds.  The proceeds of the
Last Out Term Advances, Revolving Credit Advances, Swingline Advances and
issuances of Letters of Credit shall be available and the Borrower agrees that
it shall use the proceeds of such Advances and request the issuance of Letters
of Credit):

 

(a)           for working capital requirements and
general corporate purposes relating to the Borrower’s and each Loan Party’s
operations and the Borrower’s non-Debtor Subsidiaries’ operations (and in the
case of issuance of Letters of Credit, other than to replace, or in
substitution for, Prepetition letters of credit issued under the Prepetition
Credit Agreement, and otherwise in accordance with the requirements of Section 2.03);

 

(b)           for payments of the fees and expenses
of the Loan Parties’ professionals and advisors as more fully described in Section 8.04(a);
and

 

(c)           for payments of the
fees and expenses of the professionals of any official committee appointed in
the Chapter 11 Cases,

 

in each case as provided for and in a manner
materially consistent with the most recent DIP Budget received by the
Administrative Agent (it being acknowledged that compliance with line item
amounts included in each DIP Budget shall be tested under Section 5.04
only) and in a manner consistent with the terms and conditions set forth in the
Interim Borrowing Order or (when entered) the Final Borrowing Order, as
applicable; provided that no portion of any Advance or any Letter of
Credit shall be used, directly or indirectly, (i) to make any payment or
prepayment that is prohibited under this Agreement, including any Prepetition
Payment to the extent prohibited hereunder, (ii) to pay any fees or
similar amounts to any Person who has proposed or may propose to purchase
assets of or interests in the Borrower or any other Loan Party or who otherwise
has proposed or may propose to invest in the Borrower or any other Loan Party
(including so-called “topping fees”, “exit fees” and similar amounts), it being
understood that payment of any such amounts from the proceeds of any such asset
purchase or investment shall not be deemed a breach of this clause (ii), (iii) to
make any distribution under a Reorganization Plan in any Chapter 11 Case, (iv) to
finance in any way any adversary action, suit, arbitration, proceeds,
application, motion or other litigation of any type relating to or in 

 

73

 

connection with the
Prepetition Credit Agreement or any of the other Prepetition Loan Documents or
instruments entered into in connection therewith, including, without
limitation, any challenges to the obligations under the Prepetition Credit
Agreement or the validity, perfection, priority or enforceability of any Lien
securing such claims or any payment thereunder, (v) to finance in any way
any action, suit, arbitration, proceeding, application, motion or other
litigation of any type adverse to the interests of the Administrative Agent and
the Lenders or their rights and remedies under this Agreement, the Loan Documents,
the Interim Borrowing Order or the Final Borrowing Order, (vi) to make any
payment in settlement of any claim, action or proceeding, before any court,
arbitrator or other governmental body, (vii) to pay any liabilities
arising on termination of any Reorganization Plan, (viii) to reduce,
terminate, or otherwise be applied to any Prepetition Debt of the Borrower or
any other Loan Party, other than payment of the Obligations under the
Prepetition Credit Agreement to the extent provided for in the Interim
Borrowing Order or (when entered) the Final Borrowing Order or as the
Bankruptcy Court may otherwise approve or (ix) to purchase or carry any
Margin Stock, directly or indirectly, or to extend credit for the purpose of
purchasing or carrying any such Margin Stock for the purpose of reducing or
retiring any indebtedness which was originally incurred to purchase or carry
any Margin Stock or for any other purpose which might cause any of Extensions
of Credit under this Agreement to be considered a “purpose credit” within the
meaning of Regulation T, U or X or otherwise violate any of the Regulations of
the Board.

 

The Administrative Agent (A) may assume that the
Loan Parties will comply with the DIP Budget, subject to the terms and
conditions set forth herein, (B) shall have no duty to monitor such
compliance and (C) shall not be obligated to pay (directly or indirectly
from the Collateral) any unpaid expenses incurred or authorized to be incurred
pursuant to any DIP Budget.  The line
items in the DIP Budget for payment of interest, expenses and other amounts to
the Lenders are estimates only, and the Loan Parties remain obligated to pay
any and all Obligations in accordance with the terms of the Loan
Documents.  Nothing in any DIP Budget
(including any estimates of a loan balance in excess of borrowing base
restrictions) shall constitute an amendment or other modification of this
Agreement or other lending limits set forth herein.

 

SECTION 2.15.Defaulting
Lenders.  (a)  In the event
that, at any one time, (i) any Lender Party shall be a Defaulting Lender, (ii) such
Defaulting Lender shall owe a Defaulted Advance to the Borrower and (iii) the
Borrower shall be required to make any payment hereunder or under any other
Loan Document to or for the account of such Defaulting Lender, then the
Borrower may, so long as no Default shall occur or be continuing at such time
and to the fullest extent permitted by applicable law, set off and otherwise
apply the Obligation of the Borrower to make such payment to or for the account
of such Defaulting Lender against the obligation of such Defaulting Lender to
make such Defaulted Advance.  In the
event that, on any date, the Borrower shall so set off and otherwise apply its
obligation to make any such payment against the obligation of such Defaulting
Lender to make any such Defaulted Advance on or prior to such date, the amount
so set off and otherwise applied by the Borrower shall constitute for all
purposes of this Agreement and the other Loan Documents an Advance by such Defaulting
Lender made on the date pursuant to which such Defaulted Advance was originally
required to have been made pursuant to Section 2.01.  Such Advance shall be a Base Rate Advance and
shall be considered, for all purposes of this Agreement, to comprise part of
the Borrowing in connection with which such Defaulted Advance was originally
required to have 

 

74

 

been made pursuant to Section 2.01,
even if the other Advances comprising such Borrowing shall be Eurodollar Rate
Advances on the date such Revolving Credit Advance is deemed to be made
pursuant to this subsection (a).  The
Borrower shall notify the Administrative Agent at any time the Borrower
exercises its right of set-off pursuant to this subsection (a) and shall
set forth in such notice (A) the name of the Defaulting Lender and the
Defaulted Advance required to be made by such Defaulting Lender and (B) the
amount set off and otherwise applied in respect of such Defaulted Advance
pursuant to this subsection (a).  Any
portion of such payment otherwise required to be made by the Borrower to or for
the account of such Defaulting Lender which is paid by the Borrower, after
giving effect to the amount set off and otherwise applied by the Borrower
pursuant to this subsection (a), shall be applied by the Administrative Agent
as specified in subsection (b) or (c) of this Section 2.15.

 

(b)           In the event that, at any one time, (i) any
Lender Party shall be a Defaulting Lender, (ii) such Defaulting Lender
shall owe a Defaulted Amount to the Administrative Agent or any of the other
Lender Parties and (iii) the Borrower shall make any payment hereunder or
under any other Loan Document to the Administrative Agent for the account of
such Defaulting Lender, then the Administrative Agent may, on its behalf or on
behalf of such other Lender Parties and to the fullest extent permitted by
applicable law, apply at such time the amount so paid by the Borrower to or for
the account of such Defaulting Lender to the payment of each such Defaulted
Amount to the extent required to pay such Defaulted Amount.  In the event that the Administrative Agent
shall so apply any such amount to the payment of any such Defaulted Amount on
any date, the amount so applied by the Administrative Agent shall constitute
for all purposes of this Agreement and the other Loan Documents payment, to
such extent, of such Defaulted Amount on such date.  Any such amount so applied by the
Administrative Agent shall be retained by the Administrative Agent or distributed
by the Administrative Agent to such other Lender Parties, ratably in accordance
with the respective portions of such Defaulted Amounts payable at such time to
the Administrative Agent and such other Lender Parties and, if the amount of
such payment made by the Borrower shall at such time be insufficient to pay all
such Defaulted Amounts owing by each such Defaulting Lender at such time to the
Administrative Agent and the other Lender Parties, in the following order of
priority:

 

(A)          first, to the Administrative
Agent for any such Defaulted Amount then owing by each such Defaulting Lender
to the Administrative Agent; and

 

(B)           second, to
any other Lender Parties for any such Defaulted Amounts then owing by each such
Defaulting Lender to such other Lender Parties, ratably in accordance with such
respective Defaulted Amounts then owing to such other Lender Parties.

 

Any portion of such amount paid by the Borrower for
the account of such Defaulting Lender remaining, after giving effect to the
amount applied by the Administrative Agent pursuant to this subsection (b),
shall be applied by the Administrative Agent as specified in subsection (c) of
this Section 2.15.

 

(c)           In the event that, at any one time, (i) any
Lender Party shall be a Defaulting Lender, (ii) such Defaulting Lender
shall not owe a Defaulted Advance or a 

 

75

 

Defaulted Amount and (iii) the
Borrower, the Administrative Agent or any other Lender Party shall be required
to pay or distribute any amount hereunder or under any other Loan Document to
or for the account of such Defaulting Lender, then the Borrower or such other
Lender Party shall pay such amount to the Administrative Agent to be held by
the Administrative Agent, to the fullest extent permitted by applicable law, in
escrow or the Administrative Agent shall, to the fullest extent permitted by
applicable law, hold in escrow such amount otherwise held by it.  Any funds held by the Administrative Agent in
escrow under this subsection (c) shall be deposited by the Administrative
Agent in an account with DBTCA, in the name and under the control of the
Administrative Agent, but subject to the provisions of this subsection
(c).  The terms applicable to such
account, including the rate of interest payable with respect to the credit
balance of such account from time to time, shall be DBTCA’s standard terms
applicable to escrow accounts maintained with it.  Any interest credited to such account from
time to time shall be held by the Administrative Agent in escrow under, and
applied by the Administrative Agent from time to time in accordance with the
provisions of, this subsection (c).  The
Administrative Agent shall, to the fullest extent permitted by applicable law,
apply all funds so held in escrow from time to time to the extent necessary to
make any Advances required to be made by such Defaulting Lender and to pay any
amount payable by such Defaulting Lender hereunder and under the other Loan
Documents to the Administrative Agent or any other Lender Party, as and when
such Advances or amounts are required to be made or paid and, if the amount so
held in escrow shall at any time be insufficient to make and pay all such
Advances and amounts required to be made or paid at such time, in the following
order of priority:

 

(A)          first, to the
Administrative Agent for any amount then due and payable by such Defaulting
Lender to the Administrative Agent hereunder;

 

(B)           second, to
any other Lender Parties for any amount then due and payable by such Defaulting
Lender to such other Lender Parties hereunder, ratably in accordance with such
respective amounts then due and payable to such other Lender Parties; and

 

(C)           third, to the
Borrower for any Advance then required to be made by such Defaulting Lender
pursuant to the Commitment of such Defaulting Lender.

 

In the event that any Lender Party that is a
Defaulting Lender shall, at any time, cease to be a Defaulting Lender, any
funds held by the Administrative Agent in escrow at such time with respect to
such Lender Party shall be distributed by the Administrative Agent to such
Lender Party and applied by such Lender Party to the Obligations owing to such
Lender Party at such time under this Agreement and the other Loan Documents
ratably in accordance with the respective amounts of such Obligations
outstanding at such time.

 

(d)           Notwithstanding anything to the
contrary contained in this Agreement, in the event that any Revolving Credit
Lender is a Defaulting Lender, no Issuing Bank shall be required to issue,
renew, extend or amend any Letter of Credit, unless such Issuing Bank has
entered into arrangements satisfactory to it and the Borrower to eliminate such
Issuing Bank’s risk with respect to each Defaulting Lender’s participation in
Letters of Credit issued by such Issuing Bank (which arrangements are hereby
consented to by the Lenders), including by cash collateralizing each Defaulting
Lender’s Pro Rata Share of the Letter of Credit Outstandings with 

 

76

 

respect to such Letters of
Credit (such arrangements, the “Letter of Credit Back-Stop Arrangements”).

 

(e)           If any Revolving Credit Lender
becomes a Defaulting Lender at any time that any Letter of Credit issued by any
Issuing Bank is outstanding, the Borrower shall enter into the applicable
Letter of Credit Back-Stop Arrangements with such Issuing Bank no later than 10
Business Days after the date such Revolving Credit Lender becomes a Defaulting
Lender.

 

(f)            Notwithstanding any provision to the
contrary contained in Section 2.01(c), (i) the Swingline Bank shall
not be obligated to make any Swingline Advances at a time when any Revolving
Credit Lender is a Defaulting Lender unless the Swingline Bank has entered into
arrangements satisfactory to it and the Borrower to eliminate the Swingline
Bank’s risk with respect to each Defaulting Lender’s participation in such
Swingline Advances, including by cash collateralizing such Defaulting Lender’s
Pro Rata Share of the outstanding Swingline Advances (such arrangements, the “Swingline
Back-Stop Arrangements”), and (ii) the Swingline Bank shall not make
any Swingline Advance after it has received written notice from the Borrower,
any other Loan Party or the Majority Lenders stating that a Default or an Event
of Default exists and is continuing until such time as the Swingline Bank shall
have received written notice (A) of rescission of all such notices from
the party or parties originally delivering such notice or notices or (B) of
the waiver of such Default or an Event of Default by the Majority Lenders.

 

(g)           The rights and remedies against a
Defaulting Lender under this Section 2.15 are in addition to other rights
and remedies that the Borrower may have against such Defaulting Lender with
respect to any Defaulted Advance and that the Administrative Agent or any
Lender Party may have against such Defaulting Lender with respect to any
Defaulted Amount.

 

SECTION 2.16.Superpriority
Nature of Obligations.  All
Obligations under the Loan Documents shall constitute allowed administrative expense
claims in the Chapter 11 Cases against the Loan Parties with priority under Section 364(c)(1) of
the Bankruptcy Code over any and all other administrative expenses of the kind
specified or ordered pursuant to any provision of the Bankruptcy Code, including,
but not limited to, Sections 105, 326, 328, 503(b), 506(c), 507(a), 507(b) and
726 of the Bankruptcy Code; provided that, the priority status of the
Obligations and the Liens securing the same shall be subject to the Carve-Out
and provided further that the respective priority of the First Out
Obligations and the Last Out Obligations shall be as set forth in Section 2.20
and Section 6.02.

 

SECTION 2.17.Bailee
for Perfection.  (a) The
Administrative Agent agrees to acquire and acknowledges that it holds the
Collateral in its possession or control (or in the possession or control of its
agents or bailees) on behalf of itself and the collateral agent under the
Prepetition Collateral Documents and its respective assignees (the “Prepetition
Collateral Agent”) solely for the purpose of perfecting the security
interest granted under the Loan Documents and the Prepetition Loan Documents,
subject to the terms and conditions of this Section 2.17.

 

(b)           Until the payment in full in cash of
all Obligations, termination or cash collateralization of all Letters of Credit
issued hereunder and the termination of the Revolving 

 

77

 

Credit Commitments hereunder
has occurred, the Administrative Agent shall be entitled to deal with the
Collateral in accordance with the terms of the Loan Documents as if the Liens
of the Prepetition Collateral Agent under the Prepetition Collateral Documents
did not exist, but subject always to the terms of the Orders, as applicable.

 

(c)           The Administrative Agent shall have
no obligation whatsoever to the Secured Parties or the Prepetition Collateral
Agent to assure that the Collateral is genuine or owned by any of the Loan
Parties or to preserve the rights or benefits of any Person except as expressly
set forth in this Section 2.17.  The
duties or responsibilities of the Administrative Agent under this Section 2.17
shall be limited solely to holding the Collateral as bailee in accordance with
this Section 2.17.

 

(d)           The Administrative Agent acting
pursuant to this Section 2.17 shall not have by reason of the Collateral
Documents, the Prepetition Collateral Documents, this Agreement or any other
document a fiduciary relationship in respect of the Secured Parties, the
Prepetition Collateral Agent or the Prepetition Secured Parties.

 

SECTION 2.18.No
Discharge; Survival of Claims.  The
Borrower, on behalf of itself and its Subsidiaries, agrees that (a) the
Obligations hereunder shall not be discharged by the entry of an order
confirming a plan of reorganization in any Chapter 11 Case (and the Borrower,
on behalf of itself and its Subsidiaries, pursuant to Section 1141(d)(4) of
the Bankruptcy Code, hereby waive any such discharge) and (b) the
superpriority administrative claim granted to the Administrative Agent and the
Lenders pursuant to the Interim Borrowing Order (and the Final Borrowing Order
when applicable) and described therein and the Liens granted to the
Administrative Agent pursuant to the Interim Borrowing Order (and the Final
Borrowing Order when applicable) and described therein shall not be affected in
any manner by the entry of an order confirming a plan of reorganization in any
Chapter 11 Case.

 

SECTION 2.19.Extension
of Maturity Date.

 

(a)           Request
for Extension.  The Borrower may
request, by notice given to the Administrative Agent (who shall promptly notify
the Lenders) (the “Extension Request”) on a date that is not earlier
than forty five (45) days and not later than fifteen (15) days prior to the
Original Termination Date that the Original Termination Date be extended to the
date which is 90 days after the Original Termination Date, or if such date is
not a Business Day on the next preceding Business Day.

 

(b)           Conditions
to Effectiveness of Extension.  The
Original Termination Date shall be automatically extended to the Extended
Termination Date on the first day (the “Extension Effective Date”) that
each of the following conditions is satisfied:

 

(i)            no Default or Event of Default shall
have occurred and be continuing on the date of receipt of the Extension Request
by the Administrative Agent or on the Extension Effective Date after giving
effect thereto;

 

(ii)           the representations and warranties
contained in this Agreement are true and correct in all material respects on
and as of the date of receipt of the Extension Request by the Administrative
Agent and as of the Extension Effective Date after giving effect thereto, as 

 

78

 

though made on and as of
such date (or, if any such representation or warranty is expressly stated to
have been made as of a specific date, as of such specific date);

 

(iii)          the Borrower shall have delivered to
the Administrative Agent, prior to delivering the Extension Request, an update
of the DIP Budget through [          ],
2010(1) in form and scope reasonably satisfactory to the Instructing
Group;

 

(iv)          the Borrower shall have filed, prior
to delivering the Extension Request, a draft Reorganization Plan and related
disclosure statement, in each case in form and substance reasonably
satisfactory to the Instructing Group;

 

(v)           the most recent Appraisal Report and
field examination and audit report delivered by the Borrower to the
Administrative Agent are dated no earlier than the date which is two (2) months
prior to the Original Termination Date;

 

(vi)          the Borrower shall have delivered to
the Administrative Agent an updated DIP Forecast in form and substance
satisfactory to the Instructing Group which shall include each week beginning
on or prior to the Extended Termination Date to the extent that any such week
is not included in the most recent DIP Forecast provided to the Administrative
Agent; and

 

(vii)         the Borrower shall have paid (x) the
Extension Fee to the Administrative Agent for the account of each First Out Lender
and (y) the Additional Interest to the Administrative Agent for the
account of each Last Out Term Lender.

 

SECTION 2.20. Last Out Term Advances.
Notwithstanding anything to the contrary contained herein or in any other Loan
Document, in order to reflect the first-in, last-out nature of the Last Out
Term Advances, the following provisions shall apply at all times:

 

(a)           General.  Subject to the terms of the Orders and the
provisions of this Section 2.20, the Administrative Agent, on behalf of
the First Out Lender Parties, shall have the right to apply payments of any
kind from any source, including the proceeds of any Collateral, to the payment
of the First Out Obligations until the First Out Final Payment Date has
occurred, in any manner in the Administrative Agent’s sole and unfettered
discretion before making any payment or other distribution or providing any
other consideration whatsoever to the Last Out Term Lenders.

 

(b)           Principal Payments.  No payment or other distribution or
consideration shall be applied to the principal balance of the Last Out Term
Advances (whether as scheduled amortization, mandatory prepayments, optional
prepayments or otherwise) until the occurrence of the First Out Final Payment
Date. Following the occurrence of the First Out Final Payment Date, the
principal amount of the Last Out Term Advances may be prepaid or shall be
repaid in accordance with Section 2.06.

 

(c)           Interest
and Other Payments. The Borrower shall pay
interest on each Last Out Term Advance of each Last Out Term Lender on
the date on which such interest is due in 

 

(1) Insert Extended Termination Date in
Execution Copy.

 

79

 

accordance with Section 2.07(a) in
cash.  Any default interest in respect of
the Last Out Obligations shall be paid in accordance with Section 2.07(b).

 

(d)                                 Fees, Costs and
Expenses. The Borrower shall pay any enhanced yield, fees,
costs or expenses incurred by any Last Out Term Lender as provided for in this
Agreement (including pursuant to 2.02(f), 2.08(d), 2.10, 2.19(b) and Section 8.04)
or the Enhanced Yield Letter Agreement on the date required hereunder or
threunder.

 

(e)                                  Gross-Up
Payments. The Borrower shall pay any gross-up amount payable
to any Last Out Term Lender pursuant to Section 2.12(a) on the date
required thereunder.

 

(f)                                    Turnover.  Until the occurrence of the First Out Final
Payment Date, any payment or other distribution or consideration or Collateral
proceeds that may be received by any Last Out Term Lender in its capacity as a
Last Out Term Lender (provided that this shall not apply to any payment
or other distribution or consideration or proceeds received by a Last Out Term
Lender owing to it in any other or different capacity pursuant to any
Reorganization Plan or as authorized by the Bankruptcy Court) in violation of
this Agreement and any distribution in the Chapter 11 Cases shall be segregated
and held in trust and promptly paid over to the Administrative Agent, for the
benefit of the First Out Lender Parties, in the same form as received, with any
necessary endorsements, and each Last Out Term Lender hereby authorizes the
Administrative Agent to make any such endorsements (which authorization, being
coupled with an interest, is irrevocable).

 

(g)                                 Liens.  No Last Out Term Lender shall object to or
contest, or support any other Person in contesting or objecting to, in any
proceeding before the Bankruptcy Court, the validity, extent, perfection,
priority or enforceability of any security interest in the Collateral or
pursuant to any Order. Notwithstanding any failure by the Administrative Agent
or any other Secured Party to perfect its security interests in the Collateral
or any avoidance, invalidation or subordination by any third party or court of
competent jurisdiction of the security interests in the Collateral, the
priority and rights as between the First Out Lender Parties and the Last Out
Term Lenders with respect to any proceeds of the Collateral shall be as set
forth in this Agreement.

 

(h)                                 Exclusive
Administration of First Out Obligations.  This Agreement shall not be construed to
create a fiduciary relationship between the Administrative Agent and the First
Out Lender Parties, on the one hand, and any Last Out Term Lender, on the other
hand.  Each Last Out Term Lender
acknowledges and agrees that the Administrative Agent’s actions under this
Agreement are strictly administrative and any repayment of principal or
interest or other amount to any Last Out Term Lender is solely dependent upon
the Borrower.  Except for willful
misconduct or actual fraud (as determined by a court of competent jurisdiction
in a final and non-appealable decision), each Last Out Term Lender exonerates
the First Out Lender Parties and the Administrative Agent of and from any
obligation or liability, express or implied, for any loss, depreciation of or
failure to realize upon the Advances or any other Obligations, or any
Collateral securing the Advances or any other Obligations, or for failure to
collect or receive payments of any sums owing from the Borrower or for any
mistake, omission, or error of judgment in passing upon or accepting the
Advances or any other Obligations, the Collateral, if any, any Loan Documents,
or in the making of any advances of monies or extensions of credit to the
Borrower, or in making any examinations, audits or reviews of the affairs of
the Borrower or 

 

80

 

the Collateral, or in granting
to the Borrower extensions of time for payment of the Advances or any other
Obligations (other than any Last Out Term Advances or any Last Out Obligations
in violation of the terms of this Agreement, without the consent of the Last
Out Term Lenders or Last Out Requisite Lenders as required pursuant to this
Agreement) or in administering or monitoring the Collateral for the Advances or
any other Obligations.  Moreover, the
Administrative Agent does not assume and does not have any obligation or liability
and undertakes no guaranties, express or implied, with respect to the existing
or future financial worth or responsibility of the Borrower, or of any of the
Account Debtors of the Borrower, with respect to the genuineness or value of
the Collateral or with respect to the payment or the collectability of the
Advances or any other Obligations.

 

(i)                                     Exclusive
Enforcement. Until the First Out Final Payment Date has
occurred, the Administrative Agent and the First Out Lenders shall have the
sole and exclusive right to take and continue any Enforcement Action with
respect to the Collateral, without any consent of any Last Out Term Lender
including, without limitation, the right to amend any of the Loan Documents
(subject to the provisions of Section 8.01(d), (e) and (f)), to
amend, modify, waive terminate, or release any of the First Out Obligations of
the Borrower or to release any Collateral securing the Obligations. No Last Out
Term Lender will exercise or seek to exercise any rights or remedies (including
set-off) with respect to any Collateral (including, without limitation, the
exercise of any right under any lockbox agreement, account control agreement,
landlord waiver or bailee’s letter or similar agreement or arrangement to which
such Last Out Term Lender is a party) or institute or commence, or join with
any Person in commencing, any action or proceeding with respect to such rights
or remedies (including any action of foreclosure, enforcement, collection or
execution), and will not contest, protest or object to any foreclosure
proceeding or action brought by the Administrative Agent or any other First Out
Lender Party or any other exercise by the Administrative Agent or any other
First Out Lender Party, of any rights and remedies relating to the Collateral
under the Loan Documents or otherwise, or object to the forbearance by the
Administrative Agent or any other First Out Lender Party from bringing or
pursuing any foreclosure proceeding or action or any other exercise of any
rights or remedies relating to the Collateral. Until the First Out Final
Payment Date, upon the occurrence and during the continuance of an Event of
Default, the Administrative Agent and the First Out Lenders may take and
continue any Enforcement Action with respect to the First Out Obligations and
the Collateral in such order and manner as they may determine in their sole and
absolute discretion. The Administrative Agent and the First Out Lender Parties
agree to use their reasonable commercial efforts to consult with the Last Out Term
Lenders prior to taking any Enforcement Action with respect to the Collateral
or exercising any other rights or remedies under the Loan Documents; provided
that the Administrative Agent or any First Out Lender Party shall be entitled
to take Enforcement Action or exercise other rights or remedies prior to any
such consultation if, in their reasonable opinion, it is necessary to act
urgently to protect or preserve any Obligation or any Collateral, and such
Enforcement Action or exercise of other rights or remedies shall not be
invalidated or subject to challenge by any Last Out Term Lender as a result of
any failure to consult prior to taking Enforcement Action or exercising such
other rights or remedies.

 

(j)                                     Disgorgement.  If any First Out Lender Party is required to
disgorge any amounts it has received on account of the First Out Obligations
and pay any such amount over to any Last Out Term Lender, the Last Out Term
Lenders shall immediately reimburse such First 

 

81

 

Out Lender Party for the
amount that such First Out Lender Party was required to disgorge, limited to
the amount of distributions received by the Last Out Term Lenders on account of
their Last Out Term Advances through the date of such disgorgement.  Once the Last Out Term Advances are funded by
the Last Out Term Lenders, other than the payment of interest pursuant to Section 2.20(c),
the payment of any enhanced yield, fees, costs and expenses pursuant to Section 2.20(d) and
the payment of any gross-up amount by the Borrower to any Last Out Term Lender
pursuant to Section 2.20(e), no monies or other consideration shall be
paid to, or received by, any Last Out Term Lender in respect of the Last Out
Term Advances, until the First Out Final Payment Date.

 

(k)                                  Judgment
Creditors. In the event that any Last Out Term Lender becomes
a judgment lien creditor in respect of any Collateral as a result of its
enforcement (in violation of this Agreement) of its rights as an unsecured
creditor, such judgment lien shall be subject to the terms of this Agreement
for all purposes (including in relation to the First Out Obligations) to the
same extent as the Last Out Obligations are subject to the terms of this
Agreement.

 

(l)                                     Asset Sales. If an Event
of Default has occurred and is continuing, and the First Out Lenders have
commenced the exercise of remedies as a result of such Event of Default, the
First Out Lenders shall have the right to control any consent to an asset sale
or other disposition, in each case, made in connection with such remedies
exercise, that is not currently permitted hereunder, and the Last Out Term
Lenders shall be deemed to have consented to any such asset sale or other
disposition that has been consented to by the Majority Lenders.

 

(m)                               Voting Rights. The Last Out
Term Lenders shall be deemed to have consented to any acceleration of the
Obligations hereunder that is consented to or requested by the Majority
Lenders.

 

(n)                                 Lender Meetings
and Information. The First Out Lenders shall have the right to
exclude the Last Out Term Lenders from any meeting of First Out Lenders for any
reason. In addition, the Administrative Agent shall have no obligation to
provide the Last Out Term Lenders any information distributed with respect to
any such meeting.

 

(o)                                 Agreements
Regarding Chapter 11 Cases.

 

(i)                                     In connection
with (i) the Chapter 11 Cases, (ii) any subsequent or successor case
commenced or continued under the Bankruptcy Code with respect to the Borrower, (iii) any
other federal, state or foreign bankruptcy, insolvency, reorganization or other
law affecting creditors’ rights or any other or similar proceedings seeking any
stay, reorganization, arrangement, composition or readjustment of the
obligations and indebtedness of the Borrower, (iv) any other proceeding
seeking the appointment of any trustee, receiver, liquidator, custodian or
other insolvency official with similar powers with respect to the Borrower or
any of its assets, (v) any other proceeding for liquidation, dissolution
or other winding up of the business of the Borrower or (vi) any assignment
for the benefit of creditors or any marshalling of assets of the Borrower (any
of the events referred to in preceding clauses (i) through (v), an “Insolvency
Proceeding”), the agreements contained in this Agreement are and shall
remain in full force and effect and enforceable pursuant to their terms.  No payment or other realization or recovery
of any 

 

82

 

amounts or other consideration on account of the
Last Out Term Advances shall be received or retained by any of the Last Out
Term Lenders unless and until the First Out Final Payment Date has occurred
during the pendency of any Insolvency Proceeding, regardless of whether such
interest, fees, enhanced yield, costs and expenses are allowed or allowable by
the Bankruptcy Court or any other bankruptcy court, other than the payment of
interest pursuant to Section 2.20(c), the payment of any fees, costs and
expenses pursuant to Section 2.20(d) and the payment of any gross-up
amount by the Borrower to any Last Out Term Lender pursuant to Section 2.20(e).

 

(ii)                                  No Last Out
Term Lender shall contest, challenge, or object to any claim by the
Administrative Agent, any First Out Lender or any First Out Lender Party
against the Borrower (including any claim under 11 U.S.C. § 506(b)) or the
extent, validity, perfection, or priority of the liens held by the
Administrative Agent, any First Out Lender and/or any other First Out Lender
Party as security for the Advances or other Obligations.

 

(iii)                               Until the First
Out Final Payment Date, after an Event of Default has occurred and is
continuing, the Last Out Term Lenders agree that the Administrative Agent may
consent to the sale or foreclosure or disposition of any or all of the
Collateral (including any Collateral subject to the adequate protection Liens
of the Administrative Agent) in the Chapter 11 Case or any other Insolvency
Proceeding, whether such sale or disposition is to be made pursuant to Section 363
of the Bankruptcy Code, pursuant to a plan of reorganization or otherwise, and
the Last Out Term Lenders shall be deemed to have consented to any such sale or
disposition and all of the terms applicable thereto; provided that, the
Administrative Agent agrees to use its reasonable commercial efforts to give
the Last Out Term Lenders prior written notice of any such sale, foreclosure or
disposition (other than in connection with a sale, foreclosure or disposition
made in the ordinary course of business and not otherwise prohibited by the
terms of the Loan Documents) but the failure to give such notice shall not
affect any action taken without such notice having been given.

 

(iv)                              If, in any
Insolvency Proceeding, the Administrative Agent desires to permit use of any
Collateral (including any Cash Collateral (as defined in Section 363(a) of
the Bankruptcy Code)), or permit or provide additional financing under either Section 363
or 364 of the Bankruptcy Code (an “Additional DIP Financing”), then, so
long as the terms of the Additional DIP Financing are permitted by the Orders,
the Last Out Term Lenders agree that no objection shall be raised by any of the
Last Out Term Lenders to such Additional DIP Financing or use of Collateral,
including any objection based on lack of adequate protection.

 

(v)                                 Until the First
Out Final Payment Date, no Last Out Term Lender shall (i) seek relief from
the automatic stay or any other stay in any Insolvency Proceeding in respect of
the Collateral, without the prior written consent of the Administrative Agent
or (ii) oppose any request by the Administrative Agent to seek relief from
the automatic stay or any other stay in any Insolvency Proceeding in respect of
the Collateral.

 

(vi)                              In the Chapter
11 Case or any other Insolvency Proceeding, no Last Out Term Lender shall
object to any adequate protection sought by the Administrative Agent, 

 

83

 

the First Out Lenders and the other First Out Lender
Parties.

 

(vii)                           The Last Out
Term Lenders agree that, until the First Out Final Payment Date, no Last Out
Term Lender shall be entitled to benefit from any avoidance action affecting or
otherwise related to any distribution or allocation made in respect of any of
the Obligations, whether by preference or otherwise, it being understood and
agreed that the benefit of such avoidance action otherwise allocable to them
shall instead be allocated and turned over for application to the First Out
Obligations until the First Out Final Payment Date has occurred.

 

(viii)                        Each Last Out
Term Lender hereby waives any claim such Last Out Term Lender may have against
the Administrative Agent arising out of the election of the Administrative
Agent for the application of Section 1111(b)(2) of the Bankruptcy
Code and agrees to make no election under Section 1111(b)(2) of the
Bankruptcy Code in respect of its interest in the Collateral without the
consent of the Administrative Agent.

 

(ix)                                The Last Out
Term Lenders agree that each of them shall take such further action and shall
execute and deliver such additional documents and instruments (in recordable
form, if requested) as the Administrative Agent may reasonably request to
effectuate the provisions of this Section 2.20(o).

