Document:

Exhibit 10.12

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into as of
May 16, 2003, by and between Green Light Acquisition Company, a Delaware
corporation (the “Company”), and Gary Coury (the “Employee”).
The Company and the Employee are sometimes hereinafter collectively referred to
as the “parties”
and individually as a “party.” Certain capitalized terms used in
this Agreement are defined in Article VII hereof.

 

RECITALS

 

A.            The Company has
entered into an Asset Purchase Agreement (the “Asset Purchase Agreement”)
with U.S. Traffic Corporation (the  “Acquired Company”) whereby it will acquire
substantially all of the assets and good will of two of the three business
segments of the Acquired Company. The Acquired Company is in the business of
manufacturing, selling and servicing traffic control equipment, overhead and
portable traffic display signage, electronic display and message centers,
lighted signage, transit fixtures, power supply sources, electronic components,
and tunnel lighting which are organized into three business segments, including
the Traffic and the Traffic Lighting products segments (the “Business”),
as well as the Myers Power products segment which is not part of the asset
purchase agreement (the “Excluded Business”). The Employee was the
President of the Acquired Company at the time of this acquisition. The Company
is and will be engaged in the Business. The Company wishes to employ the
Employee, and the Employee wishes to be employed by the Company, as the
Company’s President. As a condition of that employment, the Company requires
that an employment agreement be entered into pursuant to which the Employee
furnishes the Company with, among other things, certain covenants.

 

B.            Execution and
delivery of this Agreement is a condition precedent to the Company’s
consummation of the acquisition contemplated by the Asset Purchase Agreement.

 

C.            The Employee
acknowledges that as a member of the Company’s management, he is one of the
persons charged with primary responsibility for the implementation of the
Company’s business plans, and that he will have regular access to various trade
secrets and other confidential and/or proprietary information relating to the
Company and its Business.

 

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing recitals, and the
mutual agreements herein contained and other good and valuable consideration,
the receipt and sufficiency of which are hereby mutually acknowledged, the
parties hereby agree as follows:

 

ARTICLE
I

EMPLOYMENT
RELATIONSHIP

 

1.1          Employment. Subject to the terms and
conditions of this Agreement, the Company hereby agrees to employ the Employee
to serve as the Company’s President, and the Employee hereby accepts such
employment, and agrees to perform his duties
and responsibilities to the best of his abilities in a diligent, trustworthy,
businesslike and efficient manner.

 

1.2          Duties.
The Employee shall have the normal and customary duties, responsibilities and
authority of a company President and shall perform such other duties on behalf
of the Company and its affiliates as may be assigned to him by Quixote
Corporation management.  In connection
with the Employee’s performance of his duties, he shall report to Leslie J.
Jezuit, or in specific instances, to Mr. Jezuit’s designee.

 

1.3          Exclusive Employment.
While he is employed by the Company hereunder, the Employee covenants to the
Company that he will devote his entire business time, energy, attention and
skill to the Company (except for permitted vacation periods and reasonable
periods of illness or other incapacity), and use his good faith best efforts to
promote the interests of the Company. The foregoing shall not be construed as
prohibiting the Employee from spending such time as may be reasonably necessary
to attend to his personal affairs and investments so long as such activities do
not conflict or interfere with the Employee’s obligations and/or timely
performance of his duties to the Company and its affiliates hereunder.

 

1.4          Employee Representations.
The Employee hereby represents and warrants to the Company that:

 

(a)           the
execution, delivery and performance by the Employee of this Agreement and any
other agreements contemplated hereby to which the Employee is a party do not
and shall not conflict with, breach, violate or cause a default under any
contract, agreement, instrument, order, judgment or decree to which the
Employee is a party or by which he is bound;

 

(b)           the
Employee is not a party to or bound by any employment agreement, noncompetition
agreement or confidentiality agreement with any other person or entity (or if a
party to such an agreement, the Employee has

 

2

 

disclosed the material terms thereof to Leslie J. Jezuit prior to the
execution hereof and promptly after the date hereof shall deliver a copy of
such agreement to Leslie J. Jezuit); and

 

(c)           upon
the execution and delivery of this Agreement by the Company, this Agreement
shall be the valid and binding obligation of the Employee, enforceable in
accordance with its terms.

 

The Employee hereby acknowledges and represents that he has consulted
with independent legal counsel regarding his rights and obligations under this
Agreement and that he fully understands the terms and conditions contained
herein.

 

ARTICLE
II

PERIOD
OF EMPLOYMENT

 

2.1          Employment Period. The
Employee’s employment hereunder shall commence on the date hereof and shall
continue hereunder until the date fixed by the provisions of Section 2.2
hereof, subject to the early termination provisions of Article V hereof (the “Employment
Period”).

 

2.2          Employment Period.
The Employment Period shall commence on the date hereof and end on the second
anniversary of the date hereof (the “Term”).

 

ARTICLE
III

COMPENSATION

 

3.1          Annual Base Compensation. During the
Employment Period the Company shall pay to the Employee an annual base salary
(the “Annual
Base Compensation”) in the amount of $200,000.  The Annual Base Compensation shall be paid
in regular installments in accordance with the Company’s general payroll
practices, and shall be subject to all required federal, state and local
withholding taxes. The Employee’s Annual Base Compensation shall be reviewed
annually by the Quixote Corporation Board of Directors in consultation with the
Chief Executive Officer and may, in the discretion of the Board be increased,
provided that there shall be no obligation on the part of the Company to
increase the Employee’s Annual Base Compensation.

 

3.2          Performance Bonus. The
Company will develop a performance bonus plan for the Employee based on
targeted sales and profit levels.

 

3.3          Expenses.
During the Employment Period, the Employee shall be entitled to reimbursement
of all travel, entertainment and other business expenses reasonably incurred in
the performance of his duties for the Company, upon submission of all receipts
and accounts with respect thereto, and approval by the

 

3

 

Company thereof, in accordance with the business expense reimbursement
policies of the Company.  In addition,
the Employee shall be entitled to a car allowance of $500 per month and a
living expense allowance of $3,000 per month.

 

3.4          Vacation. In respect of each calendar
year falling within the Employment Period, the Employee shall be entitled to
such vacation time as the Company customarily provides to its other employees
who are in senior executive positions.

 

3.5          Other Fringe Benefits.
During the Employment Period, the Employee shall be entitled to participate in
Quixote Corporation’s employee pension and welfare benefit plans for which he
is eligible under the terms of those plans and which are made available to
employees of subsidiaries of Quixote Corporation who are in senior executive
positions, subject to the phase-in of such benefits.

 

ARTICLE
IV

COVENANTS
OF THE EMPLOYEE

 

4.1          Proprietary Rights.
The Employee hereby expressly agrees that all research, discoveries, inventions
and innovations (whether or not reduced to practice or documented),
improvements, developments, methods, designs, analyses, drawings, reports and
all similar or related information (whether patentable or unpatentable, and
whether or not reduced to writing), trade secrets (being information about the
business of the Company which is considered by the Company to be confidential
and is proprietary to the Company) and confidential information, copyrightable
works, and similar and related information (in whatever form or medium), which
(x) either (i) relate to the Company’s actual or anticipated business, research
and development or existing or future products or services or (ii) result from
any work performed by the Employee for the Company and (y) are conceived,
developed, made or contributed to in whole or in part by the Employee during
the Employment Period (“Work Product”) shall be and remain the sole
and exclusive property of the Company. The Employee shall communicate promptly
and fully all Work Product to the Board.

 

(a)  Ownership of Inventions.  Employee
agrees to communicate to the Company as promptly and full as practicable all
Inventions (as defined below) conceived or reduced to practice by him (alone or
jointly by others) at any time during his employment by the Company or
thereafter.  Employee hereby assigns to
the Company and/or its nominee all his right, title and interest in such
Inventions, and all of his right, title and interest in any patents,
copyrights, patent applications, or copyright applications based thereon.  Employee will assist the Company and/or its
nominee (without charge but at no expense to him) at any time and in every
proper way to obtain for its own benefit, patents and copyright registrations
for all such

 

4

 

Inventions anywhere in the world and to enforce its and/or their rights
in legal proceedings.

 

As used in this Agreement, the term “Inventions” includes, but is not
limited to, all discoveries, improvements, processes, developments, designs,
know-how, data, computer programs and formulae, whether patentable or unpatentable,
made or conceived at the Company’s request or the Company’s premises. Any
provision in this Agreement requiring Employee to assign his rights in any
Invention does not apply to an Invention which qualifies under the provisions
of Section 2870 of the California Labor Code. 
That section provides that the requirement to assign

 

“shall not apply to an invention that the employee developed entirely
on his or her own time without using the Company’s equipment, supplies,
facilities, or trade secret information except for those inventions that either
(1) relate at the time of conception or reduction to practice of the invention
to the Company’s business, or actual or demonstrably anticipated research or
development of the Company; or (2) result from any work performed by the
employee for the Company.”

 

Employee understands that he bears the burden of proving that an
Invention qualifies under Section 2870.

 

Notwithstanding the foregoing, Employee also assigns to the Company (or
to its nominee) all rights which he may have or acquire in any Invention, full
title to which is required to be in the United States by a contract between the
Company and the United States or any of its agencies.

 

Employee hereby irrevocably designates and appoints the Company and
each of its duly authorized officers and agents as his agent and
attorney-in-fact to act for and in his behalf and stead to execute and file any
document and to do all other lawfully permitted acts to further the
prosecution, issuance and enforcement of patents, copyright registrations and
other proprietary rights with the same force and effect as if executed and
delivered by him.

 

(b)           Work Made for Hire.
The Employee acknowledges that, unless otherwise agreed in writing by the
Company, all Work Product eligible for any form of copyright protection made or
contributed to in whole or in part by the Employee within the scope of the
Employee’s employment by the Company during the Employment Period shall be
deemed a “work made for hire” under the copyright laws and shall be owned by
the Company.

 

5

 

(c)           Assignment of Proprietary Rights.
The Employee hereby assigns, transfers and conveys to the Company, and shall
assign, transfer and convey to the Company, all right, title and interest in
and to all inventions, ideas, improvements, designs, processes, trademarks,
service marks, trade names, trade secrets, trade dress, data, discoveries and
other proprietary assets and proprietary rights in and of the Work Product (the
“Proprietary
Rights”) for the Company’s exclusive ownership and use, together
with all rights to sue and recover for past and future infringement or
misappropriation thereof.

 

(d)           Further Instruments. At
the request of the Company at all times during the Employment Period and
thereafter, the Employee will promptly and fully assist the Company in
effecting the purpose of the foregoing assignment, including but not limited to
the further acts of executing any and all documents necessary to secure for the
Company such Proprietary Rights and other rights to all Work Product and all
confidential information related thereto, providing cooperation and giving
testimony.

 

(e)           Inapplicability of Section 4.1 In
Certain Circumstances. The Company expressly
acknowledges and agrees that, and the Employee is hereby advised that, this
Section 4.1 does not apply to any invention for which no equipment, supplies,
facilities or trade secret information of the Company was used and which was
developed entirely on the Employee’s own time, unless (i) the invention
relates to the business of the Company or to the Company’s actual or
demonstrably anticipated research or development or (ii) the invention results
from any work performed by the Employee for the Company.

 

4.2          Ownership and Covenant to Return Documents, etc.
The Employee agrees that all Work Product and all documents or other tangible
materials (whether originals, copies or abstracts), including without
limitation, price lists, quotation guides, outstanding quotations, books, records,
manuals, files, sales literature, training materials, customer records,
correspondence, computer disks or print-out documents, contracts, orders,
messages, phone and address lists, invoices and receipts, and all objects
associated therewith, which in any way relate to the business or affairs of the
Company either furnished to the Employee by the Company or are prepared,
compiled or otherwise acquired by the Employee during the Employment Period,
shall be the sole and exclusive property of the Company. The Employee shall
not, except for the use of the Company, use, copy or duplicate any of the
aforementioned documents or objects, nor remove them from the facilities of the
Company, nor use any information concerning them except for the benefit of the Company,
either during the Employment Period or thereafter. The Employee agrees that he
will deliver all of the aforementioned documents and objects that may be in his
possession to the Company on the termination of his employment with the
Company, or at any other time upon the Company’s request.

 

6

 

4.3          Non-Disclosure Covenant. During
the Employment Period and at all times thereafter, the Employee shall not,
either directly or indirectly, disclose to any “unauthorized person” or use for
the benefit of the Employee or any person or entity other than the Company any
Work Product or any knowledge or information which the Employee may acquire
while employed by the Company or the Acquired Company (whether before or after
the date of this Agreement) relating to (i) the financial, marketing, sales and
business plans and affairs, financial statements, analyses, forecasts and
projections, books, accounts, records, operating costs and expenses and other
financial information of the Company, the Acquired Company or the Business of
the Acquired Company; (ii) internal management tools and systems, costing
policies and methods, pricing policies and methods and other methods of doing
business of the Company, the Acquired Company or the Business of the Acquired
Company; (iii) customers, sales, customer requirements and usages, distributor
lists of the Company, the Acquired Company or the Business of the Acquired
Company; (iv) agreements with customers, vendors, independent contractors,
employees and others of the Company, the Acquired Company or the Business of
the Acquired Company; (v) existing and future products or services and product
development plans, designs, analyses and reports of the Company, the Acquired
Company or the Business of the Acquired Company; (vi) computer software and
data bases developed for the Company, the Acquired Company or the Business of
the Acquired Company, trade secrets, research, records of research, models,
designs, drawings, technical data and reports of the Company, the Acquired
Company or the Business of the Acquired Company; and (vii) correspondence or
other private or confidential matters, information or data whether written,
oral or electronic, which is proprietary to the Company, the Acquired Company
or the Business of the Acquired Company, and not generally known to the public
(individually and collectively “Confidential Information”), without the
Company’s prior written permission. For purposes of this Section 4.3, the term
“unauthorized
person”  shall mean any person who is not (i) an
officer or director of the Company or an employee of the Company for whom the
disclosure of the knowledge or information referred to herein is necessary for
his performance of his assigned duties; (ii) an employee, officer or director
of a Parent or affiliate of the Company for whom the disclosure of the
knowledge or information referred to herein is necessary for his performance of
his assigned duties; or (iii) a person expressly authorized by the Company to receive
disclosure of such knowledge or information. The Company expressly acknowledges
and agrees that the term “Confidential Information” excludes information which
is (A) in the public domain or otherwise generally known to the trade; (B)
disclosed to third parties other than by reason of the Employee’s breach of his
confidentiality obligation hereunder; or (C) learned of by the Employee
subsequent to the termination of his employment hereunder from any other party
not then under an obligation of confidentiality to the Company. Further, the
Employee covenants to the Company that in the Employee’s performance of his
duties hereunder, the Employee will violate no confidentiality obligations he
may have to any third persons.

 

7

 

4.4          Anti-Pirating and Non-Interference
Covenants. The Employee covenants to the Company that while the
Employee is employed by the Company hereunder he will not, for any reason,
directly or indirectly solicit, hire, or otherwise do any act or thing which
may induce any other employee of the Company to leave the employ or otherwise
interfere with or adversely affect the relationship (contractual or otherwise)
of the Company with any person who is then or thereafter becomes an employee of
the Company.  The Employee further
covenants that during his employment and for a two (2) year period thereafter
(the “Nonsolicitation Period”),
he will not, for any reason, directly or indirectly, do any act or thing which
may interfere with or adversely affect the relationship (contractual or
otherwise) of the Company with any customer or vendor of the Company or induce
any such customer or vendor to cease doing business with the Company.

 

4.5          Remedies For Breach.
If the Employee commits a breach, or threatens to commit a breach, of any of
the provisions of this Article IV, the Company shall have the right and remedy,
in addition to any other remedy that may be available at law or in equity, to
have the provisions of this Article IV specifically enforced by any court
having equity jurisdiction, together with an accounting therefore, it being
expressly acknowledged and agreed by the Employee that any such breach or
threatened breach will cause irreparable injury to the Company and that money
damages will not provide an adequate remedy to the Company. Such injunction
shall be available without the posting of any bond or other security, and the
Employee hereby consents to the issuance of such injunction. The Employee
further agrees that any such injunctive relief obtained by the Company shall be
in addition to, and not in lieu of, monetary damages and any other remedies to
which the Company may be entitled. Further, in the event of an alleged breach
or violation by the Employee of any of the provisions of Section 4.4 hereof,
the Nonsolicitation Period shall be tolled until such breach or violation has
been cured. The parties agree that in the event of the institution of any
action at law or in equity by either party to enforce the provisions of this
Article IV, the losing party shall pay all of the costs and expenses of the
prevailing party, including reasonable legal fees, incurred in connection
therewith. If any covenant contained in this Article IV or any part thereof is
hereafter construed to be invalid or unenforceable, the same shall not affect
the remainder of such covenant or any other covenants, which shall be given
full effect, without regard to the invalid portions, and any court having
jurisdiction shall have the power to modify such covenant to the least extent
necessary to render it enforceable and, in its modified form, said covenant
shall then be enforceable.

 

ARTICLE
V

TERMINATION
OF EMPLOYMENT

 

5.1          Termination and Triggering Events.
Notwithstanding anything to the contrary elsewhere contained in this Agreement,
the Employment Period shall

 

8

 

terminate at the expiration of the Term, or prior to the expiration of
the Term upon the occurrence of any of the following events (hereinafter
referred to as “Triggering Events”): (a) the Employee’s death; (b) the
Employee’s Total Disability; (c) the Employee’s Resignation; (d) a Termination
by the Company for Cause; or (e) a Termination by the Company Without Cause.

 

5.2          Rights Upon Occurrence of a
Triggering Event. Subject to the provisions of
Section 5.3 hereof, the rights of the parties upon the occurrence of a
Triggering Event prior to the expiration of the Term shall be as follows:

 

(a)           Resignation and Termination by the
Company for Cause: If the Triggering Event was the
Employee’s Resignation or a Termination by the Company for Cause, the Employee
shall be entitled to receive his Annual Base Compensation and accrued but
unpaid vacation through the date thereof in accordance with the policy of the
Company, and to continue to participate in the Company’s health, insurance and
disability plans and programs through that date and thereafter, only to the
extent permitted under the terms of such plans and programs.

 

(b)           Death or Total Disability: If
the Triggering Event was the Employee’s death or Total Disability, the Employee
(or the Employee’s designated beneficiary) shall be entitled to receive the
Employee’s Annual Base Compensation and accrued but unpaid vacation through the
date thereof, and to continue to participate in the Company’s health, insurance
and disability plans and programs through the date of termination and
thereafter only to the extent permitted under the terms of such plans and
programs.

 

(c)           Termination by Company Without
Cause: If the Triggering Event was a Termination
by the Company Without Cause, the Employee shall be entitled to receive his
Annual Base Compensation and accrued but unpaid vacation through the date
thereof  plus
for each month of the Severance Period the Employee shall also be paid an
amount equal to one-twelfth (1/12th) of an amount equal to the sum
of his then current Annual Base Compensation (the “Severance Benefit”); provided
that the Employee shall be entitled to receive such Severance Benefit during
the Severance Period if and only if the Employee has executed and delivered to
the Company a General Release provided by the Company and only so long as the
Employee has not breached any of his covenants to the Company set forth in
Article IV of this Agreement.

 

(d)           Cessation of Entitlements and Company Right of Offset.
Except as otherwise expressly provided herein, all of the Employee’s rights to
salary, employee benefits, fringe benefits and bonuses hereunder (if any) which
would otherwise accrue after the termination of the Employment

 

9

 

Period shall cease upon the date of such termination. The Company may
offset any loans, cash advances or fixed amounts which the Employee owes the
Company against any amounts it owes the Employee under this Agreement.

 

5.3          Survival of Certain Obligations. The
provisions of Articles IV, VI and VIII shall survive any termination of the
Employment Period, whether by reason of the occurrence of a Triggering Event or
the expiration of the Term. Immediately following the termination of the
Employment Period, the Employee shall promptly return to the Company all
property required to be returned to the Company pursuant to the provisions of
Section 4.2 hereof.

 

ARTICLE
VI

ASSIGNMENT

 

6.1          Prohibition of Assignment by Employee.
The Employee expressly agrees for himself and on behalf of his executors,
administrators and heirs, that this Agreement and his obligations, rights,
interests and benefits hereunder shall not be assigned, transferred, pledged or
hypothecated in any way by the Employee, his executors, administrators or
heirs, and shall not be subject to execution, attachment or similar process.
Any attempt to assign, transfer, pledge, hypothecate or otherwise dispose of
this Agreement or any such rights, interests and benefits thereunder contrary
to the foregoing provisions, or the levy of any attachment or similar process
thereupon shall be null and void and without effect and shall relieve the
Company of any and all liability hereunder.

 

6.2          Right of Company to Assign. This
Agreement shall be assignable and transferable by the Company to any successor-in-interest
without the consent of the Employee.

 

ARTICLE VII

DEFINITIONS

 

“Board”
means the Board of Directors of the Company.

 

“Resignation”
means the voluntary termination of employment hereunder by the Employee.

 

“Severance
Period” means the period immediately following the
date of a Termination by the Company Without Cause and the second anniversary
hereof.

 

“Termination
by the Company for Cause” means termination by the Company of the
Employee’s employment for:

 

10

 

(i)            misappropriation
of any significant monies or significant assets or properties of the Company;

 

(ii)           conviction
of a felony or a crime involving moral turpitude;

 

(iii)          substantial
and repeated failure to comply with directions of any superior;

 

(iv)          gross
negligence or willful misconduct;

 

(v)           chronic
alcoholism or drug addiction together with the Employee’s refusal to cooperate
with or participate in counseling and/or
treatment of same; or

 

(vi)          any willful action or inaction of the
Employee which, in the reasonable opinion of the Board, constitutes dereliction
(willful neglect or willful abandonment of assigned duties), or a material breach
of Company policy or rules which, if susceptible to cure, is not cured by the
Employee within five (5) days following the Employee’s receipt of written
notice from the Company advising the Employee with reasonable specificity as to
the action or inaction viewed by the Board to be dereliction or a material
breach of Company policy or rules.

 

“Termination
by the Company Without Cause” means a termination of the Employee’s
employment by the Company which is not a Termination by the Company for Cause.

 

“Total
Disability” means the Employee’s inability, because of illness,
injury or other physical or mental incapacity, to perform his duties hereunder
(as determined by the Board in good faith) for a continuous period of one
hundred eighty (180) consecutive days, or for a total of one hundred eighty
(180) days within any three hundred sixty (360) consecutive day period, in
which case such Total Disability shall be deemed to have occurred on the last
day of such one hundred eighty (180) day or three hundred sixty (360) day
period, as applicable.

 

ARTICLE
VIII

GENERAL

 

8.1          Notices.
All notices under this Agreement shall be in writing and shall be deemed
properly sent, (i) when delivered, if by personal service or reputable
overnight courier service, or (ii) when received, if sent (x) by certified or
registered mail, postage prepaid, return receipt requested, or (y) via
facsimile transmission (provided that a hard copy of such notice is sent to the
addressee via one of the methods of delivery or mailing set forth above on the
same day the facsimile transmission is sent); to the recipient at the address
indicated below:

 

11

 

 

Notices to Employee:

 

Gary Coury

 

 

 

 

Notices to Company:

 

Joan R. Riley, Esq.

Quixote Corporation

One E. Wacker Drive, Suite 3000

Chicago, IL 60601

Facsimile (312) 467-0197

 

With Copies to:

 

Anne Hamblin Schiave, Esq.

Holland & Knight LLC

131 S. Dearborn Street, 30th Floor

Chicago, IL 60603

Facsimile (312) 578-6666

 

8.2          Governing Law.
This Agreement shall be subject to and governed by the laws of the State of
California without regard to any choice of law or conflicts of law rules or
provisions (whether of the State of California or any other jurisdiction),
irrespective of the fact that the Employee may become a resident of a different
state.

 

8.3          Binding Effect. The Agreement shall be
binding upon and inure to the benefit of the Company, its successors and
assigns, and the Employee and his executors, administrators, personal
representatives and heirs.

 

8.4          Complete Understanding. This Agreement
constitutes the complete understanding among the parties hereto with regard to
the subject matter hereof, and supersedes any and all prior agreements and
understandings relating to the employment of the Employee by the Company.

 

8.5          Amendments. No change, modification or
amendment of any provision of this Agreement shall be valid unless made in
writing and signed by all of the parties hereto.

 

12

 

8.6          Waiver. The waiver by the Company of a
breach of any provision of this Agreement by the Employee shall not operate or
be construed as a waiver of any subsequent breach by the Employee. The waiver
by the Employee of a breach of any provision of this Agreement by the Company
shall not operate as a waiver of any subsequent breach by the Company.

 

8.7          Venue, Jurisdiction, Etc. The Employee
hereby agrees that any suit, action or proceeding relating in any way to this
Agreement may be brought and enforced in the Los Angeles County Superior Court
of the State of California or in the District Court of the United States of
America for the Central District of California, and in either case the Employee
hereby submits to the jurisdiction of each such court. The Employee hereby waives
and agrees not to assert, by way of motion or otherwise, in any such suit,
action or proceeding, any claim that the Employee is not personally subject to
the jurisdiction of the above-named courts, that the suit, action or proceeding
is brought in an inconvenient forum or that the venue of the suit, action or
proceeding is improper. The Employee consents and agrees to service of process
or other legal summons for purpose of any such suit, action or proceeding by
registered mail addressed to the Employee at his or her address listed in the
business records of the Company. Nothing contained herein shall affect the
rights of the Company to bring suit, action or proceeding in any other
appropriate jurisdiction. The Employee and the Company do each hereby waive any
right to trial by jury, he or it may have concerning any matter relating to
this Agreement.

 

8.8          Severability. If any portion of this
Agreement shall be for any reason, invalid or unenforceable, the remaining
portion or portions shall nevertheless be valid, enforceable and carried into
effect.

 

8.9          Headings.
The headings of this Agreement are inserted for convenience only and are not to
be considered in the construction of the provisions hereof.

 

8.10        Counterparts.
This Agreement may be executed in one or more counterparts, all of which, taken
together, shall constitute one and the same agreement.

 

[Signature page to follow]

 

13

 

IN
WITNESS WHEREOF, the Company has caused this Agreement
to be signed by its duly authorized officers and its corporate seal to be
hereunto affixed, and the Employee has hereunto set his hand on the day and
year first above written.

 

	
  COMPANY:

  	
   

  	
  EMPLOYEE:

  
	
   

  	
   

  	
   

  
	
  GREEN LIGHT ACQUISITION COMPANY

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Leslie J. Jezuit

  	
   

  	
  /s/ Gary J. Coury

  
	
  Its:

  	
  President_

  	
   

  	
  Gary Coury

  
					

 

CHO1 #1256486 v4

 

14Exhibit

10.13

 

CREDIT AGREEMENT

 

Dated as of May 16,

2003

 

among

 

QUIXOTE CORPORATION

as the Borrower

 

THE INSTITUTIONS FROM

TIME TO TIME PARTIES HERETO AS LENDERS

 

and

 

THE NORTHERN TRUST

COMPANY

as Administrative Agent

 

LASALLE BANK NATIONAL

ASSOCIATION

Co-Agent

 

 

TABLE OF CONTENTS

 

	

  Section

  	

   

  
	

   

  
	

  ARTICLE

  I:  DEFINITIONS

  
	

   

  	

  1.1

  	

  Certain

  Defined Terms

  
	

   

  	

  1.2

  	

  References

  
	

   

  	

   

  	

   

  
	

  ARTICLE

  II:  REVOLVING LOAN AND TERM LOAN FACILITIES

  
	

   

  	

  2.1

  	

  Revolving Loans

  
	

   

  	

  2.2

  	

  Term Loans

  
	

   

  	

  2.3

  	

  Rate Options for all

  Advances; Maximum Interest Periods

  
	

   

  	

  2.4

  	

  Optional

  Payments; Mandatory Prepayments/Repayments

  
	

   

  	

  2.5

  	

  Reduction

  of Commitments

  
	

   

  	

  2.6

  	

  Method of

  Borrowing

  
	

   

  	

  2.7

  	

  Method of Selecting Types

  and Interest Periods for Advances

  
	

   

  	

  2.8

  	

  Minimum

  Amount of Each Advance

  
	

   

  	

  2.9

  	

  Method of Selecting Types,

  and Interest Periods for Conversion and Continuation of Advances

  
	

   

  	

  2.10

  	

  Default Rate

  
	

   

  	

  2.11

  	

  Method of

  Payment

  
	

   

  	

  2.12

  	

  Evidence of

  Debt

  
	

   

  	

  2.13

  	

  Telephonic

  Notices

  
	

   

  	

  2.14

  	

  Promise to

  Pay; Interest and Facility Fees; Interest Payment Dates; Interest and Fee

  Basis; Taxes

  
	

   

  	

  2.15

  	

  Notification

  of Advances, Interest Rates, Prepayments and Aggregate Revolving Loan

  Commitment Reductions

  
	

   

  	

  2.16

  	

  Lending

  Installations

  
	

   

  	

  2.17

  	

  Non-Receipt

  of Funds by the Administrative Agent

  
	

   

  	

  2.18

  	

  Termination

  Date

  
	

   

  	

  2.19

  	

  Replacement of Certain

  Lenders

  
	

   

  	

  2.20

  	

  Judgment

  Currency

  
	

   

  	

  2.21

  	

  Increase

  of Aggregate Revolving Loan Commitment

  
	

   

  	

   

  	

   

  
	

  ARTICLE

  III:  THE LETTER OF CREDIT FACILITY

  
	

   

  	

  3.1

  	

  Obligation to

  Issue Letters of Credit

  
	

   

  	

  3.2

  	

  Transitional Letters of

  Credit

  
	

   

  	

  3.3

  	

  Types and

  Amounts

  
	

   

  	

  3.4

  	

  Conditions

  
	

   

  	

  3.5

  	

  Procedure for

  Issuance of Letters of Credit

  
	

   

  	

  3.6

  	

  Letter of Credit

  Participation

  
	

   

  	

  3.7

  	

  Reimbursement

  Obligation

  
	

   

  	

  3.8

  	

  Letter

  of Credit Fees

  
	

   

  	

  3.9

  	

  Issuing Bank

  Reporting Requirements

  
	

   

  	

  3.10

  	

  Indemnification;

  Exoneration

  
				

 

ii

 

	

  ARTICLE IV:  CHANGE IN CIRCUMSTANCES

  
	

   

  	

  4.1

  	

  Yield

  Protection

  
	

   

  	

  4.2

  	

  Changes in Capital

  Adequacy Regulations

  
	

   

  	

  4.3

  	

  Availability of Types

  of Advances

  
	

   

  	

  4.4

  	

  Funding

  Indemnification

  
	

   

  	

  4.5

  	

  Lender

  Statements; Survival of Indemnity

  
	

   

  	

   

  	

   

  
	

  ARTICLE V:  CONDITIONS PRECEDENT

  
	

   

  	

  5.1

  	

  Initial Advances

  and Letters of Credit

  
	

   

  	

  5.2

  	

  Each Advance and

  Letter of Credit

  
	

   

  	

   

  	

   

  
	

  ARTICLE

  VI:  REPRESENTATIONS AND WARRANTIES

  
	

   

  	

  6.1

  	

  Organization; Corporate Powers

  
	

   

  	

  6.2

  	

  Authority; Enforceability

  
	

   

  	

  6.3

  	

  No Conflict; Governmental Consents

  
	

   

  	

  6.4

  	

  Financial

  Statements

  
	

   

  	

  6.5

  	

  No Material Adverse Change

  
	

   

  	

  6.6

  	

  Taxes

  
	

   

  	

  6.7

  	

  Litigation; Loss Contingencies and

  Violations

  
	

   

  	

  6.8

  	

  Subsidiaries

  
	

   

  	

  6.9

  	

  ERISA

  
	

   

  	

  6.10

  	

  Accuracy

  of Information

  
	

   

  	

  6.11

  	

  Securities

  Activities

  
	

   

  	

  6.12

  	

  Material

  Agreements.

  
	

   

  	

  6.13

  	

  Compliance

  with Laws

  
	

   

  	

  6.14

  	

  Assets

  and Properties

  
	

   

  	

  6.15

  	

  Statutory

  Indebtedness Restrictions

  
	

   

  	

  6.16

  	

  Labor Matters

  
	

   

  	

  6.17

  	

  Environmental

  Matters

  
	

   

  	

  6.18

  	

  Insurance

  
	

   

  	

  6.19

  	

  Use of Proceeds

  
	

   

  	

  6.20

  	

  Solvency

  
	

   

  	

   

  	

   

  
	

  ARTICLE

  VII:  COVENANTS

  
	

   

  	

  7.1

  	

  Reporting

  
	

   

  	

  7.2

  	

  Affirmative

  Covenants

  
	

   

  	

  7.3

  	

  Negative

  Covenants

  
	

   

  	

  7.4

  	

  Financial

  Covenants

  
	

   

  	

   

  	

   

  
	

  ARTICLE

  VIII:  DEFAULTS

  
	

   

  	

  8.1

  	

  Defaults

  
	

   

  	

   

  	

   

  
	

  ARTICLE

  IX:  ACCELERATION, DEFAULTING LENDERS;

  WAIVERS, AMENDMENTS AND REMEDIES

  
	

   

  	

  9.1

  	

  Termination

  of Revolving Loan Commitments; Acceleration

  
	

   

  	

  9.2

  	

  Preservation

  of Rights

  
	

   

  	

  9.3

  	

  Amendments

  

 

iii

 

	

  ARTICLE X:  GENERAL PROVISIONS

  
	

   

  	

  10.1

  	

  Survival of Representations

  
	

   

  	

  10.2

  	

  Governmental

  Regulation

  
	

   

  	

  10.3

  	

  Intentionally

  Omitted

  
	

   

  	

  10.4

  	

  Headings

  
	

   

  	

  10.5

  	

  Entire

  Agreement

  
	

   

  	

  10.6

  	

  Several

  Obligations; Benefits of this Agreement

  
	

   

  	

  10.7

  	

  Expenses; Indemnification

  
	

   

  	

  10.8

  	

  Numbers

  of Documents

  
	

   

  	

  10.9

  	

  Confidentiality

  
	

   

  	

  10.10

  	

  Severability of Provisions

  
	

   

  	

  10.11

  	

  Nonliability

  of Lenders

  
	

   

  	

  10.12

  	

  GOVERNING LAW

  
	

   

  	

  10.13

  	

  CONSENT

  TO JURISDICTION; SERVICE OF PROCESS: JURY TRIAL

  
	

   

  	

  10.14

  	

  Subordination of

  Intercompany Indebtedness

  
	

   

  	

   

  	

   

  
	

  ARTICLE XI:  THE ADMINISTRATIVE AGENT

  
	

   

  	

  11.1

  	

  Appointment; Nature

  of Relationship

  
	

   

  	

  11.2

  	

  Powers

  
	

   

  	

  11.3

  	

  General

  Immunity

  
	

   

  	

  11.4

  	

  No Responsibility for

  Loans, Creditworthiness, Recitals, Etc

  
	

   

  	

  11.5

  	

  Action on

  Instructions of Lenders

  
	

   

  	

  11.6

  	

  Employment of

  Administrative Agent and Counsel

  
	

   

  	

  11.7

  	

  Reliance

  on Documents; Counsel

  
	

   

  	

  11.8

  	

  The

  Administrative Agent’s Reimbursement and Indemnification

  
	

   

  	

  11.9

  	

  Rights as a

  Lender

  
	

   

  	

  11.10

  	

  Lender

  Credit Decision

  
	

   

  	

  11.11

  	

  Successor Administrative

  Agent

  
	

   

  	

  11.12

  	

  No

  Duties Imposed Upon Co-Agent

  
	

   

  	

  11.13

  	

  Notice of

  Default

  
	

   

  	

  11.14

  	

  Delegation

  to Affiliates

  
	

   

  	

  11.15

  	

  Subordination

  Agreement and Subsidiary Guaranty

  
	

   

  	

   

  	

   

  
	

  ARTICLE

  XII:  SETOFF, RATABLE PAYMENTS

  
	

   

  	

  12.1

  	

  Setoff

  
	

   

  	

  12.2

  	

  Ratable

  Payments

  
	

   

  	

  12.3

  	

  Application

  of Payments

  
	

   

  	

  12.4

  	

  Relations Among

  Lenders

  
	

   

  	

  12.5

  	

  Representations

  and Covenants Among Lenders

  
	

   

  	

   

  	

   

  
	

  ARTICLE

  XIII:  BENEFIT OF AGREEMENT;

  ASSIGNMENTS; PARTICIPATIONS

  
	

   

  	

  13.1

  	

  Successors

  and Assigns; Designated Lenders

  
	

   

  	

  13.2

  	

  Participations

  
	

   

  	

  13.3

  	

  Assignments

  
	

   

  	

  13.4

  	

  Dissemination of

  Information

  
	

   

  	

  13.5

  	

  Tax

  Certifications

  

 

iv

 

	

  ARTICLE

  XIV:  NOTICES

  
	

   

  	

  14.1

  	

  Giving Notice

  
	

   

  	

  14.2

  	

  Change of

  Address

  
	

   

  	

   

  	

   

  
	

  ARTICLE

  XV:  COUNTERPARTS

  

 

v

 

EXHIBITS AND SCHEDULES

 

Exhibits

 

	

  EXHIBIT A

  	

  —

  	

  Revolving Loan and Term Commitments (Definitions)

  
	

   

  	

   

  	

   

  
	

  EXHIBIT A-1

  	

  —

  	

  Eurodollar and Domestic Payment Offices

  (Definitions)

  
	

   

  	

   

  	

   

  
	

  EXHIBIT B

  	

  —

  	

  Form of Borrowing/Election Notice

  (Section 2.2, Section 2.7 and Section 2.9)

  
	

   

  	

   

  	

   

  
	

  EXHIBIT C

  	

  —

  	

  Form of Request for Letter of Credit (Section 3.4)

  
	

   

  	

   

  	

   

  
	

  EXHIBIT D

  	

  —

  	

  Form of Assignment Agreement

  (Definitions and Section 13.3)

  
	

   

  	

   

  	

   

  
	

  EXHIBIT E

  	

  —

  	

  Form of Borrower’s Counsel’s Opinion (Section 5.1)

  
	

   

  	

   

  	

   

  
	

  EXHIBIT F

  	

  —

  	

  List of Closing Documents (Section 5.1)

  
	

   

  	

   

  	

   

  
	

  EXHIBIT G-1

  	

  —

  	

  Form of Officer’s Certificate (Sections 5.2 and

  7.1(A)(iii))

  
	

   

  	

   

  	

   

  
	

  EXHIBIT G-2

  	

  —

  	

  Secretary’s Certificate (Borrower)

  
	

   

  	

   

  	

   

  
	

  EXHIBIT G-3

  	

  —

  	

  Secretary’s Certificate (Subsidiary Guarantors)

  
	

   

  	

   

  	

   

  
	

  EXHIBIT H

  	

  —

  	

  Form of Compliance Certificate

  (Sections 5.2 and 7.1(A)(iii))

  
	

   

  	

   

  	

   

  
	

  EXHIBIT I

  	

  —

  	

  Form of Revolving Loan Note

  (Section 2.12(D))

  
	

   

  	

   

  	

   

  
	

  EXHIBIT J

  	

  —

  	

  Form of Term Loan Note

  
	

   

  	

   

  	

   

  
	

  EXHIBIT K

  	

  —

  	

  Form of Subordination Agreement

  
	

   

  	

   

  	

   

  
	

  EXHIBIT L

  	

  —

  	

  Form of Designation Agreement (Section 13.1(B))

  
	

   

  	

   

  	

   

  
	

  EXHIBIT M

  	

  —

  	

  Form of Commitment and Acceptance (Section 2.22)

  
	

   

  	

   

  	

   

  
	

  EXHIBIT N

  	

  —

  	

  Subsidiary Guaranty Agreement

  
	

   

  	

   

  	

   

  
	

  EXHIBIT O

  	

  —

  	

  Extension Request

  

 

vi

 

	

  Schedules

  
	

   

  	

   

  	

   

  
	

  Schedule 1. 1.1

  	

  —

  	

  Permitted Existing Indebtedness (Definitions)

  
	

   

  	

   

  	

   

  
	

  Schedule 1.1.2

  	

  —

  	

  Permitted Existing Investments (Definitions)

  
	

   

  	

   

  	

   

  
	

  Schedule 1.1.3

  	

  —

  	

  Permitted Existing Liens (Definitions)

  
	

   

  	

   

  	

   

  
	

  Schedule 1.1.4

  	

  —

  	

  Permitted Existing Contingent Obligations

  (Definitions)

  
	

   

  	

   

  	

   

  
	

  [Schedule 3.2

  	

  —

  	

  Transitional Letters of Credit (Section 3.2)]

  
	

   

  	

   

  	

   

  
	

  Schedule 6.3

  	

  —

  	

  Conflicts: Governmental Consents (Section 6.3)

  
	

   

  	

   

  	

   

  
	

  Schedule 6.7

  	

  —

  	

  Litigation

  
	

   

  	

   

  	

   

  
	

  Schedule 6.8

  	

  —

  	

  Subsidiaries (Section 6.8)

  
	

   

  	

   

  	

   

  
	

  Schedule 6.9

  	

  —

  	

  ERISA (Section 6.9)

  
	

   

  	

   

  	

   

  
	

  Schedule 6.17

  	

  —

  	

  Environmental Matters (Section 6.17)

  

 

vii

 

CREDIT AGREEMENT

 

This CREDIT AGREEMENT, dated as of May 16, 2003,

is entered into by and among QUIXOTE CORPORATION, a Delaware corporation, as

the Borrower, THE INSTITUTIONS FROM TIME TO TIME PARTIES HERETO, as Lenders

whether by execution of this Agreement or an Assignment Agreement pursuant to Section

13.3, and THE NORTHERN TRUST COMPANY, as Administrative Agent for itself

and the other Lenders. The parties hereto agree as follows:

 

ARTICLE I:  DEFINITIONS

 

1.1                                 Certain Defined Terms.  The following terms used in this Agreement

shall have the following meanings, applicable both to the singular and the

plural forms of the terms defined.

 

As used in this Agreement:

 

“Accounting Changes” is defined in Section

10.9 hereof.

 

“Acquisition” means any transaction, or any

series of related transactions, consummated on or after the date of this

Agreement, by which the Borrower or any of its Subsidiaries (other than

transactions involving solely the Borrower and its Subsidiaries) (i) acquires

any going business or all or substantially all of the assets of any firm,

corporation or division thereof, whether through purchase of assets, merger or

otherwise or (ii) directly or indirectly acquires (in one transaction or as the

most recent transaction in a series of transactions) at least a majority (in

number of votes) of the securities of a corporation which have ordinary voting

power for the election of directors (other than securities having such power

only by reason of the happening of a contingency) or a majority (by percentage

of voting power) of the outstanding Equity Interests of another Person.

 

“Administrative Agent” means The Northern Trust

Company in its capacity as contractual representative for itself and the

Lenders pursuant to Article XI hereof and any successor Administrative

Agent appointed pursuant to Article XI hereof.

 

“Advance” means a borrowing hereunder

consisting of the aggregate amount of the several Loans made by the Lenders to

the Borrower of the same Type and, in the case of Eurodollar Rate Advances for

the same Interest Period.

 

“Affected Lender” is defined in Section 2.19

hereof.

 

“Affiliate” of any Person means any other

Person directly or indirectly controlling, controlled by or under common

control with such Person. A Person shall be deemed to control another Person if

the controlling Person is the “beneficial owner” (as defined in Rule 13d-3

under the Securities Exchange Act of 1934) of greater than or equal to twenty

percent (20%) or more of any class of voting securities (or other voting

interests) of the controlled Person or possesses, directly or indirectly, the

power to direct or cause the direction of the 

 

management or policies of

the controlled Person, whether through ownership of Capital Stock, by contract

or otherwise.

 

“Aggregate Revolving Loan Commitment” means the

aggregate of the Revolving Loan Commitments of all the Lenders, as may be

increased or reduced from time to time pursuant to the terms hereof.  The initial Aggregate Revolving Loan

Commitment is Fifty Million and 00/100 Dollars ($50,000,000.00).

 

“Aggregate Term Loan Commitment” means the

aggregate of the Term Loan Commitments of all Lenders.  The initial Aggregate Term Loan Commitment

is Twenty Million and 00/100 Dollars ($20,000,000.00).

