Document:

Exhibit 10.8

 

 

SENIOR UNSECURED CREDIT AGREEMENT

 

dated as of April 1, 2008

 

among

 

MAC-GRAY CORPORATION,

MAC-GRAY SERVICES, INC.

and

INTIRION CORPORATION,

as Borrowers,

 

THE LENDERS PARTY HERETO

 

and

BANK OF AMERICA, N.A.,

as Administrative Agent

 

 

BANC OF AMERICA SECURITIES LLC,

as

Sole Lead Arranger and Sole Book Manager

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE
  I DEFINITIONS AND ACCOUNTING TERMS

  	
  1

  
	
  1.01

  	
  Defined
  Terms

  	
  1

  
	
  1.02

  	
  Interpretive
  Provisions

  	
  20

  
	
  1.03

  	
  Accounting
  Terms and Provisions

  	
  20

  
	
  1.04

  	
  Rounding

  	
  21

  
	
  1.05

  	
  Times
  of Day

  	
  21

  
	
  ARTICLE
  II REVOLVING COMMITMENTS AND CREDIT EXTENSIONS

  	
  21

  
	
  2.01

  	
  Revolving
  Commitments

  	
  21

  
	
  2.02

  	
  Borrowings,
  Conversions and Continuations

  	
  21

  
	
  2.03

  	
  [Reserved

  	
  22

  
	
  2.04

  	
  [Reserved]

  	
  22

  
	
  2.05

  	
  Repayment
  of Loans

  	
  23

  
	
  2.06

  	
  Prepayments

  	
  23

  
	
  2.07

  	
  Termination
  or Reduction of Revolving Commitments

  	
  24

  
	
  2.08

  	
  Interest

  	
  24

  
	
  2.09

  	
  Fees

  	
  25

  
	
  2.10

  	
  Computation
  of Interest and Fees

  	
  25

  
	
  2.11

  	
  Payments
  Generally; Administrative Agent’s Clawback

  	
  25

  
	
  2.12

  	
  Sharing
  of Payments By Lenders

  	
  27

  
	
  2.13

  	
  Evidence
  of Debt

  	
  28

  
	
  2.14

  	
  Joint
  and Several Liability

  	
  28

  
	
  ARTICLE
  III TAXES, YIELD PROTECTION AND ILLEGALITY

  	
  29

  
	
  3.01

  	
  Taxes

  	
  29

  
	
  3.02

  	
  Illegality

  	
  32

  
	
  3.03

  	
  Inability
  to Determine Rates

  	
  32

  
	
  3.04

  	
  Increased
  Costs; Reserves on Eurodollar Rate Loans

  	
  32

  
	
  3.05

  	
  Compensation
  for Losses

  	
  34

  
	
  3.06

  	
  Mitigation
  Obligations; Replacement of Lenders

  	
  34

  
	
  3.07

  	
  Survival

  	
  34

  
	
  ARTICLE
  IV CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

  	
  35

  
	
  4.01

  	
  Conditions
  to Initial Credit Extensions

  	
  35

  
	
  4.02

  	
  Conditions
  to all Credit Extensions

  	
  37

  
	
  ARTICLE
  V REPRESENTATIONS AND WARRANTIES

  	
  38

  
	
  5.01

  	
  Organization;
  Powers

  	
  38

  
	
  5.02

  	
  Authorization;
  Enforceability

  	
  38

  
	
  5.03

  	
  Governmental
  Approvals; No Conflicts

  	
  38

  
	
  5.04

  	
  Financial
  Condition; No Material Adverse Change

  	
  38

  
	
  5.05

  	
  Properties

  	
  39

  
	
  5.06

  	
  Litigation
  and Environmental Matters

  	
  39

  
	
  5.07

  	
  Compliance
  with Laws and Agreements

  	
  39

  
	
  5.08

  	
  Use of
  Proceeds

  	
  40

  
	
  5.09

  	
  Taxes

  	
  40

  
	
  5.10

  	
  ERISA

  	
  40

  
	
  5.11

  	
  Disclosure

  	
  40

  

 

 

	
  5.12

  	
  Subsidiaries

  	
  40

  
	
  5.13

  	
  Insurance

  	
  40

  
	
  5.14

  	
  Labor
  Matters

  	
  40

  
	
  5.15

  	
  Solvency

  	
  41

  
	
  5.16

  	
  Margin
  Regulations; Investment Company Act

  	
  41

  
	
  5.17

  	
  Taxpayer
  Identification Number; Other Identifying Information

  	
  41

  
	
  ARTICLE
  VI AFFIRMATIVE COVENANTS

  	
  41

  
	
  6.01

  	
  Financial
  Statements and Other Information

  	
  41

  
	
  6.02

  	
  Notices
  of Material Events

  	
  42

  
	
  6.03

  	
  Information
  Regarding Loan Parties

  	
  43

  
	
  6.04

  	
  Existence;
  Conduct of Business

  	
  43

  
	
  6.05

  	
  Payment
  of Obligations

  	
  44

  
	
  6.06

  	
  Maintenance
  of Properties

  	
  44

  
	
  6.07

  	
  Insurance

  	
  44

  
	
  6.08

  	
  [Reserved]

  	
  44

  
	
  6.09

  	
  Books
  and Records; Inspection and Audit Rights

  	
  44

  
	
  6.10

  	
  Compliance
  with Laws

  	
  44

  
	
  6.11

  	
  Use of
  Proceeds

  	
  44

  
	
  6.12

  	
  Guarantee
  Requirement

  	
  44

  
	
  6.13

  	
  [Reserved]

  	
  45

  
	
  ARTICLE
  VII NEGATIVE COVENANTS

  	
  45

  
	
  7.01

  	
  Indebtedness;
  Certain Equity Securities

  	
  45

  
	
  7.02

  	
  Liens

  	
  46

  
	
  7.03

  	
  Fundamental
  Changes

  	
  47

  
	
  7.04

  	
  Investments,
  Loans, Advances, Guarantees and Acquisitions

  	
  48

  
	
  7.05

  	
  Asset
  Sales

  	
  49

  
	
  7.06

  	
  Sale
  and Leaseback Transactions

  	
  50

  
	
  7.07

  	
  Swap
  Agreements

  	
  50

  
	
  7.08

  	
  Restricted
  Payments; Certain Payments of Indebtedness

  	
  50

  
	
  7.09

  	
  Transactions
  with Affiliates

  	
  51

  
	
  7.10

  	
  Restrictive
  Agreements

  	
  51

  
	
  7.11

  	
  Amendment
  of Material Documents

  	
  51

  
	
  7.12

  	
  Financial
  Covenants

  	
  52

  
	
  ARTICLE
  VIII EVENTS OF DEFAULT AND REMEDIES

  	
  52

  
	
  8.01

  	
  Events
  of Default

  	
  52

  
	
  8.02

  	
  Application
  of Funds

  	
  54

  
	
  ARTICLE
  IX ADMINISTRATIVE AGENT

  	
  55

  
	
  9.01

  	
  Appointment
  and Authorization of Administrative Agent

  	
  55

  
	
  9.02

  	
  Rights
  as a Lender

  	
  55

  
	
  9.03

  	
  Exculpatory
  Provisions

  	
  56

  
	
  9.04

  	
  Reliance
  by Administrative Agent

  	
  56

  
	
  9.05

  	
  Delegation
  of Duties

  	
  57

  
	
  9.06

  	
  Resignation
  of the Administrative Agent

  	
  57

  
	
  9.07

  	
  Non-Reliance
  on Administrative Agent and Other Lenders

  	
  57

  
	
  9.08

  	
  No
  Other Duties

  	
  58

  
	
  9.09

  	
  Administrative
  Agent May File Proofs of Claim

  	
  58

  

 

 

	
  9.10

  	
  Guaranty
  Matters

  	
  58

  
	
  ARTICLE
  X MISCELLANEOUS

  	
  59

  
	
  10.01

  	
  Amendments,
  Etc

  	
  59

  
	
  10.02

  	
  Notices;
  Effectiveness; Electronic Communication

  	
  60

  
	
  10.03

  	
  No
  Waiver; Cumulative Remedies; Enforcement

  	
  62

  
	
  10.04

  	
  Expenses;
  Indemnity; Damage Waiver

  	
  63

  
	
  10.05

  	
  Payments
  Set Aside

  	
  64

  
	
  10.06

  	
  Successors
  and Assigns

  	
  65

  
	
  10.07

  	
  Treatment
  of Certain Information; Confidentiality

  	
  67

  
	
  10.08

  	
  Right
  of Setoff

  	
  68

  
	
  10.09

  	
  Interest
  Rate Limitation

  	
  68

  
	
  10.10

  	
  Counterparts;
  Integration; Effectiveness

  	
  69

  
	
  10.11

  	
  Survival
  of Representations and Warranties

  	
  69

  
	
  10.12

  	
  Severability

  	
  69

  
	
  10.13

  	
  Replacement
  of Lenders

  	
  69

  
	
  10.14

  	
  Governing
  Law; Jurisdiction; Etc

  	
  70

  
	
  10.15

  	
  Waiver
  of Jury Trial

  	
  71

  
	
  10.16

  	
  No
  Advisory or Fiduciary Responsibility

  	
  71

  
	
  10.17

  	
  Electronic
  Execution of Assignments and Certain Other Documents

  	
  72

  
	
  10.18

  	
  USA
  PATRIOT Act

  	
  72

  

 

 

SCHEDULES

 

	
  Schedule
  1.01

  	
   

  	
  Acquired
  EBITDA

  
	
  Schedule
  2.01

  	
   

  	
  Lenders
  and Revolving Commitments

  
	
  Schedule
  5.05

  	
   

  	
  Real
  Property

  
	
  Schedule
  5.12

  	
   

  	
  Subsidiaries

  
	
  Schedule
  5.13

  	
   

  	
  Insurance

  
	
  Schedule
  5.17

  	
   

  	
  Taxpayer
  Identification Numbers

  
	
  Schedule
  7.01

  	
   

  	
  Existing
  Indebtedness

  
	
  Schedule
  7.02

  	
   

  	
  Existing
  Liens

  
	
  Schedule
  7.04

  	
   

  	
  Existing
  Investments

  
	
  Schedule
  7.10

  	
   

  	
  Restrictive
  Agreements

  
	
  Schedule
  10.02

  	
   

  	
  Notice
  Addresses

  

 

EXHIBITS

 

	
  Exhibit 2.02

  	
   

  	
  Form of
  Loan Notice

  
	
  Exhibit 2.13

  	
   

  	
  Form of
  Revolving Note

  
	
  Exhibit 6.01(c)

  	
   

  	
  Form of
  Compliance Certificate

  
	
  Exhibit 10.06

  	
   

  	
  Form of
  Assignment and Assumption

  

 

 

SENIOR UNSECURED CREDIT AGREEMENT

 

This
SENIOR UNSECURED CREDIT AGREEMENT (this “Credit Agreement”) is entered into as
of April 1, 2008, among MAC-GRAY CORPORATION, a Delaware corporation (the “Parent
Borrower”), MAC-GRAY SERVICES, INC., a Delaware corporation (“MGS”),
and INTIRION CORPORATION, a Delaware corporation (“Intirion”; together
with the Parent Borrower and MGS, each a “Borrower” and collectively the
“Borrowers”), the Lenders party hereto, and BANK OF AMERICA, N.A., as
Administrative Agent.

 

W  I  T
N  E  S  S  E  T  H

 

WHEREAS,
the Borrowers have requested that the Lenders provide a 364-day revolving
credit facility for the purposes set forth herein; and

 

WHEREAS,
the Lenders have agreed to make the requested 364-day revolving credit facility
available on the terms and conditions set forth herein;

 

NOW,
THEREFORE, in consideration of these premises and the mutual covenants and
agreements contained herein, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto covenant and agree as follows:

 

ARTICLE I

 

DEFINITIONS AND ACCOUNTING TERMS

 

1.01        Defined
Terms.

 

As
used in this Credit Agreement, the following terms have the meanings provided
below:

 

“Administrative
Agent” means Bank of America in its capacity as administrative agent for
the Lenders under any of the Loan Documents, or any successor administrative
agent pursuant to the terms hereof.

 

“Administrative
Agent’s Office” means the Administrative Agent’s address and, as
appropriate, account as set forth on Schedule 10.02, or such other address or
account as the Administrative Agent may from time to time notify the Parent
Borrower and the Lenders.

 

“Administrative
Questionnaire” means an administrative questionnaire for the Lenders in a
form supplied by the Administrative Agent.

 

“Affiliate”
means, with respect to any 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.

 

“Agent
Parties” has the meaning provided in Section 10.02(c).

 

“Aggregate
Revolving Commitments” means the aggregate principal amount of the
Revolving Commitments of all the Lenders.

 

 

“Aggregate
Revolving Committed Amount” has the meaning provided in Section 2.01.

 

“Applicable
Percentage” means (a) five percent (5%) per annum, in the case of
Eurodollar Rate Loans, and (b) four percent (4%) per annum, in the case of
Base Rate Loans.

 

“Approved
Fund” means any Fund that is administered or managed 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.

 

“Arranger”
means BAS, in its capacity as sole lead arranger and sole book manager.

 

“Assignee
Group” means two (2) or more Eligible Assignees that are Affiliates of
one another or two (2) or more Approved Funds managed by the same
investment advisor.

 

“Assignment
and Assumption” means an assignment and assumption entered into by a Lender
and an assignee (with the consent of any party whose consent is required by Section 10.06(b))
and accepted by the Administrative Agent, in substantially the form of Exhibit 10.06
or any other form approved by the Administrative Agent.

 

“Attributed
Principal Amount” means (a) in the case of capital leases, the amount
of Capital Lease Obligations determined in accordance with GAAP, (b) in
the case of Synthetic Leases, an amount determined by capitalization of the
remaining lease payments thereunder as if it were a capital lease determined in
accordance with GAAP and (c) in the case of Securitization Transactions,
the outstanding principal amount of such financing, after taking into account
appropriate reserve amounts.

 

“Automatic
Laundry” means Automatic Laundry Companies, Ltd., a Texas limited
partnership.

 

“Automatic
Laundry Acquisition” means the acquisition of all or substantially all of
the Equity Interests of Automatic Laundry by the Parent Borrower or its
Affiliates pursuant to the terms and conditions of the Automatic Laundry
Acquisition Agreement.

 

“Automatic
Laundry Acquisition Agreement” means that certain Partnership Interest
Purchase Agreement, entered into as of April 1, 2008, by and among the
Parent Borrower, Automatic Laundry and the partners party thereto.

 

“Bank
of America” means Bank of America, N.A., together with its successors.

 

“BAS”
means Banc of America Securities LLC, together with its successors.

 

“Base
Rate” means for any day a fluctuating rate per annum equal to the higher of
(a) the Federal Funds Rate plus 1/2 of 1% and (b) the rate of
interest in effect for such day as publicly announced from time to time by Bank
of America as its “prime rate”.  The “prime
rate” is a rate set by Bank of America based upon various factors including
Bank of America’s costs and desired return, general economic conditions and
other factors, and is used as a reference point for pricing some loans, which
may be priced at, above, or below such announced rate.  Any change in the prime rate announced by
Bank of America shall take effect at the opening of business on the day
specified in the public announcement of such change.

 

“Base
Rate Loan” means a Loan that bears interest based on the Base Rate.

 

“Borrower”
and “Borrowers” have the meaning provided in the recitals hereto,
together with their successors and permitted assigns.

 

2

 

“Borrowing”
means a borrowing consisting of simultaneous Loans of the same Type and, in the
case of Eurodollar Rate Loans, having the same Interest Period.

 

“Business
Day” means any day other than a Saturday, Sunday or other day on which
commercial banks are authorized to close under the Laws of, or are in fact
closed in, the state where the Administrative Agent’s Office is located and, if
such day relates to any Eurodollar Rate Loan, means any such day on which
dealings in Dollar deposits are conducted by and between banks in the London
interbank eurodollar market.

 

“Capital
Expenditures” means, for any period for the Consolidated Group, without
duplication, (a) the additions to property, plant and equipment and other
capital expenditures that are (or would be) set forth in a consolidated
statement of cash flows for such period prepared in accordance with GAAP and (b) Capital
Lease Obligations incurred by the Consolidated Group during such period;
provided that for purposes hereof, Capital Expenditures shall not include
expenditures to the extent they are (i) financed with the proceeds of any
sale, transfer or other disposition (including pursuant to a sale and leaseback
transaction) or any casualty or other insured damage to or any taking under
power of eminent domain or by condemnation or similar proceeding of, any
property or asset or (ii) expenditures or investments that constitute
Permitted Acquisitions.  Except as
otherwise expressly provided, the applicable period shall be the period of four
consecutive fiscal quarters ending as of the date of determination.

 

“Capital
Lease Obligations” of any Person means the obligations of such Person to
pay rent or other amounts under any lease of (or other arrangement conveying
the right to use) real or personal property, or a combination thereof, which
obligations are required to be classified and accounted for as capital leases
on a balance sheet of such Person under GAAP, and the amount of such
obligations shall be the capitalized amount thereof determined in accordance
with GAAP.

 

“Cash
Equivalents” means (a) securities issued or directly and fully
guaranteed or insured by the United States or any agency or instrumentality
thereof (provided that the full faith and credit of the United States is
pledged in support thereof) having maturities of not more than twelve months
from the date of acquisition, (b) Dollar-denominated time deposits and
certificates of deposit of (i) any Lender, (ii) any domestic
commercial bank of recognized standing having capital and surplus in excess of
$500,000,000 or (iii) 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 (each an “Approved Bank”), in each
case with maturities of not more than 270 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 (6) months of the date of acquisition, (d) repurchase
agreements entered into by any Person with a bank or trust company (including
any of the Lenders) or 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 in which such Person shall have a perfected first priority
security interest (subject to no other Liens) and having, on the date of
purchase thereof, a fair market value of at least 100% of the amount of the
repurchase obligations and (e) investments (classified in accordance with
GAAP as current assets) in money market investment programs registered under
the Investment Company Act of 1940, as amended, that are administered by
reputable financial institutions having capital of at least $500,000,000 and
the portfolios of which are limited to Investments of the character described
in the foregoing subclauses hereof.

 

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

 

3

 

Governmental
Authority or (c) the making or issuance of any request, guideline or
directive (whether or not having the force of law) by any Governmental
Authority.

 

“Change
in Control” means (a) the acquisition of ownership, directly or
indirectly, beneficially or of record, by any Person or group (within the
meaning of the Securities Exchange Act of 1934 and the rules of the SEC
thereunder as in effect on the date hereof) other than Stewart G. MacDonald, Jr.,
Sandra MacDonald, Daniel MacDonald or Evelyn MacDonald or any of their
respective spouses or immediate family members or trusts or family limited
partnerships for their benefit, of Equity Interests representing more than 25%
of either the aggregate ordinary voting power or the aggregate equity value
represented by the issued and outstanding Equity Interests in the Parent
Borrower, (b) occupation of a majority of the seats (other than vacant
seats) on the board of directors of the Parent Borrower by Persons who were
neither (i) nominated by the board of directors of the Parent Borrower (or
any committee thereof) nor (ii) appointed by directors so nominated or (c) the
occurrence of a “Change of Control”, as defined in any Senior Notes Document.

 

“Closing
Date” means the date hereof.

 

“Code”
means the Internal Revenue Code of 1986.

 

“Commitment
Period” means the period from and including the Closing Date to the earlier
of the Revolving Termination Date or the date on which the Revolving
Commitments shall have been terminated as provided herein.

 

“Compliance
Certificate” means a certificate substantially in the form of Exhibit 6.01(c).

 

“Consolidated
Cash Flow” means, for any period for the Consolidated Group, the difference
of (a) Consolidated EBITDA minus (b) the sum of (i) Capital
Expenditures (other than Capital Lease Obligations of up to an aggregate amount
of $4,000,000 incurred in any such period), (ii) Prepaid Commission
Expenses, (iii) consolidated cash income taxes paid and (iv) Restricted
Payments paid, in each case on a consolidated basis in accordance with
GAAP.  Except as otherwise expressly
provided, the applicable period shall be the period of four consecutive fiscal
quarters ending as of the date of determination.

 

“Consolidated
Cash Flow Coverage Ratio” means, for any period for the Consolidated Group,
the ratio of (a) Consolidated Cash Flow to (b) the sum of (i)(A) the
aggregate amount of scheduled principal payments made on or in respect of
Long-Term Indebtedness (other than payment made by the Parent Borrower or any
Subsidiary to the Parent Borrower or a Subsidiary and excluding for purposes
hereof, the principal amount of the Seller Subordinated Note) and (B) the
aggregate amount of principal payments (other than scheduled principal payments)
made during such period in respect of Long-Term Indebtedness (excluding for
purposes hereof, the principal amount of the Seller Subordinated Note) of the
Parent Borrower and the Subsidiaries, to the extent that such payments reduced
any scheduled principal payments that would have become due within one year
after the date of the applicable payment and (ii) Consolidated Cash
Interest Expense.  Except as otherwise
expressly provided, the applicable period shall be the period of four
consecutive fiscal quarters ending as of the date of determination.

 

“Consolidated
Cash Interest Expense” means, for any period the Consolidated Interest
Expense for such period, excluding any amount not payable in cash.

 

“Consolidated
EBITDA” means, for any period for the Consolidated Group, the sum of (a) Consolidated
Net Income plus (b) to the extent deducted in determining such
Consolidated Net Income, without duplication, the sum of (i) Consolidated
Interest Expense, (ii) consolidated income tax expense,

 

4

 

(iii) depreciation
and amortization, (iv) any extraordinary non-cash charges reasonably
acceptable to the Administrative Agent and the Required Lenders, (v) non-cash
impairment charges for discontinued or divested operations, (vi) non-cash
compensation expenses (but excluding, for purposes hereof, any such non-cash
charges as for which there will be a subsequent cash payment), and (vii) non-cash
expenses resulting from the grant of stock options or other equity-related compensation
to any director, officer, consultant or employee, in each case on a
consolidated basis determined in accordance with GAAP; provided that (A) for
acquisitions made within the period of four consecutive fiscal quarters ending December 31,
2007, there shall be included in “Consolidated EBITDA” the amounts set forth on
Schedule 1.01 as adjustments to Consolidated EBITDA and (B) for
acquisitions made after the Closing Date adjustments may be made to
Consolidated EBITDA for expected cost-savings, synergies and one-time costs and
expenses relating to the acquisitions (including employee retention expenses
and severance expenses) reasonably acceptable to the Administrative Agent and
the Required Lenders.  Except as otherwise
expressly provided, the applicable period shall be the period of four
consecutive fiscal quarters ending as of the date of determination.

 

“Consolidated
Group” means the Parent Borrower and the Subsidiaries determined on a
consolidated basis in accordance with GAAP.

 

“Consolidated
Interest Expense” means, for any period for the Consolidated Group, all
interest expense on a consolidated basis determined in accordance with GAAP,
but including, in any event, the interest component under capital leases and
the implied interest component under Synthetic Leases and Securitization
Transactions.

 

“Consolidated
Net Income” means, for any period for the Consolidated Group, the net
income (or loss) determined on a consolidated basis in accordance with GAAP,
but excluding extraordinary gains and losses and related tax effects
thereon.  Except as otherwise expressly
provided, the applicable period shall be the period of four consecutive fiscal
quarters ending as of the date of determination.

 

“Consolidated
Senior Secured Funded Debt” means the portion of Consolidated Total Funded
Debt that (a) is secured by Liens on the property of the Consolidated
Group, and (b) is not subordinated to the Loans and Obligations under this
Credit Agreement in right and time of payment on terms reasonably acceptable to
the Administrative Agent.

 

“Consolidated
Senior Secured Leverage Ratio” means, on any date, the ratio of (a) Consolidated
Senior Secured Funded Debt as of such date to (b) Consolidated EBITDA for
the period of four consecutive fiscal quarters ended on such date (or, if such
date is not the last day of a fiscal quarter, ended on the last day of the
fiscal quarter most recently ended prior to such date).

 

“Consolidated
Total Funded Debt” means, as of any date, all Funded Debt of the Parent
Company and its subsidiaries determined on a consolidated basis in accordance
with GAAP.

 

“Consolidated
Total Leverage Ratio” means, as of the end of each fiscal quarter, the
ratio of (a) Consolidated Total Funded Debt as of such date to (b) Consolidated
EBITDA for the period of four consecutive fiscal quarters ended on such date
(or, if such date is not the last day of a fiscal quarter, ended on the last
day of the fiscal quarter most recently ended prior to such date).

 

“Control”
means 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.

 

5

 

“Credit
Agreement” has the meaning provided in the recitals hereto, as the same may
be amended and modified from time to time.

 

“Credit
Extension” means each of the following: (a) a Borrowing and (b) the
conversion or continuation of a Borrowing.

 

“Debt
Transaction” means, with respect to any member of the Consolidated Group,
any sale, issuance, placement, assumption or guaranty of Funded Debt, whether
or not evidenced by a promissory note or other written evidence of Indebtedness,
except for Funded Debt permitted to be incurred pursuant to Section 7.01(a).

 

“Debtor
Relief Laws” means the Bankruptcy Code of the United States, and all other
liquidation, conservatorship, bankruptcy, assignment for the benefit of
creditors, moratorium, rearrangement, receivership, insolvency, reorganization,
or similar debtor relief Laws of the United States or other applicable
jurisdictions from time to time in effect and affecting the rights of creditors
generally.

 

“Default”
means any event, act or condition that constitutes an Event of Default or that,
with notice, the passage of time, or both, would constitute an Event of
Default.

 

“Default
Rate” means an interest rate equal to (a) with respect to Obligations
other than Eurodollar Rate Loans, the Base Rate plus the Applicable
Percentage, if any, applicable to such Loans plus 2% per annum; and (b) with
respect to Eurodollar Rate Loans, the Eurodollar Rate plus the Applicable
Percentage, if any, applicable to such Loans plus 2% per annum.

 

“Defaulting
Lender” means any Lender that (a) has failed to fund any portion of
the Loans required to be funded by it hereunder within one (1) Business
Day of the date required to be funded by it hereunder and has not cured such
failure prior to the date of determination, (b) has otherwise failed to
pay over to the Administrative Agent or any other Lender any other amount
required to be paid by it hereunder within one (1) Business Day of the
date when due, unless the subject of a good faith dispute, and has not cured
such failure prior to the date of determination, or (c) has been deemed
insolvent or become the subject of a bankruptcy or insolvency proceeding.

 

“Disposition”
or “Dispose” means the sale, transfer, license, lease or other
disposition (including any Sale and Leaseback Transaction) of any Property by
any Person, including any sale, assignment, transfer or other disposal, with or
without recourse, of any notes or accounts receivable or any rights and claims
associated therewith, but excluding, for purposes hereof, (a) Dispositions
of obsolete or worn out property, whether now owned or hereafter acquired, in
the ordinary course of business; (b) Dispositions of inventory in the
ordinary course of business; and (c) Dispositions of equipment or real
property to the extent that (i) such property is exchanged for credit
against the purchase price of similar replacement property or (ii) the
proceeds of such Disposition are reasonably promptly applied to the purchase
price of such replacement property.

 

“Dollar”
or “$” means the lawful currency of the United States.

 

“Domestic
Subsidiary” means any Subsidiary that is organized under the laws of any
State of the United States or the District of Columbia.

 

“Eligible
Assignee” means any Person that meets the requirements to be an assignee
under Section 10.06(b)(iii), (v) and (vi) (subject
to such consents, if any, as may be required under Section 10.06(b)(iii)).

 

6

 

“Environmental
Laws” means any and all federal, state, local, and foreign statutes, laws,
regulations, ordinances, rules, judgments, orders, decrees, permits,
concessions, grants, franchises, licenses, agreements or governmental
restrictions relating to pollution and the protection of the environment or the
release of any materials into the environment, including those related to
hazardous substances or wastes, air emissions and discharges to waste or public
systems.

 

“Environmental
Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or
indemnities), of any Borrower or any other Loan Party or any of their
respective Subsidiaries directly or indirectly resulting from or based upon (a) violation
of any Environmental Law, (b) the generation, use, handling,
transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure
to any Hazardous Materials, (d) the release or threatened release of any
Hazardous Materials into the environment or (e) any contract, agreement or
other consensual arrangement pursuant to which liability is assumed or imposed
with respect to any of the foregoing.

 

“Equity
Interests” means shares of capital stock, partnership interests, membership
interests in a limited liability company, beneficial interests in a trust or
other equity ownership interests in a Person.

 

“Equity
Transaction” means, with respect to any member of the Consolidated Group,
any issuance or sale of shares of its Equity Interests, other than an issuance (a) to
a member of the Consolidated Group, (b) in connection with a conversion of
debt securities to equity, (c) in connection with the exercise by a
present or former employee, consultant, officer or director under a stock
incentive plan, stock option plan or other equity-based compensation plan or
arrangement, or (d) in connection with any Permitted Acquisition
hereunder.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974.

 

“ERISA
Affiliate” means any trade or business (whether or not incorporated) under
common control with any Borrower within the meaning of Section 414(b) or
(c) of the Code (and Sections 414(m) and (o) of the Code for
purposes of provisions relating to Section 412 of the Code).

 

“ERISA
Event” means (a) a Reportable Event with respect to a Pension Plan; (b) a
withdrawal by any Borrower or any ERISA Affiliate from a Pension Plan subject
to Section 4063 of ERISA during a plan year in which it was a substantial
employer (as defined in Section 4001(a)(2) of ERISA) or a cessation
of operations that is treated as such a withdrawal under Section 4062(e) of
ERISA; (c) a complete or partial withdrawal by any Borrower or any ERISA
Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan
is in reorganization; (d) the filing of a notice of intent to terminate,
the treatment of a Plan amendment as a termination under Section 4041 or
4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a
Pension Plan or Multiemployer Plan; (e) an event or condition that would
reasonably be expected to constitute grounds under Section 4042 of ERISA
for the termination of, or the appointment of a trustee to administer, any
Pension Plan or Multiemployer Plan; or (f) the imposition of any liability
under Title IV of ERISA, other than for PBGC premiums due but not delinquent
under Section 4007 of ERISA, upon any Borrower or any ERISA Affiliate.

 

“Eurodollar
Base Rate” has the meaning specified in the definition of Eurodollar Rate.

