Document:

exhibit10-1.htm

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ____________________________________________________

    ____________________________________________________

    

    

    

    AMENDED
AND RESTATED CREDIT AGREEMENT

    dated as
of June 26, 2008

    

    among

    

    NEW EARTH
LNG, LLC,

    as
Borrower,

    

    

    PNG
VENTURES, INC.,

    as
Parent

    

    and

    

    APPLIED
LNG TECHNOLOGIES USA, L.L.C.

     

    FLEET
STAR, INC.

     

    EARTH
LEASING, INC.

     

    ARIZONA
LNG, L.L.C.

    

    as Loan
Parties,

    

    

    THE
FINANCIAL INSTITUTIONS PARTY HERETO,

    as
Lenders,

    

    and

    

    FOURTH
THIRD LLC

    

    as Agent
and Sole Lead Arranger

    

    

    ____________________________________________________

    ____________________________________________________

    

    
      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    TABLE
OF CONTENTS

     

    Page

    

       

    

    Section
1.                      Definitions;
Interpretation. 

    1.1.           Definitions.

    1.2.           Interpretation.

     

    Section
2.                      Credit
Facilities.

    2.1.           Commitments. 

    2.2.           Omitted. 

    2.3.           Loan
Accounting. 

    2.3.1.               Recordkeeping. 

    2.3.2.               Notes. 

    2.4.           Interest. 

    2.4.1.               Interest
Rates. 

    2.4.2.               Interest Payment
Dates. 

    2.4.3.               Setting and Notice of LIBOR
Rates.

    2.4.4.               Computation of
Interest. 

    2.5.           Fees. 

    2.5.1.               Fourth Third’s
Fees.

    2.6.           Prepayment. 

    2.6.1.               Voluntary
Prepayment. 

    2.6.2.               Mandatory
Prepayment. 

    2.6.3.               All
Prepayments. 

    2.7.           Repayment

    2.8.           Payment. 

    2.8.1.               Making of
Payments. 

    2.8.2.               Application of Payments and
Proceeds. 

    2.8.3.               Payment
Dates. 

    2.8.4.               Set-off. [

    2.8.5.               Proration of
Payments. 

     

    Section
3.                      Yield
Protection.

    3.1.           Taxes. 

    3.2.           Increased
Cost. 

    3.3.           Funding
Losses.

    3.4.           Manner of Funding; Alternate
Funding Offices.

    3.5.           Mitigation of Circumstances;
Replacement of Lenders. 

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    3.6.           Conclusiveness of
Statements; Survival. 

     

    Section
4.                      Conditions
Precedent. 

    4.1.           Credit
Extension.

    4.1.1.               Omitted. 

    4.1.2.               Omitted. 

    4.1.3.               Interest and
Fees. 

    4.1.4.               Delivery of Loan
Documents. 

    4.1.5.               Representations and
Warranties 

    4.1.6.               No
Default

    4.1.7.               Diligence 

    4.1.8.               No Material Adverse
Change 

    4.1.9.               Reservation of
Shares 

    4.1.10.             Drop Down and Share
Exchange

     

    Section
5.                      Representations and
Warranties. 

    5.1.           Organization. 

    5.2.           Authorization; No
Conflict. 

    5.3.           Validity; Binding
Nature. 

    5.4.           Financial
Condition. 

    5.5.           No Material Adverse
Change. 

    5.6.           Litigation 

    5.7.           Ownership of Properties;
Liens. 

    5.8.           Capitalization. 

    5.9.           Pension
Plans. 

    5.10.               Compliance with Law;
Investment Company Act; Other Regulated Entities. 

    5.11.               Margin
Stock.

    5.12.               Taxes. 

    5.13.               Solvency. 

    5.14.               Environmental
Matters. 

    5.15.               Insurance. 

    5.16.               Information.

    5.17.               Intellectual
Property. 

    5.18.               Labor
Matters.

    5.19.               No
Default. 

    5.20.               Foreign Assets Control
Regulations and Anti-Money Laundering. 

    5.20.1.            OFAC.

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

      

    5.20.2.    Patriot
Act

    5.21.               Gas Supply and Hedge
Contracts.

     

    Section
6.                      Affirmative
Covenants. 

    6.1.           Information.

    6.1.1.               Annual
Report. 

    6.1.2.               Interim
Reports. 

    6.1.3.               Compliance
Certificate. 

    6.1.4.               Reports to SEC and
Shareholders. 

    6.1.5.               Notice of Default;
Litigation; ERISA Matters.

    6.1.6.               Management
Report. 

    6.1.7.               Projections. 

    6.1.8.               Other
Information. 

    6.2.           Books; Records;
Inspections.

    6.3.           Maintenance of Property;
Insurance. 

    6.4.           Compliance with Laws;
Payment of Taxes and Liabilities.

    6.5.           Maintenance of
Existence.

    6.6.           Employee Benefit
Plans. 

    6.7.           Environmental
Matters. 

    6.8.           Further
Assurances. 

    6.9.           Collateral Access
Agreements. 

    6.10.               Board Observation
Rights. 

     

    Section
7.                      Negative
Covenants. 

    7.1.           Debt. 

    7.2.           Liens. 

    7.3.           Subsidiaries. 

    7.4.           Restricted
Payments.

    7.5.           Mergers; Consolidations;
Asset Sales. 

    7.6.           Modification of
Organizational Documents. 

    7.7.           Use of
Proceeds. 

    7.8.           Transactions with Affiliates
and Former Affiliates. 

    7.9.           Inconsistent
Agreements. 

    7.10.               Business
Activities. 

    7.11.               Investments. 

    7.12.               Omitted.

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    7.13.               Fiscal
Year. 

    7.14.               Financial
Covenants. 

    7.14.1.            Fixed Charge Coverage
Ratio.

    7.14.2.            EBITDA.

    7.14.3.            Capital
Expenditures

    7.15.               Deposit Accounts and
Securities Accounts. 

    7.16.               Sale-Leasebacks 

    7.17.               Hazardous
Substances 

     

    Section
8.                      Events of Default;
Remedies. 

    8.1.           Events of
Default. 

    8.1.1.               Non-Payment of
Credit. 

    8.1.2.               Default Under Other
Debt. 

    8.1.3.               Bankruptcy;
Insolvency. 

    8.1.4.               Non-Compliance with Loan
Documents. 

    8.1.5.               Representations;
Warranties. 

    8.1.6.               Pension
Plans. 

    8.1.7.               Judgments. 

    8.1.8.               Invalidity of Collateral
Documents. 

    8.1.9.               Invalidity of Intercreditor
Provisions.

    8.1.10.             Change of
Control.

    8.1.11.             Gas Supply and Hedge
Contracts.

    8.2.           Remedies. 

     

    Section
9.                      Agent. 

    9.1.           Appointment;
Authorization. 

    9.2.           Delegation of
Duties. 

    9.3.           Limited
Liability.

    9.4.           Reliance. 

    9.5.           Notice of
Default. 

    9.6.           Credit
Decision. 

    9.7.           Indemnification. 

    9.8.           Agent
Individually. 

    9.9.           Successor
Agent. 

    9.10.               Collateral
Matters. 

     

    Section
10.           
  Miscellaneous.

    10.1.               Waiver;
Amendments. 

    10.2.               Notices. 

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    10.3.               Computations. 

    10.4.               Costs;
Expenses.

    10.5.               Indemnification by
Borrower. 

    10.6.               Marshaling; Payments Set
Aside.

    10.7.               Nonliability of
Lenders.

    10.8.               Assignments;
Participations. 

    10.8.1.                Assignments.

    10.8.2.                Participations

    10.9.               Confidentiality. 

    10.10.               Captions. 

    10.11.               Nature of
Remedies.

    10.12.               Counterparts. 

    10.13.               Severability. 

    10.14.               Entire
Agreement.

    10.15.               Successors;
Assigns. 

    10.16.               Governing
Law.

    10.17.               Forum Selection; Consent to
Jurisdiction. 

    10.18.               Waiver of Jury
Trial. 

    10.19.               Collateral
Agent. 

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Annexes

    

    Annex
I                      Commitments
and Pro Rata Shares

    Annex
II                      Addresses

    

    

    Exhibits

    

    Exhibit
A                      Form
of Assignment Agreement

    Exhibit
B                      Form
of Compliance Certificate

    Exhibit
C                      Form
of Note

    Exhibit
D                      Form
of Excess Cash Flow Certificate

    

    Schedules

    

    Schedule
4.1                           Prior
Debt

    Schedule
5.6                           Litigation

    Schedule
5.8                           Capitalization

    Schedule
5.12                         Taxes

    Schedule
5.14                         Environmental
Matters

    Schedule
5.15                         Insurance

    Schedule
5.18                         Labor
Matters

    Schedule
7.1                           Existing
Debt

    Schedule
7.2                           Existing
Liens

    Schedule
7.11                         Existing
Investments

    Schedule
7.15                         Bank
Accounts

    

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    AMENDED
AND RESTATED CREDIT AGREEMENT

     

    Amended and Restated Credit Agreement
dated as of June __, 2008 (as amended, restated or otherwise modified from time
to time, this “Agreement”) among NEW
EARTH LNG, LLC, a Delaware limited liability company (“Borrower”), PNG
VENTURES, INC., a Nevada corporation (“PNG” or “Parent”), the other
Loan Parties named herein, the financial institutions party hereto from time to
time (“Lenders”) and Fourth
Third LLC, a Delaware limited liability company (in its individual capacity,
“Fourth
Third”), as Sole Lead Arranger and Agent for all Lenders.

     

    Heretofore, Earth LNG, Inc., a Texas
corporation (“Old
Earth”), its then parent company, EARTH BIOFUELS, INC., a Delaware
corporation (“EBOF”), certain
Subsidiaries of Old Earth, Lenders and Agent made and entered into a certain
Credit Agreement, dated as of February 28, 2007 (which, as amended or modified
to date, is herein called the “Original Credit
Agreement”) pursuant to which Lenders, acting through Agent, agreed to
extend credit to Old Earth subject to the terms and conditions set forth
therein, including a continuing guaranty from EBOF and the pledge of its capital
stock in Old Earth.  Effective this date, Old Earth has transferred
all, or substantially all, of its assets, inclusive of all of its membership
interests in its existing Subsidiaries, to Borrower, and Borrower has assumed
all liabilities of Old Earth to Lenders and Agent under the Original Credit
Agreement (the “Drop
Down”), which Borrower acknowledges pursuant hereto; and, in connection
therewith, PNG, EBOF and Old Earth have entered into a Share Exchange Agreement,
dated as of June __, 2008 (which, as amended or modified from time to time, is
called herein the “Share Exchange
Agreement”) pursuant to which, effective this date, Old Earth has
exchanged all of its membership interests in Borrower for certain capital stock
in PNG (the “Share
Exchange”), resulting in Events of Default under the Original Credit
Agreement unless the Drop Down and the Share Exchange are consented to by
Lenders.  Borrower has requested that Lenders give their consent to
the Drop Down and the Share Exchange, and to the release of EBOF, Old Earth and
Durant from their obligations under the Original Credit Agreement and the
Amended and Restated Guarantee and Collateral Agreement; and, in addition
thereto, that Lenders extend additional credit to Borrower and that the Lenders
make certain other modifications to the terms of the Original Credit Agreement,
all of which Lenders have agreed to do, subject, however, to the terms
and conditions herein contained.  The parties hereto have agreed to
amend and restate, in its entirety, the Original Credit Agreement in order to
give effect to the foregoing.

     

    Now,
therefore, in consideration of the foregoing premises and the mutual agreements
herein contained, the Lenders hereby consent to the Drop Down and the Share
Exchange, and the release of EBOF and Durant from their obligations under the
Original Credit Agreement and the Amended and Restated Guarantee and Collateral
Agreement; and the parties hereto agree to amend and restate the Original Credit
Agreement in its entirety as follows:

     

    
      	
              Section
      1.

            	
              Definitions;
      Interpretation.

            

    

     

    1.1.           Definitions.

     

    When used
herein the following terms shall have the following meanings:

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Acceleration Event
means the occurrence of any of the following:  (i) an Event of Default
under Section
8.1.3; (ii) an Event of Default under Section 8.1.1 and the
termination of the Commitments pursuant to Section 8.2; or (iii)
any other Event of Default under Section 8.1 and the
election by the Required Lenders to declare the Obligations to be due and
payable pursuant to Section
8.2.

     

    Acquisition means any
transaction or series of related transactions for the purpose of or resulting,
directly or indirectly, in (a) the acquisition of all or a substantial portion
of the assets of a Person, or of all or a substantial portion of any business or
division of a Person, (b) the acquisition of in excess of 50% of the capital
stock, partnership interests, membership interests or equity of any Person, or
otherwise causing any Person to become a Subsidiary, or (c) a merger or
consolidation or any other combination with another Person (other than a Person
that is already a Subsidiary).

     

    Adjusted Working
Capital means the remainder of (a) the consolidated current assets of
Borrower and its Subsidiaries minus the amount of cash and cash equivalents
included in such consolidated current assets, minus (b) the consolidated current
liabilities of Borrower and its Subsidiaries minus the amount of consolidated
short-term Debt (including current maturities of long-term Debt) of Borrower and
its Subsidiaries included in such consolidated current liabilities.

     

    Affiliate of any
Person means (a) any other Person which, directly or indirectly, controls or is
controlled by or is under common control with such Person, (b) any officer or
director of such Person and (c) with respect to any Lender, any entity
administered or managed by such Lender or an Affiliate or investment advisor
thereof which is engaged in making, purchasing, holding or otherwise investing
in commercial loans.  A Person shall be deemed to be “controlled by”
any other Person if such Person possesses, directly or indirectly, power to vote
10% or more of the securities (on a fully diluted basis) having ordinary voting
power for the election of directors or managers or power to direct or cause the
direction of the management and policies of such Person whether by contract or
otherwise.  Unless expressly stated otherwise herein, neither Agent
nor any Lender shall be deemed an Affiliate of any Loan Party.

     

    Agent means Fourth
Third LLC in its capacity as agent for all Lenders hereunder and any successor
thereto in such capacity.

     

    Agreement has the
meaning set forth in the Preamble.

     

    Applicable Margin
means 7.25% per annum.

     

    Approved Fund means
(a) any fund, trust or similar entity that invests in commercial loans in the
ordinary course of business and is advised or managed by (i) a Lender, (ii) an
Affiliate of a Lender, (iii) the same investment advisor that manages a Lender
or (iv) an Affiliate of an investment advisor that manages a Lender or (b) any
finance company, insurance company or other financial institution which
temporarily warehouses loans for any Lender or any Person described in clause
(a) above.

     

    Arizona LNG means
Arizona LNG, L.L.C., a Nevada limited liability company.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Assignee has the
meaning set forth in Section
10.8.1.

     

    Assignment Agreement
means an agreement substantially in the form of Exhibit A.

     

    Black Forest means
Black Forest International, LLC, or its registered assigns in respect of the
Black Forest Note.

     

    Black Forest Debt
means the Indebtedness of PNG to Black Forest in the original principal amount
of $628,250, evidenced by the Black Forest Note.

     

    Black Forest Guaranty
means the Guaranty Agreement, dated on or about the Closing Date, given by the
Loan Parties (other than Parent) in respect of the Black Forest Debt
guaranteeing the payment thereof.

     

    Black Forest Note
means the 12% Subordinated Secured Convertible Promissory Note, dated June 3,
2008, issued by PNG to the order of Black Forest to evidence the Black Forest
Debt.

     

    Black Forest Security
means the Lien given by the Loan Parties pursuant to the Black Forest Security
Agreement on all or certain of their assets to secure payment of the Black
Forest Debt.

     

    Black Forest Security
Agreement means the General Security Agreement, dated on or about the
Closing Date, given by the Loan Parties in respect of the Black Forest Debt to
secure the payment thereof.

     

    Black Forest Subordination
Agreement means the Subordination Agreement, dated the Closing Date, made
among Agent, the Loan Parties and Black Forest, evidencing the subordination of
the Black Forest Debt to the Obligations.

     

    Board of Directors
has the meaning ascribed to it in Section
6.10.

     

    Borrower has the
meaning set forth in the Preamble.

     

    Business Day means
any day on which commercial banks are open for commercial banking business in
San Francisco, California and New York, New York, and on which dealings are
carried on in the London interbank eurodollar market.

     

    Calculation Date
means each of the Closing Date and the 15th day of each calendar month
thereafter.

     

    Capital Expenditures
means all expenditures which, in accordance with GAAP, would be required to be
capitalized and shown on the consolidated balance sheet of Borrower, but
excluding expenditures made in connection with the replacement, substitution or
restoration of assets to the extent financed (a) from insurance proceeds (or
other similar recoveries) paid on account of the loss of or damage to the assets
being replaced or restored, (b) with cash awards of compensation arising from
the taking by eminent domain or condemnation of the assets being

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    replaced,
or (c) with cash proceeds of Dispositions that are reinvested in accordance with
this Agreement.

     

    Capital Lease means,
with respect to any Person, any lease of (or other agreement conveying the right
to use) any real or personal property by such Person that, in conformity with
GAAP, is accounted for as a capital lease on the balance sheet of such
Person.

     

    Cash Equivalent
Investment means, at any time, (a) any evidence of Debt, maturing not
more than one year after such time, issued or guaranteed by the United States
Government or any agency thereof, (b) commercial paper, or corporate demand
notes, in each case (unless issued by a Lender or its holding company) rated at
least A-l by Standard & Poor’s Ratings Group or P-l by Moody’s Investors
Service, Inc., (c) any certificate of deposit (or time deposit represented by a
certificate of deposit) or banker’s acceptance maturing not more than one year
after such time, or any overnight Federal Funds transaction that is issued or
sold by any Lender (or by a commercial banking institution that is a member of
the Federal Reserve System and has a combined capital and surplus and undivided
profits of not less than $500,000,000), (d) any repurchase agreement entered
into with any Lender (or commercial banking institution of the nature referred
to in clause (c) above) which (i) is secured by a fully perfected security
interest in any obligation of the type described in any of clauses (a) through
(c) above and (ii) has a market value at the time such repurchase agreement is
entered into of not less than 100% of the repurchase obligation of such Lender
(or other commercial banking institution) thereunder, (e) money market accounts
or mutual funds which invest predominantly in assets satisfying the foregoing
requirements and (f) other short term liquid investments approved in writing by
Agent.

     

    Closing Date means
the date on which the conditions set forth in Section 4.1 have been
satisfied or waived by the Lenders.

     

    Collateral means all
property and interests in property and proceeds thereof now owned or hereafter
acquired by any Loan Party and any other Person who has granted a Lien to the
Agent, in or upon which a Lien now or hereafter exists in favor of any Lender or
the Agent for the benefit of the Agent and Lenders, whether under this Agreement
or under any other documents executed by any such Persons and delivered to the
Agent; provided, however, that with
respect to Parent, the term “Collateral” includes only (i) all capital stock of
the Borrower now owned or hereafter acquired by Parent and (ii) all proceeds and
products of any and all of the property listed in clause (i) and all collateral
security and guarantees given by any Person with respect to any of such
property, and excludes all other property or proceeds thereof now owned or
hereafter acquired by Parent.

     

    Collateral Access
Agreement means an agreement in form and substance reasonably
satisfactory to Agent pursuant to which a mortgagee or lessor of real property
on which Collateral is stored or otherwise located, or a warehouseman, processor
or other bailee of Inventory or other property owned by any Loan Party,
acknowledges the Liens of Agent and waives (or, if approved by Agent,
subordinates) any Liens held by such Person on such property, and, in the case
of any such agreement with a mortgagee or lessor, permits Agent reasonable
access to and use of such real property during the continuance of an Event of
Default to assemble, complete and sell any Collateral stored or otherwise
located thereon.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Collateral Documents
means, collectively, the Guarantee and Collateral Agreement, each Mortgage, and
each other agreement or instrument pursuant to or in connection with which any
Loan Party or any other Person grants a security interest in any Collateral to
Agent for the benefit of Lenders, each as amended, restated or otherwise
modified from time to time.

     

    Commitment means, as
to any Lender, such Lender’s Pro Rata Share of the Loan Commitment.

     

    Compliance
Certificate means a certificate substantially in the form of Exhibit
B.

     

    Computation Period
means each period of four consecutive Fiscal Quarters ending on the last day of
a Fiscal Quarter, beginning with the Fiscal Quarter ending June 30,
2008.

     

    Consolidated Net
Income means, with respect to Borrower and its Subsidiaries for any
period, the consolidated net income (or loss) of Borrower and its Subsidiaries
for such period, excluding (i) consolidated net income of any Person for any
period prior to such Person becoming a Subsidiary, (ii) any gains or losses from
Dispositions, (iii) any extraordinary gains or extraordinary losses, (iv) any
net income of any Subsidiary to the extent that such Subsidiary is unable, by
virtue of any legal or contractual prohibition, from distributing such net
income to the Borrower, and (iv) any gains or losses from discontinued
operations.

     

    Contingent Obligation
means any agreement, undertaking or arrangement by which any Person guarantees,
endorses or otherwise becomes or is contingently liable upon (by direct or
indirect agreement, contingent or otherwise, to provide funds for payment, to
supply funds to or otherwise to invest in a debtor, or otherwise to assure a
creditor against loss) any indebtedness, obligation or other liability of any
other Person (other than by endorsements of instruments in the course of
collection), or guarantees the payment of dividends or other distributions upon
the shares of any other Person.  The amount of any Person’s obligation
in respect of any Contingent Obligation shall (subject to any limitation set
forth therein) be deemed to be the principal amount of the debt, obligation or
other liability supported thereby.

     

    Control Agreement
means a tri-party deposit account, securities account or commodities account
Control Agreements by and among the applicable Loan Party, Agent and the
depository, securities intermediary or commodities intermediary, and each in
form and substance reasonably satisfactory in all respects to Agent and in any
event providing to Agent “control” of such deposit account, securities or
commodities account within the meaning of Articles 8 and 9 of the
UCC.

     

    Controlled Group
means all members of a controlled group of corporations and all members of a
controlled group of trades or businesses (whether or not incorporated) under
common control which, together with a Loan Party, are treated as a single
employer under Section
414 of the IRC or Section 4001 of ERISA.

     

    Debt of any Person
means, without duplication, (a) all indebtedness of such Person for borrowed
money, (b) all indebtedness evidenced by bonds, debentures, notes or similar
instruments, (c) all obligations of such Person as lessee under Capital Leases
which have been or should be recorded as liabilities on a balance sheet of such
Person in accordance with GAAP, (d) all obligations of such Person to pay the
deferred purchase price of property or services

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    (excluding
trade accounts payable in the ordinary course of business), (e) all indebtedness
secured by a Lien on the property of such Person, whether or not such
indebtedness shall have been assumed by such Person (with the amount thereof
being measured as the fair market value of such property), (f) all obligations,
contingent or otherwise, with respect to letters of credit (whether or not
drawn), banker’s acceptances and surety bonds issued for the account of such
Person, (g) all Hedging Obligations of such Person, (h) all Contingent
Obligations of such Person, (i) all non-compete payment obligations and earn-out
and similar obligations, (j) all obligations of such Person in respect of
capital stock issued by such Person, to the extent that such Person is obligated
to redeem, retire or repurchase such capital stock or set apart any funds
therefor, on or prior to the date one year after the Maturity Date, (k) all
indebtedness of the types listed in (a) through (j) or (l) of any partnership of
which such Person is a general partner and (k) all obligations of such Person
under any synthetic lease transaction, where such obligations are considered
borrowed money indebtedness for tax purposes but the transaction is classified
as an operating lease in accordance with GAAP.

     

    Default means any
event that, if it continues uncured, will, with the lapse of time or the giving
of notice or both, constitute an Event of Default.

     

    Default Rate has the
meaning set forth in Section
2.4.1.

     

    Disposition means, as
to any asset or right of any Loan Party, (a) any sale, lease, assignment or
other transfer (other than to Borrower or any of its Wholly-Owned Domestic
Subsidiaries), (b) any loss, destruction or damage thereof or (c) any
condemnation, confiscation, requisition, seizure or taking thereof, excluding
(i) Dispositions in any Fiscal Year, the Net Cash Proceeds of which do not in
the aggregate exceed $250,000, or in the case of any Disposition described in
clause (b) above, $150,000, (ii) the sale or other transfer of Inventory in the
ordinary course of business and (iii) any transfers of cash.

     

    Dollar and $ mean lawful money
of the United States of America.

     

    Domestic Loan Party
Subsidiary means Borrower and each Domestic Subsidiary of
Borrower.

     

    Domestic Subsidiary
means any Subsidiary that is incorporated or organized under the laws of a State
within the United States of America or the District of Columbia.

     

    Durant means Durant
Biofuels, LLC, an Oklahoma limited liability company and wholly-owned Subsidiary
of EBOF, but, for avoidance of doubt, not a Loan Party hereunder.

     

    EBITDA means, for any
period, Consolidated Net Income for such period plus, to the extent deducted in
determining such Consolidated Net Income for such period, (i) Interest Expense,
(ii) income tax expense, (iii) depreciation and amortization,
(iv)  transaction expenses incurred in connection with the financing
contemplated by this Agreement, and (v) Restricted Payments paid pursuant to
Section
7.4.

     

    EBOF has the meaning
set forth in the Preamble.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Environmental Claims
means all claims, however asserted, by any governmental, regulatory or judicial
authority or other Person alleging potential liability or responsibility under
or for violation of any Environmental Law, or for release or injury to the
environment or any Person or property or natural resources.

     

    Environmental Laws
means all present or future federal, state or local laws, statutes, common law
duties, rules, regulations, ordinances and codes, including all amendments,
together with all administrative orders, directed duties, requests, licenses,
authorizations and permits of, and agreements with, any Governmental Authority,
in each case relating to any matter arising out of or relating to health and
safety, or pollution or protection of the environment, natural resources or
workplace, including any of the foregoing relating to the presence, use,
production, recycling, reclamation, generation, handling, transport, treatment,
storage, disposal, distribution, discharge, release, emission, control, cleanup
or investigation or management of any Hazardous Substance.

     

    ERISA means the
Employee Retirement Income Security Act of 1974, as amended.

     

    Event of Default
means any of the events described in Section
8.1.

     

    Excess Cash Flow
means, for any Fiscal Quarter, the remainder of (a) the sum of
(i) EBITDA for such Fiscal Quarter, plus (ii) any
net decrease in Adjusted Working Capital during such Fiscal Quarter, minus (b) the
sum, without duplication, of (i) scheduled repayments of principal of the
Loan and other Debt of Borrower and its Subsidiaries permitted by Section 7.1 made
during such Fiscal Quarter, plus (ii) any
voluntary prepayments of the Loan pursuant to Section 2.5.1 during
such Fiscal Quarter, plus (iii) all
federal, state, local and foreign income taxes paid in cash by Borrower and its
Subsidiaries during such Fiscal Quarter, plus (iv) all
Interest Expense in respect of Debt permitted in accordance with Section 7.1 paid in
cash by Borrower and its Subsidiaries during such Fiscal Quarter, plus (v)  any
net increase in Adjusted Working Capital during such Fiscal Quarter, all as
determined by Agent for such period.

     

    Excluded Taxes has
the meaning set forth in Section
3.1(a).

     

    Executive Order 13224
has the meaning set forth in Section
5.21.1.

     

    Exercisable Shares
has the meaning set forth in Section
6.11.

     

    Existing Loan means
the “Loan” (as defined in the Original Credit Agreement) equal in amount to
$26,700,000 on the Closing Date.

     

    Fee Letter means,
that certain letter agreement dated as of even date herewith between Agent and
Borrower, as amended, restated or otherwise modified from time to time, which
supersedes and replaces the Original Fee Letter.

     

    First Interest Reserve
Period has the meaning set forth in Section
2.4.2.

     

    Fiscal Quarter means
a fiscal quarter of a Fiscal Year.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Fiscal Year means the
fiscal year of Borrower and its Subsidiaries, which period shall be the 12-month
period ending on December 31 of each year.

     

    Fixed Charge Coverage
Ratio means, for any Computation Period, the ratio of (a) the total for
such Computation Period of EBITDA minus all Capital
Expenditures to (b) the sum for such Computation Period of (i) Interest Expense
of Borrower and its
Subsidiaries accrued during such period and payable in cash, plus (ii) required
payments of principal of Debt (including the Loan), (iii) income tax expense,
plus (iv) dividends paid by Earth Leasing, Inc. during such period except as
then permitted to be paid pursuant to Section
7.4(iii).

     

    Foreign Lender means
any Lender that is not a United States person under and as defined in Section
7701(a)(30) of the IRC.

     

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

     

    Fourth Third has the
meaning set forth in the preamble hereto.

     

    FRB means the Board
of Governors of the Federal Reserve System or any successor
thereto.

     

    GAAP means generally
accepted accounting principles in effect in the United States of America set
forth from time to time in the opinions and pronouncements of the Accounting
Principles Board and the American Institute of Certified Public Accountants and
statements and pronouncements of the Financial Accounting Standards Board (or
agencies with similar functions of comparable stature and authority within the
U.S. accounting profession), which are applicable to the circumstances as of the
date of determination.

     

    Gas Supply and Hedge
Contracts, means, collectively, the Gas Price Hedge Agreement, dated June
2006, between Apollo Resources International, Inc. and Arizona LNG and the Gas
Sale Purchase and Service Agreement, dated November 1, 2005, between BP Energy
Company and Arizona LNG, as each may be amended, restated or otherwise modified
from time to time.

     

    Governmental
Authority means any nation or government, any state or other political
subdivision thereof, any central bank (or similar monetary or regulatory
authority) thereof, any entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government, and any
corporation or other entity owned or controlled, through stock or capital
ownership or otherwise, by any of the foregoing.

     

    Guarantee and Collateral
Agreement means the Guarantee and Collateral Agreement, dated as of the
Closing Date, made by each Loan Party and other grantor or pledgor signatory
thereto in favor of Agent, as amended, restated or otherwise modified from time
to time.

     

    Hazardous Substances
means any waste, chemical, substance, or material listed, defined, classified,
or regulated as a hazardous waste, hazardous substance, pollutant, contaminant,
toxic substance, or hazardous, dangerous or radioactive material, chemical or
waste or otherwise regulated by any Environmental Law, including, without
limitation, any petroleum or any derivative, waste, or byproduct thereof, radon,
asbestos, and polychlorinated biphenyls.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Hedging Obligation
means, with respect to any Person, any liability of such Person under any
interest rate, currency or commodity swap agreement, cap agreement or collar
agreement, and any other agreement or arrangement designed to protect a Person
against fluctuations in interest rates, currency exchange rates or commodity
prices.  The amount of any Person’s obligation in respect of any
Hedging Obligation shall be deemed to be the incremental obligation that would
be reflected in the financial statements of such Person in accordance with
GAAP.

     

    Indemnified
Liabilities has the meaning set forth in Section
10.5.

     

    Initial Loan has the
meaning provided in Section
2.1(a).

     

    Intercreditor
Agreement means the intercreditor agreement, dated as of the Original
Closing Date, between Agent and the holder of Senior Debt (or a representative
thereof), in form and substance satisfactory to Agent, as amended or modified
from time to time.

     

    Interest Expense
means for any period the consolidated interest expense of Borrower and its
Subsidiaries for such period (including all imputed interest on Capital
Leases).

     

    Inventory means all
the “inventory” (as such term is defined in the UCC) of the Borrower and its
Subsidiaries, including, but not limited to, all merchandise, raw materials,
parts, supplies, work-in-process and finished goods intended for sale, together
with all the containers, packing, packaging, shipping and similar materials
related thereto, and including such inventory as is temporarily out of the
Borrower’s or such Subsidiary’s custody or possession, including inventory on
the premises of others and items in transit.

     

    Investment means,
with respect to any Person, (a) the purchase of any debt or equity security of
any other Person, (b) the making of any loan or advance to any other Person, (c)
becoming obligated with respect to a Contingent Obligation in respect of
obligations of any other Person (other than travel and similar advances to
employees in the ordinary course of business) or (d) the making of an
Acquisition.

     

    IRC means the
Internal Revenue Code of 1986, as amended.

     

    Key Employees means
(i) Phil Marcum, as Chief Executive Officer of Borrower, and (ii) Brad Gabbard,
as Chief Financial Office of Borrower.

     

    Key Employment
Agreements means employment agreements, to be in form and substance
satisfactory to Agent, executed on or before the Closing Date between the Key
Employees and Borrower respecting the employment of the Key Employees by
Borrower.

     

    Last Pre Closing Audit
Date means December 31, 2007.

     

    Legal Costs means,
with respect to any Person, (a) all reasonable fees and charges of any counsel,
accountants, auditors, appraisers, consultants and other professionals to such
Person, (b) the reasonable allocable cost of internal legal services of such
Person and all reasonable disbursements of such internal counsel and (c) all
court costs and similar legal expenses.

     

    Lender Party has the
meaning set forth in Section
10.5.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Lenders has the
meaning set forth in the Preamble.

     

    LIBOR Rate means, as
of any Calculation Date, the rate per annum (rounded upwards, if necessary, to
the nearest 1/100 of 1%) equal to (i) the offered rate for deposits in Dollars
for the period of one month commencing on such Calculation Date and for the
amount of the Loan, that appears on Dow Jones Market Service (formerly known as
the Telerate Service) at 11:00 a.m. London time (or, if not so appearing, as
published in the “Money Rates” section of The Wall Street
Journal or another national publication selected by Agent) on such
Calculation Date, divided by (ii) the sum of one minus the daily average during
such period of one month of the aggregate maximum reserve requirement (expressed
as a decimal) then imposed under Regulation D of the FRB for “Eurocurrency
Liabilities” (as defined therein); provided, however, that in no
event shall the LIBOR Rate be a rate equal to less than 2.50% per
annum.

     

    Lien means, with
respect to any Person, any interest granted by such Person in any real or
personal property, asset or other right owned or being purchased or acquired by
such Person which secures payment or performance of any obligation and shall
include any mortgage, lien, encumbrance, charge or other security interest of
any kind, whether arising by contract, as a matter of law, by judicial process
or otherwise.

     

    Loan has the meaning
provided in Section
2.1(b).

     

    Loan Commitment means
a commitment to make a loan pursuant to Section 2.1 on the
Closing Date in the aggregate principal amount for all Lenders of
$34,000,000.  The Loan Commitment shall terminate upon the making of
the Loan.

     

    Loan Documents means
this Agreement, the Notes, the Collateral Documents, the Fee Letter, the
Intercreditor Agreement, the Black Forest Subordination Agreement, the Original
Loan Documents (to the extent not superseded or replaced pursuant hereto) and
all other documents, instruments and agreements delivered in connection with the
foregoing, all as amended, restated or otherwise modified from time to
time.

     

    Loan Party means
Parent, Borrower and each Subsidiary of Borrower.

     

    Loan Party Subsidiary
means Borrower and each Subsidiary of Borrower.

     

    Margin Stock means
any “margin stock” as defined in Regulation T, U or X of the FRB.

     

    Material Adverse
Effect means (a) a material adverse change in, or a material adverse
effect upon, the operations, assets, business, prospects, properties or
condition (financial or otherwise) of Loan Parties taken as a whole, (b) a
material impairment of the ability of any Loan Party to perform in any material
respect any of its Obligations under any Loan Document or (c) a material adverse
effect upon any substantial portion of the Collateral under the Collateral
Documents or upon the legality, validity, binding effect or enforceability
against any Loan Party of any Loan Document.

     

    Maturity Date means
June __, 2010.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Mortgage means a
mortgage, deed of trust, leasehold mortgage or similar instrument granting Agent
a Lien on a real property interest of any Loan Party, each as amended, restated
or otherwise modified from time to time.

     

    Multiemployer Pension
Plan means a multiemployer plan, as defined in Section 4001(a)(3) of
ERISA, to which Borrower or any member of the Controlled Group may have any
liability.

     

    Net Cash Proceeds
means:

     

    (a)           with
respect to any Disposition, the aggregate cash proceeds (including cash proceeds
received pursuant to policies of insurance and by way of deferred payment of
principal pursuant to a note, installment receivable or otherwise, but only as
and when received) received by any Loan Party pursuant to such Disposition net
of (i) the reasonable direct costs relating to such Disposition (including sales
commissions and legal, accounting and investment banking fees, commissions and
expenses), (ii) any portion of such proceeds deposited in an escrow account
pursuant to the documentation relating to such Disposition (provided that such
amounts shall be treated as Net Cash Proceeds upon their release from such
escrow account to the applicable Loan Party), (iii) taxes paid or reasonably
estimated by Borrower to be payable as a result thereof (after taking into
account any available tax credits or deductions and any tax sharing
arrangements), (iv) amounts required to be applied to the repayment of any Debt
secured by a Lien (permitted hereunder) prior to the Lien of Agent on the asset
subject to such Disposition, and (v) so long as no Event of Default exists (or
if an Event of Default exists, only with the prior written consent of Required
Lenders) (A) with respect to any Disposition described in clause (a) of the
definition thereof, all money actually applied within 180 days, or within 360
days pursuant to a binding agreement executed within 180 days, to replace such
assets with assets performing the same or similar functions, and (B) with
respect to any Disposition described in clause (b) or (c) of the definition
thereof, all money actually applied within 180 days, or within 360 days pursuant
to a binding agreement executed within 180 days, to repair, replace or
reconstruct damaged property or property affected by loss, destruction, damage,
condemnation, confiscation, requisition, seizure or taking; and

     

    (b)           with
respect to any issuance of equity securities, the aggregate cash proceeds
received by Parent, Borrower or any Subsidiary of Borrower or of Durant Fuels,
LLC pursuant to such issuance, net of the reasonable direct costs relating to
such issuance (including reasonable sales and underwriter’s
commission).

     

    Non-Excluded Taxes
has the meaning set forth in Section
3.1(a).

     

    Note means a
promissory note substantially in the form of Exhibit C, as the
same may be replaced, substituted, amended, restated or otherwise modified from
time to time.

     

    Obligations means all
liabilities, indebtedness and obligations (monetary (including interest accrued
at the rate provided in the applicable Loan Document after the commencement of a
bankruptcy proceeding whether or not a claim for such interest is allowed) or
otherwise) of

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    any Loan
Party under this Agreement, any other Loan Document, any Collateral Document or
any other document or instrument executed in connection herewith or therewith
and all Hedging Obligations permitted hereunder which are owed to any Lender or
its Affiliate, in each case howsoever created, arising or evidenced, whether
direct or indirect, absolute or contingent, now or hereafter existing, or due or
to become due.

     

    OFAC has the meaning
set forth in Section
6.4(a).

     

    Original Closing Date
means February 28, 2007.

     

    Original Credit
Agreement has the meaning set forth in the Preamble.

     

    Original Fee Letter
means the Fee Letter, dated the Original Closing Date, between Borrower and
Agent, as amended pursuant to a letter agreement, dated June 21, 2007, between
Borrower and Agent.

     

    Original Loan
Documents shall mean all “Loan Documents” (as that term is defined in the
Original Loan Agreement) existing on the Closing Date.

     

    Paid in Full means,
with respect to any Obligations, the payment in full in cash and performance of
all such Obligations.

     

    Parent has the
meaning set forth in the Preamble.

     

    Participant has the
meaning set forth in Section
10.8.2.

     

    PBGC means the
Pension Benefit Guaranty Corporation and any entity succeeding to any or all of
its functions under ERISA.

     

    Pension Plan means a
“pension plan”, as such term is defined in Section 3(2) of ERISA, which is
subject to Title IV of ERISA (other than a Multiemployer Pension Plan), and to
which Borrower or any member of the Controlled Group may have any liability,
including any liability by reason of having been a substantial employer within
the meaning of Section 4063 of ERISA at any time during the preceding five
years, or by reason of being deemed to be a contributing sponsor under Section
4069 of ERISA.

     

    Person means any
natural person, corporation, partnership, trust, limited liability company,
association, Governmental Authority or unit, or any other entity, whether acting
in an individual, fiduciary or other capacity.

     

    Pro Rata Share means,
with respect to any Lender, the applicable percentage (as adjusted from time to
time in accordance with the terms hereof) specified opposite such Lender’s name
on Annex I (or
in such Lender’s Assignment Agreement) which corresponds to the Loan Commitment,
which percentage shall be with respect to the Loan if the Loan Commitment has
terminated.

     

    Replacement Lender
has the meaning set forth in Section
3.5(b).

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Required Lenders
means Lenders having Pro Rata Shares the aggregate Dollar equivalent amount of
which equals or exceeds more than 50% of the outstanding Loan,
collectively.

     

    Securitization has
the meaning set forth in Section
10.9.

     

    Senior Debt shall
mean indebtedness that is incurred by the Borrower under a revolving credit
facility that has been approved by Agent and that is subject to, and the Liens,
if any, securing which are subject to, the Intercreditor Agreement.

     

    Senior Debt Documents
means the “Revolving Credit Documents” as defined in the Interecreditor
Agreement.

     

    Share Exchange has
the meaning set forth in the Preamble.

     

    Share Exchange
Agreement has the meaning set forth in the Preamble.

     

    Share Rights
Agreement means that certain Master Rights Agreement, dated as of the
Closing Date, made between Parent and Medley, as it may be supplemented,
modified or amended from time to time.

     

               Subsidiary means,
with respect to any Person, a corporation, partnership, limited liability
company or other entity of which such Person owns, directly or indirectly, such
number of outstanding shares or other equity interests as to have more than 50%
of the ordinary voting power for the election of directors or other managers of
such corporation, partnership, limited liability company or other
entity.  Unless the context otherwise requires, each reference to
Subsidiaries herein shall be a reference to Subsidiaries of
Borrower.

     

    Tax Returns has the
meaning set forth in Section
5.12.

     

    Titled Vehicle means
a vehicle owned by a Loan Party for which a certificate of title has been issued
by any jurisdiction pursuant to a statute described in section 9-311(a)(2) or
9-311(a)(3) of the UCC, a security interest in which against such Loan Party can
be perfected only by notation on the certificate of title.

     

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

     

    Wholly-Owned Domestic
Subsidiary means any Wholly-Owned Subsidiary that is a Domestic
Subsidiary.

     

    Wholly-Owned
Subsidiary means, as to any Subsidiary, all of the equity interests of
which (except directors’ qualifying shares) are at the time directly or
indirectly owned by Borrower and/or another Wholly-Owned Subsidiary of
Borrower.

     

    1.2.           Interpretation.

     

    In the
case of this Agreement and each other Loan Document, (a) the meanings of defined
terms are equally applicable to the singular and plural forms of the defined
terms; (b)

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Annex,
Exhibit, Schedule and Section references are to such Loan Document unless
otherwise specified; (c) the term “including” is not limiting and means
“including but not limited to”; (d) in the computation of periods of time from a
specified date to a later specified date, the word “from” means “from and
including”; the words “to” and “until” each mean “to but excluding”, and the
word “through” means “to and including”; (e) unless otherwise expressly provided
in such Loan Document, (i) references to agreements and other contractual
instruments shall be deemed to include all subsequent amendments and other
modifications thereto, but only to the extent such amendments and other
modifications are not prohibited by the terms of any Loan Document, and (ii)
references to any statute or regulation shall be construed as including all
statutory and regulatory provisions amending, replacing, supplementing or
interpreting such statute or regulation; (f) this Agreement and the other Loan
Documents may use several different limitations, tests or measurements to
regulate the same or similar matters, all of which are cumulative and each shall
be performed in accordance with its terms; and (g) this Agreement and the other
Loan Documents are the result of negotiations among and have been reviewed by
counsel to Agent, Borrower, Lenders and the other parties hereto and thereto and
are the products of all parties; accordingly, they shall not be construed
against Agent or Lenders merely because of Agent’s or Lenders’ involvement in
their preparation.

     

    
      	
              Section
      2.

            	
              Credit
      Facilities.

            

    

     

    2.1.           Commitments.

     

    On the terms and subject to the
conditions of this Agreement, each Lender, severally and for itself alone,
agrees to lend to Borrower on the Closing Date such Lender’s applicable Pro Rata
Share of the Loan Commitment (the “Loan”).   Any
portion of the Loan which is repaid or prepaid, in whole or in part, may not be
reborrowed.  A portion of the proceeds of the Loan, equal in amount to
the then unpaid principal balance of the Existing Loan, together with all
accrued interest thereon, shall be retained by Agent and used by Agent to
refinance the Existing Loan by its extension and renewal pursuant hereto; a
portion of such proceeds shall be returned by Agent for its own account to pay
certain fees owing to it in the Closing Date pursuant to the Fee Letter; and the
remainder of the proceeds of the Loan shall be disbursed to a deposit account of
Borrower with JPMorgan Chase Bank, N.A. specified by Borrower in writing to
Agent, thereafter to be used by Borrower to pay closing costs associated
herewith, to pay certain accounts payable, to finance the making of certain
Capital Expenditures, and for working capital.

     

    2.2.           Omitted.

     

    2.3.           Loan
Accounting.

     

    2.3.1.                Recordkeeping.

     

    Agent, on
behalf of each Lender, shall record in its records the date and amount of the
share of the Loan made by each Lender and each repayment thereof.  The
aggregate unpaid principal amount so recorded shall be rebuttably presumptive
evidence of the principal amount of the Loan owing and unpaid.  The
failure to so record any such amount or any error in so recording any such
amount shall not, however, limit or otherwise affect the Obligations
of

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Borrower
hereunder or under any Note to repay the principal amount of the Loan hereunder,
together with all interest accruing thereon.

     

    2.3.2.                Notes.

     

    At the
request of any Lender, the share of the Loan made by such Lender shall be
evidenced by a Note, with appropriate insertions, payable to the order of such
Lender in a face principal amount equal to the sum of such Lender’s Pro Rata
Share of the Loan Commitment and payable in such amounts and on such dates as
are set forth herein.

