Document:

EXHIBIT
10.1

 

 

AMENDED AND RESTATED CREDIT AGREEMENT

 

dated as of

August 2, 2004

 

Among

 

THE GENLYTE GROUP INCORPORATED, GENLYTE THOMAS GROUP LLC,

GENLYTE HOLDINGS INC., GENLYTE LIGHTING CORPORATION,

GENLYTE CLP NOVA SCOTIA ULC and GENLYTE CGP NOVA SCOTIA ULC

 

as the Borrowers

 

and

 

THE LENDING INSTITUTIONS NAMED THEREIN

as the Lenders

 

NATIONAL CITY BANK OF KENTUCKY

as a Lender, a Letter of Credit Issuer,

the Swing Line Lender, a Co-Lead Arranger and

the Domestic Administrative Agent

 

BANK ONE, NA, CANADA BRANCH

as a Lender, a Letter of Credit Issuer and the

Canadian Administrative Agent

 

BANK ONE, N.A.

as a Lender and a Letter of Credit Issuer

 

BANK OF AMERICA, N.A.

as a Lender, a Letter of Credit Issuer and a
Co-Documentation Agent

 

J.P. MORGAN SECURITIES INC.

as a Co-Lead Arranger

 

and

SUNTRUST BANK

as a Lender and a Co-Documentation Agent

 

 

 

 

TABLE OF CONTENTS

 

	
  SECTION 1.
  DEFINITIONS AND TERMS

  	
   

  
	
  1.1.
  Certain Defined Terms

  	
   

  
	
  1.2. COMPUTATION OF TIME
  PERIODS

  	
   

  
	
  1.3.
  ACCOUNTING TERMS

  	
   

  
	
  1.4. TERMS
  GENERALLY

  	
   

  
	
  1.5. ADDITIONAL
  BORROWERS.

  	
   

  
	
  1.6.
  APPOINTMENT OF GENLYTE GROUP AS REPRESENTATIVE.

  	
   

  
	
  1.7. QUALIFIED
  RECEIVABLES TRANSACTION.

  	
   

  
	
  1.8.
  CURRENCY EQUIVALENTS; CANADIAN FACILITY AMOUNTS.

  	
   

  
	
  SECTION 2. AMOUNT
  AND TERMS OF LOANS

  	
   

  
	
  2.1. EXISTING LETTERS OF
  CREDIT; COMMITMENTS FOR LOANS

  	
   

  
	
  2.2. MINIMUM BORROWING
  AMOUNTS, ETC.; PRO RATA BORROWINGS

  	
   

  
	
  2.3.
  PROCEDURES FOR BORROWING

  	
   

  
	
  2.4.
  DISBURSEMENT OF FUNDS

  	
   

  
	
  2.5. REFUNDING OF, OR
  PARTICIPATION IN, SWING LINE REVOLVING LOANS

  	
   

  
	
  2.6.
  NOTES AND LOAN ACCOUNTS

  	
   

  
	
  2.7. CONVERSIONS
  OF DOMESTIC REVOLVING LOANS; CANADIAN REVOLVING LOANS AND DOMESTIC TERM LOANS

  	
   

  
	
  2.8. INTEREST

  	
   

  
	
  2.9.
  SELECTION AND CONTINUATION OF INTEREST PERIODS

  	
   

  
	
  2.10. INCREASED
  COSTS, ILLEGALITY, ETC.

  	
   

  
	
  2.11.
  BREAKAGE COMPENSATION

  	
   

  
	
  2.12. SAME
  INDEBTEDNESS; OTHER REFERENCES

  	
   

  
	
  SECTION
  3. DOMESTIC FACILITY LETTERS OF CREDIT

  	
   

  
	
  3.1.
  DOMESTIC FACILITY LETTERS OF CREDIT

  	
   

  
	
  3.2.
  DOMESTIC FACILITY LETTER OF CREDIT REQUESTS: NOTICES OF ISSUANCE

  	
   

  
	
  3.3. AGREEMENT TO
  REPAY DOMESTIC FACILITY LETTER OF CREDIT DRAWINGS

  	
   

  
	
  3.4. DOMESTIC
  FACILITY LETTER OF CREDIT PARTICIPATIONS

  	
   

  

 

i

 

	
  3.5. INCREASED COSTS

  	
   

  
	
  SECTION
  4. CANADIAN FACILITY LETTERS OF CREDIT

  	
   

  
	
  4.1. CANADIAN
  FACILITY LETTERS OF CREDIT

  	
   

  
	
  4.2. CANADIAN
  FACILITY LETTER OF CREDIT REQUESTS: NOTICES OF ISSUANCE

  	
   

  
	
  4.3. AGREEMENT TO REPAY
  CANADIAN FACILITY LETTER OF CREDIT DRAWINGS

  	
   

  
	
  4.4.
  CANADIAN FACILITY LETTER OF CREDIT PARTICIPATIONS

  	
   

  
	
  4.5. INCREASED COSTS

  	
   

  
	
  SECTION 5. FEES

  	
   

  
	
  5.1. FACILITY FEE

  	
   

  
	
  5.2. CLOSING, LETTER OF CREDIT
  AND OTHER FEES

  	
   

  
	
  5.3.
  COMPUTATIONS OF FEES

  	
   

  
	
  SECTION
  6. REDUCTIONS AND TERMINATION OF COMMITMENTS

  	
   

  
	
  6.1.
  VOLUNTARY TERMINATION/REDUCTION OF COMMITMENTS

  	
   

  
	
  6.2.
  MANDATORY TERMINATION/ADJUSTMENTS OF COMMITMENTS, ETC.

  	
   

  
	
  SECTION
  7. PAYMENTS

  	
   

  
	
  7.1.
  VOLUNTARY PREPAYMENTS

  	
   

  
	
  7.2.
  MANDATORY PREPAYMENTS

  	
   

  
	
  7.3. METHOD AND PLACE OF
  PAYMENT

  	
   

  
	
  7.4. NET PAYMENTS

  	
   

  
	
  SECTION 8. CONDITIONS
  PRECEDENT

  	
   

  
	
  8.1. CONDITIONS
  PRECEDENT AT CLOSING DATE

  	
   

  
	
  8.2. CONDITIONS
  PRECEDENT TO ALL LOANS

  	
   

  
	
  SECTION 9.
  REPRESENTATIONS AND WARRANTIES

  	
   

  
	
  9.1. CORPORATE
  STATUS, ETC.

  	
   

  
	
  9.2. SUBSIDIARIES

  	
   

  
	
  9.3. CORPORATE
  POWER AND AUTHORITY, ETC.

  	
   

  
	
  9.4. NO VIOLATION

  	
   

  
	
  9.5.
  GOVERNMENTAL APPROVALS

  	
   

  
	
  9.6. LITIGATION

  	
   

  
	
  9.7. USE OF
  PROCEEDS; MARGIN REGULATIONS

  	
   

  
	
  9.8.
  FINANCIAL STATEMENTS, ETC.

  	
   

  

 

ii

 

	
  9.9. NO MATERIAL ADVERSE
  CHANGE

  	
   

  
	
  9.10.
  TAX RETURNS AND PAYMENTS

  	
   

  
	
  9.11.
  TITLE TO PROPERTIES, ETC.

  	
   

  
	
  9.12. LAWFUL
  OPERATIONS, ETC.

  	
   

  
	
  9.13.
  ENVIRONMENTAL MATTERS

  	
   

  
	
  9.14.
  COMPLIANCE WITH ERISA AND CANADIAN BENEFIT PLANS

  	
   

  
	
  9.15.
  INTELLECTUAL PROPERTY, ETC.

  	
   

  
	
  9.16.
  INVESTMENT COMPANY

  	
   

  
	
  9.17.
  BURDENSOME CONTRACTS; LABOR RELATIONS

  	
   

  
	
  9.18.
  EXISTING INDEBTEDNESS

  	
   

  
	
  9.19. TRUE AND COMPLETE
  DISCLOSURE

  	
   

  
	
  9.20. SOLVENCY

  	
   

  
	
   9.21. MATERIAL AGREEMENTS

  	
   

  
	
   9.22 INSURANCE

  	
   

  
	
  9.23.
  SECURITY INTERESTS

  	
   

  
	
   9.24 THOMAS PURCHASE.

  	
   

  
	
  SECTION 10.
  AFFIRMATIVE COVENANTS

  	
   

  
	
  10.1.
  REPORTING REQUIREMENTS

  	
   

  
	
  10.2. BOOKS, RECORDS AND
  INSPECTIONS

  	
   

  
	
  10.3. INSURANCE

  	
   

  
	
  10.4. PAYMENT OF TAXES
  AND CLAIMS

  	
   

  
	
  10.5.
  CORPORATE FRANCHISES

  	
   

  
	
  10.6. GOOD REPAIR

  	
   

  
	
  10.7.
  COMPLIANCE WITH STATUTES, ETC.

  	
   

  
	
  10.8. COMPLIANCE WITH
  ENVIRONMENTAL LAWS

  	
   

  
	
  10.9. FISCAL YEARS,
  FISCAL QUARTERS

  	
   

  
	
  10.10. HEDGE
  AGREEMENTS, ETC.

  	
   

  
	
  10.11. SENIOR DEBT

  	
   

  
	
  10.12.
  SECURITY DOCUMENTS

  	
   

  
	
  10.13. USE OF PROCEEDS

  	
   

  
	
  SECTION 11. NEGATIVE
  COVENANTS

  	
   

  
	
  11.1. CHANGES IN BUSINESS

  	
   

  
	
  11.2.
  CONSOLIDATION, MERGER, ACQUISITIONS, ASSET SALES, ETC.

  	
   

  

 

iii

 

	
  11.3. LIENS

  	
   

  
	
  11.4. INDEBTEDNESS

  	
   

  
	
  11.5. ADVANCES, INVESTMENTS,
  LOANS AND GUARANTY OBLIGATIONS

  	
   

  
	
  11.6.
  RESTRICTED PAYMENTS

  	
   

  
	
  11.7
  RATIO OF CONSOLIDATED TOTAL DEBT TO CONSOLIDATED EBITDA

  	
   

  
	
  11.8. CONSOLIDATED
  INTEREST COVERAGE RATIO

  	
   

  
	
  11.9. TRANSACTIONS WITH
  AFFILIATES

  	
   

  
	
  11.10. PLAN
  TERMINATIONS, MINIMUM FUNDING, ETC.

  	
   

  
	
  11.11. CERTAIN
  LEASES

  	
   

  
	
  11.12.
  LIMITATION ON CERTAIN RESTRICTIVE AGREEMENTS, ETC.

  	
   

  
	
  11.13. ACCOUNTING
  CHANGES

  	
   

  
	
  SECTION 12. EVENTS OF
  DEFAULT

  	
   

  
	
  12.1. EVENTS
  OF DEFAULT

  	
   

  
	
  12.2. ACCELERATION,
  ETC.

  	
   

  
	
  12.3. APPLICATION OF
  LIQUIDATION PROCEEDS

  	
   

  
	
  SECTION 13. THE
  ADMINISTRATIVE AGENTS

  	
   

  
	
  13.1. APPOINTMENT

  	
   

  
	
  13.2. DELEGATION OF
  DUTIES

  	
   

  
	
  13.3.
  EXCULPATORY PROVISIONS

  	
   

  
	
  13.4. RELIANCE BY
  ADMINISTRATIVE AGENTS

  	
   

  
	
  13.5. NOTICE
  OF DEFAULT

  	
   

  
	
  13.6. NON-RELIANCE

  	
   

  
	
  13.7.
  INDEMNIFICATION

  	
   

  
	
  13.8. THE
  ADMINISTRATIVE AGENTS IN INDIVIDUAL CAPACITY

  	
   

  
	
  13.9. SUCCESSOR
  ADMINISTRATIVE AGENT

  	
   

  
	
  13.10. OTHER AGENTS

  	
   

  
	
  SECTION
  14.  GUARANTY BY GENLYTE GROUP

  	
   

  
	
  14.1. GUARANTY OF
  SUBSIDIARY BORROWINGS

  	
   

  
	
  14.2.
  ADDITIONAL UNDERTAKING

  	
   

  
	
  14.3.
  GUARANTY UNCONDITIONAL, ETC.

  	
   

  
	
  14.4. GENLYTE
  GROUP OBLIGATIONS TO REMAIN IN EFFECT; RESTORATION

  	
   

  
	
  14.5.
  WAIVER OF ACCEPTANCE, ETC.

  	
   

  
	
  14.6. SUBROGATION

  	
   

  

 

iv

 

	
  14.7. EFFECT OF
  STAY

  	
   

  
	
  SECTION 15. MISCELLANEOUS

  	
   

  
	
  15.1.
  PAYMENT OF EXPENSES ETC.

  	
   

  
	
  15.2. RIGHT OF
  SETOFF

  	
   

  
	
  15.3. NOTICES

  	
   

  
	
  15.4.
  BENEFIT OF AGREEMENT

  	
   

  
	
  15.5. NO WAIVER: REMEDIES
  CUMULATIVE

  	
   

  
	
  15.6.
  PAYMENTS PRO RATA

  	
   

  
	
  15.7. CALCULATIONS:
  COMPUTATIONS

  	
   

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

  	
   

  
	
  15.9. COUNTERPARTS

  	
   

  
	
  15.10.
  EFFECTIVENESS; INTEGRATION

  	
   

  
	
  15.11. HEADINGS DESCRIPTIVE

  	
   

  
	
  15.12. AMENDMENT
  OR WAIVER

  	
   

  
	
  15.13. SURVIVAL

  	
   

  
	
  15.14.
  DOMICILE OF LOANS

  	
   

  
	
  15.15.
  JUDGMENT CURRENCY

  	
   

  
	
  15.16. LENDER
  REGISTER

  	
   

  
	
  15.17. GENERAL LIMITATION
  OF LIABILITY

  	
   

  
	
  15.18. NO DUTY

  	
   

  
	
  15.19.
  LENDERS AND AGENTS NOT FIDUCIARY TO BORROWERS, ETC.

  	
   

  
	
  15.20.
  SURVIVAL OF REPRESENTATIONS AND WARRANTIES

  	
   

  
	
  15.21. INDEPENDENCE OF
  COVENANTS

  	
   

  
	
  15.22.
  OBLIGATIONS OF BORROWERS

  	
   

  
	
  15.23.
  SEPARATE OBLIGATIONS OF FOREIGN BORROWERS AND CANADIAN FACILITY GUARANTORS

  	
   

  

 

v

 

	
  ANNEX I

  	
  -

  	
  INFORMATION
  AS TO LENDERS

  	
   

  
	
  ANNEX II

  	
  -

  	
  INFORMATION
  AS TO SUBSIDIARIES

  	
   

  
	
  ANNEX III

  	
  -

  	
  DESCRIPTION
  OF EXISTING INDEBTEDNESS

  	
   

  
	
  ANNEX IV

  	
  -

  	
  DESCRIPTION
  OF EXISTING LIENS

  	
   

  
	
  ANNEX V

  	
  -

  	
  DESCRIPTION
  OF EXISTING ADVANCES, LOANS, INVESTMENTS AND GUARANTEES

  	
   

  
	
  ANNEX VI

  	
  -

  	
  TRANSACTION
  WITH AFFILIATES

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT A-1

  	
  -

  	
  FORM OF
  DOMESTIC REVOLVING NOTE

  	
   

  
	
  EXHIBIT A-2

  	
  -

  	
  FORM
  OF SWING LINE REVOLVING NOTE

  	
   

  
	
  EXHIBIT A-3

  	
  -

  	
  FORM
  OF CANADIAN REVOLVING NOTE

  	
   

  
	
  EXHIBIT A-4

  	
   

  	
  FORM
  OF DOMESTIC TERM LOAN NOTE

  	
   

  
	
  EXHIBIT B-1

  	
  -

  	
  FORM
  OF NOTICE OF BORROWING

  	
   

  
	
  EXHIBIT B-2

  	
  -

  	
  FORM
  OF NOTICE OF CONVERSION

  	
   

  
	
  EXHIBIT B-3

  	
  -

  	
  DOMESTIC
  FACILITY LETTER OF CREDIT REQUEST

  	
   

  
	
  EXHIBIT B-4

  	
  -

  	
  CANADIAN
  FACILITY LETTER OF CREDIT REQUEST

  	
   

  
	
  EXHIBIT C

  	
  -

  	
  FORM
  OF CORPORATE CERTIFICATES

  	
   

  
	
  EXHIBIT D

  	
  -

  	
  OPINIONS
  OF COUNSEL TO THE BORROWER

  	
   

  
	
  EXHIBIT E

  	
  -

  	
  FORM
  OF ASSIGNMENT AND ASSUMPTION AGREEMENT

  	
   

  
	
  EXHIBIT F

  	
  -

  	
  FORM
  OF STOCK PLEDGE AGREEMENT

  	
   

  
	
  EXHIBIT G-1

  	
  -

  	
  FORM
  OF GUARANTY AGREEMENT FOR CANADIAN FACILITY GUARANTORS

  	
   

  
	
  EXHIBIT G-2

  	
  -

  	
  FORM
  OF GUARANTY AGREEMENT FOR DOMESTIC FACILITY GUARANTORS

  	
   

  
	
  EXHIBIT G-3

  	
  -

  	
  GENLYTE
  THOMAS, GENLYTE GROUP GUARANTY AGREEMENT

  	
   

  
	
  EXHIBIT H

  	
  -

  	
  FORM
  OF ADDITIONAL BORROWER JOINDER

  	
   

  

 

vi

 

AMENDED AND RESTATED CREDIT AGREEMENT,
dated as of August 2, 2004 (herein, as amended, supplemented or otherwise
modified from time to time, “this Agreement”), among the following:

 

(i)            THE GENLYTE GROUP INCORPORATED,
a Delaware corporation (“Genlyte Group”); GENLYTE THOMAS GROUP LLC, a Delaware
limited liability company (“Genlyte Thomas”); GENLYTE HOLDINGS INC., a Delaware corporation
(“Genlyte Holdings”); GENLYTE
LIGHTING CORPORATION, a Delaware corporation (“Genlyte Lighting”); GENLYTE CLP NOVA SCOTIA ULC,
a Nova Scotia unlimited liability company (“Genlyte Limited Nova Scotia”; and GENLYTE CGP
NOVA SCOTIA ULC, a Nova Scotia unlimited liability company (“Genlyte General Nova Scotia”)
(Genlyte Group, Genlyte Thomas, Genlyte Holdings, Genlyte Lighting, Genlyte
Limited Nova Scotia and Genlyte General Nova Scotia are herein each a “Borrower” and,
collectively, together with each of their respective successors and assigns,
the “Borrowers”);

 

(ii)           the lending
institutions listed in Annex I hereto (herein, together with its or
their successors and assigns, each a “Lender” and collectively, the “Lenders”);

 

(iii)          NATIONAL CITY BANK OF KENTUCKY,
a national banking association, as one of the Lenders, as the Lender under the
Swing Line Revolving Facility referred to herein (herein, together with its
successors and assigns, the “Swing Line Lender”), as a Letter of Credit Issuer
(herein, together with its successors and assigns, a “Letter of Credit Issuer”), as a Co-Lead
Arranger (a “Co-Lead Arranger”),
and as the administrative agent for the Domestic Revolving Facility and the
Domestic Term Loan Facility referred to herein (the “Domestic Administrative Agent” or an “Administrative Agent”);

 

(iv)          BANK ONE, NA, CANADA
BRANCH a national banking association, as one of the Lenders, as a
Letter of Credit Issuer (herein, together with its successors and assigns, a “Letter of Credit Issuer”)
and as the administrative agent for the Canadian Revolving Facility referred to
herein (the “Canadian
Administrative Agent” or an “Administrative Agent” and collectively with
the Domestic Administrative Agent, the “Administrative Agents”);

 

(v)           BANK ONE, NA, a national
banking association, as one of the Lenders, as a Letter of Credit Issuer
(herein, together with its successors and assigns, a “Letter of Credit Issuer”);

 

(vi)          BANK OF AMERICA, N.A., a
national banking association, as one of the Lenders, as a Letter of Credit
Issuer (herein, together with its successors and assigns, a “Letter of Credit Issuer”)
and as a co-documentation agent (a “Co-Documentation Agent”);

 

1

 

(vii)         J.P. MORGAN SECURITIES  INC.,
a Delaware corporation, as one of the co-lead arrangers (a “Co-Lead Arranger” and
together with National City Bank of Kentucky, the “Co-Lead Arrangers”); and

 

(viii)        SUNTRUST BANK, a Georgia
corporation, as a Lender and as a co-documentation agent (a “Co-Documentation Agent”,
and together with Bank of America, N.A., the “Co-Documentation Agents”).

 

PRELIMINARY STATEMENTS:

 

A.            Genlyte Thomas and
Genlyte Thomas Group Nova Scotia ULC, a Nova Scotia unlimited liability company
(“GTG Nova Scotia” and,
collectively with Genlyte Thomas, the “Existing Agreement Borrowers”) are the borrowers under
that certain Credit Agreement dated as of July 29, 2003 (the “Existing Credit Agreement”),
as in effect immediately prior to the Closing Date (as defined herein), under
which:

 

(i)            National City Bank of
Kentucky and Bank One, NA, Canada Branch are the administrative agents (the “Existing Agreement Agents”);

 

(ii)           National City Bank of
Kentucky and Banc One Capital Markets, Inc. are the co-lead arrangers;

 

(iii)          National City Bank of
Kentucky, Bank One, NA, Canada Branch, Bank One, NA, and Bank of America, N.A.
are letter of credit issuers (the “Existing Agreement Issuers”);

 

(iv)          PNC Bank, National
Association and Suntrust Bank are the co-documentation agents; and

 

(v)           various financial
institutions, including those identified in clauses (i) through (iv), above,
are the lender parties (the “Existing Agreement Lenders”).

 

B.            Pursuant and subject
to the Existing Credit Agreement, the Existing Agreement Lenders agreed to
advance to the Borrowers revolving credit loans (collectively, the “Existing Revolving Loans”),
and the Existing Agreement Issuers agreed to issue letters of credit
(collectively, the “Existing Letters of
Credit”) in an aggregate principal amount not to exceed
$130,000,000 under a domestic revolving credit facility and in an aggregate
principal amount not to exceed CDN$27,000,000 under a Canadian revolving credit
facility.

 

C.            On the close of
business July 30, 2004, there were no Existing Revolving Loans outstanding
under either of said revolving credit facilities;  and the aggregate undrawn face amount of the Existing Letters of
Credit was $19,270,254 under said domestic revolving credit facility and CDN
$-0- under said Canadian revolving credit facility.

 

D.            The Existing Agreement
Borrowers and the Borrowers have requested the Existing Agreement Agents, the
Existing Agreement Issuers, the Existing Agreement Lenders, the Administrative
Agents and the Lenders to enter into this Agreement to amend and restate in
their entirety the terms and conditions of the Existing Credit Agreement, inter alia,
to (i) extend the

 

2

 

maturity of both of said revolving credit facilities of the Existing
Credit Agreement and increase the aggregate amount of credit available under
said domestic revolving credit facility, (ii) advance to certain of the
Borrowers a term loan hereunder, (iii) permit Genlyte Group, Genlyte Holdings,
Genlyte Lighting, Genlyte Limited Nova Scotia and Genlyte General Nova Scotia
to join in said amendment and restatement as additional “Borrowers” hereunder
and (iv) permit GTG Nova Scotia to cease being a “Borrower”.

 

E.             Subject to the
satisfaction of the terms and conditions set forth in this Agreement, the
Existing Agreement Agents, the Existing Agreement Issuers, the Existing
Agreement Lenders, the Administrative Agents and the Lenders have agreed to
such requests.

 

F.             Certain of the
proceeds of the “Loans” advanced hereunder will be used by Genlyte Holdings and
Genlyte Lighting to acquire from Thomas Industries Inc. and certain of its
Subsidiaries (collectively, the “Thomas Sellers”) all of the direct and
indirect equity interests (collectively, the “Thomas Interests”) of the Thomas
Sellers in Genlyte Thomas and GTG Intangible Holdings, LLP, a Delaware limited
liability company (together with its successors and assigns, “GTG Intangible”).

 

G.            Unless
otherwise defined herein, all capitalized terms used herein and defined in section
1 are used herein as so defined.

 

NOW, THEREFORE, it is agreed:

 

SECTION
1.         DEFINITIONS AND TERMS.

 

1.1.         Certain
Defined Terms. 
As used herein, the following terms shall have the meanings herein
specified unless the context otherwise requires:

 

“1934 Act” shall mean the Securities Exchange Act of 1934,
as amended.

 

“Acquisition” shall mean and include (i) any acquisition
on a going concern basis (whether by purchase, lease or otherwise) of any
facility and/or business operated by any person who is not a Subsidiary of a
Borrower, and (ii) acquisitions of a majority of the outstanding equity or
other similar interests in any such person (whether by merger, stock purchase
or otherwise).

 

“Additional Borrower Joinder” shall mean an Additional
Borrower Joinder in the Form of Exhibit H to this Agreement pursuant to
which the signatory thereto becomes a Borrower hereunder pursuant to section
1.5.

 

“Administrative Agent(s)”, “Domestic Administrative Agent” and “Canadian Administrative Agent”
shall have the meaning provided in the first paragraph of this Agreement and
shall include any successor to either Administrative Agent appointed pursuant
to section 13.9.

 

“Affiliate” shall mean, with respect to any person, any
other person directly or indirectly controlling, controlled by, or under direct
or indirect common control with such person. A person shall be deemed to
control a second person if such first person possesses, directly or indirectly,
the power (i) to vote 10% or more of the securities having ordinary voting
power for the election of directors or managers of such second person or (ii)
to direct or cause the direction of the

 

3

 

management and policies of such second person, whether through the
ownership of voting securities, by contract or otherwise. Notwithstanding the
foregoing, (x) a director, officer or employee of a person shall not, solely by
reason of such status or the exercise of authority pursuant to such status, be
considered an Affiliate of such person; and (y) none of the Administrative Agents,
the Co-Lead Arrangers, the Co-Documentation Agents or any Lender shall in any
event be considered an Affiliate of any Borrower or any Subsidiary.

 

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

 

“Applicable Eurodollar Margin” shall have the meaning
provided in section 2.8(j).

 

“Applicable Facility Fee Rate” shall have the meaning
provided in section 5.1(b).

 

“Applicable Lending Office” shall mean, with respect to
each Lender, (i) such Lender’s Domestic Lending Office in the case of
Borrowings under the Domestic Revolving Facility or the Domestic Term Loan
Facility consisting of Domestic Prime Rate Loans, (ii) such Lender’s Eurodollar
Lending Office in the case of Borrowings under the Domestic Revolving Facility,
the Domestic Term Loan Facility or the Canadian Revolving Facility consisting
of Eurodollar Loans, (iii) the Domestic Lending Office of the Swing Line Lender
in the case of Borrowings of Swing Line Revolving Loans from the Swing Line
Lender, and (iv) such Lender’s Canadian Lending Office in the case of
Borrowings consisting of Canadian Revolving Loans that are not Eurodollar
Loans; provided that a Canadian Facility Lender that makes a Canadian Revolving
Loan denominated in Dollars may, in addition, by notice to the Canadian
Administrative Agent designate a branch, affiliate or correspondent office as
its Applicable Lending Office with respect to Canadian Revolving Loans
denominated in Dollars.

 

“Asset Sale” shall mean the sale, transfer or other
disposition (including by means of Sale and Lease-Back Transactions, and by
means of mergers, consolidations, and liquidations of a corporation,
partnership or limited liability company of the interests therein of a
Borrower, or any of its Subsidiaries) by a Borrower or any of its Subsidiaries
to any person of any of their respective assets, other than (i) the sale of
inventory in the ordinary course of business of such Credit Party and (ii) the
sale of Receivables Facility Assets pursuant to a Qualified Receivables Transaction.

 

“Assignment and Assumption Agreement” shall mean an
Assignment and Assumption Agreement substantially in the form of Exhibit E
hereto.

 

“Authorized Officer” shall mean any officer or employee
of the Borrowers designated as such in writing to the Administrative Agents by
the Borrowers.

 

“Bank One” shall mean Bank One, N.A., a national banking
association, together with its successors and assigns.

 

“Bank One Canada” shall mean Bank One, NA, Canada Branch,
a national banking association, together with its successors and assigns.

 

“Bankruptcy Code” shall have the meaning provided in section
12.1(g).

 

4

 

“Basis Point” shall mean one one-hundredth of one percent
(0.01%).

 

“Borrower” shall mean any of the Domestic Facility
Borrowers and the Canadian Facility Borrowers, as applicable, and “Borrowers” shall
mean, collectively, the Domestic Facility Borrowers and the Canadian Facility
Borrowers.

 

“Borrowing” shall mean (i) the incurrence of Domestic
Revolving Loans consisting of one Type of Loan, by a Borrower from all of the
Domestic Revolving Facility Lenders on a pro rata basis on a given date (or resulting from
Conversions or Continuations on a given date), having in the case of Eurodollar
Loans the same Interest Period, (ii) the incurrence of a Swing Line Revolving
Loan by a Borrower from the Swing Line Lender, (iii) the incurrence of Canadian
Revolving Loans consisting of one Type of Loan, by a Borrower from all of the
Canadian Facility Lenders on a pro rata basis on a given date (or resulting from
Conversions or Continuations on a given date), having in the case of CDOR Loans
the same Interest Period, or (iv) the incurrence of Domestic Term Loans
consisting of one Type of Loan, by a Borrower from all of the Domestic Term
Loan Lenders on a pro rata
basis on a given date (or resulting from Conversions or Continuations of a
given date), having in the case of Eurodollar Loans the same Interest Period.

 

“Business Day” shall mean (i) for all purposes other than
as covered by clause (ii) or (iii) below, any day excluding Saturday, Sunday
and any day which shall be in the city in which the Payment Office is located a
legal holiday or a day on which banking institutions are authorized by law or
other governmental actions to close, (ii) with respect to all notices and
determinations in connection with, and payments of principal and interest on,
Eurodollar Loans or Flex Eurodollar Loans, any day which is a Business Day
described in clause (i) and which is also a day for trading by and between
banks in U.S. dollar deposits in the interbank Eurodollar market and (iii) with
respect to all notices and determinations in connection with, and payments of
principal and interest on, Canadian Revolving Loans, any day which is a Business
Day described in clause (i) and which is also a day for trading by and between
banks in Canadian Dollar deposits in Canada and, further, with respect to all notices and
determinations in connection with, and payments of principal and interest on,
Canadian Revolving Loans that are Eurodollar Loans, which is also a day for
trading by and between banks in U.S. dollar deposits in the interbank
Eurodollar market.

 

“Canadian Deposit Offered Rate”
shall mean on any day the annual rate of interest which is the rate determined
as being the arithmetic average of the quotations of all institutions listed in
respect of the “BA 1 Month” Rate for Canadian Dollar denominated bankers’
acceptances displayed and identified as such on the “Reuters Screen CDOR Page”
as defined in the International Swap Dealer Association, Inc. definitions, as
modified and amended from time to time) as of 10:00 am Toronto, Ontario local
time on such day and, if such day is not a Business Day, then on the
immediately preceding Business Day (as adjusted by the Canadian Administrative
Agent after 10:00 am Toronto, Ontario local time to reflect any error in the
posted rate of interest or in the posted average annual rate of interest); and
if such rates are not available on the Reuters Screen CDOR Page on any
particular day, then the Canadian Dollar Offered Rate on that day shall be
calculated as the cost of funds quoted by the Canadian Administrative Agent to
raise Canadian Dollars for the applicable Interest Period as of 10:00 A.M.
Toronto, Ontario local time on such day for commercial loans or other
extensions of credit to businesses of comparable credit risk; or if such day is
not a

 

5

 

Business Day, then as quoted by the Canadian Administrative Agent on
the immediately preceding Business Day.

 

“Canadian Dollar” and the sign “CDN$” each shall mean lawful money of Canada.

 

“Canadian Facility Borrower” shall mean each of Genlyte
Limited Nova Scotia and Genlyte General Nova Scotia, together with their respective
successors and assigns.

 

“Canadian Facility Guarantors”
shall mean any Material Subsidiary that in accordance with section 10.12(a)
executes and delivers to the Canadian Administrative Agent a Guaranty Agreement
in substantially the form attached as Exhibit G-1 for the benefit of
each of the Administrative Agents and each of the Canadian Facility Lenders.

 

“Canadian Facility Lender” shall mean a Lender having a
Canadian Revolving Commitment.

 

“Canadian Facility Letter of Credit” shall have the meaning
provided in section 4.1.

 

“Canadian Facility Letter of Credit Obligor” shall have
the meaning provided in section 4.1.

 

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

 

“Canadian Facility Letter of Credit Request” shall have
the meaning provided in section 4.2.

 

“Canadian Facility Participant” shall have the meaning
provided in section 4.4(a).

 

“Canadian Lending Office” shall mean, with respect to any
Canadian Facility Lender, the office of such Lender specified as its Canadian
Lending Office in Annex I or in the Assignment and Assumption Agreement
pursuant to which it became a Canadian Facility Lender, or such other office or
offices for Canadian Revolving Loans of such Lender as such Lender may from
time to time specify to the Borrowers and the Canadian Administrative Agent.

 

“Canadian Prime Rate”
shall mean, for any period, a fluctuating interest rate per annum as shall be
in effect from time to time which rate per annum shall at all times be equal to
the percentage rate per annum determined by the Canadian Administrative Agent
(rounded up to two decimal places) to be the greater of (i) the rate of
interest which the Canadian Administrative Agent establishes at that time as
the reference rate of interest for determination of interest rates it will
charge for loans in Canadian Dollars in Canada and which it refers to as its
prime rate (or its equivalent or analogous such rate) or (ii) the sum of (A)
the yearly rate of interest to which the one month Canadian Deposit Offered
Rate is equivalent plus (B) one percent (1.0%).

 

“Canadian Prime Rate Loan”
shall mean each Loan bearing interest at the rates provided in section
2.8(c).

 

6

 

“Canadian Revolving Commitment” shall mean, with respect
to each Canadian Facility Lender, the amount set forth opposite such Canadian
Facility Lender’s name in Annex I as its “Canadian Revolving Commitment”
as the same may be reduced from time to time pursuant to any one or more of sections
6.1, 6.2 and 12.2 or adjusted from time to time as a result
of assignments to or from such Canadian Facility Lender pursuant to section
15.4.

 

“Canadian Revolving Commitment Acceptance” shall have the
meaning provided in section 2.1(f).

 

“Canadian Revolving Facility” shall mean the credit
facility evidenced by the Total Canadian Revolving Commitment.

 

“Canadian Revolving Facility Percentage” shall mean at
any time for any Canadian Facility Lender, the percentage obtained by dividing
such Canadian Facility Lender’s Canadian Revolving Commitment by the Total
Canadian Revolving Commitment, provided, that if the Total Canadian Revolving
Commitment has been terminated, the Canadian Revolving Facility Percentage for
each Canadian Facility Lender shall be determined by dividing such Lender’s
Canadian Revolving Commitment immediately prior to such termination by the
Total Canadian Revolving Commitment immediately prior to such termination.

 

“Canadian Revolving Loan(s)” shall have the meaning
provided in section 2.1(c).

 

“Canadian Revolving Note” shall have the meaning provided
in section 2.6(a).

 

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

 

“Capitalized Lease Obligations” shall mean all
obligations under Capital Leases of any Credit Party, in each case taken at the
amount thereof accounted for as liabilities identified as “capital lease
obligations” (or any similar words) on a balance sheet of such Credit Party as
prepared in accordance with GAAP.

 

“Cash Equivalents” shall mean any of the following:

 

(i)            securities issued or
directly and fully guaranteed or insured by the United States of America or any
agency or instrumentality thereof (provided that the full faith and credit of the United
States of America is pledged in support thereof) having maturities of not more
than one year from the date of acquisition;

 

(ii)           U.S. dollar denominated
time deposits, certificates of deposit and bankers’ acceptances of (x) any
Lender or (y) any bank whose short-term commercial paper rating from S&P is
at least A-1 or the equivalent thereof or from Moody’s is at least P-1 or the
equivalent thereof (any such bank, an “Approved Bank”), in each case with maturities of not
more than 365 days from the date of acquisition;

 

7

 

(iii)          commercial paper issued
by any Lender or Approved Bank or by the parent company of any Lender or
Approved Bank maturing within 365 days of the date of acquisition, commercial
paper issued by, or guaranteed by, any industrial or financial company, having
a short-term commercial paper rating of at least A-1 or the equivalent thereof
by S&P or at least P-1 or the equivalent thereof by Moody’s, or guaranteed
by any industrial company with a long term unsecured debt rating of at least A
or A2, or the equivalent of each thereof, from S&P or Moody’s, as the case
may be, and in each case maturing within 365 days after the date of
acquisition;

 

(iv)          investments in money
market funds or mutual funds substantially all the assets of which are
comprised of securities of the types described in clauses (i) through (iii)
above and (v) below; and

 

(v)           obligations issued or
guaranteed by any state or political subdivision thereof and rated at least A-1
or the equivalent thereof by S&P or at least P-1 or the equivalent thereof
by Moody’s (if rated as short-term obligations) or with a long term unsecured
debt rating of at least A or A2, or the equivalent of each thereof, from
S&P or Moody’s, as the case may (if rated as long-term obligations).

 

“Cash Proceeds” shall mean, with respect to any Asset
Sale, the aggregate cash payments (including any cash received by way of
deferred payment pursuant to a note receivable issued in connection with such
Asset Sale, other than the portion of such deferred payment constituting
interest, but only as and when so received) received by the Borrowers and/or
any Subsidiary from such Asset Sale.

 

“CDOR Loans” shall mean each Loan bearing interest at the
rates provided in section 2.8(d).

 

“CDOR Rate” shall mean, for a CDOR Loan, the rate per
annum that is equal to the cost of raising Canadian Dollars for the applicable
Interest Period as determined by the Canadian Administrative Agent; provided
that such cost of funds shall not exceed the Canadian Deposit Offered Rate, plus 10 Basis Points.

 

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

 

“Change of Control”
means the occurrence of any of the following:

 

(a)           any “person” (as such
term is used in Sections 13(d) and 14(d) of the Exchange Act) who is or becomes
the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange
Act, except that for the purposes of this clause (a) such person shall be
deemed to have “beneficial ownership” of all shares that any such person has
the right to acquire, whether such right is exercisable immediately or only
after the passage of time), directly or indirectly, of more than 25% of either
the aggregate ordinary voting power or the aggregate equity value represented
by the issued and outstanding capital stock in Genlyte Group;

 

8

 

(b)           individuals who
constituted the Board of Directors of Genlyte Group at any given time (together
with any new directors whose election by such Board of Directors or whose
nomination for election by the shareholders of Genlyte Group as approved by a
vote of 66-2/3% of the directors of Genlyte Group then still in office who were
either directors at such time or whose election or nomination for election was
previously so approved) cease for any reason to constitute a majority of the
Board of Directors then in office;

 

(c)           the adoption of a plan
relating to the liquidation or dissolution of Genlyte Group; or

 

(d)           the merger or
consolidation of Genlyte Group with or into another Person or the merger of
another Person with or into Genlyte Group, or the sale of all or substantially
all the assets of Genlyte Group (determined on a consolidated basis) to another
Person, other than a merger or consolidation transaction in which holders of
capital stock representing 100% of the ordinary voting power represented by
capital stock in Genlyte Group immediately prior to such transaction (or other
securities into which such securities are converted as part of such merger or
consolidation transaction) own directly or indirectly at least 80% of the
ordinary voting power represented by, as the case may be, shares of capital
stock, membership interests, partnership interests or equivalent equity
interests in the surviving Person in such merger or consolidation transaction
issued and outstanding immediately after such transaction and in substantially
the same proportion as before the transaction.

 

“Class”, when used in reference to any Loan or Borrowing,
refers to whether such Loan, or the Loans comprising such Borrowing, are
Canadian Revolving Loans, Domestic Revolving Loans or Domestic Term Loans.

 

“Closing Date” shall mean the date, on or after the
Effective Date, upon which the conditions specified in section 8.1 are
satisfied.

 

“Co-Documentation Agent” shall have
the meaning provided in the preamble to this Agreement.

 

“Co-Lead Arrangers” shall have the meaning provided in
the preamble to this Agreement.

 

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

 

“Collateral” shall mean any collateral covered by any
Security Document.

 

“Commitment” shall mean with respect to each Lender its
Domestic Revolving Commitment, if any, its Swing Line Revolving Commitment, if
any, its Canadian Revolving Commitment, if any, or its Domestic Term Loan
Commitment, as the case may be.

 

9

 

“Commodity Hedge Agreement” shall mean any commodity swap
agreement, forward commodity purchase agreement, forward commodity option
agreement or similar agreement or arrangement.

 

“Consolidated Amortization Expense” shall mean, for any
period, the amortization expenses of Genlyte Group and its Subsidiaries,
calculated on a consolidated basis and determined in accordance with GAAP.

 

“Consolidated Capital Expenditures” shall mean, for any
period, the sum of all expenditures for property, plant or equipment (whether
paid in cash or accrued as liabilities and including in all events amounts
expended or capitalized under Capital Leases and Synthetic Leases but excluding
any amount representing capitalized interest) by Genlyte Group and its
Subsidiaries on a consolidated basis during that period.

 

“Consolidated Depreciation Expense” shall mean, for any
period, the consolidated depreciation expenses of Genlyte Group and its
Subsidiaries, calculated on a consolidated basis and determined in accordance
with GAAP.

 

“Consolidated EBIT” shall mean, for any period,
Consolidated Net Income for such period; plus (A) the sum (without duplication) of the amounts
for such period included in determining such Consolidated Net Income of (i)
Consolidated Interest Expense, (ii) Consolidated Income Tax Expense, (iii)
extraordinary and other non-recurring non-cash losses and charges, and (iv) a
non-cash inventory charge under purchase accounting in connection with the
acquisition of the Thomas Interests by Subsidiaries of Genlyte Group; minus (B)
extraordinary gains on sales of assets and other extraordinary or other
non-recurring gains, of Genlyte Group and its Subsidiaries, calculated on a
consolidated basis, and determined in accordance with GAAP.

 

“Consolidated EBITDA” shall mean, for any period,
Consolidated EBIT for such period; plus the sum (without duplication) of the amounts for
such period included in determining Consolidated Net Income of Consolidated
Depreciation Expense, and Consolidated Amortization Expense of Genlyte Group
and its Subsidiaries, calculated on a consolidated basis and determined in
accordance with GAAP.

 

“Consolidated Income Tax Expense” shall mean, for any
period, all provisions for taxes based on the net income of Genlyte Group and
its Subsidiaries (including, without limitation, any additions to such taxes,
and any penalties and interest with respect thereto), calculated on a
consolidated basis and determined in accordance with GAAP.

 

“Consolidated Interest Coverage Ratio” shall mean, for
any Testing Period the ratio of (i) Consolidated EBIT for such Testing Period,
to (ii) Consolidated Interest Expense for such Testing Period as determined at
the end of any fiscal quarter; provided, however, that in computing Consolidated EBIT
and Consolidated Interest Expense for each of the Testing Periods ending on or
prior to June 30, 2005, Consolidated EBIT and Consolidated Interest Expense
shall be determined as if Genlyte Group had owned, directly or indirectly, 100%
of, as the case may be, the partnership

 

10

 

interests or the membership interests in Genlyte Thomas and GTG
Intangible during all of such Testing Period.

 

“Consolidated Interest Expense” shall mean, for any
period, the total interest expense (including that which is capitalized, that
which is attributable to Capital Leases (but not to Synthetic Leases) and the
pre-tax equivalent of dividends payable on Redeemable Stock that has a
liquidation preference over common stock, and that which is “Yield”, as defined
in the Qualified Receivables Purchase Agreement) of Genlyte Group and its
Subsidiaries, calculated on a consolidated basis and determined in accordance
with GAAP, with respect to all outstanding Indebtedness of the Genlyte Group
and its Subsidiaries, including, without limitation, all commissions, discounts
and other fees and charges owed with respect to letters of credit and net
obligations under Financial Hedge Agreements, but excluding, however, any interest expense
in respect of any amortization or write-off of deferred financing costs and any
charges for prepayment penalties on prepayment of Indebtedness.

 

“Consolidated Net Income” shall mean for any period, the
net income (or loss) of Genlyte Group and its Subsidiaries for such period
taken as a single accounting period, calculated on a consolidated basis and
determined in accordance with GAAP.

 

“Consolidated Net Worth” shall mean, as of any date, the
difference between the assets and liabilities as referred on Genlyte Group’s
consolidated balance sheet, determined in accordance with GAAP.

 

“Consolidated Total Debt” shall mean, at any time, the
total of (i) the principal amount (or Capitalized Lease Obligation, in the case
of a Capital Lease, or present value, based on the implicit interest rate, in
the case of any Synthetic Lease, or the higher of liquidation value or stated
value, in the case of Redeemable Stock) of all Indebtedness of Genlyte Group
and its Subsidiaries, without duplication, determined on a consolidated basis,
including, without limitation, the “Aggregate Capital” (as defined in the
Qualified Receivables Purchase Agreement) at such time.

 

“Continue”, “Continuation” and “Continued” each refers to a continuation of a (i)
Domestic Revolving Loan which is a Eurodollar Loan for an additional Interest
Period as provided in section 2.9 or (ii) Canadian Revolving Loan which
is a CDOR Loan for an additional Interest Period as provided in section 2.9.

 

“Convert”, “Conversion” and “Converted” each refers to a conversion of (i) Loans of
one Class and of one Type into Loans of such Class of another Type, pursuant to
section 2.7, 2.9(b), 2.10 or 7.2.

 

“Credit Documents” shall mean this Agreement, any
Security Documents and the Notes and any Letter of Credit Documents.

 

“Credit Party” shall mean each of the Borrowers, the
Guarantors and any other Subsidiary that is a party to any of the Credit
Documents.  Without limiting the
generality of the preceding sentence, the Receivables Facility Subsidiary shall
not be deemed to be a Credit Party.

 

11

 

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

 

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

 

“Dollars”, “U.S. dollars”, “dollars” and the sign “$” each means lawful money of the United
States.

 

“Domestic Facility Borrower” shall mean Genlyte Group,
Genlyte Thomas, Genlyte Holdings, and Genlyte Lighting and its successors and
assigns, together with such Wholly-Owned Subsidiaries of Genlyte Group as may
from time to time execute an Additional Borrower Joinder which is accepted by
the Administrative Agents and the Required Lenders pursuant to section 1.5
of this Agreement and otherwise satisfies the terms and conditions of this
Agreement.

 

“Domestic Facility Guarantors” shall mean Genlyte
Intangible Inc., Shakespeare Composite Structures LLC, GTG Intangible and
Genlyte Canadian Holdings, LLC, and their respective successors and assigns,
and any other Material Subsidiary, and its respective successors and assigns,
that in accordance with section 10.12(a) executes and delivers to the
Administrative Agents a Guaranty Agreement in substantially the form attached
as Exhibit G-2 for the benefit of each of the Administrative Agents and
each of the Lenders.

 

“Domestic Facility Letter of Credit” shall have the
meaning provided in section 3.1.

 

“Domestic Facility Letter of Credit Exposure” means, at
any time, the aggregate undrawn amount of all Domestic Facility Letter of
Credit Outstandings at such time.  The
Domestic Facility Letter of Credit Exposure of any Domestic Revolving Facility
Lender at any time will be its Domestic Revolving Facility Percentage of the
total Domestic Facility Letter of Credit Exposure at such time.

 

“Domestic Facility Letter of Credit Obligor” shall have
the meaning provided in section 3.1.

 

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

 

“Domestic Facility Letter of Credit Request” shall have
the meaning provided in section 3.2.

 

“Domestic Facility Participant” shall have the meaning
provided in section 3.4(a).

 

“Domestic Lending Office” shall mean, with respect to any
Domestic Revolving Facility Lender or Domestic Term Loan Lender, the office of
such Lender specified as its Domestic Lending Office in Annex I or in
the Assignment and Assumption Agreement pursuant to which it became a Lender,
or such other office of such Lender as such Lender may from time to time
specify to the Borrowers and the Domestic Administrative Agent.

 

12

 

“Domestic Prime Rate” shall mean, for any period, (a)
except in the case of Canadian Revolving Loans denominated in Dollars, a
fluctuating interest rate per annum as shall be in effect from time to time
which rate per annum shall at all times be equal to the greater of (i) the rate
of interest established by National City Bank at its principal office in
Cleveland, Ohio, from time to time, as its prime rate, whether or not publicly
announced, which interest rate may or may not be the lowest rate charged by it
for commercial loans or other extensions of credit; and (ii) the Federal Funds
Effective Rate in effect from time to time plus 1/2 of 1% per annum, and (b) in the case of
Canadian Revolving Loans denominated in Dollars, a fluctuating interest rate
per annum as shall be in effect from time to time which rate per annum shall at
all times be equal to the greater of (i) the rate of interest established by
Bank One at its principal office in Chicago, Illinois, from time to time, as its
prime rate, whether or not publicly announced, which interest rate may or may
not be the lowest rate charged by it for commercial loans or other extensions
of credit; and (ii) the Federal Funds Effective Rate in effect from time to
time plus 1/2 of 1% per annum.

 

“Domestic Prime Rate Loan” shall mean each Loan bearing
interest at the rate provided in section 2.8(a).

 

“Domestic Revolving Commitment” shall mean, with respect
to each Domestic Revolving Facility Lender, the amount set forth opposite such
Lender’s name in Annex I as its “Domestic Revolving Commitment” as the
same may be reduced from time to time pursuant to any one or more of sections
6.1, 6.2 and 12.2 or adjusted from time to time as a result
of assignments to or from such Lender pursuant to section 15.4.

 

“Domestic Revolving Commitment Acceptance” shall have the
meaning provided in section 2.1(e).

 

“Domestic Revolving Facility” shall mean the credit
facility evidenced by the Total Domestic Revolving Commitment.

 

“Domestic Revolving Facility Lender” shall mean a Lender
having a Domestic Revolving Commitment.

 

“Domestic Revolving Facility Percentage” shall mean at
any time for any Domestic Revolving Facility Lender, the percentage obtained by
dividing such Lender’s Domestic Revolving Commitment by the Total Domestic
Revolving Commitment, provided, that if the Total Domestic Revolving
Commitment has been terminated, the Domestic Revolving Facility Percentage for
each Domestic Revolving Facility Lender shall be determined by dividing such
Lender’s Domestic Revolving Commitment immediately prior to such termination by
the Total Domestic Revolving Commitment immediately prior to such termination.

 

“Domestic Revolving Loan” shall have the meaning provided
in section 2.1(a).

 

“Domestic Revolving Note” shall have the meaning provided
in section 2.6(a).

 

“Domestic Subsidiary” shall mean any Subsidiary organized
under the laws of the United States of America, any State thereof, the District
of Columbia, or any United States possession, the

 

13

 

chief executive office and principal place of business of which is
located in, and which conducts the majority of its business within, the United
States of America and its territories and possessions.

 

“Domestic Term Loan Commitment” shall mean, with respect
to each Domestic Term Loan Lender, the amount set forth opposite such Lender’s
name in Annex I as its “Domestic Term Loan Commitment”.

 

“Domestic Term Loan Facility” shall mean the term loan
facility evidenced by the Total Domestic Term Loan Commitment.

 

“Domestic Term Loan Lender” shall mean a Lender having a
Domestic Term Loan Commitment.

 

“Domestic Term Loan” shall have the meaning provided in section
2.1(d).

 

“Domestic Term Loan Note” shall have the meaning provided
in section 2.6(a).

 

“Effective Date” shall have the meaning provided in section
15.10.

 

“Eligible Transferee” shall mean and include a commercial
bank, financial institution or other “accredited investor” (as defined in SEC
Regulation D), in each case which is identified in a written notice from the
Domestic Administrative Agent or a requesting Lender to the Borrowers, and not
disapproved in writing by Genlyte Group in a notice given to the Domestic
Administrative Agent and any such requesting Lender, specifying the reasons for
such disapproval, within five Business Days following the receipt by the
Borrowers of such notice disclosing the identity of any proposed transferee
(any such disapproval by Genlyte Group must be reasonable), provided that Genlyte
Group shall not be entitled to exercise the foregoing right of disapproval if
and so long as any Default under section 12.1(a) or an Event of Default
shall have occurred and be continuing, unless a Borrower would incur additional costs,
withholding obligations or other reimbursement obligations under any one or
more of section 2.10, section 3.5, section 4.5 and section
7.4(a) that are not then being paid or performed in respect of the
transferring Lender and such Borrower has not otherwise exercised its right to
replace such Eligible Transferee under section 7.4(b), in which case
Genlyte Group will be entitled to exercise the foregoing right of disapproval.

 

“Employee Plans” shall have the meaning provided in section
9.14(b).

 

“Environmental Claims” shall mean any and all
administrative, regulatory or judicial actions, suits, demands, demand letters,
claims, liens, notices of non-compliance or violation, investigations or
proceedings relating in any way to any Environmental Law or any permit issued
under any such law (hereafter “Claims”), including, without limitation, (i) any and all
Claims by governmental or regulatory authorities for enforcement, cleanup,
removal, response, remedial or other actions or damages pursuant to any
applicable Environmental Law, and (ii) any and all Claims by any third party
seeking damages, contribution, indemnification, cost recovery, compensation or
injunctive relief resulting from the storage, treatment or Release (as defined
in CERCLA) of any Hazardous Materials or arising from alleged injury or threat
of injury to health, safety or the environment.

 

14

 

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

 

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

 

“ERISA Affiliate” shall mean each person (as defined in
section 3(9) of ERISA) which together with a Borrower or any or their
respective Subsidiaries would be deemed to be a “single employer” (i) within
the meaning of section 414(b), (c), (m) or (o) of the Code or (ii) as a result
of that Borrower’s or that Subsidiary’s being or having been a general partner
of such person.

 

“Eurodollar Lending Office” shall mean, with respect to
any Domestic Revolving Facility Lender and any Domestic Term Loan Lender, the
office of such Lender specified as its Eurodollar Lending Office in Annex I
or in the Assignment and Assumption Agreement pursuant to which it became a
Lender, or such other office or offices for Eurodollar Loans of such Lender as
such Lender may from time to time specify to the Borrowers and the Domestic
Administrative Agent.

 

“Eurodollar Loans” shall mean each Loan bearing interest
at the rates provided in section 2.8(b).

 

“Eurodollar Rate” shall mean with respect to each
Interest Period for a Eurodollar Loan, (i) the rate per annum which appears on
page 5 of the Telerate Screen for Eurodollar loans (or on any successor or
substitute page, or on any electronic publication of a recognized service
organization providing comparable rate quotations, in any case as determined
from time to time by, as applicable, the Domestic Administrative Agent or the
Canadian Administrative Agent) for deposits of $1,000,000 in same day funds for
a maturity corresponding to such Interest Period, as of 11:00 A.M. (as the case
may be, Cleveland, Ohio or Toronto, Ontario time) on the date which is two
Business Days prior to the commencement of such Interest Period, divided (and
rounded upward to the nearest 1/16th of 1%) by (ii) a percentage equal to 100% minus the then stated
maximum rate of all reserve requirements (including, without limitation, any
marginal, emergency, supplemental, special or other reserves and without
benefit of credits for proration, exceptions or offsets which may be available

 

15

 

from time to time) applicable to, as the case may be, any member bank
of the Federal Reserve System in respect of Eurocurrency liabilities as defined
in Regulation D (or any successor category of liabilities under Regulation D)
or any Canadian Facility Lender.

 

In the event that such rate is not available at such
time for any reason, the rate referred to in clause (i) above shall be the
interest rate per annum equal to the average (rounded upward to the nearest
1/16th of 1% per annum), of the rate per annum at which Dollar deposits of
$1,000,000 for a maturity corresponding to the Interest Period are offered to
each of the Reference Banks by prime banks in the London interbank Eurodollar
market, determined as of 11:00 A.M. (London time) on the date which is two
Business Days prior to the commencement of such Interest Period.

 

“Event of Default” shall have the meaning provided in section
12.1.

 

“Excluded Taxes” shall mean, with respect to any Lender,

 

(i)            any income or
franchise tax imposed on or measured by the net income or net profits,
receipts, capital or net worth of such Lender (a) pursuant to, in the case of a
Domestic Revolving Facility Lender or a Domestic Term Loan Lender, the laws of
the United States and, in the case of a Canadian Facility Lender, the laws of Canada
(or of any jurisdiction within, as the case may be, the United States or
Canada, except to the extent that such jurisdiction within the United States or
Canada imposes such tax solely in connection with such Lender’s enforcement of
its rights or exercise of its remedies under the Credit Documents), (b)
pursuant to the laws of the jurisdiction under which such Lender is organized,
(c) pursuant to the laws of the jurisdiction in which the principal office of
such Lender is located, or (d) pursuant to the laws of the jurisdiction in
which the Applicable Lending Office of such Lender is located,

 

(ii)           any branch profits tax
imposed pursuant to, in the case of a Domestic Revolving Facility Lender or a
Domestic Term Loan Lender, the laws of the United States and, in the case of a
Canadian Facility Lender, the laws of the Dominion of Canada or similar tax
pursuant to the laws of any other jurisdiction described in clause (i), above,
and

 

(iii)          in the case of any
Foreign Lender, any withholding tax that (a) is in effect and would apply to
amounts payable to such Foreign Lender at the time such Foreign Lender becomes
a party to this Agreement or designates a new Applicable Lending Office or (b)
is attributable to such Foreign Lender’s failure to comply with its obligations
under section 7.4(c).

 

Notwithstanding the foregoing, (A) any tax (even if imposed on or
measured by income, profits or receipts) payable pursuant to paragraph (ii) of section
7.4(a) shall not be an Excluded Tax, and (B) a withholding tax will not be
an Excluded Tax to the extent that (1) it is imposed on amounts payable to a
Foreign Lender by reason of an assignment made to such Foreign Lender at the
Borrowers’ request pursuant to section 7.4(b), (2) it is imposed on
amounts payable to a Foreign Lender by reason of any other assignment and does
not exceed that amount for which the assignor would have been indemnified under
section 7.4(a), or (3) in the case of designation of a new Applicable
Lending Office, it does not exceed the amount for which such Foreign Lender
would have been indemnified if it had not designated a new Applicable Lending
Office.

 

16

 

“Existing Agreement Agents”, “Existing Agreement Borrowers”, “Existing Agreement Issuers”,
“Existing
Agreement Lenders”, “Existing Credit Agreement”, “Existing Letters of Credit”
and “Existing Revolving Loans”
shall have the meanings provided in the Preliminary Statements.

 

“Existing Indebtedness” shall have the meaning provided
in section 9.18.

 

“Existing Indebtedness Agreements” shall have the meaning
provided in section 9.18.

 

“Facility” shall mean the Domestic Revolving Facility,
the Swing Line Revolving Facility, the Canadian Revolving Facility, or the
Domestic Term Loan Facility, as applicable.

 

“Facility Fee” shall have the meaning provided in section
5.1(a).

 

“Facing Fee” shall have the meaning provided in section
5.2(c).

 

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

 

“Fee Letter” shall have the meaning provided in section
5.2(b).

 

“Fees” shall mean all amounts payable pursuant to, or
referred to in, section 5.

 

“Financial Hedge Agreement” shall mean (i) any interest
rate swap agreement, any interest rate cap agreement, any interest rate collar
agreement or other similar agreement or arrangement; and (ii) any currency swap
agreement, forward currency purchase agreement or similar agreement or
arrangement.

 

“Financial Projections” shall have the meaning provided
in section 9.8(b).

 

“Flex Eurodollar Loan” shall mean each
Swing Line Revolving Loan bearing interest at the rates provided in section
2.8(e).

 

“Flex Eurodollar Rate” shall mean for
each day on which a Flex Eurodollar Loan is outstanding, (i) the rate per annum
determined by the Domestic Administrative Agent to appear on such date on page
5 of the Telerate Screen for Eurodollar loans (or on any successor or
substitute page, or on any electronic publication of a recognized service
organization providing comparable rate quotations, in any case as determined
from time to time by the Domestic Administrative Agent) for deposits of
$1,000,000 in same day funds, for a maturity corresponding to an Interest
Period of

 

17

 

one month, as of 11:00 A.M. (Cleveland, Ohio time), with each such Flex
Eurodollar Rate being re-determined in such manner on each Business Day on
which such Flex Eurodollar Loan is outstanding, divided (and rounded upward to
the nearest 1/16th of 1%) by (ii) a percentage equal to 100% minus the then stated
maximum rate of all reserve requirements (including, without limitation, any
marginal, emergency, supplemental, special or other reserves and without
benefit of credits for proration, exceptions or offsets which may be available
from time to time) applicable to any member bank of the Federal Reserve System
in respect of Eurocurrency liabilities as defined in Regulation D (or any
successor category of liabilities under Regulation D).

 

In the event that such rate is not available at such
time for any reason, the rate referred to in clause (i) above shall be the
interest rate per annum equal to the average (rounded upward to the nearest
1/16th of 1% per annum), of the rate per annum at which Dollar deposits of
$1,000,000 for a maturity corresponding to the one-month Interest Period are
offered to each of the Reference Banks by prime banks in the London interbank
Eurodollar market, determined as of 11:00 A.M. (London time) on each day that
such Flex Eurodollar Loan is outstanding and being re-determined on a daily
basis as provided above.

 

“Foreign Borrower” shall mean any Borrower which is a
Foreign Subsidiary.

 

“Foreign Lender” shall mean, as to Domestic Revolving
Facility Lenders and Domestic Term Loan Lenders, any Lender that is organized
under the laws of a jurisdiction outside of the United States; and, as to
Canadian Facility Lenders, any Lender that is organized under the laws of a
jurisdiction outside of Canada.

 

“Foreign Subsidiary” shall mean any Subsidiary that is
not a Domestic Subsidiary.

 

“GAAP” shall mean accounting principles generally
accepted in the United States as in effect from time to time; it being
understood and agreed that determinations in accordance with GAAP for purposes
of section 11, including defined terms as used therein, are subject (to
the extent provided therein) to sections 1.3 and 15.7(a).

 

“Genlyte Group” shall have the meaning in the first
paragraph of this Agreement.

 

“Genlyte General Nova Scotia” shall have the meaning
provided in the first paragraph of this Agreement.

 

“Genlyte Limited Nova Scotia” shall have the meaning
provided in the first paragraph of this Agreement.

 

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

 

“GTG Intangible” shall have the meaning provided in the
Preliminary Statements.

 

“Guaranteed Obligations” shall have the meaning provided
in section 14.1.

 

18

 

“Guaranties” shall mean each of the Guaranty Agreements,
of even date herewith, in favor of the applicable Administrative Agents and the
applicable Lenders from one of the Guarantors, and any other Guaranty
Agreements executed after the date hereof by another Guarantor as the same may
be amended or modified from time to time.

 

“Guarantor” shall mean any of the Domestic Facility
Guarantors and the Canadian Facility Guarantors and “Guarantors” shall mean, collectively, the
Domestic Facility Guarantors and the Canadian Facility Guarantors.  Without limiting generality of the preceding
sentence, the Receivables Facility Subsidiary shall not be a Guarantor.

 

“Guaranty Obligations” shall mean as to any person
(without duplication) any obligation of such person guaranteeing any
Indebtedness (“primary Indebtedness”)
of any other person (the “primary obligor”) in any manner, whether directly or
indirectly, including, without limitation, any obligation of such person,
whether or not contingent, (a) to purchase any such primary Indebtedness or any
property constituting direct or indirect security therefor, (b) to advance or
supply funds (i) for the purchase or payment of any such primary Indebtedness or
(ii) to maintain working capital or equity capital of the primary obligor or
otherwise to maintain the net worth or solvency of the primary obligor, (c) to
purchase property, securities or services primarily for the purpose of assuring
the owner of any such primary Indebtedness of the ability of the primary
obligor to make payment of such primary Indebtedness, or (d) otherwise to
assure or hold harmless the owner of such primary Indebtedness against loss in
respect thereof, provided, however,
that the term Guaranty Obligation shall not include endorsements of instruments
for deposit or collection in the ordinary course of business. The amount of any
Guaranty Obligation shall be deemed to be an amount equal to the stated or
determinable amount of the primary Indebtedness in respect of which such
Guaranty Obligation is made or, if not stated or determinable, the maximum
reasonably anticipated liability in respect thereof (assuming such person is
required to perform thereunder) as determined by such person in good faith.

 

“Hazardous Materials” shall mean (i) any petrochemical or
petroleum products, radioactive materials, asbestos in any form that is or
could become friable, urea formaldehyde foam insulation, transformers or other
equipment that contain dielectric fluid containing levels of polychlorinated
biphenyls, and radon gas; and (ii) any chemicals, materials or substances
defined as or included in the definition of “hazardous substances”, “hazardous
wastes”, “hazardous materials”, “restricted hazardous materials”, “extremely
hazardous wastes”, “restrictive hazardous wastes”, “toxic substances”, “toxic
pollutants”, “contaminants” or “pollutants”, or words of similar meaning and
regulatory effect, under any applicable Environmental Law.

 

“Hedge Agreement” shall mean any Commodity Hedge
Agreement and any Financial Hedge Agreement.

 

“Increased Commitment Canadian Revolving Facility Lender”
shall have the meaning provided in section 2.1(f).

 

“Increased Commitment Domestic Revolving Facility Lender”
shall have the meaning provided in section 2.1(e).

 

19

 

“Indebtedness” of any person shall mean without
duplication:

 

(i)            all indebtedness of
such person for borrowed money;

 

(ii)           all bonds, notes,
debentures and similar debt securities of such person;

 

(iii)          the deferred purchase
price of capital assets or services which in accordance with GAAP would be
shown on the liability side of the balance sheet of such person;

 

(iv)          the face amount of all
letters of credit issued for the account of such person and, without
duplication, all drafts drawn thereunder;

 

(v)           all obligations,
contingent or otherwise, of such person in respect of bankers’ acceptances;

 

(vi)          all Indebtedness of a
second person secured by any Lien on any property owned by such first person,
whether or not such Indebtedness has been assumed;

 

(vii)         all Capitalized Lease
Obligations of such person;

 

(viii)        the present value,
determined on the basis of the implicit interest rate, of all basic rental
obligations under all Synthetic Leases of such person;

 

(ix)           all net obligations of
such person under Hedge Agreements;

 

(x)            the full outstanding
balance of trade receivables, notes or other instruments sold with full
recourse for amounts that are uncollectible on account of the insolvency,
bankruptcy or lack of creditworthiness of the applicable obligor thereof (and
the portion thereof subject to potential recourse for such amounts, if sold
with limited recourse), other than in any such case any thereof sold solely for
purposes of collection of delinquent accounts;

 

(xi)           the stated value, or
liquidation value if higher, of all Redeemable Stock of such person; and

 

(xii)          all Guaranty Obligations
of such person of any indebtedness or other obligation of the type described in
clauses (i) through (xi) above;

 

provided that (a)
neither trade payables nor other similar accrued expenses, in each case arising
in the ordinary course of business, nor obligations in respect of insurance
policies or performance or surety bonds which themselves are not guarantees of
Indebtedness (nor drafts, acceptances or similar instruments evidencing the
same nor obligations in respect of letters of credit supporting the payment of
the same) that are no more than forty-five days delinquent, shall constitute
Indebtedness; and (b) the Indebtedness of any person shall in any event include
(without duplication) the Indebtedness of any other entity (including any
general partnership in which such person is a general partner) to the extent
such person is liable thereon as a result of such person’s ownership interest
in

 

20

 

or other relationship with such entity, except to the extent the terms
of such Indebtedness provide expressly that such person is not liable thereon.

 

“Interest Period” with respect to any Eurodollar Loan and
any CDOR Loan shall mean the interest period applicable thereto, as determined
pursuant to section 2.9; provided, however, that for purposes of determining the
fluctuating rate of interest applicable to Flex Eurodollar Loans, “Interest
Period” shall mean one month.

 

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

 

“Lender” shall have the meaning provided in the first
paragraph of this Agreement, and shall include any Domestic Revolving Facility
Lender, any Canadian Facility Lender and any Domestic Term Loan Lender.

 

“Lender Default” shall mean (i) the refusal (which has
not been retracted) of a Lender in violation of its obligations under this
Agreement to make available its portion of any incurrence of Loans, to fund its
portion of any Swing Line Participation Amount under section 2.5(b), or
to fulfill is obligations as a Participant with respect to Letters of Credit
under section 3.4 or Section 4.4 
(ii) a Lender having notified the Administrative Agents and/or the
Borrowers that it does not intend to comply with such obligations, in the case
of either (i) or (ii) as a result of the appointment of a receiver or
conservator with respect to such Lender at the direction or request of any
regulatory agency or authority.

 

“Lender Register” shall have the meaning provided in section
15.16.

 

“Letter of Credit” shall mean a Domestic Facility Letter
of Credit or a Canadian Facility Letter of Credit, as applicable, and “Letters of
Credit” shall mean, collectively, the Domestic Facility
Letters of Credit and Canadian Facility Letters of Credit and shall include
without limitation the Existing Letters of Credit.

 

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

 

“Letter of Credit Fee” shall have the meaning provided in
section 5.2(b).

 

“Letter of Credit Issuer” shall have the meaning provided
in the first paragraph of this Agreement, together with such other Lender that
is requested, and agrees, to so act by the Borrowers, and is approved by the
Administrative Agents.

 

“Lien” shall mean any mortgage, pledge, security
interest, encumbrance, lien, lease or charge of any kind (including any
agreement or consignment arrangement to give any of the foregoing, any
conditional sale or other title retention agreement or any lease in the nature
thereof).

 

“Loan” shall have the meaning provided in section 2.1
and shall include any Domestic Revolving Loan, Swing Line Revolving Loan,
Canadian Revolving Loan, or Domestic Term Loan, as the case may be.

 

21

 

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

 

“Material Adverse Effect” shall mean any or all of the
following:  (i) any material adverse
effect on the business, operations, property, prospects, assets, liabilities or
condition (financial or otherwise) of, when used with reference to the Borrowers,
or any of their respective Subsidiaries, the Borrowers and such Subsidiaries,
taken as a whole, or when used with reference to any other person, such person
and its Subsidiaries, taken as a whole, as the case may be; (ii) any material
adverse effect on the ability of each of the Credit Parties to perform its
obligations under the Credit Documents to which it is a party; (iii) any
material adverse effect on the ability of the Borrowers, the Guarantors and
their respective Subsidiaries, taken as a whole, to pay their liabilities and
obligations as they mature or become due; or (iv) any material adverse effect
on the validity, effectiveness or enforceability, as against any Credit Party,
of any of the Credit Documents to which it is a party.

 

“Material Subsidiary” shall mean, at any time, any
Subsidiary of Genlyte Group (i) that has assets at such time comprising three
percent (3%) or more of the consolidated assets of Genlyte Group, or (ii) whose
operations in the current fiscal year are expected to, or whose operations in
the most recent fiscal year did (or would have if such person had been a
Subsidiary for such entire fiscal year), represent three percent (3%) or more
of the consolidated earnings before interest, taxes, depreciation and
amortization of Genlyte Group for such fiscal year; provided, however, that notwithstanding the
foregoing , the term “Material Subsidiary” shall (a) include, without
limitation, Genlyte Thomas, Genlyte Holdings, Genlyte Lighting, Genlyte Limited
Nova Scotia, Genlyte General Nova Scotia, Genlyte Canadian Holdings, LLC,
Genlyte Intangible Inc., Shakespeare Composite Structures LLC, GTG Intangible,
Genlyte International Acquisitions LP, Canlyte Inc., Ledalite Architectural
Products LP, Lumec Holding Corp., Lumec Inc. and any other Subsidiary which
becomes a Borrower hereunder and (b) not include the Receivables Facility
Subsidiary.

 

“Maturity Date” shall mean July 31, 2009, or such earlier
date on which the Total Commitment is terminated.

 

“Minimum Borrowing Amount” shall mean (i) for Domestic
Revolving Loans which are (A) Domestic Prime Rate Loans, $500,000, with minimum
increments thereafter of $100,000, or (B) Eurodollar Loans, $2,000,000, with
minimum increments thereafter of $1,000,000; (ii) for Swing Line Revolving Loans,
$500,000, with minimum increments thereafter of $100,000; (iii) for Canadian
Revolving Loans which are (A) Canadian Prime Rate Loans, CDN$500,000, with
minimum increments thereafter of CDN$100,000, (B) CDOR Loans, CDN$2,000,000,
with minimum increments thereafter of CDN$500,000, (C) Domestic Prime Rate
Loans, $500,000, with minimum increments thereafter of $100,000, or (D)
Eurodollar Loans, $2,000,000, with minimum increments thereafter of $1,000,000;
and (iv) for Domestic Term Loans which are (A) Domestic Prime Rate Loans,
$500,000, with minimum increments thereafter of $100,000 (or at any time such
lesser amount that is the difference between the aggregate principal balance of
the Domestic Term Loans at such time and the aggregate principal balance of all
Eurodollar Loans that constitute a portion of the Domestic Term Loans at such
time), or (B) Eurodollar Loans, $2,000,000, with minimum increments thereafter
of $1,000,000.

 

“Moody’s” shall mean Moody’s Investors Service, Inc. and
its successors.

 

22

 

“Multiemployer Plan” shall mean a multiemployer plan, as
defined in section 4001(a)(3) of ERISA to which a Borrower 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” shall mean an employee benefit
plan, other than a Multiemployer Plan, to which a Borrower or any ERISA
Affiliate, and one or more employers other than the Borrowers or an ERISA
Affiliate, is making or accruing an obligation to make contributions or, in the
event that any such plan has been terminated, to which a Borrower or an ERISA
Affiliate made or accrued an obligation to make contributions during any of the
five plan years preceding the date of termination of such plan.

 

“NCB” shall mean National City Bank of Kentucky, a
national banking association, together with its successors and assigns.

 

“Net Cash Proceeds” shall mean, with respect to any Asset
Sale, the Cash Proceeds resulting therefrom net of (i) commissions, cost
valuations and other reasonable and customary expenses of sale incurred in
connection with such Asset Sale, and other reasonable and customary fees and
expenses incurred, and all state, and local taxes paid or reasonably estimated
to be payable by such person, as a consequence of such Asset Sale and the
payment of principal, premium and interest of Indebtedness secured by the asset
which is the subject of the Asset Sale and required to be, and which is, repaid
under the terms thereof as a result of such Asset Sale, (ii) amounts of any
distributions payable to holders of minority interests in the relevant person
or in the relevant property or assets and (iii) incremental income taxes paid
or payable as a result thereof.

 

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

 

“Non-Increasing Canadian Facility Lender” shall have the
meaning provided in section 2.1(f).

 

“Non-Increasing Domestic Revolving Facility Lender” shall
have the meaning provided in section 2.1(e).

 

“Note” shall mean a Domestic Revolving Note, a Domestic
Term Loan Note, a Swing Line Revolving Note or a Canadian Revolving Note.

 

“Notice of Borrowing” shall have the meaning provided in section
2.3(a).

 

“Notice of Continuation” shall have the meaning provided
in section 2.9(a).

 

“Notice of Conversion” shall have the meaning provided in
section 2.7.

 

“Notice Office” shall mean (i) with respect to the
Domestic Administrative Agent, the office of the Domestic Administrative Agent
at 629 Euclid Avenue, Second Floor, Cleveland, Ohio 44114, Attention: Agent
Services Division, Locator number 3028 (facsimile: (216) 222-0103), or such
other

 

23

 

office, located in a city in the United States Eastern Time Zone, as
the Domestic Administrative Agent may designate to the Borrowers or Lenders
from time to time and (ii) with respect to the Canadian Administrative Agent,
the office of the Canadian Administrative Agent at 161 Bay Street, Suite 4240,
Toronto, Ontario M5J2S1  (facsimile: (416) 363-7574), or such other
office  as
the Canadian Administrative Agent may designate to the Borrowers or Lenders
from time to time.

 

“Notice of Swing Line Refunding” shall have the meaning
provided in section 2.5(a).

 

“Obligations” shall mean (a) all amounts, direct or
indirect, contingent or absolute, of every type or description, and at any time
existing, owing by any of the Borrowers or any other Credit Party to either
Administrative Agent or any Lender pursuant to the terms of this Agreement or
any other Credit Document and (b) all amounts direct or indirect, contingent or
absolute, of every type or description, and at any time existing, owing by
Genlyte Group or any of its Material Subsidiaries under and pursuant to a
Specified Hedge Agreement; provided, that (i) Obligations of Genlyte Group or any
Material Subsidiary under any Specified Hedge Agreement
shall be secured and guaranteed pursuant to the Security Documents only to the
extent that, and for so long as, the other Obligations are so secured and
guaranteed, (ii) any release of Collateral or Guarantors effected in the manner
permitted by this Agreement shall not require the consent of holders of
obligations under Specified Hedge Agreements (other than, as to
any such holders that are Lenders, in their capacity as Lenders hereunder),
and (iii) the amount of Obligations under any Specified Hedge
Agreement that is guaranteed and secured by the Security
Documents shall not exceed the amount that would be payable (or would permit
the Lender or Lender Affiliate counterparty thereto to cause to become payable)
by, as the case may be, Genlyte Group or its Material Subsidiary that is party
thereto (after giving effect to any netting agreement) upon the occurrence of
any default or other termination thereunder (after notice and opportunity to
cure to the extent, if any, provided for in such Specified Hedge
Agreement).

 

“Operating Lease” as applied to any person shall mean any
lease of any property (whether real, personal or mixed) by that person as
lessee which, in conformity with GAAP, is not accounted for as a Capital Lease
on the balance sheet of that person.

 

“Participant” shall mean a Domestic Facility Participant
and/or a Canadian Facility Participant, as applicable.

 

“Payment Office” shall mean (i) with respect to
Borrowings under the Domestic Revolving Facility or the Swing Line Revolving
Facility, the office of the Domestic Administrative Agent at 629 Euclid Avenue,
Second Floor, Cleveland, Ohio 44114, Attention: Agent Services Division,
Locator number 3028 (facsimile: (216) 222-0103), or such other office, located
in a city in the United States Eastern Time Zone, as the Domestic
Administrative Agent may designate to the Borrowers or Domestic Revolving
Facility Lenders from time to time and (ii) with regard to Borrowings under the
Canadian Revolving Facility, the office of the Canadian Administrative Agent at
161 Bay Street, Suite 4240, Toronto, Ontario M5J2S1  (facsimile: (416) 363-7574),
or such other office  as the Canadian Administrative Agent may
designate to the Borrowers or Canadian Facility Lenders from time to time.