 

(p)                                 No Restriction
on Rights.  Nothing in
this Agreement shall be construed to limit or restrict the Administrative
Agent, the First Out Lenders or the other First Out Lender Parties from in any
way exercising any rights or remedies arising under the Loan Documents, or any
documents or agreements executed by the Borrower or provided for under
applicable law, except to the extent otherwise expressly provided in this
Agreement.  No Last Out Term Lender shall
have any direct claim against the Borrower or any Loan Party or any right to
enforce any of the terms of the Loan Documents, including, but not limited to,
exercising any rights or remedies arising under the Orders or any documents or
agreements executed by the Borrower or provided for under applicable law,
unless and until the First Out Final Payment Date has occurred, other than (i) the
enforcement by any Last Out Term Lender of any right of action or claim against
the Administrative Agent or any other Lender Party in relation to the
enforcement of any Last Out Term Lender’s rights hereunder, (ii) the
enforcement of any provision of Section 3.01 in respect of which the Last
Out Term Lenders have an approval right under Section 8.01(d)(ii) or Section 8.01(f)(ii),
or (iii) the provisions of Section 8.01(d), (e) or (f).  Until such time, all rights, remedies, and
privileges with respect to the Advances and the other Obligations may be
exercised only by the Administrative Agent on behalf of the First Out Lenders
and the other First Out Lender Parties and without any requirement of consent
or approval of the Last Out Term Lenders.

 

(q)                                 Set-off by Last
Out Term Lenders.  Until the
First Out Final Payment Date, no Last Out Term Lender shall set off or recoup
any amounts owing to it by the Borrower on account of such Last Out Term Lender’s
making of its Last Out Term Advances against any amounts owing by such Last Out
Term Lender to the Borrower.

 

(r)                                    Assignment. The Last Out
Term Lenders may assign the Last Out Term Advances in accordance with the
provisions of Section 8.07, provided that (i) Last Out Term 

 

84

 

Advances shall continue to
be Last Out Term Advances and (ii) the assignee of such Advances shall be
bound to the terms of this Agreement, including this Section 2.20.

 

(s)                                  Reliance, Etc. The provisions of this Section 2.20
constitute a “subordination agreement” for purposes of Section 510(a) of
the Bankruptcy Code.

 

ARTICLE
III

 

CONDITIONS
OF EFFECTIVENESS AND LENDING

 

SECTION 3.01.Conditions
Precedent to Initial Availability. 
The obligation of each Lender to make an Advance, the obligation of the
Swingline Bank to make a Swingline Advance and the obligation of the Initial
Issuing Bank to issue one or more Letters of Credit is subject to the
satisfaction or waiver of the following conditions precedent before or concurrently
with, and this Agreement shall become effective on and as of, the date (the “Closing
Date”) when the following conditions shall have been satisfied:

 

(a)                                  DIP Credit
Agreement.  The
Administrative Agent shall have received this Agreement, executed and delivered
by the Borrower, each Initial Lender, the Swingline Bank, the Initial Issuing
Bank, the Administrative Agent and the Lead Arranger.

 

(b)                                 Fourth
Amendment and Canadian Forbearance Agreement.  The Instructing Group and the Last Out
Requisite Term Lenders shall be satisfied with the terms of the Fourth
Amendment and Canadian Forbearance Agreement and it shall have been executed
and delivered by the Borrower, Accuride Canada, each other Loan Party, each of
the Prepetition Lenders required to be party thereto and the Prepetition
Administrative Agent.

 

(c)                                  Legal Structure
and Constitutional Documents.  The Administrative Agent shall be reasonably
satisfied with the corporate and legal structure of each Loan Party, including
the terms and conditions of the charter, bylaws and each class of capital stock
of each Loan Party and of each agreement or instrument relating to such
structure.

 

(d)                                 No Material
Adverse Effect.  Since December 31,
2008, nothing shall have occurred (and neither the Administrative Agent nor any
Lender shall have become aware of any facts or conditions not previously known)
which the Administrative Agent or the Majority Lenders or the Last Out
Requisite Lenders shall determine has had, or would reasonably be expected to
have, either individually or in the aggregate, a Material Adverse Effect.

 

(e)                                  No Litigation.  There shall exist no action, suit,
investigation, litigation or proceeding (other than the Chapter 11 Cases)
affecting any Loan Party or any of its Subsidiaries pending or threatened
before any court, governmental agency or arbitrator that (i) would
reasonably be likely to have a Material Adverse Effect (other than as a result
of the Effects of Bankruptcy) or (ii) purports to affect the legality,
validity or enforceability of this Agreement, any Note, any other Loan
Documents or the consummation of the transactions contemplated hereby.

 

85

 

(f)                                    Consents and
Approvals.  All
governmental and third party consents and approvals necessary in connection
with the Transactions and the Loan Documents and the transactions contemplated
thereby shall have been obtained (without the imposition of any conditions that
are not reasonably acceptable to the Administrative Agent) and shall remain in effect;
all applicable waiting periods shall have expired without any action being
taken by any competent authority; and no law or regulation shall be applicable
in the reasonable judgment of the Administrative Agent that restrains, prevents
or imposes materially adverse conditions upon the Transactions and the Loan
Documents and the transactions contemplated thereby.

 

(g)                                 Payment of Fees.  The Administrative Agent shall have received,
for its own account and for the account of the Initial Revolving Credit Lenders,
the fees owing under the Fee Letters.

 

(h)                                 Payment of
Enhanced Yield.  The
Administrative Agent shall have received, for the account of the Last Out Term
Lenders, the amounts in respect of Enhanced Yield owing under the Enhanced
Yield Letter Agreement.

 

(i)                                     Payment of
Costs and Expenses.  The
Lenders, the Administrative Agent, Houlihan Lokey, White & Case LLP,
special New York counsel, Fox Rothschild Delaware counsel and Stikeman Elliott
LLP, Canadian counsel as legal advisors to the Administrative Agent, Finn Dixon &
Herling LLP, as counsel to General Electric Capital Corporation, Nixon Peabody
LLP, as counsel to Eaton Vance Management, and Milbank, Tweed, Hadley &
McCloy LLP, as special New York counsel to the Last Out Term Lenders, shall
each have received all reasonable and documented costs and expenses (including
fees for professional services incurred or rendered, as the case may be, by any
of them) required to be paid, and for which invoices have been presented, on or
before the Closing Date.

 

(j)                                     Corporate
Documents; Officer’s Certificates; Copies of Documents; Etc.  The Administrative Agent shall have received
on or before the Closing Date the following, each dated such day (unless
otherwise specified), in form and substance reasonably satisfactory to the
Administrative Agent (unless otherwise specified) and (except for the Notes) in
sufficient copies for each Lender Party:

 

(i)                                     A Note payable
to the order of the Swingline Bank or each Lender that has requested the same.

 

(ii)                                  Certified
copies of the resolutions of the Board of Directors of the Borrower and each
other Loan Party approving each Loan Document to which it is or is to be a
party and the transactions contemplated thereby, and of all documents
evidencing other necessary corporate action and governmental and other third
party approvals and consents, if any, with respect to the Transactions, this
Agreement, the Notes and each other Loan Document.

 

(iii)                               A copy of a
certificate of the Secretary of State of the jurisdiction of its incorporation
or formation, listing the charter (or other formation document)

 

86

 

of the Borrower and each
other Loan Party and each amendment thereto on file in his office and
certifying that (A) such amendments are the only amendments to the
Borrower’s or such other Loan Party’s charter (or other formation document) on
file in his office, (B) the Borrower and each such other Loan Party have
paid all franchise taxes to the date of such certificate and (C) the Borrower
and each other Loan Party are duly incorporated or formed and in good standing
under the laws of the State of the jurisdiction of its incorporation or
formation, it being acknowledged that the certificates previously received by
the Administrative Agent from the Borrower and each Subsidiary Guarantor are
satisfactory to the Administrative Agent.

 

(iv)                              A certificate
of the Borrower and each other Loan Party, signed on behalf of the Borrower and
such other Loan Party by its President or a Vice President and its Secretary or
any Assistant Secretary (or in the case of Accuride Erie by a duly authorized
officer of the sole member of its general partner), dated the Closing Date (the
statements made in which certificate shall be true on and as of the Closing Date),
certifying as to (A) the absence of any amendments to the charter (or
other formation document) of the Borrower or such other Loan Party since the
date of the certificate referred to in Section 3.01(i)(iii), (B) the
absence of any amendments to the bylaws (or other organizational document) of
the Borrower and such other Loan Party previously delivered to the
Administrative Agent and as in effect on the Closing Date, (C) the absence
of any proceeding for the dissolution or liquidation of the Borrower or such
other Loan Party, (D) the truth and accuracy of the representations and
warranties contained in the Loan Documents in all material respects as though
made on and as of the Closing Date and (E) the absence of any event
occurring and continuing, or resulting from the initial Borrowing, that
constitutes a Default.

 

(v)                                 A certificate
of the Secretary or an Assistant Secretary of the Borrower and each other Loan
Party certifying the names and true signatures of the officers of the Borrower
and such other Loan Party authorized to sign this Agreement, the Notes and each
other Loan Document to which they are or are to be parties and the other
documents to be delivered hereunder and thereunder.

 

(vi)                              The Guarantee
and Collateral Agreement, duly executed by the Borrower and each other Debtor,
together with:

 

(A)                              certificates representing 100% of the
issued and outstanding capital stock, limited liability company interests,
partnership interests or other ownership or profit interest owned by the Loan
Parties, accompanied by undated stock powers executed in blank; provided
that, subject to the terms of the Interim Borrowing Order or (when entered) the
Final Borrowing Order, no more than 66% of the issued and outstanding stock of
any first-tier Foreign Subsidiaries of the Borrower or any other Debtors shall
be required to be pledged, it being acknowledged that delivery of the foregoing
items to the Administrative Agent in its capacity

 

87

 

as Prepetition Administrative Agent pursuant to the Prepetition Credit
Agreement satisfies such requirement,

 

(B)                                copies of proper financing statements
thereto, to be duly filed on or before the Closing Date under the Uniform
Commercial Code of all jurisdictions that the Administrative Agent may deem
necessary or desirable in order to perfect and protect the first priority liens
and security interests created under the Guarantee and Collateral Agreement,
covering the Collateral described therein, and

 

(C)                                evidence that all other action that the
Administrative Agent may reasonably deem necessary or desirable in order to
perfect and protect the first priority liens and security interests created
under any of the Collateral Documents (including, without limitation, any
action so deemed necessary or desirable as a result of changes in the names or
corporate structure of any of the Borrower’s subsidiaries) has been taken and
remains in full force and effect,.

 

(vii)                           Financial
Statements.  True and
correct copies of the historical financial statements referred to in Section 4.01(f).

 

(viii)                        Interim Initial
DIP Forecast.  The Interim
Initial DIP Forecast in form and substance reasonably satisfactory to the
Instructing Group and the Last Out Requisite Lenders and otherwise complying
with the requirements of Section 5.03(d).

 

(ix)                                Accounts
Information.  A report in
the form of Exhibit K attached hereto of the cash and Cash
Equivalent balances held by the Borrower and each Subsidiary Guarantor and the
Excess Availability as of the close of on the immediately preceding Business
Day.

 

(x)                                   Legal Opinions.  Favorable opinions of (i) Latham and
Watkins LLP, U.S. counsel for the Borrower, in substantially the form of Exhibit F
hereto and as to such other matters as any Lender Party through the
Administrative Agent may reasonably request; and (ii) internal counsel for
the Borrower and the other Debtors, substantially in the form of Exhibit G.

 

(xi)                                Borrowing Base
Certificate.  The Initial
Borrowing Base Certificate in form and substance satisfactory to the Administrative
Agent.

 

(xii)                             Borrowing Base
Appraisal and Collateral Examination.  (i) An Appraisal Report in respect of
the Inventory of the Borrower and the Subsidiary Guarantors in a form
satisfactory to the Administrative Agent, and (ii) a field examination and
auditor report in respect of the Accounts and Inventory of the Borrower in a
form satisfactory to the Administrative Agent, it being understood that the
Hilco Appraisal Report dated August 31, 2009 and the KPMG field
examination and audit report dated August 14, 2009 are satisfactory.

 

88

 

(k)                                  Insurance. The
Administrative Agent shall be satisfied with the insurance coverage in effect
on the Closing Date pertaining to the assets of the Borrower and each other
Loan Party.

 

(l)                                     Know Your
Customer Documentation.  The
Administrative Agent shall have received, by the date which is three days prior
to the Closing Date, all documentation and other information mutually agreed to
be required by regulatory authorities under applicable “know your customer” and
anti-money laundering rules and regulations, including the USA Patriot
Act, including the information described in Section 8.13.

 

(m)                               Interim
Borrowing Order.  The Interim
Borrowing Order shall have been entered by the Bankruptcy Court on or prior to
5:00 P.M. (New York City time) no later than the fifth (5th) Business Day
after the Petition Date.

 

(n)                                 First Day
Orders and Payments.  All First
Day Orders entered by the Bankruptcy Court and all related pleadings shall be
in form and substance reasonably satisfactory to the Instructing Group and the Last
Out Requisite Lenders and all adequate protection payments and critical vendor
payments shall be in accordance with the Initial DIP Forecast.

 

(o)                                 Noteholder
Restructuring Support Lockup Agreement.  Evidence that (i) the Debtors have
entered into a binding Noteholder Restructuring Support Lockup Agreement in
form and substance reasonably satisfactory to the Instructing Group and the
Last Out Requisite Lenders, approving the terms of an Approved Plan and (ii) the
Debtors have obtained acceptances in respect of the Approved Plan from, and the
Noteholder Restructuring Support Lockup Agreement has been executed by, (A) the
Debtors and (B) the members of the “ad-hoc committee of holders of Senior
Subordinated Notes” holding at least 66.67% of the aggregate principal amount
of the Senior Subordinated Notes(2).

 

(p)                                 New Capital.  The Instructing Group and the Last Out
Requisite Lenders shall be satisfied with (i) the terms and amount of the
7.5% convertible notes due 2019 to be issued pursuant to the terms of the New
Capital Commitment Agreement and (ii) the form of the New Capital
Commitment Agreement (including the provision of legal opinions in form and
substance reasonably satisfactory to the Instructing Group and the Last Out
Requisite Lenders relating to the New Capital Commitment Agreement and the
capacity and authority of the Backstop Commitment Providers party thereto to
enter into the New Capital Commitment Agreement and to perform their
obligations thereunder).

 

(q)                                 Prepetition
Lender Restructuring Support Lockup Agreement.  Evidence that (i) the Debtors have
entered into a binding Prepetition Lender Restructuring Support Lockup
Agreement in form and substance reasonably satisfactory to the Instructing
Group and the Last Out Requisite Lenders, approving the terms of an Approved
Plan and (ii) the Debtors have obtained acceptances in respect of the
Approved Plan from, and the

 

(2) Level
of lock-up support required to be agreed.

 

89

 

Prepetition Lender Restructuring Support Lockup
Agreement has been executed by, (A) the Debtors, (B) the members of
the Prepetition Steering Committee and (C) certain other Prepetition
Lenders holding at least 50% of the aggregate principal amount of the
Prepetition First Out Loan Obligations.

 

(r)                                    Restructuring
Term Sheets.  The
Debtors, the members of the “ad-hoc committee of holders of Senior Subordinated
Notes” and the members of the Prepetition Steering Committee shall have agreed
the form and content of the Restructuring Term Sheets, which shall be in form
and substance reasonably satisfactory to the Instructing Group and the Last Out
Requisite Lenders.

 

SECTION 3.02.Conditions
Precedent to Full Availability.  The
obligation of each Revolving Credit Lender to make Revolving Credit Advances,
the obligation of the Swingline Bank to make Swingline Advances and the
obligation of each Issuing Bank to issue Letters of Credit: (a) on or
after the Interim Borrowing Order Entry Date or (when entered) the Final
Borrowing Order Entry Date, are subject to the Borrower having received in cash
the proceeds of Last Out Term Advances in an aggregate principal amount equal
to $25,000,000 on the Closing Date and (b) notwithstanding satisfaction of
the foregoing condition, until delivery of an updated KPMG field examination
and audit report in form and substance satisfactory to the Instructing Group,
there shall be no availability under the Total Revolving Credit Commitment
until such condition is satisfied.

 

SECTION 3.03.Conditions
Precedent to Each Borrowing and Issuance. 
The obligation of each Lender to make an Advance (other than a Letter of
Credit Advance made by an Issuing Bank pursuant to Section 2.03(e)(i)) on
the occasion of each Borrowing, the obligation of the Swingline Bank to make a
Swingline Advance and the obligation of each Issuing Bank to issue Letters of
Credit or renew or extend a Letter of Credit and the right of the Borrower to
request a Swingline Advance, shall be subject to the further conditions
precedent that on the date of such Borrowing or issuance or renewal or
extension of a Letter of Credit:

 

(a)                                  Notice of Last
Out Term Borrowing; Notice of Revolving Credit Borrowing; Notice of Swingline
Borrowing; Letter of Credit Request.  The following statements shall be true in all
material respects (and each of the giving of the applicable Notice of Last Out
Term Borrowing, Notice of Revolving Credit Borrowing, Notice of Swingline
Borrowing or Letter of Credit Request and the acceptance by the Borrower of the
proceeds of such Borrowing or the issuance of such Letter of Credit or the
renewal or extension of such Letter of Credit shall constitute a representation
and warranty by the Borrower that both on the date of such notice and on the
date of such Borrowing or issuance or renewal such statements are true):

 

(i)                                     the
representations and warranties contained in each Loan Document are correct in
all material respects on and as of such date, before and after giving effect to
such Borrowing or issuance or renewal and to the application of the proceeds
therefrom, as though made on and as of such date, other than any such
representations or warranties that, by their terms, refer to a specific date
other than the date of such Borrowing or issuance or renewal, in which case, as
of such specific date; and

 

90

 

(ii)                                  no event has
occurred and is continuing, or would result from such Borrowing or issuance or
renewal or from the application of the proceeds therefrom, that constitutes a
Default.

 

(b)                                 Orders.  The Interim Borrowing Order and/or the Final
Borrowing Order shall be in full force and effect and shall not have been
stayed, reversed, amended, modified or vacated without the consent of the
Instructing Group.

 

(c)                                  Anti-Cash
Hoarding Condition.  At the time
of each Revolving Credit Borrowing (but not the time of each issuance or
renewal or extension), and also after giving effect thereto, the aggregate
amount of cash and Cash Equivalents (excluding cash and Cash Equivalents held
in Excluded Accounts) owned or held by the Borrower and its Subsidiaries (as
reflected in the books and records of the Borrower and its Subsidiaries and
determined after giving pro forma effect to the making of each such Revolving
Credit Advance and the application of the proceeds from such Revolving Credit
Advance (to the extent that such proceeds are actually utilized by the Borrower
and/or any of its Subsidiaries)) shall not exceed $10,000,000.

 

(d)                                 Delivery of
Borrowing Base Certificate.  The Administrative Agent shall have received
the most recent Borrowing Base Certificate, as required under Section 5.03(m),
except that the Initial Borrowing Base Certificate shall be delivered no later
than the Closing Date.

 

(e)                                  Compliance with
Borrowing Base. 
Notwithstanding anything to the contrary set forth herein, it shall be a
condition precedent to each Borrowing, or issuance or renewal of a Letter of
Credit, that after giving effect thereto (and the use of the proceeds thereof)
the Aggregate Exposure would not exceed the Borrowing Base at such time.

 

SECTION 3.04.Determinations
Under Section 3.01.  For
purposes of determining compliance with the conditions specified in Section 3.01,
each Lender Party shall be deemed to have consented to, approved or accepted or
to be satisfied with each document or other matter required thereunder to be
consented to or approved by or acceptable or satisfactory to the Lender
Parties, in each case upon (a) such Lender Party’s release of its
signature page to this Agreement from escrow (which release may be made by
written email confirmation or telephone call from such Lender Party or through
any counsel designated for such Lender Party) and (b) the entry of the
Interim Borrowing Order by the Bankruptcy Court.

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

 

SECTION 4.01.Representations
and Warranties of the Borrower.  The
Borrower represents and warrants as follows:

 

(a)                                  Loan Parties -
Due Organization and Formation; Good Standing; Corporate, Company and
Partnership Power and Authority; Capital Stock.  Each Loan

 

91

 

Party (i) is duly organized, validly existing
and in good standing under the laws of the jurisdiction of its organization,
except where the failure to be so qualified is the result of the status of the
relevant entity as a debtor-in-possession in the Chapter 11 Cases, (ii) is
duly qualified and in good standing as a foreign entity in each other
jurisdiction in which it owns or leases property or in which the conduct of its
business requires it to so qualify or be licensed, except (x) where the
failure to be so qualified or in good standing has not had or would not
reasonably be likely to have a Material Adverse Effect and (y) where the
failure to be so qualified is the result of the status of the relevant entity
as a debtor-in-possession in the Chapter 11 Cases and (iii) has all
requisite power and authority (including, without limitation, all material
governmental licenses, permits and other approvals) to own or lease and operate
its properties and to carry on its business as now conducted and as proposed to
be conducted.  All of the outstanding
capital stock of the Borrower has been validly issued and is fully paid and non
assessable as of the Closing Date.

 

(b)                                 Loan Parties’
Subsidiaries - Due Organization and Formation; Good Standing; Corporate,
Limited Liability Company or Partnership Authorization and Authority; Capital
Stock, Membership Interests, Partnership Interests.  Set forth on Schedule 4.01(b) hereto is
a complete and accurate list of all Subsidiaries of each Loan Party as of the
date of such schedule, showing as of the date hereof (as to each such
Subsidiary) the jurisdiction of its incorporation or formation, the number of
limited liability company membership interests or partnership interests or
shares of each class of capital stock authorized, and the number outstanding,
on the date hereof and the percentage of the outstanding limited liability
company membership interests, partnership interests and shares of each such
class owned (directly or indirectly) by such Loan Party and the number of
limited liability company membership interests, partnership interests or shares
covered by all outstanding options, warrants, rights of conversion or purchase
and similar rights at the date hereof. 
All of the outstanding capital stock, limited liability company
membership interests and partnership interests of all of such Subsidiaries have
been validly issued, are fully paid and non assessable and are owned by such
Loan Party or one or more of its Subsidiaries free and clear of all Liens,
except (i) the Carve-Out, (ii) the Senior Third Party Liens and (iii) any
other Liens permitted under Section 5.02(a).  Each such Subsidiary (i) is a
corporation, limited liability company or partnership (as applicable) duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or formation, except where the failure to be
so qualified is the result of the status of the relevant entity as a
debtor-in-possession in the Chapter 11 Cases, (ii) is duly qualified and
in good standing as a foreign corporation or other entity in each other
jurisdiction in which it owns or leases property or in which the conduct of its
business requires it to so qualify or be licensed, except (x) where the
failure to be so qualified or in good standing has not had or would not
reasonably be likely to have a Material Adverse Effect and (y) where the
failure to be so qualified is the result of the status of the relevant entity
as a debtor-in-possession in the Chapter 11 Cases and (iii) has all
requisite corporate, limited liability company or partnership (as applicable)
power and authority (including, without limitation, all governmental licenses,
permits and other approvals) to own or lease and operate its properties and to
carry on its business as now conducted and as proposed to be conducted.

 

92

 

(c)                                  Due
Authorization of Loan Documents; Non-Contravention, Etc.  Subject in each case to the entry by the
Bankruptcy Court of the Interim Borrowing Order (or the Final Borrowing Order
when applicable), the execution, delivery and performance of each Loan Document
and each Related Document have been duly authorized by all necessary corporate,
limited liability company or partnership (as applicable) action on the part of
each Loan Party that is a party thereto, and do not (i) contravene such
Loan Party’s charter or bylaws, partnership agreement or limited liability
company agreement, as the case may be, or any of its other constitutive
documents, (ii) upon entry by the Bankruptcy Court of the Interim
Borrowing Order (or the Final Borrowing Order when applicable), violate any
applicable provision of any material law (including, without limitation, the
Securities Exchange Act of 1934 and the Racketeer Influenced and Corrupt
Organizations Chapter of the Organized Crime Control Act of 1970), rule,
regulation (including, without limitation, Regulation X of the Board of
Governors of the Federal Reserve System), order, writ, judgment, injunction,
decree, determination or award applicable to the Borrower or to its
Subsidiaries, except to the extent that such violations are permitted under
Chapter 11 of the Bankruptcy Code, (iii) except for the Effect of
Bankruptcy, result in the breach of, or constitute a default under, any loan
agreement, indenture, mortgage, deed of trust or other financial instrument, or
any material contract or agreement, binding on or affecting any Loan Party, any
of its Subsidiaries or any of their properties, except to the extent that such
breaches or defaults are permitted under Chapter 11 of the Bankruptcy Code or (iv) except
for the Liens created under the Loan Documents, the Orders and Liens permitted
under Section 5.02(a), result in or require the creation or imposition of
any Lien upon or with respect to any of the properties of any Loan Party or any
of its Subsidiaries.

 

(d)                                 Governmental
and Third Party Approvals.  No
authorization or approval or other action by, and no notice to or filing with,
any governmental authority or regulatory body or any other third party is
required for (i) the due execution, delivery, recordation, filing or
performance by any Loan Party of any Loan Document to which it is or is to be a
party and (ii) the consummation of the transactions contemplated by the
Loan Documents, except, in each case, for (x) those that have already been
obtained and are in full force and effect, (y) filings necessary to
perfect Liens created under the Loan Documents within the applicable statutory
limits and (z) entry by the Bankruptcy Court of the Interim Borrowing
Order (or the Final Borrowing Order when applicable) or as otherwise required
by the Bankruptcy Code and applicable state and federal bankruptcy rules.

 

(e)                                  Due Execution and
Delivery; Binding Obligation.  Upon entry by the Bankruptcy Court of the
Interim Borrowing Order (or the Final Borrowing Order when applicable), each of
the Loan Documents has been duly executed and delivered by each Loan Party
thereto and is the legal, valid and binding obligation of each Loan Party
thereto, enforceable against such Loan Party in accordance with its terms and
the terms of the Interim Borrowing Order (or the Final Borrowing Order when
applicable).

 

(f)                                    Historical
Financial Statements.  (A) The
Consolidated balance sheet of the Borrower and its Subsidiaries as at December 31,
2008, and the related Consolidated statements of income and cash flow of the
Borrower and its Subsidiaries for the fiscal

 

93

 

year then ended, accompanied by an opinion of
Deloitte & Touche LLP, independent public accountants, (B) the
Consolidated balance sheet of the Borrower and its Subsidiaries as at June 30,
2009, and the related Consolidated statements of income and cash flow of the
Borrower and its Subsidiaries for the six months then ended, duly certified by
the chief financial officer of the Borrower, and (C) the Consolidated
balance sheet of the Borrower and its Subsidiaries as at August 31, 2009,
and the related Consolidated statements of income and cash flow of the Borrower
and its Subsidiaries for the twelve months then ended (or, in the case of such
cash flow statement, the eight months then ended), duly certified by the chief
financial officer of the Borrower, copies of which have been furnished to each
Lender Party, fairly present in all material respects, subject, in the case of (x) said
balance sheet as at June 30, 2009, and said statements of income and cash
flow for the six months then ended and (y) said balance sheet as at August 31,
2009, and said statements of income and cash flow for the twelve (or, as
applicable, eight) months then ended, to year-end audit adjustments, the
Consolidated financial condition of the Borrower and its Subsidiaries as at such
dates and the Consolidated results of the operations of the Borrower and its
Subsidiaries for the periods ended on such dates, all in accordance with
generally accepted accounting principles applied on a consistent basis (unless
otherwise expressly noted therein), and since December 31, 2008, there has
been no Material Adverse Effect (other than the Transactions).

 

(g)                                 Forecasts.  The Consolidated forecasted balance sheets,
income statements and cash flows statements of the Borrower and its
Subsidiaries delivered to the Lender Parties prior to the Closing Date were
prepared in good faith on the basis of the estimates and assumptions stated
therein, which estimates and assumptions were believed to be reasonable and
fair in the light of conditions existing at the time made, it being understood
by the Lender Parties 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.

 

(h)                                 DIP Forecast. The Loan
Parties have disclosed any material assumptions with respect to the projections
included in the DIP Forecast and affirm that each such projection was prepared
in good faith on the basis of the estimates and assumptions that were believed
to be reasonable and fair in the light of conditions and circumstances existing
at the time made, it being understood by the Lender Parties 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.

 

(i)                                     DIP Budget.  The Loan Parties have disclosed any material
assumptions with respect to the projections included in the DIP Budget and
affirm that each such projection was prepared in good faith on the basis of the
estimates and assumptions that were believed to be reasonable and fair in the
light of conditions and circumstances existing at the time made, it being
understood by the Lender Parties 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.

 

94

 

(j)                                     Other
Information.  No information,
exhibit or report furnished by any Loan Party to the Administrative Agent or
any Lender Party in writing in connection with the negotiation of the Loan
Documents or pursuant to the terms of the Loan Documents contained any untrue
statement of a material fact or omitted to state a material fact necessary to
make the statements made herein and therein, taken as a whole, not misleading
at such time in light of the circumstances in which the same were made, it
being understood that for purposes of this Section 4.01(j), such factual
information does not include projections and pro forma financial information.

 

(k)                                  Litigation,
Etc.  Except for the Chapter 11
Cases, there is no action, suit, investigation, litigation or proceeding
affecting any Loan Party or any of its Subsidiaries, including any
Environmental Action, pending or, to the knowledge of the Borrower, threatened
before any court, governmental agency or arbitrator that (i) could
reasonably be expected to have a Material Adverse Effect or (ii) purports
to affect the legality, validity or enforceability of this Agreement, any Note
or any other Loan Document or the consummation of the transactions contemplated
hereby.

 

(l)                                     Compliance with
Margin Regulations.  (i) The
Borrower is not engaged in the business of extending credit for the purpose of
purchasing or carrying Margin Stock, and no proceeds of any Advance or any
Letter of Credit Disbursement will be used to purchase or carry any Margin
Stock or to extend credit to others for the purpose of purchasing or carrying
any Margin Stock.

 

(ii)                                  Following
application of the proceeds of each Advance or drawing under each Letter of
Credit Disbursement, not more than 25 percent of the value of the assets
(either of the Borrower only or of the Borrower and its Subsidiaries on a
Consolidated basis) subject to the provisions of Section 5.02(a) or
5.02(d) or subject to any restriction contained in any agreement or
instrument between the Borrower and any Lender Party or any Affiliate of any
Lender Party relating to Debt and within the scope of Section 6.01(e) will
be Margin Stock.

 

(m)                               Employee
Benefit Plans and ERISA Related Matters.  (i) Except as otherwise may occur as a
result of the Effects of Bankruptcy, each Plan is in compliance with ERISA, the
Internal Revenue Code and any applicable Requirement of 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 the Borrower, any Subsidiary or any ERISA
Affiliate; each Plan which is subject to Section 412 of the Internal
Revenue Code or Section 302 of ERISA satisfies the minimum funding standard,
within the meaning of such sections of the Internal Revenue Code or ERISA, or
has not applied for or received a waiver of the minimum funding standard or an
extension of any amortization period, within the meaning of Section 412 of
the Internal Revenue Code or Section 303 or 304 of ERISA; neither any Loan
Party nor any ERISA Affiliate has incurred (or is reasonably expected to incur)
any liability to or on account of a Plan pursuant to Section 409, 502(i),
502(1), 515, 4062, 4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or Section 436(f),
4971 or 4975 of the Internal Revenue Code or has been notified in writing that
it will incur any liability under any of

 

95

 

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 Loan
Party or any ERISA Affiliate; and no lien imposed under the Internal Revenue
Code or ERISA on the assets of any Loan Party or any ERISA Affiliate exists on
account of any Plan (or is reasonably likely to exist) nor has any Loan Party
or any ERISA Affiliate been notified in writing that such a lien will be
imposed on the assets of any Loan Party or any ERISA Affiliate on account of
any Plan, except to the extent that a breach of any of the foregoing
representations and warranties in this Section 4.01(m)(i) would not
result, individually or in the aggregate, in an amount of liability that would
be reasonably likely to have a Material Adverse Effect.  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 4.01(m)(i), 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 4.01(m)(i), 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.

 

(ii)                                  With respect to
each scheme or arrangement mandated by a government other than the United
States (a “Foreign Government Scheme or Arrangement”) and with respect
to each employee benefit plan maintained or contributed to by any Subsidiary of
any Loan Party that is not subject to United States law (a “Foreign Plan”),
except as in the aggregate could not reasonably be expected to have Material
Adverse Effect:

 

(A)                              Any employer
and employee contributions required by law or by the terms of any Foreign
Government Scheme or Arrangement or any Foreign Plan have been made, or if
applicable, accrued, in accordance with normal accounting practices.

 

(B)                                The fair market
value of the assets of each funded Foreign Plan, the liability of each insurer
for any Foreign Plan funded through insurance or the book reserve established
for any Foreign Plan, together with any accrued contributions, is sufficient to
procure or provide for the accrued benefit obligations, as of the date hereof,
with respect to all current and former participants in such Foreign Plan
according to the actuarial assumptions and valuations most recently used to
determine employer contributions to such Foreign Plan.

 

(C)                                Each Foreign
Plan required to be registered has been registered and has been maintained in
good standing with applicable regulatory authorities.

 

(n)                                 Environmental
Matters.  (i) Other than instances
of non-compliance that could not reasonably be expected to have a Material
Adverse Effect:  (A) the Borrower
and its Subsidiaries are in compliance with all Environmental Laws and all
Environmental Permits in all jurisdictions in which the Borrower and each of
its Subsidiaries are currently doing business (including, without limitation
having obtained

 

96

 

all material Environmental Permits required under
Environmental Laws); and (B) the Borrower will comply and cause each of
their Subsidiaries to comply with all such Environmental Laws (including,
without limitation, all Environmental Permits required under Environmental
Laws).

 

(ii)                                  Neither the
Borrower nor any of its Subsidiaries has treated, stored, transported 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.

 

(iii)                               Except for
non-compliance that could not reasonably be expected to result in a Material
Adverse Effect and except as disclosed in Schedule 4.01(n), all past
non-compliance with Environmental Laws and Environmental Permits has been
resolved without ongoing obligations or costs, and no circumstances exist that
could (A) form the basis of an Environmental Action against any Loan Party
or any of its Subsidiaries or any of the real properties that could have a
Material Adverse Effect or (B) cause any such property respectively owned
by any of them to be subject to any restrictions on ownership, occupancy,
current use or transferability under any Environmental Law.

 

(iv)                              Except as
disclosed in Schedule 4.01(n), none of the real properties currently or
formerly owned or operated by any Loan Party or any of its Subsidiaries is
listed or proposed for listing on the NPL or any analogous foreign, state or
local list or, to the knowledge of any Loan Party, is adjacent to any such real
property.