     

    2.4.           Interest.

     

    2.4.1.                Interest
Rates.

     

    Borrower
promises to pay interest on the unpaid principal amount of the Loan for the
period commencing on the Closing Date until the Loan is Paid in Full at a rate
per annum equal to the sum of the LIBOR Rate as in effect on the Calculation
Date coinciding with (in the case of the Closing Date) or immediately preceding
(in the case of any other Calculation Date), the interest payment date on which
such interest is payable plus the Applicable Margin; provided, that (i) at any
time an Event of Default exists, if requested by the Agent or the Required
Lenders, the Applicable Margin corresponding to the Loan shall be increased by
two percentage points per annum (and, in the case of Obligations other than the
Loan, such Obligations shall bear interest at the LIBOR Rate plus the Applicable
Margin plus two percentage points per annum) (any such increased rate, the
“Default
Rate”), (ii) any such increase may thereafter be rescinded by Required
Lenders, notwithstanding Section 10.1, and
(iii) upon the occurrence of an Event of Default under Section 8.1.1 or
8.1.3, any such
increase described in the foregoing clause (i) shall occur
automatically.  In no event shall interest payable by Borrower to
Agent and Lenders hereunder exceed the maximum rate permitted under applicable
law, and if any such provision of this Agreement is in contravention of any such
law, such provision shall be deemed modified to limit such interest to the
maximum rate permitted under such law.

     

    2.4.2.                Interest Payment
Dates.

     

    Accrued
interest on the Loan shall be payable in advance on the Closing Date (for the
period beginning on the Closing Date and ending on June 30, 2008 and thereafter
on the first day of each calendar month (for such calendar month), and, to the
extent not paid in advance, upon a prepayment of the Loan in accordance with
Section 2.6 and
at maturity, in each case, in cash and, during the Interest Reserve Periods, as
provided in Section
2.4.2(b).  After maturity and at any time an Event of Default
exists, all accrued interest on the Loan shall be payable in cash on demand at
the rates specified in Section
2.4.1.

     

    2.4.3.                Setting and Notice of LIBOR
Rates.

     

    The
applicable LIBOR Rate as of each Calculation Date shall be determined by Agent,
and notice thereof shall be given by Agent promptly to Borrower and each
Lender.  Each determination of the applicable LIBOR Rate by Agent
shall be conclusive and binding upon the parties hereto, in the absence of
demonstrable error.  Agent shall, upon written request of

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Borrower
or any Lender, deliver to Borrower or such Lender a statement showing the
computations used by Agent in determining any applicable LIBOR Rate
hereunder

     

    2.4.4.                Computation of
Interest.

     

    Interest
shall be computed for the actual number of days elapsed on the basis of a year
of 360 days.

     

    2.5.           Fees.

     

    2.5.1.                Fourth Third’s
Fees.

     

    Borrower
agrees to pay to Fourth Third, for Fourth Third’s account, the fees set forth in
the Fee Letter.

     

    2.6.           Prepayment.

     

    2.6.1.                Voluntary
Prepayment.

     

    Borrower
may from time to time at any time, on at least ninety (90) days’ written notice
to Agent (which shall promptly advise each Lender thereof) not later than 12:00
noon New York time on such day, prepay the Loan in whole or in part without
penalty or premium so long as any such prepayment is on the first day of a
calendar month, and is accompanied by all accrued and unpaid interest on the
Loan.  Such notice to Agent shall specify the date and amount of
prepayment.  Any such partial prepayment shall be in an amount greater
than or equal to $1,000,000 or a higher integral multiple of
$500,000.

     

    2.6.2.                Mandatory
Prepayment.

     

    Borrower
shall prepay the Loan until Paid in Full at the following times and in the
following amounts:

     

    (i)           concurrently
with the receipt by any Loan Party of any Net Cash Proceeds from any
Disposition, in an amount equal to such Net Cash Proceeds; and

     

    (ii)           concurrently
with the receipt by any Loan Party of any Net Cash Proceeds from any issuance of
its equity securities (other than equity securities that are issued to (x)
Parent, (y) management of Parent, or (z) to Persons that as of the date hereof
hold equity in Parent; but, without limitation of the foregoing, and for
avoidance of any doubt, inclusive of any equity securities issued pursuant to
the contemplated PIPE or any similar offering whether to Persons that as of the
date hereof hold equity in Parent or otherwise) in an amount equal to such Net
Cash Proceeds; and

     

    (iii)           within
forty-five (45) days after the end of each Fiscal Quarter (commencing with the
Fiscal Quarter ending September 30, 2008), in an amount equal to fifty percent
(50%) of the Excess Cash Flow earned during such prior Fiscal Quarter, until the
Loan is reduced in principal amount to $30,000,000, and, thereafter, in an
amount equal to twenty-five percent (25%) of the Excess Cash Flow earned during
such prior Fiscal Quarter.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Notwithstanding clause (ii) above, in
the event that Parent issues equity securities pursuant to the contemplated PIPE
or enters into any similar transaction involving the sale or exchange of equity
securities, debt or convertible debt of Parent subsequent to the Closing Date,
after Borrowers have caused the Loan to be reduced in principal amount to not
less than $30,000,000 from the Net Cash Proceeds therefrom, Borrowers shall, to
the extent provided in and permitted by the Black Forest Subordination
Agreement, pay the then outstanding principal amount of the Black Forest Note
from any remaining Net Cash Proceeds, until it is paid in full, after which any
remaining Net Cash Proceeds may be used by Borrower to prepay further the Loan,
to repay Senior Debt or for any other corporate purpose not in contravention of
any terms of this Agreement.

     

    

    2.6.3.                All
Prepayments.

     

    Any
prepayment of the Loan on any day other than the first day of a calendar
month  shall include interest on the principal amount being repaid to
the extent not paid in advance and shall be subject to Section
3.3.

     

    2.7.           Repayment.

     

    The
outstanding principal balance of the Loan shall be Paid in Full, for the account
of each Lender according to its Pro Rata Share thereof, on the Maturity Date
unless accelerated sooner pursuant to Section
8.2.

     

    2.8.           Payment.

     

    2.8.1.                Making of
Payments.

     

    All
payments of principal of or interest on the Notes, and of all fees, shall be
made by Borrower to Agent without setoff, recoupment or counterclaim and in
immediately available funds at the deposit account of Agent in New York, New
York set forth on Annex II or at such other deposit account in New York
specified by Agent, in any case, not later than 1:00 p.m. New York time on the
date due, and funds received after that hour shall be deemed to have been
received by Agent on the following Business Day.  Agent shall promptly
remit to each Lender its share of all principal, interest and fee payments
received in collected funds by Agent for the account of such
Lender.  All payments under Section 3.2 shall be
made by Borrower directly to Lender entitled thereto.

     

    2.8.2.                Application of Payments and
Proceeds.

     

    (a)           Except
as set forth in Section 2.6.2, and
subject to the provisions of Sections 2.8.2(b)
below, each payment by Borrower hereunder shall be applied to such Obligations
as Borrower shall direct by notice to be received by Agent on or before the date
of such payment or, in the absence of such notice, as Agent shall determine in
its discretion.  Concurrently with each remittance to any Lender of
its share of any such payment, Agent shall advise such Lender as to the
application of such payment.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    (b)           If
an Event of Default or an Acceleration Event shall have occurred and be
continuing, notwithstanding anything herein or in any other Loan Document to the
contrary, Agent shall apply all or any part of payments in respect of the
Obligations and proceeds of Collateral, in each case as received by Agent, to
the payment of the Obligations in the following order:

     

    (i)           FIRST,
to the payment of all fees, costs, expenses and indemnities due and owing to
Agent under this Agreement or any other Loan Document, and any other Obligations
owing to Agent in respect of sums advanced by Agent to preserve or protect the
Collateral or to preserve or protect its security interest in the Collateral
(whether or not such Obligations are then due and owing to Agent), until Paid in
Full;

     

    (ii)           SECOND,
to the payment of all fees, costs, expenses and indemnities due and owing to
Lenders, pro rata based on each Lender’s Pro Rata Share thereof, until Paid in
Full;

     

    (iii)           THIRD,
to the payment of all accrued and unpaid interest due and owing to Lenders, pro
rata based on each Lender’s Pro Rata Share thereof, until Paid in
Full;

     

    (iv)           FOURTH,
to the payment of all principal of the Loan due and owing, pro rata based on
each Lender’s Pro Rata Share thereof, until Paid in Full; and

     

    (v)           FIFTH,
to the payment of all other Obligations owing to each Lender, pro rata based on
each Lender’s Pro Rata Share thereof, until Paid in Full.

     

    2.8.3.                Payment
Dates.

     

    If any
payment of principal of or interest on the Loan, or of any fees, falls due on a
day which is not a Business Day, then such due date shall be extended to the
immediately following Business Day (unless such immediately following Business
Day is the first Business Day of a calendar month, in which case such due date
shall be the immediately preceding Business Day) and, in the case of principal,
additional interest shall accrue and be payable for the period of any such
extension.

     

    2.8.4.                Set-off.

     

    Borrower
agrees that Agent and each Lender and its Affiliates have all rights of set-off
and bankers’ lien provided by applicable law, and in addition thereto, Borrower
agrees that at any time an Event of Default has occurred and is continuing,
Agent and each Lender may apply to the payment of any Obligations of Borrower
hereunder, whether or not then due, any and all balances, credits, deposits,
accounts or moneys of Borrower then or thereafter with Agent or such
Lender.  Notwithstanding the foregoing, no Lender shall exercise any
rights described in the preceding sentence without the prior written consent of
Agent.

     

    2.8.5.                Proration of
Payments.

     

    If any
Lender shall obtain any payment or other recovery (whether voluntary,
involuntary, by application of set-off or otherwise, on account of principal of
or interest on the Loan, but excluding (i) any payment of principal or interest
made in accordance with the terms

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    of this
Agreement, and (ii) any payment pursuant to Section 3.1, 3.2, 3.5 or 10.8, then such
Lender shall purchase from the other Lenders such participations in the Loan
held by them as shall be necessary to cause such purchasing Lender to share the
excess payment or other recovery ratably with each of them; provided that if all
or any portion of the excess payment or other recovery is thereafter recovered
from such purchasing Lender, the purchase shall be rescinded and the purchase
price restored to the extent of such recovery.

     

    
      	
              Section
      3.

            	
              Yield
      Protection.

            

    

     

    3.1.           Taxes.

     

    (a)           Except
as otherwise provided in this Section 3.1, all
payments of principal and interest on the Loan and all other amounts payable
under any Loan Document shall be made free and clear of and without deduction
for any present or future income, excise, stamp, documentary, property or
franchise taxes and other taxes, fees, duties, levies, withholdings or other
charges of any nature whatsoever imposed by any taxing authority (“Taxes”), excluding
(i) taxes imposed on or measured by any Lender’s net income by the jurisdiction
under which such Lender is organized or conducts business, (ii) any branch
profit taxes imposed by the United States of America or any similar tax imposed
by any other jurisdiction in which a Lender is located and (iii) in the case of
any Foreign Lender (other than a Replacement Lender under Section 3.7(b)), any
withholding tax that (x) is in effect and would apply to amounts payable to such
Foreign Lender at the time such Foreign Lender becomes a party to this
Agreement, except to the extent of any additional amounts to which such Foreign
Lender’s assignor, if any, was entitled, at the time of such assignment, to
receive from the Borrower with respect to any withholding tax pursuant to this
Section 3.1, or
(y) would not have been imposed but for Foreign Lender’s failure (other than as
a result of a change in law, rule, regulation or treaty or in the
administration, interpretation or application thereof by any Governmental
Authority) to comply with Section 3.1(c)
(collectively, “Excluded Taxes” and
all such non-Excluded Taxes, “Non-Excluded
Taxes”).  If any withholding or deduction from any payment to
be made by Borrower hereunder is required in respect of any Taxes pursuant to
any applicable law, rule or regulation, then Borrower shall:  (i) pay
directly to the relevant authority the full amount required to be so withheld or
deducted; (ii) within thirty (30) days after the date of any such payment of
Taxes, forward to Agent an official receipt or other documentation satisfactory
to Agent evidencing such payment to such authority; and (iii) in the case of
Non-Excluded Taxes, pay to Agent for the account of Lenders such additional
amount or amounts as is necessary to ensure that the net amount actually
received by each Lender will equal the full amount such Lender would have
received had no such withholding or deduction (including deductions applicable
to any increase to any amount under this Section 3.1) been
required.

     

    (b)           The
Borrower shall reimburse and indemnify, within 30 days after receipt of demand
therefor (with copy to the Agent), Agent and each Lender for all Non-Excluded
Taxes (including any net additional Taxes imposed by any jurisdiction on amounts
payable under this Section 3.1) paid by
such Agent or such Lender and any liabilities arising therefrom or with respect
thereto (including any penalty, interest or expense), whether or not such Taxes
were correctly or legally asserted.  A certificate of the Agent or
such Lender (or of the Agent on behalf of such Lender) claiming any compensation
under this clause (c), setting forth the amounts to be

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    paid
thereunder and delivered to the Borrower with copy to the Agent, shall be
conclusive, binding and final for all purposes, absent manifest
error.

     

    (c)           Each
Foreign Lender that (i) is a party hereto on the Closing Date or (ii) becomes an
assignee of an interest under this Agreement under Section 10.8.1 after
the Closing Date (unless such Lender was already a Lender hereunder immediately
prior to such assignment) shall execute and deliver to Borrower and Agent one or
more (as Borrower or Agent may reasonably request) properly and duly completed
and executed Forms W 8ECI, W 8BEN, W 8IMY (as applicable) or successor form or
other applicable form, certificate or document prescribed by the United States
Internal Revenue Service certifying as to such Lender’s entitlement to an
exemption from or reduction in U.S. withholding taxes with respect to payments
to be made to such Foreign Lender under the Loan
Documents.  Notwithstanding any other provision of this Section 3.1 to the
contrary, no Lender shall be required to deliver any form, certificate or
document pursuant to this paragraph that it is not legally able to
deliver.

     

    (d)           Each
Lender that is not a Foreign Lender (other than any such Lender that is may be
treated as an “exempt recipient” under IRC Section 1.6049-4(c)(1)) that (i) is a
party hereto on the Closing Date or (ii) becomes an assignee of an interest
under this Agreement under Section 10.8.1 after
the Closing Date (unless such Lender was already a Lender hereunder immediately
prior to such assignment) shall execute and deliver to Borrower and Agent one or
more (as Borrower or Agent may reasonably request) properly and duly completed
and executed Form W 9 (or any successor form), certifying as to such Lender’s
entitlement to an exemption from U.S. backup withholding tax with respect to
payments to be made to such Foreign Lender under the Loan
Documents.  Notwithstanding any other provision of this Section 3.1 to the
contrary, no Lender shall be required to deliver any form, certificate or
document pursuant to this paragraph that it is not legally able to
deliver.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    3.2.           Increased
Cost.

     

    (a)           If,
after the Closing Date, the adoption of, or any change in, any applicable law,
rule or regulation, or any change in the interpretation or administration of any
applicable law, rule or regulation by any Governmental Authority, central bank
or comparable agency charged with the interpretation or administration thereof,
or compliance by any Lender with any request or directive (whether or not having
the force of law) of any such authority, central bank or comparable
agency:  (i) shall impose, modify or deem applicable any reserve
(including any reserve imposed by the FRB, but excluding any reserve included in
the determination of the LIBOR Rate pursuant to Section 2.4), special
deposit or similar requirement against assets of, deposits with or for the
account of, or credit extended by any Lender; or (ii) shall impose on any Lender
any other condition affecting its Loan, its Note or its obligation to make the
Loan; and the result of anything described in clauses (i) above and (ii) is to
increase the cost to (or to impose a cost on) such Lender of making or
maintaining the Loan, or to reduce the amount of any sum received or receivable
by such Lender under this Agreement or under its Note with respect thereto, then
upon demand by such Lender (which demand shall be accompanied by a statement
setting forth the basis for such demand and a calculation of the amount thereof
in reasonable detail, a copy of which shall be furnished to Agent), Borrower
shall pay directly to such Lender such additional amount as will compensate such
Lender for such increased cost or such reduction, so long as such amounts have
accrued on or after the day which is 180 days prior to the date on which such
Lender first made demand therefor; provided, that if the event giving rise to
such costs or reductions has retroactive effect, such 180 day period shall be
extended to include the period of retroactive effect.

     

    (b)           If
any Lender shall reasonably determine that any change in, or the adoption or
phase-in of, any applicable law, rule or regulation regarding capital adequacy,
or any change in the interpretation or administration thereof by any
Governmental Authority, central bank or comparable agency charged with the
interpretation or administration thereof, or the compliance by any Lender or any
Person controlling such Lender with any request or directive regarding capital
adequacy (whether or not having the force of law) of any such authority, central
bank or comparable agency, has or would have the effect of reducing the rate of
return on such Lender’s or such controlling Person’s capital as a consequence of
such Lender’s Commitments hereunder to a level below that which such Lender or
such controlling Person could have achieved but for such change, adoption,
phase-in or compliance (taking into consideration such Lender’s or such
controlling Person’s policies with respect to capital adequacy) by an amount
deemed by such Lender or such controlling Person to be material, then from time
to time, upon demand by such Lender (which demand shall be accompanied by a
statement setting forth the basis for such demand and a calculation of the
amount thereof in reasonable detail, a copy of which shall be furnished to
Agent), Borrower shall pay to such Lender such additional amount as will
compensate such Lender or such controlling Person for such reduction, so long as
such amounts have accrued on or after the day which is 180 days prior to the
date on which such Lender first made demand therefor; provided, that if the
event giving rise to such costs or reductions has retroactive effect, such 180
day period shall be extended to include the period of retroactive
effect.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    3.3.           Funding
Losses.

     

    Borrower
hereby agrees that upon demand by any Lender (which demand shall be accompanied
by a statement setting forth the basis for the amount being claimed, a copy of
which shall be furnished to Agent), Borrower will indemnify such Lender against
any net loss or expense which such Lender may sustain or incur (including any
net loss or expense incurred by reason of the liquidation or reemployment of
deposits or other funds acquired by such Lender to fund or maintain the Loan),
as reasonably determined by such Lender, as a result of (a) any payment or
prepayment of the Loan of such Lender on a date other than first day of a
calendar month or (b) the failure of Borrower to borrow the Loan on the Closing
Date.  For the purposes of this Section 3.3, all
determinations shall be made as if such Lender had actually funded and
maintained the Loan during each one month period for the Loan through the
purchase of deposits having a maturity corresponding to such one month period
and bearing an interest rate equal to the LIBOR Rate for such one month
period.

     

    3.4.           Manner of Funding; Alternate
Funding Offices.

     

    Notwithstanding
any provision of this Agreement to the contrary, each Lender shall be entitled
to fund and maintain its funding of all or any part of its Pro Rata Share of the
Loan in any manner it may determine at its sole discretion.  Each
Lender may, if it so elects, fulfill its commitment to make its advance of the
Loan by causing any office, branch or Affiliate of such Lender to make such
advance of the Loan; provided that in such event for the purposes of this
Agreement such advance of the Loan shall be deemed to have been made by such
Lender and the obligation of Borrower to repay such advance of the Loan shall
nevertheless be to such Lender and shall be deemed held by it, to the extent of
such Loan, for the account of such office, branch or Affiliate.

     

    3.5.           Mitigation of Circumstances;
Replacement of Lenders.

     

    (a)           Each
Lender shall promptly notify Borrower and Agent of any event of which it has
knowledge which will result in, and will use reasonable commercial efforts
available to it (and not, in such Lender’s sole judgment, otherwise
disadvantageous to such Lender) to mitigate or avoid, any obligation by Borrower
to pay any amount pursuant to Section 3.1 or 3.2.  Without
limiting the foregoing, each Lender will designate a different funding office if
such designation will avoid (or reduce the cost to Borrower of) any event
described above and such designation would not, in such Lender’s sole judgment,
be otherwise disadvantageous to such Lender.

     

    (b)           If
(i) Borrower becomes obligated to pay additional amounts to any Lender pursuant
to Section 3.1
or 3.2, or (ii)
any Lender does not consent to any matter requiring its consent under Section 10.1 when the
Required Lenders have otherwise consented to such matter, then Borrower may
within 90 days thereafter designate another bank which is acceptable to Agent in
its reasonable discretion (such other bank being called a “Replacement Lender”)
to purchase the Pro Rata Share of the Loan of such Lender and such Lender’s
rights hereunder, without recourse to or warranty by, or expense to, such
Lender, for a purchase price equal to the outstanding principal amount of the
Pro Rata Share of the Loan payable to such Lender plus any accrued but unpaid
interest on such Pro Rata Share of the Loan and all accrued but unpaid
fees

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    owed to
such Lender and any other amounts payable to such Lender under this Agreement,
and to assume all the obligations of such Lender hereunder, and, upon such
purchase and assumption (pursuant to an Assignment Agreement), such Lender shall
no longer be a party hereto or have any rights hereunder (other than rights with
respect to indemnities and similar rights applicable to such Lender prior to the
date of such purchase and assumption) and shall be relieved from all obligations
to Borrower hereunder, and the Replacement Lender shall succeed to the rights
and obligations of such Lender hereunder.

     

    3.6.           Conclusiveness of
Statements; Survival.

     

    (a)           Determinations
and statements of any Lender pursuant to Section 3.1, 3.2, or 3.3 shall be
conclusive absent demonstrable error.  Lenders may use reasonable
averaging and attribution methods in determining compensation under Sections 3.1, 3.2 and 3.3, and the
provisions of such Sections shall survive repayment of the Loan, cancellation of
the Notes and termination of this Agreement.

     

    
      	
              Section
      4.

            	
              Conditions
      Precedent.

            

    

     

    The
obligation of each Lender to make its Pro Rata Share of the Loan is subject to
the following conditions precedent, each of which shall be satisfactory in all
respects to Agent:

     

    4.1.           Credit
Extension.

     

    The
obligation of Lenders to fund the Loan is subject to the following conditions
precedent, each of which shall be satisfactory in all respects to
Agent:

     

    4.1.1.                Omitted.

     

    4.1.2.                Omitted.

     

    4.1.3.                Interest and
Fees.

     

    Borrower
shall have paid all interest, fees, costs and expenses due and payable under
this Agreement and the other Loan Documents on the Closing Date.

     

    4.1.4.                Delivery of Loan
Documents.

     

    Borrower
shall have delivered the following documents in form and substance satisfactory
to Agent (and, as applicable, duly executed by all Persons named as parties
thereto and dated the Closing Date or an earlier date satisfactory to
Agent):

     

    (a)           Agreement.  This
Agreement.

     

    (b)           Notes.  A
Note, for each Lender requesting a Note.

     

    (c)           Collateral
Documents.  The Guarantee and Collateral Agreement, all other
Collateral Documents, and all instruments, documents, certificates and
agreements executed or delivered pursuant thereto (including intellectual
property assignments and pledged equity

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    interests
in the Borrower and the Borrower’s Subsidiaries), with undated irrevocable
transfer powers executed in blank), in each case, executed and delivered by each
Loan Party and each other Person named as a party thereto.

     

    (d)           Financing
Statements.  To the extent not completed pursuant to the
Original Credit Agreement, properly completed Uniform Commercial Code financing
statements and other filings and documents required by law or the Loan Documents
to provide Agent perfected Liens (subject only to Liens permitted pursuant to
Section 7.2) in
the Collateral.

     

    (e)           Lien
Searches.  Copies of Uniform Commercial Code search reports
listing all effective financing statements filed against any Loan Party, with
copies of such financing statements.

     

    (f)           Omitted.

     

    (g)           Omitted.

     

    (h)           Omitted.

     

    (i)           Intercreditor
Agreement.  An amendment to the Intercreditor Agreement,
executed and delivered by Agent, the holder of Senior Debt and the Loan Parties,
recognizing and giving effect to this Agreement.

     

    (j)           Omitted.

     

    (k)           Fee
Letter.  The Fee Letter, executed and delivered by the Borrower
and Agent.

     

    (l)           Omitted.

     

    (m)           Authorization
Documents.  For each Loan Party, such Person’s (i) charter (or
similar formation document), certified by the appropriate Governmental
Authority, (ii) good standing certificates in its state of incorporation (or
formation) and in each other state requested by Agent, (iii) limited liability
company agreement, partnership agreement, bylaws (and similar governing
document), (iv) resolutions of its board of directors (or similar governing
body) approving and authorizing such Person’s execution, delivery and
performance of the Loan Documents to which it is party and the transactions
contemplated thereby, and (v) signature and incumbency certificates of its
officers executing any of the Loan Documents, all certified by its secretary or
an assistant secretary (or similar officer) as being in full force and effect
without modification.

     

    (n)           Opinions of
Counsel.  Opinions of counsel for each Loan Party, including
local Nevada and Arizona counsel, each in form and substance requested by
Agent.

     

    (o)           Insurance.  Certificates
or other evidence of insurance in effect as required by Section 6.3(b), with
endorsements naming Agent as lenders’ loss payee and/or additional insured, as
applicable.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    (p)           Omitted.

     

    (q)           Omitted.

     

    (r)           Consents.  Evidence
that all necessary consents, permits and approvals (governmental or otherwise)
required for the execution, delivery and performance by each Loan Party of the
Loan Documents have been duly obtained and are in full force and
effect.

     

    (s)           Omitted.

     

    (t)           Omitted.

     

    (u)           Subordination
Agreements.  The Black Forest Subordination Agreement, executed
by Agent, the Loan Parties and Black Forest.

     

    (v)           Issuance of
Shares.  Issuance to Fourth Third of the common stock of Parent
contemplated to be issued pursuant to the Share Exchange Agreement and the Share
Rights Agreement on the Closing Date in conformity with Section
4.1.9.

     

    (w)           Key Employment
Agreements.  The Key Employees and Borrower shall have executed
the Key Employment Agreements.

     

    (x)           EBOF
Release.  EBOF, together with Durant, shall have joined with
Agent in the execution of an acknowledgement, consent and release in respect
hereof.

     

    (y)           Castlerigg
Release.  Castlerigg Master Investments, Ltd., as collateral
agent, shall have released its Liens on all assets of the Loan
Parties.

     

    (z)           Other
Documents.  Such other certificates, documents and agreements
that may be listed on the closing checklist provided by Agent to the Borrower or
as Agent or any Lender may reasonably request.

     

    4.1.5.                Representations and
Warranties

     

    .  Each
representation and warranty by each Loan Party contained herein or in any other
Loan Document shall be true and correct in all material respects (without
duplication of any materiality qualifier contained therein) as of the Closing
Date.

     

    4.1.6.                No
Default

     

    .  No
Default or Event of Default shall have occurred and be continuing.

     

    4.1.7.                Diligence

     

    .  The
Agent shall have completed, to its satisfaction, its remaining due diligence,
which includes review of equipment appraisals, obtaining management background
checks, and legal diligence, with the results thereof satisfactory to the
Agent.

     

    4.1.8.                No Material Adverse
Change

     

    .  Since
the applicable Last Pre Closing Audit Date, there has been no material adverse
change in the operations, assets, business, properties, prospects or condition
(financial or otherwise) of the Borrower and its Subsidiaries taken as a whole
or the Parent and its Subsidiaries taken as a whole.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    4.1.9.                      Reservation
of Shares

     

    .  Parent
shall have authorized and reserved for issuance to Fourth Third that number of
shares of the common stock of Parent necessary for the purpose of issuance to
Fourth Third the amount thereof contemplated by the Share Exchange Agreement and
the Share Rights Agreement at and after the Closing Date (as applicable),
representing at least 1,100,000 such shares, as of the Closing
Date.  Parent shall take all such actions as may be necessary to
assure that all such shares of common stock may be issued without violation of
any applicable law or governmental regulation or any requirements of any
domestic securities exchange upon which such shares are or will be
listed.

     

    4.1.10.                      Drop Down and Share
Exchange

     

    .  The
Agent shall have received evidence satisfactory to it that:  (i) the
Drop Down and the Share Exchange have occurred on terms satisfactory to the
Agent; and (ii) all consents of all Persons, including the holder of the Senior
Debt and Black Forest, have been obtained.

     

    
      	
              Section
      5.

            	
              Representations and
      Warranties.

            

    

     

    To induce
Agent and Lenders to enter into this Agreement and to induce Lenders to make
their Pro Rata Shares of the Loan hereunder, Borrower represents and warrants to
Agent and Lenders as follows.

    

    5.1.           Organization.

     

    Borrower
is a limited liability company validly existing and in good standing under the
laws of the State of Delaware; each other Loan Party is validly existing and in
good standing under the laws of the jurisdiction of its organization; and each
Loan Party is duly qualified to do business in each jurisdiction where, because
of the nature of its activities or properties, such qualification is required,
except for such jurisdictions where the failure to so qualify could not
reasonably be expected to have a Material Adverse Effect.

     

    5.2.           Authorization; No
Conflict.

     

    Each of
Borrower and each other Loan Party is duly authorized to execute and deliver
each Loan Document to which it is a party, Borrower is duly authorized to borrow
monies hereunder, and each of Borrower and each other Loan Party is duly
authorized to perform its Obligations under each Loan Document to which it is a
party.  The execution, delivery and performance by Borrower of this
Agreement and by each of Borrower, each Loan Party of each Loan Document to
which it is a party, and the borrowings by Borrower hereunder, do not and will
not (a) require any consent or approval of any governmental agency or authority
(other than any consent or approval which has been obtained and is in full force
and effect), (b) conflict with (i) any provision of applicable law, (ii) the
charter, by-laws, limited liability company agreement, partnership agreement or
other organizational documents of any Loan Party or (iii) any agreement,
indenture, instrument or other document, or any judgment, order or decree, which
is binding upon any Loan Party or any of their respective properties or (c)
require, or result in, the creation or imposition of any Lien on any asset of
Borrower, any Loan Party (other than Liens in favor of Agent created pursuant to
the Collateral Documents).

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    5.3.           Validity;
Binding Nature.

     

    Each of
this Agreement and each other Loan Document to which Borrower or any other Loan
Party is a party is the legal, valid and binding obligation of such Person,
enforceable against such Person in accordance with its terms, subject to
bankruptcy, insolvency and similar laws affecting the enforceability of
creditors’ rights generally and to general principles of equity.

     

    5.4.           Financial
Condition.

     

    (a)           The
audited consolidated financial statements of Borrower and its Subsidiaries
(presented on a consolidated basis with the audited financial statements of
Apollo Resources International, Inc.) as at December 31, 2007, copies of each of
which have been delivered pursuant hereto, were prepared in accordance with GAAP
(subject, in the case of such unaudited statements, to the absence of footnotes
and to normal year-end adjustments) and present fairly the consolidated
financial condition of such Persons as at such dates and the results of their
operations for the periods then ended.

     

    (b)           The
consolidated financial projections (including an operating budget and a cash
flow budget) of Parent and Borrower and their respective
Subsidiaries for the 2 year period commencing June 1, 2008 delivered to Agent
and Lenders on or prior to the Closing Date (i) were prepared by Parent
and  Borrower, respectively, in good faith and (ii)
were prepared in accordance with assumptions for which Parent and Borrower,
respectively, has a
reasonable basis, and the accompanying consolidated pro forma balance sheets of
Parent and Borrower and their respective
Subsidiaries as at the Closing Date, adjusted to give effect to the consummation
of the financing contemplated hereby as if such transactions had occurred on
such date, is consistent in all material respects with such
projections.

     

    5.5.           No Material Adverse
Change.

     

    Since the
applicable Last Pre Closing Audit Date, there has been no material adverse
change in the operations, assets, business, properties, prospects or condition
(financial or otherwise) of the Borrower and its Subsidiaries taken as a whole
or of the Parent and its Subsidiaries taken as a whole.

     

    5.6.           Litigation

     

    .  No
litigation (including derivative actions), arbitration proceeding or
governmental investigation or proceeding is pending or, to Borrower’s knowledge,
threatened against any Loan Party which could reasonably be expected to have,
either individually or in the aggregate, a Material Adverse Effect, except as
set forth in Schedule
5.6.  As of the Closing Date and the Amendment No. 2 Effective
Date, other than any liability incident to such litigation or proceedings,
neither Borrower nor any other Loan Party has any material Contingent
Obligations not listed on Schedule
7.1.

     

    5.7.           Ownership of Properties;
Liens.

     

    Each of
Borrower and each other Loan Party owns good and, in the case of real property,
marketable title to all of its properties and assets, real and personal,
tangible and intangible, of any nature whatsoever (including patents,
trademarks, trade names, service marks and copyrights), free and clear of all
Liens, charges and claims (including infringement claims with

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    respect
to patents, trademarks, service marks, copyrights and the like), except as
permitted by Section
7.2.

     

    5.8.           Capitalization.

     

    All
issued and outstanding equity securities of the Loan Parties are duly authorized
and validly issued, fully paid and non-assessable, and such securities were
issued in compliance with all applicable state and federal laws concerning the
issuance of securities.  All issued and outstanding equity securities
of the Loan Party Subsidiaries are free and clear of all Liens other than those
in favor of Agent.  Schedule 5.8 sets
forth the authorized equity securities of each Loan Party as of the Closing
Date.  All of the issued and outstanding equity of Borrower is owned
by Parent, and all of the issued and outstanding equity of each of the
Borrower’s Subsidiaries is, directly or indirectly, owned by
Borrower.  As of the Closing Date, except as set forth on Schedule 5.8, there
are no pre-emptive or other outstanding rights, options, warrants, conversion
rights or other similar agreements or understandings for the purchase or
acquisition of any equity interests of any Loan Party.

     

    5.9.           Pension
Plans.

     

    During
the twelve-consecutive-month period prior to the Closing Date or the making of
the Loan, (i) no steps have been taken to terminate any Pension Plan and (ii) no
contribution failure has occurred with respect to any Pension Plan sufficient to
give rise to a Lien under Section 302(f) of ERISA.  No condition
exists or event or transaction has occurred with respect to any Pension Plan
which could result in the incurrence by Borrower or any other Loan Party of any
material liability, fine or penalty.  All contributions (if any) have
been made to any Multiemployer Pension Plan that are required to be made by any
Loan Party or any other member of the Controlled Group under the terms of the
plan or of any collective bargaining agreement or by applicable law; neither any
Loan Party nor any member of the Controlled Group has withdrawn or partially
withdrawn from any Multiemployer Pension Plan, incurred any withdrawal liability
with respect to any such plan or received notice of any claim or demand for
withdrawal liability or partial withdrawal liability from any such plan, and no
condition has occurred which, if continued, could result in a withdrawal or
partial withdrawal from any such plan, and neither any Loan Party nor any member
of the Controlled Group has received any notice that any Multiemployer Pension
Plan is in reorganization, that increased contributions may be required to avoid
a reduction in plan benefits or the imposition of any excise tax, that any such
plan is or has been funded at a rate less than that required under Section 412
of the IRC, that any such plan is or may be terminated, or that any such plan is
or may become insolvent.

     

    5.10.                      Compliance with Law;
Investment Company Act; Other Regulated Entities.

     

    Borrower
and each other Loan Party possesses all necessary authorizations, permits,
licenses and approvals from all Governmental Authorities in order to conduct
their respective businesses as presently conducted.  All business and
operations of the Borrower and each other Loan Party complies with all
applicable federal, state and local laws and regulations, except where the
failure so to comply could not reasonably be expected to result in a Material
Adverse Effect.  Neither the Borrower nor any other Loan Party is
operating any aspect of its business

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    under any
agreement, settlement, order or other arrangement with any Governmental
Authority. Neither Borrower nor any other Loan Party is an “investment company”
or a company “controlled” by an “investment company” or a “subsidiary” of an
“investment company”, within the meaning of the Investment Company Act of
1940.  None of any Loan Party, any Person controlling any Loan Party,
or any Subsidiary of any Loan Party, is subject to regulation under the Federal
Power Act, the Interstate Commerce Act, any state public utilities code, or any
other Federal or state statute, rule or regulation limiting its ability to incur
Indebtedness, pledge its assets or perform its Obligations under the Loan
Documents.

     

    5.11.                      Margin
Stock.

     

    Neither
Borrower nor any Loan Party is engaged principally, or as one of its important
activities, in the business of extending credit for the purpose of purchasing or
carrying Margin Stock.  No portion of the Obligations is secured
directly or indirectly by Margin Stock.

     

    5.12.                      Taxes.

     

    Each of
Borrower and each other Loan Party and each Non-Loan Party has filed all
federal, state, local and foreign income and franchise and other material tax
returns, reports and statements (collectively, the “Tax Returns”) with
the appropriate governmental authorities in all jurisdictions in which such Tax
Returns are or were required to be filed. All such Tax Returns are true and
correct in all material respects. All Taxes, charges and other impositions
reflected therein or otherwise due and payable have been paid prior to the date
on which any liability may be added thereto for non-payment thereof, except for
those contested in good faith by appropriate proceedings diligently conducted
and for which adequate reserves are maintained on the books of the appropriate
Loan Party or Non-Loan Party, as applicable, in accordance with
GAAP.   Except as specifically disclosed in Schedule 5.12, no Tax
Return is under audit or examination by any Governmental Authority and no notice
of such an audit or examination or any assertion of any claim for Taxes has been
given or made by any Governmental Authority.  Proper and accurate
amounts have been withheld by each Loan Party or Non-Loan Party, as applicable,
from their respective employees for all periods in full and complete compliance
with the tax, social security and unemployment withholding provisions of
applicable requirements of law and such withholdings have been timely paid to
the respective governmental authorities.   No Loan Party or
Non-Loan Party has participated in a “reportable transaction” within the meaning
of Treasury Regulation Section 1.6011-4(b) or has been a member of an
affiliated, combined or unitary group other than the group of which a Loan Party
is the common parent.

     

    5.13.                      Solvency.

     

    On the
Closing Date, with respect to each of Borrower and each other Loan Party,
individually, (a) the fair value of its assets is greater than the amount of its
liabilities (including disputed, contingent and unliquidated liabilities) as
such value is established and liabilities evaluated, (b) the present fair
saleable value of its assets is not less than the amount that will be required
to pay the probable liability on its debts as they become absolute and matured,
(c) it is able to realize upon its assets and pay its debts and other
liabilities (including disputed, contingent and unliquidated liabilities) as
they mature in the normal course of business, (d) it does not intend to, and
does not believe that it will, incur debts or liabilities beyond its ability
to

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    pay as
such debts and liabilities mature and (e) it is not engaged in business or a
transaction, and is not about to engage in business or a transaction, for which
its property would constitute unreasonably small capital.

     

    5.14.                      Environmental
Matters.

     

    The
on-going operations of Borrower and each other Loan Party comply in all respects
with all Environmental Laws, except such non-compliance which could not (if
enforced in accordance with applicable law) reasonably be expected to result in
a Material Adverse Effect.  Borrower and each other Loan Party have
obtained, and maintained in good standing, all licenses, permits, authorizations
and registrations required under any Environmental Law and necessary for their
respective ordinary course operations, and Borrower and each other Loan Party
are in compliance with all material terms and conditions thereof, except where
the failure to do so could not reasonably be expected to result in material
liability to Borrower or any other Loan Party and could not reasonably be
expected to result in a Material Adverse Effect.  Except as set forth
on Schedule
5.14, none of Borrower, any other Loan Party or any of their respective
properties or operations is subject to any outstanding written order from or
agreement with any Federal, state or local Governmental Authority, nor subject
to any judicial or docketed administrative proceeding, nor subject to any
indemnification agreement or other contractual obligation, respecting any
Environmental Law, Environmental Claim or Hazardous Substance.  There
are no Hazardous Substances or other conditions or circumstances existing with
respect to any property, or arising from operations prior to the Closing Date
and the Amendment No. 2 Effective Date, of Borrower or any other Loan Party that
could reasonably be expected to result in a Material Adverse
Effect.  Neither Borrower nor any other Loan Party has any underground
or above ground storage tanks that are not properly registered or permitted
under applicable Environmental Laws or that are leaking or disposing of
Hazardous Substances.

     

    5.15.                      Insurance.

     

    Borrower
and each other Loan Party and their respective properties are insured with
financially sound and reputable insurance companies which are not Affiliates of
Borrower, in such amounts, with such deductibles and covering such risks as are
customarily carried by companies engaged in similar businesses and owning
similar properties in localities where Borrower or such other Loan Party
operates.  A true and complete listing of such insurance as of the
Closing Date, including issuers, coverages and deductibles, is set forth on
Schedule
5.15.

     

    5.16.                      Information.

     

    All
information heretofore or contemporaneously herewith furnished in writing by
Borrower or any other Loan Party to Agent or any Lender for purposes of or in
connection with this Agreement and the transactions contemplated hereby is, and
all written information hereafter furnished by or on behalf of Borrower or any
Loan Party to Agent or any Lender pursuant hereto or in connection herewith will
be, true and accurate in every material respect on the date as of which such
information is dated or certified, and none of such information is or will be
incomplete by omitting to state any material fact necessary to make such
information not misleading in light of the circumstances under which made (it
being recognized by Agent and Lenders that any projections and forecasts
provided by Borrower are based on good faith

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    estimates
and assumptions believed by Borrower to be reasonable as of the date of the
applicable projections or assumptions and that actual results during the period
or periods covered by any such projections and forecasts may differ from
projected or forecasted results).

     

    5.17.                      Intellectual
Property.

     

    Borrower
and each other Loan Party owns and possesses or has a license or other right to
use all patents, patent rights, trademarks, trademark rights, trade names, trade
name rights, service marks, service mark rights and copyrights as are necessary
for the conduct of the business of Borrower and the other Loan Parties, without
any infringement upon rights of others which could reasonably be expected to
have a Material Adverse Effect.

     

    5.18.                      Labor
Matters.

     

    Except as
set forth on Schedule
5.18, neither Borrower nor any other Loan Party is subject to any labor
or collective bargaining agreement.  There are no existing or
threatened strikes, lockouts or other labor disputes involving Borrower or any
other Loan Party that singly or in the aggregate could reasonably be expected to
have a Material Adverse Effect.  Hours worked by and payment made to
employees of Borrower and the other Loan Parties are not in violation of the
Fair Labor Standards Act or any other applicable law, rule or regulation dealing
with such matters.

     

    5.19.                      No
Default.

     

    No Event
of Default or Default exists or would result from the incurrence by any Loan
Party of any Debt hereunder or under any other Loan Document.

     

    5.20.                      Foreign Assets Control
Regulations and Anti-Money Laundering.

     

    5.20.1.                      OFAC.

     

    Neither
any Loan Party nor any Subsidiary of any Loan Party (i) is a person whose
property or interest in property is blocked or subject to blocking pursuant to
Section 1 of Executive Order 13224 of September 23, 2001 Blocking Property and
Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support
Terrorism (66 Fed. Reg. 49079 (2001) (“Executive Order
13224”), (ii) engages in any dealings or transactions prohibited by
Section 2 of such executive order, or is otherwise associated with any such
person in any manner violative of Section 2, or (iii) is a person on the list of
Specially Designated Nationals and Blocked Persons or subject to the limitations
or prohibitions under any other U.S. Department of Treasury’s Office of Foreign
Assets Control regulation or executive order.

     

    5.20.2.                      Patriot
Act.

     

    Each Loan
Party and each of their respective Subsidiaries is in compliance, in all
material respects, with the Patriot Act.  No part of the proceeds of
the Loan will be used, directly or indirectly, for any payments to any
governmental official or employee, political party, official of a political
party, candidate for political office, or anyone else acting in an official
capacity, in

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    order to
obtain, retain or direct business or obtain any improper advantage, in violation
of the United States Foreign Corrupt Practices Act of 1977, as
amended.

     

    5.21.                      Gas Supply and Hedge
Contracts.

     

    Each of
the Gas Supply and Hedge Contracts is in full force and effect and constitutes
the legal, valid, binding and enforceable obligation of each party
thereto.

    

    
      	
              Section
      6.

            	
              Affirmative
      Covenants.

            

    

     

    Until all
Obligations (other than contingent indemnification obligations to the extent no
claim giving rise thereto has been asserted) are Paid in Full, each Loan Party
agrees that, unless at any time Required Lenders shall otherwise expressly
consent in writing, it will:

     

    6.1.           Information.

     

    Furnish
to Agent and each Lender:

     

    6.1.1.                Annual
Report.

     

    Promptly
when available and in any event within 90 days after the close of each Fiscal
Year:  a copy of the annual audit report of Parent and its Subsidiaries for
such Fiscal Year, including therein a consolidated balance sheet and statement
of earnings and cash flows of Borrower and the Subsidiaries as at the end of
such Fiscal Year, certified without qualification by independent auditors of
recognized standing selected by Borrower and reasonably acceptable to
Agent.

     

    6.1.2.                Interim
Reports.

     

    Promptly
when available and in any event within 30 days after the end of each month,
consolidated balance sheets of Parent and Borrower and their respective
Subsidiaries as of the end of such month, together with consolidated statements
of earnings and a consolidated statement of cash flows for such month and for
the period beginning with the first day of such Fiscal Year and ending on the
last day of such month, together with a comparison with the corresponding period
of the previous Fiscal Year and a comparison with the budget for such period of
the current Fiscal Year, certified by the chief financial officers of Parent and
Borrower.

     

    6.1.3.                Compliance
Certificate.

     

    Contemporaneously
with the furnishing of a copy of each annual audit report pursuant to Section 6.1.1 and
each set of statements pursuant to Section 6.1.2 for the
last month of each calendar quarter (beginning with the calendar quarter ending
June 30, 2008) a duly completed Compliance Certificate, with appropriate
insertions, dated the date of such annual report or such monthly statements, and
signed by the chief financial officer of Borrower, containing a computation of
each of the financial ratios and restrictions set forth in Section 7.14 and to
the effect that such officer has not become aware of any Event of Default or
Default that has occurred and is continuing or, if there is any such event,
describing it and the steps, if any, being taken to cure it.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    6.1.4.                      Reports
to SEC and Shareholders.