 

24

 

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

 

“Permitted Acquisition” shall mean and include any
Acquisition as to which all of the following conditions are satisfied:

 

(i)            such Acquisition
involves a line or lines of business which is complementary to the lines of
business in which a Borrower or any of its Material Subsidiaries, as the case
may be, making the Acquisition is engaged on the Effective Date, unless the Required
Lenders specifically approve or consent to such Acquisition in writing;

 

(ii)           such Acquisition is not
actively opposed by the Board of Directors (or similar governing body) of the
selling person or the person whose equity interests are to be acquired, unless all of the
Lenders specifically approve or consent to such Acquisition in writing; and

 

(iii)          Genlyte Group has
reasonably determined that, on a pro forma basis, such Acquisition is not likely to cause
a breach of the financial covenants contained in sections 11.7 and 11.8;

 

provided, that the
term Permitted Acquisition specifically excludes any loans, advances or
minority investments otherwise permitted pursuant to section 11.5.

 

“Permitted Liens” shall mean Liens described in section
11.3.

 

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

 

“Plan” shall mean any pension plan as defined in section
3(2) of ERISA and any multiemployer or single-employer plan as defined in
section 4001 of ERISA, which is maintained or contributed to by (or to which
there is an obligation to contribute by) a Borrower or any Subsidiary or an
ERISA Affiliate, and each such plan for the five year period immediately
following the latest date on which a Borrower or any Subsidiary or an ERISA
Affiliate maintained, contributed to or had an obligation to contribute to such
plan.

 

“Pledge Agreement” shall mean each Pledge Agreement
between Genlyte Group, Genlyte Thomas, Genlyte Intangible Inc., Canlyte Inc.,
Lumec Holding Corp. or other Credit Party, and the Administrative Agents, as
collateral agents, as the same may be amended or modified from time to time,
which secures the Obligations.

 

“Pledged Entity” shall mean each
Person, the capital stock or other equity or ownership interests of which has
been pledged under a Pledge Agreement.

 

“Principal Officer” shall mean any officer of a Borrower
whose title is (including any title which is substantially the same as):  (i) Chief Executive Officer, (ii) President,
(iii) Chief Financial Officer or Vice President-Finance, or (iv) Treasurer.

 

25

 

“Prohibited Transaction” shall mean a transaction with
respect to a Plan that is prohibited under section 4975 of the Code or section
406 of ERISA and not exempt under section 4975 of the Code or section 408 of
ERISA.

 

“Purchase Agreement” shall mean the Purchase Agreement
dated May 20, 2004 among the Thomas Industries, Inc., as seller (for itself and
its “Transferring Affiliates”), Genlyte Group, as purchaser in respect of the
Thomas Interests, and Genlyte Thomas, as amended by the letter agreement among
such parties dated July 29, 2004.

 

“Purchase Date” shall have the meaning provided in section
2.5(b).

 

“Qualified Receivables Facility Requirements” means, with
respect to any accounts receivable securitization facility entered into by
Genlyte Group and any one or more of its Subsidiaries after the Closing Date,
the following requirements:

 

(i)            Genlyte Group shall
have delivered to the Administrative Agent (A) no later than ten (10) Business
Days prior to the effective date of such accounts receivable securitization
facility (or such lesser period as the Administrative Agents may approve in
writing), drafts of any and all documents evidencing, securing or otherwise
governing such accounts receivable securitization facility and (B) no later
than three (3) Business Days prior to the effective date of such accounts
receivable securitization facility (or such lesser period as the Administrative
Agents may approve in writing), final versions of all such documents;

 

(ii)           the “seller” (or
equivalent party otherwise named) to Persons who are not Affiliates of Genlyte
Group of accounts receivable under such accounts receivable securitization
facility is a Receivables Facility Subsidiary.

 

(iii)          the maximum amount of
“capital” (or equivalent term used to describe obligations outstanding under
such accounts receivable securitization facility that would be characterized as
loan principal if such accounts receivable securitization facility were
structured as a secured lending facility rather than as a purchase facility)
that is permitted to be outstanding at any time shall not be greater than
$110,000,000;

 

(iv)          the scheduled maturity
of such accounts receivable securitization facility shall not be earlier than
362 days after the initial effective date of such accounts receivable
securitization facility;

 

(v)           the Receivables
Facility Subsidiary thereunder is required to apply all funds available to it
(after giving effect to the allocation of funds to reserves required under the
terms of such accounts receivable securitization facility and to the payment of
interest, principal and other amounts owed under such accounts receivable
securitization facility) to pay the purchase price for accounts receivable;

 

(vi)          the Administrative
Agents are satisfied that the “amortization events” (or equivalent term used to
describe default or termination events in respect of such accounts

 

26

 

receivable securitization facility) in such accounts
receivable securitization facility shall not be made more onerous on Genlyte
Group and its Subsidiaries that are party thereto in any material respect than
those contained in the Qualified Receivables Purchase Agreement, as it provides
on the date of this Agreement (or is modified in accordance with the provisions
of this Agreement);

 

(vii)         the Administrative Agents
are satisfied that the degree of recourse to Genlyte Group and Subsidiaries
party thereto under or in respect of such accounts receivable securitization
facility shall not be increased in any material respect from the degree of
recourse to Genlyte Group and its Subsidiaries that are parties to the
Qualified Receivables Sale Agreement, the Qualified Receivables Purchase
Agreement and the other Transaction Documents, as they provide on the date of
this Agreement (or are modified in accordance with the provisions of this
Agreement), and in no event shall Genlyte or any of its Subsidiaries (other
than the Receivables Facility Subsidiary) have recourse liability under such
accounts receivable securitization facility, other than Standard
Securitization Undertakings;

 

(viii)        the Administrative Agents
are satisfied that the covenants of Genlyte Group and its Subsidiaries that are
party to such accounts receivable securitization facility shall not be made
more restrictive (whether through the modification of existing covenants or the
provision of additional covenants) to Genlyte Group and such Subsidiaries in
any material respect than those contained in the Qualified Receivables Sale
Agreement, the Qualified Receivables Purchase Agreement and the other
Transaction Documents, as they provide on the date of this Agreement (or are
modified in accordance with the provisions of this Agreement); provided that any
such modification that conforms such covenants of such parties to such accounts
receivable securitization facility to the covenants of the Borrowers contained
in this Agreement shall not be deemed to make such covenants more restrictive
for the purposes of this clause (viii);

 

(ix)           the Administrative
Agents are satisfied that such accounts receivable securitization facility does
not, in any material respect, provide for the transfer of, or the grant of a
Lien in, (A) any property of any Credit Party, other than the Subsidiaries that
are parties to such accounts receivable securitization facility or (B) any
property of Genlyte Group or any of its Subsidiaries that is not of the type or
category of property transferred or encumbered pursuant to, as the case may be,
the Qualified Receivables Sale Agreement, the Qualified Receivables Purchase
Agreement and the other Transaction Documents, as they provide on the date of
this Agreement (or are modified in accordance with the provisions of this
Agreement); and

 

(x)            the parties to this
Agreement shall have executed and delivered to the Administrative Agents such
amendment to this Agreement as the Administrative Agents deem reasonably
necessary to amend the meanings of defined terms used in this Agreement that
are defined by reference to the Qualified Receivables Purchase Agreement, as it
provides on the date of this Agreement (or is modified in accordance with the
provisions of this Agreement), to conform to the equivalent terms defined in
the documents evidencing, securing or otherwise governing such accounts
receivable securitization facility.

 

27

 

“Qualified Receivables Transaction” means (i)
collectively, the transactions entered into by the Receivables Facility
Subsidiary and Genlyte Group, Genlyte Thomas and certain of Genlyte Thomas’
Subsidiaries pursuant to, collectively, the Qualified Receivables Sale
Agreement, the Qualified Receivables Purchase Agreement and the other
Transaction Documents and (ii) any replacement accounts receivable
securitization facility that meets the Qualified Receivables Facility Requirements.

 

“Qualified Receivables Purchase
Agreement” means the Receivables Purchase Agreement dated as of
August 2, 2004 among the Receivables Facility Subsidiary, as seller, Genlyte
Thomas, as servicer, Jupiter Securitization Corporation, the banks and other
financial institutions party thereto and Bank One, NA (Main Office Chicago), as
agent, as such agreement may be amended, restated or otherwise modified from
time to time in accordance with the provisions of this Agreement.

 

“Qualified Receivables Sale Agreement”
means the Receivables Sale Agreement dated as of August 2, 2004, among Genlyte
Thomas and certain of its Subsidaries from time to time party thereto, as
sellers, and the Receivables Facility Subsidiary, as purchaser, as such
agreement may be amended, restated or otherwise modified from time to time in
accordance with the provisions of this Agreement.

 

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

 

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

 

“Receivables” shall have the meaning provided in the
Qualified Receivables Purchase Agreement.

 

“Receivables Facility Assets” means, collectively, (i)
all Receivables which are described as being transferred by Genlyte Thomas or
certain of its Subsidiaries or the Receivables Facility Subsidiary pursuant to
a Qualified Receivables Transaction, (ii) all Related Security (as defined in
the Qualified Receivables Purchase Agreement), and (iii) all Collections (as
defined in the Qualified Receivables Purchase Agreement) and other proceeds of
such Receivables.

 

“Receivables Facility Subsidiary” means (i) Genlyte Receivables
Corporation, a Delaware corporation, that is a bankruptcy-remote, special
purpose, Wholly-Owned Subsidiary of Genlyte Group created in connection with
the Qualified Receivables Transaction that is effective on the Closing Date,
which Subsidiary shall engage in no activities other than those incidental to
such Qualified Receivables Transaction and which is designated as a Receivables
Facility Subsidiary therefor by Genlyte Group’s Board of Directors and (ii)
with respect to any other Qualified Receivables Transaction entered into by
Genlyte Group or any of its Subsidiaries after the Closing Date, any other
bankruptcy-remote, special purpose, Wholly-Owned Domestic Subsidiary of Genlyte
Group which engages in no activities other than those incidental to the
Qualified Receivables Transaction to which it is a party and which is
designated as the Receivables Facility Subsidiary therefor by Genlyte Group’s
Board of Directors, in each case so long as neither Genlyte Group nor

 

28

 

any of its other Subsidiaries has any obligation to maintain or
preserve such Subsidiary’s financial condition or cause such Subsidiary to
achieve certain levels of operating results. 
As used in the foregoing sentence, activities that are “incidental” to a
Qualified Receivables Transaction shall include, without limitation, the return
to Genlyte Group of capital contributed to the Receivables Facility Subsidiary
by Genlyte Group, the repayment to Genlyte Group of loans advanced to the Receivables
Facility Subsidiary by Genlyte Group, the advance of loans by the Receivables
Facility Subsidiary to Genlyte Group or any Material Subsidiary, and the
acceptance by the Receivables Facility Subsidiary of repayments by Genlyte
Group of loans advanced to Genlyte Group by the Receivables Facility
Subsidiary.

 

“Receivables Purchase Note” means the “Subordinated Note”
as defined in, and issued by the Receivables Facility Subsidiary pursuant to,
the Qualified Receivables Sale Agreement to evidence its obligation to pay the
purchase price for Receivables to Genlyte Thomas or certain of its Subsidiaries
in connection with a Qualified Receivables Transaction.

 

“Redeemable Stock” shall mean with respect to any person
any capital stock or similar equity interests of such person that (i) is by its
terms subject to mandatory redemption, in whole or in part, pursuant to a
sinking fund, scheduled redemption or similar provisions, at any time prior to
the Maturity Date; or (ii) otherwise is required to be repurchased or retired
on a scheduled date or dates, upon the occurrence of any event or circumstance,
or at the option of the holder or holders thereof, or otherwise, at any time
prior to the Maturity Date, other than any such redemption, repurchase or
retirement occasioned by a “change of control” or similar event.

 

“Reference Banks” shall mean (a) with respect to Domestic
Revolving Loans and Domestic Term Loans (i) National City Bank, and (ii) any
other Lender or Lenders (A) selected as a Reference Bank by the Domestic
Administrative Agent and the Required Domestic Revolving Facility Lenders and
Required Domestic Term Loan Lenders, and (B) whose selection is approved by the
Domestic Facility Borrowers, such approval not to be unreasonably withheld or
delayed and (b) with respect to Canadian Revolving Loans (i) Bank One and (ii)
any other Lender or Lenders (A) selected as a Reference Bank by the Canadian
Administrative Agent and the Required Canadian Facility Lenders, and (B) whose
selection is approved by the Canadian Facility Borrowers, such approval not to
be unreasonably withheld or delayed.

 

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

 

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

 

“Reportable Event” shall mean an event described in
section 4043 of ERISA or the regulations thereunder with respect to a Plan,
other than those events as to which the notice requirement is waived under the
PBGC Regulations.

 

29

 

“Required Canadian Facility Lenders”
shall mean Non-Defaulting Lenders whose outstanding Canadian Revolving Loans
and Unutilized Canadian Revolving Commitments constitute more than 51% of the
sum of the total outstanding Canadian Revolving Loans and Unutilized Canadian
Revolving Commitments of Non-Defaulting Lenders (provided that, for purposes
hereof, none of the Borrowers nor any Affiliate shall be included in (i) the
Lenders holding such amount of the Canadian Revolving Loans or having such amount
of the Unutilized Canadian Revolving Commitments, or (ii) determining the
aggregate unpaid principal amount of the Canadian Revolving Loans or Unutilized
Canadian Revolving Commitments).

 

“Required Domestic Revolving Facility
Lenders” shall mean Non-Defaulting Lenders whose outstanding
Domestic Revolving Loans and Unutilized Domestic Revolving Commitments
constitute more than 51% of the sum of the total outstanding Domestic Revolving
Loans and Unutilized Domestic Revolving Commitments of Non-Defaulting Lenders
(provided that, for purposes hereof, none of the Borrowers nor any Affiliate
shall be included in (i) the Lenders holding such amount of the Domestic
Revolving Loans or having such amount of the Unutilized Domestic Revolving
Commitments, or (ii) determining the aggregate unpaid principal amount of the
Domestic Revolving Loans or Unutilized Domestic Revolving Commitments).

 

“Required Domestic Term Loan Lenders”
shall mean, prior to the advance of the Domestic Term Loans, Non-Defaulting
Lenders whose Domestic Term Loan Commitments constitute more than 51% of the
sum of the total outstanding Domestic Term Loan Commitments of Non-Defaulting
Lenders and, thereafter, Domestic Term Loan Lenders whose outstanding Domestic
Term Loans constitute more than 51% of the sum of the total outstanding
Domestic Term Loans (provided that, for purposes hereof, none of the Borrowers
nor any Affiliate shall be included in (i) the Lenders holding such amount of
the Domestic Term Loans or having such amount of the Domestic Term Loan
Commitments, or (ii) determining the aggregate unpaid principal amount of the
Domestic Term Loans or Domestic Term Loan Commitments).

 

“Required Lenders” shall mean Non-Defaulting Lenders
whose outstanding Domestic Revolving Loans, Canadian Revolving Loans,
Unutilized Domestic Revolving Commitments, Unutilized Canadian Revolving
Commitments and Domestic Term Loans (or prior to the advance of the Domestic
Term Loans, Domestic Term Loan Commitments) constitute more than 51% of the sum
of the total outstanding Domestic Revolving Loans, Canadian Revolving Loans,
Unutilized Domestic Revolving Commitments, Unutilized Canadian Revolving
Commitments and Domestic Term Loans (or prior to the advance of the Domestic
Term Loans, Domestic Term Loan Commitments) of Non-Defaulting Lenders (provided
that, for purposes hereof, none of the Borrowers nor any Affiliate shall be
included in (i) the Lenders holding such amount of the Domestic Revolving
Loans, Canadian Revolving Loans or Domestic Term Loans or having such amount of
the Unutilized Domestic Revolving Commitments, Unutilized Canadian Revolving
Commitments or Domestic Term Loan Commitments, or (ii) determining the
aggregate unpaid principal amount of the Domestic Revolving Loans, Canadian
Revolving Loans, Domestic Term Loans, Unutilized Domestic Revolving
Commitments, Unutilized Canadian Revolving Commitments or Domestic Term Loan
Commitments).

 

“Sale and Lease-Back Transaction” shall mean any
arrangement with any person providing for the leasing by a Borrower or any
Subsidiary of any property (except for temporary leases for a

 

30

 

term, including any renewal thereof, of not more than one year), which
property has been or is to be sold or transferred by the Borrower or such
Subsidiary to such person.

 

“S&P” shall mean Standard & Poor’s Ratings Group,
a division of McGraw Hill, Inc., and its successors.

 

“SEC” shall mean the United States Securities and
Exchange Commission.

 

“SEC Regulation D” shall mean Regulation D as promulgated
under the Securities Act of 1933, as amended, as the same may be in effect from
time to time.

 

“Security Documents” shall mean the Pledge Agreements,
the Guaranties and each other document pursuant to which any guaranty or Lien
is granted by any Borrower or any of their respective Subsidiaries (other than
the Receivables Facility Subsidiary) to the Domestic Administrative Agent or
the Canadian Administrative Agent, as the case may be, as security for any of
the Obligations.

 

“Solvent” shall mean,
with respect to any Person on a particular date, that on such date (i) 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, (ii) the present fair saleable 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, (iii) such Person
is able to realize upon its assets and pay its debts and other liabilities,
contingent obligations and other commitments as they mature in the normal
course of business, (iv) such Person does not intend to, and does not believe
that it will, incur debts or liabilities beyond such Person’s ability to pay as
such debts and liabilities mature, and (v) such Person is not engaged in
business or a transaction, and is not about to engage in business or a
transaction, for which such Person’s property would constitute unreasonably
small capital after giving due consideration to the prevailing practice in the
industry in which such Person is engaged.

 

“Specified Hedge Agreement”
shall mean any Hedge Agreement entered into in
compliance with the provisions of section 10.10 and (a) entered into by
(i) Genlyte Group or any of its Material Subsidiaries and (ii) any Lender or
any Affiliate thereof and (b) which has been designated by such Lender or
Affiliate thereof and Genlyte Group, by notice to the Administrative Agents not
later than 30 days after the execution and delivery thereof by, as the case may
be, Genlyte Group or such Material Subsidiary, as a Specified Hedge Agreement;  provided that the designation of any Hedge
Agreement as a Specified Hedge
Agreement shall not create in favor of any Lender or Affiliate
thereof that is a party thereto any rights in connection with the management or
release of any Collateral or of the obligations of any Guarantor (other than, as to any such party that is a Lender, its rights in its
capacity as a Lender hereunder); and the amount of exposure
of, or owing to, any Lender under any Specified Hedge Agreement shall not be
taken into account for the purpose of determining Required Canadian Facility
Lenders, Required Domestic Revolving Facility Lenders, Required Domestic Term Loan
Lenders, or Required Lenders.

 

31

 

“Standard Permitted Liens” shall mean the following:

 

(i)            Liens for taxes not
yet delinquent or Liens for taxes being contested in good faith and by
appropriate proceedings for which adequate reserves have been established;

 

(ii)           Liens in respect of
property or assets imposed by law which were incurred in the ordinary course of
business, such as carriers’, warehousemen’s, materialmen’s and mechanics’ Liens
and other similar Liens arising in the ordinary course of business, which do
not in the aggregate detract from the value of such property or assets or
materially impair the use thereof in the operation of the business of the
Borrowers or any of their respective Subsidiaries and which are not delinquent
or remain payable without penalty or which are being contested in good faith
and by appropriate proceedings, which proceedings have the effect of preventing
the forfeiture or sale of the property subject thereto;

 

(iii)          Liens (other than any
Lien imposed by ERISA) incurred or deposits made in the ordinary course of
business in connection with workers’ compensation, unemployment insurance and
other types of social security; and mechanic’s Liens, carrier’s Liens, and
other Liens to secure the performance of tenders, statutory obligations,
contract bids, government contracts, performance and return-of-money bonds and
other similar obligations, incurred in the ordinary course of business
(exclusive of obligations in respect of the payment for borrowed money),
whether pursuant to statutory requirements, common law or consensual
arrangements;

 

(iv)          Easements,
rights-of-way, zoning or deed restrictions, minor defects or irregularities in
title and other similar charges or encumbrances not adversely affecting in any
material respect the ordinary conduct of the business of the Borrowers or any
of their respective Subsidiaries considered as an entirety;

 

(v)           Liens arising from
judgments, decrees or attachments in circumstances not constituting an Event of
Default under section 12.1(f);

 

(vi)          Leases or subleases
granted to others not interfering in any material respect with the business of
the Borrowers or any of their respective Subsidiaries and any interest or title
of a lessor under any lease not in violation of this Agreement; and

 

(vii)         Rights of consignors and
consignees in respect of consignment arrangements entered into by a Borrower or
any of its Subsidiaries in the ordinary course of business and consistent with
past practice.

 

“Standard Securitization Undertakings” shall
mean representations, warranties, covenants and indemnities made by any Credit
Party in connection with a Qualified Receivables Transaction that are customary
for accounts receivables securitization facilities, provided that Standard Securitization  Undertakings shall not
include Indebtedness (other than Obligations, as defined in the Qualified
Receivables Purchase Agreement) or Guaranty Obligations or recourse obligations
in respect of Receivables that are uncollectible on account of the insolvency,
bankruptcy or lack of creditworthiness of the applicable obligor thereof.  By way of clarification and not limitation,
the

 

32

 

representations, warranties, covenants and indemnities made by certain
of the Credit Parties under and pursuant to the Transaction Documents, as they
provide on the date of this Agreement (and as modified in accordance with this
Agreement), shall be deemed to be Standard Securitization Undertakings.

 

“Stated Amount” of each Letter of Credit shall mean the
maximum available to be drawn thereunder (regardless of whether any conditions
or other requirements for drawing could then be met).

 

“Subsidiary” of any person shall mean and include (i) any
corporation more than 50% of whose stock of any class or classes having by the
terms thereof ordinary voting power to elect a majority of the directors of
such corporation (irrespective of whether or not at the time stock of any class
or classes of such corporation shall have or might have voting power by reason
of the happening of any contingency) is at the time owned by such person
directly or indirectly through Subsidiaries and (ii) any partnership,
association, joint venture or other entity in which such person directly or
indirectly through Subsidiaries, has more than a 50% equity interest at the
time.  Unless otherwise expressly
provided, all references herein to “Subsidiary” shall mean a Subsidiary of a
Borrower.

 

“Swing Line Exposure” means, at any time, the aggregate
outstanding principal amount of the Swing Line Revolving Loans at such
time.  The Swing Line Exposure of any
Domestic Revolving Facility Lender at any time will be its Domestic Revolving
Percentage of the total Swing Line Exposure at such time.

 

“Swing Line Lender” shall have the meaning provided in
the first paragraph of this Agreement and shall include any other single Lender
to whom the Swing Line Lender has transferred its entire Swing Line Revolving
Commitment and any Swing Line Revolving Loans.

 

“Swing Line Participation Amount” shall have the meaning
provided in section 2.5(b).

 

“Swing Line Revolving Commitment” shall mean, with
respect to the Swing Line Lender, the amount set forth opposite such Lender’s
name in Annex I as its “Swing Line Revolving Commitment” as the same may
be reduced from time to time pursuant to any one or more of sections 6.1,
6.2 and 12.2 or adjusted from time to time as a result of
assignments to or from the Swing Line Lender pursuant to section 15.4.  As of the Closing Date, the Swing Line
Revolving Commitment shall be $20,000,000.

 

“Swing Line Revolving Facility” shall mean the credit
facility evidenced by the Swing Line Revolving Commitment.

 

“Swing Line Revolving Loan” shall have the meaning
provided in section 2.1(b).

 

“Swing Line Revolving Note” shall have the meaning
provided in section 2.6(a).

 

33

 

“Synthetic Lease” shall mean any lease (i) which is
accounted for by the lessee as an Operating Lease, and (ii) under which the
lessee is intended to be the “owner” of the leased property for Federal income
tax purposes.

 

“Taxes” shall have the meaning
provided in section 7.4.

 

“Testing Period” shall mean for any determination, a
single period consisting of the four consecutive fiscal quarters of the
Borrowers then last ended (whether or not such quarters are all within the same
fiscal year), except
that if a particular provision of this Agreement indicates that a Testing
Period shall be of a different specified duration, such Testing Period shall
consist of the particular fiscal quarter or quarters of the Borrowers then last
ended which are so indicated in such provision.

 

“Thomas Interests” and “Thomas Sellers” shall have the meanings
provided in the Preliminary Statements.

 

“Total Commitment” shall mean, collectively, the Total
Revolving Commitment and the Total Domestic Term Loan Commitment.

 

“Total Revolving Commitment” shall mean, collectively,
the Total Canadian Revolving Commitment and the Total Domestic Revolving
Commitment.

 

“Total Canadian Revolving Commitment”
shall mean, collectively, the Canadian Revolving Commitments of the Canadian
Facility Lenders, which, as of the Closing Date, shall be CDN$27,000,000.

 

“Total Domestic Revolving Commitment” shall mean,
collectively, the Domestic Revolving Commitments of the Domestic Revolving
Facility Lenders, which, as of the Closing Date, shall be $180,000,000.

 

“Total Domestic Term Loan Commitment” shall mean,
collectively, the Domestic Term Loan Commitments of the Domestic Term Loan
Lenders, which shall be $100,000,000.

 

“Transaction Documents” shall have the meaning provided
in the Qualified Receivables Purchase Agreement, as such documents may be
amended, restated or otherwise modified from time to time in accordance with
the provisions of this Agreement.

 

“Type” shall mean any type of Loan determined with
respect to the interest option applicable thereto, i.e., a Domestic Prime Rate Loan, a Flex
Eurodollar Loan, a Eurodollar Loan, a Canadian Prime Rate Loan or a CDOR Loan.

 

“UCC” shall mean the Uniform Commercial Code.

 

“Unfunded Current Liability” of any Plan shall mean the
amount, if any, by which the actuarial present value of the accumulated plan
benefits under the Plan as of the close of its most recent plan year exceeds
the fair market value of the assets allocable thereto, each determined in

 

34

 

accordance with Statement of Financial Accounting Standards No. 87,
based upon the actuarial assumptions used by the Plan’s actuary in the most
recent annual valuation of the Plan.

 

“United States” and “U.S.” each means United States of America.

 

“Unpaid Canadian Facility Drawing” shall have the meaning
provided in section 4.3(a).

 

“Unpaid Domestic Facility Drawing” shall have the meaning
provided in section 3.3(a).

 

“Unpaid Drawings” shall mean, collectively, the Unpaid
Domestic Facility Drawings and the Unpaid Canadian Facility Drawings.

 

“Unutilized Canadian Revolving Commitment”  for
any Canadian Facility Lender at any time such Lender’s Canadian Revolving
Commitment at such time, less (1) the principal amount of Canadian Revolving
Loans made by such Canadian Facility Lender and outstanding at such time, less (2) such Canadian Facility Lender’s Canadian
Revolving Facility Percentage of the Canadian Facility Letter of Credit
Outstandings at such time.

 

“Unutilized Domestic Revolving Commitment” for any
Domestic Revolving Facility Lender at any time shall mean such Lender’s
Domestic Revolving Commitment at such time, less (1) the principal amount of Domestic
Revolving Loans made by such Domestic Revolving Facility Lender and outstanding
at such time, less (2) such Domestic Revolving Facility Lender’s
Domestic Revolving Facility Percentage of the Domestic Facility Letter of
Credit Outstandings at such time, less (3) such
Domestic Revolving Facility Lender’s Domestic Revolving Facility Percentage of
the aggregate unpaid principal balance of the Swing Line Revolving Loans at
such time.

 

“Unutilized Swing Line Revolving Commitment” for the
Swing Line Lender at any time shall mean the excess of (i) the Swing Line
Lender’s Swing Line Revolving Commitment at such time over (ii) the aggregate
principal amount of Swing Line Revolving Loans made by the Swing Line Lender
and outstanding at such time.

 

“Unutilized Total Canadian Revolving Commitment” shall
mean, at any time, the excess of (i) the Total Canadian Revolving Commitment at
such time over (ii) the aggregate principal amount of all Canadian Revolving
Loans and Canadian Facility Letter of Credit Outstandings then outstanding.

 

“Unutilized Total Domestic Revolving Commitment” shall
mean, at any time, the excess of (i) the Total Domestic Revolving Commitment at
such time over (ii) the sum of the aggregate principal amount of all Domestic
Revolving Loans and Swing Line Revolving Loans and the Domestic Facility Letter
of Credit Outstandings then outstanding.

 

“Wholly-Owned Material Subsidiary” shall mean each
Wholly-Owned Subsidiary that is also a Material Subsidiary.

 

“Wholly-Owned Subsidiary” shall mean each Subsidiary, at
least 95% of whose capital stock, equity interests, membership interests and
partnership interests, other than director’s

 

35

 

qualifying shares or similar interests, are owned directly or
indirectly by the Gentlye Group, provided however for the purposes of
this Agreement, the term “Wholly-Owned Subsidiary” shall also include
Lumec-Schreder Inc., a corporation organized under the laws of Quebec, for so
long as not less than 50.5% of the capital stock of Lumec-Schreder Inc. is
owned by a Borrower or a Wholly-Owned Subsidiary of a Borrower.

 

“Written”, “written” or “in writing” shall mean any form of written communication
or a communication by means of telex, facsimile transmission, e-mail electronic
transmission, telegraph or cable.

 

1.2.         Computation
of Time Periods. 
In this Agreement in the computation of periods of time from a specified
date to a later specified date, the word “from” means “from and including” and
the words “to” and “until” each means “to but excluding”.

 

1.3.         Accounting Terms.  Except as otherwise specifically provided
herein, all terms of an accounting or financial nature shall be construed in
accordance with GAAP, as in effect from time to time; provided that, if the Borrowers notify the
Administrative Agents that the Borrowers request an amendment to any provision
of section 10 or 11 hereof to eliminate the effect of any change
occurring after the Effective Date in GAAP or in the application thereof to
such provision (or if the Administrative Agents notify the Borrowers that the
Required Lenders request an amendment to any such provision hereof for such
purposes), regardless of whether any such notice is given before or after such
change in GAAP or in the application thereof, then such provision shall be
interpreted on the basis of GAAP as in effect and applied immediately before
such change shall have become effective until such notice shall have been
withdrawn or such provision amended in accordance with the requirements of this
Agreement.  Notwithstanding anything in
this section 1.3 to the contrary, in the event that there is a change in
GAAP or in the application thereof occurring after the Effective Date mandating
the expensing of stock options or comparable equity based compensation, without
further action by the Administrative Agents, the Lenders, the Borrowers or any
other Credit Party, such changes requiring the expensing of stock options or
comparable equity based compensation shall be disregarded and this Agreement
shall be interpreted on the basis of GAAP as in effect and applied immediately
before such change shall have become effective.

 

1.4.         Terms Generally.  The definitions of terms herein shall apply
equally to the singular and plural forms of the terms defined. Whenever the
context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms. The words “include”, “includes” and “including”
shall be deemed to be followed by the phrase “without limitation”. The word
“will” shall be construed to have the same meaning and effect as the word
“shall”. Unless the context requires otherwise, (a) any definition of or
reference to any agreement, instrument or other document herein shall be
construed as referring to such agreement, instrument or other document as from
time to time amended, supplemented or otherwise modified (subject to any
restrictions on such amendments, supplements or modifications set forth
herein), (b) any reference herein to any person shall be construed to include
such person’s successors and assigns, (c) the words “herein”, “hereof” and
“hereunder”, and words of similar import, shall be construed to refer to this
Agreement in its entirety and not to any particular provision hereof, (d) all references
herein to sections, Annexes and Exhibits shall be construed to refer to
sections of, and Annexes and Exhibits to, this Agreement, and (e) the words
“asset” and “property” shall be construed to have the same meaning and effect
and to refer to

 

36

 

any and all real property, tangible and intangible assets and
properties, including cash, securities, accounts and contract rights, and
interests in any of the foregoing.

 

1.5.         Additional
Borrowers. 
By execution of an Additional Borrower Joinder by a Wholly-Owned
Subsidiary (other than the Receivables Facility Subsidiary) and upon acceptance
thereof by the Administrative Agents and the Required Lenders, each in its sole
discretion, and such Person’s satisfaction of all conditions and completion of
all deliveries specified in the Additional Borrower Joinder, this Agreement
shall be deemed to be amended so that such Person shall become for all purposes
of this Agreement as if an original signatory hereto, and shall be admitted as
a Borrower hereunder, and this Agreement shall be binding for all purposes on
such Person as a Borrower as if an original signatory hereto.

 

1.6.         Appointment
of Genlyte Group as Representative.  For purposes of this Agreement, each Borrower other than Genlyte
Group (i) authorizes Genlyte Group to make such requests, give such notices or
furnish such certificates to either Administrative Agent or any Lender as may
be required or permitted by this Agreement for the benefit of such Borrower and
(ii) authorizes the Administrative Agents to treat such requests, notices,
certificates or consents given or made by Genlyte Group to have been made,
given or furnished by the applicable Borrower for purposes of this Agreement.  Each Administrative Agent and each Lender
shall be entitled to rely on each such request, notice, certificate or consent
made, given or furnished by the Borrower pursuant to the provisions of this
Agreement or any other Credit Document as being made or furnished on behalf of,
and with the effect of irrevocably binding, such Borrower.

 

1.7          Qualified
Receivables Transaction.   The inclusion of “Aggregate Capital” in the definition of
Consolidated Total Debt and “Yield” in the definition of Consolidated Interest
Expense, and the inclusion of various other references to a Qualified
Receivables Transaction, the Qualified Receivables Purchase Agreement, the
Qualified Receivables Sale Agreement and terms defined therein, are made to
protect certain interests of the Lenders and the Credit Parties and shall not
be construed to impugn the stated intentions of the parties to a Qualified
Receivables Transaction, the Qualified Receivables Purchase Agreement and the
Qualified Receivables Sale Agreement that the sales and purchases of Receivables
Facility Assets contemplated thereby are “true” and outright sales and
purchases.

 

1.8          Currency
Equivalents; Canadian Facility Amounts.   For purposes of this Agreement, except as
otherwise specified herein, (i) the equivalent in Dollars of Canadian Dollars
shall be determined by using the quoted spot rate at which the Canadian
Administrative Agent offers to exchange Dollars for Canadian Dollars at its
Payment Office at 9:00 A.M. (local time at the Payment Office) on the Business
Day on which such equivalent is to be determined, and (ii) the equivalent in
Canadian Dollars of Dollars shall be determined by using the quoted spot rate
at which the Canadian Administrative Agent’s Payment Office offers to exchange
Canadian Dollars for Dollars at the Payment Office at 9:00 A.M. (local time at
the Payment Office) on the Business Day on which such equivalent is to be
determined.  Unless the context
otherwise requires, references in this Agreement or any of the other Credit Documents
to the principal amounts of, or outstanding balances of, Canadian Revolving
Loans (or words of similar import) shall be deemed to refer to the sum of the
aggregate principal balance of Canadian Revolving Loans denominated in Canadian

 

37

 

Dollars then outstanding, plus the Canadian Dollar equivalent of the aggregate
principal balance of Canadian Revolving Loans denominated in Dollars then
outstanding.

 

SECTION
2.         AMOUNT AND TERMS OF LOANS.

 

2.1.         Existing
Letters of Credit; Commitments for Loans.  Upon the effectiveness of this Agreement,
all of the risk participation exposures in respect of the Existing Letters of
Credit shall be deemed to be assumed by the Domestic Revolving Facility Lenders
ratably according to their respective, as the case may be, Canadian Revolving
Facility Percentages or Domestic Revolving Facility Percentages.  Upon such effectiveness and subject to and
upon the terms and conditions herein set forth, each Lender severally agrees to
make a loan or loans (each a “Loan” and, collectively, the “Loans”) to the Borrowers, which Loans shall
be drawn, to the extent such Lender has a Commitment under a Facility for the
Borrowers, under the applicable Facility, as set forth below:

 

(a)           Domestic Revolving Facility.  Loans to the Borrowers under the Domestic
Revolving Facility (each a “Domestic Revolving Loan” and, collectively, the “Domestic Revolving Loans”)
(i) shall be made only by a Domestic Revolving Facility Lender, (ii) may be
made at any time and from time to time on and after the Closing Date and prior
to the Maturity Date; (iii) shall only be incurred by a Domestic Facility
Borrower, (iv) shall be made only in U.S. Dollars; (v) except as otherwise
provided, may, at the option of the Domestic Facility Borrowers, be incurred and
maintained as, or Converted into, Domestic Revolving Loans which are either
Domestic Prime Rate Loans or Eurodollar Loans, provided that all Domestic Revolving Loans
made as part of the same Borrowing shall, unless otherwise specifically
provided herein, consist of Domestic Revolving Loans of the same Type; (vi) may
be repaid or prepaid and reborrowed in accordance with the provisions hereof;
and(vii) may only be made if after giving effect thereto the Unutilized Total
Domestic Revolving Commitment will not be less than zero.  Without
limiting the generality of the foregoing sentence, at no time shall the sum of
(X) the aggregate unpaid principal balance of a Domestic Revolving Facility
Lender’s Domestic Revolving Loans, plus (Y) such Domestic Revolving Facility Lender’s
Domestic Revolving Facility Percentage of the Domestic Facility Letter of
Credit Outstandings at such time, plus (Z) such Domestic Revolving Facility Lender’s
Domestic Revolving Facility Percentage of the aggregate unpaid principal
balance of the Swing Line Revolving Loans at such time, exceed the Domestic
Revolving Commitment of such Domestic Revolving Facility Lender.  In addition, no Domestic Revolving Loans
shall be incurred at any time if after giving effect thereto the Domestic
Facility Borrowers would be required to prepay Revolving Loans in accordance
with section 7.2(a).  The
Obligations of the Domestic Facility Borrowers in respect of the Domestic
Revolving Facility shall be joint and several.

 

(b)           Swing Line Revolving Facility.  Loans to the Borrowers under the Swing Line
Revolving Facility (each a “Swing Line Revolving Loan” and, collectively, the “Swing Line Revolving Loans”)
(i) shall be made only by the Swing Line Lender, (ii) may only be incurred by a
Domestic Facility Borrower, (iii) may be made at any time and from time to time
on and after the Closing Date and prior to the Maturity Date; (iv) shall be
made only in U.S. Dollars; (v) except as otherwise provided, may, at the option
of the Domestic Facility

 

38

 

Borrowers, be incurred and maintained as Swing Line
Revolving Loans which are either Domestic Prime Rate Loans or Flex Eurodollar
Loans; (vi) may be repaid or prepaid and reborrowed in accordance with the
provisions hereof; (vii) may only be made if after giving effect thereto the
Unutilized Total Domestic Revolving Commitment exceeds zero; and (viii) shall
not exceed for the Swing Line Lender at any time outstanding its Swing Line
Revolving Commitment at such time.   The
Obligations of the Domestic Facility Borrowers in respect of the Swing Line
Revolving Facility shall be joint and several.

 

(c)           Canadian Revolving Facility.  Loans to the Borrowers under the Canadian
Revolving Facility (each a “Canadian Revolving Loan” and, collectively, the “Canadian Revolving Loans”)
(i) shall be made only by a Canadian Facility Lender, (ii) may be made at any
time and from time to time on and after the Closing Date and prior to the
Maturity Date; (iii) shall only be incurred by a Canadian Facility Borrower,
(iv) shall be made only in, at the option of the Canadian Facility Borrowers,
(A) Canadian Dollars or (B) Dollars if at the time of such Borrowing Dollars
are readily and freely transferable and convertible into Canadian Dollars; (v) except
as otherwise provided, may, at the option of the Canadian Facility Borrowers,
be incurred and maintained as, or Converted into, Canadian Revolving Loans
which are (A) as to Borrowings denominated in Canadian Dollars, either Canadian
Prime Rate Loans or CDOR Loans and (B) as to Borrowings denominated in Dollars,
either Domestic Prime Rate Loans or Eurodollar Loans and, provided that all Canadian Revolving Loans
made as part of the same Borrowing shall, unless otherwise specifically
provided herein, consist of Canadian Revolving Loans of the same Type and of
the same currency; (vi) may be repaid or prepaid, in the same currency in which
they were borrowed, and reborrowed in accordance with the provisions hereof;
and (vii) may only be made if after giving effect thereto the Unutilized Total
Canadian Revolving Commitment will not be less than zero.  Without
limiting the generality of the foregoing sentence, at no time shall the sum of
(X) the aggregate unpaid principal balance of a Canadian Facility Lender’s
Canadian Revolving Loans denominated in Canadian Dollars, plus (Y) the Canadian Dollar equivalent of
the aggregate unpaid principal balance of such Canadian Facility Lender’s
Canadian Revolving Loans denominated in Dollars, plus (Z) such Canadian Facility Lender’s
Canadian Revolving Facility Percentage of the Canadian Facility Letter of
Credit Outstandings at such time, exceed the Canadian Revolving Commitment of
such Canadian Facility Lender. 
In addition, no Canadian Revolving Loans shall be incurred at any time
if after giving effect thereto the Canadian Facility Borrowers would be
required to prepay Canadian Revolving Loans in accordance with section
7.2(c).  The Obligations of the
Canadian Facility Borrowers in respect of the Canadian Revolving Facility shall
be joint and several.

 

(d)           Domestic Term Loan Facility.  Loans to the Borrowers under the Domestic
Term Loan Facility (each a “Domestic Term Loan” and, collectively, the “Domestic Term Loans”)
(i) shall be made only by a Domestic Term Loan Lender, (ii) shall be advanced
on the Closing Date, (iii) shall only be incurred by the Domestic Facility
Borrowers (other than Genlyte Thomas), (iv) shall be made only in U.S. Dollars,
(v) except as otherwise provided, may, at the option of such Domestic Facility
Borrowers, be incurred and maintained as, or Converted into, Domestic Term
Loans which are either Domestic Prime Rate Loans or Eurodollar Loans, provided that all
Domestic Term Loans made or Converted as part of the

 

39

 

same Borrowing shall, unless otherwise specifically
provided herein, consist of Domestic Term Loans of the same Type; and (vi)
shall be repaid and prepaid in accordance with the provisions hereof.  The Obligations of the Domestic Facility Borrowers
(other than Genlyte Thomas) in respect of the Domestic Term Loan Facility shall
be joint and several.

 

(e)           Optional Increase in Domestic Revolving Commitments.  At any time, if no Default shall have
occurred and be continuing (or would result after giving effect thereto), the
Domestic Facility Borrowers may, if they so elect, increase the aggregate
amount of the Total Domestic Revolving Commitment (each such increase to be in
an aggregate amount that is an integral multiple of $5,000,000 and not less
than $10,000,000), either by designating a financial institution not
theretofore a Domestic Revolving Facility Lender to become a Domestic Revolving
Facility Lender (such designation to be effective only with the prior written
consent of the Domestic Administrative Agent, which consent will not be
unreasonably withheld or delayed, and only if such financial institution
accepts a Domestic Revolving Commitment in an aggregate amount that is an
integral multiple of $5,000,000 and not less than $10,000,000), or by agreeing
with an existing Domestic Revolving Facility Lender that such Lender’s Domestic
Revolving Commitment shall be increased. 
Upon execution and delivery by the Borrowers and such Domestic Revolving
Facility Lender or other financial institution of an instrument (a “Domestic Revolving Commitment
Acceptance”) in form reasonably satisfactory to the Domestic
Administrative Agent, such existing Domestic Revolving Facility Lender shall
have a Domestic Revolving Commitment as therein set forth or such other
financial institution shall become a Domestic Revolving Facility Lender with a
Domestic Revolving Commitment as therein set forth and all the rights and
obligations of a Domestic Revolving Facility Lender with such a Domestic
Revolving Commitment hereunder; provided:

 

(i)            that the Borrowers
shall provide prompt notice of such increase to the Domestic Administrative
Agent, who shall promptly notify the Domestic Revolving Facility Lenders;

 

(ii)           that the Borrowers
shall have delivered to the Domestic Administrative Agent a copy of the
Domestic Revolving Commitment Acceptance;

 

(iii)          that the sum of (A) the
amount of such increase, (B) the amount of all other increases in the aggregate
amount of the Domestic Revolving Commitments pursuant to this section 2.1(e)
since the date of this Agreement, and (C) the then Dollar-equivalent amount of
all increases in the aggregate amount of the Canadian Revolving Commitments
pursuant to section 2.1(f) since the date of this Agreement (or
occurring at the same time as such increase), does not exceed $50,000,000;

 

(iv)          that, before and after
giving effect to such increase, the representations and warranties of the
Borrowers contained in Section 9 of this Agreement shall be true and
correct; and

 

(v)           that the Domestic Administrative
Agent shall have received such evidence (including an opinion of Borrowers’
counsel) as it may reasonably request to confirm the

 

40

 

Borrowers’ due authorization of the transactions
contemplated by this section 2.1(e) and the validity and
enforceability of the obligations of the Borrowers resulting therefrom.

 

On the date of any such
increase, the Borrowers shall be deemed to have represented to the
Administrative Agents and the Lenders that the conditions set forth in clauses
(i) through (v) above have been satisfied.

 

Upon any increase in the
aggregate amount of the Domestic Revolving Commitments pursuant to this section 2.1(e):

 

(x)            within five Business
Days, in the case of any Domestic Prime Rate Loans then outstanding, and at the
end of the then current Interest Period with respect thereto, in the case of
any Eurodollar Loans then outstanding, the Domestic Facility Borrowers shall
prepay such Loans in their entirety and, to the extent the Domestic Facility
Borrowers elect to do so and subject to the conditions specified in section
8.2, the Domestic Facility Borrowers shall reborrow Loans from the Domestic
Revolving Facility Lenders in proportion to their respective Commitments after
giving effect to such increase, until such time as all outstanding Loans are
held by the Domestic Revolving Facility Lenders in such proportion; and

 

(y)           each existing Domestic
Revolving Facility Lender whose Commitment has not increased pursuant to this section 2.1(e)
(each, a “Non-Increasing
Domestic Revolving Facility Lender”) shall be deemed, without
further action by any party hereto, to have sold to each Domestic Revolving
Facility Lender whose Domestic Revolving Commitment has been assumed or
increased under this section 2.1(e) (each, an “Increased Commitment Domestic Revolving Facility Lender”),
and each Increased Commitment Domestic Revolving Facility Lender shall be
deemed, without further action by any party hereto, to have purchased from each
Non-Increasing Domestic Revolving Facility Lender, a participation (on the
terms specified in section 2.5 and section 3.4 respectively) in
each Swing Line Revolving Loan and each Domestic Facility Letter of Credit
Outstanding in which such Non-Increasing Domestic Revolving Facility Lender has
acquired a participation in an amount equal to such Increased Commitment
Domestic Revolving Facility Lender’s Domestic Revolving Facility Percentage
thereof, until such time as all Domestic Facility Letter of Credit Exposures
and Swing Line Exposures are held by the Domestic Revolving Facility Lenders in
proportion to their respective Domestic Revolving Commitments after giving
effect to such increase.

 

(f)            Optional Increase in Canadian Revolving Commitments.  At any time, if no Default shall have
occurred and be continuing (or would result after giving effect thereto), the
Canadian Facility Borrowers may, if they so elect, increase the aggregate
amount of the Total Canadian Revolving Commitment (each such increase to be in
an aggregate amount that is an integral multiple of CDN$5,000,000 and not less
than CDN$10,000,000), either by designating a financial institution not
theretofore a Canadian Facility Lender to become a Canadian Facility Lender
(such designation to be effective only with the prior written consent of the
Canadian Administrative Agent, which consent will not be unreasonably

 

41

 

withheld or delayed, and only if such financial
institution accepts a Canadian Revolving Commitment in an aggregate amount that
is an integral multiple of CDN$5,000,000 and not less than CDN$10,000,000), or
by agreeing with an existing Canadian Facility Lender that such Lender’s
Canadian Revolving Commitment shall be increased.  Upon execution and delivery by the Borrowers and such Canadian
Facility Lender or other financial institution of an instrument (a “Canadian Revolving Commitment
Acceptance”) in form reasonably satisfactory to the Canadian
Administrative Agent, such existing Canadian Facility Lender shall have a
Canadian Revolving Commitment as therein set forth or such other financial
institution shall become a Canadian Facility Lender with a Canadian Revolving
Commitment as therein set forth and all the rights and obligations of a
Canadian Facility Lender with such a Canadian Revolving Commitment hereunder; provided:

 

(i)            that the Borrowers
shall provide prompt notice of such increase to the Canadian Administrative
Agent, who shall promptly notify the Canadian Facility Lenders;

 

(ii)           that the Borrowers
shall have delivered to the Canadian Administrative Agent a copy of the
Canadian Revolving Commitment Acceptance;

 

(iii)          that the sum of (A) the
Dollar-equivalent amount of such increase, (B) the then Dollar-equivalent
amount of all other increases in the aggregate amount of the Canadian Revolving
Commitments pursuant to this section 2.1(f) since the date of this
Agreement, and (C) the amount of all increases in the aggregate amount of the
Domestic Revolving Commitments pursuant to section 2.1(e) since the
date of this Agreement (or occurring at the same time as such increase), does
not exceed $50,000,000;

 

(iv)          that, before and after
giving effect to such increase, the representations and warranties of the
Borrowers contained in Section 9 of this Agreement shall be true and
correct; and

 

(v)           that the Canadian
Administrative Agent shall have received such evidence (including an opinion of
Borrowers’ counsel) as it may reasonably request to confirm the Borrowers’ due
authorization of the transactions contemplated by this section 2.1(f)
and the validity and enforceability of the obligations of the Borrowers
resulting therefrom.

 

On the date of any such
increase, the Borrowers shall be deemed to have represented to the
Administrative Agents and the Lenders that the conditions set forth in clauses
(i) through (v) above have been satisfied.

 

Upon any increase in the
aggregate amount of the Canadian Revolving Commitments pursuant to this section 2.1(f):

 

(x)            within five Business
Days, in the case of any Canadian Prime Rate Loans then outstanding, and at the
end of the then current Interest Period with respect thereto, in the case of
any CDOR Loans then outstanding, the Canadian Facility Borrowers shall prepay
such Loans in their entirety and, to the extent the Canadian Facility Borrowers
elect to do so and subject to the conditions specified in section 8.2,

 

42

 

the Canadian Facility Borrowers shall reborrow Loans
from the Canadian Facility Lenders in proportion to their respective
Commitments after giving effect to such increase, until such time as all
outstanding Loans are held by the Canadian Facility Lenders in such proportion;
and

 

(y)           each existing Canadian
Facility Lender whose Commitment has not increased pursuant to this section 2.1(f)
(each, a “Non-Increasing
Canadian Facility Lender”) shall be deemed, without further
action by any party hereto, to have sold to each Canadian Facility Lender whose
Canadian Revolving Commitment has been assumed or increased under this section 2.1(f)
(each, an “Increased Commitment
Canadian Facility Lender”), and each Increased Commitment
Canadian Facility Lender shall be deemed, without further action by any party
hereto, to have purchased from each Non-Increasing Canadian Facility Lender, a
participation (on the terms specified in section 4.4) in each Canadian
Facility Letter of Credit Outstanding in which such Non-Increasing Canadian
Facility Lender has acquired a participation in an amount equal to such
Increased Commitment Canadian Facility Lender’s Canadian Revolving Facility
Percentage thereof, until such time as all Canadian Facility Letter of Credit
Exposures are held by the Canadian Facility Lenders in proportion to their
respective Canadian Revolving Commitments after giving effect to such increase.

 

2.2.         Minimum
Borrowing Amounts, etc.; Pro Rata Borrowings.  (a) The aggregate principal amount of each
Borrowing by the Borrowers shall not be less than the Minimum Borrowing
Amount.  More than one Borrowing may be
incurred by the Borrowers on any day, provided that (i) if there are two or more Borrowings on
a single day in respect to the same Class of Loans which consist of Eurodollar
Loans, each such Borrowing shall have a different initial Interest Period, (ii)
if there are two or more Borrowings on a single day under the Canadian
Revolving Facility which consist of CDOR Loans, each such Borrowing shall have
a different initial Interest Period, (iii) only one Borrowing under the Swing
Line Revolving Facility may be made on any single day, (iv) at no time shall
there be more than eight Borrowings in the aggregate under the Domestic
Revolving Facility and the Domestic Term Loan Facility consisting of Eurodollar
Loans outstanding hereunder, and (v) at no time shall there be more than eight
Borrowings in the aggregate under the Canadian Revolving Facility consisting of
CDOR Loans and Eurodollar Loans outstanding hereunder.

 

(b)           All
Borrowings under a Facility shall be made by the Lenders having Commitments
under such Facility, if any, pro rata on the basis of their respective Commitments
under such Facility. It is understood that no Lender shall be responsible for
any default by any other Lender in its obligation to make Loans hereunder and
that each Lender shall be obligated to make the Loans provided to be made by it
hereunder, regardless of the failure of any other Lender to fulfill its
Commitment hereunder.

 

2.3.         Procedures
for Borrowing.  (a) Notice
of Borrowing.  Whenever a
Borrower desires to incur Loans (and the Domestic Term Loans shall, subject to
the terms and conditions of this Agreement, be incurred on the Closing Date),
it shall give the Domestic Administrative Agent in the case of a Domestic
Revolving Loan or a Swing Line Revolving Loan, or the Canadian

 

43

 

Administrative Agent, in the case of a Canadian Revolving Loan, in each
case at its respective Notice Office,

 

(i)            Borrowings under the Domestic Revolving
Facility:  in the case of any
Borrowing under the Domestic Revolving Facility of (1) Eurodollar Loans to be
made hereunder, prior to 12:00 noon (local time at its Notice Office), at least
three Business Days’ prior written or telephonic notice thereof (in the case of
telephonic notice, promptly confirmed in writing if so requested by the
Domestic Administrative Agent); or (2) Domestic Prime Rate Loans to be made
hereunder, prior to 12:00 noon (local time at its Notice Office), at least same
Business Day’s prior written or telephonic notice thereof (in the case of
telephonic notice, promptly confirmed in writing if so requested by the
Domestic Administrative Agent), or

 

(ii)           Borrowings under the Swing Line
Revolving Facility:  in the
case of any Borrowing under the Swing Line Revolving Facility, prior to 2:00
P.M. (local time at its Notice Office), at least same Business Day’s prior
written or telephonic notice thereof (in the case of telephonic notice,
promptly confirmed in writing if so requested by the Domestic Administrative
Agent), or

 

(iii)          Borrowings under the Canadian Revolving
Facility:  in the case of any
Borrowing under the Canadian Revolving Facility (A) denominated in Canadian
Dollars of (1) CDOR Loans to be made hereunder, prior to 12:00 noon (local time
at its Notice Office), at least three Business Days’ prior written or
telephonic notice thereof (in the case of telephonic notice, promptly confirmed
in writing if so requested by the Canadian Administrative Agent); or (2)
Canadian Prime Rate Loans to be made hereunder, prior to 10:00 A.M. (local time
at its Notice Office), at least same Business Day’s prior written or telephonic
notice thereof (in the case of telephonic notice, promptly confirmed in writing
if so requested by the Canadian Administrative Agent) and (B) denominated in
Dollars of (1) Eurodollar Loans to be made hereunder, prior to 12:00 noon
(local time at its Notice Office), at least three Business Days’ prior written
or telephonic notice thereof (in the case of telephonic notice, promptly
confirmed in writing if so requested by the Canadian Administrative Agent); or
(2) Domestic Prime Rate Loans to be made hereunder, prior to 10:00 A.M. (local
time at its Notice Office), at least same Business Day’s prior written or
telephonic notice thereof (in the case of telephonic notice, promptly confirmed
in writing if so requested by the Canadian Administrative Agent), or

 

(iv)          Borrowings under the Domestic Term Loan
Facility:  in the case of any
Borrowing under the Domestic Term Loan Facility of (1) Eurodollar Loans to be
made hereunder, prior to 12:00 noon (local time at its Notice Office), at least
three Business Days’ prior written or telephonic notice thereof (in the case of
telephonic notice, promptly confirmed in writing if so requested by the
Domestic Administrative Agent); or (2) Domestic Prime Rate Loans to be made
hereunder, prior to 12:00 noon (local time at its Notice Office), at least same
Business Day’s prior written or telephonic notice thereof (in the case of
telephonic notice, promptly confirmed in writing if so requested by the Domestic
Administrative Agent).

 

44

 

Each such notice (each such notice, a “Notice of Borrowing”) shall (if requested by
the applicable Administrative Agent to be confirmed in writing), be
substantially in the form of Exhibit B-1, and in any event shall be
irrevocable and shall specify: (i) the Facility under which the Borrowing is to
be incurred and the Borrower incurring the Loan; (ii) the aggregate principal
amount of the Loans to be made pursuant to such Borrowing; (iii) the date of
the Borrowing (which shall be a Business Day); (iv) whether the Borrowing shall
consist of Domestic Prime Rate Loans, Flex Eurodollar Loans, Eurodollar Loans,
Canadian Prime Rate Loans or CDOR Loans; (v) if the requested Borrowing consists
of Eurodollar Loans or CDOR Loans, the Interest Period to be initially
applicable thereto, and (vi) if the requested Borrowing is under the Canadian
Revolving Facility, the currency 
(Canadian Dollars or Dollars) in which such Borrowing is to be denominated.  If the applicable Borrower fails to specify
in a Notice of Borrowing the Interest Period for any Eurodollar Loans or CDOR
Loans, such Interest Period shall be deemed to be one month; and if the
applicable Canadian Facility Borrower fails to specify in a Notice of Borrowing
the currency, such Borrowing shall be denominated in Canadian Dollars.  The applicable Administrative Agent shall
promptly give each Lender which has a Commitment under any applicable Facility
written notice (or telephonic notice promptly confirmed in writing) of each
proposed Borrowing under the applicable Facility, of such Lender’s
proportionate share thereof and of the other matters covered by the Notice of
Borrowing relating thereto.

 

(b)           Actions by
Administrative Agents on Telephone Notice.  Without in any way limiting the obligation of the Borrowers to
confirm in writing any telephonic notice permitted to be given hereunder, the
Administrative Agents may act prior to receipt of written confirmation without
liability upon the basis of such telephonic notice believed by the
Administrative Agents in good faith to be from an Authorized Officer of the
Borrower entitled to give telephonic notices under this Agreement on behalf of
that Borrower. In each such case, the Administrative Agents’ record of the
terms of such telephonic notice shall be conclusive absent manifest error.

 

2.4.         Disbursement
of Funds. 
(a) No later than 2:00 P.M. (local time at the Payment Office) on
the date specified in each Notice of Borrowing, each Lender with a Commitment
under the Facility under which any Borrowing pursuant to such Notice of
Borrowing is to be made will make available its pro rata share, if any, of each Borrowing
under such Facility requested to be made on such date in the manner provided
below.  All amounts shall be made
available to the Domestic Administrative Agent in U.S. Dollars, except in the
case of Canadian Revolving Loans, in which case the amounts shall be made
available to the Canadian Administrative Agent in, as elected by the Canadian
Borrowers pursuant to the provisions of this Agreement, Canadian Dollars or
Dollars, in each case in immediately available funds at the Payment Office and
the Domestic Administrative Agent or Canadian Administrative Agent, as the case
may be, promptly will make available to the Borrower making the request by
depositing to their account at the Payment Office (or such other account(s) as
designated by such Borrower in accordance with section 2.4(c)) the
aggregate of the amounts so made available in the type of funds received.  Unless the applicable Administrative Agent
shall have been notified by any Lender prior to the date of Borrowing that such
Lender does not intend to make available to the applicable Administrative Agent
its portion of the Borrowing or Borrowings to be made on such date, such
Administrative Agent may assume that such Lender has made such amount available
to the Administrative Agent on such date of Borrowing, and such Administrative
Agent, in reliance upon such assumption, may (in its sole discretion and
without any obligation to do so) make available to the Borrower a corresponding

 

45

 

amount.  If such corresponding
amount is not in fact made available to the applicable Administrative Agent by
such Lender and such Administrative Agent has made available same to a
Borrower, such Administrative Agent shall be entitled to recover such
corresponding amount from such Lender. 
If such Lender does not pay such corresponding amount forthwith upon the
applicable Administrative Agent’s demand therefor, such Administrative Agent
shall promptly notify the applicable Borrower, and such Borrower shall
immediately pay such corresponding amount to the applicable Administrative
Agent.  The Domestic Administrative
Agent or the Canadian Administrative Agent, as the case may be, shall also be
entitled to recover from such Lender or the applicable Borrower, as the case
may be, interest on such corresponding amount in respect of each day from the
date such corresponding amount was made available by such Administrative Agent
to such Borrower to the date such corresponding amount is recovered by such
Administrative Agent, at a rate per annum equal to (x) if paid by such Lender,
the overnight Federal Funds Effective Rate in the case of any Loan denominated
in Dollars, or in the case of any Loan denominated in Canadian Dollars, at the
weighted average overnight or weekend borrowing rate for immediately available
and freely transferable funds denominated in Canadian Dollars which is offered
to the Canadian Administrative Agent in the international markets, or (y) if
paid by a Borrower, the then applicable rate of interest, calculated in
accordance with section 2.8, for the respective Loans (but without any
requirement to pay any amounts in respect thereof pursuant to section 2.11).

 

(b)           Nothing
herein and no subsequent termination of Commitments pursuant to section 6.1
or 6.2 shall be deemed to relieve any Lender from its obligation to
fulfill its commitments hereunder and in existence from time to time or to
prejudice any rights which any Borrower may have against any Lender as a result
of any default by such Lender hereunder.

 

(c)           Whenever
a Borrower desires that proceeds of a Borrowing be deposited into an account
other than such Borrower’s account at the Payment Office as contemplated by the
second sentence of section 2.4(a) (which other account shall be an
account of a Credit Party), it shall give the Domestic Administrative Agent in
the case of a Domestic Revolving Loan, a Domestic Term Loan or a Swing Line
Revolving Loan, or the Canadian Administrative Agent, in the case of a Canadian
Revolving Loan, in each case at its respective Notice Office, prior written
notice of such other account into which such Borrower desires for such proceeds
to be deposited, specifying such other information as the applicable
Administrative Agent may request; provided, however, that (i) any such proceeds so
deposited into such other account shall, for the purposes of such Borrower’s
liability therefore be deemed to have been advanced directly to such Borrower
and (ii) no such deposit into such other account shall in any way affect, limit
or otherwise modify such Borrower’s obligation to repay such Borrowings in
accordance with this Agreement and the applicable Notes.

 

2.5.         Refunding of, or
Participation in, Swing Line Revolving Loans.  (a) If any Event of Default exists, the
Swing Line Lender may, in its sole and absolute discretion, direct that the
Swing Line Revolving Loans owing to it be refunded by delivering a notice to
such effect to the Domestic Administrative Agent, specifying the aggregate
principal amount thereof (a “Notice of Swing Line Refunding”). .Promptly upon receipt
of a Notice of Swing Line Refunding, the Domestic Administrative Agent shall
give notice of the contents thereof to the Domestic Revolving Facility Lenders
and, unless an Event of Default specified in section 12.1(g) in respect
of a Borrower has occurred, also to the Domestic Facility Borrowers. Each such
Notice of Swing Line Refunding shall be deemed to constitute delivery by the
Domestic Facility Borrowers of a Notice of Borrowing

 

46

 

requesting Domestic Revolving Loans consisting of Domestic Prime Rate
Loans in the amount of the Swing Line Revolving Loans to which it relates. Each
Domestic Revolving Facility Lender (including the Swing Line Lender, in its
capacity as a Domestic Revolving Facility Lender) hereby unconditionally agrees
(notwithstanding that any of the conditions specified in section 8.2
hereof or elsewhere in this Agreement shall not have been satisfied, but
subject to the provisions of paragraph (b) below) to make a Domestic Revolving
Loan to the applicable Borrower in an amount equal to such Domestic Revolving
Facility Lender’s Domestic Revolving Facility Percentage of the aggregate
amount of the Swing Line Revolving Loans to which such Notice of Swing Line
Refunding relates.  Each such Domestic
Revolving Facility Lender shall make the amount of such Domestic Revolving Loan
available to the Domestic Administrative Agent in immediately available funds
at its Payment Office not later than 2:00 P.M. (local time at the Payment
Office), if such notice is received by such Domestic Revolving Facility Lender
prior to 11:00 A.M. (local time at its Domestic Lending Office), or not later
than 2:00 P.M. (local time at the Payment Office) on the next Business Day, if
such notice is received by such Domestic Revolving Facility Lender after such
time. The proceeds of such Domestic Revolving Loans shall be made immediately
available to the Swing Line Lender and applied by it to repay the principal
amount of the Swing Line Revolving Loans to which such Notice of Swing Line
Refunding related.  Each Domestic
Facility Borrower irrevocably and unconditionally agree that, notwithstanding
anything to the contrary contained in this Agreement, Domestic Revolving Loans
made as herein provided in response to a Notice of Swing Line Refunding shall
constitute Domestic Revolving Loans hereunder consisting of Domestic Prime Rate
Loans.

 

(b)           If
prior to the time a Domestic Revolving Loan would otherwise have been made as
provided above as a consequence of a Notice of Swing Line Refunding, any of the
events specified in section 12.1(g) shall have occurred in respect of a
Borrower or if one or more of the Domestic Revolving Facility Lenders shall
determine that it is legally prohibited from making a Domestic Revolving Loan
under such circumstances, each Domestic Revolving Facility Lender (other than
the Swing Line Lender), or each Domestic Revolving Facility Lender (other than
the Swing Line Lender) so prohibited, as the case may be, shall, on the date
such Domestic Revolving Loan would have been made by it (the “Purchase Date”),
purchase an undivided participating interest in the outstanding Swing Line
Revolving Loans to which such Notice of Swing Line Refunding related, in an
amount (the “Swing Line Participation
Amount”) equal to such Domestic Revolving Facility Lender’s
Domestic Revolving Facility Percentage of such Swing Line Revolving Loans. On
the Purchase Date, each such Domestic Revolving Facility Lender or each such
Domestic Revolving Facility Lender so prohibited, as the case may be, shall pay
to the Swing Line Lender, in immediately available funds, such Domestic
Revolving Facility Lender’s Swing Line Participation Amount, and promptly upon
receipt thereof the Swing Line Lender shall, if requested by such other
Domestic Revolving Facility Lender, deliver to such Domestic Revolving Facility
Lender a participation certificate, dated the date of the Swing Line Lender’s
receipt of the funds from, and evidencing, such Domestic Revolving Facility
Lender’s participating interest in such Swing Line Revolving Loans and its
Swing Line Participation Amount in respect thereof. If any amount required to
be paid by a Lender to the Swing Line Lender pursuant to the above provisions
in respect of any Swing Line Participation Amount is not paid on the date such
payment is due, such Lender shall pay to the Swing Line Lender on demand
interest on the amount not so paid at the overnight Federal Funds Effective
Rate from the due date until such amount is paid in full.

 

47

 

(c)           Whenever,
at any time after the Swing Line Lender has received from any other Domestic
Revolving Facility Lender such Lender’s Swing Line Participation Amount, the
Swing Line Lender receives any payment from or on behalf of the Domestic
Facility Borrowers on account of the related Swing Line Revolving Loans, the
Swing Line Lender will promptly distribute to such Domestic Revolving Facility
Lender its Domestic Revolving Facility Percentage of such payment on account of
its Swing Line Participation Amount (appropriately adjusted, in the case of
interest payments, to reflect the period of time during which such Domestic
Revolving Facility Lender’s participating interest was outstanding and funded);
provided, however,
that in the event such payment received by the Swing Line Lender is required to
be returned, such Domestic Revolving Facility Lender will return to the Swing
Line Lender any portion thereof previously distributed to it by the Swing Line
Lender.

 

(d)           Each
Domestic Revolving Facility Lender’s obligation to make Domestic Revolving
Loans and/or to purchase participations in connection with a Notice of Swing
Line Refunding (which shall in all events be within such Domestic Revolving
Facility Lender’s Unutilized Domestic Revolving Commitment) shall be subject to
the conditions that:

 

(i)            such Domestic
Revolving Facility Lender shall have received a Notice of Swing Line Refunding
complying with the provisions hereof, and

 

(ii)           at the time the Swing
Line Revolving Loans which are the subject of such Notice of Swing Line
Refunding were made, the Swing Line Lender had no actual written notice from
another Lender that an Event of Default had occurred and was continuing,

 

but otherwise shall be absolute and unconditional, shall be solely for
the benefit of the Swing Line Lender, and shall not be affected by any
circumstance, including, without limitation, (A) any set-off, counterclaim,
recoupment, defense or other right which such Domestic Revolving Facility Lender
may have against any other Lender, a Borrower, or any other person, may have
against any Lender or other person, as the case may be, for any reason
whatsoever; (B) the occurrence or continuance of a Default or Event of Default;
(C) any event or circumstance involving a Material Adverse Effect upon any
Borrower; (D) any breach of any Credit Document by any party thereto; or (E)
any other circumstance, happening or event, whether or not similar to any of
the foregoing.

 

2.6.         Notes and
Loan Accounts.  (a) Forms of
Notes.  The Borrowers’
obligations to pay the principal of, and interest on, the Loans by each Lender
shall be evidenced (i) if Domestic Revolving Loans, by a promissory note of the
Domestic Facility Borrowers substantially in the form of Exhibit A-1
with blanks appropriately completed in conformity herewith (each a “Domestic Revolving Note”
and, collectively, the “Domestic Revolving Notes”), (ii) if Swing Line Revolving
Loans, by a promissory note of the Domestic Facility Borrowers substantially in
the form of Exhibit A-2 with blanks appropriately completed in
conformity herewith (the “Swing Line Revolving Note”), (iii) if Canadian Revolving
Loans, by a promissory note of the Canadian Facility Borrowers substantially in
the form of Exhibit A-3 with blanks appropriately completed in
conformity herewith (each a “Canadian Revolving Note” and, collectively, the “Canadian Revolving Notes”),
and (iv) if Domestic Term Loans, by a promissory note of the Domestic Facility
Borrowers (other than Genlyte Thomas) substantially in the form of Exhibit
A-4 with blanks appropriately completed in conformity herewith (each a “Domestic Term Loan Note”
and, collectively, the “Domestic Term Loan Notes”).

 

48

 

In furtherance of the provisions of section 15.23 below, and for
the avoidance of doubt, a Foreign Borrower only shall be required to execute
and deliver a Note evidencing the Loans actually advanced to such Foreign
Borrower (or other Foreign Borrowers of the same country) and in no event,
shall a Foreign Borrower execute a Note evidencing any obligations in respect
of Loans advanced to any Domestic Facility Borrowers.

 

(b)           Domestic
Revolving Notes.  The
Domestic Revolving Note issued to by a Domestic Revolving Facility Lender
shall:  (i) be executed only by the
Domestic Facility Borrowers; (ii) be payable to the order of such Domestic
Revolving Facility Lender and be dated on or prior to the date the first Loan
evidenced thereby is made; (iii) be in a stated principal amount equal to the
Domestic Revolving Commitment of such Domestic Revolving Facility Lender and be
payable in the principal amount of Domestic Revolving Loans evidenced thereby;
(iv) mature on the Maturity Date; (v) bear interest as provided in section
2.8 in respect of the Domestic Prime Rate Loans and Eurodollar Loans, as
the case may be, evidenced thereby; (vi) be subject to mandatory prepayment as
provided in section 7.2; and (vii) be entitled to the benefits of this
Agreement and the other Credit Documents.

 

(c)           Swing Line
Revolving Note.  The Swing
Line Revolving Note issued to the Swing Line Lender shall:  (i) be executed only by the Domestic
Facility Borrowers; (ii) be payable to the order the Swing Line Lender and be
dated on or prior to the date the first Loan evidenced thereby is made; (iii)
be in a stated principal amount equal to the Swing Line Revolving Commitment of
the Swing Line Lender and be payable in the principal amount of Swing Line
Revolving Loans evidenced thereby; (iv) mature on the Maturity Date; (v) bear
interest as provided in section 2.8 in respect of the Domestic Prime
Rate Loans and Flex Eurodollar Loans, as the case may be, evidenced thereby;
(vi) be subject to mandatory prepayment as provided in section 7.2; and
(vii) be entitled to the benefits of this Agreement and the other Credit
Documents.

 

(d)           Canadian
Revolving Notes.  The
Canadian Revolving Note issued to a Canadian Facility Lender shall:  (i) be executed only by the Canadian
Facility Borrowers; (ii) be payable to the order of such Canadian Facility
Lender and be dated on or prior to the date the first Loan evidenced thereby is
made; (iii) be in a stated principal amount equal to the Canadian Revolving
Commitment of such Canadian Facility Lender and be payable in the principal
amount of Canadian Revolving Loans evidenced thereby; (iv) mature on the
Maturity Date; (v) bear interest as provided in section 2.8 in respect
of the Canadian Prime Rate Loans and CDOR Loans, as the case may be, evidenced
thereby; (vi) be subject to mandatory prepayment as provided in section 7.2;
and (vii) be entitled to the benefits of this Agreement and the other Credit
Documents.

 

(e)           Domestic
Term Loan Notes.  The
Domestic Term Loan Note issued to a Domestic Term Loan Facility Lender
shall:  (i) be executed only by the
Domestic Facility Borrowers (other than Genlyte Thomas); (ii) be payable to the
order of such Domestic Term Loan Facility Lender and be dated on or prior to
the date the Loan evidenced thereby is made; (iii) be in a stated principal amount
equal to the Domestic Term Loan Commitment of such Domestic Term Loan Facility
Lender and be payable in twenty (20) consecutive quarterly installments of the
principal of the Domestic Term Loan evidenced thereby on the last Business Day
of each January, April, July and October, commencing October 29, 2004, the
first nineteen (19) of which each shall be in an amount equal to five percent
(5%) of such stated principal amount, and the last of which, on the Maturity
Date, shall be in the amount of all remaining principal of the Domestic Term
Loan evidenced

 

49

 

thereby; (iv) bear interest as provided in section 2.8 in
respect of the Domestic Prime Rate Loans and Eurodollar Loans, as the case may
be, evidenced thereby; (v) be subject to mandatory prepayment as provided in section
7.2; and (vi) be entitled to the benefits of this Agreement and the other
Credit Documents.

 

(f)            Loan
Accounts of Lenders.  Each
Lender shall maintain in accordance with its usual practice an account or
accounts evidencing the respective indebtedness of each of the Borrowers to
such Lender resulting from each Loan made by such Lender, including the amounts
of principal and interest payable and paid to such Lender from time to time hereunder.

 

(g)           Loan
Accounts of Administrative Agents. 
The Domestic Administrative Agent with respect to the Domestic Revolving
Loans, Domestic Term Loans and Swing Line Revolving Loans, and the Canadian
Administrative Agent with respect to Canadian Revolving Loans, in each case
shall maintain accounts in which it shall record (i) the amount of each Loan
made hereunder, the Type thereof, the particular Facility under which such Loan
was made, and the Interest Period or maturity date and applicable interest rate
if such Loan is a Eurodollar Loan or a CDOR Loan, (ii) the amount of any
principal due and payable or to become due and payable from the Borrowers to
each Lender hereunder, and (iii) the amount of any sum received by such
Administrative Agent hereunder for the account of the Lenders and each Lender’s
share thereof.

 

(h)           Effect of
Loan Accounts, etc.  The
entries made in the accounts maintained pursuant to sections 2.6(f) and (g)
shall be prima facie
evidence of the existence and amounts of the obligations recorded therein; provided, that the
failure of any Lender or an Administrative Agent to maintain such accounts or
any error therein shall not in any manner affect the obligation of the
Borrowers to repay or prepay the Loans in accordance with the terms of this
Agreement.

 

(i)            Endorsements
of Amounts on Notes Prior to Transfer.  Each Lender will, prior to any transfer of any of the Notes
issued to it by the Borrowers, endorse on the reverse side thereof or the grid
attached thereto the outstanding principal amount of Loans evidenced
thereby.  Failure to make any such
notation or any error in any such notation shall not affect the Borrowers’
obligations in respect of such Loans.

 

2.7.         Conversions
of Domestic Revolving Loans; Canadian Revolving Loans and Domestic Term Loans.  The Borrowers shall have the option to
Convert on any Business Day all or a portion at least equal to the applicable
Minimum Borrowing Amount of the outstanding principal amount of their (i)
Domestic Revolving Loans of one Type owing by them into a Borrowing or
Borrowings pursuant to the Domestic Revolving Facility of another Type of Loans
which can be made pursuant to such Facility, (ii) Canadian Revolving Loans of
one Type owing by them into a Borrowing or Borrowings pursuant to the Canadian
Revolving Facility of another Type of Loans which can be made pursuant to such
Facility and (iii) Domestic Term Loans of one Type owing by them into a
Borrowing or Borrowings pursuant to the Domestic Term Loan Facility of another
Type of Loans which can be made pursuant to such Facility, provided that:

 

(a)           no partial Conversion
of a Borrowing of Eurodollar Loans or CDOR Loans, as applicable, shall reduce
the outstanding principal amount of the Eurodollar Loans or

 

50

 

CDOR Loans, as applicable, made pursuant to such
Borrowing to less than the Minimum Borrowing Amount applicable thereto;

 

(b)           any Conversion of
Eurodollar Loans into Domestic Prime Rate Loans and any Conversion of CDOR
Loans into Canadian Prime Rate Loans shall, in each case, be made on, and only
on, the last day of an Interest Period for such Eurodollar Loans or CDOR Loans,
as the case may be;

 

(c)           Domestic Prime Rate
Loans may only be Converted into Eurodollar Loans, and Canadian Prime Rate
Loans may only be Converted into CDOR Loans, if no Default under section
12.1(a) or Event of Default is in existence on the date of the Conversion;

 

(d)           Domestic Prime Rate
Loans may not be Converted into Eurodollar Loans, and Canadian Prime Rate Loans
may not be Converted into CDOR Loans, during any period when such Conversion is
not permitted under section 2.10; and

 

(e)           Borrowings of
Eurodollar Loans and CDOR Loans resulting from this section 2.7 shall
conform to the requirements of section 2.2(a).