 

(v)                                 Except as
disclosed in Schedule 4.01(n) and for events or conditions that could not
reasonably be expected to result, either individually or in the aggregate, in a
material liability to any Loan Party, (A) neither any Loan Party or any of
its Subsidiaries, nor, to the knowledge of any Loan Party, any other Person has
owned or operated any underground or aboveground storage tanks or any surface
impoundments, septic tanks, pits, sumps or lagoons in which Hazardous Materials
are being or have been treated, stored or disposed on any real property
currently owned or operated by any Loan Party or any of its Subsidiaries or, to
the best of its knowledge, on any real property formerly owned or operated by
any Loan Party or any of its Subsidiaries, (B) there is no asbestos or
asbestos-containing material on any real property currently owned or operated
by any Loan Party or any of its Subsidiaries, (C) there are no wetlands or
any areas subject to any legal requirement or restriction in any way related to
wetlands (including, without limitation, requirements or restrictions related
to buffer or transition areas or open waters) at or affecting any real property
currently owned or operated by any Loan Party or any of its Subsidiaries, and (D) neither
any Loan Party or any of its Subsidiaries, nor, to the knowledge of any Loan
Party, any other Person has released or discharged Hazardous Materials on any
real property currently or formerly owned or operated by any Loan Party or any
of its Subsidiaries.

 

(vi)                              Except as
disclosed in Schedule 4.01(n) and for investigations, assessments or
actions that could not reasonably be expected to result, either individually or
in the aggregate, in a material liability to any Loan Party, neither any Loan
Party or any of its Subsidiaries, nor, to the knowledge of any Loan Party, any
other party, is

 

97

 

undertaking, either individually or together with
other potentially responsible parties, any investigation or assessment or
remedial or response action relating to any actual or threatened release,
discharge or disposal of material quantities or concentrations of Hazardous
Materials at any site, location or operation, either voluntarily or pursuant to
the order of any governmental or regulatory authority or the requirements of
any Environmental Law; and all Hazardous Materials generated, used, treated,
handled or stored at, or transported to or from, any real property currently or
formerly owned or operated by any Loan Party or any of its Subsidiaries have
been disposed of in a manner not reasonably expected to result in material
liability to any Loan Party or any of its Subsidiaries.

 

(o)                                 Securities Laws.  Neither any Loan Party nor any of its
Subsidiaries is an “investment company,” or an “affiliated person” of, or “promoter”
or “principal underwriter” for, an “investment company,” as such terms are
defined in the Investment Company Act of 1940, as amended.

 

(p)                                 Taxes.  Each of the Borrower and each other Subsidiary
has timely filed or caused to be filed all Tax returns and reports required to
have been filed and has paid or caused to be paid all Taxes required to have
been paid by it, except (i) Taxes that are being contested in good faith
by appropriate proceedings and for which such Person has set aside on its books
adequate reserves in conformity with GAAP, (ii) Taxes arising on or before
the Petition Date to the extent to that such Taxes are not required to be paid
as a consequence of the Chapter 11 Cases, or (iii) to the extent that the
failure to do so would not, in the aggregate, reasonably be expected to result
in a Material Adverse Effect.  As of the
date hereof, the Borrower is not a party to any tax sharing or similar arrangement
with any Subsidiary Guarantor or any Affiliates of a Subsidiary Guarantor.

 

(q)                                 Labor Matters.  Except as, in the aggregate, could not
reasonably be expected to have a Material Adverse Effect:  (i) there are no strikes or other labor
disputes against the Borrower or any other Subsidiary pending or, to the
knowledge of the Borrower, threatened in writing; (ii) hours worked by and
payment made to employees of the Borrower or any other Subsidiary have not been
in violation of the FLSA or any other equivalent and applicable law dealing
with such matters; and (iii) all payments due from the Borrower or any
other Subsidiary on account of employee health and welfare insurance have been
paid or accrued as a liability on the books of the relevant Person.

 

(r)                                    Prepetition
Debt.  Set forth on Schedule 4.01(r) hereto
is a complete and accurate list of all Prepetition Debt, showing as of the date
of such Schedule the principal amount outstanding thereunder, and such
principal amount has not been increased from that amount shown on such Schedule.

 

(s)                                  Owned Real Property. 
Set forth on Schedule 4.01(s) hereto is a complete and accurate
list as of the Closing Date of all real property owned by the Borrower or any
of its Subsidiaries, showing as of the Closing Date the street address, county or
other relevant jurisdiction, state and record owner thereof.  The Borrower or such Subsidiary has good,
marketable and insurable fee simple title to such real property, free and clear
of

 

98

 

all Liens, other than Permitted Liens and Liens created under the Loan
Documents.  To the best of the Borrower’s
knowledge, except as set forth on Schedule 4.01(s), all of the improvements
located on the properties listed on Schedule 4.01(s) lie entirely within
the boundaries of such properties and none of such improvements violate any
minimum setback requirements, other dimensional regulations or restrictions of
record.

 

(t)                                    Leased Real Property. 
Set forth on Schedule 4.01(t) hereto is a complete and accurate
list as of the Closing Date of all leases of real property under which the
Borrower or any of its Subsidiaries is the lessee, showing as of the Closing
Date the street address, county or other relevant jurisdiction, state, lessor,
lessee, expiration date and annual rental cost thereof.  Each such lease is the legal, valid and
binding obligation of the lessor thereof, enforceable in accordance with its
terms.

 

(u)                                 Leases of Real Property. 
Set forth on Schedule 4.01(u) hereto is a complete and accurate
list as of the Closing Date of all leases (the “Leases”) of real
property under which the Borrower or any of its Subsidiaries is the landlord,
showing as of the Closing Date the street address, county or other relevant
jurisdiction, state, lessor, lessee, expiration date and annual rental cost
thereof.  Each such lease is the legal,
valid and binding obligation of the lessee thereof, enforceable in accordance
with its terms.]

 

(v)                                 Intellectual
Property.  Set forth
on Part A of Schedule 4.01(v) hereto is a complete and accurate list
as of the Closing Date of all United States registered patents, trademarks,
trade names, service marks and copyrights, and all applications therefor and
licenses thereof, of the Borrower or any of its Subsidiaries, showing as of the
Closing Date the jurisdiction in which registered and the registration
numbers.  Set forth on Part B of
Schedule 4.01(v) hereto is a list, which is complete and accurate in all
material respects, as of the Closing Date of all other registered patents,
trademarks, trade names, service marks and copyrights, and all applications
therefor and licenses thereof, of the Borrower or any of its Subsidiaries,
showing as of the Closing Date the jurisdiction in which registered and the
registration numbers.

 

(w)                               Collateral
Documents.  Upon entry
by the Bankruptcy Court of the Interim Borrowing Order (or the Final Borrowing
Order, when applicable), the Interim Borrowing Order (or the Final Borrowing
Order when applicable) will be effective to create in favor of the Secured
Parties a legal, valid, enforceable and fully perfected security interest in
the Collateral of the U.S. Debtors, in each case prior and superior in right to
any other Person, except (i) the Carve-Out, (ii) the Senior Third
Party Liens and (iii) any other Liens permitted by Section 5.02(a).
Subject to the Interim Borrowing Order and the entry by the Bankruptcy Court of
the Final Borrowing Order, each Collateral Document is effective to create in
favor of the Administrative Agent, for the benefit of the Secured Parties, a
legal, valid and enforceable security interest in the Collateral described
therein and, subject to the making of all appropriate filings, recordings,
endorsements, notarizations, stampings, registrations and/or notifications
required under applicable law, shall constitute fully perfected Liens on, and
security interests in (to the extent intended to be created thereby), all right
title and interest of the grants under the applicable Collateral Documents in
such Collateral with the priority required by the Collateral Documents and the
Orders.

 

99

 

(x)                                   Anti-Terrorism
Laws.  To the best knowledge of the
Loan Parties, no such Loan Party nor any Subsidiary thereof: (i) is, or is
controlled by or is acting on behalf of, a Restricted Party; (ii) has
received funds or other property from a Restricted Party; or (iii) is in
breach of or is the subject of any action or investigation under any
Anti-Terrorism Law.

 

(y)                                 Borrowing Base
Calculation.  The
calculation by the Borrower of the Borrowing Base and the valuation thereunder
is complete and accurate.

 

(z)                                   Accounts.  The Administrative Agent may rely, in
determining which Accounts are Eligible Accounts, on all statements and
representations made by the Loan Parties with respect thereto.  The Borrower hereby warrants, with respect to
each Account at the time it is shown as an Eligible Account in a Borrowing Base
Certificate, that such Account is an Eligible Account.

 

(aa)                            Inventory.  The Administrative Agent may rely, in
determining which Inventory is Eligible Inventory, on all statements and
representations made by the Loan Parties with respect thereto.  The Borrower hereby warrants, with respect to
any Inventory at the time it is shown as being Eligible Inventory in a
Borrowing Base Certificate, that such Inventory is Eligible Inventory.

 

(bb)                          Material
Contracts.  No default
has occurred under any material contract entered into by any of the Loan
Parties after the Interim Borrowing Order Entry Date or entered into prior to
the Interim Borrowing Order Entry Date and, in the case of the U.S. Debtors
only, assumed (other than in respect of the Prepetition Credit Agreement and
the Senior Subordinated Note Indenture) or will occur as a result of the
Effects of Bankruptcy, if such default, either individually or in the
aggregate, could reasonably be expected to result in a Material Adverse Effect.

 

(cc)                            Chapter 11
Cases.  The Chapter 11 Cases were
commenced on the Petition Date in accordance with applicable law and proper
notice thereof and of the hearing for the approval of the Interim Borrowing
Order (or Final Borrowing Order, as applicable) has been given as identified in
the “Certificate of Service” filed with the Bankruptcy Court.

 

(dd)                          Orders.  On the Closing Date, the Interim Borrowing
Order (or the Final Borrowing Order, as applicable) shall have been
entered.  The Interim Borrowing Order or
(when entered) the Final Borrowing Order shall be in full force and effect and
shall not have been stayed, reversed, amended, modified or vacated without the
consent of the Instructing Group.

 

(ee)                            Enforcement of
Remedies.  Upon the
maturity (whether by acceleration or otherwise) of any of the Obligations
and/or Cash Management Obligations of the Loan Parties hereunder and under the
other Loan Documents and the Secured Cash Management Agreements, the
Administrative Agent, the Swingline Bank, each Issuing Bank, the Lenders and
the Cash Management Creditors shall be entitled to immediate payment of such
Obligations or Cash Management Obligations, as applicable, and to

 

100

 

enforce the remedies
provided for hereunder and under the other Loan Documents, without further
application to or order by the Bankruptcy Court.

 

ARTICLE
V

COVENANTS OF THE BORROWER

 

SECTION 5.01.Affirmative
Covenants.  So long as any Advance
shall remain unpaid, any Letter of Credit shall be outstanding or any Lender
Party shall have any Commitment hereunder, the Borrower will:

 

(a)                                  Compliance with
Laws, Etc.  Comply, and
cause each of its Subsidiaries to comply, in all material respects, with all
applicable laws, rules, regulations and orders, such compliance to include,
without limitation, compliance with ERISA, and the Racketeer Influenced and
Corrupt Organizations Chapter of the Organized Crime Control Act of 1970,
except such as may be contested in good faith or as to which a bona fide
dispute may exist and except to the extent that noncompliance therewith could
not reasonably be expected to have a Material Adverse Effect.

 

(b)                                 Payment of
Taxes, Etc.  Pay and
discharge, and cause each of its Subsidiaries to pay and discharge, before the
same shall become delinquent, (i) all material taxes, assessments and
governmental charges or levies imposed upon it or upon its property prior to
the date on which material penalties attach thereto, and (ii) all lawful
material claims that, if unpaid, might by law become a material Lien upon the
property of the Borrower or its Subsidiaries not otherwise expressly permitted
under this Agreement; provided, however, that neither the
Borrower nor any of its Subsidiaries shall be required to pay or discharge any
such tax, assessment, charge or claim (x) that is being contested in good
faith and by proper proceedings and as to which appropriate reserves (in the
good faith judgment of its management) are being maintained in accordance with
GAAP or (y) to the extent the non-payment would not result in a Material
Adverse Effect.

 

(c)                                  Maintenance of
Insurance.  Maintain,
and cause each of its Subsidiaries to maintain, insurance with responsible and
reputable insurance companies or associations (at the time the relevant
coverage is placed or renewed) in such amounts and covering such risks as is
usually carried by companies engaged in the same or similar businesses and
owning similar properties in the same general areas in which the Borrower or
such Subsidiary operates.

 

(d)                                 Preservation of
Corporate, Limited Liability Company and Partnership Existence, Etc.  Preserve and maintain, and cause each of its
Subsidiaries to preserve and maintain, its existence, legal structure, legal
name, rights (charter and statutory), permits, licenses, approvals, privileges
and franchises, except to the extent that failure to do so could not reasonably
be expected to have a Material Adverse Effect; provided, however,
that neither the Borrower nor any of its Subsidiaries shall be required to
preserve any right, permit, license, approval, privilege or franchise if the
Board of Directors of the Borrower or such Subsidiary shall determine that the
preservation thereof is no longer desirable in the conduct of the business of
the Borrower or such Subsidiary, as the case

 

101

 

may be, and that the loss
thereof is not disadvantageous in any material respect to the Borrower, such
Subsidiary or the Lender Parties.

 

(e)                                  Conduct of
Business.  From and
after the Closing Date, engage, and cause its Subsidiaries (taken as a whole)
to engage, primarily in (i) the vehicle component business and any
activity or business incidental, directly related or similar thereto, or any
other lines of business carried on by the Borrower and its Subsidiaries on the
Closing Date or utilizing the Borrower’s or Subsidiaries’ manufacturing
capabilities on the Closing Date and (ii) other businesses or activities
that constitute a reasonable extension, development or expansion thereof or
that are ancillary or reasonably related thereto.

 

(f)                                    Visitation and
Inspection Rights.  At any
reasonable time and from time to time, upon reasonable notice and during normal
business hours, permit any authorized representatives designated by the
Retained Advisors, the Administrative Agent or the Majority Lenders to examine
and make copies of and abstracts from the records and books of account of, and
visit the properties, plants and facilities of, the Borrower and any of its
Subsidiaries, and to discuss the affairs, finances and accounts of the Borrower
and any of its Subsidiaries with any of their officers or directors and with
their independent certified public accountants; provided that the
Borrower may, if it so chooses, be present at or participate in any such
discussion.  Provide, and cause each of
its Subsidiaries to provide, to the Retained Advisors, the Administrative Agent
and the Majority Lenders reasonable access to information (including historical
information and including information as to strategic planning, cash and
liquidity management, operational and restructuring activities) and personnel,
including, without limitation, regularly scheduled meetings with senior
management and outside financial advisors to the Borrower and its Subsidiaries.
After the Closing Date, if requested by the Administrative Agent, on Thursday
(or the immediately succeeding Business Day if Thursday is not a Business Day)
of each week (or, if agreed to by the Administrative Agent, every second week)
, and on such other dates requested by the Administrative Agent on providing
the Borrower with two (2) Business Days’ prior written notice, the
Borrower shall provide the Administrative Agent and its advisors with an update
(via a meeting or conference call with the Borrower’s senior management and/or
its advisors) on the weekly financial information provided to the Board of
Directors, the ongoing financial performance, operations and liquidity of the
Borrower and its Subsidiaries and the progress toward a proposal for an
amendment to or restructuring of the Obligations under the Prepetition Credit
Agreement and the Senior Subordinated Notes.

 

(g)                                 Appraisals and
Field Exams.  Permit, and
cause each of its Subsidiaries to permit, employees and designated
representatives of the Retained Advisors or the Administrative Agent, in each
case at the Loan Parties’ expense at reasonable times and (except during the
continuance of an Event of Default) upon reasonable notice, to conduct
appraisals of Inventory and field exams, in each case, at such times as the
Administrative Agent reasonably deems necessary or appropriate (it being
acknowledged that a single field exam, appraisal or inspection may entail
visits to multiple locations of books, records and assets of the Loan Parties);
provided that (x) prior to the Original Termination Date, the
Administrative Agent shall not request that more than two appraisals of
Inventory and two field exams be conducted and (y) during the period from

 

102

 

and after the Extension
Effective Date to the Extended Termination Date, the Administrative Agent shall
not request that more than one appraisal of Inventory and one field exam be
conducted; provided  further that the foregoing limitations  shall not apply at any time while an Event of
Default is continuing.  In connection
with any such appraisal or field exam, such employees and designated representatives
of the Retained Advisors and the Administrative Agent  shall be permitted (i) to visit and
inspect, in consultation with officers of the Borrower or such Subsidiary
(other than during an Event of Default, in which case, no such consultation
shall be required) any properties or facilities of the Borrower or such Subsidiary,
(ii) to examine the books of account of the Borrower or such Subsidiary
and discuss the affairs, finances and accounts of the Borrower or such
Subsidiary with, and be advised as to the same by, its and their officers and
independent accountants (provided that an officer of the Borrower and its
Subsidiaries may attend such discussions with such accountants) and
(iii) to verify Eligible Accounts and/or Eligible Inventory (subject to
reasonable requirements of confidentiality, including requirements imposed by
law or contract). The Retained Advisors and the Administrative Agent shall have
no duty to the Borrower or any of its Subsidiaries to make any inspection, or
to share any results of any inspection, appraisal or report with the Borrower
or any of its Subsidiaries.  The Borrower
and each of its Subsidiaries acknowledge that all inspections, appraisals and
reports are prepared by the Retained Advisors and the Administrative Agent for
the benefit of the Lenders and for their purposes, and neither the Borrower nor
any of its Subsidiaries shall be entitled to rely upon them.

 

(h)                                 Keeping of
Books.  Keep, and cause each of its
Subsidiaries to keep, proper books of record and account, in which full and
correct entries shall be made of all financial transactions and the assets and
business of the Borrower and each such Subsidiary in accordance with generally
accepted accounting principles in effect from time to time.

 

(i)                                     Maintenance of
Properties, Etc.  Maintain
and preserve, and cause each of its Subsidiaries to maintain and preserve, all
of its properties that are used or useful in the conduct of its business
(including intellectual property) in good working order and condition, ordinary
wear and tear excepted, in each case consistent with past practice, and will
from time to time make or cause to be made all appropriate repairs, renewals
and replacements thereof, except where the failure to do so would not
reasonably be likely to have a Material Adverse Effect.

 

(j)                                     Transactions
with Affiliates.  Conduct, and
cause each of its Subsidiaries to conduct, all transactions otherwise permitted
under the Loan Documents with any of their Affiliates on terms that are fair
and reasonable and no less favorable to the Borrower or such Subsidiary than it
would obtain in a comparable arm’s length transaction with a Person not an
Affiliate, other than (i) transactions between or among the Loan Parties
and any Subsidiaries of the Borrower; (ii) reasonable and customary fees paid
to members of the Borrower’s board of directors; (iii) the transactions
permitted by Section 5.02(f); and (iv) transactions otherwise
expressly permitted hereunder.

 

103

 

(k)                                  Covenant to
Guarantee Obligations and to Give Security. When (i) any new
Subsidiary of the Borrower is formed, acquired or designated by the Borrower or
any of its Subsidiaries, or (ii) the acquisition of any property, real or
personal, by any Loan Party is made, and such property, in the judgment of the
Administrative Agent, shall not already be subject to a perfected first
priority security interest in favor of the Administrative Agent for the benefit
of the Secured Parties, then, in each case at the expense of the Borrower:

 

(A)                              within 20 days
after such formation, acquisition or designation, in the case of a new
Subsidiary that is a Domestic Subsidiary of the Borrower or any of its
Subsidiaries, cause each such Subsidiary to duly execute and deliver to the
Administrative Agent an Assumption Agreement under which such Subsidiary becomes
a Subsidiary Guarantor and a Grantor (as defined in the Guarantee and
Collateral Agreement); provided that no Subsidiary which is not
wholly-owned (directly or indirectly) by the Borrower and the organizational
documents or agreements with other shareholders of which prohibit the
execution, delivery or performance of any such assumption agreement shall be
required to execute, deliver or perform such assumption agreement if, after
using its reasonable efforts, the Borrower has failed to obtain any necessary
consents or approvals for the issuance of such assumption agreement,

 

(B)                                within 20 days
after such formation, acquisition or designation in the case of a wholly-owned
Subsidiary which is a first-tier Subsidiary of (x) the Borrower or
(y) any other Subsidiary that is a Domestic Subsidiary, cause the Borrower
(or other relevant Subsidiary), to pledge the stock or other equity interests
of each such Subsidiary and to duly execute and deliver such amendments to the
Guarantee and Collateral Agreement or such other documents as the
Administrative Agent deems necessary or advisable to grant to the
Administrative Agent, for the benefit of the Secured Parties, a security
interest in 100% of the issued and outstanding stock or other equity interests
of such Subsidiary owned by such Loan Party, together with delivery to the
Administrative Agent of certificates representing such pledged stock or other
equity interests accompanied by undated stock powers or other appropriate
powers or assignments executed in blank; provided that, in the case of a
first-tier Subsidiary which is a Foreign Subsidiary, subject to the terms of
the Interim Borrowing Order or (when entered) the Final Borrowing Order, the
Borrower (or other relevant Subsidiary) shall not be required to pledge more
than 66% of the issued and outstanding stock or other equity interests of such
Subsidiary, and provided  further that the stock of any Subsidiary
which is not wholly-owned (directly or indirectly) will be owned by a
wholly-owned Subsidiary of the Borrower whose stock or other equity interests
have been pledged in accordance with the Loan Documents,

 

(C)                                within 20 days
after such request, formation or acquisition, furnish to the Administrative
Agent all necessary information with respect to such Subsidiary and its
Subsidiaries which may be required to update the applicable Schedules to this
Agreement and to the Collateral Documents, respectively,

 

104

 

(D)                               within 30 days
after such request, formation or acquisition, in the case of a new Subsidiary
that is a Domestic Subsidiary of the Borrower or any of its Subsidiaries, duly
execute and deliver, and cause each such Subsidiary, and cause each direct and
indirect parent of such Subsidiary to duly execute and deliver to the
Administrative Agent pledges, proper financing statements, assignments,
assumption agreements and other security agreements, as specified by and in
form and substance reasonably satisfactory to the Administrative Agent,
securing payment of all the Obligations of the Loan Parties under the Loan
Documents and constituting Liens on all such properties; provided that
no Subsidiary which is not wholly-owned (directly or indirectly) by the
Borrower and the organizational documents or agreements with other shareholders
of which prohibit the execution, delivery or performance of any such pledges,
proper financing statements, assignments, assumption agreements and other
security agreements shall be required to execute, deliver or perform such
pledges, proper financing statements, assignments, assumption agreements and
other security agreements if, after using its reasonable efforts, the Borrower
has failed to obtain any necessary consents or approvals for the execution,
delivery or performance of such pledges, proper financing statements,
assignments, assumption agreements and other security agreements,

 

(E)                                 within 30 days
after such request, formation or acquisition, duly execute and deliver, and
cause each such Subsidiary, and cause each direct and indirect parent of such
Subsidiary (other than any non-Debtor Subsidiary) to take whatever action
(including, without limitation, the recording of mortgages (if required), the
filing of Uniform Commercial Code financing statements, the giving of notices
and the endorsement of notices on title documents) may be necessary or
advisable in the opinion of the Administrative Agent to vest in the
Administrative Agent (or in any representative of the Administrative Agent
designated by it) valid and subsisting Liens on the properties purported to be
subject to the mortgages, pledges, assignments, assumption agreements and other
security agreements delivered pursuant to this Section 5.01(k),
enforceable against all third parties in accordance with their terms,

 

(F)                                 at any time and
from time to time, promptly execute and deliver any and all further instruments
and documents and take all such other action as the Administrative Agent may
deem necessary or desirable in obtaining the full benefits of, or in perfecting
and preserving the Liens of, such guaranties, mortgages, pledges, assignments,
security agreements and assumption agreements, and

 

(G)                                within 60 days
after such request, deliver to the Administrative Agent a signed copy of a
favorable opinion, addressed to the Administrative Agent, of counsel for the
Borrower reasonably acceptable to the Administrative Agent as to the matters
contained in this Section 5.01(k), as to such guarantees and security
agreements being legal, valid and binding obligations of each of the Borrower
and their respective Subsidiaries enforceable in accordance with their

 

105

 

terms and as to such other
matters as the Administrative Agent may reasonably request.

 

(l)                                     Compliance with
Environmental Laws.  Comply, and
cause each of its Subsidiaries and all lessees and other Persons operating or
occupying its properties to comply, in all material respects, with all
applicable Environmental Laws and Environmental Permits; obtain and renew and
cause each of its Subsidiaries to obtain and renew all Environmental Permits
necessary for its operations and properties; and conduct, and cause each of its
Subsidiaries to conduct, any investigation, study, sampling and testing, and
undertake any cleanup, removal, remedial or other action necessary to remove
and clean up all Hazardous Materials from any of its properties, in accordance
with the requirements of all Environmental Laws; provided, however,
that neither the Borrower nor any of its Subsidiaries shall be required to
undertake any such cleanup, removal, remedial or other action to the extent
that its obligation to do so is being contested in good faith and by proper
proceedings and appropriate reserves are being maintained with respect to such
circumstances.

 

(m)                               Preparation of
Environmental Reports.  At
the request of the Administrative Agent from time to time, provide to the
Lender Parties within 60 days after such request, at the expense of the
Borrower, an environmental site assessment report for any of its or its
Subsidiaries’ properties described in such request, prepared by an
environmental consulting firm acceptable to the Administrative Agent,
indicating the presence or absence of Hazardous Materials and the estimated
cost of any compliance, removal or remedial action in connection with any
Hazardous Materials on such properties; without limiting the generality of the
foregoing, if the Administrative Agent determines at any time that a material
risk exists that any such report will not be provided within the time referred
to above, the Administrative Agent may retain an environmental consulting firm
to prepare such report at the expense of the Borrower, and the Borrower hereby
grants and agrees to cause any Subsidiary that owns any property described in such
request to grant at the time of such request, to the Administrative Agent, the
Lender Parties, such firm and any agents or representatives thereof an
irrevocable non exclusive license, subject to the rights of tenants, to enter
onto its or their respective properties to undertake such an assessment.

 

(n)                                 Retention of
Advisors to the Debtors.  The
Loan Parties shall continue to retain Zolfo Cooper as restructuring advisors
and/or other financial consultants and advisors reasonably acceptable to the
Administrative Agent and the Majority Lenders.

 

(o)                                 Financial
Advisor.  The Administrative Agent, on
behalf of the Lenders, shall have the right to retain or appoint or to cause
its counsel to retain or appoint for its benefit a restructuring or financial
advisor to assist with the audit, examination or monitoring of Collateral or to
conduct any liquidation analysis, in each case which the Administrative Agent
in its discretion determines is necessary or advisable and the Borrower shall
be liable for all reasonable and documented costs and expenses incurred by the
Administrative Agent with respect to such restructuring or financial
advisor.  In connection with such
retention, the Borrower shall pay the fees of such restructuring or financial
advisor promptly upon being invoiced therefor and shall use its commercially

 

106

 

reasonable efforts to
cooperate, and to cause its own advisors and its Subsidiaries to cooperate with
such restructuring or other financial advisor in the performance of its duties
as an advisor in accordance any applicable engagement agreement relating to the
appointment and scope of work of such restructuring or financial advisor.

 

(p)                                 Know Your
Customer Requests.  If:

 

(i)                                     a Change in Law
after the Effective Date;

 

(ii)                                  any change in
the status of a Loan Party or the composition of the shareholders of a Loan
Party after the Effective Date; or

 

(iii)                               a proposed
assignment or transfer by a Lender of any of its rights and obligations under
this Agreement to a party that is not a Lender prior to such assignment or
transfer,

 

obliges the Administrative
Agent or any Lender (or, in the case of paragraph (iii) above, any
prospective new Lender) to comply with “know your customer” or similar
identification procedures in circumstances where the necessary information is
not already available to it, promptly upon the request of the Administrative
Agent, in its capacity as a Lender or on behalf of any Lender, to the Company
supply, or procure the supply of, such documentation and other evidence as is
reasonably requested in good faith by the Administrative Agent (for itself or
on behalf of any Lender, or, in the case of the event described in paragraph
(iii) above, on behalf of any prospective new Lender) in order for the
Administrative Agent, such Lender or, in the case of the event described in
paragraph (iii) above, any prospective new Lender to carry out and be
satisfied it has complied with all necessary “know your customer” or other
similar checks under all applicable laws and regulations pursuant to the
transactions contemplated in the Loan Documents.

 

(q)                                 Certain
Milestones.  Within the
time periods set forth below, perform each action with respect to the Cases of
the Debtors set forth below:

 

(A)                              by the date
which is 30 days after the Petition Date, deliver to the Lenders a draft
Approved Plan and disclosure statement;

 

(B)                                by the date
which is 55 days after the Petition Date, file an Approved Plan and disclosure
statement with the Bankruptcy Court;

 

(C)                                by the date
which is 90 days after the Petition Date, obtain approval by the Bankruptcy
Court of the disclosure statement, together with the solicitation, balloting
and voting procedures and other related relief, related to such Approved Plan

 

(D)                               by the date
which is 175 days after the Petition Date, obtain confirmation of such Approved
Plan by the Bankruptcy Court pursuant to section 1129 of the Bankruptcy Code;

 

107

 

(E)                                 by the date
which is 190 days after the Petition Date, cause the effective date of the
Approved Plan to occur; and

 

(F)                                 by the earlier
to occur of (i) the Original Termination Date or (if applicable) the
Extended Termination Date and (ii) the date which is 210 days after the
Petition Date, consummation of the Approved Plan.

 

(r)                                    Restricted
Accounts.  At all
times after the date which is 20 days after the Closing Date, with respect to
the Loan Parties only, cause to be maintained a system of Deposit Accounts
complying with each of the requirements set forth below:

 

(i)                                     Lockbox
Accounts.  Each Loan
Party shall instruct all Account Debtors of such Loan Party to remit all
payments to the applicable “P.O. Boxes” or “Lockbox Addresses” of the
Administrative Agent and certain financial institutions selected by the
Borrower and reasonably acceptable to the Administrative Agent (each, a “Collection
Bank”) with respect to all Accounts of such Account Debtor, which
remittances shall be collected by the applicable Collection Bank and deposited
in the applicable Lockbox Account (each of which shall be under the “control”
(as defined in Section 9-104 of the UCC) of the Administrative
Agent).  All amounts received by any Loan
Party and any Collection Bank in respect of any Account shall upon receipt be
deposited into a Lockbox Account or directly into the Core Concentration
Account.  Each Loan Party shall, along
with the Administrative Agent and each of the Collection Banks that maintain
one or more Lockbox Accounts and those banks in which any other Deposit Accounts
(other than any Excluded Account) are maintained, enter into on or prior to the
Closing Date or within 20 days thereof (or if any new Lockbox Accounts or
Deposit Accounts are opened after such date, on the date on which such new
Lockbox Accounts or Deposit Accounts are opened) separate Cash Management
Control Agreements, in each case, to be in form and substance reasonably
satisfactory to the Administrative Agent, it being agreed and acknowledged that
the control agreements delivered to the Administrative Agent pursuant to the
Prepetition Credit Agreement constitute Cash Management Control Agreements
under this Agreement and are satisfactory to the Administrative Agent for all
purposes under this Agreement. Each Lockbox Account shall be a “zero” balance account.
Each Collection Bank will be instructed to transfer all credit balances in each
Lockbox Account to the Core Concentration Account not later than the close of
business on each Business Day unless such amounts are otherwise
(A) required to be applied pursuant to Section 2.06(b)(i) or
(B) so long as no Dominion Period then exists, required to be retained in
any Lockbox Account to satisfy the payment of outstanding obligations owing in
respect of checks or similar obligations issued by any Loan Party, provided
that the aggregate amount retained in all such Lockbox Accounts pursuant to
this clause (B) shall not exceed that amount (as reasonably determined by
the Borrower) to cover the aggregate amounts of all such outstanding
obligations, and no other withdrawals shall be permitted except for withdrawals
authorized in writing by the Administrative Agent for ordinary course recalls
or credits relating to the Accounts or as set forth in any Cash Management
Control

 

108

 

Agreement entered into by
the Administrative Agent with respect to such Lockbox Account. Such
instructions will be irrevocable without the prior written consent of the
Administrative Agent.

 

(ii)                                  Core
Concentration Account.  The
Borrower will maintain a Deposit Account with DBTCA or a financial institution
reasonably acceptable to the Administrative Agent in the name of the Borrower
(the “Core Concentration Account”), which shall be under the “control”
(as defined in Section 9-104 of the UCC) of the Administrative Agent.  No amounts shall be deposited in the Core
Concentration Account except as expressly contemplated by
Section 5.01(r)(i), Section 5.01(r)(iv) and
Section 5.01(s).  During any
Dominion Period, the Cash Management Control Agreement relating to the Core
Concentration Account shall provide that all collected amounts held in the Core
Concentration Account shall be sent by ACH or wire transfer no less frequently
than once per Business Day to an account maintained by the Administrative Agent
for application pursuant to the instructions of the Administrative Agent
towards repayment of First Out Advances or Last Out Advances, as applicable, or
towards satisfaction of the First Out Obligations (but not to cash
collateralize Letters of Credit unless an Event of Default is continuing) or
Last Out Obligations, as applicable, in all cases subject to and as required
under Section 2.06(b)(iii) and, so long as no Event of Default shall
then be continuing, any balance remaining after such application shall be
released to the Borrower subject to and in accordance with
Section 2.06(b)(iii). Each Loan Party agrees that it will not cause any
proceeds of the Core Concentration Account to be otherwise redirected.

 

(iii)                               Cash Collateral
Account.  The Borrower and the
Subsidiary Guarantors will, within fifteen (15) Business Days of the Closing
Date, establish one or more Deposit Accounts with DBTCA (which shall be
interest bearing accounts at market rates) (each a “Cash Collateral Account”
and collectively the “Cash Collateral Accounts”), under the “control”
(as defined in Section 9-104 of the UCC) of the Administrative Agent, into
which (A) all cash received constituting payments in respect of Collateral
(other than Accounts) received after the exercise of remedies under this
Agreement or any other Loan Document or the taking of any Enforcement Action
shall be deposited by the Borrower and (B) amounts shall be deposited by
the Borrower as required pursuant to Section 2.03(g).

