Document:

Exhibit
10.1

 

Published CUSIP Number:

 

 

 

 

$200,000,000

 

SECOND AMENDED AND RESTATED

CREDIT AGREEMENT

 

among

 

SI INTERNATIONAL, INC.,

as Parent Borrower,

 

THE DOMESTIC SUBSIDIARIES OF THE PARENT BORROWER

FROM TIME TO TIME PARTIES HERETO,

as Subsidiary Borrowers,

 

THE LENDERS PARTY HERETO,

 

WACHOVIA BANK, NATIONAL ASSOCIATION,

as Administrative Agent,

 

BANK OF AMERICA, N.A.,

as Syndication Agent

 

and

 

SUNTRUST BANK,

as Documentation Agent

 

Dated as of February 13, 2008

 

 

 

WACHOVIA CAPITAL MARKETS, LLC

and

BANC OF AMERICA SECURITIES LLC,

as Co-Lead Arrangers

 

WACHOVIA CAPITAL MARKETS, LLC,

as Sole Book Runner

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
  ARTICLE I DEFINITIONS

  	
  1

  
	
  Section 1.1

  	
  Defined Terms

  	
  1

  
	
  Section 1.2

  	
  Other Definitional Provisions

  	
  30

  
	
  Section 1.3

  	
  Accounting Terms

  	
  30

  
	
  Section 1.4

  	
  Time References

  	
  31

  
	
  Section 1.5

  	
  Execution of Documents

  	
  31

  
	
   

  	
   

  	
   

  
	
  ARTICLE II THE LOANS; AMOUNT AND TERMS

  	
  31

  
	
  Section 2.1

  	
  Revolving Loans

  	
  31

  
	
  Section 2.2

  	
  Term Loan Facility

  	
  33

  
	
  Section 2.3

  	
  Letter of Credit Subfacility

  	
  34

  
	
  Section 2.4

  	
  Swingline Loan Subfacility

  	
  37

  
	
  Section 2.5

  	
  Incremental Facility

  	
  39

  
	
  Section 2.6

  	
  Fees

  	
  41

  
	
  Section 2.7

  	
  Commitment Reductions

  	
  41

  
	
  Section 2.8

  	
  Prepayments

  	
  42

  
	
  Section 2.9

  	
  Default Rate and Payment Dates

  	
  44

  
	
  Section 2.10

  	
  Conversion and Continuation Options

  	
  44

  
	
  Section 2.11

  	
  Computation of Interest and Fees

  	
  45

  
	
  Section 2.12

  	
  Pro Rata Treatment and Payments

  	
  46

  
	
  Section 2.13

  	
  Non-Receipt of Funds by the Administrative Agent

  	
  48

  
	
  Section 2.14

  	
  Inability to Determine Interest Rate

  	
  50

  
	
  Section 2.15

  	
  Yield Protection

  	
  50

  
	
  Section 2.16

  	
  Indemnity

  	
  52

  
	
  Section 2.17

  	
  Taxes

  	
  52

  
	
  Section 2.18

  	
  Indemnification; Nature of Issuing Lender’s Duties

  	
  54

  
	
  Section 2.19

  	
  Illegality

  	
  55

  
	
  Section 2.20

  	
  Joint and Several Liability of the Borrowers

  	
  56

  
	
  Section 2.21

  	
  Replacement of Lenders

  	
  57

  
	
   

  	
   

  	
   

  
	
  ARTICLE III REPRESENTATIONS AND WARRANTIES

  	
  58

  
	
  Section 3.1

  	
  Financial Condition

  	
  58

  
	
  Section 3.2

  	
  No Change

  	
  59

  
	
  Section 3.3

  	
  Corporate Existence; Compliance with Law

  	
  59

  
	
  Section 3.4

  	
  Corporate Power; Authorization; Enforceable
  Obligations

  	
  60

  
	
  Section 3.5

  	
  Compliance with Laws; No Conflict; No Default

  	
  60

  
	
  Section 3.6

  	
  No Material Litigation

  	
  61

  
	
  Section 3.7

  	
  Investment Company Act

  	
  61

  
	
  Section 3.8

  	
  Margin Regulations

  	
  61

  
	
  Section 3.9

  	
  ERISA

  	
  61

  
	
  Section 3.10

  	
  Environmental Matters

  	
  62

  
	
  Section 3.11

  	
  Purpose of Loans

  	
  63

  
	
  Section 3.12

  	
  Subsidiaries

  	
  63

  
	
  Section 3.13

  	
  Ownership; Insurance

  	
  63

  
				

 

 

i

 

 

	
  Section 3.14

  	
  Indebtedness

  	
  64

  
	
  Section 3.15

  	
  Taxes

  	
  64

  
	
  Section 3.16

  	
  Intellectual Property

  	
  64

  
	
  Section 3.17

  	
  Solvency

  	
  64

  
	
  Section 3.18

  	
  Investments  

  	
  65

  
	
  Section 3.19

  	
  Location of Collateral  

  	
  65

  
	
  Section 3.20

  	
  No Burdensome Restrictions

  	
  65

  
	
  Section 3.21

  	
  Brokers’ Fees

  	
  65

  
	
  Section 3.22

  	
  Labor Matters

  	
  65

  
	
  Section 3.23

  	
  Security Documents

  	
  66

  
	
  Section 3.24

  	
  Accuracy and Completeness of Information

  	
  66

  
	
  Section 3.25

  	
  Absence of Certain Changes or Events

  	
  66

  
	
  Section 3.26

  	
  Material Contracts

  	
  66

  
	
  Section 3.27

  	
  Directors; Capitalization

  	
  67

  
	
  Section 3.28

  	
  Classification of Senior Indebtedness

  	
  67

  
	
  Section 3.29

  	
  Foreign Assets Control Regulations, Etc.

  	
  67

  
	
  Section 3.30

  	
  Compliance with OFAC Rules and Regulations

  	
  67

  
	
  Section 3.31

  	
  Compliance with FCPA

  	
  68

  
	
  Section 3.32

  	
  Regulation H

  	
  68

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV CONDITIONS PRECEDENT TO INITIAL CLOSING

  	
  68

  
	
  Section 4.1

  	
  Conditions to Closing and Initial Extensions of
  Credit

  	
  68

  
	
  Section 4.2

  	
  Conditions to All Extensions of Credit

  	
  74

  
	
   

  	
   

  	
   

  
	
  ARTICLE V AFFIRMATIVE COVENANTS

  	
  76

  
	
  Section 5.1

  	
  Financial Statements

  	
  76

  
	
  Section 5.2

  	
  Certificates; Other Information

  	
  77

  
	
  Section 5.3

  	
  Payment of Taxes

  	
  79

  
	
  Section 5.4

  	
  Conduct of Business and Maintenance of Existence

  	
  79

  
	
  Section 5.5

  	
  Maintenance of Property; Insurance

  	
  80

  
	
  Section 5.6

  	
  Inspection of Property; Books and Records;
  Discussions

  	
  80

  
	
  Section 5.7

  	
  Notices

  	
  81

  
	
  Section 5.8

  	
  Environmental Laws

  	
  82

  
	
  Section 5.9

  	
  Financial Covenants

  	
  83

  
	
  Section 5.10

  	
  Additional Subsidiary Borrowers

  	
  83

  
	
  Section 5.11

  	
  Compliance with Law

  	
  83

  
	
  Section 5.12

  	
  Pledged Assets

  	
  84

  
	
  Section 5.13

  	
  Covenants Regarding Intellectual Property

  	
  84

  
	
  Section 5.14

  	
  Deposit and Securities Accounts

  	
  86

  
	
  Section 5.15

  	
  Federal Assignment of Claims Act

  	
  86

  
	
  Section 5.16

  	
  Further Assurances

  	
  87

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI NEGATIVE COVENANTS

  	
  88

  
	
  Section 6.1

  	
  Indebtedness

  	
  88

  
	
  Section 6.2

  	
  Liens

  	
  89

  
	
  Section 6.3

  	
  Nature of Business

  	
  90

  
	
  Section 6.4

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

  	
  90

  
	
  Section 6.5

  	
  Advances, Investments and Loans

  	
  91

  

 

 

ii

 

 

	
  Section 6.6

  	
  Transactions with Affiliates

  	
  91

  
	
  Section 6.7

  	
  Ownership of Subsidiaries; Restrictions

  	
  91

  
	
  Section 6.8

  	
  Fiscal Year; Accounting Policies; Organizational
  Documents; Material Contracts

  	
  92

  
	
  Section 6.9

  	
  Limitation on Restricted Actions

  	
  92

  
	
  Section 6.10

  	
  Restricted Payments

  	
  93

  
	
  Section 6.11

  	
  Sale Leasebacks

  	
  93

  
	
  Section 6.12

  	
  No Further Negative Pledges

  	
  94

  
	
  Section 6.13

  	
  Amendment of Subordinated Indebtedness

  	
  94

  
	
  Section 6.14

  	
  Management Fees

  	
  94

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII EVENTS OF DEFAULT

  	
  94

  
	
  Section 7.1

  	
  Events of Default

  	
  94

  
	
  Section 7.2

  	
  Acceleration; Remedies

  	
  98

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII THE AGENT

  	
  98

  
	
  Section 8.1

  	
  Appointment and Authority

  	
  98

  
	
  Section 8.2

  	
  Nature of Duties

  	
  99

  
	
  Section 8.3

  	
  Exculpatory Provisions

  	
  99

  
	
  Section 8.4

  	
  Reliance by Administrative Agent

  	
  100

  
	
  Section 8.5

  	
  Notice of Default

  	
  100

  
	
  Section 8.6

  	
  Non-Reliance on Administrative Agent and Other
  Lenders

  	
  101

  
	
  Section 8.7

  	
  Indemnification

  	
  101

  
	
  Section 8.8

  	
  Administrative Agent in Its Individual Capacity

  	
  101

  
	
  Section 8.9

  	
  Successor Administrative Agent

  	
  102

  
	
  Section 8.10

  	
  Collateral and Guaranty Matters

  	
  103

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX MISCELLANEOUS

  	
  103

  
	
  Section 9.1

  	
  Amendments, Waivers and Release of Collateral

  	
  103

  
	
  Section 9.2

  	
  Notices

  	
  106

  
	
  Section 9.3

  	
  No Waiver; Cumulative Remedies

  	
  108

  
	
  Section 9.4

  	
  Survival of Representations and Warranties

  	
  108

  
	
  Section 9.5

  	
  Payment of Expenses and Taxes

  	
  108

  
	
  Section 9.6

  	
  Successors and Assigns; Participations; Purchasing
  Lenders

  	
  110

  
	
  Section 9.7

  	
  Right of Set-Off; Sharing of Payments

  	
  113

  
	
  Section 9.8

  	
  Table of Contents and Section Headings

  	
  114

  
	
  Section 9.9

  	
  Counterparts; Integration; Effectiveness; Electronic
  Execution

  	
  114

  
	
  Section 9.10

  	
  Severability

  	
  114

  
	
  Section 9.11

  	
  Integration

  	
  115

  
	
  Section 9.12

  	
  Governing Law

  	
  115

  
	
  Section 9.13

  	
  Consent to Jurisdiction and Service of Process

  	
  115

  
	
  Section 9.14

  	
  Confidentiality

  	
  115

  
	
  Section 9.15

  	
  Acknowledgments

  	
  116

  
	
  Section 9.16

  	
  Waivers of Jury Trial; Waiver of Consequential
  Damages

  	
  117

  
	
  Section 9.17

  	
  Patriot Act Notice

  	
  117

  
	
  Section 9.18

  	
  Resolution of Drafting Ambiguities

  	
  117

  
	
  Section 9.19

  	
  Continuing Agreement

  	
  118

  
	
  Section 9.20

  	
  Lender Consent

  	
  118

  

 

iii

 

	
  Schedules

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule 1.1-2

  	
   

  	
  Permitted Liens

  
	
  Schedule 1.1-4

  	
   

  	
  Existing Letters of
  Credit

  
	
  Schedule 3.9

  	
   

  	
  ERISA

  
	
  Schedule 3.10

  	
   

  	
  Environmental Matters

  
	
  Schedule 3.12

  	
   

  	
  Subsidiaries

  
	
  Schedule 3.13

  	
   

  	
  Insurance

  
	
  Schedule 3.16

  	
   

  	
  Intellectual Property

  
	
  Schedule 3.19(a)

  	
   

  	
  Location of Real
  Property

  
	
  Schedule 3.19(b)

  	
   

  	
  Location of Collateral

  
	
  Schedule 3.19(c)

  	
   

  	
  Chief Executive Offices

  
	
  Schedule 3.22

  	
   

  	
  Labor Matters

  
	
  Schedule 3.25

  	
   

  	
  Certain Changes or
  Events

  
	
  Schedule 3.26

  	
   

  	
  Material Contracts

  
	
  Schedule 3.27

  	
   

  	
  Parent Borrower’s Board
  of Directors and Equity Capitalization

  
	
  Schedule 4.1-2

  	
   

  	
  Mortgaged Properties

  
	
  Schedule 5.14

  	
   

  	
  Deposit and Securities
  Accounts

  
	
  Schedule 6.1

  	
   

  	
  Indebtedness

  
	
   

  	
   

  	
   

  
	
  Exhibits

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit 1.1-1

  	
   

  	
  Form of Account
  Designation Notice

  
	
  Exhibit 2.1(b)(i)

  	
   

  	
  Form of Notice of
  Borrowing

  
	
  Exhibit 2.1(e)

  	
   

  	
  Form of Revolving
  Note

  
	
  Exhibit 2.2

  	
   

  	
  Form of Term Note

  
	
  Exhibit 2.4

  	
   

  	
  Form of Swingline
  Note

  
	
  Exhibit 2.10

  	
   

  	
  Form of Notice of
  Conversion/Continuation

  
	
  Exhibit 4.1-1

  	
   

  	
  Form of
  Secretary’s Certificate

  
	
  Exhibit 4.1-2

  	
   

  	
  Form of Lender
  Consent

  
	
  Exhibit 4.1-3

  	
   

  	
  Form of Solvency
  Certificate

  
	
  Exhibit 4.1-4

  	
   

  	
  Form of Covenant
  Compliance Certificate

  
	
  Exhibit 4.1-5

  	
   

  	
  Form of Patriot
  Act Certificate

  
	
  Exhibit 5.10

  	
   

  	
  Form of Joinder
  Agreement

  
	
  Exhibit 9.6

  	
   

  	
  Form of Assignment
  and Assumption

  

 

 

iv

 

 

SECOND
AMENDED AND RESTATED CREDIT AGREEMENT, dated as of February 13, 2008, among SI INTERNATIONAL, INC., a Delaware corporation, (the “Parent
Borrower”), those Domestic Subsidiaries of the Parent Borrower identified
as a “Subsidiary Borrower” on the signature pages hereto and such other
Domestic Subsidiaries of the Borrowers as may from time to time become a party
hereto (individually a “Subsidiary Borrower” and collectively the “Subsidiary
Borrowers” and together with the Parent Borrower, each individually, a “Borrower”
and collectively the “Borrowers”), the Lenders from time to time
party  hereto and WACHOVIA
BANK, NATIONAL ASSOCIATION, a national banking association, as
administrative agent for the Lenders hereunder (in such capacity, the “Administrative
Agent”).

 

 

W  I  T  N  E
S  S  E  T  H:

 

WHEREAS,
the Borrowers and the existing Lenders are parties to that certain Amended and
Restated Credit Agreement, dated February 9, 2005 (as amended,
supplemented or otherwise modified from time to time prior to the date hereof,
the “Existing Credit Agreement”); and

 

WHEREAS,
the Borrowers desire to amend the Existing
Credit Agreement as set forth herein and to restate the Existing Credit
Agreement in its entirety to read as follows; and

 

WHEREAS,
the Borrowers have requested that the Lenders make loans and other financial
accommodations to the Borrowers in an aggregate amount of up to $200,000,000,
as more particularly described herein; and

 

WHEREAS,
the Lenders have agreed to make such loans and other financial accommodations
to the Borrowers on the terms and conditions contained herein.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged by the parties hereto, such parties hereby agree
as follows:

 

 

ARTICLE I

 

DEFINITIONS

 

Section 1.1             Defined Terms.

 

As used in this
Agreement, terms defined in the first paragraph to this Agreement have the
meanings therein indicated, and the following terms have the following
meanings:

 

                “ABR Default Rate” shall
mean, as of any date of determination, the Alternate
Base Rate plus the Applicable Percentage for Alternate Base Rate Loans in
effect on such date plus 2%.

 

 

 

“Account
Designation Notice” shall mean the Account Designation Notice dated the
Closing Date from the Parent Borrower to the Administrative Agent substantially
in the form attached hereto as Exhibit 1.1-1.

 

“Additional
Borrower” shall mean each Person that becomes a Subsidiary Borrower by
execution of a Joinder Agreement in accordance with Section 5.10.

 

                “Additional Loan” shall
have the meaning set forth in Section 2.5.

 

                “Additional Term Loan”
shall have the meaning set forth in Section 2.5.

 

“Administrative
Agent” or “Agent” shall have the meaning set forth in the first
paragraph of this Agreement and any successors in such capacity.

 

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

 

“Affiliate”
shall mean, with respect to a specified Person, another Person that directly,
or indirectly through one or more intermediaries, Controls or is Controlled by
or is under common Control with the Person specified.

 

“Agreement”
or “Credit Agreement” shall mean this Credit Agreement, as amended,
modified or supplemented from time to time in accordance with its terms.

 

“Alternate Base
Rate” shall mean, for any day, a rate per annum equal to the greater of (a) the
Prime Rate in effect on such day and (b) the Federal Funds Effective Rate
in effect on such day plus 1/2 of 1%. 
For purposes hereof: “Prime Rate” shall mean, at any time, the
rate of interest per annum publicly announced or otherwise identified from time
to time by Wachovia at its principal office in Charlotte, North Carolina as its
prime rate.  Each change in the Prime
Rate shall be effective as of the opening of business on the day such change in
the Prime Rate occurs.  The parties
hereto acknowledge that the rate announced publicly by Wachovia as its Prime
Rate is an index or base rate and shall not necessarily be its lowest or best
rate charged to its customers or other banks; and “Federal Funds Effective
Rate” shall mean, for any day, 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 on the next succeeding Business
Day by the Federal Reserve Bank of New York, or, if such rate is not so
published on the next succeeding Business Day, the average of the quotations
for the day of such transactions received by the Administrative Agent from
three federal funds brokers of recognized standing selected by it.  If for any reason the Administrative Agent
shall have determined (which determination shall be conclusive in the absence
of manifest error) that it is unable to ascertain the Federal Funds Effective
Rate, for any reason, including the inability or failure of the Administrative
Agent to obtain sufficient quotations in accordance with the definition
thereof, the Alternate Base Rate shall be determined based on the Prime Rate,
until the circumstances giving rise to such inability no longer exist.  Any change in the Alternate Base Rate due to
a change in the Prime Rate or the Federal Funds Effective Rate shall be
effective on the opening of business on the date of such change.

 

 

2

 

“Alternate Base
Rate Loans” shall mean Loans that bear interest at an interest rate based
on the Alternate Base Rate.

 

                “Applicable Percentage”
shall mean, for any day, the rate per annum set forth below opposite the
applicable level then in effect (based on the Leverage Ratio), it being
understood that the Applicable Percentage for (a) Revolving Loans that are
Alternate Base Rate Loans shall be the percentage set forth under the column “Base
Rate Margin”, (b) Revolving Loans that are LIBOR Rate Loans shall be the
percentage set forth under the column “LIBOR Margin & L/C Fee”, (c) the
Letter of Credit Fee shall be the percentage set forth under the column “LIBOR
Margin & L/C Fee”, (d) the Commitment Fee shall be the percentage
set forth under the column “Commitment Fee”, (e) Term Loans that are
Alternate Base Rate Loans shall be the percentage set forth under the column “Base
Rate Margin” and (f) Term Loans that are LIBOR Rate Loans shall be the
percentage set forth under the column “LIBOR Margin & L/C Fee”:

 

	
  Level

  	
   

  	
  Leverage Ratio

  	
   

  	
  Base Rate Margin

  	
   

  	
  LIBOR Margin & L/C Fee

  	
   

  	
  Commitment Fee

  	
   

  
	
  I

  	
   

  	
  >
  3.00 to 1.0

  	
   

  	
  0.50

  	
  %

  	
  1.50

  	
  %

  	
  0.300

  	
  %

  
	
  II

  	
   

  	
  >
  2.00 to 1.0 but £ 3.00 to 1.0

  	
   

  	
  0.25

  	
  %

  	
  1.25

  	
  %

  	
  0.250

  	
  %

  
	
  III

  	
   

  	
  > 1.00 to 1.0 but £ 2.00 to 1.0

  	
   

  	
  0.00

  	
  %

  	
  1.00

  	
  %

  	
  0.225

  	
  %

  
	
  IV

  	
   

  	
  £
  1.00 to 1.0

  	
   

  	
  0.00

  	
  %

  	
  0.875

  	
  %

  	
  0.200

  	
  %

  

 

The Applicable
Percentage shall, in each case, be determined and adjusted quarterly on the
date five (5) Business Days after the date on which the Administrative
Agent has received from the Parent Borrower the quarterly financial information
and certifications required to be delivered to the Administrative Agent and the
Lenders in accordance with the provisions of Sections 5.1(a) and (b) and
5.2(b) (each an “Interest Determination Date”).  Such Applicable Percentage shall be effective
from such Interest Determination Date until the next Interest Determination
Date.  If the Parent Borrower shall fail
to provide the financial information and certifications in accordance with the
provisions of Sections 5.1(a) and (b) and 5.2(b), the Applicable
Percentage shall, on the date five (5) Business Days after the date by
which the Parent Borrower was so required to provide such financial information
and certifications to the Administrative Agent and the Lenders, be based on
Level I until such time as such information and certifications or corrected
information or corrected certificates are provided, whereupon the Level shall
be determined by the then current Leverage Ratio.  Notwithstanding the foregoing, the initial
Applicable Percentages shall be set at no lower than Level II until the
financial information and certificates required to be delivered pursuant to Section 5.1
and 5.2 for the first two (2) full fiscal quarters to occur following the
Closing Date have been delivered to the Administrative Agent;  provided that if  the quarterly
financial information as of the most recent Interest Determination Date would
result in a higher Applicable Percentage, such higher Applicable Percentage
shall apply.  In the event that any
financial statement or certification delivered pursuant to Section 5.1 is
shown to be inaccurate (regardless of whether this Agreement or the Commitments
are in effect when such inaccuracy is discovered), and such inaccuracy, if corrected,
would have led to the application of a higher Applicable Percentage for any
period (an “Applicable Period”) than the Applicable Percentage applied
for such Applicable Period, then the Borrower shall immediately (i) deliver
to the Administrative Agent a corrected compliance certificate for such
Applicable Period, (ii) determine the Applicable Percentage for 

 

 

3

 

such Applicable
Period based upon the corrected compliance certificate, and (iii) immediately
pay to the Administrative Agent the accrued additional interest owing as a
result of such increased Applicable Percentage for such Applicable Period,
which payment shall be promptly applied by the Administrative Agent in
accordance with Section 2.12.  It is
acknowledged and agreed that nothing contained herein shall limit the rights of
the Administrative Agent and the Lenders under the Credit Documents.

 

“Approved Bank”
shall have the meaning set forth in the definition of “Cash Equivalents.”

 

“Approved Fund”
shall mean any Fund that is administered, managed or underwritten by (a) a Lender, (b) an Affiliate of a
Lender or (c) an entity or an Affiliate of an entity that administers or
manages a Lender.

 

                “Arrangers” shall mean
Wachovia Capital Markets, LLC and Banc of America Securities LLC, in their
capacity as co-lead arrangers, together with their successors and assigns.

 

“Asset Disposition”
shall mean the disposition of any or all of the assets (including, without
limitation, the Capital Stock of a Subsidiary or any ownership interest in a
joint venture) of any Borrower or any Subsidiary whether by sale, lease,
transfer or otherwise.  The term “Asset
Disposition” shall not include any disposition pursuant to Section 6.4(a)(i),
(ii), (v) or (vii) hereof, or any Equity Issuance.

 

“Assignment and
Assumption” shall mean an assignment and assumption entered into by a
Lender and an Eligible Assignee (with the consent of any party whose consent is
required by Section 9.6), and accepted by the Administrative Agent, in
substantially the form of Exhibit 9.6 or any other form approved by
the Administrative Agent.

 

“Bank
Product” shall mean any of the following products, services or facilities
extended to any Borrower or any Subsidiary by any Bank Product Provider, in
each case, in the ordinary course of business: (a) Cash Management
Services; (b) products under any Hedging Agreement that is not entered into for speculative
purposes; and (c) commercial credit card, purchase card and merchant card
services; provided, however, that for any of the foregoing to be
included as “Borrowers’ Obligations” for purposes of a distribution under Section 2.12,
the applicable Bank Product Provider must have previously provided written
notice to the Administrative Agent of (i) the existence of such Bank
Product, (ii) the maximum dollar amount (if reasonably capable of being
determined) of obligations arising thereunder (the “Bank Product Amount”)
and (iii) the methodology to be used by such parties in determining the
Bank Product Debt owing from time to time. 
The Bank Product Amount may be changed from time to time upon written
notice to the Administrative Agent by the Bank Product Provider.  Any Bank Product established at the time any
Event of Default exists shall not be included as “Borrowers’ Obligations” for
purposes of a distribution under Section 2.12.

 

“Bank Product Amount”
shall have the meaning set forth in the definition of Bank Product.

 

 

4

 

“Bank
Product Debt” shall mean the Indebtedness and other obligations of any
Borrower or Subsidiary relating to Bank Products.

 

“Bank
Product Provider” shall mean any Person that provides Bank Products to a
Borrower or any of its Subsidiaries to the extent such Person is (a) the
Administrative Agent or a Lender (or an Affiliate of the Administrative Agent or a
Lender) or (b) any other Person (i) that was the Administrative
Agent or a Lender (or
an Affiliate of the Administrative Agent or a Lender) at the time
such Person provided such Bank Products or (ii) with respect to any such
Bank Product that was in existence prior to the Closing Date, that was the
Administrative Agent or a Lender (or an Affiliate of the Administrative Agent or a
Lender) as of the Closing Date, but, in the case of clause (b), in each case
has ceased to be the Administrative Agent or a Lender  (or an Affiliate of the Administrative
Agent or a Lender) under this Agreement.

 

“Bankruptcy Code”
shall mean the Bankruptcy Code in Title 11 of the United States Code, as
amended, modified, succeeded or replaced from time to time.

 

“Borrower” or “Borrowers”
shall have the meanings set forth in the first paragraph of this Agreement.

 

“Borrowers’
Obligations” shall mean, without duplication, (a) all of the
obligations, indebtedness and liabilities of the Borrowers to the Lenders
(including the Issuing Lender) and the Administrative Agent, whenever arising,
under this Agreement, the Notes or any of the other Credit Documents including
principal, interest, fees, reimbursements and indemnification obligations and
other amounts (including, but not limited to, any interest accruing after the
occurrence of a filing of a petition of bankruptcy under the Bankruptcy Code
with respect to any Borrower, regardless of whether such interest is an allowed
claim under the Bankruptcy Code) and (b) for purposes of Section 2.20(b),
the Security Documents and all provisions under the other Credit Documents
relating to the Collateral, the sharing thereof and/or payments from proceeds
of the Collateral, all Bank Product Debt.

 

“Borrowing Date”
shall mean, in respect of any Loan, the date such Loan is made.

 

“Business” shall
have the meaning set forth in Section 3.10(b).

 

“Business Day”
shall mean any day other than a Saturday, Sunday or other day on which commercial
banks in Charlotte, North Carolina or New York, New York are authorized or
required by law to close; provided, however, that when used in
connection with a rate determination, borrowing or payment in respect of a
LIBOR Rate Loan, the term “Business Day” shall also exclude any day on which
banks in London, England are not open for dealings in Dollar deposits in the
London interbank market.

 

“Capital Lease”
shall mean any lease of property, real or personal, the obligations with
respect to which are required to be capitalized on a balance sheet of the
lessee in accordance with GAAP.

 

“Capital Lease
Obligations” shall mean the capitalized lease obligations relating to a
Capital Lease determined in accordance with GAAP.

 

 

 

5

 

“Capital Stock”
shall mean (a) in the case of a corporation, capital stock, (b) in
the case of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of capital stock,
(c) in the case of a partnership, partnership interests (whether general
or limited), (d) in the case of a limited liability company, membership
interests and (e) any other interest or participation that confers on a
Person the right to receive a share of the profits and losses of, or
distributions of assets of, the issuing Person.

 

“Cash Equivalents”
shall mean (a) 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
twelve months from the date of acquisition (“Government Obligations”), (b) Dollar
denominated (or foreign currency fully hedged to the Dollar) time deposits,
certificates of deposit, Eurodollar time deposits and Eurodollar certificates
of deposit of (i) any domestic commercial bank of recognized standing
having capital and surplus in excess of $250,000,000 or (ii) 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 being an “Approved Bank”), in each case with maturities
of not more than 364 days from the date of acquisition, (c) commercial
paper and variable or fixed rate notes issued by any Approved Bank (or by the
parent company thereof) or any variable rate notes issued by, or guaranteed by,
any domestic corporation rated A-1 (or the equivalent thereof) or better by
S&P or P-1 (or the equivalent thereof) or better by Moody’s and maturing
within six months of the date of acquisition, (d) repurchase agreements
with a bank or trust company (including a Lender) or a recognized securities
dealer having capital and surplus in excess of $500,000,000 for direct
obligations issued by or fully guaranteed by the United States of America, (e) obligations
of any state of the United States or any political subdivision thereof for the
payment of the principal and redemption price of and interest on which there
shall have been irrevocably deposited Government Obligations maturing as to
principal and interest at times and in amounts sufficient to provide such
payment, and (f) auction preferred stock rated in the highest short-term
credit rating category by S&P or Moody’s.

 

“Cash
Management Services” shall mean any services provided from time to time to
any Borrower or Subsidiary in connection with operating, collections, payroll,
trust, or other depository or disbursement accounts, including automatic
clearinghouse, controlled disbursement, depository, electronic funds transfer,
information reporting, lockbox, stop payment, overdraft and/or wire transfer
services.

 

“Change in Law”
shall mean the occurrence, after the date of this Agreement, of any of the
following:  (a) the adoption or
taking effect of any law, rule, regulation or treaty or (b) any change in
any law, rule, regulation or treaty or in the administration, interpretation or
application thereof by any Governmental Authority.

 

                “Change of Control” shall mean the occurrence
of any of the following events:  (a) any
“person” or “group” (within the meaning of Sections 13(d) and 14(d)(2) of
the Securities Exchange Act of 1934) becomes the “beneficial owner” (as defined
in Rule l3d-3 under the Securities Exchange Act of 1934) of more than 40%
of then outstanding Voting Stock of the 

 

 

6

 

Parent Borrower,
measured by voting power rather than the number of shares; or (b) Continuing
Directors shall cease for any reason to constitute a majority of the members of
the board of directors of the Parent Borrower then in office.

 

“Closing Date”
shall mean the date of this Agreement.

 

“Code” shall mean
the Internal Revenue Code of 1986, as amended from time to time.

 

“Collateral” shall
mean a collective reference to the collateral that is identified in, and at any
time will be covered by, the Security Documents and any other property or
assets of a Borrower, whether tangible or intangible and whether real or
personal, that may from time to time secure the Borrowers’ Obligations; provided
that there shall be excluded from the Collateral (a) any account,
instrument, chattel paper or other obligation or property of any kind due from,
owed by, or belonging to, a Sanctioned Person or Sanctioned Entity or (b) any
lease in which the lessee is a Sanctioned Person or Sanctioned Entity.

 

“Commitment” shall
mean the Revolving Commitment, the LOC Commitment, the Swingline Commitment,
the Term Loan Commitment or a commitment from a Lender to provide all or a
portion of an Additional Loan, individually or collectively, as appropriate.

 

                “Commitment Fee” shall have the meaning set
forth in Section 2.6(a).

 

                “Commitment Percentage”
shall mean the Revolving Commitment Percentage and/or the Term Loan Commitment
Percentage, as appropriate.

 

“Commitment Period”
shall mean the period from, and including, the Closing Date to, but not
including, the Revolving Commitment Termination Date.

 

“Commonly Controlled Entity” shall mean an
entity, whether or not incorporated, which is under common control with any
Borrower within the meaning of Section 4001(b)(1) of ERISA or is part
of a group which includes any Borrower and which is treated as a single
employer under Section 414(b) or 414(c) of the Code or, solely
for purposes of Section 412 of the Code to the extent required by such
section, Section 414(m) or 414(o) of the Code.

 

“Consolidated Capital
Expenditures” shall mean, for any period without duplication, all capital
expenditures of the Parent Borrower and its
Subsidiaries on a consolidated basis for such period, including without
limitation Capital Lease Obligations, as determined in accordance with
GAAP.  The term “Consolidated Capital
Expenditures” shall not include (a) capital expenditures assumed in
connection with Permitted Acquisitions or (b) capital expenditures in
respect of the reinvestment of proceeds derived from Recovery Events received
by the Parent Borrower and its Subsidiaries
to the extent that such reinvestment is permitted under the Credit Documents.

 

“Consolidated EBITDA” shall mean, for any period, without duplication, the sum of (a) Consolidated
Net Income for such period, plus (b) an amount that, in the
determination of Consolidated Net Income for such period, has been deducted for
(i) Consolidated Interest Expense, (ii) total federal, state, local
and foreign income, value added and similar taxes and 

 

 

7

 

(iii) depreciation,
amortization expense and other non-cash charges (except to the extent such
non-cash charges are reserves for future cash charges), plus (c) Permitted
Acquisition EBITDA for such period, minus (d) non-cash charges for
such period to the extent such non-cash charges increased Consolidated Net
Income, all as determined in accordance with GAAP.

 

“Consolidated Interest
Expense” shall mean, for any period without duplication, all interest
expense of the Parent Borrower and its
Subsidiaries on a consolidated basis (including, without limitation, the
interest component under Capital Leases, but excluding any amortization of fees
paid to the Lenders in connection with this Agreement), as determined in
accordance with GAAP.

 

“Consolidated Net
Income” shall mean, for any period without duplication, net income
(excluding extraordinary items) after taxes for such period of the Parent
Borrower and its Subsidiaries on a
consolidated basis, as determined in accordance with GAAP.

 

“Continuing Directors”
shall mean during any period of 24 consecutive months commencing after the
Closing Date, individuals who at the beginning of such 24 month period were
directors of the Parent Borrower (together with any new director whose election
by the Parent Borrower’s board of directors or whose nomination for election by
the Parent Borrower’s shareholders was approved by a vote of at least a
majority of the directors then still in office who either were directors at the
beginning of such period or whose election or nomination for election was
previously so approved).

 

“Contractual
Obligation” shall mean, as to any Person, any provision of any security
issued by such Person or of any contract, agreement, instrument or undertaking
to which such Person is a party or by which it or any of its property is bound.

 

“Control” shall
mean the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of a Person, whether through the
ability to exercise voting power, by contract or otherwise.  “Controlling” and “Controlled”
have meanings correlative thereto.

 

“Copyright
Licenses” shall mean any agreement, whether written or oral, providing for
the grant by or to a Person of any right under any Copyright, including,
without limitation, any thereof referred to in Schedule 3.16.

 

                “Copyrights” shall mean
all copyrights (other than copyrights of de minimus value) of the Parent
Borrower and its Subsidiaries in all Works, now existing or hereafter created
or acquired, all registrations and recordings thereof, and all applications in
connection therewith, whether in the United States Copyright Office or in any
similar office or agency of the United States, any state thereof or any other
country or any political subdivision thereof, or otherwise, including, without
limitation, any thereof referred to in Schedule 3.16 and all renewals
thereof.

 

“Credit Documents”
shall mean this Agreement, each of the Notes, any Joinder Agreement, the
Letters of Credit and any other LOC Documents, any Assignment and Assumption,
the Security Documents and all other agreements, documents, certificates and 

 

 

8

 

instruments delivered to
the Administrative Agent or any Lender by any Borrower in connection herewith
or therewith (other than any agreement, document, certificate or instrument
related to a Bank Product).

 

“Debt Issuance”
shall mean the issuance of any Indebtedness for borrowed money by any Borrower
or any of its Subsidiaries (excluding, for purposes hereof, any Indebtedness of
any Borrower or any of its Subsidiaries permitted to be incurred pursuant to Section 6.1
hereof).

 

“Default” shall
mean any of the events specified in Section 7.1, whether or not any
requirement for the giving of notice or the lapse of time, or both, or any
other condition, has been satisfied.

 

“Defaulting Lender”
shall mean, at any time, any Lender that, at such time (a) has failed to make a Loan required pursuant to the
terms of this Agreement, including the funding of a Participation Interest in
accordance with the terms hereof and such default remains uncured, (b) has failed to pay to the
Administrative Agent or any Lender when due an amount owed by such Lender
pursuant to the terms of this Agreement, or (c) has been deemed insolvent
or has become subject to a bankruptcy or insolvency proceeding or to a
receiver, trustee or similar official.

 

“Departing Lenders”
shall mean those lenders that are parties to the Existing Credit Agreement, but
are not parties to this Agreement as of the Closing Date.

 

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

 

“Domestic Lending
Office” shall mean, initially, the office of each Lender designated as such
Lender’s Domestic Lending Office shown in such Lender’s Administrative
Questionnaire; and thereafter, such other office of such Lender as such Lender
may from time to time specify to the Administrative Agent and the Parent
Borrower as the office of such Lender at which Alternate Base Rate Loans of
such Lender are to be made.

 

“Domestic Subsidiary”
shall mean any Subsidiary that is organized and existing under the laws of the
United States or any state or commonwealth thereof or under the laws of the
District of Columbia.

 

“EBITDA”
shall mean, with
respect to any Person for any period of determination, without duplication, the
sum of (a) net income of such Person for such period, plus (b) an
amount that, in the determination of net income of such Person for such period,
has been deducted for (i) interest expense, (ii) total federal,
state, local and foreign income, value added and similar taxes and (iii) depreciation,
amortization expense and other non-cash charges (except to the extent such
non-cash charges are reserves for future cash charges),
all as determined in accordance with GAAP.

 

“Eligible Assignee”
shall mean (a) a Lender, (b) an Affiliate of a Lender, (c) an
Approved Fund and (d) any other Person (other than a natural person)
approved by (i) the Administrative Agent, (ii) in the case of any
assignment of a Revolving Commitment, the Issuing Lender, and (iii) unless
an Event of Default has occurred and is continuing and so long as the 

 

 

9

 

primary syndication of
the Loans has been completed as determined by Wachovia, the Parent Borrower
(each such approval not to be unreasonably withheld or delayed); provided
that notwithstanding the foregoing, “Eligible Assignee” shall not include any
Borrower or any of the Borrowers’ Affiliates or Subsidiaries.

 

“Environmental Laws”
shall mean any and all applicable foreign, federal, state, local or municipal
laws, rules, orders, regulations, statutes, ordinances, codes, decrees,
requirements of any Governmental Authority or other Requirement of Law
(including common law) regulating, relating to or imposing liability or
standards of conduct concerning protection of human health or the environment,
as now or may at any time be in effect during the term of this Agreement.

 

“Equity Issuance”
shall mean any issuance by any Borrower or any Subsidiary to any Person that is
not a Borrower of (a) shares of its Capital Stock, (b) any shares of
its Capital Stock pursuant to the exercise of options or warrants or (c) any
shares of its Capital Stock pursuant to the conversion of any debt securities
to equity.  The term “Equity Issuance”
shall not include (i) any shares of its Capital Stock issued in connection
with the exercise of stock options held by current or former directors,
officers or employees of the Borrowers, (ii) any Asset Disposition, (iii) any
shares of its Capital Stock issued as consideration for Permitted Acquisitions
or (iv) any Debt Issuance.

 

“ERISA” shall mean
the Employee Retirement Income Security Act of 1974, as amended from time to
time.

 

“Eurodollar Reserve
Percentage” shall mean for any day, the percentage (expressed as a decimal
and rounded upwards, if necessary, to the next higher 1/100th of 1%) that is in
effect for such day as prescribed by the Board of Governors of the Federal
Reserve System (or any successor) for determining the maximum reserve requirement
(including without limitation any basic, supplemental or emergency reserves) in
respect of Eurocurrency liabilities, as defined in Regulation D of such Board
as in effect from time to time, or any similar category of liabilities for a
member bank of the Federal Reserve System in New York City.

 

“Event of Default”
shall mean any of the events specified in Section 7.1; provided, however,
that any requirement for the giving of notice or the lapse of time, or both, or
any other condition, has been satisfied.

 

“Excluded Taxes”
shall mean, with respect to the Administrative Agent, any Lender, the Issuing
Lender or any other recipient of any payment to be made by or on account of any
obligation of the Borrowers hereunder, (a) taxes imposed on or measured by
its overall net income (however denominated), and franchise taxes imposed on it
(in lieu of net income taxes), by the jurisdiction (or any political
subdivision thereof) under the laws of which such recipient is organized or in
which its principal office is located or, in the case of any Lender, in which
its applicable lending office is located, (b) any branch profits taxes
imposed by the United States of America or any similar tax imposed by any other
jurisdiction in which any Borrower is located and (c) in the case of a
Foreign Lender, any withholding tax that is imposed on amounts payable to such
Foreign Lender at the time such Foreign Lender becomes a party hereto (or
designates a new lending office) or is attributable to such Foreign Lender’s
failure or inability (other than as a 

 

 

10

 

result of a Change in
Law) to comply with Section 2.17, except to the extent that such Foreign
Lender (or its assignor, if any) was entitled, at the time of designation of a
new lending office (or assignment), to receive additional amounts from the
Borrowers with respect to such withholding tax pursuant to Section 2.17.

 

“Existing Credit
Agreement” shall have the meaning set forth in the recitals to this
Agreement.

 

“Existing Credit
Documents” shall mean the “Credit Documents” as defined in the Existing
Credit Agreement.

 

                “Existing Letters of Credit” shall mean the
letters of credit described by date of issuance, amount, purpose and the date
of expiry on Schedule 1.1-4 hereto.

 

“Extension of Credit”
shall mean, as to any Lender, the making of a Loan by such Lender, any
conversion of a Loan from one Type to another Type, any extension of any Loan
or the issuance of, or participation in, a Letter of Credit or Swingline Loan
by such Lender.

 

“Federal Funds
Effective Rate” shall have the meaning set forth in the definition of “Alternate
Base Rate”.

 

“Fee Letter” shall
mean the letter agreement dated January 2, 2008 addressed to the Parent
Borrower from Wachovia and Wachovia Capital Markets, LLC, as amended, modified
or otherwise supplemented.

 

“Fixed Charge Coverage
Ratio” shall mean, with respect to the Parent Borrower and its Subsidiaries on a consolidated basis for
the twelve month period ending on the last day of any fiscal quarter of the
Parent Borrower, the ratio of (a) Consolidated EBITDA for such
period minus Consolidated Capital Expenditures for such period to  (b) the sum of Consolidated Interest Expense paid or
payable in cash for such period plus Scheduled Funded Debt Payments for
such period plus federal, state, local and foreign income, value added
and similar taxes paid or payable in cash during such period.

 

“Flood Hazard Property”
shall mean any Mortgaged Property that is in an area designated by the Federal
Emergency Management Agency as having special flood or mudslide hazards.

 

“Foreign Lender”
shall mean any Lender that is organized under the laws of a jurisdiction other
than that in which any Borrower is resident for tax purposes.  For purposes of this definition, the United
States of America, each State thereof and the District of Columbia shall be
deemed to constitute a single jurisdiction.

 

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

 

“Fronting Fee”
shall have the meaning set forth in Section 2.6(b).

 

 

 

11

 

 

“Fund” shall mean
any Person (other than a natural person) that is (or will be) engaged in
making, purchasing, holding or otherwise investing in commercial loans and
similar extensions of credit in the ordinary course of its business.