 

“Agreement” means this Credit Agreement, as it

may be amended, restated or otherwise modified and in effect from time to

time.

 

“Alternate Base Rate” means, for any day, a

fluctuating rate of interest per annum equal to the higher of (i) the

Prime Rate for such day and (ii) the sum of (a) the Federal Funds

Effective Rate for such day and (b) one-half of one percent (0.50%) per

annum.

 

“Applicable ABR Margin” means, as at any date

of determination, the rate per annum then applicable to Floating Rate Loans

determined in accordance with the provisions of Section 2.14(D)(ii)

hereof.

 

“Applicable Eurodollar Margin” means, as at any

date of determination, the rate per annum then applicable to Eurodollar Rate

Loans determined in accordance with the provisions of Section 2.14(D)(ii)

hereof.

 

“Applicable Commitment Fee Percentage” means,

as at any date of determination, the rate per annum then applicable in the

determination of the amount payable under Section 2.14(C)(i) hereof

determined in accordance with the provisions of Section 2.14(D)(ii)

hereof.

 

“Applicable L/C Fee Percentage” means, as at

any date of determination, a rate per annum used to calculate Letter of Credit

fees equal to the Applicable Eurodollar Margin then in effect.

 

“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.

 

“Assignment Agreement” means an assignment and

acceptance agreement entered into in connection with an assignment pursuant to Section 13.3

hereof in substantially the form of Exhibit D.

 

“Asset Sale” means, with respect to any Person,

the sale, lease, conveyance, disposition or other transfer by such Person of

any of its assets (including by way of a sale-leaseback transaction, and

including the sale or other transfer of any of the Equity Interests of any

Subsidiary of such Person) to any Person other than the Borrower or any of its

Subsidiaries 

 

2

 

other than (i) the

sale of inventory in the ordinary course of business, and (ii) the sale or

other disposition of any obsolete, excess, damaged or worn-out equipment

disposed of in the ordinary course of business and (ii) assignments and

licenses of intellectual property of the Borrower and its Subsidiaries in the

ordinary course of business.

 

“Authorized Officer” means any of the

President, Chief Executive Officer, Chief Financial Officer or Treasurer of the

Borrower, acting singly.

 

“Benefit Plan” means a defined benefit plan as

defined in Section 3(35) of ERISA (other than a Multiemployer Plan) in

respect of which the Borrower or any other member of the Controlled Group is,

or within the immediately preceding six (6) years was, an “employer” as

defined in Section 3(5) of ERISA.

 

“Borrower” means Quixote Corporation, together

with its successors and permitted assigns, including a debtor-in-possession on

behalf of the Borrower.

 

“Borrowing Date” means a date on which an

Advance or Term Loan is made hereunder.

 

“Borrowing/Election Notice” is defined in Section 2.7

hereof.

 

“Business Day” means:

 

(a)                                  for

the purpose of determining the Eurodollar Rate, a day other than a Saturday or

Sunday on which banks are open for the transaction of domestic and foreign

exchange business in London, England;

 

(b)                                 for

the purpose of any payment to be made in Dollars, a day other than a Saturday

or Sunday on which banks are open in Chicago, Illinois, and New York,

New York for the conduct of substantially all of their commercial lending

activities, including the transaction of domestic and foreign exchange

business, interbank wire transfers can be made on the Fedwire system, and

dealings in Dollars are carried on in the London interbank markets; and

 

(c)                                  for

any other purpose, means a day (i) other than a Saturday or Sunday on

which banks are open in Chicago, Illinois, and New York, New York for

the conduct of substantially all of their commercial lending activities,

including the transaction of domestic and foreign exchange business, and

interbank wire transfers can be made on the Fedwire system.

 

“Buying Lender” is defined in Section 2.22

hereof.

 

“Capital Expenditures” shall mean, with respect

to any Person, all expenditures by such Person which are required to be

capitalized in accordance with GAAP, provided capital expenditures relating

solely to Acquisitions effected by an asset purchase agreement shall be

excluded.

 

3

 

“Capital Stock” means (i) in the case of a

corporation, corporate stock, (ii) in the case of an association or

business entity, any and all shares, interests, participations, rights or other

equivalents (however designated) of corporate stock, (iii) in the case of

a limited liability company, membership interests, (iv) in the case of a

partnership, partnership interests (whether general or limited) and

(v) any other interest or participation that confers on a Person the right

to receive a share of the profits and losses of, or distributions of assets of,

the issuing Person; provided, however, that “Capital Stock” shall

not include any debt securities convertible into equity securities prior to

such conversion.

 

“Capitalized Lease” of a Person means any lease

of property by such Person as lessee which would be capitalized on a balance

sheet of such Person prepared in accordance with GAAP.

 

“Capitalized Lease Obligations” of a Person

means the amount of the obligations of such Person under Capitalized Leases

which would be capitalized on a balance sheet of such Person prepared in

accordance with GAAP.

 

“Cash Equivalents” means (i) marketable

direct obligations issued or unconditionally guaranteed by the governments of

the United States and backed by the full faith and credit of the United States

government; (ii) domestic and Eurocurrency certificates of deposit and

time deposits, bankers’ acceptances and floating rate certificates of deposit

issued by any commercial bank organized under the laws of the United States, any

state thereof, the District of Columbia, any foreign bank, or its branches or

agencies, the long-term indebtedness of which institution at the time of

acquisition is rated BBB (or better) by S&P or Fitch or Baa (or better) by

Moody’s, and which certificates of deposit and time deposits are fully

protected against currency fluctuations for any such deposits with a term of

more than ninety (90) days; (iii) shares of money market, mutual or

similar funds having assets in excess of $100,000,000 and the investments of

which are limited to investment grade securities (i.e., securities rated BBB

(or better) by S&P or Fitch or Baa (or better) by Moody’s: and

(iv) commercial paper of United States and foreign banks and bank holding

companies and their subsidiaries and United States and foreign finance,

commercial industrial or utility companies which, at the time of acquisition,

are rated A-2 (or better) by S&P, P-2 (or better) by Moody’s, or F-2 (or

better) by Fitch; provided that the maturities of such Cash Equivalents

shall not exceed three hundred sixty-five (365) days from the date of

acquisition thereof.

 

“Change” is defined in Section 4.2 hereof.

 

“Change of Control” means an event or series of

events by which:

 

(a)                                  any

“person” or “group” (as such terms are used in Sections 13(d) and 14(d) of

the Securities Exchange Act of 1934), becomes the “beneficial owner” (as

defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of

1934, provided that a person shall be deemed to have “beneficial ownership” of

all securities that such person has the right to acquire, whether such right is

exercisable immediately or only after the passage of time), directly or

indirectly, of thirty percent (30%) or more of the combined voting power

of the Borrower’s outstanding Capital Stock ordinarily having the right to vote

at an election of directors; or

 

4

 

(b) the majority of the

board of directors of the Borrower fails to consist of Continuing Directors; or

 

(c) the Borrower

consolidates with or merges into another corporation or conveys, transfers or

leases all or substantially all of its property to any Person, in either event

pursuant to a transaction in which the outstanding Capital Stock of the

Borrower is reclassified or changed into or exchanged for cash, securities or

other property.

 

“Closing Date” means May 16, 2003.

 

“Code” means the Internal Revenue Code of 1986,

as amended, reformed or otherwise modified from time to time.

 

“Commission” means the Securities and Exchange

Commission of the United States of America and any Person succeeding to the

functions thereof.

 

“Commitment and Acceptance” is defined in Section 2.21

hereof.

 

“Commitment Increase Notice” is defined in Section 2.21

hereof.

 

“Consolidated Assets” means the total assets of

the Borrower and its Subsidiaries on a consolidated basis (determined in

accordance with GAAP).

 

“Consolidated Interest Expense” means the

interest expense of the Borrower and its Subsidiaries calculated on a

consolidated basis (determined, subject to the foregoing parenthetical, in

accordance with GAAP).

 

“Consolidated Net Worth” means, at a particular

date, all amounts which would be included under shareholders’ equity (including

capital stock, additional paid-in capital and retained earnings) on the

consolidated balance sheet for the Borrower and its consolidated Subsidiaries

determined in accordance with GAAP.

 

“Contaminant” means any pollutant, hazardous

substance, toxic substance, hazardous waste, special waste, petroleum or petroleum-derived

substance, asbestos, polychlorinated biphenyls (“PCBs”), or any constituent of

any such substance, and includes but is not limited to these terms as defined

in Environmental, Health or Safety Requirements of Law.

 

“Contingent Obligation”, as applied to any

Person, means any Contractual Obligation, contingent or otherwise, of that

Person with respect to any Indebtedness of another or other obligation or

liability of another, including, without limitation, any such Indebtedness,

obligation or liability of another directly or indirectly guaranteed, endorsed

(otherwise than for collection or deposit in the ordinary course of business),

co-made or discounted or sold with recourse by that Person, or in respect of

which that Person is otherwise directly or indirectly liable, including

Contractual Obligations (contingent or otherwise) arising through any agreement

to purchase, repurchase, or otherwise acquire such Indebtedness, obligation or

liability or any security therefor, or to provide funds for the payment or

discharge thereof (whether in the form of loans, advances, stock purchases,

capital contributions or otherwise), or to maintain solvency, assets, level of

income, or other financial condition, or to make payment

 

5

 

other than for value received.  The amount of any Contingent Obligation

shall be equal to the present value of the portion of the obligation so

guaranteed or otherwise supported, in the case of known recurring obligations,

and the maximum reasonably anticipated liability in respect of the portion of

the obligation so guaranteed or otherwise supported assuming such Person is

required to perform thereunder, in all other cases.

 

“Continuing Director” means, with respect to

the Borrower as of any date of determination, any member of the board of

directors of the Borrower who (a) was a member of such board of directors

on the date of this Agreement, or (b) was nominated for election or

elected to such board of directors with the approval of the Continuing

Directors who were members of such board at the time of such nomination or

election.

 

“Contractual Obligation”, as applied to any

Person, means any provision of any equity or debt securities issued by that

Person or any indenture, mortgage, deed of trust, security agreement, pledge

agreement, guaranty, contract, undertaking, agreement or instrument, in any

case in writing, to which that Person is a party or by which it or any of its

properties is bound, or to which it or any of its properties is subject.

 

“Controlled Group” means the group consisting

of (i) any corporation which is a member of the same controlled group of

corporations (within the meaning of Section 414(b) of the Code) as the

Borrower; (ii) a partnership or other trade or business (whether or not

incorporated) which is under common control (within the meaning of

Section 414(c) of the Code) with the Borrower; and (iii) a member of

the same affiliated service group (within the meaning of Section 414(m) of

the Code) as the Borrower, any corporation described in clause (i) above or any

partnership or trade or business described in clause (ii) above.

 

“Customary Permitted Liens” means:

 

(i)                                     Liens

(other than Environmental Liens and Liens in favor of the PBGC) with respect to

the payment of taxes, assessments or governmental charges in all cases which

are not yet due and payable or (if foreclosure, distraint, sale or other

similar proceedings shall not have been commenced or any such proceeding after

being commenced is stayed) which are being contested in good faith by

appropriate proceedings properly instituted and diligently conducted and with

respect to which adequate reserves or other appropriate provisions are being

maintained, which reserves and provisions shall be maintained in accordance

with generally accepted accounting principles as in effect from time to time,

if and to the extent that such GAAP so require;

 

(ii)                                  statutory

Liens of landlords and Liens of suppliers, mechanics, carriers, materialmen,

warehousemen or workmen and other similar Liens imposed by law created in the

ordinary course of business for amounts not yet due or which are being

contested in good faith by appropriate proceedings properly instituted and

diligently conducted and with respect to which adequate reserves or other

appropriate provisions are being maintained, which reserves and provisions

shall be maintained in accordance with generally accepted accounting principles

as may be in effect from time to time, if and to the extent that such

generally accepted accounting principles so require;

 

6

 

(iii)                               Liens

(other than Environmental Liens and Liens in favor of the IRS or the PBGC)

incurred or deposits made in the ordinary course of business in connection with

workers’ compensation, unemployment insurance or other types of social security

benefits or to secure the performance of bids, tenders, sales, contracts (other

than for the repayment of borrowed money), surety, appeal and performance

bonds; provided that (A) all such Liens do not in the aggregate materially

detract from the value of the Borrower’s or such Subsidiary’s assets or

property taken as a whole or materially impair the use thereof in the operation

of the businesses taken as a whole and (B) all Liens securing bonds to

stay judgments or in connection with appeals do not secure at any time an

aggregate amount exceeding $1,000,000;

 

(iv)                              Liens

arising with respect to zoning restrictions, easements, encroachments,

licenses, reservations, covenants, rights-of-way, utility easements, building

restrictions and other similar charges, restrictions or encumbrances on the use

of real property which do not in any case materially detract from the value of

the property subject thereto or materially interfere with the ordinary use or

occupancy of the real property or with the ordinary conduct of the business of

the Borrower or any of its Subsidiaries;

 

(v)                                 Liens

of attachment or judgment with respect to judgments, writs or warrants of

attachment, or similar process against the Borrower or any of its Subsidiaries

which do not constitute a Default under Section 8.1(H) hereof;

 

(vi)                              any

interest or title of the lessor in the property subject to any operating lease

entered into by the Borrower or any of its Subsidiaries in the ordinary course

of business; and

 

(vii)                           financing

statements of a lessor’s rights in and to the property leased to the Borrower

or one of the Subsidiaries relating to leases permitted by this Agreement.

 

“Default” means an event described in Article VIII

hereof.

 

“Designated Lender” means, with respect to each

Designating Lender, each Eligible Designee designated by such Designating

Lender pursuant to Section 13.1(B).

 

“Designating Lender” means, with respect to

each Designated Lender, the Lender that designated such Designated Lender

pursuant to Section 13.1(B).

 

“Designation Agreement” is defined in Section

13.1(B).

 

“Disqualified Stock” means any Capital Stock

that, by its terms (or by the terms of any security into which it is

convertible or for which it is exchangeable), or upon the happening of any

event, matures or is mandatorily redeemable, pursuant to a sinking fund

obligation or otherwise, or redeemable at the option of the holder thereof, in

whole or in part, on or prior to the date that is ninety-one (9l) days after

the Revolving Loan Termination Date.

 

7

 

“DOL” means the United States Department of

Labor and any Person succeeding to the functions thereof.

 

“Dollar” and “$” means dollars in the

lawful currency of the United States of America.

 

“Dollar Amount” of any currency at any date

shall mean (i) the amount of such currency if such currency is Dollars or

(ii) the Equivalent Amount of Dollars if such currency is any currency

other than Dollars.

 

“Domestic Incorporated Subsidiary” means a

Subsidiary of the Borrower organized under the laws of a jurisdiction located

in the United States of America.

 

“EBITDA” means, for any period, on a

consolidated basis for the Borrower and its Subsidiaries, the sum of the

amounts for such period, without duplication, of (i) Net Income, plus

(ii) Interest Expense to the extent deducted in computing Net Income, plus

(iii) charges against income for foreign, federal, state and local taxes

to the extent deducted in computing Net Income, plus

(iv) depreciation expense to the extent deducted in computing Net Income, plus

(v) amortization expense, including, without limitation, amortization of

goodwill and other intangible assets to the extent deducted in computing Net

Income, plus (vi) any unusual non-cash charges to the extent

deducted in computing Net Income, minus (vii) any unusual non-cash gains

to the extent added in computing Net Income. 

EBITDA shall be calculated on a pro  forma basis giving

effect to future acquisitions and Asset Sales on a last twelve (12)

months’ basis using, for any Permitted Acquisition, historical financial

statements.

 

“Effective Commitment Amount” is defined in Section 2.21

hereof.

 

“Eligible Designee” means a special purpose

corporation, partnership, trust, limited partnership or limited liability

company that is administered by the respective Designating Lender or an

Affiliate of such Designating Lender and (i) is organized under the laws

of the United States of America or any state thereof, (ii) is engaged

primarily in making, purchasing or otherwise investing in commercial loans in

the ordinary course of its business and (iii) issues (or the parent of

which issues) commercial paper rated at least A-1 or the equivalent thereof by

S&P or P-1 or the equivalent thereof by Moody’s.

 

“Environmental Health or Safety Requirements of Law”

means all Requirements of Law derived from or relating to foreign, federal,

state and local laws or regulations relating to or addressing pollution or

protection of the environment, or protection of worker health or safety,

including, but not limited to, the Comprehensive Environmental Response,

Compensation and Liability Act, 42 U.S.C. § 9601 et  seq.,

the Occupational Safety and Health Act of 1970, 29 U.S.C. § 651 et

seq., and the Resource Conservation and Recovery Act of 1976, 42 U.S.C.

§ 6901 et  seq., in each case including any amendments

thereto, any successor statutes, and any regulations or guidance promulgated

thereunder, and any state or local equivalent thereof.

 

“Environmental Lien” means a lien in favor of

any Governmental Authority for (a) any liability under Environmental,

Health or Safety Requirements of Law, or (b) damages arising from, or

costs incurred by such Governmental Authority in response to, a Release or

threatened Release of a Contaminant into the environment.

 

8

 

“Environmental Property Transfer Act” means any

applicable requirement of law that conditions, restricts, prohibits or requires

any notification or disclosure triggered by the closure of any property or the

transfer, sale or lease of any property or deed or title for any property for

environmental reasons, including, but not limited to, any so-called “Industrial

Site Recovery Act” or “Responsible Property Transfer Act.”

 

“Equity Interests” means Capital Stock and all

warrants, options or other rights to acquire Capital Stock (but excluding any

debt security that is convertible into, or exchangeable for, Capital Stock).

 

“ERISA” means the Employee Retirement Income

Security Act of 1974, as amended from time to time including (unless the

context otherwise requires) any rules or regulations promulgated thereunder.

 

“Eurodollar Base Rate” means, with respect to a

Eurodollar Rate Loan for the relevant Interest Period, a rate of interest equal

to the per annum rate of interest at which United States dollar deposits in an

amount comparable to  the amount of the

relevant Eurodollar Loan and for a period equal to the relevant Interest Period

are offered generally to the Administrative Agent (rounded upward if necessary,

to the nearest 1/16 of 1.00%) in the London Interbank Eurodollar market at

11:00 a.m. (London time) two Business Days prior to the commencement of each

Interest Period less the maximum reserve percentages for determining

reserves to be maintained by member banks of the Federal Reserve System for

Eurodollar liabilities, or as the Eurodollar Rate is otherwise determined by

the Administrative Agent in its sole and absolute discretion, (as per written

notice provided to the Borrower) such rate to remain fixed for such Interest

Period.  The Administrative Agent’s

determination of the Eurodollar Rate shall be conclusive, absent manifest

error.

 

“Eurodollar Payment Office” of the Administrative

Agent shall mean any agency, branch or Affiliate of the Administrative Agent,

specified as the “Eurodollar Payment Office” on Exhibit A-1 hereto

or such other agency, branch, Affiliate or correspondence bank of the

Administrative Agent, as it may from time to time specify to the Borrower

and each Lender as its Eurodollar Payment Office.

 

“Eurodollar Rate” means, with respect to a

Eurodollar Rate Loan for the relevant Interest Period, the Eurodollar Base Rate

applicable to such Interest Period plus the Applicable Eurodollar Margin then

in effect.

 

“Eurodollar Rate Advance” means an Advance

which bears interest at the Eurodollar Rate.

 

“Eurodollar Rate Loan” means a Loan made on a

fully syndicated basis pursuant to Section 2.1 or Section 2.2,

which bears interest at the Eurodollar Rate.

 

“Federal Funds Effective Rate” means, for any

day, an interest 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 for such day (or,

if such day is not a Business Day, for the immediately preceding Business Day)

by the Federal Reserve Bank of New York, or, if such rate is not so

published for any day which is a 

 

9

 

Business Day, the average

of the quotations at approximately 10:00 a.m. (Chicago time) on such day

on such transactions received by the Administrative Agent from three (3)

Federal funds brokers of recognized standing selected by the Administrative

Agent in its sole discretion.

 

“Fitch” means Fitch Investors Service, L.P.,

together with its successors and assigns.

 

“Fixed-Rate Loan” means any Eurodollar Rate

Loan bearing a fixed rate of interest for the applicable Interest Period.

 

“Floating Rate” means, for any day for any

Loan, a rate per annum equal to the Alternate Base Rate for such day, changing

when and as the Alternate Base Rate changes, plus the Applicable ABR Margin

then in effect.

 

“Floating Rate Advance” means an Advance which

bears interest at the Floating Rate.

 

“Floating Rate Loan” means a Loan, or portion

thereof, which bears interest at the Floating Rate.

 

“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” shall mean generally accepted accounting

principles, using the accrual basis of accounting and consistently applied with

prior periods, provided, however, that GAAP with respect to any interim

financial statements or reports shall be deemed subject to fiscal year-end

adjustments and footnotes made in accordance with GAAP.

 

“Governmental Acts” is defined in Section 3.10(A)

hereof.

 

“Governmental Authority” means any nation or

government, any federal, state, local or other political subdivision thereof

and any entity exercising executive, legislative, judicial, regulatory or

administrative authority or functions of or pertaining to government, including

any authority or other quasi-governmental entity established to perform any of

such functions.

 

“Hedging Agreements” is defined in Section 7.3(M)

hereof.

 

“Hedging Arrangements” is defined in the

definition of “Hedging Obligations” below.

 

“Hedging Obligations” of a Person means any and

all obligations of such Person, whether absolute or contingent and howsoever

and whensoever created, arising, evidenced or acquired (including all renewals,

extensions and modifications thereof and substitutions therefor), under

(i) any and all agreements, devices or arrangements designed to protect at

least one of the parties thereto from the fluctuations of interest rates,

commodity prices, exchange rates or forward rates applicable to such party’s

assets, liabilities or exchange transactions,

 

10

 

including, but not limited to, dollar-denominated or

cross-currency interest rate exchange agreements, forward currency exchange

agreements, interest rate cap or collar protection agreements, forward rate

currency or interest rate options, puts and warrants or any similar derivative

transactions (“Hedging Arrangements”), and (ii) any and all

cancellations, buy backs, reversals, terminations or assignments of any of the

foregoing.

 

“Indebtedness” of a Person means, without

duplication, such Person’s (i) obligations for borrowed money, including,

without limitation, subordinated indebtedness, (ii) obligations

representing the deferred purchase price of property or services (other than

accounts payable arising in the ordinary course of such person’s business

payable on terms customary in the trade and other than earn-outs or other

similar forms of contingent purchase prices), (iii) obligations, whether

or not assumed, secured by Liens on or payable out of the proceeds or

production from property or assets now or hereafter owned or acquired by such

Person, (iv) obligations which are evidenced by notes, acceptances, or

other instruments, (v) Capitalized Lease Obligations, (vi) Contingent

Obligations with respect to the Indebtedness of other Persons,

(vii) obligations with respect to letters of credit,

(viii) Off-Balance Sheet Liabilities, (ix) Disqualified Stock, and

(x) Hedging Obligations.  The

amount of Indebtedness of any Person at any date shall be without duplication

(i) the outstanding balance at such date of all unconditional obligations

as described above and the maximum liability of any such Contingent Obligations

at such date and (ii) in the case of Indebtedness of others secured by a

Lien to which the property or assets owned or held by such Person is subject,

the lesser of the fair market value at such date of any asset subject to a Lien

securing the Indebtedness of others and the amount of the Indebtedness secured.

 

“Indemnified Matters” is defined in Section 10.7(B)

hereof.

 

“Indemnitees” is defined in Section 10.7(B)

hereof.

 

“Interest Coverage Ratio” is defined in Section 7.4(C)

hereof.

 

“Interest Expense” means, without duplication,

for any period, the total interest expense of the Borrower and its consolidated

Subsidiaries, whether paid or accrued (including the interest component of

Capitalized Leases, commitment and letter of credit fees, Off-Balance Sheet

Liabilities and net payments or receipts (if any) pursuant to Hedging

Arrangements relating to interest rate protection), all as determined in

conformity with GAAP.

 

“Interest Period” means, with respect to a

Eurodollar Rate Loan, a period of one (1), two (2), three (3) or

six (6) months, commencing on a Business Day selected by the Borrower on

which a Eurodollar Rate Advance is made to the Borrower pursuant to this

Agreement.  Such Interest Period shall

end on (but exclude) the day which corresponds numerically to such date

one (1), two (2), three (3) or six (6) months thereafter; provided,

however, that if there is no such numerically corresponding day in such

next, second, third or sixth succeeding month, such Interest Period shall end

on the last Business Day of such next, second, third or sixth succeeding

month.  If an Interest Period would

otherwise end on a day which is not a Business Day, such Interest Period shall

end on the next succeeding Business Day, provided, however, that

if said next succeeding Business Day falls in a new calendar month, such

Interest Period shall end on the immediately preceding Business Day.

 

11

 

“Investment” means, with respect to any Person,

(i) any purchase or other acquisition by that Person of any Indebtedness,

Equity Interests or other securities, or of a beneficial interest in any

Indebtedness, Equity Interests or other securities, issued by any other Person,

(ii) any purchase by that Person of all or substantially all of the assets

of a business (whether of a division, branch, unit operation, or otherwise)

conducted by another Person, and (iii) any loan, advance (other than

deposits with financial institutions, prepaid expenses, accounts receivable,

advances to employees and similar items made or incurred in the ordinary course

of business) or capital contribution by that Person to any other Person,

including all Indebtedness to such Person arising from a sale of property by

such Person other than in the ordinary course of its business.

 

“IRS” means the Internal Revenue Service and

any Person succeeding to the functions thereof.

 

“Issuing Bank” means The Northern Trust Company

or any of its Affiliates, or any other Lender in its separate capacity as an

issuer of Letters of Credit pursuant to Section 3.1.

 

“Last Twelve-Month Period” means, with respect

to any fiscal quarter, the preceding four-fiscal quarter periods ending on the

last day of such fiscal quarter.

 

“L/C Documents” is defined in Section 3.4

hereof.

 

“L/C Draft” means a draft drawn on an Issuing

Bank pursuant to a Letter of Credit.

 

“L/C Interest” shall have the meaning ascribed

to such term in Section 3.6 hereof.

 

“L/C Obligations” means, without duplication,

an amount equal to the sum of (i) the aggregate of the Dollar Amount then

available for drawing under each of the Letters of Credit and (ii) the

aggregate outstanding Dollar Amount of all Reimbursement Obligations at such

time.

 

“Lender Increase Notice” is defined in Section 2.22

hereof.

 

“Lenders” means the lending institutions listed

on the signature pages of this Agreement or parties to Assignment Agreements

delivered pursuant to Section 13.3, including the Issuing Banks,

and each of their respective successors and assigns.

 

“Lending Installation” means, with respect to a

Lender or the Administrative Agent, any office, branch, subsidiary or affiliate

of such Lender or the Administrative Agent.

 

“Letter of Credit” means the standby letters of

credit (i) to be issued by the Issuing Banks pursuant to Section 3.1

hereof or (ii) deemed issued by an Issuing Bank pursuant to Section 3.2

hereof.

 

“Leverage Ratio” is defined in Section 7.4(A)

hereof.

 

12

 

“Lien” means any lien (statutory or other),

mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance

or preference, priority or security agreement or preferential arrangement of

any kind or nature whatsoever (including, without limitation, the interest of a

vendor or lessor under any conditional sale, Capitalized Lease or other title retention

agreement).

 

“Loan(s)” means, with respect to a Lender, such

Lender’s portion of any Advance made pursuant to Section 2.1

hereof, as applicable, and any Term Loan made pursuant to Section 2.2

hereof, and collectively, all Revolving Loans and Term Loans, whether made or

continued as or converted to Floating Rate Loans or Fixed-Rate Loans.

 

“Loan Documents” means this Agreement, any

promissory notes executed pursuant to Section 2.12(D), the

Subsidiary Guaranty, and all other documents. instruments, notes and agreements

executed in connection therewith or contemplated thereby, as the same

may be amended, restated or otherwise modified and in effect from time to

time.

 

“Margin Stock” shall have the meaning ascribed

to such term in Regulation U.

 

“Material Adverse Effect” means a material

adverse effect upon (a) the business, financial condition, operations,

affairs, assets, or properties of the Borrower, or the Borrower and its

Subsidiaries, taken as a whole, (b) the ability of the Borrower or any of

its Subsidiaries to perform its obligations under the Loan Documents in any

material respect, or (c) the ability of the Lenders or the Administrative

Agent to enforce in any material respect the Obligations.

 

“Moody’s” means Moody’s Investors Service.

Inc., together with its successors and assigns.

 

“Multiemployer Plan” means a “Multiemployer

Plan” as defined in Section 4001(a)(3) of ERISA which is, or within the

immediately preceding six (6) years was, contributed to by either the

Borrower or any member of the Controlled Group.

 

“Net Cash Proceeds” shall mean the gross cash

proceeds (including any cash received by way of deferred payment pursuant to a

promissory note, receivable or otherwise, but only as, when and to the extent

actually received) received from such event, net of transaction costs

(including, as applicable, any underwriting, brokerage or other customary

commissions and legal, advisory, accounting, investment banking and other fees

and expenses associated therewith) received from any such event.

 

“Net Income” means, for any period, the net

income (or loss) after taxes of the Borrower and its Subsidiaries on a

consolidated basis for such period taken as a single accounting period

determined in conformity with GAAP.

 

“Net Recovery Event Proceeds” shall mean, with

respect to any Recovery Event, the cash proceeds (net of costs and taxes

incurred in connection with such Recovery Event) received by the respective

Person in connection with such Recovery Event.

 

“Net Sale Proceeds” shall mean for any sale of

assets, the gross cash proceeds (including any cash received by way of deferred

payment pursuant to a promissory note,

 

13

 

receivable or otherwise, but only as, when and to the

extent actually received) received from any sale of assets, net of (i)

transaction costs (including, without limitation, any underwriting, brokerage

or other customary selling commissions and legal, advisory, accounting,

investment banking and other fees and expenses, including title and recording

expenses, associated therewith), (ii) payments of unassumed liabilities

relating to the assets sold at the time of, or within 180 days after, the date

of such sale, (iii) the amount of such gross cash proceeds required to be used

to repay any Indebtedness which is secured by the respective assets which were

sold, and (iv) the estimated marginal increase in income taxes which will be

payable by the Borrower’s consolidated group with respect to the fiscal year

(for U.S. federal income tax purposes) in which the sale occurs as a result of

such sale; but excluding any portion of any such gross cash proceeds which the

Borrower determines in good faith should be reserved for post-closing

adjustments (to the extent the Borrower delivers to the Lenders a certificate

signed by an Authorized Representative as to such determination), it being

understood and agreed that on the day that all such post-closing adjustments

have been determined (which shall not be later than one year following the date

of the respective asset sale), the amount (if any) by which the reserved amount

in respect of such sale or disposition exceeds the actual post-closing

adjustments paid by the Borrower or any of its Subsidiaries shall constitute

Net Sale Proceeds on such date received by the Borrower and/or any of its

Subsidiaries from such sale, leas, transfer or other disposition.

 

“Non-ERISA Commitments” means:

 

(i)                                     each

pension, medical, dental, life. accident insurance, disability, group

insurance, sick leave, profit sharing, deferred compensation, bonus, stock

option, stock purchase, retirement, savings, severance, stock ownership,

performance, incentive, hospitalization or other insurance, or other welfare,

benefit or fringe benefit plan, policy, trust, understanding or arrangement of

any kind; and

 

(ii)                                  each

employee collective bargaining agreement and each agreement, understanding or

arrangement of any kind, with or for the benefit of any present or prior

officer, director, employee or consultant (including, without limitation, each

employment. compensation, deterred compensation, severance or consulting

agreement or arrangement and any agreement or arrangement associated with a

change in ownership of the Borrower or any member of the Controlled Group);

 

to which the Borrower or any member of the Controlled

Group is a party or with respect to which the Borrower or any member of the

Controlled Group is or will be required to make any payment other than any

Plans.

 

“Northern Trust Credit Agreement” means the

Amended and Restated Loan Agreement, dated as of June 30, 1997 between The

Northern Trust Company, LaSalle Bank National Association and the Borrower, as

amended.

 

“Note(s)” means the Revolving Loan Note(s) and

Term Loan Note(s).

 

“Obligations” means all Loans, L/C Obligations,

advances, debts, liabilities, obligations, covenants and duties owing by the

Borrower or any of its Subsidiaries to the Administrative Agent, any Lender,

any Affiliate of the Administrative Agent or any Lender, the

 

14

 

Issuing Bank, or any Indemnitee, of any kind or

nature, present or future, arising under this Agreement, the L/C Documents, the

Subsidiary Guaranty, or any other Loan Document, whether or not evidenced by

any note, guaranty or other instrument, whether or not for the payment of

money, whether arising by reason of an extension of credit, loan, guaranty,

indemnification, or in any other manner, whether direct or indirect (including

those acquired by assignment), absolute or contingent, due or to become due,

now existing or hereafter arising and however acquired.  The term includes, without limitation, all

Hedging Obligations owing under Hedging Agreements to any Lender or any

Affiliate of any Lender, all interest, charges, expenses, fees, attorneys’ fees

and disbursements, paralegals’ fees (in each case whether or not allowed), and

any other sum chargeable to the Borrower or any of its Subsidiaries under this

Agreement or any other Loan Document.

 

“Obligor Group” means (a) the Borrower and

(b) the Subsidiary Guarantors.

 

“Off-Balance Sheet Liabilities” of a person

means (a) any repurchase obligations or liabilities of such Person or any of

its Subsidiaries with respect to Receivables or notes receivable sold by such

Person or any of its Subsidiaries, (b) any liabilities of such Person or

any of its Subsidiaries under any sale and leaseback transactions, (c) any

liabilities of such Person or any of its Subsidiaries under any financing lease

or so-called “synthetic” lease transaction, or (d) any obligations of such

Person or any of its Subsidiaries arising with respect to any other transaction

which is the functional equivalent of or takes the place of borrowing, but

which, in each of the cases of the foregoing clauses (a) through (d), does

not constitute a liability on the consolidated balance sheets of such Person

and its Subsidiaries.

 

“Other Taxes” is defined in Section 2.14(E)(ii)

hereof.

 

“Participants” is defined in Section 13.2(A)

hereof.

 

“Payment Date” means the last Business Day of

each March, June, September and December and the Termination Date.

 

“PBGC” means the Pension Benefit Guaranty

Corporation. or any successor thereto.

 

“Permitted Acquisition” is defined in Section 7.3(G)

hereof.

 

“Permitted Existing Contingent Obligations”

means the Contingent Obligations of the Borrower and its Subsidiaries

identified as such on Schedule 1.1.4 to this Agreement.

 

“Permitted Existing Indebtedness” means the

Indebtedness of the Borrower and its Subsidiaries identified as such on Schedule 1.1.1

to this Agreement.

 

“Permitted Existing Investments” means the

Investments of the Borrower and its Subsidiaries identified as such on Schedule 1.1.2

to this Agreement.

 

“Permitted Existing Liens” means the Liens on

assets of the Borrower and its Subsidiaries identified as such on Schedule 1.1.3

to this Agreement.

 

15

 

“Permitted Refinancing Indebtedness” means any

replacement, renewal, refinancing or extension of any Indebtedness permitted by

this Agreement that (i) does not exceed the aggregate principal amount

(plus accrued interest and any applicable premium and associated fees and

expenses) of the Indebtedness being replaced, renewed, refinanced or extended,

(ii) does not have a Weighted Average Life to Maturity at the time of such

replacement, renewal, refinancing or extension that is less than the Weighted

Average Life to Maturity of the Indebtedness being replaced, renewed,

refinanced or extended, (iii) does not rank at the time of such

replacement, renewal, refinancing or extension senior to the Indebtedness being

replaced, renewed, refinanced or extended, and (iv) does not contain terms

(including, without limitation, terms relating to security, amortization,

interest rate, premiums, fees, covenants, subordination, event of default and

remedies) materially less favorable to the Borrower than those applicable to

the Indebtedness being replaced, renewed, refinanced or extended.

 

“Person” means any individual, corporation,

firm, enterprise, partnership, trust. incorporated or unincorporated

association, joint venture, joint stock company, limited liability company or

other entity of any kind, or any government or political subdivision or any

agency, department or instrumentality thereof:

 

“Plan” means an employee benefit plan defined

in Section 3(3) of ERISA in respect of which the Borrower or any member of

the Controlled Group is, or within the immediately preceding six (6) years

was, an “employer” as defined in Section 3(5) of ERISA.

 

“Prime Rate” means a rate per annum equal to

the prime rate of interest announced from time to time by The Northern Trust

Company or its parent (which is not necessarily the lowest rate charged to any

customer), changing when and as said prime rate changes.

 

“Proposed New Lender” is defined in Section 2.22

hereof.

 

“Pro Rata Share” means, with respect to any

Lender, (i) in the case of the Revolving Loan Commitment, the percentage

obtained by dividing (x) such Lender’s Revolving Loan Commitment at such

time (in each case, as adjusted from time to time in accordance with the

provisions of this Agreement) by (y) the Aggregate Revolving Loan

Commitment at such time; provided, however, if all of the

Revolving Loan Commitments are terminated pursuant to the terms of this

Agreement, then “Pro Rata Share” means the percentage obtained by dividing

(x) the sum of (A) such Lender’s Revolving Loans, plus

(B) such Lender’s share of the obligations to purchase participations in

Letters of Credit, by (y) the sum of (A) the aggregate outstanding

amount of all Revolving Loans, plus (B) the aggregate outstanding

amount of all Letters of Credit and (ii) in the case of the Term Loan

Commitment, the percentage obtained by dividing (x) such Lender’s Term Loan

Commitment at such time (in each case, as adjusted from time to time in

accordance with the provisions of this Agreement) by (y) the Aggregate Term

Loan Commitment at such time; provided, however, if all of the

Term Loan Commitments are terminated pursuant to the terms of this Agreement,

then “Pro Rata Share” means the percentage obtained by dividing (x) the sum of

(A) such Lender’s Term Loans, by (y) the sum of (A) the aggregate outstanding

amount of all Term Loans.

 

16

 

“Purchasers” is defined in Section 13.3(A).

 

“Rate Option” means the Eurodollar Rate or the

Floating Rate, as applicable.

 

“Receivable(s)” means and includes all of the

Borrower’s and each Subsidiary’s presently existing and hereafter arising or

acquired accounts, accounts receivable, and all present and future rights of

the Borrower or such Subsidiary to payment for goods sold or leased or for

services rendered (except those evidenced by instruments or chattel paper),

whether or not they have been earned by performance, and all rights in any

merchandise or goods which any of the same may represent, and all rights,

title, security and guarantees with respect to each of the foregoing,

including, without limitation, any right of stoppage in transit.

 

“Recovery Event” shall mean the receipt by Borrower

or any of its Subsidiaries of any insurance or condemnation proceeds in excess

of $2,000,000 payable (i) by reason of theft, physical destruction or damage or

any other similar event with respect to any properties or assets of Borrower or

any of its Subsidiaries (whether under any policy of insurance required to be

maintained under Section 7.2(E) or otherwise), and (ii) by reason of any

condemnation, taking seizing or similar event with respect to any properties or

assets of Borrower or any of its Subsidiaries.

 

“Register” is defined in Section 13.3(D)

hereof.

 

“Regulation T” means Regulation T of

the Board of Governors of the Federal Reserve System as from time to time in

effect and any successor or other regulation or official interpretation of said

Board of Governors relating to the extension of credit by and to brokers and

dealers of securities for the purpose of purchasing or carrying margin stock

(as defined therein).

 

“Regulation U” means Regulation U of

the Board of Governors of the Federal Reserve System as from time to time in

effect and any successor or other regulation or official interpretation of said

Board of Governors relating to the extension of credit by banks, non-banks and

non-broker lenders for the purpose of purchasing or carrying Margin Stock

applicable to member banks of the Federal Reserve System.

 

“Regulation X” means Regulation X of

the Board of Governors of the Federal Reserve System as from time to time in

effect and any successor or other regulation or official interpretation of said

Board of Governors relating to the extension of credit by foreign lenders for

the purpose of purchasing or carrying margin stock (as defined therein).

 

“Reimbursement Obligation” is defined in Section 3.7

hereof.

 

“Release” means any release, spill, emission,

leaking, pumping, injection, deposit, disposal, discharge, dispersal, leaching

or migration into the indoor or outdoor environment, including the movement of

Contaminants through or in the air, soil, surface water or groundwater.

 

“Replacement Lender” is defined in Section 2.19

hereof.

 

17

 

“Reportable Event” means a reportable event as

defined in Section 4043 of ERISA and the regulations issued under such

section, with respect to a Plan, excluding, however, such events as to which

the PBGC by regulation waived the requirement of Section 4043(a) of ERISA

that it be notified within thirty (30) days after such event occurs.

 

“Request for Letter of Credit” is defined in Section 3.4(A)

hereof.

 

“Required Lenders” means Lenders whose Pro Rata

Shares, in the aggregate, are equal to or greater than sixty-six and two-thirds

percent (662/3%); provided,

however, that, if any of the Lenders shall have failed to fund its Pro

Rata Share of (i) any Revolving Loan requested by the Borrower,

(ii) any Revolving Loan required to be made in connection with

reimbursement for any L/C Obligations, which such Lenders are obligated to fund

under the terms of this Agreement, and any such failure has not been cured, then

for so long as such failure continues, “Required Lenders” means Lenders

(excluding all Lenders whose failure to fund their respective Pro Rata Shares

of such Revolving Loans or Term Loans has not been so cured) whose Pro Rata

Shares represent at least sixty-six and two-thirds percent (662/3%)

of the aggregate Pro Rata Shares of such Lenders; provided  further,

however, that, if the Revolving Loan Commitments have been terminated

pursuant to the terms of this Agreement, “Required Lenders” means

Lenders (without regard to such Lenders’ performance of their respective

obligations hereunder) whose aggregate ratable shares (stated as a percentage)

of the aggregate outstanding principal balance of all Loans and L/C Obligations

are at least sixty-six and two-thirds percent (662/3%).

 

“Requirements of Law” means, as to any Person,

the charter and by-laws or other organizational or governing documents of such

Person, and any law, rule or regulation, or determination of an arbitrator or a

court or other Governmental Authority, in each case applicable to or binding

upon such Person or any of its property or to which such Person or any of its

property is subject including, without limitation, the Securities Act, the

Securities Exchange Act of 1934, Regulations T, U and X, ERISA, the Fair

Labor Standards Act, the Worker Adjustment and Retraining Notification Act,

Americans with Disabilities Act of 1990, and any certificate of occupancy,

zoning ordinance, building, environmental or land use requirement or permit or

environmental, labor, employment, occupational safety or health law, rule or

regulation, including Environmental, Health or Safety Requirements of Law.

 

“Reserves” shall mean the maximum reserve

requirement, as prescribed by the Board of Governors of the Federal Reserve

System (or any successor) with respect to “Eurocurrency liabilities” or in

respect of any other category of liabilities which includes deposits by

reference to which the interest rate on Eurodollar Rate Loans is determined or

category of extensions of credit or other assets which includes loans by a

non-United States office of any Lender to United States residents.

 

“Restricted Payment” means (i) any

dividend or other distribution, direct or indirect, on account of any Equity

Interests of the Borrower now or hereafter outstanding, except a dividend

payable solely in the Borrower’s Capital Stock (other than Disqualified Stock)

or in options, warrants or other rights to purchase such Capital Stock,

(ii) any redemption, retirement, purchase or other acquisition for value,

direct or indirect, of any Equity Interests of the Borrower or any of its

Subsidiaries now or hereafter outstanding, other than in exchange for, or out

of the proceeds of, the substantially concurrent sale (other than to a

Subsidiary of the Borrower) of

 

18

 

other Equity Interests of the Borrower (other than

Disqualified Stock), provided, after giving effect to such redemption,

retirement, purchase or other acquisition, Borrower must demonstrate pro forma

availability under the Revolving Loan Commitment of $5,000,000 or more,

(iii) any redemption, purchase, retirement, defeasance, prepayment or

other acquisition for value, direct or indirect, of any Indebtedness

subordinated to the Obligations, and (iv) any payment of a claim for the

rescission of the purchase or sale of, or for material damages arising from the

purchase or sale of, any Indebtedness (other than the Obligations) or any

Equity Interests of the Borrower, or any of its Subsidiaries, or of a claim for

reimbursement, indemnification or contribution arising out of or related to any

such claim for damages or rescission.