 

Each such Conversion shall be effected by the applicable Borrower
giving the Domestic Administrative Agent, in the case of Domestic Revolving
Loans or Domestic Term Loans , or the Canadian Administrative Agent, in the
case of Canadian Revolving Loans, at its Notice Office, prior to 12:00 noon
(local time at such Notice Office), at least three Business Days’, in the case
of Conversion into a Eurodollar Loan or a CDOR Loan (or prior to 12:00 noon
(local time at such Notice Office) same Business Day’s, in the case of a
Conversion into Domestic Prime Rate Loans or Canadian Prime Rate Loans), prior
written notice (or telephonic notice promptly confirmed in writing if so
requested by the applicable Administrative Agent) (each a “Notice of Conversion”), substantially in the
form of Exhibit B-2, specifying the Loans to be so Converted, the Type
of Loans to be Converted into and, if to be Converted into a Borrowing of
Eurodollar Loans or CDOR Loans, the Interest Period to be initially applicable
thereto. The Domestic Administrative Agent, in the case of Domestic Revolving
Loans and Domestic Term Loans, and the Canadian Administrative Agent, in the
case of Canadian Revolving Loans, shall give each Domestic Revolving Facility
Lender, Domestic Term Loan Lender or Canadian Facility Lender, as the case may
be, prompt notice of any such proposed Conversion affecting any of its
Loans.  For the avoidance of doubt, the
prepayment or repayment of (i) any Domestic Revolving Loans out of the proceeds
of other Domestic Revolving Loans by the Domestic Facility Borrowers is not
considered a Conversion of Domestic Revolving Loans into other Domestic
Revolving Loans and (ii) any Canadian Revolving Loans out of the proceeds of
other Canadian Revolving Loans by the Canadian Facility Borrowers is not
considered a Conversion of Canadian Revolving Loans into other Canadian
Revolving Loans.

 

2.8.         Interest.  (a) Interest Rate for Domestic Prime Rate Loans.  During such periods as a Domestic Revolving
Loan, a Swing Line Revolving Loan, a Domestic Term Loan or a Canadian Revolving
Loan is a Domestic Prime Rate Loan, the unpaid principal amount thereof shall
bear interest at a fluctuating rate per annum which shall at all times be equal
to the Domestic Prime Rate in effect from time to time.

 

51

 

(b)           Interest
Rate for Eurodollar Loans. 
During such periods as a Domestic Revolving Loan, a Domestic Term Loan
or a Canadian Revolving Loan is a Eurodollar Loan, the unpaid principal amount
thereof shall bear interest at a rate per annum which shall at all times during
any Interest Period applicable thereto be the relevant Eurodollar Rate for such
Interest Period, plus
the Applicable Eurodollar Margin in effect from time to time.

 

(c)           Interest
Rate for Canadian Prime Rate Loans. 
During such periods as a Canadian Revolving Loan is a Canadian Prime
Rate Loan, the unpaid principal amount thereof shall bear interest at a
fluctuating rate per annum which shall at all times be equal to the Canadian
Prime Rate in effect from time to time.

 

(d)           Interest
Rate for CDOR Loans.  During
such periods as a Canadian Revolving Loan is a CDOR Loan, the unpaid principal
amount of each CDOR Loan shall bear interest at the rate per annum which shall
at all times during any Interest Period applicable thereto be equal to the CDOR
Rate for such Interest Period, plus the Applicable Eurodollar Margin in effect from
time to time.

 

(e)           Interest
Rate for Flex Eurodollar Loans. 
During such periods as a Swing Line Revolving Loan is a Flex Eurodollar
Loan, the unpaid principal amount of each Flex Eurodollar Loan shall bear
interest a fluctuating rate per annum which shall at all times during the
one-month Interest Period applicable thereto be equal to the Flex Eurodollar
Rate as determined by the Domestic Administrative Agent plus the Applicable Eurodollar Margin in
effect from time to time.

 

(f)            Default
Interest.  Notwithstanding
the above provisions, if a Default under section 12.1(a) or an Event of
Default is in existence, all outstanding amounts of principal and, to the
extent permitted by law, all overdue interest, in respect of each Loan shall
bear interest, payable on demand, at a fluctuating rate per annum equal to two
percent (2%) per annum above the interest rate which is or would be applicable
from time to time pursuant to sections 2.8(a) in respect of Domestic
Prime Rate Loans.  If any amount (other
than the principal of and interest on the Loans) payable by the Borrowers under
the Credit Documents is not paid when due, such amount shall bear interest,
payable on demand, at a fluctuating rate per annum equal to two percent (2%)
per annum above the interest rate which would be applicable under section
2.8(a) to Domestic Prime Rate Loans in effect from time to time.

 

(g)           Accrual and
Payment of Interest. 
Interest shall accrue from and including the date of any Borrowing to
but excluding the date of any prepayment or repayment thereof and shall be
payable on the Maturity Date and:

 

(i)            in the case of any
Swing Line Revolving Loan, (A) monthly in arrears on the last Business Day of
each calendar month, and (B) on any repayment or prepayment (on the amount
repaid or prepaid), at maturity (whether by acceleration or otherwise) and,
after such maturity, on demand;

 

(ii)           in the case of any
Domestic Revolving Loan, (A) which is a Domestic Prime Rate Loan, monthly in
arrears on the last Business Day of each calendar month, (B) which is a
Eurodollar Loan, on the last day of each Interest Period applicable thereto
and, in the case

 

52

 

of an Interest Period in excess of three months, on
the dates which are successively three months after the commencement of such
Interest Period, and (C) on any repayment, prepayment or Conversion (on the
amount repaid, prepaid or Converted), at maturity (whether by acceleration or
otherwise) and, after such maturity, on demand;

 

(iii)          in the case of any
Canadian Revolving Loan, (A) which is a Canadian Prime Rate Loan or a Domestic
Prime Rate Loan, monthly in arrears on the last Business Day of each calendar
month, (B) which is a CDOR Loan or a Eurodollar Loan, on the last day of each
Interest Period applicable thereto and, in the case of an Interest Period in
excess of three months, on the dates which are successively three months after
the commencement of such Interest Period, and (C) on any repayment, prepayment
or Conversion (on the amount repaid, prepaid or Converted), at maturity
(whether by acceleration or otherwise) and, after such maturity, on demand; and

 

(iv)          in the case of any
Domestic Term Loan, (A) which is a Domestic Prime Rate Loan, monthly in arrears
on the last Business Day of each calendar month, (B) which is a Eurodollar
Loan, on the last day of each Interest Period applicable thereto and, in the
case of an Interest Period in excess of three months, on the dates which are
successively three months after the commencement of such Interest Period, and
(C) on any repayment, prepayment or Conversion (on the amount repaid, prepaid
or Converted), at maturity (whether by acceleration or otherwise) and, after
such maturity, on demand.

 

(h)           Computations
of Interest.  All
computations of interest hereunder shall be made in accordance with

section 15.7(b).

 

(i)            Information
as to Interest Rates.  The
Domestic Administrative Agent, in the case of Borrowings under the Domestic
Revolving Facility, the Domestic Term Loan Facility or the Swing Line Revolving
Facility, or the Canadian Administrative Agent, in the case of Borrowings under
the Canadian Revolving Facility, as the case may be, upon determining the
interest rate for any Borrowing shall promptly notify the affected Borrowers
and the affected Lenders thereof. 
Subject to any maximum or minimum interest rate limitation specified herein
or by applicable law, the Flex Eurodollar Rate shall change automatically
without notice to the Borrower immediately on each Business Day with each
change in the Flex Eurodollar Rate, with any change thereto effective as of the
opening of business on the day of the change. 
If the Domestic Administrative Agent or the Canadian Administrative
Agent, as the case may be, is unable to determine the Eurodollar Rate for any
Borrowing of Eurodollar Loans or the Flex Eurodollar Rate for any Borrowing of
Flex Eurodollar Loans by reference to the Telerate Screen or other information
provided by a service organization referred to in clause (i) of the definitions
of the term Eurodollar Rate and Flex Eurodollar Rate, as the case may be, then
each Reference Bank agrees to furnish the Domestic Administrative Agent or the
Canadian Administrative Agent, as the case may be, timely information for the
purpose of determining the Eurodollar Rate or the Flex Eurodollar Rate, as the
case may be, for any such Borrowing.  If
any one or more of the Reference Banks shall not timely furnish such
information, the Domestic Administrative Agent or the Canadian Administrative
Agent, as the case may be, shall determine the Eurodollar Rate or the Flex
Eurodollar Rate, as the case may be, on the basis of timely information furnished
by the remaining Reference Banks.

 

53

 

(j)            Interest
Margins.  As used herein, the
term “Applicable Eurodollar
Margin”, as applied to any Domestic Revolving Loan or Domestic
Term Loan which is a Eurodollar Loan, any Swing Line Revolving Loan which is a
Flex Eurodollar Loan, any Canadian Revolving Loan which is a CDOR Loan or a
Eurodollar Loan, or any portion of a Domestic Term Loan which is a Eurodollar
Loan, means the particular rate per annum determined by the Domestic
Administrative Agent in accordance with the Pricing Grid Table which appears
below, based on the ratio of Consolidated Total Debt to Consolidated EBITDA and
such Pricing Grid Table, and the following provisions:

 

(i)            Initially, until
changed hereunder in accordance with the following provisions, the Applicable
Eurodollar Margin will be (A) 70.00 Basis Points per annum for Domestic
Revolving Loans, Swing Line Revolving Loans and Canadian Revolving Loans and
(B) 87.50 Basis Points per annum for Domestic Term Loans.

 

(ii)           Commencing with the
fiscal quarter of the Borrowers ended on or nearest to September 30, 2004, and
continuing with each fiscal quarter thereafter, the Domestic Administrative
Agent will determine the Applicable Eurodollar Margin in accordance with the
Pricing Grid Table, based on the ratio of (x) Consolidated Total Debt as of the
end of such fiscal quarter, to (y) Consolidated EBITDA for the Testing Period
ended on the last day of such fiscal quarter, and identified in such Pricing
Grid Table; provided, however,
that in computing Consolidated EBITDA for each of the Testing Periods ending on
or prior to June 30, 2005, Consolidated EBITDA shall be determined as if
Genlyte Group had owned, directly or indirectly, 100% of, as the case may be,
the capital stock or the membership interests in Genlyte Thomas and GTG
Intangible during all of such Testing Period. 
Changes in the Applicable Eurodollar Margin based upon changes in such
ratio shall become effective on the first day of the month following the
receipt by the Domestic Administrative Agent pursuant to section 10.1(a)
or (b), as applicable, of the financial statements of the Borrowers in
respect of the period ending with such fiscal quarter, accompanied by the
applicable certificate and calculations referred to in section 10.1(c),
demonstrating the computation of such ratio, based upon the ratio in effect at
the end of the applicable period covered (in whole or in part) by such
financial statements.

 

(iii)          Notwithstanding the
above provisions, during any period when (A) the Borrowers have failed to
timely deliver their consolidated financial statements referred to in section
10.1(a) or (b), accompanied by the applicable certificate and
calculations referred to in section 10.1(c), (B) a Default under section
12.1(a) has occurred and is continuing, or (C) an Event of Default has
occurred and is continuing, without waiving or limiting any other right or
remedy of the Lenders in respect thereof, the Applicable Eurodollar Margin
shall each be the highest rate per annum indicated therefor in the Pricing Grid
Table, regardless of the ratio of Consolidated Total Debt to Consolidated
EBITDA at such time.

 

(iv)          The Domestic
Administrative Agent will promptly provide notice of its determinations hereunder
to the Canadian Administrative Agent, the Borrowers and the Lenders.  Any such determination by such
Administrative Agent pursuant to this section 2.8(j) shall be conclusive
and binding absent manifest error.

 

54

 

PRICING GRID TABLE

(expressed in Basis Points)

 

	
  Ratio of

  Consolidated Total Debt

  To

  Consolidated EBITDA

  	
   

  	
  Applicable

  Eurodollar

  Margin for

  Domestic

  Revolving Loans,

  Swing Line

  Revolving Loans,

  and Canadian

  Revolving Loans

  	
   

  	
  Applicable

  Facility Fee

  Rate

  	
   

  	
  Applicable

  Eurodollar

  Margin for

  Domestic

  Term Loans

  	
   

  
	
  > 3.00 to
  1.00

  	
   

  	
  100.00

  	
   

  	
  25.00

  	
   

  	
  125.00

  	
   

  
	
  > 2.50 to
  1.00 and £ 3.00 to 1.00

  	
   

  	
  80.00

  	
   

  	
  20.00

  	
   

  	
  100.00

  	
   

  
	
  > 2.00 to
  1.00 and £ 2.50 to 1.00

  	
   

  	
  70.00

  	
   

  	
  17.50

  	
   

  	
  87.50

  	
   

  
	
  > 1.50 to
  1.00 and £ 2.00 to 1.00

  	
   

  	
  60.00

  	
   

  	
  15.00

  	
   

  	
  75.00

  	
   

  
	
  £ 1.50 to 1.00

  	
   

  	
  50.00

  	
   

  	
  12.50

  	
   

  	
  62.50

  	
   

  

 

2.9.         Selection
and Continuation of Interest Periods.  (a) A Borrower shall have the right

 

(i)            at the time that it
gives a Notice of Borrowing or Notice of Conversion in respect of the making of
or Conversion into a Borrowing of (A) Domestic Revolving Loans consisting of
Eurodollar Loans, (B) Canadian Revolving Loans consisting of CDOR Loans or
Eurodollar Loans, or (C) any portion of Domestic Term Loans consisting of
Eurodollar Loans, to select in such Notice the Interest Period to be applicable
to such Borrowing, and

 

(ii)           prior to 11:00 A.M.
(local time at the Notice Office) on the third Business Day prior to the
expiration of an Interest Period applicable to a Borrowing of Domestic
Revolving Loans consisting of Eurodollar Loans or any portion of Domestic Term
Loans consisting of Eurodollar Loans, to elect by giving the Domestic
Administrative Agent written or telephonic notice (in the case of telephonic
notice, promptly confirmed in writing if so requested by the Domestic
Administrative Agent) to Continue all or a portion consisting

 

55

 

of at least the Minimum Borrowing Amount of the
principal amount of such Loans as one or more Borrowings of Eurodollar Loans
and to select the Interest Period to be applicable to any such Borrowing, and

 

(iii)          prior to 11:00 A.M.
(local time at the Notice Office) on the third Business Day prior to the
expiration of an Interest Period applicable to a Borrowing of Canadian
Revolving Loans consisting of CDOR Loans or Eurodollar Loans, to elect by
giving the Canadian Administrative Agent written or telephonic notice (in the
case of telephonic notice, promptly confirmed in writing if so requested by the
Canadian Administrative Agent) to Continue all or a portion consisting of at
least the Minimum Borrowing Amount of the principal amount of such Loans as one
or more Borrowings of, as the case may be, CDOR Loans or Eurodollar Loans and
to select the Interest Period to be applicable to any such Borrowing (any such
notice referred to in this section 2.9(a)(ii) or 2.9(a)(iii), a “Notice of Continuation”),

 

which Interest Period shall, at the option of the applicable Borrowers,
be a one, two, three or six month period; provided, that notwithstanding anything to the contrary
contained above, the Borrower’s right to select an Interest Period or to effect
any Continuation shall be subject to the applicable provisions of section
2.10 and to the following:

 

(i)            the initial Interest
Period for any Borrowing of Eurodollar Loans or CDOR Loans shall commence on
the date of such Borrowing (the date of a Borrowing resulting from a Conversion
or Continuation shall be the date of such Conversion or Continuation) and each
Interest Period occurring thereafter in respect of such Borrowing shall
commence on the day on which the next preceding Interest Period expires;

 

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

 

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

 

(iv)          no Interest Period for
any Eurodollar Loan or any CDOR Loan may be selected which would end after the
Maturity Date;

 

(v)           each Borrowing of
Eurodollar Loans and CDOR Loans resulting from any Continuation shall be in at
least the Minimum Borrowing Amount applicable thereto;

 

(vi)          no Interest Period may
be elected at any time when a Default under section 12.1(a) or an Event
of Default is then in existence unless the Required Domestic Revolving Facility
Lenders or the Required Canadian Facility Lenders, as applicable, otherwise
agree; and

 

56

 

(vii)         A Borrowing of any Class
may not be Converted to or Continued as a Borrowing of Eurodollar Loans or CDOR
Loans if after giving effect thereto (i) the Interest Period therefor would
commence before and end after a date on which any principal of the Loans of
such Class is scheduled to be repaid and (ii) the sum of the aggregate
principal amount of outstanding Borrowings of Eurodollar Loans or CDOR Loans of
such Class with Interest Periods ending on or prior to such scheduled repayment
date, plus
the aggregate principal amount of outstanding Borrowings of, as applicable,
Domestic Prime Rate Loans or Canadian Prime Rate Loans of such Class would be less
than the aggregate principal amount of Loans of such Class required to be
repaid on such scheduled repayment date.

 

(b)           If
upon the expiration of any Interest Period the applicable Borrower has failed
to (or may not) elect a new Interest Period to be applicable to the respective
Borrowing of Eurodollar Loans or CDOR Loans as provided above, such Borrower
shall be deemed to have elected to Convert such Borrowing of Eurodollar Loans
to Domestic Prime Rate Loans and such Borrowing of CDOR Loans to Canadian Prime
Rate Loans, effective as of the expiration date of such current Interest
Period.  If the applicable Borrower
fails to specify in a Notice of Continuation the Interest Period for any
Eurodollar Loans or CDOR Loans which will be Continued as Eurodollar Loans or
CDOR Loans, as the case may be, such Interest Period shall be deemed to be one
month.

 

2.10.       Increased Costs,
Illegality, etc.  (a) In the
event that (1) in the case of clause (i) below, the Administrative Agents or
(2) in the case of clauses (ii) and (iii) below, any Lender, shall have
determined on a reasonable basis (which determination shall, absent manifest
error, be final and conclusive and binding upon all parties hereto):

 

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

 

(ii)           at any time, that such
Lender shall incur increased costs or reductions in the amounts received or
receivable hereunder in an amount which such Lender reasonably deems material
with respect to any Eurodollar Loans, Flex Eurodollar Loans or CDOR Loans
(other than any increased cost or reduction in the amount received or
receivable resulting from the imposition of or a change in the rate of taxes or
similar charges) because of (x) any change since the Effective Date in any
applicable law, governmental rule, regulation, guideline, order or request
(whether or not having the force of law), or in the interpretation or
administration thereof and including the introduction of any new law or
governmental rule, regulation, guideline, order or request (such as, for
example, but not limited to, a change in official reserve requirements, but, in
all events, excluding reserves includable in the Eurodollar Rate and the Flex
Eurodollar Rate pursuant to the definitions thereof) and/or (y) other
circumstances adversely affecting the interbank Eurodollar market with respect
to Eurodollar Loans and Flex Eurodollar Loans, the interbank Canadian Dollar
market with respect to CDOR Loans, or the position of such Lenders in such
markets; or

 

57

 

(iii)          at any time, that the
making or continuance of any Eurodollar Loan, Flex Eurodollar Loan or CDOR Loan
has become unlawful by compliance by such Domestic Revolving Facility Lender,
Domestic Term Loan Lender or Canadian Facility Lender, as applicable, in good
faith with any change since the Effective Date in any law, governmental rule,
regulation, guideline or order, or the interpretation or application thereof,
or would conflict with any thereof not having the force of law but with which
such Lender customarily complies or has become impracticable as a result of a
contingency occurring after the Effective Date which materially adversely
affects the interbank Eurodollar market or the interbank Canadian Dollar
market;

 

then, and in any such
event, such Lender (or the applicable Administrative Agent in the case of
clause (i) above) shall (x) on or promptly following such date or time and (y)
within 10 Business Days of the date on which such event no longer exists give
notice (by telephone confirmed in writing) to the affected Borrowers and to the
Administrative Agents of such determination (which notice the Administrative
Agents shall promptly transmit to each of the other applicable Lenders).  Thereafter (x) in the case of clause
(i) above, affected Eurodollar Loans, Flex Eurodollar Loans or affected CDOR
Loans, as the case may be, shall no longer be available until such time as the
applicable Administrative Agent notifies the affected Borrowers and the
affected Lenders that the circumstances giving rise to such notice by such
Administrative Agent no longer exist, and any Notice of Borrowing or Notice of
Conversion, as applicable, given by the Borrowers with respect to affected
Eurodollar Loans, affected Flex Eurodollar Loans, or affected CDOR Loans, as
applicable, which have not yet been incurred or converted shall be deemed
rescinded by such Borrowers or, in the case of a Notice of Borrowing, shall, at
the option of the affected Borrowers, be deemed converted into a Notice of
Borrowing for Domestic Prime Rate Loans (in the case of affected Eurodollar
Loans and Flex Eurodollar Loans) or Canadian Prime Rate Loans (in the case of
affected CDOR Loans) to be made on the date of Borrowing contained in such
Notice of Borrowing, (y) in the case of clause (ii) above, the affected
Borrowers shall, for so long as such increased cost or reduction in amount
shall exist, pay to such Domestic Revolving Facility Lender, Domestic Term Loan
Lender, Swing Line Lender or the Canadian Facility Lender, as applicable, upon
written demand therefor, such additional amounts (in the form of an increased
rate of, or a different method of calculating, interest or otherwise as such
Lender shall determine) as shall be required to compensate such Lender, for
such increased costs or reductions in amounts receivable hereunder (a written
notice as to the additional amounts owed to such Lender, showing the basis for
the calculation thereof submitted to the affected Borrowers by such Lender
shall, absent manifest error, be final and conclusive and binding upon all
parties hereto) and (z) in the case of clause (iii) above, the affected
Borrowers shall take one of the actions specified in section 2.10(b) as
promptly as possible and, in any event, within the time period required by law.

 

(b)           At
any time that any Eurodollar Loan, any Flex Eurodollar Loan or any CDOR Loan is
affected by the circumstances described in section 2.10(a)(ii) or (iii),
the affected Borrowers may (and in the case of a Eurodollar Loan, Flex
Eurodollar Loan or CDOR Loan affected pursuant to section 2.10(a)(iii)
the affected Borrowers shall) either (i) if the affected Eurodollar Loan,
the affected Flex Eurodollar Loan, or the affected CDOR Loan, as applicable, is
then being made pursuant to a Borrowing, by giving the Domestic Administrative
Agent or Canadian Administrative Agent, as applicable, telephonic notice (confirmed
promptly in writing) thereof on the same date that

 

58

 

the Borrowers were notified by a Lender pursuant to section
2.10(a)(ii) or (iii), cancel said affected Borrowing, convert the
related Notice of Borrowing into one requesting a Borrowing of Domestic Prime
Rate Loans (in the case of affected Eurodollar Loans and affected Flex
Eurodollar Loans) or Canadian Prime Rate Loan (in the case of affected CDOR
Loans) or require the affected Lender to make its requested Loan as a Domestic
Prime Rate Loan (in the case of affected Eurodollar Loans or affected Flex
Eurodollar Loans) or Canadian Prime Rate Loan (in the case of affected CDOR
Loans), as the case may be, or (ii) if the affected Eurodollar Loan, the affected
Flex Eurodollar Loan, or the affected CDOR Loan, as applicable, is then
outstanding, upon at least one Business Day’s notice (or same Business Day’s
notice in the case of an affected Flex Eurodollar Loan) to the Domestic
Administrative Agent or the Canadian Administrative Agent, as applicable,
require the affected Lender to convert each such Eurodollar Loan or Flex
Eurodollar Loan, as applicable, into a Domestic Prime Rate Loan or each such
CDOR Loan into a Canadian Prime Rate Loan, provided that if more than one Domestic Revolving
Facility Lender or Domestic Term Loan Lender (in the case of Eurodollar Loans)
or more than one Canadian Facility Lender (in the case of CDOR Loans or
Eurodollar Loans) is affected at any time, then all affected Domestic Revolving
Facility Lenders and Domestic Term Loan Lenders and all affected Canadian
Facility Lenders, as the case may be, must be treated the same pursuant to this
section 2.10(b).

 

(c)           If
any Lender shall have determined that after the Effective Date, the adoption of
any applicable law, rule or regulation regarding capital adequacy, or any
change therein, or any change in the interpretation or administration thereof
by any governmental authority, central bank or comparable agency charged by law
with the interpretation or administration thereof, or compliance by such Lender
or its parent corporation with any request or directive regarding capital
adequacy (whether or not having the force of law) of any such authority,
central bank, or comparable agency, in each case made subsequent to the
Effective Date, has or would have the effect of reducing by an amount
reasonably deemed by such Lender to be material to the rate of return on such
Lender’s or its parent corporation’s capital or assets as a consequence of such
Lender’s commitments or obligations hereunder to a level below that which such
Lender or its parent corporation could have achieved but for such adoption,
effectiveness, change or compliance (taking into consideration such Lender’s or
its parent corporation’s policies with respect to capital adequacy), then from
time to time, within five days after demand by such Lender (with a copy to the
Administrative Agents), the Borrowers shall pay to such Lender such additional
amount or amounts as will compensate such Lender or its parent corporation for
such reduction.  Each Lender, upon
determining in good faith that any additional amounts will be payable pursuant
to this section 2.10(c), will give prompt written notice thereof to the
Borrowers, which notice shall set forth, in reasonable detail, the basis of the
calculation of such additional amounts, although the failure to give any such
notice shall not release or diminish any of the Borrowers’ obligations to pay
additional amounts pursuant to this section 2.10(c) upon the subsequent
receipt of such notice.

 

2.11.       Breakage
Compensation. 
Each Borrower shall compensate each applicable Lender, upon its written
request (which request shall set forth in reasonable detail the basis for
requesting and the method of calculating such compensation), for all reasonable
losses, expenses and liabilities (including, without limitation, any loss,
expense or liability incurred by reason of the liquidation or reemployment of
deposits or other funds required by such Lender to fund its Eurodollar Loans or
CDOR Loans) which such Lender may sustain: 
(i) if for any reason (other than a default by such Lender or such
Administrative Agent), a Borrowing of Eurodollar Loans or CDOR Loans, as

 

59

 

applicable, does not occur on a date specified therefor in a Notice of
Borrowing or Notice of Conversion (whether or not rescinded or withdrawn by the
Borrowers or deemed rescinded or withdrawn pursuant to section 2.10);
(ii) if any repayment, prepayment, Conversion or Continuation of any of its
Eurodollar Loans or CDOR Loans occurs on a date which is not the last day of an
Interest Period applicable thereto; (iii) if any prepayment of any of its
Eurodollar Loans or CDOR Loans is not made on any date specified in a notice of
prepayment given by a Borrower; or (iv) as a consequence of (x) any other
default by a Borrower to repay its Eurodollar Loans or CDOR Loans when required
by the terms of this Agreement or (y) an election made pursuant to section
2.10(b).  Such loss, cost, expense
and liability to any Lender shall be deemed to include an amount determined by
such Lender to be the excess, if any, of (i) the amount of interest which would
have accrued on the principal amount of such Loan had such event not occurred,
at the interest rate that would have been applicable to such Loan, for the
period from the date of such event to the last day of the then current Interest
Period therefor (or, in the case of a failure to effect a Borrowing, Conversion
or Continuation, for the period that would have been the Interest Period for
such Loan), over (ii) the amount of interest which would accrue on such
principal amount for such period at the interest rate which such Lender would
bid were it to bid, at the commencement of such period, for Dollar deposits of
a comparable amount and period from other banks in the London interbank market
(with respect to Eurodollar Loans) or the Canadian Dollar interbank market
(with respect to CDOR Loans). A certificate of any Lender setting forth any
amount or amounts that such Lender is entitled to receive pursuant to this
section shall be delivered to the Borrowers and shall be conclusive absent
manifest error.  Each Borrower shall pay
such Lender the amount shown as due on any such request within ten days after
receipt thereof.

 

2.12.       Same Indebtedness; Other
References

 

(a)           This
Agreement and the other Credit Documents shall not be deemed to provide for or
effect a novation or repayment and re-advance of any portion of the Indebtedness
under the Existing Credit Agreement now outstanding, it being the intention of
the Borrowers and the Lenders hereby that the Indebtedness owing under this
Agreement be and hereby is the same Indebtedness as that owing under the
Existing Credit Agreement immediately prior to the effectiveness hereof.  Without limiting the generality of the
foregoing, to the extent, if any, not paid prior to the effectiveness of this
Agreement, all accrued interest and fees owing under and pursuant to the
Existing Credit Agreement shall be due and payable in full on the date on which
they would have been due and payable pursuant to the Existing Credit Agreement.

 

(b)           Upon
the effectiveness of this Agreement, the Existing Credit Agreement shall be
deemed to have been amended and restated in its entirety and superseded by this
Agreement, and any references in any other Credit Document to the Existing
Credit Agreement shall be deemed to refer to this Agreement.

 

60

 

SECTION
3.         DOMESTIC FACILITY LETTERS OF CREDIT.

 

3.1.         Domestic Facility Letters of
Credit.  (a) Subject to and
upon the terms and conditions herein set forth, any Domestic Facility Borrower
may request a Letter of Credit Issuer at any time and from time to time on or
after the Closing Date and prior to the date that is 15 Business Days prior to
the Maturity Date to issue, for the account of that Borrower or any of its
Subsidiaries (other than the Receivables Facility Subsidiary) a Domestic
Facility Letter of Credit (the Borrower so requesting, a “Domestic Facility Letter of Credit Obligor”),
and in support of worker compensation, liability insurance, releases of
contract retention obligations, contract performance guarantee requirements and
other bonding obligations of a Domestic Facility Borrower or any Subsidiary
(other than the Receivables Facility Subsidiary) of that Borrower incurred in
the ordinary course of its business, and such other standby obligations of a
Domestic Facility Borrower and any Subsidiary (other than the Receivables
Facility Subsidiary) of that Borrower that are acceptable to the Letter of
Credit Issuer, and subject to and upon the terms and conditions herein set
forth, the Letter of Credit Issuer agrees to issue from time to time,
irrevocable standby letters of credit denominated and payable in Dollars in
such form as may be approved by such Letter of Credit Issuer and the Domestic
Administrative Agent (each such letter of credit, a “Domestic Facility Letter of Credit” and
collectively, the “Domestic Facility
Letters of Credit”).

 

(b)           Notwithstanding
the foregoing, (i) no Domestic Facility Letter of Credit shall be issued in the
Stated Amount of which, when added to the Domestic Facility Letter of Credit
Outstandings at such time, would exceed either (x) $50,000,000 or (y) when
added to the aggregate principal amount of all Domestic Revolving Loans and
Swing Line Revolving Loans then outstanding, an amount equal to the Total
Domestic Revolving Commitment at such time; (ii) no individual Domestic Facility
Letter of Credit shall be issued which has an initial Stated Amount less than
$100,000 unless such lesser Stated Amount is acceptable to the Letter of Credit
Issuer; and (iii) each Domestic Facility Letter of Credit shall have an expiry
date (including any renewal periods) occurring not later than the earlier of
(A) one year from the date of issuance thereof, unless a longer period is
approved by the relevant Letter of Credit Issuer and the Required Domestic
Revolving Facility Lenders, and (B) 15 Business Days prior to the Maturity
Date, in each case on terms acceptable to the Domestic Administrative Agent and
the Letter of Credit Issuer. In addition, no Domestic Facility Letter of Credit
shall be issued or increased in amount if after giving effect thereto the
Domestic Facility Borrowers would be required to prepay Domestic Revolving
Loans in accordance with section 7.2(a).

 

(c)           Notwithstanding
the foregoing, in the event a Lender Default exists with respect to a Domestic
Revolving Facility Lender, no Letter of Credit Issuer shall be required to
issue any Domestic Facility Letter of Credit unless either (i) such Letter of
Credit Issuer has entered into arrangements satisfactory to it and the
Borrowers to eliminate such Letter of Credit Issuer’s risk with respect to the
participation in Domestic Facility Letters of Credit of the Defaulting Lender
or Lenders, including by cash collateralizing such Defaulting Lender’s or
Lenders’ Domestic Revolving Facility Percentage of the Domestic Facility Letter
of Credit Outstandings; or (ii) the issuance of such Domestic Facility Letter
of Credit, taking into account the potential failure of such Defaulting Lender
or Lenders to risk participate therein, will not cause such Letter of Credit
Issuer to incur aggregate credit exposure hereunder with respect to Domestic
Revolving Loans and Domestic Facility Letter of Credit Outstandings in excess
of its Domestic Revolving Commitment, and the

 

61

 

Borrowers have undertaken, for the benefit of such Letter of Credit
Issuer, pursuant to an instrument satisfactory in form and substance to the
Letter of Credit Issuer, not to thereafter incur Loans or Domestic Facility
Letter of Credit Outstandings hereunder which would cause the Letter of Credit
Issuer to incur aggregate credit exposure hereunder with respect to Loans and
Domestic Facility Letter of Credit Outstandings in excess of its Domestic
Revolving Commitment.

 

(d)           Annex
III hereto contains a description of all Existing Letters of Credit
outstanding on, and to continue in effect after, the Closing Date that were
issued under the “Domestic Revolving Facility” of the Existing Credit
Agreement. Each such Existing Letter of Credit shall constitute a “Domestic
Facility Letter of Credit” for all purposes of this Agreement, issued, for
purposes of section 5.2(b), on the Closing Date (provided that any and
all fees accrued to the Closing Date in respect thereof pursuant to the
Existing Credit Agreement shall have been paid in full on or before the Closing
Date), and the Borrowers, the Administrative Agents and the applicable Lenders
hereby agree that, from and after such date, the terms of this Agreement shall
apply to such Existing Letters of Credit, superseding any other agreement theretofore
applicable to them to the extent inconsistent with the terms hereof.

 

3.2.         Domestic
Facility Letter of Credit Requests: Notices of Issuance.  (a) Whenever it desires that a Domestic
Facility Letter of Credit be issued, a Domestic Facility Borrower shall give
the Domestic Administrative Agent and the Letter of Credit Issuer written or
telephonic notice (in the case of telephonic notice, promptly confirmed in
writing if so requested by the Domestic Administrative Agent) which, if in the
form of written notice shall be substantially in the form of Exhibit B-3,
or transmit by electronic communication (if arrangements for doing so have been
approved by the Letter of Credit Issuer), prior to 12:00 noon (local time at
its Notice Office) at least three Business Days (or such shorter period as may
be acceptable to the relevant Letter of Credit Issuer) prior to the proposed
date of issuance (which shall be a Business Day) (each a “Domestic Facility Letter of Credit Request”),
which Domestic Facility Letter of Credit Request shall include such supporting
documents that such Letter of Credit Issuer customarily requires in connection
therewith (including, in the case of a Letter of Credit for an account party
other than the Domestic Facility Borrowers, an application for, and if
applicable a reimbursement agreement with respect to, such Letter of
Credit).  Any documents executed in
connection with the issuance of a Letter of Credit (whether a Domestic Facility
Letter of Credit or a Canadian Facility Letter of Credit), including the Letter
of Credit itself, are herein referred to as “Letter of Credit Documents”.  In the event of any inconsistency between
any of the terms or provisions of any Letter of Credit Document and the terms
and provisions of this Agreement respecting Domestic Facility Letters of
Credit, the terms and provisions of this Agreement shall control.  The Domestic Administrative Agent shall
promptly notify each Domestic Revolving Facility Lender of each Domestic
Facility Letter of Credit Request.

 

(b)           Each
Letter of Credit Issuer shall, on the date of each issuance of a Domestic
Facility Letter of Credit by it, give the Domestic Administrative Agent, each
applicable Lender and the applicable Borrower written notice of the issuance of
such Domestic Facility Letter of Credit, accompanied by a copy to the Domestic
Administrative Agent of the such Domestic Facility Letters of Credit issued by
it.  Each Letter of Credit Issuer shall
provide to the Domestic Administrative Agent a quarterly (or monthly if requested
by any applicable Lender) summary describing each Domestic Facility Letter of
Credit issued by such Letter of Credit Issuer and then outstanding and an

 

62

 

identification for the relevant period of the daily aggregate Domestic
Facility Letter of Credit Outstandings represented by Domestic Facility Letters
of Credit issued by such Letter of Credit Issuer.

 

3.3.         Agreement to
Repay Domestic Facility Letter of Credit Drawings.  (a) Each Domestic Facility Borrower hereby
agrees to reimburse (or cause any Domestic Facility Letter of Credit Obligor
for whose account a Domestic Facility Letter of Credit was issued to reimburse)
each Letter of Credit Issuer, by making payment directly to such Letter of
Credit Issuer in immediately available funds at the payment office of the
Letter of Credit Issuer, for any payment or disbursement made by the Letter of
Credit Issuer under any Domestic Facility Letter of Credit (each such amount so
paid or disbursed until reimbursed, an “Unpaid Domestic Facility Drawing”) immediately after,
and in any event on the date on which, such Letter of Credit Issuer notifies
such Borrower of such payment or disbursement (which notice to such Borrower
shall be delivered reasonably promptly after any such payment or disbursement),
such payment to be made in Dollars, with interest on the amount so paid or
disbursed by such Letter of Credit Issuer, to the extent not reimbursed prior
to 1:00 P.M. (local time at the payment office of the Letter of Credit Issuer)
on the date of such payment or disbursement, from and including the date paid
or disbursed to but not including the date such Letter of Credit Issuer is
reimbursed therefor at a rate per annum which shall be the rate then applicable
to Domestic Revolving Loans which are Domestic Prime Rate Loans (plus an
additional 2% per annum if not reimbursed by the Business Day after the date of
such payment or disbursement), any such interest also to be payable on demand.

 

(b)           Each
Domestic Facility Borrower’s obligation under this section 3.3 to
reimburse each Letter of Credit Issuer with respect to Unpaid Domestic Facility
Drawings (including, in each case, interest thereon) shall be absolute and
unconditional under any and all circumstances and irrespective of any setoff,
counterclaim or defense to payment which any Borrower or any other Domestic
Facility Letter of Credit Obligor may have or have had against the Letter of
Credit Issuer, the Administrative Agents, the Co-Lead Arrangers, the Co-Documentation
Agents or any Lender, including, without limitation, any defense based upon the
failure of any drawing under a Domestic Facility Letter of Credit to conform to
the terms of the Domestic Facility Letter of Credit or any non-application or
misapplication by the beneficiary of the proceeds of such drawing or upon any
draft, certificate or other document presented under the Domestic Facility
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;
provided, however,
that no Borrower shall be obligated to reimburse a Letter of Credit Issuer for
any wrongful payment made by such Letter of Credit Issuer under a Domestic
Facility Letter of Credit as a result of acts or omissions constituting willful
misconduct or gross negligence on the part of such Letter of Credit Issuer.

 

3.4.         Domestic
Facility Letter of Credit Participations.  (a) Immediately upon the issuance by a Letter of Credit Issuer of
any Domestic Facility Letter of Credit, such Letter of Credit Issuer shall be
deemed to have sold and transferred to each Domestic Revolving Facility Lender,
and each such Domestic Revolving Facility Lender (each a “Domestic Facility Participant”) shall be
deemed irrevocably and unconditionally to have purchased and received from such
Letter of Credit Issuer, without recourse or warranty, an undivided interest
and participation, to the extent of such Lender’s Domestic Revolving Facility
Percentage, in such Domestic Facility Letter of Credit, each substitute letter
of credit, each drawing made thereunder, the obligations of the Borrowers under
this

 

63

 

Agreement with respect thereto (although Letter of Credit Fees shall be
payable directly to the Domestic Administrative Agent for the account of the
Domestic Revolving Facility Lenders as provided in section 5.2(b) and
the Domestic Facility Participants shall have no right to receive any portion
of any fees of the nature contemplated by section 5.2(c)), the
obligations of any Domestic Facility Letter of Credit Obligor under any Letter
of Credit Documents pertaining thereto, and any security for, or guaranty
pertaining to, any of the foregoing. 
Upon any change in the Domestic Revolving Commitments of the Domestic
Revolving Facility Lenders pursuant to section 2.1(e) or 15.4(c),
it is hereby agreed that, with respect to all outstanding Domestic Facility
Letters of Credit and Unpaid Domestic Facility Drawings, there shall be an
automatic adjustment to the participations pursuant to this section 3.4
to reflect the new Domestic Revolving Facility Percentages of any Domestic
Revolving Facility Lender.

 

(b)           In
determining whether to pay under any Domestic Facility Letter of Credit, the Letter
of Credit Issuer shall not have any obligation relative to the Domestic
Facility Participants other than to determine that any documents required to be
delivered under such Domestic Facility Letter of Credit have been delivered and
that they appear to comply on their face with the requirements of such Domestic
Facility Letter of Credit. Any action taken or omitted to be taken by the
Letter of Credit Issuer under or in connection with any Domestic Facility
Letter of Credit if taken or omitted in the absence of gross negligence or
willful misconduct, shall not create for such Letter of Credit Issuer any
resulting liability.

 

(c)           In
the event that a Letter of Credit Issuer makes any payment under any Domestic
Facility Letter of Credit and the applicable Borrower shall not have reimbursed
(or caused any applicable Domestic Facility Letter of Credit Obligor to
reimburse) such amount in full to such Letter of Credit Issuer pursuant to section
3.3(a), such Letter of Credit Issuer shall promptly notify the Domestic
Administrative Agent, and the Domestic Administrative Agent shall promptly
notify each Domestic Facility Participant of such failure, and each Domestic
Facility Participant shall promptly and unconditionally pay to the Domestic
Administrative Agent for the account of such Letter of Credit Issuer, the
amount of such Domestic Facility Participant’s Domestic Revolving Facility
Percentage of such payment in U.S. Dollars and in same day funds, provided, however,
that no Domestic Facility Participant shall be obligated to pay to the Domestic
Administrative Agent its Domestic Revolving Facility Percentage of such
unreimbursed amount for any wrongful payment made by such Letter of Credit
Issuer under a Domestic Facility Letter of Credit as a result of acts or omissions
constituting willful misconduct or gross negligence on the part of the Letter
of Credit Issuer.  If the Domestic
Administrative Agent so notifies any Domestic Facility Participant required to
fund a payment under a Domestic Facility Letter of Credit prior to 11:00 A.M.
(local time at its Notice Office) on any Business Day, such Domestic Facility
Participant shall make available to the Domestic Administrative Agent for the
account of the relevant Letter of Credit Issuer such Domestic Facility Participant’s
Domestic Revolving Facility Percentage of the amount of such payment on such
Business Day in same day funds.  If and
to the extent such Domestic Facility Participant shall not have so made its
Domestic Revolving Facility Percentage of the amount of such payment available
to the Domestic Administrative Agent for the account of the relevant Letter of
Credit Issuer, such Domestic Facility Participant agrees to pay to the Domestic
Administrative Agent for the account of such Letter of Credit Issuer, forthwith
on demand such amount, together with interest thereon, for each day from such
date until the date such amount is paid to the Domestic Administrative Agent
for the account of such Letter of Credit Issuer at the Federal Funds Effective

 

64

 

Rate.  The failure of any
Domestic Facility Participant to make available to the Domestic Administrative
Agent for the account of the relevant Letter of Credit Issuer its Domestic
Revolving Facility Percentage of any payment under any Domestic Facility Letter
of Credit shall not relieve any other Domestic Facility Participant of its
obligation hereunder to make available to the Domestic Administrative Agent for
the account of such Letter of Credit Issuer its Domestic Revolving Facility
Percentage of any payment under any Domestic Facility Letter of Credit on the
date required, as specified above, but no Domestic Facility Participant shall
be responsible for the failure of any other Domestic Facility Participant to
make available to the Domestic Administrative Agent for the account of such
Letter of Credit Issuer such other Domestic Facility Participant’s Domestic
Revolving Facility Percentage of any such payment.

 

(d)           Whenever
a Letter of Credit Issuer receives a payment of a reimbursement obligation as
to which the Domestic Administrative Agent has received for the account of such
Letter of Credit Issuer any payments from the Domestic Facility Participants
pursuant to section 3.4(c) above, such Letter of Credit Issuer shall pay
to the Domestic Administrative Agent and the Domestic Administrative Agent
shall promptly pay to each Domestic Facility Participant which has paid its
Domestic Revolving Facility Percentage thereof, in U.S. Dollars and in same day
funds, an amount equal to such Domestic Facility Participant’s Domestic
Revolving Facility Percentage of the principal amount thereof and interest
thereon accruing after the purchase of the respective participations, as and to
the extent so received.

 

(e)           The
obligations of the Domestic Facility Participants to make payments to the
Domestic Administrative Agent for the account of each Letter of Credit Issuer
with respect to Domestic Facility Letters of Credit shall be irrevocable and
not subject to counterclaim, set-off or other defense or any other
qualification or exception whatsoever and shall be made in accordance with the
terms and conditions of this Agreement under all circumstances, including,
without limitation, any of the following circumstances:

 

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

 

(ii)           the existence of any
claim, set-off defense or other right which a Borrower may have at any time
against a beneficiary named in a Domestic Facility Letter of Credit, any transferee
of any Domestic Facility Letter of Credit (or any person for whom any such
transferee may be acting), either Administrative Agent, either Co-Lead
Arranger, either Co-Documentation Agent, any Letter of Credit Issuer, any
Lender, or other person, whether in connection with this Agreement, any
Domestic Facility Letter of Credit, the transactions contemplated herein or any
unrelated transactions (including any underlying transaction between a Borrower
and the beneficiary named in any such Domestic Facility Letter of Credit),
other than any claim which a Borrower may have against any applicable Letter of
Credit Issuer for gross negligence or willful misconduct of such Letter of
Credit Issuer in making payment under any applicable Domestic Facility Letter
of Credit;

 

(iii)          any draft, certificate
or other document presented under the Domestic Facility 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;

 

65

 

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

 

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

 

(f)            To
the extent the Letter of Credit Issuer is not indemnified by the Borrowers, the
Domestic Facility Participants will reimburse and indemnify the Letter of
Credit Issuer, in proportion to their respective Domestic Revolving Facility
Percentages, for and against any and all liabilities, obligations, losses,
damages, penalties, claims, actions, judgments, costs, expenses or
disbursements of whatsoever kind or nature which may be imposed on, asserted
against or incurred by the Letter of Credit Issuer in performing its respective
duties in any way related to or arising out of its issuance of Domestic
Facility Letters of Credit, provided that no Domestic Facility Participants shall be
liable for any portion of such liabilities, obligations, losses, damages, penalties,
claims, actions, judgments, costs, expenses or disbursements resulting from the
Letter of Credit Issuer’s gross negligence or willful misconduct.

 

3.5.         Increased Costs.  If after the Effective Date, the adoption of
any applicable law, rule or regulation, or any change therein, or any change in
the interpretation or administration thereof by any governmental authority,
central bank or comparable agency charged with the interpretation or
administration thereof, or compliance by any Letter of Credit Issuer or any
Domestic Revolving Facility Lender with any request or directive (whether or
not having the force of law) by any such authority, central bank or comparable
agency (in each case made subsequent to the Effective Date) shall either (i)
impose, modify or make applicable any reserve, deposit, capital adequacy or
similar requirement against Domestic Facility Letters of Credit issued by such
Letter of Credit Issuer or such Domestic Revolving Facility Lender’s
participation therein, or (ii) shall impose on such Letter of Credit Issuer or
any Domestic Revolving Facility Lender any other conditions affecting this
Agreement, any Domestic Facility Letter of Credit or such Lender’s
participation therein; and the result of any of the foregoing is to increase the
cost to such Letter of Credit Issuer or such Lender of issuing, maintaining or
participating in any Domestic Facility Letter of Credit, or to reduce the
amount of any sum received or receivable by such Letter of Credit Issuer or
such Lender hereunder (other than any increased cost or reduction in the amount
received or receivable resulting from the imposition of or a change in the rate
of taxes or similar charges), then, upon demand to the applicable Borrower by
such Letter of Credit Issuer or such Lender (a copy of which notice shall be
sent by such Letter of Credit Issuer or such Lender to the Domestic
Administrative Agent), the applicable Borrower shall pay to such Letter of
Credit Issuer or such Domestic Revolving Facility Lender such additional amount
or amounts as will compensate any such Letter of Credit Issuer or such Lender
for such increased cost or reduction.  A
certificate submitted to the applicable Borrower by the Letter of Credit Issuer
or any such Domestic Revolving Facility Lender, as the case may be (a copy of
which certificate shall be sent by the Letter of Credit Issuer or such Lender
to the Domestic Administrative Agent), setting forth the basis for the
determination of such additional amount or amounts necessary to compensate any
Letter of Credit Issuer or such Lender as aforesaid shall be conclusive and
binding on the Borrowers absent manifest error, although the failure to deliver
any such certificate shall not release or diminish any of such Borrower’s
obligations to pay additional amounts pursuant to this section 3.5.

 

66

 

SECTION
4.         CANADIAN FACILITY LETTERS OF CREDIT.

 

4.1.         Canadian
Facility Letters of Credit. 
(a) Subject to and upon the terms and conditions herein set forth, a
Canadian Facility Borrower may request a Letter of Credit Issuer at any time
and from time to time on or after the Closing Date and prior to the date that
is 15 Business Days prior to the Maturity Date to issue, for the account of
that Borrower or any of its Subsidiaries a Canadian Facility Letter of Credit
(the Borrower so requesting, a “Canadian Facility Letter of Credit Obligor”), and in
support of worker compensation, liability insurance, releases of contract
retention obligations, contract performance guarantee requirements and other
bonding obligations of a Canadian Facility Borrower or any of its Subsidiaries
incurred in the ordinary course of its business, and such other standby
obligations of a Canadian Facility Borrower and any of its Subsidiaries that are
acceptable to the Letter of Credit Issuer, and subject to and upon the terms
and conditions herein set forth, the Letter of Credit Issuer agrees to issue
from time to time, irrevocable standby letters of credit denominated and
payable in Canadian Dollars in such form as may be approved by such Letter of
Credit Issuer and the Canadian Administrative Agent (each such letter of
credit, a “Canadian Facility
Letter of Credit” and collectively, the “Canadian Facility Letters of Credit”).

 

(b)           Notwithstanding
the foregoing, (i) no Canadian Facility Letter of Credit shall be issued in the
Stated Amount of which, when added to the Canadian Facility Letter of Credit
Outstandings at such time, would exceed either (x) CDN$2,000,000 or (y) when
added to the aggregate principal amount of all Canadian Revolving Loans then
outstanding, an amount equal to the Total Canadian Revolving Commitment at such
time; (ii) no individual Canadian Facility Letter of Credit shall be issued
which has an initial Stated Amount less than CDN$100,000 unless such lesser
Stated Amount is acceptable to the Letter of Credit Issuer; and (iii) each
Canadian Facility Letter of Credit shall have an expiry date (including any
renewal periods) occurring not later than the earlier of (A) one year from the
date of issuance thereof, unless a longer period is approved by the relevant
Letter of Credit Issuer and the Required Canadian Facility Lenders, and (B) 15
Business Days prior to the Maturity Date, in each case on terms acceptable to
the Canadian Administrative Agent and the Letter of Credit Issuer. In addition,
no Canadian Facility Letter of Credit shall be issued or increased in amount if
after giving effect thereto the Borrowers would be required to prepay Canadian
Revolving Loans in accordance with section 7.2(c).

 

(c)           Notwithstanding
the foregoing, in the event a Lender Default exists with respect to a Canadian
Facility Lender, no Letter of Credit Issuer shall be required to issue any
Canadian Facility Letter of Credit unless either (i) such Letter of Credit
Issuer has entered into arrangements satisfactory to it and the Borrowers to
eliminate such Letter of Credit Issuer’s risk with respect to the participation
in Canadian Facility Letters of Credit of the Defaulting Lender or Lenders,
including by cash collateralizing such Defaulting Lender’s or Lenders’ Canadian
Revolving Facility Percentage of the Canadian Facility Letter of Credit
Outstandings; or (ii) the issuance of such Canadian Facility Letter of Credit,
taking into account the potential failure of such Defaulting Lender or Lenders
to risk participate therein, will not cause such Letter of Credit Issuer to
incur aggregate credit exposure hereunder with respect to Canadian Revolving
Loans and Canadian Facility Letter of Credit Outstandings in excess of its
Canadian Revolving Commitment, and the applicable Borrower has undertaken, for
the benefit of such Letter of Credit Issuer, pursuant to an instrument
satisfactory in

 

67

 

form and substance to the Letter of Credit Issuer, not to thereafter
incur Loans or Canadian Facility Letter of Credit Outstandings hereunder which
would cause the Letter of Credit Issuer to incur aggregate credit exposure
hereunder with respect to Loans and Canadian Facility Letter of Credit
Outstandings in excess of its Canadian Revolving Commitment.

 

(d)           Annex III hereto contains a description of all
Existing Letters of Credit outstanding on, and to continue in effect after, the
Closing Date that were issued under the “Canadian Revolving Facility” of the
Existing Credit Agreement.  Each such
Existing Letter of Credit shall constitute a “Canadian Facility Letter of
Credit” for all purposes of this Agreement, issued, for purposes of section
5.2(b), on the Closing Date (provided that any and all fees accrued to the
Closing Date in respect thereof pursuant to the Existing Credit Agreement shall
have been paid in full on or before the Closing Date), and the Borrowers, the
Administrative Agents and the applicable Lenders hereby agree that, from and
after such date, the terms of this Agreement shall apply to such Existing
Letters of Credit, superseding any other agreement theretofore applicable to
them to the extent inconsistent with the terms hereof.

 

4.2.         Canadian
Facility Letter of Credit Requests: Notices of Issuance.  (a) Whenever it desires that a Canadian
Facility Letter of Credit be issued, a Canadian Facility Borrower shall give
the Canadian Administrative Agent and the Letter of Credit Issuer written or
telephonic notice (in the case of telephonic notice, promptly confirmed in
writing if so requested by the Canadian Administrative Agent) which, if in the
form of written notice shall be substantially in the form of Exhibit B-4,
or transmit by electronic communication (if arrangements for doing so have been
approved by the Letter of Credit Issuer), prior to 12:00 noon (local time at
its Notice Office) at least three Business Days (or such shorter period as may
be acceptable to the relevant Letter of Credit Issuer) prior to the proposed
date of issuance (which shall be a Business Day) (each a “Canadian Facility Letter of Credit Request”),
which Canadian Facility Letter of Credit Request shall include such Letter of
Credit Documents that such Letter of Credit Issuer customarily requires in
connection therewith (including, in the case of a Canadian Facility Letter of
Credit for an account party other than the Canadian Facility Borrower, an
application for, and if applicable a reimbursement agreement with respect to,
such Canadian Facility Letter of Credit). 
In the event of any inconsistency between any of the terms or provisions
of any Letter of Credit Document and the terms and provisions of this Agreement
respecting Canadian Facility Letters of Credit, the terms and provisions of
this Agreement shall control.  The
Canadian Administrative Agent shall promptly notify each Canadian Facility
Lender of each Canadian Facility Letter of Credit Request.

 

(b)           Each
Letter of Credit Issuer shall, on the date of each issuance of a Canadian
Facility Letter of Credit by it, give the Canadian Administrative Agent, each
applicable Lender and the applicable Borrower written notice of the issuance of
such Canadian Facility Letter of Credit, accompanied by a copy to the Canadian
Administrative Agent of the such Canadian Facility Letters of Credit issued by
it.  Each Letter of Credit Issuer shall
provide to the Canadian Administrative Agent a quarterly (or monthly if
requested by any applicable Lender) summary describing each Canadian Facility
Letter of Credit issued by such Letter of Credit Issuer and then outstanding
and an identification for the relevant period of the daily aggregate Canadian
Facility Letter of Credit Outstandings represented by Canadian Facility Letters
of Credit issued by such Letter of Credit Issuer.

 

68

 

4.3.         Agreement to
Repay Canadian Facility Letter of Credit Drawings.  (a) Each Canadian Facility Borrower hereby
agrees to reimburse (or cause any Canadian Facility Letter of Credit Obligor
for whose account a Canadian Facility Letter of Credit was issued to reimburse)
each Letter of Credit Issuer, by making payment directly to such Letter of
Credit Issuer in immediately available funds at the payment office of the
Letter of Credit Issuer, for any payment or disbursement made by the Letter of
Credit Issuer under any Canadian Facility Letter of Credit (each such amount so
paid or disbursed until reimbursed, an “Unpaid Canadian Facility Drawing”) immediately after,
and in any event on the date on which, such Letter of Credit Issuer notifies
such Borrower of such payment or disbursement (which notice to such Borrower
shall be delivered reasonably promptly after any such payment or disbursement),
such payment to be made in Canadian Dollars, with interest on the amount so
paid or disbursed by such Letter of Credit Issuer, to the extent not reimbursed
prior to 1:00 P.M. (local time at the payment office of the Letter of Credit
Issuer) on the date of such payment or disbursement, from and including the
date paid or disbursed to but not including the date the Letter of Credit
Issuer is reimbursed therefor at a rate per annum which shall be the rate then
applicable to Canadian Revolving Loans which are Canadian Prime Rate Loans
(plus an additional 2% per annum if not reimbursed by the Business Day after
the date of such payment or disbursement), any such interest also to be payable
on demand.

 

(b)           Each
Canadian Facility Borrower’s obligation under this section 4.3 to
reimburse each Letter of Credit Issuer with respect to Unpaid Canadian Facility
Drawings (including, in each case, interest thereon) shall be absolute and
unconditional under any and all circumstances and irrespective of any setoff,
counterclaim or defense to payment which any Borrower or any other Canadian
Facility Letter of Credit Obligor may have or have had against the Letter of
Credit Issuer, the Administrative Agents, the Co-Lead Arrangers, the
Co-Documentation Agents or any Lender, including, without limitation, any
defense based upon the failure of any drawing under a Canadian Facility Letter
of Credit to conform to the terms of the Canadian Facility Letter of Credit or
any non-application or misapplication by the beneficiary of the proceeds of
such drawing or upon any draft, certificate or other document presented under
the Canadian Facility 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; provided, however, that no Borrower shall be obligated
to reimburse a Letter of Credit Issuer for any wrongful payment made by such
Letter of Credit Issuer under a Canadian Facility Letter of Credit as a result
of acts or omissions constituting willful misconduct or gross negligence on the
part of such Letter of Credit Issuer.

 

4.4.         Canadian
Facility Letter of Credit Participations.  (a) Immediately upon the issuance by a Letter of Credit Issuer of
any Canadian Facility Letter of Credit, such Letter of Credit Issuer shall be
deemed to have sold and transferred to each Canadian Facility Lender, and each
such Canadian Facility Lender (each a “Canadian Facility Participant”) shall be deemed
irrevocably and unconditionally to have purchased and received from such Letter
of Credit Issuer, without recourse or warranty, an undivided interest and
participation, to the extent of such Lender’s Canadian Revolving Facility
Percentage, in such Canadian Facility Letter of Credit, each substitute letter
of credit, each drawing made thereunder, the obligations of the Borrowers under
this Agreement with respect thereto (although Letter of Credit Fees shall be
payable directly to the Canadian Administrative Agent for the account of the
Canadian Facility Lenders as provided in section 5.2(b) and the Canadian
Facility Participants shall have no right to receive any portion of any fees of
the nature contemplated by section 5.2(c)), the obligations of any
Canadian Facility Letter of Credit

 

69

 

Obligor under any Letter of Credit Documents pertaining thereto, and
any security for, or guaranty pertaining to, any of the foregoing.  Upon any change in the Canadian Revolving
Commitments of the Canadian Facility Lenders pursuant to section 2.1(f)
or

section 15.4(c), it is hereby agreed that, with respect to all
outstanding Canadian Facility Letters of Credit and Unpaid Canadian Facility
Drawings, there shall be an automatic adjustment to the participations pursuant
to this section 4.4 to reflect the new Canadian Revolving Facility
Percentages of any Canadian Facility Lender.

 

(b)           In
determining whether to pay under any Canadian Facility Letter of Credit, the
Letter of Credit Issuer shall not have any obligation relative to the Canadian
Facility Participants other than to determine that any documents required to be
delivered under such Canadian Facility Letter of Credit have been delivered and
that they appear to comply on their face with the requirements of such Canadian
Facility Letter of Credit. Any action taken or omitted to be taken by the
Letter of Credit Issuer under or in connection with any Canadian Facility
Letter of Credit if taken or omitted in the absence of gross negligence or
willful misconduct, shall not create for such Letter of Credit Issuer any
resulting liability.

 

(c)           In
the event that a Letter of Credit Issuer makes any payment under any Canadian
Facility Letter of Credit and the applicable Borrower shall not have reimbursed
(or caused any applicable Canadian Facility Letter of Credit Obligor to
reimburse) such amount in full to such Letter of Credit Issuer pursuant to section
4.3(a), such Letter of Credit Issuer shall promptly notify the Canadian
Administrative Agent, and the Canadian Administrative Agent shall promptly
notify each Canadian Facility Participant of such failure, and each Canadian
Facility Participant shall promptly and unconditionally pay to the Canadian
Administrative Agent for the account of such Letter of Credit Issuer, the
amount of such Canadian Facility Participant’s Canadian Revolving Facility
Percentage of such payment in Canadian Dollars and in same day funds, provided, however,
that no Canadian Facility Participant shall be obligated to pay to the Canadian
Administrative Agent its Canadian Revolving Facility Percentage of such
unreimbursed amount for any wrongful payment made by such Letter of Credit
Issuer under a Canadian Facility Letter of Credit as a result of acts or
omissions constituting willful misconduct or gross negligence on the part of
the Letter of Credit Issuer.  If the
Canadian Administrative Agent so notifies any Canadian Facility Participant
required to fund a payment under a Canadian Facility Letter of Credit prior to
11:00 A.M. (local time at its Notice Office) on any Business Day, such Canadian
Facility Participant shall make available to the Canadian Administrative Agent
for the account of the relevant Letter of Credit Issuer such Canadian Facility
Participant’s Canadian Revolving Facility Percentage of the amount of such
payment on such Business Day in same day funds.  If and to the extent such Canadian Facility Participant shall not
have so made its Canadian Revolving Facility Percentage of the amount of such
payment available to the Canadian Administrative Agent for the account of the
relevant Letter of Credit Issuer, such Canadian Facility Participant agrees to
pay to the Canadian Administrative Agent for the account of such Letter of
Credit Issuer, forthwith on demand such amount, together with interest thereon,
for each day from such date until the date such amount is paid to the Canadian
Administrative Agent for the account of such Letter of Credit Issuer at the
Canadian Prime Rate.  The failure of any
Canadian Facility Participant to make available to the Canadian Administrative
Agent for the account of the relevant Letter of Credit Issuer its Canadian
Revolving Facility Percentage of any payment under any Canadian Facility Letter
of Credit shall not relieve any other Canadian Facility Participant of its
obligation hereunder to make available to the Canadian Administrative Agent for
the account of such Letter of Credit Issuer its Canadian Revolving Facility 

 

70

 

Percentage of any payment under any Canadian Facility Letter of Credit
on the date required, as specified above, but no Canadian Facility Participant
shall be responsible for the failure of any other Canadian Facility Participant
to make available to the Canadian Administrative Agent for the account of such
Letter of Credit Issuer such other Canadian Facility Participant’s Canadian
Revolving Facility Percentage of any such payment.

 

(d)           Whenever
a Letter of Credit Issuer receives a payment of a reimbursement obligation as
to which the Canadian Administrative Agent has received for the account of such
Letter of Credit Issuer any payments from the Canadian Facility Participants
pursuant to section 4.4(c) above, such Letter of Credit Issuer shall pay
to the Canadian Administrative Agent and the Canadian Administrative Agent
shall promptly pay to each Canadian Facility Participant which has paid its
Canadian Revolving Facility Percentage thereof, in Canadian Dollars and in same
day funds, an amount equal to such Canadian Facility Participant’s Canadian
Revolving Facility Percentage of the principal amount thereof and interest
thereon accruing after the purchase of the respective participations, as and to
the extent so received.

 

(e)           The
obligations of the Canadian Facility Participants to make payments to the
Canadian Administrative Agent for the account of the Letter of Credit Issuer
with respect to Canadian Facility Letters of Credit shall be irrevocable and
not subject to counterclaim, set-off or other defense or any other
qualification or exception whatsoever and shall be made in accordance with the
terms and conditions of this Agreement under all circumstances, including,
without limitation, any of the following circumstances:

 

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

 

(ii)           the existence of any
claim, set-off defense or other right which a Borrower may have at any time
against a beneficiary named in a Canadian Facility Letter of Credit, any
transferee of any Canadian Facility Letter of Credit (or any person for whom
any such transferee may be acting), either Administrative Agent, either Co-Lead
Arranger, either Co-Documentation Agent, any Letter of Credit Issuer, any
Lender, or other person, whether in connection with this Agreement, any
Canadian Facility Letter of Credit, the transactions contemplated herein or any
unrelated transactions (including any underlying transaction between a Borrower
and the beneficiary named in any such Canadian Facility Letter of Credit),
other than any claim which a Borrower may have against any applicable Letter of
Credit Issuer for gross negligence or willful misconduct of such Letter of
Credit Issuer in making payment under any applicable Canadian Facility Letter
of Credit;

 

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

 

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

 

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

 

71

 

(f)            To
the extent the Letter of Credit Issuer is not indemnified by the Borrowers, the
Canadian Facility Participants will reimburse and indemnify the Letter of
Credit Issuer, in proportion to their respective Canadian Revolving Facility
Percentages, for and against any and all liabilities, obligations, losses,
damages, penalties, claims, actions, judgments, costs, expenses or disbursements
of whatsoever kind or nature which may be imposed on, asserted against or
incurred by the Letter of Credit Issuer in performing its respective duties in
any way related to or arising out of its issuance of Canadian Facility Letters
of Credit, provided
that no Canadian Facility Participants shall be liable for any portion of such
liabilities, obligations, losses, damages, penalties, claims, actions,
judgments, costs, expenses or disbursements resulting from the Letter of Credit
Issuer’s gross negligence or willful misconduct.

 

4.5.         Increased Costs.  If after the Effective Date, the adoption of
any applicable law, rule or regulation, or any change therein, or any change in
the interpretation or administration thereof by any governmental authority, central
bank or comparable agency charged with the interpretation or administration
thereof, or compliance by any Letter of Credit Issuer or any Canadian Facility
Lender with any request or directive (whether or not having the force of law)
by any such authority, central bank or comparable agency (in each case made
subsequent to the Effective Date) shall either (i) impose, modify or make
applicable any reserve, deposit, capital adequacy or similar requirement
against Canadian Facility Letters of Credit issued by such Letter of Credit
Issuer or such Canadian Facility Lender’s participation therein, or (ii) shall
impose on such Letter of Credit Issuer or any Canadian Facility Lender any
other conditions affecting this Agreement, any Canadian Facility Letter of Credit
or such Lender’s participation therein; and the result of any of the foregoing
is to increase the cost to such Letter of Credit Issuer or such Lender of
issuing, maintaining or participating in any Canadian Facility Letter of
Credit, or to reduce the amount of any sum received or receivable by such
Letter of Credit Issuer or such Lender hereunder (other than any increased cost
or reduction in the amount received or receivable resulting from the imposition
of or a change in the rate of taxes or similar charges), then, upon demand to
the applicable Borrower by such Letter of Credit Issuer or such Lender (a copy
of which notice shall be sent by such Letter of Credit Issuer or such Lender to
the Canadian Administrative Agent), the applicable Borrower shall pay to such
Letter of Credit Issuer or such Canadian Facility Lender such additional amount
or amounts as will compensate any such Letter of Credit Issuer or such Lender
for such increased cost or reduction.  A
certificate submitted to the applicable Borrower by the Letter of Credit Issuer
or any such Canadian Facility Lender, as the case may be (a copy of which
certificate shall be sent by the Letter of Credit Issuer or such Lender to the
Canadian Administrative Agent), setting forth the basis for the determination
of such additional amount or amounts necessary to compensate any Letter of
Credit Issuer or such Lender as aforesaid shall be conclusive and binding on
the Borrowers absent manifest error, although the failure to deliver any such
certificate shall not release or diminish any of such Borrower’s obligations to
pay additional amounts pursuant to this section 4.5.

 

72

 

SECTION
5.         FEES.

 

5.1.         Facility Fee.  (a) The Borrowers agree to pay to each of
the Administrative Agents a Facility Fee (“Facility Fee”), for the account of each Non-Defaulting
Lender, for the period from and including the Effective Date to but not
including the date the Total Domestic Revolving Commitment and the Total
Canadian Revolving Commitment have been terminated and no Domestic Revolving
Loans or Canadian Revolving Loans are outstanding.  The Facility Fee payable to the Domestic Administrative Agent, in
the case of any such Non-Defaulting Lender that is a Domestic Revolving Facility
Lender, shall be paid in U.S. Dollars and shall be computed based on the
aggregate amount of the Domestic Revolving Commitment of such Non-Defaulting
Lender, whether used or unused, at the Applicable Facility Fee Rate in effect
from time to time.  The Facility Fee
payable to the Canadian Administrative Agent, in the case of any such
Non-Defaulting Lender that is a Canadian Facility Lender, shall be paid in
Canadian Dollars and shall be computed based on the aggregate amount of the
Canadian Revolving Commitment of such Non-Defaulting Lender, whether used or
unused, at the Applicable Facility Fee Rate in effect from time to time.  The Facility Fee shall be due and payable in
arrears on the last Business Day of each January, April, July and October,  commencing with the last Business Day of
October 2004, and on the earlier date on which, as applicable, the Domestic
Revolving Loans or the Canadian Revolving Loans are paid or payable in full.

 

(b)           As
used herein, the term “Applicable Facility Fee Rate” means the particular rate
per annum determined by the Domestic Administrative Agents in accordance with
the Pricing Grid Table which appears in section 2.8(j) hereof, based on
the ratio of Consolidated Total Debt to Consolidated EBITDA, and the following
provisions:

 

(i)            Initially, until
changed hereunder in accordance with the following provisions, the Applicable
Facility Fee Rate will be 17.50 Basis Points per annum.

 

(ii)           Commencing with the
fiscal quarter of the Borrowers ended on or nearest to September 30, 2004, and
continuing for each fiscal quarter thereafter, the Domestic Administrative
Agent will determine the Applicable Facility Fee Rate in accordance with the
Pricing Grid Table, based on the ratio of (x) Consolidated Total Debt as of the
end of the fiscal quarter, to (y) Consolidated EBITDA for the Testing Period
ended on the last day of the fiscal quarter, and identified in such Pricing
Grid Table; provided, however,
that in computing Consolidated EBITDA for each of the Testing Periods ending on
or prior to June 30, 2005, Consolidated EBITDA shall be determined as if
Genlyte Group had owned, directly or indirectly, 100% of, as the case may be,
the capital stock or the membership interests in Genlyte Thomas and GTG
Intangible during all of such Testing Period. 
Changes in the Applicable Facility Fee Rate shall be made and effective
as of the same date as is provided in section 2.8(j) in the case of the
determination of the Applicable Eurodollar Margin.

 

(iii)          Notwithstanding the
above provisions, during any period when (A) the Borrowers have failed to
timely deliver their consolidated financial statements referred to in section
10.1(a) or (b), accompanied by the applicable certificate and
calculations referred to in section 10.1(c), (B) a Default under section
12.1(a) has occurred and is continuing, or (C) an Event of Default has
occurred and is continuing, without waiving or limiting any other right or
remedy of the Lenders in respect thereof, the Applicable Facility Fee Rate
shall be

 

73

 

the highest rate per annum indicated therefor in the
Pricing Grid Table, regardless of the ratio of Consolidated Total Debt to
Consolidated EBITDA at such time.

 

(iv)          The Domestic
Administrative Agent will promptly provide notice of its determinations
hereunder to the Canadian Administrative Agent, the Borrowers and the
Lenders.  Any such determination by the
Domestic Administrative Agent pursuant to this section 5.1(b) shall be
conclusive and binding absent manifest error.

 

5.2.         Closing, Letter of
Credit and Other Fees.  (a)
The Borrowers shall pay (i) to the Domestic Administrative Agent on the
Effective Date for distribution to each Lender a closing fee for such Lender in
the amount specified in the Commitment allocation letter between such Lender
and either or both of the Co-Lead Arrangers; and (ii) to the Administrative
Agents on the Effective Date and thereafter for so long as such Administrative
Agent serves in such capacity for its own account such fees as heretofore and
hereafter agreed by the Borrowers and the Administrative Agents, including,
without limitation, the administrative agency fee due under that certain Fee
Letter dated May 24, 2004 by and among the Co-Lead Arrangers, NCB, Bank One,
Genlyte Group and Genlyte Thomas (the “Fee Letter”), which is payable, in advance, beginning on
the Closing Date and quarterly thereafter on the last Business Day of each of
the third, sixth, ninth and twelfth calendar months thereafter (and on the
successive anniversary of each such date).

 

(b)           The
Borrowers agree to pay (i) to the Domestic Administrative Agent, in U.S.
Dollars, for the account of each Non-Defaulting Lender that is a Domestic
Revolving Facility Lender, pro rata on the basis of its Domestic Revolving Facility
Percentage, and (ii) to the Canadian Administrative Agent, in Canadian Dollars,
for the account of each Non-Defaulting Lender that is a Canadian Facility
Lender, pro rata
on the basis of its Canadian Revolving Facility Percentage, a fee in respect of
each Letter of Credit (the “Letter of Credit Fee”), payable quarterly in arrears on
the last Business Day of each January, April, July and October following the
date of issuance thereof and on the earlier date on which, as applicable, the
Domestic Revolving Loans or the Canadian Revolving Loans are paid or payable in
full, computed at a rate per annum equal to the Applicable Eurodollar Margin
for Domestic Term Loans then in effect, on the Stated Amount thereof for the
period from the date of issuance to the expiration date thereof (including any
extensions of such expiration date which may be made at the election of the
account party or beneficiary).  For the
purpose of determining the Letter of Credit Fee payable hereunder with respect
to the Existing Letters of Credit, each Existing Letter of Credit which shall
constitute a “Domestic Facility Letter of Credit” under this Agreement as
contemplated by section 3.1(d), shall be deemed issued on the Closing
Date.  The Borrowers also agree to pay
additional Letter of Credit Fees, on demand, at the rate of two hundred (200)
Basis Points per annum, on the Stated Amount of each Letter of Credit, for any
period when a Default under section 12.1(a) or Event of Default is in
existence.

 

(c)           The
Borrowers agree to pay directly to each Letter of Credit Issuer, for its own
account, a fee in respect of each Letter of Credit issued by it (a “Facing Fee”), payable
on the date of issuance (or any increase in the amount, or renewal or
extension) thereof, computed at the rate of twelve and one-half (12.5) Basis
Points on the Stated Amount thereof, such Facing Fee to be payable in U.S.
Dollars with respect to Domestic Facility Letters of Credit and in Canadian
Dollars with respect to Canadian Facility Letters of Credit.

 

74

 

(d)           The
Borrowers agree to pay directly to each Letter of Credit Issuer upon each
issuance of, drawing under, and/or amendment, extension, renewal or transfer
of, a Letter of Credit issued by it such reasonable amounts as shall at the
time of such issuance, drawing, amendment, extension, renewal or transfer be
the administrative or processing charge which such Letter of Credit Issuer is
customarily charging for issuances of, drawings under or amendments,
extensions, renewals or transfers of, letters of credit issued by it.

 

5.3.         Computations
of Fees. 
All computations of Fees under this Agreement shall be made in
accordance with section 15.7(b).

 

75

 

SECTION
6.         REDUCTIONS AND TERMINATION OF
COMMITMENTS.

 

6.1.         Voluntary
Termination/Reduction of Commitments.

 

(a)           Upon
at least three Business Days’ prior written notice (or telephonic notice
confirmed in writing) to the Administrative Agents at their Notice Office
(which notice the Administrative Agents shall promptly transmit to each of the
Lenders), the Borrowers shall have the right, without premium or penalty, to:

 

(i)            terminate the Total
Domestic Revolving Commitment and the Total Canadian Revolving Commitment, provided that (i) all
outstanding Loans thereunder are contemporaneously prepaid in accordance with section
7.1, and (ii) either (A) no Letters of Credit remain outstanding, or (B)
the Borrowers shall contemporaneously take one of the following actions: (x)
cause all outstanding Letters of Credit to be surrendered for cancellation (any
such Letters of Credit to be replaced by letters of credit issued by other
financial institutions reasonably acceptable to the Required Domestic Revolving
Facility Lenders or the Required Canadian Facility Lenders, as applicable), (y)
the applicable Borrower shall pay to (1) the Domestic Administrative Agent an
amount in cash and/or Cash Equivalents equal to 100% of the Domestic Facility
Letter of Credit Outstandings and (2) the Canadian Administrative Agent an
amount in cash and/or Cash Equivalents equal to 100% of the Canadian Facility
Letter of Credit Outstandings, and the Administrative Agents shall hold such
payments as security for the reimbursement obligations of the Borrowers
hereunder in respect of Letters of Credit pursuant to a cash collateral
agreement to be entered into in form and substance reasonably satisfactory to
the Administrative Agents and the Borrowers (which shall permit certain
investments in Cash Equivalents satisfactory to the Administrative Agents and
the Borrowers until the proceeds are applied to the Obligations), or (z) the
applicable Borrower shall cause to be issued (1) one or more irrevocable
letters of credit to each Letter of Credit Issuer with an aggregate stated
amount equal to 100% of the Domestic Facility Letter of Credit Outstandings
applicable to Domestic Facility Letters of Credit issued by such Letter of
Credit Issuer and (2) one or more irrevocable letters of credit to each Letter
of Credit Issuer with an aggregate stated amount equal to 100% of the Canadian
Facility Letter of Credit Outstandings applicable to Canadian Facility Letters
of Credit issued by such Letter of Credit Issuer, in each case on terms, and
from financial institutions, reasonably acceptable to such Letter of Credit
Issuer, as security for the reimbursement obligations of the Borrowers
hereunder in respect of such Letters of Credit.

