Document:

Exhibit
10.2

AMENDED AND RESTATED SECURITY AGREEMENT

THIS AMENDED AND RESTATED
SECURITY AGREEMENT (this “Security Agreement”) is entered into as of
June 15, 2007 among RED ROBIN INTERNATIONAL, INC., a Nevada
corporation (the “Borrower”), RED ROBIN GOURMET BURGERS, INC., a
Delaware corporation (the “Parent”), those Domestic Subsidiaries of the
Borrower as may from time to time become parties hereto (together with the
Parent, individually a “Guarantor”
and collectively the “Guarantors”; the Guarantors and the Borrower,
individually an “Obligor” and collectively the “Obligors”) and
WACHOVIA BANK, NATIONAL ASSOCIATION, in its capacity as administrative agent
(in such capacity, the “Administrative Agent”) for the lenders from time
to time party to the Credit Agreement described below (the “Lenders”).

RECITALS

WHEREAS,
pursuant to that certain Amended and Restated Credit Agreement dated as of
December 14, 2005 (as amended or modified, the “Existing Credit Agreement”),
among the Borrower, the Guarantors, the lenders party thereto, and the
Administrative Agent, the Lenders agreed to make loans and issue or participate
in letters of credit upon the terms and subject to the conditions set forth
therein;

WHEREAS,
pursuant to that certain Amended and Restated Credit Agreement dated as of the
date hereof (as amended, modified, extended, renewed, restated or replaced from
time to time, the “Credit Agreement”), among the Borrower, the
Guarantors, the Lenders party thereto, and the Administrative Agent, the
Lenders have agreed to refinance the Existing Credit Agreement and make Loans
and issue or participate in Letters of Credit upon the terms and subject to the
conditions set forth therein;

WHEREAS, in connection with the Existing Credit
Agreement, the Borrower and the Guarantors entered into that certain Amended
and Restated Security Agreement dated as of December 14, 2005 (as amended or
modified, the “Existing Security Agreement”); and

WHEREAS, it is a condition
precedent to the effectiveness of the Credit Agreement and the obligations of
the Lenders to make their respective Loans and to issue or participate in
Letters of Credit under the Credit Agreement that the Obligors shall have
executed and delivered this Security Agreement (which amends and restates the
Existing Security Agreement) to the Administrative Agent for the ratable
benefit of the Lenders.

NOW, THEREFORE, in consideration
of these premises and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

1.             Definitions.

(a)           Unless otherwise defined herein, capitalized
terms used herein shall have the meanings ascribed to such terms in the Credit
Agreement, and the following terms which

are
defined in the Uniform Commercial Code from time to time in effect in the State
of North Carolina (the “UCC”) are used herein as so defined: Accessions,
Accounts, As-Extracted Collateral, Chattel Paper, Commercial Tort Claims,
Consumer Goods, Control, Deposit Accounts, Documents, Electronic Chattel Paper,
Equipment, Farm Products, Fixtures, General Intangibles, Goods, Instruments,
Inventory, Investment Property, Letter-of-Credit Rights, Manufactured Homes,
Proceeds, Securities Intermediary, Security Entitlement, Software, Supporting
Obligations and Tangible Chattel Paper. 
For purposes of this Security Agreement, the term “Lender” shall include
any Hedging Agreement Provider.

(b)           In addition, the following terms shall have the
following meaning:

“Material”: shall mean, with respect to any item of Collateral
(or amount payable thereunder or in connection therewith with respect to
Accounts or similar obligations) qualified by the term “Material” in this
Security Agreement, that such item of Collateral (or such amount), when
aggregated with all other items of Collateral excluded because such items are
qualified by the term “Material,” has a fair market value in excess of $500,000
in the aggregate.

“Secured Obligations”: the collective reference to the
following:

(a)           all Credit Party Obligations (including obligations
under Secured Hedging Agreements), howsoever evidenced, created, incurred or
acquired, whether primary, secondary, direct, contingent, or joint and several;
and

(b)           all reasonable expenses and charges, legal and
otherwise, incurred by the Administrative Agent and/or the Lenders and/or the
Hedging Agreement Providers in collecting or enforcing any Credit Party
Obligation or in realizing on or protecting any security therefor, including
without limitation, the security granted hereunder.

“Vehicles”: shall mean all cars, trucks, vans, trailers,
construction and earth moving equipment and other vehicles covered by a
certificate of title law of any state, including, without limitation, all tires
and other appurtenances to any of the foregoing.

2.             Grant of Security Interest in the Collateral.  To
secure the prompt payment and performance in full when due, whether by lapse of
time, acceleration, mandatory prepayment or otherwise, of the Secured
Obligations, each Obligor hereby grants to the Administrative Agent, for the
ratable benefit of the Lenders, a continuing security interest in, and a right
to set off against, any and all right, title and interest of such Obligor in
and to the following, whether now owned or existing or owned, acquired, or
arising hereafter (collectively, the “Collateral”):

(a)           all Accounts;

(b)           all cash and Cash Equivalents;

(c)           all Chattel Paper (including Electronic Chattel
Paper);

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(d)           those certain
Commercial Tort Claims of such Obligor set forth on Schedule 2(d)
attached hereto (as such Schedule may be updated from time to time by the
Obligors);

(e)           all Copyright Licenses;

(f)            all Copyrights;

(g)           all Deposit Accounts;

(h)           all Documents;

(i)            all Equipment;

(j)            all Fixtures;

(k)           all General Intangibles;

(l)            all Goods;

(m)          all Instruments;

(n)           all Inventory;

(o)           all Investment Property;

(p)           all Letter-of-Credit Rights;

(q)           all Material Contracts
and all such other agreements, contracts, leases, licenses, tax sharing
agreements or hedging arrangements now or hereafter entered into by an Obligor,
as such agreements may be amended or otherwise modified from time to time
(collectively, the “Assigned Agreements”), including without limitation, (i)
all rights of an Obligor to receive moneys due and to become due under or
pursuant to the Assigned Agreements, (ii) all rights of an Obligor to receive
proceeds of any insurance, indemnity, warranty or guaranty with respect to the
Assigned Agreements, (iii) claims of an Obligor for damages arising out of or
for breach of or default under the Assigned Agreements and (iv) the right of an
Obligor to terminate the Assigned Agreements, to perform thereunder and to
compel performance and otherwise exercise all remedies thereunder;

(r)            all Payment
Intangibles;

(s)           all Patent Licenses;

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(t)            all Patents;

(u)           all Software;

(v)           all Supporting Obligations;

(w)          all Trademark Licenses;

(x)            all Trademarks;

(y)           all books, records, ledger cards, files,
correspondence, computer programs, tapes, disks, and related data processing
software (owned by such Obligor or in which it has an interest) that at any
time evidence or contain information relating to any Collateral or are
otherwise necessary or helpful in the collection thereof or realization
thereupon;

(z)            to the extent not otherwise included, all,
Accessions, Proceeds and products of any and all of the foregoing; and

(aa)         all other assets of such Obligor.

Notwithstanding the foregoing, “Collateral”
shall not include (i) Deposit Accounts that consist of, contain or include
money deposited by franchisees to the extent the Credit Parties do not have
money deposited in such accounts exceeding $500,000 in the aggregate, (ii)
shares of Capital Stock of any Foreign Subsidiary in excess of 65% of the total
shares of outstanding Capital Stock of such Foreign Subsidiary to the extent
that a pledge of, or lien on, such shares would result in adverse tax
consequences for any Obligor, or (iii) any “Excluded Property” (as defined
below) until such time, if any, as the prohibitions causing such property to be
Excluded Property have terminated (howsoever occurring).  Upon such termination, the Administrative
Agent will be deemed to have and at all times from and after the date hereof to
have had, a security interest in such Excluded Property and the relevant
Obligor shall take all actions necessary in the reasonable judgment of the
Administrative Agent to perfect such security interest.  The term “Excluded Property” means
(a) any permit, lease, license, agreement, contract or other General
Intangible of any Obligor that validly prohibits the creation by such Obligor
of a security interest therein which was entered into prior to the date hereof
(to the extent such prohibition is not invalidated under the UCC) and
(b) any permit, lease, license, agreement, contract or other General Intangible
of such Obligor to the extent that any Requirement of Law applicable thereto
prohibits the creation by such Obligor of a security interest therein, in each
case other than (i) the right to receive any payment of money due in
respect of such permit, lease, license, agreement, contract or other General
Intangible and (ii) any Accessions, Proceeds or products of any such
permit, lease, license, agreement, contract or other General Intangible (unless
such Accessions, Proceeds or products would itself constitute Excluded
Property).

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The Obligors and the
Administrative Agent, on behalf of the Lenders, hereby acknowledge and agree
that the security interest created hereby in the Collateral (i) constitutes
continuing collateral security for all of the Secured Obligations, whether now
existing or hereafter arising and (ii) is not to be construed as an assignment
of any Intellectual Property.

The term “Collateral” shall
include any Secured Hedging Agreement and any rights of the Obligors thereunder
only for purposes of this Section 2.

3.             Provisions Relating to Accounts, Material
Contracts and Assigned Agreements.

(a)           Anything herein to the contrary notwithstanding, each of the Obligors
shall remain liable under each of its Accounts, Material Contracts and Assigned
Agreements to observe and perform all the conditions and obligations to be
observed and performed by it thereunder, all in accordance with the terms of
any agreement giving rise to each such Account or the terms of such Material
Contracts and Assigned Agreements. 
Neither the Administrative Agent nor any Lender shall have any
obligation or liability under any Account (or any agreement giving rise
thereto), Material Contract or Assigned Agreement by reason of or arising out
of this Security Agreement or the receipt by the Administrative Agent or any
Lender of any payment relating to such Account, Material Contract or Assigned
Agreement pursuant hereto, nor shall the Administrative Agent or any Lender be
obligated in any manner to perform any of the obligations of an Obligor under
or pursuant to any Account (or any agreement giving rise thereto), Material
Contract or Assigned Agreement, to make any payment, to make any inquiry as to
the nature or the sufficiency of any payment received by it or as to the sufficiency
of any performance by any party under any Account (or any agreement giving rise
thereto), Material Contract or Assigned Agreement, to present or file any
claim, to take any action to enforce any performance or to collect the payment
of any amounts which may have been assigned to it or to which it may be
entitled at any time or times.

(b)           At any time and from time to time, the
Administrative Agent shall have the right, but not the obligation, to make test
verifications of the Accounts in any manner and through any medium that it
reasonably considers advisable, and the Obligors shall furnish all such
assistance and information as the Administrative Agent may reasonably require
in connection with such test verifications. 
At any time upon the occurrence and during the continuation of a Default
or Event of Default upon the Administrative Agent’s request and at the expense
of the Obligors, the Obligors shall cause independent public accountants or
others satisfactory to the Administrative Agent to furnish to the
Administrative Agent reports showing reconciliations, aging and test
verifications of, and trial balances for, the Accounts.  The Administrative Agent in its own name or
in the name of others may communicate with account debtors on the Accounts to
verify with them to the Administrative Agent’s satisfaction the existence,
amount and terms of any Accounts.

4.             Representations and Warranties.  Each
Obligor hereby represents and warrants to the Administrative Agent, for the
benefit of the Lenders, that so long as any of the Secured Obligations remain
outstanding (other than contingent indemnity obligations which by the terms

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thereof are stated to survive termination of the Credit
Documents) or any Credit Document or Secured Hedging Agreement is in effect, and
until all of the Commitments shall have been terminated:

(a)           Chief Executive
Office; Books & Records; Legal Name; State of Formation.  As of the Closing Date, each Obligor’s chief
executive office and chief place of business are (and for the prior four months
prior to the date hereof has been) located at the locations set forth on Schedule
3.19(c) to the Credit Agreement (as updated from time to time), and as of
the Closing Date each Obligor keeps its books and records at such
locations.  As of the Closing Date, each
Obligor’s exact legal name is as shown in this Security Agreement and its state
of formation is (and for the prior four months prior to the date hereof has
been) the location set forth on Schedule 3.12 to the Credit
Agreement.  No Obligor has in the past
four months prior to the date hereof changed its name, been party to a merger,
consolidation or other change in structure or used any tradename not disclosed
on Schedule 4(a) attached hereto (as updated from time to time in
accordance with Section 5(d)).

(b)           Location of Collateral.  As of
the Closing Date, the tangible Collateral owned by each Obligor is located
solely at the locations set forth on Schedule 3.19(b) to the Credit
Agreement (other than immaterial portions of Inventory and/or Equipment in
transit or held in warehouses, provided that such Inventory and/or Equipment
has a fair market value not in excess of $500,000 in the aggregate).

(c)           Ownership.  Each Obligor is the legal and
beneficial owner of its Collateral and has the right to pledge, sell, assign or
transfer the same except to the extent that any pledge, sale, assignment or
transfer of such Collateral is prohibited or limited by applicable law,
regulations or administrative guidelines or by any contract entered into prior
to the date hereof.

(d)           Security Interest/Priority.  This
Security Agreement creates a valid security interest in favor of the
Administrative Agent, for the benefit of the Lenders, in the Collateral of such
Obligor and, when properly perfected by filing, the granting of Control to the
Administrative Agent or otherwise, shall constitute a valid first priority,
perfected security interest in the Collateral with respect to which the
security interest is to be perfected, to the extent such security interest can
be perfected by filing or otherwise under the UCC or by filing an appropriate
notice with the United States Patent and Trademark Office or the United States
Copyright Office, free and clear of all Liens except for Permitted Liens.

(e)           Consents.  Except for (i) the filing or recording of UCC
financing statements, (ii) the filing of appropriate notices with the United
States Patent and Trademark Office and the United States Copyright Office or
(iii) obtaining Control to perfect the Liens created by this Security Agreement,
no consent or authorization of, filing with, or other act by or in respect of,
any arbitrator or Governmental Authority and no consent of any other Person
(including, without limitation, any stockholder, member or creditor of such
Obligor), is required under the UCC (i) for the grant by such Obligor of the

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security interest in the Collateral granted hereby or
for the execution, delivery or performance of this Security Agreement by such
Obligor or (ii) for the perfection of such security interest or the exercise by
the Administrative Agent of the rights and remedies provided for in this
Security Agreement.

(f)            Types of Collateral.  None of
the Collateral consists of, or is the Proceeds of, As-Extracted
Collateral, Consumer Goods, Farm Products, Manufactured
Homes or standing timber (as such term is used in the UCC).

(g)           Accounts.  With respect to the Accounts
of the Obligors:  (i) each Account and
the papers and documents of the applicable Obligor relating thereto are genuine
and in all material respects what they purport to be; (ii) each Account
arises out of a bona fide transaction for goods sold and delivered (or in the
process of being delivered) by an Obligor or for services actually rendered by
an Obligor, which transaction was conducted in the ordinary course of the
Obligor’s business and was or will be performed substantially in accordance
with the terms of any documents pertaining thereto; (iii) no Account of an
Obligor is evidenced by any Instrument or Chattel Paper unless such Instrument
or Chattel Paper has been theretofore delivered to, or submitted to the Control
of, the Administrative Agent; provided that this subsection (iii) is not
intended to (A) require the endorsement or delivery of ordinary course records
and payment instructions or (B) require the endorsement or delivery of any
individual Instrument or Chattel Paper in an amount of less than $500,000; (iv)
the amount of each Account as shown on the applicable Obligor’s books and
records, and on all invoices and statements which may be delivered to the
Administrative Agent with respect thereto, is payable to the applicable Obligor
and no material portion of the Accounts are contingent; (v) no Account is
evidenced by a judgment, there are no set-offs, counterclaims or disputes existing
or asserted with respect to any Account that in the aggregate could reasonably
be expected to have a Material Adverse Effect, and no Obligor has made any
agreement with any account debtor for any deduction from any Account except a
discount or allowance for prompt payment allowed by the applicable Obligor and
other discounts or allowances made in the ordinary course of its business; (vi)
there are no facts, events or occurrences which in any material respect impair
the validity or enforcement of any Material Account or could reasonably be
expected to materially reduce the amount payable thereunder as shown on the
applicable Obligor’s books and records and all invoices and statements
delivered to the Administrative Agent with respect thereto; (vii) the right to
receive payment under each Account is assignable except where the account
debtor with respect to such Account is the United States government or any
State government or any agency, department or instrumentality thereof, to the
extent the assignment of any such right to payment is prohibited or limited by
applicable law, regulations, administrative guidelines or contract; and (viii)
the goods sold and/or services furnished giving rise to each Account are not
subject to any security interest or Lien except the security interest granted
the Administrative Agent herein and except for Permitted Liens.

(h)           Inventory.  No Inventory of an Obligor is
held by a third party (other than an Obligor) pursuant to consignment, sale or
return, sale on approval or similar arrangement.

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(i)            Intellectual Property.

(i)            Schedule 3.16 to the Credit Agreement includes all Intellectual Property owned by
the Obligors in their own names, or that the Obligors have the right to use, as
of the Closing Date.

(ii)           Each Material Copyright, Material Patent and
Material Trademark owned by such Obligor is valid, subsisting, unexpired, and
to such Obligor’s knowledge, enforceable and has not been abandoned, and such
Obligor is legally entitled to use each of its tradenames.

(iii)          Except as
set forth in Schedule 3.16 to the Credit Agreement, none of the Material
Copyrights, Material Patents and Material Trademarks is the subject of any
licensing or franchise agreement other than for the benefit of any franchisee.

(iv)          No holding, decision or judgment has been
rendered by any Governmental Authority which would limit, cancel or question
the validity of any Material Intellectual Property of the Obligors.

(v)           No action or proceeding is pending seeking to
limit, cancel or question the validity of any Material Intellectual Property,
or which, if adversely determined, would have a material adverse effect on the
value of any Material Intellectual Property.

(vi)          All applications pertaining to the Material
Copyrights, Material Patents and Material Trademarks of each Obligor have been
duly and properly filed, and all registrations or letters pertaining to such
Copyrights, Patents and Trademarks have been duly and properly filed and
issued, and all of such Copyrights, Patents and Trademarks are valid and enforceable.

(vii)         No Obligor
has made any assignment or agreement in conflict with the security interest of
the Administrative Agent in the Material Intellectual Property of each Obligor
hereunder.

(j)            Documents, Instruments and Chattel Paper.  All
Documents, Instruments and Chattel Paper describing, evidencing or constituting
Collateral are, to the Obligors’ knowledge, complete in all material respects,
valid and genuine.

(k)           Equipment.  With respect to each Obligor’s
Equipment that is material to its business: 
(i) such Obligor has good and marketable title thereto or a valid
leasehold interest therein; and  (ii) all
such Equipment is in normal operating condition and repair, ordinary wear and
tear and obsolescence alone excepted (subject to casualty events), and is
suitable for the uses to which it is customarily put in the conduct of such
Obligor’s business.

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(l)            Restrictions on Security Interest.  None of
the Obligors is party to any material license (other than certain liquor
licenses) or any material personal property lease that contains legally
enforceable restrictions on the granting of a security interest therein.

(m)          Collateral Requiring Control to Perfect.  Set
forth on Schedule 4(m) is a description of all Deposit Accounts, Electronic
Chattel Paper, Letter of Credit Rights, Securities Accounts and uncertificated
Investment Property of the Obligors, including the name and address of (i) in
the case of a Deposit Account, the depository institution, (ii) in the case of
Electronic Chattel Paper, the account debtor, (iii) in the case of Letter of
Credit Rights, the issuer or nominated person, as applicable, and (iv) in the
case of a Securities Account or other uncertificated Investment Property, the
Securities Intermediary or issuer, as applicable.

5.             Covenants.  Each Obligor covenants that,
so long as any of the Secured Obligations remain outstanding (other than
contingent indemnity obligations which by the terms thereof are stated to
survive termination of the Credit Documents) or any Credit Document or Secured
Hedging Agreement is in effect, and until all of the Commitments shall have
been terminated, such Obligor shall:

(a)           Other Liens.  Defend its interests in the
Collateral against the claims and demands of all other parties claiming an
interest therein and keep the Collateral free from all Liens, except, in each
case, for Permitted Liens, and not sell, exchange, transfer, assign, lease or
otherwise dispose of the Collateral or any interest therein and, except as
permitted under the Credit Agreement and the other Credit Documents.

(b)           Preservation of Collateral.  Keep all
Material Collateral useful and necessary in its business in good order,
condition and repair, ordinary wear and tear and obsolescence excepted; not use
the Collateral in violation of the provisions of this Security Agreement or any
other agreement relating to the Collateral or any policy insuring the
Collateral or any applicable Requirement of Law except for violations that
could not reasonably be expected to have a Material Adverse Effect; and not,
without the prior written consent of the Administrative Agent, alter or remove
any identifying symbol or number on any Material item of Equipment.

(c)           Possession or Control of Certain Collateral.  If (i)
any amount payable under or in connection with any of the Collateral in excess
of $500,000 shall be or become evidenced by any Instrument, Tangible Chattel
Paper or Supporting Obligation or (ii) if any Collateral shall be stored or
shipped subject to a Document or (iii) if any Collateral in excess of $500,000
shall consist of Investment Property in the form of certificated securities
(other than Cash Equivalents held in accordance with the Credit Agreement),
promptly notify the Administrative Agent of the existence of such Collateral
and, at the reasonable request of the Administrative Agent, deliver such
Instrument, Chattel Paper, Supporting Obligation, Document or Investment
Property to the Administrative Agent to be held as Collateral pursuant to this
Security Agreement.  If any Collateral shall
consist of Material Deposit Accounts, Material Electronic Chattel Paper,
Material Letter-of-Credit Rights or

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Material
uncertificated Investment Property, promptly execute and deliver (and, with
respect to any Collateral consisting of uncertificated Investment Property,
cause the issuer or Securities Intermediary with respect to such Investment
Property to execute and deliver) to the Administrative Agent all control
agreements, assignments, instruments or other documents as reasonably requested
by the Administrative Agent for the purposes of obtaining and maintaining
Control of such Collateral.

(d)           Changes in Corporate
Structure or Location.  Not, without
providing 30 days prior written notice to the Administrative Agent and without
filing (or confirming that the Administrative Agent has filed) such amendments
to any previously filed financing statements as the Administrative Agent may
require, (i) alter its corporate existence or, in one transaction or a series
of transactions, merge into or consolidate with any other entity, or sell all
or substantially all of its assets, except as permitted by the Credit
Agreement, (ii) change its state of incorporation or formation or (iii) change
its registered corporate name.

(e)           Inspection.  Allow the Administrative Agent
or its representatives to visit and inspect the Collateral as set forth in
Section 5.6 of the Credit Agreement.

(f)            Perfection of Security Interest. Each Obligor hereby authorizes the
Administrative Agent to prepare and file such financing statements (including
continuation statements) or amendments thereof or supplements thereto or other
instruments as the Administrative Agent may from time to time deem necessary or
appropriate in order to perfect and maintain the security interests granted on
the Collateral hereunder except with respect to perfection only, for Collateral
that is subject to a Permitted Lien under subsections (xi) and (xii) of the
definition of Permitted Lien in accordance with the UCC.  Each Obligor shall also execute and deliver to the Administrative Agent such
agreements, assignments or instruments (including affidavits, notices,
reaffirmations and amendments and restatements of existing documents, as the
Administrative Agent may reasonably request) and do all such other things as the
Administrative Agent may reasonably deem necessary or appropriate (i) to assure
to the Administrative Agent its security interests hereunder are perfected in
accordance with the UCC, including, without limitation, (A) any financing
statement that describes the Collateral as “all personal property” or “all
assets” or in some other manner as the Administrative Agent deems necessary or
advisable, (B) such financing statements (including continuation statements) or
amendments thereof or supplements thereto or other instruments as the
Administrative Agent may from time to time reasonably request in order to
perfect and maintain the security interests granted hereunder in accordance
with the UCC and any other personal property security legislation in the appropriate
state(s) or province(s), (C) with regard to Investment Property, execute and
cause any Securities Intermediary with respect to such Investment Property to
execute a securities control agreement in form and substance satisfactory to
the Administrative Agent, (D) with regard to registered Material Copyrights, a
Notice of Grant of Security Interest in Copyrights for filing with the United
States Copyright Office in the form of Schedule 5(f)(i) attached hereto,
(E) with regard to Material Patents, a Notice of Grant of Security Interest in
Patents for filing with the United States Patent and Trademark Office in the
form of

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Schedule
5(f)(ii) attached hereto
and (F) with regard to Material Trademarks, a Notice of Grant of Security
Interest in Trademarks for filing with the United States Patent and Trademark
Office in the form of Schedule 5(f)(iii) attached hereto, (ii) to
consummate the transactions contemplated hereby and (iii) to otherwise protect
and assure the Administrative Agent of its rights and interests hereunder.  To that end, each Obligor hereby irrevocably
makes, constitutes and appoints the Administrative Agent, its nominee or any
other person whom the Administrative Agent may designate, as such Obligor’s
attorney in fact with full power and for the limited purpose to sign in the
name of such Obligor any such notices or similar documents which in the
Administrative Agent’s reasonable discretion would be necessary or appropriate
in order to perfect and maintain perfection of the security interests granted
hereunder other than, with respect to perfection only, in Vehicles and
Collateral that is subject to a Permitted Lien under subsections (xi) and (xii)
of the definition of Permitted Lien, such power, being coupled with an
interest, being and remaining irrevocable so long as the Credit Agreement is in
effect or any amounts payable thereunder, under any other Credit Document or
any Secured Hedging Agreement shall remain outstanding (other than contingent
indemnity obligations which by the terms thereof are stated to survive
termination of the Credit Documents, and until all of the Commitments
thereunder shall have terminated.  In the
event for any reason the law of any jurisdiction other than North Carolina
becomes or is applicable to the Collateral of any Obligor or any part thereof,
or to any of the Secured Obligations, such Obligor agrees to execute and
deliver all such instruments and to do all such other things as the
Administrative Agent reasonably deems necessary or appropriate to preserve,
protect and enforce the security interests of the Administrative Agent under
the law of such other jurisdiction other than, with respect to perfection only,
in Vehicles and Collateral that is subject to a Permitted Lien under
subsections (xi) and (xii) of the definition of Permitted Lien (and, if an
Obligor shall fail to do so promptly upon the request of the Administrative
Agent, then the Administrative Agent may execute any and all such requested
documents on behalf of such Obligor pursuant to the power of attorney granted
hereinabove).  Each Obligor agrees to
mark its books and records to reflect the security interest of the
Administrative Agent in the Collateral.

(g)           Collateral Held by Warehouseman, Bailee, etc.  If any
Collateral exceeding an aggregate value of $500,000 is at any time in the
possession or control of a warehouseman, bailee or any agent or processor of
such Obligor (except if under repair or refurbishment), notify the
Administrative Agent of such possession and, upon the Administrative Agent’s reasonable
request, notify such Person of the Administrative Agent’s security interest for
the benefit of the Lenders in such Collateral and instruct such Person to hold
all such Collateral for the Administrative Agent’s account subject to the
Administrative Agent’s instructions, and obtain from such Person a written
acknowledgement of the Administrative Agent’s security interest therein, in
form and substance reasonably satisfactory to the Administrative Agent.

(h)           Treatment of
Accounts.  Unless and until an Event
of Default occurs and is continuing, each Obligor may settle and adjust
disputes and claims with its franchisees, customers and account debtors, handle
returns and recoveries and grant discounts, credit

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and allowances in the ordinary course of its business
as presently conducted and otherwise for amounts and on terms which such
Obligor in good faith considers advisable. 
However, upon the occurrence of any Event of Default and during the
continuation thereof, if so instructed by the Administrative Agent, such
Obligor shall settle and adjust disputes and claims as directed by the
Administrative Agent, and no discount, credit or allowance other than on normal
trade terms in the ordinary course of business shall be granted to any customer
or account debtor and no returns of merchandise shall be accepted by such
Obligor without the Administrative Agent’s consent.  The Administrative Agent may (but shall not
be required to) at all times upon the occurrence of any Event of Default and
during the continuance thereof, settle or adjust disputes and claims directly
with customers or account debtors for amounts and upon terms which the
Administrative Agent considers reasonable.

(i)            Covenants Relating to Inventory.

(i)            Maintain,
keep and preserve all Material Inventory in accordance with standard operating
procedures.

(ii)           If any Inventory
exceeding an aggregate value of $500,000 is
at any time evidenced by a document of title, deliver such document of title to
the Administrative Agent.

(j)            Covenants Relating to Copyrights.

(i)            Employ the Copyrights for each Work with such
notice of copyright as may be required by law to secure copyright protection.

(ii)           Not do any act or knowingly omit to do any act
whereby any Material Copyright may become invalidated and (A) not do any act,
or knowingly omit to do any act, whereby any Material Copyright may become
injected into the public domain; (B) notify the Administrative Agent
immediately if it knows, or has reason to know, that any Material Copyright may
become injected into the public domain or of any adverse determination or
development (including, without limitation, the institution of, or any such
determination or development in, any proceeding in any court or tribunal in the
United States or any other country) regarding an Obligor’s ownership of any
such Copyright or its validity; (C) take all necessary steps as it shall deem
appropriate under the circumstances, to maintain and pursue each application
(and to obtain the relevant registration) and to maintain each registration of
each Material Copyright owned by an Obligor including, without limitation,
filing of applications for renewal where necessary; and (D) promptly notify the
Administrative Agent of any material infringement of any Material Copyright of
an Obligor of which it becomes aware and take such actions as it shall
reasonably deem appropriate under the circumstances to protect such Copyright,
including, where appropriate, the bringing of suit for infringement,

 12

seeking injunctive relief and seeking to recover any and all damages
for such infringement.

(iii)          Not make
any assignment or agreement in conflict with the security interest in the
Copyrights of each Obligor hereunder.

(k)           Covenants Relating to Patents and Trademarks.

(i)            (A) Continue to use each Material Trademark in
full force free from any claim of abandonment for non-use, unless such Material
Trademark is abandoned or no longer used in the ordinary course of business,
(B) maintain as in the past the quality of products and services offered under
such Material Trademark, (C) employ such Material Trademark with the
appropriate notice of registration, (D) not adopt or use any mark which is
confusingly similar or a colorable imitation of such Material Trademark unless
the Administrative Agent, for the ratable benefit of the Lenders, shall obtain
a perfected security interest in such mark pursuant to this Security Agreement,
and (E) not (and not permit any licensee or sublicensee thereof to) do any act
or knowingly omit to do any act whereby any such Material Trademark may become
invalidated.

(ii)           Not do any act, or omit to do any act, whereby
any Material Patent may become abandoned or dedicated.

(iii)          Notify
the Administrative Agent immediately if it knows, or has reason to know, that
any application or registration relating to any Material Patent or Material
Trademark may become abandoned or dedicated, or of any adverse determination or
development (including, without limitation, the institution of, or any such
determination or development in, any proceeding in the United States Patent and
Trademark Office or any court or tribunal in any country) regarding an Obligor’s
ownership of any such Patent or Trademark or its right to register the same or
to keep and maintain the same.

(iv)          Whenever an Obligor, either by itself or through
an agent, employee, licensee or designee, shall file an application for the
registration of any Patent or Trademark with the United States Patent and
Trademark Office or any similar office or agency in any other country or any
political subdivision thereof, such Obligor shall report such filing to the
Administrative Agent within five Business Days after the last day of the fiscal
quarter in which such filing occurs. 
Upon request of the Administrative Agent, an Obligor shall execute and
deliver any and all agreements, instruments, documents and papers as the
Administrative Agent may request to evidence the Administrative Agent’s and the
Lenders’ security interest in any Patent or Trademark and the goodwill and
General Intangibles of an Obligor relating thereto or represented thereby.

 13
 

(v)           Take all reasonable and necessary steps,
including, without limitation, in any proceeding before the United States
Patent and Trademark Office, or any similar office or agency in any other
country or any political subdivision thereof, to maintain and pursue each
application, to obtain the relevant registration and to maintain each
registration of all Material Patents and Material Trademarks, unless such Material
Patents and Material Trademarks have been abandoned or are no longer used in
the ordinary course of business, including, without limitation, filing of
applications for renewal, affidavits of use and affidavits of incontestability.

(vi)          Promptly notify the Administrative Agent and the
Lenders after it learns that any Material Patent or Material Trademark included
in the Collateral is infringed, misappropriated or diluted by a third party and
promptly sue for infringement, misappropriation or dilution, to seek injunctive
relief where appropriate and to recover any and all damages for such
infringement, misappropriation or dilution, or take such other actions as it
shall reasonably deem appropriate under the circumstances to protect such
Patent or Trademark.

(vii)         Not make
any assignment or agreement in conflict with the security interest in the
Patents or Trademarks of each Obligor hereunder.

(l)            New Patents, Copyrights and Trademarks.  Promptly
provide the Administrative Agent (i) with respect to Material Copyrights, a
duly executed Notice of Grant of Security Interest in Copyrights, (ii) with
respect to Material Patents, a duly executed Notice of Grant of Security
Interest in Patents, (iii) with respect to Material Trademarks, a duly executed
Notice of Grant of Security Interest in Trademarks or (iv) such other duly
executed documents as the Administrative Agent may reasonably request in a form
acceptable to counsel for the Administrative Agent and suitable for recording
to evidence the security interest of the Administrative Agent on behalf of the
Lenders in the Copyright, Patent or Trademark which is the subject of such new
application.

(m)          Commercial Tort
Claims; Notice of Litigation.  (i)
Promptly forward to the Administrative Agent written notification of any and
all Commercial Tort Claims, including, but not limited to, any and all actions,
suits, and proceedings before any court or Governmental Authority by such
Obligor or any of its Subsidiaries and (ii) execute and deliver such
statements, documents and notices and do and cause to be done all such things
as may be reasonably required by the Administrative Agent, or required by law,
including all things which may from time to time be necessary under the UCC to
fully create, preserve, perfect and protect the priority of the Administrative
Agent’s security interest in any Commercial Tort Claims.

(n)           Insurance.  Insure, repair and replace the
Collateral of such Obligor as set forth in Section 5.5 of the Credit
Agreement.  All proceeds derived from
insurance on the Collateral shall be subject to the security interest of the
Administrative Agent hereunder.

 14
 

(o)           Fixtures.  At all times maintain the Collateral existing
as of the Closing Date as personal property and not affix any of such
Collateral to any real property (except real property in which the
Administrative Agent has a valid, perfected and first priority security
interest or that is subject to a Permitted Lien to the extent such Collateral
may be encumbered by a Permitted Lien) in a manner which would change its
nature from personal property to real property or a Fixture.

6.             Performance of
Obligations; Advances by Administrative Agent.  On failure of any Obligor to perform any of
the covenants and agreements contained herein, the Administrative Agent may, at
its sole option and in its sole discretion, perform or cause to be performed
the same and in so doing may expend such sums as the Administrative Agent may
reasonably deem advisable in the performance thereof, including, without
limitation, the payment of any insurance premiums, the payment of any taxes, a
payment to obtain a release of a Lien or potential Lien (other than a Permitted
Lien), expenditures made in defending against any adverse claim (other than a
Permitted Lien) and all other expenditures which the Administrative Agent may
make for the protection of the security interest hereof or may be compelled to
make by operation of law.  All such sums
and amounts so expended shall be repayable by the Obligors on a joint and
several basis promptly upon timely notice thereof and demand therefor, shall
constitute additional Secured Obligations and shall bear interest from the date
said amounts are expended at the ABR Default Rate.  No such performance of any covenant or
agreement by the Administrative Agent on behalf of any Obligor, and no such
advance or expenditure therefor, shall relieve the Obligors of any default
under the terms of this Security Agreement, the other Credit Documents or any
Secured Hedging Agreement.  The
Administrative Agent may make any payment hereby authorized in accordance with
any bill, statement or estimate procured from the appropriate public office or
holder of the claim to be discharged without inquiry into the accuracy of such
bill, statement or estimate or into the validity of any tax assessment, sale,
forfeiture, tax lien, title or claim except to the extent such payment is being
contested in good faith by an Obligor in appropriate proceedings and against
which adequate reserves are being maintained in accordance with GAAP.

7.             Events of Default.

The occurrence of an event,
which under the Credit Agreement would constitute an Event of Default, shall be
an event of default hereunder (an “Event of Default”).

