Document:

Exhibit 10.4

 

Execution
Version

 

 

Published
CUSIP Number: 767733AD0

 

$125,000,000

SECOND
LIEN CREDIT AGREEMENT

 

Dated
as of January 11, 2007

 

among

 

RISKMETRICS
GROUP HOLDINGS, LLC,

as Borrower,

 

RISKMETRICS
GROUP, INC.,

as Holdings,

 

BANK
OF AMERICA, N.A.,

as Administrative
Agent

 

and

 

The
Other Lenders Party Hereto

 

BANC
OF AMERICA SECURITIES LLC

and

CREDIT
SUISSE SECURITIES (USA) LLC,

as Joint Lead
Arrangers and Joint Book Managers

 

 

 

 

TABLE
OF CONTENTS

 

	
  Section

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  I

  	
   

  	
   

  
	
   

  	
   

  	
  DEFINITIONS
  AND ACCOUNTING TERMS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.01.

  	
   

  	
  Defined Terms

  	
   

  	
  1

  
	
  1.02.

  	
   

  	
  Other Interpretive
  Provisions

  	
   

  	
  28

  
	
  1.03.

  	
   

  	
  Accounting Terms

  	
   

  	
  28

  
	
  1.04.

  	
   

  	
  Rounding

  	
   

  	
  29

  
	
  1.05.

  	
   

  	
  Times of Day

  	
   

  	
  29

  
	
  1.06.

  	
   

  	
  [Reserved]

  	
   

  	
  29

  
	
  1.07.

  	
   

  	
  Currency Equivalents
  Generally

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  II

  	
   

  	
   

  
	
   

  	
   

  	
  THE
  LOANS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.01.

  	
   

  	
  The Loans

  	
   

  	
  29

  
	
  2.02.

  	
   

  	
  Borrowing, Conversions and
  Continuations of Loans

  	
   

  	
  29

  
	
  2.03.

  	
   

  	
  [Reserved]

  	
   

  	
  31

  
	
  2.04.

  	
   

  	
  [Reserved]

  	
   

  	
  31

  
	
  2.05.

  	
   

  	
  Prepayments

  	
   

  	
  31

  
	
  2.06.

  	
   

  	
  Termination of Commitments

  	
   

  	
  34

  
	
  2.07.

  	
   

  	
  Repayment of Loans

  	
   

  	
  34

  
	
  2.08.

  	
   

  	
  Interest

  	
   

  	
  34

  
	
  2.09.

  	
   

  	
  Fees

  	
   

  	
  35

  
	
  2.10.

  	
   

  	
  Computation of Interest
  and Fees

  	
   

  	
  35

  
	
  2.11.

  	
   

  	
  Evidence of Debt

  	
   

  	
  35

  
	
  2.12.

  	
   

  	
  Payments Generally;
  Administrative Agent’s Clawback

  	
   

  	
  36

  
	
  2.13.

  	
   

  	
  Sharing of Payments by
  Lenders

  	
   

  	
  37

  
	
  2.14.

  	
   

  	
  Increase in Facility

  	
   

  	
  38

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  III

  	
   

  	
   

  
	
   

  	
   

  	
  TAXES,
  YIELD PROTECTION AND ILLEGALITY

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.01.

  	
   

  	
  Taxes

  	
   

  	
  40

  
	
  3.02.

  	
   

  	
  Illegality

  	
   

  	
  42

  
	
  3.03.

  	
   

  	
  Inability to Determine
  Rates

  	
   

  	
  42

  
	
  3.04.

  	
   

  	
  Increased Costs; Reserves
  on Eurodollar Rate Loans

  	
   

  	
  43

  
	
  3.05.

  	
   

  	
  Compensation for Losses

  	
   

  	
  44

  
	
  3.06.

  	
   

  	
  Mitigation Obligations;
  Replacement of Lenders

  	
   

  	
  44

  
	
  3.07.

  	
   

  	
  Survival

  	
   

  	
  45

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  IV

  	
   

  	
   

  
	
   

  	
   

  	
  CONDITIONS
  PRECEDENT TO THE LOANS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.01.

  	
   

  	
  Conditions of the Loans

  	
   

  	
  45

  

 

i

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  V

  	
   

  	
   

  
	
   

  	
   

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.01.

  	
   

  	
  Existence, Qualification
  and Power

  	
   

  	
  49

  
	
  5.02.

  	
   

  	
  Authorization; No
  Contravention

  	
   

  	
  49

  
	
  5.03.

  	
   

  	
  Governmental
  Authorization; Other Consents

  	
   

  	
  50

  
	
  5.04.

  	
   

  	
  Binding Effect

  	
   

  	
  50

  
	
  5.05.

  	
   

  	
  Financial Statements; No
  Material Adverse Effect

  	
   

  	
  50

  
	
  5.06.

  	
   

  	
  Litigation

  	
   

  	
  51

  
	
  5.07.

  	
   

  	
  No Default

  	
   

  	
  51

  
	
  5.08.

  	
   

  	
  Ownership of Property

  	
   

  	
  52

  
	
  5.09.

  	
   

  	
  Environmental Compliance

  	
   

  	
  52

  
	
  5.10.

  	
   

  	
  Insurance

  	
   

  	
  52

  
	
  5.11.

  	
   

  	
  Taxes

  	
   

  	
  52

  
	
  5.12.

  	
   

  	
  ERISA Compliance

  	
   

  	
  53

  
	
  5.13.

  	
   

  	
  Subsidiaries; Loan Parties

  	
   

  	
  54

  
	
  5.14.

  	
   

  	
  Margin Regulations;
  Investment Company Act

  	
   

  	
  54

  
	
  5.15.

  	
   

  	
  Disclosure

  	
   

  	
  54

  
	
  5.16.

  	
   

  	
  Intellectual Property;
  Licenses, Etc.

  	
   

  	
  55

  
	
  5.17.

  	
   

  	
  Solvency

  	
   

  	
  55

  
	
  5.18.

  	
   

  	
  Collateral Documents

  	
   

  	
  55

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  VI

  	
   

  	
   

  
	
   

  	
   

  	
  AFFIRMATIVE
  COVENANTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.01.

  	
   

  	
  Financial Statements

  	
   

  	
  55

  
	
  6.02.

  	
   

  	
  Certificates; Other
  Information

  	
   

  	
  56

  
	
  6.03.

  	
   

  	
  Notices

  	
   

  	
  59

  
	
  6.04.

  	
   

  	
  Payment of Obligations

  	
   

  	
  59

  
	
  6.05.

  	
   

  	
  Preservation of Existence,
  Etc.

  	
   

  	
  60

  
	
  6.06.

  	
   

  	
  Maintenance of Properties

  	
   

  	
  60

  
	
  6.07.

  	
   

  	
  Maintenance of Insurance

  	
   

  	
  60

  
	
  6.08.

  	
   

  	
  Compliance with Laws

  	
   

  	
  60

  
	
  6.09.

  	
   

  	
  Books and Records

  	
   

  	
  60

  
	
  6.10.

  	
   

  	
  Inspection Rights

  	
   

  	
  60

  
	
  6.11.

  	
   

  	
  Use of Proceeds

  	
   

  	
  61

  
	
  6.12.

  	
   

  	
  Covenant to Guarantee
  Obligations and Give Security

  	
   

  	
  61

  
	
  6.13.

  	
   

  	
  Compliance with
  Environmental Laws

  	
   

  	
  62

  
	
  6.14.

  	
   

  	
  Further Assurances

  	
   

  	
  63

  
	
  6.15.

  	
   

  	
  [Reserved]

  	
   

  	
  63

  
	
  6.16.

  	
   

  	
  Material Contracts

  	
   

  	
  63

  
	
  6.17.

  	
   

  	
  Designation of
  Unrestricted Subsidiaries

  	
   

  	
  63

  
	
  6.18.

  	
   

  	
  Post-Closing Covenant

  	
   

  	
  64

  

 

ii

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  VII

  	
   

  	
   

  
	
   

  	
   

  	
  NEGATIVE
  COVENANTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.01.

  	
   

  	
  Liens

  	
   

  	
  65

  
	
  7.02.

  	
   

  	
  Indebtedness

  	
   

  	
  67

  
	
  7.03.

  	
   

  	
  Investments

  	
   

  	
  68

  
	
  7.04.

  	
   

  	
  Fundamental Changes

  	
   

  	
  70

  
	
  7.05.

  	
   

  	
  Dispositions

  	
   

  	
  71

  
	
  7.06.

  	
   

  	
  Restricted Payments

  	
   

  	
  72

  
	
  7.07.

  	
   

  	
  Change in Nature of
  Business

  	
   

  	
  73

  
	
  7.08.

  	
   

  	
  Transactions with
  Affiliates

  	
   

  	
  73

  
	
  7.09.

  	
   

  	
  Burdensome Agreements

  	
   

  	
  74

  
	
  7.10.

  	
   

  	
  Use of Proceeds

  	
   

  	
  75

  
	
  7.11.

  	
   

  	
  Consolidated Leverage
  Ratio

  	
   

  	
  75

  
	
  7.12.

  	
   

  	
  Capital Expenditures

  	
   

  	
  76

  
	
  7.13.

  	
   

  	
  Amendments of Organization
  Documents

  	
   

  	
  76

  
	
  7.14.

  	
   

  	
  Accounting Changes

  	
   

  	
  76

  
	
  7.15.

  	
   

  	
  Prepayments, Etc. of
  Indebtedness

  	
   

  	
  76

  
	
  7.16.

  	
   

  	
  Amendment, Etc. of
  Indebtedness

  	
   

  	
  76

  
	
  7.17.

  	
   

  	
  Holding Company

  	
   

  	
  77

  
	
  7.18.

  	
   

  	
  General Partner

  	
   

  	
  77

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  VIII

  	
   

  	
   

  
	
   

  	
   

  	
  EVENTS
  OF DEFAULT AND REMEDIES

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.01.

  	
   

  	
  Events of Default

  	
   

  	
  77

  
	
  8.02.

  	
   

  	
  Remedies upon Event of
  Default

  	
   

  	
  81

  
	
  8.03.

  	
   

  	
  Application of Funds

  	
   

  	
  81

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  IX

  	
   

  	
   

  
	
   

  	
   

  	
  ADMINISTRATIVE
  AGENT

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.01.

  	
   

  	
  Appointment and Authority

  	
   

  	
  82

  
	
  9.02.

  	
   

  	
  Rights as a Lender

  	
   

  	
  82

  
	
  9.03.

  	
   

  	
  Exculpatory Provisions

  	
   

  	
  82

  
	
  9.04.

  	
   

  	
  Reliance by Administrative
  Agent

  	
   

  	
  83

  
	
  9.05.

  	
   

  	
  Delegation of Duties

  	
   

  	
  83

  
	
  9.06.

  	
   

  	
  Resignation of
  Administrative Agent

  	
   

  	
  84

  
	
  9.07.

  	
   

  	
  Non-Reliance on
  Administrative Agent and Other Lenders

  	
   

  	
  84

  
	
  9.08.

  	
   

  	
  No Other Duties, Etc.

  	
   

  	
  85

  
	
  9.09.

  	
   

  	
  Administrative Agent May
  File Proofs of Claim

  	
   

  	
  85

  
	
  9.10.

  	
   

  	
  Collateral and Guaranty
  Matters

  	
   

  	
  85

  

 

iii

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  X

  	
   

  	
   

  
	
   

  	
   

  	
  CONTINUING
  GUARANTY

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.01.

  	
   

  	
  Guaranty

  	
   

  	
  86

  
	
  10.02.

  	
   

  	
  Rights of Lenders

  	
   

  	
  86

  
	
  10.03.

  	
   

  	
  Certain Waivers

  	
   

  	
  87

  
	
  10.04.

  	
   

  	
  Obligations Independent

  	
   

  	
  87

  
	
  10.05.

  	
   

  	
  Subrogation

  	
   

  	
  87

  
	
  10.06.

  	
   

  	
  Termination; Reinstatement

  	
   

  	
  87

  
	
  10.07.

  	
   

  	
  Subordination

  	
   

  	
  88

  
	
  10.08.

  	
   

  	
  Stay of Acceleration

  	
   

  	
  88

  
	
  10.09.

  	
   

  	
  Condition of Borrower

  	
   

  	
  88

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  XI

  	
   

  	
   

  
	
   

  	
   

  	
  MISCELLANEOUS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.01.

  	
   

  	
  Amendments, Etc.

  	
   

  	
  88

  
	
  11.02.

  	
   

  	
  Notices; Effectiveness;
  Electronic Communications

  	
   

  	
  90

  
	
  11.03.

  	
   

  	
  No Waiver; Cumulative
  Remedies

  	
   

  	
  92

  
	
  11.04.

  	
   

  	
  Expenses; Indemnity;
  Damage Waiver

  	
   

  	
  92

  
	
  11.05.

  	
   

  	
  Payments Set Aside

  	
   

  	
  94

  
	
  11.06.

  	
   

  	
  Successors and Assigns

  	
   

  	
  95

  
	
  11.07.

  	
   

  	
  Treatment of Certain
  Information; Confidentiality

  	
   

  	
  98

  
	
  11.08.

  	
   

  	
  Right of Setoff

  	
   

  	
  99

  
	
  11.09.

  	
   

  	
  Interest Rate Limitation

  	
   

  	
  99

  
	
  11.10.

  	
   

  	
  Counterparts; Integration;
  Effectiveness

  	
   

  	
  99

  
	
  11.11.

  	
   

  	
  Survival of
  Representations and Warranties

  	
   

  	
  100

  
	
  11.12.

  	
   

  	
  Severability

  	
   

  	
  100

  
	
  11.13.

  	
   

  	
  Replacement of Lenders

  	
   

  	
  100

  
	
  11.14.

  	
   

  	
  Governing Law;
  Jurisdiction, Etc.

  	
   

  	
  101

  
	
  11.15.

  	
   

  	
  Waiver of Jury Trial

  	
   

  	
  102

  
	
  11.16.

  	
   

  	
  No Advisory or Fiduciary
  Responsibility

  	
   

  	
  102

  
	
  11.17.

  	
   

  	
  USA PATRIOT Act Notice

  	
   

  	
  103

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SIGNATURES

  	
   

  	
  S-1

  

 

iv

	
  SCHEDULES

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  1.01(a)

  	
  Indebtedness to be Repaid

  
	
   

  	
  2.01

  	
  Commitments and Applicable
  Percentages

  
	
   

  	
  5.03

  	
  Certain Authorizations

  
	
   

  	
  5.13

  	
  Subsidiaries and Other
  Equity Investments; Loan Parties

  
	
   

  	
  5.17

  	
  Intellectual Property
  Matters

  
	
   

  	
  6.12

  	
  Guarantors

  
	
   

  	
  7.01(b)

  	
  Existing Liens

  
	
   

  	
  7.02

  	
  Existing Indebtedness

  
	
   

  	
  7.03(f)

  	
  Existing Investments

  
	
   

  	
  11.02

  	
  Administrative Agent’s
  Office, Certain Addresses for Notices

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Form of

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  A

  	
  Committed Loan Notice

  
	
   

  	
  B

  	
  [Reserved]

  
	
   

  	
  C

  	
  Note

  
	
   

  	
  D

  	
  Compliance Certificate

  
	
   

  	
  E

  	
  Assignment and Assumption

  
	
   

  	
  F

  	
  Guaranty

  
	
   

  	
  G

  	
  Security Agreement

  
	
   

  	
  H

  	
  Opinion Matters

  
	
   

  	
  I

  	
  Perfection Certificate

  
	
   

  	
  J

  	
  Intercreditor Agreement

  
	
   

  	
  K

  	
  Notice of Election

  

 

v

 

SECOND
LIEN CREDIT AGREEMENT

 

This SECOND LIEN CREDIT
AGREEMENT (“Agreement”) is entered into as of January 11, 2007, among
RISKMETRICS GROUP HOLDINGS, LLC, a Delaware limited liability company (the “Borrower”),
RISKMETRICS GROUP, INC., a Delaware corporation (“Holdings”), each
lender from time to time party hereto (collectively, the “Lenders” and
individually, a “Lender”), BANK OF AMERICA, N.A.,
as Administrative Agent and BANC OF AMERICA SECURITIES LLC and CREDIT SUISSE
SECURITIES (USA) LLC, as joint lead arrangers and joint book managers
(collectively, the “Arrangers”).

 

PRELIMINARY
STATEMENTS:

 

Pursuant to the Agreement
and Plan of Merger dated October 31, 2006 among RiskMetrics, Inc., formerly
known as RiskMetrics Group, Inc. (“RiskMetrics”), RMG Holdco, Inc. (“RMG
Holdco”), RMG Merger Sub, Inc. (“RMG Merger Sub”), ISS Merger Sub,
Inc. (“ISS Merger Sub”), and Institutional Shareholder Services
Holdings, Inc. (“Seller”), as amended by Amendment No. 1 to Agreement
and Plan of Merger dated November 14, 2006 among RiskMetrics, RMG Holdco, RMG
Merger Sub, ISS Merger Sub and Seller and Amendment No. 2 dated November 30,
2006 among Borrower, RiskMetrics, RMG Holdco, RMG Merger Sub, ISS Merger Sub
and Seller (collectively, the “Merger Agreement”) RiskMetrics has agreed
to consummate a business combination between RiskMetrics and Seller as follows:
The Borrower will acquire all of the capital stock of RiskMetrics and Seller by
means of (i) the merger of a wholly owned subsidiary,
RMG Merger Sub, Inc. with and into RiskMetrics (the “RMG Merger”), with
RiskMetrics continuing as the surviving corporation, and (ii) the merger of a
wholly owned subsidiary, ISS Merger Sub, Inc., with and into Seller (the “ISS
Merger” and collectively with the RMG Merger, the “Merger”), with
Seller continuing as the surviving corporation. Immediately following the
Merger, each of RiskMetrics and Seller will be a direct wholly owned subsidiary
of Borrower. In connection with the Merger, there will be a rollover by certain
of the existing common equity holders of Seller into Holdings (the “Rollover
Equity Contribution”).

 

The Borrower has requested
that the Lenders provide a term loan facility to pay to the Seller’s
stockholders and optionholders the cash consideration
for their shares and vested options of Seller in the ISS Merger, to pay
transaction fees and expenses and to refinance certain Indebtedness of
Seller on the terms and subject to the conditions set forth herein.

 

In consideration of the
mutual covenants and agreements herein contained, the parties hereto covenant
and agree as follows:

 

ARTICLE
I

DEFINITIONS
AND ACCOUNTING TERMS

 

1.01. Defined Terms.
As used in this Agreement, the following terms shall have the meanings
set forth below:

 

“Administrative Agent”
means Bank of America in its capacity as administrative agent under any of the
Loan Documents, or any successor administrative agent.

 

 

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

 

“Administrative Questionnaire”
means an Administrative Questionnaire in a form supplied by the Administrative
Agent.

 

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

 

“Aggregate Commitments”
means the Commitments of all the Lenders.

 

“Agreement” means
this Credit Agreement.

 

“Applicable Percentage”
means, at any time, the percentage (carried out to the ninth decimal place) of
the Facility represented by (i) on or prior to the
Closing Date, such Lender’s Commitment at such time and (ii) thereafter, the
principal amount of such Lender’s Loans at such time. The initial Applicable
Percentage of each Lender is set forth opposite the name of such Lender on Schedule
2.01 or in the Assignment and Assumption pursuant to which such Lender
becomes a party hereto, as applicable.

 

“Applicable Rate” means
4.50% per annum for Base Rate Loans and 5.50% per annum for Eurodollar Rate
Loans.

 

“Appropriate Lender”
means, at any time, a Lender that has a Commitment or holds a Loan,
respectively, at such time.

 

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

 

“Arrangers” has the
meaning specified in the introductory paragraph hereto.

 

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

 

“Assignment and
Assumption” means an assignment and assumption entered into by a Lender and
an Eligible Assignee (with the consent of any party whose consent is required
by Section 11.06(b)), and accepted by the Administrative Agent, in
substantially the form of Exhibit E or any other form approved by the
Administrative Agent.

 

“Attributable
Indebtedness” means, on any date, (a) in respect of any Capitalized Lease
of any Person, the capitalized amount thereof that would appear on a balance
sheet of such Person prepared as of such date in accordance with GAAP, (b) in respect of any Synthetic Lease Obligation, the
capitalized amount of the remaining lease or similar payments under the
relevant lease or other applicable agreement or instrument that would appear on
a balance sheet of such

 

2

 

Person prepared as of such
date in accordance with GAAP if such lease or other
agreement or instrument were accounted for as a Capitalized Lease and (c) all
Synthetic Debt of such Person.

 

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

 

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

 

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

 

“Berman Family” means
(a) Ethan Berman, his spouse, members of his immediate family, and/or any of
the lineal descendants of any thereof and/or (b) any trust or similar entity
all of the beneficiaries of which, or a corporation, partnership or limited
liability company all of the stockholders and other equity holders, limited and
general partners or members of which, are (i) solely
the Persons identified in the foregoing clause (a) and/or (ii) any entity
described in this clause (b) all the beneficiaries of which, or all the
stockholders and other equity holders, limited and general partners of
which, are solely the Persons identified in the foregoing clause (a).

 

“Borrower” has the
meaning specified in the introductory paragraph hereto.

 

“Borrower Materials”
has the meaning specified in Section 6.02.

 

“Borrowing” means a
borrowing consisting of simultaneous Loans of the same Type and, in the case of
Eurodollar Rate Loans, having the same Interest Period, made by each of the
Lenders pursuant to Section 2.01.

 

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

 

“Capex
Carryover Amount” means, for any fiscal year of Holdings, the excess of (a)
the amount of Capital Expenditures set forth for such fiscal year in the chart
contained in Section 7.12  over  (b) the aggregate
amount of Capital Expenditures made by Holdings and its
Subsidiaries during such fiscal year.

 

“Capital Expenditures”
means, with respect to any Person for any period, any expenditure in respect of
the purchase or other acquisition of any fixed or capital asset (excluding
normal replacements and maintenance which are properly charged to current

 

3

 

operations); provided
that “Capital Expenditures” shall not include: (a) any expenditures made with cash that
could otherwise be paid by Holdings in compliance with Section 7.06(g),
(b) expenditures made in connection with the replacement, substitution or
restoration of assets (i) to the extent financed from
insurance proceeds or (ii) with awards of compensation arising from the taking
by eminent domain or condemnation of the assets being replaced, (c) the
purchase price of equipment that is purchased simultaneously with the trade in
of existing equipment to the extent that the gross amount of such purchase
price is reduced by the credit granted by the seller of such equipment for the
equipment being traded in at such time and (d) any capital expenditures deemed
to be made as part of any acquisition permitted by Section 7.03.

 

“Capitalized Leases”
means all leases that have been or should be, in accordance with GAAP, recorded as capitalized leases.

 

“Cash Equivalents”
means any of the following types of Investments: (a) obligations
issued or directly and fully guaranteed or insured by the United States of
America or any agency or instrumentality thereof having maturities of not more
than 360 days from the date of acquisition thereof; provided that the
full faith and credit of the United States of America is pledged in support
thereof; (b) deposits, time deposits, eurodollar time
deposits or overnight bank deposits with, or insured certificates of deposit or
bankers’ acceptances of, any commercial bank that (i)
(A) is a Lender or an Affiliate of a Lender or (B) is organized under the laws
of the United States of America, any state thereof or the District of Columbia
or is the principal banking subsidiary of a bank holding company organized
under the laws of the United States of America, any state thereof or the
District of Columbia, and is a member of the Federal Reserve System, or under
the laws of a foreign country (or political subdivision thereof) in which a
Subsidiary making such deposits operates its business and (ii)(A) has combined
capital and surplus of at least $250,000,000, (B) whose senior unsecured debt
is rated at least A-1 by S&P and at least P-1 by Moody’s; (C) has a
short-term commercial paper rating (at the time of acquisition of such security)
by S&P of at least A-1 or the equivalent thereof or by Moody’s of at least
Prime-1 or the equivalent thereof; or (D) has a long-term unsecured debt rating
(at the time of acquisition of such security) of at least AA or the equivalent
thereof by S&P or at least Aa2 or the equivalent
thereof by Moody’s (each commercial bank referred to in this clause (b), being
an “Approved Bank”); (c) deposits, time deposits, eurodollar
time deposits or overnight bank deposits with, or certificates of deposit or
bankers’ acceptances of any commercial bank that is organized under the laws of
a foreign country but is not an Approved Bank with a long-term unsecured debt
rating (at the time of acquisition of such security) of at least AA or the
equivalent thereof by S&P or at least Aa2 or the
equivalent thereof by Moody’s; (d) commercial paper and variable or fixed rate
notes issued by any Approved Bank or by the parent company of any Approved
Bank; (e) commercial paper and variable rate notes issued by, or guaranteed by,
any industrial or financial company with a short-term commercial paper rating
(at the time of acquisition of such security) of at least A-1 or the equivalent
thereof by S&P or at least Prime-1 or the equivalent thereof by Moody’s, or
issued by, or guaranteed by any industrial company with a long-term unsecured
debt rating (at the time of acquisition of such security) of at least AA or the
equivalent thereof by S&P or at least Aa or the
equivalent thereof by Moody’s and in each case maturing within one year after
the date of acquisition; (f) repurchase obligations of any Approved Bank,
having a term of not more than 30 days, with respect to securities issued or
fully guaranteed or insured by the United States government; (g) repurchase
agreements with any

 

4

 

Lender or any primary dealer
maturing within one year from the date of acquisition that are fully
collateralized by investment instruments that would otherwise be Cash
Equivalents; provided that the terms of such repurchase agreements
comply with the guidelines set forth in the “Federal
Financial Institutions Examination Council Supervisory Policy -Repurchase
Agreements of Depository Institutions With Securities Dealers and
Others, as adopted by the Comptroller of the Currency on October 31, 1985”; (h)
investments, classified in accordance with GAAP as
current assets of Holdings or any of its Subsidiaries, in money market
investment programs registered under the Investment Company Act of 1940, which
are administered by financial institutions that have the highest rating
obtainable from either Moody’s or S&P, and the portfolios of which are
limited solely to Investments of the character, quality and maturity described
in clauses (a) through (g) of this definition; (i)
auction rate securities including tax-exempt, DRD  and fully-taxable
issues rated AA2/AA or better and with a maximum term
between auctions of 180 days; and (j) investments in municipal money market
funds, or direct investments in municipal money market securities including,
but not limited to, Variable Rate Demand Obligations (VRDOs),
synthetic floaters (P-Floats), R-Floats, municipal commercial paper, municipal
notes and bonds with maturities or resets of one year or less from settlement
date and a minimum rating of at least A-1 or VMIG-1
or underlying rating of Aa2 or AA or better.

 

“CFC” means a Person
that is a controlled foreign corporation under Section 957 of the Code.

 

“Change in Law” means
the occurrence, after the date of this Agreement, of any of the following: (a)
the adoption or taking effect of any law, rule, regulation or treaty, (b) any
change in any law, rule, regulation or treaty or in the administration,
interpretation or application thereof by any Governmental Authority or (c) the
making or issuance of any request, guideline or directive (whether or not
having the force of law) by any Governmental Authority.

 

“Change of Control”
means an event or series of events by which:

 

(a)           at any time prior to the creation of
a Public Market, the Permitted Holders, in the aggregate, shall cease to own
and control legally and beneficially (free and clear of all Liens), either
directly or indirectly, equity securities in Holdings representing more than 50%
of the combined economic and voting power of all of the equity securities
entitled to vote for members of the board of directors or equivalent governing
body of Holdings on a fully-diluted basis but excluding unvested options and
stock appreciation rights (and taking into account all such securities that the
Permitted Holders have the right to acquire pursuant to any option right (as
defined in clause (b) below)); or

 

(b)           at any time after the
creation of a Public Market, any “person” or “group”, (as such terms are used
in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but
excluding any employee benefit plan of such person or its subsidiaries, and any
person or entity acting in its capacity as trustee, agent or other fiduciary or
administrator of any such plan) other than the Permitted Holders becomes the “beneficial
owner” (as defined in Rules 13d-3 and 13 d-5 under the Securities Exchange Act of
1934, except that a person or group shall be deemed to have “beneficial
ownership” of all securities that such person or group has the right to
acquire, whether such right is exercisable

 

5

 

immediately or only after
the passage of time (such right, an “option right”)), directly or
indirectly, of more than 35% of the equity securities of
Holdings entitled to vote for members of the board of directors or equivalent
governing body of Holdings on a fully-diluted basis (and taking into account
all such securities that such “person” or “group” has the right to acquire
pursuant to any option right); or

 

(c)           Holdings shall cease, directly or
indirectly, to own and control legally and beneficially all of the Equity
Interests in the Borrower.

 

“Closing Date” means
January 11, 2007.

 

“Code” means the
Internal Revenue Code of 1986.

 

“Collateral” means
all of the “Collateral” or “Pledged Collateral” referred to in
the Collateral Documents and all of the other property that is or is intended
under the terms of the Collateral Documents to be subject to Liens in favor of
the Administrative Agent for the benefit of the Secured Parties, other than
Excluded Property.

 

“Collateral Documents”
means, collectively, the Security Agreement, the Intellectual Property Security
Agreement, each of the mortgages, collateral assignments, Joinder
Agreements, intellectual property security agreement supplements, security
agreements, pledge agreements or other similar agreements delivered to the
Administrative Agent pursuant to Section 6.12, and each of the other
agreements, instruments or documents that creates or purports to create a Lien
in favor of the Administrative Agent for the benefit of the Secured Parties.

 

“Commitment” means,
as to each Lender, its obligation to make Loans to the Borrower pursuant to Section
2.01 in an aggregate principal amount at any one time outstanding not to
exceed the amount set forth opposite such Lender’s name on Schedule 2.01
under the caption “Commitment” or opposite such caption in the Assignment and
Assumption pursuant to which such Lender becomes a party hereto, as applicable,
as such amount may be adjusted from time to time in accordance with this
Agreement.

 

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

 

“Compliance Certificate”
means a certificate substantially in the form of Exhibit D.

 

“Consolidated Adjusted
EBITDA” means, at any date of determination, an amount equal to Consolidated
Net Income of Holdings and its Subsidiaries on a consolidated basis for the
most recently completed Measurement Period plus (a) the following
to the extent deducted in calculating such Consolidated Net
Income: (i) Consolidated Interest Charges, (ii) the
provision for Federal, state, local and foreign income taxes payable, (iii)
depreciation and amortization expense, (iv) impairment of goodwill and other
non-cash charges (including write downs and impairment of property, plant,
equipment and intangibles and other long lived assets) or expenses which do not
represent a cash item in such period or in any future period (excluding

 

6

 

any such non-cash charge or
expense to the extent that it represents amortization of a prepaid cash expense),
(v) unrealized losses (or minus unrealized gains) from hedges and other
financial derivatives, ordinary course foreign currency exposure,
mark-to-market activity and lower of cost or market adjustments, (vi) non-cash
compensation expense, or other non-cash expenses or charges which do not
represent a cash item in such period or in any future period, arising from the
granting of stock options, the granting of stock appreciation rights and
similar arrangements (including any strike price reductions’ for
dividends paid, repricing, amendment, modification, substitution or
change of any stock option, stock appreciation rights or similar arrangements),
(vii) any financing or financial advisory fees, accounting fees, legal fees,
transfer or mortgage recording taxes and other out-of-pocket expenses of
Holdings or any of its Subsidiaries (including expenses of third parties paid
or reimbursed by Holdings or any of its Subsidiaries) incurred in connection
with the Merger, (viii) unusual and non-recurring cash charges, (ix) any financing
or financial advisory fees, accounting fees, legal fees, transfer or other
mortgage recording taxes and related out-of-pocket expenses of Holdings and its
Subsidiaries (including expenses of third parties paid or reimbursed by
Holdings or any of its Subsidiaries) incurred as a result of any acquisition permitted
under the terms of this Agreement or the issuance of any debt or equity
securities (including any Public Offering), any refinancing transaction or any
amendment or other modification of any debt instruments to the extent not
prohibited by the terms of the Loan Documents, (x) any other non-recurring
expenses reducing such Consolidated Net Income which do not represent a cash
item in such period or any future period (in each case of or by Holdings and
its Subsidiaries for such Measurement Period), (xi) that portion of any
Deferred Revenue Adjustment that would, in the absence of purchase accounting
adjustments relating to the Merger or any Permitted Acquisition, have been
recorded as revenue in such Measurement Period and (xii) with respect to any
Permitted Acquisition, expenses associated with the termination of any
contracts with third parties or the severance of any senior management of a
Person acquired in such Permitted Acquisition minus (b) the following to
the extent included in calculating such Consolidated Net Income: (i) Federal, state, local and foreign income tax credits,
(ii) all non-cash items increasing Consolidated Net Income other than ordinary
course accruals in accordance with GAAP and (iii)
that portion of any Deferred Cost Adjustment that would, in the absence of
purchase accounting adjustments relating to the Merger or any Permitted
Acquisition, have been recorded as an expense in such Measurement Period (in
each case of or by Holdings and its Subsidiaries for such Measurement Period); provided
that (a) Consolidated Adjusted EBITDA for the fiscal quarter ended (i) June 30, 2006 shall be $12,757,161 and (ii) September
30, 2006 shall be $15,375,989 and (b) Consolidated Adjusted EBITDA for the
fiscal quarters ended December 31, 2006 and March 31, 2007 shall each be calculated on a
pro forma basis as if the Merger had occurred on October 1, 2006 with such pro
forma adjustments as are consistent with those implied by the calculations in
the preceding clause (a) and otherwise are reasonably acceptable
to the Administrative Agent.

 

Consolidated Adjusted EBITDA
shall be calculated on a Pro Forma Basis to give effect to the Merger, any
Permitted Acquisitions and Disposition (other than any dispositions in the
ordinary course of business) consummated at any time on or after the first day
of any Measurement Period of Holdings as if the Merger and each such Permitted
Acquisition had been effected on the first day of such Measurement Period and
as if each such Disposition had been consummated on the day prior to the first
day of such Measurement Period, except that such pro forma
calculations may include operating expense and cost reductions for such period
resulting

 

7

 

from such transaction which
is being given pro forma effect that (i) have been realized or (ii)(a) for which the steps
necessary for the realization have been taken (or are taken concurrently with
such transaction) or (b) with respect to any transactions for which the steps
necessary for realization are reasonably expected to be taken within the six
month period following such transaction, in each case, including but not
limited to (1) reductions in personnel expenses, (2) reductions of
costs related to administrative functions, (3) reductions of costs related to
leased or owned properties and (4) reductions from the consolidation of
operations and streamlining of corporate overhead; provided that any
such operating expense and cost reductions for such period included in such pro forma calculations shall be certified to the
Administrative Agent by the chief financial officer of the Borrower.

 

“Consolidated Funded
Indebtedness” means, as of any date of determination, for Holdings and its
Subsidiaries on a consolidated basis, the sum of (a) the outstanding principal
amount of all obligations, whether current or long-term, for borrowed money
(including Obligations hereunder) and all obligations evidenced by bonds,
debentures, notes, loan agreements or other similar instruments, (b) all
purchase money Indebtedness, (c) all direct obligations arising under letters
of credit (including standby and commercial), bankers’ acceptances, bank
guaranties, surety bonds and similar instruments, (d) all obligations in
respect of the deferred purchase price of property or services (other than
trade accounts payable in the ordinary course of business), (e) all
Attributable Indebtedness, (f) without duplication, all Guarantees with respect
to outstanding Indebtedness of the types specified in clauses (a) through (e)
above of Persons other than the Borrower or any Subsidiary, and (g) all
Indebtedness of the types referred to in clauses (a) through (f) above of any
partnership or joint venture (other than a joint venture that is itself a
corporation or limited liability company) in which the Borrower or a Subsidiary
is a general partner or joint venturer, unless such
Indebtedness is expressly made non-recourse to the Borrower or such Subsidiary.

