Document:

EXHIBIT
10.1

 

$110,000,000

AMENDED AND RESTATED CREDIT AGREEMENT

among

EINSTEIN NOAH RESTAURANT GROUP, INC.

(formerly known as NEW WORLD RESTAURANT GROUP, INC.),

as Borrower,

The Several Lenders

from Time to Time Parties Hereto,

and

WELLS FARGO FOOTHILL, INC.,

as Administrative Agent

Dated as of June 28, 2007

 

	
  TABLE OF CONTENTS

  
	
   

  
	
   

  
	
  

  	
  Page

  
	
   

  	
   

  
	
  Section 1.

  	
  DEFINITIONS

  	
  1

  
	
   

  	
   

  	
   

  
	
  1.1.

  	
  Defined Terms

  	
  1

  
	
  1.2.

  	
  Other
  Definitional Provisions

  	
  26

  
	
   

  	
   

  	
   

  
	
  Section 2.

  	
  AMOUNT AND TERMS
  OF TERM COMMITMENTS

  	
  28

  
	
   

  	
   

  	
   

  
	
  2.1.

  	
  Term Commitments

  	
  28

  
	
  2.2.

  	
  Procedure for
  Term Loan Borrowing

  	
  28

  
	
  2.3.

  	
  Repayment of
  Term Loans

  	
  29

  
	
   

  	
   

  	
   

  
	
  Section 3.

  	
  AMOUNT AND TERMS
  OF REVOLVING COMMITMENTS

  	
  29

  
	
   

  	
   

  	
   

  
	
  3.1.

  	
  Revolving
  Commitments

  	
  29

  
	
  3.2.

  	
  Procedure for
  Revolving Loan Borrowing

  	
  29

  
	
  3.3.

  	
  Swingline
  Commitment

  	
  30

  
	
  3.4.

  	
  Procedure for
  Swingline Borrowing; Refunding of Swingline Loans

  	
  30

  
	
  3.5.

  	
  Commitment Fees,
  etc

  	
  32

  
	
  3.6.

  	
  Termination or
  Reduction of Revolving Commitments

  	
  32

  
	
  3.7.

  	
  L/C Commitment

  	
  33

  
	
  3.8.

  	
  Procedure for
  Issuance of Letter of Credit

  	
  33

  
	
  3.9.

  	
  Fees and Other Charges

  	
  33

  
	
  3.10.

  	
  L/C
  Participations

  	
  34

  
	
  3.11.

  	
  Reimbursement
  Obligation of the Borrower

  	
  35

  
	
  3.12.

  	
  Obligations
  Absolute

  	
  35

  
	
  3.13.

  	
  Letter of Credit
  Payments

  	
  36

  
	
  3.14.

  	
  Applications

  	
  36

  
	
   

  	
   

  	
   

  
	
  Section 4.

  	
  GENERAL
  PROVISIONS APPLICABLE   TO LOANS AND
  LETTERS OF CREDIT

  	
  36

  
	
   

  	
   

  	
   

  
	
  4.1.

  	
  Optional
  Prepayments

  	
  36

  
	
  4.2.

  	
  Mandatory
  Prepayments and Commitment Reductions

  	
  37

  
	
  4.3.

  	
  Conversion and
  Continuation Options

  	
  38

  
	
  4.4.

  	
  Limitations on
  Eurodollar Tranches

  	
  38

  
	
  4.5.

  	
  Interest Rates
  and Payment Dates

  	
  39

  
	
  4.6.

  	
  Computation of
  Interest and Fees

  	
  40

  
	
  4.7.

  	
  Inability to
  Determine Interest Rate

  	
  40

  
	
  4.8.

  	
  Apportionment
  and Application

  	
  40

  
	
  4.9.

  	
  Requirements of
  Law

  	
  43

  
	
  4.10.

  	
  Taxes

  	
  45

  
	
  4.11.

  	
  Indemnity

  	
  46

  
	
  4.12.

  	
  Change of
  Lending Office

  	
  47

  
	
  4.13.

  	
  Replacement of
  Lenders

  	
  47

  

 

 i
 

 

	
  

  	
  Page

  
	
   

  	
   

  	
   

  
	
  4.14.

  	
  Evidence of Debt

  	
  47

  
	
  4.15.

  	
  Illegality

  	
  48

  
	
   

  	
   

  	
   

  
	
  Section 5.

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
  48

  
	
   

  	
   

  	
   

  
	
  5.1.

  	
  Financial
  Condition

  	
  48

  
	
  5.2.

  	
  No Change

  	
  49

  
	
  5.3.

  	
  Corporate
  Existence; Compliance with Law

  	
  49

  
	
  5.4.

  	
  Power; Authorization;
  Enforceable Obligations

  	
  49

  
	
  5.5.

  	
  No Legal Bar

  	
  50

  
	
  5.6.

  	
  Litigation

  	
  50

  
	
  5.7.

  	
  No Default

  	
  50

  
	
  5.8.

  	
  Ownership of
  Property; Liens

  	
  50

  
	
  5.9.

  	
  Intellectual
  Property

  	
  50

  
	
  5.10.

  	
  Taxes

  	
  51

  
	
  5.11.

  	
  Federal
  Regulations

  	
  51

  
	
  5.12.

  	
  Labor Matters

  	
  51

  
	
  5.13.

  	
  ERISA

  	
  51

  
	
  5.14.

  	
  Investment
  Company Act; Other Regulations

  	
  52

  
	
  5.15.

  	
  Subsidiaries

  	
  52

  
	
  5.16.

  	
  Use of Proceeds

  	
  52

  
	
  5.17.

  	
  Environmental
  Matters

  	
  52

  
	
  5.18.

  	
  Accuracy of
  Information, etc.

  	
  53

  
	
  5.19.

  	
  Security
  Documents

  	
  53

  
	
  5.20.

  	
  Solvency

  	
  54

  
	
  5.22.

  	
  Inactive
  Subsidiaries

  	
  54

  
	
  5.23.

  	
  Material
  Contracts

  	
  54

  
	
  5.24.

  	
  Bank Accounts

  	
  54

  
	
  5.25.

  	
  Insurance

  	
  54

  
	
   

  	
   

  	
   

  
	
  Section 6.

  	
  CONDITIONS
  PRECEDENT

  	
  54

  
	
   

  	
   

  	
   

  
	
  6.1.

  	
  Conditions to
  the Closing Date

  	
  54

  
	
  6.2.

  	
  Conditions to
  the Initial Borrowing Date

  	
  58

  
	
  6.3.

  	
  Conditions to
  Each Extension of Credit

  	
  58

  
	
   

  	
   

  	
   

  
	
  Section 7.

  	
  AFFIRMATIVE
  COVENANTS

  	
  59

  
	
   

  	
   

  	
   

  
	
  7.1.

  	
  Financial
  Statements

  	
  59

  
	
  7.2.

  	
  Certificates;
  Other Information

  	
  60

  
	
  7.3.

  	
  Payment of
  Obligations

  	
  61

  
	
  7.4.

  	
  Maintenance of
  Existence; Compliance

  	
  61

  
	
  7.5.

  	
  Maintenance of
  Property; Insurance

  	
  61

  
	
  7.6.

  	
  Inspection of Property;
  Books and Records; Discussions

  	
  61

  
	
  7.7.

  	
  Notices

  	
  62

  
	
  7.8.

  	
  Environmental
  Laws

  	
  62

  
	
  7.9.

  	
  Interest Rate
  Protection

  	
  63

  

 

 ii
 

 

	
  

  	
  Page

  
	
   

  	
   

  	
   

  
	
  7.10.

  	
  Additional
  Collateral, etc.

  	
  63

  
	
  7.11.

  	
  Further
  Assurances

  	
  64

  
	
   

  	
   

  	
   

  
	
  Section 8.

  	
  NEGATIVE
  COVENANTS

  	
  65

  
	
   

  	
   

  	
   

  
	
  8.1.

  	
  Financial
  Condition Covenants

  	
  65

  
	
  8.2.

  	
  Indebtedness

  	
  66

  
	
  8.3.

  	
  Liens

  	
  67

  
	
  8.4.

  	
  Fundamental
  Changes

  	
  68

  
	
  8.5.

  	
  Disposition of
  Property

  	
  69

  
	
  8.6.

  	
  Restricted
  Payments

  	
  69

  
	
  8.7.

  	
  Capital
  Expenditures

  	
  70

  
	
  8.8.

  	
  Investments

  	
  70

  
	
  8.9.

  	
  Certain Payments
  and Modifications of Certain Debt Instruments

  	
  72

  
	
  8.10.

  	
  Transactions
  with Affiliates

  	
  72

  
	
  8.11.

  	
  Sales and
  Leasebacks

  	
  72

  
	
  8.12.

  	
  Hedge Agreements

  	
  72

  
	
  8.13.

  	
  Changes in
  Fiscal Periods

  	
  73

  
	
  8.14.

  	
  Negative Pledge
  Clauses

  	
  73

  
	
  8.15.

  	
  Clauses Restricting
  Subsidiary Distributions

  	
  73

  
	
  8.16.

  	
  Lines of
  Business

  	
  73

  
	
  8.17.

  	
  Inactive
  Subsidiaries

  	
  73

  
	
   

  	
   

  	
   

  
	
  Section 9.

  	
  EVENTS OF
  DEFAULT

  	
  74

  
	
   

  	
   

  	
   

  
	
  Section 10.

  	
  THE AGENTS

  	
  77

  
	
   

  	
   

  	
   

  
	
  10.1.

  	
  Appointment and
  Authorization of Administrative Agent

  	
  77

  
	
  10.2.

  	
  Delegation of Duties

  	
  78

  
	
  10.3.

  	
  Liability of the
  Administrative Agent

  	
  78

  
	
  10.4.

  	
  Reliance by
  Administrative Agent

  	
  78

  
	
  10.5.

  	
  Notice of
  Default or Event of Default

  	
  79

  
	
  10.6.

  	
  Credit Decision

  	
  79

  
	
  10.7.

  	
  Costs and
  Expenses; Indemnification

  	
  80

  
	
  10.8.

  	
  Agent in Its
  Individual Capacity

  	
  80

  
	
  10.9.

  	
  Successor
  Administrative Agent

  	
  81

  
	
  10.10.

  	
  Lenders in
  Individual Capacity

  	
  81

  
	
  10.11.

  	
  Administrative
  Agent, L/C Arranger and Issuing Lender Generally

  	
  81

  
	
  10.12.

  	
  [intentionally
  omitted]

  	
  82

  
	
  10.13.

  	
  The Issuing
  Lender; the L/C Arranger

  	
  82

  
	
  10.14.

  	
  Agency for
  Perfection

  	
  82

  
	
  10.15.

  	
  Payments by
  Agent to the Lenders

  	
  82

  
	
  10.16.

  	
  Concerning the
  Collateral and Related Loan Documents

  	
  82

  
	
  10.17.

  	
  Several
  Obligations; No Liability

  	
  82

  
	
   

  	
   

  	
   

  
	
  Section 11.

  	
  MISCELLANEOUS

  	
  83

  

 

 iii
 

\

	
  

  	
  Page

  
	
   

  	
   

  	
   

  
	
  11.1.

  	
  Amendments and
  Waivers

  	
  83

  
	
  11.2.

  	
  Notices

  	
  85

  
	
  11.3.

  	
  No Waiver;
  Cumulative Remedies

  	
  86

  
	
  11.4.

  	
  Survival of
  Representations and Warranties

  	
  86

  
	
  11.5.

  	
  Payment of
  Expenses and Taxes

  	
  86

  
	
  11.6.

  	
  Successors and
  Assigns; Participations and Assignments

  	
  87

  
	
  11.7.

  	
  Adjustments; Set-off

  	
  91

  
	
  11.8.

  	
  Counterparts;
  Electronic Execution

  	
  92

  
	
  11.9.

  	
  Severability

  	
  92

  
	
  11.10.

  	
  Integration

  	
  92

  
	
  11.11.

  	
  GOVERNING
  LAW

  	
  92

  
	
  11.12.

  	
  Submission To
  Jurisdiction; Waivers

  	
  93

  
	
  11.13.

  	
  Acknowledgments

  	
  93

  
	
  11.14.

  	
  Releases of
  Guarantees and Liens

  	
  93

  
	
  11.15.

  	
  Confidentiality

  	
  94

  
	
  11.16.

  	
  Revival and
  Reinstatement of Obligations

  	
  95

  
	
  11.17.

  	
  WAIVERS
  OF JURY TRIAL

  	
  95

  
	
  11.18.

  	
  Bank Product
  Providers

  	
  95

  
	
  11.19

  	
  Borrower
  Acknowledgment of Prior Obligations and Continuation Thereof

  	
  95

  
	
  11.20

  	
  No Novation

  	
  96

  
	
  11.21.

  	
  Delivery of
  Addenda

  	
  96

  

 

 iv
 

 

	
  SCHEDULES:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  5.4

  	
  Consents, Authorizations, Filings and Notices

  	
   

  
	
  5.15

  	
  Subsidiaries

  	
   

  
	
  5.19(a)

  	
  UCC Filing Jurisdictions

  	
   

  
	
  5.22

  	
  Inactive Subsidiaries

  	
   

  
	
  5.24

  	
  Bank Accounts

  	
   

  
	
  5.25

  	
  Insurance

  	
   

  
	
  8.2(f)

  	
  Existing Indebtedness

  	
   

  
	
  8.3(g)

  	
  Existing Liens

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBITS:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  A

  	
  Form of Addendum

  	
   

  
	
  B

  	
  Form of Assignment and Assumption

  	
   

  
	
  C

  	
  Form of Compliance Certificate

  	
   

  
	
  D

  	
  Form of Guarantee and Collateral Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  E

  	
  [Reserved]

  	
   

  
	
  F

  	
  Form of Exemption Certificate

  	
   

  
	
  G-1

  	
  Form of Term Note

  	
   

  
	
  G-2

  	
  Form of Revolving Note

  	
   

  
	
  G-3

  	
  Form of Swingline Note

  	
   

  
	
  G-4

  	
  Form of Incremental Term Note

  	
   

  
	
  H

  	
  Form of Closing Certificate

  	
   

  
	
  I

  	
  Form of Legal Opinion of Holme Roberts & Owen
  LLP

  	
   

  
	
  J

  	
  [Reserved]

  	
   

  
	
  K

  	
  [Reserved]

  	
   

  
	
  L

  	
  [Reserved]

  	
   

  
	
  M

  	
  Form of Solvency Certificate

  	
   

  

 

 v

AMENDED AND RESTATED CREDIT AGREEMENT, dated as of
June 28, 2007, among EINSTEIN NOAH RESTAURANT GROUP, INC., a Delaware
corporation (formerly known as NEW WORLD RESTAURANT GROUP, INC.) (the “Borrower”),
the several banks and other financial institutions or entities from time to
time parties to this Agreement (the “Lenders”), and WELLS FARGO
FOOTHILL, INC., as arranger and administrative agent for the Lenders (“WFF”
and, in such capacity, together with its successors and assigns, the “Administrative
Agent”).

W  I  T  N  E
S  S  E  T  H:

WHEREAS, Borrower, the several banks and other
financial institutions or entities from time to time parties thereto, and WFF,
as a lender and the administrative agent, entered into that certain First Lien
Credit Agreement dated as of January 26, 2006 (as amended and as in effect
immediately prior to the effectiveness of this Agreement (as defined below),
the “Original Credit Agreement”);

WHEREAS, the Borrower wishes to amend and restate the
Original Credit Agreement, to, among other things, (a) refinance certain
of the Borrower’s existing Indebtedness, (b) fund certain fees and
expenses associated with the Facility, and (c) finance the ongoing working
capital, capital expenditure, and general corporate needs of Borrower and its
Subsidiaries, it being understood that no repayment of the obligations under
the Original Credit Agreement is being effected hereby, but rather this
Agreement is merely an amendment and restatement of the Original Credit
Agreement in accordance with the terms hereof.; and

WHEREAS, the Lenders are willing to amend and restate
the Original Credit Agreement upon and subject to the terms and conditions
hereinafter set forth;

NOW, THEREFORE, in consideration of the premises and
the agreements hereinafter set forth, the parties hereto hereby agree that the
Original Credit Agreement is amended and restated in its entirety as follows:

Section 1.    DEFINITIONS

1.1.          Defined Terms.  As used in this Agreement, the terms listed
in this Section 1.1 shall have the respective meanings set forth in
this Section 1.1.

“ACH Transactions”:  any cash management or related services
(including the Automated Clearing House processing of electronic fund transfers
through the direct Federal Reserve Fedline system) provided by a Bank Product Provider
for the account of Borrower or its Subsidiaries.

“Acquisition”: as to any Person, (a) the
acquisition of all of the Capital Stock of another Person, (b) the acquisition
of all or substantially all of the assets of any other Person or (c) the acquisition
of all or substantially all of the assets constituting a business line or
division of any other Person.

“Addendum”: 
an instrument, substantially in the form of Exhibit A, by
which a Lender becomes a party to this Agreement as of the Closing Date.

“Administrative Agent”:  as defined in the preamble to this Agreement.

“Affiliate”: 
as to any Person, any other Person that, directly or indirectly, is in
control of, is controlled by, or is under common control with, such
Person.  For purposes of this definition,
“control” of a Person means the power, directly or indirectly, either to (a)
vote 10% or more of the securities having ordinary voting power for the
election of directors (or persons performing similar functions) of such Person
or (b) direct or cause the direction of the management and policies of such
Person, whether by contract or otherwise.

“Aggregate Exposure”:  with respect to any Lender at any time, an
amount equal to (a) until the Initial Borrowing Date, the aggregate amount of
such Lender’s Commitments at such time and (b) thereafter, the sum of (i) the
aggregate then unpaid principal amount of such Lender’s Term Loans,
(ii) the aggregate then unpaid principal amount of such Lender’s
Incremental Term Loans, and (iii) the amount of such Lender’s Revolving
Commitment then in effect or, if the Revolving Commitments have been
terminated, the amount of such Lender’s Revolving Extensions of Credit then
outstanding.

“Aggregate Exposure Percentage”:  with respect to any Lender at any time, the
ratio (expressed as a percentage) of such Lender’s Aggregate Exposure at such
time to the Aggregate Exposure of all Lenders at such time.

“Agreement”: 
this Amended and Restated Credit Agreement.

“Applicable Margin”:  as of any date of determination (with respect
to outstanding Revolving Loans or portion of the Term Loan or Incremental Term
Loan on such date that are Base Rate Loans or Eurodollar Loans, as the case may
be), the margins set forth in the following table that correspond to the most
recent Consolidated Leverage Ratio calculation delivered to Administrative
Agent pursuant to Section 7.2 of this Agreement; provided, however,
that for the period from the Closing Date through the date Administrative Agent
receives the Consolidated Leverage Ratio calculation in respect of the testing
period ending June 30, 2007, the Applicable Margins shall be at “Level II”:

	
  Level

  	
   

  	
  Consolidated Leverage Ratio

  	
   

  	
  Applicable Margin for

  Eurodollar Loans

  	
   

  	
  Applicable Margin for

  Base Rate Loans

  	
   

  
	
  I

  	
   

  	
  >
  2.25:1.0

  	
   

  	
  2.25

  	
  %

  	
  1.25

  	
  %

  
	
  II

  	
   

  	
  <
  2.25:1.0 but > 1.50:1.0

  	
   

  	
  2.00

  	
  %

  	
  1.00

  	
  %

  
	
  III

  	
   

  	
  < 1.50:1.0

  	
   

  	
  1.75

  	
  %

  	
  0.75

  	
  %

  

 

“Application”: 
an application, in such form as the L/C Arranger or the Issuing Lender
may specify from time to time, requesting the L/C Arranger to cause a Letter of
Credit (or Underlying Letter of Credit) to be issued (which application shall
be subject to Section 3.14).

“Application Event” means the occurrence of (a)
a failure by Borrower to repay all of the Obligations on the Maturity Date, to
the extent that the Obligations are, by their express

 2
 

terms, due and payable on the Maturity Date, or (b) an
Event of Default that is continuing and the election by the Required Lenders to
declare all or any portion of the Obligations to be due and payable, to terminate
the Revolver Commitment, or to exercise remedies against the Collateral, in
each case in accordance with the terms hereof or under the Loan Documents.

“Approved Fund”:  as defined in Section 11.6(c).

“Asset Sale”: 
any Disposition of Property or series of related Dispositions of
Property (excluding any such Disposition permitted by clause (a), (b), (c),
(d), (e) and (h) of Section 8.5) that yields gross proceeds to any Group
Member (valued at the initial principal amount thereof in the case of non-cash
proceeds consisting of notes or other debt securities and valued at fair market
value in the case of other non-cash proceeds) in excess of $500,000.

“Assignee”: 
as defined in Section 11.6(b).

“Assignment and Assumption”:  an Assignment and Assumption, substantially
in the form of Exhibit B.

“Authorized Person”: the president, chief
executive officer or chief financial officer and any other officer or employee
designated as such by the president, chief executive officer or chief financial
officer of the Borrower.

“Available Revolving Commitment”:  as to any Revolving Lender at any time, an
amount equal to the excess, if any, of (a) such Lender’s Revolving Commitment
then in effect over (b) such Lender’s Revolving Extensions of Credit
then outstanding, provided that, in calculating any Lender’s (other than
the Swingline Lender) Revolving Extensions of Credit for purposes of
determining such Lender’s Available Revolving Commitment pursuant to Section
3.5, the aggregate principal amount of Swingline Loans then outstanding
shall be zero.

“Bank Product”: any cash management services
and hedging services extended to Borrower or its Subsidiaries by a Bank Product
Provider (other than pursuant to this Agreement) including:  (a) ACH Transactions, (b) cash management,
including controlled disbursement, accounts or services, or (c) transactions
under Hedge Agreements.

“Bank Product Agreements”: those agreements
entered into from time to time by Borrower or its Subsidiaries with a Bank
Product Provider in connection with the obtaining of any of the Bank Products.

“Bank Product Obligations”: all obligations,
liabilities, contingent reimbursement obligations, fees, and expenses owing by
Borrower or its Subsidiaries to any Bank Product Provider pursuant to or
evidenced by the Bank Product Agreements and irrespective of whether for the
payment of money, whether direct or indirect, absolute or contingent, due or to
become due, now existing or hereafter arising, and including all such amounts
that Borrower or its Subsidiaries are obligated to reimburse to Administrative
Agent or any member of the Lender Group as a result of Administrative Agent or
such member of the Lender Group purchasing participations from, or executing
indemnities or reimbursement obligations to, a Bank Product Provider with
respect to the Bank Products provided by such Bank Product Provider to Borrower
or its Subsidiaries pursuant to either (i) the terms of any such Bank Product
Agreement or (ii) the

 3
 

Borrower’s request; provided, that (x)
Obligations of the Borrower or any Subsidiary under any Bank Product Agreement
shall be secured and guaranteed pursuant to the Security Documents only to the
extent that, and for so long as, the other Obligations secured or guaranteed
thereby (other than Obligations under such Bank Product Agreement) are so
secured and guaranteed, and (y) any release of Collateral or Guarantors
effected in the manner permitted hereby shall not require the consent of any
Bank Product Provider.  The execution and
delivery of any Bank Product Agreement shall not create in favor of any Bank
Product Provider any rights hereunder or any of the Loan Documents in
connection with the management or release of any Collateral or of the
Obligations of any Guarantor under the Loan Documents.

“Bank Product Provider”: Wells Fargo Bank or
any of its Affiliates, or any Lender or any of their Affiliates.

“Bankruptcy Code”:  Title 11 of the United States Code, as in
effect from time to time.

“Base Rate”: 
for any day, a rate per annum (rounded upwards, if necessary, to the
next 1/100 of 1%) equal to the greater of (a) the Prime Rate in effect on such
day and (b) the Federal Funds Effective Rate in effect on such day plus
0.50%.  For purposes hereof:  “Prime Rate” shall mean the rate of
interest per annum publicly announced from time to time by the Reference Bank
as its prime rate in effect at its principal office in San Francisco,
California (the Prime Rate not being intended to be the lowest rate of interest
charged by the Reference Bank in connection with extensions of credit to
debtors).  Any change in the Base Rate
due to a change in the Prime Rate or the Federal Funds Effective Rate shall be
effective as of the opening of business on the effective day of such change in
the Prime Rate or the Federal Funds Effective Rate, respectively.

“Base Rate Loans”:  Loans the rate of interest applicable to
which is based upon the Base Rate.

“Board”: 
the Board of Governors of the Federal Reserve System of the United
States (or any successor).

“Borrower”: 
as defined in the preamble to this Agreement.

“Borrowing Date”:  any Business Day specified by the Borrower as
a date on which the Borrower requests the relevant Lenders to make Loans
hereunder.

“Business”: 
as defined in Section 5.17(b).

“Business Day”: 
a day other than a Saturday, Sunday or other day on which commercial
banks in New York City are authorized or required by law to close, provided,
that with respect to notices and determinations in connection with, and
payments of principal and interest on, Eurodollar Loans, such day is also a day
for trading by and between banks in Dollar deposits in the interbank eurodollar
market.

“Capital Expenditures”:  for any period, with respect to any Person,
without duplication, (i) the aggregate of all expenditures by such Person and
its Subsidiaries for the

 4
 

acquisition of fixed or capital assets or additions to
equipment (including replacements, capitalized repairs and improvements) during
such period, in each case, that should be capitalized under GAAP on a
consolidated balance sheet of such Person and its Subsidiaries, and (ii)
Capital Lease Obligations incurred by such Person and its Subsidiaries during
such period, provided that (a) the cost of any Investment permitted
under Sections 8.8(k) or 8.8(l) shall not constitute a Capital
Expenditure by the Borrower or any of its Subsidiaries and (b) Capital
Expenditures funded with Reinvestment Deferred Amounts shall not be deemed to
be Capital Expenditures.

“Capital Lease Obligations”:  as to any Person, 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, for the
purposes of this Agreement, the amount of such obligations at any time shall be
the capitalized amount thereof at such time determined in accordance with GAAP.

“Capital Stock”:  any and all shares, interests, participations
or other equivalents (however designated) of capital stock of a corporation,
any and all equivalent ownership interests in a Person (other than a
corporation) and any and all warrants, rights or options to purchase any of the
foregoing.

“Cash Collateralized Surety Bonds”:
Indebtedness of the Borrower and its Subsidiaries in respect of surety bonds
permitted under Section 8.2(k)(A) to the extent such Indebtedness is
cash collateralized with cash or Cash Equivalents subject to a Lien in favor of
the holders of such Indebtedness.

“Cash Equivalents”:  (a) marketable direct obligations issued by,
or unconditionally guaranteed by, the United States Government or issued by any
agency thereof and backed by the full faith and credit of the United States, in
each case maturing within one calendar year from the date of acquisition; (b)
certificates of deposit, time deposits, eurodollar time deposits or overnight
bank deposits having maturities of six months or less from the date of
acquisition issued by any commercial bank organized under the laws of the
United States or any state thereof having combined capital and surplus of not
less than $500,000,000; (c) commercial paper of an issuer rated at least A-1 by
Standard & Poor’s Ratings Services (“S&P”) or P-1 by Moody’s
Investors Service, Inc. (“Moody’s”), or carrying an equivalent rating by
a nationally recognized rating agency, if both of the two named rating agencies
cease publishing ratings of commercial paper issuers generally, and maturing
within six months from the date of acquisition; (d) repurchase obligations of
any Lender or of any commercial bank satisfying the requirements of clause (b)
of this definition, having a term of not more than 30 days, with respect to
securities issued or fully guaranteed or insured by the United States
government; (e) securities with maturities of one year or less from the date of
acquisition issued or fully guaranteed by any state, commonwealth or territory
of the United States, by any political subdivision or taxing authority of any
such state, commonwealth or territory or by any foreign government, the
securities of which state, commonwealth, territory, political subdivision,
taxing authority or foreign government (as the case may be) are rated at least
A by S&P or A by Moody’s; (f) securities with maturities of six months or
less from the date of acquisition backed by standby letters of credit issued by
any commercial bank satisfying the requirements of clause (b) of this
definition;

 5
 

or (g) shares of money market mutual or similar funds
which invest exclusively in assets satisfying the requirements of clauses (a)
through (f) of this definition or money market funds that (i) comply with the
criteria set forth in Securities and Exchange Commission Rule 2a-7 under the
Investment Company Act of 1940, as amended, (ii) are rated AAA by S&P and
Aaa by Moody’s and (iii) have portfolio assets of at least $5,000,000,000.

“Closing Date”: 
the date on which the conditions precedent set forth in Section 6.1
shall have been satisfied.

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

“Coke Beverage Marketing Agreement”:  the Beverage Marketing Agreement, dated as of
December 30, 2004, among the Borrower, The Coca-Cola Company and Odwalla Inc.,
as amended from time to time.

“Collateral”: 
all property of the Loan Parties, now owned or hereafter acquired, upon
which a Lien is purported to be created by any Security Document.

“Commitment”: 
as to any Lender, the sum of the Term Commitment, the Incremental Term
Loan Commitment, and the Revolving Commitment of such Lender.

“Commitment Fee Rate”:  0.50% per annum.

“Commonly Controlled Entity”:  an entity, whether or not incorporated, that
is under common control with the Borrower within the meaning of Section 4001 of
ERISA or is part of a group that includes the Borrower and that is treated as a
single employer under Section 414(b) or (c) of the Code (and, solely for
purposes of Section 412 of the Code, under Section 414(m), (n), and (o) of the
Code).

“Compliance Certificate”:  a certificate duly executed by a Responsible
Officer substantially in the form of Exhibit C.

“Conduit Lender”:  any special purpose entity organized and
administered by any Lender for the purpose of making Loans otherwise required
to be made by such Lender and designated by such Lender in a written
instrument, subject to the consent of the Administrative Agent and the Borrower
(which consent shall not be unreasonably withheld); provided, that the
designation by any Lender of a Conduit Lender shall not relieve the designating
Lender of any of its obligations to fund a Loan under this Agreement if, for
any reason, its Conduit Lender fails to fund any such Loan, and the designating
Lender (and not the Conduit Lender) shall have the sole right and responsibility
to deliver all consents and waivers required or requested under this Agreement
with respect to its Conduit Lender, and provided, further, that
no Conduit Lender shall (a) be entitled to receive any greater amount pursuant
to Section 4.9, 4.10, 4.11 or 11.5 than the
designating Lender would have been entitled to receive in respect of the
extensions of credit made by such Conduit Lender or (b) be deemed to have any
Commitment.

“Consolidated Current Assets”:  at any date, all amounts (other than cash and
Cash Equivalents but including any “restricted cash” under GAAP) that would, in
conformity

 6
 

with GAAP, be set forth opposite the caption “total
current assets” (or any like caption) on a consolidated balance sheet of the
Borrower and its Subsidiaries at such date.

“Consolidated Current Liabilities”:  at any date, all amounts that would, in
conformity with GAAP, be set forth opposite the caption “total current
liabilities” (or any like caption) on a consolidated balance sheet of the
Borrower and its Subsidiaries at such date, but excluding (a) the current
portion of any Long-Term Debt of the Borrower and its Subsidiaries and (b)
without duplication of clause (a) above, all Indebtedness consisting of
Revolving Loans or Swingline Loans to the extent otherwise included therein.

“Consolidated EBITDA”:  for any period, Consolidated Net Income for
such period plus, without duplication and to the extent deducted in
determining Consolidated Net Income for such period, the sum of (a) income tax
expense, (b) interest expense, amortization or writeoff of debt discount and
debt issuance costs and commissions, discounts and other fees and charges
associated with Indebtedness (including the Loans, the Second Lien Term Loans
and the Subordinated Loans), including without limitation all unamortized debt
issuance costs and prepayment fees relating to the Second Lien Term Loans or
the Subordinated Loans, (c) depreciation and amortization expense, (d)
amortization of intangibles (including, but not limited to, goodwill) and
organization costs, (e) any extraordinary charges or extraordinary losses
determined in accordance with GAAP, (f) non-cash compensation expenses arising
from the issuance of stock, options to purchase stock and stock appreciation
rights to the employees of the Borrower, (g) reasonable legal, accounting,
financing, consulting, advisory and out-of-pocket fees and expenses incurred in
connection with the initial consummation of permitted incurrences of
Indebtedness by the Borrower or any of its Subsidiaries after the date hereof
under Section 8.2(a), 8.2(c), 8.2(g), 8.2(l) or 8.2(m),
issuances of Capital Stock of the Borrower, permitted Dispositions under Sections
8.5(f), 8.5(g) or 8.5(i) and permitted Investments under Sections
8.8(k) or 8.8(l), (h) fees and expenses related to store closures
incurred during the first three fiscal years ending after the Original
Borrowing Date and not exceeding $1,000,000 per fiscal year, (i) non-cash
charges related to changes in the exposure of the Borrower and its Subsidiaries
under Hedge Agreements, and (j) any other non-cash charges, non-cash
expenses or non-cash losses of the Borrower or any of its Subsidiaries for such
period (excluding any such charge, expense or loss incurred in the ordinary
course of business that constitutes an accrual of or a reserve for cash charges
for any future period), provided, however, that cash payments
made in such period or in any future period in respect of such non-cash
charges, expenses or losses (excluding any such charge, expense or loss
incurred in the ordinary course of business that constitutes an accrual of or a
reserve for cash charges for any future period) shall be subtracted from
Consolidated Net Income in calculating Consolidated EBITDA in the period when
such payments are made, and minus, to the extent included in determining
such Consolidated Net Income for such period, the sum of (a) interest income,
(b) any extraordinary income or gains determined in accordance with GAAP and
(c) any other non-cash income (excluding any items that represent the reversal
of any accrual of, or cash reserve for, anticipated cash charges in any prior
period that are described in the parenthetical to clause (l) above), all as
determined on a consolidated basis.  For
the purposes of calculating Consolidated EBITDA for any period of four
consecutive fiscal quarters (each, a “Reference Period”) pursuant to any
determination of the Consolidated Leverage Ratio, (i) if at any time during
such Reference Period the Borrower or any of its Subsidiaries shall have made
any Material Disposition, the Consolidated EBITDA for such Reference Period
shall be reduced by an amount equal to the Consolidated EBITDA (if

 7
 

positive) attributable to the property that is the
subject of such Material Disposition for such Reference Period or increased by
an amount equal to the Consolidated EBITDA (if negative) attributable thereto
for such Reference Period and (ii) if during such Reference Period the Borrower
or any of its Subsidiaries shall have made a Material Acquisition, Consolidated
EBITDA for such Reference Period shall be calculated after giving pro  forma
effect thereto as if such Material Acquisition occurred on the first day of
such Reference Period.  As used in this
definition, “Material Acquisition” means any Acquisition that involves
the payment of consideration by the Borrower and its Subsidiaries in excess of
$2,500,000; and “Material Disposition” means any Disposition of property or
series of related Dispositions of property that yields gross proceeds to the
Borrower or any of its Subsidiaries in excess of $2,500,000.

“Consolidated Debt”: on any date of
determination, Consolidated Total Debt as of such date minus the
aggregate amount of unsecured Indebtedness on such date.

“Consolidated Fixed Charge Coverage Ratio”:  for any period, the ratio of (a) Consolidated
EBITDA for such period plus Consolidated Lease Expense for such period less
the amount of Capital Expenditures made during such period (net of (y) any
proceeds reinvested in accordance with the applicable provisions of this
Agreement, and (z) any proceeds of related financings (other than
Revolving Loans) with respect to such Capital Expenditures), to (b)
Consolidated Fixed Charges for such period.

“Consolidated Fixed Charges”:  for any period, the sum (without duplication)
of (a) Consolidated Interest Expense for such period, (b) principal payments in
respect of Consolidated Total Debt that are required to be paid during such
period (other than prepayments of the Obligations pursuant to Section 4.2(d)
that are required to be paid during such period), (c) all federal, state,
and local income taxes paid or payable in cash during such period, and
(d) Consolidated Lease Expense for such period.

“Consolidated Interest Expense”:  for any period, total cash interest expense
(including that attributable to Capital Lease Obligations) of the Borrower and
its Subsidiaries for such period with respect to all outstanding Indebtedness
(other than the Excluded Items) of the Borrower and its Subsidiaries (including
all commissions, discounts and other fees and charges owed with respect to
letters of credit and bankers’ acceptance financing and net costs under Hedge
Agreements in respect of interest rates to the extent such net costs are
allocable to such period in accordance with GAAP).

“Consolidated Lease Expense”:  for any period, the excess of (a) the
aggregate amount of fixed and contingent rentals payable by the Borrower and
its Subsidiaries for such period with respect to leases of real and personal
property, determined on a consolidated basis in accordance with GAAP, provided
that payments in respect of Capital Lease Obligations shall not be included in
this clause (a), over (b) the aggregate amount of rentals paid to the Borrower
and its Subsidiaries during such period with respect to leases of real and
personal property by the Borrower and its Subsidiaries, provided that
payments in respect of Capital Lease Obligations shall not be included in this
clause (b); provided  further, that Consolidated Lease Expense
shall not include any fixed or contingent rentals payable by Persons (other
than the Borrower and its Subsidiaries) with respect to leases of real or
personal property solely because such rentals are subject to a Guarantee
Obligation issued by the Borrower or any of its Subsidiaries unless such

 8
 

Persons shall be in default of their obligations under
any such leases or such rentals shall actually be paid by the Borrower and its
Subsidiaries.

“Consolidated Leverage Ratio”: at any time, the
ratio of (a) Consolidated Total Debt at such time to (b) Consolidated EBITDA
for the most recent period of four consecutive fiscal quarters for which
financial statements have been delivered.

“Consolidated Net Income”:  for any period, the consolidated net income
(or loss) of the Borrower and its Subsidiaries, determined on a consolidated
basis in accordance with GAAP; provided that there shall be excluded (a)
the income (or deficit) of any Person (other than a Subsidiary of the Borrower)
in which the Borrower or any of its Subsidiaries has an ownership interest,
except to the extent that any such income is actually received by the Borrower
or such Subsidiary in the form of dividends or similar distributions and (b)
the undistributed earnings of any Subsidiary of the Borrower (other than a
Subsidiary Guarantor) to the extent that the declaration or payment of
dividends or similar distributions by such Subsidiary is not at the time
permitted by the terms of any Contractual Obligation (other than under any Loan
Document) or Requirement of Law applicable to such Subsidiary, provided,
that this clause (b) shall not apply to customary surplus requirements under
applicable law related to the payment of dividends.

“Consolidated Total Debt”:  at any date, the aggregate principal amount
of all Indebtedness of the Borrower and its Subsidiaries as set forth on a
consolidated balance sheet of the Borrower at such date in accordance with
GAAP, determined on a consolidated basis in accordance with GAAP, excluding (i)
the Excluded Items and (ii) items that appear solely in the footnotes thereto.

“Consolidated Total Debt Limiter”: at any time,
an amount equal to 2.75 times the Consolidated EBITDA for the most recent
period of four consecutive fiscal quarters for which financial statements have
been delivered.

“Consolidated Working Capital”:  at any date, the excess of Consolidated
Current Assets on such date over Consolidated Current Liabilities on
such date.

“Continuing Directors”:  the directors of the Borrower on the Closing
Date, after giving effect to the transactions contemplated hereby, and each
other director, if such other director’s nomination for election to the board
of directors of the Borrower is recommended by at least 51% of the then
Continuing Directors or such other director receives the vote of the Permitted
Investors in his or her election by the shareholders of the Borrower.

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

“Control Agreement”: a control agreement in
favor of the Administrative Agent having terms and conditions reasonably
satisfactory to the Administrative Agent and executed and delivered by the
financial institution with whom the relevant account is maintained and the
applicable Loan Parties.

 9
 

“Control Investment Affiliate”:  as to any Person, any other Person that (a)
directly or indirectly, is in control of, is controlled by, or is under common
control with, such Person and (b) is organized by such Person primarily for the
purpose of making equity or debt investments in one or more companies.  For purposes of this definition, “control” of
a Person means the power, directly or indirectly, to direct or cause the direction
of the management and policies of such Person whether by contract or otherwise.

“Default”: 
any of the events specified in Section 9, whether or not any
requirement for the giving of notice, the lapse of time, or both, has been
satisfied.

“Defaulting Lender”:  as defined in Section 4.13.

“Disposition”: 
with respect to any Property, any sale, lease, license, sale and
leaseback, assignment, conveyance, transfer or other disposition thereof.  The terms “Dispose” and “Disposed
of” shall have correlative meanings.

“Dollars” and “$”:  dollars in lawful currency of the United
States.

“Domestic Subsidiary”:  any Subsidiary of the Borrower organized
under the laws of any jurisdiction within the United States.

“ECF Percentage”:  50%.

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

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

“Eurocurrency Reserve Requirements”:  for any day as applied to a Eurodollar Loan,
the aggregate (without duplication) of the maximum rates (expressed as a
decimal fraction) of reserve requirements in effect on such day (including
basic, supplemental, marginal and emergency reserves under any regulations of
the Board or other Governmental Authority having jurisdiction with respect
thereto) dealing with reserve requirements prescribed for eurocurrency funding
(currently referred to as “Eurocurrency Liabilities” in Regulation D of the
Board) maintained by a member bank of the Federal Reserve System.

“Eurodollar Base Rate”:  the rate per annum, determined by
Administrative Agent in accordance with its customary procedures, and utilizing
such electronic or other quotation sources as it considers appropriate (it
being understood and agreed that such rate shall be determined by
Administrative Agent based on a publicly available objective quotation source
unless no such publicly available objective quotation source is available), to be
the rate at which Dollar deposits (for delivery on the first day of the
requested Interest Period) are offered to major

 10
 

banks in the London interbank market 2 Business Days
prior to the commencement of the requested Interest Period, for a term and in an
amount comparable to the Interest Period and the amount of the Eurodollar Loan
requested (whether as an initial Eurodollar Loan or as a continuation of a
Eurodollar Loan or as a conversion of a Base Rate Loan to a Eurodollar Loan) by
Borrower in accordance with this Agreement, which determination (so long as
such determination is based on a publicly available objective quotation source)
shall be conclusive in the absence of manifest error. As of the Closing Date,
notice is hereby given that the reporting entity relied upon for the
determination of the Eurodollar Base Rate for the purposes of this Agreement is
Bloomberg L.P..

“Eurodollar Loans”:  Loans the rate of interest applicable to
which is based upon the Eurodollar Rate.

“Eurodollar Rate”:  with respect to each day during each Interest
Period pertaining to a Eurodollar Loan, a rate per annum determined for such
day in accordance with the following formula (rounded upward to the nearest
1/100th of 1%):

	
  

  	
  Eurodollar Base Rate

  	
   

  
	
  1.00 - Eurocurrency Reserve Requirements

  

 

“Eurodollar Tranche”:  the collective reference to Eurodollar Loans
under a particular Facility the then current Interest Periods with respect to
all of which begin on the same date and end on the same later date (whether or
not such Loans shall originally have been made on the same day).

“Event of Default”:  any of the events specified in Section 9,
provided that any requirement for the giving of notice, the lapse of
time, or both, has been satisfied.

“Excess Cash Flow”:  for any fiscal year of the Borrower, the
excess, if any, of (a) the sum, without duplication, of (i) Consolidated Net
Income for such fiscal year (other than Consolidated Net Income arising out of
any Asset Sale during such fiscal year), (ii) the amount of all non-cash
charges (including depreciation and amortization) deducted in arriving at such
Consolidated Net Income, (iii) decreases in Consolidated Working Capital for
such fiscal year, (iv) the aggregate net amount of non-cash loss on the
Disposition of Property by the Borrower and its Subsidiaries during such fiscal
year (other than sales of inventory in the ordinary course of business), to the
extent deducted in arriving at such Consolidated Net Income, and (v) cash
payments in respect of the net decrease (if any) during such period of
outstanding Investments under Sections 8.8 (d), (f) and (g),
over (b) the sum, without duplication, of (i) the amount of all non-cash
gains or credits included in arriving at such Consolidated Net Income, (ii) the
aggregate amount of Capital Expenditures of the Borrower and its Subsidiaries
during such fiscal year (excluding the principal amount of Indebtedness
incurred to finance such expenditures (but including repayments of any such
Indebtedness incurring during such period or any prior period)), (iii) the
aggregate amount of all prepayments of Revolving Loans and Swingline Loans
during such fiscal year to the extent accompanying permanent optional
reductions of the Revolving Commitments and all optional prepayments of the
Term Loans and Incremental Term Loans during such fiscal year together with any
prepayment premium paid in connection therewith, (iv) the aggregate amount of
all regularly scheduled principal payments of Long-Term

 11
 

Debt (including the Term Loans and the Incremental
Term Loans) of the Borrower and its Subsidiaries made during such fiscal year
(other than in respect of any revolving credit facility to the extent there is
not an equivalent permanent reduction in commitments thereunder), (v) increases
in Consolidated Working Capital for such fiscal year, (vi) the aggregate net
amount of non-cash gain on the Disposition of Property by the Borrower and its
Subsidiaries during such fiscal year (other than sales of inventory in the
ordinary course of business), to the extent included in arriving at such
Consolidated Net Income, (vii) cash payments in respect of the net increase (if
any) during such period of outstanding Investments under Sections 8.8(d),
(f) and (g) and (viii) cash contributions required by law to be
made to, and made to, any Plan during such period.

“Excess Cash Flow Application Date”:  as defined in Section 4.2.