 

(iv)                              Other Accounts.  All amounts received in cash from any other
source that do not constitute payments in respect of Accounts of any Loan
Parties or payments in respect of other Collateral, shall upon receipt be
deposited into a Lockbox Account, directly into a Core Concentration Account or,
to the extent permitted hereunder in the case of amounts not constituting
payments in respect of Accounts of any Loan Parties or payments in respect of
other Collateral, an Excluded Account or a Disbursement Account.

 

(v)                                 At any time
when there is no Dominion Period, the Borrower and its Subsidiaries shall be
permitted to withdraw amounts from any Deposit

 

109

 

Account (including any
Lockbox Account or any Core Concentration Account) in accordance with the terms
of any applicable Cash Management Control Agreement.  During a Dominion Period, upon payment of all
outstanding First Out Advances and so long as no Event of Default is
continuing, with respect to each Deposit Account other than any Lockbox
Accounts or any Core Concentration Account, the operation of which are governed
by Section 5.01(r)(i) and (ii) above respectively, the Borrower
and its Subsidiaries may withdraw and apply any amount standing to the credit
of any such Deposit Account in accordance with the terms of any applicable Cash
Management Control Agreement and apply such amount in accordance with the terms
of this Agreement, provided that the Borrower shall not be permitted to
transfer amounts to any Excluded Account that is a petty cash account or to any
other Excluded Account in an amount which exceeds the amount required to fund
the activities for which funds deposited in such Excluded Account are applied
as set forth in the most recent DIP Budget delivered to the Administrative
Agent in accordance with Section 5.03(e).

 

(s)                                  Covered
Dispositions.  Cause all
Net Cash Proceeds received by any Loan Party in respect of any Covered
Disposition in cash or Cash Equivalents to be deposited directly upon receipt
in a Lockbox Account or the Core Concentration Account.

 

(t)                                    Qualified
Secured Cash Management Agreements.  At any time prior to or after any Loan Party
shall enter into any Secured Cash Management Agreement, the applicable Loan
Party and the Lender (or Affiliate thereof) party thereto shall, if it wishes
that the Cash Management Obligations owed under the respective Secured Cash
Management Agreement be treated as a Primary Obligation with respect to the
priority of payment of proceeds of the Collateral in accordance with the
waterfall provisions set forth in Section 6.02, notify the Administrative
Agent in writing (to be acknowledged by the Administrative Agent) that such
Secured Cash Management Agreement is to be a qualified Secured Cash Management
Agreement (a “Qualified Secured Cash Management Agreement”). Until such
time as the applicable Loan Party and Lender (or Affiliate thereof) delivers
(and the Administrative Agent acknowledges) such notice as described above,
such Secured Cash Management Agreement shall not constitute a Qualified Secured
Cash Management Agreement.  The parties
hereto understand and agree that the provisions of this
Section 5.01(t) are made for the benefit of the Lenders and their
Affiliates which become parties to Qualified Secured Cash Management
Agreements, and agree that any amendments or modifications to the provisions of
this Section 5.01(t) shall not be effective with respect to any
Qualified Secured Cash Management Agreement entered into prior to the date of
respective amendment or modification of this Section 5.01(t) (without
the written consent of the relevant parties thereto).  Notwithstanding any such designation of a
Secured Cash Management Agreement as a Qualified Secured Cash Management
Agreement, no provider or holder of any such Qualified Secured Cash Management
Agreement shall have any voting or approval rights hereunder (or be deemed a
Lender) solely by virtue of its status as the provider of such agreements or
the Cash Management Obligations owing thereunder, nor shall their consent be
required (other than in their capacities as a Lender to the extent applicable)
for any matter hereunder or under any of the other Loan Documents,

 

110

 

including without
limitation, as to any matter relating to the Collateral or the release of
Collateral or guarantors.  The
Administrative Agent accepts no responsibility and shall have no liability for
the calculation of the exposure owing by the Loan Parties under any such
Qualified Secured Cash Management Agreement or the amount of any Cash
Management Reserve, and shall be entitled in all cases to rely on the
applicable Lender (or Affiliate thereof) and the applicable Loan Party party to
such agreement for the calculation thereof. 
Such Lender (or Affiliate thereof) and the applicable Loan Party party
to any such agreement each agrees to provide the Administrative Agent with the
calculations of all such exposures and reserves, if any, at such times as the
Administrative Agent shall reasonably request, and in any event, not less than
monthly (unless other agreed to by the Administrative Agent).

 

SECTION 5.02.Negative
Covenants.  So long as any Advance
shall remain unpaid, any Letter of Credit shall be outstanding or any Lender
Party shall have any Commitment hereunder, the Borrower will not, at any time:

 

(a)                                  Liens, Etc.  Create, incur, assume or suffer to exist, or
permit any of its Subsidiaries to create, incur, assume or suffer to exist, any
Lien on or with respect to any of its properties of any character (including,
without limitation, accounts) whether now owned or hereafter acquired, except:

 

(i)                                     Liens created
under the Loan Documents and/or the Interim Borrowing Order or the Final
Borrowing Order, as applicable;

 

(ii)                                  Permitted
Liens;

 

(iii)                               Liens existing
on the date hereof and described on Schedule 5.02(a) hereto (including
pursuant to the Prepetition Loan Documents);

 

(iv)                              (A) purchase
money Liens upon or in real property or equipment acquired or held by the
Borrower or any of its Subsidiaries in the ordinary course of business to
secure the purchase price of such property or equipment or to secure Debt
incurred solely for the purpose of financing the acquisition, construction or
improvement of any such property or equipment to be subject to such Liens, or
Liens existing on any such property or equipment at the time of acquisition
(other than any such Liens created in contemplation of such acquisition that do
not secure the purchase price), or extensions, renewals or replacements of any
of the foregoing for the same or a lesser amount and (B) Liens to secure
Debt incurred within 270 days of the acquisition, construction or improvement
of fixed or capital assets to finance the acquisition, construction or
improvement of such fixed or capital assets; provided, however,
that no such Lien shall extend to or cover any property other than the property
or equipment being acquired, constructed or improved, and no such extension,
renewal or replacement shall extend to or cover any property not theretofore
subject to the Lien being extended, renewed or replaced; and provided  further,
however, that the aggregate principal amount of the Debt secured by
Liens permitted by this clause (iv) shall not exceed the aggregate amount
permitted under Section 5.02(b)(v) at any time

 

111

 

outstanding and that any
such Debt shall not otherwise be prohibited by the terms of the Loan Documents;

 

(v)                                 Liens arising
in connection with Capitalized Leases permitted under Section 5.02(b)(v); provided
that no such Lien shall extend to or cover any Collateral or assets other than
the assets subject to such Capitalized Leases;

 

(vi)                              the
replacement, extension or renewal of any Lien permitted hereunder upon or in
the same property theretofore subject thereto or the replacement, extension or
renewal (without increase in the amount or change in any direct or contingent
obligor) of the Debt secured thereby;

 

(vii)                           Liens in
respect of the (i) Prepetition Loan Documents as adequate protection
granted pursuant to the Interim Borrowing Order or Final Borrowing Order, as
applicable, which Liens are junior to the Liens contemplated hereby in favor of
the Secured Parties, it being understood that the Interim Borrowing Order or
the Final Borrowing Order, as applicable, provides that the holder of such
junior Liens shall not be permitted to take any action to enforce their rights
with respect to such junior Liens so long as any of the Obligations or Letters
of Credit shall remain outstanding or any Revolving Credit Commitment shall be
in effect; and

 

(viii)                        Liens incurred
by Accuride Canada in an amount not to exceed $500,000.

 

Notwithstanding
the foregoing, Liens permitted in clauses (ii) through (viii) of this
Section 5.02(a) shall at all times be junior and subordinate to the
Liens securing the Obligations under the Loan Documents and the Orders, other
than the Carve-Out and the Senior Third Party Liens.

 

(b)                                 Debt.  Create, incur, assume or suffer to exist, or
permit any of its Subsidiaries to create, incur, assume or suffer to exist, any
Debt other than:

 

(i)                                     Prepetition
Debt outstanding on the Petition Date and set forth in Schedule
4.01(r) (including, without limitation, the Indebtedness under the
Prepetition Loan Documents and the Senior Subordinated Notes) without giving
effect to any extensions, renewals and replacements of any such Debt;

 

(ii)                                  Debt under the
Loan Documents;

 

(iii)                               Debt in respect
of Hedge Agreements incurred in the ordinary course of business and providing
protection to the Borrower and its Subsidiaries against fluctuations in
currency values or commodity prices in connection with the Borrower’s or any of
its Subsidiaries’ operations, in either case; provided that such Hedge
Agreements are bona fide hedging activities and
are not entered into for speculative purposes;

 

112

 

(iv)                              (A) Debt
owed by any Loan Party to any other Loan Party, (B) Debt owed to any
non-Debtor Subsidiary by any Loan Party and (C) Debt owed by any
non-Debtor Subsidiary to any Loan Party in an amount not exceeding the amount
of any Investment made pursuant to, and permitted under, Section 5.02(e)(vi),
provided that, (x) to the extent that the Administrative Agent
requires that an intercompany loan is evidenced by a promissory note, such
promissory note shall be in form and substance satisfactory to the Administrative
Agent, (y) each intercompany loan owed by a Loan Party to a non-Debtor
Subsidiary shall be subject to subordination provisions in form and substance
satisfactory to the Administrative Agent to be contained in the respective
intercompany note, subordinating the obligations of such Loan Party thereunder
to the Obligations of such Loan Party under this Agreement and the other Loan
Documents and (z) each intercompany loan owed to a Loan Party shall be
pledged by that Loan Party as security under the Collateral Documents and will
be subject to a perfected Lien granted in favor of the Administrative Agent and
the Lenders pursuant to the Orders;

 

(v)                                 Debt secured by
Liens permitted by Section 5.02(a)(iv) and Capitalized Leases arising
after the Closing Date not to exceed an aggregate principal amount equal to
$2,500,000 at any time outstanding;

 

(vi)                              endorsement of
negotiable instruments for deposit or collection or similar transactions in the
ordinary course of business;

 

(vii)                           Debt consisting
of guaranty Obligations in the ordinary course of business of the obligations
of suppliers, customers, franchisees and licensees of the Borrower and its
Subsidiaries;

 

(viii)                        Debt in respect
of any bankers’ acceptance, letter of credit, warehouse receipt or similar
facilities entered into in the ordinary course of business;

 

(ix)                                Debt incurred
by Accuride Canada and any Mexican Subsidiary arising after the Closing Date in
an aggregate amount not to exceed $2,000,000; and

 

(c)                                  Mergers, Etc.  Merge into or consolidate with any Person or
permit any Person to merge into it, or permit any of its Subsidiaries to do so,
except that:

 

(i)                                     any Loan Party
(other than the Borrower) may merge into any other Loan Party (other than the
Borrower), and any non-Debtor Subsidiary of the Borrower may merge into or
consolidate with any other non-Debtor Subsidiary of the Borrower; provided
that, in the case of any such merger or consolidation involving a Loan Party,
the Person formed by such merger or consolidation shall be a Loan Party and in
the case of any such merger or consolidation involving a non-Debtor Subsidiary,
the Person formed by such merger or consolidation shall be a wholly-owned
Subsidiary of the Borrower, and

 

113

 

(ii)                                  any Subsidiary
of the Borrower may merge into or consolidate with the Borrower; provided
that that such Subsidiary shall have no Debt, other than Debt permitted to be
incurred by the Borrower under Section 5.02(b), and provided  further
the Borrower shall be the surviving entity in any such merger or consolidation.

 

(d)                                 Sales, Etc., of
Assets.  Sell, lease, transfer or
otherwise dispose of, or permit any of its Subsidiaries to sell, lease,
transfer or otherwise dispose of, any assets, or grant any option or other
right to purchase, lease or otherwise acquire any assets, except:

 

(i)                                     sales,
transfers or other dispositions of used or surplus equipment, vehicles,
inventory or other assets in the ordinary course of its business;

 

(ii)                                  sales or
contributions of equipment or other personal property to Subsidiaries or other
joint ventures; provided that the aggregate fair market value of the
assets so sold or contributed to any Foreign Subsidiary, non-Debtor Subsidiary
or such other joint ventures by the Borrower or any Subsidiary Guarantor
(determined, in each case, at the time of such sale or contribution) does not
exceed $2,000,000 during the term of this Agreement;

 

(iii)                               sales,
transfers or other dispositions of assets by any Loan Party, Accuride Canada or
any Mexican Subsidiary in an aggregate amount not to exceed $2,000,000; and

 

(iv)                              sales,
transfers, leases and other dispositions authorized pursuant to a confirmed
Reorganization Plan or an order of the Bankruptcy Court after notice and
hearing.

 

(e)                                  Investments in
Other Persons.  Make or
hold, or permit any of its Subsidiaries to make or hold, any Investment in any
Person other than:

 

(i)                                     Investments
existing on the Petition Date and described on Schedule 4.01(b);

 

(ii)                                  Investments by
the Borrower and its Subsidiaries in Cash Equivalents;

 

(iii)                               Investments by
the Borrower in Hedge Agreements permitted under Section 5.02(b)(iii);

 

(iv)                              Investments
consisting of intercompany Debt permitted under Section 5.02(b)(iv);

 

(v)                                 Investments
received in connection with the bankruptcy or reorganization of suppliers or
customers and in settlement of delinquent obligations of, and other disputes
with, customers arising in the ordinary course of business;

 

114

 

(vi)                              Investments in
Accuride Canada or any Mexican Subsidiary (A) that existed on the Petition
Date and as described on Part 1 of Schedule 4.01(b) and (B) additional
Investments in Accuride Canada or any Mexican Subsidiary after the Petition
Date; provided that (A) any such Investments in Accuride Canada or
any Mexican Subsidiary as permitted by this clause (vi) after the Closing
Date shall not exceed $2,000,000 in the aggregate at any time outstanding plus
the aggregate fair market value of assets contributed to Accuride Canada or any
Mexican Subsidiary as permitted by Section 5.02(d)(ii);

 

(vii)                           Investments to
the extent that payment for such Investment is made solely with capital stock
of the Borrower;

 

(viii)                        loans and
advances to employees of Accuride Canada in the ordinary course of business as
presently conducted in an aggregate amount not to exceed $250,000 at any time
outstanding; and

 

(ix)                                Investments
made by Accuride Canada in an amount not to exceed $500,000.

 

(f)                                    Dividends, Etc.  In the case only of the Borrower, declare or
pay any dividends, purchase, redeem, retire, defease or otherwise acquire for
value any of its capital stock or any warrants, rights or options to acquire
such capital stock, now or hereafter outstanding, return any capital to its
stockholders as such, make any distribution of assets, capital stock, warrants,
rights, options, obligations or securities to its stockholders as such, or
permit any of its Subsidiaries to purchase, redeem, retire, defease or
otherwise acquire for value any capital stock of the Borrower or any warrants,
rights or options to acquire such capital stock or to issue or sell any such
capital stock or any warrants, rights or options to acquire such capital stock,
except that, so long as no Default shall have occurred and be continuing at the
time of any action) the Borrower may repurchase shares of its capital stock
(and/or options or warrants in respect thereof) held by its officers, directors
and employees, so long as such repurchase is pursuant to, and in accordance
with the terms of, management and/or employee stock plans, stock subscription
agreements on shareholder agreements and in the amounts provided for in the DIP
Budget.

 

(g)                                 Prepayments,
Etc., of Debt.  Prepay,
redeem, purchase, defease or otherwise satisfy prior to the scheduled maturity
thereof in any manner, or make any payment in violation of any subordination
terms of, any Prepetition Debt (other than certain “critical vendor” and other
first day order payments that are approved by the Bankruptcy Court in an amount
not exceeding the projected amount of such payments set forth in the most
recent DIP Budget delivered by the Borrower to the Administrative Agent
pursuant to Section 5.03(e)) or Subordinated Debt, other than any
prepayment of (x) Debt owed by any Loan Party to any other Loan Party or (y) Debt
owed by any non-Debtor Subsidiary to any Loan Party.

 

(h)                                 Amendment, Etc.
of Documents.  Amend or
otherwise change, or consent to any amendment or change of, any of the terms of
any Prepetition Loan Document,

 

115

 

Subordinated Debt Document, Restructuring Support
Agreement or Restructuring Term Sheet in a manner that would be adverse to the
Lender Parties in any material respect or permit any of its Subsidiaries to do
any of the foregoing.

 

(i)                                     Partnerships,
Etc.  Become a general partner in
any general or limited partnership or joint venture which is not a limited
liability entity, or permit any of its Subsidiaries to do so, other than any
Subsidiary the sole assets of which consist of its interest in such partnership
or joint venture.

 

(j)                                     Negative Pledge.  Enter into or suffer to exist, or permit any
of its Subsidiaries to enter into or suffer to exist, any agreement prohibiting
or conditioning the creation or assumption of any Lien upon any of its property
or assets other than (i) in favor of the Secured Parties or (ii) in
connection with any Prepetition Debt, or (iii) customary restrictions in
the Senior Subordinated Note Indenture requiring equal and ratable liens if
other Subordinated Debt is secured.

 

(k)                                  New Collateral
Locations.  The
Borrower shall not, and shall not permit any Loan Party with assets in the
Borrowing Base to, open or establish any new location unless such Person
provides the Administrative Agent with ten (10) days prior written notice
of any such new location.

 

(l)                                     No Additional
Deposit Accounts, Etc.  With
respect to the Loan Parties, open, maintain or otherwise have, any checking,
savings, deposit, securities or other accounts at any bank or other financial
institution where cash or Cash Equivalents are or may be deposited or
maintained with any Person, other than (a) the Core Concentration Accounts
set forth on Part A of Schedule 5.02(l), (b) the Lockbox
Accounts set forth on Part B of Schedule 5.02(l), (c) the
Disbursement Accounts set forth on Part C of Schedule 5.02(l) and (d) the
Excluded Accounts set forth on Part D of Schedule 5.02(l); provided
that the Borrower or any other Loan Party may open a new Core Concentration
Account, Lockbox Account, Disbursement Account, Excluded Accounts or other
Deposit Accounts not set forth in such Schedule 5.02(l), so long as (A) prior
to opening any such account (other than Excluded Accounts) (i) the
Administrative Agent has consented in writing to such opening (which consent
shall not be unreasonably withheld or delayed) and the Borrower shall, and
shall procure that each other Loan Party will, give the Administrative Agent at
least ten (10) days’ prior notice of any such account to be opened, (ii) the
Borrower has delivered an updated Schedule 5.02(l) to the
Administrative Agent listing such new account and (iii) the financial
institution with which such account is opened, together with the Borrower or
the other Loan Party that has opened such account and the Administrative Agent,
have executed and delivered to the Administrative Agent a Cash Management
Control Agreement reasonably acceptable to the Administrative Agent and (B) in
respect of any account that is an Excluded Account, the Borrower notifies the
Administrative Agent that it has opened such Excluded Account.

 

(m)                               Pleadings in
the Chapter 11 Cases.  File, or
permit any of its Subsidiaries to file, any motion, application, objection,
plan, response, adversary complaint or similar pleading in the Chapter 11 Cases
that is inconsistent with the terms of the Restructuring Support Lockup
Agreements or might otherwise adversely affect the right or ability of

 

116

 

the Administrative Agent or the other Secured
Parties to receive indefeasible payment in full in cash of all of the
Obligations.

 

(n)                                 Carve-Out.  (a) Permit, or permit any of its
Subsidiaries to permit, any portion of the Carve-Out, any Cash Collateral or
any proceeds of the Advances to be used for the payment of the fees and
expenses of any Person incurred in challenging, or in relation to the challenge
of, (i) any of the Lenders’ Liens or claims, or the initiation or
prosecution of any claim or action against any Lender, including any claim
under Chapter 5 of the Bankruptcy Code, in respect of any of the Prepetition
Debt and (ii) any claims or causes of actions under the Prepetition Debt
against the Lenders, their respective advisors, agents and sub-agents,
including formal discovery proceedings in anticipation thereof, and/or
challenging any Lien of the Lenders under the Prepetition Debt, or permit more
than the applicable portion of the Carve-Out set forth in the Interim Borrowing
Order and/or the Final Borrowing Order, any Cash Collateral or proceeds of the
Advances to be used by any committee or any representative of the estate to
investigate claims and/or Liens of the Lenders under the Prepetition Debt or (b) permit,
or permit any of its Subsidiaries to permit, the Carve-Out, if and to the
extent invoked pursuant to the Orders, to be allocated other than on an equal
and ratable basis against the Prepetition Collateral.

 

(o)                                 Return of
Inventory.  Enter into,
or permit any of its Subsidiaries to enter into, any agreement to return any of
its Inventory to any of its creditors for application against any Prepetition
Debt, Prepetition trade payables or other Prepetition claims under Section 546(h) of
the Bankruptcy Code.

 

(p)                                 Critical Vendor
and Other Payments.  Make, or
permit any of its Subsidiaries to make, (i) any Prepetition “critical
vendor” payments or other payments on account of any creditor’s Prepetition
unsecured claims, (ii) payments on account of claims or expenses arising
under section 503(b)(9) of the Bankruptcy Code, (iii) payments in
respect of a reclamation program or (iv) payments under any management
incentive plan or on account of claims or expenses arising under Section 503(c) of
the Bankruptcy Code, except in each case in amounts and on terms and conditions
that (x) are approved by order of the Bankruptcy Court and (y) are
expressly permitted by the DIP Budget.

 

SECTION 5.03.Reporting
Requirements.  So long as any Advance
shall remain unpaid, any Letter of Credit shall be outstanding or any Lender
Party shall have any Commitment hereunder, the Borrower will furnish to the
Lender Parties:

 

(a)                                  Annual
Financials.  As soon as
available and in any event within 90 days after the end of each Fiscal Year, a
Consolidated balance sheet of (i) the Borrower and its Subsidiaries and (ii) if
the Borrower has any Subsidiaries, the Borrower and its Subsidiaries, in each
case as of the end of such Fiscal Year and the related Consolidated statements
of income and cash flow for such Fiscal Year setting forth in each case in
comparative form the corresponding figures for the previous Fiscal Year,
accompanied by an opinion, which shall be unqualified as to the scope of the
audit, of Deloitte & Touche LLP or other independent public
accountants of recognized standing acceptable

 

117

 

to the Majority Lenders, together with (A) management’s
discussion and analysis of the important operational and financial developments
during such fiscal year and (B) a certificate of the chief financial
officer of the Borrower stating that no Default has occurred and is continuing
or, if a default has occurred and is continuing, a statement as to the nature
thereof and the action that the Borrower has taken and proposes to take with
respect thereto.

 

(b)                                 Quarterly
Financials.  As soon as
available and in any event within 45 days after the end of each of the first
three Fiscal Quarters of each Fiscal Year, a Consolidated balance sheet of the
Borrower and its Subsidiaries and, if the Borrower has any Subsidiaries, the
Borrower and its Subsidiaries, in each case as of the end of such Fiscal
Quarter and the related Consolidated statements of income and cash flow for the
period commencing at the end of the previous Fiscal Quarter and ending with the
end of such Fiscal Quarter and for the period commencing at the end of the
previous Fiscal Year and ending with the end of such Fiscal Quarter, setting
forth in each case in comparative form the corresponding figures for the
corresponding period of the preceding Fiscal Year in reasonable detail and duly
certified (subject to year end audit adjustments) by the chief financial
officer of the Borrower as having been prepared in accordance with GAAP,
together with (i) a certificate of said officer stating that no Default
has occurred and is continuing or, if a Default has occurred and is continuing,
a statement as to the nature thereof and the action that the Borrower has taken
and proposes to take with respect thereto and (ii) management’s discussion
and analysis of the important operational and financial developments during
such quarterly accounting period.

 

(c)                                  Monthly
Financials. As soon as available and in any event within 30
days after the end of each calendar month (commencing with the third Fiscal
Quarter of the 2009 Fiscal Year and excluding the last calendar month in any
Fiscal Quarter), a Consolidated management internally generated balance sheet
of the Borrower and its Subsidiaries as of the end of such month and the
related Consolidated statements of income and cash flow for the period commencing
at the end of the previous month and ending with the end of such month, setting
forth in comparative form the corresponding figures for the corresponding
period of the preceding Fiscal Year.

 

(d)                                 DIP Forecast.  Furnish to the Administrative Agent for
prompt further distribution to each Lender (i) (x) on the Closing
Date a forecast statement (the “Interim DIP Forecast”), in form and
substance satisfactory to the Instructing Group and the Last Out Requisite
Lenders, of receipts and disbursements for each week from the Closing Date
through November 30, 2009, and for each month from December 2009 to June 2010,
of the Borrower and its Subsidiaries, broken down by week or month, as
applicable, and (y) not later than the two week anniversary of the Closing
Date, and using the same methodology used to calculate weekly information
contained in the Interim DIP Forecast as that used for the Interim DIP
Forecast, a forecast statement (the “Initial DIP Forecast”), in form and
substance satisfactory to the Instructing Group and the Last Out Requisite
Lenders, of receipts and disbursements broken down for each week from the
Closing Date though June 30, 2009 (including a weekly breakdown for each
month from December 2009 to June 2010, provided that no change shall
be made in respect of each weekly break down previously included in the Interim
DIP Forecast), of the Borrower

 

118

 

and its Subsidiaries, broken down by week, and in
the case of either (x) or (y), including, in the case of the Interim DIP
Forecast weekly and monthly, and in the case of the Initial DIP Forecast weekly
projected Capital Expenditures for such period, anticipated uses of the DIP
Facility for such period and the projected Borrowing Base calculation for such
period, and which shall provide, among other things, for the payment of the
fees and expenses relating to the DIP Facility, ordinary course administrative
expenses, bankruptcy-related expenses and working capital and other general
corporate needs, and (ii) if the effective date of the Reorganization Plan
has not occurred by the date which is six months after the Closing Date, an
update of the Initial DIP Forecast, in form and substance satisfactory to the
Instructing Group and the Last Out Requisite Lenders, which includes an updated
forecast statement for each week commencing from and including such date and
ending on or before the Original Termination Date or, if applicable, the
Extended Termination Date.

 

(e)                                  DIP Budget.  Furnish to the Administrative Agent for
prompt further distribution to each Lender, at the end of each week after the
Interim Borrowing Order Entry Date, a budget (the “DIP Budget”) in form
and substance satisfactory to the Instructing Group, a 13-week statement of
receipts and disbursements for the next 13 weeks of the Borrower and its
Subsidiaries, broken down by week, including weekly projected Capital
Expenditures for such period, anticipated weekly uses of the DIP Facility for
such period and the projected Borrowing Base calculation for each week included
in such period, and which shall provide, among other things, for the payment of
the fees and expenses relating to the DIP Facility, ordinary course
administrative expenses, bankruptcy-related expenses and working capital and other
general corporate needs (each a “DIP Budget”).

 

(f)                                    Accounts
Information.  Furnish to
the Administrative Agent at the times specified below, for prompt further
distribution to each Lender, the following information (the “Accounts
Information”):

 

(i)                                     at any time
upon the Administrative Agent’s request, on the date of occurrence of any Event
of Default and, thereafter, on the fifteenth day of each month while such Event
of Default is continuing, summary accounts payable and accounts receivable
aging reports (including the names and, if reasonably requested from time to
time by Agent, addresses of all account debtors, and with such accounts
receivable and accounts payable divided into such time intervals as Agent may
reasonably request) of the Borrower and any Subsidiary of the Borrower, and

 

(ii)                                  (x) at any
time when the Aggregate Exposure is less than $5,000,000, on the last Business
Day of each week and (y) at any time when the Aggregate Exposure equals or
exceeds $5,000,000, each Business day thereafter, a report in the form of Exhibit K
attached hereto to the Administrative Agent of the cash and Cash Equivalents
balances held by the Borrower and each Subsidiary Guarantor and the Excess
Availability as of the close of business on the immediately preceding Business
Day, including detail of the roll-forward of accounts receivable through the
previous Business Day.

 

119

 

(g)                                 Variance Report.  On October 14, 2009, and on each
Wednesday thereafter, furnish to the Administrative Agent for prompt further
distribution to each Lender a variance report (the “Variance Report”)
setting forth actual cash receipts and disbursements of the Borrower and its
Subsidiaries for the prior week ending on the previous Friday and setting forth
all the variances, on a line-item basis, from the amount set forth for such
week in (i) the most recent DIP Forecast and (ii) the most recent DIP
Budget delivered by the Borrower; each such report shall include explanations
for all material variances and shall be certified by the chief financial
officer of the Borrower.

 

(h)                                 ERISA.  Promptly after any Loan Party or any ERISA
Affiliate obtains knowledge, 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, a certificate of a Responsible
Officer of the Borrower setting forth details as to such occurrence and the
action, if any, that any Loan Party or any ERISA Affiliate is required or
proposes to take, together with any notices (required, proposed or otherwise)
given to or filed with or by or received by any Loan Party, any ERISA
Affiliate, the PBGC, a Plan participant (other than notices relating to an
individual participant’s benefits) or the Plan administrator with respect
thereto:  that a Reportable Event has
occurred; that a Plan has failed to satisfy the minimum funding standard,
within the meaning of Section 412 of the Internal Revenue Code or Section 302
of ERISA, or an application has been or 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 Internal Revenue 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 is reasonably expected to result in a
lien under ERISA or the Internal Revenue Code; that proceedings are reasonably
expected to 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 any Loan Party or any ERISA Affiliate
pursuant to Section 515 of ERISA to collect a delinquent contribution to a
Plan; that the PBGC has notified any Loan Party or any ERISA Affiliate of its
intention to appoint a trustee to administer any Plan; that any Loan Party or
any ERISA Affiliate has failed to make a required installment or other payment
pursuant to Section 412 of the Internal Revenue Code with respect to a
Plan; or that any Loan Party or any ERISA Affiliate has incurred or is
reasonably expected to 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(1), 515, 4062,
4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or Section 436(f), 4971 or
4975 or the Internal Revenue Code.

 

(i)                                     Environmental
Conditions.  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:

 

120

 

(i)                                     notice of any
pending or threatened Environmental Action against the Borrower or any of its
Subsidiaries or any Real Estate (as defined below);

 

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

 

(iii)                               notice of 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 ownership,
occupancy, use or transferability of such Real Estate under any Environmental
Law; and

 

(iv)                              notice of 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 or remedial action and the Borrower’s response
thereto.  The term “Real Estate” shall
mean land, buildings and improvements owned or leased by the Borrower or any of
its Subsidiaries, but excluding all operating fixtures and equipment, whether
or not incorporated into improvements.

 

(j)                                     Default or
Litigation Notice.  Promptly
upon any Responsible Officer of the Borrower or any of their respective
Subsidiaries obtaining 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 their respective
Subsidiaries that could reasonably be expected to result in a Material Adverse
Effect.

 

(k)                                  Amendment of
Documents.  Promptly
after the same shall become effective, copies of any amendment or supplement
to, or other modification of, any Prepetition Loan Document or Subordinated
Debt Document.

 

(l)                                     Securities
Reports/Other Information. 
Promptly after the sending or filing thereof, copies of all proxy
statements, financial statements and reports that any Loan Party or any of its
Subsidiaries sends to its stockholders, and copies of all regular, periodic and
special reports, and all registration statements, that any Loan Party or any of
its Subsidiaries files with the Securities and Exchange Commission or any
governmental authority that may be substituted therefor, or with any national
securities exchange (in each case to the extent not theretofore delivered to
the Lender Parties 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 Party may reasonably request in
writing from time to time.

 

(m)                               Borrowing Base
Certificate.  (i) On
the Closing Date, the Initial Borrowing Base Certificate, (ii) within two
weeks of delivery of the Initial Borrowing 

 

121

 

Base Certificate, a certificate updating the Initial
Borrowing Base Certificate using the same methodology used to prepare the
Initial Borrowing Base Certificate, and (iii) thereafter (A) from and
after the Interim Borrowing Order Entry Date, by 9.00 a.m. (New York City
time) on the following Thursday after the last Business Day of every second
calendar week, commencing on October 30, 2009 (or more frequently as the Administrative
Agent may reasonably request (and during the continuance of an Event of
Default, as frequently as the Administrative Agent may request) or as the
Borrower may elect), (B) at any time when the Aggregate Exposure exceeds
$5,000,000, by 9.00 a.m. (New York City time) on the following Thursday
after the last Business Day of every week thereafter (or more frequently as the
Administrative Agent may reasonably request (and during the continuance of an
Event of Default, as frequently as the Administrative Agent may request) or as
the Borrower may elect), (C) no later than the fifteenth day after the end
of each fiscal month and (D) after the date on which any Collateral
included in the Borrowing Base with a value in excess of $2,500,000 is sold or
disposed of in any non-ordinary course of business sale or disposition to any
Person other than a Loan Party, in each case a certificate substantially in the
form of Exhibit J setting forth the Borrowing Base (with supporting
calculations) in form and substance reasonably satisfactory to the
Administrative Agent, appropriately completed (with such modifications as to
format and presentation as may be reasonably requested by the Administrative
Agent upon five (5) Business Days’ notice) together with all attachments
and supporting documentation as contemplated thereby and certified as true,
correct and complete in all material respects by a Responsible Officer of the
Borrower (each, a “Bring Down Borrowing Base Certificate”).  The Borrowing Base Certificates shall be
prepared (1) as of August 31, 2009, in the case of the Initial
Borrowing Base Certificate, (2) in the case of the certificate to be
delivered within two weeks of the Initial Borrowing Base Certificate, as of September 30,
3009, (3) in the case of the Bring Down Borrowing Base Certificate to be
delivered every two weeks or every week, as of the last Business Day of the
preceding week (or, in the case of any voluntary delivery of a Bring Down
Borrowing Base Certificate at the election of the Administrative Agent, a
subsequent date), (4) in the case of the Bring Down Borrowing Base
Certificate to be delivered monthly, as of the last Business Day of the
preceding month, and (5) in the case of any Bring Down Borrowing Base
Certificate to be delivered after any non-ordinary course of business sale or
disposal of Collateral included in the Borrowing Base in excess of $2,500,000,
as of the last Business Day of the preceding week prior to the week in which
such sale or disposal is completed.  Each
such Borrowing Base Certificate shall include such other supporting information
as may be reasonably requested from time to time by the Administrative Agent
including information concerning the amount, composition and manner of
calculation of the Borrowing Base. 
Notwithstanding the foregoing, if, with respect to any month end
Borrowing Base Certificate delivery requirement set forth in clause (C) above,
the Borrower previously delivered (or is scheduled to deliver) a Borrowing Base
Certificate within five (5) Business Days before or after such month end
pursuant to another provision of this Section 5.03(m), the Borrower shall
not have to deliver such monthly Borrowing Base Certificate under clause (C) above.