     

    Promptly
upon the filing or sending thereof, copies of (a) all regular, periodic or
special reports of each Loan Party filed with the Securities Exchange
Commission, (b) all registration statements of each Loan Party filed with the
Securities Exchange Commission (other than on Form S-8) and (c) all proxy
statements or other communications made to security holders
generally.

     

    6.1.5.                Notice of Default;
Litigation; ERISA Matters.

     

    Promptly
upon becoming aware of any of the following, written notice describing the same
and the steps being taken by Borrower or the applicable Loan Party affected
thereby with respect thereto:

     

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

     

    (b)           any
litigation, arbitration or governmental investigation or proceeding not
previously disclosed by Borrower to Lenders which has been instituted or, to the
knowledge of Borrower, is threatened against Borrower or any other Loan Party or
to which any of the properties of any thereof is subject which could reasonably
be expected to have a Material Adverse Effect;

     

    (c)           the
institution of any steps by any member of the Controlled Group or any other
Person to terminate any Pension Plan, or the failure of any member of the
Controlled Group to make a required contribution to any Pension Plan (if such
failure is sufficient to give rise to a Lien under Section 302(f) of ERISA) or
to any Multiemployer Pension Plan, or the taking of any action with respect to a
Pension Plan which could result in the requirement that Borrower or any other
Loan Party furnish a bond or other security to the PBGC or such Pension Plan, or
the occurrence of any event with respect to any Pension Plan or Multiemployer
Pension Plan which could result in the incurrence by any member of the
Controlled Group of any material liability, fine or penalty (including any claim
or demand for withdrawal liability or partial withdrawal from any Multiemployer
Pension Plan), or any material increase in the contingent liability of Borrower
or any other Loan Party with respect to any post-retirement welfare plan
benefit, or any notice that any Multiemployer Pension Plan is in reorganization,
that increased contributions may be required to avoid a reduction in plan
benefits or the imposition of an excise tax, that any such plan is or has been
funded at a rate less than that required under Section 412 of the IRC, that any
such plan is or may be terminated, or that any such plan is or may become
insolvent;

     

    (d)           any
cancellation or material adverse change in any insurance maintained by Borrower
or any other Loan Party; or

     

    (e)           any
other event (including (i) any violation of any Environmental Law or the
assertion of any Environmental Claim or (ii) the enactment or effectiveness of
any law, rule or regulation) which could reasonably be expected to have a
Material Adverse Effect.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    6.1.6.                      Management
Report.

     

    Promptly
upon receipt thereof, copies of all detailed financial and management reports
submitted to Borrower or any other Loan Party by independent auditors in
connection with each annual or interim audit made by such auditors of the books
of Borrower or any other Loan Party.

     

    6.1.7.                Projections.

     

    As soon
as practicable, and in any event not later than 30 days after the commencement
of each Fiscal Year, financial projections for Parent and Borrower and their
respective Subsidiaries for such Fiscal Year (including monthly operating and
cash flow budgets) prepared in a manner consistent with the projections
delivered by Parent and Borrower, respectively, to Agent prior to the Closing
Date or otherwise in a manner reasonably satisfactory to Agent, accompanied by a
certificate of a chief financial officers of  Parent and Borrower to the effect that (a)
such projections were prepared by Parent and Borrower, respectively, in good faith, (b)
Parent and Borrower, respectively, has a reasonable basis for the assumptions
contained in such projections and (c) such projections have been prepared in
accordance with such assumptions.

     

    6.1.8.                Other
Information.

     

    Promptly
from time to time, such other information concerning Borrower and any other Loan
Party as any Lender or Agent may reasonably request.

     

    6.2.           Books; Records;
Inspections.

     

    Keep, and
cause each other Loan Party to keep, its books and records in accordance with
sound business practices sufficient to allow the preparation of financial
statements in accordance with GAAP; permit, and cause each other Loan Party to
permit, Agent (accompanied by any Lender) or any representative thereof to
inspect the properties and operations of Borrower or such other Loan Party; and
permit, and cause each other Loan Party to permit, at any reasonable time and
with reasonable notice (or at any time without notice if an Event of Default
exists), Agent (accompanied by any Lender) or any representative thereof to
visit any or all of its offices, to discuss its financial matters with its
officers and its independent auditors (and Borrower hereby authorizes such
independent auditors to discuss such financial matters with any Lender or Agent
or any representative thereof), and to examine (and, at the expense of Borrower
or the applicable Loan Party, photocopy extracts from) any of its books or other
records; and permit, and cause each other Loan Party to permit, Agent and its
representatives to inspect the Collateral and other tangible assets of Borrower
or such Loan Party, to perform appraisals of the equipment of Borrower or such
Party, and to inspect, audit, check and make copies of and extracts from the
books, records, computer data, computer programs, journals, orders, receipts,
correspondence and other data relating to any Collateral.

     

    6.3.           Maintenance of Property;
Insurance.

     

    (a)           Keep,
and cause each other Loan Party to keep, all property useful and necessary in
the business of Borrower or such other Loan Party in good working order and
condition, ordinary wear and tear excepted.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    (b)           Maintain,
and cause each other Loan Party to maintain, with responsible insurance
companies, such insurance coverage as shall be required by all laws,
governmental regulations and court decrees and orders applicable to it and such
other insurance, to such extent and against such hazards and liabilities, as is
customarily maintained by companies similarly situated; provided that in any
event, such insurance shall insure against all risks and liabilities of the type
insured against as of the Closing Date and shall have insured amounts no less
than, and deductibles no higher than, those amounts provided for as of the
Closing Date.  Upon request of Agent or any Lender, Borrower shall
furnish to Agent or such Lender a certificate setting forth in reasonable detail
the nature and extent of all insurance maintained by Borrower and each other
Loan Party.  Borrower shall cause each issuer of an insurance policy
to provide Agent with an endorsement (i) showing Agent as a loss payee with
respect to each policy of property or casualty insurance and naming Agent as an
additional insured with respect to each policy of liability insurance, (ii)
providing that 30 days’ notice will be given to Agent prior to any cancellation
of, or reduction or change in coverage provided by or other material
modification to such policy and (iii) reasonably acceptable in all other
respects to Agent.  Borrower shall execute and deliver to Agent a
collateral assignment, in form and substance satisfactory to Agent, of each
business interruption insurance policy maintained by the Loan
Parties.

     

    (c)           Unless
Borrower provides Agent with evidence of the continuing insurance coverage
required by this Agreement, Agent may purchase insurance at Borrower’s expense
to protect Agent’s and Lenders’ interests in the Collateral.  This
insurance may, but need not, protect Borrower’s and each other Loan Party’s
interests.  The coverage that Agent purchases may, but need not, pay
any claim that is made against Borrower or any other Loan Party in connection
with the Collateral.  Borrower may later cancel any insurance
purchased by Agent, but only after providing Agent with evidence that Borrower
has obtained the insurance coverage required by this Agreement.  If
Agent purchases insurance for the Collateral, as set forth above, Borrower will
be responsible for the costs of that insurance, including interest and any other
charges that may be imposed with the placement of the insurance, until the
effective date of the cancellation or expiration of the insurance and the costs
of the insurance may be added to the principal amount of the Loan owing
hereunder.

     

    6.4.           Compliance with Laws;
Payment of Taxes and Liabilities.

     

    (a)           Comply,
and cause each other Loan Party to comply, in all material respects with all
applicable laws, rules, regulations, decrees, orders, judgments, licenses and
permits, except where failure to comply could not reasonably be expected to have
a Material Adverse Effect; (b) without limiting clause (a) above, ensure, and
cause each other Loan Party to ensure, that no person who owns a controlling
interest in or otherwise controls a Loan Party is or shall be (i) listed on the
Specially Designated Nationals and Blocked Person List maintained by the Office
of Foreign Assets Control (“OFAC”), Department of
the Treasury, and/or any other similar lists maintained by OFAC pursuant to any
authorizing statute, Executive Order or regulation or (ii) a person designated
under Section
1(b), (c) or (d) or Executive
Order 13224, any related enabling legislation or any other similar Executive
Orders; (c) without limiting clause (a) above, comply and cause each other Loan
Party to comply, with all applicable Bank Secrecy Act and anti-money laundering
laws and regulations and (d) timely prepare and file all Tax Returns required to
be filed by applicable law and pay, and cause each other Loan Party to pay,
prior to delinquency, all taxes and other governmental charges against it or any
of its property, as

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    well as
claims of any kind which, if unpaid, could become a Lien on any of its property;
provided that the foregoing shall not require Borrower or any other Loan Party
to pay any such tax or charge so long as it shall contest the validity thereof
in good faith by appropriate proceedings and shall set aside on its books
adequate reserves with respect thereto in accordance with GAAP.

     

    6.5.           Maintenance of
Existence.

     

    Maintain
and preserve, and (subject to Section 7.5) cause
each other Loan Party to maintain and preserve, (a) its existence and good
standing in the jurisdiction of its organization and (b) its qualification to do
business and good standing in each jurisdiction where the nature of its business
makes such qualification necessary, other than any such jurisdiction where the
failure to be qualified or in good standing could not reasonably be expected to
have a Material Adverse Effect.

     

    6.6.           Employee Benefit
Plans.

     

    Maintain,
and cause each other Loan Party to maintain, each Pension Plan in substantial
compliance with all applicable requirements of law and regulations.

     

    6.7.           Environmental
Matters.

     

    If any
release or disposal of Hazardous Substances shall occur or shall have occurred
on or from any real property or any other assets of Borrower or any other Loan
Party, cause, or direct the applicable Loan Party to cause, the prompt
containment and removal of such Hazardous Substances and the remediation of such
real property or other assets as is necessary to comply with all Environmental
Laws and to preserve the value of such real property or other
assets.  Without limiting the generality of the foregoing, Borrower
shall, and shall cause each other Loan Party to, comply with each valid Federal
or state judicial or administrative order requiring the performance at any real
property by Borrower or any other Loan Party of activities in response to the
release or threatened release of a Hazardous Substance.  If any
violation of any Environmental Law shall occur or shall have occurred at any
real property or any other assets of Borrower or any other Loan Party or
otherwise in connection with their operations, cause, or direct the applicable
Loan Party to cause, the prompt correction of such violation.

     

    6.8.           Further
Assurances.

     

    (a)           Promptly
upon request by the Agent, the Loan Parties shall (and, subject to the
limitations hereinafter set forth, shall cause each of their Subsidiaries to)
take such additional actions as the Agent may reasonably require from time to
time in order (i) to carry out more effectively the purposes of this Agreement
or any other Loan Document, (ii) to subject to the Liens created by any of the
Collateral Documents any of the properties, rights or interests covered by any
of the Collateral Documents, (iii) to perfect and maintain the validity,
effectiveness and priority of any of the Collateral Documents and the Liens
intended to be created thereby, and (iv) to better assure, convey, grant,
assign, transfer, preserve, protect and confirm to the Agent and Lenders the
rights granted or now or hereafter intended to be granted to the Agent and the
Lenders under any Loan Document or under any other document executed in
connection therewith.  Without limiting the generality of the
foregoing and except as otherwise

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    approved
in writing by Required Lenders, the Loan Parties shall cause each of their
Domestic Loan Party Subsidiaries to guaranty the Obligations and cause each such
Subsidiary to grant to the Agent, for the benefit of the Agent and Lenders, a
security interest in, subject to the limitations hereinafter set forth, all of
such Subsidiary’s Property to secure such guaranty.  Furthermore and
except as otherwise approved in writing by Required Lenders, Parent shall pledge
the Stock and Stock Equivalents of Borrower, and each Loan Party Subsidiary
shall, and shall cause (x) each of its Domestic Loan Party Subsidiaries to,
pledge all of the Stock and Stock Equivalents of each of its Domestic Loan Party
Subsidiaries and sixty-five percent (65%) of the outstanding voting Stock and
Stock Equivalents and one hundred percent (100%) of the outstanding non-voting
Stock and Stock Equivalents) of Foreign Subsidiaries owned directly by a Loan
Party Subsidiary, in each instance, to the Agent, for the benefit of the Agent
and Lenders, to secure the Obligations.  In connection with each
pledge of Stock and Stock Equivalents, such Loan Party Subsidiary shall deliver,
or cause to be delivered, to the Agent, irrevocable proxies and stock powers
and/or assignments, as applicable, duly executed in blank.  In the
event any Loan Party (other than Parent) acquires or leases as lessee any real
Property, simultaneously with such acquisition, such Person shall execute and/or
deliver, or cause to be executed and/or delivered, to the Agent, (x) a fully
executed Mortgage, in form and substance reasonably satisfactory to the Agent
together with in the case of a lease, such lease amendments, consents and/or
estoppels as Agent may reasonably request, and in any event, together with an
A.L.T.A. lender’s title insurance policy issued by a title insurer reasonably
satisfactory to the Agent, in form and substance and in an amount reasonably
satisfactory to the Agent insuring that the Mortgage is a valid and enforceable
first priority Lien on the respective property, free and clear of all defects,
encumbrances and Liens, (y) then current A.L.T.A. surveys, certified to the
Agent and the Lenders by a licensed surveyor sufficient to allow the issuer of
the lender’s title insurance policy to issue such policy without a survey
exception and (z) an environmental site assessment prepared by a qualified firm
reasonably acceptable to the Agent, in form and substance satisfactory to the
Agent.

     

    (b)           Within
thirty (30) days after the Closing Date, to the extent not heretofore delivered
to Agent pursuant to the Original Credit Agreement, the Loan Parties shall
deliver to Agent a deposit account or securities account, as applicable, Control
Agreement for each deposit account and securities account maintained by any Loan
Party Subsidiary (other than zero balance payroll and similar accounts and other
than the “Lock-Box Account” (as such term is defined in the Intercreditor
Agreement)), in form and substance satisfactory to the Agent.

     

    (c)           Within
thirty (30) days following the Closing Date, the Borrower shall execute and
deliver an amendment to the Mortgage, dated as of February 28, 2007 (as
heretofore amended), by Borrower to Agent, in form and substance satisfactory to
Agent, to the extent necessary in the opinion of Agent to insure that the Loan
is secured by such Mortgage and to obtain at Borrower’s expense, an endorsement,
in form and substance satisfactory to Agent, to the title insurance policy
issued to Agent as to such Mortgage, which among other things insures that such
Mortgage secures such Loan.

     

    (d)           Within
thirty (30) days after the Closing Date, to the extent not heretofore delivered
to Agent pursuant to the Original Credit Agreement, at their own cost and
expense, the Loan Parties shall cause applications to be filed with the
appropriate motor vehicle authorities to

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    cause all
certificates of title for Titled Vehicles owned as of the Closing Date by any
Loan Party Subsidiary to indicate the name of the Agent as sole
lienholder.

     

    6.9.           Collateral Access
Agreements.

     

    To the
extent not heretofore completed pursuant to the Original Credit Agreement, each
Loan Party Subsidiary shall use commercially reasonable efforts to obtain a
Collateral Access Agreement from the lessor of each leased property, bailee in
possession of any Collateral or mortgage of any owned property with respect to
each location where any Collateral is stored or located, which Collateral Access
Agreement shall be reasonably satisfactory in form and substance to
Agent.

     

    6.10.                      Board Observation
Rights.

     

    Fourth
Third shall have the right to appoint a single observer to the board of
directors or similar governing body of each Loan Party (the “Board of Directors”),
who shall be entitled to attend (or at the option of such observer, monitor by
telephone) all meetings of such Board of Directors and each committee of such
Board of Directors, but shall not be entitled to vote, or to influence any vote,
and who shall receive all reports, meeting materials, notices, written consents,
and other materials as and when provided to the members of such Board of
Directors.  The Loan Parties shall reimburse Fourth Third for the
reasonable travel expenses incurred by any such observer appointed by Fourth
Third in connection with attendance at or participation in meetings of such Loan
Party’s Board of Directors to the extent consistent with such Loan Party’s
policies of reimbursing directors generally for such expenses.

     

    
      	
              Section
      7.

            	
              Negative
      Covenants.

            

    

     

    Until the
Obligations (other than contingent indemnification obligations to the extent no
claim giving rise thereto has been asserted) are Paid in Full, each Domestic
Loan Party Subsidiary agrees that, unless at any time Required Lenders shall
otherwise expressly consent in writing, it will:

     

    7.1.           Debt.

     

    Not, and
not suffer or permit any other Loan Party Subsidiary to, create, incur, assume
or suffer to exist any Debt, except:

     

    (a)           Obligations
under this Agreement and the other Loan Documents;

     

    (b)           Debt
secured by Liens permitted by Section 7.2(d), and
extensions, renewals and refinancings thereof; provided that the aggregate
principal amount of all such Debt at any time outstanding shall not exceed
$1,000,000;

     

    (c)           Debt
of Borrower to any Wholly-Owned Domestic Subsidiary of Borrower or Debt of any
Wholly-Owned Domestic Subsidiary of Borrower to Borrower or another Wholly-Owned
Domestic Subsidiary of Borrower; provided that all such Debt shall be evidenced
by a demand note in form and substance reasonably satisfactory to Agent and
pledged and (subject to any contrary provision of the Intercreditor Agreement)
delivered to Agent

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    pursuant
to the Guarantee and Collateral Agreement as additional collateral security for
the Obligations, and the obligations under such demand note shall be
subordinated to the Obligations hereunder in a manner reasonably satisfactory to
Agent;

     

    (d)           Debt
described on Schedule
7.1 as of the Closing Date, and any extension, renewal or refinancing
thereof so long as the principal amount thereof is not increased;

     

    (e)           Senior
Debt of Borrower and its Subsidiaries in an aggregate principal amount not
exceeding that permitted by the Intercreditor Agreement.

     

    (f)           Contingent
Obligations arising with respect to customary indemnification obligations in
favor of purchasers in connection with dispositions permitted under Section
7.5;

     

    (g)           Debt
arising from the honoring by a bank or other financial institution of a check,
draft or similar instrument drawn against insufficient funds in the ordinary
course of business, provided that such Debt is extinguished within two (2)
Business Days of notice to Borrower or the relevant Subsidiary of its
incurrence;

     

    (h)           Debt
incurred in connection with the financing of insurance premiums in the ordinary
course of business;

     

    (i)           guaranties
by Borrower of the Debt of any Wholly-Owned Domestic Subsidiary of Borrower or
guaranties by any Subsidiary thereof of the Debt of Borrower in each case so
long as such Debt is permitted under this Section
7.1;

     

    (j)           Omitted;

     

    (k)           the
Black Forest Debt, inclusive of the Contingent Obligations arising under the
Black Forest Guaranty; and

     

    (l)           other
unsecured Debt, in addition to the Debt listed above, in an aggregate principal
outstanding amount not at any time exceeding $2,000,000.

     

    7.2.           Liens.

     

    Not, and
not suffer or permit any other Loan Party Subsidiary to, create or permit to
exist any Lien on any of its real or personal properties, assets or rights of
whatsoever nature (whether now owned or hereafter acquired),
except:

     

    (a)           Liens
for taxes or other governmental charges not at the time delinquent or thereafter
payable without penalty or being diligently contested in good faith by
appropriate proceedings and, in each case, for which it maintains adequate
reserves in accordance with GAAP and the execution or other enforcement of which
is effectively stayed;

     

    (b)           Liens
arising in the ordinary course of business (such as (i) Liens of carriers,
warehousemen, mechanics, landlords and materialmen and other similar Liens
imposed by law and (ii) Liens consisting of pledges or deposits incurred in
connection with worker’s compensation, unemployment compensation and other types
of social security (excluding Liens

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    arising
under ERISA) or in connection with surety bonds, bids, performance bonds and
similar obligations) for sums not overdue or being diligently contested in good
faith by appropriate proceedings and not involving any deposits or advances or
borrowed money or the deferred purchase price of property or services and, in
each case, for which it maintains adequate reserves in accordance with GAAP and
the execution or other enforcement of which is effectively stayed;

     

    (c)           Liens
described on Schedule
7.2 as of the Closing Date;

     

    (d)           subject
to the limitation set forth in Section 7.1(c), (i)
Liens arising in connection with Capital Leases (and attaching only to the
property being leased), (ii) Liens existing on property at the time of the
acquisition thereof by Borrower or any Subsidiary (and not created in
contemplation of such acquisition) and (iii) Liens that constitute purchase
money security interests on any property securing debt incurred for the purpose
of financing all or any part of the cost of acquiring such property, provided
that any such Lien attaches to such property within 60 days of the acquisition
thereof and attaches solely to the property so acquired;

     

    (e)           attachments,
appeal bonds, judgments and other similar Liens, for sums not exceeding $250,000
arising in connection with court proceedings; provided that the execution or
other enforcement of such Liens is effectively stayed and the claims secured
thereby are being actively contested in good faith and by appropriate
proceedings;

     

    (f)           easements,
encroachments, rights of way, leases, subleases, restrictions, minor defects or
irregularities in title and other similar Liens not interfering in any material
respect with the ordinary conduct of the business of Borrower or any
Subsidiary;

     

    (g)           any
interest or title of a lessor, sublessor under any lease (other than a Capital
Lease) permitted by this Agreement;

     

    (h)           Liens
arising from precautionary uniform commercial code financing statements filed
under any lease (other than a Capital Lease) permitted by this
Agreement;

     

    (i)           Liens
arising under the Loan Documents;

     

    (j)           Liens
on property of Borrower and its Subsidiaries securing the Senior Debt and
subject to the terms of the Intercreditor Agreement;

     

    (k)           Omitted;

     

    (l)           Omitted;

     

    (m)           the
Black Forest Security, subject to the terms of the Black Forest Subordination
Agreement; and

     

    (n)           the
replacement, extension or renewal of any Lien permitted by clause (c) above upon
or in the same property subject thereto arising out of the extension, renewal or
replacement of the Debt secured thereby (without increase in the amount
thereof).

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    7.3.           Subsidiaries.

     

    Not, and
not suffer or permit any other Loan Party Subsidiary to establish or acquire any
Subsidiary.

     

    7.4.           Restricted
Payments.

     

    Not, and
not suffer or permit any other Loan Party Subsidiary to, (a) make any dividend
or other distribution to any of its equity holders, (b) purchase or redeem any
of its equity interests or any warrants, options or other rights in respect
thereof, (c) pay any management or consulting fees or similar fees to any of its
equity holders or any Affiliate thereof, (d) make any redemption, prepayment
(whether mandatory or optional), defeasance, repurchase or any other payment in
respect of any Debt that is subordinated to the Obligations, or (e) set aside
funds for any of the foregoing.  Notwithstanding the foregoing, (i)
any Subsidiary of the Borrower may pay dividends or make other distributions to
Borrower or to a Wholly-Owned Domestic Subsidiary of Borrower; (ii) any Loan
Party may make distributions to Parent that are used by Parent to pay federal,
state and local income taxes then due and owing in respect of income from such
Loan Party or any Subsidiary of such Loan Party, franchise taxes and other
similar licensing expenses incurred in the ordinary course of business; provided that each
Loan Party’s aggregate contribution to taxes as a result of the filing of a
consolidated or combined return by Parent shall not be greater, nor the
aggregate receipt of tax benefits less, than they would have been had such Loan
Party not filed a consolidated or combined return with Parent, in each case, so
long as no Default or Event of Default is continuing or would arise as a
consequence thereof and (iii) Earth Leasing, Inc. may continue to pay
semi-annual dividends with respect to shares of its Series A Preferred Stock
(non-voting) that are outstanding on the date hereof and at a rate of not more
than $0.021852 per share; provided, that no
Event of Default is continuing or would occur as a result thereof.

     

    7.5.           Mergers; Consolidations;
Asset Sales.

     

    (a)           Not,
and not suffer or permit any other Loan Party Subsidiary to, be a party to any
merger or consolidation, except for any such merger or consolidation of any
Subsidiary of Borrower into Borrower (so long as the Borrower survives such
merger) or any Wholly-Owned Domestic Subsidiary of Borrower, as applicable (so
long such Wholly-Owned Domestic Subsidiary survives such merger).

     

    (b)           Not,
and not suffer or permit any other Loan Party Subsidiary to, sell, transfer,
dispose of, convey or lease any of its assets or equity interests, or sell or
assign with or without recourse any receivables, except for (i) sales of
inventory or used, worn-out or surplus equipment, all in the ordinary course of
business, and (ii) sales and dispositions of assets (excluding any equity
interests of Borrower or any Subsidiary of Borrower) for at least fair market
value (as determined by the Board of Directors of Borrower) so long as at least
75% of the purchase price therefor is in cash and the net book value of all
assets sold or otherwise disposed of in any Fiscal Year does not exceed
$500,000.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    7.6.           Modification
of Organizational Documents.

     

    Not, and
not suffer or permit the charter, limited liability agreement, partnership
agreement, by-laws or other organizational documents of, Parent, Borrower or any
other Loan Party to be amended or modified in any way which could reasonably be
expected to materially adversely affect the interests of Agent or any
Lender.

     

    7.7.           Use of
Proceeds.

     

    Use the
proceeds of the Loan solely to refinance the Existing Loan, to finance its
Capital Expenditures, to finance its working capital needs, to finance
investments in Subsidiaries of Parent that are permitted by Section 7.11 and to
pay any financing fees and expenses associated herewith, including those
described in the Fee Letter; and not use or permit any proceeds of the Loan to
be used, either directly or indirectly, for the purpose, whether immediate,
incidental or ultimate, of “purchasing or carrying” any Margin
Stock.

     

    7.8.           Transactions with Affiliates
and Former Affiliates.

     

    (a)           Not,
and not suffer or permit any other Loan Party Subsidiary to, enter into any
transaction with any Affiliate of the Borrower or of any such Subsidiary,
except:

     

    (i)           as
expressly permitted by this Agreement; or

     

    (ii)           in
the ordinary course of business and pursuant to the reasonable requirements of
the business of such Loan Party or such Subsidiary provided that, in the
case of this clause (ii), upon fair and reasonable terms no less favorable to
such Loan Party or such Subsidiary than would be obtained in a comparable arm’s
length transaction with a Person not an Affiliate of the Borrower or such
Subsidiary and which are disclosed in writing to the Agent.

     

    (b)           Effective
from and after the Closing Date, the Loan Parties shall cease and desist all
existing transactions with EBOF and Durant (other than, in the case of PNG, the
transactions contemplated under the Share Exchange Agreement) and shall not
enter into any new transactions of any sort whatsoever with EBOF or Durant
subsequent to the Closing Date except upon first obtaining the prior written
consent of Agent and Lenders thereto.

     

    

    7.9.           Inconsistent
Agreements.

     

    Not, and
not suffer or permit any other Loan Party (including Parent) to, enter into any
agreement containing any provision which would (a) be violated or breached by
any borrowing by Borrower hereunder or by the performance by Borrower or any
other Loan Party (including Parent) of any of its Obligations hereunder or under
any other Loan Document, (b) prohibit Borrower or any other Loan Party
(including Parent) from granting to Agent and Lenders a Lien on any of its
assets that constitute Collateral or (c) other than pursuant to any agreement in
effect on the Closing Date, or pursuant to the Senior Debt Documents, create or
permit to exist or become effective any encumbrance or restriction on the
ability of any other Loan Party Subsidiary to (i) pay dividends or make other
distributions to Borrower or any other Loan Party Subsidiary, or pay any Debt
owed to Borrower or any other Loan Party Subsidiary, (ii) make

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    loans or
advances to Borrower or any other Loan Party Subsidiary or (iii) transfer any of
its assets or properties to Borrower or any other Loan Party
Subsidiary.

     

    7.10.                      Business
Activities.

     

    Not, and
not suffer or permit any other Loan Party Subsidiary to, engage in any line of
business other than the businesses engaged in on the Closing Date and businesses
reasonably related thereto.

     

    7.11.                      Investments.

     

    Not, and
not suffer or permit any other Loan Party Subsidiary to, make or permit to exist
any Investment in any other Person, except the following:

     

    (a)           contributions
by Borrower to the common equity of any Wholly-Owned Domestic Subsidiary of
Borrower in existence on the Closing Date, or by any Subsidiary that is a Loan
Party to the capital of any other Wholly-Owned Domestic Subsidiary of Borrower
in existence on the Closing Date, so long as the recipient of any such common
equity contribution is the Borrower or at such time is a guarantor of the
Obligations and such guaranty or the Obligations is secured by a pledge of all
of its equity interests and substantially all of its real and personal property,
in each case in accordance with Section
6.8;

     

    (b)           Investments
constituting Debt permitted by Section
7.1(c);

     

    (c)           Contingent
Obligations constituting Debt permitted by Section 7.1 or Liens
permitted by Section
7.2;

     

    (d)           Cash
Equivalent Investments;

     

    (e)           loans
and advances to employees in the ordinary course of business not to exceed
$100,000 in aggregate principal amount at any time outstanding;

     

    (f)           Omitted;
and

     

    (g)           Investments
listed on Schedule
7.11 as of the Closing Date.

     

    7.12.                      Omitted.

     

    7.13.                      Fiscal
Year.

     

    Not, and
not suffer or permit any other Loan Party Subsidiary or Parent to, change its
Fiscal Year.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    7.14.                      Financial
Covenants.

     

    7.14.1.                      Fixed Charge Coverage
Ratio.

     

    Not and
not suffer or permit the Fixed Charge Coverage Ratio for any Computation Period
to be less than the applicable amount set forth below for such Computation
Period:

     

    
      	
              Computation Period

            	
              Ratio

            
	
              Fiscal
      Quarters Ending June 30, 2008

              through
      June 30, 2009

            	
              1.10:1

            
	
              Fiscal
      Quarters Ending September 30, 2009

              and
      thereafter

            	
              1.15:1

            

    

    7.14.2.                      EBITDA.

     

    Not and
not suffer or permit EBITDA for any Fiscal Quarter to be less than the
$1,050,000 for each Fiscal Quarter ending on or after December 31,
2008.

     

    

    7.14.3.                      Capital
Expenditures.

     

    Not make,
and not suffer or permit to be made, Capital Expenditures during each fiscal
period described below to exceed the amount specified below corresponding
thereto:

     

    
      	
              Fiscal Period

            	
              Capital Expenditures

            
	
              Closing
      Date through December 31, 2008

            	
              $750,000

            
	
              January
      1, 2009 through December 31, 2009

            	
              $1,000,000

            
	
              January
      1, 2010 through Maturity Date

            	
              $500,000

            

    

    

     

    7.15.                      Deposit Accounts and
Securities Accounts.

     

    Not, and
not suffer or permit any other Domestic Loan Party Subsidiary to, maintain or
establish any deposit account or securities account other than the deposit
accounts and securities accounts set forth on Schedule 7.15 without
prior written notice to Agent and unless Agent, Borrower or such other Loan
Party and the bank or securities intermediary at which such deposit account or
securities account, as applicable, is to be opened or maintained enter into a
Control Agreement regarding such deposit account or securities account, as
applicable, on terms satisfactory to Agent.

     

    7.16.                      Sale-Leasebacks

     

    .  Not
and not suffer or permit any other Loan Party Subsidiary to, engage in a sale
leaseback, synthetic lease or similar transaction involving any of its
assets.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    7.17.                      Hazardous
Substances

     

    .  Not,
and not suffer or permit any other Loan Party Subsidiary or Parent to, cause or
suffer to exist any release of any Hazardous Substances at, to or from any real
property owned, leased, subleased or otherwise operated or occupied by any Loan
Party Subsidiary or Parent that would violate any Environmental Law, form the
basis for any Environmental Claims or otherwise adversely affect the value or
marketability of any real property (whether or not owned by any Loan Party
Subsidiary or Parent), other than such violations, Environmental Claims and
effects that would not, in the aggregate, be reasonably be expected to have a
Material Adverse Effect.  Notwithstanding the foregoing, under no
circumstances will any Domestic Loan Party Subsidiary cause or suffer to exist
any disposal of any Hazardous Substances at, on, under or in any real property
owned, leased, subleased, or otherwise operated or occupied by any Loan Party
Subsidiary or Parent.

     

    
      	
              Section
      8.

            	
              Events of Default;
      Remedies.

            

    

     

    8.1.           Events of
Default.

     

    Each of
the following shall constitute an Event of Default under this
Agreement:

     

    8.1.1.                Non-Payment of
Credit.

     

    Default,
in the payment when due of the principal of the Loan shall occur; or default,
and continuance thereof for 5 days, in the payment when due of any interest,
fee, or other amount payable by any Loan Party hereunder or under any other Loan
Document shall occur.

     

    8.1.2.                Default Under Other
Debt.

     

    (a)           Any
default shall occur under the terms applicable to any Debt (other than the
Obligations) of any Loan Party in an aggregate amount (for all such Debt so
affected and including undrawn committed or available amounts and amounts owing
to all creditors under any combined or syndicated credit arrangement) exceeding
$1,000,000 and such default shall result in the acceleration of the maturity of
such Debt or permit the holder or holders thereof, or any trustee or agent for
such holder or holders, to cause such Debt to become due and payable (or require
Borrower or any other Loan Party to purchase or redeem such Debt or post cash
collateral in respect thereof) prior to its expressed maturity.

     

    8.1.3.                Bankruptcy;
Insolvency.

     

    Any Loan
Party becomes insolvent or generally fails to pay, or admits in writing its
inability or refusal to pay, debts as they become due; or any Loan Party applies
for, consents to, or acquiesces in the appointment of a trustee, receiver or
other custodian for such Loan Party or any property thereof, or makes a general
assignment for the benefit of creditors; or, in the absence of such application,
consent or acquiescence, a trustee, receiver or other custodian is appointed for
any Loan Party or for a substantial part of the property of any thereof and is
not discharged within 60 days; or any bankruptcy, reorganization, debt
arrangement, or other case or proceeding under any bankruptcy or insolvency law,
or any dissolution or liquidation proceeding, is commenced in respect of any
Loan Party, and if such case or proceeding is not commenced by such Loan Party,
it is consented to or acquiesced in by such Loan Party, or

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    remains
for 60 days undismissed; or any Loan Party takes any action to authorize, or in
furtherance of, any of the foregoing.

     

    8.1.4.                Non-Compliance with Loan
Documents.

     

    (a)           (a)
Failure by Borrower or any other Loan Party to comply with or to perform any
covenant set forth in Sections 6.1.1, 6.1.2, 6.1.3, 6.1.4, 6.1.5(a), 6.1.7, 6.3(b) and (c), 6.5, 6.7, and 7; or (b) failure by
Borrower or any other Loan Party to comply with or to perform any other
provision of this Agreement or any other Loan Document applicable to it (and not
constituting an Event of Default under any other provision of this Section 8) and
continuance of such failure described in this clause (b) for 30
days.

     

    8.1.5.                Representations;
Warranties.

     

    Any
representation or warranty made by any Loan Party herein or any other Loan
Document is breached or is false or misleading in any material respect, or any
schedule, certificate, financial statement, report, notice or other writing
furnished by any Loan Party to Agent or any Lender in connection herewith is
false or misleading in any material respect on the date as of which the facts
therein set forth are stated or certified.

     

    8.1.6.                Pension
Plans.

     

    (a)           Institution
of any steps by any Person to terminate a Pension Plan if as a result of such
termination any Loan Party or any member of the Controlled Group could be
required to make a contribution to such Pension Plan, or could incur a liability
or obligation to such Pension Plan, in excess of $250,000; (b) a contribution
failure occurs with respect to any Pension Plan sufficient to give rise to a
Lien under Section 302(f) of ERISA; or (c) there shall occur any withdrawal or
partial withdrawal from a Multiemployer Pension Plan and the withdrawal
liability (without unaccrued interest) to Multiemployer Pension Plans as a
result of such withdrawal (including any outstanding withdrawal liability that
Borrower or any other Loan Party or any member of the Controlled Group have
incurred on the date of such withdrawal) exceeds $250,000.

     

    8.1.7.                Judgments.

     

    (a)           Final
judgments which exceed an aggregate of $250,000 shall be rendered against any
Loan Party and shall not have been paid, discharged or vacated or had execution
thereof stayed pending appeal within 30 days after entry or filing of such
judgments; or

     

    (b)           One
or more non-monetary judgments, orders or decrees shall be rendered against any
one or more of the Loan Parties or any of their respective Subsidiaries which
has had or would reasonably be expected to have, either individually or in the
aggregate, a Material Adverse Effect, and there shall be any period of ten (10)
consecutive days during which a stay of enforcement of such judgment or order,
by reason of a pending appeal or otherwise, shall not be in effect.

     

    8.1.8.                Invalidity of Collateral
Documents.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Any
Collateral Document shall cease to be in full force and effect; or any Loan
Party or other grantor or pledgor (or any Person by, through or on behalf of any
Loan Party, grantor or pledgor) shall contest in any manner the validity,
binding nature or enforceability of any Collateral Document.

     

    8.1.9.                Invalidity of Intercreditor
Provisions.

     

    Any
subordination provision in any document or instrument governing Debt that is
intended to be subordinated to the Obligations or any subordination provision in
any subordination agreement that relates to any such Debt, or any subordination
provision in any guaranty by any Loan Party of any such Debt, shall cease to be
in full force and effect, or any Person (including the holder of any applicable
Debt) shall contest in any manner the validity, binding nature or enforceability
of any such provision.

     

    8.1.10.                      Change of
Control.

     

    (a)           Parent
shall cease to directly own and control 100% of each class of the outstanding
equity interests of Borrower, (b) Borrower shall cease to, directly or
indirectly, own and control 100% of each class of the outstanding equity
interests of each Subsidiary of the Borrower, or (c) a “Change of Control” or
other similar event shall occur, as defined in, or under, the Senior Debt
Documents or any other documentation evidencing or otherwise relating to any
Senior Debt.

     

    8.1.11.                      Gas Supply and Hedge
Contracts.

     

    Any Gas
Supply and Hedge Contract shall be terminated, cancelled or modified in a manner
that is materially adverse to Arizona LNG; provided, that
notwithstanding the foregoing, any Gas Supply and Hedge Contract may be replaced
by a similar agreement with terms no less favorable to Arizona LNG.

    

    8.2.           Remedies.

     

    If any
Event of Default described in Section 8.1.3 shall
occur, the Loan and all other Obligations shall become immediately due and
payable, all without presentment, demand, protest or notice of any kind; and, if
any other Event of Default shall occur and be continuing, Agent (upon the
written request of Required Lenders) shall declare all or any part of the Loan
and other Obligations to be due and payable, whereupon the Loan and other
Obligations shall become immediately due and payable (in whole or in part, as
applicable), all without presentment, demand, protest or notice of any
kind.  Agent shall promptly advise Borrower of any such declaration,
but failure to do so shall not impair the effect of such
declaration.  Notwithstanding the foregoing, the effect as an Event of
Default of any event described in Section 8.1.1 may only be waived by the
written concurrence of each Lender, and the effect as an Event of Default of any
other event described in this Section 8 may be
waived by the written concurrence of Required Lenders.  Any cash
collateral delivered hereunder shall be applied by Agent to any remaining
Obligations and any excess remaining after the Obligations shall have been Paid
in Full shall be delivered to Borrower or as a court of competent jurisdiction
may elect.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Section
9.                      Agent.

     

    9.1.           Appointment;
Authorization.

     

    (a)           Each
Lender hereby irrevocably appoints, designates and authorizes Agent to take such
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 it by the terms of this Agreement or any other Loan Document,
together with such powers as are reasonably incidental
thereto.  Notwithstanding any provision to the contrary contained
elsewhere in this Agreement or in any other Loan Document, Agent shall not have
any duty or responsibility except those expressly set forth herein, nor shall
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.

     

    9.2.           Delegation of
Duties.

     

    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.  Agent
shall not be responsible for the negligence or misconduct of any agent or
attorney in fact that it selects with reasonable care.

     

    9.3.           Limited
Liability.

     

    None of
Agent or any of its directors, officers, employees or agents 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 to the extent resulting from its own gross
negligence or willful misconduct as determined by a court of competent
jurisdiction), or (b) be responsible in any manner to any Lender for any
recital, statement, representation or warranty made by any Loan Party or
Affiliate of any Loan Party, or any officer 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 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 the creation, perfection or priority of any Lien or
security interest therein), or for any failure of any Loan Party or any other
party to any Loan Document to perform its Obligations hereunder or
thereunder.  Agent shall not 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 properties, books or records of any Loan Party or
Affiliate of any Loan Party.

     

    9.4.           Reliance.

     

    Agent
shall be entitled to rely, and shall be fully protected in relying, upon any
writing, resolution, notice, consent, certificate, affidavit, letter, telegram,
facsimile, telex or telephone message, statement or other document 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 any Loan Party), independent accountants and other
experts

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    selected
by Agent.  Agent shall be fully justified in failing or refusing to
take any action under this Agreement or any other Loan Document unless it shall
first receive such advice or concurrence of Required Lenders (or all Lenders if
expressly required hereunder) as it deems appropriate and, if it so requests,
confirmation from Lenders of their obligation to indemnify Agent against any and
all liability and expense which may be incurred by it by reason of taking or
continuing to take any such action.  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 Required Lenders
(or all Lenders if expressly required hereunder) and such request and any action
taken or failure to act pursuant thereto shall be binding upon each
Lender.

     

    9.5.           Notice of
Default.

     

    Agent
shall not be deemed to have knowledge or notice of the occurrence of any Event
of Default or Default except with respect to defaults in the payment of
principal, interest and fees required to be paid to Agent for the account of
Lenders, unless Agent shall have received written notice from a Lender or
Borrower referring to this Agreement, describing such Event of Default or
Default and stating that such notice is a “notice of default”.  Agent
will notify Lenders of its receipt of any such notice or any such default in the
payment of principal, interest and fees required to be paid to Agent for the
account of Lenders.  Agent shall take such action with respect to such
Event of Default or Default as may be requested by Required Lenders in
accordance with Section 8; provided
that unless and until Agent has received any such request, Agent may (but shall
not be obligated to) take such action, or refrain from taking such action, with
respect to such Event of Default or Default as it shall deem advisable or in the
best interest of Lenders.

     

    9.6.           Credit
Decision.

     

    Each
Lender acknowledges that Agent has not made any representation or warranty to
it, and that no act by Agent hereafter taken, including any review of the
affairs of Borrower and the other Loan Parties, shall be deemed to constitute
any representation or warranty by Agent to any Lender.  Each Lender
represents to Agent that it has, independently and without reliance upon Agent
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 Borrower and the
other Loan Parties, and made its own decision to enter into this Agreement and
to extend credit to Borrower hereunder.  Each Lender also represents
that it will, independently and without reliance upon Agent 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 the Loan Parties.  Except for notices, reports and
other documents expressly herein required to be furnished to Lenders by Agent,
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 or other condition or creditworthiness of any Loan Party
which may come into the possession of Agent.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    9.7.           Indemnification.

     

    Whether
or not the transactions contemplated hereby are consummated, each Lender shall
indemnify upon demand Agent and its directors, officers, employees and agents
(to the extent not reimbursed by or on behalf of Borrower and without limiting
the obligation of Borrower to do so), based on such Lender’s Pro Rata Share,
from and against any and all actions, causes of action, suits, losses,
liabilities, damages and expenses, including Legal Costs, except to the extent
any thereof result from the applicable Person’s own gross negligence or willful
misconduct, as determined by a court of competent
jurisdiction.  Without limitation of the foregoing, each Lender shall
reimburse Agent upon demand for its ratable share of any costs or out of pocket
expenses (including Legal Costs) incurred by 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 Agent is not reimbursed for such expenses by or on behalf of
Borrower.  The undertaking in this Section 9.7 shall survive repayment
of the Loan, cancellation of the Notes, any foreclosure under, or modification,
release or discharge of, any or all of the Collateral Documents, termination of
this Agreement and the resignation or replacement of Agent.

     

    9.8.           Agent
Individually.

     

    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
any Loan Party and any Affiliate of any Loan Party as though Agent were not
Agent hereunder and without notice to or consent of any Lender.  Each
Lender acknowledges that, pursuant to such activities, Agent or its Affiliates
may receive information regarding Loan Parties or their Affiliates (including
information that may be subject to confidentiality obligations in favor of any
such Loan Party or such Affiliate) and acknowledge that Agent shall be under no
obligation to provide such information to them.  With respect to their
portions of the Loan (if any), Agent and its Affiliates shall have the same
rights and powers under this Agreement as any other Lender and may exercise the
same as though Agent were not Agent, and the terms “Lender” and “Lenders”
include Agent and its Affiliates, to the extent applicable, in their individual
capacities.

     

    9.9.           Successor
Agent.

     

    Agent may
resign as Agent at any time upon 30 days’ prior notice to Lenders.  If
Agent resigns under this Agreement, Required Lenders shall, with (so long as no
Event of Default exists) the consent of Borrower (which shall not be
unreasonably withheld or delayed), appoint from among Lenders a successor agent
for Lenders.  If no successor agent is appointed prior to the
effective date of the resignation of Agent, Agent may appoint, on behalf after
consulting with Lenders and (so long as no Event of Default exists) Borrower, a
successor agent from among Lenders.  Upon the acceptance of its
appointment as successor agent hereunder, such successor agent shall succeed to
all the rights, powers and duties of the retiring Agent and the term “Agent”
shall mean such successor agent, and the retiring Agent’s appointment, powers
and duties as Agent shall be terminated.  After any retiring Agent’s
resignation hereunder as Agent, the

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    provisions
of this Section
9 and Sections
10.4 and 10.5 shall continue
to inure to its benefit as to any actions taken or omitted to be taken by it
while it was Agent under this Agreement.  If no successor agent has
accepted appointment as Agent by the date which is 30 days following a retiring
Agent’s notice of resignation, the retiring Agent’s resignation shall
nevertheless thereupon become effective and Lenders shall perform all of the
duties of Agent hereunder until such time, if any, as Required Lenders appoint a
successor agent as provided for above.