 

“Funded Debt”
shall mean, with respect to any Person,
without duplication, (a) all obligations of such Person for borrowed
money, (b) all obligations of such Person evidenced by bonds, debentures,
notes or similar instruments, or upon which interest payments are customarily made,
(c) all obligations of such Person under conditional sale or other title
retention agreements relating to property purchased by such Person (other than
customary reservations or retentions of title under agreements with suppliers
entered into in the ordinary course of business), (d) earnout obligations
of such Person to the extent required to be shown on a balance sheet in
accordance with GAAP and all other obligations of such Person incurred, issued
or assumed as the deferred purchase price of property or services purchased by
such Person (other than trade debt incurred in the ordinary course of business
and due within six months of the incurrence thereof) that would appear as
liabilities on a balance sheet of such Person, (e) the principal portion
of all obligations of such Person under Capital Leases, (f) the maximum
amount of all letters of credit issued or bankers’ acceptances facilities
created for the account of such Person and, without duplication, all drafts
drawn thereunder (to the extent unreimbursed), (g) all preferred Capital
Stock issued by such Person and that by the terms thereof could be (at the
request of the holders thereof or otherwise) subject to mandatory sinking fund
payments, redemption or other acceleration, (h) the principal balance
outstanding under any synthetic lease, tax retention operating lease,
off-balance sheet loan or similar off-balance sheet financing product, (i) obligations of such Person under
non-compete agreements, (j) all obligations of such Person under Hedging Agreements,
excluding any portion thereof that would be accounted for as interest expense
under GAAP, (k) all Indebtedness of others of the type described in
clauses (a) through (j) hereof secured by (or for which the holder of
such Indebtedness has an existing right, contingent or otherwise, to be secured
by) any Lien on, or payable out of the proceeds of production from, property
owned or acquired by such Person, whether or not the obligations secured
thereby have been assumed; provided that the amount of such Indebtedness
shall be deemed equal to the lesser of (i) the aggregate amount of such
Indebtedness and (ii) the fair market value of the property of such Person
that secures such Indebtedness, (l) all Guaranty Obligations of such
Person with respect to Indebtedness of another Person of the type described in
clauses (a) through (j) hereof, and (m) all Indebtedness of the
type described in clauses (a) through (j) hereof of any partnership
or unincorporated joint venture (to the extent such Person is liable therefor)
in which such Person is a general partner or a joint venturer; provided,
however, that Funded Debt shall not include Indebtedness among the
Borrowers to the extent such Indebtedness would be eliminated on a consolidated
basis.

 

“GAAP” shall mean
generally accepted accounting principles in effect in the United States of
America (or, in the case of Foreign Subsidiaries with significant operations
outside the United States of America, generally accepted accounting principles
in effect from time to time in their respective jurisdictions of organization
or formation) applied on a consistent basis, subject, however, in
the case of determination of compliance with the financial covenants set out in
Section 5.9 to the provisions of Section 1.3.

 

“Government Acts”
shall have the meaning set forth in Section 2.18.

 

 

12

 

 

“Government Contract”
shall mean any contract entered into between any Borrower or any of its
Subsidiaries and the government of the United States of America, or any
department, agency, public corporation, or other instrumentality or agent
thereof or any state government or any department, agency or instrumentality or
agent thereof.

 

“Government
Obligations” shall have the meaning set forth in the definition of “Cash
Equivalents.”

 

“Governmental
Authority” shall mean the government of the United States of America or any
other nation, or of any political subdivision thereof, whether state or local,
and any agency, authority, instrumentality, regulatory body, court, central
bank or other entity exercising executive, legislative, judicial, taxing,
regulatory or administrative powers or functions of or pertaining to government
(including any supra-national bodies such as the European Union or the European
Central Bank).

 

“Guaranty Obligations” shall mean, with respect to any Person, without
duplication, any obligations of such Person (other than endorsements in the
ordinary course of business of negotiable instruments for deposit or
collection) guaranteeing or intended to guarantee any Indebtedness of any other
Person in any manner, whether direct or indirect, and including without
limitation any obligation, whether or not contingent, (a) to purchase any
such Indebtedness or any property constituting security therefor, (b) to
advance or provide funds or other support for the payment or purchase of any
such Indebtedness or to maintain working capital, solvency or other balance
sheet condition of such other Person (including without limitation keep well
agreements, maintenance agreements, comfort letters or similar agreements or
arrangements) for the benefit of any holder of Indebtedness of such other
Person, (c) to lease or purchase property, securities or services
primarily for the purpose of assuring the holder of such Indebtedness, or (d) to
otherwise assure or hold harmless the holder of such Indebtedness against loss
in respect thereof.  The amount of any
Guaranty Obligation hereunder shall (subject to any limitations set forth
therein) be deemed to be an amount equal to the outstanding principal amount
(or maximum principal amount, if larger) of the Indebtedness in respect of
which such Guaranty Obligation is made.

 

“Hedging Agreements”
shall mean, with respect to any Person, any agreement entered into to protect
such Person against fluctuations in interest rates, or currency or raw
materials values, including, without limitation, any interest rate swap, cap or
collar agreement or similar arrangement between such Person and one or more
counterparties, any foreign currency exchange agreement, currency protection
agreements, commodity purchase or option agreements or other interest or
exchange rate or commodity price hedging agreements.

 

“Incremental
Facility” shall have the meaning set forth in Section 2.5.

 

“Indebtedness”
shall mean, with respect to any Person,
without duplication, (a) all obligations of such Person for borrowed
money, (b) all obligations of such Person evidenced by bonds, debentures,
notes or similar instruments, or upon which interest payments are customarily
made, (c) all obligations of such Person under conditional sale or other
title retention agreements relating to property purchased by such Person (other
than customary reservations or retentions of title under agreements with suppliers
entered into in the ordinary course of business), (d) earnout 

 

 

13

 

obligations of such Person to the extent required to be shown on a
balance sheet in accordance with GAAP and all other obligations of such Person
incurred, issued or assumed as the deferred purchase price of property or
services purchased by such Person that would appear as liabilities on a balance
sheet of such Person, (e) all obligations of such Person under take-or-pay
or similar arrangements or under commodities agreements, (f) all
Indebtedness of others secured by (or for which the holder of such Indebtedness
has an existing right, contingent or otherwise, to be secured by) any Lien on,
or payable out of the proceeds of production from, property owned or acquired
by such Person, whether or not the obligations secured thereby have been
assumed; provided that the amount of such Indebtedness shall be deemed
equal to the lesser of (i) the aggregate amount of such Indebtedness and (ii) the
fair market value of the property of such Person that secures such
Indebtedness, (g) all Guaranty Obligations of such Person with respect to
Indebtedness of another Person, (h) the principal portion of all Capital
Lease Obligations of such Person, (i) all obligations of such Person under
Hedging Agreements, excluding any portion thereof that would be accounted for
as interest expense under GAAP, (j) the maximum amount of all letters of
credit issued or bankers’ acceptances created for the account of such Person
and, without duplication, all drafts drawn thereunder (to the extent
unreimbursed), (k) all preferred Capital Stock issued by such Person and
that by the terms thereof could be (at the request of the holders thereof or
otherwise) subject to mandatory sinking fund payments, redemption or other
acceleration, (l) the
principal balance outstanding under any synthetic lease, tax retention
operating lease, off-balance sheet loan or similar off-balance sheet financing
product, (m) the Indebtedness of any
partnership or unincorporated joint venture (to the extent such Person is
liable therefor) in which such Person is a general partner or a joint venturer
and (n) obligations of such Person under non-compete agreements.

 

“Indemnified
Taxes” shall mean Taxes other than Excluded Taxes.

 

“Indemnitee”
shall have the meaning set forth in Section 9.5(b).

 

“Insolvency” shall
mean, with respect to any Multiemployer Plan, the condition that such Plan is
insolvent within the meaning of such term as used in Section 4245 of
ERISA.

 

“Insolvent” shall
mean being in a condition of Insolvency.

 

“Intellectual Property”
shall mean all Copyrights, Copyright
Licenses, Patents, Patent Licenses, Trademarks and Trademark Licenses.

 

“Interest
Determination Date” shall have the meaning specified in the definition of “Applicable
Percentage”.

 

“Interest
Payment Date” shall mean (a) as to any Alternate Base Rate Loan, the
last Business Day of each March, June, September and December and on
the applicable Maturity Date, (b) as to any LIBOR Rate Loan having an
Interest Period of three months or less, the last day of such Interest Period, (c) as
to any LIBOR Rate Loan having an Interest Period longer than three months, (i) each
three (3) month anniversary following the first day of such Interest
Period and (ii) the last day of such Interest Period and (d) as to
any Loan which is the subject of a 

 

 

14

 

mandatory
prepayment required pursuant to Section 2.8(b), the date on which such
mandatory prepayment is due.

 

“Interest
Period” shall mean, with respect to any LIBOR Rate Loan,

 

(a)           initially,
the period commencing on the Borrowing Date or conversion date, as the case may
be, with respect to such LIBOR Rate Loan and ending one, two, three, six or
twelve months thereafter, subject to availability to all applicable Lenders, as
selected by the Parent Borrower in the Notice of Borrowing or Notice of
Conversion given with respect thereto; and

 

(b)           thereafter,
each period commencing on the last day of the immediately preceding Interest
Period applicable to such LIBOR Rate Loan and ending one, two, three, six or
twelve months thereafter, subject to the availability to all applicable
Lenders, as selected by the Borrower by irrevocable notice to the Administrative
Agent not less than three Business Days prior to the last day of the then
current Interest Period with respect thereto;

 

provided that the foregoing provisions are
subject to the following:

 

(i)            if
any Interest Period pertaining to a LIBOR Rate Loan would otherwise end on a
day that is not a Business Day, such Interest Period shall be extended to the
next succeeding Business Day unless the result of such extension would be to
carry such Interest Period into another calendar month in which event such
Interest Period shall end on the immediately preceding Business Day;

 

(ii)           any
Interest Period pertaining to a LIBOR Rate Loan that begins on the last
Business Day of a calendar month (or on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest Period)
shall end on the last Business Day of the relevant calendar month;

 

(iii)          if
the Parent Borrower shall fail to give notice as provided above, the Parent
Borrower shall be deemed to have selected an Alternate Base Rate Loan to
replace the affected LIBOR Rate Loan;

 

(iv)          no
Interest Period in respect of any Loan shall extend beyond the applicable
Maturity Date;

 

(v)           with
regard to the Term Loan or an Additional Term Loan, no Interest Period shall
extend beyond any principal amortization payment date unless the portion of the
Term Loan or such Additional Term Loan, as applicable, consisting of Alternate
Base Rate Loans together with the portion of the Term Loan or such Additional
Term Loan, as applicable, consisting of LIBOR Rate Loans with Interest Periods
expiring prior to or concurrently with the date such principal amortization
payment date is due, is at least equal to the amount of such principal
amortization payment due on such date; and

 

 

 

15

 

(vi)          no
more than eight (8) LIBOR Rate Loans may be in effect at any time.  For purposes hereof, LIBOR Rate Loans with
different Interest Periods shall be considered as separate LIBOR Rate Loans,
even if they shall begin on the same date and have the same duration, although
borrowings, extensions and conversions may, in accordance with the provisions
hereof, be combined at the end of existing Interest Periods to constitute a new
LIBOR Rate Loan with a single Interest Period.

 

“Investment” shall
mean all investments, in cash or by delivery of property, made directly or
indirectly in or to any Person, whether by acquisition of shares of Capital
Stock, property, assets, indebtedness or other obligations or securities or by loan
advance, capital contribution or otherwise.

 

“Issuing Lender”
shall mean Wachovia and any successor issuing lender.

 

“Issuing Lender Fees”
shall have the meaning set forth in Section 2.6(c).

 

“Joinder
Agreement” shall mean a Joinder Agreement substantially in the form of Exhibit 5.10,
executed and delivered by an Additional Borrower in accordance with the
provisions of Section 5.10.

 

“Lender” several
banks and other financial institutions as may from time to time become parties
to this Agreement, including the Swingline Lender and the Issuing Lender.

 

“Lender
Commitment Letter” shall mean, with respect to any Lender, the letter (or
other correspondence) to such Lender from the Administrative Agent notifying
such Lender of its LOC Commitment, Revolving Commitment Percentage and/or Term
Loan Commitment Percentage.

 

“Lender Consent”
shall mean any lender consent delivered by a Lender on the Closing Date in the
form of Exhibit 4.1-2.

 

“Letter of Credit Fee”
shall have the meaning set forth in Section 2.6(b).

 

“Letters of Credit”
shall mean (a) any letter of credit issued by the Issuing Lender pursuant
to the terms hereof and (b) any Existing Letter of Credit, in each case as
such letter of credit may be amended, modified, extended, renewed or replaced
from time to time.

 

“Leverage
Ratio” shall mean, with
respect to the Parent Borrower and its Subsidiaries
on a consolidated basis for the twelve month period ending on the last day of
any fiscal quarter of the Parent Borrower, the ratio of (a) Funded Debt of
the Parent Borrower and its Subsidiaries on a consolidated basis on the last
day of such period to (b) Consolidated EBITDA for such period.

 

“LIBOR” shall
mean, for any LIBOR Rate Loan for any
Interest Period therefor, the rate per annum (rounded upwards, if necessary, to
the nearest 1/100 of 1%) appearing on Reuters Screen 

 

 

16

 

LIBOR
01 Page (or any successor page) as the London interbank offered rate for
deposits in Dollars at approximately 11:00 A.M. (London time) two Business
Days prior to the first day of such Interest Period for a term comparable to
such Interest Period.  If for any reason
such rate is not available, then “LIBOR” shall mean the rate per annum at which, as determined by
the Administrative Agent, Dollars in an amount comparable to the Loans then
requested are being offered to leading banks at approximately 11:00 A.M. London time, two (2) Business
Days prior to the commencement of the applicable Interest Period for settlement
in immediately available funds by leading banks in the London interbank market
for a period equal to the Interest Period selected.

 

“LIBOR Lending Office”
shall mean, initially, the office(s) of each Lender designated as such
Lender’s LIBOR Lending Office shown in such Lender’s Administrative
Questionnaire; and thereafter, such other office of such Lender as such Lender
may from time to time specify to the Administrative Agent and the Parent
Borrower as the office of such Lender at which the LIBOR Rate Loans of such
Lender are to be made.

 

“LIBOR Rate” shall
mean a rate per annum (rounded upwards, if necessary, to the next higher
1/100th of 1%) determined by the Administrative Agent pursuant to the following
formula:

 

	
   

  	
  LIBOR Rate =

  	
  LIBOR

  	
   

  
	
   

  	
   

  	
  1.00 -
  Eurodollar Reserve Percentage

  	
   

  

 

“LIBOR Rate Loan”
shall mean Loans the rate of interest applicable to which is based on the LIBOR
Rate.

 

“LIBOR Tranche”
shall mean the collective reference to LIBOR Rate Loans whose Interest Periods
begin and end on the same day.

 

“Lien” shall mean any
mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance,
lien (statutory or other), charge or other security interest or any preference,
priority or other security agreement or preferential arrangement of any kind or
nature whatsoever (including, without limitation, any conditional sale or other
title retention agreement and any Capital Lease having substantially the same
economic effect as any of the foregoing).

 

“Loan” shall mean
a Revolving Loan, the Term Loan, a Swingline Loan and/or an Additional Loan as
appropriate; and “Loans” shall mean, collectively, the Revolving Loans,
the Term Loan, the Swingline Loans and the Additional Loans.

 

“LOC Commitment”
shall mean the commitment of the Issuing Lender to issue Letters of Credit in
an amount up to the LOC Committed Amount and with respect to each Revolving
Lender, the commitment of such Revolving Lender to purchase Participation
Interests in the Letters of Credit based on such Revolving Lender’s Revolving
Commitment Percentage as specified in the Lender Commitment Letter or in the
register, or in the applicable Assignment and Assumption, as such amount may be
reduced from time to time in accordance with the provisions hereof.

 

 

 

17

 

“LOC Committed Amount”
shall have the meaning set forth in Section 2.3(a).

 

“LOC Documents”
shall mean, with respect to any Letter of Credit, such Letter of Credit, any
amendments thereto, any documents delivered in connection therewith, any
application therefor, and any agreements, instruments, guarantees or other
documents (whether general in application or applicable only to such Letter of
Credit) governing or providing for (a) the rights and obligations of the
parties concerned or (b) any
Collateral for such obligations.

 

“LOC Obligations”
shall mean, at any time, the sum of (a) the maximum amount that is, or at
any time thereafter may become, available to be drawn under Letters of Credit
then outstanding, assuming compliance with all requirements for drawings
referred to in such Letters of Credit plus (b) the aggregate amount of all drawings under Letters of
Credit honored by the Issuing Lender but not theretofore reimbursed.

 

“LOGTEC” shall
mean LOGTEC, Inc., an Ohio corporation.

 

“LOGTEC
Acquisition” shall mean the acquisition of LOGTEC pursuant to the LOGTEC
Acquisition Documents.

 

“LOGTEC
Acquisition Documents” shall mean the LOGTEC Stock Purchase Agreement and
each other agreement executed and delivered to the stockholders of LOGTEC by
the Borrowers in connection with the consummation of the LOGTEC Acquisition,
each as amended, modified or supplemented.

 

“Mandatory LOC
Borrowing” shall have the meaning set forth in Section 2.3(e).

 

“Mandatory
Swingline Borrowing” shall have the meaning set forth in Section 2.4(b)(ii).

 

“Material Adverse
Effect” shall mean a material adverse effect on (a) the business, operations, property or financial
condition of the Parent Borrower and its Subsidiaries taken as a whole, (b) the ability of any Borrower to
perform its obligations, when such obligations are required to be performed,
under this Agreement, any of the Notes or any other Credit Document or (c) the validity or enforceability
of this Agreement, any of the Notes or any of the other Credit Documents or the
rights or remedies of the Administrative Agent or the Lenders hereunder or
thereunder or the perfection or priority of any Lien in favor of the
Administrative Agent.

 

“Material Contract”
shall mean (a) any material partnership or joint venture agreement to
which any Borrower or any of its Subsidiaries is a party (other than normal
subcontracts in the ordinary course of business), (b) any Material
Government Contract, (c) any contract, agreement, permit or license,
written or oral, of any Borrower or any of its Subsidiaries involving monetary
liability of or to any such Person in an amount in excess of $10,000,000 per
annum and (d) any other contract, agreement, permit or license, written or
oral, of any Borrower or any of its Subsidiaries as to which the breach, nonperformance,
cancellation or failure to renew (to the extent renewable by its terms) by any
party thereto could reasonably be expected to have a Material Adverse Effect.

 

 

 

18

 

“Material Government
Contract” shall mean a Government Contract with a remaining term in excess
of six (6) months pursuant to which the aggregate value of goods or
services to be provided thereunder exceeds $10,000,000 over the remaining term
of such contract.

 

“Materials of
Environmental Concern” shall mean any gasoline or petroleum (including
crude oil or any extraction thereof) or petroleum products or any hazardous or
toxic substances, materials or wastes, defined or regulated as such in or under
any Environmental Law, including, without limitation, asbestos, polychlorinated
biphenyls and urea-formaldehyde insulation.

 

“Maturity Date”
shall mean (a) the Revolving Commitment Termination Date with respect to
Revolving Loans, Swingline Loans and Letters of Credit and (b) the Term
Loan Maturity Date with respect to Term Loans.

 

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

 

“Mortgage Instrument”
shall mean any mortgage, deed of trust, deed to secure debt or assignment of
leases and rents executed by a Borrower in favor of the Administrative Agent,
for the benefit of the Secured Parties, as the same may be amended, extended,
modified, restated, replaced or supplemented from time to time.

 

“Mortgage Policy”
shall mean, with respect to any Mortgage Instrument, an ALTA mortgagee title insurance
policy issued by a Title Company in such amount as reasonably approved by the
Administrative Agent, assuring the Administrative Agent that such Mortgage
Instrument creates a valid and enforceable first priority mortgage lien on the
applicable Mortgaged Property, free and clear of all defects and encumbrances
except Permitted Liens, which Mortgage Policy shall be in form and substance
reasonably satisfactory to the Administrative Agent and shall provide for
affirmative insurance and such reinsurance as the Administrative Agent may
reasonably request.

 

“Mortgaged Property”
shall mean any owned or leased real property of a Borrower with respect to
which such Borrower executes a Mortgage Instrument in favor of the
Administrative Agent, as listed on Schedule 4.1-2.

 

“Multiemployer
Plan” shall mean a Plan that is a multiemployer plan as defined in Section 4001(a)(3) of
ERISA.

 

“Net Cash
Proceeds” shall mean the aggregate cash proceeds received by any Borrower
or any Subsidiary in respect of any Asset Disposition or Debt Issuance, net of (a) direct costs (including, without
limitation, reasonable legal, accounting and investment banking fees, and sales
commissions) and (b) taxes paid
or payable as a result thereof; it being understood that “Net Cash Proceeds”
shall include, without limitation, any net cash received upon the sale or other
disposition of any non-cash consideration received by any Borrower or any
Subsidiary in any Asset Disposition or Debt Issuance.

 

“Note” or “Notes”
shall mean the Revolving Notes, the Swingline Note and/or the Term Notes,
collectively, separately or individually, as appropriate.

 

 

 

19

 

“Notice of
Borrowing” shall mean a request for a Revolving Loan borrowing pursuant to Section 2.1(b)(i) or
a request for a Swingline Loan borrowing pursuant to Section 2.4(b)(i), as
appropriate, in substantially the form of the notice of borrowing attached
hereto as Exhibit 2.1(b)(i).

 

“Notice of
Conversion” shall mean the written notice of continuation or conversion as
referenced and defined in Section 2.10.

 

“Obligations”
shall mean, collectively, Loans and LOC Obligations and all other obligations
of the Borrowers to the Administrative Agent and the Lenders under the Credit
Documents.

 

“OFAC”
shall mean the U.S. Department of the Treasury’s Office of Foreign Assets
Control.

 

“Operating
Lease” shall mean, as applied to any Person, any lease (including, without
limitation, leases which may be terminated by the lessee at any time) of any
property (whether real, personal or mixed) that is not a Capital Lease other
than any such lease in which that Person is the lessor.

 

“Other Taxes”
shall mean all present or future stamp or documentary taxes or any other excise
or property taxes, charges or similar levies arising from any payment made
hereunder or under any other Credit Document or from the execution, delivery or
enforcement of, or otherwise with respect to, this Agreement or any other
Credit Document.

 

“Parent
Borrower” shall have the meaning set forth in the first paragraph of this
Agreement.

 

“Participant”
has the meaning assigned to such term in clause (d) of Section 9.6.

 

“Participation
Interest” shall mean a participation interest purchased by a Revolving
Lender in LOC Obligations as provided in Section 2.3 and in Swingline
Loans as provided in Section 2.4.

 

“Patent Licenses” shall mean all agreements, whether written or
oral, providing for the grant by or to a Person of any right to manufacture,
use or sell any invention covered by a Patent, including, without limitation,
any thereof referred to in Schedule 3.16.

 

“Patents”
shall mean (a) all letters patent of the United States or any other
country, now existing or hereafter arising, and all improvement patents,
reissues, reexaminations, patents of additions, renewals and extensions
thereof, including, without limitation, any thereof referred to in Schedule
3.16, and (b) all applications for letters patent of the United States
or any other country, now existing or hereafter arising, and all provisionals,
divisions, continuations and continuations-in-part and substitutes thereof,
including, without limitation, any thereof referred to in Schedule 3.16.

 

 

 

20

 

“Patriot Act”
shall mean The Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001 (Title III of
Pub. L. No. 107-56 (signed into law October 26, 2001)), as amended or
modified from time to time.

 

“PBGC”
shall mean the Pension Benefit Guaranty Corporation established pursuant to
Subtitle A of Title IV of ERISA.

 

“Permitted Acquisition” shall mean an acquisition or any series
of related acquisitions by a Borrower of some or all of the assets or all or
substantially all of the Capital Stock of a Person or any division, line of
business or other business unit of a Person (such Person or such division, line
of business or other business unit of such Person referred to herein as the “Target”),
in each case that is a type of business (or assets used in a type of business)
permitted to be engaged in by the Borrowers and their Subsidiaries pursuant to Section 6.3
hereof, so long as (a) no Default or Event of Default shall then exist or
will exist after giving effect thereto, (b) the Borrowers shall deliver a
certificate to be reasonably satisfactory to the Administrative Agent that the
Borrowers will be in compliance on a Pro Forma Basis with all of the terms and
provisions of the financial covenants set forth in Section 5.9, (c) the
Administrative Agent, on behalf of the Lenders, shall have received (or shall
receive in connection with the closing of such acquisition) a first priority
perfected security interest in all property (including, without limitation,
Capital Stock), subject to Permitted Liens, acquired with respect to the Target
and the Target, if a Person, shall have become a Borrower under the Credit
Documents pursuant to Section 5.10, (d) the Target has EBITDA for the
twelve month period ending as of the most recent fiscal quarter end prior to
the acquisition date in an amount greater than $0, (e) such acquisition is
not a “hostile” acquisition and has been approved by the Board of Directors
and/or shareholders of the applicable Borrower and the Target, (f) after
giving effect to such acquisition, there shall be at least $15,000,000 of
aggregate liquidity between (A) the borrowing availability under the
Revolving Committed Amount and (B) cash on the balance sheet of the
Borrowers not subject to a reserve or other restriction, (g) the aggregate
consideration (including, without limitation, equity consideration, earn outs
or deferred compensation or non-competition arrangements and the amount of
Indebtedness and other liabilities incurred or assumed by the Borrowers and
their Subsidiaries) paid by the Borrowers and their Subsidiaries in connection
with any single acquisition shall not exceed $100,000,000 and (h) the
Administrative Agent and the Lenders shall have received the notice and
information required by Section 5.2(g).

 

“Permitted
Acquisition EBITDA” shall mean, for purposes of determining Consolidated
EBITDA for any period prior to (a) the LOGTEC Acquisition or (b) a
Permitted Acquisition, the sum of (i) EBITDA of (A) the Target or
Targets acquired in such acquisition for such period or (B) LOGTEC for
such period, in each case, as applicable and as approved by the Administrative
Agent in its reasonable discretion plus (ii) all adjustments to
such EBITDA permitted pursuant to Regulation S-X, as determined by the
Administrative Agent and, if such adjustments exceed 25% of such EBITDA, the
Required Lenders, in each case in its or their reasonable discretion.

 

“Permitted
Acquisition Subordinated Indebtedness” shall mean all Indebtedness set
forth in Section 6.1(h).

 

 

 

21

 

“Permitted Investments” shall mean:

 

(a)           cash
and Cash Equivalents;

 

(b)           receivables
owing to any Borrower or any of its Subsidiaries and advances to suppliers, in
each case if created, acquired or made in the ordinary course of business and
payable or dischargeable in accordance with customary trade terms or otherwise
reasonably determined to be appropriate in the business judgment of the
Borrowers;

 

(c)           investments
or loans (pursuant to Section 6.1(d)) made by a Borrower in or to another
Borrower that is a wholly-owned Subsidiary;

 

(d)           loans
and advances to officers, directors and employees in an aggregate amount not to
exceed $1,500,000 at any time outstanding;

 

(e)           investments
(including debt obligations) received in connection with the bankruptcy or reorganization
of suppliers and customers and in settlement of delinquent obligations of, and
other disputes with, customers and suppliers arising in the ordinary course of
business;

 

(f)            Hedging Agreements to the extent
permitted hereunder;

 

(g)           non-cash
consideration received in connection with sales of property or assets permitted
under Section 6.4(a); and

 

(h)           Permitted
Acquisitions and investments assumed in connection with Permitted Acquisitions.

 

“Permitted
Liens” shall mean:

 

(a)           Liens
created by or otherwise existing, under or in connection with this Agreement or
the other Credit Documents in favor of the Administrative Agent for the ratable
benefit of the Secured Parties;

 

(b)           purchase
money Liens securing purchase money Indebtedness (and refinancings thereof) and
Liens arising in connection with Capital Leases (and refinancings thereof), in
each case to the extent permitted under Section 6.1(c);

 

(c)           Liens
for taxes, assessments, charges or other governmental levies not yet due or as
to which the period of grace, if any, related thereto has not expired or which
are being contested in good faith by appropriate proceedings; provided
that adequate reserves with respect thereto are maintained on the books of the
Borrowers or their Subsidiaries, as the case may be, in conformity with GAAP
(or, in the case of Subsidiaries with significant operations outside of the
United States of America, generally accepted accounting principles in effect
from time to time in their respective jurisdictions of incorporation);

 

 

22

 

(d)           Liens to secure the performance of
bids, trade contracts (other than for borrowed money), leases, statutory
obligations, surety and appeal bonds (other than bonds related to judgments or
litigation), performance bonds and other obligations of a like nature incurred
in the ordinary course of business;

 

(e)           Liens
existing on the Closing Date and set forth on Schedule 1.1-2; provided
that (i) no such Lien shall at
any time be extended to cover property or assets other than the property or
assets subject thereto on the Closing Date and
(i) the principal amount of the Indebtedness secured by such Liens
shall not be increased, extended, renewed, refunded or refinanced other than in
accordance with the terms of Section 6.1(b);

 

(f)            any
extension, renewal or replacement (or successive extensions, renewals or
replacements), in whole or in part, of any Lien referred to in the foregoing
clauses; provided that such extension, renewal or replacement Lien shall
be limited to all or a part of the property that secured the Lien so extended,
renewed or replaced (plus improvements on such property);

 

(g)           easements,
rights-of-way, zoning restrictions, minor defects or irregularities in title
and other similar encumbrances not interfering in any material respect with the
value or use of the property to which such Lien is attached;

 

(h)           Liens
in favor of a landlord on leasehold improvements in leased premises and
statutory landlord Liens;

 

(i)            Liens
on assets, the construction, improvement or acquisition of which were financed
with Indebtedness permitted to be assumed pursuant to Section 6.1(h)(ii); provided
that such Liens shall extend only to the assets constructed, improved or
acquired with the proceeds of such Indebtedness;

 

(j)            Liens in favor of a Bank Product
Provider in connection with a Bank Product; but only (i) to the extent
such Liens are on the same collateral as to which the Administrative Agent on
behalf of the Lenders also has a Lien and (ii) if such Bank Product
Provider and the Lenders shall share pari passu in the collateral subject to
such Liens;

 

(k)           other
Liens in addition to those permitted by the foregoing clauses securing
Indebtedness in an aggregate amount not to exceed $10,000,000.

 

“Person” shall
mean an individual, partnership, corporation, limited liability company,
business trust, joint stock company, trust, unincorporated association, joint
venture, Governmental Authority or other entity of whatever nature.

 

“Plan” shall mean,
at any particular time, any employee benefit plan that is covered by Title IV
of ERISA and in respect of which any Borrower or a Commonly Controlled Entity
is 

 

 

23

 

(or, if such plan were
terminated at such time, would under Section 4069 of ERISA be deemed to
be) an “employer” as defined in Section 3(5) of ERISA.

 

“Pledge Agreements”
shall mean (a) the Second Amended and Restated Pledge Agreement dated as
of the Closing Date to be executed in favor of the Administrative Agent by the
Borrowers and (b) any other Pledge Agreement executed by a Borrower to
secure the Borrowers’ Obligations, in each
case as amended, modified, restated or supplemented from time to time.

 

“Prime Rate” shall
have the meaning set forth in the definition of Alternate Base Rate.

 

“Pro Forma
Basis” shall mean, with respect to any
transaction, that such transaction shall be deemed to have occurred as
of the first day of the four-quarter period ending as of the most recent
quarter end preceding the date of such
transaction.

 

“Pro Forma EBITDA”
shall mean Consolidated EBITDA of the Parent Borrower and its Subsidiaries for
the twelve month period ended September 29, 2007, calculated on a Pro
Forma Basis.

 

“Properties” shall
have the meaning set forth in Section 3.10(a).

 

“Recovery Event”
shall mean theft, loss, physical destruction or damage, taking or similar event
with respect to any property or assets owned by the Borrowers or any of their
Subsidiaries that results in the receipt by the Borrowers or any of their
Subsidiaries of any cash insurance proceeds or condemnation award payable by
reason thereof.

 

“Register” shall
have the meaning set forth in Section 9.6(c).

 

“Regulation S-X”
shall mean Regulation S-X of the Securities Act or any successor regulation
thereto.

 

“Related
Parties” shall mean, with respect to any Person, such Person’s Affiliates
and the partners, directors, officers, employees, agents  and
advisors of such Person and of such Person’s Affiliates.

 

“Reorganization”
shall mean, with respect to any Multiemployer Plan, the condition that such
Plan is in reorganization within the meaning of such term as used in Section 4241
of ERISA.

 

“Reportable Event”
shall mean any of the events set forth in Section 4043(c) of ERISA,
other than those events as to which the thirty-day notice period is waived
under PBGC Reg. §4043.

 

“Required Lenders”
shall mean, as of any date of determination, Lenders holding in the aggregate
greater than 50% of the sum of (a) (i) the Revolving Commitments or (ii) if the Revolving Commitments
have been terminated, the outstanding Revolving Loans and 

 

 

24

 

Participation
Interests (including the Participation Interests of Wachovia, in its capacity
as a Lender, in any Letters of Credit and Swingline Loans) and (b) the
outstanding Term Loan and Additional Term Loans on such date of determination; provided,
however, that if any Lender shall be a Defaulting Lender at such time,
then there shall be excluded from the determination of Required Lenders, the
Term Loan and Additional Term Loans owing to such Defaulting Lender and such
Defaulting Lender’s Revolving Commitment or, after termination of the Revolving
Commitments, the principal balance of the Revolving Loans owing to such
Defaulting Lender and such Defaulting Lender’s Participation Interests.

 

“Requirement of
Law” shall mean, as to any Person, (a) the articles or certificate of
incorporation, by-laws or other organizational or governing documents of such
Person, and (b) all international, foreign, federal, state and local
statutes, treaties, rules, guidelines, regulations, ordinances, codes,
executive orders, and administrative or judicial precedents or authorities; in
each case applicable to or binding upon such Person or any of its property or
to which such Person or any of its property is subject.

 

“Responsible
Officer” shall mean, for any Borrower, any duly authorized officer thereof
and in which the Administrative Agent has an incumbency certificate indicating
such officer is a duly authorized officer thereof.

 

“Restricted Payment”
shall mean (a) any dividend or
other distribution, direct or indirect, on account of any shares of any class
of Capital Stock of the Borrowers or any of their Subsidiaries, now or
hereafter outstanding, (b) 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 the Borrowers or any of their Subsidiaries, now or hereafter
outstanding, (c) any payment
made to retire, or to obtain the surrender of, any outstanding warrants,
options or other rights to acquire shares of any class of Capital Stock of the
Borrowers or any of their Subsidiaries, now or hereafter outstanding, (d) any
payment or prepayment of principal or premium, if any, or interest upon the
redemption, purchase, retirement, defeasance, sinking fund or similar payment
with respect to any Subordinated Debt (other than Subordinated Debt between or
among Borrowers or payments on Subordinated Debt permitted by the Required
Lenders), or  (e) the payment by
the Borrowers or any of their Subsidiaries of any management or consulting fee
to any Person or of any salary, bonus or other form of compensation to any
Person who is directly or indirectly a significant partner, shareholder, owner
or executive officer of any such Person, to the extent such salary, bonus or
other form of compensation is not included in the corporate overhead of such
Borrower or such Subsidiary.

 

“Revolving Commitment”
shall mean, with respect to each Revolving Lender, the commitment of such
Revolving Lender to make Revolving Loans in an aggregate principal amount at
any time outstanding up to an amount equal to such Lender’s Revolving
Commitment Percentage of the Revolving Committed Amount.

 

“Revolving Commitment
Percentage” shall mean, for each Revolving Lender, the percentage
identified as its Revolving Commitment Percentage in its Lender Commitment
Letter or in the Assignment and Assumption pursuant to which such Lender became
a Lender 

 

 

25

 

hereunder, or in the
Register, as such percentage may be modified in connection with any assignment
made in accordance with the provisions of Section 9.6(c).

 

“Revolving Commitment
Termination Date” shall mean five (5) years following the Closing
Date.

 

“Revolving
Committed Amount” shall have the meaning set forth in Section 2.1.

 

“Revolving Lender”
shall mean, as of any date of determination, any Lender holding a Revolving
Commitment, a Revolving Loan or a Participation Interest on such date.

 

“Revolving Loans”
shall have the meaning set forth in Section 2.1.

 

“Revolving Note”
or “Revolving Notes” shall mean the promissory notes of the Borrowers,
if any, provided pursuant to Section 2.1(e) in favor of any of the
Revolving Lenders evidencing the Revolving Loan provided by any such Revolving
Lender pursuant to Section 2.1(a), individually or collectively, as
appropriate, as such promissory notes may be amended, modified, extended,
restated, replaced, or supplemented from time to time.

 

“S&P” shall
mean Standard & Poor’s Ratings Services, a division of The McGraw Hill
Companies, Inc.

 

“Sanctioned
Entity” shall mean (a) a country or a government of a country, (b) an
agency of the government of a country, (c) an organization directly or
indirectly controlled by a country or its government, or (d) a person or
entity resident in or determined to be resident in a country, that is subject
to a country sanctions program administered and enforced by OFAC.

 

“Sanctioned
Person” shall mean a person named on the list of Specially Designated
Nationals maintained by OFAC.

 

“Sarbanes-Oxley”
shall mean the Sarbanes-Oxley Act of 2002.

 

“Scheduled Funded Debt
Payments” shall mean, as of any date of determination for the Parent
Borrower and its Subsidiaries, the sum of all scheduled payments of principal
on Funded Debt for the applicable period ending on the date of determination
(including the principal component of payments due on Capital Leases during the
applicable period ending on the date of determination).

 

                “Secured Hedging Agreement”
shall mean any Hedging Agreement between a Borrower and a Bank Product
Provider, as amended, restated, amended and restated, modified, supplemented or
extended from time to time.

 

                “Secured Parties” shall
mean the Lenders and the Bank Product Providers.

 

                “Securities Act” shall
mean the Securities Act of 1933, together with any amendment thereto or
replacement thereof and any rules or regulations promulgated thereunder.

 

 

26

 

                “Securities Exchange Act”
shall mean the Securities Exchange Act of 1934, together with any amendment
thereto or replacement thereof and any rules or regulations promulgated
thereunder.

 

“Security Agreements”
shall mean (a) the Second Amended and Restated Security Agreement dated as
of the Closing Date given by the Borrowers to the Administrative Agent for the
ratable benefit of the Lenders and (b) any other Security Agreement
executed by a Borrower to secure the Borrowers’ Obligations, in each case as
amended, modified or supplemented from time to time in accordance with its
terms.

 

“Security
Documents” shall mean the Security Agreements, the Pledge Agreements, the
Mortgage Instruments and all other agreements, documents and instruments
relating to, arising out of, or in any way connected with any of the foregoing
documents or granting to the Administrative Agent, Liens or security interests
to secure, inter alia, the Borrowers’ Obligations whether now or hereafter
executed and/or filed, each as may be amended from time to time in accordance
with the terms hereof, executed and delivered in connection with the granting,
attachment and perfection of the Administrative Agent’s security interests and
Liens arising thereunder, including, without limitation, UCC financing
statements.

 

“Single
Employer Plan” shall mean any Plan that is not a Multiemployer Plan.

 

“Specified Sales”
shall mean (a) the sale,
transfer, lease or other disposition of inventory and materials in the ordinary
course of business and (b) the
sale, transfer or other disposition of cash into Cash Equivalents or Cash
Equivalents into cash.

 

“Subordinated
Debt” shall mean any Indebtedness incurred by any Borrower that by its
terms is specifically subordinated in right of payment to the prior payment of
the Borrowers’ Obligations on such other terms and conditions as are
satisfactory to the Required Lenders.

 

“Subsidiary”
shall mean, as to any Person, a corporation, partnership, limited liability
company or other entity of which shares of stock or other ownership interests
having ordinary voting power (other than stock or such other ownership
interests having such power only by reason of the happening of a contingency)
to elect a majority of the board of directors or other managers of such
corporation, limited liability company, partnership or other entity are at the
time owned, or the management of which is otherwise controlled, directly or
indirectly through one or more intermediaries, or both, by such Person.  Unless otherwise qualified, all references to
a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a
Subsidiary or Subsidiaries of the Borrowers.

 

“Swingline
Commitment” shall mean the commitment of the Swingline Lender to make
Swingline Loans in an aggregate principal amount at any time outstanding up to
the Swingline Committed Amount, and the commitment of the Revolving Lenders to
purchase Participation Interests in the Swingline Loans as provided in Section 2.4(b)(ii),
as such amounts may be adjusted from time to time in accordance with the
provisions hereof.

 

 

27

 

“Swingline
Committed Amount” shall mean the amount of the Swingline Lender’s Swingline
Commitment as specified in Section 2.4(a).

 

“Swingline
Lender” shall mean Wachovia and any successor swingline lender.

 

“Swingline Loan”
or “Swingline Loans” shall have the meaning set forth in Section 2.4(a).

 

“Swingline Note”
shall mean the promissory note of the Borrowers in favor of the Swingline
Lender evidencing the Swingline Loans provided pursuant to Section 2.4(d),
as such promissory note may be amended, modified, supplemented, extended,
renewed or replaced from time to time.

 

“Target”
shall have the meaning set forth in the definition of “Permitted Acquisition.”

 

“Taxes”
shall mean all present or future taxes, levies, imposts, duties, deductions,
withholdings, assessments, fees or other charges imposed by any Governmental
Authority, including any interest, additions to tax or penalties applicable
thereto.

 

“Term Loan”
shall have the meaning set forth in Section 2.2(a).

 

“Term Loan
Commitment” shall mean, with respect to each Term Loan Lender, the
commitment of such Term Loan Lender to make its portion of the Term Loan in a
principal amount equal to such Term Loan Lender’s Term Loan Commitment
Percentage of the Term Loan Committed Amount.

 

“Term Loan Commitment
Percentage” shall mean, for any Term Loan Lender, the percentage identified
as its Term Loan Commitment Percentage in its Lender Commitment Letter, or in
the Assignment and Assumption, pursuant to which such Lender became a Lender
hereunder, or in the Register, as such percentage may be modified in connection
with any assignment made in accordance with the provisions of Section 9.6.

 

“Term Loan
Committed Amount” shall have the meaning set forth in Section 2.2(a).

 

“Term Loan
Lender” shall mean any, as of the date of any determination, Term Loan
Lender holding a Term Loan Commitment and/or a portion of the outstanding Term
Loan on such date.

 

“Term Loan
Maturity Date” shall mean five (5) years following the Closing Date.

 

“Term Note”
or “Term Notes” shall mean the promissory notes of the Borrowers, if
any, in favor of each of the Term Loan Lenders requesting such a note
evidencing the portion of the Term Loan provided pursuant to Section 2.2(d) by
such Term Loan Lender, individually or collectively, as appropriate, as such
promissory notes may be amended, modified, restated, supplemented, extended,
renewed or replaced from time to time.

 

 

28

 

“Total
Consideration” shall mean, with respect to any Permitted Acquisition, total
consideration paid or payable including, without limitation, cash, stock,
assumed debt and earnout obligations.

 

“Trademark
License” shall mean any agreement, whether written or oral, providing for
the grant by or to a Person of any right to use any Trademark, including,
without limitation, any thereof referred to in Schedule 3.16 to this
Credit Agreement.

 

                “Trademarks” shall mean
all trademarks, trade names, corporate names, company names, business names,
fictitious business names, service marks, elements of package or trade dress of
goods or services, logos and other source or business identifiers (other than
such items that are of de minimus value), together with the goodwill associated
therewith, now existing or hereafter adopted or acquired, all registrations and
recordings thereof, and all applications in connection therewith, whether in
the United States Patent and Trademark Office or in any similar office or
agency of the United States, any State thereof or any other country or any
political subdivision thereof, including, without limitation, any thereof
referred to in Schedule 3.16 to this Credit Agreement, and all renewals
thereof including, without limitation, any thereof referred to in Schedule
3.16.

 

“Tranche” shall
mean the collective reference to (a) LIBOR Rate Loans whose Interest
Periods begin and end on the same day and (b) Alternate Base Rate Loans
made on the same day.

 

“Transfer
Effective Date” shall have the meaning set forth in each Assignment and
Assumption.

 

“Type”
shall mean, as to any Loan, its nature as an Alternate Base Rate Loan or LIBOR
Rate Loan, as the case may be.