“Excluded Indebtedness”:  all Indebtedness permitted by Section 8.2.

“Excluded Items”: collectively, (i) the Series
Z Preferred, (ii) the NJEDA Debt, (iii) the Indebtedness under the Coke
Beverage Marketing Agreement and (iv) Cash Collateralized Surety Bonds, provided,
that (x) the NJEDA Debt shall constitute an Excluded Item only to the extent
cash reserves are maintained exclusively for the purpose of repaying the NJEDA
Debt at its maturity and (y) the Coke Beverage Marketing Agreement shall only
constitute an Excluded Item to the extent a default shall not have occurred and
be continuing thereunder which permits The Coca-Cola Company to terminate such
agreement (after giving effect to any applicable cure periods) and to cause the
“Advance” or similar advances thereunder to become due and payable unless the
parties to the Coke Beverage Marketing Agreement are negotiating in good faith
to resolve such default in accordance with the dispute resolution provisions in
such agreement (in which case the Coke Beverage Marketing Agreement shall
remain an Excluded Item until the parties are no longer engaged in such
negotiations in accordance with such provisions).

“Facility”: 
each of (a) the Term Commitments and the Incremental Term Commitments,
and the Term Loans and the Incremental Term Loans made thereunder respectively
and (b) the Revolving Commitments and the extensions of credit made thereunder
(the “Revolving Facility”).

“Federal Funds Effective Rate”:  for any day, the weighted average of the
rates on overnight federal funds transactions with members of the Federal
Reserve System arranged by federal funds brokers, as published on the next
succeeding Business Day by the Federal Reserve Bank of New York, or, if such
rate is not so published for any day that is a Business Day, the average of the
quotations for the day of such transactions received by the Reference Bank from
three federal funds brokers of recognized standing selected by it.

“Fee Letter”: 
means that certain fee letter, dated as of the date hereof, between
Borrower and Agent.

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

 12
 

“Funding Office”:  the office of the Administrative Agent
specified in Section 11.2 or such other office as may be specified from
time to time by the Administrative Agent as its funding office by written
notice to the Borrower and the Lenders.

“GAAP”: 
generally accepted accounting principles in the United States as in
effect from time to time.

“Governmental Authority”:  any nation or government, any state or other
political subdivision thereof, any agency, authority, instrumentality,
regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative functions of or
pertaining to government, any securities exchange and any self-regulatory
organization (including the National Association of Insurance Commissioners).

“Group Members”:  the collective reference to the Borrower and
its respective Subsidiaries.

“Guarantee and Collateral Agreement”:  the Amended and Restated Guarantee and
Collateral Agreement to be executed and delivered by the Borrower and each
Subsidiary Guarantor, substantially in the form of Exhibit D.

“Guarantee Obligation”:  as to any Person (the “guaranteeing person”),
any obligation of (a) the guaranteeing person or (b) another Person (including
any bank under any letter of credit) to induce the creation of which the
guaranteeing person has issued a reimbursement, counterindemnity or similar
obligation, in either case guaranteeing or in effect guaranteeing any
Indebtedness, leases, dividends or other obligations (the “primary
obligations”) of any other third Person (the “primary obligor”) in
any manner, whether directly or indirectly, including any obligation of the
guaranteeing person, whether or not contingent, (i) to purchase any such
primary obligation or any property constituting direct or indirect security
therefor, (ii) to advance or supply funds (1) for the purchase or payment of
any such primary obligation or (2) to maintain working capital or equity
capital of the primary obligor or otherwise to maintain the net worth or solvency
of the primary obligor, (iii) to purchase property, securities or services
primarily for the purpose of assuring the owner of any such primary obligation
of the ability of the primary obligor to make payment of such primary
obligation or (iv) otherwise to assure or hold harmless the owner of any such
primary obligation against loss in respect thereof; provided, however,
that the term Guarantee Obligation shall not include endorsements of
instruments for deposit or collection in the ordinary course of business.  The amount of any Guarantee Obligation of any
guaranteeing person shall be deemed to be the lower of (a) an amount equal to
the stated or determinable amount of the primary obligation in respect of which
such Guarantee Obligation is made and (b) the maximum amount for which such
guaranteeing person may be liable pursuant to the terms of the instrument
embodying such Guarantee Obligation, unless such primary obligation and the
maximum amount for which such guaranteeing person may be liable are not stated
or determinable, in which case the amount of such Guarantee Obligation shall be
such guaranteeing person’s maximum reasonably anticipated liability in respect
thereof as determined by the Borrower in good faith.

“Hedge Agreements”:  any agreement with respect to any cap, swap,
forward, future or derivative transaction or option or similar agreement
involving, or settled by reference

 13
 

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 payment only on account of services
provided by current or former directors, officers, employees or consultant of
the Borrower or the Subsidiary Guarantors shall be a swap agreement.

“Inactive Subsidiaries”: the Subsidiaries
listed on Part A of Schedule 5.22.

“Incremental Borrowing Date”: the date,
specified by the Borrower in Section 2.2(b), which must be on or
before June 30, 2009, provided that all of the conditions precedent set forth
in Sections 6.3 and 6.4 are first (or simultaneously) satisfied
or waived.

“Incremental Term Loan”: as defined in Section 2.1(b).

“Incremental Term Loan Commitment”: as to any
Lender, the obligation of such Lender, if any, to make an Incremental Term Loan
to the Borrower hereunder in a principal amount not to exceed the amount set
forth under the heading “Incremental Term Commitment” under such Lender’s name
on such Lender’s Addendum or in the Assignment and Assumption pursuant to which
such Lender became a party hereto.  The
original amount of the Incremental Term Loan Commitment is $57,000,000.

“Incremental Term Loan Commitment Period”: the
period from and including the Closing Date to and including June 30, 2009.

“Incremental Term Loan Lender”: each Lender
that has an Incremental Term Loan Commitment or that holds an Incremental Term
Loan.

“Indebtedness”: 
of any Person at any date, without duplication, (a) all indebtedness of
such Person for borrowed money, (b) all obligations of such Person for the
deferred purchase price of property or services (other than trade payables
incurred in the ordinary course of such Person’s business that are not
outstanding after the later of (i) 60 days after the invoice date or (ii) 30
days after payment is due), (c) all obligations of such Person evidenced by
notes, bonds, debentures or other similar instruments, (d) all indebtedness
created or arising under any conditional sale or other title retention
agreement with respect to property acquired by such Person (even though the
rights and remedies of the seller or lender under such agreement in the event
of default are limited to repossession or sale of such property), (e) all
Capital Lease Obligations of such Person, (f) all obligations of such Person,
contingent or otherwise, as an account party or applicant under or in respect
of acceptances, letters of credit, surety bonds or similar arrangements, (g)
for the purpose of Section 8.2 and the definition of Replacement Equity
only, the liquidation value of all mandatorily redeemable preferred Capital
Stock of such Person, (h) all Guarantee Obligations of such Person in respect
of obligations of the kind referred to in clauses (a) through (g) above, (i)
all obligations of the kind referred to in clauses (a) through (h) above
secured by (or for which the holder of such obligation has an existing right,
contingent or otherwise, to be secured by) any Lien on property (including
accounts and contract rights) owned by such Person, whether or not such Person
has assumed or become liable for the payment of such obligation, (j) for the
purposes of Section 8.2 and Section 9(e) only, all obligations of
such

 14
 

Person in respect of Hedge Agreements and (k) other
than with respect to Section 9(e), all obligations under the Coke
Beverage Marketing Agreement or other similar agreements to the extent such
obligations constitute “take-or-pay” arrangements, provided, that for
the purposes of this definition, the “principal amount” of the obligations of
such Person in respect of any Hedge Agreement at any time shall be the maximum
aggregate amount (giving effect to any netting agreements) that such Person
would be required to pay if such Hedge Agreement were terminated at such
time.  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 expressly provide that such Person is not liable therefor.

“Initial Borrowing Date”:  the first date occurring on or after
June 28, 2007 on which all the conditions precedent set forth in Sections
6.1 and 6.3 shall have been satisfied, provided, that such
date shall occur no later than 40 days after the Closing Date.

“Insolvency”: 
with respect to any Multiemployer Plan, the condition that such Plan is
insolvent within the meaning of Section 4245 of ERISA.

“Insolvency Proceeding”:  any proceeding commenced by or against any
Person under any provision of the Bankruptcy Code or under any other state or
federal bankruptcy or insolvency law, assignments for the benefit of creditors,
formal or informal moratoria, compositions, extensions generally with
creditors, or proceedings seeking reorganization, arrangement, or other similar
relief.

“Insolvent”: 
pertaining to a condition of Insolvency.

“Intellectual Property”:  the collective reference to all rights,
priorities and privileges relating to intellectual property, whether arising
under United States, multinational or foreign laws or otherwise, including
copyrights, copyright licenses, patents, patent licenses, trademarks, trademark
licenses, technology, know-how and processes, and all rights to sue at law or
in equity for any infringement or other impairment thereof, including the right
to receive all proceeds and damages therefrom.

“Interest Payment Date”:  (a) as to any Base Rate Loan (other than any
Swingline Loans), the last day of each March, June, September and December to
occur while such Loan is outstanding and the final maturity date of such Loan,
(b) as to any Eurodollar Loan having an Interest Period of three months or
less, the last day of such Interest Period, (c) as to any Eurodollar Loan
having an Interest Period longer than three months, each day that is three
months, or a whole multiple thereof, after the first day of such Interest
Period and the last day of such Interest Period, (d) as to any Loan (other than
any Revolving Loan that is a Base Rate Loan and any Swingline Loan), the date
of any repayment or prepayment made in respect thereof and (e) with respect to
any Swingline Loan, the date of any repayment thereof.

“Interest Period”:  as to any Eurodollar Loan, (a) initially, the
period commencing on the borrowing or conversion date, as the case may be, with
respect to such Eurodollar Loan and ending one, two, three or six months
thereafter, as selected by the Borrower in its notice of

 15
 

borrowing or notice of conversion, as the case may be,
given with respect thereto; and (b) thereafter, each period commencing on the
last day of the next preceding Interest Period applicable to such Eurodollar
Loan and ending one, two, three or six months thereafter, as selected by the
Borrower by irrevocable notice to the Administrative Agent no later than 11:00
A.M., New York City time, on the date that is three Business Days prior to the
last day of the then current Interest Period with respect thereto; provided
that, all of the foregoing provisions relating to Interest Periods are subject
to the following:

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

(ii)           the Borrower may not
select an Interest Period under a particular Facility that would extend beyond
the Revolving Termination Date or beyond the date final payment is due on the
Term Loans or the Incremental Term Loans, as the case may be; and

(iii)          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 a calendar month.

“Investments”: 
as defined in Section 8.8.

“Issuing Lender”:  any financial institution designated by the
L/C Arranger as an Issuing Lender hereunder. 
To the extent that there is more than one Issuing Lender, each reference
to “Issuing Lender” herein shall be deemed, where appropriate, to be a
reference to the relevant Issuing Lender with respect to the relevant Letter of
Credit.

“L/C”: as defined in Section 3.7.

“L/C Arranger”: Wells Fargo Foothill, Inc., in
its capacity as the party responsible for causing the issuance of Letters of
Credit hereunder.

“L/C Commitment”:  $20,000,000.

“L/C Fee Payment Date”:  the last day of each March, June, September
and December and the last day of the Revolving Commitment Period.

“L/C Obligations”:  at any time, an amount equal to the sum,
without duplication, of (a) the aggregate then undrawn and unexpired amount of
the then outstanding Letters of Credit, (b) except to the extent the Letter of
Credit will, immediately upon issuance thereof, replace another outstanding
Letter of Credit, the Stated Amount of any Letter of Credit for which an
Application has been submitted and is pending and has not been withdrawn or
revoked, but that has not yet been issued, and (c) the aggregate amount of drawings
under Letters of Credit that have not then been reimbursed pursuant to Section
3.11.

 16

“L/C Participants”:  the collective reference to all the Revolving
Lenders other than the Issuing Lender.

“L/C Undertaking”: as defined in Section 3.7.

“Lender Group”: individually and collectively,
each of the Lenders (including the Issuing Lender) and Administrative Agent.

“Lender Group Expenses”: all fees, costs, and
expenses (including taxes, and insurance premiums) required to be paid by
Borrower pursuant to Section 11.5.

“Lenders”: 
as defined in the preamble hereto; provided, that unless the
context otherwise requires, each reference herein to the Lenders shall be
deemed to include any Conduit Lender.

“Letter of Credit”: an L/C or an L/C
Undertaking, as the context requires.

“Lien”: 
any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), charge or other security interest or
any preference, priority or other security agreement or preferential
arrangement of any kind or nature whatsoever (including any conditional sale or
other title retention agreement and any capital lease having substantially the
same economic effect as any of the foregoing).

“Loan”: 
any loan made by any Lender pursuant to this Agreement, including
without limitation Revolving Loans, Term Loans, and Incremental Term Loans.

“Loan Documents”:  this Agreement, the Applications, the
Security Documents, the Syndication Letter, the Fee Letter, and the Notes.

“Loan Parties”: 
each Group Member that is a party to a Loan Document.

“Long-Term Debt”:  as to any Person, all Indebtedness of such
Person that matures more than one fiscal year from the date of its creation or
matures within one fiscal year from such date but is renewable or extendible,
at the option of such Person, to a date more than one fiscal year from such
date or arises under a revolving credit or similar agreement that obligates the
lender or lenders to extend credit during a period of more than one fiscal year
from such date, including all current maturities and current sinking fund
payments in respect of such Indebtedness whether or not required to be paid
within one fiscal year from the date of its creation and, in the case of the
Borrower, Indebtedness in respect of the Loans.

“Majority Facility Lenders”:  with respect to any Facility, the holders of
more than 50% of the aggregate unpaid principal amount of the Term Loans,
Incremental Term Loans, or the Total Revolving Extensions of Credit, as the
case may be, outstanding under such Facility (or, in the case of the Revolving
Facility, prior to any termination of the Revolving Commitments, the holders of
more than 50% of the Total Revolving Commitments).

“Material Acquisition”: as defined in the
definition of Consolidated EBITDA.

 17
 

“Material Adverse Effect”:  a material adverse effect on (a) the
business, assets, property, condition (financial or otherwise) or results of
operations of the Borrower and its Subsidiaries taken as a whole or (b) the
validity or enforceability of this Agreement or any of the other Loan Documents
or the rights or remedies of the Administrative Agent or the Lenders hereunder
or thereunder.

“Materials of Environmental Concern”:  any gasoline or petroleum (including crude
oil or any fraction thereof) or petroleum products or any hazardous or toxic
substances, materials or wastes, defined or regulated as such in or under any
Environmental Law, including asbestos, polychlorinated biphenyls and
urea-formaldehyde insulation.

“Maturity Date”:  June 28, 2012.

“Mortgage”: each of the mortgages and deeds of
trust made by any Loan Party in favor of, or for the benefit of, the
Administrative Agent for the benefit of the Secured Parties.

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

“Net Cash Proceeds”:  (a) in connection with any Asset Sale or any
Recovery Event, the proceeds thereof received by any Group Member in the form
of cash and Cash Equivalents (including any such proceeds received by way of
deferred payment of principal pursuant to a note or installment receivable or
purchase price adjustment receivable or by the Disposition of any non-cash
consideration received in connection therewith or otherwise, but only as and
when received) of such Asset Sale or Recovery Event, net of attorneys’ fees,
accountants’ fees, other consultants’ fees, investment banking or brokerage
fees, amounts required to be applied to the repayment of Indebtedness secured
by a Lien expressly permitted hereunder on any asset that is the subject of
such Asset Sale or Recovery Event (other than any Lien pursuant to a Security
Document) and other customary fees and expenses actually incurred in connection
therewith and net of taxes paid or reasonably estimated to be payable as a
result thereof (after taking into account any available tax credits or
deductions and any tax sharing arrangements) and net of reserve amounts
established by the Borrower or any of its Subsidiaries for liabilities
reasonably anticipated in connection with such Asset Sale or Recovery Event so
long as such reserve amounts are comprised of segregated cash or Cash Equivalents
and will constitute Net Cash Proceeds to the extent such reserve amounts are no
longer required to be maintained and (b) in connection with any issuance or
sale of Capital Stock, any capital contribution or any incurrence of
Indebtedness, the cash proceeds received by any Group Member from such
issuance, contribution or incurrence, net of attorneys’ fees, other consultants’
fees, investment banking or brokerage fees, accountants’ fees, underwriting
discounts and commissions and other customary fees and expenses actually
incurred in connection therewith.

“NJEDA Debt”: 
the New Jersey Economic Development Authority Notes in a principal
amount (including accrued interest) not to exceed $1,268,000.

“Non-Excluded Taxes”:  as defined in Section 4.10(a).

“Non-U.S. Lender”:  as defined in Section 4.10(d).

 18
 

“Notes”: 
the collective reference to any promissory note evidencing Loans.

“Obligations”: 
(a) all loans (including the Term Loans and Incremental Term Loans),
Revolving Loans, debts, principal, interest (including any interest that
accrues after the commencement of an Insolvency Proceeding, regardless of
whether allowed or allowable in whole or in part as a claim in any such
Insolvency Proceeding), contingent reimbursement obligations with respect to
outstanding Letters of Credit, premiums, liabilities, obligations (including
indemnification obligations), fees, charges, costs, Lender Group Expenses
(including any fees or expenses that accrue after the commencement of an
Insolvency Proceeding, regardless of whether allowed or allowable in whole or
in part as a claim in any such Insolvency Proceeding), lease payments,
guaranties, covenants, and duties of any kind and description owing by Borrower
to the Lender Group, in each case pursuant to or evidenced by the Loan
Documents and irrespective of whether for the payment of money, whether direct
or indirect, absolute or contingent, due or to become due, now existing or
hereafter arising, and including all interest not paid when due and all other
expenses or other amounts that Borrower is required to pay or reimburse by the
Loan Documents or by law or otherwise in connection with the Loan Documents,
and (b) all Bank Product Obligations. 
Any reference in this Agreement or in the Loan Documents to the
Obligations shall include all or any portion thereof and any extensions,
modifications, renewals, or alterations thereof, both prior and subsequent to
any Insolvency Proceeding.

“Original Borrowing Date”: February 28,
2006.

“Original Closing Date”:  January 26, 2006.

“Original Credit Agreement”: as defined in the
recitals hereto.

“Original Loan Documents”:  as defined in Section 11.19.

“Original Term Loan”:  as defined in Section 11.19.

“Original Total Revolving Commitments”:  as defined in Section 11.19.

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

“Participant”: 
as defined in Section 11.6(c).

“PBGC”: 
the Pension Benefit Guaranty Corporation established pursuant to
Subtitle A of Title IV of ERISA (or any successor).

“Permitted Investors”:  the collective reference to the Sponsor and
its Control Investment Affiliates.

 19
 

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

“Plan”: 
at a particular time, any employee benefit plan that is covered by ERISA
and in respect of which the Borrower or a Commonly Controlled Entity is (or, if
such plan were terminated at such time, would under Section 4069 of ERISA be
deemed to be) an “employer” as defined in Section 3(5) of ERISA.

“Pro Forma Balance Sheet”:  as defined in Section 5.1(a).

“Pro Rata Share”:  as of any date of determination:

(a)           with
respect to a Lender’s obligation to make Revolving Loans and right to receive
payments of principal, interest, fees, costs, and expenses with respect
thereto, (i) prior to the Revolving Commitments being terminated or reduced to
zero, the percentage obtained by dividing (y) such Lender’s Revolving
Commitment, by (z) the aggregate Revolving Commitments of all Lenders, and (ii)
from and after the time that the Revolving Commitments have been terminated or
reduced to zero, the percentage obtained by dividing (y) the aggregate
outstanding principal amount of such Lender’s Revolving Loans by (z) the
aggregate outstanding principal amount of all Revolving Loans,

(b)           with
respect to a Lender’s obligation to participate in Letters of Credit, to
reimburse the Issuing Lender, and right to receive payments of fees with
respect thereto, (i) prior to the Revolving Commitments being terminated or
reduced to zero, the percentage obtained by dividing (y) such Lender’s
Revolving Commitment, by (z) the aggregate Revolving Commitments of all
Lenders, and (ii) from and after the time that the Revolving Commitments have
been terminated or reduced to zero, the percentage obtained by dividing (y) the
aggregate outstanding principal amount of such Lender’s Revolving Loans by (z)
the aggregate outstanding principal amount of all Revolving Loans,

(c)           with
respect to a Lender’s obligation to make the Term Loan and right to receive
payments of interest, fees, and principal with respect thereto, (i) prior to
the making of the Term Loan, the percentage obtained by dividing (y) such
Lender’s Term Loan Commitment, by (z) the aggregate amount of all Lenders’ Term
Loan Commitments, and (ii) from and after the making of the Term Loan, the
percentage obtained by dividing (y) the principal amount of such Lender’s
portion of the Term Loan by (z) the principal amount of the Term Loan,

(d)           with
respect to a Lender’s obligation to make the Incremental Term Loan and right to
receive payments of interest, fees, and principal with respect thereto, (i)
prior to the making of the Incremental Term Loan, the percentage obtained by
dividing (y) such Lender’s Incremental Term Loan Commitment, by (z) the
aggregate amount of all Lenders’ Incremental Term Loan Commitments, and (ii)
from and after the making of the Incremental Term Loan, the percentage obtained
by dividing (y) the principal amount of such Lender’s portion of the
Incremental Term Loan by (z) the principal amount of the Incremental Term Loan,
and

(e)           with
respect to all other matters as to a particular Lender (including the
indemnification obligations arising under Section 10.7), the percentage
obtained by dividing (i)

 20
 

such Lender’s Revolving Commitment plus the
outstanding principal amount of such Lender’s portion of the Term Loan plus
the outstanding principal amount of such Lender’s portion of the Incremental
Term Loan, by (ii) the aggregate amount of Revolving Commitments of all Lenders
plus the outstanding principal amount of the Term Loan plus the
outstanding principal amount of the Incremental Term Loan; provided, however,
that in the event the Revolving Commitments have been terminated or reduced to
zero, Pro Rata Share under this clause shall be the percentage obtained by
dividing (A) the outstanding principal amount of such Lender’s Revolving Loans plus
such Lender’s ratable portion of the Risk Participation Liability with respect
to outstanding Letters of Credit plus the outstanding principal amount
of such Lender’s portion of the Term Loan plus the outstanding principal
amount of such Lender’s portion of the Incremental Term Loan, by (B) the
outstanding principal amount of all Revolving Loans plus the aggregate
amount of the Risk Participation Liability with respect to outstanding Letters
of Credit plus the outstanding principal amount of the Term Loan plus
the outstanding principal amount of the Incremental Term Loan.

“Projections”: 
as defined in Section 7.2(b).

“Properties”: 
as defined in Section 5.17(a).

“Property”: 
as to any Person, any right or interest in or to property of any kind
whatsoever, whether real, personal or mixed and whether tangible or intangible,
including, without limitation, Capital Stock of any Subsidiary of such Person
but excluding any Capital Stock of such Person.

“Public Filings”:  the Borrower’s most recent filings on forms
10-K and 10-Q with the SEC since the Closing Date.

“Recovery Event”:  any settlement of or payment in respect of
any property or casualty insurance claim or any condemnation proceeding
relating to any asset of any Group Member that yields gross proceeds to any
Group Member in excess of $500,000.

“Reference Bank”:  Wells Fargo Bank.

“Refunded Swingline Loan”: as defined in Section
3.4.

“Refunding Date”: as defined in Section 3.4.

“Register”: 
as defined in Section 11.6(b).

“Regulation U”: 
Regulation U of the Board as in effect from time to time.

“Reimbursement Obligation”:  the obligation of the Borrower to reimburse
the Issuing Lender pursuant to Section 3.11 for amounts drawn under
Letters of Credit.

“Reinvestment Deferred Amount”: with respect to
any Reinvestment Event, the aggregate Net Cash Proceeds received by any Group
Member in connection therewith that are not applied to prepay the Term Loans or
Incremental Term Loans pursuant to Section 4.2(c) as a result of the
delivery of a Reinvestment Notice.

 21
 

“Reinvestment Event”: any Asset Sale or
Recovery Event in respect of which the Borrower has delivered a Reinvestment
Notice.

“Reinvestment Notice”: a written notice
executed by a Responsible Officer stating that no Event of Default has occurred
and is continuing and that the Borrower (directly or through a Subsidiary)
intends and expects to use all or a specified portion of the Net Proceeds of an
Asset Sale or Recovery Event to acquire or repair fixed or capital assets
useful in its business.

“Reinvestment Prepayment Amount”:  with respect to any Reinvestment Event, the
Reinvestment Deferred Amount relating thereto less any amount expended prior to
the relevant Reinvestment Prepayment Date to acquire or repair fixed or capital
assets useful in the Borrower’s business.

“Reinvestment Prepayment Date”: with respect to
any Reinvestment Event, the earlier of (a) the date occurring six months after
such Reinvestment Event and (b) the date on which the Borrower shall have
determined not to, or shall have otherwise ceased to, acquire or repair fixed
or capital assets useful in the Borrower’s business with all or any portion of
the relevant Reinvestment Deferred Amount, provided that to the extent
the Borrower or any of its Subsidiaries has entered a binding agreement within
six months after such Reinvestment Event to acquire or repair fixed or capital
assets useful in the Borrower’s business, the six month period in clause (a)
shall be extended for an additional period of six months (or, if earlier, the
expiration or termination of such binding agreement).

“Reorganization”:  with respect to any Multiemployer Plan, the
condition that such plan is in reorganization within the meaning of Section
4241 of ERISA.

“Replacement Equity”:  the collective reference to any Capital Stock
issued by the Borrower after the Closing Date, the Net Cash Proceeds of which
are used substantially concurrently, after giving effect to any required notice
of redemption, to redeem all or a portion of the outstanding Series Z Preferred
so long as such Capital Stock consists of either:  (a) preferred stock of the Borrower (not
constituting Indebtedness), the terms of which are (i) no less favorable to the
Lenders, taken as a whole, than the Series Z Preferred and, in any event, the
terms of which do not require cash payment of dividends or mandatory redemption
or repurchase thereof prior to the date that is six years and six months after
the Closing Date, or (ii) otherwise reasonably satisfactory to the
Administrative Agent or (b) common stock of the Borrower.

“Reportable Event”:  any of the events set forth in Section
4043(b) of ERISA, other than those events as to which the thirty day notice
period is waived under subsections .27, .28, .29, .30, .31, .32, .34 or .35 of
PBGC Reg. § 4043.

“Required Lenders”:  at any time, Lenders whose aggregate Pro Rata
Shares (calculated under clause (e) of the definition of Pro Rata Shares)
exceed 50%; provided that at any time when there are two (2) or more
Lenders, “Required Lenders” must include at least 2 Lenders.

“Requirement of Law”:  as to any Person, the Certificate of Incorporation
and By–Laws or other organizational or governing documents of such Person, and
any law, treaty, rule or regulation or determination of an arbitrator or a
court or other Governmental Authority, in

 22
 

each case applicable to or binding upon such Person or
any of its property or to which such Person or any of its property is subject.

“Responsible Officer”:  the chief executive officer, president or
chief financial officer of the Borrower, but in any event, with respect to
financial matters, the chief financial officer of the Borrower.

“Restricted Payments”:  as defined in Section 8.6.

“Revolving Commitment”:  as to any Lender, the obligation of such
Lender, if any, to make Revolving Loans and Swingline Loans and participate in
Letters of Credit in an aggregate principal and/or face amount not to exceed
the amount set forth under the heading “Revolving Commitment” under such Lender’s
name on such Lender’s Addendum or in the Assignment and Assumption pursuant to
which such Lender became a party hereto, as the same may be changed from time
to time pursuant to the terms hereof. 
The original amount of the Total Revolving Commitments is $20,000,000.

“Revolving Commitment Period”:  the period from and including the Initial
Borrowing Date to the Revolving Termination Date.

“Revolving Extensions of Credit”:  as to any Revolving Lender at any time, an
amount equal to the sum of (a) the aggregate principal amount of all Revolving
Loans held by such Lender then outstanding, (b) such Lender’s Pro Rata Share of
the L/C Obligations then outstanding and (c) such Lender’s Pro Rata Share of
the aggregate principal amount of the Swingline then outstanding.

“Revolving Facility”:  as defined in the definition of “Facility.”

“Revolving Lender”:  each Lender that has a Revolving Commitment
or that holds Revolving Extensions of Credit.

“Revolving Loans”:  as defined in Section 3.1(a).

“Revolving Termination Date”:  the earlier of (a) the date on which the
Revolving Commitments are terminated pursuant to Section 9 and (b) the
Maturity Date.

“Risk Participation Liability”:  as to each Letter of Credit, all
reimbursement obligations of Borrower to the Issuing Lender with respect to an
L/C Undertaking, consisting of (a) the amount available to be drawn or which
may become available to be drawn, (b) all amounts that have been paid by the
Issuing Lender to the Underlying Issuer to the extent not reimbursed by
Borrower, whether by the making of a Revolving Loan or otherwise, and (c) all
accrued and unpaid interest, fees, and expenses payable with respect thereto.

“SEC”: 
the Securities and Exchange Commission, any successor thereto and any
analogous Governmental Authority.

 23
 

“Second Lien Credit Agreement”:  the Second Lien Credit Agreement, dated as of
January 26, 2006, among the Borrower, the several banks and other financial
institutions from time to time parties thereto and Bear Stearns Corporate
Lending, Inc., as administrative agent.

“Second Lien Term Loans”:  the term loans made under the Second Lien
Credit Agreement.

“Secured Parties”:  as defined in the Guarantee and Collateral
Agreement.

“Security Documents”:  the collective reference to the Guarantee and
Collateral Agreement, the Mortgages, if any, and all other security documents
hereafter delivered to the Administrative Agent granting a Lien on any property
of any Person to secure the obligations and liabilities of any Loan Party to
Administrative Agent, the Lenders and the Bank Product Providers under the Loan
Documents.

“Series Z Preferred”:  the 57,000 shares of Series Z Preferred Stock
issued by the Borrower, par value $0.001 per share.

“Single Employer Plan”:  any Plan that is covered by Title IV of
ERISA, but that is not a Multiemployer Plan.

“Solvent”: 
when used with respect to any Person, means that, as of any date of determination,
(a) the fair value of the assets of such Person will, as of such date, exceed
the amount of all debts of such Person, contingent or otherwise, as of such
date, (b) the fair value of the assets of such Person will, as of such date, be
greater than the amount that will be required to pay the liability of such
Person on its debts as such debts become absolute and matured, (c) such Person
will not have, as of such date, an unreasonably small amount of capital with
which to conduct its business, and (d) such Person will be able to pay its
debts as they mature.  For purposes of
this definition, (i) “debt” means liability on a “claim”, and (ii) “claim”
means any (x) right to payment, whether or not such a right is reduced to
judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured,
disputed, undisputed, legal, equitable, secured or unsecured or (y) right to an
equitable remedy for breach of performance if such breach gives rise to a right
to payment, whether or not such right to an equitable remedy is reduced to
judgment, fixed, contingent, matured or unmatured, disputed, undisputed,
secured or unsecured.

“Specified Change of Control”:  the occurrence of a “Merger” or “Change of
Control” (or any other defined term having a similar purpose) as defined in the
Certificate of Designation for the Series Z Preferred (and any Replacement
Equity), provided that a “Specified Change of Control” shall only occur
in respect of the Series Z Preferred (and any Replacement Equity) to the extent
that (a) any shares of Series Z Preferred (and any Replacement Equity) remain
outstanding and (b) the occurrence of a “Merger” or “Change of Control” (or any
other defined term having a similar purpose) gives the holder of such shares of
Series Z Preferred (and any Replacement Equity) the right to cause such shares
to be redeemed or repurchased at the option of such holder.

“Sponsor”: 
Greenlight Capital, Inc. and its Control Investment Affiliates.

 24
 

“Stated Amount”:  as to any Letter of Credit, at any time, the
maximum amount that then is or may become available to be drawn thereunder,
determined without regard to whether any conditions to drawing could then be
met.

“Subordinated Loan Agreement”:  the Subordinated Loan Agreement, dated as of
January 26, 2006, among the Borrower, Greenlight Capital, L.P., Greenlight
Capital Qualified, L.P. and the other lenders from time to time parties
thereto.

“Subordinated Loans”:  the loans made on the Original Borrowing Date
pursuant to the Subordinated Loan Agreement.

“Subsidiary”: 
as to any Person, a corporation, partnership, limited liability company
or other entity (a) of which shares of stock or other ownership interests
having ordinary voting power (other than stock or such other ownership
interests having such power only by reason of the happening of a contingency)
to elect a majority of the board of directors or other managers of such
corporation, partnership or other entity are at the time owned, by such Person,
or (b) the management of which is otherwise controlled, directly or indirectly
through one or more intermediaries, or both, by such Person, but only if, in
the case of this clause (b), such entity is treated as a consolidated
subsidiary under GAAP.  Unless otherwise
qualified, all references to a “Subsidiary” or to “Subsidiaries” in this
Agreement shall refer to a Subsidiary or Subsidiaries of the Borrower.  Inactive Subsidiaries shall not be “Subsidiaries”
of the Borrower for purposes of Section 5 (other than Section 5.22),
Section 7 or Section 8 (other than Section 8.17).

“Subsidiary Guarantor”:  each Subsidiary of the Borrower other than
any Foreign Subsidiary or any Inactive Subsidiary.

“Swingline Commitment”: the obligations of the
Swingline Lender to make Swingline Loans pursuant to Section 3.3 in an
aggregate amount at any one time outstanding not to exceed $3,000,000.

“Swingline Lender”: WFF, in its capacity as the
lender of the Swingline Loans.

“Swingline Loans”: as defined in Section 3.3.

“Swingline Participation Amount”: as defined in
Section 3.4.

“Syndication Letter”: that certain letter
agreement dated contemporaneously herewith, by and between Borrower and
Administrative Agent, which is in form and substance satisfactory to
Administrative Agent.

“Term Lender”: 
each Lender that has a Term Commitment or that holds a Term Loan.

“Term Loan”: 
as defined in Section 2.1(a).

“Term Loan Commitment”: as to any Lender, the
obligation of such Lender, if any, to make a Term Loan to the Borrower
hereunder in a principal amount not to exceed the

 25
 

amount set forth under the heading “Term Commitment”
under such Lender’s name on such Lender’s Addendum.  The original aggregate amount of the Term
Loan Commitments is $90,000,000.

“Term Loan Commitment Period”:  the period from and including the Closing
Date to and including the Initial Borrowing Date.

“Total Revolving Commitments”:  at any time, the aggregate amount of the
Revolving Commitments then in effect.

“Total Revolving Extensions of Credit”:  at any time, the aggregate amount of the
Revolving Extensions of Credit of the Revolving Lenders outstanding at such
time.

“Transferee”: 
any Assignee or Participant.

“Type”: 
as to any Loan, its nature as a Base Rate Loan or a Eurodollar Loan.

“Underlying Issuer”:  a third Person which is the beneficiary of an
L/C Undertaking and which has issued a Letter of Credit at the request of the
Issuing Lender for the benefit of Borrower, in each case pursuant to the
Borrower’s instructions in any Application.

“Underlying Letter of Credit”:  a Letter of Credit that has been issued by an
Underlying Issuer.

“United States”:  the United States of America.

“Updated Projections”:  the updated projections delivered by the
Borrower to the Lenders on February 8, 2007, as supplemented on
May 21, 2007, in connection with the Original Agreement.

“Voidable Transfer”: as defined in Section
11.16.

“Wells Fargo Bank”: Wells Fargo Bank, National
Association, a national banking association.

“WFF”: 
as defined in the preamble to this Agreement.

“Wholly Owned Subsidiary”:  as to any Person, any other Person all of the
Capital Stock of which (other than directors’ qualifying shares required by law
or shares held by nominees as required by law) is owned by such Person directly
and/or through other Wholly Owned Subsidiaries.

“Wholly Owned Subsidiary Guarantor”:  any Subsidiary Guarantor that is a Wholly
Owned Subsidiary of the Borrower.

1.2.          Other Definitional
Provisions.  (a)  Unless otherwise specified therein, all terms
defined in this Agreement shall have the defined meanings when used in the
other Loan Documents or any certificate or other document made or delivered
pursuant hereto or thereto.

 26
 

(b)           As used herein and in
the other Loan Documents, and any certificate or other document made or
delivered pursuant hereto or thereto, (i) accounting terms relating to any
Group Member not defined in Section 1.1 and accounting terms partly
defined in Section 1.1, to the extent not defined, shall have the
respective meanings given to them under GAAP, (ii) the words “include,” “includes”
and “including” shall be deemed to be followed by the phrase “without
limitation”, (iii) the word “incur” shall be construed to mean incur, create,
issue, assume, become liable in respect of or suffer to exist (and the words “incurred”
and “incurrence” shall have correlative meanings), (iv) the words “asset” and “property”
(when used in the lower case) 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, Capital Stock, securities, revenues, accounts, leasehold
interests and contract rights, (v) references to agreements or other
Contractual Obligations shall, unless otherwise specified, be deemed to refer
to such agreements or Contractual Obligations as amended, supplemented,
restated or otherwise modified from time to time (subject to any applicable
restrictions hereunder) and (vi) any reference herein or in any other Loan
Document to the satisfaction or repayment in full of the Obligations shall mean
the repayment in full in cash of all Obligations (other than unasserted
contingent indemnification Obligations and other than any Bank Product
Obligations that, at such time, are not then due and payable in accordance with
the terms of the Bank Product Agreement evidencing any such Bank Product
Obligation) and the termination of all Commitments hereunder.

(c)           The
words “hereof,” “herein” and “hereunder” and words of similar import when used
in this Agreement shall refer to this Agreement as a whole and not to any
particular provision of this Agreement, and Section, Schedule and Exhibit
references are to this Agreement unless otherwise specified.

(d)           The
meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

(e)           Except
as otherwise expressly provided herein, all terms of an accounting or financial
nature shall be construed in accordance with GAAP; provided that, if the
Borrower notifies the Administrative Agent that such Borrower requests an
amendment to any provision hereof to eliminate the effect of any change
occurring after the date hereof in GAAP or in the application thereof on the
operation of such provision (or if the Administrative Agent notifies the
Borrower that the Required Lenders request an amendment to any provision hereof
for such purpose), regardless of whether any such notice is given before or
after such change in GAAP or in the application thereof, then such provision
shall be interpreted on the basis of GAAP as in effect and applied immediately
before such change shall have become effective until such notice shall have
been withdrawn or such provision amended in accordance herewith.

(f)            References
herein to fiscal periods ending on March 31, June 30, September 30 or December
31 during any fiscal year of the Borrower, shall mean the applicable fiscal
period of the Borrower ending on or about such date.

 27
 

Section 2.    AMOUNT
AND TERMS OF TERM COMMITMENTS

2.1.          Term Commitments.

(a)           Subject
to the terms and conditions hereof (including Sections 6.1, 6.3,
and 11.18), each Term Lender severally agrees to make a term loan (a
“Term Loan”) to the Borrower on the Initial Borrowing Date in an amount
equal to the amount of the Term Commitment of such Lender, provided that
at the end of the last day of the Term Loan Commitment Period, the Term Commitment
of each Term Lender, if any, shall automatically be reduced to zero.  The Term Loans shall be made in a single
drawing and shall be made on the Initial Borrowing Date.  The Term Loans may from time to time be
Eurodollar Loans or Base Rate Loans, as determined by the Borrower and notified
to the Administrative Agent in accordance with Sections 2.2 and 4.3.

(b)           Subject
to the terms and conditions hereof (including Sections 6.3
and 6.4), each Incremental Term Lender severally agrees to make a term
loan (an “Incremental Term Loan”) to the Borrower on the Incremental
Borrowing Date in an amount equal to the amount of the Incremental Term Loan
Commitment of such Lender, provided that on the earlier to occur of (x)
the close of business on the Incremental Borrowing Date and (y) the close of
business on the last day of the Incremental Term Loan Commitment Period, the
Incremental Term Commitment of each Incremental Term Lender, if any, shall
automatically be reduced to zero.  The
Incremental Term Loan shall be made in a single drawing and shall be made on
the Incremental Borrowing Date to be used solely for the purpose of redeeming
the Borrower’s outstanding Series Z Preferred. 
The Incremental Term Loans may from time to time be Eurodollar Loans or
Base Rate Loans, as determined by the Borrower and notified to the
Administrative Agent in accordance with Sections 2.2 and 4.3.

2.2.          Procedure for Term
Loan Borrowing and Incremental Term Loan Borrowing.

(a)           Term
Loans.  On the Initial Borrowing
Date, each Term Loan Lender shall make available to the Administrative Agent at
the Funding Office an amount in immediately available funds equal to the Term
Loans to be made by such Lender.  In the
event that, on the Initial Borrowing Date, the conditions set forth in Sections
6.1 and 6.3 are satisfied, the Administrative Agent shall make
available to the Borrower the aggregate amounts made available to the
Administrative Agent by the Term Lenders in immediately available funds in
accordance with the irrevocable instructions provided by the Borrower in
connection with its notice of borrowing.

(b)           Incremental
Term Loans.  The Borrower shall
notify the Administrative Agent of the anticipated Incremental Borrowing Date
at least two Business Days prior to the occurrence thereof and shall give them
a notice specifying (i) the amount and Type of Incremental Term Loans to be
borrowed, (ii) the anticipated date of the Incremental Borrowing Date, which
shall be a Business Day, and (iii) the respective amounts of each such Type of
Loan and the respective lengths of the initial Interest Period therefor.  Upon receipt of such borrowing notice the
Administrative Agent shall promptly notify each Incremental Term Lender
thereof.  Not later than 11:00 A.M., New
York City time, on the Incremental Borrowing Date each Incremental Term Loan
Lender shall make available to the Administrative Agent at the Funding Office
an amount in immediately available funds equal to the Incremental Term Loans to
be made by such Lender.  In the event
that, on the Incremental Borrowing Date, the conditions set forth in Sections
6.3 and 6.4 are satisfied, the Administrative Agent shall make
available to the

 28
 

Borrower the aggregate amounts made available to the Administrative
Agent by the Incremental Term Lenders in immediately available funds in
accordance with the irrevocable instructions provided by the Borrower in
connection with its notice of borrowing.

2.3.          Repayment of Term
Loans and Incremental Term Loans.

(a)           The
Term Loans shall be repaid in equal consecutive quarterly installments
commencing on September 30, 2007 and continuing thereafter on the last day
of each fiscal quarter of Borrower thereafter, each in the amount of $225,000,
and any amount remaining unpaid shall be due and payable in full on the Maturity
Date.

(b)           The
Incremental Term Loans shall be repaid in equal quarterly installments,
commencing on the last day of the quarter in which the Incremental Borrowing
Date occurs and continuing thereafter on the last day of each fiscal quarter of
Borrower thereafter, each of which shall be in an amount equal to 0.25% of the
original principal amount of the Incremental Term Loan, and any amount
remaining unpaid shall be due and payable in full on the Maturity Date.

Section 3.    AMOUNT
AND TERMS OF REVOLVING COMMITMENTS

3.1.          Revolving Commitments.  (a) 
Subject to the terms and conditions hereof, each Revolving Lender
severally agrees to make revolving credit loans (“Revolving Loans”) to
the Borrower from time to time during the Revolving Commitment Period in an
aggregate principal amount at any time outstanding which, when added to such
Lender’s Pro Rata Share of the L/C Obligations then outstanding, does not
exceed the amount of such Lender’s Revolving Commitment.  During the Revolving Commitment Period the Borrower
may use the Revolving Commitments by borrowing, prepaying and reborrowing the
Revolving Loans in whole or in part, all in accordance with the terms and
conditions hereof.  The Revolving Loans
may from time to time be Eurodollar Loans or Base Rate Loans, as determined by
the Borrower and notified to the Administrative Agent in accordance with Sections
3.2 and 4.3.

(b)           The
Borrower shall repay all outstanding Revolving Loans on the Revolving
Termination Date.