 

(b)           Upon
at least three Business Days’ prior written notice (or telephonic notice
confirmed in writing) to the Domestic Administrative Agent at its Notice Office
(which notice the Domestic Administrative Agent shall promptly transmit to each
of the Lenders), the Borrowers shall have the right, without premium or
penalty, to:

 

(i)            terminate the Total
Domestic Revolving Commitment, provided that (i) all outstanding Domestic Revolving
Loans are contemporaneously prepaid in accordance with section 7.1, and
(ii) either(A) no Domestic Facility Letters of Credit remain outstanding, or

 

76

 

(B) the Domestic Facility Borrowers shall
contemporaneously take one of the following actions: (x) cause all outstanding
Domestic Facility Letters of Credit to be surrendered for cancellation (any
such Domestic Facility Letters of Credit to be replaced by letters of credit
issued by other financial institutions reasonably acceptable to the Required
Domestic Revolving Facility Lenders), (y) the Domestic Facility Borrowers shall
pay to the Domestic Administrative Agent an amount in cash and/or Cash
Equivalents equal to 100% of the Domestic Facility Letter of Credit
Outstandings and the Domestic Administrative Agent shall hold such payment as
security for the reimbursement obligations of the Domestic Facility Borrowers
hereunder in respect of Domestic Facility Letters of Credit pursuant to a cash
collateral agreement to be entered into in form and substance reasonably
satisfactory to the Domestic Administrative Agent and the Domestic Facility
Borrowers (which shall permit certain investments in Cash Equivalents
satisfactory to the Domestic Administrative Agent and the Domestic Facility
Borrowers until the proceeds are applied to the Obligations), or (z) the
applicable Borrower shall cause to be issued one or more irrevocable letters of
credit to each Letter of Credit Issuer with an aggregate stated amount equal to
100% of the Domestic Facility Letter of Credit Outstandings applicable to
Domestic Facility Letters of Credit issued by such Letter of Credit Issuer on
terms, and from financial institutions, reasonably acceptable to such Letter of
Credit Issuer, as security for the reimbursement obligations of the Borrowers
hereunder in respect of such Domestic Facility Letters of Credit;

 

(ii)           terminate the Swing
Line Revolving Commitment, provided that all outstanding Swing Line Revolving Loans
are contemporaneously prepaid in accordance with section 7.1;

 

(iii)          partially and
permanently reduce the Unutilized Total Domestic Revolving Commitment, provided that (i) any
such reduction shall apply to proportionately and permanently reduce the
Domestic Revolving Commitment of each of the Domestic Revolving Facility
Lenders; (ii) any partial reduction of the Unutilized Total Domestic Revolving
Commitment pursuant to this section 6.1(b) shall be in the amount of at
least $2,000,000 (or, if greater, in integral multiples of $500,000); and (iii)
after giving effect to any such partial reduction of the Unutilized Total
Domestic Revolving Commitment, the Total Domestic Revolving Commitment then in
effect shall exceed the Swing Line Revolving Commitment then in effect by at
least $20,000,000; and/or

 

(iv)          partially and
permanently reduce the Unutilized Swing Line Revolving Commitment, provided that any
partial reduction of the Unutilized Swing Line Revolving Commitment pursuant to
this section 6.1(b) shall be in the amount of at least $2,000,000 (or,
if greater, in integral multiples of $500,000).

 

(c)           Upon
at least three Business Days’ prior written notice (or telephonic notice
confirmed in writing) to the Canadian Administrative Agent at its Notice Office
(which notice the Canadian Administrative Agent shall promptly transmit to each
of the Lenders), the Borrowers shall have the right, without premium or
penalty, to:

 

(i)            terminate the Total
Canadian Revolving Commitment, provided that (i) all outstanding Canadian Revolving
Loans are contemporaneously prepaid in accordance with

 

77

 

section 7.1
and (ii) either (A) no Canadian Facility Letters of Credit remain outstanding,
or (B) the Canadian Facility Borrowers shall contemporaneously take one of the
following actions: (x) cause all outstanding Canadian Facility Letters of
Credit to be surrendered for cancellation (any such Canadian Facility Letters
of Credit to be replaced by letters of credit issued by other financial
institutions reasonably acceptable to the Required Canadian Facility Lenders),
(y) pay to the Canadian Administrative Agent an amount in cash and/or Cash
Equivalents equal to 100% of the Canadian Facility Letter of Credit
Outstandings and the Canadian Administrative Agent shall hold such payment as
security for the reimbursement obligations of the Canadian Facility Borrowers
hereunder in respect of Canadian Facility Letters of Credit pursuant to a cash collateral
agreement to be entered into in form and substance reasonably satisfactory to
the Canadian Administrative Agent and the Canadian Facility Borrowers (which
shall permit certain investments in Cash Equivalents satisfactory to the
Canadian Administrative Agent and the Canadian Facility Borrowers until the
proceeds are applied to the Obligations), or (z) cause to be issued one or more
irrevocable letters of credit to each Letter of Credit Issuer with an aggregate
stated amount equal to 100% of the Canadian Facility Letter of Credit
Outstandings applicable to Canadian Facility Letters of Credit issued by such
Letter of Credit Issuer, in each case on terms, and from financial
institutions, reasonably acceptable to such Letter of Credit Issuer, as security
for the reimbursement obligations of the Borrowers hereunder in respect of such
Canadian Facility Letters of Credit; and/or

 

(ii)           partially and
permanently reduce the Unutilized Total Canadian Revolving Commitment, provided that (i) any
such reduction shall apply to proportionately and permanently reduce the
Canadian Revolving Commitment of each of the Canadian Facility Lenders; and
(ii) any partial reduction of the Unutilized Total Canadian Revolving
Commitment pursuant to this section 6.1(c) shall be in the amount of at
least CDN$2,000,000 (or, if greater, in integral multiples of CDN$500,000).

 

6.2.         Mandatory
Termination/Adjustments of Commitments, etc.  (a) The Total Domestic Revolving Commitment
and the Total Domestic Canadian Commitment and any obligation to issue Letters
of Credit shall terminate (and the Commitment of each Lender thereunder shall
terminate) on the earlier of (x) the Maturity Date and (y) the date on which a
Change of Control occurs.

 

(b)           The
Total Domestic Revolving Commitment shall be permanently reduced, without
premium or penalty, at the time that any mandatory prepayment of Domestic
Revolving Loans would be made pursuant to section 7.2(d) or 7.2(f)
if Domestic Revolving Loans were then outstanding in the full amount of the
Total Domestic Revolving Commitment then in effect, in an amount equal to the
required prepayment of principal of Domestic Revolving Loans which would be
required to be made in such circumstance. 
Any such reduction shall apply to proportionately and permanently reduce
the Domestic Revolving Commitment of each of the Domestic Revolving Facility
Lenders. The Borrowers will provide at least three Business Days’ prior written
notice (or telephonic notice confirmed in writing) to the Domestic
Administrative Agent at its Notice Office (which notice the Domestic
Administrative Agent shall promptly transmit to each of the Domestic Revolving
Facility Lenders), of any reduction of the Total Domestic Revolving Commitment
pursuant to this section 6.2(b), specifying the date and amount of the
reduction.

 

78

 

(c)           The
Total Canadian Revolving Commitment shall be permanently reduced, without
premium or penalty, at the time that any mandatory prepayment of Canadian
Revolving Loans would be made pursuant to section 7.2(d) or 7.2(f)
if Canadian Revolving Loans were then outstanding in the full amount of the
Total Canadian Revolving Commitment then in effect, in an amount equal to the
required prepayment of principal of Canadian Revolving Loans which would be
required to be made in such circumstance. 
Any such reduction shall apply to proportionately and permanently reduce
the Canadian Revolving Commitment of each of the Canadian Facility Lenders.  The Borrowers will provide at least three
Business Days’ prior written notice (or telephonic notice confirmed in writing)
to the Canadian Administrative Agent at its Notice Office (which notice the
Canadian Administrative Agent shall promptly transmit to each of the Canadian
Facility Lenders), of any reduction of the Total Canadian Revolving Commitment
pursuant to this section 6.2(c), specifying the date and amount of the
reduction.

 

SECTION
7.         PAYMENTS.

 

7.1.         Voluntary
Prepayments. 
The Borrowers shall have the right to prepay any of their Loans, in
whole or in part, without premium or penalty, from time to time on the
following terms and conditions:

 

(a)           the Borrowers shall
give the Domestic Administrative Agent (in the case of Domestic Revolving Loans
and the Domestic Term Loans) and the Canadian Administrative Agent (in the case
of Canadian Revolving Loans) at its respective Notice Office written or
telephonic notice (in the case of telephonic notice, promptly confirmed in
writing if so requested by such Administrative Agent) of their intent to prepay
such Loans, the amount of such prepayment and (in the case of Eurodollar Loans
or CDOR Loans) the specific Borrowing(s) pursuant to which made, which notice
shall be received by the applicable Administrative Agent by

 

(i)            12:00 noon (local time
at the Notice Office) three Business Days prior to the date of such prepayment,
in the case of any prepayment of Eurodollar Loans or CDOR Loans, or

 

(ii)           12:00 noon (local time
at the Notice Office) one Business day prior to the date of such prepayment, in
the case of any prepayment of Domestic Prime Rate Loans or Canadian Prime Rate
Loans,

 

and which notice shall promptly be transmitted by such
Administrative Agent to each of the affected Lenders;

 

(b)           in the case of
prepayment of any Borrowings under the Domestic Revolving Facility, each
partial prepayment of any such Borrowing shall be in an aggregate principal of
at least $500,000 or an integral multiple of $100,000 in excess thereof, in the
case of Domestic Prime Rate Loans, and at least $2,000,000 or an integral
multiple of $1,000,000 in excess thereof, in the case of Eurodollar Loans;

 

79

 

(c)           in the case of
prepayment of any Borrowings under the Swing Line Revolving Facility, each
partial prepayment of any such Borrowing shall be in an aggregate principal of
at least $500,000 or an integral multiple of $100,000 in excess thereof;

 

(d)           in the case of
prepayment of any Borrowings under the Canadian Revolving Facility, each
partial prepayment of any such Borrowing shall be in an aggregate principal of
at least CDN$500,000 or an integral multiple of CDN$100,000 in excess thereof,
in the case of Canadian Prime Rate Loans, at least CDN$2,000,000 or an integral
multiple of CDN$1,000,000 in excess thereof, in the case of CDOR Loans; at
least $500,000 or an integral multiple of $100,000 in excess thereof, in the
case of Domestic Prime Rate Loans, and at least $2,000,000 or an integral
multiple of $1,000,000 in excess thereof, in the case of Eurodollar Loans;

 

(e)           in the case of
prepayment of any Borrowings under the Domestic Term Loan Facility, each
partial prepayment of any such Borrowing shall be in an aggregate principal of
at least $500,000 or an integral multiple of $100,000 in excess thereof, in the
case of Domestic Prime Rate Loans, and at least $2,000,000 or an integral
multiple of $1,000,000 in excess thereof, in the case of Eurodollar Loans, and
shall be applied to the principal installments of the Domestic Term Loans in
their inverse order of maturity;

 

(f)            no partial prepayment
of any Loans made pursuant to a Borrowing shall reduce the aggregate principal
amount of such Loans outstanding pursuant to such Borrowing to an amount less
than the Minimum Borrowing Amount applicable thereto;

 

(g)           each prepayment in
respect of any Loans made pursuant to a Borrowing shall be applied pro rata among such
Loans; and

 

(h)           each prepayment of
Eurodollar Loans or CDOR Loans pursuant to this section 7.1 on any date
other than the last day of the Interest Period applicable thereto shall be
accompanied by any amounts payable in respect thereof under section 2.11.

 

7.2.         Mandatory
Prepayments. 
The Loans shall be subject to mandatory prepayment in accordance with
the following provisions:

 

(a)           If Outstanding Domestic Revolving Loans and Swing Line
Revolving Loans Exceed Total Domestic Revolving Commitment.  If on any date (after giving effect to any
other payments on such date) the sum of (i) the aggregate outstanding principal
amount of Domestic Revolving Loans and the Domestic Facility Letter of Credit
Outstandings, plus
(ii) the aggregate outstanding principal amount of Swing Line Revolving Loans, exceeds the Total
Domestic Revolving Commitment as then in effect, the Domestic Facility
Borrowers shall prepay on such date that principal amount of Swing Line
Revolving Loans and, after Swing Line Revolving Loans have been paid in full,
Unpaid Domestic Facility Drawings and Domestic Revolving Loans, in an aggregate
amount at least equal to such excess and conforming in the case of partial
prepayments of any Loans to the applicable requirements as to the amounts of
partial prepayments which are contained in section 7.1.  If,

 

80

 

after giving effect to the prepayment of Loans and
Unpaid Domestic Facility Drawings, the aggregate amount of Domestic Facility
Letter of Credit Outstandings exceeds the Total Domestic Revolving Commitment
as then in effect, the Domestic Facility Borrowers shall pay to the Domestic
Administrative Agent an amount in cash and/or Cash Equivalents equal to such
excess and the Domestic Administrative Agent shall hold such payment as
security for the reimbursement obligations of the Domestic Facility Borrowers
hereunder in respect of Domestic Facility Letters of Credit pursuant to a cash
collateral agreement to be entered into in form and substance reasonably
satisfactory to the Domestic Administrative Agent and the Domestic Facility
Borrowers (which shall permit certain investments in Cash Equivalents
satisfactory to the Domestic Administrative Agent and the Domestic Facility
Borrowers until the proceeds are applied to the Obligations).

 

(b)           If Outstanding Swing Line Revolving Loans Exceed Swing
Line Revolving Commitment. 
If on any date (after giving effect to any other payments on such date)
the aggregate outstanding principal amount of Swing Line Revolving Loans
exceeds the Swing Line Revolving Commitment at such time, the Domestic Facility
Borrowers shall prepay on such date Swing Line Revolving Loans in an aggregate
amount at least equal to such excess and conforming in the case of partial
prepayments of Swing Line Revolving Loans to the requirements as to the amounts
of partial prepayments of Swing Line Revolving Loans which are contained in section
7.1.

 

(c)           If Outstanding Canadian Revolving Loans Exceed
Canadian Revolving Commitment. 
If on any date (after giving effect to any other payments on such date)
the sum of (i) the aggregate outstanding principal amount of Canadian Revolving
Loans denominated in Canadian Dollars, (ii) the Canadian Dollar equivalent of
the aggregate outstanding principal amount of Canadian Revolving Loans
denominated in Dollars and (iii) the Canadian Facility Letter of Credit
Outstandings, exceeds
the Total Canadian Revolving Commitment as then in effect, the Canadian
Facility Borrowers shall prepay on such date the Unpaid Canadian Facility
Drawings and Canadian Revolving Loans, in an aggregate amount at least equal to
such excess and conforming in the case of partial prepayments of any Loans to
the applicable requirements as to the amounts of partial prepayments which are
contained in section 7.1.  If,
after giving effect to the prepayment of Loans and Unpaid Canadian Facility
Drawings, the aggregate amount of Canadian Facility Letter of Credit
Outstandings exceeds the Total Canadian Revolving Commitment as then in effect,
the Canadian Facility Borrowers shall pay to the Canadian Administrative Agent
an amount in cash and/or Cash Equivalents equal to such excess and the Canadian
Administrative Agent shall hold such payment as security for the reimbursement
obligations of the Canadian Facility Borrowers hereunder in respect of Canadian
Facility Letters of Credit pursuant to a cash collateral agreement to be
entered into in form and substance reasonably satisfactory to the Canadian
Administrative Agent and the Canadian Facility Borrowers (which shall permit
certain investments in Cash Equivalents satisfactory to the Canadian
Administrative Agent and the Canadian Facility Borrowers until the proceeds are
applied to the Obligations).

 

(d)           Certain Proceeds of Asset Sales.  If at any time following the Closing Date
the Borrowers or any of their respective Material Subsidiaries have received
cumulative Net Cash Proceeds during such fiscal year from one or more Asset
Sales in an aggregate amount

 

81

 

at least equal to $25,000,000, then not later than the
third Business Day following the date of receipt of any Net Cash Proceeds in
excess of such amount, an amount, conforming to the requirements as to the
amount of partial prepayments contained in section 7.1, at least equal
to 100% of the Net Cash Proceeds then received in excess of such amount from
any Asset Sale, shall be applied as a mandatory prepayment of principal of, first, Domestic Term
Loans (applied to the principal installments of the Domestic Term Loans in
their inverse order of maturity), second, after Domestic Term Loans have been paid in
full, Swing Line Revolving Loans and, third, after Swing Line Revolving Loans have been paid
in full, Domestic Revolving Loans and Canadian Revolving Loans in such
proportionate amounts as each of the Total Domestic Revolving Commitment and
the Total Canadian Revolving Commitment, as applicable, bears to the Total Revolving
Commitment; provided,
that (i) if no Default under section 12.1(a) or Event of Default shall
have occurred and be continuing, (ii) the Borrowers and their Material
Subsidiaries have expected Consolidated Capital Expenditures during the
following 12 months, and (iii) the Borrowers notify the Administrative Agents
of the amount and nature thereof and of their intention to reinvest all or a
portion of such Net Cash Proceeds in such Consolidated Capital Expenditures
during such 12 month period, then no such prepayment shall be required to the
extent the Borrowers so indicate that such reinvestment will take place.  If at the end of any such 12 month period
any portion of such Net Cash Proceeds has not been so reinvested, the Borrowers
will immediately make a prepayment of the outstanding Domestic Term Loans,
Swing Line Revolving Loans, Domestic Revolving Loans and Canadian Revolving
Loans as provided above in an amount, conforming to the requirements as to
amount of prepayments contained in section 7.1, at least equal to such
remaining amount.

 

(e)           Change of Control.  On the date of which a Change of Control
occurs, notwithstanding anything to the contrary contained in this Agreement,
no further Borrowings shall be made and the then outstanding principal amount
of all Loans, if any, shall become due and payable and shall be prepaid in
full, together with accrued interest and Fees and any other Obligations, and
the Borrowers shall contemporaneously take one of the following actions: (x)
cause all outstanding Letters of Credit to be surrendered for cancellation (any
such Letters of Credit to be replaced by letters of credit issued by other
financial institutions reasonably acceptable to the Required Domestic Revolving
Facility Lenders or the Required Canadian Facility Lenders, as applicable), (y)
the applicable Borrower shall pay to (1) the Domestic Administrative Agent an
amount in cash and/or Cash Equivalents equal to 100% of the Domestic Facility
Letter of Credit Outstandings and (2) the Canadian Administrative Agent an
amount in cash and/or Cash Equivalents equal to 100% of the Canadian Facility
Letter of Credit Outstandings, and the Administrative Agents shall hold such
payments as security for the reimbursement obligations of the Borrowers
hereunder in respect of Letters of Credit pursuant to a cash collateral
agreement to be entered into in form and substance reasonably satisfactory to
the Administrative Agents and the Borrowers (which shall permit certain
investments in Cash Equivalents satisfactory to the Administrative Agents and
the Borrowers until the proceeds are applied to the Obligations), or (z) the
applicable Borrower shall caused to be issued (1) one or more irrevocable
letters of credit to each Letter of Credit Issuer with an aggregate stated amount
equal to 100% of the Domestic Facility Letter of Credit Outstandings applicable
to Domestic Facility Letters of Credit issued by such Letter of Credit Issuer
and (2) one or more irrevocable letters of credit to each Letter of Credit

 

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Issuer with an aggregate stated amount equal to 100%
of the Canadian Facility Letter of Credit Outstandings applicable to Canadian
Facility Letters of Credit issued by such Letter of Credit Issuer, in each case
on terms, and from financial institutions, reasonably acceptable to such Letter
of Credit Issuer, as security for the reimbursement obligations of the
Borrowers hereunder in respect of such Letters of Credit.

 

(f)            Certain Proceeds of Additional Indebtedness or Equity.  Not later than the Business Day following
the date of the receipt by the Borrowers or any of their respective Material
Subsidiaries of the cash proceeds (net of underwriting discounts and
commissions, placement agent fees and other customary fees and costs associated
therewith) from the incurrence of any additional Indebtedness or the sale or
issuance of debt or equity securities by a Borrower or any of its Material
Subsidiaries after the Closing Date in an amount, as to Indebtedness incurred
or debt securities sold or issued, exceeding the Indebtedness permitted to be
incurred under section 11.4, without waiving or limiting any other right
or remedy of the Lenders in respect of such Event of Default existing by
reference to section 11.4, such net cash proceeds shall be applied as a
mandatory prepayment of principal of, first, Domestic Term Loans (applied to the principal
installments of the Domestic Term Loans in their inverse order of maturity); second, after the
Domestic Term Loans have been paid in full, Swing Line Revolving Loans and, third, after Swing
Line Revolving Loans have been paid in full, Domestic Revolving Loans and
Canadian Revolving Loans in such proportionate amounts as each of the Total
Domestic Revolving Commitment and the Total Canadian Revolving Commitment, as
applicable, bears to the Total Revolving Commitment.

 

(g)           Particular Loans to be Prepaid.  With respect to each repayment or prepayment
of Loans required by this section 7.2, the Borrowers shall designate the
Types of Loans which are to be prepaid and the specific Borrowing(s) pursuant
to which such repayment or prepayment is to be made, provided that (i) the Borrowers shall first
so designate all Loans that are Domestic Prime Rate Loans, Canadian Prime Rate
Loans and Eurodollar Loans and CDOR Loans with Interest Periods ending on the
date of repayment or prepayment prior to designating any other Eurodollar Loans
or CDOR Loans for repayment or prepayment, (ii) if the outstanding principal
amount of Eurodollar Loans made pursuant to a Borrowing is reduced below the
applicable Minimum Borrowing Amount as a result of any such repayment or
prepayment, then all the Loans outstanding pursuant to such Borrowing shall be
Converted into Domestic Prime Rate Loans, (iii) if the outstanding principal
amount of CDOR Loans made pursuant to a Borrowing is reduced below the
applicable Minimum Borrowing Amount as a result of any such repayment or
prepayment, then all the Loans outstanding pursuant to such Borrowing shall be
Converted into Canadian Prime Rate Loans and (iv) each repayment and prepayment
of any Loans made pursuant to a Borrowing shall be applied pro rata among such Loans. In the absence of
a designation by the Borrowers as described in the preceding sentence, the
Administrative Agents shall, subject to the above, make such designation in
their sole discretion.  Any repayment or
prepayment of Eurodollar Loans or CDOR Loans pursuant to this section 7.2
shall in all events be accompanied by such compensation as is required by section
2.11.

 

83

 

No Foreign Borrower shall be required to make a mandatory repayment or
prepayment as provided in this section 7.2 in excess of the amount
actually advanced to such Foreign Borrower or other Foreign Borrowers of the
same country.

 

7.3.         Method and
Place of Payment. 
(a) Except as otherwise specifically provided herein, all payments under
this Agreement shall be made to the Domestic Administrative Agent or the
Canadian Administrative Agent, as the case may be, for the ratable (based on
its pro rata share)
account of the Domestic Revolving Facility Lenders, the Canadian Facility
Lenders, the Domestic Term Loan Lenders entitled thereto, not later than 12:00
noon (local time at the Payment Office) on the date when due and shall be made
in immediately available funds and U.S. Dollars, or in the case of a Canadian
Revolving Loan that is denominated in Canadian Dollars or amounts due with
respect to Canadian Facility Letters of Credit, in immediately available funds
and in Canadian Dollars, at the applicable Payment Office, it being understood
that written notice by the Borrowers to the applicable Administrative Agent to
make a payment from the funds in the Borrowers’ account at the Payment Office
shall constitute the making of such payment to the extent of such funds held in
such account. Any payments under this Agreement which are made later than 12:00
noon (local time at the Payment Office) shall be deemed to have been made on
the next succeeding Business Day. Whenever any payment to be made hereunder
shall be stated to be due on a day which is not a Business Day, the due date
thereof shall be extended to the next succeeding Business Day and, with respect
to payments of principal, interest shall be payable during such extension at
the applicable rate in effect immediately prior to such extension.

 

(b)           If
at any time insufficient funds are received by and available to the Domestic
Administrative Agent or the Canadian Administrative Agent, as the case may be,
to pay fully all amounts of principal, interest and Fees then due hereunder and
an Event of Default is not then in existence, such funds shall be applied (i) first, towards
payment of interest and Fees then due hereunder, ratably among the parties
entitled thereto in accordance with the amounts of interest and Fees then due
to such parties, and (ii) second, towards payment of principal then due hereunder,
ratably among the parties entitled thereto in accordance with the amounts of
principal then due to such parties.

 

7.4.         Net Payments.  (a)               (i)  All payments made by the Borrowers
hereunder, under any Note or any other Credit Document (including, without
limitation, the Guaranties and the guaranty to be provided by Genlyte Group as
contemplated by Article 14), will be made without setoff, counterclaim
or other defense.  All such payments
will be made free and clear of, and without deduction or withholding for, any
present or future taxes, levies, imposts, duties, fees, assessments or other
charges of whatever nature, other that Excluded Taxes, now or hereafter imposed
by any jurisdiction or by any political subdivision or taxing authority thereof
or therein with respect to such payments and all interest, penalties or similar
liabilities with respect to the taxes, levies imposts, duties, fees,
assessments or other charges described in this section 7.4(a)(i) that are not
Excluded Taxes (all such taxes, levies, imposts, duties, fees, assessments or
other charges that are not Excluded Taxes, and all such interest, penalties or
similar liabilities with respect thereto being referred to collectively as “Taxes”).  If any Taxes are so levied or imposed, the
Borrowers agree to pay, and indemnify each Lender in respect of, the full
amount of such Taxes and such additional amounts (other than in respect of
Excluded Taxes) as may be necessary so that every payment by it of all amounts
due hereunder, under any Note or under any other Credit Document, after
withholding

 

84

 

or deduction for or on account of any Taxes, will not be less than the
amount provided for herein or in such Note or in such other Credit Document.

 

(ii)  If any
amounts are payable in respect of Taxes pursuant to paragraph (i), above, the
Borrowers agree to reimburse and indemnify each Lender, upon the written
request of such Lender, for taxes imposed on or measured by the net income or
profits of such Lender pursuant to the laws of the jurisdiction in which such
Lender is organized or in which the principal office or Applicable Lending
Office of such Lender is located or under the laws of any political subdivision
or taxing authority of any such jurisdiction and for any withholding of income
or similar taxes imposed by, as applicable, the United States or Canada (or any
such jurisdiction within such country) as such Lender shall reasonably
determine are payable by, or withheld from, such Lender in respect of such
amounts so paid to or on behalf of such Lender pursuant to said paragraph (i)
and in respect of any amounts paid to or on behalf of such Lender pursuant to
this paragraph (ii), which request shall be accompanied by a statement from
such Lender setting forth, in reasonable detail, the computations used in
determining such amounts.

 

(iii)  The
Borrowers will furnish to the Domestic Administrative Agent or the Canadian
Administrative Agent, as the case may be, within 60 days after the date of the
payment of any Taxes, or any withholding or deduction on account thereof, is
due pursuant to applicable law certified copies of tax receipts, or other
evidence satisfactory to such Lender, evidencing such payment by the
Borrowers.  The Borrowers will indemnify
and hold harmless each Administrative Agent and each Lender, and reimburse such
Administrative Agent or such Lender upon its written request, for the amount of
any Taxes so levied or imposed and paid or withheld by such Lender.

 

(b)           At
any time after the applicable Lender (or, if applicable, participant) shall
have made a written demand for increased cost or other compensation pursuant to
any one or more of section 2.10, section 3.5  or section 4.5 or for Taxes pursuant
to section 7.4(a), the Borrowers may cause the affected Lender (or
participant) to be replaced with, as applicable, (i) a lending institution
meeting the requirements for an Eligible Transferee approved by the Domestic
Administrative Agent, in the event the affected Lender is a Domestic Revolving
Facility Lender or a Domestic Term Loan Lender, or the Canadian Administrative
Agent, in the event the affected Lender is a Canadian Facility Lender (which
approval may not be unreasonably withheld by such Administrative Agent) or (ii)
or a participant complying with the requirements of section 15.4(b) and
reasonably satisfactory to the participating Lender.  Any such replacement with a new lending institution, as Lender,
so approved by the applicable Administrative Agent shall be made effective
pursuant to an Assignment and Assumption Agreement (which the affected Lender
shall execute and deliver) but only upon payment to the affected Lender of all
principal of and interest on all of its then outstanding Loans and of all Fees
and other Obligations then owing to it.

 

(c)           Any
Foreign Lender that is entitled to an exemption from or reduction of
withholding tax under the laws of, as applicable, the United States or Canada,
or under any treaty to which, as the case may be, the United States or Canada
is a party, with respect to any payment under this Agreement shall deliver to
the applicable Borrower (with a copy to the applicable Administrative Agent) at
the time or times prescribed by applicable law, such properly completed and
executed documentation prescribed by applicable law or reasonably requested by
such Borrower as will permit such payment to be made without, or at a reduced
rate of, withholding.  If any such
Foreign

 

85

 

Lender becomes subject to any Tax by reason of its failure to comply
with the requirements of the preceding sentence, the applicable Borrower shall,
at the expense of such Foreign Lender, take such steps as such Foreign Lender
shall reasonably request to assist such Foreign Lender to recover such Tax.

 

SECTION
8.         CONDITIONS PRECEDENT.

 

8.1.         Conditions
Precedent at Closing Date. 
Prior to the effectiveness of this Agreement to amend and restate the
Existing Credit Agreement in its entirety and the occurrence of the initial
Borrowing or Letter of Credit issuance hereunder, the Borrowers shall satisfy
each of the following conditions:

 

(a)           Effectiveness; Notes.  On or prior to the Closing Date, (i) the
Effective Date shall have occurred and (ii) there shall have been delivered to
the Administrative Agents for the account of each Lender the appropriate Note
or Notes executed by, as applicable, the Domestic Facility Borrowers, the
Domestic Facility Borrowers other than Genlyte Thomas or the Canadian Facility
Borrowers, in each case, in the amount, maturity and as otherwise provided
herein.

 

(b)           Fees, etc. 
The Borrowers shall have paid or caused to be paid all fees required to
be paid by it on or prior to such date pursuant to section 5 hereof, the
structuring and arrangement fee to each of the Co-Lead Arrangers as heretofore
agreed to in the Fee Letter, and all reasonable fees and expenses of the
Administrative Agents and of special counsel to the Administrative Agents which
have been invoiced on or prior to such date in connection with the preparation,
execution and delivery of this Agreement and the other Credit Documents and the
consummation of the transactions contemplated hereby and thereby.

 

(c)           Formation Documents and Good Standing.  The Administrative Agents shall have
received, in sufficient quantity for the Administrative Agents and the Lenders,
(i) a photocopy of, as appropriate, the Certificate of Formation or the
Articles or Certificate (or equivalent formation documents) of Incorporation of
each of the Credit Parties and any and all amendments and restatements thereof,
certified as of a recent date by the Secretary of State (or equivalent public
officer) of the state or province of its formation or organization, as the case
may be, (ii) a certificate the Secretary of State of the state of its formation
or organization, as the case may be, dated as of a recent date, listing all
charter documents affecting each Credit Party and certifying as to the good
standing of each Credit Party, and (iii) a photocopy of a copy of, as
appropriate, the Operating Agreement (including all amendments thereto),
By-Laws or equivalent governing documents of each of the Credit Parties, in
each case certified as true, correct and in full force and effect by a
Principal Officer of such Credit Party.

 

(d)           Officer’s Certificate.  The Administrative Agents shall have
received, in sufficient quantity for the Administrative Agents and the Lenders,
a certificate of the Principal Officer of each of the Borrowers dated the
Closing Date or reasonably prior

 

86

 

thereto, substantially in the form attached hereto as Exhibit
C, and such certificate shall be satisfactory in form and substance to the
Administrative Agents.

 

(e)           Opinion of Counsel.  On the Closing Date, the Administrative
Agents shall have received an opinion, addressed to the Administrative Agents
and each of the Lenders and dated the Closing Date, from Stoll, Keenon &
Park, LLP, counsel to the Borrowers and the Guarantors, relating to the matters
referenced in Exhibit D hereto and covering such other matters incident
to the transactions contemplated hereby as the Administrative Agents may
reasonably request, such opinion to be in form and substance satisfactory to
the Administrative Agents.

 

(f)            Receivables Facility.  The Qualified Receivables Facility pursuant
to the Qualified Receivables Sale Agreement and the Qualified Receivables
Purchase Agreement shall have been consummated having aggregate “Commitments”
(as defined in the Qualified Receivables Purchase Agreement) in the amount of
$100,000,000 and having a term of not less than 362 days.

 

(g)           Thomas Purchase.  The Administrative Agents shall have received true and complete
copies of the Purchase Agreement and related schedules, agreements and other
material documents; all of the Thomas Interests shall have been acquired by
certain of the Credit Parties; no material breach by any party to the Purchase
Agreement shall then exist; and simultaneously with the initial advance of
Loans on the Closing Date, all of the purchase price for the Thomas Interests
due under and pursuant to the Purchase Agreement shall have been paid and
satisfied in full.

 

(h)           Search Reports.  The Administrative Agents shall have received completed requests
for information on Form UCC-11, or search reports from one or more commercial
search firms acceptable to the Administrative Agents, listing all of the
effective financing statements filed against any Credit Party in any
jurisdiction in which such person maintains an office, together with copies of
such financing statements.

 

(i)            Material Adverse Change.  There shall have occurred no change in the
business, property, prospects, condition (financial or otherwise) or results of
operations of the Borrowers and their respective Subsidiaries which could
reasonably be expected to result in a Material Adverse Effect.

 

(j)            No Material Litigation.  There shall be no litigation or governmental
or regulatory investigation or proceeding pending against or involving the
Borrowers or any of their respective Subsidiaries which could reasonably be
expected to have a Material Adverse Effect.

 

(k)           Proceedings and Documents.  All corporate and other proceedings and all
documents incidental to the transactions contemplated hereby shall be
reasonably satisfactory in substance and form to the Administrative Agents and
the Lenders and the Administrative Agents and its special counsel and the
Lenders shall have received all such

 

87

 

counterpart originals or certified or other copies of
such documents as the Administrative Agents or their special counsel or any
Lender may reasonably request.

 

(l)            Security Documents.  The Administrative Agents shall have
received from the Guarantors the executed Guaranties in the form attached
hereto as Exhibit G-1 or G-2, as applicable, and from Genlyte
Group, GTG Intangible, Genlyte Thomas, Genlyte Intangible Inc., Lumec Holding
Corp., Canlyte Inc., Genlyte General Nova Scotia and Genlyte Limited Nova
Scotia executed Pledge Agreements in the form attached hereto as Exhibit F,
whereby Genlyte Group, GTG Intangible, Genlyte Thomas, Genlyte Intangible Inc.,
Lumec Holding Corp. or Canlyte Inc., as the case may be, shall pledge, or cause
to be pledged, the capital stock of each of the following: Genlyte Limited Nova
Scotia, Genlyte General Nova Scotia, Canlyte Inc., Lumec Holding Corp.,
Ledalite Architectural Products LP, Lumec Inc. and Genlyte International
Acquisitions LP.  In connection
therewith, the Administrative Agents also shall have received the stock
certificate(s) representing, and the Borrowers shall have taken such other
actions as the Administrative Agents may deem necessary or appropriate to
perfect their security interest in, and have control of, 65% of the capital
stock of such Persons, together with executed stock powers all as described in
the Pledge Agreements.  In addition, the
Administrative Agents shall have received executed Guaranties of Genlyte
Lighting, Genlyte Holdings, Genlyte Thomas and Genlyte Group in the form
attached hereto as Exhibit G-3.

 

(m)          Resolutions
and Approvals.  The
Administrative Agents shall have received, in sufficient quantity for the
Administrative Agents and the Lenders, certified copies of the resolutions of
the Members, Management Board, Board of Directors or the equivalent thereof, as
the case may be, of each of the Borrowers and their respective Material Subsidiaries
approving the Credit Documents to which it is a party and of all documents
evidencing other necessary corporate action and governmental approvals, if any,
with respect to the execution, delivery and performance by such entities of the
Credit Documents.

 

(n)           Incumbency Certificates.  The Administrative Agents shall have
received, in sufficient quantity for the Administrative Agents and the Lenders,
a certificate of the Secretary or an Assistant Secretary of each Borrower and
each other Credit Party, certifying the names and true signatures of the
officers of the Borrowers or such other Credit Party, as the case may be,
authorized to sign the Credit Documents to which the Borrower or such other
Credit Party is a party and the other documents which may be executed and
delivered in connection herewith.

 

(o)           No Material Adverse Change in Loan Syndication or
Capital Markets.  There shall
not have occurred a material disruption or material adverse change in
financial, banking, loan syndication or capital market conditions generally or
in the market for new syndicated loan facilities similar to the credit
facilities provided for herein which, in the sole respective judgment of the
Administrative Agents, could be expected to materially adversely affect the
syndication of portions or all of the Facilities to additional Lenders.

 

(p)           Financial Projections.  The Administrative Agents shall have
received the Financial Projections in form and substance satisfactory to the
Administrative Agents.

 

88

 

(q)           Fairness Opinion.  On the Closing Date, the Administrative Agents shall have
received a copy of the ‘fairness opinion’ of Lehman Brothers, addressed to the
Board of Directors of Genlyte Group dated May 20, 2004.

 

(r)           Due Diligence.  Each of the Administrative Agents shall have completed to its
reasonable satisfaction such examinations and other due diligence of the
Borrowers and their respective Subsidiaries as it deems necessary.

 

(s)           Evidence of Insurance.  The Administrative Agents shall have received
certificates of insurance and other evidence, satisfactory to it, of compliance
with the insurance requirements of this Agreement.

 

(t)            Other Documents.  The Administrative Agents and the Lenders shall have received such
other approvals, opinions, documents or materials as they may reasonably
request.

 

8.2.         Conditions
Precedent to All Loans. 
The obligation of the Lenders to make each Loan and the obligation of a
Letter of Credit Issuer to issue a Letter of Credit is subject, at the time
thereof, to the satisfaction of the following conditions:

 

(a)           Notice of Borrowing, etc.  The Domestic Administrative Agent or the
Canadian Administrative Agent, as applicable, shall have received a Notice of
Borrowing or request for the issuance of a Letter of Credit meeting the
requirements of section 2.3 with respect to the incurrence of Loans and section
3.2 or section 4.2 with respect to the issuance of Letters of
Credit.

 

(b)           No Default; Representations and Warranties.  At the time of such Loan or issuance of such
Letter of Credit, as the case may be, and also after giving effect thereto, (i)
there shall exist no Default or Event of Default, (ii) all representations and
warranties of the Credit Parties contained herein or in the other Credit
Documents shall be true and correct with the same effect as though such
representations and warranties had been made on and as of the date thereof,
except to the extent that such representations and warranties expressly relate
to an earlier specified date, in which case such representations and warranties
shall have been true and correct in all material respects as of the date when
made, and (iii) no event or condition having a Material Adverse Effect shall
have occurred.

 

The acceptance of the benefits of each Loan or Letter of Credit shall
constitute a representation and warranty by the Borrowers to each of the
Lenders that all of the applicable conditions specified in section 8.1
and/or 8.2, as the case may be, exist as of that time.  All of the certificates, legal opinions and
other documents and papers referred to in this section 8, unless
otherwise specified, shall be delivered to the Administrative Agents for the
account of each of the Lenders and, except for the Notes, in sufficient
counterparts for each of the Lenders, and the Administrative Agents will
promptly distribute to the Lenders their respective Notes and the copies of
such other certificates, legal opinions and documents.

 

89

 

SECTION 9.         REPRESENTATIONS
AND WARRANTIES.

 

In order to induce the Lenders to enter into this
Agreement and to make the Loans provided for herein, the Borrowers make the
following representations and warranties to, and agreements with, the Lenders,
on a joint and several basis, all of which shall survive the execution and
delivery of this Agreement and the making of each Loan and the issuance of each
Letter of Credit; provided, however,
for the avoidance of doubt, at the time of the making of any Loan or the issuance
of any Letter of Credit subsequent to the Closing Date, the following
representations and warranties to, and agreements with, the Lenders shall be
deemed made, on a joint and several basis, only by those Credit Parties that
are the Borrowers at such time:

 

9.1.         Corporate Status, etc.  Each of the Borrowers and their respective
Subsidiaries (i) is a duly organized or formed and validly existing
corporation, partnership or limited liability company, as the case may be, in
good standing under the laws of the jurisdiction of its formation and has the
corporate, partnership or limited liability company power and authority, as
applicable, to own its property and assets and to transact the business in
which it is engaged and presently proposes to engage, and (ii) has duly
qualified and is authorized to do business in all jurisdictions where it is
required to be so qualified except where the failure to be so qualified could
not reasonably be expected to have a Material Adverse Effect.

 

9.2.         Subsidiaries.  Annex II hereto lists, as of the date
hereof, each Subsidiary of the Genlyte Group and sets forth their respective
jurisdictions of incorporation or formation, as the case may be, and the
percentage of their respective capital stock, membership interests or partnership
interests, as the case may be, owned by Genlyte Group or other such
Subsidiaries.  All of the issued and
outstanding shares of capital stock, membership interests or partnership
interests, as the case may be, of Genlyte Group and such Subsidiaries have been
duly authorized and validly issued and are fully paid and nonassessable.  There are no options, warrants or other
rights outstanding to purchase shares of any of such Subsidiaries, except as
indicated in Annex II.

 

9.3.         Corporate Power and Authority,
etc.  Each of the Credit
Parties has the corporate power and authority to execute, deliver and carry out
the terms and provisions of the Credit Documents to which it is party and has
taken all necessary corporate action to authorize the execution, delivery and
performance of the Credit Documents to which it is party.  Each of the Credit Parties has duly executed
and delivered each Credit Document to which it is party and each Credit
Document to which it is party constitutes the legal, valid and binding
agreement or obligation of that Credit Party enforceable in accordance with its
terms, except to the extent that the enforceability thereof may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or other similar
laws generally affecting creditors’ rights and by equitable principles
(regardless of whether enforcement is sought in equity or at law).

 

9.4.         No Violation.  Neither the execution, delivery and
performance by any Credit Party of the Credit Documents to which it is party nor
compliance with the terms and provisions thereof (i) will contravene any
provision of any law, statute, rule, regulation, order, writ, injunction or
decree of any court or governmental instrumentality applicable to that Credit
Party or its properties and assets, (ii) will conflict with or result in any
breach of, any of the terms, covenants, conditions or provisions of, or
constitute a default under, or result in the creation or imposition of (or the
obligation to create or impose) any Lien (other than Liens created under the
Credit Documents) upon any of the property

 

90

 

or assets of that Credit Party pursuant to the terms of any promissory
note, bond, debenture, indenture, mortgage, deed of trust, credit or loan
agreement, or any other material agreement or other instrument, to which that
Credit Party is a party or by which it or any of its property or assets are
bound or to which it may be subject other than pursuant to the Existing Credit
Agreement, all of the commitments under which shall be terminated, and all of
the borrowings thereunder shall be repaid, not later than the Closing Date in
accordance with section 8.1(f), or (iii) will violate any provision of
the articles or certificate of incorporation, or certificate of formation or
code of regulations or bylaws or operating agreement or other organizational
documents of that Credit Party.

 

9.5.         Governmental
Approvals. 
No order, consent, approval, license, authorization, or validation of,
or filing, recording or registration with, or exemption by, any foreign or
domestic governmental or public body or authority, or any subdivision thereof,
is required to authorize or is required as a condition to (i) the execution,
delivery and performance by any Credit Party of any Credit Document to which it
is a party, or (ii) the legality, validity, binding effect or enforceability of
any Credit Document to which any Credit Party is a party.

 

9.6.         Litigation.  There are no actions, suits or proceedings
pending or, to, the knowledge of the Borrowers, threatened with respect to the
Borrowers or any of their respective Subsidiaries (i) that have resulted in, or
that a Borrower reasonably expects to result in, liability for damages in
excess of fifteen percent (15%) of the Consolidated Net Worth (ii) which
question the validity or enforceability of any of the Credit Documents, or of
any action to be taken by any of the Borrowers pursuant to any of the Credit
Documents to which it is a party.

 

9.7.         Use of Proceeds; Margin Regulations.  (a) The proceeds of all Loans shall be
utilized to pay the purchase price for the Thomas Interests under and pursuant
to the Purchase Agreement and for other lawful purposes not inconsistent with
the requirements of this Agreement.

 

(b)           No
part of the proceeds of any Loan will be used directly or indirectly to
purchase or carry Margin Stock, or to extend credit to others for the purpose
of purchasing or carrying any Margin Stock, in violation of any of the
provisions of Regulation T, U or X of the Board of Governors of the Federal
Reserve System. The Borrowers are not engaged in the business of extending
credit for the purpose of purchasing or carrying any Margin Stock. At no time
would more than 25% of the value of the assets of the Borrowers or of the
Borrowers and the consolidated Subsidiaries that are subject to any
“arrangement” (as such term is used in section 221.2(g) of such Regulation U)
hereunder be represented by Margin Stock.

 

9.8.         Financial
Statements, etc. 
(a) The Borrowers have furnished to the Lenders and the Administrative
Agents complete and correct copies of (i) the audited consolidated balance
sheet of Genlyte Group and its consolidated Subsidiaries, as of the end of the
fiscal years ended on or nearest to December 31, 2002 and December 31, 2003,
and the related audited consolidated statements of income, members’ equity (or
net worth), and cash flows for the fiscal years then ended, accompanied by the
unqualified report thereon of its independent accountants; and (ii) the unaudited
consolidated balance sheet of Genlyte Group and its consolidated Subsidiaries,
as of April 3, 2004, and the related consolidated statements of income and of
cash flows for the fiscal quarter or quarters then ended.  All such financial statements (together with
the notes included or referenced therein) have been prepared in accordance with
GAAP, consistently applied (except as stated therein), and fairly present

 

91

 

in all material respects the financial position of Genlyte Group and
its Subsidiaries as of the respective dates indicated and the consolidated
results of their operations and cash flows for the respective periods
indicated, subject in the case of any such financial statements which are unaudited,
to normal audit adjustments, none of which will involve a Material Adverse
Effect.

 

(b)           The
Borrowers have delivered or caused to be delivered to the Lenders prior to the
execution and delivery of this Agreement (i) a copy of Genlyte Group’s Report on
Form 10-K as filed (without Exhibits) with the SEC for their fiscal year ended
on or nearest to December 31, 2003, which contains a general description of the
business and affairs of the Borrowers and the Subsidiaries, and (ii) financial
projections prepared by management of Genlyte Group and its Subsidiaries for
the fiscal years 2004-2008 (the “Financial Projections”).  The Financial Projections were prepared on behalf of the
Borrowers in good faith after taking into account the existing and historical levels
of business activity of Genlyte Group and its Subsidiaries, known trends,
including general economic trends, and all other information, assumptions and
estimates considered by management of Genlyte Group and its Subsidiaries to be
reasonable at the time.  Except for
facts relating to general economic and industry conditions, no facts are known
to the Borrowers at the Effective Date that the Borrowers believe will result
in a material adverse change in the results of operations reflected in the
Financial Projections.

 

9.9.         No Material
Adverse Change. 
Since December 31, 2003, there has been no change in the business,
operations, property, assets, prospects, liabilities or condition (financial or
otherwise) of the Borrowers and their respective Subsidiaries taken as a whole,
except for changes, none of which, individually or in the aggregate, has had or
could reasonably be expected to have, a Material Adverse Effect.

 

9.10.       Tax Returns
and Payments. 
Each of the Borrowers and their respective Subsidiaries has filed all
federal income tax returns and all other tax returns, domestic and foreign,
required to be filed by it and has paid all taxes and assessments payable by it
which have become due, other than those not yet delinquent and except for those
contested in good faith.  The Borrowers
and each of their respective Subsidiaries have established on their books such
charges, accruals and reserves in respect of taxes, assessments, fees and other
governmental charges for all fiscal periods as are required by GAAP.  There is no proposed assessment for
additional federal, foreign or state taxes for any period, or of any basis
therefor, which, individually or in the aggregate, taking into account such
charges, accruals and reserves in respect thereof as the Borrowers and their
Subsidiaries have made, could reasonably be expected to have a Material Adverse
Effect.

 

9.11.       Title to Properties, etc.  Each of the Borrowers and each of their
respective Subsidiaries has good and marketable title (or valid Leaseholds, in
the case of any leased property), in the case of real property, and good title
(or valid Leaseholds, in the case of any leased property), in the case of all
other property, to all of its properties and assets free and clear of Liens
other than Liens permitted by section 11.3, except for such defects in
title as could not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect.  The
interests of the Borrowers and each of their respective Subsidiaries in the
properties reflected in the most recent balance sheet referred to in section
9.8, taken as a whole, were sufficient, in the judgment of the Borrowers,
as of the date of such balance sheet for purposes of the ownership and
operation of the businesses conducted by the Borrowers and such Subsidiaries.

 

92

 

9.12.       Lawful Operations, etc.  Each of the Borrowers and their respective
Subsidiaries (i) holds all necessary federal, state and local governmental
licenses, registrations, certifications, permits and authorizations necessary
to conduct its business, and (ii) is in full compliance with all requirements
imposed by law, regulation or rule, whether federal, state or local, which are
applicable to it, its operations, or its properties and assets, including
without limitation, applicable requirements of Environmental Laws, except for any
failure to obtain and maintain in effect, or noncompliance, which, individually
or in the aggregate, could not reasonably be expected to have a Material
Adverse Effect.

 

9.13.       Environmental
Matters. 
(a) Each of the Borrowers and their respective Subsidiaries is in
compliance with all Environmental Laws governing its business, except to the extent
that any such failure to comply (together with any resulting penalties, fines
or forfeitures) could not reasonably be expected to have a Material Adverse
Effect.  All licenses, permits,
registrations or approvals required for the conduct of the business of the Borrowers,
and each of their respective Subsidiaries under any Environmental Law have been
secured, and each of the Borrowers and such Subsidiaries is in compliance
therewith, except
for such licenses, permits, registrations or approvals the failure to secure or
to comply therewith could not reasonably be expected to have a Material Adverse
Effect.  None of the Borrowers or any of
their respective Subsidiaries has received written notice, or otherwise knows,
that it is in any respect in noncompliance with, breach of or default under any
applicable writ, order, judgment, injunction, or decree to which a Borrower or
such Subsidiary is a party or which could affect the ability of a Borrower or
any of its Subsidiaries to operate any Real Property and no event has occurred
and is continuing which, with the passage of time or the giving of notice or
both, would constitute noncompliance, breach of or default thereunder, except in each such
case, such noncompliance, breaches or defaults as could not, in the aggregate,
reasonably be expected to have a Material Adverse Effect.  There are no Environmental Claims pending
or, to the best knowledge of a Borrower threatened, which could reasonably be
expected to have a Material Adverse Effect. 
There are no facts, circumstances, conditions or occurrences on any Real
Property now or at any time owned, leased or operated by the Borrowers or any
of their respective Subsidiaries or on any property adjacent to any such Real
Property, which are known by a Borrower or as to which a Borrower or any of its
Subsidiaries has received written notice, that could reasonably be expected (i)
to form the basis of an Environmental Claim against a Borrower or any of its
Subsidiaries or any Real Property of a Borrower or any of its Subsidiaries, or
(ii) to cause such Real Property to be subject to any restrictions on the
ownership, occupancy, use or transferability of such Real Property under any
Environmental Law, except in each such case, such Environmental Claims or
restrictions that individually or in the aggregate could not reasonably be
expected to have a Material Adverse Effect.

 

(b)           Hazardous
Materials have not at any time been (i) generated, used, treated or stored on,
or transported to or from, any Real Property of the Borrowers, or any of their
respective Subsidiaries or (ii) released on any such Real Property, in each
case where such occurrence or event is not in compliance in all material
respects with Environmental Laws and could reasonably be expected to have a
Material Adverse Effect.

 

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9.14.       Compliance
with ERISA and Canadian Benefit Plans.

 

(a)           Compliance with ERISA.  Compliance by the Borrowers with the
provisions hereof and Loans and Letters of Credit contemplated hereby will not
involve any Prohibited Transaction within the meaning of ERISA or section 4975
of the Code or any breach of any other comparable foreign law.  The Borrowers and each of their respective
Subsidiaries, (i) has fulfilled all obligations under minimum funding standards
of ERISA and the Code with respect to each Plan that is not a Multiemployer
Plan or a Multiple Employer Plan, (ii) has satisfied all respective
contribution obligations in respect of each Multiemployer Plan and each
Multiple Employer Plan, (iii) is in compliance in all respects with all other
applicable provisions of ERISA and the Code with respect to each Plan, each
Multiemployer Plan and each Multiple Employer Plan, and (iv) has not incurred
any liability under the Title IV of ERISA to the PBGC with respect to any Plan,
any Multiemployer Plan, any Multiple Employer Plan, or any trust established
thereunder, except
(with respect to any matter specified in any of the above clauses), for such
matters as, individually or in the aggregate, could not reasonably be expected
to have a Material Adverse Effect.  No
Plan or trust created thereunder has been terminated, and there have been no
Reportable Events, with respect to any Plan or trust created thereunder or with
respect to any Multiemployer Plan or Multiple Employer Plan, which termination
or Reportable Event has or could result in the termination of such Plan,
Multiemployer Plan or Multiple Employer Plan and give rise to a liability of
the Borrowers or any ERISA Affiliate in respect thereof which, individually or
in the aggregate, could reasonably be expected to have a Material Adverse
Effect.  No Borrower nor any ERISA
Affiliate is at the date hereof, or has been at any time within the five years
preceding the date hereof, an employer required to contribute to any
Multiemployer Plan or Multiple Employer Plan, or a “contributing sponsor” (as
such term is defined in section 4001 of ERISA) in any Multiemployer Plan or
Multiple Employer Plan.  Each Plan that
is intended to be so qualified under section 401(a) of the Code in fact is so
qualified.  No Borrower nor any ERISA
Affiliate has any contingent liability with respect to any post-retirement
“welfare benefit plan” (as such term is defined in ERISA) except as has been
disclosed prior to the date hereof to the Lenders in writing or on any financial
statements of a Borrower or any ERISA Affiliate provided to the Administrative
Agents and the Lenders or except for such contingent liabilities that,
individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect.

 

(b)           Canadian Benefit Plans.  Each employee benefit, health, welfare,
supplemental unemployment benefit, bonus, pension, profit sharing, deferred
compensation, stock compensation, stock purchase, retirement, hospitalization
insurance, medical, dental, legal, disability and similar plans or arrangements
or practices relating to the employees or former employees of any Canadian
Facility Borrower or any of the Subsidiaries of a Borrower resident in Canada
(collectively, the “Employee Plans”)
is and has been established, registered, qualified, invested and administered,
in all respects, in accordance with its terms, all laws, regulations, orders or
other legislative, administrative or judicial promulgations applicable to the
particular Employee Plan and all understandings, written or oral, between any
Canadian Facility Borrower or any of the Subsidiaries of a Borrower resident in
Canada, as applicable, and the employees or former employees, as applicable,
except when the failure to so establish, register, qualify, invest or
administer, could not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect.  All
obligations regarding the Employee Plans have been satisfied, there are no
outstanding

 

94

 

defaults or violations by any party thereto and no
taxes, penalties or fees are owing or exigible under any of the Employee Plans
that, individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect.  No Employee
Plan, nor any related trust or other funding medium thereunder, is subject to
any pending investigation, examination or other proceeding, action or claim
initiated by any governmental agency or instrumentality, or by any other party
(other than routine claims for benefits), and there exists no state of facts
which after notice or lapse of time or both could reasonably be expected to
give rise to any such investigation, examination or other proceeding, action or
claim or to affect the registration of any Employee Plan required to be
registered.  All contributions or
premiums required to be made by any Canadian Facility Borrower or any of the
Subsidiaries of a Borrower resident in Canada under the terms of each Employee
Plan or by applicable laws have been made in a timely fashion in accordance
with applicable laws and the terms of the Employee Plans except to the extent
that the failure to make such contributions or premiums could not, individually
or in the aggregate, reasonably be expected to have a Material Adverse
Effect.  Each Employee Plan which is
required to be funded pursuant to its terms or applicable laws is fully funded
on an ongoing, wind-up and solvency basis, determined using reasonable
actuarial assumptions except as could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.  Except as has been disclosed prior to the
date hereof to the Lenders in writing, none of the Employee Plans provides
benefits to retired or terminated employees or to their respective
beneficiaries or dependents.  None of
the Employee Plans is a multi-employer pension plan as defined under the
provisions of applicable Canadian federal or provincial law.

 

9.15.       Intellectual
Property, etc. 
The Borrowers or their Subsidiaries own or are licensed or otherwise
have the right to use all of the patents, trademarks, service marks, trade
names, copyrights, contractual franchises, authorizations and other rights that
are reasonably necessary for the present and planned future operation of their
respective businesses, without conflict in any material respect with the rights
of any other Person, other than patents, trademarks, service marks, trade
names, copyrights, contractual franchises, authorizations and other rights the
loss of which could not reasonably be expected to have a Material Adverse
Effect.  To the knowledge of the
Borrowers, no slogan or other advertising device, product, process, method,
substance, part or other material now employed, or now contemplated to be
employed, by the Borrowers or any of their respective Subsidiaries infringes
upon any rights held by any other Person in any material respect, which
infringement would give rise to a claim which, if determined adversely to such
Credit Party could reasonably be expected to have a Material Adverse Effect. No
claim or litigation regarding any of the foregoing is pending or to the
knowledge of the Borrowers threatened, and no patent, invention, device,
application, principle or any statute, law, rule, regulation, standard or code
is pending or, to the knowledge of the Borrowers, proposed, which, in either
case, could reasonably be expected to have a Material Adverse Effect.

 

9.16.       Investment
Company Act, etc. 
None of the Borrowers or any of their respective Subsidiaries is subject
to regulation with respect to the creation or incurrence of Indebtedness under
the Investment Company Act of 1940, as amended, the Interstate Commerce Act, as
amended, the Federal Power Act, as amended, the Public Utility Holding Company
Act of 1935, as amended, or any applicable state public utility law or any
other Federal or state statute or regulation limiting its ability to incur
Indebtedness.

 

95

 

9.17.       Burdensome Contracts; Labor
Relations.  None of the
Borrowers or any of their respective Subsidiaries (i) is subject to any
burdensome contract, agreement, corporate restriction, judgment, decree or
order, (ii) is a party to any labor dispute affecting any bargaining unit or
other group of employees generally, (iii) is subject to any material strike,
slow down, workout or other concerted interruptions of operations by employees
of a Borrower or any of its Subsidiaries, whether or not relating to any labor
contracts, (iv) is subject to any significant pending or, to the knowledge of a
Borrower, threatened, unfair labor practice complaint, before the National
Labor Relations Board, (v) is subject to any significant pending or, to the
knowledge of a Borrower, threatened, grievance or significant arbitration
proceeding arising out of or under any collective bargaining agreement, (vi) is
subject to any significant pending or, to the knowledge of a Borrower,
threatened, significant strike, labor dispute, slowdown or stoppage, or (vii)
is, to the knowledge of the Borrowers, involved or subject to any union
representation organizing or certification matter with respect to the employees
of a Borrower or any of its Subsidiaries, except (with respect to any matter specified in any of
the above clauses), for such matters as, individually or in the aggregate,
could not reasonably be expected to have a Material Adverse Effect.

 

9.18.       Existing
Indebtedness.  Annex
III sets forth a true and complete list by category, as of the date or
dates set forth therein, of all Indebtedness of Genlyte Group and each of its
Subsidiaries, on a consolidated basis, which will be outstanding on the Closing
Date after giving effect to the initial Borrowing hereunder, other than the
Indebtedness created under the Credit Documents (all such Indebtedness, whether
or not in a principal amount meeting such threshold and required to be so
listed in Annex III, herein the “Existing Indebtedness”). As and to the extent the
Administrative Agents have so requested, the Borrowers have provided to the
Administrative Agents prior to the date of execution hereof true and complete
copies (or summary descriptions) of all agreements and instruments governing
the Indebtedness listed in Annex III (the “Existing Indebtedness Agreements”).

 

9.19.       True and
Complete Disclosure. 
All factual information  (taken
as a whole) heretofore or contemporaneously furnished by or on behalf of the
Borrowers or any of their respective Subsidiaries in writing to the
Administrative Agents or any Lender for purposes of or in connection with this
Agreement or any transaction contemplated herein, other than the Financial
Projections (as to which representations are made only as provided in section
9.8), is, and all other such factual information hereafter furnished by or
on behalf of such person in writing to any Lender in respect of this Agreement
or any other Credit Document will be, true and accurate in all material
respects on the date as of which such information is dated or certified and not
incomplete by omitting to state any material fact necessary to make such
information not misleading at such time in light of the circumstances under
which such information was provided.  As
of the Effective Date, there is no fact known to the Borrowers or any of their
respective Subsidiaries which has, or could reasonably be expected to have, a
Material Adverse Effect which has not theretofore been disclosed in writing to
the Lenders.

 

9.20.       Solvency.  Each of the Borrowers and each of their
respective Subsidiaries is Solvent. 
After giving effect to the transactions contemplated by this Agreement,
including all Indebtedness incurred thereby, the Liens granted by the Borrowers
in connection therewith and the payment of all

 

96

 

fees and expenses related thereto, the Borrowers and each of their
respective Subsidiaries will be Solvent, determined as of the Closing Date.

 

9.21.       Material Agreements.  None of the Borrowers or any of their
respective Subsidiaries is in default in the performance, observance or
fulfillment of any of the obligations, covenants or conditions contained in (i)
any agreement to which it is a party, which default could, individually or in
the aggregate with all such defaults, reasonably be expected to result in a
Material Adverse Effect or (ii) any agreement or instrument evidencing or
governing Indebtedness, which default, individually or in the aggregate with
all such defaults, could reasonably be expected to result in a Material Adverse
Effect or, in either case, would, if such default had occurred after the
Closing Date, create an Event of Default under this Agreement.

 

9.22        Insurance.  The
Borrowers and their respective Subsidiaries carry insurance on their businesses
with financially sound and reputable insurance companies, in such amounts, with
such deductibles and covering such risks as are customarily carried by
companies engaged in similar businesses in localities where Borrower and such
Subsidiaries operate.

 

9.23.       Security Interests.  Once executed and delivered, and until
terminated in accordance with the terms thereof, each of the Security Documents
that grants a Lien creates, as security for the obligations purported to be
secured thereby and upon filing of any financing statements, deeds of hypothec,
or equivalent filings otherwise named in the appropriate office or offices or
delivery of possession of the collateral in question to the Administrative
Agents, as the case may be, a valid and enforceable perfected security interest
in and Lien on all of the Collateral subject thereto from time to time, in
favor of the Administrative Agents, as collateral agents, superior to and prior
to the rights of all third persons and subject to no other Liens, other than
Liens arising by operation of law, if any, in respect of personal property
taxes that are not due and payable.  No
filings or recordings are required in order to perfect the security interests
created under any Security Document except for filings or recordings required
in connection with any such Security Document which shall have been made, or
for which satisfactory arrangements have been made, upon or prior to the
execution and delivery thereof. All recording, stamp, intangible or other
similar taxes required to be paid by any person under applicable legal requirements
or other laws applicable to the property encumbered by the Security Documents
in connection with the execution, delivery, recordation, filing, registration,
perfection or enforcement thereof have been paid.

 

9.24        Thomas Purchase.    The Purchase Agreement is in full force and effect; no default by
either of Genlyte Group or Genlyte Thomas exists in the performance of any of
their respective obligations thereunder; to the Borrowers’ knowledge, no
default by Thomas Industries, Inc. or any of its “Transferring Affiliates” (as
defined in the Purchase Agreement) exists in the performance of any of their
respective obligations thereunder; to the Borrowers’ knowledge, each of the
representations and warranties made by Thomas Industries, Inc. to Genlyte Group
pursuant to the Purchase Agreement are true and correct in all material
respects; and upon consummation of the transactions contemplated by the
Purchase Agreement, on Closing Date, Genlyte Group (directly or indirectly
through its Material Subsidiaries) will own 100% of the issued and outstanding,
as the case may be, capital stock, membership interests, partnership interests
or other economic and voting equity interests in Genlyte Thomas, Genlyte
Holdings, Genlyte Lighting, Genlyte Limited Nova Scotia, Genlyte General Nova
Scotia, Genlyte Canadian Holdings, LLC, Genlyte Intangible Inc., Shakespeare
Composite Structures LLC, GTG Intangible, Genlyte International Acquisitions
LP,

 

97

 

Canlyte Inc., Ledalite Architectural Products LP (other than a 0.1%
interest), Lumec Holding Corp., and Lumec Inc., all free and clear of any
adverse claim (as defined in Section 8-102 of the Uniform Commercial Code) or
other Lien, other than pursuant to the Security Documents.

 

SECTION
10.       AFFIRMATIVE COVENANTS.

 

The Borrowers, on a joint and several basis, hereby
covenant and agree that until such time as the Total Commitment has been
terminated, no Notes are outstanding, there are no Domestic Facility Letter of
Credit Outstandings, there are no Canadian Facility Letter of Credit
Outstandings, and the Loans, together with interest and Fees hereunder and all
obligations in respect of Letters of Credit and all other Obligations, have
been indefeasibly paid in full:

 

10.1.       Reporting Requirements.  The Borrowers will furnish or cause to be
furnished to each Lender and the Administrative Agents:

 

(a)           Annual Financial Statements.  As soon as available and in any event within
90 days after the close of each fiscal year of Genlyte Group, the consolidated
balance sheet of Genlyte Group and its consolidated Subsidiaries, as at the end
of such fiscal year and the related consolidated statements of income, of
members’ equity (or net worth) and of cash flows for such fiscal year, in each
case setting forth comparative figures for the preceding fiscal year, all in
reasonable detail and, solely in the case of the consolidated financial
statements, accompanied by the opinion with respect to such consolidated
financial statements of independent public accountants of recognized national
standing selected by Genlyte Group, which opinion shall be unqualified and
shall state that such accountants audited such consolidated financial
statements in accordance with generally accepted auditing standards, that such
accountants believe that such audit provides a reasonable basis for their
opinion, and that in their opinion such consolidated financial statements
(including the notes thereto) present fairly in all material respects the
financial position of Genlyte Group and its Subsidiaries as at the end of such
fiscal year and the results of their operations and cash flows for such fiscal
year in conformity with GAAP.

 

(b)           Quarterly Financial Statements.  As soon as available and in any event within
45 days after the close of each of the first three quarterly accounting periods
in each fiscal year of Genlyte Group, the unaudited consolidated balance sheets
of Genlyte Group and its Subsidiaries, as at the end of such quarterly period
and the related unaudited consolidated statements of income, members’ equity
and of cash flows for such quarterly period, and setting forth, in the case of
such unaudited statements of income, members’ equity (or net worth) and of cash
flows, comparative figures for the related periods in the prior fiscal year,
and which financial statements shall be certified as true and correct on behalf
of Genlyte Group by a Principal Officer of Genlyte Group, subject to changes
resulting from normal year-end audit adjustments.

 

(c)           Compliance Certificates.

 

(i)            At the time of the
delivery of the financial statements provided for in sections 10.1(a)
and (b), a certificate on behalf of a Principal Officer of Genlyte

 

98

 

Group to the effect that no Default or Event of
Default exists or, if any Default or Event of Default does exist, specifying
the nature and extent thereof, which certificate shall set forth the
calculations required to establish compliance with the provisions of sections
11.3, 11.4, 11.5, 11.6, 11.7 and 11.8 of
this Agreement, together with such other supporting information as the
Administrative Agents may reasonably request to determine the accuracy of such
calculations.

 

(ii)           At the time of the
delivery of the financial statements provided for in section 10.1(a), a
certificate of the independent public accountants referenced therein stating
that in making the examination necessary therefor no knowledge was obtained of
any Default or Event of Default.

 

(d)           Budgets and Forecasts.  Within thirty (30) days following approval
by the Board of Directors of Genlyte Group, a consolidated budget in reasonable
detail for each entire fiscal year and for each of the fiscal quarters in such
fiscal year as customarily prepared by management for their internal use.

 

(e)           Notice of Default, Litigation or Material Adverse
Effect.

 

(i)            Promptly, and in any
event within three Business Days thereof, notice of the occurrence of any event
which constitutes a Default or Event of Default, or of the occurrence or existence
of any event or circumstance that reasonably forseeably will become a Default
or Event of Default, which notice shall specify the nature thereof, the period
of existence thereof and what action the Borrowers propose to take with respect
thereto;

 

(ii)           Promptly, and in any
event within three Business Days after any of the Borrowers or any of their
respective Subsidiaries obtains knowledge thereof, notice of any litigation or
governmental or regulatory investigation or proceeding pending against or involving
the Borrowers or any of their respective Subsidiaries which could reasonably be
expected to have a Material Adverse Effect; and

 

(iii)          Promptly, and in any
event within three Business Days after any Borrowers or any of their respective
Subsidiaries obtains knowledge of any matter that has resulted or is reasonably
expected to result in a Material Adverse Effect, including, without limitation,
to the extent applicable, (a) Environmental Claims or (b) any breach or
non-performance of, or any default under, any provision of any security issued
by any of the Borrowers or any of their respective Subsidiaries or of any
agreement, undertaking, contract, indenture, mortgage, deed of trust or other
instrument, document or agreement to which such Person is a party or by which
it or any of its property is bound.

 

(f)            ERISA. 
Promptly, and in any event within 15 days after the occurrence of any of
the following (if such event or condition reasonably could be expected to have
a Material Adverse Effect), the Borrowers will deliver to each of the Lenders a
certificate on behalf of the Borrowers of an Authorized Officer of the
Borrowers setting forth the full

 

99

 

details as to such occurrence and the action, if any,
that the Borrowers, such Subsidiary or such ERISA Affiliate is required or
proposes to take, together with any notices required or proposed to be given to
or filed with or by the Borrowers, such Subsidiary, the ERISA Affiliate, the
PBGC, a Plan participant or the Plan administrator with respect thereto:

 

(i)            that a Reportable
Event has occurred with respect to any Plan;

 

(ii)           the institution of any
steps by the Borrowers, any ERISA Affiliate, the PBGC or any other person to
terminate any Plan;

 

(iii)          the institution of any
steps by the Borrowers or any ERISA Affiliate to withdraw from any Plan;

 

(iv)          the institution of any
steps by the Borrowers or any of their respective Subsidiaries to withdraw from
any Multiemployer Plan or Multiple Employer Plan, if such withdrawal could
result in withdrawal liability (as described in Part 1 of Subtitle E of Title
IV of ERISA);

 

(v)           a non-exempt
“prohibited transaction” within the meaning of section 406 of ERISA in connection
with any Plan;

 

(vi)          that a Plan has an
Unfunded Current Liability;

 

(vii)         any material increase in
the contingent liability of the Borrowers or any of their respective
Subsidiaries with respect to any post-retirement welfare liability; or

 

(viii)        the taking of any action
by, or the written threat of the taking of any action by, the Internal Revenue
Service, the Department of Labor or the PBGC with respect to any of the
foregoing.

 

(g)           Canadian Benefit Plans.  Promptly, and in any event, within 15 days
after the occurrence of any of the following (if such event or condition
reasonably could be expected to have a Material Adverse Effect), the Borrowers
will deliver to each of the Lenders a certificate on behalf of the Borrowers of
an Authorized Officer of the Borrowers setting forth the full details as to
such occurrence and the action, if any, that the Borrowers or any of their
respective Subsidiaries are required or propose to take, together with any
notices required or proposed to be given to or filed with or by the Borrowers
or such Subsidiaries or an Employee Plan participant with respect thereto:

 

(i)            the institution of any
steps by the Borrowers or any of their respective Subsidiaries or an applicable
regulator or any other person to terminate any Employee Plan;

 

(ii)           that an Employee Plan
has an unfunded liability or solvency deficiency, determined in each case using
reasonable actuarial assumptions;

 

100

 

(iii)          any material increase in
the contingent liability of the Borrowers or any of their respective
Subsidiaries with respect to any post-retirement or post-termination welfare
liability; or

 

(iv)          the taking of any action
by, or the written threat of the taking of any action by, an applicable regulator,
an Employee Plan participant, a former Employee Plan participant or any other
person with respect to any Employee Plan.

 

(h)           Other Information.  Such other information or documents
(financial or otherwise) relating to a Borrower or any Subsidiary as any Lender
may reasonably request from time to time.

 

10.2.       Books, Records and Inspections.  The Borrowers will, and will cause each of
the Subsidiaries, (i) 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 Borrowers or such Subsidiaries, as the case may be, in
accordance with GAAP; and (ii) permit officers and designated representatives
of the Administrative Agents or any of the Lenders to visit and inspect any of
the properties or assets of the Borrowers and their respective Subsidiaries in
whomsoever’s possession (as to any such assets not in the possession of a
Borrower or such a Subsidiary, to the extent that, following diligent efforts
by such Credit Party, permission is obtained from such possessor) and to
examine (and make copies of or take extracts from) the books of account of the
Borrowers and their respective Subsidiaries and discuss the affairs, finances
and accounts of the Borrowers and their respective Subsidiaries with, and be
advised as to the same by, their officers and independent accountants and
independent actuaries, if any, all at such reasonable times and intervals upon
reasonable notice (except that during the existence of an Event of Default, no
notice shall be required) as the Administrative Agents or any of the Lenders
may request.

 

10.3.       Insurance.  The Borrower shall maintain, and shall cause
each Material Subsidiary to maintain, with financially sound and reputable
independent insurers, insurance with respect to its material properties and
business against loss or damage of the kinds customarily insured against by
Persons engaged in the same or similar business, of such types and in such
amounts as are customarily carried under similar circumstances by such other
Persons.

 

10.4.       Payment of Taxes and
Claims.  The Borrowers will
pay and discharge, and will cause each of the Subsidiaries to pay and
discharge, all taxes, assessments and governmental charges or levies imposed
upon them or upon their income or profits, or upon any properties belonging to
them, prior to the date on which penalties attach thereto, and all lawful
claims which, if unpaid, might become a Lien or charge upon any properties of
the Borrowers or any of their respective Subsidiaries; provided that none of the Borrowers or any of
their respective Subsidiaries shall be required to pay any such tax,
assessment, charge, levy or claim which is being contested in good faith and by
proper proceedings if it has maintained adequate reserves with respect thereto
in accordance with GAAP; and provided, further, that the Borrowers will not be
considered to be in default of any of the provisions of this sentence if the
Borrowers or any of their respective Subsidiaries fails to pay any such amount
or amounts that, individually or in the aggregate, do not

 

101

 

exceed $10,000,000 so long as that matter is being negotiated in good
faith with the applicable taxing authority.

 

10.5.       Corporate Franchises.  The Borrowers will, and will cause each of
the Material Subsidiaries to:

 

(a)           preserve and maintain
in full force and effect its existence and good standing under the laws of its
state or jurisdiction of incorporation;

 

(b)           preserve and maintain
in full force and effect all material governmental rights, privileges,
qualifications, permits, licenses and franchises necessary or desirable in the
normal conduct of its business, except (i) governmental rights, privileges,
qualifications, permits, licenses and franchises the loss of which could not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect and (ii) in connection with transactions permitted by section
11.2;

 

(c)           use reasonable efforts,
in the ordinary course of business, to preserve its business organization and
goodwill; and

 

(d)           preserve or renew all
of its registered patents, trademarks, trade names and service marks, the
non-preservation of which could reasonably be expected to have a Material
Adverse Effect.

 

10.6.       Good Repair.  The Borrowers will, and will cause each of
the Material Subsidiaries to ensure that their properties and equipment used or
useful in their business in whomsoever’s possession they may be, are kept in
good repair, working order and condition, normal wear and tear excepted, and
will make all necessary repairs thereto and renewals and replacements thereof
except where the failure to do so could not reasonably be expected to have a
Material Adverse Effect and except as permitted by section 11.2.  The Borrowers will, and will cause each of
the Material Subsidiaries to use the standard of care typical in the industry
in the operation and maintenance of its facilities.

 

10.7.       Compliance
with Statutes, etc. 
Subject to section 10.8, the Borrowers will, and will cause each
of the Material Subsidiaries to comply with all applicable statutes,
regulations and orders of, and all applicable restrictions imposed by, all
governmental bodies, domestic or foreign, in respect of the conduct of their
business and the ownership of their property, other than those being contested
in good faith by appropriate proceedings, as to which adequate reserves are
established to the extent required under GAAP; provided, however, a failure to comply with such
statutes, regulations, orders and restrictions shall not constitute a breach of
this section 10.7 if such noncompliance could not reasonably be expected
to have a Material Adverse Effect.

 

10.8.       Compliance
with Environmental Laws. 
Notwithstanding, and in addition to, the covenants contained in section
10.7 hereof:

 

(a)           The Borrowers will, and
will cause each of the Subsidiaries to, (i) comply in all respects with all
Environmental Laws applicable to the ownership, lease or use of all Real

 

102

 

Property and personal property now or hereafter owned,
leased or operated by a Borrower or any of its Subsidiaries, and promptly pay
or cause to be paid all costs and expenses incurred in connection with such compliance;
provided, however, that a
failure to comply with such Environmental Laws shall not constitute a breach of
this section 10.8(a) if such noncompliance could not reasonably be
expected to have a Material Adverse Effect; and (ii) keep or cause to be kept
all such Real Property free and clear of any Liens imposed pursuant to such
Environmental Laws which are not permitted under section 11.3.

 

(b)           Without limitation of
the foregoing, if a Borrower or any of its Subsidiaries shall generate, use,
treat, store, release or dispose of, or permit the generation, use, treatment,
storage, release or disposal of, Hazardous Materials on any Real Property now
or hereafter owned, leased or operated by a Borrower or any of its
Subsidiaries, or transport or permit the transportation of Hazardous Materials
to or from any such Real Property, any such action shall be effected in
compliance with all Environmental Laws applicable thereto; provided, however, a failure of any such action to
comply with such Environmental Laws shall not constitute a breach of this section
10.8(b) if such noncompliance could not reasonably be expected to have a
Material Adverse Effect.

 

(c)           If required to do so
under any applicable order of any governmental agency, the Borrowers will
undertake, and cause each of the Subsidiaries to undertake or cause, any clean
up, removal, remedial or other action necessary to remove and clean up any
Hazardous Materials from any Real Property owned, leased or operated by a
Borrower or any of its Subsidiaries in accordance with the requirements of all
applicable Environmental Laws and in accordance with such orders of all
governmental authorities, except to the extent that such Borrower or such
Subsidiary is contesting such order in good faith and by appropriate proceedings
and for which adequate reserves have been established to the extent required by
GAAP; provided,
however, that a
failure to so clean-up, remove, remediate or take such action necessary to
remove and clean up such Hazardous Materials shall not constitute a breach of
this section 10.8(c) if such failure could not reasonably be expected to
have a Material Adverse Effect.

 

10.9.       Fiscal Years, Fiscal
Quarters.  None of the
Borrowers or any of their respective Material Subsidiaries shall change its
fiscal year or fiscal quarters, other than the fiscal year or fiscal quarters
of a person which becomes a Material Subsidiary, made at the time such person
becomes a Material Subsidiary to conform to the Borrowers’ fiscal year and
fiscal quarters.