 

“Consolidated Interest
Charges” means, for any Measurement Period, the sum of (a) all interest,
premium payments, debt discount, fees, charges and related expenses in
connection with borrowed money (including capitalized interest) or in
connection with the deferred purchase price of assets, in each case to
the extent treated as interest in accordance with GAAP and (b) the portion of rent expense under
Capitalized Leases that is treated as interest in accordance with GAAP, in each case, of or by Holdings and its Subsidiaries
on a consolidated basis for the most recently completed Measurement
Period.

 

“Consolidated Leverage
Ratio” means, as of any date of determination, the ratio of (a)
Consolidated Funded Indebtedness less Excess Cash (as defined below) as
of such date to (b) Consolidated Adjusted EBITDA of Holdings and its
Subsidiaries on a consolidated basis for the most recently completed
Measurement Period. “Excess Cash” means, as of any date of
determination, the amount of cash and Cash Equivalents of Holdings and its
Subsidiaries in excess of $3,000,000.

 

“Consolidated Net Income”
means, at any date of determination, the net income (or loss) of Holdings and
its Subsidiaries on a consolidated basis for the most recently completed Measurement
Period; provided that Consolidated Net Income shall exclude (a)
extraordinary gains and extraordinary losses for such Measurement Period, (b)
the net income of any

 

8

 

Subsidiary during such
Measurement Period to the extent that the declaration or payment of dividends
or similar distributions by such Subsidiary of such income is not permitted by
operation of the terms of its Organization Documents or any agreement,
instrument or Law applicable to such Subsidiary during such Measurement Period,
except that Holdings’ equity in any net loss of any such Subsidiary for such
Measurement Period shall be included in determining Consolidated Net Income,
and (c) any income (or loss) for such Period of any Person if such Person is
not a Subsidiary, except that Holdings’ equity in the net income of any such
Person for such Measurement Period shall be included in Consolidated Net Income
up to the aggregate amount of cash actually distributed by such Person during
such Period to Holdings or a Subsidiary as a dividend or other distribution
(and in the case of a dividend or other distribution to a Subsidiary, such
Subsidiary is not precluded from further distributing such amount to Holdings
as described in clause (b) of this proviso) and (d) any non-cash after-tax
gains or losses attributable to any Disposition or returned surplus assets of
any Plan.

 

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

 

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

 

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

 

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

 

“Default Rate” means
an interest rate equal to (i) the Base Rate plus
(ii) the Applicable Rate, if any, applicable to Base Rate Loans plus  (iii) 2% per annum; provided,
however, that with respect to a Eurodollar Rate Loan, the Default Rate
shall be an interest rate equal to the interest rate (including any Applicable
Rate) otherwise applicable to such Loan plus  2% per annum.

 

“Defaulting Lender”
means any Lender that (a) has failed to fund any portion of the Loans required
to be funded by it hereunder within one Business Day of the date required to be
funded by it hereunder, (b) has otherwise failed to pay over to the
Administrative Agent or any other Lender any other amount required to be paid
by it hereunder within one Business Day of the date when due, unless the
subject of a good faith dispute, or (c) has been deemed insolvent or become the
subject of a bankruptcy or insolvency proceeding.

 

“Deferred Cost Adjustment”
means, with respect to the Merger or any Permitted Acquisition, the reduction
in the deferred costs reflected on the most recent balance sheet of,

 

9

 

with respect to the Merger,
Seller or, with respect to any Permitted Acquisition the Person acquired resulting
from fair valuing such deferred costs under the purchase method of accounting
for the Merger for such Permitted Acquisition

 

“Deferred Revenue
Adjustment” means, with respect to the Merger or any Permitted Acquisition,
the reduction in the deferred revenue reflected on the most recent balance
sheet of, with respect to the Merger, Seller or, with respect to any Permitted
Acquisition, the Person acquired resulting from fair valuing such deferred
revenue under the purchase method of accounting for the Merger or such
Permitted Acquisition.

 

“Disposition” or “Dispose”
means the sale, transfer, license, lease or other disposition (including any
sale and leaseback transaction) of any property by any Person (or the granting
of any option or other right to do any of the foregoing), including any sale,
assignment, transfer or other disposal, with or without recourse, of any notes
or accounts receivable or any rights and claims associated therewith.

 

“Disqualified Capital
Stock” means any Equity Interests of a Person or a Subsidiary thereof
issued after the date hereof which, by its terms (or by the terms of any
security into which it is convertible or for which it is exchangeable at the
option of the holder), or upon the happening of any event other than a change of
control, matures or is mandatorily redeemable,
pursuant to a sinking fund obligation or otherwise, or is redeemable at the
option of the holder thereof, in whole or in part, or would require the
mandatory payment of cash dividends on or prior to the Maturity Date, for cash
or securities constituting Indebtedness. Without limitation of the foregoing,
Disqualified Capital Stock shall be deemed to include any preferred stock of a
Person or a Subsidiary of such Person, with respect to which, under the terms of
such preferred stock, by agreement or otherwise, such Person or Subsidiary is
obligated to pay current dividends or distributions in cash during the period
prior to the Maturity Date; provided, however, that preferred
stock of a Person that is issued with the benefit of provisions requiring a
change of control offer to be made for such preferred stock in the event of a
change of control of such Person will not be deemed to be Disqualified Capital
Stock solely by virtue of such provisions.

 

“Dollar” and “$”
mean lawful money of the United States.

 

“Domestic Subsidiary”
means any Subsidiary that is organized under the laws of any political
subdivision of the United States.

 

“Eligible Assignee”
means any Person that meets the requirements to be an assignee under Section
11.06(b)(iii), (v) and (vi) (subject
to such consents, if any, as may be required under Section 11.06(b)(iii)).

 

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

 

10

 

 

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

 

“Environmental Permit” means any permit, approval or license
under any Environmental
Law.

 

“Equity Interests” means, with respect to any Person, all of the
shares of capital stock of (or other ownership or profit interests in) such
Person, all of the warrants, options or other rights for the purchase or
acquisition from such Person of shares of capital stock of (or other ownership
or profit interests in) such Person, all of the securities convertible into or
exchangeable for shares of capital stock of (or other ownership or profit
interests in) such Person or warrants, rights or options for the purchase or
acquisition from such Person of such shares (or such other interests), and all
of the other ownership or profit interests in such Person (including
partnership, member or trust interests therein), whether voting or nonvoting,
and whether or not such
shares, warrants, options, rights or other interests are outstanding on any
date of determination.

 

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

 

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

 

“ERISA Event” means (a) a Reportable Event with respect to a
Pension Plan; (b) with respect to a Pension Plan, the failure to satisfy the
minimum funding standard of Section 412 of the Code or the failure to make by
its due date a required contribution under Section 412(m) of the Code; (c) a
withdrawal by the Borrower or any ERISA Affiliate from a Pension Plan subject
to Section 4063 of ERISA during a plan year in which it was a substantial
employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of
operations that is treated as such a withdrawal under Section 4062(e) of ERISA;
(d) a complete or partial withdrawal by the Borrower or any ERISA Affiliate
from a Multiemployer Plan or notification that a Multiemployer Plan is in
reorganization; (e) the filing of a notice of intent to terminate a Pension
Plan, the treatment of a Plan amendment as a termination under Section 4041 or
4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a
Pension Plan or Multiemployer Plan; (f) an event or condition which constitutes
grounds under Section 4042 of ERISA for the termination of, or the appointment
of a trustee to administer, any Pension Plan or Multiemployer Plan; (g) the
making of any amendment to any Pension Plan which would result in the
imposition of a lien or the posting of a bond or other security; (h) the
occurrence of a non-exempt prohibited transaction (within the meaning of
Section 4975 of the Code or Section 406 of ERISA) which would result in liability
to the Borrower; or (i) the imposition of any liability

 

 

11

 

under Title IV
of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon the Borrower or any ERISA
Affiliate.

 

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

 

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

 

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

 

“Excess Cash Flow” means, for any fiscal year of Holdings, the
excess (if any) of (a) the sum of (i) Consolidated Adjusted EBITDA for such
fiscal year and (ii) the Capex Carryover Amount for a prior fiscal year
permitted to be used for Capital Expenditures during such fiscal year to the
extent not so used during such fiscal year over (b) the sum (for such
fiscal year) of (i) Consolidated Interest Charges actually paid in cash by Holdings
and its Subsidiaries, (ii) an amount equal to the aggregate amount of all
regularly scheduled principal payments or redemptions of outstanding
Consolidated Funded Indebtedness made during such period by Holdings and its
Subsidiaries and the aggregate principal amount of all prepayments made in
respect of such Consolidated Funded Indebtedness (other than any such
prepayment in respect of the Loans pursuant to Section 2.05(a)(i) during
such period), (iii) all income taxes actually paid in cash by Holdings and its
Subsidiaries, (iv) Capital Expenditures (except to the extent financed by
incurring Consolidated Funded Indebtedness or issuing Equity Interests)
actually made by Holdings and its Subsidiaries in such fiscal year, (v) the
Capex Carryover Amount for such fiscal year and (vi) cash expenses, costs, fees
or charges to the extent included in Consolidated Adjusted EBITDA for such
fiscal year pursuant to clauses (a)(vii), (viii), (ix) or (xii) of the
definition of “Consolidated Adjusted EBITDA” (including giving effect to any
cash pro forma adjustments from the Merger, any Permitted Acquisition and any
Disposition).

 

“Excluded Property” means: (a) any lease, license, permit,
contract, property right or agreement to which any Loan Party is a party or any
of such Loan Party’s rights or interests thereunder if and only for so long as
the grant of a Lien thereon shall (i) give any other Person party to such
lease, license, permit, contract, property rights or agreement the right to
terminate its obligations thereunder, (ii) constitute or result in the
abandonment, invalidation or unenforceability of any right, title or interest
of any Loan Party therein or (iii) constitute or result

 

12

 

in a breach or
termination pursuant to the terms of, or a default under, any such lease,
license, permit, contract, property rights or agreement (other than to the
extent that any such term would be rendered ineffective pursuant to Sections
9-406, 9-407, 9-408 or 9-409 of the UCC (or any successor provision or
provisions)); provided that such lease, license, permit, contract,
property right or agreement shall be Excluded Property only to the extent and
for so long as the consequences specified above shall exist and shall cease to be
Excluded Property and shall become subject to the Liens granted under the
Collateral Documents, immediately and automatically, at such time as such
consequences shall no longer exist; (b) any equipment (as such term is defined
in the UCC) owned by any Loan Party that is subject to a purchase money Lien or
a Capitalized Lease permitted pursuant to this Agreement if the contract or
other agreement in which such Lien is granted (or in the documentation
providing for such Capitalized Lease) prohibits or requires the consent of any
Person other than any Loan Party as a condition to the creation of any other
Lien on such equipment, but only, in each case, to the extent, and for so long
as, the Indebtedness secured by the applicable Lien or the Capitalized Lease
has not been repaid in full or the applicable prohibition (or consent
requirement) has not otherwise been removed or terminated; (c) any Equity
Interests in Holdings; (d) any Equity Interests in or property of any Excluded
Subsidiary; (e) any leasehold property or owned real property with a fair
market value of less than $4,000,000, (f) after the date hereof, any property
acquired by any Loan Party if and to the extent that the Administrative Agent
shall have reasonably determined that the costs (including, without limitation,
recording taxes and filing fees) of creating and perfecting a Lien on such
property interests are excessive in relation to the value of the security
afforded thereby; (g) motor vehicles (as such term is defined in the UCC) and
(h) cash, Cash Equivalents and all deposit and securities accounts (except to
the extent that the foregoing are or contain proceeds of any other Collateral).

 

“Excluded Subsidiary” means any (i) Unrestricted Subsidiary,
(ii) Subsidiary that is owned directly or indirectly by a CFC or (iii)
Subsidiary formed or acquired after the Closing Date that has (a) less than
$50,000 of assets and (b) revenues for its most recent fiscal year of $50,000 or less.

 

“Excluded Taxes” means, with respect to the Administrative Agent,
any Lender or any other recipient of any payment to be made by or on account of
any obligation of the Borrower hereunder, (a) taxes imposed on or measured by
its overall net income (however denominated), and franchise taxes imposed on it
(in lieu of net income taxes), by the jurisdiction (or any political
subdivision thereof) under the laws of which such recipient is organized or in
which its principal office is located or in which its applicable Lending Office
is located (in the case of any Lender) or in which it is engaged in business
(other than business that the Administrative Agent, any Lender or any other
recipient of any payment to be made by or on account of any obligation of the
Borrower hereunder is engaged in solely by reason of the transactions
contemplated by this Agreement), (b) any branch profits taxes imposed by the
United States or any similar tax imposed by any other jurisdiction in which the
Borrower is located and (c) in the case of a Foreign Lender (other than an
assignee pursuant to a request by the Borrower under Section 11.13), any
United States federal withholding tax that is imposed on amounts payable to
such Foreign Lender at the time such Foreign Lender becomes a party hereto (or
designates a new Lending Office) or is attributable to such Foreign Lender’s
failure or inability (other than as a result of a Change in Law) to comply with
Section 3.01(e), except to the

 

13

 

extent that
such Foreign Lender (or its assignor, if any) was entitled, at the time of
designation of a new Lending Office (or assignment), to receive additional
amounts from the Borrower with respect to such withholding tax pursuant to Section
3.01(a).

 

“Extraordinary Receipt” means any cash received by or paid to or
for the account of any Person in respect of (a) proceeds of insurance (other
than proceeds of business interruption insurance to the extent such proceeds
constitute compensation for lost earnings), or (b) condemnation awards (and
payments in lieu thereof).

 

“Facility” means, at any time, (a) on or prior to the Closing
Date, the aggregate amount of the Commitments at such time and (b) thereafter,
the aggregate principal amount of the Loans of all Lenders outstanding at such
time.

 

“Federal Funds Rate” means, for any day, the rate per annum
equal to the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal
funds brokers on such day, as published by the Federal Reserve Bank of New York
on the Business Day next succeeding such day; provided that (a) if such
day is not a Business Day, the Federal Funds Rate for such day shall be such
rate on such transactions on the next preceding Business Day as so published on
the next succeeding Business Day, and (b) if no such rate is so published on
such next succeeding Business Day, the Federal Funds Rate for such day shall be
the average rate (rounded upward, if necessary, to a whole multiple of 1/100 of
1%) charged to Bank of America on such day on such transactions as determined by the Administrative Agent.

 

“Fee Letter” means the letter agreement, dated October 30, 2006,
among RiskMetrics, the Administrative Agent and Banc of America Securities LLC.

 

“First Lien Loan Documents” means the First Lien Credit
Agreement and the other Loan Documents (as defined in the First Lien Credit
Agreement).

 

“First Lien Loans” means the senior secured term b loan facility
and the revolving credit
facility under the First Lien Credit Agreement.

 

“First Lien Credit Agreement” means (i) that certain credit
agreement dated as of the date hereof among the Borrower, Holdings, the lenders
party thereto, Bank of America, N.A., as administrative agent, swing line lender
and 1/c issuer, as amended, restated, supplemented or modified from time
to time to the extent permitted by this Agreement and the Intercreditor
Agreement and (ii) any other credit agreement, loan agreement, note agreement,
promissory note, indenture or other agreement or instrument evidencing or
governing the terms of any indebtedness
or other financial accommodation that has been incurred to extend (subject to
the limitations set forth herein and in the Intercreditor Agreement) or
refinance in whole or in part the indebtedness and other obligations outstanding
under the (x) credit agreement referred to in clause (i) or (y) any subsequent
First Lien Credit Agreement, unless such agreement or instrument expressly
provides that it is not intended to be and is not a First Lien Credit Agreement
hereunder. Any reference to the First Lien Credit Agreement hereunder shall be
deemed a reference to any First Lien Credit Agreement then in existence.

 

14

 

“Foreign Government Scheme or Arrangement” has the meaning
specified in Section 5.12(d).

 

“Foreign Lender” means any Lender that is not a “United States
Person” within the meaning of Section 7701(a)(30) of the Code.

 

“Foreign Plan” has the meaning specified in Section 5.12(d).

 

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

 

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

 

“GAAP” means generally accepted accounting principles in the
United States set forth 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
such other principles as may be approved by a significant segment of the
accounting profession in the United States, that are applicable to the
circumstances as of the date of determination, consistently applied.

 

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

 

“Guarantee” means, as to any Person, any (a) any obligation,
contingent or otherwise, of such Person guaranteeing or having the economic
effect of guaranteeing any Indebtedness or other obligation payable or
performable by another Person (the “primary obligor”) in any manner,
whether directly or indirectly, and including any obligation of such Person,
direct or indirect, (i) to purchase or pay (or advance or supply funds for the
purchase or payment of) such Indebtedness or other obligation, (ii) to purchase
or lease property, securities or services for the purpose of assuring the
obligee in respect of such Indebtedness or other obligation of the payment or
performance of such Indebtedness or other obligation, (iii) to maintain working
capital, equity capital or any other financial statement condition or liquidity
or level of income or cash flow of the primary obligor so as to enable the
primary obligor to pay such Indebtedness or other obligation, or (iv) entered
into for the purpose of assuring in any other manner the obligee in respect of
such Indebtedness or other obligation of the payment or performance thereof or
to protect such obligee against loss in respect thereof (in whole or in part),
or (b) any Lien on any assets of such Person securing any Indebtedness or other
obligation of any other Person, whether or not such Indebtedness or other
obligation is assumed by such Person (or any right, contingent or otherwise, of
any holder of such Indebtedness to obtain any such Lien). The amount of any
Guarantee shall be deemed to be an amount equal to the stated or determinable
amount of the related primary obligation, or portion thereof, in respect of
which

 

15

 

such Guarantee
is made or, if not stated or determinable, the maximum reasonably anticipated
liability in respect thereof as determined by the guaranteeing Person in good
faith. The term “Guarantee” as a verb has a corresponding meaning.

 

“Guarantors” means, collectively, Holdings, the direct and
indirect Subsidiaries of Holdings listed on Schedule 6.12 and each
other Subsidiary of Holdings that shall be required to execute and deliver a
guaranty or guaranty supplement pursuant to Section 6.12.

 

“Guaranty” means, collectively, the Guaranty made by Holdings
under Article X in favor of the Secured Parties and the Guaranty made by
the other Guarantors in favor of the Secured Parties, substantially in the form of
Exhibit F, together with each other guaranty and guaranty
supplement delivered pursuant to Section 6.12.

 

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

 

“Holdings”
has the meaning specified in the introductory paragraph hereto. 

 

“Increase
Effective Date” has the meaning specified in Section 2.14(a).

 

“Increase
Joinder” has the meaning specified in Section 2.14(c).

 

“Incremental
Commitment” has the meeting specified in Section 2.14(a).

 

“Incremental
Loans” has the meaning specified in Section 2.14(c).

 

“Incremental
Maturity Date” has the meaning specified in Section 2.14(c).

 

“Indebtedness”
means, as to any Person at a particular time, without duplication, all of the
following, whether or not included as indebtedness or liabilities in accordance
with GAAP:

 

(a)           all
obligations of such Person for borrowed money and all obligations of such
Person evidenced by bonds, debentures, notes, loan agreements or other similar
instruments;

 

(b)           the maximum
amount of all direct or contingent obligations of such Person arising under
letters of credit (including standby and commercial), bankers’ acceptances,
bank guaranties, surety bonds and similar instruments;

 

(c)           net obligations of
such Person under any Swap Contract;

 

(d)           all obligations of
such Person to pay the deferred purchase price of property or services;

 

16

 

(e)           indebtedness
(excluding prepaid interest thereon) secured by a Lien on property owned or
being purchased by such Person (including indebtedness arising under
conditional sales or other title retention agreements), whether or not such
indebtedness shall have been assumed by such Person or is limited in recourse;

 

(f)            all Attributable
Indebtedness in respect of Capitalized Leases and Synthetic Lease Obligations
of such Person and all Synthetic Debt of such Person;

 

(g)           all obligations of
such Person to purchase, redeem, retire, defease or otherwise make any payment in respect of any
Equity Interest in such Person or any other Person or any warrant, right
or option to acquire such Equity Interest, valued, in the case of a redeemable
preferred interest, at the greater of its voluntary or involuntary liquidation
preference plus accrued and unpaid dividends; and

 

(h)           all Guarantees of such Person
in respect of any of the foregoing;

 

provided,
however, that “Indebtedness” shall not include (i) any obligations under
any operating leases, (ii) trade accounts payable, trade credit or accrued
expenses arising in the ordinary course of
business and trade letters of credit issued in support of trade accounts
payable and, trade credit arising in the ordinary course of business,
(iii) any obligation to reimburse issuers of surety bonds issued in the
ordinary course of business, or (iv) amounts owing in respect of existing
preferred stock and other preferred stock (other than Disqualified Stock issued
after the Closing Date that would be treated as Indebtedness under GAAP as in
effect at such time).

 

For all
purposes hereof, the Indebtedness of any Person shall include the Indebtedness
of any partnership or joint venture (other than a joint venture that is itself
a corporation or limited liability company) in which such Person is a general
partner or a joint venturer, unless such Indebtedness is expressly made
non-recourse to such Person. The amount of any net obligation under any Swap
Contract on any date shall be deemed to be the Swap Termination Value thereof
as of such date.

 

“Indebtedness
to be Repaid” means the obligations set forth on Schedule 1.01(a).

 

“Indemnified
Taxes” means Taxes other than Excluded Taxes. 

 

“Indemnitees”
has the meaning specified in Section 11.04(b).

 

“Information”
has the meaning specified in Section 11.07.

 

“Intellectual
Property Security Agreement” has the meaning specified in Section
4.01(a)(v).

 

“Intercompany
Note” has the meaning specified in the Security Agreement.

 

“Intercreditor
Agreement” shall mean that certain Intercreditor Agreement dated as of the
Closing Date among the Administrative Agent and Bank of America, N.A. as the

 

17

 

administrative
agent under the First Lien Credit Agreement, and acknowledged by the Borrower,
substantially in the form of Exhibit J.

 

“Interest
Payment Date” means, (a) as to any Eurodollar Rate Loan, the last day of
each Interest Period applicable to such Loan and the Maturity Date; provided,
however, that if any Interest Period for a Eurodollar Rate Loan exceeds
three months, the respective dates that fall every three months after the
beginning of such Interest Period shall also be Interest Payment Dates; and (b)
as to any Base Rate Loan, the last Business Day of each March, June, September and December and the Maturity Date.

 

“Interest
Period” means, as to each Eurodollar Rate Loan, the period commencing on
the date such Eurodollar Rate Loan is disbursed or converted to or continued as
a Eurodollar Rate Loan and ending on the date one, two, three or six months
thereafter, as selected by the Borrower in its Committed Loan Notice or such
other period that is twelve months or less requested by the Borrower, if consented
to by all Lenders; provided that:

 

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

 

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

 

(c)           no Interest Period
shall extend beyond the Maturity Date.

 

“Investment”
means, as to any Person, any direct or indirect acquisition or investment by
such Person, whether by means of (a) the purchase or other acquisition of
Equity Interests of another Person, (b) a loan, advance or capital contribution
to, Guarantee or assumption of debt of, or purchase or other acquisition of any
other debt or interest in, another Person,, or (c) the purchase or other
acquisition (in one transaction or a series of transactions) of assets of
another Person that constitute a business unit or all or a substantial part of
the business of, such Person. For purposes of covenant compliance, the amount
of any Investment shall be the amount actually invested (net of any return of
capital in respect thereof), without adjustment for subsequent increases or
decreases in the value of such Investment.

 

“JRS” means the
United States Internal Revenue Service.

 

“ISS” has the meaning specified in preliminary
statements hereto.

 

“ISS Audited Financial
Statements” means the audited consolidated balance sheet of Seller and its
Subsidiaries for the fiscal year ended December 31, 2005, and the related consolidated
statements of income or operations, shareholders’ equity and cash flows for
such fiscal year of Seller and its Subsidiaries, including the notes thereto.

 

18

 

“ISS
Material Adverse Effect” means “Material Adverse Effect”
as defined in the Merger Agreement.

 

“ISS Merger”
has the meaning specified in preliminary statements hereto.

 

“Joinder
Agreement” has the meaning specified in the Security Agreement.

 

“Joint
Venture” means a corporation, partnership, limited liability company, joint
venture or other similar arrangement (whether created by contract or conducted
through a separate legal entity) which is not a Subsidiary of any Loan Party or
any of their respective Subsidiaries and which is now or hereafter formed by
any Loan Party or any of their respective Subsidiaries with another Person in
order to conduct a common venture or enterprise with such Person.

 

“Laws”
means, collectively, all international, foreign, Federal, state and local statutes,
treaties, rules, guidelines, regulations, ordinances, codes and administrative
or judicial precedents
or. authorities and all applicable administrative orders, directed duties,
licenses, authorizations and permits of, and agreements with, any Governmental
Authority, in each case where such have the force of law.

 

“Lender”
has the meaning specified in the introductory paragraph hereto and at any time,
(a) on or prior to the Closing Date, any Lender that has a Commitment at such
time and (b) at any time after the Closing Date, any Lender that holds Loans at
such time.

 

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

 

“Licensed
Intellectual Property” has the meaning specified in Section 5.16.

 

“Lien“ means, with
respect to any property, (a) any mortgage, deed of trust, deed to secure
debt, lien (statutory or otherwise), pledge, hypothecation, encumbrance,
collateral assignment, charge or security interest in, on or of such property,
(b) the interest of a vendor or a lessor under any conditional sale agreement,
capital lease or title retention agreement (or any financing lease having
substantially the same economic effect as any of the foregoing), relating to
such Property, and (c) in the case of Equity Interests or debt securities, any
purchase option, call or similar right of a third party with respect to such
Equity Interests or debt securities. For the avoidance of doubt, “Lien” shall
not include any netting or set-off arrangements under any Contractual
Obligation (other than any Contractual Obligation constituting debt for
borrowed money or having the effect of debt for borrowed money) otherwise
permitted under the terms of this Agreement.

 

“Loan”
means an advance made by any Lender to the Borrower under Article II.

 

“Loan
Documents” means, collectively, (a) this Agreement, (b) the Notes, (c) the
Guaranty, (d) the Collateral Documents, and (e) the Intercreditor Agreement.

 

19

 

“Loan
Parties” means, collectively, the Borrower and each Guarantor.

 

“Material
Adverse Effect” means (a) a material adverse change in, or a material
adverse effect upon, the results of operations, business, properties, or
financial condition of Holdings and its Subsidiaries taken as a whole; (b) a
material impairment of the rights and remedies, taken as a whole, of the Administrative
Agent or any Lender under any Loan Document, or of the ability of any Loan
Party to perform its material obligations under any Loan Document to which it
is a party; or (c) a material adverse effect upon the legality, validity,
binding effect or enforceability against any Loan Party of any Loan Document to
which it is a party.

 

“Material
Contract” means, with respect to any Person, each contract to which such
Person is a party involving aggregate consideration payable to or by such
Person of $5,000,000 or more in any year or otherwise material to the business,
financial condition or results of operations of such Person.

 

“Maturity
Date” means July 11, 2014; provided, however, that, in each
case, if such date is not a Business Day, the Maturity Date shall be the next
preceding Business Day.

 

“Measurement
Period” means, at any date of determination, the most recently completed
four fiscal quarters of Holdings or, if fewer than four consecutive fiscal
quarters of Holdings have been completed since the Closing Date, the fiscal
quarters of Holdings that have been completed since the Closing Date taken
together with the number of fiscal quarters preceding the Closing Date of the
Borrower on a pro forma combined basis equal to four minus the number of fiscal quarters of Holdings
that have been completed since the Closing Date.

 

“Merger”
has the meaning specified in the Preliminary Statements.

 

“Merger
Agreement” has the meaning specified in the Preliminary Statements.

 

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

 

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

 

“Net Cash
Proceeds” means, (a) with respect to any Disposition (other than any
Disposition permitted under Section 7.05(a) through (f) or Section
7.05(h)), the excess, if any, of (i) the sum of cash and Cash Equivalents
received in connection with such Disposition (including any cash or Cash
Equivalents received by way of deferred payment pursuant to, or by monetization
of, a note receivable or otherwise, but only as and when so received) over (ii)
the sum of (A) the principal amount of any Indebtedness (other than
Indebtedness under the Loan Documents) that is secured by such asset and that
is required to be repaid in connection with such Disposition, (B) the
out-of-pocket costs, fees, commissions, premiums and expenses (including
attorneys fees, accountants’ fees, investment banking fees, survey costs, title
insurance premiums and related search and recording charges, transfer taxes,
deed or mortgage

 

20

 

recording
taxes) incurred by Holdings or its Subsidiaries in connection with such
Disposition, and (C) provisions for all federal, state, provincial, foreign and
local taxes reasonably estimated to be actually payable by the Loan Parties and
their Subsidiaries in connection with such Disposition, and (D) amounts
required to be paid to any Person (other than the Borrower or any Subsidiary of
the Borrower) having an interest in the asset subject to such Disposition; provided
however, that Net Cash Proceeds shall not include any such amounts that do
not exceed $2,500,000 in the aggregate in any fiscal year;

 

(b)           with respect to the incurrence or
issuance of any Indebtedness by Holdings or any of its Subsidiaries (other than
Indebtedness incurred or issued pursuant to Section 7.02), the excess of (i)
the sum of cash and Cash Equivalents received in connection with such
incurrence or issuance over (ii) the underwriting discounts and commissions or
other similar payments and other out-of-pocket costs, fees, commissions,
premiums and expenses (including attorneys fees, accountants’ fees, investment
banking fees, survey costs, title insurance premiums and related search and
recording charges, transfer taxes, deed or mortgage recording taxes) incurred
by Holdings or its Subsidiaries in connection with such incurrence or issuance;
and

 

(c)           with respect to any Extraordinary
Receipt, the excess of (i) the sum of the cash and Cash Equivalents received in
connection with such Extraordinary Receipt over (ii) the sum of (A) the
principal amount of any Indebtedness (other than Indebtedness under the Loan
Documents) that is secured by the asset in respect of which such Extraordinary
Receipt is received and that is required to be repaid with such Extraordinary
Receipt, (B) the out-of-pocket costs, fees, commissions, premiums and expenses
(including attorneys fees, accountants’ fees, investment banking fees, survey
costs, title insurance premiums and related search and recording charges,
transfer taxes, deed or mortgage recording taxes) incurred by Holdings or its
Subsidiaries in connection with such Extraordinary Receipt, and (C) provisions
for all federal, state, provincial, foreign and local taxes reasonably
estimated (on a consolidated basis) to be actually payable as a result of such
Extraordinary Receipt, and (D) amounts required to be paid to any Person (other
than the Borrower or any Subsidiary of the Borrower) having an interest in the
asset in respect of which such Extraordinary Receipt is received; provided,
however, that Net Cash Proceeds shall not include any such amounts that
do not exceed $2,500,000 in the aggregate in any fiscal year.

 

“Note”
means a promissory note made by the Borrower in favor of a Lender, evidencing
Loans made by such Lender, substantially in the form of Exhibit C.

 

“Notice of
Election” means a notice substantially in the form of Exhibit K
hereto.

 

“Obligations”
means all advances to, and debts, liabilities, obligations, covenants and
duties of, any Loan Party arising under any Loan Document or otherwise with
respect to any Loan, whether direct or indirect (including those acquired by
assumption), absolute or contingent, due or to become due, now existing or
hereafter arising and including interest and fees that accrue after the
commencement by or against any Loan Party or any Affiliate thereof of any
proceeding under any Debtor Relief Laws naming such Person as the debtor in
such proceeding, regardless of whether such interest and fees are allowed
claims in such proceeding.

 

21

 

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

 

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

 

“Owned
Intellectual Property” has the meaning specified in Section 5.16.

 

“Participant”
has the meaning specified in Section 11.06(d).

 

“PBGC”
means the Pension Benefit Guaranty Corporation.

 

“PCAOB”
means the Public Company Accounting Oversight Board.

 

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

 

“Perfection
Certificate” means a certificate in the form of Exhibit I or any
other form approved by the Administrative Agent, as the same shall be
supplemented from time to time.

 

“Permitted
Acquisition” has the meaning specified in Section 7.03(h).

 

“Permitted
Holders” means Sponsor and any member of the Berman Family.

 

“Permitted
Refinancing” means, with respect to any Person, any modification,
refinancing, refunding, renewal or extension of any Indebtedness of such
Person; provided that (i) the principal amount
(or accreted value, if applicable) thereof does not exceed the principal amount
(or accreted value, if applicable) of the Indebtedness so modified, refinanced,
refunded, renewed or extended except by an amount equal to any interest
capitalized in connection with, any premium or other reasonable amount paid,
and fees and expenses reasonably incurred, in connection with such
modification, refinancing, refunding, renewal or extension and by an amount
equal to any existing commitments unutilized thereunder or as otherwise
permitted

 

22

 

pursuant to Section
7.02, (ii) such modification, refinancing, refunding, renewal or extension
has a final maturity date equal to or later than the final maturity date of,
and has a Weighted Average Life to Maturity equal to or greater than the
Weighted Average Life to Maturity of, the Indebtedness being modified,
refinanced, refunded, renewed or extended, (iii) if the Indebtedness being
modified, refinanced, refunded, renewed or extended is subordinated in right of
payment to the Obligations, such modification, refinancing, refunding, renewal
or extension is subordinated in right of payment to the Obligations on terms at
least as favorable on the whole to the Lenders as those contained in the
documentation governing the Indebtedness being modified, refinanced, refunded,
renewed or extended, (iv) such modification, refinancing, refunding, renewal or
extension is incurred by the Person who is the obligor on the Indebtedness
being modified, refinanced, refunded, renewed or extended, and (v) at the time
thereof, no Event of Default shall have occurred and be continuing.

 

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

 

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

 

“Platform”
has the meaning specified in Section 6.02.

 

“Pledged
Securities” has the meaning specified in the Security Agreement.

 

“Pro Forma
Basis” shall mean on a basis consistent with GAAP and Regulation S-X under the Securities Act of 1933 or as
otherwise agreed to by the Arrangers.

 

“Public
Market” shall exist if (a) a Public Offering has been consummated and (b)
any Equity Interests of Holdings have been distributed by means of an effective
registration statement under the Securities Act of 1933.

 

“Public
Offering” means a public offering of the Equity Interests of Holdings.
pursuant to an effective registration statement under the Securities Act of
1933.

 

“Register”
has the meaning specified in Section 11 .06(c).

 

“Registered
Public Accounting Firm” has the meaning specified by the Securities Laws
and shall be independent of Holdings as prescribed by the Securities Laws.

 

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

 

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

 

23

 

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

 

“Required Lenders”
means, as of any date of determination, Lenders holding more than 50% of
the Facility on such date; provided that the portion of the Facility
held by any Defaulting Lender shall be excluded for purposes of making a
determination, of Required Lenders.

 

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

 

“Restricted Payment”
means any dividend or other distribution (whether in cash, securities or other
property) with respect to any capital stock or other Equity Interest of any
Person or any of its Subsidiaries, or any payment (whether in cash, securities
or other property), including any sinking fund or similar
deposit, on account of the purchase, redemption, retirement, defeasance,
acquisition, cancellation or termination of any such capital stock or other
Equity Interest, or on account of any return of capital to any Person’s
stockholders, partners or members (or the equivalent of any thereof), or any
option, warrant or other right to acquire any such dividend or other
distribution or payment.