3.2.          Procedure for
Revolving Loan Borrowing.  The
Borrower may borrow under the Revolving Commitments during the Revolving
Commitment Period on any Business Day, provided that the Borrower shall
give the Administrative Agent irrevocable written notice (it being understood
that the Administrative Agent may accept a telephonic notice given by an
Authorized Person and to be followed by a written confirmation by the next day,
provided, that failure to deliver such written notice shall not affect
the validity of any such request) (which notice must be received by the
Administrative Agent prior to 1:00 P.M., New York City time, (a) three Business
Days prior to the requested Borrowing Date, in the case of Eurodollar Loans, or
(b) one Business Day prior to the requested Borrowing Date, in the case of Base
Rate Loans) (provided that any such notice of a borrowing of Base Rate
Loans to finance payments required to be made pursuant to Section 3.5
may be given not later than 11:00 A.M., New York City time, on the date of the
proposed borrowing), specifying (i) the amount and Type of Revolving Loans to
be borrowed, (ii) the requested Borrowing Date and (iii) in the case of
Eurodollar Loans, the

 29
 

respective
amounts of each such Type of Loan and the respective lengths of the initial
Interest Period therefor; provided, that, at the Administrative Agent’s
option, any such borrowing request relating to Base Rate Loans can, subject to Section
3.3, be funded as Swingline Loans by notice to the Borrower.  Each borrowing under the Revolving
Commitments shall be in an amount equal to (x) in the case of Base Rate Loans,
$1,000,000 or a whole multiple of $250,000 in excess thereof (or, if the then
aggregate Available Revolving Commitments are less than $1,000,000, such lesser
amount) and (y) in the case of Eurodollar Loans, $1,000,000 or a whole multiple
of $250,000 in excess thereof; provided, that (x) the Swingline Lender
may request, on behalf of the Borrower, borrowings under the Revolving
Commitments that are Base Rate Loans in other amounts pursuant to Section
3.6 and (y) borrowings of Base Rate Loans pursuant to Section 3.11
shall not be subject to the foregoing minimum amounts.  Upon receipt of any such notice from the
Borrower, the Administrative Agent shall promptly notify each Revolving Lender
thereof.  Each Revolving Lender will make
the amount of its Pro Rata Share of each borrowing available to the
Administrative Agent for the account of the Borrower at the Funding Office
prior to 1:00 P.M., New York City time (provided, that in the case of a
borrowing of a Base Rate Loan under Section 3.11 each Revolving Lender
will make the amount of its Pro Rata Share of such borrowing available to the
Administrative Agent for the account of the Borrower at the Funding Office by
12:00 Noon, New York City time), on the Borrowing Date requested by the
Borrower in funds immediately available to the Administrative Agent.  Such borrowing will then be made available to
the Borrower by the Administrative Agent crediting the account of the Borrower
on the books of such office with the aggregate of the amounts made available to
the Administrative Agent by the Revolving Lenders and in like funds as received
by the Administrative Agent.

3.3.          Swingline Commitment.  (a) 
Subject to the terms and conditions hereof, the Swingline Lender agrees
to make a portion of the credit otherwise available to the Borrower under the
Revolving Commitments from time to time during the Revolving Commitment Period
by making swing line loans (“Swingline Loans”) to the Borrower; provided
that (i) the aggregate principal amount of Swingline Loans outstanding at any
time shall not exceed the Swingline Commitment then in effect (notwithstanding
that the Swingline Loans outstanding at any time, when aggregated with the
Swingline Lender’s other outstanding Revolving Loans hereunder, may exceed the
Swingline Commitment then in effect) and (ii) the Borrower shall not request,
and the Swingline Lender shall not make, any Swingline Loan if, after giving
effect to the making of such Swingline Loan, the aggregate amount of the Available
Revolving Commitments would be less than zero. 
During the Revolving Commitment Period, the Borrower may use the
Swingline Commitment by borrowing, repaying and reborrowing, all in accordance
with the terms and conditions hereof. 
Swingline Loans shall be Base Rate Loans only.

(b)             The Borrower shall repay all outstanding
Swingline Loans on the Revolving Termination Date.

3.4.          Procedure for
Swingline Borrowing; Refunding of Swingline Loans.  (a) 
Whenever the Borrower desires that the Swingline Lender make Swingline
Loans it shall give the Swingline Lender irrevocable telephonic notice
confirmed promptly in writing (which telephonic notice must be received by the
Swingline Lender not later than 2:00 P.M., New York City time, on the proposed
Borrowing Date), specifying (i) the amount to be borrowed and (ii) the
requested Borrowing Date (which shall be a Business Day during the Revolving

 30
 

Commitment
Period).  Each borrowing under the
Swingline Commitment shall be in an amount equal to $500,000 or a whole
multiple of $100,000 in excess thereof. 
Not later than 4:00 P.M., New York City time, on the Borrowing Date
specified in a notice in respect of Swingline Loans, the Swingline Lender shall
make available to the Administrative Agent at the Funding Office an amount in
immediately available funds equal to the amount of the Swingline Loan to be
made by the Swingline Lender.  The
Administrative Agent shall make the proceeds of such Swingline Loan available
to the Borrower on such Borrowing Date by depositing such proceeds in the
account of the Borrower with the Administrative Agent on such Borrowing Date in
immediately available funds.

(b)             The Swingline Lender, at any time and from
time to time in its sole and absolute discretion may (and shall at least once during
each week in which the Administrative Agent shall have exercised its option to
cause requested Revolving Loans to be funded as Swingline Loans), on behalf of
the Borrower (which hereby irrevocably directs the Swingline Lender to act on
its behalf), on one Business Day’s notice given by the Swingline Lender no
later than 1:00 P.M., New York City time, request each Revolving Lender to
make, and each Revolving Lender hereby agrees to make, a Revolving Loan, in an
amount equal to such Revolving Lender’s Pro Rata Share of the aggregate amount
of the Swingline Loans (the “Refunded Swingline Loans”) outstanding on
the date of such notice, to repay the Swingline Lender.  Each Revolving Lender shall make the amount
of such Revolving Loan available to the Administrative Agent at the Funding
Office in immediately available funds, not later than 11:00 A.M., New York City
time, one Business Day after the date of such notice.  The proceeds of such Revolving Loans shall be
immediately made available by the Administrative Agent to the Swingline Lender
for application by the Swingline Lender to the repayment of the Refunded
Swingline Loans.

(c)           The
Administrative Agent shall give the Revolving Lenders notice one Business Day’s
notice, to make, and each Revolving Lender hereby agrees to make, a Revolving
Loan, in an amount equal to such Revolving Lender’s Pro Rata Share of the
aggregate amount of the borrowing request made as Swingline Loans pursuant to Section
3.2.  Each Revolving Lender shall
make the amount of such Revolving Loan available to the Administrative Agent at
the Funding Office in immediately available funds, not later than 11:00 A.M.,
New York City time, one Business Day after the date of such notice.  The proceeds of such Revolving Loans shall be
immediately made available by the Administrative Agent to the Borrower for
application by the Borrower to the repayment of the Swingline Loans made
pursuant to Section 3.2.

(d)             If prior to the time a Revolving Loan would
have otherwise been made pursuant to Section 3.4(b), one of the events
described in Section 9(f) shall have occurred and be continuing with
respect to the Borrower or if for any other reason, as determined by the
Swingline Lender in its sole discretion, Revolving Loans may not be made as
contemplated by Section 3.4(b), each Revolving Lender shall, on the date
such Revolving Loan was to have been made pursuant to the notice referred to in
Section 3.4(b) (the “Refunding Date”), purchase for cash an
undivided participating interest in the then outstanding Swingline Loans by
paying to the Swingline Lender an amount (the “Swingline Participation
Amount”) equal to (i) such Revolving Lender’s Pro Rata Share (calculated in
accordance with clause (a) of the definition thereof) times (ii) the sum
of the aggregate principal amount of Swingline Loans then outstanding that were
to have been repaid with such Revolving Loans.

 31

(e)           Whenever,
at any time after the Swingline Lender has received from any Revolving Lender
such Lender’s Swingline Participation Amount, the Swingline Lender receives any
payment on account of the Swingline Loans, the Swingline Lender will distribute
to such Lender its Swingline Participation Amount (appropriately adjusted, in
the case of interest payments, to reflect the period of time during which such
Lender’s participating interest was outstanding and funded and, in the case of
principal and interest payments, to reflect such Lender’s pro  rata
portion of such payment if such payment is not sufficient to pay the principal
of and interest on all Swingline Loans then due); provided, however,
that in the event that such payment received by the Swingline Lender is
required to be returned, such Revolving Lender will return to the Swingline
Lender any portion thereof previously distributed to it by the Swingline
Lender.

(f)            Each
Revolving Lender’s obligation to make the Loans referred to in Section
3.4(b) and to purchase participating interests pursuant to Sections
3.4(c) and (d) shall be absolute and unconditional and shall not be
affected by any circumstance, including (i) any setoff, counterclaim,
recoupment, defense or other right that such Revolving Lender or the Borrower
may have against the Swingline Lender or the Administrative Agent, as the case
may be, the Borrower or any other Person for any reason whatsoever; (ii) the
occurrence or continuance of a Default or an Event of Default or the failure to
satisfy any of the other conditions specified in Section 6; (iii) any
adverse change in the condition (financial or otherwise) of the Borrower; (iv)
any breach of this Agreement or any other Loan Document by the Borrower, any
other Loan Party or any other Revolving Lender; or (v) any other circumstance,
happening or event whatsoever, whether or not similar to any of the foregoing.

3.5.          Commitment Fees, etc.  (a) 
The Borrower agrees to pay to the Administrative Agent for the account
of each Revolving Lender a commitment fee for the period from and including the
Closing Date to the last day of the Revolving Commitment Period, computed at
the Commitment Fee Rate on the average daily amount of the Available Revolving
Commitment of such Lender during the period for which payment is made, payable
quarterly in arrears on the last day of each March, June, September and
December and on the Revolving Termination Date, commencing on June 30,
2007.

(b)           The
Borrower agrees to pay to the Administrative Agent the fees in the amounts and
on the dates previously agreed to in writing by the Borrower and the
Administrative Agent.

3.6.          Termination or
Reduction of Revolving Commitments. 
The Borrower shall have the right, upon not less than three Business
Days’ notice to the Administrative Agent, to terminate the Revolving
Commitments or, from time to time, to reduce the amount of the Revolving
Commitments; provided that no such termination or reduction of Revolving
Commitments shall be permitted if, after giving effect thereto and to any
prepayments of the Revolving Loans and Swingline Loans made on the effective
date thereof, the Total Revolving Extensions of Credit would exceed the Total
Revolving Commitments.  Any such
reduction shall be in an amount equal to $1,000,000, or a whole multiple
thereof, and shall reduce permanently the Revolving Commitments then in effect.

 32
 

3.7.          L/C Commitment.  (a) 
Subject to the terms and conditions hereof, the L/C Arranger agrees to
cause the Issuing Lender designated by it, in reliance on the agreements of the
other Revolving Lenders set forth in Section 3.10(a), to issue letters
of credit (a “L/C”) or to purchase participations or execute indemnities
or reimbursement obligations (each such undertaking, an “L/C Undertaking”)
with respect to letters of credit issued by an Underlying Issuer (as of the
Closing Date, the prospective Underlying Issuer is to be Wells Fargo Bank) for
the account of the Borrower on any Business Day during the Revolving Commitment
Period in such form as may be approved from time to time by the L/C Arranger
and the Issuing Lender; provided that, the L/C Arranger shall have no
obligation to cause any Letter of Credit to be issued if, after giving effect
to such issuance, (i) the L/C Obligations would exceed the L/C Commitment or
(ii) the aggregate amount of the Available Revolving Commitments would be less
than zero.  Each Letter of Credit shall
(i) be denominated in Dollars, (ii) have a face amount of at least $250,000
(unless otherwise agreed by the L/C Arranger and the Issuing Lender) and (iii)
expire no later than the earlier of (x) the first anniversary of its date of
issuance and (y) the date that is five Business Days prior to the Revolving
Termination Date, provided that any Letter of Credit with a one-year
term may provide for the renewal thereof for additional one-year periods (which
shall in no event extend beyond the date referred to in clause (y) above).

(b)           The
L/C Arranger shall not at any time be obligated to cause any Letter of Credit
to be issued hereunder if such issuance would conflict with, or cause the L/C
Arranger, the Issuing Lender, Underlying Issuer, or any L/C Participant to
exceed any limits imposed by, any applicable Requirement of Law.

3.8.          Procedure for
Issuance of Letter of Credit.  The
Borrower may from time to time request that the L/C Arranger cause a Letter of
Credit to be issued by an Issuing Lender by delivering to the L/C Arranger,
with a copy to the Administrative Agent, at their addresses for notices
specified herein, an Application therefor, completed to the satisfaction of the
L/C Arranger, and such other certificates, documents and other papers and
information as the L/C Arranger may request. 
Upon receipt of any Application, the L/C Arranger will, and will cause
such Issuing Lender to, process such Application and the certificates,
documents and other papers and information delivered to it in connection
therewith in accordance with their respective customary procedures, and the L/C
Arranger will promptly cause such Issuing Lender to issue the Letter of Credit
requested thereby by causing the original of such Letter of Credit to be issued
to the beneficiary thereof (or the beneficiary of the Underlying Letter of
Credit, as applicable) or as otherwise may be agreed to by the L/C Arranger,
such Issuing Lender and the Borrower (but in no event shall any Issuing Lender
be required to issue any Letter of Credit earlier than three Business Days
after the L/C Arranger’s receipt of the Application therefor and all such other
certificates, documents and other papers and information relating
thereto).  Promptly after issuance by an
Issuing Lender of a Letter of Credit, the L/C Arranger shall furnish a copy of
such Letter of Credit to the Borrower and the Administrative Agent.  The L/C Arranger shall promptly give notice
to the Administrative Agent of the issuance of each Letter of Credit issued by
such Issuing Lender (including the amount thereof).

3.9.          Fees and Other
Charges.  (a)  The Borrower will pay to Administrative Agent
a fee on the daily aggregate Stated Amount of all outstanding Letters of Credit
(or, without duplication, Underlying Letters of Credit) at a per annum rate
equal to the Applicable Margin then in effect with respect to Eurodollar Loans
under the Revolving Facility, shared

 33
 

ratably
among the Revolving Lenders and payable quarterly in arrears on each L/C Fee
Payment Date after the issuance date.  In
addition, the Borrower shall pay to Administrative Agent for the account of the
L/C Arranger a fronting fee on the aggregated Stated Amount of all Letters of
Credit issued by Issuing Lender calculated at a rate per annum equal to 0.50%,
payable quarterly in arrears on each L/C Fee Payment Date after the issuance
thereof.

(b)           In
addition to the foregoing fees, the Borrower shall pay or reimburse the L/C
Arranger and each Issuing Lender, without duplication, for such normal and
customary commissions, costs, fees and expenses as are incurred or charged by
the Issuing Lender in issuing, negotiating, effecting payment under, amending,
extending or otherwise administering any Letter of Credit.

3.10.        L/C Participations.  (a) 
The L/C Arranger, for itself and the Issuing Lender designated by it,
irrevocably agrees to grant and hereby grants to each L/C Participant, and, to
induce the L/C Arranger to cause the Issuing Lender to issue Letters of Credit
hereunder, each L/C Participant irrevocably agrees to accept and purchase and
hereby accepts and purchases from the L/C Arranger, on the terms and conditions
set forth below, for such L/C Participant’s own account and risk an undivided
interest equal to such L/C Participant’s Pro Rata Share in the L/C Arranger’s
obligations and rights under and in respect of each Letter of Credit issued by
the L/C Arranger’s designated Issuing Lender and the amount of each draft paid
by the Issuing Lender thereunder (which shall include the L/C Arranger’s
obligations to reimburse its designated Issuing Lender for the amount of such
drawing).  Each L/C Participant
unconditionally and irrevocably agrees with the L/C Arranger that, if a draft
is paid under any Letter of Credit for which the L/C Arranger is not reimbursed
in full by the Borrower in accordance with the terms of this Agreement, such
L/C Participant shall pay to the Administrative Agent (for the account of the
L/C Arranger), regardless of the occurrence or continuance of a Default or
Event of Default or the failure to satisfy any of the other conditions
specified in Section 6, upon demand of the L/C Arranger, an amount equal
to such L/C Participant’s Pro Rata Share of the amount of such draft, or any
part thereof, that is not so reimbursed; provided that if the L/C Arranger
makes any such demand after 2:00 P.M. New York City time, payment will be due
on the immediately succeeding business day. 
The Administrative Agent shall promptly forward such amounts to the L/C
Arranger.

(b)           If
any amount required to be paid by any L/C Participant to the L/C Arranger
pursuant to Section 3.10(a) is paid to the Administrative Agent (and the
Administrative Agent shall promptly distribute such amount to the L/C Arranger)
within three Business Days after the date such payment is due, such L/C
Participant shall pay to the Administrative Agent for the account of the L/C
Arranger on demand (and thereafter the Administrative Agent shall promptly pay
to the L/C Arranger) an amount equal to the product of (i) such amount, times
(ii) the daily average Federal Funds Effective Rate during the period from and
including the date such payment is required to the date on which such payment
is immediately available to the L/C Arranger times (iii) a fraction the
numerator of which is the number of days that elapse during such period and the
denominator of which is 360.  If any such
amount required to be paid by any L/C Participant pursuant to Section 3.10(a)
is not made available to the Administrative Agent for the account of the L/C
Arranger by such L/C Participant within three Business Days after the date such
payment is due, the L/C Arranger shall be entitled to recover from such L/C
Participant, on demand, such amount with interest thereon calculated from such
due date at the

 34
 

rate per annum
applicable to Base Rate Loans under the Revolving Facility.  A certificate of the L/C Arranger submitted
to any L/C Participant with respect to any amounts owing under this Section
shall be conclusive in the absence of manifest error.

(c)           Whenever,
at any time after the L/C Arranger or the Issuing Lender designated by it has
made payment under any Letter of Credit and has received from any L/C
Participant its Pro Rata Share of such payment in accordance with Section
3.10(a), the L/C Arranger receives any payment related to such Letter of
Credit (whether directly from the Borrower or otherwise, including proceeds of
collateral applied thereto by the Issuing Lender), or any payment of interest
on account thereof, the L/C Arranger will distribute to the Administrative
Agent for the account of such L/C Participant its Pro Rata Share thereof; provided,
however, that in the event that any such payment received by the L/C
Arranger shall be required to be returned by the L/C Arranger, such L/C
Participant shall return to the Administrative Agent for the account of the L/C
Arranger the portion thereof previously distributed by the Administrative Agent
to it.

3.11.        Reimbursement Obligation
of the Borrower.  The Borrower agrees
to reimburse the L/C Arranger on the date on which the L/C Arranger notifies
the Borrower of the date and amount of a draft presented and paid under any
Letter of Credit for the amount of (a) such draft so paid and (b) any taxes,
fees, charges or other costs or expenses incurred by the L/C Arranger or the
Issuing Lender (without duplication) in connection with such payment, other
than taxes based upon net income and other than taxes payable pursuant to Section
4.10.  Each such payment to be made
by the Borrower shall be made to the Administrative Agent at its address for
notices referred to herein in Dollars and in immediately available funds and
the Administrative Agent shall promptly distribute such payment to the L/C
Arranger.  Interest shall be payable on
any and all such amounts remaining unpaid by the Borrower from the date on
which the relevant draft is paid until payment in full or conversion as set
forth below, at the rate set forth in (i) until the Business Day next
succeeding the date of the relevant notice, Section 4.5(b) and (ii)
thereafter, Section 4.5(c).  Each
drawing under any Letter of Credit shall (unless an event of the type described
in clause (i) or (ii) of Section 9(f) shall have occurred and be
continuing with respect to the Borrower, in which case the procedures specified
in Section 3.10 for funding by L/C Participants shall apply) constitute
a request by the Borrower to the Administrative Agent for a borrowing pursuant
to Section 3.2 of Base Rate Loans (or, at the option of the
Administrative Agent, a borrowing of Swingline Loans pursuant to Section 3.4)
in the amount of such drawing.  The
Borrowing Date with respect to such borrowing shall be the first date on which
a borrowing of Revolving Loans (or, if applicable, Swingline Loans) could be
made, pursuant to Section 3.2 (or, if applicable, Section 3.4),
if the Administrative Agent had received a notice of such borrowing at the time
the Administrative Agent receives notice from the Issuing Lender of such
drawing under such Letter of Credit.

3.12.        Obligations Absolute.  The Borrower’s obligations under Section
3.11 shall be absolute and unconditional under any and all circumstances
and irrespective of any setoff, counterclaim or defense to payment that the
Borrower may have or have had against the L/C Arranger or the Issuing Lender,
any beneficiary of a Letter of Credit or any other Person.  The Borrower also agrees with the L/C
Arranger and each Issuing Lender that the L/C Arranger and the Issuing Lenders
shall not be responsible for, and the Borrower’s Reimbursement Obligations
under Section 3.11 shall not be affected by, among other things, the
validity or

 35
 

genuineness
of documents or of any endorsements thereon, even though such documents shall
in fact prove to be invalid, fraudulent or forged, or any dispute between or
among the Borrower and any beneficiary of any Letter of Credit or any other
party to which such Letter of Credit may be transferred or any claims
whatsoever of the Borrower against any beneficiary of such Letter of Credit or
any such transferee.  Neither the L/C
Arranger nor any Issuing Lender shall be liable for any error, omission,
interruption or delay in transmission, dispatch or delivery of any message or
advise, however transmitted, in connection with any Letter of Credit, except
that the L/C Arranger shall be liable to the extent provided by law for errors
and omissions found by a final and nonappealable decision of a court of
competent jurisdiction to have resulted from its gross negligence or willful
misconduct.  The Borrower agrees that any
action taken or omitted by the L/C Arranger or an Issuing Lender under or in
connection with any Letter of Credit or the related drafts or documents, if
done in the absence of gross negligence or willful misconduct and in accordance
with the standards of care specified in the Uniform Commercial Code of the
State of New York, shall be binding on the Borrower and shall not result in any
liability of the L/C Arranger or any Issuing Lender to the Borrower.  Issuing Lender shall not have any liability
to the Borrower, the Administrative Agent or the Lenders in respect of any
Letters of Credit issued by it or any Letters of Credit requested to be issued
by it, nor shall the Issuing Lender owe any duty to any Person, or be deemed to
have agreed, to issue any Letters of Credit (it being understood that the
Issuing Lender shall issue Letters of Credit, if at all, pursuant to separate
contractual arrangements with, and solely for the benefit of, the L/C Arranger
and any duties, obligations or liabilities of the Issuing Lender shall be only
those set forth in such separate contractual arrangements).

3.13.        Letter of Credit
Payments.  If any draft shall be
presented for payment under any Letter of Credit, the L/C Arranger shall
promptly notify the Administrative Agent and Borrower of the date and amount
thereof.  The responsibility of the L/C
Arranger and any Issuing Lender to the Borrower in connection with any draft
presented for payment under any Letter of Credit shall, in addition to any
payment obligation expressly provided for in such Letter of Credit, be limited
to determining that the documents (including each draft) delivered under such
Letter of Credit in connection with such presentment are substantially in
conformity with such Letter of Credit.

3.14.        Applications.  To the extent that any provision of any
Application related to any Letter of Credit is inconsistent with the provisions
of this Section 3, or Sections 5, 6, 7, 8 or 9, as applicable, the provisions
of this Section 3, or Sections 5, 6, 7, 8 or 9, as applicable, shall apply.

Section 4.    GENERAL PROVISIONS
APPLICABLE TO LOANS AND LETTERS OF CREDIT

4.1.          Optional Prepayments.  The Borrower may at any time and from time to
time prepay the Loans, in whole or in part, without premium or penalty.  In connection with any such prepayment of the
Term Loans or Incremental Term Loans, Borrower shall give irrevocable notice
delivered to the Administrative Agent no later than 12:00 noon, New York City
time, three Business Days prior thereto, in the case of Eurodollar Loans, and
no later than 12:00 noon, New York City time, one Business Day prior thereto,
in the case of Base Rate Loans, which notice shall specify the date and amount
of prepayment and whether the prepayment is of

 36
 

Eurodollar
Loans or Base Rate Loans; provided that, if a Eurodollar Loan is prepaid
on any day other than the last day of the Interest Period applicable thereto,
the Borrower shall also pay any amounts owing pursuant to Section 4.11.  Upon receipt of any such notice the
Administrative Agent shall promptly notify each relevant Lender thereof.  If any such notice is given, the amount
specified in such notice shall be due and payable on the date specified
therein, together with (except in the case of Revolving Loans that are Base
Rate Loans or Swingline Loans) accrued interest to such date on the amount
prepaid.  Partial prepayments of Term
Loans, Incremental Term Loans, Revolving Loans and Swingline Loans shall be in
an aggregate principal amount of $1,000,000 or a whole multiple thereof, or if
less, the remaining principal amount thereof.

4.2.          Mandatory Prepayments
and Commitment Reductions.  (a)  If any Capital Stock shall be issued by any
Group Member (other than (i) any Capital Stock issued to any Group Member
or the Permitted Investors or (ii) any Replacement Equity), or any capital
contribution is made to any Group Member (other than a capital contribution by
any Group Member or the Permitted Investors), an amount equal to 50% of the Net
Cash Proceeds thereof shall be applied on the date of receipt of such Net Cash
Proceeds toward the prepayment of the Term Loans and Incremental Term Loans as
set forth in Section 4.2(e); provided, that, if (a) the
Consolidated Leverage Ratio is equal to or less than 2.00:1.00 at the time of
such issuance or capital contribution and immediately after giving effect
thereto and (b) no Default or Event of Default shall have occurred and be
continuing or would result therefrom, then no such prepayment shall be
required.

(b)           If
any Indebtedness shall be incurred by any Group Member (other than Excluded
Indebtedness), an amount equal to 100% of the Net Cash Proceeds thereof shall
be applied on the date of such incurrence toward the prepayment of the Term
Loans and Incremental Term Loans as set forth in Section 4.2(e).

(c)           If
on any date any Group Member shall receive Net Cash Proceeds from any Asset
Sale or Recovery Event then, unless a Reinvestment Notice shall be delivered in
respect thereof, such Net Cash Proceeds shall be applied on such date toward
the prepayment of the Term Loans and Incremental Term Loans as set forth in Section 4.2(e);
provided, that, notwithstanding the foregoing, on each Reinvestment
Prepayment Date, an amount equal to the Reinvestment Prepayment Amount with
respect to the relevant Reinvestment Event shall be applied toward the
prepayment of the Term Loans and Incremental Term Loans as set forth in Section 4.2(e).

(d)           If,
for any fiscal year of the Borrower commencing with the fiscal year ending
December 31, 2007, there shall be Excess Cash Flow, the Borrower shall, on the
relevant Excess Cash Flow Application Date, apply the ECF Percentage of such
Excess Cash Flow toward the prepayment of the Term Loans and Incremental Term Loans
as set forth in Section 4.2(e); provided that any required
prepayment pursuant to this Section 4.2(d) will be reduced to the
extent necessary so that, after giving effect to the prepayment (if any)
required under this Section 4.2(d), the aggregate amount of cash
and Cash Equivalents of the Borrower and its Subsidiaries (other than any such
cash or Cash Equivalents which are subject to a Lien permitted under Section 8.3
or constitute “restricted cash” in accordance with GAAP) as of the last day of
the relevant fiscal year will not be less than $5,000,000.  Each such prepayment shall

 37
 

be made on a
date (an “Excess Cash Flow Application Date”) no later than five days
after the earlier of (i) the date on which the financial statements of the
Borrower referred to in Section 7.1(a), for the fiscal year with
respect to which such prepayment is made, are required to be delivered to the
Lenders and (ii) the date such financial statements are actually delivered.

(e)           If
at any time, the aggregate outstanding amount of Consolidated Total Debt
exceeds the Consolidated Total Debt Limiter, Borrower shall within five (5)
Business Days after the occurrence thereof, make a prepayment of the Revolving
Loans, Swingline Loans, Term Loans and the Incremental Term Loans to the extent
of such excess.

(f)            Amounts
to be applied in connection with prepayments and Commitment reductions made
pursuant to Section 4.2 shall be applied ratably to the prepayment of the Term
Loans and Incremental Term Loans.  The
application of any prepayment pursuant to Section 4.2 shall be
made, first, to Base Rate Loans and, second, to Eurodollar
Loans.  Each prepayment of the Loans
under Section 4.2 shall be accompanied by accrued interest to the
date of such prepayment on the amount prepaid.

4.3.          Conversion and
Continuation Options.  (a)  The Borrower may elect from time to time to
convert Eurodollar Loans to Base Rate Loans by giving the Administrative Agent
prior irrevocable notice of such election no later than 11:00 A.M., New York
City time, on the Business Day preceding the proposed conversion date, provided
that any such conversion of Eurodollar Loans may only be made on the last day
of an Interest Period with respect thereto. 
The Borrower may elect from time to time to convert Base Rate Loans to Eurodollar
Loans by giving the Administrative Agent prior irrevocable notice of such
election no later than 11:00 A.M., New York City time, on the third Business
Day preceding the proposed conversion date (which notice shall specify the
length of the initial Interest Period therefor), provided that no Base
Rate Loan under a particular Facility may be converted into a Eurodollar Loan
when any Event of Default has occurred and is continuing and the Administrative
Agent or the Majority Facility Lenders in respect of such Facility have
determined in its or their sole discretion not to permit such conversions.  Upon receipt of any such notice the
Administrative Agent shall promptly notify each relevant Lender thereof.

(b)           Any
Eurodollar Loan may be continued as such upon the expiration of the then
current Interest Period with respect thereto by the Borrower giving irrevocable
notice to the Administrative Agent, in accordance with the applicable
provisions of the term “Interest Period” set forth in Section 1.1, of the
length of the next Interest Period to be applicable to such Loans, provided
that no Eurodollar Loan under a particular Facility may be continued as such
when any Event of Default has occurred and is continuing and the Administrative
Agent has or the Majority Facility Lenders in respect of such Facility have
determined in its or their sole discretion not to permit such continuations,
and provided, further, that if the Borrower shall fail to give
any required notice as described above in this paragraph or if such
continuation is not permitted pursuant to the preceding proviso such Loans
shall be automatically converted to Base Rate Loans on the last day of such
then expiring Interest Period.  Upon
receipt of any such notice the Administrative Agent shall promptly notify each
relevant Lender thereof.

4.4.          Limitations on
Eurodollar Tranches.  Notwithstanding
anything to the contrary in this Agreement, all borrowings, conversions and
continuations of Eurodollar Loans

 38
 

hereunder
and all selections of Interest Periods hereunder shall be in such amounts and
be made pursuant to such elections so that, (a) after giving effect thereto,
the aggregate principal amount of the Eurodollar Loans comprising each
Eurodollar Tranche shall be equal to $1,000,000 or a whole multiple of $250,000
in excess thereof and (b) no more than eight Eurodollar Tranches shall be
outstanding at any one time.

4.5.          Interest Rates and
Payment Dates.  (a)  Each Eurodollar Loan shall bear interest for
each day during each Interest Period with respect thereto at a rate per annum
equal to the Eurodollar Rate determined for such day plus the Applicable
Margin.

(b)           Each
Base Rate Loan shall bear interest at a rate per annum equal to the Base Rate plus
the Applicable Margin.

(c)           (i)  If all or a portion of the principal amount
of any Loan or Reimbursement Obligation shall not be paid when due (whether at
the stated maturity, by acceleration or otherwise), such overdue amount shall
bear interest at a rate per annum equal to (x) in the case of the Loans, the
rate that would otherwise be applicable thereto pursuant to the foregoing
provisions of this Section plus 2% or (y) in the case of Reimbursement
Obligations, the rate applicable to Base Rate Loans under the Revolving
Facility plus 2%, and (ii) if all or a portion of any interest payable
on any Loan or Reimbursement Obligation or any commitment fee or other amount
payable hereunder shall not be paid when due (whether at the stated maturity,
by acceleration or otherwise), such overdue amount shall bear interest at a
rate per annum equal to the rate then applicable to Base Rate Loans under the
relevant Facility plus 2% (or, in the case of any such other amounts
that do not relate to a particular Facility, the rate then applicable to Base
Rate Loans under the Revolving Facility plus 2%), in each case, with
respect to clauses (i) and (ii) above, from the date of such non–payment until
such amount is paid in full (as well after as before judgment).

(d)           Interest
shall be payable in arrears on each Interest Payment Date, provided that
interest accruing pursuant to paragraph (c) of this Section shall be payable
from time to time on demand.

(e)           Reimbursement
Obligations shall bear interest pursuant to Section 3.11.

(f)            In
the event that the information contained in any financial statement or most
recent Consolidated Leverage Ratio calculation delivered to Administrative
Agent pursuant to this Agreement is shown to be inaccurate, and such
inaccuracy, if corrected, would have led to the application of a higher Applicable
Margin for any period (an “Applicable Period”) than the Applicable
Margin actually applied for such Applicable Period, then (i) after any
Responsible Officer shall have knowledge thereof, Borrower shall immediately
deliver to the Administrative Agent a correct certificate for such Applicable
Period, (ii) the Applicable Margins shall be determined as if the Level that
would have been applicable to such Applicable Period but for such inaccuracy
(as set forth in the table set forth in the definition of Applicable Margin)
were applicable for such Applicable Period, and (iii) Borrower shall
immediately deliver to the Administrative Agent full payment in respect of the
accrued additional interest on the Obligations as a result of such increased
Applicable Margins for such Applicable Period, which payment shall be promptly
applied by the Administrative Agent to the affected Obligations.

 39
 

4.6.          Computation of
Interest and Fees.  (a)  Interest and fees payable pursuant hereto
shall be calculated on the basis of a 360-day year for the actual days
elapsed.  The Administrative Agent shall
as soon as practicable notify the Borrower and the relevant Lenders of each
determination of a Eurodollar Rate.  Any
change in the interest rate on a Loan resulting from a change in the Base Rate
or the Eurocurrency Reserve Requirements shall become effective as of the
opening of business on the day on which such change becomes effective.  The Administrative Agent shall as soon as
practicable notify the Borrower and the relevant Lenders of the effective date
and the amount of each such change in interest rate.

(b)           Each
determination of an interest rate by the Administrative Agent pursuant to any
provision of this Agreement shall be conclusive and binding on the Borrower and
the Lenders in the absence of manifest error. 
The Administrative Agent shall, at the request of the Borrower, deliver
to the Borrower a statement showing the quotations used by the Administrative
Agent in determining any interest rate pursuant to Section 4.5(a).

4.7.          Inability to
Determine Interest Rate.  If prior to
the first day of any Interest Period:

(a)           the Administrative
Agent shall have determined (which determination shall be conclusive and
binding upon the Borrower) that, by reason of circumstances affecting the
relevant market, adequate and reasonable means do not exist for ascertaining
the Eurodollar Rate for such Interest Period, or

(b)           the Administrative
Agent shall have received notice from the Majority Facility Lenders in respect
of the relevant Facility that the Eurodollar Rate determined or to be
determined for such Interest Period will not adequately and fairly reflect the
cost to such Lenders (as conclusively certified by such Lenders) of making or
maintaining their affected Loans during such Interest Period,

the Administrative Agent shall give telecopy or
telephonic notice thereof to the Borrower and the relevant Lenders as soon as
practicable thereafter.  If such notice
is given (x) any Eurodollar Loans under the relevant Facility requested to be
made on the first day of such Interest Period shall be made as Base Rate Loans,
(y) any Loans under the relevant Facility that were to have been converted on
the first day of such Interest Period to Eurodollar Loans shall be continued as
Base Rate Loans and (z) any outstanding Eurodollar Loans under the relevant
Facility shall be converted, on the last day of the then-current Interest
Period, to Base Rate Loans.  Until such
notice has been withdrawn by the Administrative Agent, no further Eurodollar
Loans under the relevant Facility shall be made or continued as such, nor shall
the Borrower have the right to convert Loans under the relevant Facility to
Eurodollar Loans.

4.8.          Apportionment and
Application.  (a)  Each borrowing by the Borrower from the
Lenders hereunder, each payment by the Borrower on account of any commitment
fee and any reduction of the Commitments of the Lenders shall be made pro rata
according to the respective Pro Rata Shares of the relevant Lenders, with
respect to the relevant Facility.  So long
as no Application Event has occurred and is continuing and except as otherwise
provided with respect to Defaulting Lenders: 
(i) each payment (including each prepayment) by the Borrower on account
of principal of and interest on the Term Loans shall be made pro rata according
to the

 40
 

respective
outstanding principal amounts of the Term Loans then held by the Term Lenders,
(ii) the amount of each principal prepayment of the Term Loans shall be applied
to reduce the then remaining installments of the Term Loans, pro rata based
upon the then remaining principal amount thereof; provided, that if no
Event of Default has occurred and is continuing, any prepayments made to the
Term Loans pursuant to Section 4.1 may be applied, at the Borrower’s
option, to the next succeeding installment or installments of the Term Loans
due within twelve months after such prepayment is made, (iii) each payment
(including each prepayment) by the Borrower on account of principal of and
interest on the Incremental Term Loans shall be made pro rata according to the
respective outstanding principal amounts of the Incremental Term Loans then
held by the Incremental Term Lenders, and (iv) the amount of each principal
prepayment of the Incremental Term Loans shall be applied to reduce the then
remaining installments of the Incremental Term Loans, pro rata based upon the
then remaining principal amount thereof; provided, that if no Event of Default
has occurred and is continuing, any prepayments made to the Incremental Term
Loans pursuant to Section 4.1 may be applied, at the Borrower’s
option, to the next succeeding installment or installments of the Incremental
Term Loans due within twelve months after such prepayment is made.

(b)           At
any time that an Application Event has occurred and is continuing and except as
otherwise provided with respect to Defaulting Lenders, all payments remitted to
Administrative Agent and all proceeds of Collateral received by Administrative
Agent shall be applied as follows:

(i)            first, to pay any
Lender Group Expenses (including cost or expense reimbursements) or indemnities
then due to Administrative Agent under the Loan Documents, until paid in full,

(ii)           second, to pay any
fees or premiums then due to Administrative Agent under the Loan Documents
until paid in full,

(iii)          third, ratably to
pay any Lender Group Expenses (including cost or expense reimbursements) or
indemnities then due to any of the Lenders under the Loan Documents, until paid
in full,

(iv)          fourth, ratably to
pay any fees or premiums then due to any of the Lenders under the Loan
Documents until paid in full,

(v)           fifth, ratably to
pay interest due in respect of the Revolving Loans, the Swingline Loans, the
Term Loan and the Incremental Term Loan until paid in full,

(vi)          sixth, ratably (A)
to pay the principal of all Swingline Loans until paid in full, (B) to pay the
principal of all Revolving Loans until paid in full, (C) to Administrative
Agent, to be held by Administrative Agent, for the ratable benefit of Issuing
Lender and those Lenders having a Revolving Commitment, as cash collateral in
an amount up to 105% of the aggregate Stated Amount outstanding Letters of
Credit, (D) to pay the outstanding principal balance of the Term Loan (in the
inverse order of the maturity of the installments due thereunder) until the

 41
 

Term
Loan is paid in full and (E) to pay the outstanding principal balance of the
Incremental Term Loan (in the inverse order of the maturity of the installments
due thereunder) until the Incremental Term Loan is paid in full,

(vii)         seventh, to pay any
other Obligations that are then due and owing, and

(viii)        eighth, to Borrower
or such other Person entitled thereto under applicable law.

(c)           In
each instance, so long as no Application Event has occurred and is continuing, Section
4.8(a) shall not apply to any payment made by Borrower to Administrative
Agent and specified by Borrower to be for the payment of specific Obligations
then due and payable (or prepayable) under any provision of this Agreement.

(d)           For
purposes of Section 4.8(b), “paid in full” means payment of all amounts
owing under the Loan Documents according to the terms thereof (other than
unasserted contingent indemnification Obligations), including loan fees,
service fees, professional fees, interest (and specifically including interest
accrued after the commencement of any Insolvency Proceeding), default interest,
interest on interest, and expense reimbursements and indemnities, whether or
not any of the foregoing would be or is allowed or disallowed in whole or in
part in any Insolvency Proceeding.

(e)           All
payments (including prepayments) to be made by the Borrower hereunder, whether
on account of principal, interest, fees or otherwise, shall be made without
setoff or counterclaim and shall be made prior to 1:00 P.M., New York City
time, on the due date thereof to the Administrative Agent, for the account of
the Lenders, at the Funding Office, in Dollars and in immediately available
funds.  The Administrative Agent shall
distribute such payments to the Lenders promptly upon receipt in like funds as
received.  If any payment hereunder
(other than payments on the Eurodollar Loans) becomes due and payable on a day
other than a Business Day, such payment shall be extended to the next succeeding
Business Day.  If any payment on a
Eurodollar Loan becomes due and payable on a day other than a Business Day, the
maturity thereof shall be extended to the next succeeding Business Day unless
the result of such extension would be to extend such payment into another
calendar month, in which event such payment shall be made on the immediately
preceding Business Day.  In the case of
any extension of any payment of principal pursuant to the preceding two
sentences, interest thereon shall be payable at the then applicable rate during
such extension.

(f)            Unless
the Administrative Agent shall have been notified in writing by any Lender
prior to a borrowing that such Lender will not make the amount that would
constitute its share of such borrowing available to the Administrative Agent,
the Administrative Agent may assume that such Lender is making such amount
available to the Administrative Agent, and the Administrative Agent may, in
reliance upon such assumption, make available to the Borrower a corresponding
amount.  If such amount is not made available
to the Administrative Agent by the required time on the Borrowing Date
therefor, such Lender shall pay to the Administrative Agent, on demand, such
amount with interest thereon at a rate equal to the greater of (i) the

 42
 

Federal Funds
Effective Rate and (ii) a rate determined by the Administrative Agent in
accordance with banking industry rules on interbank compensation for the period
until such Lender makes such amount immediately available to the Administrative
Agent.  A certificate of the Administrative
Agent submitted to any Lender with respect to any amounts owing under this
paragraph shall be conclusive in the absence of manifest error.  If such Lender’s share of such borrowing is
not made available to the Administrative Agent by such Lender within three
Business Days of such Borrowing Date, the Administrative Agent shall also be
entitled to recover such amount with interest thereon at the rate per annum
applicable to Base Rate Loans under the relevant Facility, on demand, from the
Borrower.

(g)           If
at any time the Borrower shall be required to make any payment under any Loan
Document to or for the account of a Defaulting Lender, then the Borrower, so
long as it is then permitted to borrow Revolving Loans hereunder, may set off
and otherwise apply its obligation to make such payment against the obligation
of such Defaulting Lender to make such defaulted Revolving Loan.  In such event, the amount so set off and
otherwise applied shall be deemed to constitute a Revolving Loan, Term Loan, or
Incremental Term Loan by such Defaulting Lender made on the date of such set-off
and included within any borrowing of Revolving Loans, Term Loans, and
Incremental Term Loans, as applicable, as the Administrative Agent may
reasonably determine.

(h)           Unless
the Administrative Agent shall have been notified in writing by the Borrower
prior to the date of any payment due to be made by the Borrower hereunder that
the Borrower will not make such payment to the Administrative Agent, the
Administrative Agent may assume that the Borrower is making such payment, and
the Administrative Agent may, but shall not be required to, in reliance upon
such assumption, make available to the Lenders their respective Pro Rata Shares
of a corresponding amount.  If such
payment is not made to the Administrative Agent by the Borrower within three
Business Days after such due date, the Administrative Agent shall be entitled
to recover, on demand, from each Lender to which any amount which was made
available pursuant to the preceding sentence, such amount with interest thereon
at the rate per annum equal to the daily average Federal Funds Effective
Rate.  Nothing herein shall be deemed to
limit the rights of the Administrative Agent or any Lender against the Borrower.

(i)            In
the event of a direct conflict between the priority provisions of this Section 4.8
and any other provision contained in any other Loan Document, it is the
intention of the parties hereto that such provisions be read together and
construed, to the fullest extent possible, to be in concert with each
other.  In the event of any actual,
irreconcilable conflict that cannot be resolved as aforesaid, the terms and
provisions of this Section 4.8 shall control and govern.

4.9.          Requirements of Law.  (a)  If
the adoption of or any change in any Requirement of Law or in the
interpretation or application thereof or compliance by any Lender with any
request or directive (whether or not having the force of law) from any central
bank or other Governmental Authority made subsequent to the date hereof:

(i)            shall
subject any Lender to any tax of any kind whatsoever with respect to this
Agreement, any Letter of Credit (or Underlying Letter of Credit),

 43
 

any Application or any Eurodollar Loan made by it, or change the basis
of taxation of payments to such Lender in respect thereof (except for Non-Excluded
Taxes covered by Section 4.10 and except for any tax on the overall net income
of such Lender);

(ii)           shall
impose, modify or hold applicable any reserve, special deposit, compulsory loan
or similar requirement against assets held by, deposits or other liabilities in
or for the account of, advances, loans or other extensions of credit by, or any
other acquisition of funds by, any office of such Lender that is not otherwise
included in the determination of the Eurodollar Rate hereunder; or

(iii)          shall impose on such Lender any other
condition (except for Non-Excluded Taxes covered by Section 4.10 and changes in
the rate of tax on the overall net income of such Lender);

and the result of any of the foregoing is to increase
the cost to such Lender, by an amount that such Lender deems to be material, of
making, converting into, continuing or maintaining Eurodollar Loans or issuing,
causing the issuance of, or participating in Letters of Credit, or to reduce any
amount receivable hereunder in respect thereof, then, in any such case, the
Borrower shall promptly pay such Lender, upon its demand, any additional
amounts necessary to compensate such Lender for such increased cost or reduced
amount receivable.  If any Lender becomes
entitled to claim any additional amounts pursuant to this paragraph, it shall
promptly notify the Borrower (with a copy to the Administrative Agent) of the
event by reason of which it has become so entitled.

(b)           If
any Lender shall have determined that the adoption of or any change in any
Requirement of Law regarding capital adequacy or in the interpretation or
application thereof or compliance by such Lender or any corporation controlling
such Lender with any request or directive regarding capital adequacy (whether
or not having the force of law) from any Governmental Authority made subsequent
to the date hereof shall have the effect of reducing the rate of return on such
Lender’s or such corporation’s capital as a consequence of its obligations
hereunder or under or in respect of any Letter of Credit (or Underlying Letter
of Credit) to a level below that which such Lender or such corporation could
have achieved but for such adoption, change or compliance (taking into
consideration such Lender’s or such corporation’s policies with respect to
capital adequacy) by an amount deemed by such Lender to be material, then from
time to time, after submission by such Lender to the Borrower (with a copy to
the Administrative Agent) of a written request therefor, the Borrower shall pay
to such Lender such additional amount or amounts as will compensate such Lender
or such corporation for such reduction.