 

10.10.     Hedge Agreements, etc.  In the event any of the Borrowers or any of
their respective Material Subsidiaries determine to enter into a Hedge
Agreement they may do so, provided that such Hedge Agreement is entered to for the
purpose of hedging or mitigating risks to which a Borrower or any Material
Subsidiary is exposed in the conduct of its business or the management of its
liabilities and, when considered in light of other outstanding Hedge Agreements
to which that Borrower or that Material Subsidiary is a party, does not expose
that Borrower or that Material Subsidiary, as the case may be, to predominantly
speculative risks unrelated to the amount of assets, Indebtedness or other
liabilities intended to be subject to coverage on a notional basis under such
Hedge Agreement.

 

103

 

10.11.     Senior Debt.  The Borrowers will at all times ensure that
(a) the claims of the Lenders in respect of the Obligations of the Credit
Parties will not be subordinate to, and will in all respects at least rank  pari passu
with, the claims of every other senior unsecured creditor of the Credit
Parties, and (b) any Indebtedness subordinated in any manner to the claims of
any other senior unsecured creditor of the Credit Parties will be subordinated
in like manner to such claims of the Lenders.

 

10.12.     Security Documents.

 

(a)           Except with respect to
the Foreign Subsidiaries the capital stock of which has been pledged in
accordance with section 10.12(b), in order to secure the Obligations of
the Borrowers, the Borrowers will cause any Domestic Subsidiary and any Foreign
Subsidiary that is a Material Subsidiary created or acquired by a Borrower, or
which becomes a Material Subsidiary, after the Effective Date to execute and
deliver to the Administrative Agents a Guaranty substantially in the form
attached as Exhibit G-1 and G-2, as applicable

 

(b)           With the approval of
the Administrative Agents, which approval shall not be unreasonably withheld,
in lieu of providing a Guaranty as contemplated by section 10.12(a), at
the option of the Borrowers, the Borrowers will pledge as collateral to the
Administrative Agents, as collateral agents, pursuant to a Pledge Agreement
substantially in the form attached as Exhibit F, 65% of the capital
stock of, or other equity or ownership interest in, any Foreign Subsidiary that
is a Material Subsidiary created or acquired by a Borrower, or which becomes a
Material Subsidiary of a Borrower, after the Effective Date, provided  that in each
such case, the Borrowers are able to demonstrate to the Administrative Agents
that providing a Guaranty with respect to such Foreign Subsidiaries as
contemplated by this Agreement would have a material adverse tax consequence to
such Borrowers or to such Foreign Subsidiaries.  The above-described pledges of capital stock shall grant to the
Administrative Agents, as collateral agents, and such Borrower shall execute
such documents and take such other actions as deemed by the Administrative
Agents to be necessary or appropriate to effect a first priority perfected Lien
on 65% of the capital stock of each such Foreign Subsidiary that is owned by a
Borrower or any Domestic Subsidiary.

 

10.13.     Use of Proceeds.  The Borrowers will use the proceeds of the Loans (i)
to pay the purchase price for the Thomas Interests under and pursuant to the
Purchase Agreement, (ii) for Consolidated Capital Expenditures, (iii) for
Permitted Acquisitions or (iv) for working capital and other general corporate
purposes, in each case not in contravention of any applicable law, statute,
rule, regulation, order, writ, injunction or decree of any court or
governmental instrumentality or in contravention of any of the Credit
Documents.

 

SECTION
11.       NEGATIVE COVENANTS.

 

The Borrowers, on a joint and several basis, hereby covenant
and agree that until such time as the Total Commitment has been terminated, no
Notes are outstanding, there are no Domestic Facility Letter of Credit
Outstandings, there are no Canadian Facility Letter of Credit Outstandings, and
the Loans, together with interest and Fees hereunder and all obligations in
respect of Letters of Credit and all other Obligations, have been indefeasibly
paid in full:

 

104

 

11.1.       Changes in Business.  None of the Borrowers nor any of their
respective Material Subsidiaries will engage in any other business if, as a
result, the general nature of the business which would then be engaged in by
that Borrower or that Material Subsidiary, as the case may be, would be
substantially changed from the general nature of the business engaged in by a
Borrower or any of its Material Subsidiaries on the date hereof (such business
being referred to in this section 11.1 as the “principal business”).  Notwithstanding the foregoing, the Borrowers
or any of their respective Material Subsidiaries may engage in any business
other than the principal business if (i) the consolidated assets of all such
other businesses account for less than fifteen percent (15%) of the
consolidated assets of Genlyte Group and its Subsidiaries, calculated on a
consolidated basis in accordance with GAAP, and (ii) the operations of all such
other businesses in the current fiscal year are expected to represent, or in
the most recent fiscal year represented, less than fifteen percent (15%) of the
earnings before interest, taxes, depreciation and amortization generated by
Genlyte Group and its Subsidiaries, calculated on a consolidated basis in
accordance with GAAP.

 

11.2.       Consolidation, Merger,
Acquisitions, Asset Sales, etc. 
The Borrowers will not, and will not permit any Material Subsidiary to,
(1) wind up, liquidate or dissolve their affairs, other than the dissolution of
GTG Nova Scotia and GTG International Acquisitions LP promptly following the
Closing Date, (2) enter into any transaction of merger or consolidation, (3)
make or otherwise effect any Acquisition, (4) sell or otherwise dispose of any
of their property or assets outside the ordinary course of business, other than
the sale of Receivables Facility Assets under a Qualified Receivables
Transaction, or otherwise make or otherwise effect any Asset Sale, or (5) agree
to do any of the foregoing at any future time, except that the following transactions shall
be permitted under this section 11.2:

 

(a)           Certain Intercompany Mergers, etc.  If no Default or Event of Default shall have
occurred and be continuing or would result therefrom,

 

(i)            the merger,
consolidation or amalgamation of any Material Subsidiary of a Borrower with or
into a Borrower, provided
a Borrower is the surviving or continuing or resulting Person;

 

(ii)           the merger,
consolidation or amalgamation of any Material Subsidiary with or into another
Material Subsidiary;

 

(iii)          the merger,
consolidation or amalgamation of any Material Subsidiary of a Borrower that is
not a Guarantor with or into another Material Subsidiary of a Borrower, provided that the
surviving or continuing or resulting Person is a Wholly-Owned Material
Subsidiary that is a Domestic Subsidiary directly owned by a Borrower or a
Guarantor that is a Wholly-Owned Material Subsidiary of a Borrower;

 

(iv)          the merger,
consolidation or amalgamation of any Domestic Facility Guarantor with or into
another Domestic Facility Guarantor;

 

(v)           the merger,
consolidation or amalgamation of any Canadian Facility Guarantor with or into
another Canadian Facility Guarantor;

 

105

 

(vi)          the transfer or other
disposition of any property by any Domestic Facility Guarantor to a Domestic
Facility Borrower or to another Domestic Facility Guarantor; and

 

(vii)         the transfer or other
disposition of any property by any Canadian Facility Guarantor to a Canadian
Facility Borrower or to another Canadian Facility Guarantor.

 

(b)           Acquisitions.  If no Default or Event of Default shall have occurred and be
continuing or would result therefrom, a Borrower or any of its Material
Subsidiaries may make any Acquisition that is a Permitted Acquisition, provided that all of
the conditions contained in the definition of the term Permitted Acquisition
are satisfied.

 

(c)           Permitted Dispositions.  If no Default or Event of Default shall have
occurred and be continuing or would result therefrom, a Borrower or any of its
Subsidiaries may (i) sell any property, land or building (including any related
receivables or other intangible assets) to any person, (ii) sell the entire
capital stock (or other equity interests) and Indebtedness of any Subsidiary,
other than a Material Subsidiary, owned by a Borrower or any other Subsidiary,
other than a Material Subsidiary, to any person, or (iii) permit any
Subsidiary, other than a Material Subsidiary, to be merged or consolidated with
a person which is not an Affiliate of Genlyte Group, or (iv) consummate any
other Asset Sale with a person who is not a Subsidiary of that Borrower; provided that:

 

(A)          the consideration for
such transaction (1) represents fair value (as reasonably determined by
management of Genlyte Group), and (2) does not exceed, when aggregated with the
consideration of any other transaction or transactions of any Borrower or any
of its Subsidiaries during the then current fiscal year permitted under this section
11.2(c), twenty percent (20%) of the Consolidated Net Worth as of the date
of such transaction,

 

(B)           in the case of any such
transaction involving consideration equal to or in excess of $25,000,000, at
least five Business Days prior to the date of completion of such transaction
the Borrowers shall have delivered to the Administrative Agents an officer’s
certificate executed on behalf of the Borrowers by Principal Officers of the
Borrowers, which certificate shall contain (1) a description of the proposed
transaction, the date such transaction is scheduled to be consummated, the
estimated purchase price or other consideration for such transaction, (2) a
certification that no Default or Event of Default has occurred and is
continuing, or would result from consummation of such transaction, and (3)
which shall (if requested by the Administrative Agents) include a certified
copy of the draft or definitive documentation pertaining thereto, and

 

(C)           contemporaneously with
the completion of such transaction the Borrowers prepay their Loans as and to
the extent required by section 7.2 hereof; and

 

106

 

provided, further, that sales or other
dispositions of inventory in the ordinary course of business or of obsolete or
worn out equipment or fixtures in the ordinary course of business may be
effected without compliance with the above provisions and the amount of any
such sales or other dispositions shall be excluded from any computations under
this section 11.2(c).

 

(d)           Leases. 
The Borrowers or any of their respective Material Subsidiaries may enter
into leases of property or assets not constituting Acquisitions, provided such leases
are not otherwise in violation or could cause a violation of section 11.11
of this Agreement or any other provision of this Agreement.

 

(e)           Capital Expenditures:  The Borrowers and their respective Material
Subsidiaries shall be permitted to make Consolidated Capital Expenditures.

 

(f)            Permitted Investments.  The Borrowers and their respective Material
Subsidiaries shall be permitted to make the investments permitted pursuant to section
11.5.

 

11.3.       Liens.  The Borrowers will not, and will not permit any of the Material
Subsidiaries to, create, incur, assume or suffer to exist any Lien upon or with
respect to any property or assets of any kind (real or personal, tangible or
intangible) of the Borrowers or any of their respective Material Subsidiaries
whether now owned or hereafter acquired, or sell any such property or assets
subject to an understanding or agreement, contingent or otherwise, to
repurchase such property or assets (including consignment arrangements and
including sales of accounts receivable or notes with or without recourse to the
Borrowers or any of their respective Material Subsidiaries, other than for
purposes of collection of delinquent accounts in the ordinary course of
business) or assign any right to receive income, or file or permit the filing
of any financing statement under the UCC or any other similar notice of Lien
under any similar recording or notice statute, except that the following Liens shall be
permitted under this section 11.3:

 

(a)           Standard Permitted Liens.  The Liens granted to the Administrative
Agents on behalf of the Lenders and the Standard Permitted Liens;

 

(b)           Existing Liens, etc.  Liens (i) in existence on the Effective Date
which are listed, and the Indebtedness secured thereby and the property subject
thereto on the Effective Date described, in Annex IV, or (ii) arising
out of the refinancing, extension, renewal or refunding of any Indebtedness
secured by any such Liens, provided that the principal amount of such Indebtedness
is not increased and such Indebtedness is not secured by any additional assets;

 

(c)           Purchase Money Liens.  Liens which are placed upon fixed or capital
assets, acquired, constructed or improved by a Borrower or any of its Material
Subsidiaries, including, without limitation, Capital Lease obligations, provided that (A)
such Liens secure Indebtedness permitted by section 11.4(c), (B) such
Liens and the Indebtedness secured thereby are incurred prior to or within 20
days after such acquisition or the completion of such construction or
improvement, (C) the Indebtedness secured thereby does not exceed 100% of the
cost of acquiring, constructing or improving such fixed or capital assets; and
(D)

 

107

 

such Liens shall not apply to any other property or
assets of the Borrowers or any of their respective Material Subsidiaries;

 

(d)           Import Letters of Credit.  Liens securing obligations in respect of
import letters of credit incurred by Genlyte Thomas or Genlyte Group in the ordinary
course of its business;

 

(e)           Banker’s Liens, etc. 
Liens arising solely by virtue of any statutory or common law
provision relating to banker’s liens, rights of set-off or similar rights and
remedies as to deposit accounts or other funds maintained with a creditor
depository institution; provided that (i) such deposit account is not a
dedicated cash collateral account and is not subject to restrictions against
access by the Borrowers or the Subsidiaries, as the case may be, in excess of
those set forth by regulations promulgated by the Board of Governors of the
Federal Reserve System, and (ii) no security interest in such deposit account
(other than any such banker’s liens, rights of set-off or similar rights or
remedies arising at law) is held by the depository institution or any other
Person;

 

(f)            Liens of After-Acquired Subsidiaries.  Liens on the property or assets
of a person that becomes a Material Subsidiary after the date hereof securing
Indebtedness permitted by section 11.5(i), provided that (i) such Liens existed at the
time such person became a Material Subsidiary were incurred in the ordinary
course of business and were not created in anticipation of the Acquisition,
(ii) any such Lien does not by its terms cover any property or assets after the
time such person becomes a Material Subsidiary which were not covered
immediately prior thereto, (iii) such Lien does not by its terms secure any
Indebtedness other than Indebtedness existing immediately prior to the existing
time as such person becomes a Material Subsidiary, and (iv) the aggregate
amount of all Indebtedness secured by all such Liens does not exceed the amount
that is permitted under section 11.4(c); and

 

(g)           Receivables Securitizations.  Liens, if any, on Receivables Facility
Assets resulting from a Qualified Receivables Transaction.

 

11.4.       Indebtedness.  The Borrowers will not, and will not permit
any of the Material Subsidiaries to, contract, create, incur, assume or suffer
to exist any Indebtedness of the Borrowers or any of their respective Material
Subsidiaries, except
that the following shall be permitted under this section 11.4:

 

(a)           Credit Documents:  Indebtedness incurred under this Agreement and the other Credit
Documents;

 

(b)           Existing Indebtedness:  existing Indebtedness; and any refinancing,
extension, renewal or refunding of any such Existing Indebtedness, provided that any
increase in the principal amount thereof shall be included in the aggregate
amount of additional Indebtedness that may be incurred under section 11.4(h)
(irrespective of whether such Indebtedness is secured) and may only be
increased to the extent and by the amount permitted by section 11.4(h);

 

108

 

(c)           Certain Priority Debt:  to the extent not permitted by the foregoing
clauses,

 

(i)            Indebtedness
consisting of obligations under Synthetic Leases of a Borrower and any of its
Material Subsidiaries,

 

(ii)           Indebtedness of the
Borrowers and any of their respective Material Subsidiaries secured by a Lien
referred to in either of section 11.3(c) or 11.3(f), in an
aggregate amount outstanding, as to both such sections together, not to exceed
$10,000,000,

 

(iii)          Indebtedness of the
Borrowers and any of their respective Material Subsidiaries under industrial
revenue or other municipal bonds with an aggregate principal amount outstanding
at any time not to exceed  $25,000,000,

 

(iv)          the obligations of
Genlyte Group and its Subsidiaries (including, without limitation, the
Receivables Facility Subsidiary) under a Qualified Receivables Transaction,
which shall be deemed to include, without limitation, the Indebtedness
evidenced by the Receivables Purchase Note and any other obligations under a
Qualified Receivables Transaction which would be characterized as principal or interest
if such Qualified Receivables Transaction had been structured as a secured
lending transaction rather than a purchase, and

 

(v)           any refinancing,
extension, renewal or refunding of any such Indebtedness, provided that any increase in the principal
amount thereof shall be included in the aggregate amount of additional
Indebtedness that may be incurred under section 11.4(h) (irrespective of
whether such Indebtedness is secured) and may only be increased to the extent
and by the amount permitted by section 11.4(h),

 

provided that at the time of any
incurrence thereof after the date hereof, and after giving effect thereto, the
Borrowers would be in compliance with sections 11.7 and 11.8, and
no Default under section 12.1(a) or Event of Default shall have occurred
and be continuing or would result therefrom;

 

(d)           Intercompany Debt:  unsecured Indebtedness of any of the
Material Subsidiaries to any Borrower or to another Material Subsidiary;

 

(e)           Hedge Agreements:  Indebtedness of the Borrowers and any of their respective
Material Subsidiaries under Hedge Agreements that do not contravene the
requirements of section 10.10;

 

(f)            Guaranty Obligations:  any Guaranty Obligations permitted by section
11.5;

 

(g)           Leases: 
Indebtedness of the Borrowers and any of their respective Material
Subsidiaries in connection with leases that do not contravene the restrictions
of section 11.11; and

 

109

 

(h)           Additional Unsecured Debt:  additional unsecured Indebtedness of the Borrowers and
any of their respective Material Subsidiaries, with terms and conditions no
more restrictive or burdensome to the Borrowers and any of their respective
Material Subsidiaries than the terms and conditions contained in this Agreement
(provided that a maturity date earlier than the Maturity Date shall not be
construed as more restrictive) the aggregate principal amount outstanding at
any time not in excess of $20,000,000; provided that at the time of incurrence thereof, and
after giving effect thereto, (i) the Borrowers would be in compliance with sections
11.7, and 11.8; and (ii) no Default under section 12.1(a) or
Event of Default shall have occurred and be continuing or would result
therefrom.

 

11.5.       Advances,
Investments, Loans and Guaranty Obligations.  The Borrowers will not, and will not permit
any of the Material Subsidiaries to, (1) lend money or credit or make advances
in the nature of credit to any person, other than trade credit extended in the
ordinary course of business of such Credit Parties, (2) purchase or acquire any
stock, obligations or securities of, or any other interest in, or make any
capital contribution to, or other investment in, any person, (3) create,
acquire or hold any Material Subsidiary, (4) be or become a party to any joint
venture, member of a limited liability company or partner of a partnership, or
(5) be or become obligated under any Guaranty Obligations (other than those
created in favor of the Lenders pursuant to the Credit Documents), except that the
following shall be permitted under this section 11.5:

 

(a)           the Borrowers or any of
their respective Material Subsidiaries may invest in cash and Cash Equivalents;

 

(b)           any endorsement of a
check or other medium of payment for deposit or collection, or any similar
transaction in the normal course of business;

 

(c)           the Borrowers and their
respective Material Subsidiaries may acquire and hold receivables owing to them
in the ordinary course of business and payable or dischargeable in accordance
with customary trade terms (including receivables evidenced by a promissory
note executed after the account debtor in question fails to make payments when
due);

 

(d)           loans and advances to
employees for business-related travel expenses, moving expenses, costs of
replacement homes, business machines or supplies, automobiles and other similar
expenses, in each case incurred in the ordinary course of business and
consistent with past practice;

 

(e)           the existing loans,
advances, investments and guarantees described in Annex V hereto;

 

(f)            investments of the
Borrowers and their respective Material Subsidiaries in Hedge Agreements that
comply with section 10.10;

 

(g)           existing investments in
any Material Subsidiaries shall be permitted, and the creation and holding of
any Wholly-Owned Material Subsidiary and any additional investments in any
current or future Wholly-Owned Material Subsidiary, so long as the

 

110

 

Borrowers comply with section 10.12(b) in
connection with the creation of any such Subsidiary and with section
10.12(a) by causing the Subsidiaries referenced therein to execute and
deliver a Guaranty, or pledge its capital stock to the extent permitted by section
10.12(b);

 

(h)           intercompany loans and
advances permitted by section 11.4(d);

 

(i)            the Acquisitions
permitted by section 11.2; and loans, advances and investments of any
person which are outstanding at the time such person becomes a Material
Subsidiary as a result of an Acquisition permitted by section 11.2 and
were incurred in the ordinary course of business and not created in
contemplation thereof, but not any increase in the amount thereof;

 

(j)            any of the following
in connection with a Qualified Receivables Transaction: (i) Indebtedness of the
Receivables Facility Subsidiary evidenced by a Receivables Purchase Note held
by Genlyte Thomas or certain of its Subsidiaries and (ii) subject to the
limitation set forth in section 11.6(d), any extension of credit or
capital contribution to, or other investment in, the Receivables Facility
Subsidiary made by Genlyte Group (or any Material Subsidiary that is the
immediate parent entity of the Receivables Facility Subsidiary after the
Closing Date);

 

(k)           any unsecured Guaranty
Obligation incurred by a Borrower or any of its Material Subsidiaries with
respect to (i) Indebtedness of a Wholly-Owned Subsidiary which is permitted
under section 11.4 without restriction upon the ability of the Borrowers
or any of their respective Subsidiaries to guarantee the same, or (ii) other
obligations of a Wholly-Owned Subsidiary, including, without limitation,
obligations under Hedge Agreements, which are not prohibited by this Agreement;
and

 

(l)            any other Guaranty
Obligations, loans, advances, investments (whether in the form of cash or
contribution of property, and if in the form of a contribution of property,
such property shall be valued for purposes of this clause at the fair value
thereof as reasonably determined by a Borrower), in or to any corporation,
partnership, limited liability company, joint venture or other business entity,
not otherwise permitted by the foregoing clauses, made after the date hereof, provided that at the
time of making any such loan, advance or investment, no Event of Default or
Default shall have occurred and be continuing, or would result therefrom.

 

11.6.       Restricted Payments.  The Borrowers shall not, and shall not
permit any of the Material Subsidiaries to, declare or make any dividend
payment or other distribution of assets, properties, cash, rights, obligations
or securities on account of any shares of any class of its capital stock or
membership interests, or purchase, redeem or otherwise acquire for value any
shares of any class of its capital stock or its membership interests or any
warrants, rights or options to acquire such capital stock membership interests,
now or hereafter outstanding; except that the following shall be permitted under this section
11.6:

 

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(a)           the declaration and
making of distributions payable solely as capital stock, membership interests
or partnership interests;

 

(b)           the purchase,
redemption or other acquisition of a Credit Party’s capital stock, membership
interests or partnership interests or warrants or options to acquire any such
interests with the proceeds received from the substantially concurrent issue of
new capital stock, membership interests or partnership interests;

 

(c)           the declaration and
making of dividend payments or other cash distributions by any Material
Subsidiary of a Borrower to such Borrower (whether directly or through another
Subsidiary of such Borrower); and

 

(d)           any loan, distribution
or transfer, however characterized, that Genlyte Group (or any Material
Subsidiary that is the immediate parent entity of the Receivables Facility
Subsidiary after the Closing Date) may make to the Receivables Facility
Subsidiary in connection with a Qualified Receivables Transaction; provided
that the aggregate amount of all loans, distributions and other transfers by
Genlyte Group (or such Material Subsidiary that is such immediate parent entity
after the Closing Date) to the Receivables Facility Subsidiary at any time
outstanding shall not exceed the aggregate of (i) the aggregate amount of
loans, distributions and transfers outstanding on the Closing Date and (ii) the
greater of (A) Ten Million Dollars ($10,000,000) and (B) an amount equal to 10%
of the remainder of (I) the outstanding balance at such time of all Receivables
that have been sold by Genlyte Thomas and its Subsidiaries to the Receivables
Facility Subsidiary, minus (II) the sum of the aggregate “Commitments” (as
defined in the Qualified Receivables Purchase Agreement) at such time and the
“Aggregate Reserves” (as defined in the Qualified Receivables Purchase
Agreement) as if such “Commitments” were fully utilized.

 

11.7        Ratio of
Consolidated Total Debt to Consolidated EBITDA.  The Borrowers shall not permit the ratio of
(a) the amount of Consolidated Total Debt as of the end of any Testing Period
(commencing with the Testing Period ending September 30, 2004) to (b)
Consolidated EBITDA for such Testing Period to exceed 3.25 to 1.00.

 

11.8.       Consolidated
Interest Coverage Ratio. 
The Borrowers will not permit the Consolidated Interest Coverage Ratio
as of the end of any Testing Period (commencing with the Testing Period ending
September 30, 2004) to be less than 3.00 to 1.00.

 

11.9.       Transactions
with Affiliates. 
The Borrowers will not, and will not permit any Material Subsidiary that
is a Credit Party to, enter into any transaction or series of transactions with
any Affiliate of any such Person (other than, in the case of (i) a Borrower,
another Borrower or any Wholly-Owned Material Subsidiary that is a Guarantor or
a Pledged Entity, (ii) a Material Subsidiary that is a Guarantor or a Pledged
Entity, a Borrower or another Wholly-Owned Material Subsidiary that is a
Guarantor or a Pledged Entity), other than pursuant to the reasonable
requirements of a Borrower’s, or such Subsidiary’s, as applicable, business and
upon fair and reasonable terms no less favorable to such Borrower or such
Subsidiary than would be obtained in a comparable arm’s-length transaction with
a person other than an Affiliate, except for a Qualified Receivables Transaction and the
transactions described in Annex VI. 
The Borrowers will not permit

 

112

 

any Material Subsidiary that is not a Guarantor or a Pledged Entity to
enter into any transaction or series of transactions with any Affiliate of any
such Person (other than a Borrower or a Wholly-Owned Material Subsidiary of a
Borrower), other than pursuant to the reasonable requirements of such Material
Subsidiary’s business and upon fair and reasonable terms no less favorable to
such Material Subsidiary than would be obtained in a comparable arm’s-length
transaction with a person other than an Affiliate, except for the transactions described in Annex
VI.

 

11.10.     Plan Terminations, Minimum
Funding, etc.

 

(a)           Domestic
Benefit Plan Terminations, Minimum Funding, etc.  The Domestic Facility Borrowers will not, and will not
permit any ERISA Affiliate to, (i) terminate any Plan or Plans so as to result
in an additional net current liability of the Borrowers or any ERISA Affiliate
to the PBGC in excess of, in the aggregate, an amount that reasonably could be
expected to have a Material Adverse Effect, (ii) permit to exist one or more
events or conditions which reasonably present a material risk of the
termination by the PBGC of any Plan or Plans with respect to which the
Borrowers or any ERISA Affiliate would, in the event of such termination, incur
liability to the PBGC in excess of such amount in the aggregate, or (iii) fail
to comply in any material respect with the minimum funding standards of ERISA
and the Code with respect to any Plan.

 

(b)           Canadian
Benefit Plan Terminations, Minimum Funding, etc.  The Canadian Facility Borrowers will not, and will not
permit any of their respective Subsidiaries to, (i) terminate, in whole or in
part, any Employee Plan or Employee Plans so as to result in additional
liabilities or accelerated funding obligations of the Borrowers or their
respective Subsidiaries in respect of such Employee Plan or Employee Plans in
excess of, in the aggregate, an amount that reasonably could be expected to
have a Material Adverse Effect, (ii) permit to exist one or more events or
conditions which reasonably present a material risk of the termination, in
whole or in part, of any Employee Plan or Employee Plans by any applicable
regulator which would result in additional liabilities or accelerated funding
obligations of the Borrowers or their respective Subsidiaries under such
Employee Plan or Employee Plans in excess of, in the aggregate, an amount that
reasonably could be expected to have a Material Adverse Effect, or (iii) fail
to comply in any material respect with the minimum funding requirements for any
Employee Plan imposed under applicable laws or the terms of such Employee Plan.

 

11.11.     Certain Leases.  The Borrowers shall not, and shall permit
any of the Material Subsidiaries to, create or suffer to exist any obligations
for the payment of rent for any property under lease or agreement to lease,
except that the following leases shall be permitted under this section 11.11:

 

(a)           leases of the Borrowers
and their respective Material Subsidiaries in existence on the Closing Date and
any renewal, extension or refinancing thereof;

 

(b)           Operating Leases
entered into by the Borrowers or any of their respective Material Subsidiaries
after the Closing Date in the ordinary course of business; and

 

113

 

(c)           leases entered into by
the Borrowers, or any of their respective Material Subsidiaries after the
Closing Date pursuant to Sale-Leaseback Transactions consistent with past practice.

 

11.12.     Limitation
on Certain Restrictive Agreements; Qualified Receivables Transaction
Documents.

 

(a)           Restrictive Agreements.  The Borrowers will not, and will not permit
any of the Material Subsidiaries to, directly or indirectly, enter into, incur
or permit to exist or become effective, any “negative pledge” covenant or other
similar agreement, restriction or arrangement otherwise named that prohibits,
restricts or imposes any condition upon (a) the ability of a Borrower or any of
its Material Subsidiaries to create, incur or suffer to exist any Lien upon any
of its property or assets as security for Indebtedness, or (b) the ability of a
Borrower or any of Material Subsidiaries to pay dividends or make any other
distributions on its capital stock or any other interest or participation in
its profits owned by a Borrower or any of its Material Subsidiaries, or pay any
Indebtedness owed to a Borrower, or any of its Material Subsidiaries, or to
make loans or advances to a Borrower or any of its Material Subsidiaries, or
transfer any of its property or assets to a Borrower, or any of its Material
Subsidiaries, except
for such restrictions existing under or by reason of (i) applicable law, (ii)
this Agreement and the other Credit Documents, (iii) customary provisions
restricting subletting or assignment of any lease governing a leasehold
interest, (iv) provisions in any agreement or agreements (including, without
limitation, licenses, leases, agreements relating to the purchase or sale of
any property, agreements relating to providing or obtaining any services)
prohibiting or limiting the right to assign or transfer such agreement(s) or
any rights therein, (v) customary provisions restricting the transfer or
further encumbering of assets subject to Liens that are permitted under section
11.3(b) or (c) from the restrictions and prohibitions otherwise
contained in section 11.3, (vi) customary restrictions affecting only a
Material Subsidiary under any agreement or instrument governing any of the
Indebtedness of a Material Subsidiary permitted pursuant to section 11.4,
excluding any restriction on dividends or distributions to its stockholders,
members or other equity holders (vii) restrictions affecting any Foreign
Subsidiary under any agreement or instrument governing any Indebtedness of such
Foreign Subsidiary permitted pursuant to section 11.4, and customary
restrictions contained in “comfort” letters and guarantees of any such
Indebtedness, excluding any restriction on dividends or distributions to its
stockholders, (viii) any Lien permitted by section 11.3, (ix) any
Operating Lease or Capital Lease, insofar as the provisions thereof limit
grants of a security interest in, or other assignments of, the related
leasehold interest to any other person, and (x) pursuant to the Qualified
Receivables Sale Agreement and the Qualified Receivables Purchase Agreement.

 

(b)           Qualified Receivables Transaction Documents.  None of Genlyte Group, Genlyte Thomas or any
of their Subsidiaries shall amend, modify or supplement any terms or provisions
contained in any of the documents evidencing, securing or otherwise governing a
Qualified Receivables Transaction (including, without limitation, the Qualified
Receivables Sale Agreement, the Qualified Receivables Purchase Agreement or any
of the other Transaction Documents), unless (i) Genlyte Group or Genlyte Thomas
shall have delivered to the Administrative Agents and the Lenders the proposed
form of any such amendment,

 

114

 

modification or supplement not less than five (5)
Business Days prior to the proposed effective date thereof (or such lesser
period as the Administrative Agents may approve in writing) and (ii) after
giving effect to such amendment, modification or supplement, the Qualified
Receivables Transaction, as evidenced, secured or otherwise governed by such
documents (including, without limitation, the Qualified Receivables Sale
Agreement, the Qualified Receivables Purchase Agreement and the other
Transaction Documents), as so amended, modified or supplemented, will meet all
of the criteria set forth in clauses (ii) through (x), inclusive, of the
definition of Qualified Receivables Facility Requirements.

 

11.13.     Accounting Changes.  The Borrowers shall not, and
shall not permit any of their respective Material Subsidiaries to, make any
significant change in accounting treatment or reporting practices, except as
required by GAAP.

 

SECTION
12.       EVENTS OF DEFAULT.

 

12.1.       Events of Default.  Any of the following specified events (each
an “Event of Default”)
shall constitute an Event of Default hereunder:

 

(a)           Payments: 
a Borrower shall (i) default in the payment when due of any principal of
the Loans; or (ii) default, and such default shall continue for three or more
days, in the payment when due of any interest on the Loans or any Fees or any
other amounts owing hereunder or under any other Credit Document; or

 

(b)           Representations, etc.:  any representation, warranty or statement
made by the Borrowers or any other Credit Party herein or in any other Credit
Document or in any statement or certificate delivered or required to be
delivered pursuant hereto or thereto shall prove to be untrue in any material
respect on the date as of which made or deemed made; or

 

(c)           Certain Covenants:  a Borrower shall default in the due
performance or observance by it of any term, covenant or agreement contained in
section 10.1(e)(i), or section 11 of this Agreement; or

 

(d)           Other Covenants:  a Borrower shall default in the due performance or observance of
any term, covenant or agreement contained in this Agreement or any other Credit
Document, other than those referred to in section 12.1(a) or (b)
or (c) above, and such default is not remedied within 30 days after the
earlier of (i) an officer of a Borrower obtaining actual knowledge of such
default and (ii) a Borrower receiving written notice of such default from
either Administrative Agent or the Required Lenders (any such notice to be
identified as a “notice of default “ and to refer specifically to this
paragraph); or

 

(e)           Cross Default Under Other Agreements:  a Borrower or any of its Subsidiaries shall
(i) permit the occurrence of an “event of default” (or equivalent event or
condition otherwise named) under a Specified Hedge Agreement or otherwise shall
default in the observance or performance of any agreement or condition under a
Specified Hedge Agreement (and all grace periods, if any, applicable to such
observance, performance or

 

115

 

condition shall have expired), the effect of which
“event of default” or other default is to cause or to permit the Lender or
Affiliate thereof that is a party to such Specified Hedge Agreement to require
an early termination thereof, (ii) default in any payment with respect to any
Indebtedness (other than the Obligations) in excess, in the aggregate, of
$10,000,000 owed to any Lender or any of their Affiliates, or to any other
person, and such default shall continue after the applicable grace period, if
any, specified in the agreement or instrument relating to such Indebtedness in
excess, in the aggregate, of $10,000,000, or (iii) default in the observance or
performance of any agreement or condition relating to any such Indebtedness in
excess, in the aggregate, of $10,000,000 or contained in any instrument or
agreement evidencing, securing or relating thereto (and all grace periods
applicable to such observance, performance or condition shall have expired), or
any other event shall occur or circumstance shall exist, the effect of which
default or other event or circumstance is to cause, or to permit the holder or
holders of such Indebtedness in excess, in the aggregate, of $10,000,000 (or a
trustee or agent on behalf of such holder or holders) to cause any such Indebtedness
in excess, in the aggregate, of $10,000,000 to become due prior to its stated
maturity; or any such Indebtedness in excess, in the aggregate, of $10,000,000
of a Borrower or any of its Subsidiaries shall be declared to be due and
payable, or shall be required to be prepaid (other than by a regularly
scheduled required prepayment or redemption, prior to the stated maturity
thereof); or

 

(f)            Judgments: 
one or more judgments or decrees shall be entered against a Borrower, or
any of its Subsidiaries involving a liability equal to or more than $25,000,000
in the aggregate for all such judgments and decrees for the Borrowers and their
respective Subsidiaries (excluding any judgment covered by insurance as to
which the carrier has adequate claims paying ability and has not reserved its
rights), and any such judgments or decrees shall not have been vacated,
discharged or stayed or bonded pending appeal within 30 days from the entry
thereof; or

 

(g)           Bankruptcy, etc.:  a Borrower or any of the Material Subsidiaries shall commence a
voluntary case concerning itself under Title 11 of the United States Code
entitled “Bankruptcy,” as now or hereafter in effect, or any successor thereto
(the “Bankruptcy Code”)
or an equivalent statute under the laws of Canada or any province thereof; or
an involuntary case is commenced against a Borrower or any of the Material
Subsidiaries and the petition is not controverted within 30 days, or is not
dismissed within 45 days, after commencement of the case; or a custodian (as
defined in the Bankruptcy Code) or equivalent appointee under the laws of
Canada or any province thereof is appointed for, or takes charge of, all or
substantially all of the property of a Borrower or any of the Material
Subsidiaries; or any of the Borrowers or a Material Subsidiary commences
(including by way of applying for or consenting to the appointment of, or the
taking of possession by, a rehabilitator, receiver, custodian, trustee,
conservator or liquidator (collectively, a “conservator”) of itself or all or any
substantial portion of its property) any other proceeding under any
reorganization, arrangement, adjustment of debt, relief of debtors,
dissolution, insolvency, liquidation, rehabilitation, conservatorship or
similar law of any jurisdiction whether now or hereafter in effect relating to
a Borrower or any of the Material Subsidiaries; or any such proceeding is
commenced against a Borrower or any of the Material Subsidiaries to the extent
such proceeding is consented to by such person or remains undismissed for a

 

116

 

period of 45 days; or a Borrower or any of the
Material Subsidiaries is adjudicated insolvent or bankrupt; or any order of
relief or other order approving any such case or proceeding is entered; or a
Borrower or any of the Material Subsidiaries suffers any appointment of any
conservator or the like for it or any substantial part of its property which
continues undischarged or unstayed for a period of 45 days; or a Borrower or
any of the Material Subsidiaries makes a general assignment for the benefit of
creditors; or any corporate (or similar organizational) action is taken by a
Borrower or any of the Material Subsidiaries for the purpose of effecting any
of the foregoing; or

 

(h)           ERISA: 
(1) any of the events described in clauses (i) through (viii) of section
10.1(f) or clauses (i) through (iv) of section 10.1(g) shall have
occurred; or (2) there shall result from any such event or events the
imposition of a lien, the granting of a security interest, or a liability or a
material risk of incurring a liability; and (3) any such event or events or any
such lien, security interest or liability, individually, and/or in the
aggregate, has had, or could reasonably be expected to have, a Material Adverse
Effect.

 

(i)            Other Credit Documents:  the Pledge Agreements, any Guaranty or any
other Credit Document (once executed and delivered) shall cease for any reason
(other than termination in accordance with its terms or by agreement made
pursuant to the provisions of section 15.12) to be in full force and
effect; or any Credit Party shall default in any material respect in the due
performance and observance of any other obligation under a Credit Document
(other than this Agreement) to which it is a party and such default shall
continue unremedied for a period of at least 30 days (or such other longer cure
period permitted under the applicable Credit Document) after the earlier of (i)
an officer of a Borrower obtaining actual knowledge of such default and (ii)
after notice to Genlyte Group by either Administrative Agent or the Required
Lenders; or any Credit Party shall (or seek to) disaffirm or otherwise limit
its obligations under a Credit Document to which it is a party otherwise than
in strict compliance with the terms thereof.

 

(j)            Change of Control:  there shall have occurred a Change of
Control.

 

(k)           Qualified Receivables Transaction:  there shall occur an “Amortization Event”
(as defined in the Qualified Receivables Purchase Agreement).

 

12.2.       Acceleration, etc.  Upon the occurrence of any Event of Default,
the Administrative Agents shall, upon the written request of the Required
Lenders, by written notice to the Borrowers, take any or all of the following
actions, without prejudice to the rights of any of the Administrative Agents,
for itself or as collateral agent or otherwise, or any Lender to enforce its
claims against the Borrowers or any other Credit Party (provided that, if an Event of Default
specified in section 12.1(g) shall occur, the result which would occur
upon the giving of written notice by the Administrative Agents as specified in
clauses (i), (ii) and (iii) below shall occur automatically without the giving
of any such notice):  (i) declare the Total
Commitment and the obligation to issue Letters of Credit terminated, whereupon
the Commitment and any such obligation of each Lender shall forthwith terminate
immediately without any other notice of any kind; (ii) declare the principal of
and any accrued interest in respect of all Loans, and all other Obligations
owing hereunder and under the other Credit Documents to be, whereupon the same
shall become, forthwith due and

 

117

 

payable without presentment, demand, protest or other notice of any
kind, all of which are hereby waived by the Borrowers; (iii)  require the
Borrowers to, and the Borrowers shall thereupon, deposit in a non-interest
bearing account with the Administrative Agents, as cash collateral for their
Obligations under the Credit Documents, an amount equal to the maximum amount
currently or at any time thereafter available to be drawn on all outstanding
Letters of Credit, and the Borrowers hereby pledge to the Administrative Agents
and the Lenders and grant to the Administrative Agents and the Lenders a
security interest in, all such cash as security for such Obligations; and/or
(iv) require the Borrowers to, and the Borrowers shall thereupon cause to be
issued one or more irrevocable letters of credit to the Administrative Agents, as
collateral for their Obligations under the Credit Documents, on terms, and from
financial institutions, reasonably acceptable to the Administrative Agents in
an aggregate stated amount equal to the maximum amount currently or at any time
thereafter available to be drawn on all outstanding Letters of Credit, and the
Borrowers hereby pledge to the Administrative Agents and the Lenders and grant
to the Administrative Agents and the Lenders a security interest in, the
proceeds payable under such letters of credit as security for such
Obligations.  Upon the curing of all
existing Events of Default to the satisfaction of the Required Lenders, the
Administrative Agents shall return such cash collateral to Genlyte Group.

 

12.3.       Application
of Liquidation Proceeds. 
All monies received by the Administrative Agents or any Lender from the
exercise of remedies hereunder or under the other Credit Documents or under any
other documents relating to this Agreement shall, unless otherwise required by
the terms of the other Credit Documents or by applicable law, be applied as
follows:

 

(1)           first, to the payment of all expenses (to the extent not
paid by the Borrowers) incurred by the Administrative Agents and the Lenders in
connection with the exercise of such remedies, including, without limitation,
all reasonable costs and expenses of collection, attorneys’ fees, court costs
and any foreclosure expenses;

 

(2)           second, to the payment pro rata of interest then accrued on the
outstanding Loans;

 

(3)           third, to the payment pro rata of any fees then accrued and payable
to the Administrative Agents or any Lender under this Agreement;

 

(4)           fourth, to the payment pro rata of the principal balance then owing
on the outstanding Loans, the Unpaid Drawings and the Specified Hedge Agreements;

 

(5)           fifth, to the payment pro rata of all other amounts owed by the
Borrowers to the Administrative Agents or any Lender under this Agreement or
any other Credit Document (including, without limitation, a deposit with any
Letter of Credit Issuer in the aggregate amount of the Stated Amounts of all
Letters of Credit Outstanding);

 

(6)           sixth, to the payment pro rata of all other amounts owed by the
Borrowers to the Administrative Agents or any Lender or any Affiliate of any of
the foregoing under any other agreement, instrument or document, so long as
such Administrative Agent is provided with a true and correct copy thereof and
such person timely certifies to such Administrative Agent the amount or amounts
due and owing thereunder; and

 

118

 

(7)           finally, any remaining surplus after all of the
Obligations and obligations described in clause (6) above have been paid in
full, to Genlyte Group (as agent for itself and the Subsidiaries as their
interests may appear) or to whomsoever shall be lawfully entitled thereto.

 

For the purpose of determining pro rata shares under clause (4) of this section 12.3,
all Obligations in respect of Specified Hedge Agreements
will be deemed to have an outstanding principal amount equal to the amount that
would be payable (or would permit the Lender or Lender Affiliate counterparty
thereto to cause to become payable) by, as the case may be, Genlyte Group or
its Material Subsidiary that is party thereto (after giving effect to any netting
agreement) upon the occurrence of any default or other termination thereunder
(after notice and opportunity to cure to the extent, if any, provided for in
such Specified Hedge Agreement).

 

SECTION
13.       THE ADMINISTRATIVE AGENTS.

 

13.1.       Appointment.  Each Lender hereby irrevocably designates
and appoints NCB as the Domestic Administrative Agent and Bank One Canada as
the Canadian Administrative Agent to act as specified herein and in the other
Credit Documents, and each such Lender hereby irrevocably authorizes each of
NCB and Bank One Canada as the Administrative Agents for such Lender and as
collateral agents under the Pledge Agreements, to take such action on its
behalf under the provisions of this Agreement and the other Credit Documents
and to exercise such powers and perform such duties as are expressly delegated
to such Administrative Agents by the terms of this Agreement and the other
Credit Documents, together with such other powers as are reasonably incidental
thereto.  The Administrative Agents
agree to act as such upon the express conditions contained in this section
13.  Notwithstanding any provision
to the contrary elsewhere in this Agreement, the Administrative Agents shall
not have any duties or responsibilities, except those expressly set forth
herein or in the other Credit Documents, nor any fiduciary relationship with
any Lender, and no implied covenants, functions, responsibilities, duties,
obligations or liabilities shall be read into this Agreement or otherwise exist
against the Administrative Agents.  The
provisions of this section 13 are solely for the benefit of the
Administrative Agents, and the Lenders, and the Borrowers and their respective
Subsidiaries shall not have any rights as a third party beneficiary of any of
the provisions hereof.  In performing
its functions and duties under this Agreement, the Administrative Agents shall
act solely as agents of the Lenders and do not assume and shall not be deemed
to have assumed any obligation or relationship of agency or trust with or for
the Borrowers or any of their respective Subsidiaries.

 

13.2.       Delegation of Duties.  Each Administrative Agent may execute any of
its duties under this Agreement or any other Credit Document by or through
agents or attorneys-in-fact and shall be entitled to advice of counsel
concerning all matters pertaining to such duties. The Administrative Agents
shall not be responsible for the negligence or misconduct of any agents or
attorneys-in-fact selected by it with reasonable care except to the extent otherwise
required by section 13.3.

 

13.3.       Exculpatory
Provisions. 
Neither of the Administrative Agents nor any of their respective
officers, directors, employees, agents, attorneys-in-fact or affiliates shall
be (i) liable for any action lawfully taken or omitted to be taken by it or
such person under or in connection with this Agreement (except for its or such
person’s own gross negligence or willful misconduct) or (ii)

 

119

 

responsible in any manner to any of the Lenders for any recitals,
statements, representations or warranties made by the Genlyte Group, or any of
the Subsidiaries, or any of their respective officers contained in this
Agreement, any other Credit Document or in any certificate, report, statement
or other document referred to or provided for in, or received by either
Administrative Agent under or in connection with, this Agreement or any other
Credit Document or for any failure of the Borrowers or any of their respective
Subsidiaries, or any of their respective officers to perform its obligations
hereunder or thereunder.  Neither of the
Administrative Agents shall be under any obligation to any Lender to ascertain
or to inquire as to the observance or performance of any of the agreements
contained in, or conditions of, this Agreement, or to inspect the properties,
books or records of the Borrowers or any of their respective Subsidiaries.  Neither of the Administrative Agents shall
be responsible to any Lender for the effectiveness, genuineness, validity,
enforceability, collectibility or sufficiency of this Agreement or any Credit
Document or for any representations, warranties, recitals or statements made
herein or therein or made in any written or oral statement or in any financial
or other statements, instruments, reports, certificates or any other documents
in connection herewith or therewith furnished or made by the Administrative
Agents to the Lenders or by or on behalf of the Borrowers or any of their
respective Subsidiaries to the Administrative Agents or any Lender or be
required to ascertain or inquire as to the performance or observance of any of
the terms, conditions, provisions, covenants or agreements contained herein or
therein or as to the use of the proceeds of the Loans or of the existence or
possible existence of any Default or Event of Default.

 

13.4.       Reliance by
Administrative Agents. 
Each of the Administrative Agents shall be entitled to rely, and shall
be fully protected in relying, upon any note, writing, resolution, notice, consent,
certificate, affidavit, letter, cablegram, telegram, facsimile transmission,
telex or teletype message, statement, order or other document or conversation
believed by it, in good faith, to be genuine and correct and to have been
signed, sent or made by the proper person or persons and upon advice and
statements of legal counsel (including, without limitation, counsel to the
Borrowers or any of their respective Subsidiaries), independent accountants and
other experts selected by either Administrative Agent.  Each of the Administrative Agents shall be
fully justified in failing or refusing to take any action under this Agreement
or any other Credit Document unless it shall first receive such advice or
concurrence of the Required Lenders as it deems appropriate or it shall first
be indemnified to its satisfaction by the Lenders against any and all liability
and expense which may be incurred by it by reason of taking or continuing to
take any such action.  The Administrative
Agents shall in all cases be fully protected in acting, or in refraining from
acting, under this Agreement and the other Credit Documents in accordance with
a request of the Required Lenders (or all of the Lenders, as to any matter
which, pursuant to section 15.12, can only be effectuated with the
consent of all Lenders), and such request and any action taken or failure to
act pursuant thereto shall be binding upon all the Lenders.

 

13.5.       Notice of Default.  The Administrative Agents shall not be
deemed to have knowledge or notice of the occurrence of any Default or Event of
Default hereunder unless the Administrative Agents have received notice from a
Lender or the Borrowers referring to this Agreement, describing such Default or
Event of Default and stating that such notice is a “notice of default”.  In the event that an Administrative Agent
receives such a notice, the Administrative Agent shall give prompt notice
thereof to the Lenders.  The
Administrative Agents shall take such action with respect to such Default or
Event of Default as shall be reasonably directed by the Required Lenders, provided that unless
and until the Administrative Agents shall have received such

 

120

 

directions, the Administrative Agents may (but shall not be obligated
to) take such action, or refrain from taking such action, with respect to such
Default or Event of Default as they shall deem advisable and in the best
interests of the Lenders.

 

13.6.       Non-Reliance.  Each Lender expressly acknowledges that
neither of the Administrative Agents nor any of their respective officers,
directors, employees, agents, attorneys-in-fact or Affiliates have made any
representations or warranties to it and that no act by the Administrative
Agents hereinafter taken, including any review of the affairs of the Borrowers
or any of their respective Subsidiaries, shall be deemed to constitute any
representation or warranty by the Administrative Agents to any Lender.  Each Lender represents to the Administrative
Agents that it has, independently and without reliance upon either
Administrative Agent, or any other Lender, and based on such documents and
information as it has deemed appropriate, made its own appraisal of and
investigation into the business, assets, operations, property, financial and
other conditions, prospects and creditworthiness of the Borrowers and their
respective Subsidiaries and made its own decision to make its Loans hereunder
and enter into this Agreement.  Each
Lender also represents that it will, independently and without reliance upon
either Administrative Agent, or any other Lender, and based on such documents
and information as it shall deem appropriate at the time, continue to make its
own credit analysis, appraisals and decisions in taking or not taking action
under this Agreement, and to make such investigation as it deems necessary to
inform itself as to the business, assets, operations, property, financial and
other conditions, prospects and creditworthiness of the Borrowers and their
respective Subsidiaries.  No
Administrative Agent shall have any duty or responsibility to provide any
Lender with any credit or other information concerning the business,
operations, assets, property, financial and other conditions, prospects or
creditworthiness of the Borrowers or any of their respective Subsidiaries which
may come into its possession or its respective officers, directors, employees,
agents, attorneys-in-fact or Affiliates.

 

13.7.       Indemnification.  The Lenders agree to indemnify each
Administrative Agent in its capacity as such ratably according to their
respective Domestic Revolving Loans, Unutilized Domestic Revolving Commitments,
Canadian Revolving Loans, Unutilized Canadian Revolving Commitments and
Domestic Term Loans, from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, reasonable
expenses or disbursements of any kind whatsoever which may at any time
(including, without limitation, at any time following the payment of the
Obligations) be imposed on, incurred by or asserted against such Administrative
Agent in its capacity as such in any way relating to or arising out of this
Agreement or any other Credit Document, or any documents contemplated by or
referred to herein or the transactions contemplated hereby or any action taken
or omitted to be taken by such Administrative Agent under or in connection with
any of the foregoing, but only to the extent that any of the foregoing is not
paid by the Borrowers, provided that no Lender shall be liable to either
Administrative Agent for the payment of any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements to the extent resulting solely from such
Administrative Agent’s gross negligence or willful misconduct.  If any indemnity furnished to an
Administrative Agent for any purpose shall, in the opinion of such
Administrative Agent, be insufficient or become impaired, such Administrative
Agent may call for additional indemnity and cease, or not commence, to do the
acts indemnified against until such additional indemnity is furnished.  The agreements in this section 13.7
shall survive the payment of all Obligations.

 

121

 

13.8.       The Administrative
Agents in Individual Capacity. 
Each Administrative Agent and its respective Affiliates may make loans
to, accept deposits from and generally engage in any kind of business with
Genlyte Group and the Subsidiaries and their Affiliates as though not acting as
an Administrative Agent hereunder or as a collateral agent under the Pledge
Agreements.  With respect to the Loans
made by it and all Obligations owing to it, each Administrative Agent shall
have the same rights and powers under this Agreement as any Lender and may
exercise the same as though it were not an Administrative Agent, and the terms
“Lender” and “Lenders” shall include such Administrative Agent in its
individual capacity.

 

13.9.       Successor
Administrative Agent. 
Each Administrative Agent may resign as an Administrative Agent and as a
collateral agent under the Pledge Agreements, upon not less than 20 Business
Days’ notice to the Lenders and the Borrowers. 
Each Administrative Agent may be removed as an Administrative Agent for
cause upon not less than 20 Business Days’ notice to such Administrative Agent
and the Borrowers from the Required Lenders. The Required Lenders shall appoint
from among the Lenders a successor Administrative Agent for the Lenders for any
resigning or removed Administrative Agent, subject to prior approval by the
Borrowers if no Default under section 12.1(a) or Event of Default has
occurred and is continuing (such approval not to be unreasonably withheld or
delayed), whereupon such successor agent shall succeed to the rights, powers
and duties of the resigning or removed Administrative Agent, and the term
“Administrative Agents” and “Domestic Administrative Agent” or “Canadian
Administrative Agent”, as the case may be, shall include such successor agent
effective upon its appointment, and the resigning or removed Administrative
Agent’s rights, powers and duties as an Administrative Agent shall be
terminated, without any other or further act or deed on the part of such former
Administrative Agent or any of the parties to this Agreement.  After the resigning or removed
Administrative Agent’s resignation or removal hereunder as an Administrative
Agent, the provisions of this section 13 shall inure to its benefit as
to any actions taken or omitted to be taken by it while it was an
Administrative Agent under this Agreement.

 

13.10.     Other Agents.  Any Lender identified herein as a Co-Agent,
Co-Lead Arranger, Syndication Agent, Co-Documentation Agent, Managing Agent,
Manager or any other corresponding title, other than “Administrative Agent”,
“Domestic Administrative Agent” or “Canadian Administrative Agent” shall have
no right, power, obligation, liability, responsibility or duty under this
Agreement or any other Credit Document except those applicable to all Lenders
as such. Each Lender acknowledges that it has not relied, and will not rely, on
any Lender so identified in deciding to enter into this Agreement or in taking
or not taking any action hereunder.

 

SECTION
14.  GUARANTY BY GENLYTE GROUP.

 

14.1.       Guaranty of
Subsidiary Borrowings. 
Without limiting in any respect the obligations and liabilities of
Genlyte Group under and pursuant to the Guaranty executed and delivered
pursuant to section 8.1(l), Genlyte Group hereby unconditionally
guarantees, for the benefit of each Administrative Agent, each Letter of Credit
Issuer and each Lender or any of its Affiliates which extends credit to any
other Borrower or any Subsidiary hereunder or under a Specified Hedge Agreement
or incurs expenses or liability hereunder or under a Specified Hedge Agreement,
the full and punctual payment of all amounts at any time owed of every type or
description, whether direct or indirect, contingent or absolute, by any such
other Borrower or

 

122

 

Subsidiary in respect of any such extension or extensions of credit or
expenses or liability (collectively, the “Guaranteed Obligations”).  Upon failure by any other Borrower or Guarantor to pay punctually
any such amount, Genlyte Group shall forthwith on demand by the Administrative
Agents (for their own account or acting on instructions from any affected
Lender, on its own behalf or on behalf of any of its Affiliates) pay the amount
not so paid at the place and in the currency and otherwise in the manner specified
in this Agreement (including, without limitation, section 7.4) or any
other applicable agreement or instrument.

 

14.2.       Additional
Undertaking.  As a
separate, additional and continuing obligation, Genlyte Group unconditionally
and irrevocably undertakes and agrees, for the benefit of the Administrative
Agents, the Letter of Credit Issuers and the Lenders and their Affiliates
referred to in section 14.1, that, should any amounts described in section
14.1 not be recoverable from Genlyte Group under section 14.1 for
any reason whatsoever (including, without limitation, by reason of any
provision of any Credit Document or Specified Hedge Agreement or any other
agreement or instrument executed in connection therewith being or becoming
void, unenforceable, or otherwise invalid under any applicable law) then,
notwithstanding any notice or knowledge thereof by any Lender, either
Administrative Agent, any of their respective Affiliates, or any other Person,
at any time, Genlyte Group as sole, original and independent obligor, upon
demand by the Administrative Agents (acting on instructions from any affected
Lender, on its own behalf or on behalf of any of its Affiliates), will make
payment to the Administrative Agents, for the account of the affected
Administrative Agents, Letter of Credit Issuers or Lenders (or any such
Affiliate), of all such obligations not so recoverable by way of full
indemnity, in such currency and otherwise in such manner as is provided in any
applicable agreement or instrument.

 

14.3.       Guaranty
Unconditional, etc. 
The obligations of Genlyte Group under this section shall be
unconditional and absolute and, without limiting the generality of the
foregoing, except in the case of payment in full of all Obligations, shall not
be released, discharged or otherwise affected by the occurrence, one or more
times, of any of the following:

 

(a)           any extension, renewal,
settlement, compromise, waiver or release in respect to any Guaranteed
Obligation of any other Borrower under any agreement or instrument, by
operation of law or otherwise;

 

(b)           any modification or
amendment of or supplement to this Agreement, any Note, any other Credit
Document, or any agreement or instrument evidencing or relating to any
Guaranteed Obligation;

 

(c)           any release,
non-perfection or invalidity of any direct or indirect security for any
Guaranteed Obligation of any other Borrower or Subsidiary under any agreement
or instrument evidencing or relating to any Guaranteed Obligation;

 

(d)           any change in the
corporate existence, structure or ownership of any other Borrower or any
insolvency, bankruptcy, reorganization or other similar proceeding affecting
any other Borrower or its assets or any resulting release or discharge of any
obligation of any other Borrower contained in any agreement or instrument
evidencing or relating to any Guaranteed Obligation;

 

123

 

(e)           the existence of any
claim, set-off or other rights which Genlyte Group may have at any time against
any other Borrower or Guarantor, either Administrative Agent, any Letter of
Credit Issuer, any Lender, any Affiliate of any Lender or any other Person,
whether in connection herewith or any unrelated transactions;

 

(f)            any invalidity or
unenforceability relating to or against any other Borrower or Guarantor for any
reason of any agreement or instrument evidencing or relating to any Guaranteed
Obligation, or any provision of applicable law or regulation purporting to
prohibit the payment by any other Borrower or Guarantor of any Guaranteed
Obligation; or

 

(g)           any other act or
omission to act or delay of any kind by any other Borrower or Guarantor, either
Administrative Agent, any Lender, any of their Affiliates, or any other Person,
or any other circumstance whatsoever, which might, but for the provisions of
this section, constitute a legal or equitable discharge of Genlyte Group’s
obligations under this section.

 

14.4.       Genlyte
Group Obligations to Remain in Effect; Restoration.  Genlyte Group’s obligations under this section
14 shall remain in full force and effect until the Commitments shall have
terminated, and the principal of and interest on the Notes and other Guaranteed
Obligations, and all other amounts payable by Genlyte Group or any other
Borrower or Guarantor under the Credit Documents or any other agreement or
instrument evidencing or relating to any of the Guaranteed Obligations, shall
have been paid in full and all Letters of Credit have been terminated or have
expired. If at any time any payment of any of the Guaranteed Obligations of any
other Borrower or Guarantor in respect of any Guaranteed Obligations is
rescinded or must be otherwise restored or returned upon the insolvency,
bankruptcy or reorganization of such other Borrower or Guarantor, Genlyte
Group’s obligations under this section with respect to such payment shall be
reinstated at such time as though such payment had been due but not made at
such time.

 

14.5.       Waiver of Acceptance, etc.  Genlyte Group irrevocably waives acceptance
hereof, presentment, demand, protest and any notice not provided for herein, as
well as any requirement that at any time any action be taken by any Person
against any other Borrower, Guarantor or any other Person, or against any
collateral or guaranty of any other Person.

 

14.6.       Subrogation.  Until the indefeasible payment in full of
all of the Obligations and any other Guaranteed Obligations and the termination
of the Commitments of the Lenders hereunder, and the termination or expiration
of any Letters of Credit, Genlyte Group shall have no rights, by operation of
law or otherwise, upon making any payment under this section to be subrogated
to the rights of the payee against any other Borrower or Guarantor with respect
to such payment or otherwise to be reimbursed, indemnified or exonerated by any
other Borrower or Guarantor in respect thereof.

 

14.7.       Effect of Stay.  In the event that acceleration of the time
for payment of any amount payable by any other Borrower or Guarantor under any
Guaranteed Obligation is stayed upon insolvency, bankruptcy or reorganization
of such other Borrower or Guarantor, all such amounts otherwise subject to
acceleration under the terms of any applicable agreement or instrument

 

124

 

evidencing or relating to any Guaranteed Obligation shall nonetheless
be payable by Genlyte Group under this section forthwith on demand by the
Administrative Agents.

 

SECTION
15.       MISCELLANEOUS.

 

15.1.       Payment of Expenses etc.  (a) Whether or not the transactions
contemplated hereby are consummated, the Borrowers agree to pay (or reimburse
the Administrative Agents and the Co-Lead Arrangers for) all reasonable
out-of-pocket costs and expenses of the Administrative Agents and the Co-Lead
Arrangers in connection with the negotiation, preparation, execution and
delivery of the Credit Documents and the documents and instruments referred to
therein, including, without limitation, the reasonable fees and disbursements
of Squire, Sanders & Dempsey L.L.P. and any other special counsel to the Administrative
Agents.

 

(b)           The
Borrowers agree to pay (or reimburse the Administrative Agents and the Co-Lead
Arrangers for) all reasonable out-of-pocket costs and expenses of the
Administrative Agents and the Co-Lead Arrangers in connection with any amendment,
waiver or consent relating to any of the Credit Documents which is requested by
the Borrowers, including, without limitation, the reasonable fees and
disbursements of Squire, Sanders & Dempsey L.L.P. and any other special
counsel to the Administrative Agents.

 

(c)           The
Borrowers agree to pay (or reimburse the Administrative Agents, the Lenders and
their Affiliates for) all reasonable out-of-pocket costs and expenses of the
Administrative Agents and, upon and during the continuance of a Default or an
Event of Default, the Lenders, in each case in connection with the enforcement
against the Borrowers of any of the Credit Documents or the other documents and
instruments referred to therein, including, without limitation, (i) the
reasonable fees and disbursements of Squire, Sanders & Dempsey L.L.P. and
any other special counsel to the Administrative Agents, and (ii) the reasonable
fees and disbursements of any individual counsel to any Lender (including
allocated costs of internal counsel).

 

(d)           The
Borrowers agree to pay and hold the Administrative Agents and each of the
Lenders harmless from and against any and all present and future stamp and
other similar taxes with respect to the foregoing matters and save the
Administrative Agents and each of the Lenders harmless from and against any and
all liabilities with respect to or resulting from any delay or omission (other
than to the extent attributable to any such indemnified person) to pay such
taxes.

 

(e)           The
Borrowers agree to indemnify each Administrative Agent, each Co-Lead Arranger,
each Co-Documentation Agent, each Lender, and their respective officers,
directors, trustees, employees, representatives, agents and Affiliates, and the
successors and assigns of any of the foregoing (collectively, the “Indemnities”) from
and hold each of them harmless against any and all losses, liabilities, claims,
damages or expenses reasonably incurred by any of them as a result of, or
arising out of, or in any way related to, or by reason of

 

(i)            any investigation,
litigation or other proceeding (whether or not either Administrative Agent,
either Co-Lead Arranger, either Co-Documentation Agent or any Lender is a party
thereto) related to the entering into and/or performance of any Credit Document
or the use of the proceeds of any Loans hereunder or the consummation of any

 

125

 

transactions contemplated in any Credit Document,
other than any such investigation, litigation or proceeding arising out of
transactions solely between any of the Lenders, either of the Co-Lead
Arrangers, either of the Co-Documentation Agents or either of the
Administrative Agents, transactions solely involving the assignment by a Lender
of all or a portion of its Loans and Commitments, or the granting of
participations therein, as provided in this Agreement, or arising solely out of
any examination of a Lender by any regulatory or other governmental authority
having jurisdiction over it, or

 

(ii)           the actual or alleged
presence of Hazardous Materials in the air, surface water or groundwater or on
the surface or subsurface of any Real Property owned, leased or at any time
operated by the Borrowers or any of their past or then current Subsidiaries or
Affiliates or any of their predecessors in interest, the release, generation,
storage, transportation, handling or disposal of Hazardous Materials at any
location, whether or not owned or operated by the Borrowers or any of their
past or current Subsidiaries or any of their respective Affiliates or any of
their predecessors in interest, if the Borrowers or any such Subsidiary or
Affiliate could have or is alleged to have any responsibility in respect
thereof, the non-compliance of any such Real Property with foreign, federal,
state and local laws, regulations and ordinances (including applicable permits
thereunder) applicable thereto, or any Environmental Claim asserted against the
Borrowers or any of their Subsidiaries or any of their respective Affiliates,
in respect of any such Real Property,

 

including, in each case, without limitation, the reasonable documented
fees and disbursements of counsel incurred in connection with any such
investigation, litigation or other proceeding (but excluding any such losses,
liabilities, claims, damages or expenses to the extent incurred by reason of
the gross negligence or willful misconduct of the person to be indemnified or
of any other indemnitee who is such person or an Affiliate of such person). To
the extent that the undertaking to indemnify, pay or hold harmless any person
set forth in the preceding sentence may be unenforceable because it is
violative of any law or public policy, the Borrowers shall make the maximum
contribution to the payment and satisfaction of each of the indemnified
liabilities which is permissible under applicable law.

 

15.2.       Right of Setoff.  In addition to any rights now or hereafter
granted under applicable law or otherwise, and not by way of limitation of any
such rights, upon the occurrence and during the continuance of an Event of
Default, each Lender and each of its Affiliates is hereby authorized at any
time or from time to time, without presentment, demand, protest or other notice
of any kind to the Borrowers or to any other person, any such notice being
hereby expressly waived, to set off and to appropriate and apply any and all
deposits (general or special) and any other Indebtedness at any time held or
owing by such Lender or Affiliate (including, without limitation, by branches
and agencies of such Lender or Affiliate wherever located) to or for the credit
or the account of the Borrowers against and on account of the Obligations and
liabilities of the Borrowers to such Lender under this Agreement or under any
of the other Credit Documents or Specified Hedge Agreements, including, without
limitation, all interests in Obligations of the Borrowers purchased by such
Lender pursuant to section 15.4(c), and all other claims of any nature
or description arising out of or connected with this Agreement or any other
Credit Document or Specified Hedge Agreement, irrespective of whether or not
such Lender shall have made any demand hereunder and although said Obligations,
liabilities or claims, or any of them, shall be contingent or unmatured.

 

126

 

15.3.       Notices.  Except as otherwise expressly provided
herein, all notices and other communications provided for hereunder shall be in
writing (including telegraphic, telex, facsimile transmission, e-mail
transmission or cable communication) and mailed, telegraphed, telexed,
transmitted, cabled or delivered, if to the Borrowers, at 10350 Ormsby Park
Place, Suite 601, Louisville, Kentucky 40223 (telecopy, 502.420.9540),
Attention: Treasurer (the Borrowers acknowledge and agree that any notice to
the Borrowers provided for or required herein shall be sufficient as notice to
all of the Borrowers if sent to the foregoing address); if to any Lender at its
address specified for such Lender in Annex I hereto; if to the Domestic
Administrative Agent or the Canadian Administrative, at its Notice Office; or
at such other address as shall be designated by any party in a written notice
to the other parties hereto. All such notices and communications shall be
mailed, telegraphed, telexed, telecopied, transmitted or cabled or sent by
overnight courier, and shall be effective when received.

 

15.4.       Benefit of Agreement.  (a)  Successors and Assigns Generally.  This Agreement shall be binding upon and
inure to the benefit of and be enforceable by the parties hereto and their
respective successors and assigns, provided that the Borrowers may not assign or transfer
any of their rights or obligations hereunder without the prior written consent
of all the Lenders (other than any Defaulting Lender), and, provided, further,
that any assignment by a Lender of its rights and obligations hereunder shall
be effected in accordance with section 15.4(c).

 

(b)           Participations.  Notwithstanding the foregoing, with the
prior written consent of Genlyte Group (unless a Default or an Event of Default
exists, in which case no consent of Genlyte Group shall be required, unless following
such participation permitted under this section 15.4(b), a Borrower
would incur additional costs, withholding obligations or other reimbursement
obligations under section 2.10 that are not then being paid or performed
in respect of the participating Lender and such Borrower has not otherwise
exercised its right to replace such participant under section 7.4(b), in
which case Genlyte Group will have a right to consent to such participation in
accordance with this paragraph) and the Administrative Agents (which consents
shall not be unreasonably withheld) each Lender may at any time grant
participations in any of its rights hereunder or under any of the Notes to any
person, provided,
however, a reasonable
basis to withhold such consent includes any increased costs to a Borrower under
section 2.10 or otherwise from those being charged by the respective
granting Lender prior to granting such participation, and provided  further that in the case of any such participation,

 

(i)            the participant shall
not have any rights under this Agreement or any of the other Credit Documents,
including rights of consent, approval or waiver (the participant’s rights
against such Lender in respect of such participation to be those set forth in
the agreement executed by such Lender in favor of the participant relating
thereto),

 

(ii)           such Lender’s
obligations under this Agreement (including, without limitation, its Commitment
hereunder) shall remain unchanged,

 

(iii)          such Lender shall remain
solely responsible to the other parties hereto for the performance of such
obligations,

 

127

 

(iv)          such Lender shall remain
the holder of any Note for all purposes of this Agreement, and

 

(v)           the Borrowers, the
Administrative Agents, and the other Lenders shall continue to deal solely and
directly with the selling Lender in connection with such Lender’s rights and
obligations under this Agreement, and all amounts payable by the Borrowers
hereunder shall be determined as if such Lender had not sold such
participation, except that the participant shall be entitled to the benefits of
sections 2.10 and 2.11  of
this Agreement to the extent that such Lender would be entitled to such
benefits if the participation had not been entered into or sold,

 

and, provided further,
that no Lender shall transfer, grant or sell any participation under which the
participant shall have rights to approve any amendment to or waiver of this
Agreement or any other Credit Document except to the extent such amendment or
waiver would (x) extend any interim or final date on or by which any Loan in
which such participant is participating may be incurred, or on which any such
Loan or Unpaid Drawing is scheduled to be repaid, prepaid or mature, extend the
expiration date of any Letter of Credit in which such participant is
participating beyond the Maturity Date, or extend any interim or final date on
which any Commitment in which such participant is participating is scheduled to
expire or terminate, or reduce the rate or extend the time of payment of
interest or Fees thereon (except in connection with a waiver of the
applicability of any post-default increase in interest rates), or reduce the
principal amount thereof, or increase such participant’s participating interest
in any Commitment over the amount thereof then in effect (it being understood
that a waiver of any Default or Event of Default shall not constitute a change
in the terms of any such Commitment), or release of all or a substantial
portion of the collateral pledged under any of the Pledge Agreements or release
of a Borrower from any obligations hereunder or any Guarantor from its
Guaranty, or (y) consent to the assignment or transfer by a Borrower of any of
its rights and obligations under this Agreement.

 

(c)           Assignments
by Lenders.  Notwithstanding
the foregoing, (x) any Lender may assign all or a fixed portion of its Loans
and/or Commitment, and its rights and obligations hereunder, to another Lender
that is not a Defaulting Lender, or to an Affiliate of any Lender (including
itself) which is not a Defaulting Lender and which is a commercial bank,
financial institution or other “accredited investor” (as defined in SEC
Regulation D), and (y) any Lender may assign all, or if less than all, a fixed
portion, equal to at least $2,000,000 (with respect to Domestic Revolving
Loans, Domestic Revolving Commitments or Domestic Term Loans) or CDN$2,000,000
(with respect to Canadian Revolving Loans or Canadian Revolving Commitments),
as the case may be, in the aggregate for the assigning Lender or assigning
Lenders, of its Loans and/or Commitment and its rights and obligations
hereunder, to one or more Eligible Transferees, each of which assignees shall
become a party to this Agreement as a Lender by execution of an Assignment and
Assumption Agreement, provided that

 

(i)            in the case of any
assignment of a portion of (1) any Domestic Revolving Loans and/or Domestic
Revolving Commitment of a Domestic Revolving Facility Lender, such Lender shall
retain a minimum fixed portion of all Domestic Revolving Loans and Domestic
Revolving Commitments equal to at least $2,000,000, (2) any Domestic Term Loan,
such Lender shall retain a minimum fixed portion equal to at least $2,000,000,
and (3)

 

128

 

any Canadian Revolving Loans and/or Canadian Revolving
Commitment of a Canadian Facility Lender, such Lender shall retain a minimum
fixed portion of all Canadian Revolving Loans and Canadian Revolving
Commitments equal to at least CDN$2,000,000,

 

(ii)           the Swing Line Lender
may only assign its Swing Line Revolving Commitment and its Swing Line
Revolving Loans as an entirety and only if the assignee thereof is or becomes a
Domestic Revolving Facility Lender,

 

(iii)          at the time of any such
assignment the Lender Register shall be deemed modified to reflect the
Commitments of such new Lender and of the existing Lenders,

 

(iv)          upon surrender of the
old Notes, new Notes will be issued to such new Lender and to the assigning
Lender, such new Notes to be in conformity with the requirements of section
2.5 (with appropriate modifications) to the extent needed to reflect the
revised Commitments,

 

(v)           in the case of clause
(y) only, the consent of the Administrative Agents and Genlyte Group shall be
required in connection with any such assignment (which consent shall not be
unreasonably withheld or delayed; provided, however, a reasonable basis to withhold such consent
includes any increased costs, withholdings or financial burden to a Borrower
under any one or more of section 2.10, section 3.5, section
4.5 and section 7.4(a) or otherwise from those being charged by the
respective assigning Lender prior to such assignment; and provided further, however, that no such consent of Genlyte
Group shall be required if any Default under section 12.1(a) or an Event
of Default shall have occurred and be continuing), unless following such transfer to an
Eligible Transferee permitted under this section 15.4(c), a Borrower
would incur additional costs, withholding obligations or other reimbursement
obligations under any one or more of section 2.10, section 3.5, section
4.5 and section 7.4(a) that are not then being paid or performed in
respect of the transferring Lender and such Borrower has not otherwise
exercised its right to replace such Eligible Transferee under section 7.4(b),
in which case Genlyte Group will have a right to consent to such transfer in
accordance with this paragraph,

 

(vi)          in the case of an assignment
by a Canadian Facility Lender, the assignee is not a non-resident of Canada, as
defined by the Income Tax Act (Canada), and

 

(vii)         the Domestic
Administrative Agent shall receive at the time of each such assignment, from
the assigning or assignee Lender, the payment of a non-refundable assignment
fee of $3,500,

 

and, provided further,
that such transfer or assignment will not be effective until the Assignment and
Assumption Agreement in respect thereof is recorded by the Administrative
Agents on the Lender Register maintained by it as provided herein.

 

To the extent of any assignment pursuant to this section
15.4(c) the assigning Lender shall be relieved of its obligations hereunder
with respect to its assigned Commitments.

 

129

 

At the time of each assignment pursuant to this section
15.4(c) to a person which is not already a Lender hereunder and which is
not a United States person (as such term is defined in section 7701(a)(30) of
the Code) for Federal income tax purposes, the respective assignee Lender shall
provide to the Borrowers and the Administrative Agents the appropriate Internal
Revenue Service Forms.  To the extent
that an assignment of all or any portion of a Lender’s Commitment and related outstanding
Obligations pursuant to this section 15.4(c) would, at the time of such
assignment, result in increased costs under any one or more of section 2.10,
section 3.5, section 4.5 and section 7.4(a) from those
being charged by the respective assigning Lender prior to such assignment, then
the Borrowers shall not be obligated to pay such increased costs (although the
Borrowers shall be obligated to pay any other increased costs of the type
referred to above in this sentence resulting from changes after the date of the
respective assignment).

 

Nothing in this section 15.4(c) shall prevent
or prohibit (i) any Lender which is a bank, trust company or other financial
institution from pledging its Notes or Loans to a Federal Reserve Bank in
support of borrowings made by such Lender from such Federal Reserve Bank, or
(ii) any Lender which is a trust, limited liability company, partnership or
other investment company from pledging its Notes or Loans to a trustee or agent
for the benefit of holders of certificates or debt securities issued by
it.  No such pledge, or any assignment
pursuant to or in lieu of an enforcement of such a pledge, shall relieve the
transferor Lender from its obligations hereunder.

 

(d)           No SEC
Registration or Blue Sky Compliance.  Notwithstanding any other provisions of this section 15.4,
no transfer or assignment of the interests or obligations of any Lender
hereunder or any grant of participation therein shall be permitted if such
transfer, assignment or grant would require the Borrowers to file a
registration statement with the SEC or to qualify the Loans under the “Blue
Sky” laws of any State.

 

(e)           Representations
of Lenders.  Each Lender
initially party to this Agreement hereby represents, and each person that
becomes a Lender pursuant to an assignment permitted by this section 15.4
will, upon its becoming party to this Agreement, represent that it is a
commercial lender, other financial institution or other “accredited investor”
(as defined in SEC Regulation D) which makes or acquires loans in the ordinary
course of its business and that it will make or acquire Loans for its own
account in the ordinary course of such business, provided that subject to the preceding sections
15.4(b) and (c), the disposition of any promissory notes or other
evidences of or interests in Indebtedness held by such Lender shall at all
times be within its exclusive control.

 

15.5.       No Waiver: Remedies
Cumulative.  No failure or
delay on the part of either Administrative Agent or any Lender in exercising
any right, power or privilege hereunder or under any other Credit Document and
no course of dealing between a Borrower or the Borrowers and either
Administrative Agent or any Lender shall operate as a waiver thereof; nor shall
any single or partial exercise of any right, power or privilege hereunder or
under any other Credit Document preclude any other or further exercise thereof
or the exercise of any other right, power or privilege hereunder or
thereunder.  The rights and remedies
herein expressly provided are cumulative and not exclusive of any rights or
remedies which either Administrative Agent or any Lender would otherwise
have.  No notice to or demand on a
Borrower in any case shall entitle the Borrowers to any other or further notice
or demand in similar or other circumstances or constitute a waiver of the

 

130

 

rights of either Administrative Agent or any Lender to any other or
further action in any circumstances without notice or demand.