 

(n)                                 Chapter 11 Case
Filings.  As soon as practicable in
advance of filing with the Bankruptcy Court or delivering to the Official
Creditors’ Committee appointed in the Chapter 11 Cases or to the United States
Trustee for the Chapter 11 Cases, as the case 

 

122

 

may be, the Final Borrowing Order (which must be in
form and substance satisfactory to the Administrative Agent), all pleadings,
motions, applications, judicial information, financial information and other
documents and, without limiting the generality of the foregoing, any and all
information and developments in connection with any proposed Asset Sale,
including, without limitation, any letters of intent, commitment letters or
engagement letters received by the Borrower or any of its Subsidiaries, and any
other event or condition which is reasonably likely to have a material effect
on Parent or any of its Subsidiaries or the Chapter 11 Cases, including,
without limitation, the progress of any disclosure statement or any proposed
Reorganization Plan.

 

(o)                                 Information Under
Other Documentation. 
Simultaneously with delivery to the Prepetition Secured Parties, each
notice, report or other information required to be delivered pursuant to the
terms of the Prepetition Loan Documents (other than routine administrative
notices and correspondence unrelated to any failure by any Debtor to perform
thereunder) to the extent not otherwise required to be delivered hereunder.

 

(p)                                 Additional
Information.  Promptly
following any request therefor, such other information regarding the operations,
business affairs and financial condition of the Borrower or any of its
Subsidiaries, or compliance with the terms of any Loan Document, as the
Administrative Agent (on behalf of itself or any Lender) may reasonably
request.

 

SECTION 5.04.Financial
Covenants.  So long as any Advance
shall remain unpaid, any Letter of Credit shall be outstanding or any Lender
Party shall have any Commitment hereunder, the Borrower will not:

 

(a)                                  Minimum
Cumulative Net Cash Flow. 
Permit, for any period set forth in the Minimum Net Cash Flow Schedule,
cumulative Net Cash Flow for the Borrower and its Subsidiaries for such period
to be less than the amount set forth opposite such period in the Minimum Net
Cash Flow Schedule.

 

The Borrower shall deliver (i) the Minimum Net Cash Flow Schedule
on the Closing Date, setting forth for each week from the Closing Date through November 30,
2009, and for each month from December 2009 to June 2010, the Minimum
Cumulative Net Cash Flow for such period and (ii) an amended Minimum Net
Cash Flow Schedule on or prior to the two week anniversary of the Closing Date,
in form and substance satisfactory to the Instructing Group, setting forth for
each week from the Closing Date through June 30, 2010 (including for each
week included in the months of December 2009 to June 2010, provided
that no change shall be made in respect of each week previously included in the
form of Minimum Net Cash Flow Schedule delivered on the Closing Date for each
week included in October 2009 and November 2009), the Minimum
Cumulative Net Cash Flow for such period.

 

(b)                                 Minimum
Liquidity.  Directly or
indirectly, permit as of the close of business on any Business Day, Liquidity
to be less than $25,000,000; provided that Liquidity shall be calculated
without giving effect to the unutilized amount of Commitments of any Defaulting
Lender. The Borrower shall, on each Business Day, 

 

123

 

deliver to the Administrative Agent a report setting
forth the Liquidity at the end of the previous Business Day.

 

(c)                                  Receipts and
Disbursements Variance. 
Permit for each 4-week period, commencing with the 4-week period ending
on Friday, November 6, 2009, (each such 4-week period, a “Variance
Period”):

 

(i)                                     the sum of the
line items comprising “Total Operating Disbursements” as set forth in the most
recent DIP Forecast for such Variance Period to exceed, on a percentage
deviation basis, the budgeted amount of “Total Operating Disbursements” set
forth in the most recent DIP Forecast for such Variance Period, by more than
125%; and

 

(ii)                                  the aggregate
amount of the sum of the line items comprising “Total Receipts” as set forth in
the most recent DIP Forecast for such Variance Period to be less, on a
percentage deviation basis, than 75% of the budgeted amount of “Total Receipts”
set forth in the most recent DIP Forecast for such Variance Period;

 

provided that to the extent the Borrower delays the payment of
any operating disbursement set forth for any Variance Period for any reason
(other than through the exercise of good faith business judgment: (w) as a
result of more favorable negotiated terms; (x) to defer disbursements that
do not materially and adversely affect any material trade creditor
relationship, (y) to dispute such payment or (z) to preserve, enhance
or avoid diminution in value of, any Collateral without materially and
adversely affect any material trade creditor relationship), such operating
disbursement shall be deemed to have been paid in the Variance Period  projected therefor in the most recent DIP
Forecast for the purposes of determining compliance with this Section 5.04(d).

 

(d)                                 FAS 159.  Notwithstanding any other provision contained
herein or in any other Loan Document, all terms of an accounting or financial
nature used herein or in any other Loan Document shall be construed, and all
computations of amounts and ratios referred to herein or in any other Loan
Document shall be made at all times hereafter, without giving effect to any
election under Statement of Financial Accounting Standards 159 (or any other
Financial Accounting Standard having a similar result or effect) to value any
Indebtedness or other liabilities of any Loan Party or any Subsidiary of any
Loan Party at “fair value”, as defined therein.

 

ARTICLE
VI

 

EVENTS
OF DEFAULT

 

SECTION 6.01.Events
of Default.  If any of the following
events (“Events of Default”) shall occur and be continuing:

 

(a)                                  Non-payment. the Borrower
shall (i) fail to pay any principal of any Advance owing by it when the
same shall become due and payable or (ii) fail to pay any 

 

124

 

interest on any Advance owing by it, or any fees
payable pursuant to Section 2.08, or any other amounts owing by it under
any Loan Document, in each case within three days after the due date thereof;
or

 

(b)                                 Representations
and Warranties. any representation or warranty made by any Loan
Party in any Loan Document or any certificate delivered or required to be
delivered pursuant thereto shall prove to have been untrue in any material
respect on the date as of which made or deemed made; or

 

(c)                                  Specific
covenants. the Borrower shall default in the due performance
or observance by it of any term, covenant or agreement required to be performed
or observed by it contained in Section 2.14, 2.20, 5.01(j), 5.01(k),
5.01(n), 5.01(q), 5.02, 5.03(a), 5.03(b), 5.03(c), 5.03(d), 5.03(e), 5.03(f),
5.03(g), 5.03(j), 5.03(m) or 5.04; or

 

(d)                                 Other defaults. any Loan
Party shall default in the due performance or observance by it of any other
term, covenant or agreement contained in any Loan Document on its part to be
performed or observed if such failure shall remain unremedied for 30 days after
written notice thereof shall have been given to the Borrower by the
Administrative Agent or any Lender Party; or

 

(e)                                  Cross-Default. any Loan
Party or any of its Subsidiaries shall fail to pay any principal of, premium or
interest on or any other amount payable in respect of any Debt incurred on or
after the Interim Borrowing Order Entry Date (other than the Obligations) that
is outstanding in a principal amount of at least $2,500,000 (or its equivalent
in another currency) either individually or in the aggregate (but excluding
Debt outstanding hereunder) of such Loan Party or such Subsidiary (as the case
may be), when the same becomes due and payable (whether by scheduled maturity,
required prepayment, acceleration, demand or otherwise), and such failure shall
continue after the applicable grace period, if any, specified in the agreement
or instrument relating to such Debt; or any other event shall occur or
condition shall exist under any agreement or instrument relating to any such
Debt and shall continue after the applicable grace period, if any, specified in
such agreement or instrument, if the effect of such event or condition is to
accelerate, or to permit the acceleration of, the maturity of such Debt or
otherwise to cause, or to permit the holder thereof to cause, such Debt to
mature; or any such Debt shall be declared to be due and payable or required to
be prepaid or redeemed (other than by a regularly scheduled required prepayment
or redemption), purchased or defeased, or an offer to prepay, redeem, purchase
or defease such Debt shall be required to be made other than in connection with
a sale of assets permitted by Section 5.02(d), in each case prior to the
stated maturity thereof; or

 

(f)                                    Bankruptcy, etc. any
Subsidiary of a Loan Party that is not a Debtor shall make a general assignment
for the benefit of creditors; or any proceeding shall be instituted by or
against any Subsidiary of a Loan Party that is not a Debtor seeking to
adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up,
reorganization, arrangement, adjustment, protection, relief, or composition of
it or its debts under any law relating to bankruptcy, insolvency or
reorganization or relief of debtors, or seeking the entry of an order for
relief or the appointment of a receiver, trustee, or other similar 

 

125

 

official for it or for any substantial part of its
property and, in the case of any such proceeding instituted against it (but not
instituted by it) that is being diligently contested by it in good faith,
either such proceeding shall remain undismissed or unstayed for a period of 45
days or any of the actions sought in such proceeding (including, without
limitation, the entry of an order for relief against, or the appointment of a
receiver, trustee, custodian or other similar official for, it or any substantial
part of its property) shall occur; or any Loan Party or any of its Subsidiaries
shall take any corporate action to authorize any of the actions set forth above
in this subsection (f); or

 

(g)                                 Judgments. one or more
Post Petition judgments or decrees shall be entered against the Borrower or any
of the Subsidiaries involving a liability of $5,000,000 or more in the
aggregate for all such judgments and decrees for the Borrower and its
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 or stayed or bonded pending appeal
within 60 days from the entry thereof; or

 

(h)                                 Invalidity of
Loan Documents. any provision of any Loan Document after delivery
thereof pursuant to Section 3.01 or 5.01(k) hereof shall for any
reason cease to be valid and binding on or enforceable against any Loan Party
to it, or any such Loan Party shall so state in writing or any of the Loan
Parties shall so assert in any pleading filed in any court; or

 

(i)                                     Collateral
Documents. any Collateral Document after delivery thereof
pursuant to Section 3.01 or 5.01(k) hereof shall for any reason
(other than pursuant to the terms thereof) cease to create a valid and
perfected first priority lien on and security interest in the Collateral
purported to be covered thereby; or

 

(j)                                     Noteholder
Restructuring Support Lockup Agreement. the Noteholder
Restructuring Support Lockup Agreement (or any material provision thereof)
shall for any reason (i) be repudiated by, cease to be valid and binding
on or be held to be unenforceable against, any party to it, or any party to it
shall so state in writing or so assert in any pleading filed in any court or
proceeding or (ii) be terminated, whether as a result of illegality, the
occurrence of an event of default thereunder, by operation of law, by the
exercise by any party of any termination right thereunder or for any other
reason; or

 

(k)                                  New Capital
Commitment Agreement.  the New
Capital Commitment Agreement (or any material provision thereof) shall for any
reason (i) be repudiated by, cease to be valid and binding on or be held
to be unenforceable against, any backstop commitment provider party to it, or
any party to it shall so state in writing or so assert in any pleading filed in
any court or proceeding or (ii) be terminated, whether as a result of
illegality, the occurrence of an event of default thereunder, by operation of
law, by the exercise by any party of any termination right thereunder or for
any other reason; or

 

(l)                                     Change of
Control. any Change of Control shall occur; or

 

126

 

(m)                               ERISA. (i) 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 Internal
Revenue 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 fail to satisfy the minimum funding standard; or any Loan Party 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(1), 515, 4062, 4063, 4064, 4069,
4201, 4204 or 4212 of ERISA or Section 436(f), 4971 or 4975 of the
Internal Revenue Code (including the giving of written notice thereof), (ii) there
could result from any event or events set forth in clause (i) of this Section 6.01(m) 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 (iii) such lien, security interest or liability will or would be
reasonably likely to result in a liability of any Loan Party or any ERISA
Affiliate to be pari passu with or senior to the claims of the Administrative
Agent and the Lenders against the Loan Parties hereunder; or

 

(n)                                 Chapter 11
Cases. the occurrence of any of the following:

 

(i)                                     Dismissal or
conversion of Chapter 11 Cases. the Chapter 11 Cases shall
be dismissed or converted to a case under Chapter 7 of the Bankruptcy Code or
the Borrower or any of its Subsidiaries shall file a motion or other pleading
seeking the dismissal of any of the Chapter 11 Cases under Section 1112 of
the Bankruptcy Code or otherwise; a trustee under Chapter 7 or Chapter 11 of
the Bankruptcy Code, a responsible officer or an examiner with enlarged powers
relating to the operation of the business (powers beyond those set forth in Section 1106(a)(3) and
(4) of the Bankruptcy Code) under Section 1106(b) of the
Bankruptcy Code shall be appointed in the Chapter 11 Cases; or

 

(ii)                                  Superpriority
Claim. an application shall be filed by the Borrower or any of its
Subsidiaries for the approval of any other Superpriority Claim in any of the
Chapter 11 Cases that is pari passu with
or senior to the claims of the Administrative Agent and the Lenders against the
Loan Parties hereunder, or there shall arise or be granted any such pari passu or senior Superpriority Claim, in each case
except for (i) the Carve-Out and (ii) the Senior Third Party Liens;
or

 

(iii)                               Relief from
Automatic Stay. the Bankruptcy Court shall enter an order or
orders granting relief from the automatic stay applicable under Section 362
of the Bankruptcy Code to the holder or holders of any security interest to
permit foreclosure (or the granting of a deed in lieu of foreclosure or the
like) on any assets of any of the Loan Parties that have a fair market value in
excess of $1,000,000 individually or $2,500,000 in the aggregate; or

 

(iv)                              Validity of
Orders. the Interim Borrowing Order shall cease to be in full force and
effect and the Final Borrowing Order shall not have been entered 

 

127

 

or deemed to have been
entered prior to such cessation, or the entry of the Final Borrowing Order
shall not have occurred within 45 days after the Petition Date or the Final
Borrowing Order shall cease to be in full force and effect, or the Borrower’s
authority to borrow funds or use cash collateral hereunder or under the Interim
Borrowing Order and Final Borrowing Order, as applicable, shall have otherwise
terminated; or

 

(v)                                 Compliance with
terms of Orders. the Borrower or any of its Subsidiaries shall fail
to comply with any of the terms of the Interim Borrowing Order or the Final
Borrowing Order, as applicable; or

 

(vi)                              Modification of
Orders. an order of the Bankruptcy Court shall be entered reversing,
amending, supplementing, replacing, staying for a period in excess of 10 days,
vacating or otherwise modifying the Interim Borrowing Order or the Final
Borrowing Order, as applicable, without the prior written consent of the
Administrative Agent and the Majority Lenders; or

 

(vii)                           Abstention by
Bankruptcy Court. the Bankruptcy Court shall abstain from hearing
any Chapter 11 Case, or the Borrower or any of its Subsidiaries shall so move
or support any motion brought by any third party seeking such relief; or

 

(viii)                        New Credit. the filing of
any motion to obtain credit from any Person other than the Administrative Agent
and the Lenders, unless in connection therewith all the Obligations shall first
be paid indefeasibly in full in cash (including the cash collateralization of
Letters of Credit in accordance with the terms hereof); or

 

(ix)                                Cram-down Plan. the Borrower
or any of the Subsidiaries shall file any Reorganization Plan that is
inconsistent with the terms of the Restructuring Support Lockup Agreements
and/or which otherwise fails to provide for the payment in full in cash of all
the Obligations upon the effective date thereof (such plan, a “Cram-down
Plan”), the Borrower or any of its Subsidiaries shall fail to timely object
to any Cram-down Plan filed by any other party-in-interest in the Chapter 11
Cases, or the Bankruptcy Court shall approve a disclosure statement in respect
of any Cram-down Plan; or

 

(x)                                   Prepetition
Payments. except as permitted by and subject to the  terms of the Final Borrowing Order, the
Borrower or any of its Subsidiaries shall make any Prepetition Payment other
than Prepetition Payments authorized by the Bankruptcy Court in respect of: (i) accrued
payroll and related expenses and employee benefits as of the Petition Date, (ii) the
satisfaction and termination of the Prepetition Debt, (iii) First Day
Orders and approved critical vendor payments not in excess of $22,000,000 in
the aggregate and (iv) any other payments set forth in the DIP Budget; or

 

128

 

(xi)                                Avoidance
Actions. the Borrower or any of its Subsidiaries shall seek to, or shall
support (in any such case by way of, inter alia, any motion or other pleading
filed with the Bankruptcy Court or any other writing to another
party-in-interest executed by or on behalf of the Borrower or any of its
Subsidiaries) any other Person’s motion relating to any Avoidance Action or to
otherwise, disallow or subordinate in whole or in part the Administrative Agent’s
or any Lender’s claim in respect of the Prepetition Debt or the Obligations or
to otherwise challenge the validity, enforceability, perfection or priority of
the Liens in favor of the Administrative Agent or any Lender or the Prepetition
Administrative Agent or any Prepetition Lender (including, without limitation,
the Liens securing the Prepetition Debt owed to the Prepetition Administrative
Agent, the Prepetition Collateral Agent or such Prepetition Lender); or

 

(xii)                             Support Actions. the Borrower
or any of its Subsidiaries shall file any pleading seeking, or otherwise consenting
to, or shall support or acquiesce in any other Person’s motion as to, any of
the matters set forth in clauses (i) – (xi) above or (xiii) below or fail to
timely object to any such pleading filed by any third party; or

 

(xiii)                          Pleadings. the Bankruptcy
Court shall grant a motion with respect to any pleading set forth in clause
(xii) above;

 

(xiv)                         Last Out Term
Advances. any payment, distribution or other consideration
in respect of the Last Out Term Advances is made prior to the First Out Final
Payment Date (other than payments of interest pursuant to Section 2.20(c),
payments of fees, enhanced yield, costs and expenses pursuant to Section 2.20(d) or
the payment of any gross-up amount by the Borrower to any Last Out Term Lender
pursuant to Section 2.20(e));

 

(xv)                            Termination of
Exclusive Right to File.  the
Borrower’s or any of its Subsidiary’s exclusive right to file a chapter 11 plan
pursuant to Section 1121 of the Bankruptcy Code shall have terminated;

 

(xvi)                         Material
Adverse Effect. any non-monetary judgment or order with respect to
a Post Petition event shall be rendered against the Borrower or any of its
Subsidiaries that does or could reasonably be expected to, either individually
or in the aggregate, have a Material Adverse Effect, and there shall be any
period of 10 consecutive days during which a stay of enforcement of such
judgment or order, by reason of a pending appeal or otherwise, shall not be in
effect; or

 

(o)                                 Material
Impairment.  the
Borrower or any Subsidiary shall file a motion, pleading or proceeding which
could reasonably be expected to result in a material impairment of the rights
or interests of the Lenders or a determination by a court with respect to a
motion, pleading or proceeding brought by another party which results in such a
material impairment,

 

129

 

then, and in any such event, without limiting the
rights and remedies available to any Lender under the Interim Borrowing Order
or (when entered) the Final Borrowing Order or applicable law, the
Administrative Agent may, and at the request of the Majority Lenders shall, by
notice to the Borrower (with a copy to counsel for the Official Creditors’
Committee appointed in the Chapter 11 Cases and to the United States Trustee
for the District of Delaware), 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 any Loan Party, in each case without further order
of or application to the Bankruptcy Court (provided that with respect to
the enforcement of Liens or other remedies with respect to the Collateral under
clause (v) below, the Administrative Agent shall provide the Borrower
(with a copy to counsel for the Official Creditors’ Committee in the Chapter 11
Cases and to the United States Trustee for the District of Delaware) with five (5) Business
Days’ written notice prior to taking the action contemplated thereby; in any
hearing after the giving of the aforementioned notice, the only issue that may
be raised by any party in opposition thereto being whether, in fact, an Event
of Default has occurred and is continuing): (i) declare the obligation of
each Lender to make Advances (other than Letter of Credit Advances by an
Issuing Bank pursuant to Section 2.03(e)(i)), the obligations of the
Swingline Bank to make Swingline Advances) and of any Issuing Bank to issue
Letters of Credit to be terminated, whereupon the same shall forthwith
terminate, (ii) declare the Notes, all interest thereon and all other amounts
payable under this Agreement and the other Loan Documents to be forthwith due
and payable, whereupon the Notes, all such interest and all such amounts shall
become and be forthwith due and payable, without presentment, demand, protest
or further notice of any kind, all of which are hereby expressly waived by the
Borrower, (iii) by notice to each party required under the terms of any
agreement in support of which a standby Letter of Credit is issued, request
that all Obligations under such agreement be declared to be due and payable (iv) set
off amounts in the Cash Collateral Account or any other accounts maintained
with the Administrative Agent and apply such amounts to the obligations of the
Borrower and the Subsidiary Guarantors hereunder and in the other Loan
Documents and (v) exercise any and all remedies under the Loan Documents
and under applicable law available to the Administrative Agent and the Lenders.

 

SECTION 6.02.  Application of Funds.  On or after the exercise of any of the
remedies provided in the last paragraph of Section 6.01, (x) all
moneys collected by the Administrative Agent (or, to the extent any Collateral
Document executed by a Loan Party requires proceeds of collateral thereunder to
be applied in accordance with the provisions of this Agreement, the pledgee,
assignee, mortgagee or other corresponding party under such Collateral
Document) upon any sale or other disposition of the Collateral and (y) all
other moneys received by the Administrative Agent hereunder (or, to the extent
any Collateral Document executed by a Loan Party requires proceeds of
collateral thereunder to be applied in accordance with the provisions of this
Agreement, the pledgee, assignee, mortgagee or other corresponding party under
such Collateral Document) upon any exercise of remedies hereunder, in each case
on account of the Obligations or the Cash Management Obligations, shall be
applied by the Administrative Agent in the following order:

 

(a)                                  First, to payment of
any and all sums advanced by the Administrative Agent in order to preserve the
Collateral or preserve its security interest in the Collateral;

 

130

 

(b)           Second, to the extent
proceeds remain after the application pursuant to preceding clause, in the
event of any proceeding for the collection or enforcement of any Obligations or
Cash Management Obligations, after an Event of Default shall have occurred and
be continuing, the expenses of retaking, holding, preparing for sale or lease,
selling or otherwise disposing of or realizing on the Collateral, or of any
exercise by the Administrative Agent of its rights hereunder, together with
reasonable attorneys’ fees and court costs;

 

(c)           Third, to the extent
proceeds remain after the application pursuant to preceding clause, to payment
of that portion of the Obligations and Cash Management Obligations that are
Primary Obligations constituting fees, indemnities, expenses and other amounts
(other than principal and interest, but including fees and expenses of counsel
to the Administrative Agent and the Lender Parties and the Cash Management
Creditors) payable to the Administrative Agent and the Lenders and the Cash
Management Creditors ratably among them in proportion to the amounts described
in this clause Third payable to them;

 

(d)           Fourth, to the extent
proceeds remain after the application pursuant to preceding clause, to payment
of that portion of the Obligations constituting accrued and unpaid interest on
the Advances (other than Last Out Term Advances) and Cash Management
Obligations constituting accrued and unpaid interest, in each case that are
Primary Obligations, ratably among the Secured Parties in proportion to the
respective amounts described in this clause Fourth payable to them;

 

(e)           Fifth, to the extent
proceeds remain after the application pursuant to preceding clause, to payment
of that portion of the Obligations constituting unpaid principal of the
Advances (other than Last Out Term Advances), that portion of the Cash
Management Obligations constituting unpaid principal and to cash collateralize
the aggregate Available LC Amount of all outstanding Letters of Credit in
accordance with the requirements of Section 2.03(g), in each case that are
Primary Obligations, ratably among the Secured Parties in proportion to the
respective amounts described in this clause Fifth payable to them;

 

(f)            Sixth, to the extent
proceeds remain after the application pursuant to preceding clause, to the
payment of all other Obligations and Cash Management Obligations (other than
Unmatured Surviving Obligations) of the Loan Parties owing under or in respect
of the Loan Documents and/or the Secured Cash Management Agreements that are
due and payable to the Administrative Agent and the other Secured Parties on
such date, in each case that are Primary Obligations, ratably based upon the
respective aggregate amounts of all such Obligations and Cash Management
Obligations (other than Unmatured Surviving Obligations) owing to the
Administrative Agent and the other Secured Parties on such date;

 

(g)           Seventh, to the extent
proceeds remain after the application pursuant to preceding clause, to payment
of that portion of the Cash Management Obligations that are Secondary
Obligations constituting fees, indemnities, expenses and other amounts (other
than principal and interest, but including fees and expenses of counsel to the

 

131

 

respective Cash Management Creditors) payable to the
respective Cash Management Creditors ratably among them in proportion to the
amounts described in this clause Seventh payable to them;

 

(h)           Eighth, to the extent
proceeds remain after the application pursuant to preceding clause, to payment
of that portion of the Obligations constituting accrued and unpaid interest on
the Cash Management Obligations that are Secondary Obligations, ratably among
the respective Cash Management Creditors in proportion to the respective
amounts described in this clause Eighth payable to them;

 

(i)            Ninth, to the extent
proceeds remain after the application pursuant to preceding clause, to payment
of that portion of the Cash Management Obligations constituting unpaid
principal, that are Secondary Obligations, ratably among the respective Cash
Management Creditors in proportion to the respective amounts described in this
clause Ninth payable to them;

 

(j)            Tenth, to the extent
proceeds remain after the application pursuant to preceding clause, to the
payment of all other Cash Management Obligations (other than Unmatured
Surviving Obligations) of the Loan Parties owing under or in respect of the
Secured Cash Management Agreements due and payable to the respective Cash
Management Creditors on such date, that are Secondary Obligations, ratably
based upon the respective aggregate amounts of all such Cash Management
Obligations (other than Unmatured Surviving Obligations) owing to the
respective Cash Management Creditors on such date;

 

(k)           Eleventh, to the extent
proceeds remain after the application pursuant to preceding clause, to payment
of that portion of the Obligations that are Last Out Obligations constituting
fees, indemnities, expenses and other amounts (other than principal and interest)
payable to the Last Out Term Lenders ratably among them in proportion to the
amounts described in this clause Eleventh payable to them;

 

(l)            Twelfth, to the extent
proceeds remain after the application pursuant to preceding clause, to payment
of that portion of the Obligations constituting accrued and unpaid interest on
Last Out Term Advances, ratably among the Last Out Term Lenders in proportion
to the respective amounts described in this clause Twelfth payable to
them;

 

(m)          Thirteenth, to the extent
proceeds remain after the application pursuant to preceding clause, to payment
of that portion of the Obligations constituting unpaid principal on Last Out
Term Advances, ratably among the Last Out Term Lenders in proportion to the
respective amounts described in this clause Thirteenth payable to them;

 

(n)           Fourteenth, to the extent
proceeds remain after the application pursuant to preceding clause, to the
payment of all other Last Out Obligations (other than Unmatured Surviving
Obligations) of the Last Out Term Lenders owing under or in respect of the Loan
Documents that are due and payable to the Last Out Term Lenders on such date
ratably based upon the respective aggregate amounts of all such Obligations
(other than Unmatured Surviving Obligations) owing to the Last Out Term Lenders
on such date;

 

132

 

(o)           Last, to the extent
proceeds remain after the application pursuant to preceding clause, the
balance, if any, after all of the Obligations and Cash Management Obligations
(other than Unmatured Surviving Obligations) have been indefeasibly paid in
full, no Letters of Credit shall be outstanding that have not been cash
collateralized in a manner satisfactory to the Administrative Agent and each
Issuing Bank that issued them and the Commitments shall have been terminated,
to the Borrower or as otherwise required by law.

 

For
the purposes of applying payments received in accordance with this Section 6.02,
the Administrative Agent shall be entitled to rely upon the Cash Management
Creditors for a determination (which each Cash Management Creditor agrees (or
shall agree) to provide upon request of the Administrative Agent) of the
outstanding Cash Management Obligations of the Loan Parties owed to the Cash
Management Creditors.  Unless it has
received written notice from a Cash Management Creditor to the contrary, the
Administrative Agent, in acting hereunder, shall be entitled to assume that no
Secured Cash Management Agreements are in existence.

 

Subject
to the other limitations (if any) set forth herein and in the other Loan
Documents and Secured Cash Management Agreements, it is understood that the
Loan Parties shall remain liable (as and to the extent set forth in the Loan
Documents and Secured Cash Management Agreements) to the extent of any
deficiency between the amount of the proceeds of the Collateral and the
aggregate amount of the Obligations and Cash Management Obligations of the Loan
Parties.

 

ARTICLE
VII

 

THE
ADMINISTRATIVE AGENT

 

SECTION 7.01.Authorization
and Action.  Each Lender Party (in
its capacities as a Lender, the Swingline Bank (if applicable) and an Issuing
Bank (if applicable)) hereby irrevocably appoints and authorizes the
Administrative Agent to take such action as agent on its behalf and to exercise
such powers and discretion under this Agreement and the other Loan Documents as
are delegated to the Administrative Agent by the terms hereof and thereof,
together with such powers and discretion as are reasonably incidental thereto.  The Administrative Agent shall not have any
duties or responsibilities except those expressly set forth in this Agreement
and in the other Loan Documents, and the Administrative Agent may perform any
of its respective duties hereunder by or through its officers, directors,
agents, employees or affiliates.  The
duties of the Administrative Agent shall be mechanical and administrative in
nature; the Administrative Agent shall not have by reason of this Agreement or
any other Loan Document a fiduciary relationship in respect of any Lender or
the holder of any Note; and nothing in this Agreement or in any other Loan
Document, expressed or implied, is intended to or shall be so construed as to
impose upon the Administrative Agent any obligations in respect of this
Agreement or any other Loan Document except as expressly set forth herein or
therein. As to any matters not expressly provided for by the Loan Documents
(including, without limitation, enforcement or collection of the Notes), the
Administrative Agent shall not be required to exercise any discretion or take
any action, but shall be required to act or to refrain from acting (and shall
not incur any liability to any Lender Party and shall be fully protected in

 

133

 

so acting or refraining
from acting) upon the instructions of the Majority Lenders, and such
instructions shall be binding upon all Lender Parties and all holders of Notes;
provided, however, that the Administrative Agent shall not be
required to take any action that exposes the Administrative Agent to personal
liability or that is contrary to this Agreement or applicable law.  Without limiting the foregoing, neither any
Lender nor the holder of any Note shall have any right of action whatsoever
against the Administrative Agent as a result of the Administrative Agent acting
or refraining from acting hereunder or under any other Loan Document in
accordance with the instructions of the Majority Lenders (or, if so specified
by this Agreement, any applicable greater percentage of Lenders).  The Administrative Agent agrees to give to
each Lender Party prompt notice of each notice given to it by the Borrower
pursuant to the terms of this Agreement.

 

SECTION 7.02.Administrative
Agent’s Reliance, Etc.  Neither the
Administrative Agent nor any of its directors, officers, agents or employees
shall be liable for any action taken or omitted to be taken by it or them under
or in connection with the Loan Documents, except for its or their own gross
negligence or willful misconduct (as determined by a court of competent
jurisdiction in a final and non-appealable decision).  Without limitation of the generality of the
foregoing, the Administrative Agent:  (a) may
deem and treat the payee of any Note as the holder thereof until the Administrative
Agent receives and accepts an Assignment and Acceptance entered into by the
Lender that is the payee of such Note, as assignor, and any permitted assignee
or transferee, as assignee, as provided in Section 8.07; (b) with
respect to any request, authority or consent of any Person who, at the time of
making such request or giving such authority or consent, is the holder of any
Note, may consider as conclusive and binding any such request, authority or
consent of such Person, as applicable, on any subsequent holder, transferee,
assignee or endorsee, as the case may be, of such Note or of any Note or Notes
issued in exchange therefore; (c) may consult with legal counsel
(including counsel for any Loan Party), independent public accountants and
other experts selected by it and shall not be liable for any action taken or
omitted to be taken in good faith by it in accordance with the advice of such
counsel, accountants or experts; (d) makes no warranty or representation
to any Lender Party and shall not be responsible to any Lender Party for any
recitals, statements, information, warranties or representations (whether
written or oral) made in or in connection with the Loan Documents; (e) shall
not have any duty to ascertain or to inquire as to (x) the performance or
observance of any of the terms, provisions, covenants or conditions of this
Agreement or any Loan Document on the part of any Loan Party, (y) the
financial condition of any Loan Party or (z) the existence or possible
existence of any Default; (f) shall not have any duty to inspect the
property (including the books and records) of any Loan Party; (g) shall
not be responsible to any Lender Party for the due execution, legality,
validity, enforceability, genuineness, collectability, sufficiency or value of
any Loan Document, the financial condition of the Borrower or any of its
Subsidiaries or the perfection or priority of any lien or security interest
created or purported to be created under or in connection with, any Loan
Document or any other instrument or document furnished pursuant thereto; and (h) shall
incur no liability under or in respect of any Loan Document by acting upon any
notice, statement, consent, order, certificate or other instrument or writing
(which may be by telegram, telecopy, telex, cablegram or electronic mail) or
telephone message believed by it to be genuine and signed, sent or made by the
proper party or parties.

 

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SECTION 7.03.DBTCA
and Affiliates.  With respect to its
Commitments, the Advances made by it and the Notes issued to it, DBTCA shall
have the same rights and powers under the Loan Documents as any other Lender
Party and may exercise the same as though it were not the Administrative Agent;
and the term “Lender Party” or “Lender Parties” or any similar terms shall,
unless otherwise expressly indicated, include DBTCA in its individual
capacity.  DBTCA and its Affiliates may
accept deposits from, lend money to, act as trustee under indentures of, accept
investment banking engagements from and generally engage in any kind of
banking, investment banking, trust or other business with, or provide debt
financing, equity capital or other services (including financial advisory
services) to, any Loan Party, any of its Subsidiaries and any Person who may do
business with or own securities of any Loan Party or any such Subsidiary, all
as if DBTCA were not the Administrative Agent and without any duty to account
therefor to the Lender Parties.  DBTCA
may accept fees and other consideration from any Loan Party or any Affiliate of
any Loan Party for services in connection with this Agreement and otherwise
without having to account for the same to the Lender Parties.