 

“Eurodollar
Rate” means for any Interest Period with respect to a Eurodollar Rate Loan,
a rate per annum determined by the Administrative Agent pursuant to the
following formula:

 

	
  Eurodollar Rate =

  	
   

  	
  Eurodollar Base Rate

  
	
   

  	
   

  	
  1.00 - Eurodollar Reserve Percentage

  

 

7

 

Where,

 

“Eurodollar
Base Rate” means, for such Interest Period, the rate per annum equal to the
British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by
Reuters (or other commercially available source providing quotations of BBA
LIBOR as designated by the Administrative Agent from time to time) at
approximately 11:00 a.m., London time, two (2) Business Days prior to
the commencement of such Interest Period, for Dollar deposits (for delivery on
the first day of such Interest Period) with a term equivalent to such Interest
Period.  If such rate is not available at
such time for any reason, then the “Eurodollar Base Rate” for such Interest
Period shall be the rate per annum determined by the Administrative Agent to be
the rate at which deposits in Dollars for delivery on the first day of such
Interest Period in same day funds in the approximate amount of the Eurodollar
Rate Loan being made, continued or converted by Bank of America and with a term
equivalent to such Interest Period would be offered by Bank of America’s London
Branch to major banks in the London interbank eurodollar market at their
request at approximately 11:00 a.m. (London time) two (2) Business
Days prior to the commencement of such Interest Period.

 

“Eurodollar
Reserve Percentage” means, for any day during any Interest Period, the
reserve percentage (expressed as a decimal, carried out to five (5) decimal
places) in effect on such day, whether or not applicable to any Lender, under
regulations issued from time to time by the FRB for determining the maximum
reserve requirement (including any emergency, supplemental or other marginal
reserve requirement) with respect to Eurocurrency funding (currently referred
to as “Eurocurrency liabilities”).  The
Eurodollar Rate for each outstanding Eurodollar Rate Loan shall be adjusted
automatically as of the effective date of any change in the Eurodollar Reserve
Percentage.

 

“Eurodollar
Rate Loan” means a Loan that bears interest at a rate based on the
Eurodollar Rate.

 

“Event
of Default” has the meaning provided in Section 8.01.

 

“Excluded
Taxes” means, with respect to any Person, (a) taxes imposed on or
measured by such Person’s overall net income (however denominated), and franchise
taxes imposed in lieu of income taxes, by the jurisdiction (or any political
subdivision thereof) under the Laws of which such Person 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 or in which it is otherwise deemed to
be engaged in a trade or business for income tax purposes other than as a
result of its having entered into, performed its obligations under or enforced
its rights with respect to this Credit Agreement or any other Loan Document, (b) any
branch profits taxes imposed by the United States or any similar tax imposed by
any other jurisdiction in which any Borrower is located, (c) any backup
withholding tax that is required by the Code to be withheld from amounts
payable to a Lender that has failed to comply with clause (A) of Section 3.01(e)(ii),
(d) in the case of a Foreign Lender (other than an assignee pursuant to a
request by a Borrower under Section 10.13), any withholding tax that (i) is
required to be imposed on amounts payable to such Foreign Lender pursuant to
the Laws in force at the time such Foreign Lender becomes a party hereto (or
designates a new Lending Office) or (ii) is attributable to such Foreign
Lender’s failure or inability (other than as a result of a Change in Law) to
comply with clause (B) of Section 3.01(e)(ii), 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 such Borrower with respect to such withholding tax pursuant to Section 3.01(a)(ii) or
(iii) and (e) interest, additions to tax or penalties
applicable to taxes described in clauses (a), (b), (c) or (d) of this
definition.

 

“Federal
Funds Rate” means, for any day, the rate per annum equal to the weighted
average of the rates on overnight federal funds transactions with members of
the Federal Reserve System arranged by 

 

8

 

federal
funds brokers on such day, as published by the Federal Reserve Bank of New York
on the Business Day immediately succeeding such day; provided that (a) if
such day is not a Business Day, the Federal Funds Rate for such day shall be
such rate on such transactions on the next preceding Business Day as so
published on the next succeeding Business Day, and (b) if no such rate is
so published on such next succeeding Business Day, the Federal Funds Rate for
such day shall be the average rate (rounded upward, if necessary, to the
multiple of 1/100th of 1%) charged to Bank of America on such day on
such transactions as determined by the Administrative Agent.

 

“Fee
Letter” means the letter agreement, dated as of February 28, 2008,
among the Parent Borrower, Bank of America, and the Arranger.

 

“Financial
Officer” means the chief financial officer, principal accounting officer,
treasurer or controller of the Parent Borrower.

 

“Foreign
Lender” means any Lender that is not organized under the Laws of the United
States or any State thereof or the District of Columbia.

 

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

 

“FRB”
means the Board of Governors of the Federal Reserve System of the United
States.

 

“Fund”
means 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 activities.

 

“Funded
Debt” of any Person means, without duplication, (a) all obligations of
such Person for borrowed money or with respect to deposits or advances of any
kind, (b) all obligations of such Person evidenced by bonds, debentures,
notes or similar instruments, (c) all obligations of such Person upon
which interest charges are customarily paid, (d) all obligations of such
Person under conditional sale or other title retention agreements relating to
property acquired by such Person, (e) all obligations of such Person in
respect of the deferred purchase price of property or services (excluding trade
accounts payable incurred in the ordinary course of business), (f) all
Indebtedness of the type described in clauses  (a), (b), (c),
(d), (e), (g), (h), (i) and (j) of
this definition of others secured by (or for which the  holder of such obligations has an existing
right, contingent or otherwise, to be secured by) any Lien on the property
owned or acquired by such Person, whether or not the obligations secured
thereby have been assured, (g) all Guarantees by such Person of
obligations of others, (h) the Attributed Principal Amount of all Capital
Lease Obligations, Synthetic Leases and Securitization Transactions of such
Person, (i) all obligations, contingent or otherwise, of such Person as an
account party in respect of letters of credit and letters of guaranty and (j) all
obligations, contingent or otherwise, of such Person in respect of bankers’
acceptances.  The Indebtedness of any
Person shall include the Indebtedness of any other entity (including any
partnership in which such Person is a general partner) to the extent such
Person is liable therefor as a result of such Person’s ownership interest in or
other relationship with such entity, except to the extent the terms of such
Indebtedness provide that such Person is not liable therefor.  Notwithstanding the foregoing, in connection
with any Permitted Acquisition, the term “Indebtedness” shall not include
post-closing purchase price adjustments or earn-outs to which the seller may
become entitled.

 

“GAAP”
means generally accepted accounting principles in effect in the United States
applied on a consistent basis, subject to the provisions of Section 1.03.

 

“Governmental
Authority” means the government of the United States or any other nation,
or of any political subdivision thereof, whether state or local, and any
agency, authority, instrumentality, 

 

9

 

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).

 

“Guarantee”
of or by any Person (the “guarantor” means any obligation, contingent or
otherwise, of the guarantor guaranteeing or having the economic effect of
guaranteeing any Indebtedness or other obligation of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly, and including any
obligation of the guarantor, direct or indirect, (a) to purchase or pay
(or advance of supply funds for the purchase or payment of) such Indebtedness
or other obligation or to purchase (or to advance or supply funds of the
purchase of) any security for the payment thereof, (b) to purchase or
lease property, securities or services for the purpose of assuring the owner of
such Indebtedness or other obligation of the payment thereof, (c) to
maintain working capital, equity capital or liquidity of the primary obligor so
as to enable the primary obligor to pay such Indebtedness or other obligation
or (d) as an account party in respect of any letter of credit or letter of
guaranty issued to support such Indebtedness or obligation; provided, that the
term Guarantee shall not include endorsements for collection or deposit in the
ordinary course of business.

 

“Guarantee
Agreement” means that certain Guarantee Agreement, including all schedules
and exhibits thereto, dated as of the Closing Date among the Parent Borrower,
the Subsidiaries identified therein and the Administrative Agent, as may be
amended, modified, extended, supplemented and replaced from time to time.

 

“Guarantee
Requirement” means the requirement that the Administrative Agent shall have
received from the Parent Borrower and each of its Domestic Subsidiaries either (a) a
duly executed and delivered counterpart of the Guarantee Agreement, or (b) in
the case of an Person that becomes a Loan Party after the Closing Date, a duly
executed and delivered supplement to the Guarantee Agreement, in the form
specified therein (or otherwise acceptable to the Administrative Agent in its
discretion);

 

“Guarantors”
means, collectively, each Person that provides a Guarantee of the Obligations
pursuant to the terms of the Guarantee Agreement or other agreement reasonably
acceptable to the Administrative Agent, in each case together with their
successors and permitted assigns.

 

“Hazardous
Materials” means all explosive or radioactive substances or wastes and all
hazardous or toxic substances, wastes or other pollutants, including petroleum
or petroleum distillates, asbestos or asbestos containing materials,
polychlorinated biphenyls, radon gas, infectious or medical wastes and all
other substances or wastes of any nature regulated pursuant to any
Environmental Law.

 

“Indebtedness”
of any Person means, without duplication, (a) all Funded Debt of such
Person, and (b) all obligations of such Person under Swap Agreements, or
obligations of others under Swap Agreements that are Guaranteed by such Person
or secured by (or for which the  holder
of such obligations has an existing right, contingent or otherwise, to be
secured by) any Lien on the property owned or acquired by such Person, whether
or not the obligations secured thereby have been assured.

 

“Indemnified
Taxes” means Taxes other than Excluded Taxes.

 

“Indemnitees”
has the meaning provided in Section 10.04(b).

 

“Information”
has the meaning specified in Section 10.07.

 

“Interest
Payment Date” means, (a) as to any Base Rate Loan, the last Business
Day of each March, June, September and December and the Revolving
Termination Date, and (b) as to any Eurodollar 

 

10

 

Rate
Loan, the last Business Day of each Interest Period for such Loan, the date of
repayment of principal of such Loan and the Revolving Termination Date, and in
addition, where the applicable Interest Period exceeds three months, the date
every three months after the beginning of such Interest Period.  If an Interest Payment Date falls on a date
that is not a Business Day, such Interest Payment Date shall be deemed to be
the immediately succeeding Business Day.

 

“Interest
Period” means, as to each Eurodollar Rate Loan, the period commencing on
the date such Eurodollar Rate Loan is disbursed or converted to or continued as
a Eurodollar Rate Loan and ending on the date one (1), two (2), three (3) or
six (6) months thereafter, as selected by the applicable Borrower in its
Loan Notice; provided that:

 

(a)           any Interest Period that would otherwise end on a day that
is not a Business Day shall be extended to the immediately succeeding Business
Day unless such Business Day falls in another calendar month, in which case
such Interest Period shall end on the immediately preceding Business Day;

 

(b)           any Interest Period 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 calendar month at the end of such
Interest Period; and

 

(c)           no Interest Period with respect to any Revolving Loan
shall extend beyond the Revolving Termination Date.

 

“Intirion”
has the meaning provided in the recitals hereto, together with its permitted
successors and assigns.

 

“IRS”
means the United States Internal Revenue Service.

 

“Laundry
Facility Agreements” means agreements and other documents pursuant to which
any of the Borrowers installs, operates and maintains certain pay per use
laundry equipment or rents such equipment to an owner, manager or any other
Person affiliated with the premises at which such equipment is located.

 

“Laws”
means, collectively, all international, foreign, federal, state and local
statutes, treaties, rules, guidelines, regulations, ordinances, codes and
administrative or judicial precedents or authorities, including the
interpretation or administration thereof by any Governmental Authority charged
with the enforcement, interpretation or administration thereof, and all
applicable administrative orders, directed duties, licenses, authorizations and
permits of, and agreements with, any Governmental Authority.

 

“Lender”
means each of the Persons identified as a “Lender” on the signature pages hereto
and each Person who joins as a Lender pursuant to the terms hereof, together
with their respective successors and assigns.

 

“Lending
Office” means, as to any Lender, the office or offices of such Lender set
forth in such Lender’s Administrative Questionnaire or such other office or
offices as a Lender may from time to time notify the Parent Borrower and the
Administrative Agent.

 

“Lien”
means, with respect to any asset, (a) any mortgage, deed of trust, lien,
pledge, hypothecation, encumbrance, charge or security interest in, on or of
such asset, (b) the interest of a vendor or a lessor under any conditional
sale agreement, capital lease or title retention agreement (or any 

 

11

 

financing
lease having substantially the same economic effect as any of the foregoing)
relating to such asset and (c) in the case of securities, any purchase
option, call or similar right of a third party with respect to such securities.

 

“Loan”
means any Revolving Loan, and the Base Rate Loans and Eurodollar Rate Loans
comprising such Loans.

 

“Loan
Documents” means this Credit Agreement, the Guarantee Agreement, the
Revolving Notes and the Fee Letter, if any.

 

“Loan
Notice” means a notice of (a) a Borrowing of Loans, (b) a
conversion of Loans from one Type to the other, or (c) a continuation of
Eurodollar Rate Loans, which, if in writing, shall be substantially in the form
of Exhibit 2.02.

 

“Loan
Parties” means, collectively, the Borrowers and the Guarantors.

 

“Loan
Party Materials” has the meaning specified in Section 6.02.

 

“Long-Term
Indebtedness” means any indebtedness that, in accordance with GAAP,
constitutes (or, when incurred constituted) a long-term liability.

 

“Material
Adverse Effect” means (a) a material adverse change in, or a material
adverse effect upon, the operations, business, assets, properties, condition
(financial or otherwise) or prospects of the Consolidated Group taken as a
whole; or (b) a material impairment of the ability of any Loan Party to
perform its obligations under any Loan Document to which it is a party.

 

“Material
Acquisition” means (a) any acquisition by the Parent Borrower or a
wholly-owned Subsidiary that is a Loan Party of all the outstanding Equity
Interest in, all or substantially all the assets of, or all or substantially
all the assets constituting a division or line of business of, a Person if (i) the
cash consideration for such acquisition is at least $5,000,000 (ii) the
total consideration for such acquisition is at least $10,000,000 or (iii) the
acquired business contributes, together with all other Permitted Acquisitions
that have occurred since the beginning of the immediately preceding four
consecutive fiscal quarter period for which financial statements are available,
in the aggregate at least $1,000,000 to Consolidated EBITDA for such period
(giving pro forma effect to all such acquisitions as if they had occurred on
the first day of such four consecutive fiscal quarter period) and (b) the
other preceding Permitted Acquisitions described in clause (a)(iii) above.

 

“Material
Indebtedness” means Indebtedness (other than the Loans), or obligations in
respect of one or more Swap Agreements, of any one or more of the Consolidated
Group in an aggregate principal amount exceeding $2,500,000.  For purposes of determining Material
Indebtedness, the “principal amount” of the obligations of the Parent Borrower
or any Subsidiary in respect of any Swap Agreement at any time shall be the
maximum aggregate amount (giving effect to any netting agreements) that the
Parent Borrower or such Subsidiary would be required to pay if such Swap Agreement
were terminated at such time.

 

“MGS”
has the meaning provided in the recitals hereto, together with its successors
and permitted assigns.

 

“Moody’s”
means Moody’s Investors Service, Inc. and any successor thereto.

 

12

 

“Multiemployer
Plan” means any employee benefit plan of the type described in Section 4001(a)(3) of
ERISA, to which any Borrower or any ERISA Affiliate makes or is obligated to
make contributions, or during the preceding five plan years, has made or been
obligated to make contributions.

 

“Net
Cash Proceeds” means the aggregate proceeds paid in cash or Cash
Equivalents received by any member of the Consolidated Group in connection with
any Disposition, Debt Transaction, Equity Transaction or Securitization
Transaction, net of (a) direct costs and expenses (including legal,
accounting and investment banking fees, sales commissions and underwriting and
brokerage discounts), (b) estimated taxes paid or payable as a result
thereof, (c) the principal amount of any Indebtedness that is secured by
an asset and that is required to be repaid in connection with such Disposition,
Debt Transaction, Equity Transaction or Securitization Transaction (other than
Indebtedness under the Loan Documents) and (d) any amounts which are
required to be placed in escrow (unless and until such amounts are released to
a member of the Consolidated Group).  For
purposes hereof, “Net Cash Proceeds” includes any cash or Cash Equivalents
received upon the disposition of any non-cash consideration received by a
member of the Consolidated Group in any Disposition, Debt Transaction, Equity
Transaction or Securitization Transaction.

 

“Obligations”
means, without duplication, (a) all advances to, and debts, liabilities,
obligations, covenants and duties of, any Loan Party arising under any Loan
Document or otherwise with respect to any Loan, whether direct or indirect
(including those acquired by assumption), absolute or contingent, due or to
become due, now existing or hereafter arising and including interest and fees
that accrue after the commencement by or against any Loan Party or any
Affiliate thereof of any proceeding under any Debtor Relief Laws naming such
Person as the debtor in such proceeding, regardless of whether such interest
and fees are allowed claims in such proceeding, (b) all obligations under
any Swap Agreement between any Loan Party and any Lender or Affiliate of a
Lender to the extent permitted hereunder and (c) all obligations under any
Treasury Management Agreement between any Loan Party and any Lender or
Affiliate of a Lender to the extent that such obligations do not constitute “Indebtedness”
under the Senior Note Documents.

 

“Organization
Documents” means, (a) with respect to any corporation, the certificate
or articles of incorporation and the bylaws (or equivalent or comparable
constitutive documents with respect to any non U.S. jurisdiction); (b) with
respect to any limited liability company, the certificate or articles of
formation or organization and operating agreement; and (c) with respect to
any partnership, joint venture, trust or other form of business entity, the
partnership, joint venture or other applicable agreement of formation or
organization and any agreement, instrument, filing or notice with respect
thereto filed in connection with its formation or organization with the
applicable Governmental Authority in the jurisdiction of its formation or
organization and, if applicable, any certificate or articles of formation or
organization of such entity.

 

“Original
Credit Agreement” means that certain Amended and Restated Credit Agreement
dated as of December 21, 2006, among the Borrowers, the lenders party
thereto, JPMorgan Chase Bank, N.A., as administrative agent, Keybank National
Association, as syndication agent, and HSBC Bank USA, N.A., Wachovia Bank,
National Association and Bank North, N.A., as co-documentation agents, as
amended through the date hereof.

 

“Other
Taxes” means 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 Loan Document or from the execution, delivery
or enforcement of, or otherwise with respect to, this Credit Agreement or any
other Loan Document.

 

13

 

“Outstanding
Amount” means with respect to Revolving Loans on any date, the aggregate
outstanding principal amount thereof after giving effect to any Borrowings and
prepayments or repayments of Revolving Loans, as the case may be, occurring on
such date.

 

“Parent
Borrower” has the meaning provided in the recitals hereto, together with
its successors and permitted assigns.

 

“Participant”
has the meaning specified in Section 10.06(d).

 

“PBGC”
means the Pension Benefit Guaranty Corporation.

 

“Pension
Plan” means any “employee pension benefit plan” (as such term is defined in
Section 3(2) of ERISA), other than a Multiemployer Plan, that is
subject to Title IV of ERISA and is sponsored or maintained by any Borrower or
any ERISA Affiliate or to which any Borrower or any ERISA Affiliate contributes
or has an obligation to contribute, or in the case of a multiple employer or
other plan described in Section 4064(a) of ERISA, has made
contributions at any time during the immediately preceding five plan years.

 

“Permitted
Acquisition” means any acquisition by the Parent Borrower or a wholly-owned
Subsidiary that is approved, on a case-by-case basis, by the Administrative
Agent and the Required Lenders in their discretion.

 

“Permitted
Encumbrances” means:

 

(a)           Liens imposed by law for taxes that are not yet due or are
being contested in compliance with Section 6.05;

 

(b)           carriers’, warehousemen’s, mechanics’, materialmen’s,
repairmen’s and other like Liens imposed by law, arising in the ordinary course
of business and securing obligations that are not overdue by more than 30 days
or are being contested in compliance with Section 6.05;

 

(c)           pledges and deposits made in the ordinary course of
business in compliance with workers’ compensation, unemployment insurance and
other social security laws or regulations;

 

(d)           deposits to secure the performance of bids, trade
contracts, leases, statutory obligations, surety and appeal bonds, performance
bonds and other obligations of a like nature, in ease case in the ordinary
course of business;

 

(e)           liens arising by operation of law to secure landlords or
lessors under leases made in the ordinary course of business and securing
obligations that are not overdue by more than 30 days or are being contested in
compliance with Section 6.05;

 

(f)            judgment liens in respect of judgments that do not
constitute an Event of Default under clause (i) of Section 8.01;

 

(g)           easements, zoning restrictions, rights-of-way and similar
encumbrances on real property imposed by law or arising in the ordinary course
of business that do not secure any monetary obligations and do not materially
detract from the value of the affected property or interfere with the ordinary
conduct of business of the Parent Borrower or any Subsidiary;

 

14

 

(h)           (i) licenses, sublicenses, leases or subleases
granted by the Parent Borrower or any of its Subsidiaries to other Persons not
materially interfering with the conduct of the business of the Parent Borrower
or any of its Subsidiaries and (ii) any interest or title of a lessor,
sublessor or licensor under any lease or license agreement not prohibited by
this Credit Agreement to which the Parent Borrower or any of its Subsidiaries
is a party;

 

(i)            Liens arising from precautionary UCC financing statement
filings regarding operating leases entered into in the ordinary course of
business; and

 

(j)            Liens existing as of the Closing Date set forth on Schedule
7.02.

 

“Permitted
Investments” means:

 

(a)           direct obligations of or obligations, the principal of and
interest on which are unconditionally guaranteed by, the United States (or by
any agency thereof to the extent such obligations are backed by the full faith
and credit of the United States), in each case maturing within one year from
the date of acquisition thereof;

 

(b)           investments in commercial paper maturing within 270 days
from the date of acquisition thereof and having, as of such date of
acquisition, the highest credit rating obtainable from S&P or from Moody’s;

 

(c)           investments in certificates of deposit, banker’s
acceptances and time deposits maturing within 180 days from the date of
acquisition thereof issued or guaranteed by or placed with, and money market
deposit accounts issued or offered by, any domestic office of any commercial
bank organized under the laws of the United States or any State thereof that
has a combined capital and surplus and undivided profits of not less than
$500,000,000; and

 

(d)           fully collateralized repurchase agreements with a term of
not more than 30 days for securities described in clause (a) above and
entered into with a financial institution satisfying the criteria described in
clause (c) above.

 

“Permitted
Liens” means any Liens in respect of property of any Loan Party permitted
to exist pursuant to the terms of Section 7.02.

 

“Person”
means any natural person, corporation, limited liability company, trust, joint
venture, association, company, partnership, Governmental Authority or other
entity.

 

“Plan”
means any “employee benefit plan” (as such term is defined in Section 3(3) of
ERISA) established by any Borrower or, with respect to any such plan that is
subject to Section 412 of the Code or Title IV of ERISA, any ERISA
Affiliate.

 

“Platform”
has the meaning specified in Section 6.02.

 

“Public
Lender” has the meaning specified in Section 6.02.

 

“Prepaid
Commission Expenses” means the amount of any one-time up-front payment
required to be paid by the Parent Borrower or any Subsidiary to the landlord or
lessor under any Laundry Facility Agreement upon the commencement of such
Laundry Facility Agreement (but without duplication for any amount included as
a Capital Expenditure).

 

15

 

“Pro
Forma Basis” means, with respect to the calculation of the financial
covenants contained in Section 7.12 in connection with the
Automatic Laundry Acquisition or a Permitted Acquisition that such calculation
shall give pro forma effect to such Permitted Acquisition that is a Material Acquisition,
all other Permitted Acquisitions that are Material Acquisitions, all issuances,
incurrences or assumptions of Indebtedness (with any such Indebtedness being
deemed to be amortized over the applicable period in accordance with its terms)
and all dispositions that have occurred since the beginning of the four
consecutive fiscal quarter period for which such calculation is being made as
if it occurred on the first day of such four consecutive fiscal quarter period
(including (a) costs savings to the extent such cost savings would be
permitted to be reflected in pro forma financial information complying with the
requirements of GAAP and Article XI of Regulation S-X under the Securities
Act of 1933, as amended, as interpreted by the Staff of the SEC, and as
certified by a Financial Officer or (b) other cost savings to the extent
such cost savings would be acceptable to the Administrative Agent in its sole
discretion).

 

“Property”
means an interest of any kind in any property or asset, whether real, personal
or mixed, and whether tangible or intangible.

 

“Register”
has the meaning provided in Section 10.06(c).

 

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

 

“Reportable
Event” means any of the events set forth in Section 4043(c) of
ERISA, other than events for which the thirty (30) days’ notice period has been
waived.

 

“Request
for Credit Extension” means with respect to a Borrowing of Loans or the
conversion or continuation of Loans, a Loan Notice.

 

“Required
Lenders” means, as of any date of determination, Lenders having more than
50% of the Aggregate Revolving Commitments or, if the Revolving Commitments
shall have expired or been terminated, Lenders holding in the aggregate more
than 50% of the Revolving Loans; provided that the commitments of, and the
portion of the Revolving Loans held or deemed held by, any Defaulting Lender
shall be excluded for purposes of making a determination of Required Lenders.

 

“Responsible
Officer” means the chief executive officer, president, chief financial
officer, vice president, treasurer or assistant treasurer of a Loan Party.  Any document delivered hereunder that is
signed by a Responsible Officer of a Loan Party shall be conclusively presumed
to have been authorized by all necessary corporate, partnership and/or other
action on the part of such Loan Party and such Responsible Officer shall be
conclusively presumed to have acted on behalf of such Loan Party.

 

“Restricted
Payments” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any Equity Interests in the
Parent Borrower or any Subsidiary, or any payment (whether in cash, securities
or other property), including any sinking fund or similar deposit, on account
of the purchase, redemption, retirement, acquisition, cancellation or
termination of any Equity Interests in the Parent Borrower or any Subsidiary or
any option, warrant or other right to acquire any such Equity Interests in the
Parent Borrower or any Subsidiary.

 

“Revolving
Commitment” means the commitment of each Lender to make Revolving Loans
(and to share in Revolving Loans) hereunder.

 

16

 

“Revolving
Commitment Percentage” means, for each Lender, a fraction (expressed as a
percentage carried to the ninth decimal place), the numerator of which is such
Lender’s Revolving Committed Amount and the denominator of which is Aggregate
Revolving Committed Amount.  The
Revolving Commitment Percentages as of the Closing Date are set forth on Schedule
2.01.

 

“Revolving
Committed Amount” means, for each Lender, the amount of such Lender’s
Revolving Commitment.  The Revolving
Committed Amounts as of the Closing Date are set out in Schedule 2.01.

 

“Revolving
Loan” has the meaning provided in Section 2.01.

 

“Revolving
Notes” means the promissory notes, if any, given to evidence the Revolving
Loans, as amended, restated, modified, supplemented, extended, renewed or
replaced.  A form of Revolving Note is
attached as Exhibit 2.13.

 

“Revolving
Termination Date” means April 1, 2009.

 

“S&P”
means Standard & Poor’s Ratings Services, a division of The McGraw
Hill Companies, Inc. and any successor thereto.

 

“Sale
and Leaseback Transaction” means, with respect to the Parent Borrower or
any Subsidiary, any arrangement, directly or indirectly, with any Person (other
than a Loan Party) whereby the Parent Borrower or such Subsidiary shall sell or
transfer any property, real or personal, used or useful in its business,
whether now owned or hereafter acquired, and thereafter rent or lease such
property or other property that it intends to use for substantially the same
purpose or purposes as the property being sold or transferred.

 

“SEC”
means the Securities and Exchange Commission, or any Governmental Authority
succeeding to any of its principal functions.

 

“Securitization
Transaction” means any financing or factoring or similar transaction (or
series of such transactions) entered by the Parent Borrower or any of its
subsidiaries pursuant to which it may sell, convey or otherwise transfer, or
grant a security interest in, accounts, payments, receivables, rights to future
lease payments or residuals or similar rights to payment to a special purpose
subsidiary or affiliate or any other Person.

 

“Seller
Subordinated Note” means that certain Promissory Note dated as of as of the
date hereof given by MGS in favor of Paceco Investors, L.P., a Texas limited
partnership in an aggregate principal amount of $10,000,000.

 

“Seller
Subordinated Note Documents” means all or any of, as applicable, the Seller
Subordinated Note, all side letters, instruments, agreements and other
documents evidencing or governing the Seller Subordinated Note or any Seller
Subordinated Note Refinancing Indebtedness, providing for any Guarantee or
other right in respect thereof, affecting the terms of the foregoing and all
schedules, exhibits and annexes to each of the foregoing.  Notwithstanding the foregoing, the term
Seller Subordinated Note Documents shall not include the Automatic Laundry
Acquisition Agreement.

 

“Seller
Subordinated Note Refinancing Indebtedness” shall mean any Indebtedness
issued in exchange for, or the net proceeds of which are used to extend,
refinance, renew, replace, defease or refund (collectively, to “Refinance”),
the Seller Subordinated Note being Refinanced (or previous refinancings thereof
constituting Seller Subordinated Note Refinancing Indebtedness), provided
that (a) the principal 

 

17

 

amount
of such Seller Subordinated Note Refinancing Indebtedness does not exceed the
principal amount of the Indebtedness so Refinanced (plus unpaid accrued
interest and premium thereon and underwriting discounts, fees, commissions and
expenses), (b) the average life to maturity of such Seller Subordinated
Note Refinancing Indebtedness is greater than or equal to that of the
Indebtedness being Refinanced, (c) the terms of such Seller Subordinated
Note Refinancing Indebtedness are not less favorable, in any material respect,
to the Lenders and the Borrowers than the terms of the Seller Subordinated Note
and (d) no Seller Subordinated Note Refinancing Indebtedness shall have
obligors that are not Loan Parties hereunder, or greater guarantees, than the
Indebtedness being Refinanced.

 

“Senior
Notes” means (a) the 7.625% senior notes due 2015 issued by the Parent
Borrower on August 16, 2005 and (b) any substantially identical
senior notes that are registered under the Securities Act of 1933, as amended,
and issued in exchange for the senior notes described in clause (a) of
this definition.

 

“Senior
Notes Document” means all or any of, as applicable, the Senior Notes
Indenture, the indenture or indentures under which the Senior Notes Refinancing
Indebtedness is issued, all side letters, instruments, agreements and other
documents evidencing or governing the Senior Notes or any Senior Notes
Refinancing Indebtedness, providing for any Guarantee or other right in respect
thereof, affecting the terms of the foregoing or entered into in connection
therewith and all schedules, exhibits and annexes to each of the foregoing.

 

“Senior
Notes Indenture” means the Indenture dated as of August 16, 2005,
among the Parent Borrower, the Subsidiaries listed therein and Wachovia Bank,
National Association, as trustee, in respect of the Senior Notes.