 

“Revolving Credit Availability” means, at any

particular time, the amount by which (x) the Aggregate Revolving Loan Commitment

at such time exceeds (y) the Dollar Amount of the Revolving Credit

Obligations outstanding at such time.

 

“Revolving Credit Obligations” means, at any

particular time, the sum of (i) the outstanding principal amount of the

Revolving Loans at such time and (ii) the amount of the outstanding L/C

Obligations.

 

“Revolving Loan” is defined in Section 2.1

hereof.

 

“Revolving Loan Note” means the Revolving Loan

Note in the form of Exhibit I attached hereto.

 

“Revolving Loan Commitment” means, for each

Lender, the obligation of such Lender to make Revolving Loans and to purchase

participations in Letters of Credit in an aggregate amount not exceeding the

amount set forth on Exhibit A to this Agreement opposite its name

thereon under the heading “Revolving Loan Commitment” or the signature page of

the Assignment Agreement by which it became a Lender, as such amount

may be modified from time to time pursuant to the terms of this Agreement

or to give effect to any applicable Assignment Agreement.

 

“Revolving Loan Termination Date” means

May 16,2006, or such later date as extended pursuant to Section 2.1(D)

hereof.

 

“Risk-Based Capital Guidelines” is defined in Section 4.2

hereof.

 

“S&P” means Standard and Poor’s Ratings

Group, a division of The McGraw-Hill Companies, together with its successors

and assigns.

 

“Securities Act” means the Securities Act of

1933, as amended from time to time.

 

“Selling Lender” is defined in Section 2.22

hereof.

 

“Significant Domestic Incorporated Subsidiary”

means any Domestic Incorporated Subsidiary whose assets or sales represent more

than 10% of the Borrower’s and its Subsidiaries’ Consolidated Assets or

consolidated sales, with any determination of Consolidated Assets and

consolidated sales based upon amounts shown in the Borrower’s most recently

delivered annual consolidated financial statements.

 

19

 

“Significant Foreign Subsidiary” means a

Subsidiary of the Borrower that is not a Domestic Incorporated Subsidiary and

whose assets represent more than 3% of the Borrower’s and its Subsidiaries’

Consolidated Assets, with such determination of Consolidated Assets based upon

amounts shown in the Borrower’s most recently delivered annual consolidated

financial statements.

 

“Single Employer Plan” means a Plan maintained

by the Borrower or any member of the Controlled Group for employees of the

Borrower or any member of the Controlled Group.

 

“Subsidiary” of a Person means (i) any

corporation more than fifty percent (50%) of the outstanding securities

having ordinary voting power of which shall at the time be owned or controlled,

directly or indirectly, by such Person or by one or more of its Subsidiaries or

by such Person and one or more of its Subsidiaries, or (ii) any

partnership, limited liability company, association, joint venture or similar

business organization more than fifty percent (50%) of the ownership

interests having ordinary voting power of which shall at the time be so owned

or controlled.  Unless otherwise

expressly provided, all references herein to a “Subsidiary” means a Subsidiary

of the Borrower.

 

“Subordinated Note” means the Subordinated

Promissory Note, dated May 16, 2003 of Green Light Acquisition Company

payable in the principal amount of $5,000,000 to the order of U.S. Traffic

Corporation and Myers/Nuart Electrical Products, Inc. delivered pursuant to the

terms of the Asset Purchase Agreement, dated as of May 16, 2003.

 

“Subsidiary Guarantors” means (i) all of

the Borrower’s Significant Domestic Incorporated Subsidiaries as of the Closing

Date and (ii) all new Significant Domestic Incorporated Subsidiaries or

other Subsidiaries designated by Borrower which become Subsidiary Guarantors in

accordance with Section 7.2(K), together with their respective

successors and assigns.

 

“Subsidiary Guaranty” means that certain

Guaranty, dated as of the Closing Date, in form and substance substantially

similar to Exhibit I hereto, executed by the Subsidiary Guarantors

in favor of the Administrative Agent, for the ratable benefit of the Lenders

and the Issuing Banks (as it may be amended, modified, supplemented and/or

restated (including to add new Subsidiary Guarantors), and as in effect from

time to time), unconditionally guaranteeing all of the indebtedness,

obligations and liabilities of the Borrower arising under or in connection with

the Loan Documents.

 

“Taxes” is defined in Section 2.14(E)(i)

hereof.

 

“Term Loan” means a loan made available to the

Borrower pursuant to Section 2.2 hereof.

 

“Term Loan Commitment” means for each Lender,

the obligation of such Lender to make Term Loans in an aggregate amount not

exceeding the amount set forth on Exhibit A to this Agreement

opposite its name thereon under the heading “Term Loan Commitment” or the

signature page of the Assignment Agreement by which it became a Lender, as such

amount may be modified from time to time pursuant to the terms of this

Agreement or to give effect to any applicable Assignment Agreement.

 

20

 

“Term Loan Credit Obligation” means, at any

particular time, the outstanding principal Dollar Amount of the Term Loans at

such time.

 

“Term Loan Note” means the Term Loan Note in

the form of Exhibit J

 

“Term Loan Termination Date” means May 16,

2006, or such later date as extended pursuant to Section 2.2(D) hereof.

 

“Termination Date” means the earlier of

(a) the Revolving Loan Termination Date, (b) the Term Loan Termination

Date and (c) the date of termination in whole of the Aggregate Revolving

Loan Commitment pursuant to Section 2.5 hereof or the Revolving

Loan Commitments pursuant to Section 9.1 hereof.

 

“Termination Event” means (i) a Reportable

Event with respect to any Benefit Plan; (ii) the withdrawal of the

Borrower or any member of the Controlled Group from a Benefit Plan during a

plan year in which the Borrower or such Controlled Group member was a

“substantial employer” as defined in Section 4001(a)(2) of ERISA with

respect to such Plan; (iii) the imposition of an obligation under

Section 4041 of ERISA to provide affected parties written notice of intent

to terminate a Benefit Plan in a distress termination described in

Section 4041(c) of ERISA; (iv) the institution by the PBGC of

proceedings to terminate or appoint a trustee to administer a Benefit Plan; (v) any

event or condition which would constitute grounds under Section 4042 of

ERISA for the termination of, or the appointment of a trustee to administer,

any Benefit Plan; or (vi) the partial or complete withdrawal of the

Borrower or any member of the Controlled Group from a Multiemployer Plan.

 

“Transferee” is defined in Section 13.4.

 

“Type” means, with respect to any Loan, its

nature as a Floating Rate Loan or a Fixed- Rate Loan.

 

“Unfunded Liabilities” means (i) in the

case of Single Employer Plans, the amount (if any) by which the present value

of all vested nonforfeitable benefits under all Single Employer Plans exceeds

the fair market value of all such Plan assets allocable to such benefits, all

determined as of the then most recent valuation date for such Plans, and

(ii) in the case of Multiemployer Plans, the withdrawal liability that

would be incurred by the Controlled Group if all members of the Controlled

Group completely withdrew from all Multiemployer Plans.

 

“Unmatured Default” means an event which, but

for the lapse of time or the giving of notice, or both. would constitute a

Default.

 

“U.S. Traffic Acquisition” means Borrower’s

acquisition of certain assets of U.S. Traffic Corporation pursuant to the Asset

Purchase Agreement, dated as of May 16, 2003, between the Green Light

Acquisition Company, U.S. Traffic Corporation and Myers/Nuart Electrical

Products, Inc.

 

“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

 

21

 

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.

 

The foregoing definitions shall be equally applicable

to both the singular and plural forms of the defined terms.  Any accounting terms used in this Agreement

which are not specifically defined herein shall have the meanings customarily

given them in accordance with generally accepted accounting principles as in

effect from time to time.

 

1.2                                 References. 

Any references to Subsidiaries of the Borrower set forth herein with

respect to representations and warranties which deal with historical matters

shall be deemed to include the Borrower and its Subsidiaries and shall not in

any way be construed as consent by the Administrative Agent or any Lender to

the establishment, maintenance or acquisition of any Subsidiary, except as

may otherwise be permitted hereunder.

 

ARTICLE

II:  REVOLVING LOAN AND TERM LOAN

FACILITIES

 

2.1                                 Revolving Loans.

 

(A)                              Upon

the satisfaction of the conditions precedent set forth in Sections 5.1

and 5.2, from and including the Closing Date and prior to the

Termination Date, each Lender severally and not jointly agrees, on the terms

and conditions set forth in this Agreement, to make revolving loans to the

Borrower from time to time, in Dollars either as Floating Rate Loans or

Fixed-Rate Loans in a Dollar Amount not to exceed such Lender’s Pro Rata Share

of Revolving Credit Availability at such time (each individually, a “Revolving

Loan” and, collectively, the “Revolving Loans”); provided, however,

at no time shall the Dollar Amount of the Revolving Credit Obligations exceed

the Aggregate Revolving Loan Commitment. 

Subject to the terms of this Agreement, the Borrower may borrow,

repay and reborrow Revolving Loans at any time prior to the Termination

Date.  The Revolving Loans made on the

Closing Date or on or before the third (3rd) Business Day thereafter shall

initially be Floating Rate Loans and thereafter may be continued as

Floating Rate Loans or converted into Eurodollar Rate Loans in the manner

provided in Section 2.9 and subject to the other conditions and

limitations therein set forth and set forth in this Article II and

set forth in the definition of Interest Period.  Revolving Loans made after the third (3rd) Business Day

after the Closing Date shall be, at the option of the Borrower, selected in

accordance with Section 2.9, either Floating Rate Loans or

Eurodollar Rate Loans.  On the Revolving

Loan Termination Date, the Borrower shall repay in full the outstanding

principal balance of the Revolving Loans. 

Each Advance under this Section 2.1 shall consist of

Revolving Loans made by each Lender ratably in proportion to such Lender’s

respective Pro Rata Share.

 

(B)                                Borrowing/Election

Notice.  In accordance with Section 2.13,

the Borrower may telephonically request Advances hereunder.  If a telephonic request is not made with

respect to any Advance in accordance with Section 2.13, then the

Borrower shall deliver to the Administrative Agent a Borrowing/Election Notice,

signed by it, in accordance with the terms of Section 2.7, in order

to request such Advance.  In either

case, the Administrative Agent shall promptly notify each Lender of such

request.

 

22

 

(C)                                Making

of Revolving Loans.  Promptly after

receipt of the Borrowing/Election Notice under Section 2.7 or a

telephonic request in accordance with Section 2.13 in respect of

Revolving Loans, the Administrative Agent shall notify each Lender by telex or

telecopy, or other similar form of transmission, of the requested Revolving

Loan.  Each Lender shall make available

its Revolving Loan in accordance with the terms of Section 2.6.  The Administrative Agent will promptly make

the funds so received from the Lenders available to the Borrower at the

Administrative Agent’s office in Chicago, Illinois or the Administrative

Agent’s Eurodollar Payment Office on the applicable Borrowing Date and shall

disburse such proceeds in accordance with the Borrower’s disbursement

instructions set forth in such Borrowing/Election Notice.  The failure of any Lender to deposit the

amount described above with the Administrative Agent on the applicable Borrowing

Date shall not relieve any other Lender of its obligations hereunder to make

its Revolving Loan on such Borrowing Date.

 

(D)                               Extension

of Revolving Loan Termination Date. 

Not less than thirty (30) nor more than ninety (90) days prior to

May 16, 2004, and any subsequent May 16 to the extent the Revolving

Loan Termination Date has been previously extended pursuant hereto (each, an

“Extension Date”), Borrower may request in writing that Lenders extend the

Revolving Loan Termination Date for one (1) additional year beyond the

Revolving Loan Termination Date then in effect, by delivery of an Extension

Request in the form of Exhibit O attached hereto, provided the period from any

Extension Date to the Revolving Loan Termination Date, then in effect shall in no

event exceed a period of three (3) years. 

If all of the Lenders, in their sole and absolute discretion, agree in

writing to such Extension Request prior to such Extension Date (failure to

respond in writing prior to such date being deemed a denial of such request),

then the Revolving Loan Termination Date shall be extended for such additional

year.  If all of the Lenders have not

approved such Extension Request in writing prior to such Extension Date, then

the existing Revolving Loan Termination Date shall remain in effect without

extension, subject to the Borrower’s rights to replace such non-approving

Lenders in accordance with Section 2.19.

 

2.2                                 Term Loans.

 

(A)                              Amount

of Term Loans.  Upon the

satisfaction of the conditions precedent set forth in Section 5.1

and 5.2, from and including the Closing Date and prior to the

Termination Date, each Lender severally and not jointly agrees, on the terms

and conditions set forth in this Agreement, to make term loans in a single

advance in the amount of the Aggregate Term Loan Commitment to the Borrower, in

Dollars, in an amount not to exceed such Lender’s Pro Rata Share of its Term

Loan Commitment (each, individually, a “Term Loan” and collectively, the

“Term Loans”); provided, however, at no time shall the

Dollar Amount of the Term Loan Obligations exceed the Term Loan

Commitment.  The Term Loans made on the

Closing Date or on or before the third (3rd) Business Day thereafter shall

initially be Floating Rate Loans and thereafter may be continued as

Floating Rate Loans or converted into Eurodollar Rate Loans in the manner

provided in Section 2.9 and subject to the other conditions and

limitations therein set forth and set forth in this Article II and

set forth in the definition of Interest Period.  Term Loans made after the third (3rd) Business Day after the

Closing Date shall be, at the option of the Borrower, selected in accordance

with Section 2.9, either Floating Rate Loans or Eurodollar Rate

Loans.  The Borrower shall repay in full

the outstanding principal balance of the Term Loans in accordance with Section

2.4(C).  Each Advance under this Section 2.2

shall consist of Term Loans made by each Lender ratably in proportion to such

Lender’s respective Pro Rata Share.

 

23

 

(B)                                Borrowing/Election

Notice.  In accordance with Section

2.13, the Borrower may telephonically request Term Loans

hereunder.  If a telephone request is

not made with respect to a Term Loan in accordance with Section 2.13,

the Borrower shall deliver to the Administrative Agent a Borrowing/Election

Notice, signed by it in accordance with terms of Section 2.7, in order

to request a Term Loan.  In either case,

the Administrative Agent shall notify each Lender of such notice.

 

(C)                                Making

of Term Loans.  Promptly after

receipt of the Borrowing/Election Notice under Section 2.2(B) or a

telephonic request in accordance with Section 2.13 in respect of

Term Loans, the Administrative Agent shall notify each Lender by telex or

telecopy, or other similar form of transmission, of the requested Term

Loan.  Each Lender shall make available

its Term Loan in accordance with the terms of Section 2.6.  The Administrative Agent will promptly make

the funds so received from each Lender available to the Borrower on the Borrowing

Date at the Administrative Agent’s office in Chicago, Illinois or the

Administrative Agent’s Eurodollar Payment Office on the applicable Borrowing

Date and shall disburse such proceeds in accordance with the Borrower’s

disbursement instructions set forth in such Borrowing/Election Notice.  The failure of any Lender to deposit the

amount described above with the Administrative Agent on the applicable

Borrowing Date shall not relieve any other Lender of its obligations hereunder

to make its Term Loan on such Borrowing Date.

 

(D)                               Extension

of Term Loan Termination Date.  Not

less than thirty (30) nor more than ninety (90) days prior to May 16,

2004, and any subsequent May 16 to the extent the Term Loan Termination

Date has been previously extended pursuant hereto (each, a “Term Loan Extension

Date”), Borrower may request in writing that Lenders extend the Term Loan

Termination Date for one (1) additional year beyond the Term Loan Termination

Date then in effect, by delivery of an Extension Request in the form of Exhibit

O attached hereto, provided the period from any Extension Date to the Term

Loan Termination Date, then in effect shall in no event exceed a period of

three (3) years.  If all of the Lenders,

in their sole and absolute discretion, agree in writing to such Term Loan

Extension Request prior to such Term Loan Extension Date (failure to respond in

writing prior to such date being deemed a denial of such request), then the

Term Loan Termination Date shall be extended for such additional year.  If all of the Lenders have not approved such

Term Loan Extension Request in writing prior to such Term Loan Extension Date,

then the existing Term Loan Termination Date shall remain in effect without

extension, subject to the Borrower’s rights to replace such non-approving

Lenders in accordance with Section 2.19.  After giving effect to such Term Loan Extension Request,

Borrower, pursuant to Section 2.4(c), shall continue to make equal

quarterly principal installments of $750,000 each, together with accrued interest

thereon with a final installment due on the Term Loan Termination Date, as

extended hereunder.

 

2.3                                 Rate Options for all Advances;

Maximum Interest Periods.  The

Revolving Loans and Term Loans may be Floating Rate Advances or Eurodollar

Rate Advances, or a combination thereof, selected by the Borrower in accordance

with Section 2.9.  The

Borrower may select, in accordance with Section 2.9, Rate

Options and Interest Periods applicable to portions of the Loans; provided that

there shall be no more than ten (10) Interest Periods in effect with

respect to all of the Loans at any time.

 

2.4                                 Optional Payments; Mandatory

Prepayments/Repayments.

 

24

 

(A)                              Optional

Payments.  The Borrower

may from time to time and at any time upon at least one (1 ) Business

Day’s prior written notice repay or prepay, without penalty or premium all or

any part of outstanding Floating Rate Advances in an aggregate minimum amount

of $1,000,000 and in integral multiples of $500,000 in excess thereof.  Eurodollar Rate Advances may be

voluntarily repaid or prepaid prior to the last day of the applicable Interest

Period, subject to the indemnification provisions contained in Section 4.4

in an aggregate minimum amount of $1,000,000 and in integral multiples of

$500,000 in excess thereof, provided, that the Borrower may not so prepay

Eurodollar Rate Advances unless it shall have provided at least three (3)

Business Days’ prior written notice to the Administrative Agent of such prepayment.

 

(B)                                Mandatory

Prepayments of Revolving and Term Loans.

 

(i)                                     If

at any time and for any reason the Revolving Credit Obligations or Term Loan

Credit Obligations are greater than the Aggregate Revolving Loan Commitment or

Aggregate Term Loan Commitment, as the case may be, the Borrower shall

immediately make a mandatory prepayment of the respective Obligations in an

amount equal to such excess;

 

(ii)                                  In

addition to any other mandatory repayments pursuant to this Section 2.4,

on each date after the date of this Agreement Borrower or any Subsidiary

received proceeds from the following transactions, Borrower shall make the

following mandatory prepayments first to repayment of the Term Loan and

thereafter to repayment of the Revolving Loans;

 

(w)                               an

amount equal to 80% of the Net Sale Proceeds of any Asset Sale subject to an

allowance for like-kind exchanges in an aggregate amount not to exceed

$5,000,000 in any fiscal year;

 

(x)                                   an

amount equal to 100% of Net Recovery Event Proceeds received from any Recovery

Event, provided that so long as no Event of Default then exists, such

Net Recovery Event Proceeds shall not be required to be so applied on such date

to the extent that Borrower has delivered a certificate to the Administrative

Agent on or prior to such date stating that such proceeds shall be used (or

contractually committed to be used) within 180 days following the date of

receipt of such Net Recovery Event Proceeds from such Recovery Event to replace

or restore any properties or assets in respect of which such Net Recovery Event

Proceeds were paid (which certificate shall set forth the estimates of the

proceeds to be so expended), and provided further, that if all or any

portion of such Net Recovery Event Proceeds are not so used (or contractually

committed to be used) within such 180-day period, such remaining portion shall

be applied as a mandatory repayment as provided above (without giving effect to

the immediately preceding proviso);

 

(y)                                 an

amount equal to 60% of the net proceeds received from any issuance of capital

stock or any equity interests by Borrower;

 

25

 

(z)                                   an

amount equal to 100% of the net proceeds received from the incurrence of

Indebtedness (other than Indebtedness permitted to the incurred pursuant to Section

7.3(A) of this Agreement;

 

Each amount required to be applied pursuant to Section

2.4(B)(ii) in accordance with this Section 2.4 shall be applied by

or on behalf of the Borrower (i) first, to repay the outstanding

principal amount of Term Loans against the remaining installments in the

inverse order of their maturities, (ii) second, to the extent in excess

of the amounts required to be applied pursuant to the preceding clause (i),

repay the outstanding principal amount of Revolving Loans (with no required

reduction to the Total Revolving Loan Commitment in the case of the preceding

clause (ii)).

 

(C)                                Repayment

of Term Loans.  The outstanding

principal balance of the Term Loan shall be repaid in eleven (11) equal

quarterly principal installments of Seven Hundred and Fifty Thousand and 00/100

Dollars ($750,000.00), together with an additional amount representing accrued

interest beginning on September 30, 2003, and continuing on the last day

of each December, March, June and September thereafter, with a final

installment payment equal to the remaining outstanding principal balance of the

Term Note together with accrued interest thereunder due on the Term Loan

Termination Date.  Principal amounts

repaid on the Term Note may not be borrowed again.

 

2.5                                 Reduction of Commitments.  The Borrower may permanently reduce the

Aggregate Revolving Loan Commitment in whole, or in part ratably among the

Lenders, in an aggregate minimum amount of $5,000,000 with respect thereto and

integral multiples of $1,000,000 in excess of that amount with respect thereto

(unless the Aggregate Revolving Loan Commitment is reduced in whole), upon at

least three (3) Business Day’s prior written notice to the Administrative

Agent, which notice shall specify the amount of any such reduction; provided,

however, that the amount of the Aggregate Revolving Loan Commitment

may not be reduced below the aggregate principal Dollar Amount of the

outstanding Revolving Credit Obligations. 

All accrued facility fees shall be payable on the effective date of any

termination of the obligations of the Lenders to make Loans hereunder.

 

2.6                                 Method of Borrowing.  Not later than 3:00 p.m. (Chicago time) on

each Borrowing Date, each Lender shall make available its Revolving Loan or

Term Loan, as the case may be, in immediately available funds in Dollars

to the Administrative Agent at its address specified pursuant to Article XIV,

unless the Administrative Agent has notified the Lenders that such Loan is to

be made available to the Borrower at the Administrative Agent’s Eurodollar

Payment Office, in which case each Lender shall make available its Loan or

Loans, in funds immediately available to the Administrative Agent at its

Eurodollar Payment Office, not later than 4:00 p.m. (local time in the city of

the Administrative Agent’s Eurodollar Payment Office) in Dollars.  The Administrative Agent will promptly make

the funds so received from the Lenders available to the Borrower at the

Administrative Agent’s aforesaid address, as applicable.

 

2.7                                 Method of Selecting Types and

Interest Periods for Advances.  The

Borrower shall select the Type of Advance and, in the case of each Eurodollar

Rate Advance, the Interest Period applicable to each Advance from time to

time.  The Borrower shall give the

Administrative Agent irrevocable notice in substantially the form of Exhibit B

hereto (a

 

26

 

“Borrowing Election

Notice”) not later than 12:00 noon (Chicago time) (a) on the

Borrowing Date of each Floating Rate Advance, and (b) three (3)

Business Days before the Borrowing Date for each Eurodollar Rate Advance

specifying: (i) the Borrowing Date (which shall be a Business Day) of such

Advance; (ii) the aggregate amount of such Advance; (iii) the Type of

Advance selected; and (iv) in the case of each Eurodollar Rate Advance,

the Interest Period applicable thereto. 

Each Floating Rate Advance and all Obligations other than Loans shall

bear interest from and including the date of the making of such Advance, in the

case of Loans, and the date such Obligation is due and owing in the case of

such other Obligations, to (but not including) the date of repayment thereof at

the Floating Rate changing when and as such Floating Rate changes.  Changes in the rate of interest on that portion

of any Advance maintained as a Floating Rate Loan will take effect

simultaneously with each change in the Alternate Base Rate.  Each Eurodollar Rate Advance shall bear

interest from and including the first day of the Interest Period applicable

thereto to (but not including) the last day of such Interest Period at the

interest rate determined as applicable to such Eurodollar Rate Advance.

 

2.8                                 Minimum Amount of Each Advance.  Each Advance (other than an Advance to repay

a Reimbursement Obligation) shall be in the minimum amount of $1,000,000 and in

multiples of $500,000 if in excess thereof; provided, however,

that any Floating Rate Advance may be in the amount of the unused

Aggregate Revolving Loan Commitment.

 

2.9                                 Method

of Selecting Types, and Interest Periods for Conversion and

Continuation of Advances.

 

(A)                              Right

to Convert.  The Borrower

may elect from time to time. subject to the provisions of Section 2.3

and this Section 2.9, to convert all or any part of a Loan of any

Type into any other Type or Types of Loan; provided that any conversion of any

Eurodollar Rate Advance shall be made on, and only on, the last day of the

Interest Period applicable thereto.

 

(B)                                Automatic

Conversion and Continuation. 

Floating Rate Loans shall continue as Floating Rate Loans unless and

until such Floating Rate Loans are converted into Eurodollar Rate Loans.  Eurodollar Rate Loans shall continue as

Eurodollar Rate Loans until the end of the then applicable Interest Period

therefor, at which time such Eurodollar Rate Loans shall be automatically

converted into Floating Rate Loans unless the Borrower shall have given the

Administrative Agent notice in accordance with Section 2.9(D)

requesting that, at the end of such Interest Period, such Eurodollar Rate Loans

continue as a Eurodollar Rate Loan.

 

(C)                                No

Conversion Post-Default; Limited Conversion Post-Unmatured Default.  Notwithstanding anything to the contrary

contained in Section 2.9(A) or Section 2.9(B),

(x) no Loan may be converted into or continued as a Eurodollar Rate

Loan (except with the consent of the Required Lenders) when any Default has

occurred and is continuing and (y) no Loan may be converted into or

continued as a Eurodollar Rate Loan with an Interest Period greater than one

month (except with the consent of the Required Lenders) when any Unmatured

Default has occurred and is continuing.

 

(D)                               Borrowing/Election

Notice.  The Borrower shall give the

Administrative Agent an irrevocable Borrowing/Election Notice of each

conversion of a Floating Rate Loan into a Eurodollar Rate Loan or continuation

of a Eurodollar Rate Loan not later than 12:00 noon

 

27

 

(Chicago time)

three (3) Business Days prior to the date of the requested conversion or

continuation, with respect to any Loan to be converted or continued as a

Eurodollar Rate Loan specifying: (i) the requested date (which shall be a

Business Day) of such conversion or continuation; (ii) the amount and Type

of the Loan to be converted or continued; and (iii) the amount of

Eurodollar Rate Loan(s) into which such Loan is to be converted or continued,

and the duration of the Interest Period applicable thereto.

 

2.10                           Default Rate. 

After the occurrence and during the continuance of a Default, at the

option of the Administrative Agent or at the direction of the Required Lenders,

the interest rate(s) applicable to the Obligations shall be equal to the

Floating Rate hereunder plus two percent (2.0%) per annum, and the

Letter of Credit fee described in Section 3.8(A) shall be equal to

the then Applicable LC Fee Percentage plus two percent (2.0%) per

annum.

 

2.11                           Method of Payment.  (a) All payments of principal, interest, fees, commissions and

L/C Obligations hereunder shall be made, without setoff, deduction or

counterclaim (unless indicated otherwise in Section 2.14(E)), in

immediately available funds to the Administrative Agent (i) at the

Administrative Agent’s address specified pursuant to Article XIV

with respect to Advances or other Obligations at any other Lending Installation

of the Administrative Agent specified in writing by the Administrative Agent to

the Borrower, by 12:00 p.m. (Chicago time) on the date when due and shall be

made ratably among the Lenders (unless such amount is not to be shared ratably

in accordance with the terms hereof). 

Each Advance shall be repaid or prepaid in the Dollar Amount borrowed

and interest payable thereon shall also be paid in such currency.  Each payment delivered to the Administrative

Agent for the account of any Lender shall be delivered promptly by the

Administrative Agent to such Lender in the same type of funds which the

Administrative Agent received at its address specified pursuant to Article XIV

or at any Lending Installation specified in a notice received by the

Administrative Agent from such Lender. 

Any payment owing by the Borrower to a Lender shall be deemed to have

been paid to such Lender by the Borrower upon the Administrative Agent’s

receipt of such payment from the Borrower. 

The Borrower authorizes the Administrative Agent to charge the account

of the Borrower maintained with The Northern Trust Company for each payment of

principal, interest, fees, commissions and L/C Obligations as it becomes due

hereunder.  Each reference to the

Administrative Agent in this Section 2.11 shall also be deemed to

refer, and shall apply equally, to each Issuing Bank, in the case of payments

required to be made by the Borrower to any Issuing Bank pursuant to Article III.

 

2.12                           Evidence of Debt.

 

(A)                              Notes.  All Loans by any Lender shall be evidenced

by a promissory note of the Borrower. 

On the date of the initial borrowing of Loans, the Borrower shall

deliver to the Agent for the account of each Lender a Revolving Note or Term

Note, as the case may be, dated such date (together with all other

promissory notes accepted in substitution, renewal, or replacement therefor

(including pursuant to Section 13), individually a “Note” and

collectively the “Notes”), in the form of Exhibit I or Exhibit J

respectively hereto, with appropriate insertions and payable on its face to the

order of such Lender on the Revolving Loan Termination Date or Term Loan

Termination Date, as the case may be, in the principal sum of such

Lender’s Revolving Loan Commitment or Term Loan Commitment, as the case may be,

subject, however, to the limitation that the principal amount payable

thereunder shall not at any time exceed the

 

28

 

then unpaid principal

amount of all Loans made by such Lender. 

The Borrower hereby irrevocably authorizes each Lender to make or cause

to be made, at or about the time of each Revolving Loan made by it, an

appropriate notation on the grid attached to the Revolving Note payable to the

order of such Lender, reflecting the unpaid principal amount of all Loans made

by such Lender.  Each Lender agrees to

make or cause to be made, at or about the time of receipt of any payment of any

principal of a Note payable to its order, an appropriate notation on the grid

attached to such Revolving Note reflecting such payment.  The aggregate unpaid amount of Loans set

forth on the grid attached to each Note shall be conclusive evidence (absent

manifest error) of the principal amount owing and unpaid on such Note.  The failure so to record any such Loan or

payment, or any error in so recording any such Loan or repayment, shall not,

however, limit or otherwise affect the obligations of the Borrower hereunder or

under any Note to repay the principal amount of the Loans together with all

interest accruing thereon.

 

(B)                                Register.  The Register maintained by the

Administrative Agent pursuant to Section 13.3(D) shall include a

control account, and a subsidiary account for each Lender, in which accounts

(taken together) shall be recorded (i) the date and the amount of each Loan

made hereunder, the Type thereof and the Interest Period, if any, applicable

thereto, (ii) the amount of any principal or interest due and payable or

to become due and payable from the Borrower to each Lender hereunder,

(iii) the effective date and amount of each Assignment Agreement delivered

to and accepted by it and the parties thereto pursuant to Section 13.3,

(iv) the amount of any sum received by the Administrative Agent hereunder

for the account of the Lenders and each Lender’s share thereof, and (v) all

other appropriate debits and credits as provided in this Agreement, including,

without limitation, all fees, charges, expenses and interest.

 

(C)                                Entries

in Register.  The entries made in

the Register and the other accounts maintained pursuant to subsections (B) of

this Section shall be conclusive and binding for all purposes, absent manifest

error, gross negligence or willful misconduct, unless the Borrower objects to

information contained in the Loan Accounts, the Register or the other accounts within

forty-five (45) days of the Borrower’s receipt of such information;

provided that the failure of any Lender or the Administrative Agent to maintain

such accounts or any error therein shall not in any manner affect the

obligation of the Borrower to repay the Loans in accordance with the terms of

this Agreement.

 

2.13                           Telephonic Notices.  The Borrower authorizes the Lenders and the Administrative Agent

to extend Advances, effect selections of Types of Advances and to transfer

funds based on telephonic notices made by any person or persons the

Administrative Agent or any Lender in good faith believes to be acting on

behalf of the Borrower.  The Borrower

agrees to deliver promptly to the Administrative Agent a written confirmation,

signed by an Authorized Officer (or such other officer designated in writing to

the Administrative Agent by an Authorized Officer so long as such other officer

is also permitted to make such delivery under the Borrower’s organizational

documents), if such confirmation is requested by the Administrative Agent or

any Lender, of each telephonic notice. 

If the written confirmation differs in any material respect from the

action taken by the Administrative Agent and the Lenders, the records of the

Administrative Agent and the Lenders shall govern absent manifest error, gross

negligence or willful misconduct.  In

case of disagreement concerning such notices, if the Administrative Agent has

recorded telephonic borrowing notices, such recordings will be made available

to the Borrower upon the Borrower’s request therefor.

 

29

 

2.14                           Promise to Pay; Interest and Facility

Fees; Interest Payment Dates; Interest and Fee Basis; Taxes.

 

(A)                              Promise

to Pay.  The Borrower

unconditionally promises to pay when due the principal amount of each Loan

incurred by it and all other Obligations incurred by it, and to pay all unpaid

interest accrued thereon, in accordance with the terms of this Agreement and

the other Loan Documents.

 

(B)                                Interest

Payment Dates.  Interest accrued on

each Floating Rate Loan shall be payable on each Payment Date, commencing with

the first such date to occur after the date hereof, upon any prepayment whether

by acceleration or otherwise, and at maturity (whether by acceleration or otherwise).  Interest accrued on each Fixed-Rate Loan

shall be payable on the last day of its applicable Interest Period, on any date

on which such Fixed-Rate Loan is prepaid, whether by acceleration or otherwise,

and at maturity.  Interest accrued on

each Fixed-Rate Loan having an Interest Period longer than three months shall

also be payable on the last day of each three-month interval during such

Interest Period.  Interest accrued on

the principal balance of all other Obligations shall be payable in arrears

(i) on each Payment Date, commencing on the first such Payment Date

following the incurrence of such Obligations, (ii) upon repayment thereof

in full or in part, and (iii) if not theretofore paid in full, at the time

such other Obligations become due and payable (whether by acceleration or

otherwise).

 

(C)                                Fees.

 

(i)                                     The

Borrower shall pay to the Administrative Agent, for the account of the Lenders

in accordance with their Pro Rata Shares, from and after the date of this

Agreement until the date on which the Aggregate Revolving Loan Commitment shall

be terminated in whole, a commitment fee accruing at the rate of the then

Applicable Commitment Fee Percentage, on the amount of the unused Aggregate

Revolving Loan Commitment in effect on the date of such payment.  All such commitment fees payable under this

clause (C)(i) shall be payable quarterly in arrears on each Payment Date

occurring after the date of this Agreement (with the first such payment being

calculated for the period from the Closing Date and ending on May 16,

2006), and, in addition, on the date on which the Aggregate Revolving Loan

Commitment shall be terminated in whole.

 

(ii)                                  The

Borrower agrees to pay to the Administrative Agent the fees set forth in the

letter agreement between the Administrative Agent and the Borrower dated

May 16, 2003, payable at the times and in the amounts set forth therein.

 

(iii)                               The

Borrower agrees to pay, on the Closing Date, to the Administrative Agent, for

the account of the Lenders, upfront fees based upon each Lender’s Pro Rata

Share level as follows:

 

 

	

  Commitment

  	

   

  	

  Upfront

  Fee

  	

   

  
	

  $

  	

  20,000,000

  	

   

  	

  35.0 bps

  	

   

  
	

  $

  	

  15,000,000

  	

   

  	

  25.0 bps

  	

   

  

 

 

30

 

(D)                               Interest

and Fee Basis; Applicable Eurodollar Margin; Applicable ABR Margin; Applicable

L/C Fee Percentage and Applicable Commitment Fee Percentage.

 

(i)                                     Interest

on all Eurodollar Rate Loans and on all fees shall be calculated for actual

days elapsed on the basis of a 360-day year. 

Interest on all Floating Rate Loans shall be calculated for actual days

elapsed on the basis of a 365-day year, or when appropriate 366-day year.  Interest shall be payable for the day an

Obligation is incurred but not for the day of any payment on the amount paid if

payment is received prior to 2:00 p.m. (local time) at the place of

payment.  If any payment of principal of

or interest on a Loan or any payment of any other Obligations shall become due

on a day which is not a Business Day, such payment shall be made on the next

succeeding Business Day and, in the case of a principal payment, such extension

of time shall be included in computing interest, fees and commissions in

connection with such payment.

 

(ii)                                  The

Applicable Eurodollar Margin, Applicable ABR Margin, Applicable Commitment Fee

Percentage and Applicable L/C Fee Percentage shall be determined on the basis

of the then applicable Total Indebtedness to EBITDA Ratio as described in this Section 2.14(D)(ii),

from time to time by reference to the following table: 

 

	

   

  	

   

  	

  Level I

  Status

  	

   

  	

  Level II

  Status

  	

   

  	

  Level III

  Status

  	

   

  
	

  Applicable Margin

  	

   

  	

  Leverage

  Ratio is less than 2.0 to 1.0

  	

   

  	

  Leverage

  Ratio is greater than or equal to 2.0 to 1.0 and less than 2.5 to 1.0

  	

   

  	

  Leverage

  Ratio is greater than or equal to 2.5 to 1.0

  	

   

  
	

  Eurodollar

  Margin and L/C Fee Percentage

  	

   

  	

  1.50

  	

  %

  	

  1.75

  	

  %

  	

  2.00

  	

  %

  
	

  ABR

  Margin

  	

   

  	

  0.25

  	

  %

  	

  0.50

  	

  %

  	

  0.75

  	

  %

  
	

  Commitment

  Fee Percentage

  	

   

  	

  0.25

  	

  %

  	

  0.25

  	

  %

  	

  0.375

  	

  %

  

 

For purposes of this Section 2.14(D)(ii),

the Leverage Ratio shall be calculated as provided in Section 7.4(A).  Upon receipt of the financial statements

delivered pursuant to Sections 7.1(A)(i) and (ii), as

applicable, the Applicable Eurodollar Margin, the Applicable ABR Margin, the

Applicable Commitment Fee Percentage and Applicable L/C Fee Percentage shall be

adjusted, such adjustment being effective five (5) Business Days following

the day such financial statements and compliance certificates are delivered

pursuant to Section 7.1(A); provided, that if the Borrower

shall not have timely delivered its financial statements and compliance

certificates in accordance with the applicable provisions of Section 7.1(A),

and such failure continues for five (5) days after notice from the

Administrative Agent to the Borrower, then, at the discretion of the Required

Lenders, commencing on the date upon which such financial statements and

 

31

 

compliance certificates

should have been delivered and continuing until five (5) days after such

financial statements and compliance certificates are actually delivered, it shall

be assumed for purposes of determining the Applicable Eurodollar Margin, the

Applicable ABR Margin, Applicable L/C Fee Percentage and Applicable Commitment

Fee Percentage that the Leverage Ratio was greater than 2.5 to 1.0 and

Level III pricing shall be applicable.

 

(iii)                               Notwithstanding

anything herein to the contrary, from the Closing Date through the

fifth (5th) Business Day following the day financial statements are

delivered pursuant to Section 7.1(A) for the fiscal year ending

June 30, 2003, the Applicable Eurodollar Margin, the Applicable ABR

Margin, the Applicable L/C Percentage and the Applicable Commitment Fee

Percentage shall be determined based upon a Leverage Ratio equal to

Level II.

 

(E)                                 Taxes.

 

(i)                                     Any

and all payments by the Borrower hereunder (whether in respect of principal,

interest, fees or otherwise) shall be made free and clear of and without

deduction for any and all present or future taxes, levies, imposts, deductions,

charges or withholdings or any interest, penalties or liabilities with respect

thereto imposed by any Governmental Authority including those arising after the

date hereof as a result of the adoption of or any change in any law, treaty,

rule, regulation, guideline or determination of a Governmental Authority or any

change in the interpretation or application thereof by a Governmental Authority

but excluding, in the case of each Lender and the Administrative Agent, such

taxes (including income taxes, franchise taxes and branch profit taxes) as are

imposed on or measured by such Lender’s or the Administrative Agent’s, as the

case may be, net income or similar taxes imposed by the United States of

America or any Governmental Authority of the jurisdiction under the laws of

which such Lender or the Administrative Agent, as the case may be, is

organized or maintains a Lending Installation (all such non-excluded taxes,

levies, imposts, deductions, charges, withholdings, and liabilities which the

Administrative Agent or a Lender determines to be applicable to this Agreement,

the other Loan Documents, the Revolving Loan Commitments, the Loans or the

Letters of Credit being hereinafter referred to as “Taxes”).  If the Borrower or the Administrative Agent

shall be required by law to deduct or withhold any Taxes from or in respect of any

sum payable hereunder or under the other Loan Documents to any Lender or the

Administrative Agent, (i) the sum payable shall be increased as

may be necessary so that after making all required deductions or

withholdings (including deductions or withholdings applicable to additional

sums payable under this Section 2.14(E)) such Lender or the

Administrative Agent (as the case may be) receives an amount equal to the

sum it would have received had no such deductions or withholdings been made,

(ii) the Borrower shall make such deductions or withholdings, and

(iii) the Borrower shall pay the full amount deducted or withheld to the

relevant taxation authority or other authority in accordance with applicable

law.  If any Tax, including, without

limitation, any withholding tax, of the United States of America or any other

Governmental Authority shall be or become applicable (y) after the date of

this Agreement, to such payments by the Borrower made to the Lending

Installation or any other office that a Lender may claim as its Lending

 

32

 

Installation, or

(z) after such Lender’s selection and designation of any other Lending

Installation, to such payments made to such other Lending Installation, such

Lender shall use reasonable efforts to make, fund and maintain its Loans

through another Lending Installation of such Lender in another jurisdiction so

as to reduce the Borrower’s liability hereunder, if the making, tending or

maintenance of such Loans through such other Lending Installation of such

Lender does not, in the reasonable judgment of such Lender, otherwise adversely

and materially affect such Loans, or obligations under the Revolving Loan

Commitments of such Lender.

 

(ii)                                  In

addition, the Borrower agrees to pay any present or future stamp or documentary

taxes or any other excise or property taxes, charges, or similar levies which

arise from any payment made hereunder, from the issuance of Letters of Credit

hereunder, or from the execution, delivery or registration of, or otherwise

with respect to, this Agreement, the other Loan Documents, the Revolving Loan

Commitments, the Loans or the Letters of Credit (hereinafter referred to as “Other

Taxes”).

 

(iii)                               The

Borrower indemnifies each Lender and the Administrative Agent for the full

amount of Taxes and Other Taxes (including, without limitation, any Taxes or

Other Taxes imposed by any Governmental Authority on amounts payable under this

Section 2.14(E)) paid by such Lender or the Administrative Agent

(as the case may be) and any liability (including penalties, interest, and

expenses) arising therefrom or with respect thereto, whether or not such Taxes

or Other Taxes were correctly or legally asserted.  This indemnification shall be made within thirty (30) days

after the date such Lender or the Administrative Agent (as the case

may be) makes written demand therefor. 

A certificate as to any additional amount payable to any Lender or the

Administrative Agent under this Section 2.14(E) submitted to the

Borrower and the Administrative Agent (if a Lender is so submitting) by such

Lender or the Administrative Agent shall show in reasonable detail the amount

payable and the calculations used to determine such amount and shall, absent

manifest error, be final, conclusive and binding upon all parties hereto.  With respect to such deduction or

withholding for or on account of any Taxes and to confirm that all such Taxes

have been paid to the appropriate Governmental Authorities, the Borrower shall

promptly (and in any event not later than thirty (30) days after receipt)

furnish to each Lender and the Administrative Agent such certificates, receipts

and other documents as may be required (in the judgment of such Lender or

the Administrative Agent) to establish any tax credit to which such Lender or

the Administrative Agent may be entitled. 

In the event such Lender or the Administrative Agent receives any such

tax credit, such Lender or the Administrative Agent shall pay to the Borrower such

amount (if any) not exceeding the increased amount paid by the Borrower to, or

on behalf of, such Lender or the Administrative Agent that is allocable to such

increased amount.  Any of the

Administrative Agent or any Lender requesting compensation under this Section 2.14(E)

shall use its reasonable efforts to notify the Borrower (with a copy to the

Administrative Agent) in writing of the event giving rise to such demand for

compensation not more than ninety (90) days following the date upon which

the responsible account officer for the Administrative Agent or the applicable

Lender knows of such event.  Such

written demand shall be rebuttably presumed correct for all purposes.  If any Lender or the Administrative Agent demands

compensation under this Section 2.14(E) more than ninety (90)

days following the date upon which a

 

33

 

responsible account

officer for such Lender or the Administrative Agent knows that Taxes or Other

Taxes have begun to accrue with respect to which such Lender or the Administrative

Agent is entitled to compensation under this Section 2.14(E), then

any Taxes or Other Taxes attributable to the period prior to the

ninety (90) day period immediately preceding the date on which such Lender

or the Administrative Agent provided such notice and demand for compensation

shall be excluded from the indemnity obligations of the Borrower under this Section 2.14(E).