 

                “UCC” shall mean the
North Carolina Uniform Commercial Code as it may be revised from time to time; provided
that if, and to the extent that, the Uniform Commercial Code of a jurisdiction
other than North Carolina governs perfection, the effect of perfection or
non-perfection, or the priority of a security interest created under this
Credit Agreement, then “UCC” shall refer to the Uniform Commercial Code of such
other jurisdiction to the extent applicable to the perfection, the effect of
perfection or non-perfection, or the priority of such security interest.

 

                “Voting Stock”
shall mean, with respect to any Person, Capital Stock issued by such Person the
holders of which are ordinarily, in the absence of contingencies, entitled to
vote for the election of directors (or persons performing similar functions) of
such Person, even though the right so to vote has been suspended by the
happening of such a contingency.

 

“Wachovia” shall
mean Wachovia Bank, National Association, a national banking association,
together with its successors and/or permitted assigns.

 

“Works”
shall mean all works that are subject to copyright protection pursuant to Title
17 of the United States Code.

 

 

 

29

 

 

Section 1.2             Other Definitional Provisions.

 

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, restated, supplemented, amended and
restated 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
Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles
and Sections of, and Exhibits and Schedules to, this Agreement, (e) any
reference to any law or regulation herein shall, unless otherwise specified,
refer to such law or regulation as amended, modified or supplemented from time
to time, (f) the words “asset” and “property” shall be construed to have
the same meaning and effect and to refer to any and all tangible and intangible
assets and properties, including cash, securities, accounts and contract rights
and (g) all terms defined in this Agreement shall have the defined
meanings when used in any other Credit Document or any certificate or other
document made or delivered pursuant hereto.

 

Section 1.3             Accounting Terms.

 

Unless otherwise
specified herein, all accounting terms used herein shall be interpreted, all
accounting determinations hereunder shall be made, and all financial statements
required to be delivered hereunder shall be prepared in accordance with GAAP
applied on a basis consistent with the most recent audited consolidated
financial statements of the Parent Borrower  delivered to
the Lenders; provided that, if the Parent Borrower shall notify the
Administrative Agent that it wishes to amend any definition or provision
incorporated in Section 5.9 to eliminate the effect of any change in GAAP
on the operation of any such definition or provision (or if the Administrative
Agent notifies the Parent Borrower that the Required Lenders wish to amend any
such definition or provision for such purpose), then the Borrowers’ compliance
with such provision shall be determined on the basis of GAAP in effect
immediately before the relevant change in GAAP became effective, until either
such notice is withdrawn or such definition or provision is amended in a manner
satisfactory to the Parent Borrower and the Required Lenders.

 

The Parent Borrower shall
deliver to the Administrative Agent and each Lender at the same time as the
delivery of any annual or quarterly financial statements given in accordance
with the provisions of Section 5.1, (a) a description in reasonable
detail of any material change in the application of accounting principles
employed in the preparation of such financial statements from those applied in
the most recently preceding quarterly or annual financial statements as to
which no objection shall have been made in accordance with the provisions above
and (b) a 

 

 

 

 

 

 

 

 

30

 

reasonable estimate of
the effect on the financial statements on account of such changes in
application.

 

For purposes of computing
the financial covenants set forth in Section 5.9 for any applicable test
period, any Permitted Acquisition or permitted sale of assets (including a
stock sale) shall be given pro forma effect as if such transaction had taken
place as of the first day of such applicable test period.

 

Section 1.4             Time References.

 

Unless otherwise
specified, all references herein to times of day shall be references to Eastern
time (daylight or standard, as applicable).

 

Section 1.5             Execution of Documents.

 

Unless otherwise
specified, all Credit Documents and all other certificates executed in
connection therewith must be signed by a Responsible Officer.

 

ARTICLE II

THE LOANS; AMOUNT AND TERMS

 

Section 2.1             Revolving Loans.

 

(a)           Revolving
Commitment.  During the
Commitment Period, subject to the terms and conditions hereof, each Revolving
Lender severally, but not jointly, agrees to make revolving credit loans (“Revolving
Loans”) to the Borrowers from time to time in an aggregate principal amount
of up to such Revolving Lender’s Revolving Commitment Percentage of ONE HUNDRED AND FORTY MILLION DOLLARS ($140,000,000) (as
increased from time to time as provided in Section 2.5 and as such
aggregate amount may be reduced from time to time as provided in Section 2.7,
the “Revolving Committed Amount”) for the purposes hereinafter set
forth; provided, however, that (i) with regard to each
Revolving Lender individually, the sum of such Revolving Lender’s  share of outstanding Revolving Loans plus
such Revolving Lender’s Revolving Commitment Percentage of outstanding
Swingline Loans plus such Revolving Lender’s Revolving Commitment
Percentage of outstanding LOC Obligations shall not exceed such Revolving
Lender’s Revolving Commitment, and (ii) with
regard to the Lenders collectively, the sum of the outstanding Revolving Loans plus
outstanding Swingline Loans plus outstanding LOC Obligations shall not
exceed the Revolving Committed Amount. 
Revolving Loans may consist of Alternate Base Rate Loans or LIBOR Rate
Loans, or a combination thereof, as the Parent Borrower may request, and may be
repaid and reborrowed in accordance with the provisions hereof; provided,
however, Revolving Loans made on the Closing Date or on any of the three
Business Days following the Closing Date may only consist of Alternate Base
Rate Loans unless the Parent Borrower requests such Revolving Loans be made as
LIBOR Rate Loans in writing on the third Business Day prior to the Closing Date
and delivers a funding 

 

 

 

 

31

 

indemnity
letter acceptable to the Administrative Agent on or prior to such third
Business Day.  LIBOR Rate Loans shall be
made by each Revolving Lender at its LIBOR Lending Office and Alternate Base
Rate Loans at its Domestic Lending Office.

 

(b)           Revolving
Loan Borrowings.

 

(i)            Notice of Borrowing.  The Parent Borrower may request a Revolving
Loan borrowing by delivering a written Notice of Borrowing (or telephone notice
promptly confirmed in writing by delivery of a written Notice of Borrowing, which
delivery may be by facsimile) to the Administrative Agent not later than 11:00 a.m.
on the date of the requested borrowing in the case of Alternate Base Rate
Loans, and on the third Business Day prior to the date of the requested
borrowing in the case of LIBOR Rate Loans. 
Each such Notice of Borrowing shall be irrevocable and shall specify (A) that
a Revolving Loan is requested, (B) the date of the requested borrowing
(which shall be a Business Day), (C) the aggregate principal amount to be
borrowed, (D) the applicable Borrower or Borrowers with respect thereto
and (E) whether the borrowing shall be comprised of Alternate Base Rate
Loans, LIBOR Rate Loans or a combination thereof, and if LIBOR Rate Loans are
requested, the Interest Period(s) therefor.  If the Parent Borrower shall fail to specify
in any such Notice of Borrowing (1) an applicable Interest Period in the
case of a LIBOR Rate Loan, then such notice shall be deemed to be a request for
an Interest Period of one month, or (2) the Type of Revolving Loan
requested, then such notice shall be deemed to be a request for an Alternate
Base Rate Loan hereunder.  The
Administrative Agent shall give notice to each Revolving Lender promptly upon
receipt of each Notice of Borrowing, the contents thereof and each such
Revolving Lender’s share thereof.

 

(ii)           Minimum Amounts.  Each Revolving Loan that is an Alternate Base
Rate Loan shall be in a minimum aggregate amount of $250,000 and in integral
multiples of $50,000 in excess thereof (or the remaining amount of the
Revolving Committed Amount, if less). 
Each Revolving Loan that is a LIBOR Rate Loan shall be in a minimum
aggregate amount of $500,000 and in integral multiples of $250,000 in excess
thereof.

 

(iii)          Advances.  Each Revolving Lender will make its Revolving
Commitment Percentage of each Revolving Loan borrowing available to the
Administrative Agent for the account of the Borrower at the office of the
Administrative Agent specified in Section 9.2, or at such other office as
the Administrative Agent may designate in writing, by 1:00 p.m. on the
date specified in the applicable Notice of Borrowing in Dollars and in funds
immediately available to the Administrative Agent.  Such borrowing will then be made available to
the applicable Borrower by the Administrative Agent by crediting the account of
the Parent Borrower on the books of such office with the aggregate of the
amounts made available to the Administrative Agent by the Lenders and in like
funds as received by the Administrative Agent.

 

(c)           Repayment.
 Subject to the terms of this Agreement,
Revolving Loans may be borrowed, repaid and reborrowed during the Commitment
Period. The principal amount of all 

 

 

 

 

 

 

32

 

Revolving Loans
shall be due and payable in full on the Maturity Date unless accelerated in
accordance with the terms of Section 7.2.

 

(d)           Interest.  Subject to the provisions of Section 2.9,
Revolving Loans shall bear interest as follows:

 

(i)            Alternate Base Rate Loans.  During such periods as any Revolving Loans
shall be comprised of Alternate Base Rate Loans, each such Alternate Base Rate
Loan shall bear interest at a per annum rate equal to the sum of the Alternate
Base Rate plus the Applicable Percentage; and

 

(ii)           LIBOR Rate Loans.  During such periods as any Revolving Loans
shall be comprised of LIBOR Rate Loans, each such LIBOR Rate Loan shall bear
interest at a per annum rate equal to the sum of the LIBOR Rate plus the
Applicable Percentage.

 

Interest on Revolving
Loans shall be payable in arrears on each Interest Payment Date.

 

(e)           Revolving
Notes; Covenant to Pay.  The
Borrowers’ obligation to pay each Revolving Lender shall be evidenced by this
Agreement and, upon such Revolving Lender’s request, by a duly executed
promissory note of the Borrowers to such Revolving Lender in substantially the
form of Exhibit 2.1(e).  The
Borrowers covenant and agree to pay the Revolving Loans in accordance with the
terms of this Agreement.

 

Section 2.2             Term Loan Facility.

 

(a)           Term
Loan.  Subject to the terms and
conditions hereof and in reliance upon the representations and warranties set
forth herein, each Term Loan Lender severally, but not jointly, agrees to make
available to the Borrowers on the Closing Date such Term Loan Lender’s Term
Loan Commitment Percentage of a term loan in Dollars (the “Term Loan”)
in the aggregate principal amount of SIXTY MILLION DOLLARS
($60,000,000) (the “Term Loan Committed Amount”) for the
purposes set forth in Section 3.11. 
The Term Loan may consist of Alternate Base Rate Loans or LIBOR Rate
Loans, or a combination thereof, as the Parent Borrower may request; provided,
however, the Term Loan made on the Closing Date may consist of LIBOR
Rate Loans if the Parent Borrower requests such LIBOR Rate Loan in writing on
the third Business Day prior to the Closing Date and delivers a funding
indemnity letter acceptable to the Administrative Agent on or prior to such
third Business Day.  Amounts repaid on
the Term Loan may not be reborrowed.

 

(b)           Repayment of
Term Loan.  The principal amount of
the Term Loan shall be repaid in full on the Term Loan Maturity Date.

 

(c)           Interest on
the Term Loan.  Subject to the
provisions of Section 2.9, the Term Loan shall bear interest as follows,
unless accelerated sooner pursuant to Section 7.2:

 

                (i)            Alternate Base Rate Loans.  During such periods as the Term Loan shall be
comprised of Alternate Base Rate Loans, each such Alternate Base Rate Loan
shall 

 

 

33

 

bear interest at a per
annum rate equal to the sum of the Alternate Base Rate plus the
Applicable Percentage; and

 

                (ii)           LIBOR Rate Loans.  During such periods as the Term Loan shall be
comprised of LIBOR Rate Loans, each such LIBOR Rate Loan shall bear interest at
a per annum rate equal to the sum of the LIBOR Rate plus the Applicable
Percentage.

 

Interest on the Term Loan
shall be payable in arrears on each Interest Payment Date.

 

                (d)           Term Loan Notes; Covenant to Pay.  The Borrowers’ obligation to pay each Term
Loan Lender shall be evidenced by this Agreement and, upon such Term Loan
Lender’s request, by a duly executed promissory note of the Borrowers to such
Term Loan Lender in substantially the form of Exhibit 2.2(d).  The Borrowers covenant and agree to pay the
Term Loan in accordance with the terms of this Agreement.

 

                Section 2.3             Letter of Credit Subfacility.

 

                (a)           Issuance.  Subject to the terms and conditions hereof
and of the LOC Documents, if any, and any other terms and conditions that the
Issuing Lender may reasonably require, during the Commitment Period the Issuing
Lender shall issue, and the Revolving Lenders shall participate in, Letters of
Credit for the account of the Borrowers from time to time upon request by the
Parent Borrower in a form acceptable to the Issuing Lender; provided, however,
that (i) the aggregate amount of LOC Obligations shall not at any time
exceed TEN MILLION DOLLARS ($10,000,000) (the “LOC
Committed Amount”), (ii) the
sum of outstanding Revolving Loans plus outstanding Swingline Loans plus
outstanding LOC Obligations shall not at any time exceed the Revolving
Committed Amount, (iii) all
Letters of Credit shall be denominated in Dollars and (iv) Letters of Credit shall be issued for lawful
corporate purposes and may be issued as standby letters of credit, including in
connection with workers’ compensation and other insurance programs.  Except as otherwise expressly agreed upon by
all the Lenders, no Letter of Credit shall have an original expiry date more
than one year from the date of issuance; provided, however, so
long as no Default or Event of Default has occurred and is continuing and
subject to the other terms and conditions to the issuance of Letters of Credit
hereunder, the expiry dates of Letters of Credit may be extended annually or
periodically from time to time on the request of the Parent Borrower or by
operation of the terms of the applicable Letter of Credit to a date not more
than one year from the date of extension; provided, further, that
no Letter of Credit, as originally issued or as extended, shall have an expiry
date extending beyond the date that is thirty (30) days prior to the Revolving
Commitment Termination Date.  Each Letter
of Credit shall comply with the related LOC Documents; provided, however,
to the extent there is any discrepancy between a provision of any LOC Document
and a provision of this Agreement, the provision of this Agreement shall govern
the subject matter thereof.  The issuance
and expiry date of each Letter of Credit shall be a Business Day.  Wachovia shall be the Issuing Lender on all
Letters of Credit.  The Existing Letters
of Credit shall, as of the Closing Date, be deemed to have been issued pursuant
hereto as “Letters of Credit.”  The
Borrowers’ reimbursement obligations in respect of each Existing Letter of
Credit, and each Revolving Lender’s participation obligations in connection
therewith, shall be governed by the terms of this Credit Agreement.

 

 

 

 

 

 

34

 

                (b)           Notice and Reports.  The request for the issuance of a Letter of
Credit shall be submitted by the Parent Borrower to the Issuing Lender at least
three (3) Business Days prior to the requested date of issuance.  The Issuing Lender will promptly upon the
request of any Revolving Lender or the Administrative Agent provide to such
Revolving Lender or to the Administrative Agent for dissemination to the
Revolving Lenders, as applicable, a detailed report specifying the Letters of
Credit that are then issued and outstanding and any activity with respect
thereto which may have occurred since the date of any prior report, and
including therein, among other things, the account party, the beneficiary, the
face amount and the expiry date as well as any payments or expirations that may
have occurred.  The Issuing Lender will
further provide to the Administrative Agent promptly upon request copies of the
Letters of Credit.  The Issuing Lender
will provide to the Administrative Agent promptly upon request a summary report
of the nature and extent of LOC Obligations then outstanding.

 

                (c)           Participations.  Each Revolving Lender shall be deemed to have
purchased without recourse a risk participation from the Issuing Lender in each
Letter of Credit and the obligations arising thereunder and any collateral
relating thereto, in each case in an amount equal to its Revolving Commitment
Percentage of the obligations under such Letter of Credit and shall absolutely,
unconditionally and irrevocably assume, as primary obligor and not as surety,
and be obligated to pay to the Issuing Lender therefor and discharge when due,
its Revolving Commitment Percentage of the obligations arising under such
Letter of Credit; provided that any Person that becomes a Revolving
Lender after the Closing Date shall be deemed to have purchased a risk
participation in all outstanding Letters of Credit on the date it becomes a
Revolving Lender hereunder and any Letter of Credit issued on or after such
date, in each case in accordance with the foregoing terms.  Without limiting the scope and nature of each
Revolving Lender’s participation in any Letter of Credit, to the extent that
the Issuing Lender has not been reimbursed as required hereunder or under any
LOC Document, each such Revolving Lender shall pay to the Issuing Lender its
Revolving Commitment Percentage of such unreimbursed drawing in same day funds
on the day of notification by the Issuing Lender of an unreimbursed drawing
pursuant to and in accordance with the provisions of subsection (d) hereof.  The obligation of each Revolving Lender to so
reimburse the Issuing Lender shall be absolute and unconditional and shall not
be affected by the occurrence of a Default, an Event of Default or any other
occurrence or event.  Any such
reimbursement shall not relieve or otherwise impair the obligation of the Borrowers
jointly and severally to reimburse the Issuing Lender under any Letter of
Credit, together with interest as hereinafter provided.

 

                (d)           Reimbursement.  In the event of any drawing under any Letter
of Credit, the Issuing Lender will promptly notify the Parent Borrower and the
Administrative Agent.  The Borrowers
jointly and severally shall reimburse the Issuing Lender on the day of drawing
under any Letter of Credit if notified prior to 3:00 p.m. on a Business
Day or, if after 3:00 p.m. on the following Business Day (either with the
proceeds of a Revolving Loan obtained hereunder or otherwise) in same day funds
as provided herein or in the LOC Documents. 
If the Borrowers shall fail to reimburse the Issuing Lender as provided
herein, the unreimbursed amount of such drawing shall bear interest at a per
annum rate equal to the ABR Default Rate for so long as such amount shall be
unreimbursed.  Unless the Borrowers shall
immediately notify the Issuing Lender and the Administrative Agent of their
intent to otherwise reimburse the Issuing Lender, 

 

 

 

 

 

 

 

35

 

the Borrowers
shall be deemed to have requested a Revolving Loan in the amount of the drawing
as provided in subsection (e) hereof, the proceeds of which will be used
to satisfy the reimbursement obligations. 
The Borrowers’ reimbursement obligations hereunder shall be absolute and
unconditional under all circumstances irrespective of any rights of set-off,
counterclaim or defense to payment any Borrower may claim or have against the
Issuing Lender, the Administrative Agent, the Lenders, the beneficiary of the
Letter of Credit drawn upon or any other Person, including without limitation
any defense based on any failure of any Borrower to receive consideration or
the legality, validity, regularity or unenforceability of the Letter of
Credit.  The Issuing Lender will promptly
notify the other Revolving Lenders of the amount of any unreimbursed drawing
and each Revolving Lender shall promptly pay to the Administrative Agent for
the account of the Issuing Lender in Dollars and in immediately available
funds, the amount of such Revolving Lender’s Revolving Commitment Percentage of
such unreimbursed drawing.  Such payment
shall be made on the Business Day such notice is received by such Revolving
Lender from the Issuing Lender if such notice is received at or before 2:00 p.m.,
otherwise such payment shall be made at or before 12:00 Noon on the Business
Day next succeeding the Business Day such notice is received.  If such Revolving Lender does not pay such
amount to the Issuing Lender in full on the date such amount is due, such
Revolving Lender shall, on demand, pay to the Administrative Agent for the
account of the Issuing Lender interest on the unpaid amount during the period
from the date such amount is due until such Revolving Lender pays such amount
to the Issuing Lender in full at a rate per annum equal to, if paid within two (2) Business
Days of the date such amount is due, the Federal Funds Effective Rate and thereafter
at a rate equal to the Alternate Base Rate. 
Each Revolving Lender’s obligation to make such payment to the Issuing
Lender, and the right of the Issuing Lender to receive the same, shall be
absolute and unconditional, shall not be affected by any circumstance
whatsoever and without regard to the termination of this Agreement or the
Commitments hereunder, the existence of a Default or Event of Default or the
acceleration of the Borrowers’ Obligations hereunder and shall be made without
any offset, abatement, withholding or reduction whatsoever.

 

                (e)           Repayment with Revolving Loans.  On any day on which the Borrowers shall have
requested, or been deemed to have requested, a Revolving Loan to reimburse a
drawing under a Letter of Credit, the Administrative Agent shall give notice to
the Revolving Lenders that a Revolving Loan has been requested or deemed
requested in connection with a drawing under a Letter of Credit, in which case
a Revolving Loan borrowing comprised entirely of Alternate Base Rate Loans
(each such borrowing, a “Mandatory LOC Borrowing”) shall be immediately
made (without giving effect to any termination of the Commitments pursuant to Section 7.2)
pro  rata based on each Revolving Lender’s respective Revolving
Commitment Percentage (determined before giving effect to any termination of
the Commitments pursuant to Section 7.2). 
The proceeds of such Mandatory LOC Borrowing shall be paid directly to
the Issuing Lender for application to the respective LOC Obligations.  Each Revolving Lender hereby irrevocably
agrees to make such Revolving Loans on the day such notice is received by the
Revolving Lenders from the Administrative Agent if such notice is received at
or before 2:00 p.m., otherwise such payment shall be made at or before
12:00 Noon on the Business Day next succeeding the day such notice is received,
in each case notwithstanding (i) the amount of Mandatory LOC
Borrowing may not comply with the minimum amount (or integral amount in excess
thereof) for borrowings of Revolving Loans otherwise required hereunder, (ii) whether 

 

 

 

 

 

 

 

36

 

any conditions
specified in Section 4.2 are then satisfied, (iii) whether a Default or an Event of Default then
exists, (iv) failure of any
such request or deemed request for Revolving Loan to be made by the time
otherwise required in Section 2.1(b), (v) the date of such Mandatory
LOC Borrowing, or (vi) any reduction in the Revolving Committed Amount
after any such Letter of Credit may have been drawn upon.  In the event that any Mandatory LOC Borrowing
cannot for any reason be made on the date otherwise required above (including,
without limitation, as a result of the commencement of a proceeding under the
Bankruptcy Code), then each such Revolving Lender hereby agrees that it shall
forthwith fund (on the Business Day notice to fund is received by such
Revolving Lender from the Issuing Lender if such notice is received at or
before 2:00 p.m., otherwise such payment shall be made at or before 12:00
Noon on the Business Day next succeeding the Business Day such notice is
received) its Participation Interests in the outstanding LOC Obligations (as
adjusted for any payments received from the Borrowers on or after such date and
prior to such purchase); provided, further, that in the event any
Revolving Lender shall fail to fund its Participation Interest on the date
required above, then the amount of such Revolving Lender’s unfunded
Participation Interest therein shall bear interest payable by such Revolving
Lender to the Issuing Lender upon demand, at the rate equal to, if paid within
two (2) Business Days of such date, the Federal Funds Effective Rate, and
thereafter at a rate equal to the Alternate Base Rate.

 

                (f)            Modification, Extension.  The issuance of any supplement, modification,
amendment, renewal, or extension to any Letter of Credit shall, for purposes
hereof, be treated in all respects the same as the issuance of a new Letter of
Credit hereunder.

 

                (g)           ISP98.  Unless otherwise expressly agreed by the
Issuing Lender and the Parent Borrower, when a Letter of Credit is issued, the rules of
the “International Standby Practices 1998,” published by the Institute of
International Banking Law & Practice (or such later version thereof as
may be in effect at the time of issuance) shall apply to each standby Letter of
Credit.

 

                (h)           Conflict with LOC Documents.  In the event of any conflict between this
Agreement and any LOC Document (including any letter of credit application and
any LOC Documents relating to the Existing Letters of Credit), this Agreement
shall control.

 

                Section 2.4             Swingline Loan Subfacility.

 

                (a)           Swingline Commitment.  During the Commitment Period, subject to the
terms and conditions hereof, the Swingline Lender, in its individual capacity,
agrees to make certain revolving credit loans to the Borrowers (each a “Swingline
Loan” and, collectively, the “Swingline Loans”) for the purposes
hereinafter set forth; provided, however, (i) the aggregate
amount of Swingline Loans outstanding at any time shall not exceed FIVE MILLION DOLLARS ($5,000,000) (the “Swingline
Committed Amount”), and (ii) the
sum of the outstanding Revolving Loans plus outstanding Swingline Loans plus
outstanding LOC Obligations shall not exceed the Revolving Committed
Amount.  Swingline Loans hereunder may be
repaid and reborrowed in accordance with the provisions hereof.

 

 

 

 

 

 

 

37

 

                (b)           Swingline Loan Borrowings.

 

(i)            Notice
of Borrowing and Disbursement.  The
Swingline Lender will make Swingline Loans available to any Borrower on any
Business Day upon delivery of a Notice of Borrowing (or telephone notice
promptly confirmed in writing by delivery of a written Notice of Borrowing,
which delivery may be by facsimile) by the Borrower to the Administrative Agent
not later than 1:00 P.M. on such Business Day.  Swingline Loan borrowings hereunder shall be
made in minimum amounts of $100,000 and in integral amounts of $50,000 in
excess thereof.  Such borrowing will then
be made available to the Borrower by the Swingline Lender by 3:00 P.M. on
the date specified in the applicable Notice of Borrowing (by the end of
business Eastern Time on such date) by crediting the account of the Borrower on
the books of such office with the amount made available to the Administrative
Agent by the Swingline Lender and in like funds as received by the
Administrative Agent

 

(ii)           Repayment
of Swingline Loans.  Each Swingline
Loan borrowing shall be due and payable on the earlier of (A) the seventh
day after the date upon which the aggregate amount of Swingline Loan borrowings
exceeds $500,000 and (B) the Maturity Date.  The Swingline Lender may, at any time, in its
sole discretion, by written notice to the Parent Borrower and the
Administrative Agent, demand repayment of its Swingline Loans by way of a
Revolving Loan borrowing, in which case the Borrowers shall be deemed to have
requested a Revolving Loan borrowing comprised entirely of Alternate Base Rate
Loans in the amount of such Swingline Loans; provided, however,
that, in the following circumstances, any such demand shall also be deemed to
have been given one Business Day prior to each of (w) the Maturity Date, (x) the occurrence of any Event of
Default described in Section 7.1(e), (y) upon
acceleration of the Borrowers’ Obligations hereunder, whether on account of an
Event of Default described in Section 7.1(e) or any other Event of
Default, and (z) the exercise
of remedies in accordance with the provisions of Section 7.2 hereof (each
such Revolving Loan borrowing made on account of any such deemed request
therefor as provided herein being hereinafter referred to as “Mandatory
Swingline Borrowing”).  Each Revolving
Lender hereby irrevocably agrees to make such Revolving Loans on the Business
Day notice to fund is received by such Revolving Lender from the Swingline
Lender if such notice is received at or before 2:00 p.m., otherwise such
payment shall be made at or before 12:00 Noon on the Business Day next
succeeding the Business Day such notice is received, notwithstanding (1) the
amount of Mandatory Swingline Borrowing may not comply with the minimum amount
for borrowings of Revolving Loans otherwise required hereunder, (2) whether
any conditions specified in Section 4.2 are then satisfied, (3) whether
a Default or an Event of Default then exists, (4) failure of any such
request or deemed request for Revolving Loans to be made by the time otherwise
required in Section 2.1(b)(i), (5) the date of such Mandatory
Swingline Borrowing, or (6) any reduction in the Revolving Committed
Amount or termination of the Revolving Commitments immediately prior to such
Mandatory Swingline Borrowing or contemporaneously therewith.  In the event that any Mandatory Swingline
Borrowing cannot for any reason be made on the date otherwise required above
(including, without limitation, as a result of the commencement of a proceeding
under the Bankruptcy Code), then each Revolving Lender hereby agrees that it
shall 

 

 

 

 

 

 

38

 

forthwith purchase (on
the Business Day notice to fund is received by such Revolving Lender from the
Issuing Lender if such notice is received at or before 2:00 p.m.,
otherwise such payment shall be made at or before 12:00 Noon on the Business
Day next succeeding the Business Day such notice is received) from the
Swingline Lender such participations in the outstanding Swingline Loans (as
adjusted for any payments received from the Borrowers on or after such date and
prior to such purchase) as shall be necessary to cause each such Revolving
Lender to share in such Swingline Loans ratably based upon its respective
Revolving Commitment Percentage (determined before giving effect to any
termination of the Commitments pursuant to Section 7.2); provided
that (I) all interest payable on the Swingline Loans shall be for the
account of the Swingline Lender until the date as of which the respective
participation is purchased, and (II) at the time any purchase of
participations pursuant to this sentence is actually made, the purchasing
Revolving Lender shall be required to pay to the Swingline Lender interest on
the principal amount of such participation purchased for each day from and
including the date on which such purchase is required hereunder to but
excluding the date of payment for such participation, at the rate equal to, if
paid within two (2) Business Days of the date on which such purchase is
required hereunder, the Federal Funds Effective Rate, and thereafter at a rate
equal to the Alternate Base Rate.

 

                (c)           Interest on Swingline Loans.  Subject to the provisions of Section 2.9,
Swingline Loans shall bear interest at a per annum rate equal to the Alternate
Base Rate plus the Applicable Percentage for Revolving Loans that are
Alternate Base Rate Loans.  Interest on
Swingline Loans shall be payable in arrears on each Interest Payment Date.

 

                (d)           Swingline
Note; Covenant to Pay.  The Swingline
Loans shall be evidenced by this Agreement and, upon request of the Swingline
Lender, by a duly executed promissory note of the Borrowers in favor of the
Swingline Lender in the original amount of the Swingline Committed Amount and
substantially in the form of Exhibit 2.4(d).  The Borrowers covenant and agree to pay the
Swingline Loans in accordance with the terms of this Agreement.

 

                Section 2.5             Incremental Facility.

 

                Subject to the terms and conditions set forth herein,
the Borrowers shall have the right, at any time up to three (3) years
after the Closing Date, to incur additional Indebtedness under this Credit
Agreement in the form of one or more increases to the Revolving Committed
Amount and/or additional term loan facilities (each an “Incremental Facility”)
in an aggregate amount of up to $100,000,000. 
The following terms and conditions shall apply to each Incremental
Facility:

 

(a)           the loans made
under any such Incremental Facility (each an “Additional Loan”) shall
constitute Borrowers’ Obligations and will be secured and guaranteed with the
other Loans on a pari passu basis;

 

(b)           the weighted
average life and final maturity applicable to any such Incremental Facility
shall be determined at the time such Incremental Facility is made available; provided
that (i) if such Additional Loan is a Term Loan (an “Additional Term
Loan”) (A) such 

 

 

 

 

 

39

 

Incremental Facility
shall mature no earlier than the Term Loan Maturity Date and (B) the
weighted average life to maturity of the Incremental Facility shall be longer
than or substantially similar to the weighted average life to maturity of the
Term Loan and (ii) if such Incremental Facility is used to increase the
Revolving Committed Amount, such Incremental Facility shall mature no earlier than
the Revolving Commitment Termination Date;

 

(c)           should the
interest rate margin on the then-current Term Loans or Revolving Loans, as
applicable, be less than the interest rate margin on any Incremental Facility,
the interest rate margin for the then-current Term Loans and Revolving Loans,
as applicable, will be increased and/or additional fees will be paid to the
existing Term Loan Lenders and/or Revolving Loan Lenders, as applicable, such
that the interest rate margin on the then-current Term Loans or Revolving Loans
will be 0.125% less than the interest rate margin on any Incremental Facility
(taking into account upfront fees payable to the Lenders making any Incremental
Facility);

 

(d)           any such
Incremental Facility shall be entitled to the same voting rights as the
existing Loans and shall be entitled to receive proceeds of prepayments on the
same basis as the Term Loans or the Revolving Loans, as applicable;

 

(e)           any such
Incremental Facility shall be obtained from existing Lenders or from other banks,
financial institutions or investment funds, in each case in accordance with the
terms set forth below;

 

(f)            the Borrowers
may borrow up to three Incremental Facilities and each Incremental Facility
shall be in a minimum principal amount of $25,000,000;

 

(g)           the proceeds of
any Additional Loan will be used to finance capital expenditures and working
capital and other general corporate purposes, including Permitted Acquisitions;

 

(h)           the conditions to
Extensions of Credit in Section 4.2 shall have been satisfied; and

 

(i)            the
Administrative Agent shall have received from the Borrower updated financial
projections and an officer’s certificate, in each case in form and substance
satisfactory to the Administrative Agent, demonstrating that, after giving
effect to any such Incremental Facility, the Borrower will be in compliance
with the financial covenants set forth in Section 5.9.

 

Participation in any such
Incremental Facility hereunder shall be offered first to each of the existing
Lenders, but each such Lender shall have no obligation to provide all or any
portion of such Incremental Facility.  If
the amount of the Incremental Facility requested by the Borrower shall exceed
the commitments that the existing Lenders are willing to provide with respect
to such Incremental Facility, then the Borrower may invite other banks,
financial institutions and investment funds reasonably acceptable to the
Administrative Agent to join this Credit Agreement as Lenders hereunder for the
portion of such Incremental Facility not taken by existing Lenders; provided
that such other banks, financial institutions and investment funds shall enter
into such joinder agreements to give effect thereto as the Administrative Agent
and the Borrower may reasonably request. 
The Administrative Agent is authorized to enter into, on 

 

 

 

 

 

40

 

behalf of the Lenders,
any amendment to this Credit Agreement or any other Credit Document as may be
reasonably necessary to incorporate the terms of any new Incremental Facility
therein.

 

                Section 2.6             Fees.

 

                (a)           Commitment Fee.  In consideration of the Revolving
Commitments, the Borrowers jointly and severally agree to pay to the
Administrative Agent, for the ratable benefit of the Revolving Lenders, during
the Commitment Period, a commitment fee (the “Commitment Fee”) in an
amount equal to the Applicable Percentage per annum on the average daily unused
amount of the Revolving Committed Amount. 
For purposes of computation of the Commitment Fee, LOC Obligations shall
be considered usage of the Revolving Committed Amount but Swingline Loans shall
not be considered usage of the Revolving Committed Amount.  The Commitment Fee shall be payable quarterly
in arrears on the 15th day following the last day of each calendar quarter for
the prior calendar quarter.

 

                (b)           Letter of Credit Fees.  In consideration of the LOC Commitments, the
Borrowers jointly and severally agree to pay to the Issuing Lender, for the
ratable benefit of the Revolving Lenders, a fee (the “Letter of Credit Fee”)
equal to the Applicable Percentage per annum on the average daily maximum
amount available to be drawn under each Letter of Credit from the date of
issuance to the date of expiration.  In
addition to such Letter of Credit Fee, the Issuing Lender may charge, and
retain for its own account without sharing by the other Lenders, an additional
fronting fee (the “Fronting Fee”) of one-fourth of one percent (1/4%)
per annum on the average daily maximum amount available to be drawn under each
such Letter of Credit issued by it.  The
Issuing Lender shall promptly pay over to the Administrative Agent for the
ratable benefit of the Revolving Lenders (including the Issuing Lender in its
capacity as a Revolving Lender), the Letter of Credit Fee.  The Letter of Credit Fee shall be payable
quarterly in arrears on the 15th day following the last day of each calendar
quarter for such calendar quarter.

 

                (c)           Issuing Lender Fees.  In addition to the Letter of Credit Fees
payable pursuant to subsection (b) hereof, the Borrowers jointly and
severally shall pay to the Issuing Lender, for its own account without sharing
by the other Lenders, the reasonable and customary charges from time to time of
the Issuing Lender with respect to the amendment, transfer, administration,
cancellation and conversion of, and drawings under, such Letters of Credit
(collectively, the “Issuing Lender Fees”).

 

                (d)           Administrative Fee.  The Borrowers jointly and severally agree to
pay to the Administrative Agent the annual administrative fee as described in
the Fee Letter.

 

                Section 2.7             Commitment Reductions.

 

                (a)           Voluntary Reductions.  The Borrowers shall have the right to
terminate or permanently reduce the unused portion of the Revolving Committed
Amount at any time or from time to time upon not less than three (3) Business
Days’ prior notice from the Parent Borrower to the Administrative Agent (which
shall notify the Lenders thereof as soon as practicable) of each such
termination or reduction, which notice shall specify the effective date thereof
and the amount of any such reduction that shall be in a minimum amount of
$500,000 or a whole 

 

 

 

 

41

 

multiple of
$250,000 in excess thereof and shall be irrevocable and effective upon receipt
by the Administrative Agent; provided that no such reduction or
termination shall be permitted if after giving effect thereto, and to any
prepayments of the Loans made on the effective date thereof, the sum of the
outstanding Revolving Loans plus outstanding Swingline Loans plus
outstanding LOC Obligations would exceed the Revolving Committed Amount.

 

                (b)           Maturity Date.  The Revolving Commitment, the Swingline
Commitment and the LOC Commitment shall automatically terminate on the Maturity
Date.

 

                Section 2.8             Prepayments.

 

                (a)           Optional Prepayments.  The Borrowers shall have the right to prepay
Loans in whole or in part from time to time; provided, however,
that (i) each partial prepayment of an Alternate Base Rate Loan shall be
in a minimum principal amount of $250,000 and integral multiples of $50,000 in
excess thereof; provided that each partial prepayment of a Swingline
Loan shall be in a minimum principal amount of $100,000 and integral multiples
of $50,000 in excess thereof; and (ii) each partial prepayment of a LIBOR
Rate Loan shall be in a minimum principal amount of $500,000 and integral
multiples of $100,000 in excess thereof. 
The Parent Borrower shall give three Business Days’ irrevocable notice
in the case of LIBOR Rate Loans and one Business Day’s irrevocable notice in
the case of Alternate Base Rate Loans to the Administrative Agent (which shall
notify the Lenders thereof as soon as practicable).  Each prepayment pursuant to this Section 2.8(a) shall
be applied to the outstanding Loans as the Parent Borrower may elect; provided,
that (i) any prepayment of the Term Loan shall be applied pro rata to the
remaining Term Loan amortization payments set forth in Section 2.2(b), (ii) any
prepayment of an Additional Term Loan shall be applied pro rata to the
remaining amortization payments (if any) of such Additional Term Loan and (iii) each
Lender shall receive its pro rata share (except with respect to prepayments of
Swingline Loans) of any such prepayment based on its Revolving Commitment
Percentage, Term Loan Commitment Percentage or Commitment Percentage with
respect to such Additional Loan, as applicable. 
Within the parameters of the applications set forth above, prepayments
shall be applied first to Alternate Base Rate Loans and then to LIBOR Rate Loans
in the order of Interest Period maturities as the Parent Borrower may elect.

 

                All prepayments under this Section 2.8(a) shall
be subject to Section 2.16, but otherwise without premium or penalty.  Interest on the principal amount prepaid
shall be payable on the next occurring Interest Payment Date that would have
occurred had such Loan not been prepaid or, at the request of the
Administrative Agent, interest on the principal amount prepaid shall be payable
on any date that a prepayment is made hereunder through the date of
prepayment.  Amounts prepaid on the
Revolving Loans and the Swingline Loans may be reborrowed in accordance with
the terms hereof.  Amounts prepaid on the
Term Loan or an Additional Term Loan may not be reborrowed.

 

                (b)           Mandatory Prepayments.

 

                (i)            Revolving
Committed Amount.  If at any time
after the Closing Date, the sum of the outstanding Revolving Loans plus
outstanding Swingline Loans plus  

 

 

 

 

 

42

 

outstanding LOC Obligations shall exceed the Revolving Committed
Amount, the Borrowers immediately shall prepay the Swingline Loans and the
Revolving Loans in an amount sufficient to eliminate such excess (such
prepayment to be applied as set forth in clause (vi) below).

 

                (ii)           Asset Dispositions. Promptly
following one or more Asset Dispositions in excess of $1,000,000 in the
aggregate in any fiscal year (excluding for purposes hereof superfluous,
obsolete or uneconomic property and/or assets acquired in connection with any
Permitted Acquisition, in an aggregate amount not to exceed $10,000,000 during
the term of this Agreement, to the extent such property and/or assets are sold
or disposed of within 270 days after the consummation of such Permitted
Acquisition), the Borrowers shall prepay the Loans and/or cash collateralize
the LOC Obligations (to the extent required by clause (vi) below) in an
aggregate amount equal to the Net Cash Proceeds in excess of $1,000,000 derived
from such Asset Dispositions (such prepayment to be applied as set forth in
clause (vi) below); provided, however, that such Net Cash
Proceeds shall not be required to be so applied to the extent the Parent
Borrower delivers to the Administrative Agent a certificate stating that the
Borrowers intend to use such Net Cash Proceeds to acquire fixed or capital
assets in replacement of the disposed assets within 180 days of the receipt of
such Net Cash Proceeds, it being expressly agreed that any Net Cash Proceeds
not so reinvested shall be applied to prepay the Loans and/or cash
collateralize the LOC Obligations (to the extent required by clause (vi) below)
immediately following the 180th day occurring after the receipt by a Borrower
of such Net Cash Proceeds (such prepayment to be applied as set forth in clause
(vi) below).

 

                (iii)          Debt Issuance.  Immediately upon receipt by any Borrower or
any of its Subsidiaries of proceeds from any Debt Issuance, the Borrowers shall
prepay the Loans and/or cash collateralize the LOC Obligations (to the extent
required by clause (vi) below) in an aggregate amount equal to one hundred
percent (100%) of the Net Cash Proceeds of such Debt Issuance to the Lenders
(such prepayment to be applied as set forth in clause (vi) below).

 

                (iv)          Recovery Event.  To the extent cash proceeds received in connection
with all Recovery Events in any fiscal year exceeds $500,000 in the aggregate
and are not used to acquire fixed or capital assets in replacement of the
assets subject to such Recovery Events within 180 days of the receipt of such
cash proceeds, immediately following the 180th day occurring after the receipt
of such cash proceeds, the Borrowers shall prepay the Loans and/or cash
collateralize the LOC Obligations (to the extent required by clause (vi) below)
in an aggregate amount equal to one hundred percent (100%) of such cash
proceeds (such prepayment to be applied as set forth in clause (vi) below).

 

                (v)           [Reserved]

 

                (vi)          Application of Mandatory
Prepayments.  All amounts required to
be paid pursuant to this Section 2.8(b) shall be applied as follows: (A) with
respect to all amounts prepaid pursuant to Section 2.8(b)(i), (1) first
to the outstanding Swingline Loans (without any reduction in the Revolving
Commitments), (2) second to the outstanding 

 

 

 

 

 

 

43

 

Revolving Loans
(without any reduction in the Revolving Commitments) and (3) third to a
cash collateral account in respect of outstanding LOC Obligations, (B) with
respect to all amounts prepaid pursuant to Sections 2.8(b)(ii) through
(v), (1) first, pro rata to any remaining Additional Term Loan
amortization payments or scheduled principal payments; provided, however,
promptly upon receipt of notice of such prepayment, one or more holders of any
Additional Term Loan may decline to accept a mandatory prepayment under Section 2.8(b)(ii) through
(v), in which case such declined payments shall be allocated pro rata among the
Additional Term Loans, if any, held by Lenders accepting such prepayments until
the Additional Term Loans, if any, of such Lenders are paid in full, with any
remaining amount of such prepayment applied in accordance with clauses (B)(2), (3) and
(4) below, (2) second to the outstanding Swingline Loans (without a
corresponding reduction in the Revolving Commitments), (3) third to the outstanding
Revolving Loans (without a corresponding reduction in the Revolving
Commitments) and (4) fourth to a cash collateral account in respect of
outstanding LOC Obligations if any Default or Event of Default shall then
exist; provided that if a Default or an Event of Default shall then
exist, any cash collateral remaining in such cash collateral account at the
time such Default or Event of Default is cured or waived shall be applied as
provided in clauses (B)(1) and (B)(2) above (with any remaining amount
paid over to the Parent Borrower). 
Within the parameters of the applications set forth above, prepayments
shall be applied first to Alternate Base Rate Loans and then to LIBOR Rate
Loans in the order of Interest Period maturities as the Parent Borrower may
elect.  All prepayments under this Section 2.8(b) shall
be subject to Section 2.16 and be accompanied by interest on the principal
amount prepaid through the date of prepayment.

 

                (c)           Bank Product Obligations
Unaffected.  Any repayment or
prepayment made pursuant to this Section 2.8 shall not affect the
Borrowers’ obligation to continue to make payments under any Bank Product,
which shall remain in full force and effect notwithstanding such repayment or
prepayment, subject to the terms of such Bank Product.

 

                Section 2.9             Default Rate and Payment Dates.

 

                Upon the occurrence, and during
the continuance, of an Event of Default, at the election of the Required
Lenders, the principal of and, to the extent permitted by law, interest on the
Loans and any other amounts owing hereunder or under the other Credit Documents
shall bear interest, payable on demand (and monthly, if demand is not made), at
a per annum rate 2% greater than the rate that would otherwise be applicable
(or if no rate is applicable, whether in respect of interest, fees or other
amounts, then at the ABR Default Rate).