     

    9.10.                      Collateral
Matters.

     

    Lenders
irrevocably authorize Agent, at its option and in its discretion, (a) to release
any Lien granted to or held by Agent under any Collateral Document (i) when all
Obligations have been Paid in Full; (ii) constituting property sold or to be
sold or disposed of as part of or in connection with any sale or other
disposition permitted hereunder (it being agreed and understood that Agent may
conclusively rely without further inquiry on a certificate of an officer of
Borrower as to the sale or other disposition of property being made in
compliance with this Agreement); or (iii) subject to Section 10.1, if
approved, authorized or ratified in writing by Required Lenders; or (b) to
subordinate its interest in any Collateral to any holder of a Lien on such
Collateral which is permitted by clause (d)(i) or (d)(iii) of Section 7.2 (it being
understood that Agent may conclusively rely on a certificate from Borrower in
determining whether the Debt secured by any such Lien is permitted by Section
7.1(b)).  Upon request by Agent at any time, Lenders will confirm in
writing Agent’s authority to release, or subordinate its interest in, particular
types or items of Collateral pursuant to this Section
9.10.

     

    
      	
              Section
      10.

            	
              Miscellaneous.

            

    

     

    10.1.                      Waiver;
Amendments.

     

    No delay
on the part of Agent or any Lender in the exercise of any right, power or remedy
shall operate as a waiver thereof, nor shall any single or partial exercise by
any of them of any right, power or remedy preclude other or further exercise
thereof, or the exercise of any other right, power or remedy.  No
amendment, modification or waiver of, or consent with respect to, any provision
of this Agreement, the Notes or any of the other Loan Documents (or any
subordination and intercreditor agreement or other subordination provisions
relating to any other Debt) shall in any event be effective unless the same
shall be in writing and approved by Lenders having aggregate Pro Rata Shares of
not less than the aggregate Pro Rata Shares expressly designated herein with
respect thereto or, in the absence of such designation as to any provision of
this Agreement, by Required Lenders, and then any such amendment, modification,
waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given.  No amendment, modification, waiver
or consent shall increase any Commitment, extend the date scheduled for payment
of any principal of (except as set forth below) or interest on the Loan or any
fees or other amounts payable hereunder or under the other Loan Documents or
reduce the principal amount of the Loan, the amount or rate of interest thereon
(provided, that Required Lenders may rescind an imposition of default interest
pursuant to Section
2.4.1) or any fees or other amounts payable hereunder or under the other
Loan Documents, without, in each case, the consent of each Lender directly
affected thereby.  No amendment, modification, waiver or consent shall
release any party from its guaranty under the Guarantee and
Collateral

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Agreement
or all or any substantial part of the Collateral granted under the Collateral
Documents, change the definition of Required Lenders, change any provision of
this Section
10.1, change the provisions of Section 2.8.2 or
reduce the aggregate Pro Rata Share required to effect any amendment,
modification, waiver or consent, without, in each case, the consent of all
Lenders.  No provision of Section 9 or other provision of this
Agreement affecting Agent in its capacity as such shall be amended, modified or
waived without the consent of Agent.

     

    10.2.                      Notices.

     

    All
notices hereunder shall be in writing (including facsimile transmission) and
shall be sent to the applicable party at its address shown on Annex II or at such
other address as such party may, by written notice received by the other
parties, have designated as its address for such purpose.  Notices
sent by facsimile transmission shall be deemed to have been given when sent;
notices sent by mail shall be deemed to have been given three Business Days
after the date when sent by registered or certified mail, postage prepaid; and
notices sent by hand delivery or overnight courier service shall be deemed to
have been given when received.  Borrower and Lenders each hereby
acknowledge that, from time to time, Agent may deliver information and notices
to Lenders using the internet service “Intralinks” or any similar
service.  Each of Borrower and each Lender hereby agree that Agent
may, in its discretion, utilize Intralinks or any similar service for such
purpose.

     

    10.3.                      Computations.

     

    Unless
otherwise specifically provided herein, any accounting term used in this
Agreement (including in Section 7.14 or any
related definition) shall have the meaning customarily given such term in
accordance with GAAP, and all financial computations (including pursuant to
Section 7.14
and the related definitions, and with respect to the character or amount of any
asset or liability or item of income or expense, or any consolidation or other
accounting computation) hereunder shall be computed in accordance with GAAP
consistently applied; provided that if Borrower notifies Agent that Borrower
wishes to amend any covenant in Section 7.14 (or any
related definition) to eliminate or to take into account the effect of any
change after the Closing Date in GAAP on the operation of such covenant (or if
Agent notifies Borrower that Required Lenders wish to amend Section 7.14 (or any
related definition) for such purpose), then Borrower’s compliance with such
covenant shall be determined on the basis of GAAP in effect immediately before
the relevant change in GAAP became effective, until either such notice is
withdrawn or such covenant (or related definition) is amended in a manner
satisfactory to Borrower and Required Lenders.  The explicit
qualification of terms or computations by the phrase “in accordance with GAAP”
shall in no way be construed to limit the foregoing.

     

    10.4.                      Costs;
Expenses.

     

    Borrower
agrees to pay on demand all reasonable out-of-pocket costs and expenses of Agent
(including Legal Costs) in connection with the preparation, execution,
syndication, delivery and administration (including perfection and protection of
Collateral) of this Agreement, the other Loan Documents and all other documents
provided for herein or delivered or to be delivered hereunder or in connection
herewith (including any proposed or actual amendment,

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    supplement
or waiver to any Loan Document), and all reasonable out-of-pocket costs and
expenses (including Legal Costs) incurred by Agent and each Lender after an
Event of Default in connection with the collection of the Obligations and
enforcement of this Agreement, the other Loan Documents or any such other
documents; provided, however, that notwithstanding the foregoing, the Borrower
shall not be required to reimburse the Agent or Lenders for expenses incurred on
or prior to the Closing Date by the Agent and Lenders in connection with the
preparation, execution and delivery of the Loan Documents in an aggregate amount
in excess of $100,000.  In addition, Borrower agrees to pay, and to
save Agent and Lenders harmless from all liability for, any fees of Borrower’s
auditors in connection with any reasonable exercise by Agent and Lenders of
their rights pursuant to Section
6.2.  All Obligations provided for in this Section 10.4 shall
survive repayment of the Loan, cancellation of the Notes and termination of this
Agreement.

     

    10.5.                      Indemnification by
Borrower.

     

    In
consideration of the execution and delivery of this Agreement by Agent and
Lenders and the agreement to extend the Commitments provided hereunder, Borrower
hereby agrees to indemnify, exonerate and hold Agent, each Lender and each of
the officers, directors, employees, Affiliates and agents of Agent and each
Lender (each a “Lender
Party”) free and harmless from and against any and all actions, causes of
action, suits, losses, liabilities (including, without limitation, strict
liabilities), damages, fines, penalties and expenses, including Legal Costs
(collectively, the “Indemnified
Liabilities”), incurred by Lender Parties or any of them as a result of,
or arising out of, or relating to (a) any repayment of Debt, tender offer,
merger, purchase of equity interests, purchase of assets or other similar or
dissimilar transaction financed or proposed to be financed in whole or in part,
directly or indirectly, with the proceeds of the Loan, (b) the generation, use,
handling, recycling, reclamation, release, emission, discharge, transportation,
storage, treatment or disposal of any Hazardous Substance at any property owned
or leased by Borrower or any other Loan Party, (c) any violation of or liability
under any Environmental Laws or any Environmental Claim with respect to
conditions at any property owned or leased by any Loan Party or the operations
conducted thereon, (d) the investigation, cleanup or remediation of offsite
locations at which any Loan Party or their respective predecessors are alleged
to have directly or indirectly released or disposed of Hazardous Substances and
any related Environmental Claims or (e) the execution, delivery, performance or
enforcement of this Agreement or any other Loan Document by any Lender Party,
except to the extent any such Indemnified Liabilities result from the applicable
Lender Party’s own gross negligence or willful misconduct as determined by a
court of competent jurisdiction.  If and to the extent that the
foregoing undertaking may be unenforceable for any reason, Borrower hereby
agrees to make the maximum contribution to the payment and satisfaction of each
of the Indemnified Liabilities which is permissible under applicable
law.  All Obligations provided for in this Section 10.5 shall
survive repayment of the Loan, cancellation of the Notes, any foreclosure under,
or any modification, release or discharge of, any or all of the Collateral
Documents and termination of this Agreement.

     

    10.6.                      Marshaling; Payments Set
Aside.

     

    Neither
Agent nor any Lender shall be under any obligation to marshal any assets in
favor of Borrower or any other Person or against or in payment of any or all of
the Obligations.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    To the
extent that Borrower makes a payment or payments to Agent or any Lender, or
Agent or any Lender enforces its Liens or exercises its rights of set-off, and
such payment or payments or the proceeds of such enforcement or set-off or any
part thereof are subsequently invalidated, declared to be fraudulent or
preferential, set aside or required (including pursuant to any settlement
entered into by Agent or any Lender in its discretion) to be repaid to a
trustee, receiver or any other party in connection with any bankruptcy,
insolvency or similar proceeding, or otherwise, then (a) to the extent of such
recovery, the obligation hereunder or part thereof originally intended to be
satisfied shall be revived and continued in full force and effect as if such
payment had not been made or such enforcement or setoff had not occurred and (b)
each Lender severally agrees to pay to Agent upon demand its ratable share of
the total amount so recovered from or repaid by Agent to the extent paid to such
Lender.

     

    10.7.                      Nonliability of
Lenders.

     

    The
relationship between Borrower on the one hand and Lenders and Agent on the other
hand shall be solely that of borrower and lender.  Neither Agent nor
any Lender shall have any fiduciary responsibility to
Borrower.  Neither Agent nor any Lender undertakes any responsibility
to Borrower to review or inform Borrower of any matter in connection with any
phase of Borrower’s business or operations.  Execution of this
Agreement by Borrower constitutes a full, complete and irrevocable release of
any and all claims which Borrower may have at law or in equity in respect of all
prior discussions and understandings, oral or written, relating to the subject
matter of this Agreement and the other Loan Documents.  Neither Agent
nor any Lender shall have any liability with respect to, and Borrower hereby
waives, releases and agrees not to sue for, any special, indirect, punitive or
consequential damages or liabilities.

     

    10.8.                      Assignments;
Participations.

     

    10.8.1.                      Assignments.

     

    (a)           Any
Lender may at any time assign to one or more Persons (any such Person, an “Assignee”) all or any
portion of such Lender’s share of the Loan, with the prior written consent of
Agent and, so long as no Event of Default exists, Borrower (which consents shall
not be unreasonably withheld or delayed and shall not be required for an
assignment by a Lender to a Lender or an Affiliate of a Lender or an Approved
Fund of a Lender).  Except as Agent may otherwise agree, any such
assignment (other than any assignment by a Lender to a Lender or an Affiliate or
Approved Fund of a Lender) shall be in a minimum aggregate amount equal to
$2,500,000 or, if less, the entire principal amount of the Loan being
assigned.  Borrower and Agent shall be entitled to continue to deal
solely and directly with such Lender in connection with the interests so
assigned to an Assignee until Agent shall have received and accepted an
effective Assignment Agreement executed, delivered and fully completed by the
applicable parties thereto and a processing fee of $3,500 to be paid by the
Lender to whom such interest is assigned; provided, that no such fee shall be
payable in connection with any assignment by a Lender to a Lender or an
Affiliate or Approved Fund of a Lender.  Any attempted assignment not
made in accordance with this Section 10.8.1 shall
be treated as the sale of a participation under Section
10.8.2.  Borrower shall be deemed to have granted its consent
to any assignment requiring its consent hereunder unless Borrower has expressly
objected to such assignment within three Business Days after notice
thereof.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    (b)           From
and after the date on which the conditions described above have been met, (i)
such Assignee shall be deemed automatically to have become a party hereto and,
to the extent that rights and obligations hereunder have been assigned to such
Assignee pursuant to such Assignment Agreement, shall have the rights and
obligations of a Lender hereunder and (ii) the assigning Lender, to the extent
that rights and obligations hereunder have been assigned by it pursuant to such
Assignment Agreement, shall be released from its rights (other than its
indemnification rights) and obligations hereunder.  Upon the request
of the Assignee (and, as applicable, the assigning Lender) pursuant to an
effective Assignment Agreement, Borrower shall execute and deliver to Agent for
delivery to the Assignee (and, as applicable, the assigning Lender) a Note in
the principal amount of the Assignee’s Pro Rata Share of the
Loan.  Each such Note shall be dated the effective date of such
assignment.  Upon receipt by the assigning Lender of such Note, the
assigning Lender shall return to Borrower any prior Note held by
it.

     

    (c)           Agent,
acting solely for this purpose as an agent of Borrower, shall maintain at one of
its offices in the United States a copy of each Assignment Agreement delivered
to it and a register for the recordation of the names and addresses of each
Lender, and principal amount of the Loan owing to, such Lender pursuant to the
terms hereof.  The entries in such register shall be conclusive, and
Borrower, Agent and Lenders may treat each Person whose name is recorded therein
pursuant to the terms hereof as a Lender hereunder for all purposes of this
Agreement, notwithstanding notice to the contrary.  Such register
shall be available for inspection by Borrower and any Lender, at any reasonable
time upon reasonable prior notice to Agent.

     

    (d)           Notwithstanding
the foregoing provisions of this Section 10.8.1 or any
other provision of this Agreement, any Lender may at any time assign all or any
portion of its Pro Rata Share of the Loan and its Note (i) as collateral
security to a Federal Reserve Bank or, as applicable, to such Lender’s trustee
for the benefit of its investors (but no such assignment shall release any
Lender from any of its obligations hereunder) and (ii) to (w) an Affiliate of
such Lender which is at least 50% owned (directly or indirectly) by such Lender
or by its direct or indirect parent company, (x) its direct or indirect parent
company, (y) to one or more other Lenders or (z) to a Approved
Fund.

     

    10.8.2.                      Participations.

     

    Any
Lender may at any time with, so long as no Event of Default is continuing and
such Lender intends to sell more than 50% of its Pro Rata Share (as of such
date) of the Loan, Commitments or other interests hereunder, the consent of the
Borrower sell to one or more Persons participating interests in its Pro Rata
Share of the Loan, Commitments or other interests hereunder (any such Person, a
“Participant”).  In
the event of a sale by a Lender of a participating interest to a Participant,
(a) such Lender’s obligations hereunder shall remain unchanged for all purposes,
(b) Borrower and Agent shall continue to deal solely and directly with such
Lender in connection with such Lender’s rights and obligations hereunder and (c)
all amounts payable by Borrower shall be determined as if such Lender had not
sold such participation and shall be paid directly to such
Lender.  Borrower agrees that if amounts outstanding under this
Agreement are due and payable (as a result of acceleration or otherwise), each
Participant shall be deemed to have the right of set-off in respect of its
participating interest in amounts owing under this Agreement to the same extent
as if the amount of its participating interest were owing directly
to

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    it as a
Lender under this Agreement; provided that such right of set-off shall be
subject to the obligation of each Participant to share with Lenders, and Lenders
agree to share with each Participant, as provided in Section
2.8.5.  Borrower also agrees that each Participant shall be
entitled to the benefits of Section 3 and Section 10.5 as if it
were a Lender.

     

    10.9.                      Confidentiality.

     

    Agent and
each Lender agree to use commercially reasonable efforts (equivalent to the
efforts Agent or such Lender applies to maintain the confidentiality of its own
confidential information) to maintain as confidential all information provided
to them by any Loan Party and designated as confidential, except that Agent and
each Lender may disclose such information (a) to Persons employed or engaged by
Agent or such Lender or any of their Affiliates (including collateral managers
of Lenders) in evaluating, approving, structuring or administering the Loan and
the Commitments; (b) to any assignee or participant or potential assignee or
participant that has agreed to comply with the covenant contained in this
Section 10.9 (and any such assignee or participant or potential assignee or
participant may disclose such information to Persons employed or engaged by them
as described in clause (a) above); (c) as required or requested by any federal
or state regulatory authority or examiner, or any insurance industry
association, or as reasonably believed by Agent or such Lender to be compelled
by any court decree, subpoena or legal or administrative order or process; (d)
as, on the advice of Agent’s or such Lender’s counsel, is required by law; (e)
in connection with the exercise of any right or remedy under the Loan Documents
or in connection with any litigation to which Agent or such Lender is a party;
(f) to any nationally recognized rating agency or investor of a Lender that
requires access to information about a Lender’s investment portfolio in
connection with ratings issued or investment decisions with respect to such
Lender; (g) that ceases to be confidential through no fault of Agent or any
Lender; (h) to a Person that is an investor or prospective investor in a
Securitization that agrees that its access to information regarding Borrower and
the Loan and Commitments is solely for purposes of evaluating an investment in
such Securitization and who agrees to treat such information as confidential;
(i) to a Person that is a trustee, collateral manager, servicer, noteholder or
secured party in a Securitization in connection with the administration,
servicing and reporting on the assets serving as collateral for such
Securitization; or (j) to a Person that is an investor or prospective investor
in Fourth Third or any of its Affiliates.  For purposes of this
Section, “Securitization” means
a public or private offering by a Lender or any of its Affiliates or their
respective successors and assigns, of securities which represent an interest in,
or which are collateralized, in whole or in part, by the Loan or the
Commitments.  Notwithstanding the foregoing, Borrower consents to the
publication by Agent or any Lender of a tombstone or similar advertising
material relating to the financing transactions contemplated by this Agreement,
and Agent reserves the right to provide to industry trade organizations
information necessary and customary for inclusion in league table
measurements.

     

    10.10.                      Captions.

     

    Captions
used in this Agreement are for convenience only and shall not affect the
construction of this Agreement.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    10.11.                      Nature
of Remedies.

     

    All
Obligations of Borrower and rights of Agent and Lenders expressed herein or in
any other Loan Document shall be in addition to and not in limitation of those
provided by applicable law.  No failure to exercise and no delay in
exercising, on the part of Agent or any Lender, any right, remedy, power or
privilege hereunder, shall operate as a waiver thereof; nor shall any single or
partial exercise of any right, remedy, power or privilege hereunder preclude any
other or further exercise thereof or the exercise of any other right, remedy,
power or privilege.

     

    10.12.                      Counterparts.

     

    This
Agreement may be executed in any number of counterparts and by the different
parties hereto on separate counterparts and each such counterpart shall be
deemed to be an original, but all such counterparts shall together constitute
but one and the same Agreement.  Receipt by telecopy of any executed
signature page to this Agreement or any other Loan Document shall constitute
effective delivery of such signature page.

     

    10.13.                      Severability.

     

    The
illegality or unenforceability of any provision of this Agreement or any
instrument or agreement required hereunder shall not in any way affect or impair
the legality or enforceability of the remaining provisions of this Agreement or
any instrument or agreement required hereunder.

     

    10.14.                      Entire
Agreement.

     

    Subject
to the succeeding paragraph, this Agreement, together with the other Loan
Documents, embodies the entire agreement and understanding among the parties
hereto and supersedes all prior or contemporaneous agreements and understandings
of such Persons, verbal or written, relating to the subject matter hereof and
thereof (except as relates to the fees described in Section 2.5.1) and
any prior arrangements made with respect to the payment by Borrower of (or any
indemnification for) any fees, costs or expenses payable to or incurred (or to
be incurred) by or on behalf of Agent or Lenders

     

    From and
after the Closing Date: (a) all terms and conditions of the Original Credit
Agreement and the Original Loan Documents, as amended by this Agreement and the
other Loan Documents being executed and delivered on the Closing Date, shall be
and remain in full force and effect, as so amended, and shall constitute the
legal, valid, binding and enforceable obligations of the Borrower and the other
Loan Parties party thereto to Agent and Lenders; (b) the terms and conditions of
the Original Credit Agreement shall be amended as set forth herein and, as so
amended, shall be restated in their entirety; (c) this Agreement shall not in
any way release or impair the rights, duties, Obligations or Liens created
pursuant to the Original Credit Agreement or any other Original Loan Document or
affect the relative priorities thereof, in each case to the extent in force and
effect thereunder as of the Closing Date, except as modified hereby or by
documents, instruments and agreements executed and delivered in connection
herewith, and all of such rights, duties, Obligations and Liens (as so modified)
are assumed, ratified and affirmed by the Borrower and the other Loan Parties;
(d) all indemnification obligations of Borrower and the other Loan Parties under
the Original Credit Agreement and the

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Original
Loan Documents shall survive the execution and delivery of this Agreement and
shall continue in full force and effect for the benefit of Agent and Lenders and
any other Person indemnified under the Original Credit Agreement or any other
Existing Loan Document at any time prior to the Closing Date but not to the
extent that any such indemnification obligations shall relate to any Indemnified
Liabilities resulting from any action or inaction by, or otherwise shall have
been caused by, any of Old Earth, EBOF or Durant; (e) the amendment and
restatement contained herein shall not, in any manner, be construed to
constitute payment of, or impair, limit, cancel or extinguish, or constitute a
novation in respect of, the Obligations evidenced by or arising under the
Original Credit Agreement and the other Original Loan Documents (as amended by
this Agreement and the other Loan Documents being executed on the Closing Date)
and the Liens and security interests securing such Obligations granted by
Borrower and the other Loan Parties in the Original Credit Agreement and the
other Loan Documents (as amended by this Agreement and the other Loan Documents
being executed on the Closing Date), which shall not in any manner be impaired,
limited, terminated, waived or released; (f) the execution, delivery and
effectiveness of this Agreement shall not operate as a waiver of any right,
power or remedy of Agent and Lenders under the Original Credit Agreement or any
other Original Loan Document, nor constitute a waiver of any covenant, agreement
or obligation under the Original Credit Agreement or any other Original Loan
Document, except to the extent that any such covenant, agreement or obligation
is no longer set forth herein or is modified hereby; and (g) any and all
references in the Original Loan Documents to the Original Credit Agreement
shall, without further action of the parties, be deemed a reference to the
Original Credit Agreement, as amended and restated by this Agreement, and as
this Agreement shall be further amended or amended and restated from time to
time hereafter.

     

    For avoidance of doubt, under the terms
and conditions of (i) the Original Credit Agreement and the Original Loan
Documents, as amended by this Agreement and the other Loan Documents being
executed and delivered on the Closing Date, or (ii) any other agreement,
instrument, court order or judgment, or other writing heretofore executed and
delivered to any Lender Party and relating to any of the Obligations, (A) no
Loan Party shall be deemed to guaranty or otherwise be responsible or liable in
any respect for, and no asset of any Loan Party or Lien with respect thereto or
other Collateral shall be deemed to secure, support or otherwise constitute
collateral or security for, any liability, indebtedness or other obligation of
any of Old Earth, EBOF or Durant with respect to the Obligations and (B) no
Default or Event of Default shall be deemed to occur or exist as a result of any
action or inaction by, or to be otherwise caused by any matter of circumstance
to the extent relating to, any of Old Earth, EBOF or Durant in their capacities
as “Loan Parties” under the Original Credit Agreement or any other Original Loan
Documents.

     

    10.15.                      Successors;
Assigns.

     

    This
Agreement shall be binding upon Borrower, Lenders and Agent and their respective
successors and assigns, and shall inure to the benefit of Borrower, Lenders and
Agent and the successors and assigns of Lenders and Agent.  No other
Person shall be a direct or indirect legal beneficiary of, or have any direct or
indirect cause of action or claim in connection with, this Agreement or any of
the other Loan Documents.  Borrower may not assign or transfer any of
its rights or Obligations under this Agreement without the prior written consent
of Agent and each Lender.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    10.16.                      Governing
Law.

     

    THIS
AGREEMENT AND EACH NOTE SHALL BE A CONTRACT MADE UNDER AND GOVERNED BY THE
INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE
PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO CONFLICT OF LAWS
PRINCIPLES (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS
LAW).

     

    10.17.                      Forum Selection; Consent to
Jurisdiction.

     

    ANY
LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT, SHALL BE BROUGHT AND MAINTAINED
EXCLUSIVELY IN THE COURTS OF THE STATE OF NEW YORK OR IN THE UNITED STATES
DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK; PROVIDED THAT ANY SUIT
SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT
AGENT’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE SUCH COLLATERAL OR OTHER
PROPERTY MAY BE FOUND.  EACH LOAN PARTY HEREBY EXPRESSLY AND
IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW
YORKAND OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW
YORK FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE.  EACH
LOAN PARTY FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED
MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW
YORK.  EACH LOAN PARTY HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER
HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT
REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM.

     

    10.18.                      Waiver of Jury
Trial.

     

    EACH LOAN
PARTY, AGENT AND EACH LENDER HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY
ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT, ANY
NOTE, ANY OTHER LOAN DOCUMENT AND ANY AMENDMENT, INSTRUMENT, DOCUMENT OR
AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION
HEREWITH OR THEREWITH OR ARISING FROM ANY LENDING RELATIONSHIP EXISTING IN
CONNECTION WITH ANY OF THE FOREGOING, AND AGREES THAT ANY SUCH ACTION OR
PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

     

    10.19.                      Collateral
Agent.

     

    Each
Lender hereby appoints Fourth Third LLC as its collateral agent under the
Guarantee and Collateral Agreement and agrees that in so acting Fourth Third LLC
will have all

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    the
rights, protections, exculpations, indemnities and other benefits provided to
Fourth Third LLC under Section 9 hereof, and
authorizes and directs Fourth Third LLC to take or refrain from taking any and
all action that it deems necessary or advisable in fulfilling its role as
Collateral Agent under the Guarantee and Collateral Agreement.

     

    

    

    [signature
pages follow]

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    The
parties hereto have caused this Agreement to be duly executed and delivered by
their duly authorized officers as of the date first set forth
above.

     

    PNG
VENTURES, INC.

    

    

    By: /s/ Kevin Markey    

    Name:  Kevin
Markey

    Title:                      Chief
Executive Officer

    

    

    NEW EARTH
LNG, LLC

    

    

    By: /s/ Kevin Markey    

    Name:  Kevin
Markey

    Title:                      President

    

    

    APPLIED
LNG TECHNOLOGIES USA, L.L.C.

    

    By:  NEW
EARTH LNG, LLC,

            its
sole member

    

    

    By: /s/ Kevin Markey    

    Name:  Kevin
Markey

    Title:                      President

    

    

    FLEET
STAR, INC.

    

    

    By: /s/ Dennis G. McLaughlin, III    

    Name:  Dennis
G. McLaughlin, III

    Title:                      Chief
Executive Officer

    

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

    EARTH
LEASING, INC.

    

        

    By: /s/ Dennis G. McLaughlin, III    

    Name:  Dennis
G. McLaughlin, III

    Title:                      Chief
Executive Officer

    

    

    ARIZONA
LNG, L.L.C.

    

    By:  NEW
EARTH LNG, LLC,

    

    

    By: /s/ Kevin Markey    

    Name:  Kevin
Markey

    Title:     President

    

    

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

    FOURTH
THIRD LLC,

    as Agent
and a Lender

    

    

    By: /s/ Seth R. Taube    

    Title:
Authorized Signatory

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

    ANNEX
I

     

    Commitments and Pro Rata
Shares

     

    
      	
              Lender

            	
              Loan Commitment

            	
              Pro Rata Share

            
	
              Fourth
      Third LLC

            	
              $34,000,000

            	
              100%

            

    

    

    

    
      
        
          
            I-1

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Annex
II

     

    Addresses

     

    Loan
Parties

    

    

    Address
for Notices:

    

    3100 Knox
Street, Suite 403

    Dallas,
Texas 75205

    Attention:                                Darren
L. Miles

    Telephone:                                (214)
[389-9800]

    Telecopy:                      (214)
[389-9805]

    

    FOURTH
THIRD LLC,

    as Agent
and a Lender

    

    Address
for Notices:

    

    Fourth
Third Capital LLC

    375 Park
Avenue

    Suite
3304

    New York,
New York 10152

    Attention:
Brian J. Cavanaugh

    Chief
Financial Officer

    Telephone:                                (212)
759-0777

    Telecopier:                                (212)
759-0091

    

    copies
to

    

    King
& Spalding LLP

    1185
Avenue of the Americas

    New York,
New York 10036

    Attention:
Robert S. Finley

    Telephone:                                (212)
556-2142

    Telecopier:                                (212)
556-2222

    

    Address
for Payments:

    

    Bank:                              [REDACTED]

    ABA:                              [REDACTED]

    FFC:                                [REDACTED]

    A/C:                                [REDACTED]

    

    

    Address:                      1230
Avenue of the Americas

    New York, New York 10020

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Exhibit
A

     

    Form of Assignment
Agreement

     

    This
Assignment Agreement (this “Assignment
Agreement”) is entered into as of __________ by and between the Assignor
named on the signature page hereto (“Assignor”) and the
Assignee named on the signature page hereto (“Assignee”).  Reference
is made to the Amended and Restated Credit Agreement dated as of June __,
2008  (as amended, supplemented, restated or otherwise modified from
time to time, the “Credit Agreement”)
among NEW EARTH LNG, LLC (“Borrower”), the other
Loan Parties named therein, the financial institutions party thereto from time
to time, as Lenders, and FOURTH THIRD LLC, as Agent.  Capitalized
terms used herein and not otherwise defined shall have the meanings assigned to
them in the Credit Agreement.

     

    Assignor
and Assignee agree as follows:

     

    1.           Assignor
hereby sells and assigns to Assignee, and Assignee hereby purchases and assumes
from Assignor the interests set forth on the schedule attached hereto, in and to
Assignor’s rights and obligations under the Credit Agreement and the other Loan
Documents as of the Effective Date (as defined below).  Such purchase
and sale is made without recourse, representation or warranty except as
expressly set forth herein.

     

    2.           Assignor
(i) represents that as of the Effective Date, that it is the legal and
beneficial owner of the interests assigned hereunder free and clear of any
adverse claim, (ii) makes no other representation or warranty and assumes no
responsibility with respect to any statement, warranties or representations made
in or in connection with the Credit Agreement or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Credit
Agreement, any Loan Documents or any other instrument or document furnished
pursuant thereto; and (iii) makes no representation or warranty and assumes no
responsibility with respect to the financial condition of any Loan Party or any
other Person or the performance or observance by any Loan Party of its
Obligations under the Credit Agreement or the Loan Documents or any other
instrument or document furnished pursuant thereto.

     

    3.           Assignee
(i) represents and warrants that it is legally authorized to enter into this
Assignment Agreement; (ii) confirms that it has received a copy of the Credit
Agreement, together with copies of the most recent financial statements
delivered pursuant thereto and such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into
this Assignment Agreement; (iii) agrees that it will, independently and without
reliance upon Agent, Assignor or any other Lender and based on such documents
and information as it shall deem appropriate at the time, continue to make its
own credit decisions in taking or not taking action under the Credit Agreement;
(iv) appoints and authorizes Agent to take such action as agent on its behalf
and to exercise such powers under the Credit Agreement as are delegated to Agent
by the terms thereof, together with such powers as are reasonably incidental
thereto; (v) agrees that it will perform in accordance with their terms all
obligations which by the terms of the Credit Agreement are required to be
performed by it as a Lender; (vi) represents that on the date of this Assignment
Agreement it is not presently aware of any facts that would cause it to make a
claim under the Credit Agreement; and (vii) if organized under the

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    laws of a
jurisdiction outside the United States, attaches the forms prescribed by the
Internal Revenue Service of the United States, which have been duly executed,
certifying as to Assignee’s exemption from United States withholding taxes with
respect to all payments to be made to Assignee under the Agreement or such other
documents as are necessary to indicate that all such payments are subject to
such tax at a rate reduced by an applicable tax treaty.

     

    4.           The
effective date for this Assignment Agreement shall be as set forth on the
schedule attached hereto (the “Effective
Date”).  Following the execution of this Assignment Agreement,
it will be delivered to Agent for acceptance and recording by Agent pursuant to
the Credit Agreement.

     

    5.           Upon
such acceptance and recording, from and after the Effective Date, (i) Assignee
shall be a party to the Credit Agreement and, to the extent provided in this
Assignment Agreement, have the rights and obligations of a Lender thereunder and
(ii) Assignor shall, to the extent provided in this Assignment Agreement,
relinquish its rights (other than indemnification rights) and be released from
its obligations under the Credit Agreement.

     

    6.           Upon
such acceptance and recording, from and after the Effective Date, Agent shall
make all payments in respect of the interest assigned hereby (including payments
of principal, interest, fees and other amounts) to Assignee.  Assignor
and Assignee shall make all appropriate adjustments in payments for periods
prior to the Effective Date with respect to the making of this assignment
directly between themselves.

     

    7.           THIS
ASSIGNMENT AND ACCEPTANCE SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN
ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO
CONFLICTS OF LAWS PRINCIPLES.

     

    8.           This
Assignment may be executed in any number of counterparts and by the different
parties hereto on separate counterparts and each such counterpart shall be
deemed to be an original, but all such counterparts shall together constitute
but one and the same Assignment.  Receipt by telecopy of any executed
signature page to this Assignment shall constitute effective delivery of such
signature page.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    The
parties hereto have caused this Agreement to be executed and delivered as of the
date first written above.

     

    

    ASSIGNOR:

    ___________________________

    

    

    By:                                                                         

    Title:                                                                         

    

    

    ASSIGNEE:

    ___________________________

    

    

    By:                                                                         

    Title:                                                                         

    

    

    [Consented
to:

    

    FOURTH
THIRD LLC,

    as
Agent

    

    

    By:                                                                         

    Title:                                                                         ]

    

    [___________________________

    

    

    By:                                                                         

    Title:                                                                         ]

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Schedule to Assignment
Agreement

     

    Assignor:                      ____________________

     

    Assignee:                      ____________________

     

    Effective
Date:                                ____________________

     

    Amended
and Restated Credit Agreement dated as of June __, 2008 among NEW EARTH LNG,
LLC, as Borrower, the other Loan Parties named therein, the financial
institutions party thereto from time to time, as Lenders, and FOURTH THIRD LLC,
as Agent

    

    Interests
Assigned:

    

    
      	
              Loan

            	
              Loan

            
	
              Assignor
      Amounts

            	
              $

            
	
              Amounts
      Assigned

            	
              $

            
	
              Assignee
      Amounts (post-assignment)

            	
              $

            

    

    

    

    Assignee
Information:

    
      	
              Address
      for Notices:

              ___________________________

              ___________________________

               

              Attention:                                _______________

              Telephone:                                _______________

              Telecopy:                      _______________

            	
              Address
      for Payments:

               

              Bank:                      _____________________

              ABA
      #:                      _____________________

              Account
      #:                                _____________________

              Reference:                                _____________________

               

               

            

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Exhibit
B

     

    Form of Compliance
Certificate

     

    Please
refer to the Amended and Restated Credit Agreement dated as of June __,
2008  (as amended, supplemented, restated or otherwise modified from
time to time, the “Credit Agreement”)
among the undersigned (“Borrower”), the other
Loan Parties named therein, the financial institutions party thereto and FOURTH
THIRD LLC, as Agent.  This certificate (this “Certificate”), together
with supporting calculations attached hereto, is delivered to Agent and Lenders
pursuant to the terms of the Credit Agreement.  Terms used but not
otherwise defined herein are used herein as defined in the Credit
Agreement.

     

    [Enclosed
herewith is a copy of the [annual audited/monthly] report of Borrower as at
________________ (the “Computation Date”),
which report fairly presents in all material respects the financial condition
and results of operations [(subject to the absence of footnotes and to normal
year-end adjustments)] of Borrower as of the Computation Date and has been
prepared in accordance with GAAP consistently applied.]

     

    Borrower
hereby certifies and warrants that the computations set forth on the schedule
attached hereto correspond to the ratios and/or financial restrictions contained
in the Credit Agreement and such computations are true and correct as at the
[Computation
Date].

     

    Borrower
further certifies that no Event of Default or Default has occurred and is
continuing.

     

    Borrower
has caused this Certificate to be executed and delivered by its officer
thereunto duly authorized on _____________.

     

    NEW EARTH
LNG, LLC

    

    By:                                                                         

    Title:                                                                         

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Schedule
to Compliance Certificate

    Dated as
of _________________

    

    

    A.           Section
7.14.1 – Minimum Fixed Charge Coverage Ratio

     

    1.           Consolidated
Net
Income                                                                             $________

     

    2.           Plus:                      Interest
Expense                                                              $________

    income tax
expense                                                                                      $________

    depreciation                                                                                                
 $________

    amortization                                                                                                 
$________

    management
fees                                                                                         $________

     

    3.           Total
(EBITDA)                                                                                         
    $________

     

    4.           Income
taxes paid/tax
distributions                                                            $________

     

    5.           Capital
Expenditures                                                                                      $________

     

    6.           Sum
of (4) and
(5)                                                                                           $________

     

    7.           Remainder
of (3) minus
(6)                                                                            $________

     

    8.           Interest
Expense accrued and payable in
cash                                          $________

     

    9.           Required
payments of principal of

     

    Debt (including The
Loan)                                                                          $________

     

    10.           Management
Fees                                                                                       
 $________

     

    11.           Sum
of (8), (9) and
(10)                                                                                  $________

     

    12.           Ratio
of (7) to
(11)                                                                                                ____
to 1

     

    13.           Minimum
Required                                                                                                ____
to 1

     

    B.           Section
7.14.2-Minimum EBITDA

     

    1.           EBITDA                                                                                             $________

    (from Item A(3) above)

     

    2.           Minimum
required                                                                                            $________

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Exhibit
C

     

    Form of
Note

     

    $__________________                                                                                                                     New
York, New York

     

    

    The
undersigned (“Borrower”), for value
received, promises to pay to the order of _____________ (“Lender”) at the
principal office of FOURTH THIRD LLC (the “Agent”) in New York
City, New York  the aggregate unpaid amount of the Loan made to
Borrower by Lender pursuant to the Credit Agreement referred to below, such
principal amount to be payable on the dates set forth in the Credit
Agreement.

     

    Borrower
further promises to pay interest on the unpaid principal amount of the Loan from
the date of such Loan until such Loan is Paid in Full, payable at the rate(s)
and at the time(s) set forth in the Credit Agreement.  Payments of
both principal and interest are to be made in lawful money of the United States
of America to the deposit account located in New York City and identified in the
Credit Agreement..

     

    This Note
evidences indebtedness incurred under, and is subject to the terms and
provisions of, the Amended and Restated Credit Agreement, dated as of June __,
2008 (as amended, supplemented, restated or otherwise modified from time to
time, the “Credit
Agreement”; terms not otherwise defined herein are used herein as defined
in the Credit Agreement), among Borrower, Earth Biofuels, Inc., a Delaware
corporation, the other Loan Parties named therein, the financial institutions
(including Lender) party thereto from time to time and Agent, to which Credit
Agreement reference is hereby made for a statement of the terms and provisions
under which this Note may or must be paid prior to its due date or its due date
accelerated.

     

    This Note
is made under and governed by the laws of the State of New York applicable to
contracts made and to be performed entirely within such State.

     

    NEW EARTH
LNG, LLC

    

    

    By:                                                                         

    Title:                                                                         

    

    

    

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Exhibit
D

     

    Form of Excess Cash Flow
Certificate

     

    Date:
_______________, 200_

     

    

    Please
refer to the Amended and Restated Credit Agreement dated as of June __, 2008 (as
amended, restated, supplemented or otherwise modified from time to time, the
"Credit Agreement") among the undersigned (together with its respective
successors and assigns, the "Borrower"), the other Loan Parties party thereto,
the financial institutions party thereto, as Lenders, and Fourth Third, LLC, as
Agent.  This certificate (this "Certificate"), together with
supporting calculations attached hereto, is delivered to Agent and Lenders
pursuant to the terms of the Credit Agreement.  Terms used but not
otherwise defined herein are used herein as defined in the Credit
Agreement.

     

    The
officer executing this Certificate is a chief financial officer of Borrower and
as such is duly authorized to execute and deliver this Certificate on behalf of
Borrower.  By executing this Certificate such officer hereby certifies
to Agent and Lenders that:

     

    (a)           set
forth on Schedule
1 attached hereto is a correct calculation of Excess Cash Flow for the
Fiscal Quarter period ended __________, _____ and a correct calculation of the
required prepayment of

     

    $__________________;

     

    (b)           Schedule 1 attached
hereto is based on the financial statements which [have been delivered to Agent
in accordance with Section 6.1.1 of the
Credit Agreement] [are attached hereto as Annex A].

     

    IN
WITNESS WHEREOF, Borrower has caused this Certificate to be executed by its
chief financial officer this _____ day of _______________, 200_.

     

    

    
      	
              NEW
      EARTH LNG, LLC

              By:                                                                           

              Title:                                                                           

            

    

    

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Schedule
1

     

    to

     

    Excess
Cash Flow Certificate

     

    Excess
Cash Flow is defined as follows:

     

    
      	
              EBITDA
      (from item A(3) of Exhibit B)

            	
              $___________

            
	
              Plus:              Any
      Net Decrease in Adjusted Working Capital

            	
              $___________

            
	
              Less:              Scheduled
      principal payments made with respect to the Loan and other Debt of
      Borrower and its Subsidiaries

            	
              $___________

            
	
              Voluntary
      principal payments made with respect to the Loan

            	
              $___________

            
	
              Federal,
      state, local and foreign income taxes paid in cash for
    taxes

            	
              $___________

            
	
              Interest
      Expense paid in cash

            	
              $___________

            
	
              Increase
      in Adjusted Working Capital

            	
              $___________

            
	
              Excess
      Cash Flow

            	
              $___________

            
	
              Prepayment
      percent

            	
              __________%                 

            
	
              Prepayment
      amount

            	
              $___________

            

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Decrease
(increase) in Adjusted Working Capital, for the purposes of the calculation of
Excess Cash Flow, means the following:

     

    
      	 
      	
              Beg.
      of Period

            	
              End
      of Period

            
	
              Consolidated
      current assets:

            	
              $__________

            	
              $__________

            
	
              Less:                      cash

            	
              ___________

            	
              ___________

            
	
              cash equivalents

            	
              ___________

            	
              ___________

            
	
              Adjusted
      current assets

            	
              $___________

            	
              $___________

            
	
              Consolidated
      current liabilities:

            	
              $___________

            	
              $___________

            
	
              Less:short-term
      Debt (including current portion of long-term Debt)

            	
              ___________

            	
              ___________

            
	
              Adjusted
      current liabilities

            	
              $__________

            	
              $__________

            
	
              Adjusted
      Working Capital (adjusted consolidated current assets minus adjusted
      consolidated current liabilities)

            	
              $__________

            	
              $__________

            
	
              Decrease
      (Increase) in Adjusted Working Capital (beginning of period minus end of
      period Adjusted Working Capital)

            	 
      	
              $__________exhibit10-2.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
 

    
      GUARANTEE
AND COLLATERAL AGREEMENT

       

      DATED AS
OF JUNE 26, 2008

       

      BY

       

      PNG
VENTURES, INC.

       

      NEW EARTH
LNG, INC.

       

      APPLIED
LNG TECHNOLOGIES USA, L.L.C.

       

      FLEET
STAR, INC.

       

      EARTH
LEASING, INC.

       

      AND

       

      ARIZONA
LNG, L.L.C.

       

      AS
GRANTORS,

       

      IN FAVOR
OF

       

      FOURTH
THIRD LLC,

       

      AS
AGENT

       

      

      
        
           

        

        
           

          
            

          

        

        
           

          
            TABLE
OF CONTENTS

            

            Page

             

            

          

        

      

      
        	
                Section
      1.

              	
                Definitions. 

              	
                 

              

      

       

      
        	
                 
      

              	
                1.01.

              	
                Definition
      of Terms Used Herein Generally. 

              	
                 

              

      

       

      
        	
                 
      

              	
                1.02.

              	
                Definition
      of Certain Terms Used Herein. 

              	
                 

              

      

       

      
        	
                 
      

              	
                1.03.

              	
                Rules
      of Interpretation 

              	
                 

              

      

       

      
        	
                Section
      2.

              	
                Guarantee 

              	
                 

              

      

       

      
        	
                 
      

              	
                2.01.

              	
                Guarantee 

              	
                 

              

      

       

      
        	
                 
      

              	
                2.02.

              	
                Right
      of Contribution 

              	
                 

              

      

       

      
        	
                 
      

              	
                2.03.

              	
                Subrogation 

              	
                 

              

      

       

      
        	
                 
      

              	
                2.04.

              	
                Amendments,
      etc. with respect to the Borrower Obligations 

              	
                 

              

      

       

      
        	
                 
      

              	
                2.05.

              	
                Guarantee
      Absolute and Unconditional 

              	
                 

              

      

       

      
        	
                 
      

              	
                2.06.

              	
                Reinstatement 

              	
                 

              

      

       

      
        	
                 
      

              	
                2.07.

              	
                Payments 

              	
                 

              

      

       

      
        	
                 
      

              	
                2.08.

              	
                Waiver
      of Subrogation 

              	
                 

              

      

       

      
        	
                Section
      3.

              	
                Grant
      of Security Interest 

              	
                 

              

      

       

      
        	
                Section
      4.

              	
                Authorization
      to File Financing Statements 

              	
                 

              

      

       

      
        	
                Section
      5.

              	
                Relation
      to Other Security Documents 

              	
                 

              

      

       

      
        	
                 
      

              	
                5.01.

              	
                Real
      Estate Documents 

              	
                 

              

      

       

      
        	
                 
      

              	
                5.02.

              	
                Patent
      and Trademark Security Agreement
  Supplements

              

      

       

      
        	
                Section
      6.

              	
                Representations
      and Warranties 

              	
                 

              

      

       

      
        	
                 
      

              	
                6.01.

              	
                Grantors’
      Legal Status. 

              	
                 

              

      

       

      
        	
                 
      

              	
                6.02.

              	
                Grantors’
      Legal Names. 

              	
                 

              

      

       

      
        	
                 
      

              	
                6.03.