8.             Remedies.

(a)           General Remedies.  Upon the
occurrence of an Event of Default and during continuation thereof, the
Administrative Agent and the Lenders shall have, in addition to the rights and
remedies provided herein, in the Credit Documents, in any Secured Hedging
Agreement or by law (including, but not limited to, levy of attachment,
garnishment, and the rights and remedies set forth in the Uniform Commercial
Code of the jurisdiction applicable to the affected Collateral), the rights and
remedies of a secured party under the UCC (regardless of whether the UCC is the
law of the jurisdiction where the rights and remedies are asserted and
regardless of whether the UCC applies to the affected Collateral),

 15
 

and
further, the Administrative Agent may, with or without judicial process or the
aid and assistance of others, to the extent permitted by law, (i) enter on any
premises on which any of the Collateral may be located and, without resistance
or interference by the Obligors, take possession of the Collateral, (ii)
dispose of any Collateral on any such premises, (iii) require the Obligors to
assemble and make available to the Administrative Agent at the expense of the
Obligors any Collateral at any place and time designated by the Administrative
Agent which is reasonably convenient to both parties, (iv) remove any Collateral
from any such premises for the purpose of effecting sale or other disposition
thereof, and/or (v) without demand and without advertisement, notice, hearing
or process of law, all of which each of the Obligors hereby waives to the
fullest extent permitted by law, at any place and time or times, sell and
deliver any or all Collateral held by or for it at public or private sale, by
one or more contracts, in one or more parcels, for cash, upon credit or
otherwise, at such prices and upon such terms as the Administrative Agent deems
advisable, in its sole discretion (subject to any and all mandatory legal
requirements).  Neither the
Administrative Agent’s compliance with any applicable state or federal law in
the conduct of such sale, nor its disclaimer of any warranties relating to the
Collateral, shall be considered to adversely affect the commercial
reasonableness of such sale.  In addition
to all other sums due the Administrative Agent and the Lenders with respect to the
Secured Obligations, the Obligors shall pay the Administrative Agent and each
of the Lenders all reasonable documented costs and expenses incurred by the
Administrative Agent or any such Lender, including, but not limited to,
reasonable attorneys’ fees and court costs, in obtaining or liquidating the
Collateral, in enforcing payment of the Secured Obligations, or in the
prosecution or defense of any action or proceeding by or against the
Administrative Agent or the Lenders or the Obligors concerning any matter
arising out of or connected with this Security Agreement, any Collateral or the
Secured Obligations, including, without limitation, any of the foregoing
arising in, arising under or related to a case under the Bankruptcy Code.  To the extent the rights of notice cannot be
legally waived hereunder, each Obligor agrees that any requirement of
reasonable notice shall be met if such notice is personally served on or
mailed, postage prepaid, to the applicable Obligor in accordance with the
notice provisions of Section 9.2 of the Credit Agreement at least 10 days
before the time of sale or other event giving rise to the requirement of such
notice.  The Administrative Agent and the
Lenders shall not be obligated to make any sale or other disposition of the Collateral
regardless of notice having been given. 
To the extent permitted by law, any Lender may be a purchaser at any
such sale.  To the extent permitted by
applicable law, each of the Obligors hereby waives all of its rights of
redemption with respect to any such sale. 
Subject to the provisions of applicable law, the Administrative Agent
and the Lenders may postpone or cause the postponement of the sale of all or
any portion of the Collateral by announcement at the time and place of such
sale, and such sale may, without further notice, to the extent permitted by
law, be made at the time and place to which the sale was postponed, or the
Administrative Agent and the Lenders may further postpone such sale by
announcement made at such time and place.

(b)           Remedies Relating to Accounts.  Upon the
occurrence of an Event of Default and during the continuation thereof, whether
or not the Administrative Agent has exercised any or all of its rights and
remedies hereunder, each Obligor will promptly upon

 16
 

request
of the Administrative Agent instruct all account debtors to remit all payments
in respect of Accounts to a mailing location selected by the Administrative
Agent.  In addition, upon the occurrence
of an Event of Default and during the continuation thereof, the Administrative
Agent or its designee may notify any Obligor’s customers and account debtors
that the Accounts of such Obligor have been assigned to the Administrative
Agent or of the Administrative Agent’s security interest therein, and may
(either in its own name or in the name of an Obligor or both) demand, collect
(including, without limitation, by way of a lockbox arrangement), receive, take
receipt for, sell, sue for, compound, settle, compromise and give acquittance
for any and all amounts due or to become due on any Account, and, in the Administrative
Agent’s discretion, file any claim or take any other action or proceeding to
protect and realize upon the security interest of the Administrative Agent in
the Accounts.  Each Obligor acknowledges
and agrees that the Proceeds of its Accounts remitted to or on behalf of the
Administrative Agent for the benefit of the Lenders in accordance with the
provisions hereof shall be applied to the Secured Obligations in the order set
forth in Section 2.11(b) of the Credit Agreement  and that such Obligor shall not have any
right, title or interest in such Proceeds or in any such other amounts except
as expressly provided herein.  The
Administrative Agent and the Lenders shall have no liability or responsibility
to any Obligor for acceptance of a check, draft or other order for payment of
money bearing the legend “payment in full” or words of similar import or any
other restrictive legend or endorsement or be responsible for determining the
correctness of any remittance.  Each
Obligor hereby agrees to indemnify the Administrative Agent and the Lenders and
their respective officers, directors, employees, partners, members, counsel,
agents, representatives, advisors and affiliates from and against all
liabilities, damages, losses, actions, claims, judgments, costs, expenses,
charges and reasonable attorneys’ fees suffered or incurred by the
Administrative Agent or the Lenders (each, an “Indemnified Party”)
because of the maintenance of the foregoing arrangements except as relating to
or arising out of the gross negligence or willful misconduct of an Indemnified
Party or its officers, employees or agents, in which case such Indemnified
Party shall not be entitled to the indemnification provisions hereunder.  In the case of any investigation, litigation
or other proceeding, the foregoing indemnity shall be effective whether or not
such investigation, litigation or proceeding is brought by an Obligor, its
directors, shareholders or creditors or an Indemnified Party or any other
Person or any other Indemnified Party is otherwise a party thereto.

(c)           Access.  In addition to the rights and
remedies hereunder, upon the occurrence of an Event of Default and during the
continuation thereof, the Administrative Agent shall have the right to enter
and remain upon the various premises of the Obligors without cost or charge to
the Administrative Agent, and use the same, together with materials, supplies,
books and records of the Obligors for the purpose of collecting and liquidating
the Collateral, or for preparing for sale and conducting the sale of the
Collateral, whether by foreclosure, auction or otherwise.  In addition, the Administrative Agent may
remove Collateral, or any part thereof, from such premises and/or any records
with respect thereto, in order to effectively collect or liquidate such
Collateral.  If the Administrative
Agent exercises its right to take possession of the Collateral, each Obligor
shall also at its expense perform any and all other steps reasonably requested
by the Administrative

 17
 

Agent to preserve and
protect the security interest hereby granted in the Collateral, such as placing
and maintaining signs indicating the security interest of the Administrative
Agent, appointing overseers for the Collateral and maintaining inventory
records.

(d)           Nonexclusive Nature of Remedies.  Failure
by the Administrative Agent or the Lenders to exercise any right, remedy or
option under this Security Agreement, any other Credit Document, any Secured
Hedging Agreement or as provided by law, or any delay by the Administrative
Agent or the Lenders in exercising the same, shall not operate as a waiver of
any such right, remedy or option.  No
waiver hereunder shall be effective unless it is in writing, signed by the
party against whom such waiver is sought to be enforced and then only to the
extent specifically stated, which in the case of the Administrative Agent or
the Lenders shall only be granted as provided herein.  To the extent permitted by law, neither the
Administrative Agent, the Lenders, nor any party acting as attorney for the
Administrative Agent or the Lenders, shall be liable hereunder for any acts or
omissions or for any error of judgment or mistake of fact or law other than
their gross negligence or willful misconduct hereunder.  The rights and remedies of the Administrative
Agents and the Lenders under this Security Agreement shall be cumulative and
not exclusive of any other right or remedy which the Administrative Agent or
the Lenders may have.

(e)           Retention of Collateral.  In
addition to the rights and remedies hereunder, upon the occurrence of any Event
of Default and during the continuation thereof, the Administrative Agent
may retain all or a portion of the Collateral in satisfaction of the Secured
Obligations but only after providing the notices required by Sections 9-620 and 9-621 (or similar
provision) of the UCC (or any successor sections of the UCC) and
otherwise complying with the requirements of applicable law of the relevant
jurisdiction.  Unless and until the
Administrative Agent shall have provided such notices and complied with all
applicable legal requirements, however, the Administrative Agent shall not be
deemed to have retained any Collateral in satisfaction of any Secured
Obligations for any reason.

(f)            Deficiency.  In the event that the proceeds
of any sale, collection or realization are insufficient to pay all amounts to
which the Administrative Agent or the Lenders are legally entitled, the
Obligors shall be jointly and severally liable for the deficiency, together
with interest thereon at the ABR Default Rate, together with the costs of collection and the reasonable fees of any
attorneys employed by the Administrative Agent to collect such deficiency.  Any surplus remaining after the full payment
and satisfaction of the Secured Obligations shall be returned to the Obligors
or to whomsoever a court of competent jurisdiction shall determine to be
entitled thereto.

(g)           Other Security.  To the extent that any of the Secured
Obligations are now or hereafter secured by property other than the Collateral
(including, without limitation, real property and securities owned by an
Obligor), or by a guarantee, endorsement or property of any other Person, then
the Administrative Agent and the Lenders shall have the right to proceed
against such other property, guarantee or endorsement upon the

 18
 

occurrence of any Event
of Default, and the Administrative Agent and the Lenders have the right, in
their sole discretion, to determine which rights, security, liens, security
interests or remedies the Administrative Agent and the Lenders shall at any
time pursue, relinquish, subordinate, modify or take with respect thereto,
without in any way modifying or affecting any of them or any of the
Administrative Agent’s and the Lenders’ rights or the Secured Obligations under
this Security Agreement, under any other of the Credit Documents or under any
Secured Hedging Agreement.

9.             Rights of the Administrative Agent.

(a)           Power of Attorney.  In
addition to other powers of attorney contained herein, each Obligor hereby
designates and appoints the Administrative Agent, on behalf of the Lenders, and
each of its designees or agents, as attorney-in-fact of such Obligor,
irrevocably and with power of substitution, with authority to take any or all
of the following actions upon the occurrence and during the continuation of an
Event of Default:

(i)            to demand, collect, settle, compromise, adjust,
give discharges and releases, all as the Administrative Agent may reasonably
determine;

(ii)           to commence and prosecute any actions at any court
for the purposes of collecting any Collateral and enforcing any other right in
respect thereof;

(iii)          to
defend, settle, adjust or compromise any action, suit or proceeding brought
and, in connection therewith, give such discharge or release as the Administrative
Agent may deem reasonably appropriate;

(iv)          to receive, open and dispose of mail addressed to
an Obligor and endorse checks, notes, drafts, acceptances, money orders, bills
of lading, warehouse receipts or other instruments or documents evidencing
payment, shipment or storage of the goods giving rise to the Collateral of such
Obligor, or securing or relating to such Collateral, on behalf of and in the
name of such Obligor;

(v)           to sell, assign, transfer, endorse, make any
agreement in respect of, or otherwise deal with or exercise rights in respect
of, any Collateral or the goods or services which have given rise thereto, as
fully and completely as though the Administrative Agent were the absolute owner
thereof for all purposes;

(vi)          to adjust and settle claims under any insurance
policy relating thereto;

(vii)         to execute
and deliver and/or file all assignments, conveyances, statements, financing
statements, continuation statements, security agreements, affidavits, notices
and other agreements, instruments and documents that the Administrative Agent
may determine necessary in order to perfect and maintain the

 19
 

security
interests and liens granted in this Security Agreement and in order to fully
consummate all of the transactions contemplated herein;

(viii)        to
institute any foreclosure proceedings that the Administrative Agent may deem
appropriate; and

(ix)           to do and perform all such other acts and things
as the Administrative Agent may reasonably deem to be necessary or appropriate
in connection with the Collateral.

This
power of attorney is a power coupled with an interest and shall be irrevocable
for so long as any of the Secured Obligations remain outstanding (other than
contingent indemnity obligations which by the terms thereof are stated to
survive termination of the Credit Documents), any Credit Document or any
Secured Hedging Agreement is in effect, and until all of the Commitments shall
have been terminated.  The Administrative
Agent shall be under no duty to exercise or withhold the exercise of any of the
rights, powers, privileges and options expressly or implicitly granted to the
Administrative Agent in this Security Agreement, and shall not be liable for
any failure to do so or any delay in doing so. 
The Administrative Agent shall not be liable for any act or omission or
for any error of judgment or any mistake of fact or law in its individual
capacity or its capacity as attorney-in-fact except acts or omissions resulting
from its gross negligence or willful misconduct.  This power of attorney is conferred on the
Administrative Agent solely to protect, preserve and realize upon its security
interest in the Collateral.

(b)           Assignment by the Administrative Agent.  The
Administrative Agent may from time to time assign its rights and obligations hereunder
as permitted under the Credit Agreement and any portion thereof and/or the
Collateral and any portion thereof, and the assignee shall be entitled to all
of the rights and remedies of the Administrative Agent under this Security
Agreement in relation thereto.

(c)           The Administrative Agent’s Duty of Care.  Other
than the exercise of reasonable care to assure the safe custody of the
Collateral while being held by the Administrative Agent hereunder, the
Administrative Agent shall have no duty or liability to preserve rights
pertaining thereto, it being understood and agreed that the Obligors shall be
responsible for preservation of all rights in the Collateral, and the
Administrative Agent shall be relieved of all responsibility for the Collateral
upon surrendering it or tendering the surrender of it to the Obligors.  The Administrative Agent shall be deemed to
have exercised reasonable care in the custody and preservation of the
Collateral in its possession if the Collateral is accorded treatment substantially
equal to that which the Administrative Agent accords its own property, which
shall be no less than the treatment employed by a reasonable and prudent agent
in the industry, it being understood that the Administrative Agent shall not
have responsibility for taking any necessary steps to preserve rights against
any parties with respect to any of the Collateral.  In the event of a public or private sale of
Collateral pursuant to Section 8 hereof, the Administrative Agent shall have no
obligation to clean-up, repair or otherwise prepare the Collateral for sale.

 20
 

10.           Application of Proceeds.  Upon the
occurrence and during the continuation of an Event of Default, any payments in
respect of the Secured Obligations and any proceeds of the Collateral, when received
by the Administrative Agent or any of the Lenders in cash or its equivalent,
will be applied in reduction of the Secured Obligations in the order set forth
in Section 2.11(b) of the Credit Agreement, and each Obligor irrevocably
waives the right to direct the application of such payments and proceeds and
acknowledges and agrees that the Administrative Agent shall have the continuing
and exclusive right to apply and reapply any and all such payments and proceeds
in the order set forth in Section 2.11(b) of the Credit Agreement,
notwithstanding any entry to the contrary upon any of its books and records.

11.           Costs of Counsel.  If at
any time hereafter, whether upon the occurrence of an Event of Default or not,
the Administrative Agent employs counsel to prepare or consider amendments,
waivers or consents with respect to this Security Agreement, or to take action
or make a response in or with respect to any legal or arbitral proceeding
relating to this Security Agreement or relating to the Collateral, or to
protect the Collateral or exercise any rights or remedies under this Security
Agreement or with respect to the Collateral, then the Obligors agree to
promptly pay upon demand any and all such reasonable documented costs and
expenses of the Administrative Agent, all of which costs and expenses shall
constitute Secured Obligations hereunder.

12.           Continuing Agreement.

(a)           Upon this Security Agreement becoming effective
in accordance with the terms hereof and of the other Credit Documents, the
Existing Security Agreement shall be deemed amended and restated by this
Security Agreement.  This Security
Agreement shall be a continuing agreement in every respect and shall remain in
full force and effect so long as any of the Secured Obligations remain
outstanding (other than contingent indemnity obligations which by the terms
thereof are stated to survive termination of the Credit Documents) or any
Credit Document or any Secured Hedging Agreement is in effect, and until all of
the Commitments thereunder shall have terminated.  Upon such payment and termination, this
Security Agreement shall be automatically terminated without delivery of any
instrument or performance of any act by any Person and the Administrative Agent
and the Lenders shall, upon the request and at the expense of the Obligors,
forthwith release all liens and security interests granted hereunder and shall
execute and deliver all UCC termination statements and/or other documents
reasonably requested by the Obligors evidencing such termination.  Notwithstanding the foregoing all releases
and indemnities provided hereunder shall survive termination of this Security
Agreement.

(b)           This Security Agreement shall continue to be
effective or be automatically reinstated, as the case may be, if at any time
payment, in whole or in part, of any of the Secured Obligations is rescinded or
must otherwise be restored or returned by the Administrative Agent or any
Lender as a preference, fraudulent conveyance or otherwise under any
bankruptcy, insolvency or similar law, all as though such payment had not been
made; provided that in the event payment of all or any part of the
Secured Obligations is rescinded or must be restored or returned, all
reasonable costs and expenses (including

 21
 

without
limitation any reasonable legal fees and disbursements) incurred by the
Administrative Agent or any Lender in defending and enforcing such
reinstatement shall be deemed to be included as a part of the Secured
Obligations.

13.           Amendments; Waivers; Modifications.  This
Security Agreement and the provisions hereof may not be amended, waived,
modified, changed, discharged or terminated except as set forth in Section 9.1
of the Credit Agreement.

14.           Successors in Interest.  This
Security Agreement shall create a continuing security interest in the
Collateral and shall be binding upon each Obligor, its successors and assigns
and shall inure, together with the rights and remedies of the Administrative
Agent and the Lenders hereunder, to the benefit of the Administrative Agent and
the Lenders and their successors and permitted assigns; provided, however,
that none of the Obligors may assign its rights or delegate its duties
hereunder without the prior written consent of each Lender or the Required
Lenders, as required by the Credit Agreement.  To the fullest extent permitted by law, each
Obligor hereby releases the Administrative Agent and each Lender, each of their
respective officers, employees and agents, and each of their successors and
assigns, from any liability for any act or omission relating to this Security
Agreement or the Collateral, except for any liability arising from the gross
negligence or willful misconduct of such Person.

15.           Notices.  All notices required or
permitted to be given under this Security Agreement shall be in conformance
with Section 9.2 of the Credit Agreement.

16.           Counterparts.  This Security Agreement may be
executed in any number of counterparts, each of which where so executed and
delivered shall be an original, but all of which shall constitute one and the
same instrument.  It shall not be
necessary in making proof of this Security Agreement to produce or account for
more than one such counterpart.  Delivery
of executed counterparts of the Security Agreement by telecopy shall be
effective as an original and shall constitute a representation that an original
shall be delivered upon the request of the Administrative Agent.

17.           Headings.  The headings of the sections
and subsections hereof are provided for convenience only and shall not in any
way affect the meaning, construction or interpretation of any provision of this
Security Agreement.

18.           Governing Law;
Submission to Jurisdiction; Waiver of Jury Trial; Venue. THIS SECURITY
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NORTH CAROLINA.  The terms of
Sections 9.14 and 9.18 of the Credit Agreement are incorporated herein by
reference, mutatis mutandis, and the parties hereto
agree to such terms.

19.           Severability.  If any provision of any of the
Security Agreement is determined to be illegal, invalid or unenforceable, such
provision shall be fully severable and the remaining

 22
 

provisions shall remain in full force and effect and
shall be construed without giving effect 
to the illegal, invalid or unenforceable provisions.

20.           Entirety.  This Security Agreement, the
other Credit Documents and the Secured Hedging Agreements represent the entire
agreement of the parties hereto and thereto, and supersede all prior agreements
and understandings, oral or written, if any, including any commitment letters
or correspondence relating to this Security Agreement, the other Credit
Documents, the Secured Hedging Agreements or the transactions contemplated
herein and therein.

21.           Survival.  All representations and
warranties of the Obligors hereunder shall survive the execution and delivery
of this Security Agreement, the other Credit Documents and the Secured Hedging
Agreements, the delivery of the Notes and the making of the Loans and the
issuance of the Letters of Credit under the Credit Agreement.

22.           Joint and Several Obligations of Obligors.

(a)           Each of the Obligors is accepting joint and
several liability hereunder in consideration of the financial accommodation to
be provided by the Lenders under the Credit Agreement, for the mutual benefit,
directly and indirectly, of each of the Obligors and in consideration of the
undertakings of each of the Obligors to accept joint and several liability for
the obligations of each of them.

(b)           Each of the Obligors jointly and severally hereby
irrevocably and unconditionally accepts, not merely as a surety but also as a
co-debtor, joint and several liability with the other Obligors with respect to
the payment and performance of all of the Secured Obligations arising under
this Security Agreement, the other Credit Documents and the Secured Hedging
Agreements, it being the intention of the parties hereto that all the Secured
Obligations shall be the joint and several obligations of each of the Obligors
without preferences or distinction among them.

(c)           Notwithstanding any
provision to the contrary contained herein or in any other of the Credit
Documents, to the extent the obligations of an Obligor shall be adjudicated to
be invalid or unenforceable for any reason (including, without limitation,
because of any applicable state or federal law relating to fraudulent
conveyances or transfers) then the obligations of such Obligor hereunder shall
be limited to the maximum amount that is permissible under applicable law
(whether federal or state and including, without limitation, the Bankruptcy
Code).

[remainder of page intentionally left blank]

 23

Each of the parties hereto has
caused a counterpart of this Security Agreement to be duly executed and
delivered as of the date first above written.

	
  OBLIGORS:

  	
   

  	
  RED ROBIN INTERNATIONAL, INC.,

  
	
   

  	
  a Nevada corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Katherine L. Scherping

  	
   

  
	
   

  	
  Name: Katherine L. Scherping

  
	
   

  	
  Title: Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  RED ROBIN GOURMET BURGERS, INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
  RED ROBIN WEST, INC.,

  
	
   

  	
  a Nevada corporation

  
	
   

  	
  RED ROBIN DISTRIBUTING COMPANY, INC.,

  
	
   

  	
  a Colorado corporation

  
	
   

  	
  WESTERN FRANCHISE DEVELOPMENT, INC.,

  
	
   

  	
  a California corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Katherine L. Scherping

  	
   

  
	
   

  	
  Name: Katherine L. Scherping

  
	
   

  	
  Title: Chief Financial Officer

  

 

 

	
  ADMINISTRATIVE AGENT:

  	
  WACHOVIA BANK, NATIONAL ASSOCIATION,

  
	
   

  	
  as Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kevin Lilly

  	
   

  
	
   

  	
  Name: Kevin Lilly

  
	
   

  	
  Title: Vice President

  

 

 2Exhibit 10.03

Execution Copy

$750,000,000

AMENDED AND RESTATED CREDIT AGREEMENT

Dated as of June 19, 2007

Among

STEEL DYNAMICS, INC.

as
Borrower

and

THE INITIAL LENDERS, INITIAL
ISSUING BANK AND

SWING LINE BANK NAMED OR
DESCRIBED HEREIN

as
Initial Lenders, Initial Issuing Bank  and  Swing Line
Bank

and

NATIONAL CITY BANK

as
Collateral Agent

and

NATIONAL CITY BANK and WELLS
FARGO BANK, NATIONAL ASSOCIATION

as
Administrative Agents

and

BANK OF AMERICA, N.A. and
NATIONAL CITY BANK

as
Syndication Agents

and

BANC OF AMERICA SECURITIES LLC
and NATIONAL CITY BANK

as  Joint Lead Arrangers

Steel Dynamics – Amended and Restated Credit Agreement

TABLE OF CONTENTS

	
  Section

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  I

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DEFINITIONS AND
  ACCOUNTING TERMS

  	
   

  	
   

  
	
  Section 1.01.

  	
   

  	
  Certain Defined Terms

  	
   

  	
  2

  
	
  Section 1.02.

  	
   

  	
  Computation of Time Periods; Other Definitional
  Provisions

  	
   

  	
  24

  
	
  Section 1.03.

  	
   

  	
  Accounting Terms

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  II

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AMOUNTS AND
  TERMS OF THE ADVANCES AND THE LETTERS OF CREDIT

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 2.01.

  	
   

  	
  The Advances and the Letters of Credit

  	
   

  	
  24

  
	
  Section 2.02.

  	
   

  	
  Making the Advances

  	
   

  	
  26

  
	
  Section 2.03.

  	
   

  	
  Issuance of and Drawings and Reimbursement Under
  Letters of Credit

  	
   

  	
  29

  
	
  Section 2.04.

  	
   

  	
  Repayment of Advances

  	
   

  	
  30

  
	
  Section 2.05.

  	
   

  	
  Termination or Reduction of the Commitments

  	
   

  	
  31

  
	
  Section 2.06.

  	
   

  	
  Prepayments

  	
   

  	
  32

  
	
  Section 2.07.

  	
   

  	
  Interest

  	
   

  	
  33

  
	
  Section 2.08.

  	
   

  	
  Fees

  	
   

  	
  34

  
	
  Section 2.09.

  	
   

  	
  Conversion of Advances

  	
   

  	
  35

  
	
  Section 2.10.

  	
   

  	
  Increased Costs, Etc

  	
   

  	
  36

  
	
  Section 2.11.

  	
   

  	
  Payments and Computations

  	
   

  	
  37

  
	
  Section 2.12.

  	
   

  	
  Taxes

  	
   

  	
  39

  
	
  Section 2.13.

  	
   

  	
  Sharing of Payments, Etc

  	
   

  	
  41

  
	
  Section 2.14.

  	
   

  	
  Use of Proceeds

  	
   

  	
  42

  
	
  Section 2.15.

  	
   

  	
  Defaulting Lenders

  	
   

  	
  42

  
	
  Section 2.16.

  	
   

  	
  Evidence of Debt

  	
   

  	
  44

  
	
  Section 2.17.

  	
   

  	
  Increase in Revolving Credit Facility

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  III

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CONDITIONS OF
  EFFECTIVENESS, LENDING AND ISSUANCES OF LETTERS OF CREDIT

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 3.01.

  	
   

  	
  Conditions Precedent to Initial Extension of Credit

  	
   

  	
  46

  
	
  Section 3.02.

  	
   

  	
  Conditions Precedent to Each Borrowing and Issuance
  and Renewal

  	
   

  	
  50

  
	
  Section 3.03.

  	
   

  	
  Determinations Under Section 3.01

  	
   

  	
  51

  

 

 

	
  

  	
   

  	
  ARTICLE
  IV

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 4.01.

  	
   

  	
  Representations and Warranties of the Borrower

  	
   

  	
  51

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  V

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  COVENANTS OF THE
  BORROWER

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 5.01.

  	
   

  	
  Affirmative Covenants

  	
   

  	
  57

  
	
  Section 5.02.

  	
   

  	
  Negative Covenants

  	
   

  	
  62

  
	
  Section 5.03.

  	
   

  	
  Reporting Requirements

  	
   

  	
  69

  
	
  Section 5.04.

  	
   

  	
  Financial Covenants

  	
   

  	
  73

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  VI

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EVENTS OF
  DEFAULT

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 6.01.

  	
   

  	
  Events of Default

  	
   

  	
  73

  
	
  Section 6.02.

  	
   

  	
  Actions in Respect of the Letters of Credit upon
  Default

  	
   

  	
  76

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  VII

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THE AGENTS, ETC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 7.01.

  	
   

  	
  Authorization and Action

  	
   

  	
  76

  
	
  Section 7.02.

  	
   

  	
  Reliance, Etc

  	
   

  	
  77

  
	
  Section 7.03.

  	
   

  	
  Bank of America, N.A., National City Bank, Wells
  Fargo Bank, National Association and Affiliates

  	
   

  	
  77

  
	
  Section 7.04.

  	
   

  	
  Lender Party Credit Decision

  	
   

  	
  78

  
	
  Section 7.05.

  	
   

  	
  Indemnification

  	
   

  	
  78

  
	
  Section 7.06.

  	
   

  	
  Successor Agents

  	
   

  	
  79

  
	
  Section 7.07.

  	
   

  	
  The Joint Lead Arrangers, the Syndication Agent and
  the Documentation Agent

  	
   

  	
  80

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  VIII

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MISCELLANEOUS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 8.01.

  	
   

  	
  Amendments, Etc

  	
   

  	
  80

  
	
  Section 8.02.

  	
   

  	
  Notices, Etc

  	
   

  	
  81

  
	
  Section 8.03.

  	
   

  	
  No Waiver; Remedies

  	
   

  	
  81

  
	
  Section 8.04.

  	
   

  	
  Costs and Expenses

  	
   

  	
  81

  
	
  Section 8.05.

  	
   

  	
  Right of Set-off

  	
   

  	
  83

  
	
  Section 8.06.

  	
   

  	
  Binding Effect

  	
   

  	
  84

  
	
  Section 8.07.

  	
   

  	
  Assignments and Participations

  	
   

  	
  84

  
	
  Section 8.08.

  	
   

  	
  Execution in Counterparts

  	
   

  	
  87

  

 

 ii
 

 

	
  Section 8.09.

  	
   

  	
  No Liability of the Issuing Banks

  	
   

  	
  87

  
	
  Section 8.10.

  	
   

  	
  Confidentiality

  	
   

  	
  87

  
	
  Section 8.11.

  	
   

  	
  Release of Collateral

  	
   

  	
  88

  
	
  Section 8.12.

  	
   

  	
  Jurisdiction, Etc

  	
   

  	
  88

  
	
  Section 8.13.

  	
   

  	
  Governing Law

  	
   

  	
  89

  
	
  Section 8.14.

  	
   

  	
  Reallocation and Assignment of Existing Facility

  	
   

  	
  89

  
	
  Section 8.15.

  	
   

  	
  Effect of this Agreement

  	
   

  	
  89

  
	
  Section 8.16.

  	
   

  	
  No Advisory or Fiduciary Responsibility

  	
   

  	
  90

  
	
  Section 8.17.

  	
   

  	
  Patriot Act Notice

  	
   

  	
  90

  
	
  Section 8.18

  	
   

  	
  Waiver of Jury Trial

  	
   

  	
  90

  

 

 iii
 

SCHEDULES

	
  Schedule A

  	
   

  	
  -

  	
   

  	
  Existing Letter of Credit

  
	
  Schedule I

  	
   

  	
  -

  	
   

  	
  Commitments and Applicable Lending Offices

  
	
  Schedule II

  	
   

  	
  -

  	
   

  	
  Subsidiary Guarantors

  
	
  Schedule 4.01(a)

  	
   

  	
  -

  	
   

  	
  Loan Parties

  
	
  Schedule 4.01(b)

  	
   

  	
  -

  	
   

  	
  Subsidiaries

  
	
  Schedule 4.01(d)

  	
   

  	
  -

  	
   

  	
  Authorizations, Approvals, Actions, Notices and
  Filings

  
	
  Schedule 4.01(f)

  	
   

  	
  -

  	
   

  	
  Disclosed Litigation

  
	
  Schedule 4.01(o)

  	
   

  	
  -

  	
   

  	
  Plans, Multiemployer Plans and Welfare Plans

  
	
  Schedule 4.01(p)

  	
   

  	
  -

  	
   

  	
  Environmental Disclosure

  
	
  Schedule 4.01(q)

  	
   

  	
  -

  	
   

  	
  Open Years

  
	
  Schedule 4.01(s)

  	
   

  	
  -

  	
   

  	
  Existing Debt

  
	
  Schedule 4.01(t)

  	
   

  	
  -

  	
   

  	
  Surviving Debt

  
	
  Schedule 4.01(u)

  	
   

  	
  -

  	
   

  	
  Liens

  
	
  Schedule 4.01(v)

  	
   

  	
  -

  	
   

  	
  Investments

  
	
  Schedule 4.01(w)

  	
   

  	
  -

  	
   

  	
  Intellectual Property

  

 

EXHIBITS

	
  Exhibit A

  	
   

  	
  -

  	
   

  	
  Form of Revolving Credit Note

  
	
  Exhibit B

  	
   

  	
  -

  	
   

  	
  Form of Notice of Borrowing

  
	
  Exhibit C

  	
   

  	
  -

  	
   

  	
  Form of Assignment and Assumption

  
	
  Exhibit D

  	
   

  	
  -

  	
   

  	
  Form of Security Agreement

  
	
  Exhibit E

  	
   

  	
  -

  	
   

  	
  Form of Subsidiary Guaranty

  
	
  Exhibit F

  	
   

  	
  -

  	
   

  	
  Form of Solvency Certificate

  
	
  Exhibit G-1

  	
   

  	
  -

  	
   

  	
  Form of Opinion of Barrett & McNagny, LLC,
  Counsel to the Loan Parties

  
	
  Exhibit G-2

  	
   

  	
  -

  	
   

  	
  Form of Opinion of Greenberg Traurig LLP, Counsel to
  the Loan Parties

  

 

 iv

Execution Copy

AMENDED AND RESTATED CREDIT AGREEMENT

This AMENDED AND RESTATED CREDIT AGREEMENT dated as of
June 19, 2007 among Steel Dynamics, Inc., an Indiana corporation (the “Borrower”), the
banks, financial institutions and other lenders listed on the signature pages
hereof as the Initial Lenders (the “Initial Lenders”), National City Bank (“National City”) as the Initial
Issuing Bank (the “Initial
Issuing Bank” and, together with the Initial Lenders, the “Initial Lender Parties”),
the Swing Line Bank (as hereinafter defined), National City, as collateral
agent (together with any successor collateral agent appointed pursuant to
Article VII, in such capacity, the “Collateral Agent”), and National City and
Wells Fargo Bank, National Association (“Wells Fargo”),
as co-administrative agents (together with any successor administrative agents
appointed pursuant to Article VII, in such capacity, the “Administrative Agents”
and, together with the Collateral Agent and the Paying Agent (as defined
herein), the “Agents”),
for the Lender Parties (as hereinafter defined), Bank of America, N.A. (“Bank of America”), General Electric
Capital Corporation (“GECC”),
Fifth Third Bank and BMO Capital Markets Financing, Inc., as Documentation
Agents, Bank of America and National City, as Syndication Agents, and Banc of
America Securities LLC (“BAS”) and
National City, as Joint Lead Arrangers (in such capacity, the “Joint Lead Arrangers”).

PRELIMINARY STATEMENTS:

(1)                                  The
Borrower entered into that certain Credit Agreement dated as of September 7,
2005 (as amended, supplemented or otherwise modified through the date hereof,
the “Existing Credit Agreement”) with the
lenders party thereto from time to time, National City, as agent for the
lenders party thereto and Morgan Stanley Senior Funding, Inc. (“Morgan Stanley”) and BAS as Joint
Lead Arrangers and Morgan Stanley as the syndication agent thereunder, pursuant
to which the lenders thereunder (the “Existing Lenders”)
were committed to make extensions of credit to the Borrower on the terms and
conditions set forth therein, including: (a) $350,000,000 in revolving credit
loans, (b) a $30,000,000 letter of credit sublimit, including existing letters
of credit separately issued by Harris N.A. under the Existing Credit Agreement
and listed on Schedule A hereto (the “Existing Letters of Credit”)
and (c) a $20,000,000 swingline subfacility (together with the existing
revolving credit facility and the Existing Letters of Credit, the “Existing Facility”).

(2)                                  The
Borrower desires to refinance and/or rollover the amounts outstanding under the
Existing Facility (the “Refinancing”).

(3)                                  In
order to effect the Refinancing and to finance certain ongoing working capital
and general corporate needs of the Borrower and the Subsidiary Guarantors, the
Borrower desires to, among other things, increase the commitment to make
revolving loans to an aggregate principal amount of up to $750,000,000,
increase the letter of credit sublimit to an aggregate amount at any time
outstanding of up to $100,000,000, increase the swingline subfacility to an
aggregate principal amount of $40,000,000 and obtain Commitments to make Loans
and other Credit Extensions as set forth herein.

(4)                                  In
connection with the foregoing, the Borrower has requested that the Existing
Credit Agreement be amended and restated in its entirety to become effective
and

binding on the Borrower pursuant to the terms hereof,
and the Lenders (including the Existing Lenders that are parties hereto) have
agreed (subject to the terms of this Agreement) to amend and restate the
Existing Credit Agreement in its entirety to read as set forth herein, and it
has been agreed by the parties hereto that (a) the commitments which the
Existing Lenders that are parties hereto extended to the Borrower under the
Existing Credit Agreement and the commitments of new Lenders that become
parties hereto shall be extended or advanced upon the amended and restated
terms and conditions contained in this Agreement and (b) to the extent the
other Obligations outstanding under the Existing Credit Agreement are not
refinanced in connection with the Refinancing, such Obligations shall be
governed by and deemed to be outstanding under the amended and restated terms
and conditions contained herein.

(5)                                  All
existing Obligations that are not refinanced in connection with the
Refinancing, are and shall continue to be (and all Obligations incurred
pursuant hereto shall be) secured by, among other things, the Collateral
Documents.

NOW, THEREFORE, the parties hereto hereby agree to
amend and restate the Existing Credit Agreement, and the Existing Credit
Agreement is hereby amended and restated, in its entirety as follows:

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):

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

“Advance”
means, a Revolving Credit Advance, a Swing Line 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 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 5% or more of the Voting
Interests of such Person or to direct or cause the direction of the management
and policies of such Person, whether through the ownership of Voting Interests,
by contract or otherwise.

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

“Agreement”
means, on any date, the Existing Credit Agreement, as amended and restated by
this Amended and Restated Credit Agreement and as hereafter from time to time
further amended, supplemented, amended and restated or otherwise modified from
time to time and in effect on such date.