 

“Senior
Notes Refinancing Indebtedness” shall mean any Indebtedness issued in
exchange for, or the net proceeds of which are used to extend, refinance,
renew, replace, defease or refund (collectively, to “Refinance”), the
Senior Notes being Refinanced (or previous refinancings thereof constituting
Senior Notes Refinancing Indebtedness), provided that (a) the
principal amount of such Senior Notes Refinancing Indebtedness does not exceed
the principal amount of the Indebtedness so Refinanced (plus unpaid
accrued interest and premium thereon and underwriting discounts, fees,
commissions and expenses), (b) the average life to maturity of such Senior
Notes Refinancing Indebtedness is greater than or equal to that of the
Indebtedness being Refinanced, (c) the terms of such Senior Notes
Refinancing Indebtedness are not less favorable, in any material respect, to
the Lenders and the Borrowers than the terms of the Senior Notes and (d) no
Senior Notes Refinancing Indebtedness shall have obligors that are not Loan
Parties hereunder, or greater guarantees, than the Indebtedness being
Refinanced.

 

“Senior
Secured Credit Agreement” means that credit agreement dated as of the
Closing Date, as amended, modified, extended, renewed or replaced, among the
Parent Borrower and the Subsidiaries identified therein, as co-borrowers and
guarantors, the lenders identified therein and Bank of America, as
administrative agent, relating to establishment of senior secured revolving
credit and term loan facilities in an original principal amount of
$170,000,000.

 

“Senior
Secured Loan Documents” means the Senior Secured Credit Agreement and the
other “Loan Documents” relating thereto, as referenced and defined therein.

 

“Shareholder
Rights Agreement” means the Shareholder Rights Agreement dated as of
June 15, 1999, by and between the Parent Borrower and State Street Bank
and Trust Company.

 

“Subordinated
Debt” means any Indebtedness of a member of the Consolidated Group that by
its terms is expressly subordinated in right of payment to the prior payment of
the Revolving Loans on terms 

 

18

 

and
conditions, and evidenced by documentation, satisfactory to the Administrative
Agent and the Required Lenders.

 

“Subsidiary”
of a Person means a corporation, partnership, joint venture, limited liability
company or other business entity of which a majority of the shares of
securities or other interests having ordinary voting power for the election of
directors or other governing body (other than securities or interests having
such power only by reason of the happening of a contingency) are at the time beneficially
owned, or the management of which is otherwise controlled, directly, or
indirectly through one or more intermediaries, or both, by such Person.  Unless otherwise provided, “Subsidiary” shall
refer to a Subsidiary of the Parent Borrower.

 

“Swap
Agreement” means any agreement with respect to any swap, forward, future or
derivative transaction or option or similar agreement involving, or settled by
reference to, one or more rates, currencies, commodities, equity or debt
instruments or securities, or economic, financial or pricing indices or
measures of economic, financial or pricing risk or value or any similar
transaction or any combination of these transactions; provided that no
phantom stock or similar plan providing for payments only on account of
services provided by current or former directors, officers, employees or
consultants of the Parent Borrower or the Subsidiaries shall be a Swap
Agreement.  All Swap Agreements, if any,
between the Borrowers (or any one of them) and one or more Lenders (or
Affiliates thereof) are independent agreements governed by the written
provisions of such Swap Agreements, which will remain in full force and effect,
unaffected by any repayment, prepayment, acceleration, reduction, increase or
change in the terms of the Loans or other Obligations.

 

“Synthetic
Lease” means any synthetic lease, tax retention operating lease,
off-balance sheet loan or similar off-balance sheet financing arrangement that
is considered borrowed money indebtedness for tax purposes but is classified as
an operating lease under GAAP.

 

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

 

“Transactions”
means the execution, delivery and performance by each Loan Party of the Loan
Documents to which it is to be a party, the borrowing of Loans and the use of
proceeds thereof.

 

“Treasury
Management Agreement” means any agreement governing the provision of
treasury or cash management services, including deposit accounts, funds
transfer, automated clearinghouse, zero balance accounts, returned check
concentration, controlled disbursement, lockbox, account reconciliation and
reporting and trade finance services.

 

“Type”
means, with respect to any Revolving Loan, its character as a Base Rate Loan or
a Eurodollar Rate Loan.

 

“UCC”
means the Uniform Commercial Code in effect in any applicable jurisdiction from
time to time.

 

“United
States” or “U.S.” means the United States of America.

 

“Wholly
Owned Subsidiary” means, with respect to any direct or indirect Subsidiary
of any Person, that 100% of the Equity Interests with ordinary voting power issued
by such Subsidiary (other than directors’ qualifying shares and investments by
foreign nationals mandated by applicable Law) is beneficially owned, directly
or indirectly, by such Person.

 

19

 

1.02        Interpretive Provisions.

 

With
reference to this Credit Agreement and each other Loan Document, unless
otherwise specified herein or in such other Loan Document:

 

(a)           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, (i) any
definition of or reference to any agreement, instrument or other document
(including any Organization Document) shall be construed as referring to such
agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein or in any other Loan
Document), (ii) any reference herein to any Person shall be construed to
include such Person’s successors and assigns, (iii) the words “herein,”
“hereof” and “hereunder,” and words of similar import when used
in any Loan Document, shall be construed to refer to such Loan Document in its
entirety and not to any particular provision thereof, (iv) all references
in a Loan Document to Articles, Sections, Exhibits and Schedules shall be
construed to refer to Articles and Sections of, and Exhibits and Schedules to,
the Loan Document in which such references appear, (v) any reference to
any law shall include all statutory and regulatory provisions consolidating,
amending, replacing or interpreting such law and any reference to any law or
regulation shall, unless otherwise specified, refer to such law or regulation
as amended, modified or supplemented from time to time, and (vi) 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.

 

(b)           In the computation of periods of time
from a specified date to a later specified date, the word “from” means “from
and including”; the words “to” and “until” each mean “to but
excluding”; and the word “through” means “to and including”.

 

(c)           Section headings herein and in
the other Loan Documents are included for convenience of reference only and
shall not affect the interpretation of this Credit Agreement or any other Loan
Document.

 

1.03        Accounting Terms and Provisions.

 

(a)           All accounting terms not specifically
or completely defined herein shall be construed in conformity with, and all
financial data (including financial ratios and other financial calculations)
required to be submitted pursuant to this Credit Agreement shall be prepared in
conformity with, GAAP applied on a consistent basis, as in effect from time to
time, applied in a manner consistent with that used in preparing the audited
financial statements referenced in Section 4.01(d), except
as otherwise specifically prescribed herein.

 

(b)           Notwithstanding any provision herein
to the contrary, determinations of (i) the applicable pricing level under
the definition of “Applicable Percentage” and (ii) compliance with the
financial covenants shall be made on a Pro Forma Basis.

 

20

 

(c)           The Parent Borrower will provide a
written summary of material changes in GAAP or in the consistent application
thereof with each annual and quarterly Compliance Certificate delivered in
accordance with Section 6.01(c). 
If at any time any change in GAAP or in the consistent application
thereof would affect the computation of any financial ratio or requirement set
forth in any Loan Document, and either the Parent Borrower or the Required
Lenders shall object in writing to determining compliance based on such change,
then such computations shall continue to be made on a basis consistent with the
most recent financial statements delivered pursuant to Section 6.01(a) or
(b) as to which no such objection has been made.

 

1.04        Rounding.

 

Any
financial ratios required to be maintained by the Parent Borrower pursuant to
this Credit Agreement shall be calculated by dividing the appropriate component
by the other component, carrying the result to one place more than the number
of places by which such ratio is expressed herein and rounding the result up or
down to the nearest number (with a rounding up if there is no nearest number).

 

1.05        Times of Day.

 

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

 

ARTICLE II

 

REVOLVING COMMITMENTS AND CREDIT EXTENSIONS

 

2.01        Revolving Commitments.

 

Subject
to the terms and conditions set forth herein, during the Commitment Period,
each Lender severally agrees to make revolving credit loans (the “Revolving
Loans”) to the Borrowers on any Business Day; provided that after giving
effect to any such Revolving Loan, (a) with regard to the Lenders
collectively, the Outstanding Amount of Revolving Loans shall not exceed
FIFTEEN MILLION DOLLARS ($15,000,000) (as such amount may be increased or
decreased in accordance with the provisions hereof, the “Aggregate Revolving
Committed Amount”) and (b) with regard to each Lender individually,
such Lender’s Revolving Commitment Percentage of Revolving Loans shall not
exceed its respective Revolving Committed Amount.  Revolving Loans will be made in Dollars and
may consist of Base Rate Loans, Eurodollar Rate Loans or a combination thereof,
as the applicable Borrower may request, and may be repaid and reborrowed in
accordance with the provisions hereof.

 

2.02        Borrowings, Conversions and
Continuations.

 

(a)           Each
Borrowing, each conversion of Loans from one Type to the other, and each
continuation of Eurodollar Rate Loans shall be made upon a Borrower’s
irrevocable notice to the Administrative Agent, which may be given by
telephone.  Each such notice must be
received by the Administrative Agent not later than 11:00 a.m. (i) with
respect to Eurodollar Rate Loans, three (3) Business Days prior to the
requested date of, or (ii) with respect to Base Rate Loans, on the
requested date of, any Borrowing, conversion or continuation.  Each telephonic notice by any Borrower
pursuant to this Section 2.02(a) must be confirmed promptly by
delivery to the Administrative Agent of a written Loan Notice, appropriately
completed and signed by a Responsible Officer of the applicable Borrower.  Each Borrowing, conversion or continuation
shall be in a principal amount of (i) with respect to Eurodollar 

 

21

 

Rate
Loans, $5,000,000 or a whole multiple of $1,000,000 in excess thereof or (ii) with
respect to Base Rate Loans, $500,000 or a whole multiple of $100,000 in excess
thereof.  Each Loan Notice (whether
telephonic or written) shall specify (i) that the applicable Borrower’s
request is with respect to Revolving Loans, (ii) whether such request is
for a Borrowing, conversion, or continuation, (iii) the requested date of
such Borrowing, conversion or continuation (which shall be a Business Day), (iv) the
principal amount of Loans to be borrowed, converted or continued, (v) the
Type of Loans to be borrowed, converted or continued, and (vi) if
applicable, the duration of the Interest Period with respect thereto.  If a Borrower fails to specify a Type of Loan
in a Loan Notice or if a Borrower fails to give a timely notice requesting a
conversion or continuation, then the applicable Loans shall be made as, or
converted to, Base Rate Loans.  Any  automatic conversion to Base Rate Loans shall
be effective as of the last day of the Interest Period then in effect with
respect to the applicable Eurodollar Rate Loans.  If a Borrower requests a Borrowing of,
conversion to, or continuation of Eurodollar Rate Loans in any Loan Notice, but
fails to specify an Interest Period, the Interest Period will be deemed to be
one month.

 

(b)           Following
receipt of a Loan Notice, the Administrative Agent shall promptly notify each
Lender of the amount of its pro rata share of the applicable Loans, and if no
timely notice of a conversion or continuation is provided by the applicable
Borrower, the Administrative Agent shall notify each Lender of the details of
any automatic conversion to Base Rate Loans described in the preceding
subsection.  In the case of a Borrowing,
each Lender shall make the amount of its Loan available to the Administrative
Agent in immediately available funds at the Administrative Agent’s Office not
later than 1:00 p.m. on the Business Day specified in the applicable Loan
Notice.  Upon satisfaction of the
applicable conditions set forth in Section 4.02 (and, if such
Borrowing is the initial Credit Extension, Section 4.01), the
Administrative Agent shall make all funds so received available to the
applicable Borrower in like funds as received by the Administrative Agent
either by (i) crediting the account of the applicable Borrower on the
books of Bank of America with the amount of such funds or (ii) wire
transfer of such funds, in each case in accordance with instructions provided
to (and reasonably acceptable to) the Administrative Agent by the applicable
Borrower.

 

(c)           Except
as otherwise provided herein, without the consent of the Required Lenders, (i) a
Eurodollar Rate Loan may be continued or converted only on the last day of an
Interest Period for such Eurodollar Rate Loan and (ii) any conversion
into, or continuation as, a Eurodollar Rate Loan may be made only if the
conditions to Credit Extensions in Section 4.02 have been
satisfied.  During the existence of a
Default or Event of Default, (i) no Loan may be requested as, converted to
or continued as a Eurodollar Rate Loan and (ii) at the request of the
Required Lenders, any outstanding Eurodollar Rate Loan shall be converted to a
Base Rate Loan on the last day of the Interest Period with respect thereto.

 

(d)           The
Administrative Agent shall promptly notify the Parent Borrower and the Lenders
of the interest rate applicable to any Interest Period for Eurodollar Rate
Loans upon determination of such interest rate. 
The determination of the Eurodollar Rate by the Administrative Agent
shall be conclusive in the absence of manifest error.  At any time that Base Rate Loans are
outstanding, the Administrative Agent shall notify the Parent Borrower and the
Lenders of any change in Bank of America’s prime rate used in determining the
Base Rate promptly following the public announcement of such change.

 

(e)           After
giving effect to all Borrowings, conversions and continuations of Revolving
Loans, there shall not be more than eight Interest Periods in effect with
respect to Revolving Loans.

 

2.03        [Reserved].

 

2.04        [Reserved].

 

22

 

2.05        Repayment of Loans.

 

The
Borrowers shall repay to the Lenders the Outstanding Amount of Revolving Loans
on the Revolving Termination Date.

 

2.06        Prepayments.

 

(a)           Voluntary
Prepayments.  Except as otherwise
expressly provided herein, the Loans may be repaid in whole or in part without
premium or penalty (except, in the case of Loans other than Base Rate Loans,
amounts payable pursuant to Section 3.05); provided that (i) notice
thereof must be received by 11:00 a.m. by the Administrative Agent at
least three (3) Business Days prior to the date of prepayment, in the case
of Eurodollar Rate Loans, and one (1) Business Day prior to the date of
prepayment, in the case of Base Rate Loans, and (ii) any such prepayment
shall be a minimum principal amount of $5,000,000 and integral multiples of
$1,000,000 in excess thereof, in the case of Eurodollar Rate Loans and $500,000
and integral multiples of $100,000 in excess thereof, in the case of Base Rate
Loans, or, in each case, the entire remaining principal amount thereof, if
less.

 

Each
such notice of voluntary prepayment hereunder shall be irrevocable and shall
specify the date and amount of prepayment and the Loans and Types of Loans that
are being prepaid.  The Administrative
Agent will give prompt notice to the applicable Lenders of any prepayment on
the Loans and the Lender’s interest therein. 
Prepayments of Eurodollar Rate Loans hereunder shall be accompanied by
accrued interest on the amount prepaid and breakage or other amounts due, if
any, under Section 3.05.

 

(b)           Mandatory
Prepayments.

 

(i)            Revolving Commitments.  If at any time the Outstanding Amount of
Revolving Loans shall exceed the Aggregate Revolving Committed Amount,
immediate prepayment will be made on or in respect of the Revolving Loans in an
amount equal to such excess.

 

(ii)           Debt Transactions.  Prepayment will be made on the Revolving
Loans in an amount equal to 100% of the Net Cash Proceeds from any Debt
Transactions on the fifth Business Day following receipt thereof.

 

(iii)          Equity Transactions.  Prepayment will be made on the Revolving
Loans in an amount equal to 100% of the Net Cash Proceeds from any Equity
Transactions on the fifth Business Day following receipt thereof.

 

(c)           Application.  Within each Loan, prepayments will be applied
first to Base Rate Loans, then to Eurodollar Rate Loans in direct order of
Interest Period maturities.  In addition:

 

(i)            Voluntary Prepayments.  Voluntary prepayments shall be applied as
specified by the Parent Borrower; provided that voluntary prepayments on
the Revolving Loans.

 

(ii)           Mandatory
Prepayments.  Mandatory
prepayments on the Revolving Loans will be paid by the Administrative Agent to
the Lenders ratably in accordance with their respective interests therein; provided
that:

 

(A)          Mandatory prepayments in respect of
the Revolving Commitments under subsection (b)(i) above shall be applied
to the respective Revolving Loans as appropriate.

 

23

 

(B)           Mandatory prepayments in respect of
Debt Transactions under subsection (b)(ii), and Equity Transactions
under subsection (b)(iii) shall be applied to the Revolving Loans
under this Credit Agreement until paid in full.

 

2.07        Termination or Reduction of Revolving
Commitments.

 

(a)           Voluntary
Reductions.  The Revolving
Commitments hereunder may be permanently reduced in whole or in part by notice
from the Parent Borrower to the Administrative Agent; provided that (i) any
such notice thereof must be received by 1:00 p.m. at least three (3) Business
Days prior to the date of reduction or termination and any such prepayment
shall be in a minimum principal amount of $5,000,000 and integral multiples of
$1,000,000 in excess thereof; and (ii) the Revolving Commitments may not
be reduced to an amount less than the Revolving Loans then outstanding thereunder.  The Administrative Agent will give prompt
notice to the Lenders of any such reduction in Revolving Commitments.  Any reduction of Revolving Commitments shall
be applied ratably to the commitment of each Lender according to its commitment
percentage thereof.  All commitment or
other fees accrued with respect thereto through the Closing Date of any
termination of Revolving Commitments shall be paid on the Closing Date of such
termination.

 

(b)           Mandatory
Reductions.  The Aggregate Revolving
Committed Amount will be permanently reduced by the amount of any prepayment on
the Revolving Loans in respect of Debt Transactions under Section 2.06(b)(ii) and
Equity Transactions under Section 2.06(b)(iii).

 

2.08        Interest.

 

(a)           Subject to the provisions of subsection
(b) below, (i) each Eurodollar Rate Loan shall bear interest
on the outstanding principal amount thereof for each Interest Period at a rate
per annum equal to the Eurodollar Rate for such Interest Period plus the
Applicable Percentage; and (ii) each Loan that is a Base Rate Loan shall
bear interest on the outstanding principal amount thereof from the applicable
borrowing date at a rate per annum equal to the Base Rate plus the
Applicable Percentage.

 

(b)           (i)            If
any amount of principal of any Loan is not paid when due (without regard to any
applicable grace periods), whether at stated maturity, by acceleration or
otherwise, such amount shall thereafter bear interest at a fluctuating interest
rate per annum at all times equal to the Default Rate to the fullest extent
permitted by applicable Law.

 

(ii)           If any amount (other than principal
of any Loan) payable by any Borrower under any Loan Document is not paid when
due (without regard to any applicable grace periods), whether at stated
maturity, by acceleration or otherwise, then upon the request of the Required
Lenders, such amount shall thereafter bear interest at a fluctuating interest
rate per annum at all times equal to the Default Rate to the fullest extent
permitted by applicable Law.

 

(iii)          Upon the request of the Required
Lenders, while any Event of Default exists, the Borrowers shall at the request
of the Required Lenders, pay interest on the principal amount of all
outstanding Obligations hereunder at a fluctuating interest rate per annum at
all times equal to the Default Rate to the fullest extent permitted by
applicable Law.

 

24

 

(iv)          Accrued and unpaid interest on past
due amounts (including interest on past due interest) shall be due and payable upon
demand.

 

(c)           Interest
on each Loan shall be due and payable in arrears on each Interest Payment Date
applicable thereto and at such other times as may be specified herein.  Interest hereunder shall be due and payable
in accordance with the terms hereof before and after judgment, and before and
after the commencement of any proceeding with respect to any Loan Party under
any Debtor Relief Law.

 

2.09        Fees.

 

(a)           Commitment
Fee.  The Borrowers shall pay to the
Administrative Agent for the account of each Lender in accordance with its
Revolving Commitment Percentage, a commitment fee equal to one percent (1.0%)
per annum of the actual daily amount by which the Aggregate Revolving Committed
Amount exceeds the Outstanding Amount of Revolving Loans.  The commitment fee shall accrue at all times
during the Commitment Period, including at any time during which one or more of
the conditions in Article IV is not met, and shall be due and
payable quarterly in arrears on the last Business Day of each March, June, September and
December, commencing with the first such date to occur after the Closing Date,
and on the Revolving Termination Date. 
The commitment fee shall be calculated quarterly in arrears, and if
there is any change in the Applicable Percentage during any quarter, the actual
daily amount shall be computed and multiplied by the Applicable Percentage
separately for each period during such quarter that such Applicable Percentage
was in effect.

 

(b)           Other
Fees.

 

(i)            The Borrowers shall pay to the
Arranger and the Administrative Agent for their own respective accounts fees in
the amounts and at the times specified in the Fee Letter.  Such fees shall be fully earned when paid and
shall not be refundable for any reason whatsoever.

 

(ii)           The Borrowers shall pay to the
Lenders such fees as shall have been separately agreed upon in writing in the
amounts and at the times so specified. 
Such fees shall be fully earned when paid and shall not be refundable
for any reason whatsoever.

 

2.10        Computation of Interest and Fees.

 

All
computations of interest for Base Rate Loans when the Base Rate is determined
by Bank of America’s prime rate shall be made on the basis of a year of 365 or
366 days, as the case may be, and actual days elapsed.  All other computations of fees and interest
shall be made on the basis of a three hundred sixty (360) day year and actual
days elapsed (which results in more fees or interest, as applicable, being paid
than if computed on the basis of a three hundred sixty-five (365) day year).  Interest shall accrue on each Loan for the
day on which the Loan is made, and shall not accrue on a Loan, or any portion
thereof, for the day on which the Loan or such portion is paid, provided
that any Loan that is repaid on the same day on which it is made shall, subject
to Section 2.11(a), bear interest for one day.  Each determination by the Administrative
Agent of an interest rate or fee hereunder shall be conclusive and binding for
all purposes, absent manifest error.

 

2.11        Payments Generally; Administrative
Agent’s Clawback.

 

(a)           General.  All payments to be made by the Borrowers
shall be made without condition or deduction for any counterclaim, defense,
recoupment or setoff.  Except as
otherwise expressly provided herein, all payments by the Borrowers hereunder
shall be made to the Administrative Agent, for the account of the Lenders to
which such payment is owed, at the Administrative Agent’s Office in Dollars 

 

25

 

and
in immediately available funds not later than 2:00 p.m. on the date
specified herein.  The Administrative
Agent will promptly distribute to each Lender its pro rata share of such
payment in like funds as received by wire transfer to such Lender’s Lending
Office.  All payments received by the
Administrative Agent after 2:00 p.m. shall be deemed received on the
immediately succeeding Business Day and any applicable interest or fee shall
continue to accrue.  Subject to the
definition of “Interest Period”, if any payment to be made by the Borrowers
shall come due on a day other than a Business Day, payment shall be made on the
next following Business Day, and such extension of time shall be reflected in
computing interest or fees, as the case may be.

 

(b)           (i) Funding
by Lenders; Presumption by Administrative Agent.  Unless the Administrative Agent shall have
received notice from a Lender prior to the proposed date of any Borrowing of
Eurodollar Rate Loans (or, in the case of any Borrowing of Base Rate Loans,
prior to 12:00 noon on the date of such Borrowing) that such Lender will not
make available to the Administrative Agent such Lender’s share of such
Borrowing, the Administrative Agent may assume that such Lender has made such
share available on such date in accordance with Section 2.02 (or,
in the case of a Borrowing of Base Rate Loans, that such Lender has made such
share available in accordance with and at the time required by Section 2.02)
and may, in reliance upon such assumption, make available to the Borrowers a
corresponding amount.  In such event, if
a Lender has not in fact made its share of the applicable Borrowing available
to the Administrative Agent, then the applicable Lender and the Borrowers
severally agree to pay to the Administrative Agent forthwith on demand such
corresponding amount in immediately available funds 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 (A) in
the case of a payment to be made by such Lender, the greater of the Federal
Funds Rate and a rate determined by the Administrative Agent in accordance with
banking industry rules on interbank compensation, plus any administrative,
processing or similar fees customarily charged by the Administrative Agent in
connection with the foregoing, and (B) in the case of a payment to be made
by the Borrowers, the interest rate applicable to 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 Borrowing to the Administrative Agent, then the amount so paid shall
constitute such Lender’s Loan included in such Borrowing.  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.

 

(ii)           Payments by Borrower; Presumptions
by Administrative Agent.  Unless the
Administrative Agent shall have received notice from the Borrowers prior to the
date on which any payment is due to the Administrative Agent for the account of
the Lenders hereunder that the Borrowers 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 the amount due. 
In such event, if the Borrowers have not in fact made such payment, then
each of the Lenders severally agrees to repay to the Administrative Agent
forthwith on demand the amount so distributed to such Lender, in immediately
available funds 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 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 Borrowers with respect
to any amount owing under this subsection (b) shall be conclusive,
absent manifest error.

 

26

 

(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 Credit Extension set forth in Article IV
are not satisfied or waived in accordance with the terms hereof, the
Administrative Agent shall return such funds (in like funds as received from
such Lender) to such Lender, without interest.

 

(d)           Obligation
of the Lenders Several.  The
obligations of the Lenders hereunder to make Loans and to make payments
pursuant to Section 10.04(c) are several and not joint.  The failure of any Lender to make any Loan,
to fund any such participation or to make any payment under Section 10.04(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 10.04(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 Lender that
it has obtained or will obtain the funds for any Loan in any particular place
or manner.

 

(f)            Allocation
of Funds.  If at any time
insufficient funds are received by or are available to the Administrative Agent
to pay fully all amounts of principal, interest and fees then due hereunder,
such funds shall be applied (i) first, toward costs and expenses
(including all reasonable fees, expenses and disbursements of any law firm or
other counsel, to the extent payable 
pursuant to Section 10.04, and amounts payable under Article III)
incurred by the Administrative Agent and each Lender, (ii) second,
toward repayment of interest and fees then due hereunder, ratably among the
parties entitled thereto in accordance with the amounts of interest and fees
then due to such parties, and (iii) third, toward repayment of
principal then due hereunder, ratably among the parties entitled thereto in
accordance with the amounts of principal then due to such parties.

 

2.12        Sharing of Payments By Lenders.

 

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
the Loans made by it resulting in such Lender’s receiving payment of a
proportion of the aggregate amount of such Loans or participations and accrued
interest thereon greater than its pro rata share thereof as provided herein,
then the Lender receiving such greater proportion shall (a) notify the Administrative
Agent of such fact, and (b) purchase (for cash at face value)
participations in the Loans 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 or
subparticipations are purchased and all or any portion of the payment giving
rise thereto is recovered, such participations or subparticipations shall be
rescinded and the purchase price restored to the extent of such recovery,
without interest; and

 

(ii)           the provisions of this Section shall
not be construed to apply to (x) any payment made by the Borrowers
pursuant to and in accordance with the express terms of this Credit Agreement
or (y) any payment obtained by a Lender as consideration for the
assignment of or sale of a participation in any of its Loans to any assignee, other
than to the Borrowers or any of their Subsidiaries (as to which the provisions
of this Section shall apply).

 

27

 

Each
Loan Party 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 such
Loan Party rights of setoff and counterclaim with respect to such participation
as fully as if such Lender were a direct creditor of such Loan Party in the
amount of such participation.

 

2.13        Evidence of Debt.

 

The
Credit Extensions made by each Lender shall be evidenced by one or more
accounts or records maintained by such Lender and by the Administrative Agent
in the ordinary course of business.  The
accounts or records maintained by the Administrative Agent and each Lender
shall be conclusive absent manifest error of the amount of the Credit
Extensions made by the Lenders to the Borrowers and the interest and payments
thereon.  Any failure to so record or any
error in doing so shall not, however, limit or otherwise affect the obligation
of the Borrowers hereunder to pay any amount owing with respect to the
Obligations.  In the event of any
conflict between the accounts and records maintained by any Lender and the
accounts and records of the Administrative Agent in respect of such matters,
the accounts and records of the Administrative Agent shall control in the
absence of manifest error.  Upon the
request of any Lender made through the Administrative Agent, the Borrowers
shall execute and deliver to the Administrative Agent a Revolving Note for such
Lender, which shall evidence such Lender’s Loans in addition to such accounts
or records.  Each Lender may attach
schedules to its Revolving Note and endorse thereon the date, Type (if
applicable), amount and maturity of its Loans and payments with respect
thereto.

 

2.14        Joint and Several Liability.

 

(a)           Each
Borrower accepts joint and several liability hereunder in consideration of the
financial accommodation to be provided by the Administrative Agent and the
Lenders under this Credit Agreement and the other Loan Documents, for the
mutual benefit, directly and indirectly, of each Borrower and in consideration
of the undertakings of each Borrower to accept joint and several liability for
the obligations of each Borrower.

 

(b)           Each
Borrower shall be jointly and severally liable for all Obligations (whether or
not borrowed by a Borrower), regardless of which Borrower actually receives Credit
Extensions hereunder or the amount of such Credit Extensions received or the
manner in which the Administrative Agent or any Lender accounts for such Credit
Extensions on its books and records. 
Each Borrower’s obligations with respect to Credit Extensions made to
it, and each Borrower’s obligations arising as a result of the joint and
several liability of such Borrower hereunder, with respect to Credit Extensions
made to and other Obligations owing by the other Borrowers hereunder, shall be
separate and distinct obligations, but all such obligations shall be primary
obligations of each Borrower.

 

(c)           Each
Borrower’s obligations arising as a result of the joint and several liability
of such Borrower hereunder with respect to Credit Extensions made to and other
Obligations owing by the other Borrowers hereunder shall, to the fullest extent
permitted by law, be unconditional irrespective of (i) the validity or
enforceability, avoidance or subordination of the obligations of any other
Borrower or of any promissory note or other document evidencing all or any part
of the obligations of any other Borrower, (ii) the absence of any attempt
to collect the Obligations from any other Borrower, any other guarantor, or any
other security therefor, or the absence of any other action to enforce the
same, (iii) the waiver, consent, extension, forbearance or granting of any
indulgence by the Administrative Agent or any Lender with respect to any
provision of any instrument evidencing the obligations of any other Borrower,
or any part thereof, or any other agreement now or hereafter executed by any
other Borrower and delivered to the Administrative Agent or any Lender, (iv) the
Administrative Agent’s or any Lender’s election, in any proceeding instituted
under the Bankruptcy Code, of the application of Section 1111(b)(2) of
the 

 

28

 

Bankruptcy
Code, (v) any borrowing or grant of a security interest by any other
Borrower, as Debtor In Possession under Section 364 of the Bankruptcy
Code, (vi) the disallowance of all or any portion of the Administrative
Agent’s or any Lender’s claim(s) for the repayment of the obligations of
any other Borrower under Section 502 of the Bankruptcy Code, or (vii) any
other circumstances which might constitute a legal or equitable discharge or
defense of a guarantor or of any other Borrower.  With respect to each Borrower’s obligations
arising as a result of the joint and several liability of such Borrower
hereunder with respect to Credit Extensions made to the other Borrowers
hereunder, such Borrower waives, until the Obligations shall have been paid in
full (excluding contingent indemnification obligations that shall survive the
termination of this Credit Agreement) and this Credit Agreement and the other
Loan Documents shall have been terminated, any right to enforce any right of
subrogation or any remedy which the Administrative Agent or any Lender now has
or may hereafter have against such Borrower and any endorser or any guarantor
of all or any part of the Obligations.