(c)           A
Lender shall be required to submit a certificate as to any additional amounts
payable pursuant to this Section, and any such certificate submitted by any
Lender to the Borrower (with a copy to the Administrative Agent) shall be
conclusive in the absence of manifest error. 
Notwithstanding anything to the contrary in this Section, the Borrower
shall not be required to compensate a Lender pursuant to this Section for any
amounts incurred more than six months prior to the date that such Lender
notifies the Borrower of such Lender’s intention to claim compensation
therefor; provided that, if the circumstances giving rise to such claim
have a retroactive effect, then such six-month period shall be extended to
include the period of such

 44
 

retroactive
effect.  The obligations of the Borrower
pursuant to this Section shall survive the termination of this Agreement and
the payment of the Loans and all other amounts payable hereunder.

4.10.        Taxes.  (a) 
All payments made by the Borrower under this Agreement shall be made
free and clear of, and without deduction or withholding for or on account of,
any present or future income, stamp or other taxes, levies, imposts, duties,
charges, fees, deductions or withholdings, now or hereafter imposed, levied,
collected, withheld or assessed by any Governmental Authority, excluding net
income taxes and franchise taxes (imposed in lieu of net income taxes) imposed
on Administrative Agent or any Lender as a result of a present or former
connection between Administrative Agent or such Lender and the jurisdiction of
the Governmental Authority imposing such tax or any political subdivision or
taxing authority thereof or therein (other than any such connection arising
solely from Administrative Agent or such Lender having executed, delivered or
performed its obligations or received a payment under, or enforced, this
Agreement or any other Loan Document). 
If any such non-excluded taxes, levies, imposts, duties, charges, fees,
deductions or withholdings (“Non-Excluded Taxes”) or Other Taxes are
required to be withheld from any amounts payable to Administrative Agent or any
Lender hereunder, the amounts so payable to Administrative Agent or such Lender
shall be increased to the extent necessary to yield to Administrative Agent or
such Lender (after payment of all Non-Excluded Taxes and Other Taxes) interest
or any such other amounts payable hereunder at the rates or in the amounts
specified in this Agreement, provided, however, that the Borrower
shall not be required to increase any such amounts payable to any Lender with
respect to any Non-Excluded Taxes (i) that are attributable to such Lender’s
failure to comply with the requirements of paragraph (d) or (e) of this Section
or (ii) that are United States withholding taxes imposed on amounts payable to
such Lender at the time such Lender becomes a party to this Agreement, except
to the extent that such Lender’s assignor (if any) was entitled, at the time of
assignment, to receive additional amounts from the Borrower with respect to
such Non-Excluded Taxes pursuant to this paragraph.

(b)           In
addition, the Borrower shall pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law.

(c)           Whenever
any Non-Excluded Taxes or Other Taxes are payable by the Borrower, as promptly
as possible thereafter the Borrower shall send to the Administrative Agent for
its own account or for the account of the relevant Agent or Lender, as the case
may be, a certified copy of an original official receipt received by the
Borrower showing payment thereof.  If the
Borrower fails to pay any Non-Excluded Taxes or Other Taxes when due to the appropriate
taxing authority or fails to remit to the Administrative Agent the required
receipts or other required documentary evidence, the Borrower shall indemnify
the Administrative Agent and the Lenders for any incremental taxes, interest or
penalties that may become payable by Administrative Agent or any Lender as a
result of any such failure.

(d)           Each
Lender (or Transferee) that is not a “U.S. Person” as defined in Section
7701(a)(30) of the Code (a “Non–U.S. Lender”) shall deliver to the
Borrower and the Administrative Agent (or, in the case of a Participant, to the
Lender from which the related participation shall have been purchased) two
copies of either U.S. Internal Revenue Service Form W-8BEN or Form W-8ECI, or,
in the case of a Non–U.S. Lender claiming exemption from

 45
 

U.S. federal
withholding tax under Section 871(h) or 881(c) of the Code with respect to
payments of “portfolio interest”, a statement substantially in the form of
Exhibit F and a Form W-8BEN, or any subsequent versions thereof or successors
thereto, properly completed and duly executed by such Non–U.S. Lender claiming
complete exemption from, or a reduced rate of, U.S. federal withholding tax on
all payments by the Borrower under this Agreement and the other Loan
Documents.  Such forms shall be delivered
by each Non–U.S. Lender on or before the date it becomes a party to this
Agreement (or, in the case of any Participant, on or before the date such
Participant purchases the related participation).  In addition, each Non–U.S. Lender shall
deliver such forms promptly upon the obsolescence or invalidity of any form
previously delivered by such Non–U.S. Lender. 
Each Non-U.S. Lender shall promptly notify the Borrower at any time it
determines that it is no longer in a position to provide any previously
delivered certificate to the Borrower (or any other form of certification
adopted by the U.S. taxing authorities for such purpose).  Notwithstanding any other provision of this
paragraph, a Non–U.S. Lender shall not be required to deliver any form pursuant
to this paragraph that such Non–U.S. Lender is not legally able to deliver.

(e)           A
Lender that is entitled to an exemption from or reduction of non-U.S.
withholding tax under the law of the jurisdiction in which the Borrower is
located, or any treaty to which such jurisdiction is a party, with respect to
payments under this Agreement shall deliver to the Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by applicable law or
reasonably requested by the Borrower, such properly completed and executed
documentation prescribed by applicable law as will permit such payments to be
made without withholding or at a reduced rate, provided that such Lender
is legally entitled to complete, execute and deliver such documentation and in
such Lender’s judgment such completion, execution or submission would not
materially prejudice the legal position of such Lender.

(f)            The
agreements in this Section shall survive the termination of this Agreement and
the payment of the Loans and all other amounts payable hereunder.

4.11.        Indemnity.  The Borrower agrees to indemnify each Lender
and to hold each Lender harmless from any loss or expense that such Lender may
sustain or incur as a consequence of (a) default by the Borrower in making a
borrowing of, conversion into or continuation of Eurodollar Loans after the
Borrower has given a notice requesting the same in accordance with the
provisions of this Agreement, (b) default by the Borrower in making any
prepayment of or conversion from Eurodollar Loans after the Borrower has given
a notice thereof in accordance with the provisions of this Agreement or (c) the
making of a prepayment of Eurodollar Loans on a day that is not the last day of
an Interest Period with respect thereto. 
Such indemnification may include an amount equal to the excess, if any,
of (i) the amount of interest that would have accrued on the amount so prepaid,
or not so borrowed, converted or continued, for the period from the date of
such prepayment or of such failure to borrow, convert or continue to the last
day of such Interest Period (or, in the case of a failure to borrow, convert or
continue, the Interest Period that would have commenced on the date of such
failure) in each case at the applicable rate of interest for such Loans
provided for herein (excluding, however, the Applicable Margin included
therein, if any) over (ii) the amount of interest (as reasonably determined by
such Lender) that would have accrued to such Lender on such amount by placing
such amount on deposit for a comparable period with leading banks in the
interbank eurodollar market.  A Lender
must provide a certificate as to any amounts payable pursuant to this Section,

 46
 

and
any such certificate submitted to the Borrower by any Lender shall be conclusive
in the absence of manifest error.  This
covenant shall survive the termination of this Agreement and the payment of the
Loans and all other amounts payable hereunder.

4.12.        Change of Lending
Office.  Each Lender agrees that,
upon the occurrence of any event giving rise to the operation of Section 4.9 or
4.10(a) with respect to such Lender, it will, if requested by the Borrower, use
reasonable efforts (subject to overall policy considerations of such Lender) to
designate another lending office for any Loans affected by such event with the
object of avoiding the consequences of such event; provided, that no
such designation shall be required unless such designation can be made on terms
that, in the sole judgment of such Lender, cause such Lender and its lending
office(s) to suffer no economic, legal or regulatory disadvantage, and provided,
further, that nothing in this Section shall affect or postpone any of
the obligations of the Borrower or the rights of any Lender pursuant to Section
4.9 or 4.10(a).

4.13.        Replacement of Lenders.  The Borrower shall be permitted to replace
any Lender that (a) requests reimbursement for amounts owing pursuant to
Section 4.9 or 4.10(a) or (b) defaults in its obligation to make Loans
hereunder (a “Defaulting Lender”), with a replacement financial
institution; provided that (i) such replacement does not conflict with
any Requirement of Law, (ii) no Event of Default shall have occurred and be
continuing at the time of such replacement, (iii) prior to any such
replacement, such Lender shall have failed to take the actions required to be
taken by such Lender under Section 4.12 so as to eliminate the continued need
for payment of amounts owing pursuant to Section 4.9 or 4.10(a), (iv) the
replacement financial institution shall purchase, at par, all Loans and other
amounts owing to such replaced Lender on or prior to the date of replacement,
(v) the Borrower shall be liable to such replaced Lender under Section 4.11 if
any Eurodollar Loan owing to such replaced Lender shall be purchased other than
on the last day of the Interest Period relating thereto, (vi) the replacement
financial institution, if not already a Lender, shall be reasonably
satisfactory to the Administrative Agent, (vii) the replaced Lender shall be
obligated to make such replacement in accordance with the provisions of Section
11.6 (provided that the Borrower shall be obligated to pay the
registration and processing fee referred to therein), (viii) until such time as
such replacement shall be consummated, the Borrower shall pay all additional
amounts (if any) required pursuant to Section 4.9 or 4.10(a), as the case may
be, and (ix) any such replacement shall not be deemed to be a waiver of any
rights that the Borrower, the Administrative Agent or any other Lender shall
have against the replaced Lender.

4.14.        Evidence of Debt.  (a) 
Each Lender shall maintain in accordance with its usual practice an
account or accounts evidencing indebtedness of the Borrower to such Lender
resulting from each Loan of such Lender from time to time, including the
amounts of principal and interest payable and paid to such Lender from time to
time under this Agreement.

(b)           The
Administrative Agent, on behalf of the Borrower, shall maintain the Register
pursuant to Section 11.6(b), and a subaccount therein for each Lender, in which
shall be recorded (i) the amount of each Loan made hereunder and any Note
evidencing such Loan, the Type of such Loan and each Interest Period applicable
thereto, (ii) the amount of any principal or interest due and payable or to
become due and payable from the Borrower to each Lender

 47

hereunder and
(iii) both the amount of any sum received by the Administrative Agent hereunder
from the Borrower and each Lender’s share thereof.

(c)           The
entries made in the Register and the accounts of each Lender maintained
pursuant to Section 4.14(a) shall, to the extent permitted by applicable law,
be prima  facie evidence of the existence and amounts of the
obligations of the Borrower therein recorded; provided, however,
that the failure of any Lender or the Administrative Agent to maintain the
Register or any such account, or any error therein, shall not in any manner
affect the obligation of the Borrower to repay (with applicable interest) the
Loans made to the Borrower by such Lender in accordance with the terms of this
Agreement.

(d)           The
Borrower agrees that, upon the request to the Administrative Agent by any
Lender, the Borrower will execute and deliver to such Lender a promissory note
of the Borrower evidencing any Term Loans (or Incremental Term Loans),
Revolving Loans or Swingline Loans, as the case may be, of such Lender,
substantially in the forms of Exhibit G-1, G-2, G-3, or G-4, respectively, with
appropriate insertions as to date and principal amount.

4.15.        Illegality.  Notwithstanding any other provision herein,
if the adoption of or any change in any Requirement of Law or in the
interpretation or application thereof shall make it unlawful for any Lender to
make or maintain Eurodollar Loans as contemplated by this Agreement, (a) the
commitment of such Lender hereunder to make Eurodollar Loans, continue
Eurodollar Loans as such and convert Base Rate Loans to Eurodollar Loans shall
forthwith be canceled and (b) such Lender’s Loans then outstanding as
Eurodollar Loans, if any, shall be converted automatically to Base Rate Loans
on the respective last days of the then current Interest Periods with respect
to such Loans or within such earlier period as required by law.  If any such conversion of a Eurodollar Loan
occurs on a day which is not the last day of the then current Interest Period
with respect thereto, the Borrower shall pay to such Lender such amounts, if
any, as may be required pursuant to Section 4.11.

Section 5.    REPRESENTATIONS
AND WARRANTIES

To induce the Administrative Agent and the Lenders to
enter into this Agreement and to make the Loans and issue or participate in the
Letters of Credit, the Borrower hereby represents and warrants to each Agent
and each Lender that:

5.1.          Financial Condition.  (a) 
The unaudited pro forma consolidated balance sheet of the Borrower and
its consolidated Subsidiaries as at March 31, 2007 (including the notes
thereto) (the “Pro Forma Balance Sheet”), copies of which have
heretofore been furnished to each Lender, has been prepared giving effect (as
if such events had occurred on such date) to (i) the loans to be made on the
Initial Borrowing Date and the use of proceeds thereof and (ii) the payment of
fees and expenses in connection with the foregoing.  The Pro Forma Balance Sheet has been prepared
in good faith and was based upon assumptions which, in light of the
circumstances under which they were made, were believed by the Borrower in good
faith to be reasonable (it being understood that projections by their nature
are inherently uncertain, actual results may differ from projections and such
differences may be material) and presents fairly on a pro forma basis the
estimated financial position of the Borrower and its consolidated

 48
 

Subsidiaries
as at its fiscal quarter ending March 31, 2007, assuming that the events
specified in the preceding sentence had actually occurred at such date.

(b)           The
audited consolidated balance sheets of the Borrower and its consolidated
Subsidiaries as at December 31, 2005 and December 31, 2006, and the related
consolidated statements of operations, changes in stockholders’ equity and of
cash flows for each of the three years in the period ended December 31, 2006,
reported on by and accompanied by the report from Grant Thornton LLP, present
fairly the consolidated financial condition of the Borrower and its
consolidated Subsidiaries as at such date, and the consolidated results of its
operations and its consolidated cash flows for the respective fiscal years then
ended.  The unaudited consolidated
balance sheet of the Borrower and its consolidated Subsidiaries as at its
fiscal quarter ending March 31, 2007, and the related unaudited consolidated
(i) statements of operations and cash flows for the three-month and
year-to-date periods ended on such date and (ii) the statement of stockholders’
equity for the year-to-date period ended on such date, present fairly the
consolidated financial condition of the Borrower and its consolidated
Subsidiaries as at such date, and the consolidated results of its operations
and its consolidated cash flows for the three-month period then ended (subject
to normal year–end audit adjustments and the absence of footnotes).  All such financial statements, including the
related schedules and notes thereto, have been prepared in accordance with GAAP
applied consistently throughout the periods involved (except as approved by the
aforementioned firm of accountants and disclosed therein).  No Group Member has any material Guarantee
Obligations, contingent liabilities and liabilities for taxes, or any long–term
leases or unusual forward or long–term commitments, including any interest rate
or foreign currency swap or exchange transaction or other obligation in respect
of derivatives, that are not reflected in the most recent financial statements
referred to in this paragraph.  During
the period from December 31, 2006 to and including the date hereof there has
been no Disposition by the Borrower and its Subsidiaries of any material part
of its business or property.

5.2.          No Change.  Since December 31, 2006, there has been no
development or event that has had or would reasonably be expected to have a
Material Adverse Effect.

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

5.4.          Power; Authorization;
Enforceable Obligations.  Each Loan
Party has the power and authority, and the legal right, to make, deliver and
perform the Loan Documents to which it is a party and, in the case of the
Borrower, to obtain extensions of credit hereunder.  Each Loan Party has taken all necessary
organizational action to authorize the execution,

 49
 

delivery
and performance of the Loan Documents to which it is a party and, in the case
of the Borrower, to authorize the extensions of credit on the terms and conditions
of this Agreement.  No consent or
authorization of, filing with, notice to or other act by or in respect of, any
Governmental Authority or any other Person is required in connection with the
extensions of credit hereunder or with the execution, delivery, performance,
validity or enforceability of this Agreement or any of the Loan Documents,
except (i) consents, authorizations, filings and notices described in Schedule
5.4, which consents, authorizations, filings and notices have been obtained
or made and are in full force and effect and (ii) the filings referred to in
Section 5.19.  Each Loan Document has
been (or on the Initial Borrowing Date will be) duly executed and delivered on
behalf of each Loan Party party thereto. 
This Agreement constitutes, and each other Loan Document upon execution
will constitute, a legal, valid and binding obligation of each Loan Party party
thereto, enforceable against each such Loan Party in accordance with its terms,
except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors’ rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law).

5.5.          No Legal Bar.  The execution, delivery and performance of
this Agreement and the other Loan Documents, the issuance of Letters of Credit,
the borrowings hereunder and the use of the proceeds thereof, in each case in
accordance with the terms hereof, will not violate any Requirement of Law or
any Contractual Obligation of any Group Member and will not result in, or
require, the creation or imposition of any Lien on any of their respective
properties or revenues pursuant to any Requirement of Law or any such
Contractual Obligation (other than the Liens created by the Security
Documents).

5.6.          Litigation.  No litigation, investigation or proceeding of
or before any arbitrator or Governmental Authority is pending or, to the
knowledge of the Borrower, threatened by or against any Group Member or against
any of their respective properties or revenues (a) with respect to any of the
Loan Documents or any of the transactions contemplated hereby or thereby, or
(b) that could reasonably be expected to have a Material Adverse Effect.

5.7.          No Default.  No Group Member is in default under or with
respect to any of its Contractual Obligations in any respect that could
reasonably be expected to have a Material Adverse Effect.  No Default or Event of Default has occurred
and is continuing.

5.8.          Ownership of
Property; Liens.  Each Group Member
has title in fee simple to, or a valid leasehold interest in, all its real
property, and good title to, or a valid leasehold interest in, all its other
property, except to the extent failure to have such title in fee simple to, or
valid leasehold interest in, such property could not reasonably be expected to
have a Material Adverse Effect and none of such property is subject to any Lien
except as permitted by Section 8.3.

5.9.          Intellectual Property.  Each Group Member owns, is licensed to use or
is otherwise lawfully permitted to use, all material Intellectual Property
necessary for the conduct of its business as currently conducted; no material
claim has been asserted and is pending by any Person challenging or questioning
the use of any Intellectual Property or the validity or effectiveness of any
Intellectual Property, nor does the Borrower know of any valid basis for any

 50
 

such
claim; and to the knowledge of the Borrower, the use of such Intellectual Property
by each Group Member does not infringe on the rights of any Person in any
material respect.

5.10.        Taxes.  Each Group Member has filed or caused to be
filed all Federal, state and other material tax returns that are required to be
filed and has paid all taxes shown to be due and payable on said returns or on
any assessments made against it or any of its property and all other taxes,
fees or other charges imposed on it or any of its property by any Governmental
Authority (other than any the amount or validity of that are currently being
contested in good faith by appropriate proceedings and with respect to which
reserves in conformity with GAAP have been provided on the books of the
Borrower or its Subsidiaries, as the case may be or to the extent the failure
to file or pay could not reasonably be expected to have a Material Adverse
Effect); no tax Lien has been filed, and, to the knowledge of the Borrower, no
claim is being asserted, with respect to any such tax, fee or other charge.

5.11.        Federal Regulations.  No part of the proceeds of any Loans, and no
other extensions of credit hereunder, will be used for “buying” or “carrying”
any “margin stock” within the respective meanings of each of the quoted terms
under Regulation U as now and from time to time hereafter in effect or for any
purpose that violates the provisions of the Regulations of the Board.  If requested by any Lender or the
Administrative Agent, the Borrower will furnish to the Administrative Agent and
each Lender a statement to the foregoing effect in conformity with the
requirements of FR Form G-3 or FR Form U–1, as applicable, referred to in
Regulation U.

5.12.        Labor Matters.  Except as, in the aggregate, could not
reasonably be expected to have a Material Adverse Effect:  (a) there are no strikes or other labor
disputes against any Group Member pending or, to the knowledge of the Borrower,
threatened; (b) hours worked by and payment made to employees of each Group
Member have not been in violation of the Fair Labor Standards Act or any other
applicable Requirement of Law dealing with such matters; and (c) all payments
due from any Group Member on account of employee health and welfare insurance
have been paid or accrued as a liability on the books of the relevant Group
Member.

5.13.        ERISA.  Neither a Reportable Event nor an “accumulated
funding deficiency” (within the meaning of Section 412 of the Code or Section
302 of ERISA) has occurred during the five–year period prior to the date on
which this representation is made or deemed made with respect to any Plan, and
each Plan has complied in all material respects with the applicable provisions
of ERISA and the Code.  No termination of
a Single Employer Plan has occurred, and no Lien in favor of the PBGC or a Plan
has arisen, during such five-year period. 
The present value of all accrued benefits under each Single Employer
Plan (based on those assumptions used to fund such Plans) did not, as of the
last annual valuation date prior to the date on which this representation is
made or deemed made, exceed the value of the assets of such Plan allocable to
such accrued benefits by a material amount. 
Neither the Borrower nor any Commonly Controlled Entity has incurred any
withdrawal liability under Title IV of ERISA which remains unsatisfied that
would reasonably be expected to have a Material Adverse Effect and neither the
Borrower nor any Commonly Controlled Entity would become subject to any
withdrawal liability under ERISA that would reasonably be expected to have a
Material Adverse Effect if the Borrower or any such Commonly Controlled Entity
were to engage in a complete

 51
 

withdrawal
(as defined in Section 4203 of ERISA) or partial withdrawal (as defined in
Section 4205 of ERISA) from any Multiemployer Plan as of the valuation date
most closely preceding the date on which this representation is made or deemed
made.  No such Multiemployer Plan is in
Reorganization or Insolvent.

5.14.        Investment Company Act;
Other Regulations.  No Loan Party is
an “investment company”, or a company “controlled” by an “investment company”,
within the meaning of the Investment Company Act of 1940, as amended.  No Loan Party is subject to regulation under
any Requirement of Law (other than Regulation X of the Board) that limits its
ability to incur Indebtedness.

5.15.        Subsidiaries.  Except as disclosed to the Administrative
Agent by the Borrower in writing from time to time after the Closing Date, (a) Schedule
5.15 sets forth the name and jurisdiction of incorporation of each
Subsidiary and, as to each such Subsidiary, the percentage of each class of
Capital Stock owned by any Loan Party and (b) there are no outstanding
subscriptions, options, warrants, calls, rights or other agreements or
commitments (other than stock options granted to employees or directors and
directors’ qualifying shares) of any nature relating to any Capital Stock of
any Subsidiary, except as created by the Loan Documents.

5.16.        Use of Proceeds.  The proceeds of the Term Loans shall be used
to (a) re-finance certain of the Borrower’s existing Indebtedness,
(b) fund certain fees and expenses associated with the Facility, and
(c) finance the ongoing working capital, capital expenditure, and general
corporate needs of Borrower and its Subsidiaries.  The proceeds of the Incremental Term Loans
shall be used solely to redeem the Borrower’s outstanding Series Z
Preferred.  The proceeds of the Revolving
Loans and Swingline Loans shall be used, together with the Letters of Credit,
for general corporate purposes.

5.17.        Environmental Matters.  Except as, in the aggregate, could not
reasonably be expected to have a Material Adverse Effect:

(a)           the facilities and
properties owned, leased or operated by any Group Member (the “Properties”)
do not contain, and have not previously contained, any Materials of
Environmental Concern in amounts or concentrations or under circumstances that
constitute or constituted a violation of, or could give rise to liability
under, any Environmental Law;

(b)           no Group Member has
received or is aware of any notice of violation, alleged violation,
non-compliance, liability or potential liability regarding environmental
matters or compliance with Environmental Laws with regard to any of the
Properties or the business operated by any Group Member (the “Business”),
nor does the Borrower have knowledge or reason to believe that any such notice
will be received or is being threatened;

(c)           Materials of
Environmental Concern have not been transported or disposed of from the
Properties in violation of, or in a manner or to a location that could give
rise to liability under, any Environmental Law, nor have any Materials of

 52
 

Environmental Concern been generated,
treated, stored or disposed of at, on or under any of the Properties in
violation of, or in a manner that could give rise to liability under, any applicable
Environmental Law;

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

(e)           there has been no
release or threat of release of Materials of Environmental Concern at or from
the Properties, or arising from or related to the operations of any Group
Member in connection with the Properties or otherwise in connection with the
Business, in violation of or in amounts or in a manner that could give rise to
liability under Environmental Laws;

(f)            the Properties and all
operations at the Properties are in compliance, and have in the last five years
been in compliance, with all applicable Environmental Laws, and there is no
contamination at, under or about the Properties or violation of any
Environmental Law with respect to the Properties or the Business; and

(g)           no Group Member has
assumed any liability of any other Person under Environmental Laws.

5.18.        Accuracy of Information,
etc.  No statement or information
contained in this Agreement, any other Loan Document or any other document,
certificate or statement (other than projections) furnished by or on behalf of
any Loan Party to the Administrative Agent or the Lenders, or any of them, for
use in connection with the transactions contemplated by this Agreement or the
other Loan Documents, when taken as a whole in light of the circumstances under
which it was provided, contained as of the date such statement, information,
document or certificate was so furnished, any untrue statement of a material
fact or omitted to state a material fact necessary to make the statements
contained herein or therein not misleading. 
The Updated Projections were prepared based upon good faith estimates
and assumptions that, in light of the circumstances under which they were made,
were believed by management of the Borrower to be reasonable at the time made,
it being recognized by the Lenders that such financial information as it
relates to future events is not to be viewed as fact and that actual results
during the period or periods covered by such financial information may differ
from the projected results set forth therein by a material amount.

5.19.        Security Documents.  Commencing on the Initial Borrowing Date and
at all times thereafter, (a) the Guarantee and Collateral Agreement is
effective to create in favor of the Administrative Agent, for the benefit of
the Secured Parties, a legal, valid and enforceable security interest in the
Collateral described therein and proceeds thereof.  In the case of the Pledged Stock and Pledged
Notes as described in the Guarantee and Collateral Agreement, when stock
certificates and promissory notes representing such Pledged Stock and Pledged
Notes, respectively, are delivered to the Administrative Agent, and in the case
of the other Collateral

 53
 

described
in the Guarantee and Collateral Agreement, when financing statements and other
filings specified on Schedule 5.19(a) in appropriate form are filed in
the offices specified on Schedule 5.19(a), the Guarantee and Collateral
Agreement shall constitute a fully perfected first priority Lien on, and
security interest in, all right, title and interest of the Loan Parties in such
Collateral and the proceeds thereof, as security for the Obligations, in each
case prior and superior in right to any other Person (except, in the case of
Collateral other than Pledged Stock and Pledged Notes, Liens permitted by
Section 8.3).

(b)           As
of the Closing Date and as of the Initial Borrowing Date, neither the Borrower
nor any of its Subsidiaries owns any real property.

5.20.        Solvency.  Each Loan Party is, and after giving effect
to the incurrence of all Indebtedness and obligations being incurred in
connection herewith and therewith and on each Borrowing Date thereafter, will
be Solvent.

5.21.        [Intentionally Omitted].

5.22.        Inactive Subsidiaries.  No Inactive Subsidiary is (a) engaged in any
active business or (b) except as disclosed on Part B of Schedule 5.22,
owns any property or assets or has incurred, directly or indirectly,
liabilities or obligations in excess of $100,000 in the aggregate.

5.23.        Material Contracts.  All material contracts required to be filed
in connection with the Public Filings under applicable Requirements of Law have
been filed.

5.24.        Bank Accounts.  Except as set forth on Schedule 5.24,
as of the Closing Date neither the Borrower nor any Subsidiary Guarantor
maintains any account (except for accounts the aggregate amount of cash and
Cash Equivalents in which do not exceed $1,000,000 in the aggregate and cash
and Cash Equivalents subject to Liens permitted under Section 8.3).

5.25.        Insurance.  Schedule 5.25 lists the insurance
maintained by the Borrower and the Subsidiary Guarantors as of the Closing
Date.

Section 6.    CONDITIONS PRECEDENT

6.1.          Conditions to the
Initial Borrowing Date.  The
agreement of each Lender to make the initial extension of credit requested to
be made by it is subject to the satisfaction, prior or concurrently with the
making of such extension of credit on the Initial Borrowing Date, of the
following conditions precedent:

(a)           Credit Agreement.  The Administrative Agent shall have received
this Agreement, or, in the case of the Lenders, an Addendum, executed and
delivered by each Agent, the Borrower and each Person that is a Lender as of
the Initial Borrowing Date.

(b)           [Intentionally
Omitted].

(c)           [Intentionally
Omitted].

 54
 

(d)           Capital Structure.  The capital and ownership structure of the
Borrower and its Subsidiaries shall be reasonably satisfactory to the
Administrative Agent (such satisfaction to be evidenced by the Administrative
Agent’s execution of this Agreement).

(e)           Pro Forma Balance
Sheet; Financial Statements.  The
Lenders shall have received the financial statements described in Section 5.1,
and such financial statements shall not, in the reasonable judgment of the
Lenders, reflect any material adverse change in the consolidated financial
condition of the Borrower and its Subsidiaries, as reflected in the financial
statements or projections most recently delivered by the Borrower to the
Administrative Agent (such receipt and judgment to be evidenced by each Lender’s
execution of this Agreement).

(f)            Approvals.  All material governmental and third party
approvals necessary in connection with the continuing operations of the Group
Members and the transactions contemplated hereby shall have been obtained and
be in full force and effect.

(g)           Lien Searches.  The Administrative Agent shall have received
the results of a recent lien search in each of the jurisdictions where the Loan
Parties are organized, and such search shall reveal no liens on any of the
assets of the Loan Parties except for liens permitted by Section 8.3 or to be
discharged on or prior to the Initial Borrowing Date pursuant to documentation
satisfactory to the Administrative Agent (such satisfaction to be evidenced by
the Administrative Agent’s execution of this Agreement).

(h)           Fees.  The Lenders and the Administrative Agent
shall have received all fees that are then required to be paid by the Borrower
hereunder or under the Fee Letter, and all expenses which are required to be
paid by the Borrower hereunder for which invoices have been presented
(including the reasonable fees and expenses of legal counsel), on or before the
Initial Borrowing Date.  All such amounts
will be paid out of proceeds of Loans made on the Initial Borrowing Date and
will be reflected in the funding instructions given by the Borrower to the
Administrative Agent on or before the Initial Borrowing Date.

(i)            Closing
Certificates.  The Administrative
Agent shall have received (i) a certificate of each Loan Party, dated the
Initial Borrowing Date, substantially in the form of Exhibit H,
with appropriate insertions and attachments including the certificate of
incorporation of each Loan Party (which will include, where applicable, the
certificate of designation for the Series Z Preferred) that is a corporation
certified by the relevant authority of the jurisdiction of organization of such
Loan Party, and (ii) a short form good standing certificate for each Loan Party
from its jurisdiction of organization.

(j)            PATRIOT Act.  The Lenders shall have received, sufficiently
in advance of the Initial Borrowing Date, all documentation and other
information required by bank regulatory authorities under applicable “know your
customer” and anti-money laundering rules and regulations, including without
limitation the United States PATRIOT Act (Title III of Pub. L. 107-56 (signed
into law October 26, 2001)), in each case if requested by such Lender (such
satisfaction to be evidenced by each Lender’s execution of this Agreement).

 55
 

(k)           Coke Contract.  The Administrative Agent shall have received
copies of the Coke Beverage Marketing Agreement, together with a certificate of
a Responsible Officer of the Borrower certifying such document as being a true,
correct, and complete copy thereof.

(l)            Legal Opinions.  The Administrative Agent shall have received
the following executed legal opinions:

(i)            the
legal opinion of Holme Roberts & Owen LLP, counsel to the Borrower and its
Subsidiaries, substantially in the form of Exhibit I; and

(ii)           the
legal opinion of local counsel in New Jersey and of such other special and
local counsel as may be reasonably required by the Administrative Agent.

Each such
legal opinion shall cover such other matters incident to the
transactions contemplated by this Agreement as the Administrative Agent may
reasonably require.

(m)          Due Diligence.  Administrative Agent shall have completed its
business, legal, and collateral due diligence, including but not limited to,
(i) receipt of a quality of earnings report, performed by a firm selected
by Administrative Agent, and (ii) a review of the Borrower’s and its
Subsidiaries books and records, the results of which shall be reasonably
satisfactory to Administrative Agent.

(n)           Material Contracts.  Administrative Agent shall have reviewed the
material agreements of the Borrower’s and its Subsidiaries (including, without
limitation, agreements regarding preferred stock and subordinated debt) the
results of which are reasonably satisfactory to Administrative Agent and
Administrative Agent’s reasonable satisfaction with the terms and conditions
thereof.

(o)           Senior Management.  Administrative Agent shall have received
completed reference checks with respect to Borrower’s new senior management,
the results of which are reasonably satisfactory to Administrative Agent.

(p)           Business Plan.  Administrative Agent shall have reviewed the
Borrower’s business plan, the results of which are reasonably satisfactory to
Administrative Agent.

(q)           Secondary Stock
Offering.  Borrower shall have
consummated its secondary stock offering, which shall have generated Net Cash
Proceeds of at least $80 million and shall have used such Net Cash Proceeds to
repay in part the Subordinated Loans and any outstanding Second Lien Term Loans
in full in immediately available funds.

(r)            Consolidated EBITDA.  Borrower shall have had Consolidated EBITDA
of not less than $42,000,000 for the four consecutive fiscal quarter period
ending March 31, 2007.

 56
 

(s)           Guarantee and
Collateral Agreements.  The
Administrative Agent shall have received (i) the Guarantee and Collateral
Agreement, executed and delivered by the Borrower and each Subsidiary
Guarantor, and (ii) an Acknowledgment and Consent in the form attached to the
Guarantee and Collateral Agreements, executed and delivered by each Issuer (as
defined therein), if any, that is not a Loan Party.

(t)            Pledged Stock;
Stock Powers; Pledged Notes.  The
Administrative Agent shall have received (i) the certificates representing the
shares of Capital Stock pledged pursuant to the Guarantee and Collateral
Agreement, together with an undated stock power for each such certificate
executed in blank by a duly authorized officer of the pledgor thereof and (ii)
if reasonably requested by the Administrative Agent, each promissory note (if
any) pledged to the Administrative Agent pursuant to the Guarantee and
Collateral Agreement endorsed (without recourse) in blank (or accompanied by an
executed transfer form in blank) by the pledgor thereof.

(u)           Syndication Letter.  The Administrative Agent shall have received
the Syndication Letter, executed and delivered by the Borrower.

(v)           Filings,
Registrations and Recordings.  Each
document (including any Uniform Commercial Code financing statement) required
by the Security Documents or under law or reasonably requested by the
Administrative Agent to be filed, registered or recorded in order to create in
favor of the Administrative Agent, for the benefit of the Lenders, a perfected
Lien on the Collateral described therein, prior and superior in right to any
other Person (other than with respect to Liens expressly permitted by Section
8.3), shall be in proper form for filing, registration or recordation.

(w)          Solvency Certificate.  The Administrative Agent shall have received
a solvency certificate from the chief financial officer of the Borrower in the
form of Exhibit M.

(x)            Insurance.  The Administrative Agent shall have received
insurance certificates satisfying the requirements of Section 5.3(b) of the
Guarantee and Collateral Agreements.

(y)           Required Liquidity.  The Administrative Agent shall have received
a certificate from the Chief Financial Officer certifying that the sum of (i)
the Available Revolving Commitments on the Initial Borrowing Date (after giving
effect to the Loans made or outstanding on the Initial Borrowing Date) and (ii)
the aggregate unrestricted and unencumbered cash and Cash Equivalents of the
Borrower and its Subsidiaries is not less than the result of (x) $5,000,000
less (y) all fees and expenses paid to Administrative Agent or any Lender on
the Initial Borrowing Date.

(z)            Maximum Loan Amount.  The sum of (i) the Term Loan to be made on
the Closing Date, and (ii) the outstanding principal amount of the aggregate
Revolving Extensions of Credit of all Lenders on the Closing Date, shall not be
greater than 2.26 times the Consolidated EBITDA of the Borrower for the four
consecutive fiscal quarter period ended March 31, 2007.

 57
 

6.2.          [Intentionally
Omitted].

6.3.          Conditions to Each
Extension of Credit.  The agreement
of each Lender to make any extension of credit requested to be made by it on
any date (including its initial extension of credit) is subject to the
satisfaction of the following conditions precedent:

(a)           Notice of Borrowing.  The Administrative Agent shall have received
the notice described in Section 2.2(b) (in the case of the Incremental
Term Loan) or Section 3.2 (in the case of a Revolving Loan), as
applicable.

(b)           Representations and
Warranties.  Each of the
representations and warranties made by any Loan Party in or pursuant to the
Loan Documents shall be true and correct in all material aspects (except that
such materiality qualifier shall not be applicable to any representations and
warranties that are already qualified or modified by materiality in the text
thereof) on and as of such date as if made on and as of such date, except to
the extent such representations and warranties related solely to an earlier
date, in which case such representations and warranties shall have been true
and correct in all material aspects (except that such materiality qualifier
shall not be applicable to any representations and warranties that are already
qualified or modified by materiality in the text thereof) on and as of such
earlier date.

(c)           No Default.  No Default or Event of Default shall have
occurred and be continuing on such date or after giving effect to the
extensions of credit requested to be made on such date.

Each borrowing by and issuance of a Letter of Credit
on behalf of the Borrower hereunder shall constitute a representation and
warranty by the Borrower as of the date of such extension of credit that the
conditions contained in this Section 6.3 have been satisfied.

6.4.          Conditions
to the Incremental Borrowing Date. 
The agreement of each Lender to make the Incremental Term Loan requested
to be made by it is subject to the satisfaction, prior or concurrently with the
making of such extension of credit on the Incremental Borrowing Date, of the
following conditions precedent:

(a)           Successful
Syndication.  The Administrative
Agent shall have satisfactorily completed a successful syndication of the
Commitments and the Obligations as determined by Administrative Agent in its
discretion.

(b)           Fees.  The Lenders and the Administrative Agent
shall have received all fees that are then required to be paid by the Borrower
hereunder or under the Fee Letter (including the closing fee payable in
connection with the Incremental Term Loan pursuant to the Fee Letter), and all
expenses which are required to be paid by the Borrower hereunder for which
invoices have been presented (including the reasonable fees and expenses of
legal counsel), on or before the Incremental Borrowing Date.  All such amounts will be paid out of proceeds
of Loans made on the Incremental Borrowing Date and will be reflected in the
funding instructions given by the Borrower to the Administrative Agent on or
before the Incremental Borrowing Date.

 58
 

Section 7.    AFFIRMATIVE
COVENANTS

The Borrower hereby agrees that, so long as the
Commitments remain in effect, any Letter of Credit remains outstanding or any
Loan or other amount is owing to any Lender or Agent hereunder, the Borrower
shall and shall cause each of its Subsidiaries to:

7.1.          Financial Statements.  Furnish to the Administrative Agent and each
Lender:

(a)           as soon as available,
but in any event within 90 days (or such earlier date specified for the filing
of annual reports on Form 10-K under Section 13 of the Exchange Act) after the
end of each fiscal year of the Borrower, a copy of the audited consolidated
balance sheet of the Borrower and its consolidated Subsidiaries as at the end
of such fiscal year and the related audited consolidated statements of income
and of cash flows for such fiscal year, setting forth in each case in
comparative form the figures for the previous fiscal year, reported on without
a “going concern” or like qualification or exception, or qualification arising
out of the scope of the audit, by Grant Thornton LLP or other independent
certified public accountants of nationally recognized standing;

(b)           as soon as available,
but in any event not later than 45 days (or such earlier date specified for the
filing of quarterly reports on Form 10-Q under Section 13 of the Exchange Act)
after the end of each of the first three quarterly periods of each fiscal year
of the Borrower, the unaudited consolidated balance sheet of the Borrower and
its consolidated Subsidiaries as at the end of such quarter and the related
unaudited consolidated statements of income and of cash flows for such quarter
and the portion of the fiscal year through the end of such quarter, setting
forth in each case in comparative form the figures for the previous fiscal
year, certified by a Responsible Officer as being fairly stated in all material
respects (subject to normal year–end audit adjustments and the absence of
footnotes); and

(c)           as soon as available,
but in any event not later than 30 days after the end of each month occurring
during each fiscal year of the Borrower (other than the third, sixth, ninth and
twelfth such month), the unaudited consolidated balance sheets of the Borrower
and its Subsidiaries as at the end of such month and the related unaudited
consolidated statements of income and of cash flows for such month and the
portion of the fiscal year through the end of such month, setting forth in each
case in comparative form the figures for the previous fiscal year, certified by
a Responsible Officer as being fairly stated in all material respects (subject
to normal year-end audit adjustments and the absence of footnotes).

All such financial statements shall be complete and
correct in all material respects (subject to normal year-end audit adjustments
and the absence of footnotes, in each case if applicable), and shall be
prepared in reasonable detail and in accordance with GAAP applied consistently
throughout the periods reflected therein and with prior periods (except as
approved by such accountants or officer, as the case may be, and disclosed
therein).

 59
 

Information required to
be delivered pursuant to this Section 7.1 shall be deemed to have been
delivered to the Lenders on the date on which the Borrower provides written
notice to the Lenders that such information has been posted on the Borrower’s
website on the Internet at http://www. nwrgi.com or is available on the website
of the SEC at http://www.sec.gov (to the extent such information has been
posted or is available as described in such notice).  Information required to be delivered pursuant
to this Section 7.1 may also be delivered by electronic communication pursuant
to procedures approved by the Administrative Agent pursuant to Section 11.2.

7.2.          Certificates; Other
Information.  Furnish to the
Administrative Agent and each Lender (or, in the case of clause (f), to the
relevant Lender):

(a)           concurrently with the
delivery of any financial statements pursuant to Section 7.1, (i) a certificate
of a Responsible Officer stating that, to the best of each such Responsible
Officer’s knowledge, each Loan Party during such period has observed or
performed all of its covenants and other agreements, and satisfied every
condition, contained in this Agreement and the other Loan Documents to which it
is a party to be observed, performed or satisfied by it, and that such
Responsible Officer has obtained no knowledge of any Default or Event of
Default except as specified in such certificate and (ii) in the case of
quarterly or annual financial statements, (x) a Compliance Certificate
containing all information and calculations necessary for determining
compliance by each Group Member with the provisions of this Agreement referred
to therein as of the last day of the fiscal quarter or fiscal year of the
Borrower, as the case may be, and (y) to the extent not previously disclosed to
the Administrative Agent, a listing of any Intellectual Property registered in
the United States acquired by any Loan Party since the date of the most recent
list delivered pursuant to this clause (y) (or, in the case of the first such
list so delivered, since the Closing Date);

(b)           as soon as available,
and in any event no later than 45 days after the end of each fiscal year of the
Borrower, a detailed consolidated budget for the following fiscal year
(including a projected consolidated balance sheet of the Borrower and its
Subsidiaries as of the end of the following fiscal year, the related
consolidated statements of projected cash flow, projected changes in financial
position and projected income and a description of the underlying assumptions
applicable thereto), and, as soon as available, significant revisions, if any,
of such budget and projections with respect to such fiscal year (collectively,
the “Projections”), which Projections shall in each case be accompanied
by a certificate of a Responsible Officer stating that such Projections were
prepared in good faith and were based upon assumptions which, in light of the
circumstances under which they were made, were believed by the Borrower in good
faith to be reasonable at the time made (it being understood that projections
by their nature are inherently uncertain, actual results may differ from
projections and such differences may be material);

(c)           if the Borrower is not
then a reporting company under the Securities Exchange Act of 1934, as amended,
within 45 days after the end of each fiscal quarter of the Borrower (or 90
days, in the case of the last fiscal quarter of any fiscal year), a narrative discussion
and analysis of the financial condition and results of operations of 

 60
 

the Borrower and its Subsidiaries for such
fiscal quarter and for the period from the beginning of the then current fiscal
year to the end of such fiscal quarter, as compared to the portion of the
Projections covering such periods and to the comparable periods of the previous
fiscal year;

(d)           no later than ten
Business Days prior to the effectiveness thereof, copies of substantially final
drafts of any proposed amendment, supplement, waiver or other modification with
respect to the Series Z Preferred (other than amendments, supplements, waivers
or other modifications that are limited to administrative provisions of such
documents);

(e)           within five days after
the same are sent, copies of all financial statements and reports that the
Borrower sends to the holders of any class of its debt securities or public
equity securities and, within five days after the same are filed, copies of all
financial statements and reports that the Borrower may make to, or file with,
the SEC; and

(f)            promptly, such
additional financial and other information as any Lender may from time to time
reasonably request.

7.3.          Payment of
Obligations.  Pay, discharge or
otherwise satisfy at or before maturity or before they become delinquent, as
the case may be, all its material obligations of whatever nature, except where
the amount or validity thereof is currently being contested in good faith by
appropriate proceedings and reserves in conformity with GAAP with respect
thereto have been provided on the books of the relevant Group Member or to the
extent failure to pay, discharge or satisfy such obligations could not
reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect.