 2
 

“Agreement
Value” means, for each Hedge Agreement, on any date of
determination, an amount equal to: 
(a) in the case of a Hedge Agreement documented pursuant to the
Master Agreement (Multicurrency-Cross Border) published by the International
Swap and Derivatives Association, Inc. (the “Master Agreement”), the amount, if any,
that would be payable by any Loan Party or any of its Subsidiaries to its
counterparty to such Hedge Agreement, as if (i) such Hedge Agreement was
being terminated early on such date of determination, and (ii) such Loan
Party or Subsidiary was the sole “Affected Party”; or (b) in the case of a
Hedge Agreement traded on an exchange, the mark-to-market value of such Hedge
Agreement, which will be the unrealized loss on such Hedge Agreement to the
Loan Party or Subsidiary of a Loan Party party to such Hedge Agreement based on
the settlement price of such Hedge Agreement on such date of determination; or
(c) in all other cases, the mark-to-market value of such Hedge Agreement,
which will be the unrealized loss on such Hedge Agreement to the Loan Party or
Subsidiary of a Loan Party party to such Hedge Agreement as the amount, if any,
by which (i) the present value of the future cash flows to be paid by such
Loan Party or Subsidiary exceeds (ii) the present value of the future cash
flows to be received by such Loan Party or Subsidiary pursuant to such Hedge
Agreement; capitalized terms used and not otherwise defined in this definition
shall have the respective meanings set forth in the above described Master
Agreement.

“Applicable
Lending Office” means, with respect to each Lender Party, such
Lender Party’s Domestic Lending Office in the case of a Base Rate Advance and
such Lender Party’s Eurodollar Lending Office in the case of a Eurodollar Rate
Advance.

“Applicable
Margin” means, on the Effective Date, 0.00% per annum for Base
Rate Advances and 0.50% per annum for Eurodollar Rate Advances, and thereafter,
a percentage per annum determined by reference to the Total Debt/Consolidated
EBITDA Ratio as set forth below:

	
   

  	
   

  	
  Base Rate Advances

  	
   

  	
  Eurodollar Rate Advances

  	
   

  
	
  Level I

  < than 2.0 : 1.0

  	
   

  	
  0.00

  	
  %

  	
  0.50

  	
  %

  
	
  Level II

  >
  2.0 : 1.0, but < than 3.0 : 1.0

  	
   

  	
  0.00

  	
  %

  	
  0.75

  	
  %

  
	
  Level III

  >
  3.0 : 1.0, but < than 4.0 : 1.0

  	
   

  	
  0.00

  	
  %

  	
  1.00

  	
  %

  
	
  Level IV

  > 4.0
  : 1.0

  	
   

  	
  0.25

  	
  %

  	
  1.25

  	
  %

  

 

The Applicable Margin for each Base Rate Advance and
the Applicable Margin for each Eurodollar Rate Advance shall be determined by
reference to the ratio in effect from time to time as reflected in the
financial statements most recently delivered pursuant to Section 5.03(b) or
(c), as the case may be; provided,
however, that in any event,
(a) no change in the Applicable Margin shall be effective until three
Business Days after the date on which the Paying Agent receives the financial
statements required to be delivered pursuant to Section 5.03(b) or (c), as
the case may be, and a certificate of the Financial Officer of the

 3
 

Borrower demonstrating such ratio, and (b) the
Applicable Margin shall be at Level IV for so long as the Borrower has not
submitted to the Paying Agent the information described in clause (a) of
this proviso as and when required under Section 5.03(b) or (c), as the
case may be.

“Applicable
Percentage” means, as of any date, a percentage per annum
determined by reference to the Total Debt/Consolidated EBITDA Ratio as set
forth below:

	
  

  	
   

  	
  Applicable Percentage

  	
   

  
	
  Level I

  < than 2.0 :
  1.0

  	
   

  	
  0.125

  	
  %

  
	
  Level II

  >
  2.0 : 1.0, but < than 3.0 : 1.0

  	
   

  	
  0.175

  	
  %

  
	
  Level III

  >
  3.0 : 1.0, but < than 4.0 : 1.0

  	
   

  	
  0.225

  	
  %

  
	
  Level IV

  >
  4.0 : 1.0

  	
   

  	
  0.30

  	
  %

  

 

It is understood and agreed that (a) no change in
the Applicable Percentage shall be effective until three Business Days after
the date on which the Paying Agent receives the financial statements required
to be delivered pursuant to Section 5.03(b) or (c), as the case may be,
and a certificate of the Financial Officer of the Borrower demonstrating such
ratio, and (b) the Applicable Percentage shall be at Level IV for so long
as the Borrower has not submitted to the Paying Agent the information described
in clause (a) as and when required under Section 5.03(b) or (c), as
the case may be.

“Appropriate
Lender” means, at any time, with respect to (a) the
Revolving Credit Facility, a Lender that has a Commitment with respect to such
Facility at such time, (b) the Letter of Credit Facility, (i) any
Issuing Bank and (ii) if the other Revolving Credit Lenders have made
Letter of Credit Advances pursuant to Section 2.03(c) that are outstanding
at such time, each such other Revolving Credit Lender and (c) the Swing
Line Facility, (i) the Swing Line Bank and (ii) if the other
Revolving Credit Lenders have made Swing Line Advances pursuant to
Section 2.02(b) that are outstanding at such time, each such other
Revolving Credit Lender.

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

“Assignment
and Assumption” means, an assignment and assumption entered into
by a Lender Party and an Eligible Assignee, and (to the extent required)
accepted by the Paying Agent, in accordance with Section 8.07 and in
substantially the form of Exhibit C hereto.

“Auction Rate Notes”
means, a floating-rate note with an interest rate that is reset on the basis of
bids received at a “Dutch auction” conducted near
or at the end of each rate period.

 4
 

“Available
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 (assuming
compliance at such time with all conditions to drawing).

“Bank of America”
has the meaning specified in the recitals of parties to this Agreement.

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

“Base
Rate” means, a fluctuating interest rate per annum in effect
from time to time, which rate per annum shall at all times be equal to the
higher of:

(a)                                  the
Prime Rate; and

(b)                                 1/2
of 1% per annum above the Federal Funds Rate.

If for any reason the Paying Agent shall have
determined (which determination shall be conclusive absent manifest error) that
it is unable to ascertain the Federal Funds Rate, including the inability or
failure of the Paying Agent to obtain sufficient quotations in accordance with
the terms thereof, the Base Rate shall be determined without regard to
clause (b) of this definition, until the circumstances giving rise to such
inability no longer exist.  Any change in
the Base Rate due to a change in the Prime Rate or the Federal Funds Rate shall
be effective on the effective date of such change.

“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 Harris N.A., as confirmed in writing by the Borrower to the
Paying Agent, or such other account as the Borrower shall specify in writing to
the Paying Agent.

“Borrowing”
means, a Revolving Credit Borrowing or a Swing Line Borrowing.

“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, a day on which dealings are carried on
in the London interbank market.

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

“Cash
Equivalents” means, any of the following, to the extent owned by
the Borrower or any of the Subsidiary Guarantors free and clear of all Liens
other than Liens created under the Collateral Documents and having a maturity
of not greater than 180 days from the date of acquisition thereof:  (a) readily marketable direct
obligations of the Government of the United States or any agency or
instrumentality thereof or obligations unconditionally guaranteed by the

 5
 

full faith and credit of the Government of the United
States, (b) certificates of deposit of or time deposits with any
commercial bank that is a Lender Party or a member of the Federal Reserve
System, issues (or the parent of which issues) commercial paper rated as
described in clause (c) below, is organized under the laws of the United
States or any State thereof and has combined capital and surplus of at least $1
billion, (c) commercial paper in an aggregate amount of no more than
$15,000,000 per issuer outstanding at any time, issued by any corporation
organized under the laws of any State of the United States and rated at least “Prime-2”
(or the then equivalent grade) by Moody’s Investors Service, Inc. or “A-2” (or
the then equivalent grade) by Standard & Poor’s, a division of The
McGraw-Hill Companies, Inc., (d) Investments, classified in accordance
with GAAP as current assets of the Borrower or any of its Subsidiaries, in
money market investment programs registered under the Investment Company Act of
1940, as amended, which are administered by financial institutions that have
the highest rating obtainable from either Moody’s or S&P or (e) Auction
Rate Notes with a maximum time between interest rate resets of one month and a
rating of at least A by Moody’s or A by S&P, and the portfolios of which
are limited solely to Investments of the character, quality and maturity
described in clauses (a), (b) and (c) of this definition.

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

“CERCLIS”
means, the Comprehensive Environmental Response, Compensation and Liability
Information System maintained by the U.S. Environmental Protection Agency.

“Change
of Control” means, the occurrence of any of the following:  (a) any Person or two or more Persons
acting in concert shall have acquired beneficial ownership (within the meaning
of Rule 13d-3 of the Securities and Exchange Commission under the Securities
Exchange Act of 1934), directly or indirectly, of Voting Interests of the
Borrower (or other securities convertible into such Voting Interests)
representing 35% or more of the combined voting power of all Voting Interests
of the Borrower; (b) individuals who on the Effective Date constitute the
board of directors of the Borrower (together with any new directors whose
election by the board of directors of the Borrower or whose nomination by the
board of directors of the Borrower for election by the Borrower’s stockholders
was approved by a vote of at least two-thirds of the members of the board of
directors of the Borrower then in office who either were members of the board
of directors of the Borrower on the Effective Date or whose election or
nomination for election was previously so approved) cease for any reason to
constitute a majority of the members of the board of directors of the Borrower
then in office; (c) any Person or two or more Persons acting in concert
shall have acquired by contract or otherwise, or shall have entered into a
contract or arrangement that, upon consummation, will result in its or their
acquisition of the power to exercise, directly or indirectly, a controlling
influence over the management or policies of the Borrower or (d) any “Change
of Control” or “Change in Control” as defined in the Indenture or under any
other Indebtedness permitted under this Agreement.

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

 6
 

“Collateral”
means, all “Collateral” referred to in the Collateral Documents and all other
property that is or is intended to be subject to any Lien in favor of the
Collateral Agent for the benefit of the Secured Parties which, for the
avoidance of doubt, shall include the Subject Property.

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

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

“Commitment”
means, Revolving Credit Commitment or a Letter of Credit Commitment.

“Confidential
Information” has the meaning specified in Section 8.10.

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

“Contingent
Obligation” means, with respect to any Person, any Obligation or
arrangement of such Person to guarantee or intended to guarantee any Debt,
leases, dividends or other payment Obligations (“primary obligations”) of any other
Person (the “primary
obligor”) in any manner, whether directly or indirectly,
including, without limitation, (a) the direct or indirect guarantee,
endorsement (other than for collection or deposit in the ordinary course of
business), co-making, discounting with recourse or sale with recourse by such
Person of the Obligation of a primary obligor, (b) the Obligation to make
take-or-pay or similar payments, if required, regardless of nonperformance by
any other party or parties to an agreement (other than Obligations to make
take-or-pay or similar payments pursuant to contracts entered into by such
Person in the ordinary course of business not inconsistent with the prior
practice of such Person) or (c) any Obligation of such Person, whether or
not contingent, (i) to purchase any such primary obligation or any
property constituting direct or indirect security therefor, (ii) to
advance or supply funds (A) for the purchase or payment of any such
primary obligation or (B) to maintain working capital or equity capital of
the primary obligor or otherwise to maintain the net worth or solvency of the primary
obligor, (iii) to purchase property, assets, securities or services
primarily for the purpose of assuring the owner of any such primary obligation
of the ability of the primary obligor to make payment of such primary
obligation or (iv) otherwise to assure or hold harmless the holder of such
primary obligation against loss in respect thereof.  The amount of any Contingent Obligation shall
be deemed to be an amount equal to the stated or determinable amount of the
primary obligation in respect of which such Contingent Obligation is made (or,
if less, the maximum amount of such primary obligation for which such Person
may be liable pursuant to the terms of the instrument evidencing such
Contingent Obligation) or, if not stated or determinable, the maximum
reasonably anticipated liability in respect thereof (assuming such Person is
required to perform thereunder), as determined by such Person in good faith.

“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.

 7
 

“Convertible
Notes Documents” means the 4% convertible subordinated notes
issued December 23, 2002 due 2012 in an aggregate principal amount of $115
million, the current outstanding principal balance of which is now $37.5
million, and all agreements, documents, indentures and instruments pursuant to
which such notes are issued, in each case as amended, to the extent permitted
under the Loan Documents.

“Debt”
of any Person means, without duplication, (a) all indebtedness of such
Person for borrowed money, (b) all Obligations of such Person for the
deferred purchase price of property or services (other than trade payables not
overdue by more than 60 days incurred in the ordinary course of such Person’s
business), (c) all Obligations of such Person evidenced by notes, bonds,
debentures or other similar instruments, (d) all 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), (e) all
Obligations of such Person as lessee under Capitalized Leases, (f) all
Obligations of such Person under acceptance, letter of credit or similar
facilities, (g) all Obligations of such Person to purchase, redeem,
retire, defease or otherwise make any payment in respect of any Equity
Interests in such Person or any other Person or any warrants, rights or options
to acquire such capital stock, valued, in the case of Redeemable Preferred
Interests, at the greater of its voluntary or involuntary liquidation
preference plus accrued and unpaid dividends, (h) all Obligations of such
Person in respect of Hedge Agreements, valued at the Agreement Value thereof,
(i) all Contingent Obligations of such Person and (j) all
indebtedness and other payment Obligations referred to in clauses (a)
through (i) 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 indebtedness or other payment Obligations.

“Debt
for Borrowed Money” of any Person means, without duplication,
all items described in clauses (a), (c), (e), (f) and, to the extent it
supports an obligation of the type described in any of clauses (a), (c),
(e) and (f), any item described in clause (i) or (j), in each case of the
definition of Debt.

“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.

“Default
Termination Notice” has the meaning specified in
Section 2.01(e).

“Defaulted
Advance” means, with respect to any Lender Party at any time,
the portion of any Advance 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 Paying Agent for the account
of such Lender Party pursuant to Section 2.02(e) 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.

 8
 

“Defaulted
Amount” means, with respect to any Lender Party at any time, any
amount required to be paid by such Lender Party to any Agent or any other
Lender Party hereunder or under any other Loan Document at or prior to such
time that 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 Swing Line
Bank pursuant to Section 2.02(b) to purchase a portion of a Swing Line
Advance made by the Swing Line Bank, (b) any Issuing Bank pursuant to
Section 2.03(c) to purchase a portion of a Letter of Credit Advance made
by such Issuing Bank, (c) the Paying Agent pursuant to
Section 2.02(e) to reimburse the Paying Agent for the amount of any
Advance made by the Paying Agent for the account of such Lender Party,
(d) any other Lender Party pursuant to Section 2.13 to purchase any
participation in Advances owing to such other Lender Party and (e) any
Agent or any Issuing Bank pursuant to Section 7.05 to reimburse such Agent
or such Issuing Bank for such Lender Party’s ratable share of any amount
required to be paid by the Lender Parties to such Agent 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 (b) shall take
any action or be the subject of any action or proceeding of a type described in
Section 6.01(f).

“Disclosed
Litigation” has the meaning specified in Section 3.01(f).

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

“Domestic
Lending Office” means, with respect to any Lender Party, the
office of such Lender Party specified as its “Domestic Lending Office” opposite
its name on Schedule I hereto or in the Assignment and Assumption 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 Paying Agent.

“EBITDA”
means, for any period, the sum, determined on a Consolidated basis, of
(a) net income (or net loss) excluding any extraordinary, unusual or
nonrecurring gains and any extraordinary, unusual or nonrecurring losses
comprised of Non-Cash Charges, (b) interest expense, (c) income tax
expense, (d) depreciation expense and (e) amortization expense, in
each case of the Borrower and its Subsidiaries, determined in accordance with
GAAP for such period (and, in the case of clauses (b) through (e), to the
extent deducted in determining the net income described in clause (a)).

“Effective
Date” means, the first date on which the conditions set forth in
Article III shall have been satisfied.

“Eligible
Assignee” means, any commercial bank or financial institution
(including, without limitation any Approved Fund) as approved by the Joint Lead
Arrangers and, so long as no Default or Event of Default has occurred and is
continuing at the time of such

 9
 

assignment, by the Borrower (such approvals not to be
unreasonably withheld or delayed); provided,
however, that (a) neither
any Loan Party nor any Affiliate of a Loan Party shall qualify as an Eligible
Assignee under this definition and (b) no approval of the Administrative
Agents or the Borrower shall be required for assignments to Affiliates or
Approved Funds of Lender Parties or for assignments to Lenders.

“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, and the regulations promulgated and rulings issued thereunder.

“ERISA
Affiliate” means, any Person that for purposes of Title IV of
ERISA is a member of the controlled group of any Loan Party, or under common
control with any Loan Party, within the meaning of Section 414 of the
Internal Revenue Code.

“ERISA
Event” means, (a) (i) the occurrence of a reportable event,
within the meaning of Section 4043 of ERISA, with respect to any Plan
unless the 30-day notice requirement with respect to such event has been waived
by the PBGC or (ii) the requirements of Section 4043(b) of ERISA
apply with respect to a contributing sponsor, as defined in Section 4001(a)(13)
of ERISA, of a Plan, and an event described in paragraph (9), (10), (11),

 10
 

(12) or (13) of Section 4043(c) of ERISA is
reasonably expected to occur with respect to such Plan within the following 30
days; (b) the application for a minimum funding waiver with respect to a
Plan; (c) the provision by the administrator of any Plan of a notice of
intent to terminate such Plan, pursuant to Section 4041(a)(2) of ERISA
(including any such notice with respect to a plan amendment referred to in
Section 4041(e) of ERISA); (d) the cessation of operations at a
facility of any Loan Party or any ERISA Affiliate in the circumstances
described in Section 4062(e) of ERISA; (e) the withdrawal by any Loan
Party or any ERISA Affiliate from a Multiple Employer Plan during a plan year
for which it was a substantial employer, as defined in Section 4001(a)(2)
of ERISA; (f) the conditions for imposition of a lien under
Section 302(f) of ERISA shall have been met with respect to any Plan;
(g) the adoption of an amendment to a Plan requiring the provision of
security to such Plan pursuant to Section 307 of ERISA; or (h) the
institution by the PBGC of proceedings to terminate a Plan pursuant to
Section 4042 of ERISA, or the occurrence of any event or condition
described in Section 4042 of ERISA that constitutes grounds for the
termination of, or the appointment of a trustee to administer, such Plan.

“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
Lending Office” means, with respect to any Lender Party, the
office of such Lender Party specified as its “Eurodollar Lending Office”
opposite its name on Schedule I hereto or in the Assignment and Assumption
pursuant to which it became a Lender Party (or, if no such office is specified,
its Domestic Lending Office), or such other office of such Lender Party as such
Lender Party may from time to time specify to the Borrower and the Paying
Agent.

“Eurodollar
Rate” means, for any Interest Period, an interest rate per annum
equal to the rate per annum obtained by dividing (a) the rate per annum
(rounded upwards, if necessary, to the nearest 1/100 of 1%) appearing on the
page of the Telerate screen (or any successor page) that displays an average
British Bankers Association Interest Settlement Rate for deposits in Dollars
(for delivery on the first day of such Interest Period) with a term equivalent
to such Interest Period, determined as of approximately 11:00 A.M. (London
time) two Business Days before the first day of such Interest Period (provided that, if for any reason such
rate does not appear on such page or service or such page or service shall not
be available, the term “Eurodollar Rate” shall mean the rate per annum (rounded
upwards, if necessary, to the nearest 1/100 of 1%) equal to the rate determined
by the Paying Agent to be the offered rate on such other page or other service
that displays an average British Bankers Association Interest Settlement Rate
for deposits in Dollars (for delivery on the first day of such Interest Period)
with a term equivalent to such Interest Period, determined as of approximately
11:00 A.M. (London time) two Business Days prior to the first day of such
Interest Period) by (b) a percentage equal to 100% minus the Eurodollar
Rate Reserve Percentage for such Interest Period.

“Eurodollar
Rate Advance” means, an 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

 11
 

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.

“Excluded
Subsidiary” means each of Paragon Steel Enterprises LLC, an
Indiana limited liability company, STLD Holdings, Inc., an Indiana corporation,
and Dynamic Aviation LLC, an Indiana limited liability company, each of their
respective direct and indirect subsidiaries and each other Subsidiary of the
Borrower designated by the Borrower as an Excluded Subsidiary by written notice
to the Joint Lead Arrangers in accordance with Section 5.01(j); provided
that, in the event any Excluded Subsidiary guarantees any Indebtedness of the
Borrower or any Subsidiary Guarantor (other than the Obligations set forth
herein), then such Subsidiary shall be required to execute and deliver a guaranty
and a security agreement supplement and all other necessary documents in
accordance with Section 5.01(j), and such Excluded Subsidiary shall be
considered a Subsidiary Guarantor  (and
cease to be an Excluded Subsidiary) for all purposes set forth herein.

“Existing
Credit Agreement” has the meaning specified in the Preliminary
Statements hereto.

“Existing Facility”
has the meaning specified in the Preliminary Statements hereto.

“Existing
Debt” means, the Debt of each Loan Party and its Subsidiaries outstanding
immediately before giving effect to the consummation of the Transaction.

“Existing Lenders”
has the meaning specified in the Preliminary Statements hereto.

“Existing Letters of Credit”
has the meaning specified in the Preliminary Statements hereto.

“Extraordinary
Receipt” means, any cash received by or paid to or for the
account of any Person not in the ordinary course of business, consisting of
proceeds of insurance, condemnation awards (and payments in lieu thereof) and
indemnity payments, in each case, with respect to assets constituting
Collateral; provided, however, that an Extraordinary
Receipt shall not include cash receipts received from proceeds of insurance,
condemnation awards (or payments in lieu thereof) or indemnity payments to the
extent that such proceeds, awards or payments (a) in respect of loss or damage
to inventory are applied (or in respect of which expenditures were previously
incurred) to replace or repair the inventory in respect of which such proceeds
were received in accordance with the terms of the Loan Documents, so long as
such application is made within 12 months after the occurrence of such damage
or loss or (b) are

 12
 

received by any Person in respect of any third party
claim against such Person and applied to pay (or to reimburse such Person for
its prior payment of) such claim and the costs and expenses of such Person with
respect thereto.

“Facility”
means, the Revolving Credit Facility, the Swing Line Facility or the Letter of
Credit Facility.

“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 (rounded upwards, if necessary, to
the next higher 1/100th of 1%) of the quotations for such day for such
transactions received by the Paying Agent from three Federal funds brokers of
recognized standing selected by it.

“Fee
Letter” means, the fee letter dated May 21, 2007 between the Borrower
and the Joint Lead Arrangers, as amended, supplemented or otherwise modified
from time to time.

“Financial
Officer” means, any of the Chief Executive Officer, the Chief
Financial Officer, the Chief Accounting Officer and the Corporate
Controller/Assistant Secretary.

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

“Funded
Debt” of any Person means, Debt in respect of the Advances, in
the case of the Borrower, and all other Debt of such Person that by its terms
matures more than one year after the date of determination or matures within
one year from such date but is renewable or extendible, at the option of such
Person, to a date more than one year after such date or arises under a
revolving credit or similar agreement that obligates the lender or lenders to
extend credit during a period of more than one year after such date, including,
without limitation, all amounts of Funded Debt of such Person required to be
paid or prepaid within one year after the date of determination.

“GAAP”
has the meaning specified in Section 1.03.

“Guaranties”
means, collectively, each Subsidiary Guaranty entered into from time to time.

“Guarantors”
means, the Subsidiary Guarantors.

“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.

 13
 

“Hedge
Agreements” means, interest rate swap, cap or collar agreements,
interest rate future or option contracts, currency swap agreements, currency
future or option contracts and other hedging agreements.

“Hedge
Bank” means, any Lender Party or an Affiliate of a Lender Party
in its capacity as a party to a Secured Hedge Agreement.

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

“Indenture”
means, the Indenture dated as of April 3, 2007 and entered into by and among
the Borrower, SDI Investment Company, a Delaware corporation, as guarantor, the
other guarantors set forth therein and The Bank of New York, as trustee, as
such Indenture may be amended, supplemented or otherwise modified from time to
time in accordance herewith and therewith.

“Information
Memorandum” means, the confidential information memorandum dated
[May], 2007 used by the Joint Lead Arrangers in connection with the syndication
of the Commitments.

“Initial
Extension of Credit” means, the earlier to occur of the initial
Borrowing and the initial issuance of a Letter of Credit hereunder.

“Initial
Issuing Bank”, “Initial Lender Parties” and “Initial Lenders” each
has the meaning specified in the recital of parties to this Agreement.

“Interest
Coverage Ratio” means, at any date of determination, the ratio
of (a) Consolidated EBITDA to (b) interest payable on, and amortization of debt
discount in respect of, all Debt for Borrowed Money, in each case, of or by the
Borrower and its Subsidiaries during the four consecutive fiscal quarters most
recently ended for which financial statements are required to be delivered to
the Lender Parties pursuant to Section 5.03(b) or (c), as the case may be.

“Insufficiency”
means, with respect to any Plan, the amount, if any, of its unfunded benefit
liabilities, as defined in Section 4001(a)(18) of ERISA.

“Interest
Period” means, for each Eurodollar Rate Advance comprising part
of the same Borrowing, the period commencing on the date of such Eurodollar
Rate Advance or the date of the Conversion of any Base Rate Advance into such
Eurodollar Rate Advance, and ending on the last day of the period selected by
the Borrower pursuant to the provisions below and, thereafter, each subsequent
period commencing on the last day of the immediately preceding Interest Period
and ending on the last day of the period selected by the Borrower pursuant to
the provisions below.  The duration of
each such Interest Period shall be one, two, three or six months, as the
Borrower may, upon notice received by the Paying Agent not later than 11:00
A.M. (New York City time) on the third Business Day prior to the first day of
such Interest Period, select; provided,
however, that:

(a)                                  the
Borrower may not select any Interest Period with respect to any Eurodollar Rate
Advance under a Facility that ends after any principal repayment installment
date for such Facility unless, after giving effect to such selection, the

 14
 

aggregate principal amount
of Base Rate Advances and of Eurodollar Rate Advances having Interest Periods
that end on or prior to such principal repayment installment date for such
Facility shall be at least equal to the aggregate principal amount of Advances
under such Facility due and payable on or prior to such date;

(b)                                 Interest
Periods commencing on the same date for Eurodollar Rate Advances comprising
part of the same Borrowing shall be of the same duration;

(c)                                  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;

(d)                                 whenever
the first day of any Interest Period occurs on a day of an initial calendar
month for which there is no numerically corresponding day in the calendar month
that succeeds such initial calendar month by the number of months equal to the
number of months in such Interest Period, such Interest Period shall end on the
last Business Day of such succeeding calendar month; and

(e)                                  at
any one time no more than twelve (12) different Interest Periods shall be in
effect.

“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, all Inventory referred to in Section 1(b) of the Security
Agreement.

“Investment”
in any Person means, any loan or advance to such Person, any purchase or other
acquisition of any Equity Interests or Debt or the assets comprising a division
or business unit or a substantial part or all of the business of such Person,
any capital contribution to such Person or any other direct or indirect
investment in such Person, including, without limitation, any acquisition by
way of a merger or consolidation and any arrangement pursuant to which the
investor incurs Debt of the types referred to in clause (i) or (j) of the
definition of “Debt”
in respect of such Person.

“Issuing
Bank” means, the Initial Issuing Bank, any other financial
institution approved as an Issuing Bank by the Paying Agent and the Borrower,
any Eligible Assignee to which all or a portion of a Letter of Credit
Commitment hereunder has been assigned pursuant to Section 8.07 so long as
such Eligible Assignee expressly agrees to perform in accordance with their
terms all of the obligations that by the terms of this Agreement are required
to be performed by it as an Issuing Bank and notifies the Paying Agent of its
assumption of such duties, for so long as such Initial Issuing Bank, financial
institution or Eligible Assignee, as the case may be, shall have a Letter of
Credit Commitment and in any case with respect to the Existing Letters of
Credit, Harris N.A.

 15
 

“Joint Lead Arrangers”
has the meaning specified in the recitals of parties to this Agreement.

“L/C
Cash Collateral Account” has the meaning specified in the
Security Agreement.

“L/C
Related Documents” has the meaning specified in
Section 2.04(e)(ii).

“Lender
Party” means, any Lender, any Issuing Bank or the Swing Line
Bank.

“Lenders”
means, the Initial Lenders and each Person that shall become a Lender hereunder
pursuant to Section 8.07 for so long as such Initial Lender or Person, as
the case may be, shall be a party to this Agreement.

“Letter
of Credit Advance” means, an advance made by any Issuing Bank or
any Revolving Credit Lender pursuant to Section 2.03(c).

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

“Letter
of Credit Commitment” means, with respect to any Issuing Bank at
any time, the amount set forth opposite such Issuing Bank’s name on
Schedule I hereto under the caption “Letter of Credit
Commitment” or, if such Issuing Bank or a subsequent Issuing
Bank has entered into an Assignment and Assumption, set forth for each such
Issuing Bank in the Register maintained by the Paying Agent pursuant to
Section 8.07(d) as such Issuing Bank’s “Letter
of Credit Commitment”, as such amount may be reduced at or prior
to such time pursuant to Section 2.05.

“Letter
of Credit Facility” means, at any time, an amount equal to the
lesser of (a) the aggregate amount of the Issuing Banks’ Letter of Credit
Commitments at such time and (b) $100,000,000, as such amount may be
reduced at or prior to such time pursuant to Section 2.05.

“Letters
of Credit” means, collectively, (a) the letters of credit issued
pursuant to Section 2.01(c) hereof from time to time and (b) the Existing
Letters of Credit.

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

“Loan
Documents” means, (a) for purposes of this Agreement and
the Notes and any amendment, supplement or modification hereof or thereof,
(i) this Agreement, (ii) the Notes, (iii) the Guaranties,
(iv) the Collateral Documents, (v) the Fee Letter and (vi) each
Letter of Credit Agreement and (b) for purposes of the Guaranties and the
Collateral Documents and for all other purposes other than for purposes of this
Agreement and the Notes, (i) this Agreement, (ii) the Notes,
(iii) the Guaranties, (iv) the Collateral Documents, (v) the Fee
Letter, (vi) each Letter of Credit Agreement, (vii) each Secured
Hedge Agreement and (viii) each Secured Cash Management Agreement, in each
case as amended.

 16
 

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

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

“Material
Adverse Change” means, any material adverse change in the
business, condition (financial or otherwise), operations, performance,
properties or prospects of the Borrower or the Borrower and its Subsidiaries
taken as a whole.

“Material
Adverse Effect” means, a material adverse effect on (a) the
business, condition (financial or otherwise), operations, performance,
properties or prospects of the Borrower or the Borrower and its Subsidiaries,
taken as a whole, (b) the rights and remedies of any Agent or any Lender
Party under any Loan Document, (c) the ability of any Loan Party to
perform its Obligations under any Loan Document to which it is or is to be a
party or (d) the Transaction.

“Mesabi
Nugget” means, Mesabi Nugget, LLC, Mesabi Nugget Delaware, LLC
or their respective parents or Subsidiaries, including, without limitation, any
Excluded Subsidiary, involved directly or indirectly in the development,
application and use of the Itmk3 technology.

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

“Multiemployer
Plan” means, a multiemployer plan, as defined in
Section 4001(a)(3) of ERISA, to which any Loan Party or any ERISA
Affiliate is making or accruing an obligation to make contributions, or has
within any of the preceding five plan years made or accrued an obligation to
make contributions.

“Multiple
Employer Plan” means, a single employer plan, as defined in
Section 4001(a)(15) of ERISA, that (a) is maintained for employees of
any Loan Party or any ERISA Affiliate and at least one Person other than the
Loan Parties and the ERISA Affiliates or (b) was so maintained and in
respect of which any Loan Party or any ERISA Affiliate could have liability
under Section 4064 or 4069 of ERISA in the event such plan has been or
were to be terminated.

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

“Net
Cash Proceeds” means, with respect to any Extraordinary Receipt,
the aggregate amount of cash received in connection therewith.

“Non-Cash
Charges” means, with respect to the Borrower and its Subsidiaries,
for any period, the aggregate non-cash charges and expenses reducing net income
of the Borrower and its Subsidiaries for such period, all as determined on a
Consolidated basis; provided
that “Non-Cash Charges” shall not include any such charges that require an
accrual of or a reserve for cash for any future period.

 17
 

“Note”
means, a promissory note of the Borrower payable to the order of any Revolving
Credit Lender, in substantially the form of Exhibit A hereto, evidencing
the aggregate indebtedness of the Borrower to such Lender resulting from the
Revolving Credit Advances, Letter of Credit Advances and Swing Line Advances
made by such Lender, as amended, endorsed, extended or otherwise modified from
time to time.

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

“Notice
of Issuance” has the meaning specified in Section 2.03(a).

“Notice
of Renewal” has the meaning specified in Section 2.01(c).

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

“Notice
of Termination” has the meaning specified in
Section 2.01(c).

“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, and whether or not such claim is discharged, stayed or otherwise
affected by any proceeding referred to in Section 6.01(f).  Without limiting the generality of the
foregoing, the Obligations of any Loan Party under the Loan Documents include
(a) the obligation to pay principal, interest, Letter of Credit
commissions, charges, expenses, fees, attorneys’ fees and disbursements,
indemnities and other amounts payable by such Loan Party under any Loan
Document and (b) the obligation of such 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.

“Open
Year” has the meaning specified in Section 4.01(q)(ii).

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

“Patriot
Act” has the meaning specified in Section 8.14.

“Paying Agent”
means, National City, or any successor thereto in accordance with Article VII.

“Paying
Agent’s Account” means, the account of the Paying Agent maintained
by the Paying Agent at its offices in Cleveland, Ohio, as confirmed by the
Paying Agent in writing to the Lender Parties or such other account as the
Paying Agent shall specify in writing to the Lender Parties.

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

 18
 

“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); (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 securing obligations
that (i) are not overdue for a period of more than 30 days or otherwise
are contested in good faith and for which a bond shall have been posted in the
amount of such obligations and (ii) individually or together with all
other Permitted Liens outstanding on any date of determination do not
materially adversely affect the use of the property to which they relate; and
(c) pledges or deposits to secure obligations under workers’ compensation
laws or similar legislation or to secure public or statutory obligations.

“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.

“Plan”
means, a Single Employer Plan or a Multiple Employer Plan.

“Pledged
Debt” has the meaning specified in the Security Agreement.

“Pledged
Shares” has the meaning specified in the Security Agreement.

“Preferred
Interests” means, with respect to any Person, Equity Interests
issued by such Person that are entitled to a preference or priority over any
other Equity Interests issued by such Person upon any distribution of such
Person’s property and assets, whether by dividend or upon liquidation.

“Prime
Rate” means, the rate publicly quoted from time to time by
National City.  The “prime rate” is a
rate set by National City based upon various factors including National City’s
costs and desired return, general economic conditions and other factors, and is
used as a reference point for pricing some loans, which may be priced at,
above, or below such announced rate.  Any
change in such rate announced by National City shall take effect at the opening
of business on the day specified in the public announcement of such change.

“Process
Agent” has the meaning specified in Section 8.13.

“Pro
Rata Share” of any amount means, with respect to any Revolving
Credit Lender at any time, 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 (or, if the Commitments shall have been terminated pursuant to
Section 2.05 or 6.01, such Lender’s Revolving Credit Commitment as in
effect immediately prior to such termination) and the denominator of which is
the Revolving Credit Facility at such time (or, if the Commitments shall have
been terminated pursuant to Section 2.05 or 6.01, the Revolving Credit
Facility as in effect immediately prior to such termination).

“Receivables”
means, all Receivables referred to in Section 1(c) of the Security
Agreement.

 19
 

“Redeemable”
means, with respect to any Equity Interest, any Debt or any other right or
Obligation, any such Equity Interest, Debt, right or Obligation that
(a) the issuer has undertaken to redeem at a fixed or determinable date or
dates, whether by operation of a sinking fund or otherwise, or upon the
occurrence of a condition not solely within the control of the issuer or
(b) is redeemable at the option of the holder.

“Refinancing”
has the meaning specified in the Preliminary Statements.

“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
Documents” means, the Senior Notes Debt Documents, any
intercompany notes issued pursuant to Section 5.02(b)(i)(B) or (ii) and
the Convertible Notes Documents.

“Required
Lenders” means, at any time, Lenders owed or holding at least a
majority in interest of the sum of (a) the aggregate principal amount of
the Advances outstanding at such time, (b) the aggregate Available Amount
of all Letters of Credit outstanding at such time, and (c) the aggregate
Unused Revolving Credit Commitments at such time; provided, however, that if any Lender shall
be a Defaulting Lender at such time, there shall be excluded from the
determination of Required Lenders at such time (A) the aggregate principal
amount of the Advances owing to such Lender (in its capacity as a Lender) and
outstanding at such time, (B) such Lender’s Pro Rata Share of the
aggregate Available Amount of all Letters of Credit outstanding at such time,
and (C) the Unused Revolving Credit Commitment of such Lender at such
time.  For purposes of this definition,
the aggregate principal amount of Swing Line Advances owing to the Swing Line
Bank and of Letter of Credit Advances owing to any Issuing Bank and the
Available Amount of each Letter of Credit shall be considered to be owed to the
Revolving Credit Lenders ratably in accordance with their respective Revolving
Credit Commitments, except to the extent a Revolving Credit Lender is a
Defaulting Lender.