 

“RiskMetrics”
has the meaning specified in the Preliminary Statements.

 

“RMG
Audited Financial Statements” means the audited consolidated balance sheet
of RiskMetrics and its Subsidiaries for the fiscal year ended December 31,
2005, and the related consolidated statements of income or operations,
shareholders’ equity’ and cash flows for’ such fiscal year of RiskMetrics and
its Subsidiaries, including the notes thereto.

 

“RMG Holdco”
has the meaning specified in the Preliminary Statements.

 

“RMG Merger”
has the meaning specified in the Preliminary Statements.

 

“RMG Merger
Sub” has the meaning specified in the Preliminary Statements.

 

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

 

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

 

“Secured
Parties” means, collectively, the Administrative Agent, the Lenders, each
co-agent or sub-agent appointed by the Administrative Agent from time to time
pursuant to Section 9.05.

 

24

 

“Securities
Laws” means the Securities Act of 1933, the Securities Exchange Act of
1934, Sarbanes-Oxley, and the applicable accounting and auditing principles,
rules, standards and practices promulgated, approved or incorporated by the SEC
or the PCAOB.

 

“Security
Agreement” has the meaning specified in Section 4.01(a)(iii).

 

“Seller”
has the meaning specified in the Preliminary Statements.

 

“Significant
Subsidiary” means, at any date of determination, any Subsidiary of the Borrower that, either individually or
together with its Subsidiaries, taken as a whole, has revenues, assets
or earnings in an amount equal to at least 2% of (a) the consolidated revenues
of the Borrower and its Subsidiaries for the most recently completed fiscal
quarter for which the Lenders have received financial statements of Holdings
and its Subsidiaries pursuant to Section 6.01(a) or 6.01(b), (b)
the consolidated assets of the Borrower and its Subsidiaries as of the last day
of the most recently completed fiscal quarter for which the Lenders have
received financial statements of
Holdings and its Subsidiaries pursuant to Section 6.01(a) or 6.01(b),
or (c) the consolidated net earnings of the Borrower and its
Subsidiaries for the most recently completed fiscal quarter for which the
Lenders have received financial statements of Holdings and its Subsidiaries pursuant to Section 6.01(a)
or 6.01(b), respectively, in each case determined in accordance
with GAAP for such period.

 

“Solvent”
and “Solvency” mean, with respect to any Person on any date of
determination, that on such date (a) the fair value of the property of such
Person and its Subsidiaries, on a consolidated basis, is greater than the total
amount of liabilities, including contingent liabilities, of such Person and its
Subsidiaries, on a consolidated basis, (b) the present fair salable value of
the assets of such Person and its Subsidiaries, on a consolidated basis, is not
less than the
amount that will be required to pay the probable liability, of such Person on
its debts as they become absolute and matured, (c) such Person does not
intend to, and does not believe that it will, incur debts or liabilities beyond
such Person’s and its Subsidiaries’, on a consolidated basis, ability to pay
such debts and liabilities as they mature, and (d) such Person and its
Subsidiaries, on a consolidated basis, is not engaged in business or a
transaction, and is not about to engage in business or a transaction, for which
such Person’s and its Subsidiaries’, on a consolidated basis, property would
constitute an unreasonably small capital. The amount of contingent liabilities
at any time shall be computed as the amount that, in the light of all the facts
and circumstances existing at such time, represents the amount that can
reasonably be expected to become an actual or matured liability.

 

“Sponsor”
means, collectively, (i) Spectrum Equity Investors IV, L.P., Spectrum Equity
Investors V, L.P., Applegate & Collatos, Inc., Applegate & Collatos,
LLC and their respective controlled Affiliates, (ii) controlled Affiliates of
General Atlantic LLC and (iii) Technology Crossover Management V, L.L.C. and
its controlled Affiliates.

 

“Subsidiary”
of a Person means a corporation, partnership, joint venture, limited liability
company or other business entity of which a majority of the shares of
securities or other interests having ordinary voting power for the election of
directors or other governing body (other than securities or interests having
such power only by reason of the happening of a contingency) are at the time
beneficially owned, or the management of which is otherwise

 

25

 

controlled,
directly, or indirectly through one or more intermediaries, or both, by such
Person. Unless otherwise specified, all references herein to a “Subsidiary”
or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of
Holdings. Notwithstanding the foregoing (except for the definition of “Unrestricted
Subsidiary” contained herein), an Unrestricted Subsidiary shall be deemed not
to be a Subsidiary of Holdings or any of its Subsidiaries for purposes of this
Agreement.

 

“Subsidiary
Redesignation” has the meaning specified in Section 6.17.

 

“Swap
Contract” means (a) any and all rate swap transactions, basis swaps, credit
derivative transactions, forward rate transactions, commodity swaps, commodity
options, forward commodity contracts, equity or equity index swaps or options,
bond or bond price or bond index swaps or options or forward bond or forward
bond price Or forward bond index transactions, interest rate options, forward
foreign exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap transactions, cross-currency rate swap
transactions, currency options, spot contracts, or any other similar
transactions or any combination of any of the foregoing (including any options
to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and (b) any and all
transactions of any kind, and the related confirmations, which are subject to the
terms and conditions of, or governed by, any form of master agreement published
by the International Swaps and Derivatives Association, Inc., any International
Foreign Exchange Master Agreement, or any other master agreement (any such
master agreement, together with any related schedules, a “Master Agreement”),
including any such obligations or liabilities under any Master Agreement.

 

“Swap
Termination Value” means, in respect of any one or more Swap Contracts,
after taking into account the effect of any legally enforceable netting
agreement relating to such Swap Contracts, (a) for any date on or after the
date such Swap Contracts have been closed out and termination value(s)
determined in accordance therewith, such termination value(s), and (b) for any
date prior to the date referenced in clause (a), the amount(s) determined as
the mark-to-market value(s) for such Swap Contracts, as determined based upon
one or more mid-market or other readily available quotations provided by any
recognized dealer in such Swap Contracts (which may include a Lender or any
Affiliate of a Lender).

 

“Synthetic
Debt” means, with respect to any Person as of any date of determination
thereof, all obligations of such Person in respect of transactions entered into
by such Person that are intended to function primarily as a borrowing of funds
(including any minority interest transactions that function primarily as a
borrowing) but are not otherwise included in the definition of “Indebtedness”
or’ as a liability on the consolidated balance sheet of such Person and its
Subsidiaries in accordance with GAAP.

 

“Synthetic
Lease Obligation” means the monetary obligation of a Person under (a) a
so-called synthetic, off-balance sheet or tax retention lease, or (b) an
agreement for the use or possession of property (including sale and leaseback
transactions), in each case, creating obligations that do not appear on the
balance sheet of such Person but which, upon the application of any Debtor
Relief Laws to such Person, would be characterized as the indebtedness of such
Person (without regard to accounting treatment).

 

26

 

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

 

“Threshold
Amount” means $12,500,000.

 

“Transaction”
means, collectively, (a) the organization of Holdings and the issuance of
Equity Interests therein to the Permitted Holders and other stockholders and
option holders of RiskMetrics, the Rollover Equity Contribution, the rollover
of options in the Seller into Holdings, and the granting of options and stock
appreciation rights in Holdings to employees of the Loan Parties, (b) the
consummation of the Merger, (c) the entering into by the Loan Parties and their
applicable Subsidiaries of the Loan Documents to which they are or are intended
to be a party, (d) the refinancing of certain outstanding Indebtedness of the
Borrower, Seller and their respective Subsidiaries and the termination of all
commitments with respect thereto and (e) the payment of the fees and expenses incurred in
connection with the consummation of the foregoing.

 

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

 

“UCC”
means the Uniform Commercial Code as in effect in the State of New York; provided
that, if perfection or the effect of perfection, or non-perfection or the
priority of any security interest in any Collateral is governed by the Uniform
Commercial Code as in effect in a jurisdiction other than the State of New
York, “UCC” means the Uniform Commercial Code as in effect from time to
time in such other jurisdiction for purposes of the provisions hereof relating
to such perfection, effect of perfection or non-perfection or priority.

 

“Unfunded
Pension Liability” means, the excess of a Pension Plan’s benefit
liabilities under Section 4001(a)(16) of ERISA, over the current value of that
Pension Plan’s assets, determined in accordance with the assumptions used for
funding the Pension Plan pursuant to Section 412 of the Code for the applicable
plan year.

 

“United
States” and “U.S.” mean the United States of America.

 

“Unrestricted
Subsidiary” means any Subsidiary of Holdings designated as an Unrestricted
Subsidiary pursuant to Section 6.17.

 

“U.S. Loan
Party” means any Loan Party that is organized under the laws of one of the
states of the United States of America and that is not a CFC.

 

“Weighted
Average Life to Maturity” means, when applied to any Indebtedness at any
date, the number of years obtained by dividing: (i) the sum of the products
obtained by multiplying (A) the amount of each then remaining installment,
sinking fund, serial maturity or other required payments of principal,
including payment at final maturity, in respect thereof, by (B) the number of
years (calculated to the nearest one-twelfth) that will elapse between such
date and the making of such payment; by (ii) the then outstanding principal
amount of such Indebtedness.

 

27

 

1.02.       Other Interpretive Provisions.
With reference to this Agreement and each other Loan Document, unless otherwise
specified herein or in such other Loan Document:

 

(a)           The definitions of terms
herein shall apply equally to the singular and plural forms of the terms
defined. Whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neuter forms. The words “include,”
“includes” and “including” shall be deemed to be followed by the
phrase “without limitation.” The word “will” shall be construed to have the same meaning
and effect as the word “shall.” Unless the context requires
otherwise, (i) any definition of or reference to any agreement, instrument or
other document (including any Organization Document) shall be construed as
referring to such agreement, instrument or other document as from time to time
amended, supplemented or otherwise modified (subject to any restrictions on
such amendments, supplements or modifications
set forth herein or in any Other Loan Document), (ii) any reference herein to
any Person shall be construed to include such Person’s successors and
assigns, (iii) the words “herein,” “hereof” and “hereunder,”
and words of similar import when used in any Loan Document, shall be construed
to refer to such Loan Document in its entirety and not to any particular
provision thereof, (iv) all references in a Loan Document to Articles,
Sections, Preliminary Statements, Exhibits and Schedules shall be construed to
refer to Articles and Sections of, and Preliminary Statements, Exhibits and
Schedules to, the Loan Document in which such references appear, (v) any
reference to any law shall include all statutory and regulatory provisions
consolidating, amending, replacing or interpreting such law and any reference
to any law or regulation shall, unless otherwise specified, refer to such law
or regulation as amended, modified or
supplemented from time to time, and (vi) the words “asset“ and “property” shall be construed to
have the same meaning and effect and to refer to any and all tangible
and intangible assets and properties, including cash, securities, accounts and
contract rights.

 

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

 

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

 

1.03.       Accounting Terms.

 

(a)           Generally. All accounting
terms not specifically or completely defined herein shall be construed in conformity with,
and all, financial data (including financial ratios and other financial
calculations) required to be submitted pursuant to this Agreement shall be
prepared in conformity with, GAAP applied on a consistent basis, as in effect
from time to time.

 

(b)           Changes in GAAP. If at any time any change
in GAAP would affect the computation of any financial ratio or requirement set
forth in any Loan Document, and either the Borrower or the Required Lenders
shall so request, the Administrative Agent, the Lenders and the Borrower shall
negotiate in good faith to amend such ratio or requirement to preserve the
original intent thereof in light of such change in GAAP (subject to the
approval of the Required

 

28

 

Lenders); provided
that, until so amended, (i) such ratio or requirement shall continue to be
computed in accordance with GAAP prior to such change therein and (ii) the
Borrower shall provide to the Administrative Agent and the Lenders financial
statements and other documents required under this Agreement or as reasonably
requested hereunder setting forth a reconciliation between calculations of such
ratio or requirement made before and after giving effect to such change in
GAAP.

 

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

 

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

 

1.06.       [Reserved].

 

1.07.       Currency Equivalents Generally.
Any amount specified in this Agreement (other than in Articles II, IX and X) or any of the other Loan Documents to
be in Dollars shall also include the equivalent of such amount in any currency
other than Dollars, such equivalent amount thereof in the applicable currency
to be determined by the Administrative Agent at such time on the basis of the
Spot Rate (as defined below) for the purchase of such currency with Dollars.
For purposes of this Section 1.07, the “Spot Rate” for a currency
means the rate determined by the
Administrative Agent to be the rate quoted by the Person acting in such capacity
as the spot rate for the purchase by such Person of such currency with another
currency through its principal foreign exchange trading office at approximately
11:00 a.m. on the date two Business Days prior to the date of such
determination; provided that the Administrative Agent may obtain such
spot rate from another financial institution designated by the Administrative
Agent if the Person acting in such capacity does not have as of the date of
determination a spot buying rate for any such currency.

 

ARTICLE II
 THE LOANS

 

2.01.       The Loans. Subject to the terms and
conditions set forth herein, each Lender severally agrees to make a single loan
to the Borrower on the Closing Date in an amount not to exceed such Lender’s
Commitment. The Borrowing shall consist of Loans. made simultaneously by the
Lenders in accordance with their respective Commitments. Amounts borrowed under
this Section 2.01 and repaid or prepaid may not be reborrowed. Loans may
be Base Rate Loans or Eurodollar Rate Loans as further provided herein.

 

2.02.       Borrowing, Conversions and
Continuations of Loans.

 

(a)           The Borrowing, each conversion of
Loans from one Type to the other, and each continuation of Eurodollar Rate
Loans shall be made upon the Borrower’s irrevocable notice to the
Administrative Agent, which may be given by telephone. Each such notice must be

 

29

 

received by
the Administrative Agent not later than 11:00 a.m. (i) three Business Days
prior to the requested date of the Borrowing of, conversion to or continuation
of Eurodollar Rate Loans or of any conversion of Eurodollar Rate Loans to Base
Rate Loans, and (ii) on the requested date of the Borrowing of Base Rate Loans;
provided, however, that if the Borrower wishes to request
Eurodollar Rate Loans having an Interest Period other than one, two, three or
six months in duration as provided in the definition of “Interest Period,” the
applicable notice must be received by the Administrative Agent not later than
11:00 a.m. four Business Days prior to the requested date of the Borrowing, or
such conversion or continuation, whereupon the Administrative Agent shall give
prompt notice to the Lenders of such request and determine whether the
requested Interest Period is acceptable to all of them. Not later than 11:00
a.m., three Business Days before the requested date of the Borrowing, or such
conversion or continuation, the Administrative Agent shall notify the Borrower
(which notice may be by telephone) whether or not the requested Interest Period
has been consented to by all the Lenders. Each telephonic notice by the
Borrower pursuant to this Section 2.02(a) must be confirmed promptly by
delivery to the Administrative Agent of a written Committed Loan Notice,
appropriately completed and signed by a Responsible Officer of the Borrower.
The Borrowing of, conversion to or continuation of Eurodollar Rate Loans shall
be in a principal amount of $2,000,000 or a whole multiple of $1,000,000 in
excess thereof. Each Borrowing of or conversion to Base Rate Loans shall be in
a principal amount of $500,000 or a whole multiple of $100,000 in excess
thereof. Each Committed Loan Notice (whether telephonic or written) shall
specify (i) whether the Borrower is requesting the Borrowing, a conversion of
Loans from one Type to the other, or a continuation of Eurodollar Rate Loans,
(ii) the requested date of the Borrowing, conversion or continuation, as the
case may be (which shall be a Business Day), (iii) the principal amount of
Loans to be borrowed, converted or continued, (iv) the Type of Loans to be
borrowed or to which existing Loans are to be converted, and (v) if applicable,
the duration of the Interest Period with respect thereto. If the Borrower fails
to specify a Type of Loan in a Committed Loan Notice or if the Borrower fails
to give a timely notice requesting a conversion or continuation, then the
applicable Loans shall be made as, or converted to, Base Rate Loans. Any such
automatic conversion to Base Rate Loans shall be effective as of the last day
of the Interest Period then in effect with respect to the applicable Eurodollar
Rate Loans. If the Borrower requests the Borrowing of, conversion to, or
continuation of Eurodollar Rate Loans in any such Committed Loan Notice, but
fails to specify an Interest Period, it will be deemed to have specified an
Interest Period of one month.

 

(b)           Following receipt of a Committed Loan Notice, the
Administrative Agent shall promptly notify each Lender of the amount of its
Applicable Percentage of the Loans, and if no timely notice of a conversion or
continuation is provided by the Borrower, the Administrative Agent shall notify each Lender of the details of any
automatic conversion to Base Rate Loans described in Section 2.02(a).
In the case of the Borrowing, each Appropriate Lender shall make the amount of
its Loan available to the Administrative Agent in immediately available funds
at the Administrative Agent’s Office not later than 1:00 p.m. on the Business
Day specified in the applicable Committed Loan Notice. Upon satisfaction of the
applicable conditions set forth in Section 4.01, the Administrative
Agent shall make all funds so received available to the Borrower in like funds
as received by the Administrative Agent either by (i) crediting the account of
the Borrower on the books of Bank of America with the amount of such

 

30

 

funds or (ii)
wire transfer of such funds, in each case in accordance with instructions
provided to (and reasonably acceptable to) the Administrative Agent by the
Borrower.

 

(c)           Except as otherwise provided herein,
a Eurodollar Rate Loan may be continued or converted only on the last day of an
Interest Period for such Eurodollar Rate Loan. During the existence of a
Default, no Loans may be requested as, converted to or continued as Eurodollar
Rate Loans without the consent of the Required Lenders.

 

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

 

(e)           After giving effect to the Borrowing,
all conversions of Loans from one Type to the other, and all continuations of
Loans as the same Type, there shall not be more than six Interest Periods in effect.

 

(f)            Anything in this Section 2.02
to the contrary notwithstanding, the Borrower may not select (i) the Eurodollar
Rate for the Loans made on the Closing Date or (ii) Interest Periods for
Eurodollar Rate Loans that have a duration of more than one month during the
period from the date hereof to 30 days after the Closing Date (or such earlier
date as shall be specified by the Administrative Agent in a notice to the
Borrower and the Lenders).

 

2.03.       [Reserved].

 

2.04.       [Reserved].

 

2.05.       Prepayments.

 

(a)           Optional.

 

(i)            If and to the
extent (and only to the extent) permitted pursuant to the First Lien Credit
Agreement and the Intercreditor Agreement, the Borrower may, upon notice to the
Administrative Agent, at any time or from time to time voluntarily prepay Loans
in whole or in part; provided that (A) such notice must be received by
the Administrative Agent not later than 11:00 a.m. (1) three Business Days
prior to any date of prepayment of Eurodollar Rate Loans and (2) on the date of
prepayment of Base Rate Loans; (B) any prepayment of Eurodollar Rate Loans
shall be in a principal amount of $2,000,000 or a whole multiple of $1,000,000
in excess thereof; and (C) any prepayment of Base Rate Loans shall be in a
principal amount of $500,000 or a whole multiple of $100,000 in excess thereof
or, in each case, if less, the entire principal amount thereof then
outstanding. Each such notice shall specify the date and amount of such
prepayment and the Type(s) of Loans to be prepaid and, if Eurodollar Rate Loans
are to be prepaid, the Interest Period(s) of such Loans. The Administrative
Agent will promptly notify each Lender of its receipt of each such notice, and
of the amount of such Lender’s ratable

 

31

 

portion of
such prepayment (based on such Lender’s Applicable Percentage). If such notice
is given by the Borrower, the Borrower shall make such prepayment and the
payment amount specified in such notice shall be due and payable on the date
specified therein. Any prepayment of a Eurodollar Rate Loan shall be
accompanied by all accrued interest on the amount prepaid, together with any
additional amounts required pursuant to Section 3.05. Each prepayment of
the outstanding Loans pursuant to this Section 2.05(a) shall be applied
to the Loans, and each such prepayment shall be paid to the Lenders in
accordance with their respective Applicable Percentages.

 

(ii)           Each prepayment pursuant to
this Section 2.05(a) (which; for the avoidance of doubt, shall not include any prepayments as a result of
the opt-out provisions of Section 2.05(c) of the First Lien Credit
Agreement) shall be accompanied by a premium payable by the Borrowers equal to
(i) if such prepayment or payment is made during the first year following the
Closing Date (A) and with the net cash proceeds of an Initial Public Offering,
1% of the principal amount of the Loans so prepaid, or (B) and the foregoing
clause (A) does not apply, 2% of the principal amount of the Loans so prepaid,
(ii) if such prepayment or payment is made during the second year following the
Closing Date, 1% of the principal amount of the Loans so prepaid and (iii) if
such prepayment or payment is made after the second year following the Closing
Date, 0% of the principal amount of the Loans so prepaid.

 

(b)           Mandatory.

 

(i)            If and to the
extent (and only to the extent) permitted pursuant to the First Lien Credit
Agreement and the Intercreditor Agreement, no later than five Business Days
following the delivery by the Borrower of its annual audited financial reports
required pursuant to Section 6.01(a) and the related Compliance
Certificate has been delivered pursuant to Section 6.02(b), the Borrower
shall deliver to the Administrative Agent a calculation of the Excess Cash Flow
for the fiscal year last ended and, no later than ten Business Days following
the delivery of such calculation, the Borrower shall prepay an aggregate
principal amount of Loans equal to the excess (if any) of (A) 50% (or if the
Consolidated Leverage Ratio as set forth in such Compliance Certificates is
less than 4.5:1.0, 25% or if the Consolidated Leverage Ratio as set forth in
such Compliance Certificate is less than 3.5:1.0, 0%) of Excess Cash Flow for
the fiscal year covered by such financial statements over (B) the aggregate principal amount of Loans
prepaid pursuant to Section 2.05(a)(i) during such fiscal year
(such prepayments to be applied as set forth in clauses (v) and (vii) below).

 

(ii)           If and to the extent (and only
to the extent) permitted pursuant to the First Lien Credit Agreement and the Intercreditor Agreement, if Holdings or
any of its. Subsidiaries Disposes of any property (other than any
Disposition of any property permitted
by Section 7.05(a), through (i)) which results in the realization
by such Person of Net Cash Proceeds, the Borrower shall, (i) no later
than one Business Day following. the receipt of any Net Cash Proceeds by
Holdings or such Subsidiary, the Borrower shall deliver to the Administrative
Agent a calculation of the amount of such Net Cash Proceeds and (ii) on the
date that is 10 Business Days following the receipt of such Net

 

32

 

Cash Proceeds
prepay an aggregate principal amount of Loans equal to 100% of such Net Cash
Proceeds immediately upon receipt thereof by such Person (such prepayments to
be applied as set forth in clauses (v) and (vii) below); provided, however,
that, with respect to any Net Cash Proceeds realized under a Disposition
described in this Section 2.05(b)(ii), at the election of the Borrower
(as notified by the Borrower to the Administrative Agent within ten Business
Days of such Disposition), and so long as no Default or Event of Default pursuant
to Sections 8.01(a), (f) or (g) shall have occurred and
be continuing or any Event of Default (other than pursuant to Sections
8.01(a), (f) or (g))
shall have occurred and be continuing for 10 calendar days, Holdings or such
Subsidiary may reinvest all or any portion of such Net Cash Proceeds in
operating assets so long as within 15 months after the receipt of such Net Cash
Proceeds, such purchase shall have been consummated or if Holdings or such
Subsidiary enters into a definitive agreement to reinvest such Net Cash
Proceeds during such 15 month period, within 18 months after the receipt of
such Net Cash Proceeds (as certified by the Borrower in writing to the
Administrative Agent); and provided  further, however, that
any Net Cash Proceeds not subject to such definitive agreement or so reinvested
shall be immediately applied to the prepayment of the Loans as set forth in
this Section 2.05(b)(ii).

 

(iii)          If and to the extent (and only
to the extent) permitted pursuant to the First Lien Credit Agreement and the
Intercreditor Agreement, upon the incurrence or issuance by Holdings or any of
its Subsidiaries of any Indebtedness (other than Indebtedness expressly
permitted to be incurred or issued pursuant to Section 7.02), the
Borrower shall, concurrently with the receipt of any Net Cash Proceeds by
Holdings, the Borrower or any Subsidiary, deliver to the Administrative Agent a
calculation of the amount of such Net Cash Proceeds, and no later than ten Business Days following the
delivery of such calculation, prepay an aggregate principal amount of
Loans equal to 100% of all Net Cash Proceeds received therefrom by Holdings or
such Subsidiary (such prepayments to be applied as set forth in clauses (v) and
(vii) below).

 

(iv)          If and to the extent
(and only to the extent) permitted pursuant to the First Lien Credit Agreement
and the Intercreditor Agreement, upon any Extraordinary Receipt received by or
paid to or for the account of Holdings or any of its Subsidiaries, and not
otherwise included in clause (ii), (iii) or (iv) of this Section 2.05(b),
the Borrower shall, concurrently with the receipt of any Net Cash Proceeds by
Holdings, the Borrower or any Subsidiary, deliver to the Administrative Agent a
calculation of the amount of such Net Cash Proceeds, and no later than ten
Business Days following the delivery of such calculation, the Borrower shall
prepay an aggregate principal amount of Loans equal to 100% of all Net Cash
Proceeds received therefrom by Holdings or such Subsidiary (such prepayments to
be applied as set forth in clauses (vi) and (ix) below); provided, however,
that at the election of the Borrower (as notified by the Borrower to the
Administrative Agent within ten Business Days the date of receipt of such
Extraordinary Receipt, Holdings or such Subsidiary may reinvest all or any
portion of such Net Cash Proceeds in operating assets so long as within 15
months after the receipt of such Net Cash Proceeds such purchase shall have
been consummated or if Holdings or any such Subsidiary enters into a definitive
agreement to reinvest such Net Cash Proceeds within such 15 month period within
18 months of the receipt of such Net Cash Proceeds; and provided further,

 

33

 

however,
that any Net Cash Proceeds not so applied shall be immediately applied to the
prepayment of the Loans as set forth in this Section 2.05(b)(iv).

 

(v)           Each prepayment of Loans
pursuant to the foregoing provisions of this Section 2.05(b) shall be
applied ratably to the repayment of the Loans and the Borrowings in accordance
with the terms of this Agreement.

 

(c)           Opt-Out. So long as any Loans
remain outstanding, any Lender may elect to decline the entire portion of the
prepayment of its Loans pursuant to Section 2.05 (other than an optional
prepayment pursuant to clause (a) of Section 2.05 that has not
been designated by the Borrower as being subject to this Section 2.05(c))
by delivery of a completed Notice of Election to the Administrative Agent by
telecopy at least five Business Days prior to the applicable prepayment date,
in which case the aggregate amount of the prepayment that would have been
applied to prepay Loans but was so declined shall be re-offered to those
Lenders under this Agreement who have initially accepted such prepayment (such
re-offer to be made to each such Lender based on the percentage which such
Lender’s Loans represents of the aggregate Loans of all such Lenders who have initially
accepted such prepayment). In the event of such a re-offer, the relevant
Lenders may elect to decline in such Notice of Election all of the amount of
such prepayment that is re-offered to them, in which case the aggregate amount
of the prepayment that would have been applied to prepay such Loans pursuant to
such re-offer but was so declined shall be applied in the following order: first, to repay the Revolving Credit Facility (as defined in the First
Lien Credit Agreement) in the manner set forth in clause (vii) of Section
2.05(b) of the First Lien Credit Agreement and second
the remainder, if any, shall be returned to the Borrower. In the absence of
delivery of a completed Notice of Election with respect to any prepayment at
least five Business Days prior to the applicable prepayment date, such Lender
shall automatically be deemed to have accepted such prepayment and any re-offer
in respect thereof.

 

2.06.       Termination of Commitments. The
Aggregate Commitments shall be automatically and permanently reduced to zero on
the date of the Borrowing.

 

2.07.       Repayment of Loans. The Borrower
shall repay to the Lenders the aggregate principal amount of all Loans
outstanding on the Maturity Date.

 

2.08.       Interest.

 

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

 

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

 

34

 

(ii)           While any Event of
Default pursuant to Sections 8.01(a), (f) or (g) exists, the Borrower shall pay interest on the principal amount of
all outstanding Obligations hereunder at a fluctuating interest rate per annum
at all times equal to the Default Rate to the fullest extent permitted by
applicable Laws.

 

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

 

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

 

2.09.       Fees. The Borrower shall pay to the Arrangers and the Administrative
Agent for their own respective accounts fees in the amounts and at the times
specified in the Fee Letter. Such fees shall be fully earned when paid and
shall not be refundable for any reason whatsoever.

 

2.10.       Computation of Interest and Fees.
All computations of interest for Base Rate Loans when the Base Rate is
determined by Bank of America’s “prime rate” shall be made on the basis of a
year of 365 or 366
days, as the case may be, and actual days elapsed. All other computations of
fees and interest shall be made on the basis of a 360-day year and actual days
elapsed (which results in more fees or interest, as applicable, being paid than
if computed on the basis of a 365-day year). Interest shall accrue on each Loan
for the day on which the Loan is made,
and shall not accrue on a Loan, or any portion. thereof, for the day on which
the Loan or such portion is paid, provided that any Loan that is
repaid on the same day on which it is made shall, subject to Section 2.1 2(a),
bear interest for one day. Each determination by the Administrative Agent of an
interest rate or fee hereunder shall be conclusive and binding for all
purposes, absent manifest error.

 

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

 

35

 

2.12.       Payments Generally: Administrative
Agent’s Clawback.

 

(a)           General. All payments to be
made by the Borrower shall be made without condition or deduction for any
counterclaim, defense, recoupment or setoff. Except as otherwise expressly
provided herein, all payments by the Borrower hereunder shall be made to the
Administrative Agent, for the account of the respective Lenders to which such
payment is owed, at the Administrative Agent’s Office in Dollars and in
immediately available funds not later than 2:00 p.m. on the date specified
herein. The Administrative Agent will promptly distribute to each Lender its
Applicable Percentage in respect of the relevant Facility (or other applicable
share as provided herein) of such payment in like funds as received by wire
transfer to such Lender’s Lending Office. All payments received by the
Administrative Agent after 2:00 p.m. shall be deemed received on the next
succeeding Business Day and any applicable interest or fee shall continue to
accrue. If any payment to be made by the Borrower shall come due on a day,
other than a Business Day, payment shall be made on the next following Business
Day, and such extension of time shall be reflected on computing interest or
fees, as the case may be.

 

(b)           (i) Funding by Lenders: Presumption by
Administrative Agent. Unless the Administrative Agent shall have received
notice from a Lender prior to the proposed date of any Borrowing of Eurodollar
Rate Loans (or, in the case of any Borrowing of Base Rate Loans, prior to 12:00
noon on the date of such Borrowing) that such Lender will not make available to
the Administrative Agent such Lender’s share of such Borrowing, the
Administrative Agent may assume that such Lender has made such share available
on such date in accordance with Section 2.02 (or, in the case of a
Borrowing of Base Rate Loans, that such Lender has made such share available in
accordance with and at the time required by Section 2.02) and may, in
reliance upon such assumption, make available to the Borrower a corresponding
amount. In such event, if a Lender has not in fact made its share of the
applicable Borrowing available to the Administrative Agent, then the applicable
Lender and the Borrower agrees to pay to the Administrative Agent forthwith on
demand such corresponding amount in immediately available funds with interest
thereon, for each day from and including the date such amount is made available
to the Borrower to but excluding the date of payment to the Administrative
Agent, at (A) in the case of a payment to be made by such Lender, the greater
of the Federal Funds Rate and a rate determined by the Administrative Agent in
accordance with banking industry rules on interbank compensation, plus any
administrative, processing or similar fees customarily charged by the
Administrative Agent in connection with the foregoing, and (B) in the case of a
payment to be made by the Borrower, the interest rate applicable to Base Rate Loans. If the Borrower and such Lender shall
pay such interest to the Administrative Agent for the same or an overlapping
period, the Administrative Agent shall promptly remit to the Borrower the
amount of such interest paid by the Borrower for such period. If such Lender
pays its share of the applicable Borrowing to the Administrative Agent, then
the amount so paid shall constitute such Lender’s Loan included in such
Borrowing. Any payment by the Borrower shall be without prejudice to any claim
the Borrower may have against a Lender that shall have failed to make such
payment to the Administrative Agent.

 

(ii)           Payments by Borrower: Presumptions by
Administrative Agent. Unless the Administrative Agent shall have received
notice from the Borrower prior to the time at which any payment is due to the
Administrative Agent for the account of the Lenders hereunder that the Borrower
will not make such payment, the Administrative Agent may assume that the
Borrower

 

36

 

has made such
payment on such date in accordance herewith and may, in reliance upon such assumption,
distribute to the Appropriate Lenders the amount due. In such event, if the
Borrower has not in fact made such payment, then each of the Appropriate
Lenders severally agrees to repay to the Administrative Agent forthwith on
demand the amount so distributed to such Lender, in immediately available funds
with interest thereon, for each day from and including the date such amount is
distributed to it to but excluding the date of payment to the Administrative
Agent, at the greater of the Federal Funds Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank
compensation.

 

A notice of
the Administrative Agent to any Lender or the Borrower with respect to any
amount owing under this subsection (b) shall be conclusive, absent manifest
error.

 

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

 

(d)           Obligations of Lenders Several.
The obligations of the Lenders hereunder to make Loans and to make payments
pursuant to Section 11.04(c) are several and not joint. The failure of
any Lender to make any Loan, to fund any such participation or to make any
payment under Section 11.04(c) on any date required hereunder shall not
relieve any other Lender of its corresponding obligation to do so on such date,, and no Lender shall be
responsible for the failure of any other Lender to so make its Loan, to
purchase its participation or to make its payment under Section 11.04(c).

 

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

 

(f)            Insufficient Funds. If at any time
insufficient funds are received by and available to the Administrative Agent to
pay fully all amounts of principal, interest and fees then due hereunder, such
funds shall be applied (i) first,  toward payment of interest and fees then due hereunder, ratably
among the parties entitled thereto in accordance with the amounts of interest
and fees then due to such parties, and (ii) second, toward payment of
principal then due hereunder, ratably among the parties entitled thereto in
accordance with the amounts of principal then
due to such parties.

 

2.13.       Sharing of Payments by Lenders. If
any Lender shall, by exercising any right of setoff or counterclaim or
otherwise, obtain payment in respect of (a) Obligations due and payable to such
Lender hereunder and under the other Loan Documents at such time in excess of
its ratable share (according to the proportion of (i) the amount of such
Obligations due and payable to such Lender at such time to (ii) the aggregate
amount of the Obligations due and payable to all Lenders hereunder and under
the other Loan Documents at such time) of payments on account of the
Obligations due and payable to all Lenders hereunder and under the other Loan

 

37

 

Documents at
such time obtained by all the Lenders at such time or (b) Obligations owing
(but not due and payable) to such Lender hereunder and under the other Loan
Documents at such time in excess of its ratable share (according to the
proportion of (i) the amount of such Obligations owing (but not due and
payable) to such Lender at such time to (ii) the aggregate amount of the Obligations’ owing (but not due and payable)
to all Lenders hereunder and under the other Loan Parties at such time)
of payment on account of the Obligations owing (but not due and payable) to all
Lenders hereunder and under the other Loan Documents at such time obtained by
all of the Lenders at such time then the Lender receiving such greater
proportion shall (a) notify the Administrative Agent of such fact, and (b)
purchase (for cash at face value) participations in the Loans of the other
Lenders, or make such other adjustments as shall be equitable, so that the
benefit of all such payments shall be shared by the Lenders ratably in
accordance with the aggregate amount of Obligations then due and payable to the
Lenders or owing (but not due and, payable)
to the Lenders, as the case may be, provided ,that:

 

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

 

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

 

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

 

2.14.       Increase in Facility.

 

(a)           Borrower Request. The Borrower may by
written notice to the Administrative Agent elect to request the establishment
of one or more new Commitments (each, an “Incremental Commitment”) by an
amount not in excess of $60,000,000 in the aggregate and, not less than
$15,000,000 individually. Each such notice shall specify (i) the date (each, an
“Increase Effective Date”) on which the Borrower proposes that the
increased or new Commitments shall be effective, which shall be a date not less
than 10 Business Days after the date on which such notice is delivered to the
Administrative Agent and (ii) the identity of each Eligible Assignee to whom
the Borrower proposes any portion of such increased or new Commitments be
allocated and the amounts of such allocations; provided that any
existing Lender approached to provide all or a portion of the increased or new
Commitments may elect or decline, in its sole discretion, to provide such
increased or new Commitment.