 

                Section 2.10           Conversion and Continuation
Options.

 

                (a)           The Borrowers may elect from time to
time to convert Alternate Base Rate Loans to LIBOR Rate Loans by the Parent
Borrower giving the Administrative Agent at least three Business Days’ prior
irrevocable written notice of such election. 
In addition, subject to Section 2.16, the Borrowers may elect from
time to time to convert LIBOR Rate Loans to Alternate Base Rate Loans by the
Parent Borrower giving the Administrative Agent irrevocable written notice by
11:00 a.m. on the proposed date of conversion.  A form of Notice of Conversion/Continuation 

 

 

 

 

 

 

44

 

is attached as Exhibit 2.10.  If the date upon which an Alternate Base Rate
Loan is to be converted to a LIBOR Rate Loan is not a Business Day, then such
conversion shall be made on the next succeeding Business Day and during the
period from such last day of an Interest Period to such succeeding Business Day
such Loan shall bear interest as if it were an Alternate Base Rate Loan.  If the date upon which a LIBOR Rate Loan is
to be converted to an Alternate Base Rate Loan is not a Business Day, then such
conversion shall be made on the next succeeding Business Day and during the
period from such last day of an Interest Period to such succeeding Business Day
such Loan shall bear interest as if it were an Alternate Base Rate Loan.  All or any part of outstanding Alternate Base
Rate Loans may be converted as provided herein; provided that (i) no
Loan may be converted into a LIBOR Rate Loan when any Default or Event of
Default has occurred and is continuing and (ii) partial
conversions shall be in an aggregate principal amount of $500,000 or a whole
multiple of $250,000 in excess thereof.

 

                (b)           Any LIBOR Rate Loans may be continued
as such upon the expiration of an Interest Period with respect thereto by
compliance by the Borrowers with the notice provisions contained in Section 2.10(a);
provided, that no LIBOR Rate Loan may be continued as such when any
Default or Event of Default has occurred and is continuing, in which case such
Loan shall be automatically converted to an Alternate Base Rate Loan at the end
of the applicable Interest Period with respect thereto.  If the Parent Borrower shall fail to give
timely notice of an election to continue a LIBOR Rate Loan, or the continuation
of LIBOR Rate Loans is not permitted hereunder, such LIBOR Rate Loans shall be
automatically converted to Alternate Base Rate Loans at the end of the
applicable Interest Period with respect thereto.

 

                Section 2.11           Computation of Interest and Fees.

 

                (a)           Interest payable hereunder with
respect to Alternate Base Rate Loans based on the Prime Rate shall be calculated
on the basis of a year of 365 days (or 366 days, as applicable) for the actual
days elapsed.  All other fees, interest
and all other amounts payable hereunder shall be calculated on the basis of a
360 day year for the actual days elapsed. 
The Administrative Agent shall as soon as practicable notify the Parent
Borrower and the Lenders of each determination of a LIBOR Rate on the Business
Day of the determination thereof.  Any
change in the interest rate on a Loan resulting from a change in the Alternate
Base Rate shall become effective as of the opening of business on the day on
which such change in the Alternate Base Rate shall become effective.  The Administrative Agent shall as soon as
practicable notify the Borrower and the Lenders of the effective date and the
amount of each such change.

 

                (b)           Each determination of an interest
rate by the Administrative Agent pursuant to any provision of this Agreement
shall be conclusive and binding on the Borrowers and the Lenders in the absence
of manifest error.  The Administrative
Agent shall, at the request of the Parent Borrower, deliver to the Parent
Borrower a statement showing the computations used by the Administrative Agent
in determining any interest rate.

 

(c)           It is the intent
of the Lenders and the Borrowers to conform to and contract in strict
compliance with applicable usury law from time to time in effect.  All agreements between the Lenders and the
Borrowers are hereby limited by the provisions of this paragraph which shall
override and control all such agreements, whether now existing or hereafter
arising and whether 

 

 

 

 

45

 

written or oral.  In no way, nor in any event or contingency
(including but not limited to prepayment or acceleration of the maturity of any
Borrowers’ Obligations), shall the interest taken, reserved, contracted for,
charged, or received under this Credit Agreement, under the Notes or otherwise,
exceed the maximum nonusurious amount permissible under applicable law.  If, from any possible construction of any of
the Credit Documents or any other document, interest would otherwise be payable
in excess of the maximum nonusurious amount, any such construction shall be
subject to the provisions of this paragraph and such interest shall be
automatically reduced to the maximum nonusurious amount permitted under
applicable law, without the necessity of execution of any amendment or new
document.  If any Lender shall ever
receive anything of value that is characterized as interest on the Loans under
applicable law and that would, apart from this provision, be in excess of the
maximum nonusurious amount, an amount equal to the amount that would have been
excessive interest shall, without penalty, be applied to the reduction of the
principal amount owing on the Loans and not to the payment of interest, or
refunded to the Borrowers or the other payor thereof if and to the extent such
amount which would have been excessive exceeds such unpaid principal amount of
the Loans.  The right to demand payment
of the Loans or any other Indebtedness evidenced by any of the Credit Documents
does not include the right to receive any interest that has not otherwise
accrued on the date of such demand, and the Lenders do not intend to charge or
receive any unearned interest in the event of such demand.  All interest paid or agreed to be paid to the
Lenders with respect to the Loans shall, to the extent permitted by applicable
law, be amortized, prorated, allocated, and spread throughout the full stated
term (including any renewal or extension) of the Loans so that the amount of
interest on account of such Indebtedness does not exceed the maximum
nonusurious amount permitted by applicable law.

 

                Section 2.12           Pro Rata Treatment and Payments.

 

                (a)           Allocation of Payment Before
Exercise of Remedies.  Each borrowing
of Revolving Loans and any reduction of the Revolving Commitments shall be made
pro  rata according to the respective Revolving Commitment
Percentages of the Lenders.  Subject to Section 2.12(b),
each payment (other than prepayments) of principal or interest under this
Agreement or any Note shall be applied, first, to any fees then due and owing
by the Borrowers pursuant to Section 2.6, second, to interest then due and
owing hereunder and under the Notes and, third, to principal then due and owing
hereunder and under the Notes.  Each
optional prepayment of the principal of the Loans shall be applied in
accordance with Section 2.8(a) and each mandatory prepayment of the
principal of the Loans shall be applied in accordance with Section 2.8(b).  All payments (including prepayments) to be
made by the Borrowers on account of principal, interest and fees (i) shall
be made without defense, set-off or counterclaim (except as provided in Section 2.18(b)),
(ii) shall be made to the Administrative Agent for the account of the
Lenders at the Administrative Agent’s office specified in such Lender’s
Administrative Questionnaire in Dollars and in immediately available funds not
later than 12:00 Noon on the date when due and (iii) shall be distributed
by the Administrative Agent ratably among the Lenders entitled to receive such
payments (except as to the portion of the Letter of Credit retained by the
Issuing Lender, the Fronting Fee and the Issuing Lender Fees) promptly upon receipt
of such payments by the Administrative Agent in like funds as received.  If the Administrative Agent does not
distribute any such payment to a Lender (i) on the Business Day it
receives such payment (if such payment is received by the Administrative Agent
not later than 

 

 

 

 

 

 

 

 

46

 

12:00 Noon) or (ii) on
or before the next Business Day following the Business Day it receives such
payment (if such payment is received by the Administrative Agent after 12:00
Noon), the Administrative Agent shall, on demand, pay to such Lender interest
on the amount not distributed during the period from the date such amount was
required to be distributed until such amount is distributed to such Lender in
full at a rate per annum equal to the Federal Funds Effective Rate.  If any payment hereunder (other than payments
on the LIBOR Rate Loans) becomes due and payable on a day other than a Business
Day, such payment shall be extended to the next succeeding Business Day, and,
with respect to payments of principal, interest thereon shall be payable at the
then applicable rate during such extension. 
If any payment on a LIBOR Rate Loan becomes due and payable on a day
other than a Business Day, the maturity thereof shall be extended to the next
succeeding Business Day unless the result of such extension would be to extend
such payment into another calendar month, in which event such payment shall be
made on the immediately preceding Business Day.

 

                (b)           Allocation of Payments After Exercise
of Remedies.  Notwithstanding any
other provisions of this Credit Agreement to the contrary, after the exercise
of remedies (other than the invocation of default interest pursuant to Section 2.9)
by the Administrative Agent or the Lenders pursuant to Section 7.2 (or
after the Commitments shall automatically terminate and the Loans and all other
amounts under the Credit Documents shall automatically become due and payable
in accordance with the  terms of such
Section), all amounts collected or received by the Administrative Agent or any
Lender on account of the Borrowers’ Obligations or any other amounts
outstanding under any of the Credit Documents or in respect of the Collateral
shall be paid over or delivered as follows:

 

                                                                FIRST,
to the payment of all reasonable out-of-pocket costs and expenses (including
without limitation reasonable attorneys’ fees) of the Administrative Agent in
connection with enforcing the rights of the Lenders under the Credit Documents
and any protective advances made by the Administrative Agent with respect to
the Collateral under or pursuant to the terms of the Security Documents;

 

                                                                SECOND,
to the payment of all reasonable out-of-pocket costs and expenses (including
without limitation, reasonable attorneys’ and consultants’ fees) of the
Administrative Agent and each of the Lenders in connection with enforcing its
rights under the Credit Documents or otherwise with respect to the Borrowers’
Obligations owing to such Lender;

 

                THIRD, to the payment of all of the Borrowers’ Obligations
consisting of accrued fees and interest, including, with respect to any Bank
Product, any fees, premiums and scheduled periodic payments due under such Bank
Product and any interest accrued thereon;

 

FOURTH, to the payment of the outstanding principal
amount of the Borrowers’ Obligations and the payment or cash collateralization
of the outstanding LOC Obligations, and with respect to any Bank
Product, any breakage, termination or other payments due under such Bank
Product and any interest accrued thereon;

 

 

 

 

 

 

47

 

                                                                FIFTH,
to all other Borrowers’ Obligations and other obligations that shall have
become due and payable under the Credit Documents or otherwise and not repaid
pursuant to clauses “FIRST” through “FOURTH” above; and

 

                                                                SIXTH,
to the payment of the surplus, if any, to whoever may be lawfully entitled to
receive such surplus.

 

In carrying out
the foregoing, (i) amounts received shall be applied in the numerical
order provided until exhausted prior to application to the next succeeding
category; (ii) each of the Secured Parties shall receive an amount equal
to its pro rata share (based on the proportion that the then outstanding Loans
and LOC Obligations held by such Lender or the outstanding obligations payable
to such Bank Product Provider bears to the aggregate then outstanding Loans,
LOC Obligations and obligations payable under all Bank Products) of amounts
available to be applied pursuant to clauses “THIRD”, “FOURTH” and “FIFTH”
above; and (iii) to the extent that any amounts available for distribution
pursuant to clause “FOURTH” above are attributable to the issued but
undrawn amount of outstanding Letters of Credit, such amounts shall be held by
the Administrative Agent in a cash collateral account and applied (A) first,
to reimburse the Issuing Lender from time to time for any drawings under such
Letters of Credit and (B) then, following the expiration of all Letters of
Credit, to all other obligations of the types described in clauses “FOURTH”
and “FIFTH” above in the manner provided in this Section 2.12(b).  Amounts distributed with respect to any Bank
Product Debt shall be the lesser of the applicable Bank Product Amount last
reported to the Administrative Agent or the actual Bank Product Debt as
calculated by the methodology reported to the Administrative Agent for
determining the amount due.  The
Administrative Agent shall have no obligation to calculate the amount to be
distributed with respect to any Bank Product Debt, but may rely upon written
notice of the amount (setting forth a reasonably detailed calculation) from the
applicable Bank Product Provider.  In the
absence of such notice, the Administrative Agent may assume the amount to be
distributed is the Bank Product Amount last reported to it.

 

                Section 2.13           Non-Receipt of Funds by the
Administrative Agent.

 

                (a)           Funding by Lenders; Presumption by
Administrative Agent.  Unless the
Administrative Agent shall have received written notice from a Lender prior to
the proposed date of any Extension of Credit that such Lender will not make
available to the Administrative Agent such Lender’s share of such Extension of
Credit, the Administrative Agent may assume that such Lender has made such
share available on such date in accordance with this Agreement and may, in
reliance upon such assumption, make available to the Borrowers a corresponding
amount. If such corresponding amount is not in fact made available to the
Administrative Agent, the Administrative Agent shall be able to recover such
corresponding amount from such Lender. 
If such Lender does not pay such corresponding amount forthwith upon the
Administrative Agent’s demand therefor, in accordance with the terms hereof,
the Administrative Agent will promptly notify the Parent Borrower, and the
Borrowers shall immediately pay such corresponding amount with interest
thereon, for each day from and including the date such amount is made available
to the Borrowers to but excluding the date of payment to the Administrative
Agent, at (i) in the case of a payment to be made by such Lender, the
Federal Funds Effective Rate and (ii) in the case of a payment to be made
by the Borrowers, the interest rate applicable to 

 

 

 

 

 

 

 

48

 

 

Alternate Base
Rate Loans.  If the Borrowers and such
Lender shall pay such interest to the Administrative Agent for the same or an
overlapping period, the Administrative Agent shall promptly remit to the
Borrowers the amount of such interest paid by the Borrowers for such
period.  If such Lender pays its share of
the applicable Extension of Credit to the Administrative Agent, then the amount
so paid shall constitute such Lender’s Loan included in such Extension of
Credit.  Any payment by the Borrowers
shall be without prejudice to any claim the Borrowers may have against a Lender
that shall have failed to make such payment to the Administrative Agent.

 

                (b)           Payments by Borrowers;
Presumptions by Administrative Agent. 
Unless the Administrative Agent shall have received notice from the
Parent Borrower prior to the date on which any payment is due to the
Administrative Agent for the account of the Lenders or the Issuing Lender
hereunder that any Borrower will not make such payment, the Administrative
Agent may assume that the Borrowers have made such payment on such date in
accordance herewith and may, in reliance upon such assumption, distribute to
the Lenders or the Issuing Lender, as the case may be, the amount due.  In such event, if the Borrowers have not in
fact made such payment, then each of the Lenders or the Issuing Lender, as the
case may be, severally agrees to repay to the Administrative Agent forthwith on
demand the amount so distributed to such Lender or the Issuing Lender, with
interest thereon, for each day from and including the date such amount is
distributed to it to but excluding the date of payment to the Administrative
Agent, at the greater of the Federal Funds Effective Rate and a rate determined
by the Administrative Agent in accordance with banking industry rules on
interbank compensation.  A notice of the
Administrative Agent to any Lender or the Borrower with respect to any amount
owing under subsections (a) and (b) of this Section shall
be conclusive, absent manifest error.

 

(c)           Failure to
Satisfy Conditions Precedent.  If any
Lender makes available to the Administrative Agent funds for any Loan to be
made by such Lender as provided in the foregoing provisions of this Article II,
and such funds are not made available to the Borrowers by the Administrative
Agent because the conditions to the applicable Extension of Credit set forth in
Article IV are not satisfied or waived in accordance with the terms
thereof, the Administrative Agent shall promptly return such funds (in like
funds as received from such Lender) to such Lender, without interest.

 

(d)           Obligations of
Lenders Several.  The obligations of
the Lenders hereunder to make Term Loans and Revolving Loans, to fund
participations in Letters of Credit and Swingline Loans and to make payments
pursuant to Section 9.5(c) are several and not joint.  The failure of any Lender to make any Loan,
to fund any such participation or to make any such payment under Section 9.5(c) on
any date required hereunder shall not relieve any other Lender of its
corresponding obligation to do so on such date, and no Lender shall be responsible
for the failure of any other Lender to so make its Loan, to purchase its
participation or to make its payment under Section 9.5(c).

 

(e)           Funding Source.  Nothing herein shall be deemed to obligate
any Lender to obtain the funds for any Loan in any particular place or manner
or to constitute a representation by any 

 

 

 

 

 

 

49

 

Lender that it has
obtained or will obtain the funds for any Loan in any particular place or
manner.

 

                Section 2.14           Inability to Determine Interest
Rate.

 

                Notwithstanding any other
provision of this Agreement, if (a) the Administrative Agent shall
reasonably determine (which determination shall be conclusive and binding
absent manifest error) that, by reason of circumstances affecting the relevant
market, reasonable and adequate means do not exist for ascertaining the LIBOR
Rate for such Interest Period, or (b) the
Required Lenders shall reasonably determine (which determination shall be
conclusive and binding absent manifest error) that the LIBOR Rate does not
adequately and fairly reflect the cost to such Lenders of funding LIBOR Rate
Loans that the Parent Borrower has requested be outstanding as a LIBOR Tranche
during such Interest Period, the Administrative Agent shall forthwith give
telephone notice of such determination, confirmed in writing, to the Parent
Borrower, and the Lenders at least two Business Days prior to the first day of
such Interest Period.  Unless the Parent
Borrower shall have notified the Administrative Agent upon receipt of such
telephone notice that they wish to rescind or modify their request regarding
such LIBOR Rate Loans, any Loans that were requested to be made as LIBOR Rate
Loans shall be made as Alternate Base Rate Loans and any Loans that were
requested to be converted into or continued as LIBOR Rate Loans shall remain as
or be converted into Alternate Base Rate Loans. 
Until any such notice has been withdrawn by the Administrative Agent, no
further Loans shall be made as, continued as, or converted into, LIBOR Rate
Loans for the Interest Periods so affected.

 

Section 2.15           Yield Protection.

 

(a)           Increased
Costs Generally.  If any Change in
Law shall:

 

(i)            impose,
modify or deem applicable any reserve, special deposit, compulsory loan,
insurance charge or similar requirement against assets of, deposits with or for
the account of, or credit extended or participated in by, any Lender (except
any reserve requirement reflected in the LIBOR Rate) or the Issuing Lender;

 

(ii)           subject
any Lender or the Issuing Lender to any tax of any kind whatsoever with respect
to this Agreement, any Letter of Credit, any participation in a Letter of
Credit or any LIBOR Rate Loan made by it, or change the basis of taxation of
payments to such Lender or the Issuing Lender in respect thereof (except for
Indemnified Taxes or Other Taxes covered by Section 2.17 and the
imposition of, or any change in the rate of, any Excluded Tax payable by such
Lender or the Issuing Lender); or

 

(iii)          impose on any
Lender or the Issuing Lender or the London interbank market any other
condition, cost or expense affecting this Agreement or LIBOR Rate Loans made by
such Lender or any Letter of Credit or participation therein;

 

and the result of any of
the foregoing shall be to increase the cost to such Lender of making or
maintaining any LIBOR Rate Loan (or of maintaining its obligation to make any
such Loan), or to increase the cost to such Lender or the Issuing Lender of
participating in, issuing or 

 

 

 

50

 

maintaining any Letter of
Credit (or of maintaining its obligation to participate in or to issue any
Letter of Credit), or to reduce the amount of any sum received or receivable by
such Lender or the Issuing Lender hereunder (whether of principal, interest or
any other amount) then, upon request of such Lender or the Issuing Lender, the
Borrowers will pay to such Lender or the Issuing Lender, as the case may be,
such additional amount or amounts as will compensate such Lender or the Issuing
Lender, as the case may be, for such additional costs incurred or reduction
suffered.

 

(b)           Capital
Requirements.  If any Lender or the
Issuing Lender determines that any Change in Law affecting such Lender or the
Issuing Lender or any lending office of such Lender or such Lender’s or the
Issuing Lender’s holding company, if any, regarding capital requirements has or
would have the effect of reducing the rate of return on such Lender’s or the
Issuing Lender’s capital or on the capital of such Lender’s or the Issuing
Lender’s holding company, if any, as a consequence of this Agreement, the
Commitments of such Lender or the Loans made by, or participations in Letters
of Credit held by, such Lender, or the Letters of Credit issued by the Issuing
Lender, to a level below that which such Lender or the Issuing Lender or such
Lender’s or the Issuing Lender’s holding company could have achieved but for
such Change in Law (taking into consideration such Lender’s or the Issuing
Lender’s policies and the policies of such Lender’s or the Issuing Lender’s
holding company with respect to capital adequacy), then from time to time the
Borrowers will pay to such Lender or the Issuing Lender, as the case may be,
such additional amount or amounts as will compensate such Lender or the Issuing
Lender or such Lender’s or the Issuing Lender’s holding company for any such
reduction suffered.

 

(c)           Certificates
for Reimbursement.  A certificate of
a Lender or the Issuing Lender setting forth the amount or amounts necessary to
compensate such Lender or the Issuing Lender or its holding company, as the
case may be, as specified in paragraph (a) or (b) of this Section and
delivered to the Parent Borrower shall be conclusive absent manifest
error.  The Borrowers shall pay such
Lender or the Issuing Lender, as the case may be, the amount shown as due on
any such certificate within ten (10) days after receipt thereof.

 

(d)           Delay in
Requests.  Failure or delay on the
part of any Lender or the Issuing Lender to demand compensation pursuant to
this Section shall not constitute a waiver of such Lender’s or the Issuing
Lender’s right to demand such compensation, provided that the Borrowers
shall not be required to compensate a Lender or the Issuing Lender pursuant to
this Section for any increased costs incurred or reductions suffered, as
the case may be, to the extent that such Lender or the Issuing Lender fails to
make a demand for such compensation more than six (6) months after
becoming aware of such Change in Law giving arise to such increased costs or
reductions.

 

(e)           Lender Efforts.
Each Lender agrees to use reasonable efforts (including reasonable efforts to
change its lending office) to avoid or to minimize any amounts which might
otherwise be payable pursuant to this paragraph of this Section; provided,
however, that such efforts shall not cause the imposition on such Lender
of any additional costs or legal or regulatory burdens deemed by such Lender to
be material.

 

 

 

 

 

 

51

 

 

Section 2.16           Indemnity.

 

The Borrowers hereby
agree to indemnify each Lender and to hold such Lender harmless from any
funding loss or expense which such Lender may sustain or incur as a consequence
of (a) the failure by the
Borrowers to pay the principal amount of or interest on any Loan by such Lender
in accordance with the terms hereof, (b) the
failure by the Borrowers to accept a borrowing after the Borrowers have given a
notice in accordance with the terms hereof,
(c) default by the Borrowers in making any prepayment after the
Borrowers have given a notice in accordance with the terms hereof, and/or (d) the making by the Borrowers of a
prepayment of a Loan, or the conversion thereof, on a day which is not the last
day of the Interest Period with respect thereto, in each case including, but
not limited to, any such loss or expense arising from interest or fees payable
by such Lender to lenders of funds obtained by it in order to maintain its
Loans hereunder.  A certificate setting
forth in reasonable detail as to any additional amounts payable pursuant to
this Section submitted by any Lender, through the Administrative Agent, to
the Parent Borrower (which certificate must be delivered to the Administrative
Agent within thirty days following such default, prepayment or conversion)
shall be conclusive in the absence of manifest error.  The agreements in this Section shall
survive termination of this Agreement and payment of the Borrowers’
Obligations.

 

Section 2.17           Taxes.

 

(a)           Payments Free
of Taxes.  Any and all payments by or
on account of any obligation of the Borrowers hereunder or under any other
Credit Document shall be made free and clear of and without reduction or
withholding for any Indemnified Taxes or Other Taxes, provided that if
the Borrowers shall be required by applicable law to deduct any Indemnified
Taxes (including any Other Taxes) from such payments, then (i) the sum
payable shall be increased as necessary so that after making all required
deductions (including deductions applicable to additional sums payable under
this Section) the Administrative Agent, any Lender or Issuing Lender, as the
case may be, receives an amount equal to the sum it would have received had no
such deductions been made, (ii) the Borrowers shall make such deductions
and (iii) the Borrowers shall timely pay the full amount deducted to the
relevant Governmental Authority in accordance with applicable law.

 

(b)           Payment of
Other Taxes by the Borrowers. 
Without limiting the provisions of paragraph (a) above, the
Borrowers shall timely pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law.

 

(c)           Indemnification
by the Borrowers.  The Borrowers
shall indemnify the Administrative Agent, each Lender and the Issuing Lender,
within ten (10) days after demand therefor, for the full amount of
any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other
Taxes imposed or asserted on or attributable to amounts payable under this
Section) paid by the Administrative Agent, such Lender or the Issuing Lender,
as the case may be, and any penalties, interest and reasonable expenses arising
therefrom or with respect thereto, whether or not such Indemnified Taxes or
Other Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority.  A certificate as
to the amount of such payment or liability delivered to the Parent Borrower by
a Lender or the Issuing Lender (with a copy to 

 

 

 

52

 

the Administrative
Agent), or by the Administrative Agent on its own behalf or on behalf of a
Lender or the Issuing Lender, shall be conclusive absent manifest error.

 

(d)           Evidence of
Payments.  As soon as practicable
after any payment of Indemnified Taxes or Other Taxes by the Borrowers to a
Governmental Authority, the Parent Borrower shall deliver to the Administrative
Agent the original or a certified copy of a receipt issued by such Governmental
Authority evidencing such payment, a copy of the return reporting such payment
or other evidence of such payment reasonably satisfactory to the Administrative
Agent.

 

(e)           Status of
Lenders.  Any Foreign Lender that is
entitled to an exemption from or reduction of withholding tax under the law of
the jurisdiction in which any Borrower is resident for tax purposes, or any
treaty to which such jurisdiction is a party, with respect to payments
hereunder or under any other Credit Document shall deliver to the Parent
Borrower (with a copy to the Administrative Agent), at the time or times
prescribed by applicable law or reasonably requested by the Parent Borrower or
the Administrative Agent, such properly completed and executed documentation
prescribed by applicable law as will permit such payments to be made without
withholding or at a reduced rate of withholding.  In addition, any Lender, if requested by the
Parent Borrower or the Administrative Agent, shall deliver such other
documentation prescribed by applicable law or reasonably requested by the
Parent Borrower or the Administrative Agent as will enable the Borrowers or the
Administrative Agent to determine whether or not such Lender is subject to
backup withholding or information reporting requirements.

 

(f)            Foreign
Lenders.  Without limiting the
generality of the foregoing, in the event that any Borrower is resident for tax
purposes in the United States of America, any Foreign Lender shall deliver to
the Parent Borrower and the Administrative Agent (in such number of copies as
shall be requested by the recipient) on or prior to the date on which such
Foreign Lender becomes a Lender under this Agreement (and from time to time
thereafter upon the request of the Borrower or the Administrative Agent, but
only if such Foreign Lender is legally entitled to do so), whichever of the
following is applicable:

 

(i)            duly
completed copies of Internal Revenue Service Form W-8BEN claiming
eligibility for benefits of an income tax treaty to which the United States of
America is a party,

 

(ii)           duly
completed copies of Internal Revenue Service Form W-8ECI,

 

(iii)          in
the case of a Foreign Lender claiming the benefits of the exemption for
portfolio interest under section 881(c) of the Code, (i) a
certificate to the effect that such Foreign Lender is not (A) a “bank”
within the meaning of section 881(c)(3)(A) of the Code, (B) a “10
percent shareholder” of any Borrower within the meaning of
section 881(c)(3)(B) of the Code, or (C) a “controlled foreign
corporation” described in section 881(c)(3)(C) of the Code and (ii) duly
completed copies of  Internal Revenue
Service Form W-8BEN, or

 

 

 

 

 

 

 

53

 

(iv)          any
other form prescribed by applicable law as a basis for claiming exemption from
or a reduction in United States Federal withholding tax duly completed together
with such supplementary documentation as may be prescribed by applicable law to
permit the Borrower to determine the withholding or deduction required to be
made.

 

(g)           Treatment of
Certain Refunds.  If the
Administrative Agent, a Lender or the Issuing Lender determines, in its sole
discretion, that it has received a refund of any Taxes or Other Taxes as to
which it has been indemnified by the Borrowers or with respect to which the
Borrowers have paid additional amounts pursuant to this Section, it shall pay
to the Borrowers an amount equal to such refund (but only to the extent of
indemnity payments made, or additional amounts paid, by the Borrowers under
this Section with respect to the Taxes or Other Taxes giving rise to such
refund), net of all out-of-pocket expenses of the Administrative Agent, such
Lender or the Issuing Lender, as the case may be, and without interest (other
than any interest paid by the relevant Governmental Authority with respect to
such refund), provided that the Borrowers, upon the request of the
Administrative Agent, such Lender or the Issuing Lender, agrees to repay the
amount paid over to the Borrowers (plus any penalties, interest or other
charges imposed by the relevant Governmental Authority) to the Administrative
Agent, such Lender or the Issuing Lender in the event the Administrative Agent,
such Lender or the Issuing Lender is required to repay such refund to such
Governmental Authority.  This paragraph
shall not be construed to require the Administrative Agent, any Lender or the
Issuing Lender to make available its tax returns (or any other information
relating to its taxes that it deems confidential) to the Borrower or any other
Person.

 

(h)           Each Lender
agrees to use reasonable efforts (including reasonable efforts to change its
lending office) to avoid or to minimize any amounts which might otherwise be
payable pursuant to this paragraph of this Section; provided, however,
that such efforts shall not cause the imposition on such Lender of any
additional costs or legal or regulatory burdens deemed by such Lender to be
material.

 

Section 2.18           Indemnification; Nature of Issuing
Lender’s Duties.

 

(a)           In addition to
its other obligations under Section 2.3, the Borrowers hereby agree to
protect, indemnify, pay and save the Issuing Lender and each Lender harmless
from and against any and all claims, demands, liabilities, damages, losses,
costs, charges and expenses (including reasonable attorneys’ fees) that the
Issuing Lender or such Lender may incur or be subject to as a consequence,
direct or indirect, of (i) the issuance of any Letter of Credit or (ii) the
failure of the Issuing Lender to honor a drawing under a Letter of Credit as a
result of any act or omission, whether rightful or wrongful, of any present or
future de jure or de facto government or Governmental Authority (all such acts
or omissions, herein called “Government Acts”).

 

(b)           As between the
Borrowers, the Issuing Lender and each Lender, the Borrowers shall assume all
risks of the acts, omissions or misuse of any Letter of Credit by the
beneficiary thereof.  Neither the Issuing
Lender nor any Lender shall be responsible: 
(i) for the form, validity, sufficiency, accuracy, genuineness or
legal effect of any document submitted by any party in connection with the
application for and issuance of any Letter of Credit, even if it should 

 

 

 

 

 

 

54

 

in fact prove to be in
any or all respects invalid, insufficient, inaccurate, fraudulent or forged; (ii) for the validity or sufficiency
of any instrument transferring or assigning or purporting to transfer or assign
any Letter of Credit or the rights or benefits thereunder or proceeds thereof,
in whole or in part, that may prove to be invalid or ineffective for any
reason; (iii) for failure of
the beneficiary of a Letter of Credit to comply fully with conditions required
in order to draw upon a Letter of Credit; (iv) for
errors, omissions, interruptions or delays in transmission or delivery of any
messages, by mail, cable, telegraph, telex or otherwise, whether or not they be
in cipher; (v) for errors in interpretation of technical terms; (vi) for
any loss or delay in the transmission or otherwise of any document required in
order to make a drawing under a Letter of Credit or of the proceeds thereof;
and (vii) for any consequences arising from causes beyond the control of
the Issuing Lender or any Lender, including, without limitation, any Government
Acts.  None of the above shall affect,
impair, or prevent the vesting of the Issuing Lender’s rights or powers
hereunder.

 

(c)           In furtherance
and extension and not in limitation of the specific provisions hereinabove set
forth, any action taken or omitted by the Issuing Lender or any Lender, under
or in connection with any Letter of Credit or the related certificates, if
taken or omitted in the absence of gross negligence or willful misconduct,
shall not put such Issuing Lender or such Lender under any resulting liability
to the Borrowers.  It is the intention of
the parties that this Agreement shall be construed and applied to protect and
indemnify the Issuing Lender and each Lender against any and all risks involved
in the issuance of the Letters of Credit, all of which risks are hereby assumed
by the Borrowers, including, without limitation, any and all risks of the acts
or omissions, whether rightful or wrongful, of any Government Authority.  The Issuing Lender  and the Lenders shall not, in any way, be
liable for any failure by the Issuing Lender or anyone else to pay any drawing
under any Letter of Credit as a result of any Government Acts or any other
cause beyond the control of the Issuing Lender and the Lenders.

 

(d)           Nothing in this Section is
intended to limit the reimbursement obligation of the Borrowers contained in Section 2.3(d) hereof.  The obligations of the Borrowers under this Section shall
survive the termination of this Agreement. 
No act or omissions of any current or prior beneficiary of a Letter of
Credit shall in any way affect or impair the rights of the Issuing Lender and
the Lenders to enforce any right, power or benefit under this Agreement.

 

(e)           Notwithstanding
anything to the contrary contained in this Section, the Borrowers shall have no
obligation to indemnify the Issuing Lender or any Lender in respect of any
liability incurred by the Issuing Lender or such Lender arising out of the
gross negligence or willful misconduct of the Issuing Lender (including action
not taken by the Issuing Lender or such Lender), as determined by a court of
competent jurisdiction or pursuant to arbitration.

 

Section 2.19           Illegality.

 

Notwithstanding
any other provision of this Credit Agreement, if any Change in Law shall make
it unlawful for such Lender or its LIBOR Lending Office to make or maintain
LIBOR Rate Loans as contemplated by this Credit Agreement or to obtain in the
interbank Eurodollar market through its LIBOR Lending Office the funds with
which to make such Loans, (a) such
Lender shall promptly notify the Administrative Agent and the Parent Borrower
thereof, (b) the 

 

 

 

 

 

55

 

commitment of such
Lender hereunder to make LIBOR Rate Loans or continue LIBOR Rate Loans as such
shall forthwith be suspended until the Administrative Agent shall give notice
that the condition or situation which gave rise to the suspension shall no
longer exist, and (c) such
Lender’s Loans then outstanding as LIBOR Rate Loans, if any, shall be converted
on the last day of the Interest Period for such Loans or within such earlier
period as required by law as Alternate Base Rate Loans.  The Borrowers hereby agree to promptly pay
any Lender, upon its demand, any additional amounts necessary to compensate
such Lender for actual and direct costs (but not including anticipated profits)
reasonably incurred by such Lender in making any repayment in accordance with
this Section including, but not limited to, any interest or fees payable
by such Lender to lenders of funds obtained by it in order to make or maintain
its LIBOR Rate Loans hereunder.  A
certificate (which certificate shall include a description of the basis for the
computation) as to any additional amounts payable pursuant to this Section submitted
by such Lender, through the Administrative Agent, to the Borrowers shall be
conclusive in the absence of manifest error. 
Each Lender agrees to use reasonable efforts (including reasonable
efforts to change its LIBOR Lending Office) to avoid or to minimize any amounts
which may otherwise be payable pursuant to this Section; provided, however,
that such efforts shall not cause the imposition on such Lender of any
additional costs or legal or regulatory burdens deemed by such Lender in its
sole discretion to be material.

 

                Section 2.20           Joint and Several Liability of the
Borrowers.

 

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

 

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

 

(c)           If
and to the extent that any of the Borrowers shall fail to make any payment with
respect to any of the obligations hereunder as and when due or to perform any
of such obligations in accordance with the terms thereof, then in each such
event, the other Borrowers will jointly and severally make such payment with
respect to, or perform, such obligation.

 

(d)           The
obligations of each Borrower under the provisions of this Section constitute
full recourse obligations of such Borrower, enforceable against it to the full
extent of its properties and assets whether now owned or hereafter acquired;

 

(e)           The
provisions of this Section are made for the benefit of the Administrative
Agent, the Lenders and their successors and assigns, and may be enforced by
them from time to time against any of the Borrowers as often as occasion
therefor may arise and without requirement on the 

 

 

 

 

 

 

56

 

part
of the Lenders first to marshal any of its claims or to exercise any of its
rights against any other Borrower or to exhaust any remedies available to it
against any other Borrower or to resort to any other source or means of
obtaining payment of any of the Borrowers’ Obligations hereunder or to elect
any other remedy.  The provisions of this
Section shall remain in effect until all of the Borrowers’ Obligations
hereunder shall have been paid in full or otherwise fully satisfied, and all of
the Commitments and Credit Documents shall have been terminated.  If at any time, any payment, or any part
thereof, made in respect of any of the Borrowers’ Obligations, is rescinded or
must otherwise be restored or returned by the Lenders upon the insolvency,
bankruptcy or reorganization of any of the Borrowers, or otherwise, the
provisions of this Section will forthwith be reinstated and in effect as
though such payment had not been made.

 

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

 

(g)           Without
in any way limiting the provisions of this Section, for record-keeping purposes
only, the Borrowers may allocate between themselves the individual Loans made
hereunder.

 

Section 2.21           Replacement of Lenders.

 

(a)           Designation
of a Different Lending Office.  If
any Lender requests compensation under Section 2.15 or Section 2.16,
or requires the Borrowers to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 2.17,
then such Lender shall use reasonable efforts to designate a different lending
office for funding or booking its Loans hereunder or to assign its rights and
obligations hereunder to another of its offices, branches or affiliates, if, in
the judgment of such Lender, such designation or assignment (i) would
eliminate or reduce amounts payable pursuant to Section 2.15, Section 2.16
or Section 2.17, as the case may be, in the future and (ii) would not
subject such Lender to any unreimbursed cost or expense and would not otherwise
be disadvantageous to such Lender.  The
Borrowers hereby agree to pay all reasonable costs and expenses incurred by any
Lender in connection with any such designation or assignment.

 

(b)           Replacement
of Lenders.  If any Lender requests
compensation under Section 2.15 or Section 2.16, or if the Borrowers
are required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 2.17, or if
any Lender defaults in its obligation to fund Loans hereunder, then the
Borrowers may, at their sole expense and effort, upon notice to such Lender and
the Administrative Agent, require such Lender to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in, and
consents required by, Section 9.6), all of its interests, rights and obligations
under this Agreement and the related Credit Documents to an assignee that shall
assume such 

 

 

 

 

 

57

 

obligations (which
assignee may be another Lender, if a Lender accepts such assignment), provided
that:

 

(i)            the Borrowers shall have paid to the
Administrative Agent the assignment fee specified in Section 9.6;

 

(ii)           such Lender shall have received
payment of an amount equal to the outstanding principal of its Loans and
participations in Letters of Credit, accrued interest thereon, accrued fees and
all other amounts payable to it hereunder and under the other Credit Documents
(including any amounts under Section 2.15 or Section 2.16) from the
assignee (to the extent of such outstanding principal and accrued interest and
fees) or the Borrower (in the case of all other amounts);

 

(iii)          in
the case of any such assignment resulting from a claim for compensation under Section 2.15
or Section 2.16 or payments required to be made pursuant to Section 2.17,
such assignment is, at the time of such assignment, reasonably likely to result
in a reduction in such compensation or payments; and

 

(iv)          such
assignment does not conflict with applicable law.

 

A Lender shall not be
required to make any such assignment or delegation if, prior thereto, as a
result of a waiver by such Lender or otherwise, the circumstances entitling the
Borrowers to require such assignment and delegation cease to apply and such
Lender waives all rights for compensation under Sections 2.15, 2.16 or 2.17 for
prior periods.

 

ARTICLE III

 

REPRESENTATIONS
AND WARRANTIES

 

                To induce the Lenders to enter
into this Agreement and to make the Extensions of Credit herein provided for,
the Borrowers hereby represent and warrant to the Administrative Agent and to
each Lender that:

 

                Section 3.1             Financial Condition.

 

(a)           (i) The audited consolidated financial
statements of the Parent Borrower’s (including its Subsidiaries) historical
results for their respective fiscal years ended 2004, 2005 and 2006, (ii) a
management prepared update of the consolidated financial statements of the
Parent Borrower’s (including its Subsidiaries) financial results through the
fiscal year ending 2007 and (iii) a pro  forma balance sheet
of the Parent Borrower and its Subsidiaries for the most recent quarter end
that financial statements are available:

 

(A)          were
prepared in accordance with GAAP (to the extent applicable) consistently
applied throughout the period covered thereby, except as otherwise expressly 

 

 

 

 

58

 

noted therein, by an
independent nationally recognized accounting firm (except with respect to the
unaudited financial statements and the pro forma balance sheet);

 

(B)           fairly
present the financial condition of the Parent Borrower and its respective Subsidiaries as of the date or dates thereof
(subject, in the case of the unaudited financial statements, to normal year-end
adjustments and, in the case of the pro forma balance sheet referred to in
subsection (v) above, such information is true and correct in all material
respects and has been determined in good faith based upon reasonable
assumptions) and results of operations for the period covered thereby; and

 

(C)           show
(with respect to non-annual financial information only, to the extent required
to be shown on a balance sheet prepared in accordance with GAAP) all
Indebtedness and other liabilities, direct or contingent, of the Parent
Borrower and its respective Subsidiaries as of the date thereof in accordance
with GAAP, including liabilities for taxes (provided that with respect to the
pro forma balance sheet referred to in subsection (v) above, such
information is true and correct in all material respects and has been
determined in good faith based upon reasonable assumptions) and as to the
audited consolidated financial statements, contingent obligations.

 

                (b)           Five (5) year projections of the
Parent Borrower and its Subsidiaries have been made available to the Lenders
prior to the date hereof and have been prepared in good faith based upon
reasonable assumptions at the time such budget and projections were made.

 

                Section 3.2             No Change.

 

                Since December 30, 2006
(and, after delivery of annual audited financial statements in accordance with Section 5.1(a),
from the date of the most recently delivered annual audited financial
statements) there has been no development or event that, individually or in the
aggregate, has had or could reasonably be expected to have a Material Adverse
Effect.

 

                Section 3.3             Corporate Existence; Compliance
with Law.

 

                Each of the Borrowers (a) is duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
organization, (b) has the
requisite power and authority and the legal right to own and operate all its
property, to lease the property it operates as lessee and to conduct the
business in which it is currently engaged, (c) is
duly qualified to conduct business and in good standing under the laws of each
jurisdiction where its ownership, lease or operation of property or the conduct
of its business requires such qualification except to the extent that the
failure to so qualify or be in good standing could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect and (d) is in compliance with all
Requirements of Law except to the extent that the failure to comply therewith
could not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.

 

 

 

 

 

59

 

                Section 3.4             Corporate Power; Authorization;
Enforceable Obligations.

 

                Each of the Borrowers has full
power and authority and the legal right to execute, deliver and perform the
Credit Documents to which it is party and has taken all necessary limited liability
company, partnership or corporate action to authorize the execution, delivery
and performance by it of the Credit Documents to which it is party.  No consent or authorization of, filing with,
notice to or other act by or in respect of, any Governmental Authority or any
other Person is required in connection with the borrowings hereunder or with
the execution, delivery or performance of any Credit Document by the Borrowers
(other than those that have been obtained) or with the validity or enforceability
of any Credit Document against the Borrowers (except such filings as are
necessary in connection with the perfection of the Liens created by such Credit
Documents).  Each Credit Document to
which it is a party has been duly executed and delivered on behalf of each of
the Borrowers.  Each Credit Document to
which it is a party constitutes a legal, valid and binding obligation of each
of the Borrowers, enforceable against such Borrower in accordance with its
terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors’ rights generally and by general equitable principles
(whether enforcement is sought by proceedings in equity or at law).

 

                Section 3.5             Compliance with Laws; No
Conflict; No Default.

 

                (a)           The execution, delivery and
performance by each Borrower of the Credit Documents to which such Borrower is
a party, in accordance with their respective terms, the borrowings hereunder
and the transactions contemplated hereby do not and will not, by the passage of
time, the giving of notice or otherwise, (i) require any approval or
consent from any Governmental Authority (other than such approvals or consents
that have been obtained or made and not subject to suspension, revocation or
termination) or violate any Requirement of Law relating to such Borrower, (ii) conflict
with, result in a breach of or constitute a default under the articles of
incorporation, bylaws, articles of organization, operating agreement or other
organizational documents of such Borrower or any material indenture, agreement
or other instrument to which such Person is a party or by which any of its
properties may be bound or any approval or consent from any Governmental
Authority relating to such Person, or (iii) result in or require the
creation or imposition of any Lien upon or with respect to any property now
owned or hereafter acquired by such Person other than Liens arising under the
Credit Documents.