              	
                Grantors’
      Locations. 

              	
                 

              

      

       

      
        	
                 
      

              	
                6.04.

              	
                Representations
      in the Credit
      Agreement. 

              	
                 

              

      

       

      
        	
                 
      

              	
                6.05.

              	
                Title
      to Collateral. 

              	
                 

              

      

       

      
        	
                 
      

              	
                6.06.

              	
                Nature
      of Collateral. 

              	
                 

              

      

       

      
        	
                 
      

              	
                6.07.

              	
                Compliance
      with Laws. 

              	
                 

              

      

       

      
        	
                 
      

              	
                6.08.

              	
                Validity
      of Security Interest. 

              	
                 

              

      

       

      
        	
                 
      

              	
                6.09.

              	
                Perfection
      Certificate; Intellectual Property Filings. 

              	
                 

              

      

       

      
        	
                 
      

              	
                6.10.

              	
                Investment
      Property 

              	
                 

              

      

       

      
        	
                 
      

              	
                6.11.

              	
                Receivables 

              	
                 

              

      

       

      
        	
                 
      

              	
                6.12.

              	
                Accounts 

              	
                 

              

      

       

      
        	
                 
      

              	
                6.13.

              	
                Equipment
      and Inventory 

              	
                 

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

          
            TABLE
OF CONTENTS

            (continued)

            Page

             

             

          

        

      

      
        	
                 

                  Section
      7.

                

              	
                 

                Covenants

              

      

       

      
        	
                 
      

              	
                7.01.

              	
                Grantors’
      Legal Status. 

              	
                 

              

      

       

      
        	
                 
      

              	
                7.02.

              	
                Grantors’
      Names. 

              	
                 

              

      

       

      
        	
                 
      

              	
                7.03.

              	
                Grantors’
      Organizational Numbers. 

              	
                 

              

      

       

      
        	
                 
      

              	
                7.04.

              	
                Locations. 

              	
                 

              

      

       

      
        	
                 
      

              	
                7.05.

              	
                Covenants
      in Credit
      Agreement 

              	
                 

              

      

       

      
        	
                 
      

              	
                7.06.

              	
                Promissory
      Notes and Tangible Chattel Paper. 

              	
                 

              

      

       

      
        	
                 
      

              	
                7.07.

              	
                Deposit
      Accounts. 

              	
                 

              

      

       

      
        	
                 
      

              	
                7.08.

              	
                Investment
      Property. 

              	
                 

              

      

       

      
        	
                 
      

              	
                7.09.

              	
                Collateral
      in the Possession of a Bailee. 

              	
                 

              

      

       

      
        	
                 
      

              	
                7.10.

              	
                Electronic
      Chattel Paper and Transferable Records. 

              	
                 

              

      

       

      
        	
                 
      

              	
                7.11.

              	
                Letter-of-Credit
      Rights. 

              	
                 

              

      

       

      
        	
                 
      

              	
                7.12.

              	
                Commercial
      Tort Claims 

              	
                 

              

      

       

      
        	
                 
      

              	
                7.13.

              	
                Intellectual
      Property. 

              	
                 

              

      

       

      
        	
                 
      

              	
                7.14.

              	
                Maintenance
      of Collateral; Compliance with Laws. 

              	
                 

              

      

       

      
        	
                 
      

              	
                7.15.

              	
                Dispositions
      of Collateral. 

              	
                 

              

      

       

      
        	
                 
      

              	
                7.16.

              	
                Maintenance
      of Insurance. 

              	
                 

              

      

       

      
        	
                 
      

              	
                7.17.

              	
                Periodic
      Certification. 

              	
                 

              

      

       

      
        	
                 
      

              	
                7.18.

              	
                Other
      Actions as to any and all Collateral. 

              	
                 

              

      

       

      
        	
                Section
      8.

              	
                Inspection
      and Verification 

              	
                 

              

      

       

      
        	
                Section
      9.

              	
                Collateral
      Protection Expenses; Preservation of Collateral. 

              	
                 

              

      

       

      
        	
                 
      

              	
                9.01.

              	
                Expenses
      Incurred by the Agent. 

              	
                 

              

      

       

      
        	
                 
      

              	
                9.02.

              	
                Agent’s
      Obligations and Duties. 

              	
                 

              

      

       

      
        	
                 
      

              	
                9.03.

              	
                Duties
      as to Pledged Securities. 

              	
                 

              

      

       

      
        	
                 
      

              	
                Section
      10.Securities
      and Deposits[INSERT PAGE
      NUMBER]

              

      

       

      
        	
                 
      

              	
                Section
      11.Notification
      to Account Debtors and Other Persons Obligated
      on

              

      

       

      
        	
                 
      

              	
                Collateral.[INSERT PAGE
      NUMBER]

              

      

       

      
        	
                 
      

              	
                Section
      12.Power
      of Attorney

              

      

       

      
        	
                 
      

              	
                12.01.Appointment
      and Powers of Agent.

              

      

       

      
        	
                 
      

              	
                12.02.Failure
      of Grantor to Perform.

              

      

       

      
        	
                 
      

              	
                12.03.Expenses
      of Attorney-in-Fact.

              

      

       

      
        	
                 
      

              	
                12.04.Ratification
      by Grantor.

              

      

       

      
        	
                 
      

              	
                12.05.No
      Duty on Agent.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

          
            TABLE
OF CONTENTS

            (continued)

            Page

             

             

          

        

      

      
        	
                 
      

              	
                Section
      13.Remedies.

              

      

       

      
        	
                 
      

              	
                13.01.Default

              

      

       

      
        	
                 
      

              	
                13.02.Remedies
      Upon Default

              

      

       

      
        	
                 
      

              	
                13.03.Grant
      of License to Use Intellectual
  Property

              

      

       

      
        	
                 
      

              	
                13.04.Waivers
      by Grantors

              

      

       

      
        	
                 
      

              	
                13.05.Application
      of Proceeds

              

      

       

      
        	
                 
      

              	
                13.06.Surplus,
      Deficiency

              

      

       

      
        	
                 
      

              	
                13.07.Information
      Related to the
Collateral

              

      

       

      
        	
                 
      

              	
                13.08.Sale
      Exempt from Registration

              

      

       

      
        	
                 
      

              	
                13.09.Rights
      and Remedies Cumulative

              

      

       

      
        	
                 
      

              	
                13.10.No
      Direct Enforcement by Secured
  Creditors

              

      

       

      
        	
                 
      

              	
                Section
      14.Standards
      for Exercising Remedies.

              

      

       

      
        	
                 
      

              	
                14.01.Commercially
      Reasonable Manner.

              

      

       

      
        	
                 
      

              	
                14.02.Standard
      of Care

              

      

       

      
        	
                 
      

              	
                Section
      15.Waivers
      by Grantor; Obligations
Absolute.

              

      

       

      
        	
                 
      

              	
                15.01.Specific
      Waivers.

              

      

       

      
        	
                 
      

              	
                15.02.Obligations
      Absolute.

              

      

       

      
        	
                 
      

              	
                Section
      16.Marshalling.

              

      

       

      
        	
                 
      

              	
                Section
      17.Interest.

              

      

       

      
        	
                 
      

              	
                Section
      18.Reinstatement.

              

      

       

      
        	
                 
      

              	
                Section
      19.Miscellaneous.

              

      

       

      
        	
                 
      

              	
                19.01.Notices

              

      

       

      
        	
                 
      

              	
                19.02.GOVERNING
      LAW; CONSENT TO
JURISDICTION

              

      

       

      
        	
                 
      

              	
                19.03.WAIVER
      OF JURY TRIAL, ETC.

              

      

       

      
        	
                 
      

              	
                19.04.Counterparts.

              

      

       

      
        	
                 
      

              	
                19.05.Headings.

              

      

       

      
        	
                 
      

              	
                19.06.No
      Strict Construction.

              

      

       

      
        	
                 
      

              	
                19.07.Severability.

              

      

       

      
        	
                 
      

              	
                19.08.Survival
      of Agreement.

              

      

       

      
        	
                 
      

              	
                19.09.Fees
      and Expenses;
Indemnification.

              

      

       

      
        	
                 
      

              	
                19.10.Binding
      Effect; Several
Agreement.

              

      

       

      
        	
                 
      

              	
                19.11.Waivers;
      Amendment

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

          
            TABLE
OF CONTENTS

            (continued)

            Page

             

             

          

        

      

      
        	
                 
      

              	
                19.12.Set-Off

              

      

       

      
        	
                 
      

              	
                19.13.Integration

              

      

       

      
        	
                 
      

              	
                19.14.Acknowledgments

              

      

       

      
        	
                 
      

              	
                19.15.Additional
      Grantors and Guarantors

              

      

       

      
        	
                 
      

              	
                19.16.Releases

              

      

       

      
        	
                 
      

              	
                19.17.Intercompany
      Debt.

              

      

       

      

       

      SCHEDULES

       

      7.07(a)                      Deposit
Accounts

      

      

      

      EXHIBITS

       

      A           Perfection
Certificate

      B           Form
of Copyright Security Agreement Supplement

      C           Form
of Patent Security Agreement Supplement

      D           Form
of Trademark Security Agreement Supplement

      E           Form
of Control Agreement (Deposit Accounts)

      F           Form
of Control Agreement (Uncertificated Securities)

      G           Form
of Control Agreement (Securities Accounts)

      H           Form
of Control Agreement (Commodities Contracts)

      I           Form
of Control Agreement (Letter-of-Credit Rights)

      

      

      ANNEXES

       

      1           Form
of Assumption Agreement

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      GUARANTEE
AND COLLATERAL AGREEMENT, dated as of June 26, 2008, by each of the signatories
hereto identified on the signature pages hereto as a grantor (together with any
other entity that may become a party hereto as a grantor as provided herein,
each a “Grantor” and
collectively, jointly and severally, the “Grantors”) in favor
of Fourth Third LLC as Collateral Agent (in such capacity, the “Agent”) for itself in
its capacity as the Agent and a Lender under the Credit Agreement (as
hereinafter defined) (the “Lender”), together
with the banks and other financial institutions or entities (collectively, the
“Lenders”) from
time to time party to the Amended and Restated Credit Agreement, dated as of
June __, 2008 (as amended, supplemented or otherwise modified from time to time,
the “Credit
Agreement”) among  New Earth LNG, Inc., a Delaware corporation
(“Borrower”),
the other Loan Parties named therein, the Lenders and the Agent, and the other
Secured Creditors (as hereinafter defined).

       

      W I T N E S S E T
H:

       

      WHEREAS,
pursuant to the Original Credit Agreement, the Lenders agreed to make extensions
of credit to Earth LNG, Inc., a Texas corporation (“Old E­arth”),   upon
the terms and conditions set forth therein; and

       

      WHEREAS,
in connection therewith, Old Earth,  the other Grantors (other than
PNG), and Agent made and entered into the Original Guarantee and Collateral
Agreement; and

       

      WHEREAS,
pursuant to the Original Durant Credit Agreement, the Lenders agreed to make
extensions of credit to Durant upon the terms and conditions set forth therein;
and

       

      WHEREAS,
in connection therewith, Durant, the Grantors (other than Borrower and PNG but
including Old Earth) and Agent made and entered into the Amended and Restated
Guarantee and Collateral Agreement; and

       

      WHEREAS,
effective as of the date hereof, (i) pursuant to the Drop Down, Old Earth has
transferred all, or substantially all,  of its assets to Borrower, and
Borrower has assumed the obligations of Old Erath under the Original Credit
Agreement and the Amended and Restated Guarantee and Collateral Agreement, and
(ii) pursuant to the Share Exchange, EBOF has ceased to be a shareholder of
Borrower, and PDF has become the sole shareholder of Borrower; and

       

      WHEREAS,
in connection therewith, the Grantors have made and entered into the Credit
Agreement, amending and restating, in its entirety, the Original Credit
Agreement, pursuant to which the Lenders have agreed to extend certain
additional credit to Borrower; and

       

      WHEREAS,
further in connection therewith, PNG has agreed to guarantee the Borrower
Obligations and to grant security interests to Agent in the capital stock of
Borrower, as security for its guarantee; and

       

      WHEREAS,
further in connection therewith, Old Earth, EBOF and Durant have been released
from their obligations as “Loan Parties” under the Original Credit Agreement,
and as “Guarantors” under the Amended and Restated Guarantee and Collateral
Agreement; and

       

      WHEREAS,
in substitution of the foregoing, EBOF and Durant, together with Agent, have
entered into the Durant Credit Agreement and the Durant Guarantee and Collateral
Agreement; and

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      WHEREAS,
it is a condition precedent to the obligations of the Lenders to make their
respective additional extensions of credit to Borrower under the Credit
Agreement that the Grantors shall have executed and delivered this Agreement to
the Agent; and

       

      WHEREAS,
in connection with the foregoing, the parties hereto have agreed to execute and
deliver this Agreement in substitution for the Amended and Restated Guarantee
and Collateral Agreement.

       

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

       

      Section
1.                      Definitions.

       

      1.01.           Definition of Terms Used
Herein Generally.  Except as otherwise provided herein, all
capitalized terms used herein (including in the preamble hereto) but not defined
herein shall have the meanings set forth in the Credit
Agreement.  Except as specifically provided herein, all terms used
herein and defined in the NYUCC shall have the same definitions herein as
specified therein as of the date hereof; provided, however, that if a
term is defined in Article 9 of the NYUCC differently than in another
Article of the NYUCC, the term has the meaning specified in Article 9 of
the NYUCC as of the date hereof.

       

      1.02.           Definition of Certain Terms
Used Herein.  As used herein, the following terms shall have
the following meanings:

       

      “After-Acquired Intellectual
Property”:  as defined in Section
7.13.

       

      “Agent”: as defined in
the preamble.

       

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

       

      “Amended and Restated
Guarantee and Collateral Agreement”:  the Amended and Restated
Guarantee and Collateral Agreement, dated March 23, 2007, among
EBOF, Durant, the Grantors (other PNG) and Agent, as amended, which amended
and restated the Original Guarantee and Collateral Agreement.

       

      “Borrower”:  as
defined in the preamble.  Any references herein to “Earth LNG” or to
“each,” “either” or “such” Borrower or to the “applicable” Borrower, or to the
“Borrowers” shall mean and refer to Borrower.

       

      “Borrower
Obligations”:  the Obligations (as defined in the Credit
Agreement).

       

      “Collateral”:  as
defined in Section
3.

       

      “Collateral Agent”
means Fourth Third LLC in its capacity as agent for the lenders under the Credit
Agreement and the other Secured Creditors.

       

      “Copyright
License”:  any written agreement, now or hereafter in effect,
granting any right to any third party under any Copyright now or hereafter owned
by any Grantor or that the Grantor otherwise has the right to license, or
granting any right to any Grantor under any

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Copyright
now or hereafter owned by any third party, and all rights of any Grantor under
any such agreement.

       

      “Copyright
Office”:  the United States Copyright Office.

       

      “Copyrights”:  (i)
all copyrights, whether or not the underlying works of authorship have been
published, and all works of authorship and other intellectual property rights
therein, all copyrights of works based on, incorporated in, derived from or
relating to works covered by such copyrights, all right, title and interest to
make and exploit all derivative works based on or adopted from works covered by
such copyrights, and all copyright registrations and copyright applications, and
any renewals or extensions thereof, including, without limitation, each
registration and application identified in Schedule 7(b) to
the Perfection Certificate, (ii) the rights to print, publish and distribute any
of the foregoing, (iii) the right to sue or otherwise recover for any and all
past, present and future infringements and misappropriations thereof, (iv) all
income, royalties, damages and other payments now and hereafter due and/or
payable with respect thereto (including, without limitation, payments under all
Copyright Licenses entered into in connection therewith, and damages and
payments for past, present or future infringements thereof), and (v) all
other rights of any kind whatsoever accruing thereunder or pertaining
thereto.

       

      “Copyright Security Agreement
Supplement”:  a supplement to this Agreement, executed by one
or more Grantors in favor of the Agent, substantially in the form of Exhibit B
hereto.

       

      “Credit
Agreement”:  as defined in the preamble.  Any
references herein to “each, “either” or “such” Credit Agreement, or the
“applicable” Credit Agreement, or to the “Credit Agreements” shall mean and
refer to this Agreement.

       

      “Disposition”:  with
respect to any Property, and except as otherwise provided in Sections 7.13(a)(x)
and 7.15, any
sale, lease, license, sale and leaseback, assignment, conveyance, transfer or
other disposition thereof, but not including the issuance of capital stock or
other equity interests by either Borrower; and the terms “Dispose” and “Disposed of” shall
have correlative meanings.

       

      “Durant”:  Durant Biofuels,
LLC, an Oklahoma limited liability company.

       

      “Durant Credit
Agreement”:  the Credit Agreement, dated on or about the
Closing Date, among EBOF, Durant, the “Lenders” so identified therein, and
Fourth Third LLC, as “Agent.”

       

      “Durant Guarantee and Collateral
Agreement”:  the Guarantee and Collateral Agreement, dated on
or about the Closing Date, made among EBOF, Durant, and Fourth Third LLC, as
Agent.

       

      “EBOF”:  Earth
Biofuels, Inc., a Delaware corporation.

       

      “Event”:  as
defined in Section 9.03
hereof.

       

      “Event of
Default”:  as defined in either Credit Agreement.

       

      “Excluded
Assets”:  collectively (a) any General Intangible to the extent
that (i) the terms of the agreement between the applicable Grantor and the
account debtor or other contract party with respect to such General Intangible
prohibits, restricts or requires the consent of the account

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      debtor
to, the assignment or transfer of, or creation, attachment or perfection of a
security interest in, such General Intangible, or provides that the assignment
or transfer or creation, attachment or perfection of such security interest may
give rise to a default, breach, right of recoupment, claim, defense,
termination, right of termination or remedy and (ii) such terms are effective
under Sections 9-406, 9-407 or 9-408 of the NYUCC, (b) any property that is
subject to a Lien permitted under Section 7.2 of the
Credit Agreement pursuant to documents that prohibit the applicable Grantor from
granting other liens in such property, (c) all property or proceeds thereof now
owned or hereafter acquired by PNG, other than all capital stock of
Borrower  now owned or hereafter acquired by PNG, and all Proceeds and
products of any and all such property and all collateral security and guarantees
given by any Person with respect to any of such property.

       

      “Excluded Foreign Subsidiary
Voting Stock”:  the voting capital stock or other equity
interests of any Foreign Subsidiary owned by either Borrower or a Domestic
Subsidiary thereof.

       

      “Fully
Satisfied”:  with respect to the Secured Obligations, Guarantor
Obligations or Borrower Obligations, as the case may be, at any time that (a)
all principal constituting Secured Obligations, Guarantor Obligations or
Borrower Obligations, as the case may be, and all interest (including interest
that shall have accrued after the commencement of a bankruptcy proceeding with
respect to either Borrower or any Guarantor at the rate provided in the Loan
Documents) accrued to such time on such principal and on all other Secured
Obligations, Guarantor Obligations or Borrower Obligations, as the case may be,
shall have been paid in full in cash, (b) all fees, expenses and other amounts
(including contingent obligations, including those in respect of indemnification
provisions contained in the Loan Documents, but excluding obligations in respect
of such indemnification provisions for which no claim has been made and for
which no notice of claim has been given) unpaid as of such time which constitute
Secured Obligations, Guarantor Obligations or Borrower Obligations, as the case
may be, shall have been paid in full in cash, and (c) the Commitments shall have
expired or been terminated.

       

      “General
Intangibles”:  all “general intangibles” as such term is
defined in Section 9-102(42) of the NYUCC as in effect on the date hereof and,
in any event, including, without limitation, with respect to any Grantor, all
contracts, agreements, instruments and indentures and all licenses and permits
issued by Governmental Authorities in any form, and portions thereof, to which
such Grantor is a party or under which such Grantor has any right, title or
interest or to which such Grantor or any property of such Grantor is subject, as
the same may from time to time be amended, supplemented, replaced or otherwise
modified, including, without limitation, (i) all rights of such Grantor to
receive moneys due and to become due to it thereunder or in connection
therewith, (ii) all rights of such Grantor to receive proceeds of any insurance,
indemnity, warranty or guaranty with respect thereto, (iii) all rights of such
Grantor to damages arising thereunder, (iv) all rights of such Grantor to
receive any tax refunds, and (v) all rights of such Grantor to terminate and to
perform, compel performance and to exercise all remedies
thereunder.

       

      “Grantor”: as defined
in the preamble.

       

      “Guarantor
Obligations”:  with respect to any Guarantor, all obligations
and liabilities of such Guarantor which may arise under or in connection with
this Agreement (including, without limitation, Section 2) or any
other Loan Document to which such Guarantor is a party, in each case whether on
account of guarantee obligations, reimbursement obligations, fees, indemnities,
costs, expenses or otherwise (including, without limitation, all fees and
disbursements of counsel

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      to any
Secured Creditor that are required to be paid by such Guarantor pursuant to the
terms of this Agreement or any other Loan Document).

       

      “Guarantor
Payment”:  as defined in Section
2.11(a).

       

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

       

      “Intellectual
Property”:  all intellectual and similar property of any
Grantor of every kind and nature now owned or hereafter acquired by any Grantor,
including (i) all inventions, designs, Patents, Patent Licenses,
Trademarks, Trademark Licenses, Copyrights, Copyright Licenses, Trade Secrets,
designs, confidential or proprietary technical and business information, know
how, show how or other data or information, software and databases and all
embodiments or fixations thereof and related documentation, registrations and
franchises, licenses for any of the foregoing and all license rights and all
additions, improvements and accessions to, and books and records describing or
used in connection therewith, (ii)  all computer software and software
systems (including, without limitation, data, databases and related
documentation), and (iii) all Internet web sites and domain
names.

       

      “Intellectual Property
Security Agreement”:  each of a Copyright Security Agreement
Supplement, a Patent Security Agreement Supplement and a Trademark Security
Agreement Supplement.

       

      “Intercompany
Debt”:  as defined in Section
19.17.

       

      “Intercompany
Note”:  any promissory note evidencing loans made by any
Grantor to any of its Subsidiaries or any loan made by any Grantor to another
Grantor.

       

      “Investment
Property”:  the collective reference to (i) all “investment
property” as such term is defined in Section 9-102(48) of the NYUCC on the date
hereof including, without limitation, all certificated securities and
uncertificated securities, all security entitlements, all securities accounts,
all commodity contracts and all commodity accounts (other than any Excluded
Foreign Subsidiary Voting Stock excluded from the definition of “Pledged
Stock”), (ii) security entitlements, in the case of any United States Treasury
book-entry securities, as defined in 31 C.F.R. section 357.2, or, in the
case of any United States federal agency book-entry securities, as defined in
the corresponding United States federal regulations governing such book-entry
securities, and (iii) whether or not constituting “investment property” as so
defined, all Pledged Notes, all Pledged Stock, all Pledged Security Entitlements
and all Pledged Commodity Contracts.

       

      “Issuers”:  the
collective reference to each issuer of a Pledged Security.

       

      “Lease”:  any
lease of personal property under which any Grantor is the lessee.

       

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

       

      “Original Durant Credit
Agreement”:  as defined in the Durant Credit
Agreement.

       

      “Original Guarantee and
Collateral Agreement”:  the Guarantee and Collateral Agreement,
dated February 28, 2007, among EBOF, the Grantors (other than PNG and
Durant)

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      and
Agent, as amended, including pursuant to the Amended and Restated Guarantee and
Collateral Agreement.

       

      “Patent
License”:  any written agreement, now or hereafter in effect,
granting to any third party any right to make, use or sell any invention on
which a Patent, now or hereafter owned by any Grantor or that any Grantor
otherwise has the right to license, is in existence, or granting to any Grantor
any right to make, use or sell any invention on which a Patent, now or hereafter
owned by any third party, is in existence, and all rights of any Grantor under
any such agreement.

       

      “Patents”:  all
of the following now owned or hereafter acquired by any
Grantor:  (a) all letters patent of the United States or any
other country, all registrations and recordings thereof, and all pending
applications for letters patent of the United States or any other country,
including registrations, recordings and applications in the PTO or in any
similar office or agency of the United States, any State or Territory thereof,
or any other country, including those identified in Schedule 7(a) to
the Perfection Certificate, and (b) all reissues, continuations, divisions,
continuations-in-part, renewals or extensions thereof and the inventions
disclosed or claimed therein, including the right to make, use and/or sell
inventions disclosed or claimed therein.

       

      “Patent Security Agreement
Supplement”:  a supplement to this Agreement, executed by one
or more Grantors in favor of Collateral Agent, substantially in the form of
Exhibit C
hereto.

       

      “Perfection
Certificate”:  shall mean a certificate substantially in the
form of Exhibit A
hereto, completed and supplemented with the schedules and attachments
contemplated thereby, and duly executed by the Grantors, either pursuant hereto
or, if applicable, pursuant to the Original Guarantee and Collateral Agreement
or the Amended Guarantee and Collateral Agreement.

       

      “Perfection
Supplement”:  shall have the meaning assigned to such term in
Section 7.17.

       

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

       

      “Pledged Commodity
Contracts”:  all commodity contracts listed in Section 8 of the
Perfection Certificate, and all other commodity contracts to which any Grantor
is party from time to time.

       

      “Pledged Debt
Securities”:  the debt securities listed in Section 9 of the
Perfection Certificate, together with any other certificates, options, rights or
security entitlements of any nature whatsoever in respect of the debt securities
of any Person that may be issued or granted to, or held by, any Grantor while
this Agreement is in effect.

       

      “Pledged
Notes”:  all promissory notes listed in Section 9 of the
Perfection Certificate, 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 in an aggregate principal amount for all Grantors not to exceed
$250,000 at any time outstanding issued in connection with extensions of trade
credit by any Grantor in the ordinary course of business).

       

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

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      “Pledged Security
Entitlements”:  all security entitlements with respect to the
financial assets listed on Section 8 of the
Perfection Certificate and all other security entitlements of any
Grantor.

       

      “Pledged
Stock”:  the shares of capital stock or other equity interests
owned at any time or from time to time by any Grantor in any other Grantor,
including, without limitation, (i) in the case of PNG, all shares of capital
stock of Borrower, including all than Shares acquired by it pursuant to the
Share Exchange Agreement, and (ii) in the case of Borrower, all shares of
capital stock, or membership interests, as applicable, in all Grantors that are
Subsidiaries of Borrower, together with any other shares, stock certificates,
options, rights or security entitlements of any nature whatsoever in respect of
the capital stock or other equity interests 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 voting capital
stock of any Foreign Subsidiary be required to be pledged hereunder or any
capital stock of any Foreign Subsidiary owned by a Foreign Subsidiary be
required to be pledged hereunder; provided, further, that in no event shall
capital stock or other equity interests of any Subsidiary of Parent that is not
a Loan Party be required to be pledged hereunder.

       

      “PNG”:  PNG
Resources, Inc., a Nevada corporation.

       

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

       

      “Property”:  any
right or interest in or to property of any kind whatsoever, whether real,
personal or mixed and whether tangible or intangible, including capital stock or
other equity interests.

       

      “PTO”:  the
United States Patent and Trademark Office.

       

      “Receivable”:  any
right to payment on account of any obligation that could create any right to
receive money, 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 or payment intangible).

       

                 “Secured
Creditor”:  collectively, the Collateral Agent, Fourth Third
LLC as administrative agent under the Credit Agreement and the Lenders under and
as defined in the Credit Agreement.

       

      “Secured
Obligations”:  the Borrower Obligations and the Guarantor
Obligations.

       

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

       

      “Security
Documents”:  this Agreement, the Intellectual Property Security
Agreements, all deposit account control agreements and similar agreements, all
landlord waivers, bailee letters and similar documents and all other pledge or
security agreements, “Mortgages” (as such term is defined in the Credit
Agreement), assignments or other similar agreements or instruments executed and
delivered by any Grantor pursuant to Section 6.8 or
Section
6.9 of the
Credit

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Agreement
or otherwise in connection with the transactions contemplated thereby, in each
case as amended, modified, restated or supplemented from time to
time.

       

      “Security
Interest”:  the security interest granted pursuant to Section 3, as well as
all other security interests created or assigned as additional security for the
Secured Obligations pursuant to the provisions of this Agreement.

       

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

       

      “Trade Secret
License”:  any agreement, whether written or oral, providing
for the grant by or to any Grantor of any right to use any Trade Secret,
including, without limitation, any of the foregoing referred to on Schedule 7(a) to
the Perfection Certificate.

       

      “Trade
Secrets”:  (i) all trade secrets and all confidential and
proprietary information, including know-how, trade secrets, manufacturing and
production processes and techniques, inventions, research and development
information, technical data, financial, marketing and business data, pricing and
cost information, business and marketing plans, and customer and supplier lists
and information, including, without limitation, those identified in Schedule 7(a) to
the Perfection Certificate, (ii) the right to sue or otherwise recover for any
and all past, present and future infringements and misappropriations thereof,
(iii) all income, royalties, damages and other payments now and hereafter due
and/or payable with respect thereto (including, without limitation, payments
under all licenses entered into in connection therewith, and damages and
payments for past, present or future infringements thereof), and (iv) all other
rights of any kind whatsoever of such Grantor accruing thereunder or pertaining
thereto.

       

      “Trademark
License”:  any written agreement, now or hereafter in effect,
granting to any third party any right to use any Trademark now or hereafter
owned by any Grantor or that any Grantor otherwise has the right to license, or
granting to any Grantor any right to use any Trademark now or hereafter owned by
any third party, and all rights of any Grantor under any such
agreement.

       

      “Trademark Security Agreement
Supplement”:  a supplement to this Agreement, executed by the
Grantor in favor ofAgent , substantially in the form of Exhibit D
hereto.

       

      “Trademarks”:  (i)
all trademarks, service marks, trade names, corporate names, company names,
business names, domain names, trade dress, trade styles, logos, or other indicia
of origin or source identification, trademark and service mark registrations,
and applications for trademark or service mark registrations and any renewals
thereof, including, without limitation, those identified in Schedule 7(a) to
the Perfection Certificate, (ii) the right to sue or otherwise recover for
any and all past, present and future infringements and misappropriations
thereof, (iii) all income, royalties, damages and other payments now and
hereafter due and/or payable with respect thereto (including, without
limitation, payments under all Trademark Licenses entered into in connection
therewith, and damages and payments for past, present or future infringements
thereof), and (iv) all other rights of any kind whatsoever accruing
thereunder or pertaining thereto, together in each case with the goodwill of the
business connected with the use of, and symbolized by, each of the
above.

       

      “UCC”:  the
Uniform Commercial Code as in effect in any jurisdiction (except as otherwise
contemplated in Section 7.18).  References
to particular sections of Article 9 of the

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      UCC shall
be, unless otherwise indicated, references to Revised Article 9 of the UCC
adopted and effective in certain jurisdictions on or after July 1,
2001.

       

      1.03.           Rules of
Interpretation.  The rules of interpretation specified in Section 1.03 of
Credit Agreement shall be applicable to this Agreement.  References to
“Sections”, “Exhibits” and “Schedules” shall be to Sections, Exhibits and
Schedules, respectively, of this Agreement unless otherwise specifically
provided.  Any of the terms defined in this Section 1 may,
unless the context otherwise requires, be used in the singular or the plural
depending on the reference.  All references to statutes and related
regulations shall include (unless otherwise specifically provided herein) any
amendments of same and any successor statutes and regulations.

       

      Section
2.                      Guarantee

       

      2.01.           Guarantee.  i)                                Each
of the Guarantors hereby, jointly and severally, unconditionally and
irrevocably, guarantees to the Agent, for the ratable benefit of the Secured
Creditors and their respective successors, indorsees, transferees and assigns,
the prompt and complete payment and performance by 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, state and other laws relating to the insolvency of
debtors (after giving effect to the right of contribution established in Section
2.02).

       

      (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 Creditor
hereunder.

       

      (d)           The
guarantee contained in this Section 2 shall
remain in full force and effect until all the Borrower Obligations and Guarantor
Obligations shall have been Fully Satisfied notwithstanding that from time to
time during the term of the Credit Agreement Borrower may be free from any
Borrower Obligations.

       

      (e)           No
payment made by either Borrower, any of the Guarantors, any other guarantor or
any other Person or received or collected by any Secured Creditor from either
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
Secured Obligations or any payment received or collected from such Guarantor in
respect of the Secured Obligations), remain liable for the Borrower Obligations
up to the maximum liability of such Guarantor hereunder until the Borrower
Obligations are Fully Satisfied.

       

      2.02.           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
at least its proportionate share of such payment.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Each
Guarantor’s right of contribution shall be subject to the terms and conditions
of Section
2.03.  The provisions of this Section 2.02 shall in
no respect limit the obligations and liabilities of any Guarantor to the Secured
Creditors and each Guarantor shall remain liable to the Secured Creditors for
the full amount guaranteed by such Guarantor hereunder.

       

      2.03.           Subrogation.  Notwithstanding
any payment made by any Guarantor hereunder or any set-off or application of
funds of any Guarantor by any Secured Creditor, (i) no Guarantor shall be
entitled to be subrogated to any of the rights of any Secured Creditor against
Borrower or any other Guarantor or Grantor or any collateral security or
guarantee or right of offset held by any Secured Creditor for the payment of the
Borrower Obligations, (ii) no Guarantor shall seek or be entitled to seek any
contribution or reimbursement from either Borrower or any other Guarantor or
Grantor in respect of payments made by such Guarantor hereunder, and (iii) each
Guarantor hereby expressly and irrevocably waives any and all rights at law or
in equity to subrogation, reimbursement, exoneration, contribution,
indemnification or set off and any and all defenses available to a surety,
guarantor or accommodation co-obligor, in each case, until all Borrower
Obligations are Fully Satisfied.  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 Fully Satisfied, such amount shall be
held by such Guarantor in trust for the Secured Creditors, segregated from other
funds of such Guarantor, and shall, forthwith upon receipt by such Guarantor, be
turned over to the Agent in the exact form received by such Guarantor (duly
endorsed by such Guarantor to the Agent, if required), to be applied against the
Borrower Obligations, whether matured or unmatured, in such order as the Agent
may determine.  Each Guarantor acknowledges and agrees that this
waiver is intended to benefit the Secured Creditors and shall not limit or
otherwise affect such Guarantor’s liability hereunder or the enforceability of
this Section
2.03, and that the Secured Creditors and their respective successors and
assigns are intended third party beneficiaries of the waivers and agreements set
forth in this Section
2.03, and their rights under this Section 2.03, shall
survive payment in full of the Obligations.

       

      2.04.           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 Creditor may be rescinded by such Secured Creditor 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 Creditor, and the
Credit Agreement and the other Loan Documents and any other documents executed
and delivered in connection therewith may be amended, modified, supplemented or
terminated, in whole or in part, as the Agent (or the Required Lenders under the
Credit Agreement 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 any Secured Creditor for the payment of the Borrower Obligations
may be sold, exchanged, waived, surrendered or released.  No Secured
Creditor shall have any obligation to protect, secure, perfect 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.

       

      2.05.           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 Creditor 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 either Borrower and any of the Guarantors, on the one hand, and
the Secured Creditors, 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.  Each Guarantor waives diligence, presentment, protest,
demand for payment and notice of default or nonpayment to or upon either
Borrower or any of the Guarantors with respect to the Borrower Obligations,
except as required pursuant to the Credit Agreement.  Each Guarantor
understands and agrees that the guarantee contained in this Section 2 shall be
construed as a continuing, absolute and unconditional guarantee of payment and
performance without regard to (a) the validity or enforceability of the Credit
Agreement or any other Loan Document (other than this Agreement), 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 Creditor, (b) any defense, set-off or counterclaim (other than a
defense of payment or performance hereunder) which may at any time be available
to or be asserted by either Borrower or any other Person against any Secured
Creditor, or (c) any other circumstance whatsoever (with or without notice to or
knowledge of Borrower or such Guarantor) which constitutes, or might be
construed to constitute, an equitable or legal discharge of 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 Creditor 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
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 Creditor to make any such
demand, to pursue such other rights or remedies or to collect any payments from
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 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 Creditor against any Guarantor.  For the
purposes hereof, “demand” shall include
the commencement and continuance of any legal proceedings.

       

      2.06.           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 Creditor upon the
insolvency, bankruptcy, dissolution, liquidation or reorganization of either
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,
either Borrower or any Guarantor or any substantial part of its property, or
otherwise, all as though such payments had not been made.

       

      2.07.           Payments.  Each
Guarantor hereby guarantees that payments hereunder will be paid to the Agent
without set-off or counterclaim in Dollars in immediately available funds to the
deposit account of Agent specified in Annex II to the applicable Credit
Agreement and that all such payments will be subject to the provisions of Section 2.8 of the
applicable Credit Agreement.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      2.08.           Waiver of
Subrogation.  Notwithstanding anything to the contrary in this
Agreement or in any other Loan Document, and except as set forth in Section 2.11, each
Guarantor hereby expressly and irrevocably waives until all Secured Obligations
have been paid in full and the Commitments have been terminated pursuant to the
Credit Agreement any and all rights at law or in equity to subrogation,
reimbursement, exoneration, contribution, indemnification or set off and any and
all defenses available to a surety, guarantor or accommodation
co-obligor.  Each Guarantor acknowledges and agrees that this waiver
is intended to benefit the Secured Creditors and shall not limit or otherwise
affect such Guarantor’s liability hereunder or the enforceability of this Section 2.08, and
that the Secured Creditors and their respective successors and assigns are
intended third party beneficiaries of the waivers and agreements set forth in
this Section
2.08, and their rights under this Section 2.08, shall
survive payment in full of the Obligations.  The foregoing waiver
shall not be deemed to limit or prohibit the payment of indebtedness or other
obligations of any Guarantor to any other Guarantor or other Person which is
incurred in the ordinary course of business and which is otherwise permitted
under this Agreement or any other Loan Document.

       

      2.09.           Election of
Remedies.  If any Secured Creditor may, under applicable law,
proceed to realize its benefits under any of the Loan Documents giving such
Secured Creditor a Lien upon any Collateral, whether owned by any Guarantor or
by any other Person, either by judicial foreclosure or by non judicial sale or
enforcement, such Secured Creditor may, at its sole option, determine which of
its remedies or rights it may pursue without affecting any of its rights and
remedies under this Section
2.  If, in the exercise of any of its rights and remedies, any
Secured Creditor shall forfeit any of its rights or remedies, including its
right to enter a deficiency judgment against any Guarantor or any other Person,
whether because of any applicable laws pertaining to “election of remedies” or
the like, each Guarantor hereby consents to such action by such Secured Creditor
and waives, to the extent permitted by applicable law, any claim based upon such
action, even if such action by such Secured Creditor shall result in a full or
partial loss of any rights of subrogation that each Guarantor might otherwise
have had but for such action by such Secured Creditor.  Any election
of remedies that results in the denial or impairment of the right of any Secured
Creditor to seek a deficiency judgment against any Guarantor shall not impair
any other Guarantor’s obligation to pay the full amount of the
Obligations.  In the event any Secured Creditor shall bid at any
foreclosure or trustee’s sale or at any private sale permitted by law or the
Loan Documents, such Secured Creditor may bid all or less than the amount of the
Obligations and the amount of such bid need not be paid by the such Secured
Creditor but shall be credited against the Obligations.  The amount of
the successful bid at any such public sale, whether such Secured Creditor or any
other party is the successful bidder, shall be conclusively deemed to be the
fair market value of the Collateral and the difference between such bid amount
and the remaining balance of the Obligations shall be conclusively deemed to be
the amount of the Obligations guaranteed under this Section 2,
notwithstanding that any present or future law or court decision or ruling may
have the effect of reducing the amount of any deficiency claim to which any
Secured Creditor might otherwise be entitled but for such bidding at any such
sale.

       

      2.10.           Limitation.  Notwithstanding
any provision herein contained to the contrary, each Guarantor’s liability under
this Section 2
(which liability is in any event in addition to amounts for which such Guarantor
is primarily liable under Section 2 of the
Credit Agreement) shall be limited to an amount not to exceed as of any date of
determination the greater of:

       

      (a)           the
net amount of any portion of the Loan advanced to any other Grantor and then
re-loaned or otherwise transferred to, or for the benefit of, such Guarantor;
and

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (b)           the
amount that could be claimed by the Agent and the Lenders from such Guarantor
under this Section
2.10 without rendering such claim voidable or avoidable under Section 548
of Chapter 11 of the Bankruptcy Code or under any applicable state Uniform
Fraudulent Transfer Act, Uniform Fraudulent Conveyance Act or similar statute or
common law after taking into account, among other things, such Guarantor’s right
of contribution and indemnification from each other Guarantor under Section
2.11.

       

      2.11.           Contribution with Respect to
Guaranty Obligations.

       

      (a)           To
the extent that any Guarantor shall make a payment under this Section 2.11 of all
or any of the Obligations which it has agreed to guarantee pursuant hereto (a
“Guarantor
Payment”) that, taking into account all other Guarantor Payments then
previously or concurrently made by any other Guarantor, exceeds the amount that
such Guarantor would otherwise have paid if each Guarantor had paid the
aggregate Obligations satisfied by such Guarantor Payment in the same proportion
that such Guarantor’s “Allocable Amount” (as
defined below) (as determined immediately prior to such Guarantor Payment) bore
to the aggregate Allocable Amounts of each of the Guarantors as determined
immediately prior to the making of such Guarantor Payment, then, following
indefeasible payment in full in cash of the Obligations and termination of the
Commitments, such Guarantor shall be entitled to receive contribution and
indemnification payments from, and be reimbursed by, each other Guarantor for
the amount of such excess, pro rata based upon their respective Allocable
Amounts in effect immediately prior to such Guarantor Payment.

       

      (b)           As
of any date of determination, the “Allocable Amount” of
any Guarantor shall be equal to the maximum amount of the claim that could then
be recovered from such Guarantor under this Section 2 without
rendering such claim voidable or avoidable under Section 548 of Chapter 11 of
the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer
Act, Uniform Fraudulent Conveyance Act or similar statute or common
law.

       

      (c)           This
Section 2.11 is
intended only to define the relative rights of Guarantors and nothing set forth
in this Section
2.11 is intended to or shall impair the obligations of Guarantors,
jointly and severally, to pay any amounts as and when the same shall become due
and payable in accordance with the terms of this Agreement, including Section
2.1.  Nothing contained in this Section 2.11 shall
limit the liability of Borrower to pay the Loan and accrued interest, fees and
expenses with respect thereto for which such Borrower shall be primarily
liable.

       

      (d)           The
parties hereto acknowledge that the rights of contribution and indemnification
hereunder shall constitute assets of the Guarantor to which such contribution
and indemnification is owing.

       

      (e)           The
rights of the indemnifying Guarantors against other Loan Parties under this
Section 2.11
shall be exercisable upon the full and indefeasible payment of the Obligations
and the termination of the Commitments.

       

      Section
3.                      Grant
of Security Interest.

       

      Each
Grantor hereby grants (and confirms the grant, if any, which shall continue
uninterrupted, made by such Grantor in the Original Guarantee and Collateral
Agreement and the Amended and Restated Guarantee and Collateral Agreement) to
the Agent, for the ratable benefit of the Secured Creditors, a security interest
in and mortgage on, 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 the Secured
Obligations:

       

      a.           all
accounts, including health-care receivables;

       

      b.           all
chattel paper, whether tangible or electronic;

       

      c.           all
goods;

       

      d.           all
documents;

       

      e.           all
equipment;

       

      f.           all
fixtures;

       

      g.           all
general intangibles, including all payment intangibles;

       

      h.           all
instruments;

       

      i.           all
Intellectual Property;

       

      j.           all
inventory;

       

      k.           all
Investment Property;

       

      l.           all
Leases;

       

      m.           all
letter-of-credit rights;

       

      n.           all
money;

       

      o.           all
supporting obligations;

       

      p.           all
tort claims;

       

      q.           all
other property not otherwise described above;

       

      r.           all
deposit accounts, all claims now or hereafter arising therefrom, all funds now
or hereafter held therein, all amounts now or hereafter credited thereto and all
certificates and instruments, if any, from time to time representing or
evidencing such bank accounts;

       

      s.           all
books and records pertaining to the Collateral; and

       

      t.           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.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Notwithstanding
the foregoing, none of the Excluded Assets shall, to the extent and for so long
as they are Excluded Assets, constitute Collateral.  If at any time,
by reason of any change in law or the receipt of any required consent or
otherwise, any General Intangible that was an Excluded Asset ceases to meet the
conditions set forth in the definition of “Excluded Assets” found in Section 1 of this
Agreement, then such general intangible shall immediately and automatically
cease to be an Excluded Asset and the security interest herein granted shall
immediately and automatically attach thereto without necessity of any further
act or deed by any Grantor.

       

      Section
4.                      Authorization
to File Financing Statements.  Each Grantor hereby irrevocably
authorizes the Agent at any time and from time to time to file in any
jurisdiction in which the UCC has been adopted any initial financing statements
and amendments thereto that (a) indicate the Collateral (i) except as
to PNG, as “all assets” of such Grantor or words of similar effect, regardless
of whether any particular asset comprised in the Collateral falls within the
scope of Article 9 of the NYUCC or such jurisdiction, or (ii) as being
of an equal or lesser scope or with greater detail, and (b) contain any
other information required by part 5 of Article 9 of the UCC for the
sufficiency or filing office acceptance of any initial financing statement or
amendment, including (i) whether such Grantor is an organization, the type
of organization and any organization identification number issued to such
Grantor and, (ii) in the case of a financing statement filed as a fixture
filing or indicating Collateral as timber to be cut or as-extracted collateral,
a sufficient description of real property to which such Collateral
relates.  Each Grantor agrees to furnish any such information to the
Agent promptly upon request.  Each Grantor also ratifies its
authorization for the Agent to have filed in any UCC jurisdiction any like
initial financing statements or amendments thereto if filed prior to the date
hereof.