7.4.          Maintenance of
Existence; Compliance.  (a)  (i) 
Preserve, renew and keep in full force and effect its organizational
existence and (ii) take all reasonable action to maintain all rights,
privileges and franchises necessary or desirable in the normal conduct of its
business, except, in each case, as otherwise permitted by Section 8.4 and
except, in the case of clause (ii) above, to the extent that failure to do so
could not reasonably be expected to have a Material Adverse Effect; and (b)
comply with all Contractual Obligations and Requirements of Law except to the
extent that failure to comply therewith could not, in the aggregate, reasonably
be expected to have a Material Adverse Effect.

7.5.          Maintenance of
Property; Insurance.  (a)  Keep all property useful and necessary in its
business in good working order and condition, ordinary wear and tear excepted
and (b) maintain with financially sound and reputable insurance companies
insurance on all its property in at least such amounts and against at least
such risks (but including in any event public liability, product liability and
business interruption) as are usually insured against in the same general area
by companies engaged in the same or a similar business.

7.6.          Inspection of
Property; Books and Records; Discussions. 
(a)  Keep proper books of records
and accounts in which full, true and correct entries in conformity with GAAP
and all Requirements of Law shall be made of all dealings and transactions in
relation to its

 61
 

business
and activities and (b) permit representatives of any Lender (coordinated
through the Administrative Agent) to visit and inspect any of its properties
and examine and make abstracts from any of its books and records at any
reasonable time and as often as may reasonably be desired and to discuss the
business, operations, properties and financial and other condition of the Group
Members with officers and employees of the Group Members and with their
independent certified public accountants.

7.7.          Notices.  Promptly give notice to the Administrative
Agent and each Lender of:

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

(b)           any (i) default or
event of default under any Contractual Obligation of any Group Member or (ii)
litigation, investigation or proceeding that may exist at any time between any
Group Member and any Governmental Authority, that in either case, has a
reasonable likelihood of being adversely determined and, if not cured or if
adversely determined, as the case may be, could reasonably be expected to have
a Material Adverse Effect;

(c)           any litigation or
proceeding affecting any Group Member (i) in which the amount involved is
$2,500,000 or more and not covered by insurance, (ii) in which injunctive or
similar relief is sought that, if adversely determined, could reasonably be
expected to have a Material Adverse Effect or (iii) which relates to any Loan
Document;

(d)           the following events,
as soon as possible and in any event within 30 days after the Borrower knows or
has reason to know thereof:  (i) the
occurrence of any Reportable Event with respect to any Plan, a failure to make
any required contribution to a Plan, the creation of any Lien in favor of the
PBGC or a Plan or any withdrawal from, or the termination, Reorganization or
Insolvency of, any Multiemployer Plan or (ii) the institution of proceedings or
the taking of any other action by the PBGC or the Borrower or any Commonly
Controlled Entity or any Multiemployer Plan with respect to the withdrawal
from, or the termination, Reorganization or Insolvency of, any Plan; and

(e)           any development or
event that has had or could reasonably be expected to have a Material Adverse
Effect.

Each notice pursuant to this Section 7.7 shall be
accompanied by a statement of a Responsible Officer setting forth details of
the occurrence referred to therein and stating what action the Borrower or the
relevant Subsidiary proposes to take with respect thereto.

7.8.          Environmental Laws.  (a) 
Comply in all material respects with, and take all commercially
reasonable efforts to ensure compliance in all material respects by all tenants
and subtenants, if any, with, all applicable Environmental Laws, and obtain and
comply in all material respects with and maintain, and ensure that all tenants
and subtenants obtain and comply in all material respects with and maintain,
any and all licenses, approvals, notifications, registrations or permits
required by applicable Environmental Laws.

 62

(b)           Conduct
and complete all investigations, studies, sampling and testing, and all
remedial, removal and other actions required under Environmental Laws and
promptly comply in all material respects with all lawful orders and directives
of all Governmental Authorities regarding Environmental Laws.

7.9.          Interest Rate
Protection.  In the case of the
Borrower, maintain the Hedge Agreements that are in place on the Closing Date
on the terms in effect on the Closing Date; provided that this Section
7.9 shall not require Borrower to maintain any such Hedge Agreement beyond
the maturity date or expiration date of such Hedge Agreement as in effect on
the Closing Date.

7.10.        Additional Collateral,
etc.  (a)  With respect to any property acquired after
the Initial Borrowing Date by any Group Member (other than (x) any property
described in paragraph (c) or (d) below and any interest in real property, (y)
any property subject to a Lien expressly permitted by Section 8.3(g) and (z)
property acquired by, or the excess of 65% of stock in, any Foreign Subsidiary)
as to which the Administrative Agent, for the benefit of the Secured Parties,
does not have a perfected Lien, promptly (i) execute and deliver to the
Administrative Agent such amendments to the Guarantee and Collateral Agreement
or such other documents as the Administrative Agent deems necessary or
advisable to grant to the Administrative Agent, for the benefit of the Lenders,
a first priority security interest in such property (subject to Liens permitted
by Section 8.3 and (ii) take all actions necessary to grant to the
Administrative Agent, for the benefit of the Lenders, a perfected first
priority security interest in such property (subject to Liens permitted by
Section 8.3, including the filing of Uniform Commercial Code financing
statements in such jurisdictions as may be required by the Guarantee and
Collateral Agreement or by law or as may be requested by the Administrative
Agent.

(b)           With
respect to any fee interest in any real property having a value (together with
improvements thereof) of at least $500,000 acquired after the Initial Borrowing
Date by any Group Member (other than (x) any such real property subject to a
Lien expressly permitted by Section 8.3(h) and (y) real property acquired by
any Foreign Subsidiary), promptly (i) execute and deliver a Mortgage, covering
such real property, which shall grant to the Administrative Agent for the
benefit of the Secured Parties a first priority security interest in such
property (subject, in each case, to Liens permitted by Section 8.3, (ii) if
requested by the Administrative Agent, provide the relevant Lenders with (x)
title and extended coverage insurance covering such real property in an amount
at least equal to the purchase price of such real property (or such other
amount as shall be reasonably specified by the Administrative Agent) as well as
a current ALTA survey thereof, together with a surveyor’s certificate and (y)
any consents or estoppels reasonably deemed necessary or advisable by the
Administrative Agent in connection with such Mortgage, each of the foregoing in
form and substance reasonably satisfactory to the Administrative Agent and
(iii) if requested by the Administrative Agent, deliver to the Administrative
Agent legal opinions relating to the matters described above, which opinions
shall be in form and substance, and from counsel, reasonably satisfactory to
the Administrative Agent.

(c)           With
respect to any new Subsidiary (other than a Foreign Subsidiary) created or
acquired after the Initial Borrowing Date by any Group Member (which, for the
purposes of this paragraph (c), shall include any existing Subsidiary that
ceases to be a Foreign 

 63
 

Subsidiary),
promptly (i) execute and deliver to the Administrative Agent such amendments to
the Guarantee and Collateral Agreement as the Administrative Agent deems
necessary to grant to the Administrative Agent, for the benefit of the Secured
Parties, a perfected first priority security interest in the Capital Stock of
such new Subsidiary, (ii) deliver to the Administrative Agent the certificates
representing such Capital Stock, if any, together with undated stock powers, in
blank, executed and delivered by a duly authorized officer of the relevant
Group Member, (iii) cause such new Subsidiary (A) to become a party to the
Guarantee and Collateral Agreement, (B) to take such actions necessary to grant
to the Administrative Agent for the benefit of the Lenders a perfected first
priority security interest in the Collateral described in the Guarantee and
Collateral Agreement with respect to such new Subsidiary, in the case of the
Secured Parties, including the filing of Uniform Commercial Code financing
statements in such jurisdictions as may be required by the Guarantee and
Collateral Agreement or by law or as may be requested by the Administrative
Agent and (C) to deliver to the Administrative Agent a certificate of such
Subsidiary, substantially in the form of Exhibit H, with appropriate insertions
and attachments, and (iv) if requested by the Administrative Agent, deliver to
the Administrative Agent legal opinions relating to the matters described
above, which opinions shall be in form and substance, and from counsel,
reasonably satisfactory to the Administrative Agent.

(d)           With
respect to any new Foreign Subsidiary created or acquired after the Initial
Borrowing Date by any Group Member (other than by any Group Member that is a
Foreign Subsidiary), promptly (i) execute and deliver to the Administrative
Agent such amendments to the Guarantee and Collateral Agreement as the
Administrative Agent deems necessary or advisable to grant the Administrative
Agent, for the benefit of the Secured Parties, a perfected first priority
security interest in the Capital Stock of such new Subsidiary (provided
that in no event shall more than 65% of the total voting power of the
outstanding Capital Stock of any such new Subsidiary be required to be so
pledged), (ii) deliver to the Administrative Agent the certificates
representing such pledged Capital Stock, together with undated stock powers, in
blank, executed and delivered by a duly authorized officer of the relevant
Group Member and take such other action as may be necessary or, in the opinion
of the Administrative, desirable to perfect such Administrative Agent security
interest therein, and (iii) if requested by the Administrative, deliver to the
Administrative legal opinions relating to the matters described above, which
opinions shall be in form and substance, and from counsel, reasonably
satisfactory to the Administrative.

(e)           Within
60 days following the Initial Borrowing Date, cause all cash and Cash
Equivalents of the Borrower and the Subsidiary Guarantors to be deposited or
maintained in accounts which are subject to Control Agreements (except for
accounts the aggregate amount of cash and Cash Equivalents in which do not
exceed $1,000,000 in the aggregate and cash and Cash Equivalents subject to
Liens permitted under Section 8.3.

7.11.        Further Assurances.  From time to time execute and deliver, or
cause to be executed and delivered, such additional instruments, certificates
or documents, and take all such actions, as the Administrative Agent may
reasonably request for the purposes of implementing or effectuating the
provisions of this Agreement relating to the Collateral, the Security
Documents, or of more fully perfecting or renewing the rights of the
Administrative Agent and the Secured Parties with respect to the Collateral (or
with respect to any additions thereto or replacements or proceeds thereof or
with  respect to any other property or
assets hereafter acquired by the 

 64
 

borrower
or any Subsidiary which may be deemed to be part of the Collateral) pursuant
hereto or thereto.  Upon the exercise by
the Administrative Agent or any Lender of any power, right, privilege or remedy
expressly provided pursuant to this Agreement or the other Loan Documents which
requires any consent, approval, recording qualification or authorization of any
Governmental Authority, the Borrower will execute and deliver, or will cause
the execution and delivery of, all applications, certifications, instruments
and other documents and papers that the Administrative Agent or such Secured
Parties may be required to obtain from the Borrower or any of its Subsidiaries
for such governmental consent, approval, recording, qualification or
authorization.

Section 8.    NEGATIVE
COVENANTS

The Borrower hereby agrees that, so long as the
Commitments remain in effect, any Letter of Credit remains outstanding or any
Loan or other amount is owing to any Lender or Agent hereunder, the Borrower
shall not, and shall not permit any of its Subsidiaries (or in the case of
Section 8.17, Inactive Subsidiaries) to, directly or indirectly:

8.1.          Financial Condition
Covenants.  (a)  Consolidated Leverage Ratio.  Permit the Consolidated Leverage Ratio as of
any time to exceed 2.75:1.00, unless within five (5) Business Days after the
time when the Consolidated Leverage Ratio would otherwise exceed 2.75:1.00,
Borrower prepays the Revolving Loans, the Swingline Loans, the Term Loans and the
Incremental Term Loans by an amount that is sufficient to reduce the
Consolidated Leverage Ratio as of such time to a ratio that does not exceed
2.75:1.00.

(b)           [intentionally
omitted].

(c)           Consolidated
Fixed Charge Coverage Ratio.  Permit
the Consolidated Fixed Charge Coverage Ratio for any period of four consecutive
fiscal quarters of the Borrower ending with the last day of any fiscal quarter
set forth below to be less than the ratio set forth below opposite such fiscal
quarter:

	
  Fiscal Quarter

  	
   

  	
  Consolidated Fixed Charge

  Coverage Ratio

  
	
   

  	
   

  	
   

  
	
  June 30, 2007

  	
   

  	
  1.10:1.00

  
	
   

  	
   

  	
   

  
	
  September 30, 2007

  	
   

  	
  1.10:1.00

  
	
   

  	
   

  	
   

  
	
  December 31, 2007

  	
   

  	
  1.10:1.00

  
	
   

  	
   

  	
   

  
	
  March 31, 2008

  	
   

  	
  1.20:1.00

  
	
   

  	
   

  	
   

  
	
  June 30, 2008

  	
   

  	
  1.20:1.00

  
	
   

  	
   

  	
   

  
	
  September 30, 2008

  	
   

  	
  1.20:1.00

  
	
   

  	
   

  	
   

  
	
  December 31, 2008

  	
   

  	
  1.20:1.00

  

 

 65
 

 

	
  Fiscal Quarter

  	
   

  	
  Consolidated Fixed Charge

  Coverage Ratio

  
	
   

  	
   

  	
   

  
	
  March 31, 2009, and the last day of each fiscal
  quarter of Borrower thereafter

  	
   

  	
  1.10:1.00

  

 

8.2.          Indebtedness.  Create, issue, incur, assume, become liable
in respect of or suffer to exist any Indebtedness, except:

(a)           Indebtedness of any
Loan Party pursuant to any Loan Document;

(b)           [Intentionally
Omitted];

(c)           [Intentionally
Omitted];

(d)           Indebtedness (i) of the
Borrower to any of its Subsidiaries, (ii) of any Subsidiary Guarantor to the
Borrower or any other Subsidiary of Borrower, (iii) of any Foreign Subsidiary
to any other Foreign Subsidiary and (iv) to the extent permitted by Section
8.8(k), of any Foreign Subsidiary to the Borrower or any Subsidiary Guarantor;

(e)           Guarantee Obligations
incurred in the ordinary course of business by the Borrower or any of its
Subsidiaries of (i) obligations of the Borrower, any Subsidiary Guarantor and,
to the extent permitted by Section 8.8(k), of any Foreign Subsidiary and (ii)
operating lease obligations of the Borrower or any such Subsidiary assumed by a
third party in connection with a store closure or conversion, in each case
consistent with past practice;

(f)            Indebtedness and
Guarantee Obligations outstanding on the date hereof and listed on Schedule
8.2(f) and any refinancings, refundings, renewals or extensions thereof
(without increasing, or shortening the maturity of, the principal amount
thereof);

(g)           Indebtedness
(including, without limitation, Capital Lease Obligations) secured by Liens
permitted by Section 8.3(h) in an aggregate principal amount not to exceed
$3,000,000 at any one time outstanding;

(h)           Indebtedness of the
Borrower in respect of the Series Z Preferred and any Replacement Equity
consisting of preferred stock of the Borrower;

(i)            Hedge Agreements
permitted under Section 8.12;

(j)            [Intentionally
Omitted];

(k)           Indebtedness resulting
from (A) surety and appeal bonds incurred in the ordinary course of business
and (B) the honoring of a check, draft or similar instrument 

 66
 

drawn against insufficient funds in the
ordinary course of business so long as, in the case of this clause (B), such
Indebtedness is repaid within three Business Days;

(l)            Indebtedness in
respect of the “Advance” or similar advances (including advances made
subsequent to the Closing Date) under the Coke Beverage Marketing Agreement (as
in effect on the date hereof) and up to $1,000,000 in additional outstanding
advances under the Coke Beverage Marketing Agreement; and

(m)          additional Indebtedness
of the Borrower or any of its Subsidiaries (not otherwise permitted under this
Section 8.2) in an aggregate principal amount (for the Borrower and all of its
Subsidiaries) not to exceed $5,000,000 at any one time outstanding.

8.3.          Liens.  Create, incur, assume or suffer to exist any
Lien upon any of its property, whether now owned or hereafter acquired, except
for:

(a)           Liens for taxes not yet
due or that are being contested or disputed in good faith by appropriate
proceedings, provided that adequate reserves with respect thereto are
maintained on the books of the Borrower or its Subsidiaries, as the case may
be, in conformity with GAAP;

(b)           [Intentionally
Omitted];

(c)           carriers’, warehousemen’s,
mechanics’, materialmen’s, repairmen’s, landlords’ or other like Liens arising
in the ordinary course of business that are not overdue for a period of more
than 45 days or that are being contested in good faith by appropriate
proceedings;

(d)           pledges or deposits in
connection with workers’ compensation, unemployment insurance and other social
security legislation;

(e)           deposits to secure the
performance of bids, trade contracts (other than for borrowed money),
obligations for utilities, leases, statutory obligations, surety and appeal
bonds, replevin bonds, performance bonds and other obligations of a like nature
incurred in the ordinary course of business;

(f)            zoning restrictions,
easements, rights-of-way, restrictions and other similar encumbrances incurred
in the ordinary course of business and minor irregularities of title that, in
the aggregate, are not substantial in amount and that do not in any case
materially detract from the value of the property subject thereto or materially
interfere with the ordinary conduct of the business utilizing the property
subject to such encumbrances and restrictions;

(g)           Liens in existence on
the date hereof listed on Schedule 8.3(g), securing Indebtedness
permitted by Section 8.2(f), provided that no such Lien is spread to
cover any additional property after the Closing Date and that the amount of
Indebtedness secured thereby is not increased (other than accrual of interest,
fees and costs in accordance with the terms thereof);

 67
 

(h)           Liens securing
Indebtedness of the Borrower or any other Subsidiary incurred pursuant to
Section 8.2(g) to finance the acquisition of fixed or capital assets, provided
that (i) such Liens shall be created substantially simultaneously with the
acquisition of such fixed or capital assets, (ii) such Liens do not at any time
encumber any property other than the property financed by such Indebtedness and
(iii) the amount of Indebtedness secured thereby is not increased (other than
accrual of interest, fees and costs in accordance with the terms thereof);

(i)            judgment Liens in
respect of judgments not constituting Events of Default under Section 9(h) so
long as (A) such judgment Liens are released within 90 days after the entry
thereof or (B) the aggregate amount covered by all such judgments Liens does
not exceed $2,500,000 at any time;

(j)            Liens created pursuant
to the Security Documents;

(k)           any interest or title
of a lessor or any lessor’s lender under any lease entered into by the Borrower
or any other Subsidiary in the ordinary course of its business and covering
only the assets so leased;

(l)            Liens not otherwise
permitted by this Section so long as (i) the aggregate outstanding principal
amount of the obligations secured thereby does not exceed $1,000,000 at any
time and (ii) the aggregate fair market value (determined as of the date such
Lien is incurred) of the assets encumbered thereby does not exceed (as to the
Borrower and all of its Subsidiaries) $1,500,000 at any one time;

(m)          Liens existing on fixed
or capital assets at the time of the acquisition thereof by the Borrower or any
of its Subsidiaries, provided, that (x) neither (i) the aggregate
outstanding principal amount of the obligations secured thereby nor (ii) the
aggregate fair market value (determined as of the date such Lien is incurred)
of the assets thereto exceeds (as to the Borrower and all of its Subsidiaries)
$1,000,000 at any one time, (y) such Liens were not created in connection with
or in contemplation of such acquisition and (z) such Liens do not cover any
additional property and the obligations secured thereby are not increased; and

(n)           Liens resulting from
the granting of licenses in the ordinary course of business to any Person to
use any Intellectual Property.

8.4.          Fundamental Changes.  Enter into any merger, consolidation or
amalgamation, or liquidate, wind up or dissolve itself (or suffer any
liquidation or dissolution), or Dispose of, all or substantially all of its
property or business, except that:

(a)           any Subsidiary of the
Borrower may be merged or consolidated with or into the Borrower (provided
that the Borrower shall be the continuing or surviving corporation) or with or
into any Subsidiary Guarantor (provided that the Subsidiary Guarantor
shall be the continuing or surviving corporation) or, subject to Section
8.8(k), with or into any Foreign Subsidiary;

 68
 

(b)           (i) any Subsidiary of
the Borrower may Dispose of any or all of its assets (upon voluntary
liquidation or otherwise) to the Borrower or any Subsidiary Guarantor or, to
the extent permitted by Section 8.8(k), any Foreign Subsidiary and (ii) following
the Disposition of all of its assets in accordance with clause (i) above, such
Subsidiary may liquidate, wind up or dissolve;

(c)           any Subsidiary may
merge with another Person to effect a transaction permitted under Sections
8.8(k) and (l); and

(d)           transactions permitted
under Section 8.5 shall be permitted.

8.5.          Disposition of
Property.  Dispose of any of its
property, whether now owned or hereafter acquired, or, in the case of any
Subsidiary, issue or sell any shares of such Subsidiary’s Capital Stock to any
Person, except:

(a)           the Disposition
(including abandonment of Intellectual Property) of obsolete or worn out
property or of property no longer useful or used in the Borrower’s or any of
the Subsidiaries’ business, in each case, in the ordinary course of business,
whether now owned or hereafter acquired;

(b)           the sale of inventory
in the ordinary course of business;

(c)           Dispositions permitted
by Section 8.4(b);

(d)           the sale or issuance of
any Subsidiary’s Capital Stock to the Borrower or any Wholly Owned Subsidiary
Guarantor;

(e)           the sale or discount
without recourse of accounts receivable or notes receivable arising in the
ordinary course of business, or the conversion or exchange of accounts
receivable into or for notes receivable, in each case in connection with the
compromise or collection thereof;

(f)            the Disposition of the
Capital Stock or the assets of Manhattan Bagels Company, Inc., provided
that, (i) the consideration received in any such Disposition shall be in an
amount at least equal to the fair market value of such Property and (ii) at
least 50% of the consideration received in any such Disposition shall be in
cash;

(g)           the Disposition of
assets of the New World Coffee business and the Capital Stock or assets of
Chesapeake Bagel Franchise Corp.;

(h)           subleases, licenses,
franchises and dispositions or cancellations of leases, licenses or franchise
agreements in the ordinary course of business; and

(i)            the Disposition of
other property for consideration not to exceed 
$5,000,000 in the aggregate for any calendar year of the Borrower.

8.6.          Restricted Payments.  Declare or pay any dividend (other than
dividends payable solely in common stock, or options, warrants or other rights
to purchase common stock, 

 69
 

of
the Person making such dividend) on, or make any payment on account of, or set
apart assets for a sinking or other analogous fund for, the purchase,
redemption, defeasance, retirement or other acquisition of, any Capital Stock
of any Group Member, whether now or hereafter outstanding, or make any other
distribution in respect thereof, either directly or indirectly, whether in cash
or property or in obligations of the Borrower or any of its Subsidiaries
(collectively, “Restricted Payments”), except that:

(a)           any Subsidiary may make
Restricted Payments to the Borrower or any Wholly Owned Subsidiary Guarantor;

(b)           so long as no Default
or Event of Default shall have occurred and be continuing or would result
therefrom, the Borrower may purchase the Borrower’s common stock or common
stock options from present or former officers, consultants or employees of any
Group Member upon the death, disability or termination of employment of such
officer, consultant or employee, provided, that the aggregate amount of
payments hereunder after the date hereof (net of any proceeds received by the
Borrower after the date hereof in connection with resales of any common stock
or common stock options so purchased) shall not exceed $1,000,000; and

(c)           the foregoing shall not
prohibit the Borrower from redeeming the Series Z Preferred pursuant to a
mandatory redemption provision of the certificate of designation with respect
to the Series Z Preferred as in effect on the date hereof, to the extent that
such redemption is required by the terms of the certificate of designation with
respect to the Series Z Preferred as in effect on the date hereof.

8.7.          Capital Expenditures.  Make or commit to make any Capital
Expenditures, other than Capital Expenditures indicated in any fiscal year
below, in an aggregate amount not to exceed the corresponding amount indicated
below:

	
  Fiscal Year

  	
   

  	
  Capital Expenditures

  	
   

  
	
  2007

  	
   

  	
  $

  	
  25,000,000

  	
   

  
	
  2008

  	
   

  	
  $

  	
  28,000,000

  	
   

  
	
  2009, and each
  fiscal year of Borrower thereafter

  	
   

  	
  $

  	
  33,000,000

  	
   

  

 

provided, however,
notwithstanding anything contained herein to the contrary, the Capital
Expenditures limitation set forth above in this Section 8.7 shall
be increased in any fiscal year by an amount equal to the greater of (i) the
unused amount of Capital Expenditures in the immediately prior fiscal year (it
being understood that such unused amount shall be calculated without giving
effect to any increase in the permitted amount of Capital Expenditures with
respect to such immediately prior fiscal year pursuant to this proviso such
that the next year’s carryover does not include any unused portion of the prior
year’s carryover), and (ii) 25% of the Excess Cash Flow from the immediately
prior fiscal year.

8.8.          Investments.  Make any advance, loan, extension of credit
(by way of guaranty or otherwise) or capital contribution to, or purchase any
Capital Stock, bonds, notes, 

 70
 

debentures
or other debt securities of, or any assets constituting a business unit of, or
make any other investment in, any other Person (all of the foregoing, “Investments”),
except:

(a)           extensions of trade
credit in the ordinary course of business;

(b)           Investments in cash and
Cash Equivalents;

(c)           Guarantee Obligations
permitted by Section 8.2;

(d)           loans and advances to
officers, directors, consultants, employees of any Group Member of the Borrower
in the ordinary course of business (including for indemnification, travel,
entertainment and relocation expenses) in an aggregate amount for all Group
Members not to exceed $500,000 at any one time outstanding;

(e)           Investments in notes
receivable and other instruments and securities obtained in connection with
transactions permitted by Section 8.5(e);

(f)            intercompany
Investments by (i) any Group Member in the Borrower or any Person that, prior
to such Investment, is a Subsidiary Guarantor or (ii) any Foreign Subsidiary in
any Foreign Subsidiary;

(g)           Investments resulting
from payments required under Hedge Agreements permitted under Section 8.12;

(h)           Investments resulting
from non-cash consideration received in connection with Asset Sales so long as
the aggregate outstanding amount of such Investments does not exceed $7,500,000
at any time;

(i)            Capital Expenditures
permitted under Section 8.7;

(j)            (i) loans to
franchisees and area developers in an amount not to exceed $250,000 in any fiscal
year and (ii) existing loans to franchisees not to exceed $250,000 in the
aggregate;

(k)           in addition to
Investments otherwise expressly permitted by this Section, Investments
(including Acquisitions) by the Borrower or any of its Subsidiaries in an aggregate
amount outstanding (valued at cost) not to exceed at any one time the sum of
(i) $1,000,000 plus (ii) the product of (x) $1,000,000 and (y) the number of
calendar years ended after the Initial Closing Date minus (iii) the outstanding
amount of any Investments made in reliance on Section 8.8(l)(iv)(y);

(l)            Acquisitions, provided
that (i) no Default or Event of Default shall have then occurred and be
continuing or would result therefrom, (ii) such Acquisition is initiated and
completed on a “friendly” basis, (iii) if such Acquisition is a Material
Acquisition, after giving effect thereto on a pro  forma basis as
if such Acquisition were completed on the first day of the most recent period
of four consecutive fiscal quarters for which financial statements have been
delivered, the Borrower would have been in compliance with Section 8.1(a)
(assuming the required ratio was 0.25 to 1.00 lower than 

 71
 

the then applicable ratio), (iv) the
consideration for any such Acquisition shall consist exclusively of a combination
of (x) common stock of the Borrower and (y) other consideration in connection
with such Acquisition in an aggregate amount outstanding (valued at cost) not
to exceed at any one time the sum of (I) $1,000,000 plus (II) the product of
(A) $1,000,000 and (B) the number of calendar years ended after the Original
Closing Date minus (III) the outstanding amount of any Investments made in
reliance on Section 8.8(k) and (v) the Borrower shall have delivered a
certificate of a Responsible Officer certifying compliance with the foregoing
conditions (and attaching reasonably detailed calculations) at least five
Business Days prior to the consummation thereof; and

(m)          deposits permitted by
Section 8.3(e).

8.9.          Certain Payments and
Modifications of Certain Debt Instruments. 
(a)  Amend, modify, waive or
otherwise change, or consent or agree to any amendment, modification, waiver or
other change to, any of the terms of the Series Z Preferred or any Replacement
Equity consisting of preferred stock (other than (i) any such amendment,
modification, waiver or other change that (A) would extend or eliminate the
scheduled redemption date or reduce the amount of any scheduled redemption
payment or reduce the rate or extend any date for payment of dividends thereon
and (B) does not involve the payment of a consent fee other than any consent
fees paid in connection with the extension of the scheduled redemption date in
an aggregate amount not exceeding $250,000 and (ii) amendments, modifications,
waivers or other changes that are limited to administrative provisions of such
documents), or (b) make any payment in respect of any Indebtedness under the
Coke Beverage Marketing Agreement or any other Indebtedness of the type
described in clause (k) of the definition thereof, to the extent that, after
giving effect thereto, the Available Revolving Commitment would be less than
$2,000,000.

8.10.        Transactions with
Affiliates.  Enter into any
transaction, including any purchase, sale, lease or exchange of property, the
rendering of any service or the payment of any management, advisory or similar
fees, with any Affiliate (other than the Borrower or any Wholly Owned
Subsidiary Guarantor) unless such transaction is (a) otherwise not prohibited
under this Agreement and (b) upon fair and reasonable terms no less favorable
to the relevant Group Member, than it would obtain in a comparable arm’s length
transaction with a Person that is not an Affiliate.

8.11.        Sales and Leasebacks.  Enter into any arrangement with any Person
providing for the leasing by any Group Member of real or personal property that
has been or is to be sold or transferred by such Group Member to such Person or
to any other Person to whom funds have been or are to be advanced by such
Person on the security of such property or rental obligations of such Group
Member.

8.12.        Hedge Agreements.  Enter into any Hedge Agreement, except Hedge
Agreements entered into in order to effectively cap, collar or exchange
interest rates from floating to fixed rates with respect to any interest-bearing
liability or investment of the Borrower or any of its Subsidiaries.

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8.13.        Changes
in Fiscal Periods.  Permit the fiscal
year of the Borrower to end on a day other than December 31 (subject to Section
1.2(f)) or change the Borrower’s method of determining fiscal quarters; provided,
that, with the prior written consent of the Administrative Agent (such consent
not to be unreasonably withheld), the Borrower may change its fiscal year, provided,
that, in connection with such change, no fiscal year may include more than five
fiscal quarters without the prior written consent of the Administrative Agent
and the amounts permitted under Section 8.7 shall be pro  rata
with respect to any fiscal year which does not consist of four fiscal quarters.

8.14.        Negative Pledge Clauses.  Enter into or suffer to exist or become
effective any agreement that prohibits, limits or imposes any condition upon
the ability of any Group Member to create, incur, assume or suffer to exist any
Lien upon any of its property or revenues, whether now owned or hereafter
acquired, to secure its obligations under the Loan Documents or any refinancing
thereof other than (a) this Agreement and the other Loan Documents, (b) any
agreements governing any utility bonds, industrial revenue or development
bonds, purchase money Liens or Capital Lease Obligations otherwise permitted
hereby (in which case, any prohibition or limitation shall only be effective
against the assets financed thereby), (c) restrictions on assets subject to
agreements for permitted Dispositions under Section 8.5 (such
restrictions to be limited to the assets subject to such Dispositions) and (d)
restrictions in lease agreements restricting the Group Members from assigning
or pledging their rights under such lease agreements.

8.15.        Clauses Restricting
Subsidiary Distributions.  Enter into
or suffer to exist or become effective any consensual encumbrance or
restriction on the ability of any Subsidiary of the Borrower to (a) make
Restricted Payments in respect of any Capital Stock of such Subsidiary held by,
or pay any Indebtedness owed to, the Borrower or any other Subsidiary of the
Borrower, (b) make loans or advances to, or other Investments in, the Borrower
or any other Subsidiary of the Borrower or (c) transfer any of its assets to
the Borrower or any other Subsidiary of the Borrower, except for such
encumbrances or restrictions existing under or by reason of (i) any
restrictions existing under the Loan Documents and (ii) any restrictions with
respect to a Subsidiary imposed pursuant to an agreement that has been entered
into in connection with the Disposition of all or substantially all of the
Capital Stock or assets of such Subsidiary.

8.16.        Lines of Business.  Enter into any business, either directly or
through any Subsidiary, except for those businesses in which the Borrower and
its Subsidiaries are engaged on the date of this Agreement or that are
reasonably related thereto.

8.17.        Inactive Subsidiaries.  With respect to Inactive Subsidiaries, (a)
engage in an active business or (b) except as disclosed on Part B of Schedule
5.22, own any property or assets or incur, directly or indirectly,
liabilities or obligations in excess of $100,000 in the aggregate.

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Section 9.    EVENTS OF DEFAULT

If any of the following
events shall occur and be continuing:

(a)           the Borrower shall fail
to pay any principal of any Loan or Reimbursement Obligation when due in
accordance with the terms hereof; or the Borrower shall fail to pay any
interest on any Loan or Reimbursement Obligation, or any other amount payable
hereunder or under any other Loan Document, within five days after any such
interest or other amount becomes due in accordance with the terms hereof; or

(b)           any representation or
warranty made or deemed made by any Loan Party herein or in any other Loan
Document or that is contained in any certificate, document or financial or
other statement furnished by it at any time under or in connection with this
Agreement or any such other Loan Document shall prove to have been inaccurate
in any material respect (except that such materiality qualifier shall not be
applicable to any representations and warranties that are already qualified or
modified by materiality in the text thereof) on or as of the date made or
deemed made; or

(c)           (i)  any Loan Party shall default in the
observance or performance of any agreement contained in clause (i) or (ii) of
Section 7.4(a) (with respect to the Borrower only), Section 7.5(b), Section
7.7(a) or Section 8 of this Agreement or Sections 5.5(a) and 5.7(b) of either
Guarantee and Collateral Agreement or (ii) an “Event of Default” under and as
defined in any Mortgage shall have occurred and be continuing; or

(d)           any Loan Party shall
default in the observance or performance of any other agreement contained in
this Agreement or any other Loan Document (other than as provided in paragraphs
(a) through (c) of this Section), and such default shall continue unremedied
for a period of 30 days after notice to the Borrower from the Administrative
Agent or the Required Lenders; or

(e)           any Group Member (other
than an Inactive Subsidiary) (i) defaults in making any payment of any
principal of any Indebtedness (including any Guarantee Obligation, but
excluding the Loans) on the scheduled or original due date with respect
thereto; or (ii) defaults in making any payment of any interest on any such
Indebtedness beyond the period of grace, if any, provided in the instrument or
agreement under which such Indebtedness was created; or (iii) defaults in the
observance or performance of any other agreement or condition relating to any
such Indebtedness or contained in any instrument or agreement evidencing,
securing or relating thereto, or any other event shall occur or condition
exist, the effect of which default or other event or condition is to cause, or
to permit the holder or beneficiary of such Indebtedness (or a trustee or agent
on behalf of such holder or beneficiary) to cause, with the giving of notice if
required, such Indebtedness to become due prior to its stated maturity or to become
subject to a mandatory offer to purchase by the obligor thereunder or (in the
case of any such Indebtedness constituting a Guarantee Obligation) to become
payable; provided, that a default, event or condition described in
clause (i), (ii) or (iii) of this paragraph (e) shall not at any time
constitute an Event of Default unless, at such time, one or more defaults,
events or conditions of the type described in clauses (i), (ii) and (iii) of
this paragraph (e) 

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shall have occurred and be continuing with
respect to Indebtedness the outstanding principal amount of which exceeds in
the aggregate $2,500,000; or

(f)            (i) any Group Member
(other than an Inactive Subsidiary) shall commence any case, proceeding or
other action (A) under any existing or future law of any jurisdiction, domestic
or foreign, relating to bankruptcy, insolvency, reorganization or relief of
debtors, seeking to have an order for relief entered with respect to it, or
seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization,
arrangement, adjustment, winding-up, liquidation, dissolution,
composition or other relief with respect to it or its debts, or (B) seeking
appointment of a receiver, trustee, custodian, conservator or other similar
official for it or for all or any substantial part of its assets, or any Group
Member shall make a general assignment for the benefit of its creditors; or
(ii) there shall be commenced against any Group Member (other than an Inactive
Subsidiary) any case, proceeding or other action of a nature referred to in
clause (i) above that (A) results in the entry of an order for relief or any
such adjudication or appointment or (B) remains undismissed, undischarged or
unbonded for a period of 60 days; or (iii) there shall be commenced against any
Group Member (other than an Inactive Subsidiary) any case, proceeding or other
action seeking issuance of a warrant of attachment, execution, distraint or
similar process against all or any substantial part of its assets that results
in the entry of an order for any such relief that shall not have been vacated,
discharged, or stayed or bonded pending appeal within 60 days from the entry
thereof; or (iv) any Group Member (other than an Inactive Subsidiary) shall
take any action in furtherance of, or indicating its consent to, approval of,
or acquiescence in, any of the acts set forth in clause (i), (ii), or (iii)
above; or (v) any Group Member (other than an Inactive Subsidiary) shall
generally not, or shall be unable to, or shall admit in writing its inability to,
pay its debts as they become due; or

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

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(h)           one or more judgments
or decrees shall be entered against any Group Member involving in the aggregate
a liability (not paid or fully covered by insurance as to which the relevant
insurance company has acknowledged coverage) of $2,500,000 or more, which such
judgments or decrees shall not have been vacated, discharged, stayed or bonded
pending appeal within 30 days from the entry thereof; or

(i)            any of the Security
Documents shall cease, for any reason, to be in full force and effect, or any
Loan Party or any Affiliate of any Loan Party shall so assert, or any Lien
created by any of the Security Documents shall cease to be enforceable and of
the same effect and priority purported to be created thereby; or

(j)            the guarantee
contained in Section 2 of the Guarantee and Collateral Agreement shall cease,
for any reason, to be in full force and effect or any Loan Party or any
Affiliate of any Loan Party shall so assert; or

(k)           (i) any “person” or “group”
(as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”)), excluding the Permitted
Investors, shall become, or obtain the right (whether by means of warrants,
options or otherwise) to become, the “beneficial owner” (as defined in Rules
13(d)-3 and 13(d)-5 under the Exchange Act), directly or indirectly, of more
than 35% of the outstanding common stock of the Borrower; (ii) (A) any “person”
or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange
Act), excluding the Permitted Investors, shall become or obtain the right
(whether by means of warrants, options or otherwise) to become the “beneficial
owner” (as defined in Rules 13(d)-3 and 13(d)-5 under the Exchange Act),
directly or indirectly, of more than 25% of the outstanding common stock of the
Borrower (such person or group collectively, the “Specified Investors”), and
(B) the Permitted Investors shall own of record and beneficially less of the
outstanding common stock of the Borrower than such Specified Investors own; (iii)
Continuing Directors shall cease to constitute a majority of the board of
directors of the Borrower; or (iv) a Specified Change of Control shall occur;

then, and in any such event, (A) if such event is an
Event of Default specified in clause (i) or (ii) of paragraph (f) above with
respect to the Borrower, automatically the Commitments shall immediately
terminate and the Loans hereunder (with accrued interest thereon) and all other
amounts owing under this Agreement and the other Loan Documents (including all
amounts of L/C Obligations, whether or not the beneficiaries of the then
outstanding Letters of Credit shall have presented the documents required
thereunder) shall immediately become due and payable, and (B) if such event is
any other Event of Default, either or both of the following actions may be
taken:  (i) with the consent of the
Required Lenders, the Administrative Agent may, or upon the request of the
Required Lenders, the Administrative Agent shall, by notice to the Borrower
declare the Revolving Commitments to be terminated forthwith, whereupon the
Revolving Commitments shall immediately terminate; and (ii) with the consent of
the Required Lenders, the Administrative Agent may, or upon the request of the
Required Lenders, the Administrative Agent shall, by notice to the Borrower,
declare the Loans hereunder (with accrued interest thereon) and all other
amounts owing under this Agreement and the other Loan Documents (including all
amounts of L/C Obligations, whether or not the beneficiaries of the then 

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outstanding Letters of Credit shall have presented the
documents required thereunder) to be due and payable forthwith, whereupon the
same shall immediately become due and payable. 
With respect to all Letters of Credit with respect to which presentment
for honor shall not have occurred at the time of an acceleration pursuant to
this paragraph, the Borrower shall at such time deposit in a cash collateral
account opened by the Administrative Agent an amount equal to 105% of the
Stated Amount of such Letters of Credit. 
Amounts held in such cash collateral account shall be applied by the
Administrative Agent to the payment of drafts drawn under such Letters of
Credit, and the unused portion thereof after all such Letters of Credit shall
have expired or been fully drawn upon, if any, shall be applied in accordance
with Section 4.8.  After all
such Letters of Credit shall have expired or been fully drawn upon, all
Reimbursement Obligations shall have been satisfied and all other Obligations
of the Borrower hereunder and under the other Loan Documents shall have been
paid in full, the balance, if any, in such cash collateral account shall be
returned to the Borrower (or such other Person as may be lawfully entitled
thereto).  Except as expressly provided
above in this Section, presentment, demand, protest and all other notices of
any kind are hereby expressly waived by the Borrower.

Section 10.    THE
AGENTS

10.1.        Appointment and
Authorization of Administrative Agent. 
Each Lender hereby designates and appoints the Administrative Agent as
its representative under this Agreement and the other Loan Documents and each
Lender hereby irrevocably authorizes the Administrative Agent to execute and
deliver each of the other Loan Documents on its behalf and to take such other
action on its behalf under the provisions of this Agreement and each other Loan
Document and to exercise such powers and perform such duties as are expressly
delegated to Agent by the terms of this Agreement or any other Loan Document,
together with such powers as are reasonably incidental thereto.  The Administrative Agent agrees to act as
such on the express conditions contained in this Section 10.  The provisions of this Section 10 are solely
for the benefit of the Administrative Agent, and the Lenders, and the Borrower
and its Subsidiaries shall have no rights as a third party beneficiary of any
of the provisions contained herein.  Any
provision to the contrary contained elsewhere in this Agreement or in any other
Loan Document notwithstanding, the Administrative Agent shall not have any
duties or responsibilities, except those expressly set forth herein, nor shall
the Administrative Agent have or be deemed to have any fiduciary relationship
with any Lender, and no implied covenants, functions, responsibilities, duties,
obligations or liabilities shall be read into this Agreement or any other Loan
Document or otherwise exist against Agent; it being expressly understood and
agreed that the use of the word “Administrative Agent” is for convenience only,
that Wells Fargo Foothill, Inc. is merely the representative of the Lenders,
and only has the contractual duties set forth herein.  Except as expressly otherwise provided in
this Agreement, the Administrative Agent shall have and may use its sole discretion
with respect to exercising or refraining from exercising any discretionary
rights or taking or refraining from taking any actions that the Administrative
Agent expressly is entitled to take or assert under or pursuant to this
Agreement and the other Loan Documents. 
Without limiting the generality of the foregoing, or of any other
provision of the Loan Documents that provides rights or powers to the
Administrative Agent, Lenders agree that the Administrative Agent shall have
the right to exercise the following powers as long as this Agreement remains in
effect:  (a) maintain, in accordance with
its customary business practices, ledgers and records reflecting the status of
the Obligations under the Loan Documents, the Collateral, and related matters,
(b) execute or file any and all financing or similar statements or 

 77

notices, amendments, renewals, supplements, documents,
instruments, proofs of claim, notices and other written agreements with respect
to the Loan Documents, (c) make Loans, for itself or on behalf of Lenders as
provided in the Loan Documents, (d) open and maintain such bank accounts and
cash management arrangements as the Administrative Agent deems necessary and
appropriate in accordance with the Loan Documents for the foregoing purposes
with respect to the Collateral, (f) perform, exercise, and enforce any and all
other rights and remedies of the Lenders with respect to the Borrower, the
Obligations under the Loan Documents, the Collateral, or otherwise related to
any of same as provided in the Loan Documents, and (g) incur and pay such
expenses as the Administrative Agent may deem necessary or appropriate for the
performance and fulfillment of its functions and powers pursuant to the Loan
Documents.

10.2.        Delegation of Duties.  The Administrative Agent may execute any of
its duties under this Agreement or any other Loan Document by or through
agents, employees or attorneys in fact and shall be entitled to advice of
counsel concerning all matters pertaining to such duties.  The Administrative Agent shall not be responsible
for the negligence or misconduct of any agent or attorney in fact that it
selects as long as such selection was made without gross negligence or willful
misconduct.

10.3.        Liability of the
Administrative Agent.  Neither the
Administrative Agent nor any of its officers, directors, employees, agents,
attorneys-in-fact or affiliates shall (a) be liable for any action taken or
omitted to be taken by any of them under or in connection with this Agreement
or any other Loan Document or the transactions contemplated hereby (except for
its own gross negligence or willful misconduct), or (b) be responsible in any
manner to any of the Lenders for any recital, statement, representation or
warranty made by the Borrower or any Subsidiary or Affiliate of the Borrower,
or any officer or director thereof, contained in this Agreement or in any other
Loan Document, or in any certificate, report, statement or other document
referred to or provided for in, or received by the Administrative Agent under
or in connection with, this Agreement or any other Loan Document, or the
validity, effectiveness, genuineness, enforceability or sufficiency of this
Agreement or any other Loan Document, or for any failure of the Borrower or any
other party to any Loan Document to perform its obligations hereunder or
thereunder.  Neither the Administrative
Agent nor any of its officers, directors, employees, agents, attorneys-in-fact
or affiliates shall be under any obligation to any Lender to ascertain or to
inquire as to the observance or performance of any of the agreements contained
in, or conditions of, this Agreement or any other Loan Document, or to inspect
the books and records or properties of the Borrower or the books or records or
properties of any of the Borrower’s Subsidiaries or Affiliates.