 

(d)           Upon
the occurrence and during the continuation of any Event of Default, the
Administrative Agent and the Lenders may proceed directly and at once, without
notice, against any Borrower to collect and recover the full amount, or any
portion of the Obligations, without first proceeding against any other Borrower
or any other Person.  Each Borrower
consents and agrees that the Administrative Agent and the Lenders shall be
under no obligation to marshal any assets in favor of any Borrower or against
or in payment of any or all of the Obligations.

 

ARTICLE III

 

TAXES, YIELD PROTECTION AND ILLEGALITY

 

3.01        Taxes.

 

(a)           Payments Free of Taxes; Obligation to Withhold;
Payments on Account of Taxes.  (i) Any
and all payments by or on account of any obligation of the Borrowers hereunder
or under any other Loan Document shall to the extent permitted by applicable
Laws be made free and clear of and without reduction or withholding for any
Taxes.  If, however, applicable Laws
require the Borrowers or the Administrative Agent to withhold or deduct any
Tax, such Tax shall be withheld or deducted in accordance with such Laws as
determined by the Borrowers or the Administrative Agent, as the case may be,
upon the basis of the information and documentation to be delivered pursuant to
subsection (e) below.

 

(ii)           If the Borrowers or the
Administrative Agent shall be required by the Code to withhold or deduct any
Taxes, including, but not limited to, both United States Federal backup
withholding and any withholding taxes, from any payment, then (A) the
Administrative Agent shall withhold or make such deductions as are determined
by the Administrative Agent to be required based upon the information and
documentation it has received pursuant to subsection (e) below, (B) the
Administrative Agent shall timely pay the full amount withheld or deducted to
the relevant Governmental Authority in accordance with the Code, and (C) to
the extent that the withholding or deduction is made on account of Indemnified
Taxes or Other Taxes, the sum payable by the Borrowers shall be increased as
necessary so that after any required withholding or the making of all required
deductions (including deductions applicable to additional sums payable under
this Section) the Administrative Agent or Lender receives an amount equal to
the sum it would have received had no such Indemnified Taxes or Other Taxes
been due.

 

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

 

29

 

(c)           Tax
Indemnifications.  (i) Without
limiting the provisions of subsection (a) or (b) above, the Borrowers
shall, and do hereby, indemnify the Administrative Agent and each Lender, and
shall make payment in respect thereof within 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) withheld or deducted by the Borrowers or the Administrative
Agent or paid by the Administrative Agent or such 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.  The Borrowers shall also, and
do hereby, indemnify the Administrative Agent, and shall make payment in
respect thereof within 10 days after demand therefor, for any amount which a
Lender for any reason fails to pay indefeasibly to the Administrative Agent as
required by clause (ii) of this subsection.  A certificate as to the amount of any such
payment or liability delivered to the Borrowers by a Lender (with a copy to the
Administrative Agent), or by the Administrative Agent on its own behalf or on
behalf of a Lender, shall be conclusive absent manifest error.

 

(ii)           Without limiting the provisions of
subsection (a) or (b) above, each Lender shall, and does hereby,
indemnify the Borrowers and the Administrative Agent, and shall make payment in
respect thereof within 10 days after demand therefor, against any and all Taxes
and any and all related losses, claims, liabilities, penalties, interest and
expenses (including the fees, charges and disbursements of any counsel for the
Borrowers or the Administrative Agent) incurred by or asserted against the
Borrowers or the Administrative Agent by any Governmental Authority as a result
of the failure by such Lender to deliver, or as a result of the inaccuracy,
inadequacy or deficiency of, any documentation required to be delivered by such
Lender to the Borrowers or the Administrative Agent pursuant to subsection
(e).  Each Lender hereby authorizes the
Administrative Agent to set off and apply any and all amounts at any time owing
to such Lender under this Credit Agreement or any other Loan Document against
any amount due to the Administrative Agent under this clause (ii).  The agreements in this clause (ii) shall
survive the resignation and/or replacement of the Administrative Agent, any
assignment of rights by, or the replacement of, a Lender, the termination of
the Aggregate Revolving Commitments and the repayment, satisfaction or
discharge of all other Obligations.

 

(d)           Evidence
of Payments.  Upon request by the
Borrowers or the Administrative Agent, as the case may be, after any payment of
Taxes by the Borrowers or the Administrative Agent to a Governmental Authority
as provided in this Section 3.01, the Borrowers shall deliver to
the Administrative Agent or the Administrative Agent shall deliver to the
Borrowers, as the case may be, the original or a certified copy of a receipt
issued by such Governmental Authority evidencing such payment, a copy of any
return required by Law to report such payment or other evidence of such payment
reasonably satisfactory to the Borrowers or the Administrative Agent, as the
case may be.

 

(e)           Status
of Lenders; Tax Documentation.  (i) Each
Lender shall deliver to the Borrowers and to the Administrative Agent, at the
time or times prescribed by applicable Laws or when reasonably requested by the
Borrowers or the Administrative Agent, such properly completed and executed
documentation prescribed by applicable Laws or by the taxing authorities of any
jurisdiction and such other reasonably requested information as will permit the
Borrowers or the Administrative Agent, as the case may be, to determine (A) whether
or not payments made hereunder or under any other Loan Document are subject to
Taxes, (B) if applicable, the required rate of withholding or deduction,
and (C) such Lender’s entitlement to any available exemption from, or
reduction of, applicable Taxes in respect of all payments to be made to such
Lender by the Borrowers pursuant to this Credit Agreement or otherwise to
establish such Lender’s status for withholding tax purposes in the applicable
jurisdiction.

 

30

 

(ii)           Without limiting the generality of
the foregoing, if any Borrower is resident for tax purposes in the United
States,

 

(A)          any Lender that is a “United States
person” within the meaning of Section 7701(a)(30) of the Code shall
deliver to such Borrower and the Administrative Agent executed originals of
Internal Revenue Service Form W-9 or such other documentation or
information prescribed by applicable Laws or reasonably requested by such
Borrower or the Administrative Agent as will enable such Borrower or the
Administrative Agent, as the case may be, to determine whether or not such
Lender is subject to backup withholding or information reporting requirements;
and

 

(B)           each Foreign Lender that is entitled
under the Code or any applicable treaty to an exemption from or reduction of
withholding tax with respect to payments hereunder or under any other Loan
Document shall deliver to such 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 Credit Agreement
(and from time to time thereafter upon the request of such Borrower or the
Administrative Agent, but only if such Foreign Lender is legally entitled to do
so), whichever of the following is applicable:

 

(I)            executed originals of Internal Revenue Service Form W-8BEN
claiming eligibility for benefits of an income tax treaty to which the United
States is a party,

 

(II)           executed originals of Internal Revenue Service Form W-8ECI,

 

(III)         executed originals of Internal Revenue Service Form W-8IMY
and all required supporting documentation,

 

(IV)         in the case of a Foreign Lender claiming the
benefits of the exemption for portfolio interest under section 881(c) of
the Code, (x) 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 such 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 (y) executed originals of  Internal Revenue Service Form W-8BEN, or

 

(V)           executed originals of any other form prescribed by
applicable Laws as a basis for claiming exemption from or a reduction in United
States Federal withholding tax together with such supplementary documentation
as may be prescribed by applicable Laws to permit such Borrower or the
Administrative Agent to determine the withholding or deduction required to be
made.

 

(iii)          Each Lender shall promptly (A) notify
such Borrower and the Administrative Agent of any change in circumstances which
would modify or render invalid any claimed exemption or reduction, and (B) take
such steps as shall not be materially disadvantageous to it, in the reasonable
judgment of such Lender, and as may be reasonably necessary (including the
re-designation of its Lending Office) to avoid any requirement of applicable
Laws of any jurisdiction that such Borrower or the Administrative Agent make
any withholding or deduction for taxes from amounts payable to such Lender.

 

31

 

(f)            Treatment
of Certain Refunds.  Unless required
by applicable Laws, at no time shall the Administrative Agent have any
obligation to file for or otherwise pursue on behalf of a Lender or have any
obligation to pay to any Lender, any refund of Taxes withheld or deducted from
funds paid for the account of such Lender. 
If the Administrative Agent or any 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 incurred by the Administrative Agent
or such 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 or such Lender, agree 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 or such Lender in the event
the Administrative Agent or such Lender is required to repay such refund to
such Governmental Authority.  This
subsection shall not be construed to require the Administrative Agent or any
Lender to make available its tax returns (or any other information relating to
its taxes that it deems confidential) to the Borrowers or any other Person.

 

3.02        Illegality.  If any Change in Law makes it unlawful, or
any Governmental Authority asserts that it is unlawful, for any Lender or its
applicable Lending Office to make, maintain or fund Eurodollar Rate Loans, or
to determine or charge interest rates based upon the Eurodollar Rate, or any
Governmental Authority has imposed material restrictions on the authority of
such Lender to purchase or sell, or to take deposits of, Dollars in the London
interbank market, then, on notice thereof by such Lender to the Borrowers
through the Administrative Agent, any obligation of such Lender to make or
continue Eurodollar Rate Loans or to convert Base Rate Loans to Eurodollar Rate
Loans shall be suspended until such Lender notifies the Administrative Agent
and the Borrowers that the circumstances giving rise to such determination no
longer exist.  Upon receipt of such
notice, the Borrowers shall, upon demand from such Lender (with a copy to the
Administrative Agent), prepay or, if applicable, convert all Eurodollar Rate
Loans of such Lender to Base Rate Loans, either on the last day of the Interest
Period therefor, if such Lender may lawfully continue to maintain such
Eurodollar Rate Loans to such day, or immediately, if such Lender may not
lawfully continue to maintain such Eurodollar Rate Loans.  Upon any such prepayment or conversion, the Borrowers
shall also pay accrued interest on the amount so prepaid or converted.

 

3.03        Inability to Determine Rates.  If the Required Lenders reasonably determine
that for any reason in connection with any request for a Eurodollar Rate Loan
or a conversion to or continuation thereof that (a) Dollar deposits are
not being offered to banks in the London interbank eurodollar market for the
applicable amount and Interest Period of such Eurodollar Rate Loan, (b) adequate
and reasonable means do not exist for determining the Eurodollar Base Rate for
any requested Interest Period with respect to a proposed Eurodollar Rate Loan,
or (c) the Eurodollar Base Rate for any requested Interest Period with
respect to a proposed Eurodollar Rate Loan does not adequately and fairly
reflect the cost to such Lenders of funding such Loan, the Administrative Agent
will promptly so notify the Borrowers and each Lender.  Thereafter, the obligation of the Lenders to
make or maintain Eurodollar Rate Loans shall be suspended until the Administrative
Agent (upon the instruction of the Required Lenders) revokes such notice.  Upon receipt of such notice, the Borrowers
may revoke any pending request for a Borrowing of, conversion to or
continuation of Eurodollar Rate Loans or, failing that, will be deemed to have
converted such request into a request for a Borrowing of Base Rate Loans in the
amount specified therein.

 

3.04        Increased Costs; Reserves on
Eurodollar Rate Loans.

 

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

 

32

 

(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 Eurodollar Rate);

 

(ii)           subject any Lender to any tax of any
kind whatsoever with respect to this Credit Agreement or any Eurodollar Rate
Loan made by it, or change the basis of taxation of payments to such Lender in
respect thereof (except for Indemnified Taxes or Other Taxes covered by Section 3.01
and the imposition of, or any change in the rate of, any Excluded Tax payable
by such Lender); or

 

(iii)          impose on any Lender or the London
interbank market any other condition, cost or expense affecting this Credit
Agreement or Eurodollar Rate Loans made by such Lender;

 

and
the result of any of the foregoing shall be to increase the cost to such Lender
of making or maintaining any Eurodollar Rate Loan (or of maintaining its
obligation to make any such Loan), or to increase the cost to such Lender, or
to reduce the amount of any sum received or receivable by such Lender hereunder
(whether of principal, interest or any other amount) then, upon request of such
Lender, the Borrowers will pay to such Lender such additional amount or amounts
as will compensate such Lender for such additional costs incurred or reduction
suffered.

 

(b)           Capital
Requirements.  If any Lender
determines that any Change in Law affecting such Lender or any Lending Office
of such Lender or such 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 capital or on the capital of such Lender’s holding company, if
any, as a consequence of this Credit Agreement, the Revolving Commitments of
such Lender or the Loans made by such Lender, to a level below that which such
Lender or such Lender’s holding company could have achieved but for such Change
in Law (taking into consideration such Lender’s policies and the policies of
such Lender’s holding company with respect to capital adequacy), then from time
to time the Borrowers will pay to such Lender such additional amount or amounts
as will compensate such Lender or such Lender’s holding company for any such
reduction suffered.

 

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

 

(d)           Delay
in Requests.  Failure or delay on the
part of any Lender to demand compensation pursuant to the foregoing provisions
of this Section shall not constitute a waiver of such Lender’s right to
demand such compensation, provided that the Borrowers shall not be required to
compensate a Lender pursuant to the foregoing provisions of this Section for
any increased costs incurred or reductions suffered more than three months
prior to the date that such Lender notifies the Borrowers of the Change in Law
giving rise to such increased costs or reductions and of such Lender’s
intention to claim compensation therefor (except that, if the Change in Law
giving rise to such increased costs or reductions is retroactive, then the
three-month period referred to above shall be extended to include the period of
retroactive effect thereof).

 

33

 

3.05        Compensation for Losses.  Upon demand of any Lender (with a copy to the
Administrative Agent) from time to time, the Borrowers shall promptly
compensate such Lender for and hold such Lender harmless from any loss, cost or
expense incurred by it as a result of:

 

(a)           any continuation, conversion, payment
or prepayment of any Loan other than a Base Rate Loan on a day other than the
last day of the Interest Period for such Loan (whether voluntary, mandatory,
automatic, by reason of acceleration, or otherwise);

 

(b)           any failure by the Borrowers (for a
reason other than the failure of such Lender to make a Loan) to prepay, borrow,
continue or convert any Loan other than a Base Rate Loan on the date or in the
amount notified by the Borrowers; or

 

(c)           any assignment of a Eurodollar Rate
Loan on a day other than the last day of the Interest Period therefor as a
result of a request by the Borrowers pursuant to Section 10.13;

 

including
any loss or expense arising from the liquidation or reemployment of funds
obtained by it to maintain such Loan or from fees payable to terminate the
deposits from which such funds were obtained.

 

For
purposes of calculating amounts payable by the Borrowers to the Lenders under
this Section 3.05, each Lender shall be deemed to have funded each
Eurodollar Rate Loan made by it at the Eurodollar Base Rate used in determining
the Eurodollar Rate for such Loan by a matching deposit or other borrowing in
the London interbank eurodollar market for a comparable amount and for a
comparable period, whether or not such Eurodollar Rate Loan was in fact so funded.

 

3.06        Mitigation Obligations; Replacement
of Lenders.

 

(a)           Designation
of a Different Lending Office.  If any
Lender requests compensation under Section 3.04, or any Borrower is
required to pay any additional amount to any Lender or any Governmental Authority
for the account of any Lender pursuant to Section 3.01, or if any
Lender gives a notice pursuant to Section 3.02, then such Lender
shall, as applicable, 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 reasonable judgment of such Lender, such designation or assignment (i) would
eliminate or reduce amounts payable pursuant to Section 3.01 or 3.04,
as the case may be, in the future, or eliminate the need for the notice
pursuant to Section 3.02, as applicable, and (ii) in each
case, 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 and documented 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 3.04, or if any Borrower is required to
pay any additional amount to any Lender or any Governmental Authority for the
account of any Lender pursuant to Section 3.01, the Borrowers may
replace such Lender in accordance with Section 10.13.

 

3.07        Survival.  All of the Borrowers’ obligations under this Article III
shall survive termination of the Aggregate Revolving Commitments, repayment of
all other Obligations hereunder and resignation of the Administrative Agent.

 

34

 

ARTICLE IV

 

CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

 

4.01        Conditions to Initial Credit Extensions.

 

The
obligation of each Lender to make its initial Credit Extension hereunder is
subject to satisfaction of the following conditions precedent:

 

(a)           Executed Loan Documents.  The Administrative Agent’s receipt of
counterparts of this Credit Agreement, the Revolving Notes requested by the
Lenders and the Guarantee Agreement, in each case, dated as of the Closing
Date, duly executed by a Responsible Officer of each Loan Party party thereto
and by each Lender party thereto, and in form and substance satisfactory to the
Administrative Agent and the Lenders.

 

(b)           Organization Documents, Etc.  The Administrative Agent’s receipt of a duly
executed certificate of a Responsible Officer of each Loan Party, in form and
substance satisfactory to the Administrative Agent and the Lenders, attaching
each of the following documents and certifying that each is true, correct and
complete and in full force and effect as of the Closing Date:

 

(i)            Charter Documents.  Copies of its articles or certificate of
organization or formation, certified to be true, correct and complete as of a
recent date by the appropriate Governmental Authority of the jurisdiction of
its organization or formation;

 

(ii)           Bylaws.  Copies of its bylaws, operating agreement or
partnership agreement;

 

(iii)          Resolutions.  Copies of its resolutions approving and
adopting the Loan Documents to which it is party, the transactions contemplated
therein, and authorizing the execution and delivery thereof;

 

(iv)          Incumbency.  Incumbency certificates identifying the
Responsible Officers of such Loan Party that are authorized to execute Loan
Documents and to act on such Loan Party’s behalf in connection with the Loan
Documents; and

 

(v)           Good Standing Certificates.  Certificates of good standing or the
equivalent from its jurisdiction of organization or formation and from each
other jurisdiction where failure to be in good standing would reasonably be
expected to have a Material Adverse Effect, in each case certified as of a
recent date by the appropriate Governmental Authority.

 

(c)           Opinions of Counsel.  The Administrative Agent’s receipt of duly
executed opinions of counsel to the Loan Parties, dated as of the Closing Date,
in form and substance satisfactory to the Administrative Agent and the Lenders.

 

(d)           Financial Statements.  The Administrative Agent’s receipt of each of
the following:

 

(i)            The audited consolidated
balance sheets of (A) the Consolidated Group and (B) Automatic
Laundry and its Subsidiaries, in each case for the fiscal years ended 

 

35

 

December 31,
2005 and December 31, 2006, and the related consolidated statements of
income or operations, shareholders’ equity and cash flows for such fiscal years
(including the notes thereto), prepared in accordance with GAAP; and

 

(ii)           (A) The audited consolidated and
consolidating financial statements of the Consolidated Group and (B) the
unaudited consolidated financial statements of Automatic Laundry and its
Subsidiaries, in each case for the fiscal quarters ended December 31,
2007, and the related consolidated and consolidating statements of income or
operations, shareholders’ equity and cash flows for such fiscal quarters,
prepared in accordance with GAAP.

 

(e)           Officer Certificates.  The Administrative Agent’s receipt of a
certificate or certificates of a Responsible Officer of the Parent Borrower,
dated as of the Closing Date, in form and substance satisfactory to the
Administrative Agent, certifying each of the following:

 

(i)            Consents.  No material consents, material licenses or
material approvals are required in connection with the execution, delivery and
performance by any Loan Party of the Loan Documents to which it is a party,
other than as are in full force and effect and, to the extent requested by the
Administrative Agent, are attached thereto;

 

(ii)           Material Adverse Effect.  There has been no event or circumstance since
the date of the audited financial statements for the fiscal year ending December 31,
2007 that has had or would reasonably be expected to have, either individually
or in the aggregate, a Material Adverse Effect;

 

(iii)          Financial Statements.  The annual and quarterly financial statements
of the Consolidated Group delivered to the Administrative Agent pursuant to Section 4.01(d) hereof
(A) were prepared in accordance with GAAP consistently applied throughout
the period covered thereby, except as otherwise expressly noted therein, (B) fairly
present the financial condition of the Consolidated Group as of the date
thereof and the results of operations for the period covered thereby in
accordance with GAAP consistently applied throughout the period covered
thereby, except as otherwise expressly noted therein (and with respect to such
quarterly statements, subject to the absence of footnotes and to normal year
end audit adjustments) and (C) show all material indebtedness and other
liabilities, direct or contingent, of the Consolidated Group as of the date
thereof, including liabilities for taxes, material commitments and
Indebtedness; and

 

(iv)          Financial Covenant Calculations.  The calculations demonstrating that as of the
Closing Date (A) the Consolidated Total Leverage Ratio is not greater than
4.15:1.0 and (B) the Consolidated Senior Secured Leverage Ratio is not
greater than 2.15:1.0, in each case after giving effect on a Pro Forma Basis to
the Automatic Laundry Acquisition and the initial Credit Extensions hereunder.

 

(f)            Acquisition of Automatic Laundry.  The Administrative Agent’s receipt of i) an
officer’s certificate in form an substance reasonably satisfactory to the
Administrative Agent with a certified copy of (A) the Automatic Laundry
Acquisition Agreement and (B) the Seller Subordinated Note, in each case
with all amendments, modifications, supplements and attachments, (ii) confirmation
that there have been no material modifications to the Automatic Laundry
Acquisition Agreement, except as approved by the Arranger, (iii) confirmation
that the Automatic Laundry Acquisition has 

 

36

 

been,
or contemporaneously with the closing and initial funding under this Credit
Agreement, will be consummated in accordance with the terms of the Automatic
Laundry Acquisition Agreement and in compliance in all material respects with
applicable Laws and regulatory approvals, and (iv) confirmation that the
purchase price is not greater than $116,500,000 without giving effect to any
purchase price adjustments.

 

(g)           [Reserved].

 

(h)           Original Credit Agreement.  The Administrative Agent’s receipt of
evidence, in form and substance reasonably satisfactory to the Administrative
Agent, that the Original Credit Agreement has been (or concurrently with the
Closing Date is being) terminated and all Liens securing obligations under the
Original Credit Agreement have been (or concurrently with the Closing Date are
being) released.

 

(i)            Senior Secured Credit Agreement.  The Administrative Agent’s receipt of a copy
of the Senior Secured Credit Agreement as originally executed and delivered,
together with all exhibits and schedules thereto, in form and substance
satisfactory to the Administrative Agent and the Lenders and certified by a
Responsible Officer of the Parent Borrower as true and complete.

 

(j)            Fees and Expenses.  All fees and expenses (including, unless
waived by the Administrative Agent, all reasonable fees, expenses and
disbursements of any law firm or other counsel to the extent payable pursuant
to the Loan Documents) required to be paid pursuant to the Fee Letter and this
Credit Agreement on or before the Closing Date shall have been paid.

 

Without
limiting the generality of the provisions of the last paragraph of Section 9.04,
for purposes of determining compliance with the conditions specified in this Section 4.01,
each Lender that has signed this Credit Agreement shall be deemed to have
consented to, approved or accepted or to be satisfied with, each document or
other matter required thereunder to be consented to or approved by or
acceptable or satisfactory to a Lender unless the Administrative Agent shall
have received notice from such Lender prior to the proposed Closing Date
specifying its objection thereto.

 

4.02        Conditions to all Credit Extensions.

 

The
obligation of each Lender to honor any Request for Credit Extension is subject
to the following conditions precedent:

 

(a)           The
representations and warranties of the Borrowers and each other Loan Party
contained in Article VI, any other Loan Document or any Loan Notice
furnished at any time under or in connection herewith or therewith, shall be
true and correct (i) to the extent such representation or warranty is
modified or qualified based on the terms “materially” or “material” or by
reference to the term “Material Adverse Effect”, in any respect and (ii) to
the extent such representation or warranty is not so modified or qualified, in
any material respect on and as of the date of such Credit Extension, except to
the extent that such representations and warranties specifically refer to an
earlier date, in which case they shall be true and correct (A) to the
extent such representation or warranty is modified or qualified based on the
terms “materially” or “material” or by reference to the term “Material Adverse
Effect”, in any respect and (B) to the extent such representation or
warranty is not so modified or qualified, in any material respect as of such
earlier date.

 

37

 

(b)           No Default or Event of Default shall
exist, or would result from such proposed Credit Extension or from the
application of the proceeds thereof.

 

(c)           The Administrative Agent shall have
received a Request for Credit Extension in accordance with the requirements
hereof.

 

Each
Request for Credit Extension submitted by any Borrower shall be deemed to be a
representation and warranty by all Borrowers that the conditions specified in Sections
4.02(a) and (b) have been satisfied on and as of the date
of the applicable Credit Extension.

 

ARTICLE V

 

REPRESENTATIONS AND WARRANTIES

 

The
Borrowers represent and warrant to the Lenders that:

 

5.01        Organization; Powers.  Each of the Parent Borrower and the
Subsidiaries are duly organized, validly existing and in good standing under
the laws of the jurisdiction of its organization, have all requisite corporate
power and authority to carry on its business as now conducted and as proposed
to be conducted and to execute, deliver and perform its obligations under each
Loan Document to which it is a party and, except where the failure to do so,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect, is qualified to do business in, and are in good
standing in, every jurisdiction where such qualification is required for the
conduct of its business.

 

5.02        Authorization; Enforceability.  The Transactions to be entered into by each
Loan Party have been duly authorized by all necessary corporate or other action
and, if required, stockholder action. 
This Credit Agreement has been duly executed and delivered by each of
the Borrowers and constitutes, and each other Loan Document to which any Loan
Party is to be a party, when executed and delivered by such Loan Party, will
constitute, a legal, valid and binding obligation of the Borrowers or such Loan
Party (as the case may be), enforceable in accordance with its terms, subject
to applicable bankruptcy, insolvency, reorganization, moratorium or other laws
affecting creditors’ rights generally and subject to general principles of equity,
regardless of whether considered in a proceeding in equity or at law.

 

5.03        Governmental Approvals; No Conflicts.  The Transactions (a) do not require any
consent or approval of, registration or filing with, or any other action by,
any Governmental Authority, except such as have been obtained or made and are
in full force and effect, (b) will not violate any requirement of Law
applicable to the Parent Borrower or any Subsidiary, (c) will not violate
or result in a default under any material indenture (including, without
limitation, the Senior Note Documents), material agreement or other material
instrument binding upon the Parent Borrower or any Subsidiary or their assets,
or give rise to a right thereunder to require any payment to be made by the
Parent Borrower or any Subsidiary or give rise to a right of, or result in,
termination, cancellation or acceleration of any obligation thereunder, and (d) will
not result in the creation or imposition of any Lien on any asset of the Parent
Borrower or any Subsidiary, except Liens created under the Loan Documents.

 

5.04        Financial Condition; No Material
Adverse Change.  (a) The
Parent Borrower has heretofore furnished to the Lenders its consolidated
balance sheet and consolidated statements of income, stockholders equity and
cash flows as of and for the fiscal years ended December 31, 2005, December 31,
2006 and December 31, 2007, reported on by PricewaterhouseCoopers LLP,
independent public accountants.  Such
financial statements present fairly, in all material respects, the financial
position and 

 

38

 

results
of operations and cash flows of the Consolidated Group as of such dates and for
such periods in accordance with GAAP consistently applied.

 

(b)           Except
as disclosed in the financial statements referred to above or the notes
thereto, none of the Parent Borrower or the Subsidiaries has, as of the Closing
Date, any material direct or contingent liabilities, unusual long term
commitments or unrealized losses.

 

(c)           No
event, change or condition has occurred that has had, or could reasonably be
expected to have, a materially adverse effect on the business, operations,
properties, assets, condition (financial or otherwise), liabilities or
prospects of the Parent Borrower and the Subsidiaries, taken as a whole,
whether or not covered by insurance, since December 31, 2007.

 

5.05        Properties.  (a) Each of the Parent Borrower and the
Subsidiaries has good title to, or valid leasehold interests in, all its real
and personal property material to its business, except for (i) minor
defects in title that do not interfere with its ability to conduct its business
as currently conducted or as proposed to be conducted or to utilize such
properties for their intended purposes and (ii) leaseholds subject to all
superior title matters and all matters which encumber the landlord’s or ground
lessor’s interest.

 

(b)           Each
of the Parent Borrower and the Subsidiaries owns, or is licensed to use, all
trademarks, tradenames, copyrights, patents and other intellectual property
material to its business, and the use thereof by the Parent Borrower and the
Subsidiaries does not infringe upon the rights of any other Person, except for
any such infringements that, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

 

(c)           Schedule
5.05 sets forth the address of each real property that is owned or leased
by the Parent Borrower or any Subsidiary (other than addresses of the locations
to which the Laundry Facility Agreements relate) as of the Closing Date.

 

5.06        Litigation and Environmental Matters.  (a) There are no actions, suits or
proceedings by or before any arbitrator or Governmental Authority pending
against or, to the knowledge of the Parent Borrower, threatened against the
Parent Borrower or any of its Subsidiaries (i) as to which there is a
reasonable possibility of an adverse determination and that, if adversely
determined, could reasonably be expected, individually or in the aggregate, to
result in a Material Adverse Effect or (ii) that involve any of the Loan
Documents or the Transactions.

 

(b)           Except
with respect to any other matters that, individually or in the aggregate, could
not reasonably be expected to result in a Material Adverse Effect, neither the
Parent Borrower nor any Subsidiary (i) has failed to comply with any
Environmental Law or to obtain, maintain or comply with any permit, license or
other approval required under any Environmental Law, (ii) has become
subject to any Environmental Liability, (iii) has received notice of any
claim with respect to any Environmental Liability or (iv) knows of any
basis for any Environmental Liability.

 

5.07        Compliance with Laws and Agreements.

 

(a)           Each
of the Parent Borrower and the Subsidiaries is in compliance with all
requirements of Law applicable to it or its property and all indentures,
agreements and other instruments binding upon it or its property, except where
the failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect.

 

39

 

(b)           The
loans and other obligations under this Credit Agreement are permitted under the
Senior Note Indenture (and the other Senior Note Documents to the extent such
documents are in effect).