       

      Section
5.                      Relation
to Other Security Documents.

       

      5.01.           Real Estate
Documents.  The provisions of this Agreement supplement the
provisions of any real estate mortgage or deed of trust granted by any Grantor
to the Agent and securing the payment or performance of any of the Secured
Obligations.  Nothing contained in any such real estate mortgage or
deed of trust shall derogate from any of the rights or remedies of the Agent or
any Secured Creditor hereunder.

       

      5.02.           Patent and Trademark
Security Agreement Supplements.  Concurrently herewith certain
of the Grantors are executing and delivering to the Agent for recording in the
PTO or the Copyright Office, as applicable, the Patent Security Agreement
Supplement, the Trademark Security Agreement Supplement and the Copyright
Security Agreement Supplement.  The provisions of any current or any
future Patent Security Agreement Supplement, Trademark Security Agreement
Supplement or Copyright Security Agreement Supplement are supplemental to the
provisions of this Agreement.  Nothing contained in any current or
future Patent Security Agreement Supplement, Trademark Security Agreement
Supplement or Copyright Security Agreement Supplement shall derogate from any of
the rights or remedies of any Secured Creditor hereunder, nor shall anything
contained in any such current or future Patent Security Agreement Supplement,
Trademark Security Agreement Supplement or Copyright Security Agreement
Supplement be deemed to prevent or extend the time of attachment or perfection
of any Security Interest in such Collateral created hereby.

       

      Section
6.                      Representations and
Warranties.  To induce the 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, each Grantor hereby represents and warrants to the
Secured Creditors that:

       

      6.01.           Grantors’ Legal
Status.  (a) Such Grantor is an organization as set forth
in the Perfection Certificate; (b) such organization is of the type, and is
organized in the jurisdiction, set forth in the Perfection Certificate; and
(c) the Perfection Certificate sets forth such Grantor’s correct
organizational identification number or states that such Grantor has
none.

       

      6.02.           Grantors’ Legal
Names.  Such Grantor’s exact legal name is that set forth on
the Perfection Certificate and on the signature page hereof.

       

      6.03.           Grantors’ Locations.
The Perfection Certificate sets forth such Grantor’s place of business or (if it
has more than one place of business) its chief executive office, as well as its
mailing address if different.  Such Grantor’s place of business or (if
it has more than one place of business) its chief executive office (if such
Grantor is an organization) is located in a jurisdiction that has adopted the
UCC or whose laws generally require that information concerning the existence of
nonpossessory security interests be made generally available in a filing,
recording or registration system as a condition or result of the security
interest obtaining priority over the rights of a lien creditor with respect to
the collateral.

       

      6.04.           Representations in the
Credit Agreement.  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 the Secured
Creditors 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 applicable Borrower’s knowledge shall, for the purposes of this
Section 6.04,
be deemed to be a reference to such Grantor’s knowledge.

       

      6.05.           Title to Collateral.
The Collateral of such Grantor is owned by such Grantor free and clear of any
Lien, except for Liens expressly permitted pursuant to the Credit
Agreement.  Such Grantor has not filed or consented to the filing of
(a) any financing statement or analogous document under the UCC or any other
applicable laws covering any of its Collateral, (b) any assignment in which such
Grantor assigns any Collateral or any security agreement or similar instrument
covering any Collateral with the PTO or the Copyright Office or (c) any
assignment in which such Grantor assigns any Collateral or any security
agreement or similar instrument covering any Collateral with any foreign
governmental, municipal or other office, which financing statement or analogous
document, assignment, security agreement or similar instrument is still in
effect, except, in each case, with respect to Liens expressly permitted pursuant
to the Credit Agreement.

       

      6.06.           Nature of
Collateral.  None of the Collateral of such Grantor
constitutes, or is the proceeds of, farm products and none of the Collateral has
been purchased or will be used by such Grantor primarily for personal, family or
household purposes, and as of the Closing Date, except as indicated in the
Perfection Certificate and as of any date of any Perfection Supplement, except
as indicated in such Perfection Supplement or in the Perfection
Certificate:

       

      (a)           none
of the account debtors or other persons obligated on any of the Collateral of
such Grantor is a governmental authority subject to the Federal Assignment of
Claims Act or like federal, state or local statute or rule in respect of such
Collateral;

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (b)           such
Grantor holds no commercial tort claims;

       

      (c)           such
Grantor has no deposit accounts or other bank accounts;

       

      (d)           such
Grantor owns no motor vehicles;

       

      (e)           such
Grantor has no securities accounts or securities entitlements or commodities
accounts or commodities contracts;

       

      (f)           such
Grantor holds no interest in, title to or power to transfer, any Patents, Patent
Licenses, Trademarks, Trademark Licenses, Trade Secrets, Trade Secret Licenses,
Copyrights or Copyright Licenses; and

       

      (g)           such
Grantor holds no interest in, title to or power to transfer any Intellectual
Property that is eligible for registration in the PTO or the Copyright
Office.

       

      6.07.           Compliance with
Laws.  Such Grantor has at all times operated its business in
compliance with all laws, except as could not reasonably be expected to have a
Material Adverse Effect.

       

      6.08.           Validity of Security
Interest. Except with respect to
assets which in the aggregate for all Grantors do not have a value exceeding
$250,000, (a) the Security Interest granted by such Grantor constitutes a
legal and valid security interest in all of the Collateral of such Grantor
securing the payment and performance of the Secured Obligations and
(b) upon the giving of value, the filing of financing statements describing
the Collateral in the offices listed on the Perfection Certificate, the
recording in the PTO of the Trademark Security Agreement Supplement and the
Patent Security Agreement Supplement and in the Copyright Office of the
Copyright Security Agreement Supplement, and the taking of all applicable
actions in respect of perfection contemplated by Sections 7.06, 7.07, 7.08,
7.09, 7.10, 7.11 and 7.12 in respect of
Collateral (in which a security interest cannot be perfected by the filing of a
financing statement or such recordings in the PTO or the Copyright Office), the
Security Interest will be valid, enforceable and perfected in all Collateral of
such Grantor.  The Security Interest is and shall be prior to any
other Lien on the Collateral, other than Liens expressly permitted to be prior
to the Security Interest under the Credit Agreement.

       

      6.09.           Perfection Certificate;
Intellectual Property Filings.

       

      (a)           All
information set forth on the Perfection Certificate is, and all information set
forth on each Perfection Supplement shall be, accurate and
complete.

       

      (b)           A
fully executed Patent Security Agreement Supplement, Trademark Security
Agreement Supplement and a Copyright Security Agreement Supplement containing a
description of all Collateral of such Grantor consisting of United States
Patents and United States registered Trademarks (and Trademarks for which United
States registration applications are pending) and United States registered
Copyrights have been delivered to the Agent for recording by the PTO and the
Copyright Office, as necessary, pursuant to 35 U.S.C. § 261, 15 U.S.C. § 1060 or
17 U.S.C. § 205 and the regulations thereunder, as applicable.

       

      6.10.           Investment
Property.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (a)           The
shares of Pledged Stock pledged by such Grantor hereunder constitute all of the
issued and outstanding shares of all classes of the capital stock or other
equity interests of each Issuer owned by such Grantor or, in the case of any
Excluded Foreign Subsidiary Voting Stock, 65% of the outstanding Excluded
Foreign Subsidiary Voting Stock of each relevant Issuer.

       

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

       

      (c)           The
terms of any uncertificated limited liability company interests and partnership
interests included in the Pledged Stock expressly provide that they are
securities governed by Article 8 of the Uniform Commercial Code in effect from
time to time in the “issuer’s jurisdiction” of each Issuer thereof (as such term
is defined in the UCC in effect in such jurisdiction).

       

      (d)           Such
Grantor is the record and beneficial owner of, and has good and marketable title
to, the Pledged Securities 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.

       

      6.11.           Receivables.  No
amount exceeding $50,000 and 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 Agent.

       

      6.12.                      Accounts.  (i) Each account of
such Grantor is genuine and in all material respects what they purport to be,
(ii) each account arises out of (A) a bona fide sale of goods sold and
delivered by such Grantor (or is in the process of being delivered) or
(B) services theretofore actually rendered or to be rendered by such
Grantor to the account debtor named therein, (iii) no material account of
such Grantor is evidenced by any instrument or chattel paper unless such
instrument or chattel paper has been theretofore endorsed over and delivered to,
or submitted to the control of, the Agent and (iv) no surety bond was
required or given in connection with any account of such Grantor or the
contracts or purchase orders out of which they arose and the right to receive
payment under each account is assignable.

       

      6.13.                      Equipment
and Inventory.  With respect to
any material equipment and/or material
inventory of such Grantor, each such Grantor has exclusive possession and
control of such equipment and inventory of such Grantor except for (i) equipment
leased by such Grantor as a lessor or (ii) equipment or inventory in transit
with common or other carriers. No material inventory is held by such Grantor
pursuant to consignment, sale or return, sale on approval or similar
arrangement.

       

      Section
7.                      Covenants.  Each
Grantor covenants and agrees with the Agent, in each case at such Grantor’s own
cost and expense, as follows.

       

      7.01.           Grantors’ Legal
Status.  Such Grantor shall not change its type of
organization, jurisdiction of organization or other legal structure except, upon
not less than twenty (20) days’ prior written notice to the Agent.

       

      7.02.           Grantors’
Names.  Such Grantor shall not change its name, except upon not
less than twenty (20) days’ prior written notice to the Agent.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      7.03.           Grantors’ Organizational
Numbers.  Without providing at least twenty (20) days’ prior
written notice to the Agent, such Grantor shall not change its organizational
identification number if it has one.  If such Grantor does not have an
organizational identification number and later obtains one, such Grantor shall
forthwith notify the Agent of such organizational identification number promptly
upon obtaining such identification number.

       

      7.04.           Locations.  Without
providing at least twenty (20) days’ prior written notice to the Agent, such
Grantor shall not (a) change its place of business or (if it has more than
one place of business) its chief executive office and shall promptly notify the
Agent of any new location of Collateral owned by Borrower or a Domestic
Subsidiary thereof that is not set forth on a Perfection Certificate or
Perfection Supplement.

       

      7.05.           Covenants in Credit
Agreement.  Each 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.

       

      7.06.           Promissory Notes and
Tangible Chattel Paper.  If such Grantor, together with the
other Grantors, shall at any time hold or acquire any promissory notes or
tangible chattel paper in an aggregate principal amount of more than $50,000,
such Grantor shall forthwith endorse, assign and deliver the same to the Agent,
accompanied by such instruments of transfer or assignment duly executed in blank
as the Agent may from time to time specify to be held by the Agent as Collateral
pursuant to this Agreement.

       

      7.07.           Deposit
Accounts.  For each deposit account that such Grantor at any
time opens or maintains, such Grantor shall, at the Agent’s request and option,
either (a) cause the depository bank to enter into a written agreement or
other authenticated record with the Agent, in form and substance reasonably
satisfactory to the Agent, pursuant to which such depository bank shall agree,
among other things, to comply at any time with instructions from the Agent to
such depository bank directing the disposition of funds from time to time
credited to such deposit account, without further consent of the Grantor such
agreement to be substantially in the form of Exhibit E or
such other form as the Agent shall approve, or (b) arrange for the Agent to
become the customer of the depository bank with respect to the deposit account;
provided, however, that
notwithstanding the foregoing, the requirements of this Section 7.07 shall
not apply to (i) any zero balance payroll or similar disbursement account
maintained by any Grantor (and each Grantor agrees not to deposit in any payroll
account or similar disbursement account maintained by it any funds, except funds
needed at the time of deposit (or within three days thereafter) to meet payroll
needs of such Grantor), (ii) any deposit account maintained by any Grantor as of
the Closing Date and listed on Schedule 7.07(a)
until the date sixty (60) days following the Closing Date.

       

      7.08.           Investment
Property. 

       

      (a)           If
any of the Collateral shall be or become evidenced or represented by an
uncertificated security, such Grantor shall cause the Issuer thereof either (i)
to register the Agent as the registered owner of such uncertificated security,
upon original issue or registration of transfer or (ii) to agree in writing with
such Grantor and the Agent that such Issuer will comply with instructions with
respect to such uncertificated security originated by the Agent without further
consent of such Grantor, such agreement to be in substantially the form of Exhibit F or
such other form as the Agent shall approve.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (b)           If
any of the Collateral shall be or become evidenced or represented by a security
entitlement, such Grantor shall cause the securities intermediary with respect
to such security entitlement either (i) to identify in its records the Agent as
having such security entitlement against such securities intermediary or (ii) to
agree in writing with such Grantor and the Agent that such securities
intermediary will comply with entitlement orders originated by the Agent without
further consent of such Grantor, such agreement to be in substantially the form
of Exhibit G or
such other form as the Agent shall approve.

       

      (c)           If
any of the Collateral shall be or become evidenced or represented by a commodity
contract, such Grantor shall cause the commodity intermediary with respect to
such commodity contract to agree in writing with such Grantor and the Agent that
such commodity intermediary will apply any value distributed on account of such
commodity contract as directed by the Agent without further consent of such
Grantor, such agreement to be in substantially the form of Exhibit H or
such other form as the Agent shall approve.

       

      (d)           If
any of the Collateral shall be or become evidenced or represented by or held in
a securities account or a commodity account, such Grantor shall, in the case of
a securities account, comply with subsection (b) of this Section 7.08 with
respect to all security entitlements carried in such securities account and, in
the case of a commodity account, comply with subsection (c) of this Section 7.08 with
respect to all commodity contracts carried in such commodity
account.

       

      (e)           If
such Grantor shall receive any stock or other ownership 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 or other equity interests of any
Issuer, whether in addition to, in substitution of, as a conversion of, or in
exchange for, any shares of or other ownership interests in the Pledged Stock,
or otherwise in respect thereof, such Grantor shall accept the same as the agent
of the Secured Creditors, hold the same in trust for the Secured Creditors and
deliver the same forthwith to the Agent in the exact form received, duly
endorsed by such Grantor to the Agent, if required, together with an undated
stock power covering such certificate duly executed in blank by such Grantor and
with, if the Agent so requests, signature guaranteed, to be held by the Agent,
subject to the terms hereof, as additional collateral security for the Secured
Obligations.

       

      (f)           Subject
to Section
7.08(h) hereof, such Grantor shall be entitled:

       

      (i)           to
exercise, as it shall think fit, but in a manner not inconsistent with the terms
hereof and of the Credit Agreement, the voting power with respect to the Pledged
Stock of such Grantor, and for that purpose the Agent shall (if any Pledged
Stock shall be registered in the name of the Agent or its nominee) execute or
cause to be executed from time to time, at the expense of such Grantor, such
proxies or other instruments in favor of such Grantor or its nominee, in such
form and for such purposes as shall be reasonably required by such Grantor and
shall be specified in a written request therefor, to enable it to exercise such
voting power with respect to the Pledged Stock; and

       

      (ii)           except
as otherwise provided in paragraphs (g) and (h) of this Section 7.08, to
receive and retain for its own account any and all payments made in respect of
the Pledged Securities to the extent such are permitted pursuant to the terms of
the Credit Agreement.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (g)           Any
sums paid upon or in respect of the Pledged Securities upon the liquidation or
dissolution of any Issuer shall be paid over to the Agent to be held by it
hereunder as additional collateral security for the Secured Obligations, and in
case any distribution of capital shall be made on or in respect of the Pledged
Securities or any property shall be distributed upon or with respect to the
Pledged Securities 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 Agent, be delivered to the Agent to be held by it hereunder as
additional collateral security for the Secured Obligations.  If any
sums of money or property so paid or distributed in respect of the Pledged
Securities shall be received by such Grantor, such Grantor shall, until such
money or property is paid or delivered to the Agent, hold such money or property
in trust for the Secured Creditors, segregated from other funds of such Grantor,
as additional collateral security for the Secured Obligations.

       

      (h)           Upon
the occurrence and during the continuance of any Event of Default, all rights of
such Grantor to exercise or refrain from exercising the voting and other
consensual rights that it would otherwise be entitled to exercise pursuant to
Section 7.08(f)(i)
hereof and to receive the payments pursuant to Section 7.08(f)(ii)
hereof shall cease, and thereupon the Agent shall be entitled to exercise all
voting power with respect to the Pledged Securities and to receive and retain,
as additional collateral hereunder, any and all such payments any time declared
or paid upon any of the Pledged Securities during such an Event of Default and
otherwise to act with respect to the Pledged Securities as outright owner
thereof.

       

      (i)           At
any time and from time to time with respect to Pledged Securities other than
Pledged Stock either Borrower or a Subsidiary of either Borrower and at any time
and from time to time during the continuance of an Event of Default with respect
to Pledged Stock of a Subsidiary of either Borrower, the Agent may cause all or
any of the Pledged Securities to be transferred to or registered in its name or
the name of its nominee or nominees.

       

      (j)           Without
the prior written consent of the Agent, such Grantor will not (i) sell, assign,
transfer, exchange, or otherwise dispose of, or grant any option with respect
to, any of the Investment Property or Proceeds thereof or any interest therein
(except pursuant to a transaction permitted by the Credit Agreement), (ii)
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 and except for non-consensual Liens permitted by the Credit Agreement,
or (iii) enter into any agreement or undertaking expressly restricting the
foreclosure of the Agent’s Security Interest in any of the Investment Property
or Proceeds thereof or any interest therein.

       

      (k)           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 Pledged Securities
issued by it and will comply with such terms insofar as such terms are
applicable to it, (ii) it will notify the Agent promptly in writing of the
occurrence of any of the events described in Section 7.08(e) or
Section 7.08(g)
with respect to the Pledged Securities issued by it and (iii) the terms of Section 13.04(c)
shall apply to it, mutatis mutandis, with respect to all actions that may be
required of it with respect to the Pledged Securities issued by
it.  Each Grantor which is an Issuer consents to the grant of a
Security Interest in capital stock or other equity interests of such Issuer the
exercise of rights by the Agent in respect of such capital stock or other equity
interests, including (to the extent permitted hereunder) the foreclosure thereon
and the Agent, its nominee

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      or
transferee becoming a partner or member of any such Issuer that is a partnership
or limited liability company.

       

      7.09.           Collateral in the Possession
of a Bailee.  If any goods with a value in excess of $50,000
are at any time in the possession of a bailee, such Grantor shall promptly
notify the Agent thereof and, if requested by the Agent, shall promptly obtain
an acknowledgement from such bailee, in form and substance reasonably
satisfactory to the Agent, that such bailee holds such Collateral for the
benefit of the Secured Creditors, provided, that, notwithstanding the foregoing,
this Section
7.09 shall not apply to any goods constituting.

       

      7.10.           Electronic Chattel Paper and
Transferable Records. If such Grantor, together with the other Grantors,
shall at any time hold or acquire interests in any electronic chattel paper or
any “transferable record,” as that term is defined in Section 201 of the federal
Electronic Signatures in Global and National Commerce Act, or in Section 16
of the Uniform Electronic Transactions Act as in effect in any relevant
jurisdiction, in excess of $250,000 in the aggregate, such Grantor shall
promptly notify the Agent thereof and, at the request of the Agent, shall take
such action as the Agent may reasonably request to vest in the Agent control,
under Section 9-105 of the UCC, of such electronic chattel paper or control
under Section 201 of the federal Electronic Signatures in Global and National
Commerce Act or, as the case may be, Section 16 of the Uniform Electronic
Transactions Act, as so in effect in such jurisdiction, of such transferable
record.  The Agent agrees with such Grantor that the Agent shall
arrange, pursuant to procedures reasonably satisfactory to the Agent and so long
as such procedures will not result in the Agent’s loss of control, for such
Grantor to make alterations to the electronic chattel paper or transferable
record permitted under Section 9-105 of the UCC or, as the case may be,
Section 201 of the federal Electronic Signatures in Global and National Commerce
Act or Section 16 of the Uniform Electronic Transactions Act, unless an
Event of Default has occurred and is continuing or would occur after taking into
account any action by such Grantor with respect to such electronic chattel paper
or transferable record.

       

      7.11.           Letter-of-Credit
Rights. If such Grantor, together with the other Grantors, shall at any
time be beneficiaries under one or more letters of credit, now or hereafter
issued, having aggregate undrawn amounts of more than $250,000, such Grantor
shall promptly notify the Agent thereof and, at the request and option of the
Agent, such Grantor shall either (a) arrange, for the issuer and any
nominated person with respect to such letter of credit to consent, pursuant to
an agreement or other authenticated record with and in the form of Exhibit I or in
such other form and in substance satisfactory to the Agent, to an assignment to
the Agent of the proceeds of any drawing under the letter of credit or
(b) arrange for the Agent to become the transferee beneficiary of the
letter of credit.

       

      7.12.           Commercial Tort
Claims.  If such Grantor shall at any time hold or acquire a
commercial tort claim, such Grantor shall immediately notify the Agent in a
writing signed by such Grantor of the brief details thereof and grant to the
Agent for the benefit of the Secured Creditors in such writing a security
interest therein and in the proceeds thereof, all upon the terms of this
Agreement, with such writing to be in form and substance reasonably satisfactory
to the Agent.

       

      7.13.           Intellectual
Property.

       

      (a)           Except
in any respect that would not materially impair the right, power, authority and
ability of any Grantor to use its intellectual property as necessary
or

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      convenient
for the profitable conduct of their businesses and would not reasonably be
expected to have a Material Adverse Effect:

       

      (i)           Such
Grantor (either itself or through licensees) will (A) continue to use each
material Trademark on each and every trademark class of goods in the ordinary
course of business in order to maintain such Trademark in full force free from
any claim of abandonment for non-use in any class of goods for which
registration was obtained, (B) maintain in the ordinary course of business
the quality of products and services offered under such Trademark and take all
necessary steps to ensure that all licensed users of such Trademark maintain as
in the past such quality, (C) use such Trademark with the appropriate
notice of registration and all other notices and legends required by applicable
Requirements of Law, (D) not adopt or use any mark which is confusingly
similar or a colorable imitation of such Trademark unless the Agent, for the
ratable benefit of the Secured Creditors, shall obtain a perfected security
interest in such mark pursuant to this Agreement and the Intellectual Property
Security Agreement, and (E) not (and not permit any licensee or sublicensee
thereof to) do any act or knowingly omit to do any act whereby such Trademark
may become invalidated or impaired in any way.

       

      (ii)           Such
Grantor (either itself or through licensees) will not do any act, or omit to do
any act, whereby any material Patent may become forfeited, abandoned or
dedicated to the public.

       

      (iii)           Such
Grantor (either itself or through licensees) (A) will employ each material
Copyright and (B) will not (and will not permit any licensee or sublicensee
thereof to) do any act or knowingly omit to do any act whereby any material
portion of the Copyrights may become invalidated or otherwise
impaired.  Such Grantor will not (either itself or through licensees)
do any act whereby any material portion of the Copyrights may fall into the
public domain.

       

      (iv)           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.

       

      (v)           Such
Grantor (either itself or through licensees) will use proper statutory notice in
connection with the use of each material Patent, Trademark and Copyright
included in the Intellectual Property.

       

      (vi)           Such
Grantor will take all reasonable and necessary steps, including, without
limitation, in any proceeding before the PTO, the 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 material Intellectual
Property, including, without limitation, the payment of required fees and taxes,
the filing of responses to office actions issued by the PTO and the Copyright
Office, the filing of applications for renewal or extension, the filing of
affidavits of use and affidavits of incontestability, the filing of divisional,
continuation, continuation-in-part, reissue, and renewal applications or
extensions, the payment of maintenance fees, and the participation in
interference, reexamination, opposition, cancellation, infringement and
misappropriation proceedings.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (vii)           Such
Grantor (either itself or through licensees) will not, without the prior written
consent of the Agent, discontinue use of or otherwise abandon any Intellectual
Property or abandon any right to file an application for letters patent,
trademark, or copyright, unless such Grantor shall have previously determined
that such use or the pursuit or maintenance of such Intellectual Property is no
longer desirable in the conduct of such Grantor’s business and that the loss
thereof could not reasonably be expected to have a Material Adverse Effect and,
in which case, such Grantor shall give prompt notice of any such abandonment to
the Agent in accordance herewith.

       

      (viii)           In
the event that any material Intellectual Property is infringed, misappropriated
or diluted by a third party, such Grantor shall (A) take such actions as such
Grantor shall reasonably deem appropriate under the circumstances to protect
such Intellectual Property and (B) if such Intellectual Property is of material
economic value, promptly notify the Agent after it learns thereof and sue for
infringement, misappropriation or dilution, to seek injunctive relief where
appropriate and to recover any and all damages for such infringement,
misappropriation or dilution.

       

      (ix)           Such
Grantor will do all things that are necessary and proper within such Grantor’s
power and control to keep each license of Intellectual Property held by such
Grantor as licensee or licensor in full force and effect except to the extent
that (A) such Grantor has reasonably determined that the failure to keep any
such license in full force and effect could not be reasonably expected to have a
Material Adverse Effect or (B) any such license would expire by its terms or is
terminable at will by a Person other than Grantor.

       

      (x)           In
the event that such Grantor shall create any nonexclusive license in any
Trademark, Copyright, Patent or other Intellectual Property or General
Intangible, in each case owned by or licensed to such Grantor (whether pursuant
to a local marketing agreement, time broadcasting agreement or otherwise) and
such license is (x) for a duration of more than eighteen (18) months, (y) not
terminable at the option of such Grantor and (z) not by its terms expressly
subject and subordinate to the Security Interest, then, and in any such event,
such license shall constitute a Disposition of the licensed property. In the
event such Grantor creates any license in Trademark, Copyright, Patent, other
Intellectual Property or General Intangible owned by or licensed to such Grantor
that does not meet the requirements of the immediately preceding sentence, such
license shall not constitute a Disposition of such Trademark, Copyright, Patent,
other Intellectual Property or General Intangible.

       

      (xi)           Such
Grantor shall maintain all of its rights to its domain names in full force and
effect, other than any, the loss of which could not reasonably be expected to
result in a Material Adverse Effect.

       

      (b)           Such
Grantor will notify the Agent immediately if it knows, or has reason to know,
that any registration relating to any material Intellectual Property has been or
could reasonably be expected to be 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
proceeding in the PTO, the Copyright Office or any court or tribunal in any
country) regarding such Grantor’s ownership of, or the validity of, any material
Intellectual Property or such Grantor’s right to register the same or to own and
maintain the same.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (c)           Whenever
such Grantor, either by itself or through any agent, employee, licensee or
designee, shall file an application for the registration of any Intellectual
Property with the PTO, the 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 Agent within five Business Days after the last day of
the fiscal quarter in which such filing occurs.  Upon request of the
Agent, such Grantor shall execute and deliver, and have recorded, any and all
agreements, instruments, documents, and papers as the Agent may request to
evidence the Secured Creditors’ Security Interest in any Copyright, Patent,
Trademark or other Intellectual Property and the goodwill and general
intangibles of such Grantor relating thereto or represented
thereby.

       

      (d)           Such
Grantor agrees that, should it obtain an ownership interest in any item of
Intellectual Property which is not now a part of the Intellectual Property
Collateral (the “After-Acquired Intellectual
Property”), (i) the provisions of Section 3 shall
automatically apply thereto, (ii) any such After-Acquired Intellectual Property,
and in the case of trademarks, the goodwill of the business connected therewith
or symbolized thereby, shall automatically become part of the Collateral, (iii)
it shall give prompt (and, in any event within twenty (20) days after the date
of such acquisition) written notice thereof to the Agent in accordance herewith,
and (iv) it shall provide the Agent promptly (and, in any event within twenty
(20) days after the date of such acquisition) with an amended Perfection
Certificate and amended schedules to the applicable Intellectual Property
Security Agreement reflecting the acquisition of such After-Acquired
Intellectual Property.  Such Grantor authorizes the Agent to modify
this Agreement by amending the Perfection Certificate and to modify the
schedules to the applicable Intellectual Property Security Agreement if such
Grantor fails to provide the Agent with satisfactory amended schedules hereto or
thereto within the time period required hereunder (and will cooperate with the
Agent in effecting any such amendment) to include any After-Acquired
Intellectual Property which becomes part of the Intellectual Property Collateral
under this Section, and to record any such modified agreement with the PTO, the
Copyright Office, or any other applicable Governmental Authority.

       

      (e)           Such
Grantor assumes all responsibility and liability arising from the use of the
Intellectual Property and hereby indemnifies and holds the Secured Creditors
harmless from and against any claim, suit, loss, damage or expense (including
reasonable attorneys’ fees arising out of any alleged defect in any product
manufactured, promoted or sold by such Grantor (or any affiliate or subsidiary
thereof) in connection with such Intellectual Property or out of the
manufacture, promotion, labeling, sale or advertisement of any such product by
such Grantor (or any affiliate or subsidiary thereof), except for any claim,
suit, loss, damage or expense arising solely from the gross negligence or
willful misconduct of a Secured Creditor as finally determined by a court of
competent jurisdiction.

       

      (f)           Such
Grantor agrees to execute one or more applicable Intellectual Property Security
Agreements with respect to its Intellectual Property in order to record the
Security Interest granted herein to the Agent for the ratable benefit of the
Secured Creditors with the PTO, the Copyright Office, and any other applicable
Governmental Authority.

       

      7.14.           Maintenance of Collateral;
Compliance with Laws.  (a) Such Grantor shall keep the
Collateral provided by it in good order and repair and shall not use the same in
violation of any law to the extent that such violation could reasonably be
expected to have a Material Adverse Effect.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      7.15.           Dispositions of
Collateral.  Such Grantor shall not sell or otherwise dispose,
or offer to sell or otherwise dispose, of the Collateral provided by it or any
interest therein except for dispositions permitted by the Credit
Agreement.  In the event that such Grantor shall create any lease of
any personal property owned by or leased to such Grantor and such lease is (x)
for a duration of more than eighteen (18) months, (y) not terminable at the
option of such Grantor and (z) not by its terms expressly subject and
subordinate to the Security Interest, then, and in any such event, such lease
shall constitute a Disposition of the leased property.  In the event
such Grantor creates any lease in any personal property owned by or leased to
such Grantor that does not meet the requirements of the immediately preceding
sentence, such lease shall not constitute a Disposition of such personal
property.

       

      7.16.           Maintenance of
Insurance.  Such Grantor, at its sole cost and expense, shall
maintain or cause to be maintained insurance covering physical loss or damage to
the Collateral provided by it in accordance with the Credit
Agreement.

       

      7.17.           Periodic
Certification.  From time to
time on demand (which demand, absent an Event of Default, shall be no more
frequent that once every four months) from the Agent, but in no event less
frequently than annually, such Grantor shall deliver to the Agent a supplemental
perfection certificate (each, a “Perfection Supplement”) executed
by such Grantor setting forth the information required pursuant to the
Perfection Certificate or confirming that there has been no change in such
information since the date of such certificate or the date of the most recent
certificate delivered pursuant to this   Section 7.17.

       

      7.18.           Other Actions as to any and
all Collateral.  Such Grantor further agrees to take any other
action reasonably requested by the Agent to insure the attachment, perfection
and, first priority of, and the ability of the Agent to enforce, the Security
Interest in any and all of the Collateral provided by such Grantor including,
without limitation, (a) executing, delivering and, where appropriate,
filing financing statements and amendments relating thereto under the UCC, to
the extent, if any, that such Grantor’s signature thereon is required therefor;
(b) causing the Agent’s name to be noted as secured party on any
certificate of title for a titled good if such notation is a condition to
attachment, perfection or priority of, or ability of the Agent to enforce, the
Security Interest in such Collateral; (c) complying with any provision of
any statute, regulation or treaty of the United States of America as to any
Collateral if compliance with such provision is a condition to the attachment,
perfection or priority of, or the ability of the Agent to enforce, the Security
Interest in such Collateral; (d) obtaining governmental and other third
party consents and approvals, including without limitation any consent of any
licensor, lessor or other person obligated on such Collateral;
(e) obtaining waivers from mortgagees, bailees, landlords and any other
person who has possession of or any interest in any Collateral or any real
property on which any such Collateral may be located, in form and substance
satisfactory to the Agent; (f) providing to the Agent “control” over such
Collateral, to the extent that perfection can only be achieved under the UCC by
control or where obtaining perfection by control provides more protection to the
Secured Creditors that perfection by filing a financing statement; and
(g) taking all actions required by the UCC or by other law, as applicable
in any relevant UCC jurisdiction, or by other law as applicable in any foreign
jurisdiction; provided, however, that nothing
contained in paragraphs (d) or (e) shall require such Grantor to pay any
consideration (other than any governmental application, processing, filing or
recording fees) in order to obtain any consent or waiver referred to in such
paragraphs.

       

      7.19.           Treatment of Accounts.
No Grantor shall grant or extend the time for payment of any material
account, or compromise or settle any account for less than the full

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      amount
thereof, or release any person or property, in whole or in part, from payment
thereof, or allow any credit or discount thereon, other than as normal and
customary in the ordinary course of a Grantor’s business.

       

      Section
8.                      Inspection
and Verification.  The Agent and such Persons as the Agent may
designate shall have the right, at each Grantor’s own cost and expense, to
inspect the Collateral of such Grantor, all records related thereto (and to make
extracts and copies from such records) and the premises upon which any of the
Collateral of such Grantor is located, to discuss such Grantor’s affairs with
the officers of such Grantor (i) in the absence of an Event of Default, upon
reasonable prior notice and during regular operating hours for such Grantor and
(ii) otherwise, at any time as the Agent shall decide in its sole
discretion.

       

      Section
9.                      Collateral
Protection Expenses; Preservation of Collateral.

       

      9.01.           Expenses Incurred by the
Agent.  In its discretion, the Agent may, if the relevant
Grantor fails to do so, discharge taxes and other encumbrances at any time
levied or placed on any material portion of the Collateral, make repairs thereto
and pay any necessary filing fees or insurance premiums.  Each Grantor
agrees to reimburse the Agent on demand for any and all expenditures so made,
and all sums disbursed by the Agent in connection with this Section 9.01,
including reasonable attorneys’ fees, court costs, expenses and other charges
relating thereto, shall be payable, upon demand, by such Grantor to the Agent
shall bear interest at the per annum rate specified in Section 17 and
shall constitute additional Secured Obligations.  The Agent shall have
no obligation to any Grantor to make any such expenditures, nor shall the making
thereof relieve any Grantor of any default.

       

      9.02.           Agent’s Obligations and
Duties.

       

      (a)           Anything
herein to the contrary notwithstanding, each Grantor shall remain liable under
each contract or agreement comprised in the Collateral provided by it to be
observed or performed by such Grantor thereunder.  Neither the Agent
nor any other Secured Creditor shall have any obligation or liability under any
such contract or agreement by reason of or arising out of this Agreement or the
receipt by the Agent or any other Secured Creditor of any payment relating to
any of the Collateral, nor shall the Agent or any other Secured Creditor be
obligated in any manner to perform any of the obligations of any Grantor under
or pursuant to any such contract or agreement, to make inquiry as to the nature
or sufficiency of any payment received by the Agent or any other Secured
Creditor in respect of the Collateral or as to the sufficiency of any
performance by any party under any such contract or agreement, to present or
file any claim, to take any action to enforce any performance or to collect the
payment of any amounts which may have been assigned to the Agent or any other
Secured Creditor or to which the Agent or any other Secured Creditor may be
entitled at any time or times.

       

      (b)           The
Agent’s sole duty with respect to the custody, safe keeping and physical
preservation of the Collateral in its possession, under Section 9-207 of
the NYUCC or otherwise, shall be to deal with such Collateral in the same manner
as the Agent deals with similar property for its own account.

       

      (c)           Neither
the Agent, nor any other Secured Party nor any of their respective officers,
directors, partners, employees, agents, attorneys and other advisors,
attorneys-in-fact or affiliates 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 Creditors hereunder are
solely to protect the Secured Creditors’ interests in the Collateral and shall
not impose any duty upon any Secured Creditor to exercise any such
powers.  The Secured Creditors 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, partners, employees, agents,
attorneys and other advisors, attorneys-in-fact or affiliates shall be
responsible to any Grantor for any act or failure to act hereunder, except to
the extent that any such act or failure to act is found by a final and
nonappealable decision of a court of competent jurisdiction to have resulted
from their respective gross negligence or willful misconduct.

       

      (d)           Each
Grantor acknowledges that the rights and responsibilities of the Agent under
this Agreement with respect to any action taken by the Agent or the exercise or
non-exercise by the 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 Agent and the other Secured Creditors, 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 Agent and
the Grantors, the Agent shall be conclusively presumed to be acting as agent for
the Secured Creditors 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.

       

      9.03.           Duties as to Pledged
Securities.

       

      (a)           With
respect to any calls, conversions, exchanges, redemptions, offers, tenders or
similar matters relating to any such Pledged Securities (herein called “Events”), any duty in
connection therewith imposed on the Agent by applicable law shall be fully
satisfied if:

       

      (i)           the
Agent exercises reasonable care to ascertain the occurrence and to give
reasonable notice to the applicable Grantor of any Events applicable to any
Pledged Securities that are registered and held in the name of Agent or its
nominee;

       

      (ii)           the
Agent gives the applicable Grantor reasonable notice of the occurrence of any
Events of which the Agent has received actual knowledge, which Events are
applicable to any securities that are in bearer form or are not registered and
held in the name of the Agent or its nominee (each Grantor agreeing to give the
Agent reasonable notice of the occurrence of any Events of which such Grantor
has knowledge, which Events are applicable to any securities in the possession
of the Agent); and

       

      (iii)           the
Agent endeavors to take such action with respect to any of the Events as the
applicable Grantor may reasonably and specifically request in writing in
sufficient time for such action to be evaluated and taken or, if the Agent
reasonably believes that the action requested would adversely affect the value
of the Pledged Securities as collateral or the collection of the Secured
Obligations, or would otherwise prejudice the interests of any Secured Creditor,
the Agent gives reasonable notice to such Grantor that any such requested action
will not be taken and, if the Agent makes such determination or if such Grantor
fails to make such timely request, the Agent takes such other action as it
reasonably deems advisable in the circumstances.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (b)           Except
as hereinabove specifically set forth, neither the Agent nor any other Secured
Creditor shall have any further obligation to ascertain the occurrence of, or to
notify any Grantor with respect to, any Events and shall not be deemed to assume
any such further obligation as a result of the establishment by the Agent or any
other Secured Creditor of any internal procedures with respect to any securities
in its possession, nor shall the Agent or any other Secured Creditor be deemed
to assume any other responsibility for, or obligation or duty with respect to,
any Pledged Securities or its use of any nature or kind, or any matter or
proceedings arising out of or relating thereto, including, without limitation,
any obligation or duty to take any action to collect, preserve or protect its or
any Grantor’s rights in the Pledged Securities or against any prior parties
thereto, but the same shall be at such Grantor’s sole risk and responsibility at
all times.

       

      (c)           Nothing
contained in this Section 9.03
shall be deemed to create any obligation in respect of Events on the Agent, the
purpose of this Section 9.03
being solely to provide standards, in the event that applicable law imposes any
obligations on the Agent as to Events.

       

      Section
10.                                Securities
and Deposits.  Without limitation of Section 7.08, but
subject to Section
7.08(i), the Agent may at any time at its option, transfer to itself or
any nominee any securities constituting Collateral, and, subject to Section 7.08(f)(ii),
receive any income thereon and hold such income as additional Collateral or
apply it to the Secured Obligations.  The Agent may after the
occurrence and during the continuance of an Event of Default demand, sue for,
collect, or make any settlement or compromise which it deems desirable with
respect to the Collateral.  Regardless of the adequacy of Collateral
or any other security for the Secured Obligations, any deposits or other sums at
any time credited by or due from the Agent or any other Secured Creditor to any
Grantor may at any time be applied to or set off against any of the Secured
Obligations whether or not due and owing.

       

      Section
11.                                Notification
to Account Debtors and Other Persons Obligated on Collateral.  If an
Event of Default shall have occurred and be continuing, each Grantor shall, at
the request of the Agent, notify account debtors and other persons obligated on
any of the Collateral of such Grantor of the Security Interest in any account,
chattel paper, general intangible, instrument or other claims constituting
Collateral that payment thereof is to be made directly to the Agent or to any
financial institution designated by the Agent as the Agent’s agent therefor, and
the Agent may itself, if an Event of Default shall have occurred and be
continuing, without notice to or demand upon any Grantor, so notify account
debtors and other persons obligated on Collateral.  After the making
of such a request or the giving of any such notification, each Grantor shall
hold any proceeds of collection of accounts, chattel paper, general intangibles,
instruments and other claims constituting Collateral received by the Grantor as
trustee for the Secured Creditors without commingling the same with other funds
of the Grantor and shall turn the same over to the Agent in the identical form
received, together with any necessary endorsements or
assignments.  The Agent shall have no liability or responsibility to
any Grantor for acceptance of a check, draft or other order for payment of money
bearing the legend “payment in full” or words of similar import or any other
restrictive legend or endorsement or be responsible for determining the
correctness of any remittance.  Without limitation of the foregoing,
during the continuation of an Event of Default (1) the Agent shall have the
right, but not the obligation, to make test verifications of the accounts in any
manner and through any medium that it reasonably considers advisable, and the
Grantors shall furnish all such assistance and information as the Agent may
require in connection with such test verifications, and (2) the Agent in its own
name or in the name of others may communicate with account debtors on
the

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      accounts
to verify with them to the Agent’s satisfaction the existence, amount and terms
of any accounts.  The Agent may apply the proceeds of collection of
accounts, chattel paper, general intangibles, instruments and other claims
constituting Collateral received by the Agent or any other Secured Creditor to
the Secured Obligations or hold such proceeds as additional Collateral, at the
option of the Agent.  The provisions of Section 9-209 of the NYUCC
shall not apply to any account, chattel paper or payment intangible as to which
notification of assignment has been sent to the account debtor or other person
obligation on the Collateral, whether under this Section 11,
Section 12
or Section 13.

       

      Section
12.                                Power
of Attorney.

       

      12.01.                      Appointment and Powers of
Agent. Each Grantor hereby irrevocably constitutes and appoints the 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 necessary or desirable to accomplish the purposes of this
Agreement, and, without limiting the generality of the foregoing, each Grantor
hereby gives the 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:

       

      (a)           in
the name of such Grantor or its own name, or otherwise, take possession of and
endorse 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 Agent for the
purpose of collecting any and all such moneys due under any Receivable or with
respect to any other Collateral whenever payable;

       

      (b)           in
the case of any Intellectual Property, execute and deliver, and have recorded,
any and all agreements, instruments, documents and papers as the Agent may
request to evidence the Security Interest in such Intellectual Property and the
goodwill and general intangibles of such Grantor relating thereto or represented
thereby;

       

      (c)           pay
or discharge taxes and Liens levied or placed on or threatened against the
Collateral, effect any repairs or provide any insurance and pay all or any part
of the premiums therefor and the costs thereof;

       

      (d)           execute,
in connection with any sale provided for in Section 13, any
endorsements, assignments or other instruments of conveyance or transfer with
respect to the Collateral;

       

      (e)           exercise
all rights of such Grantor as owner of the Pledged Securities or as party to any
partnership, limited liability company or similar agreement, including, without
limitation, the right to sign any and all amendments, instruments, certificates,
proxies, and other writings and exercise all voting and consent rights with
respect to the Pledged Securities;

       

      (f)           (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
Agent or as the 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 endorse 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
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 Agent may deem appropriate; (7) 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 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 Agent were the absolute owner thereof for all
purposes, and do, at the Agent’s option and such Grantor’s expense, at any time,
or from time to time, all acts and things which the Agent deems necessary to
protect, preserve or realize upon the Collateral and the Security Interest
therein and to effect the intent of this Agreement, all as fully and effectively
as such Grantor might do; and

       

      (g)           to
the extent that such Grantor’s authorization given in Section 4 is not
sufficient, to file such financing statements or similar documents under the
laws of any jurisdiction with respect hereto, with or without such Grantor’s
signature, or a photocopy of this Agreement in substitution for a financing
statement or such other document, as the Agent may deem appropriate and to
execute in such Grantor’s name such financing statements, other such documents
and amendments thereto and continuation statements which may require such
Grantor’s signature.

       

      Anything
in this Section
12.01 to the contrary notwithstanding, the Agent agrees that it will not
exercise any rights under the power of attorney provided for in this Section 12.01
(other than under paragraph (g) of this Section 12.01)
unless an Event of Default shall have occurred and be continuing.

       

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

       

      12.03.                      Expenses of
Attorney-in-Fact. The expenses of the Agent incurred in connection with
actions undertaken as provided in this Section 12, together
with interest thereon at a rate per annum equal to the Default Rate, from the
date of payment by the Agent to the date reimbursed by the relevant Grantor,
shall be payable by such Grantor to the Agent on demand.

       

      12.04.                      Ratification by
Grantor.  To the extent permitted by law, each Grantor hereby
ratifies all that said attorneys shall lawfully do or cause to be done by virtue
of this Section
12.  This power of attorney is a power coupled with an interest
and is irrevocable.

       

      12.05.                      No Duty on
Agent.  The powers conferred on the Agent, its directors,
officers and agents pursuant to this Section 12 are solely
to protect the Secured Creditors’ interests in the Collateral and shall not
impose any duty upon any of them to exercise any such powers.  Each
Secured Creditor shall be accountable only for the amounts that it actually
receives as a result of the exercise of such powers, and neither it nor any of
its officers, directors,

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      employees
or agents shall be responsible to any Grantor for any act or failure to act,
except for such Secured Creditor’s own gross negligence or willful
misconduct.

       

      Section
13.                                Remedies.