 

38

 

(b)           Conditions. The
increased or new Commitments shall become effective, as of such Increase Effective Date; provided
that:

 

(i)            each of the
conditions set forth in Section 4.01(j), (k) and (l) shall be satisfied;

 

(ii)           no Default shall have occurred
and be continuing or would result from the borrowings to be made on the
Increase Effective Date;

 

(iii)          the Borrower shall
deliver or cause to be delivered any legal opinions or other documents
reasonably requested by the Administrative Agent in connection with any such transaction
consisting of Incremental Commitments of at least $25,000,000 in the aggregate.

 

(c)           Terms of New
Loans and Commitments. The terms and provisions of Loans made pursuant to
the new Commitments shall be as follows:

 

(i)            terms and provisions of Loans
made pursuant to Incremental Commitments (“Incremental Loans”) shall be,
except as otherwise set forth herein or in the Increase Joinder, identical to
the Loans (it being understood that Incremental Loans may be a part of the
Loans); provided that the rate of interest and the amortization schedule applicable to the Incremental Loans
shall be determined by the Borrower and the applicable new Lenders and shall be
set forth in the applicable Increase Joinder;

 

(ii)           the weighted average life to
maturity of any Incremental Loans shall be no shorter than the weighted average
life to maturity of the existing Loans; and

 

(iii)          the maturity date
of Incremental Loans (the “Incremental Maturity Date”) shall not be
earlier than the Maturity Date;

 

The increased
or new Commitments shall be effected by a joinder agreement (the “Increase
Joinder”) executed by the Borrower, the Administrative Agent and each
Lender making such
increased or new Commitment, in form and substance satisfactory to each of
them. The Increase Joinder may, without the consent of any other
Lenders, effect such amendments to this Agreement and the other Loan Documents
as may be necessary or appropriate, in the opinion of the Administrative Agent,
to effect the provisions of this Section 2.14. In addition, unless
otherwise specifically provided herein, all references in Loan Documents to
Loans shall be deemed, unless the context otherwise requires, to include
references to Incremental Loans, made pursuant to this Agreement.

 

(d)           Making of New
Loans. On any Increase Effective Date on which new Commitments for Loans
are effective, subject to the satisfaction of the foregoing terms and
conditions, each Lender of such new Commitment shall make a Loan to the
Borrower in an amount equal to its new Commitment.

 

(e)           Equal and Ratable Benefit.
The Loans and ‘Commitments established pursuant to this Section shall
constitute Loans and Commitments under, and shall be entitled to

 

39

 

all the
benefits afforded by, this Agreement and the other Loan Documents, and shall,
without limiting the foregoing, benefit equally and ratably from the Guaranties
and security interests created by the Security Documents. The Loan Parties
shall take any actions reasonably required by the Administrative Agent to
ensure and/or demonstrate that the Lien and security interests granted by the
Security Documents continue to be perfected under the UCC or otherwise after
giving effect to the establishment of any such Class of Term Loans or any such
new Commitments.

 

ARTICLE III

TAXES, YIELD PROTECTION AND ILLEGALITY

 

3.01.       Taxes.

 

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

 

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

 

(c)           Indemnification by the Borrower
and Holdings. The Borrower and Holdings shall, jointly and severally,
indemnify the Administrative Agent and each Lender within 30 days after demand
therefor, for the full amount of any Indemnified Taxes or Other Taxes
(including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section) paid by the Administrative
Agent or such Lender, as the case may be, and any penalties, interest and reasonable
expenses arising therefrom or with respect thereto, whether or not such
Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted
by the relevant Governmental Authority. A certificate as to the amount of such
payment or liability delivered to the Borrower by a Lender (with a copy to the
Administrative Agent), or by the Administrative Agent on its own behalf or on
behalf of a Lender, shall be conclusive absent manifest error.

 

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

 

40

 

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

 

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

 

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

 

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

 

(iii)          in the case of a Foreign Lender
claiming the benefits of the exemption for portfolio interest under Section
881(c) of the Code, (A) a certificate to the effect that such Foreign Lender is
not (1) a “bank” within the meaning of Section 881(c)(3)(A) of the Code, (2) a “10
percent shareholder” of the Borrower or Holdings within the meaning of Section
881(c)(3)(B) of the Code, or (3) a “controlled foreign corporation” described
in Section 881(c)(3)(C) of the Code and (B) duly completed copies of Internal
Revenue Service Form W-8BEN, or

 

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

 

(f)            Treatment of Certain Refunds.
If the Administrative Agent or any Lender determines, in its sole discretion,
that it has received a refund of any Taxes or Other Taxes as to which it has
been indemnified by the Borrower or Holdings, as the case may be, or with
respect to which the Borrower or Holdings, as the case may be, has paid
additional amounts pursuant to this Section, it shall pay to the Borrower or
Holdings, as the case may be, an amount equal to such refund (but only to the
extent of indemnity payments made and additional amounts paid, by

 

41

 

the Borrower
or Holdings under this Section with respect to the Taxes or Other Taxes giving
rise to such refund), net of all out-of-pocket expenses of the Administrative
Agent or such Lender, as the case may be, and without interest (other than any
interest paid, by the relevant Governmental Authority with respect to such
refund), provided that the Borrower or Holdings, as the case may be,
upon the request of the Administrative Agent or such Lender, agree to repay the
amount paid over to the Borrower (plus any penalties, interest or other
charges imposed by the relevant Governmental Authority) to the Administrative
Agent or such Lender if the Administrative Agent or such Lender is required to
repay such refund to such Governmental Authority. This subsection shall not be
construed to require the Administrative Agent or any Lender to make available its tax returns (or any other
information relating to its taxes that it deems confidential), to the
Borrower, Holdings or any other Person.

 

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

 

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

 

42

 

3.04.       Increased Costs:
Reserves on Eurodollar Rate Loans.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(d)           Delay in Requests. Failure or delay on the
part of any Lender to demand compensation pursuant to the foregoing provisions
of this Section shall not constitute a waiver of such Lender’s right to demand
such compensation, provided that the Borrower shall not be required to
compensate a Lender pursuant to the foregoing provisions of this Section for
any increased costs incurred or reductions suffered more than nine months prior
to the date that such Lender notifies the Borrower of the Change in Law giving
rise to such increased costs or

 

43

 

reductions and
of such Lender’s intention to claim compensation therefor (except that, if the
Change in Law giving rise to such increased costs or reductions is retroactive,
then the nine-month period referred to above shall be extended to include the
period of retroactive effect thereof).

 

(e)           Reserves on Eurodollar Rate Loans.
The Borrower shall pay to each Lender, as long as such Lender shall be required
to maintain reserves with respect to liabilities or assets consisting of or
including Eurocurrency funds or deposits (currently known as “Eurocurrency
liabilities”), additional interest on the unpaid principal amount of each
Eurodollar Rate Loan equal to the actual costs of such reserves allocated to
such Loan by such Lender (as determined by such Lender in good faith, which
determination shall be conclusive), which shall be due and payable on each date
on which interest is payable on such Loan, provided the Borrower shall
have received at least 10 days’ prior notice (with a copy to the Administrative
Agent) of such additional interest from such Lender. If a Lender fails to give
notice 10 days prior to the relevant Interest Payment Date, such additional
interest shall be due and payable 10 days from receipt of such notice.

 

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

 

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

 

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

 

(c)           any assignment of a Eurodollar Rate
Loan on a day other than the last day of the Interest Period therefor as a
result of a request by the Borrower pursuant to Section 11.13;

 

including any
loss or expense arising from the liquidation or reemployment of funds obtained
by it to maintain such Loan or from fees payable to terminate the deposits from
which such funds were
obtained (but excluding any loss of anticipated profit). The Borrower shall
also pay any customary administrative fees charged by such Lender in connection
with the foregoing.

 

3.06.       Mitigation Obligations: Replacement of
Lenders.

 

(a)           Designation of a Different Lending
Office. If any Lender requests compensation under Section 3.04, or
the Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section
3.01, or if any Lender gives a notice pursuant to Section 3.02, then
such Lender shall use reasonable efforts to designate a different Lending
Office for funding or booking its Loans hereunder or to assign its rights and
obligations hereunder to another of its offices, branches or affiliates, if, in
the judgment of such Lender, such designation or assignment (i) would eliminate

 

44

 

or reduce
amounts payable pursuant to Section 3.01 or 3.04 as the case may be, in the future, or
eliminate the need for the notice pursuant to Section 3.02, as
applicable, and (ii) in each case, would not subject such Lender to any
unreimbursed cost or expense and would not otherwise be disadvantageous to such
Lender. The Borrower hereby agrees to pay all reasonable costs and expenses
incurred by any Lender in connection with any such designation or assignment.

 

(b)           Replacement of Lenders. If any
Lender requests compensation under Section 3.04, or if the Borrower is
required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 3.01, the
Borrower may replace such Lender in accordance with Section 11.13.

 

3.07.       Survival. All of the Borrower’s
obligations under this Article III shall survive termination of the
Aggregate Commitments and repayment of all other Obligations hereunder.

 

ARTICLE IV
 CONDITIONS
PRECEDENT TO THE LOANS

 

4.01.       Conditions of the Loans. The
obligation of each Lender to make its Loan hereunder is subject to satisfaction
of the following conditions precedent:

 

(a)           The Administrative Agent’s receipt of
the following, each of which shall be originals or telecopies (followed
promptly by originals) unless otherwise specified, each properly executed by a
Responsible Officer of the signing Loan Party, each dated the Closing Date (or,
in the case of certificates of governmental officials, a recent date before the
Closing Date) and each in form and substance satisfactory to the Administrative
Agent and each of the Lenders:

 

(i)            executed
counterparts of this Agreement and the Guaranty of Holdings’ Subsidiaries,
sufficient in number for distribution to the Administrative Agent, each Lender
and the Borrower;

 

(ii)           a Note executed by the
Borrower in favor of each Lender requesting a Note;

 

(iii)          a pledge and security
agreement, in substantially the form of Exhibit G (together with each
other pledge and security agreement and pledge and security agreement
supplement delivered pursuant to Section 6.12, in each case as amended,
the “Security Agreement”), duly executed by each Loan Party, together
with (to the extent required by
the Security Agreement):

 

(A)          certificates representing the
Pledged Securities referred to therein accompanied by undated stock powers executed
in blank and instruments evidencing the Intercompany Notes indorsed in blank,

 

45

 

(B)          proper financing
statements in form appropriate for filing under the Uniform Commercial Code of
the State of Delaware, covering the Collateral described in the Security
Agreement,

 

(C)          completed Perfection
Certificate and requests for information, dated on or before the Closing Date,
listing all effective financing statements filed in the jurisdictions referred
to in clause (B) above that name any Loan Party as debtor, together with copies
of such other financing statements, and

 

(D)          evidence that all other action
that the Administrative Agent may reasonably deem necessary in order to perfect
the Liens created under the Security Agreement has been taken (including
receipt of duly executed payoff letters, UCC-3 termination statements and
landlords’ and bailees waiver and consent agreements);

 

(iv)          an intellectual
property security agreement, in substantially the form of Exhibit 6, 7 and 8
to the Security Agreement, as applicable (together with each other intellectual
property security agreement and intellectual property security agreement
supplement delivered pursuant to Section 6.12, in each case as amended,
the “Intellectual Property Security Agreement”), duly executed by each
Loan Party, together with evidence that all action that the Administrative
Agent may reasonably deem necessary in order to perfect the Liens created under
the Intellectual Property Security Agreement has been taken;

 

(v)           such certificates of resolutions or other
action, incumbency certificates and/or other certificates of Responsible
Officers and/or the Secretary of each Loan Party as the Administrative Agent
may reasonably require evidencing the identity, authority and capacity of each
Responsible Officer thereof authorized to act as a Responsible Officer in
connection with this Agreement and the other Loan Documents to which such Loan
Party is a party or is to be a party;

 

(vi)          such documents and certifications
as the Administrative Agent may reasonably require to evidence that each Loan
Party is duly organized or formed, and that each of Holdings and its
Subsidiaries is validly existing, in good standing and qualified to engage in
business in each jurisdiction where its ownership, lease or operation of
properties or the conduct of its business requires such qualification;

 

(vii)         a favorable opinion
of Shearman & Sterling LLP, counsel to the Loan Parties, and a favorable
opinion of Kramer Levin Naftalis & Frankel LLP, counsel to the Loan
Parties, in each case, addressed to the Administrative Agent and each Lender,
collectively, as to the matters set forth in Exhibit H and such other
matters concerning the Loan Parties and the Loan Documents as the Administrative
Agent may reasonably request;

 

(viii)        a certificate signed by a
Responsible Officer of the Borrower certifying (A) that the conditions
specified in Sections 4.01(i) and (k)  have been satisfied, and (B) that
there has been no event or circumstance since the date of the ISS Audited
Financial

 

46

 

Statements
that has had or would be reasonably expected to have, either individually or in
the aggregate, an ISS Material Adverse Effect;

 

(ix)          certificates
attesting to the Solvency of Holdings and its Subsidiaries as a whole before and after giving effect to the
Transaction, from its chief financial officer;

 

(x)           evidence that all insurance
required to be maintained pursuant to the Loan Documents has been obtained and
is in effect, together with the certificates of insurance, naming the
Administrative Agent, on behalf of the Lenders, as an additional insured or
loss payee, as the case may be, under all insurance policies maintained with
respect to the assets and properties of the Loan Parties that constitute
Collateral;

 

(xi)          promptly following the .Closing Date, certified copies of a certificate
of merger or other confirmation satisfactory to the Administrative Agent
of the consummation of the Merger from the Secretary of State of the State of
Delaware;

 

(xii)         evidence that the
Indebtedness to be repaid as shown on the pro forma balance sheet of Holdings
delivered pursuant to Section 4.01(h) has been, or concurrently with the
Closing Date is being, terminated and all Liens securing obligations under such
Indebtedness have been, or concurrently with the Closing Date are being,
released.

 

Notwithstanding
anything to the contrary herein, with respect to any Collateral, the security
interest in which may not be perfected by the filing of a UCC financing
statement, if the perfection of the security interest in such Collateral may
not be accomplished on or prior to the Closing Date without undue burden or
expense, then the delivery of documents and instruments for perfection of such
security interest shall not constitute a condition precedent to the initial
Borrowing on the Closing Date. To the extent that any such security interest is
not so perfected on or prior to the Closing Date, then Holdings and the
Borrower agree to deliver or cause to be delivered such documents and
instruments, and take or cause to be taken such other. actions as may be
required to perfect such security interests, on or prior to the date that is 30
days after the Closing Date, or such longer period as may be acceptable to the
Arrangers in their sole discretion.

 

(b)           (i) All fees required to be paid to the
Administrative Agent and the Arrangers on or before the Closing Date shall have
been paid and (ii) all fees required to be paid to the Lenders on or before the
Closing Date shall have been paid.

 

(c)           Unless waived by the Administrative
Agent, the Borrower shall have paid all fees, charges and disbursements of
counsel to the Administrative Agent (directly to such counsel if requested by
the Administrative Agent) to the extent invoiced at least three calendar days
prior to the Closing Date (it being understood that the failure to invoice such
fees shall not relieve the Borrower of its obligations under Section 11.04),
plus such additional amounts of such fees, charges and disbursements as shall
constitute its reasonable estimate of such fees, charges and disbursements
incurred or to be incurred by it through the closing proceedings (provided
that such estimate shall not thereafter preclude a final settling of accounts
between the Borrower and the Administrative Agent).

 

47

 

(d)           The Merger Agreement shall be in full force and
effect.

 

(e)           The Merger shall have been consummated,
contemporaneously with the Loans, strictly in accordance with the terms
of the Merger Agreement, which shall not have been amended or modified or any
condition therein waived or otherwise unsatisfied in a manner that is, in the
reasonable judgment of the Arrangers, material and adverse to the Lenders
(including, without limitation any amendment, modification or waiver of any
condition precedent requiring the
absence of a material adverse effect and ‘without giving effect to any
exclusion from the definition of a material adverse effect resulting
from actions consented to or directed by the Borrower or any of its affiliates)
without the prior written consent of the Administrative Agent and in compliance
with all applicable requirements of Law.

 

(f)            The Administrative Agent shall have received
reasonably satisfactory evidence of availability to the Borrower of not less
than $325,000,000 aggregate principal amount of First Lien Loans.

 

(g)           The Rollover Equity Contribution
shall have been consummated on terms reasonably acceptable to the
Administrative Agent.

 

(h)           The Administrative Agent and Lenders
shall have received: audited consolidated financial statements of Seller and
its Subsidiaries for the three most recent fiscal years ended 90 days or more
prior to the Closing Date, unaudited consolidated financial statements of
RiskMetrics, Seller and their respective subsidiaries for any interim quarterly
periods that have
ended more than 45 days before the Closing Date, and a pro forma balance sheet
prepared by management of Holdings and its Subsidiaries giving effect to the
Transaction as of November 30, 2006,
which shall be reasonably satisfactory in form and substance to the Administrative
Agent and the Lenders (it being recognized by the Administrative Agent and the
Lenders that such balance sheet does not give effect to changes arising from
any purchase accounting valuation adjustments in accordance with the
Transaction and otherwise represents the Borrower’s good faith estimate of the
pro forma items contained therein and that such estimate is inherently
uncertain and subject to change).

 

(i)            The representations and warranties
in the Merger Agreement relating to Seller, its Subsidiaries and their
respective businesses that are material to the interests of the Lenders shall
be true and correct on and as of the Closing Date (except where such
representations and warranties shall have been true and correct as of such
earlier date) unless, as a result of any failure to be so true and correct,
RiskMetrics does not have the right to terminate, its obligations under the
Merger Agreement.

 

(j)            The
representations and warranties of the Borrower and each other Loan Party
contained in Article V or any other Loan Document, or which are
contained in any document when furnished under or in connection herewith or
therewith, shall be true and correct in all material respects on and as of the
date of the Borrowing, except to the extent that such representations and
warranties specifically refer to an earlier date, in which case they shall be
true and correct in all material respects as of such earlier date; provided
that in the case of any Loan to be made on the Closing Date, only the Specified
Representations shall apply for purposes of this Section 4.01(j). For
purposes of this Section 4.01(j), the “Specified

 

48

 

Representations”
shall mean the representations and warranties set forth in Sections 5.01(b)
(excluding clause (b)(i) thereof),
 5.02(a), 5.04, 5.14 and 5.18.

 

(k)           Except in the case of any Loan made on the Closing
Date, no Default or Event of Default shall exist, or would result from such
proposed Loan or from the application of the proceeds thereof.

 

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

 

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

 

ARTICLE
V

REPRESENTATIONS AND WARRANTIES

 

Each Loan
Party (other than Seller and its Subsidiaries) represents and warrants to the
Administrative Agent and the Lenders on the Closing Date, and each Loan Party
represents and warrants to the Administrative Agent and the Lenders on the date
of each Increase Effective Date:

 

5.01.       Existence, Qualification and Power.
Each Loan Party and each of its Subsidiaries (a) is duly organized or formed, validly
existing and, as applicable, in good standing under the Laws of the
jurisdiction of its incorporation or organization, (b) has all requisite power
and authority and all requisite governmental authorizations to (i) own,
operate, lease and otherwise hold its assets and carry on its business as it is
now being conducted and (ii) execute, deliver and perform its obligations under
the Loan Documents to which it is a party and consummate the Transaction, and
(c) is duly qualified and is licensed and, as applicable, in good standing
under the Laws of each jurisdiction where the character of the properties
owned, leased or operated by it or the nature of its assets, business or
activities makes such qualification or licensing necessary; except in each case
referred to in clause (b)(i) or (c), to the extent that failure to do so would
not reasonably be expected to have a Material Adverse Effect.

 

5.02.       Authorization; No Contravention. (a) The execution,
delivery and performance by each Loan Party of each Loan Document to
which such Person is or is to be a party have been duly authorized by all
necessary corporate or other organizational action, and (b) do not and will, not result in any
violation or default (with or without notice or lapse of time or both)
under or give rise to a right of acceleration, termination or cancellation of
any obligation or result in the creation of any Lien upon any of the properties
or assets of Holdings or its Subsidiaries under, any provision of (i) any of
such Person’s Organization Documents; (ii) any Contractual Obligation to which
such Person is a party or affecting such Person or the properties of such
Person or any of its Subsidiaries; (iii) any order, injunction, writ or decree
of any Governmental Authority or any arbitral award to which such Person or its
property is subject; or

 

49

 

(iv) any Law
other than, in the case of clause (ii), (iii) or (iv), such items that would
not have a Material Adverse Effect.

 

5.03.       Governmental
Authorization: Other Consents. Except as set forth on Schedule
5.03, no approval, consent,
exemption, authorization, or other action by, or notice to, or filing with, any
Governmental Authority is required in connection with (a) the execution,
delivery or performance by any Loan Party of this Agreement or any other Loan
Document or for the consummation of the Transaction, (b) the grant by any Loan
Party of the Liens granted by it pursuant to the Collateral Documents, (c) the
perfection or maintenance of the Liens created under the Collateral Documents
(including the second priority nature thereof), other than the filing of
appropriate UCC financing statements and appropriate filings with the United
States Patent and Trademark Office and the United States Copyright Office, or
(d) the exercise by the Administrative Agent or any Lender of its rights under
the Loan Documents or remedies in respect of the Collateral pursuant to the
Collateral Documents except (i) approvals, consents, exemptions, authorizations, actions, notices or filings required by
securities or applicable law in connection with an exercise of remedies,
(ii) approvals, consents, exemptions, authorizations, actions, notices to, or
filings with any Governmental Authority, the absence of which or the failure to
make would not reasonably be expected to have a Material Adverse Effect or
(iii) those that have been obtained and are in full force and effect.

 

5.04.       Binding Effect. This Agreement has been, and each other
Loan Document, when delivered hereunder, will have been, duly executed
and delivered by each Loan Party that is party thereto. This Agreement
constitutes, and each other Loan Document when so delivered will constitute, a
legal, valid and binding obligation of such Loan Party, enforceable against
each Loan Party that is party thereto in accordance with its terms, except as
may be limited by bankruptcy, insolvency, reorganization, moratorium or similar
laws relating to or limiting creditors’ rights generally or by equitable
principles relating to enforceability.

 

5.05.       Financial Statements: No Material Adverse Effect.

 

(a)           The RMG Audited Financial Statements
(i) were prepared in accordance with GAAP consistently applied throughout the
period covered thereby, except as otherwise expressly noted therein; (ii)
fairly present in all material respects the financial condition of RiskMetrics and its Subsidiaries as of the
date thereof and their results of operations for the period covered thereby in
accordance with GAAP consistently applied throughout the period, covered
thereby, except as otherwise expressly noted therein; and (iii) show all
material indebtedness and other liabilities, direct or contingent, to the
extent required to be reflected on the face of a balance sheet in accordance
with GAAP, of RiskMetrics and its Subsidiaries as of the date thereof,
including liabilities for taxes, material commitments and Indebtedness.

 

(b)           The ISS Audited Financial Statements (i) are
accurate and complete in all material respects, have been prepared in accordance
with GAAP consistently applied, (ii) are consistent with the books and records
of Seller and (iii) fairly present, in all material respects, the consolidated
financial condition, results of operations and cash flows of Seller and its
Subsidiaries as of the dates and for the periods indicated therein.

 

50

 

(c)           The unaudited consolidated balance
sheet of Seller and its Subsidiaries dated September 30, 2006, and the related
unaudited consolidated statements of operation and cash flows for the
nine-month period ended on that date (i) are accurate and complete in all
material respects, have been prepared in accordance with GAAP consistently
applied, except as otherwise expressly noted in Schedule 5.6 of the Merger
Agreement, (ii) are consistent with the books and records of Seller and its
Subsidiaries and (iii) fairly present, in all material respects, the
consolidated financial condition, results of operations and cash flows of
Seller and its Subsidiaries as of the date thereof and for the periods
indicated therein, subject, in the case of clauses (i) and (ii), to the absence
of footnotes and to normal year-end audit adjustments and other presentation
items.

 

(d)           Since December 31, 2006, there has
been no event or circumstance, either individually or in the aggregate, that
has had or would reasonably be expected to have a Material Adverse Effect.

 

(e)           The consolidated pro forma balance
sheet prepared by management of Holdings and its Subsidiaries as of the November
30, 2006 delivered pursuant to Section 4.01(h) fairly presented in all
material respects on the Closing Date the consolidated pro forma financial
condition of Holdings and its Subsidiaries at such date, giving effect to the
Transaction (it being recognized by the Administrative Agent and the Lenders
that such balance sheet does not give effect to changes arising from any
purchase accounting valuation adjustments in accordance with the Transaction
and otherwise represents the Borrower’s good faith estimate of the pro forma
items contained therein and that such estimate is inherently uncertain and
subject to change).

 

(f)            The consolidated forecasted balance
sheet, statements of income and cash flows of Holdings and its Subsidiaries
delivered pursuant to Section 6.01(c) after the Closing Date were
prepared in good faith on the basis of the assumptions stated therein, which
assumptions were reasonable in light of the conditions existing at the time of
delivery of such forecasts, and represented, at the time of delivery, the
Borrower’s good faith estimate of its future financial condition and
performance (it being recognized by Administrative Agent and the Lenders that
such consolidated forecasted balance sheet, statements of income and cash flows
are not to be viewed as facts and that actual results during the period or
periods covered thereby may vary and that such variances may be material).

 

5.06.       Litigation. There are no actions,
suits, proceedings, claims or disputes pending or, to the knowledge of the Borrower,
threatened at law, in equity, in arbitration or before any Governmental
Authority, by or against the Borrower or any of its Subsidiaries or against any
of their properties or revenues that (a) purport to affect or pertain to this
Agreement, any other Loan Document, or the consummation of the Transaction, or
(b) either individually or in the aggregate, if determined adversely, would
reasonably be expected to have a Material Adverse Effect.

 

5.07.       No Default. Neither any Loan Party
nor any Subsidiary thereof is in default under or with respect to, or a party
to, any Contractual Obligation that would, either individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect. No Default
has occurred and is continuing or would result from the consummation of the
transactions contemplated by this Agreement or any other Loan Document.

 

51

 

5.08.       Ownership of Property.

 

(a)           Each Loan Party and each of its
Subsidiaries has good record and marketable title in fee simple to, or
leasehold interests in, all real property necessary or used in the ordinary
conduct of its business, except for such defects in title as would not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

 

(b)           As of the Closing Date, no Loan Party owns
any real property.

 

5.09.       Environmental Compliance. Except
as would not reasonably be expected to have a Material Adverse Effect and to
the knowledge of the Loan Parties, the Loan Parties and their respective
Subsidiaries are in compliance in all material respects with all applicable
Environmental Laws. No Loan Party has caused, arranged or allowed, or
contracted with any party for, the transportation, treatment, storage or
disposal of any Hazardous Materials. Except as would not reasonably be expected
to have a Material Adverse Effect and to the Borrower’s knowledge, no Hazardous
Materials have been released into the environment on or from the premises of
the Loan Parties or their respective Subsidiaries which is required under
applicable Environmental Law to be abated or remediated by any Loan Party.
Except as would not reasonably be expected to have a Material Adverse Effect
and to the Borrower’s knowledge, there are no past or present conditions,
events, circumstances or facts that can reasonably be expected to form the
basis of any claim or legal proceedings against or involving any Loan Party
based on or related to any violation of any Environmental Law. For the
avoidance of doubt, this Section 5.09 represents the sole and exclusive
representations and warranties of the Loan Parties regarding compliance with Environmental Laws.

 

5.10.       Insurance. The properties of
Holdings and its Subsidiaries are insured with financially sound and reputable
insurance companies not Affiliates of the 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
Holdings or the applicable
Subsidiary operates.

 

5.11.       Taxes. Holdings and its
Subsidiaries have filed all material Federal, state and other tax returns and
reports required to be filed, and have paid all material Federal, state and
other taxes, assessments, fees and other governmental charges levied or imposed
upon them or their properties (whether or not any such items are shown on a tax
return), income or assets otherwise due and payable, except those which are
being contested in good faith by appropriate proceedings and for which adequate
reserves have been provided in accordance with GAAP. Neither any Loan Party nor
any Subsidiary thereof is party to any tax sharing agreement.

 

None of
Holdings or its Subsidiaries has ever been a party to any understanding or
arrangement constituting a “tax shelter” within the meaning of Section
6662(d)(2)(C)(iii) of the Code or within the meaning of Section 6111(c) or

Section 6111(d) of the Code as in effect immediately prior to the enactment of
the American Jobs Creation of 2004, or has ever “participated” in a “reportable
transaction” within the meaning of Treasury Regulation Section 1.6011-4, except
as would not, individually or in the aggregate, have a Material Adverse Effect.

 

52

 

5.12.       ERISA Compliance.

 

(a)           Except as has not resulted and would
not reasonably be expected to result. in a Material Adverse Effect, each Plan
is in compliance with the applicable provisions of ERISA, the Code and other
Federal or state Laws. Each Plan that is intended to qualify under Section 401(a) of the Code has received a
favorable determination letter from the IRS or an application
for such a letter is currently being processed by the IRS with respect thereto
and, to the best knowledge of the Borrower, nothing has occurred which would
prevent, or cause the loss of, such qualification. Holdings and each ERISA
Affiliate have made all required contributions
to each Plan subject to Section 412 of the Code, and no application for a
funding waiver or an extension of any amortization period pursuant, to Section
412 of the Code has been made with respect to any Plan.

 

(b)           There are no pending or, to the best knowledge of
the Borrower, threatened claims, actions or lawsuits, or action by any
Governmental Authority, with respect to any Plan that would reasonably be
expected to have a Material Adverse Effect. There has been no prohibited
transaction or violation of the fiduciary responsibility rules with respect to
any Plan that has resulted or
would reasonably be expected to result in a Material Adverse Effect.

 

(c)           (i) No ERISA Event has occurred or is
reasonably expected to occur; (ii) no Pension Plan has any Unfunded Pension
Liability; (iii) neither the Borrower nor any ERISA Affiliate has incurred, or
reasonably expects to incur, any liability under Title IV of ERISA with respect
to any Pension Plan (other than premiums due and not delinquent under 

Section 4007 of ERISA); (iv) neither the Borrower nor any ERISA Affiliate has
incurred, or reasonably expects to incur, any liability (and no event has
occurred which, with the giving of notice under Section 4219 of ERISA, would
result in such liability) under Section 4201 or 4243 of ERISA with respect to a
Multiemployer Plan; and (v) neither the Borrower nor any ERISA Affiliate has
engaged in a transaction that would be subject to Section 4069 or 42 12(c) of ERISA.

 

(d)           With respect to each scheme or
arrangement mandated by a government other than the United States (a “Foreign
Government Scheme or Arrangement”) and with respect to each employee
benefit plan maintained or contributed to by any Loan Party or any Subsidiary
of any Loan Party that is not subject to United States law (a “Foreign Plan”):

 

(i)            any employer and
employee contributions required by law or by the terms of any Foreign
Government Scheme or Arrangement or any Foreign Plan have been made, or, if
applicable, accrued, in accordance with normal accounting practices;

 

(ii)           the fair market value of the
assets of each funded Foreign Plan, the liability of each insurer for any
Foreign Plan funded through insurance or the book reserve established for any
Foreign Plan, together with any accrued contributions, is sufficient to procure
or provide for the accrued benefit obligations, as of the date hereof, with
respect to all current and former participants in such Foreign Plan according
to the actuarial assumptions and valuations most recently used to account for
such obligations in accordance with applicable generally accepted accounting
principles and to the extent required by applicable laws; and

 

53

 

(iii)          each Foreign Plan
required to be registered has been registered and has been maintained in good
standing with applicable regulatory authorities.

 

5.13.       Subsidiaries; Loan Parties. As of
the Closing Date (after giving effect to the Merger), no Loan Party has any
Subsidiaries other than those specifically disclosed in Part (a) of Schedule
5.13, and all of the outstanding Equity Interests in such Subsidiaries have
been validly issued, are fully paid and non-assessable and are owned by a Loan
Party in the amounts specified on Part (a) of Schedule 5.13 free and
clear of all Liens except those permitted under the Loan Documents. All of the
outstanding Equity Interests in the Borrower have been validly issued, are fully
paid and non-assessable and as of the Closing Date (after giving effect to the
Merger) are owned by Holdings in the amounts specified on Part (b) of Schedule
5.13 free and clear of all Liens except those permitted under the Loan
Documents. Set forth on Part (c) of Schedule 5.13 is a complete and
accurate list of all Loan Parties as of the Closing Date (after giving effect
to the Merger), showing as of the Closing Date (after giving effect to the
Merger) (as to each Loan Party) the jurisdiction of its organization, the
address of its principal place of business and its U.S. taxpayer identification
number or, in the case of any non-U.S. Loan Party that does not have a U.S.
taxpayer identification number, its unique identification number issued to it
by the jurisdiction of its organization, if any. As of the Closing Date (after
giving effect to the Merger), the copy of the charter (or the equivalent
thereof) of each Loan Party and each amendment thereto provided pursuant to Section
4.01(a)(vi) is a true and correct copy of each such document, each of which
is valid and in full force and effect.

 

5.14.       Margin Regulations: Investment Company
Act.

 

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

 

(b)           No Loan Party is required to be registered as an “investment
company” under the Investment
Company Act of 1940.

 

5.15.       Disclosure. To the best knowledge
of the Responsible Officers of the Borrower, (a) all written factual
information (other than the Projections (as defined below) and other
forward-looking information and information of a general economic or industry
specific nature), that has been made available to the Administrative Agent or
any of the Lenders by or on behalf of any Loan Party in connection with the
Merger and the other transactions contemplated hereby on or prior to the date
hereto, taken as a whole, was complete and correct in all material respects
when furnished and did not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements contained
therein, not misleading in light of the circumstances under which such
statements were made and after giving effect to all supplements thereto and (b)
all financial projections concerning Holdings and its Subsidiaries that have been
made available to the Administrative Agent or any of the Lenders by or on
behalf of any Loan Party (the “Projections”) and other forward-looking
information and information of a general economic or industry specific nature,
taken as a whole, has been prepared in good faith based upon reasonable
assumptions (it being recognized by the Administrative Agent and the Lenders
that such Projections and forward-looking information are not to be viewed as
facts and

 

54

 

that actual results during
the period or periods covered thereby may vary and that such variances may be
material).