 

SECTION 7.04.Lender
Party Credit Decision.  Each Lender
Party acknowledges that it has, independently and without reliance upon the
Administrative Agent or any other Lender Party and based on the financial
statements referred to in Section 5.01 and such other documents and
information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. 
Each Lender Party also acknowledges that it will, independently and
without reliance upon the Administrative Agent or any other Lender Party and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under this Agreement.  Except as
expressly provided in this Agreement, the Administrative Agent shall not have
any duty or responsibility, either initially or on a continuing basis, to
provide any Lender Party or the holder of any Note with any credit or other
information with respect thereto, whether coming into its possession before the
making of the Loans or at any time or times thereafter.

 

SECTION 7.05.Indemnification.  (a) Each Lender Party severally agrees
to indemnify the Administrative Agent (to the extent not promptly reimbursed by
the Borrower) from and against such Lender Party’s ratable share (determined as
provided below) of any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind or nature whatsoever that may be imposed on, incurred by, or asserted
against the Administrative Agent (or any affiliate thereof) in performing its
duties hereunder or under any other Loan Document or in any way relating to or
arising out of the Loan Documents or any action taken or omitted by the
Administrative Agent under the Loan Documents; provided, however,
that no Lender Party shall be liable for 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 (as determined by a court of competent
jurisdiction in a final and non-appealable decision).  Without limitation of the foregoing, each
Lender Party agrees to reimburse the Administrative Agent promptly upon demand
for its ratable share of any costs and expenses (including, without limitation,
reasonable fees and expenses of counsel) payable by the Borrower under Section 8.04,
to the extent that the Administrative Agent is not promptly reimbursed for such
costs and expenses by the Borrower.  For
purposes of this Section 7.05(a), the Lender Parties’ respective ratable
shares of any amount shall be determined, at any time, according to the sum of (i) the
aggregate principal amount of the Advances outstanding at such time and owing
to the respective

 

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Lender Parties, (ii) their
respective Pro Rata Shares of the aggregate principal amount of all Swingline
Advances outstanding at such time made by the Swingline Bank, (iii) their
respective Pro Rata Shares of the aggregate Available LC Amount of all Letters
of Credit outstanding at such time and (iv) their respective Unused
Revolving Credit Commitments at such time; provided that the aggregate
principal amount of Swingline Advances owing to the Swingline Bank and the
aggregate principal amount of Letter of Credit Advances owing to each Issuing
Bank shall be considered to be owed to the Lenders ratably in accordance with
their respective Revolving Credit Commitments. 
In the event that any Defaulted Advance shall be owing by any Defaulting
Lender at any time, such Lender Party’s Commitment shall be considered to be
unused for purposes of this Section 7.05(a) to the extent of the
amount of such Defaulted Advance.  The
failure of any Lender Party to reimburse the Administrative Agent promptly upon
demand for its ratable share of any amount required to be paid by the Lender
Party to the Administrative Agent as provided herein shall not relieve any
other Lender Party of its obligation hereunder to reimburse the Administrative
Agent for its ratable share of such amount, but no Lender Party shall be
responsible for the failure of any other Lender Party to reimburse the
Administrative Agent for such other Lender Party’s ratable share of such
amount.  Without prejudice to the
survival of any other agreement of any Lender Party hereunder, the agreement
and obligations of each Lender Party contained in this Section 7.05(a) shall
survive the payment in full of principal, interest and all other amounts
payable hereunder and under the other Loan Documents.

 

(b)           Each Lender severally agrees
to indemnify the Swingline Bank and each Issuing Bank (to the extent not
promptly reimbursed by the Borrower) from and against such Lender Party’s
ratable share (determined as provided below) of any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever that may be imposed
on, incurred by, or asserted against the Swingline Bank or such Issuing Bank in
any way relating to or arising out of the Loan Documents or any action taken or
omitted by the Swingline Bank or such Issuing Bank under the Loan Documents; provided,
however, that no Lender Party shall be liable for any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements resulting from the Swingline Bank’s or
such Issuing Bank’s gross negligence or willful misconduct (as determined by a
court of competent jurisdiction in a final and non-appealable decision).  Without limitation of the foregoing, each
such Lender Party agrees to reimburse the Swingline Bank and each Issuing Bank
promptly upon demand for its ratable share of any costs and expenses
(including, without limitation, reasonable fees and expenses of counsel)
payable by the Borrower under Section 8.04, to the extent that the
Swingline Bank or such Issuing Bank is not promptly reimbursed for such costs
and expenses by the Borrower.  For
purposes of this Section 7.05(b), the Lender Parties’ respective ratable
shares of any amount shall be determined, at any time, according to the sum of (i) the
aggregate principal amount of the Advances outstanding at such time and owing
to the respective Lender Parties, (ii) their respective Pro Rata Shares of
the aggregate principal amount of all Swingline Advances outstanding at such
time made by the Swingline Bank, (iii) their respective Pro Rata Shares of
the aggregate Available LC Amount of all Letters of Credit outstanding at such
time issued by such Issuing Bank and (iv) their respective Unused
Revolving Credit Commitments at such time; provided that the aggregate
principal amount of Swingline Advances owing to the Swingline Bank and the
aggregate principal amount of Letter of Credit Advances owing to such Issuing
Bank shall be considered to be owed to the Lenders ratably in accordance with
their

 

136

 

respective Revolving Credit
Commitments.  In the event that any
Defaulted Advance shall be owing by any Defaulting Lender at any time, such
Lender Party’s Commitment shall be considered to be unused for purposes of this
Section 7.05(b) to the extent of the amount of such Defaulted
Advance.  The failure of any Lender Party
to reimburse the Swingline Bank or any Issuing Bank promptly upon demand for
its ratable share of any amount required to be paid by the Lender Parties to
the Swingline Bank or such Issuing Bank as provided herein shall not relieve
any other Lender Party of its obligation hereunder to reimburse the Swingline
Bank or such Issuing Bank for its ratable share of such amount, but no Lender
Party shall be responsible for the failure of any other Lender Party to
reimburse the Swingline Bank or such Issuing Bank for such other Lender Party’s
ratable share of such amount.  Without
prejudice to the survival of any other agreement of any Lender Party hereunder,
the agreement and obligations of each Lender Party contained in this Section 7.05(b) shall
survive the payment in full of principal, interest and all other amounts
payable hereunder and under the other Loan Documents.

 

SECTION 7.06.Successor
Administrative Agent.  The
Administrative Agent may resign at any time by giving written notice thereof to
the Lender Parties and the Borrower.  Any
such resignation by the Administrative Agent shall also constitute its
resignation as the Swingline Bank and as an Issuing Bank, in which case the
resigning Administrative Agent (x) shall not be required to make any
additional Swingline Advances or issue any further Letters of Credit hereunder
and (y) shall maintain all of its rights as Swingline Bank, as the case
may be, with respect to any Swingline Advances made by it, or any Letters of
Credit issued by it, prior to the date of such resignation.  Upon any such resignation, the Majority
Lenders shall, with the consent of the Borrower (such consent not to be
unreasonably withheld or delayed and such consent not to be required if an
Event of Default then exists) have the right to appoint a successor
Administrative Agent.  Such successor
Administrative Agent shall serve until such time, if any, as the Majority
Lenders appoint a new successor Administrative Agent as provided above.  If no successor Administrative Agent has been
appointed by the 20th Business Day after the date such notice of resignation
was given by the retiring Administrative Agent, such retiring Administrative
Agent’s resignation shall become effective and the Majority Lenders shall
thereafter perform all the duties of the Administrative Agent hereunder and/or
under any other Loan Document until such time, if any, as the Majority Lenders
appoint a successor Administrative Agent as provided above.  If no successor Administrative Agent shall
have been so appointed by the Majority Lenders and consented to by the Borrower,
and shall have accepted such appointment, within 15 Business Days after the
retiring Administrative Agent’s giving of notice of resignation, then the
retiring Administrative Agent may, on behalf of the Lender Parties and with the
consent of the Borrower (such consent not to be unreasonably withheld or
delayed and such consent not to be required if an Event of Default then exists)
appoint a successor Administrative Agent, which shall be a commercial bank or
trust company organized under the laws of the United States or of any State
thereof and having a combined capital and surplus of at least
$250,000,000.  Upon the acceptance of any
appointment as the Administrative Agent hereunder by a successor Administrative
Agent and upon the execution and filing or recording of such financing
statements, or amendments thereto, and such other instruments or notices, as
may be necessary or desirable, or as the Majority Lenders may request, in order
to continue the perfection of the Liens granted or purported to be granted by
the Collateral Documents, such successor Administrative Agent shall succeed to
and become vested with all the rights, powers, discretion, privileges and
duties of the retiring Administrative Agent, and the retiring Administrative
Agent shall be discharged from its duties and obligations under the Loan

 

137

 

Documents.
Notwithstanding the foregoing, the retiring Administrative Agent shall be
discharged from its duties and obligations hereunder and under the other Loan
Documents upon the effectiveness of its resignation pursuant to the fourth
sentence of this Section 7.06. 
After any retiring Administrative Agent’s resignation hereunder as
Administrative Agent, such retiring Administrative Agent shall remain
indemnified to the extent provided in this Agreement and the other Loan
Documents, and the provisions of this Article VII and Section 8.04
(and the analogous provisions of the other Loan Documents) shall inure to its
benefit as to any actions taken or omitted to be taken by it while it was the
Administrative Agent under this Agreement.

 

SECTION 7.07.Lead
Arranger; Syndication Agent.  The
Lead Arranger and the Syndication Agent shall have no duties or obligations
under this Agreement or the other Loan Documents in their respective capacities
as Lead Arranger and Syndication Agent, as the case may be.

 

SECTION 7.08.Collateral
Matters.  (a)  Each Lender
authorizes and directs the Administrative Agent to enter into the Collateral
Documents for the benefit of the Lenders and the other Secured Parties.  Each Lender hereby agrees, and each holder of
any Note by the acceptance thereof will be deemed to agree, that, except as
otherwise set forth herein, any action taken by the Majority Lenders in
accordance with the provisions of this Agreement or the Collateral Documents,
and the exercise by the Majority Lenders of the powers set forth herein or
therein, together with such other powers as are reasonably incidental thereto,
shall be authorized and binding upon all of the Lenders.  The Administrative Agent is hereby authorized
on behalf of all of the Lenders, without the necessity of any notice to or
further consent from any Lender, from time to time prior to an Event of Default,
to take any action with respect to any Collateral or Collateral Documents which
may be necessary to perfect and maintain perfected the security interest in and
liens upon the Collateral granted pursuant to the Collateral Documents.

 

(b)           The Administrative Agent
shall have no obligation whatsoever to the Lenders or to any other Person to
assure that the Collateral exists or is owned by any Loan Party or is cared
for, protected or insured or that the Liens granted to the Administrative Agent
herein or pursuant hereto have been properly or sufficiently or lawfully
created, perfected, protected or enforced or are entitled to any particular
priority, or to exercise or to continue exercising at all or in any manner or
under any duty of care, disclosure or fidelity any of the rights, authorities and
powers granted or available to the Administrative Agent in this Section 7.08
or in any of the Collateral Documents, it being understood and agreed that in
respect of the Collateral, or any act, omission or event related thereto, the
Administrative Agent may act in any manner it may deem appropriate, in its sole
discretion, given the Administrative Agent’s own interest in the Collateral as
one of the Lenders and that the Administrative Agent shall have no duty or
liability whatsoever to the Lenders, except for its gross negligence or willful
misconduct (as determined by a court of competent jurisdiction in a final and
non-appealable decision).

 

SECTION 7.09.Delivery
of Information.  The Administrative
Agent shall not be required to deliver to any Lender originals or copies of any
documents, instruments, notices, communications or other information received
by the Administrative Agent from any Loan Party, any Subsidiary of any Loan
Party, the Majority Lenders, any Lender or any other Person under or in connection
with this Agreement or any other Loan Document except (i) as specifically
provided in this Agreement or any other Loan Document and (ii) as
specifically

 

138

 

requested from time to
time in writing by any Lender with respect to a specific document, instrument,
notice or other written communication received by and in the possession of the
Administrative Agent at the time of receipt of such request and then only in
accordance with such specific request.

 

ARTICLE VIII

 

MISCELLANEOUS

 

SECTION 8.01.Amendments,
Etc.  (a)  General.  No amendment or waiver of any provision of
this Agreement or the Notes or any other Loan Document, nor consent to any
departure by the Borrower therefrom, shall in any event be effective unless the
same shall be in writing and signed (or, in the case of the Collateral
Documents, consented to) by (i) the Majority Lenders and (ii) any
other Lender, the consent of which is required pursuant to any of Section 8.01(b) through
(h), and then such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given.

 

(b)           All First Out Lenders.  No amendment, waiver or consent shall, unless
in writing and signed by all of the Revolving Credit Lenders (other than any
such Lender that is, at such time, a Defaulting Lender), do any of the
following at any time:

 

(i)            amend, waive or modify any
provision of Section 2.20,

 

(ii)           waive any of the conditions
specified in Section 3.01 or, in the case of any Borrowing after the Final
Borrowing Order Entry Date, Section 3.02 or, in the case of any Borrowing,
Section 3.03,

 

(iii)          change the number of
Revolving Credit Lenders or the percentage of (x) the Revolving Credit
Commitments, (y) the aggregate unpaid principal amount of the Revolving
Credit Advances or (z) the aggregate Available LC Amount of outstanding
Letters of Credit that, in each case, shall be required for the Revolving
Credit Lenders or any of them to take any action hereunder,

 

(iv)          amend the definition of
“Supermajority Revolving Credit Lenders”,

 

(v)           amend, waive or modify any
provision this Section 8.01,

 

(vi)          increase the Commitment of
any Revolving Credit Lender or subject any Revolving Credit Lender to any
additional obligations,

 

(vii)         postpone any date fixed for
any payment of principal or interest on the Revolving Credit Notes or any
reimbursement obligation in respect of any Swingline Advance or Letter of
Credit or Letter of Credit Advance or any fees or other amounts payable
hereunder or the final maturity date of the Revolving Credit Facility (except
in accordance with the express terms of this Agreement as of the original date
hereof in accordance with Section 2.19),

 

139

 

(viii)        reduce the principal of, or
interest (other than a waiver of increased interest following Default pursuant
to Section 2.07(b)) on, the Revolving Credit Notes or any reimbursement
obligation in respect of any Swingline Advance or Letter of Credit or Letter of
Credit Advance or any fees or other amounts payable hereunder,

 

(ix)           increase the advance rate
used in the calculation of Inventory Formula Amount or Accounts Formula Amount,

 

(x)            (other than pursuant to any
transaction permitted under Section 5.02(d) or except as expressly
provided for in any Loan Document), release all or substantially all of the
Collateral in any transaction or series of related transactions,

 

(xi)           (other than pursuant to any
transaction permitted under Section 5.02(c) or Section 5.02(d) or
except as expressly provided for in any Loan Document), release all or
substantially all of the Loan Parties (other than the Borrower) from their
obligations as guarantor under the Guarantee and Collateral Agreement in any
transaction or series of related transactions, or

 

(xii)          otherwise limit the
Borrower’s liability with respect to the Obligations owing to the
Administrative Agent and the First Out Lender Parties under any of the Loan
Documents.

 

(c)           Affected First Out Lenders.  No amendment, waiver or consent shall, unless
in writing and signed by each affected Revolving Credit Lender (other than any
such Lender that is, at such time, a Defaulting Lender) (i) reduce,
postpone or change the order of application of, or right to decline to receive,
any repayment or prepayment of principal required to be paid pursuant to
Sections 2.04 or 2.06, or (ii) amend, waive or modify Section 6.02 if
such amendment, waiver or modification would adversely affect such Revolving
Credit Lender.

 

(d)           All Last Out Term Lenders.  No amendment, waiver or other modification
shall, unless in writing and signed by each Last Out Term Lender (other than
any such Lender that is, at such time, a Defaulting Lender), do any of the
following at any time:

 

(i)            amend, waive or modify any
provision of Section 2.20,

 

(ii)           waive any of the conditions
specified in Sections 3.01(a), (b), (c), (f), (g), (h), (i) (other than
paragraphs (i)(vii), (i)(viii), (i)(ix), (i)(x), (i)(xii) or (i)(xiii)) or (k),
or Section 3.03(a),

 

(iii)          amend, waive or modify any
provision of this Section 8.01(d), or Section 8.01(e) or Section 8.01(f),

 

(iv)          increase the Commitment of
any Last Out Term Lender or subject any Last Out Term Lender to any additional
obligations,

 

(v)           postpone any date fixed for
any payment of principal or interest on the Last Out Term Notes or any fees or
other amounts payable hereunder or the final maturity date of the Last Out Term
Facility (except in accordance with the express terms

 

140

 

of this Agreement as of the original date hereof in
accordance with Section 2.19),

 

(vi)          reduce the principal of, or
interest (other than a waiver of increased interest following Default pursuant
to Section 2.07(b)) on, the Last Out Term Notes or any fees or other amounts
payable hereunder, or

 

(vii)         amend, waive or modify any
provision of this Agreement or any other Loan Document that would limit or
eliminate any consent or approval right granted to the Last Out Term Lenders or
the Last Out Requisite Lenders.

 

(e)           Affected Last Out Term
Lenders.  No amendment, waiver or other
modification shall, unless in writing and signed by the Last Out Requisite
Lenders and each affected Last Out Term Lender (other than any such Lender that
is, at such time, a Defaulting Lender), amend, waive or modify Section 6.02
if such amendment, waiver or modification would adversely affect such Last Out
Term Lender.

 

(f)            Last Out Requisite Lenders.  No amendment, waiver or consent shall, unless
in writing and signed by the Last Out Requisite Lenders:

 

(i)            amend the definition of
“First Out Final Payment Date”,

 

(ii)           waive any of the conditions
specified in Sections 3.01(d), (e) (i)(viii), (i)(ix), (j), (l), (m), (n),
(o), (p) or (q), or

 

(iii)          increase the Commitment of
any First Out Lender or otherwise increase the amount of First Out Obligations
having priority ahead of the Last Out Obligations pursuant to Section 2.20
and the other provisions of this Agreement and the Collateral Documents.

 

(g)           Supermajority Revolving
Credit Lenders.  No amendment,
waiver or consent shall, unless in writing and signed by the Supermajority
Revolving Credit Lenders,

 

(i)            amend the definition of
“Dominion Period”,

 

(ii)           amend or expand any of the following definitions,
in each case the effect of which would be to increase the amounts available for
borrowing hereunder: “Availability Reserves”, “Borrowing Base”, “Eligible Accounts”, “Eligible
Inventory” and “Specified Reserves” (including, in each case, the defined terms used
therein), provided that the Administrative
Agent can in accordance with the terms hereof introduce new criteria the effect of which would be to reduce the
amounts available for borrowing hereunder and, following such introduction, may modify or
eliminate such new criteria, in each case with respect to “Availability
Reserves”, “Eligible Accounts”, “Eligible Inventory” and “Specified Reserves”
and any such change will not be deemed to require a Supermajority Revolving
Credit Lender consent, provided  further that notwithstanding the
foregoing proviso, in the case of the establishment, modification or
elimination of Specified Reserves, the Administrative Agent shall at all times
act in accordance with any direction given by a member of the Instructing Group
in accordance with the definition of “Specified Reserves”.

 

141

 

(h)                                 Swingline Bank,
Issuing Bank and Administrative Agent.  No amendment, waiver or consent shall, unless
in writing and signed by the Swingline Bank and each affected Issuing Bank, as
the case may be, in addition to the Lenders required above to take such action,
affect the rights or obligations of the Swingline Bank or such Issuing Bank, as
the case may be, under this Agreement; and no amendment, waiver or consent
shall, unless in writing and signed by the Administrative Agent in addition to
the Lenders required above to take such action, affect the rights or duties of
the Administrative Agent under this Agreement.

 

SECTION 8.02.Notices,
Etc.  All notices and other
communications provided for hereunder shall be in writing (including telecopier
communication) and mailed or transmitted by telecopier or electronic mail or
delivered, if to the Borrower, to its address at P.O. Box 15600, 7140
Office Circle, Evansville, IN 47716, Attn: 
Office of General Counsel; if to any Initial Lender or the Initial
Issuing Bank, to its Lending Office specified opposite its name on Schedule I
hereto; if to any other Lender Party, to its Lending Office specified in the
Assignment and Acceptance pursuant to which it became a Lender Party; and if to
the Administrative Agent, to its address at 60 Wall Street, at Deutsche Bank
Trust Company Americas, 60 Wall Street, MS NYC60-0208, New York, New York
10005, Attention: Omayra Laucella; or, as to the Borrower or the Administrative
Agent, to such other address as shall be designated by such party in a written
notice to the other parties and, as to each other party, at such other address
as shall be designated by such party in a written notice to the Borrower and
the Administrative Agent pursuant to this Section 8.02; provided that
materials required to be delivered pursuant to Section 5.03(a), (b), (c),
(g), (l) and (m) shall be delivered to the Administrative Agent in an
electronic medium in a format reasonably acceptable to the Administrative
Agent.  All such notices and
communications shall, when mailed or transmitted by telecopier or electronic
mail, be effective when deposited in the mail, transmitted by telecopier or
confirmed by electronic mail, respectively, except that notices and
communications to the Administrative Agent pursuant to Sections 2.02, 2.03,
2.05, 2.06(a) and 2.09(a) and with respect to selected Interest
Periods in respect of Eurodollar Rate Advances shall not be effective until
received by the Administrative Agent. 
Delivery by telecopier or by electronic mail in PDF format of an
executed counterpart of any amendment or waiver of any provision of this
Agreement or the Notes or of any Exhibit hereto to be executed and
delivered hereunder shall be effective as delivery of a manually executed
counterpart thereof.

 

SECTION 8.03.No
Waiver; Remedies.  No failure on the
part of any Lender Party or the Administrative Agent to exercise, and no delay
in exercising, any right hereunder or under any Note shall operate as a waiver
thereof; nor shall any single or partial exercise of any such right preclude
any other or further exercise thereof or the exercise of any other right.  The remedies herein provided are cumulative
and not exclusive of any remedies provided by law.

 

SECTION 8.04.Costs,
Expenses.  (a)  The Borrower
agrees to pay on demand (i) all costs and expenses of the Administrative
Agent in connection with the preparation, execution, delivery, administration,
modification and amendment of the Loan Documents (including, without
limitation, (A) all due diligence, collateral review or examination,
syndication, transportation, computer, duplication, appraisal, audit,
insurance, consultant, search, filing and recording fees and expenses and (B) the
reasonable fees and expenses of White & Case LLP, special New York
counsel, Stikeman Elliott LLP, Canadian

 

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counsel and Fox
Rothschild, Delaware counsel for the Administrative Agent with respect thereto,
with respect to advising the Administrative Agent as to its rights and responsibilities,
or the perfection, protection or preservation of rights or interests, under the
Loan Documents, with respect to negotiations with any Loan Party or with other
creditors of any Loan Party or any of its Subsidiaries arising out of any
Default or any events or circumstances that may give rise to a Default and with
respect to presenting claims in or otherwise participating in or monitoring any
bankruptcy, insolvency or other similar proceeding involving creditors’ rights
generally and any proceeding ancillary thereto), (ii) all costs and
expenses of the Administrative Agent and the Lender Parties in connection with
the enforcement of the Loan Documents, whether in any action, suit or
litigation, any bankruptcy, insolvency or other similar proceeding affecting
creditors’ rights generally (including, without limitation, the reasonable fees
and expenses of counsel for the Administrative Agent and each Lender Party with
respect thereto), (iii) all costs and expenses of the Swingline Bank and
each Issuing Bank in connection with the Back-Stop Arrangements entered into by
such Persons and (iv) the reasonable and documented fees and expenses of
Finn Dixon & Herling LLP, counsel to General Electric Capital Corporation,
Nixon Peabody LLP, counsel to Eaton Vance Management, and Milbank, Tweed,
Hadley & McCloy LLP, special New York counsel to the Last Out Term
Lenders.

 

(b)                                 The Borrower agrees to indemnify and hold
harmless the Administrative Agent, each Lender Party and each of their
Affiliates and their officers, directors, trustees, employees, agents and
advisors (each, an “Indemnified Party”) from and against any and all
claims, damages, losses, liabilities and expenses (including, without
limitation, reasonable fees and expenses of counsel) that may be incurred by or
asserted or awarded against any Indemnified Party, in each case arising out of
or in connection with or by reason of (including, without limitation, in
connection with any investigation, litigation or proceeding or preparation of a
defense in connection therewith) (i) the Facilities, any real property
owned by, leased by or leased to any Loan Party, the actual or proposed use of
the proceeds of the Advances or the Letters of Credit, the Loan Documents or
any of the transactions contemplated thereby or (ii) the actual or alleged
presence of Hazardous Materials on any property of any Loan Party or any of its
Subsidiaries or any Environmental Action relating in any way to any Loan Party
or any of its Subsidiaries, except to the extent, in each case, such claim,
damage, loss, liability or expense is found in a final, non appealable judgment
by a court of competent jurisdiction to have resulted from such Indemnified
Party’s gross negligence or willful misconduct. 
In the case of an investigation, litigation or other proceeding to which
the indemnity in this Section 8.04(b) applies, such indemnity shall
be effective whether or not such investigation, litigation or proceeding is
brought by any Loan Party, its directors, shareholders or creditors or an Indemnified
Party or any Indemnified Party is otherwise a party thereto and whether or not
the transactions contemplated hereby are consummated.

 

(c)                                  If any payment of principal of, or
Conversion of, any Eurodollar Rate Advance is made by the Borrower to or for
the account of a Lender Party other than on the last day of the Interest Period
for such Advance, as a result of a payment or Conversion pursuant to Section 2.06,
2.09(b)(i) or 2.10(c), acceleration of the maturity of the Notes pursuant
to Section 6.01 or for any other reason, the Borrower shall, upon demand by such Lender Party
(with a copy of such demand to the Administrative Agent), pay to the
Administrative Agent for the account of such Lender Party any amounts required
to compensate such Lender Party for any additional losses, costs or expenses
that it may reasonably incur as a result of such payment, including,

 

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without limitation, any loss (including loss of anticipated profits),
cost or expense incurred by reason of the liquidation or reemployment of
deposits or other funds acquired by any Lender Party to fund or maintain such
Advance.

 

(d)                                 If any Loan Party fails to pay when due
any costs, expenses or other amounts payable by it under any Loan Document, including, without limitation, fees and expenses
of counsel and indemnities, such amount may be paid on behalf of such Loan
Party by the Administrative Agent or any Lender Party, in its sole discretion.

 

(e)                                  Without prejudice to the survival of any
other agreement of any Loan Party hereunder or under any other Loan Document, the agreements and obligations of the
Borrower contained in Sections 2.10 and 2.12 and this Section 8.04 shall
survive the payment in full of principal, interest and all other amounts
payable hereunder and under any of the other Loan Documents.

 

SECTION 8.05.Right
of Set off.  Upon (a) the
occurrence and during the continuance of any Event of Default and (b) the
making of the request or the granting of the consent specified by Section 6.01
to authorize the Administrative Agent to declare the Notes due and payable
pursuant to the provisions of Section 6.01, each Lender Party and each of
its respective Affiliates is hereby authorized at any time and from time to
time, to the fullest extent permitted by law, to set off and otherwise apply
any and all deposits (general or special, time or demand, provisional or final)
at any time held and other indebtedness at any time owing by such Lender Party
or such Affiliate to or for the credit or the account of the Borrower against
any and all of the Obligations of the Borrower now or hereafter existing under
this Agreement and the Note or Notes (if any) held by such Lender Party,
irrespective of whether such Lender Party shall have made any demand under this
Agreement or such Note or Notes and although such obligations may be
unmatured.  Each Lender Party agrees
promptly to notify the Borrower after any such set off and application; provided,
however, that the failure to give such notice shall not affect the
validity of such set off and application. 
The rights of each Lender Party and its respective Affiliates under this
Section are in addition to other rights and remedies (including, without
limitation, other rights of set off) that such Lender Party and its respective
Affiliates may have.  Notwithstanding
anything herein to the contrary, the foregoing provisions of this Section 8.05
shall be subject to the provisions of Section 2.20(q).

 

SECTION 8.06.Binding
Effect.  This Agreement shall become effective
when it shall have been executed by the Borrower and the Administrative Agent
and when the Administrative Agent shall have been notified by each Initial
Lender, the Swingline Bank and the Initial Issuing Bank that such Person has
executed it and thereafter shall be binding upon and inure to the benefit of
the Borrower, the Administrative Agent and each Lender Party and their
respective successors and assigns, except that the Borrower shall not have the
right to assign its rights or Obligations hereunder or any interest herein
without the prior written consent of the Lender Parties.

 

SECTION 8.07.Assignments
and Participations.  (a)  Each
Lender may assign all or a portion of its interests, rights and obligations
under this Agreement (including all or a portion of its Commitment (if still in
existence) and the Advances at the time owing to it and the Note or Notes held
by it) to one or more assignees (other than (x) the Borrower, any

 

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Subsidiary or any of
their respective Affiliates and (y) any natural Person); provided, however,
that (i) (x) the Administrative Agent (and, regardless of the
identity of the assignee, each Issuing Bank) must consent to such assignment in
writing (which consent may not be unreasonably withheld or delayed), except in
the case of an assignment by a Lender to an Affiliate of such Lender, to
another Lender or to a Related Fund of a Lender, and (y) the Borrower must
consent to such assignment in writing (which may not be unreasonably withheld
or delayed) at any time when no Default or Event of Default is continuing
hereunder, except in the case of an assignment by a Lender to an Affiliate of
such Lender, to another Lender or to a Related Fund of a Lender, (ii) each
such assignment shall be of a uniform, and not a varying, percentage of all
rights and obligations under and in respect of the Revolving Credit Facility or
the Last Out Term Facility, (iii) except in the case of an assignment to a
Person that, immediately prior to such assignment, was a Lender, an Affiliate
of any Lender or a Related Fund of any Lender or an assignment which will
result in a group of Lenders which are managed by the same Person holding a
Commitment or an Advance (as the case may be) of not less than $1,000,000 or an
assignment of all of a Lender’s rights and obligations under this Agreement,
the amount of the Commitment of the assigning Lender being assigned pursuant to
each such assignment (determined as of the date of the Assignment and
Acceptance with respect to such assignment) shall in no event be less than
$1,000,000 (or integral multiples of $200,000 in excess thereof), (iii) the
parties to each such assignment shall execute and deliver to the Administrative
Agent, for its acceptance and recording in the Register, an Assignment and
Acceptance, together with any Note or Notes subject to such assignment and,
other than in the case of an assignment to an Affiliate of such Lender, a
processing and recordation fee of $3,500, provided that only one such
fee shall be payable in connection with simultaneous assignments by or to two
or more Related Funds, and (iv) for the avoidance of doubt, (A) any
assignment of Advances that are Last Out Term Advances shall continue to be
Last Out Term Advances and (B) the related Assignment and Acceptance shall
expressly provide that the Advances so assigned are Last Out Term Advances.

 

(b)                                 Upon such execution, delivery, acceptance
and recording, from and after the effective date specified in such Assignment
and Acceptance, (x) the assignee thereunder shall be a party hereto and,
to the extent that rights and obligations hereunder have been assigned to it
pursuant to such Assignment and Acceptance, have the rights and obligations of
a Lender or Issuing Bank, as the case may be, hereunder and (y) the Lender
or Issuing Bank assignor thereunder shall, to the extent that rights and
obligations hereunder have been assigned by it pursuant to such Assignment and
Acceptance, relinquish its rights and be released from its obligations under
this Agreement (and, in the case of an Assignment and Acceptance covering all
or the remaining portion of an assigning Lender’s or Issuing Bank’s rights and
obligations under this Agreement, such Lender or Issuing Bank shall cease to be
a party hereto but shall continue to be entitled to the benefits of Sections
2.10, 2.12 and 8.04).

 

(c)                                  By executing and delivering an Assignment
and Acceptance, the Lender Party assignor thereunder and the assignee
thereunder confirm to and agree with each other and the other parties hereto as
follows:  (i) other than as provided
in such Assignment and Acceptance, such assigning Lender Party makes no
representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in
or in connection with this Agreement or any other Loan Document or the
execution, legality, validity, enforceability, genuineness, sufficiency or
value of, or the perfection or priority of any lien or security interest
created or purported to be created under or in connection with, this Agreement

 

145

 

or any other Loan Document or any other instrument or document
furnished pursuant hereto or thereto; (ii) such assigning Lender Party
makes no representation or warranty and assumes no responsibility with respect
to the financial condition of the Borrower or any other Loan Party or the
performance or observance by any Loan Party of any of its obligations under any
Loan Document or any other instrument or document furnished pursuant thereto; (iii) such
assignee confirms that it has received a copy of this Agreement, together with
copies of the financial statements referred to in Section 5.01 and such
other documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into such Assignment and Acceptance; (iv) such
assignee will, independently and without reliance upon the Administrative
Agent, such assigning Lender Party or any other Lender Party and based on such documents
and information as it shall deem appropriate at the time, continue to make its
own credit decisions in taking or not taking action under this Agreement; (v) such
assignee appoints and authorizes the Administrative Agent to take such action
as agent on its behalf and to exercise such powers and discretion under the
Loan Documents as are delegated to the Administrative Agent by the terms
hereof, together with such powers and discretion as are reasonably incidental
thereto; and (vi) such assignee agrees that it will perform in accordance
with their terms all of the obligations which by the terms of this Agreement
are required to be performed by it as a Lender or Issuing Bank, as the case may
be.

 

(d)                                 The Administrative Agent, acting for this
purpose (but only for this purpose) as the agent of the Borrower, shall
maintain at its address referred to in Section 8.02 a copy of each
Assignment and Acceptance delivered to and accepted by it and a register for
the recordation of the names and addresses of the Lender Parties and the
Commitment of, and principal amount of the Advances owing under the DIP
Facility to, each Lender Party from time to time (the “Register”).  The entries in the Register shall be
conclusive and binding for all purposes, absent manifest error, and the
Borrower, the Administrative Agent and the Lender Parties shall treat each
Person whose name is recorded in the Register as a Lender Party hereunder for
all purposes of this Agreement.  The
Register shall be available for inspection by the Borrower or any Lender Party
at any reasonable time and from time to time upon reasonable prior notice.