       

      13.01.                      Default.  Grantors
shall be in default under this Agreement (a) whenever any Event of Default has
occurred and is continuing (and each of the Grantors shall thereupon be in
default hereunder without regard to whether or to what degree any Grantor
individually may have caused, participated in, or had any knowledge of the
occurrence of such Event of Default) and (b) at all times after any Loan has
become due and payable and remains unpaid beyond any applicable grace period,
whether at maturity, upon acceleration pursuant to the Credit Agreement or
otherwise.

       

      13.02.                      Remedies Upon
Default.  At any time when any Grantor is in default under this
Agreement as set forth in Section 13.01, the
Agent may exercise and enforce, in any order, (i) each and all of the rights and
remedies available to a secured party upon default under the NYUCC or any other
applicable UCC or other applicable law, (ii) each and all of the rights and
remedies available to it under the Credit Agreement or any other Loan Document
and (iii) each and all of the following rights and remedies:

       

      (a)           Collection
Rights.  Without notice to any Grantor or any other Loan Party,
the Agent may notify any or all account debtors and obligors on any accounts,
instruments, general intangibles or other claims constituting Collateral of the
Secured Creditors’ Security Interests therein and may direct, demand and enforce
payment thereof directly to the Agent.  The provisions of Section
9-209 of the NYUCC shall not apply to any account, chattel paper or payment
intangible as to which notification of assignment has been sent to the account
debtor.

       

      (b)           Taking
Possession.  The Agent may (i) enter upon any and all premises
owned or leased by any Grantor where Collateral is located (or believed by the
Agent to be located), with or (to the fullest extent permitted by law) without
judicial process and without any obligation to pay rent, (ii) prior to the
disposition of the Collateral, store, process, repair or recondition the
Collateral or otherwise prepare the Collateral for disposition in any manner to
the extent the Agent deems appropriate, (iii) take possession of any Grantor’s
premises or place custodians in exclusive control thereof, remain on such
premises and use the same and any Grantor’s equipment for the purpose of
completing any work in process or otherwise preparing the Collateral for sale or
selling or otherwise transferring the Collateral, (iv) take possession of all
items of Collateral that are not then in its possession, either upon such
premises or by removal from such premises, and (v) require any Grantor or the
Person in possession thereof to deliver such Collateral to the Agent at one or
more locations designated by the Agent and reasonably convenient to it and each
Grantor owning an interest therein.

       

      (c)           Foreclosure.  The
Agent may sell, lease, license or otherwise dispose of or transfer any or all of
the Collateral or any part thereof in one or more parcels at public sale or in
private sale or transaction, on any exchange or market or at the Agent’s offices
or on any Grantor’s premises or at any other location, for cash, on credit or
for future delivery, and may enter into all contracts necessary or appropriate
in connection therewith, without any notice whatsoever unless required by
law.  Where permitted by law, one or more of the Secured Creditors may
be the purchasers at any such sale and in such event, if such bid is made by all
of the Lenders or otherwise whenever a credit bid is expressly permitted under
each Credit Agreement or approved in writing by the Agent and the Required
Lenders, the Secured Creditors

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      bidding
at such sale may bid part or all of the Obligations owing to them without
necessity of any cash payment on account of the purchase price, even though any
other purchaser at such sale is required to bid a purchase price payable in
cash.  Each Grantor agrees that at least ten (10) calendar days’
written notice to such Grantor of the time and place of any public sale of
Collateral owned by it (or, to the extent such Grantor is entitled by law to
notice thereof, the public sale of any other Collateral), or the time after
which any private sale of Collateral owned by it (or, to the extent such Grantor
is entitled by law to notice thereof, the private sale of any other Collateral)
is to be made, shall be commercially reasonable.  For purposes of such
notice, to the fullest extent permitted by law (i) each Grantor waives notice of
any sale of Collateral owned by any other Grantor and (ii) each Grantor agrees
that notice given to either Borrower shall constitute notice given to such
Grantor.  The giving of notice of any such sale or other disposition
shall not obligate the Agent to proceed with the sale or disposition, and any
such sale or disposition may be postponed or adjourned from time to time,
without further notice.

       

      (d)                                              Voting
Rights.  The Agent may exercise any and all rights of any
Grantor as the owner of any Pledged Securities, including, without limitation,
voting rights, rights to give or withhold consent under any agreement under
which any Pledged Security is issued and all other rights referred to in Section
12.01(e).

       

      (e)           Use of Intellectual
Property.  The Agent may, on a royalty-free basis, use and
license use of any Trademark, Trade Secret, trade name, trade style, Copyright,
Patent, technical knowledge or process or other Intellectual Property owned,
held or used by any Grantor in respect of any Collateral as to which any right
or remedy of the Agent is exercised or enforced.  In addition, the
Agent may exercise and enforce such rights and remedies for collection as may be
available to it by law or agreement.  Each Grantor grants a license
pursuant to Section
13.03 in connection therewith.

       

      (f)           Use of
Collateral.  With respect to any Collateral in the possession
of the Agent or any other Secured Creditor, or a bailee or other third party
holding on its behalf, the Agent or such other Secured Creditor may use or
operate such Collateral in any manner and to the extent determined by the Agent
or such Secured Creditor.

       

      13.03.                      Grant of License to Use
Intellectual Property.  For the purpose
of enabling the Agent to exercise rights and remedies under this Section 13 at such
time as the Agent shall be lawfully and otherwise entitled to exercise such
rights and remedies, each Grantor hereby grants to the Agent an irrevocable,
non-exclusive license (exercisable without payment of royalty or other
compensation to such Grantor) to use, license or sub-license any of the
Collateral consisting of Intellectual Property now owned or hereafter acquired
by the Grantor to the extent that such Grantor is not legally or contractually
prohibited from doing so (Grantor agreeing to use commercially reasonable
efforts not to enter into, after the Closing Date, any such contractual
prohibition), and wherever the same may be located, and including in such
license reasonable access to all media in which any of the licensed items may be
recorded or stored and to all computer software and programs used for the
compilation or printout thereof.  The use of such license by the Agent
shall be exercised, at the Agent’s option, only upon the occurrence and during
the continuation of an Event of Default; provided that any license, sub-license
or other transaction entered into by the Agent in accordance herewith shall be
binding upon each Grantor notwithstanding any subsequent cure, waiver or other
termination of an Event of Default.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      13.04.                      Waivers by
Grantors.  Each Grantor hereby irrevocably waives (a) all
rights of redemption from any foreclosure sale, (b) the benefit of all
valuation, appraisal, exemption and moratorium laws, (c) to the fullest extent
permitted by law, all rights to notice or a hearing prior to the exercise by the
Agent of its right to take possession of any Collateral, whether by self-help or
by legal process and any right to object to the Agent taking possession of any
Collateral by self-help, and (d) if the Agent seeks to obtain possession of any
Collateral by replevin, claim and delivery, attachment, levy or other legal
process, (i) any notice or demand for possession prior to the commencement of
legal proceedings, (ii) the posting of any bond or security in any such
proceedings, and (iii) any requirement that the Agent retain possession and not
dispose of any Collateral until after a trial or final judgment in such
proceedings.

       

      13.05.                      Application of
Proceeds.  Except as expressly provided elsewhere in this
Agreement, all proceeds received by the Agent in respect of any sale of,
collection from, or other realization upon all or any part of the Collateral
may, in the discretion of the Agent, be held by the Agent as Collateral for, or
then, or at any other time thereafter, applied in full or in part by the Agent
against, the Secured Obligations in the following order of
priority:

       

      FIRST:  to
the payment of all reasonable costs and expenses of such sale, collection or
other realization, including reasonable compensation to the Agent and its agents
and counsel, and all other reasonable expenses, liabilities and advances made or
incurred by the Agent in connection therewith, and all amounts for which the
Agent is entitled to indemnification hereunder and all reasonable advances made
by the Agent hereunder for the account of any Grantor, and to the payment of all
reasonable costs and expenses paid or incurred by the Agent in connection with
the exercise of any right or remedy hereunder, all in accordance with Section
19.09;

       

      SECOND:  to
the payment of all other Secured Obligations (for the ratable benefit of the
holders thereof) then due and payable in the manner and order provided in the
Credit  Agreement;

       

      THIRD:  to
any payments required by Sections 9-608(a)(1)(C) or 9-615(a)(3) of the NYUCC;
and

       

      FOURTH,
to the payment to or upon the order of the Grantor entitled thereto, or to
whomsoever may be lawfully entitled to receive the same or as a court of
competent jurisdiction may direct, of any surplus then remaining from such
proceeds.

       

      13.06.                      Surplus,
Deficiency.  Any surplus proceeds of any sale or other
disposition by the Agent of any Collateral remaining after discharge of the
Credit Agreement and after all Secured Obligations are paid in full and in cash
and any payments required by Sections 9-608(a)(1)(C) or 9-615(a)(3) of the NYUCC
are paid in full shall be paid over to the Grantor entitled thereto, or to
whomever may be lawfully entitled to receive such surplus or as a court of
competent jurisdiction may direct, but prior to termination and discharge of the
Credit Agreement, such surplus proceeds may be retained by the Agent and held as
Collateral until termination and discharge of the Credit
Agreement.  Each Borrower and each Guarantor shall be and remain
liable for any deficiency.

       

      13.07.                      Information Related to the
Collateral.  If, during the continuance of an Event of Default,
the Agent determines to sell or otherwise transfer any Collateral, each Grantor
shall, and shall cause any Person controlled by it to, furnish to the Agent all
information the

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Agent may
request that pertains or could pertain to the value or condition of the
Collateral or that would or might facilitate such sale or
transfer.  The Agent shall have the right, notwithstanding any
confidentiality obligation or agreement otherwise binding upon it, freely (but
not in violation of any law, including federal securities laws) to disclose such
information, and any and all other information (including confidential
information) pertaining in any manner to the Collateral or the assets,
liabilities, results of operations, business or prospects of any Secured
Creditors, freely to any Person that the Agent in good faith believes to be a
potential or prospective purchaser in such sale or transfer, without liability
for any disclosure, dissemination or use that may be made as to such information
by any such Person.

       

      13.08.                      Sale Exempt from
Registration.  The Agent shall be entitled at any such sale or
other transfer, if it deems it advisable to do so, to restrict the prospective
bidders or purchasers to Persons who will provide assurances satisfactory to the
Agent that the Collateral may be offered and sold to them without registration
under the Securities Act, and without registration or qualification under any
other applicable state or federal law.  Upon the consummation of any
such sale, the Agent shall have the right to assign, transfer and deliver to the
purchaser or purchasers thereof the Collateral so sold.  The Agent may
solicit offers to buy the Collateral, or any part of it, from a limited number
of investors deemed by the Agent, in its good faith judgment or in good faith
reliance upon advice of its counsel, to meet the requirements to purchase
securities under Regulation D promulgated under the Securities Act (or any other
regulation of similar import).  If the Agent solicits such offers from
such investors, then the acceptance by the Agent of the highest offer obtained
from any of them shall be deemed to be a commercially reasonable method of
disposition of the Collateral.

       

      13.09.                      Rights and Remedies
Cumulative.  The rights provided for in this Agreement and the
other Loan Documents are cumulative and are not exclusive of any other rights,
powers or privileges or remedies provided by law or in equity, or under any
other instrument, document or agreement.  The Agent may exercise and
enforce each right and remedy available to it either before or concurrently with
or after, and independently of, any exercise or enforcement of any other right
or remedy of the Agent or any other Secured Creditor against any Person or
property.  All such rights and remedies shall be cumulative, and no
one of them shall exclude or preclude any other.

       

      13.10.                      No Direct Enforcement by
Secured Creditors.  The Agent may freely exercise and enforce
any and all of its rights and remedies hereunder, for the benefit of the Secured
Creditors.  No Secured Creditor, other than the Agent, shall have any
independent right to collect, take possession of, foreclose against or otherwise
enforce the Security Interests granted hereby.

       

      Section
14.                                Standards
for Exercising Remedies.

       

      14.01.                      Commercially Reasonable
Manner.  To the extent that applicable law imposes duties on
the Agent to exercise remedies in a commercially reasonable manner, each Grantor
acknowledges and agrees that it is not commercially unreasonable for the Agent
(a) to fail to incur expenses reasonably deemed significant by the Agent to
prepare Collateral for disposition or otherwise to complete raw material or work
in process into finished goods or other finished products for disposition or to
postpone any such disposition pending any such preparation or processing;
(b) to fail to obtain third party consents for access to Collateral to be
disposed of, or to obtain or, if not required by other law, to fail to obtain
governmental or third party consents for the collection or disposition of
Collateral to be collected or disposed of; (c) to

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      fail to
exercise collection remedies against account debtors or other persons obligated
on Collateral or to remove any Lien on or any adverse claims against Collateral;
(d) to exercise collection remedies against account debtors and other
persons obligated on Collateral directly or through the use of collection
agencies and other collection specialists; (e) to advertise dispositions of
Collateral through publications or media of general circulation, whether or not
the Collateral is of a specialized nature; (f) to contact other persons,
whether or not in the same business as such Grantor, for expressions of interest
in acquiring all or any portion of the Collateral; (g) to hire one or more
professional auctioneers to assist in the disposition of Collateral, whether or
not the collateral is of a specialized nature; (h) to dispose of Collateral
by utilizing Internet sites that provide for the auction of assets of the types
included in the Collateral or that have the reasonable capability of doing so,
or that match buyers and sellers of assets; (i) to dispose of assets in
wholesale rather than retail markets; (j) to disclaim disposition
warranties; (k) to purchase insurance or credit enhancements to insure the
Agent against risks of loss, collection or disposition of Collateral or to
provide to the Agent a guaranteed return from the collection or disposition of
Collateral; or (l) to the extent deemed appropriate by the Agent, to obtain
the services of other brokers, investment bankers, consultants and other
professionals to assist the Agent in the collection or disposition of any of the
Collateral.  Each Grantor acknowledges that the purpose of this Section 14 is to
provide non-exhaustive indications of what actions or omissions by the Agent
would not be commercially unreasonable in the Agent’s exercise of remedies
against the Collateral and that other actions or omissions by the Agent shall
not be deemed commercially unreasonable solely on account of not being indicated
in this Section
14.  Without limiting the foregoing, nothing contained in this
Section 14
shall be construed to grant any rights to any Grantor or to impose any duties on
the Agent that would not have been granted or imposed by this Agreement or by
applicable law in the absence of this Section
14.

       

      14.02.                      Standard of
Care.  The powers conferred on the Agent hereunder are solely
to protect its interest in the Collateral and shall not impose any duty upon it
to exercise any such powers.  Except for the exercise of reasonable
care in the custody of any Collateral in its possession and the accounting for
moneys actually received by it hereunder, the Agent shall have no duty as to any
Collateral or as to the taking of any necessary steps to preserve rights against
prior parties or to protect, preserve, vote or exercise any rights pertaining to
any Collateral.  The Agent shall be deemed to have exercised
reasonable care in the custody and preservation of Collateral in its possession
if such Collateral is accorded treatment substantially equal to that which the
Agent accords its own property or if it selects, with reasonable care, a
custodian to hold such Collateral on its behalf.

       

      Section
15.                                Waivers
by Grantor; Obligations Absolute.

       

      15.01.                      Specific
Waivers.  Each Grantor waives demand, notice, protest, notice
of acceptance of this Agreement, notice of loans made, credit extended,
Collateral received or delivered or other action taken in reliance hereon and
all other demands and notices of any description other than those required
pursuant to the Credit Agreement or any other Loan Documents to which such
Grantor is a party.

       

      15.02.                      Obligations
Absolute.  All rights of the Agent hereunder, the Security
Interest and all obligations of the Grantors hereunder shall be absolute and
unconditional irrespective of (a) any lack of validity or enforceability of the
Credit Agreement, any other Loan Document, any agreement with respect to any of
the Secured Obligations or any other agreement or instrument relating to any of
the foregoing, (b) any change in the time, manner or place of

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      payment
of, or in any other term of, all or any of the Secured Obligations, or any other
amendment or waiver of or any consent to any departure from the Credit
Agreement, any other Loan Document, or any other agreement or instrument, (c)
any exchange, release or non-perfection of any Lien on other collateral, or any
release or amendment or waiver of or consent under or departure from or any
acceptance of partial payment thereon and or settlement, compromise or
adjustment of any Secured Obligation or of any guarantee, securing or
guaranteeing all or any of the Secured Obligations, or (d) any other
circumstance that might otherwise constitute a defense available to, or a
discharge of, any Grantor in respect of the Secured Obligations or this
Agreement other than the prompt and complete performance and payment in full of
the Secured Obligations.

       

      Section
16.                                Marshalling.  The
Agent shall not be required to marshal any present or future collateral security
(including but not limited to this Agreement and the Collateral) for, or other
assurances of payment of, the Secured Obligations or any of them or to resort to
such collateral security or other assurances of payment in any particular order,
and all of its rights hereunder and in respect of such collateral security and
other assurances of payment shall be cumulative and in addition to all other
rights, however existing or arising.  To the extent that it lawfully
may, each Grantor hereby agrees that it shall not invoke any law relating to the
marshalling of collateral which might cause delay in or impede the enforcement
of the Agent’s rights under this Agreement or under any other instrument
creating or evidencing any of the Secured Obligations or under which any of the
Secured Obligations is outstanding or by which any of the Secured Obligations is
secured or payment thereof is otherwise assured, and, to the extent that it
lawfully may, each Grantor hereby irrevocably waives the benefits of all such
laws.

       

      Section
17.                                Interest.  Until
paid, all amounts due and payable by each Grantor hereunder shall be a debt
secured by the Collateral and shall bear, whether before or after judgment,
interest at a rate per annum equal to the Default Rate, from the date of payment
by the Agent to the date reimbursed by such Grantor, and such interest shall be
payable by such Grantor to the Agent on demand.

       

      Section
18.                                Reinstatement.
The obligations of each Grantor pursuant to this Agreement shall continue to be
effective or automatically be reinstated, as the case may be, if at any time
payment of any of the Secured Obligations is rescinded or otherwise must be
restored or returned by the Agent or any other Secured Creditor upon the
insolvency, bankruptcy, dissolution, liquidation or reorganization of such
Grantor or any other obligor or otherwise, all as though such payment had not
been made.

       

      Section
19.                                Miscellaneous.

       

      19.01.                      Notices.  All
notices, requests and demands to or upon the Agent or any Grantor hereunder
shall be effected in the manner provided for in Section 10.2 of the
Credit Agreement.

       

      19.02.                      GOVERNING LAW; CONSENT TO
JURISDICTION. THIS AGREEMENT SHALL BE A CONTRACT MADE UNDER AND
GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS
MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO CONFLICT
OF LAWS PRINCIPLES (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL
OBLIGATIONS LAW). ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN
CONNECTION WITH THIS AGREEMENT OR ANY

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      OTHER
LOAN DOCUMENT, SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN THE COURTS OF THE
STATE OF NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK; PROVIDED THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY
COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT AGENT'S OPTION, IN THE COURTS OF
ANY JURISDICTION WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE
FOUND.  EACH PARTY HERETO HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO
THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND OF THE UNITED STATES
DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK FOR THE PURPOSE OF ANY SUCH
LITIGATION AS SET FORTH ABOVE.  EACH PARTY HERETO FURTHER IRREVOCABLY
CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY
PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK.  EACH PARTY
HERETO HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE
OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM
THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

       

      19.03.                      WAIVER OF JURY TRIAL,
ETC. EACH PARTY HERETO HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN
ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT,
ANY NOTE, ANY OTHER LOAN DOCUMENT AND ANY AMENDMENT, INSTRUMENT, DOCUMENT OR
AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION
HEREWITH OR THEREWITH OR ARISING FROM ANY LENDING RELATIONSHIP EXISTING IN
CONNECTION WITH ANY OF THE FOREGOING, AND AGREES THAT ANY SUCH ACTION OR
PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

       

      19.04.                      Counterparts. This
Agreement may be executed in counterparts (and by different parties hereto in
different counterparts), each of which shall constitute an original, but all of
which when taken together shall constitute a single contract.

       

      19.05.                      Headings.  The
headings of each section of this Agreement are for convenience only and shall
not define or limit the provisions thereof.

       

      19.06.                      No Strict
Construction. The parties hereto have participated jointly in the
negotiation and drafting of this Agreement.  In the event an ambiguity
or question of intent or interpretation arises, this Agreement shall be
construed as if drafted jointly by the parties hereto and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the
authorship of any provisions of this Agreement.

       

      19.07.                      Severability.  The
illegality or unenforceability of any provision of this Agreement or any
instrument or agreement required hereunder shall not in any way affect or impair
the legality or enforceability of the remaining provisions of this Agreement or
any instrument or agreement required hereunder.

       

      19.08.                      Survival of
Agreement. All representations, warranties and agreements made by or on
behalf of any Grantor or any other Loan Party in this Agreement and in the other
Loan Documents shall survive the execution and delivery hereof or thereof and
the making and

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      repayment
of the Loan.  In addition, notwithstanding anything herein or under
applicable law to the contrary, the provisions of this Agreement and the other
Loan Documents relating to indemnification or payment of costs and expenses,
including, without limitation, the provisions of Sections 3.1, 3.2,
3.3 and 10.5 of the Credit
Agreement, shall survive the payment in full of the Loan, the termination of the
Commitments and any termination of this Agreement or any of the other Loan
Documents.

       

      19.09.                      Fees and Expenses;
Indemnification.

       

      (a)           The
Grantors, jointly and severally, agree to pay upon demand the amount of any and
all reasonable expenses, including the fees, disbursements and other charges of
counsel and of any experts or agents, which (i) any Secured Creditor may incur
in connection with (x) collecting against any Grantor under the guarantee
contained in Section
2 or otherwise enforcing or preserving any rights under this Agreement
and the other Loan Documents, (y) the exercise, enforcement or protection of any
of the rights of such Secured Creditor hereunder or (z) the failure of any
Grantor to perform or observe any of the provisions hereof, and (ii) the Agent
may incur in connection with (x) the administration of this Agreement (including
the customary fees and charges of such Secured Creditor for any audits conducted
by it or on its behalf with respect to the accounts receivable or inventory) or
(y) the custody or preservation of, or the sale of, collection from or other
realization upon any of the Collateral.

       

      (b)           Each
Grantor agrees to pay, and to save the Secured Creditors 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 any Borrower would be required to do so pursuant
to Section 10.5
of the Credit Agreement.

       

      (c)           The
agreements in this Section shall survive repayment of the Obligations and all
other amounts payable under the Credit Agreement and the other Loan
Documents.

       

      (d)           Each
Grantor agrees that the provisions of Section 3.1 of the
Credit Agreement are hereby incorporated herein by reference, mutatis mutandis,
and each Secured Creditor shall be entitled to rely on each of them as if they
were fully set forth herein.

       

      19.10.                      Binding Effect; Several
Agreement. This Agreement is
binding upon each Grantor and the Secured Creditors and their respective
successors and permitted (in accordance with Section 10.8.1 of the
Credit Agreement) assigns, and shall inure to the benefit of the Grantors, the
Secured Creditors and their respective successors and permitted (in accordance
with Section
10.8.1 of the Credit Agreement) assigns, except that no Grantor shall
have any right to assign or transfer its rights or obligations hereunder or any
interest herein, except as specifically permitted by the Credit Agreement,
without the prior written consent of the Agent (and any such assignment or
transfer shall be void).

       

      19.11.                      Waivers;
Amendment.

       

      (a)           No
failure or delay of the Agent in exercising any power or right hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any
such right or power, or any abandonment or discontinuance of steps to enforce
such a right or power, preclude any other or further exercise thereof or the
exercise of any other right or power.  The

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      rights
and remedies of the Secured Creditors hereunder and of the Secured Creditors
under the Credit Agreement and other Loan Documents are cumulative and are not
exclusive of any rights or remedies that they would otherwise
have.  No waiver of any provisions of this Agreement or consent to any
departure by any Grantor therefrom shall in any event be effective unless the
same shall be permitted by paragraph (b) below, and then such waiver or consent
shall be effective only in the specific instance and for the purpose for which
given.  No notice to or demand on any Grantor in any case shall
entitle such or any other Grantor to any other or further notice or demand in
similar or other circumstances.

       

      (b)           Neither
this Agreement nor any provision hereof may be waived, amended or modified
except pursuant to an agreement or agreements in writing entered into by the
Agent and each affected Grantor; provided, that any
provision of this Agreement imposing obligations on any Grantor may be waived by
the Agent in a written instrument executed by the Agent in accordance with Section 10.1 of the
Credit Agreement.

       

      19.12.                      Set-Off.  Each
Grantor hereby irrevocably authorizes each Secured Creditor at any time and from
time to time while an Event of Default shall have occurred and be continuing,
without notice to such Grantor or any other Grantor, any such notice being
expressly waived by each Grantor, 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 Creditor to or for the
credit or the account of such Grantor, or any part thereof in such amounts as
such Secured Creditor may elect, against and on account of the obligations and
liabilities of such Grantor to such Secured Creditor hereunder and claims of
every nature and description of such Secured Creditor against such Grantor, in
any currency, whether arising hereunder, under the Credit Agreement, any other
Loan Document or otherwise, as such Secured Creditor may elect, whether or not
any Secured Creditor has made any demand for payment and although such
obligations, liabilities and claims may be contingent or
unmatured.  Each Secured Creditor shall notify such Grantor promptly
of any such set-off and the application made by such Secured Creditor of the
proceeds thereof, provided that the failure to give such notice shall not affect
the validity of such set-off and application.  The rights of each
Secured Creditor under this Section are in addition to other rights and remedies
(including, without limitation, other rights of set-off) which such Secured
Creditor may have.

       

      19.13.                      Integration.  This
Agreement and the other Loan Documents constitute the entire contract among the
parties relating to the subject matter hereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter
hereof (except for the Fee Letter).  Without limitation of the
foregoing, this Agreement supersedes and replaces the Amended and Restated
Guarantee and Collateral Agreement without any break in the continuity of the
liabilities of the Grantors incurred thereunder or in the Liens granted pursuant
thereto, subject to any modifications of such liabilities or Liens pursuant
hereto.

       

      19.14.                      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 Creditor 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
Creditors, 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
Creditors or among the Grantors and the Secured Creditors.

       

      19.15.                      Additional Grantors and
Guarantors.  Each Subsidiary of each Borrower that is required
to become a party to this Agreement pursuant to Section 6.8 of either
Credit Agreement shall become a Grantor and Guarantor for all purposes of this
Agreement upon execution and delivery by such Subsidiary of an Assumption
Agreement in the form of Annex 1 hereto.

       

      19.16.                      Releases.

       

      (a)           Notwithstanding
anything to the contrary contained in either Credit Agreement, herein or in any
other Loan Document, upon request of Borrower in connection with any Disposition
of Property permitted by the Loan Documents, the Agent shall (without notice to
or vote or consent of any other Secured Creditor) take such actions as shall be
required to release the Security Interest in any Collateral being Disposed of in
such Disposition, to the extent necessary to permit consummation of such
Disposition in accordance with the Loan Documents, provided that the Borrower
shall have delivered to the Agent, at least five (5) Business Days prior to the
date of the proposed release, a written request for release identifying the
relevant Collateral being Disposed of in such Disposition and the terms of such
Disposition in reasonable detail, including the date thereof, the price thereof
and any estimated expenses in connection therewith, together with a
certification by Borrower stating that such transaction is in compliance with
the Credit Agreement and the other Loan Documents and that the proceeds of such
Disposition will be applied in accordance with the Credit Agreement and the
other Loan Documents.

       

      (b)           At
the request and sole expense of Borrower, a Subsidiary Guarantor shall be
released from its obligations hereunder in the event that all the capital stock
or other equity interests of such Subsidiary Guarantor shall be Disposed of in a
transaction permitted by the applicable Credit Agreement; provided that such
Borrower shall have delivered to the Agent, at least five (5) 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 Disposition
in reasonable detail, including the price thereof and any expenses in connection
therewith, together with a certification by Borrower stating that such
transaction is in compliance with the Credit Agreement and the other Loan
Documents and that the Proceeds of such Disposition will be applied in
accordance therewith.

       

      19.17.                      Intercompany
Debt.

       

      (a)           Each
Grantor hereby agrees that any intercompany Debt or other intercompany payables
or receivables directly or indirectly made by or owed to such Grantor by any
other Grantor (collectively, “Intercompany Debt”),
of whatever nature at any time outstanding shall be subordinate and subject in
right of payment to the prior payment in full in cash of the Borrower
Obligations.  Each Grantor hereby agrees that following a single
written notice to Borrower, such Grantor will not, while any Event of Default is
continuing, accept any payment, including by offset, on any Intercompany Debt
until all Secured Obligations have been

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      paid in
full and the Commitments have been terminated, in each case, except with the
prior written consent of the Agent.

       

      (b)           In
the event that any payment on any Intercompany Debt shall be received by a
Grantor other than as permitted by this Section 19.17 before
all Secured Obligations have been paid in full, the Commitments have been
terminated pursuant to each Credit Agreement, such Grantor shall receive such
payments and hold the same in trust for, segregate the same from its own assets
and shall immediately pay over to, the Agent for the benefit of the Agent and
Lenders all such sums to the extent necessary so that the Agent and the Lenders
shall have been paid in full, in cash, all Borrower Obligations owed or which
may become owing.

       

      (c)           Upon
any payment or distribution of any assets of any Grantor of any kind or
character, whether in cash, property or securities by set-off, recoupment or
otherwise, to creditors in any liquidation or other winding-up of such Grantor
or in the event of any case, proceeding or other action described in Section 8.1.3 of
either Credit Agreement, the Agent and Lenders shall first be entitled to
receive payment in full in cash, in accordance with the terms of the Borrower
Obligations and of this Agreement, of all amounts payable under or in respect of
such Borrower Obligations, before any payment or distribution is made on, or in
respect of, any Intercompany Debt, in any such case, proceeding or other action,
any distribution or payment, to which the Agent or any Lender would be entitled
except for the provisions hereof shall be paid by such Grantor, or by any
receiver, trustee in bankruptcy, liquidating trustee, agent or other person
making such payment or distribution directly to the Agent (for the benefit of
the Agent and the Lenders) to the extent necessary to pay all such Borrower
Obligations in full in cash, after giving effect to any concurrent payment or
distribution to the Agent and Lenders (or to the Agent for the benefit of the
Agent and Lenders).

       

      

       

      [Remainder
of Page Intentionally Left Blank; Signature Pages Follow]

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF, each of the undersigned has caused this Amended and Restated
Guarantee and Collateral Agreement to be duly executed and delivered as of the
date first above written.

       

      GRANTORS:

      

      

      PNG
VENTURES, INC.

      

      

      By: /s/ Kevin Markey    

      Name:  Kevin
Markey

      Title:                      Chief
Executive Officer

      

      

      NEW EARTH
LNG, LLC.

      

      

      By: /s/ Kevin Markey    

      Name:  Kevin
Markey

      Title:                      President

      

      

      APPLIED
LNG TECHNOLOGIES USA, L.L.C.

      

      By:           New
Earth LNG, LLC

      Its sole member

      

      

      By: /s/ Kevin Markey    

      Name:  Kevin
Markey

      Title:                      President

      

      

      FLEET
STAR, INC.

      

      

      By: /s/ Dennis G. McLaughlin, III    

      Name:  Dennis
G. McLaughlin, III

      Title:                      Chief
Executive Officer

      

      

      EARTH
LEASING, INC.

      

      

      By: /s/ Dennis G. McLaughlin, III    

      Name:  Dennis
G. McLaughlin, III

      Title:                      Chief
Executive Officer

      
        
          
            Guarantee
and Collateral Agreement Signature Pages

            

          

           

        

        
           

          
            

          

        

        
           

        

      

      

      

      ARIZONA
LNG, L.L.C.

      

      By:           New
Earth LNG, LLC

      Its sole member

      

      

      By: /s/ Kevin Markey    

      Name:  Kevin
Markey

      Title:                      President

      

       

      
        
          
            Guarantee and Collateral Agreement
Signature Pages 

          

           

        

        
           

          
            

          

        

        
           

        

      

      Accepted:                      as
to Sections 9.02 and 9.03

       

      FOURTH
THIRD LLC,

      as
Agent

       

      
        	
                 
      

              	
                By:
      /s/ Seth R. Taube    

              

      

      
        	
                 
      

              	
                Name:
      Seth R. Taube

              

      

      
        	
                 
      

              	
                Title:  Authorized
      Signatory

              

      

       

      

      
        
          
            Guarantee and Collateral Agreement
Signature Pages 

          

           

        

        
           

          
            

          

        

        
           

        

      

      Schedule
7.07(a)

      Principal
Deposit Accounts

      

      
        	
                Grantor

              	
                Account Bank

              	
                Account
Number

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Exhibit
A to Guarantee and Collateral Agreement

       

      PERFECTION
CERTIFICATE

       

      

      [REDACTED]

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Exhibit
B to Guarantee and Collateral Agreement

      

      SUPPLEMENT
TO GUARANTEE AND COLLATERAL AGREEMENT

      (COPYRIGHTS)

      

      WHEREAS,
[                        ],
a
[               ]
corporation (herein referred to as “Grantor”), having an
address at
[                          ],
has adopted, used and is using the copyrights listed on the annexed
Schedule 1-A, which copyrights are registered in the United States
Copyright Office (the “Copyrights”);

       

      WHEREAS, the Grantor has
entered into a Guarantee and Collateral Agreement (said Guarantee and Collateral
Agreement, as it may hereafter be amended or otherwise modified from time to
time being the “Security Agreement”,
the terms defined therein and not otherwise defined herein being used herein as
therein defined) in favor of the Secured Party; and

       

      WHEREAS, pursuant to the Security
Agreement, the Grantor has granted to Secured Party a security interest in all
right, title and interest of the Grantor in and to the Copyrights, and the
registrations and recordings thereof in the United States Copyright Office or
any other country or any political subdivision thereof, all whether now or
hereafter owned or licensable by the Grantor and all extensions or renewals
thereof and all Copyright Licenses, and all proceeds of all of the foregoing,
including, without limitation, any claims by the Grantor against third parties
for infringement thereof (the “Collateral”), to
secure the payment and performance of the Secured Obligations.

       

      NOW, THEREFORE, for good and
valuable consideration, receipt of which is hereby acknowledged, the Grantor
does hereby further confirm, and put on the public record, its grant to Secured
Party of a security interest in and mortgage on the Collateral to secure the
prompt payment and performance of the Secured Obligations.

       

      The
Grantor does hereby further acknowledge and affirm that the rights and remedies
of Secured Party with respect to the assignment of and grant of a security
interest in the Collateral made hereby are more fully set forth in the Security
Agreement, the terms and provisions of which are hereby incorporated herein by
reference as if fully set forth herein.

       

      Secured
Party’s address is [___________________],
Attention:  ______________.

       

      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      IN WITNESS WHEREOF, the Grantor has duly
executed or caused this Agreement to be duly executed as of
[          ].

       

      [                             ]

       

      By:           ............................................

      Name:

      Title:

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      STATE
OF                                           )

      )
ss.:

      COUNTY
OF                                           )

       

      On this
____ day of __________, ____, before me personally appeared __________________,
to me known, who, being by me duly sworn, did depose and say that he/she resides
at _________________________________________ and that he/she is _______________
of the Grantor; that he/she knows the seal of said corporation; that the seal
affixed to said instrument is such corporate seal; that it was affixed pursuant
to authority of the Board of Directors of said corporation and that he/she
signed his/her name thereto in his/her capacity as an authorized officer of said
corporation pursuant to such authority.

       

      ____________________________

      Notary
Public

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Schedule
1-A to the SUPPLEMENT TO GUARANTEE

      AND
COLLATERAL AGREEMENT

      (COPYRIGHTS)

      

      

      
        	
                Copyright

              	 
      	
                Registration
      Date

              	 
      	
                Registration
      No.

              
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      

      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Exhibit
C to Guarantee and Collateral Agreement

       

      SUPPLEMENT
TO GUARANTEE AND COLLATERAL AGREEMENT

       

      (PATENTS)

       

      WHEREAS,
[                        ],
a
[               ]
corporation (herein referred to as “Grantor”), having an
address at
[                          ],
owns the letters patent and/or applications for letters patent of the United
States of America more particularly described on Schedule 1-A annexed hereto as
part hereof (the “Patents”);

       

      WHEREAS, the Grantor has
entered into a Guarantee and Collateral Agreement (said Guarantee and Collateral
Agreement, as it may hereafter be amended or otherwise modified from time to
time being the “Security Agreement”,
the terms defined therein and not otherwise defined herein being used herein as
therein defined) in favor of the Secured Party; and

       

      WHEREAS, pursuant to the
Security Agreement, the Grantor has granted to Secured Party a security interest
in all right, title and interest of Grantor in and to the Patents, together with
all registrations and recordings thereof, including, without limitation,
applications, registrations and recordings 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, all
whether now or hereafter owned or licensable by Grantor, and all reissues,
divisions, continuations, continuations-in-part, term restorations or extensions
thereof, all Patent Licenses and all proceeds of all of the foregoing,
including, without limitation, any claims by Grantor against third parties for
infringement thereof for the full term of the Patents (the “Collateral”), to
secure the prompt payment and performance of the Secured
Obligations.

       

      NOW, THEREFORE, for good and
valuable consideration, receipt of which is hereby acknowledged, the Grantor
does hereby further confirm, and put on the public record, its grant to Secured
Party of a security interest in and mortgage on the Collateral to secure the
prompt payment and performance of the Secured Obligations.

       

      The
Grantor does hereby further acknowledge and affirm that the rights and remedies
of Secured Party with respect to the assignment of and grant of a security
interest in the Collateral made hereby are more fully set forth in the Security
Agreement, the terms and provisions of which are hereby incorporated herein by
reference as if fully set forth herein.

       

      Secured
Party’s address is[________________________],
Attention:  ______________.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      IN WITNESS WHEREOF, the Grantor has duly
executed or caused this Agreement to be duly executed as of
[          ].

       

      [                            ]

       

      By:           ............................................

      Name:

      Title:

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      STATE
OF                                           )

      )
ss.:

      COUNTY
OF                                           )

       

      On this
____ day of ____________, before me personally appeared ________________, to me
known, who, being by me duly sworn, did depose and say that he/she resides at
_________________________________________ and that he/she is _______________ of
the Grantor; that he/she knows the seal of said corporation; that the seal
affixed to said instrument is such corporate seal; that it was affixed pursuant
to authority of the Board of Directors of said corporation and that he/she
signed his/her name thereto in his/her capacity as an authorized officer of said
corporation pursuant to such authority.

       

      ____________________________

      Notary
Public

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Schedule
1-A to the SUPPLEMENT TO GUARANTEE

      AND
COLLATERAL AGREEMENT

      (PATENTS)

      

      

      
        	
                Title

              	 
      	
                Date
      Filed

                or
      Granted

              	 
      	
                Serial
      No. or

                Patent
      No.

              
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Exhibit
D to Guarantee and Collateral Agreement

       

      SUPPLEMENT
TO GUARANTEE AND COLLATERAL AGREEMENT

       

      (TRADEMARKS)

       

      WHEREAS,
[                        ],
a
[               ]
corporation (herein referred to as “Grantor”), having an
address at
[                          ],
(1) has adopted, used and is using, or (2) has intended to use and
filed an application indicating that intention, but has not yet filed an
allegation of use under Section l(c) or l(d) of the Trademark Act, or (3)
has filed an application based on an intention to use and has since used and has
filed an allegation of use under Section l(c) or l(d) of the Trademark Act,
the trademarks, trade names, trade styles and service marks listed on the
annexed Schedule 1-A, which trademarks, trade names, trade styles and service
marks are registered, or for which applications for registration have been filed
in the United States Patent and Trademark Office (the “Trademarks”);
and

       

      WHEREAS, the Grantor has
entered into a Guarantee and Collateral Agreement (said Guarantee and Collateral
Agreement, as it may hereafter be amended or otherwise modified from time to
time being the “Security Agreement”,
the terms defined therein and not otherwise defined herein being used herein as
therein defined) in favor of the Secured Party; and

       

      WHEREAS, pursuant to the
Security Agreement, the Grantor has granted to Secured Party a security interest
in all right, title and interest of the Grantor in and to the Trademarks,
together with all prints and labels on which said Trademarks have appeared or
appear, designs and general intangibles of like nature, now existing or
hereafter adopted or acquired, and the goodwill of the business symbolized by
the Trademarks and the applications, registrations and recordings in the United
States Patent and Trademark Office or in any similar office or agency of the
United States of America, any State thereof, or any other country or any
political subdivision thereof, all whether now or hereafter owned or licensable
by Grantor, and all reissues, extensions or renewals thereof, all Trademark
Licenses and all proceeds of all of the foregoing, including, without
limitation, any claims by Grantor against third parties for infringement thereof
(the “Collateral”), to
secure the payment and performance of the Secured Obligations.

       

      NOW, THEREFORE, for good and
valuable consideration, receipt of which is hereby acknowledged, the Grantor
does hereby further confirm, and put on the public record, its grant to Secured
Party of a security interest in and mortgage on the Collateral to secure the
prompt payment and performance of the Secured Obligations.

       

      The
Grantor does hereby further acknowledge and affirm that the rights and remedies
of Secured Party with respect to the grant of, security interest in and mortgage
on the Collateral made hereby are more fully set forth in the Security
Agreement, the terms and provisions of which are hereby incorporated herein by
reference as if fully set forth herein.

       

      Secured
Party’s address is [___________________________],
Attention:  ______________.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      IN WITNESS WHEREOF, the Grantor has duly
executed or caused this Agreement to be duly executed as of
[          ].

      

      [                              ]

       

      By:           ............................................

      Name:

      Title:

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      STATE
OF                                           )

      )
ss.:

      COUNTY
OF                                           )

       

      On this
____ day of _________, ____, before me personally appeared ___________________,
to me known, who, being by me duly sworn, did depose and say that he/she resides
at _________________________________________ and that he/she is _______________
of the Grantor; that he/she knows the seal of said corporation; that the seal
affixed to said instrument is such corporate seal; that it was affixed pursuant
to authority of the Board of Directors of said corporation and that he/she
signed his/her name thereto in his/her capacity as an authorized officer of said
corporation pursuant to such authority.

       

      ____________________________

      Notary
Public

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Schedule
1-A to the SUPPLEMENT TO GUARANTEE

      AND
COLLATERAL AGREEMENT

      (TRADEMARKS)

      

      

      
        	
                Trademark

              	 
      	
                Application
      or Registration Date

              	 
      	
                Application
      Serial No. or Registration No.

              
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      

      

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Exhibit
E to Guarantee and Collateral Agreement

       

      FORM
OF CONTROL AGREEMENT

       

      This
CONTROL AGREEMENT (as amended, supplemented or otherwise modified from time to
time, this “Control
Agreement”) dated as of _______________, 200__, is made by and among
_______________, a __________ corporation (the “Grantor”), Fourth
Third LLC, as Agent (in such capacity, the “Agent”) for the
Secured Creditors (as defined in the Guarantee and Collateral Agreement referred
to below), and ____________, a ____________ (the “Depository
Bank”).

       

      WHEREAS,
the Depository Bank maintains for the Grantor a deposit account, Account No.
_________________ (the “Pledged Account”), in
the name of the Grantor.

       

      WHEREAS,
the Grantor has granted to the Agent for the benefit of the Secured Creditors a
security interest in the Pledged Account, all claims arising therefrom, all
funds now or hereafter therein, all amounts now or hereafter credited thereto
and all Proceeds thereof (collectively, the “Collateral”) pursuant
to a Guarantee and Collateral Agreement, dated as of June __, 2008, (as amended,
supplemented, replaced or otherwise modified from time to time, the “Guarantee and Collateral
Agreement”), by the Grantor and the other persons party thereto as
grantors in favor of the Agent.

       

      WHEREAS,
the following terms which are defined in Article 9 of the Uniform Commercial
Code in effect in the State of New York on the date hereof (the “UCC”) are used herein
as so defined (whether or not such terms are capitalized in the
UCC):  Bank, Bank’s Jurisdiction, Control, Deposit Account and
Proceeds.

       

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

       

      SECTION
1.  Notice
of Security Interest.  The Grantor, the Agent and the
Depository Bank are entering into this Control Agreement to perfect, and to
confirm the priority of, the Agent’s security interest in the
Collateral.  The Depository Bank acknowledges that this Control
Agreement constitutes written notification to the Depository Bank of the Agent’s
security interest in the Collateral.  The Depository Bank agrees to
promptly make all necessary entries or notations in its books and records to
reflect the Agent’s security interest in the Collateral.  The
Depository Bank acknowledges that the Agent has control over the Pledged
Account, all claims arising therefrom, all funds now or hereafter therein all
amounts now or hereafter credited thereto and all Proceeds thereof.

       

      SECTION
2.  Collateral; Pledged
Account.  (a) The Grantor agrees with the Agent and the
Depository Bank that the Grantor will direct that, all funds transferred by the
Grantor to the Depository Bank, deposited by the Grantor with the Depository
Bank, or otherwise held by the Depository Bank for the Grantor, be credited to
the Pledged Account, another deposit account with the Depository Bank subject to
a Control Agreement or, in accordance with Section 7.07 of the
Guarantee and Collateral Agreement, a zero balance payroll or similar
disbursement account.

       

      (b)           The
Depository Bank hereby represents and warrants to, and agrees with the Grantor
and the Agent, that (i) the Depository Bank is a Bank, (ii) the Pledged Account
is and shall remain a Deposit Account, (iii) the Bank’s Jurisdiction is, and
during the term of this

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Control
Agreement shall remain, the State of New York and (iv) Schedule 1 contains a
true and complete statement of the Pledged Account and credit balance therein as
of the date hereof.  The Depository Bank will not, so long as this
Control Agreement is in effect, enter into any agreement with any other person
that provides Control over the Pledged Account to such person.  The
Depository Bank will not advance credit to the Grantor secured by the Collateral
(other than the fees and charges referred to in Section 7).