 

5.08        Use of Proceeds.  The proceeds of the Revolving Loans made on
the Closing Date shall be used for working capital and lawful corporate
purposes (including Permitted Acquisitions and capital expenditures).  No part of the proceeds of any Loan will be
used, whether directly or indirectly, for any purpose that entails a violation
of any of the Regulations of the FRB, including Regulations T, U and X.

 

5.09        Taxes.  Each of the Parent Borrower and the
Subsidiaries has timely filed or caused to be filed all Tax returns and reports
required to have been filed and has paid or caused to be paid all Taxes
required to have been paid by it, except (a) any Taxes that are being
contested in good faith by appropriate proceedings and for which the Parent
Borrower or such Subsidiary, as applicable, has set aside on its books adequate
reserves or (b) to the extent that the failure to do so could not
reasonably be expected to result in a Material Adverse Effect.

 

5.10        ERISA.  No ERISA Event has occurred or is reasonably
expected to occur that, when taken together with all other such ERISA Events
for which liability is reasonably expected to occur, could reasonably be
expected to result in a Material Adverse Effect.  The present value of all accumulated benefit
obligations under each Plan (based on the assumptions used for purposes of
Statement of Financial Accounting Standards No. 87) did not, as of the
date of the most recent financial statements reflecting such amounts, exceed by
more than $250,000 the fair market value of the assets of such Plan, and the
present value of all accumulated benefit obligations of all underfunded Plans
(based on the assumptions used for purposes of Statement of Financial
Accounting Standards No. 87) did not, as of the date of the most recent
financial statements reflecting such amounts, exceed by more than $250,000 the
fair market value of the assets of all such underfunded Plans.

 

5.11        Disclosure.  The Borrowers have disclosed to the
Administrative Agent all agreements, instruments and corporate or other
restrictions to which the Parent Borrower or any Subsidiary is subject, and all
other matters known to any of them, that, individually or in the aggregate,
could reasonably be expected to result in a Material Adverse Effect.  No reports, financial statements,
certificates or other information furnished by or on behalf of any Loan Party
by its agents to the Administrative Agent in connection with the negotiation of
this Credit Agreement or any other Loan Document or delivered hereunder or
thereunder (as modified or supplemented by other information so furnished)
contains, when taken as a whole, any material misstatement of fact or omits to
state any material fact necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading; provided that,
with respect to projected financial information, the Parent Borrower represents
only that such information was prepared in good faith based upon assumptions
believed to be reasonable at the time delivered and, if such projected
financial information was delivered prior to the Closing Date, as of the
Closing Date.

 

5.12        Subsidiaries.  Schedule 5.12 sets forth the name of,
and the ownership interest of the Parent Borrower in, each Subsidiary of the
Parent Borrower and identifies each Subsidiary that is a Loan Party, in each
case as of the Closing Date.

 

5.13        Insurance.  Schedule 5.13 sets forth a description
of all insurance maintained by or on behalf of the Parent Borrower and the
Subsidiaries as of the Closing Date.  As
of the Closing Date, all premiums in respect of such insurance have been
paid.  The Borrowers believe that the
insurance maintained by or on behalf of the Parent Borrower and the
Subsidiaries is adequate.

 

5.14        Labor Matters.  As of the Closing Date, there are no strikes,
lockouts or slowdowns against the Parent Borrower or any Subsidiary pending or,
to the knowledge of the Parent Borrower, 

 

40

 

threatened.  The hours worked by and payments made to
employees of the Parent Borrower and the Subsidiaries have not been in
violation of the Fair Labor Standards Act or any other applicable Federal,
state, local or foreign law dealing with such matters.  All payments of a material amount due from
the Parent Borrower or any Subsidiary, or for which any reasonably foreseeable
claim may be made against the Parent Borrower or any Subsidiary, on account of
wages and employee health and welfare insurance and other benefits (other than
routine claims for benefits), have been paid or accrued as a liability on the
books of the Parent Borrower or such Subsidiary.  The consummation of the Transactions will not
give rise to any right of termination or right of renegotiation on the part of
any union under any collective bargaining agreement to which the Parent
Borrower or any Subsidiary is bound.

 

5.15        Solvency.  Immediately after the consummation of the
Transactions to occur on the Closing Date, (a) the fair value of the
assets of the Loan Parties, taken as a whole, at a fair valuation, will exceed
their debts and liabilities, subordinated, contingent or otherwise, (b) the
present fair saleable value of the property of the Loan Parties, taken as a
whole, will be greater than the amount that will be required to pay the
probable liability of their debts and other liabilities, subordinated,
contingent or otherwise, as such debts and other liabilities become absolute
and matured, (c) the Loan Parties will be able to pay their debts and
liabilities, subordinated, contingent or otherwise, as such debts and
liabilities become absolute and matured and (d) the Loan Parties will not
have unreasonably small capital with which to conduct the business in which
they are engaged as such business is now conducted and is proposed to be
conducted following the Closing Date.

 

5.16        Margin Regulations; Investment
Company Act.

 

(a)           The
Loan Parties are not engaged and will not engage, principally or as one of
their important activities, in the business of purchasing or carrying “margin
stock” (within the meaning of Regulation U issued by the FRB), or extending
credit for the purpose of purchasing or carrying margin stock.

 

(b)           None
of the Loan Parties, any Person “controlling” (as such term is defined under
the Investment Company Act of 1940) a Loan Party, or any Subsidiary is or is
required to be registered as an “investment company” under the Investment
Company Act of 1940.

 

5.17        Taxpayer Identification Number; Other
Identifying Information.

 

The
true and correct U.S. taxpayer identification number, if any, of each Borrower
is set forth on Schedule 5.17.

 

ARTICLE VI

 

AFFIRMATIVE COVENANTS

 

Until
the Revolving Commitments have expired or been terminated and the principal of
and interest on each Loan and all fees, expenses and other amounts payable
under any Loan Document shall have been paid in full, the Borrowers covenant
and agree with the Lenders that:

 

6.01        Financial Statements and Other
Information.  The
Borrowers will furnish to the Administrative Agent on behalf of each Lender:

 

(a)           within 90 days after the end of each
fiscal year of the Parent Borrower, its audited consolidated balance sheet and
related statements of operations, stockholders’ equity and 

 

41

 

cash
flows as of the end of and for such year, setting forth in each case in
comparative form the figures for the previous fiscal year, all reported on by
PricewaterhouseCoopers LLP or other independent public accountants of
recognized national standing (without a “going concern” or like qualification
or exception and without any qualification or exception as to the scope of such
audit) to the effect that such consolidated financial statements present fairly
in all material respects the financial condition and results of operations of
the Consolidated Group on a consolidated basis in accordance with GAAP
consistently applied;

 

(b)           within 45 days after the end of each
of the first three fiscal quarters of each fiscal year of the Parent Borrower,
its consolidated balance sheet and related statements of operations,
stockholders’ equity and cash flows as of the end of and for such fiscal
quarter and the then elapsed portion of the fiscal year, setting forth in each
case in comparative form the figures for the corresponding period or periods of
(or, in the case of the balance sheet, as of the end of) the previous fiscal
year, all certified by a Financial Officer as presenting fairly in all material
respects the financial condition and results of operations of the Consolidated
Group on a consolidated basis in accordance with GAAP consistently applied,
subject to normal year-end audit adjustments and the absence of footnotes;

 

(c)           concurrently with any delivery of
financial statements under clause (a) or (b) above, a Compliance
Certificate of a Financial Officer (i) certifying as to whether a Default
has occurred and, if a Default has occurred, specifying the details thereof and
any action taken or proposed to be taken with respect thereto, (ii) setting
forth reasonably detailed calculations demonstrating compliance with Section 7.12
and (iii) stating whether any change in GAAP or in the application thereof
has occurred since the date of the Parent Borrower’s audited financial
statements referred to in Section 3.04 and, if any such change has
occurred, specifying the effect of such change on the financial statements
accompanying such certificate;

 

(d)           concurrently with any delivery of
financial statements under clause (a) above, a certificate of the
accounting firm that reported on such financial statements stating whether they
obtained knowledge during the course of their examination of such financial
statements of any Default under Section 7.12 and, if such knowledge
has been obtained, describing such Default (which certificate may be limited to
the extent required by accounting rules or guidelines);

 

(e)           within 45 days after the commencement
of each fiscal year of the Parent Borrower, a detailed consolidated budget for
such fiscal year (including a projected consolidated balance sheet and related
statements of projected operations and cash flow as of the end of and for such
fiscal year and setting forth the assumptions used for purposes of preparing
such budget) and, promptly when available, any significant revisions of such
budget;

 

(f)            promptly after the same become
publicly available, copies of all periodic and other reports, proxy statements
and other materials filed by the Parent Borrower or any Subsidiary with the SEC
or with any national securities exchange, as the case may be; and

 

(g)           promptly following any request
therefor, such other information regarding the operations, business affairs and
financial condition of the Parent Borrower or any Subsidiary, or compliance
with the terms of any Loan Document, as the Administrative Agent or any Lender
may reasonably request.

 

6.02        Notices of Material Events.  The Borrowers will furnish to the
Administrative Agent and each Lender prompt written notice of the following:

 

42

 

(a)           the occurrence of any Default;

 

(b)           the filing or commencement of any
action, suit or proceeding by or before any arbitrator or Governmental
Authority against or, to the knowledge of an executive officer or the Parent
Borrower or any Subsidiary or a Financial Officer, affecting the Borrowers or
any Affiliate thereof that, if adversely determined, could reasonably be
expected to result in a Material Adverse Effect;

 

(c)           the occurrence of any ERISA Event
that, alone or together with any other ERISA Events that have occurred, could
reasonably be expected to result in liability of the Parent Borrower and its
Subsidiaries in an aggregate amount exceeding $300,000; and

 

(d)           any other development that results
in, or could reasonably be expected to result in, a Material Adverse Effect.

 

Each
notice delivered under this Section shall be accompanied by a statement of
a Financial Officer or other executive officer of the Parent Borrower setting
forth the details of the event or development requiring such notice and any
action taken or proposed to be taken with respect thereto.

 

The
Loan Parties hereby acknowledge that the Administrative Agent will make
available to the Lenders materials and/or information provided by or on behalf
of the Loan Parties hereunder (collectively, the “Loan Party Materials”)
by posting the Loan Party Materials on IntraLinks or another similar electronic
system (the “Platform”) and that certain of the Lenders (each, a “Public
Lender”) may have personnel who do not wish to receive material non-public
information with respect to any of the Loan Parties or their respective
Affiliates, or the respective securities of any of the foregoing, and who may
be engaged in investment and other market-related activities with respect to
such Persons’ securities.  The Loan
Parties hereby agree that (1) all Loan Party Materials that are to be made
available to Public Lenders shall be clearly and conspicuously marked “PUBLIC”
(which, at a minimum, shall mean that the word “PUBLIC” shall appear
prominently on the first page thereof); (2) by marking the Loan Party
Materials “PUBLIC,” the Loan Parties shall be deemed to have authorized the
Administrative Agent and the Lenders to treat such Loan Party Materials as
either publicly available information or not material information (although it
may be sensitive and proprietary) with respect to the Loan Parties or their
securities for purposes of United States federal and state securities laws; (3) all
Loan Party Materials marked “PUBLIC” are permitted to be made available through
a portion of the Platform designated as “Public Side Information”; and (4) the
Administrative Agent shall be entitled to treat any Loan Party Materials that
are not designated “PUBLIC” as being suitable only for posting on a portion of
the Platform that is not marked as “Public Side Information”.

 

6.03        Information Regarding Loan Parties.  The Borrowers will furnish to the
Administrative Agent prompt written notice of any change (a) in any Loan
Party’s corporate name, (b) in the jurisdiction of incorporation or
organization of any Loan Party or (c) in any Loan Party’s organizational
identification number.

 

6.04        Existence; Conduct of Business.  The Parent Borrower will, and will cause each
Subsidiary to, do or cause to be done all things necessary to preserve, renew
and keep in full force and effect its legal existence and the rights, licenses,
permits, privileges, franchises, patents, copyrights, trademarks and trade
names material to the conduct of its business; provided that the foregoing
shall not prohibit any merger, consolidation, liquidation or dissolution
permitted under Section 7.03 or any sale, transfer, lease or other
disposition permitted under Section 7.05.

 

43

 

6.05        Payment of Obligations.  The Parent Borrower will, and will cause each
Subsidiary to, pay its Material Indebtedness and other material obligations,
including tax liabilities, before the same shall become delinquent or in
default, except where (a) the validity or amount thereof is being
contested in good faith by appropriate proceedings, (b) the Parent
Borrower or such Subsidiary has set aside on its books adequate reserves with
respect thereto in accordance with GAAP, (c) such contest effectively
suspends collection of the contested obligation and the enforcement of any Lien
securing such obligation and (d) the failure to make payment pending such
contest could not reasonably be expected to result in a Material Adverse
Effect.

 

6.06        Maintenance of Properties.  The Parent Borrower will, and will cause each
Subsidiary to, keep and maintain all property material to the conduct of its
business in good working order and condition, ordinary wear and tear excepted.

 

6.07        Insurance.  The Parent Borrower will, and will cause each
Subsidiary to, maintain, with financially sound and reputable insurance
companies insurance in such amounts (with no greater risk retention) and
against such risks as are customarily maintained by companies of established
repute engaged in the same or similar businesses operating in the same or
similar locations.  The Borrowers will
furnish to the Lenders, upon request of the Administrative Agent, information
in reasonable detail as to the insurance so maintained.

 

6.08        [Reserved].

 

6.09        Books and Records; Inspection and
Audit Rights.  The
Parent Borrower will, and will cause each Subsidiary to, keep proper books of
record and account in which full, true and correct entries are made of all
dealings and transactions in relation to its business and activities.  The Parent Borrower will, and will cause each
Subsidiary to, permit any representatives designated by the Administrative
Agent or any Lender, upon reasonable prior notice and during normal business
hours, to visit and inspect its properties, to examine and make extracts from
its books and records, and to discuss its affairs, finances and condition with
its officers and independent accountants, all at such reasonable times and as
often as reasonably requested; provided, however, that unless an Event of
Default has occurred and is continuing, the Borrowers shall not be responsible
for the cost of more than one such visit by the Administrative Agent per
calendar year.

 

6.10        Compliance with Laws.  The Parent Borrower will, and will cause each
of its Subsidiaries to, comply with all requirements of Law (including
Environmental Law) applicable to it or its property, except where the failure
to do so, individually or in the aggregate, could not reasonably be expected to
result in a Material Adverse Effect.

 

6.11        Use of Proceeds.  The proceeds of the Loans made on the Closing
Date shall be used for working capital and lawful corporate purposes (including
Permitted Acquisitions and capital expenditures).  No part of the proceeds of any Loan will be
used, whether directly or indirectly, for any purpose that entails a violation
of any of the Regulations of the Board, including Regulations T, U and X.

 

6.12        Guarantee Requirement.

 

(a)           Additional
Domestic Subsidiaries.  The Parent
Borrower will give prompt notice to the Administrative Agent of the formation
or acquisition of any Subsidiary after the Closing Date, and cause each
Domestic Subsidiary to become a Guarantor hereunder, and otherwise meet the
Guarantee Requirement hereunder, by execution and delivery of a supplement or
joinder agreement to the Guarantee Agreement within thirty days (30) of
formation or acquisition, together with certified copies of resolutions,
organizational documents, incumbency and officer’s certificates and legal
opinions, in form 

 

44

 

and
substance reasonably satisfactory to the Administrative Agent in each case
within thirty (30) days of formation or acquisition (or such longer period
agreed to by the Administrative Agent in its reasonable discretion).

 

(b)           Foreign
Subsidiaries.  The Parent Borrower
will not form or acquire Foreign Subsidiaries without the prior written consent
of the Administrative Agent and the Required Lenders.

 

6.13         [Reserved].

 

ARTICLE VII

 

NEGATIVE COVENANTS

 

Until
the Revolving Commitments have expired or been terminated and the principal of
and interest on each Loan and all fees, expenses and other amounts payable
under any Loan Document have been paid in full, the Borrowers covenant and
agree with the Lenders that:

 

7.01        Indebtedness; Certain Equity
Securities.  (a) 
The Parent Borrower will not, and will not permit any Subsidiary to, create,
incur, assume or permit to exist any Indebtedness, except:

 

(i)            Indebtedness created or existing
under this Credit Agreement and the other Loan Documents;

 

(ii)           Indebtedness created or existing
under the Senior Secured Loan Documents;

 

(iii)          Indebtedness existing on the date
hereof and set forth in Schedule 7.01 and extensions, renewals and
replacements of any such Indebtedness; provided that such extending,
renewal or replacement Indebtedness (A) shall not be Indebtedness of an
obligor that was not an obligor with respect to the Indebtedness being
extended, renewed or replaced, (B) shall not be in a principal amount that
exceeds the principal amount of Indebtedness being extended, renewed or
replaced (plus accrued interest and premium thereon and fees and
expenses related to such extensions, renewals and replacements thereof), (C) shall
not have an earlier maturity date or decreased weighted average life than the
Indebtedness being extended, renewed or replaced and (D) shall be
subordinated to the Obligations on the same terms as the Indebtedness being
extended, renewed or replaced;

 

(iv)          intercompany Indebtedness between and
among members of the Consolidated Group to the extent permitted by Section 7.04;
provided that Indebtedness of any Borrower to any Subsidiary (other than
another Borrower) and Indebtedness of any Loan Party to any Subsidiary that is
not a Loan Party shall be subordinated to the Obligations on terms reasonably
satisfactory to the Administrative Agent;

 

(v)           Guarantees by members of the
Consolidated Group in respect of Indebtedness otherwise permitted hereunder; provided
that Guarantees by the Parent Borrower or any Loan Party of Indebtedness of any
Subsidiary that is not a Loan Party shall be subject to Section 7.04,
(C) Guarantees permitted under this clause (v) shall be subordinated
to the Obligations of the applicable Subsidiary on the same terms as the
Indebtedness so Guaranteed is subordinated to the Obligations and (D) neither
the Senior Notes nor any Senior Notes Refinancing Indebtedness shall be
Guaranteed by any Subsidiary, unless such Subsidiary is a Loan Party that has
Guaranteed the Obligations pursuant to the Guarantee Agreement;

 

45

 

(vi)          Indebtedness of the Parent Borrower or
any Subsidiary incurred to finance the acquisition, construction or improvement
of any fixed or capital assets, including Capital Lease Obligations and any
Indebtedness assumed in connection with the acquisition of any such assets or
secured by a Lien on any such assets prior to the acquisition thereof, and
extensions, renewals and replacements of any such Indebtedness that do not
increase the outstanding principal amount thereof (plus accrued interest
and premium thereon); provided that (A) such Indebtedness is
incurred prior to or within 90 days after such acquisition or the completion of
such construction or improvement and (B) the aggregate principal amount of
Indebtedness permitted by this clause (vi) shall not exceed $10,000,000 at
any time outstanding;

 

(vii)         [Reserved];

 

(viii)        other unsecured Indebtedness in an
aggregate principal amount not exceeding $1,000,000 at any time outstanding; provided
that the aggregate principal amount of Indebtedness of the Subsidiaries that
are not Loan Parties permitted by this clause (viii) shall not exceed
$500,000 at any time outstanding;

 

(ix)           Indebtedness owed to any Person
(including obligations in respect of letters of credit for the benefit of such
Person) providing workers’ compensation, health, disability or other employee
benefits or property, casualty or liability insurance, pursuant to
reimbursement or indemnification obligations to such Person, in each case
incurred in the ordinary course of business;

 

(x)            Indebtedness of the Parent Borrower
or any Subsidiary in respect of performance bonds, bid bonds, appeal bonds,
surety bonds, performance and completion guarantees and similar obligations, in
each case provided in the ordinary course of business;

 

(xi)           Indebtedness in respect of Swap
Agreements permitted by Section 7.07;

 

(xii)          (A) the Senior Notes in an
aggregate principal amount not to exceed $225,000,000 and (B) Senior Notes
Refinancing Indebtedness; and

 

(xiii)         (A) the Seller Subordinated Note
in an initial aggregate principal amount not to exceed $10,000,000 and (B) Seller
Subordinated Note Refinancing Indebtedness; and

 

(b)           The
Parent Borrower will not, and will not permit any Subsidiary to, issue
preferred Equity Interests, except for (i) any preferred Equity Interest
issued pursuant to the Shareholders Rights Plan and (ii) any preferred
Equity Interest, the proceeds of which are used to prepay any amounts
outstanding under this Credit Agreement, the other Loan Documents and the
Senior Secured Loan Documents.

 

7.02        Liens.  The Parent Borrower will not, and will not
permit any Subsidiary to, create, incur, assume or permit to exist any Lien on
any property or asset now owned or hereafter acquired by it, or assign or sell
any income or revenues (including accounts receivable) or rights in respect of
any thereof, except:

 

(a)           Liens created or existing under the
Senior Secured Loan Documents;

 

(b)           Permitted Encumbrances;

 

46

 

(c)           any Lien on any property or asset of
the Parent Borrower or any Subsidiary existing on the date hereof and set forth
in Schedule 7.02; provided that (i) such Lien shall not
apply to any other property or asset of the Parent Borrower or any Subsidiary
and (ii) such Lien shall secure only those obligations that it secures on
the date hereof and extensions, renewals and replacements thereof that do not
increase the outstanding principal amount thereof (plus accrued interest and
premium thereon and fees and expenses related to such extension, renewal or
replacement thereof);

 

(d)           any Lien existing on any property or
asset prior to the acquisition thereof by the Parent Borrower or any Subsidiary
or existing on any property or asset of any Person that becomes a Subsidiary
after the date hereof prior to the time such Person becomes a Subsidiary; provided
that (i) such Lien is not created in contemplation of or in connection
with such acquisition or such Person becoming a Subsidiary, as the case may be,
(ii) such Lien shall not apply to any other property or assets of the
Parent Borrower or any Subsidiary and (iii) such Lien shall secure only
those obligations that it secures on the date of such acquisition or the date
such Person becomes a Subsidiary, as the case may be, and extensions, renewals
and replacements thereof that do not increase the outstanding principal amount
thereof (plus accrued interest and premium thereon and fees and expenses
related to such extension, renewal or replacement thereof);

 

(e)           Liens on fixed or capital assets
acquired, constructed or improved by the Parent Borrower or any Subsidiary; provided
that (i) such security interests secure Indebtedness permitted by clause (vi) or
(vii) of Section 7.01(a), (ii) such security interests
and the Indebtedness secured thereby are incurred prior to or within 90 days
after such acquisition or the completion of such construction or improvement, (iii) the
Indebtedness secured thereby does not exceed the lesser of the cost of
acquiring, constructing or improving such fixed or capital asset or its fair
market value at the time such security interest attaches, and in any event,
such Indebtedness does not exceed the amount of Indebtedness permitted under Section 7.01(a)(vi) or
(vii), and (iv) such security interests shall not apply to any other
property or assets of the Parent Borrower or any Subsidiary;

 

(f)            Liens of a collecting bank arising
in the ordinary course of business under Section 4-208 of the UCC in
effect in the relevant jurisdiction covering only the items being collected
upon; and

 

(g)           Liens granted by a Subsidiary that is
not a Loan Party in favor of the Parent Borrower or another Loan Party in
respect of Indebtedness owed by such Subsidiary.

 

7.03        Fundamental Changes.

 

(a)           The Parent Borrower will not, and
will not permit any Subsidiary to, merge into or consolidate with any other
Person, or permit any other Person to merge into or consolidate with it, or
liquidate or dissolve, except that, if at the time thereof and immediately
after giving effect thereto no Default shall have occurred and be continuing (i) any
Subsidiary may merge into a Borrower in a transaction in which a Borrower is
the surviving corporation, (ii) any Subsidiary (other than a Borrower) may
merge into any Subsidiary (other than a Borrower) in a transaction in which the
surviving entity is a Subsidiary and (if any party to such merger is a Loan
Party) is a Loan Party and (iii) any Subsidiary (other than a Loan Party)
may liquidate or dissolve if the Parent Borrower determines in good faith that
such liquidation or dissolution is in the best interests of the Parent Borrower
and is not materially disadvantageous to the Lenders; provided 

 

47

 

that
any such merger involving a Person that is not a Wholly Owned Subsidiary
immediately prior to such merger shall not be permitted unless also permitted
by Section 7.04.

 

(b)           The Parent Borrower will not, and
will not permit any of the Subsidiaries to, engage to any material extent in
any business other than businesses of the type conducted by the Parent Borrower
and the Subsidiaries on the Closing Date and businesses reasonably related
thereto.

 

7.04        Investments, Loans, Advances,
Guarantees and Acquisitions.  The Parent Borrower will not, and will not
permit any of the Subsidiaries to, purchase, hold or acquire (including
pursuant to any merger with any Person that was not a Wholly Owned Subsidiary
prior to such merger) any Equity Interests in or evidences of indebtedness or
other securities (including any option, warrant or other right to acquire any
of the foregoing) of, make or permit to exist any loans or advances to,
Guarantee any obligations of, or make or permit to exist any investment or any
other interest in, any other Person, or purchase or otherwise acquire (in one transaction
or a series of transactions) any assets of any other Person constituting a
business unit, except:

 

(a)           Permitted Investments;

 

(b)           Permitted Acquisitions; provided
that each acquisition during the term of this Credit Agreement must be approved
by the Administrative Agent and the Required Lenders, on a case-by-case basis,
in their discretion;

 

(c)           investments existing on the date
hereof and set forth on Schedule 7.04;

 

(d)           investments by the Parent Borrower
and its Subsidiaries in Equity Interests in their respective Subsidiaries;
provided that the aggregate amount of investments by Loan Parties in
Subsidiaries that are not Loan Parties (together with outstanding intercompany
loans permitted under clause (ii) to the proviso to subsection (e) hereof
and outstanding Guarantees permitted under the proviso to subsection (g) hereof)
shall not exceed $500,000 at any time outstanding (in each case determined
without regard to any write-down or write-offs);

 

(e)           loans or advances made by the Parent
Borrower to any Subsidiary and made by any Subsidiary to the Parent Borrower or
any other Subsidiary; provided that the amount of such loans and advances made
by Loan Parties to Subsidiaries that are not Loan Parties (together with
investments permitted under subsection (d) hereof and outstanding
Guarantees permitted under the proviso to subsection (g) hereof shall not
exceed $500,000 at any time outstanding (in each case determined without regard
to any write-down or write-offs);

 

(f)            loans or advances to employees made
in the ordinary course of business of the Parent Borrower or a Subsidiary not
exceeding $250,000 in the aggregate outstanding at any time; provided
that no such advances to any single employee shall exceed $100,000 in the
aggregate outstanding (determined without regard to any write-downs or
write-offs of such loans or advances);

 

(g)           Guarantees constituting Indebtedness
permitted by Section 7.01; provided that the aggregate
principal amount of Indebtedness of Subsidiaries that are not Loan Parties that
is Guaranteed by any Loan Party (together with investments permitted under Section 7.04(d) and
outstanding intercompany loans permitted under Section 7.04(e))
shall not exceed $500,000 at any time outstanding (in each case determined
without regard to any write-downs or write-offs);

 

48

 

(h)           investments received in connection
with the bankruptcy or reorganization of, or settlement of delinquent accounts
and disputes with, customers and suppliers, in each case in the ordinary course
of business;

 

(i)            investments in the form of Swap
Agreements permitted by Section 7.07;

 

(j)            investments of any Person existing
at the time such Person becomes a Subsidiary of a Borrower or consolidates or
merges with a Borrower or any of the Subsidiaries (including in connection with
a Permitted Acquisition) so long as such investments were not made in
contemplation of such Person becoming a Subsidiary or of such consolidation or
merger;

 

(k)           investments received in connection
with the dispositions of assets permitted by Section 7.05;

 

(l)            the Automatic Laundry Acquisition
shall be permitted in accordance with the terms of the Automatic Laundry
Acquisition Agreement;

 

(m)          investments made to the extent
permitted by Section 7.03; and

 

(n)           other investments, loans and advances
by the Parent Borrower or any Subsidiary in an aggregate amount, as valued at
cost at the time each such investment is made and including all related
commitments for future advances, not exceeding $250,000 in the aggregate for
all such investments made from and after the Closing Date plus an amount
equal to any returns of capital actually received in cash in respect of any
such investments (which amount shall not exceed the amount of such investment
valued at cost at the time such investment was made).

 

7.05        Asset Sales.  The Parent Borrower will not, and will not
permit any of its Subsidiaries to, sell, transfer, lease or otherwise dispose
of any asset, including any Equity Interest owned by it, nor will the Parent
Borrower permit any Subsidiary to issue any additional Equity Interest in such
Subsidiary, except:

 

(a)           sales, transfers and other
dispositions of (i) inventory, (ii) used or surplus equipment and (iii) Permitted
Investments in the ordinary course of business;

 

(b)           sales, transfers and other
dispositions to the Parent Borrower or a Subsidiary; provided that any
such sales, transfers or dispositions involving a Subsidiary that is not a Loan
Party shall be made in compliance with Sections 7.04 and 7.09;

 

(c)           sales, transfers and other
dispositions of accounts receivable in connection with the compromise,
settlement or collection thereof consistent with past practice;

 

(d)           sales, transfers and other
dispositions of property to the extent such property constitutes an investment
permitted by clauses (a), (h), (i) and (k) of
Section 7.04;

 

(e)           sale and leaseback transactions
permitted by Section 7.06;

 

(f)            dispositions
resulting from any casualty or other insured damage to, or any taking under
power of eminent domain or by condemnation or similar proceeding of, any
property or asset of any Borrower or any Subsidiary;

 

49

 

(g)           sales, transfers and other
dispositions of assets (other than Equity Interests in a Subsidiary unless all
Equity Interests in such Subsidiary (other than a Borrower) are sold) that are
not permitted by any other clause of this Section; provided that the
aggregate fair market value of all assets sold, transferred or otherwise
disposed of in reliance upon this clause (g) shall not exceed $5,000,000;
and

 

(h)           each of the Parent Borrower and its
Subsidiaries may grant licenses, sublicenses, leases or subleases to other
Persons to the extent such grant does not materially interfere with the conduct
of business of the Parent Borrower or any of its Subsidiaries;

 

provided that all
sales, transfers, leases and other dispositions permitted hereby (other than
those permitted by clause (b), (c) and (f) above) shall be made for
fair value and (other than those permitted by clause (b)) for at least 75% cash
consideration.