 

15.6.       Payments Pro Rata.  (a) Each Administrative Agent agrees that
promptly after its receipt of each payment from or on behalf of the Borrowers
or other Credit Parties in respect of any Obligations, it shall distribute such
payment to the Lenders (other than any Lender that has expressly waived in
writing its right to receive its pro rata share thereof) pro rata based upon their respective shares,
if any, of the Class of Loans or other Obligations with respect to which such
payment was received. As to any such payment received by the Administrative
Agents prior to 1:00 P.M. (local time at its Payment Office) in funds which are
immediately available on such day, the Administrative Agents will use all
reasonable efforts to distribute such payment in immediately available funds on
the same day to the Lenders as aforesaid.

 

(b)           Each
of the Lenders agrees that, if it should receive any amount hereunder (whether
by voluntary payment, by realization upon security, by the exercise of the
right of setoff or banker’s lien, by counterclaim or cross action, by the
enforcement of any right under the Credit Documents, or otherwise) which is
applicable to the payment of the principal of, or interest on, the Loans or
Fees, of a sum which with respect to the related sum or sums received by other Lenders
is in a greater proportion than the total of such Obligation then owed and due
to such Lender bears to the total of such Obligation then owed and due to all
of the Lenders immediately prior to such receipt, then such Lender receiving
such excess payment shall purchase for cash without recourse or warranty from
the other Lenders an interest in the Obligations to such Lenders in such amount
as shall result in a proportional participation by all of the Lenders in such
amount, provided
that if all or any portion of such excess amount is thereafter recovered from
such Lender, such purchase shall be rescinded and the purchase price restored
to the extent of such recovery, but without interest.

 

(c)           Notwithstanding
anything to the contrary contained herein, the provisions of the preceding sections
15.6(a) and (b) shall be subject to the express provisions of this
Agreement which require, or permit, differing payments to be made to Lenders
which are not Defaulting Lenders, as opposed to Defaulting Lenders.

 

15.7.       Calculations:
Computations.  (a) The
financial statements to be furnished to the Lenders pursuant hereto shall be
made and prepared in accordance with GAAP consistently applied throughout the
periods involved (except as set forth in the notes thereto or as otherwise
disclosed in writing by the Borrowers to the Lenders); provided, that if at any time the
computations determining compliance with section 11 utilize accounting
principles different from those utilized in the financial statements furnished
to the Lenders, such computations shall set forth in reasonable detail a
description of the differences and the effect upon such computations.

 

(b)           All
computations of interest on Eurodollar Loans and CDOR Loans hereunder shall be
made on the actual number of days elapsed over a year of 360 days, and all
computations of Facility Fees and other fees and interest on Domestic Prime
Rate Loans and Canadian Prime Rate Loans hereunder shall be made on the actual
number of days elapsed over a year of 365 or 366 days, as the case may be.  For the purposes of the Interest Act
(Canada) and disclosure thereunder, whenever interest or any fee to be paid
hereunder or in connection herewith is to be calculated on the basis of any period
of time that is less than a calendar year, the yearly rate of interest to which
the

 

131

 

rate determined pursuant to such calculation is equivalent is the rate
so determined multiplied by the actual number of days in the calendar year in
which the same is to be ascertained and divided by the number of days in such
period of time.  The rates of interest
under this Agreement are nominal rates, and not effective rates or yields.  The principal of deemed reinvestment of
interest does not apply to any interest calculation under this Agreement.

 

15.8.       Governing Law; Submission
to Jurisdiction; Venue; Waiver of Jury Trial.  (a) THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND THE
RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE
CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF OHIO.
TO THE FULLEST EXTENT PERMITTED BY LAW, THE BORROWERS HEREBY UNCONDITIONALLY
AND IRREVOCABLY WAIVE ANY CLAIM TO ASSERT THAT THE LAW OF ANY JURISDICTION
OTHER THAN THE STATE OF OHIO GOVERNS THIS AGREEMENT OR ANY OF THE OTHER CREDIT
DOCUMENTS.  Any legal action
or proceeding with respect to this Agreement or any other Credit Document may
be brought in the Courts of the State of Ohio, or of the United States for the
Northern District of Ohio, and, by execution and delivery of this Agreement,
the Borrowers hereby irrevocably accept for themselves and in respect of their
property, generally and unconditionally, the jurisdiction of the aforesaid
courts. The Borrowers hereby further irrevocably consent to the service of
process out of any of the aforementioned courts in any such action or
proceeding by the mailing of copies thereof by registered or certified mail,
postage prepaid, to the Borrowers at the address for notices pursuant to section
15.3, such service to become effective 30 days after such mailing or at
such earlier time as may be provided under applicable law.  Nothing herein shall affect the right of any
party hereto to serve process in any other manner permitted by law or to commence
legal proceedings or otherwise proceed against another party hereto in any
other jurisdiction to the extent otherwise permitted by law.

 

(b)           The
Borrowers hereby irrevocably waive any objection which they may now or
hereafter have to the laying of venue of any of the aforesaid actions or
proceedings arising out of or in connection with this Agreement or any other
Credit Document brought in the courts referred to in section 15.8(a)
above and hereby further irrevocably waive and agree not to plead or claim in
any such court that any such action or proceeding brought in any such court has
been brought in an inconvenient forum.

 

(c)           EACH OF THE
PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY
JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO
THIS AGREEMENT OR ANY OF THE OTHER CREDIT DOCUMENTS (INCLUDING, WITHOUT
LIMITATION, ANY AMENDMENTS, WAIVERS OR OTHER MODIFICATIONS RELATING TO ANY OF
THE FOREGOING), OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.  EACH PARTY HERETO HEREBY (A) CERTIFIES THAT
NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO

 

132

 

ENFORCE
THE FOREGOING WAIVER, AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO
HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE
MUTUAL WAIVERS AND CERTIFICATIONS IN THIS PARAGRAPH.

 

15.9.       Counterparts.  This Agreement may be executed in any number
of counterparts and by the different parties hereto on separate counterparts,
each of which when so executed and delivered shall be an original, but all of
which shall together constitute one and the same agreement.  A set of counterparts executed by all the
parties hereto shall be lodged with the Borrowers and each Administrative
Agent.

 

15.10.     Effectiveness;
Integration.  This Agreement
shall become effective on the date (the “Effective Date”) on which the Borrowers and each of the
Lenders shall have signed a copy hereof (whether the same or different copies)
and shall have delivered the same to the Administrative Agents at the
applicable Notice Office of the Administrative Agents or, in the case of the
Lenders, shall have given to the Administrative Agents telephonic (confirmed in
writing), written telex or facsimile transmission notice (actually received) at
such office that the same has been signed and mailed or sent by overnight
courier to it. This Agreement, the other Credit Documents and any separate
letter agreements with respect to fees payable to the Administrative Agents or
the Co-Lead Arrangers, for their own account and benefit and/or for the
account, benefit of, and distribution to, the Lenders, constitute the entire
contract among the parties relating to the subject matter hereof and thereof
and supersede any and all previous agreements and understandings, oral or
written, relating to the subject matter hereof or thereof.

 

15.11.     Headings Descriptive.  The headings of the several sections and
other portions of this Agreement are inserted for convenience only and shall
not in any way affect the meaning or construction of any provision of this
Agreement.

 

15.12.     Amendment or Waiver.  Except as otherwise expressly provided in
this Agreement, neither this Agreement nor any terms hereof or thereof may be
amended, waived or otherwise modified unless such amendment, waiver or other modification is
in writing and signed by the Borrowers and:

 

(1)           with
respect to any such amendment, waiver or other modification that (A) affects a
right, privilege, remedy or other interest of the Canadian Facility Lenders
only and (B) does not in any respect limit, impair or otherwise adversely
affect any right, privilege, remedy or other interest of any one or more of the
Domestic Revolving Facility Lenders or Domestic Term Loan Lenders, by the
Required Canadian Facility Lenders,

 

(2)           with
respect to any such amendment, waiver or other modification that (A) affects a
right, privilege, remedy or other interest of the Domestic Revolving Facility
Lenders only and (B) does not in any respect limit, impair or otherwise
adversely affect any right, privilege, remedy or other interest of any one or
more of the Canadian Facility Lenders, or Domestic Term Loan Lenders by the
Required Domestic Revolving Facility Lenders,

 

(3)           with
respect to any such amendment, waiver or other modification that (A) affects

 

133

 

a right, privilege, remedy or other interest of the
Domestic Term Loan Lenders only and (B) does not in any respect limit, impair
or otherwise adversely affect any right, privilege, remedy or other interest of
any one or more of the Domestic Revolving Facility Lenders or Canadian Facility
Lenders, by the Required Domestic Term Loan Lenders, and

 

(4)           otherwise,
by the Required Lenders;

 

provided, however,
that, notwithstanding the provisions of clauses (1), (2), (3) and (4),
immediately preceding, no such amendment, waiver or other modification shall,
without the consent of each Lender (other than a Defaulting Lender) affected
thereby,

 

(a)           extend the Maturity
Date or any other date on which any Loan principal is due or extend any date on
or by which any Loan to be made by such Lender may be incurred or any Letter of
Credit may be issued, or extend any date on or by which any reimbursement or
Unpaid Drawing is scheduled to be repaid, or extend the expiration date of any
Letter of Credit beyond the Maturity Date, or extend any date on which any Commitment
of such Lender is scheduled to expire or terminate, or reduce the rate or
extend the time of payment of any interest or Fees thereon (except in
connection with a waiver of the applicability of any post-default increase in
interest rates), or reduce the principal amount of any Loan or Unpaid Drawing,
or increase any Commitment of such Lender over the amount thereof then in
effect, or release all or a substantial portion of the collateral pledged under
any of the Pledge Agreements, or release a Borrower from its obligations
hereunder or under any Guaranty or any Guarantor from its Guaranty,

 

 (b)          amend, modify or waive any provision of this section
15.12, or section 12.3, 13.7, 15.1, 15.4, 15.6
or 15.7(b), or any other provision of any of the Credit Documents
pursuant to which the consent or approval of all Lenders is by the terms of
such provision explicitly required,

 

(c)           reduce the percentage
specified in, or otherwise modify, the definition of Required Canadian Facility
Lenders, Required Domestic Revolving Facility Lenders, Required Domestic Term
Loan Lenders, or Required Lenders, or

 

(d)           consent to the
assignment or transfer by a Borrower of any of its rights and obligations under
this Agreement.

 

No provision of section 13 may be amended without the consent of
the Administrative Agents.

 

15.13.     Survival.  All indemnities set forth herein including,
without limitation, in sections 2.10, 2.11, 7.4, 13.7,
15.1, 15.15 and 15.16, shall survive the execution and
delivery of this Agreement and the making, prepayment and repayment of Loans.

 

15.14.     Domicile of Loans.  Each Lender may transfer and carry its Loans
at, to or for the account of any branch office, subsidiary or affiliate of such
Lender, provided
that the Borrowers shall not be responsible for costs arising under any one or
more of section 2.10, section 3.5, section 4.5

 

134

 

and section 7.4(a) resulting from any such transfer to the
extent not otherwise applicable to such Lender prior to such transfer.

 

15.15.     Judgment Currency.
(a) If for the purposes of obtaining judgment in any court it is necessary to
convert a sum due hereunder or under any of the Notes in any currency (the “Original Currency”)
into another currency (the “Other Currency”), the parties hereto agree, to the
fullest extent that they may effectively do so, that the rate of exchange used
shall be that at which in accordance with normal banking procedures the
Domestic Administrative Agent (in the case where the Original Currency is U.S.
Dollars) or the Canadian Administrative Agent (in the case where the Original
Currency is Canadian Dollars) could purchase the Original Currency with the
Other Currency at the Payment Office of such Administrative Agent on the second
Business Day preceding that on which final judgment is given.

 

(b)           The
obligation of a Borrower in respect of any sum due in the Original Currency
from it to any Lender or either Administrative Agent hereunder shall,
notwithstanding any judgment in any Other Currency, be discharged only to the
extent that on the Business Day following receipt by such Lender or such
Administrative Agent (as the case may be) of any sum adjudged to be so due in
such Other Currency, such Lender or such Administrative Agent (as the case may
be) may in accordance with normal banking procedures purchase U.S. Dollars or
Canadian Dollars, as applicable, with such Other Currency; if the amount of the
Original Currency so purchased is less than the sum originally due to such
Lender or such Administrative Agent (as the case may be) in the Original
Currency, the Borrowers agree, as a separate obligation and notwithstanding any
such judgment, to indemnify such Lender or such Administrative Agent (as the
case may be) against such loss, and if the amount of the Original Currency so
purchased exceeds the sum originally due to any Lender or such Administrative
Agent (as the case may be) in the Original Currency, such Lender or such
Administrative Agent (as the case may be) agrees to remit to the applicable Borrower
such excess.

 

15.16.     Lender Register.  The Borrowers hereby designate the
Administrative Agents to serve as their agents, solely for purposes of this section
15.16, to retain a copy of each Assignment and Assumption Agreement
delivered to and accepted by it and to maintain a register (the “Lender Register”) on
or in which it will record the names and addresses of the Lenders, and the
Commitments from time to time of each of such Lenders to the Borrowers, the
Loans made to the Borrowers by each of such Lenders and each repayment and
prepayment in respect of the principal amount of such Loans of each such
Lender.  Failure to make any such
recordation, or (absent manifest error) any error in such recordation, shall not
affect the Borrowers’ obligations in respect of such Loans.  With respect to any Lender, the transfer of
any Commitment of such Lender and the rights to the principal of, and interest
on, any Loan made pursuant to such Commitment shall not be effective until such
transfer is recorded on the Lender Register maintained by the Administrative
Agents with respect to ownership of such Commitment and Loans and prior to such
recordation all amounts owing to the transferor with respect to such Commitment
and Loans shall remain owing to the transferor.  The registration of assignment or transfer of all or part of any
Commitment and Loans shall be recorded by the Administrative Agents on the
Lender Register only upon the acceptance by the Administrative Agents of a
properly executed and delivered Assignment and Assumption Agreement pursuant to
section 15.4(c).  The Borrowers
agree to indemnify each Administrative Agent from and against any and all
losses, claims, damages and liabilities of whatsoever nature which may be
imposed on, asserted against or incurred by such Administrative

 

135

 

Agent in performing its duties under this section 15.16.  The Lender Register shall be available for
inspection by the Borrowers or any Lender at any reasonable time and from time
to time upon reasonable prior notice.

 

15.17.     General
Limitation of Liability. 
No claim may be made by the Borrowers, any Lender or either
Administrative Agent or any other person against the other Administrative Agent
or any other Lender or the Affiliates, directors, officers, employees,
attorneys or agents of any of the Administrative Agents or any other Lender,
for any damages other than actual compensatory damages in respect of any claim
for breach of contract or any other theory of liability arising out of or
related to the transactions contemplated by this Agreement or any of the other
Credit Documents, or any act, omission or event occurring in connection
therewith; and the Borrowers, each Lender and each Administrative Agent hereby,
to the fullest extent permitted under applicable law, waives, releases and
agrees not to sue or counterclaim upon any such claim for any special,
consequential or punitive damages, whether or not accrued and whether or not
known or suspected to exist in its favor.

 

15.18.     No Duty.  All attorneys, accountants, appraisers,
consultants and other professional persons (including the firms or other
entities on behalf of which any such person may act) retained by either
Administrative Agent or any Lender with respect to the transactions
contemplated by the Credit Documents shall have the right to act exclusively in
the interest of such Administrative Agent or such Lender, as the case may be,
and shall have no duty of disclosure, duty of loyalty, duty of care, or other
duty or obligation of any type or nature whatsoever to the Borrowers or to any
of their respective Subsidiaries or Affiliates, or to any other person, with
respect to any matters within the scope of such representation or related to
their activities in connection with such representation.  The Borrowers agree, on behalf of themselves
and on behalf of their Subsidiaries not to assert any claim or counterclaim
against any such persons with regard to such matters, all such claims and
counterclaims, now existing or hereafter arising, whether known or unknown,
foreseen or unforeseeable, being hereby waived, released and forever
discharged.

 

15.19.     Lenders and
Agents Not Fiduciary to Borrowers, etc.  The relationship among the Borrowers and
their respective Subsidiaries and Affiliates, on the one hand, and the
Administrative Agents and the Lenders, on the other hand, is solely that of
debtor and creditor, and the Administrative Agents and the Lenders have no
fiduciary or other special relationship with the Borrowers and any of their
respective Subsidiaries and Affiliates, and no term or provision of any Credit
Document, no course of dealing, no written or oral communication, or other
action, shall be construed so as to deem such relationship to be other than
that of debtor and creditor.

 

15.20.     Survival of
Representations and Warranties.  All representations and warranties herein shall survive the
making of Loans hereunder, the execution and delivery of this Agreement, the
Notes and any other documents the forms of which are attached as Exhibits
hereto and any other Credit Documents, the issue and delivery of the Notes, any
disposition thereof by any holder thereof, and any investigation made by either
Administrative Agent or any Lender or any other holder of any of the Notes or
on its behalf.  All statements of any
Credit Party contained in any certificate or other document delivered to either
Administrative Agent or any Lender or any holder of any Notes by or on behalf
of the Borrowers or any of their respective Subsidiaries or Affiliates pursuant
hereto or otherwise specifically for use in connection with the transactions
contemplated hereby shall

 

136

 

constitute representations and warranties by the Borrowers hereunder,
made as of the respective dates specified therein or, if no date is specified,
as of the respective dates furnished to either Administrative Agent or any
Lender.

 

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

 

15.22.     Obligations
of Borrowers. 
Except as otherwise provide in section 15.23, all obligations,
liabilities, covenants and agreements of the Borrowers in this Agreement and
any other Credit Document shall be joint and several, whether or not expressly
so stated, and the joint obligation of each Borrower shall be unconditional and
absolute and, without limiting the generality of the foregoing, except in the
case of payment in full of all Obligations, shall not be released, discharged
or otherwise affected by the occurrence, one or more times, of any act or
omission to act or delay of any kind by the other Borrower, either Administrative
Agent, any Lender or any other person or any other circumstance whatsoever
which might, but for the provisions of this section, constitute a legal or
equitable discharge of that Borrowers’ obligations under this Agreement and the
other Credit Documents.  Any right
exercisable, direction or notice that may be given or request that may be made
by the Borrowers under or in respect of this Agreement or any other Credit
Document may be exercised, given or made by any other Borrower, and the other
Borrower acknowledges and agrees that in that case it shall be bound by the
other Borrower.  In the event that any
exercise of a right, direction, notice or request made by a Borrower violates
or in any manner conflicts with or is inconsistent with that of the other Borrower,
the Administrative Agents and the Lenders will deem the exercise, direction,
notice or request of Genlyte Group as binding on the Borrowers and may ignore
those of any other Borrower.

 

15.23.     Separate
Obligations of Foreign Borrowers  and Canadian Facility Guarantors.  For the avoidance of doubt, each of the
Borrowers, Administrative Agents and Lenders acknowledges and agrees that,
notwithstanding anything to the contrary in this Agreement or any of the Credit
Documents, (a) the Obligations of any Foreign Borrower under this Agreement or
any of the Credit Documents shall be separate and distinct from the Obligations
of any other Borrower (other than a Foreign Borrower of the same country) and
shall be expressly limited to the extent of such Obligations directly
attributable to such Foreign Borrower (or other Foreign Borrower of the same
country), and (b) the Obligations of any Canadian Facility Guarantor under this
Agreement or any of the Credit Documents shall be expressly limited to the
Obligations arising under or in connection with the Canadian Revolving
Facility.  In furtherance of the
foregoing, each of the parties acknowledges and agrees that the liability of
any Foreign Borrower for the payment and performance of its covenants,
representations and warranties set forth in this Agreement and the other Credit
Documents shall be several from but not joint with the Obligations of any other
Borrower (other than a Foreign Borrower of the same country).

 

 

[The balance of this page
is intentionally blank.]

 

137

 

IN WITNESS WHEREOF, each of the
parties hereto has caused a counterpart of this Agreement to be duly executed
and delivered as of the date first above written.

 

	
   

  	
  THE GENLYTE GROUP INCORPORATED

  
	
   

  	
  as a Borrower

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  William G. Ferko

  	
   

  
	
   

  	
  Name/Title:

  	
  William G. Ferko

  	
   

  
	
   

  	
   

  	
  CFO, VP, and Treasurer

  	
   

  
	
   

  	
   

  
	
   

  	
  GENLYTE THOMAS GROUP LLC

  
	
   

  	
  as a Borrower

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  William G. Ferko

  	
   

  
	
   

  	
  Name/Title:

  	
  William G. Ferko CFO
  & VP

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GENLYTE HOLDINGS INC.

  
	
   

  	
  as a Borrower

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  William G. Ferko

  	
   

  
	
   

  	
  Name/Title:

  	
  William G. Ferko,
  Treasurer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GENLYTE LIGHTING CORPORATION

  
	
   

  	
  as a Borrower

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  William G. Ferko

  	
   

  
	
   

  	
  Name/Title::

  	
   William G. Ferko, Treasurer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GENLYTE CLP NOVA SCOTIA ULC

  
	
   

  	
  as a Borrower

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: :

  	
  /s/  William G. Ferko

  	
   

  
	
   

  	
  Name/Title:

  	
  William G. Ferko, Vice
  President

  	
   

  
											

 

[Signatures continue on
the following page.]

 

138

 

	
   

  	
  GENLYTE CGP NOVA SCOTIA ULC

  
	
   

  	
  as a Borrower

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  William G. Ferko

  	
   

  
	
   

  	
  Name/Title:

  	
  William G. Ferko, VP

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NATIONAL CITY BANK OF KENTUCKY,

  
	
   

  	
  as a Lender, a Letter
  of Credit Issuer, the Swing Line Lender, a Co-Lead Arranger and the Domestic
  Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Deroy Scott

  	
   

  
	
   

  	
  Name/Title:

  	
  Deroy Scott,  Sr. Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BANK ONE, NA, CANADA BRANCH

  
	
   

  	
  as a Lender, a Letter
  of Credit Issuer and the Canadian Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Michael Tam

  	
   

  
	
   

  	
  Name/Title:

  	
  Michael Tam,  Director

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  J.P. MORGAN SECURITIES INC.

  
	
   

  	
  as a Co-Lead Arranger

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Joseph Brenner

  	
   

  
	
   

  	
  Name/Title:

  	
  Joseph Brenner,  Sr. Vice President

  	
   

  
									

 

[Signatures continue on
the following page.]

 

139

 

	
   

  	
  BANK ONE, N.A.

  
	
   

  	
  as a Lender and a
  Letter of Credit Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Joseph Brenner

  	
   

  
	
   

  	
  Name/Title:

  	
  Joseph Brenner,  Sr. Vice President

  	
   

  
						

 

[Signatures continue on
the following page.]

 

140

 

	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
  as a Lender, a Letter of Credit Issuer and a
  Co-Documentation Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Bryan Hulker

  	
   

  
	
   

  	
  Name/Title:

  	
  Bryan Hulker, Sr. Vice
  President

  	
   

  
							

 

[Signatures continue on
the following page.]

 

141

 

	
   

  	
  SUNTRUST BANK

  
	
   

  	
  as a Lender and a
  Co-Documentation Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Anson M. Lewis

  	
   

  
	
   

  	
  Name/Title:

  	
  Anson M. Lewis,  Banking Officer

  	
   

  
						

 

[Signatures continue on
the following page.]

 

142

 

	
   

  	
  NATIONAL CITY BANK, CANADA BRANCH

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  G. William Hines

  	
   

  
	
   

  	
  Name/Title:

  	
  G. William Hines,  Sr. Vice President

  	
   

  
						

 

[Signatures continue on
the following page.]

 

143

 

	
   

  	
  PNC BANK, NATIONAL ASSOCIATION

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Chester A. Misbach, Jr.

  	
   

  
	
   

  	
  Name/Title:

  	
  Chester A. Misbach, Jr.

  	
   

  
	
   

  	
   

  	
  Sr. Vice President

  	
   

  
						

 

[Signatures continue on
the following page.]

 

144

 

	
   

  	
  FIFTH THIRD BANK, KENTUCKY, INC.

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Jeff Goodwin

  	
   

  
	
   

  	
  Name/Title:

  	
  Jeff Goodwin,  Vice President

  	
   

  
						

 

[Signatures continue on
the following page.]

 

145

 

 

	
   

  	
  THE BANK OF NEW YORK

  	
   

  
	
   

  	
  as a Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/  Kenneth R. McDonnell

  	
   

  
	
   

  	
  Name/Title:

  	
    Kenneth R.
  McDonnell

  	
   

  
	
   

  	
   

  	
    Vice
  President

  	
   

  
							

 

[Signatures continue on
the following page.]

 

146

 

	
   

  	
  BRANCH BANKING AND TRUST COMPANY

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ 
  Philip S. Poindexter

  	
   

  
	
   

  	
  Name/Title:

  	
  Philip S. Poindexter,
  Sr. Vice President

  	
   

  
						

 

[Signatures continue on
the following page.]

 

147

 

	
   

  	
  THE TORONTO DOMINION BANK

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Denis Houle

  	
   

  
	
   

  	
  Name/Title:

  	
  Denis Houle,  Relationship Manager

  	
   

  
						

 

[Signatures continue on
the following page.]

 

148

 

	
   

  	
  U.S. BANK NATIONAL ASSOCIATION

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  David A. Wombwell

  	
   

  
	
   

  	
  Name/Title:

  	
  David A. Wombwell,  Sr. Vice President

  	
   

  
						

 

[Signatures continue on
the following page.]

 

149

 

	
   

  	
  OLD NATIONAL BANK

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Darrin McCauley

  	
   

  
	
   

  	
  Name/Title:

  	
  Darrin McCauley,  Sr. Vice President

  	
   

  
						

 

[Signatures continue on
the following page.]

 

150

 

	
   

  	
  WELLS FARGO BANK, N.A.

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  David Wilsdorf

  	
   

  
	
   

  	
  Name/Title:

  	
  David Wilsdorf,  Vice President

  	
   

  
						

 

151EXHIBIT
10.2

 

 

RECEIVABLES
PURCHASE AGREEMENT

dated as of August 2, 2004

Among

GENLYTE RECEIVABLES CORPORATION, as Seller,

GENLYTE THOMAS GROUP LLC, as Servicer,

JUPITER SECURITIZATION CORPORATION,

BANK ONE, NA (MAIN OFFICE CHICAGO)

as Agent

and

THE GENLYTE GROUP INCORPORATED,

as Provider

 

 

TABLE
OF CONTENTS

 

 

	
  ARTICLE I

  	
  PURCHASE ARRANGEMENTS

  	
   

  
	
   

  	
  Section 1.1

  	
   

  	
  Purchase Facility

  	
   

  
	
   

  	
  Section 1.2

  	
   

  	
  Increases

  	
   

  
	
   

  	
  Section 1.3

  	
   

  	
  Decreases

  	
   

  
	
   

  	
  Section 1.4

  	
   

  	
  Payment Requirements

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  PAYMENTS AND COLLECTIONS

  	
   

  
	
   

  	
  Section 2.1

  	
   

  	
  Payments

  	
   

  
	
   

  	
  Section 2.2

  	
   

  	
  Collections Prior to
  Amortization

  	
   

  
	
   

  	
  Section 2.3

  	
   

  	
  Collections
  Following Amortization

  	
   

  
	
   

  	
  Section 2.4

  	
   

  	
  Application of Collections

  	
   

  
	
   

  	
  Section 2.5

  	
   

  	
  Payment Recission

  	
   

  
	
   

  	
  Section 2.6

  	
   

  	
  Maximum Purchaser Interests

  	
   

  
	
   

  	
  Section 2.7

  	
   

  	
  Purchase Option

  	
   

  
	
   

  	
  Section 2.8

  	
   

  	
  Extension
  of Scheduled Commitment Termination Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  JUPITER FUNDING

  	
   

  
	
   

  	
  Section 3.1

  	
   

  	
  Jupiter Costs

  	
   

  
	
   

  	
  Section 3.2

  	
   

  	
  Jupiter Costs Payments

  	
   

  
	
   

  	
  Section 3.3

  	
   

  	
  Calculation of Jupiter
  Costs

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  FINANCIAL INSTITUTION FUNDING

  	
   

  
	
   

  	
  Section 4.1

  	
   

  	
  Financial Institution
  Funding

  	
   

  
	
   

  	
  Section 4.2

  	
   

  	
  Yield Payments

  	
   

  
	
   

  	
  Section 4.3

  	
   

  	
  Selection
  and Continuation of Tranche Periods

  	
   

  
	
   

  	
  Section 4.4

  	
   

  	
  Financial
  Institution Discount Rates

  	
   

  
	
   

  	
  Section 4.5

  	
   

  	
  Suspension of the LIBO Rate

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  REPRESENTATIONS AND WARRANTIES

  	
   

  
	
   

  	
  Section 5.1

  	
   

  	
  Representations
  and Warranties of The Seller Parties

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  CONDITIONS OF PURCHASES

  	
   

  
	
   

  	
  Section 6.1

  	
   

  	
  Conditions
  Precedent to Initial Incremental Purchase

  	
   

  
	
   

  	
  Section 6.2

  	
   

  	
  Conditions
  Precedent to All Purchases and Reinvestments

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  COVENANTS

  	
   

  

 

i

 

	
   

  	
  Section 7.1

  	
   

  	
  Affirmative
  Covenants of the Seller Parties

  	
   

  
	
   

  	
  Section 7.2

  	
   

  	
  Negative
  Covenants of The Seller Parties

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
  ADMINISTRATION AND COLLECTION

  	
   

  
	
   

  	
  Section 8.1

  	
   

  	
  Designation of Servicer

  	
   

  
	
   

  	
  Section 8.2

  	
   

  	
  Duties of Servicer

  	
   

  
	
   

  	
  Section 8.3

  	
   

  	
  Collection Notices

  	
   

  
	
   

  	
  Section 8.4

  	
   

  	
  Responsibilities of Seller

  	
   

  
	
   

  	
  Section 8.5

  	
   

  	
  Reports

  	
   

  
	
   

  	
  Section 8.6

  	
   

  	
  Servicing Fees

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
  AMORTIZATION EVENTS

  	
   

  
	
   

  	
  Section 9.1

  	
   

  	
  Amortization Events

  	
   

  
	
   

  	
  Section 9.2

  	
   

  	
  Remedies

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
  INDEMNIFICATION

  	
   

  
	
   

  	
  Section 10.1

  	
   

  	
  Indemnities by The
  Seller Parties

  	
   

  
	
   

  	
  Section 10.2

  	
   

  	
  Increased Cost and
  Reduced Return

  	
   

  
	
   

  	
  Section 10.3

  	
   

  	
  Other Costs and Expenses

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI

  	
  THE AGENT

  	
   

  
	
   

  	
  Section 11.1

  	
   

  	
  Authorization and Action

  	
   

  
	
   

  	
  Section 11.2

  	
   

  	
  Delegation of Duties

  	
   

  
	
   

  	
  Section 11.3

  	
   

  	
  Exculpatory Provisions

  	
   

  
	
   

  	
  Section 11.4

  	
   

  	
  Reliance by Agent

  	
   

  
	
   

  	
  Section 11.5

  	
   

  	
  Non-Reliance on Agent and Other Purchasers

  	
   

  
	
   

  	
  Section 11.6

  	
   

  	
  Reimbursement and Indemnification

  	
   

  
	
   

  	
  Section 11.7

  	
   

  	
  Agent in its Individual Capacity

  	
   

  
	
   

  	
  Section 11.8

  	
   

  	
  Successor Agent

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XII

  	
  ASSIGNMENTS; PARTICIPATIONS

  	
   

  
	
   

  	
  Section 12.1

  	
   

  	
  Assignments

  	
   

  
	
   

  	
  Section 12.2

  	
   

  	
  Participations

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIII

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
  Section 13.1

  	
   

  	
  Waivers and Amendments

  	
   

  

 

ii

 

	
   

  	
  Section 13.2

  	
  Notices

  	
   

  
	
   

  	
  Section 13.3

  	
  Ratable Payments

  	
   

  
	
   

  	
  Section 13.4

  	
  Protection
  of Ownership Interests of the Purchasers

  	
   

  
	
   

  	
  Section 13.5

  	
  Confidentiality

  	
   

  
	
   

  	
  Section 13.6

  	
  Bankruptcy Petition

  	
   

  
	
   

  	
  Section 13.7

  	
  Limitation of Liability

  	
   

  
	
   

  	
  Section 13.8

  	
  CHOICE OF LAW

  	
   

  
	
   

  	
  Section 13.9

  	
  CONSENT TO JURISDICTION

  	
   

  
	
   

  	
  Section 13.10

  	
  WAIVER OF JURY TRIAL

  	
   

  
	
   

  	
  Section 13.11

  	
  Integration; Binding Effect; Survival of
  Terms

  	
   

  
	
   

  	
  Section 13.12

  	
  Counterparts; Severability; Section
  References

  	
   

  
	
   

  	
  Section 13.13

  	
  Bank One Roles

  	
   

  
	
   

  	
  Section 13.14

  	
  Characterization

  	
   

  
	
   

  	
  Section 13.15

  	
  Terms Generally

  	
   

  
	
   

  	
  Section 13.16

  	
  Accounting Terms

  	
   

  
	
   

  	
  Section 13.17

  	
  Performance Undertaking

  	
   

  
	
   

  	
   

  
	
  Exhibits and Schedules

  	
   

  
	
  Exhibit
  I

  	
  Definitions

  	
   

  
	
  Exhibit
  II

  	
  Form
  of Purchase Notice

  	
   

  
	
  Exhibit
  III

  	
  UCC
  Locations; Places of Business of the Seller Parties; Locations of Records;
  Federal Employer Identification Number(s)

  	
   

  
	
  Exhibit
  IV

  	
  Names
  of Collection Banks; Collection Accounts

  	
   

  
	
  Exhibit
  V

  	
  Form
  of Compliance Certificate

  	
   

  
	
  Exhibit
  VI

  	
  Form
  of Collection Account Agreement

  	
   

  
	
  Exhibit
  VII

  	
  Form
  of Assignment Agreement

  	
   

  
	
  Exhibit
  VIII

  	
  Credit
  and Collection Policy

  	
   

  
	
  Exhibit
  IX

  	
  Form
  of Invoice

  	
   

  
	
  Exhibit
  X

  	
  Form
  of Monthly Report

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule
  A

  	
  Commitments

  	
   

  
	
  Schedule
  B

  	
  Closing
  Documents

  	
   

  
	
  Schedule C

  	
  Performance Undertaking

  	
   

  
					

 

iii

 

GENLYTE
RECEIVABLES CORPORATION

RECEIVABLES PURCHASE AGREEMENT

 

This
Receivables Purchase Agreement dated as of August 2, 2004 is among Genlyte
Receivables Corporation, a Delaware corporation (“Seller”),
Genlyte Thomas Group LLC (“Genlyte”), a Delaware limited liability
company, as initial Servicer (in such capacity, the “Servicer”), the
entities listed on Schedule A to this
Agreement (together with any of their respective successors and assigns hereunder,
the “Financial Institutions”), Jupiter
Securitization Corporation (“Jupiter”),
Bank One, NA (Main Office Chicago), as agent for the Purchasers hereunder or
any successor agent hereunder (together with its successors and assigns
hereunder, the “Agent”) and The Genlyte
Group Incorporated, a Delaware corporation (“Provider”).  Unless defined elsewhere herein, capitalized
terms used in this Agreement shall have the meanings assigned to such terms in Exhibit I.

 

PRELIMINARY
STATEMENTS

 

Seller desires
to transfer and assign Purchaser Interests to the Purchasers from time to time.

 

Jupiter may,
in its absolute and sole discretion, purchase Purchaser Interests from Seller
from time to time.

 

In the event
that Jupiter declines to make any purchase, the Financial Institutions shall,
at the request of Seller, purchase Purchaser Interests from time to time.

 

Bank One, NA
(Main Office Chicago) has been requested and is willing to act as Agent on
behalf of Jupiter and the Financial Institutions in accordance with the terms
hereof.

 

ARTICLE I

PURCHASE ARRANGEMENTS

 

Section 1.1             Purchase Facility.

 

(a)           Upon the terms and
subject to the conditions hereof, Seller may, at its option, sell and assign
Purchaser Interests to the Agent for the benefit of one or more of the Purchasers.  In accordance with the terms and conditions
set forth herein, Jupiter may, at its option, instruct the Agent to purchase on
behalf of Jupiter, or if Jupiter shall decline to purchase, the Agent shall
purchase, on behalf of the Financial Institutions, Purchaser Interests from
time to time in an aggregate amount not to exceed at such time the lesser of
(i) the Purchase Limit and (ii) the aggregate amount of the Commitments during
the period from the date hereof to but not including the Facility Termination
Date.

 

(b)           Seller may, upon at
least thirty (30) Business Days’ notice to the Agent, terminate in whole or
reduce in part, ratably among the Financial Institutions, the unused portion of
the Purchase Limit; provided that each partial reduction of the Purchase
Limit shall be in an amount equal to $1,000,000 or an integral multiple
thereof.

 

 

Section
1.2             Increases.  Seller shall provide the
Agent with at least two Business Days’ prior notice in a form set forth as
Exhibit II hereto of each Incremental Purchase (a “Purchase Notice”).  Each Purchase Notice shall be subject to Section
6.2 hereof and, except as set forth below, shall be irrevocable and shall
specify the requested Purchase Price (which shall not be less than $1,000,000)
and date of purchase (which, in the case of any Incremental Purchase (after the
initial Incremental Purchase hereunder), shall only be on a Settlement Date)
and, in the case of an Incremental Purchase to be funded by the Financial
Institutions, the requested Discount Rate and Tranche Period.  Following receipt of a Purchase Notice, the
Agent will determine whether Jupiter agrees to make the purchase.  If Jupiter declines to make a proposed
purchase, Seller may cancel the Purchase Notice or, in the absence of such a
cancellation, the Incremental Purchase of the Purchaser Interest will be made
by the Financial Institutions.  On the
date of each Incremental Purchase, upon satisfaction of the applicable
conditions precedent set forth in Article VI, Jupiter or the Financial Institutions,
as applicable, shall deposit to the Facility Account, in immediately available
funds, no later than 12:00 noon (Chicago time), an amount equal to (i) in the
case of Jupiter, the aggregate Purchase Price of the Purchaser Interests
Jupiter is then purchasing or (ii) in the case of a Financial Institution, such
Financial Institution’s Pro Rata Share of the aggregate Purchase Price of the
Purchaser Interests the Financial Institutions are purchasing.

 

Section 1.3             Decreases. 
Seller shall provide the Agent with prior written notice in conformity
with the Required Notice Period (a “Reduction
Notice”) of any proposed reduction of Aggregate Capital from
Collections.  Such Reduction Notice
shall designate (i) the date (the “Proposed
Reduction Date”) upon which any such reduction of Aggregate Capital
shall occur (which date shall give effect to the applicable Required Notice
Period), and (ii) the amount of Aggregate Capital to be reduced which shall be
applied ratably to the Purchaser Interests of Jupiter and the Financial
Institutions in accordance with the amount of Capital (if any) owing to
Jupiter, on the one hand, and the amount of Capital (if any) owing to the
Financial Institutions (ratably, based on their respective Pro Rata Shares), on
the other hand (the “Aggregate Reduction”).  Only one (1) Reduction Notice shall be
outstanding at any time.  No Aggregate
Reduction will be made following the occurrence of the Amortization Date
without the consent of the Agent.

 

Section 1.4             Payment Requirements.  All amounts to be paid or deposited by any
Seller Party pursuant to any provision of this Agreement shall be paid or
deposited in accordance with the terms hereof no later than 11:00 a.m. (Chicago
time) on the day when due in immediately available funds, and if not received
before 11:00 a.m. (Chicago time) shall be deemed to be received on the next
succeeding Business Day.  If such
amounts are payable to a Purchaser they shall be paid to the Agent, for the
account of such Purchaser, at 1 Bank One Plaza, Chicago, Illinois 60670 until
otherwise notified by the Agent.  Upon
notice to Seller, the Agent may debit the Facility Account for all amounts due
and payable hereunder.  All computations
of Yield, Jupiter Costs, per  annum fees hereunder and per  annum
fees under the Fee Letter shall be made on the basis of a year of 360 days for
the actual number of days elapsed.  If
any amount hereunder shall be payable on a day which is not a Business Day,
such amount shall be payable on the next succeeding Business Day.

 

2

 

ARTICLE II

PAYMENTS AND COLLECTIONS

 

Section 2.1             Payments. 
Notwithstanding any limitation on recourse contained in this Agreement,
Seller shall immediately pay to the Agent when due, for the account of the relevant
Purchaser or Purchasers on a full recourse basis, (i) such fees as set forth in
the Fee Letter (which fees shall be sufficient to pay all fees owing to the
Financial Institutions), (ii) all Jupiter Costs, (iii) all amounts payable as
Yield, (iv) all amounts payable as Deemed Collections (which shall be
immediately due and payable by Seller and applied to reduce outstanding
Aggregate Capital hereunder in accordance with Sections
2.2 and 2.3 hereof), (v) all
amounts required pursuant to Section 2.6,
(vi) all amounts payable pursuant to Article X,
if any, (vii) all Servicer costs and expenses, including the Servicing
Fee,  in connection with servicing,
administering and collecting the Receivables, (viii) all Broken Funding Costs
and (ix) all Default Fees (collectively, the “Obligations”).  If any Person fails to pay any of the
Obligations when due, such Person agrees to pay, on demand, the Default Fee in
respect thereof until paid. 
Notwithstanding the foregoing, no provision of this Agreement or the Fee
Letter shall require the payment or permit the collection of any amounts
hereunder in excess of the maximum permitted by applicable law.  If at any time Seller receives any
Collections or is deemed to receive any Collections, Seller shall immediately
pay such Collections or Deemed Collections to the Servicer for application in
accordance with the terms and conditions hereof and, at all times prior to such
payment, such Collections or Deemed Collections shall be held in trust by
Seller for the exclusive benefit of the Purchasers and the Agent.

 

Section 2.2             Collections Prior to Amortization.  Prior to the Amortization Date, any
Collections and/or Deemed Collections received by the Servicer shall be set
aside and held in trust by the Servicer for the payment of any accrued and
unpaid Aggregate Unpaids or for a Reinvestment as provided in this Section 2.2. 
If at any time any Collections are received by the Servicer prior to the
Amortization Date, (i) the Servicer shall set aside the Termination Percentage
(hereinafter defined) of Collections evidenced by the Purchaser Interests of
each Terminating Financial Institution and (ii) Seller hereby requests and the
Purchasers (other than any Terminating Financial Institutions) hereby agree to
make, simultaneously with such receipt, a reinvestment (each a “Reinvestment”) with that portion of the
balance of each and every Collection received by the Servicer that is part of
any Purchaser Interest (other than any Purchaser Interests of Terminating
Financial Institutions), such that after giving effect to such Reinvestment,
the amount of Capital of such Purchaser Interest immediately after such receipt
and corresponding Reinvestment shall be equal to the amount of Capital
immediately prior to such receipt.  On
each Settlement Date prior to the occurrence of the Amortization Date, the
Servicer shall remit to the Agent’s account the amounts set aside during the
preceding Settlement Period that have not been subject to a Reinvestment and
apply such amounts (if not previously paid in accordance with Section 2.1) first,
to reduce unpaid Jupiter Costs, Yield and other Obligations and second, to reduce the Capital of all
Purchaser Interests of Terminating Financial Institutions, applied ratably to
each Terminating Financial Institution according to its respective Termination
Percentage.  If such Capital, Jupiter
Costs, Yield and other Obligations shall be reduced to zero, any additional
Collections received by the Servicer (i) if applicable, shall be remitted to
the Agent’s account no later than 11:00 a.m. (Chicago time) to the extent
required to fund any Aggregate Reduction on such Settlement Date and (ii) any
balance remaining thereafter shall be remitted from the Servicer to Seller on
such Settlement Date.  Each Terminating

 

3

 

Financial Institution shall, solely to the extent of
any Purchaser Interests funded by such Terminating Financial Institution, be
allocated a ratable portion of Collections from the Scheduled Commitment
Termination Date of such Financial Institution until such Terminating Financing
Institution’s Capital shall be paid in full. 
This ratable portion shall be calculated on the Scheduled Commitment
Termination Date of each Terminating Financial Institution as a percentage
equal to (i) Capital of such Terminating Financial Institution outstanding on
its Scheduled Commitment Termination Date, divided
by (ii) the Aggregate Capital
outstanding on such Scheduled Commitment Termination Date (the “Termination
Percentage”).  Each Terminating
Financial Institution’s Termination Percentage shall remain constant prior to
the Amortization Date.  On and after the
Amortization Date, each Termination Percentage shall be disregarded, and each
Terminating Financial Institution’s Capital shall be reduced ratably with all
Financial Institutions in accordance with Section
2.3.

 

Section 2.3             Collections Following Amortization.  On the Amortization Date and on each day
thereafter, the Servicer shall set aside and hold in trust, for the holder of
each Purchaser Interest, all Collections received on such day and an additional
amount for the payment of any accrued and unpaid Obligations owed by Seller and
not previously paid by Seller in accordance with Section
2.1.  On and after the
Amortization Date, the Servicer shall, at any time upon the request from time
to time by (or pursuant to standing instructions from) the Agent (i) remit to
the Agent’s account the amounts set aside pursuant to the preceding sentence,
and (ii) apply such amounts to reduce the Capital associated with each such
Purchaser Interest and any other Aggregate Unpaids.

 

Section 2.4             Application of Collections.  If there shall be insufficient funds on
deposit for the Servicer to distribute funds in payment in full of the
aforementioned amounts pursuant to Section 2.2
or 2.3 (as applicable), the Servicer
shall distribute funds:

 

first,
to the payment of the Servicer’s reasonable out-of-pocket costs and expenses in
connection with servicing, administering and collecting the Receivables ,
including the Servicing Fee, if Seller or one of its Affiliates is not then
acting as the Servicer,

 

second, to
the reimbursement of the Agent’s costs of collection and enforcement of this
Agreement,

 

third,
ratably to the payment of all accrued and unpaid fees under the Fee Letter,
Jupiter Costs and Yield,

 

fourth
(to the extent applicable) to the ratable reduction of the Aggregate Capital
(without regard to any Termination Percentage),

 

fifth,
for the ratable payment of all other unpaid Obligations, provided that to the extent such Obligations
relate to the payment of Servicer costs and expenses, including the Servicing
Fee, when Seller or one of its Affiliates is acting as the Servicer, such costs
and expenses will not be paid until after the payment in full of all other
Obligations, and

 

sixth,
after the Aggregate Unpaids have been indefeasibly reduced to zero, to Seller.

 

4

 

Collections
applied to the payment of Aggregate Unpaids shall be distributed in accordance
with the aforementioned provisions, and, giving effect to each of the
priorities set forth in Section 2.4
above, shall be shared ratably (within each priority) among the Agent and the
Purchasers in accordance with the amount of such Aggregate Unpaids owing to
each of them in respect of each such priority.

 

Section 2.5             Payment Recission.  No payment of any of the Aggregate Unpaids shall be considered
paid or applied hereunder to the extent that, at any time, all or any portion
of such payment or application is rescinded by application of law or judicial
authority, or must otherwise be returned or refunded for any reason.  Seller shall remain obligated for the amount
of any payment or application so rescinded, returned or refunded, and shall
promptly pay to the Agent (for application to the Person or Persons who
suffered such recission, return or refund) the full amount thereof, plus the
Default Fee from the date of any such recission, return or refunding.

 

Section 2.6             Maximum Purchaser Interests.  Seller shall ensure that the Purchaser
Interests of the Purchasers shall at no time exceed in the aggregate 100%.  If the aggregate of the Purchaser Interests
of the Purchasers exceeds 100%, Seller shall pay to the Agent within one (1)
Business Day an amount to be applied to reduce the Aggregate Capital (as
allocated by the Agent), such that after giving effect to such payment the
aggregate of the Purchaser Interests equals or is less than 100%.

 

Section 2.7             Purchase Option.  In addition to Seller’s rights pursuant to Section 1.3, Seller shall have the right
(upon 30 days prior written notice to the Agent), to repurchase from the
Purchasers all, but not less than all, of the then outstanding Purchaser
Interests.  The purchase price in respect
thereof shall be an amount equal to the Aggregate Unpaids through the date of
such repurchase, payable in immediately available funds.  Such repurchase shall be without
representation, warranty or recourse of any kind by, on the part of, or against
any Purchaser or the Agent.

 

Section 2.8             Extension of
Scheduled Commitment Termination Date. 
The Seller may advise the Agent and each Financial Institution in
writing of its desire to extend the Scheduled Commitment Termination Date with
respect to each Financial Institution for an additional 364 days,  provided
such request is made not more than 60 days prior to, and not less than 30 days
prior to, the then current Scheduled Commitment Termination Date with respect
to any such Financial Institution.  In
the event that the Financial Institutions are agreeable to such extension, the
Agent shall so notify the Seller (it  being  understood that
a Financial Institution may accept or decline such a request in its sole
discretion and on such terms as it may), and the Seller, the Agent and the
Purchasers shall enter into such documents as the accepting Financial
Institutions may deem necessary or appropriate to reflect such extension. In
the event any Financial Institution (each such declining Financial Institution,
a “Terminating Financial Institution”) declines the request for such
extension, such Financial Institution shall so notify the Agent and the Seller
of such determination; provided, that the failure of to notify the
Seller of such determination shall not affect the understanding and agreement
that the applicable Financial Institution shall have refused to grant such
requested extension.  Notwithstanding
anything to the contrary herein, the failure of one or more Financial
Institutions to accept the Seller’s request to extend the Scheduled Commitment
Termination Date shall not affect the right of the other Financial Institutions
to accept such request (it  being  understood that if any
such Financial 

 

5

 

Institution does not accept such extension request,
then the Purchase Limit shall be reduced by an amount equal to the Commitment
of such declining Financial Institution).

 

ARTICLE III

JUPITER FUNDING

 

Section 3.1             Jupiter Costs.  Seller shall pay Jupiter Costs with respect to the Capital
associated with each Purchaser Interest of Jupiter for each day that any
Capital in respect of such Purchaser Interest is outstanding and is funded
other than pursuant to any Funding Agreement. 
Each Purchaser Interest not funded pursuant to a Funding Agreement will
accrue Jupiter Costs for each day during the related Calculation Period at a
rate equal to USD-LIBOR-BBA. 
Notwithstanding anything herein to the contrary, if at any time, any
Purchaser Interest of Jupiter is funded by it through any Funding Source under
any Funding Agreement such Purchaser Interest shall, for all purposes hereof,
accrue interest (beginning on the date so funded by any such Funding Source)
and be payable to Jupiter, in the manner described in Article IV, below.

 

Section 3.2             Jupiter Costs Payments.  On each Settlement Date, Seller shall pay to
the Agent (for the benefit of Jupiter) an aggregate amount equal to all accrued
and unpaid Jupiter Costs in respect of the Capital associated with all
Purchaser Interests of Jupiter for the immediately preceding Calculation Period
in accordance with Article II.

 

Section 3.3             Calculation of Jupiter Costs.  On the fifth Business Day immediately
preceding each Settlement Date, Jupiter shall calculate the aggregate amount of
Jupiter Costs for the applicable Calculation Period and shall notify Seller of
such aggregate amount.

 

ARTICLE IV

FINANCIAL INSTITUTION FUNDING

 

Section 4.1             Financial Institution Funding.  Each Purchaser Interest of the Financial
Institutions (or of Jupiter, in the event Jupiter funds all or any portion of a
Purchaser Interest under any Funding Agreement as described in Section 3.1)
shall accrue Yield for each day during its Tranche Period at either the LIBO
Rate or the Prime Rate in accordance with the terms and conditions hereof.  Until Seller gives notice to the Agent of
another Discount Rate in accordance with Section
4.4, the initial Discount Rate for any Purchaser Interest
transferred to the Financial Institutions pursuant to the terms and conditions
hereof shall be the Prime Rate.

 

Section 4.2             Yield Payments.  On the Settlement Date for each Purchaser Interest of the
Financial Institutions (or, if applicable, Jupiter), Seller shall pay to the
Agent (for the benefit of the Financial Institutions and/or Jupiter, as applicable)
an aggregate amount equal to the accrued and unpaid Yield for the entire
Tranche Period of each such Purchaser Interest in accordance with Article II.

 

Section 4.3             Selection and Continuation of Tranche Periods.

 

(a)           With consultation from
(and approval by) the Agent, Seller shall from time to time request Tranche
Periods for the Purchaser Interests of the Financial Institutions, provided
that, if at any time the Financial Institutions shall have a Purchaser
Interest, Seller shall 

 

6

 

always request Tranche Periods such that at least one
Tranche Period shall end on the date specified in clause (A) of the definition
of Settlement Date.

 

(b)           Seller or the Agent,
upon notice to and consent by the other received at least three (3) Business
Days prior to the end of a Tranche Period (the “Terminating
Tranche”) for any Purchaser Interest, may, effective on the last day
of the Terminating Tranche:  (i) divide
any such Purchaser Interest into multiple Purchaser Interests, (ii) combine any
such Purchaser Interest with one or more other Purchaser Interests that have a
Terminating Tranche ending on the same day as such Terminating Tranche or (iii)
combine any such Purchaser Interest with a new Purchaser Interests to be purchased
on the day such Terminating Tranche ends, provided,
that in no event may a Purchaser Interest of Jupiter be combined with a
Purchaser Interest of the Financial Institutions.

 

Section 4.4             Financial Institution Discount Rates.  Seller may select the LIBO Rate or the Prime
Rate for each Purchaser Interest of the Financial Institutions.  Seller shall by 11:00 a.m. (Chicago time):
(i) at least three (3) Business Days prior to the expiration of any Terminating
Tranche with respect to which the LIBO Rate is being requested as a new
Discount Rate and (ii) at least one (1) Business Day prior to the expiration of
any Terminating Tranche with respect to which the Prime Rate is being requested
as a new Discount Rate, give the Agent irrevocable notice of the new Discount
Rate for the Purchaser Interest associated with such Terminating Tranche.  Until Seller gives notice to the Agent of
another Discount Rate, the initial Discount Rate for any Purchaser Interest
transferred to the Financial Institutions pursuant to the terms and conditions
hereof shall be the Prime Rate.

 

Section 4.5             Suspension of the LIBO Rate.

 

(a)           If any Financial
Institution notifies the Agent that it has determined that funding its Pro Rata
Share of the Purchaser Interests of the Financial Institutions at a LIBO Rate
would violate any applicable law, rule, regulation, or directive of any
governmental or regulatory authority, whether or not having the force of law,
or that (i) deposits of a type and maturity appropriate to match fund its
Purchaser Interests at such LIBO Rate are not available or (ii) such LIBO Rate
does not accurately reflect the cost of acquiring or maintaining a Purchaser
Interest at such LIBO Rate, then the Agent shall suspend the availability of
such LIBO Rate and require Seller to select the Prime Rate for any Purchaser
Interest accruing Yield at such LIBO Rate.

 

(b)           If less than all of the
Financial Institutions give a notice to the Agent pursuant to Section 4.5(a), each Financial Institution
which gave such a notice shall be obliged, at the request of Seller, Jupiter or
the Agent, to assign all of its rights and obligations hereunder to (i) another
Financial Institution or (ii) another funding entity nominated by Seller or the
Agent that is acceptable to Jupiter and willing to participate in this
Agreement through the Scheduled Commitment Termination Date in the place of
such notifying Financial Institution; provided
that (i) the notifying Financial Institution receives payment in full, pursuant
to an Assignment Agreement, of an amount equal to such notifying Financial
Institution’s Pro Rata Share of the Capital and Yield owing to all of the
Financial Institutions and all accrued but unpaid fees and other costs and
expenses payable in respect of its Pro Rata Share of the Purchaser Interests of
the Financial Institutions, and (ii) the replacement Financial Institution
otherwise satisfies the requirements of Section
12.1(b).

 

7

 

ARTICLE V

REPRESENTATIONS AND WARRANTIES

 

Section 5.1             Representations and Warranties of The Seller Parties.  Each Seller Party hereby represents and
warrants to the Agent and the Purchasers, as to itself, as of the date hereof
and as of the date of each Incremental Purchase and the date of each
Reinvestment that:

 

(a)           Corporate Existence and Power.  Such Seller Party is duly organized, validly
existing and in good standing under the laws of its state of organization.  Such Seller Party is duly qualified to do
business and is in good standing as a foreign organization, and has and holds
all power and all governmental licenses, authorizations, consents and approvals
required to carry on its business in each jurisdiction in which its business is
conducted.

 

(b)           Power and Authority; Due Authorization, Execution and
Delivery.  The execution and
delivery by such Seller Party of this Agreement and each other Transaction
Document to which it is a party, and the performance of its obligations
hereunder and thereunder and, in the case of Seller, Seller’s use of the proceeds
of purchases made hereunder, are within its organizational powers and authority
and have been duly authorized by all necessary action on its part.  This Agreement and each other Transaction
Document to which such Seller Party is a party has been duly executed and
delivered by such Seller Party.

 

(c)           No Conflict. 
The execution and delivery by such Seller Party of this Agreement and
each other Transaction Document to which it is a party, and the performance of
its obligations hereunder and thereunder do not contravene or violate (i) its
organizational documents, (ii) any law, rule or regulation applicable to it,
(iii) any restrictions under any agreement, contract or instrument to which it
is a party or by which it or any of its property is bound, or (iv) any order,
writ, judgment, award, injunction or decree binding on or affecting it or its
property, and do not result in the creation or imposition of any Adverse Claim
on assets of such Seller Party or its Subsidiaries (except as created
hereunder); and no transaction contemplated hereby requires compliance with any
bulk sales act or similar law.

 

(d)           Governmental Authorization.  Other than the filing of the financing
statements required hereunder, no authorization or approval or other action by,
and no notice to or filing with, any governmental authority or regulatory body
is required for the due execution and delivery by such Seller Party of this
Agreement and each other Transaction Document to which it is a party and the
performance of its obligations hereunder and thereunder.

 

(e)           Actions, Suits.  There are no actions, suits, or proceedings pending or, to the
knowledge of such Genlyte Party, threatened against or affecting the Seller in
or before any court, arbitrator or other body. 
There are no actions, suits or proceedings pending or, to the knowledge
of such Genlyte Party, threatened against or affecting any other Genlyte Party
or any of its Subsidiaries in or before any court, arbitrator or other body (i)
that have resulted in, or that such Genlyte Party reasonably expects to result
in, liability for damages in excess of fifteen percent (15%) of the
Consolidated Net Worth, (ii) which question the validity or enforceability of
any of the Transaction Documents, or of any action to be taken by such Genlyte
Party pursuant to any of the Transaction Documents to which it is a party, or
(iii) which could reasonably be expected to materially adversely affect the
ability of any Seller Party to perform its 

 

8

 

obligations under the Transaction Documents to which
it is a party or the collectibility of the Receivables generally or of any
material portion of the Receivables. 
Such Seller Party is not in default with respect to any order of any
court, arbitrator or governmental body.

 

(f)            Binding Effect.  This Agreement and each other Transaction Document to which such
Seller Party is a party constitute the legal, valid and binding obligations of
such Seller Party enforceable against such Seller Party in accordance with
their respective terms, except as such enforcement may be limited by applicable
bankruptcy, insolvency, reorganization or other similar laws relating to or
limiting creditors’ rights generally and by general principles of equity
(regardless of whether enforcement is sought in a proceeding in equity or at
law).

 

(g)           Accuracy of Information.  All information heretofore furnished by such
Seller Party or any of its Affiliates to the Agent or the Purchasers for
purposes of or in connection with this Agreement, any of the other Transaction
Documents or any transaction contemplated hereby or thereby is, and all such
information hereafter furnished by such Seller Party or any of its Affiliates
to the Agent or the Purchasers will be, true and accurate in every material
respect on the date such information is stated or certified and does not and
will not contain any material misstatement of fact or omit to state a material
fact or any fact necessary to make the statements contained therein not
misleading.

 

(h)           Use of Proceeds.  No proceeds of any purchase hereunder will be used (i) for a
purpose that violates, or would be inconsistent with, Regulation T, U or X
promulgated by the Board of Governors of the Federal Reserve System from time
to time or (ii) to acquire any security in any transaction which is subject to
Section 12, 13 or 14 of the Securities Exchange Act of 1934, as amended.

 

(i)            Good Title. 
Immediately prior to each purchase hereunder, Seller shall be the legal
and beneficial owner of the Receivables and Related Security with respect
thereto, free and clear of any Adverse Claim, except as created by the
Transaction Documents.  There have been
duly filed all financing statements or other similar instruments or documents
necessary under the UCC (or any comparable law) of all appropriate
jurisdictions to perfect Seller’s ownership interest in each Receivable, its
Collections and the Related Security.

 

(j)            Perfection. 
This Agreement, together with the filing of the financing statements
contemplated hereby, is effective to, and shall, upon each purchase hereunder,
transfer to the Agent for the benefit of the relevant Purchaser or Purchasers
(and the Agent for the benefit of such Purchaser or Purchasers shall acquire
from Seller) a valid and perfected first priority undivided percentage
ownership or security interest in each Receivable existing or hereafter arising
and in the Related Security and Collections with respect thereto, free and
clear of any Adverse Claim, except as created by the Transactions Documents.  There have been duly filed all financing
statements or other similar instruments or documents necessary under the UCC
(or any comparable law) of all appropriate jurisdictions to perfect the Agent’s
(on behalf of the Purchasers) ownership or security interest in the
Receivables, the Related Security and the Collections.

 

(k)           Places of Business and Locations of Records.  The “location” (as such term is used in the
applicable UCC) and the principal places of business and chief executive 

 

9

 

office of such Seller Party and the offices where it
keeps any material portion of its Records are located at the address(es) listed
on Exhibit III or such other locations
of which the Agent has been notified in accordance with Section 7.2(a) in jurisdictions where all
action required by Section 13.4(a) has
been taken and completed.  Seller’s
Federal Employer Identification Number is correctly set forth on Exhibit III.

 

(l)            Collections. 
The conditions and requirements set forth in Section
7.1(j) and Section 8.2 have
at all times been satisfied and duly performed.  The names and addresses of all Collection Banks, together with
the account numbers of the Collection Accounts of Seller at each Collection
Bank and the post office box number of each Lock-Box, are listed on Exhibit IV. 
Seller has not granted any Person, other than the Agent as contemplated
by this Agreement, dominion and control of any Lock-Box or Collection Account,
or the right to take dominion and control of any such Lock-Box or Collection
Account at a future time or upon the occurrence of a future event.

 

(m)          Material Adverse Effect.  (i) Since December 31, 2003, except as
disclosed in writing to the Agent prior to the date hereof, no event has
occurred that has had or could reasonably be expected to have a Material
Adverse Effect.

 

(n)           Names. 
In the past five (5) years, Seller has not used any corporate names,
trade names or assumed names other than the name in which it has executed this
Agreement.

 

(o)           Ownership of Seller Parties.  Provider owns, directly or indirectly, 100%
of the issued and outstanding capital equity of each other Seller Party, free
and clear of any Adverse Claim.  Such
capital stock is validly issued, fully paid and nonassessable, and there are no
options, warrants or other rights to acquire securities of Seller.

 

(p)           Not a Holding Company or an Investment Company.  Such Seller Party is not a “holding company” or a “subsidiary holding company” of a “holding company” within the meaning of the Public
Utility Holding Company Act of 1935, as amended, or any successor statute.  Such Seller Party is not an “investment company” within the meaning of the
Investment Company Act of 1940, as amended, or any successor statute.

 

(q)           Compliance with Law.  Such Seller Party has complied in all
respects with all applicable laws, rules, regulations, orders, writs,
judgments, injunctions, decrees or awards to which it may be subject, except
for any failure to obtain and maintain in effect, or non-compliance, which,
individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect.  Each
Receivable, together with the Contract related thereto, does not contravene any
laws, rules or regulations applicable thereto (including,
without limitation, laws, rules and
regulations relating to truth in lending, fair credit billing, fair credit
reporting, equal credit opportunity, fair debt collection practices and
privacy), and no part of such Contract is in violation of any such law, rule or
regulation.

 

(r)            Compliance with Credit and Collection Policy.  Such Seller Party has complied in all
material respects with the Credit and Collection Policy with regard to each
Receivable and the related Contract, and has not made any change to such Credit
and Collection 

 

10

 

Policy, except such material change as to which the
Agent has been notified in accordance with Section
7.1(a)(vi).

 

(s)           Payments to Originator.  With respect to each Receivable transferred
to Seller under the Receivables Sale Agreement, Seller has given reasonably
equivalent value to Originator in consideration therefor and such transfer was
not made for or on account of an antecedent debt.  No transfer by Originator of any Receivable under the Receivables
Sale Agreement is or may be voidable under any section of the Bankruptcy Reform
Act of 1978 (11 U.S.C. §§ 101 et seq.),
as amended.

 

(t)            Enforceability of Contracts.  Each Contract with respect to each
Receivable is effective to create, and has created, a legal, valid and binding
obligation of the related Obligor to pay the Outstanding Balance of the
Receivable created thereunder and any accrued interest thereon, enforceable
against the Obligor in accordance with its terms, except as such enforcement
may be limited by applicable bankruptcy, insolvency, reorganization or other
similar laws relating to or limiting creditors’ rights generally and by general
principles of equity (regardless of whether enforcement is sought in a
proceeding in equity or at law).

 

(u)           Eligible Receivables.  Each Receivable included in the Net
Receivables Balance as an Eligible Receivable on the date of its purchase under
the Receivables Sale Agreement was an Eligible Receivable on such purchase
date.

 

(v)           Net Receivables Balance.  Seller has determined that, immediately
after giving effect to each purchase hereunder, the Net Receivables Balance is
at least equal to the sum of (i) the Aggregate Capital, plus (ii) the Aggregate Reserves.

 

(w)          Accounting. 
The manner in which such Seller Party accounts for the transactions
contemplated by this Agreement and the Receivables Sale Agreement does not
jeopardize the true sale analysis.

 

ARTICLE VI

CONDITIONS OF PURCHASES

 

Section 6.1             Conditions Precedent to Initial Incremental Purchase.  The initial Incremental Purchase of a
Purchaser Interest under this Agreement is subject to the conditions precedent
that (a) the Agent shall have received on or before the date of such purchase
those documents listed on Schedule B
and (b) the Agent shall have received all fees and expenses required to be paid
on such date pursuant to the terms of this Agreement and the Fee Letter.

 

Section 6.2             Conditions Precedent to All Purchases and Reinvestments.  Each purchase of a Purchaser Interest (other
than pursuant to Section 13.1) and each
Reinvestment shall be subject to the further conditions precedent that (a) in
the case of each such purchase or Reinvestment:  (i) the Servicer shall have delivered to the Agent on or prior to
the date of such purchase, in form and substance satisfactory to the Agent, all
Monthly Reports as and when due under Section 8.5
and (ii) upon the Agent’s request, the Servicer shall have delivered to the
Agent at least three (3) days prior to such purchase or Reinvestment an interim
Monthly Report showing the amount of Eligible Receivables; (b) the Facility
Termination Date shall not have occurred; (c) the Agent shall have received
such other approvals, opinions or documents as it 

 

11

 

may reasonably request and (d) on the date of each
such Incremental Purchase or Reinvestment, the following statements shall be
true (and acceptance of the proceeds of such Incremental Purchase or
Reinvestment shall be deemed a representation and warranty by Seller that such
statements are then true):

 

(i)            the representations
and warranties set forth in Section 5.1
are true and correct on and as of the date of such Incremental Purchase or
Reinvestment as though made on and as of such date;

 

(ii)           no event has occurred
and is continuing, or would result from such Incremental Purchase or
Reinvestment, that will constitute an Amortization Event, and no event has
occurred and is continuing, or would result from such Incremental Purchase or
Reinvestment, that would constitute a Potential Amortization Event; and

 

(iii)          the Aggregate Capital
does not exceed the Purchase Limit and the aggregate Purchaser Interests do not
exceed 100%.

 

It is expressly understood that each
Reinvestment shall, unless otherwise directed by the Agent or any Purchaser,
occur automatically on each day that the Servicer shall receive any Collections
without the requirement that any further action be taken on the part of any
Person and notwithstanding the failure of Seller to satisfy any of the
foregoing conditions precedent in respect of such Reinvestment.  The failure of Seller to satisfy any of the
foregoing conditions precedent in respect of any Reinvestment shall give rise
to a right of the Agent, which right may be exercised at any time on demand of
the Agent, to rescind the related purchase and direct Seller to pay to the
Agent for the benefit of the Purchasers an amount equal to the Collections
prior to the Amortization Date that shall have been applied to the affected Reinvestment.

 

ARTICLE VII

COVENANTS

 

Section 7.1             Affirmative Covenants of the Seller Parties.  Until the date on which the Aggregate
Unpaids have been indefeasibly paid in full and this Agreement terminates in
accordance with its terms, each Seller Party hereby covenants, as to itself, as
set forth below:

 

(a)           Financial Reporting.  Such Seller Party will maintain, for itself
and each of its Subsidiaries, a system of accounting established and
administered in accordance with GAAP, and furnish or cause to be furnished to
the Agent:

 

(i)            Annual Reporting.  Within 90 days after the close of each of its respective fiscal
years, audited, unqualified financial statements (which shall include balance
sheets, statements of income and retained earnings and a statement of cash
flows) for such Seller Party for such fiscal year certified in a manner
acceptable to the Agent by independent public accountants acceptable to the
Agent.

 

(ii)           Quarterly Reporting.  Within 45 days after the close of the first
three (3) quarterly periods of each of its respective fiscal years, balance
sheets of such Seller Party as at the close of each such period and statements
of income and retained earnings and a statement of cash flows for each such
Person for the period from the 

 

12

 

beginning of such fiscal year to the end of such quarter, all certified
by an Authorized Officer.

 

(iii)          Compliance Certificate.  Together with the financial statements
required hereunder, a compliance certificate in substantially the form of Exhibit V signed by such Seller Party’s
Authorized Officer and dated the date of such annual financial statement or
such quarterly financial statement, as the case may be.

 

(iv)          S.E.C. Filings.  Promptly upon the filing thereof, notice of
any filing which Provider or any of its Subsidiaries files with the Securities
and Exchange Commission.

 

(v)           Copies of Notices.  Promptly upon its receipt of any notice, request for consent,
financial statements, certification, report or other communication under or in
connection with any Transaction Document from any Person other than the Agent
or Jupiter, copies of the same.

 

(vi)          Change in Credit and Collection Policy.  At least thirty (30) days prior to the
effectiveness of any material change in or material amendment to the Credit and
Collection Policy, a copy of the Credit and Collection Policy then in effect
and a notice (A) indicating such change or amendment, and (B) if such proposed
change or amendment would be reasonably likely to adversely affect the
collectibility of the Receivables or decrease the credit quality of any newly
created Receivables, requesting the Agent’s consent thereto (which shall not be
unreasonably withheld).

 

(vii)         Other Information.  Promptly, from time to time, such other information, documents,
records or reports relating to the Receivables or the condition or operations,
financial or otherwise, of such Seller Party as the Agent may from time to time
reasonably request in order to protect the interests of the Agent and the
Purchasers under or as contemplated by this Agreement.

 

(b)           Notices. 
Such Seller Party will notify the Agent in writing of any of the
following promptly (and in any event within three Business Days) upon learning
of the occurrence thereof, describing the same and, if applicable, the steps
being taken with respect thereto:

 

(i)            Amortization Events or Potential Amortization Events.  The occurrence of each Amortization Event
and each Potential Amortization Event, by a statement of an Authorized Officer of
such Seller Party.

 

(ii)           Judgment and Proceedings.  Any of the following:  (A) 
the institution of any litigation, arbitration proceeding or
governmental or regulatory investigation or proceeding pending against or
involving the Seller; (B) the entry of any judgment or decree against the
Seller; (C) any litigation or governmental or regulatory investigation or
proceeding pending against or involving any other Seller Party or any Affiliate
thereof which could reasonably be expected to have a Material Adverse Effect;
or (D) the entry of any judgment or decree against any other Seller Party or
any Affiliate thereof which could reasonably be expected to have a Material
Adverse Effect.

 

13

 

(iii)          Material Adverse Effect.  The occurrence of any event or condition
that has had, or could reasonably be expected to have, a Material Adverse
Effect.

 

(iv)          Termination Date.  The occurrence of the “Termination Date” under and as defined in
the Receivables Sale Agreement.

 

(v)           Defaults Under Other Agreements.  The occurrence of a default or an event of
default under any other financing arrangement pursuant to which such Seller
Party is a debtor or an obligor.

 

(vi)          Downgrade of Provider.  Any rating, or any downgrade or withdrawal
in rating, of any Indebtedness of Provider or its Subsidiaries by Standard
& Poor’s Ratings Group or by Moody’s Investors Service, Inc., setting forth
the Indebtedness affected and the nature of such event.

 

(c)           Compliance with Laws and Preservation of Corporate
Existence.  Such Seller Party
will comply in all respects with all applicable laws, rules, regulations,
orders, writs, judgments, injunctions, decrees or awards to which it may be
subject other than those being contested in good faith by appropriate
proceedings, as to which adequate reserves are established to the extent
required under GAAP; provided, however, a failure to comply
with such laws, rules, regulations, orders, writs, judgments, injunctions,
decrees or awards shall not constitute a breach of this Section 7.1(c)
if such noncompliance could not reasonably be expected to have a Material
Adverse Effect.  Such Seller Party will
preserve and maintain (i) its organizational existence and good standing under
the laws of its state of formation, and (ii) all material governmental rights,
privileges, qualifications, permits, licenses and franchises necessary or
desirable in the normal conduct of its business, except governmental rights,
privileges, qualifications, permits, licenses and franchises the loss of which
could not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.  Such Seller
Party will use reasonable efforts, in the ordinary course of business, to preserve
its business organization and goodwill.

 

(d)           Audits.  Such Seller Party will furnish to the Agent
from time to time such information with respect to it and the Receivables as
the Agent may reasonably request.  Such
Seller Party will, from time to time during regular business hours as requested
by the Agent upon reasonable notice and at the sole cost of such Seller Party,
permit the Agent, or its agents or representatives (and shall cause each
Originator to permit the Agent or its agents or representatives), (i) to
examine and make copies of and abstracts from all Records in the possession or
under the control of such Person relating to the Receivables and the Related
Security, including, without limitation, the related Contracts, and (ii) to
visit the offices and properties of such Person for the purpose of examining
such materials described in clause (i) above, and to discuss matters
relating to such Person’s financial condition or the Receivables and the
Related Security or any Person’s performance under any of the Transaction
Documents or any Person’s performance under the Contracts and, in each case,
with any of the officers or employees of Seller or the Servicer having
knowledge of such matters.

 

14

 

(e)           Keeping and Marking of Records and Books.

 

(i)            The Servicer will (and
will cause each Originator to) maintain and implement administrative and
operating procedures (including, without limitation, an ability to recreate
records evidencing Receivables in the event of the destruction of the originals
thereof), and keep and maintain all documents, books, records and other
information reasonably necessary or advisable for the collection of all
Receivables (including, without limitation, records adequate to permit the
immediate identification of each new Receivable and all Collections of and
adjustments to each existing Receivable). 
The Servicer will (and will cause Originator to) give the Agent notice
of any material change in the administrative and operating procedures referred
to in the previous sentence.

 

(ii)           Such Seller Party will
(and will cause each Originator to) (A) on or prior to the date hereof, mark
its master data processing records and other books and records relating to the
Purchaser Interests with a legend, acceptable to the Agent, describing the
Purchaser Interests and (B) upon the request of the Agent (x) mark each
Contract with a legend describing the Purchaser Interests and (y) deliver to
the Agent all Contracts (including, without limitation, all multiple originals
of any such Contract) relating to the Receivables.

 

(f)            Compliance with Contracts and Credit and Collection
Policy.  Such Seller Party
will (and will cause each Originator to) timely and fully (i) perform and
comply with all provisions, covenants and other promises required to be
observed by it under the Contracts related to the Receivables, and (ii) comply
in all respects with the Credit and Collection Policy in regard to each
Receivable and the related Contract.

 

(g)           Performance and Enforcement of Receivables Sale Agreement.  Seller will, and will require each
Originator to, perform each of their respective obligations and undertakings
under and pursuant to the Receivables Sale Agreement, will purchase Receivables
thereunder in strict compliance with the terms thereof and will vigorously
enforce the rights and remedies accorded to Seller under the Receivables Sale
Agreement.  Seller will take all actions
to perfect and enforce its rights and interests (and the rights and interests
of the Agent and the Purchasers as assignees of Seller) under the Receivables
Sale Agreement as the Agent may from time to time reasonably request, including, without
limitation, making claims to which it may be entitled under any
indemnity, reimbursement or similar provision contained in the Receivables Sale
Agreement.

 

(h)           Ownership. 
Seller will (and will cause each Originator to) take all necessary
action to (i) vest legal and equitable title to the Receivables, the Related
Security and the Collections purchased under the Receivables Sale Agreement
irrevocably in Seller, free and clear of any Adverse Claims other than Adverse
Claims in favor of the Agent and the Purchasers (including,
without limitation, the filing of all
financing statements or other similar instruments or documents necessary under
the UCC (or any comparable law) of all appropriate jurisdictions to perfect
Seller’s interest in such Receivables, Related Security and Collections and
such other action to perfect, protect or more fully evidence the interest of
Seller therein as the Agent may reasonably request), and (ii) establish and
maintain, in favor of the Agent, for the benefit of the 

 

15

 

Purchasers, a valid and perfected first priority
undivided percentage ownership interest (and/or a valid and perfected first
priority security interest) in all Receivables, Related Security and
Collections to the full extent contemplated herein, free and clear of any
Adverse Claims other than Adverse Claims in favor of the Agent for the benefit
of the Purchasers (including, without limitation, the filing of all
financing statements or other similar instruments or documents necessary under
the UCC (or any comparable law) of all appropriate jurisdictions to perfect the
Agent’s (for the benefit of the Purchasers) interest in such Receivables,
Related Security and Collections and such other action to perfect, protect or
more fully evidence the interest of the Agent for the benefit of the Purchasers
as the Agent may reasonably request).