 

                (b)           Each Borrower (i) (x) has
all approvals, permits, licenses and consents from all Governmental Authorities
required by law for it to conduct its business, each of which is in full force
and effect, (y) each such approval and consent is final and not subject to
review on appeal and (z) each such approval, permit, license and consent
is not the subject of any pending or, to the best of its knowledge, threatened
attack by direct or collateral proceeding, and (ii) is in compliance with
each rule and regulation of each Governmental Authority applicable to it
and in compliance with all other Requirements of Law relating to it or any of
its respective properties, in each case except to the extent the failure to
obtain or maintain such approval or consent or failure to comply with such rules and
regulations or Requirement of Law could not reasonably be expected to have a
Material Adverse Effect.

 

 

 

 

 

 

 

60

 

                (c)           None of the Borrowers is in default
under or with respect to any of its Government Contracts or Material Contracts
or under or with respect to any of its other material Contractual Obligations,
or any judgment, order or decree to which it is a party, in any respect which
could reasonably be expected to have a Material Adverse Effect.  No Default or Event of Default has occurred
and is continuing.

 

                Section 3.6             No Material Litigation.

 

                No litigation, investigation,
bankruptcy or insolvency, injunction, order or claim affecting or relating to
any Borrower or any of its Subsidiaries, any such Person’s properties or
revenues, or any Credit Document is pending or, to the best knowledge of the
Borrowers, threatened by or against any Borrower or any of its Subsidiaries or
against any of its or their respective properties or revenues that has not been
settled, dismissed, vacated, discharged or terminated that, if adversely
determined, could reasonably be expected to have a Material Adverse Effect, and
no judgments are outstanding  that
could reasonably be expected to have a Material Adverse Effect.

 

                Section 3.7             Investment Company Act.

 

                No Borrower is an “investment
company”, or a company “controlled” by an “investment company”, within the
meaning of the Investment Company Act of 1940, as amended.

 

                Section 3.8             Margin Regulations.

 

                No part of the proceeds of any
Extension of Credit hereunder will be used directly or indirectly for any
purpose that violates, or that would be inconsistent with, the provisions of
Regulation T, U or X of the Board of Governors of the Federal Reserve System as
now and from time to time hereafter in effect. 
The Borrowers (a) are not engaged, principally or as one of their
important activities, in the business of extending credit for the purpose of “purchasing”
or “carrying” “margin stock” within the respective meanings of each of such
terms under Regulation U and (b) taken as a group do not own “margin stock”
except as identified in the financial statements referred to in Section 3.1
and the aggregate value of all “margin stock” owned by the Borrowers taken as a
group does not exceed 25% of the value of their assets.

 

                Section 3.9             ERISA.

 

                Except as set forth in Schedule
3.9, neither a Reportable Event nor an “accumulated funding deficiency”
(within the meaning of Section 412 of the Code or Section 302 of
ERISA) has occurred during the five-year period prior to the date on which this
representation is made or deemed made with respect to any Plan, and each Plan
has complied in all material respects with the applicable provisions of ERISA
and the Code, except to the extent that any such occurrence or failure to
comply could not reasonably be expected to have a Material Adverse Effect.  No termination of a Single Employer Plan has
occurred resulting in any liability that has remained underfunded, and no Lien
in favor of the PBGC or a Plan has arisen, during such five-year period that
could reasonably be expected to have a Material Adverse Effect.  The present value of all accrued benefits
under each Single Employer Plan (based on those assumptions used to fund such
Plans) did not, as of the last annual valuation date prior to the date on which
this 

 

 

61

 

representation is
made or deemed made, exceed the value of the assets of such Plan allocable to
such accrued benefits by an amount that, as determined in accordance with GAAP,
could reasonably be expected to have a Material Adverse Effect.  Neither any Borrower, nor any of its
Subsidiaries nor any Commonly Controlled Entity is currently subject to any
liability for a complete or partial withdrawal from a Multiemployer Plan that
could reasonably be expected to have a Material Adverse Effect.

 

                Section 3.10           Environmental Matters.

 

                Except as set forth in Schedule 3.10 which,
either individually or in the aggregate, could not reasonably be expected to
result in a Material Adverse Effect:

 

                (a)           The facilities and properties owned,
leased or operated by the Borrowers or any of their Subsidiaries (the “Properties”)
do not to the knowledge of the Borrowers contain any Materials of Environmental
Concern in amounts or concentrations that (i) constitute a material
violation of, or (ii) could
give rise to material liability under, any Environmental Law.

 

                (b)           The Properties and all operations of
the Borrowers and their Subsidiaries at the Properties are in compliance, and
have in the last five years been in compliance, in all material respects with
all applicable Environmental Laws, and to the knowledge of the Borrowers there
is no contamination at, under or about the Properties or violation of any
Environmental Law with respect to the Properties or the business operated by
the Borrowers or any of their Subsidiaries (the “Business”).

 

                (c)           No Borrower nor any Subsidiary
thereof has received any written or actual notice of violation, alleged violation,
non-compliance, liability or potential liability regarding environmental
matters or compliance with Environmental Laws with regard to any of the
Properties or the Business, nor does any Borrower nor any Subsidiary thereof
have knowledge or reason to believe that any such notice will be received or is
being threatened.

 

                (d)           To the knowledge of the Borrowers,
Materials of Environmental Concern have not been transported or disposed of
from the Properties in violation of, or in a manner or to a location that could
give rise to any liability under any Environmental Law, nor, to the knowledge
of the Borrowers have any Materials of Environmental Concern been generated,
treated, stored or disposed of at, on or under any of the Properties in
violation of, or in a manner that could give rise to any material liability to
any Borrower or the Lenders under, any applicable Environmental Law.

 

                (e)           No judicial proceeding or
governmental or administrative action is pending or, to the knowledge of any
Borrower or any Subsidiary thereof, threatened, under any Environmental Law to
which any Borrower or any Subsidiary thereof is or will be named as a party
with respect to the Properties or the Business, nor are there any consent
decrees or other decrees, consent orders, administrative orders or other
orders, or other administrative or judicial requirements outstanding under any
Environmental Law with respect to the Properties or the Business.

 

 

 

 

 

 

62

 

                (f)            There has been no release or threat
of release of Materials of Environmental Concern at or from the Properties, or
arising from or related to the operations of any Borrower or any Subsidiary
thereof in connection with the Properties or otherwise in connection with the
Business, in violation of or in amounts or in a manner that could give rise to
any liability under Environmental Laws.

 

                Section 3.11           Purpose of Loans.

 

                The proceeds of
the Extensions of Credit shall be used solely by the Borrowers as follows:

 

                (a)           with respect to the Revolving Loans,
the Term Loan and Swingline Loans, to (i) finance Permitted Acquisitions, (ii) refinance
certain existing Indebtedness of the Borrowers, (iii) pay fees and
expenses owing to the Lenders and the Administrative Agent in connection with
this Agreement and (iv) provide for working capital, capital expenditures
and other general corporate purposes of the Borrowers; and

 

                (b)           the
Letters of Credit shall be used only for or in connection with appeal bonds,
reimbursement obligations arising in connection with leases, surety and
reclamation bonds, reinsurance, domestic or international trade transactions
and obligations not otherwise aforementioned relating to transactions entered
into by the applicable account party in the ordinary course of business.

 

                Section 3.12           Subsidiaries.

 

                Set forth on Schedule 3.12
is a complete and accurate list of all Subsidiaries of the Borrowers as of the
Closing Date.  Information on the
attached Schedule includes state of incorporation or organization; the number
of authorized shares of each class of Capital Stock or other equity interests;
the number of outstanding shares of each class of Capital Stock or other equity
interests, the owner thereof and the percentage of such ownership; and the
number and effect, if exercised, of all outstanding options, warrants, rights
of conversion or purchase and similar rights. 
The outstanding Capital Stock and other equity interests of all such
Subsidiaries is validly issued, fully paid and non-assessable and is owned free
and clear of all Liens (other than those arising under or contemplated in
connection with the Credit Documents). 
Promptly upon the formation or acquisition of a Subsidiary, Schedule
3.12 shall be updated by the Parent Borrower by giving written notice
thereof to the Administrative Agent.

 

Section 3.13           Ownership; Insurance.

 

Each of the Borrowers is
the owner of, and has good and marketable title to and adequate insurance
coverage for, all of its respective assets that, together with assets leased or
licensed by the Borrowers, represents all assets individually or in the
aggregate material to the conduct of the businesses of the Borrowers taken as a
whole, and none of such assets is subject to any Lien other than Permitted
Liens.  Each Borrower enjoys peaceful and
undisturbed possession under all of its material leases and all such leases are
valid and subsisting and in full force and effect.  The Borrowers have delivered complete and
accurate copies of all material leases in effect at the Closing Date to the
Administrative Agent.  The insurance coverage of the Borrowers
and their 

 

 

 

 

63

 

Subsidiaries as of the
Closing Date is outlined as to carrier,
policy number, expiration date, type and amount on Schedule 3.13
and such insurance coverage complies with the requirements set forth herein.

 

                Section 3.14           Indebtedness.

 

                Except as otherwise permitted under Section 6.1,
the Borrowers and their Subsidiaries have no Indebtedness.

 

                Section 3.15           Taxes.

 

                Each of the Borrowers and its Subsidiaries has filed,
or caused to be filed, all tax returns (federal, state, local and foreign)
required to be filed and paid (a) all
amounts of taxes shown thereon to be due (including interest and penalties) and (b) all other taxes, fees,
assessments and other governmental charges (including mortgage recording taxes,
documentary stamp taxes and intangibles taxes) owing by it, except for such
taxes (i) that are not yet delinquent or
(ii) that are being contested in good faith and by proper
proceedings, and against which adequate reserves are being maintained in
accordance with GAAP.  None of the
Borrowers is aware as of the Closing Date of any proposed tax assessments against
it or any of its Subsidiaries that could reasonably be expected to have a
Material Adverse Effect.

 

                Section 3.16           Intellectual Property.

 

                Each of the Borrowers and its Subsidiaries owns, or
has the legal right to use, all Intellectual Property, tradenames, technology,
know-how and processes necessary for each of them to conduct its business as
currently conducted.  Set forth on Schedule
3.16 is a list of all Intellectual Property owned by the Borrowers and
their Subsidiaries or that any Borrower or any of its Subsidiaries has the
right to use as of the Closing Date. 
Each material item of Intellectual Property of the Borrowers and their
Subsidiaries is valid, subsisting, unexpired, enforceable and has not been
abandoned, except for any Intellectual Property abandoned in accordance with the
terms of Section 5.13(d).  Except as
provided on Schedule 3.16, as of the Closing Date (a) no material
item of Intellectual Property owned the Borrowers and their Subsidiaries is the
subject of any licensing or franchise agreement, other than licenses created by
operation of law under Government Contracts and (b) no claim has been
asserted and is pending by any Person challenging or questioning the use of any
such Intellectual Property or the validity or effectiveness of any such
Intellectual Property, nor does any Borrower or any of its Subsidiaries know of
any such claim, and, to the knowledge of any Borrower and its Subsidiaries, the
use of such Intellectual Property by any Borrower or any of its Subsidiaries
does not infringe on the rights of any Person, except for such claims and
infringements that in the aggregate, could not reasonably be expected to have a
Material Adverse Effect.

 

Section 3.17           Solvency.

 

Each of the Borrowers is
solvent and is able to pay its debts and other liabilities, contingent obligations
and other commitments as they mature in the normal course of business,
and the fair saleable value of each Borrower’s assets, measured on a going
concern basis, 

 

 

 

 

64

 

exceeds all probable
liabilities, including those to be incurred pursuant to this Agreement.  None of the Borrowers (i) has
unreasonably small capital in relation to the business in which it is or
proposes to be engaged or (ii) has incurred, or believes that it will
incur debts beyond its ability to pay such debts as they become due.

 

                Section 3.18           Investments.

 

                All Investments of each of the Borrowers and their
Subsidiaries are Permitted Investments.

 

                Section 3.19           Location of Collateral.

 

                Set forth on Schedule 3.19(a) is a list of
the Properties of the Borrowers and their Subsidiaries with street address,
county and state where located, as of the Closing Date.  Set forth on Schedule 3.19(b) is
a list of all locations where any tangible personal property of the Borrowers
and their Subsidiaries is located, including county and state where located, as
of the Closing Date.  Set forth on Schedule
3.19(c) is the state of incorporation or organization, the chief
executive office, principal place of business, the federal tax identification
number and organization identification number of each of the Borrowers as of
the Closing Date.

 

                Section 3.20           No Burdensome Restrictions.

 

                None of the Borrowers or any of its Subsidiaries is a
party to any agreement or instrument or subject to any other obligation or any
charter or corporate restriction or any provision of any applicable law, rule or
regulation that, individually or in the aggregate, could reasonably be expected
to have a Material Adverse Effect.

 

                Section 3.21           Brokers’ Fees.

 

                None of the Borrowers or any of its Subsidiaries have
any obligation to any Person in respect of any finder’s, broker’s, investment
banking or other similar fee in connection with any of the transactions
contemplated under the Credit Documents other than the closing and other fees
payable pursuant to this Agreement and the Fee Letter.

 

                Section 3.22           Labor Matters.

 

                As of the Closing Date, there are no collective
bargaining agreements or Multiemployer Plans covering the employees of the
Borrowers or any of their Subsidiaries, other than as set forth in Schedule
3.22 hereto, and none of the Borrowers or any of its Subsidiaries (a) has
suffered any strikes, walkouts, work stoppages or other material labor
difficulty within the last five years, other than as set forth in Schedule
3.22 hereto or (b) has
knowledge of any potential or pending strike, walkout or work stoppage.

 

 

 

 

 

 

 

65

 

                Section 3.23           Security Documents.

 

                The Security Documents create valid security
interests in, and Liens on, the Collateral purported to be covered thereby,
which security interests and Liens are currently (or will be, upon the filing
of appropriate financing statements and grants of security in Intellectual
Property, the execution of appropriate control agreements and the recordation
of the applicable Mortgage Instruments, in each case in favor of the
Administrative Agent on behalf of the Secured Parties) perfected security
interests and Liens, prior to all other Liens other than Permitted Liens.

 

                Section 3.24           Accuracy and Completeness of
Information.

 

                All factual information heretofore, contemporaneously
or hereafter furnished by or on behalf of any Borrower or any of its
Subsidiaries to the Administrative Agent or any Lender for purposes of or in
connection with this Agreement or any other Credit Document, or any transaction
contemplated hereby or thereby, is or will be true and accurate in all material
respects and not incomplete by omitting to state any material fact necessary to
make such information not materially misleading.  There is no fact now known to any Borrower or
any of its Subsidiaries that has, or could reasonably be expected to have, a
Material Adverse Effect.

 

                Section 3.25           Absence of Certain Changes or
Events.

 

                As of the Closing Date, since December 30, 2006,
except as set forth on Schedule 3.25 or as permitted hereby, none of the
Borrowers has (a) issued any stock, bonds or other corporate securities, (b) borrowed
any amount or incurred any liabilities (absolute or contingent), other than in
the ordinary course of business, in excess of $1,000,000, (c) discharged
or satisfied any Lien or incurred or paid any obligation or liability (absolute
or contingent), other than in the ordinary course of business in excess of
$1,000,000, (d) declared or made any payment or distribution to
stockholders or purchased or redeemed any shares of its Capital Stock or other
securities, (e) mortgaged, pledged or subjected to Lien any of its assets,
tangible or intangible, (f) sold, assigned or transferred any of its
tangible assets, or canceled any debts or claims other than in the ordinary
course of business, (g) sold, assigned or transferred any Intellectual
Property or other intangible assets other than in the ordinary course of
business, (h) suffered any losses of property, or waived any rights of
substantial value, (i) granted any bonuses other than in the ordinary
course of business or granted any extraordinary salary increases, (j) entered
into any transaction involving consideration in excess of $2,000,000 except as
otherwise contemplated hereby other than in the ordinary course of business or (k) entered
into any agreement or transaction, or amended or terminated any agreement with
any Affiliate.  To the knowledge of the
Borrowers, no material adverse change in the business, operations, property or
financial condition of the Borrowers, taken as a whole, is threatened or
reasonably likely to occur.

 

                Section 3.26           Material Contracts.

 

                Schedule 3.26 sets forth a complete and
accurate list of all Material Contracts of the Borrowers and their Subsidiaries
in effect as of the Closing Date.  As of
the Closing Date, other than as set forth in Schedule 3.26, each such
Material Contract is, and after giving effect to the transactions contemplated
by the Credit Documents will be, in full force and effect in accordance 

 

 

 

 

66

 

with the terms thereof and no Borrower or Subsidiary thereof has
violated in any material respect any such Material Contract.  The Borrowers have delivered to the
Administrative Agent for its review a correct and complete copy of each written
agreement listed in Schedule 3.26 (as amended to date) and a written
summary setting forth the terms and conditions of each oral agreement referred
to in such Schedule.  Schedules 3.26
shall be updated by the Borrowers within thirty (30) days (or such longer
period of time as agreed to by the Administrative Agent in its reasonable
discretion) after the reasonable request of the Administrative Agent.

 

Section 3.27           Directors;
Capitalization.

 

Set forth on Schedule 3.27 is a list of the
members of the Parent Borrower’s board of directors as of the Closing
Date.  As of the Closing Date the
capitalization of the Parent Borrower shall be as set forth on Schedule 3.27.

 

Section 3.28           Classification
of Senior Indebtedness.

 

The Borrowers’ Obligations constitute “Senior
Indebtedness” under and as defined in any agreement governing any Subordinated
Debt and the subordination provisions set forth in each such agreement are
legally valid and enforceable against the parties thereto.

 

Section 3.29           Foreign
Assets Control Regulations, Etc.

 

Neither any Borrower nor any of its Subsidiaries is an
“enemy” or an “ally of the enemy” within the meaning of Section 2 of the Trading
with the Enemy Act of the United States of America (50 U.S.C. App. §§ 1 et
seq.), as amended.  Neither any Borrower
nor any or its Subsidiaries is in violation of (a) the Trading with the
Enemy Act, as amended, (b) any of the foreign assets control regulations
of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as
amended) or any enabling legislation or executive order relating thereto or (c) the
Patriot Act.  None of the Borrowers (i) is
a blocked person described in section 1 of the Anti-Terrorism Order or (ii) to
the best of its knowledge, engages in any dealings or transactions, or is
otherwise associated, with any such blocked person.

 

Section 3.30           Compliance
with OFAC Rules and Regulations.

 

(a)           None of the
Borrowers or their Subsidiaries or their respective Affiliates is in violation
of and shall not violate any of the country or list based economic and
trade sanctions
administered and enforced by OFAC that are described or referenced at
http://www.ustreas.gov/offices/enforcement/ofac/ or as otherwise published from
time to time.

 

(b)           None of the
Borrowers or their Subsidiaries or their respective Affiliates (i) is a
Sanctioned Person or a Sanctioned Entity, (ii) has a more than 10% of its
assets located in Sanctioned Entities, or (iii) derives more than 10% of
its operating income from investments in, or transactions with Sanctioned
Persons or Sanctioned Entities.  The
proceeds of any Loan will not be used and have not been used to fund any
operations in, finance any investments or activities in or make any payments
to, a Sanctioned Person or a Sanctioned Entity.

 

 

 

67

 

 

Section 3.31           Compliance with FCPA.

 

Each of the Borrowers and
their Subsidiaries is in compliance with the Foreign Corrupt Practices Act, 15
U.S.C. §§ 78dd-1, et seq., and any foreign
counterpart thereto.  None of the
Borrowers or their Subsidiaries has made a payment, offering, or promise to
pay, or authorized the payment of, money or anything of value (a) in order
to assist in obtaining or retaining business for or with, or directing business
to, any foreign official, foreign political party, party official or candidate
for foreign political office, (b) to a foreign official, foreign political
party or party official or any candidate for foreign political office, and (c) with
the intent to induce the recipient to misuse his or her official position to
direct business wrongfully to such Borrower or its Subsidiary or to any other
Person, in violation of the Foreign Corrupt Practices Act, 15 U.S.C. §§ 78dd-1,
et seq.

 

Section 3.32           Regulation H.

 

No Mortgaged Property is
a Flood Hazard Property.

 

ARTICLE IV

 

CONDITIONS
PRECEDENT TO INITIAL CLOSING

 

                Section 4.1             Conditions to Closing and
Initial Extensions of Credit.

 

                This Agreement shall become
effective upon the satisfaction of the following conditions precedent (it being
understood and agreed that delivery by a Lender of an executed signature page to
this Agreement shall constitute its agreement that the conditions set forth in Section 4.1
have been satisfied):

 

(a)           Execution of
Credit Agreement; Credit Documents and Lender Consents.  The Administrative Agent shall have received (i) counterparts
of this Agreement, executed by a duly authorized officer of each party hereto, (ii) for
the account of each Revolving Lender requesting a promissory note, a Revolving
Note, (iii) for the account of each Term Loan Lender requesting a
promissory note, a Term Loan Note, (iv) for the account of the Swingline
Lender requesting a promissory note, a Swingline Note, (v) counterparts of
the Security Agreement, the Pledge Agreement and each Mortgage Instrument, in
each case conforming to the requirements of this Agreement and executed by duly
authorized officers of the Borrowers or other Person, as applicable, (vi) counterparts
of any other Credit Document, executed by the duly authorized officers of the
parties thereto and (vii) executed consents, in substantially the form of Exhibit 4.1-2,
from each Lender authorizing the Administrative Agent to enter this Credit
Agreement on their behalf.

 

(b)           Authority
Documents.  The Administrative Agent
shall have received the following:

 

 

 

 

 

68

 

(i)            Articles
of Incorporation/Charter Documents. 
Certified copies of the articles of incorporation or other charter
documents, as applicable, of each Borrower certified (A) by an officer of
such Borrower (pursuant to an officer’s certificate in substantially the form
of Exhibit 4.1(b) attached hereto) as of the Closing Date to
be true and correct and in force and effect as of such date, and (B) to be
true and complete as of a recent date by the appropriate Governmental Authority
of the state of its incorporation or organization, as applicable.

 

(ii)           Resolutions.
 Copies of resolutions of the board of
directors or comparable managing body of each Borrower approving and adopting
the Credit Documents, the transactions contemplated therein and authorizing
execution and delivery thereof, certified by an officer of such Borrower
(pursuant to an officer’s certificate in substantially the form of Exhibit 4.1-1
attached hereto) as of the Closing Date to be true and correct and in force and
effect as of such date.

 

(iii)          Bylaws/Operating
Agreement.  A copy of the bylaws or comparable
operating agreement of each Borrower certified by an officer of such Borrower
(pursuant to an officer’s certificate in substantially the form of Exhibit 4.1-1
attached hereto) as of the Closing Date to be true and correct and in force and
effect as of such date.

 

(iv)          Good
Standing.  State issued certificates
of good standing, existence or its equivalent with respect to each Borrower
certified as of a recent date by the appropriate Governmental Authorities of
the state of incorporation or organization and each other state in which the
failure to so qualify and be in good standing could reasonably be expected to
have a Material Adverse Effect.

 

(v)           Incumbency.  An incumbency certificate of each Borrower
certified by an officer (pursuant to an officer’s certificate in substantially
the form of Exhibit 4.1-1 attached hereto) to be true and correct
as of the Closing Date.

 

                (c)           Legal Opinions of Counsel.                The Administrative Agent shall
have received opinions of legal counsel (including local counsel to the extent
required by the Administrative Agent) for the Borrowers, dated the Closing Date
and addressed to the Administrative Agent and the Lenders, which opinions shall
provide, among other things, that the execution and delivery of the Credit
Documents will not result in a default and/or otherwise conflict with any
specified material agreements to which the Borrowers are a party or to which
their properties and/or assets are bound or the organizational documents of any
such Person, and which shall otherwise be in form and substance reasonably
acceptable to the Administrative Agent.

 

                (d)           Personal Property Collateral.  The Administrative Agent shall have received,
in form and substance reasonably satisfactory to the Administrative Agent:

 

                (i)            (A) searches of UCC filings in
the jurisdiction of incorporation or formation, as applicable, of each Borrower
and each jurisdiction where any Collateral is located or where a filing would
need to be made in order to perfect the Administrative Agent’s security
interest in the Collateral, copies of the financing statements on file in 

 

 

 

 

 

69

 

such jurisdictions and
evidence that no Liens exist other than Permitted Liens and (B) tax lien,
judgment and pending litigation searches;

 

                (ii)           UCC financing statements for each
appropriate jurisdiction as is necessary, in the Administrative Agent’s sole
discretion, to perfect the Administrative Agent’s security interest in the
Collateral;

 

                (iii)          searches
of ownership of Intellectual Property in the appropriate governmental offices
and such patent/trademark/copyright filings as requested by the Administrative
Agent in order to perfect the Administrative Agent’s security interest in the
Intellectual Property;

 

                (iv)          to
the extent not previously delivered to the Administrative Agent under the
Existing Credit Agreement, all stock or membership certificates, if any,
evidencing the Capital Stock pledged to the Administrative Agent pursuant to
the Pledge Agreement, together with duly executed in blank undated stock or
transfer powers attached thereto;

 

                (v)           to
the extent not previously delivered to the Administrative Agent under the
Existing Credit Agreement, all instruments (excluding checks) and chattel paper
in the possession of any of the Borrowers and their respective Subsidiaries,
together with allonges or assignments as may be necessary or appropriate to
perfect the Administrative Agent’s security interest in such instruments and
chattel paper;

 

                (vi)          with
respect to any Collateral held by a warehouseman or a bailee, such estoppel
letter, consent and waiver from such warehousemen or bailee as may be
reasonably required by the Administrative Agent;

 

                (vii)         in
the case of any warehouse, plant or other real property material to the business
of the Borrowers and their respective Subsidiaries that is leased by any such
Person, such estoppel letters, consents and waivers from the landlords on such
real property as may be required by the Administrative Agent;

 

                (viii)        with
respect to the deposit accounts and securities accounts of the Borrowers and
their respective Subsidiaries, such control agreements as may be required by
the Administrative Agent;

 

                (ix)           with
respect to any Material Contract (other than any Government Contract), such
collateral assignment and consent to collateral assignment as may be required
by the Administrative Agent; and

 

                (x)            such
other duly executed agreements or consents as are necessary, in the
Administrative Agent’s reasonable discretion, to perfect the Administrative
Agent’s security interest in the Collateral.

 

                (e)           Real Property Collateral.  The Administrative Agent shall have received,
in form and substance satisfactory to the Agents:

 

 

 

 

70

 

                (i)            fully executed and notarized
Mortgage Instruments encumbering the fee interest in the properties listed in Schedule
4.1-2 as properties owned by the Borrowers and their respective
Subsidiaries and, to the extent required by the Administrative Agent, the
leasehold interest in the properties listed in Schedule 4.1-2 as
Mortgaged Properties;

 

                (ii)           a title report in respect of each of
the Mortgaged Properties;

 

                (iii)          a Mortgage Policy with respect to each
of the Mortgaged Properties listed in Schedule 4.1-2 ;

 

                (iv)          evidence as to (A) whether any
Mortgaged Property is a Flood Hazard Property and (B) if any Mortgaged
Property is a Flood Hazard Property, (1) whether the community in which
such Mortgaged Property is located is participating in the National Flood
Insurance Program, (2) the applicable Borrower’s written acknowledgment of
receipt of written notification from the Administrative Agent (y) as to
the fact that such Mortgaged Property is a Flood Hazard Property and (z) as
to whether the community in which each such Flood Hazard Property is located is
participating in the National Flood Insurance Program and (3) copies of
insurance policies or certificates of insurance of the Borrowers and their
respective Subsidiaries evidencing flood insurance reasonably satisfactory to
the Administrative Agent and naming the Administrative Agent as loss payee on
behalf of the Lenders;

 

                (v)           maps or plats of an as-built survey
of (A) the sites of the owned Mortgaged Properties and (B) to the
extent reasonably required by the Administrative Agent, the leased Mortgaged
Properties, in each case certified to the Administrative Agent and the Title
Insurance Company in a manner reasonably satisfactory to them, dated a date
satisfactory to each of the Administrative Agent and the Title Insurance Company
by an independent professional licensed land surveyor selected by the Parent
Borrower and reasonably satisfactory to each of the Administrative Agent and
the Title Insurance Company, which maps or plats and the surveys on which they
are based shall be sufficient to delete any standard printed survey exception
contained in the applicable Mortgage Policy and be made in accordance with the
Minimum Standard Detail Requirements for Land Title Surveys jointly established
and adopted by the American Land Title Association and the American Congress on
Surveying and Mapping in 1992, and, without limiting the generality of the
foregoing, there shall be surveyed and shown on such maps, plats or surveys the
following: (1) the locations on such sites of all the buildings,
structures and other improvements and the established building setback lines; (2) the
lines of streets abutting the sites and width thereof; (3) all access and
other easements appurtenant to the sites necessary to use the sites; (4) all
roadways, paths, driveways, easements, encroachments and overhanging
projections and similar encumbrances affecting the site, whether recorded,
apparent from a physical inspection of the sites or otherwise known to the
surveyor; (5) any encroachments on any adjoining property by the building
structures and improvements on the sites; and (6) if the site is described
as being on a filed map, a legend relating the survey to such map;

 

 

 

 

 

 

 

 

71

 

 

                (vi)          satisfactory environmental reviews of
all owned Mortgaged Properties, including but not limited to Phase I
environmental assessments, together with reliance letters in favor of the
Lenders;

 

                (vii)         opinions of counsel to the Borrowers
and their respective Subsidiaries for each jurisdiction in which the Mortgaged
Properties are located;

 

                (viii)        to the extent readily available, zoning
letters from each municipality or other Governmental Authority for each
jurisdiction in which the Mortgaged Properties are located;

 

                (ix)           an appraisal of each owned Mortgaged
Property, in form and substance satisfactory to the Administrative Agent; and

 

                (x)            to the extent requested by the
Administrative Agent, with respect to each leased Mortgaged Property, (i) a
survey certified to the Administrative Agent by a firm of surveyors reasonably
satisfactory to the Administrative Agent and (ii) a landlord waiver in
form and substance satisfactory to the Administrative Agent.

 

(f)            Liability,
Casualty, Business Interruption and Error and Omission Insurance.  The Administrative Agent shall have received
copies of insurance policies or certificates and endorsements of insurance
evidencing liability, casualty, property and business interruption insurance
meeting the requirements set forth herein or in the Security Documents.  The Administrative Agent shall be named (i) as
additional loss payee, as its interest may appear, with respect to any such
insurance providing coverage in respect of any Collateral and (ii) as
additional insured, as its interest may appear, with respect to any such
insurance providing liability coverage, and the Borrowers will use their
commercially reasonable efforts to have each provider of any such insurance
agree, by endorsement upon the policy or policies issued by it or by
independent instruments to be furnished to the Administrative Agent, that it
will give the Administrative Agent thirty (30) days prior written notice
before any such policy or policies shall be altered or cancelled.

 

                (g)           Fees.  The Administrative Agent and the Lenders
shall have received all fees, if any, then owing pursuant to the Fee Letter and
Section 2.6.

 

                (h)           Litigation.  There shall not exist any material pending
litigation, investigation, bankruptcy or insolvency, injunction, order or claim
with respect to any Borrower or any of their respective Subsidiaries, this
Agreement or any of the other Credit Documents, that has not been settled,
dismissed, vacated, discharged or terminated prior to the Closing Date.

 

                (i)            Solvency Certificate.  The Administrative Agent shall have received
an officer’s certificate prepared by the chief financial officer of the Parent
Borrower as to the financial condition, solvency and related matters of each
Borrower and its Subsidiaries, in each case after giving effect the initial
borrowings under the Credit Documents, in substantially the form of Exhibit 4.1-3
hereto.

 

 

 

 

72

 

                (j)            Account Designation Notice.  The Administrative Agent shall have received
the executed Account Designation Notice in the form of Exhibit 1.1-1
hereto.

 

                (k)           Corporate Structure.  The corporate, capital and ownership
structure of the Borrowers and their respective Subsidiaries shall be as
described in Schedule 3.12, and shall otherwise be reasonably
satisfactory to the Administrative Agent and the Lenders.  The Administrative Agent and the Lenders
shall be reasonably satisfied with the management of the Borrowers and their
respective Subsidiaries and with all legal, tax, accounting, business and other
matters relating to the Borrowers and their respective Subsidiaries.

 

(l)            Consents.  The Administrative Agent shall have received
evidence that all governmental, shareholder, board of director and third party
consents and approvals necessary in connection with the financings and other
transactions contemplated hereby have been obtained and all applicable waiting
periods have expired without any action being taken by any authority that could
restrain, prevent or impose any material adverse conditions on such
transactions or that could seek or threaten any of such transactions.

 

(m)          Due Diligence.  The Administrative Agent and the Arrangers
shall have completed in form and scope reasonably satisfactory thereto their
business, legal, financial and environmental due diligence of the Borrowers and
their respective Subsidiaries (including due diligence relating to management,
strategy, material customers and contracts).

 

(n)           Compliance
with Laws.  The financings and other
transactions contemplated hereby shall be in compliance with all applicable
laws and regulations (including all applicable securities and banking laws, rules and
regulations).

 

(o)           Bankruptcy.  There shall be no bankruptcy or insolvency
proceedings with respect to the Parent Borrower or any of its Subsidiaries.

 

(p)           Material
Adverse Effect.  No material adverse
effect shall have occurred (i) since December 30, 2006 on  the business, operations, property or
financial condition of the Parent Borrower and its Subsidiaries taken as a
whole or (ii) on the ability of
any Borrower to perform its obligations, when such obligations are required to
be performed, under this Agreement, any of the Notes or any other Credit
Document.

 

(q)           Minimum Pro Forma EBITDA.  The Administrative Agent shall have received evidence
reasonably satisfactory thereto provided by the Parent Borrower that Pro Forma
EBITDA of the Borrowers and their respective Subsidiaries is not less than
$50,000,000.

 

(r)            Maximum Pro
Forma Leverage Ratio.  The
Administrative Agent shall have received evidence reasonably satisfactory
thereto provided by the Parent Borrower that the Leverage Ratio of the
Borrowers and their respective Subsidiaries, calculated for the twelve month
period ending September 29, 2007 on a Pro Forma Basis, is not greater than
2.35 to 1.00.

 

(s)           Officer’s
Certificates.  The Administrative
Agent shall have received a certificate executed by a Responsible Officer of
the Parent Borrower as of the Closing Date stating (and, 

 

 

73

 

with respect to clause
(ii)(C) below, demonstrating) that (i) except as disclosed to the
Administrative Agent in writing, there exists no pending or, to the knowledge
of any Borrower, threatened litigation, investigation, bankruptcy or
insolvency, injunction, order or claim affecting or relating to any Borrower or
any of their respective Subsidiaries, this Agreement and the other Credit
Documents, that has not been settled, dismissed, vacated, discharged or
terminated prior to the Closing Date and (ii) immediately after giving
effect to this Credit Agreement (including the initial Extensions of Credit
hereunder), the other Credit Documents and all the transactions contemplated
therein to occur on such date, (A) no Default or Event of Default exists, (B) all
representations and warranties contained herein and in the other Credit
Documents are true and correct in all material respects, and (C) the
Borrowers are in compliance with the initial levels in each of the financial
covenants set forth in Section 5.9, calculated (in the manner set forth on
Exhibit 4.1-4) for the twelve month period ending September 29,
2007.

 

(t)            Financial
Statements.  The Administrative Agent
shall have received copies of the financial statements and other financial
information referred to in Section 3.1 hereof, each in form and substance
satisfactory to it.

 

(u)           Termination of
Existing Funded Debt.  All existing
Funded Debt of the Parent Borrower and its Subsidiaries (other than the Funded
Debt listed on Schedule 6.1) shall have been repaid in full and
terminated and all Liens relating thereto shall have been terminated.

 

(v)           Federal
Assignment of Claims Act.  The
Borrowers shall have executed and delivered all documents necessary to comply
with the Federal Assignment of Claims Act and comparable state law with respect
to the accounts arising from the Material Government Contracts and such other
Government Contracts as reasonably required by the Administrative Agent (to the
extent not already delivered to the Administrative Agent under the Existing
Credit Agreement), such documents to be held in escrow by the Administrative
Agent in accordance with the terms of Section 5(f) of the Security Agreement.

 

(w)          Patriot Act
Certificate.  At least five (5) Business
Days prior to the Closing Date,  the
Administrative Agent shall have received a certificate satisfactory thereto,
substantially in the form of Exhibit 4.1-5, for benefit of itself
and the Lenders, provided by the Borrower that sets forth information required
by the Patriot Act including, without limitation, the identity of the
Borrowers, the name and address of the Borrowers and other information that
will allow the Administrative Agent or any Lender, as applicable, to identify
the Borrowers in accordance with the Patriot Act.

 

                (x)            Additional Matters.  All other documents and legal matters in
connection with the transactions contemplated by this Agreement shall be
reasonably satisfactory in form and substance to the Administrative Agent and
its counsel.

 

                Section 4.2             Conditions to All Extensions of
Credit.

 

                The obligation of each Lender to
make any Extension of Credit hereunder (other than the obligation of each
Lender to fund its portion of a Mandatory LOC Borrowing or a Mandatory
Swingline Borrowing, which shall be governed by the terms of Section 2.2
and Section 2.3, 

 

 

74

 

respectively) is
subject to the satisfaction of the following conditions precedent on the date
of making such Extension of Credit:

 

                (a)           Representations and Warranties.  The representations and warranties made by
the Borrowers herein, in the Security Documents or which are contained in any
certificate furnished at any time under or in connection herewith (i) that
contain a materiality qualification shall be true and correct on and as of the
date of such Extension of Credit as if made on and as of such date (except for
those which expressly relate to an earlier date) and (ii) that do not
contain a materiality qualification shall be true and correct in all material
respects on and as of the date of such Extension of Credit as if made on and as
of such date (except for those which expressly relate to an earlier date).

 

                (b)           No Default or Event of Default.  No Default or Event of Default shall have
occurred and be continuing on such date or after giving effect to such
Extension of Credit.

 

                (c)           Compliance
with Commitments.  Immediately after
giving effect to the making of any such Extension of Credit (and the
application of the proceeds thereof), (i) the sum of outstanding Revolving
Loans plus outstanding Swingline Loans plus outstanding LOC
Obligations shall not exceed the Revolving Committed Amount, (ii) the LOC
Obligations shall not exceed the LOC Committed Amount and (iii) the Swingline Loans shall not
exceed the Swingline Committed Amount.

 

                (d)           Additional Conditions to Revolving
Loans.  If a Revolving Loan is
requested, all conditions set forth in Section 2.1 shall have been satisfied.

 

                (e)           Additional Conditions to Letters
of Credit.  If the issuance of a
Letter of Credit is requested, all conditions set forth in Section 2.3
shall have been satisfied.

 

                (f)            Additional Conditions to
Swingline Loans.  If a Swingline Loan
is requested, all conditions set forth in Section 2.4 shall have been
satisfied.

 

                (g)           Additional Conditions to
Incremental Facility.  If an
Additional Loan is requested, all conditions set forth in Section 2.5
shall have been satisfied.

 

                Each request for an Extension of
Credit and each acceptance by the Borrowers of any such Extension of Credit
(other than the obligation of each Lender to fund its portion of a Mandatory
LOC Borrowing or a Mandatory Swingline Borrowing, which shall be governed by
the terms of Section 2.2 and Section 2.3, respectively) shall be
deemed to constitute representations and warranties by the Borrowers as of the
date of such Extension of Credit that the applicable conditions in paragraphs (a) through
(g) of this Section have been satisfied.

 

 

75

 

ARTICLE V

 

AFFIRMATIVE
COVENANTS

 

                The Borrowers hereby covenant
and agree that on the Closing Date, and thereafter for so long as this
Agreement is in effect and until the Commitments have terminated, no Note
remains outstanding and unpaid and the Borrowers’ Obligations together with
interest, Commitment Fees and all other amounts owing to the Administrative
Agent or any Lender hereunder, are paid in full, the Borrowers shall, and shall
cause each of their Subsidiaries (other than in the case of Sections 5.1, 5.2
or 5.7 hereof), to:

 

                Section 5.1             Financial Statements.

 

                Furnish to the
Administrative Agent for distribution to the Lenders:

 

                (a)           Annual Financial Statements.  As soon as available, but in any event within
ninety (90) days (or ninety-five (95) days if the Securities and Exchange
Commission has extended the deadline for the Parent Borrower to file its annual
financial statements on Form 10-K) after the end of each fiscal year of
the Parent Borrower (commencing with the fiscal year ending 2007), a copy of
the consolidated and consolidating (upon the reasonable request of the
Administrative Agent) balance sheet of the Parent Borrower and its consolidated
Subsidiaries as at the end of such fiscal year and the related consolidated and
consolidating (upon the reasonable request of the Administrative Agent)
statements of income and retained earnings and of cash flows of the Parent
Borrower and its consolidated Subsidiaries for such year which, other than in
the case of the consolidating statements (to the extent required), shall be
audited by a firm of independent certified public accountants of nationally
recognized standing reasonably acceptable to the Administrative Agent, setting
forth in each case in comparative form the figures for the previous year,
reported on without a “going concern” or like qualification or exception, or
qualification indicating that the scope of the audit was inadequate to permit
such independent certified public accountants to certify such financial
statements without such qualification.

 

                (b)           Quarterly Financial Statements.  As soon as available and in any event within
forty-five (45)  days (or fifty (50) days if the
Securities and Exchange Commission has extended the deadline for the Parent
Borrower to file its quarterly financial statements on Form 10-Q) after
the end of each of the first three fiscal quarters of each fiscal year of the
Parent Borrower (commencing with the fiscal year quarter ending March, 2008), a
copy of the consolidated and consolidating (upon the reasonable request of the
Administrative Agent) balance sheet of the Parent Borrower and its consolidated
Subsidiaries as at the end of such period and related consolidated and
consolidating (upon the reasonable request of the Administrative Agent)
statements of income and retained earnings and of cash flows for the Parent
Borrower and its consolidated Subsidiaries for such quarterly period and for
the portion of the fiscal year ending with such period, in each case setting
forth in comparative form consolidated and consolidating (to the extent
required) figures for the corresponding period or periods of the preceding
fiscal year and current year budget (subject to normal recurring year-end audit
adjustments).

 

 

76

 

                (c)           Annual Operating Budget and Cash
Flow.  As soon as available, but in
any event within thirty (30) days after the end of each fiscal year (commencing
with the fiscal year ending 2008), a copy of the detailed annual operating
budget or plan including cash flow projections of the Parent Borrower and its
Subsidiaries for the next four fiscal quarter period prepared on a quarterly
basis, in form and detail reasonably acceptable to the Administrative Agent and
the Lenders, together with a summary of the material assumptions made in the
preparation of such annual budget or plan.

 

The annual and
quarterly financial statements provided in accordance with subsections (a) and
(b) above (i) shall be complete and correct in all material respects
(subject, in the case of interim statements, to normal recurring year-end audit
adjustments), (ii) shall be prepared in reasonable detail and in
accordance with GAAP applied consistently throughout the periods reflected therein,
(iii) shall be accompanied by a description of, and an estimation of the
effect on such financial statements on account of, a change, if any, in the
application of accounting principles as provided in Section 1.3 and (iv) shall
be deemed delivered to the Administrative Agent upon the filing of such
financial statements with the Securities and Exchange Commission.

 

                Section 5.2             Certificates; Other Information.