5.16.       Intellectual Property Licenses. Etc. Schedule 5.17
sets forth as of the Closing Date a true and complete list of (i) all registered
patents and patent applications, registered trademarks and trademark
applications, registered copyrights and copyright applications and domain names
owned by Holdings and its Subsidiaries (collectively, “Owned Intellectual
Property”) and (ii) material licenses of intellectual property granted by
third parties to Holdings or any of its Subsidiaries, or to third parties by
Holdings or any or its Subsidiaries, except (A) licenses of commercially
available off-the-shelf software, (B) licenses of market and other data used in
the ordinary course of business and (C) those licenses the failure of which to
remain in full force and effect would not reasonably be expected to have a
Material Adverse Effect (“Licensed Intellectual Property”). Except as
would not have a Material Adverse Effect, Holdings or one of its Subsidiaries:
(a) is the owner of each listed item of Owned Intellectual Property, and (b) is
entitled to use each item of Licensed Intellectual Property in the operation of
its business as currently conducted. The Owned Intellectual Property is free
and clear of any Lien other than any Lien permitted under the terms of the Loan
Documents.

 

5.17.       Solvency. Holdings is, together with its Subsidiaries
on a consolidated basis, Solvent.

 

5.18.       Collateral Documents. The provisions of the Collateral
Documents are effective (to the extent complied with) to create in favor of the
Administrative Agent for the benefit of the Secured Parties a valid and
perfected second priority Lien (subject to Liens permitted by Section 7.01)
on all right, title and interest of the respective Loan Parties in the
Collateral described therein. Except for filings completed prior to the Closing
Date and as contemplated hereby and by the Collateral Documents, no filing or
other action (except to the extent possession of portions of the Collateral is
required for perfection) will be necessary to perfect or protect such Liens.

 

ARTICLE
VI

AFFIRMATIVE COVENANTS

 

So long as any Lender shall
have any Commitment hereunder, any Loan or other Obligation (other than any
contingent indemnification obligations) hereunder shall remain unpaid or
unsatisfied, Holdings shall, and shall (except in the case of the covenants set
forth in Sections 6.01, 6.02, 6.03 and 6.11) cause
each Subsidiary to:

 

6.01.       Financial Statements. Deliver to the Administrative
Agent:

 

(a)           as soon as available, but in any event within 120 days
after (i) the end of each fiscal year of Holdings (commencing with the fiscal
year ended December 31, 2007, a consolidated balance sheet of Holdings and its
Subsidiaries as at the end of such fiscal year, and (ii) December 31, 2006, a
consolidated balance sheet of RiskMetrics and its Subsidiaries as at the end of
such fiscal year, and (iii) December 31, 2006, a consolidated balance sheet of Seller
and its Subsidiaries as at the end of such fiscal year, and, in the case of
each of the foregoing clauses and (i), (ii) and (iii),
the related consolidated statements of income or operations, shareholders
equity

 

55

 

and cash flows for such fiscal year, setting
forth in each case in comparative form the figures for the previous fiscal
year, (commencing with fiscal year 2008), all in reasonable detail and prepared
in accordance with GAAP, audited and accompanied by a report and opinion of a
Registered Public Accounting Firm of nationally recognized standing reasonably
acceptable to the Required Lenders, which report and opinion shall be prepared
in accordance with generally accepted auditing standards and shall not be
subject to any “going concern” or like qualification or exception or any
qualification or exception as to the scope of such audit or with respect to the
absence of any material misstatement;

 

(b)           as soon as available, but in any event within 45 days
after (i) the end of each fiscal quarter of Holdings (commencing with the
fiscal quarter ended March 31, 2007), a consolidated balance sheet of Holdings
and its Subsidiaries as at the end of such fiscal quarter, (ii) December 31,
2006, a consolidated balance sheet of RiskMetrics and its Subsidiaries as at
the end of such fiscal quarter, and (iii) December 31, 2006, a consolidated
balance sheet of Seller and its Subsidiaries as at the end of such fiscal
quarter, and in the case of each of the foregoing clauses (i), (ii)
and (iii), the related consolidated statements of income or operations,
shareholders’ equity and cash flows for such fiscal quarter and for the portion
of the fiscal year then ended, setting forth in each case in comparative form
the figures for the corresponding fiscal quarter (commencing with the fiscal
quarter ended March 31, 2008) of the previous fiscal year and the corresponding
portion of the previous fiscal year, all in reasonable detail, certified by the
chief executive officer, chief financial officer, treasurer or controller of
Holdings as fairly presenting the financial condition, results of operations,
shareholders’ equity and cash flows of Holdings and its Subsidiaries in
accordance with GAAP, subject only to normal year-end audit adjustments and the
absence of footnotes; and

 

(c)           as soon as available, but in any event not later than 60
days after the first day of each fiscal year of Holdings (commencing with
fiscal year 2008), an annual business plan and budget of Holdings and its
Subsidiaries on a consolidated basis for such fiscal year, including forecasts
prepared by management of the Borrower in the form customarily prepared by
management of the Borrower for its internal use, of consolidated balance sheets
and statements of income or operations and cash flows of Holdings and its
Subsidiaries on a quarterly basis for the immediately following fiscal year
(including the fiscal year in which the Maturity Date occurs).

 

As to any information contained in materials
furnished pursuant to Section 6.02(d), the Borrower shall not be
separately required to furnish such information under Section 6.01(a) or
(b) above, but the foregoing shall not be in derogation of the obligation of
the Borrower to furnish the information and materials described in Sections
6.01(a) and (b) above at the times specified therein.

 

6.02.       Certificates: Other Information. Deliver to the
Administrative Agent:

 

(a)           concurrently with the delivery of the financial statements
referred to in Section 6.01(a) (commencing with the delivery of the
financial statements for the fiscal year ended December 31, 2007, a certificate
of its independent certified public accountants certifying such financial
statements and stating that in making the examination necessary therefor no
knowledge was obtained of any Default under Section 7.11 or, if any such
Default shall exist,

 

56

 

stating the nature and status of such event; provided
that if, as a matter of policy, such accountants cease to provided such
statements generally (and not only to the Borrower), the Borrower shall not be
required to deliver such certificate;

 

(b)           concurrently with the delivery of the financial statements
referred to in Sections 6.01(a) and (b) (commencing with the
delivery of the financial statements for the fiscal quarter ended June 30,
2007) a duly completed Compliance Certificate signed by the chief executive
officer, chief financial officer, treasurer or controller of Holdings and (ii)
a copy of management’s discussion and analysis with respect to such financial
statements;

 

(c)           promptly after any request by the Administrative Agent or
any Lender, copies of any detailed audit reports, management letters or
recommendations submitted to the board of directors (or the audit committee of
the board of directors) of any Loan Party by independent accountants in
connection with the accounts or books of any Loan Party or any of its
Subsidiaries, or any audit of any of them;

 

(d)           promptly after the same are available, copies of each
annual report, proxy or financial statement or other report or communication
sent to the stockholders of the Borrower, and copies of all annual, regular,
periodic and special reports and registration statements which the Borrower may
file or be required to file with the SEC under Section 13 or 15(d) of the
Securities Exchange Act of 1934, or with any national securities exchange, and
in any case not otherwise required to be delivered to the Administrative Agent
pursuant hereto;

 

(e)           promptly after the furnishing thereof, copies of any
statement or report furnished to any holder of debt securities of any Loan
Party or of any of its Subsidiaries pursuant to the terms of any indenture,
loan or credit or similar agreement and not otherwise required to be furnished
to the Lenders pursuant to Section 6.01 or any other clause of this

Section 6.02;

 

(f)            promptly, and in any event within five Business Days
after receipt thereof by any Loan Party or any Subsidiary thereof, copies of
each notice or other correspondence received from the SEC (or comparable agency
in any applicable non-U.S. jurisdiction) concerning any investigation or
possible investigation or other inquiry by such agency regarding financial or
other operational results of any Loan Party or any Subsidiary thereof;

 

(g)           promptly after the assertion or occurrence thereof, notice
of any action or proceeding against or of any noncompliance by any Loan Party
or any of its Subsidiaries with any Environmental Law or Environmental Permit
that would reasonably be expected to have a Material Adverse Effect;

 

(h)           as soon as available, but in any event within 30 days
after the end of each fiscal year of Holdings, a report supplementing Schedule
5.17, setting forth (A) a list of registration numbers for all patents,
trademarks, service marks, trade names and copyrights awarded to any Loan Party
during such fiscal year and (B) a list of all patent applications, trademark
applications, service mark applications, trade name applications and copyright
applications submitted by any Loan Party or any Subsidiary thereof during such
fiscal year and the status of each such application in a form reasonably
satisfactory to the Administrative Agent; and

 

57

 

(i)             promptly, such additional information regarding the
business, financial, legal or corporate affairs of any Loan Party or any
Subsidiary thereof, or compliance with the terms of the Loan Documents, as the
Administrative Agent may from time to time reasonably request.

 

Documents required to be
delivered pursuant to Section 6.01(a) or (b) or Section
6.02(d) (to the extent any such documents are included in materials
otherwise filed with the SEC) may be delivered electronically and if so
delivered, shall be deemed to have been delivered on the date (i) on which the
Borrower posts such documents, or provides a link thereto. on the Borrower’s
website on the Internet at the website address listed on Schedule 11.02;
or (ii) on which such documents are posted on the Borrower’s behalf on an
Internet or intranet website, if any, to which each Lender and the
Administrative Agent have access (whether a commercial, third-party website or
whether sponsored by the Administrative Agent); provided that: (i) the
Borrower shall deliver paper copies of such documents to the Administrative
Agent or any Lender that requests the Borrower to deliver such paper copies
until a written request to cease delivering paper copies is given by the
Administrative Agent or such Lender and (ii) the Borrower shall notify the
Administrative Agent and each Lender (by telecopier or electronic mail) of the
posting of any such documents and provide to the Administrative Agent by
electronic mail electronic versions (i.e., soft copies) of such documents.
Notwithstanding anything contained herein, in every instance the Borrower shall
be required to provide paper copies of the Compliance Certificates required by Section
6.02(b) to the Administrative Agent. Except for such Compliance
Certificates, the Administrative Agent shall have no obligation to request the
delivery or to maintain copies of the documents referred to above, and in any
event shall have no responsibility to monitor compliance by the Borrower with
any such request for delivery, and each Lender shall be solely responsible for
requesting delivery to it or maintaining its copies of such documents.

 

The Borrower hereby
acknowledges that (a) the Administrative Agent and/or the Arrangers will make
available to the Lenders materials and/or information provided by or on behalf
of the Borrower hereunder (collectively, “Borrower Materials”) by
posting the Borrower Materials on IntraLinks or another similar electronic
system (the “Platform”) and (b) certain of the Lenders may be “public-side”
Lenders (i.e., Lenders that do not wish to receive material nonpublic
information with respect to the Borrower or its securities) (each, a “Public
Lender”). The Borrower hereby agrees that so long as the Borrower is the
issuer of any outstanding debt or equity securities that are registered or
issued pursuant to a private offering or is actively contemplating issuing any
such securities it will use commercially reasonable efforts to identify that
portion of the Borrower Materials that may be distributed to the Public Lenders
and that (w) all such Borrower Materials shall be clearly and conspicuously
marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall
appear prominently on the first page thereof; (x) by marking Borrower Materials
“PUBLIC,” the Borrower shall be deemed to have authorized the Administrative
Agent, the Arrangers and the Lenders to treat such Borrower Materials as not
containing any material non-public information (although it may be sensitive
and proprietary) with respect to the Borrower or its securities for purposes of
United States Federal and state securities laws (provided, however,
that to the extent such Borrower Materials constitute Information, they shall
be treated as set forth in Section 11.07); (y) all Borrower Materials
marked “PUBLIC” are permitted to be made available through a portion of the

 

58

 

Platform designated “Public
Investor”; and (z) the Administrative Agent and the Arrangers shall be entitled
to treat any Borrower Materials that are not marked “PUBLIC” as being suitable
only for posting on a portion of the Platform not designated “Public Investor.”
Notwithstanding the foregoing, the Borrower shall be under no obligation to
mark any Borrower Materials “PUBLIC.”

 

6.03.        Notices. Promptly notify the Administrative Agent and
each Lender:

 

(a)            of the occurrence of any Default;

 

(b)           of any matter that has resulted or would reasonably be
expected to result in a Material Adverse Effect, including (i) breach or non-performance
of, or any default under, a Contractual Obligation of any Loan Party or any
Subsidiary thereof; (ii) any dispute, litigation, investigation, proceeding or
suspension between any Loan Party or any Subsidiary thereof and any
Governmental Authority; or (iii) the commencement of, or any material
development in, any litigation or proceeding affecting any Loan Party or any
Subsidiary thereof, including pursuant to any applicable Environmental Laws;

 

(c)            of the occurrence of any ERISA Event that would reasonably
be expected to result in liability in excess of the Threshold Amount;

 

(d)           of any material change in accounting policies or financial
reporting practices by any Loan Party or any Subsidiary thereof;

 

(e)            of the (i) occurrence of any Disposition of property or
assets for which the Borrower is required to make a mandatory prepayment
pursuant to Section 2.05(b)(ii), (ii) incurrence or issuance of any
Indebtedness for which the Borrower is required to make a mandatory prepayment
pursuant to Section 2.05(b)(iii), and (iii) receipt of any Extraordinary
Receipt for which the Borrower is required to make a mandatory prepayment
pursuant to Section 2.05(b)(iv); and

 

Each notice pursuant to Section
6.03 shall be accompanied by a statement of a Responsible Officer of the
Borrower setting forth details of the occurrence referred to therein and
stating what action the Borrower has taken and proposes to take with respect
thereto. Each notice pursuant to Section 6.03(a) shall describe with
particularity any and all provisions of this Agreement and any other Loan
Document that have been breached.

 

6.04.        Payment of Obligations. Except as would not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect, pay and discharge as the same shall become due and payable, all
its material obligations and liabilities, including (a). all tax liabilities,
assessments and governmental charges or levies upon it or its properties or
assets, unless the same are being contested in good faith by appropriate
proceedings and adequate reserves in accordance with GAAP are being maintained
by the Borrower or such Subsidiary; (b) all lawful claims which, if unpaid,
would by law become a Lien upon its property (other than any Lien permitted
under Section 7.01); and (c) all Indebtedness, as and when due and
payable, but subject to any subordination provisions contained in any
instrument or agreement evidencing such Indebtedness.

 

59

 

6.05.       Preservation of Existence, Etc. (a) Preserve, renew and
maintain in full force and effect its legal existence and good standing under
the Laws of the jurisdiction of its organization except in a transaction
permitted by Section 7.04 or 7.05; provided, however,
that the Borrower and its Subsidiaries may consummate the Merger and any other
merger or consolidation permitted under Section 7.04; (b) take all
reasonable action to maintain all rights, privileges, permits, licenses and
franchises necessary or desirable in the normal conduct of its business, except
to the extent that failure to do so would not reasonably be expected to have a
Material Adverse Effect; and (c) preserve or renew all of its registered
patents, trademarks, trade names and service marks, the non-preservation of which
would reasonably be expected to have a Material Adverse Effect.

 

6.06.       Maintenance of Properties. (a) Maintain, preserve and
protect all of its material properties and equipment necessary in the operation
of its business in good working order and condition, ordinary wear and tear
excepted; and (b) make all necessary repairs thereto and renewals and
replacements thereof except where the failure to do so would not reasonably be
expected to have a Material Adverse Effect.

 

6.07.      Maintenance of Insurance. Maintain with financially
sound and reputable insurance companies not Affiliates of the Borrower,
insurance with respect to its properties and business against loss or damage of
the kinds customarily insured against by Persons engaged in the same or similar
business, of such types and in such amounts as are customarily carried under
similar circumstances by such other Persons and providing for not less than 30
days’ prior notice to the Administrative Agent of termination, lapse or
cancellation of such insurance.

 

6.08.        Compliance with Laws. Comply in all material respects
with the requirements of all Laws and all orders, writs, injunctions and
decrees applicable to it or to its business or property, except in such
instances in which (a) such requirement of Law or order, writ, injunction or
decree is being contested in good faith by appropriate proceedings or (b) the
failure to comply therewith would not reasonably be expected to have a Material
Adverse Effect.

 

6.09.        Books and Records. Maintain proper books of record and
account, in which full, true and correct entries, in all material respects, in
conformity with GAAP consistently applied shall be made of all financial
transactions and matters involving the assets and business of the Borrower or
such Subsidiary, as the case may be.

 

6.10.        Inspection Rights. (a) Upon reasonable advance notice
to the Borrower and at reasonable times during normal business hours, permit
representatives and independent contractors of the Administrative Agent and
each Lender to visit and inspect any of its properties, to examine its
corporate, financial and operating records, and make copies thereof or
abstracts therefrom, and to discuss its affairs, finances and accounts with its
directors, officers, and independent public accountants, all at the expense of
the Borrower; provided, however, that so long as no Event of
Default shall have occurred and be continuing, (i) only the Administrative
Agent on behalf of the Lenders may exercise rights of the Administrative Agent
and the Lenders under this Section 6.10 and (ii) only one such
visit shall be at the Borrower’s expense; provided  further that
when an Event of Default exists and is continuing, the Administrative Agent or
any Lender (or any of their respective representatives or independent
contractors) may do any of the foregoing at the expense of the Borrower at any
time during normal business hours and upon

 

60

 

reasonable advance notice
and (b) host a telephonic meeting annually with Lenders to discuss the Borrower’s
affairs, finances and accounts with the Borrower’s directors, officers, and
independent public accountants, all at the expense of the Borrower.

 

6.11.       Use of Proceeds. Use the proceeds
of the Loans made on the Closing Date to consummate the Transaction.

 

6.12.       Covenant to Guarantee Obligations and Give Security.

 

(a)           Upon the formation or acquisition of
any new direct or indirect Subsidiary by any Loan Party, then the Borrower
shall, at the Borrower’s expense:

 

(i)           within 30 days after such formation
or acquisition, cause such Subsidiary (other than an Excluded Subsidiary or a
CFC); and cause each direct and indirect parent of such Subsidiary (other than
an Excluded Subsidiary or a CFC) (if it has not already done so), to duly
execute and deliver to the Administrative Agent a guaranty or guaranty
supplement, in form and substance reasonably satisfactory to the Administrative
Agent, guaranteeing the other Loan Parties’ obligations under the Loan
Documents,

 

(ii)          within 30 days after such formation or
acquisition, furnish to the Administrative Agent a description of the real and
personal properties (other than any Excluded Property) of such Subsidiary
(other than an Excluded Subsidiary or a CFC),

 

(iii)         within 45 days after such formation or
acquisition, cause (A) such Subsidiary (other than an Excluded Subsidiary or a
CFC) to duly execute and deliver to the Administrative Agent deeds of trust,
trust deeds, deeds to secure debt, mortgages (but only with respect to owned
real property with a fair market value in excess of $4,000,000), Joinder
Agreements, intellectual property security agreement supplements and other
security and pledge agreements, as specified by and in form and substance
reasonably satisfactory to the Administrative Agent (including delivery of all
Pledged Securities by such Subsidiary, and other instruments of the type
specified in Section 4.01 (a)(iii)) and (B) each direct and indirect
parent of such Subsidiary (other than an Excluded Subsidiary) to deliver all
Pledged Securities of such Subsidiary (other than an Excluded Subsidiary) to
the Administrative Agent, in each case, securing payment of all the Obligations
of such Subsidiary or such parent, as the case may be, under the Loan Documents
and constituting Liens on all such real and personal properties; provided
that the direct or indirect parent of any CFC shall not be required to deliver
Equity Interests of such CFC which represent more than 65% of the total voting
power of all Equity Interests of such CFC,

 

(iv)         within 60 days after such formation or
acquisition, deliver to the Administrative Agent, upon the request of the
Administrative Agent in its sole discretion, a signed copy of a favorable
opinion, addressed to the Administrative Agent and the other Secured Parties,
of counsel for the Loan Parties acceptable to the Administrative Agent as to
the matters contained in clauses (i) and (iii) above, and as to such other
matters as the Administrative Agent may reasonably request, and

 

61

 

(b)           Upon the acquisition of any real property with a fair
market value in excess of $4,000,000 (but excluding any leasehold estate) by
any Loan Party, if such real property, in the judgment of the Administrative
Agent, shall not already be subject to a perfected second priority security
interest in favor of the Administrative Agent for the benefit of the Secured
Parties, then the Borrower shall, at the Borrower’s expense:

 

(i)           within 30 days after such
acquisition, furnish to the Administrative Agent a description of the real
property so acquired in detail satisfactory to the Administrative Agent,

 

(ii)          within 30 days after such acquisition,
cause the applicable Loan Party to duly execute and deliver to the
Administrative Agent deeds of trust, trust deeds, deeds to secure debt, and
mortgages, as specified by and in form and substance (but only with respect to
real properties with a fair market value in excess of $4,000,000) satisfactory
to the Administrative Agent, securing payment of all the Obligations of the
applicable Loan Party under the Loan Documents and constituting Liens on all
such properties,

 

(iii)         within (4)(5) days after such
acquisition, cause the applicable Loan Party to take whatever action (including
the recording of mortgages, the filing of Uniform Commercial Code financing
statements, the giving of notices and the endorsement of notices on title
documents) may be necessary in the reasonable opinion of the Administrative
Agent to vest in the Administrative Agent (or in any representative of the
Administrative Agent designated by it) valid and subsisting Liens on such
property enforceable against all third parties, and

 

(iv)         within 60 days after such acquisition,
deliver to the Administrative Agent, upon the request of the Administrative
Agent in its sole discretion, a signed copy of a favorable opinion, addressed
to the Administrative Agent and the other Secured Parties, of counsel for the
Loan Parties reasonably acceptable to the Administrative Agent as to the
matters contained in clauses (ii) and (iii) above, and as to such other matters
as the Administrative Agent may reasonably request.

 

(c)            At any time upon the reasonable request of the
Administrative Agent, promptly execute and deliver any and all further
instruments and documents and take all such other action as the Administrative
Agent may deem reasonably necessary in obtaining the full benefits of, or (as
applicable) in perfecting and preserving the Liens of, such guaranties, deeds
of trust, trust deeds, deeds to secure debt, mortgages, Joinder Agreements,
intellectual property security agreement supplements and other security and
pledge agreements; provided that notwithstanding the foregoing, the
preceding requirements of this Section 6.12 shall not apply to any
Excluded Property.

 

6.13.       Compliance with Environmental Laws. Comply, and take
commercially reasonable steps to cause all lessees and other Persons operating
or occupying its properties to comply, in all material respects, with all
applicable Environmental Laws and Environmental Permits; obtain and renew all
Environmental Permits necessary for its operations and properties; and conduct
any investigation, study, sampling and testing, and undertake any cleanup,
removal, remedial or other action necessary to remove and clean up all
Hazardous Materials from any of

 

62

 

its properties where
required to do so pursuant to applicable Environmental Laws; provided, however,
that neither the Borrower nor any of its Subsidiaries shall be required to
undertake any such cleanup, removal, remedial or other action to the extent
that its obligation to do so is being contested in good faith and by proper
proceedings and appropriate reserves are being maintained with respect to such
circumstances in accordance with GAAP.

 

6.14.        Further Assurances. Promptly upon the reasonable
request by the Administrative Agent, or any Lender through the Administrative
Agent, (a) correct any material defect or error that may be discovered in any Loan
Document or in the execution, acknowledgment, filing or recordation there of,
and (b) to execute, acknowledge, deliver, record, re-record, file, re-file,
register and re-register any and all such further acts, deeds, certificates,
assurances and other instruments as the Administrative Agent may reasonably
require from time to time in order to (i) carry out more effectively the
purposes of the Loan Documents, (ii) to the fullest extent permitted by
applicable law, subject any Loan Party’s or any of its Subsidiaries’
properties, assets, rights or interests to the Liens now or hereafter intended
to be covered by any of the Collateral Documents, (iii) perfect and maintain
the validity, effectiveness and priority of any of the Collateral Documents and
any of the Liens intended to be created thereunder and (iv) assure, convey,
grant, assign, transfer, preserve, protect and confirm more effectively unto
the Secured Parties the rights granted or now or hereafter intended to be
granted to the Secured Parties under any Loan Document or under any other
instrument executed in connection with any Loan Document to which any Loan
Party or any of its Subsidiaries is or is to be a party, and cause each of its
Subsidiaries to do so.

 

6.15.        [Reserved]

 

6.16.        Material Contracts. Perform and observe all the terms
and provisions of each Material Contract to be performed or observed by it,
maintain each such Material Contract in full force and effect, and enforce each
such Material Contract in accordance with its terms and cause each of its
Subsidiaries to do so, except, in any case, where the failure to do so, either
individually or in the aggregate, would not reasonably be expected to have a
Material Adverse Effect.

 

6.17.        Designation of Unrestricted Subsidiaries. Holdings’
board of directors may, at any time, designate any Subsidiary that is acquired
or created after the Closing Date as an Unrestricted Subsidiary by prior
written notice to the Administrative Agent; provided that Holdings shall
only be permitted to so designate a new Unrestricted Subsidiary after the
Closing Date and so long as (a) no Default or Event of Default exists or would
result therefrom, (b) such Subsidiary does not own any capital stock or
Indebtedness of, or own or hold a Lien on any property of, Holdings or any
other Subsidiary that is not a subsidiary of the Subsidiary to be so
designated, (c) such Unrestricted Subsidiary shall be capitalized (to the
extent capitalized by Holdings or any of its Subsidiaries) through Investments
permitted by, and in compliance with, Sections 7.03(i) or (k)
with any assets owned by such Unrestricted Subsidiary at the time of the
initial designation thereof to be treated as Investments pursuant to Section
7.03(i) or (k) and (d) Holdings shall have been able to make a
Restricted Payment in accordance with Section 7.06(g) in an amount equal
to the greater of (i) the aggregate of all investments made in such Subsidiary
and (ii) the fair market value of such Subsidiary, provided that at the
time of the initial

 

63

 

Investment by Holdings or
any of its Subsidiaries in such Subsidiary, the Borrower shall designate such
entity as an Unrestricted Subsidiary in a written notice to the Administrative
Agent. Holdings may designate any Unrestricted Subsidiary to be a Subsidiary
for purposes of this Agreement (each, a “Subsidiary Redesignation”); provided
further that (i) such Unrestricted Subsidiary, both before and after
giving effect to such designation, shall be a wholly owned Subsidiary of
Holdings, (ii) no Default or Event of Default then exists or would occur as a
consequence of any such Subsidiary Redesignation, (iii) based on good faith
projections prepared by Holdings for the period from the date of the respective
Subsidiary Redesignation to the date that is one year thereafter, the
Consolidated Leverage Ratio shall be better than or equal to such level as
would be required to provide that no Default or Event of Default would exist
under Section 7.11 through the date that is one year from the date of
the respective Subsidiary Redesignation, (iv) all representations and
warranties contained herein and in the other Loan Documents shall be true and
correct in all material respects with the same effect as though such
representations and warranties had been made on and as of the date of such
Subsidiary Redesignation (both before and after giving effect thereto), unless
stated to relate to a specific earlier date, in which case such representations
and warranties shall be true and correct in all material respects as of such
earlier date, (v) Holdings’ shall have delivered to the Administrative Agent an
officer’s certificate executed by a Responsible Officer, certifying to the best
of such officer’s knowledge, compliance with the requirements of preceding
clauses (i) through (iv), inclusive, and containing the calculations required
by the preceding clause (iii), and (vi) any Unrestricted Subsidiary subject to
a Subsidiary Redesignation may not thereafter be designated as an Unrestricted
Subsidiary.

 

6.18.       Post-Closing Covenant. To the extent not delivered on
the Closing Date, the Borrower shall, and shall cause each relevant Loan Party
to meet the following requirements within the time frames specified below; provided
that in each case, the Administrative Agent may waive any requirement of this Section
6.18 in whole or in part, or extend the number of days for compliance,
subject to such terms and conditions as the Administrative Agent may determine
in its sole discretion:

 

(a)            The Borrower shall as expeditiously as possible, but in
no event later than 30 days after the Closing Date, deliver to the
Administrative Agent certificates or instruments representing or evidencing the
Pledged Securities with respect to the Equity Interests of RiskMetrics (U.K.)
Limited, RiskMetrics (Singapore) Pte Ltd., RiskMetrics Group KK, 1 Corporate
Governance Pty Ltd. and Institutional Shareholders Services Pty Ltd., in each
case, accompanied by instruments of transfer and stock powers undated and
endorsed in blank; and

 

(b)            The Borrower shall as expeditiously as possible, but in
no event later than 3 Business Days after the Closing Date, deliver to the
Administrative Agent certificates or instruments representing or evidencing the
Pledged Securities with respect to the Equity Interests of ISS Corporate
Services, Inc., accompanied by instrument of transfer and stock powers undated
and endorsed in blank.

 

64

 

ARTICLE
VII

NEGATIVE COVENANTS

 

So long as any Loan or other
Obligation (other than any contingent indemnification obligations) hereunder
shall remain unpaid or unsatisfied, Holdings shall not, nor shall it permit any
Subsidiary to, directly or indirectly, and solely in the case of Section
7.17, Holdings shall not:

 

7.01.        Liens. Create, incur, assume or suffer to exist any
Lien upon any of its property, assets or revenues, whether now owned or
hereafter acquired, or sign or file or suffer to exist under the Uniform
Commercial Code of any jurisdiction a financing statement that names the
Borrower or any of its Subsidiaries as debtor, or assign any accounts or other
right to receive income, other than the following:

 

(a)            Liens pursuant to any Loan Document or any First Lien
Loan Document; 

 

(b)            Liens existing on the date hereof and listed on Schedule
7.01(b) and any renewals or extensions thereof, provided that (i)
the property covered thereby is not changed, (ii) the amount secured or
benefited thereby is not increased except as contemplated by Section 7.02(e),
(iii) the director any contingent obligor with respect thereto is not changed,
and (iv) any renewal or extension of the obligations secured or benefited
thereby is permitted by Section 7.02(e);

 

(c)            Liens for taxes not yet due or which are being contested
in good faith and by appropriate proceedings, if adequate reserves with respect
thereto are maintained on the books of the applicable Person in accordance with
GAAP;

 

(d)            carriers’, warehousemen’s, mechanics’, materialmen’s,
repairmen’s or other like Liens arising in the ordinary course of business
which are not overdue for a period of more than 45 days or which are being
contested in good faith and by appropriate proceedings, if adequate reserves
with respect thereto are maintained on the books of the applicable Person;

 

(e)            pledges or deposits in the ordinary course of business in
connection with workers’ compensation, unemployment insurance and other social
security legislation, other than any Lien imposed by ERISA;

 

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

 

(g)            easements, rights-of-way, restrictions and other similar
encumbrances affecting real property which, in the aggregate, are not
substantial in amount, and which do not in any case materially detract from the
value of the property subject thereto or materially interfere with the ordinary
conduct of the business of the applicable Person;

 

(h)            Liens securing judgments for the payment of money not
constituting an Event of Default under Section 8.01(h);

 

65

 

(i)             Liens securing Indebtedness permitted under Section 7.02(g);
provided that such Liens do not at any time encumber any property other
than the property financed by such Indebtedness;

 

(j)             (i) Liens on property of a Person existing at the time
such Person is merged into or consolidated with the Borrower or any Subsidiary
of the Borrower or becomes a Subsidiary of the Borrower; provided that
such Liens were not created in contemplation of such merger, consolidation or
investment and do not extend to any assets other than those of the Person
merged into or consolidated with the Borrower or such Subsidiary or acquired by
the Borrower or such Subsidiary; and (ii) Liens on property of a Person
existing at the time such property is purchased by the Borrower or any
Subsidiary of the Borrower in a transaction constituting a Permitted
Acquisition; provided that such Liens were not created in contemplation
of such acquisition;;

 

(k)            leases, licenses, subleases or sublicenses granted to
others in the ordinary course of business that do not (i) interfere in any
material respect with the business of Holdings or any of its Subsidiaries or
(ii) secure any Indebtedness;

 

(1)            Liens arising out of conditional sale, title retention,
consignment or similar arrangements for sale of goods entered into by Holdings
or any of its Subsidiaries in the ordinary course of business permitted by this
Agreement;

 

(m)           the replacement, extension or renewal of any Lien
permitted by clauses (i) and (j) above upon or in the same property theretofore
subject thereto or the replacement, extension or renewal (without increase in
the amount or change in any direct or contingent obligor) of the Indebtedness
secured thereby;

 

(n)           zoning, entitlement and other similar land use
restrictions or regulations by any Governmental Authority;

 

(o)            any interest or title of a lessor or sublessor under any
lease not prohibited under the terms of the Loan Documents;

 

(p)            Liens on cash earnest money deposits made by Holdings or
any of its Subsidiaries in connection with any letter of intent or purchase
agreement;

 

(q)            Liens evidenced by the filing of precautionary UCC
financing statements relating solely to operating leases of personal property
entered into the ordinary course of business;

 

(r)             Liens in favor of customs and revenue authorities
arising as a matter of law to secure payment of customs duties in connection
with the importation of goods;

 

(s)             licenses of patents, trademarks and other intellectual
property rights granted by the Borrower or any of its Subsidiaries in the
ordinary course of business and not interfering in any respect with the
ordinary conduct of the business of the Borrower or such Subsidiary;

 

66

 

(t)            Liens arising by virtue of any statutory or common law
provision relating to bankers’ liens, rights of set-off or similar rights;

 

(u)           escrow deposits of source codes in the ordinary course of
business in connection with licensing of intellectual property by Borrower or
any of its Subsidiaries to its customers; and

 

(v)           other Liens securing Indebtedness outstanding in an
aggregate principal amount not to exceed $12,000,000, provided that no
such Lien shall extend to or cover any Collateral.

 

7.02.        Indebtedness. Create, incur, assume or suffer to exist
any Indebtedness, except:

 

(a)           obligations (contingent or otherwise) existing or arising
under any Swap Contract, provided that (i) such obligations are (or
were) entered into by such Person in the ordinary course of business for the
purpose of directly mitigating risks associated with fluctuations in interest rates
or foreign exchange rates and (ii) such Swap Contract does not contain any
provision exonerating the non-defaulting party from its obligation to make
payments on outstanding transactions to the defaulting party;

 

(b)            Indebtedness under the First Lien Credit Agreement in an
aggregate principal amount not to exceed $425,000,000;

 

(c)            Indebtedness of a Subsidiary of Holdings owed to Holdings
or a wholly owned Subsidiary of Holdings, which Indebtedness shall (i) in the
case of Indebtedness owed to a Loan Party, constitute “Pledged Debt” under the
Security Agreement, and (ii) be otherwise permitted under the provisions of Section
7.03;

 

(d)           Indebtedness under the Loan Documents;

 

(e)            Indebtedness outstanding on the date hereof and listed on
Schedule 7.02 and any Permitted Refinancing thereof;

 

(f)            Guarantees of Holdings or any Subsidiary in respect of
Indebtedness otherwise permitted hereunder of the Borrower or any wholly owned
Subsidiary;

 

(g)            Indebtedness in respect of Capitalized Leases, Synthetic
Lease Obligations and purchase money obligations for fixed or capital assets
within the limitations set forth in Section 7.01 (i); provided, however,
that the aggregate amount of all such Indebtedness at any one time outstanding
shall not exceed $24,000,000;

 

(h)           Indebtedness of any Person that becomes a Subsidiary of
the Borrower after the date hereof in accordance with the terms of Section
7.03(h), which Indebtedness is existing at the time such Person becomes a
Subsidiary of the Borrower (other than Indebtedness incurred solely in
contemplation of such Person’s becoming a Subsidiary of the Borrower) and any
Permitted Refinancing thereof;

 

67

 

(i)             Indebtedness of Holdings and its Subsidiaries (i)
assumed in connection with any Permitted Acquisition, provided that such
Indebtedness is not incurred in contemplation of such Permitted Acquisition, or
(ii) owed to the seller of any property acquired in a Permitted Acquisition on
an unsecured subordinated (relative to the Loan Documents) basis and any
Permitted Refinancing thereof;

 

(j)             Indebtedness representing deferred compensation to
employees of Holdings and its Subsidiaries incurred in the ordinary course of
business;

 

(k)            Indebtedness incurred by Holdings or its Subsidiaries in
a Permitted Acquisition or Disposition under agreements providing for indemnification;

 

(1)            Indebtedness in respect of netting services, overdraft
protections and similar arrangements in each case in connection with deposit
accounts;

 

(m)           Indebtedness incurred by Holdings or any of its
Subsidiaries constituting reimbursement obligations with respect to letters of
credit, bank guarantees or similar instruments issued in respect of workers
compensation claims, health, disability or other employee benefits or property,
casualty or liability insurance or self-insurance or other Indebtedness with
respect to similar reimbursement type obligations; provided that upon
the drawing of such letters of credit or the incurrence of such Indebtedness,
such obligations are reimbursed within 30 days following such drawing or
incurrence;

 

(n)            Indebtedness of CFCs owed to Holdings or any Subsidiary
of Holdings incurred in the ordinary course of business and substantially
consistent with past practice;

 

(o)            unsecured Indebtedness in an aggregate principal amount
not to exceed $30,000,000 at any time outstanding; and

 

(p)            to the extent constituting Indebtedness, contingent
obligations under or in respect of performance bonds, bid bonds, appeal bonds,
surety bonds, financial assurances, completion guarantees, indemnification
obligations, obligations to pay insurance premiums, take or pay obligations and
similar obligations in each case incurred in the ordinary course of business
and not in connection with debt for borrowed money.