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

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

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

“Revolving
Credit Commitment” means, with respect to any Revolving Credit
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
Assignment and Assumptions, set forth for such Lender in the Register
maintained by the Paying Agent pursuant to Section 8.07(d) as such Lender’s
“Revolving Credit Commitment”, as such amount may be reduced at or prior to
such time pursuant to Section 2.05 or increased pursuant to Section 2.17.

 20

“Revolving Credit Facility”
means, at any time, the aggregate amount of the Revolving Credit Lenders’
Revolving Credit Commitments at such time.

“Revolving Credit Increase Effective
Date” has the meaning specified in Section 2.17(d).

“Revolving Credit Lender”
means, any Lender that has a Revolving Credit Commitment.

“Secured Cash Management Agreement”
means, any cash management agreement, deposit maintenance agreement, credit
card services agreement (provided that the aggregate amount of Debt owing under
such credit card services agreements does not exceed $20 million) or similar
agreement between any Loan Party and a bank which is a Lender Party or an
Affiliate of a Lender Party.

“Secured Hedge Agreement”
means, any Hedge Agreement permitted under Article V that is entered into
by and between any Loan Party and any Hedge Bank.

“Secured Obligations”
has the meaning specified in Section 2 of the Security Agreement.

“Secured Parties”
means, the Agents, the Lender Parties, the banks that are party to any Secured
Cash Management Agreement and the Hedge Banks.

“Security Agreement”
has the meaning specified in Section 3.01(a)(ii).

“Senior Notes” means,
the Borrower’s 63⁄4% Senior Notes due 2015 issued under the Indenture.

“Senior Notes Debt Documents”
means, the Indenture and any and all other agreements, documents, indentures
and instruments pursuant to which the Senior Notes are issued, in each case as
amended, to the extent permitted under the Loan Documents.

“Single Employer Plan”
means, a single employer plan, as defined in Section 4001(a)(15) of ERISA,
that (a) is maintained for employees of any Loan Party or any ERISA
Affiliate and no Person other than the Loan Parties and the ERISA Affiliates or
(b) was so maintained and in respect of which any Loan Party or any ERISA
Affiliate could have liability under Section 4069 of ERISA in the event
such plan has been or were to be terminated.

“Solvent” and “Solvency” mean, with
respect to any Person on a particular date, that on such date (a) the fair
value of the property of such Person is greater than the total amount of
liabilities, including, without limitation, contingent liabilities, of such
Person, (b) the present fair salable value of the assets of such Person is
not less than the amount that will be required to pay the probable liability of
such Person on its debts as they become absolute and matured, (c) such
Person does not intend to, and does not believe that it will, incur debts or
liabilities beyond such Person’s ability to pay such debts and liabilities as
they mature and (d) such Person is not engaged in a business or
transaction, and is not about to engage in a business or transaction, for which
such Person’s property would constitute an unreasonably small capital. 

 21
 

The amount of
contingent liabilities at any time shall be computed as the amount that, in the
light of all the facts and circumstances existing at such time, represents the
amount that can reasonably be expected to become an actual or matured
liability.

“Standby Letter of Credit”
means, any Letter of Credit issued under the Letter of Credit Facility, other
than a Trade Letter of Credit.

“Subject Property”
means, all property and assets acquired after the Effective Date that are or
are intended to be Collateral, including, without limitation, all inventory,
accounts receivable and related documents and related general intangibles.

“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; provided, however, there shall
be excluded, in any event, from this definition of Subsidiary, other than for
purposes of (i) the preparation and delivery of financial statements
pursuant to Sections 5.03(b) and (c), and (ii) the calculation of and
compliance with the financial covenants set forth in Sections 5.04(a)
through (c), the Excluded Subsidiaries.

“Subsidiary Guarantors”
means, the Subsidiaries of the Borrower listed on Schedule II hereto and
each other Subsidiary of the Borrower that elects to execute and deliver a
guaranty pursuant to Section 5.01(j).

“Subsidiary Guaranty”
has the meaning specified in Section 3.01(a)(iii).

“Surviving Debt”
means, the Senior Notes and the other Debt of each Loan Party and its
Subsidiaries outstanding immediately before and after giving effect to the
Transaction and listed on Schedule 4.01(t).

“Swing Line Advance”
means, an advance made by (a) the Swing Line Bank pursuant to
Section 2.01(b) or (b) any Revolving Credit Lender pursuant to
Section 2.02(b).

“Swing Line Bank”
means, initially, National City Bank, and thereafter each Person that shall
become the Swing Line Bank hereunder pursuant to Section 8.07.

“Swing Line Borrowing”
means, a borrowing consisting of a Swing Line Advance made by the Swing Line
Bank pursuant to Section 2.01(b) or the Revolving Credit Lenders pursuant
to Section 2.02(b).

“Swing Line Facility”
has the meaning specified in Section 2.01(b).

“Swing Line Reserve”
has the meaning specified in Section 2.02(b)(i).

 22
 

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

“Termination Date”
means, the earlier of (a) the date of termination in whole of the
Revolving Credit Commitments, and the Letter of Credit Commitment, pursuant to
Section 2.05 or 6.01, and (b) June 19, 2012.

“Total Debt/Consolidated EBITDA Ratio”
means, at any date of determination, the ratio of Consolidated total Debt for
Borrowed Money of the Borrower and its Subsidiaries as at such date of
determination to Consolidated EBITDA of the Borrower and its Subsidiaries for
the most recently ended fiscal quarter of the Borrower for which financial
statements are required to be delivered to the Lender Parties pursuant to
Section 5.03(b) or (c), as the case may be, and the immediately preceding
three fiscal quarters.

“Trade Letter of Credit”
means, any Letter of Credit that is issued under the Letter of Credit Facility
for the benefit of a supplier of Inventory to the Borrower or any of its
Subsidiaries to effect payment for such Inventory.

“Transaction” means,
the Refinancing and the other transactions contemplated by the Transaction
Documents.

“Transaction Documents”
means, collectively, the Loan Documents and the Related Documents.

“Type” refers to the
distinction between Advances bearing interest at the Base Rate and Advances
bearing interest at the Eurodollar Rate.

“Unused Revolving Credit Commitment”
means, with respect to any Revolving Credit 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, Swing
Line Advances and Letter of Credit Advances made by such Lender (in its
capacity as a Lender) and outstanding at such time plus (ii) such Lender’s
Pro Rata Share of (A) the aggregate Available Amount of all Letters of
Credit outstanding at such time, (B) the aggregate principal amount of all
Letter of Credit Advances made by the Issuing Banks pursuant to
Section 2.03(c) and outstanding at such time and (C) the Swing Line
Reserve at such time.

“Voting Interests”
means, shares of capital stock issued by a corporation, or equivalent Equity
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.

“Welfare Plan” means,
a welfare plan, as defined in Section 3(1) of ERISA, that is maintained
for employees of any Loan Party or in respect of which any Loan Party could
have liability.

“Withdrawal Liability”
has the meaning specified in Part I of Subtitle E of Title IV of ERISA.

 23
 

Section
1.02.          Computation
of Time Periods; Other Definitional Provisions.  In this Agreement and the other Loan
Documents 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”.  References in the Loan
Documents to any agreement or contract “as amended” shall mean and be a reference to
such agreement or contract as amended, amended and restated, supplemented or
otherwise modified from time to time in accordance with its terms.

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(g) (“GAAP”).

ARTICLE II

AMOUNTS AND TERMS OF THE ADVANCES

AND THE LETTERS OF CREDIT

Section
2.01.          The
Advances and the Letters of Credit.

(a)           The 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 Effective Date until the Termination
Date (i) in an amount for each such Advance not to exceed such Lender’s
Unused Revolving Credit Commitment at such time and (ii) in an aggregate
amount for all revolving Credit Advances outstanding at any one time not to
exceed an amount equal to (A) the aggregate Revolving Credit Commitments
of all Revolving Credit Lenders, minus (B) the aggregate Swing Line
Advances, minus (C) the aggregate Available Amount of all outstanding
Letters of Credit, in each case at such time. 
Each Revolving Credit Borrowing shall be in an aggregate amount of
$5,000,000 or an integral multiple of $1,000,000 in excess thereof (other than
a Borrowing the proceeds of which shall be used solely to repay or prepay in
full outstanding Swing Line Advances or outstanding 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.  Within the limits of each
Revolving Credit Lender’s Unused Revolving Credit Commitment in effect from
time to time, the Borrower may borrow under this Section 2.01(a), prepay
pursuant to Section 2.06(a) and reborrow under this Section 2.01(a).

(b)           The Swing Line Advances. 
Subject to other arrangements as referred to in Section 2.02(b)(i),
the Borrower may request the Swing Line Bank to make, and the Swing Line Bank
may, if in its sole discretion it elects to do so, make, on the terms and
conditions hereinafter set forth, Swing Line Advances to the Borrower from time
to time on any Business Day during the period from the Effective Date until the
Termination Date (i) in an aggregate amount not to exceed at any time
outstanding $40,000,000 (the “Swing Line Facility”) and (ii) in an amount not at any time exceeding the amount of
the then applicable Swing Line Reserve. 
No Swing Line Advance shall be used for the purpose of funding the
payment of principal of any other Swing Line Advance.  Each Swing Line Borrowing shall be in a
minimum

 24
 

amount
and in multiples as agreed between the Borrower and the Swing Line Bank and
shall be made as a Base Rate Advance. 
Within the limits of the Swing Line Facility and within the limits
referred to in clause (ii) above, so long as the Swing Line Bank, in its
sole discretion, elects to make Swing Line Advances, the Borrower may borrow
under this Section 2.01(b), repay pursuant to Section 2.04(d) or
prepay pursuant to Section 2.06(a) and reborrow under this
Section 2.01(b).

(c)           The Letters of Credit.  Each
Issuing Bank severally agrees, on the terms and conditions hereinafter set
forth, to issue (or cause its Affiliate that is a commercial bank to issue on
its behalf) letters of credit for the account of the Borrower from time to time
on any Business Day during the period from the Effective Date until 60 days before
the Termination Date in an aggregate Available Amount (i) for each such
Letter of Credit, together with all other Letters of Credit not to exceed at
any time the Letter of Credit Facility at such time and (ii) for each such
Letter of Credit not to exceed at any time the lesser of (x) such Issuing
Bank’s Letter of Credit Commitment at such time and (y) the Unused
Revolving Credit Commitments of the Revolving Credit Lenders at such time.  It is understood and agreed that the Existing
Letters of Credit shall be deemed to be Letters of Credit issued hereunder for
all purposes under this Agreement and the Loan Documents.  No Letter of Credit shall have an expiration
date (including all rights of the Borrower or the beneficiary to require
renewal) later than the earlier of 60 days before the Termination Date and
(A) in the case of a Standby Letter of Credit, one year after the date of
issuance thereof, but may by its terms be renewable annually upon notice (a “Notice of
Renewal”) given to the
Issuing Bank and the Paying Agent on or prior to any date for notice of renewal
set forth in such Letter of Credit but in any event at least ten Business Days
prior to the date of the proposed renewal of such Standby Letter of Credit and
upon fulfillment of the applicable conditions set forth in Article III
unless such Issuing Bank has notified the Borrower (with a copy to the Paying
Agent) on or prior to the date for notice of termination set forth in such
Letter of Credit but in any event at least ten Business Days prior to the then
effective expiration date of its election not to renew such Standby Letter of
Credit (a “Notice of Termination”; it being understood and agreed that an Issuing Bank shall not be
entitled to issue a Notice of Termination with respect to such a renewal unless
(i) the conditions precedent to the issuance of Letters of Credit set
forth in Section 3.02 shall not have been fulfilled or waived in
accordance herewith, or (ii) a Default shall have occurred and be
continuing, or (iii) pursuant to such renewal the effective expiration
date of such Letter of Credit would occur after the Termination Date or
(iv) such Issuing Bank shall have procured a replacement Issuing Bank) and
(B) in the case of a Trade Letter of Credit, 60 days after the date of
issuance thereof; provided that the terms of each Standby Letter of Credit that
is renewable annually shall (x) require the Issuing Bank that issued such
Standby Letter of Credit to give the beneficiary named in such Standby Letter
of Credit notice of any Notice of Termination, (y) permit such
beneficiary, upon receipt of such notice, to draw under such Standby Letter of
Credit prior to the date such Standby Letter of Credit otherwise would have
been automatically renewed and (z) not permit the expiration date (after
giving effect to any renewal) of such Standby Letter of Credit in any event to
be extended to a date later than 60 days before the Termination Date.  If either a Notice of Renewal is not given by
the Borrower or a Notice of Termination is given by the relevant Issuing Bank
pursuant to the immediately preceding sentence, such Standby Letter of Credit
shall expire on the date on which it otherwise would have been renewed;
provided, however, that even in the absence of receipt of a Notice of Renewal
the relevant Issuing Bank may in its discretion, unless instructed to the
contrary by the Paying Agent or the Borrower, deem that a Notice of Renewal

 25
 

had
been timely delivered and in such case, a Notice of Renewal shall be deemed to
have been so delivered for all purposes under this Agreement.  Each Standby Letter of Credit shall contain a
provision authorizing the Issuing Bank thereunder to deliver to the beneficiary
of such Letter of Credit, upon the occurrence and during the continuance of an
Event of Default, a notice (a “Default Termination Notice”) terminating such Letter of Credit and
giving such beneficiary 15 days to draw such Letter of Credit.  Within the limits of the Letter of Credit
Facility, and subject to the limits referred to above, the Borrower may request
the issuance of Letters of Credit under this Section 2.01(c), repay any
Letter of Credit Advances resulting from drawings thereunder pursuant to
Section 2.03(c) and request the issuance of additional Letters of Credit
under this Section 2.01(c).

Section
2.02.          Making
the Advances.

(a)           Except as otherwise provided in
Section 2.02(b) or 2.03, each Borrowing shall be made on notice, given not
later than 1:00 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 date of the proposed Borrowing in the case of
a Borrowing consisting of Base Rate Advances, by the Borrower to the Paying
Agent, which shall give to each Appropriate Lender prompt notice thereof by
telex or telecopier.  Each such notice of
a Borrowing (a “Notice of Borrowing”) shall be in writing or by telephone, confirmed immediately in
writing, or telex or telecopier, in substantially the form of Exhibit B
hereto, specifying therein the requested (i) date of such Borrowing,
(ii) Facility under which such Borrowing is to be made, (iii) Type of
Advances comprising such Borrowing, (iv) aggregate amount of such
Borrowing and (v) in the case of a Borrowing consisting of Eurodollar Rate
Advances, initial Interest Period for each such Advance.  Each Appropriate Lender shall, before (A)
11:00 A.M. (New York City time) on the date of such Borrowing, in the case of a
Borrowing consisting of Eurodollar Rate Advances or (B) 3:00 P.M. (New York City
time) on the date of such Borrowing, in the case of a Borrowing consisting of
Base Rate Advances, make available for the account of its Applicable Lending
Office to the Paying Agent at the Paying Agent Account, in same day funds, such
Lender’s ratable portion of such Borrowing in accordance with the respective
Commitments under the applicable Facility of such Lender and the other
Appropriate Lenders.  After the Paying
Agent’s receipt of such funds and upon fulfillment of the applicable conditions
set forth in Article III, the Paying Agent will make such funds available
to the Borrower by crediting the Borrower’s Account; provided, however, that,
in the case of any Revolving Credit Borrowing, the Paying Agent shall first
make a portion of such funds equal to the aggregate principal amount of any
Swing Line Advances and Letter of Credit Advances made by the Swing Line Bank
or any Issuing Bank, as the case may be, and by any other Revolving Credit
Lender and outstanding on the date of such Revolving Credit Borrowing, plus
interest accrued and unpaid thereon to and as of such date, available to the
Swing Line Bank or such Issuing Bank, as the case may be, and such other
Revolving Credit Lenders for repayment of such Swing Line Advances and Letter
of Credit Advances.

(b)           Swing Line Borrowings may be made either upon
notice as set forth in Section 2.02(b)(ii) below or pursuant to this
Section 2.02(b)(i) on a daily basis under mechanics mutually agreed to by
the Borrower and the Swing Line Bank, subject in any case to the fulfillment of
the applicable conditions precedent set forth in Article III hereof.  The Swing Line Reserve at any time shall be
the amount most recently established by the Borrower by written

 26
 

notice
to the Paying Agent confirmed in writing by the Swing Line Bank as the maximum
aggregate principal amount of Swing Line Borrowings to be outstanding at any
one time (the “Swing Line Reserve”), provided that in no event shall the Swing Line Reserve exceed
$40,000,000 at any time.  Swing Line
Advances made pursuant to this Section 2.02(b)(i) shall be made without
any requirement for a prior written or telephonic request given to the Paying
Agent.  The Swing Line Bank will notify
the Paying Agent, on a monthly basis, of any Swing Line Advances so made.  The Swing Line Bank shall not at any time
permit the aggregate outstanding amount of the Swing Line Advances to exceed
the then applicable amount of the Swing Line Reserve.

(i)            Each
Swing Line Borrowing, if not made in accordance with Section 2.02(b)(i) above,
shall be made on notice, given not later than 3:00 P.M. (New York City time) on
the date of the proposed Swing Line Borrowing, by the Borrower to the Swing
Line Bank and the Paying Agent.  Each
such notice of a Swing Line Borrowing (a “Notice of Swing Line Borrowing”) shall be in writing or by telephone,
confirmed immediately in writing, or telex or telecopier, specifying therein
the requested (i) date of such Borrowing, (ii) amount of such
Borrowing and (iii) maturity of such Borrowing (which maturity shall be no
later than the seventh day after the requested date of such Borrowing).  If, in its sole discretion, it elects to make
the requested Swing Line Advance, the Swing Line Bank will make the amount
thereof available to the Paying Agent at the Paying Agent Account, in same day
funds.  After the Paying Agent’s receipt
of such funds and upon fulfillment of the applicable conditions set forth in
Article III, the Paying Agent will make such funds available to the
Borrower by crediting the Borrower’s Account.

(ii)           Upon
written demand by the Swing Line Bank, with a copy of such demand to the Paying
Agent, each other Revolving Credit Lender shall purchase from the Swing Line
Bank, and the Swing Line Bank shall sell and assign to each such other
Revolving Credit Lender, such other Lender’s Pro Rata Share of such outstanding
Swing Line Advance as of the date of such demand, by making available for the
account of its Applicable Lending Office to the Paying Agent for the account of
the Swing Line Bank, by deposit to the Paying Agent’s Account, in same day
funds, an amount equal to the portion of the outstanding principal amount of
such Swing Line Advance to be purchased by such Lender.  The Borrower hereby agrees to each such sale
and assignment, and all parties hereto acknowledge and agree that the
obligations of such other Revolving Credit Lenders to purchase outstanding
Swing Line Advances is absolute and unconditional under all circumstances, and
shall be enforceable notwithstanding the occurrence of any Default or Event of
Default, the termination of the Revolving Credit Commitments or any other
circumstances.  Each Revolving Credit
Lender agrees to purchase its Pro Rata Share of an outstanding Swing Line
Advance on (i) the Business Day on which demand therefor is made by the
Swing Line Bank, provided that notice of such demand is given not later than
11:00 A.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 Swing Line Bank to any other Revolving Credit Lender of a
portion of a Swing Line Advance, the Swing Line Bank represents and warrants to
such other Lender that the Swing Line Bank is the legal and beneficial owner of
such interest being assigned by it, but makes no other representation or
warranty and assumes no responsibility with respect to such Swing Line Advance,
the Loan Documents or any Loan Party.  If
and to the extent that any Revolving Credit Lender shall not have so made the
amount of such Swing Line Advance available to the Paying

 27
 

Agent, or if the Swing Line Lender must disgorge or return any amounts
paid by the Borrower in respect thereof, such Revolving Credit Lender agrees to
pay to the Paying Agent for the account of the Swing Line Bank forthwith on
demand such amount together with interest thereon, for each day from the date
of demand by the Swing Line Bank until the date such amount is paid to the
Paying Agent, at the Base Rate.  If such
Lender shall pay to the Paying Agent such amount for the account of the Swing
Line Bank on any Business Day, such amount so paid in respect of principal
shall constitute a Swing Line Advance made by such Lender on such Business Day
for purposes of this Agreement, and the outstanding principal amount of the
Swing Line Advance made by the Swing Line Bank shall be reduced by such amount
on such Business Day.

(c)           Anything in subsection (a) 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 $5,000,000 or if the obligation of the Appropriate Lenders to make
Eurodollar Rate Advances shall then be suspended pursuant to Section 2.09
or 2.10 and (ii) the Revolving Credit Advances may not be outstanding as
part of more than twelve separate Borrowings.

(d)           Each Notice of Borrowing and Notice of Swing
Line Borrowing shall be irrevocable and binding on the Borrower.  In the case of any Borrowing that the related
Notice of Borrowing specifies is to be comprised of Eurodollar Rate Advances,
the Borrower shall indemnify each Appropriate 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 Borrowing 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 Advance to be made by such Lender as
part of such Borrowing when such Advance, as a result of such failure, is not
made on such date.

(e)           Unless the Paying Agent shall have received
notice from an Appropriate Lender prior to the date of any Borrowing under a
Facility under which such Lender has a Commitment that such Lender will not
make available to the Paying Agent such Lender’s ratable portion of such
Borrowing, the Paying Agent may assume that such Lender has made such portion
available to the Paying Agent on the date of such Borrowing in accordance with
subsection (a) of this Section 2.02 and the Paying 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 Paying
Agent, such Lender and the Borrower severally agree to repay or pay to the
Paying 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 Paying 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 Base Rate. 
If such Lender shall pay to the Paying Agent such corresponding amount,
such amount so paid shall constitute such Lender’s Advance as part of such
Borrowing for all purposes.

(f)            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

 28
 

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 Reimbursement Under Letters of Credit.  (a) Request for Issuance.  Each Letter of Credit shall be issued upon
notice, given not later than 11:00 A.M. (New York City time) on the fifth
Business Day prior to the date of the proposed issuance of such Letter of
Credit, by the Borrower to any Issuing Bank, which shall give to the Paying
Agent and each Revolving Credit Lender prompt notice thereof by telex or
telecopier or other writing.  Each such
notice of issuance of a Letter of Credit (a “Notice of Issuance”) shall be in writing
or by telephone, confirmed immediately in writing, or telex or telecopier,
specifying therein the requested (i) date of such issuance (which shall be
a Business Day), (ii) Available Amount of such Letter of Credit,
(iii) expiration date of such Letter of Credit, (iv) name and address
of the beneficiary of such Letter of Credit and (v) form of such Letter of
Credit, and shall be accompanied by such application and agreement for letter
of credit as such Issuing Bank may specify to the Borrower for use in
connection with such requested Letter of Credit (a “Letter of Credit Agreement”).  If (x) the requested form of such Letter
of Credit is acceptable to such Issuing Bank in its sole discretion and
(y) it has not received notice of objection to such issuance from Lenders
holding at least a majority of the Revolving Credit Commitments, such Issuing
Bank will, upon fulfillment of the applicable conditions set forth in
Article III, make such Letter of Credit available to the Borrower at its
office referred to in Section 8.02 or as otherwise agreed with the
Borrower in connection with such issuance. 
In the event and to the extent that the provisions of any Letter of
Credit Agreement shall conflict with this Agreement, the provisions of this
Agreement shall govern.

(b)           Letter of Credit Reports.  Each
Issuing Bank shall furnish (i) to the Paying Agent on or about the first
Business Day of each week a written report summarizing issuance and expiration
dates of Letters of Credit issued by such Issuing Bank during the previous week
and drawings during such week under all Letters of Credit, (ii) to each
Revolving Credit Lender on or about the first Business Day of each month a
written report summarizing issuance and expiration dates of Letters of Credit
issued by such Issuing Bank during the preceding month and drawings during such
month under all such Letters of Credit and (iii) to the Paying Agent and
each Revolving Credit Lender on or about the first Business Day of each
calendar quarter a written report setting forth the average daily aggregate
Available Amount during the preceding calendar quarter of all Letters of Credit
issued by such Issuing Bank.

(c)           Drawing and Reimbursement.  The
payment by any Issuing Bank of a draft drawn under any Letter of Credit shall
constitute for all purposes of this Agreement the making by such Issuing Bank
of a Letter of Credit Advance, which shall be a Base Rate Advance, in the
amount of such draft.  Upon written
demand by any Issuing Bank, with a copy of such demand to the Paying Agent,
each Revolving Credit Lender shall purchase from such Issuing Bank, and such
Issuing Bank shall sell and assign to each such Revolving Credit Lender, such
Lender’s Pro Rata Share of such outstanding Letter of Credit Advance as of the
date of such purchase, by making available for the account of its Applicable
Lending Office to the Paying Agent for the account of such Issuing Bank, by
deposit to the Paying Agent’s Account, in same day funds, an amount equal to
the portion of the outstanding principal amount of such Letter of Credit
Advance to be purchased by such Lender. 
Promptly after receipt thereof, the Paying

 29
 

Agent
shall transfer such funds to such Issuing Bank. 
The Borrower hereby agrees to each such sale and assignment, and all
parties hereto acknowledge and agree that the obligations of such other
Revolving Credit Lenders to purchase outstanding Letter of Credit Advances is
absolute and unconditional under all circumstances, and shall be enforceable
notwithstanding the occurrence of any Default or Event of Default, the
termination of the Revolving Credit Commitments or any other
circumstances.  Each Revolving Credit
Lender agrees to purchase its Pro Rata Share of an outstanding Letter of Credit
Advance on (i) the Business Day on which demand therefor is made by the
applicable Issuing Bank, provided that notice of such demand is given not later
than 11:00 A.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 an Issuing Bank to any Revolving Credit Lender of a portion of a Letter of
Credit Advance, such Issuing Bank represents and warrants to such other Lender
that such Issuing Bank is the legal and beneficial owner of such interest being
assigned by it, free and clear of any liens, but makes no other representation
or warranty and assumes no responsibility with respect to such Letter of Credit
Advance, the Loan Documents or any Loan Party. 
If and to the extent that any Revolving Credit Lender shall not have so
made the amount of such Letter of Credit Advance available to the Paying Agent,
or if an Issuing Bank must disgorge or return any amounts paid by the Borrower
in respect thereof, such Revolving Credit Lender agrees to pay to the Paying
Agent for the account of such Issuing Bank forthwith on demand such amount
together with interest thereon, for each day from the date of demand by such
Issuing Bank until the date such amount is paid to the Paying Agent, at the
Federal Funds Rate for its account or the account of such Issuing Bank, as applicable.  If such Lender shall pay to the Paying Agent
such amount for the account of such Issuing Bank on any Business Day, such
amount so paid in respect of principal shall constitute a Letter of Credit
Advance made by such Lender on such Business Day for purposes of this
Agreement, and the outstanding principal amount of the Letter of Credit Advance
made by such Issuing Bank shall be reduced by such amount on such Business Day.

(d)           Failure to Make Letter of Credit Advances.  The
failure of any Lender to make the Letter of Credit Advance to be made by it on
the date specified in Section 2.03(c) shall not relieve any other Lender
of its obligation hereunder to make its Letter of Credit Advance on such date,
but no Lender shall be responsible for the failure of any other Lender to make
the Letter of Credit Advance to be made by such other Lender on such date.

Section
2.04.          Repayment
of Advances.  (a)  Revolving Credit Advances.  The Borrower shall repay to the Paying Agent
for the ratable account of the Revolving Credit Lenders on the Termination Date
the aggregate principal amount of the Revolving Credit Advances then
outstanding.

(b)           Swing Line Advances.  The
Borrower shall repay to the Paying Agent for the account of the Swing Line Bank
and each other Revolving Credit Lender that has made a Swing Line Advance the
outstanding principal amount of each Swing Line Advance made by each of them on
the earlier of the maturity date specified in the applicable Notice of Swing
Line Borrowing (which maturity shall be no later than the seventh day after the
requested date of such Borrowing) and the Termination Date.

 30
 

(c)           Letter of Credit Advances.

(i)            The
Borrower shall repay to the Paying Agent for the account of each Issuing Bank
and each other Revolving Credit Lender that has made a Letter of Credit Advance
on the earlier of demand and the Termination Date the outstanding principal
amount of each Letter of Credit Advance made by each of them.

(ii)           The
Obligations of the Borrower under this Agreement, any Letter of Credit
Agreement and any other agreement or instrument relating to any Letter of
Credit, and the obligations of Revolving Credit Lenders to reimburse any
Issuing Bank for Letter of Credit Advances not reimbursed by the Borrower,
shall be unconditional and irrevocable, and shall be paid strictly in
accordance with the terms of this Agreement, such Letter of Credit Agreement
and such other agreement or instrument under all circumstances, including,
without limitation, the following circumstances:

(A)    any lack of validity or
enforceability of any Loan Document, any Letter of Credit Agreement, any Letter
of Credit or any other agreement or instrument relating thereto (all of the
foregoing being, collectively, the “L/C Related Documents”);

(B)    any change in the time, manner
or place of payment of, or in any other term of, all or any of the Obligations
of the Borrower in respect of any L/C Related Document or any other amendment
or waiver of or any consent to departure from all or any of the L/C Related
Documents;

(C)    the existence of any claim,
set-off, defense or other right that the Borrower may have at any time against
any beneficiary or any transferee of a Letter of Credit (or any Persons for
which any such beneficiary or any such transferee may be acting), any Issuing
Bank or any other Person, whether in connection with the transactions
contemplated by the L/C Related Documents or any unrelated transaction;

(D)    any statement or any other
document presented under a 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;

(E)     payment by any Issuing Bank
under a Letter of Credit against presentation of a draft or certificate that
does not comply with the terms of such Letter of Credit;

(F)     any exchange, release or
non-perfection of any Collateral or other collateral, or any release or
amendment or waiver of or consent to departure from the Guaranties or any other
guarantee, for all or any of the Obligations of the Borrower in respect of the
L/C Related Documents; or

(G)    any other circumstance or
happening whatsoever, whether or not similar to any of the foregoing,
including, without limitation, any other circumstance that might otherwise
constitute a defense available to, or a discharge of, the Borrower or a
Guarantor.

Section 2.05.          Termination or Reduction of the Commitments.  (a)  Optional.  The Borrower may, upon at least five Business
Days’ notice to the Paying Agent, terminate in whole or reduce in part the
unused portions of the Letter of Credit Facility and the Unused

 31
 

Revolving Credit
Commitments; provided, however, that each partial reduction of a Facility
(i) shall be in an aggregate amount of $5,000,000 or an integral multiple
of $1,000,000 in excess thereof and (ii) shall be made ratably among the
Appropriate Lenders in accordance with their Commitments with respect to such
Facility.

(b)           Mandatory.

(i)            The
Letter of Credit Facility shall be permanently reduced from time to time on the
date of each reduction in the Revolving Credit Facility by the amount, if any,
by which the amount of the Letter of Credit Facility exceeds the Revolving
Credit Facility after giving effect to such reduction of the Revolving Credit
Facility.

(ii)           The
Swing Line Facility shall be permanently reduced from time to time on the date
of each reduction in the Revolving Credit Facility by the amount, if any, by
which the amount of the Swing Line Facility exceeds the Revolving Credit
Facility after giving effect to such reduction of the Revolving Credit
Facility.

Section
2.06.          Prepayments.  (a)  Optional.  The Borrower may, upon at least one Business
Day’s notice in the case of Base Rate Advances and three Business Days’ notice
in the case of Eurodollar Rate Advances, in each case to the Paying 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
$5,000,000 or an integral multiple of $1,000,000 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).  Each such prepayment shall be applied, at the
option of the Borrower either (i) to the Revolving Credit Facility or
(ii) to the Swing Line Advances or (iii) to the Letter of Credit
Advances.  Notwithstanding the foregoing,
prepayment of Swing Line Advances held by the Swing Line Bank shall not require
any prior notice.

(b)           Mandatory.  The Borrower shall, on the
date of receipt of the Net Cash Proceeds of any Extraordinary Receipt by the
Borrower or any of its Subsidiaries, prepay an aggregate principal amount of
the Advances comprising part of the same Borrowings and deposit an amount in
the L/C Cash Collateral Account in accordance with clause (iv) below in an
amount equal to the amount of such Net Cash Proceeds.  Each such prepayment shall be applied to the
Revolving Credit Facility as set forth in clause (iv) below.

(i)            The
Borrower shall, on each Business Day, prepay an aggregate principal amount of
the Revolving Credit Advances comprising part of the same Borrowings, the
Letter of Credit Advances and the Swing Line Advances and deposit an amount in
the L/C Cash Collateral Account in accordance with clause (iv) below in an
amount equal to the amount by which (A) the sum of the aggregate principal
amount of (x) the Revolving Credit Advances, (y) the Letter of Credit
Advances and (z) the Swing Line Advances then outstanding plus the
aggregate Available Amount of all Letters of Credit then outstanding exceeds
(B) the Revolving Credit Facility on such Business Day.

 32
 

(ii)           The
Borrower shall, on each Business Day, pay to the Paying Agent for deposit in
the L/C Cash Collateral Account an amount sufficient to cause the aggregate
amount on deposit in the L/C Cash Collateral Account to equal the amount by
which the aggregate Available Amount of all Letters of Credit then outstanding
exceeds the Letter of Credit Facility on such Business Day.

(iii)          At
any time after (i) any assets of a type that would constitute Collateral have
been pledged by any Subsidiary to any Person financing a transaction permitted
under Section 5.02(f)(vii) or (ii) the Borrower has otherwise elected not to
cause a newly-formed or newly-acquired Subsidiary to pledge its assets to the
Collateral Agent as would otherwise be required under Section 5.01(j), if
(A) the sum of the aggregate principal amount of (x) the Revolving
Credit Advances, (y) the Letter of Credit Advances and (z) the Swing
Line Advances then outstanding plus the aggregate Available Amount of all
Letters of Credit then outstanding exceeds (B) 85% of the book value of
accounts receivables that constitute Collateral and (x) 65% of the book value
of inventory that constitutes Collateral plus (y) the aggregate
Agreement Value of all Cash Management Agreements and Secured Hedge Agreements
at such time, then the Borrower shall immediately prepay such excess.

(iv)          Prepayments
of the Revolving Credit Facility made pursuant to clause (i), (ii) or
(iii) above shall be first applied to prepay Letter of Credit Advances then
outstanding until such Advances are paid in full, second applied to prepay
Swing Line Advances then outstanding until such Advances are paid in full,
third applied to prepay Revolving Credit Advances then outstanding comprising
part of the same Borrowings until such Advances are paid in full and fourth
deposited in the L/C Cash Collateral Account to cash collateralize 100% of the
Available Amount of the Letters of Credit then outstanding; and, in the case of
prepayments of the Revolving Credit Facility required pursuant to
clause (i), (ii) or (iii) above, the amount remaining (if any) after the
prepayment in full of the Advances then outstanding and the 100% cash
collateralization of the aggregate Available Amount of Letters of Credit then
outstanding may be retained by the Borrower. 
Upon the drawing of any Letter of Credit for which funds are on deposit
in the L/C Cash Collateral Account, such funds shall be applied to reimburse
the Issuing Banks or Revolving Credit Lenders, as applicable.

(v)           All
prepayments under this subsection (b) shall be made together with accrued
interest to the date of such prepayment on the principal amount prepaid.

Section
2.07.          Interest.  (a)  Scheduled
Interest.  The Borrower shall pay
interest on the unpaid principal amount of each Advance owing to each Lender
from and including the date of such Advance until (but excluding) the date 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 in arrears quarterly on the last day of each March, June, September and
December during such periods and on the date such Base Rate Advance shall be
Converted or paid in full.

 33
 

(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 the last day of such Interest Period
and, if such Interest Period has a duration of more than three months, on each
day that occurs during such Interest Period every three months from the first
day of such Interest Period and on the date such Eurodollar Rate Advance shall
be Converted or paid in full.

(b)           Default Interest.  Upon
the occurrence and during the continuance of a Default, the Borrower shall pay
interest on (i) the unpaid principal amount of each Advance owing to each
Lender, payable in arrears on the dates referred to in clause (a)(i) or
(a)(ii) above and on demand, at a rate per annum equal at all times to 2% per
annum above the rate per annum required to be paid on such Advance pursuant to
clause (a)(i) or (a)(ii) above and (ii) to the fullest extent
permitted by law, the amount of any interest, fee or other amount payable under
the Loan Documents that is not paid when due, from the date such amount shall
be due until such amount shall be paid in full, payable in arrears on the date
such amount shall be paid in full and on demand, at a rate per annum equal at
all times to 2% per annum above the rate per annum required to be paid, in the
case of interest, on the Type of Advance on which such interest has accrued
pursuant to clause (a)(i) or (a)(ii) above and, in all other cases, on
Base Rate Advances pursuant to clause (a)(i) above.