 

7.06        Sale and Leaseback Transactions.  The Parent Borrower will not, and will not
permit any of the Subsidiaries to, enter into any arrangement, directly or
indirectly, whereby it shall sell or transfer any property, real or personal,
used or useful in its business, whether now owned or hereinafter acquired, and
thereafter rent or lease such property or other property that it intends to use
for substantially the same purpose or purposes as the property sold or
transferred, except for any such sale of any fixed or capital assets that is
made for cash consideration in an amount not less than the fair value of such
fixed or capital asset and is consummated within 90 days after the Parent
Borrower or such Subsidiary acquires or completes the construction of such
fixed or capital asset.

 

7.07        Swap Agreements.  The Parent Borrower will not, and will not
permit any of the Subsidiaries to, enter into any Swap Agreement, except (a) Swap
Agreements entered into to hedge or mitigate risks to which the Parent Borrower
or any Subsidiary has actual exposure (other than those in respect of shares of
capital stock or other equity ownership interests of the Parent Borrower or any
of its Subsidiaries) and (b) Swap Agreements entered into in order to
effectively cap, collar or exchange interest rates (from floating to fixed
rate, from fixed to floating rates, from one floating rate to another floating
rate or otherwise) with respect to any interest-bearing liability or investment
of the Parent Borrower or any Subsidiary.

 

7.08        Restricted Payments; Certain Payments
of Indebtedness.  (a)  The Parent Borrower will not, and
will not permit any Subsidiary to, declare or make, or agree to pay or make,
directly or indirectly, any Restricted Payment, or incur any obligation
(contingent or otherwise) to do so, except (i) the Subsidiaries may
declare and pay dividends ratably with respect to their Equity Interests, and (ii) the
Parent Borrower may declare and pay dividends with respect to its common stock
payable solely in additional shares of its common stock.

 

(b)           The
Parent Borrower will not, and will not permit any Subsidiary to, make or agree
to pay or make, directly or indirectly, any payment or other distribution
(whether in cash, securities or other property) of or in respect of principal
of or interest on any Indebtedness, or any payment or other distribution
(whether in cash, securities or other property), including any sinking fund or
similar deposit, on account of the purchase, redemption, retirement,
acquisition, cancellation or termination of any Indebtedness, except:

 

(i)            payment of Indebtedness created
under (A) the Senior Secured Credit Agreement and (B) this Credit
Agreement and the Loan Documents;

 

(ii)           scheduled payments of principal or
interest with respect to Indebtedness to the extent permitted by Section 7.01;

 

50

 

(iii)          payment of secured Indebtedness that
becomes due as a result of the voluntary sale or transfer of the property or
assets securing such Indebtedness; and

 

(iv)          prepayments in respect of Capital
Lease Obligations in the ordinary course of business.

 

7.09        Transactions with Affiliates.  The Parent Borrower will not, and will not
permit any Subsidiary to, sell, lease or otherwise transfer any property or
assets to, or purchase, lease or otherwise acquire any property or assets from,
or otherwise engage in any other transactions with, any of its Affiliates,
except (a) transactions in the ordinary course of business and at prices
and on terms and conditions not less favorable to the Parent Borrower or such
Subsidiary than could be obtained on an arm’s-length basis from unrelated third
parties, (b) transactions between or among the Parent Borrower and the Loan
Parties not involving any other Affiliate, (c) any investment permitted by
Section 7.04(d) and (e), (d) any Indebtedness
permitted under Section 7.01(a)(iv), (e) loans or advances to
employees permitted under Section 7.04, (f) the payment of
reasonable fees to directors of the Parent Borrower or any Subsidiary who are
not employees of the Parent Borrower or any Subsidiary, and compensation and
employee benefit arrangements paid to, and indemnities provided for the benefit
of, directors, officers or employees of the Parent Borrower or its Subsidiaries
in the ordinary course of business, (g) any issuances of securities or
other payments, awards or grants in cash, securities or otherwise pursuant to,
or the funding of, employment agreements, stock options and stock ownership
plans approved by the Parent Borrower’s Board of Directors, (h) employment
and severance arrangements entered into in the ordinary course of business and
approved by the Parent Borrower’s Board of Directors between the Parent
Borrower or any Subsidiary and any employee thereof and (i) any Restricted
Payment permitted by Section 7.08.

 

7.10        Restrictive Agreements.  The Parent Borrower will not, and will not
permit any Subsidiary to, directly or indirectly, enter into, incur or permit
to exist any agreement or other arrangement that prohibits, restricts or
imposes any condition upon (a) the ability of the Parent Borrower or any
Subsidiary to create, incur or permit to exist any Lien upon any of its
property or assets, or (b) the ability of any Subsidiary to pay dividends
or other distributions with respect to any shares of its capital stock or to
make or repay loans or advances to the Parent Borrower or any other Subsidiary
or to Guarantee Indebtedness of the Parent Borrower or any other Subsidiary; provided
that (i) the foregoing shall not apply to restrictions and conditions
imposed by law, by the Senior Secured Credit Agreement or by any Loan Document,
(ii) the foregoing shall not apply to restrictions and conditions existing
on the Closing Date identified on Schedule 7.10 (but shall apply to any
extension or renewal of, or any amendment or modification expanding the scope
of, any such restriction or condition), (iii) the foregoing shall not
apply to customary restrictions and conditions contained in agreements relating
to the sale of a Subsidiary pending such sale, provided such
restrictions and conditions apply only to the Subsidiary that is to be sold and
such sale is permitted hereunder, (iv) clause (a) of the foregoing
shall not apply to restrictions or conditions imposed by (A) any agreement
relating to secured Indebtedness permitted by this Credit Agreement if such
restrictions or conditions apply only to the property or assets securing such
Indebtedness or (B) any Senior Notes Documents and (v) clause (a) of
the foregoing shall not apply to customary provisions in leases and other
contracts restricting the assignment thereof.

 

7.11        Amendment of Material Documents.  The Parent Borrower will not, and will not
permit any Subsidiary to, amend, modify or waive any of its rights under (a) its
certificate of incorporation, by-laws or other organizational documents to the
extent adverse to the Lenders, (b) any Senior Notes Documents, except to
the extent permitted by the definition of “Senior Notes Refinancing
Indebtedness” or (c) any Seller Subordinated Note Documents, except to the
extent permitted by the definition of “Seller Subordinated Note Refinancing
Indebtedness”.

 

51

 

7.12        Financial Covenants.

 

(a)           Consolidated
Total Leverage Ratio.  As of the end
of each fiscal quarter of the Parent Borrower, the Consolidated Total Leverage
Ratio will be not greater than:

 

	
  Period

  	
   

  	
  Maximum Consolidated

  Total Leverage Ratio

  
	
  Closing
  Date through June 30, 2009

  	
   

  	
  4.5:1.0

  
	
  July 1,
  2009 and thereafter

  	
   

  	
  4.25:1.0

  

 

(b)           Consolidated
Senior Secured Leverage Ratio.  As of
the end of each fiscal quarter of the Parent Borrower, the Consolidated Senior
Secured Leverage Ratio will be not greater than 2.5:1.0.

 

(c)           Consolidated
Cash Flow Coverage Ratio.  As of the
end of each fiscal quarter of the Parent Borrower, the Consolidated Cash Flow
Coverage Ratio will be not less than 1.2:1.0.

 

ARTICLE VIII

 

EVENTS OF DEFAULT AND REMEDIES

 

8.01        Events of Default.

 

If
any of the following events (“Events of Default”) shall occur:

 

(a)           the Borrowers shall fail to pay any
principal of any Loan when and as the same shall become due and payable,
whether at the due date thereof or at a date fixed for prepayment thereof or
otherwise;

 

(b)           the Borrowers shall fail to pay any
interest on any Loan or any fee or any other amount (other than an amount
referred to in clause (a) of this Article) payable under this Credit
Agreement or any other Loan Document, when and as the same shall become due and
payable, and such failure shall continue unremedied for a period of three
Business Days;

 

(c)           any representation or warranty made
or deemed made by or on behalf of the Parent Borrower or any Subsidiary in or
in connection with any Loan Document or any amendment or modification thereof
or waiver thereunder, or in any report, certificate, financial statement or
other document furnished pursuant to or in connection with any Loan Document or
any amendment or modification thereof or waiver thereunder, shall prove to have
been incorrect (i) to the extent such representation or warranty is
modified or qualified based on the terms “materially” or “material” or by
reference to the term “Material Adverse Effect”, in any respect and (ii) to
the extent such representation or warranty is not so modified or qualified, in
any material respect, in each case when made or deemed made;

 

(d)           the Borrowers shall fail to observe
or perform any covenant, condition or agreement contained in Section 6.02,
6.03 or 6.04 (with respect to the existence of the Borrowers) or 6.11
or in Article VII;

 

(e)           any Loan Party shall fail to observe
or perform any covenant, condition or agreement contained in any Loan Document
(other than those specified in clause (a), (b) or (d) of 

 

52

 

this
Article), and such failure shall continue unremedied for a period of 30 days
after notice thereof from the Administrative Agent to the Borrowers (which
notice will be given at the request of any Lender);

 

(f)            the Parent Borrower or any
Subsidiary shall fail to make any payment (whether of principal or interest and
regardless of amount, but in any case after any applicable grace period) in
respect of any Material Indebtedness, when and as the same shall become due and
payable;

 

(g)           any event or condition occurs that
results in any Material Indebtedness becoming due prior to its scheduled
maturity or that enables or permits (with or without the giving of notice, the
lapse of time or both) the holder or holders of any Material Indebtedness or
any trustee or agent on its or their behalf to cause any Material Indebtedness
to become due, or to require the prepayment, repurchase, redemption or
defeasance thereof, prior to its scheduled maturity; provided that this
clause (g) shall not apply to secured Indebtedness that becomes due as a
result of the voluntary sale or transfer of the property or assets securing
such Indebtedness;

 

(h)           an involuntary proceeding shall be
commenced or an involuntary petition shall be filed seeking (i) liquidation,
reorganization or other relief in respect of the Parent Borrower or any
Subsidiary or its debts, or of a substantial part of its assets, under any
Federal, state or foreign bankruptcy, insolvency, receivership or similar law
now or hereafter in effect or (ii) the appointment of a receiver, trustee,
custodian, sequestrator, conservator or similar official for the Parent
Borrower or any Subsidiary or for a substantial part of its assets, and, in any
such case, such proceeding or petition shall continue undismissed for 60 days
or an order or decree approving or ordering any of the foregoing shall be
entered;

 

(i)            the Parent Borrower or any
Subsidiary shall (i) voluntarily commence any proceeding or file any
petition seeking liquidation, reorganization or other relief under any Federal,
state or foreign bankruptcy, insolvency, receivership or similar law now or
hereafter in effect, (ii) consent to the institution of, or fail to
contest in a timely and appropriate manner, any proceeding or petition
described in clause (h) of this Article, (iii) apply for or
consent to the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for the Parent Borrower or any Subsidiary or
for a substantial part of its assets, (iv) file an answer admitting the
material allegations of a petition filed against it in any such proceeding, (v) make
a general assignment for the benefit of creditors or (vi) take any action
for the purpose of effecting any of the foregoing;

 

(j)            the Parent Borrower or any
Subsidiary shall become unable, admit in writing its inability or fail
generally to pay its debts as they become due;

 

(k)           one or more judgments for the payment
of money in an aggregate amount in excess of $2,500,000 shall be rendered
against the Parent Borrower, any Subsidiary or any combination thereof and the
same shall remain undischarged for a period of 30 consecutive days during which
execution shall not be effectively stayed, or any action shall be legally taken
by a judgment creditor to attach or levy upon any assets of the Parent Borrower
or any Subsidiary to enforce any such judgment;

 

(l)            an ERISA Event shall have occurred
that, in the opinion of the Required Lenders, when taken together with all
other ERISA Events that have occurred, could reasonably be expected to result
in liability of the Parent Borrower and its Subsidiaries in an aggregate amount
exceeding (i) $625,000 in any year or (ii) $1,250,000 for all
periods;

 

53

 

(m)          any Loan Document shall for any reason
be asserted by any Loan Party not to be a legal, valid and binding obligation
of any party thereto;

 

(n)           the Guarantees of the Obligations by
Parent Borrower and the Loan Parties pursuant to the Guarantee Agreement shall
cease to be in full force and effect (other than in accordance with the terms
of the Loan Documents) or shall be asserted by Parent Borrower or any Loan
Party not to be in effect or not to be legal, valid and binding obligations;

 

(o)           a Change in Control shall occur; or

 

(p)           the occurrence of an “Event of
Default” (or any comparable term) under, and as defined in, the Senior Secured
Loan Documents;

 

then,
and in every such event (other than an event with respect to the Borrowers
described in clause (h) or (i) of this Article), and at any time
thereafter during the continuance of such event, the Administrative Agent may,
and at the request of the Required Lenders shall, by notice to the Borrowers,
take either or both of the following actions, at the same or different
times:  (i) terminate the Revolving
Commitments, and thereupon the Revolving Commitments shall terminate
immediately, and (ii) declare the Loans then outstanding to be due and
payable in whole (or in part, in which case any principal not so declared to be
due and payable may thereafter be declared to be due and payable), and
thereupon the principal of the Loans so declared to be due and payable,
together with accrued interest thereon and all fees and other obligations of
the Borrowers accrued hereunder, shall become due and payable immediately,
without presentment, demand, protest or other notice of any kind, all of which
are hereby waived by the Borrowers; and in case of any event with respect to
the Borrowers described in clause (h) or (i) of this Article, the
Revolving Commitments shall automatically terminate and the principal of the
Loans then outstanding, together with accrued interest thereon and all fees and
other obligations of the Borrowers accrued hereunder, shall automatically become
due and payable, without presentment, demand, protest or other notice of any
kind, all of which are hereby waived by the Borrowers.

 

8.02        Application of Funds.

 

After
the exercise of remedies provided for in Section 8.01 (or after the
Loans have automatically become immediately due and payable), any amounts
received on account of the Obligations shall be applied by the Administrative
Agent in the following order:

 

First, pro rata to the payment of
that portion of the Obligations hereunder constituting fees, indemnities,
expenses and other amounts (including all reasonable fees, expenses and
disbursements of any law firm or other counsel to the extent payable under Section 10.04
and amounts payable under Article III) payable to the
Administrative Agent in its capacity as such, including all amounts incurred in
the execution of its duties as administrative agent to the extent payable under
the Loan Documents;

 

Second, pro rata to payment of
that portion of the Obligations hereunder constituting fees, indemnities,
expenses and other amounts (including all reasonable fees, expenses and
disbursements of any law firm or other counsel to the extent payable under Section 10.04
and amounts payable under Article III hereof) payable to the
Administrative Agent in its capacity as such to the extent payable under the
Loan Documents;

 

Third, pro rata to payment of
that portion of the Obligations hereunder constituting fees, indemnities and
other amounts (other than principal and interest) payable to the lenders 

 

54

 

(including
all reasonable fees, expenses and disbursements of any law firm or other
counsel to the extent payable under Section 10.04 and amounts payable
under Article III), ratably among them in proportion to the amounts
described in this clause payable to them to the extent payable under the Loan
Documents;

 

Fourth, pro rata to payment of
that portion of the Obligations hereunder constituting accrued and unpaid
interest on loans and fees, premiums and scheduled periodic payments, and any
interest accrued thereon, due under any Swap Agreement between any Loan Party
and any Lender, or any Affiliate of a Lender, to the extent such Swap Agreement
is permitted by Section 7.07, ratably among the Lenders (and, in
the case of such Swap Agreements, Affiliates of Lenders) in proportion to the
respective amounts described in this clause Fourth held by them;

 

Fifth, pro rata to payment of
that portion of the Obligations hereunder constituting unpaid principal of
loans and breakage, termination or other payments, and any interest accrued
thereon, due under any Swap Agreement between any Loan Party and any Lender, or
any Affiliate of a Lender, to the extent such Swap Agreement is permitted by Section 7.07,
ratably among the Lenders (and, in the case of such Swap Agreements, Affiliates
of Lenders) in proportion to the respective amounts described in this clause Fifth
held by them; and

 

Last, the balance, if any, after
all of the Obligations hereunder have been indefeasibly paid in full, to the
Borrowers or as otherwise required by Law.

 

ARTICLE IX

 

ADMINISTRATIVE AGENT

 

9.01        Appointment and Authorization of
Administrative Agent.

 

Each
of the Lenders hereby irrevocably appoints Bank of America to act on its behalf
as the Administrative Agent hereunder and under the other Loan 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 and
the Lenders, and none of the Borrowers nor any other Loan Party shall have
rights as a third party beneficiary of any of such provisions.

 

9.02        Rights as a Lender.

 

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 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 any of the Borrowers or any of their Subsidiaries or other
Affiliates as if such Person were not the Administrative Agent hereunder and
without any duty to account therefor to the Lenders.

 

55

 

9.03        Exculpatory Provisions.

 

The
Administrative Agent shall not have any duties or obligations except those expressly
set forth herein and in the other Loan 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 Loan 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 Loan 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 Loan Document or applicable law; and

 

(c)           shall not, except as expressly set
forth herein and in the other Loan Documents, have any duty to disclose, and
shall not be liable for the failure to disclose, any information relating to
the Borrowers or any of their 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 good faith shall be necessary, under the
circumstances as provided in Sections 10.01 and Article VIII)
or (ii) in the absence of its own gross negligence or willful
misconduct.  The Administrative Agent
shall be deemed not to have knowledge of any Default unless and until notice
describing such Default is given to the Administrative Agent by a Borrower or a
Lender.

 

The
Administrative Agent shall not be responsible for or have any duty to ascertain
or inquire into (i) any statement, warranty or representation made by any
other Person in or in connection with this Credit Agreement or any other Loan
Document, (ii) the contents of any certificate, report or other document
delivered by any other Person hereunder or thereunder or in connection herewith
or therewith, (iii) the performance or observance by any other Person 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 Credit Agreement, any
other Loan 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.

 

9.04        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
that by its terms must be 

 

56

 

fulfilled
to the satisfaction of a Lender, the Administrative Agent may presume that such
condition is satisfactory to such Lender unless the Administrative Agent shall
have received notice to the contrary from such Lender prior to the making of
such Loan.  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.

 

9.05        Delegation of Duties.

 

The
Administrative Agent may perform any and all of its duties and exercise its rights
and powers hereunder or under any other Loan 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.

 

9.06        Resignation of the Administrative
Agent.

 

The
Administrative Agent may at any time give notice of its resignation to the
Lenders and the Parent Borrower.  Upon
receipt of any such notice of resignation, the Required Lenders shall have the
right, in consultation with the Parent Borrower, to appoint a successor, which
shall be a bank with an office in the United States, or an Affiliate of any
such bank with an office in the United States. 
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, 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 (1) the
retiring Administrative Agent shall be discharged from its duties and
obligations hereunder and under the other Loan Documents and (2) 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
directly, until such time as the Required Lenders appoint a successor
Administrative Agent as provided for above in this Section.  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 Loan Documents (if not already discharged therefrom as provided
above in this Section).  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 Borrowers and
such successor.  After the retiring
Administrative Agent’s resignation hereunder and under the other Loan
Documents, the provisions of this Article and Section 10.04
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.

 

9.07        Non-Reliance on Administrative Agent
and Other Lenders.

 

Each
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 

 

57

 

Credit
Agreement.  Each 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
Credit Agreement, any other Loan Document or any related agreement or any
document furnished hereunder or thereunder.

 

9.08        No Other Duties.

 

Anything
herein to the contrary notwithstanding, neither the Sole Lead Arranger nor the
Sole Book Manager listed on the cover page hereof shall have any powers,
duties or responsibilities under this Credit Agreement or any of the other Loan
Documents, except in its capacity, as applicable, as the Administrative Agent
or a Lender hereunder.

 

9.09        Administrative Agent May File
Proofs of Claim.

 

In
case of the pendency of any proceeding under any Debtor Relief Law or any other
judicial proceeding relative to any Loan Party, the Administrative Agent
(irrespective of whether the principal of any Loan shall then be due and
payable as herein expressed or by declaration or otherwise and irrespective of
whether the Administrative Agent shall have made any demand on any Borrower)
shall be entitled and empowered, by intervention in such proceeding or
otherwise:

 

(a)           to file and prove a claim for the
whole amount of the principal and interest owing and unpaid in respect of the
Loans and all other Obligations (other than obligations under Swap Agreements
or Treasury Management Agreements to which the Administrative Agent is not a
party) that are owing and unpaid and to file such other documents as may be
necessary or advisable in order to have the claims of the Lenders and the
Administrative Agent (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Lenders and the Administrative
Agent and their respective agents and counsel and all other amounts due the
Lenders and the Administrative Agent under Sections 2.09 and 10.04)
allowed in such judicial proceeding; and

 

(b)           to collect and receive any monies or
other property payable or deliverable on any such claims and to distribute the
same;

 

and
any custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such judicial proceeding is hereby authorized by each
Lender to make such payments to the Administrative Agent and, in the event that
the Administrative Agent shall consent to the making of such payments directly
to the Lenders, to pay to the Administrative Agent any amount due for the
reasonable compensation, expenses, disbursements and advances of the
Administrative Agent and its agents and counsel, and any other amounts due the
Administrative Agent under Sections 2.09 and 10.04.

 

Nothing
contained herein shall be deemed to authorize the Administrative Agent to
authorize or consent to or accept or adopt on behalf of any Lender any plan of
reorganization, arrangement, adjustment or composition affecting the
Obligations or the rights of any Lender or to authorize the Administrative
Agent to vote in respect of the claim of any Lender in any such proceeding.

 

9.10        Guaranty Matters.

 

The
Lenders irrevocably authorize the Administrative Agent to release any Guarantor
from its obligations under the Guarantee Agreement (or other document pursuant
to which a Person becomes a 

 

58

 

Guarantor),
provided hereunder if such Person ceases to be a Subsidiary as a result of a
transaction permitted hereunder.

 

As
specified in this Section 9.10, the Administrative Agent will, at
the Parent Borrower’s expense, execute and deliver to the applicable Loan Party
such documents as such Loan Party may reasonably request to release such
Guarantor from its obligations under the Guarantee Agreement, in each case in
accordance with the terms of the Loan Documents and this Section 9.10.

 

ARTICLE X

 

MISCELLANEOUS

 

10.01      Amendments, Etc.

 

No
amendment or waiver of any provision of this Credit Agreement or any other Loan
Document, and no consent to any departure by the Borrowers or any other Loan
Party therefrom, shall be effective unless in writing signed by the Required
Lenders (or by the Administrative Agent on behalf of the Required Lenders upon
receipt of a consent and direction letter to do so by the applicable Lenders)
and the applicable Borrower or the applicable Loan Party, as the case may be,
and acknowledged by the Administrative Agent, and each such waiver or consent
shall be effective only in the specific instance and for the specific purpose
for which given; provided, however, that:

 

(a)           unless also consented to in writing
by each Lender directly affected thereby, no such amendment, waiver or consent
shall:

 

(i)            extend or increase the Commitment of
any Lender (or reinstate any Revolving Commitment terminated pursuant to Section 8.01),
it being understood that the amendment or waiver of an Event of Default or a
mandatory reduction or a mandatory prepayment in Revolving Commitments shall
not be considered an increase in Revolving Commitments;

 

(ii)           waive non-payment or postpone any
date fixed by this Credit Agreement or any other Loan Document for any payment
of principal, interest, fees or other amounts due to any Lender hereunder or
under any other Loan Document (it being understood that an amendment or waiver
of a mandatory reduction or mandatory prepayment provision shall not be
considered a non-payment or postponement of a payment)`;

 

(iii)          reduce the principal of, or the rate
of interest specified herein on, any Loan, or any fees or other amounts payable
hereunder or under any other Loan Document; provided, however, that only
the consent of the Required Lenders shall be necessary (A) to amend the
definition of “Default Rate” or to waive any obligation of the Borrowers to pay
interest at the Default Rate or (B) to amend any financial covenant
hereunder (or any defined term used therein) even if the effect of such
amendment would be to reduce the rate of interest on any Loan or to reduce any
fee payable hereunder;

 

(iv)          change any provision of this Credit
Agreement regarding pro rata sharing or pro rata funding with respect to (A) the
making of advances (including participations), (B) the manner of
application of payments or prepayments of principal, interest, or fees, or (C) the
manner of reduction of commitments and committed amounts;

 

59

 

(v)           change any provision of this Section 10.01(a) or
the definition of “Required Lenders” or any other provision hereof specifying
the number or percentage of Lenders required to amend, waive or otherwise
modify any rights hereunder or make any determination or grant any consent
hereunder; or

 

(vi)          release all or substantially all of
the value of the guarantee provided by the Loan Parties pursuant to the
Guarantee Agreement without the written consent of each Lender;

 

(b)           unless also consented to in writing
by the Administrative Agent, no such amendment, waiver or consent shall affect
the rights or duties of the Administrative Agent under this Credit Agreement or
any other Loan Document;

 

provided however, that
notwithstanding anything to the contrary contained herein, (i) no
Defaulting Lender shall have any right to approve or disapprove any amendment,
waiver or consent hereunder, except that the Commitment of such Lender may not
be increased or extended without the consent of such Lender, (ii) each
Lender is entitled to vote as such Lender sees fit on any bankruptcy or
insolvency reorganization plan that affects the Loans, (iii) each Lender
acknowledged that the provisions of Section 1126(c) of the Bankruptcy
Code supersedes the unanimous consent provisions set forth herein, (iv) the
Required Lenders may consent to allow a Loan Party to use cash collateral in
the context of a bankruptcy or insolvency proceeding; and (v) the Fee
Letter may be amended, or rights or privileges thereunder waived, in a writing
executed only by the parties thereto.

 

10.02      Notices; Effectiveness; Electronic
Communication.

 

(a)           Notices
Generally.  Except in the case of
notices and other communications expressly permitted to be given by telephone
(and except as provided in subsection (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, and all notices and other
communications expressly permitted hereunder to be given by telephone shall be
made to the applicable telephone number, as follows:

 

(i)            if to any Borrower or the
Administrative Agent, to the address, telecopier number, electronic mail
address or telephone number specified for such Person on Schedule 10.02;
and

 

(ii)           if to any other Lender, to the
address, telecopier number, electronic mail address or telephone number
specified in its Administrative Questionnaire.

 

Notices
and other communications sent by hand or overnight courier service, or mailed
by certified or registered mail, shall be deemed to have been given when
received; notices and other communications 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 and other communications delivered
through electronic communications to the extent provided in subsection (b) below,
shall be effective as provided in such subsection (b).

 

(b)           Electronic
Communications.  Notices and other
communications to the Lenders 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 pursuant to Article II
if such Lender has notified the 

 

60

 

Administrative
Agent that it is incapable of receiving notices under such Article by
electronic communication.  The
Administrative Agent or the Borrowers may, in their 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)           THE
PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.”  THE AGENT PARTIES (AS DEFINED BELOW) DO NOT
WARRANT THE ACCURACY OR COMPLETENESS OF THE 
MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY
FOR ERRORS IN OR OMISSIONS FROM THE LOAN PARTY MATERIALS.  NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR
STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, NON INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR
OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE LOAN
PARTY MATERIALS OR THE PLATFORM.  In no
event shall the Administrative Agent or any of its Related Parties
(collectively, the “Agent Parties”) have any liability to any Loan
Party, any Lender or any other Person for losses, claims, damages, liabilities
or expenses of any kind (whether in tort, contract or otherwise) arising out of
any Loan Party’s or the Administrative Agent’s transmission of Loan Party
Materials through the Internet, except to the extent that such losses, claims,
damages, liabilities or expenses are determined by a court of competent
jurisdiction by a final and nonappealable judgment to have resulted from the
gross negligence or willful misconduct of any Agent Party; provided, however,
that in no event shall any Agent Party have any liability to any Loan Party,
any Lender or any other Person for indirect, special, incidental, consequential
or punitive damages (as opposed to direct or actual damages).

 

(d)           Change
of Address, Etc.  Each of the
Borrowers and the Administrative Agent may change its address, telecopier or
telephone number for notices and other communications hereunder by notice to
the other parties hereto.  Each other
Lender may change its address, telecopier or telephone number for notices and
other communications hereunder by notice to the Parent Borrower and the
Administrative Agent.  In addition, each
Lender agrees to notify the Administrative Agent from time to time to ensure
that the Administrative Agent has on record (i) an effective address,
contact name, telephone number, telecopier number and electronic mail address
to which notices and other communications may be sent and (ii) accurate
wire instructions for such Lender. 
Furthermore, each Public Lender agrees to cause at least one individual
at or on behalf of such Public Lender to at all times have selected the “Private
Side Information” or similar designation on the content declaration screen of
the Platform in order to enable such Public Lender or its delegate, in
accordance with such Public Lender’s compliance procedures and applicable Law,
including United States Federal and state securities Laws, to make reference to
Loan Party Materials that are not made available through the “Public Side
Information” portion of the Platform and that may contain material non public
information with respect to the Borrowers or their securities for purposes of
United States Federal or state securities laws.

 

61

 

(e)           Reliance
by Administrative Agent and Lenders. 
The Administrative Agent and the Lenders shall be entitled to rely and
act upon any notices (including telephonic Loan Notices) purportedly given by
or on behalf of the Borrowers even if (i) such notices were not made in a
manner specified herein, were incomplete or were not preceded or followed by
any other form of notice specified herein, or (ii) the terms thereof, as
understood by the recipient, varied from any confirmation thereof.  The Borrowers shall indemnify the
Administrative Agent, each Lender and the Related Parties of each of them from
all losses, costs, expenses and liabilities resulting from the reliance by such
Person on each notice purportedly given by or on behalf of a Borrower.  All telephonic notices to and other
telephonic communications with the Administrative Agent may be recorded by the
Administrative Agent, and each of the parties hereto hereby consents to such
recording.

 

10.03      No Waiver; Cumulative Remedies;
Enforcement.

 

No
failure by any Lender or the Administrative Agent to exercise, and no delay by
any such Person in exercising, 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.