 

(iv)                              Within

thirty (30) days after the date of any payment of Taxes or Other Taxes by

the Borrower, the Borrower shall furnish to the Administrative Agent the

original or a certified copy of a receipt evidencing payment thereof.

 

(v)                                 Without

prejudice to the survival of any other agreement of the Borrower hereunder, the

agreements and obligations of the Borrower contained in this Section 2.14(E)

shall survive the payment in full of all Obligations hereunder, the termination

of the Letters of Credit and the termination of this Agreement for a period of

one year.

 

(vi)                              Each

Lender (including any Replacement Lender or Purchaser) that is not created or

organized under the laws of the United States of America or a political

subdivision thereof (each a “Non-U.S. Lender”) shall deliver to the

Borrower and the Administrative Agent on or before the Closing Date, or, if

later, the date on which such Lender becomes a Lender pursuant to Section 13.3

hereof (and from time to time thereafter upon the request of the Borrower or

the Administrative Agent, but only for so long as such Non-U.S. Lender is

legally entitled to do so), either (1) two (2) duly completed copies

of either (A) IRS Form W-8BEN, or (B) IRS Form W-8ECI, or in either

case an applicable successor form; or (2) in the case of a Non-U.S. Lender

that is not legally entitled to deliver the forms listed in clause (vi)(1),

(x) a certificate of a duly authorized officer of such Non-U.S. Lender to

the effect that such Non-U.S. Lender is not (A) a “bank” within the

meaning of Section 881(c)(3)(A) of the Code, (B) a “10 percent

shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of

the Code, or (C) a controlled foreign corporation receiving interest from

a related person within the meaning of Section 881(c)(3)(C) of the Code

(such certificate, an “Exemption Certificate”) and (y) two (2)

duly completed copies of IRS Form W-SBEN or applicable successor form.  Each such Lender further agrees to deliver

to the Borrower and the Administrative Agent from time to time a true and

accurate certificate executed in duplicate by a duly authorized officer of such

Lender in a form satisfactory to the Borrower and the Administrative Agent,

before or promptly upon the occurrence of any event requiring a change in the

most recent certificate previously delivered by it to the Borrower and the

Administrative Agent pursuant to this Section 2.14(E)(vi).  Further, each Lender which delivers a form

or certificate pursuant to this clause (vi) covenants and agrees to

deliver to the Borrower and the Administrative Agent within fifteen (15)

days prior to the expiration of such form, for so long as this Agreement is

still in effect, another such certificate and/or two (2) accurate and

complete original newly-signed copies of the applicable form (or any successor

form or forms required under the Code or the applicable regulations promulgated

thereunder).

 

34

 

Each

Lender shall promptly furnish to the Borrower and the Administrative Agent such

additional documents as may be reasonably required by the Borrower or the

Administrative Agent to establish any exemption from or reduction of any Taxes

or Other Taxes required to be deducted or withheld.  Notwithstanding any other provision of this Section 2.14(E),

the Borrower shall not be obligated to gross up any payments to any Lender

pursuant to Section 2.14(E)(i), or to indemnity any Lender pursuant

to Section 2.14(E)(iii), in respect of United States federal

withholding taxes to the extent imposed as a result of (x) the failure of

such Lender to deliver to the Borrower the form or forms and/or an Exemption

Certificate, as applicable to such Lender, pursuant to Section 2.14(E)(vi),

(y) such form or forms and/or Exemption Certificate not establishing a

complete exemption from U.S. federal withholding tax or the information or

certifications made therein by the Lender being untrue or inaccurate on the

date delivered in any material respect, or (z) the Lender designating a

successor Lending Installation at which it maintains its Loans which has the

effect of causing such Lender to become obligated for tax payments in excess of

those in effect immediately prior to such designation; provided, however,

that the Borrower shall be obligated to gross up any payments to any such

Lender pursuant to Section 2.14(E)(i), and to indemnify any such

Lender pursuant to Section 2.14(E)(iii), in respect of United

States federal withholding taxes if (1) any such failure to deliver a form

or forms or an Exemption Certificate or the failure of such form or forms or

exemption certificate to establish a complete exemption from U.S. federal withholding

tax or inaccuracy or untruth contained therein resulted from a change in any

applicable statute, treaty, regulation or other applicable law or any

interpretation of any of the foregoing occurring after the date such Lender

became a party hereto, which change rendered such Lender no longer legally

entitled to deliver such form or forms or Exemption Certificate or otherwise

ineligible for a complete exemption from U.S. federal withholding tax, or

rendered the information or the certifications made in such form or forms or

Exemption Certificate untrue or inaccurate in any material respect,

(2) the redesignation of the Lender’s Lending Installation was made at the

request of the Borrower or (3) the obligation to gross up payments to any

such Lender pursuant to Section 2.14(E)(i), or to indemnify any

such Lender pursuant to Section 2.14(E)(iii), is with respect to a

Purchaser that becomes a Purchaser as a result of an assignment made at the

request of the Borrower.

 

(vii)                           Upon

the request, and at the expense of the Borrower, each Lender to which the

Borrower is required to pay any additional amount pursuant to this Section 2.14(E),

shall reasonably afford the Borrower the opportunity to contest, and shall

reasonably cooperate with the Borrower in contesting, the imposition of any Tax

giving rise to such payment; provided, that (i) such Lender shall

not be required to afford the Borrower the opportunity to so contest unless the

Borrower shall have confirmed in writing to such Lender its obligation to pay

such amounts pursuant to this Agreement; and (ii) the Borrower shall

reimburse such Lender for its attorneys’ and accountants’ fees and

disbursements incurred in so cooperating with the Borrower in contesting the

imposition of such Tax; provided, however, that notwithstanding

the foregoing, no Lender shall be required to afford the Borrower the

opportunity to contest, or cooperate with the Borrower in contesting, the

imposition of any Taxes, if such Lender in good faith determines that to do so

would have an adverse effect on it.

 

35

 

2.15                           Notification of Advances, Interest

Rates, Prepayments and Aggregate Revolving Loan Commitment Reductions.  Promptly after receipt thereof, the

Administrative Agent will notify each Lender of the contents of each Aggregate

Revolving Loan Commitment reduction notice, Borrowing/Election Notice, and

repayment notice received by it hereunder. 

The Administrative Agent will notify each Lender of the interest rate

applicable to each Eurodollar Rate Loan promptly upon determination of such

interest rate and will give each Lender prompt notice of each change in the

Alternate Base Rate.

 

2.16                           Lending Installations.  Each Lender may book its Loans or

Letters of Credit at any Lending Installation selected by such Lender and

may change its Lending Installation from time to time upon reasonable

written notice thereof to the Borrower. 

All terms of this Agreement shall apply to any such Lending Installation.  Each Lender may, by written or facsimile notice

to the Administrative Agent and the Borrower, designate a Lending Installation

through which Loans will be made by it and for whose account Loan payments

and/or payments of L/C Obligations are to be made.

 

2.17                           Non-Receipt of Funds by the

Administrative Agent.  Unless

the Borrower or a Lender, as the case may, be, notifies the Administrative

Agent prior to the date on which it is scheduled to make payment to the

Administrative Agent of (i) in the case of a Lender, the proceeds of a

Loan or (ii) in the case of the Borrower, a payment of principal, interest

or fees to the Administrative Agent for the account of the Lenders, that it

does not intend to make such payment, the Administrative Agent may assume

that such payment has been made.  The

Administrative Agent may, but shall not be obligated to, make the amount of

such payment available to the intended recipient in reliance upon such

assumption.  If such Lender or the

Borrower, as the case may be, has not in fact made such payment to the

Administrative Agent, the recipient of such payment shall, on demand by the

Administrative Agent, repay to the Administrative Agent the amount so made

available together with interest thereon in respect of each day during the

period commencing on the date such amount was so made available by the

Administrative Agent until the date the Administrative Agent recovers such

amount at a rate per annum equal to (i) in the case of payment by a

Lender, the Federal Funds Effective Rate for such day or (ii) in the case of

payment by the Borrower, the interest rate applicable to the relevant Loan.

 

2.18                           Termination Date.  This Agreement shall be effective until the Termination

Date.  Notwithstanding the termination

of this Agreement, until (A) all of the Obligations (other than contingent

indemnity obligations) shall have been fully paid and satisfied in cash,

(B) all financing arrangements among the Borrower and the Lenders pursuant

to this Agreement shall have been terminated and (C) all of the Letters of

Credit shall have expired, been canceled, terminated or cash collateralized in

accordance with Section 3.11, all of the rights and remedies under

this Agreement and the other Loan Documents shall survive.

 

2.19                           Replacement of Certain Lenders.  In the event a Lender (“Affected Lender”)

shall have: (i) failed to send its Pro Rata Share of any Advance requested

by the Borrower, which such Lender is obligated to fund under the terms of this

Agreement and which failure has not been cured, (ii) requested

compensation from the Borrower under Sections 2.14(E), 4.1

or 4.2 to recover Taxes, Other Taxes or other additional costs incurred

by such Lender which are not being requested generally by the other Lenders,

(iii) delivered a notice

 

36

 

pursuant to Section 4.3

claiming that such Lender is unable to extend Eurodollar Rate Loans to the

Borrower for reasons not generally applicable to the other Lenders,

(iv) invoked Section 10.2, (v) failed to consent to a

waiver or amendment hereto which has otherwise been consented to by the

Required Lenders, or (vi) failed to consent to an Extension Request under

Section 2.1(D) hereof or a Term Loan Extension Request under Section 2.2(D)

hereof, then, in any such case, the Borrower or the Administrative Agent may make

written demand on such Affected Lender (with a copy to the Administrative Agent

in the case of a demand by the Borrower and a copy to the Borrower in the case

of a demand by the Administrative Agent) for the Affected Lender to assign, and

such Affected Lender shall use commercially reasonable efforts to assign

pursuant to one or more duly executed Assignment Agreements fifteen (15)

Business Days after the date of such demand, to one or more financial

institutions that comply with the provisions of Section 13.3(A)

which the Borrower or the Administrative Agent, as the case may be. shall

have engaged for such purpose (“Replacement Lender”) all of such

Affected Lender’s rights and obligations under this Agreement and the other

Loan Documents (including, without limitation, its Revolving Loan Commitment,

Term Loan Commitment all Loans owing to it, all of its participation interests

in existing Letters of Credit, and its obligation to participate in additional

Letters of Credit hereunder) in accordance with Section 13.3.  The Administrative Agent agrees, upon the

occurrence of such events with respect to an Affected Lender and upon the

written request of the Borrower to use its reasonable efforts to obtain the

commitments from one or more financial institutions to act as a Replacement

Lender.  The Administrative Agent is

authorized to execute one or more of such assignment agreements as

attorney-in-fact for any Affected Lender failing to execute and deliver the

same within fifteen (15) Business Days after the date of such demand.  Further, with respect to such assignment the

Affected Lender shall have concurrently received, in cash, all amounts due and

owing to the Affected Lender hereunder or under any other Loan Document,

including, without limitation, the aggregate outstanding principal amount of

the Loans owed to such Lender, together with accrued interest thereon through

the date of such assignment, amounts payable under Sections 2.14(E),

4.1, and 4.2 with respect to such Affected Lender and

compensation payable under Section 2.14(C) in the event of any

replacement of any Affected Lender under clause (ii) or clause (iii)

of this Section 2.19; provided that upon such Affected

Lender’s replacement, such Affected Lender shall cease to be a party hereto but

shall continue to be entitled to the benefits of Sections 2.14(E), 4.1,

4.2, 4.4, and 10.7, as well as to any fees accrued for its

account hereunder and not yet paid, and shall continue to be obligated under Section 11.8

for such amounts, obligations and liabilities as are due and payable up to and

including (but not after) the date such Affected Lender is replaced pursuant

hereto.  Upon the replacement of any

Affected Lender pursuant to this Section 2.19, the provisions of Section 9.2

shall continue to apply with respect to Loans which are then outstanding with

respect to which the Affected Lender failed to fund its Pro Rata Share and

which failure has not been cured.

 

2.20                           Judgment Currency.  If, for the purposes of obtaining judgment in any court, it is necessary

to convert a sum due from the Borrower hereunder in the currency expressed to

be payable herein (the “specified currency”) into another currency, the

parties hereto agree, to the fullest extent that they may effectively do

so, that the rate of exchange used shall be that at which in accordance with

normal banking procedures the Administrative Agent could purchase the specified

currency with such other currency at the Administrative Agent’s main office in

Chicago, Illinois on the Business Day preceding that on which the final,

non-appealable judgment is given.  The

obligations of the Borrower in respect of any sum due to any

 

37

 

Lender or the

Administrative Agent hereunder shall, notwithstanding any judgment in a

currency other than the specified currency, be discharged only to the extent

that on the Business Day following receipt by such Lender or the Administrative

Agent (as the case may be) of any sum adjudged to be so due in such other

currency such Lender or the Administrative Agent (as the case may be)

may in accordance with normal, reasonable banking procedures purchase the

specified currency with such other currency. 

If the amount of the specified currency so purchased is less than the

sum originally due to such Lender or the Administrative Agent, as the case

may be, in the specified currency, the Borrower agrees, to the fullest

extent that it may effectively do so, as a separate obligation and

notwithstanding any such judgment, to indemnify such Lender or the  Administrative Agent, as the case

may be, against such loss. and it the amount of the specified currency so

purchased exceeds (a) the sum originally due to any Lender or the

Administrative Agent, as the case may be, in the specified currency and

(b) any amounts shared with other Lenders as a result of allocations of

such excess as a disproportionate payment to such Lender under Section 12.2,

such Lender or the Administrative Agent, as the case may be. agrees to

remit such excess to the Borrower.

 

2.21                           Increase of Aggregate Revolving

Loan Commitment.  (A) At

any time and from time to time, the Borrower may request (in consultation

with the Administrative Agent) that the Aggregate Revolving Loan Commitment be

increased without the prior written consent of all of the Lenders, provided,

that, (a) the Aggregate Revolving Loan Commitment shall at no time

exceed $55,000,000; (b) the Borrower shall not previously have reduced the

Aggregate Revolving Loan Commitment; and (c) the Borrower shall not be entitled

to make such request more than once. 

Such request shall be made in a written notice given to the

Administrative Agent and the Lenders by the Borrower not less than

twenty (20) Business Days prior to the proposed effective date of such

increase, which notice (a “Commitment Increase Notice”) shall specify

the amount of the proposed increase in the Aggregate Revolving Loan Commitment

and the proposed effective date of such increase.  In the event of such a Commitment Increase Notice, each of the

Lenders shall be given the opportunity to participate in the requested increase

ratably in proportions that their respective Revolving Loan Commitments bear to

the Aggregate Revolving Loan Commitment. 

No Lender shall have any obligation to increase its Revolving Loan

Commitment pursuant to a Commitment Increase Notice.  On or prior to the date that is ten (10) Business Days after

receipt of the Commitment Increase Notice, each Lender shall submit to the

Administrative Agent a notice indicating the maximum amount by which it is

willing to increase its Revolving Loan Commitment in connection with such

Commitment Increase Notice (any such notice to the Administrative Agent being

herein a “Lender Increase Notice”). 

Any Lender which does not submit a Lender Increase Notice to the

Administrative Agent prior to the expiration of such ten (10) Business Day

period shall be deemed to have denied any increase in its Revolving Loan

Commitment.  In the event that the

increases of Revolving Loan Commitments set forth in the Lender Increase

Notices exceed the amount requested by the Borrower in the Commitment Increase

Notice, the Administrative Agent shall have the right, in consultation with the

Borrower, to allocate the amount of increases necessary to meet the Borrower’s

Commitment Increase Notice.  In the

event that the Lender Increase Notices are less than the amount requested by

the Borrower, not later than three (3) Business Days prior to the proposed

effective date the Borrower may notify the Administrative Agent of any financial

institution that shall have agreed to become a “Lender” party hereto (a “Proposed

New Lender”) in connection with the Commitment Increase Notice.  Any Proposed New Lender shall be subject to

the consent of the Administrative Agent (which consent shall not be

 

38

 

unreasonably

withheld).  If the Borrower shall not

have arranged any Proposed New Lender(s) to commit to the shortfall from the

Lender Increase Notices, then the Borrower shall be deemed to have reduced the

amount of its Commitment Increase Notice to the aggregate amount set forth in

the Lender Increase Notices.  Based upon

the Lender Increase Notices, any allocations made in connection therewith and any

notice regarding any Proposed New Lender, if applicable, the Administrative

Agent shall notify the Borrower and the Lenders on or before the Business Day

immediately prior to the proposed effective date of the amount of each Lender’s

and Proposed New Lenders’ Revolving Loan Commitment (the “Effective

Commitment Amount”) and the amount of the Aggregate Revolving Loan

Commitment, which amount shall be effective on the following Business Day.  Any increase in the Aggregate Revolving Loan

Commitment shall be subject to the following conditions precedent: (i) the

Borrower shall have obtained the consent thereto of any Subsidiary Guarantor of

the Obligations and its reaffirmation of the Loan Document(s), if any, executed

by it, which consent and reaffirmation shall be in writing and in form and

substance reasonably satisfactory to the Administrative Agent, (ii) as of

the date of the Commitment Increase Notice and as of the proposed effective

date of the increase in the Aggregate Revolving Loan Commitment, all

representations and warranties shall be true and correct in all material

respects as though made on such date and no event shall have occurred and then

be continuing which constitutes a Default or Unmatured Default, (iii) the

Borrower, the Administrative Agent and each Proposed New Lender or Lender that

shall have agreed to provide a “Revolving Loan Commitment” in support of such

increase in the Aggregate Revolving Loan Commitment shall have executed and

delivered a Commitment and Acceptance (“Commitment and Acceptance”)

substantially in the form of Exhibit M hereto, and (iv) the

Borrower and the Proposed New Lender shall otherwise have executed and

delivered such other instruments and documents as may be required under Article V

or that the Administrative Agent shall have reasonably requested in connection

with such increase.  In the event any

provision of a Commitment and Acceptance shall be inconsistent with any

provision of this Agreement, then this Agreement shall govern.  If any fee shall be charged by the Lenders

in connection with any such increase, such fee shall be in accordance with then

prevailing market conditions, which market conditions shall have been

reasonably documented by the Administrative Agent to the Borrower.  Upon satisfaction of the conditions

precedent to any increase in the Aggregate Revolving Loan Commitment, the

Administrative Agent shall promptly advise the Borrower and each Lender of the

effective date of such increase.  Upon

the effective date of any increase in the Aggregate Revolving Loan Commitment

that is provided by a Proposed New Lender, such Proposed New Lender shall be a

party to this Agreement as a Lender and shall have the rights and obligations

of a Lender hereunder.  Nothing

contained herein shall constitute, or otherwise be deemed to be, a commitment

on the part of any Lender to increase its Revolving Loan Commitment hereunder

at any time.

 

(B)                                For

purposes of this Section 2.21(B), (i) the term “Buying Lender(s)”

shall mean (a) each Lender the Effective Commitment Amount of which is

greater than its Revolving Loan Commitment prior to the effective date of any

increase in the Aggregate Revolving Loan Commitment and (b) each Proposed

New Lender that is allocated an Effective Commitment Amount in connection with

any Commitment Increase Notice, and (ii) the term “Selling Lender(s)”

shall mean each Lender whose Revolving Loan Commitment is not being increased

from that in effect prior to such increase in the Aggregate Revolving Loan

Commitment.  Effective on the effective

date of any increase in the Aggregate Revolving Loan Commitment pursuant to Section 2.21(A)

above, each Selling Lender hereby sells, grants, assigns and conveys

 

39

 

to each Buying Lender,

without recourse, warranty, or representation of any kind, except as

specifically provided herein, an undivided percentage in such Selling Lender’s

right, title and interest in and to its outstanding Loans in the respective

Dollar Amounts and percentages necessary so that, from and after such sale,

each such Selling Lender’s outstanding Loans shall equal such Selling Lender’s

Pro Rata Share (calculated based upon the Effective Commitment Amounts) of the

outstanding Loans.  Effective on the

effective date of the increase in the Aggregate Revolving Loan Commitment pursuant

to Section 2.21(A) above, each Buying Lender hereby purchases and

accepts such grant, assignment and conveyance from the Selling Lenders.  Each Buying Lender hereby agrees that its

respective purchase price for the portion of the outstanding Loans purchased

hereby shall equal the respective Dollar Amount necessary so that, from and

after such payments, each Buying Lender’s outstanding Loans shall equal such

Buying Lender’s Pro Rata Share (calculated based upon the Effective Commitment

Amounts) of the outstanding Loans.  Such

amount shall be payable on the effective date of the increase in the Aggregate

Revolving Loan Commitment by wire transfer of immediately available funds to

the Administrative Agent.  The

Administrative Agent, in turn, shall wire transfer any such funds received to

the Selling Lenders, in same day funds, for the sole account of the Selling

Lenders.  Each Selling Lender hereby

represents and warrants to each Buying Lender that such Selling Lender owns the

Loans being sold and assigned hereby for its own account and has not sold,  transferred or encumbered any or all of its

interest in such Loans, except for participations which will be extinguished

upon payment to Selling Lender of an amount equal to the portion of the

outstanding Loans being sold by such Selling Lender.  Each Buying Lender hereby acknowledges and agrees that, except

for each Selling Lender’s representations and warranties contained in the

foregoing sentence, each such Buying Lender has entered into its Commitment and

Acceptance with respect to such increase on the basis of its own independent

investigation and has not relied upon, and will not rely upon, any explicit or

implicit written or oral representation, warranty or other statement of the

Lenders or the Administrative Agent concerning the authorization, execution,

legality, validity, effectiveness, genuineness, enforceability or sufficiency

of this Agreement or the other Loan Documents. 

The Borrower hereby agrees to compensate each Selling Lender for all

losses, expenses and liabilities incurred by each Lender in connection with the

sale and assignment of any Eurodollar Rate Loan hereunder on the terms and in

the manner as set forth in Article IV.

 

ARTICLE

III:  THE LETTER OF CREDIT FACILITY

 

3.1                                 Obligation to Issue Letters of Credit.  Subject to the terms and conditions of this

Agreement and in reliance upon the representations, warranties and covenants of

the Borrower herein set forth, each Issuing Bank hereby agrees to issue for the

account of the Borrower through such Issuing Bank’s branches as it and the

Borrower may jointly agree, one or more Letters of Credit denominated in

Dollars in accordance with this Article III, from time to time

during the period, commencing on the Closing Date and ending on the Business Day

prior to the Termination Date.

 

3.2                                 Transitional Letters of Credit.  Schedule 3.2 contains a schedule

of certain letters of credit issued for the account of the Borrower prior to

the Closing Date.  Subject to the

satisfaction of the conditions contained in Sections 5.1 and 5.2,

from and after the Closing Date such letters of credit shall be deemed to be

Letters of Credit issued pursuant to this Article III.

 

40

 

3.3                                 Types and Amounts.  No Issuing Bank shall have any obligation to and no Issuing Bank

shall:

 

(A)                              issue

(or amend) any Letter of Credit if on the date of issuance (or amendment),

before or after giving effect to the Letter of Credit requested hereunder,

(i) the Dollar Amount of the Revolving Credit Obligations at such time

would exceed the Aggregate Revolving Loan Commitment at such time, or

(ii) the aggregate outstanding Dollar Amount of the L/C Obligations would

exceed $10,000,000; or

 

(B)                                issue

(or amend) any Letter of Credit which has an expiration date later than the

date which is the earlier of (x) one (1) year after the date of

issuance thereof or (y) five (5) Business Days immediately preceding

the Revolving Credit Termination Date; provided, that any Letter of

Credit with a one-year term may provide for the renewal thereof for

additional one-year periods (which in no event shall extend beyond the date

referred to in clause (y) above.

 

3.4                                 Conditions. 

In addition to being subject to the satisfaction of the conditions

contained in Sections 5.1 and 5.2, the obligation of an

Issuing Bank to issue any Letter of Credit is subject to the satisfaction in

full of the following conditions:

 

(A)                              the

Borrower shall have delivered to the applicable Issuing Bank at such times and

in such manner as such Issuing Bank may reasonably prescribe, a request

for issuance of such Letter of Credit in substantially the form of Exhibit C

hereto (each such request a “Request For Letter of Credit”), duly

executed applications for such Letter of Credit and such letter of credit

agreement as required by such Issuing Bank, and such other documents,

instructions and agreements as may be required pursuant to the terms

thereof (all such applications, documents, instructions, and agreements being

referred to herein as the “L/C Documents”) to which L/C Documents

Borrower agrees to be bound, (provided in the event of any conflict in terms

between this Agreement and the L/C Documents, this Agreement’s terms shall

govern) and the proposed Letter of Credit shall be reasonably satisfactory to

such Issuing Bank as to form and content; and

 

(B)                                as

of the date of issuance no order, judgment or decree of any court, arbitrator

or Governmental Authority shall purport by its terms to enjoin or restrain the

applicable Issuing Bank from issuing such Letter of Credit and no law, rule or

regulation applicable to such Issuing Bank and no request or directive (whether

or not having the force of law) from a Governmental Authority with jurisdiction

over such Issuing Bank shall prohibit or request that such Issuing Bank refrain

from the issuance of Letters of Credit generally or the issuance of that Letter

of Credit.

 

(C)                                In

the event of any conflict between the terms of this Agreement and the terms of

any application for a Letter of Credit, the terms of this Agreement shall

control.

 

3.5                                 Procedure for Issuance of Letters of Credit.

 

(A)                              Subject

to the terms and conditions of this Article III and provided that

the applicable conditions set forth in Sections 5.1 and 5.2

hereof have been satisfied, the applicable Issuing Bank shall, on the requested

date, issue a Letter of Credit on behalf of the Borrower in

 

41

 

accordance with such

Issuing Bank’s usual and customary business practices and, in this connection,

such Issuing Bank may, assume that the applicable conditions set forth in Section 5.2

hereof have been satisfied unless it shall have received notice to the contrary

from the Administrative Agent or a Lender or has knowledge that the applicable

conditions have not been met.

 

(B)                                The

Issuing Bank shall give the Administrative Agent written or telex notice, or

telephonic notice confirmed promptly thereafter in writing, of the issuance of

a Letter of Credit; provided, however, that the failure to provide such notice

shall not result in any liability on the part of such Issuing Bank.

 

(C)                                No

Issuing Bank shall extend or amend any Letter of Credit unless the requirements

of this Section 3.5 are met as though a new Letter of Credit was

being requested and issued.

 

3.6                                 Letter of Credit Participation.  On the date of this Agreement with respect

to the Letters of Credit identified on Schedule 3.2 and immediately

upon the issuance of each Letter of Credit hereunder, each Lender with a Pro

Rata Share shall be deemed to have automatically, irrevocably and

unconditionally purchased and received from the applicable Issuing Bank an

undivided interest and participation in and to such Letter of Credit, the

obligations of the Borrower in respect thereof, and the liability of such

Issuing Bank thereunder (collectively, an “L/C Interest”) in an amount

equal to the Dollar Amount available for drawing under such Letter of Credit

multiplied by such Lender’s Pro Rata Share. 

Each Issuing Bank will notify each Lender promptly upon presentation to

it of an L/C Draft or upon any other draw under a Letter of Credit.  On or before the Business Day on which an

Issuing Bank makes payment of each such L/C Draft or. in the case of any other

draw on a Letter of Credit, on demand by the Administrative Agent or the

applicable Issuing Bank, each Lender shall make payment to the Administrative

Agent, for the account of the applicable Issuing Bank, in immediately available

funds in an amount equal to such Lender’s Pro Rata Share of the Dollar Amount

of such payment or draw.  The obligation

of each Lender to reimburse the Issuing Banks under this Section 3.6

shall be unconditional, continuing, irrevocable and absolute.  In the event that any Lender fails to make

payment to the Administrative Agent of any amount due under this Section 3.6,

the Administrative Agent shall be entitled to receive, retain and apply against

such obligation the principal and interest otherwise payable to such Lender

hereunder until the Administrative Agent receives such payment from such Lender

or such obligation is otherwise fully satisfied; provided, however,

that nothing contained in this sentence shall relieve such Lender of its

obligation to reimburse the applicable Issuing Bank for such amount in

accordance with this Section 3.6.

 

3.7                                 Reimbursement Obligation.  The Borrower agrees unconditionally,

irrevocably and absolutely to pay immediately to the Administrative Agent, for

the account of the Lenders, the amount of each advance drawn under or pursuant

to a Letter of Credit or an L/C Draft related thereto (such obligation of the

Borrower to reimburse the Administrative Agent for an advance made under a

Letter of Credit or L/C Draft being hereinafter referred to as a “Reimbursement

Obligation” with respect to such Letter of Credit or L/C Draft), each such

reimbursement to be made by the Borrower no later than the Business Day on

which the applicable Issuing Bank makes payment of each such L/C Draft or, if

the Borrower shall have

 

42

 

received notice of a

Reimbursement Obligation later than 11:00 a.m. (Chicago time), on any

Business Day or on a day which is not a Business Day, no later than

11:00 a.m. (Chicago time), on the immediately following Business Day or,

in the case of any other draw on a Letter of Credit, the date specified in the

demand of such Issuing Bank.  If the

Borrower at any time fails to repay a Reimbursement Obligation pursuant to this

Section 3.7, the Borrower shall be deemed to have elected to borrow

Revolving Loans from the Lenders, as of the date of the advance giving rise to

the Reimbursement Obligation, equal in amount to the Dollar Amount of the

unpaid Reimbursement Obligation.  Such

Revolving Loans shall be made as of the date of the payment giving rise to such

Reimbursement Obligation, automatically, without notice and without any

requirement to satisfy the conditions precedent otherwise applicable to an

Advance of Revolving Loans.  Such

Revolving Loans shall constitute a Floating Rate Advance, the proceeds of which

Advance shall be used to repay such Reimbursement Obligation.  If, for any reason, the Borrower fails to

repay a Reimbursement Obligation on the day such Reimbursement Obligation

arises and, for any reason, the Lenders are unable to make or have no

obligation to make Revolving Loans, then such Reimbursement Obligation shall

bear interest from and after such day, until paid in full, at the interest rate

applicable to a Floating Rate Advance plus two percent (2.0%) per annum.

 

3.8                                 Letter of Credit Fees.  The Borrower agrees to pay:

 

(A)                              quarterly,

in arrears, to the Administrative Agent for the ratable benefit of the Lenders

a letter of credit fee at a rate per annum equal to the Applicable Eurodollar

Margin in effect on the average daily outstanding Dollar Amount available for

drawing under each standby Letter of Credit;

 

(B)                                quarterly,

in arrears, to the applicable Issuing Bank, a letter of credit fronting fee

equal to 0.125% per annum on the average daily outstanding face amount

available for drawing under each standby Letter of Credit issued by such

Issuing Bank; and

 

(C)                                to

the Issuing Bank, all customary fees and other issuance, amendment.

cancellation, document examination, negotiation, transfer and presentment

expenses and related charges in connection with the issuance, amendment,

cancellation, presentation of L/C Drafts, negotiation, transfer and the like

customarily charged by such Issuing Bank with respect to standby Letters of

Credit, payable at the time of invoice of such amounts.

 

3.9                                 Issuing Bank Reporting Requirements.  In addition to the notices required by Section 3.5(B),

the Issuing Bank shall, no later than the tenth (10th) Business Day

following the last day of each month, provide to the Administrative Agent, upon

the Administrative Agent’s request, schedules, in form and substance reasonably

satisfactory to the Administrative Agent, showing the date of issue, account

party, and amount expiration date and the reference number of each Letter of

Credit issued by it outstanding at any time during such month and the aggregate

amount payable by the Borrower during such month.  In addition, upon the request of the Administrative Agent, the

Issuing Bank shall furnish to the Administrative Agent copies of any Letter of

Credit and any application for or reimbursement agreement with respect to a

Letter of Credit to which the Issuing Bank is party and such other

documentation as may reasonably be requested by the Administrative

Agent.  Upon the request of any Lender,

the Administrative Agent will provide to such Lender information concerning

such Letters of Credit.

 

43

 

3.10                           Indemnification; Exoneration.

 

(A)                              In

addition to amounts payable as elsewhere provided in this Article III,

the Borrower hereby agrees to protect, indemnify, pay and save harmless the

Administrative Agent, the Issuing Bank and each Lender from and against any and

all liabilities and costs which the Administrative Agent, such Issuing Bank or

such Lender may incur or be subject to as a consequence, direct or

indirect, of (i) the issuance of any Letter of Credit other than, in the

case of the applicable Issuing Bank, to the extent resulting from its gross

negligence or willful misconduct, as determined by the final judgment of a

court of competent jurisdiction, or (ii) the failure of the applicable

Issuing Bank to honor a drawing under a Letter of Credit as a result of any act

or omission, whether rightful or wrongful, of any present or future de jure or

de facto Governmental Authority (all such acts or omissions herein called “Governmental

Acts”).

 

(B)                                As

among the Borrower, the Lenders, the Administrative Agent and the Issuing Bank,

the Borrower assumes all risks of the acts and omissions of, or misuse of such

Letter of Credit by, the beneficiary of any Letter of Credit.  In furtherance and not in limitation of the

foregoing, subject to the provisions of the Letter of Credit applications and

Letter of Credit reimbursement agreements executed by the Borrower at the time

of request for any Letter of Credit, neither the Administrative Agent, the

Issuing Bank nor any Lender shall be responsible (in the absence of gross

negligence or willful misconduct in connection therewith, as determined by the

final judgment of a court of competent jurisdiction):  (i) for the form, validity, sufficiency, accuracy,

genuineness or legal effect of any document submitted by any party in

connection with the application for and issuance of a Letter of Credit, even if

it should in fact prove to be in any or all respects invalid, insufficient,

inaccurate, fraudulent or forged; (ii) for the validity or sufficiency of

any instrument transferring or assigning or purporting to transfer or assign a

Letter of Credit or the rights or benefits thereunder or proceeds thereof, in

whole or in part, which may prove to be invalid or ineffective for any

reason; (iii) for failure of the beneficiary of a Letter of Credit to

comply duly with conditions required in order to draw upon such Letter of

Credit; (iv) for errors, omissions, interruptions or delays in

transmission or delivery of any messages, by mail, cable, telegraph, telex, or

other similar form of teletransmission or otherwise; (v) for errors in

interpretation of technical trade terms; (vi) for any loss or delay in the

transmission or otherwise of any document required in order to make a drawing

under any Letter of Credit or of the proceeds thereof; (vii) for the

misapplication by the beneficiary of a Letter of Credit of the proceeds of any

drawing under such Letter of Credit; and (viii) for any consequences

arising from causes beyond the control of the Administrative Agent, the Issuing

Banks and the Lenders, including, without limitation, any Governmental

Acts.  None of the above shall affect,

impair, or prevent the vesting of any Issuing Bank’s rights or powers under

this Section 3.l0.

 

(C)                                In

furtherance and extension and not in limitation of the specific provisions

hereinabove set forth, any action taken or omitted by any Issuing Bank under or

in connection with the Letters of Credit or any related certificates shall not,

in the absence of gross negligence or willful misconduct, as determined by the

final judgment of a court of competent jurisdiction, put the Issuing Bank, the

Administrative Agent or any Lender under any resulting liability to the

Borrower or relieve the Borrower of any of its obligations hereunder to any

such Person.

 

44

 

(D)                               Without

prejudice to the survival of any other agreement of the Borrower hereunder, the

agreements and obligations of the Borrower contained in this Section 3.10

shall survive the payment in full of principal and interest hereunder, the

termination of the Letters of Credit and the termination of this Agreement.

 

(E)                                 Cash

Collateral.  Notwithstanding

anything to the contrary herein or in any application for a Letter of Credit,

following the occurrence and during the continuance of a Default or upon payout

or termination of this Agreement in full in cash, the Borrower shall, on the Business

Day that it receives Administrative Agent’s demand, deliver to the

Administrative Agent for the benefit of the Lenders and the Issuing Bank, cash,

or other collateral of a type satisfactory to the Required Lenders, having a

value, as determined by such Lenders, equal to one hundred five

percent (105%) of the aggregate Dollar Amount of the outstanding L/C

Obligations.  Any such collateral shall

be held by the Administrative Agent in a separate account appropriately

designated as a cash collateral account in relation to this Agreement and the

Letters of Credit and retained by the Administrative Agent for the benefit of

the Lenders and the Issuing Bank as collateral security for the Borrower’s

obligations in respect of this Agreement and each of the Letters of

Credit.  Such amounts shall be applied

to reimburse the Issuing Banks for drawings or payments under or pursuant to

Letters of Credit, or if no such reimbursement is required, to payment of such

of the other Obligations as the Administrative Agent shall determine.  Amounts remaining in any cash collateral

account established pursuant to this Section 3.11 which are not to

be applied to reimburse an Issuing Bank for amounts actually paid or to be paid

by such Issuing Bank in respect of a Letter of Credit. shall be returned to the

Borrower within one (1) Business Day (after deduction of the

Administrative Agent’s expenses incurred in connection with such cash

collateral account).

 

ARTICLE

IV:  CHANGE IN CIRCUMSTANCES

 

4.1                                 Yield Protection.  If any law or any governmental or quasi-governmental rule,

regulation, policy, guideline or directive (whether or not having the force of

law) adopted after the date the relevant Lender became a party to this

Agreement and having general applicability to all banks within the jurisdiction

in which such Lender operates (excluding, for the avoidance of doubt, the

effect of and phasing in of capital requirements or other regulations or

guidelines passed prior to the date of this Agreement), or any interpretation

or application thereof by any Governmental Authority charged with the

interpretation or application thereof, or the compliance of any Lender

therewith,

 

(A)                              subjects

any Lender or any applicable Lending Installation to any tax, duty, charge or

withholding on or from payments due from the Borrower (excluding taxation of

the overall net income of any Lender or taxation of a similar basis, which are

governed by Section 2.14(E), and excluding any other taxes for

which such Lender has been reimbursed by the Borrower), or changes the basis of

taxation of payments to any Lender in respect of its Revolving Loan Commitment,

Term Loan Commitment Loans, its L/C Interests, the Letters of Credit or other

amounts due it hereunder, or

 

(B)                                imposes

or increases or deems applicable any reserve, assessment, insurance charge,

special deposit or similar requirement against assets of, deposits with or for

the account of, or credit extended by, any Lender or any applicable Lending

 

45

 

Installation (other than

reserves and assessments taken into account in determining the interest rate

applicable to Eurodollar Rate Loans) with respect to its Revolving Loan

Commitment, Term Loan Commitment, the Loans, L/C Interests or the Letters of

Credit, or

 

(C)                                imposes

any other condition the result of which is to increase the cost to any Lender

or any applicable Lending Installation of making, funding or maintaining its

Revolving Loan Commitment, the Term Loan Commitment, the Loans, the L/C

Interests or the Letters of Credit or reduces any amount receivable by any

Lender or any applicable Lending Installation in connection with Loans or

Letters of Credit, or requires any Lender or any applicable Lending

Installation to make any payment calculated by reference to the amount of its

Revolving Loan Commitment, Term Loan Commitment, the Loans or the L/C Interests

held or interest received by it or by reference to the Letters of Credit, by an

amount deemed material by such Lender;

 

and the result of any of the foregoing is to increase

the cost to that Lender of making, renewing or maintaining its Revolving Loan

Commitment, Term Loan Commitment Loans, L/C Interests, or Letters of Credit or

to reduce any amount received under this Agreement, then, within fifteen (15)

days after receipt by the Borrower of written demand by such Lender pursuant to

Section 4.5, the Borrower shall pay such Lender that portion of

such increased expense incurred or reduction in an amount received which such

Lender determines is attributable to making, funding and maintaining its Loans,

L/C Interests, Letters of Credit, its Revolving Loan Commitment and Term Loan

Commitment; provided, however, that the Borrower shall not be

required to pay any additional amounts pursuant to this Section 4.1

incurred more than 90 days prior to the date of the relevant Lender’s

demand therefor.

 

4.2                                 Changes in Capital Adequacy Regulations.  If a Lender determines (i) the amount

of capital required to be maintained by such Lender, any Lending Installation

of such Lender or any corporation controlling such Lender is increased as a

result of a “Change” (as defined below), and (ii) such increase in capital

will result in an increase in the cost to such Lender of maintaining its

Revolving Loan Commitment, Term Loan Commitment, the Loans, L/C Interests, the

Letters of Credit or its obligation to make Loans hereunder, then, within

fifteen (15) days after receipt by the Borrower of written demand by such

Lender pursuant to Section 4.5, the Borrower shall pay such Lender

the amount necessary to compensate for any shortfall in the rate of return on

the portion of such increased capital which such Lender determines is

attributable to this Agreement, its Loans, its L/C Interests, the Letters of

Credit or its obligation to make Loans hereunder (after taking into account

such Lender’s policies as to capital adequacy); provided, however,

that the Borrower shall not be required to pay any additional amounts pursuant

to this Section 4.2 incurred more than 90 days prior to the

date of the relevant Lender’s demand therefor. 

“Change” means (i) any change after the date the relevant

Lender became a party to this Agreement in the “Risk-Based Capital Guidelines”

(as defined below) excluding, for the avoidance of doubt, the effect of any phasing

in of such Risk-Based Capital Guidelines or any other capital requirements

passed prior to the date hereof, or (ii) any adoption of or change in any

other law, governmental or quasi- governmental rule, regulation, policy,

guideline, interpretation, or directive (whether or not having the force of

law) after the date the relevant Lender became a party to this Agreement and

having general applicability to all banks and financial institutions within the

jurisdiction in which such Lender operates which

 

46

 

affects the amount of

capital required or expected to be maintained by any Lender or any Lending

Installation or any corporation controlling any Lender.  “Risk- Based Capital Guidelines”

means (i) the risk-based capital guidelines in effect in the United States

on the date the relevant Lender became a party to this Agreement, including

transition rules, and (ii) the corresponding capital regulations

promulgated by regulatory authorities outside the United States implementing

the July 1988 report of the Basle Committee on Banking Regulation and

Supervisory Practices Entitled “International Convergence of Capital

Measurements and Capital Standards,” including transition rules, and any

amendments to such regulations adopted prior to the date the relevant Lender

became a party to this Agreement.

 

4.3                                 Availability of Types of Advances.  If (i) any Lender determines, in the

exercise of its business judgment, that maintenance of its Fixed-Rate Rate

Loans at a suitable Lending Installation would violate any applicable law,

rule, regulation or directive, whether or not having the force of law, or

(ii) the Required Lenders determine that (x) deposits of a type,

currency or maturity appropriate to match fund Fixed-Rate Loans are not

available or (y) the interest rate applicable to Fixed-Rate Loans does not

accurately reflect the cost of making or maintaining such an Advance, then the

Administrative Agent shall suspend the availability of the affected Type of

Advance and, in the case of any occurrence set forth in clause (i),

require any Advances of the affected Type to be repaid or converted into

another Type.

 

4.4                                 Funding Indemnification.  Subject to Section 2.4(B), if

any payment of a Fixed-Rate Loan occurs on a date which is not the last day of

the applicable Interest Period, whether because of acceleration, prepayment, or

otherwise, or a Fixed-Rate Loan is not made on the date specified by the

Borrower for any reason other than default by the Lenders, the Borrower shall

indemnify each Lender for any loss or cost incurred by it resulting therefrom,

including, without limitation, any loss or cost in liquidating or employing

deposits acquired to fund or maintain the Fixed-Rate Loan.