 

(i)            Purchasers’ Reliance.  Seller acknowledges that the Purchasers are
entering into the transactions contemplated by this Agreement in reliance upon
Seller’s identity as a legal entity that is separate from the Servicer, each
Originator and any of their respective Affiliates.  Therefore, from and after the date of execution and delivery of
this Agreement, Seller shall take all reasonable steps, including, without
limitation, all steps that the Agent or any Purchaser may from time to time
reasonably request, to maintain Seller’s identity as a separate legal entity
and to make it manifest to third parties that Seller is an entity with assets
and liabilities distinct from those of any other Person and not just a division
of the Servicer, any Originator or any of their respective Affiliates.  Without limiting the generality of the
foregoing and in addition to the other covenants set forth herein, Seller will:

 

(A)          conduct its own business
in its own name and require that all full-time employees of Seller, if any,
identify themselves as such and not as employees of any other Person
(including, without limitation, by means of providing appropriate employees
with business or identification cards identifying such employees as Seller’s
employees);

 

(B)           compensate all
employees, consultants and agents directly, from Seller’s own funds, for
services provided to Seller by such employees, consultants and agents and, to
the extent any employee, consultant or agent of Seller is also an employee,
consultant or agent of the Servicer, any Originator or any other Person,
allocate the compensation of such employee, consultant or agent between Seller
and such other Person, as applicable, on a basis that reflects the services
rendered to Seller and such other Person, as applicable;

 

(C)           clearly identify its
offices (by signage or otherwise) as its offices and, if such office is located
in the offices of any other Person, Seller shall lease such office at a fair
market rent;

 

(D)          have a separate
telephone number, which will be answered only in its name and separate
stationery, invoices and checks in its own name;

 

(E)           conduct all
transactions with the Servicer (including, without limitation, any delegation
of its obligations hereunder as Servicer), any Originator or any other Person
strictly on an arm’s-length basis, allocate all overhead expenses (including,
without limitation, telephone and other utility charges) for items shared
between Seller and such other Person on the basis of 

 

16

 

actual use to the extent practicable and, to the extent such allocation
is not practicable, on a basis reasonably related to actual use;

 

(F)           at all times have a
Board of Directors consisting of three members, at least one member of which is
an Independent Director;

 

(G)           observe all corporate
formalities as a distinct entity, and ensure that all corporate actions
relating to (A) the selection, maintenance or replacement of the Independent
Director, (B) the dissolution or liquidation of Seller or (C) the initiation of,
participation in, acquiescence in or consent to any bankruptcy, insolvency,
reorganization or similar proceeding involving Seller, are duly authorized by
unanimous vote of its Board of Directors (including the Independent Director);

 

(H)          maintain Seller’s books
and records separate from those of any other Person and otherwise readily
identifiable as its own assets rather than assets of the Servicer, any
Originator or any Affiliate thereof;

 

(I)            prepare its financial
statements separately from those of the Servicer, any Originator or any other
Person and insure that any consolidated financial statements of any Person that
include Seller and that are filed with the Securities and Exchange Commission
or any other governmental agency have notes clearly stating that Seller is a
separate corporate entity and that its assets will be available first and
foremost to satisfy the claims of the creditors of Seller;

 

(J)            except as herein
specifically otherwise provided, maintain the funds or other assets of Seller
separate from, and not commingled with, those of the Servicer, any Originator
or any Affiliate thereof and only maintain bank accounts or other depository
accounts to which Seller alone is the account party, into which Seller alone
makes deposits and from which Seller alone (or the Agent hereunder) has the
power to make withdrawals;

 

(K)          pay all of Seller’s
operating expenses from Seller’s own assets (except for certain payments by the
Servicer or other Persons pursuant to allocation arrangements that comply with
the requirements of this Section 7.1(i));

 

(L)           operate its business
and activities such that:  it does not
engage in any business or activity of any kind, or enter into any transaction
or indenture, mortgage, instrument, agreement, contract, lease or other
undertaking, other than the transactions contemplated and authorized by this
Agreement and the Receivables Sale Agreement; and does not create, incur,
guarantee, assume or suffer to exist any indebtedness or other liabilities,
whether direct or contingent, other than (1) as a result of the endorsement of
negotiable instruments for deposit or collection or similar transactions in the
ordinary course of business, (2) the incurrence of obligations under this
Agreement, (3) the incurrence of obligations, as expressly contemplated in the
Receivables Sale Agreement, to make payment to Genlyte, as an Originator
thereunder for the purchase of Receivables from 

 

17

 

Genlyte under the Receivables Sale Agreement, and (4) the incurrence of
operating expenses in the ordinary course of business of the type otherwise
contemplated by this Agreement;

 

(M)         maintain its
organizational documents in conformity with this Agreement, such that it does
not amend, restate, supplement or otherwise modify its organizational documents
in any respect that would impair its ability to comply with the terms or
provisions of any of the Transaction Documents, including, without limitation, Section 7.1(i) of this Agreement;

 

(N)          maintain the effectiveness
of, and continue to perform under the Receivables Sale Agreement and any other
Transaction Document to which it is a party, such that it does not amend,
restate, supplement, cancel, terminate or otherwise modify the Receivables Sale
Agreement or any other Transaction Document to which it is a party, or give any
consent, waiver, directive or approval thereunder or waive any default, action,
omission or breach under the Receivables Sale Agreement or any other
Transaction Document to which it is a party, or otherwise grant any indulgence
thereunder, without (in each case) the prior written consent of the Agent;

 

(O)          maintain its corporate
separateness such that it does not merge or consolidate with or into, or
convey, transfer, lease or otherwise dispose of (whether in one transaction or
in a series of transactions, and except as otherwise contemplated herein) all
or substantially all of its assets (whether now owned or hereafter acquired)
to, or acquire all or substantially all of the assets of, any Person, nor at
any time create, have, acquire, maintain or hold any interest in any
Subsidiary.

 

(P)           maintain at all times
the Required Capital Amount (as defined in the Receivables Sale Agreement) and
refrain from making any dividend, distribution, redemption of capital stock or
payment of any subordinated indebtedness which would cause the Required Capital
Amount to cease to be so maintained; and

 

(Q)          take such other actions
as are necessary on its part to ensure that the facts and assumptions set forth
in the opinion issued by Stoll, Keenon & Park, LLP, as counsel for Seller,
in connection with the closing or initial Incremental Purchase under this
Agreement and relating to substantive consolidation issues, and in the
certificates accompanying such opinion, remain true and correct in all material
respects at all times.

 

(j)            Collections. 
Such Seller Party will cause (1) all proceeds from all Lock-Boxes to be
directly deposited by a Collection Bank into a Collection Account and (2) each
Lock-Box and Collection Account to be subject at all times to a Collection
Account Agreement that is in full force and effect.  In the event any payments relating to Receivables are remitted
directly to Seller or any Affiliate of Seller, Seller will remit (or will cause
all such payments to be remitted) directly to a Collection Bank and deposited
into a Collection Account within two (2) 

 

18

 

Business Days following receipt thereof, and, at all
times prior to such remittance, Seller will itself hold or, if applicable, will
cause such payments to be held in trust for the exclusive benefit of the Agent
and the Purchasers.  Seller will
maintain exclusive ownership, dominion and control (subject to the terms of
this Agreement) of each Lock-Box and Collection Account and shall not grant the
right to take dominion and control of any Lock-Box or Collection Account at a
future time or upon the occurrence of a future event to any Person, except to
the Agent as contemplated by this Agreement.

 

(k)           Taxes.  Such Seller Party will file all tax returns
and reports required by law to be filed by it and will promptly pay all taxes
and governmental charges at any time owing. 
Seller will pay when due any taxes payable in connection with the Receivables,
exclusive of taxes on or measured by income or gross receipts of Jupiter, the
Agent or any Financial Institution.

 

(l)            Payment to Originator and Original Seller.  With respect to any Receivable purchased by
Seller from Originator, such sale shall be effected under, and in strict
compliance with the terms of, the Receivables Sale Agreement, including, without
limitation, the terms relating to the
amount and timing of payments to be made to Originator in respect of the
purchase price for such Receivable. 
With respect to any Receivable purchased by Originator from an Original
Seller, such sale shall be effected under, and in strict compliance with the
terms of, the Receivables Sale Agreement, including, without limitation, the
terms relating to the amount and timing of payments to be made to such Original
Seller in respect of the purchase price for such Receivable.

 

(m)          Insurance.  Each Seller Party will, at all times,
maintain in effect, or cause to be maintained in effect, as such Seller Party’s
own expense, insurance with respect to losses of such Seller Party in an amount
and manner customary for companies in the same or similar industry and business
as such Seller Party.

 

Section 7.2             Negative Covenants of The Seller Parties.  Until the date on which the Aggregate
Unpaids have been indefeasibly paid in full and this Agreement terminates in
accordance with its terms, each Seller Party hereby covenants, as to itself,
that:

 

(a)           Change in Name, Corporate Structure, Offices and Records.  Such Seller Party will not change its name,
identity, corporate structure or “location” as any such term may be used in the
applicable UCC unless it shall have: 
(i) given the Agent at least forty-five (45) days’ (or such shorter period
to which Agent agrees in writing) prior written notice thereof and (ii)
delivered to the Agent all financing statements, instruments and other
documents necessary to continue and maintain the effectiveness and priority,
under the UCC of all applicable jurisdictions, of the security or ownership
interest contemplated hereunder and under the other Transaction Documents, as
otherwise reasonably requested by the Agent in connection with such change or
relocation.  In addition, no Seller
Party will change its chief executive officer or the office where its material
Records are kept unless it shall have given the Agent forty-five (45) days (or
such shorter period to which Agent agrees in writing) prior written notice
thereof.  The parties to this Agreement
acknowledge and understand that on or about the date of this Agreement, Genlyte
may change from being owned by Provider and Thomas Industries Inc. and certain
of its Affiliates to being wholly owned by Provider, and intends to change its
name to 

 

19

 

reflect such change in ownership.  Notwithstanding anything in this Agreement
to the contrary, the parties agree that such change of ownership shall not be
construed as an Amortization Event or as a violation of any provision of this
Agreement if the Agent receives 10 days prior written notice of such name
change.

 

(b)           Change in Payment Instructions to Obligors.  Except as may be required by the Agent
pursuant to Section 8.2(b), such Seller Party will not add or terminate
any bank as a Collection Bank, or make any change in the instructions to
Obligors regarding payments to be made to any Lock-Box or Collection Account,
unless the Agent shall have received, at least ten (10) days before the
proposed effective date therefor, (i) written notice of such addition,
termination or change and (ii) with respect to the addition of a Collection
Bank or a Collection Account or Lock-Box, an executed Collection Account
Agreement with respect to the new Collection Account or Lock-Box; provided, however,
that the Servicer may make changes in instructions to Obligors regarding
payments if such new instructions require such Obligor to make payments to
another existing Collection Account.

 

(c)           Modifications to Contracts and Credit and Collection
Policy.  Without the prior
written approval of the Agent (which approval will not be unreasonably
withheld), such Seller Party will not, and will not permit any Originator to,
make any change to the Credit and Collection Policy that would be reasonably
likely to adversely affect the collectibility of the Receivables or decrease
the credit quality of any newly created Receivables.  Except as provided in Section 8.2(d),
the Servicer will not, and will not permit any Originator to, extend, amend or
otherwise modify the terms of any Receivable or any Contract related thereto
other than in accordance with the Credit and Collection Policy.

 

(d)           Sales, Liens.  Seller will not sell, assign (by operation of law or otherwise)
or otherwise dispose of, or grant any option with respect to, or create or
suffer to exist any Adverse Claim upon (including, without limitation, the
filing of any financing statement) or with respect to, any Receivable, Related
Security or Collections, or upon or with respect to any Contract under which
any Receivable arises, or any Lock-Box or Collection Account, or assign any
right to receive income with respect thereto (other than, in each case, the
creation of the interests therein in favor of the Agent and the Purchasers
provided for herein), and Seller will defend the right, title and interest of
the Agent and the Purchasers in, to and under any of the foregoing property,
against all claims of third parties claiming through or under Seller or
Originator.  Seller will not (and will not
permit any Originator to) create or suffer to exist any mortgage, pledge,
security interest, encumbrance, lien, charge or other similar arrangement on
any of its inventory, the financing or lease of which gives rise to any
Receivable.

 

(e)           Net Receivables Balance.  At no time prior to the Amortization Date
shall Seller permit the Net Receivables Balance to be less than an amount equal
to the sum of (i) the Aggregate Capital plus
(ii) the Aggregate Reserves.

 

(f)            Termination Date Determination.  Seller will not designate the Termination
Date (as defined in the Receivables Sale Agreement), or send any written notice
to Originator in respect thereof, without the prior written consent of the
Agent, except with respect to the occurrence of such Termination Date arising
pursuant to Section 5.1(d) of the Receivables Sale Agreement.

 

20

 

(g)           Restricted Junior
Payments.  Seller will not make any
Restricted Junior Payment unless before and, after giving effect thereto (i) no
Amortization Event or Potential Amortization Event shall have occurred and be
continuing, (ii) in connection with any payment in respect of a dividend, such
dividend (or other asset distribution) (1) is made in compliance with all
applicable law (including Delaware General Corporate Laws) and (2) has been
approved by all necessary corporate action of the Seller and its board of
directors (or designated committee thereof).

 

ARTICLE VIII

ADMINISTRATION AND COLLECTION

 

Section 8.1             Designation of Servicer.

 

(a)           The servicing,
administration and collection of the Receivables shall be conducted by such
Person (the “Servicer”) so designated
from time to time in accordance with this Section
8.1. Genlyte is hereby designated as, and hereby agrees to perform
the duties and obligations of, the Servicer pursuant to the terms of this
Agreement, and agrees that it shall not resign its position as Servicer unless
the Agent shall have designated a replacement Servicer as provided below.  At any time following the occurrence of a
Potential Amortization Event or an Amortization Event, the Agent may designate
as Servicer any Person to succeed Genlyte as Servicer.

 

(b)           Without the prior
written consent of the Agent and the Required Financial Institutions, Genlyte
shall not be permitted to delegate any of its duties or responsibilities as
Servicer to any Person other than (i) Seller and the Originators and (ii) with
respect to certain Charged-Off Receivables, outside collection agencies in
accordance with its customary practices. 
Neither the Seller nor any Originator shall be permitted to further
delegate to any other Person any of the duties or responsibilities of the
Servicer delegated to it by Genlyte.  If
at any time the Agent shall designate as Servicer any Person other than
Genlyte, all duties and responsibilities theretofore delegated by Genlyte to
Seller or any Originator may, at the discretion of the Agent, be terminated
forthwith on notice given by the Agent to Genlyte and such other Person.

 

(c)           Notwithstanding any
delegation pursuant to the foregoing subsection (b), Genlyte shall be and
remain primarily liable to the Agent and the Purchasers for the full and prompt
performance of all duties and responsibilities of the Servicer hereunder.  During such times that Genlyte serves as
Servicer hereunder or Genlyte has delegated any of its servicing duties to a
subservicer or other delegate in accordance with Section 8.1(b), the Agent and
the Purchasers (i) shall be entitled to deal exclusively with Genlyte in
matters relating to the discharge by the Servicer of its duties and
responsibilities hereunder, and (ii) shall not be required to give notice,
demand or other communication to any Person other than Genlyte in order for
communication to the Servicer and its sub-servicer or other delegate with
respect thereto to be accomplished. 
Genlyte, at all times that it is the Servicer, shall be responsible for
providing any sub-servicer or other delegate of the Servicer with any notice
given to the Servicer under this Agreement.

 

21

 

Section 8.2             Duties of Servicer.

 

(a)           The Servicer shall take
or cause to be taken all such commercially reasonable actions as may be
necessary or advisable to collect each Receivable from time to time, all in
accordance with applicable laws, rules and regulations, with reasonable care
and diligence, and in accordance with the Credit and Collection Policy.

 

The Servicer will instruct all Obligors to pay all Collections directly
to a Lock-Box or Collection Account. 
The Servicer shall effect a Collection Account Agreement substantially
in the form of Exhibit VI with each
bank party to a Collection Account at any time.  In the case of any remittances received in any Lock-Box or
Collection Account that shall have been identified, to the satisfaction of the
Servicer, to not constitute Collections or other proceeds of the Receivables or
the Related Security, the Servicer shall promptly remit such items to the
Person identified to it as being the owner of such remittances.  From and after the date the Agent delivers
to any Collection Bank a Collection Notice pursuant to Section 8.3, the Agent may request that the
Servicer, and the Servicer thereupon promptly shall instruct all Obligors with
respect to the Receivables, to remit all payments thereon to a new depositary
account specified by the Agent and, at all times thereafter, Seller and the
Servicer shall not deposit or otherwise credit, and shall not permit any other
Person to deposit or otherwise credit to such new depositary account any cash
or payment item other than Collections.

 

(b)           The Servicer shall
administer the Collections in accordance with the procedures described herein
and in Article II.  The Servicer shall set aside and hold in
trust for the account of Seller and the Purchasers their respective shares of
the Collections in accordance with Article II.  The Servicer shall, upon the request of the
Agent, segregate, in a manner acceptable to the Agent, all cash, checks and
other instruments received by it from time to time constituting Collections
from the general funds of the Servicer or Seller prior to the remittance
thereof in accordance with Article II.  If the Servicer shall be required to
segregate Collections pursuant to the preceding sentence, the Servicer shall
segregate and deposit with a bank designated by the Agent such allocable share
of Collections of Receivables set aside for the Purchasers on the first
Business Day following receipt by the Servicer of such Collections, duly
endorsed or with duly executed instruments of transfer.

 

(c)           The Servicer may, in
accordance with the Credit and Collection Policy, extend the maturity of any
Receivable or adjust the Outstanding Balance of any Receivable as the Servicer
determines to be appropriate to maximize Collections thereof; provided, however,
that such extension or adjustment shall not alter the status of such Receivable
as a Delinquent Receivable or Charged-Off Receivable or limit the rights of the
Agent or the Purchasers under this Agreement. 
Notwithstanding anything to the contrary contained herein, if an
Amortization Event or Potential Amortization Event has occurred, the Agent
shall have the absolute and unlimited right to direct the Servicer to commence
or settle any legal action with respect to any Receivable or to foreclose upon
or repossess any Related Security.

 

(d)           The Servicer shall hold
in trust for Seller and the Purchasers all Records that (i) evidence or relate
to the Receivables, the related Contracts and Related Security or (ii) are
otherwise necessary or desirable to collect the Receivables and shall, as soon
as practicable upon demand of the Agent, deliver or make available to the Agent
all such Records, at a place 

 

22

 

selected by the Agent.  The Servicer shall, as soon as practicable following receipt
thereof turn over to Seller any cash collections or other cash proceeds
received with respect to Indebtedness not constituting Receivables.  The Servicer shall, from time to time at the
request of any Purchaser, furnish to the Purchasers (promptly after any such
request) a calculation of the amounts set aside for the Purchasers pursuant to Article II.

 

(e)           Any payment by an
Obligor in respect of any indebtedness owed by it to Originator or Seller
shall, except as otherwise specified by such Obligor or otherwise required by
contract or law and unless otherwise instructed by the Agent, be applied as a
Collection of any Receivable of such Obligor (starting with the oldest such
Receivable) to the extent of any amounts then due and payable thereunder before
being applied to any other receivable or other obligation of such Obligor.

 

Section 8.3             Collection Notices.  At any time following a Potential Amortization Event or an
Amortization Event, the Agent is authorized at any time to date and to deliver
to the Collection Banks the Collection Notices.  Seller hereby transfers to the Agent for the benefit of the
Purchasers, effective when the Agent delivers such notice, the exclusive
ownership and control of each Lock-Box and the Collection Accounts.  In case any authorized signatory of Seller
whose signature appears on a Collection Account Agreement shall cease to have
such authority before the delivery of such notice, such Collection Notice shall
nevertheless be valid as if such authority had remained in force.  Seller hereby authorizes the Agent, and
agrees that the Agent shall be entitled to (i) endorse Seller’s name on checks
and other instruments representing Collections, (ii) enforce the Receivables,
the related Contracts and the Related Security and (iii) take such action as
shall be necessary or desirable to cause all cash, checks and other instruments
constituting Collections of Receivables to come into the possession of the
Agent rather than Seller.

 

Section 8.4             Responsibilities of Seller.  Anything herein to the contrary
notwithstanding, the exercise by the Agent and the Purchasers of their rights
hereunder shall not release the Servicer, any Originator or Seller from any of
their duties or obligations with respect to any Receivables or under the
related Contracts.  The Purchasers shall
have no obligation or liability with respect to any Receivables or related
Contracts, nor shall any of them be obligated to perform the obligations of
Seller.

 

Section 8.5             Reports. 
The Servicer shall prepare and forward to the Agent (i) on the fifteenth
(15th)  day of each month
(or, if such day is not a Business Day, the next succeeding Business Day) and
at such times as the Agent shall request, a Monthly Report and (ii) at such
times as the Agent shall request, a listing by Obligor of all Receivables
together with an aging of such Receivables.

 

Section 8.6             Servicing Fees.  In consideration of Genlyte’s agreement to act as Servicer
hereunder, the Purchasers hereby agree that, so long as Genlyte shall continue
to perform as Servicer hereunder, Seller shall pay over to Genlyte a fee (the “Servicing Fee”) on the first day of each
Fiscal Month, in arrears for the immediately preceding Fiscal Month, equal to
1.0% per  annum of the average Outstanding Balance of all
Receivables during such period, as compensation for its servicing activities.

 

23

 

ARTICLE IX

AMORTIZATION EVENTS

 

Section 9.1             Amortization Events.  The occurrence of any one or more of the
following events shall constitute an Amortization Event:

 

(a)           Any Seller Party shall:

 

(i)            default in the payment
of Capital when due, or

 

(ii)           fail to make any
payment or deposit required hereunder in respect of fees under the Fee Letter,
Jupiter Cost and/or Yield when due, and such failure shall continue for two (2)
consecutive Business Days,

 

(iii)          fail to make any other
payment when due hereunder or under any Transaction Document, and such failure
shall continue for three (3) consecutive Business Days,

 

(iv)          fail to deliver to the
Agent, pursuant to Section 8.5, any Monthly Report when due, and such failure
shall continue for three (3) consecutive Business Days,

 

(v)           fail to perform or
observe any term, covenant or agreement described in Section 7.2 hereof,
and such failure shall continue for five (5) consecutive Business Days, or

 

(vi)          fail to perform or
observe any other term, covenant or agreement hereunder (other than as referred
to in clauses (i) through (v) of this paragraph (a) and paragraph
9.1(e)) and such failure shall continue for ten (10) consecutive Business
Days.

 

(b)           Any representation,
warranty, certification or statement made by any Seller Party in this
Agreement, any other Transaction Document or in any other document delivered
pursuant hereto or thereto shall prove to have been incorrect when made or
deemed made.

 

(c)           (i) Failure of Seller
to pay any Indebtedness when due, or (ii) the occurrence of a Genlyte Cross
Default.

 

(d)           (i)  The Seller or an Originator 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 (ii) any proceeding shall be instituted by or against
the Seller or an Originator seeking to adjudicate it 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 any substantial part of its property, or (iii) the
Seller or an Originator shall take any corporate action to authorize any of the
actions set forth in clauses (i) or (ii) above, or (iv) any other
Genlyte Bankruptcy Event shall occur.

 

24

 

(e)           Seller shall fail to
comply with the terms of Section 2.6 hereof.

 

(f)            As at the end of any
Fiscal Month (A) the Default Trigger Ratio shall exceed 4.0%, (B) the
Delinquency Trigger Ratio shall exceed 9.0%, or (C) the Dilution Trigger Ratio
shall exceed 8.25%.

 

(g)           A Change of Control
shall occur.

 

(h)           (i)  One or more final judgments for the payment
of money shall be entered against Seller, or (ii) a Genlyte Judgment Default
shall occur.

 

(i)            The “Termination Date”
under and as defined in the Receivables Sale Agreement shall occur under the
Receivables Sale Agreement or Originator shall for any reason cease to
transfer, or cease to have the legal capacity to transfer, or otherwise be
incapable of transferring Receivables to Seller under the Receivables Sale
Agreement.

 

(j)            This Agreement shall
terminate in whole or in part (except in accordance with its terms), or shall
cease to be effective or to be the legally valid, binding and enforceable
obligation of Seller or Servicer, or Seller or Servicer shall directly or
indirectly contest in any manner such effectiveness, validity, binding nature
or enforceability, or the Agent for the benefit of the Purchasers shall cease
to have a valid and perfected first priority security interest in the
Receivables, the Related Security and the Collections with respect thereto and
the Collection Accounts.

 

(k)           Provider shall fail to
perform or observe any term, covenant or agreement required to be performed by
it under the Performance Undertaking, or the Performance Undertaking shall
cease to be effective or to be the legally valid, binding and enforceable
obligation of Provider, or Provider shall directly or indirectly contest in any
manner such effectiveness, validity, binding nature or enforceability.

 

(l)            The ratio of (a) the
amount of Consolidated Total Debt as of the end of any Testing Period
(commencing with the Testing Period ending September 30, 2004) to (b)
Consolidated EBITDA for such Testing Period exceeds 3.25 to 1.00.

 

(m)          The Consolidated
Interest Coverage Ratio as of the end of any Testing Period (commencing with
the Testing Period ending September 30, 2004) is less than 3.00 to 1.00.

 

Section 9.2             Remedies. 
Upon the occurrence and during the continuation of an Amortization
Event, the Agent may, or upon the direction of the Required Financial
Institutions shall, take any of the following actions:  (i) 
replace the Person then acting as Servicer, (ii) declare the
Amortization Date to have occurred, whereupon the Amortization Date shall
forthwith occur, without demand, protest or further notice of any kind, all of
which are hereby expressly waived by each Seller Party; provided, however,
that upon the occurrence of an Amortization Event described in Section 9.1(d)(ii), or of an actual or deemed
entry of an order for relief with respect to any Seller Party under the Federal
Bankruptcy Code, the Amortization Date shall automatically occur, without
demand, protest or any notice of any kind, all of which are hereby expressly
waived by each Seller Party, (iii) to the fullest extent permitted by 

 

25

 

applicable law, declare that the Default Fee shall
accrue with respect to any of the Aggregate Unpaids outstanding at such time,
(iv) deliver the Collection Notices to the Collection Banks, and (v) notify
Obligors of the Purchasers’ interest in the Receivables.  The aforementioned rights and remedies shall
be without limitation, and shall be in addition to all other rights and
remedies of the Agent and the Purchasers otherwise available under any other
provision of this Agreement, by operation of law, at equity or otherwise, all of
which are hereby expressly preserved, including, without limitation, all rights
and remedies provided under the UCC, all of which rights shall be cumulative.

 

ARTICLE X

INDEMNIFICATION

 

Section 10.1           Indemnities by The Seller Parties.  Without limiting any other rights that the
Agent or any Purchaser may have hereunder or under applicable law, (A) Seller
hereby agrees to indemnify (and pay upon demand to) the Agent, each Purchaser,
each Funding Source and their respective assigns, officers, directors, agents
and employees (each an “Indemnified Party”)
from and against any and all damages, losses, claims, taxes, liabilities,
costs, expenses and for all other amounts payable, including reasonable
attorneys’ fees and disbursements (all of the foregoing being collectively
referred to as “Indemnified Amounts”)
awarded against or incurred by any of them arising out of or as a result of
this Agreement or the acquisition, either directly or indirectly, by a
Purchaser of an interest in the Receivables, and (B) the Servicer hereby agrees
to indemnify (and pay upon demand to) each Indemnified Party for Indemnified
Amounts awarded against or incurred by any of them arising out of the
Servicer’s activities as Servicer hereunder excluding, however, in all of the
foregoing instances under the preceding clauses (A) and (B):

 

(i)            Indemnified Amounts to
the extent such Indemnified Amounts resulted from gross negligence or willful
misconduct on the part of the Indemnified Party seeking indemnification;

 

(ii)           Indemnified Amounts to
the extent the same includes losses in respect of Receivables that are
uncollectible on account of the insolvency, bankruptcy or lack of
creditworthiness of the related Obligor; or

 

(iii)          taxes imposed by the
jurisdiction in which such Indemnified Party’s principal executive office is
located, on or measured by the overall net income of such Indemnified Party to
the extent that the computation of such taxes is consistent with the
characterization for income tax purposes of the acquisition by the Purchasers
of Purchaser Interests as a loan or loans by the Purchasers to Seller secured
by the Receivables, the Related Security, the Collection Accounts and the
Collections;

 

provided,
however, that nothing contained in this
sentence shall limit the liability of any Seller Party or limit the recourse of
the Purchasers to any Seller Party for amounts otherwise specifically provided
to be paid by such Seller Party under the terms of this Agreement.  Without limiting the generality of the
foregoing indemnification, Seller shall indemnify each Indemnified Party for
Indemnified Amounts (including, without limitation, losses in respect of
uncollectible

 

26

 

receivables, regardless of whether
reimbursement therefor would constitute recourse to Seller or the Servicer)
relating to or resulting from:

 

(i)            any representation or
warranty made by any Seller Party (or any officers of any such Person) under or
in connection with this Agreement, any other Transaction Document or any other
information or report delivered by any such Person pursuant hereto or thereto,
which shall have been false or incorrect when made or deemed made;

 

(ii)           the failure by any
Seller Party to comply with any applicable law, rule or regulation with respect
to any Receivable or Contract related thereto, or the nonconformity of any
Receivable or Contract included therein with any such applicable law, rule or
regulation or any failure of such Seller Party to keep or perform any of its
obligations, express or implied, with respect to any Contract;

 

(iii)          any failure of any
Seller Party to perform its duties, covenants or other obligations in
accordance with the provisions of this Agreement or any other Transaction
Document;

 

(iv)          any products liability,
personal injury or damage suit, or other similar claim arising out of or in
connection with merchandise, insurance or services that are the subject of any
Contract or any Receivable;

 

(v)           any dispute, claim,
offset or defense (other than discharge in bankruptcy of the Obligor) of the
Obligor to the payment of any Receivable (including, without limitation, a
defense based on such Receivable or the related Contract not being a legal,
valid and binding obligation of such Obligor enforceable against it in
accordance with its terms), or any other claim resulting from the sale of the
merchandise or service related to such Receivable or the furnishing or failure
to furnish such merchandise or services;

 

(vi)          the commingling of
Collections of Receivables at any time with other funds;

 

(vii)         any investigation,
litigation or proceeding related to or arising from this Agreement or any other
Transaction Document, the transactions contemplated hereby, the use of the
proceeds of an Incremental Purchase or a Reinvestment, the ownership of the
Purchaser Interests or any other investigation, litigation or proceeding
relating to a Seller Party in which any Indemnified Party becomes involved as a
result of any of the transactions contemplated hereby;

 

(viii)        any inability to litigate
any claim against any Obligor in respect of any Receivable as a result of such
Obligor being immune from civil and commercial law and suit on the grounds of
sovereignty or otherwise from any legal action, suit or proceeding;

 

(ix)           any Amortization Event
described in Section 9.1(d);

 

27

 

(x)            any failure of Seller
to acquire and maintain legal and equitable title to, and ownership of any
Receivable and the Related Security and Collections with respect thereto from
Originator, free and clear of any Adverse Claim (other than as created
hereunder); or any failure of Seller to give reasonably equivalent value to
Originator under the Receivables Sale Agreement in consideration of the
transfer by Originator of any Receivable, or any attempt by any Person to void
such transfer under statutory provisions or common law or equitable action;

 

(xi)           any failure to vest and
maintain vested in the Agent for the benefit of the Purchasers, or to transfer
to the Agent for the benefit of the Purchasers, legal and equitable title to,
and ownership of, a first priority perfected undivided percentage ownership
interest (to the extent of the Purchaser Interests contemplated hereunder) or
security interest in the Receivables, the Related Security and the Collections,
free and clear of any Adverse Claim (except as created by the Transaction
Documents);

 

(xii)          the failure to have
filed, or any delay in filing, financing statements or other similar
instruments or documents under the UCC of any applicable jurisdiction or other
applicable laws with respect to any Receivable, the Related Security and
Collections with respect thereto, and the proceeds of any thereof, whether at
the time of any Incremental Purchase or Reinvestment or at any subsequent time;

 

(xiii)         any action or omission by
any Seller Party which reduces or impairs the rights of the Agent or the
Purchasers with respect to any Receivable or the value of any such Receivable;

 

(xiv)        any attempt by any Person
to void any Incremental Purchase or Reinvestment hereunder under statutory
provisions or common law or equitable action; and

 

(xv)         the failure of any
Receivable included in the calculation of the Net Receivables Balance as an
Eligible Receivable to be an Eligible Receivable at the time so included.

 

Section 10.2           Increased Cost and Reduced Return.  If after the date hereof, any Funding Source
shall be charged any fee, expense or increased cost on account of the adoption
of any applicable law, rule or regulation (including any applicable law, rule
or regulation regarding capital adequacy), any accounting principles or any
change in any of the foregoing, or any change in the interpretation or
administration thereof by the Financial Accounting Standards Board (“FASB”),
any governmental authority, any central bank or any comparable agency charged
with the interpretation or administration thereof, or compliance with any
request or directive (whether or not having the force of law) of any such
authority or agency (a “Regulatory Change”):  (i) that subjects any Funding Source to any charge or withholding
on or with respect to any Funding Agreement or a Funding Source’s obligations
under a Funding Agreement, or on or with respect to the Receivables, or changes
the basis of taxation of payments to any Funding Source of any amounts payable
under any Funding Agreement (except for changes in the rate of tax on the
overall net income of a Funding Source or taxes excluded by Section 10.1)
or (ii) that imposes, modifies or deems applicable any reserve, assessment,
insurance charge, special deposit 

 

28

 

or similar requirement against assets of, deposits
with or for the account of a Funding Source, or credit extended by a Funding
Source pursuant to a Funding Agreement or (iii) that imposes any other
condition the result of which is to increase the cost to a Funding Source of
performing its obligations under a Funding Agreement, or to reduce the rate of
return on a Funding Source’s capital as a consequence of its obligations under
a Funding Agreement, or to reduce the amount of any sum received or receivable
by a Funding Source under a Funding Agreement or to require any payment
calculated by reference to the amount of interests or loans held or interest
received by it, then, upon demand by the Agent, Seller shall pay to the Agent,
for the benefit of the relevant Funding Source, such amounts charged to such
Funding Source or such amounts to otherwise compensate such Funding Source for
such increased cost or such reduction. 
For the avoidance of doubt, if the issuance of FASB Interpretation No.
46, or any other change in accounting standards or the issuance of any other
pronouncement, release or interpretation, causes or requires the consolidation
of all or a portion of the assets and liabilities of Jupiter or Seller with the
assets and liabilities of the Agent, any Financial Institution or any other
Funding Source, such event shall constitute a circumstance on which such
Funding Source may base a claim for reimbursement under this Section.

 

Section 10.3           Other Costs and Expenses.  Seller shall pay to the Agent and Jupiter on
demand all costs and out-of-pocket expenses in connection with the preparation,
execution, delivery and administration of this Agreement, the transactions
contemplated hereby and the other documents to be delivered hereunder,
including without limitation, the cost of Jupiter’s auditors auditing the
books, records and procedures of Seller, reasonable fees and out-of-pocket
expenses of legal counsel for Jupiter and the Agent with respect thereto and
with respect to advising Jupiter and the Agent as to their respective rights
and remedies under this Agreement. 
Seller shall pay to the Agent on demand any and all costs and expenses
of the Agent and the Purchasers, if any, including reasonable counsel fees and
expenses in connection with the enforcement of this Agreement and the other
documents delivered hereunder and in connection with any restructuring or
workout of this Agreement or such documents, or the administration of this
Agreement following an Amortization Event.

 

ARTICLE XI

THE AGENT

 

Section 11.1           Authorization and Action.  Each Purchaser hereby designates and
appoints Bank One to act as its agent hereunder and under each other
Transaction Document, and authorizes the Agent to take such actions as agent on
its behalf and to exercise such powers as are delegated to the Agent by the
terms of this Agreement and the other Transaction Documents together with such
powers as are reasonably incidental thereto. 
The Agent shall not have any duties or responsibilities, except those
expressly set forth herein or in any other Transaction Document, or any
fiduciary relationship with any Purchaser, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities on the part of the Agent
shall be read into this Agreement or any other Transaction Document or
otherwise exist for the Agent.  In
performing its functions and duties hereunder and under the other Transaction
Documents, the Agent shall act solely as agent for the Purchasers and does not
assume nor shall be deemed to have assumed any obligation or relationship of
trust or agency with or for any Seller Party or any of such Seller Party’s
successors or assigns.  The Agent shall
not be required to take any action that exposes the Agent to personal liability
or that is contrary to this Agreement, any other 

 

29

 

Transaction Document or applicable law.  The appointment and authority of the Agent
hereunder shall terminate upon the indefeasible payment in full of all
Aggregate Unpaids.  Each Purchaser
hereby authorizes the Agent to execute each of the Transaction Documents
(including any amendments or waivers thereto) on behalf of such Purchaser (the
terms of which shall be binding on such Purchaser).

 

Section 11.2           Delegation of Duties.  The Agent may execute any of its duties
under this Agreement and each other Transaction Document by or through agents
or attorneys-in-fact and shall be entitled to advice of counsel concerning all
matters pertaining to such duties.  The
Agent shall not be responsible for the negligence or misconduct of any agents
or attorneys-in-fact selected by it with reasonable care.

 

Section 11.3           Exculpatory Provisions.  Neither the Agent nor any of its directors,
officers, agents or employees shall be (i) liable for any action lawfully taken
or omitted to be taken by it or them under or in connection with this Agreement
or any other Transaction Document (except for its, their or such Person’s own
gross negligence or willful misconduct), or (ii) responsible in any manner to
any of the Purchasers for any recitals, statements, representations or
warranties made by any Seller Party contained in this Agreement, any other Transaction
Document or any certificate, report, statement or other document referred to or
provided for in, or received under or in connection with, this Agreement, or
any other Transaction Document or for the value, validity, effectiveness,
genuineness, enforceability or sufficiency of this Agreement, or any other
Transaction Document or any other document furnished in connection herewith or
therewith, or for any failure of any Seller Party to perform its obligations
hereunder or thereunder, or for the satisfaction of any condition specified in Article VI, or for the perfection, priority,
condition, value or sufficiency of any collateral pledged in connection
herewith.  The Agent shall not be under
any obligation to any Purchaser to ascertain or to inquire as to the observance
or performance of any of the agreements or covenants contained in, or
conditions of, this Agreement or any other Transaction Document, or to inspect
the properties, books or records of the Seller Parties.  The Agent shall not be deemed to have
knowledge of any Amortization Event or Potential Amortization Event unless the
Agent has received notice from Seller or a Purchaser.

 

Section 11.4           Reliance by Agent.  The Agent shall in all cases be entitled to rely, and shall be
fully protected in relying, upon any document or conversation believed by it to
be genuine and correct and to have been signed, sent or made by the proper
Person or Persons and upon advice and statements of legal counsel (including,
without limitation, counsel to Seller), independent accountants and other
experts selected by the Agent.  The
Agent shall in all cases be fully justified in failing or refusing to take any
action under this Agreement or any other Transaction Document unless it shall
first receive such advice or concurrence of Jupiter or the Required Financial
Institutions or all of the Purchasers, as applicable, as it deems appropriate
and it shall first be indemnified to its satisfaction by the Purchasers, provided that unless and until the Agent
shall have received such advice, the Agent may take or refrain from taking any
action, as the Agent shall deem advisable and in the best interests of the
Purchasers.  The Agent shall in all
cases be fully protected in acting, or in refraining from acting, in accordance
with a request of Jupiter or the Required Financial Institutions or all of the
Purchasers, as applicable, and such request and any action taken or failure to
act pursuant thereto shall be binding upon all the Purchasers.

 

30

 

Section 11.5           Non-Reliance on Agent and Other Purchasers.  Each Purchaser expressly acknowledges that
neither the Agent, nor any of its officers, directors, employees, agents,
attorneys-in-fact or affiliates has made any representations or warranties to
it and that no act by the Agent hereafter taken, including, without limitation,
any review of the affairs of any Seller Party, shall be deemed to constitute
any representation or warranty by the Agent. 
Each Purchaser represents and warrants to the Agent that it has and
will, independently and without reliance upon the Agent or any other Purchaser
and based on such documents and information as it has deemed appropriate, made
its own appraisal of and investigation into the business, operations, property,
prospects, financial and other conditions and creditworthiness of Seller and
made its own decision to enter into this Agreement, the other Transaction
Documents and all other documents related hereto or thereto.

 

Section 11.6           Reimbursement and Indemnification.  The Financial Institutions agree to
reimburse and indemnify the Agent and its officers, directors, employees,
representatives and agents ratably according to their Pro Rata Shares, to the
extent not paid or reimbursed by the Seller Parties (i) for any amounts for
which the Agent, acting in its capacity as Agent, is entitled to reimbursement
by the Seller Parties hereunder and (ii) for any other expenses incurred by the
Agent, in its capacity as Agent and acting on behalf of the Purchasers, in connection
with the administration and enforcement of this Agreement and the other
Transaction Documents.

 

Section 11.7           Agent in its Individual Capacity.  The Agent and its Affiliates may make loans
to, accept deposits from and generally engage in any kind of business with
Seller or any Affiliate of Seller as though the Agent were not the Agent
hereunder.  With respect to the
acquisition of Purchaser Interests pursuant to this Agreement, the Agent shall
have the same rights and powers under this Agreement in its individual capacity
as any Purchaser and may exercise the same as though it were not the Agent, and
the terms “Financial Institution,” “Purchaser,” “Financial
Institutions” and “Purchasers”
shall include the Agent in its individual capacity.

 

Section 11.8           Successor Agent.  The Agent may, upon five days’ notice to Seller and the
Purchasers, and the Agent will, upon the direction of all of the Purchasers
(other than the Agent, in its individual capacity) resign as Agent.  If the Agent shall resign, then the Required
Financial Institutions during such five-day period shall appoint from among the
Purchasers a successor agent.  If for
any reason no successor Agent is appointed by the Required Financial
Institutions during such five-day period, then effective upon the termination
of such five day period, the Purchasers shall perform all of the duties of the
Agent hereunder and under the other Transaction Documents and Seller and the
Servicer (as applicable) shall make all payments in respect of the Aggregate Unpaids
directly to the applicable Purchasers and for all purposes shall deal directly
with the Purchasers.  After the
effectiveness of any retiring Agent’s resignation hereunder as Agent, the
retiring Agent shall be discharged from its duties and obligations hereunder
and under the other Transaction Documents and the provisions of this Article XI and Article
X shall continue in effect for its benefit with respect to any
actions taken or omitted to be taken by it while it was Agent under this
Agreement and under the other Transaction Documents.

 

31

 

ARTICLE XII

ASSIGNMENTS; PARTICIPATIONS

 

Section 12.1           Assignments.

 

(a)           Seller and each
Financial Institution hereby agree and consent to the complete or partial assignment
by Jupiter of all or any portion of its rights under, interest in, title to and
obligations under this Agreement to the Financial Institutions, to any Funding
Source or to any other Person, and upon such assignment, Jupiter shall be
released from its obligations so assigned. 
Further, Seller and each Financial Institution hereby agree that any
assignee of Jupiter of this Agreement or all or any of the Purchaser Interests
of Jupiter shall have all of the rights and benefits under this Agreement as if
the term “Jupiter” explicitly referred
to such party, and no such assignment shall in any way impair the rights and
benefits of Jupiter hereunder.  Neither
Seller nor the Servicer shall have the right to assign its rights or obligations
under this Agreement.

 

(b)           Any Financial
Institution may at any time and from time to time assign to one or more Persons
(“Purchasing Financial Institutions”)
all or any part of its rights and obligations under this Agreement pursuant to
an assignment agreement, substantially in the form set forth in Exhibit VII hereto (the “Assignment Agreement”) executed by such
Purchasing Financial Institution and such selling Financial Institution.  The consent of Jupiter and (so long as no
Amortization Event or Potential Amortization Event has occurred) the Seller
shall be required prior to the effectiveness of any such assignment.  Each assignee of a Financial Institution
must (i) have a short-term debt rating of A-1 or better by Standard &
Poor’s Ratings Group and P-1 by Moody’s Investor Service, Inc. and (ii) agree
to deliver to the Agent, promptly following any request therefor by the Agent
or Jupiter, an enforceability opinion in form and substance satisfactory to the
Agent and Jupiter.  Upon delivery of the
executed Assignment Agreement to the Agent, such selling Financial Institution
shall be released from its obligations hereunder to the extent of such
assignment.  Thereafter the Purchasing
Financial Institution shall for all purposes be a Financial Institution party
to this Agreement and shall have all the rights and obligations of a Financial
Institution under this Agreement to the same extent as if it were an original
party hereto and no further consent or action by Seller, the Purchasers or the
Agent shall be required.

 

(c)           Each of the Financial
Institutions agrees that in the event that it shall cease to have a short-term
debt rating of A-1 or better by Standard & Poor’s Ratings Group and P-1 by
Moody’s Investor Service, Inc. (an “Affected
Financial Institution”), such Affected Financial Institution shall
be obliged, at the request of Jupiter or the Agent, to assign all of its rights
and obligations hereunder to (x) another Financial Institution or (y) another
funding entity nominated by the Agent and acceptable to Jupiter, and willing to
participate in this Agreement through the Scheduled Commitment Termination Date
in the place of such Affected Financial Institution; provided
that the Affected Financial Institution receives payment in full, pursuant to
an Assignment Agreement, of an amount equal to such Financial Institution’s Pro
Rata Share of the Aggregate Capital and Yield owing to the Financial
Institutions and all accrued but unpaid fees and other costs and expenses
payable in respect of its Pro Rata Share of the Purchaser Interests of the
Financial Institutions.

 

32

 

Section 12.2           Participations.  Any Financial Institution may, in the ordinary course of its
business at any time sell to one or more Persons (each a “Participant”) participating interests in its
Pro Rata Share of the Purchaser Interests of the Financial Institutions, its
obligation to pay Jupiter its Acquisition Amounts or any other interest of such
Financial Institution hereunder. 
Notwithstanding any such sale by a Financial Institution of a
participating interest to a Participant, such Financial Institution’s rights
and obligations under this Agreement shall remain unchanged, such Financial
Institution shall remain solely responsible for the performance of its obligations
hereunder, and Seller, Jupiter and the Agent shall continue to deal solely and
directly with such Financial Institution in connection with such Financial
Institution’s rights and obligations under this Agreement.  Each Financial Institution agrees that any
agreement between such Financial Institution and any such Participant in
respect of such participating interest shall not restrict such Financial
Institution’s right to agree to any amendment, supplement, waiver or
modification to this Agreement, except for any amendment, supplement, waiver or
modification described in Section 13.1(b)(i).

 

ARTICLE XIII

MISCELLANEOUS

 

Section 13.1           Waivers and Amendments.

 

(a)           No failure or delay on
the part of the Agent or any Purchaser in exercising any power, right or remedy
under this Agreement shall operate as a waiver thereof, nor shall any single or
partial exercise of any such power, right or remedy preclude any other further
exercise thereof or the exercise of any other power, right or remedy.  The rights and remedies herein provided
shall be cumulative and nonexclusive of any rights or remedies provided by
law.  Any waiver of this Agreement shall
be effective only in the specific instance and for the specific purpose for
which given.

 

(b)           No provision of this
Agreement may be amended, supplemented, modified or waived except in writing in
accordance with the provisions of this Section
14.1(b).  Jupiter, Seller and
the Agent, at the direction of the Required Financial Institutions, may enter
into written modifications or waivers of any provisions of this Agreement, provided, however,
that no such modification or waiver shall:

 

(i)            without the consent of
each affected Purchaser, (A) extend the Scheduled Commitment Termination Date
or the date of any payment or deposit of Collections by Seller or the Servicer,
(B) reduce the rate or extend the time of payment of Yield or any Jupiter Costs
(or any component of Yield or Jupiter Costs), (C) reduce any fee payable to the
Agent for the benefit of the Purchasers, (D) except pursuant to Article XII hereof, change the amount of the
Capital of any Purchaser, any Financial Institution’s Pro Rata Share or any
Financial Institution’s Commitment, (E) amend, modify or waive any provision of
the definition of Required Financial Institutions or this Section 13.1(b), (F) consent to or permit the
assignment or transfer by Seller of any of its rights and obligations under
this Agreement, (G) change the definition of “Eligible
Receivable,” “Loss Reserve,”
or “Loss Percentage,” or (H) amend or
modify any defined term (or any defined term used directly or indirectly in
such defined term) used in clauses (A) through 

 

33

 

(G) above in a manner that would circumvent the intention of the restrictions
set forth in such clauses; or

 

(ii)           without the written
consent of the then Agent, amend, modify or waive any provision of this
Agreement if the effect thereof is to affect the rights or duties of such
Agent.

 

Notwithstanding the foregoing, (i) without
the consent of the Financial Institutions, but with the consent of Seller, the
Agent may amend this Agreement solely to add additional Persons as Financial
Institutions hereunder and (ii) the Agent, the Required Financial Institutions
and Jupiter may enter into amendments to modify any of the terms or provisions
of Article XI, Article XII, Section
13.13 or any other provision of this Agreement without the consent
of Seller, provided that such amendment has no negative impact upon
Seller.  Any modification or waiver made
in accordance with this Section 13.1
shall apply to each of the Purchasers equally and shall be binding upon Seller,
the Purchasers and the Agent.

 

Section 13.2           Notices. 
Except as provided in this Section 13.2,
all communications and notices provided for hereunder shall be in writing
(including bank wire, telecopy or electronic facsimile transmission or similar
writing) and shall be given to the other parties hereto at their respective
addresses or telecopy numbers set forth on the signature pages hereof or at
such other address or telecopy number as such Person may hereafter specify for
the purpose of notice to each of the other parties hereto.  Each such notice or other communication
shall be effective (i) if given by telecopy, upon the receipt thereof, (ii) if
given by mail, three (3) Business Days after the time such communication is
deposited in the mail with first class postage prepaid or (iii) if given
by any other means, when received at the address specified in this Section 14.2.  Seller hereby authorizes the Agent to effect purchases and
Tranche Period and Discount Rate selections based on telephonic notices made by
any Person whom the Agent in good faith believes to be acting on behalf of
Seller.  Seller agrees to deliver promptly
to the Agent a written confirmation of each telephonic notice signed by an
authorized officer of Seller; provided,
however, the absence of such
confirmation shall not affect the validity of such notice.  If the written confirmation differs from the
action taken by the Agent, the records of the Agent shall govern absent
manifest error.

 

Section 13.3           Ratable Payments.  If any Purchaser, whether by setoff or otherwise, has payment
made to it with respect to any portion of the Aggregate Unpaids owing to such
Purchaser (other than payments received pursuant to Section
10.2 or 10.3) in a greater
proportion than that received by any other Purchaser entitled to receive a
ratable share of such Aggregate Unpaids, such Purchaser agrees, promptly upon
demand, to purchase for cash without recourse or warranty a portion of such
Aggregate Unpaids held by the other Purchasers so that after such purchase each
Purchaser will hold its ratable proportion of such Aggregate Unpaids; provided
that if all or any portion of such excess amount is thereafter recovered from
such Purchaser, such purchase shall be rescinded and the purchase price
restored to the extent of such recovery, but without interest.

 

34

 

Section 13.4           Protection of Ownership Interests of the Purchasers.

 

(a)           Seller agrees that from
time to time, at its expense, it will promptly execute and deliver all
instruments and documents, and take all actions, that may be necessary or
desirable, or that the Agent may request, to perfect, protect or more fully
evidence the Purchaser Interests, or to enable the Agent or the Purchasers to
exercise and enforce their rights and remedies hereunder.  At any time, the Agent may, or the Agent may
direct Seller or the Servicer to, notify the Obligors of Receivables, at
Seller’s expense, of the ownership or security interests of the Purchasers
under this Agreement and may also direct that payments of all amounts due or
that become due under any or all Receivables be made directly to the Agent or
its designee.  Seller or the Servicer
(as applicable) shall, at any Purchaser’s request, withhold the identity of
such Purchaser in any such notification.

 

(b)           If any Seller Party
fails to perform any of its obligations hereunder, the Agent or any Purchaser
may (but shall not be required to) perform, or cause performance of, such
obligations, and the Agent’s or such Purchaser’s costs and expenses incurred in
connection therewith shall be payable by Seller as provided in Section 10.3.  Each Seller Party irrevocably authorizes the Agent at any time
and from time to time in the sole discretion of the Agent, and appoints the
Agent as its attorney-in-fact, to act on behalf of such Seller Party (i) to
execute on behalf of Seller as debtor and to file financing statements
necessary or desirable in the Agent’s sole discretion to perfect and to
maintain the perfection and priority of the interest of the Purchasers in the
Receivables and (ii) to file a carbon, photographic or other reproduction of
this Agreement or any financing statement with respect to the Receivables as a
financing statement in such offices as the Agent in its sole discretion deems
necessary or desirable to perfect and to maintain the perfection and priority
of the interests of the Purchasers in the Receivables.  This appointment is coupled with an interest
and is irrevocable.

 

Section 13.5           Confidentiality.

 

(a)           Each Seller Party and
each Purchaser shall maintain and shall cause each of its employees and
officers to maintain the confidentiality of the Fee Letter and any other
confidential or proprietary information with respect to the Agent and Jupiter
and their respective businesses obtained by it or them in connection with the
structuring, negotiating and execution of the transactions contemplated herein,
except that such Seller Party and such Purchaser and its officers and employees
may disclose such information to such Seller Party’s and such Purchaser’s
external accountants and attorneys and as required by any applicable law or
order of any judicial or administrative proceeding.

 

(b)           Anything herein to the
contrary notwithstanding, each Seller Party hereby consents to the disclosure
of any nonpublic information with respect to it (i) to the Agent, the Financial
Institutions or Jupiter by each other, (ii) by the Agent or the Purchasers to
any prospective or actual assignee or participant of any of them and (iii) by
the Agent to any rating agency, Commercial Paper dealer or provider of a
surety, guaranty or credit or liquidity enhancement to Jupiter or any entity
organized for the purpose of purchasing, or making loans secured by, financial
assets for which Bank One acts as the administrative agent and to any officers,
directors, employees, outside accountants and attorneys of any of the foregoing,
provided each such Person is informed of the confidential nature of such
information.  In

 

35

 

addition, the Purchasers and the Agent may disclose
any such nonpublic information pursuant to any law, rule, regulation,
direction, request or order of any judicial, administrative or regulatory
authority or proceedings (whether or not having the force or effect of law).

 

Section 13.6           Bankruptcy Petition.  Seller, the Servicer, the Agent and each
Financial Institution hereby covenants and agrees that, prior to the date that
is one year and one day after the payment in full of all outstanding senior
indebtedness of Jupiter, it will not institute against, or join any other
Person in instituting against, Jupiter or any such entity any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings or other
similar proceeding under the laws of the United States or any state of the
United States.

 

Section 13.7           Limitation of Liability.  No claim may be made by any Seller Party or
any other Person against Jupiter, the Agent or any Financial Institution or
their respective Affiliates, directors, officers, employees, attorneys or
agents for any special, indirect, consequential or punitive damages in respect of
any claim for breach of contract or any other theory of liability arising out
of or related to the transactions contemplated by this Agreement, or any act,
omission or event occurring in connection therewith; and each Seller Party
hereby waives, releases, and agrees not to sue upon any claim for any such
damages, whether or not accrued and whether or not known or suspected to exist
in its favor.

 

Section 13.8           CHOICE OF LAW.  THIS AGREEMENT SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH
THE INTERNAL LAWS (AND NOT THE LAW OF CONFLICTS) OF THE STATE OF ILLINOIS.

 

Section 13.9           CONSENT TO JURISDICTION.  EACH SELLER PARTY HEREBY IRREVOCABLY SUBMITS
TO THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR ILLINOIS
STATE COURT SITTING IN CHICAGO, ILLINOIS IN ANY ACTION OR PROCEEDING ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR ANY DOCUMENT EXECUTED BY SUCH PERSON
PURSUANT TO THIS AGREEMENT AND EACH SELLER PARTY HEREBY IRREVOCABLY AGREES THAT
ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED
IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER
HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A
COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM.  NOTHING HEREIN SHALL LIMIT THE RIGHT OF THE AGENT OR ANY
PURCHASER TO BRING PROCEEDINGS AGAINST ANY SELLER PARTY IN THE COURTS OF ANY
OTHER JURISDICTION.  ANY JUDICIAL
PROCEEDING BY ANY SELLER PARTY AGAINST THE AGENT OR ANY PURCHASER OR ANY
AFFILIATE OF THE AGENT OR ANY PURCHASER INVOLVING, DIRECTLY OR INDIRECTLY, ANY
MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS AGREEMENT
OR ANY DOCUMENT EXECUTED BY SUCH SELLER PARTY PURSUANT TO THIS AGREEMENT SHALL
BE BROUGHT ONLY IN A COURT IN CHICAGO, ILLINOIS.

 

Section 13.10         WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES TRIAL BY
JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER
(WHETHER SOUNDING IN TORT, CONTRACT OR 

 

36

 

OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR
CONNECTED WITH THIS AGREEMENT, ANY DOCUMENT EXECUTED BY ANY SELLER PARTY
PURSUANT TO THIS AGREEMENT OR THE RELATIONSHIP ESTABLISHED HEREUNDER OR
THEREUNDER.

 

Section 13.11         Integration; Binding Effect; Survival of Terms.

 

(a)           This Agreement and each
other Transaction Document contain the final and complete integration of all
prior expressions by the parties hereto with respect to the subject matter
hereof and shall constitute the entire agreement among the parties hereto with
respect to the subject matter hereof superseding all prior oral or written
understandings.

 

(b)           This Agreement shall be
binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns (including any trustee in
bankruptcy).  This Agreement shall
create and constitute the continuing obligations of the parties hereto in
accordance with its terms and shall remain in full force and effect until
terminated in accordance with its terms; provided,
however, that the rights and remedies
with respect to (i) any breach of any representation and warranty made by any
Seller Party pursuant to Article V,
(ii) the indemnification and payment provisions of Article X,
and Sections 13.5 and 13.6 shall be continuing and shall survive
any termination of this Agreement.

 

Section 13.12         Counterparts; Severability; Section References.  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
when taken together shall constitute one and the same Agreement.  Any provisions of this Agreement which are
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.  Unless otherwise expressly indicated, all
references herein to “Article,” “Section,” “Schedule” or “Exhibit” shall mean
articles and sections of, and schedules and exhibits to, this Agreement.

 

Section 13.13         Bank One Roles.  Each of the Financial Institutions acknowledges that Bank One
acts, or may in the future act, (i) as administrative agent for Jupiter or any
Financial Institution, (ii) as issuing and paying agent for the Commercial
Paper, (iii) to provide credit or liquidity enhancement for the timely payment
for the Commercial Paper and (iv) to provide other services from time to time
for Jupiter or any Financial Institution (collectively, the “Bank One Roles”).  Without limiting the generality of this Section 13.13, each Financial Institution hereby
acknowledges and consents to any and all Bank One Roles and agrees that in
connection with any Bank One Role, Bank One may take, or refrain from taking,
any action that it, in its discretion, deems appropriate, including, without
limitation, in its role as administrative agent for Jupiter.

 

37

 

Section 13.14         Characterization.

 

(a)           It is the intention of
the parties hereto that each purchase hereunder shall constitute and be treated
as an absolute and irrevocable sale, which purchase shall provide the
applicable Purchaser with the full benefits of ownership of the applicable
Purchaser Interest.

 

(b)           In addition to any
ownership interest which the Agent may from time to time acquire pursuant
hereto, Seller hereby grants to the Agent for the ratable benefit of the
Purchasers a valid and perfected security interest in all of Seller’s right,
title and interest in, to and under all Receivables now existing or hereafter
arising, the Collections, each Lock-Box, each Collection Account, all Related
Security, all other rights and payments relating to such Receivables, and all
proceeds of any thereof prior to all other liens on and security interests
therein to secure the prompt and complete payment of the Aggregate
Unpaids.  The Agent and the Purchasers
shall have, in addition to the rights and remedies that they may have under
this Agreement, all other rights and remedies provided to a secured creditor
under the UCC and other applicable law, which rights and remedies shall be
cumulative.

 

Section 13.15         Terms Generally.  Whenever the context may require, any
pronoun shall include the corresponding masculine, feminine and neuter
forms.  The word “will” shall be
construed to have the same meaning and effect as the word “shall”.  Unless the context requires otherwise, (a)
any definition of or reference to any agreement, instrument or other document
herein shall be construed as referring to such agreement, instrument or other
document as from time to time amended, supplemented or otherwise modified
(subject to any restrictions on such amendments, supplements or modifications
set forth herein), (b) any reference herein to any person shall be construed to
include such person’s successors and assigns, (c) the words “herein”, “hereof”
and “hereunder”, and words of similar import, shall be construed to refer to
this Agreement in its entirety and not to any particular provision hereof.

 

Section 13.16         Accounting Terms.  (a) Except as otherwise specifically
provided herein, all terms of an accounting or financial nature shall be
construed in accordance with GAAP, as in effect from time to time; provided
that, if the Seller Parties notify the Agent that the Seller Parties request an
amendment to any provision of Article IX hereof (or any related
definition) to eliminate the effect of any change occurring after the date
hereof in GAAP or in the application thereof to such provision or definition
(or if the Agent notifies the Seller Parties that the Required Financial
Institutions request an amendment to any such provision or definition hereof
for such purposes), regardless of whether any such notice is given before or
after such change in GAAP or in the application thereof, then such provision
shall be interpreted on the basis of GAAP as in effect and applied immediately
before such change shall have become effective until such notice shall have
been withdrawn or such provision or definition amended in accordance with the
requirements of this Agreement. 
Notwithstanding anything in this Section 13.6 to the contrary, in
the event that there is a change in GAAP or in the application thereof
occurring after the date hereof mandating the expensing of stock options or
comparable equity based compensation, without further action by the Agent or
any Seller Party, such changes requiring the expensing of stock options or
comparable equity based compensation shall be disregarded and this Agreement
shall be interpreted on the basis of GAAP as in effect and applied immediately
before such change shall have become effective.

 

38

 

(b)           The financial
statements to be furnished to the Agent and the Purchasers pursuant hereto
shall be made and prepared in accordance with GAAP consistently applied
throughout the periods involved (except as set forth in the notes thereto or as
otherwise disclosed in writing by the Seller to the Agent and the Purchasers); provided,
that if at any time the computations determining compliance with Article IX
utilize accounting principles different from those utilized in the financial
statements furnished to the Agent and the Purchasers, such computations shall
set forth in reasonable detail a description of the differences and the effect
upon such computations.

 

Section 13.17         Performance
Undertaking.  Provider agrees that,
contemporaneously with the execution and delivery of this Agreement, it is
executing and delivering the Performance Undertaking, in the form attached
hereto as Schedule C, in order to guaranty, among other things, obligations of
the Servicer under or in connection with this Agreement.

 

[SIGNATURE PAGES
FOLLOW]

 

39

 

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

 

	
   

  	
  GENLYTE
  RECEIVABLES

  CORPORATION,

  
	
   

  	
  as Seller

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  William G. Ferko

  	
   

  
	
   

  	
  Name:

  	
  William G.
  Ferko

  
	
   

  	
  Title:

  	
  Treasurer

  
	
   

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
  Genlyte
  Receivables Corporation

  	
   

  
	
   

  	
  300 Delaware
  Avenue, Suite 1704

  	
   

  
	
   

  	
  Wilmington,
  Delaware 19801

  	
   

  
	
   

  	
  Attention:
  CFO of

  	
   

  
	
   

  	
  Genlyte
  Thomas Group LLC

  	
   

  
	
   

  	
  Phone: (302)
  427-5728

  	
   

  
	
   

  	
  Fax: (502)
  420- 9540

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  With a copy
  to the Servicer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GENLYTE
  THOMAS GROUP LLC,

  
	
   

  	
  as initial
  Servicer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:  

  	
  /s/  William G. Ferko

  	
   

  
	
   

  	
  Name:

  	
  William G.
  Ferko

  
	
   

  	
  Title:

  	
  Chief
  Financial Officer and VicePresident

  
	
   

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
  Genlyte
  Thomas Group LLC

  	
   

  
	
   

  	
  10350 Ormsby
  Park Place

  	
   

  
	
   

  	
  Suite 601

  	
   

  
	
   

  	
  Louisville,
  Kentucky  40223

  	
   

  
	
   

  	
  Attention:  Treasurer

  	
   

  
	
   

  	
  Phone:  (502) 420-9500

  	
   

  
	
   

  	
  Fax:  (502) 420-9540

  	
   

  
							

 

S-1

 

	
   

  	
  THE GENLYTE
  GROUP

  INCORPORATED,

  
	
   

  	
  as Provider

  
	
   

  	
   

  
	
   

  	
  By:  

  	
  /s/  William G. Ferko

  	
   

  
	
   

  	
  Name:

  	
  William G.
  Ferko

  
	
   

  	
  Title:

  	
  Chief
  Financial Officer, Vice

  President, & Treasurer

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
  As specified
  in the Performance

  Undertaking

  
					

 

S-2

 

	
   

  	
  JUPITER
  SECURITIZATION

  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/  Maureen E. Marcon

  	
   

  
	
   

  	
  Authorized
  Signatory

  
	
   

  	
   

  
	
   

  	
  Address:  c/o Bank One, NA (Main Office

  
	
   

  	
  Chicago), as
  Agent

  
	
   

  	
  Asset Backed
  Finance

  
	
   

  	
  Suite
  IL1-0079

  
	
   

  	
  1 Bank One
  Plaza

  
	
   

  	
  Chicago,
  Illinois  60670-0079

  
	
   

  	
  Attention:
  Jupiter Funding Manager

  
	
   

  	
  Phone:  (312) 732-5366

  
	
   

  	
  Fax:  (312) 732-1844

  

 

S-3

 

	
   

  	
  BANK ONE, NA
  (MAIN OFFICE

  CHICAGO), as a Financial Institution and as Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:  

  	
  /s/  Maureen E. Marcon

  	
   

  
	
   

  	
  Name:

  	
  Maureen E.
  Marcon

  
	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  
	
   

  	
  Address:  Bank One, NA (Main Office Chicago)

  
	
   

  	
  Asset Backed
  Finance

  
	
   

  	
  Suite
  IL1-0594

  
	
   

  	
  1 Bank One
  Plaza

  
	
   

  	
  Chicago,
  Illinois  60670-0594

  
	
   

  	
  Attention:
  Transaction Management

  
	
   

  	
  Phone:  (312) 732-3133

  
	
   

  	
  Fax:  (312) 732-2245

  
					

 

S-4

 

EXHIBIT I

 

DEFINITIONS

 

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):

 

 “Adverse Claim”
means a lien, security interest, charge or encumbrance, or other right or claim
in, of or on any Person’s assets or properties in favor of any other Person.

 

“Affected Financial Institution” has the
meaning specified in Section 12.1(c).

 

“Affiliate” means, with respect to any Person,
any other Person directly or indirectly controlling, controlled by, or under
direct or indirect common control with, such Person or any Subsidiary of such
Person.  A Person shall be deemed to
control another Person if the controlling Person owns 10% or more of any class
of voting securities of the controlled Person or possesses, directly or indirectly,
the power to direct or cause the direction of the management or policies of the
controlled Person, whether through ownership of stock, by contract or
otherwise.

 

“Agent” has the meaning set forth in the
preamble to this Agreement.

 

“Aggregate Capital” means, on any date of
determination, the aggregate amount of Capital of all Purchaser Interests
outstanding on such date.

 

“Aggregate Reduction” has the meaning
specified in Section 1.3.

 

“Aggregate Reserves” means, on any date of
determination, the sum of the Loss Reserve, the Yield and Servicer Fee Reserve
and the Dilution Reserve.

 

“Aggregate Unpaids” means, at any time, an
amount equal to the sum of all accrued and unpaid fees under the Fee Letter,
Jupiter Costs, Yield, Aggregate Capital and all other unpaid Obligations
(whether due or accrued) at such time.

 

“Agreement” means this Receivables Purchase
Agreement, as it may be amended or modified and in effect from time to time.

 

“Amortization Date” means the earliest to
occur of (i) the day on which any of the conditions precedent set forth in Section 6.2 are not satisfied, (ii) the
Business Day immediately prior to the occurrence of an Amortization Event set
forth in Section 9.1(d)(ii), (iii) the
Business Day specified in a written notice from the Agent following the
occurrence of any other Amortization Event, (iv) the date which is thirty (30)
days after the Agent’s receipt of written notice from Seller that it wishes to
terminate the facility evidenced by this Agreement and (v) the date of any assignment
by Jupiter of all or any portion of its Purchaser Interests to a Funding Source
under the related Funding Agreement.

 

“Amortization Event” has the meaning specified
in Article IX.

 

“Assignment Agreement” has the meaning set
forth in Section 12.1(b).

 

I-1

 

“Authorized
Officer” means any officer of a Seller Party whose title is (including any
title which is substantially the same as): 
(i) Chief Executive Officer, (ii) President, (iii) Chief Financial
Officer or Vice President-Finance, or (iv) Treasurer.

 

“Bank
Borrower” means, at any time, Provider, the Originator, Genlyte Holdings
Inc., Genlyte Lighting Corporation, Genlyte CLP Scotia ULC, Genlyte CGP Nova
Scotia ULC and any other Person that is a “Borrower” as defined in the Bank
Credit Agreement.

 

“Bank
Credit Agreement” means the Amended and Restated Credit Agreement, dated as
of August 2, 2004, among Provider, certain of its Subsidiaries, National City
Bank of Kentucky, as Administrative Agent, and the other financial institutions
party thereto, as the same may be amended, restated or otherwise modified from
time to time.

 

“Bank
Credit Lender” means each Lender (as defined in the Bank Credit Agreement).

 

“Bank
Credit Party” shall mean each of the Bank Borrowers, the guarantors under
the Bank Credit Agreement and any other Subsidiary that is party to any of the
Credit Documents (as defined in the Bank Credit Agreement).

 

“Bank
Maturity Date” shall mean July 31, 2009, or such earlier date on which the
Total Commitment (as defined in the Bank Credit Agreement) is terminated.

 

“Bank One” means Bank One, NA (Main Office
Chicago) in its individual capacity and its successors.

 

“Broken Funding Costs” means for any Purchaser
Interest which: (i) has its Capital reduced without compliance by Seller with
the notice requirements hereunder or (ii) does not become subject to an
Aggregate Reduction following the delivery of any Reduction Notice or (iii) is
at any time assigned by Jupiter to any Funding Source or terminated prior to
the date on which it was originally scheduled to end; an amount equal to the
excess, if any, of (A) the Jupiter Costs or Yield (as applicable) that would
have accrued during the remainder of the Calculation Periods or Tranche
Periods, as the case may be, determined by the Agent to relate to such
Purchaser Interest (as applicable) subsequent to the date of such reduction,
assignment or termination (or in respect of clause (ii) above, the date such
Aggregate Reduction was designated to occur pursuant to the Reduction Notice)
of the Capital of such Purchaser Interest if such reduction, assignment or
termination had not occurred or such Reduction Notice had not been delivered,
over (B) the sum of (x) to the extent all or a portion of such Capital is
allocated to another Purchaser Interest, the amount of Jupiter Costs or Yield
actually accrued during the remainder of such period on such Capital for the
new Purchaser Interest, and (y) to the extent such Capital is not allocated to
another Purchaser Interest, the income, if any, actually received during the
remainder of such period by the holder of such Purchaser Interest from
investing the portion of such Capital not so allocated.  In the event that the amount referred to in
clause (B) exceeds the amount referred to in clause (A), the relevant Purchaser
or Purchasers agree to pay to Seller the amount of such excess.  All Broken Funding Costs shall be due and
payable hereunder upon demand.

 

“Business Day” means any day on which banks
are not authorized or required to close in New York, New York or Chicago,
Illinois and The Depository Trust Company of New York is 

 

I-2

 

open for business, and, if the
applicable Business Day relates to any computation or payment to be made with
respect to the LIBO Rate, any day on which dealings in dollar deposits are
carried on in the London interbank market.

 

“Calculation
Period” means, with respect to any Purchaser Interest, each period from,
and including, one Period End Date to, but excluding, the next following
applicable Period End Date, except that the initial Calculation Period will
commence on, and include, the date of the initial purchase hereunder.

 

“Capital” of any Purchaser Interest means, at
any time, (A) the Purchase Price of such Purchaser Interest, minus (B) the sum
of the aggregate amount of Collections and other payments received by the Agent
which in each case are applied to reduce such Capital in accordance with the
terms and conditions of this Agreement; provided that such Capital shall
be restored (in accordance with Section 2.5)
in the amount of any Collections or other payments so received and applied if
at any time the distribution of such Collections or payments are rescinded,
returned or refunded for any reason.

 

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

 

“Capitalized
Lease Obligations” means all obligations under Capital Leases of any Bank
Credit Party, in each case taken at the amount thereof accounted for as
liabilities identified as “capital lease obligations” (or any similar words) on
a balance sheet of such Bank Credit Party as prepared in accordance with GAAP.

 

“Cash
Discount Reserve” means, at any time, an amount equal to the product of (a)
1.25, multiplied  by (b) the aggregate original Outstanding
Balance of all Receivables originated during the immediately preceding two
Fiscal Months, multiplied  by (c) the arithmetic average, for the
twelve immediately preceding Fiscal Months, of the ratios (expressed as
percentages), of (x) the aggregate of all Cash Discounts that were provided (or
in accordance with Disclosed Methods should have been provided) by the Seller
Parties during such Fiscal Month, divided by (y) the aggregate original
Outstanding Balance of all Receivables originated during such Fiscal Month.

 

“Cash
Discounts” means all cash discounts, deductions or reductions (for prompt
payment or otherwise) on Receivables that were provided (or in accordance with
Disclosed Methods should have been provided) to an Obligor by the Originators,
which discount is permitted by the terms of such Receivables to be deducted by
such Obligor from the payment remitted by such Obligor with respect to such
Receivable.

 

“Change of
Control” means the occurrence of any of the following:

 

(a)           any “Person” (as such
term is used in Sections 13(d) and 14(d) of the Exchange Act) who is or becomes
the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange
Act, except that for the purposes of this clause (a) such Person shall be
deemed to have “beneficial ownership” of all shares that any such Person has the
right to acquire, whether such right is exercisable immediately or only after
the passage of time), directly or indirectly, of more 

 

I-3

than 25% of either the
aggregate ordinary voting power or the aggregate equity value represented by
the issued and outstanding capital stock in Provider;

 

(b)           individuals who
constituted the Board of Directors of Provider at any given time (together with
any new directors whose election by such Board of Directors or whose nomination
for election by the shareholders of Provider as approved by a vote of 66-2/3%
of the directors of Provider then still in office who were either directors at
such time or whose election or nomination for election was previously so
approved) cease for any reason to constitute a majority of the Board of
Directors then in office;

 

(c)           the adoption of a plan
relating to the liquidation or dissolution of Provider;

 

(d)           the merger or consolidation
of Provider with or into another Person or the merger of another Person with or
into Provider, or the sale of all or substantially all the assets of Provider
(determined on a consolidated basis) to another Person, other than a merger or
consolidation transaction in which holders of capital stock representing 100%
of the ordinary voting power represented by capital stock in Provider
immediately prior to such transaction (or other securities into which such
securities are converted as part of such merger or consolidation transaction)
own directly or indirectly at least 80% of the ordinary voting power
represented by, as the case may be, shares of capital stock, membership
interests, partnership interests or equivalent equity interests in the surviving
Person in such merger or consolidation transaction issued and outstanding
immediately after such transaction and in substantially the same proportion as
before the transaction; or

 

(e)           Provider shall cease to
own, directly or indirectly, 100% of the issued and outstanding equity of each
other Seller Party.

 

“Charged-Off Receivable” means a Receivable
(other than a Collection/Attorney Receivable): (i) as to which the Obligor
thereof has taken any action, or suffered any event to occur, of the type
described in Section 9.1(d) (as if
references to Seller Party therein refer to such Obligor), (ii) as to which the
Obligor thereof, if a natural person, is deceased, (iii) which, consistent with
the Credit and Collection Policy, would be written off Seller’s books as
uncollectible, (iv) which has been identified by Seller as uncollectible or (v)
as to which any payment, or part thereof (other than with respect to any Dating
Receivable), remains unpaid for 181 days or more from the original invoice date
for such payment.

 

“Collection Account” means each concentration
account, depositary account, lock-box account or similar account in which any
Collections are collected or deposited and which is listed on Exhibit IV.

 

“Collection Account Agreement” means an
agreement substantially in the form of Exhibit VI
among Originator, Seller, the Agent and a Collection Bank.

 

“Collection/Attorney
Receivable” means any Receivable which is, or in accordance with Disclosed
Methods should be, reported, classified or described on any Seller Party’s
books and records as a “Collection/Attorney” receivable; provided, however,
that the term “Collection/Attorney Receivable” does not include any Receivable
that has been or should be charged or written off any Seller Party’s books as
uncollectible.

 

I-4

 

“Collection Bank” means, at any time, any of
the banks holding one or more Collection Accounts.

 

“Collection Notice” means a notice, in
substantially the form of Annex A to Exhibit VI,
from the Agent to a Collection Bank.

 

“Collections” means, with respect to any
Receivable, all cash collections and other cash proceeds in respect of such
Receivable, including, without limitation, all yield, Finance Charges or other
related amounts accruing in respect thereof and all cash proceeds of Related
Security with respect to such Receivable and all Deemed Collections with
respect thereto.

 

“Commercial Paper” means promissory notes of
Jupiter issued by Jupiter in the commercial paper market.

 

“Commitment” means, for each Financial
Institution, the commitment of such Financial Institution to purchase Purchaser
Interests from Seller in an amount not to exceed (i) in the aggregate, the
amount set forth opposite such Financial Institution’s name on Schedule A to this Agreement, as such amount
may be modified in accordance with the terms hereof and (ii) with respect to
any individual purchase hereunder, its Pro Rata Share of the Purchase Price
therefor.

 

“Commitment Availability” means at any time
the positive difference (if any) between (a) an amount equal to the aggregate
amount of the Commitments at such time minus
(b) the Aggregate Capital at such time.

 

“Commodity
Hedge Agreement” shall mean any commodity swap agreement, forward commodity
purchase agreement, forward commodity option agreement or similar agreement or
arrangement.

 

“Concentration Limit” means, at any time, for
any Obligor, 4.0% of the aggregate Net Eligible Receivables Balance at such
time, or such other amount (a “Special Concentration Limit”) for such Obligor
designated by the Agent; provided, that
in the case of an Obligor and any Affiliate of such Obligor, the Concentration
Limit shall be calculated as if such Obligor and such Affiliate are one
Obligor; and provided, further, that
Jupiter or the Required Financial Institutions may, upon not less than three
Business Days’ notice to Seller, cancel any Special Concentration Limit.