 

(e)                                  Upon its receipt of an Assignment and
Acceptance executed by an assigning Lender Party and an assignee, together with
any Note or Notes subject to such assignment, the Administrative Agent shall,
if such Assignment and Acceptance has been completed and is in substantially
the form of Exhibit C hereto, (i) accept such Assignment and
Acceptance, (ii) record the information contained therein in the Register
and (iii) give prompt notice thereof to the Borrower.  In the case of any assignment by a Lender,
within five Business Days after its receipt of such notice, the Borrower, at
its own expense, shall execute and deliver to the Administrative Agent in
exchange for the surrendered Note or Notes a new Note to the order of the
assignee or transferee of such Lender’s interest in an amount equal to the
Commitment assumed by it under the DIP Facility pursuant to such Assignment and
Acceptance and, if the assigning Lender has retained a Commitment hereunder, a
new Note to the order of the assigning Lender in an amount equal to the
Commitment retained by it hereunder. 
Such new Note or Notes shall be in an aggregate principal amount equal
to the aggregate principal amount of such surrendered Note or Notes, shall be
dated the effective date of such Assignment and Acceptance and shall otherwise
be in substantially the form of Exhibit A.

 

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(f)                                    Each Lender Party may sell participations
to one or more Persons (other than any Loan Party or any of its Affiliates) in
or to all or a portion of its rights and obligations under this Agreement
(including, without limitation, all or a portion of its Commitment, the Advances owing to it and the Note or
Notes (if any) held by it); provided, however, that (i) such
Lender Party’s rights and obligations under this Agreement (including, without
limitation, its Commitments) shall remain unchanged, (ii) such Lender
Party shall remain solely responsible to the other parties hereto for the
performance of such obligations, (iii) such Lender Party shall remain the
holder of any such Note for all purposes of this Agreement, (iv) the
Borrower, the Administrative Agent and the other Lender Parties shall continue
to deal solely and directly with such Lender Party in connection with such
Lender Party’s rights and obligations under this Agreement, (v) no
participant under any such participation shall have any right to approve any
amendment or waiver of any provision of any Loan Document, or any consent to any
departure by any Loan Party therefrom, except to the extent that such
amendment, waiver or consent would reduce the principal of, or interest (other
than increased interest following Default pursuant to Section 2.07(b)) on,
the Notes or any fees or other amounts payable hereunder, in each case to the
extent subject to such participation, postpone the Termination Date, or date
fixed for payment of interest on, the Notes or any fees or other amounts
payable hereunder, in each case to the extent subject to such participation,
and (vi) the Borrower shall not be subject to any increased liability to
any Lender Party pursuant to this Agreement by virtue of such participation.

 

(g)                                 Any Lender Party may, in connection with
any assignment or participation or proposed assignment or participation pursuant to this Section 8.07, disclose to
the assignee or participant or proposed assignee or participant, any
information relating to the Borrower furnished to such Lender Party by or on
behalf of the Borrower; provided, however, that, prior to any
such disclosure, the assignee or participant or proposed assignee or
participant shall agree to preserve the confidentiality of any Confidential
Information received by it from such Lender Party.

 

(h)                                 Notwithstanding any other provision set
forth in this Agreement, any Lender Party may at any time create a security
interest in all or any
portion of its rights under this Agreement (including, without limitation, the
Advances owing to it and the Note or Notes held by it) in favor of any Federal
Reserve Bank in accordance with Regulation A of the Board of Governors of the
Federal Reserve System.

 

(i)                                     Notwithstanding anything to the contrary
contained herein, any Lender that is a fund that invests in bank loans may
create a security interest in all or any portion of the Advances owing to it
and the Note or Notes held by it to the trustee or other representative for holders of obligations owed, or
securities issued, by such fund as security for such obligations or securities,
provided that, unless and until such trustee or other representative
actually becomes a Lender in compliance with the other provisions of this Section 8.07,
(i) no such pledge shall release the pledging Lender from any of its
obligations under the Loan Documents and (ii) such trustee or
representative shall not be entitled to exercise any of the rights of a Lender
under the Loan Documents even though such trustee or representative may have
acquired ownership rights with respect to the pledged interest through
foreclosure or otherwise.

 

SECTION 8.08.Replacements
of Lenders Under Certain Circumstances. 
The Borrower shall be permitted to replace any Lender that (a) requests
reimbursement for

 

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amounts owing pursuant to
Section 2.10 or 2.12, (b) is affected in the manner described in Section 2.10(c) 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 Requirement of Law, (ii) no Event
of Default shall have occurred and be continuing at the time of such
replacement, (iii) the replacement bank or institution shall purchase and
acquire, at par all Unused Revolving Credit Commitments of, and Advances and
pay an amount equal thereto and pay such other amounts (other than any disputed
amounts), pursuant to Section 2.10, 2.11 or 2.12, as the case may be,
owing to, such replaced Lender, in each case prior to the date of replacement (iv) the
replacement bank or institution shall pay to the Swingline Bank an amount equal
to such replaced Lender’s Pro Rata Share of any Mandatory Borrowing to the
extent that such amount was not previously made available by the replaced
Lender to the Swingline Bank in accordance with Section 2.02(c)), in each
case prior to the date of replacement, (v) the replacement bank or
institution shall pay to each Issuing Bank an amount equal to such replaced
Lender’s participation in Letter of Credit Outstandings (to the extent that at
such time any Letter of Credit Advances have not been reimbursed in accordance
with Section 2.03(e)(i) by such replaced Lender), in each case prior
to the date of replacement, (vi) 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, (vii) the replaced
Lender shall be obligated to make such replacement in accordance with the
provisions of Section 8.07 (provided that the Borrower shall be obligated
to pay the registration and processing fee referred to therein) and (viii) any
such replacement shall not be deemed to be a waiver of any rights that the
Borrower, the Administrative Agent or any other Lender Party shall have against
the replaced Lender.

 

SECTION 8.09.Execution
in Counterparts.  This Agreement may
be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement.  Delivery of an executed
counterpart of a signature page to this Agreement by telecopier shall be
effective as delivery of a manually executed counterpart of this Agreement.

 

SECTION 8.10.No
Liability of an Issuing Bank.  The
Borrower assumes all risks of the acts or omissions of any beneficiary or
transferee of any Letter of Credit with respect to its use of such Letter of
Credit.  Neither any Issuing Bank nor any
of its officers or directors shall be liable or responsible for:  (a) the use that may be made of any
Letter of Credit or any acts or omissions of any beneficiary or transferee in
connection therewith; (b) the validity, sufficiency or genuineness of
documents, or of any endorsement thereon, even if such documents should prove
to be in any or all respects invalid, insufficient, fraudulent or forged; (c) payment
by any Issuing Bank against presentation of documents that do not comply with
the terms of a Letter of Credit, including failure of any documents to bear any
reference or adequate reference to the Letter of Credit; or (d) any other
circumstances whatsoever in making or failing to make payment under any Letter
of Credit, except that the Borrower shall have a claim against an Issuing Bank,
and such Issuing Bank shall be liable to the Borrower, to the extent of any
direct, but not consequential, damages suffered by the Borrower that the
Borrower proves were caused by such Issuing Bank’s (i) willful misconduct
or gross negligence (as determined in a final, non appealable judgment by a
court of competent jurisdiction) in determining whether documents presented
under any Letter of Credit comply with the terms of the Letter of Credit or (ii) willful

 

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failure (as determined in
a final, non appealable judgment by a court of competent jurisdiction) to make
lawful payment under a Letter of Credit after the presentation to it of a draft
and certificates strictly complying with the terms and conditions of the Letter
of Credit.  In furtherance and not in
limitation of the foregoing, an Issuing Bank may accept documents that appear
on their face to be in order, without responsibility for further investigation,
regardless of any notice or information to the contrary.

 

SECTION 8.11.Confidentiality.  (a)  The Administrative Agent and each
Lender shall hold all non-public information furnished by or on behalf of the
Borrower in connection with such Lender’s evaluation of whether to become a
Lender hereunder or obtained by such Lender or the Administrative Agent
pursuant to the requirements of this Agreement (“Confidential Information”),
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.  Neither the Administrative Agent nor any
Lender Party shall disclose any Confidential Information to any Person without
the consent of the Borrower, other than (i) to the Administrative Agent’s
or such Lender Party’s Affiliates and their officers, directors, trustees,
employees, agents and advisors, to pledgees under Section 8.07(i) and
to actual or prospective assignees and participants, and then only on a
confidential basis, (ii) as required by any law, rule or regulation
or judicial process and (iii) as requested or required by any state,
federal or foreign authority or examiner regulating such Lender Party or the
Administrative Agent.

 

(b)                                 The Borrower, the Administrative Agent
and each Lender Party (and each of their respective officers, directors,
employees, accountants, attorneys and other advisors, agents and
representatives) may disclose to any and all persons, without limitation of any
kind, the U.S. tax treatment and U.S. tax structure of the transactions
contemplated by this Agreement or any other Loan Document and all materials of
any kind (including opinions and other tax analyses) that are provided to any
of them relating to such U.S. tax treatment and U.S. tax structure.

 

SECTION 8.12.Release
of Collateral.  (a)  Upon the
sale, lease, transfer or other disposition of any item of Collateral of any Loan
Party (including, without limitation, as a result of the sale, in accordance
with the terms of the Loan Documents, of the Loan Party that owns such
Collateral) in accordance with the terms of the Loan Documents, the
Administrative Agent will, at the Borrower’s expense, execute and deliver to
such Loan Party such documents as such Loan Party may reasonably request to
evidence the release of such item of Collateral from the assignment and
security interest granted under the Collateral Documents in accordance with the
terms of the Loan Documents.

 

(b)                                 Upon the sale, lease, transfer or other
disposition of all of the capital stock of any Loan Party that is Subsidiary Guarantor in accordance with the terms of the Loan
Documents and the Orders, the Collateral Agent will, at the Borrower’s expense,
execute and deliver to such Loan Party such documents as such Loan Party may
reasonably request to evidence its release as a Subsidiary Guarantor from its
Obligations under the Guarantee and Collateral Agreement in accordance with the
terms of the Loan Documents.

 

149

 

SECTION 8.13.USA
Patriot Act.  Each Lender that is
subject to the USA Patriot Act and the Administrative Agent (for itself and not
on behalf of any Lender) hereby notifies each Loan Party that, pursuant to the
requirements of the USA Patriot Act, it is required to obtain, verify and
record information that identifies such Loan Party, which information includes
the name, address and tax identification number of such Loan Party and other
information regarding such Loan Party that will allow such Lender or the
Administrative Agent, as applicable, to identify such Loan Party in accordance
with the USA Patriot Act.  This notice is
given in accordance with the requirements of the USA Patriot Act and is
effective as to the Lenders and the Administrative Agent.

 

SECTION 8.14.Jurisdiction,
Etc.  (a)  Each of the parties
hereto hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of the Bankruptcy Court and, if the
Bankruptcy Court does not have or abstains from jurisdiction, any New York
State court or federal court of the United States of America sitting in New
York City, and any appellate court from any thereof, in any action or
proceeding arising out of or relating to this Agreement or any of the other
Loan Documents to which it is a party, or for recognition or enforcement of any
judgment, and each of the parties hereto hereby irrevocably and unconditionally
agrees that all claims in respect of any such action or proceeding may be heard
and determined in any such New York State court or, to the extent permitted by
law, in such federal court.  The Borrower
irrevocably consents to the service of any and all process in any such action
or proceeding by the mailing of copies of such process by registered or
certified mail (or any substantially similar form of mail), postage prepaid, to
the Borrower at its address specified in Section 8.02 and 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.  Each of the parties hereto
agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law. 
Nothing in this Agreement shall affect any right that any party may
otherwise have to bring any action or proceeding relating to this Agreement or
any of the other Loan Documents in the courts of any jurisdiction.

 

(b)                                 Each of the parties hereto irrevocably
and unconditionally waives, to the fullest extent it may legally and
effectively do so, any objection that it may now or hereafter have to the laying
of venue of any suit, action or proceeding arising out of or relating to this
Agreement or any of the other Loan Documents to which it is a party in any New
York State or federal court.  Each of the
parties hereto hereby irrevocably waives, to the fullest extent permitted by
law, the defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court.

 

SECTION 8.15.Judgment.  (a)  If for the purposes of obtaining
judgment in any court it is necessary to convert a sum due hereunder or under
any of the other Loan Documents in U.S. Dollars into another currency, the
parties hereto agree, to the fullest extent that they may effectively do so,
that the rate of exchange used shall be that at which in accordance with normal
banking procedures the Administrative Agent could purchase U.S. Dollars with
such other currency at DBTCA on the Business Day preceding that on which final
judgment is given.

 

150

 

(b)                                 The obligation of the Borrower in respect
of any sum due from it to any Lender Party or the Administrative Agent hereunder or under any of the other Loan Documents
held by such Lender Party shall, notwithstanding any judgment in a currency
other than U.S. Dollars, be discharged only to the extent that on the Business
Day of receipt by such Lender Party or the Administrative Agent (as the case
may be) of any sum adjudged to be so due in such other currency such Lender
Party or the Administrative Agent (as the case may be) may in accordance with
normal banking procedures purchase U.S. Dollars with such other currency; if
the U.S. Dollars so purchased are less than the sum originally due by the
Borrower to such Lender Party or the Administrative Agent (as the case may be)
in U.S. Dollars, the Borrower agrees, as a separate obligation and
notwithstanding any such judgment, to indemnify such Lender Party or the
Administrative Agent (as the case may be) against such loss, and if the U.S.
Dollars so purchased exceed the sum originally due by the Borrower to any
Lender Party or the Administrative Agent (as the case may be) in U.S. Dollars,
such Lender Party or the Administrative Agent (as the case may be) agrees to
remit to the Borrower such excess.

 

SECTION 8.16.Governing
Law.  Subject to the jurisdiction of
the Bankruptcy Court, this Agreement and the Notes shall be governed by, and
construed in accordance with, the laws of the State of New York, United States
(without regard to conflicts of laws principles) and, to the extent applicable,
the Bankruptcy Code.

 

SECTION 8.17.Waiver
of Jury Trial.  The Borrower, the
Administrative Agent and the Lender Parties irrevocably waives all right to
trial by jury in any action, proceeding or counterclaim (whether based on
contract, tort or otherwise) arising out of or relating to any of the Loan
Documents, the Advances or the actions of the Administrative Agent or any
Lender Party in the negotiation, administration, performance or enforcement
thereof.

 

SECTION 8.18.Parties
Including Trustees; Bankruptcy Court Proceedings.  This Agreement, the other Loan Documents, and
all Liens and other rights and privileges created hereby or pursuant hereto or
to any other Loan Document shall be binding upon each Debtor, the estate of
each Debtor, and any trustee, other estate representative or any successor in
interest of any Debtor in any Chapter 11 Case or any subsequent case commenced
under Chapter 7 of the Bankruptcy Code. 
This Agreement and the other Loan Documents shall be binding upon, and
inure to the benefit of, the successors of the Administrative Agent and the
Lenders and their respective assigns, transferees and endorsees.  The Liens created by this Agreement and the
other Loan Documents shall be and remain valid and perfected in the event of
the substantive consolidation or conversion of any Chapter 11 Case or any other
bankruptcy case of any Debtor to a case under Chapter 7 of the Bankruptcy Code
or in the event of dismissal of any Chapter 11 Case or the release of any
Collateral from the jurisdiction of the Bankruptcy Court for any reason,
without the necessity that the Administrative Agent file financing statements
or otherwise perfect its Lien under applicable law.  No Debtor may assign, transfer, hypothecate
or otherwise convey its rights, benefits, obligations or duties hereunder or
under any of the other Loan Documents without the prior written consent of the
Administrative Agent and the Lenders. 
Any such purported assignment, transfer, hypothecation or other conveyance
by any Debtor without the prior express written consent of the Administrative
Agent and the Lenders shall be void.  The
terms and provisions of this Agreement are for the purpose of defining the
relative rights and obligations of each Debtor, the Administrative Agent and
Lenders with respect to the

 

151

 

transactions contemplated
hereby, and no Person shall be a third party beneficiary of any of the terms
and provisions of this Agreement or any of the other Loan Documents.

 

SECTION 8.19.Prepetition
Loan Documents.  The Borrower, on
behalf of itself and the other Loan Parties, hereby agrees that (i) this
Agreement is separate and distinct from the Prepetition Credit Agreement and (ii) the
Prepetition Credit Agreement is in full force and effect.  The Borrower further agrees, on behalf of
itself and the other Loan Parties, that by entering into this Agreement,
Lenders do not waive any Default or Event of Default under the Prepetition Loan
Documents or any of their liens, claims, priorities, rights and remedies
thereunder.

 

SECTION 8.20.Conflict
of Terms.  Except as otherwise
provided in this Agreement or any of the other Loan Documents by specific
reference to the applicable provisions of this Agreement, and subject to the
immediately following sentence, if any provision contained in this Agreement
conflicts with any provision in any of the other Loan Documents, the provision
contained in this Agreement shall govern and control.  NOTWITHSTANDING THE FOREGOING, IF ANY
PROVISION IN THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT CONFLICTS WITH ANY
PROVISION IN THE INTERIM BORROWING ORDER OR FINAL BORROWING ORDER, THE
PROVISION IN THE INTERIM BORROWING ORDER OR FINAL BORROWING ORDER SHALL GOVERN
AND CONTROL.

 

152Exhibit 10.4

 

EXECUTION
COPY

 

FOURTH AMENDMENT AND CANADIAN FORBEARANCE AGREEMENT

 

FOURTH AMENDMENT AND CANADIAN FORBEARANCE
AGREEMENT, dated as of October 8, 2009 (together with all schedules
hereto, this “Agreement”), among ACCURIDE CORPORATION, a Delaware
corporation (the “U.S. Borrower”), ACCURIDE CANADA INC., a corporation
organized and existing under the law of the Province of Ontario (the “Canadian
Borrower”, and, together with the U.S. Borrower, the “Borrowers”),
the Subsidiary Guarantors (defined below, and together with the Borrowers, the “Loan
Parties”) and the Specified Senior Lenders (as defined below) relating to
the Senior Prepetition Credit Agreement (as defined below).  Capitalized terms used but not otherwise
defined herein shall have the respective meanings ascribed to such terms in the
Prepetition Loan Documents (defined below).

 

W  I  T  N  E
S  S  E  T  H :

 

(A)          WHEREAS, the U.S. Borrower, the
Canadian Borrower and the Subsidiary Guarantors party thereto (the “Subsidiary
Guarantors”), the banks, financial institutions and other institutional
lenders party from time to time thereto (collectively, the “Lenders”)
and DEUTSCHE BANK TRUST COMPANY AMERICAS, as administrative agent for the
Lenders (in such capacity, the “Administrative Agent”) have entered into
(i) that certain Fourth Amended and Restated Credit Agreement dated as of January 31,
2005 (as heretofore amended, supplemented or otherwise modified, the “Senior
Prepetition Credit Agreement”) and (ii) each other “Loan Document” (as
defined in the Senior Prepetition Credit Agreement), (collectively with the
Senior Prepetition Credit Agreement, the “Prepetition Loan Documents”)

 

(B)           WHEREAS, pursuant to the Senior
Prepetition Credit Agreement, the Lenders have made certain loans to the
Borrowers;

 

(C)           WHEREAS, as a result of the then
likely occurrence of certain Events of Default under the Senior Prepetition
Credit Agreement, Citicorp USA, Inc., as Administrative Agent at such
time, and the Lenders entered into that certain Temporary Waiver Agreement (the
“First Temporary Waiver Agreement”), dated as of July 1, 2009,
whereby the Lenders agreed to temporarily waive the Scheduled Defaults until
the Temporary Waiver Termination Date as so defined therein (hereinafter
defined as the “First Temporary Waiver Termination Date”);

 

(D)          WHEREAS, as a result of the occurrence
and/or continuation of certain Events of Default after the First Temporary
Waiver Termination Date under the Senior Prepetition Credit Agreement, the
Administrative Agent and the Lenders entered into that certain Second Temporary
Waiver Agreement  (the “Second
Temporary Wavier Agreement”), dated as of August 14, 2009, whereby the
Lenders agreed to extend the temporary waiver of the Scheduled Defaults and
temporarily waive the Additional Default until the Second Temporary Waiver
Termination Date as so defined therein (hereinafter defined as the “Second
Temporary Waiver Termination Date”);

 

(E)           WHEREAS, as a result of the
occurrence and/or continuation of certain Events of Default after the Second
Temporary Waiver Termination Date under the Senior Prepetition Credit
Agreement, the Administrative Agent and the Lenders entered into that certain 

 

 

Third Temporary Waiver Agreement  (the “Third Temporary Wavier Agreement”),
dated as of September 15, 2009, whereby the Lenders agreed to extend the
temporary waiver of the Scheduled Defaults and the Additional Default and
temporarily waive the Technical Default until the Third Temporary Waiver
Termination Date as so defined therein (hereinafter defined as the “Third
Temporary Waiver Termination Date”);

 

(F)           WHEREAS, as a result of the
occurrence and/or continuation of certain Events of Default after the Third
Temporary Waiver Termination Date under the Senior Prepetition Credit
Agreement, the Administrative Agent and the Lenders entered into that certain
Fourth Temporary Waiver Agreement  (the “Fourth
Temporary Wavier Agreement”), dated as of September 30, 2009, whereby
the Lenders agreed to extend the temporary waiver of the Scheduled Defaults,
the Additional Default and the Technical Default until October 5, 2009
(the “Fourth Temporary Waiver Termination Date”);

 

(G)           WHEREAS, as a result of the
occurrence and/or continuation of certain Events of Default after the Fourth
Temporary Waiver Termination Date under the Senior Prepetition Credit
Agreement, the Administrative Agent and the Lenders entered into that certain
Fifth Temporary Waiver Agreement  (the “Fifth
Temporary Wavier Agreement”), dated as of October 5, 2009, whereby the
Lenders agreed to extend the temporary waiver of the Scheduled Defaults, the
Additional Default and the Technical Default until 9:00 a.m. (eastern
standard time) on October 8, 2009 (the “Fifth Temporary Waiver
Termination Date”);

 

(H)          WHEREAS, the Administrative Agent and
the Lenders will, if the Scheduled Defaults, the Additional Default or the
Technical Default occur(s) and remain(s) continuing as a result of
the Fifth Temporary Waiver Termination Date occurring, be entitled to exercise
all of their rights and remedies under the Senior Prepetition Credit Agreement,
the other Prepetition Loan Documents, applicable law and in equity (such
rights, remedies and actions, collectively, “Enforcement Actions”),
including without limitation, to declare to be immediately due and payable the
outstanding principal of the Advances, all accrued interest thereon and all
fees and other obligations owing to the Administrative Agent and the Lenders
under the Senior Prepetition Credit Agreement and the other Prepetition Loan
Documents;

 

(I)            WHEREAS, each of the Loan Parties
(other than the Canadian Borrower) and certain of their respective subsidiaries
and affiliates expect to file as debtors-in-possession (in such capacity, the “Debtors”)
under Chapter 11 of the United States Bankruptcy Code (collectively the “Bankruptcy
Filings”) in the United States Bankruptcy Court for the District of
Delaware (the “Bankruptcy Court”);

 

(J)            WHEREAS, the Loan Parties have
notified the Specified Senior Lenders that unless a forbearance is provided
(and without prejudice to the rights and remedies of the Administrative Agent
and the Lenders under the Senior Prepetition Credit Agreement, the other
Prepetition Loan Documents, applicable law and in equity), the Canadian
Borrower would be required to commence with the applicable Canadian court,
voluntary proceedings (in such capacity, an “Additional Debtor”) under
the Companies’ Creditor Arrangement Act (Canada) in an applicable court of
competent jurisdiction in Canada due to Events of Default under the Prepetition
Loan Documents resulting from the Bankruptcy Filings;

 

2

 

(K)          WHEREAS, the Canadian Borrower does
not intend to become an Additional Debtor and is not and shall not be a
debtor-in-possession in the Bankruptcy Filings;

 

(L)           WHEREAS, that certain Senior Secured
Superpriority Debtor-In-Possession Credit Agreement is expected to be entered
into in connection with the Bankruptcy Filings (as amended, supplemented or
otherwise modified from time to time, including any substitution, replacement,
refinancing, renewal or extension thereof, the “DIP Credit Agreement”)
by the U.S. Borrower as borrower and the Subsidiary Guarantors as guarantors,
Deutsche Bank Trust Company Americas, as DIP administrative agent and DIP
collateral agent, Deutsche Bank Trust Company Americas, as DIP issuing bank and
DIP swingline bank, Deutsche Bank Securities Inc. as lead arranger, General
Electric Capital Corporation as syndication agent, and the DIP lenders from
time to time party thereto;

 

(M)         WHEREAS, the Loan Parties have notified
the Lenders that the Specified Events of Defaults have occurred and are
existing on the date hereof;

 

(N)          WHEREAS, notwithstanding the Specified
Events of Default, the Loan Parties have requested, and those certain Senior
Lenders under the Senior Prepetition Credit Agreement party to this Agreement,
including by way of joinder hereto (collectively, together with their
respective successors and assigns, the “Specified Senior Lenders”) are
willing, through the Forbearance Termination Date (as defined below) with
respect to each Specified Senior Lender, to forbear in the enforcement of their
remedies set forth in the Prepetition Loan Documents available to it at law or
in equity, such forbearance to occur to the extent, and strictly on the terms
and conditions, set forth herein.

 

NOW, THEREFORE, in consideration of the
premises, the mutual covenants contained herein and for other valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the
Loan Parties and the Specified Senior Lenders hereby agree as follows:

 

ARTICLE I

 

Definitions;
Acknowledgments

 

Section 1.1.  Definitions.  As used in this Agreement, the following
terms shall have the meanings set forth below:

 

“Canadian Borrower Forbearance Condition”
means, on any date, a condition that will be satisfied if the Canadian Borrower
has complied with each of the following covenants set forth in the Senior
Prepetition Credit Agreement (as modified below), with such provisions to be
interpreted as if the Canadian Borrower is the only “Borrower” and the only “Restricted
Subsidiary” thereunder:

 

(a)       Liens,
Etc.  The covenants set forth in
5.02(a); provided no Liens in excess of $500,000 may be created,
incurred, assumed or suffered to exist after the Effective Date under Section 5.2(a)(x).

 

3

 

(b)       Debt
– The covenants set forth in Section 5.02(b); provided that (x) no
other Subordinated Debt may be incurred after the Effective Date under Section 5.02(b)(i)(A),
(y) no Debt other than unsecured Debt may be incurred after the Effective
Date under Section 5.02(b)(iii)(I) and (z) the following U.S.
Dollar values shall be adjusted with respect to any Debt to be incurred after
the Effective Date:

 

i.              in
Section 5.02(b)(iii)(B), $25,000,000 shall be reduced to $500,000;

 

ii.         in
Section 5.02(b)(iii)(D), $50,000,000 shall be reduced to $0; and

 

iii.        in
Section 5.02(b)(iii)(I), $125,000,000 shall be reduced to $500,000.

 

(c)       Asset
Sales – The covenants set forth in Section 5.02(d); provided
that no asset sales may be made after the Effective Date other than pursuant to
Section 5.02(d)(i).

 

(d)       Investments
– The covenants set forth in Section 5.02(e); provided that (x) no
investment(s) shall be made pursuant to Section 5.02(e)(ii) in
the aggregate in excess of $250,000 after the Effective Date, (y) no
investment shall be made after the Effective Date pursuant to Section 5.02(e)(viii) and
(z) no investment(s) shall be made pursuant to Section 5.02(e)(xiii)
in the aggregate in excess of $500,000 after the Effective Date.

 

(e)       Prepayments,
Etc., of Debt – The covenants set forth in Section 5.02(g); provided
that no payment, redemption, purchase, defeasance or other satisfaction of any
Subordinated Debt may be made after the Effective Date pursuant to Section 5.02(g)(i).

 

(f)        Capital
Expenditures – The covenants set forth in Section 5.02(j); provided
that in Section 5.02(j), the U.S. Dollar value $50,000,000 shall be
reduced to $2,500,000 for the period commencing from and after the Effective
Date.

 

“Default Interest” means interest
accruing pursuant to, and in accordance with, Section 2.07(b) of the
Senior Prepetition Credit Agreement.

 

“Forbearance Period” means the
period from the Effective Date to, but excluding, the Forbearance Termination
Date.

 

“Milestone
Termination Date” means (a) at any time while the DIP Credit Agreement
is in effect and the definition of “Milestone Termination Date” is set forth
therein, the definition of “Milestone Termination Date” set forth in the DIP
Credit Agreement and (b) at any time while the DIP Credit Agreement is not
in effect or the definition of “Milestone Termination Date” is not set forth
therein, Wednesday, October 14, 2009.

 

“Perfected Account” means collectively: (a) the
accounts set forth in that certain letter agreement dated as of  August 14, 2009 (as amended or modified
from time to time) among Canadian Borrower, Administrative Agent and Fifth
Third Bank; and (b) all other “Account Collateral” (as defined in that
certain Security Agreement dated as of July 27, 2001 (as amended, modified
and supplemented from time to time) between Canadian Borrower and
Administrative Agent (as successor agent to Citicorp USA, Inc.), herein
the “Canadian Security Agreement”) 

 

4

 

pursuant to
which Administrative Agent has a perfected lien in accordance with the terms of
the Canadian Security Agreement.

 

“Petition Filing Date” means the
date upon which the U.S. Borrower’s Bankruptcy Filing is made by the filing of
a voluntary petition or the voluntary conversion of an involuntary bankruptcy
petition.

 

“Senior Subordinated Notes Forbearance”
means that certain Second Forbearance Agreement, dated as of September 30,
2009, among certain holders of the Senior Subordinated Notes, the U.S.
Borrower, certain guarantors of the Senior Subordinated Notes and The Bank of
New York Mellon Trust Company (f/k/a The Bank of New York Trust Company, N.A.),
as trustee.

 

“Specified Events of Default” means,
collectively, the Scheduled Defaults, the Additional Default, the Technical
Default and the Defaults and Events of Default under the Specified Sections (as
defined below) of the Senior Prepetition Credit Agreement, which have occurred
or may in the future occur as a result of:

 

(i)            the
Bankruptcy Filings (including failure to pay principal, interest and other
obligations existing as of the date of the Bankruptcy Filing as a result of the
the acceleration of such obligations under Section 7.01 of the Senior
Prepetition Credit Agreement),

 

(ii)           the
execution, delivery, filing, performance (including utilization of the cash
management system and granting liens required thereunder) and compliance with
terms of the DIP Credit Agreement and each “Loan Document” (as defined in the DIP
Credit Agreement) and the various instruments, documents and agreements entered
into or to be entered into in connection therewith (together, the “DIP Loan
Documents”) and the Orders (as defined in the DIP Credit Agreement, (the “Orders”)
and together with the DIP Loan Documents, the “DIP Documents”) by the
Debtors, and

 

(iii)          any
cross-default under Section 7.01(e) of the Senior Prepetition Credit
Agreement as a result of a default under any Debt.

 

“Specified
Sections” means for any Event of Default or Default arising in connection
with clauses (i) and (ii) under the definition of “Specified Events
of Default”,

 

(A)          With respect to any action or inaction
of the Canadian Borrower:

 

(i)            Section 7.01(a),

 

(ii)           7.01(c) (arising
under Section 5.03(a) for failure to give notice of any Specified
Event of Default or Section 5.04), and

 

(iii)          7.01(f);
and

 

(B)           With respect to any action or
inaction of any other Loan Party, other than the Canadian Borrower:

 

5

 

(i)            Section 7.01(a),

 

(ii)           7.01(c) (arising
under Section 5.02(a), (b) or (k), Section 5.03(a) for
failure to give notice of any Specified Event of Default or Section 5.04),

 

(iii)          Section 7.01(d) (arising
under Sections 5.01(b), Section 5.01(l), 5.03(c), 5.03(d), 5.03(e), any of
the provisions of the Guarantee and Collateral Agreement and any other
provisions of the other Loan Documents executed by the Debtors, which are
superseded by or otherwise contravene, violate or cannot be complied with as a
result of clauses (i) and (ii) in the definition of Specified Events
of Default),

 

(iv)          Section 7.01(e),

 

(v)           Section 7.01(f),

 

(vi)          Section 7.01(i) and

 

(vii)         Section 7.01(k).

 

Section 1.2.  Outstanding Indebtedness.  Each Loan Party under the Prepetition Loan
Documents, acknowledges and agrees that (a) as of 5:00 pm New York time on
the date hereof, the Obligations include, without limitation, the amounts set
forth on Schedule 1(1) attached hereto on account of the outstanding
unpaid amount of principal of, accrued and unpaid interest on, and fees and
commissions related to, the Advances and on account of the aggregate face
amount of the Letters of Credit issued by the Issuing Bank and for fees and
expenses (including any attorneys’, accountants’, appraisers’ and financial
advisors’ fees that are chargeable or reimbursable under the Prepetition Loan
Documents), charges and other obligations incurred in connection therewith as
provided in the Prepetition Loan Documents (collectively, the “Outstanding
Indebtedness”) and (b) such Loan Party is truly and justly indebted to
the Lenders and the Administrative Agent for, or (except in the case of the
Canadian Borrower) has provided a guaranty for the benefit of the Lenders and
the Administrative Agent with respect to, such Outstanding Indebtedness without
defense, counterclaim or offset of any kind, and such Loan Party ratifies and
reaffirms the validity, enforceability and binding nature of the Obligations
and such Outstanding Indebtedness.  The
foregoing amounts do not include other fees, expenses and other amounts which
are chargeable or otherwise reimbursable under the Prepetition Loan
Documents.  None of the Loan Parties has
any rights of offset, defenses, claims or counterclaims with respect to any of
the Obligations and each of the Loan Parties (other than the Canadian Borrower)
are jointly and severally obligated with respect thereto, in each case in
accordance with the terms of the applicable Prepetition Loan Documents.  Each Loan Party (including the Canadian
Borrower) agrees and acknowledges that Default Interest shall accrue at all
times while the Specified Events of Default are continuing, including while
this Agreement is in effect.

 

Section 1.3.  Collateral.  Each Loan Party ratifies and reaffirms the
validity and enforceability (without defense, counterclaim or offset of any
kind) of the Liens granted to secure any of the Obligations and Outstanding
Indebtedness by such Loan Party to the 

 

(1) SCHEDULE
TO BE DISTRIBUTED BY DEUTSCHE BANK.