       

      (c)           The
Agent hereby instructs the Depository Bank, and the Depository Bank hereby
confirms and agrees that, unless the Agent shall otherwise direct the Depository
Bank in writing, all funds transferred by the Grantor to the Depository Bank,
deposited by the Grantor with the Depository Bank, or otherwise held by the
Depository Bank for the Grantor shall be credited to the Pledged Account,
another deposit account with the Depository Bank subject to a Control Agreement
or a zero balance payroll or similar disbursement account with the Depository
Bank.

       

      SECTION
3.  Control.  The
Depository Bank hereby agrees, upon written direction from the Agent and without
further consent from the Grantor, (a) to comply with all instructions originated
by the Agent directing disposition of the funds in the Pledged Account and all
other instructions regarding the Pledged Account originated by the Agent and to
the extent directed by the Agent and to pay over to the Agent all proceeds
without any setoff or deduction, and (b) except as otherwise directed by the
Agent, not to comply with the instructions or directions of any kind originated
by the Grantor or any other person regarding the Pledged Account or disposition
of the funds therein; provided, however, that
notwithstanding the foregoing provisions of this paragraph (b), the Depository
Bank may comply with instructions regarding disposition of funds in the Pledged
Account originated by the Grantor except during any period beginning at the time
that the Depository Bank has received from the Agent a notice, substantially in
the form of Exhibit
1 hereto (a “Notice of Default”)
and ending at the time that the Depository Bank has received from the Agent a
written notice withdrawing such Notice of Default.

       

      SECTION
4.  Other
Agreements; Termination.  The Depository Bank shall
simultaneously send to the Agent copies of all notices given and statements
rendered pursuant to the Pledged Account.  The Depository Bank shall
notify promptly the Agent and the Grantor if any other person asserts any lien,
encumbrance, claim (including any adverse claim) or security interest in or
against any of the Collateral.  As long as the Guarantee and
Collateral Agreement remains in effect, neither the Grantor nor the Depository
Bank shall terminate the Pledged Account without thirty (30) days’ prior written
notice to the other party and the Agent.  In the event of any conflict
between the provisions of this Control Agreement and any other agreement
governing the Pledged Account or the Collateral, the provisions of this Control
Agreement shall control.

       

      SECTION
5.  Protection of Depository
Bank.  The Depository Bank may rely and shall be protected in
acting upon any notice, instruction or other communication that it reasonably
believes to be genuine and authorized.

       

      SECTION
6.  Termination.  This
Control Agreement shall terminate automatically upon receipt by the Depository
Bank of written notice executed by the Agent terminating this
Agreement.

       

      SECTION
7.  Waiver;
Priority of Agent’s Interests.  Other than with respect to its
fees and customary charges with respect to the Pledged Account, the Depository
Bank hereby waives

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      its right
to set off any obligations of the Grantor to the Depository Bank against any or
all of the Collateral and hereby agrees that any and all liens, encumbrances,
claims or security interests which the Depository Bank may have against the
Collateral, either now or in the future in connection with the Pledged Account
(other than in respect of such fees and customary charges) are and shall be
subordinate and junior to the prior payment in full in immediately available
funds of all obligations of the Grantor now or hereafter existing under the
Credit Agreement, the Guarantee and Collateral Agreement, and all other
documents related thereto, whether for principal, interest (including, without
limitation, interest as provided in the Credit Agreement, whether or not such
interest accrues after the filing of such petition for purposes of the federal
Bankruptcy Code or is an allowed claim in such proceeding), indemnities, fees,
premiums, expenses or otherwise.  Except for the foregoing and claims
and interests of the Agent and the Grantor in the Collateral and the rights of
the Depository Bank therein, the Depository Bank does not know of any claim to
or security interest or other interest in the Collateral.

       

      SECTION
8.  Exculpation and
Indemnity.  The Depository Bank shall not be liable, except for
its own gross negligence or willful misconduct or its breach of the express
terms of this Control Agreement and, except with respect to claims based upon
such gross negligence or willful misconduct or any such breach that are
successfully asserted against the Depository Bank, the Grantor shall indemnify
and hold harmless the Depository Bank (and any successor Depository Bank) from
and against any and all losses, liabilities, claims, actions, damages and
expenses, including reasonable attorneys’ fees and disbursements arising out of
and in connection with this Control Agreement.

       

      SECTION
9.  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 days after being deposited in the mail, postage prepaid, or,
in the case of telecopy notice, when received, to the Grantor’s and the Agent’s
addresses as set forth in the Guarantee and Collateral Agreement, and to the
Depository Bank’s address as set forth below, or to such other address as any
party may give to the others in writing for such purpose:

       

      [Name of
Depository Bank]

       

      [Address
of Depository Bank]

       

      Attention:___________________

       

      Telephone:  (  )
_____________________

       

      Telecopy:  (  )
_____________________

       

      SECTION
10.  Amendments in
Writing.  None of the terms or provisions of this Control
Agreement may be waived, amended, supplemented or otherwise modified except by a
written instrument executed by the parties hereto.

       

      SECTION
11.  Entire
Agreement.  This Control Agreement and the Guarantee and
Collateral Agreement constitute the entire agreement and supersede all other
prior agreements and understandings, both written and oral, among the parties
with respect to the subject matter hereof.

       

      SECTION
12.  Execution in
Counterparts.  This Control Agreement may be executed in any
number of counterparts (including by telecopy), each of which when so executed
shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      SECTION
13.  Successors and
Assigns.  This Control Agreement will be binding upon and inure
to the benefit of the parties hereto and their respective successors and
assigns, except that the Grantor may not assign, transfer or delegate any of its
rights or obligations under this Control Agreement without the prior written
consent of the Agent.

       

      SECTION
14.  Governing Law and
Jurisdiction.  This Control Agreement has been delivered to and
accepted by the Agent and will be deemed to be made in the State of New
York.  THIS CONTROL AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
YORK.  Each of the parties hereto submits for itself and its property
in any legal action or proceeding relating to this Control Agreement, 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, the
courts of the United States of America for the Southern District of New York,
and appellate courts from any thereof.

       

      SECTION
15.  WAIVER
OF JURY TRIAL.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING
RELATING TO THIS CONTROL AGREEMENT AND FOR ANY COUNTERCLAIM
THEREIN.

       

      IN
WITNESS WHEREOF, each of the undersigned has caused this Control Agreement to be
duly executed and delivered as of the date first above written.

       

      
        	
                 
      

              	
                [NAME
      OF GRANTOR]

              

      

       

      By:___________________________

      Name:

      Title:

       

      
        	
                 
      

              	
                FOURTH
      THIRD LLC, as

              

      

      
        	
                 
      

              	
                Agent

              

      

       

      By:___________________________

      Name:

      Title:

       

      
        	
                 
      

              	
                 [NAME
      OF DEPOSITORY BANK]

              

      

       

      By:___________________________

      Name:

      Title:

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                Exhibit
      1 to Control Agreement

              

      

      

      
        	
                 
      

              	
                [Date]

              

      

      

      

      To:  [Name
of Depository Bank

      Address of Depository
Bank]

      

      Attention:

      Telecopy:

      

      Dear_______;

      

      We refer
to the Control Agreement, dated _______ (as heretofore amended, modified or
supplemented, the “Control Agreement”)
by and among [Name of Depository Bank,] [name of Grantor] and
us.  Except as otherwise provided herein, terms defined in the Control
Agreement, when used herein, shall have the respective meanings therein
provided.

      

      This
constitutes a Notice of Default under and as such term is defined in the Control
Agreement.  Until the Depository Bank receives a written notice from
us withdrawing this Notice of Default, the Depository Bank shall not comply with
any instructions regarding disposition of funds in the Pledged
Account.

      

      Very
truly yours,

      

      FOURTH
THIRD LLC,

      as
Agent

      

      

      By:_______________________

          Name:

          Title:

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Exhibit
F to Guarantee and Collateral Agreement

       

      FORM
OF CONTROL AGREEMENT

       

      This
CONTROL AGREEMENT (as amended, supplemented or otherwise modified from time to
time, this “Control
Agreement”) dated as of ______________, 200__ is made by and among
_______________, a __________ corporation (the “Grantor”), Fourth
Third LLC, as Agent (in such capacity, the “Agent”) for the
Secured Creditors (as defined in the Guarantee and Collateral Agreement referred
to below), and ____________, a ____________ corporation (the “Issuer”).

       

      WHEREAS,
the Grantor has granted to the Agent for the benefit of the Secured Creditors a
security interest in the uncertificated securities of the Issuer owned by the
Grantor from time to time (collectively, the “Pledged Securities”),
and all additions thereto and substitutions and Proceeds thereof (collectively,
with the Pledged Securities, the “Collateral”) pursuant
to a Guarantee and Collateral Agreement, dated as of June __, 2008 (as amended,
supplemented, replaced or otherwise modified from time to time, the “Guarantee and
Collateral Agreement”), by the
Grantor and the other persons party thereto as grantors in favor of the
Agent.

       

      WHEREAS,
the following terms which are defined in Articles 8 and 9 of the Uniform
Commercial Code in effect in the State of New York on the date hereof (the
“UCC”) are used
herein as so defined (whether or not such terms are capitalized in the
UCC):  Adverse Claim, Control, Instruction, Issuer’s Jurisdiction,
Proceeds and Uncertificated Security.

       

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

       

      SECTION
1.  Notice
of Security Interest.  The Grantor, the Agent and the Issuer
are entering into this Control Agreement to perfect, and to confirm the priority
of, the Agent’s security interest in the Collateral.  The Issuer
acknowledges that this Control Agreement constitutes written notification to the
Issuer of the Agent’s security interest in the Collateral.  The Issuer
agrees to promptly make all necessary entries or notations in its books and
records to reflect the Agent’s security interest in the Collateral and, upon
request by the Agent, to register the Agent as the registered owner of any or
all of the Pledged Securities.  The Issuer acknowledges that the Agent
has control over the Collateral.

       

      SECTION
2.  Collateral.  The
Issuer hereby represents and warrants to, and agrees with the Grantor and the
Agent that (i) the terms of any limited liability company interests or
partnership interests included in the Collateral from time to time shall
expressly provide that they are securities governed by Article 8 of the Uniform
Commercial Code in effect from time to time in the State of [__________], (ii)
the Pledged Securities are Uncertificated Securities, (iii) the Issuer’s
Jurisdiction is, and during the term of this Control Agreement shall remain, the
State of [____________], (iv) Schedule 1 contains a
true and complete description of the Pledged Securities as of the date hereof
and (v) except for the claims and interests of the Agent and the Grantor in the
Collateral, the Issuer does not know of any claim to or security interest or
other interest in the Collateral.

       

      SECTION
3.  Control.  The
Issuer hereby agrees, upon written direction from the Agent and without further
consent from the Grantor, (a) to comply with all Instructions and directions of
every kind originated by the Agent concerning the Collateral, to liquidate or
otherwise dispose of

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      the
Collateral as and to the extent directed by the Agent and to pay over to the
Agent all Proceeds of the Collateral without any setoff or deduction, and (b)
except as otherwise directed by the Agent, not to comply with the Instructions
or directions of any kind originated by the Grantor or any other person with
respect to the Collateral.

       

      SECTION
4.  Other
Agreements.  The Issuer shall notify promptly the Agent and the
Grantor if any other person asserts any lien, encumbrance, claim (including any
adverse claim) or security interest in or against any of the
Collateral.  In the event of any conflict between the provisions of
this Control Agreement and any other agreement governing the Pledged Securities
or the Collateral, the provisions of this Control Agreement shall
control.

       

      SECTION
5.  Protection of
Issuer.  The Issuer may rely and shall be protected in acting
upon any notice, instruction or other communication that it reasonably believes
to be genuine and authorized.

       

      SECTION
6.  Termination.  This
Control Agreement shall terminate automatically upon receipt by the Issuer of
written notice executed by the Agent terminating this Agreement.

       

      SECTION
7.  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 days after being deposited in the mail, postage prepaid, or,
in the case of telecopy notice, when received, to the Grantor’s and the Agent’s
addresses as set forth in the Guarantee and Collateral Agreement, and to the
Issuer’s address as set forth below, or to such other address as any party may
give to the others in writing for such purpose:

       

      [Name of
Issuer]

       

      [Address
of Issuer]

       

      Attention:
______________________

       

      Telephone:  (  )
__________________

       

      Telecopy:  (  )
___________________

       

      SECTION
8.  Amendments in
Writing.  None of the terms or provisions of this Control
Agreement may be waived, amended, supplemented or otherwise modified except by a
written instrument executed by the parties hereto.

       

      SECTION
9.  Entire
Agreement.  This Control Agreement and the Guarantee and
Collateral Agreement constitute the entire agreement and supersede all other
prior agreements and understandings, both written and oral, among the parties
with respect to the subject matter hereof.

       

      SECTION
10.  Execution in
Counterparts.  This Control Agreement may be executed in any
number of counterparts (including by telecopy), each of which when so executed
shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement.

       

      SECTION
11.  Successors and
Assigns.  This Control Agreement will be binding upon and inure
to the benefit of the parties hereto and their respective successors and
assigns, except that the Grantor may not assign, transfer or delegate any of its
rights or obligations under this Control Agreement without the prior written
consent of the Agent.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      SECTION
12.  Governing Law and
Jurisdiction.  This Control Agreement has been delivered to and
accepted by the Agent and will be deemed to be made in the State of New
York.  THIS CONTROL AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
YORK.  Each of the parties hereto submits for itself and its property
in any legal action or proceeding relating to this Control Agreement, 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, the
courts of the United States of America for the Southern District of New York,
and appellate courts from any thereof.

       

      SECTION
13.  WAIVER
OF JURY TRIAL.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING
RELATING TO THIS CONTROL AGREEMENT AND FOR ANY COUNTERCLAIM
THEREIN.

       

      IN
WITNESS WHEREOF, each of the undersigned has caused this Control Agreement to be
duly executed and delivered as of the date first above written.

       

      
        	
                 
      

              	
                [NAME
      OF GRANTOR]

              

      

       

      By:___________________________

      Name:

      Title:

       

      
        	
                 
      

              	
                FOURTH
      THIRD LLC, as

              

      

      
        	
                 
      

              	
                Agent

              

      

       

      By:___________________________

      Name:

      Title:

      

       

      
        	
                 
      

              	
                [NAME
      OF ISSUER]

              

      

       

      By:___________________________

      Name:

      Title:

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Exhibit
G to Guarantee and Collateral Agreement

       

      FORM
OF CONTROL AGREEMENT

       

      This
CONTROL AGREEMENT (as amended, supplemented or otherwise modified from time to
time, this “Control
Agreement”) dated as of ______________, 200__, is made by and among
_______________, a __________ corporation (the “Grantor”), Fourth
Third LLC, as Agent (in such capacity, the “Agent”) for the
Secured Creditors (as defined in the Guarantee and Collateral Agreement referred
to below), and ____________, a ____________ corporation (the “Broker”).

       

      WHEREAS,
the Broker maintains for the Grantor a securities account,
Account No. _________________ (the “Pledged Account”), in
the name of the Grantor.

       

      WHEREAS,
the Grantor has granted to the Agent for the benefit of the Secured Creditors a
security interest in the Pledged Account, the financial assets and any free
credit balance carried therein, all security entitlements with respect thereto,
and all additions thereto and substitutions and Proceeds thereof (collectively,
the “Collateral”) pursuant
to a Guarantee and Collateral Agreement, dated as June __, 2008 (as amended,
supplemented, replaced or otherwise modified from time to time, the “Guarantee and Collateral
Agreement”), by the Grantor and the other persons party thereto as
grantors in favor of the Agent.

       

      WHEREAS,
the following terms which are defined in Articles 8 and 9 of the Uniform
Commercial Code in effect in the State of New York on the date hereof (the
“UCC”) are used
herein as so defined (whether or not such terms are capitalized in the
UCC):  Adverse Claim, Commodity Account, Commodity Contract, Control,
Entitlement Order, Financial Asset, Investment Property, Proceeds, Securities
Account, Securities Intermediary, Securities Intermediary’s Jurisdiction and
Security Entitlement.

       

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

       

      SECTION
1.  Notice
of Security Interest.  The Grantor, the Agent and the Broker
are entering into this Control Agreement to perfect, and to confirm the priority
of, the Agent’s security interest in the Collateral.  The Broker
acknowledges that this Control Agreement constitutes written notification to the
Broker of the Agent’s security interest in the Collateral.  The Broker
agrees to promptly make all necessary entries or notations in its books and
records to reflect the Agent’s security interest in the
Collateral.  The Broker acknowledges that the Agent has control over
the Pledged Account, all Financial Assets contained therein from time to time,
and all Security Entitlements with respect thereto.

       

      SECTION
2.  Collateral; Pledged
Account.  (a) The Grantor hereby agrees with the Agent and the
Broker that that Grantor shall direct that all Investment Property (other than
any Commodity Contract or Commodity Account) held by the Broker for the Grantor
be credited to the Pledged Account or another securities account subject to a
Control Agreement maintained with the Broker.

       

      (b)           The
Broker hereby represents and warrants to, and agrees with the Grantor and the
Agent that (i) the Broker is a Securities Intermediary with respect to the
Grantor and the Pledged Account is a Securities Account, (ii) all assets,
property and items from time to time

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      carried
in the Pledged Account, including, without limitation, any Investment Property,
are, and will continue to be, Financial Assets, (iii) the Securities
Intermediary’s Jurisdiction is, and during the term of this Control Agreement
shall remain, the State of New York, (iv) Schedule 1 contains a
true and complete statement of the Pledged Account and the Financial Assets
carried therein and any free credit balance therein as of the date hereof,
(v) no Financial Asset included in the Collateral is registered in the name
of, payable to the order of, or specially indorsed to, the Grantor, which has
not been indorsed to the Broker or in blank, and (vi) the Pledged Account
is and shall remain a cash account, and the Broker will not extend, directly or
indirectly, any “purpose credit” (within the meaning of such term under
Regulation T of the Board of Governors of the Federal Reserve System of the
United States) to the Grantor in respect of the Pledged Account.  The
Brokers will not, so long as this Control Agreement is in effect, enter into any
agreement with any other Person that provides Control over the Pledged Account
to such other Person.

       

      (c)           The
Agent hereby instructs the Broker, and the Broker hereby confirms and agrees
that, unless the Agent shall otherwise direct the Broker in writing, the
Investment Property (other than any Commodity Contract or Commodity Account)
from time to time held by the Broker for the Grantor shall be credited only to,
and carried only in, the Pledged Account or another securities account subject
to a Control Agreement maintained with the Broker.

       

      SECTION
3.  Control.  The
Broker hereby agrees, upon written direction from the Agent and without further
consent from the Grantor, (a) to comply with all instructions, Entitlement
Orders and directions of every kind originated by the Agent concerning the
Collateral, to liquidate or otherwise dispose of the Collateral as and to the
extent directed by the Agent and to pay over to the Agent all proceeds without
any setoff or deduction, and (b) except as otherwise directed by the Agent, not
to comply with the instructions, Entitlement Orders or directions of any kind
originated by the Grantor or any other person.

       

      SECTION
4.  Other
Agreements; Termination; Successor Brokers.  The Broker shall
simultaneously send to the Agent copies of all notices given and statements
rendered pursuant to the Pledged Account.  The Broker shall notify
promptly the Agent and the Grantor if any other person asserts any lien,
encumbrance, claim (including any adverse claim) or security interest in or
against any of the Collateral.  As long as the Guarantee and
Collateral Agreement remains in effect, neither the Grantor nor the Broker shall
terminate the Pledged Account without thirty (30) days’ prior written notice to
the other party and the Agent.  In the event of any conflict between
the provisions of this Control Agreement and any other agreement governing the
Pledged Account or the Collateral, the provisions of this Control Agreement
shall control.  In the event the Broker no longer serves as Broker for
the Collateral, the Pledged Account and the Financial Assets carried therein
shall be transferred to a successor broker or custodian satisfactory to the
Agent, provided, that prior to such transfer, such successor broker or custodian
shall execute an agreement that is substantially in the form of this Control
Agreement or is otherwise in form and substance satisfactory to the
Agent.

       

      SECTION
5.  Protection of Broker
Indemnification.  The Broker may rely and shall be protected in
acting upon any notice, instruction or other communication that it reasonably
believes to be genuine and authorized.  The Broker shall not be
liable, except for its own gross negligence or willful misconduct or its breach
of the express terms of this Control Agreement and, except with respect to
claims based upon such gross negligence or willful misconduct or any such breach
that are successfully asserted against the Broker, the Grantor shall indemnify
and hold harmless the Broker (and any successor Broker) from and against any and
all losses,

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      liabilities,
claims, actions, damages and expenses, including reasonable attorneys’ fees and
disbursements arising out of and in connection with this Control
Agreement.

       

      SECTION
6.  Termination.  This
Control Agreement shall terminate automatically upon receipt by the Broker of
written notice executed by the Agent terminating this Agreement.

       

      SECTION
7.  Waiver;
Priority of Agent’s Interests.  Other than with respect to its
fees and customary commissions with respect to the Pledged Account, the Broker
hereby waives its right to set off any obligations of the Grantor to the Broker
against any or all of the Collateral and hereby agrees that any and all liens,
encumbrances, claims or security interests which the Broker may have against the
Collateral, either now or in the future in connection with the Pledged Account,
are and shall be subordinate and junior to the prior payment in full in
immediately available funds of all obligations of the Grantor now or hereafter
existing under the Credit Agreement, the Guarantee and Collateral Agreement, and
all other documents related thereto, whether for principal, interest (including,
without limitation, interest as provided in the Credit Agreement, whether or not
such interest accrues after the filing of such petition for purposes of the
federal Bankruptcy Code or is an allowed claim in such proceeding), indemnities,
fees, premiums, expenses or otherwise.  Except for the foregoing and
claims and interests of the Agent and the Grantor in the Collateral and the
rights of the Broker therein, the Broker does not know of any claim to or
security interest or other interest in the Collateral.

       

      SECTION
8.  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 days after being deposited in the mail, postage prepaid, or,
in the case of telecopy notice, when received, to the Grantor’s and the Agent’s
addresses as set forth in the Guarantee and Collateral Agreement, and to the
Broker’s address as set forth below, or to such other address as any party may
give to the others in writing for such purpose:

       

      [Name of
Broker]

      [Address
of Broker]

      Attention:________________

      Telephone:  (  )
___________________

      Telecopy:  (  )
____________________

       

      SECTION
9.  Amendments in
Writing.  None of the terms or provisions of this Control
Agreement may be waived, amended, supplemented or otherwise modified except by a
written instrument executed by the parties hereto.

       

      SECTION
10.  Entire
Agreement.  This Control Agreement and the Guarantee and
Collateral Agreement constitute the entire agreement and supersede all other
prior agreements and understandings, both written and oral, among the parties
with respect to the subject matter hereof.

       

      SECTION
11.  Execution in
Counterparts.  This Control Agreement may be executed in any
number of counterparts (including by telecopy), each of which when so executed
shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      SECTION
12.  Successors and
Assigns.  This Control Agreement will be binding upon and inure
to the benefit of the parties hereto and their respective successors and
assigns, except that the Grantor may not assign, transfer or delegate any of its
rights or obligations under this Control Agreement without the prior written
consent of the Agent.

       

      SECTION
13.  Governing Law and
Jurisdiction.  This Control Agreement has been delivered to and
accepted by the Agent and will be deemed to be made in the State of New
York.  THIS CONTROL AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
YORK.  Each of the parties hereto submits for itself and its property
in any legal action or proceeding relating to this Control Agreement, 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, the
courts of the United States of America for the Southern District of New York,
and appellate courts from any thereof.

       

      SECTION
14.  WAIVER
OF JURY TRIAL.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING
RELATING TO THIS CONTROL AGREEMENT AND FOR ANY COUNTERCLAIM
THEREIN.

       

      IN
WITNESS WHEREOF, each of the undersigned has caused this Control Agreement to be
duly executed and delivered as of the date first above written.

       

      [NAME OF
GRANTOR]

       

      By:___________________________

      Name:

      Title:

       

      FOURTH
THIRD LLC, as

       

      Agent

       

      By:___________________________

      Name:

      Title:

       

       [NAME
OF BROKER]

       

      By:___________________________

      Name:

      Title:

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Exhibit
H to Guarantee and Collateral Agreement

       

      FORM
OF CONTROL AGREEMENT

       

      This
CONTROL AGREEMENT (as amended, supplemented or otherwise modified from time to
time, this “Control
Agreement”) dated as of ______________, 200__, is made by and among
_______________, a __________ corporation (the “Grantor”), Fourth
Third LLC, as Agent (in such capacity, the “Agent”) for the
Secured Creditors (as defined in the Guarantee and Collateral Agreement referred
to below), and ____________, a ____________ corporation (the “Broker”).

       

      WHEREAS,
the Broker maintains for the Grantor a commodity account, Account No.
_________________ (the “Pledged Account”), in
the name of the Grantor.

       

      WHEREAS,
the Grantor has granted to the Agent for the benefit of the Secured Creditors a
security interest in the Pledged Account, the commodity contracts and any free
credit balance carried therein, and all additions thereto and substitutions and
Proceeds thereof (collectively, the “Collateral”) pursuant
to a Guarantee and Collateral Agreement, dated as of June __, 2008 (as amended,
supplemented, replaced or otherwise modified from time to time, the “Guarantee and Collateral
Agreement”), by the Grantor and the other persons party thereto as
grantors in favor of the Agent.

       

      WHEREAS,
the following terms which are defined in Articles 8 and 9 of the Uniform
Commercial Code in effect in the State of New York on the date hereof (the
“UCC”) are used
herein as so defined (whether or not such terms are capitalized in the
UCC):  Commodity Account, Commodity Contract, Commodity Intermediary’s
Jurisdiction, Control and Proceeds.

       

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

       

      SECTION
1.  Notice
of Security Interest.  The Grantor, the Agent and the Broker
are entering into this Control Agreement to perfect, and to confirm the priority
of, the Agent’s security interest in the Collateral.  The Broker
acknowledges that this Control Agreement constitutes written notification to the
Broker of the Agent’s security interest in the Collateral.  The Broker
agrees to promptly make all necessary entries or notations in its books and
records to reflect the Agent’s security interest in the
Collateral.  The Broker acknowledges that the Agent has control over
the Pledged Account and all Commodity Contracts and any free credit balance
carried therein from time to time.

       

      SECTION
2.  Collateral; Pledged
Account.  (a) The Grantor hereby agrees with the Agent and the
Broker that the Grantor shall direct that  all Commodity Contracts
carried by the Broker on its books for the Grantor be credited to the Pledged
Account or another commodity account subject to a Control Agreement maintained
with the Broker.

       

      (b)           The
Broker hereby represents and warrants to, and agrees with the Grantor and the
Agent that (i) the Broker is a Commodity Intermediary with respect to the
Grantor and the Pledged Account is a Commodity Account, (ii) the Commodity
Intermediary’s Jurisdiction is, and during the term of this Control Agreement
shall remain, the State of New York, (iii) Schedule 1 contains a
true and complete statement of the Pledged Account and the Commodity Contracts
and any free credit balance carried therein as of the date hereof, and
(iv) the Pledged Account is and

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      shall
remain a cash account, and the Broker will not extend, directly or indirectly,
any “purpose credit” (within the meaning of such term under Regulation T of the
Board of Governors of the Federal Reserve System of the United States) to the
Grantor in respect of the Pledged Account.  The Broker will not, so
long as this Control Agreement is in effect, enter into any agreement with any
other person that provides Control over the Pledged Account to such other
person.

       

      (c)           The
Agent hereby instructs the Broker, and the Broker hereby confirms and agrees
that, unless the Agent shall otherwise direct the Broker in writing, all
Commodity Contracts carried by the Broker on its books for the Grantor shall be
credited only to, and carried only in, the Pledged Account or another commodity
account subject to a Control Agreement maintained with the Broker.

       

      SECTION
3.  Control.  The
Broker hereby agrees, upon written direction from the Agent and without further
consent from the Grantor, (a) to apply any value distributed on account of the
Commodity Contracts carried in the Pledged Account as directed by the Agent, to
liquidate or otherwise dispose of the Collateral as and to the extent directed
by the Agent and to pay over to the Agent all proceeds and other value therefrom
or otherwise distributed with respect thereto without any setoff or deduction,
and (b) except as otherwise directed by the Agent, not to apply any value
distributed on account of any Commodity Contract carried in the Pledged Account
as directed by the Grantor or any other person.

       

      SECTION
4.  Other
Agreements; Termination; Successor Brokers.  The Broker shall
simultaneously send to the Agent copies of all notices given and statements
rendered pursuant to the Pledged Account.  The Broker shall notify
promptly the Agent and the Grantor if any other person asserts any lien,
encumbrance, claim or security interest in or against any of the
Collateral.  As long as the Guarantee and Collateral Agreement remains
in effect, neither the Grantor nor the Broker shall terminate the Pledged
Account without thirty (30) days’ prior written notice to the other party and
the Agent.  In the event of any conflict between the provisions of
this Control Agreement and any other agreement governing the Pledged Account or
the Collateral, the provisions of this Control Agreement shall
control.  In the event the Broker no longer serves as Broker for the
Collateral, the Pledged Account, the Commodity Contracts and any free credit
balance carried therein shall be transferred to a successor broker, custodian or
futures commission merchant satisfactory to the Agent, provided, that prior to
such transfer, such successor broker, custodian or futures commission merchant
shall execute an agreement that is substantially in the form of this Control
Agreement or is otherwise in form and substance satisfactory to the
Agent.

       

      SECTION
5.  Protection of Broker
Indemnification.  The Broker may rely and shall be protected in
acting upon any notice, instruction or other communication that it reasonably
believes to be genuine and authorized.  The Broker shall not be
liable, except for its own gross negligence or willful misconduct or its breach
of the express terms of this Control Agreement and, except with respect to
claims based upon such gross negligence or willful misconduct or any such breach
that are successfully asserted against the Broker, the Grantor shall indemnify
and hold harmless the Broker (and any successor Broker) from and against any and
all losses, liabilities, claims, actions, damages and expenses, including
reasonable attorneys’ fees and disbursements arising out of and in connection
with this Control Agreement.

       

      SECTION
6.  Termination.  This
Control Agreement shall terminate automatically upon receipt by the Broker of
written notice executed by the Agent terminating this Agreement.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      SECTION
7.  Waiver;
Priority of Agent’s Interests.  Other than with respect to its
fees and customary commissions with respect to the Pledged Account, the Broker
hereby waives its right to set off any obligations of the Grantor to the Broker
against any or all of the Collateral and hereby agrees that any and all liens,
encumbrances, claims or security interests which the Broker may have against the
Collateral, either now or in the future in connection with the Pledged Account,
are and shall be subordinate and junior to the prior payment in full in
immediately available funds of all obligations of the Grantor now or hereafter
existing under the Credit Agreement, the Guarantee and Collateral Agreement, and
all other documents related thereto, whether for principal, interest (including,
without limitation, interest as provided in the Credit Agreement, whether or not
such interest accrues after the filing of such petition for purposes of the
federal Bankruptcy Code or is an allowed claim in such proceeding), indemnities,
fees, premiums, expenses or otherwise.  Except for the foregoing and
claims and interests of the Agent and the Grantor in the Collateral and the
rights of the Broker therein, the Broker does not know of any claim to or
security interest or other interest in the Collateral.

       

      SECTION
8.  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 days after being deposited in the mail, postage prepaid, or,
in the case of telecopy notice, when received, to the Grantor’s and the Agent’s
addresses as set forth in the Guarantee and Collateral Agreement, and to the
Broker’s address as set forth below, or to such other address as any party may
give to the others in writing for such purpose:

       

      [Name of
Broker]

      [Address
of Broker]

      Attention:_________________

      Telephone:  (  )
__________________

      Telecopy:  (  )
___________________

       

      SECTION
9.  Amendments in
Writing.  None of the terms or provisions of this Control
Agreement may be waived, amended, supplemented or otherwise modified except by a
written instrument executed by the parties hereto.

       

      SECTION
10.  Entire
Agreement.  This Control Agreement and the Guarantee and
Collateral Agreement constitute the entire agreement and supersede all other
prior agreements and understandings, both written and oral, among the parties
with respect to the subject matter hereof.

       

      SECTION
11.  Execution in
Counterparts.  This Control Agreement may be executed in any
number of counterparts (including by telecopy), each of which when so executed
shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement.

       

      SECTION
12.  Successors and
Assigns.  This Control Agreement will be binding upon and inure
to the benefit of the parties hereto and their respective successors and
assigns, except that the Grantor may not assign, transfer or delegate any of its
rights or obligations under this Control Agreement without the prior written
consent of the Agent.

       

      SECTION
13.  Governing Law and
Jurisdiction.  This Control Agreement has been delivered to and
accepted by the Agent and will be deemed to be made in the State of New
York.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      THIS
CONTROL AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.  Each of the
parties hereto submits for itself and its property in any legal action or
proceeding relating to this Control Agreement, 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, the courts of the United
States of America for the Southern District of New York, and appellate courts
from any thereof.

       

      SECTION
14.  WAIVER
OF JURY TRIAL.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING
RELATING TO THIS CONTROL AGREEMENT AND FOR ANY COUNTERCLAIM
THEREIN.

       

      IN
WITNESS WHEREOF, each of the undersigned has caused this Control Agreement to be
duly executed and delivered as of the date first above written.

       

      [NAME OF
GRANTOR]

       

      By:___________________________

      Name:

      Title:

       

      FOURTH
THIRD LLC, as

       

      Agent

       

      By:___________________________

      Name:

      Title:

      Title:

       

      [NAME OF
BROKER]

       

      By:___________________________

      Name:

      Title:

      

      1.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Exhibit
I to Guarantee and Collateral Agreement

       

      FORM
OF CONTROL AGREEMENT

       

      This
CONTROL AGREEMENT (as amended, supplemented or otherwise modified from time to
time, this “Control
Agreement”) dated as of _________, 200_, is made by and among
_______________, a __________ corporation (the “Beneficiary”), FOURTH
THIRD LLC, as Agent (in such capacity, the “Agent”) for the
Secured Creditors (as defined in the Guarantee and Collateral Agreement referred
to below), and ____________, a ____________ (the “Issuer”).

       

      WHEREAS,
the Issuer has issued Letter of Credit No. _________ (together with all accepted
amendment or other modifications thereto, the “Credit”) in favor of
the Beneficiary.

       

      WHEREAS,
the Beneficiary has granted to the Agent for the benefit of the Secured
Creditors a security interest in and assignment of all proceeds of and all of
the Beneficiary’s other Letter-of-Credit Rights with respect to the Credit (the
“Collateral”)
pursuant to a Guarantee and Collateral Agreement, dated as of June __, 2008 (as
amended, supplemented, replaced or otherwise modified from time to time, the
“Guarantee and
Collateral Agreement”), by the Beneficiary and the other persons named as
“Grantors” therein in favor of the Agent.

       

      WHEREAS,
the following terms which are defined in Article 9 of the Uniform Commercial
Code in effect in the State of New York on the date hereof (the “UCC”) are used herein
as so defined (whether or not such terms are capitalized in the
UCC):  Letter-of-Credit Rights and Proceeds.

       

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

       

      SECTION
1.  Notice
of Security Interest.  The Beneficiary, the Agent and the
Issuer are entering into this Control Agreement to perfect, and to confirm the
priority of, the Agent’s security interest in the Collateral.  The
Issuer acknowledges that this Control Agreement constitutes written notification
to the Issuer of the Agent’s security interest in the Collateral.  The
Issuer agrees, upon its receipt of the original Credit (which the Beneficiary
agrees to transmit forthwith to the Issuer), to promptly make a notation to
reflect the Agent’s security interest in the Collateral upon the original Credit
and thereafter return the original Credit to the Beneficiary.  The
Issuer also agrees to promptly make such other necessary entries or notations in
its books and records to reflect the Agent’s security interest in the
Collateral.  The Issuer acknowledges that the Agent has control over
the Collateral.

       

      SECTION
2.  Control.  For
the purposes of Sections 5-114(c) and 9-107 of the UCC, the Issuer hereby
consents to the grant to the Agent of a security interest in the
Letter-of-Credit Rights under the Credit and to the assignment to the Agent of
the Proceeds of the Credit.  The Issuer will pay all Proceeds of the
Credit to the Agent in accordance with the Agent’s written
instructions.  The Beneficiary agrees to immediately return to the
Issuer any Proceeds of the Credit inadvertently paid to the
Beneficiary.  The Issuer will not consent to any other assignment of
Proceeds of the Credit or to any other security interest in the
Collateral.

       

      SECTION
3.  Extent
of Agreement.  This Control Agreement (a) is not a transfer or
assignment of the Credit, (b) does not give the Agent any interest in the Credit
or any documents presented thereunder or any right to draw on the Credit or to
consent or to refuse to consent to

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      amendments
to the Credit or to the cancellation thereof, (c) does not affect whether the
Beneficiary can transfer its right to draw on the Credit and (d) does not affect
the Beneficiary’s right to draw on the Credit or the Beneficiary’s or the
Issuer’s right to consent or to refuse to consent to amendments to the Credit or
to the cancellation thereof.

       

      SECTION
4.  Representations and
Warranties.  The Beneficiary represents and warrants
that:

       

      (a)           other
than as set forth herein, the Beneficiary has not and will not, by transfer or
assignment of the Credit, by negotiation of drafts, by drawing drafts to a third
party or otherwise, assign the right to receive the whole or any portion of the
Collateral or give any other control rights, authorization or direction in
respect of the Collateral to any other party;

       

      (b)           the
Beneficiary has not and will not, without the prior written consent of the
Issuer, present to anyone but the Issuer any documents under the
Credit;

       

      (c)           the
Beneficiary’s execution, delivery and performance of this Control Agreement (i)
are within its powers, (ii) have been duly authorized, (iii) do not contravene
any charter provision, by-law, resolution, contract or other undertaking binding
on or affecting the Beneficiary or any of its properties, (iv) do not violate
any applicable domestic or foreign law, rule or regulation and (v) do not
require any notice, filing or other action to, with or by any governmental
authority;

       

      (d)           this
Control Agreement has been duly executed and delivered by the Beneficiary and is
the Beneficiary’s legal, valid and binding obligation; and

       

      (e)           the
transactions underlying the Credit (and any shipment of goods or provision of
services and any related financial arrangements) and this Control Agreement do
not violate any applicable United States or other law, rule or
regulation.

       

      SECTION
5.  Other
Agreements; Termination; Successor Issuers.  The Issuer shall
simultaneously send to the Agent copies of all notices given and statements
rendered pursuant to the Credit.  The Issuer shall notify promptly the
Agent and the Beneficiary if any other person asserts any lien, encumbrance,
claim (including any adverse claim) or security interest in or against any of
the Collateral.  Until the Agent has notified the Issuer and
Beneficiary that this Agreement has been terminated in accordance with Section 7,
neither the Beneficiary nor the Issuer shall terminate the Credit before its
stated maturity without thirty (30) days’ prior written notice to the other
party and the Agent.  In the event of any conflict between the
provisions of this Control Agreement and any other agreement governing the
Credit or the Collateral, the provisions of this Control Agreement shall
control.  In the event the Issuer no longer serves as Issuer for the
Credit, the Credit shall be transferred to a successor Issuer satisfactory to
the Agent, provided, that prior to such transfer, such successor Issuer shall
execute an agreement that is substantially in the form of this Control Agreement
or is otherwise in form and substance satisfactory to the Agent.

       

      SECTION
6.  Protection of Issuer;
Indemnification.  The Issuer may rely and shall be protected in
acting upon any notice, instruction or other communication that it reasonably
believes to be genuine and authorized.  The Issuer shall not be
liable, except for its own gross negligence or willful misconduct or its breach
of the express terms of this Control Agreement and, except with respect to
claims based upon such gross negligence or willful misconduct or
any

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      such
breach that are successfully asserted against the Issuer, the Beneficiary shall
indemnify and hold harmless the Issuer (and any successor Issuer) from and
against any and all losses, liabilities, claims, actions, damages and expenses,
including reasonable attorneys’ fees and disbursements arising out of and in
connection with this Control Agreement.

       

      SECTION
7.  Termination.  This
Control Agreement shall terminate automatically upon receipt by the Issuer of
written notice executed by the Agent terminating this Agreement.

       

      SECTION
8.  Waiver.  The
Issuer hereby waives its right to set off any obligations of the Beneficiary to
the Issuer against any or all of the Collateral.

       

      SECTION
9.  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 days after being deposited in the mail, postage prepaid, or,
in the case of telecopy notice, when received, to the Beneficiary’s and the
Agent’s addresses as set forth in the Guarantee and Collateral Agreement, and to
the Issuer’s address as set forth below, or to such other address as any party
may give to the others in writing for such purpose:

       

      [Name of
Issuer]

      [Address
of Issuer]

      Attention:_____________________

      Telephone:  (  )
________________

      Telecopy:  (  )
_________________

       

      SECTION
10.  Amendments in
Writing.  None of the terms or provisions of this Control
Agreement may be waived, amended, supplemented or otherwise modified except by a
written instrument executed by the parties hereto.

       

      SECTION
11.  Entire
Agreement.  This Control Agreement and the Guarantee and
Collateral Agreement constitute the entire agreement and supersede all other
prior agreements and understandings, both written and oral, among the parties
with respect to the subject matter hereof.

       

      SECTION
12.  Execution in
Counterparts.  This Control Agreement may be executed in any
number of counterparts (including by telecopy), each of which when so executed
shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement.

       

      SECTION
13.  Successors and
Assigns.  This Control Agreement will be binding upon and inure
to the benefit of the parties hereto and their respective successors and
assigns, except that the Beneficiary may not assign, transfer or delegate any of
its rights or obligations under this Control Agreement without the prior written
consent of the Agent.

       

      SECTION
14.  Governing Law and
Jurisdiction.  This Control Agreement has been delivered to and
accepted by the Agent and will be deemed to be made in the State of New
York.  This Control Agreement is made subject to the practice rules
(e.g., UCP 500 or ISP
98) to which the Credit is subject.  THIS CONTROL AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE
STATE OF NEW YORK.  Each of the parties hereto submits for itself and
its property in any legal action

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      or
proceeding relating to this Control Agreement, 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, the courts of the United
States of America for the Southern District of New York, and appellate courts
from any thereof.

       

      SECTION
15.  WAIVER
OF JURY TRIAL.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING
RELATING TO THIS CONTROL AGREEMENT AND FOR ANY COUNTERCLAIM
THEREIN.

       

      IN
WITNESS WHEREOF, each of the undersigned has caused this Control Agreement to be
duly executed and delivered as of the date first above written.

       

      [NAME OF
BENEFICIARY],

      as
Beneficiary

      

       

      By:___________________________

      Name:

      Title:

      

      FOURTH
THIRD LLC,

      as
Agent

      

       

      By:___________________________

      Name:

      Title:

      

      [NAME OF
ISSUER],

      as
Issuer

      

       

      By:___________________________

      Name:

      Title:

      

      

      1.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Annex
1 to Guarantee and Collateral Agreement

       

      ASSUMPTION
AGREEMENT, dated as of ____________, 200__, made by ______________________, a
_______________ corporation (the “Additional Grantor”),
in favor of Fourth Third LLC, as Agent (in such capacity, the “Agent”) for (i) the
lenders (the “Lenders”) party to
the Credit Agreement referred to below and (ii) the other Secured Creditors (as
defined in the Guarantee and Collateral Agreement (as hereinafter
defined)).  All capitalized terms not defined herein shall have the
meaning ascribed to them in such Credit Agreement.

       

      W I T N E
S S E T H:

       

      WHEREAS
[_________________], (“Borrower”),
[___________________], the Lenders and the Agent have entered into an Amended
and Restated Credit Agreement, dated as of June __, 2008 (as amended,
supplemented, replaced or otherwise modified from time to time, the “Credit
Agreement”);

       

      WHEREAS,
in connection with the Credit Agreement, the Borrowers and certain of its
Affiliates (other than the Additional Grantor) have entered into a Guarantee and
Collateral Agreement, dated as of June __, 2008 (as amended, supplemented or
otherwise modified from time to time, the “Guarantee and Collateral
Agreement”) in favor of the Agent for the benefit of the Secured
Creditors;

       

      WHEREAS,
the Credit Agreement requires the Additional Grantor to become a party to the
Guarantee and Collateral Agreement; and

       

      WHEREAS,
the Additional Grantor has agreed to execute and deliver this Assumption
Agreement in order to become a party to the Guarantee and Collateral
Agreement;

       

      NOW,
THEREFORE, IT IS AGREED:

       

      1.           Guarantee and Collateral
Agreement.  By executing and delivering this Assumption
Agreement, the Additional Grantor, as provided in Section 19.15 of the
Guarantee and Collateral Agreement, hereby becomes a party to the Guarantee and
Collateral Agreement as a Grantor and Guarantor thereunder with the same force
and effect as if originally named therein as a Grantor and Guarantor and,
without limiting the generality of the foregoing, hereby expressly assumes all
obligations and liabilities of a Grantor and Guarantor
thereunder.  The information set forth in Annex 1-A hereto is hereby
added to the information set forth in the Perfection Certificate or Perfection
Supplement most recently delivered pursuant to the terms of the Guarantee and
Collateral Agreement.  The Additional Grantor hereby represents and
warrants that each of the representations and warranties as to the Additional
Grantor contained in Section 6 of the
Guarantee and Collateral Agreement is true and correct on and as the date hereof
(after giving effect to this Assumption Agreement) as if made on and as of such
date.

       

      2.           GOVERNING
LAW.  THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
YORK.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF, the undersigned has caused this Assumption Agreement to be duly
executed and delivered as of the date first above written.

       

      [ADDITIONAL
GRANTOR]

       

      By:_________________________

      Name:

      Title:

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