 

4.5                                 Lender Statements; Survival of Indemnity.  If reasonably possible, each Lender shall

designate an alternate Lending Installation with respect to its Fixed-Rate

Loans to reduce any liability of the Borrower to such Lender under Section

2.14(E) or Sections 4.1 and 4.2 or to avoid the unavailability

of a Type of Advance under Section 4.3, so long as such designation

is not materially disadvantageous, in the judgment of the Lender, to such

Lender.  Any demand for compensation

pursuant to Section 2.14(E) or this Article IV shall be

in writing and shall state the amount due, if any, under Section 2.14(E),

4.1, 4.2, or 4.4 and shall set forth in reasonable detail

the calculations upon which such Lender determined such amount and shall be

final, conclusive, and binding on the Borrower in the absence of manifest

error.  Determination of amounts payable

under such Sections in connection with a Fixed-Rate Loan shall be calculated as

though each Lender funded its Fixed-Rate Loan through the purchase of a deposit

of the type, currency and maturity corresponding to the deposit used as a

reference in determining the Eurodollar Rate applicable to such Loan, whether

in fact that is the case or not.  The

obligations of the Borrower under Sections 2.14(E), 4.1, 4.2,

or 4.4 shall survive payment of the Obligations and termination of this

Agreement.  If the obligation of any

Lender to make a Loan has been suspended under this Article IV for

more than three consecutive months, or any Lender has requested compensation

under this Article IV, then the Borrower, provided no Default

exists, shall have the right, subject to the Administrative Agent’s prior

written consent (such consent not to be unreasonably withheld), to substitute a

financial institution for such

 

47

 

Lender.  Such substitution shall result in such

financial institution acquiring such Lender’s rights, duties and obligations

hereunder and assuming such Lender’s Revolving Loan Commitment or Term Loan

Commitment hereunder.  Upon such

acquisition and assumption, the obligations of the Lender subject thereto shall

be discharged, such Lender’s Revolving Loan Commitment or Term Loan Commitment

shall be reduced to zero, and such Lender shall cease to be obligated to make

further Revolving Loans or Term Loans.

 

ARTICLE

V:  CONDITIONS PRECEDENT

 

5.1                                 Initial Advances and Letters of

Credit.  The Lenders shall not

be required to make the initial Loans or issue any Letters of Credit unless the

Borrower has furnished to the Administrative Agent each of the following, with

sufficient copies for the Lenders, all in form and substance satisfactory to

the Administrative Agent and the Lenders:

 

(1)                                  The

Credit Agreement, duly executed by Borrower, the Administrative Agent and each

Lender;

 

(2)                                  Revolving

Loan Notes, for each Lender, payable to such Lender’s order in the amount of

each Lender’s Pro Rata Share of the Revolving Loan Commitment;

 

(3)                                  Term

Loan Notes, for each Lender, payable to such Lender’s order in the amount of

its Pro Rata Share of the Term Loan Commitment;

 

(4)                                  Secretary’s

Certificate of Borrower, in the form of Exhibit  G-2, together

with (i) copies of the Certificate of Incorporation (or other comparable

constituent document) of Borrower, together with all amendments, (ii) a

certificate of good standing, both certified by the appropriate governmental

officer in its jurisdiction of organization, (iii) copies, certified by the

Secretary of Borrower, of its By-Laws (or other comparable governing document)

and of its Board of Directors’ resolutions (and resolutions of other bodies, if

any are deemed necessary by counsel for any Lender) authorizing the execution

of the Loan Documents and (iv) an incumbency certificate, executed by the

Secretary, which shall identify by name and title and bear the signature of the

officers of the Borrower authorized to sign the Loan Documents and to make

borrowings hereunder, upon which certificate the Lenders shall be entitled to

rely until informed of any change in writing by the Borrower;

 

(5)                                  Secretary’s

Certificate of each Subsidiary Guarantor, in the form of Exhibit  G-3,

together with (i) copies of the Certificate of Incorporation (or other

comparable constituent document) of each Subsidiary Guarantor, together with

all amendments, (ii) a certificate of good standing, both certified by the

appropriate governmental officer in its jurisdiction of organization, (iii)

copies, certified by the Secretary of each Subsidiary Guarantor, of its By-Laws

(or other comparable governing document) and of its Board of Directors’

resolutions (and resolutions of other bodies, if any are deemed necessary by

counsel for any

 

48

 

Lender) authorizing the

execution of the Loan Documents and (iv) an incumbency certificate, executed by

the Secretary, which shall identify by name and title and bear the signature of

the officers of such Subsidiary Guarantor authorized to sign the Loan Documents

and to make borrowings hereunder, upon which certificate the Lenders shall be

entitled to rely until informed of any change in writing by such Subsidiary

Guarantor;

 

(6)                                  The

Subordination Agreement executed by U.S. Traffic Corporation, Myers/Nuart

Electrical Products, Inc., and the Administrative Agent of the Lenders;

 

(7)                                  The

Subsidiary Guaranty executed by each Significant Domestic Incorporated

Subsidiary, any Subsidiary designated as a Subsidiary Guarantor by Borrower and

the Administrative Agent;

 

(8)                                  An

Officer’s Certificate, in the form of Exhibit G-1, signed by the chief

financial officer of the Borrower, stating that on the date of this Agreement

all the representations in this Agreement are true and correct in all material

respects (unless such representation and warranty is made as of a specific

date, in which case, such representation and warranty shall be true in all

material respects as of such date), and no material adverse change, or Default

or Unmatured Default has occurred and is continuing;

 

(9)                                  Documentation,

in form and substance reasonably satisfactory to the Administrative Agent,

evidencing the termination of the Lender Commitments to lend under Northern

Trust Credit Agreement and the repayment of all obligations owing thereunder;

 

(10)                            Written

money transfer instructions reasonably requested by the Administrative Agent,

addressed to the Administrative Agent and signed by an Authorized Officer;

 

(11)                            Evidence,

satisfactory to the Administrative Agent, that the Borrower has paid to the

Administrative Agent, the fees payable pursuant to Section 2.14 and 3.8

hereof;

 

(12)                            The

written opinion of the Borrower’s counsel in the form of the opinion attached

hereto as Exhibit E, addressed to the Administrative Agent, the

Issuing Banks and the Lenders, in form and substance acceptable to the

Administrative Agent and its counsel, with respect to (without limitation) the due

authorization, execution and enforceability of this Agreement and the other

Loan Documents by Borrower and each Subsidiary Guarantor, as applicable;

 

(13)                            A

certified copy of the duly executed Asset Purchase Agreement to the U.S.

Traffic Acquisition and evidence, satisfactory to the Administrative Agent,

that the U.S. Traffic Acquisition has closed; and

 

(14)                            Intentionally

Ommitted.

 

49

 

(15)                            Such

other documents as the Administrative Agent or any Lender or its counsel

may have reasonably requested, including, without limitation, each other

document reflected on the List of Closing Documents attached as Exhibit F

to this Agreement.

 

5.2                                 Each Advance and Letter of Credit.  The Lenders shall not be required to make

any Advance, or issue any Letter of Credit, unless on the applicable Borrowing

Date, or in the case of a Letter of Credit, the date on which the Letter of

Credit is to be issued:

 

(A)                              There

exists no Default or Unmatured Default;

 

(B)                                The

representations and warranties contained in Article VI are true and

correct in all material respects as of such Borrowing Date (unless such

representation and warranty is made as of a specific date, in which case, such

representation and warranty shall be true in all material respects as of such

date); and

 

(C)                                The

Revolving Credit Obligations do not, and after making such proposed Advance or

issuing such Letter of Credit and the Term Loans would not, exceed the

Aggregate Revolving Loan Commitment or the Term Loan Commitment respectively.

 

Each Borrowing/Election

Notice with respect to each such Advance and Loan and the letter of credit

application with respect to each Letter of Credit shall constitute a

representation and warranty by the Borrower that the conditions contained in Sections 5.2(A),

(B) and (C) have been satisfied.

 

ARTICLE

VI:  REPRESENTATIONS AND WARRANTIES

 

In order to induce the

Administrative Agent and the Lenders to enter into this Agreement and to make

the Loans and the other financial accommodations to the Borrower and to issue

the Letters of Credit described herein, the Borrower represents and warrants as

follows to each Lender and the Administrative Agent as of the Closing Date,

giving effect to the consummation of the transactions contemplated by the Loan

Documents on the Closing Date, and thereafter on each date as required by Section 5.2:

 

6.1                                 Organization; Corporate Powers.  The Borrower (i) is a corporation duly

organized, validly existing and in good standing under the laws of the

jurisdiction of its organization, (ii) is duly qualified to do business as

a foreign entity and is in good standing under the laws of each jurisdiction in

which failure to be so qualified and in good standing would reasonably be

expected to have a Material Adverse Effect, and (iii) has all requisite

power and authority to own, operate and encumber its property and to conduct

its business as presently conducted and as proposed to be conducted.

 

6.2                                 Authority; Enforceability.

 

(A)                              Each

of the Borrower and each of its Subsidiaries has the requisite power and

authority to execute, deliver and perform each of the Loan Documents which have

been executed by it as required by this Agreement and the other Loan Documents.

 

50

 

(B)                                The

execution, delivery, and performance, of each of the Loan Documents which have

been executed as required by this Agreement, the other Loan Documents or

otherwise to which the Borrower or any of its Subsidiaries is party, and the

consummation of the transactions contemplated thereby, have been duly

authorized by all requisite corporate, acts (including any required shareholder

approval) of the Borrower or such Subsidiary, as applicable.

 

(C)                                Each

of the Loan Documents to which the Borrower is a party has been duly executed

and delivered by it and constitutes its legal, valid and binding obligation,

enforceable against it in accordance with its terms (except as enforceability

may be limited by bankruptcy, insolvency, or similar laws affecting the

enforcement of creditors’ rights generally and general equitable principles).

 

6.3                                 No Conflict; Governmental Consents.  The execution, delivery and performance of

each of the Loan Documents to which the Borrower is a party do not and will not

(i) conflict with the certificate or articles of incorporation (or other

applicable constituent documents) of the Borrower, (ii) conflict with,

result in a breach of or constitute (with or without notice or lapse of time or

both) a default under any Requirement of Law (including, without limitation,

any Environmental Property Transfer Act) or Contractual Obligation of the

Borrower, or require termination of any Contractual Obligation, except such

breach, default or termination which individually or in the aggregate could not

reasonably be expected to have a Material Adverse Effect, or (iii) result

in or require the creation or imposition of any Lien whatsoever upon any of the

property or assets of the Borrower, other than Liens permitted or created by

the Loan Documents.  Except as set forth

on Schedule 6.3 to this Agreement, the execution, delivery and

performance of each of the Loan Documents to which the Borrower is a party do

not and will not require any registration with, consent or approval of or

notice to, or other action to, with or by any Governmental Authority, including

under any Environmental Property Transfer Act, except filings, consents or

notices which have been made, obtained or given, or which, if not made,

obtained or given, individually or in the aggregate could not reasonably be

expected to have a Material Adverse Effect.

 

6.4                                 Financial Statements.  The consolidated financial statements of the

Borrower and its Subsidiaries at and for the year ended June 30, 2002

heretofore delivered to the Administrative Agent and the Lenders were prepared

in accordance with generally accepted accounting principles in effect on the

date such statements were prepared and fairly present the consolidated

financial condition and operation of the Borrower and its Subsidiaries at June 30,

2002 and the consolidated results of their operations for the period then

ended.

 

6.5                                 No Material Adverse Change.  Since June 30, 2002, except as

disclosed (x) in any of the Borrower’s Form 10-Q, 10-K, or 8-K filings with the

Commission subsequent to December 31, 2002 but prior to the Closing Date,

or (y) in any letter or confidential offering memorandum delivered by the

Borrower to the Administrative Agent and the Lenders prior to the Closing Date,

there has occurred no change in the business, properties, financial condition,

performance, or results of operations of the Borrower, or the Borrower and its

Subsidiaries taken as a whole, or any other event which has had or would

reasonably be expected to have a Material Adverse Effect.

 

51

 

6.6                                 Taxes.  Each of

the Borrower and its Subsidiaries has filed or caused to be filed all federal,

state and local tax returns which are required to be filed by it and, except

for taxes and assessments being contested in good faith and reserved for in

accordance with generally accepted accounting principles as in effect from time

to time (if and to the extent so required), have paid or caused to be paid all

taxes as shown on said returns on any assessment received by it, to the extent

that such taxes have become due.  The

Borrower has no knowledge of any proposed tax assessment against the Borrower

or any of its Subsidiaries that will have or could reasonably be expected to

have a Material Adverse Effect.

 

6.7                                 Litigation; Loss Contingencies and Violations.  Except as disclosed on Schedule 6.7, there

is no action, suit, proceeding, arbitration or, to the Borrower’s knowledge,

investigation before or by any Governmental Authority or private arbitrator

pending or, to the Borrower’s knowledge, threatened in writing against the

Borrower, any of its Subsidiaries or any property of any of them which could

reasonably be expected to have a Material Adverse Effect.

 

6.8                                 Subsidiaries. 

Schedule 6.8 to this Agreement (as updated from time to time

by the Borrower after the formation, acquisition or dissolution of any

Subsidiary (i) contains a description of the corporate structure of the

Borrower, its Subsidiaries and any other Person in which the Borrower or any of

its Subsidiaries holds an Equity Interest; and (ii) accurately sets forth

(A) the correct legal name and the jurisdiction of organization,

(B) a listing of all of the Borrower’s or any Domestic Incorporated

Subsidiary’s Significant Domestic Incorporated Subsidiaries, (C) the authorized,

issued and outstanding shares of each class of Capital Stock of each of the

Borrower’s Subsidiaries and the owners of such shares, and (D) a summary

of the direct and indirect partnership, joint venture, or other Equity

Interests, if any, which the Borrower and each Subsidiary of the Borrower holds

in any Person that is not a corporation. 

Except as disclosed on Schedule 6.8, none of the issued and

outstanding Capital Stock of the Borrower or any of the Borrower’s Subsidiaries

is subject to any vesting, redemption, or repurchase agreement, and there are

no warrants or options outstanding with respect to such Capital Stock.  The outstanding Capital Stock of each of the

Borrower’s Subsidiaries is duly authorized, validly issued, fully paid and

nonassessable and is not Margin Stock.

 

6.9                                 ERISA.  Except as

disclosed on Schedule 6.9, no Benefit Plan has incurred any

material accumulated funding deficiency (as defined in Sections 302(a)(2)

of ERISA and 412(a) of the Code) whether or not waived.  Neither the Borrower nor any member of the

Controlled Group has incurred any material liability to the PBGC which remains

outstanding other than the payment of premiums.  As of the last day of the most recent prior plan year, the market

value of assets under each Benefit Plan, other than any Multiemployer Plan, was

not by a material amount less than the present value of benefit liabilities

thereunder (determined in accordance with the actuarial valuation assumptions

described therein).  Neither the

Borrower nor any member of the Controlled Group has (i) failed to make a

required contribution or payment to a Multiemployer Plan of a material amount

or (ii) incurred a material complete or partial withdrawal under

Section 4203 or Section 4205 of ERISA from a Multiemployer Plan.  Neither the Borrower nor any member of the

Controlled Group has failed to make an installment or any other payment of a

material amount required under Section 412 of the Code on or before the

due date for such installment or other payment.  There have been no and there is no prohibited transaction

described in Sections 406 of ERISA or 4975 of the Code with respect to

 

52

 

any Plan for which a

statutory or administrative exemption does not exist which could reasonably be

expected to subject the Borrower or any of is Subsidiaries to material

liability.  Neither the Borrower nor any

member of the Controlled Group has taken or failed to take any action which

would constitute or result in a Termination Event, which action or inaction

could reasonably be expected to subject the Borrower or any of its Subsidiaries

to material liability.  Neither the

Borrower nor any member of the Controlled Group is subject to any material

liability under, or has any potential material liability under,

Section 4063, 4064, 4069, 4204 or 4212(c) of ERISA.  For purposes of this Section 6.9,

“material” means any amount, noncompliance or other basis for liability which

could reasonably be expected to subject the Borrower or any of its Subsidiaries

to liability, individually or in the aggregate with each other basis for

liability under this Section 6.9, in excess of $3,000,000.

 

6.10                           Accuracy of Information.  The information, exhibits and reports

furnished by the Borrower and any of its Subsidiaries, or by the Borrower on

behalf of any of its Subsidiaries, to the Administrative Agent or to any Lender

in connection with the negotiation of, or compliance with, the Loan Documents,

the representations and warranties of the Borrower and its Subsidiaries

contained in the Loan Documents, and all certificates and documents delivered

to the Administrative Agent and the Lenders pursuant to the terms thereof

(excluding any forecasts and projections of financial information and results

submitted to any Lender as works in process or as materials not otherwise

required to be submitted to the Commission), taken as a whole, do not contain

as of the date thereof any untrue statement of a material fact or omit to state

a material fact necessary in order to make the statements contained herein or

therein, in light of the circumstances under which they were made, not

misleading in any material respect.

 

6.11                           Securities Activities.  Neither the Borrower nor any of its

Subsidiaries is engaged in the business of extending credit for the purpose of

purchasing or carrying Margin Stock.

 

6.12                           Material Agreements.

 

(a)                                  Neither

the Borrower nor any Subsidiary is a party to or subject to any Contractual

Obligation, which, as of such date, individually or in the aggregate could

reasonably be expected to have a Material Adverse Effect.

 

(b)                                 No

member of the senior management of either the Borrower or any of its

Subsidiaries has received written notice that (i) it is in default in the

performance, observance or fulfillment of any of the obligations, covenants or

conditions contained in any Contractual Obligation to which it is a party, or

(ii) any condition exists which, with the giving of notice or the lapse of

time or both, would constitute a default with respect to any such Contractual

Obligation, in each case, which default has, or if not remedied within any

applicable grace period could reasonably be likely to have, a Material Adverse

Effect.

 

6.13                           Compliance with Laws.  The Borrower and its Subsidiaries are in

compliance with all Requirements of Law applicable to them and their respective

businesses, in each case where the failure to so comply individually or in the

aggregate would reasonably be expected to have a Material Adverse Effect.

 

53

 

6.14                           Assets and Properties.  Each of the Borrower and its Subsidiaries

has good and sufficient title to all of its material real and personal

properties owned by it or a valid leasehold interest in all of its leased

assets (except insofar as marketability may be limited by any laws or

regulations of any Governmental Authority affecting such assets), and all such

assets and property are free and clear of all Liens, except Liens permitted

under Section 7.3(C), and except for those defects in title and

Liens that, individually or in the aggregate, would not have a Material Adverse

Effect.

 

6.15                           Statutory Indebtedness Restrictions.  Neither the Borrower nor any of its

Subsidiaries is subject to regulation under the Public Utility Holding Company

Act of 1935, the Federal Power Act, or the Investment Company Act of 1940, or

any other foreign, federal or state statute or regulation which limits its

ability to incur indebtedness or its ability to consummate the transactions

contemplated hereby.

 

6.16                           Labor Matters. 

To the knowledge of the Borrower, no attempt to organize the employees

of the Borrower or any of its Subsidiaries, and no labor disputes, strikes or

walkouts affecting the operations of the Borrower or any of its Subsidiaries,

is pending, or, to the Borrower’s or such Subsidiaries’ knowledge, threatened,

planned or contemplated which would reasonably be expected to have a Material

Adverse Effect.

 

6.17                           Environmental Matters.

 

(A)                              Except

as disclosed on Schedule 6.17 to this Agreement

 

(i)                                     the

operations of the Borrower and its Subsidiaries comply in all material respects

with Environmental, Health or Safety Requirements of Law;

 

(ii)                                  the

Borrower and its Subsidiaries have all permits, licenses or other

authorizations required under Environmental, Health or Safety Requirements of

Law and are in material compliance with such permits;

 

(iii)                               neither

the Borrower, any of its Subsidiaries nor any of their respective present

property or operations, or, to the Borrower’s or any of its Subsidiaries’

knowledge, any of their respective past property or operations, are subject to

or the subject of, any investigation known to the Borrower or any of its

Subsidiaries, any judicial or administrative proceeding, order, judgment,

decree, settlement or other agreement respecting: (A) any material

violation of Environmental, Health or Safety Requirements of Law; (B) any

remedial action; or (C) any material claims or liabilities arising from

the Release or threatened Release of a Contaminant into the environment;

 

(iv)                              there

is not now, nor to the Borrower’s or any of its Subsidiaries’ knowledge has

there ever been, on or in the property of the Borrower or any of its

Subsidiaries any landfill, waste pile, underground storage tanks, aboveground

storage tanks, surface impoundment or hazardous waste storage facility of any

kind, any polychlorinated biphenyls (PCBs) used in hydraulic oils, electric

transformers or other equipment, or any asbestos containing material; and

 

54

 

(v)                                 to

the knowledge of the Borrower or any of its Subsidiaries, neither the Borrower

nor any of its Subsidiaries has any material Contingent Obligation in

connection with any Release or threatened Release of a Contaminant into the

environment.

 

(B)                                For

purposes of this Section 6.17 “material” means any noncompliance or

basis for liability which could reasonably be likely to subject the Borrower or

any of its Subsidiaries to liability, individually or in the aggregate, in

excess of $3,000,000.

 

6.18                           Insurance. 

The Borrower maintains, and has caused each Subsidiary to maintain, with

financially sound and reputable insurance companies, insurance on all of its

property in such amounts, subject to deductibles and self-insurance retentions,

and covering such properties and risks, as is consistent with sound and

customary business practices for companies in lines of business similar to the

Borrower and its Subsidiaries.

 

6.19                           Use of Proceeds. 

All proceeds of the Revolving Loan shall be used for working capital and

general corporate purposes, refinancing of existing indebtedness and to finance

acquisitions and all proceeds of the Term Loan shall be used to finance the

U.S. Traffic Acquisition.

 

6.20                           Solvency.  The

Borrower (i) is currently, and after giving effect to the transactions

contemplated by this Agreement, the Notes and the other Loan Documents, will be

able to pay its debts as they come due and will not incur debts beyond its

ability to pay such debts as they mature or come due, (ii) has capital

sufficient to carry on its business and any business in which it intends or is

about to engage, and (iii) owns property and assets having a value (as a going

concern) in excess of its liabilities and debts.  No transfer of property is being made and no Obligation is being

incurred in connection with the transactions contemplated by this Agreement

with the intent to hinder, delay or defraud either present or future creditors

of the Borrower or any Affiliates of the Borrower.

 

ARTICLE VII:  COVENANTS

 

The Borrower covenants

and agrees that so long as any Commitments are outstanding and thereafter until

payment in full of all of the Obligations (other than contingent indemnity

obligations) and termination of all Letters of Credit (or cash

collateralization thereof in accordance with Section 3.11), unless the

Required Lenders shall otherwise give prior written consent:

 

7.1                                 Reporting. 

The Borrower shall:

 

(A)                              Financial

Reporting.  Furnish to the

Administrative Agent (with sufficient copies for each of the Lenders):

 

(i)                                     Quarterly

Reports.  As soon as practicable,

and in any event no later than the earlier to occur of (x) the fifty second

(52nd) day after the end of each of the first three fiscal quarters of each

fiscal year of the Borrower, and (y) the tenth (10th) day after the date on

which any of the following items are required to be delivered to the

Commission, the consolidated and consolidating balance sheet of the Borrower

and its

 

55

 

Subsidiaries as at the

end of such period and the related statement of consolidated and consolidating

earnings of the Borrower and its Subsidiaries for such fiscal quarter and the

related statements of consolidated earnings and consolidated cash flows of the

Borrower and its Subsidiaries for the period from the beginning of the then

current fiscal year to the end of such fiscal quarter, certified by the chief

financial officer of the Borrower on behalf of the Borrower as fairly

presenting in all material respects the consolidated financial position of the

Borrower and its Subsidiaries as at the dates indicated and the results of

their operations and cash flows for the periods indicated in accordance with

generally accepted accounting principles as in effect from time to time, subject

to normal year-end audit adjustments and the absence of footnotes.  With respect to any fiscal quarter, if all

of the foregoing information is fairly, accurately and completely set forth in

the Borrower’s Form 10-Q filing with the Commission for such fiscal quarter,

the Borrower may deliver such Form 10-Q filing in lieu of a separate

report setting forth such information:  provided,

however, that the Borrower must comply with the foregoing timing

requirements for such delivery whether constituting a Form 10-Q filing or

another report and must deliver any corresponding compliance certificates

hereunder when due.

 

(ii)                                  Annual

Reports.  As soon as practicable,

and in any event no later than the earlier to occur of (x) the ninetieth (90th)

day after the end of each fiscal year of the Borrower, and (y) the tenth (10th)

day after the date on which any of the following items are required to be

delivered to the Commission, (a) the audited consolidated and unaudited

consolidating balance sheet of the Borrower and its Subsidiaries as at the end

of such fiscal year and the related statements of consolidated earnings,

consolidated shareholders’ equity and consolidated cash flows of the Borrower

and its Subsidiaries for such fiscal year, and in comparative form the corresponding

figures for the previous fiscal year in form and substance sufficient to

calculate the financial covenants set forth in Section 7.4, and (b) an

audit report on the items listed in clause (a) hereof (with the

exception of the unaudited consolidating balance sheet) of independent

certified public accountants of recognized national standing, which audit

report shall be unqualified and shall state that such financial statements

fairly present the consolidated financial position of the Borrower and its

Subsidiaries as at the dates indicated and the results of their operations and

cash flows for the periods indicated in conformity with generally accepted

accounting principles as in effect from time to time and that the examination

by such accountants in connection with such consolidated financial statements

has been made in accordance with generally accepted auditing standards.  The deliveries made pursuant to this clause

(ii) shall be accompanied by a certificate of such accountants that, in the

course of their examination necessary for their certification of the foregoing,

they have obtained no knowledge of any Default or Unmatured Default under Section

7.4, or if, in the opinion of such accountants, any Default or Unmatured

Default shall exist under Section 7.4, stating the nature and status

thereof.  With respect to any fiscal

year, if all of the foregoing information is fairly, accurately and completely

set forth in the Borrower’s Form 10-K filing with the Commission for such

fiscal year, the Borrower may deliver such Form 10-K filing in lieu of a

separate report setting forth such information, together with the accountant’s

certificate described in the prior sentence (which is not part of the Form

10-K); provided, however, that the Borrower must comply with the

timing requirements for such delivery whether constituting a Form 10-K filing

or another report and must deliver any corresponding compliance certificates

hereunder when due.

 

56

 

(iii)                               Officer’s

Certificate.  Together with each

delivery of any financial statement (a) pursuant to clauses (i) and (ii)

of this Section 7.1(A), an Officer’s Certificate of the Borrower,

substantially in the form of Exhibit G-1 attached hereto and made a part

hereof, stating that (x) the representations and warranties of the Borrower

contained in Article VI hereof shall have been true and correct in all

material respects (unless such representation or warranty is made as of a

specific date, in which case, such representation and warranty shall be true in

all material respects as of such date) at all times during the period covered

by such financial statements and as of the date of such Officer’s Certificate,

(y) as of the date of such Officer’s Certificate no Default or Unmatured

Default exists, or if any Default or Unmatured Default exists, stating the

nature and status thereof and (z) the Borrower, the Borrower’s chief executive

officer, and the Borrower’s chief financial officer are in compliance with all

requirements of Section 302 and Section 906 of the Sarbanes-Oxley Act of 2002

and all rules and regulations related thereto (or such other officers as

may be required from time to time thereunder), and (b) pursuant to clauses

(i) and (ii) of this Section 7.1(A), a compliance

certificate, substantially in the form of Exhibit H attached hereto and

made a part hereof, signed by the Borrower’s chief financial officer, (1)

demonstrating compliance, when applicable, with the provisions of Sections

7.3(A) through (N) and Section 7.4, and (2) calculating the

Leverage Ratio for purposes of determining the then Applicable Eurodollar

Margin, the Applicable ABR Margin, the Applicable L/C Fee Percentage and

Applicable Commitment Fee Percentage.

 

(iv)                              Budget.  No later than August 15 of each fiscal

year (or earlier if possible), a budget in the form satisfactory to the

Administrative Agent (including budgeted statements of income and sources and

uses of cash and balance sheets) prepared by the Borrower for that fiscal year,

commencing as of July 1 of that year, prepared in summary form, in each

case, on a consolidated basis, for the Borrower and its Subsidiaries.

 

(B)                                Notice

of Default.  Promptly upon any of

the chief executive officer, chief financial officer, or treasurer of the Borrower

obtaining knowledge (i) of any condition or event which constitutes a Default

or Unmatured Default, or becoming aware that any Lender or Administrative Agent

has given any written notice to any Authorized Officer with respect to a

claimed Default or Unmatured Default under this Agreement, or (ii) that any

Person has given any written notice to any Authorized Officer of the Borrower

or any Subsidiary of the Borrower or taken any other action with respect to a

claimed default or event or condition of the type referred to in Section

8.1(E), the Borrower shall deliver to the Administrative Agent and the

Lenders an Officer’s Certificate specifying (a) the nature and period of

existence of any such claimed default. 

Default, Unmatured Default, condition or event, (b) the notice given or

action taken by such Person in connection therewith, and (c) what action the

Borrower has taken, is taking and proposes to take with respect thereto.

 

(C)                                Lawsuits.  (i) Promptly upon the Borrower’s chief

executive officer, chief financial officer, or treasurer obtaining knowledge of

the institution of, or written threat of, any action, suit, proceeding,

governmental investigation or arbitration, by or before any Governmental

Authority, against or affecting the Borrower or any of its Subsidiaries or any

property of the Borrower or any of its Subsidiaries not previously disclosed

pursuant to Section 6.7,

 

57

 

which action, suit,

proceeding, governmental investigation or arbitration exposes, or in the case

of multiple actions, suits, proceedings, governmental investigations or

arbitrations arising out of the same general allegations or circumstances which

expose, in the Borrower’s reasonable judgment, the Borrower or any of its Subsidiaries

to liability in an amount aggregating $3,000,000 or more (exclusive of claims

covered by insurance policies of the Borrower or any of its Subsidiaries unless

the insurers of such claims have disclaimed coverage or reserved the right to

disclaim coverage on such claims and exclusive of claims covered by the

indemnity of a financially responsible indemnitor in favor of the Borrower or

any of its Subsidiaries unless the indemnitor has disclaimed or reserved the

right to disclaim coverage thereof), give written notice thereof to the

Administrative Agent and the Lenders and provide such other information as

may be reasonably available to enable each Lender to evaluate such

matters; and (ii) in addition to the requirements set forth in clause (i) of this

Section 7.1(C), upon request of the Administrative Agent or the Required

Lenders (which requests shall be made no more than once a quarter), promptly

give written notice of the status of any action, suit, proceeding, governmental

investigation or arbitration covered by a report delivered pursuant to clause

(i) above and provide such other information as may be reasonably

available to it that would not jeopardize any attorney-client privilege by

disclosure to the Lenders to enable each Lender and the Administrative Agent

and its counsel to evaluate such matters.

 

(D)                               ERISA

Notices.  Deliver or cause to be

delivered to the Administrative Agent and the Lenders, at the Borrower’s

expense, the following information and notices as soon as reasonably possible,

and in any event:

 

(i)                                     within

ten (10) Business Days after any member of the Controlled Group obtains

knowledge that a Termination Event has occurred which could reasonably be

expected to subject the Borrower or its Subsidiaries to liability individually

or in the aggregate in excess of $3,000,000, a written statement of the chief

financial officer of the Borrower describing such Termination Event and the

action, if any, which the member of the Controlled Group has taken, is taking

or proposes to take with respect thereto, and when known, any action taken or

threatened by the IRS, DOL or PBGC with respect thereto;

 

(ii)                                  within

ten (10) Business Days after the filing of any funding waiver request with the

IRS, a copy of such funding waiver request and thereafter all communications

received by the Borrower or a member of the Controlled Group with respect to

such request within ten (10) Business Days such communication is received;

 

(iii)                               within

ten (10) Business Days after the Borrower or any member or the Controlled Group

knows or has reason to know that (a) a Multiemployer Plan has been terminated,

(b) the administrator or plan sponsor of a Multiemployer Plan intends to

terminate a Multiemployer Plan, or (c) the PBGC has instituted or will

institute proceedings under Section 4042 of ERISA to terminate a Multiemployer

Plan, a notice describing such matter; and

 

(iv)                              within

ten (10) Business Days after the Borrower or any member of the Controlled Group

fails to make a required installment or any other required

 

58

 

payment to a Benefit Plan

which could result in the imposition of a lien under Section 412(a) of tile

Code, a notice thereof.

 

For purposes of this Section

7.1 (D), the Borrower and any member of the Controlled Group shall be

deemed to know all facts known by the administrator of any Plan of which the

Borrower or any member of the Controlled Group is the plan sponsor.

 

(E)                                 Labor

Matters.  Notify the Administrative

Agent and the Lenders in writing, promptly upon an Authorized Officer of the

Borrower learning of (i) any material labor dispute to which the Borrower or

any of its Subsidiaries may become a party, including, without limitation,

any strikes, lockouts or other disputes relating to such Persons’ plants and

other facilities, which dispute would reasonably be expected to have a Material

Adverse Effect and (ii) any Worker Adjustment and Retraining Notification Act

liability incurred with respect to the closing of any plant or other facility

of the Borrower or any of its Subsidiaries which would reasonably be expected

to have a Material Adverse Effect.

 

(F)                                 Other

Indebtedness.  Deliver to the

Administrative Agent (i) a copy of each regular report, notice or communication

regarding potential or actual defaults (including any accompanying officer’s

certificate) delivered by or on behalf of the Borrower to the holders of funded

Indebtedness with an aggregate outstanding principal amount in excess of  $2,000,000 pursuant to the terms of the

agreements governing such Indebtedness, such delivery to be made at the same

time and by the same means as such notice of default is delivered to such

holders, and (ii) a copy of each notice or other communication received by the

Borrower from the holders of funded Indebtedness with an aggregate outstanding

principal amount in excess of $2,000,000 regarding potential or actual defaults

pursuant to the terms of such Indebtedness, such delivery to be made promptly

after such notice or other communication is received by the Borrower.

 

(G)                                Other

Reports.  Deliver or cause to be

delivered to the Administrative Agent and the Lenders copies of (i) all

financial statements, reports and notices, if any, sent by the Borrower to its

securities holders or filed with the Commission by the Borrower, and (ii) all

notifications received from the Commission by the Borrower or its Subsidiaries

pursuant to the Securities Exchange Act of 1934 and the rules promulgated

thereunder.  The Borrower shall include

the Administrative Agent and the Lenders on its standard distribution lists for

all press releases made available generally by the Borrower to the public

concerning material developments in the business of the Borrower or any such

Subsidiary.

 

(H)                               Environmental

Notices.  As soon as possible and in

any event within twenty (20) days after receipt by the Borrower, a copy of (i)

any notice or claim to the effect that the Borrower or any of its Subsidiaries

is or may be liable to any Person as a result of the Release by the

Borrower, any of its Subsidiaries, or any other Person of any Contaminant into

the environment, and (ii) any notice alleging any violation of any

Environmental, Health or Safety Requirements of Law by the Borrower or any of

its Subsidiaries if, in either case, such notice or claim relates to an event

which could reasonably be expected to subject the Borrower and each of its

Subsidiaries to liability individually or in the aggregate in excess of

$3,000,000.

 

(I)                                    Other

Information.  Promptly upon

receiving a request therefor from the Administrative Agent, prepare and deliver

to the Administrative Agent and the Lenders such

 

59

 

other information with

respect to the Borrower. any of its Subsidiaries, as from time to time

may be reasonably requested by the Administrative Agent.

 

7.2                                 Affirmative Covenants.

 

(A)                              Corporate

Existence, Etc.  Except as permitted

pursuant to Section 7.3(I), the Borrower shall, and shall cause each of

its Subsidiaries to, at all times maintain its valid existence and (to the

extent such concept applies to such entity) in good standing as a corporation,

partnership or limited liability company in its jurisdiction of incorporation

or organization, as the case may be, and preserve and keep, or cause to be

preserved and kept, in full force and effect its rights and franchises material

to its businesses, unless, in the good faith judgment of the Borrower, the

failure to preserve any such rights or franchises would not reasonably be

expected to have a Material Adverse Effect.

 

(B)                                Corporate

Powers; Conduct of Business.  The

Borrower shall, and shall cause each of its Subsidiaries to, qualify and remain

qualified to do business in each jurisdiction in which the nature of its

business requires it to be so qualified and where the failure to be so

qualified will have or would reasonably be expected to have a Material Adverse

Effect.

 

(C)                                Compliance

with Laws, Etc.  The Borrower shall,

and shall cause its Subsidiaries to, (a) comply with all Requirements of Law

(including, without limitation, Section 302 and Section 906 of the

Sarbanes-Oxley Act of 2002) and all restrictive covenants affecting such Person

or the business, properties, assets or operations of such Person, and (b)

obtain as needed all permits necessary for its operations and maintain such

permits in good standing, unless failure to comply with such Requirements of

Law or such covenants or to obtain or maintain such permits would not

reasonably be expected to have a Material Adverse Effect.

 

(D)                               Payment

of Taxes and Claims; Tax Consolidation. 

The Borrower shall pay, and cause each of its Subsidiaries to pay, (i)

all material taxes, assessments and other governmental charges imposed upon it

or on any of its properties or assets or in respect of any of its franchises,

business, income or property before any penalty accrues thereon, and (ii) all

claims (including, without limitation, claims for labor, services, materials

and supplies) for sums which have become due and payable and which by law have

or may become a Lien (other than a Lien permitted by Section 7.3(C))

upon any of the Borrower’s or such Subsidiary’s property or assets, prior to

the time when any penalty or fine shall be incurred with respect thereto;

provided, however, that no such taxes, assessments and governmental charges

referred to in clause (i) above or claims referred to in clause (ii) above (and

interest, penalties or fines relating thereto) need be paid if (x) being

contested in good faith by appropriate proceedings diligently instituted and

conducted and if such reserve or other appropriate provision, if any, as shall

be required in conformity with generally accepted accounting principles as in

effect from time to time shall have been made therefor, or (y) the nonpayment

of all such taxes, assessments and other governmental charges would not

reasonably be expected to have a Material Adverse Effect.

 

(E)                                 Insurance.  The Borrower shall maintain for itself and

its Subsidiaries, or shall cause each of its Subsidiaries to maintain in full

force and effect, such insurance policies and programs as reflect coverage that

is reasonably consistent with prudent industry practice for companies operating

in the same or similar locations.

 

60

 

(F)                                 Inspection

of Property; Books and Records; Discussions.  The Borrower shall permit and cause each of the Borrower’s

Subsidiaries to permit, any authorized representative(s) designated by either

the Administrative Agent or any Lender to visit and inspect any of the properties

of the Borrower or any of its Subsidiaries, to examine, audit, check and make

copies of their respective financial and accounting records, books, journals,

orders, receipts and any correspondence and other data relating to their

respective businesses or the transactions contemplated hereby (including,

without limitation, in connection with environmental compliance, hazard or

liability), and to discuss their affairs, finances and accounts with their

officers, all upon reasonable notice and at such reasonable times during normal

business hours, as often as may be reasonably requested.  The Borrower shall keep and maintain, in all

material respects, proper books of record and account on a consolidated basis

in which entries in conformity with GAAP shall be made of all dealings and

transactions in relation to their respective businesses and activities.  The Borrower shall cause each of its

Subsidiaries to keep and maintain, in all material respects, proper books of

record and account.  If a Default has

occurred and is continuing, the Borrower, upon the Administrative Agent’s

request, shall provide copies of such records to the Administrative Agent or

its representatives.

 

(G)                                ERISA

Compliance.  The Borrower shall, and

shall cause each of its Subsidiaries to, maintain and operate all Plans to

comply in all material respects with the provisions of ERISA and shall operate

all Plans and Non-ERISA Commitments to comply in all material respects with the

applicable provisions of the Code, all other applicable laws, and the regulations

and interpretations thereunder and the respective requirements of the governing

documents for such Plans and Non-ERISA Commitments, unless the failure to

maintain, operate and comply with the foregoing, as applicable, would not

reasonably be expected to subject Borrower or its Subsidiaries to a liability

in excess of $3,000,000.

 

(H)                               Maintenance

of Property.  The Borrower shall

cause all material property used in the conduct of its business or the business

of any Subsidiary to be maintained and kept in adequate condition, repair and

working order and supplied with all necessary equipment and shall cause to be

made all necessary repairs, renewals, replacements, betterments and

improvements thereof, all as in the judgment of the Borrower may be necessary

so that the business carried on in connection therewith may be properly

conducted at all times; provided, however, that nothing in this Section

7.2(H) shall prevent the Borrower from discontinuing the operation or

maintenance of any of such property if such discontinuance is, in the judgment

of the Borrower, desirable in the conduct of its business or the business of

any Subsidiary.

 

(I)                                    Environmental

Compliance.  The Borrower and its

Subsidiaries shall comply with all Environmental, Health or Safety Requirements

of Law, except where noncompliance will not have or is not reasonably likely to

subject the Borrower or any of its Subsidiaries to liability, individually or

in the aggregate, in excess of $3,000,000.

 

(J)                                   Use

of Proceeds.  The Borrower shall use

the proceeds of the Revolving Loans for general corporate purposes of the

Borrower and its Subsidiaries (including, without limitation, to consummate

Permitted Acquisitions).  The Borrower

shall use the proceeds of the Term Loan to finance the U.S. Traffic Acquisition.  The Borrower will not, nor will it permit

any Subsidiary to, use any of the proceeds of the Loans to purchase or carry

any Margin Stock.

 

61

 

(K)                               Subsidiary

Guarantees.  The Borrower will,

including in connection with a Permitted Acquisition, (a) cause each

Significant Domestic Incorporated Subsidiary or Significant Foreign

Incorporated Subsidiary to execute the Subsidiary Guaranty (and from and after

the Closing Date cause each Significant Domestic Incorporated Subsidiary or

Significant Foreign Incorporated Subsidiary or any other Subsidiary designated

a Subsidiary Guarantor by Borrower, to execute and deliver to the

Administrative Agent, as promptly as possible, but in any event within sixty (60)

days after becoming a Significant Domestic Incorporated Subsidiary or

Significant Foreign Incorporated Subsidiary of the Borrower or being designated

a Subsidiary Guarantor by Borrower, as applicable, an executed Supplement to

become a Subsidiary Guarantor under the Subsidiary Guaranty in the form of

Annex I to Exhibit N attached hereto (whereupon such Subsidiary shall

become a “Subsidiary Guarantor” under this Agreement)), and (b) deliver and

cause each such Subsidiary to deliver corporate resolutions, opinions of

counsel, and such other corporate documentation as the Administrative Agent

may reasonably request, all in form and substance reasonably satisfactory

to the Administrative Agent; provided, however, that upon the

Borrower’s written request of and certification to the Administrative Agent

that a Domestic Incorporated Subsidiary or Significant Foreign Incorporated

Subsidiary is no longer a Significant Domestic Incorporated Subsidiary or

Significant Foreign Incorporated Subsidiary or that a designated Subsidiary

Guarantor is no longer designated as a Subsidiary Guarantor, the Administrative

Agent shall release such Domestic Incorporated Subsidiary, Significant Foreign

Incorporated Subsidiary or designated Subsidiary from its duties and

obligations under the Subsidiary Guaranty; provided, further,

that if such Domestic Incorporated Subsidiary or Significant Foreign

Incorporated Subsidiary subsequently qualifies as a Significant Domestic

Incorporated Subsidiary or Significant Foreign Incorporated Subsidiary, it

shall be required to re-execute the Subsidiary Guaranty.  Notwithstanding the above to the contrary,

with respect to a Significant Foreign Incorporated Subsidiary (or a Subsidiary

that is not a Domestic Incorporated Subsidiary but is designated as a

Subsidiary Guarantor), Borrower may deliver, in lieu of a Subsidiary

Guaranty, a pledge agreement, in form and substance acceptable to the

Administrative Agent, pledging no more than sixty-five percent (65%) of the

voting stock of such Subsidiary to the Administrative Agent for the benefit of

Lenders.

 

7.3                                 Negative Covenants.

 

(A)                              Indebtedness.  Neither the Borrower nor any of its

Subsidiaries shall directly or indirectly create, incur, assume or otherwise

become or remain directly or indirectly liable with respect to any

Indebtedness, except:

 

(i)                                     the

Obligations;

 

(ii)                                  Permitted

Existing Indebtedness and Permitted Refinancing Indebtedness;

 

(iii)                               Indebtedness

in respect of obligations secured by Customary Permitted Liens;

 

(iv)                              Indebtedness

constituting Contingent Obligations permitted by Section 7.3(E);

 

62

 

(v)                                 Indebtedness

arising from intercompany loans and advances to any Subsidiary, other than to a

Significant Domestic Incorporated Subsidiary or to any Subsidiary which has

executed and delivered to the Administrative Agent, a Subsidiary Guaranty, in

an aggregate principal amount not to exceed a Dollar Amount equal to $3,000,000

at any time; provided, that such intercompany loans and advances shall

be subject to the subordination provisions of Section 10.14 of this

Agreement and Section 6 of the Subsidiary Guaranty;

 

(vi)                              Indebtedness

in respect of Hedging Obligations permitted under Section 7.3(M);

 

(vii)                           Indebtedness

with respect to surety, appeal and performance bonds obtained by the Borrower

or any of its Subsidiaries in the ordinary course of business;

 

(viii)                        Indebtedness

evidenced by the Subordinated Notes in an aggregate principal amount not to

exceed $5,000,000; and

 

(ix)                                secured

or unsecured purchase money Indebtedness (including Capitalized Leases)

incurred by the Borrower or any of its Subsidiaries to finance the acquisition

of assets used in its business, if (1) at the time of such incurrence no

Default or Unmatured Default has occurred and is continuing or would result

from such incurrence, (2) such Indebtedness does not exceed the lower of the

fair market value or the cost of the applicable assets on the date acquired,

(3) such Indebtedness does not exceed $5,000,000 in the aggregate outstanding

at any time, and (4) any Lien securing such Indebtedness is permitted under Section

7.3(C).