(c)           Notice of Interest Period and Interest Rate.  Promptly
after receipt of a Notice of Borrowing pursuant to Section 2.02(a), a
notice of Conversion pursuant to Section 2.09 or a notice of selection of
an Interest Period pursuant to the terms of the definition of “Interest Period”, the Paying Agent shall give notice to the
Borrower and each Appropriate Lender of the applicable Interest Period and the
applicable interest rate determined by the Paying Agent for purposes of
clause (a)(i) or (a)(ii) above.

Section
2.08.          Fees.  (a)  Commitment
Fee.  The Borrower shall pay to the
Paying Agent for the account of the Revolving Credit Lenders a commitment fee,
from the Effective Date in the case of each Initial Lender (and from the
effective date specified in the Assignment and Assumption pursuant to which it
became a Lender in the case of each other Lender) until the Termination Date,
payable in arrears quarterly on the last day of each March, June, September and
December, commencing on June 30, 2007 and on the Termination Date, at the rate
of (i) on the Effective Date, 0.125% per annum and (ii) thereafter, at a rate
per annum equal to the Applicable Percentage, in each case on the average daily
portion of the sum of each Revolving Credit Lender’s Unused Revolving Credit
Commitment plus its Pro Rata Share of the Swing Line Reserve during such
period; provided, however, that any commitment fee accrued with respect to any
of the Commitments of a Defaulting Lender during the period prior to the time
such Lender became a Defaulting Lender and unpaid at such time shall not be
payable by the Borrower so long as such Lender shall be a Defaulting Lender
except to the extent that such commitment fee shall otherwise have been due and
payable by the Borrower prior to such time; and provided further that no
commitment fee shall accrue on any of the Commitments of a Defaulting Lender so
long as such Lender shall be a Defaulting Lender.

 34
 

(b)           Letter of Credit Fees, Etc.

(i)            The
Borrower shall pay to the Paying Agent for the account of each Revolving Credit
Lender a commission, payable in arrears quarterly on the last day of each
March, June, September and December, commencing June 30, 2007, and on the
Termination Date, on such Lender’s Pro Rata Share of the average daily
aggregate Available Amount during such quarter of Letters of Credit outstanding
from time to time at the rate equal to the Applicable Margin for Eurodollar
Loans.

(ii)           The
Borrower shall pay to each Issuing Bank, for its own account, (A) an
issuance fee for each Letter of Credit issued by such Issuing Bank in an amount
as the Borrower and such Issuing Bank may agree, payable on the date of
issuance and on renewal of such Letter of Credit, and (B) such other
commissions, fronting fees, transfer fees and other fees and charges in
connection with the issuance or administration of each Letter of Credit issued
by such Issuing Bank as the Borrower and such Issuing Bank shall agree.

(c)           Agents’ Fees.  The
Borrower shall pay to each Agent and each Joint Lead Arranger for its own
account such fees as may from time to time be agreed between the Borrower and
such Agent or such Joint Lead Arranger, as the case may be, including the fees
payable to the Joint Lead Arrangers pursuant to the Fee Letter.

Section
2.09.          Conversion
of Advances.  (a)  Optional.  The Borrower may on any Business Day, upon
notice given to the Paying Agent not later than 11:00 A.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 comprising the same Borrowing into Advances
of the other Type; provided, however, that 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, 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(c), no Conversion of any Advances
shall result in more separate Borrowings than permitted under Section 2.02(c)
and each Conversion of Advances comprising part of the same Borrowing under any
Facility shall be made ratably among the Appropriate 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.  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
$5,000,000, such Advances shall automatically Convert into Base Rate Advances.

(i)            If
the Borrower shall fail to select the duration of any Interest Period for any
Eurodollar Rate Advances in accordance with the provisions contained in the
definition of “Interest Period” in Section 1.01, the Paying Agent will
forthwith so notify the Borrower and the

 35
 

Appropriate Lenders, whereupon each such
Eurodollar Rate Advance will automatically, on the last day of the then
existing Interest Period therefor, Convert into a Base Rate Advance.

(ii)           Upon
the occurrence and during the continuance of any Default, (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)  If, due to either (i) the introduction
of or any change in or in the interpretation of any law or regulation or
(ii) the compliance with any 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 cost to any Lender Party of agreeing to make or of
making, funding or maintaining Eurodollar Rate Advances or of agreeing to issue
or of issuing or maintaining or participating in Letters of Credit or of
agreeing to make or of making or maintaining Letter of Credit Advances
(excluding, for purposes of this Section 2.10, any such increased costs
resulting from (x) Taxes or Other Taxes (as to which Section 2.12
shall govern) and (y) changes in the basis of taxation of overall net
income or overall gross income by the United States or by the foreign
jurisdiction or state under the laws of which such Lender Party is organized or
has its Applicable 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 Paying Agent), pay to the Paying Agent for the
account of such Lender Party additional amounts 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 Applicable Lending Office if the making
of such a designation would avoid the need for, or reduce the amount of, such
increased cost that may thereafter accrue and would not, in the reasonable
judgment of such Lender Party, be otherwise disadvantageous to such Lender
Party.  A notice as to the amount of such
increased cost, submitted to the Borrower by such Lender Party, 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 of any law or regulation or
(ii) the compliance with any 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
as a result of or based upon the existence of such Lender Party’s commitment to
lend or to issue or participate in Letters of Credit hereunder and other
commitments of such type or the issuance or maintenance of or participation in
the Letters of Credit (or similar contingent obligations), then, upon demand by
such Lender Party or such corporation (with a copy of such demand to the Paying
Agent), the Borrower shall pay to the Paying 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, 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 or participate in Letters of Credit hereunder or
to the issuance or maintenance of or participation in any Letters of
Credit.  A notice as to such amounts
submitted to the Borrower by such Lender Party shall be conclusive and binding
for all purposes, absent manifest error.

 36
 

(c)           If, with respect to any Eurodollar Rate
Advances under any Facility, the Required Lenders notify the Paying Agent that
the Eurodollar Rate for any Interest Period for such Advances will not
adequately reflect the cost to such Lenders of making, funding or maintaining
their Eurodollar Rate Advances for such Interest Period, the Paying Agent shall
forthwith so notify the Borrower and the Appropriate Lenders, whereupon
(i) each such Eurodollar Rate Advance under such Facility will automatically,
on the last day of the then existing Interest Period therefor, Convert into a
Base Rate Advance and (ii) the obligation of the Appropriate Lenders to
make, or to Convert Advances into, Eurodollar Rate Advances shall be suspended
until the Paying Agent shall notify the Borrower that such Lenders have
determined that the circumstances causing such suspension no longer exist.

(d)           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
Eurodollar Lending Office to perform its obligations hereunder to make
Eurodollar Rate Advances or to continue to fund or maintain Eurodollar Rate
Advances hereunder, then, on notice thereof and demand therefor by such Lender
to the Borrower through the Paying Agent, (i) each Eurodollar Rate Advance
under each Facility under which such Lender has a Commitment will
automatically, upon such demand, Convert into a Base Rate Advance and
(ii) the obligation of the Appropriate Lenders to make, or to Convert
Advances into, Eurodollar Rate Advances shall be suspended until the Paying
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 agrees to use reasonable efforts
(consistent with its internal policy and legal and regulatory restrictions) to
designate a different Eurodollar Lending Office if the making of such a
designation would allow such Lender or its Eurodollar Lending Office to
continue to perform its obligations to make Eurodollar Rate Advances or to
continue to fund or maintain Eurodollar Rate Advances and would not, in the
reasonable judgment of such Lender, be otherwise disadvantageous to such
Lender.

Section
2.11.          Payments
and Computations.  (a)  The Borrower shall make each payment
hereunder and under the Notes, irrespective of any right of counterclaim or
set-off, not later than 11:00 A.M. (New York City time) on the day when due in
U.S. dollars to the Paying Agent at the Paying Agent’s Account in same day
funds, with payments being received by the Paying Agent after such time being
deemed to have been received on the next succeeding Business Day.  The Paying 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 Applicable 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 Applicable Lending Office, in each case to
be applied in accordance with the terms of this Agreement.  Upon its acceptance of an Assignment and
Assumption 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 Assumption, the Paying 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

 37
 

Assignment and
Assumption shall make all appropriate adjustments in such payments for periods
prior to such effective date directly between themselves.

(b)           The Borrower hereby authorizes each Lender
Party and each of its Affiliates, 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, to the fullest
extent permitted by law, against any or all of the Borrower’s accounts with
such Lender Party or such Affiliate any amount so due.

(c)           All computations of interest based on the
Prime Rate shall be made by the Paying Agent on the basis of a year of 365 or
366 days, as the case may be, and all computations of interest based on the
Eurodollar Rate or the Federal Funds Rate and of fees and Letter of Credit
commissions shall be made by the Paying 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.  Each determination
by the Paying Agent of an interest rate, fee or commission hereunder shall be
conclusive and binding for all purposes, absent manifest error.

(d)           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.

(e)           Unless the Paying 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 Paying Agent may assume that the Borrower has made such payment in full to
the Paying Agent on such date and the Paying 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 Paying Agent, each such Lender Party
shall repay to the Paying 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 Paying Agent, at the Base Rate.

(f)            If the Paying Agent receives funds for
application to the Obligations under the Loan Documents under circumstances for
which the Loan Documents do not specify the Advances or the Facility to which,
or the manner in which, such funds are to be applied, the Paying 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 the Available Amount of all
Letters of Credit then outstanding, in repayment or prepayment of such of the
outstanding Advances or other Obligations owed to such Lender Party, and for
application to such principal installments, as the Paying Agent shall direct.

 38

Section
2.12.          Taxes. 
(a)  Any and all payments by the
Borrower to or for the account of any Lender Party or any Agent hereunder or
under any Notes shall be made free and clear of and without deduction for any
and all present or future taxes, levies, imposts, deductions, charges or
withholdings, and all liabilities with respect thereto, excluding, in the case
of each Lender Party and each Agent, taxes that are imposed on its overall net
income by the United States and taxes that are imposed on its overall net
income (and franchise taxes imposed in lieu thereof) by the state or foreign
jurisdiction under the laws of which such Lender Party or such Agent, as the
case may be, is organized or any political subdivision thereof and, 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 foreign jurisdiction
of such Lender Party’s Applicable 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”). 
If the Borrower shall be required by law to deduct any Taxes from or in
respect of any sum payable hereunder or under any Note to any Lender Party or
any Agent, (i) the sum payable by the Borrower shall be increased as may
be necessary so that after the Borrower and the Paying Agent have made all
required deductions (including deductions applicable to additional sums payable
under this Section 2.12) such Lender Party or such Agent, as the case may
be, receives an amount equal to the sum it would have received had no such
deductions been made, (ii) the Borrower shall make all such deductions and
(iii) the Borrower shall pay the full amount deducted to the relevant
taxation authority or other authority in accordance with applicable law.

(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 hereunder or under any Notes or from
the execution, delivery or registration of, performance under, or otherwise
with respect to, this Agreement, any Notes or any other Loan Documents or the
transfer of any Notes (hereinafter referred to as “Other Taxes”).

(c)           The Borrower shall indemnify each Lender
Party and each Agent for and hold them harmless against the full amount of
Taxes and Other Taxes, and for the full amount of taxes of any kind imposed or
assessed by any jurisdiction on amounts payable under this Section 2.12,
imposed on or paid by such Lender Party or such Agent (as the case may be) and
any liability (including penalties, additions to tax, interest and expenses)
arising therefrom or with respect thereto. 
This indemnification shall be made within 30 days from the date such
Lender Party or such Agent (as the case may be) makes written demand therefor.

(d)           Within 30 days after the date of any payment
of Taxes, the Borrower shall furnish to the Paying Agent, at its address
referred to in Section 8.02, the original or a certified copy of a receipt
evidencing such payment, to the extent such a receipt is issued therefor, or
other written proof of payment thereof that is reasonably satisfactory to the
Paying Agent.  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 Paying Agent, at such address, an opinion
of counsel acceptable to the Paying Agent stating that such payment is exempt
from Taxes.  For purposes of
subsections (d) and (e) of this Section 2.12, the terms 

 39
 

“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
Party 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 reasonably 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 Paying Agent and the Borrower with two original Internal Revenue
Service Forms W-8ECI (or successor forms), as appropriate, or in the case of a
Lender Party that is claiming a reduced rate of United States withholding tax
because of a tax treaty or that has certified in writing to the Paying 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 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 any 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.  If the forms provided by a Lender Party at
the time such Lender Party first becomes a party to this Agreement indicate 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 forms 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 forms; provided, however, that
if, at the effective date of the Assignment and Assumption pursuant to which a
Lender Party becomes a party to this Agreement, the Lender Party assignor was
entitled to payments under subsection (a) of this Section 2.12 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 Forms W-8BEN or W-8ECI
or the related certificate described above, that the applicable Lender Party
reasonably considers to be confidential, such 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 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, or in the interpretation or application
thereof, occurring after the date on which a form, certificate or other
document originally was required to be provided or if such form, certificate or
other document otherwise is not required under subsection (e) above), such
Lender Party shall not be entitled to indemnification under subsection (a)
or (c) of this Section 2.12 with respect to Taxes imposed by the United
States by reason of such failure; provided, however, that should a Lender Party
become subject to Taxes

 40
 

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 Applicable Lending Office if
the making of such a change would avoid the need for, or reduce the amount of,
any such additional amounts that may thereafter accrue and would not, in the reasonable
judgment of such Lender Party, be otherwise disadvantageous to such Lender
Party.  Nothing in this Section 2.12
or otherwise in this Agreement shall require any Lender Party to disclose to
the Borrower any of its tax returns (or any other information that it deems to
be confidential or proprietary).

(h)           Without prejudice to the survival of any
other agreement contained herein, the agreements and obligations contained in
this Section 2.12 shall survive the payment in full of the principal of
and interest on all Notes and Advances made hereunder.

Section
2.13.          Sharing
of Payments, Etc.  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, other than as a result
of an assignment pursuant to Section 8.07) (a) on account of
Obligations due and payable to such Lender Party hereunder and under the Notes
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 Notes at such time) of payments
on account of the Obligations due and payable to all Lender Parties hereunder
and under the Notes 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 Notes 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 Notes at such time) of payments on account of the
Obligations owing (but not due and payable) to all Lender Parties hereunder and
under the Notes 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 interests or participating interests 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 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; provided further that, so long as the Obligations under the Loan
Documents shall not have been accelerated, any excess payment received by any
Appropriate Lender shall be shared on a pro rata basis only with other
Appropriate Lenders.  The Borrower

 41
 

agrees that any
Lender Party so purchasing an interest or participating interest 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 interest or participating interest, as the case
may be, as fully as if such Lender Party were the direct creditor of the
Borrower in the amount of such interest or participating interest, as the case
may be.

Section
2.14.          Use of
Proceeds.  The proceeds of the
Advances and issuances of Letters of Credit shall be available (and the
Borrower agrees that it shall use such proceeds and Letters of Credit),
(a) for the Refinancing and to pay transaction fees and expenses incurred
in connection therewith and (b) to provide working capital for the Loan
Parties and for other general corporate purposes, including, without
limitation, for purposes of making capital expenditures, share repurchases permitted
under Section 5.02(g) and acquisitions and other Investments permitted under
Section 5.02(f).

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 Amount to any 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 Paying Agent for the account of such
Defaulting Lender, then the Paying Agent may, on its behalf or on behalf of
such other Agents or 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 Paying Agent shall so
apply any such amount to the payment of any such Defaulted Amount on any date,
the amount so applied by the Paying 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 Paying Agent shall be retained by the Paying Agent or
distributed by the Paying Agent to such other Agents or such other Lender
Parties, ratably in accordance with the respective portions of such Defaulted
Amounts payable at such time to the Paying Agent, such other Agents 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 Defaulted Amounts owing at such
time to the Paying Agent, such other Agents and such other Lender Parties, in
the following order of priority:

(i)            first, to the Agents for any Defaulted Amounts then
owing to them, in their capacities as such, ratably in accordance with such
respective Defaulted Amounts then owing to the Agents;

(ii)           second, to the Issuing Banks and the Swing Line
Bank for any Defaulted Amounts then owing to them, in their capacities as such,
ratably in accordance with such respective Defaulted Amounts then owing to the
Issuing Banks and the Swing Line Bank; and

(iii)          third, to any other Lender Parties for any
Defaulted Amounts then owing to such other Lender Parties, ratably in accordance
with such respective Defaulted Amounts then owing to such other Lender Parties.

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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 Paying Agent pursuant
to this subsection (a), shall be applied by the Paying Agent as specified
in subsection (b) 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 not owe a Defaulted Advance or a Defaulted Amount and
(iii) the Borrower, any 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 Agent
or such other Lender Party shall pay such amount to the Paying Agent to be held
by the Paying Agent, to the fullest extent permitted by applicable law, in
escrow or the Paying Agent shall, to the fullest extent permitted by applicable
law, hold in escrow such amount otherwise held by it.  Any funds held by the Paying Agent in escrow
under this subsection (b) shall be deposited by the Paying Agent in such
account as the Paying Agent shall designate in writing to the Borrower and the
Defaulting Lender, in the name and under the control of the Paying Agent, but
subject to the provisions of this subsection (b).  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 the Paying Agent’ standard terms
applicable to escrow accounts maintained with it.  Any interest credited to such account from
time to time shall be held by the Paying Agent in escrow under, and applied by
the Paying Agent from time to time in accordance with the provisions of, this
subsection (b).  The Paying 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
Paying 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:

(i)            first, to the Agents for any amounts then due and
payable by such Defaulting Lender to them hereunder, in their capacities as
such, ratably in accordance with such respective amounts then due and payable
to the Agents;

(ii)           second, to the Issuing Banks and the Swing Line
Bank for any amounts then due and payable to them hereunder, in their
capacities as such, by such Defaulting Lender, ratably in accordance with such
respective amounts then due and payable to the Issuing Banks and the Swing Line
Bank;

(iii)          third, 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

(iv)          fourth, to the Borrower for any Advance then
required to be made by such Defaulting Lender pursuant to a 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 Paying Agent in escrow at such time
with respect to

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such Lender Party
shall be distributed by the Paying 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.

(c)           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 any Agent or any Lender Party may have
against such Defaulting Lender with respect to any Defaulted Amount.

Section
2.16.          Evidence
of Debt.  (a)  Each Lender Party shall maintain in
accordance with its usual practice an account or accounts evidencing the
indebtedness of the Borrower to such Lender resulting from each Advance owing
to such Lender Party from time to time, including the amounts of principal and
interest payable and paid to such Lender from time to time hereunder.  The Borrower agrees that upon notice by any
Lender Party to the Borrower (with a copy of such notice to the Paying Agent)
to the effect that a promissory note or other evidence of indebtedness is
required or appropriate in order for such Lender Party to evidence (whether for
purposes of pledge, enforcement or otherwise) the Advances owing to, or to be
made by, such Lender Party, the Borrower shall promptly execute and deliver to
such Lender Party, with a copy to the Paying Agent, a Note substantially the
form of Exhibit A hereto, respectively, payable to the order of such
Lender Party in a principal amount equal to the Revolving Credit Commitment of
such Lender Party.  All references to
Notes in the Loan Documents shall mean Notes, if any, to the extent issued
hereunder.

(b)           The Register maintained by the Paying Agent
pursuant to Section 8.07(d) shall include an account for each Lender
Party, in which account shall be recorded (i) the date and amount of each
Borrowing made hereunder, the Type of Advances comprising such Borrowing and,
if appropriate, the Interest Period applicable thereto, (ii) the terms of
each Assignment and Assumption delivered to and accepted by it, (iii) the
amount of any principal or interest due and payable or to become due and
payable from the Borrower to each Lender Party hereunder, and (iv) the
amount of any sum received by the Paying Agent from the Borrower hereunder and
each Lender Party’s share thereof.

(c)           Entries made in good faith by the Paying
Agent in the Register pursuant to subsection (b) above, and by each Lender
Party in its account or accounts pursuant to subsection (a) above, shall
be prima facie evidence of the amount of principal and interest due and payable
or to become due and payable from the Borrower to, in the case of the Register,
each Lender Party and, in the case of such account or accounts, such Lender
Party, under this Agreement, absent manifest error; provided, however, that the failure of the Paying Agent or
such Lender Party to make an entry, or any finding that an entry is incorrect,
in the Register or such account or accounts shall not limit or otherwise affect
the obligations of the Borrower under this Agreement.

Section
2.17.          Increase
in Revolving Credit Facility. 
(a)  Request for Increase.  Provided (i) there exists no Default, (ii)
after giving effect thereto, the Borrower shall be in pro forma compliance with the
covenants contained in Section 5.04, (iii) the aggregate of (A) 85% of the
book value of accounts receivables that constitute Collateral and (B) 65% of
the book

 44
 

value of inventory
that constitutes Collateral exceeds the sum of (A) aggregate principal amount
outstanding under the Revolving Credit Facility at such time (including
outstanding Letters of Credit and Swing Line Advances) plus (B) the
aggregate amount of obligations outstanding under Secured Cash Management
Agreements at such time plus (C) the aggregate Agreement Value of all
Secured Hedge Agreements at such time and (iv) the incurrence of such
Indebtedness and the Liens securing such Indebtedness shall be permitted under
the Related Documents, upon written notice to the Paying Agent, the Borrower
may, from time to time, request an increase in the Revolving Credit Facility by
an amount (for all such requests) not to exceed $350,000,000; provided that any such request for an
increase shall be in a minimum amount of $50,000,000.  If the Borrower elects to request that
existing Revolving Credit Lenders participate in such increase, then at the
time of sending such notice, the Borrower shall request that the Paying Agent
promptly notify the existing Revolving Credit Lenders of such request and (in
consultation with the Paying Agent) shall specify the time period within which
each Revolving Credit Lender is requested to respond (which shall in no event
be less than ten Business Days from the date of delivery of such notice to the
Revolving Credit Lenders).

(b)           Lender Elections to Increase.  If
requested by the Borrower to provide an increase, each Revolving Credit Lender
shall notify the Paying Agent within such time period as set forth in the
notice referred to in clause (a) whether or not it agrees to increase its
Revolving Credit Commitment and, if so, whether by an amount equal to, greater
than, or less than its Pro Rata Share of such requested increase.  Any Revolving Credit Lender not responding
within such time period shall be deemed to have declined to increase its
Revolving Credit Commitment.  The Paying
Agent shall notify the Borrower and each Revolving Credit Lender of the Revolving
Credit Lenders’ responses to each request made hereunder.

(c)           Additional Revolving Credit Lenders. 
Subject to the approval of the Administrative Agents, the Joint Lead
Arrangers, the Issuing Bank and the Swing Line Lender (which approvals shall not
be unreasonably withheld), the Borrower may, in lieu of or in addition to
requesting that the Revolving Credit Lenders provide such increase, invite
additional Eligible Assignees to become Revolving Credit Lenders pursuant to a
joinder agreement in form and substance satisfactory to the Joint Lead
Arrangers and their counsel.

(d)           Effective Date and Allocations.  If
the Revolving Credit Facility is increased in accordance with this Section, the
Paying Agent and the Borrower shall determine the effective date (the “Revolving
Credit Increase Effective Date”) and the final allocation of such increase.  The Paying Agent shall promptly notify the
Borrower and the Revolving Credit Lenders (including Eligible Assignees that
become Revolving Credit Lenders in accordance with clause (c) above) of the
final allocation of such increase and the Revolving Credit Increase Effective
Date.

(e)           Conditions to Effectiveness of Increase.  As a
condition precedent to such increase, the Borrower shall deliver to the Paying
Agent a certificate of each Loan Party dated as of the Revolving Credit
Increase Effective Date (in sufficient copies for each Lender) signed by a
Responsible Officer of such Loan Party (i) certifying and attaching the
resolutions adopted by such Loan Party approving or consenting to such
increase, and (ii) in the case of the Borrower, certifying that, before and
after giving effect to such increase, (A) the representations and warranties
contained in Article IV and the other Loan Documents are true and correct on
and as

 45
 

of
the Revolving Credit Increase Effective Date, except to the extent that such
representations and warranties specifically refer to an earlier date, in which
case they are true and correct as of such earlier date, and except that for
purposes of this Section 2.17, the representations and warranties contained in
subsections (g) and (h) of Section 4.01 shall be deemed to refer to the most
recent statements furnished pursuant to subsections (b) and (c), respectively,
of Section 5.03, (B) no Default exists, (C) the aggregate of (x) 85% of
the book value of accounts receivables that constitute Collateral and (y) 65%
of the book value of inventory that constitutes Collateral exceeds the sum of
(x) aggregate principal amount outstanding under the Revolving Credit Facility
at such time (including outstanding Letters of Credit and Swing Line Advances) plus
(y) the aggregate amount of obligations outstanding under Secured Cash
Management Agreements plus (z) the aggregate Agreement Value of all
Secured Hedge Agreements at such time and (D) the Borrower is in pro forma compliance with the covenants in
Section 5.04.  The Borrower shall
prepay any Revolving Credit Loans outstanding on the Revolving Credit Increase
Effective Date (and pay any additional amounts required pursuant to
Section 8.04(c)) to the extent necessary to keep the outstanding Revolving
Credit Loans ratable with any revised Pro Rata Shares arising from any
nonratable increase in the Revolving Credit Commitments under this Section.

(f)            Conflicting Provisions.  This
Section shall supersede any provisions in Sections 2.13 or 8.01 to the
contrary.

ARTICLE III

CONDITIONS OF EFFECTIVENESS, LENDING
AND

ISSUANCES OF LETTERS OF CREDIT

Section
3.01.          Conditions
Precedent to Initial Extension of Credit. 
The effectiveness of this Amended and Restated Credit Agreement, and the
obligation of each Lender to make an Advance or of any Issuing Bank to issue a
Letter of Credit on the occasion of the Initial Extension of Credit hereunder
is subject to the satisfaction of the following conditions precedent before or
concurrently with such effectiveness or Initial Extension of Credit:

(a)           The Administrative Agents shall have received
on or before the day of the Initial Extension of Credit the following, each
dated such day (unless otherwise specified), in form and substance satisfactory
to the Joint Lead Arrangers and the Administrative Agents (unless otherwise
specified) and (except for the Notes) in sufficient copies for each Lender
Party:

(i)            The Notes payable to the order of the Lenders
to the extent requested pursuant to Section 2.16.

(ii)           A security agreement in substantially the form of Exhibit D hereto
(together with each other security agreement and security agreement supplement
delivered pursuant to Section 5.01(j), in each case as amended,
supplemented or otherwise modified from time to time, the “Security
Agreement”), duly
executed by each Loan Party, together with:

 46
 

(A)    certificates representing the
Pledged Shares referred to therein accompanied by undated stock powers executed
in blank and instruments evidencing the Pledged Debt indorsed in blank,

(B)    acknowledgment copies of
proper financing statements, duly filed on or before the day of the Initial
Extension of Credit under the Uniform Commercial Code of all jurisdictions that
the Joint Lead Arrangers may deem necessary or desirable in order to perfect
and protect the first priority liens and security interests created under the
Security Agreement, covering the Collateral described in the Security Agreement,

(C)    completed requests for
information, dated on or before the date of the Initial Extension of Credit,
listing the financing statements referred to in clause (B) above and all
other effective financing statements filed in all jurisdictions that the Joint Lead
Arrangers may deem necessary or desirable that name any Loan Party as debtor,
together with copies of such other financing statements,

(D)    evidence of the completion of
all other recordings and filings of or with respect to the Security Agreement
that the Joint Lead Arrangers may deem necessary or desirable in order to
perfect and protect the Liens created thereby,

(E)     evidence of the insurance
required by the terms of the Security Agreement naming the Collateral Agent, on
behalf of the Lender Parties, as additional insured and loss payee with such
responsible and reputable insurance companies or associations, and in such
amounts and covering such risks, as is satisfactory to the Administrative
Agents and the Joint Lead Arrangers, and

(F)     evidence that all other
action that the Joint Lead Arrangers may deem necessary or desirable in order
to perfect and protect the first priority liens and security interests created
under the Security Agreement has been taken (including, without limitation,
receipt of duly executed payoff letters, UCC-3 termination statements and
landlords’ and bailees’ waiver and consent agreements).

(iii)          A guaranty in substantially the form of Exhibit E hereto (together
with each other guaranty and guaranty supplement delivered pursuant to
Section 5.01(j), in each case as amended, supplemented or otherwise
modified from time to time, the “Subsidiary Guaranty”), duly executed by each Subsidiary Guarantor.

(iv)          Certified copies of the resolutions of the board of directors or of the
members or managers of each Loan Party approving the Transaction and each
Transaction Document to which it is or is to be a party, and of all documents
evidencing other necessary corporate action and governmental and other third
party approvals and consents, if any, with respect to the Transaction and each
Transaction Document to which it is or is to be a party.

(v)           A copy of a certificate of the Secretary of State of the jurisdiction
of incorporation or organization of each Loan Party, dated reasonably near the date
of the

 47
 

Initial Extension of Credit,
certifying (A) as to a true and correct copy of the charter, articles of
incorporation or articles of organization, as the case may be (“Organizational
Documents”) of such Loan
Party and each amendment thereto on file in such Secretary’s office and
(B) that (1) such amendments are the only amendments to such Loan
Party’s Organizational Documents on file in such Secretary’s office,
(2) if applicable, such Loan Party has paid all franchise taxes to the
date of such certificate and (C) such Loan Party is duly incorporated or
organized and in good standing or presently subsisting under the laws of the
State of the jurisdiction of its incorporation or organization.

(vi)          A copy of a certificate of the Secretary of State of each jurisdiction
reasonably requested by the Joint Lead Arrangers, dated reasonably near the
date of the Initial Extension of Credit, stating that a Loan Party is duly
qualified and in good standing as a foreign entity in such State and has filed
all annual reports required to be filed to the date of such certificate.

(vii)         A certificate of each Loan Party, signed on behalf of such Loan Party
by a Responsible Officer, dated the date of the Initial Extension of Credit
(the statements made in which certificate shall be true on and as of the date
of the Initial Extension of Credit), certifying as to (A) the absence of
any amendments to the Organizational Documents of such Loan Party since the
date of the Secretary of State’s certificate referred to in Section 3.01(a)(v),
(B) a true and correct copy of the bylaws or operating agreement, as
applicable, of such Loan Party as in effect on the date on which the
resolutions referred to in Section 3.01(a)(iv) were adopted and on the
date of the Initial Extension of Credit, (C) the due
incorporation/organization and good standing or valid existence of such Loan
Party as a corporation or limited liability company organized under the laws of
the jurisdiction of its incorporation or organization, and the absence of any
proceeding for the dissolution or liquidation of such Loan Party, (D) the
truth of the representations and warranties contained in the Loan Documents as
though made on and as of the date of the Initial Extension of Credit and
(E) the absence of any event occurring and continuing, or resulting from
the Initial Extension of Credit, that constitutes a Default.

(viii)        A certificate of a Responsible Officer of each Loan Party certifying
the names and true signatures of the officers of such Loan Party authorized to
sign each Transaction Document to which it is or is to be a party and the other
documents to be delivered hereunder and thereunder.

(ix)           Certified copies of each of the Related Documents, duly executed by the
parties thereto and in form and substance satisfactory to the Lender Parties,
together with all agreements, instruments and other documents delivered in
connection therewith as the Administrative Agents or the Joint Lead Arrangers
shall request.

(x)            Certificates, in substantially the form of
Exhibit F, attesting to the Solvency of each Loan Party individually and
together with its Subsidiaries, taken as a whole, before and after giving
effect to the Transaction, from its Chief Financial Officer, if any, or other
Responsible Officer if none.

 48
 

(xi)           Audited annual financial statements dated December 31, 2006, interim
financial statements dated the end of the most recent fiscal quarter for which
financial statements are available, pro forma consolidated financial statements
as to the Borrower and its Subsidiaries and forecasts prepared by management of
the Borrower, in form and substance satisfactory to the Administrative Agents
and the Joint Lead Arrangers, of balance sheets, income statements and cash
flow statements on an annual basis for each year following the Effective Date
until the Termination Date.

(xii)          A Notice of Borrowing or Notice of Issuance, as applicable, relating to
the Initial Extension of Credit.

(xiii)         Favorable opinions of Barrett & McNagny, LLP and Greenberg Traurig
LLP counsel for the Loan Parties, in substantially the forms of respectively
Exhibits G-1 and G-2 hereto and as to such other matters as the
Administrative Agents or the Joint Lead Arrangers may reasonably request.

(xiv)        Evidence satisfactory to the Administrative Agents and the Joint Lead
Arrangers that CT Corporation System shall have been appointed as Process Agent
under Section 8.12 hereof.

(b)           The Administrative Agents and the Joint Lead
Arrangers shall be satisfied with the corporate and legal structure and
capitalization of each Loan Party and each of its Subsidiaries the Equity
Interests in which Subsidiaries are being pledged pursuant to the Loan
Documents, including the terms and conditions of the charter, bylaws and each
class of Equity Interest in each Loan Party and each such Subsidiary and of
each agreement or instrument relating to such structure or capitalization.

(c)           All Equity Interests of the Guarantors shall
be owned by the Borrower or one or more of the Borrower’s Subsidiaries, in each
case free and clear of any Lien other than Liens created under the Loan
Documents.

(d)           The Administrative Agents and the Joint Lead
Arrangers shall be satisfied that all Existing Debt, other than Surviving Debt,
has been prepaid, redeemed or defeased in full or otherwise satisfied and
extinguished and that all Surviving Debt shall be on terms and conditions
satisfactory to the Administrative Agents and the Joint Lead Arrangers.

(e)           Before giving effect to the Transaction,
there shall have occurred no Material Adverse Change since December 31, 2006.

(f)            There shall exist no action, suit,
investigation, litigation or proceeding affecting any Loan Party or any of its
Subsidiaries pending or threatened before any court, governmental agency or
arbitrator that (i) could reasonably be expected to have a Material
Adverse Effect other than the matters described on Schedule 4.01(f) hereto
(the “Disclosed
Litigation”) or
(ii) purports to affect the legality, validity or enforceability of any
Transaction Document or the consummation of the Transaction, and there shall
have been no adverse change in the status, or financial effect on, any Loan
Party or any of its Subsidiaries, of the Disclosed Litigation from that
described on Schedule 4.01(f) hereto.

 49
 

(g)           All governmental and third party consents and
approvals necessary in connection with the Transaction shall have been obtained
(without the imposition of any conditions that are not acceptable to the Joint
Lead Arrangers and the Administrative Agents) and shall remain in effect; and
no law or regulation shall be applicable in the judgment of the Joint Lead
Arrangers and the Administrative Agents, in each case that restrains, prevents
or imposes materially adverse conditions upon the Transaction.

(h)           The Borrower shall have paid all accrued fees
of the Joint Lead Arrangers, the Agents and the Lender Parties and all accrued
expenses of the Joint Lead Arrangers (including the accrued fees and expenses
of counsel to the Joint Lead Arrangers and local counsel to the Lender
Parties).

(i)            The Refinancing shall have been consummated
or shall be consummated or concurrently consummated with the Initial Extension
of Credit, all advances and other amounts owing under the Existing Credit
Agreement shall have been repaid in full, the commitments thereunder shall have
terminated and the letters of credit issued thereunder shall have been canceled
or the reimbursement of draws thereunder provided for in a manner acceptable to
the Paying Agent (it being understood that treating such letters of credit as
Existing Letters of Credit hereunder is acceptable to the Paying Agent), and
all Liens and guaranties supporting any Debt under the Existing Credit
Agreement shall have been fully released and terminated.

Section
3.02.          Conditions
Precedent to Each Borrowing and Issuance and Renewal.  The obligation of each Appropriate Lender to
make an Advance (other than a Letter of Credit Advance made by an Issuing Bank
or a Revolving Credit Lender pursuant to Section 2.03(c) and a Swing Line
Advance made by a Revolving Credit Lender pursuant to Section 2.02(b)) on
the occasion of each Borrowing (including the initial Borrowing), and the
obligation of an Issuing Bank to issue a Letter of Credit (including the
initial issuance) or renew a Letter of Credit and the right of the Borrower to
request a Swing Line Borrowing, shall be subject to the further conditions
precedent that on the date of such Borrowing or issuance or renewal
(a) the following statements shall be true (and each of the giving of the
applicable Notice of Borrowing, Notice of Swing Line Borrowing, Notice of
Issuance or Notice of Renewal and the acceptance by the Borrower of the
proceeds of such Borrowing or of such Letter of Credit or the renewal 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 true and 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

(ii)           no Default has occurred and is continuing, or would result from such
Borrowing or issuance or renewal or from the application of the proceeds
therefrom; and

 50
 

(iii)          in the event that at the time of such Borrowing (x) any assets of a
type that would constitute Collateral have been pledged by any Subsidiary to
any Person financing a transaction permitted under Section 5.02(f)(vii) or (y)
the Borrower has otherwise elected not to cause a newly-formed or
newly-acquired Subsidiary to pledge its assets to the Collateral Agent as would
otherwise be required under Section 5.01(j), then, after giving effect to such
Borrowing or issuance or renewal, the aggregate of (A) 85% of the book value of
accounts receivables that constitute Collateral and (B) 65% of the book value
of inventory that constitutes Collateral will not be less than the sum of (A)
aggregate principal amount outstanding under the Revolving Credit Facility at
such time (including outstanding Letters of Credit and Swing Line Advances) plus
(B) the aggregate amount of obligations outstanding under Secured Cash
Management Agreements at such time plus (C) the aggregate Agreement Value
of all Secured Hedge Agreements at such time;

and (b) the
Administrative Agents shall have received such other approvals, opinions or
documents as the Administrative Agents or the Joint Lead Arrangers may
reasonably request.