10.4.        Reliance by
Administrative Agent.  The
Administrative Agent shall be entitled to rely, and shall be fully protected in
relying, upon any writing, resolution, notice, consent, certificate, affidavit,
letter, telegram, telefacsimile or other electronic method of transmission,
telex or telephone message, statement or other document or conversation
believed by it to be genuine and correct and to have been signed, sent, or made
by the proper Person or Persons, and upon advice and statements of legal
counsel (including counsel to the Borrower or counsel to any Lender),
independent accountants and other experts selected by the Administrative
Agent.  The Administrative Agent shall be
fully justified in failing or refusing to take any action under this Agreement
or any other Loan Document unless the Administrative Agent shall first receive
such advice or concurrence of the Lenders as it deems appropriate and 

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until
such instructions are received, the Administrative Agent shall act, or refrain
from acting, as it deems advisable.  If
the Administrative Agent so requests, it shall first be indemnified to its
reasonable satisfaction by the Lenders against any and all liability and
expense that may be incurred by it by reason of taking or continuing to take
any such action.  The Administrative
Agent shall in all cases be fully protected in acting, or in refraining from
acting, under this Agreement or any other Loan Document in accordance with a
request or consent of the requisite Lenders and such request and any action
taken or failure to act pursuant thereto shall be binding upon all of the
Lenders.

10.5.        Notice
of Default or Event of Default.  The
Administrative Agent shall not be deemed to have knowledge or notice of the
occurrence of any Default or Event of Default, except with respect to defaults
in the payment of principal, interest, fees, and expenses required to be paid
to the Administrative Agent for the account of the Lenders and, except with
respect to Events of Default of which the Administrative Agent has actual
knowledge, unless the Administrative Agent shall have received written notice
from a Lender or the Borrower referring to this Agreement, describing such
Default or Event of Default, and stating that such notice is a “notice of
default.”  The Administrative Agent
promptly will notify the Lenders of its receipt of any such notice or of any
Event of Default of which the Administrative Agent has actual knowledge.  If any Lender obtains actual knowledge of any
Event of Default, such Lender promptly shall notify the other Lenders and the Administrative
Agent of such Event of Default.  Each
Lender shall be solely responsible for giving any notices to its Participants,
if any.  Subject to Section 10.4, the
Administrative Agent shall take such action with respect to such Default or
Event of Default as may be requested by the Required Lenders in accordance with
Section 9; provided, however, that unless and until the Administrative Agent
has received any such request, the Administrative Agent may (but shall not be
obligated to) take such action, or refrain from taking such action, with
respect to such Default or Event of Default as it shall deem advisable.

10.6.        Credit Decision.  Each Lender acknowledges that neither the
Administrative Agent nor any of its officers, directors, employees, agents, attorneys-in-fact
or affiliates have made any representation or warranty to it, and that no act
by the Administrative Agent hereinafter taken, including any review of the
affairs of the Borrower and its Subsidiaries or Affiliates, shall be deemed to
constitute any representation or warranty by the Administrative Agent or any of
its officers, directors, employees, agents, attorneys-in-fact or affiliates to
any Lender.  Each Lender represents to
the Administrative Agent that it has, independently and without reliance upon
either the Administrative Agent or any of its officers, directors, employees,
agents, attorneys-in-fact or affiliates and based on such documents and
information as it has deemed appropriate, made its own appraisal of and
investigation into the business, prospects, operations, property, financial and
other condition and creditworthiness of the Borrower and any other Person party
to a Loan Document, and all applicable bank regulatory laws relating to the
transactions contemplated hereby, and made its own decision to enter into this
Agreement and to extend credit to the Borrower. 
Each Lender also represents that it will, independently and without
reliance upon the Administrative Agent or any of its officers, directors,
employees, agents, attorneys-in-fact or affiliates and based on such documents
and information as it shall deem appropriate at the time, continue to make its
own credit analysis, appraisals and decisions in taking or not taking action
under this Agreement and the other Loan Documents, and to make such
investigations as it deems necessary to inform itself as to the business,
prospects, operations, property, financial and other condition and
creditworthiness of 

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the
Borrower and any other Person party to a Loan Document.  Except for notices, reports, and other
documents expressly herein required to be furnished to the Lenders by the
Administrative Agent, the Administrative Agent shall not have any duty or
responsibility to provide any Lender with any credit or other information concerning
the business, prospects, operations, property, financial and other condition or
creditworthiness of the Borrower and any other Person party to a Loan Document
that may come into the possession of the Administrative Agent or any of its
officers, directors, employees, agents, attorneys-in-fact or affiliates.

10.7.        Costs and Expenses;
Indemnification.  The Administrative
Agent may incur and pay expenses to the extent the Administrative Agent
reasonably deems necessary or appropriate for the performance and fulfillment
of its functions, powers, and obligations pursuant to the Loan Documents,
including court costs, attorneys fees and expenses, fees and expenses of
financial accountants, advisors, consultants, and appraisers, costs of
collection by outside collection agencies, auctioneer fees and expenses, and
costs of security guards or insurance premiums paid to maintain the Collateral,
whether or not the Borrower is obligated to reimburse the Administrative Agent
or the Lenders for such expenses pursuant to this Agreement or otherwise.  Whether or not the transactions contemplated
hereby are consummated, the Lenders shall indemnify upon demand the
Administrative Agent’s officers, directors, employees, agents, attorneys-in-fact
or affiliates (to the extent not reimbursed by or on behalf of the Borrower and
without limiting the obligation of the Borrower to do so), according to their
Pro Rata Shares, from and against any and all Indemnified Liabilities; provided,
however, that no Lender shall be liable for the payment to any officers,
directors, employees, agents, attorneys-in-fact or affiliates of the
Administrative Agent of any portion of such Indemnified Liabilities resulting
solely from such Person’s gross negligence or willful misconduct nor shall any
Lender be liable for the obligations of any Lender in failing to make a Loan or
other extension of credit hereunder. 
Without limitation of the foregoing, each Lender shall reimburse the
Administrative Agent upon demand for such Lender’s Pro Rata Share of any costs
or out of pocket expenses (including attorneys, accountants, advisors, and
consultants fees and expenses) incurred by the Administrative Agent in
connection with the preparation, execution, delivery, administration,
modification, amendment, or enforcement (whether through negotiations, legal
proceedings or otherwise) of, or legal advice in respect of rights or
responsibilities under, this Agreement, any other Loan Document, or any
document contemplated by or referred to herein, to the extent that the Administrative
Agent is not reimbursed for such expenses by or on behalf of the Borrower.  The undertaking in this Section shall survive
the payment of all Obligations under the Loan Documents and the resignation or
replacement of the Administrative Agent.

10.8.        Agent in Its Individual
Capacity.  Each Agent and its
affiliates may make loans to, issue letters of credit for the account of,
accept deposits from, acquire equity interests in, and generally engage in any
kind of banking, trust, financial advisory, underwriting, or other business
with the Borrower and its Subsidiaries and Affiliates and any other Person
party to any Loan Documents as though Wells Fargo Foothill, Inc. were not the
Administrative Agent hereunder, and, in each case, without notice to or consent
of the Lenders.  The other Lenders
acknowledge that, pursuant to such activities, the Administrative Agent or its
Affiliates may receive information regarding the Borrower or its Affiliates and
any other Person party to any Loan Documents that is subject to confidentiality
obligations in favor of the Borrower or such other Person and that prohibit the
disclosure of such information to the Lenders, and the Lenders acknowledge
that, in such circumstances (and in the absence of a waiver of such confidentiality

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obligations,
which waiver the Administrative Agent will use its reasonable best efforts to
obtain), the Administrative Agent shall not be under any obligation to provide
such information to them.  The terms
“Lender” and “Lenders” include WFF in its individual capacity.

10.9.        Successor
Administrative Agent.  The
Administrative Agent may resign as Administrative Agent upon 10 days notice to
the Lenders.  If the Administrative Agent
resigns under this Agreement, the Required Lenders shall appoint a successor
Administrative Agent for the Lenders.  If
no successor Administrative Agent is appointed prior to the effective date of
the resignation of the Administrative Agent, the Administrative Agent may
appoint, after consulting with the Lenders, a successor Administrative
Agent.  If the Administrative Agent has
materially breached or failed to perform any material provision of this
Agreement or of applicable law, the Required Lenders may agree in writing to
remove and replace the Administrative Agent with a successor Administrative
Agent from among the Lenders.  In any
such event, upon the acceptance of its appointment as successor Administrative
Agent hereunder, such successor Administrative Agent shall succeed to all the
rights, powers, and duties of the retiring Agent and the term “Administrative
Agent” shall mean such successor Administrative Agent and the retiring
Administrative Agent’s appointment, powers, and duties as Administrative Agent
shall be terminated.  After any retiring
Agent’s resignation hereunder as Agent, the provisions of this Section 10.9
shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was Administrative Agent under this Agreement.  If no successor Administrative Agent has
accepted appointment as Administrative Agent by the date which is 45 days
following a retiring Administrative Agent’s notice of resignation, the retiring
Administrative Agent’s resignation shall nevertheless thereupon become
effective and the Lenders shall perform all of the duties of the Administrative
Agent hereunder until such time, if any, as the Lenders appoint a successor
Administrative Agent as provided for above.

10.10.      Lenders in Individual Capacity.  Any Lender and its respective Affiliates may
make loans to, issue letters of credit for the account of, accept deposits
from, acquire equity interests in and generally engage in any kind of banking,
trust, financial advisory, underwriting, or other business with the Borrower
and its Subsidiaries and Affiliates and any other Person party to any Loan
Documents as though such Lender were not a Lender hereunder without notice to
or consent of the other Lenders.  The
other Lenders acknowledge that, pursuant to such activities, such Lender and
its respective Affiliates may receive information regarding the Borrower or its
Affiliates and any other Person party to any Loan Documents that is subject to
confidentiality obligations in favor of the Borrower or such other Person and
that prohibit the disclosure of such information to the Lenders, and the
Lenders acknowledge that, in such circumstances (and in the absence of a waiver
of such confidentiality obligations, which waiver such Lender will use its
reasonable best efforts to obtain), such Lender shall not be under any
obligation to provide such information to them.

10.11.      Administrative Agent, L/C
Arranger and Issuing Lender Generally. 
Except as expressly set forth herein, the Administrative Agent, the L/C
Arranger, nor any Issuing Lender shall have any duties or responsibilities hereunder
in its capacity as such.

10.12.      [Intentionally Omitted].

 81
 

10.13.      The Issuing Lender; the L/C
Arranger.            Without
limiting any rights otherwise granted herein to the L/C Arranger, or any
Issuing Lender, it is understood and agreed that the L/C Arranger and any
Issuing Lender (i) shall have all of the benefits and immunities (x) provided
to the Administrative Agent in this Section 10, with respect to their rights
and obligations under this Agreement and with respect to acts taken or
omissions suffered by the L/C Arranger or any Issuing Lender in connection with
Letters of Credit issued or made under this Agreement and the documents
associated therewith as fully as if the term “Administrative Agent”, as used in
this Section 10, included the L/C Arranger, with respect to such acts or
omissions and (y) as additionally provided in this Agreement and (ii) shall
have all of the benefits of the provisions of Section 10.7 as fully as if the
term “Administrative Agent”, as used in Section 10.7 included the L/C Arranger
or any Issuing Lender; provided that, any resignation by the L/C
Arranger shall apply to its agreement to cause the issuance of Letters of
Credit and, provided  further that, if the L/C Arranger shall
resign (which may occur at any time for any reason) and no successor L/C
Arranger shall be appointed, no additional Letters of Credit shall be issued
under this Agreement.

10.14.      Agency for Perfection.  The
Administrative Agent hereby appoints each other Lender as its agent (and each
Lender hereby accepts such appointment) for the purpose of perfecting the
Administrative Agent’s Liens in assets which, in accordance with Article 8 or
Article 9, as applicable, of the Code can be perfected only by possession or
control.  Should any Lender obtain
possession or control of any such Collateral, such Lender shall notify the
Administrative Agent thereof, and, promptly upon the Administrative Agent’s
request therefor shall deliver possession or control of such Collateral to the
Administrative Agent or in accordance with the Administrative Agent’s
instructions.

10.15.      Payments by Agent to the Lenders.  All
payments to be made by the Administrative Agent to the Lenders shall be made by
bank wire transfer of immediately available funds pursuant to such wire
transfer instructions as each party may designate for itself by written notice
to Agent.  Concurrently with each such
payment, the Administrative Agent shall identify whether such payment (or any
portion thereof) represents principal, premium, fees, or interest of the
Obligations under the Loan Documents.

10.16.      Concerning the Collateral and Related Loan
Documents.  Each Lender authorizes and directs
the Administrative Agent to enter into this Agreement and the other Loan
Documents.  Each Lender agrees that any
action taken by the Administrative Agent in accordance with the terms of this
Agreement or the other Loan Documents relating to the Collateral and the
exercise by the Administrative Agent of its powers set forth therein or herein,
together with such other powers that are reasonably incidental thereto, shall
be binding upon all of the Lenders.

10.17.      Several Obligations; No Liability.  Notwithstanding
that certain of the Loan Documents now or hereafter may have been or will be
executed only by or in favor of the Administrative Agent in its capacity as
such, and not by or in favor of the Lenders, the Administrative Agent shall not
have any obligation to make any credit available hereunder.  Nothing contained herein shall confer upon
any Lender any interest in, or subject any Lender to any liability for, or in
respect of, the business, assets, profits, losses, or liabilities of any other
Lender.  Each Lender shall be solely
responsible for notifying its Participants of any matters 

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relating to the Loan
Documents to the extent any such notice may be required, and no Lender shall
have any obligation, duty, or liability to any Participant of any other
Lender.  Except as provided in Section
10.7, no Lender shall have any liability for the acts of any Lender.  No Lender shall be responsible to the
Borrower or any other Person for any failure by any other Lender to fulfill its
obligations to make credit available hereunder, nor to advance for it or on its
behalf in connection with its Commitment, nor to take any other action on its
behalf hereunder or in connection with the financing contemplated herein.

Section 11.    MISCELLANEOUS

11.1.        Amendments and Waivers.  Neither this Agreement, any other Loan
Document, nor any terms hereof or thereof may be amended, supplemented or modified
except in accordance with the provisions of this Section 11.1.  The Required Lenders and each Loan Party
party to the relevant Loan Document may, or, with the written consent of the
Required Lenders, the Administrative Agent and each Loan Party party to the
relevant Loan Document may, from time to time, (a) enter into written
amendments, supplements or modifications hereto and to the other Loan Documents
for the purpose of adding any provisions to this Agreement or the other Loan
Documents or changing in any manner the rights of the Lenders or of the Loan
Parties hereunder or thereunder or (b) waive, on such terms and conditions as
the Required Lenders or the Administrative Agent, as the case may be, may
specify in such instrument, any of the requirements of this Agreement or the
other Loan Documents or any Default or Event of Default and its consequences; provided,
however, that (y) the Fee Letter may be amended upon the written consent
of Administrative Agent and Borrower, and (z) no such waiver and no such
amendment, supplement or modification shall:

(i)            forgive the principal
amount or extend the final scheduled date of maturity of any Loan, extend the
scheduled date of any amortization payment in respect of any Term Loan or
Incremental Term Loan, reduce the stated rate of any interest or fee payable
hereunder (except (x) in connection with the waiver of the applicability of any
post-default increase in interest rates, which waiver shall be effective with
the consent of the Majority Facility Lenders of each adversely affected
Facility and (y) that any amendment or modification of defined terms used in
the financial covenants in this Agreement shall not constitute a reduction in
the rate of interest or fees for purposes of this clause (i)) or extend the
scheduled date of any payment thereof, or increase the amount or extend the
expiration date of any Lender’s Revolving Commitment, in each case without the
written consent of each Lender directly affected thereby;

(ii)           release all or
substantially all of the Collateral under the Security Documents or release all
or substantially all of the Subsidiary Guarantors from their obligations in
respect of the Facilities, in each case without the written consent of all the
Lenders;

(iii)          eliminate or reduce the
voting rights of any Lender under this Section 11.1 without the written consent
of such Lender;

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(iv)          reduce any percentage
specified in the definition of Required Lenders or consent to the assignment or
transfer by the Borrower of any of its rights and obligations under this
Agreement and the other Loan Documents, in each case without the written
consent of all Lenders;

(v)           amend, modify or waive
any condition precedent to any extension of credit under the Revolving Facility
set forth in Section 6.3 (including in connection with any waiver of an
existing Default or Event of Default) without the written consent of the
Majority Facility Lenders with respect to the Revolving Facility;

(vi)          subject to the following
two paragraphs of this Section 11.1, amend, modify or waive any
provision of Section 4.8 without the written consent of all Lenders in respect
of each Facility adversely affected thereby; provided, that any
amendment, modification or waiver of Section 4.8 which changes the
pro rata provision therein shall require the written consent of each Lender
adversely affected thereby;

(vii)         amend, modify or waive
any provision of Section 4.2(e) or Section 8.1(a) without the
written consent of all Lenders;

(viii)        reduce the amount of Net
Cash Proceeds required to be applied to prepay Loans under this Agreement
without the written consent of the Majority Facility Lenders with respect to
each Facility;

(ix)           reduce the amount of
Excess Cash Flow required to be applied to prepay Loans under this Agreement
without the written consent of all Lenders with respect to each Facility;

(x)            reduce the percentage
specified in the definition of Majority Facility Lenders with respect to any
Facility without the written consent of all Lenders under such Facility;

(xi)           amend, modify or waive
any provision of Section 10 without the written consent of each Agent adversely
affected thereby;

(xii)          amend, modify or waive
any provision of Section 3.3 or 3.4 without the written consent of the
Swingline Lender; or

(xiii)         amend, modify or waive any
provision of Sections 3.7 to 3.14 without the written consent of the L/C
Arranger.

Any such waiver and any such amendment, supplement or
modification shall apply equally to each of the Lenders and shall be binding
upon the Loan Parties, the Lenders, the Administrative Agent and all future
holders of the Loans.  In the case of any
waiver, the Loan Parties, the Lenders and the Administrative Agent shall be
restored to their former position and rights hereunder and under the other Loan
Documents, and any Default or Event of Default waived 

 84
 

shall be deemed to be cured and not continuing; but no
such waiver shall extend to any subsequent or other Default or Event of
Default, or impair any right consequent thereon.

Notwithstanding
the foregoing, this Agreement may be amended (or amended and restated) with the
written consent of the Required Lenders, the Administrative Agent and the
Borrower (a) to add one or more additional credit facilities to this Agreement
and to permit the extensions of credit from time to time outstanding thereunder
and the accrued interest and fees in respect thereof (collectively, the “Additional
Extensions of Credit”) to share ratably in the benefits of this Agreement
and the other Loan Documents with the Term Loans, the Incremental Term Loans,
and Revolving Extensions of Credit and the accrued interest and fees in respect
thereof and (b) to include appropriately the Lenders holding such credit
facilities in any determination of the Required Lenders and Majority Facility
Lenders.

In addition,
notwithstanding the foregoing, this Agreement may be amended with the written
consent of the Administrative Agent, the Borrower and the Lenders providing the
relevant Replacement Term Loans (as defined below) to permit the refinancing of
all outstanding Term Loans and Incremental Term Loans (“Refinanced Term
Loans”) with a replacement term loan tranche hereunder (“Replacement
Term Loans”), provided that (a) the aggregate principal amount of
such Replacement Term Loans shall not exceed the aggregate principal amount of
such Refinanced Term Loans, (b) the Applicable Margin for such Replacement Term
Loans shall not be higher than the Applicable Margin for such Refinanced Term
Loans, (c) the weighted average life to maturity of such Replacement Term Loans
shall not be shorter than the weighted average life to maturity of such
Refinanced Term Loans at the time of such refinancing and (d) all other terms
applicable to such Replacement Term Loans shall be substantially identical to,
or less favorable to the Lenders providing such Replacement Term Loans than,
those applicable to such Refinanced Term Loans, except to the extent necessary
to provide for covenants and other terms applicable to any period after the
latest final maturity of the Term Loans or Incremental Term Loans in effect
immediately prior to such refinancing.

Notwithstanding
the foregoing, any provision of this Agreement may be amended by an agreement
in writing entered into by the Borrower, the Required Lenders and the
Administrative Agent (and, if their rights or obligations are affected thereby,
the Issuing Bank and the Swingline Lender) if (i) by the terms of such
agreement the Commitments of each Lender not consenting to the amendment
provided for therein shall terminate upon the effectiveness of such amendment
and (ii) at the time such amendment becomes effective, each Lender not
consenting thereto receives payment in full of the principal of and interest
accrued on each Loan made by it and all other amounts owing to it or accrued
for its account under this Agreement.

11.2.        Notices.  All notices, requests and demands to or upon
the respective parties hereto to be effective shall be in writing (including by
telecopy), and, unless otherwise expressly provided herein, shall be deemed to
have been duly given or made when delivered, or three Business Days after being
deposited in the mail, postage prepaid, or, in the case of telecopy notice,
when received, addressed as follows in the case of the Borrower and the
Administrative Agent, and as set forth in an administrative questionnaire
delivered to the Administrative Agent in the case of the Lenders, or to such
other address as may be hereafter notified by the respective parties hereto:

 85
 

 

	
  The Borrower:

  	
  Einstein Noah Restaurant Group, Inc. 555 

  Zang Street, Suite 300 

  Lakewood, CO 80228 

  Attention:         Richard P.
  Dutkiewicz, Chief 

                           Financial
  Officer 

  Telecopy:         (303) 568-8402
  

  Telephone:       (303) 568-8004

  
	
   

  	
   

  
	
  The Administrative
  Agent:

  	
  Wells Fargo Foothill, Inc. 

  2450 Colorado Avenue 

  Suite 3000 West 

  Santa Monica, CA 90404 

  Attention:         Specialty
  Finance Manager 

  Telecopy:         (310) 453-7300
  

  Telephone:       (310) 453-7442

  

provided
that any notice, request or demand to or upon Administrative Agent, the Issuing
Lender or the Lenders shall not be effective until received.

Notices and other communications to the Lenders
hereunder may be delivered or furnished by electronic communications pursuant
to procedures approved by the Administrative Agent; provided that the
foregoing shall not apply to notices pursuant to Section 2 unless otherwise
agreed by the Administrative Agent and the applicable Lender.  The Administrative Agent or the Borrower may,
in its discretion, agree to accept notices and other communications to it
hereunder by electronic communications pursuant to procedures approved by it; provided
that approval of such procedures may be limited to particular notices or
communications.

11.3.        No Waiver; Cumulative
Remedies.  No failure to exercise and
no delay in exercising, on the part of Administrative Agent or any Lender, any
right, remedy, power or privilege hereunder or under the other Loan Documents
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.

11.4.        Survival of
Representations and Warranties.  All
representations and warranties made hereunder, in the other Loan Documents and
in any document, certificate or statement delivered pursuant hereto or in
connection herewith shall survive the execution and delivery of this Agreement
and the making of the Loans and other extensions of credit hereunder.

11.5.        Payment of Expenses and
Taxes.  The Borrower agrees (a) to
pay or reimburse each Agent for all its reasonable out-of-pocket
costs and expenses incurred in connection with the development, preparation and
execution of, and any amendment, supplement or modification to, this Agreement
and the other Loan Documents and any other documents prepared in connection
herewith or therewith, and the consummation and administration of the
transactions contemplated hereby and thereby, including the reasonable fees and
disbursements of counsel to each Agent and filing and recording fees and
expenses, with statements with 

 86
 

respect
to the foregoing initially expected (assuming the Closing Date occurs) to be
submitted to the Borrower prior to the Initial Borrowing Date (in the case of
amounts to be paid on the Initial Borrowing Date) and from time to time
thereafter on a quarterly basis or such other periodic basis as Administrative
Agent shall deem appropriate, subject at all times to the limitations set forth
in the Fee Letter, (b) to pay or reimburse each Lender and each Agent for all
its costs and expenses incurred in connection with the enforcement or
preservation of any rights under this Agreement, the other Loan Documents and
any such other documents, including the fees and disbursements of counsel
(including the allocated fees and expenses of in-house counsel) to each Lender
and of counsel to Administrative Agent, (c) to pay, indemnify, and hold each
Lender and each Agent harmless from, any and all recording and filing fees and
any and all liabilities with respect to, or resulting from any delay in paying,
stamp, excise and other taxes, if any, that may be payable or determined to be
payable in connection with the execution and delivery of, or consummation or
administration of any of the transactions contemplated by, or any amendment,
supplement or modification of, or any waiver or consent under or in respect of,
this Agreement, the other Loan Documents and any such other documents, and (d)
to pay, indemnify, and hold each Lender and each Agent and their respective
officers, directors, employees, affiliates, agents and controlling persons
(each, an “Indemnitee”) harmless from and against any and all other
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever with
respect to the execution, delivery, enforcement, performance and administration
of this Agreement, the other Loan Documents (regardless of whether any Loan
Party is or is not a party to any such actions or suits) and any such other documents,
including any of the foregoing relating to the use of proceeds of the Loans or
the issuance of Letters of Credit or the causing of the issuance of Letters of
Credit or the violation of, noncompliance with or liability under, any
Environmental Law applicable to the operations of any Group Member or any of
the Properties and the reasonable fees and expenses of legal counsel in
connection with claims, actions or proceedings by any Indemnitee against any
Loan Party under any Loan Document (all the foregoing in this clause (d),
collectively, the “Indemnified Liabilities”), provided, that the
Borrower shall have no obligation hereunder to any Indemnitee with respect to
Indemnified Liabilities to the extent such Indemnified Liabilities are found by
a final and nonappealable decision of a court of competent jurisdiction to have
resulted from the gross negligence or willful misconduct of such
Indemnitee.  Without limiting the
foregoing, and to the extent permitted by applicable law, the Borrower agrees
not to assert and to cause its Subsidiaries not to assert, and hereby waives
and agrees to cause its Subsidiaries to waive, all rights for contribution or
any other rights of recovery with respect to all claims, demands, penalties,
fines, liabilities, settlements, damages, costs and expenses of whatever kind
or nature, under or related to Environmental Laws, that any of them might have
by statute or otherwise against any Indemnitee. 
All amounts due under this Section 11.5 shall be payable not later than
ten days after written demand therefor. 
Statements payable by the Borrower pursuant to this Section 11.5 shall
be submitted to Chief Financial Officer (Telephone No. (303) 568-8004)
(Telecopy No. (303) 568-8402), at the address of the Borrower set forth in
Section 11.2, or to such other Person or address as may be hereafter designated
by the Borrower in a written notice to the Administrative Agent.  The agreements in this Section 11.5
shall survive repayment of the Loans and all other amounts payable hereunder.

11.6.        Successors and Assigns;
Participations and Assignments. 
(a)  The provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns permitted hereby (including any
affiliate of the L/C 

 87
 

Arranger
that issues any Letter of Credit  or that
causes any Letter of Credit to be issued), except that (i) the Borrower may not
assign or otherwise transfer any of its rights or obligations hereunder without
the prior written consent of each Lender (and any attempted assignment or
transfer by the Borrower without such consent shall be null and void) and (ii)
no Lender may assign or otherwise transfer its rights or obligations hereunder
except in accordance with this Section.

(b)             (i) 
Subject to the conditions set forth in paragraph (b)(ii) below, any
Lender may assign to one or more assignees (each, an “Assignee”) all or
a portion of its rights and obligations under this Agreement (including all or
a portion of its Commitments and the Loans at the time owing to it) with the
prior written consent (any such consent not to be unreasonably withheld) of:

(A)          the Borrower, provided
that no consent of the Borrower shall be required for an (x) assignment to a
Lender, an affiliate of a Lender, an Approved Fund (as defined below) or, if an
Event of Default under Section 9(a) or (f) has occurred and is continuing, any
other Person, (y) any assignment by the Administrative Agent (or its
affiliates), provided that any such assignment of a Initial Term Loan Commitment
or Incremental Term Loan Commitment pursuant to this clause (y) shall require
the consent of the Borrower (such consent not to be unreasonably withheld)
unless such assignment is made in connection with the primary syndication of
the Facilities to a Person disclosed to the Borrower prior to the Closing Date
or (z) any assignment of Term Loans and funded Incremental Term Loans; and

(B)           the Administrative
Agent, provided that no consent of the Administrative Agent shall be
required for (x) an assignment to an Assignee that is a Lender immediately
prior to giving effect to such assignment, except in the case of an assignment
of a Revolving Commitment to an Assignee that does not already have a Revolving
Commitment, (y) any assignment by the Administrative Agent (or its affiliates)
or (z) any assignment of Term Loans and Incremental Term Loans; and

(C)           in the case of any
assignment of a Revolving Commitment, the L/C Arranger.

(ii)           Assignments shall be
subject to the following additional conditions:

(A)          except in the case of an
assignment to a Lender, an affiliate of a Lender or an Approved Fund or an
assignment of the entire remaining amount of the assigning Lender’s Commitments
or Loans under any Facility, the amount of the Commitments or 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 

 88
 

Administrative Agent) shall not be less than
$1,000,000 and, after giving effect thereto, the assigning Lender (if it shall
retain any Revolving Commitment or Loans) shall have Commitments and Loans
aggregating at least $1,000,000, unless each of the Borrower and the
Administrative Agent otherwise consent, provided that (1) no such
consent of the Borrower shall be required if an Event of Default under Section
9(a) or (f) has occurred and is continuing and (2) such amounts shall be
aggregated in respect of each Lender and its affiliates or Approved Funds, if
any;

(B)           the parties to each
assignment shall execute and deliver to the Administrative Agent an Assignment
and Assumption, and, subject to Section 4.13, the assigning Lender or the
assignee Lender shall pay a processing and recordation fee of $3,500 (except
for the Administrative Agent and any of its Affiliates and the Borrower and
except for assignments by a Lender to any of its Affiliates or Approved Funds);

(C)           the Assignee, if it
shall not be a Lender, shall deliver to the Administrative Agent an
administrative questionnaire; and

(D)          in the case of an
assignment by a Lender to a CLO related to such Lender (as defined below), the
assigning Lender shall retain the sole right to approve any amendment,
modification or waiver of any provision of this Agreement and the other Loan
Documents, provided that the Assignment and Assumption between such
Lender and such CLO may provide that such Lender will not, without the consent
of such CLO, agree to any amendment, modification or waiver that (1) requires
the consent of each Lender directly affected thereby pursuant to the proviso to
the second sentence of Section 11.1 and (2) directly affects such CLO.

For the purposes of this Section 11.6, the terms “Approved
Fund” and “CLO” have the following meanings:

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

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

(iii)          Subject to acceptance
and recording thereof pursuant to paragraph (b)(iv) below, from and after the
effective date specified in each Assignment and Assumption the Assignee thereunder
shall be a party hereto and, to the extent of the interest assigned by such
Assignment and Assumption, have the rights and obligations of a Lender under
this Agreement, and the assigning Lender 

 89
 

thereunder shall, to the extent of the
interest assigned by such Assignment and Assumption, be released from its
obligations under this Agreement (and, in the case of an Assignment and
Assumption covering all of the assigning Lender’s rights and obligations under
this Agreement, such Lender shall cease to be a party hereto but shall continue
to be entitled to the benefits of Sections 4.9, 4.10, 4.11 and 10.5).  Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this
Section 11.6 shall be treated for purposes of this Agreement as a sale by such
Lender of a participation in such rights and obligations in accordance with
paragraph (c) of this Section.

(iv)          The Administrative
Agent, acting for this purpose as a non-fiduciary agent of the Borrower, shall
maintain at one of its offices a copy of each Assignment and Assumption
delivered to it and a register for the recordation of the names and addresses
of the Lenders, and the Commitments of, and principal amount of the Loans and
L/C Obligations owing to, each Lender pursuant to the terms hereof from time to
time (the “Register”).  The
entries in the Register shall be conclusive, and the Borrower, the
Administrative Agent, the L/C Arranger and the Lenders may treat each Person
whose name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to the
contrary.  The Register shall be
available for inspection by the Borrower, the L/C Arranger and any Lender, at
any reasonable time and from time to time upon reasonable prior notice.

(v)           Upon its receipt of a
duly completed Assignment and Assumption executed by an assigning Lender and an
Assignee, the Assignee’s completed administrative questionnaire (unless the
Assignee shall already be a Lender hereunder) and any written consent to such
assignment required by paragraph (b) of this Section, the Administrative Agent
shall accept such Assignment and Assumption and record the information
contained therein in the Register.  No
assignment shall be effective for purposes of this Agreement unless it has been
recorded in the Register as provided in this paragraph.

(c)           (i)  Any Lender may, without the consent of the
Borrower or the Administrative Agent, sell participations to one or more banks
or other entities (a “Participant”) in all or a portion of such Lender’s
rights and obligations under this Agreement (including all or a portion of its
Commitments and the Loans owing to it); provided that (A) such Lender’s
obligations under this Agreement shall remain unchanged, (B) such Lender shall
remain solely responsible to the other parties hereto for the performance of
such obligations and (C) the Borrower, the Administrative Agent, the L/C
Arranger and the other Lenders shall continue to deal solely and directly with
such Lender in connection with such Lender’s rights and obligations under this
Agreement.  Any agreement pursuant to
which a Lender sells such a participation shall provide that such Lender shall
retain the sole right to enforce this Agreement and to approve any amendment,
modification or waiver of any provision of this Agreement; provided that
such agreement may provide that such Lender will not, without the consent of
the Participant, agree to any amendment, modification or waiver that (1) requires
the consent of each Lender directly affected thereby pursuant to the proviso to
the second sentence of Section 11.1 and (2) directly affects such
Participant.  Subject to paragraph
(c)(ii) of this Section, the Borrower agrees that 

 90
 

each Participant
shall be entitled to the benefits of Sections 4.9, 4.10 and 4.11 to the same
extent as if it were a Lender and had acquired its interest by assignment
pursuant to paragraph (b) of this Section. 
To the extent permitted by law, each Participant also shall be entitled
to the benefits of Section 10.14(b) as though it were a Lender, provided
such Participant shall be subject to Section 10.14(b) as though it were a
Lender.

(ii)           A Participant shall not
be entitled to receive any greater payment under Section 4.9 or 4.10 than the
applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to
such Participant is made with the Borrower’s prior written consent.  Any Participant that is a Non-U.S. Lender
shall not be entitled to the benefits of Section 4.10 unless such Participant
complies with Sections 4.10(d) and 4.10(e).

(d)           Any
Lender may at any time pledge or assign a security interest in all or any
portion of its rights under this Agreement to secure obligations of such
Lender, including any pledge or assignment to secure obligations to a Federal
Reserve Bank, and this Section shall not apply to any such pledge or assignment
of a security interest; provided that no such pledge or assignment of a
security interest shall release a Lender from any of its obligations hereunder
or substitute any such pledgee or Assignee for such Lender as a party hereto.

(e)           The
Borrower, upon receipt of written notice from the relevant Lender, agrees to
issue Notes to any Lender requiring Notes to facilitate transactions of the
type described in paragraph (d) above.

(f)            Notwithstanding
the foregoing, any Conduit Lender may assign any or all of the Loans it may
have funded hereunder to its designating Lender without the consent of the
Borrower or the Administrative Agent and without regard to the limitations set
forth in Section 11.6(b).  Each of the
Borrower, each Lender and the Administrative Agent hereby confirms that it will
not institute against a Conduit Lender or join any other Person in instituting
against a Conduit Lender any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceeding under any state bankruptcy or similar law,
for one year and one day after the payment in full of the latest maturing
commercial paper note issued by such Conduit Lender; provided, however,
that each Lender designating any Conduit Lender hereby agrees to indemnify,
save and hold harmless each other party hereto for any loss, cost, damage or expense
arising out of its inability to institute such a proceeding against such
Conduit Lender during such period of forbearance.

11.7.        Adjustments; Set-off.  (a) 
Except to the extent that this Agreement expressly provides for payments
to be allocated to a particular Lender or to the Lenders under a particular
Facility, if any Lender (a “Benefitted Lender”) shall receive any
payment of all or part of the Obligations owing to it under the Loan Documents,
or receive any collateral in respect thereof (whether voluntarily or
involuntarily, by set-off, pursuant to events or proceedings of the
nature referred to in Section 9(f), or otherwise), in a greater proportion than
any such payment to or collateral received by any other Lender, if any, in
respect of the Obligations under the Loan Documents owing to such other Lender,
such Benefitted Lender shall purchase for cash from the other Lenders a
participating interest in such portion of the Obligations under the Loan 

 91
 

Documents
owing to each such other Lender, or shall provide such other Lenders with the
benefits of any such collateral, as shall be necessary to cause such Benefitted
Lender to share the excess payment or benefits of such collateral ratably with
each of the Lenders; provided, however, that if all or any portion of such
excess payment or benefits is thereafter recovered from such Benefitted Lender,
such purchase shall be rescinded, and the purchase price and benefits returned,
to the extent of such recovery, but without interest.

(b)             In addition to any rights and remedies of the
Lenders provided by law, each Lender shall have the right, without prior notice
to the Borrower, any such notice being expressly waived by the Borrower to the
extent permitted by applicable law, upon the occurrence and during the
continuance of an Event of Default under Section 9(a) hereof, to set off and
appropriate and apply against such amount any and all deposits (general or
special, time or demand, provisional or final), in any currency, and any other
credits, indebtedness or claims, in any currency, in each case whether direct
or indirect, absolute or contingent, matured or unmatured, at any time held or
owing by such Lender or any branch or agency thereof to or for the credit or
the account of  the Borrower, as the case
may be.  Each Lender agrees promptly to
notify the Borrower and the Administrative Agent after any such setoff and
application made by such Lender, provided that the failure to give such
notice shall not affect the validity of such setoff and application.

11.8.        Counterparts;
Electronic Execution.  This Agreement
may be executed in any number of counterparts and by different parties on
separate counterparts, each of which, when executed and delivered, shall be
deemed to be an original, and all of which, when taken together, shall
constitute but one and the same Agreement. 
Delivery of an executed counterpart of this Agreement by telefacsimile
or other electronic method of transmission shall be equally as effective as
delivery of an original executed counterpart of this Agreement.  Any party delivering an executed counterpart
of this Agreement by telefacsimile or other electronic method of transmission
also shall deliver an original executed counterpart of this Agreement but the
failure to deliver an original executed counterpart shall not affect the
validity, enforceability, and binding effect of this Agreement.  The foregoing shall apply to each other Loan
Document mutatis  mutandis.

11.9.        Severability.  Each provision of this Agreement shall be
severable from every other provision of this Agreement for the purpose of
determining the legal enforceability of any specific provision.

11.10.      Integration.  This Agreement, together with the other Loan
Documents, reflects the entire understanding of the parties with respect to the
transactions contemplated hereby and shall not be contradicted or qualified by
any other agreement, oral or written, before the date hereof.

11.11.      GOVERNING LAW.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 92

11.12.      Submission To Jurisdiction; Waivers.  The Borrower hereby irrevocably and
unconditionally:

(a)           submits for itself and its property
in any legal action or proceeding relating to this Agreement and the other Loan
Documents to which it is a party, or for recognition and enforcement of any
judgment in respect thereof, to the non-exclusive general jurisdiction of
the courts of the State of New York located in the City or County of New York,
the courts of the United States for the Southern District of New York, and
appellate courts from any thereof;

(b)           consents that any such action or
proceeding may be brought in such courts and waives any objection that it may
now or hereafter have to the venue of any such action or proceeding in any such
court or that such action or proceeding was brought in an inconvenient court
and agrees not to plead or claim the same;

(c)           agrees that service of process in any
such action or proceeding may be effected by mailing a copy thereof by
registered or certified mail (or any substantially similar form of mail),
postage prepaid, to the Borrower at its address set forth in Section 11.2 or at
such other address of which the Administrative Agent shall have been notified
pursuant thereto;

(d)           agrees that nothing herein shall
affect the right to effect service of process in any other manner permitted by
law or shall limit the right to sue in any other jurisdiction; and

(e)           waives, to the maximum extent not
prohibited by law, any right it may have to claim or recover in any legal
action or proceeding referred to in this Section any special, exemplary,
punitive or consequential damages.

11.13.      Acknowledgments.  The Borrower hereby acknowledges that:

(a)           it has been advised by counsel in the
negotiation, execution and delivery of this Agreement and the other Loan
Documents;

(b)           no Agent or Lender has any fiduciary
relationship with or duty to the Borrower arising out of or in connection with
this Agreement or any of the other Loan Documents, and the relationship between
the Administrative Agent and Lenders, on one hand, and the Borrower, on the
other hand, in connection herewith or therewith is solely that of debtor and
creditor; and

(c)           no joint venture is created hereby or
by the other Loan Documents or otherwise exists by virtue of the transactions
contemplated hereby among the Lenders or among the Borrower and the Lenders.

11.14.      Releases of Guarantees and Liens.  (a) 
Notwithstanding anything to the contrary contained herein or in any
other Loan Document, the Administrative Agent is hereby irrevocably authorized
by each Lender (without requirement of notice to or consent of any Lender
except as expressly required by Section 11.1) to take any action requested by
the 

 93
 

Borrower
having the effect of releasing any Collateral or guarantee obligations (i) to
the extent necessary to permit consummation of any transaction not prohibited
by any Loan Document or that has been consented to in accordance with Section
11.1 or (ii) under the circumstances described in paragraph (b) below.

(b)           At such time as the
Loans, the Reimbursement Obligations and the other Obligations under the Loan
Documents (other than unasserted contingent indemnification obligations and
Bank Product Obligations) shall have been paid in full, the Commitments have
been terminated and no Letters of Credit shall be outstanding, the Collateral
shall be released from the Liens created by the Security Documents, and the
Security Documents and all obligations (other than those expressly stated to
survive such termination) of the Administrative Agent and each Loan Party under
the Security Documents shall terminate, all without delivery of any instrument
or performance of any act by any Person, provided that, the
Administrative Agent agrees upon such termination to promptly deliver to the Borrower
UCC-3 termination statements, discharges of existing Mortgages, and other
release and termination documents as are reasonably requested by the Borrower
to discharge the Liens as a matter of public record.

11.15.      Confidentiality.  The Administrative Agent and Lenders each
individually (and not jointly or jointly and severally) agree that all material
non-public information regarding Borrower and its Subsidiaries, their
operations, assets, and existing and contemplated business plans shall be treated
by the Administrative Agent and the Lenders in a confidential manner, and shall
not be disclosed by the Administrative Agent and the Lenders to Persons who are
not parties to this Agreement, except: 
(a) to attorneys for and other advisors, accountants, auditors, and
consultants to any Lender (it being understood that the persons to whom such
disclosure is made will be informed of the confidential nature of such
information and the Administrative Agent or such Lender, as the case may be,
shall be responsible for the compliance of such person with this Section), (b)
to Subsidiaries and Affiliates of any Lenders (including the Bank Product
Providers), provided that any such Subsidiary or Affiliate shall have agreed to
receive such information hereunder subject to the terms of this Section
11.15, (c) as may be required by statute, decision, or judicial or
administrative order, rule, or regulation, (d) as may be agreed to in writing
in advance by Borrower or its Subsidiaries or as requested or required by any
Governmental Authority pursuant to any subpoena or other legal process, (e) as
to any such information that is or becomes generally available to the public
(other than as a result of prohibited disclosure by the Administrative Agent or
the Lenders), (f) in connection with any assignment, prospective assignment,
sale, prospective sale, participation or prospective participations, or pledge
or prospective pledge of any Lender’s interest under this Agreement, provided
that any such assignee, prospective assignee, purchaser, prospective purchaser,
participant, prospective participant, pledgee, or prospective pledgee shall
have agreed in writing to receive such information hereunder subject to the
terms of this Section, and (g) in connection with any litigation or other
adversary proceeding involving parties hereto which such litigation or
adversary proceeding involves claims related to the rights or duties of such
parties under this Agreement or the other Loan Documents.  The Administrative Agent and each Lender agrees
that in the event the Administrative Agent or such Lender, as the case may be,
is requested or required to disclose such information pursuant to clause (c) or
(d) above, the Administrative Agent or such Lender, as the case may be, shall,
to the extent practicable, provide the Borrower with notice of any such request
or requirement.  The provisions of this
Section 11.15 shall 

 94
 

survive
for two calendar years after the payment in full of the Obligations under the
Loan Documents.

11.16.      Revival and Reinstatement of
Obligations.  If the incurrence or
payment of the Obligations by the Borrower under the Loan Documents or the
transfer to the Lenders of any property should for any reason subsequently be
declared to be void or voidable under any sate or federal law relating to
creditors’ rights, including provisions of the Bankruptcy Code relating to
fraudulent conveyances, preferences, or other voidable or recoverable payments
of money or transfers of property (collectively, a “Voidable Transfer”),
and if the Lenders are required to repay or restore, in whole or in part, any
such Voidable Transfer, or elects to do so upon the reasonable advice of their
respective counsel, then, as to any Voidable Transfer, or the amount thereof
that the Lenders are required or elect to repay or restore, and as to all
reasonable costs, expenses and attorneys fees of the lenders related thereto,
the liability of the Borrower automatically shall be revived, reinstated, and
restored and shall exist as though such Voidable Transfer had never been made.

11.17.      WAIVERS
OF JURY TRIAL.  THE BORROWER,
THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

11.18.      [Intentionally Omitted].