 

 “Consolidated Amortization Expense”
means, for any period, the amortization expenses of Provider and its Subsidiaries,
calculated on a consolidated basis and determined in accordance with GAAP.

 

“Consolidated
Capital Expenditures” means, for any period, the sum of all expenditures
for property, plant or equipment (whether paid in cash or accrued as
liabilities and including in all events amounts expended or capitalized under
Capital Leases and Synthetic Leases but excluding any amount representing
capitalized interest) by Provider and its Subsidiaries on a consolidated basis
during that period.

 

I-5

 

“Consolidated
Depreciation Expense” means, for any period, the consolidated depreciation
expenses of Provider and its Subsidiaries, calculated on a consolidated basis
and determined in accordance with GAAP.

 

“Consolidated
EBIT” means, for any period, Consolidated Net Income for such period; plus
(A) the sum (without duplication) of the amounts for such period included in
determining such Consolidated Net Income of (i) Consolidated Interest Expense,
(ii) Consolidated Income Tax Expense, (iii) extraordinary and other
non-recurring non-cash losses and charges and (iv) a non-cash inventory charge
under purchase accounting in connection with the acquisition of the Thomas
Interests by Subsidiaries of Provider; minus (B) extraordinary gains on
sales of assets and other extraordinary or other non-recurring gains, of
Provider and its Subsidiaries, calculated on a consolidated basis, and
determined in accordance with GAAP.

 

“Consolidated
EBITDA” means, for any period, Consolidated EBIT for such period; plus
the sum (without duplication) of the amounts for such period included in
determining Consolidated Net Income of Consolidated Depreciation Expense and
Consolidated Amortization Expense of Provider and its Subsidiaries, calculated
on a consolidated basis and determined in accordance with GAAP.

 

“Consolidated
Income Tax Expense” means, for any period, all provisions for taxes based
on the net income of Provider and its Subsidiaries (including, without
limitation, any additions to such taxes, and any penalties and interest with
respect thereto), calculated on a consolidated basis and determined in
accordance with GAAP.

 

“Consolidated
Interest Coverage Ratio” means, for any Testing Period, the ratio of (i)
Consolidated EBIT for such Testing Period, to (ii) Consolidated Interest
Expense for such Testing Period as determined at the end of any fiscal quarter;
provided,  however,
that in computing Consolidated EBIT and Consolidated Interest Expense for each
of the Testing Periods ending on or prior to June 30, 2005, Consolidated EBIT
and Consolidated Interest Expense shall be determined as if Provider had owned,
directly or indirectly, 100% of, as the case may be, the partnership interests
or the membership interests in Genlyte and GTG Intangible during all of such
Testing Period.

 

“Consolidated
Interest Expense” means, for any period, the total of interest expense
(including that which is capitalized, that which is attributable to Capital
Leases (but not to Synthetic Leases) and the pre-tax equivalent of dividends
payable on Redeemable Stock that has a liquidation preference over common
stock, and that which is Yield, of Provider and its Subsidiaries, calculated on
a consolidated basis and determined in accordance with GAAP, with respect to
all outstanding Indebtedness of the Provider and its Subsidiaries, including,
without limitation, all commissions, discounts and other fees and charges owed
with respect to letters of credit and net obligations under Financial Hedge
Agreements, but excluding,  however, any interest expense in respect of any
amortization or write-off of deferred financing costs and any charges for
prepayment penalties on prepayment of Indebtedness.

 

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

 

I-6

 

“Consolidated
Net Worth” means, as of any date, the difference between the assets and
liabilities as referred on Provider’s consolidated balance sheet, determined in
accordance with GAAP.

 

“Consolidated
Total Debt” means, at any time, the principal amount (or Capitalized Lease
Obligation, in the case of a Capital Lease, or present value, based on the
implicit interest rate, in the case of any Synthetic Lease, or the higher of
liquidation value or stated value, in the case of Redeemable Stock) of all
Indebtedness of Provider and its Subsidiaries, without duplication, determined
on a consolidated basis, including without limitation, the Aggregate Capital at
such time.

 

“Contract” means, with respect to any
Receivable, any and all instruments, agreements, invoices or other writings
pursuant to which such Receivable arises or which evidences such Receivable.

 

 “Credit and
Collection Policy” means Seller’s credit and collection policies and
practices relating to Contracts and Receivables existing on the date hereof and
summarized in Exhibit VIII hereto, as
modified from time to time in accordance with this Agreement.

 

“Dating
Receivable” means any Receivable which, by its terms, is due and payable
more than 60 days from the original invoice date therefor, and classified by
any Seller Party on its books and records in accordance with Disclosed Methods
as a “Dating Receivable”; it  being  understood that
following the date that payment is due with respect to any Receivable
originally classified as a “Dating Receivable” such Receivables shall no longer
be a “Dating Receivable” for purposes of this Agreement or any other
Transaction Document.

 

“Deemed Collections”  means the aggregate of all amounts Seller shall have been deemed
to have received as a Collection of a Receivable.  Seller shall be deemed to have received a Collection in full of a
Receivable if at any time (i) the Outstanding Balance of any such Receivable is
either (x) reduced as a result of any defective or rejected goods or services,
any discount, rebate or any adjustment or otherwise (including, without limitation,
Cash Discounts and Rebates) by Seller or applicable Originator (other than cash
Collections on account of the Receivables) or (y) reduced or canceled as a
result of a setoff in respect of any claim by any Person (whether such claim
arises out of the same or a related transaction or an unrelated transaction) or
(ii) any of the representations or warranties in Article
V are no longer true with respect to any Receivable.

 

“Default Fee” means with respect to any amount
due and payable by Seller in respect of any Aggregate Unpaids, an amount equal
to the greater of (i) $1000 and (ii) interest on any such unpaid Aggregate
Unpaids at a rate per annum equal to 3% above the Prime Rate.

 

 “Default Trigger Ratio” means, at any
time, the arithmetic average for the three immediately preceding Fiscal Months
ending on or prior to such date of the Loss Ratios for each such Fiscal Month.

 

“Delinquency Trigger Ratio” means, at any
time, the arithmetic average for the three immediately preceding Fiscal Months
of the ratios (expressed as percentages) calculated as of the last date of each
such Fiscal Month, equal to (i) the aggregate Outstanding Balance of all 

 

I-7

 

Receivables that were
Delinquent Receivables as of the last day of such Fiscal Month, divided  by
(ii) the aggregate Outstanding Balance of all Receivables as of the last day of
such Fiscal Month.

 

“Delinquent Receivable” means a Receivable
(other than a Dating Receivable) as to which any payment, or part thereof, remains
unpaid for more than 90 days from the original invoice date for such payment.

 

“Designated Obligor” means an Obligor
indicated by the Agent to Seller in writing.

 

“Dilution
Horizon Factor” means, for any Fiscal Month:

 

(a)           if the ratio of (i) the
amount of Consolidated Total Debt as of the end of the immediately preceding
Testing Period ending on or prior to such date 
(commencing with the Testing Period ending September 30, 2004) to (ii)
Consolidated EBITDA for such Testing Period, is less than or equal to 3.0 to
1.00, a fraction, the numerator of which equals the aggregate original
Outstanding Balance of all Receivables originated during such Fiscal Month and
the two immediately preceding Fiscal Months, and the denominator of which
equals the Net Eligible Receivables Balance as of the last day of such Fiscal
Month, and

 

(b)           if the ratio of (i) the
amount of Consolidated Total Debt as of the end of the immediately preceding
Testing Period ending on or prior to such date 
(commencing with the Testing Period ending September 30, 2004) to (ii)
Consolidated EBITDA for such Testing Period, is greater than 3.0 to 1.00, a
fraction, the numerator of which equals the aggregate original Outstanding
Balance of all Receivables originated during such Fiscal Month and the three
immediately preceding Fiscal Months, and the denominator of which equals the
Net Eligible Receivables Balance as of the last day of such Fiscal Month.

 

 “Dilution Percentage” means as of any
date of determination the greater of (i) 10% and (ii) a percentage calculated
in accordance with the following formula:

 

DP = [(2 x ADR) + [(HDR - ADR) x (HDR/ADR)]]
x DHF

 

where:

 

DP           =      the Dilution Percentage;

 

ADR       =      the average of the monthly
Dilution Ratios occurring during the 12 immediately preceding Fiscal Months;

 

HDR       =      (a) if the ratio of (i) the
amount of Consolidated Total Debt as of the end of the immediately preceding
Testing Period ending on or prior to such date 
(commencing with the Testing Period ending September 30, 2004) to (ii)
Consolidated EBITDA for such Testing Period, is less than or equal to  3.0 to 1.00, 

 

I-8

 

the highest three-month rolling average of Dilution Ratios occurring
during the 12 immediately preceding Fiscal Months, and

(b) if the ratio of (i) the amount of Consolidated Total Debt as of the
end of the immediately preceding Testing Period ending on or prior to such
date  (commencing with the Testing
Period ending September 30, 2004) to (ii) Consolidated EBITDA for such Testing
Period, is greater than to  3.0 to 1.00,
the highest four-month rolling average of Dilution Ratios occurring during the
12 most immediately preceding Fiscal Months; and

 

DHF        =      the Dilution Horizon Factor
at such time.

 

“Dilution
Ratio” means, for any Fiscal Month, a percentage equal to (i) the aggregate
amount of Dilutions (other than Cash Discounts and Rebates used in the
calculations of the Cash Discount Reserve and Rebate Reserve, respectively,
with respect to such Fiscal Month) which occurred during such Fiscal Month,
divided by (ii) the aggregate original Outstanding Balance of all Receivables
generated during the fourth preceding Fiscal Month.

 

“Dilution
Reserve” means, at any time, an amount equal to the product of (a) the Net
Receivables Balance as of the close of business on such date, and (b) the
Dilution Percentage.

 

“Dilution
Trigger Ratio” means, at any time, the arithmetic average for the three
immediately preceding Fiscal Months ending on or prior to such date of the
Dilution Ratio for each such Fiscal Month.

 

“Dilutions” means, at any time, the aggregate
amount of reductions or cancellations described in clause (i) of the definition
of “Deemed Collections”.

 

“Disclosed
Methods” means, in connection with any item recorded in the books and records
of the Seller Parties or paid or provided by the Seller Parties, the practices
and procedures employed by the Seller Parties prior to the date of this
Agreement, as such practices and procedures were disclosed to the Agent prior
to the date of this Agreement.

 

“Discount Rate” means (x) the LIBO Rate plus
1.0 % per  annum, or (y) the Prime Rate, as applicable, with
respect to each Purchaser Interest of the Financial Institutions or funded by
Jupiter using proceeds received from any Funding Source under the related
Funding Agreement.

 

“Eligible Receivable” means, at any time, a
Receivable:

 

(i)  the Obligor of which (a) if a natural
person, is a resident of the United States or, if a corporation or other
business organization, is organized under the laws of the United States or any
political subdivision thereof and has its chief executive office in the United
States; (b) is not an Affiliate of any of the parties hereto; (c) is not a
Designated Obligor;  (d) is not a government
or a governmental subdivision or agency; and (e) is not a Sales Representative
of the Seller, the Servicer, any Originator or any Affiliate thereof,

 

(ii)  the Obligor of which is not the Obligor of
any Charged-Off Receivable,

 

(iii)  which is not a Charged-Off Receivable or a
Delinquent Receivable,

 

(iv)  which by its terms (other than in the case
of Dating Receivables) is due and payable within 60 days of the original
billing date therefor and has not had its payment terms extended,

 

(v)  which is an “account” within the meaning of
Section 9-102 of the UCC of all applicable jurisdictions,

 

I-9

 

(vi)  which is denominated and payable only in
United States dollars in the United States,

 

(vii)  which arises under an invoice in
substantially the form of one of the form invoices set forth on Exhibit IX
hereto (or an invoice or contract otherwise approved by the Agent in writing),
which, together with such Receivable, is in full force and effect and
constitutes the legal, valid and binding obligation of the related Obligor
enforceable against such Obligor in accordance with its terms subject to no
offset, counterclaim or other defense,

 

(viii)  which arises under a Contract which (A) does
not require the Obligor under such Contract to consent to the transfer, sale or
assignment of the rights and duties of Originator or any of its assignees under
such Contract and (B) does not contain a confidentiality provision that
purports to restrict the ability of any Purchaser to exercise its rights under this
Agreement, including, without limitation, its right to review the Contract,

 

(ix)  which arises under a Contract that contains
an obligation to pay a specified sum of money, contingent only upon the sale of
goods or the provision of services by the applicable Originator,

 

(x)  which, together with the Contract related
thereto, does not contravene any law, rule or regulation applicable thereto
(including, without limitation, any law, rule and regulation relating to truth
in lending, fair credit billing, fair credit reporting, equal credit
opportunity, fair debt collection practices and privacy) and with respect to
which no part of the Contract related thereto is in violation of any such law,
rule or regulation,

 

(xi)  which satisfies all applicable requirements
of the Credit and Collection Policy,

 

(xii)  which was generated in the ordinary course
of an Originator’s business,

 

(xiii)  which arises solely from the sale of goods
and/or the provision of services to the related Obligor by the applicable
Originator, and not by any other Person (in whole or in part),

 

(xiv)  as to which the Agent has not notified
Seller that the Agent has determined that such Receivable or class of
Receivables is not acceptable as an Eligible Receivable, including, without
limitation, because such Receivable arises under a Contract that is not
acceptable to the Agent,

 

(xv)  which is not subject to any right of
rescission, set-off, counterclaim, contra account, any other defense (including
defenses arising out of violations of usury laws) of the applicable Obligor
against the applicable Originator or any other Adverse Claim, and the Obligor
thereon holds no right as against such Originator to cause such Originator to
repurchase the goods or merchandise the sale of which shall have given rise to
such Receivable (except with respect to sale discounts effected pursuant to the
Contract, or defective goods returned in accordance with the terms of the
Contract),

 

I-10

 

(xvi)  as to which the applicable Originator has
satisfied and fully performed all obligations on its part with respect to such
Receivable required to be fulfilled by it, and no further action is required to
be performed by any Person with respect thereto other than payment thereon by
the applicable Obligor,

 

(xvii)  all right, title and interest to and in
which has been validly transferred by the applicable Originator directly to
Seller (or, in the case of any Originators that are Original Sellers, to
Genlyte) under and in accordance with the Receivables Sale Agreement, and
Seller has good and marketable title thereto free and clear of any Adverse
Claim; and

 

(xviii)  which, in the case of any Dating Receivable
(x) has not had its payment terms extended and (y) when added to the aggregate
Outstanding Balance of all other Dating Receivables, does not cause such
Outstanding Balance to exceed 15% of the aggregate Outstanding Balance of all
Receivables; provided, however that not more than 15% of all Dating
Receivable included, at any time, in the Net Receivables Pool as Eligible
Receivable may have payment terms that provide for the payment of such
Receivable greater than or equal to 360 days from the original billing date
therefor.

 

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

 

“Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended.

 

“Facility Account” means Seller’s Account No.
5606118962 at PNC Bank, National Association.

 

 “Facility
Termination Date” means the earliest of (i) July 27, 2007, (ii) the
Scheduled Commitment Termination Date of all Financial Institutions, (iii) the
Amortization Date and (iv) the date of expiration of any liquidity
facility provided to Jupiter in connection with this Agreement by any Funding
Source.

 

“Federal Bankruptcy Code” means Title 11 of
the United States Code entitled “Bankruptcy,” as amended and any successor
statute thereto.

 

“Federal Funds Effective Rate” means, for any
period, a fluctuating interest rate per annum for each day during such period
equal to (a) 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 preceding Business Day) by the Federal Reserve Bank of New York in
the Composite Closing Quotations for U.S. Government Securities; or (b) if such
rate is not so published for any day which is a Business Day, the average of
the quotations at approximately 10:30 a.m. (Chicago time) for such day on such
transactions received by the Agent from three federal funds brokers of
recognized standing selected by it.

 

“Fee Letter” means that certain letter
agreement dated as of the date hereof among Seller, the Servicer and the Agent,
as it may be amended or modified and in effect from time to time.

 

I-11

 

“Finance Charges” means, with respect to a
Contract, any finance, interest, late payment charges or similar charges owing
by an Obligor pursuant to such Contract.

 

“Financial
Hedge Agreement” shall mean (i) any interest rate swap agreement, any
interest rate cap agreement, any interest rate collar agreement or other
similar agreement or arrangement; and (ii) any currency swap agreement, forward
currency purchase agreement or similar agreement or arrangement.

 

“Financial Institutions” has the meaning set
forth in the preamble in this Agreement.

 

“Fiscal
Month” means a fiscal month used by Provider and its subsidiaries in
maintaining their books and records, provided that such month is
determined pursuant to Disclosed Methods.

 

“Funding Agreement” means any agreement or
instrument executed by any Funding Source with or for the benefit of Jupiter.

 

“Funding Source” means (i) any Financial
Institution or (ii) any insurance company, bank or other funding entity
providing liquidity, credit enhancement or back-up purchase support or
facilities to Jupiter.

 

“GAAP”
means accounting principles generally accepted in the United States as in
effect from time to time; it being understood and agreed that determinations in
accordance with GAAP for purposes of Article IX, including defined terms
as used therein, are subject (to the extent provided therein) to Section
13.16.

 

“Genlyte Bankruptcy
Event” means Provider or any of the Material Subsidiaries shall commence a
voluntary case concerning itself under Title 11 of the United States Code
entitled “Bankruptcy,” as now or hereafter in effect, or any successor thereto
(the “Bankruptcy Code”) or an equivalent statute under the laws of
Canada or any province thereof; or an involuntary case is commenced against
Provider or any of the Material Subsidiaries and the petition is not
controverted within 30 days, or is not dismissed within 45 days, after
commencement of the case; or a custodian (as defined in the Bankruptcy Code) or
equivalent appointee under the laws of Canada or any province thereof is
appointed for, or takes charge of, all or substantially all of the property of
Provider or any of the Material Subsidiaries; or any of Provider or a Material
Subsidiary commences (including by way of applying for or consenting to the
appointment of, or the taking of possession by, a rehabilitator, receiver,
custodian, trustee, conservator or liquidator (collectively, a “conservator”)
of itself or all or any substantial portion of its property) any other
proceeding under any reorganization, arrangement, adjustment of debt, relief of
debtors, dissolution, insolvency, liquidation, rehabilitation, conservatorship
or similar law of any jurisdiction whether now or hereafter in effect relating
to Provider or any of the Material Subsidiaries; or any such proceeding is
commenced against Provider or any of the Material Subsidiaries to the extent
such proceeding is consented to by such Person or remains undismissed for a
period of 45 days; or Provider or any of the Material Subsidiaries is
adjudicated insolvent or bankrupt; or any order of relief or other order
approving any such case or proceeding is entered; or Provider or any of the
Material Subsidiaries suffers any appointment of any conservator or the like
for it or any substantial part of its property which continues undischarged or
unstayed for a period of 45 days; or Provider or any of the Material Subsidiaries

 

I-12

 

makes a general assignment for
the benefit of creditors; or any corporate (or similar organizational) action
is taken by Provider or any of the Material Subsidiaries for the purpose of
effecting any of the foregoing.

 

“Genlyte
Cross Default” means Provider or any of its Subsidiaries shall (i) permit
the occurrence of an “event of default” (or equivalent event or condition
otherwise named) under a Specified Hedge Agreement or otherwise shall default
in the observance or performance of any agreement or condition under a
Specified Hedge Agreement (and all grace periods, if any, applicable to such
observance, performance or condition shall have expired), the effect of which
“event of default” or other default is to cause or to permit the Bank Credit
Lender or Affiliate thereof that is a party to such Specified Hedge Agreement
to require an early termination thereof, (ii) default in any payment with
respect to any Indebtedness in excess, in the aggregate, of $10,000,000 owed to
any Person, and such default shall continue after the applicable grace period,
if any, specified in the agreement or instrument relating to such Indebtedness
in excess, in the aggregate, of $10,000,000, or (iii) default in the observance
or performance of any agreement or condition relating to any such Indebtedness
in excess, in the aggregate, of $10,000,000 or contained in any instrument or
agreement evidencing, securing or relating thereto (and all grace periods
applicable to such observance, performance or condition shall have expired), or
any other event shall occur or circumstance shall exist, the effect of which
default or other event or circumstance is to cause, or to permit the holder or
holders of such Indebtedness in excess, in the aggregate, of $10,000,000 (or a
trustee or agent on behalf of such holder or holders) to cause any such
Indebtedness in excess, in the aggregate, of $10,000,000 to become due prior to
its stated maturity; or any such Indebtedness in excess, in the aggregate, of
$10,000,000 of Provider or any of its Subsidiaries shall be declared to be due
and payable, or shall be required to be prepaid (other than by a regularly
scheduled required prepayment or redemption, prior to the stated maturity
thereof).

 

“Genlyte
Judgment Default” means one or more judgments or decrees shall be entered
against Provider or any of its Subsidiaries involving a liability equal to or
more than $25,000,000 in the aggregate for all such judgments and decrees for
Provider and its Subsidiaries (excluding any judgment covered by insurance as
to which the carrier has adequate claims paying ability and has not reserved
its rights), and any such judgments or decrees shall not have been vacated,
discharged or stayed or bonded pending appeal within 30 days from the entry
thereof.

 

“GTG
Intangible” means GTG Intangible Holdings LLP, a Delaware limited liability
partnership.

 

“Guaranty
Obligations” shall mean as to any Person (without duplication) any
obligation of such Person guaranteeing any Indebtedness (“primary
Indebtedness”) of any other Person (the “primary obligor”) in any manner,
whether directly or indirectly, including without limitation, any obligation of
such Person, whether or not contingent, (a) to purchase any such primary Indebtedness
or any property constituting direct or indirect security therefor, (b) to
advance or supply funds (i) for the purchase or payment of any such primary
Indebtedness or (ii) to maintain working capital or equity capital of the
primary obligor or otherwise to maintain the net worth or solvency of the
primary obligor, (c) to purchase property, securities or services primarily for
the purpose of assuring the owner of any such primary Indebtedness, or (d)
otherwise to assure or hold harmless the owner of such primary Indebtedness
against loss in respect thereof, provided, 

 

I-13

 

however,
that the term Guaranty Obligation shall not include endorsements of instruments
for deposit or collection in the ordinary course of business.  The amount of any Guaranty Obligation shall
be deemed to be an amount equal to the stated or determinable amount of the
primary Indebtedness in respect of which such Guaranty Obligation is made or,
if no 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.

 

“Incremental Purchase” means a purchase of one
or more Purchaser Interests which increases the total outstanding Aggregate
Capital hereunder.

 

“Indebtedness”
of any Person shall mean without duplication:

 

(i)            all indebtedness of
such Person for borrowed money;

 

(ii)           all bonds, notes,
debentures and similar debt securities of such Person;

 

(iii)          the deferred purchase
price of capital assets or services which in accordance with GAAP would be
shown on the liability side of the balance sheet of such Person;

 

(iv)          the face amount of all
letters of credit issued for the account of such Person and, without
duplication, all drafts drawn thereunder;

 

(v)           all obligations,
contingent or otherwise, of such Person in respect of bankers’ acceptances;

 

(vi)          all Indebtedness of a
second Person secured by any Adverse Claim on any property owned by such first
Person, whether or not such Indebtedness has been assumed;

 

(vii)         all Capitalized Lease
Obligations of such Person;

 

(viii)        the present value,
determined on the basis of the implicit interest rate, of all basic rental
obligations under all Synthetic Leases of such Person;

 

(ix)           all net obligations of
such Person under Hedge Agreements;

 

(x)            the full outstanding
balance of trade receivables, notes or other instruments sold with full
recourse (and the portion thereof subject to potential recourse, if sold with
limited recourse), other than in any such case any thereof sold solely for
purposes of collection of delinquent accounts;

 

(xi)           the stated value, or
liquidation value if higher, of all Redeemable Stock of such Person; and

 

(xii)          all Guaranty Obligations
of such Person of any indebtedness or other obligation of the type described in
clauses (i) through (xi) above;

 

provided that (a)
neither trade payables nor other similar accrued expenses, in each case arising
in the ordinary course of business, nor obligations in respect of insurance
policies or 

 

I-14

 

performance or surety bonds which themselves
are not guarantees of Indebtedness (nor drafts, acceptances or similar
instruments evidencing the same nor obligations in respect of letters of credit
supporting the payment of the same) that are no more than forty-five days
delinquent, shall constitute Indebtedness; and (b) the Indebtedness of any
Person shall in any event include (without duplication) the Indebtedness of any
other entity (including any general partnership in which such Person is a
general partner) to the extent such Person is liable thereon as a result of
such Person’s ownership interest in or other relationship with such entity,
except to the extent the terms of such Indebtedness provide expressly that such
Person is not liable thereon.

 

“Independent Director” shall mean a member of
the Board of Directors of Seller who is not at such time, and has not been at
any time during the preceding five (5) years, (A) a director, officer, employee
or affiliate of Seller, the Servicer, any Originator, or any of their
respective Subsidiaries or Affiliates, or (B) the beneficial owner (at the time
of such individual’s appointment as an Independent Director or at any time
thereafter while serving as an Independent Director) of any of the outstanding
common shares of Seller, the Servicer, any Originator, or any of their
respective Subsidiaries or Affiliates, having general voting rights.

 

“Jupiter” has the meaning set forth in the
preamble to this Agreement.

 

“Jupiter
Costs” means for any Calculation Period with respect to any Purchaser
Interest of Jupiter not funded by it under a Funding Agreement, an amount equal
to the product of (x) the USD-LIBOR-BBA for such Calculation Period minus
0.01%, multiplied by (y) the Capital of such Purchaser Interest for each day
elapsed during such Calculation Period, annualized on a 360 day basis.

 

“LIBO Rate” means the rate per  annum
equal to (a) the applicable British Bankers’ Association Interest Settlement
Rate for deposits in U.S. dollars appearing on Reuters Screen FRBD as of 11:00
a.m. (London time) two Business Days prior to the first day of the relevant
Tranche Period, and having a maturity equal to such Tranche Period, provided that, (i) if Reuters Screen FRBD is
not available to the Agent for any reason, the applicable LIBO Rate for the
relevant Tranche Period shall instead be the applicable British Bankers’
Association Interest Settlement Rate for deposits in U.S. dollars as reported
by any other generally recognized financial information service as of 11:00
a.m. (London time) two Business Days prior to the first day of such Tranche
Period, and having a maturity equal to such Tranche Period, and (ii) if no such
British Bankers’ Association Interest Settlement Rate is available to the
Agent, the applicable LIBO Rate for the relevant Tranche Period shall instead
be the rate determined by the Agent to be the rate at which Bank One offers to
place deposits in U.S. dollars with first-class banks in the London interbank
market at approximately 11:00 a.m. (London time) two Business Days prior to the
first day of such Tranche Period, in the approximate amount to be funded at the
LIBO Rate and having a maturity equal to such Tranche Period, divided by (b)
one minus the maximum aggregate reserve requirement (including all basic,
supplemental, marginal or other reserves) which is imposed against the Agent in
respect of Eurocurrency liabilities, as defined in Regulation D of the Board of
Governors of the Federal Reserve System as in effect from time to time
(expressed as a decimal), applicable to such Tranche Period.  The LIBO Rate shall be rounded, if
necessary, to the next higher 1/16 of 1%.

 

I-15

 

“Lock-Box” means each locked postal box with
respect to which a bank who has executed a Collection Account Agreement has
been granted exclusive access for the purpose of retrieving and processing
payments made on the Receivables and which is listed on Exhibit IV.

 

“London
Banking Day” means, any day on which commercial banks are open for general
business (including dealings in foreign exchange and foreign currency deposits)
in the City of London.

 

“Loss
Horizon Factor” means, for any Fiscal Month, a fraction, the numerator of
which equals the aggregate original Outstanding Balance of all Receivables
originated during such Fiscal Month and the two immediately preceding Fiscal
Months, and the denominator of which equals the Net Eligible Receivables Balance
as of the last day of such Fiscal Month.

 

 “Loss Percentage” means at any time
the greater of (i) 12% and (ii) a percentage calculated in accordance with the
following formula:

 

LP = 2 x LHF x LR

 

where:

 

LP           =      the Loss Percentage;

LHF        =      the Loss Horizon Factor; and

LR           =      the highest three month
rolling average of the Loss Ratios occurring during the 12 immediately
preceding Fiscal Months.

 

“Loss Ratio”
means, for any Fiscal Month, a ratio (expressed as a percentage) equal to (i)
one-third of the aggregate Outstanding Balance of all Receivables which are
more than 90 days past the original invoice date therefor and less than 181
days past the original invoice date therefor as of the last day of such Fiscal
Month plus all Charged-Off Receivables which are less than or equal to
90 days past the original invoice date therefor as of the last day of such
Fiscal Month and which have been written off during such Fiscal Month, divided
by (ii) the aggregate original Outstanding Balance of all Receivables
originated during the fourth preceding Fiscal Month.

 

“Loss
Reserve” means, at any time, an amount equal to the Loss Percentage multiplied
by the Net Receivables Balance as of the close of business on such date.

 

“Material Adverse Effect” means a material
adverse effect on:

 

(i)            the business,
operations, property, prospects, assets, liabilities or condition (financial or
otherwise) of (A) the Seller Parties and their Subsidiaries, taken as a whole,
(B) an Originator and its Subsidiaries, taken as a whole, or (C) the Seller,

 

(ii)           the ability of any
Seller Party to perform its obligations under this Agreement any other
Transaction Document to which it is a party,

 

I-16

 

(iii)          the ability of (A) the
Seller Parties and their Subsidiaries, taken as a whole, (B) an Originator and
its Subsidiaries, taken as a whole, or (C) the Seller to pay their liabilities
and obligations when due,

 

(iv)          the legality, validity
or enforceability of this Agreement or any other Transaction Document,

 

(v)           any Purchaser’s
interest in the Receivables generally or in any significant portion of the
Receivables, the Related Security or the Collections with respect thereto, or

 

(vi)          the collectibility of
the Receivables generally or of any material portion of the Receivables.

 

“Material
Subsidiary” means, at any time, any Subsidiary of Provider (i) that has
assets at such time comprising three percent (3%) or more of the consolidated
assets of Provider, or (ii) whose operations in the current fiscal year are
expected to, or whose operations in the most recent fiscal year did (or would
have if such Person had been a Subsidiary for such entire fiscal year),
represent three percent (3%) or more of the consolidated earnings before
interest, taxes, depreciation and amortization of Provider for such fiscal
year; provided,  however, that notwithstanding the foregoing ,
the term “Material Subsidiary” shall include, without limitation, each Bank
Borrower, Genlyte Canadian Holdings, LLC, Genlyte Intangible, Inc., Shakespeare
Composite Structures LLC, GTG Intangible, Genlyte International Acquisitions
LP, Canlyte Inc., Ledalite Architectural Products LP, Lumec Holding Corp. and
Lumec Inc.

 

“Monthly Report” means a report, in
substantially the form of Exhibit X
hereto (appropriately completed), furnished by the Servicer to the Agent
pursuant to Section 8.5.

 

“Net Eligible Receivables Balance” means, at
any time, the aggregate Outstanding Balance of all Eligible Receivables at such
time reduced by the sum of (x) the Cash Discount Reserve at such time and (y)
the Rebate Reserve at such time.

 

“Net Receivables Balance” means, at any time,
the aggregate Net Eligible Receivables Balance at such time reduced by the
aggregate amount by which the Outstanding Balance of all Eligible Receivables
of each Obligor and its Affiliates exceeds the Concentration Limit for such
Obligor.

 

“Obligations” shall have the meaning set forth
in Section 2.1.

 

“Obligor” means a Person obligated to make
payments pursuant to a Contract.

 

“Operating
Lease” as applied to any Person means any lease of any property (whether
real, personal or mixed) by that Person as lessee which, in conformity with
GAAP, is not accounted for as a Capital Lease on the balance sheet of that
Person.

 

“Original Seller” means each Subsidiary of
Genlyte from time to time party to the Receivables Sale Agreement as a Seller
to Genlyte of the Receivables originated by such Person.

 

I-17

 

“Originator” means (i) Genlyte, in its
capacity as seller of Receivables to the Seller under the Receivables Sale
Agreement, and (ii) each Original Seller.

 

“Outstanding Balance” of any Receivable at any
time means the then outstanding principal balance thereof.

 

“Participant” has the meaning set forth in Section 12.2.

 

“Performance Undertaking” means that certain
Performance Undertaking, dated as of August 2, 2004 and attached hereto as
Schedule C, by Provider in favor of the Agent for the benefit of the
Purchasers, as the same may be amended, restated or otherwise modified from
time to time.

 

“Period End
Date” means for any Calculation Period, the 17th date of each
calendar month; provided, however if such day is not a Business
Day, the first following day that is a Business Day unless that day falls in the
next calendar month, in which case that date will be the first preceding day
that is a Business Day.

 

“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.

 

 “Potential
Amortization Event” means an event which, with the passage of time
or the giving of notice, or both, would constitute an Amortization Event.

 

“Prime Rate” means a rate per  annum
equal to the prime rate of interest announced from time to time by Bank One or
its parent (which is not necessarily the lowest rate charged to any customer),
changing when and as said prime rate changes.

 

“Proposed Reduction Date” has the meaning set
forth in Section 1.3.

 

“Pro Rata Share” means, for each Financial
Institution, a percentage equal to (i) the Commitment of such Financial
Institution, divided  by (ii) the aggregate amount of all
Commitments of all Financial Institutions hereunder.

 

“Provider”
has the meaning set forth in the preamble to this Agreement.

 

“Purchase Limit” means $100,000,000.

 

“Purchase Notice” has the meaning set forth in
Section 1.2.

 

“Purchase Price” means, with respect to any
Incremental Purchase of a Purchaser Interest, the amount paid to Seller for
such Purchaser Interest which shall not exceed the least of (i) the amount
requested by Seller in the applicable Purchase Notice, (ii) the unused
portion of the Purchase Limit on the applicable purchase date and (iii) the
excess, if any, of the Net Receivables Balance (less the Aggregate Reserves) on
the applicable purchase date over the aggregate outstanding amount of Aggregate
Capital determined as of the date of the most recent Monthly Report, taking
into account such proposed Incremental Purchase.

 

I-18

 

“Purchasers” means Jupiter and each Financial
Institution.

 

“Purchaser Interest” means, at any time, an
undivided percentage ownership interest (computed as set forth below)
associated with a designated amount of Capital, selected pursuant to the terms
and conditions hereof in (i) each Receivable arising prior to the time of the
most recent computation or recomputation of such undivided interest, (ii) all
Related Security with respect to each such Receivable, and (iii) all
Collections with respect to, and other proceeds of, each such Receivable.  Each such undivided percentage interest
shall equal:

 

	
  C

  	
   

  	
   

  
	
  NRB – AR

  	
   

  

 

where:

 

C             =      the Capital of such
Purchaser Interest.

AR          =      the Aggregate Reserves.

NRB        =      the Net Receivables Balance.

 

Such undivided
percentage ownership interest shall be initially computed on its date of
purchase.  Thereafter, until the
Amortization Date, each Purchaser Interest shall be automatically recomputed
(or deemed to be recomputed) on each day prior to the Amortization Date.  The variable percentage represented by any
Purchaser Interest as computed (or deemed recomputed) as of the close of the
business day immediately preceding the Amortization Date shall remain constant
at all times thereafter.

 

“Purchasing Financial Institution” has the
meaning set forth in Section 12.1(b).

 

“Rebate
Reserve” means:

 

(a)           at any time during the
Fiscal Months of April though October, the product of (i) 1.5 multiplied by
(ii) the average, for the immediately preceding twelve Fiscal Months, of the
aggregate Rebates that were provided (or in accordance with Disclosed Methods
should have been provided) by a Seller Party to an Obligor during each such
Fiscal Month, and

 

(b)           at any time during the
Fiscal Months of November through March, the sum of the aggregate Rebates
during each of the two Fiscal Months occurring over the immediately preceding
twelve Fiscal Months in which with the largest aggregate Rebates were provided
(or in accordance with Disclosed Methods should have been provided) by a Seller
Party to an Obligor.

 

“Rebates”
means any and all rebates, deductions and similar allowances and credits (other
than Cash Discounts) that were provided (or in accordance with Disclosed
Methods should have been provided) to an Obligor by any Seller Party, in the
form of credit, cash back or otherwise, in connection with one or more rebate
or other incentive programs of the Originators.

 

“Receivable” means all indebtedness and other
obligations owed to Seller or Originator (at the time it arises, and before
giving effect to any transfer or conveyance under the Receivables Sale
Agreement or hereunder) or in which Seller or any Originator has a security interest
or other interest, including, without limitation, any indebtedness, obligation
or interest 

 

I-19

 

constituting an account,
chattel paper, instrument or general intangible, arising in connection with the
sale of goods or the rendering of services by any Originator, and further
includes, without limitation, the obligation to pay any Finance Charges with
respect thereto.  Indebtedness and other
rights and obligations arising from any one transaction, including, without
limitation, indebtedness and other rights and obligations represented by an
individual invoice, shall constitute a Receivable separate from a Receivable
consisting of the indebtedness and other rights and obligations arising from
any other transaction; provided  further, that any indebtedness, rights or
obligations referred to in the immediately preceding sentence shall be a
Receivable regardless of whether the account debtor or Seller treats such
indebtedness, rights or obligations as a separate payment obligation.

 

“Receivables Sale Agreement” means that
certain Receivables Sale Agreement, dated as of August 2, 2004, among Genlyte,
each of the other Originators from time to time party thereto and Seller, as
the same may be amended, restated or otherwise modified from time to time.

 

“Records” means, with respect to any
Receivable, all Contracts and other documents, books, records and other
information (including, without limitation, computer programs, tapes, disks,
punch cards, data processing software and related property and rights) relating
to such Receivable, any Related Security therefor and the related Obligor.

 

“Redeemable
Stock” shall mean with respect to any Person any capital stock or similar
equity interests of such Person that (i) is by its terms subject to mandatory
redemption, in whole or in part, pursuant to a sinking fund, scheduled
redemption or similar provisions, at any time prior to the Bank Maturity Date;
or (ii) otherwise is required to be repurchased or retired on a scheduled date
or dates, upon the occurrence of any event or circumstance, or at the option of
the holder or holders thereof, or otherwise, at any time prior to the Bank
Maturity Date, other than any such redemption, repurchase or retirement
occasioned by a “change of control” or similar event.

 

“Reduction Notice” has the meaning set forth
in Section 1.3.

 

“Regulatory Change” has the meaning set forth
in Section 10.2(a).

 

“Reinvestment” has the meaning set forth in Section 2.2.

 

“Related Security” means, with respect to any
Receivable:

 

(i) all of
Seller’s or any applicable Originator’s interest in the inventory and goods
(including returned or repossessed inventory or goods), if any, the sale,
financing or lease of which by such Originator gave rise to such Receivable,
and all insurance contracts with respect thereto,

 

(ii) all other
security interests or liens and property subject thereto from time to time, if
any, purporting to secure payment of such Receivable, whether pursuant to the
Contract related to such Receivable or otherwise, together with all financing
statements and security agreements describing any collateral securing such
Receivable,

 

I-20

 

(iii) all
guaranties, letters of credit, insurance and other agreements or arrangements
of whatever character from time to time supporting or securing payment of such
Receivable whether pursuant to the Contract related to such Receivable or
otherwise,

 

(iv) all
service contracts and other contracts and agreements associated with such
Receivable,

 

(v) all
Records related to such Receivable,

 

(vi) all of
Seller’s right, title and interest in, to and under the Receivables Sale
Agreement in respect of such Receivable and any applicable Lock-Box, Collection
Account and/or any other account into which Collections on Receivables are or
may be deposited and all of Seller’s right, title and interest in, to and under
the Performance Undertaking, and

 

(vii) all
proceeds of any of the foregoing.

 

“Required Financial Institutions” means, at
any time, Financial Institutions with Commitments in excess of 66-2/3% of the
Purchase Limit.

 

“Required Notice Period” means two Business
Days.

 

“Restricted Junior Payment” means (i) any
dividend or other distribution, direct or indirect, on account of any shares of
any class of capital stock of Seller now or hereafter outstanding, except a
dividend payable solely in shares of that class of stock or in any junior class
of stock of Seller, (ii) any redemption, retirement, sinking fund or similar
payment, purchase or other acquisition for value, direct or indirect, of any
shares of any class of capital stock of Seller now or hereafter outstanding,
(iii) any payment or prepayment of principal of, premium, if any, or interest,
fees or other charges on or with respect to, and any redemption, purchase,
retirement, defeasance, sinking fund or similar payment and any claim for
rescission with respect to the Subordinated Loans (as defined in the
Receivables Sale Agreement), (iv) any payment made to redeem, purchase,
repurchase or retire, or to obtain the surrender of, any outstanding warrants,
options or other rights to acquire shares of any class of capital stock of
Seller now or hereafter outstanding, and (v) any payment of management fees by
Seller (except for reasonable management fees to the Originator or its
Affiliates in reimbursement of actual management services performed).

 

“Sales
Representative” means any Person who (i) sells, markets, advertises or
otherwise arranges for the sale of goods or services by any Originator in
return for a commission, fee or other similar form of payment, or (ii) is
identified (or in accordance with Disclosed Methods should be identified) in
the books and records of any Seller Party as being a sales representative.

 

“Scheduled
Commitment Termination Date” means August 1, 2005, as such date may be
extended from time to time pursuant to Section 2.8.

 

“Seller” has the meaning set forth in the
preamble to this Agreement.

 

I-21

 

“Seller Parties” means the Seller, the
Servicer, the Provider and each Originator.

 

“Servicer” means at any time the Person (which
may be the Agent) then authorized pursuant to Article
VIII to service, administer and collect Receivables.

 

“Servicing Fee” has the meaning set forth in Section 8.6.

 

“Settlement Date” means (A) each Period End
Date, in respect of each Purchaser Interest of Jupiter not funded by it under a
Funding Agreement, and (B) the last day of the relevant Tranche Period, in
respect of each Purchaser Interest of the Financial Institutions (or a
Purchaser Interest of Jupiter to the extent all or any portion thereof is
funded by it under a Funding Agreement).

 

“Settlement Period” means (A) in respect of
each Purchaser Interest of Jupiter (other than in the case of any such
Purchaser Interest or portion thereof funded by Jupiter under a Funding
Agreement), the immediately preceding Calculation Period, and (B) in respect of
each Purchaser Interest of the Financial Institutions (or a Purchaser Interest
of Jupiter to the extent all or any portion thereof is funded by it under a
Funding Agreement), the entire Tranche Period of such Purchaser Interest.

 

“Specified
Hedge Agreement” has the meaning set forth in the Bank Credit Agreement.

 

“Subsidiary” of a Person means (i) any
corporation more than 50% of the outstanding securities having ordinary voting
power of which shall at the time be owned or controlled, directly or
indirectly, by such Person or by one or more of its Subsidiaries or by such Person
and one or more of its Subsidiaries, or (ii) any partnership, association,
limited liability company, joint venture or similar business organization more
than 50% of the ownership interests having ordinary voting power of which shall
at the time be so owned or controlled. 
Unless otherwise expressly provided, all references herein to a
“Subsidiary” shall mean a Subsidiary of Seller.

 

“Synthetic
Lease” means any lease (i) which is accounted for by the lessee as an
Operating Lease, and (ii) under which the lessee is intended to be the “owner”
of the leased property for Federal income tax purposes.

 

“Terminating Financial Institution” has the
meaning set forth in Section 2.8.

 

“Terminating Tranche” has the meaning set
forth in Section 4.3(b).

 

“Termination Date” has the meaning set forth
in Section 2.2.

 

“Termination Percentage” has the meaning set
forth in Section 2.2.

 

“Testing
Period” means for any determination, a single period consisting of the four
consecutive fiscal quarters of Provider then last ended (whether or not such
quarters are all within the same fiscal year), except that if a
particular provision of this Agreement indicates that a Testing Period shall be
of a different specified duration, such Testing Period shall consist of the
particular fiscal quarter or quarters of Provider then last ended which are so
indicated in such provision.

 

I-22

 

“Thomas
Interests” means all of the direct and indirect equity interests of Thomas
Industries Inc. and certain of its Subsidiaries in Genlyte and GTG Intangible.

 

“Tranche Period” means, with respect to any
Purchaser Interest held by a Financial Institution:

 

(a)           if Yield for such
Purchaser Interest is calculated on the basis of the LIBO Rate, a period of one,
two, three or six calendar months, or such other period as may be mutually
agreeable to the Agent and Seller, commencing on a Business Day selected by
Seller or the Agent pursuant to this Agreement.  Such Tranche Period shall end on the day in the applicable
succeeding calendar month which corresponds numerically to the beginning day of
such Tranche Period, provided, however, that if there is no such
numerically corresponding day in such succeeding calendar month, such Tranche
Period shall end on the last Business Day of such succeeding calendar month; or

 

(b)           if Yield for such
Purchaser Interest is calculated on the basis of the Prime Rate, a period
commencing on a Business Day selected by Seller and agreed to by the Agent; provided
no such period shall exceed one month.

 

If any Tranche
Period would end on a day which is not a Business Day, such Tranche Period
shall end on the next succeeding Business Day, provided,
however, that in the case of Tranche Periods corresponding to the LIBO
Rate, if such next succeeding Business Day falls in a new month, such Tranche
Period shall end on the immediately preceding Business Day.  In the case of any Tranche Period for any
Purchaser Interest which commences before the Amortization Date and would
otherwise end on a date occurring after the Amortization Date, such Tranche
Period shall end on the Amortization Date. 
The duration of each Tranche Period which commences after the
Amortization Date shall be of such duration as selected by the Agent.

 

“Transaction Documents” means, collectively,
this Agreement, each Purchase Notice, the Receivables Sale Agreement, each
Collection Account Agreement, the Performance Undertaking, the Fee Letter, the
Subordinated Note (as defined in the Receivables Sale Agreement) and all other instruments,
documents and agreements executed and delivered in connection herewith.

 

“UCC” means the Uniform Commercial Code as
from time to time in effect in the specified jurisdiction.

 

“USD-LIBOR-BBA”
means, for any Calculation Period, the rate for deposits in U.S. Dollars for a
period having a maturity equal to such Calculation Period which appears on the
Telerate Page 3750 as of 11:00 a.m., London time, on the day that is two London
Banking Days preceding the first day of such Calculation Period. If such rate
does not appear on the Telerate Page 3750, the rate for that Calculation Period
will be determined as if USD-LIBOR-BBA equals the LIBO Rate.

 

“U.S.
Dollar” means the lawful currency of the United States of America.

 

I-23

 

“Yield” means for each respective Tranche
Period relating to Purchaser Interests of the Financial Institutions (or
Jupiter in the case of all or any portion of a Purchaser Interest funded by it
under a Funding Agreement), an amount equal to the product of the applicable
Discount Rate for each Purchaser Interest multiplied by the Capital of such
Purchaser Interest for each day elapsed during such Tranche Period, annualized
on a 360 day basis.

 

“Yield and Servicer Fee Reserve” means, on any
date, an amount equal to 1.5%  multiplied by the Outstanding Balance of
all Eligible Receivables as of the close of business of the Servicer on such
date.

 

All accounting
terms not specifically defined herein shall be construed in accordance with
GAAP.  All terms used in Article 9 of
the UCC in the State of Illinois, and not specifically defined herein, are used
herein as defined in such Article 9.

 

I-24

 

EXHIBIT II

 

FORM OF
PURCHASE NOTICE

 

[Date]

 

Bank One, NA (Main Office Chicago), as Agent

1 Bank One Plaza, 21st Floor

Asset-Backed Finance

Chicago, Illinois 60670-0596

 

Attention:              Jupiter Funding Manager

 

Re:  PURCHASE NOTICE

 

Ladies and Gentlemen:

 

Reference is
hereby made to the Receivables Purchase Agreement, dated as of August 2, 2004,
by and among Genlyte Receivables Corporation, (the “Seller”),
Genlyte Thomas Group LLC, as Servicer, the Financial Institutions party
thereto, Jupiter Securitization Corporation (“Jupiter”),
and Bank One, NA (Main Office Chicago), as Agent (the “Receivables Purchase Agreement”).  Capitalized terms used herein shall have the
meanings assigned to such terms in the Receivables Purchase Agreement.

 

The Agent is
hereby notified of the following Incremental Purchase:

 

	
  Purchase Price:

  	
  $

  
	
  Date of Purchase:

  	
   

  
	
  Requested Discount Rate:

  	
  [LIBO
  Rate]
  [Prime
  Rate]
  [USD-LIBOR-BBA
  rate]

  

 

Please credit
the Purchase Price in immediately available funds to our Facility Account [and
then wire-transfer the Purchase Price in immediately available funds on the
above-specified date of purchase to:

 

[Account
Name]

[Account
No.]

[Bank
Name & Address]

[ABA
#]

Reference:

Telephone advice to: [Name] @ tel. No. ( )

 

Please advise [Name]
at telephone no ( )
                
if Jupiter will not be making this purchase.

 

II-1

 

In connection
with the Incremental Purchase to be made on the above listed “Date of Purchase”
(the “Purchase Date”), the Seller
hereby certifies that the following statements are true on the date hereof, and
will be true on the Purchase Date (before and after giving effect to the
proposed Incremental Purchase):

 

(i)            the
representations and warranties of the Seller set forth in Section 5.1 of the
Receivables Purchase Agreement are true and correct on and as of the Purchase
Date as though made on and as of such date;

 

(ii)           no
event has occurred and is continuing, or would result from the proposed
Incremental Purchase, that will constitute an Amortization Event or a Potential
Amortization Event;

 

(iii)          the
Facility Termination Date has not occurred, the Aggregate Capital does not
exceed the Purchase Limit and the aggregate Purchaser Interests do not exceed
100%; and

 

(iv)          the
amount of Aggregate Capital is
$          after giving effect to
the Incremental Purchase to be made on the Purchase Date.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  GENLYTE
  RECEIVABLES

  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

II-2

 

EXHIBIT III

UCC LOCATION OF SELLER

 

PLACES OF
BUSINESS OF THE SELLER PARTIES;

LOCATIONS OF RECORDS;

FEDERAL EMPLOYER IDENTIFICATION NUMBER(S)

 

III-1

 

EXHIBIT IV

 

NAMES OF
COLLECTION BANKS; COLLECTION ACCOUNTS

 

	
  Lock-Box

  	
   

  	
  Related
  Collection Account

  
	
   

  	
   

  	
   

  

 

IV-1

 

EXHIBIT V

 

FORM OF
COMPLIANCE CERTIFICATE

 

To:          Bank One, NA (Main Office Chicago), as Agent

 

This
Compliance Certificate is furnished pursuant to that certain Receivables
Purchase Agreement dated as of August 2, 2004 among GENLYTE RECEIVABLES
CORPORATION (the “Seller”), GENLYTE
THOMAS GROUP LLC (the “Servicer”), the
Purchasers party thereto and Bank One, NA (Main Office Chicago), as agent for
such Purchasers (the “Agreement”).

 

THE
UNDERSIGNED HEREBY CERTIFIES THAT:

 

1.  I am the duly elected
                     
of Seller.

 

2.  I have reviewed the terms of the Agreement
and I have made, or have caused to be made under my supervision, a detailed
review of the transactions and conditions of Seller and its Subsidiaries during
the accounting period covered by the attached financial statements.

 

3.  The examinations described in paragraph 2
did not disclose, and I have no knowledge of, the existence of any condition or
event which constitutes an Amortization Event or Potential Amortization Event,
as each such term is defined under the Agreement, during or at the end of the
accounting period covered by the attached financial statements or as of the
date of this Certificate, except as set forth in paragraph 5 below.

 

4.  Schedule I attached hereto sets forth
financial data and computations evidencing the compliance with certain
covenants of the Agreement, all of which data and computations are true,
complete and correct.

 

5.  Described below are the exceptions, if any,
to paragraph 3 by listing, in detail, the nature of the condition or event, the
period during which it has existed and the action which Seller has taken, is
taking, or proposes to take with respect to each such condition or event:

 

 

 

 

The foregoing
certifications, together with the computations set forth in Schedule I hereto and the financial
statements delivered with this Certificate in support hereof, are made and
delivered this 
      
day of    ,            .

 

V-1

 

SCHEDULE I TO
COMPLIANCE CERTIFICATE

 

A.             Schedule of Compliance as of
          ,
     with Section     of the Agreement.  Unless otherwise defined herein, the terms
used in this Compliance Certificate have the meanings ascribed thereto in the
Agreement.

 

This schedule
relates to the Fiscal Months ended:

 

V-2

 

EXHIBIT VI

 

FORM OF
COLLECTION ACCOUNT AGREEMENT

 

[On letterhead of
Originator]

 

          ,

 

[Lock-Box
Bank/Concentration Bank/Depositary Bank]

 

Re:          Genlyte
Thomas Group LLC

 

Ladies and Gentlemen:

 

Reference is
hereby made to P.O. Box #  in [city,
state, zip code] (the “Lock-Box”) of
which you have exclusive control for the purpose of receiving mail and
processing payments therefrom pursuant to that certain [name of lock-box agreement)
between you and the undersigned (the “Company”)
dated 
              
(the “Agreement”).  You hereby confirm your agreement to perform
the services described therein.  Among
the services you have agreed to perform therein, is to endorse all checks and
other evidences of payment, and credit such payments to the Company’s checking
account no.  maintained with you in the
name of the Company (the “Lock-Box Account”).

 

The Company
hereby informs you that pursuant to that certain Receivables Sale Agreement,
dated as of August 2, 2004 between the Company and Genlyte Receivables
Corporation (the “Seller”), the Company
has transferred all of its right, title and interest in and to, and exclusive
ownership and control of, the Lock-Box and the Lock-Box Account to Seller.  The Company and Seller hereby request that
the name of the Lock-Box Account be changed to “Genlyte Receivables
Corporation, Lock-Box Account.”

 

The Company
and Seller hereby irrevocably instruct you, and you hereby agree, that upon
receiving notice from Bank One, NA (Main Office Chicago) (“Bank One”) in the form attached hereto as
Annex A: (i) the name of the Lock-Box Account will be changed to Bank One for
itself and as agent (or any designee of Bank One) and Bank One will have
exclusive ownership of and access to the Lock-Box and the Lock-Box Account, and
neither the Company, Seller, nor any of their respective affiliates will have
any control of the Lock-Box or the Lock-Box Account or any access thereto, (ii)
you will either continue to send the funds from the Lock-Box to the Lock-Box
Account, or will redirect the funds as Bank One may otherwise request, (iii)
you will transfer monies on deposit in the Lock-Box Account, at any time, as
directed by Bank One, (iv) all services to be performed by you under the
Agreement will be performed on behalf of Bank One, and (v) all correspondence
or other mail which you have agreed to send to the Company or Seller will be
sent to Bank One at the following address:

 

VI-1

 

Bank One, NA (Main Office Chicago)

Suite       , 21st Floor

1 Bank One Plaza

Chicago, Illinois 60670

Attention:  Credit Manager, Asset Backed

Securities Division

 

Moreover, upon
such notice, Bank One for itself and as agent will have all rights and remedies
given to the Company (and Seller, as the Company’s assignee) under the
Agreement.  Seller agrees, however, to
continue to pay all fees and other assessments due thereunder at any time.

 

You hereby
acknowledge that monies deposited in the Lock-Box Account or any other account
established with you by Bank One for the purpose of receiving funds from the
Lock-Box are subject to the liens of Bank One for itself and as agent, and will
not be subject to deduction, set-off, banker’s lien or any other right you or
any other party may have against the Company or Seller except that you may
debit the Lock-Box Account for any items deposited therein that are returned or
otherwise not collected and for all charges, fees, commissions and expenses
incurred by you in providing services hereunder, all in accordance with your
customary practices for the charge back of returned items and expenses.

 

THIS LETTER
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER WILL BE
GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF ILLINOIS.  This letter
agreement may be executed in any number of counterparts and all of such
counterparts taken together will be deemed to constitute one and the same
instrument.

 

This letter
agreement contains the entire agreement between the parties, and may not be
altered, modified, terminated or amended in any respect, nor may any right,
power or privilege of any party hereunder be waived or released or discharged,
except upon execution by all parties hereto of a written instrument so
providing.  In the event that any
provision in this letter agreement is in conflict with, or inconsistent with,
any provision of the Agreement, this letter agreement will exclusively govern
and control.  Each party agrees to take
all actions reasonably requested by any other party to carry out the purposes
of this letter agreement or to preserve and protect the rights of each party
hereunder.

 

Please
indicate your agreement to the terms of this letter agreement by signing in the
space provided below.  This letter
agreement will become effective immediately upon execution of a counterpart of
this letter agreement by all parties hereto.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  GENLYTE THOMAS
  GROUP LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

VI-2

 

	
   

  	
  GENLYTE
  RECEIVABLES

  CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Acknowledged
  and agreed to this     day of
        

  	
   

  
	
   

  	
   

  
	
  [COLLECTION BANK]

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
  BANK ONE, NA
  (MAIN OFFICE CHICAGO), as

  Agent

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
								

 

VI-3

 

ANNEX A

 

FORM OF NOTICE

 

[On letterhead of
Bank One]

 

               ,

 

[Collection
Bank/Depositary Bank/Concentration Bank]

 

Re:          Genlyte Thomas Group LLC

 

Ladies and Gentlemen:

 

We hereby
notify you that we are exercising our rights pursuant to that certain letter
agreement among Genlyte Thomas Group LLC, Genlyte Receivables Corporation, you
and us, to have the name of, and to have exclusive ownership and control of,
account number           
(the “Lock-Box Account”) maintained
with you, transferred to us.  [Lock-Box
Account will henceforth be a zero-balance account, and funds deposited in
the Lock-Box Account should be sent at the end of each day to
              .]  You have further agreed to perform all other
services you are performing under that certain agreement dated between you and
Genlyte Thomas Group LLC on our behalf.

 

We appreciate
your cooperation in this matter.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  BANK ONE, NA
  (MAIN OFFICE

  CHICAGO)

  
	
   

  	
  (for itself
  and as agent)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

VI-4

 

EXHIBIT VII

 

FORM OF
ASSIGNMENT AGREEMENT

 

THIS
ASSIGNMENT AGREEMENT (this “Assignment Agreement”)
is entered into as of the     day of
            ,
    , by and between
                     
(“Assignor”) and
                  
(“Assignee”).

 

PRELIMINARY
STATEMENTS

 

A.            This
Assignment Agreement is being executed and delivered in accordance with Section
12.1(b) of that certain Receivables Purchase Agreement dated as of
August 2, 2004 by and among Genlyte Receivables Corporation, as Seller,
Genlyte Thomas Group LLC, as Servicer, Jupiter Securitization Corporation, Bank
One, NA (Main Office Chicago), as Agent, and the Financial Institutions party
thereto (as amended, modified or restated from time to time, the “Purchase
Agreement”).  Capitalized terms used and
not otherwise defined herein are used with the meanings set forth or incorporated
by reference in the Purchase Agreement.

 

B.            Assignor
is a Financial Institution party to the Purchase Agreement, and Assignee wishes
to become a Financial Institution thereunder; and

 

C.            Assignor
is selling and assigning to Assignee an undivided
            % (the
“Transferred Percentage”) interest in all of Assignor’s rights and obligations
under the Purchase Agreement and the Transaction Documents, including, without
limitation, Assignor’s Commitment and (if applicable) the Capital of Assignor’s
Purchaser Interests as set forth herein.

 

AGREEMENT

 

The parties
hereto hereby agree as follows:

 

1.             The
sale, transfer and assignment effected by this Assignment Agreement shall
become effective (the “Effective Date”) two (2) Business Days (or such other
date selected by the Agent in its sole discretion) following the date on which
a notice substantially in the form of Schedule II to this Assignment Agreement
(“Effective Notice”) is delivered by the Agent to Jupiter, Assignor and
Assignee.  From and after the Effective
Date, Assignee shall be a Financial Institution party to the Purchase Agreement
for all purposes thereof as if Assignee were an original party thereto and
Assignee agrees to be bound by all of the terms and provisions contained
therein.

 

2.             If
Assignor has no outstanding Capital under the Purchase Agreement, on the
Effective Date, Assignor shall be deemed to have hereby transferred and
assigned to Assignee, without recourse, representation or warranty (except as
provided in paragraph 6 below), and the Assignee shall be deemed to have hereby
irrevocably taken, received and assumed from Assignor, the Transferred
Percentage of Assignor’s Commitment and all rights and obligations associated
therewith under the terms of the Purchase Agreement, including, 

 

VII-1

 

without limitation, the Transferred
Percentage of Assignor’s future funding obligations under Section 4.1 of the
Purchase Agreement.

 

3.             If
Assignor has any outstanding Capital under the Purchase Agreement, at or before
12:00 noon, local time of Assignor, on the Effective Date Assignee shall pay to
Assignor, in immediately available funds, an amount equal to the sum of (i) the
Transferred Percentage of the outstanding Capital of Assignor’s Purchaser
Interests (such amount, being hereinafter referred to as the “Assignee’s
Capital”); (ii) all accrued but unpaid (whether or not then due) Yield
attributable to Assignee’s Capital; and (iii) accruing but unpaid fees and
other costs and expenses payable in respect of Assignee’s Capital for the
period commencing upon each date such unpaid amounts commence accruing, to and
including the Effective Date (the “Assignee’s Acquisition Cost”); whereupon,
Assignor shall be deemed to have sold, transferred and assigned to Assignee,
without recourse, representation or warranty (except as provided in paragraph 6
below), and Assignee shall be deemed to have hereby irrevocably taken, received
and assumed from Assignor, the Transferred Percentage of Assignor’s Commitment
and the Capital of Assignor’s Purchaser Interests (if applicable) and all
related rights and obligations under the Purchase Agreement and the Transaction
Documents, including, without limitation, the Transferred Percentage of
Assignor’s future funding obligations under Section 4.1 of the Purchase
Agreement.

 

4.             Concurrently
with the execution and delivery hereof, Assignor will provide to Assignee
copies of all documents requested by Assignee which were delivered to Assignor
pursuant to the Purchase Agreement.

 

5.             Each
of the parties to this Assignment Agreement agrees that at any time and from
time to time upon the written request of any other party, it will execute and
deliver such further documents and do such further acts and things as such other
party may reasonably request in order to effect the purposes of this Assignment
Agreement.

 

6.             By
executing and delivering this Assignment Agreement, Assignor and Assignee
confirm to and agree with each other, the Agent and the Financial Institutions
as follows:  (a) other than the
representation and warranty that it has not created any Adverse Claim upon any
interest being transferred hereunder, Assignor makes no representation or
warranty and assumes no responsibility with respect to any statements, warranties
or representations made by any other Person in or in connection with the
Purchase Agreement or the Transaction Documents or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of Assignee, the
Purchase Agreement or any other instrument or document furnished pursuant
thereto or the perfection, priority, condition, value or sufficiency of any
collateral; (b) Assignor makes no representation or warranty and assumes no
responsibility with respect to the financial condition of the Seller, any
Obligor, any Seller Affiliate or the performance or observance by the Seller,
any Obligor, any Seller Affiliate of any of their respective obligations under
the Transaction Documents or any other instrument or document furnished pursuant
thereto or in connection therewith; (c) Assignee confirms that it has received
a copy of the Purchase Agreement and copies of such other Transaction
Documents, and other documents and information as it has requested and deemed
appropriate to make its own credit analysis and decision to enter into this
Assignment Agreement; (d) Assignee will, independently and without reliance
upon the Agent, Jupiter, the Seller or any other Financial Institution or
Purchaser and based on such documents 

 

VII-2

 

and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking
action under the Purchase Agreement and the Transaction Documents; (e) Assignee
appoints and authorizes the Agent to take such action as agent on its behalf
and to exercise such powers under the Transaction Documents as are delegated to
the Agent by the terms thereof, together with such powers as are reasonably
incidental thereto; and (f) Assignee agrees that it will perform in accordance
with their terms all of the obligations which, by the terms of the Purchase
Agreement and the other Transaction Documents, are required to be performed by
it as a Financial Institution or, when applicable, as a Purchaser.

 

7.             Each
party hereto represents and warrants to and agrees with the Agent that it is
aware of and will comply with the provisions of the Purchase Agreement,
including, without limitation, Sections 4.1 and 13.6 thereof.

 

8.             Schedule
I hereto sets forth the revised Commitment of Assignor and the Commitment of
Assignee, as well as administrative information with respect to Assignee.

 

9.             THIS
ASSIGNMENT AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF ILLINOIS.

 

10. 
Assignee hereby covenants and agrees that, prior to the date which is
one year and one day after the payment in full of all senior indebtedness for
borrowed money of Jupiter, it will not institute against, or join any other
Person in instituting against, Jupiter any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings or other similar proceeding
under the laws of the United States or any state of the United States.

 

IN WITNESS
WHEREOF, the parties hereto have caused this Assignment Agreement to be
executed by their respective duly authorized officers of the date hereof.

 

	
   

  	
  [ASSIGNOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [ASSIGNEE]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  
					

 

VII-3

 

SCHEDULE I TO
ASSIGNMENT AGREEMENT

 

 

LIST OF
LENDING OFFICES, ADDRESSES

FOR NOTICES AND COMMITMENT AMOUNTS

 

Date: 
              ,
    

 

Transferred Percentage:           %

 

	
   

  	
   

  	
  A-1

  	
   

  	
  A-2

  	
   

  	
  B-1

  	
   

  	
  B-2

  
	
  Assignor

  	
   

  	
  Commitment
  (prior to giving effect to the Assignment Agreement)

  	
   

  	
  Commitment
  (after giving effect to the Assignment Agreement)

  	
   

  	
  OutstandingCapital
  (if any)

  	
   

  	
  Ratable
  Share of Outstanding Capital

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  A-2

  	
   

  	
  B-1

  	
   

  	
  B-2

  
	
  Assignee

  	
   

  	
   

  	
   

  	
  Commitment
  (after giving effect to the Assignment Agreement)

  	
   

  	
  Outstanding
  Capital (if any)

  	
   

  	
  Ratable
  Share of Outstanding Capital

  

 

Address for Notices

 

Attention:

Phone:

Fax:

 

VII-4

 

SCHEDULE II TO ASSIGNMENT AGREEMENT

 

EFFECTIVE
NOTICE

 

TO:                                     ,
Assignor

 

 

 

TO:                                     ,
Assignee

 

 

 

The
undersigned, as Agent under the Receivables Purchase Agreement dated as of
August 2, 2004 by and among Genlyte Receivables Corporation, as Seller, Genlyte
Thomas Group LLC, as Servicer, Jupiter Securitization Corporation, Bank One, NA
(Main Office Chicago), as Agent, and the Financial Institutions party thereto,
hereby acknowledges receipt of executed counterparts of a completed Assignment
Agreement dated as of                  ,
     between
                  ,
as Assignor, and
                  ,
as Assignee.  Terms defined in such
Assignment Agreement are used herein as therein defined.

 

1.             Pursuant to such
Assignment Agreement, you are advised that the Effective Date will be
              ,
    .

 

2.             Jupiter hereby
consents to the Assignment Agreement as required by Section 12.1(b) of the
Receivables Purchase Agreement.

 

VII-5

 

[3.            Pursuant to such Assignment Agreement, the
Assignee is required to pay $            
to Assignor at or before 12:00 noon (local time of Assignor) on the Effective
Date in immediately available funds.]

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  BANK ONE, NA
  (MAIN OFFICE

  CHICAGO),

  
	
   

  	
  individually
  and as Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JUPITER SECURITIZATION
  CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  
						

 

VII-6

 

EXHIBIT VIII

 

CREDIT AND
COLLECTION POLICY

 

See Exhibit V
to Receivables Sale Agreement

 

VIII-1

 

EXHIBIT IX

 

FORM OF
INVOICE

 

See Attached

 

IX-1

 

EXHIBIT X

 

FORM OF
MONTHLY REPORT

 

X-1

 

SCHEDULE A

 

COMMITMENTS OF
FINANCIAL INSTITUTIONS

 

	
  Financial Institution

  	
   

  	
  Commitment

  	
   

  
	
  Bank One, NA (Main Office Chicago)

  	
   

  	
  $

  	
  100,000,000

  	
   

  
					

 

A-1

 

SCHEDULE B

 

DOCUMENTS TO
BE DELIVERED TO THE AGENT

ON OR PRIOR TO THE INITIAL PURCHASE

 

PART I:  Documents to be Delivered in Connection with the Receivables Sale
Agreement

 

1.             Executed copies of
the Receivables Sale Agreement, duly executed by the parties thereto.

 

2.             Copy of the
Resolutions of the Board of Directors of each Originator certified by its
Secretary, authorizing such Originator’s execution, delivery and performance of
the Receivables Sale Agreement and the other documents to be delivered by it
thereunder.

 

3.             Organizational
Documents of each Originator certified by the Secretary of State of the
jurisdiction of incorporation of such Originator on or within thirty (30) days
prior to the initial Purchase (as defined in the Receivables Sale Agreement).

 

4.             Good Standing
Certificate for each Originator issued by the Secretaries of State of its state
of incorporation and each jurisdiction where it has material operations, each
of which is listed below:

 

1.  Genlyte: Delaware, Kentucky,
California, Connecticut, Massachusetts , New Jersey, Illinois, Texas,
Pennsylvania, North Carolina, Mississippi, Tennessee and Georgia.

 

2. 
Shakespeare Composite Structures, LLC: Delaware, South Carolina and
Florida.

 

3. New Oxford Aluminum LLC: Delaware and Pennsylvania.

 

5.             A
certificate of the Secretary of each Originator certifying: (i) the names and
signatures of the officers authorized on its behalf to execute the Receivables
Sale Agreement and any other documents to be delivered by it thereunder and
(ii) a copy of such Originator’s organizational documents.

 

6.             Pre-filing
(a) UCC lien searches against each Originator at the Secretary of Sate in (i)
the state of such Originator’s formation, (ii) the state of its headquarters
and/or principal place of business and (iii) the state in which such Originator
has manufacturing and/or warehouse facilities and (b) local judgment, state and
federal tax and ERISA liens searches against such Originator in the state of
such Originator’s headquarters and/or principal place of business.

 

7.             Time stamped receipt
copies of proper financing statements, duly filed under the UCC on or before
the date of the initial Purchase (as defined in the Receivables Sale Agreement)
in all jurisdictions as may be necessary or, in the opinion of Agent,
desirable, under the UCC of all appropriate jurisdictions or any comparable law
in order to perfect the ownership interests contemplated by the Receivables
Sale Agreement.

 

B-1

 

8.             Time stamped receipt
copies of proper UCC termination statements, if any, necessary to release all
security interests and other rights of any Person in the Receivables, Contracts
or Related Security previously granted by any Originator.

 

9.             Executed Collection
Account Agreements for each Lock-Box and Collection Account.

 

10.           A favorable opinion of
legal counsel for each Originator reasonably acceptable to the Agent which
addresses the following matters and such other matters as the Agent may
reasonably request:

 

•              Originator is a
corporation duly organized, validly existing, and in good standing under the
laws of its state of organization.

 

•              Originator has all
requisite authority to conduct its business in each jurisdiction where failure
to be so qualified would have a material adverse effect on such Originator’s
business.

 

•              The execution and
delivery by such Originator of the Receivables Sale Agreement and each other
Transaction Document to which it is a party and its performance of its
obligations thereunder have been duly authorized by all necessary corporate
action and proceedings on the part of such Originator and will not:

 

(a)           require any action by or in respect of, or
filing with, any governmental body, agency or official (other than the filing
of UCC financing statements);

 

(b)           contravene, or constitute a default under,
any provision of applicable law or regulation or of its articles or certificate
of     incorporation or bylaws or of
any agreement, judgment, injunction, order, decree or other instrument binding
upon such Originator; or

 

(c)           result in the creation or imposition of any
Adverse Claim on assets of such Originator or any of its Subsidiaries (except
as contemplated by the Receivables Sale Agreement).

 

•              The Receivables Sale
Agreement and each other Transaction Document to which it is a party has been
duly executed and delivered by such Originator and constitutes the legal,
valid, and binding obligation of such Originator enforceable in accordance with
its terms, except to the extent the enforcement thereof may be limited by
bankruptcy, insolvency or similar laws affecting the enforcement of creditors’
rights generally and subject also to the availability of equitable remedies if
equitable remedies are sought.

 

•              The provisions of
the Receivables Sale Agreement are effective to create a valid security
interest in favor of Seller in all Receivables and upon the filing of financing
statements, Seller shall acquire a first priority, perfected security interest
in such Receivables.

 

B-2

 

•              To the best of the
opinion giver’s knowledge, there is no action, suit or other proceeding against
such Originator or any Affiliate of such Originator, which would materially
adversely affect the business or financial condition of such Originator and its
Affiliates taken as a whole or which would materially adversely affect the
ability of such Originator to perform its obligations under the Receivables
Sale Agreement.

 

11.           A “true sale” opinion
and “substantive consolidation” opinion of counsel for the Originators with
respect to the transactions contemplated by the Receivables Sale Agreement.

 

12.           A Compliance
Certificate.

 

13.           Executed copies of (i)
all consents from and authorizations by any Persons and (ii) all waivers and
amendments to existing credit facilities, that are necessary in connection with
the Receivables Sale Agreement.

 

14.           Executed copies of the
Subscription Agreement (as defined in the Receivables Sale Agreement).

 

15.           Executed copies of the
Subordinated Note (as defined in the Receivables Sale Agreement) by Seller in
favor of each Originator.

 

16.           A direction letter
executed by each Originator authorizing Seller (and its assignees) and
directing warehousemen to allow Seller (and its assignees) to inspect and make
copies from such Originator’s books and records maintained at off-site data
processing or storage facilities.

 

PART II:  Documents to Be
Delivered in Connection with the Agreement

 

17.           Executed
copies of the Agreement, duly executed by the parties thereto.

 

18.           Copy of
the Resolutions of the Board of Directors of each Seller Party and Provider
certified by its Secretary authorizing such Person’s execution, delivery and
performance of this Agreement and the other documents to be delivered by it
hereunder.

 

19.           Organizational
Documents of each Seller Party certified by the Secretary of State of its
jurisdiction of organization on or within thirty (30) days prior to the initial
Incremental Purchase.

 

20.           Good
Standing Certificate for each Seller Party issued by the Secretaries of State
of its state of organization and each jurisdiction where it has material
operations, each of which is listed below:

 

1.             Seller:  Delaware

 

B-3

 

2.             Servicer:  Delaware, Kentucky, California,
Connecticut, Massachusetts , New Jersey, Illinois, Texas, Pennsylvania, North
Carolina, Mississippi, Tennessee and Georgia.

 

3.             Provider:  Delaware.

 

21.           A
certificate of the Secretary of each Seller Party certifying (i) the names and
signatures of the officers authorized on its behalf to execute this Agreement
and any other documents to be delivered by it hereunder and (ii) a copy of such
Person’s organizational documents.

 

22.           Pre-filing
state and federal tax lien, ERISA lien, judgment lien and UCC lien searches
against the Seller in the State of Delaware.

 

23.           Time
stamped receipt copies of proper financing statements, duly filed under the UCC
on or before the date of the initial Incremental Purchase in all jurisdictions
as may be necessary or, in the opinion of the Agent, desirable, under the UCC
of all appropriate jurisdictions or any comparable law in order to perfect the
ownership interests contemplated by this Agreement.

 

24.           Time
stamped receipt copies of proper UCC termination statements, if any, necessary
to release all security interests and other rights of any Person in the
Receivables, Contracts or Related Security previously granted by Seller.

 

25.           Executed
copies of Collection Account Agreements for each Lock-Box and Collection
Account.

 

26.           A
favorable opinion of legal counsel for the Seller Parties reasonably acceptable
to the Agent which addresses the following matters and such other matters as
the Agent may reasonably request:

 

•              Each
Seller Party is duly organized, validly existing, and in good standing under
the laws of its state of organization.

 

•              Each
Seller Party has all requisite authority to conduct its business in each
jurisdiction where failure to be so qualified would have a material adverse
effect on such Person’s business.

 

•              The
execution and delivery by each Seller Party of this Agreement and each other
Transaction Document to which it is a party and its performance of its
obligations thereunder have been duly authorized by all necessary corporate
action and proceedings on the part of such Person and will not:

 

(a)           require any action by or in respect of, or
filing with, any governmental body, agency or official (other than the filing
of UCC financing statements);

 

B-4

 

(b)           contravene, or constitute a default under,
any provision of applicable law or regulation or of its articles or certificate
of incorporation or bylaws or of any agreement, judgment, injunction, order,
decree or other instrument binding upon such Person; or

 

(c)           result in the creation or imposition of any
Adverse Claim on assets of such Person or any of its Subsidiaries (except as
contemplated by this Agreement).

 

•              This Agreement and
each other Transaction Document to which such Person is a party has been duly
executed and delivered by such Person and constitutes the legal, valid, and
binding obligation of such Person, enforceable in accordance with its terms,
except to the extent the enforcement thereof may be limited by bankruptcy,
insolvency or similar laws affecting the enforcement of creditors’ rights
generally and subject also to the availability of equitable remedies if
equitable remedies are sought.

 

•              The provisions of
the Agreement are effective to create a valid security interest in favor of the
Agent for the benefit of the Purchasers in all Receivables and Related
Security, and upon the filing of financing statements, the Agent for the
benefit of the Purchasers shall acquire a first priority, perfected security
interest in such Receivables and Related Security.

 

•              To the best of the
opinion giver’s knowledge, there is no action, suit or other proceeding against
any Seller Party or any of their respective Affiliates, which would materially
adversely affect the business or financial condition of such Person and its
Affiliates taken as a whole or which would materially adversely affect the
ability of such Person to perform its obligations under any Transaction
Document to which it is a party.

 

27.           A Compliance
Certificate.

 

28.           The Fee Letter.

 

29.           A Monthly Report as at
June 30, 2004.

 

30.           Executed copies of (i)
all consents from and authorizations by any Persons and (ii) all waivers and
amendments to existing credit facilities, that are necessary in connection with
this Agreement.

 

31.           A direction letter
executed by Seller and the Servicer authorizing the Agent and Jupiter, and
directing warehousemen to allow the Agent and Jupiter to inspect and make
copies from Seller’s books and records maintained at off-site data processing
or storage facilities.

 

B-5

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