Section
3.03.          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 unless an officer of the Paying Agent
responsible for the transactions contemplated by the Loan Documents shall have
received notice from such Lender Party prior to the Initial Extension of Credit
specifying its objection thereto and, if the Initial Extension of Credit
consists of a Borrowing, such Lender Party shall not have made available to the
Paying Agent such Lender Party’s ratable portion of such Borrowing.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

Section
4.01.          Representations
and Warranties of the Borrower.  The
Borrower represents and warrants as follows:

(a)           Each
Loan Party and each of its Subsidiaries (i) is a corporation or a limited
liability company duly organized, validly existing and in good standing under
the laws of the jurisdiction of its formation, (ii) is duly qualified and
in good standing as a foreign corporation or limited liability company 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 where the
failure to so qualify or be licensed would not be reasonably likely to have a
Material Adverse Effect and (iii) has all requisite entity 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.  Set forth on Schedule 4.01(a) hereto is
a complete and accurate list of all Loan Parties, showing as of the date hereof
(as to each Loan Party) the jurisdiction of its formation, the address of its
principal place of business and its U.S. taxpayer identification number or, in
the case of any non-U.S. Loan Party

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that does not have a U.S. taxpayer identification
number, its unique identification number issued to it by the jurisdiction of
its formation.  The copy of the charter
of each Loan Party and each amendment thereto provided pursuant to Section 3.01(a)(vii)
is a true and correct copy of each such document, each of which is valid and in
full force and effect.

(b)           Set forth on Schedule 4.01(b) hereto is a complete and accurate
list of all Subsidiaries of each Loan Party, showing as of the date hereof (as
to each such Subsidiary) the jurisdiction of its incorporation, the number of
shares of each class of its Equity Interests authorized, and the number
outstanding, on the date hereof and the percentage of each such class of its
Equity Interests owned (directly or indirectly) by such Loan Party and the
number of shares covered by all outstanding options, warrants, rights of
conversion or purchase and similar rights at the date hereof.  All of the outstanding Equity Interests in
each Loan Party’s Subsidiaries has 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 those created under the
Collateral Documents.

(c)           The execution, delivery and performance by each Loan Party of each
Transaction Document to which it is or is to be a party, and the consummation
of the Transaction, are within such Loan Party’s corporate powers, have been
duly authorized by all necessary corporate action, and do not (i) contravene
such Loan Party’s charter or bylaws, (ii) violate any law, 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, (iii) conflict with or result in the
breach of, or constitute a default or require any payment to be made under, any
contract, loan agreement, indenture, mortgage, deed of trust, lease or other
instrument binding on or affecting any Loan Party, any of its Subsidiaries or
any of their properties or (iv) except for the Liens created under the
Loan Documents, 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.  No Loan Party or any of
its Subsidiaries is in violation of any such law, rule, regulation, order,
writ, judgment, injunction, decree, determination or award or in breach of any
such contract, loan agreement, indenture, mortgage, deed of trust, lease or
other instrument, the violation or breach of which could be reasonably likely
to have a Material Adverse Effect.

(d)           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 Transaction Document to which it is or
is to be a party, or for the consummation of the Transaction, (ii) the
grant by any Loan Party of the Liens granted by it pursuant to the Collateral
Documents, (iii) the perfection or maintenance of the Liens created under
the Collateral Documents (including the first priority nature thereof) or
(iv) the exercise by any Agent or any Lender Party of its rights under the
Loan Documents or the remedies in respect of the Collateral pursuant to the
Collateral Documents, except for the authorizations, approvals, actions,
notices and filings listed on Schedule 4.01(d) hereto, all of which have
been duly obtained, taken, given or made and are in full force and effect.  All applicable waiting periods in connection
with the Transaction have expired without any action having been taken by any
competent authority restraining, preventing 

 52
 

or imposing materially
adverse conditions upon the Transaction or the rights of the Loan Parties or
their Subsidiaries freely to transfer or otherwise dispose of, or to create any
Lien on, any properties now owned or hereafter acquired by any of them.

(e)           This Agreement has been, and each other Transaction Document when
delivered hereunder will have been, duly executed and delivered by each Loan
Party party thereto.  This Agreement is,
and each other Transaction Document when delivered hereunder will be, the
legal, valid and binding obligation of each Loan Party party thereto,
enforceable against such Loan Party party in accordance with its terms.

(f)            There is no action, suit, investigation,
litigation or proceeding affecting any Loan Party or any of its Subsidiaries,
including any Environmental Action, pending or threatened before any court,
governmental agency or arbitrator that (i) could be reasonably likely to
have a Material Adverse Effect (other than the Disclosed Litigation) or
(ii) purports to affect the legality, validity or enforceability of any
Transaction Document or the consummation of the Transaction, and there has been
no material adverse change in the status, or financial effect on any Loan Party
or any of its Subsidiaries, of the Disclosed Litigation from that described on
Schedule 4.01(f) hereto.

(g)           The Consolidated balance sheet of the Borrower and its Subsidiaries as
at December 31, 2006, and the related Consolidated statement of income and
Consolidated statement of cash flows of the Borrower and its Subsidiaries for
the fiscal year then ended, accompanied by an unqualified opinion of Ernst
& Young LLP, independent public accountants, and the Consolidated balance
sheet of the Borrower and its Subsidiaries as at March 31, 2007, and the
related Consolidated statements of income and Consolidated statement of cash
flows of the Borrower and its Subsidiaries for the three 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, subject, in the case
of said balance sheet as at March 31, 2007, and said statements of income and
cash flows for the three 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 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, and
since December 31, 2006, there has been no Material Adverse Change and no event
has occurred or condition arisen that could reasonably be expected to have a
Material Adverse Effect.  Each
reconciliation for the Borrower on a stand-alone basis with respect to each of
the financial statements referred to above as at each such date for each such
period, duly certified by the Chief Financial Officer of the Borrower, a copy
of which has been furnished to each Lender Party, fairly present the financial
condition and results of operations of the Borrower on a stand-alone basis as
at each such date.

(h)           The Consolidated forecasted balance sheet, statement of income and
statement of cash flows of the Borrower and its Subsidiaries delivered to the
Lender Parties pursuant to Section 3.01(a)(xi) or 5.03 were prepared in
good faith on the basis of the assumptions stated therein, which assumptions
were fair in light of the conditions 

 53
 

existing at the time of
delivery of such forecasts, and represented, at the time of delivery, the
Borrower’s best estimate of its future financial performance.

(i)            Neither the Information Memorandum nor any
other information, exhibit or report furnished by or on behalf of any Loan
Party to any Agent or any Lender Party in connection with the negotiation and
syndication 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 therein not misleading.

(j)            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 drawings under any Letter of Credit 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.

(k)           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. 
Neither any Loan Party nor any of its Subsidiaries is a “holding
company”, or a “subsidiary company” of a “holding company”, or an “affiliate”
of a “holding company” or of a “subsidiary company” of a “holding company”, as
such terms are defined in the Public Utility Holding Company Act of 1935, as
amended.  Neither the making of any
Advances, nor the issuance of any Letters of Credit, nor the application of the
proceeds or repayment thereof by the Borrower, nor the consummation of the
other transactions contemplated by the Transaction Documents, will violate any
provision of any such Act or any rule, regulation or order of the Securities
and Exchange Commission thereunder.

(l)            Neither any Loan Party nor any of its
Subsidiaries is a party to any indenture, loan or credit agreement or any lease
or other agreement or instrument or subject to any charter or corporate
restriction that could be reasonably likely to have a Material Adverse Effect.

(m)          All filings and other actions necessary or desirable to perfect and
protect the security interest in the Collateral created under the Collateral
Documents have been duly made or taken and are in full force and effect, and
the Collateral Documents create in favor of the Collateral Agent for the
benefit of the Secured Parties a valid and, together with such filings and
other actions, perfected first priority security interest in the Collateral,
securing the payment of the Secured Obligations, and all filings and other actions
necessary or desirable to perfect and protect such security interest have been
duly taken.  The Loan Parties are the
legal and beneficial owners of the Collateral free and clear of any Lien,
except for the liens and security interests created or permitted under the Loan
Documents.

(n)           Each Loan Party is, individually and together with its Subsidiaries,
Solvent.

 54
 

(o)           Set forth on Schedule 4.01(o) hereto is a complete and accurate
list of all Plans, Multiemployer Plans and Welfare Plans.

(i)            No ERISA Event has occurred or is reasonably
expected to occur with respect to any Plan that has resulted in or is
reasonably expected to result in a material liability of any Loan Party or any
ERISA Affiliate.

(ii)           Schedule B (Actuarial Information) to the most recent annual
report (Form 5500 Series) for each Plan, copies of which have been filed with
the Internal Revenue Service and furnished to the Lender Parties, is complete
and accurate and fairly presents the funding status of such Plan, and since the
date of such Schedule B there has been no material adverse change in such
funding status.

(iii)          Neither any Loan Party nor any ERISA Affiliate has incurred or is
reasonably expected to incur any Withdrawal Liability to any Multiemployer
Plan.

(iv)          Neither any Loan Party nor any ERISA Affiliate has been notified by the
sponsor of a Multiemployer Plan that such Multiemployer Plan is in
reorganization or has been terminated, within the meaning of Title IV of ERISA,
and no such Multiemployer Plan is reasonably expected to be in reorganization
or to be terminated, within the meaning of Title IV of ERISA.

(p)           Except as otherwise set forth on Part I of Schedule 4.01(p)
hereto, the operations and properties of each Loan Party and each of its
Subsidiaries comply in all material respects with all applicable Environmental
Laws and Environmental Permits, all past non-compliance with such Environmental
Laws and Environmental Permits has been resolved without ongoing obligations or
costs, and no circumstances exist that could be reasonably likely to
(A) form the basis of an Environmental Action against any Loan Party or
any of its Subsidiaries or any of their properties that could have a Material
Adverse Effect or (B) cause any such property to be subject to any
restrictions on ownership, occupancy, use or transferability under any
Environmental Law.

(i)            Except as otherwise set forth on Part II of
Schedule 4.01(p) hereto, none of the 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 on the CERCLIS or any analogous foreign,
state or local list or is adjacent to any such property; there are no and never
have been 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 property currently
owned or operated by any Loan Party or any of its Subsidiaries or, to the best
of its knowledge, on any property formerly owned or operated by any Loan Party
or any of its Subsidiaries; there is no asbestos or asbestos-containing
material on any property currently owned or operated by any Loan Party or any
of its Subsidiaries; and Hazardous Materials have not been released, discharged
or disposed of on any property currently or formerly owned or operated by any
Loan Party or any of its Subsidiaries.

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(ii)           Except as otherwise set forth on Part III of Schedule 4.01(p)
hereto, neither any Loan Party nor any of its Subsidiaries is undertaking, and
has not completed, 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
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 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.

(q)           Neither any Loan Party nor any of its Subsidiaries is party to any tax
sharing agreement.

(i)            Each Loan Party and each of its Subsidiaries
and Affiliates has filed, has caused to be filed or has been included in all
tax returns (Federal, state, local and foreign) required to be filed and has
paid all taxes shown thereon to be due, together with applicable interest and
penalties.

(ii)           Set forth on Part I of Schedule 4.01(q) hereto is a complete and
accurate list, as of the date hereof, of each taxable year of each Loan Party
and each of its Subsidiaries and Affiliates for which Federal income tax
returns have been filed and for which the expiration of the applicable statute
of limitations for assessment or collection has not occurred by reason of extension
or otherwise (an “Open Year”).

(iii)          There are no pending tax audits or examinations, except as set forth on
Part II of Schedule 4.01(q) hereof, and no deficiencies or other claims
for unpaid taxes are proposed in writing in respect of taxes (Federal, state,
local and foreign) due from, or with respect to, any of the Loan Parties, their
Subsidiaries or Affiliates or with respect to any tax return filed by, or in
respect of, any of them, except as set forth on Part II of
Schedule 4.01(q) hereof.

(r)            Neither the business nor the properties of
any Loan Party or any of its Subsidiaries are affected by any fire, explosion,
accident, strike, lockout or other labor dispute, drought, storm, hail,
earthquake, embargo, act of God or of the public enemy or other casualty
(whether or not covered by insurance) that could be reasonably likely to have a
Material Adverse Effect.

(s)           Set forth on Schedule 4.01(s) hereto is a complete and accurate
list of all Existing Debt (other than Surviving Debt), showing as of the date
hereof the obligor and the principal amount outstanding thereunder.

(t)            Set forth on Schedule 4.01(t) hereto is
a complete and accurate list of all Debt which will remain outstanding after
giving effect to the consummation of the Transaction, showing as of the date
hereof the obligor and the principal amount outstanding thereunder, the
maturity date thereof and the amortization schedule therefor, 

 56
 

together with a true and
complete copy of the Indenture and of the form of Senior Notes and of the
Convertible Debt Documents.

(u)           Set forth on Schedule 4.01(u) hereto is a complete and accurate
list of all Liens on the property or assets of any Loan Party or any of its
Subsidiaries, showing as of the date hereof the lienholder thereof, the
principal amount of the obligations secured thereby and the property or assets
of such Loan Party or such Subsidiary subject thereto.

(v)           Set forth on Schedule 4.01(v) hereto is a complete and accurate
list of all Investments held by any Loan Party or any of its Subsidiaries on
the date hereof, showing as of the date hereof the amount, obligor or issuer
and maturity, if any, thereof.

(w)          Set forth on Schedule 4.01(w) hereto is a complete and accurate
list of all patents, trademarks, trade names, service marks and copyrights, and
all applications therefor and licenses thereof, of each Loan Party or any of
its Subsidiaries, showing as of the date hereof the jurisdiction in which
registered, the registration number, the date of registration and the
expiration date.

ARTICLE V

COVENANTS OF THE BORROWER

Section
5.01.          Affirmative
Covenants.  So long as any Advance or
any other Obligation of any Loan Party under any Loan Document 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, the Racketeer Influenced and Corrupt
Organizations Chapter of the Organized Crime Control Act of 1970 and the
Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism
Act of 2001, Pub. L. 107-56 and all other laws and regulations relating to
money laundering and terrorist activities.

(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 taxes, assessments and governmental charges or
levies imposed upon it or upon its property and (ii) all lawful claims
that, if unpaid, might by law become a Lien upon its property; 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 that is being contested in good faith and
by proper proceedings and as to which appropriate reserves are being
maintained, unless and until any Lien resulting therefrom attaches to its property
and becomes enforceable against its other creditors.

(c)           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

 57
 

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.

(d)           Maintenance of Insurance. 
Maintain, and cause each of its Subsidiaries to maintain, insurance with
responsible and reputable insurance companies or associations in such amounts
and covering such risks as is usually carried by companies engaged in similar
businesses and owning similar properties in the same general areas in which the
Borrower or such Subsidiary operates.

(e)           Preservation of Corporate 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; provided, however, that the Borrower and
its Subsidiaries may consummate any merger or consolidation permitted under
Section 5.02(d) and provided further
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 may be, and that the loss thereof
is not disadvantageous in any material respect to the Borrower, such Subsidiary
or the Lender Parties.

(f)            Visitation Rights.  At
any reasonable time and from time to time, permit any of the Agents or any of
the Lender Parties, or any agents or representatives thereof, to examine and
make copies of and abstracts from the records and books of account of, and
visit the properties 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.

(g)           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.

(h)           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 in good working order and condition, ordinary wear and tear
excepted.

 58
 

(i)            Transactions with Affiliates and Excluded Subsidiaries. 
Conduct, and cause each of its Subsidiaries to conduct, all transactions
otherwise permitted under the Loan Documents with any of their Affiliates
(including any Excluded Subsidiaries) 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.

(j)            Covenant to Guarantee Obligations and Give
Security.  Upon (x) the request of the Collateral
Agent following the occurrence and during the continuance of a Default,
(y) the formation or acquisition of any new direct or indirect
Subsidiaries by any Loan Party (unless, in the case of this clause (y), the
Borrower otherwise elects by designating such Subsidiary as an Excluded
Subsidiary in a writing delivered to the Joint Lead Arrangers within 15 days
after the date of such formation or acquisition, in which case the provisions
of this Agreement that by their terms become effective upon the Borrower’s
making such election shall thereafter be in effect) or any Subsidiary’s ceasing
to be an Excluded Subsidiary pursuant to the definition of “Excluded
Subsidiary” or (z) the
acquisition of any Subject Property by any Loan Party, and such Subject
Property, in the judgment of the Collateral Agent, shall not already be subject
to a perfected first priority security interest in favor of the Collateral
Agent for the benefit of the Secured Parties, then the Borrower shall, and in
the case of clause (y), may, in each case at the Borrower’s expense:

(i)            in connection with the
formation or acquisition of a Subsidiary or any Subsidiary’s ceasing to be an
Excluded Subsidiary, within 15 days after such formation or acquisition, cause
each such Subsidiary, and cause each direct and indirect parent of such
Subsidiary (if it has not already done so), to duly execute and deliver to the
Collateral Agent a guaranty or guaranty supplement, in form and substance
satisfactory to the Collateral Agent, guaranteeing the other Loan Parties’
obligations under the Loan Documents,

(ii)           within 15 days after
such request, formation or acquisition or any Subsidiary’s ceasing to be an
Excluded Subsidiary, furnish to the Collateral Agent a description of the
personal properties of the Loan Parties and their respective Subsidiaries
constituting Subject Property in detail satisfactory to the Collateral Agent,

(iii)          within 30 days after
such request, formation or acquisition or any Subsidiary’s ceasing to be an
Excluded Subsidiary, duly execute and deliver, and cause each such Subsidiary
and each direct and indirect parent of such Subsidiary (if it has not already
done so) to duly execute and deliver, to the Collateral Agent pledges,
assignments, security agreement supplements and other security agreements, as
specified by and in form and substance satisfactory to the Collateral Agent,
securing payment of all the Obligations of the applicable Loan Party, such
Subsidiary or such parent, as the case may be, under the Loan Documents and
constituting Liens on all such properties which constitute Subject Property,

 59
 

(iv)          within 30 days after
such request, formation or acquisition or any Subsidiary’s ceasing to be an
Excluded Subsidiary, take, and cause such Subsidiary or such parent to take,
whatever action (including, without limitation, the filing of Uniform
Commercial Code financing statements, and the giving of notices) may be
necessary or advisable in the opinion of the Collateral Agent to vest in the
Collateral Agent (or in any representative of the Collateral Agent designated
by it) valid and subsisting Liens on the Subject Property purported to be
subject to the pledges, assignments, security agreement supplements and
security agreements delivered pursuant to this Section 5.01(j),
enforceable against all third parties in accordance with their terms,

(v)           within 60 days after
such request, formation or acquisition or any Subsidiary’s ceasing to be an
Excluded Subsidiary, deliver to the Collateral Agent, upon the request of the
Collateral Agent in its sole discretion, a signed copy of a favorable opinion,
addressed to the Collateral Agent and the other Secured Parties, of counsel for
the Loan Parties acceptable to the Collateral Agent as to the matters contained
in clauses (i), (iii) and (iv) above, as to such guaranties, guaranty
supplements, pledges, assignments, security agreement supplements and security
agreements being legal, valid and binding obligations of each Loan Party party
thereto enforceable in accordance with their terms, as to the matters contained
in clause (iv) above, as to such recordings, filings, notices,
endorsements and other actions being sufficient to create valid perfected Liens
on such Subject Property, and as to such other matters as the Collateral Agent
may reasonably request,

(vi)          upon the occurrence and
during the continuance of a Default, promptly cause to be deposited any and all
cash dividends paid or payable to it or any of its Subsidiaries from any of its
Subsidiaries from time to time into the Collateral Account, and with respect to
all other dividends paid or payable to it or any of its Subsidiaries from time
to time, promptly execute and deliver, or cause such Subsidiary to promptly
execute and deliver, as the case may be, any and all further instruments and
take or cause such Subsidiary to take, as the case may be, all such other
action as the Collateral Agent may deem necessary or desirable in order to
obtain and maintain from and after the time such dividend is paid or payable a
perfected, first priority lien on and security interest in such dividends, and

(vii)         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 Collateral Agent may deem
necessary or desirable in obtaining the full benefits of, or in perfecting and
preserving the Liens of, such guaranties, pledges, assignments, security
agreement supplements and security agreements.

(k)           Further
Assurances.  (i) Promptly upon
request by any Agent, or any Lender Party through the Paying Agent, correct, and
cause each of its Subsidiaries promptly to correct, any defect or error that
may be discovered in any Loan Document or in the execution, acknowledgment,
filing or recordation thereof, and

 60

(ii)           Promptly upon request by any Agent,
or any Lender Party through the Paying Agent, do, execute, acknowledge,
deliver, record, re-record, file, re-file, register and re-register any and all
such further acts, deeds, conveyances, pledge agreements, assignments,
financing statements and continuations thereof, termination statements, notices
of assignment, transfers, certificates, assurances and other instruments as any
Agent, or any Lender Party through the Paying Agent, may reasonably require
from time to time in order to (A) carry out more effectively the purposes
of the Loan Documents, (B) to the fullest extent permitted by applicable
law, subject any Loan Party’s or any of its Subsidiaries’ properties, assets,
rights or interests to the Liens now or hereafter intended to be covered by any
of the Collateral Documents, (C) perfect and maintain the validity,
effectiveness and priority of any of the Collateral Documents and any of the
Liens intended to be created thereunder and (D) assure, convey, grant, assign,
transfer, preserve, protect and confirm more effectively unto the Secured
Parties the rights granted or now or hereafter intended to be granted to the
Secured Parties under any Loan Document or under any other instrument executed
in connection with any Loan Document to which any Loan Party or any of its
Subsidiaries is or is to be a party, and cause each of its Subsidiaries to do
so, and

(iii)          In the event that any of the Loan
Parties organized under the laws of Virginia or South Carolina have not, as of
the date which is 60 days after the Closing Date, been merged into a Subsidiary
of the Borrower organized in Delaware, Indiana or Ohio, deliver to the Paying
Agent promptly after request therefor an opinion of counsel in Virginia and
South Carolina, as applicable, as to the due authorization, execution and
delivery by such Subsidiary of the Loan Documents to which it is a party and as
to such other matters as the Paying Agent may reasonably request.

(iv)          In the event that RESCO Steel Products
Corporation and Roanoke Technical Treatment & Services, Inc. have not, as
of the date which is 30 days after the Closing Date, been merged into a
Subsidiary of the Borrower certificates representing the shares of which have
been delivered to the Collateral Agent, deliver to the Collateral Agent
promptly after request therefor certificates representing the Pledged Shares of
such entities accompanied by undated stock powers executed in blank.

(l)            Performance of Related Documents.  Perform and observe, and cause each of its
Subsidiaries to perform and observe, all of the terms and provisions of each
Related Document to be performed or observed by it, maintain each such Related
Document in full force and effect, enforce such Related Document in accordance
with its terms, take all such action to such end as may be from time to time
requested by the Paying Agent and, upon request of the Paying Agent, make to
each other party to each such Related Document such demands and requests for
information and reports or for action as any Loan Party or any of its
Subsidiaries is entitled to make under such Related Document.

(m)          Preparation of Environmental
Reports.  At the request of the Joint
Lead Arrangers or the Collateral 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 Joint Lead Arrangers or

 61
 

the Collateral 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 Joint Lead
Arrangers or the Collateral 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 Joint Lead Arrangers or the Collateral 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
Joint Lead Arrangers, 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 their respective properties to undertake such
an assessment.

(n)           Compliance with Terms of
Leaseholds.  Make all payments and
otherwise perform all obligations in respect of all leases of real property to
which the Borrower or any of its Subsidiaries is a party, keep such leases in
full force and effect and not allow such leases to lapse or be terminated or
any rights to renew such leases to be forfeited or cancelled, notify the Paying
Agent of any default by any party with respect to such leases and cooperate
with the Paying Agent in all respects to cure any such default, and cause each
of its Subsidiaries to do so, except, in any case, where the failure to do so,
either individually or in the aggregate, could not be reasonably likely to have
a Material Adverse Effect.

Section 5.02.          Negative
Covenants.  So long as any Advance or
any other Obligation of any Loan Party under any Loan Document 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, or sign
or file or suffer to exist, or permit any of its Subsidiaries to sign or file
or suffer to exist, under the Uniform Commercial Code of any jurisdiction, a
financing statement that names the Borrower or any of its Subsidiaries as
debtor, or sign or suffer to exist, or permit any of its Subsidiaries to sign
or suffer to exist, any security agreement authorizing any secured party
thereunder to file such financing statement, or assign, or permit any of its
Subsidiaries to assign, any accounts or other right to receive income, except:

(i)            Liens created under
the Loan Documents;

(ii)           Permitted Liens;

(iii)          Liens existing on
the date hereof and described on Schedule 4.01(u) hereto;

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(iv)          purchase money Liens
arising from financings 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; 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 that the Debt
secured by Liens permitted by this clause (iv) shall be permitted under
Section 5.02(b)(iii)(B);

(v)           Liens on or with
respect to the Equity Interests or assets of a newly-formed or newly-acquired
Subsidiary granted in connection with financing the formation of, or the acquisition of all of the Equity Interests or all or
substantially all of the assets of, such Person, as contemplated in
Section 5.02(f)(vii); and

(vi)          Liens not otherwise
permitted under this Section 5.02(a); provided that
(A) such Liens shall not extend to or cover any Collateral and
(B) the book value of the assets subject to such Liens shall not exceed,
in the aggregate, 15% of the book value of the Borrower’s Consolidated
property, plant and equipment, in each case as such book value is determined in
accordance with GAAP.

(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, except:

(i)            in the case of the
Borrower or a Subsidiary Guarantor,

(A)          Debt in respect of Hedge Agreements
permitted under Section 5.02(m) hereof;

(B)           Debt owed to a Subsidiary Guarantor,
which Debt (x) shall constitute Pledged Debt, (y) shall be
subordinated to the Facilities and on terms acceptable to the Joint Lead
Arrangers and (z) shall be evidenced by promissory notes in form and substance
satisfactory to the Joint Lead Arrangers and such promissory notes shall be
pledged as security for the Obligations of the holder thereof under the Loan
Documents to which such holder is a party and delivered to the Collateral Agent
pursuant to the terms of the Security Agreement;

(C)           so long as no Event of Default has
occurred and is continuing, or would result therefrom, (x) other unsecured
Debt and (y) Debt secured by Liens permitted under
Section 5.02(a)(vi); provided
that before and after giving effect to such Debt, the Borrower is in pro forma compliance with the covenants in
Section 5.04, calculated based on the financial statements most recently
delivered

 63
 

pursuant
to Section 5.03 and as though such Debt had been incurred at the beginning
of the four-quarter period covered thereby;

(ii)           in the case of any
Subsidiary of the Borrower,

(A)          Debt owed to the Borrower or to a
Subsidiary Guarantor, provided
that, in each case, such Debt (x) shall constitute Pledged Debt,
(y) shall be subordinated to the Facilities and on terms acceptable to the
Joint Lead Arrangers and (z) shall be evidenced by promissory notes in
form and substance satisfactory to the Joint Lead Arrangers and such promissory
notes shall be pledged as security for the Obligations of the holder thereof
under the Loan Documents to which such holder is a party and delivered to the
Collateral Agent pursuant to the terms of the Security Agreement;

(B)           so long as no Event of Default has
occurred and is continuing or would result therefrom, other unsecured Debt in
an aggregate principal amount not to exceed $50 million at any one time
outstanding; and

(C)           Debt of a newly-formed or
newly-acquired Subsidiary owed to a Person financing the formation of such Subsidiary or the acquisition of
all of the Equity Interests in or all or substantially all of the assets of
such Subsidiary as contemplated by Section 5.02(f)(vii);

(iii)          in the case of the
Borrower and its Subsidiaries,

(A)          Debt under the Loan Documents,

(B)           so long as no Event of Default has
occurred and is continuing, or would result therefrom, Debt secured by Liens
permitted by Section 5.02(a)(v); provided,
that before and after giving effect to such Debt, the Borrower is in pro forma
compliance with the financial covenants set forth in Section 5.04 hereof
calculated based on the financial statements most recently delivered pursuant
to Section 5.03 and as though such Debt was incurred at the beginning of
the four-quarter period covered thereby, and

(C)           the Surviving Debt, and any Debt
extending the maturity of, or refunding or refinancing, in whole or in part,
any Surviving Debt, provided that
the terms of any such extending, refunding or refinancing Debt, and of any
agreement entered into and of any instrument issued in connection therewith,
are otherwise permitted by the Loan Documents, provided
further that the principal amount of such Surviving Debt shall not
be increased above the principal amount thereof outstanding immediately prior
to such extension, refunding or refinancing (except by an amount equal to a
reasonable premium paid, and reasonable fees and expenses incurred, in
connection with such refinancing), and the direct and contingent obligors
therefor shall not be changed, as a result of or in connection with such
extension, refunding or refinancing, provided
still further that the terms relating to principal amount,
amortization, maturity, collateral (if any) and subordination (if any), and
other material terms taken as a whole, of any such

 64
 

extending, refunding or refinancing Debt, and of any
agreement entered into and of any instrument issued in connection therewith,
are no less favorable in any material respect to the Loan Parties or the Lender
Parties than the terms of any agreement or instrument governing the Surviving
Debt being extended, refunded or refinanced and the interest rate applicable to
any such extending, refunding or refinancing Debt does not exceed the then
applicable market interest rate.

(c)           Change in Nature
of Business.  Make, or permit any of
its Subsidiaries to make, any material change in the nature of its business as
carried on at the date hereof.

(d)           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 Subsidiary of the Borrower may merge into or consolidate
with the Borrower (so long as such Subsidiary is a Subsidiary Guarantor)
or any other Subsidiary of the Borrower, provided that,
in the case of any such merger or consolidation, the Person formed by such
merger or consolidation shall be a wholly owned Subsidiary of the Borrower, provided further that, in the case of any such merger or
consolidation to which a Subsidiary Guarantor is a party, the Person formed by
such merger or consolidation shall be a Subsidiary Guarantor; and

(ii)           in connection with
any acquisition permitted under Section 5.02(f), any Subsidiary of the
Borrower may merge into or consolidate with any other Person or permit any
other Person to merge into or consolidate with it; provided
that the Person surviving such merger shall be a wholly owned Subsidiary of the
Borrower and such Person shall become a Subsidiary Guarantor hereunder;

provided,  however,
that in each case, immediately after giving effect thereto, no event shall
occur and be continuing that constitutes a Default and, in the case of any such
merger to which the Borrower is a party, the Borrower is the surviving
corporation.

(e)           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, except:

(i)            sales of Inventory
in the ordinary course of its business;

(ii)           in a transaction
authorized by Section 5.02(d);

(iii)          so long as no Event
of Default has occurred and is continuing or would occur after giving effect
thereto, sales of assets consisting of real property, plant and equipment for
cash and for fair value in an aggregate amount for all such dispositions from
and after the Closing Date not to exceed, at any time, 10% of the aggregate
amount of property, plant and equipment (determined in accordance with GAAP) as
reflected on the Borrower’s consolidated balance sheet contained in the
financial statements most recently delivered pursuant to Section 5.03(b), it
being understood that for the purposes of sales of assets permitted by this
clause (iii), the Subject Property related to such assets may be sold in
connection therewith;

 65
 

(iv)          sales, transfers and
other dispositions of assets among Loan Parties;

(v)           sales of assets
acquired after the Effective Date that do not constitute Collateral under the
Loan Documents; it being understood that for the purposes of sales of assets
permitted by this clause (v), the Subject Property related to such assets may
be sold in connection therewith; and

(vi)          the sale in one
transaction or series of related transactions, for cash and for fair value, of
all of the Equity Interests or all or substantially all of the assets of a Subsidiary
or related group of Subsidiaries of the Borrower that in any case constitute a
single business, provided that the fair market value of the Equity Interests
and assets so disposed of shall not exceed $250,000,000 in the aggregate.

(f)            Investments in
Other Persons.  Make or hold, or
permit any of its Subsidiaries to make or hold, any Investment in any Person,
except:

(i)            Investments by
(x) the Borrower in Subsidiary Guarantors, (y) Subsidiary Guarantors
in the Borrower and other Subsidiary Guarantors, and (z) the Borrower or
Subsidiary Guarantors in new Subsidiaries, provided, that such Subsidiaries
become Subsidiary Guarantors hereunder;

(ii)           loans and advances
to employees in the ordinary course of the business of the Borrower and its
Subsidiaries as presently conducted in an aggregate principal amount not to
exceed $500,000 at any time outstanding;

(iii)          Investments by the
Borrower and its Subsidiaries in Cash Equivalents;

(iv)          Investments existing
on the date hereof and described on Schedule 4.01(v) hereto;

(v)           Investments by the
Borrower in Hedge Agreements permitted under Section 5.02(b)(i)(A);

(vi)          Investments
consisting of intercompany Debt permitted under Section 5.02(b)(i)(B) or
5.02(b)(ii);

(vii)         so long as no Event
of Default has occurred and is continuing or would occur after giving effect
thereto, other Investments consisting of acquisitions or formations of all or
substantially all of the Equity Interests or assets of another Person; provided that with respect to any Investments made under this
clause (vii):  (A) if such
Investment is in the Equity Interests of such Person, either (1) such Person
shall be a Subsidiary Guarantor hereunder or (2) either (x) such acquisition or
formation is financed with the proceeds of Indebtedness secured by (and only
by) the accounts receivables, inventory and related documents and general
intangibles of the Subsidiary so acquired and its respective Subsidiaries,
which Indebtedness is not recourse to (including by way of guaranty) the
Borrower and its other Subsidiaries or (y) the Borrower otherwise elects in
accordance with Section 5.01(j) that such newly-acquired Subsidiary shall be an
Excluded Subsidiary; (B) immediately before and after giving effect
thereto, no Default

 66
 

shall have
occurred and be continuing or would result therefrom; (C) any company or
business acquired or invested in pursuant to this clause (vii) shall be in
the same or related line of business as the business of the Borrower or any of
its Subsidiaries; (D) immediately after giving effect to the acquisition
of a company or business pursuant to this clause (vii), the Borrower shall
be in pro forma compliance with the covenants
contained in Section 5.04, calculated based on the financial statements
most recently delivered to the Lender Parties pursuant to Section 5.03 and
as though such acquisition had occurred at the beginning of the four-quarter
period covered thereby, as evidenced by a certificate of the Chief Financial
Officer of the Borrower delivered to the Lender Parties demonstrating such
compliance; and (E) within 30 days after the acquisition of a company or
business pursuant to this clause (vii) the Borrower shall provide revised
forecasts of the type referred to in Section 5.03(e) giving pro forma effect to such acquisition;

(viii)        so long as no Event
of Default has occurred and is continuing or would occur after giving effect
thereto, Investments in other Persons that are not controlled by the Borrower
up to an aggregate amount of 10% of the consolidated total assets of the Borrower
(determined in accordance with GAAP) as reflected on the Borrower’s
consolidated balance sheet contained in the financial statements most recently
delivered pursuant to Section 5.03(b); and

(ix)           Investments in
Mesabi Nugget; provided, that, both before and
after giving effect to any such Investment the Borrower is in pro forma
compliance with the covenants contained in Section 5.04, calculated based
on the financial statements most recently delivered to the Lender Parties
pursuant to Section 5.03 and as though such Investment had occurred at the
beginning of the four-quarter period covered thereby.

(g)           Restricted
Payments.  Declare or pay any
dividends, purchase, redeem, retire, defease or otherwise acquire for value any
of its Equity Interests now or hereafter outstanding, return any capital to its
stockholders, partners or members (or the equivalent Persons thereof) as such,
make any distribution of assets, Equity Interests, obligations or securities to
its stockholders, partners or members (or the equivalent Persons thereof) as
such, or permit any of its Subsidiaries to do any of the foregoing, or permit
any of its Subsidiaries to purchase, redeem, retire, defease or otherwise
acquire for value any Equity Interests in the Borrower or to issue or sell any Equity
Interests or accept any capital contributions, except that, so long as no
Default shall have occurred and be continuing at the time of any action
described in clause (i) through (iv) below or would result therefrom:

(i)            the
Borrower may (A) declare and pay dividends and distributions payable only
in common stock of the Borrower, (B)  purchase, redeem, retire, defease or
otherwise acquire shares of its capital stock with the proceeds received
contemporaneously from the issue of new shares of its capital stock with equal
or inferior voting powers, designations, preferences and rights and
(C) purchase, redeem, retire or defease any Debt that is convertible into
Equity Interests,

 67
 

(ii)           any
Subsidiary of the Borrower may (A) declare and pay cash dividends to the
Borrower, (B) declare and pay cash dividends to any other Loan Party of
which it is a Subsidiary and (C) accept capital contributions from its
parent to the extent permitted under Section 5.01(f)(i),

(iii)          the
Borrower may make payments restricted by this Section 5.02(g) so long as
immediately after giving pro forma effect to such payment, the Total
Debt/Consolidated EBITDA Ratio is no higher than 3.50:1.00; provided however during any fiscal quarter of the Borrower
that the Total Debt/Consolidated EBITDA Ratio exceeds 3.50:1.00, then the
Borrower may declare and pay dividends and distributions restricted by this
Section 5.02(g) so long as the aggregate amount of such dividends or
distributions does not exceed $25,000,000 for such fiscal quarter.