11.19.      Borrower Acknowledgment of Prior
Obligations and Continuation Thereof. 
Borrower (a) consents to the amendment and restatement of the Original
Credit Agreement by this Agreement; (b) acknowledges and agrees that (i) its
obligations owing to Administrative Agent, and (ii) the prior grant or grants
(if any) of security interests in favor of the Administrative Agent, for the
benefit of the Lender Group, in its properties and assets, in each case under
each “Loan Document” (as defined in the Original Credit Agreement; hereinafter
referred to as the “Original Loan Documents”) to which it is a party
shall, except to the extent amended prior to the date hereof, be in respect of
the obligations of Borrower under this Agreement and the other Loan Documents;
(c) reaffirms (i) all of its obligations owing to the Lender Group, and (ii)
all prior grants (if any) of security interests in favor of the Lender Group,
or any member of the Lender Group, under each Original Loan Document and each
Loan Document, except to the extent amended prior to the date hereof; and (d)
agrees that, except as expressly amended hereby or as amended by the other Loan
Documents dated as of the date hereof, or, in the case of the Intercreditor
Agreement and Subordination Agreement (as each such term is defined in the
Original Credit Agreement), terminated, each of the Original Loan Documents to
which it is a party is and shall remain in full force and effect.  Borrower acknowledges that, as of the Initial
Borrowing Date, under the Original Credit Agreement: (i) the aggregate
outstanding principal amount of the “Revolving Loans” (as defined in the
Original Credit Agreement, hereinafter referred to as the “Original
Revolving Loans”) is $0, (ii) the accrued but unpaid interest on such
Original Revolving Loans and accrued fees is $0, (iii) the aggregate
outstanding principal amount of the Term Loan (as defined in the Original
Credit Agreement, hereinafter referred to as the “Original Term Loan”)
is $78,100,000, (iv) the accrued but unpaid interest on such Original Term Loan
is $0, and (v) the aggregate outstanding amount 

 95
 

of
Letters of Credit (as defined in the Original Credit Agreement, hereinafter
referred to as the “Original Letters of Credit”) is $6,672,000.  Borrower hereby confirms and agrees that all
outstanding principal, interest and fees (including such accrued and unpaid
principal, interest and fees set forth in the immediately preceding sentence)
and other obligations under the Original Credit Agreement immediately prior to
the Initial Borrowing Date shall, to the extent not paid on the Initial
Borrowing Date, from and after the Initial Borrowing Date, be, without
duplication, Obligations owing and payable pursuant to this Agreement (with
respect to all such amounts, payable on the first applicable payment date for
such type of payment following the Initial Borrowing Date as part of all other
amounts payable on such date) and the other Loan Documents as in effect from
time to time, shall accrue interest thereon as specified in this Agreement, and
shall be secured by this Agreement and the other Loan Documents.  Although Borrower has been informed of the
matters set forth herein and has acknowledged and agreed to same, it understands
that the Lender Group shall have no obligation to inform it of such matters in
the future or to seek its acknowledgement or agreement to future amendments or
modifications, and nothing herein shall create such a duty

11.20.      No Novation.  This Agreement does not extinguish the
obligations for the payment of money outstanding under the Original Credit
Agreement or discharge or release the obligations or the liens or priority of
any mortgage, pledge, security agreement or any other security therefor, except
to the extent amended prior to the date hereof. 
Nothing herein contained shall be construed as a substitution or
novation of the obligations outstanding under the Original Credit Agreement,
the other Original Loan Documents or instruments securing the same, which shall
remain in full force and effect, except as modified hereby or by instruments
executed concurrently herewith or, in the case of the Intercreditor Agreement
and Subordination Agreement (as each such term is defined in the Original
Credit Agreement), terminated.  Nothing
expressed or implied in this Agreement shall be construed as a release or other
discharge of Borrower from any of its obligations or liabilities under the
Original Credit Agreement or any of the security agreements, pledge agreements,
mortgages, guaranties or other loan documents executed in connection therewith,
except to the extent amended prior to the date hereof.  Borrower hereby (a) confirms and agrees that
each Original Loan Document (other than the Intercreditor Agreement and
Subordination Agreement (as each such term is defined in the Original Credit
Agreement)) to which it is a party that is not being amended and restated
concurrently herewith is, and shall continue to be, in full force and effect
and is hereby ratified and confirmed in all respects except that on and after
the Initial Borrowing Date, all references in any such Original Loan Document
to “the Credit Agreement”, “this Agreement”, “thereto”, “thereof”, “thereunder”
or words of like import referring to the Original Credit Agreement shall mean
the Original Credit Agreement as amended and restated by this Agreement; and
(b) confirms and agrees that to the extent that any such Original Loan Document
purports to assign or pledge to the Lender Group or to grant to the Lender
Group a security interest in or lien on, any collateral as security for the
obligations of Borrower from time to time existing in respect of the Original
Credit Agreement, such pledge or assignment or grant of the security interest
or lien is hereby ratified and confirmed in all respects.

11.21.      Delivery of Addenda.  Each initial Lender shall become a party to
this Agreement by delivering to the Administrative Agent an Addendum duly
executed by such Lender.

 96

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

	
  

  	
  EINSTEIN NOAH RESTAURANT GROUP, INC.

  (formerly known as NEW WORLD 

  RESTAURANT GROUP, INC.)

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Paul J.B. Murphy, III

  	
   

  
	
   

  	
  Name: Paul J.B. Murphy, III

  
	
   

  	
  Title: President and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO FOOTHILL, INC., as

  Administrative Agent, as L/C Arranger,

  and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Kevin P. Smith

  	
   

  
	
   

  	
  Name: Kevin P. Smith

  
	
   

  	
  Title: Vice President

  

[Signature Page to Credit
Agreement]EXHIBIT
10.2

 

AMENDED AND RESTATED 

GUARANTEE AND COLLATERAL AGREEMENT

made by

NEW WORLD RESTAURANT GROUP, INC.

and certain of its Subsidiaries

in favor of

WELLS FARGO
FOOTHILL, INC.,

as Administrative Agent

Dated as of June 28, 2007

 

TABLE OF
CONTENTS

	
  

  	
   

  	
  Page

  
	
  SECTION 1. DEFINED TERMS

  	
   

  	
  1

  
	
  1.1.

  	
  Definitions

  	
   

  	
  1

  
	
  1.2.

  	
  Other Definitional Provisions

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2. GUARANTEE

  	
   

  	
  5

  
	
  2.1.

  	
  Guarantee

  	
   

  	
  5

  
	
  2.2.

  	
  Right of Contribution

  	
   

  	
  6

  
	
  2.3.

  	
  No Subrogation

  	
   

  	
  6

  
	
  2.4.

  	
  Amendments, etc. with respect to the Borrower
  Obligations

  	
   

  	
  6

  
	
  2.5.

  	
  Guarantee Absolute and Unconditional

  	
   

  	
  7

  
	
  2.6.

  	
  Reinstatement

  	
   

  	
  7

  
	
  2.7.

  	
  Payments

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3. GRANT OF SECURITY INTEREST

  	
   

  	
  8

  
	
   

  	
   

  	
   

  
	
  SECTION 4. REPRESENTATIONS AND WARRANTIES

  	
   

  	
  9

  
	
  4.1.

  	
  Representations in Credit Agreement

  	
   

  	
  9

  
	
  4.2.

  	
  Title; No Other Liens

  	
   

  	
  9

  
	
  4.3.

  	
  Perfected First Priority Liens

  	
   

  	
  9

  
	
  4.4.

  	
  Jurisdiction of Organization; Chief Executive Office

  	
   

  	
  10

  
	
  4.5.

  	
  Inventory and Equipment

  	
   

  	
  10

  
	
  4.6.

  	
  Farm Products

  	
   

  	
  10

  
	
  4.7.

  	
  Pledged Securities

  	
   

  	
  10

  
	
  4.8.

  	
  Receivables

  	
   

  	
  10

  
	
  4.9.

  	
  Intellectual Property

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5. COVENANTS

  	
   

  	
  11

  
	
  5.1.

  	
  Covenants in Credit Agreement

  	
   

  	
  11

  
	
  5.2.

  	
  Delivery of Instruments and Chattel Paper

  	
   

  	
  11

  
	
  5.3.

  	
  Maintenance of Insurance

  	
   

  	
  11

  
	
  5.4.

  	
  Payment of Secured Obligations

  	
   

  	
  12

  
	
  5.5.

  	
  Maintenance of Perfected Security Interest; Further
  Documentation

  	
   

  	
  12

  
	
  5.6.

  	
  Changes in Name, etc.

  	
   

  	
  13

  
	
  5.7.

  	
  Notices

  	
   

  	
  13

  
	
  5.8.

  	
  Investment Property

  	
   

  	
  13

  
	
  5.9.

  	
  Receivables

  	
   

  	
  14

  
	
  5.10.

  	
  Intellectual Property

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6. INTERCOMPANY SUBORDINATION

  	
   

  	
  16

  
	
  6.1.

  	
  Subordination to Payment of Secured Obligations

  	
   

  	
  16

  
	
  6.2.

  	
  Subordination Upon any Distribution of Assets of the
  Grantors

  	
   

  	
  16

  
	
  6.3.

  	
  Payment of Intercompany Debt

  	
   

  	
  16

  
	
  6.4.

  	
  Payment Over to Administrative Agent

  	
   

  	
  16

  

 

 

	
  

  	
   

  	
  Page

  
	
  6.5.

  	
  Authorization to Administrative Agent

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7. REMEDIAL PROVISIONS

  	
   

  	
  17

  
	
  7.1.

  	
  Certain Matters Relating to Receivables

  	
   

  	
  17

  
	
  7.2.

  	
  Communications with Obligors; Grantors Remain Liable

  	
   

  	
  18

  
	
  7.3.

  	
  Pledged Stock

  	
   

  	
  18

  
	
  7.4.

  	
  Proceeds to be Turned Over to the Administrative
  Agent

  	
   

  	
  19

  
	
  7.5.

  	
  Application of Proceeds

  	
   

  	
  19

  
	
  7.6.

  	
  Code and Other Remedies

  	
   

  	
  19

  
	
  7.7.

  	
  Private Sales

  	
   

  	
  20

  
	
  7.8.

  	
  Deficiency

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8. THE ADMINISTRATIVE AGENT

  	
   

  	
  21

  
	
  8.1.

  	
  Administrative Agent’s Appointment as
  Attorney-in-Fact, etc.

  	
   

  	
  21

  
	
  8.2.

  	
  Duty of Administrative Agent

  	
   

  	
  22

  
	
  8.3.

  	
  Financing Statements

  	
   

  	
  23

  
	
  8.4.

  	
  Authority of Administrative Agent

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9. REAFFIRMATION

  	
   

  	
  23

  
	
  9.1

  	
  Reaffirmation and Consent

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 10. MISCELLANEOUS

  	
   

  	
  24

  
	
  10.1.

  	
  Amendments in Writing

  	
   

  	
  24

  
	
  10.2.

  	
  Notices

  	
   

  	
  24

  
	
  10.3.

  	
  No Waiver by Course of Conduct; Cumulative Remedies

  	
   

  	
  24

  
	
  10.4.

  	
  Enforcement Expenses; Indemnification

  	
   

  	
  25

  
	
  10.5.

  	
  Successors and Assigns

  	
   

  	
  25

  
	
  10.6.

  	
  Set-Off

  	
   

  	
  25

  
	
  10.7

  	
  Further Assurances

  	
   

  	
  26

  
	
  10.8.

  	
  Counterparts

  	
   

  	
  26

  
	
  10.9.

  	
  Severability

  	
   

  	
  26

  
	
  10.10.

  	
  Section Headings

  	
   

  	
  26

  
	
  10.11.

  	
  Integration

  	
   

  	
  26

  
	
  10.12.

  	
  GOVERNING LAW

  	
   

  	
  26

  
	
  10.13.

  	
  Submission To Jurisdiction; Waivers

  	
   

  	
  26

  
	
  10.14.

  	
  Acknowledgments

  	
   

  	
  27

  
	
  10.15.

  	
  Additional Grantors

  	
   

  	
  27

  
	
  10.16.

  	
  Releases

  	
   

  	
  27

  
	
  10.17.

  	
  WAIVER OF JURY TRIAL

  	
   

  	
  28

  
	
  10.18.

  	
  Bank Product Providers

  	
   

  	
  28

  

 

SCHEDULES

	
  Schedule 1

  	
  Notice Addresses

  
	
  Schedule 2

  	
  Investment Property

  
	
  Schedule 3

  	
  Perfection Matters

  
	
  Schedule 4

  	
  Jurisdictions of Organization and Chief Executive
  Offices

  
	
  Schedule 5

  	
  Inventory and Equipment Locations

  
	
  Schedule 6

  	
  Intellectual Property

  

 

AMENDED AND RESTATED GUARANTEE AND COLLATERAL
AGREEMENT, dated as of June 28, 2007 (this “Agreement”), made by
each of the signatories hereto (together with any other entity that may become
a party hereto as provided herein, the “Grantors”), in favor of WELLS
FARGO FOOTHILL, INC., as administrative agent (in such capacity, the “Administrative
Agent”) for the Secured Parties (as hereinafter defined).

W I T N E S S E T H:

WHEREAS, pursuant to the Amended and Restated Credit
Agreement, dated as of June 28, 2007 (as amended, supplemented, revised,
replaced, restated or otherwise modified from time to time, the “Credit
Agreement”), among Einstein Noah Restaurant Group, Inc., a Delaware
corporation (formerly known as New World Restaurant Group, Inc.) (the “Borrower”),
the Lenders, and the Administrative Agent, the Lenders have severally agreed to
make extensions of credit to the Borrower upon the terms and subject to the
conditions set forth therein;

WHEREAS, the Borrower is a member of an affiliated
group of companies that includes each other Grantor;

WHEREAS, the Grantors and the Administrative Agent
entered into the Guarantee and Collateral Agreement, dated as of January 26,
2006 (as amended, supplemented, revised, replaced, restated or otherwise
modified from time to time prior to the date hereof, the “Original Guarantee
and Collateral Agreement”); and

WHEREAS, it is a condition precedent to the obligation
of the Lenders under the Credit Agreement that the Grantors shall have amended
and restated the Original Guarantee and Collateral Agreement for the ratable
benefit of the Secured Parties as set forth herein;

NOW, THEREFORE, in consideration of the premises and
to induce the Administrative Agent and the Lenders to enter into the Credit
Agreement and to induce the Lenders to make their respective extensions of
credit to the Borrower thereunder and to induce Bank Product Providers to enter
into Bank Product Agreements, as the case may be, each Grantor hereby agrees
with the Administrative Agent, for the ratable benefit of the Secured Parties,
that the Original Guaranty and Collateral Agreement is hereby amended and
restated as follows:

SECTION 1.  DEFINED TERMS

1.1.Definitions.  (a) 
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement,
and the following terms which are defined in the New York UCC on the date
hereof are used herein as so defined: 
Accounts, Chattel Paper, Documents, Equipment, Farm Products, General
Intangibles, Goods, Instruments, Inventory and Investment Property.

(b)           The following terms
shall have the following meanings:

“Agreement”: 
this Amended and Restated Guarantee and Collateral Agreement, as the
same may be amended, supplemented, revised, restated or otherwise modified from
time to time.

“Borrower Obligations”:  the Obligations.

“Collateral”: 
as defined in Section 3.

“Collateral Account”:  any collateral account established by the
Administrative Agent as provided in Section 7.1 or 7.4.

“Copyrights”: 
(i) all copyrights arising under the laws of the United States, any
other country or any political subdivision thereof, whether registered or
unregistered and whether published or unpublished (including, without
limitation, those listed in Schedule 6), all registrations and
recordings thereof, and all applications in connection therewith, including,
without limitation, all registrations, recordings and applications in the
United States Copyright Office, and (ii) the right to obtain all renewals
thereof.

“Copyright Licenses”:  any written agreement naming any Grantor as
licensor or licensee (including, without limitation, those listed in Schedule 6),
granting any right under any Copyright, including, without limitation, the
grant of rights to manufacture, distribute, exploit and sell materials derived
from any Copyright.

“Copyright Security Agreement” means each
Copyright Security Agreement among Grantors, or any of them, and Administrative
Agent, for the benefit of the Lender Group and the Bank Product Provider, in
substantially the form of Annex III attached hereto, pursuant to which Grantors
have granted to Administrative Agent, for the benefit of the Lender Group and
the Bank Product Provider, a security interest in all their respective
Copyrights.

“Deposit Account”:  as defined in the Uniform Commercial Code of
any applicable jurisdiction and, in any event, including, without limitation,
any demand, time, savings, passbook or like account maintained with a
depositary institution.

“Foreign Subsidiary Voting Stock”:  the voting Capital Stock of any Excluded
Foreign Subsidiary.

“Funding Office”:  the office of the Administrative Agent
specified in Section 11.2 of the Credit Agreement, or such other office as
the Administrative Agent may designate in writing.

“Guarantor Obligations”:  with respect to any Guarantor, the
Indebtedness of such Guarantor to Administrative Agent, for the ratable benefit
of the Secured Parties, pursuant to Section 2 of this Agreement
(including any portion of the foregoing that accrues after the commencement of
an Insolvency Proceeding, regardless of whether allowed or allowable in whole
or in part as a claim in any such Insolvency Proceeding).

“Guarantors”: 
the collective reference to each Grantor other than the Borrower.

 2
 

“Intellectual Property”:  the collective reference to all rights,
priorities and privileges relating to any and all intellectual property,
whether arising under United States, multinational or foreign laws or
otherwise, including, without limitation, the Copyrights, the Copyright
Licenses, the Patents, the Patent Licenses, the Trademarks and the Trademark
Licenses, and all rights to sue at law or in equity for any infringement or
other impairment thereof, including the right to receive all proceeds and
damages therefrom.

“Intercompany Debt”:  with respect to each Grantor, all
indebtedness, liabilities, and other obligations of any other Grantor owing to
such Grantor in respect of any and all loans or advances made by such Grantor
to such other Grantor whether now existing or hereafter arising, and whether
due or to become due, absolute or contingent, liquidated or unliquidated,
determined or undetermined, including all fees and all other amounts payable by
any other Grantor to such Grantor under or in connection with any documents or
instruments related thereto.

“Intercompany Note”:  any promissory note evidencing loans made by
any Grantor to any of its Subsidiaries or other Indebtedness owing by any of
its Subsidiaries to any Grantor.

“Investment Property”:  the collective reference to (i) all “investment
property” as such term is defined in Section 9-102(a)(49) of the New York
UCC (other than any Foreign Subsidiary Voting Stock excluded from the
definition of  “Pledged Stock”) and
(ii) whether or not constituting “investment property” as so defined, all
Pledged Notes and all Pledged Stock.

“Issuers”: 
the collective reference to each issuer of any Investment Property.

“New York UCC”: 
the Uniform Commercial Code as from time to time in effect in the State
of New York.

“Patents”: 
(i) all letters patent of the United States, any other country or
any political subdivision thereof, all reissues and extensions thereof and all
goodwill associated therewith, including, without limitation, any of the
foregoing referred to in Schedule 6, (ii) all applications for
letters patent of the United States or any other country and all divisions,
continuations and continuations-in-part thereof, including, without limitation,
any of the foregoing referred to in Schedule 6, and (iii) all rights
to obtain any reissues or extensions of the foregoing.

“Patent License”:  all written agreements providing for the
grant by or to any Grantor of any right to manufacture, use or sell any
invention covered in whole or in part by a Patent, including, without
limitation, any of the foregoing referred to in Schedule 6.

“Patent Security Agreement” means each Patent
Security Agreement among Grantors, or any of them, and Administrative Agent,
for the benefit of the Lender Group and the Bank Product Provider, in
substantially the form of Annex IV attached hereto, pursuant to which Grantors
have granted to Administrative Agent, for the benefit of the Lender Group and
the Bank Product Provider, a security interest in all their respective Patents.

 3
 

“Pledged Notes”:  all promissory notes listed on Schedule 2,
all Intercompany Notes at any time issued to any Grantor and all other
promissory notes issued to or held by any Grantor (other than promissory notes
issued in connection with extensions of trade credit by any Grantor in the
ordinary course of business or any promissory note evidencing Investments
permitted by Section 8.8(d) of the Credit Agreement).

“Pledged Securities”:  the collective reference to the Pledged Notes
and the Pledged Stock.

“Pledged Stock”:  the shares of Capital Stock listed on Schedule 2,
together with any other shares, stock certificates, options, interests or
rights of any nature whatsoever in respect of the Capital Stock of any Person
that may be issued or granted to, or held by, any Grantor while this Agreement
is in effect; provided that in no event shall more than 65% of the total
outstanding Foreign Subsidiary Voting Stock of any Excluded Foreign Subsidiary
be required to be pledged hereunder.

“Proceeds”: 
all “proceeds” as such term is defined in Section 9-102(a)(64) of
the New York UCC on the date hereof and, in any event, shall include, without
limitation, all dividends or other income from the Investment Property,
collections thereon or distributions or payments with respect thereto.

“Receivable”: 
any right to payment for goods sold or leased or for services rendered,
whether or not such right is evidenced by an Instrument or Chattel Paper and
whether or not it has been earned by performance (including, without
limitation, any Account).

“Securities Act”:  the Securities Act of 1933, as amended.

“Secured Obligations” means, collectively, the
Borrower Obligations and the Guarantor Obligations.

“Secured Parties”:  the collective reference to the
Administrative Agent, the Lenders and any Bank Product Provider.

“Trademarks”: 
(i) all trademarks, trade names, corporate names, company names,
business names, fictitious business names, trade styles, service marks, logos
and other source or business identifiers, and all goodwill associated therewith,
now existing or hereafter adopted or acquired, all registrations and recordings
thereof, and all applications in connection therewith, whether in the United
States Patent and Trademark Office or in any similar office or agency of the
United States, any State thereof or any other country or any political
subdivision thereof, or otherwise, and all common-law rights related thereto,
including, without limitation, any of the foregoing referred to in Schedule 6,
and (ii) the right to obtain all renewals thereof.

“Trademark License”:  any written agreement providing for the grant
by or to any Grantor of any right to use any Trademark, including, without
limitation, any of the foregoing referred to in Schedule 6.

“Trademark Security Agreement” means each Trademark
Security Agreement among Grantors, or any of them, and Administrative Agent,
for the benefit of the Lender Group

 4
 

and the Bank Product Provider, in substantially the
form of Annex V attached hereto, pursuant to which Grantors have granted to
Administrative Agent, for the benefit of the Lender Group and the Bank Product
Provider, a security interest in all their respective Trademarks.

1.2.Other Definitional Provisions.  (a) 
The words “hereof,” “herein”, “hereto” and “hereunder” and words of
similar import when used in this Agreement shall refer to this Agreement as a
whole and not to any particular provision of this Agreement, and Section and
Schedule references are to this Agreement unless otherwise specified.

(b)           The meanings given
to terms defined herein shall be equally applicable to both the singular and
plural forms of such terms.

(c)           Where the context
requires, terms relating to the Collateral or any part thereof, when used in
relation to a Grantor, shall refer to such Grantor’s Collateral or the relevant
part thereof.

SECTION 2.  GUARANTEE

2.1.Guarantee. 
(a)  Each of the Guarantors
hereby, jointly and severally, unconditionally and irrevocably, guarantees to
the Administrative Agent, for the ratable benefit of the Secured Parties and
their respective successors, indorsees, transferees and assigns, the prompt and
complete payment and performance by the Borrower when due (whether at the
stated maturity, by acceleration or otherwise) of the Borrower Obligations.

(b)           Anything herein or
in any other Loan Document to the contrary notwithstanding, the maximum
liability of each Guarantor hereunder and under the other Loan Documents shall
in no event exceed the amount which can be guaranteed by such Guarantor under
applicable federal and state laws relating to the insolvency of debtors (after
giving effect to the right of contribution established in Section 2.2).

(c)           Each Guarantor
agrees that the Borrower Obligations may at any time and from time to time
exceed the amount of the liability of such Guarantor hereunder without
impairing the guarantee contained in this Section 2 or affecting the rights and
remedies of any Secured Party hereunder.

(d)           The guarantee
contained in this Section 2 shall remain in full force and effect until the
conditions set forth in Section 9.15 shall have been satisfied, notwithstanding
that from time to time during the term of the Credit Agreement the Borrower may
be free from any Borrower Obligations.

(e)           No payment made by
the Borrower, any of the Guarantors, any other guarantor or any other Person or
received or collected by any Secured Party from the Borrower, any of the
Guarantors, any other guarantor or any other Person by virtue of any action or
proceeding or any set-off or appropriation or application at any time or from time
to time in reduction of or in payment of the Borrower Obligations shall be
deemed to modify, reduce, release or otherwise affect the liability of any
Guarantor hereunder which shall, notwithstanding any such payment (other than
any payment made by such Guarantor in respect of the Borrower Obligations or
any payment received or collected from such Guarantor in respect of the
Borrower Obligations),

 5
 

remain liable
for the Borrower Obligations up to the maximum liability of such Guarantor
hereunder until the conditions set forth in Section 9.15 shall have been
satisfied.

2.2.Right of Contribution.  Each Guarantor hereby agrees that to the
extent that a Guarantor shall have paid more than its proportionate share of
any payment made hereunder, such Guarantor shall be entitled to seek and
receive contribution from and against any other Guarantor hereunder which has
not paid its proportionate share of such payment.  Each Guarantor’s right of contribution shall
be subject to the terms and conditions of Section 2.3.  The provisions of this Section 2.2 shall
in no respect limit the obligations and liabilities of any Guarantor to the
Secured Parties, and each Guarantor shall remain liable to the Secured Parties
for the full amount guaranteed by such Guarantor hereunder.

2.3.No Subrogation.  Notwithstanding any payment made by any
Guarantor hereunder or any set-off or application of funds of any Guarantor by
any Secured Party, no Guarantor shall be entitled to be subrogated to any of
the rights of any Secured Party against the Borrower or any other Guarantor or
any collateral security or guarantee or right of offset held by any Secured
Party for the payment of the Borrower Obligations, nor shall any Guarantor seek
or be entitled to seek any contribution or reimbursement from the Borrower or
any other Guarantor in respect of payments made by such Guarantor hereunder, in
either case, until all amounts owing to the Secured Parties by the Borrower on
account of the Borrower Obligations are paid in full, no Letter of Credit shall
be outstanding and the Commitments under the Facilities are terminated.  If any amount shall be paid to any Guarantor
on account of such subrogation rights at any time when all of the Borrower
Obligations shall not have been paid in full, such amount shall be held by such
Guarantor in trust for the Secured Parties, segregated from other funds of such
Guarantor, and shall, forthwith upon receipt by such Guarantor, be turned over
to the Administrative Agent in the exact form received by such Guarantor (duly
indorsed by such Guarantor to the Administrative Agent, if required), to be
applied against the Borrower Obligations, whether matured or unmatured in
accordance with the provisions of Section 7.5 hereof.

2.4.Amendments, etc. with respect to the Borrower Obligations.  Each Guarantor shall remain obligated
hereunder notwithstanding that, without any reservation of rights against any
Guarantor and without notice to or further assent by any Guarantor, any demand
for payment of any of the Borrower Obligations made by any Secured Party may be
rescinded by such Secured Party and any of the Borrower Obligations continued,
and the Borrower Obligations, or the liability of any other Person upon or for
any part thereof, or any collateral security or guarantee therefor or right of
offset with respect thereto, may, from time to time, in whole or in part, be
renewed, extended, amended, modified, accelerated, compromised, waived,
surrendered or released by any Secured Party, and the Credit Agreement and the
other Loan Documents, any Bank Product Agreement, and any other documents
executed and delivered in connection therewith may be amended, modified,
supplemented or terminated, in whole or in part, as the Borrower, the
Administrative Agent (or the Required Lenders or all Lenders, as the case may
be) may deem advisable from time to time, and any collateral security,
guarantee or right of offset at any time held by the Administrative Agent or
any Secured Party for the payment of the Borrower Obligations may be sold,
exchanged, waived, surrendered or released. 
Neither the Administrative Agent nor any Secured Party shall have any
obligation to protect, secure, perfect

 6
 

or insure any Lien at any time held by it as security
for the Borrower Obligations or for the guarantee contained in this
Section 2 or any property subject thereto.

2.5.Guarantee Absolute and Unconditional.  Each Guarantor waives any and all notice of
the creation, renewal, extension or accrual of any of the Borrower Obligations
and notice of or proof of reliance by any Secured Party upon the guarantee
contained in this Section 2 or acceptance of the guarantee contained in this
Section 2; the Borrower Obligations, and any of them, shall conclusively be
deemed to have been created, contracted or incurred, or renewed, extended,
amended or waived, in reliance upon the guarantee contained in this Section 2;
and all dealings between the Borrower and any of the Guarantors, on the one
hand, and the Secured Parties, on the other hand, likewise shall be
conclusively presumed to have been had or consummated in reliance upon the
guarantee contained in this Section 2. 
To the extent permitted by applicable law, each Guarantor waives
diligence, presentment, protest, demand for payment and notice of default or
nonpayment to or upon the Borrower or any of the Guarantors with respect to the
Borrower Obligations.  Each Guarantor
understands and agrees that, to the extent permitted by applicable law, the
guarantee contained in this Section 2 shall be construed as a continuing,
absolute and unconditional guarantee of payment without regard to (1) the
validity or enforceability of the Credit Agreement or any other Loan Document,
any of the Borrower Obligations or any other collateral security therefor or
guarantee or right of offset with respect thereto at any time or from time to
time held by any Secured Party, (2) any defense, set-off or counterclaim (other
than a defense of payment or performance) which may at any time be available to
or be asserted by the Borrower or any other Person against any Secured Party,
or (3) any other circumstance whatsoever (other than a defense of performance)
(with or without notice to or knowledge of the Borrower or such Guarantor)
which constitutes, or might be construed to constitute, an equitable or legal
discharge of the Borrower for the Borrower Obligations, or of such Guarantor
under the guarantee contained in this Section 2, in bankruptcy or in any other
instance.  When making any demand
hereunder or otherwise pursuing its rights and remedies hereunder against any
Guarantor, any Secured Party may, but shall be under no obligation to, make a
similar demand on or otherwise pursue such rights and remedies as it may have
against the Borrower, any other Guarantor or any other Person or against any
collateral security or guarantee for the Borrower Obligations or any right of
offset with respect thereto, and any failure by any Secured Party to make any
such demand, to pursue such other rights or remedies or to collect any payments
from the Borrower, any other Guarantor or any other Person or to realize upon
any such collateral security or guarantee or to exercise any such right of
offset, or any release of the Borrower, any other Guarantor or any other Person
or any such collateral security, guarantee or right of offset, shall not
relieve any Guarantor of any obligation or liability hereunder, and shall not
impair or affect the rights and remedies, whether express, implied or available
as a matter of law, of any Secured Party against any Guarantor.  For the purposes hereof ”demand” shall
include the commencement and continuance of any legal proceedings.

2.6.Reinstatement.  The guarantee contained in this Section 2
shall continue to be effective, or be reinstated, as the case may be, if at any
time payment, or any part thereof, of any of the Borrower Obligations is
rescinded or must otherwise be restored or returned by any Secured Party upon
the insolvency, bankruptcy, dissolution, liquidation or reorganization of the
Borrower or any Guarantor, or upon or as a result of the appointment of a
receiver, intervenor or conservator of, or trustee or similar officer for, the
Borrower or any Guarantor or any substantial part of its property, or
otherwise, all as though such payments had not been made.

 7
 

2.7.Payments. 
Each Guarantor hereby guarantees that payments hereunder will be paid to
the Administrative Agent without set-off or counterclaim in Dollars at the
Funding Office.

SECTION 3.  GRANT OF SECURITY INTEREST

Each Grantor hereby assigns and transfers to the
Administrative Agent, and hereby grants to the Administrative Agent, for the
ratable benefit of the Secured Parties, a security interest in all of the
following property now owned or at any time hereafter acquired by such Grantor
or in which such Grantor now has or at any time in the future may acquire any
right, title or interest (collectively, the “Collateral”), as collateral
security for the prompt and complete payment and performance when due (whether
at the stated maturity, by acceleration or otherwise) of such Grantor’s Secured
Obligations:

(a)           all Accounts;

(b)           all Chattel Paper;

(c)           all  Deposit Accounts;

(d)           all Documents;

(e)           all Equipment;

(f)            all  General Intangibles;

(g)           all Instruments;

(h)           all Intellectual
Property;

(i)            all Inventory;

(j)            all Investment
Property;

(k)           all Goods and other
property not otherwise described above;

(l)            all books and
records pertaining to the Collateral; and

(m)          to the extent not
otherwise included, all Proceeds and products of any and all of the foregoing
and all collateral security and guarantees given by any Person with respect to
any of the foregoing; provided, however, that notwithstanding any of the
other provisions set forth in this Section 3, this Agreement shall not
constitute a grant of a security interest in any property to the extent that
such grant of a security interest is prohibited by any Requirements of Law of a
Governmental Authority, requires a consent not obtained of any Governmental
Authority pursuant to such Requirement of Law or is prohibited by, or constitutes
a breach or default under or results in the termination of or requires any
consent not obtained under, any contract, license, agreement, instrument or
other document evidencing or giving rise to such property or, in the case of
any Investment Property, Pledged Stock or Pledged Note, any applicable
shareholder or similar agreement, except to the extent that such Requirement of
Law or the term in such

 8
 

contract,
license, agreement, instrument or other document or shareholder or similar
agreement providing for such prohibition, breach, default or termination or
requiring such consent is ineffective under applicable law.

SECTION 4.  REPRESENTATIONS AND WARRANTIES

To induce the Administrative Agent and the Lenders to
enter into the Credit Agreement and to induce the Lenders to make their
respective extensions of credit to the Borrower thereunder and to induce the
Bank Product Providers to enter into the Bank Product Agreements, each Grantor
hereby represents and warrants (in the case of the Borrower, such representations
and warranties being limited to itself and its Subsidiaries) to the
Administrative Agent and each Lender that:

4.1.Representations in Credit Agreement.  In the case of each Guarantor, the
representations and warranties set forth in Section 5 of the Credit Agreement
as they relate to such Guarantor or to the Loan Documents to which such
Guarantor is a party, each of which is hereby incorporated herein by reference,
are true and correct in all material respects, and each Secured Party shall be
entitled to rely on each of them as if they were fully set forth herein,
provided that each reference in each such representation and warranty to the
Borrower’s or to any Loan Party’s knowledge shall, for the purposes of this
Section 4.1, be deemed to be a reference to such Guarantor’s knowledge.

4.2.Title; No Other Liens.  Except for the security interest granted to
the Administrative Agent for the ratable benefit of the Secured Parties
pursuant to this Agreement and the other Liens permitted to exist on the
Collateral by the Credit Agreement, such Grantor owns each item of its
Collateral free and clear of any and all Liens or claims of others.  No financing statement or other public notice
with respect to all or any part of the Collateral is on file or of record in
any public office, except such as have been filed in favor of the
Administrative Agent, for the ratable benefit of the Secured Parties, pursuant
to this Agreement or as are permitted by the Credit Agreement.  For the avoidance of doubt, it is understood
and agreed that any Grantor may, as part of its business, grant licenses to
third parties to use Intellectual Property owned or developed by a
Grantor.  For purposes of this Agreement
and the other Loan Documents, such licensing activity shall not constitute a “Lien”
on such Intellectual Property.  Each
Secured Party understands that any such licenses may be exclusive to the
applicable licensees, and such exclusivity provisions may limit the ability of
the Administrative Agent to utilize, sell, Lease or transfer the related
Intellectual Property or otherwise realize value from such Intellectual
Property pursuant hereto.

4.3.Perfected First Priority Liens.  The security interests granted pursuant to
this Agreement upon completion of the filings and other actions specified on
Schedule 3 (which, in the case of all filings and other documents referred
to on said Schedule, have been delivered to the Administrative Agent in
completed and duly executed form) will constitute valid perfected security interests,
to the extent a security interest may be perfected therein under the New York
UCC, in all of the Collateral in favor of the Administrative Agent, for the
ratable benefit of the Secured Parties, as collateral security for such Grantor’s
Secured Obligations, enforceable in accordance with the terms hereof against
all creditors of such Grantor and any Persons purporting to purchase any
Collateral from such Grantor and are prior to all other Liens on the

 9
 

Collateral in existence on the date hereof except for
unrecorded Liens permitted by the Credit Agreement which have priority over the
Liens on the Collateral by operation of law.

4.4.Jurisdiction of Organization; Chief Executive
Office.  On the date hereof, such
Grantor’s jurisdiction of organization, identification number from the
jurisdiction of organization (if any), and the location of such Grantor’s chief
executive office or sole place of business are specified on Schedule 4.  Such Grantor has furnished to the
Administrative Agent a certified charter, certificate of incorporation or other
organization document and long form good standing certificate as of a date
which is recent to the date hereof.

4.5.Inventory and Equipment.  On the date hereof, the Inventory and the
Equipment of such Grantor (other than mobile goods) are kept at the locations
listed on Schedule 5.

4.6.Farm Products.  None of such Grantor’s Collateral
constitutes, or is the Proceeds of, Farm Products.

4.7.Pledged Securities.  (a) 
The shares of Pledged Stock pledged by such Grantor hereunder constitute
all the issued and outstanding shares of all classes of the Capital Stock of
each Issuer owned by such Grantor or, in the case of Foreign Subsidiary Voting
Stock, if less, 65% of the issued and outstanding shares of all classes of
Foreign Subsidiary Voting Stock of each relevant Issuer.

(b)           All the shares of
the Pledged Stock owned by such Pledgor have been duly and validly issued and
are fully paid and nonassessable.

(c)           To such Grantor’s
knowledge, each of the Pledged Notes constitutes the legal, valid and binding
obligation of the obligor with respect thereto, enforceable in accordance with
its terms, subject to the effects of bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium and other similar laws relating to or
affecting creditors’ rights generally, general equitable principles (whether
considered in a proceeding in equity or at law) and an implied covenant of good
faith and fair dealing.

(d)           Such Grantor is the
record and beneficial owner of, and has good title to, the Investment Property
pledged by it hereunder, free of any and all Liens or options in favor of, or
claims of, any other Person, except the security interest created by this
Agreement or Liens arising by operation of law.

4.8.Receivables.  No amount payable to such Grantor under or in
connection with any Receivable is evidenced by any Instrument or Chattel Paper
which has not been delivered to the Administrative Agent (except as provided in
Section 5.2).

4.9.Intellectual Property.  (a) 
Schedule 6 lists all Intellectual Property that is registered or for
which registrations are pending owned by such Grantor in its own name on the
date hereof.

(b)           On the date hereof,
all material Intellectual Property of such Grantor described on Schedule 6
is valid, subsisting, unexpired and enforceable (excepting for any pending
applications), has not been abandoned, and does not, to the knowledge of
Grantor, infringe the Intellectual Property rights of any other Person in any
material respect.

 10

(c)           Except as set forth
in Schedule 6, on the date hereof, none of the Intellectual
Property is the subject of any licensing or franchise agreement, other than
licensing or franchise agreements entered into by Grantor as part of its
ordinary course of business, pursuant to which such Grantor is the licensor or
franchisor.

(d)           No holding, decision
or judgment has been rendered by any Governmental Authority which would limit,
cancel or question the validity of, or such Grantor’s rights in, any
Intellectual Property in any respect that could reasonably be expected to have
a Material Adverse Effect.

(e)           No action or
proceeding is pending, or, to the knowledge of such Grantor, threatened, on the
date hereof (1) seeking to limit, cancel or question the validity of any
Intellectual Property or such Grantor’s ownership interest therein, or
(2) which, if adversely determined, would have a Material Adverse Effect
on the value of any Intellectual Property.

(f)            Upon request of
Administrative Agent, in order to facilitate filings with the United States
Patent and Trademark Office and the United States Copyright Office, each
Grantor shall execute and deliver to Administrative Agent one or more Copyright
Security Agreements, Trademark Security Agreements, or Patent Security Agreements
to further evidence Administrative Agent’s Lien on such Grantor’s Patents,
Trademarks, or Copyrights, and the General Intangibles of such Grantor relating
thereto or represented thereby

SECTION 5.  COVENANTS

Each Grantor covenants and agrees with the Secured
Parties that, from and after the date of this Agreement until the Secured
Obligations shall have been paid in full, no Letter of Credit shall be
outstanding and the Commitments under the Facilities shall have terminated:

5.1.Covenants in Credit Agreement.  In the case of each Guarantor, such Guarantor
shall take, or shall refrain from taking, as the case may be, each action that
is necessary to be taken or not taken, as the case may be, so that no Default
or Event of Default is caused by the failure to take such action or to refrain
from taking such action by such Guarantor or any of its Subsidiaries.

5.2.Delivery of Instruments and Chattel Paper.  If any amount payable under or in connection
with any of the Collateral shall be or become evidenced by any Instrument,
Certificated Security or Chattel Paper, such Instrument, Certificated Security
or Chattel Paper shall be, immediately following the reasonable request of the
Administrative Agent, delivered to the Administrative Agent, duly indorsed in a
manner satisfactory to the Administrative Agent, to be held as Collateral
pursuant to this Agreement, provided that, no Grantor will be required
to deliver any Instrument or Chattel Paper with a value of $75,000 or less
unless an Event of Default has occurred and is continuing and the
Administrative Agent has requested delivery of such Instrument or Chattel
Paper.

5.3.Maintenance of Insurance.  (a) 
Such Grantor will maintain, with financially sound and reputable
companies, insurance policies (i) insuring the Inventory and Equipment
against loss by fire, explosion, theft and such other casualties as may be
reasonably satisfactory to the

 11
 

Administrative Agent and (ii) to the extent
reasonably requested by the Administrative Agent, insuring such Grantor, the
Administrative Agent and the Secured Parties against liability for personal
injury and property damage relating to such Inventory and Equipment, such
policies to be in such form and amounts and having such coverage as may be
reasonably satisfactory to the Administrative Agent and the Lenders.

(b)           All such insurance
shall (i) provide that no cancellation, material reduction in amount or
material change in coverage thereof shall be effective until at least
30 days after receipt by the Administrative Agent of written notice
thereof, (ii) name the Administrative Agent as additional insured or loss
payee as its interest may appear, (iii) include deductibles consistent
with past practice or consistent with industry practice, (iv) if reasonably
requested by the Administrative Agent, include a breach of warranty clause and
(v) be reasonably satisfactory in all other respects to the Administrative
Agent.

(c)           If reasonably
requested by the Administrative Agent, the Borrower shall deliver to the
Administrative Agent and the Lenders a certificate of insurance of an insurance
broker with respect to such insurance substantially concurrently with the
delivery by the Borrower to the Administrative Agent of its audited financial
statements for each fiscal year.

5.4.Payment of Secured Obligations.  Such Grantor will pay and discharge or
otherwise satisfy at or before maturity or before they become delinquent, as
the case may be, all material taxes, assessments and governmental charges or
levies imposed upon such Grantor’s Collateral or in respect of income or
profits therefrom, as well as all material claims of any kind (including,
without limitation, claims for labor, materials and supplies) against or with
respect to such Grantor’s Collateral, except that no such charge need be paid
if the amount or validity thereof is currently being contested in good faith by
appropriate proceedings, reserves in conformity with GAAP with respect thereto
have been provided on the books of such Grantor.

5.5.Maintenance of Perfected Security Interest;
Further Documentation.  (a)  Such Grantor shall maintain the security
interest in such Grantor’s Collateral created by this Agreement as a perfected
security interest having at least the priority described in Section 4.3 and
shall defend such security interest against the claims and demands of all
Persons whomsoever.

(b)           Such Grantor will
furnish to the Administrative Agent and the Lenders from time to time,
statements and schedules further identifying and describing such Grantor’s
Collateral and such other reports in connection with such Grantor’s Collateral
as the Administrative Agent may reasonably request, all in reasonable detail.

(c)           At any time and from
time to time, upon the written request of the Administrative Agent, and at the
sole expense of such Grantor, such Grantor will promptly and duly execute and
deliver, and have recorded, such further instruments and documents and take
such further actions as the Administrative Agent may reasonably request for the
purpose of obtaining or preserving the full benefits of this Agreement and of
the rights and powers herein granted, including, without limitation,
(1) the filing of any financing or continuation statements under the
Uniform Commercial Code (or other similar laws) in effect in any jurisdiction
with respect to the security interests created hereby and (2) in the case
of  Investment Property, Deposit Accounts
and any

 12
 

other relevant
Collateral, taking any commercially reasonable actions to enable the
Administrative Agent to obtain “control” (within the meaning of the applicable
Uniform Commercial Code) with respect thereto.

5.6.Changes in Name, etc.  Such Grantor will not, except upon
15 days’ prior written notice to the Administrative Agent, (I) change its
jurisdiction of organization or the location of its chief executive office or
sole place of business from that referred to in Section 4.4 or (II) change
its name, identity or corporate structure to such an extent that any financing
statement filed by the Administrative Agent in connection with this Agreement
would become misleading and shall deliver promptly to the Administrative Agent
(1) all additional financing statements and other documents reasonably
requested by the Administrative Agent to maintain the validity, perfection and
priority of the security interests provided for herein and (2) if applicable, a
written supplement to Schedule 5 showing any additional location at which such
Grantor’s Inventory or Equipment shall be kept.