 

It is understood and agreed
that any Indebtedness borrowed in a foreign currency shall continue to be
permitted under this Section 7.02, notwithstanding any fluctuation
in the Dollar amount of such Indebtedness, as long as the outstanding principal
balance of such Indebtedness (denominated in its original currency) does not
exceed the maximum amount of such Indebtedness (denominated in such currency)
permitted to be outstanding on the date such Indebtedness was incurred.

 

7.03.       Investments. Make or hold any Investments, except:

 

(a)            Investments held by the Borrower and its Subsidiaries in
the form of Cash Equivalents;

 

68

 

(b)           (i) loans and advances to officers, directors and
employees of Holdings and its Subsidiaries in an aggregate amount not to exceed
$2,000,000 at any time outstanding, for travel, entertainment, relocation and
analogous ordinary business purposes and (ii) loans and advances to directors,
employees and officers of Holdings and its Subsidiaries in connection with the
purchase of Equity Interests of Holdings by such directors, employees or
officers not to exceed $2,000,000 at any time outstanding;

 

(c)            (i) Investments by Holdings and its Subsidiaries in their
respective Subsidiaries outstanding on the date hereof, (ii) additional
Investments by Holdings and its Subsidiaries in Loan Parties (other than
Holdings), (iii) additional Investments by Subsidiaries of Holdings that are
not Loan Parties in other Subsidiaries that are not Loan Parties and (iv) additional
Investments by Loan Parties and Subsidiaries that are not Loan Parties in CFCs
in the ordinary course of business and substantially consistent with past
practice;

 

(d)           (i) Investments consisting of extensions of credit in the
nature of accounts receivable or notes receivable arising from the grant of
trade credit in the ordinary course of business, and Investments received in
satisfaction or partial satisfaction thereof from financially troubled account
debtors to the extent reasonably necessary in order to prevent or limit loss
and (ii) Investments received in satisfaction of judgments or pursuant to any
plan of reorganization or similar arrangement upon the bankruptcy or insolvency
of trade creditors or account debtors;

 

(e)            Guarantees and Indebtedness permitted by Section 7.02;

 

(f)            Investments existing on the date hereof and set forth on Schedule
7.03(f); 

 

(g)            Investments by the Borrower in Swap Contracts permitted
under Section 7.02(a);

 

(h)           the purchase or other acquisition of all of the Equity
Interests in, or all or substantially all of the property of, any Person or of
assets constituting a business unit, line of business or division of such
Person that, upon the consummation thereof, will be wholly-owned directly by
the Borrower or one or more of its wholly owned Subsidiaries (including as a
result of a merger or consolidation);.provided that, with respect to
each purchase or other acquisition made pursuant to this Section 7.03(h)
(each, a “Permitted Acquisition”):

 

(i)             any such newly-created or acquired Subsidiary shall
comply with the  requirements of Section
6.12;

 

(ii)           (A) immediately before and
immediately after giving pro forma effect to any such purchase or other
acquisition, no Default shall have occurred and be continuing and (B)
immediately after giving effect to such purchase or other acquisition, Holdings
and its Subsidiaries shall be in pro forma compliance with all of the covenants
set forth in Section 7.11, such compliance to be determined on the
basis of the financial information most recently delivered to the
Administrative Agent and the Lenders pursuant to Section 6.01(a) or (b) as
though such purchase or other acquisition had been consummated as of the first
day of the fiscal period covered thereby;

 

69

 

(iii)          immediately after giving pro forma
effect to any such purchase or other acquisition, the Borrower shall have
availability under the Revolving Credit Facility (as defined in the First Lien
Credit Agreement) together with unrestricted cash on hand in an aggregate
amount of at least $10,000,000; and

 

(iv)          the Borrower shall have delivered to
the Administrative Agent and each Lender, at least five Business Days prior to
the date on which any such purchase or other acquisition is to be consummated,
a certificate of a Responsible Officer, in form and substance reasonably
satisfactory to the Administrative Agent, certifying that all of the
requirements set forth in this clause (h) have been satisfied or will be satisfied
on or prior to the consummation of such purchase or other acquisition;

 

(i)             Investments by the Borrower and its Subsidiaries in
Joint Ventures; provided that, immediately before
and after giving effect to such investment, no Default or Event of Default
shall have occurred and be continuing, and the aggregate amount of all
Investments pursuant to this clause (i) shall not exceed $1,250,000 in
the aggregate outstanding at any time;

 

(j)             Investments made or received as consideration received
in connection with a Disposition permitted by Section 7.05(j) not exceed
$1,250,000 in the aggregate outstanding at any time; and

 

(k)            Investments by Holdings and its Subsidiaries not
otherwise permitted under this Section 7.03 in an aggregate amount not
to exceed $12,000,000.

 

7.04.        Fundamental Changes. Merge, dissolve, liquidate,
consolidate with or into another Person, or Dispose of (whether in one
transaction or in a series of transactions) all or substantially all of its
assets (whether now owned or hereafter acquired) to or in favor of any Person,
except that, so long as no Default exists or would result therefrom:

 

(a)            any Subsidiary may merge with (i) the Borrower, provided
that the Borrower shall be the continuing or surviving Person, or (ii) any one
or more other Subsidiaries, provided that when any wholly owned
Subsidiary is merging with another Subsidiary, such wholly owned Subsidiary
shall be the continuing or surviving Person;

 

(b)            any Loan Party may Dispose of all or substantially all of
its assets (upon voluntary liquidation or otherwise) to the Borrower or to
another Loan Party (other than Holdings);

 

(c)            any Subsidiary that is not a Loan Party may dispose of
all or substantially all its assets (including any Disposition that is in the
nature of a liquidation) to (i) another Subsidiary that is not a Loan Party or
(ii) to a Loan Party;

 

(d)            the Borrower and its Subsidiaries may consummate the
Merger;

 

(e)            in connection with any Permitted Acquisition, any
Subsidiary of the Borrower may merge into or consolidate with any other Person
or permit any other Person to merge into or consolidate with it; provided
that (i) the Person surviving such merger shall be a

 

70

 

wholly owned Subsidiary of
the Borrower and (ii) in the case of any such merger to which any Loan Party
(other than the Borrower) is a party, such Loan Party is the surviving Person;
and

 

(f)            so long as no Default has occurred and is continuing or
would result therefrom, any Subsidiary of the Borrower may merge into or
consolidate with any other Person or permit any other Person to merge into or consolidate
with it; provided, however, that in each case, immediately after
giving effect thereto (i) in the case of any such merger to which the Borrower
is a party, the Borrower is the surviving corporation and (ii) in the case of
any such merger to which any Loan Party (other than the Borrower) is a party,
such Loan Party is the surviving corporation.

 

7.05.        Dispositions. Make any Disposition or enter into any agreement
to make any Disposition, except:

 

(a)            Dispositions of damaged, obsolete or worn out property or
property that is no longer useful or useable in its business, whether now owned
or hereafter acquired, in the ordinary course of business;

 

(b)            Dispositions of inventory, product, accounts receivable
or other assets or services in the ordinary course of business and the granting
of any option or other right to purchase, lease or otherwise acquire inventory,
products, equipment, accounts receivables or other assets or services in the
ordinary course of business;

 

(c)            Dispositions of equipment or real property to the extent
that (i) such property is exchanged for credit against the purchase price of
similar replacement property or (ii) the proceeds of such Disposition are
reasonably promptly applied to the purchase price of such replacement property;

 

(d)            Dispositions of property by any Subsidiary to the
Borrower or to a wholly owned Subsidiary; provided that if the
transferor of such property is a Guarantor, the transferee thereof must either
be the Borrower or a Guarantor;

 

(e)            Dispositions permitted by Section 7.04;

 

(f)             non-exclusive licenses of Owned Intellectual Property in
the ordinary course of business and substantially consistent with past
practice;

 

(g)            the sale or other disposition of Cash Equivalents;

 

(h)            Dispositions of accounts receivable in connection with
the compromise, settlement or collection thereof in the ordinary course of
business or in bankruptcy or similar proceedings;

 

(i)             any issuance or, or disposition in connection with,
directors’ qualifying shares or investments by foreign nationals mandated by
foreign law; and

 

71

 

(j)             other Dispositions by Holdings and its Subsidiaries for
at least 90% cash (provided that the following shall constitute cash for
purposes of this clause: (i) any liabilities (as shown on Holdings or its
Subsidiaries’ most recent balance sheet) of Holdings and its Subsidiaries
(other than contingent liabilities and subordinated Indebtedness) that are
assumed by the transferee in connection with such Disposition whereby Holdings
or such Subsidiary is released from further liability therefor and (ii) any
securities, notes or other obligations received by Holdings or any Subsidiary
from such transferee that are converted, sold or exchanged within 180 days of
their receipt by Holdings or such Subsidiary into cash (to the extent of the
cash received in that conversion)) and for fair value in an aggregate amount
not to exceed $18,000,000 in any fiscal year.

 

7.06.        Restricted Payments. Declare or make, directly or
indirectly, any Restricted Payment, except that:

 

(a)            each Subsidiary may make Restricted Payments to the
Borrower, any Subsidiaries of the Borrower that are Guarantors and any other
Person that owns a direct Equity Interest in such Subsidiary, ratably according
to their respective holdings of the type of Equity Interest in respect of which
such Restricted Payment is being made;

 

(b)            each Subsidiary of Holdings may declare and make dividend
payments or other distributions payable solely in the common stock or other
common Equity Interests of such Person;

 

(c)            so long as no Default shall have occurred and be
continuing or would result therefrom, the Borrower and each Subsidiary may
purchase, redeem or otherwise acquire its common Equity Interests with the
proceeds received from the substantially concurrent issue of new common Equity
Interests;

 

(d)            the Borrower may declare and pay cash dividends to
Holdings not to exceed an amount necessary to permit Holdings to pay (i)
reasonable and customary corporate and operating expenses (including reasonable
out-of-pocket expenses for legal, administrative and accounting services
provided by third parties, and compensation, benefits and other amounts payable
to officers and employees in connection with their employment in the ordinary
course of business and to board of director observers), (ii) franchise
fees or similar taxes and fees required to maintain Holdings’ corporate
existence, (iii) Holdings’ proportionate share of the tax liability of the
affiliated group of corporations that file consolidated Federal income tax
returns (or that file state and local income tax returns on a consolidated
basis) and (iv) so long as no Default shall have occurred and be continuing
below or would result therefrom, customary investment banking fees and other
amounts in connection with any Public Offering;

 

(e)            so long as no Event of Default shall have occurred and be
continuing or would result therefrom, Holdings and the Borrower may make
Restricted Payments for the purpose of enabling Holdings to purchase Equity
Interests (i) from present or former officers or employees of Holdings or any
of its Subsidiaries and (ii) from any Person that received shares of Holdings’
Equity Interests as all or a portion of the consideration in a Permitted
Acquisition; provided that the aggregate amount of payments under this
clause (e) after the date hereof (net of any proceeds received by Holdings and
contributed to Borrower after the date hereof in

 

72

 

connection with resales of
any Equity Interests so purchased) (A) shall not exceed (1) $8,400,000 for the
fiscal year ended December 31, 2007 and (2) $6,000,000 for each fiscal year
thereafter; provided, further that any unused amount in any
fiscal year may be used in the next succeeding fiscal year and (B) shall not
exceed $30,000,000 in the aggregate since the Closing Date; plus, in
each case, any amount received by Holdings from the sale of Equity Interests
(other than Disqualified Capital Stock) of Holdings from officers and employees
which amount is contributed to the Borrower);

 

(f)             in addition to clause (e) above, so long as no Event of
Default shall have occurred and be continuing or would result therefrom,
Holdings and the Borrower may make Restricted Payments not to exceed $3,600,000
in any fiscal year of Holdings for the purpose of enabling Holdings to purchase
Equity Interests (i) from present or former officers or employees of Holdings
or any of its Subsidiaries and (ii) from any Person that received shares of
Holdings’ Equity Interests as all or a portion of the consideration in a
Permitted Acquisition; provided that after giving effect to such
Restricted Payment on a pro forma basis, Holdings’ Consolidated Leverage Ratio
is not greater than 4.75:1.00;

 

(g)            so long as no Default shall have occurred and be
continuing or would result therefrom, Holdings, the Borrower and each
Subsidiary may (A) declare and make dividend payments or other distributions
and (B) make Restricted Payments for the purpose of enabling Holdings to
purchase Equity Interests (i) from present or former officers or employees of
Holdings or any of its Subsidiaries and (ii) from any Person that received
shares of Holdings’ Equity Interests as all or a portion of the consideration
in a Permitted Acquisition, in a collective amount not to exceed 50% of Excess
Cash Flow (less the amount of any expenditures excluded from the definition of “Capital
Expenditures” pursuant to clause (a) of the proviso in such definition) in the
aggregate and for the period beginning with the fiscal quarter in which
Holdings’ Consolidated Leverage Ratio is less than 6.25:1.00; provided that, in
the case of clause (A), after giving effect to such dividend or distribution on
a pro forma basis, Holdings’ Consolidated Leverage Ratio is not greater than
3.75:1.00, and in the case of clause (B), after giving effect to such purchase
of Equity Interests on a pro forma basis, Holdings’ Consolidated Leverage Ratio
is not greater than 4.75:1.00; and

 

(h)            in addition to clause (g) above but without duplication
of clause (c) above, so long as no Event of Default shall have occurred and be
continuing or would result therefrom, Holdings, the Borrower and each
Subsidiary may declare and make dividend payments or other distributions in an
amount not to exceed 50% of the net cash proceeds received by the Borrower from
Holdings’ initial Public Offering; provided that, in each case, after giving
effect to such dividend or distribution on a pro forma basis, Holdings’
Consolidated Leverage Ratio is not greater than 3.75:1.00.

 

7.07.        Change in Nature of Business. Engage in any material
line of business substantially different from those lines of business conducted
by the Borrower and its Subsidiaries on the date hereof or any business
substantially related or incidental thereto.

 

7.08.        Transactions with Affiliates. Enter into any
transaction of any kind with any Affiliate of the Borrower, whether or not in
the ordinary course of business, other than on fair and reasonable terms
substantially as favorable to the Borrower or such Subsidiary as would

 

73

 

be obtainable by the
Borrower or such Subsidiary at the time in a comparable arm’s length
transaction with a Person other than an Affiliate; provided that the
foregoing restriction shall not apply to:

 

(a)           transactions between or among the Loan Parties (other than
Holdings) or any Person that will become a Loan Party as a result of such
transaction;

 

(b)           the payment of fees and expenses in connection with the
consummation of the Merger and the other Transactions;

 

(c)            contracts or agreements and transactions with customers,
clients, suppliers or purchasers and sellers of goods or services, in each
case, in the ordinary course of business and otherwise not prohibited by the
terms of this Agreement, which are fair to Holdings or its Subsidiaries or are
on terms, taken as a whole, at least as favorable as might reasonably have been
obtained at that time from a Person who is not an Affiliate of the Borrower;

 

(d)           employment and severance arrangements between Holdings and
its Subsidiaries and their respective officers and employees in the ordinary
course of business or in connection with the Merger;

 

(e)            the payment of customary fees and reasonable
out-of-pocket costs to, and indemnities provided on behalf of, directors,
officers, employees and consultants of Holdings and its Subsidiaries in the
ordinary course of business, as determined in good faith by the board of
directors of the Borrower or senior management thereof;

 

(f)            customary shareholder and registration rights agreements
among Holdings and its shareholders; and

 

(g)            Restricted Payments permitted under Section 7.06.

 

7.09.        Burdensome Agreements. Enter into or permit to exist
any Contractual Obligation (other than this Agreement or any other Loan
Document) that limits the ability of any Subsidiary to make Restricted Payments
to the Borrower or any Guarantor or to otherwise transfer property to or invest
in the Borrower or any Guarantor, provided that the foregoing shall not
be violated by reason of: (A) the Loan Documents, (B) any agreement or
instrument evidencing any Indebtedness permitted to be incurred under Sections
7.02(b), 7.02(e), 7.02(g), 7.02(h) or 7.02(i)
or any Indebtedness issued, assumed or incurred to refinance any of the
foregoing, (C) any agreement in effect as of the date hereof, (D) any agreement
in effect at the time a Person first became a Subsidiary of the Borrower so long
as such agreement has not been entered into solely in contemplation of such
Person becoming a Subsidiary, (E) applicable law, rule, regulation or order
including of any regulatory body, (F) customary restrictions on subletting,
assignment or transfer of any property or asset contained in a lease, license,
conveyance or contract or similar property or asset, (G) any Lien permitted
under the terms of Section 7.01, (H) customary restrictions in
Contractual Obligations entered into in the ordinary course of business; provided
that any such limitations contained therein relate only to such agreements and
that any such limitations, individually or in the aggregate, shall not
materially affect any Loan Party’s ability to pay its Obligations under the
Loan Documents, (I) restrictions

 

74

 

(1) arising or agreed to in
the ordinary course of business, not relating to any Indebtedness, and that do
not, individually or in the aggregate detract from the value of property or
assets of Holdings or any Subsidiary thereof, (2) existing under, by reason of,
or with respect to, any agreement for the sale or other disposition of all or
substantially all of the Equity Interests in, or property and assets of, a
Subsidiary that restricts distributions by the Subsidiary pending such sale or
other disposition, (3) that are or were created by virtue of any transfer of,
agreement to transfer or option or right with respect to any property, assets
or Equity Interests not otherwise prohibited under this Agreement or (4)
existing under restrictions on cash or other deposits or net worth tests
imposed by customers or required by insurance, surety or bonding companies, (J)
encumbrances on the assets or Equity Interests of CFCs pursuant to Indebtedness
of CFCs permitted to be incurred under this Agreement; provided that (1)
such encumbrances are ordinary and customary with respect to the type of
Indebtedness being incurred and (2) such encumbrances will not affect the
Borrower’s ability to make payments of principal or interest on the Loans, as
determined in good faith by the board of directors of the Borrower and (K)
provisions in joint venture agreements, partnership agreements, limited
liability organizational documents and other similar agreements and documents
that restrict (1) the transfer of ownership interests in such entity that was
not entered into solely in contemplation of such Person becoming a Subsidiary
of the Borrower or (2) the ability of the Borrower or any Subsidiary to create,
incur, assume or suffer to exist Liens on property of such Person.

 

7.10.        Use of Proceeds. Use the proceeds of the Loans,
whether directly or indirectly, and whether immediately, incidentally or
ultimately, to purchase or carry margin stock (within the meaning of Regulation
U of the FRB) or to extend credit to others for the purpose of purchasing or
carrying margin stock or to refund indebtedness originally incurred for such
purpose.

 

7.11.        Consolidated Leverage Ratio. Permit the Consolidated
Leverage Ratio at any time during any period of four fiscal quarters of
Holdings set forth below to be greater than the ratio set forth below opposite
such period:

 

	
   

  	
   

  	
  Maximum

  	
   

  
	
   

  	
   

  	
  Consolidated

  	
   

  
	
  Four
  Fiscal Quarters Ending

  	
   

  	
  Leverage Ratio

  	
   

  
	
  June 30, 2007

  	
   

  	
  8.50:1.00

  	
   

  
	
  September 30, 2007

  	
   

  	
  8.00:1.00 

  	
   

  
	
  December 31, 2007

  	
   

  	
  7.25:1.00

  	
   

  
	
  March 31, 2008

  	
   

  	
  7.00:1.00

  	
   

  
	
  June 30, 2008

  	
   

  	
  6.50:1.00

  	
   

  
	
  September 30, 2008

  	
   

  	
  6.00:1.00 

  	
   

  
	
  December 31, 2008

  	
   

  	
  5.50:1.00

  	
   

  
	
  March 3l, 2009 

  	
   

  	
  5.50:1.00

  	
   

  
	
  June 30, 2009 

  	
   

  	
  5.00:1.00

  	
   

  
	
  September 30, 2009

  	
   

  	
  4.75:1.00 

  	
   

  
	
  December 31, 2009

  	
   

  	
  4.50:1.00

  	
   

  
	
  March 31, 2010

  	
   

  	
  4.25:1.00

  	
   

  
	
  June 30, 2010

  	
   

  	
  4.00:1.00

  	
   

  

 

75

 

	
  September 30, 2010

  	
   

  	
  3.75:1.00

  	
   

  
	
  December 31, 2010 and thereafter

  	
   

  	
  3.50:1.00

  	
   

  

 

7.12.       Capital Expenditures. Make or become legally obligated
to make any Capital Expenditure, except for Capital Expenditures in the
ordinary course of business not exceeding, in the aggregate for Holdings and
its Subsidiaries during each fiscal year set forth below, the amount set forth
opposite such fiscal year:

 

	
  Fiscal Year

  	
   

  	
  Amount

  	
   

  
	
  2007

  	
   

  	
  $

  	
  14,000,000

  	
   

  
	
  2008

  	
   

  	
  $

  	
  14,000,000

  	
   

  
	
  2009

  	
   

  	
  $

  	
  15,000,000

  	
   

  
	
  2010

  	
   

  	
  $

  	
  16,500,000

  	
   

  
	
  2011

  	
   

  	
  $

  	
  18,500,000

  	
   

  
	
  2012

  	
   

  	
  $

  	
  18,500,000

  	
   

  
	
  2013

  	
   

  	
  $

  	
  20,000,000

  	
   

  

 

; provided, however,
that so long as no Default has occurred and is continuing or would result from
such expenditure, any portion of any amount set forth above, if not expended in
the fiscal year for which it is permitted above, may be carried over for
expenditure in the next following fiscal year; and provided, further,
if any such amount is so carried over, it will be deemed used in the applicable
subsequent fiscal year before the amount set forth opposite such fiscal year
above.

 

7.13.        Amendments of Organization Documents. Amend any of its
Organization Documents other than any changes which are not materially adverse
to the Administrative Agent and the Lenders.

 

7.14.        Accounting Changes. Make any change in (a) accounting
policies or reporting practices, except as required or permitted by GAAP or the
Financial Accounting Standards Board and as otherwise not materially adverse to
the Lenders, or (b) fiscal year.

 

7.15.        Prepayments, Etc. of Indebtedness. Prepay, redeem,
purchase, defease or otherwise satisfy prior to the scheduled maturity thereof
in any manner, or make any payment in violation of any subordination terms of,
any Indebtedness, except (a) the prepayment of the Loans in accordance with the
terms of this Agreement and (b) regularly scheduled or required repayments or
redemptions of Indebtedness set forth in Schedule 7.02 and refinancings
and refundings of such Indebtedness in compliance with Sections7.02(e)
and (c) any prepayment of Indebtedness under the First Lien Credit Agreement.

 

7.16.       Amendment, Etc. of Indebtedness. (a) amend, modify or
change in any manner any term or condition of any Indebtedness set forth in Schedule
7.02, except for any refinancing, refunding, renewal or extension thereof
permitted by Section 7.02(e) or (b) amend, modify or change in any
manner any term or condition of the First Lien Loan Documents if the effect
thereof is to (i) increase the aggregate principal amount of Indebtedness under
the First Lien Credit Agreement above the amount specified in Section
7.02(b), (ii) increase the interest rate provided in the First Lien Loan
Documents by more than two hundred (200) basis points

 

76

 

except in connection with
(A) the imposition of a default rate of interest in accordance with the terms
of the Senior Loan Documents or (B) the imposition of market interest rates in
respect of any refinancing, or (iii) add restrictions on the ability of the
Borrower to repay the Loans (including any extension of the maturity) in
addition to those set forth in the First Lien Loan Documents in effect on the
date hereof (provided that any modification of any existing covenants or
defaults, which has the effect of making them more restrictive, shall not be
deemed, in and of itself, to be an additional restriction on the payment of the
Loans).

 

7.17.        Holding Company. In the case of Holdings, engage in
any business or activity other than (a) the ownership of all outstanding Equity
Interests in the Borrower, (b) maintaining its corporate existence, (c)
participating in tax, accounting and other administrative activities as the
parent of the consolidated group of companies, including the Loan Parties, (d)
the execution and delivery of the Loan Documents to which it is a party and the
performance of its obligations thereunder, (e) any public offering of its
common stock or any other issuance or registration of its Equity Interests or
stock appreciation rights, (f) any transaction that Holdings is permitted to
enter into or consummate under this Article VII, (g) incurring fees,
costs and expenses relating to overhead and general operating including
professional fees for legal, tax and accounting issues, (h) providing
indemnification to officers and directors, (i) activities contemplated by Section
7.06 and (j) activities incidental to the businesses or activities
described in clauses (a) through (h) of this Section 7.17.

 

7.18.        General Partner. No Loan Party shall become a general
partner, either directly or indirectly in any partnership (other than through a
separate Subsidiary of Holdings in compliance with Sections 7.02 and 7.03).

 

ARTICLE
VIII

EVENTS OF DEFAULT AND REMEDIES

 

8.01.        Events of Default. Any of the following shall
constitute an Event of Default:

 

(a)            Non-Payment. The Borrower or any other Loan Party
fails to (i) pay when and as required to be paid herein, any amount of
principal of any Loan, or (ii) pay within three days after the same becomes
due, any interest on any Loan or any fee due hereunder, or (iii) pay within
five days after the same becomes due, any other amount payable hereunder or
under any other Loan Document; or

 

(b)           Specific Covenants. The Borrower fails to perform
or observe any term, covenant or agreement contained in any of Sections 6.01,
6.02(a), 6.02(b), 6.03(a), 6.03(b), 6.10, 6.11,
6.12, 6.14, 6.17 or Article VII; or

 

(c)            Other Defaults. Any Loan Party fails to perform or
observe any other covenant or agreement (not specified in Section 8.01(a)
or (b) above) contained in any Loan Document on its part to be performed
or observed and such failure continues for 60 days after the earlier of the
date on which (i) any Responsible Officer of a Loan Party becomes aware of such
failure or (ii) written notice thereof shall have been given to the
Borrower by the Administrative Agent or the Required Lenders; or

 

77

 

(d)            Representations and Warranties. Any
representation, warranty, certification or statement of fact made or deemed
made by or on behalf of the Borrower or any other Loan Party herein, in any
other Loan Document, or in any document delivered in connection herewith or
therewith shall be incorrect or misleading, in the case of any representation,
warranty, certification or statement qualified by materially or a Material
Adverse Effect, when made or deemed made and otherwise in any material respect
when made or deemed made; provided that (i) if such Loan Party was not
aware that such representation or warranty was false or incorrect at the time
such representation or warranty was made, (ii) the fact, event or circumstance
resulting in such false or incorrect representation or warranty is capable of
being cured, corrected or otherwise remedied without any adverse consequence to
the Lenders, and (iii) such fact, event or circumstance resulting in such false
or incorrect representation or warranty shall have been cured, corrected or
otherwise remedied without any adverse consequence to the Lenders within 30
days from the date a Responsible Officer of the Borrower or any Loan Party obtains
actual knowledge thereof such that such representation or warranty (as cured,
corrected or remedied) would not reasonably be expected to result in a Material
Adverse Effect, then such false or incorrect representation or warranty shall
not constitute a Default or an Event of Default for purposes of the Loan
Documents; or

 

(e)            Cross-Default. (i) Any Loan Party or any
Significant Subsidiary or one or more Subsidiaries that in the aggregate would
constitute a Significant Subsidiary thereof (A) fails to make any payment when
due (whether by scheduled maturity, required prepayment, acceleration, demand,
or otherwise) in respect of any Indebtedness or Guarantee (other than (x)
Indebtedness hereunder, (y) Indebtedness under the First Lien Loan Documents
and (z) Indebtedness under Swap Contracts) having an aggregate principal
amount(including undrawn committed or available amounts and including amounts
owing to all creditors under any combined or syndicated credit arrangement) of
more than the Threshold Amount and such failure shall continue after the
applicable grace period, if any, specified in the agreement or instrument
relating to such Indebtedness, or (B) fails to observe or perform any other
agreement or condition relating to any such Indebtedness or Guarantee or
contained in any instrument or agreement evidencing, securing or relating
thereto, or any other event occurs, the effect of which default or other event
is to cause, or to permit the holder or holders of such Indebtedness or the
beneficiary or beneficiaries of such Guarantee (or a trustee or agent on behalf
of such holder or holders or beneficiary or beneficiaries) to cause, with the
giving of notice if required, such Indebtedness to be demanded or to become due
or to be repurchased, prepaid, defeased or redeemed (automatically or
otherwise), or an offer to repurchase, prepay, defease or redeem such
Indebtedness to be made, prior to its stated maturity, or such Guarantee to
become payable or cash collateral in respect thereof to be demanded; or (ii) there
occurs under any Swap Contract an Early Termination Date (as defined in such
Swap Contract) resulting from (A) any event of default under such Swap Contract
as to which a Loan Party or any Subsidiary thereof is the Defaulting Party (as
defined in such Swap Contract) or (B) any Termination Event (as so defined)
under such Swap Contract as to which a Loan Party or any Subsidiary thereof is
an Affected Party (as so defined) and, in either event, the Swap Termination
Value owed and not paid on the due date by such Loan Party or such Subsidiary
as a result thereof is greater than the Threshold Amount; or (iii) any Loan
Party or any Significant Subsidiary fails to make payment when due (whether by
scheduled maturity, required prepayment, acceleration, demand or otherwise)
after lapse of all applicable grace periods of any principal of or interest on
any

 

78

 

Indebtedness outstanding, or
fees or other amounts owing, under the First Lien Loan Documents, and in each
case such failure shall continue for a period of forty-five (45) consecutive
days;

 

(f)            Insolvency Proceedings. Etc. Any Loan Party or any
Significant Subsidiary or one or more Subsidiaries that in the aggregate would
constitute a Significant Subsidiary thereof institutes or consents to the
institution of any proceeding under any Debtor Relief Law, or makes an
assignment for the benefit of creditors; or applies for or consents to the
appointment of any receiver, trustee, custodian, conservator, liquidator,
rehabilitator or similar officer for it or for all or any material part of its
property; or any receiver, trustee, custodian, conservator, liquidator,
rehabilitator or similar officer is appointed without the application or
consent of such Person and the appointment continues undischarged or unstayed
for 60 calendar days; or any proceeding under any Debtor Relief Law relating to
any such Person or to all or any material part of its property is instituted
without the consent of such Person and continues undismissed or unstayed for 60
calendar days, or an order for relief is entered in any such proceeding; or

 

(g)            Inability to Pay Debts; Attachment. (i) Any Loan
Party or any Significant Subsidiary or one or more Subsidiaries that in the
aggregate would constitute a Significant Subsidiary thereof becomes unable or
admits in writing its inability or fails generally to pay its debts as they
become due, or (ii) any writ or warrant of attachment or execution or similar
process is issued or levied against all or any material part of the property of
any such Person and is not released, vacated or fully bonded within 30 days
after its issue or levy; or

 

(h)           Judgments. There is entered against any Loan Party
or any Significant Subsidiary or one or more Subsidiaries that in the aggregate
would constitute a Significant Subsidiary thereof (i) one or more final
judgments or orders for the payment of money in an aggregate amount (as to all
such judgments and orders) exceeding the Threshold Amount (to the extent not
covered by independent third-party insurance as to which the insurer is rated
at least “A” by A.M. Best Company, has been notified of the potential claim and
does not dispute coverage), or (ii) any one or more non-monetary final
judgments that have, or would reasonably be expected to have, individually or
in the aggregate, a Material Adverse Effect and, in either case, (A)
enforcement proceedings are commenced by any creditor upon such judgment or
order, or (B) there is a period of 10 consecutive days during which a stay of
enforcement of such judgment, by reason of a pending appeal or otherwise, is
not in effect; or

 

(i)             ERISA. (i) An ERISA Event occurs with respect to
a Pension Plan or Multiemployer Plan which has resulted or would reasonably be
expected to result in liability of the Borrower under Title IV of ERISA to the
Pension Plan, Multiemployer Plan or the PBGC in an aggregate, amount that would
reasonably be expected to result in an Material Adverse Effect or the
imposition of a Lien or security interest on any assets of any Loan Party, or
(ii) the Borrower or any ERISA Affiliate fails to pay when due, after the
expiration of any applicable grace period, any installment payment with respect
to its withdrawal liability under Section 4201 of ERISA under a Multiemployer Plan
in an aggregate amount that would reasonably be expected to result in an
Material Adverse Effect or the imposition of a Lien or security interest on any
assets of any Loan Party; or

 

79

 

(j)            Invalidity of Loan Documents. Any provision of any
Loan Document, at any time after its execution and delivery and for any reason
other than as expressly permitted hereunder or thereunder or satisfaction in
full of all the Obligations, ceases to be in full force and effect (except as
the result of any act or omission of the Administrative Agent or any Secured
Party); or any Loan Party contests in any manner the validity or enforceability
of any provision of any Loan Document; or any Loan Party denies that it has any
or further liability or obligation under any provision of any Loan Document, or
purports to revoke, terminate or rescind any provision of any Loan Document; or

 

(k)           Change of Control. There occurs any Change of
Control; or

 

(1)            Collateral Documents. Any Collateral Document
after delivery thereof pursuant to Section 4.01 or 6.12 shall for
any reason (other than pursuant to the terms thereof or as a result of any act
or omission of the Administrative Agent or Secured Party) cease to create a
valid and perfected second priority Lien (subject to Liens permitted by Section
7.01) on the Collateral purported to be covered thereby; or

 

Notwithstanding anything to
the contrary contained in this Section 8.01, in the event that Holdings
fails to comply with the requirements of the covenant contained in Section 7.11,
until the 10th day subsequent to delivery of the related Compliance
Certificate, Sponsor shall have the right, but in any event no more than two
(2) times in any four consecutive fiscal -quarter period, to make cash
contributions to the capital of the Borrower in an amount equal to the amount
necessary to cure the relevant failure to comply with the covenant contained in
Section 7.11 and to contribute any such cash to the common equity
capital of the Borrower (collectively, the “Cure Right”), and upon the
receipt by the Borrower of such cash (the “Cure Amount”) pursuant to the
exercise by Sponsor of such Cure Right such covenant shall be recalculated
giving effect to the following pro  forma adjustments:

 

(A)          Consolidated Adjusted EBITDA shall be
increased, in accordance with the definition thereof, solely for the purpose of
measuring the relevant covenant and not for any other purpose under this
Agreement, by an amount equal to the Cure Amount;

 

(B)          if, after giving effect to the
foregoing recalculations, Holdings shall then be in compliance with the
requirements of the covenant contained in Section 7.11, Holdings shall
be deemed to have satisfied the requirements of the covenants contained in Section
7.11 as of the relevant date of determination with the same effect as
though there had been no failure to comply therewith at such date, and the
applicable breach or default of the covenant contained in Section 7.11
which had occurred shall be deemed cured for all purposes of this Agreement and
the other Loan Documents; and

 

to the extent that the Cure
Amount proceeds are used to repay Indebtedness, such Indebtedness shall not be
deemed to have been repaid for purposes of calculating the Consolidated
Leverage Ratio for the period with respect to which such Compliance Certificate
applies.