 

(B)                                Sales

of Assets.  Neither the Borrower nor

any of its Subsidiaries shall consummate any Asset Sale, except:

 

(i)                                     transfers

of assets between the Borrower and any wholly-owned Subsidiary of the Borrower

or between wholly-owned Subsidiaries of the Borrower not otherwise prohibited

by this Agreement;

 

(ii)                                  sales

of inventory and licenses of intellectual property, each in the ordinary course

of business;

 

(iii)                               the

disposition in the ordinary course of business of equipment that is obsolete,

excess, or no longer used or useful in the Borrower’s or any Subsidiary’s

business;

 

(iv)                              sales,

assignments, transfers, leases, conveyances or other dispositions of other assets

if such transaction (a) is for not less than fair market value (as determined

in good faith by the Borrower’s management or board of directors) and (b) when

combined with all such other transactions (each such transaction being valued

at book value) during the then current fiscal year, represents the disposition

of assets with an aggregate book value not greater than 10% of the aggregate

book value of Consolidated Assets as of the end of the immediately preceding

fiscal year.  If the proceeds resulting from

an Asset Sale are used by the Borrower or the applicable

 

63

 

Subsidiary within 180

days of the date on which such proceeds arose to acquire property of a similar

nature to be used in the Borrower’s or such Subsidiary’s ordinary course of

business, then, only for purposes of determining compliance with this Section

7.3(B)(iv), such Asset Sale shall not be included in such determination.

 

(C)                                Liens.  Neither the Borrower nor any of its

Subsidiaries shall directly or indirectly create, incur, assume or permit to

exist any Lien on or with respect to any of their respective property or assets

except:

 

(i)                                     Liens

created by the Loan Documents or otherwise securing the Obligations;

 

(ii)                                  Permitted

Existing Liens;

 

(iii)                               Customary

Permitted Liens;

 

(iv)                              purchase

money Liens (including the interest of a lessor under a Capitalized Lease and

Liens to which any property is subject at the time of the Borrower’s

acquisition thereof) securing Indebtedness permitted pursuant to Section

7.3(A)(ix); provided that such Liens shall not apply to any property

of the Borrower or its Subsidiaries other than that purchased or subject to

such Capitalized Lease;

 

(v)                                 Liens

with respect to property acquired by the Borrower or any of its Subsidiaries

after the Closing Date (and not created in contemplation of such acquisition)

pursuant to a Permitted Acquisition; provided, that such Liens shall

extend only to the property so acquired;

 

(vi)                              Liens

securing the non-delinquent performance of surety, appeal and performance bonds

obtained by the Borrower or any Subsidiary in the ordinary course of business;

and

 

(vii)                           other

Liens securing Indebtedness not to exceed $3,000,000 in the aggregate.

 

In addition, neither the Borrower nor any of its

Subsidiaries shall become a party to any agreement, note, indenture or other

instrument, or take any other action, which would prohibit the creation of a

Lien on any of its properties or other assets in favor of the Administrative

Agent for the benefit of itself and the Lenders, as collateral for the

Obligations.

 

(D)                               Investments.  Except to the extent permitted pursuant to

paragraph (G) below, neither the Borrower nor any of its Subsidiaries shall

directly or indirectly make or own any Investment except:

 

(i)                                     Investments

in cash and Cash Equivalents;

 

(ii)                                  Permitted

Existing Investments;

 

64

 

(iii)                               Investments

in trade receivables or received in connection with the bankruptcy or

reorganization of suppliers and customers and in settlement of delinquent

obligations of, and other disputes with, customers and suppliers arising in the

ordinary course of business;

 

(iv)                              Investments

consisting of deposit accounts maintained by the Borrower and its Subsidiaries;

 

(v)                                 Investments

in any Subsidiary Guarantor;

 

(vi)                              Investments

constituting Permitted Acquisitions;

 

(vii)                           Investments

constituting Indebtedness permitted by Section 7.3(A), Contingent

Obligations permitted by Section 7.3(E) or Restricted Payments permitted

by Section 7.3(F);

 

(viii)                        Investments

consisting of any right of the Borrower or its wholly-owned Domestic

Incorporated Subsidiaries to payment for goods sold or for services rendered,

whether or not it has been earned by performance;

 

(ix)                                Investments

in addition to those referred to elsewhere in this Section 7.3(D) in an

aggregate amount not to exceed 

$3,000,000 at any time outstanding.

 

(E)                                 Contingent

Obligations.  Neither the Borrower

nor any of its Subsidiaries shall directly or indirectly create or become or be

liable with respect to any Contingent Obligation, except:  (i) recourse obligations resulting from

endorsement of negotiable instruments for collection in the ordinary course of

business; (ii) Permitted Existing Contingent Obligations; (iii) obligations,

warranties, guarantees and indemnities, not relating to Indebtedness of any

Person, which have been or are undertaken or made in the ordinary course of

business and not for the benefit of or in favor of an Affiliate of the Borrower

or such Subsidiary; (iv) Contingent Obligations with respect to surety, appeal

and performance bonds obtained by the Borrower or any Subsidiary in the

ordinary course of business; (v) Contingent Obligations of the Subsidiary

Guarantors under the Subsidiary Guaranty; (vi) obligations arising under or

related to the Loan Documents; (vii) Contingent Obligations in respect of

representations and warranties customarily given in respect of Asset Sales

otherwise permitted hereunder; and (viii) Contingent Obligations, in an aggregate

amount not to exceed $3,000,000, arising as a result of the guaranty of any

Indebtedness not described in clauses (i) through (ix) hereof and otherwise

permitted under Section 7.3(A).

 

(F)                                 Restricted

Payments.  The Borrower shall not

declare or make any Restricted Payment if either a Default or an Unmatured

Default shall have occurred and be continuing at the date of declaration or

payment thereof or would result therefrom.

 

(G)                                Conduct

of Business; Subsidiaries; Acquisitions. 

Neither the Borrower nor any of its Subsidiaries shall engage in any

business other than the businesses engaged in by the Borrower on the date

hereof and any business or activities which are reasonably similar, related or

incidental thereto or logical extensions thereof.  The Borrower shall not create, acquire or capitalize any

Subsidiary after the date hereof unless (i) no Default or Unmatured Default

 

65

 

which is not being cured

shall have occurred and be continuing or would result therefrom; (ii) after

such creation, acquisition or capitalization, all of the representations and

warranties contained herein shall be true and correct in all material respects

(unless such representation and warranty is made as of a specific date, in

which case, such representation or warranty shall be true in all material

respects as of such date); and (iii) after such creation, acquisition or

capitalization the Borrower shall be in compliance with the terms of Section

7.2(K) and Section 7.3(L). 

The Borrower shall not make any Acquisitions without approval by the

Required Lenders; provided that Borrower shall not need the approval of the

Required Lenders to make Permitted Acquisitions (as defined below) of up to (x)

$5,000,000 in aggregate purchase price in the first twelve month period

immediately following the date of this Agreement, (ii) $10,000,000 in aggregate

purchase price in the second twelve month period immediately following the date

of this Agreement, and (iii) up to the amount equal to 50% of the Borrower’s

trailing twelve month EBITDA in aggregate purchase price during any twelve

month period from and after the end of the second twelve month period

immediately following the date of this Agreement.  For purposes of this Agreement, Permitted Acquisitions are

Acquisitions meeting the following requirements or otherwise approved by the

Required Lenders:

 

(i)                                     no

Default or Unmatured Default shall have occurred and be continuing or would

result from such Acquisition or the incurrence of any Indebtedness in

connection therewith;

 

(ii)                                  the

purchase is consummated pursuant to a negotiated acquisition agreement on a

non-hostile basis;

 

(iii)                               the

Borrower shall deliver to the Administrative Agent and the Lenders a

certificate from one of the Authorized Officers, demonstrating to the

reasonable satisfaction of the Administrative Agent that after giving effect to

such Acquisition and the incurrence of any Indebtedness permitted by Section

7.3(A) in connection therewith, on a pro  forma basis using,

for any Acquisition, historical financial statements, as if the Acquisition and

such incurrence of Indebtedness had occurred on the first day of the

twelve-month period ending on the last day of the Borrower’s most recently

completed fiscal quarter, the Borrower would have been in compliance with the

financial covenants in Section 7.4 and not otherwise in Default;

 

(iv)                              after

giving effect to such Acquisition, Borrower must demonstrate pro forma

availability under the Revolving Loan Commitment of $5,000,000 or more and pro

forma compliance with all financial covenants under Section 7.4 hereof;

and

 

(v)                                 the

businesses being acquired shall be reasonably similar, related or incidental

to, or a logical extension of, the businesses or activities engaged in by the

Borrower on the Closing Date.

 

(H)                               Transactions

with Affiliates.  Neither the

Borrower nor any of its Subsidiaries shall directly or indirectly enter into or

permit to exist any transaction (including, without limitation, the purchase,

sale, lease or exchange of any property or the rendering of any service) with

any Affiliate of the Borrower, on terms that are (a) not authorized by the

Board of Directors or (b) less favorable to the Borrower or any of its

Subsidiaries, as applicable, than

 

66

 

those that might be

obtained in an arm’s length transaction at the time from Persons who are not

such an Affiliate, except for (i) Restricted Payments permitted by Section

7.3(F), (ii) Investments permitted by Section 7.3(D), (iii)

transactions in the ordinary course of business and pursuant to the reasonable

requirements of the Borrower’s or such Subsidiary’s business and (iv) loans and

advances to employees in the ordinary course of business and in amounts

consistent with practice in effect prior to the Closing Date.

 

(I)                                    Restriction

on Fundamental Changes.  Neither the

Borrower nor any of its Subsidiaries shall enter into any merger or

consolidation, or liquidate, wind-up or dissolve (or suffer any liquidation or

dissolution), or convey, lease, sell, transfer or otherwise dispose of, in one

transaction or series of transactions, all or substantially all of the

Borrower’s consolidated business or property, whether now or hereafter

acquired, except (i) transactions permitted under Sections 7.3(B). 7.3(D)

or 7.3(G) and, (ii) a Subsidiary of the Borrower may be merged into

or consolidated with the Borrower (in which case the Borrower shall be the

surviving corporation) or any wholly-owned Domestic Incorporated Subsidiary of

the Borrower, and (iii) any liquidation of any Subsidiary of the Borrower into

the Borrower or another Subsidiary of the Borrower, as applicable.

 

(J)                                   Margin

Regulations.  Neither the Borrower

nor any of its Subsidiaries, shall use all or any portion of the proceeds of

any credit extended under this Agreement to purchase or carry Margin Stock.

 

(K)                               ERISA.  The Borrower shall not:

 

(i)                                     permit

to exist any accumulated funding deficiency (as defined in Sections 302 of

ERISA and 412 of the Code), with respect to any Benefit Plan, whether or not

waived;

 

(ii)                                  terminate,

or permit any Controlled Group member to terminate, any Benefit Plan which

would result in liability of the Borrower or any Controlled Group member under

Title IV of ERISA; or

 

(iii)                               fail,

or permit any Controlled Group member to fail, to pay any required installment

or any other payment required under Section 412 of the Code on or before the

due date for such installment or other payment;

 

except where such

transactions, events, circumstances, or failures are not, individually or in

the aggregate, reasonably expected to result in liability individually or in

the aggregate in excess of $3,000,000.

 

(L)                                 Domestic

Incorporated Subsidiary Covenants. 

The Borrower will not, and will not permit any Domestic Incorporated

Subsidiary to, create or otherwise cause to become effective any consensual

encumbrance or restriction of any kind on the ability of any Domestic

Incorporated Subsidiary to pay dividends or make any other distribution on its

stock, or make any other Restricted Payment, pay any Indebtedness or other

Obligation owed to the Borrower or any other Domestic Incorporated Subsidiary,

make loans or advances or other Investments in the Borrower or any other

Domestic Incorporated Subsidiary, or sell, transfer or otherwise convey any of

its property to the Borrower or any other Domestic Incorporated Subsidiary

other than

 

67

 

pursuant to (i)

applicable law, (ii) this Agreement or the other Loan Documents or (iii)

restrictions imposed by the holder of a Lien permitted by Section 7.3(C).

 

(M)                            Hedging

Obligations.  The Borrower shall not

and shall not permit any of its Subsidiaries to enter into any interest rate,

commodity or foreign currency exchange, swap, collar, cap or similar agreements

evidencing Hedging Obligations, other than interest rate, foreign currency or

commodity exchange, swap, collar, cap or similar agreements entered into by the

Borrower or such Subsidiary pursuant to which the Borrower or such Subsidiary

has hedged its reasonably estimated interest rate, foreign currency or

commodity exposure, which are non-speculative in nature.  Such permitted hedging agreements entered

into by the Borrower and any Lender or any affiliate of any Lender are sometimes

referred to herein as “Hedging Agreements.”

 

(N)                               Issuance

of Disqualified Stock.  From and

after the Closing Date, neither the Borrower, nor any of its Subsidiaries shall

issue any Disqualified Stock unless after giving effect to the next sentence,

such Disqualified Stock and Indebtedness is issued in accordance with the terms

of this Agreement.  All issued and

outstanding Disqualified Stock shall be treated as Indebtedness for all

purposes of this Agreement (and as funded Indebtedness for purposes of Section

7.1(F)), and the amount of such deemed Indebtedness shall be the aggregate

amount of the liquidation preference of such Disqualified Stock.

 

7.4                                 Financial Covenants.  The Borrower shall comply with the

following:

 

(A)                              Maximum

Leverage Ratio.  The Borrower and

its consolidated Subsidiaries shall not permit the ratio (the “Leverage

Ratio”) of (i) total Indebtedness of the Borrower and its consolidated

Subsidiaries to (ii) EBITDA to be greater than 2.90 to 1.00 for each of the

fiscal quarters ending June 30, 2003, September 30, 2003,

December 31, 2003, March 31, 2004, and June 30, 2004, and 2.75

to 1.00, for all fiscal quarters thereafter.

 

The Leverage Ratio shall

be calculated, in each case, determined as of the last day of each fiscal

quarter of the Borrower based upon (a) for Indebtedness, Indebtedness as of the

last day of each such fiscal quarter; and (b) for EBITDA, the actual amount for

the Last Twelve-Month Period, provided, that the Leverage Ratio shall be

calculated, with respect to Permitted Acquisitions, on a pro  forma

basis using historical financial statements, broken down by fiscal quarter in

the Borrower’s reasonable judgment.  For

the fiscal quarters ending June 30, 2003, September 30, 2003,

December 31, 2003 and March 31, 2004 (the “Initial Quarters”),

Borrower, in connection with the U.S. Traffic Acquisition, shall calculate

EBITDA of U.S. Traffic for covenant purposes on a pro forma basis as equal to

$4,056,000, and, for each period thereafter, EBITDA shall be calculated as

reported.  For the Initial Quarters,

Borrower’s EBITDA shall be calculated using $4,056,000 as the U.S. Traffic pro

forma EBITDA in lieu of the U.S. Traffic pro forma EBITDA, and for all periods

thereafter, Borrower’s EBITDA will be as reported.

 

(B)                                Minimum

Consolidated Net Worth.  The

Borrower shall not permit its Consolidated Net Worth at any time to be less

than the sum of 85% of its Base Net Worth on the Closing Date.  “Base Net Worth” shall mean Quixote

Corporation’s book Net Worth as of April 30, 2003 and equity transactions

occurring as a result of the U.S. Traffic Acquisition as of the Closing Date,

plus 50% of Quixote’s positive Consolidated Net Income thereafter.  The

 

68

 

Borrower’s compliance

with this covenant shall be calculated and tested as of the end of each fiscal

quarter.

 

(C)                                Minimum

EBITDA Ratio.  The Borrower and its

consolidated Subsidiaries shall maintain minimum EBITDA, measured as of the end

of each fiscal quarter period of the Borrower, as measured on a rolling four

quarter basis, of $15,000,000.  For the

fiscal quarters ending June 30, 2003, September 30, 2003,

December 31, 2003 and March 31, 2004 (the “Initial Quarters”),

Borrower, in connection with the U.S. Traffic Acquisition, shall calculate

EBITDA of U.S. Traffic for covenant purposes on a pro forma basis as equal to

$4,056,000, and, for each period thereafter, EBITDA shall be calculated as

reported.  For the Initial Quarters,

Borrower’s EBITDA shall be calculated using $4,056,000 as the U.S. Traffic pro

forma EBITDA in lieu of the U.S. Traffic pro forma EBITDA, and for all periods

thereafter, Borrower’s EBITDA will be as reported.

 

(D)                               Fixed

Charge Coverage Ratio.  The Borrower

and its consolidated Subsidiaries shall not permit the ratio (“Fixed Charge

Coverage Ratio”), for any period, of (i) EBITDA, minus Capital Expenditures and

Patent Expenditures to (ii) the sum of cash Interest Expense, plus scheduled

payments of the principal of the Term Loans for such period, plus scheduled

payments of the principal portion of all other Indebtedness for borrowed money

for such period (excluding payments on the Revolving Loans), plus dividends and

distributions paid for such period, and taxes paid for such period, as measured

on a rolling four quarter basis, of not less than 1.10 to 1.00 for each of the

fiscal quarters ending June 30, 2003, September 30, 2003,

December 31, 2003, March 31, 2004 and June 30, 2004 and 1.2 to

1.0, for all fiscal quarters thereafter. 

For the fiscal quarters ending June 30, 2003, September 30,

2003, December 31, 2003 and March 31, 2004 (the “Initial Quarters”),

Borrower, in connection with the U.S. Traffic Acquisition, shall calculate

EBITDA of U.S. Traffic for covenant purposes on a pro forma basis as equal to

$4,056,000, and, for each period thereafter, EBITDA shall be calculated as

reported.  For the Initial Quarters,

Borrower’s EBITDA shall be calculated using $4,056,000 as the U.S. Traffic pro

forma EBITDA, in lieu of the U.S. Traffic pro forma EBITDA, and, for all

periods thereafter, Borrower’s EBITDA will be as reported.  For purposes of this Agreement, “Patent

Expenditures” shall mean expenditures of a Person relating to its obtaining,

acquiring and defending patents.

 

ARTICLE VIII:  DEFAULTS

 

8.1                                 Defaults.  Each

of the following occurrences shall constitute a Default under this Agreement:

 

(A)                              Failure

to Make Payments When Due.  The

Borrower shall (i) fail to pay when due any of the Obligations consisting of

principal with respect to the Loans or Reimbursement Obligations and such

failure shall remain unremedied for a period of three (3) days or (ii) shall

fail to pay within five (5) Business Days of the date when due any of the other

Obligations under this Agreement or the other Loan Documents.

 

(B)                                Breach

of Certain Covenants.  The Borrower

shall fail duly and punctually to perform or observe any agreement, covenant or

obligation binding on the Borrower under:

 

69

 

(i)                                     Sections

7.1 or 7.2 and such failure shall continue unremedied for fifteen (15) days, or

 

(ii)                                  Sections

7.3 or 7.4.

 

(C)                                Breach

of Representation or Warranty.  Any

representation or warranty made or deemed made by the Borrower to the

Administrative Agent or any Lender herein or by the Borrower or any of its Subsidiaries

in any of the other Loan Documents or in any statement or certificate at any

time given by any such Person pursuant to any of the Loan Documents shall be

false or misleading in any material respect on the date as of which made (or

deemed made).

 

(D)                               Other

Defaults.  The Borrower shall

default in the performance of or compliance with any term contained in this

Agreement (other than as covered by paragraphs (A) or (B) of this Section

8.1), or the Borrower or any of its Subsidiaries shall default in the

performance of or compliance with any term contained in any of the other Loan

Documents, and such default shall continue for thirty (30) days after the

occurrence thereof.

 

(E)                                 Default

as to Other Indebtedness.  The

Borrower or any of its Subsidiaries shall fail to make any payment when due

(whether by scheduled maturity, required prepayment, acceleration, demand or

otherwise) with respect to any Indebtedness (other than Indebtedness hereunder,

but including, without limitation, Disqualified Stock), beyond any period of

grace provided with respect thereto, which individually or together with other

such Indebtedness as to which any such failure exists has an aggregate

outstanding principal amount in excess of $2,000,000: or any breach, default or

event of default shall occur, or any other condition shall exist under any

instrument, agreement or indenture pertaining to any such Indebtedness having

such aggregate outstanding principal amount, beyond any period of grace, if

any, provided with respect thereto, if the effect thereof is to cause an

acceleration, mandatory redemption, a requirement that the Borrower offer to

purchase such Indebtedness or other required repurchase of such Indebtedness,

or permit the holder(s) of such Indebtedness to accelerate the maturity of any

such Indebtedness; or require a redemption or other repurchase of such

Indebtedness or any such Indebtedness shall be otherwise declared to be due and

payable (by, acceleration or otherwise) or required to be prepaid, redeemed or

otherwise repurchased by the Borrower or any of its Subsidiaries (other than by

a regularly scheduled required prepayment) prior to the stated maturity

thereof.

 

(F)                                 Involuntary

Bankruptcy; Appointment of Receiver, Etc.

 

(i)                                     An

involuntary case shall be commenced against the Borrower, any of the Borrower’s

Domestic Incorporated Subsidiaries, or any of the Borrower’s Significant

Foreign Subsidiaries and the petition shall not be dismissed, stayed, bonded or

discharged within sixty (60) days after commencement of the case: or a court

having jurisdiction in the premises shall enter a decree or order for relief in

respect of the Borrower, any of the Borrower’s Domestic Incorporated

Subsidiaries, or any of the Borrower’s Significant Foreign Subsidiaries in an

involuntary case, under any applicable bankruptcy, insolvency or other similar

law now or hereinafter in effect: or any other similar relief shall be granted

under any applicable federal, state, local or foreign law.

 

70

 

(ii)                                  A

decree or order of a court having jurisdiction in the premises for the

appointment of a receiver, liquidator, sequestrator, trustee, custodian or

other officer having similar powers over the Borrower, any of the Borrower’s

Domestic Incorporated Subsidiaries or any of the Borrower’s Significant Foreign

Subsidiaries or over all or a substantial part of the property of the Borrower,

any of the Borrower’s Domestic Incorporated Subsidiaries or any of the

Borrower’s Significant Foreign Subsidiaries shall be entered; or an interim

receiver, trustee or other custodian of the Borrower, any of the Borrower’s

Domestic Incorporated Subsidiaries or any of the Borrower’s Significant Foreign

Subsidiaries or of all or a substantial part of the property of the Borrower,

any of the Borrower’s Domestic Incorporated Subsidiaries or any of the

Borrower’s Significant Foreign Subsidiaries shall be appointed or a warrant of

attachment, execution or similar process against any substantial part of the

property of the Borrower, any of the Borrower’s Domestic Incorporated

Subsidiaries or any of the Borrower’s Significant Foreign Subsidiaries shall be

issued and any such event shall not be stayed, dismissed, bonded or discharged

within sixty (60) days after entry, appointment or issuance.

 

(G)                                Voluntary

Bankruptcy: Appointment of Receiver, Etc. 

The Borrower, any of the Borrower’s Domestic Incorporated Subsidiaries

or any of the Borrower’s Significant Foreign Subsidiaries shall (i) commence a

voluntary case under any applicable bankruptcy, insolvency or other similar law

now or hereafter in effect, (ii) consent to the entry of an order for relief in

an involuntary case, or to the conversion of an involuntary case to a voluntary

case, under any such law. (iii) consent to the appointment of or taking

possession by a receiver, trustee or other custodian for all or a substantial

part of its property, (iv) make any assignment for the benefit of creditors or

(v) take any corporate action to authorize any of the foregoing.

 

(H)                               Judgments

and Attachments.  Any money

judgment(s) (other than a money judgment covered by insurance as to which the

applicable insurance company has not disclaimed or reserved the right to

disclaim coverage), writ or warrant of attachment, or similar process against

the Borrower or any of its Subsidiaries or any of their respective assets

involving in any single case or in the aggregate an amount in excess of

$3,000,000 is or are entered and shall remain undischarged, unvacated, unbonded

or unstayed for a period of sixty (60) days or in any event later than fifteen

(15) days prior to the date of any proposed sale thereunder.

 

(I)                                    Dissolution.  Any order, judgment or decree shall be

entered against the Borrower decreeing its involuntary dissolution or split up

and such order shall remain undischarged and unstayed for a period in excess of

sixty (60) days or the Borrower shall otherwise dissolve or cease to exist

except as specifically permitted by this Agreement.

 

(J)                                   Loan

Documents.  At any time, for any,’

reason, any Loan Document that materially affects the ability of the

Administration Agent or any of the Lenders to enforce the Obligations ceases to

be in full force and effect or the Borrower or any of the Borrower’s

Subsidiaries party thereto seek to repudiate their respective obligations

thereunder.

 

(K)                               Termination

Event.  Any Termination Event occurs

which is reasonably likely to subject either the Borrower or any member of its

Controlled Group to liability in excess of $3,000,000.

 

71

 

(L)                                 Waiver

of Minimum Funding Standard.  If the

plan administrator of any Plan applies under Section 412(d) of the Code for a

waiver of the minimum funding standards of Section 412(a) of the Code and any

Lender believes the substantial business hardship upon which the application

for the waiver is based could reasonably be expected to subject either the

Borrower or any’ Controlled Group member to liability in excess of $3,000,000.

 

(M)                            Change

of Control.  A Change of Control

shall occur.

 

(N)                               Environmental

Matters.  The Borrower or any of its

Subsidiaries shall be the subject of any proceeding or investigation pertaining

to (i) the Release by the Borrower or any of its Subsidiaries of any

Contaminant into the environment, (ii) the liability of the Borrower or any of

its Subsidiaries arising from the Release by any other Person of any

Contaminant into the environment, or (iii) any violation of any Environmental,

Health or Safety, Requirements of Law which by” the Borrower or any of its Subsidiaries,

which, in any case, has or is reasonably likely to subject the Borrower to

liability (which is not covered by undenied indemnification by a creditworthy

indemnitor) in excess of $3,000,000.

 

(O)                               Subsidiary

Guarantors Revocation.  Any

Subsidiary Guarantor of the Obligations shall terminate or revoke any of its

obligations under the Subsidiary Guaranty or breach any of the material terms

of the Subsidiary Guaranty.

 

A Default shall be deemed

“continuing” until cured or until waived in writing in accordance with Section

9.3.

 

ARTICLE IX:  ACCELERATION, DEFAULTING LENDERS; WAIVERS,

AMENDMENTS AND REMEDIES

 

9.1                                 Termination of Revolving Loan

Commitments; Acceleration. 

If any Default described in Section 8.1(F) or 8.1(G)

occurs with respect to the Borrower, the obligations of the Lenders to make

Loans hereunder and the obligation of any Issuing Banks to issue Letters of

Credit hereunder shall automatically terminate and the Obligations shall

immediately become due and payable without any election or action on the part

of the Administrative Agent or any Lender. If any other Default occurs, the

Required Lenders may terminate or suspend the obligations of the Lenders

to make Loans hereunder and the obligation of the Issuing Banks to issue

Letters of Credit hereunder, or declare the Obligations to be due and payable,

or both, whereupon the Obligations shall become immediately due and payable,

without presentment, demand, protest or notice of any kind, all of which the

Borrower expressly waives.

 

9.2                                 Preservation of Rights.  No delay or omission of the Lenders or the

Administrative Agent to exercise any right under the Loan Documents shall

impair such right or be construed to be a waiver of any Default or an

acquiescence therein, and the making of a Loan or the issuance of a Letter of

Credit notwithstanding the existence of a Default or the inability of the

Borrower to satisfy the conditions precedent to such Loan or issuance of such

Letter of Credit shall not constitute any waiver or acquiescence. Any single or

partial exercise of any such right shall not preclude other or further exercise

thereof or the exercise of any other right, and no waiver, amendment or other

variation of the terms, conditions or provisions of the Loan

 

72

 

Documents whatsoever

shall be valid unless in writing signed by the Lenders required pursuant to Section

9.3, and then only to the extent in such writing specifically set forth.

All remedies contained in the Loan Documents or by law afforded shall be

cumulative and all shall be available to the Administrative Agent and the

Lenders until the Obligations have been paid in full in cash.

 

9.3                                 Amendments. 

Subject to the provisions of this Article IX, the Required

Lenders (or the Administrative Agent with the consent in writing of the

Required Lenders) and the Borrower may enter into agreements supplemental

hereto for the purpose of adding or modifying any provisions to the Loan

Documents or changing in any manner the rights of the Lenders or the Borrower

hereunder or waiving any Default hereunder: provided, however,

that no such supplemental agreement shall, without the consent of each Lender

(which is not a defaulting Lender under the provisions of Sections 2.19 or

10.2) affected thereby:

 

(i)                                     Postpone

or extend the Revolving Loan Termination Date, Term Loan Termination Date, or

any other date fixed for any payment of principal of, or interest on, the

Loans, the Reimbursement Obligations or any fees or other amounts payable to

such Lender or any modifications of the provisions relating to prepayments of

Loans and other Obligations;

 

(ii)                                  Reduce

the principal amount of any Loans or L/C Obligations. or reduce the rate or

extend the time of payment of interest or fees thereon; provided, however,

that a waiver of the application of the default rate of interest pursuant to Section

2.10 hereof shall only require the approval of the Required Lenders;

 

(iii)                               Reduce

the percentage specified in the definition of Required Lenders or any other

percentage of Lenders specified to be the applicable percentage in this

Agreement to act on specified matters or amend the definitions of “Required

Lenders” or “Pro Rata Share”;

 

(iv)                              Increase

the amount of the Revolving Loan Commitment of any Lender hereunder or increase

any Lender’s Pro Rata Share;

 

(v)                                 Permit

the Borrower to assign its rights under this Agreement;

 

(vi)                              Other

than pursuant to a transaction permitted by the terms of this Agreement,

release any Subsidiary Guarantor from its obligations under the Subsidiary

Guaranty; or

 

(vii)                           Amend

this Section 9.3.

 

No amendment of any

provision of this Agreement relating to (a) the Administrative Agent shall be

effective without the written consent of the Administrative Agent, and (b) any

Issuing Bank shall be effective without the written consent of such Issuing

Bank.  The Administrative Agent

may waive payment of the fee required under Section 13.3(C) without

obtaining the consent of any of the Lenders.

 

73

 

ARTICLE

X:  GENERAL PROVISIONS

 

10.1                           Survival of Representations.  All representations and warranties of the

Borrower contained in this Agreement shall survive delivery of this Agreement

and the making of the Loans herein contemplated so long as any principal,

accrued interest, fees, or any other amount due and payable under any Loan

Document is outstanding and unpaid (other than contingent reimbursement and

indemnification obligations) and so long as the Commitments have not been

terminated.

 

10.2                           Governmental Regulation.  Anything contained in this Agreement to the

contrary notwithstanding, no Lender shall be obligated to extend credit to the

Borrower in violation of any limitation or prohibition provided by any

applicable statute or regulation.

 

10.3                           Intentionally Omitted.

 

10.4                           Headings. 

Section headings in the Loan Documents are for convenience of reference

only. and shall not govern the interpretation of any of the provisions of the

Loan Documents.

 

10.5                           Entire Agreement.  The Loan Documents embody the entire agreement and understanding

among the Borrower, the Administrative Agent and the Lenders and supersede all

prior agreements and understandings among the Borrower, the Administrative

Agent and the Lenders relating to the subject matter thereof.

 

10.6                           Several Obligations; Benefits of this

Agreement.  The respective

obligations of the Lenders hereunder are several and not joint and no Lender

shall be the partner or agent of any other Lender (except to the extent to

which the Administrative Agent is authorized to act as such).  The failure of any Lender to perform any of

its obligations hereunder shall not relieve any other Lender from any of its

obligations hereunder.  This Agreement shall

not be construed so as to confer any right or benefit upon any Person other

than the parties to this Agreement and their respective successors and assigns.

 

10.7                           Expenses; Indemnification.

 

(A)                              Expenses.  The Borrower shall reimburse the

Administrative Agent for any reasonable costs and out-of-pocket expenses

(including reasonable attorneys’ and paralegals’ fees and time charges of

attorneys and paralegals for the Administrative Agent which attorneys and

paralegals may be employees of the Administrative Agent) paid or incurred

by the Administrative Agent in connection with the preparation, negotiation,

execution, delivery, syndication, review, amendment, modification, and

administration of the Loan Documents. 

The Borrower also agrees to reimburse the Administrative Agent and the

Lenders for any costs, internal charges and out-of-pocket expenses (including

reasonable attorneys’ and paralegals’ fees and time charges of attorneys and

paralegals for the Administrative Agent and the Lenders, which attorneys and

paralegals may be employees of the Administrative Agent or the Lenders)

paid or incurred by the Administrative Agent or any Lender in connection with

the collection of the Obligations and enforcement of the Loan Documents.

 

(B)                                Indemnity.  The Borrower further agrees to defend,

protect, indemnify, and hold harmless the Administrative Agent and each and all

of the Lenders and each of their respective Affiliates, and each of such

Administrative Agent’s, Lender’s, or Affiliate’s respective

 

74

 

officers, directors,

trustees, investment advisors, employees, attorneys and agents (including,

without limitation, those retained in connection with the satisfaction or

attempted satisfaction of any of the conditions set forth in Article V)

(collectively, the “Indemnitees”), based upon its obligations, from and

against any and all liabilities, obligations, losses, damages, penalties,

actions, judgments, suits, claims, costs, expenses of any kind or nature

whatsoever (including, without limitation, the fees and disbursements of

counsel for such Indemnitees in connection with any investigative,

administrative or judicial proceeding, whether or not such Indemnitees shall be

designated a party thereto), imposed on. incurred by, or asserted against such

Indemnitees in any manner relating to or arising out of:

 

(i)                                     this

Agreement or any of the other Loan Documents, or any act. event or transaction

related or attendant thereto or to the making of the Loans, and the issuance of

and participation in Letters of Credit hereunder, the management of such Loans

or Letters of Credit, the use or intended use of the proceeds of the Loans or

Letters of Credit hereunder, or any of the other transactions contemplated by

the Loan Documents; or

 

(ii)                                  any

liabilities, obligations, responsibilities, losses, damages, personal injury,

death, punitive damages, economic damages, consequential damages, treble

damages, intentional, willful or wanton injury, damage or threat to the

environment, natural resources or public health or welfare, costs and expenses

(including, without limitation, attorney, expert and consulting fees and costs

of investigation, feasibility or remedial action studies), fines, penalties and

monetary sanctions, interest, direct or indirect, known or unknown, absolute or

contingent, past, present or future relating to violation of any Environmental,

Health or Safety Requirements of Law arising from or in connection with the

past, present or future operations of the Borrower, its Subsidiaries or any of

their respective predecessors in interest, or, the past, present or future

environmental, health or safety condition of any respective property of the

Borrower or its Subsidiaries, the presence of asbestos-containing materials at

any respective property of the Borrower or its Subsidiaries or the Release or

threatened Release of any Contaminant into the environment (collectively, the “Indemnified

Matters”);

 

provided,

however, the Borrower shall have no obligation to an Indemnitee

hereunder with respect to Indemnified Matters to the extent caused by or

resulting from the willful misconduct or gross negligence of such Indemnitee

with respect to the Loan Documents, as determined by the final non-appealable

judgment of a court of competent jurisdiction. If the undertaking to indemnify,

pay and hold harmless set forth in the preceding sentence may be

unenforceable because it is violative of any law or public policy, the Borrower

shall contribute the maximum portion which it is permitted to pay and satisfy

under applicable law, to the payment and satisfaction of all Indemnified

Matters incurred by the Indemnitees.

 

(C)                                Waiver

of Certain Claims; Settlement of Claims. 

The Borrower further agrees to assert no claim against any of the

Indemnitees on any theory of liability seeking consequential, special,

indirect, exemplary or punitive damages. 

No settlement shall be entered into by the Borrower or any of its

Subsidiaries with respect to any claim, litigation, arbitration or other

proceeding relating to or arising out of the transactions evidenced by this

Agreement, the

 

75

 

other Loan Documents

unless such settlement releases all Indemnitees from any and all liability with

respect thereto.

 

(D)                               Survival

of Agreements.  The obligations and

agreements of the Borrower under this Section 10.7 shall survive the

termination of this Agreement.

 

10.8                           Numbers of Documents.  All statements, notices, closing documents,

and requests hereunder shall be furnished to the Administrative Agent with

sufficient counterparts so that the Administrative Agent may furnish one

to each of the Lenders.

 

10.9                           Confidentiality.  Each Lender agrees to hold any confidential information which it

may receive from the Borrower pursuant to this Agreement in confidence,

except for disclosure (i) to its Affiliates and to other Lenders and their

respective Affiliates who are expected to be involved in the evaluation of such

information and who are advised of the confidential nature of the information,

(ii) to legal counsel, accountants, and other professional advisors to such

Lender or to a Transferee, (iii) to regulatory officials, (iv) to any Person as

requested pursuant to or as required by law, regulation, or legal process, (v)

to any Person in connection with any legal proceeding to which such Lender is a

party, (vi) to such Lender’s direct or indirect contractual counterparties in

Hedging Agreements or to legal counsel, accountants and other professional

advisors to such counterparties, (vii) permitted by Section 13.4, and

(viii) to rating requires if requested or required by such agencies in

connection with a rating relating to the Advances hereunder.

 

10.10                     Severability of Provisions.  Any provision in any Loan Document that is

held to be inoperative, unenforceable, or invalid in any jurisdiction shall, as

to that jurisdiction, be inoperative, unenforceable, or invalid without

affecting the remaining provisions in that .jurisdiction or the operation,

enforceability, or validity of that provision in any other jurisdiction, and to

this end the provisions of all Loan Documents are declared to be severable.

 

10.11                     Nonliability of Lenders.  The relationship between the Borrower and

the Lenders and the Administrative Agent shall be solely that of borrower and

lender.  Neither the Administrative

Agent nor any Lender shall have any fiduciary responsibilities to the Borrower.

Neither the Administrative Agent nor any Lender undertakes any responsibility

to the Borrower to review or inform the Borrower of any matter in connection

with any phase of the Borrower’s business or operations.

 

10.12                     GOVERNING LAW. 

ANY DISPUTE BETWEEN THE BORROWER AND THE ADMINISTRATIVE AGENT OR ANY

LENDER ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE

RELATIONSHIP ESTABLISHED AMONG THE BORROWER AND THE LENDERS IN CONNECTION WITH,

THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS, AND WHETHER ARISING IN

CONTRACT, TORT, EQUITY, OR OTHERWISE, SHALL BE RESOLVED IN ACCORDANCE WITH THE

INTERNAL LAWS (INCLUDING 735 ILCS SECTION 105/5-1 ET SEQ. BUT OTHERWISE WITHOUT

REGARD TO THE CONFLICTS OF LAWS PROVISIONS) OF THE STATE OF ILLINOIS.

 

76

 

10.13                     CONSENT TO JURISDICTION; SERVICE OF

PROCESS: JURY TRIAL.

 

(A)                              NON-EXCLUSIVE

JURISDICTION.  THE BORROWER HEREBY

IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES

FEDERAL OR ILLINOIS STATE COURT SITTING IN CHICAGO, ILLINOIS IN ANY ACTION OR

PROCEEDING ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENTS AND THE BORROWER

HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR

PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY

WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY

SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS

AN INCONVENIENT FORUM.  NOTHING HEREIN

SHALL LIMIT THE RIGHT OF THE ADMINISTRATIVE AGENT OR ANY LENDER TO BRING

PROCEEDINGS AGAINST THE BORROWER IN THE COURTS OF ANY OTHER JURISDICTION.  ANY JUDICIAL PROCEEDING BY THE BORROWER

AGAINST THE ADMINISTRATIVE AGENT OR ANY LENDER OR ANY AFFILIATE OF THE AGENT OR

ANY LENDER INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT

OF, RELATED TO, OR CONNECTED WITH ANY LOAN DOCUMENT SHALL BE BROUGHT ONLY IN A

COURT IN CHICAGO, ILLINOIS.

 

(B)                                SERVICE

OF PROCESS.  THE BORROWER WAIVES PERSONAL

SERVICE OF ANY PROCESS UPON IT AND IRREVOCABLY CONSENTS TO THE SERVICE OF

PROCESS OF ANY WRITS, PROCESS OR SUMMONSES IN ANY SUIT, ACTION OR PROCEEDING BY

THE MAILING THEREOF BY THE ADMINISTRATIVE AGENT OR THE LENDERS BY REGISTERED OR

CERTIFIED MAIL, POSTAGE PREPAID, TO THE BORROWER ADDRESSED AS PROVIDED

HEREIN.  NOTHING HEREIN SHALL IN ANY WAY

BE DEEMED TO LIMIT THE ABILITY OF THE ADMINISTRATIVE AGENT OR THE LENDERS TO

SERVE ANY SUCH WRITS, PROCESS OR SUMMONSES IN ANY OTHER MANNER PERMITTED BY

APPLICABLE LAW.

 

(C)                                WAIVER

OF JURY TRIAL.  EACH OF THE PARTIES

HERETO IRREVOCABLY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY

DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE, ARISING OUT OF,

CONNECTED WITH, RELATED TO OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG

THEM IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER INSTRUMENT, DOCUMENT OR

AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH.  EACH OF THE PARTIES HERETO AGREES AND

CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE

DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT ANY PARTY HERETO MAY FILE

AN ORIGINAL COUNTERPART OR A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN

EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO

TRIAL BY JURY.

 

77

 

(D)                               ADVICE

OF COUNSEL.  EACH OF THE PARTIES

REPRESENTS TO EACH OTHER PARTY HERETO THAT IT HAS DISCUSSED THIS AGREEMENT AND,

SPECIFICALLY, THE PROVISIONS OF SECTION 10.7 AND THIS SECTION 10.13, WITH ITS

COUNSEL.

 

10.14                     Subordination of Intercompany Indebtedness.  The Borrower agrees that any and all claims

of the Borrower against any of its Subsidiary Guarantors with respect to any

indebtedness of any Subsidiary Guarantor to the Borrower (“Intercompany

Indebtedness”), any endorser, obligor or any other Subsidiary Guarantor of

all or any part of the Obligations, or against any of its properties,

including, without limitation, claims arising from liens or security interests

upon property, shall be subordinate and subject in right of payment to the

prior payment, in full and in cash, of all Obligations: provided that,

and not in contravention of the foregoing, so long as no Default has occurred

and is continuing the Borrower may make loans to and receive payments in

the ordinary course with respect to such Intercompany Indebtedness from each

such Subsidiary Guarantor to the extent permitted by the terms of this

Agreement and the other Loan Documents. 

Should any payment, distribution, security or instrument or proceeds

thereof be received by the Borrower upon or with respect to the Intercompany

Indebtedness in contravention of this Agreement or the Loan Documents or after

the occurrence of a Default, including, without limitation, an event described

in Section 8.1(F) or (G) prior to the satisfaction of all of the

Obligations (other than contingent indemnity obligations) and the termination

of all financing arrangements pursuant to any Loan Document or Hedging

Agreement among the Borrower and the Lenders (and their Affiliates), the

Borrower shall receive and hold the same in trust, as trustee, for the benefit

of the holders of the Obligations and shall forthwith deliver the same to the

Administrative Agent, for the benefit of such Persons, in precisely the form

received (except for the endorsement or assignment of the Borrower where

necessary), for application to any of the Obligations, due or not due, and,

until so delivered, the same shall be held in trust by the Borrower as the

property of the holders of the Obligations. 