 

Notwithstanding
anything to the contrary contained herein or in any other Loan Document, the
authority to enforce rights and remedies hereunder and under the other Loan
Documents against the Loan Parties or any of them shall be vested exclusively
in, and all actions and proceedings at law in connection with such enforcement
shall be instituted and maintained exclusively by, the Administrative Agent in
accordance with Section 8.02 for the benefit of all the Lenders; provided,
however, that the foregoing shall not prohibit (a) the
Administrative Agent from exercising on its own behalf the rights and remedies
that inure to its benefit (solely in its capacity as Administrative Agent)
hereunder and under the other Loan Documents, (b) any Lender from
exercising setoff rights in accordance with Section 10.08 (subject
to the terms of Section 2.13), or (c) any Lender from filing
proofs of claim or appearing and filing pleadings on its own behalf during the
pendency of a proceeding relative to any Loan Party under any Debtor Relief
Law; and provided, further, that if at any time there is no
Person acting as Administrative Agent hereunder and under the other Loan
Documents, then (i) the Required Lenders shall have the rights otherwise
ascribed to the Administrative Agent pursuant to Article VIII and (ii) in
addition to the matters set forth in clauses (b) and (c) of the
preceding proviso and subject to Section 2.13, any Lender may, with
the consent of the Required Lenders, enforce any rights and remedies available
to it and as authorized by the Required Lenders.

 

62

 

10.04      Expenses; Indemnity; Damage Waiver.

 

(a)           Costs and Expenses. 
The Borrowers shall pay (i) all reasonable and documented out-of-
pocket expenses incurred by the Administrative Agent and its Affiliates
(including the reasonable fees, charges and disbursements of one outside
counsel (in addition to any reasonably necessary special counsel and up to one
local counsel in each applicable jurisdiction) for the Administrative Agent),
in connection with the syndication of the credit facilities provided for
herein, the preparation, negotiation, execution, delivery and administration of
this Credit Agreement and the other Loan 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) and (ii) all
reasonable out of pocket expenses incurred by the Administrative Agent or any
Lender (including the fees, charges and disbursements of any one outside
counsel (in addition to any reasonably necessary special counsel and up to one
local counsel in each applicable jurisdiction) for the Administrative Agent or
any Lender), in connection with the enforcement or protection of its rights
(unless, in the reasonable opinion of such outside counsel, the representation
of all such parties by one outside counsel would be inappropriate due to the
existence of an actual or potential conflict of interest) (A) in
connection with this Credit Agreement and the other Loan Documents, including
its rights under this Section, or (B) in connection with the Loans made
hereunder, including all such out of pocket expenses incurred during any
workout, restructuring or negotiations in respect of such Loans.

 

(b)           Indemnification by the Borrowers.  The Borrowers shall indemnify the
Administrative Agent (and any sub-agent thereof), each 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,
damages, liabilities and related expenses (including the reasonable and
documented fees, charges and disbursements of counsel for any Indemnitee,
subject to the last sentence of this clause (b)), incurred by any Indemnitee or
asserted against any Indemnitee by any third party or by any Borrower or any
other Loan Party arising out of, in connection with, or as a result of (i) the
execution or delivery of this Credit Agreement, any other Loan Document or any
agreement or instrument contemplated hereby or thereby, the performance by the
parties hereto of their respective obligations hereunder or thereunder or the
consummation of the transactions contemplated hereby or thereby, or, in the
case of the Administrative Agent (and any sub-agent thereof) and its Related
Parties only, the administration of this Credit Agreement and the other Loan
Documents (including in respect of any matters addressed in Section 3.01),
(ii) any Loan or the use or proposed use of the proceeds therefrom, (iii) any
actual or alleged presence or release of Hazardous Materials on or from any
property owned or operated by the Borrowers or any of their Subsidiaries, or
any Environmental Liability related in any way to the Borrowers or any of their
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 or any other Loan Party, 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 (x) are determined by a court of competent
jurisdiction by final judgment to have resulted from the bad faith, gross
negligence or willful misconduct of such Indemnitee (or its Related Parties) or
(y) result from a claim brought by any Borrower or any other Loan Party
against an Indemnitee for breach in bad faith of such Indemnitee’s obligations
hereunder or under any other Loan Document, if such Borrower or such other Loan
Party has obtained a final and nonappealable judgment in its favor on such
claim as determined by a court of competent jurisdiction.  Notwithstanding anything to the contrary in
this Credit Agreement or any other Loan Document, with respect to any
individual claim (or series of related claims), in no event shall the Loan
Parties be required to reimburse the legal fees and expenses of more than one
outside counsel (in addition to any reasonably necessary special counsel and up
to one local counsel in each applicable jurisdiction, but excluding any inhouse
counsel) for all Indemnitees collectively unless, in 

 

63

 

the
reasonable opinion of such outside counsel, the representation of all such
Persons by one outside counsel would be inappropriate due to the existence of
an actual or potential conflict of interest.

 

(c)           Reimbursement by Lenders.  To the extent that any Borrower for any
reason fails to indefeasibly pay any amount required under subsection (a) or
(b) of this Section to be paid by it to the Administrative
Agent (or any sub-agent thereof) or any Related Party of any of the foregoing,
each Lender severally agrees to pay to the Administrative Agent (or any such
sub-agent) or such Related Party, as the case may be, such Lender’s Aggregate
Revolving 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) or against any Related Party of
any of the foregoing acting for the Administrative Agent (or any such
sub-agent).  The obligations of the
Lenders under this subsection (c) are subject to the provisions of Section 2.11(d).

 

(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 Credit Agreement, any other Loan
Document or any agreement or instrument contemplated hereby, the transactions
contemplated hereby or thereby, any Loan or the use of the proceeds
thereof.  No Indemnitee referred to in
subsection (b) above shall be liable for any damages arising from the use
by unintended recipients of any information or other materials distributed to
such unintended recipients by such Indemnitee through telecommunications,
electronic or other information transmission systems in connection with this
Credit Agreement or the other Loan Documents or the transactions contemplated hereby
or thereby other than for direct or actual damages resulting from the bad
faith, gross negligence or willful misconduct of such Indemnitee or its Related
Parties as determined by a final and nonappeable judgment of a court of
competent jurisdiction.

 

(e)           Payments. 
All amounts due under this Section shall be payable not later than
ten (10) Business Days after demand therefor.

 

(f)            Survival. 
The agreements in this Section 10.04 shall survive the resignation
of the Administrative Agent, the replacement of any Lender, the termination of
the Aggregate Revolving Commitments and the repayment, satisfaction or
discharge of all the other Obligations.

 

10.05      Payments Set Aside.

 

To
the extent that any payment by or on behalf of the Borrowers is made to the Administrative
Agent or any Lender, or the Administrative Agent or any Lender exercises its
right of setoff, and such payment or the proceeds of such setoff or any part
thereof is subsequently invalidated, declared to be fraudulent or preferential,
set aside or required (including pursuant to any settlement entered into by the
Administrative Agent or such Lender in its discretion) to be repaid to a
trustee, receiver or any other party, in connection with any proceeding under
any Debtor Relief Law or otherwise, then (a) to the extent of such
recovery, the obligation or part thereof originally intended to be satisfied
shall be revived and continued in full force and effect as if such payment had
not been made or such setoff had not occurred, and (b) each Lender severally
agrees to pay to the Administrative Agent on demand its applicable share
(without duplication) of any amount so recovered from or repaid by the
Administrative Agent, plus interest thereon from the date of such demand to the
date such payment is made at a rate per annum equal to the Federal Funds Rate
from time to time in effect.  The
obligations of the Lenders under clause (b) of the preceding sentence
shall survive the payment in full of the Obligations and the termination of
this Credit Agreement.

 

64

 

10.06      Successors and Assigns.

 

(a)           Successors
and Assigns Generally.  The
provisions of this Credit Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns
permitted hereby, except that neither any Borrower nor any other Loan Party 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 subsection
(b) of this Section or (ii) by way of participation in
accordance with the provisions of subsection (d) of this
Section.  Nothing in this Credit
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 subsection (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 Credit Agreement.

 

(b)           Assignments
by Lenders.  Any Lender may at any
time assign to one or more assignees all or a portion of its rights and
obligations under this Credit 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 subsection
(b)(i)(A) of this Section, the aggregate amount of the Commitment
(which for this purpose includes Loans outstanding thereunder) or, if the
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
$5,000,000 unless each of the Administrative Agent and, so long as no Event of
Default has occurred and is continuing, the Parent Borrower otherwise consents
(each such consent not to be unreasonably withheld or delayed); provided,
however, that concurrent assignments to members of an Assignee Group and
concurrent assignments from members of an Assignee Group to a single Eligible
Assignee (or to an Eligible Assignee and members of its Assignee Group) will be
treated as a single assignment for purposes of determining whether such minimum
amount has been met.

 

(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 Credit Agreement with respect to the Loans or the
Commitment assigned;

 

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

 

65

 

(A)          the consent of the Parent Borrower
(such consent not to be unreasonably withheld or delayed) shall be required
unless (1) an Event of Default has occurred and is continuing at the time
of such assignment or (2) such assignment is to a Lender, an Affiliate of
a Lender or an Approved Fund; and

 

(B)           the consent of the Administrative
Agent (such consent not to be unreasonably withheld or delayed) shall be
required for assignments in respect of any Revolving Commitment if such
assignment is to a Person that is not a Lender, an Affiliate of such Lender or
an Approved Fund with respect to such Lender.

 

(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 in the amount of $3,500; provided,
however, that the Administrative Agent may, in its sole discretion,
elect to waive such processing and recordation fee in the case of any
assignment.  The assignee, if it is not a
Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.

 

(v)           No Assignment to Borrower.  No such assignment shall be made to any
Borrower or any Borrower’s 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 subsection
(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 Credit Agreement and, to the extent of the interest assigned by such Assignment
and Assumption, have the rights and obligations of a Lender under this Credit
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 Credit Agreement (and, in the case of an Assignment and
Assumption covering all of the assigning Lender’s rights and obligations under
this Credit Agreement, such Lender shall cease to be a party hereto) but shall
continue to be entitled to the benefits of Sections 3.01, 3.04, 3.05,
and 10.04 with respect to facts and circumstances occurring prior to the
effective date of such assignment.  Upon
request, the Borrowers (at their expense) shall execute and deliver a Revolving
Note to the assignee Lender.  Any
assignment or transfer by a Lender of rights or obligations under this Credit
Agreement that does not comply with this subsection shall be treated for
purposes of this Credit Agreement as a sale by such Lender of a participation
in such rights and obligations in accordance with subsection (d) of
this Section.

 

(c)           Register.  The Administrative Agent, acting solely for
this purpose as an agent of the Borrowers, shall maintain at the Administrative
Agent’s Office 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
Revolving 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, absent 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
Credit 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, any Borrower or the Administrative Agent, sell
participations to any Person (other than a natural person or the 

 

66

 

Borrowers
or any of the Borrowers’ respective Affiliates or Subsidiaries) (each, a “Participant”)
in all or a portion of such Lender’s rights and/or obligations under this
Credit 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 Credit 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, the
Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this Credit
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 the Loan
Documents and to approve any amendment, modification or waiver of any provision
of the Loan Documents; provided that such agreement or instrument may
provide that such Lender will not, without the consent of the Participant,
agree to any amendment, waiver or other modification described in the first
proviso to Section 10.01 that affects such Participant.  Subject to subsection (e) of this
Section, the Borrowers agree that each Participant shall be entitled to the benefits
of Sections 3.01, 3.04 and 3.05 to the same extent as if
it were a Lender and had acquired its interest by assignment pursuant to subsection
(b) of this Section.  To the
extent permitted by law, each Participant also shall be entitled to the benefits
of Section 10.08 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 Section 3.01
or 3.04 than the applicable Lender would have been entitled to receive
with respect to the participation sold to such Participant.  A Participant shall not be entitled to the
benefits of Section 3.01 unless the Parent Borrower is notified of
the participation sold to such Participant and such Participant agrees, for the
benefit of the Borrowers, to comply with Section 3.01(e) 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 Credit Agreement (including under its Revolving Note(s), if any) 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.

 

10.07      Treatment of Certain Information;
Confidentiality.

 

Each
of the Administrative Agent and the Lenders agrees to maintain the
confidentiality of the Information (as defined below), except that Information
may be disclosed (a) to its Affiliates and to its and its Affiliates’
respective partners, directors, officers, employees, agents, trustees, advisors
and 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 or under any other Loan Document or any
action or proceeding relating to this Credit Agreement or any other Loan
Document or the enforcement of rights hereunder or thereunder, (f) subject
to an agreement containing provisions substantially the same as those of this
Section, to (i) any assignee of or Participant in, or any prospective
assignee of or Participant in, any of its rights or obligations under this Credit
Agreement or (ii) any actual or prospective counterparty (or its advisors)
to any swap or derivative transaction relating to the Borrowers and their
obligations, (g) with the consent of the Parent Borrower or (h) to
the extent such Information (x) becomes publicly available other than as a
result of a breach of this Section or (y) 

 

67

 

becomes
available to the Administrative Agent, any Lender or any of their respective
Affiliates on a nonconfidential basis from a source other than a Borrower.

 

For
purposes of this Section, “Information” means all information received
from the Borrowers or any Subsidiary relating to the Borrowers or any
Subsidiary or any of their respective businesses, other than any such
information that is available to the Administrative Agent or any Lender on a
nonconfidential basis prior to disclosure by the Borrowers or any
Subsidiary.  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.

 

Each
of the Administrative Agent and the Lenders acknowledges that (a) the
Information may include material non public information concerning a Borrower
or a Subsidiary, as the case may be, (b) it has developed compliance
procedures regarding the use of material non public information and (c) it
will handle such material non public information in accordance with applicable
Law, including United States federal and state securities Laws.

 

10.08      Right of Setoff.

 

If
an Event of Default shall have occurred and be continuing, each 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 or any such Affiliate to or
for the credit or the account of any Borrower or any other Loan Party against
any and all of the obligations of such Borrower or such Loan Party now or
hereafter existing under this Credit Agreement or any other Loan Document to
such Lender, irrespective of whether or not such Lender shall have made any
demand under this Credit Agreement or any other Loan Document and although such
obligations of such Borrower or such Loan Party may be contingent or unmatured
or are owed to a branch or office of such Lender different from the branch or
office holding such deposit or obligated on such indebtedness.  The rights of each Lender and their
respective Affiliates under this Section are in addition to other rights
and remedies (including other rights of setoff) that such Lender or their
respective Affiliates may have.  Each
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.

 

10.09      Interest Rate Limitation.

 

Notwithstanding
anything to the contrary contained in any Loan Document, the interest paid or
agreed to be paid under the Loan Documents shall not exceed the maximum rate of
non-usurious interest permitted by applicable Law (the “Maximum Rate”).  If the Administrative Agent or any Lender
shall receive interest in an amount that exceeds the Maximum Rate, the excess
interest shall be applied to the principal of the Loans or, if it exceeds such
unpaid principal, refunded to the Borrowers. 
In determining whether the interest contracted for, charged, or received
by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person
may, to the extent permitted by applicable Law, (a) characterize any
payment that is not principal as an expense, fee, or premium rather than
interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize,
prorate, allocate, and spread in equal or unequal parts the total amount of
interest throughout the contemplated term of the Obligations hereunder.

 

68

 

10.10      Counterparts; Integration;
Effectiveness.

 

This
Credit 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 Credit Agreement and the other Loan
Documents 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 5.01,
this Credit 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
Credit Agreement by telecopy or other electronic imaging means shall be
effective as delivery of a manually executed counterpart of this Credit
Agreement.

 

10.11      Survival of Representations and
Warranties.

 

All
representations and warranties made hereunder and in any other Loan Document or
other document delivered pursuant hereto or thereto or in connection herewith
or therewith shall survive the execution and delivery hereof and thereof.  Such representations and warranties have been
or will be relied upon by the Administrative Agent and each Lender, regardless
of any investigation made by the Administrative Agent or any Lender or on their
behalf and notwithstanding that the Administrative Agent or any Lender may have
had notice or knowledge of any Default at the time of any Credit Extension, and
shall continue in full force and effect as long as any Loan or any other Obligation
hereunder shall remain unpaid or unsatisfied.

 

10.12      Severability.

 

If
any provision of this Credit Agreement or the other Loan Documents is held to
be illegal, invalid or unenforceable, (a) the legality, validity and
enforceability of the remaining provisions of this Credit Agreement and the
other Loan Documents shall not be affected or impaired thereby and (b) the
parties shall endeavor in good faith negotiations to replace the illegal,
invalid or unenforceable provisions with valid provisions the economic effect
of which comes as close as possible to that of the illegal, invalid or
unenforceable provisions.  The invalidity
of a provision in a particular jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

10.13      Replacement of Lenders.

 

If
(a) any Lender requests compensation under Section 3.04, (b) any
Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 3.01,
(c) a Lender (a “Non-Consenting Lender”) does not consent to a
proposed amendment, consent, change, waiver, discharge or termination with
respect to any Loan Document that has been approved by the Required Lenders
(including, without limitation, by a failure to respond in writing to a
proposed amendment by the date and time specified by the Administrative Agent)
as provided in Section 10.01 but requires unanimous consent of all
Lenders or all Lenders of a particular class of loans, or (d) any Lender
is a Defaulting Lender, then the Parent Borrower may, at its 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 10.06;
provided that the consent of the Administrative Agent shall not be unreasonably
withheld), all of its interests, rights and obligations under this Credit
Agreement and the related Loan Documents to an assignee that shall assume such
obligations (which assignee may be another Lender, if a Lender accepts such
assignment), provided that:

 

69

 

(i)            the respective Borrower shall have
paid to the Administrative Agent the assignment fee specified in Section 10.06(b)(iv);

 

(ii)           such Lender shall have received
payment of an amount equal to the outstanding principal of its Loans and
accrued interest thereon, accrued fees and all other amounts payable to it
hereunder and under the other Loan Documents (including any amounts under Section 3.05)
from the assignee (to the extent of such outstanding principal and accrued
interest and fees) or the Borrowers (in the case of all other amounts);

 

(iii)          in the case of any such assignment
resulting from a claim for compensation under Section 3.04 or
payments required to be made pursuant to Section 3.01, such
assignment will result in a reduction in such compensation or payments
thereafter;

 

(iv)          such assignment does not conflict with
applicable Laws; and

 

(v)           in the case of any such assignment
resulting from a Non-Consenting Lender’s failure to consent to a proposed
amendment, consent change, waiver, discharge or termination with respect to any
Loan Document, the applicable replacement bank or financial institution
consents to the proposed change, waiver, discharge or termination;

 

provided that the
failure by such Non-Consenting Lender to execute and deliver an Assignment and
Assumption shall not impair the validity of the removal of such Non-Consenting
Lender and the mandatory assignment of such Non-Consenting Lender’s Revolving
Commitments and outstanding Loans.

 

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 respective Borrower to require such assignment and
delegation cease to apply.

 

10.14      Governing Law; Jurisdiction; Etc.

 

(a)           GOVERNING
LAW.  THIS CREDIT AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
YORK.

 

(b)           SUBMISSION
TO JURISDICTION.  EACH OF THE
BORROWERS AND THE OTHER LOAN PARTIES IRREVOCABLY AND UNCONDITIONALLY SUBMITS,
FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF
THE STATE OF NEW YORK SITTING IN THE BOROUGH OF MANHATTAN AND OF THE UNITED
STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF SUCH STATE AND ANY APPELLATE
COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING
TO THIS CREDIT AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR
ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND
UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR
PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT.  EACH OF THE PARTIES HERETO AGREES THAT A
FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE
ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER
PROVIDED BY LAW.  NOTHING IN THIS CREDIT
AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE
ADMINISTRATIVE AGENT OR ANY LENDER MAY OTHERWISE HAVE TO BRING ANY 

 

70

 

ACTION
OR PROCEEDING RELATING TO THIS CREDIT AGREEMENT OR ANY OTHER LOAN DOCUMENT
AGAINST THE BORROWERS OR ANY OTHER LOAN PARTY OR ITS PROPERTIES IN THE COURTS
OF ANY JURISDICTION.

 

(c)           WAIVER
OF VENUE.  EACH OF THE BORROWERS AND
THE OTHER LOAN PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR
HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT
OF OR RELATING TO THIS CREDIT AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT
REFERRED TO IN PARAGRAPH (B) OF THIS SECTION.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN
INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH
COURT.

 

(d)           SERVICE
OF PROCESS.  EACH PARTY HERETO
IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES
IN SECTION 10.02.  NOTHING IN
THIS CREDIT AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

 

10.15      Waiver of Jury Trial.

 

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 CREDIT
AGREEMENT OR ANY OTHER LOAN 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 CREDIT
AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

10.16      No Advisory or Fiduciary Responsibility.

 

In
connection with all aspects of each transaction contemplated hereby (including
in connection with any amendment, waiver or other modification hereof or of any
other Loan Document), each of the Borrowers and the other Loan Parties
acknowledges and agrees that: (a) (i) the arranging and other
services regarding this Credit Agreement provided by the Administrative Agent
and the Arranger, are arm’s-length commercial transactions between the
Borrowers, the other Loan Parties and their respective Affiliates, on the one
hand, and the Administrative Agent and 
the Arranger, on the other hand, (ii) each of the Borrowers and the
other Loan Parties has consulted its own legal, accounting, regulatory and tax
advisors to the extent it has deemed appropriate, and (iii) each of the
Borrowers and the other Loan Parties is capable of evaluating, and understands
and accepts, the terms, risks and conditions of the transactions contemplated
hereby and by the other Loan Documents; (b) (i) the Administrative
Agent and the Arranger, each is and has been acting solely as a principal and,
except as expressly agreed in writing by the relevant parties, has not been, is
not, and will not be acting as an advisor, agent or fiduciary for the
Borrowers, any other Loan Party or any of their respective Affiliates, or any
other Person and (ii) neither the Administrative Agent nor the Arranger
has any obligation to the Borrowers, any other Loan Party or any of their
respective Affiliates with respect to the transactions contemplated hereby
except those 

 

71

 

obligations
expressly set forth herein and in the other Loan Documents; and (c) the
Administrative Agent and the Arranger and their respective Affiliates may be
engaged in a broad range of transactions that involve interests that differ
from those of the Borrowers, the other Loan Parties and their respective
Affiliates, and neither the Administrative Agent nor the Arranger has any
obligation to disclose any of such interests to the Borrowers, any other Loan
Party or any of their respective Affiliates. 
To the fullest extent permitted by law, each of the Borrowers and the
other Loan Parties hereby waives and releases any claims that it may have
against the Administrative Agent and the Arranger with respect to any breach or
alleged breach of agency or fiduciary duty in connection with any aspect of any
transaction contemplated hereby.

 

10.17      Electronic Execution of Assignments and
Certain Other Documents.

 

The
words “execution,” “signed,” “signature” and words of like import in any
Assignment and Assumption or in any amendment or other modification hereof
(including waivers and consents) 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.

 

10.18      USA PATRIOT Act.

 

Each
Lender that is subject to the PATRIOT Act (as hereinafter defined) and the
Administrative Agent (for itself and not on behalf of any Lender) hereby
notifies the Borrowers that pursuant to the requirements of the USA Patriot Act
(Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot
Act”), it is required to obtain, verify and record information that
identifies the Borrowers, which information includes the name and address of
each Borrower and other information that will allow such Lender or the
Administrative Agent, as applicable, to identify such Borrower in accordance
with the Act.  Each Borrower shall,
promptly following a request by the Administrative Agent or any Lender, provide
all documentation and other information that the Administrative Agent or such
Lender requests in order to comply with its ongoing obligations under applicable
“know your customer” and anti-money laundering rules and regulations,
including the Act.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

72

 

IN WITNESS WHEREOF, the
parties hereto have caused this Credit Agreement to be duly executed as of the
date first above written.

 

	
  BORROWERS:

  	
  MAC-GRAY
  CORPORATION,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael J. Shea

  
	
   

  	
  Name:  Michael J. Shea

  
	
   

  	
  Title:  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  MAC-GRAY
  SERVICES, INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael J. Shea

  
	
   

  	
  Name:  Michael J. Shea

  
	
   

  	
  Title:  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  INTIRION
  CORPORATION,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael J. Shea

  
	
   

  	
  Name:  Michael J. Shea

  
	
   

  	
  Title:  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
  ADMINISTRATIVE
  AGENT:

  	
  BANK
  OF AMERICA, N.A.,

  
	
   

  	
  as Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  William
  Faidell, Jr.

  
	
   

  	
  Name:

  	
  William
  Faidell, Jr.

  
	
   

  	
  Title:

  	
  Assistant Vice
  President

  	 

	
   

  	
   

  
	
  LENDERS:

  	
  BANK
  OF AMERICA, N.A.,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Christopher
  S. Allen

  
	
   

  	
  Name:

  	
  Christopher S. Allen

  
	
   

  	
  Title:

  	
  Senior Vice President

  
					

 

 

	
  LENDERS:

  	
  FIFTH
  THIRD BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Henry Petrillo

  	
   

  
	
   

  	
  Name:

  	
  Henry Petrillo

  
	
   

  	
  Title:

  	
  Managing Director

  
					

 

 

	
   

  	
  KEYBANK
  NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mitchell B.
  Feldman

  
	
   

  	
  Name:

  	
  Mitchell B. Feldman

  
	
   

  	
  Title:

  	
  Director

  
				

 

 

	
   

  	
  WELLS
  FARGO BANK N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael
  Sweeney

  
	
   

  	
  Name:

  	
  Michael Sweeney

  
	
   

  	
  Title:

  	
  Vice President

  
				

 

 

	
   

  	
  TD
  BANKNORTH NA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey R.
  Westling

  
	
   

  	
  Name:

  	
  Jeffrey R. Westling

  
	
   

  	
  Title:

  	
  Senior Vice President

  
				

 

 

	
   

  	
  EASTERN
  BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert J.
  Moodie

  
	
   

  	
  Name:

  	
  Robert J. Moodie

  
	
   

  	
  Title:

  	
  Senior Vice President

  
				

 

 

	
   

  	
  SOVEREIGN
  BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Penny Garver

  
	
   

  	
  Name:

  	
  Penny Garver

  
	
   

  	
  Title:

  	
  Senior Vice President

  
				

 

 

	
   

  	
  ALLIED
  IRISH BANKS, P.L.C.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Joanne Gibson

  	
  Des Brennan

  	
   

  
	
   

  	
  Name:

  	
  Joanne Gibson

  	
  Des Brennan

  	
   

  
	
   

  	
  Title:

  	
  Assistant V.P.

  	
  Assistant V.P.

  	
   

  
						

 

 

	
   

  	
  RBS
  CITIZENS, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christopher
  J. Wickles

  
	
   

  	
  Name:

  	
  Christopher J. Wickles

  
	
   

  	
  Title:

  	
  Senior Vice President

  
				

 

 

	
   

  	
  SUNTRUST
  BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ J. Matthew
  Rowand

  
	
   

  	
  Name:

  	
  J. Matthew Rowand

  
	
   

  	
  Title:

  	
  Vice President

  
				

 

 

	
   

  	
  BANK
  OF THE WEST

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sylvia Ponce

  
	
   

  	
  Name:

  	
  Slyvia Ponce

  
	
   

  	
  Title:

  	
  AVP

  
				

 

 

 

	
   

  	
  BROWN
  BROTHERS HARRIMAN & CO.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Suzanne
  Dwyer

  
	
   

  	
  Name:

  	
  Suzanne Dwyer

  
	
   

  	
  Title:

  	
  Senior Vice President

  
				

 

 

	
   

  	
  SALEM
  FIVE CENTS SAVINGS BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joseph V.
  Leary

  
	
   

  	
  Name:

  	
  Joseph V. Leary

  
	
   

  	
  Title:

  	
  Senior Vice President

  
				

 

 

	
   

  	
  HSBC
  BANK USA, NATIONAL

  ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Elise M.
  Russo

  
	
   

  	
  Name:

  	
  Elise M. Russo

  
	
   

  	
  Title:

  	
  First Vice President

  
				

 

 

	
   

  	
  FIRSTRUST
  BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ellen Frank

  
	
   

  	
  Name:

  	
  Ellen Frank

  
	
   

  	
  Title:

  	
  Vice PresidentExhibit 10.9

 

GUARANTEE AGREEMENT

 

dated as of

 

April 1, 2008,

 

among

 

MAC-GRAY CORPORATION,

MAC-GRAY SERVICES, INC.,

INTIRION CORPORATION,

 

THE SUBSIDIARIES OF THE BORROWERS

IDENTIFIED HEREIN

 

and

BANK OF AMERICA, N.A.,

as Administrative Agent

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I
  Definitions

  	
   

  	
   

  	
  1

  
	
  SECTION 1.01.

  	
   

  	
  Credit
  Agreement

  	
  1

  
	
  SECTION 1.02.

  	
   

  	
  Other
  Defined Terms

  	
  1

  
	
  ARTICLE
  II Guarantee

  	
   

  	
   

  	
  2

  
	
  SECTION 2.01.

  	
   

  	
  Guarantee

  	
  2

  
	
  SECTION 2.02.

  	
   

  	
  Guarantee
  of Payment

  	
  2

  
	
  SECTION 2.03.

  	
   

  	
  No
  Limitations

  	
  3

  
	
  SECTION 2.04.

  	
   

  	
  Reinstatement

  	
  3

  
	
  SECTION 2.05.

  	
   

  	
  Agreement
  To Pay; Subrogation

  	
  4

  
	
  SECTION 2.06.

  	
   

  	
  Information

  	
  4

  
	
  SECTION 2.07.

  	
   

  	
  Certain
  Waivers

  	
  4

  
	
  SECTION 2.08.

  	
   

  	
  Remedies

  	
  4

  
	
  SECTION 2.09.

  	
   

  	
  Rights of
  Contribution

  	
  5

  
	
  ARTICLE
  III [Reserved]

  	
   

  	
   

  	
  5

  
	
  ARTICLE
  IV [Reserved]

  	
   

  	
   

  	
  5

  
	
  ARTICLE V
  [Reserved]

  	
   

  	
   

  	
  5

  
	
  ARTICLE VI Indemnity, Subrogation
  and Subordination 

  	
  5

  
	
  SECTION 6.01

  	
   

  	
  Indemnity
  and Subrogation

  	
  5

  
	
  SECTION 6.02.

  	
   

  	
  Contribution
  and Subrogation

  	
  5

  
	
  SECTION 6.03.

  	
   

  	
  Subordination

  	
  6

  
	
  ARTICLE
  VII Miscellaneous

  	
   

  	
  6

  
	
  SECTION 7.01

  	
   

  	
  Notices

  	
  6

  
	
  SECTION 7.02.

  	
   

  	
  Waivers;
  Amendment

  	
  6

  
	
  SECTION 7.03.

  	
   

  	
  Administrative
  Agent’s Fees and Expenses; Indemnification

  	
  6

  
	
  SECTION 7.04.

  	
   

  	
  Successors
  and Assigns

  	
  7

  
	
  SECTION 7.05.