(iv)          so
long as no Default has occurred and is continuing or would result therefrom,
the Borrower may make payments of contractual dividends on convertible equity
securities.

(h)           Amendments of
Constitutive Documents.  Amend, or
permit any of its Subsidiaries to amend, its certificate of incorporation or
bylaws or other constitutive documents in any respect which could be materially
adverse to the interest of the Lender Parties.

(i)            Accounting
Changes.  Make or permit any change
in (i) accounting policies or reporting practices, except as required or
permitted by GAAP, or (ii) Fiscal Year.

(j)            Amendment, Etc.,
of Related Documents.  Cancel or
terminate any Related Document (except in connection with the prepayment of any
Debt permitted to be prepaid hereunder) or consent to or accept any
cancellation or termination thereof, amend, modify or change in any manner any
term or condition of any Related Document or give any consent, waiver or
approval thereunder, waive any default under or any breach of any term or condition
of any Related Document, agree in any manner to any other amendment,
modification or change of any term or condition of any Related Document or take
any other action in connection with any Related Document that would impair the
value of the interest or rights of any Loan Party thereunder or that would
impair the rights or interests of any Agent or any Lender Party, or permit any
of its Subsidiaries to do any of the foregoing.

(k)           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 except (i) in favor of the Secured Parties or (ii) in
connection with (A) any Surviving Debt and (B) any purchase money
Debt permitted by Section 5.02(b)(iii)(B) solely to the extent that the
agreement or instrument governing such Debt prohibits a Lien on the property
acquired with the proceeds of such Debt.

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(l)            Partnerships,
Etc.  Become a general partner in any
general or limited partnership or joint venture, 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.

(m)          Speculative
Transactions.  Engage, or permit any
of its Subsidiaries to engage, in any transaction involving commodity options
or futures contracts or any similar speculative transactions other than in any
event transactions entered into in the ordinary course of business consistent with
past practice; it being understood, however, that the Borrower may engage in
interest rate management transactions that are not speculative so long as the
other requirements of this Agreement are complied with.

(n)           Payment
Restrictions Affecting Subsidiaries. 
Directly or indirectly, enter into or suffer to exist, or permit any of
its Subsidiaries to enter into or suffer to exist, any agreement or arrangement
limiting the ability of any of its Subsidiaries to declare or pay dividends or
other distributions in respect of its Equity Interests or repay or prepay any
Debt owed to, make loans or advances to, or otherwise transfer assets to or
invest in, the Borrower or any Subsidiary of the Borrower (whether through a
covenant restricting dividends, loans, asset transfers or investments, a
financial covenant or otherwise), except (i) the Loan Documents and
(ii) any agreement or instrument evidencing Surviving Debt.

(o)           Borrowing Base
Covenant.  At any time after (i) any
assets of a type that would constitute Collateral have been pledged by any
Subsidiary to any Person financing a transaction permitted under Section
5.02(f)(vii) or (ii) the Borrower has elected to designate a newly-formed or
newly-acquired Subsidiary as an Excluded Subsidiary as permitted under Section
5.01(j), then, the Borrower shall not permit at any time thereafter the
aggregate of (x) 85% of the book value of the accounts receivable that
constitute Collateral and (y) 65% of the book value of the inventory that
constitutes Collateral to be less than the sum of (A) the aggregate principal
amount outstanding under the Revolving Credit Facility at such time (including
outstanding Letters of Credit and Swing Line Advances) plus (B) the
aggregate amount of obligations outstanding under Secured Cash Management
Agreements at such time plus (C) the aggregate Agreement Value of all
Secured Hedge Agreements at such time.

Section 5.03.          Reporting
Requirements.  So long as any Advance
or any other Obligation of any Loan Party under any Loan Document 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 Agents and the
Lender Parties:

(a)           Default Notice.  As soon as possible and in any event within
two days after the occurrence of each Default or any event, development or
occurrence reasonably likely to have a Material Adverse Effect continuing on
the date of such statement, a statement of the chief financial officer of the
Borrower setting forth details of such Default and the action that the Borrower
has taken and proposes to take with respect thereto.

 69
 

(b)           Annual Financials.  As soon as available and in any event within
90 days after the end of each Fiscal Year, a copy of the annual audit report
for such year for the Borrower and its Subsidiaries, including therein a
Consolidated balance sheet of the Borrower and its Subsidiaries as of the end
of such Fiscal Year and a Consolidated statement of income and a Consolidated
statement of cash flows of the Borrower and its Subsidiaries for such Fiscal
Year, in each case accompanied by an opinion acceptable to the Required Lenders
of Ernst & Young LLP or other independent public accountants of recognized
standing acceptable to the Required Lenders together with a certificate of a
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.

(c)           Quarterly
Financials.  As soon as available and
in any event within 45 days after the end of each of the first three quarters
of each Fiscal Year, a Consolidated balance sheet of the Borrower and its
Subsidiaries as of the end of such quarter and a Consolidated statement of
income and a Consolidated statement of cash flows of the Borrower and its
Subsidiaries for the period commencing at the end of the previous fiscal
quarter and ending with the end of such fiscal quarter and a Consolidated
statement of income and a Consolidated statement of cash flows of the Borrower
and its Subsidiaries for the period commencing at the end of the previous
Fiscal Year and ending with the end of such quarter, setting forth in each case
in comparative form the corresponding figures for the corresponding date or
period of the preceding Fiscal Year, all in reasonable detail and duly
certified (subject to normal year-end audit adjustments) by a 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) a schedule in form satisfactory to
the Joint Lead Arrangers of the computations used by the Borrower in
determining compliance with the covenants contained in Section 5.04,
provided that in the event of any change in GAAP used in the preparation of
such financial statements, the Borrower shall also provide, if necessary for
the determination of compliance with Section 5.04, a statement of
reconciliation conforming such financial statements to GAAP.

(d)           Monthly Certificate.  To the extent that (i) any assets of a type
that would constitute Collateral have been pledged by any Subsidiary to any
Person financing a transaction permitted under Section 5.02(f)(vii) or (ii) the
Borrower has elected to designate a Subsidiary as an Excluded Subsidiary as
permitted under Section 5.01(j), then, as soon as available and in any event
within 15 days after the end of each month, a certificate of a Financial
Officer of the Borrower, in form and substance satisfactory to the Joint Lead
Arrangers and the Administrative Agents, demonstrating that the aggregate of
(x) 85% of the book value of the accounts receivable that constitute
Collateral, and (y) 65% of the book value of the inventory that
constitutes Collateral exceeds the sum of (A) the aggregate principal amount
outstanding under the Revolving Credit Facility (including outstanding Letters
of Credit and Swing Line Advances plus (B) the aggregate amount of
obligations outstanding under Secured Cash Management Agreements at such

 70
 

time plus
(C) the aggregate Agreement Value of all Secured Hedge Agreements at such time.

(e)           Annual Forecasts.  As soon as available and in any event no
later than 15 days before the end of each Fiscal Year, forecasts prepared by
management of the Borrower, in form satisfactory to the Joint Lead Arrangers,
of balance sheets, income statements and cash flow statements on an annual
basis for the Fiscal Year following such Fiscal Year and for each Fiscal Year
thereafter until the Termination Date. 
Such forecasts shall set forth a statement of the principal assumptions
reflected therein.

(f)            Litigation.  Promptly after the commencement thereof,
notice of all actions, suits, investigations, litigation and proceedings in
which the amount involved is in excess of $25,000,000 before any court or
governmental department, commission, board, bureau, agency or instrumentality,
domestic or foreign, affecting any Loan Party or any of its Subsidiaries of the
type described in Section 4.01(f), and promptly after the occurrence
thereof, notice of any material adverse change in the status or the financial
effect on any Loan Party or any of its Subsidiaries of the Disclosed Litigation
from that described on Schedule 4.01(f) hereto.

(g)           Securities
Reports.  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.

(h)           Creditor Reports.  (i) Promptly after the furnishing thereof,
copies of any statement or report furnished to any holder of Senior Notes, and
(ii) promptly after the furnishing thereof, copies of any default notice
furnished to any holder of Debt securities in the aggregate outstanding in
excess of $25,000,000 of any Loan Party or of any of its Subsidiaries pursuant
to the terms of any indenture, loan or credit or similar agreement and not
otherwise required to be furnished to the Lender Parties pursuant to any other
clause of this Section 5.03.

(i)            Agreement Notices.  Promptly upon receipt thereof, copies of all
notices, requests and other documents received by any Loan Party or any of its
Subsidiaries under or pursuant to any Related Document or instrument,
indenture, loan or credit or similar agreement regarding or related to any
breach or default by any party thereto or any other event that could materially
impair the value of the interests or the rights of any Loan Party or otherwise
have a Material Adverse Effect and copies of any amendment, modification or
waiver of any provision of any Related Document or instrument, indenture, loan
or credit or similar agreement and, from time to time upon request by the
Paying Agent, such information and reports regarding the Related Documents and
such instruments, indentures and loan and credit and similar agreements as the
Paying Agent may reasonably request.

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(j)            Revenue Agent
Reports.  Within 10 days after
receipt, copies of all Revenue Agent Reports (Internal Revenue Service Form
886), or other written proposals of the Internal Revenue Service, that propose,
determine or otherwise set forth positive adjustments to the Federal income tax
liability of the affiliated group (within the meaning of
Section 1504(a)(1) of the Internal Revenue Code) of which the Borrower is
a member aggregating $25,000,000 or more.

(k)           ERISA.  ERISA Events and ERISA Reports.  (A) Promptly and in any event within 10
days after any Loan Party or any ERISA Affiliate knows or has reason to know
that any ERISA Event has occurred, a statement of the Chief Financial Officer
of the Borrower describing such ERISA Event and the action, if any, that such
Loan Party or such ERISA Affiliate has taken and proposes to take with respect
thereto and (B) on the date any records, documents or other information must
be furnished to the PBGC with respect to any Plan pursuant to Section 4010
of ERISA, a copy of such records, documents and information.

(i)            Plan
Terminations.  Promptly and in any
event within two Business Days after receipt thereof by any Loan Party or any
ERISA Affiliate, copies of each notice from the PBGC stating its intention to
terminate any Plan or to have a trustee appointed to administer any Plan.

(ii)           Plan Annual
Reports.  Promptly and in any event
within 30 days after the filing thereof with the Internal Revenue Service,
copies of each Schedule B (Actuarial Information) to the annual report
(Form 5500 Series) with respect to each Plan.

(iii)          Multiemployer
Plan Notices.  Promptly and in any
event within five Business Days after receipt thereof by any Loan Party or any
ERISA Affiliate from the sponsor of a Multiemployer Plan, copies of each notice
concerning (A) the imposition of Withdrawal Liability by any such
Multiemployer Plan, (B) the reorganization or termination, within the meaning
of Title IV of ERISA, of any such Multiemployer Plan or (C) the amount of
liability incurred, or that may be incurred, by such Loan Party or any ERISA
Affiliate in connection with any event described in clause (A) or (B).

(l)            Environmental
Conditions.  Promptly after the
assertion or occurrence thereof, notice of any Environmental Action against or
of any noncompliance by any Loan Party or any of its Subsidiaries with any
Environmental Law or Environmental Permit that could reasonably be expected to
have a Material Adverse Effect.

(m)          Insurance.  As soon as available and in any event within
30 days after the end of each Fiscal Year, a report summarizing the insurance
coverage (specifying type, amount and carrier) in effect for each Loan Party
and its Subsidiaries and containing such additional information as any Agent,
or any Lender Party through the Paying Agent, may reasonably specify.

(n)           Other Information.  Such other information respecting the
business, condition (financial or otherwise), operations, performance,
properties or prospects of

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any Loan Party
or any of its Subsidiaries as any Agent or the Joint Lead Arrangers, or any
Lender Party through the Paying Agent, may from time to time reasonably
request.

Section 5.04.          Financial
Covenants.  So long as any Advance or
any other Obligation of any Loan Party under any Loan Document shall remain
unpaid, any Letter of Credit shall be outstanding or any Lender Party shall
have any Commitment hereunder, the Borrower will:

(a)           Total Debt to
Consolidated EBITDA Ratio.  Maintain
at all times a Total Debt/Consolidated EBITDA Ratio of not more than 5.00 :
1.00.

(b)           Interest Coverage
Ratio.  Maintain at all times an
Interest Coverage Ratio of not less than 2.00 : 1.00.

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)           (i) the
Borrower shall fail to pay any principal of any Advance when the same shall
become due and payable or (ii) the Borrower shall fail to pay any interest
on any Advance, or any Loan Party shall fail to make any other payment under
any Loan Document, in each case under this clause (ii) within two Business
Days after the same becomes due and payable; or

(b)           any representation
or warranty made by any Loan Party (or any of its officers) under or in
connection with any Loan Document shall prove to have been incorrect in any
material respect when made; or

(c)           the Borrower shall
fail to perform or observe any term, covenant or agreement contained in
Section 2.14, 5.01(e), (f), (i), (j), (m) or (p), 5.02, 5.03 or 5.04; provided that the Borrower shall have a cure period of three
Business Days for any failure to perform or observe the covenant contained in
Section 5.02(p); or

(d)           any Loan Party shall
fail to perform or observe 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 10 days after the earlier of the date on which (i) a
Responsible Officer becomes aware of such failure or (ii) written notice
thereof shall have been given to the Borrower by any Agent or any Lender Party;
or

(e)           any Loan Party, any
of its Subsidiaries or any Excluded Subsidiary to the extent its Obligations
are guaranteed by a Loan Party shall fail to pay any principal of, premium or
interest on or any other amount payable in respect of any Debt of such Loan
Party, such Subsidiary or such Excluded Subsidiary (as the case may be) that is
outstanding in a principal amount (or, in the case of any Hedge Agreement, an
Agreement Value) of at least $5,000,000 either individually or in the aggregate
(but

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excluding Debt
outstanding hereunder), 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, in
each case prior to the stated maturity thereof; or

(f)            any Loan Party or
any of its Subsidiaries shall generally not pay its debts as such debts become
due, or shall admit in writing its inability to pay its debts generally, or
shall make a general assignment for the benefit of creditors; or any proceeding
shall be instituted by or against any Loan Party or any of its Subsidiaries
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 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 30 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)           any judgments or
orders, either individually or in the aggregate, for the payment of money in
excess of $5,000,000 shall be rendered against any Loan Party or any of its
Subsidiaries and shall remain unpaid and either (i) enforcement proceedings
shall have been commenced by any creditor upon such judgment or order or
(ii) 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

(h)           any non-monetary
judgment or order shall be rendered against any Loan Party or any of its
Subsidiaries that could be reasonably likely to 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

(i)            any provision of
any Loan Document after delivery thereof pursuant to Section 3.01 or
5.01(j) shall for any reason cease to be valid and binding on or

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enforceable
against any Loan Party party to it, or any such Loan Party shall so state in
writing; or

(j)            any Collateral
Document or financing statement after delivery thereof pursuant to
Section 3.01 or 5.01(j) 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

(k)           a Change of Control
shall occur; or

(l)            any ERISA Event
shall have occurred with respect to a Plan and the sum (determined as of the
date of occurrence of such ERISA Event) of the Insufficiency of such Plan and
the Insufficiency of any and all other Plans with respect to which an ERISA
Event shall have occurred and then exist (or the liability of the Loan Parties
and the ERISA Affiliates related to such ERISA Event) exceeds $3,000,000; or

(m)          any Loan Party or any
ERISA Affiliate shall have been notified by the sponsor of a Multiemployer Plan
that it has incurred Withdrawal Liability to such Multiemployer Plan in an
amount that, when aggregated with all other amounts required to be paid to
Multiemployer Plans by the Loan Parties and the ERISA Affiliates as Withdrawal
Liability (determined as of the date of such notification), exceeds $3,000,000
or requires payments exceeding $500,000 per annum; or

(n)           any Loan Party or
any ERISA Affiliate shall have been notified by the sponsor of a Multiemployer
Plan that such Multiemployer Plan is in reorganization or is being terminated,
within the meaning of Title IV of ERISA, and as a result of such reorganization
or termination the aggregate annual contributions of the Loan Parties and the
ERISA Affiliates to all Multiemployer Plans that are then in reorganization or
being terminated have been or will be increased over the amounts contributed to
such Multiemployer Plans for the plan years of such Multiemployer Plans
immediately preceding the plan year in which such reorganization or termination
occurs by an amount exceeding $3,000,000;

then, and in any such event, the Paying Agent
(i) shall at the request, or may with the consent, of the Required
Lenders, by notice to the Borrower, declare the Commitments of each Lender
Party and the obligation of each Lender Party to make Advances (other than Letter
of Credit Advances by an Issuing Bank or a Revolving Credit Lender pursuant to
Section 2.03(c) and Swing Line Advances by a Revolving Credit Lender
pursuant to Section 2.02(b)) and of the Issuing Banks to issue Letters of
Credit to be terminated, whereupon the same shall forthwith terminate, and
(ii) shall at the request, or may with the consent, of the Required
Lenders, (A) by notice to the Borrower, 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, (B) 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 and (C) by notice to any Issuing Bank,

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direct such Issuing Bank to deliver a Default
Termination Notice to the beneficiary of each Standby Letter of Credit issued
by it, and such Issuing Bank shall deliver such Default Termination Notices; provided,
however, that in the event of an actual or deemed entry of an order for
relief with respect to the Borrower under the Federal Bankruptcy Code,
(x) the Commitments of each Lender Party and the obligation of each Lender
Party to make Advances (other than Letter of Credit Advances by an Issuing Bank
or a Revolving Credit Lender pursuant to Section 2.03(c) and Swing Line
Advances by a Revolving Credit Lender pursuant to Section 2.02(b)) and of
the Issuing Banks to issue Letters of Credit shall automatically be terminated
and (y) the Notes, all such interest and all such amounts shall
automatically become and be due and payable, without presentment, demand,
protest or any notice of any kind, all of which are hereby expressly waived by
the Borrower.

Section 6.02.          Actions
in Respect of the Letters of Credit upon Default.  If any Event of Default shall have occurred
and be continuing, the Paying Agent may, or shall at the request of the
Required Lenders, irrespective of whether it is taking any of the actions
described in Section 6.01 or otherwise, make demand upon the Borrower to,
and forthwith upon such demand the Borrower will, pay to the Collateral Agent
on behalf of the Lender Parties in same day funds at the Collateral Agent’s
office designated in such demand, for deposit in the L/C Cash Collateral
Account, an amount equal to the aggregate Available Amount of all Letters of
Credit then outstanding.  If at any time
the Paying Agent or the Collateral Agent determines that any funds held in the
L/C Cash Collateral Account are subject to any right or claim of any Person
other than the Agents and the Lender Parties or that the total amount of such
funds is less than the aggregate Available Amount of all Letters of Credit, the
Borrower will, forthwith upon demand by the Paying Agent or the Collateral
Agent, pay to the Collateral Agent, as additional funds to be deposited and
held in the L/C Cash Collateral Account, an amount equal to the excess of
(a) such aggregate Available Amount over (b) the total amount of
funds, if any, then held in the L/C Cash Collateral Account that the Paying
Agent or the Collateral Agent, as the case may be, determines to be free and
clear of any such right and claim.  Upon
the drawing of any Letter of Credit for which funds are on deposit in the L/C
Cash Collateral Account, such funds shall be applied to reimburse the Issuing
Banks or Revolving Credit Lenders, as applicable, to the extent permitted by
applicable law.

ARTICLE
VII

THE
AGENTS, ETC.

Section 7.01.          Authorization
and Action.  Each Lender Party (in
its capacities as a Lender, the Swing Line Bank (if applicable), an Issuing
Bank (if applicable) and on behalf of itself and its Affiliates as potential
Hedge Banks) hereby appoints and authorizes the Joint Lead Arrangers and each
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 Joint Lead Arrangers and such Agent by the terms hereof and
thereof, together with such powers and discretion as are reasonably incidental
thereto.  As to any matters not expressly
provided for by the Loan Documents (including, without limitation, enforcement
or collection of the Notes), no Agent nor the Joint Lead Arrangers shall be required
to exercise any discretion or take any action, but shall be required to act or
to refrain from acting (and shall be fully protected in so acting or refraining
from acting) upon the instructions of the Required Lenders, and such

 76
 

instructions shall be
binding upon all Lender Parties and all holders of Notes; provided, however, that no Agent nor the
Joint Lead Arrangers shall be required to take any action that exposes such
Agent nor the Joint Lead Arrangers to personal liability or that is contrary to
this Agreement or applicable law.  Each 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.          Reliance,
Etc.  Neither the Joint Lead
Arrangers nor any Agent nor any of their respective 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. 
Without limitation of the generality of the foregoing, the Joint Lead
Arrangers and each Agent:  (a) may
treat the payee of any Note as the holder thereof until, in the case of the
Paying Agent, the Paying Agent receives and accepts an Assignment and
Assumption entered into by the Lender that is the payee of such Note, as
assignor, and an Eligible Assignee, as assignee, or, in the case of any other
Agent or the Joint Lead Arrangers, such Agent or the Joint Lead Arrangers has
received notice from the Paying Agent that it has received and accepted such
Assignment and Assumption, in each case as provided in Section 8.07;
(b) 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;
(c) makes no warranty or representation to any Lender Party and shall not
be responsible to any Lender Party for any statements, warranties or
representations (whether written or oral) made in or in connection with the
Loan Documents; (d) shall not have any duty to ascertain or to inquire as
to the performance or observance of any of the terms, covenants or conditions
of any Loan Document on the part of any Loan Party or to inspect the property
(including the books and records) of any Loan Party; (e) shall not be
responsible to any Lender Party for the due 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, any Loan Document or any other instrument or
document furnished pursuant thereto; and (f) shall incur no liability
under or in respect of any Loan Document by acting upon any notice, consent,
certificate or other instrument or writing (which may be by telegram, telecopy
or telex) believed by it to be genuine and signed or sent by the proper party
or parties.

Section 7.03.          Bank
of America, N.A., National City Bank, Wells Fargo Bank, National Association
and Affiliates.  With respect to its
Commitments, the Advances made by it and the Notes issued to it, each of Bank
of America, N.A., National City Bank and Wells Fargo Bank, National Association
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 an Agent; and the
term “Lender Party” or “Lender Parties” shall, unless
otherwise expressly indicated, include Bank of America, N.A., National City
Bank and Wells Fargo Bank, National Association in their respective individual
capacities.  Bank of America, N.A.,
National City Bank and Wells Fargo Bank, National Association  and their respective 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
business with, any Loan Party, any of its Subsidiaries and any Person that may
do business with or own securities of any Loan Party or any such Subsidiary,
all as if Bank of America, N.A., National City Bank and Wells Fargo Bank,
National Association were not Agents and without any duty to account therefor
to the Lender Parties.

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Section 7.04.          Lender
Party Credit Decision.  Each Lender
Party acknowledges that it has, independently and without reliance upon any
Agent, the Joint Lead Arrangers or any other Lender Party and based on the
financial statements referred to in Section 4.01 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 any Agent, the Joint Lead Arrangers 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.

Section 7.05.          Indemnification.

(a)           Each
Lender Party severally agrees to indemnify each Lead Arranger and each 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 such Agent in any way
relating to or arising out of the Loan Documents or any action taken or omitted
by such Agent under the Loan Documents (collectively, the “Indemnified Costs”); 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 such Agent’s or such
Lead Arranger’s gross negligence or willful misconduct as found in a final,
non-appealable judgment by a court of competent jurisdiction with respect to
such Agent or the Joint Lead Arrangers, as the case may be.  Without limitation of the foregoing, each
Lender Party agrees to reimburse the Joint Lead Arrangers and each Agent
promptly upon demand for its ratable share of any costs and expenses
(including, without limitation, fees and expenses of counsel) payable by the
Borrower under Section 8.04, to the extent that such Lead Arranger or such
Agent is not promptly reimbursed for such costs and expenses by the
Borrower.  In the case of any
investigation, litigation or proceeding giving rise to any Indemnified Costs,
this Section 7.05 applies whether any such investigation, litigation or
proceeding is brought by any Lender Party or any other Person.

(b)           Each
Lender Party severally agrees to indemnify 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 such Issuing Bank in any way relating to
or arising out of the Loan Documents or any action taken or omitted by 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 such Issuing Bank’s gross negligence or willful misconduct as
found in a final, non-appealable judgment by a court of competent
jurisdiction.  Without limitation of the
foregoing, each Lender Party agrees to reimburse such Issuing Bank promptly
upon demand for its ratable share of any costs and expenses (including, without
limitation, fees and expenses of counsel) payable by the Borrower under
Section 8.04, to the extent that such Issuing Bank is not promptly
reimbursed for such costs and expenses by the Borrower.

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(c)           For purposes of this
Section 7.05, 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 Available Amount of all Letters of Credit outstanding at such
time and (iii) their respective Unused Revolving Credit Commitments at
such time; provided that the aggregate principal amount of Swing Line Advances
owing to the Swing Line Bank and of Letter of Credit Advances owing to such
Issuing Bank shall be considered to be owed to the Revolving Credit Lenders
ratably in accordance with their respective Revolving Credit Commitments.  The failure of any Lender Party to reimburse
any Agent or any Issuing Bank, as the case may be, promptly upon demand for its
ratable share of any amount required to be paid by the Lender Parties to such
Agent or such Issuing Bank, as the case may be, as provided herein shall not
relieve any other Lender Party of its obligation hereunder to reimburse such
Agent or such Issuing Bank, as the case may be, for its ratable share of such
amount, but no Lender Party shall be responsible for the failure of any other
Lender Party to reimburse such Agent or such Issuing Bank, as the case may be,
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 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
Agents.  Any Agent may resign at any
time by giving written notice thereof to the Lender Parties and the Borrower
and may be removed at any time with or without cause by the Required
Lenders.  Upon any such resignation or
removal, the Required Lenders shall have the right to appoint a successor Agent.  If no successor Agent shall have been so
appointed by the Required Lenders, and shall have accepted such appointment,
within 30 days after the retiring Agent’s giving of notice of resignation or
the Required Lenders’ removal of the retiring Agent, then the retiring Agent
may, on behalf of the Lender Parties, appoint a successor Agent, which shall be
a commercial bank 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
Agent hereunder by a successor Agent and, in the case of a successor Collateral
Agent, 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 Required Lenders may request, in order to
continue the perfection of the Liens granted or purported to be granted by the
Collateral Documents, such successor Agent shall succeed to and become vested with
all the rights, powers, discretion, privileges and duties of the retiring
Agent, and the retiring Agent shall be discharged from its duties and
obligations under the Loan Documents.  If
within 45 days after written notice is given of the retiring Agent’s
resignation or removal under this Section 7.06 no successor Agent shall
have been appointed and shall have accepted such appointment, then on such 45th
day (a) the retiring Agent’s resignation or removal shall become
effective, (b) the retiring Agent shall thereupon be discharged from its
duties and obligations under the Loan Documents (except in the case of any
collateral security held by any Agent on behalf of the Secured Parties under
any of the Loan Documents, the retiring Agent shall continue to hold such
collateral security until such time as a successor Agent is appointed) and
(c) the Required Lenders shall thereafter perform all duties of the
retiring Agent under the Loan Documents until such time, if any, as the
Required Lenders appoint a successor Agent as provided above.  After any retiring Agent’s resignation or
removal hereunder as Agent shall have become effective, the provisions of this
Article VII shall

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inure to its benefit as
to any actions taken or omitted to be taken by it while it was Agent under this
Agreement.

Section 7.07.          The
Joint Lead Arrangers, the Syndication Agent and the Documentation Agent.  It is understood and agreed by all parties
hereto that neither the Joint Lead Arrangers, nor the Syndication Agent, nor
the Documentation Agent shall have any duties or responsibilities under this
Agreement (except, as to the Joint Lead Arrangers, for certain approval rights
expressly provided for herein), and shall have no liability for any actions
taken or not taken in connection with this Agreement or the other Transaction
Documents.

Article VIII

MISCELLANEOUS

Section 8.01.          Amendments, Etc.  No amendment or waiver of any provision of
this Agreement or the Notes or any other Loan Document, nor consent to any
departure by any Loan Party 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 the Required Lenders, and then such waiver or
consent shall be effective only in the specific instance and for the specific
purpose for which given; provided, however, that (a) no
amendment, waiver or consent shall, unless in writing and signed by all of the
Lenders (other than any Lender Party that is, at such time, a Defaulting
Lender), do any of the following at any time: 
(i) decrease the percentage of (x) the Commitments,
(y) the aggregate unpaid principal amount of the Advances or (z) the
aggregate Available Amount of outstanding Letters of Credit that, in each case,
shall be required for the Lenders or any of them to take any action hereunder,
(ii) reduce or limit the obligations of any Guarantor under Section 1
of the Guaranty issued by it or, except in connection with a permitted asset
sale, release such Guarantor or otherwise limit such Guarantor’s liability with
respect to the Obligations owing to the Agents and the Lender Parties, in each
case if such reduction, release or limitation is in respect of all or
substantially all of the value of the Guaranties, (iii) release all or
substantially all of the Collateral in any transaction or series of related
transactions, (iv) amend Section 2.13 or this Section 8.01 and
(b) no amendment, waiver or consent shall, unless in writing and signed by
each Lender (other than any Lender that is, at such time, a Defaulting Lender)
that has a Commitment under the Revolving Credit Facility if such Lender is
directly affected by such amendment, waiver or consent, (i) increase the
Commitments of such Lender, (ii) reduce the principal of, or interest on,
the Notes held by such Lender or any fees or other amounts payable hereunder to
such Lender, (iii) postpone any date fixed for any scheduled payment of
principal of, or interest on, the Notes held by such Lender or any fees or
other amounts payable hereunder to such Lender, (iv) change the order of
application of any prepayment set forth in Section 2.06 in any manner that
materially affects such Lender; provided
further that no amendment, waiver or consent shall, unless in writing
and signed by the Swing Line Bank or an 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 Swing Line Bank or of such Issuing Bank, as the case may
be, under this Agreement; and provided
further that no amendment, waiver or consent shall, unless in
writing and signed by an Agent in addition to the Lenders required above to
take such action, affect the rights or duties of such Agent under this
Agreement or the other Loan Documents.

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Section 8.02.          Notices,
Etc.  (a)  All notices and other communications provided
for hereunder shall be in writing (including telegraphic, telecopy or telex
communication) and mailed, telegraphed, telecopied, telexed or delivered, if to
the Borrower, at its address at 6714 Pointe Inverness Way, Fort Wayne, Indiana
46804, Attention:  Theresa E. Wagler
(facsimile 260-969-3587); if to any Initial Lender Party, at its Domestic
Lending Office specified opposite its name on Schedule I hereto; if to any
other Lender Party, at its Domestic Lending Office specified in the Assignment
and Assumption pursuant to which it became a Lender Party; if to the Collateral
Agent, at its address at 629 Euclid Avenue, Locator 01-3028, Cleveland, OH
44114, Attention: Brigitte McLin (facsimile 216-222-0192); and if to the Paying
Agent, at its address at 629 Euclid Avenue, Locator 01-3028, Cleveland, OH
44114, Attention: Candace Marsky (facsimile 216-222-0012) and with respect to
notices and/or deliveries pursuant to Section 5.03 with a copy to 110 West
Berry Street, Suite 800, Fort Wayne, IN 46802, Attention: David McNeely
(facsimile 260-461-6238); or, as to the Borrower or the Paying Agent, at 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 Paying
Agent.  All such notices and other
communications shall, when mailed, telegraphed, telecopied or telexed, be
effective when deposited in the mails, delivered to the telegraph company,
transmitted by telecopier or confirmed by telex answerback, respectively,
except that notices and communications to any Agent pursuant to
Article II, III or VII shall not be effective until received by such Agent.  Delivery by telecopier 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 an original executed counterpart thereof.

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

Section 8.03.          No
Waiver; Remedies.  No failure on the
part of any Lender Party or any Agent to exercise, and no delay in exercising,
any right hereunder or under any Note or any other Loan Document 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 provided in the Loan
Documents are cumulative and not exclusive of any remedies provided by law.

Section 8.04.          Costs
and Expenses.  (a)  The Borrower agrees to pay on demand
(i) all costs and expenses of the Joint Lead Arrangers and, after the
Initial Extension of Credit, and except as otherwise provided in this
Agreement, also each 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,
syndication, transportation, computer, duplication, appraisal, audit,
insurance, consultant, search, filing and recording fees and expenses and
(B) the reasonable fees and expenses of counsel for the Joint Lead
Arrangers and, after the Initial Extension of Credit, also each Agent with
respect thereto,

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including the reasonable
fees and expenses of Shearman & Sterling LLP with respect to advising the
Joint Lead Arrangers or such 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, it being understood and agreed
that with respect to the payment of legal fees and expenses, unless and until
the circumstances set forth in clause (ii) below shall occur, the Borrower
shall only be responsible for the fees and expenses of Shearman & Sterling
LLP and any local counsel selected by it in connection with any and all of the
foregoing), and (ii) all costs and expenses of each of the Joint Lead
Arrangers, each Agent and each Lender Party in connection with the enforcement
of and/or the protection of its rights under the Loan Documents and Advances
made and Letters of Credit issued hereunder, whether in any action, suit or
litigation, or any bankruptcy, insolvency or other similar proceeding affecting
creditors’ rights generally, or any workout, restructuring or negotiations in
respect of the Loan Documents, such Advances or such Letters of Credit
(including, without limitation, the reasonable fees and expenses of counsel for
each of the Joint Lead Arrangers, the Administrative Agents and each Lender
Party with respect thereto).

(b)           The Borrower agrees
to indemnify, defend and save and hold harmless each of the Joint Lead
Arrangers, each Agent, each Lender Party and each of their Affiliates and their
respective partners, officers, directors, employees, agents and advisors (each,
an “Indemnified Party”)
from and against, and shall pay on demand, any and all claims, damages,
settlement costs, losses, liabilities and expenses (including, without
limitation, reasonable fees and expenses of counsel (including the allocated
cost of internal 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
actual or prospective claim, investigation, litigation or proceeding or
preparation of a defense in connection therewith) (i) the Facilities, the
actual or proposed use of the proceeds of the Advances or the Letters of
Credit, the Transaction Documents, the performance by the parties hereto of
their respective obligations hereunder or thereunder or any of the transactions
contemplated thereby or (ii) the actual or alleged presence or release of
Hazardous Materials on any property owned or operated by 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 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, whether or not any Indemnified Party is otherwise a party
thereto and whether or not the Transaction is consummated, IN ALL CASES, WHETHER OR NOT CAUSED BY OR ARISING, IN
WHOLE OR IN PART, OUT OF THE COMPARATIVE, CONTRIBUTORY OR SOLE NEGLIGENCE OF
THE INDEMNIFIED PARTY.  The
Borrower also agrees not to assert, and hereby waives, any claim against any
Lead Arranger, Agent, any Lender Party or any of their Affiliates, or any of
their respective partners, officers, directors, employees, agents and

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advisors, on
any theory of liability, for special, indirect, consequential or punitive
damages arising out of or otherwise relating to the Facilities, the actual or
proposed use of the proceeds of the Advances or the Letters of Credit, the
Transaction Documents or any of the transactions contemplated by the
Transaction Documents.  No Indemnified
Party shall be liable for any damages arising from the use by unintended
recipients of any information or other materials distributed by it through
telecommunications, electronic or other information transmission systems in
connection with this Agreement or the other Loan Documents or the transactions
contemplated hereby or thereby.

(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(d), acceleration of the
maturity of the Notes pursuant to Section 6.01 or for any other reason, or
by an Eligible Assignee to a Lender Party other than on the last day of the
Interest Period for such Advance upon an assignment of rights and obligations
under this Agreement pursuant to Section 8.07 as a result of a demand by
the Borrower pursuant to Section 8.07(a), or if the Borrower fails to make
any payment or prepayment of an Advance for which a notice of prepayment has
been given or that is otherwise required to be made, whether pursuant to
Section 2.04, 2.06 or 6.01 or otherwise, the Borrower shall, upon demand
by such Lender Party (with a copy of such demand to the Paying Agent), pay to
the Paying 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 incur as a result of such payment or Conversion or such failure to pay
or prepay, as the case may be, 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 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
Paying 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 Paying Agent to declare the Notes due and
payable pursuant to the provisions of Section 6.01, each Agent and each
Lender Party and each of their 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 Agent, 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

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the Loan Documents,
irrespective of whether such Agent or such Lender Party shall have made any
demand under this Agreement or such Note or Notes and although such Obligations
may be unmatured.  Each Agent and 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 Agent and each Lender
Party and their respective Affiliates under this Section are in addition
to other rights and remedies (including, without limitation, other rights of
set-off) that such Agent, such Lender Party and their respective Affiliates may
have.