If the Borrower fails to make any such endorsement or assignment to the

Administrative Agent, the Administrative Agent or any of its officers or

employees are irrevocably authorized to make the same.  The Borrower agrees that until the

Obligations involving the payment of monies (other than the contingent

indemnity obligations) have been paid in full (in cash) and satisfied and all

financing arrangements pursuant to any Loan Document or Hedging Agreement among

the Borrower and the Lenders (and their Affiliates) have been terminated, the

Borrower will not assign or transfer to any Person (other than the

Administrative Agent) any claim the Borrower has or may have against any

Subsidiary Guarantor.

 

ARTICLE

XI:  THE ADMINISTRATIVE AGENT

 

11.1                           Appointment; Nature of Relationship.  The Northern Trust Company is appointed by

the Lenders as the Administrative Agent hereunder and under each other Loan

Document, and each of the Lenders irrevocably authorizes the Administrative

Agent to act as the contractual representative of such Lender with the rights

and duties expressly set forth herein and in the other Loan Documents.  The Administrative Agent agrees to act as

such contractual representative upon the express conditions contained in this Article

XI.  Notwithstanding the use of the

defined term “Administrative Agent,” it is expressly understood and agreed that

the Administrative Agent shall not have any fiduciary responsibilities to any

Lender by reason of this Agreement and that the Administrative Agent is merely

acting as the representative of the

 

78

 

Lenders with only those

duties as are expressly set forth in this Agreement and the other Loan

Documents.  In its capacity as the

Lenders’ contractual representative, the Administrative Agent (i) does not

assume any fiduciary duties to any of the Lenders, (ii) is a “representative”

of the Lenders within the meaning of Section 9-102 of the Uniform Commercial

Code and (iii) is acting as an independent contractor, the rights and duties of

which are limited to those expressly set forth in this Agreement and the other

Loan Documents.  Each of the Lenders,

for itself and on behalf of its affiliates, agrees to assert no claim against

the Administrative Agent on any agency theory or any other theory of liability

for breach of fiduciary duty, all of which claims each Lender waives.

 

11.2                           Powers.  The

Administrative Agent shall have and may exercise such powers under the

Loan Documents as are specifically delegated to the Administrative Agent by the

terms of each thereof, together with such powers as are reasonably incidental

thereto.  The Administrative Agent shall

have no implied duties or fiduciary duties to the Lenders, or any obligation to

the Lenders to take any action hereunder or under any of the other Loan

Documents except any action specifically provided by the Loan Documents

required to be taken by the Administrative Agent.

 

11.3                           General Immunity.  Neither the Administrative Agent nor any of its directors,

officers, agents or employees shall be liable to the Borrower, the Lenders or

any Lender for any action taken or omitted to be taken by it or them hereunder

or under any other Loan Document or in connection herewith or therewith except

to the extent such action or inaction is found in a final judgment by a court

of competent jurisdiction to have arisen solely from the gross negligence or

willful misconduct of such Person.

 

11.4                           No Responsibility for Loans,

Creditworthiness, Recitals, Etc. 

Neither the Administrative Agent nor any of its directors, officers,

agents or employees shall be responsible for or have any duty to ascertain,

inquire into, or verify (i) any statement, warranty or representation made in

connection with any Loan Document or any borrowing hereunder; (ii) the

performance or observance of any of the covenants or agreements of any obligor

under any Loan Document; (iii) the satisfaction of any condition specified in Article

V, except receipt of items required to be delivered solely to the

Administrative Agent; (iv) the existence or possible existence of any Default

or (v) the validity, effectiveness or genuineness of any Loan Document or any

other instrument or writing furnished in connection therewith.  The Administrative Agent shall not be

responsible to any Lender for any recitals, statements, representations or

warranties herein or in any of the other Loan Documents for the execution,

effectiveness, genuineness, validity, legality, enforceability, collectibility,

or sufficiency of this Agreement or any of the other Loan Documents or the

transactions contemplated thereby, or for the financial condition of any

Subsidiary Guarantor of any or all of the Obligations, the Borrower or any of

its Subsidiaries.

 

11.5                           Action on Instructions of Lenders.  The Administrative Agent shall in all cases

be fully protected in acting, or in refraining from acting, hereunder and under

any other Loan Document in accordance with written instructions signed by the

Required Lenders (or all of the Lenders in the event that and to the extent

that this Agreement expressly requires such), and such instructions and any

action taken or failure to act pursuant thereto shall be binding on all of the

Lenders and on all owners of Loans. 

Upon receipt of any such instructions from the

 

79

 

Required Lenders (or all

of the Lenders in the even that and to the extent that this Agreement expressly

requires such), the Administrative Agent shall be permitted to act on behalf of

the full principal amount of the Obligations. 

The Administrative Agent shall be fully justified in failing or refusing

to take any action hereunder and under any other Loan Document unless it shall

first be indemnified to its satisfaction by: the Lenders pro rata against any

and all liability, cost and expense that it may incur by reason of taking

or continuing to take any such action.

 

11.6                           Employment of Administrative Agent

and Counsel.  The Administrative

Agent may execute any of its duties as the Administrative Agent hereunder

and under any other Loan Document by or through employees, agents, and

attorney-in-fact and shall not be answerable to the Lenders, except as to money

or securities received by it or its authorized agents, for the default or

misconduct of any such agents or attorneys-in-fact selected by it with

reasonable care. The Administrative Agent shall be entitled to advice of

counsel concerning the contractual arrangement between the Administrative Agent

and the Lenders and all matters pertaining to the Administrative Agent’s duties

hereunder and under any other Loan Document.

 

11.7                           Reliance on Documents; Counsel.  The Administrative Agent shall be entitled

to rely upon any notice, consent, certificate, affidavit, letter, telegram,

statement, paper or document believed by it to be genuine and correct and to

have been signed or sent by the proper person or persons, and, in respect to

legal matters, upon the opinion of counsel selected by the Administrative

Agent, which counsel may be employees of the Administrative Agent.

 

11.8                           The Administrative Agent’s

Reimbursement and Indemnification.  The Lenders agree to reimburse and indemnify the Administrative

Agent ratably in proportion to its respective Pro Rata Shares (i) for any

amounts not reimbursed by the Borrower for which the Administrative Agent is

entitled to reimbursement by the Borrower under the Loan Documents, (ii) for

any other expenses incurred by the Administrative Agent on behalf of the

Lenders, in connection with the preparation, execution, delivery,

administration and enforcement of the Loan Documents and (iii) for any

liabilities, obligations, losses, damages, penalties, actions, judgments,

suits, costs, expenses or disbursements of any kind and nature whatsoever which

may be imposed on, incurred by or asserted against the Administrative

Agent in any way relating to or arising out of the Loan Documents or any other

document delivered in connection therewith or the transactions contemplated

thereby, or the enforcement of any of the terms thereof or of any such other

documents, provided that no Lender shall be liable for any of the foregoing to

the extent any of the foregoing is found in a final non-appealable judgment by

a court of competent jurisdiction to have arisen solely from the gross

negligence or willful misconduct of the Administrative Agent.

 

11.9                           Rights as a Lender.  With respect to its Revolving Loan Commitment, Term Loan

Commitment, Loans made by it, and Letters of Credit issued by it, the

Administrative Agent shall have the same rights and powers hereunder and under

any other Loan Documents as any Lender or Issuing Bank and may exercise

the same as though it were not the Administrative Agent, and the term “Lender”

or “Lenders”, “Issuing Bank” or “Issuing Banks” shall, unless the context

otherwise indicates, include the Administrative Agent in its individual

capacity.  The Administrative Agent

may accept deposits from, lend money to, and generally engage in any kind

of trust, debt, equity or other transaction, in addition to those contemplated

by this

 

80

 

Agreement or any other

Loan Document, with the Borrower or any of its Subsidiaries in which such

Person is not prohibited hereby from engaging with any other Person.

 

11.10                     Lender Credit Decision.  Each Lender acknowledges that it has,

independently and without reliance upon the Administrative Agent or any other

Lender and based on the financial statements prepared by the Borrower and such

other documents and information as it has deemed appropriate, made its own

credit analysis and decision to enter into this Agreement and the other Loan

Documents.  Each Lender also

acknowledges that it will, independently and without reliance upon the Administrative

Agent or any other Lender and based on such documents and information as it

shall deem appropriate at the time, continue to make its own credit decisions

in taking or not taking action under this Agreement and the other Loan

Documents.

 

11.11                     Successor Administrative Agent.  The Administrative Agent may resign at

any time by giving written notice thereof to the Lenders and the Borrower.  Upon any such resignation, the Required

Lenders shall have the right to appoint, on behalf of the Borrower and the

Lenders, a successor Administrative Agent. 

If no successor Administrative Agent shall have been so appointed by the

Required Lenders and shall have accepted such appointment within thirty days

after the retiring Administrative Agent’s giving notice of resignation, then

the retiring Administrative Agent may appoint, on behalf of the Borrower

and the Lenders, a successor Administrative Agent.  Notwithstanding anything herein to the contrary, so long as no

Default has occurred and is continuing, each such successor Administrative

Agent shall be subject to approval by the Borrower, which approval shall not be

unreasonably withheld.  Such successor

Administrative Agent shall be a commercial bank having capital and retained

earnings of at least $500,000,000.  Upon

the acceptance of any appointment as the Administrative Agent hereunder by a

successor Administrative Agent, such successor Administrative Agent shall

thereupon succeed to and become vested with all the rights, powers, privileges

and duties of the retiring Administrative Agent, and the retiring

Administrative Agent shall be discharged from its duties and obligations

hereunder and under the other Loan Documents. 

After any retiring Administrative Agent’s resignation hereunder as

Administrative Agent, the provisions of this Article XI shall continue

in effect for its benefit in respect of any actions taken or omitted to be

taken by it while it was acting as the Administrative Agent hereunder and under

the other Loan Documents.

 

11.12                     No Duties Imposed Upon Co-Agent.  No Person identified on the cover page to

this Agreement, the signature pages to this Agreement or otherwise in this

Agreement as a “Co-Agent” shall have any right, power, obligation, liability,

responsibility or duty under this Agreement other than if such Person is a

Lender, those applicable to all Lenders as such.  Without limiting the foregoing, no Person identified on the cover

page to this Agreement, the signature pages to this Agreement or otherwise in

this Agreement as an “Co-Agent” shall have or be deemed to have any fiduciary

duty to or fiduciary relationship with any Lender.  In addition to the agreement set forth in Section 11.10,

each of the Lenders acknowledges that it has not relied, and will not rely, on

any Person so identified in deciding to enter into this Agreement or in taking

or not taking action hereunder.

 

11.13                     Notice of Default.  The Administrative Agent shall not be deemed to have knowledge or

notice of the occurrence of any Default or Unmatured Default hereunder unless

the

 

81

 

Administrative Agent has

received written notice from a Lender or the Borrower referring to this

Agreement describing such Default or Unmatured Default and stating that such

notice is a “notice of default”.  In the

event that the Administrative Agent receives such a notice, the Administrative

Agent shall give prompt notice thereof to the Lenders.

 

11.14                     Delegation to Affiliates.  The Borrower and the Lenders agree that the

Administrative Agent may delegate any of its duties under this Agreement

to any of its Affiliates.  Any such

Affiliate (and such Affiliate’s directors, officers, agents, and employees)

which performs duties in connection with this Agreement shall be entitled to

the same benefits of the indemnification, waiver and other protective

provisions to which the Administrative Agent is entitled under terms of this

Agreement.

 

11.15                     Subordination Agreement and

Subsidiary Guaranty.  Each Lender

authorizes the Administrative Agent to enter into such of the Subordination

Agreement and any Subsidiary Guaranty on behalf and for the benefit of such

Lender and to take all actions contemplated by such documents, including,

without limitation, all enforcement actions.

 

ARTICLE XII:  SETOFF, RATABLE PAYMENTS

 

12.1                           Setoff.  In

addition to, and without limitation of, any rights of the Lenders under

applicable law, if any Default occurs and is continuing, any Indebtedness from

any Lender to the Borrower (including all account balances, whether provisional

or final and whether or not collected or available) may be offset and

applied toward the payment of the Obligations owing to such Lender, whether or

not the Obligations, or any part hereof, shall then be due.

 

12.2                           Ratable Payments.  If any Lender, whether by setoff or otherwise, has payment made to

it upon its Loans (other than payments received pursuant to Sections 2.14(E),

4.I, 4.2, or 4.4) in a greater proportion than that

received by any other Lender, such Lender agrees, promptly upon demand, to

purchase a portion of the Loans held by the other Lenders so that after such

purchase each Lender will hold its ratable proportion of Loans.  If any Lender, whether in connection with

setoff or amounts which might be subject to setoff or otherwise, receives collateral

or other protection for its Obligations or such amounts which may be

subject to setoff such Lender agrees, promptly upon demand, to take such action

necessary such that all Lenders share in the benefits of such collateral

ratably in proportion to the obligations owing to them.  In case any such payment is disturbed by

legal process, or otherwise, appropriate further adjustments shall be made.

 

12.3                           Application of Payments.  If the Borrower, prior to the occurrence of

a Default, has remitted a payment to the Administrative Agent or any Lender

without indicating the Obligation to be reduced thereby, or at any time after

the occurrence of a Default, subject to the provisions of Section 9.2,

the Administrative Agent shall, unless otherwise specified at the direction of

the Required Lenders which direction shall be consistent with the last sentence

of this Section 12.3, apply all payments and prepayments in respect of

any Obligations in the following order:

 

82

 

(A)                              first,

to pay interest on and then principal of any portion of the Loans which the

Administrative Agent may have advanced on behalf of any Lender for which

the Administrative Agent has not then been reimbursed by such Lender or the

Borrower;

 

(B)                                second,

to pay Obligations in respect of any fees, expenses, reimbursements or

indemnities then due to the Administrative Agent;

 

(C)                                third,

to pay Obligations in respect of any fees, expenses, reimbursements or

indemnities then due to the Lenders and the issuer(s) of Letters of Credit;

 

(D)                               fourth,

to pay interest due in respect of Term Loans;

 

(E)                                 fifth,

to pay interest due in respect of Loans (other than Term Loans and L/C

Obligations);

 

(F)                                 sixth,

to the ratable payment or prepayment of principal outstanding on Term Loans;

 

(G)                                seventh,

to the ratable payment or prepayment of principal outstanding on Loans (other

than Term Loans) and Reimbursement Obligations in such order as the

Administrative Agent may determine in its sole discretion;

 

(H)                               eighth,

to provide required cash collateral, if required pursuant to Section 3.11;

and

 

(I)                                    ninth,

to the ratable payment of all other Obligations.

 

Unless otherwise designated (which designation shall

only be applicable prior to the occurrence of a Default) by the Borrower, all

principal payments in respect of Loans shall be applied first, to repay

outstanding Floating Rate Loans, and then to repay outstanding

Eurodollar Rate Loans with those Eurodollar Rate Loans which have earlier

expiring Interest Periods being repaid prior to those which have later expiring

Interest Periods.  The order of priority

set forth in this Section 12.3 and the related provisions of this

Agreement are set forth solely to determine the rights and priorities of the

Administrative Agent, the Lenders and the issuer(s) of Letters of Credit as

among themselves.  Upon written notice

to the Borrower, the order of priority set forth in clauses (C) through (I)

of this Section 12.3 may at any time and from time to time be

changed by the Required Lenders without consent of or approval by the Borrower

or any other Person.  The order of

priority set forth in clauses (A) and (B) of this Section 12.3

may be changed only with the prior written consent of the Administrative

Agent.

 

12.4                           Relations Among Lenders.

 

(A)                              Except

with respect to the exercise of set-off rights of any Lender in accordance with

Section 12.1, the proceeds of which are applied in accordance with this

Agreement, and except as set forth in the following sentence, each Lender

agrees that it will not take any action, nor institute any actions or

proceedings, against the Borrower or any other obligor hereunder or with

respect to any Loan Document, without the prior written consent of the

 

83

 

Required Lenders or, as

may be provided in this Agreement or the other Loan Documents, at the

direction of the Administrative Agent.

 

(B)                                The

Lenders are not partners or co-venturers, and no Lender shall be liable for the

acts or omissions of, or (except as otherwise set forth herein in case of the

Administrative Agent) authorized to act for, any other Lender.  The Administrative Agent shall have the

exclusive right on behalf of the Lenders to enforce on the payment of the

principal of and interest on any Loan after the date such principal or interest

has become due and payable pursuant to the terms of this Agreement.

 

12.5                           Representations and Covenants Among

Lenders.  Each Lender represents and

covenants for the benefit of all other Lenders and the Administrative Agent

that such Lender is not satisfying and shall not satisfy any of its obligations

pursuant to this Agreement with any assets considered for any purposes of ERISA

or Section 4975 of the Code to be assets of or on behalf of any “plan” as

defined in section 3(3) of ERISA or section 4975 of the Code, regardless of

whether subject to ERISA or Section 4975 of the Code.

 

ARTICLE

XIII:  BENEFIT OF AGREEMENT;

ASSIGNMENTS; PARTICIPATIONS

 

13.1                           Successors and Assigns; Designated

Lenders.

 

(A)                              Successors

and Assigns.  The terms and

provisions of the Loan Documents shall be binding upon and inure to the benefit

of the Borrower, the Administrative Agent and the Lenders and their respective

successors and assigns permitted hereby, except that (i) the Borrower shall not

have the right to assign its rights or obligations under the Loan Documents

without the prior written consent of each Lender, (ii) any assignment by any

Lender must be made in compliance with Section 13.3, and (iii) any

transfer by Participants must be made in compliance with Section 13.2.  Any attempted assignment or transfer by any

party not made in compliance with this Section 13.1 shall be null and

void, unless such attempted assignment or transfer is treated as a

participation in accordance with Section 13.3(B).  The parties to this Agreement acknowledge

that clause (ii) of this Section 13.l relates only to absolute

assignments and this Section 13.1 does not prohibit assignments

creating security interests, including, without limitation; (x) any pledge or

assignment by any Lender of all or any portion of its rights under this

Agreement and any promissory note issued hereunder to a Federal Reserve Bank,

(y) in the case of a Lender which is a Fund, any pledge or assignment of all or

any portion of its rights under this Agreement and any promissory note issued

hereunder to its trustee in support of its obligations to its trustee or (z)

any pledge or assignment by any Lender of all or any portion of its rights

under this Agreement and any promissory note issued hereunder to direct or

indirect contractual counterparties in interest rate swap agreements relating

to the Loans, but in all cases excluding credit default swaps; provided, however,

that no such pledge or assignment creating a security interest shall release

the transferor Lender from its obligations hereunder unless and until the

parties thereto have complied with the provisions of Section 13.3.  The Administrative Agent may treat the

Person which made any Revolving Loan or which holds any promissory note issued

hereunder as the owner thereof for all purposes hereof unless and until such

Person complies with Section 13.3; provided,

however, that the Administrative

Agent may in its discretion (but shall not be required to) follow

instructions from the Person which made 

 

84

 

any Revolving Loan or

which holds any promissory note issued hereunder to direct payments relating to

such Revolving Loan or promissory note issued hereunder to another Person.  Any assignee of the rights to any Revolving

Loan or any promissory note issued hereunder agrees by acceptance of such

assignment to be bound by all the terms and provisions of the Loan

Documents.  Any request, authority or

consent of any Person, who at the time of making such request or giving such authority

or consent is the owner of the rights to any Loan (whether or not a promissory

note has been issued hereunder in evidence thereof), shall be conclusive and

binding on any subsequent holder or assignee of the rights to such Loan.

 

(B)                                Designated

Lenders.

 

(i)                                     Subject

to the terms and conditions set forth in this Section 13.1(B), any

Lender may from time to time elect to designate an Eligible Designee to

provide all or any part of the Loans to be made by such Lender pursuant to this

Agreement; provided that the designation of an Eligible Designee by any

Lender for purposes of this Section 13.1(B) shall be subject to the

approval of the Administrative Agent (which consent shall not be unreasonably

withheld or delayed).  Upon the

execution by the parties to each such designation of an agreement in the form

of Exhibit L hereto (a “Designation Agreement”) and the

acceptance thereof by the Administrative Agent, the Eligible Designee shall

become a Designated Lender for purposes of this Agreement.  The Designating Lender shall thereafter have

the right to permit the Designated Lender to provide all or a portion of the

Loans to be made by the Designating Lender pursuant to the terms of this

Agreement and the making of the Loans or portion thereof shall satisfy the

obligations of the Designating Lender to the same extent, and as if, such Loan

was made by the Designating Lender.  As

to any Loan made by it, each Designated Lender shall have all the rights a

Lender making such Loan would have under this Agreement and otherwise; provided,

(x) that all voting rights under this Agreement shall be exercised solely by

the Designating Lender, (y) each Designating Lender shall remain solely

responsible to the other parties hereto for its obligations under this

Agreement, including the obligations of a Lender in respect of Loans made by

its Designated Lender and (z) no Designated Lender shall be entitled to

reimbursement under Article IV hereof for any amount which would exceed

the amount that would have been payable by the Borrower to the Lender from

which the Designated Lender obtained any interests hereunder.  No additional promissory notes shall be

required to be issued hereunder with respect to Loans provided by a Designated

Lender; provided, however, to the extent any Designated Lender

shall advance funds, the Designating Lender shall be deemed to hold the

promissory notes issued hereunder in its possession as an administrative agent

for such Designated Lender to the extent of the Loan tended by such Designated

Lender.  Such Designating Lender shall

act as an administrative agent for its Designated Lender and give and receive

notices and communications hereunder. 

Any payments for the account of any Designated Lender shall be paid to

its Designating Lender as administrative agent for such Designated Lender and

neither the Borrower nor the Administrative Agent shall be responsible for any

Designating Lender’s application of such payments.  In addition, any Designated Lender may (1) with notice to,

but without the consent of the Borrower or the Administrative Agent, assign all

or portions of its interests in any Loans to its Designating Lender or to any

financial institution consented to by the Administrative Agent providing

liquidity and/or credit facilities to or for the

 

85

 

account of such

Designated Lender and (2) subject to advising any such Person that such

information is to be treated as confidential in accordance with Section 13.4,

disclose on a confidential basis any non-public information relating to its

Loans to any rating agency, commercial paper dealer or provider of any

guarantee, surety or credit or liquidity enhancement to such Designated Lender.

 

(ii)                                  Each

party to this Agreement hereby agrees that it shall not institute against, or

join any other Person in instituting against, any Designated Lender any

bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding

or other proceedings under any federal or state bankruptcy or similar law for

one year and a day after the payment in full of all outstanding senior

indebtedness of any Designated Lender; provided that the Designating

Lender for each Designated Lender hereby agrees to indemnity, save and hold

harmless each other party hereto for any loss, cost, damage and expense arising

out of its inability to institute any such proceeding against such Designated

Lender.  This Section 13.1(B)

shall survive the termination of this Agreement.

 

13.2                           Participations.

 

(A)                              Permitted

Participants; Effect.  Any Lender

may at any time sell to one or more banks or other entities (“Participants”)

participating interests in any Revolving Credit Obligations of such Lender, any

promissory note issued hereunder held by such Lender, any Revolving Loan

Commitment of such Lender or any other interest of such Lender under the Loan

Documents.  In the event of any such

sale by a Lender of participating interests to a Participant, such Lender’s

obligations under the Loan Documents shall remain unchanged, such Lender shall

remain solely responsible to the other parties hereto for the performance of

such obligations, such Lender shall remain the owner of its Revolving Credit

Obligations and the holder of any promissory note issued to it hereunder in

evidence thereof for all purposes under the Loan Documents, all amounts payable

by the Borrower under this Agreement shall be determined as if such Lender had

not sold such participating interests, and the Borrower and the Administrative

Agent shall continue to deal solely and directly with such Lender in connection

with such Lender’s rights and obligations under the Loan Documents.

 

(B)                                Voting

Rights.  Each Lender shall retain

the sole right to approve, without the consent of any Participant, any

amendment, modification or waiver of any provision of the Loan Documents other

than any amendment, modification or waiver with respect to any Loan or

Revolving Loan Commitment in which such Participant has an interest which would

require consent of all of the Lenders pursuant to the terms of Section 9.3.

 

(C)                                Benefit

of Certain Provisions.  The Borrower

agrees that each Participant shall be deemed to have the right of setoff

provided in Section 12.1 in respect of its participating interest in

amounts owing under the Loan Documents to the same extent as if the amount of

its participating interest were owing directly to it as a Lender under the Loan

Documents, provided that each Lender shall retain the right of setoff

provided in Section 12.1 with respect to the amount of participating

interests sold to each Participant.  The

Lenders agree to share with each Participant, and each Participant, by

exercising the right of setoff provided in Section 12.1, agrees to share

with each Lender, any amount received pursuant to the exercise of its right of

 

86

 

setoff, such amounts to

be shared in accordance with Section 12.2 as if each Participant were a

Lender.  The Borrower further agrees

that each Participant shall be entitled to the benefits of Article IV to

the same extent as if it were a Lender and had acquired its interest by

assignment pursuant to Section 13.3, provided that (i) a

Participant shall not be entitled to receive any greater payment under Article

IV than the Lender who sold the participating interest to such Participant

would have received had it retained such interest for its own account, unless

the sale of such interest to such Participant is made with the prior written

consent of the Borrower, and (ii) any Participant not incorporated under the

laws of the United States of America or any State thereof agrees to comply with

the provisions of Article IV to the same extent as if it were a Lender.

 

13.3                           Assignments.

 

(A)                              Permitted

Assignments.  Any Lender may at

any time assign to one or more banks or other entities (“Purchasers”)

all or any part of its rights and obligations under the Loan Documents.  Such assignment shall be evidenced by an

agreement substantially in the form of Exhibit D or in such other form

as may be agreed to by the parties thereto (each such agreement, an “Assignment

Agreement”).  Each such assignment

with respect to a Purchaser which is not a Lender or an Affiliate of a Lender

or an Approved Fund shall, unless otherwise consented to in writing by the

Borrower and the Administrative Agent, either be in an amount equal to the

entire applicable Revolving Credit Obligations or Term Loans of the assigning

Lender or (unless each of the Borrower and the Administrative Agent otherwise

consents) be in an aggregate amount not less than $5,000,000.  The amount of the assignment shall be based

on the Revolving Credit Obligations or Term Loans subject to the assignment,

determined as of the date of such assignment or as of the “Trade Date,” if the

‘Trade Date” is specified in the Assignment Agreement.

 

(B)                                Consents.  The consent of the Borrower shall be

required prior to an assignment becoming effective unless the Purchaser is a

Lender, an Affiliate of a Lender or an Approved Fund, provided that the consent

of the Borrower shall not be required if a Default has occurred and is

continuing.  The consent of the

Administrative Agent shall be required prior to an assignment becoming

effective unless the Purchaser is a Lender, an Affiliate of a Lender or an Approved

Fund.  Any consent required under this Section

13.3(B) shall not be unreasonably withheld or delayed.

 

(C)                                Effect;

Effective Date.  Upon (i) delivery

to the Administrative Agent of an Assignment Agreement, together with any

consents required by Sections 13.3(A) and 13.3(B), and (ii) payment

of a $3,500 fee to the Administrative Agent for processing such assignment

(unless such fee is waived by the Administrative Agent or unless such

assignment is made to such assigning Lender’s Affiliate), such assignment shall

become effective on the effective date specified in such assignment.  The Assignment Agreement shall contain a

representation and warranty by the Purchaser to the effect that none of the

funds, money, assets or other consideration used to make the purchase and

assumption of the Revolving Loan Commitment, Term Loan Commitment and Revolving

Credit Obligations or Term Loans under the applicable Assignment Agreement

constitutes “plan assets” as defined under ERISA and that the rights, benefits

and interests of the Purchaser in and under the Loan Documents will not be

“plan assets” under ERISA.  On and after

the effective date of such assignment, such Purchaser shall for all purposes be

a Lender party to this Agreement and any other Loan Document executed by or on

 

87

 

behalf of the Lenders and

shall have all the rights, benefits and obligations of a Lender under the Loan

Documents, to the same extent as if it were an original party thereto, and the

transferor Lender shall be released with respect to the Revolving Credit

Obligations or Term Loans assigned to such Purchaser without any further

consent or action by the Borrower, the Lenders or the Administrative

Agent.  In the case of an assignment

covering all of the assigning Lender’s rights, benefits and obligations under

this Agreement, such Lender shall cease to be a Lender hereunder but shall

continue to be entitled to the benefits of, and subject to, those provisions of

this Agreement and the other Loan Documents which survive payment of the

Obligations and termination of the Loan Documents.  Any assignment or transfer by a Lender of rights or obligations

under this Agreement that does not comply with this Section 13.3 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 13.2.  Upon the consummation of any assignment to a

Purchaser pursuant to this Section 13.3(C), the transferor Lender, the

Administrative Agent and the Borrower shall, at no additional cost to the

Borrower, and, if the transferor Lender or the Purchaser desires that its Loans

be evidenced by promissory notes, make appropriate arrangements so that, upon

cancellation and surrender to the Borrower of the previously issued promissory

notes (if any) held by the transferor Lender, new promissory notes issued

hereunder or, as appropriate, replacement promissory notes are issued to such

transferor Lender, if applicable, and new promissory notes or, as appropriate,

replacement promissory notes, are issued to such Purchaser, in each case in

principal amounts reflecting their respective Revolving Loan Commitments or

Term Loan Commitments (or, if the Revolving Loan Termination Date or Term Loan

Termination Date has occurred, their respective Revolving Credit Obligations or

Term Loan Credit Obligations), as adjusted pursuant to such assignment.

 

(D)                               The

Register.  The Administrative Agent,

acting solely for this purpose as an Administrative Agent of the Borrower (and

the Borrower hereby designates the Administrative Agent to act in such

capacity), shall maintain at one of its offices in Chicago, Illinois a copy of

each Assignment and Assumption delivered to it and a register (the “Register”)

for the recordation of the names and addresses of the Lenders, and the

Revolving Loan Commitments of, and principal amounts of and interest on the

Loans owing to, each Lender pursuant to the terms hereof from time to time and

whether such Lender is an original Lender or assignee of another Lender

pursuant to an assignment under this Section 13.3.  The entries in the Register shall be

conclusive, and the Borrower, the Administrative Agent and the Lenders

may treat each Person whose name is recorded in the Register pursuant to

the terms hereof as a Lender hereunder for all purposes of this Agreement,

notwithstanding notice to the contrary. 

The Register shall be available for inspection by the Borrower and any

Lender, at any reasonable time and from time to time upon reasonable prior

notice.

 

13.4                           Dissemination of Information.  The Borrower authorizes each Lender to

disclose to any Participant or Purchaser or any other Person acquiring an

interest in the Loan Documents by operation of law (each a “Transferee”)

and any prospective Transferee any and all information in such Lender’s

possession concerning the creditworthiness of the Borrower and its

Subsidiaries; provided, that each Transferee and prospective Transferee

agrees to be bound by Section 10.9 of this Agreement.

 

13.5                           Tax Certifications.  If any interest in any Loan Document is transferred to any

Transferee which is not incorporated under the laws of the United States or any

State

 

88

 

thereof, the transferor

Lender shall cause such Transferee, concurrently with the effectiveness of such

transfer, to comply with the provisions of Article IV.

 

ARTICLE XIV:  NOTICES

 

14.1                           Giving Notice. 

Except as otherwise permitted by Section 2.13 with respect to

Borrowing/Election Notices, all notices and other communications provided to

any party hereto under this Agreement or any other Loan Documents shall be in

writing or by telex or by facsimile and addressed or delivered to such party at

its address set forth below its signature hereto or at such other address as

may be designated by such party in a notice to the other parties. Any

notice, if mailed and properly addressed with postage prepaid, shall be deemed

given when received; any notice, if transmitted by telex or facsimile, shall be

deemed given when transmitted (answer back confirmed in the case of telexes).

 

14.2                           Change of Address.  Each of the Borrower and the Administrative Agent may change

the address for service of notice upon it by a notice in writing to the other

parties hereto, including, without limitation, each Lender.  Each Lender may change the address for

service of notice upon it by a notice in writing to the Borrower and the

Administrative Agent.

 

ARTICLE XV:  COUNTERPARTS

 

This Agreement

may be executed in any number of counterparts, all of which taken together

shall constitute one agreement, and any of the parties hereto may execute

this Agreement by signing any such counterpart.  This Agreement shall be effective when it has been executed by

the Borrower, the Administrative Agent and the Lenders and each party has

notified the Administrative Agent by telex or telephone, that it has taken such

action.

 

The remainder of

this page is intentionally blank.

 

89

 

IN WITNESS WHEREOF, the

Borrower, the Lenders and the Administrative Agent have executed this Agreement

as of the date first above written.

 

	

   

  	

  QUIXOTE CORPORATION,

  as the Borrower

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Daniel P. Gorey

  	

   

  
	

   

  	

  Name:

  	

  Daniel P. Gorey

  	

   

  
	

   

  	

  Title:

  	

  Vice President, Chief Financial Officer &

  Treasurer

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Address:

  	

  Quixote Corporation

  One East Wacker Drive

  Chicago, Illinois 60601

  
	

   

  	

  Attention:

  	

  President

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Telephone No.: 

  	

   (312)

  467-6755

  	

   

  
	

   

  	

  Facsimile No.:

  	

  (312) 467-0197

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  THE NORTHERN TRUST COMPANY,

  as Administrative Agent, as an Issuing Bank

  and as a Lender

  
	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Erin G. Sullivan

  	

   

  
	

   

  	

  Name:

  	

  Erin G. Sullivan

  	

   

  
	

   

  	

  Title:

  	

  Second Vice President

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Address:

  	

  The Northern Trust Company

  50 South LaSalle Street

  Chicago, Illinois 60675

  	

   

  
	

   

  	

  Attention:

  	

  Erin G. Sullivan

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Telephone No.: 

  	

   (312)

  557-7340

  	

   

  
	

   

  	

  Facsimile No.:

  	

  (312) 444-7028

  	

   

  

 

90

 

	

   

  	

  LaSALLE BANK NATIONAL ASSOCIATION

  
	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Stephanie Kline

  	

   

  
	

   

  	

  Name:

  	

  Stephanie Kline

  	

   

  
	

   

  	

  Title:

  	

  Vice President

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Address:

  	

  LaSalle Bank National Association

  135 South LaSalle Street

  Chicago, Illinois 60603

  	

   

  
	

   

  	

  Attention:

  	

  Stephanie Kline

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Telephone No.: 

  

  	

  (312) 904-2771

  	

   

  
	

   

  	

  Facsimile No.:

  	

  (312) 904-6546

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  HARRIS TRUST AND SAVINGS BANK

  
	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Mark W. Piekos

  	

   

  
	

   

  	

  Name:

  	

  Mark W. Piekos

  	

   

  
	

   

  	

  Title:

  	

  Vice President

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Address:

  	

  Harris Trust and Savings Bank

  111 West Monroe Street

  Tenth Floor West

  Chicago, Illinois 60603

  	

   

  
	

   

  	

  Attention:

  	

  Mark W. Piekos

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Telephone No.: 

  	

  (312) 461-2246

  	

   

  
	

   

  	

  Facsimile No.:

  	

  (312) 293-4856

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  NATIONAL CITY BANK OF MICHIGAN/ILLINOIS

  
	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Richard H. Ault

  	

   

  
	

   

  	

  Name:

  	

  Richard H. Ault

  	

   

  
	

   

  	

  Title:

  	

  Vice President

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Address:

  	

  National City Bank of Michigan/Illinois

  One North Franklin

  Suite 3600

  Locator C-L01-C1

  Chicago, Illinois 60606

  	

   

  
	

   

  	

  Attention:

  	

  Richard H. Ault

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Telephone No.: 

  

  	

  (312) 384-4651

  	

   

  
	

   

  	

  Facsimile No.:

  	

  (312) 384-4666

  	

   

  

 

91

 

Exhibit

10.13

 

SUBSIDIARY

GUARANTY

 

GUARANTY, dated as

of May 16, 2003 (as amended, modified, restated and/or supplemented from

time to time, this “Guaranty”), made by each of the undersigned

Subsidiary Guarantors (each, a “Subsidiary Guarantor” and, together with

any other entity that becomes a Subsidiary Guarantor hereunder pursuant to Section

21 hereof, the “Subsidiary Guarantors”).  Except as otherwise defined herein, capitalized terms used herein

and defined in the Credit Agreement (as defined below) shall be used herein as

therein defined.

 

W

I  T  N  E  S  S  E  T  H:

 

WHEREAS, Quixote

Corporation (the “Borrower”), the lenders from time to time party

thereto (the “Lenders”), The Northern Trust Corporation, as

Administrative Agent (the “Agent”) and Lender, and LaSalle Bank National

Association, as Co-Agent, have entered into a Credit Agreement, dated as of

May 16, 2003 (as amended, modified, restated and/or supplemented from time

to time, the “Credit Agreement”), providing for the making of Loans to,

and the issuance of, and participation in, Letters of Credit for the account

of, the Borrower, all as contemplated therein (the Lenders, each Issuing

Lender, the Agent, the Co-Agent, each other agent, herein collectively called

the “Lenders”);

 

WHEREAS, each

Subsidiary Guarantor is a direct or indirect Subsidiary of the Borrower;

 

WHEREAS, it is a

condition precedent to the making of Loans to, and the issuance of, and

participation in, Letters of Credit for the account of the Borrower under the

Credit Agreement that each Subsidiary Guarantor shall have executed and

delivered this Guaranty; and

 

WHEREAS, each

Subsidiary Guarantor will obtain benefits from the incurrence of Loans by, and

the issuance of, and participation in, Letters of Credit for the account of,

the Borrower under the Credit Agreement and, accordingly, desires to execute

this Guaranty in order to satisfy the condition described in the preceding

paragraph and to induce the Lenders to make Loans to the Borrower and issue,

and/or participate in, Letters of Credit for the account of the Borrower;

 

NOW, THEREFORE, in

consideration of the foregoing and other benefits accruing to each Subsidiary

Guarantor, the receipt and sufficiency of which are hereby acknowledged, each

Subsidiary Guarantor hereby makes the following representations and warranties

to the Agent and Lenders and hereby covenants and agrees with the Agent and

each Lender as follows:

 

1.                                       Each

Subsidiary Guarantor, jointly and severally, irrevocably, absolutely and

unconditionally guarantees: (i) to the Agent, for the benefit of the Lenders,

the full and

 

 

prompt payment when due (whether at the stated

maturity, by acceleration or otherwise) of (x) the principal of, premium, if

any, and interest on the Notes issued by, and the Loans made to, the Borrower

under the Credit Agreement, and all reimbursement obligations and unpaid

drawings with respect to Letters of Credit and (y) all other obligations

(including obligations which, but for the automatic stay under Section 362(a)

of the Bankruptcy Code or other applicable bankruptcy or insolvency laws, would

become due), liabilities and indebtedness owing by the Borrower to the Lenders

under the Credit Agreement and each other Loan Document to which the Borrower

is a party (including, without limitation, indemnities, fees and interest

thereon (including, in each case, any interest accruing after the commencement

of any bankruptcy, insolvency, receivership or similar proceeding at the rate

provided for in the Credit Agreement, whether or not such interest is an

allowed claim in any such proceeding), whether now existing or hereafter

incurred under, arising out of or in connection with the Credit Agreement and

any such other Credit Document and the due performance and compliance by the

Borrower with all of the terms, conditions and agreements contained in all such

Loan Documents (all such principal, premium, interest, liabilities,

indebtedness and obligations being herein collectively called the “Guaranteed

Obligations”).  Each Subsidiary

Guarantor understands, agrees and confirms that the Agent, for the benefit of

the Lenders, may enforce this Guaranty up to the full amount of the

Guaranteed Obligations against such Subsidiary Guarantor without proceeding

against any other Subsidiary Guarantor, the Borrower, or under any other

guaranty covering all or a portion of the Guaranteed Obligations.  This Guaranty shall constitute a guaranty of

payment and not of collection.

 

2.                                       The

liability of each Subsidiary Guarantor hereunder is primary, absolute, joint

and several, and unconditional and is exclusive and independent of any security

for or other guaranty of the indebtedness of the Borrower whether executed by

such Subsidiary Guarantor, any other Subsidiary Guarantor or by any other

party, and the liability of each Subsidiary Guarantor hereunder shall not be

affected or impaired by any circumstance or occurrence whatsoever, including,

without limitation: (i) any direction as to application of payment by Borrower

or by any other party other than the Agent, (ii) any other continuing or other

guaranty, undertaking or maximum liability of a Subsidiary Guarantor or of any

other party as to the Guaranteed Obligations, (iii) any payment on or in

reduction of any such other guaranty or undertaking, (iv) any dissolution,

termination or increase, decrease or change in personnel by Borrower, (v) any

payment made to any Lender on the indebtedness which any Lender repays to the

Borrower pursuant to court order in any bankruptcy, reorganization,

arrangement, moratorium or other debtor relief proceeding, and each Subsidiary

Guarantor waives any right to the deferral or modification of its obligations

hereunder by reason of any such proceeding, (vi) any action or inaction by the

Agent or any Lender as contemplated in Section 5 hereof, (vii) any invalidity,

irregularity or unenforceability of all or any part of the Guaranteed

Obligations or of any security therefor or (viii) to the extent permitted by

applicable law, any other circumstances which might otherwise constitute a

defense available to, or a discharge of, the Borrower in respect of the Guaranteed

Obligations or of any Subsidiary Guarantor in respect of this Guaranty.

 

3.                                       The

obligations of each Subsidiary Guarantor hereunder are independent of the

obligations of any other Subsidiary Guarantor, any other Subsidiary Guarantor,

the Borrower and a separate action or actions may be brought and

prosecuted against each Subsidiary Guarantor whether or not action is brought

against any other Subsidiary Guarantor,

 

2

 

any other Subsidiary Guarantor, the Borrower and

whether or not any other Subsidiary Guarantor, any other Subsidiary Guarantor,

the Borrower be joined in any such action or actions.  Each Subsidiary Guarantor waives, to the fullest extent permitted

by law, the benefits of any statute of limitations affecting its liability

hereunder or the enforcement thereof. 

Any payment by the Borrower or other circumstance which operates to toll

any statute of limitations as to the Borrower shall operate to toll the statute

of limitations as to each Subsidiary Guarantor to the fullest extent permitted

by law.

 

4.                                       Each

Subsidiary Guarantor hereby waives to the fullest extent permitted by

applicable law, notice of acceptance of this Guaranty and notice of any

liability to which it may apply, and waives promptness, diligence,

presentment, demand of payment, protest, notice of dishonor or nonpayment of

any such liabilities, suit or taking of other action by the Agent or any other

Lender against, and any other notice to, any party liable thereon (including such

Subsidiary Guarantor and the Borrower).

 

5.                                       The

Agent, on behalf of the Lenders, or the Lenders may at any time and from

time to time without the consent of, or notice to, any Subsidiary Guarantor,

without incurring responsibility to such Subsidiary Guarantor, without

impairing or releasing the obligations of such Subsidiary Guarantor hereunder,

upon or without any terms or conditions and in whole or in part:

 

(i)                                     change

the manner, place or terms of payment of, and/or change or extend the time of

payment of, renew, increase, accelerate or alter, any of the Guaranteed

Obligations (including any increase or decrease in the rate of interest

thereon), any security therefor, or any liability incurred directly or

indirectly in respect thereof, and the guaranty herein made shall apply to the

Guaranteed Obligations as so changed, extended, renewed, increased or altered;

 

(ii)                                  take

and hold security for the payment of the Guaranteed Obligations and/or sell,

exchange, release, surrender, impair, realize upon or otherwise deal with in

any manner and in any order any property by whomsoever at any time pledged or

mortgaged to secure, or howsoever securing, the Guaranteed Obligations or any

liabilities (including any of those hereunder) incurred directly or indirectly in

respect thereof or hereof, and/or any offset thereagainst;

 

(iii)                               exercise

or refrain from exercising any rights against the Borrower or any Subsidiary

thereof or otherwise act or refrain from acting;

 

(iv)                              settle

or compromise any of the Guaranteed Obligations, any security therefor or any

liability (including any of those hereunder) incurred directly or indirectly in

respect thereof or hereof, and may subordinate the payment of all or any

part thereof to the payment of any liability (whether due or not) of the

Borrower to creditors of Borrower other than the Lenders;

 

3

 

(v)                                 apply

any sums by whomsoever paid or howsoever realized to any liability or

liabilities of the Borrower to the Lenders regardless of what liabilities of

the Borrower remain unpaid;

 

(vi)                              release

or substitute any one or more endorsers, other Subsidiary Guarantor, the

Borrower or other obligors;

 

(vii)                           consent

to or waive any breach of, or any act, omission or default under, any of the Loan

Documents or any of the instruments or agreements referred to therein, or

otherwise amend, modify or supplement any of the Loan Documents or any of such

other instruments or agreements;

 

(viii)                        act or

fail to act in any manner referred to in this Guaranty which may deprive

such Subsidiary Guarantor of its right to subrogation against the Borrower to

recover full indemnity for any payments made pursuant to this Guaranty; and/or

 

(ix)                                take

any other action which could, under otherwise applicable principles of common

law, give rise to a legal or equitable discharge of any Subsidiary Guarantor

from its liabilities under this Guaranty.