 

                Furnish to the
Administrative Agent for distribution to the Lenders:

 

                (a)           concurrently with the delivery of the
financial statements referred to in Section 5.1(a) above, a
certificate of the independent certified public accountants reporting on such
financial statements stating that in making the examination necessary therefor
no knowledge was obtained of any Default or Event of Default, except as
specified in such certificate;

 

                (b)           concurrently with the delivery of the
financial statements referred to in Sections 5.1(a) and (b) above, a
certificate of a Responsible Officer in the form of Exhibit 4.1-4
stating that, to the best of such Responsible Officer’s knowledge, each of the
Borrowers during such period observed or performed in all material respects all
of its covenants and other agreements, and satisfied in all material respects
every condition contained in this Agreement to be observed, performed or
satisfied by it, and that such Responsible Officer has obtained no knowledge of
any Default or Event of Default except as specified in such certificate and
such certificate shall include the calculations in reasonable detail required
to indicate compliance with Section 5.9 as of the last day of such period
and that the financial information provided has been prepared in accordance
with GAAP applied consistently for the periods related thereto;

 

                (c)           within ninety (90) days after the end
of each fiscal year of the Parent Borrower, a certificate containing
information regarding the amount of all Asset Dispositions, Debt Issuances that
were made during the prior fiscal year and amounts received in connection with
any Recovery Event during the prior fiscal year;

 

                (d)           promptly upon receipt thereof, a copy
of any other report or “management letter” submitted or presented by
independent accountants to the Parent Borrower or any of its Subsidiaries in connection with any annual,
interim or special audit of the books of such Person;

 

 

77

 

(e)           [Intentionally
Omitted];

 

(f)            promptly after
the same are sent or upon their becoming available, copies of (i) all Securities
and Exchange Commission reports of the Borrowers, (ii) all financial
statements, reports, notices and proxy statements sent or made available by the
Parent Borrower to its public equity holders, and (iii) all regular and
periodic reports and all registration statements and prospectuses, if any,
filed by any of the Borrowers with any securities exchange or with the
Securities and Exchange Commission or any governmental or private regulatory
authority; provided that any such information shall be deemed delivered
to the Administrative Agent upon the filing of such information with the
Securities and Exchange Commission;

 

                (g)           (i) notice of the Parent
Borrower’s intention to proceed with a Permitted Acquisition not less than ten (10) Business
Days prior to the consummation of such Permitted Acquisition and (ii) prior
to the consummation of any Permitted Acquisition:

 

                (A)          a reasonably detailed description of
the material terms of such Permitted Acquisition (including, without
limitation, the purchase price and method and structure of payment) and of each
Target;

 

                (B)           with respect to any Target that would
account for, on a Pro Forma Basis, greater than or equal to 25% of the
Consolidated EBITDA of the Parent Borrower and its Subsidiaries for the twelve
month period most recently ended for which information has been provided
pursuant to Section 5.1(a) or 5.1(b), audited financial statements of
such Target for its two (2) most recent fiscal years prepared by
independent certified public accountants reasonably acceptable to the
Administrative Agent and unaudited fiscal year-to-date statements for the two (2) most
recent interim periods, in each case to the extent available for such Target;

 

                (C)           with respect to any Target that would
account for, on a Pro Forma Basis, less than 25% of the Consolidated EBITDA of
the Parent Borrower and its Subsidiaries for the twelve month period most
recently ended for which information has been provided pursuant to Section 5.1(a) or
5.1(b), audited financial statements or a financial review of such Target, as
applicable, for its two (2) most recent fiscal years prepared by
independent certified public accountants reasonably acceptable to the
Administrative Agent and, to the extent available for such Target, unaudited
fiscal year-to-date statements for the two (2) most recent interim
periods;

 

                (D)          consolidated projected income
statements of the Parent Borrower and its consolidated Subsidiaries (giving
effect to such Permitted Acquisition and the consolidation with the applicable Borrower
of each relevant Target) for the four (4)-year period following the
consummation of such Permitted Acquisition, in reasonable detail, together with
any appropriate statement of assumptions and pro forma adjustments reasonably
acceptable to the Administrative Agent;

 

                (E)           a certificate, in form and substance
reasonably satisfactory to the Administrative Agent, executed by a Responsible
Officer of the Parent Borrower (1) 

 

 

78

 

setting forth the
best good faith estimate of the Total Consideration to be paid for each Target,
(2) certifying that (y) such Permitted Acquisition complies with the
requirements of this Credit Agreement and (z) after giving effect to such
Permitted Acquisition and any borrowings in connection therewith, the Borrowers
believe in good faith that they will have sufficient availability under the
Revolving Commitments to meet the Borrowers’ ongoing working capital
requirements and (3) demonstrating compliance with clauses (b), (c), (d) and
(e) of the definition of the Permitted Acquisition; and

 

                (F)           any due diligence reports (including,
but not limited to, reports prepared by a firm of independent certified public
accountant of nationally recognized standing and customer surveys) prepared by,
or on behalf of, any Borrower with respect to the Target;

 

(h)           promptly upon the
request of the Administrative Agent, a back log report in form and substance
reasonably satisfactory to the Administrative Agent and consistent with back
log reports historically created by the Borrowers; and

 

                (i)            promptly, such additional financial
and other information (including, without limitation, information regarding
account concentration and other matters pertaining to Material Contracts and
details of billed and unbilled accounts receivable) as the Administrative
Agent, or any Lender through the Administrative Agent, may from time to time
reasonably request; provided, however, that in no event shall any
Borrower be required to provide the Administrative Agent or any Lender any
classified or other information provided to such Borrower by a Governmental
Authority that the Borrower is prohibited from disclosing pursuant to
applicable law or the direction of a Governmental Authority.

 

Any material to be
delivered pursuant to this Section 5.2 may be delivered electronically
directly to the Administrative Agent so long as such material is in a format
reasonably acceptable to the Administrative Agent, and such material shall be
deemed to have been delivered to the Administrative Agent upon the
Administrative Agent’s receipt thereof. 
Upon request of the Administrative Agent, the Borrowers shall deliver
paper copies there to the Administrative Agent.

 

                Section 5.3             Payment of Taxes.

 

                Pay, discharge or otherwise
satisfy at or before maturity or before they become delinquent, as the case may
be, all its taxes (Federal, state, local and any other taxes) and any
additional costs that are imposed as a result of any failure to so pay,
discharge or otherwise satisfy such taxes, except when the amount or validity
of any such taxes or additional costs are currently being contested in good
faith by appropriate proceedings and reserves, if applicable, in conformity
with GAAP with respect thereto have been provided on the books of the
Borrowers.

 

                Section 5.4             Conduct of Business and
Maintenance of Existence.

 

                Continue to engage in business
of the same general type as conducted by it on the Closing Date; preserve,
renew and keep in full force and effect its existence and good standing 

 

 

79

 

and take all
reasonable action to maintain all rights, privileges and franchises necessary
or desirable in the normal conduct of its business and to maintain its material
goodwill except to the extent that failure to maintain such rights, privileges
and franchises could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect; comply with all Contractual
Obligations and Requirements of Law applicable to it except to the extent that
failure to comply therewith could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

 

                Section 5.5             Maintenance of Property;
Insurance.

 

                (a)           Keep all material property useful and
necessary in its business in good working order and condition (ordinary wear
and tear and obsolescence excepted).

 

                (b)           Maintain with financially sound and
reputable insurance companies (i) liability insurance, (ii) insurance
on all its property (including without limitation its tangible Collateral), (iii) business
interruption insurance and (iv) error and omission insurance (covering
existing and future litigation), in each case insuring against at least such
risks as are usually insured against in the same general area by companies of a
similar size engaged in the same or a similar business; and furnish to the
Administrative Agent, upon written request, full information as to the
insurance carried.  The Administrative
Agent shall be named as additional loss payee or mortgagee, as its interest may
appear, or an additional insured, as applicable, with respect to such insurance
policies, and each provider of such insurance policies shall agree, by
endorsement upon the policy or policies issued by it or by independent instruments
furnished to the Administrative Agent, that it will give the Administrative
Agent thirty (30) days prior written notice before any such policy or policies
shall be altered or canceled.

 

                (c)           In
case of any material loss, damage to or destruction of the Collateral of any
Borrower or any part thereof, such Borrower shall promptly give written notice
thereof to the Administrative Agent generally describing the nature and extent
of such damage or destruction.  In case
of any loss, damage to or destruction of the Collateral of any Borrower or any
part thereof, such Borrower, whether or not the insurance proceeds, if any,
received on account of such damage or destruction shall be sufficient for that
purpose, at such Borrower’s cost and expense, (i) will promptly repair or
replace the Collateral of such Borrower so lost, damaged or destroyed or (ii) shall
apply such proceeds as set forth in Section 2.8(b)(iv).

 

                Section 5.6             Inspection of Property; Books
and Records; Discussions.

 

                (a)           Keep proper books of records and
accounts in which full, true and correct entries shall be made of all dealings
and transactions in relation to its businesses and activities, such entries to
be in conformity with GAAP and all Requirements of Law; and

 

                (b)           Permit, during regular business
hours, upon reasonable advance notice by the Administrative Agent or any Lender
and as often as may reasonably be desired, the Administrative Agent or any
Lender (or any agent or designee of the Administrative Agent or any Lender) to
visit and inspect (subject to any confidentiality and secrecy requirements
imposed by any Governmental Authority) any of its properties, examine and make
abstracts from or 

 

 

80

 

copies of any of
its books and records, conduct an audit of its accounts receivable and/or to
discuss the business, operations, accounts receivable, properties and financial
and other condition of the Borrowers and their Subsidiaries with officers and
employees of the Borrowers and with the Borrowers’ independent certified public
accountants; provided that (i) if a Default or Event of Default
shall have occurred and be continuing, the Administrative Agent or any Lender
shall have the right to  conduct such
visit and inspection at any time without advance notice, (ii) the
Borrowers shall have the right to have one or more representatives present
during any discussions with officers or employees of the Borrowers or with the
Borrower’s independent certified public accountants and (iii) Borrowers
shall only be responsible for the cost of one inspection or visit per year from
any Lender (other than the Administrative Agent).

 

                Section 5.7             Notices.

 

                Give prompt notice (but in any
event (x) within two (2) Business Days after any Borrower knows or
has reason to know of the events described in subsection (a) below and (y) within
five (5) Business Days after any Borrower knows or has reason to know of
any event described in subsections (b)-(j) below) thereof in writing to
the Administrative Agent and the Lenders (or to the Administrative Agent with
instructions to deliver same to the Lenders) of:

 

                (a)           the occurrence of any Default or
Event of Default;

 

                (b)           the occurrence of any default or
event of default under any Contractual Obligation of any Borrower or any of its
Subsidiaries which could reasonably be expected to have a Material Adverse
Effect or involve a monetary claim in excess of $5,000,000;

 

                (c)           any litigation or any investigation
or proceeding (i) affecting any Borrower or any of its Subsidiaries which,
if adversely determined, could reasonably be expected to have a Material
Adverse Effect or involve a monetary claim in excess of $5,000,000, (ii) affecting
or with respect to this Agreement or any other Credit Document or (iii) involving
an environmental claim or potential liability under Environmental Laws in
excess of $5,000,000;

 

                (d)           (i) the occurrence or expected
occurrence of any Reportable Event with respect to any Plan, a failure to make
any required contribution to a Plan, the creation of any Lien in favor of the
PBGC (other than a Permitted Lien) or a Plan or any withdrawal from, or the
termination, Reorganization or Insolvency of, any Multiemployer Plan or (ii) the
institution of proceedings or the taking of any other action by the PBGC or any
Borrower or any Commonly Controlled Entity or any Multiemployer Plan with
respect to the withdrawal from, or the terminating, Reorganization or
Insolvency of, any Plan;

 

                (e)           any notice of any material violation
of any Requirement of Law received by any Borrower or any of its Subsidiaries
from any Governmental Authority, including, without limitation, any notice of
violation of Environmental Laws;

 

                (f)            any labor controversy that has
resulted in, or threatens to result in, a strike or other work action against
any Borrower or any of its Subsidiaries which could reasonably be expected to
have a Material Adverse Effect;

 

 

81

 

                (g)           any attachment, judgment, lien, levy
or order exceeding $5,000,000 that may be assessed against or threatened
against any Borrower other than Permitted Liens;

 

                (h)           any other development or event that
could reasonably be expected to have a Material Adverse Effect; and

 

                (i)            receipt by a Borrower of (i) a
grand jury subpoena or (ii) a “show cause” notice from a Governmental
Authority.

 

Each notice pursuant to
this Section shall be accompanied by a statement of a Responsible Officer
setting forth details of the occurrence referred to therein and stating what
action the Borrowers propose to take with respect thereto.  In the case of any notice of a Default or
Event of Default, the Parent Borrower shall specify that such notice is a
Default or Event of Default notice on the face thereof.

 

                Section 5.8             Environmental Laws.

 

                (a)           Comply in all material respects with,
and take reasonable steps to ensure compliance in all material respects by all
tenants and subtenants, if any, with, all applicable Environmental Laws and
obtain and comply in all material respects with and maintain, and take reasonable
steps to ensure that all tenants and subtenants obtain and comply in all
material respects with and maintain, any and all licenses, approvals,
notifications, registrations or permits required by applicable Environmental
Laws except to the extent that failure to comply therewith could not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect;

 

                (b)           Conduct and complete all
investigations, studies, sampling and testing, and all remedial, removal and
other actions required under Environmental Laws and promptly comply in all
material respects with all lawful orders and directives of all Governmental
Authorities regarding Environmental Laws except to the extent that the same are
being contested in good faith by appropriate proceedings and the pendency of
such proceedings could not reasonably be expected to have a Material Adverse
Effect; and

 

                (c)           Defend, indemnify and hold harmless
the Administrative Agent and the Lenders, and their respective Affiliates,
employees, agents, officers and directors, from and against any and all claims,
demands, penalties, fines, liabilities, settlements, damages, costs and
expenses of whatever kind or nature known or unknown, contingent or otherwise,
arising out of, or in any way relating to the violation of, noncompliance with
or liability under, any Environmental Law applicable to the operations of the
Borrowers or any of their Subsidiaries or the Properties, or any orders,
requirements or demands of Governmental Authorities related thereto, including,
without limitation, reasonable attorney’s and consultant’s fees, investigation
and laboratory fees, response costs, court costs and litigation expenses,
except to the extent that any of the foregoing arise out of the gross
negligence, willful misconduct or unlawful acts of the party seeking
indemnification therefor as determined by a court of competent
jurisdiction.  The agreements in this
paragraph shall survive repayment of the Borrowers’ Obligations.

 

 

 

82

 

 

                Section 5.9             Financial Covenants.

 

                Comply with the
following financial covenants:

 

                (a)           Leverage Ratio. The Leverage
Ratio as of the last day of each fiscal quarter of the Parent Borrower and its
Subsidiaries shall be less than or equal to 3.75 to 1.0 at all times.

 

                (b)           Fixed Charge Coverage Ratio.
The Fixed Charge Coverage Ratio as of the last day of each fiscal quarter of
the Parent Borrower and its Subsidiaries shall be greater than or equal to 1.25
to 1.00.

 

                For purposes of computing the financial covenants set
forth in Section 5.9, for any applicable test period, any Permitted
Acquisition or permitted sale of assets (including a stock sale) shall have
been deemed to have taken place as of the first day of such applicable test
period (giving effect on such day to the incurrence or satisfaction of any
Funded Debt in connection with such acquisition).

 

                Section 5.10           Additional Subsidiary Borrowers.

 

                The
Borrowers will cause each of their Domestic Subsidiaries, whether newly formed,
after acquired or otherwise existing, to promptly (and in any event within
thirty (30) days after such Domestic Subsidiary is formed or acquired (or such
longer period of time as agreed to by the Administrative Agent in its
reasonable discretion)) become a Borrower hereunder by way of execution of a
Joinder Agreement.  In connection
therewith, the Borrowers shall give notice to the Administrative Agent not less
than fifteen (15) days prior to creating a Subsidiary, or acquiring the Capital
Stock of any other Person.  The Borrowers’
Obligations shall be secured by, among other things, a first priority perfected
security interest in the Collateral of the Additional Borrower and a pledge of
100% of the Capital Stock of the Additional Borrower and its Domestic
Subsidiaries and 65% (or such higher percentage that would not result in
material adverse tax consequences for such Additional Borrower) of the voting
Capital Stock and 100% of the non-voting Capital Stock of its first-tier
Foreign Subsidiaries.  In connection with
the foregoing, the Borrowers shall deliver to the Administrative Agent, with
respect to each Additional Borrower to the extent applicable, substantially the
same documentation required pursuant to Sections 4.1(b)-(f) and such other
documents or agreements as the Administrative Agent may reasonably request.  A Subsidiary that is formed or acquired after
the Closing Date shall only be deemed a “Borrower”, a “Subsidiary Borrower” or
a “Subsidiary” under this Agreement, and each of the other agreements
contemplated hereby, on and after the date such Subsidiary becomes a party to
this Agreement.

 

                Section 5.11           Compliance with Law.

 

                Each Borrower will, and will
cause each of its Subsidiaries to, comply with all laws, rules, regulations and
orders, and all applicable restrictions imposed by all Governmental
Authorities, applicable to it and its property if noncompliance with any such
law, rule, regulation, order or restriction could reasonably be expected to
have a Material Adverse Effect.

 

 

83

 

                Section 5.12           Pledged Assets.

 

                (a)           Each Borrower will, and will cause
each of its Subsidiaries to, cause 100% of the Capital Stock of each of its
direct or indirect Domestic Subsidiaries and 65% of the voting Capital Stock
and 100% of the non-voting Capital Stock of each of its first-tier Foreign
Subsidiaries to be subject at all times to a first priority, perfected Lien in
favor of the Administrative Agent for the ratable benefit of the Lenders
pursuant to the terms and conditions of the Security Documents or such other
security documents as the Administrative Agent shall reasonably request.

 

                                                                (b)           If,
subsequent to the Closing Date, a Borrower shall acquire any securities,
instruments (except checks), chattel paper or other personal property with a
value in excess of $50,000 required for perfection and/or priority to be
delivered to the Administrative Agent as Collateral hereunder or under any of
the Security Documents, the Borrower shall promptly (and in any event within
three (3) Business Days) after such acquisition notify the Administrative
Agent in writing of same.  Each Borrower
shall, and shall cause each of its Subsidiaries to, take such action at its own
expense as may be necessary or otherwise requested by the Administrative Agent
(including, without limitation, any of the actions described in Sections 4.1(d) and
(e) hereof) to ensure that the Administrative Agent has a first priority
perfected Lien to secure the Borrowers’ Obligations in (i) all personal
property Collateral of the Borrowers located in the United States, (ii) to
the extent deemed to be material by the Administrative Agent in its reasonable
discretion, all other personal property Collateral of the Borrowers and (iii) to
the extent required by the Administrative Agent in its reasonable discretion,
all real property owned by the Borrowers, subject in each case only to
Permitted Liens.

 

                (c)           If, subsequent to the Closing Date, a
Borrower acquires a fee interest in any real property with a value in excess of
$1,000,000, such Borrower shall deliver to the Administrative Agent within 90
days following the date of such acquisition, such Mortgage Instruments and
other documentation as necessary to perfect the Administrative Agent’s security
interest therein in accordance with the provisions of Section 4.1(e).

 

                (d)           If, subsequent to the Closing Date, a
Borrower leases a warehouse, plant or other real property material to such
Borrower’s business, such Borrower shall deliver to the Administrative Agent
within 90 days following the date of such lease such estoppel letters, consents
and waivers from the landlord on such real property as may be required by the
Administrative Agent or to the extent deemed necessary by the Administrative
Agent, leasehold mortgages in accordance with the provisions of Section 4.1(d) and
(e).

 

                Section 5.13           Covenants Regarding Intellectual
Property.

 

                (a)           Concurrent with the delivery of the
Parent Borrower’s quarterly and annual financial statements pursuant to Section 5.1(a) and
(b)  hereof, each Borrower shall notify the Administrative Agent if it
knows that any application, letters patent or registration relating to any
material Patent, Patent License, Trademark or Trademark License of such
Borrower or any of its Subsidiaries may become abandoned, or of any adverse
determination or development 

 

 

84

 

(including,
without limitation, the institution of, or any such determination or
development in, any proceeding in the United States Patent and Trademark Office
or any court) regarding such Borrower’s or any of its Subsidiary’s ownership of
any material Patent or Trademark, its right to patent or register the same, or
to enforce, keep and maintain the same, or its rights under any material Patent
License or Trademark License.

 

                (b)           Concurrent with the delivery of the
Parent Borrower’s quarterly and annual financial statements pursuant to Section 5.1(a) and
(b)  hereof, each Borrower shall notify the Administrative Agent after it
knows of any adverse determination or development (including, without
limitation, the institution of, or any such determination or development in,
any proceeding in any court) regarding any material Copyright or Copyright
License of such Borrower or any of its Subsidiaries, whether (i) such
material Copyright or Copyright License may become invalid or unenforceable
prior to its expiration or termination, or (ii) such Borrower’s or any of
its Subsidiary’s ownership of such material Copyright, its right to register
the same or to enforce, keep and maintain the same, or its rights under such
material Copyright License, may become adversely affected in any material
respect.

 

                                                                (c)           (i)            Concurrent
with the delivery of the Parent Borrower’s quarterly and annual financial
statements pursuant to Section 5.1(a) and (b)  hereof, each
Borrower shall notify the Administrative Agent of any filing by such Borrower
or any of its Domestic Subsidiaries, either itself or through any agent,
employee, licensee or designee, of any application for registration of any
Intellectual Property (other than Intellectual Property of de minimus value)
with the United States Copyright Office or United States Patent and Trademark
Office or any similar office or agency in any other country or any political
subdivision thereof.

 

                (ii)           Concurrent with the delivery of the
quarterly and annual financial statements of the Borrower pursuant to Section 5.1(a) and
(b) hereof, the Borrower shall provide to the Administrative Agent and its
counsel a complete and correct list in all material respects of all new
Intellectual Property (other than Intellectual Property of de minimus value)
owned by or licensed to the Borrower or any of its Domestic Subsidiaries with
respect to which the Administrative Agent has not filed a notice of grant of
security interest with the United States Patent and Trademark Office or the
United States Copyright Office or any similar office or agency in any other
country or any political subdivision thereof, as applicable.

 

                (iii)          Upon request of the Administrative
Agent, each Borrower shall execute and deliver any and all agreements,
instruments, documents, and papers as the Administrative Agent may reasonably
request to evidence the Administrative Agent’s security interest in the
Intellectual Property and the general intangibles (other than Intellectual
Property of de minimus value) referred to in clauses (i) and (ii) above
(including goodwill) related thereto or represented thereby.

 

                (d)           The Borrowers and their Subsidiaries (i) will
take all necessary actions, including, without limitation, in any proceeding
before the United States Patent and Trademark Office or the United States
Copyright Office, to obtain the relevant registration for and to maintain each
material item of Intellectual Property of the Borrowers and their Subsidiaries,
including, without 

 

 

85

 

limitation, payment of
application and maintenance fees, filing of applications for renewal,
affidavits of use, affidavits of incontestability and opposition, interference
and cancellation proceedings; provided, that the Borrowers shall have
the right to abandon any item of Intellectual Property which the Borrowers
determine is no longer of significant value or useful or necessary to the
business of the Borrowers and their Subsidiaries or if the cost to maintain or
defend such item of Intellectual Property is uneconomic considering its value
or its significance to the business of the Borrowers and their Subsidiaries,
and (ii) except as provided in the foregoing proviso in subsection (i) above,
will not take any action whereby any material item of Intellectual Property may
become invalidated, abandoned or dedicated, including, without limitation, any
action whereby any material Copyright may become injected into the public
domain.

 

                (e)           In the event that any Borrower
becomes aware that any material Intellectual Property is infringed,
misappropriated or diluted by a third party in any material respect, such
Borrower shall notify the Administrative Agent promptly after it learns thereof
and shall, unless such Borrower shall reasonably determine that such
Intellectual Property is not material to the business of the Borrowers and
their Subsidiaries taken as a whole, or as to which the Borrower reasonably
concludes that the cost of such proceeding or its likelihood of success does
not justify such prosecution, promptly sue for infringement, misappropriation
or dilution and to recover any and all damages for such infringement,
misappropriation or dilution, and take such other actions as such Borrower
shall reasonably deem appropriate under the circumstances to protect such
Intellectual Property.

 

                Section 5.14           Deposit and Securities Accounts.

 

                Schedule 5.14 sets forth
each of the deposit and securities accounts of the Borrowers as of the Closing
Date. The Borrowers shall maintain each of their deposit and securities
accounts with (a) a Lender, (b) a financial institution that shall
have entered into an account control agreement in form and substance
satisfactory to the Administrative Agent or (c) any other Person or
Persons so long as the amount of the deposits and securities held at such
Person or Persons does not exceed $500,000 in the aggregate.  Without limiting the foregoing requirements,
upon the request of the Administrative Agent or upon the occurrence of an Event
of Default, the Borrowers shall promptly execute such account control
agreements and/or other documentation as deemed necessary by the Administrative
Agent to perfect and to obtain or maintain the priority of the Administrative
Agent’s security interest in all of the Borrowers’ deposit and securities
accounts.

 

Section 5.15           Federal Assignment of Claims Act.

 

                The Borrowers will execute all documents necessary to
comply with the Federal Assignment of Claims Act and comparable state law with
respect to the accounts arising from any Material Government Contract where the
aggregate value of goods or services to be provided thereunder exceeds
$10,000,000 over the remaining term of such contract and such other Government
Contracts as reasonably required by the Administrative Agent (to the extent not
already delivered to the Administrative Agent), in each case within 60 days (or
such extended period of time as agreed to by the Administrative Agent) after
entering into such Material Government Contract or, with respect to any other
Government Contract, after the 

 

 

86

 

Administrative Agent
requires such documents with respect to such Government Contract, such
documents to be held in escrow by the Administrative Agent in accordance with
the terms of Section 5(f) of the Security Agreement.

 

Section 5.16           Further Assurances.

 

(a)           Public/Private
Designation.  The Borrowers will
cooperate with the Administrative Agent in connection with the publication of
certain materials and/or information provided by or on behalf of the Borrowers
to the Administrative Agent and Lenders (collectively, “Information
Materials”) pursuant to this Article V and will designate Information Materials (i) that are either available
to the public or not material with respect to the Borrowers and their  Subsidiaries or any of their respective
securities for purposes of United States federal and state securities laws, as “Public
Information” and (ii) that are not Public Information as “Private
Information”.

 

(b)           Additional Information. 
The Borrowers shall provide such information regarding the operations,
business affairs and financial condition of the Borrowers and their
Subsidiaries as the Administrative Agent or any Lender may reasonably request.

 

(c)           Visits and
Inspections.  The Borrowers shall
permit representatives of the Administrative Agent or any Lender, from time to
time upon prior reasonable notice and at such times during normal business
hours, to visit and inspect its properties; inspect, audit and make extracts
from its books, records and files, including, but not limited to, management
letters prepared by independent accountants; and discuss with its principal
officers, and its independent accountants, its business, assets, liabilities,
financial condition, results of operations and business prospects; provided
that so long as no Default or Event of Default has occurred and is continuing,
such visits and inspections shall be limited to no more than two (2) times
per year in the aggregate.  Upon the
occurrence and during the continuance of an Event of Default, the
Administrative Agent or any Lender may do any of the foregoing at any time
without advance notice.

 

(d)           Landlord
Waivers.  Within ninety (90) days
following the Closing Date, the Administrative Agent shall have received, in
form and substance satisfactory to the Administrative Agent, in the case of any
personal property Collateral located at premises leased by a Borrower such
estoppel letters, consents and waivers from the landlords of such real property
to the extent the Borrowers are able to secure such letters, consents and
waivers after using commercially reasonable efforts (such letters, consents and
waivers shall be in form and substance satisfactory to the Administrative
Agent).

 

(e)           Further
Assurances.  Upon the reasonable
request of the Administrative Agent, promptly perform or cause to be performed
any and all acts and execute or cause to be executed any and all documents for
filing under the provisions of the Uniform Commercial Code or any other
Requirement of Law which are necessary or advisable to maintain in favor of the
Administrative Agent, for the benefit of the Secured Parties, Liens on the
Collateral that are duly perfected in accordance with the requirements of, or
the obligations of the Borrowers under, the Credit Documents and all applicable
Requirements of Law.

 

 

87

 

ARTICLE VI

 

NEGATIVE COVENANTS

 

                The Borrowers hereby covenant
and agree that on the Closing Date, and thereafter for so long as this
Agreement is in effect and until the Commitments have terminated, no Note
remains outstanding and unpaid and the Borrowers’ Obligations together with
interest, Commitment Fee and all other amounts owing to the Administrative
Agent or any Lender hereunder, are paid in full that:

 

                Section 6.1             Indebtedness.

 

                Each of the Borrowers will not,
nor will it permit any Subsidiary to, contract, create, incur, assume or permit
to exist any Indebtedness, except:

 

                (a)           Indebtedness arising or existing
under this Agreement and the other Credit Documents;

 

                (b)           Indebtedness existing as of the
Closing Date set forth in Schedule 6.1 hereto and renewals, refinancings
or extensions thereof in a principal amount not in excess of that outstanding
as of the date of such renewal, refinancing or extension;

 

                (c)           Indebtedness incurred after the
Closing Date consisting of Capital Leases or Indebtedness incurred to provide
all or a portion of the purchase price or cost of construction of an asset; provided
that (i) such Indebtedness when incurred shall not exceed the purchase
price or cost of construction of such asset; (ii) no such Indebtedness
shall be refinanced for a principal amount in excess of the principal balance
outstanding thereon at the time of such refinancing; and (iii) the total amount of all such Indebtedness shall not
exceed $3,000,000 at any time outstanding;

 

                (d)           Unsecured intercompany Indebtedness
among the Borrowers; provided that any such Indebtedness shall be  fully subordinated to the Borrowers’
Obligations hereunder on terms reasonably satisfactory to the Administrative
Agent;

 

                (e)           Indebtedness and obligations owing
under Secured Hedging Agreements and other Hedging Agreements entered into in
order to manage existing or anticipated interest rate or exchange rate risks
and not for speculative purposes;

 

                (f)            Indebtedness and obligations of
Borrowers owing under documentary letters of credit for the purchase of goods
or other merchandise (but not under standby, direct pay or other letters of
credit except for the Letters of Credit permitted hereunder) generally;

 

 

88

 

                (g)           Indebtedness that may be deemed to
exist pursuant to any bid, performance bond, surety appeal, or similar
obligation entered into or incurred by any Borrower in the ordinary course of
business;

 

                (h)           (i) subordinated Indebtedness
(on substantially the terms and conditions as are satisfactory to the
Administrative Agent) consisting of seller notes, earnout obligations or
deferred payments incurred in connection with Permitted Acquisitions that
constitutes all or a portion of the Total Consideration for such Permitted
Acquisitions and (ii) Indebtedness assumed in connection with Permitted
Acquisitions (including Indebtedness of a Person existing at the time such
Person becomes a Subsidiary) that constitutes all or a portion of the Total
Consideration for such Permitted Acquisitions, so long as such Indebtedness was
not incurred in contemplation of any such Permitted Acquisition; provided
that the total Indebtedness in clauses (i) and (ii) above shall not
exceed $40,000,000 outstanding at any time during the term of this Agreement
and not more than $20,000,000 of such Indebtedness may be of the type described
in clause (ii);

 

                (i)            subordinated Indebtedness of any
Borrower (other than Permitted Acquisition Subordinated Indebtedness); provided
that (i) the Borrowers are in compliance on a Pro Forma Basis with all of
the terms and provisions of the financial covenants set forth in Section 5.9,
(ii) such Indebtedness shall be
unsecured, (iii) such Indebtedness shall be fully subordinated to the
Borrowers’ Obligations in a manner reasonably acceptable to the Administrative
Agent, (iv) the representations, covenants and events of default in
respect of such Indebtedness (other than interest rate and fees) are no more
restrictive on the obligor thereon than the representations, covenants and
Events of Default hereof and (v) the maturity date of such Indebtedness
shall be no earlier than six months following the Maturity Date and such
Indebtedness shall not be subject to amortization or prepayment prior to such
date (other than in the case of a bankruptcy of a Borrower);

 

                (j)            Guaranty Obligations of any Borrower
with respect to obligations of a Borrower to suppliers, licensors or lessors to
the extent such obligations are incurred in the ordinary course of business and
otherwise permitted hereunder; and

 

                (k)           other Indebtedness of the Borrowers
and their Subsidiaries that does not exceed $10,000,000 in the aggregate at any
time outstanding.

 

                Section 6.2             Liens.

 

                Each of the Borrowers will not,
nor will it permit any Subsidiary to, contract, create, incur, assume or permit
to exist any Lien with respect to any of its property or assets of any kind
(whether real or personal, tangible or intangible), whether now owned or
hereafter acquired, except for Permitted Liens. 
Notwithstanding the foregoing, if a Borrower shall grant a Lien on any
of its assets in violation of this Section 6.2, then it shall be deemed to
have simultaneously granted an equal and ratable Lien on any such assets in
favor of the Administrative Agent for the ratable benefit of the Lenders, to
the extent such a Lien has not already been granted to the Administrative
Agent.

 

 

 

89

 

                Section 6.3             Nature of Business.

 

                Each of the Borrowers will not,
nor will it permit any Subsidiary to, alter the character of its business in
any material respect from that conducted as of the Closing Date.

 

                Section 6.4             Consolidation, Merger, Sale or
Purchase of Assets, etc.

 

                Each of the
Borrowers will not, nor will it permit any Subsidiary to:

 

                (a)           dissolve, liquidate or wind up its
affairs, sell, transfer, lease to a third party or otherwise dispose of its
property or assets or agree to do so at a future time except the following,
without duplication, shall be expressly permitted:

 

                                                                (i)            Specified
Sales;

 

                                                                (ii)           the
disposition of property or assets as a result of a Recovery Event;

 

                (iii)          the termination of any Hedging
Agreement permitted pursuant to Section 6.1;

 

                                                                (iv)          the
sale, lease, transfer or other disposition of property and assets no longer
used or useful in the conduct of the business of the Borrower or any of its
Subsidiaries (including the disposition of superfluous, obsolete or uneconomic
property and/or assets acquired in connection with any Permitted Acquisition,
subject to the provisions of Section 2.8(b)(ii));

 

                                                                (v)           the
sale, lease or transfer of property or assets between Borrowers, so long as the
Liens of the Administrative Agent for the ratable benefit of the Lenders with
respect to such property or assets remain in full force and effect and fully
perfected after giving effect to such transaction and the attachment and
priority of such Liens remains unchanged;

 

                                                                (vi)          the
sale, lease or transfer of property or assets (in addition to that permitted by
clause (iv) above) not to exceed $2,000,000 in the aggregate in any fiscal
year and $5,000,000 in the aggregate during the term of this Agreement; and

 

                                                                (vii)         the
sale, grant or transfer of licenses and sublicenses in the ordinary course of
business;

 

                                                provided, that in each case (other than with respect to clause
(v) above) (A) at least 50% of the consideration received therefor by
any Borrower or any such Subsidiary shall be in the form of cash or Cash
Equivalents, (B) after giving effect to the sale, lease, transfer or other
disposition of such property or assets and the repayment of Indebtedness (if
any) with the proceeds thereof, the Borrowers shall be in compliance on a Pro
Forma Basis with the financial covenants set forth in Section 5.9 hereof
and shall be in compliance with all other terms and conditions of this
Agreement, and (C) no Event of Default shall 

 

 

90

 

exist or shall
result from such sale, lease, transfer or other disposition of property or
assets; provided, further, that with respect to any sale or
transfer of property or assets permitted hereunder to an unrelated third party,
the Administrative Agent shall be entitled, without the consent of the Lenders
or the Required Lenders, to release its Liens relating to the particular
property or assets sold; or

 

                (b)           (i) purchase, lease or otherwise
acquire (in a single transaction or a series of related transactions) the
property or assets of any Person (other than purchases or other acquisitions of
inventory, materials, property, equipment and intellectual property in the
ordinary course of business, except as otherwise limited or prohibited herein)
or (ii) enter into any transaction of merger or consolidation, except for (A) investments
or acquisitions (including Permitted Acquisitions) permitted pursuant to Section 6.5,
and (B) the merger or consolidation of a Borrower with and into another
Borrower; provided that if the Parent Borrower is a party thereto, the
Parent Borrower will be the surviving corporation.

 

                Section 6.5             Advances, Investments and Loans.

 

                Each of the Borrowers will not,
nor will it permit any Subsidiary to, make any Investment (including, without
limitation, lending money or extending credit or making advances to any Person,
or purchasing or acquiring any Capital Stock, obligations or securities of, or
any other interest in, or making any capital contribution to, any Person)
except for Permitted Investments.

 

                Section 6.6             Transactions with Affiliates.

 

                Except as permitted in
subsection (d) of the definition of Permitted Investments and as it
relates to reasonable compensation and employment arrangements approved by the
board of directors of each Borrower, each of the Borrowers will not, nor will
it permit any Subsidiary to, enter into any transaction or series of
transactions (other than compensation, bonus and benefit arrangements for
employees approved by the board of directors of the Parent Borrower, and
reasonable and customary directors’ fees, indemnification and similar
arrangements and payments thereunder), whether or not in the ordinary course of
business, with any officer, director, shareholder or Affiliate other than on
terms and conditions substantially as favorable as would be obtainable in a
comparable arm’s-length transaction with a Person other than an officer,
director, shareholder or Affiliate.

 

                Section 6.7             Ownership of Subsidiaries;
Restrictions.

 

                Each of the Borrowers will not,
nor will it permit any Subsidiary to, create, form or acquire any Subsidiaries
(excluding for purposes hereof a Subsidiary that is created for the purposes of
acquiring a Person in connection with a Permitted Acquisition to the extent
such Subsidiary is merged with or into such Person upon the consummation of
such Permitted Acquisition and the surviving Person becomes a Borrower
hereunder pursuant to Section 5.10 hereof), except for wholly-owned
Domestic Subsidiaries that are joined as Additional Borrowers in accordance
with the terms hereof.  Each of the
Borrowers (other than the Parent Borrower to the extent not otherwise
prohibited hereunder) will not, nor will it permit any Subsidiary to, sell,
transfer, pledge or otherwise dispose of any Capital Stock or other equity
interests in any of its 

 

 

91

 

Subsidiaries, nor
will it, or permit any Subsidiary to, issue, sell, transfer, pledge or
otherwise dispose of any of its Capital Stock or other equity interests, except
as required by the Credit Documents or pursuant to a transaction permitted by Section 6.4(a)(iv).

 

Section 6.8                                      Fiscal Year;
Accounting Policies; Organizational Documents; Material Contracts.

 

                Each of the Borrowers will not,
nor will it permit any of its Subsidiaries to, (a) change its fiscal year
without providing the Administrative Agent 30 days’ prior written notice of any
such change and, to the extent required under the Securities Exchange Act of
1934 or otherwise required by the Securities Exchange Commission or in
connection with the filings of the Borrowers and their Subsidiaries with the
Securities Exchange Commission, restating the financial statements and other
information described in Section 5.1 with respect to such change or (b) except
in accordance with GAAP or as required to improve internal controls over
financial reporting or otherwise comply with the Sarbanes-Oxley Act of 2002,
make any material change its accounting policies used in preparing the
financial statements and other information described in Section 5.1.  Each of the Borrowers will not, nor will they
permit any of its Subsidiaries to, amend, modify or change their articles of
incorporation (or corporate charter or other similar organizational document),
operating agreement, bylaws (or other similar document) or other agreements or
documents with respect to its Capital Stock in any material respect without the
prior written consent of the Required Lenders. Each of the Borrowers will not,
nor will it permit any of its Subsidiaries to,
without the prior written consent of the Administrative Agent, amend,
modify, cancel or terminate or fail to renew or extend or permit the amendment,
modification, cancellation or termination of any of the Material Contracts
(other than in the ordinary course of business), except in the event that such
amendments, modifications, cancellations or terminations could not, either
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

 

                Section 6.9             Limitation on Restricted Actions.

 

                Each of the Borrowers will not,
nor will it permit any Subsidiary to, directly or indirectly, create or
otherwise cause or suffer to exist or become effective any encumbrance or
restriction on the ability of any such Person to (a) pay dividends or make any other distributions to any
Borrower on its Capital Stock or with respect to any other interest or
participation in, or measured by, its profits,
(b) pay any Indebtedness or other obligation owed to any Borrower, (c) make loans or advances to any
Borrower, (d) sell, lease or
transfer any of its properties or assets to any Borrower, or (e) act as a Borrower and pledge its
assets pursuant to the Credit Documents or any renewals, refinancings,
exchanges, refundings or extension thereof, except (in respect of any of the
matters referred to in clauses (a)-(e) above) for such encumbrances or
restrictions existing under or by reason of (i) this Agreement and the other
Credit Documents, (ii) applicable law or regulations,  (iii) any
document or instrument governing Indebtedness incurred pursuant to Section 6.1(c);
provided that any such restriction contained therein relates only to the
asset or assets constructed or acquired in connection therewith, (iv) any Permitted Lien or any
document or instrument governing any Permitted Lien; provided that any
such restriction contained therein relates only to the asset or assets subject
to such Permitted Lien or (v) any such encumbrance or restriction
consisting of customary non-assignment provisions in 

 

 

92

 

leases or licenses
restricting leasehold interests or licenses, as applicable, entered into in the
ordinary course of business.

 

                Section 6.10           Restricted Payments.

 

Each of the Borrowers will not, nor will it permit any Subsidiary to,
directly or indirectly, declare, order, make or set apart any sum for or pay
any Restricted Payment, except:

 

(a)           to make dividends
payable solely in the form of common stock or equivalent equity interests of
such Person;

 

(b)           to make dividends or
other distributions payable to any Borrower (directly or indirectly through
Subsidiaries);

 

(c)           to make earn-out and other deferred payments with
respect to any Permitted Acquisition at any time (including payment in full) so
long as (A) no Default or Event of Default exists (other than as a result
of a cross-default to the Subordinated Debt that is triggered by a payment
default under the Subordinated Debt or any other default under the Subordinated
Debt that has been cured or waived before, or on condition of, the payment) or
would result from any such payment and (B) after giving effect to any such
payment, (1) the Borrowers are in compliance with all financial covenants
set forth in Section 5.9 on a Pro Forma Basis and (2) the Borrowers
shall have no less than $15,000,000 of aggregate liquidity between (y) the
borrowing availability under the Revolving Committed Amount and (z) cash
on the balance sheet of the Borrowers not subject to a reserve or other
restriction.

 

(d)           to make other Restricted Payments not
contemplated by the foregoing subsections of this Section 6.10 in an
aggregate amount not to exceed $25,000,000 during any twelve month period; provided
that, both before and after giving effect to any Restricted Payment pursuant to
this Section 6.10(d), on a Pro Forma Basis, (i) no Default or Event
of Default shall exist, (ii) the Borrowers shall be in compliance with all
financial covenants set forth in Section 5.9 and (iii) the Borrowers
shall have no less than $15,000,000 of aggregate liquidity between (A) the
Revolving Committed Amount and (B) cash on the balance sheet of the
Borrowers not subject to a reserve or other restriction.

 

                Section 6.11           Sale Leasebacks.

 

                Each of the Borrowers will not,
nor will it permit any Subsidiary to, directly or indirectly, become or remain
liable as lessee or as guarantor or other surety with respect to any lease,
whether an Operating Lease or a Capital Lease, of any property (whether real,
personal or mixed), whether now owned or hereafter acquired, (a) which any Borrower or any of its
Subsidiaries has sold or transferred or is to sell or transfer to a Person that
is not a Borrower or a Subsidiary thereof or
(b) which any Borrower or any of its Subsidiaries intends to use
for substantially the same purpose as any other property that has been sold or
is to be sold or transferred by any Borrower or any of its Subsidiaries to
another Person that is not a Borrower or Subsidiary thereof in connection with
such lease.

 

 

 

93

 

 

                Section 6.12           No Further Negative Pledges.

 

                Each of the Borrowers will not,
nor will it permit any Subsidiary to, enter into, assume or become subject to
any agreement prohibiting or otherwise restricting the creation or assumption
of any Lien upon its properties or assets, whether now owned or hereafter
acquired, or requiring the grant of any security to secure obligations under
such agreement if security is given for some other obligation, except (a) pursuant to this Agreement and
the other Credit Documents, (b) pursuant
to any document or instrument governing Indebtedness incurred pursuant to Section 6.1(c);
provided that any such restriction contained therein relates only to the
asset or assets constructed or acquired in connection therewith, (c) in connection with any Permitted
Lien or any document or instrument governing any Permitted Lien; provided
that any such restriction contained therein relates only to the asset or assets
subject to such Permitted Lien, and (d) restrictions on the creation of Liens
on Government Contracts under applicable laws.

 

                Section 6.13           Amendment of Subordinated
Indebtedness.

 

                Each of the Borrowers will not,
nor will it permit any Subsidiary to, after the issuance thereof, amend or
modify (or permit the amendment or modification of) any of the terms of any
Subordinated Debt of such Borrower or Subsidiary if such amendment or
modification would add or change any terms in a manner adverse to the Lenders,
or shorten the final maturity or average life to maturity or require any
payment to be made sooner than originally scheduled or increase the interest
rate applicable thereto or change any subordination provision thereof.