 

80

 

8.02.       Remedies upon Event of Default. If any Event of Default
occurs and is continuing, the Administrative Agent shall, at the request of, or
may, with the consent of, the Required Lenders, take any or all of the
following actions:

 

(a)           declare the commitment of each Lender to make Loans to be
terminated, whereupon such commitments and obligation shall be terminated; and

 

(b)            declare the unpaid principal amount of all outstanding
Loans, all interest accrued and unpaid thereon, and all other amounts owing or
payable hereunder or under any other Loan Document to be immediately due and
payable, without presentment, demand, protest or other notice of any kind, all
of which are hereby expressly waived by the Borrower;

 

provided, however, that upon the occurrence of
an actual or deemed entry of an order for relief with respect to the Borrower
under the Bankruptcy Code of the United States, the obligation of each Lender
to make Loans shall automatically terminate, the unpaid principal amount of all
outstanding Loans and all interest and other amounts as aforesaid shall
automatically become due and payable, in each case without further act of the
Administrative Agent or any Lender.

 

8.03.        Application of Funds. After the exercise of remedies
provided for in Section 8.02 (or after the Loans have automatically
become immediately due and payable), any amounts received on account of the
Obligations shall be applied by the Administrative Agent in the following
order:

 

First, to payment of that portion of the
Obligations constituting fees, indemnities, expenses and other amounts
(including fees, charges and disbursements of counsel to the Administrative
Agent and amounts payable under Article III) payable to the
Administrative Agent in its capacity as such;

 

Second, to payment of that portion of the
Obligations constituting fees, indemnities and other amounts (other than
principal and interest) payable to the Lenders (including fees, charges and
disbursements of counsel to the respective Lenders and including fees and time
charges for attorneys who may be employees of any Lender) and amounts payable
under Article III, ratably among them in proportion to the
respective amounts described in this clause Second payable to them;

 

Third, to payment of that portion of the
Obligations constituting accrued and unpaid interest on the Loans, unpaid
principal of the Loans ratably among the Lenders in proportion to the
respective amounts described in this clause Third payable to them; and

 

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

 

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ARTICLE
IX

ADMINISTRATIVE AGENT

 

9.01.       Appointment and Authority.

 

(a)           Each of the Lenders hereby irrevocably appoints Bank of
America to act on its behalf as the Administrative Agent hereunder and under
the other Loan Documents and authorizes the Administrative Agent to take such
actions on its behalf and to exercise such powers as are delegated to the
Administrative Agent by the terms hereof or thereof, together with such actions
and powers as are reasonably incidental thereto. The provisions of this Article
are solely for the benefit of the Administrative Agent and the Lenders, and
neither the Borrower nor any other Loan Party shall have rights as a third
party beneficiary of any of such provisions.

 

(b)            The Administrative Agent shall also act as the “collateral
agent” under the Loan Documents, and each of the Lenders hereby irrevocably
appoints and authorizes the Administrative Agent to act as the agent of such
Lender for purposes of acquiring, holding and enforcing any and all Liens on
Collateral granted by any of the Loan Parties to secure any of the Obligations,
together with such powers and discretion as are reasonably incidental thereto.
In this connection, the Administrative Agent, as “collateral agent” and any
co-agents, sub-agents and attorneys-in-fact appointed by the Administrative
Agent pursuant to Section 9.05 for purposes of holding or enforcing
any Lien on the Collateral (or any portion thereof) granted under the
Collateral Documents, or for exercising any rights and remedies thereunder at
the direction of the Administrative Agent), shall be entitled to the benefits
of all provisions of this Article IX and Article XI (including Section
11 .04(c), as though such co-agents, sub-agents and attorneys-in-fact were
the “collateral agent” under the Loan Documents) as if set forth in full herein
with respect thereto.

 

9.02.        Rights as a Lender. The Person serving as the
Administrative Agent hereunder shall have the same rights and powers in its
capacity as a Lender as any other Lender and may exercise the same as though it
were not the Administrative Agent and the term “Lender” or “Lenders” shall,
unless otherwise expressly indicated or unless the context otherwise requires,
include the Person serving as the Administrative Agent hereunder in its
individual capacity. Such Person and its Affiliates may accept deposits from,
lend money to, act as the financial advisor or in any other advisory capacity
for and generally engage in any kind of business with the Borrower or any
Subsidiary or other Affiliate thereof as if such Person were not the
Administrative Agent hereunder and without any duty to account therefor to the
Lenders.

 

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

 

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

 

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

 

82

 

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

 

The Administrative Agent
shall not be liable for any action taken or not taken by it (i) with the
consent or at the request of the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary, or as the Administrative Agent
shall believe in good faith shall be necessary, under the circumstances as
provided in Sections 11.01 and 8.02) or (ii) in the absence of
its own bad faith, gross negligence or willful misconduct. The Administrative
Agent shall be deemed not to have knowledge of any Default unless and until
notice describing such Default is given to the Administrative Agent by the
Borrower or a Lender.

 

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

 

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

 

9.05.       Delegation of Duties. The Administrative Agent may
perform any and all of its duties and exercise its rights and powers hereunder
or under any other Loan Document by or through any one or more sub-agents
appointed by the Administrative Agent. The Administrative Agent and any such
sub-agent may perform any and all of its duties and exercise

 

83

 

its rights and powers by or
through their respective Related Parties. The exculpatory provisions of this
Article shall apply to any such sub-agent and to the Related Parties of the
Administrative Agent and any such sub-agent, and shall apply to their
respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Administrative Agent.

 

9.06.       Resignation of Administrative Agent. The Administrative
Agent may at any time give notice of its resignation to the Lenders and the
Borrower. Upon receipt of any such notice of resignation, the Required Lenders
shall have the right, with the consent of Borrower (not to be unreasonably
withheld), to appoint a successor, which shall be a bank with an office in the
United States, or an Affiliate of any such bank with an office in the United
States. If no such successor shall have been so appointed by the Required Lenders
and shall have accepted such appointment within 30 days after the retiring
Administrative Agent gives notice of its resignation, then the retiring
Administrative Agent may on behalf of the Lenders, with the consent of Borrower
(not to be unreasonably withheld) appoint a successor Administrative Agent
meeting the qualifications set forth above; provided that if the
Administrative Agent shall notify the Borrower and the Lenders that no
qualifying Person has accepted such appointment, then such resignation shall
nonetheless become effective in accordance with such notice and (a) the
retiring Administrative Agent shall be discharged from its duties and
obligations hereunder and under the other Loan Documents (except that in the
case of any collateral security held by the Administrative Agent on behalf of
the Lenders under any of the Loan Documents, the retiring Administrative Agent
shall continue to hold such collateral security until such time as a successor
Administrative Agent is appointed) and (b) all payments, communications and
determinations provided to be made by, to or through the Administrative Agent
shall instead be made by or to each Lender directly, until such time as the
Required Lenders appoint a successor Administrative Agent as provided for above
in this Section. Upon the acceptance of a successor’s appointment as
Administrative Agent hereunder, such successor shall succeed to and become
vested with all of the rights, powers, privileges and duties of the retiring
(or retired) Administrative Agent, and the retiring Administrative Agent shall
be discharged from all of its duties and obligations hereunder or under the
other Loan Documents (if not already discharged therefrom as provided above in
this Section). The fees payable by the Borrower to a successor Administrative
Agent shall be the same as those payable to its predecessor unless otherwise
agreed between the Borrower and such successor. After the retiring
Administrative Agent’s resignation hereunder and under the other Loan
Documents, the provisions of this Article and Section 11.04 shall
continue in effect for the benefit of such retiring Administrative Agent, its
sub-agents and their respective Related Parties in respect of any actions taken
or omitted to be taken by any of them while the retiring Administrative Agent
was acting as Administrative Agent.

 

9.07.        Non-Reliance on Administrative Agent and Other Lenders.
Each Lender acknowledges that it has, independently and without reliance upon
the Administrative Agent or any other Lender or any of their Related Parties
and based on such documents and information as it has deemed appropriate, made
its own credit analysis and decision to enter into this Agreement. Each Lender
also acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender or any of their Related Parties and
based on such documents and information as it shall from time to time deem
appropriate, continue to make

 

84

 

its own decisions in taking
or not taking action under or based upon this Agreement, any other Loan
Document or any related agreement or any document furnished hereunder or
thereunder.

 

9.08.       No Other Duties, Etc. Anything herein to the contrary
notwithstanding, none of the Bookrunners or Arrangers listed on the cover page
hereof shall have any powers, duties or responsibilities under this Agreement
or any of the other Loan Documents, except in its capacity, as applicable, as
the Administrative Agent or a Lender hereunder.

 

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

 

(a)            to file and prove a claim for the whole amount of the
principal and interest owing and unpaid in respect of the Loans and all other
Obligations that are owing and unpaid and to file such other documents as may
be necessary or advisable in order to have the claims of the Lenders and the
Administrative Agent (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Lenders and the Administrative Agent
and their respective agents and counsel and all other amounts due the Lenders
and the Administrative Agent under Sections 2.09 and 11.04)
allowed in such judicial proceeding; and

 

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

 

and any custodian, receiver,
assignee, trustee, liquidator, sequestrator or other similar official in any
such judicial proceeding is hereby authorized by each Lender to make such
payments to the Administrative Agent and, if the Administrative Agent shall consent
to the making of such payments directly to the Lenders, to pay to the
Administrative Agent any amount due for the reasonable compensation, expenses,
disbursements and advances of the Administrative Agent and its agents and
counsel, and any other amounts due the Administrative Agent under Sections
2.09 and 11.04.

 

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

 

9.10.       Collateral and Guaranty Matters. The Lenders
irrevocably, authorize the Administrative Agent, at its option and in its
discretion,

 

(a)           to release any Lien on any property granted to or held by
the Administrative Agent under any Loan Document (i) upon payment in full of
all Obligations (other than contingent indemnification obligations), (ii) that
is sold or to be sold as part of or in

 

85

 

connection with any sale
permitted hereunder or under any other Loan Document, or (iii) if approved,
authorized or ratified in writing in accordance with Section 11.01;

 

(b)           to release any Guarantor from its obligations under the
Guaranty if such Person ceases to be a Subsidiary or is designated an
Unrestricted Subsidiary as a result of a transaction permitted hereunder; and

 

(c)            to subordinate any Lien on any property granted to or
held by the Administrative Agent under any Loan Document to the holder of any
Lien on such property that is permitted by Section 7.01(i).

 

Upon request by the
Administrative Agent at any time, the Required Lenders will confirm in writing
the Administrative Agent’s authority to release or subordinate its interest in
particular types or items of property, or to release any Guarantor from its
obligations under the Guaranty pursuant to this Section 9.10. In each
case as specified in this Section 9.10, the Administrative Agent will,
at the Borrower’s expense, execute and deliver to the applicable Loan Party
such documents as such Loan Party may reasonably request to evidence the
release of such item of Collateral from the assignment and security interest
granted under the Collateral Documents or to subordinate its interest in such
item, or to release such Guarantor from its obligations under the Guaranty, in
each case in accordance with the terms of the Loan Documents and this Section
9.10.

 

ARTICLE
X

CONTINUING GUARANTY

 

10.01.     Guaranty. Holdings hereby absolutely
and unconditionally guarantees, as a guaranty of payment and performance and
not merely as a guaranty of collection, prompt payment when due, whether at
stated maturity, by required prepayment, upon acceleration, demand or
otherwise, and at all times thereafter, of any and all of the Obligations,
whether for principal, interest, premiums, fees, indemnities, damages, costs,
expenses or otherwise, of the Borrower to the Secured Parties, arising
hereunder and under the other Loan Documents (including all renewals,
extensions, amendments, refinancings and other modifications thereof and all
costs, attorneys’ fees and expenses incurred by the Secured Parties in
connection with the collection or enforcement thereof). The Administrative
Agent’s books and records showing the amount of the Obligations shall be
admissible in evidence in any action or proceeding, and shall be binding upon
Holdings, and conclusive for the purpose of establishing the amount of the Obligations.
This Guaranty shall not be affected by the genuineness, validity, regularity or
enforceability of the Obligations or any instrument or agreement evidencing any
Obligations, or by the existence, validity, enforceability, perfection,
non-perfection or extent of any collateral therefor, or by any fact or
circumstance relating to the Obligations which might otherwise constitute a
defense to the obligations of Holdings under this Guaranty, and Holdings hereby
irrevocably waives any defenses it may now have or hereafter acquire in any way
relating to any or all of the foregoing.

 

10.02.     Rights of Lenders. Holdings consents
and agrees that the Secured Parties may, at any time and from time to time,
without notice or demand, and without affecting the enforceability or
continuing effectiveness hereof: (a) amend, extend, renew, compromise,

 

86

 

discharge, accelerate or
otherwise change the time for payment or the terms of the Obligations or any
part thereof; (b) take, hold, exchange, enforce, waive, release, fail to
perfect, sell, or otherwise dispose of any security for the payment of this
Guaranty or any Obligations; (c) apply such security and direct the order or
manner of sale thereof as the Administrative Agent and the Lenders in their
sole discretion may determine; and (d) release or substitute one or more of any
endorsers or other guarantors of any of the Obligations. Without limiting the
generality of the foregoing, Holdings consents to the taking of, or failure to
take, any action which might in any manner or to any extent vary the risks of
Holdings under this Guaranty or which, but for this provision, might operate as
a discharge of Holdings.

 

10.03.     Certain Waivers. Holdings waives (a)
any defense arising by reason of any disability or other defense of the
Borrower or any other guarantor, or the cessation from any cause whatsoever
(including any act or omission of any Secured Party) of the liability of the Borrower;
(b) any defense based on any claim that Holdings’ obligations exceed or are
more burdensome than those of the Borrower; (c) the benefit of any statute of
limitations affecting Holdings’ liability hereunder; (d) any right to proceed
against the Borrower, proceed against or exhaust any security for the
Obligations, or pursue any other remedy in the power of any Secured Party
whatsoever; (e) any benefit of and any right to participate in any security now
or hereafter held by any Secured Party; and (f) to the fullest extent permitted
by law, any and all other defenses or benefits that may be derived from or
afforded by applicable law limiting the liability of or exonerating guarantors
or sureties. Holdings expressly waives all setoffs and counterclaims and all
presentments, demands for payment or performance, notices of nonpayment or
nonperformance, protests, notices of protest, notices of dishonor and all other
notices or demands of any kind or nature whatsoever with respect to the
Obligations, and all notices of acceptance of this Guaranty or of the
existence, creation or incurrence of new or additional Obligations.

 

10.04.     Obligations Independent. The
obligations of Holdings hereunder are those of primary obligor, and not merely
as surety, and are independent of the Obligations and the obligations of any
other guarantor, and a separate action may be brought against Holdings to
enforce this Guaranty whether or not the Borrower or any other person or entity
is joined as a party.

 

10.05.     Subrogation. Holdings shall not
exercise any right of subrogation, contribution, indemnity, reimbursement or
similar rights with respect to any payments it makes under this Guaranty until
all of the Obligations and any amounts payable under this Guaranty have been
indefeasibly paid and performed in full and the Commitments and the Facilities
are terminated. If any amounts are paid to Holdings in violation of the
foregoing limitation, then such amounts shall be held in trust for the benefit
of the Secured Parties and shall forthwith be paid to the Secured Parties to
reduce the amount of the Obligations, whether matured or unmatured.

 

10.06.     Termination Reinstatement. This
Guaranty is a continuing and irrevocable guaranty of all Obligations now or
hereafter existing and shall remain in full force and effect until all
Obligations and any other amounts payable under this Guaranty are indefeasibly
paid in full in cash. Notwithstanding the foregoing, this Guaranty shall
continue in full force and effect or be revived, as the case may be, if any
payment by or on behalf of the

 

87

 

Borrower or Holdings is
made, or any of the Secured Parties exercises its right of setoff, in respect
of the Obligations and such payment or the proceeds of such setoff or any part
thereof is subsequently invalidated, declared to be fraudulent or preferential,
set aside or required (including pursuant to any settlement entered into by any
of the Secured Parties in their discretion) to be repaid to a trustee, receiver
or any other party, in connection with any proceeding under any Debtor Relief
Laws or otherwise, all as if such payment had not been made or such setoff had
not occurred and whether or not the Secured Parties are in possession of or
have released this Guaranty and regardless of any prior revocation, rescission,
termination or reduction. The obligations of Holdings under this paragraph
shall survive termination of this Guaranty.

 

10.07.     Subordination. Holdings hereby
subordinates the payment of all obligations and indebtedness of the Borrower
owing to Holdings, whether now existing or hereafter arising, including but not
limited to any obligation of the Borrower to Holdings as subrogee of the
Secured Parties or resulting from Holdings’ performance under this Guaranty, to
the indefeasible payment in full in cash of all Obligations. If the Secured
Parties so request, any such obligation or indebtedness of the Borrower to
Holdings shall be enforced and performance received by Holdings as trustee for
the Secured Parties and the proceeds thereof shall be paid over to the Secured
Parties on account of the Obligations, but without reducing or affecting in any
manner the liability of Holdings under this Guaranty.

 

10.08.     Stay of Acceleration. If acceleration
of the time for payment of any of the Obligations is stayed, in connection with
any case commenced by or against Holdings or the Borrower under any Debtor
Relief Laws, or otherwise, all such amounts shall nonetheless be payable by
Holdings immediately upon demand by the Secured Parties.

 

10.09.     Condition of Borrower. Holdings
acknowledges and agrees that it has the sole responsibility for, and has
adequate means of, obtaining from the Borrower and any other guarantor such
information concerning the financial condition, business and operations of the
Borrower and any such other guarantor as Holdings requires, and that none of
the Secured Parties has any duty, and Holdings is not relying on the Secured
Parties at any time, to disclose to Holdings any information relating to the
business, operations or financial condition of the Borrower or any other
guarantor (Holdings waiving any duty on the part of the Secured Parties to
disclose such information and any defense relating to the failure to provide
the same).

 

ARTICLE XI

MISCELLANEOUS

 

11.01.     Amendments, Etc. No amendment or waiver of any provision of
this Agreement or any other Loan Document, and no consent to any departure by
the Borrower or any other Loan Party therefrom, shall be effective unless in
writing signed by the Required Lenders and the Borrower or the applicable Loan
Party, as the case may be, and acknowledged by the Administrative Agent, and
each such waiver or consent shall be effective only in the specific instance
and for the specific purpose for which given; provided, however,
that no such amendment, waiver or consent shall:

 

88

 

(a)            waive any condition set forth in Section 4.01
(other than Section 4.01 (b)(i) or (c)) without the written
consent of each Lender;

 

(b)            extend or increase the Commitment of any Lender (or
reinstate any Commitment terminated pursuant to Section 8.02) without
the written consent of such Lender;

 

(c)            postpone any date fixed by this Agreement or any other
Loan Document for any payment (excluding mandatory prepayments) of principal,
interest, fees or other amounts due to the Lenders (or any of them) hereunder
or under such other Loan Document without the written consent of each Lender
entitled to such payment;

 

(d)            reduce the principal of, or the rate of interest
specified herein on, any Loan, or any fees or other amounts payable hereunder
or under any other Loan Document without the written consent of each Lender
entitled to such amount; provided, however, that only the consent
of the Required Lenders shall be necessary (i) to amend the definition of “Default
Rate” or to waive any obligation of the Borrower to pay interest at the Default
Rate or (ii) to amend any financial covenant hereunder (or any defined term
used therein) even if the effect of such amendment would be to reduce the rate
of interest on any Loan or to reduce any fee payable hereunder;

 

(e)            change (i) Section 2.13 or Section 8.03 in
a manner that would alter the pro rata sharing of payments required thereby
without the written consent of each Lender or (ii) the order of application of
any reduction in the Commitments or any prepayment of Loans from the
application thereof set forth in the applicable provisions of Section
2.05(b) or 2.06(b), respectively, in any manner that materially and
adversely affects the Lenders without the written consent of the Required
Lenders;

 

(f)             change (i) any provision of this Section 11.01 or
the definition of “Required Lenders” or any other provision hereof specifying
the number or percentage of Lenders required to amend, waive or otherwise
modify any rights hereunder or make any determination or grant any consent
hereunder without the written consent of each Lender;

 

(g)            release all or substantially all of the Collateral in any
transaction or series of related transactions, without the written consent of
each Lender;

 

(h)            release all or substantially all of the value of the
Guaranty, without the written consent of each Lender; or

 

(i)              impose any greater restriction on the ability of any
Lender to assign any of its rights or obligations hereunder without the written
consent of each Lender;

 

and provided, further,
that (i) no amendment, waiver or consent shall, unless in writing and signed by
the Administrative Agent in addition to the Lenders required above, affect the
rights or duties of the Administrative Agent under this Agreement or any other
Loan Document; and (ii) the Fee Letter may be amended, or rights or privileges
thereunder waived, in a writing executed only by the parties thereto.
Notwithstanding anything to the contrary herein, no Defaulting Lender shall
have any right to approve or disapprove any amendment, waiver or consent

 

89

 

hereunder, except that the
Commitment of such Lender may not be increased or extended without the consent
of such Lender.

 

If, in connection with any
proposed amendment, waiver, or consent, the consent of all of the Lenders, or
all of the Lenders directly affected thereby, is required pursuant to this Section
11.01, and any such Lender refuses to consent to such amendment, waiver or
consent as to which the Required Lenders have consented (any such Lender whose
consent is not obtained as described in this Section 11.01 being referred to as
a “Non-Consenting Lender”), then, so long as the Administrative Agent is
not a Non-Consenting Lender, at the Borrower’s request and at the sole cost and
expense of the Borrower, the Administrative Agent or an Eligible Assignee shall
be entitled (but shall have no obligation) to purchase from such Non-Consenting
Lender, and such Non-Consenting Lender (by its acceptance of the benefits of
the applicable Loan Documents) agrees that it shall, upon the Administrative
Agent’s request, sell and assign to the Administrative Agent or such Eligible
Assignee, all of the Loans and Commitments of such Non-Consenting Lender or
Non-Consenting Lenders for an amount equal to the principal balance of all
Loans held by the Non-Consenting Lender and all accrued interest and fees with
respect thereto through the date of sale; provided that such Eligible
Assignee consents to the proposed amendment, waiver or consent and provided,
further, that such amendment, waiver or consent can be effected as a
result of such purchase (together with all other purchases to be made pursuant
to this paragraph). Each Lender (by its acceptance of the benefits of the Loan
Documents) agrees that, if it becomes a Non-Consenting Lender, it shall execute
and deliver to the Administrative Agent an Assignment and Assumption to
evidence such sale and purchase and shall deliver to the Administrative Agent
any Note (if the assigning Lender’s Loans are evidenced by Notes) subject to
such Assignment and Assumption; provided, however, that the failure of any
Non-Consenting Lender to execute an Assignment and Assumption shall not render
such sale and purchase (and the corresponding assignment) ineffective.

 

11.02.      Notices; Effectiveness; Electronic
Communications.

 

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

 

(i)            if to Holdings, the Borrower or the
Administrative Agent, to the address, telecopier number, electronic mail
address or telephone number specified for such Person on Schedule 11.02;
and

 

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

 

Notices sent by hand or
overnight courier service, or mailed by certified or registered mail, shall be
deemed to have been given when received; notices sent by telecopier shall be
deemed to have been given when sent (except that, if not given during normal
business hours for the recipient,

 

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shall be deemed to have been
given at the opening of business on the next business day for the recipient).
Notices delivered through electronic communications to the extent provided in
subsection (b) below shall be effective as provided in such subsection (b).

 

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

 

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

 

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

 

91

 

(d)            Change of Address, Etc. Each of Holdings, the
Borrower and the Administrative Agent may change its address, telecopier or
telephone number for notices and other communications hereunder by notice to
the other parties hereto. Each other Lender may change its address, telecopier
or telephone number for notices and other communications hereunder by notice to
the Borrower and the Administrative Agent. In addition, each Lender agrees to
notify the Administrative Agent from time to time to ensure that the
Administrative Agent has on record (i) an effective address, contact name,
telephone number, telecopier number and electronic mail address to which
notices and other communications may be sent and (ii) accurate wire
instructions for such Lender.

 

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

 

11.03.     No Waiver: Cumulative Remedies. No
failure by any Lender or the Administrative Agent to exercise, and no delay by
any such Person in exercising, any right, remedy, power or privilege hereunder
or under any other Loan Document shall operate as a waiver thereof; nor shall
any single or partial exercise of any right, remedy, power or privilege
hereunder preclude any other or further exercise thereof or the exercise of any
other right, remedy, power or privilege. The rights, remedies, powers and
privileges herein provided, and provided under each other Loan Document, are
cumulative and not exclusive of any rights, remedies, powers and privileges
provided by law.

 

11.04.     Expenses: Indemnity: Damage Waiver.

 

(a)            Costs and Expenses. The Borrower shall pay (i) all
reasonable out-of-pocket expenses incurred by the Administrative Agent and its
Affiliates (including the reasonable fees, charges and disbursements of counsel
for the Administrative Agent), in connection with the syndication of the credit
facilities provided for herein, the preparation, negotiation, execution,
delivery and administration of this Agreement and the other Loan Documents or
any amendments, modifications or waivers of the provisions hereof or thereof
(whether or not the transactions contemplated hereby or thereby shall be
consummated) and (ii) all out-of-pocket expenses incurred by the Administrative
Agent or any Lender (including the fees, charges and disbursements of any
counsel for the Administrative Agent or any Lender), in connection with the
enforcement or protection of its rights (A) in connection with this Agreement
and the other Loan Documents, including its rights under this Section, or (B)
in connection with Loans made hereunder, including all such out-of-pocket
expenses incurred during any workout, restructuring or negotiations in respect
of such Loans; provided that the

 

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Borrower shall not be liable
for the fees and expenses of more than one separate firm of attorneys at any
time for all Lenders, except to the extent that any additional counsel are in
the reasonable judgment of such Lender necessary as a result of an actual or
potential conflict of interest among Lenders.

 

(b)           Indemnification by the Borrower. The Borrower shall
indemnify the Administrative Agent (and any sub-agent thereof) and each Lender,
and each Related Party of any of the foregoing Persons (each such Person being
called an “Indemnitee”) against, and hold each Indemnitee harmless from,
any and all losses, claims, damages, liabilities and related expenses
(including the fees, charges and disbursements of any counsel for any
Indemnitee), incurred by any Indemnitee or asserted against any Indemnitee by
any third party or by the Borrower or any other Loan Party arising out of, in connection
with, or as a result of (i) the execution or delivery of this Agreement, any
other Loan Document or any agreement or instrument contemplated hereby or
thereby, the performance by the parties hereto of their respective obligations
hereunder or thereunder or the consummation of the transactions contemplated
hereby or thereby, or, in the case of the Administrative Agent (and any
sub-agent thereof) and its Related Parties only, the administration of this
Agreement and the other Loan Documents, (ii) any Loan or the use or proposed
use of the proceeds therefrom, (iii) any actual or alleged presence or release
of Hazardous Materials on or from any property owned or operated by the
Borrower or any of its Subsidiaries, or any Environmental Liability related in
any way to the Borrower or any of its Subsidiaries, or (iv) any actual or
prospective claim, litigation, investigation or proceeding relating to any of
the foregoing, whether based on contract, tort or any other theory, whether
brought by a third party or by the Borrower or any other Loan Party and
regardless of whether any Indemnitee is a party thereto; provided that
such indemnity shall not, as to any Indemnitee, be available to the extent that
such losses, claims, damages, liabilities or related expenses (w) are
determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the bad faith, gross negligence or willful
misconduct of such Indemnitee or (x) result from a claim brought by the
Borrower or any other Loan Party against an Indemnitee for breach of such
Indemnitee’s obligations hereunder or under any other Loan Document, (y) does
not involve, directly or indirectly, an act or omission of any Loan Party or
any of their respective affiliates, stockholders, partners or other equity
holders or (z) is brought by an Indemnitee against another Indemnitee (other
than against Bank of America in its capacity of Administrative Agent or Banc of
America Securities LLC or Credit Suisse Securities (USA) LLC in their
capacities as Arrangers), provided, further that the Borrower shall not, in
connection with any one such action or proceeding or separate but substantially
similar actions or proceedings arising out of the same general allegations, be
liable for the fees and expenses or more than one separate firm of attorneys at
any time for all Indemnitees, except to the extent that (x) local or special
counsel, in addition to its regular counsel, is required in the reasonable
judgment of such Indemnitee in order to effectively defend against such action
or proceeding or (y) any additional counsel are in the reasonable judgment of
such Indemnitee necessary as a result of an actual or potential conflict of
interest among Indemnitees.

 

(c)            Reimbursement by Lenders. To the extent that the
Borrower for any reason fails to indefeasibly pay any amount required under
subsection (a) or (b) of this Section to be paid by it to the Administrative
Agent (or any sub-agent thereof) or any Related Party of any of the foregoing,
each Lender severally agrees to pay to the Administrative Agent (or any such

 

93

 

sub-agent) or such Related
Party, as the case may be, such Lender’s Applicable Percentage (determined as
of the time that the applicable unreimbursed expense or indemnity payment is
sought) of such unpaid amount, provided that the unreimbursed expense or
indemnified loss, claim, damage, liability or related expense, as the case may
be, was incurred by or asserted against the Administrative Agent (or any such
sub-agent) in its capacity as such, or against any Related Party of any of the
foregoing acting for the Administrative Agent (or any such sub-agent) in
connection with such capacity. The obligations of the Lenders under this
subsection (c) are subject to the provisions of Section 2.12(d).

 

(d)            Waiver of Consequential Damages, Etc. To the
fullest extent permitted by applicable law, the Borrower shall not assert, and
hereby waives, any claim against any Indemnitee, on any theory of liability,
for special, indirect, consequential or punitive damages (as opposed to direct
or actual damages) arising out of, in connection with, or as a result of, this
Agreement, any other Loan Document or any agreement or instrument contemplated
hereby, the transactions contemplated hereby or thereby, any Loan or the use of
the proceeds thereof. No Indemnitee referred to in subsection (b) above shall
be liable for any damages arising from the use by unintended recipients of any
information or other materials distributed to such unintended recipients by
such Indemnitee through telecommunications, electronic or other information
transmission systems in connection with this Agreement or the other Loan
Documents or the transactions contemplated hereby or thereby other than for
direct or actual damages resulting from the bad faith, gross negligence or
willful misconduct of such Indemnitee as determined by a final and
nonappealable judgment of a court of competent jurisdiction.

 

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

 

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

 

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

 

94

 

11.06.     Successors and Assigns.

 

(a)           Successors and Assigns Generally. The provisions of
this Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns permitted hereby, except
that neither the Borrower nor any other Loan Party may assign or otherwise
transfer any of its rights or obligations hereunder without the prior written
consent of the Administrative Agent and each Lender and no Lender may assign or
otherwise transfer any of its rights or obligations hereunder except (i) to an
assignee in accordance with the provisions of Section 11.06(b), (ii) by
way of participation in accordance with the provisions of Section 11.06(d),
or (iii) by way of pledge or assignment of a security interest subject to the
restrictions of Section 11.06(f), (and any other attempted
assignment or transfer by any party hereto shall be null and void). Nothing in
this Agreement, expressed or implied, shall be construed to confer upon any Person
(other than the parties hereto, their respective successors and assigns
permitted hereby, Participants to the extent provided in subsection (d) of this
Section and, to the extent expressly contemplated hereby, the Related Parties
of each of the Administrative Agent and the Lenders) any legal or equitable
right, remedy or claim under or by reason of this Agreement..

 

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

 

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

 

(B)          in any case not described in
subsection (b)(i)(A) of this Section, the aggregate amount of the Commitment
(which for this purpose includes Loans outstanding thereunder) or, if the
Commitment is not then in effect, the principal outstanding balance of the
Loans of the assigning Lender subject to each such assignment, determined as of
the date the Assignment and Assumption with respect to such assignment is
delivered to the Administrative Agent or, if “Trade Date” is specified in the
Assignment and Assumption, as of the Trade Date, shall not be less than
$1,000,000, unless each of the Administrative Agent and, so long as no Event of
Default under Section 8.01 (a), (f) or (g) has occurred and is continuing or
any other Event of Default has occurred and is continuing for ten or more Business
Days at the time of such assignment, the Borrower otherwise consents (each such
consent not to be unreasonably withheld or delayed); provided, however,
that concurrent assignments to members of an Assignee Group and concurrent
assignments from members of an Assignee Group to a single Eligible Assignee (or
to an Eligible Assignee and members of its Assignee Group) will be treated as a
single assignment for purposes of determining whether such minimum amount has
been met;

 

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

 

95

 

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

 

(A)          the consent of the Borrower (such
consent not to be unreasonably withheld or delayed) shall be required unless
(1) an Event of Default under Section 8.01(a), (f) or (g) has
occurred and is continuing or any other Event of Default has occurred and is
continuing for ten or more Business Days at the time of such assignment or (2)
such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund;
and

 

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

 

(iv)          Assignment and Assumption. The
parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Assumption, together with a processing and recordation
fee in the amount of $3,500; provided, however, that the
Administrative Agent may, in its sole discretion, elect to waive such
processing and recordation fee in the case of any assignment. The assignee, if
it shall not be a Lender, shall deliver to the Administrative Agent an
Administrative Questionnaire.

 

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

 

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

 

Subject to acceptance and
recording thereof by the Administrative Agent pursuant to subsection (c) of
this Section, from and after the effective date specified in each Assignment
and Assumption, the assignee thereunder shall be a party to this Agreement and,
to the extent of the interest assigned by such Assignment and Assumption, have
the rights and obligations of a Lender under this Agreement, and the assigning
Lender thereunder shall, to the extent of the interest assigned by such
Assignment and Assumption, be released from its obligations under this
Agreement (and, in the case of an Assignment and Assumption covering all of the
assigning Lender’s rights and obligations under this Agreement, such Lender
shall cease to be a party hereto but shall continue to be entitled to the
benefits of Sections 3.01, 3.04, 3.05 and 11.04 with
respect to facts and circumstances occurring prior to the effective date of
such assignment). Upon request, the Borrower (at their expense) shall execute
and deliver a Note to the assignee Lender. Any assignment or transfer by a
Lender of rights or obligations under this Agreement that does not comply with
this subsection shall be treated for purposes of this Agreement as a sale by
such Lender of a participation in such rights and obligations in accordance
with Section 11 .06(d).