 

6

 

Administrative
Agent, for the benefit of the Lenders, pursuant to the Collateral Documents to
which such Loan Party is a party.  Each
Loan Party acknowledges and agrees that all such Liens granted by such Loan
Party shall continue to secure the Obligations and the Outstanding Indebtedness
from and after the date of this Agreement. 
Each Loan Party hereby represents and warrants to the Administrative
Agent and the Lenders that, pursuant to the Collateral Documents to which such
Loan Party is a party, the Obligations and the Outstanding Indebtedness are
secured by Liens on all of such Loan Party’s assets to the extent required by
the Collateral Documents.

 

Section 1.4.  Termination of Commitments.  Each Loan Party acknowledges and agrees that
the Specified Events of Default have occurred, certain are continuing and
certain may occur in the future.  As a
consequence, the Specified Senior Lenders have instructed the Administrative
Agent to terminate the Commitments of the Lenders in their entirety, effective
as of the Petition Filing Date.

 

Section 1.5.  Payments Assumed To Be Due.  Notwithstanding that the Lenders have not
previously exercised their rights to accelerate obligations, for purposes of
determining the rights and claims of the Lenders in the cases commenced by the
Bankruptcy Filings, the obligations of the Debtors under the Prepetition Loan
Documents, whether fixed or contingent, shall be deemed, without the necessity
of any further action or notice, due and payable in full.

 

Section 1.6.  Events of Default.  Each Loan Party (a) acknowledges and
agrees that the Scheduled Defaults, the Additional Default and the Technical
Default have occurred and are continuing and are in full force and effect, (ii) acknowledges
and agrees that the Specified Events of Default have occurred (it being
understood that the Technical Default has been cured) and may or will occur
from and after the Petition Filing Date and (iii) represents and warrants
to the Administrative Agent and the Lenders that no Default or Event of Default
(other than the Specified Events of Default) has occurred and continues to
exist as of the Effective Date (as defined below) and (b) absent the
agreement of the Lenders to enter into the forbearances as provided in this
Agreement, the Administrative Agent and the Lenders would be entitled, during
the continuance of such Specified Events of Default, at any time to take any
and all Enforcement Actions.

 

ARTICLE II

 

Forbearance;
Reservation of Rights

 

Section 2.1.  Forbearance.  Subject to the terms and conditions set forth
herein, including, without limitation, Sections 1.4, 1.5 and 1.6, each of
the Specified Senior Lenders hereby agrees on its behalf and on behalf of its
successors and assigns that, prior to the Forbearance Termination Date with
respect to such Specified Senior Lender, it shall not exercise or instruct the
exercise of, and hereby instructs the Administrative Agent not to exercise, any
of the following remedies:

 

(a)           Exercise
of foreclosure or similar remedies (including, without limitation, any rights
of a secured creditor under the PPSA, BIA or UCC) in respect of collateral of

 

7

 

the Canadian Borrower, to the extent securing
obligations of the Canadian Borrower under the Prepetition Loan Documents;
and/or

 

(b)           Exercise
of any other remedy under the Prepetition Loan Documents against the Canadian
Borrower occurring solely by reason of the occurrence of a Specified Event of
Default,

 

provided, however, that none of the
foregoing shall restrict any Specified Senior Lender party to a Bank Hedge
Agreement with any Debtor from designating an Early Termination Date (as
defined in such Bank Hedge Agreement) as a result of any of the Specified
Events of Default.

 

Section 2.2.  Reservation of Rights.  Subject to the terms and conditions set forth
herein and except as specifically contemplated by Section 2.1, each of the
Specified Senior Lenders hereby reserves all of its rights, remedies, powers
and privileges under the Senior Prepetition Credit Agreement, the other
Prepetition Loan Documents, any applicable law and equity and does not waive,
or agree to forbear from exercising any remedies with respect to,  any Default or Event of Default which may
currently or hereafter exist that is not a Specified Event of Default.  This Section 2.2 shall survive the
Forbearance Termination Date with respect to each Specified Senior Lender until
the termination of the Prepetition Loan Documents and the indefeasible payment
in full in cash of all obligations of the Loan Parties under or in respect of
the Senior Prepetition Credit Agreement and the other Prepetition Loan
Documents and all other amounts owing thereunder.

 

ARTICLE III

 

Conditions
Precedent to Effectiveness of 

Fourth Amendment and Canadian Forbearance Agreement

 

Section 3.1.  This Agreement shall become effective as of
the date (the “Effective Date”) on which all of the following conditions
have first been satisfied or waived:

 

(a)           Execution
and Delivery.  The U.S. Borrower, the
Canadian Borrower and each other Loan Party and each of the Specified Senior
Lenders listed on Schedule I shall have duly executed counterparts of this
Agreement (whether the same or different counterparts) and shall have delivered
(including by way of facsimile or other electronic (i.e., “pdf”) transmission)
the same to White & Case LLP, 1155 Avenue of the Americas, New York,
NY 10036, Attention: Po Saidi (facsimile number: 212-354-8113 / e-mail address:
psaidi@whitecase.com).

 

(b)           No
Default.  After giving effect to this
Agreement, there shall be no Default or Event of Default (other than the
Specified Events of Default).

 

(c)           Fees
and Expenses.  The Administrative
Agent shall have received all invoiced fees and accrued expenses of the
Administrative Agent and the ad-hoc steering committee comprised of certain
Lenders identified to the U.S. Borrower (the “Steering Committee”)
required to be paid by the Borrowers, including, without limitation, the
reasonable fees and expenses of one principal legal counsel and one local
counsel for each of Canada and Delaware to the Administrative Agent and the
Steering Committee

 

8

 

and the reasonable fees and expenses of any financial
adviser appointed and retained under Section 6.1 (Financial
Advisor).

 

Section 3.2.  This Agreement shall become effective as to
each other Lender that becomes a party hereto, upon delivery to the Company of
a joinder in the form of Annex I hereto.

 

ARTICLE IV

 

Forbearance
Termination Events

 

Section 4.1.  The agreement of the Specified Senior Lenders
to forbear from exercising certain remedies against the Canadian Borrower
pursuant to this Agreement shall immediately terminate upon the election of a
majority in interest of the Specified Senior Lenders and be of no further force
and effect immediately after such election at any time after the occurrence of
any of the following (the date of such election by the Specified Senior
Lenders, the “Forbearance Termination Date”):

 

(a)           the
occurrence of the “Termination Date” as defined in the DIP Credit Agreement;

 

(b)           the
occurrence and the continuation of an “Event of Default” as defined in the DIP
Credit Agreement;

 

(c)           the
occurrence and continuation of an Event of Default other than a Specified Event
of Default;

 

(d)           the
Administrative Agent’s receipt from the U.S. Borrower of a Senior Subordinated
Notes Payment Notice or the making of any payment (including a Senior
Subordinated Note Interest Payment) on any Subordinated Debt by any Loan Party;

 

(e)           any
Loan Party shall make any payment to or for the benefit of the trustee, agent
or any of the holders of the Senior Subordinated Notes under the Subordinated
Notes Indenture or any other Subordinated Debt under any other Subordinated
Debt Document in the form of a consent fee, waiver fee or forbearance fee, or
otherwise (other than (x) fees and expenses payable to legal and financial
advisors which a Loan Party is contractually obligated to reimburse as of the
Effective Date and (y) trustee and similar fees and expenses payable to
the trustee under the Subordinated Notes Indenture and any other Subordinated
Debt Document (in its capacity as such) in accordance with the terms of
thereof), without the express written consent of the Majority Lenders;

 

(f)            the
failure to comply with the Canadian Borrower Forbearance Condition;

 

(g)           the
Milestone Termination Date;

 

(h)           any
filing or action by the Debtors in the Debtors’ bankruptcy cases, or the second
Business Day following any decision by the Bankruptcy Court, in each case that
is materially adverse to the interests of the Specified Senior Lenders other
than as

 

9

 

explicitly set forth in the Restructuring
Support Lockup Agreements, as defined in the DIP Credit Agreement;

 

(i)            failure
of any Loan Party to perform, as and when required, any of the covenants or
other obligations applying to it set forth in this Agreement, including without
limitation, any provision of Section 6 below; or

 

(j)            any
Loan Party shall take any action to challenge (including without limitation, to
assert in writing any challenge to) the validity or enforceability of this
Agreement or any other Prepetition Loan Document or any provision hereof or
thereof.

 

ARTICLE V

 

Absence of
Waiver

 

Section 5.1.  No Waiver, Forbearance or Other Obligation
Assumed.  The parties hereto agree
that the agreements set forth in Articles I and II hereof shall not be deemed
to:

 

(a)           be
a consent to, or waiver of, or an agreement to waive any rights or remedies
against the Canadian Borrower in respect of, any Default or Event of Default or
any “event of default” (however styled) under any Prepetition Loan Document or
any other instrument governing indebtedness of any Loan Party;

 

(b)           except
as specifically contemplated by Section 2.1 or Section 2.2 with
respect to Specified Events of Default, be a consent to, or waiver of, or an
agreement to forbear from exercising foreclosure or the remedies against the
Canadian Borrower in respect of, any Default or Event of Default or any “event
of default” (however styled) under any Prepetition Loan Document or any other
instrument governing indebtedness of any Loan Party;

 

(c)           modify
or limit any other term or condition of the Senior Prepetition Credit Agreement
or any other Prepetition Loan Document or any related documents;

 

(d)           impose
upon any Specified Senior Lender or any Lender or any affiliate thereof, any
obligation, express or implied, to consent to any waiver, amendment or
modification of the Senior Prepetition Credit Agreement or other Prepetition
Loan Document or any related documents, including, without limitation, any
further extension of any Commitment or any commitment under any related
documents;

 

(e)           impose
upon any Specified Senior Lender any obligation, express or implied, to
continue to forbear from exercising its rights and remedies in accordance with Article II
with respect to any Specified Event of Default after the Forbearance
Termination Date with respect to such Specified Senior Lender; or

 

(f)            except
as otherwise expressly provided in Articles I and II, prejudice any right or
remedy that any Specified Senior Lender or Lender or any affiliate thereof, may
now have or may in the future have under the Senior Prepetition Credit
Agreement or under or in connection with the other Prepetition Loan Documents
or any instrument or 

 

10

 

agreement referred to therein or any
related documents including, without limitation, any right or remedy resulting
from any Default or Event of Default or any “event of default” (however
styled).

 

Section 5.2.  Limitation on Forbearance Extension.  None of the Lenders or the Administrative
Agent shall have any obligation to extend the Forbearance Period, or enter into
any other waiver, forbearance or amendment, and the Lenders’ and the
Administrative Agent’s agreement to permit any such extension, or enter into
any other waiver, forbearance or amendment shall be subject to the sole
discretion of the Majority Lenders (or, if required by Senior Prepetition
Credit Agreement, the Majority Facility Lenders, or each “affected” Lender or,
in every other case, each Lender required thereby).  Any agreement by any Lender or the
Administrative Agent to extend the Forbearance Period, if any, or enter into any
other waiver, forbearance or amendment, must be set forth in writing and signed
by a duly authorized signatory of the Administrative Agent and the Majority
Lenders (or, if required by the Senior Prepetition Credit Agreement, the
Majority Facility Lenders, or each “affected” Lender or, in every other case,
each Lender required thereby).  Each Loan
Party acknowledges that the Lenders and the Administrative Agent have not made
any assurances concerning any possibility of an extension of the Forbearance
Period or the entering into of any waiver, forbearance or amendment.

 

Section 5.3.  Limitation on Extensions of Credit.  Each Loan Party acknowledges and agrees that
no additional Advances or other financial accommodation under the Senior
Prepetition Credit Agreement shall be made by the Lenders (including the
Issuing Banks) to any Loan Party nor shall any Issuing Bank be obligated in
respect of any renewal, extension or amendment of Letters of Credit; provided
that the aggregate face amount of the Letters of Credit shall not increase
after giving effect to such renewal, extension or amendment to the extent any
Issuing Bank agrees to any such renewal, extension or amendment. In addition,
prior to the Forbearance Termination Date, no Borrower shall request, or seek
to enforce, the funding of any Advances by any Defaulting Lender or any
successor or assignee thereof.

 

Section 5.4.  Survival.  The provisions of this Article V shall
survive the Forbearance Termination Date with respect to each Specified Senior
Lender until the termination of the Prepetition Loan Documents and the payment
in full of all obligations of the Loan Parties under or in respect of the
Senior Prepetition Credit Agreement and the other Prepetition Loan Documents
and all other amounts owing thereunder.

 

Section 5.5.  Enforcement Actions after the Forbearance
Termination Date.  Each Loan Party
acknowledges and agrees that, on the Forbearance Termination Date, if any
Specified Event of Default has occurred and is continuing at such time, the
Administrative Agent and the Lenders shall be entitled to immediately take
Enforcement Actions under the Senior Prepetition Credit Agreement, the other
Prepetition Loan Documents, applicable law and in equity, all without further
notice or demand, in respect of the Specified Events of Default, or any other
Event of Default, then existing.

 

11

 

ARTICLE VI

 

Agreements

 

To induce the Specified Senior Lenders to
enter into this Agreement, the Borrowers, the other Loan Parties and the
Lenders agree as follows:

 

Section 6.1.  Financial Advisor.  The Administrative Agent or the Steering
Committee shall, on behalf of the Lenders, have the right to continue to retain
or to cause its counsel to continue to retain for its benefit a restructuring
or financial advisor to assist with the coordination and consummation of a
potential amendment to or restructuring of the Senior Prepetition Credit
Agreement, and the U.S. Borrower shall be liable for all costs and expenses
incurred by the Administrative Agent or the Steering Committee, as applicable,
with respect to such restructuring or financial advisor.  In connection with such retention, the U.S.
Borrower shall maintain in full force and effect the previously executed
engagement-related agreement with such restructuring or financial advisor,
which includes an agreement by the U.S. Borrower to be directly responsible for
the fees of such restructuring or other financial advisor, to pay such fees
promptly upon being invoiced therefor and to use its commercially reasonable
efforts to cooperate, and to cause its own advisors and its Subsidiaries to
cooperate with such restructuring or other financial advisor in the performance
of its duties as an advisor in accordance with such engagement-related
agreement.

 

Section 6.2.  Minimum Liquidity.  The Canadian Borrower shall not at any time
permit (a) cash and Cash Equivalents held in a Perfected Account to be
less than $1,500,000 or (b) average cash and Cash Equivalents held in a
Perfected Account for five consecutive Business Days to be less than
$2,000,000.

 

Section 6.3.  Financial Reporting Information.

 

The U.S. Borrower shall deliver to the
Administrative Agent, the Steering Committee and the Canadian Lenders copies of
all information required to be delivered under Section 5.03 (Financial Reporting Requirements) of the
DIP Credit Agreement; provided that, at any time prior to the Forbearance
Termination Date when the DIP Credit Agreement is not in effect, the U.S.
Borrower shall continue to deliver to the Administrative Agent and the Steering
Committee, on Thursday (or the immediately succeeding Business Day if Thursday is
not a Business Day) of each week, (a) a 13-week cash flow forecast in the
form of such forecast delivered to the Steering Committee under the terms of
the Third Temporary Waiver Agreement or another form reasonably satisfactory to
the Steering Committee (the “13-Week Cash Flow Forecast”), (b) a
reconciliation of the cash balances of the U.S. Borrower and its Subsidiaries
between the amount shown on the U.S. Borrower’s general ledger for the prior
week and the amount maintained on deposit for such week by the U.S. Borrower
and its Subsidiaries with banks, (c) a variance report (i) showing on
a line item basis the percentage and dollar variance of actual cash
disbursements and revenues and cash receipts for the prior week from the
amounts set forth for such week in the most recent 13-Week Cash Flow Forecast
and (ii) containing explanations of material variances from such 13-Week
Cash Flow Forecast, (d) a certificate, in a form satisfactory to the
Steering Committee, of a Responsible Officer of the U.S. Borrower as to the
calculation of Liquidity for the prior week and attaching forth such
calculations and (e) the

 

12

 

weekly flash
information provided to the U.S. Borrower’s Board of Directors for such week.  Each delivery of the 13-Week Cash Flow
Forecast shall be deemed to be a representation by the U.S. Borrower that such
13-Week Cash Flow Forecast has been prepared based upon good faith estimates
and assumptions that the U.S. Borrower believes were reasonable at the time
made (it being understood and agreed that such 13-Week Cash Flow Forecast is
not to be viewed as fact and that actual results during the period or periods
covered thereby may differ from such projected results).

 

Section 6.4.  Weekly Updates

 

If requested by the Administrative Agent or
the Steering Committee, any or all of the Specified Senior Lenders shall have
the right to receive an update (via meeting or conference call with the U.S.
Borrower’s senior management and/or its advisors) on the weekly information
provided to the Board of Directors, the ongoing financial performance,
operations and liquidity of the U.S. Borrower and its Subsidiaries and the
progress toward a proposal for an amendment to or restructuring of the
Obligations under the Senior Prepetition Credit Agreement and the Senior
Subordinated Notes, provided that this right shall be exercised by the
Specified Senior Lenders simultaneously with, and on the same dates, times and
other terms in which the Administrative Agent shall exercise such right
pursuant to the last sentence of Section 5.01(f) of the DIP Credit
Agreement.

 

Section 6.5.  FAS 159.  Notwithstanding any other provision contained
herein or in any other Prepetition Loan Document, all terms of an accounting or
financial nature used herein or in any other Prepetition Loan Document shall be
construed, and all computations of amounts and ratios referred to herein or in
any other Prepetition Loan Document shall be made at all times hereafter,
without giving effect to any election under Statement of Financial Accounting
Standards 159 (or any other Financial Accounting Standard having a similar
result or effect) to value any Indebtedness or other liabilities of  any Loan Party or any Subsidiary of any Loan
Party at “fair value”, as defined therein.

 

Section 6.6.  Conversion of Advances.  Notwithstanding anything to the contrary in
the Prepetition Loan Documents, from and after the Effective Date, (a) if,
on any date, the per annum interest rate applicable to Base Rate Advances is
lower than the per annum interest rate applicable to Eurodollar Rate Advances
requested on such date and having an Interest Period of one month, such Base
Rate Advances shall, on the third Business Day following such date, be
converted into Eurodollar Rate Advances having an Interest Period of one month,
and (b) subject to clause (a) above, on the last day of the then
existing Interest Period therefor each Eurodollar Rate Advance will, at the
option of the Canadian Borrower either continue as a Eurodollar Rate Advance
having an Interest Period of one month or Convert to a Base Rate Advance, and (c) the
obligation of the Lenders to Convert or continue Advances into Eurodollar Rate
Advances having an Interest Period of longer than one month shall be suspended.

 

Section 6.7.  Notice of Payment of Interest on Senior
Subordinated Notes.

 

The U.S. Borrower shall provide the Administrative Agent with at least
five (5) Business Days prior written notice (a “Senior Subordinated
Notes Payment Notice”) of its intention to make the Senior Subordinated
Notes Interest Payment.

 

13

 

Section 6.8.  Senior Subordinated Notes Forbearance;
Most Favored Nation Protection.

 

(A)          No property has been paid or will be
payable to the holders of the Senior Subordinated Notes in connection with any
amendments, waivers or forbearances (or any extension thereof) currently or
hereinafter in existence.

 

(B)           If the terms of any amendment, waiver or forbearance
imposes any more onerous restriction or covenant on  the U.S. Borrower or any of its Subsidiaries
under or in respect of the Senior Subordinated Notes (each an “Additional
Restriction”) then:

 

(i)            the U.S. Borrower shall, and will
cause each of the other Loan Parties to, enter into such documentation as the
Administrative Agent may require in order to modify the terms of this Agreement
and each other Prepetition Loan Document in order to give effect to an
obligation on the part of the U.S. Borrower or such other Loan Party to comply
with the terms of any such Additional Restriction; and

 

(ii)           from and with effect from the date of
imposition of such Additional Restriction, automatically and without the need
for any further action by or on the part of the Administrative Agent, any
Lender or any Loan Party and notwithstanding the occurrence of any Event of
Default under Section 7.01 of the Senior Prepetition Credit Agreement with
respect to any Loan Party, the U.S. Borrower or the applicable Loan Party shall
be obliged to comply with the terms of such Additional Restriction as if it had
been duly incorporated as an obligation in the Prepetition Loan Documents.

 

Section 6.9.  Amendment to Credit Agreement.  The Senior Prepetition Credit Agreement is
hereby amended by deleting the term “Base Rate” set forth in Section 1.01
thereof, and inserting the following definition in its place:

 

“Base Rate” means, for any day, a
rate per annum equal to the greatest of (a) the Prime Rate in effect on
such day, (b) the Federal Funds Effective Rate in effect on such day plus
1⁄2 of 1% and (c) the Eurodollar Rate for a Eurodollar Rate Advance
denominated in U.S. dollars with a one-month interest period commencing on such
day plus 1.0%. For purposes of clause (c) of this definition, the
Eurodollar Rate shall be determined using the Eurodollar Rate as otherwise
determined by the Administrative Agent in accordance with the definition of
Eurodollar Rate, except that (x) if a given day is a Business Day, such
determination shall be made on such day (rather than on the second Business Day
prior to the first day of an Interest Period) or (y) if a given day is not
a Business Day, the Eurodollar Rate for such day shall be the rate determined
by the Administrative Agent pursuant to preceding clause (x) for the most
recent Business Day preceding such day; provided that the determination of the
Eurodollar Rate shall disregard (A) the rounding requirement set forth in
the definition of Eurodollar Rate and (B) the last sentence of such
definition.

 

14

 

ARTICLE VII

 

Miscellaneous

 

Section 7.1.  Representations and Warranties.  In order to induce the Lenders to enter into
this Agreement, the Borrowers and the other Loan Parties hereby represent and
warrant to the Lenders that:

 

(a)           This
Agreement has been duly authorized by all necessary action of such entity, duly
executed and delivered by such entity and constitutes a legal, valid and
binding obligation of the Borrowers and each Loan Party, as applicable,
enforceable against each such entity respectively in accordance with its terms,
subject to applicable bankruptcy, insolvency, reorganization, moratorium or
other laws affecting creditors’ rights generally and subject to general
principles of equity, regardless of whether considered in a proceeding in
equity or at law; and

 

(b)           All
of the representations and warranties of each Loan Party contained in the
Senior Prepetition Credit Agreement or the other Prepetition Loan Documents are
true and correct in all material respects on the Effective Date (except with
respect to or as may be affected by the Specified Event of Defaults, with the
same effect as though such representations and warranties had been made on and
as of the Effective Date (it being understood that any representation or warranty
made as of a specific date shall be true and correct in all material respects
as of such specific date)).

 

Section 7.2.  Consent of Loan Parties. Each of the
Loan Parties hereby consents to this Agreement. 
Each of the parties hereto agrees that this Agreement shall constitute a
Prepetition Loan Document. Furthermore, the Canadian Borrower, by its execution
hereof, acknowledges that its Affiliates have entered into, and consents to the
terms of, the DIP Loan Documents and the facility provided thereunder.

 

Section 7.3.  Release.  In further consideration of the execution by
the Administrative Agent and by each of the Lenders that are (or become party
to) this Agreement (the “Lender Parties”), of this Agreement, each
Borrower for itself and on behalf of its successors, assigns, Subsidiaries and
Affiliates (the “Releasing Parties”), hereby forever releases the
Administrative Agent and the Lender Parties (other than any Defaulting Lender)
and their successors, assigns, parents, Subsidiaries, Affiliates, officers,
employees, directors, agents and attorneys (collectively, the “Released
Parties”) from any and all debts, claims, demands, liabilities,
responsibilities, disputes, causes, damages, actions and causes of action
(whether at law or in equity) and obligations of every nature whatsoever,
whether liquidated or unliquidated, known or unknown, matured or unmatured,
fixed or contingent, that any Releasing Party may have against the Released
Parties that arise from or relate to any actions which the Released Parties may
have taken or omitted to take prior to the date hereof, in each case with
respect to, arising out of, or related to the Obligations (including the
Outstanding Indebtedness), any Collateral, the Senior Prepetition Credit
Agreement, any other Prepetition Loan Document and any third parties liable in
whole or in part for the Obligations (including the Outstanding Indebtedness)
(the “Released Matters”). Each Releasing Party acknowledges that the
agreements in this Section 7.3 are intended to be in full satisfaction of
all or any alleged injuries or damages

 

15

 

arising in
connection with the Released Matters and constitute a complete waiver of any
right of setoff or recoupment, counterclaim or defense of any nature whatsoever
which arose prior to the Effective Date to payment or performance of the
Obligations (including the Outstanding Indebtedness).  Each Releasing Party represents and warrants
that it has no knowledge of any claim by it against the Released Parties or of
any facts, or acts or omissions of the Released Parties which on the date
hereof would be the basis of a claim by the Releasing Parties against the
Released Parties which is not released hereby. 
Each Releasing Party represents and warrants that it has not purported
to transfer, assign, pledge or otherwise convey any of its right, title or
interest in any Released Matter to any other person or entity and that the
foregoing constitutes a full and complete release of all Released Matters.  The Releasing Parties have granted this
release freely, and voluntarily and without duress.

 

Section 7.4.  Section Headings.  Section headings used in this Agreement
are for convenience of reference only and shall not affect the construction of
this Agreement.

 

Section 7.5.  Counterparts.  This Agreement may be executed by one or more
of the parties hereto by portable document format or facsimile or in any number
of separate counterparts and all of said counterparts taken together shall be
deemed to constitute one and the same instrument.

 

Section 7.6.  Governing Law.  This Agreement and the rights and obligations
of the parties under this Agreement shall be governed by, and construed and
interpreted in accordance with, the law of the State of New York.

 

Section 7.7.  Jurisdiction.  Each party hereby irrevocably consents to the
non-exclusive personal jurisdiction of the courts of the state of New York
located in the County of New York and of the United States District Court for
the Southern District of New York located in the borough of Manhattan in any
action to enforce, interpret or construe any provision of this Agreement.

 

Section 7.8.  Waiver of Jury Trial.  The Loan Parties hereby waive their right to
a jury trial with respect to any action or claim arising out of any dispute in
connection with this Agreement, any rights or obligations hereunder, or the
performance of such rights and obligations. 
Except as prohibited by law, the Loan Parties hereby waive any right they
may have to claim or recover in any litigation referred to in the preceding
sentence any special, exemplary, punitive or consequential damages or any
damages other than, or in addition to, actual damages.  The Loan Parties (a) certify that no
representative, agent or attorney of any Specified Senior Lender has
represented, expressly or otherwise, that such Specified Senior Lender would
not, in the event of litigation, seek to enforce this Agreement or any related
document and (b) acknowledges that each Specified Senior Lender has been
induced to enter into this Agreement by, among other things, the
acknowledgments, release and representations of the Loan Parties contained
herein.

 

Section 7.9.  No Limitation on Obligations and Rights
under Applicable Law.  All
obligations of each Loan Party and all rights of the Specified Senior Lenders
that are expressed herein shall be in addition to and not in limitation of
those provided by applicable law.

 

16

 

Section 7.10.  Integration.  This Agreement, the Senior Prepetition Credit
Agreement, and the other Prepetition Loan Documents represent the agreement of
the Loan Parties party thereto and the Specified Senior Lenders with respect to
the subject matter hereof, and there are no promises, undertakings, representations
or warranties by any Specified Senior Lender relative to subject matter hereof
not expressly set forth or referred to herein or therein.

 

Section 7.11.  Severability.  Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid
under applicable law; but if any provision of this Agreement shall be
prohibited by or invalid under applicable law, such provision shall be
ineffective only to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of
this Agreement.

 

Section 7.12.  Survival.  The provisions of this Article VII
(except for the second sentence of Section 7.13) shall survive the
Forbearance Termination Date with respect to each Specified Senior Lender until
the termination of the Prepetition Loan Documents and the payment in full of
all obligations of the Loan Parties under or in respect of the Senior
Prepetition Credit Agreement and the other Prepetition Loan Documents and all
other amounts owing thereunder.

 

Section 7.13.  Successors and Assigns.  This Agreement shall be binding upon and
inure to the benefit of each of the parties hereto and their respective
successors and assigns.  Each of the
undersigned Specified Senior Lenders hereby agrees that it shall cause any
Assignee (as defined in the Senior Prepetition Credit Agreement) to which an
assignment is made prior to the Forbearance Termination Date with respect to
any such Specified Senior Lender to complete, sign and deliver to the U.S.
Borrower and the Canadian Borrower a joinder agreement substantially in the
form set forth in Annex I hereto.

 

[SIGNATURE PAGES FOLLOW]

 

17

 

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

 

 

	
   

  	
  ACCURIDE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen A. Martin

  
	
   

  	
   

  	
  Name: Stephen A. Martin

  
	
   

  	
   

  	
  Title: Vice President — General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ACCURIDE CANADA INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen A. Martin

  
	
   

  	
   

  	
  Name: Stephen A. Martin

  
	
   

  	
   

  	
  Title: Assistant Secretary

  

 

Signature Page to Fourth Amendment and Canadian
Forbearance Agreement

 

 

	
   

  	
   

  	
  ACCURIDE CUYAHOGA FALLS, INC.

  
	
   

  	
   

  	
  ACCURIDE DISTRIBUTING, LLC

  
	
   

  	
   

  	
  ACCURIDE EMI, LLC

  
	
   

  	
   

  	
  AOT INC.

  
	
   

  	
   

  	
  ERIE LAND HOLDING, INC.

  
	
   

  	
   

  	
  BOSTROM HOLDINGS, INC.

  
	
   

  	
   

  	
  BOSTROM SEATING, INC.

  
	
   

  	
   

  	
  BOSTROM SPECIALTY SEATING,
  INC.

  
	
   

  	
   

  	
  BRILLION IRON WORKS, INC.

  
	
   

  	
   

  	
  FABCO AUTOMOTIVE CORPORATION

  
	
   

  	
   

  	
  GUNITE CORPORATION

  
	
   

  	
   

  	
  IMPERIAL GROUP HOLDING CORP. - 1

  
	
   

  	
   

  	
  IMPERIAL GROUP HOLDING CORP. - 2

  
	
   

  	
   

  	
  JAII MANAGEMENT COMPANY

  
	
   

  	
   

  	
  TRANSPORTATION TECHNOLOGIES INDUSTRIES, INC.

  
	
   

  	
   

  	
  TRUCK COMPONENTS INC.,

  
	
   

  	
   

  	
  each as a Loan
  Party

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Stephen A. Martin

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Stephen A. Martin

  
	
   

  	
   

  	
   

  	
   

  	
  Title: Authorized Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ACCURIDE ERIE L.P.,

  
	
   

  	
   

  	
  as a Loan Party

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  AKW GENERAL PARTNER L.L.C.,

  
	
   

  	
   

  	
   

  	
  as General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  ACCURIDE CORPORATION,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  as Sole Member

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Stephen A. Martin

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name: Stephen A. Martin

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title: Vice President — General Counsel

  
									

 

Signature Page to Fourth Amendment and Canadian
Forbearance Agreement

 

 

	
   

  	
   

  	
  ACCURIDE HENDERSON LIMITED LIABILITY COMPANY

  
	
   

  	
   

  	
  AKW GENERAL
  PARTNER L.L.C.,

  
	
   

  	
   

  	
  each as a Loan
  Party

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  ACCURIDE
  CORPORATION,

  
	
   

  	
   

  	
   

  	
  as Sole Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Stephen A.
  Martin

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Stephen
  A. Martin

  
	
   

  	
   

  	
   

  	
   

  	
  Title: Vice President — General Counsel

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  IMPERIAL GROUP, L.P.,

  
	
   

  	
   

  	
  as a Loan Party

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  IMPERIAL GROUP
  HOLDING

  
	
   

  	
   

  	
   

  	
  CORP. - 1, its General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Stephen A. Martin

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Stephen A. Martin

  
	
   

  	
   

  	
   

  	
   

  	
  Title: Secretary

  
								

 

Signature Page to Fourth Amendment and Canadian
Forbearance Agreement

 

 

	
   

  	
  SIGNATURE PAGE TO THE FOURTH AMENDMENT AND CANADIAN FORBEARANCE
  AGREEMENT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ,

  
	
   

  	
   

  	
  as a Specified Senior Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  Dated as of the date first written above

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Holdings:

  	
   

  	
   

  
	
  Type of
  Loan:

  	
   

  	
   

  
	
  Principal
  Amount:

  	
   

  	
   

  
						

 

Signature Page to Fourth Amendment and Canadian
Forbearance Agreement

 

 

SCHEDULE I

TO

FOURTH AMENDMENT AND CANADIAN FORBEARANCE AGREEMENT

 

SPECIFIED SENIOR LENDERS

 

 

ANNEX I

FORM OF JOINDER TO FOURTH AMENDMENT AND
CANADIAN FORBEARANCE AGREEMENT

 

The undersigned,
[                                                      ],
(the “New Specified Lender”):

 

1.             agrees
to all of the provisions of the Fourth Amendment and Canadian Forbearance
Agreement (as renewed, extended, amended, or restated from time to time, the “Canadian
Forbearance Agreement”) dated as of October 8, 2009, among ACCURIDE
CORPORATION, a Delaware corporation (the “U.S. Borrower”), ACCURIDE
CANADA INC., a corporation organized and existing under the law of the Province
of Ontario (the “Canadian Borrower”, and, together with the U.S.
Borrower, the “Borrowers”), the Subsidiary Guarantors (defined therein,
and together with the Borrowers, the “Loan Parties”) and the Specified
Senior Lenders (defined therein) relating to the Senior Prepetition Credit
Agreement (as defined therein);

 

2.             effective
on the date hereof, becomes a party to the Canadian Forbearance Agreement, as
an additional Specified Senior Lender, with the same effect as if the
undersigned were an original signatory to the Canadian Forbearance Agreement;

 

Terms defined in the Canadian Forbearance
Agreement shall have such defined meanings when used herein.

 

Date:
[                    ]

 

 

By its acceptance hereof, the undersigned
New Specified Senior Lender hereby ratifies and confirms its obligations under
the Canadian Forbearance Agreement, as supplemented hereby.

 

 

	
   

  	
   

  	
  [                                          ],

  
	
   

  	
   

  	
   

  	
  as New Specified Senior Lender

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Holdings:

  	
   

  	
   

  
	
  Type of Loan:

  	
   

  	
   

  
	
  Principal
  Amount:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ACKNOWLEDGED AND AGREED:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ACCURIDE CORPORATION,

  
	
   

  	
   

  	
  on behalf of
  the Loan Parties

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

Joinder to Fourth Amendment and Canadian Forbearance Agreement

 

2

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