 

Section 6.14           Management Fees.

 

Each of the Borrowers
will not, nor will it permit any Subsidiary to, directly or indirectly, pay any
management, consulting or similar fees to any Affiliate or to any manager,
director, officer or employee of the Borrowers or any of their Subsidiaries
without the prior written consent of the Administrative Agent.

 

 

ARTICLE VII

 

EVENTS OF DEFAULT

 

                Section 7.1             Events of Default.

 

                An Event of
Default shall exist upon the occurrence of any of the following specified
events (each an “Event of Default”):

 

                (a)           Payment. (i) The
Borrowers shall fail to pay any principal on any Loan when due (whether at
maturity, by reason of acceleration or otherwise) in accordance with the terms
hereof; or (ii) the Borrowers shall fail to reimburse the Issuing Lender
for any LOC Obligations when due (whether at maturity, by reason of
acceleration or otherwise) in accordance with the terms hereof; or (iii) the
Borrowers shall fail to pay any interest on any Loan or other Borrowers’
Obligations or any fee or other amount payable hereunder when due (whether at
maturity, by 

 

 

94

 

reason of
acceleration or otherwise) in accordance with the terms hereof and such failure
to pay shall continue unremedied for five (5) Business Days.

 

                (b)           Misrepresentation. Any
representation or warranty made or deemed made herein, in the Security
Documents or in any of the other Credit Documents or which is contained in any
certificate, document or financial or other statement furnished at any time
under or in connection with this Agreement shall prove to have been incorrect,
false or misleading in any material respect on or as of the date made or deemed
made.

 

                (c)           Covenant Default. (i) Any
Borrower shall fail to perform, comply with or observe any term, covenant or
agreement applicable to it contained in Sections 5.1(a), 5.1(b),  5.2(d), 5.2(f), 5.2(g), 5.2(i), 5.4, 5.7 or 5.9 or Article VI
hereof; (ii) any Borrower shall fail to comply with any covenant or
agreement found in Sections 5.2(a), 5.2(b), 5.2(c) or 5.2(h) and in
the event such breach or failure to comply is reasonably capable of cure, is
not cured within the time prescribed therein, or to the extent not prescribed
therein, within five (5) days of its occurrence; or (iii) any
Borrower shall fail to comply with any other covenant contained in this
Agreement or the other Credit Documents or any other agreement, document or
instrument among any Borrower, the Administrative Agent and the Lenders or
executed by any Borrower in favor of the Administrative Agent or the Lenders
(other than as described in Sections 7.1(a), 7.1(b) and 7.1(c)(i) and
(ii) above), and in the event such breach or failure to comply is
reasonably capable of cure, is not cured within the time prescribed therein, or
to the extent not prescribed therein, within thirty (30) days of its
occurrence.

 

                (d)           Indebtedness Cross-Default.
Any Borrower or any of its Subsidiaries shall (i) default in any payment
of principal of or interest on any Indebtedness (other than the Indebtedness
hereunder) in a principal amount outstanding of at least $7,500,000 in the
aggregate for the Borrowers and their Subsidiaries beyond the period of grace,
if any, provided in the instrument or agreement under which such Indebtedness
was created; or (ii) default in the observance or performance of any other
agreement or condition relating to any Indebtedness (other than the
Indebtedness hereunder) in a principal amount outstanding of at least  $7,500,000 in the aggregate for the Borrowers and their
Subsidiaries or contained in any instrument or agreement evidencing, securing
or relating thereto, or any other event shall occur or condition exist, the
effect of which default or other event or condition is to cause, or to permit
the holder or holders of such Indebtedness or beneficiary or beneficiaries of
such Indebtedness (or a trustee or agent on behalf of such holder or holders or
beneficiary or beneficiaries) to cause, with the giving of notice if required,
such Indebtedness to become due prior to its stated maturity; or (iii) any
Borrower shall breach or default any Secured Hedging Agreement and shall have
failed to cure such breach or default within any applicable grace or cure
period set forth therein.

 

                (e)           Bankruptcy Default. (i) Any
Borrower or any of its Subsidiaries shall commence any case, proceeding or
other action (A) under any existing or future law of any jurisdiction,
domestic or foreign, relating to bankruptcy, insolvency, reorganization or
relief of debtors, seeking to have an order for relief entered with respect to
it, or seeking to have it judged bankrupt or Insolvent, or seeking
reorganization, arrangement, adjustment, winding-up, liquidation, dissolution,
composition or other relief with respect to it or its debts, or (B) seeking
appointment of a receiver, trustee, custodian, conservator or other similar
official for it or for all 

 

 

95

 

or any substantial
part of its assets, or any Borrower or any of its Subsidiaries shall make a
general assignment for the benefit of its creditors; or (ii) there shall
be commenced against any Borrower or any of its Subsidiaries any case,
proceeding or other action of a nature referred to in clause (i) above
which (A) results in the entry of an order for relief or any such
adjudication or appointment or (B) remains undismissed, undischarged or unbonded
for a period of 60 days (provided that no
Lender shall be required to make an Extension of Credit during such 60 day
period except for the obligation of each Lender to fund its portion of a
Mandatory LOC Borrowing or a Mandatory Swingline Borrowing, which shall be
governed by the terms of Section 2.2 and Section 2.3, respectively); or  (iii) there
shall be commenced against any Borrower or any of its Subsidiaries any case,
proceeding or other action seeking issuance of a warrant of attachment, execution,
distraint or similar process against all or any substantial part of their
assets that results in the entry of an order for any such relief that shall not
have been vacated, discharged, or stayed or bonded pending appeal within 60 days from the entry thereof (provided that no Lender shall be required to
make an Extension of Credit during such 60 day period except for the
obligation of each Lender to fund its portion of a Mandatory LOC Borrowing or a
Mandatory Swingline Borrowing, which shall be governed by the terms of Section 2.2
and Section 2.3, respectively);
or (iv) any Borrower or any of its
Subsidiaries shall take any action in furtherance of, or indicating its
consent to, approval of, or acquiescence in, any of the acts set forth in
clause (i), (ii), or (iii) above; or  (v) any
Borrower or any of its Subsidiaries shall generally not, or shall be unable to,
or shall admit in writing its inability to, pay its debts as they become due.

 

                (f)            Judgment Default.  One or more judgments, orders, decrees or
arbitration awards shall be entered against any Borrower or any of its
Subsidiaries involving in the aggregate a liability (to the extent not covered
by third-party insurance) of $7,500,000  or more and
all such judgments, orders, decrees or arbitration awards shall not have been
paid and satisfied, vacated, discharged, stayed or bonded pending appeal within
30 Business Days from the entry
thereof or any injunction, temporary restraining order or similar decree shall
be issued against any Borrower or any of its Subsidiaries that could reasonably
be expected to result in a Material Adverse Effect.

 

                (g)           ERISA Default. (i) Any
Person shall engage in any “prohibited transaction” (as defined in Section 406
of ERISA or Section 4975 of the Code) involving any Plan, (ii) any “accumulated
funding deficiency” (as defined in Section 302 of ERISA), whether or not
waived, shall exist with respect to any Plan or any Lien in favor of the PBGC
or a Plan (other than a Permitted Lien) shall arise on the assets of any
Borrower, any of its Subsidiaries or any Commonly Controlled Entity,  (iii) a Reportable Event shall occur with respect to,
or proceedings shall commence to have a trustee appointed, or a trustee shall
be appointed, to administer or to terminate, any Single Employer Plan, which
Reportable Event or commencement of proceedings or appointment of a trustee is,
in the reasonable opinion of the Required Lenders, likely to result in the
termination of such Plan for purposes of Title IV of ERISA, (iv) any Single Employer Plan shall
terminate for purposes of Title IV of ERISA,  (v) any
Borrower, any of its Subsidiaries or any Commonly Controlled Entity shall, or
in the reasonable opinion of the Required Lenders is likely to, incur any
liability in connection with a withdrawal from, or the Insolvency or
Reorganization of, any Multiemployer Plan or  (vi) any
other similar event or condition shall occur or exist with respect to a Plan;
and in each case in clauses (i) through (vi) above, such 

 

 

96

 

event or
condition, together with all other such events or conditions, if any, could
have a Material Adverse Effect in the reasonable determination of the Lenders.

 

                (h)           Change of Control. There shall
occur a Change of Control.

 

                (i)            Invalidity of Credit Documents.
Any other Credit Document shall fail or cease to be in full force and effect or
to give the Administrative Agent and/or the Lenders the security interests,
liens, rights, powers and privileges purported to be created thereby (except as
such documents may be terminated or no longer in force and effect in accordance
with the terms thereof, other than those indemnities and provisions that by
their terms shall survive); or any Lien shall fail to be a first priority
perfected Lien (subject to Permitted Liens) on a material portion of the
Collateral; or any Borrower or any Person acting by, on behalf of, or in
collusion with any Borrower shall deny or disaffirm any Borrower’s obligations
under this Agreement or any other Credit Document or assert the invalidity or
lack of perfection or priority of any Lien or security interest granted to the
Administrative Agent pursuant to the Security Documents.

 

                (j)            Uninsured Loss. Any uninsured
damage to or loss, theft or destruction of any assets of any Borrower or any of
its Subsidiaries shall occur that is in excess of $7,500,000.

 

                (k)           Material Contract. A default
under any Material Government Contract or other Material Contract shall exist
beyond (i) the expiration of any cure period available to any Borrower or
Subsidiary party thereto pursuant to the terms of such Material Government
Contract or other Material Contract or (ii) the date on which the other
contracting party is entitled to exercise its rights and remedies under such
Material Government Contract or other Material Contract as a consequence of
such default, and the effect of any such default would reasonably be expected
to have a Material Adverse Effect.

 

                (l)            Debarment or Suspension. (i) Any Borrower or any Subsidiary thereof
is debarred or suspended from contracting with any Governmental Authority; or (ii) a
notice of debarment or suspension from contracting with any Governmental
Authority has been issued to or received by any Borrower or any Subsidiary
thereof; or (iii) an investigation by any Governmental Authority relating
to any Borrower or any Subsidiary thereof and involving fraud, deception or
willful misconduct shall have been commenced in connection with any Government
Contract or other Material Contract or any Borrower’s or any Subsidiary’s
activities that could reasonably be expected to have a Material Adverse Effect;
or (iv) the actual termination of a Government Contract or other Material
Contract due to alleged fraud, deception or willful misconduct that could
reasonably be expected to have a Material Adverse Effect.

 

(m)          Subordinated
Debt.  Any default (which is not
waived or cured within the applicable period of grace) or event of default
shall occur under any Subordinated Debt or the subordination provisions
contained therein shall cease to be in full force and effect or shall cease to
give the Lenders the rights, powers and privileges purported to be created
thereby.

 

 

97

 

                Section 7.2             Acceleration; Remedies.

 

                Upon the occurrence and during
the continuation of an Event of Default, then
(a) if such event is an Event of Default specified in Section 7.1(e) above,
automatically the Commitments shall immediately terminate and the Loans (with
accrued interest thereon), and all other Borrowers’ Obligations under the
Credit Documents (including without limitation the maximum amount of all
contingent liabilities under Letters of Credit) shall immediately become due
and payable, and the Borrowers shall immediately pay to the Administrative
Agent for the ratable account of the Revolving Lenders cash collateral as
security for the LOC Obligations for subsequent drawings under then outstanding
Letters of Credit in an amount equal to the maximum amount that may be drawn
under Letters of Credit then outstanding and
(b) if such event is any other Event of Default, any of the
following actions may be taken:  with the
written consent of the Required Lenders, the Administrative Agent may, or upon
the written request of the Required Lenders, the Administrative Agent shall, (i) by
notice to the Parent Borrower declare all or any portion of the Commitments to
be terminated forthwith, whereupon such Commitments shall immediately
terminate, (ii) by notice of default to the Parent Borrower, declare the Loans
(with accrued interest thereon) and all other Borrowers’ Obligations under the
Credit Documents (including without limitation the maximum amount of all
contingent liabilities under Letters of Credit) to be due and payable forthwith
and direct the Borrowers to pay to the Administrative Agent for the ratable
account of the Revolving Lenders cash collateral as security for the LOC
Obligations for subsequent drawings under then outstanding Letters of Credit an
amount equal to the maximum amount of which may be drawn under Letters of
Credit then outstanding, whereupon the same shall immediately become due and
payable, (iii) hire, at the expense of the Borrowers, one or more
consultants and the Borrowers agree to cooperate with such consultants, (iv) exercise
any rights or remedies of the Administrative Agent or the Lenders under this
Agreement or any other Credit Document, including, without limitation, any
rights or remedies with respect to the Collateral, and (v) exercise any
rights or remedies available to the Administrative Agent or Lenders under
applicable law.

 

 

ARTICLE VIII

 

THE AGENT

 

                Section 8.1             Appointment and Authority.

 

Each of the
Lenders and the Issuing Lender hereby irrevocably appoints Wachovia to act on
its behalf as the Administrative Agent hereunder and under the other Credit
Documents and authorizes the Administrative Agent to take such actions on its
behalf and to exercise such powers as are delegated to the Administrative Agent
by the terms hereof or thereof, together with such actions and powers as are
reasonably incidental thereto.  The
provisions of this Article are solely for the benefit of the
Administrative Agent, the Lenders and the Issuing Lender, and no Borrower shall
have rights as a third party beneficiary of any of such provisions.

 

 

 

98

 

Section 8.2             Nature of Duties.

 

Anything herein to the
contrary notwithstanding, none of the Bookrunners, Arrangers or other agents
listed on the cover page hereof shall have any powers, duties or responsibilities
under this Agreement or any of the other Credit Documents, except in its
capacity, as applicable, as the Administrative Agent, a Lender or the Issuing
Lender hereunder.  Without limiting the
foregoing, none of the Lenders or other Persons so identified shall have or be
deemed to have any fiduciary relationship with any Lender.  Each Lender acknowledges that it has not
relied, and will not rely, on any of the Lenders or other Persons so identified
in deciding to enter into this Agreement or in taking or not taking action
hereunder.

 

The Administrative Agent
may perform any and all of its duties and exercise its rights and powers
hereunder or under any other Credit Document by or through any one or more
sub-agents appointed by the Administrative Agent.  The Administrative Agent and any such
sub-agent may perform any and all of its duties and exercise its rights and
powers by or through their respective Related Parties.  The exculpatory provisions of this Article shall
apply to any such sub-agent and to the Related Parties of the Administrative
Agent and any such sub-agent, and shall apply to their respective activities in
connection with the syndication of the credit facilities provided for herein as
well as activities as Administrative Agent.

 

Section 8.3             Exculpatory Provisions.

 

The Administrative Agent
shall not have any duties or obligations except those expressly set forth
herein and in the other Credit Documents. 
Without limiting the generality of the foregoing, the Administrative
Agent:

 

(a)           shall not be
subject to any fiduciary or other implied duties, regardless of whether a
Default has occurred and is continuing;

 

(b)           shall not have
any duty to take any discretionary action or exercise any discretionary powers,
except discretionary rights and powers expressly contemplated hereby or by the
other Credit Documents that the Administrative Agent is required to exercise as
directed in writing by the Required Lenders (or such other number or percentage
of the Lenders as shall be expressly provided for herein or in the other Credit
Documents), provided that the Administrative Agent shall not be required
to take any action that, in its opinion or the opinion of its counsel, may
expose the Administrative Agent to liability or that is contrary to any Credit
Document or applicable law; and

 

(c)           shall not, except
as expressly set forth herein and in the other Credit Documents, have any duty
to disclose, and shall not be liable for the failure to disclose, any
information relating to any Borrower or any of its Affiliates that is
communicated to or obtained by the Person serving as the Administrative Agent
or any of its Affiliates in any capacity.

 

The Administrative Agent
shall not be liable for any action taken or not taken by it (i) with the
consent or at the request of the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary, or as the Administrative Agent
shall believe in 

 

 

99

 

good faith shall be
necessary, under the circumstances as provided in Sections 9.1 and 7.2) or
(ii) in the absence of its own gross negligence or willful misconduct.

 

The Administrative Agent
shall not be responsible for or have any duty to ascertain or inquire into (i) any
statement, warranty or representation made in or in connection with this
Agreement or any other Credit Document, (ii) the contents of any
certificate, report or other document delivered hereunder or thereunder or in
connection herewith or therewith, (iii) the performance or observance of
any of the covenants, agreements or other terms or conditions set forth herein
or therein or the occurrence of any Default, (iv) the validity,
enforceability, effectiveness or genuineness of this Agreement, any other
Credit Document or any other agreement, instrument or document or (v) the
satisfaction of any condition set forth in Article IV or elsewhere herein,
other than to confirm receipt of items expressly required to be delivered to
the Administrative Agent.

 

Section 8.4             Reliance by Administrative Agent.

 

The Administrative Agent
shall be entitled to rely upon, and shall not incur any liability for relying
upon, any notice, request, certificate, consent, statement, instrument,
document or other writing (including any electronic message, Internet or
intranet website posting or other distribution) believed by it to be genuine
and to have been signed, sent or otherwise authenticated by the proper
Person.  The Administrative Agent also
may rely upon any statement made to it orally or by telephone and believed by
it to have been made by the proper Person, and shall not incur any liability
for relying thereon.  In determining
compliance with any condition hereunder to the making of a Loan, or the
issuance of a Letter of Credit, that by its terms must be fulfilled to the
satisfaction of a Lender or the Issuing Lender, the Administrative Agent may
presume that such condition is satisfactory to such Lender or the Issuing
Lender unless the Administrative Agent shall have received notice to the contrary
from such Lender or the Issuing Lender prior to the making of such Loan or the
issuance of such Letter of Credit.  The
Administrative Agent may consult with legal counsel (who may be counsel for the
Borrowers), independent accountants and other experts selected by it, and shall
not be liable for any action taken or not taken by it in accordance with the
advice of any such counsel, accountants or experts.

 

Section 8.5             Notice of Default.

 

The Administrative
Agent shall not be deemed to have knowledge or notice of the occurrence of any
Default or Event of Default hereunder unless the Administrative Agent has
received written notice from a Lender or a Borrower referring to this
Agreement, describing such Default or Event of Default and stating that such
notice is a “notice of default”.  In the
event that the Administrative Agent receives such a notice, the Administrative
Agent shall give prompt notice thereof to the Lenders.  The Administrative Agent shall take such
action with respect to such Default or Event of Default as shall be reasonably
directed by the Required Lenders; provided, however, that unless
and until the Administrative Agent shall have received such directions, the
Administrative Agent may (but shall not be obligated to) take such action, or
refrain from taking such action, with respect to such Default or Event of
Default as it shall deem advisable in the best interests of the Lenders except
to the extent that this Agreement expressly 

 

 

100

 

requires that such
action be taken, or not taken, only with the consent or upon the authorization
of the Required Lenders, or all of the Lenders, as the case may be.

 

Section 8.6             Non-Reliance on Administrative
Agent and Other Lenders.

 

Each Lender and
the Issuing Lender expressly acknowledges that neither the Administrative Agent
nor any of its officers, directors, employees, agents, attorneys-in-fact or
affiliates has made any representation or warranty to it and that no act by the
Administrative Agent hereinafter taken, including any review of the affairs of
any Borrower, shall be deemed to constitute any representation or warranty by
the Administrative Agent to any Lender. 
Each Lender and the Issuing Lender acknowledges that it has,
independently and without reliance upon the Administrative Agent or any other
Lender or any of their Related Parties and based on such documents and
information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. 
Each Lender and the Issuing Lender also acknowledges that it will,
independently and without reliance upon the Administrative Agent or any other
Lender or any of their Related Parties and based on such documents and
information as it shall from time to time deem appropriate, continue to make
its own decisions in taking or not taking action under or based upon this
Agreement, any other Credit Document or any related agreement or any document
furnished hereunder or thereunder.

 

Section 8.7             Indemnification.

 

The Lenders agree
to indemnify the Administrative Agent, the Issuing Lender, and the Swingline
Lender, each in its capacity hereunder, and their Affiliates and their
respective officers, directors, agents and employees (to the extent not
reimbursed by the Borrowers and without limiting the obligation of the
Borrowers to do so), ratably according to their respective Commitment
Percentages in effect on the date on which indemnification is sought under this
Section, from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind whatsoever which may at any time (including, without limitation, at any
time following the payment of the Borrowers’ Obligations) be imposed on,
incurred by or asserted against any such indemnitee in any way relating to or
arising out of any Credit Document or any documents contemplated by or referred
to herein or therein or the transactions contemplated hereby or thereby or any
action taken or omitted by any such indemnitee under or in connection with any
of the foregoing; provided, however, that no Lender shall be
liable for the payment of any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
to the extent resulting from such indemnitee’s gross negligence or willful
misconduct, as determined by a court of competent jurisdiction.  The agreements in this Section shall
survive the termination of this Agreement and payment of the Notes, any reimbursement
obligation and all other amounts payable hereunder.

 

Section 8.8             Administrative Agent in Its
Individual Capacity.

 

The Person serving as the
Administrative Agent hereunder shall have the same rights and powers in its
capacity as a Lender as any other Lender and may exercise the same as though it
were not the Administrative Agent and the term “Lender” or “Lenders” shall,
unless otherwise 

 

 

101

 

expressly indicated or
unless the context otherwise requires, include the Person serving as the
Administrative Agent hereunder in its individual capacity.  Such Person and its Affiliates may accept
deposits from, lend money to, act as the financial advisor or in any other
advisory capacity for and generally engage in any kind of business with the
Borrowers or any Subsidiary or other Affiliate thereof as if such Person were
not the Administrative Agent hereunder and without any duty to account therefor
to the Lenders.

 

Section 8.9             Successor Administrative Agent.

 

The Administrative Agent
may at any time give notice of its resignation to the Lenders, the Issuing
Lender and the Parent Borrower.  Upon
receipt of any such notice of resignation, the Required Lenders shall have the
right, subject to, so long as no Event of Default has occurred and is
continuing, prior written approval of the Parent Borrower (such approval not to
be unreasonably withheld), appoint a successor, or an Affiliate of any such
bank.  If no such successor shall have
been so appointed by the Required Lenders and shall have accepted such
appointment within thirty (30) days after the retiring Administrative
Agent gives notice of its resignation, then the retiring Administrative Agent
may on behalf of the Lenders and the Issuing Lender, subject to, so long as no
Event of Default has occurred and is continuing, prior written approval of the
Parent Borrower (such approval not to be unreasonably withheld), to appoint a
successor Administrative Agent meeting the qualifications set forth above
provided that if the Administrative Agent shall notify the Parent Borrower and
the Lenders that no qualifying Person has accepted such appointment, then such
resignation shall nonetheless become effective in accordance with such notice
and (a) the retiring Administrative Agent shall be discharged from its
duties and obligations hereunder and under the other Credit Documents (except
that in the case of any Collateral held by the Administrative Agent on behalf
of the Lenders or the Issuing Lender under any of the Credit Documents, the
retiring Administrative Agent shall continue to hold such Collateral until such
time as a successor Administrative Agent is appointed) and (b) all
payments, communications and determinations provided to be made by, to or
through the Administrative Agent shall instead be made by or to each Lender and
the Issuing Lender directly, until such time as the Required Lenders appoint a
successor Administrative Agent as provided for above in this paragraph.  Upon the acceptance of a successor’s appointment
as Administrative Agent hereunder, such successor shall succeed to and become
vested with all of the rights, powers, privileges and duties of the retiring
(or retired) Administrative Agent, and the retiring Administrative Agent shall
be discharged from all of its duties and obligations hereunder or under the
other Credit Documents (if not already discharged therefrom as provided above
in this paragraph).  The fees payable by
the Borrowers to a successor Administrative Agent shall be the same as those payable
to its predecessor unless otherwise agreed between the Borrower and such
successor.  After the retiring
Administrative Agent’s resignation hereunder and under the other Credit
Documents, the provisions of this Article and Section 9.5  shall continue in effect for the benefit of such retiring
Administrative Agent, its sub-agents and their respective Related Parties in
respect of any actions taken or omitted to be taken by any of them while the
retiring Administrative Agent was acting as Administrative Agent.

 

 

102

 

Section 8.10           Collateral and Guaranty Matters.

 

(a)           The
Lenders irrevocably authorize and direct the Administrative Agent:

 

(i)            to
release any Lien on any Collateral granted to or held by the Administrative
Agent under any Credit Document (i) upon termination of the Revolving
Commitments and payment in full of all Borrowers’ Obligations (other than
contingent indemnification obligations) and the expiration or termination of
all Letters of Credit, (ii) that is transferred or to be transferred as
part of or in connection with any sale or other disposition permitted under Section 6.4,
or (iii) subject to Section 9.1, if approved, authorized or ratified
in writing by the Required Lenders; and

 

(ii)           to
subordinate any Lien on any Collateral granted to or held by the Administrative
Agent under any Credit Document to the holder of any Lien on such Collateral
that is permitted by Section 6.2.

 

(b)           In connection
with a termination or release pursuant to this Section, the Administrative
Agent shall promptly execute and deliver to the applicable Borrower, at the
Borrowers’ expense, all documents that the applicable Borrower shall reasonably
request to evidence such termination or release.  Upon request by the Administrative Agent at
any time, the Required Lenders will confirm in writing the Administrative Agent’s
authority to release or subordinate its interest in particular types or items
of Collateral.

 

 

ARTICLE IX

 

MISCELLANEOUS

 

                Section 9.1             Amendments, Waivers and Release
of Collateral.

 

Neither this
Agreement nor any of the other Credit Documents, nor any terms hereof or
thereof may be amended, modified, extended, restated, replaced, or supplemented
(by amendment, waiver, consent or otherwise) except in accordance with the
provisions of this Section nor may Collateral be released except as
specifically provided herein or in the Security Documents or in accordance with
the provisions of this Section.  The
Required Lenders may or, with the written consent of the Required Lenders, the
Administrative Agent may, from time to time, (a) enter into with the
Borrowers written amendments, supplements or modifications hereto and to the
other Credit Documents for the purpose of adding any provisions to this
Agreement or the other Credit Documents or changing in any manner the rights of
the Lenders or of the Borrowers hereunder or thereunder or (b) waive or consent to the
departure from, on such terms and conditions as the Required Lenders may
specify in such instrument, any of the requirements of this Agreement or the
other Credit Documents or any Default or Event of Default and its consequences;
provided, however, that no such amendment, supplement,
modification, release, waiver or consent shall:

 

 

 

103

 

 

(i)            reduce
the amount or extend the scheduled date of maturity of any Loan or Note or any
installment thereon, or reduce the stated rate of any interest or fee payable
hereunder (except in connection with a waiver of interest at the increased
post-default rate set forth in Section 2.9 which shall be determined by a
vote of the Required Lenders) or extend the scheduled date of any payment
thereof or increase the amount or extend the expiration date of any Lender’s
Commitment, in each case without the written consent of each Lender directly
affected thereby; provided that, it is understood and agreed that (A) no
waiver, reduction or deferral of a mandatory prepayment required pursuant to Section 2.8(b),
nor any amendment of Section 2.8(b) or the definitions of Asset
Disposition, Debt Issuance, Equity Issuance or Recovery Event,  shall constitute a reduction of the amount of, or an
extension of the scheduled date of, the scheduled date of maturity of, or any
installment of, any Loan or Note, (B) any reduction in the stated rate of
interest on Revolving Loans shall only require the written consent of each
Lender holding a Revolving Commitment and (C) any reduction in the stated
rate of interest on the Term Loan shall only require the written consent of
each Lender holding a portion of the outstanding Term Loan; or

 

(ii)           amend,
modify or waive any provision of this Section or reduce the percentage
specified in the definition of Required Lenders, without the written consent of
all the Lenders; or

 

(iii)          release
any Borrower, without the written consent of all of the Lenders and any Bank
Product Provider; or

 

(iv)          release
all or substantially all of the Collateral without the written consent of all
of the Lenders and any Bank Product Provider; or

 

(v)           subordinate
the Loans to any other Indebtedness without the written consent of all of the
Lenders; or

 

(vi)          permit
a Letter of Credit to have an original expiry date more than twelve (12)
months from the date of issuance without the consent of each of the Revolving
Lenders; provided, that the expiry date of any Letter of Credit may be
extended in accordance with the terms of Section 2.3(a); or

 

(vii)         permit
any Borrower to assign or transfer any of its rights or obligations under this
Agreement or other Credit Documents without the written consent of all of the
Lenders; or

 

(viii)        amend,
modify or waive any provision of the Credit Documents requiring consent,
approval or request of the Required Lenders or all Lenders without the written
consent of the Required Lenders or all the Lenders as appropriate; or

 

(ix)           without the consent of Revolving Lenders holding
in the aggregate more than 50% of the outstanding Revolving Commitments (or if
the Revolving  Commitments have been
terminated, the aggregate principal amount of outstanding Revolving Loans), 

 

 

104

 

amend,
modify or waive any provision in Section 4.2 or waive any Default or Event
of Default (or amend any Credit Document to effectively waive any Default or
Event of Default) if the effect of such amendment, modification or waiver is
that the Revolving Lenders shall be required to fund Revolving Loans when such
Lenders would otherwise not be required to do so; or

 

(x)            amend,
modify or waive the order in which Borrowers’ Obligations are paid or in a
manner that would alter the pro rata sharing of payments by and among the
Lenders in Section 2.12(b) without the written consent of each Lender
and each Bank Product Provider directly affected thereby; or

 

(xi)           amend,
modify or waive any provision of Article VIII without the written consent
of the then Administrative Agent; or

 

(xii)          amend
or modify the definition of Borrowers’ Obligations to delete or exclude any
obligation or liability described therein without the written consent of each
Lender and each Bank Product Provider directly affected thereby; or

 

(xiii)         amend
the definitions of “Hedging Agreement,” or “Secured Hedging Agreement,” without
the consent of any Bank Product Provider that would be adversely affected
thereby;

 

provided, further, that no amendment,
waiver or consent affecting the rights or duties of the Administrative Agent,
the Issuing Lender or the Swingline Lender under any Credit Document shall in
any event be effective, unless in writing and signed by the Administrative
Agent, the Issuing Lender and/or the Swingline Lender, as applicable, in
addition to the Lenders required hereinabove to take such action.

 

Any such waiver,
any such amendment, supplement or modification and any such release shall apply
equally to each of the Lenders and shall be binding upon the Borrowers, the
Lenders, the Administrative Agent and all future holders of the Notes.  In the case of any waiver, the Borrowers, the
Lenders and the Administrative Agent shall be restored to their former position
and rights hereunder and under the outstanding Loans and Notes and other Credit
Documents, and any Default or Event of Default waived shall be deemed to be
cured and not continuing; but no such waiver shall extend to any subsequent or
other Default or Event of Default, or impair any right consequent thereon.

 

Notwithstanding
any of the foregoing to the contrary, the consent of the Borrowers shall not be
required for any amendment, modification or waiver of the provisions of Article VIII
(other than the provisions of Section 8.9); provided, however,
the Administrative Agent shall provide written notice (which shall include
electronic email) to the Parent Borrower of any such amendment, modification or
waiver.

 

Notwithstanding the fact that the consent of all the Lenders is
required in certain circumstances as set forth above, (a) each Lender is
entitled to vote as such Lender sees fit on any bankruptcy reorganization plan
that affects the Loans, and each Lender acknowledges that the 

 

105

 

provisions of Section 1126(c) of the Bankruptcy Code
supersedes the unanimous consent provisions set forth herein and (b) the
Required Lenders may consent to allow a Borrower to use cash collateral in the
context of a bankruptcy or insolvency proceeding.

 

                Section 9.2             Notices.

 

(a)           Notices
Generally.  Except in the case of
notices and other communications expressly permitted to be given by telephone
(and except as provided in paragraph (b) below), all notices and other
communications provided for herein shall be in writing and shall be delivered
by hand or overnight courier service, mailed by certified or registered mail or
sent by telecopier as follows:

 

	
  The Parent Borrower

  	
   

  	
  SI
  International, Inc.

  	
   

  	
   

  	 

	
  and the Subsidiary

  	
   

  	
  12012 Sunset Hills Road
  (8th Floor)

  	
   

  	
   

  	 

	
  Borrowers:

  	
   

  	
  Reston, Virginia 20190

  	
   

  	
   

  	 

	
   

  	
   

  	
  Attention:

  	
  Mr. Thomas E.
  Dunn, Executive Vice President and Chief Financial Officer

  	
   

  	 

	
   

  	
   

  	
  Telecopier:

  	
  (703) 234-7500

  	
   

  	 

	
   

  	
   

  	
  Telephone:

  	
  (703) 234-7003

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  with a copy to:

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  Morrison &
  Foerster

  	
   

  	
   

  	 

	
   

  	
   

  	
  1650 Tysons
  Boulevard

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  Suite 400

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  McLean, Virginia
  22102-4859

  	
   

  	
   

  	 

	
   

  	
   

  	
  Attention:

  	
  Mr. Charles
  W. Katz, Esq.

  	
   

  	 

	
   

  	
   

  	
  Telecopier:

  	
  (703) 760-7319

  	
   

  	 

	
   

  	
   

  	
  Telephone

  	
  (703) 760-7777

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The Administrative

  Agent:

  	
   

  	
  Wachovia Bank,
  National Association, as Administrative Agent

  1525 West W.T.
  Harris Boulevard

  NC0680

  Charlotte,
  NC  28262

  	
   

  	
   

  
	
   

  	
   

  	
  Attn:  

  	
  Syndication Agency Services

  	
   

  	
   

  
	
   

  	
   

  	
  Phone: 
  

  	
  (704)
  590-2703

  	
   

  	
   

  
	
   

  	
   

  	
  Phone: 
  

  	
  (704)
  590-2703

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

 

106

 

	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  Wachovia Bank, National Association

  
	
   

  	
  One 301 South College Street, NC5562

  
	
   

  	
  Charlotte, North Carolina 28288

  
	
   

  	
  Attention:

  	
  Rob Sevin

  
	
   

  	
  Telecopier:

  	
  (704) 383-1625

  
	
   

  	
  Telephone:

  	
  (704) 383-7546

  
	
   

  	
   

  
	
  Lenders:

  	
  To it at its address
  (or telecopier number) set forth in its Administrative Questionnaire.

  

 

Notices sent by hand or
overnight courier service, or mailed by certified or registered mail, shall be
deemed to have been given when received; notices sent by telecopier shall be
deemed to have been given when sent (except that, if not given during normal
business hours for the recipient, shall be deemed to have been given at the
opening of business on the next Business Day for the recipient).  Notices delivered through electronic
communications to the extent provided in paragraph (b) below, shall
be effective as provided in said paragraph (b).

 

(b)           Electronic
Communications.  Notices and other
communications to the Lenders and the Issuing Lender hereunder may be delivered
or furnished by electronic communication (including e-mail and Internet or
intranet websites) pursuant to procedures approved by the Administrative Agent,
provided that the foregoing shall not apply to notices to any Lender or
the Issuing Lender pursuant to Article II if such Lender or the Issuing
Lender, as applicable, has notified the Administrative Agent that it is
incapable of receiving notices under such Article by electronic
communication.  The Administrative Agent
or the Borrowers may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to
procedures approved by it, provided that approval of such procedures may
be limited to particular notices or communications.

 

Unless the Administrative
Agent otherwise prescribes, (i) notices and other communications sent to
an e-mail address shall be deemed received upon the sender’s receipt of an
acknowledgement from the intended recipient (such as by the “return receipt requested”
function, as available, return e-mail or other written acknowledgement), provided
that if such notice or other communication is not sent during the normal
business hours of the recipient, such notice or communication shall be deemed
to have been sent at the opening of business on the next business day for the
recipient, and (ii) notices or communications posted to an Internet or
intranet website shall be deemed received upon the deemed receipt by the
intended recipient at its e-mail address as described in the foregoing
clause (i) of notification that such notice or communication is
available and identifying the website address therefor.

 

(c)           Change of
Address, Etc.  Any party hereto may
change its address or telecopier number for notices and other communications
hereunder by notice to the other parties hereto.

 

 

107

 

                Section 9.3             No Waiver; Cumulative Remedies.

 

                No failure to exercise and no
delay in exercising, on the part of the Administrative Agent or any Lender, any
right, remedy, power or privilege hereunder shall operate as a waiver thereof;
nor shall any single or partial exercise of any right, remedy, power or
privilege hereunder preclude any other or further exercise thereof or the
exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges
herein provided are cumulative and not exclusive of any rights, remedies,
powers and privileges provided by law.

 

                Section 9.4             Survival of Representations and
Warranties.

 

                All representations and
warranties made hereunder and in any document, certificate or statement
delivered pursuant hereto or in connection herewith shall survive the execution
and delivery of this Agreement and the Notes and the making of the Loans; provided
that all such representations and warranties shall terminate on the date upon
which the Commitments have been terminated and all amounts owing hereunder and
under any Notes have been paid in full.

 

                Section 9.5             Payment of Expenses and Taxes.

 

(a)           Costs and
Expenses.  The Borrowers, jointly and
severally agree to pay (i) all reasonable out-of-pocket expenses incurred
by the Administrative Agent and its Affiliates (including the reasonable fees,
charges and disbursements of counsel for the Administrative Agent) in
connection with the preparation, negotiation, execution, delivery and
administration of this Agreement and the other Credit Documents or any
amendments, modifications or waivers of the provisions hereof or thereof
(whether or not the transactions contemplated hereby or thereby shall be
consummated), (ii) all reasonable out-of-pocket expenses incurred by the
Issuing Lender and the Swingline Lender in connection with the issuance,
amendment, renewal or extension of any Letter of Credit or Swingline Loan or
any demand for payment thereunder and (iii) all out-of-pocket expenses
incurred by the Administrative Agent, any Lender, the Issuing Lender or the
Swingline Lender (including the fees, charges and disbursements of any counsel
for the Administrative Agent, any Lender or the Issuing Lender) in connection
with the enforcement or protection of its rights (A) in connection with
this Agreement and the other Credit Documents, including its rights under this
Section, or (B) in connection with the Loans made or Letters of Credit
issued hereunder, including all such out-of-pocket expenses incurred during any
workout, restructuring or negotiations in respect of such Loans or Letters of
Credit.

 

(b)           Indemnification
by the Borrowers.  The Borrowers,
jointly and severally agree to indemnify the Administrative Agent (and any
sub-agent thereof), each Lender, the Issuing Lender and the Swingline Lender,
and each Related Party of any of the foregoing Persons (each such Person being
called an “Indemnitee”) against, and hold each Indemnitee harmless from,
any and all losses, claims, penalties, damages, liabilities and related
expenses (including the fees, charges and disbursements of any counsel for any
Indemnitee), and shall indemnify and hold harmless each Indemnitee from all
fees and time charges and disbursements incurred by any Indemnitee or asserted
against any Indemnitee by any third party or by the Borrowers arising out of,
in connection with, or as a result of (i) the execution or delivery of
this Agreement, any other Credit Document or any agreement or instrument
contemplated hereby or thereby, the 

 

 

108

 

performance by the
parties hereto of their respective obligations hereunder or thereunder or the
consummation of the transactions contemplated hereby or thereby, (ii) any
Loan or Letter of Credit or the use or proposed use of the proceeds therefrom
(including any refusal by the Issuing Lender to honor a demand for payment
under a Letter of Credit if the documents presented in connection with such
demand do not strictly comply with the terms of such Letter of Credit), (iii) any
actual or alleged presence or release of Materials of Environmental Concern on
or from any property owned or operated by any Borrower or any of its
Subsidiaries, or any liability under Environmental Law related in any way to
any Borrower or any of its Subsidiaries, or (iv) any actual or prospective
claim, litigation, investigation or proceeding relating to any of the
foregoing, whether based on contract, tort or any other theory, whether brought
by a third party or by any Borrower, and regardless of whether any Indemnitee
is a party thereto, provided that such indemnity shall not, as to any
Indemnitee, be available to the extent that such losses, claims, damages,
liabilities or related expenses are determined by a court of competent
jurisdiction by final and nonappealable judgment to have resulted from the
gross negligence or willful misconduct of such Indemnitee.

 

(c)           Reimbursement
by Lenders.  To the extent that the
Borrowers for any reason fail to indefeasibly pay any amount required under
paragraph (a) or (b) of this Section to be paid by it
to the Administrative Agent (or any sub-agent thereof), the Issuing Lender,
Swingline Lender or any Related Party of any of the foregoing, each Lender
severally agrees to pay to the Administrative Agent (or any such sub-agent),
the Issuing Lender, Swingline Lender or such Related Party, as the case may be,
such Lender’s Commitment Percentage (determined as of the time that the
applicable unreimbursed expense or indemnity payment is sought) of such unpaid
amount, provided that the unreimbursed expense or indemnified loss,
claim, damage, liability or related expense, as the case may be, was incurred
by or asserted against the Administrative Agent (or any such sub-agent), the
Issuing Lender or Swingline Lender in its capacity as such, or against any
Related Party of any of the foregoing acting for the Administrative Agent (or
any such sub-agent), Issuing Lender or Swingline Lender in connection with such
capacity.

 

(d)           Waiver of
Consequential Damages, Etc.  To the
fullest extent permitted by applicable law, the Borrowers shall not assert, and
hereby waive, any claim against any Indemnitee, on any theory of liability, for
special, indirect, consequential or punitive damages (as opposed to direct or
actual damages) arising out of, in connection with, or as a result of, this
Agreement, any other Credit Document or any agreement or instrument
contemplated hereby, the transactions contemplated hereby or thereby, any Loan
or Letter of Credit or the use of the proceeds thereof.  No Indemnitee referred to in paragraph (b) above
shall be liable for any damages arising from the use by unintended recipients
of any information or other materials distributed by it through
telecommunications, electronic or other information transmission systems in
connection with this Agreement or the other Credit Documents or the
transactions contemplated hereby or thereby.

 

(e)           Payments.  All amounts due under this Section shall
be payable promptly/not later than five (5) days after demand therefor.

 

 

109

 

                Section 9.6             Successors and Assigns;
Participations; Purchasing Lenders.

 

(a)           Successors and
Assigns Generally.  The provisions of
this Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns permitted hereby, except
that no Borrower may assign or otherwise transfer any of its rights or
obligations hereunder without the prior written consent of the Administrative
Agent and each Lender and no Lender may assign or otherwise transfer any of its
rights or obligations hereunder except (i) to an assignee in accordance
with the provisions of paragraph (b) of this Section, (ii) by
way of participation in accordance with the provisions of paragraph (d) of
this Section or (iii) by way of pledge or assignment of a security
interest subject to the restrictions of paragraph (f) of this Section (and
any other attempted assignment or transfer by any party hereto shall be null
and void).  Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than
the parties hereto, their respective successors and assigns permitted hereby,
Participants to the extent provided in paragraph (d) of this Section and,
to the extent expressly contemplated hereby, the Related Parties of each of the
Administrative Agent and the Lenders) any legal or equitable right, remedy or
claim under or by reason of this Agreement.

 

                (b)           Assignments by Lenders.  Any Lender may at any time assign to one or
more Eligible Assignees all or a portion of its rights and obligations under
this Agreement (including all or a portion of its Commitment and the Loans at
the time owing to it); provided that any such assignment shall be
subject to the following conditions:

 

                                (i)            Minimum
Amounts.

 

                                                                                                                (A)          in
the case of an assignment of the entire remaining amount of the assigning
Lender’s Commitment and the Loans at the time owing to it or in the case of an
assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no
minimum amount need be assigned; and

 

                                                                                                                (B)           in
any case not described in paragraph (b)(i)(A) of this Section, the
aggregate amount of the Commitment (which for this purpose includes Loans
outstanding thereunder) or, if the applicable Commitment is not then in effect,
the principal outstanding balance of the Loans of the assigning Lender subject
to each such assignment (determined as of the date the Assignment and
Assumption with respect to such assignment is delivered to the Administrative
Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of
the Trade Date) shall not be less than $2,5000,000, in the case of any
assignment in respect of a revolving facility, or $1,000,000, in the case of
any assignment in respect of a term facility, unless each of the Administrative
Agent and, so long as no Event of Default has occurred and is continuing, the
Borrower otherwise consents (each such consent not to be unreasonably withheld
or delayed).

 

                                                                (ii)           Proportionate
Amounts.  Each partial assignment
shall be made as an assignment of a proportionate part of all the assigning
Lender’s rights and obligations under this Agreement with respect to the Loan
or the Commitment assigned, except that 

 

 

110

 

this clause (ii) shall
not prohibit any Lender from assigning all or a portion of its rights and
obligations among separate Tranches on a non-pro rata basis.