 

96

 

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

 

(d)           Participations. Any Lender may at any time, without
the consent of, or notice to, the Borrower or the Administrative Agent, sell
participations to any Person (other than a natural person or the Borrower or
any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”)
in all or a portion of such Lender’s rights and/or obligations under this
Agreement (including all or a portion of its Commitment and/or the Loans owing
to it); provided that (i) such Lender’s obligations under this Agreement
shall remain unchanged, (ii) such Lender shall remain solely responsible to the
other parties hereto for the performance of such obligations and (iii) the
Borrower, the Administrative Agent and the Lenders shall continue to deal
solely and directly with such Lender in connection with such Lender’s rights
and obligations under this Agreement. Any agreement or instrument pursuant to
which a Lender sells such a participation shall provide that such Lender shall
retain the sole right to enforce this Agreement and to approve any amendment,
modification or waiver of any provision of this Agreement; provided that
such agreement or instrument may provide that such Lender will not, without the
consent of the Participant, agrees to any amendment, waiver or other
modification described in the first proviso to Section 11.01 that
affects such Participant. Subject to subsection (e) of this Section, the
Borrower agrees that each Participant shall be entitled to the benefits of Sections
3.01, 3.04 and 3.05 to the same extent as if it were a Lender
and had acquired its interest by assignment pursuant to Section 11.06(b).
To the extent permitted by law, each Participant also shall be entitled to the
benefits of Section 11.08 as though it were a Lender, provided
such Participant agrees to be subject to Section 2.13 as though it were
a Lender.

 

(e)            Limitations upon Participant Rights. A Participant
shall not be entitled to receive any greater payment under Section 3.01
or 3.04 than the applicable Lender would have been entitled to receive
with respect to the participation sold to such Participant, unless the right to
a greater payment results from a Change in Law after the Participant becomes a
Participant with respect to such Participation. A Participant that would be a
Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 3.01
unless the Borrower is notified of the participation sold to such Participant
and such Participant agrees, for the benefit of the Borrower, to comply with Section
3.01(e) as though it were a Lender.

 

(f)            Certain Pledges. Any Lender may at any time pledge
or assign a security interest in all or any portion of its rights under this
Agreement (including under its Note, if any) to secure obligations of such
Lender, including any pledge or assignment to secure obligations to a Federal
Reserve Bank; provided that no such pledge or assignment shall release
such Lender

 

97

 

from any of its obligations
hereunder or substitute any such pledgee or assignee for such Lender as a party
hereto.

 

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

 

11.07.     Treatment of Certain Information;
Confidentiality. Each of the Administrative Agent and the Lenders agrees to
maintain the confidentiality of the Information (as defined below), except that
Information may be disclosed (a) to its Affiliates and to its and its
Affiliates’ respective partners, directors, officers, employees, agents,
advisors and representatives (it being understood that the Persons to whom such
disclosure is made will be informed of the confidential nature of such
Information and instructed to keep such Information confidential), (b) to the
extent requested by any regulatory authority purporting to have jurisdiction
over it (including any self-regulatory authority, such as the National
Association of Insurance Commissioners), (c) to the extent required by
applicable laws or regulations or by any subpoena or similar legal process, (d)
to any other party hereto, (e) in connection with the exercise of any remedies
hereunder or under any other Loan Document or any action or proceeding relating
to this Agreement or any other Loan Document or the enforcement of rights
hereunder or thereunder, (f) subject to an agreement containing provisions
substantially the same as those of this Section, to (i) any assignee of or
Participant in, or any prospective assignee of or Participant in, any of its
rights or obligations under this Agreement, (ii) any actual or prospective
counterparty (or its advisors) to any swap or derivative transaction relating
to the Borrower and its obligations or (iii) any pledgee referred to in Section
11.06(f), (g) with the consent of the Borrower or (h) to the extent such
Information (i) becomes publicly available other than as a result of a breach
of this Section or (ii) becomes available to the Administrative Agent, any
Lender or any of their respective Affiliates on a nonconfidential basis from a
source other than the Borrower.

 

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

 

98

 

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

 

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

 

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

 

11.10.      Counterparts Integration Effectiveness.
This Agreement may be executed in counterparts (and by different parties hereto
in different counterparts), each of which shall constitute an original, but all
of which when taken together shall constitute a single contract. This Agreement
and the other Loan Documents constitute the entire contract among the parties
relating to the subject matter hereof and supersede any and all previous agreements
and understandings, oral or written, relating to the subject matter hereof.
Except as provided in Section 4.01, this Agreement shall become
effective when it shall have been executed by the Administrative Agent and when
the Administrative Agent shall have received counterparts hereof that, when
taken together, bear the signatures of each of the other parties hereto.
Delivery

 

99

 

of an executed counterpart
of a signature page of this Agreement by telecopy shall be effective as
delivery of a manually executed counterpart of this Agreement.

 

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

 

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

 

11.13.     Replacement of Lenders. If any
Lender requests compensation under Section 3.04, or if the Borrower is
required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 3.01, or if
any Lender is a Defaulting Lender, then the Borrower may, at its sole expense
and effort, upon notice to such Lender and the Administrative Agent, require
such Lender to assign and delegate, without recourse (in accordance with and
subject to the restrictions contained in, and consents required by, Section
11.06), all of its interests, rights and obligations under this Agreement
and the related Loan Documents to an assignee that shall assume such
obligations (which assignee may be another Lender, if a Lender accepts such
assignment), provided that:

 

(a)           the Borrower shall have paid to the Administrative Agent
the assignment fee specified in Section 11.06(b);

 

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

 

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

 

100

 

(d)            such assignment does not conflict with applicable Laws..

 

A Lender shall not be
required to make any such assignment or delegation if, prior thereto, as a
result of a waiver by such Lender or otherwise, the circumstances entitling the
Borrower to require such assignment and delegation cease to apply.

 

11.14.      Governing Law: Jurisdiction. Etc.

 

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

 

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

 

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

 

(d)            SERVICE OF PROCESS. EACH PARTY HERETO IRREVOCABLY
CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN

 

101

 

SECTION 11.02. NOTHING IN THIS AGREEMENT WILL AFFECT. THE
RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY
APPLICABLE LAW

 

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

 

11.16.      No Advisory or Fiduciary Responsibility.
In connection with all aspects of each transaction contemplated hereby, the
Borrower and Holdings each acknowledge and agree, and acknowledge their
respective Affiliates’ understanding, that: (i) the credit facility provided
for hereunder and any related arranging or other services in connection
therewith (including in connection with any amendment, waiver or other
modification hereof or of any other Loan Document) are an arm’s-length
commercial transaction between the Borrower, Holdings and their respective
Affiliates, on the one hand, and the Administrative Agent and the Arrangers, on
the other hand, and each of the Borrower and Holdings is capable of evaluating
and understanding and understands and accepts the terms, risks and conditions
of the transactions contemplated hereby and by the other Loan Documents
(including any amendment, waiver or other modification hereof or thereof); (ii)
in connection with the process leading to such transaction, the Administrative
Agent and, each Arranger each is and has been acting solely as a principal and
is not the financial advisor, agent or fiduciary, for the Borrower, Holdings or
any of their respective Affiliates, stockholders, creditors or employees or any
other Person; (iii) neither the Administrative Agent nor, any Arranger has
assumed or will assume an advisory, agency or fiduciary responsibility in favor
of the Borrower or Holdings with respect to any of the transactions
contemplated hereby or the process leading thereto, including with respect to
any amendment, waiver or other modification hereof or of any other Loan
Document (irrespective of whether the Administrative Agent or any Arranger has
advised or is currently advising the Borrower, Holdings or any of their
respective Affiliates on other matters) and neither the Administrative Agent
nor any Arranger has any obligation to the Borrower, Holdings or any of their
respective Affiliates with respect to the transactions contemplated hereby
except those obligations expressly set forth herein and in the other Loan
Documents; (iv) the Administrative Agent and the Arrangers and their respective
Affiliates may be engaged in a broad range of transactions that involve
interests that differ from those of the Borrower, Holdings and their respective
Affiliates, and neither the Administrative Agent nor any Arranger has any
obligation to disclose any of such interests by virtue of any advisory, agency
or fiduciary relationship; and

 

102

 

(v) the Administrative Agent
and the Arrangers have not provided and will not provide any legal, accounting,
regulatory or tax advice with respect to any of the transactions contemplated
hereby (including any amendment, waiver or other modification hereof or of any
other Loan Document) and each of the Borrower and Holdings has consulted its
own legal, accounting, regulatory and tax advisors to the extent it has deemed
appropriate. Each of the Borrower and Holdings hereby waives and release, to the
fullest extent permitted by law, any claims that it may have against the
Administrative Agent and the Arrangers with respect to any breach or alleged
breach of agency or fiduciary duty.

 

11.17.     USA PATRIOT Act Notice. Each Lender
that is subject to the Act (as hereinafter defined) and the Administrative
Agent (for itself and not on behalf of any Lender) hereby notifies the Borrower
that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L.
107-56 (signed into law October 26, 2001)) (the “Act”), it is required
to obtain, verify and record information that identifies each Loan Party, which
information includes the name and address of each Loan Party and other
information that will allow such Lender or the Administrative Agent, as applicable,
to identify each Loan Party in accordance with the Act.

 

103

 

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

 

	
   

  	
  RISKMETRICS GROUP, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ M. Ethan Berman 

  
	
   

  	
  Name:

  	
  M. Ethan Berman 

  
	
   

  	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
  RISKMETRICS GROUP HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ M. Ethan Berman 

  
	
   

  	
  Name:

  	
  M. Ethan Berman 

  
	
   

  	
  Title:

  	
  President

  
				

 

 

[Second Lien Credit Agreement]

 

S-1

 

	
   

  	
  BANK OF AMERICA, N.A., as 

  
	
   

  	
  Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Klawinski 

  
	
   

  	
  Name:

  	
  Robert Klawinski 

  
	
   

  	
  Title:

  	
  Senior Vice President

  
				

 

 

[Second Lien Credit Agreement]

 

S-2

 

	
   

  	
  BANK OF AMERICA, N.A., as
  a Lender 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Klawinski 

  
	
   

  	
  Name:

  	
  Robert Klawinski 

  
	
   

  	
  Title:

  	
  Senior Vice President

  
				

 

 

[Second Lien Credit Agreement]

 

S-3

 

	
   

  	
  CREDIT SUISSE, CAYMAN ISLANDS
  

  
	
   

  	
  BRANCH, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

S-4

 

	
   

  	
  [OTHER LENDERS]

  

 

S-5Exhibit
10.5

 

SECOND
LIEN GUARANTY

 

GUARANTY AGREEMENT
(this “Agreement”) dated as of January 11, 2007, among each of the
Subsidiaries of Risk Metrics Group Holdings, LLC (the “Borrower”) listed
on Schedule I hereto (the “Subsidiary Guarantors”) and any other Person
(as defined in the Credit Agreement) which may become a Subsidiary Guarantor
hereunder pursuant to a duly executed joinder agreement in the form attached as
Exhibit A hereto (each an “Additional Guarantor”, and together
with the Subsidiary Guarantors, the “Guarantors” and each, a “Guarantor”)
and Bank of America, N.A., as collateral agent (in such capacity, the “Collateral
Agent”) for the Secured Parties (as defined in the Credit Agreement
referred to below).

 

Reference is made to that certain Second Lien Credit Agreement dated as
of January 11, 2007 (as amended, restated, extended, supplemented or otherwise
modified in writing from time to time, the “Credit Agreement;” the terms
defined therein being used herein as therein defined), among the Borrower,
RISKMETRICS GROUP, INC., a Delaware corporation (“Holdings”), each
lender from time to time party hereto (collectively, the “Lenders” and
individually, a “Lender”), BANK OF AMERICA, N.A., as Administrative
Agent and BANC OF AMERICA SECURITIES LLC and CREDIT SUISSE SECURITIES (USA)
LLC, as joint lead arrangers and joint book managers (collectively, the “Arrangers”)
Capitalized terms used and not defined herein (including, without limitation,
the term "Obligations,” as used in Section I and elsewhere herein)
are used with the meanings assigned to such terms in the Credit Agreement.

 

The Lenders have agreed to make Loans to the Borrower pursuant to, and
upon the terms and subject to the conditions specified in, the Credit
Agreement. Each Subsidiary Guarantor is a Subsidiary of the Borrower and, along
with the Parent Guarantor, acknowledges that it has derived and will derive
substantial benefit from the making of the Loans by the Lenders to the
Borrower. As consideration therefore and in order to induce the Lenders to make
Loans, each Guarantor is willing to execute this Agreement.

 

Accordingly, the parties hereto agree as follows:

 

I.                                         Guarantee. Each Guarantor unconditionally guarantees,
jointly with any other Guarantors of the Obligations under the Credit Agreement
and other Loan Documents and severally, as a primary obligor and not merely as
a surety, the due and punctual payment of the Obligations. Each Guarantor
waives notice of, or any requirement for further assent to, any agreements or
arrangements whatsoever by the Secured Parties with any other person pertaining
to the Obligations, including agreements and arrangements for payment,
extension, renewal, subordination, composition, arrangement, discharge or
release of the whole or any part of the Obligations, or for the discharge or
surrender of any or all security, or for the compromise, whether by way of
acceptance of part payment or otherwise, and the same shall in no way impair
each Guarantor’s liability hereunder.

 

II.                                     Obligations  Not Waived. To
the fullest extent permitted by applicable law, each Guarantor waives
presentment to, demand of payment from and protest to the Borrower or any other
person of any of the Obligations, and also waives notice of acceptance of its
guarantee, notice of protest for nonpayment and all other formalities. To the
fullest extent permitted by applicable law, the Guaranty of each Guarantor
hereunder shall not be affected by (a) the failure of any Loan Party to assert
any claim or demand or to enforce or exercise any right or remedy against the
Borrower or any Guarantor under the provisions of the Credit Agreement, any
other Loan Document or otherwise; (b) any extension, renewal or increase of or
in any of the Obligations; (c) any rescission, waiver, amendment or modification
of, or any release from, any of the terms or provisions of this Agreement, the
Credit Agreement, any other Loan

 

 

Document, any guarantee or any other agreement or instrument, including
with respect to any Guarantor under the Loan Documents; (d) the release of (or
the failure to perfect a security interest in) any of the security held by or
on behalf of the Collateral Agent or any other Secured Party; or (e) the
failure or delay of any Secured Party to exercise any right or remedy against
the Borrower or any Guarantor of the Obligations.

 

III.                                 Security. Each Guarantor authorizes the Collateral Agent to
(a) take and hold security for the payment of this Guaranty and the Obligations
and exchange, enforce, waive and release any such security pursuant to the
terms of any other Loan Documents; (b) apply such security and direct the order
or manner of sale thereof as it in its sole discretion may determine subject to
the terms of any other Loan Documents; and (c) release or substitute any one or
more endorsees, other Guarantors or other obligors pursuant to the terms of any
other Loan Documents. In no event shall this Section III require any Guarantor
to grant security, except as required by the terms of the Loan Documents.

 

IV.                                 Guarantee of Payment. Each Guarantor further agrees that its
guarantee constitutes an absolute and unconditional guarantee of payment and
performance when due and not of collection, and waives any right to require
that any resort be had by the Collateral Agent or any other Secured Party to
any of the security held for payment of the Obligations or to any balance of
any deposit account or credit on the books of the Collateral Agent or any other
Secured Party in favor of the Borrower or any other person.

 

V.                                     No Discharge or Diminishment of Guaranty. The obligations of
each Guarantor hereunder shall not be subject to any reduction, limitation,
impairment or termination for any reason (other than the indefeasible payment
in full in cash of the Obligations), including any claim of waiver, release,
surrender, alteration or compromise of any of the Obligations, and shall not be
subject to any defense (other than a defense of payment) or setoff,
counterclaim, recoupment or termination whatsoever by reason of the invalidity,
illegality or unenforceability of the Obligations or otherwise. Without
limiting the generality of the foregoing, the obligations of each Guarantor
hereunder shall not be discharged or impaired or otherwise affected by the
failure of the Collateral Agent or any other Secured Party to assert any claim
or demand or to enforce any remedy under the Credit Agreement, any other Loan
Document, any guarantee or any other agreement or instrument, by any amendment,
waiver or modification of any provision of the Credit Agreement or any other
Loan Document or other agreement or instrument, by any default, failure or
delay, willful or otherwise, in the performance of the Obligations, or by any
other act, omission or delay to do any other act that may or might in any
manner or to any extent vary the risk of any Guarantor or that would otherwise
operate as a discharge of any Guarantor as a matter of law or equity (other
than the indefeasible payment in full in cash of all the Obligations) or which
would impair or eliminate any right of any Guarantor to subrogation.

 

VI.                                 Defenses Waived. To the fullest extent permitted by
applicable law, each Guarantor waives any defense based on or arising out of
the unenforceability of the Obligations or any part thereof from any cause or
the cessation from any cause of the liability (other than the final and
indefeasible payment in full in cash of the Obligations) of the Borrower or any
other person. Subject to the terms of the other Loan Documents, the Collateral
Agent and the other Secured Parties may, at their election, foreclose on any
security held by one or more of them by one or more judicial or nonjudicial
sales, accept an assignment of any such security in lieu of foreclosure,
compromise or adjust any part of the Obligations, make any other accommodation
with the Borrower or any other Guarantor or exercise any other right or remedy
available to them against the Borrower or any other Guarantor, without
affecting or impairing in any way the liability of each Guarantor hereunder
except to the extent the Obligations have been fully, finally and indefeasibly
paid in cash. Pursuant to and to the fullest extent permitted by applicable
law, each Guarantor waives any defense arising out of any such election even
though such election

 

 

operates, pursuant to applicable law, to impair or to extinguish any
right of reimbursement or subrogation or other right or remedy of each
Guarantor against the Borrower or any other Guarantor or any security.

 

VII.                             Agreement to Pay; Subordination. In furtherance of the
foregoing and not in limitation of any other right that the Collateral Agent or
any other Secured Party has at law or in equity against each Guarantor by
virtue hereof, upon the failure of the Borrower or any other Loan Party to pay
any Obligation when and as the same shall become due, whether at maturity, by
acceleration, after notice of prepayment or otherwise, each Guarantor hereby
promises to and will forthwith pay, or cause to be paid, to the Collateral
Agent or such other Secured Party as designated thereby in cash an amount equal
to the unpaid principal amount of such Obligations then due, together with
accrued and unpaid interest and fees on such Obligations. Upon payment by each
Guarantor of any sums to the Collateral Agent or any Secured Party as provided
above, all rights of each Guarantor against the Borrower arising as a result
thereof by way of right of subrogation, contribution, reimbursement, indemnity
or otherwise shall in all respects be subordinate and junior in right of
payment to the prior indefeasible payment in full in cash of all the
Obligations. In addition, any indebtedness of the Borrower or any Subsidiary
now or hereafter held by each Guarantor that is required by the Credit
Agreement to be subordinated to the Obligations is hereby subordinated in right
of payment to the prior payment in full of the Obligations. If any amount shall
be paid to any Guarantor on account of (i) such subrogation, contribution,
reimbursement, indemnity or similar right or (ii) any such indebtedness at any
time when any Obligation then due and owing has not been paid, such amount
shall be held in trust for the benefit of the Secured Parties and shall
forthwith be paid to the Collateral Agent to be credited against the payment of
the Obligations, whether matured or unmatured, in accordance with the terms of
the Loan Documents.

 

VIII.                         General Limitation on Guarantee Obligations. In any action
or proceeding involving any Subsidiary state corporate law, or any state,
Federal or foreign bankruptcy, insolvency, reorganization or other law
affecting the rights of creditors generally, if the obligations of any
Guarantor under this Agreement would otherwise be held or determined to be
void, voidable, invalid or unenforceable, or subordinated to the claims of any
other creditors, on account of the amount of its liability under this
Agreement, then, notwithstanding any other provision to the contrary, the
amount of such liability shall, without any further action by any Guarantor,
any creditor or any other Person, be automatically limited and reduced to the
highest amount that is valid and enforceable and not subordinated to the claims
of other creditors as determined in such action or proceeding.

 

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

 

X.                                    Covenant; Representations and Warranties. Each Guarantor
agrees and covenants to, and to cause its Subsidiary to, take, or refrain from
taking, each action that is necessary to be taken or not taken, so that no
breach of the agreements and covenants contained in the Credit Agreement
pertaining to actions to be taken, or not taken, by such Guarantor or its
Subsidiary will result. Each Guarantor represents and warrants as to itself
that all representations and warranties relating to it contained in the Credit
Agreement are true and correct, provided that
each reference in any such representation and warranty to the knowledge of
Holdings or the Borrower shall, for the purposes of this Section X, be deemed
to be a reference to Guarantor’s knowledge.

 

XI.                                Termination. The Guaranties made hereunder are continuing
and irrevocable guaranties of all Obligations now or hereafter existing and
shall terminate when (i) the principal of and

 

 

premium, if any, and interest (including interest accruing during the
pendency of any bankruptcy, insolvency, receivership or other similar
proceeding, regardless of whether allowed or allowable in such proceeding) on
all Loans and (ii) all other Obligations then due and owing, have in each case
been indefeasibly paid in full; provided that
any such Guaranty shall continue to be effective or be reinstated, as the case
may be, if at any time any payment, or any part thereof, on any Obligation is
rescinded or must otherwise be restored by any Secured Party upon the
bankruptcy or reorganization of the Borrower, the Guarantors or otherwise.

 

XII.                            Binding Effect; Several Agreement; Assignments; Releases.
Whenever in this Agreement any of the parties hereto is referred to, such
reference shall be deemed to include the successors and assigns of such party;
and all covenants, promises and agreements by or on behalf of each Guarantor
that are contained in this Agreement shall bind and inure to the benefit of
each party hereto and their respective successors and assigns. This Agreement
shall become effective as to each Guarantor when a counterpart hereof executed
on behalf of each Guarantor shall have been delivered to the Collateral Agent
and a counterpart hereof shall have been executed on behalf of the Collateral
Agent, and thereafter shall be binding upon each Guarantor and the Collateral
Agent and their respective successors and assigns, and shall inure to the
benefit of each Guarantor, the Collateral Agent and the other Secured Parties,
and their respective successors and assigns, except that neither the Borrower,
Holdings nor the Guarantors shall have the right to assign its rights or
obligations hereunder or any interest herein (and any such attempted assignment
shall be void) without the prior written consent of the Required Lenders. The
Collateral Agent is hereby expressly authorized to, and agrees upon request of
the Borrower it will, release any Guarantor from its obligations hereunder
(including its Guaranty) in the event that all the Equity Interests of such
Guarantor shall be sold, transferred or otherwise disposed of to a person other
than Holdings or any of its Subsidiaries in a transaction permitted by the
Credit Agreement.

 

XIII.                        Waivers; Amendment. (a) No failure or delay of the
Collateral 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 Collateral Agent hereunder
and of the other Secured Parties under the other Loan Documents are cumulative
and are not exclusive of any rights or remedies that they would otherwise have.
No waiver of any provision of this Agreement or consent to any departure by any
Guarantor there from 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 or demand on any Guarantor in any case shall entitle such Guarantor 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 a written agreement entered into between the Borrower, the
Guarantors and the Collateral Agent (with the consent of the Lenders if
required under the Credit Agreement).

 

XIV.                       GOVERNING
LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, TILE LAWS OF THE STATE OF NEW YORK.

 

XV.                            Notices. All communications and notices hereunder shall be
in writing and given as provided in Section 11.02 of the Credit Agreement. All
communications and notices hereunder to each Guarantor shall be given to it at
its respective address set forth in Schedule I with a copy to the
Borrower.

 

XVI.                        Survival of Agreement, Severability. (a) All covenants,
agreements, representations and warranties made by the Borrower and the
Guarantors herein and in the certificates or other instruments prepared or
delivered in connection with or pursuant to this Agreement or any other Loan

 

 

Document shall be considered to have been relied upon by the Collateral
Agent and the other Secured Parties and shall survive the making by the Lenders
of the Loans regardless of any investigation made by the Secured Parties or on
their behalf, and shall continue in full force and effect as long as the
principal of or any accrued interest on any Loan or any other fee or amount
payable under this Agreement or any other Loan Document is outstanding and
unpaid or the Commitments have not been terminated.

 

(b)                                 In
the event any one or more of the provisions contained in this Agreement or in
any other Loan Document should be held invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions
contained herein and therein shall not in any way be affected or impaired
thereby (it being understood that the invalidity of a particular provision in a
particular jurisdiction shall not in and of itself affect the validity of such
provision in any other jurisdiction). The parties shall endeavor in good-faith
negotiations to replace the invalid, illegal or unenforceable provisions with
valid provisions the economic effect of which comes as close as possible to
that of the invalid, illegal or unenforceable provisions.

 

XVII.                    Counterparts. This Agreement may be executed in
counterparts, each of which shall constitute an original, but all of which when
taken together shall constitute a single contract, and shall become effective
as provided in Section XII. Delivery of an executed signature page to this
Agreement by electronic transmission (including facsimile or other electronic
transmission (i.e., “PDF” or “TIF”)) shall be as effective as delivery of a
manually executed counterpart of this Agreement.

 

XVIII.                Rules of interpretation. The rules of interpretation
specified in Section 1.02 of the Credit Agreement shall be applicable to this
Agreement.

 

XIX.                       Jurisdiction; Consent to Service of Process. (a) Each party
hereto hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of any New York State court or
Federal court of the United States of America sitting in New York City, and any
appellate court from any thereof, in any action or proceeding arising out of or
relating to this Agreement or the other Loan Documents, or for recognition or
enforcement of any judgment, and each of the parties hereto hereby irrevocably
and unconditionally agrees that all claims in respect of any such action or
proceeding may be heard and determined in such New York State court or, to the
extent permitted by law, in such Federal court. Each of the parties hereto
agrees that a fmal judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other maimer provided by law. Nothing in this Agreement shall affect
any right that the Collateral Agent or any other Secured Party may otherwise have
to bring any action or proceeding relating to this Agreement or the other Loan
Documents against each Guarantor or its properties in the courts of any
jurisdiction.

 

(b)                                 Each
party hereto hereby irrevocably and unconditionally waives, to the fullest extent
it may legally and effectively do so, any objection that it may now or
hereafter have to the laying of venue of any suit, action or proceeding arising
out of or relating to this Agreement or the other Loan Documents in any New
York State or Federal court. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court.

 

(c)                                  Each
party to this Agreement irrevocably consents to service of process in the
manner provided for notices in Section XV. Nothing in this Agreement will
affect the right of any party to this Agreement to serve process in any other
maimer permitted by law.

 

XX.                           Waiver of Jury Trial. EACH PARTY HERETO HEREBY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY

 

 

ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE OTHER
LOAN DOCUMENTS. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATWE, AGENT OR
ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE
BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, AS
APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAiVERS AND CERTIFICATIONS IN
THIS SECTION XX.

 

XXI.                       Right of Setoff. If an Event of Default shall have occurred
and be continuing, each Secured Party is hereby authorized at any time and from
time to time, to the fullest extent permitted by law, to set off and apply any
and all deposits (general or special, time or demand, provisional or final) at
any time held and other Indebtedness at any time owing by such Secured Party to
or for the credit or the account of each Guarantor against any or all the
obligations of such Guarantor now or hereafter existing under this Agreement
and the other Loan Documents held by such Secured Party, irrespective of
whether or not the Collateral Agent or any Secured Party shall have made any
demand under this Agreement or any other Loan Document and although such
obligations may be unmatured. The rights of each Secured Party under this
Section XXI are in addition to other rights and remedies (including other
rights of setoff) which such Secured Party may have.

 

XXII.                   Effectiveness of Obligations. The covenants, agreements and
other obligations hereunder of Holdings and each of its Subsidiaries parties
hereto will become effective concurrently with (but not prior to) the
effectiveness of the Merger, and thereupon such covenants, agreements and other
obligations shall become fully effective and operative without any further
grant, act, confirmation or consent by Holdings or any such Subsidiary.

 

 

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

 

	
   

  	
  INSTITUTIONAL SHAREHOLDER SERVICES

  
	
   

  	
   

  	
  HOLDINGS, INC.

  
	
   

  	
   

  	
  as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John M. Connolly

  
	
   

  	
   

  	
  Name:

  	
  John M. Connolly

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INSTITUTIONAL SHAREHOLDER SERVICES,

  
	
   

  	
   

  	
  INC.

  
	
   

  	
   

  	
  as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John M. Conno1ly

  
	
   

  	
   

  	
  Name: 

  	
  John M. Conno1ly

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INVESTOR RESPONSIBILITY RESEARCH

  
	
   

  	
   

  	
  CENTER, INC.

  
	
   

  	
   

  	
  as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John M. Connol

  
	
   

  	
   

  	
  Name:

  	
  John M. Connolly

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ISS CORPORATE SERVICES, INC.

  
	
   

  	
   

  	
  as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John M. Connol

  
	
   

  	
   

  	
  Name: 

  	
  John M. Connolly

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ISS RREV, INC.

  
	
   

  	
   

  	
  as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John M. Connoll

  
	
   

  	
   

  	
  Name: 

  	
  John M. Connolly

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  President

  	
   

  
														

 

 

[Second Lien Guaranty Agreement]

 

 

	
   

  	
  RISKMETRICS SOLUTIONS, INC. 

  
	
   

  	
   

  	
  as Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ M. Ethan Berman 

  
	
   

  	
   

  	
  Name:  

  	
  M. Ethan Berman

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SECURITIES CLASS ACTION SERVICES LLC 

  
	
   

  	
   

  	
  as Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John M. Connolly

  
	
   

  	
   

  	
  Name: 

  	
  John M. Connolly

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
								

 

[Second Lien Guaranty Agreement]

 

 

	
  Agreed to and Accepted:

  
	
   

  
	
  BANK OF AMERICA, N.A., 

  
	
   

  	
  as Administrative Agent

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Robert Klawinski 

  	
   

  
	
   

  	
  Name: Robert Klawinski 

  
	
   

  	
  Title: Senior Vice President

  
				

 

 

[Second Lien Guaranty Agreement]

 

 

Schedule I 

to the Guaranty

 

Names and Notice Addresses of each Guarantor

 

	
   

  	
  RiskMetrics
  Solutions,

  Inc.

  	
   

  	
  One
  Chase Manhattan

  Plaza, 44thFloor

  New York, New York
 10005

  
	
   

  	
   

  	
   

  
	
   

  	
  Institutional

  Shareholder Services

  Holdings, Inc.

  	
   

  	
  2099
  Gaither Road,

  Suite 501
 Rockville, Maryland
 20850

  
	
   

  	
   

  	
   

  
	
   

  	
  Institutional

  Shareholder Services, Inc.

  	
   

  	
  2099
  Gaither Road,

  Suite 501
 Rockville, Maryland

  20850

  
	
   

  	
   

  	
   

  
	
   

  	
  Securities
  Class Action

  Services LLC

  	
   

  	
  2099
  Gaither Road,

  Suite 501
 Rockville, Maryland

  20850

  
	
   

  	
   

  	
   

  
	
   

  	
  Investor
  Responsibility

  Research Center, Inc.

  	
   

  	
  2099
  Gaither Road,

  Suite 501
 Rockville, Maryland

  20850

  
	
   

  	
   

  	
   

  
	
   

  	
  ISS
  RREV, Inc.

  	
   

  	
  2099
  Gaither Road,

  Suite 501

  Rockville, Maryland

  20850

  
	
   

  	
   

  	
   

  
	
   

  	
  ISS
  Corporate Services,

  Inc.

  	
   

  	
  2101
  Gaither Road,

  Suite 200

  Rockville, Maryland

  20850

  

 

 

EXHIBIT A 

to the Guaranty

[Form of]

JOINDER AGREEMENT

 

Reference is made to that certain Second Lien Credit Agreement dated as
of January 11, 2007 (as amended, restated, extended, supplemented or otherwise
modified in writing from time to time, the “Credit Agreement;” the terms
defined therein being used herein as therein defined), among RISKMETRICS GROUP
HOLDINGS, LLC, a Delaware limited liability company (the “Borrower”),
RISKMETRICS GROUP, INC., a Delaware corporation (“Holdings”), each
lender from time to time party thereto (collectively, the “Lenders” and
individually, a “Lender”), BANK OF AMERICA, N.A., as Administrative
Agent and BANC OF AMERICA SECURITIES LLC and CREDIT SUTSSE SECURITIES (USA)
LLC, as joint lead arrangers and joint book managers (collectively, the “Arrangers”).
Capitalized terms used and not defmed herein are used with the meanings
assigned to such terms inthe Credit Agreement.

 

W I T N E S S E T H:

 

WHEREAS, the Subsidiary Guarantors, any other Person (as defmed in the
Credit Agreement) which may become a Guarantor thereunder pursuant to a duly
executed joinder agreement in the form attached as Exhibit A thereto
(each a “Guarantor”, collectively, the “Guarantors”) and Bank of
America, N.A., as collateral agent (in such capacity, the “Collateral Agent”)
for the Secured Parties (as defined in the Credit Agreement) are parties to the
Guaranty Agreement (the “Guaranty”) dated as of January 11,2007.

 

WHEREAS, the Lenders have agreed to make Loans to the Borrower pursuant
to, and upon the terms and subject to the conditions specified in, the Credit
Agreement.

 

WHEREAS, each Subsidiary Guarantor is a Subsidiary of the Borrower and
acknowledges that it has derived and will derive substantial benefit from the
making of the Loans by the Lenders to the Borrower.

 

WHEREAS, pursuant to Section 6.12(a) of the Credit Agreement, each
Subsidiary that was not in existence on the date of the Credit Agreement is
required to become a Guarantor under the Credit Agreement by executing ajoinder
agreement.

 

WHEREAS, the undersigned Subsidiary (the “New Guarantor”) is
executing this joinder agreement (“Joinder Agreement”) to the Guaranty
as consideration for the Loans previously made.

 

NOW, THEREFORE, the Administrative Agent, Collateral Agent and the New
Guarantor hereby agree as follows:

 

(a)                                  Guarantee.  In
accordance with Section 6.12(a) of the Credit Agreement, the New Guarantor by
its signature below becomes a Guarantor under the Guaranty with the same force
and effect as if originally named therein as a Guarantor.

 

(b)                                 Representations and Warranties.  The New Guarantor hereby (a) agrees to all the
terms and provisions of the Guaranty applicable to it and its subsidiaries as a
Guarantor thereunder and (b) represents and warrants that the representations
and warranties made by it as a Guarantor thereunder are true and correct in all
material respects (except that any representation and warranty that is
qualified as to “materiality” or “Material Adverse Effect” shall be true and
correct in all respects) on and as of the date hereof. Each reference to a
Guarantor in the Guaranty shall be deemed to include the New Guarantor.

 

(c)                                  Severability.  Any
provision of this Joinder Agreement which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

 

(d)                                 Counterparts.  This
Joinder Agreement may be executed in counterparts, each of which shall
constitute an original. Delivery of an executed signature page to this Joinder
Agreement by electronic transmission (including by facsimile or other
electronic transmission (i.e., “PDF” or “TIF”)) shall be as effective as
delivery of a manually executed counterpart of this Joinder Agreement.

 

(e)                                  No Waiver.  Except
as expressly supplemented hereby, the Guaranty shall remain in full force and
effect.

 

(I)                                    Notices.  All
notices, requests and demands to or upon the New Guarantor, any Agent or any
Lender shall be governed by the terms of Section 11.02 of the Credit Agreement.

 

(g)                                 Governing Law.  THIS
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK,
WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THAT WOULD REQUIRE THE
APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

 

[Signature Pages Follow]

 

2

 

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

 

	
   

  	
  [NEW
  GUARANTOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BANK OF
  AMERICA, N.A. , as Collateral 

  
	
   

  	
  Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: 

  
	
   

  	
   

  	
  Title:

  

 

3

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