5.7.Notices. 
Such Grantor will promptly give notice to the Administrative Agent,
addressed to the Administrative Agent and the Lenders, in reasonable detail,
of:

(a)           any Lien (other than
security interests created hereby or Liens permitted under the Credit
Agreement) on any of such Grantor’s Collateral which would materially adversely
affect the ability of the Administrative Agent to exercise any of its remedies
hereunder; and

(b)           the occurrence of
any other event which would reasonably be expected to have a material adverse
effect on the security interests created hereby.

5.8.Investment Property.  (a)  If
such Grantor shall become entitled to receive or shall receive any stock
certificate (including, without limitation, any certificate representing a
stock dividend or a distribution in connection with any reclassification,
increase or reduction of capital or any certificate issued in connection with
any reorganization), option or rights in respect of the Capital Stock of any
Issuer, whether in addition to, in substitution of, as a conversion of, or in
exchange for, any shares of the Pledged Stock, or otherwise in respect thereof,
such Grantor shall accept the same as the agent of the Secured Parties, hold
the same in trust for the Secured Parties and deliver the same forthwith to the
Administrative Agent in the exact form received, duly indorsed by such Grantor
to the Administrative Agent, if required, together with an undated stock power
covering such certificate duly executed in blank by such Grantor and with, if
the Administrative Agent so requests, signature guaranteed, to be held by the
Administrative Agent, subject to the terms hereof, as additional collateral
security for the Grantor’s Secured Obligations. 
Other than any liquidation or dissolution permitted by Section 8.4(b) of
the Credit Agreement, any sums paid upon or in respect of the Investment
Property upon the liquidation or dissolution of any Issuer shall be paid over
to the Administrative Agent to be held by it hereunder as additional collateral
security for the Grantor’s Secured Obligations, and in case any distribution of
capital shall be made on or in respect of the Investment Property or any
property shall be distributed upon or with respect to the Investment Property
pursuant to the recapitalization or reclassification of the capital of any Issuer
or pursuant to the reorganization thereof, the property so distributed shall,
unless otherwise subject to a perfected security interest in favor of the
Administrative Agent, be delivered to the Administrative Agent to be held by it
hereunder as additional collateral security for such Grantor’s Secured
Obligations.  If any sums

 13
 

of money or property so paid or distributed in respect
of the Investment Property shall be received by such Grantor, such Grantor
shall, until such money or property is paid or delivered to the Administrative
Agent, hold such money or property in trust for the Secured Parties, segregated
from other funds of such Grantor, as additional collateral security for the
Grantor’s Secured Obligations.

(b)           Without the prior
written consent of the Administrative Agent, such Grantor will not (i) vote to
enable, or take any other action to permit, any Issuer to issue any stock or
other equity securities of any nature or to issue any other securities
convertible into or granting the right to purchase or exchange for any stock or
other equity securities of any nature of any Issuer (except as otherwise
permitted by the Credit Agreement), (ii) sell, assign, transfer, exchange, or
otherwise dispose of, or grant any option with respect to, the Investment
Property or Proceeds thereof (except pursuant to a transaction expressly
permitted by the Credit Agreement), (iii) create, incur or permit to exist any
Lien or option in favor of, or any claim of any Person with respect to, any of
the Investment Property or Proceeds thereof, or any interest therein, except
for the security interests created by this Agreement, as otherwise permitted by
the Credit Agreement or Liens arising by operation of law or (iv) enter into
any agreement or undertaking restricting the right or ability of such Grantor
or the Administrative Agent to sell, assign or transfer any of the Investment
Property or Proceeds thereof other than agreements permitted under Section 8.15
of the Credit Agreement.

(c)           In the case of each
Grantor which is an Issuer, such Issuer agrees that (i) it will be bound
by the terms of this Agreement relating to the Investment Property issued by it
and will comply with such terms insofar as such terms are applicable to it,
(ii) it will notify the Administrative Agent promptly in writing of the
occurrence of any of the events described in Section 5.8(a) with respect
to the Investment Property issued by it and (iii) the terms of
Sections 7.3(c) and 7.7 shall apply to it, mutatis  mutandis,
with respect to all actions that may be required of it pursuant to
Section 7.3(c) or 7.7 with respect to the Investment Property issued by
it.

5.9.Receivables.  Other than in the ordinary course of business
consistent with its past practice, such Grantor will not (i) grant any
extension of the time of payment of any Receivable, (ii) compromise or
settle any Receivable for less than the full amount thereof,
(iii) release, wholly or partially, any Person liable for the payment of
any Receivable, (iv) allow any credit or discount whatsoever on any
Receivable or (v) amend, supplement or modify any Receivable in any manner
that could adversely affect the value thereof.

5.10.Intellectual
Property.  (a)  Such Grantor (either itself or through
licensees) will (i) continue to use each Trademark that is material to
Grantor’s then current business in order to maintain such Trademark in full
force free from any claim of abandonment for non-use, (ii) maintain as in
the past the quality of products and services offered under such Trademark,
(iii) use such Trademark with the notices and legends required by
applicable Requirements of Law, (iv) not adopt or use any mark which is
confusingly similar or a colorable imitation of such Trademark unless the
Administrative Agent, for the ratable benefit of the Secured Parties, shall
obtain a perfected security interest in such mark pursuant to this Agreement,
and (v) not (and not permit any licensee or sublicensee thereof to) do any
act or knowingly omit to do any act whereby such Trademark may become invalidated
or impaired in any material way.

 14
 

(b)           Such Grantor (either
itself or through licensees) will not do any act, or omit to do any act,
whereby any Patent that is material to Grantor’s then current business may
become forfeited, abandoned or dedicated to the public.

(c)           Such Grantor (either
itself or through licensees) will not (and will not permit any licensee or
sublicensee thereof to) do any act or knowingly omit to do any act whereby any
portion of the Copyrights that is material to Grantor’s then current business
may become invalidated or otherwise impaired. 
Such Grantor will not (either itself or through licensees) do any act
whereby any portion of such Copyrights that is material to Grantor’s then
current business may fall into the public domain.

(d)           Such Grantor (either
itself or through licensees) will not do any act that knowingly uses any
material Intellectual Property to infringe the Intellectual Property rights of
any other Person.

(e)           Such Grantor will
notify the Administrative Agent in accordance with Section 5.7 immediately if
it knows, or has reason to know, that any application or registration relating
to any Intellectual Property that is material to Grantor’s then current
business may become forfeited, abandoned or dedicated to the public, or of any
adverse determination or development (including, without limitation, the
institution of, or any such determination or development in, any adversarial
proceeding with a third party in the United States Patent and Trademark Office,
the United States Copyright Office or any court or tribunal in any country)
regarding such Grantor’s ownership of, or the validity of, any Intellectual
Property that is material to Grantor’s then current business or such Grantor’s
right to register the same or to own and maintain the same.

(f)            Whenever such
Grantor, either by itself or through any agent, employee, licensee or designee,
files an application for the registration of any Intellectual Property with the
United States Patent and Trademark Office, the United States Copyright Office
or any similar office or agency in any other country or any political
subdivision thereof, such Grantor shall report such filing to the
Administrative Agent within 15 Business Days after the last day of the fiscal
quarter in which such filing occurs. 
Such Grantor shall execute and deliver, and have recorded, any and all
agreements, instruments, documents, and papers as the Administrative Agent may
reasonably request to evidence the Secured Parties’ security interest in any
Copyright, Patent or Trademark and the goodwill and general intangibles of such
Grantor relating thereto or represented thereby.

(g)            Such Grantor will
take all reasonable and necessary steps, including, without limitation, in any
proceeding before the United States Patent and Trademark Office, the United
States Copyright Office or any similar office or agency in any other country or
any political subdivision thereof, to maintain and pursue each application (and
to obtain the relevant registration) and to maintain each registration of the
Intellectual Property that is material to Grantor’s then current business,
including, without limitation, filing of applications for renewal, affidavits
of use and affidavits of incontestability.

(h)           In the event that
any Intellectual Property that is material to Grantor’s then current business
is infringed, misappropriated or diluted by a third party, such Grantor shall
take such

 15
 

actions as
such Grantor shall reasonably deem appropriate under the circumstances to
protect such Intellectual Property.

SECTION 6.  INTERCOMPANY SUBORDINATION

6.1.Subordination to Payment of Secured Obligations.  As to each Grantor, all payments on account
of an Intercompany Debt shall be subject, subordinate, and junior, in right of
payment and exercise of remedies, to the extent and in the manner set forth
herein, to the prior payment, in full, in cash or cash equivalents of the
Secured Obligations.

6.2.Subordination Upon any Distribution of Assets
of the Grantors.  As to each Grantor,
in the event of any payment or distribution of assets of any other Grantor of
any kind or character, whether in cash, property, or securities, upon the
dissolution, winding up, or total or partial liquidation or reorganization,
readjustment, arrangement, or similar proceeding relating to such other Grantor
or its property, whether voluntary or involuntary, or in bankruptcy,
insolvency, receivership, arrangement, or similar proceedings or upon an
assignment for the benefit of creditors, or upon any other marshaling or
composition of the assets and liabilities of such other Grantor, or otherwise,
(such events, collectively, the “Insolvency Events”):  (i) all amounts owing on account of the
Secured Obligations shall first be paid in full before any payment on account
of an Intercompany Debt is made; and (ii) to the extent permitted by applicable
law, any payment on account of an Intercompany Debt to which such Grantor would
be entitled except for the provisions hereof, shall be paid or delivered by the
trustee in bankruptcy, receiver, assignee for the benefit of creditors, or
other liquidating agent making such payment or distribution directly to
Administrative Agent for the benefit of the Lender Group for application to the
payment of the Secured Obligations in accordance with clause (i), after giving
effect to any concurrent payment or distribution or provision therefor to the
Lender Group or Administrative Agent for the benefit thereof in respect of such
Secured Obligations,

6.3.Payment of Intercompany Debt.  So long as no Event of Default has occurred
and is continuing, each Grantor may make, and each other Grantor shall be
entitled to accept and receive payments not prohibited, under the Credit
Agreement in respect of the Intercompany Debt; provided that upon the
occurrence and during the continuance of any Event of Default, at the election
of Administrative Agent, no Grantor shall make, and no other Grantor shall
accept or receive, any payment on account of an Intercompany Debt.

6.4.Payment Over to Administrative Agent.  In the event that, notwithstanding the
provisions of Sections 6.1, 6.2, and 6.3, any payment
on account of an Intercompany Debt shall be received in contravention of Sections 6.1,
6.2, and 6.3 by any Grantor before all Secured Obligations are
paid in full such any payment on account of an Intercompany Debt shall be held
in trust for the benefit of the Lender Group and shall be paid over or
delivered to Administrative Agent for application to the payment in full of all
Secured Obligations remaining unpaid to the extent necessary to give effect to
such Sections 6.1, 6.2, and 6.3, after giving effect
to any concurrent payments or distributions to Administrative Agent in respect
of the Secured Obligations.

6.5.Authorization to Administrative Agent.  If, while any Intercompany Debt is
outstanding, any Insolvency Event shall occur and be continuing with respect to
any Grantor or

 16
 

its property: 
(i) Administrative Agent hereby is irrevocably authorized and empowered
(in the name of each other Grantor or otherwise), but shall have no obligation,
to demand, sue for, collect, and receive every payment or distribution in
respect of the Intercompany Debt and give acquittance therefor and to file
claims and proofs of claim and take such other action (including voting the
Intercompany Debt) as it may deem necessary or advisable for the exercise or
enforcement of any of the rights or interests of Administrative Agent; and (ii)
each other Grantor shall promptly take such action as Administrative Agent may
request (a) to collect the Intercompany Debt for the account of the Lender
Group and to file appropriate claims or proofs of claim in respect of the
Intercompany Debt, (b) to execute and deliver to Administrative Agent such
powers of attorney, assignments, and other instruments as it may request to
enable it to enforce any and all claims with respect to the Intercompany Debt,
and (c) to collect and receive any and all payment on account of Intercompany
Debt.

SECTION 7.  REMEDIAL PROVISIONS

7.1.Certain Matters Relating to Receivables.  (a)  At
any time after the occurrence and during the continuance of a Default or an
Event of Default, the Administrative Agent shall have the right to make test
verifications of the Receivables in any manner and through any medium that it
reasonably considers advisable, and each Grantor shall furnish all such
assistance and information as the Administrative Agent may require in
connection with such test verifications. 
At any time and from time to time upon the Administrative Agent’s
request and at the expense of the relevant Grantor, such Grantor shall furnish
to the Administrative Agent internally prepared reports showing
reconciliations, aging, test verifications of, and trial balances for, the
Receivables and any other information required by the Credit Agreement.

(b)           The Administrative
Agent hereby authorizes each Grantor to collect such Grantor’s Receivables,
subject to the Administrative Agent’s direction and control, and the
Administrative Agent may curtail or terminate said authority at any time after
the occurrence and during the continuance of an Event of Default.  If required by the Administrative Agent at
any time after the occurrence and during the continuance of an Event of
Default, any payments of Receivables, when collected by any Grantor,
(i) shall be forthwith (and, in any event, within five Business Days)
deposited by such Grantor in the exact form received, duly indorsed by such
Grantor to the Administrative Agent if required, in a Collateral Account
maintained under the sole dominion and control of the Administrative Agent,
subject to withdrawal by the Administrative Agent for the account of the
Secured Parties only as provided in Section 7.5, and (ii) until so
turned over, shall be held by such Grantor in trust for the Secured Parties,
segregated from other funds of such Grantor. 
Each such deposit of Proceeds of Receivables shall be accompanied by a
report identifying in reasonable detail the nature and source of the payments
included in the deposit.

(c)           At the
Administrative Agent’s request at any time after the occurrence and during the
continuance of a Default or an Event of Default, each Grantor shall deliver to
the Administrative Agent all existing original and other documents evidencing,
and relating to, the agreements and transactions which gave rise to the
Receivables, including, without limitation, all original orders, invoices and
shipping receipts.

 17

7.2.Communications with Obligors; Grantors Remain
Liable.  (a)  At any time after the occurrence and during
the continuance of an Event of Default, the Administrative Agent in its own
name or in the name of others may at any time communicate with obligors under
the Receivables to verify with them to the Administrative Agent’s satisfaction
the existence, amount and terms of any Receivables.

(b)           Upon the request of
the Administrative Agent at any time after the occurrence and during the
continuance of an Event of Default, each Grantor shall notify obligors on the
Receivables that the Receivables have been assigned to the Administrative Agent
for the ratable benefit of the Secured Parties and that payments in respect
thereof shall be made directly to the Administrative Agent.

(c)           Anything herein to
the contrary notwithstanding, each Grantor shall remain liable under each of
the Receivables to observe and perform all the conditions and obligations to be
observed and performed by it thereunder, all in accordance with the terms of
any agreement giving rise thereto.  No
Secured Party shall have any obligation or liability under any Receivable (or
any agreement giving rise thereto) by reason of or arising out of this
Agreement or the receipt by any Secured Party of any payment relating thereto,
nor shall any Secured Party be obligated in any manner to perform any of the
obligations of any Grantor under or pursuant to any Receivable (or any
agreement giving rise thereto), to make any payment, to make any inquiry as to
the nature or the sufficiency of any payment received by it or as to the
sufficiency of any performance by any party thereunder, to present or file any
claim, to take any action to enforce any performance or to collect the payment
of any amounts which may have been assigned to it or to which it may be
entitled at any time or times.

7.3.Pledged Stock.  (a) 
Unless an Event of Default shall have occurred and be continuing and the
Administrative Agent shall have given notice to the relevant Grantor of the
Administrative Agent’s intent to exercise its corresponding rights pursuant to
Section 7.3(b), each Grantor shall be permitted to receive all cash
dividends paid in respect of the Pledged Stock and all payments made in respect
of the Pledged Notes, in each case paid in the normal course of business of the
relevant Issuer and consistent with past practice, to the extent permitted in
the Credit Agreement, and to exercise all voting and corporate rights with
respect to the Investment Property; provided, however, that no vote shall be
cast or corporate or other organizational right exercised or other action taken
which, in the Administrative Agent’s reasonable judgment, would be inconsistent
with or result in any violation of any provision of the Credit Agreement, this
Agreement or any other Loan Document.

(b)           If an Event of
Default shall occur and be continuing and the Administrative Agent shall give
notice of its intent to exercise such rights to the relevant Grantor or
Grantors, (i) the Administrative Agent shall have the right to receive any
and all cash dividends, payments or other Proceeds paid in respect of the
Investment Property and make application thereof to the Secured Obligations in
the order set forth in Section 7.5, and (ii) any or all of the
Investment Property shall be registered in the name of the Administrative Agent
or its nominee, and the Administrative Agent or its nominee may thereafter
exercise (1) all voting, corporate and other rights pertaining to such
Investment Property at any meeting of shareholders of the relevant Issuer or
Issuers or otherwise and (2) any and all rights of conversion, exchange
and subscription and any other rights, privileges or options pertaining to such
Investment Property as if it were the

 18
 

absolute owner
thereof (including, without limitation, the right to exchange at its discretion
any and all of the Investment Property upon the merger, consolidation,
reorganization, recapitalization or other fundamental change in the corporate
structure of any Issuer, or upon the exercise by any Grantor or the
Administrative Agent of any right, privilege or option pertaining to such
Investment Property, and in connection therewith, the right to deposit and
deliver any and all of the Investment Property with any committee, depositary,
transfer agent, registrar or other designated agency upon such terms and
conditions as the Administrative Agent may determine), all without liability
except to account for property actually received by it, but the Administrative
Agent shall have no duty to any Grantor to exercise any such right, privilege
or option and shall not be responsible for any failure to do so or delay in so
doing.

(c)           Each Grantor hereby
authorizes and instructs each Issuer of any Investment Property pledged by such
Grantor hereunder to (i) comply with any instruction received by it from the
Administrative Agent in writing that (1) states that an Event of Default has
occurred and is continuing and (2) is otherwise in accordance with the terms of
this Agreement, without any other or further instructions from such Grantor,
and each Grantor agrees that each Issuer shall be fully protected in so
complying, and (ii) unless otherwise expressly permitted hereby, pay any
dividends or other payments with respect to the Investment Property directly to
the Administrative Agent.

7.4.Proceeds to be Turned Over to the
Administrative Agent.  In addition to
the rights of the Secured Parties specified in Section 7.1 with respect to
payments of Receivables, if an Event of Default shall occur and be continuing,
all Proceeds received by any Grantor consisting of cash, checks and other
near-cash items shall be held by such Grantor in trust for the Secured Parties,
segregated from other funds of such Grantor, and shall, forthwith upon receipt
by such Grantor, be turned over to the Administrative Agent in the exact form
received by such Grantor (duly indorsed by such Grantor to the Administrative
Agent, if required).  All Proceeds
received by the Administrative Agent hereunder shall be held by the
Administrative Agent in a Collateral Account maintained under its sole dominion
and control.  All Proceeds while held by
the Administrative Agent in a Collateral Account (or by such Grantor in trust
for the Secured Parties) shall continue to be held as collateral security for
all the Secured Obligations and shall not constitute payment thereof until
applied as provided in Section 7.5.

7.5.Application of Proceeds.  At such intervals as may be agreed upon by
the Borrower and the Administrative Agent, or, if an Event of Default shall
have occurred and be continuing, at any time at the Administrative Agent’s
election, the Administrative Agent may apply all or any part of Proceeds
constituting Collateral, whether or not held in any Collateral Account, and any
proceeds of the guarantee set forth in Section 2, in payment of the Secured
Obligations in accordance with the provisions of Section 4.8(b) of
the Credit Agreement.

7.6.Code and Other Remedies.  If an Event of Default shall occur and be
continuing, the Administrative Agent, on behalf of the Secured Parties, may
exercise, in addition to all other rights and remedies granted to them in this
Agreement and in any other instrument or agreement securing, evidencing or
relating to the Secured Obligations, all rights and remedies of a secured party
under the New York UCC or any other applicable law.  Without limiting the generality of the
foregoing, to the extent permitted by applicable law, the Administrative Agent,
without demand of performance or other demand, presentment, protest,
advertisement or notice of any

 19
 

kind (except any notice required by law referred to
below) to or upon any Grantor or any other Person (all and each of which
demands, defenses, advertisements and notices are hereby waived), may in such
circumstances forthwith collect, receive, appropriate and realize upon the
Collateral, or any part thereof, and/or may forthwith sell, lease, assign, give
option or options to purchase, or otherwise dispose of and deliver the
Collateral or any part thereof (or contract to do any of the foregoing), in one
or more parcels at public or private sale or sales, at any exchange, broker’s
board or office of any Secured Party or elsewhere upon such terms and
conditions as it may deem advisable and at such prices as it may deem best, for
cash or on credit or for future delivery without assumption of any credit
risk.  Any Secured Party shall have the
right upon any such public sale or sales, and, to the extent permitted by law,
upon any such private sale or sales, to purchase the whole or any part of the
Collateral so sold, free of any right or equity of redemption in any Grantor,
which right or equity is hereby waived and released.  Each Grantor further agrees, at the
Administrative Agent’s request, to assemble the Collateral and make it
available to the Administrative Agent at places which the Administrative Agent
shall reasonably select, whether at such Grantor’s premises or elsewhere.  The Administrative Agent shall apply the net
proceeds of any action taken by it pursuant to this Section 7.6, after
deducting all reasonable costs and expenses of every kind incurred in
connection therewith or incidental to the care or safekeeping of any of the
Collateral or in any way relating to the Collateral or the rights of the
Secured Parties hereunder, including, without limitation, reasonable attorneys’
fees and disbursements, to the payment in whole or in part of the Secured
Obligations, in accordance with Section 7.5, may elect, and only after
such application and after the payment by the Administrative Agent of any other
amount required by any provision of law, including, without limitation, Section
9-615(a)(3) of the New York UCC, need the Administrative Agent account for the
surplus, if any, to any Grantor.  To the
extent permitted by applicable law, each Grantor waives all claims, damages and
demands it may acquire against any Secured Party arising out of the exercise by
them of any rights hereunder.  If any
notice of a proposed sale or other disposition of Collateral shall be required
by law, such notice shall be deemed reasonable and proper if given at least 10
days before such sale or other disposition.

7.7.Private Sales.  Each Grantor recognizes that the
Administrative Agent may be unable to effect a public sale of any or all the
Pledged Stock, by reason of certain prohibitions contained in the Securities
Act and applicable state securities laws or otherwise, and may be compelled to
resort to one or more private sales thereof to a restricted group of purchasers
which will be obliged to agree, among other things, to acquire such securities
for their own account for investment and not with a view to the distribution or
resale thereof.  Each Grantor
acknowledges and agrees that any such private sale may result in prices and
other terms less favorable than if such sale were a public sale and,
notwithstanding such circumstances, agrees that any such private sale shall be
deemed to have been made in a commercially reasonable manner.  Each Grantor agrees to use its best efforts
to do or cause to be done all such other acts as may be necessary to make such
sale or sales of all or any portion of the Pledged Stock pursuant to this
Section 7.7 valid and binding and in compliance with any and all other
applicable Requirements of Law; it being understood that no Grantor shall be
required to cause any Issuer to become a reporting company or to register any
such securities for public sale under the Securities Act or under any
applicable state securities laws.

7.8.Deficiency. 
Each Grantor shall remain liable for any deficiency if the proceeds of
any sale or other disposition of the Collateral are insufficient to pay its
Secured Obligations and

 20
 

the fees and disbursements of any attorneys employed
by any Secured Party to collect such deficiency.

SECTION 8.  THE ADMINISTRATIVE AGENT

8.1.Administrative Agent’s Appointment as
Attorney-in-Fact, etc.  (a)  Each Grantor hereby irrevocably constitutes
and appoints the Administrative Agent and any officer or agent thereof, with
full power of substitution, as its true and lawful attorney-in-fact with full
irrevocable power and authority in the place and stead of such Grantor and in
the name of such Grantor or in its own name, for the purpose of carrying out
the terms of this Agreement, to take any and all appropriate action and to
execute any and all documents and instruments which may be reasonably necessary
to accomplish the purposes of this Agreement to the extent permitted by
applicable law, and, without limiting the generality of the foregoing, each
Grantor hereby gives the Administrative Agent the power and right, on behalf of
such Grantor, without notice to or assent by such Grantor, to do any or all of
the following:

(i)            in the name of such Grantor or its
own name, or otherwise, take possession of and indorse and collect any checks,
drafts, notes, acceptances or other instruments for the payment of moneys due
under any Receivable or with respect to any other Collateral and file any claim
or take any other action or proceeding in any court of law or equity or otherwise
deemed appropriate by the Administrative Agent for the purpose of collecting
any and all such moneys due under any Receivable or with respect to any other
Collateral whenever payable;

(ii)           in the case of any Intellectual
Property, execute and deliver, and have recorded, any and all agreements,
instruments, documents and papers as the Administrative Agent may reasonably
request to evidence the Secured Parties’ security interest in such Intellectual
Property and the goodwill and general intangibles of such Grantor relating
thereto or represented thereby;

(iii)          pay or discharge taxes and Liens
levied or placed on or threatened against the Collateral, effect any repairs or
any insurance called for by the terms of this Agreement and pay all or any part
of the premiums therefor and the costs thereof;

(iv)          execute, in connection with any sale
provided for in Section 7.6 or 7.7, any indorsements, assignments or other
instruments of conveyance or transfer with respect to the Collateral; and

(v)           (1) 
direct any party liable for any payment under any of the Collateral to
make payment of any and all moneys due or to become due thereunder directly to
the Administrative Agent or as the Administrative Agent shall direct;
(2) ask or demand for, collect, and receive payment of and receipt for,
any and all moneys, claims and other amounts due or to become due at any time
in respect of or arising out of any Collateral; (3) sign and indorse any
invoices, freight or express bills, bills of lading, storage or warehouse receipts,
drafts against debtors, assignments, verifications, notices and other documents
in connection with any of the Collateral; (4) commence and prosecute any
suits, actions or proceedings at law or in equity in any court of competent
jurisdiction to

 21
 

collect the
Collateral or any portion thereof and to enforce any other right in respect of
any Collateral; (5) defend any suit, action or proceeding brought against
such Grantor with respect to any Collateral; (6) settle, compromise or
adjust any such suit, action or proceeding and, in connection therewith, give
such discharges or releases as the Administrative Agent may deem appropriate;
(7) subject to any existing licenses or reserved rights, assign any
Copyright, Patent or Trademark (along with the goodwill of the business to
which any such Copyright, Patent or Trademark pertains), throughout the world
for such term or terms, on such conditions, and in such manner, as the
Administrative Agent shall in its sole discretion determine; and (8) generally,
sell, transfer, pledge and make any agreement with respect to or otherwise deal
with any of the Collateral as fully and completely as though the Administrative
Agent were the absolute owner thereof for all purposes, and do, at the
Administrative Agent’s option and such Grantor’s expense, at any time, or from
time to time, all acts and things which the Administrative Agent deems
necessary to protect, preserve or realize upon the Collateral and the Secured
Parties’ security interests therein and to effect the intent of this Agreement,
all as fully and effectively as such Grantor might do.

Anything in this Section 8.1(a) to the contrary
notwithstanding, the Administrative Agent agrees that it will not exercise any
rights under the power of attorney provided for in this Section 8.1(a)
unless an Event of Default shall have occurred and be continuing.

(b)           If any Grantor fails
to perform or comply with any of its agreements contained herein, the
Administrative Agent, at its option, but without any obligation so to do, may
perform or comply, or otherwise cause performance or compliance, with such
agreement.

(c)           The expenses of the
Administrative Agent incurred in connection with actions undertaken as provided
in this Section 8.1, together with interest thereon at a rate per annum equal
to the rate per annum at which interest would then be payable on past due Base
Rate Loans under the Credit Agreement, from the date of payment by the
Administrative Agent to the date reimbursed by the relevant Grantor, shall be
payable by such Grantor to the Administrative Agent on demand.

(d)           Each Grantor hereby
ratifies all that said attorneys shall lawfully do or cause to be done by
virtue hereof.  All powers,
authorizations and agencies contained in this Agreement are coupled with an
interest and are irrevocable until this Agreement is terminated and the
security interests created hereby are released.

8.2.Duty of Administrative Agent.  The Administrative Agent’s sole duty with
respect to the custody, safekeeping and physical preservation of the Collateral
in its possession, under Section 9-207 of the New York UCC or otherwise, shall
be to deal with it in the same manner as the Administrative Agent deals with
similar property for its own account.  No
Secured Party nor any of their respective officers, directors, employees or
agents shall be liable for failure to demand, collect or realize upon any of
the Collateral or for any delay in doing so or shall be under any obligation to
sell or otherwise dispose of any Collateral upon the request of any Grantor or
any other Person or to take any other action whatsoever with regard to the
Collateral or any part thereof.  The
powers conferred on the Secured Parties hereunder are solely to protect the
Secured Parties’ interests in the Collateral and shall not impose any duty upon
any Secured

 22
 

Party to exercise any such powers.  The Secured Parties shall be accountable only
for amounts that they actually receive as a result of the exercise of such
powers, and neither they nor any of their officers, directors, employees or
agents shall be responsible to any Grantor for any act or failure to act
hereunder, except for their own gross negligence or willful misconduct.

8.3.Financing Statements.  Pursuant to Section 9-509 of the New York UCC
and any other applicable law, each Grantor authorizes the Administrative Agent
to file or record financing statements and other filing or recording documents
or instruments with respect to the Collateral without the signature of such
Grantor in such form and in such offices as the Administrative Agent and such
Grantor reasonably determines appropriate to perfect the security interests of
the Administrative Agent under this Agreement. 
Each Grantor authorizes the Administrative Agent to use the collateral
description “all personal property” in any such financing statements.  Each Grantor hereby ratifies and authorizes
the filing by the Administrative Agent of any financing statement with respect
to the Collateral made prior to the date hereof.

8.4.Authority of Administrative Agent.  Each Grantor acknowledges that the rights and
responsibilities of the Administrative Agent under this Agreement with respect
to any action taken by the Administrative Agent or the exercise or non-exercise
by the Administrative Agent of any option, voting right, request, judgment or
other right or remedy provided for herein or resulting or arising out of this
Agreement shall, as between the Administrative Agent and the Secured Parties,
be governed by the Credit Agreement and by such other agreements with respect thereto
as may exist from time to time among them, but, as between the Administrative
Agent and the Grantors, the Administrative Agent shall be conclusively presumed
to be acting as agent for the Secured Parties with full and valid authority so
to act or refrain from acting, and no Grantor shall be under any obligation, or
entitlement, to make any inquiry respecting such authority.

SECTION 9.  REAFFIRMATION

9.1.Reaffirmation and Consent.  Borrower and Guarantors hereby
(a) represents and warrants to Administrative Agent and the Lenders that
the execution, delivery, and performance of this Agreement are within its
corporate powers, have been duly authorized by all necessary corporate action,
and are not in contravention of any law, rule, or regulation, or any order,
judgment, decree, writ, injunction, or award of any arbitrator, court, or
governmental authority, or of the terms of its charter, bylaws, or other
governing documents, or of any contract or undertaking to which it is a party
or by which any of its properties may be bound or affected; (b) consents to the
amendment and restatement of the Original Credit Agreement by the Credit
Agreement; (c) acknowledges and agrees that (i) its obligations owing to
Administrative Agent and the Lenders, and (ii) the prior grant or grants (if
any) of security interests in favor of Administrative Agent in its properties
and assets, in each case under each “Loan Document”, as such term is defined in
the Original Credit Agreement, exclusive of the Intercreditor Agreement (such
Loan Documents, as so defined, are hereinafter referred to collectively as the “Original
Loan Documents”) and each Loan Document to which it is a party are hereby
deemed to be in respect of the obligations of Borrower and Guarantors under the
Credit Agreement and the other Loan Documents; (d) reaffirms (i) all of
its obligations owing to Administrative Agent and the Lenders, and (ii) all
prior grants (if any) of security interests in favor of Administrative Agent

 23
 

under each Original Loan Document and each Loan
Document; and (e) agrees that, except as expressly amended hereby or as amended
by the other Loan Documents dated as of the date hereof, or, in the case of the
Intercreditor Agreement and Subordination Agreement (as each such term is
defined in the Original Credit Agreement), terminated, each of the Original
Loan Documents to which it is a party is and shall remain in full force and
effect.  Borrower and each Guarantor
hereby acknowledges that (1) the Credit Agreement and the other Loan Documents
do not extinguish the obligations for the payment of money outstanding under
the Original Credit Agreement or discharge or release the obligations or the
liens or priority of any mortgage, pledge, security agreement or any other
security therefor, except to the extent amended prior to the date hereof, (2)
nothing contained in any Loan Document shall be construed as a substitution or
novation of the obligations outstanding under the Original Credit Agreement,
the other Original Loan Documents or instruments securing the same, which shall
remain in full force and effect, except as modified hereby or by instruments
executed concurrently herewith and (3) nothing expressed or implied in the
Credit Agreement or any other Loan Document shall be construed as a release or
other discharge of Borrower or any Guarantor from any of its obligations or
liabilities under the Original Credit Agreement or any of the security
agreements, pledge agreements, mortgages, guaranties or other loan documents
executed in connection therewith, except to the extent amended prior to the
date hereof.  Although Borrower and
Guarantors have been informed of the matters set forth herein and has
acknowledged and agreed to same, it understands that Administrative Agent and
the Lenders shall have no obligation to inform it of such matters in the future
or to seek its acknowledgement or agreement to future amendments or
modifications, and nothing herein shall create such a duty.

SECTION 10.  MISCELLANEOUS

10.1.Amendments in Writing.  None of the terms or provisions of this
Agreement may be waived, amended, supplemented or otherwise modified except in
accordance with Section 11.1 of the Credit Agreement; provided, that no such
waiver amendment, supplement or modification shall require the consent of any
Bank Product Provider except as expressly provided in Section 11.1 of the
Credit Agreement.

10.2.Notices. 
All notices, requests and demands to or upon the Administrative Agent or
any Grantor hereunder shall be effected in the manner provided for in Section 11.2
of the Credit Agreement; provided that any such notice, request or demand to or
upon any Guarantor shall be addressed to such Guarantor at its notice address
set forth on Schedule 1 or to such other address for notice, request or
demand which a Grantor may designate by written notice to the Administrative
Agent.

10.3.No Waiver by Course of Conduct; Cumulative
Remedies.  No Secured Party shall by
any act (except by a written instrument pursuant to Section 9.1), delay,
indulgence, omission or otherwise be deemed to have waived any right or remedy
hereunder or to have acquiesced in any Default or Event of Default.  No failure to exercise, nor any delay in
exercising, on the part of any Secured Party, any right, power or privilege
hereunder shall operate as a waiver thereof. 
No single or partial exercise of any right, power or privilege hereunder
shall preclude any other or further exercise thereof or the exercise of any
other right, power or privilege.  A
waiver by any Secured Party of any right or remedy hereunder on any one
occasion shall not be construed as a bar to any right or remedy which the
Administrative Agent or any such Lender would otherwise

 24
 

have on any future occasion.  The rights and remedies herein provided are
cumulative, may be exercised singly or concurrently and are not exclusive of
any other rights or remedies provided by law.

10.4.Enforcement Expenses; Indemnification.  (a) 
Each Guarantor agrees to pay, or reimburse each Secured Party for all
its costs and expenses incurred in collecting against such Guarantor under the
guarantee contained in Section 2 or otherwise enforcing or preserving any
rights under this Agreement and the other Loan Documents to which such
Guarantor is a party, including, without limitation, the fees and disbursements
of counsel to each Secured Party.

(b)           Each Guarantor
agrees to pay, and to save the Secured Parties harmless from, any and all
liabilities with respect to, or resulting from any delay in paying, any and all
stamp, excise, sales or other taxes which may be payable or determined to be
payable with respect to any of the Collateral or in connection with any of the
transactions contemplated by this Agreement.

(c)           Each Guarantor
agrees to pay, and to save the Secured Parties harmless from, any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever with respect to the
execution, delivery, enforcement, performance and administration of this
Agreement to the extent the Borrower would be required to do so pursuant to
Section 11.5 of the Credit Agreement.

(d)           The agreements in
this Section shall survive repayment of the Secured Obligations and all other
amounts payable under the Credit Agreement and the other Loan Documents.

10.5.Successors and Assigns.  This Agreement shall be binding upon the
successors and assigns of each Grantor and shall inure to the benefit of the
Administrative Agent and the other Secured Parties and their successors and
permitted assigns; provided that no Grantor may assign, transfer or delegate
any of its rights or obligations under this Agreement without the prior written
consent of the Administrative Agent.

10.6.Set-Off. 
Each Grantor hereby irrevocably authorizes the Administrative Agent and
each Secured Party at any time after the occurrence of and during the
continuance of a Default or an Event of Default under Section 9(a) of the
Credit Agreement, without prior notice to such Grantor or any other Grantor,
any such notice being expressly waived by each Grantor to the extent permitted
by applicable law, to set-off and appropriate and apply any and all deposits
(general or special, time or demand, provisional or final), in any currency,
and any other credits, indebtedness or claims, in any currency, in each case
whether direct or indirect, absolute or contingent, matured or unmatured, at
any time held or owing by such Secured Party to or for the credit or the
account of such Grantor, or any part thereof in such amounts as such Agent or such
Secured Party may elect, against and on account of the obligations and
liabilities of such Grantor to such Agent or such Secured Party hereunder and
claims of every nature and description of such Agent or such Secured Party
against such Grantor, in any currency, whether arising hereunder, under the
Credit Agreement or any other Loan Document, as such Agent or such Secured
Party may elect, whether or not any Secured Party has made any demand for
payment and although such obligations, liabilities and claims may be contingent
or unmatured.  The Administrative Agent
and each Secured Party shall notify such Grantor promptly of any such set-off
and the application made by the Administrative Agent or such Secured Party of the
proceeds thereof, provided that the failure to give such notice shall not
affect the validity of such set-

 25
 

off and application. 
The rights of the Administrative Agent and each Secured Party under this
Section are in addition to other rights and remedies (including, without
limitation, other rights of set-off) which the Administrative Agent or such
Secured Party may have.

10.7.Further Assurances.  The parties agree to do such further acts and
to execute and deliver such additional agreements and documents as
Administrative Agent may reasonably request to consummate, evidence, or confirm
the agreements contained herein in the manner contemplated hereby.

10.8.Counterparts.  This Agreement may be executed by one or more
of the parties to this Agreement on any number of separate counterparts (including
by telecopy), and all of said counterparts taken together shall be deemed to
constitute one and the same instrument.

10.9.Severability.  Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

10.10.Section Headings.  The Section headings used in this Agreement
are for convenience of reference only and are not to affect the construction
hereof or be taken into consideration in the interpretation hereof.

10.11.Integration.  This Agreement and the other Loan Documents
represent the agreement of the Grantors and the Secured Parties with respect to
the subject matter hereof and thereof, and there are no promises, undertakings,
representations or warranties by any Secured Party relative to subject matter
hereof and thereof not expressly set forth or referred to herein or in the
other Loan Documents.

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

10.13.Submission To Jurisdiction; Waivers.  Each Grantor hereby irrevocably and
unconditionally:

(a)           submits for itself
and its property in any legal action or proceeding relating to this Agreement
and the other Loan Documents to which it is a party, or for recognition and
enforcement of any judgment in respect thereof, to the non-exclusive
general jurisdiction of the Courts of the State of New York located in the City
or County of New York, the courts of the United States of America for the Southern
District of New York, and appellate courts from any thereof;

(b)           consents that any
such action or proceeding may be brought in such courts and waives any
objection that it may now or hereafter have to the venue of any such action or

 26
 

proceeding in
any such court or that such action or proceeding was brought in an inconvenient
court and agrees not to plead or claim the same;

(c)           agrees that service
of process in any such action or proceeding may be effected by mailing a copy
thereof by registered or certified mail (or any substantially similar form of
mail), postage prepaid, to such Grantor at its address referred to in Section
9.2 or at such other address of which the Administrative Agent and the
Administrative Agent shall have been notified pursuant thereto;

(d)           agrees that nothing
herein shall affect the right to effect service of process in any other manner
permitted by law or shall limit the right to sue in any other jurisdiction; and

(e)           waives, to the
maximum extent not prohibited by law, any right it may have to claim or recover
in any legal action or proceeding referred to in this Section any special,
exemplary, punitive or consequential damages.

10.14.Acknowledgments.  Each Grantor hereby acknowledges that:

(a)           it has been advised
by counsel in the negotiation, execution and delivery of this Agreement and the
other Loan Documents to which it is a party;

(b)           no Secured Party has
any fiduciary relationship with or duty to any Grantor arising out of or in
connection with this Agreement or any of the other Loan Documents, and the
relationship between the Grantors, on the one hand, and the Secured Parties, on
the other hand, in connection herewith or therewith is solely that of debtor
and creditor; and

(c)           no joint venture is
created hereby or by the other Loan Documents or otherwise exists by virtue of
the transactions contemplated hereby among the Secured Parties or among the
Grantors and the Secured Parties.

10.15.Additional Grantors.  Each Subsidiary of the Borrower that is
required to become a party to this Agreement pursuant to Section 7.10 of the
Credit Agreement shall become a Grantor for all purposes of this Agreement upon
execution and delivery by such Subsidiary of an Assumption Agreement in the
form of Annex 1 hereto.

10.16.Releases. 
(a)  At such time as the Loans,
the Reimbursement Obligations and the other Secured Obligations under the Loan
Documents (other than Secured Obligations under or in respect of Bank Product
Agreements and unasserted contingent indemnification obligations) shall have
been paid in full, the Commitments under the Facilities have been terminated
and no Letters of Credit shall be outstanding, the Collateral shall be released
from the Liens created hereby, and this Agreement and all obligations (other
than those expressly stated to survive such termination) of the Administrative
Agent and each Grantor hereunder shall terminate, all without delivery of any
instrument or performance of any act by any party, and all rights to the
Collateral shall revert to the Grantors. 
At the request and sole expense of any Grantor following any such
termination, the Administrative Agent shall deliver to such Grantor any
Collateral held by the Administrative Agent hereunder, and execute and deliver
to such Grantor such documents as such Grantor shall reasonably request to
evidence such termination.

 27
 

(b)           If any of the
Collateral shall be sold, transferred or otherwise disposed of by any Grantor
in a transaction permitted by the Credit Agreement, then the Administrative
Agent, at the request and sole expense of such Grantor, shall execute and
deliver to such Grantor all releases or other documents reasonably necessary or
desirable for the release of the Liens created hereby on such Collateral.  At the request and sole expense of the
Borrower, a Subsidiary Guarantor shall be released from its obligations
hereunder in the event that all the Capital Stock of such Subsidiary Guarantor
shall be sold, transferred or otherwise disposed of in a transaction permitted
by the Credit Agreement; provided that the Borrower shall have delivered
to the Administrative Agent and the Administrative Agent, at least five
Business Days prior to the date of the proposed release, a written request for
release identifying the relevant Subsidiary Guarantor and the terms of the sale
or other disposition in reasonable detail, including the price thereof and any
expenses in connection therewith, together with a certification by the Borrower
stating that such transaction is in compliance with the Credit Agreement and
the other Loan Documents.

10.17.WAIVER OF JURY TRIAL.  EACH GRANTOR AND, BY ACCEPTANCE OF THE
BENEFITS HEREOF, THE ADMINISTRATIVE AGENT AND EACH SECURED PARTY, HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR
PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY
COUNTERCLAIM THEREIN.

10.18.Bank Product Providers. By accepting the
applicable benefits of the Loan Documents, each Bank Product Provider shall be
deemed to have agreed to, and be bound by, all of the applicable provisions
thereof.

 28

IN WITNESS WHEREOF, each of the undersigned has caused
this Guarantee and Collateral Agreement to be duly executed and delivered as of
the date first above written.

	
  

  	
  EINSTEIN NOAH RESTAURANT GROUP, INC.

  (formerly known as NEW WORLD

  RESTAURANT GROUP, INC.)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul J.B. Murphy, III

  	
   

  
	
   

  	
   

  	
  Name: Paul J.B. Murphy, III

  
	
   

  	
   

  	
  Title: President and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MANHATTAN BAGEL COMPANY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul J.B. Murphy, III

  	
   

  
	
   

  	
   

  	
  Name: Paul J.B. Murphy, III

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CHESAPEAKE BAGEL FRANCHISE CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul J.B. Murphy, III

  	
   

  
	
   

  	
   

  	
  Name: Paul J.B. Murphy, III

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EINSTEIN AND NOAH CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul J.B. Murphy, III

  	
   

  
	
   

  	
   

  	
  Name: Paul J.B. Murphy, III

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EINSTEIN/NOAH BAGEL PARTNERS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul J.B. Murphy, III

  	
   

  
	
   

  	
   

  	
  Name: Paul J.B. Murphy, III

  
	
   

  	
   

  	
  Title: President

  

 

[SIGNATURE
PAGE TO AMENDED AND RESTATED GUARANTEE AND COLLATERAL AGREEMENT]

 

	
  

  	
  I. & J. BAGEL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul J.B. Murphy, III

  	
   

  
	
   

  	
   

  	
  Name: Paul J.B. Murphy, III

  
	
   

  	
   

  	
  Title: President

  

 

[SIGNATURE
PAGE TO AMENDED AND RESTATED GUARANTEE AND COLLATERAL AGREEMENT]

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