  	
   

  	
  Survival
  of Agreement

  	
  7

  
	
  SECTION 7.06.

  	
   

  	
  Counterparts;
  Effectiveness; Several Agreement

  	
  7

  
	
  SECTION 7.07.

  	
   

  	
  Severability

  	
  7

  
	
  SECTION 7.08.

  	
   

  	
  Right of
  Set-Off

  	
  8

  
	
  SECTION 7.09.

  	
   

  	
  Governing
  Law; Jurisdiction; Consent to Service of Process

  	
  8

  
	
  SECTION 7.10.

  	
   

  	
  WAIVER OF
  JURY TRIAL

  	
  9

  
	
  SECTION 7.11.

  	
   

  	
  Headings

  	
  9

  
	
  SECTION 7.12.

  	
   

  	
  Guarantee
  Absolute

  	
  9

  
	
  SECTION 7.13.

  	
   

  	
  Termination
  or Release

  	
  9

  
	
  SECTION 7.14.

  	
   

  	
  Additional
  Subsidiaries

  	
  9

  
	
  SECTION 7.15.

  	
   

  	
  [Reserved]

  	
  10

  
	
  SECTION 7.16.

  	
   

  	
  Joint and
  Several Obligations of Guarantors

  	
  10

  
					

 

 

	
  Schedules

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule I

  	
   

  	
  Guarantors

  
	
   

  	
   

  	
   

  
	
  Exhibits

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit I

  	
   

  	
  Form of Supplement

  

 

 

GUARANTEE AGREEMENT dated as of April 1, 2008
(as amended, restated, supplemented and otherwise modified from time to time,
this “Agreement”, among Mac-Gray Corporation (the “Parent Borrower”),
Mac-Gray Services, Inc. (“Services”), Intirion Corporation
(together with the Parent Borrower and Services, the “Borrowers”), the
Subsidiaries of the Borrowers identified herein and Bank of America, N.A., as
Administrative Agent (together with its successors in such capacity, the “Administrative
Agent”).

 

Reference is made to the Senior Unsecured Credit
Agreement dated as of April 1, 2008 (as amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”), among the
Borrowers, the Lenders party thereto and Bank of America, N.A., as
Administrative Agent and Administrative Agent. The Lenders have agreed to
extend credit to the Borrowers subject to the terms and conditions set forth in
the Credit Agreement. The obligations of the Lenders to extend such credit are
conditioned upon, among other things, the execution and delivery of this
Agreement. The Guarantors are subsidiaries and affiliates of the Borrowers,
will derive substantial benefits from the extension of credit to the Borrowers
pursuant to the Credit Agreement and are willing to execute and deliver this
Agreement in order to induce the Lenders to extend such credit. Accordingly,
the parties hereto agree as follows:

 

ARTICLE
I

Definitions

 

SECTION 1.01.    Credit Agreement. (a) Capitalized terms used in this
Agreement and not otherwise defined herein have the meanings specified in the
Credit Agreement.

 

(b)           The rules of construction specified in Section 1.02 of the
Credit Agreement also apply to this Agreement.

 

SECTION 1.02.    Other Defined Terms. As used in this Agreement, the following
terms have the meanings specified below:

 

“Agreement” has the meaning assigned to such
term in the preliminary statement of this Agreement.

 

“Claiming Party” has the meaning assigned to
such term in Section 6.02.

 

“Credit Agreement” has the meaning assigned
to such term in the preliminary statement of this Agreement.

 

“Guaranteed Parties” means (a) the
Lenders (and any Affiliate of any Lender to which any obligation referred to in
clause (c) of the definition of the term “Obligations” is owed), (b) the
Administrative Agent, (c) each counterparty to any Swap Agreement with a
Loan Party the obligations under which constitute Obligations, (f) the
beneficiaries of each indemnification obligation undertaken by any Loan Party
under any Loan Document and (g) the successors and assigns of each of the
foregoing.

 

“Guarantors” means (a) the Borrowers, (b) the
Subsidiaries identified on Schedule I and (c) each other Subsidiary
that becomes a party to this Agreement as a Guarantor after the Closing Date.

 

“Loan Document Obligations” means (a) the
due and punctual payment by the Borrowers of (i) the principal of and
interest (including interest accruing during the pendency of any bankruptcy,
insolvency, receivership or other similar proceeding, regardless of whether
allowed or allowable in such 

 

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proceeding) on the Loans, when and as due,
whether at maturity, by acceleration, upon one or more dates set for prepayment
or otherwise and (ii) all other monetary obligations of any of the
Borrowers to any of the Guaranteed Parties under the Credit Agreement and each
of the other Loan Documents, including obligations to pay fees, expense
reimbursement obligations and indemnification obligations, whether primary,
secondary, direct, contingent, fixed or otherwise (including monetary
obligations incurred during the pendency of any bankruptcy, insolvency,
receivership or other similar proceeding, regardless of whether allowed or
allowable in such proceeding), (b) the due and punctual performance of all
other obligations of the Borrowers under or pursuant to the Credit Agreement
and each of the other Loan Documents and (c) the due and punctual payment
and performance of all the obligations of each other Loan Party under or pursuant
to this Agreement and each of the other Loan Documents.

 

“Obligations” means (a) Loan Document
Obligations, (b) the due and punctual payment and performance of all
obligations of each Loan Party under or in connection with each Swap Agreement
that (i) is in effect on the Closing Date with a counterparty that is a
Lender or an Affiliate of a Lender as of the Closing Date or (ii) is
entered into after the Closing Date with any counterparty that is a Lender or
an Affiliate of a Lender at the time such Swap Agreement is entered into (even
if that counterparty should subsequently cease to be a Lender (or an Affiliate
of a Lender)) and (c) the due and punctual payment and performance of all
obligations in respect of overdrafts and related liabilities owed to the
Administrative Agent (in its individual capacity), any Lender or any of their
respective Affiliates and arising from treasury, depositary and cash management
services in connection with any automated clearinghouse transfers of funds.

 

ARTICLE
II

Guarantee

 

SECTION 2.01.    Guarantee.
Each Guarantor unconditionally guarantees, jointly with the other Guarantors
and severally, as a primary obligor and not merely as a surety, the due and
punctual payment in full when due and performance of the Obligations. Each of
the Guarantors further agrees that the Obligations may be extended or renewed,
in whole or in part, without notice to or further assent from it, and that it
will remain bound upon its guarantee notwithstanding any extension or renewal
of any Obligation. Each of the Guarantors waives diligence, presentment to,
demand of payment from and protest to the Borrowers or any other Loan Party of
any of the Obligations, and also waives notice of acceptance of its guarantee
and notice of protest for nonpayment and any requirement that the
Administrative Agent or any Guaranteed Party exhaust any right, power or remedy
or proceed against any Person under any of the Loan Documents or any other
documents relating to the Obligations or any other agreement or instrument
referred to therein, or against any other Person under any other guarantee of,
or security for, any of the Obligations.

 

SECTION 2.02.    Guarantee of Payment. (a) Each of the Guarantors further agrees that
its guarantee hereunder constitutes a continuing guarantee of payment in full
when due (whether at stated maturity, as a mandatory prepayment, by
acceleration, as a mandatory cash collateralization or otherwise) strictly in
accordance with the terms thereof and not of collection, and waives any right to
require that any resort be had by the Administrative Agent or any other
Guaranteed Party to any security held for the payment of the Obligations or to
any balance of any deposit account or credit on the books of the Administrative
Agent or any other Guaranteed Party in favor of the Borrowers or any other
Person. The Guarantors hereby further agree that if any of the Obligations are
not paid in full when due (whether at stated maturity, as a mandatory
prepayment, by acceleration, as a mandatory cash collateralization or
otherwise), the Guarantors will, jointly and severally, promptly pay the same,
without any demand or notice whatsoever, and that in the case of any extension
of time of payment or renewal of any of the Obligations, the 

 

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same will be promptly paid in full when due
(whether at extended maturity, as a mandatory prepayment, by acceleration, as a
mandatory cash collateralization or otherwise) in accordance with the terms of
such extension or renewal.

 

(b)           Notwithstanding any provision to the contrary contained herein, in any
other of the Loan Documents, Swap Agreements or other documents relating to the
Obligations, the obligations of each Guarantor under this Agreement and the
other Loan Documents shall be limited to an aggregate amount equal to the
largest amount that would not render such obligations subject to avoidance
under the Debtor Relief Laws or any comparable provisions of any applicable
state law.

 

SECTION 2.03.    No Limitations. (a)  Except
for termination of a Guarantor’s obligations hereunder as expressly provided in
Section 7.13, the obligations of each Guarantor hereunder shall not
be subject to any reduction, limitation, impairment or termination for any
reason, including any claim of waiver, release, surrender, alteration or
compromise, and shall not be subject to any defense or set-off, counterclaim,
recoupment or termination whatsoever by reason of the invalidity, illegality or
unenforceability of the Obligations or otherwise. Without limiting the
generality of the foregoing, the obligations of each Guarantor hereunder shall
not be discharged or impaired or otherwise affected by (i) the failure of
the Administrative Agent or any other Guaranteed Party to assert any claim or
demand or to enforce any right or remedy under the provisions of any Loan
Document or otherwise; (ii) any rescission, waiver, amendment or
modification of, or any release from any of the terms or provisions of, any
Loan Document or any other agreement, including with respect to any other
Guarantor under this Agreement; (iii) the release of any security held by
the Administrative Agent or any other Guaranteed Party for the Obligations or
any of them; (iv) any default, failure or delay, willful or otherwise, in
the performance of the Obligations; (v) any Lien granted to, or in favor
of, the Administrative Agent or any Guaranteed Party as security for any of the
Obligations shall fail to attach or be perfected; (vi) any of the
Obligations shall be determined to be void or voidable (including, without
limitation, for the benefit of any creditor of any Guarantor) or shall be
subordinated to the claims of any Person (including, without limitation, any
creditor of any Guarantor); or (vii) any other act or omission that may or
might in any manner or to any extent vary the risk of any Guarantor or
otherwise operate as a discharge of any Guarantor as a matter of law or equity
(other than the indefeasible payment in full in cash of all the Obligations).

 

(b)           To the fullest extent permitted by applicable law, each Guarantor
waives any defense based on or arising out of any defense of the Borrowers or
any other Loan Party or the unenforceability of the Obligations or any part
thereof from any cause, or the cessation from any cause of the liability of the
Borrowers or any other Loan Party, other than the indefeasible payment in full
(other than contingent indemnification obligations that survive the termination
of the Loan Documents) in cash of all the Obligations, irrespective of any
other circumstance whatsoever that might otherwise constitute a legal or
equitable discharge or defense of a surety or guarantor, it being the intent of
this Section 2.03 that the obligations of the Guarantors hereunder
shall be absolute and unconditional under any and all circumstances. The
Administrative Agent and the other Guaranteed Parties may, at their election,
compromise or adjust any part of the Obligations, make any other accommodation
with the Borrowers or any other Loan Party or exercise any other right or
remedy available to them against the Borrowers or any other Loan Party, without
affecting or impairing in any way the liability of any Guarantor hereunder
except to the extent the Obligations have been fully and indefeasibly paid in
full in cash. To the fullest extent permitted by applicable law, each Guarantor
waives any defense arising out of any such election even though such election
operates, pursuant to applicable law, to impair or to extinguish any right of
reimbursement or subrogation or other right or remedy of such Guarantor against
the Borrowers or any other Loan Party, as the case may be, or any security.

 

SECTION 2.04.    Reinstatement. Each of the Guarantors agrees that its
guarantee hereunder shall continue to be effective or be reinstated, as the
case may be, if at any time payment, or

 

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any part thereof, of any Obligation is
rescinded or must otherwise be restored by the Administrative Agent or any
other Guaranteed Party upon the bankruptcy or reorganization of the Borrowers,
any other Loan Party or otherwise. The obligations of the Guarantors under this
Article II shall be automatically reinstated if and to the extent
that for any reason any payment by or on behalf of any Person in respect of the
Obligations is rescinded or must be otherwise restored by any holder of any of
the Obligations, whether as a result of any proceedings pursuant to any Debtor
Relief Law or otherwise, and each Guarantor agrees that it will indemnify the
Administrative Agent and each Guaranteed Party on demand for all reasonable
costs and expenses (including all reasonable fees, expenses and disbursements
of one outside law firm and reasonably necessary special and local counsel)
incurred by the Administrative Agent or such Guaranteed Party in connection
with such rescission or restoration, including any such costs and expenses
incurred in defending against any claim alleging that such payment constituted
a preference, fraudulent transfer or similar payment under any Debtor Relief
Law.

 

SECTION 2.05.    Agreement To Pay; Subrogation. In furtherance of the foregoing and not in
limitation of any other right that the Administrative Agent or any other
Guaranteed Party has at law or in equity against any Guarantor by virtue
hereof, upon the failure of the Borrowers or any other Loan Party to pay any
Obligation when and as the same shall become due, whether at maturity, by
acceleration, after notice of prepayment or otherwise, each Guarantor hereby
promises to and will forthwith pay, or cause to be paid, to the Administrative
Agent for distribution to the applicable Guaranteed Parties in cash the amount
of such unpaid Obligation. Upon payment by any Guarantor of any sums to the
Administrative Agent as provided above, all rights of such Guarantor against
the Borrowers or any other Loan Party arising as a result thereof by way of
right of subrogation, contribution, reimbursement, indemnity or otherwise shall
in all respects be subject to Article VI.

 

SECTION 2.06.    Information. Each Guarantor assumes all responsibility
for being and keeping itself informed of the Borrowers’ and each other Loan
Party’s financial condition and assets, and of all other circumstances bearing
upon the risk of nonpayment of the Obligations and the nature, scope and extent
of the risks that such Guarantor assumes and incurs hereunder, and agrees that
none of the Administrative Agent or the other Guaranteed Parties will have any
duty to advise such Guarantor of information known to it or any of them regarding
such circumstances or risks.

 

SECTION 2.07.   Certain
Waivers. Each
Guarantor acknowledges and agrees that (a) the guaranty given hereby may
be enforced without the necessity of resorting to or otherwise exhausting
remedies in respect of any other security or collateral interests, and without
the necessity at any time of having to take recourse against any Borrower
hereunder or against any collateral securing the Obligations or otherwise, (b) it
will not assert any right to require the action first be taken against any
Borrower or any other Person (including any co-guarantor) or pursuit of any
other remedy or enforcement any other right and (c) nothing contained
herein shall prevent or limit action being taken against any Borrower
hereunder, under the other Loan Documents or the other documents and agreements
relating to the Obligations or from foreclosing on any security or collateral
interests relating hereto or thereto, or from exercising any other rights or
remedies available in respect thereof and the exercise of any such rights and
completion of any such foreclosure proceedings shall not constitute a discharge
of the Guarantors’ obligations hereunder unless as a result thereof, the
Obligations shall have been paid in full and the commitments relating thereto
shall have expired or been terminated, it being the purpose and intent that the
Guarantors’ obligations hereunder be absolute, irrevocable, independent and
unconditional under all circumstances.

 

SECTION 2.08.   Remedies. The Guarantors agree that, to the fullest
extent permitted by law, as between the Guarantors, on the one hand, and the
Administrative Agent and the Guaranteed Parties, on the other hand, the
Obligations may be declared to be forthwith due and payable to the extent
provided in Section 8.01 of the Credit Agreement (and shall be deemed to
have become automatically due and payable in the circumstances provided in Section 8.01
of the Credit Agreement) for purposes of this 

 

4

 

Article II, notwithstanding any stay, injunction or
other prohibition preventing such declaration (or preventing the Obligations
from becoming automatically due and payable) as against any other Person and
that, in the event of such declaration (or the Obligations being deemed to have
become automatically due and payable), the Obligations (whether or not due and
payable by any other Person) shall forthwith become due and payable by the
Guarantors for purposes of this Article II.

 

SECTION 2.09.   Rights
of Contribution. The Guarantors
hereby agree as among themselves that, in connection with payments made
hereunder, each Guarantor shall have a right of contribution from each other
Guarantor in accordance with applicable Law. Such contribution rights shall be
subordinate and subject in right of payment to the Obligations until such time
as the Obligations have been irrevocably paid in full (other than contingent
indemnification obligations that survive the termination of the Loan Documents)
and the commitments relating thereto shall have expired or been terminated, and
none of the Guarantors shall exercise any such contribution rights until the
Obligations have been irrevocably paid in full (other than contingent
indemnification obligations that survive the termination of the Loan Documents)
and the commitments relating thereto shall have expired or been terminated.

 

ARTICLE
III

[Reserved]

 

ARTICLE IV

[Reserved]

 

ARTICLE
V

[Reserved]

 

ARTICLE
VI

Indemnity, Subrogation and Subordination

 

SECTION 6.01     Indemnity and Subrogation. In addition to all such rights of indemnity
and subrogation as the Guarantors may have under applicable law (but subject to
Section 6.03), the Borrowers agree that in the event a payment
shall be made by any Guarantor under this Agreement, the Borrowers shall,
jointly and severally, indemnify such Guarantor for the full amount of such
payment and such Guarantor shall be subrogated to the rights of the Person to
whom such payment shall have been made to the extent of such payment.

 

SECTION 6.02.    Contribution and Subrogation. Each Guarantor (a “Contributing Party”)
agrees (subject to Section 6.03) that, in the event a payment shall
be made by any other Guarantor hereunder in respect of any Obligation and such
other Guarantor (the “Claiming Party”) shall not have been fully
indemnified by the Borrowers as provided in Section 6.01, the
Contributing Party shall indemnify the Claiming Party in an amount equal to the
amount of such payment multiplied by a fraction of which the numerator shall be
the net worth of the Contributing Party on the date hereof and the denominator
shall be the aggregate net worth of all the Guarantors on the date hereof (or,
in the case of any Guarantor becoming a party hereto pursuant to Section 7.14,
the date of the supplement hereto 

 

5

 

executed and delivered by such Guarantor). Any
Contributing Party making any payment to a Claiming Party pursuant to this Section 6.02
shall be subrogated to the rights of such Claiming Party under Section 6.01
to the extent of such payment.

 

SECTION 6.03.    Subordination. (a)  Notwithstanding any provision of
this Agreement to the contrary, all rights of the Guarantors under Sections
6.01 and 6.02 and all other rights of indemnity, contribution or
subrogation under applicable law or otherwise shall be fully subordinated to
the indefeasible payment in full in cash of the Obligations. No failure on the
part of any Borrower or any Guarantor to make the payments required by Sections
6.01 and 6.02 (or any other payments required under applicable law
or otherwise) shall in any respect limit the obligations and liabilities of any
Guarantor with respect to its obligations hereunder, and each Guarantor shall
remain liable for the full amount of the obligations of such Guarantor
hereunder.

 

(b)           Each Guarantor hereby agrees that all Indebtedness and other monetary
obligations owed by it to any other Guarantor or any other Subsidiary shall be
fully subordinated to the indefeasible payment in full in cash of the
Obligations, except as otherwise permitted under the Credit Agreement.

 

ARTICLE
VII

Miscellaneous

 

SECTION 7.01     Notices. All communications and notices hereunder shall (except as otherwise
expressly permitted herein) be in writing and given as provided in Section 10.02
of the Credit Agreement. All communications and notices hereunder to any
Guarantor shall be given to it in care of the Parent Borrower as provided in Section 10.02
of the Credit Agreement.

 

SECTION 7.02.    Waivers; Amendment. (a)  No failure or delay by the
Administrative Agent or any Lender in exercising any right or power hereunder
or under any other Loan Document shall operate as a waiver thereof, nor shall
any single or partial exercise of any such right or power, or any abandonment
or discontinuance of steps to enforce such a right or power, preclude any other
or further exercise thereof or the exercise of any other right or power. The
rights and remedies of the Administrative Agent and the Lenders hereunder and
under the other Loan Documents are cumulative and are not exclusive of any
rights or remedies that they would otherwise have. No waiver of any provision
of this Agreement or consent to any departure by any Loan Party therefrom shall
in any event be effective unless the same shall be permitted by paragraph (b) of
this Section 7.02, and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which given. No
notice or demand on any Loan Party in any case shall entitle any Loan Party to
any other or further notice or demand in similar or other circumstances.

 

(b)           Neither this Agreement nor any provision hereof may be waived, amended
or modified except pursuant to an agreement or agreements in writing entered
into by the Administrative Agent and the Loan Party or Loan Parties with
respect to which such waiver, amendment or modification is to apply, subject to
any consent required in accordance with Section 10.01 of the Credit
Agreement.

 

SECTION 7.03.    Administrative Agent’s Fees and Expenses;
Indemnification. (a) 
The parties hereto agree that the Administrative Agent shall be entitled to
reimbursement of its expenses incurred hereunder as provided in Section 10.04
of the Credit Agreement.

 

6

 

(b)           The parties hereto agree that the Administrative Agent and the other
Indemnitees (as defined in Section 10.04(b) of the Credit Agreement)
shall be entitled to indemnification as provided in Section 10.04 of the
Credit Agreement.

 

(c)           Any such amounts payable as provided hereunder shall be additional
Obligations. The provisions of this Section 7.03 shall remain
operative and in full force and effect regardless of the termination of this
Agreement or any other Loan Document, the consummation of the transactions
contemplated hereby, the repayment of any of the Obligations, the invalidity or
unenforceability of any term or provision of this Agreement or any other Loan
Document, or any investigation made by or on behalf of the Administrative Agent
or any other Guaranteed Party. All amounts due under this Section 7.03
shall be payable within 10 days of written demand therefor.

 

SECTION 7.04.    Successors and Assigns. Whenever in this Agreement any of the
parties hereto is referred to, such reference shall be deemed to include the permitted
successors and assigns of such party; and all covenants, promises and
agreements by or on behalf of any Guarantor or the Administrative Agent that
are contained in this Agreement shall bind and inure to the benefit of their
respective successors and assigns.

 

SECTION 7.05.    Survival of Agreement. All covenants, agreements, representations
and warranties made by the Loan Parties in the Loan Documents and in the
certificates or other instruments prepared or delivered in connection with or
pursuant to this Agreement or any other Loan Document shall be considered to
have been relied upon by the Lenders and the other Guaranteed Parties and shall
survive the execution and delivery of the Loan Documents and the making of any
Loans, regardless of any investigation made by any Lender or other Guaranteed
Party or on its behalf and shall continue in full force and effect as long as
the principal of or any accrued interest on any Loan or any fee or any other
amount payable under any Loan Document is outstanding and unpaid and so long as
the Commitments have not expired or terminated.

 

SECTION 7.06.    Counterparts; Effectiveness; Several Agreement. This Agreement may be executed in
counterparts, each of which shall constitute an original but all of which when
taken together shall constitute a single contract. Delivery of an executed
signature page to this Agreement by facsimile transmission shall be as
effective as delivery of a manually signed counterpart of this Agreement. This
Agreement shall become effective as to any Loan Party when a counterpart hereof
executed on behalf of such Loan Party shall have been delivered to the
Administrative Agent and a counterpart hereof shall have been executed on
behalf of the Administrative Agent, and thereafter shall be binding upon such
Loan Party and the Administrative Agent and their respective permitted
successors and assigns, and shall inure to the benefit of such Loan Party, the
Administrative Agent and the other Guaranteed Parties and their respective
successors and assigns, except that no Loan Party shall have the right to
assign or transfer its rights or obligations hereunder or any interest herein
except as expressly contemplated by this Agreement or the Credit Agreement. This
Agreement shall be construed as a separate agreement with respect to each Loan
Party and may be amended, modified, supplemented, waived or released with
respect to any Loan Party without the approval of any other Loan Party and
without affecting the obligations of any other Loan Party hereunder.

 

SECTION 7.07.    Severability. Any provision of this Agreement held to be
invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or
uneforceability without affecting the validity, legality and enforceability of
the remaining provisions hereof; and the invalidity of a particular provision
in a particular jurisdiction shall not invalidate such provision in any other
jurisdiction. The parties shall endeavor in good-faith negotiations to replace
the invalid, illegal or unenforceable provisions with valid provisions the
economic effect of which comes as close as possible to that of the invalid,
illegal or unenforceable provisions.

 

7

 

SECTION 7.08.    Right of Set-Off. If an Event of Default shall have occurred
and be continuing, each Lender and each of its Affiliates is hereby authorized
at any time and from time to time, to the fullest extent permitted by law, to
set off and apply any and all deposits (general or special, time or demand,
provisional or final) at any time held and other obligations at any time owing
by such Lender or Affiliate to or for the credit or the account of any
Guarantor against any of and all the obligations of such Guarantor now or
hereafter existing under this agreement owed to such Lender, irrespective of
whether or not such Lender shall have made any demand under this Agreement and
although such obligations may be unmatured. The rights of each Lender under this
Section 7.08 are in addition to other rights and remedies
(including other rights of set-off) which such Lender may have.

 

SECTION 7.09.    Governing Law; Jurisdiction; Consent to Service of
Process.

 

(a)           GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

(b)           SUBMISSION TO JURISDICTION. EACH OF THE GUARANTORS IRREVOCABLY AND
UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE
JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN THE BOROUGH OF
MANHATTAN AND OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF
SUCH STATE AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE
PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN
RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN
SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL
JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE
ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER
PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL
AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT OR ANY LENDER MAY OTHERWISE
HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER
LOAN DOCUMENT AGAINST THE BORROWERS OR ANY OTHER LOAN PARTY OR ITS PROPERTIES
IN THE COURTS OF ANY JURISDICTION.

 

(c)           WAIVER OF VENUE. EACH OF THE GUARANTORS IRREVOCABLY AND
UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER
LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF THIS SECTION 7.09.
EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE
MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

 

(d)           SERVICE OF PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO
SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.02 OF
THE CREDIT AGREEMENT. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY
PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

 

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SECTION 7.10.    WAIVER OF JURY TRIAL. 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 LOAN 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 LOAN DOCUMENTS BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 7.10.

 

SECTION 7.11.    Headings. Article and Section headings and
the Table of Contents used herein are for convenience of reference only, are
not part of this Agreement and are not to affect the construction of, or to be
taken into consideration in interpreting, this Agreement.

 

SECTION 7.12.    Guarantee Absolute. All rights of the Administrative Agent
hereunder and all obligations of each Guarantor hereunder shall be absolute and
unconditional irrespective of (a) any lack of validity or enforceability
of the Credit Agreement, any other Loan Document, any agreement with respect to
any of the Obligations or any other agreement or instrument relating to any of
the foregoing, (b) any change in the time, manner or place of payment of,
or in any other term of, all or any of the Obligations, or any other amendment
or waiver of or any consent to any departure from the Credit Agreement, any
other Loan Document or any other agreement or instrument, (c) any release
or amendment or waiver of or consent under or departure from any guarantee or
guaranteeing all or any of the Obligations, or (d) any other circumstance
that might otherwise constitute a defense available to, or a discharge of, any
Guarantor in respect of the Obligations or this Agreement.

 

SECTION 7.13.    Termination or Release. (a)  This Agreement and the Guarantees
made herein shall terminate when all the Obligations have been paid in full and
the Lenders have no further commitment to lend under the Credit Agreement.

 

(b)           A Guarantor shall automatically be released from its obligations
hereunder upon the consummation of any transaction permitted by the Credit
Agreement as a result of which such Guarantor ceases to be a Subsidiary of any
Borrower; provided that the Required Lenders shall have consented to such
transaction (to the extent required by the Credit Agreement) and the terms of
such consent did not provide otherwise.

 

(c)           In connection with any termination or release pursuant to paragraph (a) or
(b), the Administrative Agent shall promptly execute and deliver to any
Guarantor, at such Guarantor’s expense, all documents and instruments that such
Guarantor shall reasonably request to evidence such termination or release. Any
execution and delivery of documents pursuant to this Section 7.13
shall be without recourse to or warranty by the Administrative Agent.

 

SECTION 7.14.    Additional Subsidiaries. Pursuant to Section 6.12 of the Credit
Agreement, each Subsidiary of a Loan Party that was not in existence or not a
Subsidiary on the date of the Credit Agreement and is not a Foreign Subsidiary
is required to enter in this Agreement as a Guarantor upon becoming such a
Subsidiary. Upon execution and delivery by the Administrative Agent and a
Subsidiary of an instrument in the form of Exhibit I hereto, such
Subsidiary shall become a 

 

9

 

Guarantor hereunder with the same force and
effect as if originally named as a Guarantor herein. The execution and delivery
of any such instrument shall not require the consent of any other Loan Party
hereunder. The rights and obligations of each Loan Party hereunder shall remain
in full force and effect notwithstanding the addition of any new Loan Party as
a party to this Agreement.

 

SECTION 7.15.    [Reserved]

 

SECTION 7.16.    Joint and Several Obligations of Guarantors.

 

(a)           Subject to subsection (c) of this Section 7.16, each
of the Guarantors is accepting joint and several liability hereunder in
consideration of the financial accommodation to be provided by the Guaranteed
Parties, for the mutual benefit, directly and indirectly, of each of the
Guarantors and in consideration of the undertakings of each of the Guarantors
to accept joint and several liability for the obligations of each of them.

 

(b)           Subject to subsection (c) of this Section 7.16, each
of the Guarantors 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 Guarantors with respect to the payment and performance
of all of the Obligations arising under this Agreement, the other Loan
Documents and any other documents relating to the Obligations, it being the
intention of the parties hereto that all the Obligations shall be the joint and
several obligations of each of the Guarantors without preferences or
distinction among them.

 

(c)           Notwithstanding any provision to the contrary contained herein, in any
other of the Loan Documents or in any other documents relating to the
Obligations, the obligations of each Guarantor under the Credit Agreement, the
other Loan Documents and the other documents relating to the Obligations shall
be limited to an aggregate amount equal to the largest amount that would not
render such obligations subject to avoidance under Section 548 of the
United States Bankruptcy Code or any comparable provisions of any applicable
state law.

 

10

 

IN WITNESS WHEREOF, the parties hereto have duly
executed this Agreement as of the day and year first above written.

 

	
   

  	
  MAC-GRAY CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael J. Shea

  
	
   

  	
  Name: 

  	
  Michael J. Shea

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MAC-GRAY SERVICES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael J. Shea

  
	
   

  	
  Name: 

  	
  Michael J. Shea

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  INTIRION CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael J. Shea

  
	
   

  	
  Name

  	
  : Michael J. Shea

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A., as

  
	
   

  	
  Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William Faidell, Jr.

  
	
   

  	
  Name:

  	
  William Faidell, Jr.

  
	
   

  	
  Title:

  	
  Assistant Vice President

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