Section 8.06.          Binding
Effect.  This Agreement shall become
effective when it shall have been executed by the Borrower and each Agent and
the Paying Agent shall have been notified by each Initial Lender Party that
such Initial Lender Party has executed it and thereafter shall be binding upon
and inure to the benefit of the Borrower, each Agent and each Lender Party and
their respective successors and assigns, except that the Borrower shall not
have the right to assign its rights hereunder or any interest herein without
the prior written consent of the Lender Parties.

Section 8.07.          Assignments
and Participations.

(a)           Each Lender may, and
(following a demand by such Lender pursuant to Section 2.10 or 2.12) upon
at least five Business Days’ notice to such Lender and the Paying Agent, will
assign to one or more Eligible Assignees all or a portion of its rights and
obligations under this Agreement (including, without limitation, all or a
portion of its Commitment or Commitments, the Advances owing to it and the Note
or Notes held by it); provided,
however, that (i) each such assignment shall be of a uniform, and not a
varying, percentage of all rights and obligations under and in respect of one
or more Facilities, (ii) 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 an Approved Fund of any Lender or an assignment of all of a Lender’s
rights and obligations under this Agreement, the aggregate amount of the
Commitments being assigned to such Eligible Assignee pursuant to such
assignment (determined as of the date of the Assignment and Assumption with
respect to such assignment) shall in no event be less than $1,000,000 (or such
lesser amount as shall be approved by the Paying Agent and, so long as no
Default shall have occurred and be continuing at the time of effectiveness of
such assignment, the Borrower), (iii) each such assignment shall be to an
Eligible Assignee, and (iv) the parties to each such assignment shall
execute and deliver to the Paying Agent, for its acceptance (other than as to
assignments to then existing Lenders and/or their Affiliates) and recording in
the Register, an Assignment and Assumption, together with any Note or Notes
subject to such assignment and together with a processing and recordation fee
in the amount of $3,500; provided, however, that the processing
and recordation fee set forth in sub-clause (iv) above shall not be
payable (A) with respect to an assignment by any Lender Party to an
Affiliate or an Approved Fund of such Lender Party, or (B) with respect to
an assignment (x) which is both by and to an existing Lender Party or
(y) with a stated effective date occurring prior to the 90th day after the
Effective Date hereof.

(b)           Upon such execution,
delivery, acceptance and recording, from and after the effective date specified
in such Assignment and Assumption, (i) the assignee thereunder shall be a
party hereto and, to the extent that rights and obligations hereunder have been
assigned to it

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pursuant to
such Assignment and Assumption, have the rights and obligations of a Lender or
an Issuing Bank, as the case may be, hereunder and (ii) the Lender or an
Issuing Bank assignor thereunder shall, to the extent that rights and
obligations hereunder have been assigned by it pursuant to such Assignment and
Assumption, relinquish its rights (other than its rights under
Sections 2.10, 2.12 and 8.04 to the extent any claim thereunder relates to
an event arising prior to such assignment) and be released from its obligations
under this Agreement (and, in the case of an Assignment and Assumption covering
all of the remaining portion of an assigning Lender’s or an Issuing Bank’s
rights and obligations under this Agreement, such Lender or such Issuing Bank
shall cease to be a party hereto).

(c)           By executing and
delivering an Assignment and Assumption, each Lender Party assignor thereunder
and each assignee thereunder confirm to and agree with each other and the other
parties thereto and hereto as follows: 
(i) other than as provided in such Assignment and Assumption, 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 any 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, any Loan Document or any other
instrument or document furnished pursuant thereto; (ii) such assigning Lender
Party makes no representation or warranty and assumes no responsibility with
respect to the financial condition of any 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 4.01 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 Assumption;
(iv) such assignee will, independently and without reliance upon any
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 confirms that it is an Eligible Assignee;
(vi) such assignee appoints and authorizes each 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 such Agent by the terms hereof and thereof,
together with such powers and discretion as are reasonably incidental thereto;
and (vii) such assignee agrees that it will perform in accordance with
their terms all of the obligations that by the terms of this Agreement are
required to be performed by it as a Lender or an Issuing Bank, as the case may
be.

(d)           The Paying Agent
shall maintain at its address referred to in Section 8.02 a copy of each
Assignment and Assumption delivered to and accepted by it and a register for
the recordation of the names and addresses of the Lender Parties and the
Commitment under each Facility of, and principal amount of the Advances owing
under each 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 Agents and the Lender Parties may 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 Agent or any Lender Party at
any reasonable time and from time to time upon reasonable prior notice.

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(e)           Upon its receipt of
an Assignment and Assumption executed by an assigning Lender Party and an
assignee, together with any Note or Notes subject to such assignment, the
Paying Agent shall, if such Assignment and Assumption has been completed and is
in substantially the form of Exhibit C hereto, (i) accept such
Assignment and Assumption, (ii) record the information contained therein
in the Register and (iii) give prompt notice thereof to the Borrower and
each other Agent.  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
Paying Agent in exchange for the surrendered Note or Notes a new Note to the
order of such Eligible Assignee in an amount equal to the Commitment assumed by
it under each Facility pursuant to such Assignment and Assumption and, if any
assigning Lender has retained a Commitment hereunder under such Facility, a new
Note to the order of such 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 Assumption and shall otherwise be in
substantially the form of Exhibit A hereto.

(f)            Each Issuing Bank
may assign to an Eligible Assignee all or a portion of its rights and
obligations under the undrawn portion of its Letter of Credit Commitment at any
time; provided, however, that
each such assignment shall be to an Eligible Assignee and the parties to each
such assignment shall execute and deliver to the Paying Agent, for its
acceptance and recording in the Register, an Assignment and Assumption.

(g)           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
Commitments, the Advances owing to it and the Note or Notes (if any) held by
it); provided, however, that (i) such Lender Party’s 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 Agents 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 and (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 on, the Notes or any fees or other amounts payable hereunder,
in each case to the extent subject to such participation, postpone any date
fixed for any payment of principal of, or interest on, the Notes or any fees or
other amounts payable hereunder, in each case to the extent subject to such
participation, or release all or substantially all of the Collateral.

(h)           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.

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(i)            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.

Section 8.08.          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 an original executed counterpart of this Agreement.

Section 8.09.          No Liability of the Issuing Banks.  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 the Agents, the Lenders nor any Issuing Bank nor any of their
respective 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 such 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;
(d) any error, omission, interruption, loss or delay in transmission or delivery
of any draft, notice or other communication under or relating to any Letter of
Credit (including any document required to make a drawing thereunder), or any
error in interpretation of technical terms therein; or (e) 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 such 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 (i) such Issuing Bank’s 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) such Issuing Bank’s willful failure 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 of the foregoing and without
limiting the generality thereof, the parties agree that, with respect to
documents presented which appear on their face to be in substantial compliance
with the terms of a Letter of Credit, such Issuing Bank may, in its sole
discretion, either accept and make payment upon such documents without
responsibility for further investigation, regardless of any notice or
information to the contrary, or refuse to accept and make payment upon such
documents if such documents are not in strict compliance with the terms of such
Letter of Credit.

Section 8.10.          Confidentiality.  Each Agent and each Lender Party shall hold
all information supplied by the Borrower or any of its Subsidiaries that is
marked confidential (the “Confidential
Information”) confidential in accordance with its customary
practices for handling confidential information, provided that, in any event, disclosure may be made without

 87
 

the consent of the
Borrower, (a) to such Agent’s or such Lender Party’s Affiliates and their
officers, directors, employees, agents and advisors and to actual or
prospective Eligible Assignees and participants, and then only on a
confidential basis, (b) as required by any law, rule or regulation or judicial
process, (c) as requested or required by any state, Federal or foreign
authority or examiner regulating such Lender Party or any of its Affiliates,
(d) to any rating agency when required by it, provided that, prior to any such disclosure, such rating agency
shall undertake to preserve the confidentiality of any Confidential Information
relating to the Loan Parties received by it from such Lender Party, (e) on a
confidential basis to swap counterparties in connection with hedging
transactions entered into by a Lender Party with respect to a Loan Party or any
of obligations of a Loan Party and (f) as may be reasonably necessary in
connection with the enforcement of the rights and remedies of the Lender
Parties under the Loan Documents.

Section 8.11.          Release
of Collateral.  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 Collateral Agent will, and
the Lender Parties hereby authorize the Collateral Agent to, all 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.

Section 8.12.          Jurisdiction,
Etc.  (a)  Each of the parties hereto hereby irrevocably
and unconditionally submits, for itself and its property, to the nonexclusive
jurisdiction of 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 fullest extent permitted by law, in such Federal court.  The Borrower hereby agrees that service of
process in any such action or proceeding brought in any such New York state
court or in such federal court may be made upon CT Corporation System at its
offices at 111 Eighth Avenue, 13th Floor, New York, New York 10011 (the “Process Agent”) and
the Borrower hereby irrevocably appoints the Process Agent its authorized agent
to accept such service of process, and agrees that the failure of the Process
Agent to give any notice of any such service shall not impair or affect the
validity of such service or of any judgment rendered in any action or
proceeding based thereon.  The Borrower
hereby further irrevocably consents to the service of process in any action or
proceeding in such courts by the mailing thereof by any parties hereto by
registered or certified mail, postage prepaid, to the Borrower at its address
specified pursuant to Section 8.02. 
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.

 88
 

(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 8.13.          Governing
Law.  Each Loan Document (other than
the Letters of Credit, to the extent specified below and except as otherwise
expressly set forth in a Loan Document) will each be deemed to be a contract
made under and governed by the laws of the State of New York (including for
such purpose Sections 5-1407 and 5-1402 of the General
Obligations Law of the State of New York). 
Each Letter of Credit shall be governed by, and construed in accordance
with, the laws or rules designated in such Letter of Credit or the related
Letter of Credit Agreement, or if no laws or rules are designated, the
International Standby Practices (ISP98 — International Chamber of Commerce Publication
Number 590 (the “ISP  Rules”)) and, as to matters
not governed by the ISP Rules, the internal laws of the State of New York.  The Loan Documents constitute the entire
understanding among the parties hereto with respect to the subject matter
thereof and supersede any prior agreements, written or oral, with respect
thereto.

Section 8.14.          Reallocation
and Assignment of Existing Facility. 
The credit extensions and commitments made by the Existing Lenders and
outstanding pursuant to the Existing Credit Agreement and not refinanced in
connection with the Refinancing, shall be assigned without recourse and re-allocated
among the Lenders so that, and credit extensions and commitments shall be made
by the Lenders pursuant to this Agreement so that, from and after the Effective
Date, the respective commitments and credit extensions of the Lenders shall be
in accordance with Schedule I. 
Credit extensions made by Existing Lenders and not so assigned shall,
effective as of the Effective Date, be evidenced and governed by this Agreement
and the Loan Documents.

Section 8.15.          Effect
of this Agreement.  This Agreement
amends and restates the Existing Credit Agreement in its entirety and is
entitled to the benefit of all existing Loan Documents.  Any reference in any other Loan Document to
the “Credit Agreement,”
“thereunder,” “therein,” “thereof” or words of like import
referring to the Existing Credit Agreement shall mean and refer to this
Agreement.  Any reference in any other
Loan Document to the “Obligations” or any similar term including or referencing
obligations under the Existing Credit Agreement shall include and reference the
Obligations as defined in this Agreement. 
All Obligations under the Existing Credit Agreement and the other Loan
Documents shall continue to be outstanding except as expressly modified by this
Agreement and shall be governed in all respects by this Agreement and the other
Loan Documents, it being agreed and understood by the parties hereto that this
Agreement does not constitute a novation, satisfaction, payment or reborrowing
of any Obligation under the Existing Credit Agreement or any other Loan
Document except as expressly modified by this Agreement, nor, except as
expressly provided herein, does it operate as a waiver of any right, power or
remedy of any Lender under any Loan Document. 
The security interests granted pursuant to any Loan Documents shall, as
modified hereby, continue in full force and effect, and are hereby affirmed,
with respect to this Agreement

 89
 

and the Obligations as
defined herein.  In the event of a
conflict between the terms and provisions of this Agreement and the terms and
provisions of any other Loan Document, the terms and provisions of this
Agreement shall govern.

Section 8.16.          No
Advisory or Fiduciary Responsibility. 
In connection with all aspects of each transaction contemplated hereby
(including in connection with any amendment, waiver or other modification
hereof or of any other Loan Document), the Borrower acknowledges and agrees that: (i) (A) the arranging and other
services regarding this Agreement severally provided by the Administrative
Agents, the Joint Lead Arrangers and the Lenders are arm’s-length commercial
transactions between the Borrower and its Affiliates, on the one hand, and the
Administrative Agents, the Joint Lead Arrangers and the Lenders (severally), on
the other hand, (B) the Borrower has consulted its own legal, accounting,
regulatory and tax advisors to the extent it has deemed appropriate, and (C)
the Borrower is capable of evaluating, and understands and accepts, the terms,
risks and conditions of the transactions contemplated hereby and by the other
Loan Documents; (ii) (A) the Administrative Agents, the Joint Lead Arrangers
and the Lenders each is and has been acting solely as a principal and, except
as expressly agreed in writing by the relevant parties, has not been, is not,
and will not be acting as an advisor, agent or fiduciary for the Borrower or
any of its Affiliates, or any other Person and (B) neither the Administrative
Agents, nor the Joint Lead Arrangers nor any Lender has any obligation to the
Borrower or any of its Affiliates with respect to the transactions contemplated
hereby except those obligations expressly set forth herein and in the other
Loan Documents; and (iii) the Administrative Agents, the Joint Lead Arrangers
and the Lenders and their respective Affiliates may be engaged in a broad range
of transactions that involve interests that differ from those of the Borrower and its Affiliates, and neither the
Administrative Agents nor the Joint
Lead Arrangers nor any Lender has any obligation to disclose any of such
interests to the Borrower or its Affiliates. 
To the fullest extent permitted by law, the Borrower hereby waives and releases any claims that it may
have against any of the Administrative Agents, the Joint Lead Arrangers or any Lender with respect to any breach
or alleged breach of agency or fiduciary duty in connection with any aspect of
any transaction contemplated hereby.

Section 8.17.          Patriot
Act Notice.  Each Lender hereby
notifies each Loan Party that, pursuant to the requirements of the Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act of 2001, Pub. L. 107-56 (the “Patriot Act”), it is required to
obtain, verify and record information that identifies each Loan Party, which
information includes names and addresses and other information that will allow
it to identify each Loan Party in accordance with the Patriot Act.

Section 8.18.        Waiver
of Jury Trial.  Each of the Borrower,
the Agents 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, the Letters of Credit or the actions of any Agent or any Lender Party
in the negotiation, administration, performance or enforcement thereof.

 

 90

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

	
  

  	
  STEEL DYNAMICS, INC.

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name: Theresa E. Wagler

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
  BANC OF AMERICA SECURITIES LLC,

  
	
   

  	
  as a Joint Lead Arranger

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Timothy Munte

  
	
   

  	
   

  	
  Name: Timothy Munte

  
	
   

  	
   

  	
  Title: Principal

  
	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
  as Documentation Agent and Syndication Agent

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ David G. McCauley

  
	
   

  	
   

  	
  Name: David G. McCauley

  
	
   

  	
   

  	
  Title: Principal

  
	
   

  	
   

  	
   

  
	
   

  	
  NATIONAL CITY BANK,

  
	
   

  	
  as a Joint Lead Arranger

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ David G. McNeely

  
	
   

  	
   

  	
  Name: David G. McNeely

  
	
   

  	
   

  	
  Title: Senior Vice President

  
	
   

  	
   

  
	
   

  	
  NATIONAL CITY BANK,

  
	
   

  	
  as Administrative Agent, Syndication Agent and

  Swing Line Bank

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ David G. McNeely

  
	
   

  	
   

  	
  Name: David G. McNeely

  
	
   

  	
   

  	
  Title: Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  NATIONAL CITY BANK,

  
	
   

  	
  as Collateral Agent

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ David G. McNeely

  
	
   

  	
   

  	
  Name: David G. McNeely

  
	
   

  	
   

  	
  Title: Senior Vice President

  

 

 

	
  

  	
  WELLS FARGO BANK, NATIONAL

  ASSOCIATION,

  as Administrative Agent

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Paul A. O’Mara

  
	
   

  	
   

  	
  Name: Paul A. O’Mara

  
	
   

  	
   

  	
  Title: Senior Vice President

  
	
   

  	
   

  
	
   

  	
  GENERAL ELECTRIC CAPITAL CORPORATION,

  
	
   

  	
  as Documentation Agent and as Lender

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Matthew N. McAlpine

  
	
   

  	
   

  	
  Name: Matthew N. McAlpine

  
	
   

  	
   

  	
  Title: Its Duly Authorized Signatory

  
	
   

  	
   

  
	
   

  	
  BMO Capital Markets Financing, Inc.,

  
	
   

  	
  as Documentation Agent and as Lender

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Thad D. Rusche

  
	
   

  	
   

  	
  Name: Thad D. Rusche

  
	
   

  	
   

  	
  Title: Director

  
	
   

  	
   

  	
   

  
	
   

  	
  FIFTH THIRD BANK,

  
	
   

  	
  as Documentation Agent and as Lender

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ David O’Neal

  
	
   

  	
   

  	
  Name: David O’Neal

  
	
   

  	
   

  	
  Title: Vice President

  

 

Initial Issuing Bank

	
  

  	
  NATIONAL CITY BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
  

  	
  By

  	
  /s/ David G. McNeely

  
	
   

  	
   

  	
  Title: Senior Vice President

  

Swing Line Bank

	
  

  	
  NATIONAL CITY BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
  

  	
  By

  	
  /s/ David G. McNeely

  
	
   

  	
   

  	
  Title: Senior Vice President

  

Lender

	
  

  	
  ABN
  AMRO Bank, N.V.,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   /s/ Kris A.
  Grosshans

  	
   

  
	
   

  	
   

  	
  Name: Kris A. Grosshans

  	
   

  
	
   

  	
   

  	
  Title: Managing Director

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   /s/ Ece
  Bennett

  	
   

  
	
   

  	
   

  	
  Name: Ece Bennett

  	
   

  
	
   

  	
   

  	
  Title: Director

  	
   

  

 

Lender

	
  

  	
  THE NORTHERN TRUST COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   /s/ Jared T.
  Hall

  	
   

  
	
   

  	
   

  	
  Name: Jared T. Hall

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  	
   

  

 

Lender

	
  

  	
  WELLS FARGO BANK, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   /s/ Paul A.
  O’Mara

  	
   

  
	
   

  	
   

  	
  Name: Paul A. O’Mara

  	
   

  
	
   

  	
   

  	
  Title: Senior Vice President

  	
   

  

 

Lender

	
  

  	
  PNC BANK NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   /s/ Louis K.
  McLinden

  	
   

  
	
   

  	
   

  	
  Name: Louis K. McLinden

  	
   

  
	
   

  	
   

  	
  Title: Managing Director

  	
   

  

 

Lender

	
  

  	
  GOLDMAN
  SACHS CREDIT PARTNERS L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   /s/ Mark
  Walton

  	
   

  
	
   

  	
   

  	
  Name: Mark Walton

  	
   

  
	
   

  	
   

  	
  Title: Authorized Signatory

  	
   

  

 

Lender

	
  

  	
  J.P. MORGAN CHASE BANK, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   /s/ Linda
  Meyer

  	
   

  
	
   

  	
   

  	
  Name: Linda Meyer

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  	
   

  

 

Lender

	
  

  	
  By

  	
   /s/ Daniel
  Twenge

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Daniel Twenge

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Authorized Signatory

  	
   

  
	
   

  	
   

  	
   

  	
  Morgan Stanley Bank

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

Lender

	
  

  	
  CITIBANK, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   /s/ Peter
  Dillon

  	
   

  
	
   

  	
   

  	
  Name: Peter Dillon

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  	
   

  

 

SCHEDULE I

COMMITMENTS AND APPLICABLE LENDING OFFICES

	
  Name of
  Initial

  Lender

  	
   

  	
  Revolving

  Credit

  Commitment

  	
   

  	
  Letter of

  Credit

  Commitment

  	
   

  	
  Domestic Lending

  Office

  	
   

  	
  Eurodollar

  Lending Office

  
	
  Bank of America, N.A.

  	
   

  	
  $

  	
  90,000,000

  	
   

  	
   

  	
   

  	
  On file with the Paying Agent

  	
   

  	
  On file with the Paying Agent

  
	
  National City Bank

  	
   

  	
  $

  	
  90,000,000

  	
   

  	
  $

  	
  100,000,000

  	
   

  	
  On file with the Paying Agent

  	
   

  	
  On file with the Paying Agent

  
	
  General Electric Capital Corporation

  	
   

  	
  $

  	
  100,000,000

  	
   

  	
   

  	
   

  	
  On file with the Paying Agent

  	
   

  	
  On file with the Paying Agent

  
	
  BMO Capital Markets

  	
   

  	
  $

  	
  75,000,000

  	
   

  	
   

  	
   

  	
  On file with the Paying Agent

  	
   

  	
  On file with the Paying Agent

  
	
  Fifth Third Bank (Central Indiana)

  	
   

  	
  $

  	
  75,000,000

  	
   

  	
   

  	
   

  	
  On file with the Paying Agent

  	
   

  	
  On file with the Paying Agent

  
	
  Wells Fargo Bank, N.A.

  	
   

  	
  $

  	
  75,000,000

  	
   

  	
   

  	
   

  	
  On file with the Paying Agent

  	
   

  	
  On file with the Paying Agent

  
	
  PNC Bank, National Association

  	
   

  	
  $

  	
  45,000,000

  	
   

  	
   

  	
   

  	
  On file with the Paying Agent

  	
   

  	
  On file with the Paying Agent

  
	
  Morgan Stanley Senior Funding, Inc.

  	
   

  	
  $

  	
  45,000,000

  	
   

  	
   

  	
   

  	
  On file with the Paying Agent

  	
   

  	
  On file with the Paying Agent

  
	
  ABN Amro

  	
   

  	
  $

  	
  40,000,000

  	
   

  	
   

  	
   

  	
  On file with the Paying Agent

  	
   

  	
  On file with the Paying Agent

  
	
  Goldman Sachs Credit Partners L.P.

  	
   

  	
  $

  	
  40,000,000

  	
   

  	
   

  	
   

  	
  On file with the Paying Agent

  	
   

  	
  On file with the Paying Agent

  
	
  JPMorgan Chase Bank, N.A.

  	
   

  	
  $

  	
  30,000,000

  	
   

  	
   

  	
   

  	
  On file with the Paying Agent

  	
   

  	
  On file with the Paying Agent

  
	
  The Northern Trust Company

  	
   

  	
  $

  	
  25,000,000

  	
   

  	
   

  	
   

  	
  On file with the Paying Agent

  	
   

  	
  On file with the Paying Agent

  
	
  Citibank, N.A.

  	
   

  	
  $

  	
  20,000,000

  	
   

  	
   

  	
   

  	
  On file with the Paying Agent

  	
   

  	
  On file with the Paying Agent

  
	
  Total

  	
   

  	
  $

  	
  750,000,000

  	
   

  	
  $

  	
  100,000,000

  	
   

  	
   

  	
   

  	
   

  

 

EXHIBIT A

FORM OF

REVOLVING CREDIT NOTE

	
  $               

  	
   

  	
  Dated:                 ,       

  

 

FOR VALUE RECEIVED, the undersigned, STEEL DYNAMICS,
INC., an Indiana corporation (the “Borrower”), HEREBY UNCONDITIONALLY PROMISES
TO PAY to                                       
or its registered assigns (the “Lender”) for the account of its Applicable Lending
Office (as defined in the Credit Agreement referred to below) the aggregate
principal amount of the Revolving Credit Advances, the Letter of Credit
Advances and the Swing Line Advances (each as defined below) owing to the
Lender by the Borrower pursuant to the Amended and Restated Credit Agreement
dated as of June 19, 2007 (as amended, amended and restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”; terms defined therein,
unless otherwise defined herein, being used herein as therein defined) among
the Borrower, the Lender and certain other lender parties party thereto,
National City Bank (“National City”),
as Collateral Agent, National
City Bank and Wells Fargo Bank, National Association, as Co-Administrative
Agents for the Lender and such other lender parties, Bank of America, N.A. and
National City, as Syndication Agent and Banc of America Securities LLC and
National City, as Joint Lead Arrangers on the Termination Date.

The Borrower promises to pay to             
or its registered assigns interest on the unpaid principal amount of each
Revolving Credit Advance, Letter of Credit Advance and Swing Line Advance from
the date of such Revolving Credit Advance, Letter of Credit Advance or Swing
Line Advance, as the case may be, until such principal amount is paid in full
(as well after as before judgment), at such interest rates, and payable at such
times, as are specified in the Credit Agreement.

Both principal and interest are payable in lawful
money of the United States of America to National City Bank, in its capacity as
Paying Agent under the Credit Agreement, at 629 Euclid Avenue, Locator 01-3028,
Cleveland, Ohio 44114, in same day funds without set-off or counterclaim.  The Lender is hereby authorized to record
each Revolving Credit Advance, Letter of Credit Advance and Swing Line Advance
owing to the Lender by the Borrower and the maturity thereof, and all payments
made on account of principal thereof, on the grid attached hereto, which is
part of this Promissory Note; provided,
however, that the failure of the Lender to make any such recordation or
endorsement shall not affect the Obligations of the Borrower under this
Promissory Note.

This Promissory Note is one of the Notes referred to
in, and is entitled to the benefits of, the Credit Agreement.  The Credit Agreement, among other things,
(i) provides for the making of advances (variously, the “Revolving Credit Advances”,
the “Letter of Credit
Advances” or the “Swing Line Advances”) by the Lender to or for
the benefit of the Borrower from time to time in an aggregate amount not to
exceed at any time outstanding the U.S. dollar amount first above mentioned,
the indebtedness of the Borrower resulting from each such Revolving Credit
Advance, Letter of Credit Advance and Swing Line Advance being evidenced by
this Promissory Note, and (ii) contains provisions for acceleration of the
maturity hereof upon

the happening of certain stated events and also for
prepayments on account of principal hereof prior to the maturity hereof upon
the terms and conditions therein specified. 
The obligations of the Borrower under this Promissory Note and the other
Loan Documents, and the obligations of the other Loan Parties under the Loan
Documents, are secured by the Collateral and guaranteed by the Guaranties as
provided in the Loan Documents.

This Promissory Note shall be governed by, and
construed in accordance with, the laws of the State of New York.

	
  

  	
   

  	
  STEEL DYNAMICS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

 2

ADVANCES AND PAYMENTS OF PRINCIPAL

	
  Date

  	
   

  	
  Amount of Advance

  	
   

  	
  Interest Period

  (If Applicable)

  	
   

  	
  Amount of Principal

  Paid 

  or Prepaid

  	
   

  	
  Unpaid Principal

  Balance

  	
   

  	
  Notation 

  Made By

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

EXHIBIT B

FORM OF

NOTICE OF BORROWING

CONFIRM THAT SAME NOTICE

Daily Activity Notice

	
  Date:

  	
  [                       ]

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  To:

  	
  Agent Services

  	
   

  	
  Candace Marsky

  	
  216-222-2888 phone

  
	
   

  	
   

  	
   

  	
  Candace.Marsky@nationalcity.com

  	
  216-222-0012 fax

  
	
   

  	
   

  	
   

  	
  Sonya.Townsell@nationalcity.com

  	
   

  
	
   

  	
   

  	
   

  	
  Sheri.Hoff@nationalcity.com

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  From:

  	
  Steel Dynamics, Inc.

  	
  Contact

  	
  phone

  
	
   

  	
   

  	
   

  	
  email

  	
  fax

  

 

Please check appropriate box:

	
  o  REVOLVER
  BASE RATE

  	
  Notice Deadline: 12:00 Noon (Same
  Day)

  

 

	
  Beginning Balance:

  	
   

  	
  $

  	
  —

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ADVANCE

  	
   

  	
  $

  	
  —

  	
   

  	
  Credit DDA #

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PAYDOWN

  	
   

  	
  $

  	
  —

  	
   

  	
  Debit DDA #

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ending
  Balance:

  	
   

  	
  $

  	
  —

  	
   

  	
   

  	
   

  

 

	
  o  REVOLVER
  LIBOR RATE

  	
  Notice Deadline: 12:00 Noon (3 Days
  Prior)

  

 

	
  Effective Date:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  New Funds Borrowing:

  	
   

  	
  $

  	
  —

  	
   

  	
  Credit DDA #

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Convert
  From Prime:

  	
   

  	
  $

  	
  —

  	
   

  	
   

  	
   

  

 

	
  Duration of Contract:

  	
   

  	
     o
  1 Month

  	
  o
  2 Months   o
  3 Months   o
  6 Months

  
	
   

  	
   

  	
  Confirmation of Rate Setting wil be faxed

  

 

	
  o  SWING
  LINE MONEY MARKET RATE

  	
  Notice Deadline: 2:00 PM (Same Day)

  

 

	
  Beginning Balance:

  	
   

  	
  $

  	
  —

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ADVANCE

  	
   

  	
  $

  	
  —

  	
   

  	
  Credit DDA #

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PAYDOWN

  	
   

  	
  $

  	
  —

  	
   

  	
  Debit DDA #

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ending Balance:

  	
   

  	
  $

  	
  —

  	
   

  	
   

  	
   

  

 

EXHIBIT C

FORM OF

ASSIGNMENT AND ASSUMPTION

This Assignment and Assumption (the “Assignment and
Assumption”) is dated as of the Effective Date set forth below and is
entered into by and between [Insert name of Assignor]
(the “Assignor”) and [Insert name of Assignee]
(the “Assignee”).  Capitalized
terms used but not defined herein shall have the meanings given to them in the
Credit Agreement identified below  (as
amended, the “Credit Agreement”), receipt of a copy of which is hereby
acknowledged by the Assignee.  The
Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby
agreed to and incorporated herein by reference and made a part of this
Assignment and Assumption as if set forth herein in full.

For an agreed consideration, the Assignor hereby
irrevocably sells and assigns to the Assignee, and the Assignee hereby
irrevocably purchases and assumes from the Assignor, subject to and in
accordance with the Standard Terms and Conditions and the Credit Agreement, as
of the Effective Date inserted by the Paying Agent as contemplated below (i)
all of the Assignor’s rights and obligations in its capacity as a Lender under
the Credit Agreement and any other documents or instruments delivered pursuant
thereto to the extent related to the amount and percentage interest identified
below of all of such outstanding rights and obligations of the Assignor under
the respective facilities identified below (including without limitation any
letters of credit, guarantees, and swingline loans included in such facilities)
and (ii) to the extent permitted to be assigned under applicable law, all
claims, suits, causes of action and any other right of the Assignor (in its
capacity as a Lender) against any Person, whether known or unknown, arising
under or in connection with the Credit Agreement, any other documents or
instruments delivered pursuant thereto or the loan transactions governed
thereby or in any way based on or related to any of the foregoing, including,
but not limited to, contract claims, tort claims, malpractice claims, statutory
claims and all other claims at law or in equity related to the rights and
obligations sold and assigned pursuant to clause (i) above (the rights and
obligations sold and assigned pursuant to clauses (i) and (ii) above being referred
to herein collectively as, the “Assigned Interest”).  Such sale and assignment is without recourse
to the Assignor and, except as expressly provided in this Assignment and
Assumption, without representation or warranty by the Assignor.

	
  1.

  	
  Assignor:

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Assignee:

  	
   

  
	
   

  	
   

  	
  [and is an Affiliate/Approved Fund of [identify Lender](1)]

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Borrower(s):

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Administrative Agents:

  	
                                              ,
  as the Administrative Agents under the Credit Agreement

  

 

(1) Select as applicable.

 

	
  5.

  	
  Credit Agreement:

  	
  [The [amount]
  Credit Agreement dated as of                
  among [name of Borrower(s)], the Lenders
  parties thereto, [name of Administrative
  Agents], as Administrative Agents, and the other agents parties
  thereto]

  

 

 2
 

6.              Assigned Interest:

	
  Facility Assigned(2)

  	
   

  	
  Aggregate Amount of

  Commitment/Loans for

  all Lenders*

  	
   

  	
  Amount of

  Commitment/Loans

  Assigned*

  	
   

  	
  Percentage Assigned of

  Commitment/Loans(3)

  	
   

  
	
    

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  %

  	
   

  
	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  %

  	
   

  
	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  %

  	
   

  

 

[7.            Trade
Date:                                                           ](4)

Effective Date:  
                          
       , 20      
[TO BE INSERTED BY ADMINISTRATIVE AGENTS AND WHICH SHALL BE THE EFFECTIVE DATE
OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

The terms set forth in this Assignment and Assumption
are hereby agreed to:

	
  

  	
  ASSIGNOR

  
	
   

  	
  [NAME OF ASSIGNOR]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
     Title:

  
	
   

  	
   

  
	
   

  	
  ASSIGNEE

  
	
   

  	
  [NAME OF ASSIGNEE]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
     Title:

  

 

(2)          Fill in the appropriate
terminology for the types of facilities under the Credit Agreement that are
being assigned under this Assignment (e.g. “Revolving
Credit Commitment,” “Term Loan Commitment,”
etc.)

*                   Amount to be
adjusted by the counterparties to take into account any payments or prepayments
made between the Trade Date and the Effective Date.

(3)          Set forth, to at least
10 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.

(4)          To
be completed if the Assignor and the Assignee intend that the minimum assignment
amount is to be determined as of the Trade Date.

 3
 

 

	
  [Consented to and](5) Accepted:

  
	
   

  
	
  [NAME OF ADMINISTRATIVE AGENTS],

  as Administrative Agents

  
	
   

  
	
  By

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  
	
  [Consented to:](6)

  
	
   

  
	
  [NAME OF RELEVANT PARTY]

  
	
   

  
	
  By

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  

 

(5)          To be added only if the
consent of the Administrative Agents is required by the terms of the Credit
Agreement.

(6)          To be added only if the
consent of the Borrower and/or other parties (e.g. Swingline Lender, L/C
Issuer) is required by the terms of the Credit Agreement.

 4
 

Effective Date (if other
than date of acceptance by Administrative Agents):

(7)
                      
     ,        

	
  

  	
  Assignors

  
	
   

  	
   

  
	
   

  	
                                                     ,
  as Assignor

  
	
   

  	
  [Type or print
  legal name of Assignor]

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Dated:                    
       ,         

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
                                                     ,
  as Assignor

  
	
   

  	
  [Type or print
  legal name of Assignor]

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Dated:                    
       ,         

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
                                                     ,
  as Assignor

  
	
   

  	
  [Type or print
  legal name of Assignor]

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Dated:                    
       ,         

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
                                                     ,
  as Assignor

  
	
   

  	
  [Type or print
  legal name of Assignor]

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

(7)                                  This
date should be no earlier than five Business Days after the delivery of this
Assignment and Assumption to the Administrative Agents.

 5
 

 

	
  

  	
  Dated:                    
       ,         

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
                                                     ,
  as Assignor

  
	
   

  	
  [Type or print
  legal name of Assignor]

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Dated:                    
       ,         

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  

  	
  Assignees

  
	
   

  	
   

  
	
   

  	
                                                     ,
  as Assignee

  
	
   

  	
  [Type or print
  legal name of Assignee]

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Dated:                    
       ,         

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Domestic Lending Office:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Eurodollar Lending Office:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
                                                     ,
  as Assignee

  
	
   

  	
  [Type or print
  legal name of Assignee]

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Dated:                    
       ,         

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Domestic Lending Office:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Eurodollar Lending Office:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
                                                     ,
  as Assignee

  
	
   

  	
  [Type or print
  legal name of Assignee]

  

 

 6
 

 

	
  

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Dated:                    
       ,         

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Domestic Lending Office:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Eurodollar Lending Office:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
                                                     ,
  as Assignee

  
	
   

  	
  [Type or print
  legal name of Assignee]

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Dated:                    
       ,         

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Domestic Lending Office:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Eurodollar Lending Office:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
                                                     ,
  as Assignee

  
	
   

  	
  [Type or print
  legal name of Assignee]

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Dated:                    
       ,         

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Domestic Lending Office:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Eurodollar Lending Office:

  	
   

  

 

Accepted (8)[and Approved] this           

day of                        ,
         

[                                                                    ],

(8)                                  Required
if the Assignee is an Eligible Assignee except by reason of clause (b) of
the definition of “Eligible Assignee”.

 7
 

 

	
  as Administrative Agents

  
	
   

  
	
  By 

  	
   

  	
   

  
	
      Name

  
	
      Title:

  
	
   

  
	
  (9) [Approved this        
  day

  
	
   

  
	
  of                           ,
         

  
	
  STEEL DYNAMICS, INC.

  
	
   

  
	
  By 

  	
   

  	
   

  
	
      Name

  
	
      Title:]

  

 

(9)                                  See
footnote 2 and also only required so long as no Default or Event of Default has
occurred and is continuing.

 8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]