 

6.                                       No

invalidity, irregularity or unenforceability of all or any part of the

Guaranteed Obligations or of any security therefor shall affect, impair or be a

defense to this Guaranty, and this Guaranty shall be primary, absolute and

unconditional notwithstanding the occurrence of any event or the existence of

any other circumstances which might constitute a legal or equitable discharge

of a surety or Subsidiary Guarantor except payment in full of the Guaranteed

Obligations.

 

7.                                       This

Guaranty is a continuing one and all liabilities to which it applies or

may apply under the terms hereof shall be conclusively presumed to have

been created in reliance hereon.  No

failure or delay on the part of the Agent, on behalf of the Lenders, or any

Lender in exercising any right, power or privilege hereunder shall operate as a

waiver thereof; nor shall any single or partial exercise of any right, power or

privilege hereunder preclude any other or further exercise thereof or the

exercise of any other right, power or privilege.  The rights and remedies herein expressly specified are cumulative

and not exclusive of any rights or remedies which any Lender would otherwise

have.  No notice to or demand on any

Subsidiary Guarantor in any case shall entitle such Subsidiary Guarantor to any

other further notice or demand in similar or other circumstances or constitute

a waiver of the rights of any Lender to any other or further action in any

circumstances without notice or demand. 

It is not necessary for the Agent or any Lender to inquire into the

capacity or powers of the Borrower or the officers, directors, partners or

agents acting or purporting to act on its or their behalf, and any indebtedness

made or created in reliance upon the professed exercise of such powers shall be

guaranteed hereunder.

 

8.                                       (a)

Each Subsidiary Guarantor waives any right (except as shall be required by

applicable law and cannot be waived) to require the Agent or any Lender to: (i)

proceed against the Borrower, of the Guaranteed Obligations or any other party;

(ii) proceed

 

4

 

against or exhaust any security held from the Borrower

of the Guaranteed Obligations or any other party; or (iii) pursue any other

remedy in the Agent’s or any Lender’s power whatsoever.  Each Subsidiary Guarantor waives any defense

based on or arising out of any defense of the Borrower of the Guaranteed Obligations

or any other party other than payment in full of the Guaranteed Obligations,

including, without limitation, any defense based on or arising out of the

disability of the Borrower of the Guaranteed Obligations or any other party, or

the unenforceability of the Guaranteed Obligations or any part thereof from any

cause, or the cessation from any cause of the liability of the Borrower other

than payment in full of the Guaranteed Obligations in cash.

 

(b)                                 Each

Subsidiary Guarantor assumes all responsibility for being and keeping itself

informed of the Borrower’s financial condition and assets, and of all other

circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations

and the nature, scope and extent of the risks which such Subsidiary Guarantor

assumes and incurs hereunder, and agrees that the Agent or any Lender shall

have no duty to advise any Subsidiary Guarantor of information known to them

regarding such circumstances or risks.

 

(c)                                  Until

such time as the Guaranteed Obligations have been paid in full in cash, each

Subsidiary Guarantor hereby waives all contractual, statutory, common law or

other rights of reimbursement, contribution or indemnity from the Borrower,

which it may at any time otherwise have as a result of this Guaranty.

 

9.                                       In

order to induce the Lenders to make Loans to, and issue Letters of Credit for

the account of, the Borrower pursuant to the Credit Agreement, Subsidiary

Guarantor represents, warrants and covenants that:

 

(a)                                  such

Subsidiary Guarantor (i) is a duly organized and validly existing corporation,

partnership or limited liability company, as the case may be, in good

standing under the laws of the jurisdiction of its organization, (ii) has the

power and authority to own its property and assets and to transact the business

in which it is engaged and presently proposes to engage and (iii) is duly

qualified and is authorized to do business and is in good standing in all

jurisdictions where it is required to be so qualified except for failures to be

so qualified which, individually or in the aggregate, would not reasonably be

expected to have a Material Adverse Effect;

 

(b)                                 such

Subsidiary Guarantor has the power and authority to execute, deliver and

perform this Guaranty and each other Loan Document (such term, for purposes of

this Guaranty, to mean each Loan Document (as defined in the Credit Agreement)

to which it is a party) and has taken all necessary action to authorize the

execution, delivery and performance by it of each such Loan Document;

 

(c)                                  such

Subsidiary Guarantor has duly executed and delivered this Guaranty and each

other Loan Document to which it is a party, and each such Loan Document

constitutes the legal, valid and binding obligation of such Subsidiary

Guarantor enforceable against such Subsidiary Guarantor in accordance with its

terms,

 

5

 

except to the extent that

the enforceability hereof or thereof may be limited by applicable

bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or

other similar laws generally affecting creditors’ rights and by equitable

principles (regardless of whether enforcement is sought in equity or at law);

 

(d)                                 neither

the execution, delivery or performance by such Subsidiary Guarantor of this

Guaranty or any other Loan Document to which it is a party, nor compliance by

it with the terms and provisions hereof and thereof nor the consummation of the

transactions contemplated therein:  (i)

will contravene any material provision of any applicable law, statute, rule or

regulation, or any applicable order, writ, injunction or decree of any court or

governmental instrumentality applicable to the Subsidiary Guarantors, (ii) will

conflict or be inconsistent with or result in any breach of, any of the terms,

covenants, conditions or provisions of, or constitute a default under, or

result in the creation or imposition of (or the obligation to create or impose)

any Lien upon any of the material properties or assets of such Subsidiary

Guarantor or any of its Subsidiaries pursuant to the terms of any indenture,

mortgage, deed of trust, credit agreement or loan agreement or any other

material agreement, contract or other instrument to which such Subsidiary

Guarantor or any of its Subsidiaries is a party or by which it or any of its

material properties or assets is bound or to which it may be subject

except any conflict, inconsistency or breach which individually or in the

aggregate could not reasonably be expected to have a Material Adverse Effect or

(iii) will violate any provision of the certificate or articles of

incorporation, by-laws, certificate of partnership, partnership agreement,

certificate of formation or limited liability company agreement (or equivalent

organizational documents), as the case may be, of such Subsidiary

Guarantor or any of its Subsidiaries;

 

(e)                                  no

order, consent, approval, license, authorization or validation of, or filing,

recording or registration with (except as have been obtained or made prior to

the date when required and which remain in full force and effect), or exemption

by, any governmental or public body or authority, or any subdivision thereof,

is required with respect to such Subsidiary Guarantor to authorize, or is

required by such Subsidiary Guarantor in connection with, (i) the execution,

delivery and performance of this Guaranty or any other Loan Document to which

such Subsidiary Guarantor is a party, or (ii) the legality, validity, binding

effect or enforceability of this Guaranty or any other Loan Document to which

such Subsidiary Guarantor is a party; and

 

(f)                                    there

are no actions, suits or proceedings pending or, to the knowledge of such

Subsidiary Guarantor, threatened (i) with respect to this Guaranty or any other

Loan Document to which such Subsidiary Guarantor is a party, or (ii) which is,

or could reasonably be expected to have, a Material Adverse Effect.

 

10.                                 Each

Subsidiary Guarantor covenants and agrees that on and after the date hereof and

until the termination of the Credit Agreement, no Note or Letter of Credit remains

outstanding and all other Guaranteed Obligations have been paid in full, such

Subsidiary Guarantor shall use all reasonable efforts to take, or will use all

reasonable efforts in the exercise of its business judgment to refrain from

taking, as the case may be, all actions that are necessary

 

6

 

to be taken or not taken so that no violation of any

provision, covenant or agreement contained in Section VII of the Credit

Agreement, and so that no Event of Default, is caused by the actions of such

Subsidiary Guarantor or any of its Subsidiaries.

 

11.                                 The

Subsidiary Guarantors hereby jointly and severally agree to pay all

out-of-pocket costs and expenses of the Agent and each Lender in connection

with the enforcement of this Guaranty and the protection of such Agent or any

Lender’s rights hereunder, and in connection with any amendment, waiver or

consent relating hereto (including, without limitation, the reasonable fees and

disbursements of counsel employed by the Agents or any of the Lenders).

 

12.                                 This

Guaranty shall be binding upon each Subsidiary Guarantor and its successors and

assigns and shall inure to the benefit of the Agent and each Lender and their

successors and assigns.

 

13.                                 Neither

this Guaranty nor any provision hereof may be changed, waived, discharged

or terminated in any manner whatsoever unless in writing duly signed by the

Agent (with the consent of the Required Lenders (or, to the extent required by

Section 9.3 of the Credit Agreement, all of the Lenders) at all times prior to

the time at which all Guaranteed Obligations have been paid in full, and each

Subsidiary Guarantor directly affected thereby (it being understood that the

addition or release of any Subsidiary Guarantor hereunder shall not constitute

a change, waiver, discharge or termination affecting any Subsidiary Guarantor

other than the Subsidiary Guarantors so added or released).

 

14.                                 Each

Subsidiary Guarantor acknowledges that an executed (or conformed) copy of each

of the Loan Documents has been made available to its principal executive

officers and such officers are satisfied with the contents thereof.

 

15.                                 In

addition to any rights now or hereafter granted under applicable law and not by

way of limitation of any such rights, upon the occurrence and during the

continuance of an Default (such term to mean and include any “Unmatured

Default” as defined in the Credit Agreement and shall in any event,

include, without limitation, any payment default on any of the Guaranteed

Obligations continuing after any applicable grace period), the Agent and each

Lender is hereby authorized at any time or from time to time, without notice to

any Subsidiary Guarantor or to any other Person, any such notice being

expressly waived, to set off and to appropriate and apply any and all deposits

(general or special) and any other indebtedness at any time held or owing by

such Lender to or for the credit or the account of such Subsidiary Guarantor,

against and on account of the obligations and liabilities of such Subsidiary

Guarantor to such Agent or Lender under this Guaranty, irrespective of whether

or not such Agent or Lender shall have made any demand hereunder and although

said obligations, liabilities, deposits or claims, or any of them, shall be contingent

or unmatured.

 

16.                                 All

notices, requests, demands or other communications pursuant hereto shall be

sent or delivered by mail, telegraph, telex, telecopy, cable or courier service

and all such notices and communications shall, when mailed, telegraphed,

telexed, telecopied, or cabled or sent by overnight courier, be effective when

deposited in the mails, delivered to the telegraph

 

7

 

company, cable company or overnight courier, as the

case may be, or sent by telex or telecopier, except that notices and

communications to the Agent or any Subsidiary Guarantor shall not be effective

until received by the Agent or such Subsidiary Guarantor, as the case

may be.  All notices and other

communications shall be in writing and addressed to such party at (i) in the

case of the Agent or any Lender, as provided in the Credit Agreement, and (ii)

in the case of any Subsidiary Guarantor, at its address or facsimile number set

forth opposite its signature below or in any case at such other address or

telefax number as any of the Persons listed above may hereafter notify the

others in writing.

 

17.                                 If

claim is ever made upon any Agent or Lender for repayment or recovery of any

amount or amounts received in payment or on account of any of the Guaranteed

Obligations and any of the aforesaid payees repays all or part of said amount

by reason of (i) any judgment, decree or order of any court or administrative

body having jurisdiction over such Agent or Lender or any of its property or

(ii) any settlement or compromise of any such claim effected by such Lender

with any such claimant (including the Borrower), then and in such event each

Subsidiary Guarantor agrees that any such judgment, decree, order, settlement

or compromise shall be binding upon such Subsidiary Guarantor, notwithstanding

any revocation hereof or the cancellation of any Note or other instrument

evidencing any liability of any Borrower, and such Subsidiary Guarantor shall

be and remain liable to such Agent and Lender hereunder for the amount so

repaid or recovered to the same extent as if such amount had never originally

been received by any such Agent and Lender.

 

18.                                 (a)

THIS GUARANTY AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE

CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF

ILLINOIS, IN EACH CASE WHICH ARE LOCATED IN THE COUNTY OF COOK.  ANY LEGAL ACTION OR PROCEEDING WITH RESPECT

TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT MAY BE BROUGHT IN THE

COURTS OF THE STATE OF ILLINOIS OR OF THE UNITED STATES FOR THE NORTHERN

DISTRICT OF ILLINOIS, IN EACH CASE WHICH ARE LOCATED IN THE COUNTY OF COOK AND,

BY EXECUTION AND DELIVERY OF THIS GUARANTY, EACH SUBSIDIARY GUARANTOR HEREBY

IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND

UNCONDITIONALLY, THE JURISDICTION OF THE AFOREMENTIONED COURTS.  EACH SUBSIDIARY GUARANTOR HEREBY IRREVOCABLY

DESIGNATES, APPOINTS AND EMPOWERS THE BORROWER AS ITS DESIGNEE, APPOINTEE AND

AGENT TO RECEIVE, ACCEPT AND ACKNOWLEDGE FOR AND ON ITS BEHALF, AND IN RESPECT

OF THE PROPERTY OF EACH SUBSIDIARY GUARANTOR, SERVICE OF ANY AND ALL LEGAL

PROCESS, SUMMONS, NOTICES AND DOCUMENTS WHICH MAY BE SERVED IN ANY SUCH

ACTION OR PROCEEDING, AND THE BORROWER HEREBY ACCEPTS SUCH DESIGNATION,

APPOINTMENT AND EMPOWERMENT FOR ITSELF AND EACH SUBSIDIARY GUARANTOR.  EACH SUBSIDIARY GUARANTOR HEREBY FURTHER

IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH COURTS LACK PERSONAL

 

8

 

JURISDICTION OVER SUCH SUBSIDIARY GUARANTOR, AND

AGREES NOT TO PLEAD OR CLAIM IN ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO

THIS GUARANTY OR ANY OTHER CREDIT DOCUMENT BROUGHT IN ANY OF THE AFOREMENTIONED

COURTS THAT SUCH COURTS LACK PERSONAL JURISDICTION OVER SUCH SUBSIDIARY GUARANTOR.  EACH SUBSIDIARY GUARANTOR FURTHER

IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED

COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY

REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO ANY SUCH SUBSIDIARY GUARANTOR

AT ITS ADDRESS FOR NOTICES AS PROVIDED IN SECTION 18 ABOVE, SUCH SERVICE TO

BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING. 

EACH SUBSIDIARY GUARANTOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION TO

SUCH SERVICE OF PROCESS AND FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD

OR CLAIM IN ANY ACTION OR PROCEEDING COMMENCED HEREUNDER OR UNDER ANY OTHER

CREDIT DOCUMENT THAT SUCH SERVICE OF PROCESS WAS IN ANY WAY INVALID OR

INEFFECTIVE IF IN CONFORMITY WITH THE FOREGOING.  NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE AGENT UNDER THIS

GUARANTY, OR ANY LENDER, TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW

OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY SUBSIDIARY

GUARANTOR IN ANY OTHER JURISDICTION.

 

(b)                                 EACH

SUBSIDIARY GUARANTOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT

MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF THE

AFOREMENTIONED ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS

GUARANTY OR ANY OTHER CREDIT DOCUMENT BROUGHT IN THE COURTS REFERRED TO IN

CLAUSE (a) ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD

OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY

SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

(c)                                  EACH

OF THE PARTIES TO THIS GUARANTY HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL

BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO

THIS GUARANTY, THE OTHER LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY

OR THEREBY.

 

19.                                 All

payments made by any Subsidiary Guarantor hereunder will be made without

setoff, counterclaim or other defense and on the same basis as payments are

made by the Borrower under Section 2 of the Credit Agreement.

 

20.                                 This

Guaranty may be executed in any number of counterparts and by the

different parties hereto on separate counterparts, each of which when so

executed and delivered shall be an original, but all of which shall together

constitute one and the same instrument. 

A set of counterparts executed by all the parties hereto shall be lodged

with the Agent.

 

21.                                 It

is understood and agreed that any Subsidiary that is required to execute a

counterpart of this Guaranty after the date hereof pursuant to the terms of the

Credit Agreement shall become a Subsidiary Guarantor hereunder by executing a

counterpart hereof and delivering the same to the Agent.

 

9

 

22.                                 Notwithstanding

anything else to the contrary in this Guaranty, Agent, on behalf of the

Lenders, agrees that this Guaranty may be enforced only by the action of

the Agent acting upon the instructions of the Required Lenders (or, after the

date on which all Guaranteed Obligations have been paid in full) and that no

other Lender shall have any right individually to seek to enforce or to enforce

this Guaranty, it being understood and agreed that such rights and remedies

may be exercised by the Agent, for the benefit of the Lenders upon the

terms of this Guaranty and the Loan Documents. 

The Agent on behalf of the Lenders further agrees that this Guaranty

may not be enforced against any director, manager, member, trustee,

officer, employee, partner, stockholder or other holder of equity interests of

any Subsidiary Guarantor (except to the extent such holder of equity interests

is also a Subsidiary Guarantor hereunder). 

It is understood that the agreement in this Section 22 is among and

solely for the benefit of the Lenders and that if the Required Lenders so

direct (without requiring the consent of any Subsidiary Guarantor), this

Guaranty may be directly enforced by any Lender.

 

23.                                 This

Guaranty and any obligations of any Guaranty hereunder shall terminate on the

termination of the Revolving Loan Commitment and Term Loan Commitment and

payment in full of all Guaranteed Obligations; provided that all

indemnities set forth herein shall survive any such termination.

 

*     *    

*

 

10

 

IN WITNESS WHEREOF, each

Subsidiary Guarantor has caused this Guaranty to be executed and delivered as

of the date first above written.

 

	

   

  	

  QUIXOTE TRANSPORTATION SAFETY, INC

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Leslie J.

  Jezuit

  	

   

  
	

   

  	

  Name:

  	

  Leslie J. Jezuit

  	

   

  
	

   

  	

  Title:

  	

  President, Chief Executive Officer & Chairman

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Address:

  	

  c/o Quixote Corporation

  One East Wacker Drive

  Chicago, Illinois 60601

  
	

   

  	

  Telephone No.:

  	

  (312) 467-6755

  
	

   

  	

  Facsimile No.:

  	

  (312) 467-0197

  
	

   

  	

  Attention:

  	

  President

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  TRANSAFE CORPORATION

  
	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Leslie J.

  Jezuit

  	

   

  
	

   

  	

  Name:

  	

  Leslie J. Jezuit

  
	

   

  	

  Title:

  	

  President, Chief Executive Officer & Chairman

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Address:

  	

  c/o Quixote Corporation

  One East Wacker Drive

  Chicago, Illinois 60601

  
	

   

  	

  Telephone No.:

  	

  (312) 467-6755

  
	

   

  	

  Facsimile No.:

  	

  (312) 467-0197

  
	

   

  	

  Attention:

  	

  President

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  ENERGY ABSORPTION

  SYSTEMS, INC.

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Leslie J.

  Jezuit

  	

   

  
	

   

  	

  Name:

  	

  Leslie J. Jezuit

  
	

   

  	

  Title:

  	

  President, Chief Executive Officer & Chairman

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Address:

  	

  c/o Quixote Corporation

  One East Wacker Drive

  Chicago, Illinois 60601

  
	

   

  	

  Telephone No.:

  	

  (312) 467-6755

  
	

   

  	

  Facsimile No.:

  	

  (312) 467-0197

  
	

   

  	

  Attention:

  	

  President

  
									

 

11

 

	

   

  	

  ENERGY ABSORPTION SYSTEMS (AL) LLC

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  By: Energy Absorption Systems, Inc., Its sole Managing Member

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Leslie J.

  Jezuit

  	

   

  
	

   

  	

  Name:

  	

  Leslie J. Jezuit

  
	

   

  	

  Title:

  	

  President, Chief Executive Officer & Chairman

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Address:

  	

  c/o Quixote Corporation

  One East Wacker Drive

  Chicago, Illinois 60601

  
	

   

  	

  Telephone No.:

  	

  (312) 467-6755

  
	

   

  	

  Facsimile No.:

  	

  (312) 467-0197

  
	

   

  	

  Attention:

  	

  President

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  SURFACE SYSTEMS,INC.

  
	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Leslie J.

  Jezuit

  	

   

  
	

   

  	

  Name:

  	

  Leslie J. Jezuit

  
	

   

  	

  Title:

  	

  President, Chief Executive Officer & Chairman

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Address:

  	

  c/o Quixote Corporation

  One East Wacker Drive

  Chicago, Illinois 60601

  
	

   

  	

  Telephone No.:

  	

  (312) 467-6755

  
	

   

  	

  Facsimile No.:

  	

  (312) 467-0197

  
	

   

  	

  Attention:

  	

  President

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  NU-METRICS, INC.

  
	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Leslie J.

  Jezuit

  	

   

  
	

   

  	

  Name:

  	

  Leslie J. Jezuit

  
	

   

  	

  Title:

  	

  President, Chief Executive Officer & Chairman

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Address:

  	

  c/o Quixote Corporation

  One East Wacker Drive

  Chicago, Illinois 60601

  
	

   

  	

  Telephone No.:

  	

  (312) 467-6755

  
	

   

  	

  Facsimile No.:

  	

  (312) 467-0197

  
	

   

  	

  Attention:

  	

  President

  
								

 

12

 

	

   

  	

  HIGHWAY INFORMATION

  SYSTEMS, INC.

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Leslie J.

  Jezuit

  	

   

  
	

   

  	

  Name:

  	

  Leslie J. Jezuit

  
	

   

  	

  Title:

  	

  President, Chief Executive Officer & Chairman

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Address:

  	

  c/o Quixote Corporation

  One East Wacker Drive

  Chicago, Illinois 60601

  
	

   

  	

  Telephone No.:

  	

  (312) 467-6755

  
	

   

  	

  Facsimile No.:

  	

  (312) 467-0197

  
	

   

  	

  Attention:

  	

  President

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  GREEN LIGHT ACQUISITION

  CORPORATION

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Leslie J.

  Jezuit

  	

   

  
	

   

  	

  Name:

  	

  Leslie J. Jezuit

  
	

   

  	

  Title:

  	

  President, Chief Executive Officer & Chairman

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Address:

  	

  c/o Quixote Corporation

  One East Wacker Drive

  Chicago, Illinois 60601

  
	

   

  	

  Telephone No.:

  	

  (312) 467-6755

  
	

   

  	

  Facsimile No.:

  	

  (312) 467-0197

  
	

   

  	

  Attention:

  	

  President

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Accepted and Agreed to:

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  THE NORTHERN TRUST

  CORPORATION,

  as Administrative Agent for the Lenders

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  By:

  	

  /s/ Erin G. Sullivan

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Name:

  	

  Erin G. Sullivan

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Title:

  	

  Second Vice President

  	

   

  	

   

  	

   

  	

   

  	

   

  
											

 

13

 

Exhibit

10.13

 

REVOLVING LOAN NOTE

 

	

  $10,714,285.71

  	

   

  	

  Chicago,

  Illinois

  May 21, 2003

  

 

FOR VALUE RECEIVED, the

undersigned, QUIXOTE CORPORATION, a Delaware corporation (the “Borrower”),

promises to pay to the order of HARRIS TRUST AND SAVINGS BANK and its

registered assigns (the “Lender”), on May16, 2006, the principal sum of Ten

Million Seven Hundred Fourteen Thousand Two Hundred Eighty Five Dollars and

71/100 ($10,714,285.71), or, if less, the aggregate unpaid principal amount of

all Loans made by the Lender to the Borrower from time to time pursuant to that

certain Credit Agreement, dated as of May 16, 2003 (together with all

amendments, if any, from time to time made thereto, the “Credit Agreement”),

among the Borrower, various lenders (including the Lender), and The Northern

Trust Company, as agent (the “Agent”).

 

The Borrower agrees to

pay interest on the principal hereof remaining from time to time unpaid in

accordance with Section 2.14 of the Credit Agreement.

 

All payments of principal

of and interest on this Note shall be payable in lawful currency of the United

States of America at the Agent’s office at 50 South LaSalle Street, Chicago,

Illinois 60675, in immediately available funds.

 

This Note evidences

indebtedness incurred under, and is subject to the terms and provisions of, the

Credit Agreement, to which reference is made for a statement of those terms and

provisions.  Should the indebtedness

represented by this Note or any part hereof be collected at law or in equity or

in bankruptcy, receivership, or other court proceedings, or this Note be placed

in the hands of attorneys for collection after maturity (by declaration or

otherwise), the undersigned agrees to pay, in addition to principal and

interest due and payable hereon, reasonable attorneys’ and collection fees.

 

	

   

  	

  QUIXOTE CORPORATION

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Leslie J. Jezuit

  	

   

  
	

   

  	

  Name:

  	

    Leslie J. Jezuit

  
	

   

  	

  Title:

  	

    President, Chief Executive
  Officer and Chairman

  
					

 

 

Loans made by HARRIS

TRUST AND SAVINGS BANK (the “Lender”) to QUIXOTE CORPORATION (the “Borrower”)

under the Credit Agreement, dated as of May 16, 2003 among the Borrower,

various lenders (including the Lender), and THE NORTHERN TRUST COMPANY, as

Agent, and payments of principal received on the Note to which this Grid is

attached:

 

	

  Date

  	

   

  	

  Amount

  of Loan

  	

   

  	

  Amount of

  Principal

  Paid

  	

   

  	

  Unpaid

  Principal

  Balance

  	

   

  	

  Notation

  By

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  

 

2

 

Exhibit

10.13

 

REVOLVING LOAN NOTE

 

	

  $14,285,714.29

  	

   

  	

  Chicago,

  Illinois

  May 21, 2003

  

 

FOR VALUE RECEIVED, the

undersigned, QUIXOTE CORPORATION, a Delaware corporation (the “Borrower”),

promises to pay to the order of LaSALLE BANK NATIONAL ASSOCIATION and its

registered assigns (the “Lender”), on May 16, 2006, the principal sum of

Fourteen Million Two Hundred Eighty Five Thousand Seven Hundred Fourteen Dollars

and 29/100 ($14,285,714.29), or, if less, the aggregate unpaid principal amount

of all Loans made by the Lender to the Borrower from time to time pursuant to

that certain Credit Agreement, dated as of May 16, 2003 (together with all

amendments, if any, from time to time made thereto, the “Credit Agreement”),

among the Borrower, various lenders (including the Lender), and The Northern

Trust Company, as agent (the “Agent”).

 

The Borrower agrees to

pay interest on the principal hereof remaining from time to time unpaid in

accordance with Section 2.14 of the Credit Agreement.

 

All payments of principal

of and interest on this Note shall be payable in lawful currency of the United

States of America at the Agent’s office at 50 South LaSalle Street, Chicago, Illinois

60675, in immediately available funds.

 

This Note evidences

indebtedness incurred under, and is subject to the terms and provisions of, the

Credit Agreement, to which reference is made for a statement of those terms and

provisions.  Should the indebtedness

represented by this Note or any part hereof be collected at law or in equity or

in bankruptcy, receivership, or other court proceedings, or this Note be placed

in the hands of attorneys for collection after maturity (by declaration or

otherwise), the undersigned agrees to pay, in addition to principal and

interest due and payable hereon, reasonable attorneys’ and collection fees.

 

 

	

   

  	

  QUIXOTE CORPORATION

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Leslie J. Jezuit

  	

   

  
	

   

  	

  Name:

  	

  Leslie J. Jezuit

  
	

   

  	

  Title:

  	

  President, Chief

  Executive

  Officer and Chairman

  
					

 

 

Loans made by LASALLE

BANK NATIONAL ASSOCIATION (the “Lender”) to QUIXOTE CORPORATION (the

“Borrower”) under the Credit Agreement, dated as of May 16, 2003 among the

Borrower, various lenders (including the Lender), and THE NORTHERN TRUST

COMPANY, as Agent, and payments of principal received on the Note to which this

Grid is attached:

 

 

	

  Date

  	

   

  	

  Amount

  of Loan

  	

   

  	

  Amount of

  Principal

  Paid

  	

   

  	

  Unpaid

  Principal

  Balance

  	

   

  	

  Notation

  By

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  

 

2

 

Exhibit

10.13

 

REVOLVING LOAN NOTE

 

	

  $10,714,285.71

  	

   

  	

  Chicago,

  Illinois

  May 21, 2003

  

 

FOR VALUE RECEIVED, the

undersigned, QUIXOTE CORPORATION, a Delaware corporation (the “Borrower”),

promises to pay to the order of NATIONAL CITY BANK OF MICHIGAN/ILLINOIS and its

registered assigns (the “Lender”), on May16, 2006, the principal sum of Ten

Million Seven Hundred Fourteen Thousand Two Hundred Eighty Five Dollars and

71/100 ($10,714,285.71), or, if less, the aggregate unpaid principal amount of

all Loans made by the Lender to the Borrower from time to time pursuant to that

certain Credit Agreement, dated as of May 16, 2003 (together with all

amendments, if any, from time to time made thereto, the “Credit Agreement”),

among the Borrower, various lenders (including the Lender), and The Northern

Trust Company, as agent (the “Agent”).

 

The Borrower agrees to

pay interest on the principal hereof remaining from time to time unpaid in

accordance with Section 2.14 of the Credit Agreement.

 

All payments of principal

of and interest on this Note shall be payable in lawful currency of the United

States of America at the Agent’s office at 50 South LaSalle Street, Chicago,

Illinois 60675, in immediately available funds.

 

This Note evidences

indebtedness incurred under, and is subject to the terms and provisions of, the

Credit Agreement, to which reference is made for a statement of those terms and

provisions.  Should the indebtedness

represented by this Note or any part hereof be collected at law or in equity or

in bankruptcy, receivership, or other court proceedings, or this Note be placed

in the hands of attorneys for collection after maturity (by declaration or otherwise),

the undersigned agrees to pay, in addition to principal and interest due and

payable hereon, reasonable attorneys’ and collection fees.

 

	

   

  	

  QUIXOTE CORPORATION

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Leslie J. Jezuit

  	

   

  
	

   

  	

  Name:

  	

  Leslie J. Jezuit

  
	

   

  	

  Title:

  	

  President, Chief

  Executive

  Officer and Chairman

  
					

 

 

Loans made by NATIONAL

CITY BANK OF MICHIGAN/ILLINOIS (the “Lender”) to QUIXOTE CORPORATION (the

“Borrower”) under the Credit Agreement, dated as of May 16, 2003 among the

Borrower, various lenders (including the Lender), and THE NORTHERN TRUST

COMPANY, as Agent, and payments of principal received on the Note to which this

Grid is attached:

 

	

  Date

  	

   

  	

  Amount

  of Loan

  	

   

  	

  Amount of

  Principal

  Paid

  	

   

  	

  Unpaid

  Principal

  Balance

  	

   

  	

  Notation

  By

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  

 

2

 

Exhibit

10.13

 

REVOLVING LOAN NOTE

 

	

  $14,285,714.29

  	

   

  	

  Chicago,

  Illinois

  May 21, 2003

  

 

FOR VALUE RECEIVED, the

undersigned, QUIXOTE CORPORATION, a Delaware corporation (the “Borrower”),

promises to pay to the order of THE NORTHERN TRUST COMPANY and its registered

assigns (the “Lender”), on May 16, 2006, the principal sum of Fourteen

Million Two Hundred Eighty Five Thousand Seven Hundred Fourteen Dollars and

29/100 ($14,285,714.29), or, if less, the aggregate unpaid principal amount of

all Loans made by the Lender to the Borrower from time to time pursuant to that

certain Credit Agreement, dated as of May 16, 2003 (together with all amendments,

if any, from time to time made thereto, the “Credit Agreement”), among the

Borrower, various lenders (including the Lender), and The Northern Trust

Company, as agent (the “Agent”).

 

The Borrower agrees to

pay interest on the principal hereof remaining from time to time unpaid in

accordance with Section 2.14 of the Credit Agreement.

 

All payments of principal

of and interest on this Note shall be payable in lawful currency of the United

States of America at the Agent’s office at 50 South LaSalle Street, Chicago,

Illinois 60675, in immediately available funds.

 

This Note evidences

indebtedness incurred under, and is subject to the terms and provisions of, the

Credit Agreement, to which reference is made for a statement of those terms and

provisions.  Should the indebtedness

represented by this Note or any part hereof be collected at law or in equity or

in bankruptcy, receivership, or other court proceedings, or this Note be placed

in the hands of attorneys for collection after maturity (by declaration or otherwise),

the undersigned agrees to pay, in addition to principal and interest due and

payable hereon, reasonable attorneys’ and collection fees.

 

	

   

  	

  QUIXOTE CORPORATION

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Leslie J. Jezuit

  	

   

  
	

   

  	

  Name:

  	

  Leslie J. Jezuit

  
	

   

  	

  Title:

  	

  President, Chief Executive

  Officer and Chairman

  
					

 

 

Loans made by THE

NORTHERN TRUST COMPANY (the “Lender”) to QUIXOTE CORPORATION (the “Borrower”)

under the Credit Agreement, dated as of May 16, 2003 among the Borrower,

various lenders (including the Lender), and THE NORTHERN TRUST COMPANY, as

Agent, and payments of principal received on the Note to which this Grid is

attached:

 

	

  Date

  	

   

  	

  Amount

  of Loan

  	

   

  	

  Amount of

  Principal

  Paid

  	

   

  	

  Unpaid

  Principal

  Balance

  	

   

  	

  Notation

  By

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  

 

2

 

Exhibit

10.13

 

TERM LOAN NOTE

 

	

  $4,285,714.29

  	

   

  	

  Chicago, Illinois

  May 21, 2003

  

 

FOR VALUE RECEIVED, the

undersigned QUIXOTE CORPORATION, a Delaware corporation (the “Borrower”),

promises to pay to the order of HARRIS TRUST AND SAVINGS BANK (the “Lender”),

at the principal office of The Northern Trust Company, as Administrative Agent,

in Chicago, Illinois, Four Million Two Hundred Eighty Five Thousand Seven

Hundred Fourteen Dollars and 29/100 ($4,285,714.29), or if less, the aggregate

unpaid principal amount of all Term Loans made or maintained by Lender to the

Borrower pursuant to the Credit Agreement, in installments in the amounts set

forth in Section 2.4(C) commencing on September 30, 2003 and

continuing thereafter on the first day of each December, March, June and

September with a final installment payment equal to the remaining

outstanding principal balance and accrued interest due on the Term Loan

Termination Date.

 

The Borrower agrees to

pay interest on the principal amount hereof remaining from time to time unpaid

at the rates set forth in the Loan Agreement as hereinafter defined (including

all amendments, if any, from time to time made thereto).

 

All payments of principal

and interest on this Note shall be payable in lawful currency of the United

States of America at the Agent’s office at 50 South LaSalle Street, Chicago,

Illinois 60675, in immediately available funds.

 

Should the indebtedness represented

by this Note or any part hereof be collected at law or in equity or in

bankruptcy, receivership, or other court proceedings, or this Note be placed in

the hands of attorneys for collection after maturity (by declaration or

otherwise), the Borrower agrees to pay, in addition to principal and interest

due and payable hereon, reasonable attorneys’ and collection fees.

 

This Term Loan Note is

one of the Term Loan Notes issued pursuant to, and is entitled to the benefits

of, the Credit Agreement, dated as of May 16, 2003 (which, as it

may be amended or modified and in effect from time to time, is herein

called the “Credit Agreement”), among the Borrower, the Lenders party thereto,

including the Lender, and The Northern Trust Company, as Agent, to which

Agreement reference is hereby made for a statement of the terms and conditions

governing this Term Loan Note, including the terms and condition under which

this Term Loan Note may be prepaid or its maturity date accelerated.  Capitalized terms used herein and not

otherwise defined herein are used with the meanings attributed to them in the

Agreement.

 

 

	

   

  	

  QUIXOTE CORPORATION

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Leslie J. Jezuit

  	

   

  
	

   

  	

  Name:

  	

  Leslie J. Jezuit

  
	

   

  	

  Title:

  	

  President, Chief

  Executive

  Officer and Chairman

  
					

 

 

Exhibit

10.13

 

TERM LOAN NOTE

 

	

  $5,714,285.71

  	

   

  	

  Chicago, Illinois

  May 21, 2003

  

 

FOR VALUE RECEIVED, the

undersigned QUIXOTE CORPORATION, a Delaware corporation (the “Borrower”),

promises to pay to the order of LaSALLE BANK NATIONAL ASSOCIATION (the

“Lender”), at the principal office of The Northern Trust Company, as

Administrative Agent, in Chicago, Illinois, Five Million Seven Hundred Fourteen

Thousand Two Hundred Eighty Five Dollars and 71/100 ($5,714,285.71), or if

less, the aggregate unpaid principal amount of all Term Loans made or

maintained by Lender to the Borrower pursuant to the Credit Agreement, in

installments in the amounts set forth in Section 2.4(C) commencing on

September 30, 2003 and continuing thereafter on the first day of each

December, March, June and September with a final installment payment

equal to the remaining outstanding principal balance and accrued interest due

on the Term Loan Termination Date.

 

The Borrower agrees to

pay interest on the principal amount hereof remaining from time to time unpaid

at the rates set forth in the Loan Agreement as hereinafter defined (including

all amendments, if any, from time to time made thereto).

 

All payments of principal

and interest on this Note shall be payable in lawful currency of the United

States of America at the Agent’s office at 50 South LaSalle Street, Chicago,

Illinois 60675, in immediately available funds.

 

Should the indebtedness

represented by this Note or any part hereof be collected at law or in equity or

in bankruptcy, receivership, or other court proceedings, or this Note be placed

in the hands of attorneys for collection after maturity (by declaration or

otherwise), the Borrower agrees to pay, in addition to principal and interest

due and payable hereon, reasonable attorneys’ and collection fees.

 

This Term Loan Note is

one of the Term Loan Notes issued pursuant to, and is entitled to the benefits

of, the Credit Agreement, dated as of May 16, 2003 (which, as it

may be amended or modified and in effect from time to time, is herein

called the “Credit Agreement”), among the Borrower, the Lenders party thereto,

including the Lender, and The Northern Trust Company, as Agent, to which

Agreement reference is hereby made for a statement of the terms and conditions

governing this Term Loan Note, including the terms and condition under which

this Term Loan Note may be prepaid or its maturity date accelerated.  Capitalized terms used herein and not

otherwise defined herein are used with the meanings attributed to them in the

Agreement.

 

 

	

   

  	

  QUIXOTE CORPORATION

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Leslie J. Jezuit

  	

   

  
	

   

  	

  Name:

  	

  Leslie J. Jezuit

  
	

   

  	

  Title:

  	

  President, Chief

  Executive

  Officer and Chairman

  
					

 

 

Exhibit

10.13

 

TERM LOAN NOTE

 

	

  $4,285,714.29

  	

   

  	

  Chicago, Illinois

  May 21, 2003

  

 

FOR VALUE RECEIVED, the

undersigned QUIXOTE CORPORATION, a Delaware corporation (the “Borrower”),

promises to pay to the order of NATIONAL CITY BANK OF MICHIGAN/ILLINOIS (the

“Lender”), at the principal office of The Northern Trust Company, as

Administrative Agent, in Chicago, Illinois, Four Million Two Hundred Eighty

Five Thousand Seven Hundred Fourteen Dollars and 29/100 ($4,285,714.29), or if

less, the aggregate unpaid principal amount of all Term Loans made or

maintained by Lender to the Borrower pursuant to the Credit Agreement, in

installments in the amounts set forth in Section 2.4(C) commencing on

September 30, 2003 and continuing thereafter on the first day of each

December, March, June and September with a final installment payment

equal to the remaining outstanding principal balance and accrued interest due

on the Term Loan Termination Date.

 

The Borrower agrees to

pay interest on the principal amount hereof remaining from time to time unpaid

at the rates set forth in the Loan Agreement as hereinafter defined (including

all amendments, if any, from time to time made thereto).

 

All payments of principal

and interest on this Note shall be payable in lawful currency of the United

States of America at the Agent’s office at 50 South LaSalle Street, Chicago,

Illinois 60675, in immediately available funds.

 

Should the indebtedness

represented by this Note or any part hereof be collected at law or in equity or

in bankruptcy, receivership, or other court proceedings, or this Note be placed

in the hands of attorneys for collection after maturity (by declaration or

otherwise), the Borrower agrees to pay, in addition to principal and interest

due and payable hereon, reasonable attorneys’ and collection fees.

 

This Term Loan Note is

one of the Term Loan Notes issued pursuant to, and is entitled to the benefits

of, the Credit Agreement, dated as of May 16, 2003 (which, as it

may be amended or modified and in effect from time to time, is herein

called the “Credit Agreement”), among the Borrower, the Lenders party thereto,

including the Lender, and The Northern Trust Company, as Agent, to which

Agreement reference is hereby made for a statement of the terms and conditions

governing this Term Loan Note, including the terms and condition under which

this Term Loan Note may be prepaid or its maturity date accelerated.  Capitalized terms used herein and not

otherwise defined herein are used with the meanings attributed to them in the

Agreement.

 

 

	

   

  	

  QUIXOTE CORPORATION

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Leslie J. Jezuit

  	

   

  
	

   

  	

  Name:

  	

  Leslie J. Jezuit

  
	

   

  	

  Title:

  	

  President, Chief

  Executive

  Officer and Chairman

  
					

 

 

	 
	

   

  	

   

  	

  Exhibit 10.13

  	 

	 
	

  TERM LOAN NOTE

  	 

	

  $5,714,285.71

  	

   

  	

   

  	

   

  	

  Chicago,

  Illinois

  
	

   

  	

   

  	

   

  	

   

  	

  May 21, 2003

  
									

 

FOR VALUE RECEIVED, the undersigned QUIXOTE

CORPORATION, a Delaware corporation (the “Borrower”), promises to pay to the

order of THE NORTHERN TRUST COMPANY (the “Lender”), at the principal office of

The Northern Trust Company, as Administrative Agent, in Chicago, Illinois, Five

Million Seven Hundred Fourteen Thousand Two Hundred Eighty Five Dollars and

71/100 ($5,714,285.71), or if less, the aggregate unpaid principal amount of

all Term Loans made or maintained by Lender to the Borrower pursuant to the

Credit Agreement, in installments in the amounts set forth in Section 2.4(C)

commencing on September 30, 2003 and continuing thereafter on the first day of

each December, March, June and September with a final installment payment equal

to the remaining outstanding principal balance and accrued interest due on the

Term Loan Termination Date.

 

The Borrower agrees to pay interest on the principal

amount hereof remaining from time to time unpaid at the rates set forth in the

Loan Agreement as hereinafter defined (including all amendments, if any, from

time to time made thereto).

 

All payments of principal and interest on this Note

shall be payable in lawful currency of the United States of America at the

Agent’s office at 50 South LaSalle Street, Chicago, Illinois 60675, in

immediately available funds.

 

Should the indebtedness represented by this Note or

any part hereof be collected at law or in equity or in bankruptcy,

receivership, or other court proceedings, or this Note be placed in the hands

of attorneys for collection after maturity (by declaration or otherwise), the

Borrower agrees to pay, in addition to principal and interest due and payable

hereon, reasonable attorneys’ and collection fees.

 

This Term Loan Note is one of the Term Loan Notes

issued pursuant to, and is entitled to the benefits of, the Credit Agreement,

dated as of May 16, 2003 (which, as it may be amended or modified and in effect

from time to time, is herein called the “Credit Agreement”), among the

Borrower, the Lenders party thereto, including the Lender, and The Northern

Trust Company, as Agent, to which Agreement reference is hereby made for a

statement of the terms and conditions governing this Term Loan Note, including

the terms and condition under which this Term Loan Note may be prepaid or its

maturity date accelerated.  Capitalized

terms used herein and not otherwise defined herein are used with the meanings

attributed to them in the Agreement.

 

	

   

  	

  QUIXOTE CORPORATION

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

     /s/Leslie

  J. Jezuit

  	

   

  
	

   

  	

  Name:

  	

  Leslie J. Jezuit

  	

   

  
	

   

  	

  Title:

  	

  President, Chief Executive

  	

   

  
	

   

  	

   

  	

  Officer and Chairman

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]