 

                                                                (iii)          Required
Consents.  No consent shall be
required for any assignment except to the extent required by
paragraph (b)(i)(B) of this Section and, in addition:

 

                                                                                                                (A)          the
consent of the Parent Borrower (such consent not to be unreasonably withheld or
delayed) shall be required unless (x) an Event of Default has occurred and
is continuing at the time of such assignment, (y) such assignment is to a
Lender, an Affiliate of a Lender or an Approved Fund or (z) the primary
syndication of the Loans has not been completed as determined by Wachovia;

 

                                                                                                                (B)           the
consent of the Administrative Agent (such consent not to be unreasonably
withheld or delayed) shall be required for assignments in respect of (i) a
Revolving Commitment if such assignment is to a Person that is not a Lender
with a Commitment in respect of such facility, an Affiliate of such Lender or
an Approved Fund with respect to such Lender or (ii) a Term Loan
Commitment to a Person who is not a Lender, an Affiliate of a Lender or an
Approved Fund; and

 

                                                                                                                (C)           the
consent of the Issuing Lender (such consent not to be unreasonably withheld or
delayed) shall be required for assignments in respect of a Revolving
Commitment.

 

                                                                (iv)          Assignment
and Assumption.  The parties to each
assignment shall execute and deliver to the Administrative Agent an Assignment
and Assumption, together with a processing and recordation fee of $3,500, and
the assignee, if it is not a Lender, shall deliver to the Administrative Agent
an Administrative Questionnaire.

 

                                                                (v)           No
Assignment to a Borrower.  No such
assignment shall be made to any Borrower or any of Borrowers’ Affiliates or
Subsidiaries.

 

                                                                (vi)          No
Assignment to Natural Persons.  No
such assignment shall be made to a natural person.

 

                Subject to acceptance and
recording thereof by the Administrative Agent pursuant to paragraph (c) of
this Section, from and after the effective date specified in each Assignment
and Assumption, the assignee thereunder shall be a party to this Agreement and,
to the extent of the interest assigned by such Assignment and Assumption, have
the rights and obligations of a Lender under this Agreement, and the assigning
Lender thereunder shall, to the extent of the interest assigned by such
Assignment and Assumption, be released from its obligations under this
Agreement (and, in the case of an Assignment and Assumption covering all of the
assigning Lender’s rights and obligations under this Agreement, such Lender
shall cease to be a party hereto) but shall continue to be entitled to the
benefits of Sections 2.15, 2.16, 2.17, 2.18, 5.8 and 9.5  with respect to facts and circumstances occurring prior to
the effective date of such assignment. 
Any assignment or transfer by a Lender of rights or obligations under
this 

 

 

111

 

Agreement that
does not comply with this paragraph shall be treated for purposes of this
Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with paragraph (d) of this Section.

 

                (c)           Register.  The Administrative Agent, acting solely for
this purpose as an agent of the Borrowers, shall maintain at one of its offices
in Charlotte, North Carolina a copy of each Assignment and Assumption delivered
to it and a register for the recordation of the names and addresses of the
Lenders, and the Commitments of, and principal amounts of the Loans owing to,
each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be
conclusive, in the absence of manifest error, and the Borrowers, the
Administrative Agent and the Lenders may treat each Person whose name is
recorded in the Register pursuant to the terms hereof as a Lender hereunder for
all purposes of this Agreement, notwithstanding notice to the contrary.  The Register shall be available for
inspection by the Borrowers and any Lender, at any reasonable time and from
time to time upon reasonable prior notice.

 

                (d)           Participations.  Any Lender may at any time, without the
consent of, or notice to, the Parent Borrower or the Administrative Agent, sell
participations to any Person (other than a natural person or any Borrower or
any Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in
all or a portion of such Lender’s rights and/or obligations under this
Agreement (including all or a portion of its Commitment and/or the Loans owing
to it); provided that (i) such Lender’s obligations under this
Agreement shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations
and (iii) the Borrowers, the Administrative Agent and the Lenders, Issuing
Lender and Swingline Lender shall continue to deal solely and directly with
such Lender in connection with such Lender’s rights and obligations under this
Agreement.

 

                Any agreement or instrument
pursuant to which a Lender sells such a participation shall provide that such
Lender shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any provision of this Agreement; provided
that such agreement or instrument may provide that such Lender will not,
without the consent of the Participant, agree to any amendment, modification or
waiver that affects such Participant.  Subject
to paragraph (e) of this Section, the Borrower agrees that each
Participant shall be entitled to the benefits of Sections 2.15, 2.16 and
2.17 to the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to paragraph (b) of this Section.  To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 9.7  as though it were a Lender, provided such Participant
agrees to be subject to Section 2.12  as though it
were a Lender.

 

                (e)           Limitations upon Participant
Rights.  A Participant shall not be
entitled to receive any greater payment under Sections 2.15, 2.16 and 2.17
than the applicable Lender would have been entitled to receive with respect to
the participation sold to such Participant, unless the sale of the
participation to such Participant is made with the Parent Borrower’s prior
written consent.  A Participant that
would be a Foreign Lender if it were a Lender shall not be entitled to the
benefits of Section 2.16 unless the Parent Borrower is notified of the
participation sold to such 

 

 

112

 

Participant and
such Participant agrees, for the benefit of the Parent Borrower, to comply with
Section 2.17  as though it were a Lender.

 

                (f)            Certain Pledges.  Any Lender may at any time pledge or assign a
security interest in all or any portion of its rights under this Agreement to
secure obligations of such Lender, including any pledge or assignment to secure
obligations to a Federal Reserve Bank; provided that no such pledge or
assignment shall release such Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party hereto.

 

                Section 9.7             Right of Set-Off; Sharing of
Payments.

 

(a)           If an Event of
Default shall have occurred and be continuing, each Lender, the Issuing Lender,
and each of their respective Affiliates is hereby authorized at any time and
from time to time, to the fullest extent permitted by applicable law, to set
off and apply any and all deposits (general or special, time or demand,
provisional or final, in whatever currency) at any time held and other
obligations (in whatever currency) at any time owing by such Lender, the
Issuing Lender or any such Affiliate to or for the credit or the account of any
Borrower against any and all of the obligations of the Borrowers now or
hereafter existing under this Agreement or any other Credit Document to such
Lender or the Issuing Lender, irrespective of whether or not such Lender or the
Issuing Lender shall have made any demand under this Agreement or any other
Credit Document and although such obligations of the Borrowers may be
contingent or unmatured or are owed to a branch or office of such Lender or the
Issuing Lender different from the branch or office holding such deposit or
obligated on such indebtedness.  The
rights of each Lender, the Issuing Lender and their respective Affiliates under
this Section are in addition to other rights and remedies (including other
rights of setoff) that such Lender, the Issuing Lender or their respective
Affiliates may have.  Each Lender and the
Issuing Lender agrees to notify the Parent Borrower and the Administrative
Agent promptly after any such setoff and application, provided that the
failure to give such notice shall not affect the validity of such setoff and
application.

 

(b)           If any Lender
shall, by exercising any right of setoff or counterclaim or otherwise, obtain
payment in respect of any principal of or interest on any of its Loans or other
obligations hereunder resulting in such Lender’s receiving payment of a
proportion of the aggregate amount of its Loans and accrued interest thereon or
other such obligations greater than its pro  rata share thereof as
provided herein, then the Lender receiving such greater proportion shall (i) notify
the Administrative Agent of such fact, and (ii) purchase (for cash at face
value) participations in the Loans and such other obligations of the other
Lenders, or make such other adjustments as shall be equitable, so that the
benefit of all such payments shall be shared by the Lenders ratably in
accordance with the aggregate amount of principal of and accrued interest on
their respective Loans and other amounts owing them, provided that:

 

(i)            if
any such participations are purchased and all or any portion of the payment
giving rise thereto is recovered, such participations shall be rescinded and
the purchase price restored to the extent of such recovery, without interest;
and

 

 

 

113

 

 

(ii)           the
provisions of this paragraph shall not be construed to apply to (A) any
payment made by the Borrowers pursuant to and in accordance with the express
terms of this Agreement or (B) any payment obtained by a Lender as
consideration for the assignment of or sale of a participation in any of its
Loans or participations in Letters of Credit to any assignee or participant,
other than to any Borrower or any Subsidiary thereof (as to which the
provisions of this paragraph shall apply).

 

(c)           Each Borrower consents
to the foregoing and agrees, to the extent it may effectively do so under
applicable law, that any Lender acquiring a participation pursuant to the
foregoing arrangements may exercise against each Borrower rights of setoff and
counterclaim with respect to such participation as fully as if such Lender were
a direct creditor of each  Borrower in
the amount of such participation.

 

                Section 9.8             Table of Contents and Section Headings.

 

                The table of contents and the Section and
subsection headings herein are intended for convenience only and shall be
ignored in construing this Agreement.

 

                Section 9.9             Counterparts; Integration;
Effectiveness; Electronic Execution.

 

(a)           Counterparts;
Integration; Effectiveness.  This
Agreement may be executed in counterparts (and by different parties hereto in
different counterparts), each of which shall constitute an original, but all of
which when taken together shall constitute a single contract.  This Agreement and the other Credit
Documents, and any separate letter agreements with respect to fees payable to
the Administrative Agent, constitute the entire contract among the parties
relating to the subject matter hereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter
hereof.  Except as provided in Section 4.1,
this Agreement shall become effective when it shall have been executed by the
Administrative Agent and when the Administrative Agent shall have received
counterparts hereof that, when taken together, bear the signatures of each of
the other parties hereto.  Delivery of an
executed counterpart of a signature page of this Agreement by telecopy or
email shall be effective as delivery of a manually executed counterpart of this
Agreement.

 

(b)           Electronic Execution
of Assignments.  The words “execution,”
“signed,” “signature,” and words of like import in any Assignment and
Assumption shall be deemed to include electronic signatures or the keeping of
records in electronic form, each of which shall be of the same legal effect,
validity or enforceability as a manually executed signature or the use of a
paper-based recordkeeping system, as the case may be, to the extent and as
provided for in any applicable law, including the Federal Electronic Signatures
in Global and National Commerce Act, the New York State Electronic Signatures
and Records Act, or any other similar state laws based on the Uniform
Electronic Transactions Act.

 

                Section 9.10           Severability.

 

                Any provision of this Agreement
that is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability 

 

 

114

 

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.

 

                Section 9.11           Integration.

 

                This Agreement and the other
Credit Documents represent the agreement of the Borrowers, the Administrative
Agent and the Lenders with respect to the subject matter hereof, and there are
no promises, undertakings, representations or warranties by the Administrative
Agent, the Borrowers or any Lender relative to the subject matter hereof not
expressly set forth or referred to herein or in the other Credit Documents.

 

                Section 9.12           Governing Law.

 

                This Agreement and the Notes and
the rights and obligations of the parties under this Agreement and the Notes
shall be governed by, and construed and interpreted in accordance with, the law
of the State of North Carolina without giving effect to any such law that would
require the application of the law of a jurisdiction other than the State of
North Carolina to this Agreement and the other Credit Documents.

 

                Section 9.13           Consent to Jurisdiction and
Service of Process.

 

                All judicial proceedings brought
against the Borrowers with respect to this Agreement, any Note or any of the
other Credit Documents may be brought in any state or federal court of
competent jurisdiction in the State of North Carolina, and, by execution and
delivery of this Agreement, each of the Borrowers accepts solely for purposes
of matters arising out of this Agreement, any Note or any of the other Credit
Documents, for itself and in connection with its properties, generally and
unconditionally, the non-exclusive jurisdiction of the aforesaid courts and
irrevocably agrees to be bound by any final judgment rendered thereby in
connection with this Agreement from which no appeal has been taken or is
available.  Each of Borrowers irrevocably
agrees that all service of process in any such proceedings in any such court
may be effected by mailing a copy thereof by registered or certified mail (or
any substantially similar form of mail), postage prepaid, to it at its address
set forth in Section 9.2 or at such other address of which the
Administrative Agent shall have been notified pursuant thereto, such service
being hereby acknowledged by the Borrowers to be effective and binding service
in every respect.  Each of the Borrowers,
the Administrative Agent and the Lenders irrevocably waives any objection,
including, without limitation, any objection to the laying of venue or based on
the grounds of forum non conveniens that it may now or hereafter have to the
bringing of any such action or proceeding in any such jurisdiction.  Nothing herein shall affect the right to
serve process in any other manner permitted by law or shall limit the right of
the Administrative Agent or any Lender to bring proceedings against the
Borrowers in the court of any other jurisdiction.

 

                Section 9.14           Confidentiality.

 

Each of the
Administrative Agent, the Lenders and the Issuing Lender agrees to maintain the
confidentiality of the Information (as defined below), except that Information
may be 

 

 

 

115

 

disclosed (a) to its
Affiliates and to its and its Affiliates’ respective partners, directors,
officers, employees, agents, advisors and other representatives (it being
understood that the Persons to whom such disclosure is made will be informed of
the confidential nature of such Information and instructed to keep such
Information confidential), (b) to the extent requested by any regulatory
authority purporting to have jurisdiction over it (including any
self-regulatory authority, such as the National Association of Insurance
Commissioners), (c) to the extent required by applicable laws or
regulations or by any subpoena or similar legal process, (d) to any other
party hereto, (e) in connection with the exercise of any remedies
hereunder, under any other Credit Document or any Bank Product or any action or
proceeding relating to this Agreement, any other Credit Document or any Bank
Product or the enforcement of rights hereunder or thereunder, (f) subject
to an agreement containing provisions substantially the same as those of this
Section, to any assignee of or Participant in, or any prospective assignee of
or Participant in, any of its rights or obligations under this Agreement, (g) (i) any
actual or prospective counterparty (or its advisors) to any swap or derivative
transaction relating to the Borrower and its obligations, (ii) an investor
or prospective investor in securities issued by an Approved Fund that also
agrees that Information shall be used solely for the purpose of evaluating an
investment in such securities issued by the Approved Fund, (iii) a
trustee, collateral manager, servicer, backup servicer, noteholder or secured
party in connection with the administration, servicing and reporting on the
assets serving as collateral for securities issued by an Approved Fund, or (iv) a
nationally recognized rating agency that requires access to information
regarding the Borrowers, the Loans and Credit Documents in connection with
ratings issued in respect of securities issued by an Approved Fund (in each
case, it being understood that the Persons to whom such disclosure is made will
be informed of the confidential nature of such information and instructed to
keep such information confidential), (h) with
the consent of the Parent Borrower or (i) to the extent such Information (x) becomes
publicly available other than as a result of a breach of this Section or (y) becomes
available to the Administrative Agent, any Lender, the Issuing Lender or any of
their respective Affiliates on a nonconfidential basis from a source other than
the Borrowers.

 

For purposes of this
Section, “Information” means all information received from any Borrower
or any of its Subsidiaries relating to any Borrower or any of its Subsidiaries
or any of their respective businesses, other than any such information that is
available to the Administrative Agent, any Lender or the Issuing Lender on a
nonconfidential basis prior to disclosure by any Borrower or any of its
Subsidiaries, provided that, in the case of information received from
any Borrower or any of its Subsidiaries after the date hereof, such information
is clearly identified at the time of delivery as confidential or is information
which by its nature would reasonably be deemed to be confidential.  Any Person required to maintain the
confidentiality of Information as provided in this Section shall be
considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential information.

 

                Section 9.15           Acknowledgments.

 

                The Borrowers each hereby
acknowledges that:

 

 

 

 

 

 

 

 

116

 

(a)           it has been
advised by counsel in the negotiation, execution and delivery of each Credit
Document;

 

(b)           neither the
Administrative Agent nor any Lender has any fiduciary relationship with or duty
to the Borrowers arising out of or in connection with this Agreement and the
relationship between Administrative Agent and Lenders, on one hand, and the
Borrowers, on the other hand, in connection herewith is solely that of debtor
and creditor; and

 

(c)           no joint venture
exists among the Lenders or among the Borrowers and the Lenders.

 

Section 9.16           Waivers of Jury Trial; Waiver of
Consequential Damages.

 

EACH PARTY HERETO HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR
INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT
DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY).  EACH
PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER
PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

Section 9.17           Patriot Act Notice.

 

Each Lender and the
Administrative Agent (for itself and not on behalf of any other party) hereby
notifies the Borrowers that, pursuant to the requirements of the Patriot Act,
it is required to obtain, verify and record information that identifies the
Borrowers, which information includes the name and address of the Borrowers and
other information that will allow such Lender or the Administrative Agent, as
applicable, to identify the Borrowers in accordance with the Patriot Act.

 

Section 9.18           Resolution of Drafting Ambiguities.

 

Each Borrower
acknowledges and agrees that it was represented by counsel in connection with
the execution and delivery of this Agreement and the other Credit Documents to
which it is a party, that it and its counsel reviewed and participated in the
preparation and negotiation hereof and thereof and that any rule of
construction to the effect that ambiguities are to be resolved against the
drafting party shall not be employed in the interpretation hereof or thereof.

 

 

 

 

 

 

 

117

 

Section 9.19           Continuing Agreement.

 

This
Credit Agreement shall be a continuing agreement and shall remain in full force
and effect until all Loans, LOC Obligations, interest, fees and other Borrowers’
Obligations (other than those obligations that expressly survive the
termination of this Credit Agreement) have been paid in full and all
Commitments and Letters of Credit have been terminated.  Upon termination, the Borrowers shall have no
further obligations (other than those obligations that expressly survive the
termination of this Credit Agreement) under the Credit Documents and the
Administrative Agent shall, at the request and expense of the Borrowers,
deliver all the Collateral in its possession to the Borrowers and release all
Liens on the Collateral; provided that should any payment, in whole or
in part, of the Borrowers’ Obligations be rescinded or otherwise required to be
restored or returned by the Administrative Agent or any Lender, whether as a
result of any proceedings in bankruptcy or reorganization or otherwise, then
the Credit Documents shall automatically be reinstated and all Liens of the
Administrative Agent shall reattach to the Collateral and all amounts required
to be restored or returned and all costs and expenses incurred by the
Administrative Agent or any Lender in connection therewith shall be deemed
included as part of the Borrowers’ Obligations.

 

Section 9.20           Lender Consent.

 

Each
Person signing a Lender Consent (a) approves the Credit Agreement and acknowledges and
agrees that all of the conditions set forth in Section 4.1 subject to such
Lender’s approval have been satisfied, (b) authorizes and appoints the
Administrative Agent as its agent in accordance with the terms of Article VIII,
(c) authorizes the Administrative Agent to execute and deliver this
Agreement on its behalf, (d) is a Lender hereunder and therefore shall
have all the rights and obligations of a Lender under this Agreement as if such
Person had directly executed and delivered a signature page to this
Agreement.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

118

 

                IN WITNESS WHEREOF, the parties
hereto have caused this Agreement to be duly executed and delivered by its
proper and duly authorized officers as of the day and year first above written.

 

	
  PARENT BORROWER:

  	
   

  	
   

  	
  SI INTERNATIONAL, INC.,

  	
   

  
	
   

  	
   

  	
   

  	
  a Delaware corporation

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Thomas E. Dunn

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Thomas E. Dunn

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive Vice President, Chief

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Financial Officer & Treasurer

  	
   

  	
   

  

 

 

	
  SUBSIDIARY

  BORROWERS:

  	
   

  	
  SI INTERNATIONAL APPLICATION DEVELOPMENT, INC.,

  
	
   

  	
  a Maryland corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Thomas E. Dunn

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Thomas E. Dunn

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive Vice President, Chief

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Financial Officer & Treasurer

  	
   

  	
   

  

 

 

	
   

  	
   

  	
   

  	
  SI INTERNATIONAL CONSULTING, INC.,

  	
   

  
	
   

  	
   

  	
   

  	
  a Delaware corporation

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By

  	
  /s/ Thomas E. Dunn

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Thomas E. Dunn

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive Vice President, Chief

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Financial Officer & Treasurer

  	
   

  	
   

  

 

 

	
   

  	
   

  	
   

  	
  SI INTERNATIONAL LEARNING, INC.,

  	
   

  
	
   

  	
   

  	
   

  	
  a Maryland corporation

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Thomas E. Dunn

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Thomas E. Dunn

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive Vice President, Chief

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Financial Officer & Treasurer

  	
   

  	
   

  

 

 

 

 

119

 

	
   

  	
   

  	
  MATCOM INTERNATIONAL CORP.,

  	
   

  
	
   

  	
   

  	
  a Delaware corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Thomas E. Dunn

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Thomas E. Dunn

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President, Chief

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Financial Officer & Treasurer

  	
   

  	
   

  

 

 

	
   

  	
   

  	
   

  	
  SI INTERNATIONAL TECHNOLOGY SERVICES, INC.

  f/k/a Materials, Communication and Computers, Inc.,

  
	
   

  	
   

  	
   

  	
  a North Carolina corporation

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Thomas E. Dunn

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Thomas E. Dunn

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive Vice President, Chief

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Financial Officer & Treasurer

  	
   

  	
   

  

 

 

	
   

  	
   

  	
   

  	
  BRIDGE TECHNOLOGY CORPORATION,

  	
   

  
	
   

  	
   

  	
   

  	
  a Virginia corporation

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Thomas E. Dunn

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Thomas E. Dunn

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive Vice President, Chief

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Financial Officer & Treasurer

  	
   

  	
   

  

 

 

	
   

  	
   

  	
   

  	
  SHENANDOAH ELECTRONIC INTELLIGENCE, INC.,

  
	
   

  	
   

  	
   

  	
  a Virginia corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Thomas E. Dunn

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Thomas E. Dunn

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive Vice President, Chief

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Financial Officer & Treasurer

  	
   

  	
   

  

 

 

 

 

120

 

	
   

  	
   

  	
   

  	
  SI INTERNATIONAL SEIT, INC.,

  	
   

  
	
   

  	
   

  	
   

  	
  a Virginia corporation

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Thomas E. Dunn

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Thomas E. Dunn

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive Vice President, Chief

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Financial Officer & Treasurer

  	
   

  	
   

  

 

 

	
   

  	
   

  	
   

  	
  SI INTERNATIONAL ZEN TECHNOLOGY, INC.,

  
	
   

  	
   

  	
   

  	
  a Virginia corporation

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Thomas E. Dunn

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Thomas E. Dunn

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive Vice President, Chief

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Financial Officer & Treasurer

  	
   

  	
   

  

 

 

	
   

  	
   

  	
   

  	
  LOGTEC, INC.,

  
	
   

  	
   

  	
   

  	
  an Ohio corporation

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Thomas E. Dunn

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Thomas E. Dunn

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive Vice President, Chief

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Financial Officer & Treasurer

  	
   

  	
   

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

121

 

 

	
  ADMINISTRATIVE AGENT

  	
   

  	
   

  	
   

  
	
  AND LENDERS:

  	
   

  	
   

  	
   

  
	
   

  	
  WACHOVIA BANK,
  NATIONAL ASSOCIATION,

  	
   

  	
   

  
	
   

  	
  as
  Administrative Agent on behalf of the Lenders

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ James R. Zilisch

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  James R Zilisch

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing Director

  	
   

  
										

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

122Exhibit 4.01

 

CUSIP
NO. 5252M0BT3

ISIN NO. US5252M0BT32

 

	
  REGISTERED

  	
   

  	
  PRINCIPAL AMOUNT:
  $418,000

  
	
  No. R-1

  	
   

  	
   

  

 

LEHMAN BROTHERS HOLDINGS INC.

 

MEDIUM-TERM NOTE, SERIES I

 

NOTES LINKED TO A LATIN AMERICAN CURRENCY BASKET
 DUE FEBRUARY 12, 2010

 

THIS
NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY OR A NOMINEE OF THE
DEPOSITORY.  UNLESS THIS CERTIFICATE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55
WATER STREET, NEW YORK, NEW YORK) TO THE COMPANY (AS DEFINED BELOW) OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND
ANY PAYMENT IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

UNLESS
AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED
FORM (A “CERTIFICATED NOTE”), THIS GLOBAL SECURITY MAY NOT BE
TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY
OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE
DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY
OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY.

 

 

LEHMAN BROTHERS HOLDINGS INC., a corporation duly organized and
existing under the laws of the State of Delaware (herein called the “Company,”
which term includes any successor corporation under the Indenture referred to
on the reverse hereof), for value received, hereby promises to pay to CEDE &
Co., or registered assigns, on the Maturity Date, an amount equal to the Redemption Amount.

 

The “Maturity Date” is February 12,
2010, or if such day is not a Business Day, on the next following Business Day.

 

The “Valuation
Date” is February 8, 2010; provided that, upon the occurrence of a
Disruption Event with respect to a Basket Currency, the Valuation Date for the
affected Basket Currency may be postponed (as described in “Disruption Events”
below).

 

The “Redemption
Amount” is the amount equal to the sum of the principal amount of the Notes of
$1,000, plus the Additional Amount, if any.

 

The “Additional
Amount” is an amount per Note equal to the greater of (a) zero and (b) $1,000
multiplied by the product of the Basket Return times the Participation Rate.

 

The “Participation
Rate” is 270%.

 

The “Basket”
is the Brazilian Real (BRL), the Argentine Peso (ARS), the Mexican Peso (MXN)
and the Chilean Peso (CLP), each a “Basket Currency” and collectively the “Basket
Currencies”.

 

The “Basket Return”
is a quotient, the numerator of which is the difference of the Basket Ending
Level minus the Basket Starting Level and the denominator of which is the
Basket Starting Level.

 

The “Basket
Starting Level” is set equal to 100 on the Trade Date.

 

The “Basket Ending
Level” is the Basket closing level on the Valuation Date, equal to the product
of 100 times the sum of 1 plus the sum of the Weighted Currency Returns.

 

The “Weighted
Currency Return” for each Basket Currency is the product of the Currency Return
for such Basket Currency times the Basket Currency Weighting for such Basket
Currency.

 

The “Currency
Return” for each Basket Currency is a quotient, the numerator of which is the
difference of the Initial Spot Rate for such Basket Currency minus the Final
Spot Rate for such Basket Currency and the denominator of which is the Final
Spot Rate for such Basket Currency.

 

The “Final Spot
Rate” for each Basket Currency is the Reference Exchange Rate for that Basket
Currency on the Valuation Date, determined by the Calculation Agent in
accordance with the Spot Rate Source (subject to the occurrence of a Disruption
Event).

 

The “Weighting”
and “Initial Spot Rate” for each Basket Currency are as follows:

 

	
  Basket 

  Currency

  	
   

  	
  Weighting

  	
   

  	
  Initial Spot 

  Rate

  	
   

  
	
  BRL

  	
   

  	
  25

  	
  %

  	
  1.7681

  	
   

  
	
  ARS

  	
   

  	
  25

  	
  %

  	
  3.16800

  	
   

  
	
  MXN

  	
   

  	
  25

  	
  %

  	
  10.8227

  	
   

  
	
  CLP

  	
   

  	
  25

  	
  %

  	
  473.97

  	
   

  

 

2

 

The “Reference
Exchange Rates” are, for each Basket Currency, the spot exchange rates for that
Basket Currency quoted against the U.S. dollar, expressed as the number of
units of the Basket Currency per one USD.

 

The “Issue
Date” is February 14, 2008.

 

If a
Disruption Event relating to one or more of the Basket Currencies is in effect
on the scheduled Valuation Date, the Calculation Agent will calculate the
Basket Return using:

 

·                                          for each Basket Currency
that did  not suffer a Disruption Event on the scheduled
Valuation Date, the Final Spot Rate on the scheduled Valuation Date, and

 

·                                          for each Basket Currency
that did suffer a Disruption Event
on the scheduled Valuation Date, the Final Spot Rate on the immediately
succeeding scheduled Valuation Business Day for such Basket Currency on which
no Disruption Event occurs or is continuing with respect to such Basket
Currency;

 

provided, however, that if a
Disruption Event has occurred or is continuing with respect to a Basket
Currency on each of the three scheduled Valuation Business Days following the
scheduled Valuation Date, then (a) such third scheduled Valuation Business
Day shall be deemed the Valuation Date for the affected Basket Currency; and (b) the
Calculation Agent will determine the Final Spot Rate for the affected Basket
Currency on such day in accordance with Fallback Rate Observation Methodology.

 

For
purposes of the above, “scheduled Valuation Business Day” means a day that is
or, in the judgment of the Calculation Agent, should have been, a Valuation
Business Day for the affected Basket Currency.

 

A “Disruption
Event” means any of the
following events with respect to a Basket Currency, as determined in good faith
by the Calculation Agent:

 

(A)                              the occurrence and/or existence of an event on any day that has the
effect of preventing or making impossible (x) the delivery of USD from
accounts inside the Basket Currency Jurisdiction for that Basket Currency to
accounts outside that Basket Currency Jurisdiction, or (y) for MXN only,
the conversion of the Basket Currency into USD through customary legal
channels;

 

(B)                                the occurrence of any event causing the Reference
Exchange Rate for the Basket Currency to be split into dual or multiple
currency exchange rates; or

 

3

 

(C)                                the Final Spot Rate being unavailable for the Basket Currency, or the
occurrence of an event (i) in the Basket Currency Jurisdiction for that
Basket Currency that materially disrupts the market for the Basket Currency or (ii) that
generally makes it impossible to obtain the Final Spot Rate for the Basket
Currency, on the Valuation Date.

 

A “Valuation Business Day” means,
with respect to each Basket Currency, any day, other than a Saturday or Sunday,
that is neither a legal holiday nor a day on which commercial banks are
authorized or required by law, regulation or executive order to close
(including for dealings in foreign exchange in accordance with the practice of
the foreign exchange market) in the city or jurisdiction indicated in the table
below:

 

	
  Basket Currency

  	
   

  	
  Screen Reference

  	
   

  	
  Valuation Business Day

  	
   

  
	
  BRL

  	
   

  	
  BRFR

  	
   

  	
  Brazilia, Rio de Janiero or 

  São Paulo; and New York

  	
   

  
	
  ARS

  	
   

  	
  ARS=

  	
   

  	
  Buenos Aires and New 

  York

  	
   

  
	
  MXN

  	
   

  	
  USDMXNFIX

  	
   

  	
  Mexico City and New 

  York

  	
   

  
	
  CLP

  	
   

  	
  CLPOB

  	
   

  	
  Santiago and New York

  	
   

  

 

The “Spot Rate Source” for
the BRL is the Brazilian Real/U.S. Dollar offered rate for U.S. Dollars,
expressed as the amount of Brazilian Reals per one U.S. Dollar, for settlement
in two Business Days reported by the Banco Central do Brasil on SISBACEN Data
System under transaction code PTAX-800 (“Consulta de Cambio” or Exchange Rate
Inquiry), Option 5 (“Cotacoes para Contabilidade” or Rates for Accounting
Purposes), which appears on Reuters Screen BRFR Page under the caption “Dolar
PTAX” at approximately 6:30 pm Sao Paolo time on the Trade Date or Valuation
Date, as applicable.  The Spot Rate
Source for the ARS is the Argentine Peso/U.S. dollar official fixing rate,
expressed as the amount of Argentine Pesos per one U.S. dollar for settlement
on the same day (or, if that day is not a business day in Buenos Aires and New
York, for settlement on the first succeeding day that is a business day in both
Buenos Aires and New York) which appears on the Reuters Screen ARS= page at
the close of business in Buenos Aires on that Valuation Date.  The Spot Source Rate for the MXN is the
Mexican Peso/U.S. Dollar official fixing rate, expressed as the amount of
Mexican Pesos per one U.S. Dollar, for settlement in two business days reported
by Banco de Mexico which appears on Reuters Screen MEX01 Page under the
heading “USDMXNFIX=“ at the close of business in Mexico City on the Start Date or such other relevant date. 
The Spot Source Rate for the CLP is the Chilean Peso/U.S. Dollar
observado rate, expressed as the amount of Chilean Pesos per one U.S. Dollar,
for settlement on the same day reported by the Banco Central de Chile which
appears on the Reuters Screen CLPOB=Page below the caption “Value” at
approximately 10:00 a.m., Santiago time, on the first Business Day
following the relevant Valuation Date. 
The term “business day” solely as used in any Spot Rate Source described
above shall mean any day, other than a Saturday or Sunday, that is neither a
legal holiday nor a day on which commercial banks are authorized or required by
law, regulation or executive order to close (including for dealings in foreign
exchange in accordance with the practice of the foreign exchange market) in the
Principal Financial Center for both (a) the Basket Currency and (b) the
currency against which the Basket Currency is quoted (the “base currency”) in
accordance with the Reference Exchange 

 

4

 

Rate specified in the
applicable pricing supplement, in each case as specified for the applicable
Basket Currency or base currency in the table above.

 

The screen or time of observation
indicated in relation to any Final Spot Rate above shall be deemed to refer to
such screen or time of observation as modified or amended from time to time, or
to any substitute screen thereto.

 

The “Fallback
Rate Observation Methodology” means
that the Reference Exchange Rate, Final Spot Rate or other rate, as specified
in the applicable pricing supplement, in respect of a basket currency will
equal the noon buying rate in New York for cable transfers in foreign
currencies as announced by the Federal Reserve Bank of New York for customs
purposes (the “Noon Buying Rate”) on the relevant Valuation Date or such other
date specified in the applicable pricing supplement. If the Noon Buying Rate is
not announced on that date, the Reference Exchange Rate, Final Spot Rate or
other rate for such Basket Currency will be calculated on the basis of the arithmetic
mean of the applicable spot quotations received by the Calculation Agent at
approximately 10:00 a.m., New York City time, on the Valuation Business
Day next succeeding the Valuation Date or such other date specified in the
applicable pricing supplement, for the purchase or sale for deposits in the
basket currency by the New York offices of three leading banks engaged in the
interbank market (selected in the sole discretion of the Calculation Agent)
(the “Reference Banks”). If fewer than three Reference Banks provide spot
quotations, then the Reference Exchange Rate, Final Spot Rate or other rate, as
applicable, will be calculated on the basis of the arithmetic mean of the
applicable spot quotations received by the Calculation Agent at approximately
10:00 a.m., New York City time, on the relevant date from two Reference
Banks (selected in the sole discretion of the Calculation Agent), for the
purchase or sale for deposits in the Basket Currency. If these spot quotations
are available from only one Reference Bank, then the Calculation Agent, in its
sole discretion, will determine whether that quotation is reasonable to be
used. If no spot quotation is available, then the Reference Exchange Rate,
Final Spot Rate or other rate, as applicable, for such Basket Currency will be
determined by the Calculation Agent in good faith and in a commercially
reasonable manner.

 

A “Business Day”, notwithstanding any
provision in the Indenture, is any day that is not is not a Saturday or Sunday
and that is not a day on which banking institutions in New York City generally
are authorized or obligated by law or executive order to be closed.

 

The “Calculation Agent” means Lehman Brothers
Inc.

 

Except as provided below, the Redemption Amount may, at the option of
the Company, be made by check mailed to the person entitled thereto at such
person’s address as it appears on the registry books of the Company.

 

Payment of the Redemption Amount will be made in immediately available
funds in accordance with the normal procedures of the Trustee (or any duly
appointed Paying Agent).

 

The Company will pay any administrative costs imposed by banks
in making payments in immediately available funds, but any tax, assessment or
governmental charge imposed upon payments hereunder, including, without
limitation, any withholding tax, will be borne by the Holder hereof.

 

5

 

References herein
to “U.S. dollars” or “U.S.$” or “$” or “USD” are to the coin or currency of the
United States as at the time of payment is legal tender for the payment of
public and private debts.

 

REFERENCE IS
HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH ON THE REVERSE
HEREOF.  SUCH FURTHER PROVISIONS SHALL
FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE.

 

This Note shall
not be valid or become obligatory for any purpose until the certificate of
authentication hereon shall have been signed by the Trustee under the
Indenture.

 

6

 

IN WITNESS
WHEREOF, Lehman Brothers Holdings Inc. has caused this instrument to be signed
by its Chairman of the Board, its President, its Vice Chairman, its Chief
Financial Officer, one of its Vice Presidents or its Treasurer, by manual or
facsimile signature under its corporate seal, attested by its Secretary or one
of its Assistant Secretaries by manual or facsimile signature.

 

Dated:  February 14, 2008

 

	
  [SEAL]

  	
  LEHMAN BROTHERS
  HOLDINGS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: Andrew Yeung

  
	
   

  	
   

  	
  Title:   Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
  Name: Cindy Buckholz

  
	
   

  	
   

  	
  Title:   Assistant Secretary

  

 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the
Securities of the series designated herein referred to in the within-mentioned
Indenture.

 

CITIBANK, N.A.

  as Trustee

 

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized
  Officer

  

 

7

 

[REVERSE
OF NOTE]

 

LEHMAN BROTHERS
HOLDINGS INC.

MEDIUM-TERM NOTES,
SERIES I

NOTES LINKED TO A LATIN AMERICAN CURRENCY BASKET
 DUE FEBRUARY 12, 2010

 

Section 1.  General.  This Note is one of a duly authorized series
of Notes of the Company designated as the Medium-Term Notes, Series I,
Notes Linked to a Latin American Currency Basket (herein called the “Notes”).  The
Notes are one of an indefinite number of series of debt securities of the
Company (collectively, the “Securities”) issued or issuable under and pursuant
to an indenture dated as of September 1, 1987, as amended and supplemented
(the “Indenture”), duly executed and delivered by the Company and Citibank,
N.A., as Trustee (herein called the “Trustee”), to which Indenture and all
indentures supplemental thereto reference is hereby made for a description of
the rights, limitations of rights, obligations, duties and immunities
thereunder of the Trustee, the Company and the holders of the Securities.  The separate series of Securities may be
issued in various aggregate principal amounts, may mature at different times,
may bear interest (if any) at different rates, may be subject to different
redemption provisions or repurchase rights (if any), may be subject to
different sinking, purchase or analogous funds (if any), may be subject to
different covenants and Events of Default and may otherwise vary as in the
Indenture provided.

 

Section 2.  Principal Amount for Indenture Purposes.  For the purpose of determining whether
Holders of the requisite amount of Notes of this series outstanding under the
Indenture have made a demand, given a notice or waiver or taken any other
action, the principal amount of this Note will be deemed to be the principal amount
of this Note then outstanding.

 

Section 3.  Modification and Waivers.  The Indenture contains provisions permitting
the Company and the Trustee, with the consent of the Holders of not less than
66-2/3% in aggregate principal amount of each series of the Securities at the
time Outstanding to be affected, evidenced as in the Indenture provided, to
execute supplemental indentures adding any provisions to or changing in any
manner or eliminating any of the provisions of the Indenture or of any
supplemental indenture or modifying in any manner the rights of the holders of
the Securities of all such series; provided, however, that no such supplemental
indenture shall, among other things, (i) change the fixed maturity of any
Security, or reduce the Additional Amount or the principal amount thereof, or
reduce the rate or extend the time of payment of interest thereon or reduce any
premium or other amount payable on redemption, or make the Additional Amount or
the principal amount thereof, premium or other amount payable, if any, or
interest thereon payable in any coin or currency other than that herein above
provided, without the consent of the Holder of each Security so affected, or (ii) change
the place of payment on any Security, or impair the right to institute suit for
payment on any Security, or reduce the aforesaid percentage of Securities, the
holders of which are required to consent to any such supplemental indenture,
without the consent of the holders of each Security so affected.  It is also provided in the Indenture that,
prior to any declaration accelerating the maturity of any series of Securities,
the holders of a majority in aggregate principal amount of the Securities of
such series 

 

 

Outstanding may on behalf
of the holders of all the Securities of such series waive any past default or
Event of Default under the Indenture with respect to such series and its
consequences, except a default in the payment of interest, if any, on the
Additional Amount or the principal amount, or premium, if any, on any of the
Securities of such series, or in the payment of any sinking fund installment or
analogous obligation with respect to Securities of such series.  Any such consent or waiver by the Holder of
this Note shall be conclusive and binding upon such Holder and upon all future
holders and owners of this Note and any Notes of this series which may be
issued in exchange or substitution herefor, irrespective of whether or not any
notation thereof is made upon this Note or such other Notes of this series.

 

Section 4.  Obligations Unconditional.  No reference herein to the Indenture and no
provisions of this Note or of the Indenture shall alter or impair the
obligation of the Company, which is absolute and unconditional, to pay the
Additional Amount or the principal amount on this Note at the place, at the
respective times, at the rate, and in the coin or currency herein prescribed.

 

Section 5.  Defeasance.  The Indenture contains provisions for the
discharge of the Indenture and defeasance at any time of the indebtedness on
this Note upon compliance by the Company with certain conditions set forth
therein, which provisions apply to this Note.

 

Section 6.  Authorized Form and Denominations.  The Notes of this series are issuable in
registered form, without coupons.  Each
Note will be issued initially as either a Global Security or a Certificated
Note, at the option of the Company, in denominations of $1,000 or whole
multiples of $1,000, either at the office or agency to be designated and
maintained by the Company for such purpose in the Borough of Manhattan, New
York City, pursuant to the provisions of the Indenture or at any of such other
offices or agencies as may be designated and maintained by the Company for such
purpose pursuant to the provisions of the Indenture, and in the manner and
subject to the limitations provided in the Indenture, but without the payment
of any service charge, except for any tax or other governmental charges imposed
in connection therewith.  Notes of this
series are exchangeable for a like aggregate principal amount of Notes of this
series of a different authorized denomination, except that Global Securities
will not be exchangeable for Certificated Notes of this series.

 

Section 7.  Registration of Transfer.  As provided in the Indenture and subject to
certain limitations as therein set forth, the transfer of this Note is
registrable in the Security Register, upon surrender of this Note for
registration of transfer, at the Corporate Trust Office or agency in a Place of
Payment for this Note, duly endorsed by, or accompanied by a written instrument
of transfer in form satisfactory to the Company and the Security Registrar
requiring such written instrument of transfer duly executed by, the Holder
hereof or his attorney duly authorized in writing, and thereupon one or more
new Notes of this series, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.

 

If at any time the
Depository notifies the Company that it is unwilling or unable to continue as
Depository or if at any time the Depository shall no longer be eligible under
the Indenture, the Company shall appoint a successor Depository.  If a successor Depository for the Notes of
this series is not appointed by the Company within 90 days after the Company
receives such notice or becomes aware of such ineligibility, the Company will
issue, and the Trustee will 

 

 

authenticate and deliver,
Notes of this series in definitive form in an aggregate principal amount equal
to the principal amount of this Note.

 

No service charge
shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection therewith.

 

Prior to due
presentment of this Note for registration of transfer, the Company, the Trustee
and any agent of the Company or the Trustee may treat the person in whose name
this Note is registered as the owner hereof for all purposes, and neither the
Company nor the Trustee nor any agent of the Company or of the Trustee shall be
affected by any notice to the contrary.

 

Section 8.  Events of Default.  If an Event of Default with respect to Notes
of this series shall occur and be continuing, the amount that may be declared
due and payable upon any acceleration of the notes will be determined by the
Calculation Agent for the period from and including the Issue Date to but
excluding the date of early repayment and will equal, for each note, the Redemption
Amount, calculated as the date of early repayment were the Maturity Date. If a
bankruptcy proceeding is commenced in respect of Lehman Brothers Holdings, the
claim of the beneficial owner of a note for the period from and including the
Issue Date to but excluding the date of early repayment will be capped at the
Redemption Amount, calculated as though the date of the commencement of the
proceeding were the Maturity Date.

 

Section 9.  No Recourse Against Certain Persons.  No recourse for the payment of the Additional
Amount or for any claim based hereon or otherwise in respect hereof, and no
recourse under or upon any obligation, covenant or agreement of the Company in
the Indenture or any Indenture supplemental thereto or in any Note, or because
of the creation of any indebtedness represented thereby, shall be had against
any incorporator, stockholder, officer or director, as such, past, present or
future, of the Company or of any successor corporation, either directly or
through the Company or any successor corporation, whether by virtue of any
constitution, statute or rule of law or by the enforcement of any
assessment or penalty or otherwise, all such liability being, by the acceptance
hereof and as part of the consideration for the issue hereof, expressly waived
and released.

 

Section 10.  Defined
Terms.  All terms used but not
defined in this Note are used herein as defined in the Indenture.

 

Section 11.  GOVERNING LAW.  THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

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